Case Study: SPC and TQM for High-Quality Service Delivery

This case study analysis delves into the application of Statistical Process Control (SPC) and Total Quality Management (TQM) strategies for enhancing service quality, particularly within the automotive industry. It examines the role of quality control tools, techniques, processes, and applications of SPC, emphasizing their importance in continuous system development and customer satisfaction. The report discusses the effective use of these tools, recommending improvements in areas such as employee training and test driving procedures. It further explores the concept of continuous improvement, highlighting its key elements, and compares case studies from Toyota and Ford to illustrate the impact of TQM and continuous improvement on manufacturing processes. The analysis concludes that SPC and TQM are crucial for maintaining high-quality standards and ensuring customer loyalty by addressing issues like product defects and variability.

Running head: Case Study Analysis 1
Business research methodology
Statistical Process Control and TQM strategies in providing high quality of
services

Case Study Analysis 2
Contents
Introduction......................................................................................................................................3
The role of quality control tools, techniques, processes and applications of SPC..........................3
Effectively quality tools and techniques and recommendations for the application of statistical
process control in that particular application...................................................................................5
Recommendations for the application of statistical process control............................................5
The concept of total quality management and continuous improvement........................................6
Analyse the principles, tools and techniques of TQM and continuous improvement.....................7
Comparison of case studies that affects quality performance in the manufacturing and service
environments....................................................................................................................................7
Conclusion.......................................................................................................................................8
References......................................................................................................................................10

Case Study Analysis 3
Introduction
The main aim of this report is to analyze the case study by providing depth detail of quality
improvement tools and techniques. Quality improvement is deemed as key requirements in any
production system that gives products or service as its outputs (Yeh, Pai & Yang, 2010). Hence,
it is a key objective in any manufacturing industry. The car making industry is required to spend
a lot of efforts in handling and developing the quality of the products utilizing a range of control
tools and techniques. It has been found that the quality concerns affect the whole company in
every competitive environment. It is not essential to decrease the wastage, but also to content
satisfaction of the customer and constant cost reduction. The discussion will be made on the
various tools and techniques which should be entailed in the process of the company for the
purpose of increasing the enthusiasm of the employee.
The role of quality control tools, techniques, processes and applications of SPC
Statistical process control (SPC) is a philosophy, a strategy, and a set of a technique for
continuing development of systems, processes, and outcomes (Tsung, Li & Jin, 2008). Quality
control tools can be concerned with product expansion, manufacture and marketing also.The
quality control is meant to assure the customers by delivery of defect-free products (Garcia-
Sabater, Marin-Garcia & PerelloMarin, 2012). The quality control tools are able to understand
the process so that they can be developed by means of systematic approach needs the better
understanding of a general tool or techniques. The effectual use of these tools and techniques
needs their request by the people who really work on the procedures, and their obligation to this
will only be likely if they are guaranteed that management cares about recovering quality. The
tools and techniques most commonly used in process improvement are brainstorming, control

Case Study Analysis 4
charts, process flowcharting, check sheets and Histograms. This tool should be applied in the
industry as they help in increasing the efficiency of the employees and improving the quality of
the products. The SPC approach is relied on learning by data and has its underpinning in the
theory of disparity (Furuhjelm, Swan & Tingström, 2011).
The role of quality control tools, techniques, processes and applications of SPC is wider in the
car making industry because they help in making good products with high quality.
Pareto Diagram is an effective tool that manages items in order to the magnitude of their
contribution, thus recognizing little products wielding utmost influence. This tool is utilized in
SPC and quality improvement for precedence projects for development, recognizing products on
which most complaints are gained, recognizing the nature of complaints happening most often,
recognizing most normal reasons for rejections (He, Tang & Chang, 2010). The Histogram tool
helps in collecting data and arranging in ascending order and divides the huge range of values
into a convenient number.
SPC has been applied most recurrently to domineering built-up lines, it applies evenly fine to
any process with a quantifiable output (Lim, Antony & Albliwi, 2014). Key tools in SPC are
control charts and cause & effect diagrams focused on continuous improvement. According to
case study, it is required for the company to keep the focus on quality models so that the issue of
wore tyre could not rise again as it can destroy the image of the company and affect the income
of dealers. It has been found that SPC must be exercised in 2 phases: the initial phase is the first
establishment of the process, and another phase is the continuous production use of the process.
In second phase, company make decisions as per proper examination which is entirely relied on
the change in 5M&E conditions (Man, Machine, Material, Method, Movement, Environment)
and have on the rate of components utilized in the developed process such as machine parts and

Case Study Analysis 5
fixtures). The main benefit of SPC over other process of quality control, like inspection, is that it
highlights untimely recognition and protection of issues, before the correction of issues after they
have happened (Gérard, Grandhaye, Marchesi, Kafrouni, Husson & Aletti, 2009).
Effectively quality tools and techniques and recommendations for the application of
statistical process control in that particular application
The company has been used poor quality tools and techniques as it can be seen from case study
that the customer had to face issues of the worn tyre after only 10,000 miles. There was no
proper specification of how to use quality tools in making improvement in products. There
should be a proper strategy in the industry in which car dealer should focus on test driving and
customer feedback because as it has been read that customer faced issue in tyre in initiating level
of purchase. It has been found that there are major three phases of application of SPC such as
understanding the process and the specification limits, eliminating assignable sources of
variation so that the process is stable and evaluating the ongoing production process, facilitated
by the use of control charts, to detect significant changes of mean or variation (Montgomery,
2009). It would be helpful in reducing the waste and increasing the customer satisfaction.
Recommendations for the application of statistical process control
There is some application of statistical process control which should be improved for making
changes in the process. It has been recommended to the organization in the application of the
understanding of the process, the company needs to provide a training program to the employees
for the purpose of making improvements within the operation. SPC is an effective process
improvement technique to help in keeping a process on target with minimal variation. It has been

Case Study Analysis 6
recommended to the dealer to apply the SPC so that the process of manufacturing the car and
tyre can be done in an efficient manner (Goetsch & Davis, 2014).
The concept of total quality management and continuous improvement
Total quality management is considered as a management philosophy which highlights on the
people and work process, with the major concern for making satisfied the customers and
developing the performance of the organization. It entails the effective coordination of work
processes which permits for constant improvement in all business units with the objective of
meeting the expectations of the customers (Barczak, Griffin & Kahn, 2009). It highlights the
totality of quality in all surfaces of an organization with the objective of deducting waste and
rework to decrease cost and amplify efficiency in production. Total quality management is
applicable to any kind of organization irrespective of size and aims even the public sector
organization will soon initiate adopting the philosophy for the aim of making them effectual in
meeting demands of the public (Bergman & Klefsjö, 2010). On the other hand, the acceptance of
the ideas by the most organization has been troubled due to their nonconformity with the
measures and principles of Total Quality Management implementation. With respect to
manufacturing industry, it can be elaborated that the US and Japanese Total Quality Management
gurus emphasized and elaborated their task mainly to manufacturing, and therefore the
application of total quality management in service was only given secondary attention (Ross,
2017).
The concept of continuous improvements helps in delivering high quality of services in
manufacturing the products so that the image of the company could not get affected due to lack
of performance (Tsung, Li & Jin, 2008). It encompasses the nine central commandments of

Case Study Analysis 7
continuous process improvements. These elements help are practical learning, waste should be
eliminated, employees should be involved in the improvement process, increased productivity,
any location should apply, transparent communication, the greatest need of improvements should
be focused, improvement in the processes and prioritize the improvement of people (Lim,
Antony & Albliwi, 2014). It has been analyzed that these elements help the business in making
perfect products for the purpose of delivering high quality of the products.
Analyse the principles, tools, and techniques of TQM and continuous improvement
Along with, it has been analyzed that these tools help in making improvement in the
manufacturing process and in delivering the high-quality performance within the business. The
concept of TQM is being applied by manufacturing companies that increase the productivity of
the business. TQM has the main concept to focus on the customers, continuous improvement,
quality improvement, accurate evaluation and involves all employees that would be helpful for
the business in providing high quality of services to the customers (Fotopoulos & Psomas, 2009).
On the other hand, continuous improvement facilitates the business to provide high quality
services through increasing practical learning by which the reduction in quality of services will
be done. Continuous improvement could help in not making bad products such as a low quality
tyre of the car which could be the reason of losing the life of someone. It has the strategy of
involving employees in the improvement process (He, Tang & Chang, 2010).
Comparison of case studies that affects quality performance in the manufacturing and
service environments
It has been found in the case study of Toyota Company that the company is practicing the three
components of total quality management namely employee involvement, continuous

Case Study Analysis 8
improvement, and customer satisfaction. Toyota Company has belief in investing TQM so that
their manufacturing process can be improved in an efficient manner and they can provide a high
quality of services to the customer for the purpose of remaining in the competition. TQM and
continuous improvement concepts are integrated into every aspect of the operation of the
company, including information systems (Unger & Eppinger, 2011). As per the case study of
Ford, it has been found that the Six Sigma Master Black Belt who runs Six Sigma Practices at
Ford, “Waste and lack of quality on various levels.” This is fact especially when one focuses on
claim system of the Ford. As of 2008, the warranty repair rate for Ford by utilizing Six Sigma
decreased by 60%. The company has introduced the Six Sigma implementation for 2010 product
which helps in the quality operating system to identify the issues in the manufacturing process
(Ross, 2017).
It has been cleared from above case studies that many manufacturing companies are incorporated
the continuous improvement and TQM in the process for the purpose of making improvement in
the car making process so that they can provide high quality services to the customers. It has
apparent that the dealers should focus in these strategies so that the customer could not face any
issues regarding manufacturing because it would decrease the customer loyalty towards the
company that can affect the sales of the company.

Case Study Analysis 9
Conclusion
It can be concluded from the above discussion that the role of SPC is great in making continuous
improvement in the process for the purpose of attaining better outcomes. Quality control tools
can be concerned with product expansion, manufacture, and marketing. The discussion has been
made on the SPC tools and its effectiveness because it can build the strong process which
increases the revenues of the company. It has been analyzed that there should be a proper
strategy in the industry in which car dealer should focus on test driving and customer feedback.
The role of TQM and the continuous improvement in providing a high quality of services have
been elaborated under this report so that the further implementation can be done with efficient
manner without any flaw.

Case Study Analysis 10
References
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Bergman, B., & Klefsjö, B. (2010). Quality from customer needs to customer satisfaction.
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Case Study Analysis 11
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