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1. Introduction:
Total quality management is significant for every type of organization and leadership is one
of the principles of total quality management. Leadership can improve the overall
performance or quality by making the entity drift towards achieving excellence of world
class. This is only possible if the new administration embraces the concept of total quality
management in business operations, so that needs and expectations of the customer of the
organization can be consistently satisfied. As organization move from lower levels upwards
developing good leadership, the world of known is left behind with many questions as to
whether the leader is a corporate type who will aim at improving the profits or that is simply
an officer who is non-tactical in nature with irrelevant undertakings. (Pool, 2000). ).
The aim of this report, therefore, is to provide an elaboration of TQM concept on how it
could provide our company with better functions of business operations to achieve a world
class excellence. It is expected from the new leadership to setting goals, convincing,
visioning, motivating and proper communication to ensure people move in the same
direction. (Pool, 2000).
The type of leadership and management skills needed our organization is extraordinary
commitment and innovation. The more complex the organization is, the more it requires
adopting the philosophy and culturing which focuses on continuous improvement. The choice
of the concept of TQM is fundamental to any society by any leader to avoid the collapse of
the business operation (Waldman, 2004). This report will shed light on..
2. Company overview:
TATA motors Company vision is talking about leadership; the company is recognized
globally by many customers, employees, suppliers, and competitors because of the market
share. The baseline operation of the company is to do things right and provide quality the first
time while continuously seeking for improvement (Humphrey & Willis, 2001). It is India's
largest automobile company, with standalone revenues of Rs. 25,660.79 crores (USD 5.5
billion) in 200809. Tata Motors, the first company from India's engineering sector to be
listed in the New York Stock Exchange (September 2004), has also emerged as an
international automobile company. The company is the one of the world's largest car
manufacturer. The foundation of the company's growth over the last 50 years is a deep
understanding of economic stimuli and customer needs, and the ability to translate them into
customerdesired offerings through leading edge R&D. With over 2,000 engineers and
scientists, the company's Engineering Research Centre, established in 1966, has enabled
pioneering technologies and products
The industry has been plagued over the years with quality management system shortfalls. In
many cases, profits have been the driver behind quality failures in the industry. The company
was going into loss because of the quality failures. So top management decided to move
ahead and chose new leadership. So, the faith of the customers towards the product could be
gained again.

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As the department head of the company, I personally believe in achieving higher level
through right application of the TQM tools and approaches to the products and services. It is
the responsibility of the leader to share the vision and establish goals with the companies
personnel taking charge of implementation (Humphrey & Willis, 2001).
TQM implementation efforts for the company is significant, although, following the policy
requirements, the company is reluctant to make public the achievements to do with TQM.
The total quality management concept involves moving together with people in the same
direction by giving assistance through coaching and training rather than dominating the
control (Humphrey & Willis, 2001).
At presently, the company is producing number of cars, but the major issue is the design of
the car. Firstly, people do not like the design itself, they think it as ugly design and secondly
the design is not robust and does not follow safety criteria. Normally, customers demand is of
high quality design that is durable and strong. But company is not producing product of high
quality. There is a need to produce a design of the product with high yield.

TQM and leadership:

TQM is a concept that requires the top management to take charge in leadership and aim for
continuous improvement of the system. Total Quality Management (TQM) describes the
culture, attitude, and organization of a company striving to produce high quality products and
services that meet or exceed customer expectations. Firstly, customer focus is the most
important concept of the TQM Philosophy. Built upon the understanding that quality value of
a product is reduced if it does not meet the customers needs, the customer focus concept
states that the clients wants and/or needs must be met or exceeded. But first, a company must
first determine what those wants and needs are. Company gathers information from market
studies, research groups, and client meetings. It helps to gain revenue, increased effectiveness
and customers loyalty. Taking into account that customer expectations are always changing
(and typically rising as quality management begins to provide results), the continuous
improvement concept stems from a belief that mistakes can be avoided and defects can be
prevented. It extends to all aspects of an organization, from the shop floor to the marketing
department to decision-making. One common approach used to ensure continuous
improvement remains a core concept is the Plan-Do-Check-Act cycle. It is important to
remember that, because this approach is a cycle, the entire process starts over once a new
plan or procedure is implemented.
In the TQM Philosophy, employees are considered a vital part of the quality management
process. They are empowered to make decisions, their contributions are valued, and their
suggestions are implemented. In order to ensure they are able to make logical, valuable
contributions, employees are given quality tools and extensive training in company. They
also receive extensive training to help them understand access quality via quality control and
measurement tools. This gives employees the ability to accurately interpret their findings and
effectively correct problems.

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Providing a design that meets customer expectations is a critical element to building a quality
product. Unfortunately, this can be more difficult than it sounds because most customers
provide general descriptions, such as safe, tough, or sleek. One tool that helps them do
this is known as QFD, or Quality Function Deployment. This tool identifies the requirements
of customers and then scores those requirements numerically. The scores are then translated
into specific product requirements, such as side air bags for safe. This tool can also be
useful for enhancing communication between various company functions and departments.
(CEBOS a division of QAD, 2015)
As mentioned above leadership is a principle of the TQM. Leadership can act as senior
management's tool in implementing TQM First, by modeling the TQM philosophy and
principles within its departmental operations, leadership can serve as a beachhead for the
TQM process throughout the company. Second, leadership, with senior management's
support, can take the TQM process company-wide by developing and delivering the longterm training and development necessary for the major organizational culture shift required
by TQM.
Implementing TQM requires a team effort headed by your organization's leadership team.
Each person involved in change management has their responsibilities, and it is important for
the entire organization to understand the role of leadership in TQM to make delegating
responsibility more effective. TQM requires participation from all of the departments that
will be affected. Company leadership needs to identify what those departments are and create
an implementation team that consists of representatives from each affected group.
Management create a structure that identifies various group leaders, the responsibilities of
those group leaders and an accountability system that insures that the implementation team
meets its timetable for getting the new program or policy in place. Leadership needs to help
the employees understand how the company benefits from the new implementation, but it
also needs to get the organization to see the setbacks of not making a change. TQM within a
company is not an exact process. It is a dynamic procedure that needs to be monitored by
management and altered to meet implementation goals. it is the responsibility of leadership to
put a monitoring system in place, analyze the data that is being generated during the
implementation and make any necessary changes to make the implementation more efficient.
In a typical TQM environment, it is the responsibility of leaders to provide direction for the
future by developing contacts with the workforce a clear vision statement where the future is
easily predicted. Leaders quickly achieve alignment of people towards the vision through
developing relationships with the people by use of avenues like executive steering committee
meetings or day to day interaction with the quality management boards. In most cases good
leaders drive out fear among workers in the event of any mistake, they cause by continuously
motivating and passing improvement. A point to note is that during the implementation of
TQM, all aspects of leadership and management apply. Leaders of different organizations
subjected to the principles of TQM will be required to apply both the skills of leadership and
management. However, because TQM demands a culture of transformation and not simply
the general program, there is a great need for leadership at the implementation phase of TQM
(Barnes, 2008).

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4. Present quality problem in TATA motors:

Organizations try to secure their long-term economic success by continuous improvement of
their products, processes and services in order to maximize their wellbeing. The customers
are very important and it is really crucial to fulfil the demand of customers. The issue that
TATA motors is facing about the design of the car. Nowadays, a number of cars come in the
market with good design structure and of good quality with durability and safety. Tata motors
stood behind of these cars because of lack of quality in design. To tackle the problem and to
compete with the other more popular automobile companies TATA Company follows new
ways and spent huge money for the quality of the design. It is true that the customers
satisfaction is important but the quality should be given without getting any loss and also just
for profit quality should not be effected.
I realised that one of the issue that the company is facing is high quality cost. It is really
important to reduce the cost of quality without compromising with the quality. There is need
of daily management process for reducing the quality cost. The following symptoms show
that there is no cost quality measurement system in TATA motors
1.
2.
3.
4.
5.
6.

Slow rate of improvement of quality

Bureaucracy or complexity in processes and continues to worsen
Changes in one area tend to have large, negative effects in one or more other areas
Management gets personally involved in quality problems only during a major crisis
Management is running out of ideas as to how to cut costs further
All employees are not actively and personally involved in driving the organizations
mission forward
7. Many individuals and departments disagree on what the top priorities are for the
organization
8. Sub-processes and departments are operated in a manner that is detrimental to the
organizations overall best interest

4.1 Goal of Quality Cost:

The goal of any quality cost system therefore is to facilitate quality improvement efforts that
will lead to operating cost reduction opportunities. The strategy for using quality cost is

Take direct attack on failure costs in an attempt to drive them to zero

Invest in the right prevention activities to bring about improvements
Reduce the appraisal costs according to results achieved.
Continuously evaluate and redirect prevention efforts to gain further improvement.

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The quality-costing approach is a proven means of tracking, guiding, and motivating

quality improvement. It also associated with other TQM options.

Figure 1:COQ

The quality cost is further broken up into four further parts:

1. Prevention Cost: Generally the most effective way to manage quality
costs is to avoid having defects in the first place. It is much less costly to
prevent a problem from ever happening than it is to find and correct the
problem after it has occurred.
2. Appraisl cost: Any defective parts and products should be caught as early as

possible in the production process. Appraisal costs are incurred to identify defective
products before the products are shipped to customers. Unfortunately performing
appraisal activates doesn't keep defects from happening again and I realize that
maintaining an army of inspectors is a costly and ineffective approach to quality
control. Employees are increasingly being asked to be responsible for their own
quality control. This approach along with designing products to be easy to
manufacture properly, allows quality to be built into products rather than relying on
inspections to get the defects out.

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3. Internal failure cost: It results from identification of defects before they are
shipped to customers. These costs include scrap, rejected products, reworking of
defective units, and downtime caused by quality problem. The more effective a
company's appraisal activities the greater the chance of catching defects internally and
the greater the level of internal failure costs. This is the price that is paid to avoid
incurring external failure costs, which can be devastating.
4. External failure cost: It includes warranty, repairs and replacements, product
recalls, liability arising from legal actions against a company, and lost sales arising
from a reputation for poor quality. Such costs can decimate profits.
In the past, some managers have taken the attitude, "Let's go ahead and ship
everything to customers, and we'll take care of any problems under the warranty."
This attitude generally results in high external failure costs, customer ill will, and
declining market share and profits.
Some examples of quality cost are given below in the table:
Prevention cost
Systems development
Quality engineering
Quality training
Quality circles
statistical process control
Supervision of prevention activities
Quality data gathering, analysis, and
reporting
Quality improvement projects
Technical support provided to suppliers
Audits of the effectiveness of the quality
system
Appraisal cost
Test and inspection of incoming materials
Test and inspection of in-process goods
Final product testing and inspection
Supplies used in testing and inspection
Supervision of testing and inspection
activities
Depreciation of test equipment
Maintenance of test equipment
Plant utilities in the inspection area
Field testing and appraisal at customer site

Internal failure cost

Net cost of scrap
Net cost of spoilage
Rework labor and overhead
Re-inspection of reworked products
Retesting of reworked products
Downtime caused by quality problems
Disposal of defective products
Analysis of the cause of defects in production
Re-entering data because of keying errors
Debugging software errors

External failure cost

Cost of field servicing and handling
complaints
Warranty repairs and replacements
Repairs and replacements beyond the
warranty period
Product recalls
Liability arising from defective products
Returns and allowances arising from quality
problems
Lost sales arising from a reputation for poor
quality.

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It is responsibility of leadership and mangers to find out the way to tackle the problem of
quality cost. They should find out new ways and ideas to reduce the cost of the quality.
However, it is not only responsibility of the leaders, followers and employees should also
contribute for the profit of the company as well as to attain the world class quality.

5. Organisational culture:
It is believed that an organisation will ultimately get only as far as the organisational culture
takes them. Shein states that organisational culture is a structure of common assumptions
that are distributed among all members of the group to solve internal and external problems
of an organisation and to share their knowledge with new members (Schein, 2004; 17).Tata
follows a strong culture by following moral values and ethics.
There is a good organisational structure of the company that was leading the company
towards the success. In line with its belief that 'People make the difference', TATA focused in
nurturing employee potential through involvement, empowerment and continuous learning.
The organization structure, which lays emphasis on delegation, has helped develop the
company's culture. The structure allows immense scope for continuous improvement;
managers do not need to worry about day-to-day operations, and can thus better focus on
breakthrough improvements. The delegation of responsibility to lower levels has also helped
in developing a culture of initiative and risk taking. The organizational culture can be best
described as one of empowerment, delegation and total employee empowerment (and hence,
employee involvement). The company culture is such that individual as well as teams are
recognized for their achievements. Teams are recognized on a quarterly basis based on their
performance and some key measures. Individual growth is related to one's performance in the
team. Thus, team members cannot shirk their responsibility. In addition, social loafing is not
possible due to peer pressure. Another interesting aspect is that workers are known as
associates and not workers. This simple step helps inculcate a sense of belonging and loyalty
towards the company. Team play is an important characteristic of the culture and the
organization strives hard to maintain and promote it. The team play is defined as the ability to
submerge individual needs to the needs of the group; building on the strengths and
complimenting the weaknesses of other Team Members to ensure group's objectives are met.
Every Team Member identifies himself/herself with the Team and feels proud to be part of
the Team. There are a number of inter Team contests, Team Building exercises, constant
interaction and counselling by Team Developer, Celebration for every small success. A Team
can be in different stages of Team Play. Five levels of evolution have been defined and a
Team's level can be ascertained by observation in a particular period of time.

Central themes should be applied by successful leaders

for transforming the organization:
The first one is keeping the faith; a good example is the Herman Miller furniture company
which adopts new strategies when faced with the financial crisis. The company sticks to the
participative form of management by asking decisions from the employees on the best

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practice. The result of the step taken usually improves the overall productivity of the
company (Black & Porter, 2006).
Setting demand goals is another area applied by organizations; a good example is the
Motorolas goal of six sigma quality that has narrowed the margins of defects. The next point
is to walk the talk as a leader who is the reflection of actions to the people (Black & Porter,
2006).
Other elements to consider are open communication using every mechanism to break down
any barrier that might exist. Leadership also goes by delivering the promises in real time. A
classic example is the Federal Express, which offers services in real time. All the employees
are trained on this basic premise by their immediate supervisors (Black & Porter, 2006).

Vision and Mission:

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Benchmarking:

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Conclusion:
The study shows that defining leadership process and roles are the most important step in
achieving success within an organization. This will lay the foundation to adopt clarity, proper
communication of the vision and employ consistent processes. The final objective of
leadership is to build trust with people while applying the principles of total quality
management in achieving better results through continuous improvement.
The study also identified management efforts that are fundamental to improving the
performance of the organization. Given the TQM tools that help in knowledge sharing,
development of teamwork, a proper innovation that is all dependent on the leadership roles in
developing trust with the workers and customers by enhancing good open communication to
achieve quality.

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