TQM in new car dealerships: a study from the firms’ perspective

Excellence Through Downstream Innovation in Times of Pandemic: Insights from the Auto Sector

The COVID-19 pandemic has disrupted the industrial supply chain globally. The automotive sector in India has also suffered and are trying surviving while reviewing and reinventing business models, structures and processes, to cope with this unprecedented crisis. This study is of an Indian auto OEM major as it focused upon training its downstream partners, to counter a situation of complete lock-down due to the pandemic. The authors attempt to develop a service excellence framework, based upon their unique engagement with 100 plus auto dealers. Critical success factors are identified based on the dynamics between the success factors using the Decision Making Trial and Evaluation Laboratory (DEMATEL) approach. Customer relationship management, service excellence and operations excellence at the dealership level were found to be the key ingredients for survival and success of both the channel partners and the OEM. Service quality benchmarking, People development and Process mapping, were found to be key enablers of excellence in times of crises, creating customer delight and efficient inventory management. Effective communication with staff and inventory management are critical to success, especially in tough times. Customer satisfaction, inventory turnover and revenue from new business are key metrics of success to be focused upon during such times. This is a possible future area for research in managing crises.

Manufacturing excellence using lean systems – a case of an automotive aggregate manufacturing plant in India

Purpose

The paper aims at fulfilling two purposes: (1) to enrich young production shop floor managers to understand and appreciate the different dimensions of manufacturing excellence and (2) to provide a comprehensive industry-based case study to a faculty involved in the teaching-learning process of Lean systems to the Business school management students.

Design/methodology/approach

Imparting learnings through a real-life case study from a manufacturing industry, which successfully doubled its delivery capacity using the project management and Lean systems approach. Value flow techniques have been utilised in the production shop floor.

Findings

Effective implementation of lean thinking can significantly facilitate enhancing plant capacity within the original shop floor area and without hindering the delivery to the customers with growing demand. Outcomes of the plant transformation re-emphasised that effective leadership, a well-constituted project team, project management tools, applied knowledge of lean enablers and its metrics and management's engagement are the critical success factors.

Research limitations/implications

The case has been automotive industry driven.

Practical implications

This real life industry case study is expected to enrich not only the management graduates who would be industry leaders tomorrow but also the practising young shop floor managers who aspire to achieve manufacturing excellence through lean enablers and metrics.

Originality/value

Useful real-life industry-based Lean manufacturing case study to be utilised by the business school faculty members in their class to enrich students/young practising managers.

Achieving better revenue and customers’ satisfaction with after-sales services

Purpose

Branded car dealerships with best revenue by serviced car also have the best after-sales customers’ satisfaction level. The purpose of this paper is to present the analysis of the after-sales quality management practices adopted by dealerships with the best performance in terms of customer’s satisfaction and revenue and how such practices contribute to these results.

Design/methodology/approach

A multiple case study was performed with nine leader branded car dealerships in an emerging country, considering the entrance car. The performance indicators to evaluate customers’ satisfaction, revenue and operational indicators related to product support, brand manifestation and relationship with customers were identified. Quality management practices that support the best results achievement were analyzed.

Findings

The three dealerships that represent Asiatic brands have best customers’ satisfaction and revenue performance. These dealerships typically have different processes comparing with dealerships that represent European and American brands concerning to: continuous improvement management; warranties and stock management; services scheduling; offer bonuses to customers; and customers service that emphasizes focus on technical and commercial expertise.

Originality/value

This research considered indicators performance and, based on that, analyzed the dealerships’ practices that support the best performance. Such aspect has room for academic literature since the quality management research related to car industry focuses mainly on manufacturer and generates managerial insights to the car industry and its dealerships.

Effects of total quality management in local authorities

Purpose

The purpose of this study is to determine the main total quality management (TQM) factors adopted and the respective results achieved by local authorities – municipalities. Determining the degree to which TQM influences the respective results is also an aim of the present study.

Design/methodology/approach

A research study was designed to be carried out in Greek local authorities – municipalities, 125 of which were approached through interviews with chief executive officers (CEOs) based on a structured questionnaire. The TQM practices and results identified in the literature were used as measured variables of the questionnaire. Descriptive statistics and linear regression analyses were applied for the purpose of the study.

Findings

The TQM philosophy is not highly adopted by the Greek local authorities participating in the present study. Moreover, the Greek local authorities do not seem to derive significant TQM benefits. Finally, adopting TQM strongly and positively influences, first, operational and quality performance of the local authorities; second, citizen satisfaction and society results; and third, employee satisfaction.

Research limitations/implications

Subjective data were collected from the CEOs of a small sample of local authorities operating in a European Union country, under circumstances of financial crisis. Based on these limitations, future research studies are recommended.

Practical implications

Areas for improvement are identified for a local authority to develop a robust TQM model, approach business excellence and derive significant benefits.

Originality/value

This is the first research study in the field of TQM to be conducted at city-level administration in Greece.

The role of value and virtues in TQM: an overview of literature

Purpose

– The purpose of this paper is to analyze the relation between values and virtues and the principles of Total Quality Management (TQM) and thus to propose a tentative framework of relationships.

Design/methodology/approach

– The paper is conceptual. It reviews some lists of values present in literature, and summarizes them in a more comprehensive list. Then the list of values is summarized in conjunction with a list of core virtues. Thus, it tries to explain the relation between them and the principles of TQM, passing through the two mediating variables passion and trust.

Findings

– A model of TQM based on core virtues is proposed.

Research limitations/implications

– The lack of empirical data that can validate the model.

Practical implications

– Considering the emphasis placed on virtues, the model can have some practical implications in the field of recruitment, promotion, and leadership.

Originality/value

– The paper attempts to link values and virtues to the principles of TQM by developing a model of interactions. A novel framework that can provide a basis for further research into the profound nature of quality management has been proposed. Furthermore, some implications that should be useful for recruiters and managers are discussed.

The impact of total quality management on service company performance: evidence from Spain

Purpose

– The purpose of the paper is to explore the impact of total quality management (TQM) factors on performance dimensions of service companies.

Design/methodology/approach

– A research project was designed in the Spanish services sector. Companies that had already participated in activities with regard to business excellence were randomly selected and approached through a structured questionnaire, yielding a sample of 151 responding companies. By analyzing TQM implementation and company performance through the exploratory factor analysis, specific TQM factors and performance dimensions are extracted. The TQM factors that significantly influence the performance dimensions are determined through multiple linear regression analyses.

Findings

– According to the findings, the factors describing TQM implementation in service companies concern quality practices of top management, employee quality management, process management, employee knowledge and education and customer focus. Similarly, the performance dimensions revealed concern financial performance, operational performance, customer satisfaction and product/service quality performance. The TQM factors concerning customers, employees and top management significantly affect the performance dimensions.

Research limitations/implications

– The subjective data were collected from quality managers of a small-sized sample of companies operating in a European Union country and belonging to different services sub-sectors. Based on these limitations, future research studies are recommended.

Practical implications

– By focussing on specific TQM factors, a service company can improve its performance dimensions. In doing so, it can lay the foundations not only to survive but to be competitive in the current global scenario that is characterized by an economic downturn.

Originality/value

– This paper describes a reliable TQM model that can be implemented in the services sector and a means by which a service company can improve its performance.