TQM implementation in the Indian automobile sector: insights using system dynamics approach

Application of Total Quality Management (TQM) approach has played an important role in the survival and growth of many industries. Indian automobile sector has also adopted TQM path but it is still a player of little consequence in the global auto market. One of the major reasons for dismal performance of the Indian automobile sector can be attributed to the fact that it has not been able to prioritize and focus on the key variables, which are instrumental in enhancing TQM index. For the success of the Indian automobile sector, it is equally important to understand the implications of key variables in two different market scenarios and take policy decisions accordingly. TQM initiatives also fail due to lack of understanding of the complex interactions among different TQM variables. To overcome these limitations causal loop diagram has been developed to provide better insight regarding interactions and policy experimentations using system dynamics methodology has been used to prioritize the key variables in two different market scenarios. These experimentations reveal that the main contributing variables to enhance TQM index are leadership, strategic planning, customer and market focus, and human resource focus in both the market scenarios. However, the contribution of each variable and the priority of variables change in two different market scenarios.