The Producers and Marketers of Chevrolet - Research Paper Example

Total Quality Management Table of Contents Section Introduction 4 Section 2 – Context: Company XYZ Logistics 5 2 Main Products, Services and Customers 5 2.2. Order Qualifiers and Order Winners 7 Section 3 – Operational processes 7 3.1. The Designing of New Chevrolet Models 8 3.2. Technical Development 10 3.3. Marketing the Product 12 Figure 1: Diagrammatic Representation of the Operational Process of Chevrolet 13 Section 4 – Literature review: TQM 14 4.1. Process/ Prevention 15 4.2. Training and Education 15 4.3. Empowerment/ Organisation 15 4.4. Leadership and Commitment 16 4.5. Application of Concepts 16 Figure 2: The Concept of TQM 16 16 4.6. Future of TQM 17 Section 5 – Implementation of TQM in the Operational Process of Chevrolet 18 5.1. Process/ Prevention 18 5.2. Training and Education 18 5.3. Empowerment/ Organisation 19 Figure 3: TQM Process of General Motors 19 Section 6 – Conclusion 20 20 References 21 Section 1 – Introduction With the increasing influence of globalisation, the business environment is becoming more complex and wider affecting almost every organisation irrespective of its organisational structure and operations. Consequently, the competition is also at a rise due to which the competitive firms are focussed on developing competitive strategies, such as differentiation strategies, diversification strategies among others. It is in this context that the organisations are also considering the aspect of Total Quality Management (TQM). From the managerial perspective, TQM refers to a philosophy and/or a paradigm which is emphasised on continuous improvements of products and/or services. It is often defined as a comprehensive management process which principally focuses on the aspect of continuous quality improvement. To be precise, the TQM approach intends to satisfy the customers’ and/or the owners’ needs with efficiency and is driven by the continuous improvement of the entire operation process (PHCC Educational Foundation, 1996). With this virtue, the objective of the paper is to study the TQM approach adapted by General Motors (GM) in order to provide quality services to the potential customers and/or owners of Chevrolet. Thereby, the discussion of the paper will intend to identify the various attributes of the operational process of GM. It shall also consider reviewing various literatures relevant to the topic in order to contextualise the findings comprehensively. Section 2 – Context: Company XYZ Logistics Chevrolet is a world renowned brand and is owned by GM, an American auto maker which is also recognised as one of the market leaders in the international automotive industry. Besides other brands owned by the company, Chevrolet happens to be one of the most popular and successful brands marketed by GM. It was first introduced in the market during early 1900s and since then it has gained a remarkable growth in the international platform. Notably, it is marketed in 130 different countries including UK and other major countries of the European region with average sales of 3.5 million vehicles annually (Chevrolet Europe, 2010). 2.1. Main Products, Services and Customers Chevrolet is a major brand manufactured and marketed under the policies of GM. There are also various sub-brands under the brand name of Chevrolet which are also marketed by GM. To be mentioned, the sub-brands of Chevrolet are Spark City, Cruze Sedan, Aveo, Captiva SUV, Epica, Corvette and others. Thus, it is quite apparent that the brand and its parent company offer a wide range of products to its customers (Chevrolet Europe, 2010). The services rendered by the brand are also available at a wide range from marketing to after and before sales services. To be precise, the brand in Europe serves the customers to modify the design of the car according to their convenience as a before sales service. It also includes test drive services in the category of before sales services. On the other hand, as after sales services, the brand offers vehicle inspections by expert professionals and the facilities of trade-in. Credit card facilities and instalment buying facilities are also rendered by the brand marketers to its customers. It also offers GM Protection Plans as an insurance instrument to its customers. In addition the market offers warranty of five years on the engine and its battery (General Motors, 2010). Other than these marketing services, the brand offers various facilities and services to its participants in the supply chain. For instance, the manufacturing units of Chevrolet located all across the world focus on the quality and the standardisation of the product and intend to deliver their products just-in-time to the next participant, i.e. the marketer. However, in Europe the operations and services of Chevrolet are concentrated on the designing of the car models (i.e. the pre-production services) and marketing them in the region (General Motors, 2010). According to the above discussion, the brand offers a wide range of products to its customers, from luxury cars to sport cars. The price range of the cars is also structured according to the features of the models, ranging from a minimum of $12,725 (Aveo Sedan) to $112,050 (Corvette ZR1) and above (Chevrolet, 2011). This depicts that the marketers of the brand primarily targets the elite class of customers, but also focuses on the customers with middle income level in the economy. In this regard, the brand can be witnessed to serve its potential customers with varieties of services which also prove to be cost effective and thus, increasing the affordability of the brand. 2.2. Order Qualifiers and Order Winners In the operational process of the brand, the order qualifiers are those which have the ability to deliver the products according to the requirements and just-in-time with minimum waste. Order winners in this case can be referred to the units which are able to produce designs according to the preferences of the targeted consumers and efficiently modify the design within a short span of time due to the occurrence of technical deformities. Moreover, due to the fact that the organisational operations of GM are also concerned with the repair and after sales services, the marketing units which are efficient in dealing with such issues are also recognised as order winners. Section 3 – Operational processes In the European region, only few but crucial stages of the entire operational process of Chevrolet is performed, i.e. the designing of new models and or car accessories, technical development and marketing. However, the entire production process is executed according to the GM’s Global Manufacturing System (General Motors, 2010). 3.1. The Designing of New Chevrolet Models Input Resources Transforming Activities Output Licences and legal amendments Raw materials, such as metals, fuel, electricity, and others Advanced technological systems Electronic communication systems Project owner and his/her team Inventory Operating capital Initial process study: Identification of the customer requirements, market trends, and the level of efficiency demanded by the company’s goal Product benchmark identification Assumption of the product reliability Identification of design goals in terms of quality, reliability, affordability and safety Preparation of product assurance plan Preliminary bill of raw materials Preparation of a flow chart concerned with the designing process Identification of the requirements of new tooling and other equipments Engineering drawings and specifications Material specifications Identification of the failure modes of the design Prototype of the design for further testing Listing of the characteristics of the design Obtaining the management support Failure Modes and Effects Analysis (FMEA) of the design proposed Review of the design Designing the manufacturability and assembly requirements Building Prototype Source: (Fowler, 2006) 3.2. Technical Development Input Resources Transforming Activities Output Developed production plan Prototype of the design FMEA of the design Characteristics of the design Its effectivity in satisfying the customers’ and organisation’s demand List of materials to be used in the design Inventory Measurement of system analysis plan Preparation of the floor plan layout Preparation of characteristics matrix Formation of FMEA according to the technology department Preliminary study of process capability Pre-launch of the control plan Obtainment of operators’ instructions Comprehending the standards and specifications of the design Reviewing the quality system Production trial run Evaluation of the measurement systems Validation testing of the production Evaluation of the packaging Ultimate design of the product to be marketed Comprehensive idea of the successiveness and applicability of the design Quality assurance Advanced technological support Management support Efficient communication with other participants in the production process Preparation of the production control plan Obtaining the approval of the production part from the management Planning the quality Source: (Fowler, 2006) 3.3. Marketing the Product Input Resources Transforming Activities Output Inventory Management Support Transportation facilities Well-structured marketing plan Identification of the market demand Recognition of the characteristics of the design Developing quality assurance Identification of the quantity demanded Warehousing Identification of the transportation cost Pre-testing the product in the market Developing promotional activities to attract customers Analysis of the sales figure Recognition of the product continuation period The above description states the various stages and almost all of the factors are included in the initial phases of the overall production process of Chevrolet by GM in Europe. According to the automobile engineers and the company as well, the entire process is referred to as the Production Part Approval Process (PPAP) which is again accumulated with the Advanced Product Quality Planning (APQP). However, the production process can be well-depicted with the assistance of the diagram below: Figure 1: Diagrammatic Representation of the Operational Process of Chevrolet Source: (Fowler, 2006) Section 4 – Literature review: TQM Authors and various other analysts have often identified the necessity of TQM as a result of the increasing competition and complexity of the industrial sectors in the international platform. It was first introduced in 1949 when the Japanese scientists and government officials were focussed to improve their quality of life after World War II. However, in UK it was introduced in the late 1980s (Martínez-Lorente & Et. Al., n.d.). According to the International Standard of ISO 9000, Total Quality Management is defined as “a management approach of an organisation, centered on quality, based on the participation of all its members and aiming a long term success through customer satisfaction and benefits to the members of the organisation and to the society” (Subburaj, 2005). With this virtue various elements can be identified in the implication of the concept of TQM. For instance, there are eight different elements recognised in the paradigm of TQM, i.e. communication, recognition, ethics, integrity, trust, training, teamwork, and leadership. However, recognition, training, integrity, teamwork and leadership are categorised as the most crucial elements of the TQM approach (Bernal, 2008). 4.1. Process/ Prevention One of the crucial elements of the TQM paradigm is its recognition as a process and also as a preventive measure. To be precise, the process of TQM evidently depicts that an efficient implication of the approach can effectively prohibit the occurrences of any kind of defect in the production process, thus reduces wastage of resources (Sundara, 2001). 4.2. Training and Education The process of TQM has often been recognised to support the on-job training of employees and other participants of an organisation. It is in this context, that participants in the entire process are benefited by continuous evaluations and identification of the various prospects of the product and/or services which in turn assists in improving the overall quality (Subburaj, 2005). 4.3. Empowerment/ Organisation With concern to the applicability and the efficiency of the TQM approach, it also been stated by various analysts that only the empowerment of employees in an organisation are not sufficient. TQM has become an integral part of any organisation intending to imply the approach covering the entire organisational environment (PHCC Educational Foundation, 1996). 4.4. Leadership and Commitment Leadership and commitment of the team participating in the TQM paradigm also has a great significance on the efficacy of TQM. It is worth mentioning, that without the implication of an appropriate and effective leadership traits along with the commitment of the ultimate executors of the process, the approach shall result in failure (PHCC Educational Foundation, 1996). 4.5. Application of Concepts In a nutshell, the efficiency of TQM depends entirely on the application of the characteristics of the concept. To be mentioned, the concept of TQM accumulates all the processes of training and education, empowerment, commitment, and leadership in order to enhance its efficiency and applicability. All these elements are termed to be quite essential to imply the TQM paradigm successfully (PHCC Educational Foundation, 1996). Figure 2: The Concept of TQM 4.6. Future of TQM TQM is certainly a broad concept covering almost every aspect of the organisational operations. Thus, it is quite likely that the implication of TQM is largely influenced by various factors which directly and/or indirectly effect the organisational operations. According to various authors, the influencing factors of TQM can be categorised as the internal factors (active in the internal environment of the organisation) and the external factors (active in the external environment of the organisation). These factors in turn are affected by the continuous changes occurring in the international business environment bringing about changes in the ultimate implication of the TQM approach. As quoted by several analysts, the paradigm of TQM in the future is most likely to become more complex and broader with subsequently increasing importance and necessity (McAdam & Henderson, 2003). Section 5 – Implementation of TQM in the Operational Process of Chevrolet 5.1. Process/ Prevention In the production process of Chevrolet, it is quite apparent that the organisation considers evaluation and re-evaluation for multiple times on the designing and the ultimate production of the product. Most of the evaluation and re-evaluation strategies to develop an appropriate design are undertaken during the product designing and development process. This depicts that the TQM process of Chevrolet helps preventing the risk of product failure to a large extent in its final execution. It also prevents wastage of raw materials, as the orders to the suppliers are only given at the approval of the product design by the management (General Motors Corporation, 2007). 5.2. Training and Education PPAP holds a significant position in the production process of Chevrolet according to the organisational operations of GM. Thus, it becomes quite essential for the executors of the process to be educated in terms of the designing process requirements along with the ability to identify the various pros and cons of the developed product. Therefore, training and education are intrinsically related to the TQM process of Chevrolet. 5.3. Empowerment/ Organisation The TQM process in Chevrolet effectively relates the entire organisational structure. For instance, it relates the designing team with the technological development department which is again coherently related with the production and the marketing team of the organisation all around the world. Therefore, it is quite apparent that the TQM process in Chevrolet not only empowers the employees, but also improves the overall performance of the organisation. However, the TQM process implied by GM which is also implied in the case of Chevrolet Production System can be well-depicted with the assistance of the image below: Figure 3: TQM Process of General Motors Source: (Fowler, 2006) Section 6 – Conclusion Undoubtedly, the paradigm of TQM has a wide and highly beneficial applicability in the present era. It not only assists the organisation in achieving a higher level of efficiency in its operations, but also enhances its market potential with extensive research work and pre-production analysis. Conversely, there are also a few limitations of TQM which should be considered by organisations while implementing the approach in its operational process. For instance, the process is termed to be complex which can create confusions in the organisational environment and also prove to be quite time consuming. Despite of these limitations, the efficient application of the approach can reward higher competency to the organisation. In this milieu, it can be stated that the TQM process implied by the producers and marketers of Chevrolet is quite effective in eradicating these limitations with a systematic approach. However, the organisation should continuously focus on the modification of the process in order to maintain its efficiency. References Bernal, J. L. C., 2009. The Eight Elements of TQM. Slide Share. [Online] Available at: http://www.slideshare.net/silverhawk/the-8-elements-of-tqm-521524 [Accessed March 22, 2011] Chevrolet, 2011. Pricing and Offers. Pricing and Affordability. [Online] Available at: http://www.chevrolet.com/pages/mds/pricing/affordability.do [Accessed March 22, 2011] Chevrolet Europe, 2010. About Chevrolet Europe. Chevrolet in Europe. [Online] Available at: http://www.chevroleteurope.com/ [Accessed March 22, 2011] Fowler, D. P., 2006. DaimlerChrysler, Ford, General Motors. PPAP 4th Edition. [Online] Available at: http://gaskinsco.com/PPAP_final.pdf [Accessed March 23, 2011] General Motors, 2010. Owners. Service. [Online] Available at: http://www.chevrolet.com/owners/service/ [Accessed March 22, 2011] General Motors, 2010. Global Design, Product Development and Manufacturing Network. Company. [Online] Available at: http://media.gm.com/content/media/intl/en/company_chev/global_design_product_development.brand_chevrolet.html [Accessed March 22, 2011] General Motors Corporation, 2007. GM Customer Specifics - ISO/TS 16949. General Motors Global Purchasing and Supply Chain Global Supplier Quality. [Online] Available at: http://www.iaob.org/pdfs/GM_CustomerSpecifics_May2007.pdf [Accessed March 23, 2011] McAdam, R. & Henderson, J., 2003. Influencing the Future of TQM: Internal and External Driving Factors. International Journal of Quality & Reliability Management. [Online] Available at: http://www.gepeq.dep.ufscar.br/arquivos/Influencing%20the%20future%20of%20TQM.pdf [Accessed March 22, 2011] Martínez-Lorente, A. R. & Et. Al., No Date. Total Quality Management: Origins and Evolution of the Term. Universidad Politécnica de Cartagena. [Online] Available at: http://repositorio.bib.upct.es/dspace/bitstream/10317/441/1/tqm2.pdf [Accessed March 23, 2011] PHCC Educational Foundation, 1996. What is Total Quality Management? Total Quality Management: A Continuous Improvement Process. [Online] Available at: http://www.foundation.phccweb.org/Library/Articles/TQM.pdf [Accessed March 22, 2011] Subburaj, 2005. Total Quality Management. Tata McGraw-Hill Education. Sundara, R., 2001. Total Quality Management. Tata McGraw-Hill Education. Read More