Foundations of Total Quality Management and Performance Measurement Tools of Nissan Motors

This report critically analyzes the foundations of total quality management and the tools to measure the performance of Nissan Motors. It discusses the principles, importance, and framework of total quality management, as well as performance measurement tools such as cost of quality and balanced scorecard. The report concludes that TQM is essential for organizations to improve their overall management and performance.

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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Purpose...................................................................................................................................4
Principle.................................................................................................................................4
Importance..............................................................................................................................4
Framework.............................................................................................................................5
Performance measurement tools............................................................................................5
Conclusion..................................................................................................................................7

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Executive summary
The aim of this report is to critically analyze the foundations of total quality management and
the tools to measure the performance of the organization Nissan motors. Nissan is well
known for manufacturing innovative and quality vehicles all over the world. The process of
TQM involves every individual to work on the same objective. It aims at overall
improvement of the product and services of the organization and quality of cost. Every
organisation should adapt for TQM to construct products with good quality and eliminate
defective and failure products and services.

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Introduction
This report is mainly based on the foundations of total quality management and
components of performance measurement tools of Nissan Motors. It manufactures vehicles
currently around 20 countries in the world (Hiruma 2013). It offers products and services in
160 countries worldwide (Toma and Marinescu 2013). Nissan continues to enjoy a lunar
reputation around the globe for creating highly innovative vehicles and creative service
programs. Nissan is surrounded by an environment, which is undergoing speedy changes led
by technological innovation. It is vigorously working on innovation by letting in creativity
into the areas of development, and production, vehicle engineering and as well as sales and
services. Nissan is a global company with a variant in diversity and quality and continue to
connect the power and provide solutions to the huge base of customers, which they want and
value.
Discussion
Total quality management (TQM) is a complete outlook to improve the overall
flexibility, competitiveness and effectiveness through planning and organizing each activity,
and involving everyone at each individual level, which improves customer experience
(Yunis, Jung and Chen 2013). The focus is to develop the quality of the products and services
of the organization through the process of internal practices. TQM gets started at the top
management level where a serious commitment to leadership and quality must be established.
Purpose
TQM tends to incorporate all of the managerial functions such as marketing, fiannace
production, design and customer service to highlight on meeting customer requirements and
organizational goals (Ross 2017). It tends to ensure that management adapts a systematic
method and focuses on quality and prevention and not problem detection.

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Principle
TQM has a number of basic principles.
 Process centred
 Employee involvement
 Systematic and process approach
 Continuous improvement
 Beneficiary supplier relationships
 Focus on customer
 Integrated system
 Realistic perspective to decision making
Importance
The culture of the company is formed by values, beliefs and behaviour of the
company. The efficiency of the industry depends on how well the employees perform and
work for the common goal. TQM is mainly concerned with shifting the focus of control from
individuals of outside to inside, so that each individual is responsible for their own
performance (Oakland 2014). Therefore, it is one of the ways of working of Nissan. For
achieving this, Nissan has to educate its employees, understand customer needs and to deliver
quality products, the tasks need to be standardized.
Framework
Many companies switch to total quality models for better performance and to measure
it. One of them is EFQM excellence model, which stands for European Foundation for
Quality Management. The constituents of the EFQM model are strategy partnerships,
leadership, policy, processes and resources (ENABLERS), results of people, society,
customer, and results of key performance (RESULTS). It aims at reasonable excellence, in

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which quality and sustainability are the main elements (Sadeh, Arumugam and Malarvizhi
2013). It consists of an EFQM self-assessment to determine where the organization stands in
the quality process. The bottom arrow in the model indicates that measuring and evaluating is
a continuous process. Self-assessment EFQM must be a regular activity, as it tends to identify
opportunity for improving the performance through systematic process and people. Self-
assessment of EFQM can be done by using RADAR, which stands for Results, Approach,
Deployment, Assessment and Review. There are a certain number of approaches for self-
assessment, which includes groups, matrices, surveys, award simulations, hybrid approaches
and activity audits. The assessment comprises of five steps:
 Determining the quality of operational management
 To set standards for the all the key nine areas
 Formulating improvements
 Application of improvements in the plan
 Monitoring the actions
Performance measurement tools
The means to successful measurement of performance at the tactical level is to
identify a set of critical success factors (CSFs) and related key performance indicators (KPIs).
The factors that are crucial to the successful performance measurement systems includes
management support at top level, for measurement of non-financial performance, in the
context of development of performance measurement involving all individuals, including the
suppliers and customers in the measurement process of performance and the recognition of
the key factors of performance. Two tools beneficial to Nissan:
Cost of quality

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The analysis of costs related to quality provides a means of analyzing the
management effectiveness of quality and to determine the opportunities, problem areas,
action priorities, and savings. It can be categorized into appraisal, problem areas and
maintenance (Dale and Plunkett 2017). Cost of quality failure is the disparity between the
real cost of the product and what the reduction cost would be, had there been no possibility of
malfunction of products or services or defects in manufacturing. Nissan is well known for
manufacturing quality products and services (Nissan-global.com. 2019). It would be
beneficial for the company to determine the quality effective management and improve the
process, designs and systems and preventive measures to improve cost failure.
Balance scorecard
It includes results of the key performance, customer, society and employee.
Organizational KPOs (Key performance outcomes) and KPIs (Key performance indicators)
should be resulting from balance of internal abilities against the necessities of recognized
stakeholder groups (Pimentel and Major 2014). The derivation of KPOs and KPIs may follow
the balanced scorecard model. It is a strategy map and the key element is customer
perspective. Nissan is more focused on manufacturing vehicles based on customer need and
this tool helps in identifying and sustaining the ability to change and improve in the service
(Nissan-global.com. 2019).
Conclusion
Therefore, from the above report it can be concluded that an action plan is becoming
every employee’s thinking because it constitutes Nissan’s way of working. TQM is a
continuing process that requires improving the culture in the way such that everyone has
common goals and looks for ways of performing better. It involves making each individual
feel that their efforts are valued and helping to develop their skills and capabilities. Therefore,

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TQM should be tailored by every organization to ensure superiority in products and services
only are manufactured to improve the overall management and performance of the
organization.

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References
Dale, B.G. and Plunkett, J.J., 2017. Quality costing. Routledge.
Hiruma, A., Nissan Motor Co Ltd, 2013. Motor supporting structure. U.S. Patent 8,511,416.
Nissan-global.com. 2019. Nissan-global.com. [online] Available at: https://www.nissan-
global.com/EN/index.html [Accessed 14 Mar. 2019].
Oakland, J.S., 2014. Total quality management and operational excellence: text with cases.
Routledge.
Pimentel, L. and Major, M.J., 2014. Quality management and a balanced scorecard as
supporting frameworks for a new management model and organisational change. Total
Quality Management & Business Excellence, 25(7-8), pp.763-775.
Ross, J.E., 2017. Total quality management: Text, cases, and readings. Routledge.
Sadeh, E., Arumugam, V.C. and Malarvizhi, C.A., 2013. Integration of EFQM framework
and quality information systems. Total Quality Management & Business Excellence, 24(1-2),
pp.188-209.
Toma, S.G. and Marinescu, P., 2013. Global strategy: the case of Nissan Motor
Company. Procedia Economics and Finance, 6, pp.418-423.
Yunis, M., Jung, J. and Chen, S., 2013. TQM, strategy, and performance: a firm-level
analysis. International Journal of Quality & Reliability Management, 30(6), pp.690-714.

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