An Empirical Study on Enhancing Product Quality and Customer Satisfaction Using Quality Assurance Approach in an Indian Manufacturing Industry

Abstract

The aim of this paper is to investigate the utilization of quality assurance approach in improving the product quality and customer satisfaction while implementing total quality management (TQM) initiatives in leading tractors manufacturing industry situated in Mohali, Punjab, India and highlight the improvements that have taken place as a result of these initiatives. ABC Ltd. (name changed) started implementing TQM as a business management approach in 2007 and its implementation helped the organization to excel in quality, cost and delivery to gain flexibility, provide quality products of wide range and gain operational excellence. Initially, the focus of the industry was on traditional approach that is inspection and control but after TQM it got shifted to prevention of defects and quality assurance. Improvement in field quality, supplier quality and manufacturing quality were mainly focused under quality assurance approach in order to improve product quality and customer satisfaction. Implementation of TQM initiatives helped the industry to double the revenue, triple the profit in just three years and as a result the company got Deming Prize in 2012. The customer satisfaction index improved from 76 to 106, sales volume increased from 27000 to 67000 tractors and market share enhanced from 9.1 to 12.6 percent after TQM deployment within a period of five years. The empirical study presented in this paper is a novel study on augmenting the product quality and customer satisfaction may give insight to the TQM practitioners in promoting similar approaches in their organizations for enhancing customer satisfaction and product quality.

Keywords

• total quality management
• quality assurance
• customer satisfaction
• continuous improvement