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Baku Engineering
University

Industrial
Engineering-2014

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M.Hajiyev    
               F.Huseynov

 

 

 

 

 

Automotive Industry and

The Effects of TQM

 

 

 

 

 

 

Baku-2017

Contents
Introduction.. 3
Brief history of automobile. 3
Slogans of the legendary cars. 4
Selling information.. 4
Most sold cars in the world.. 6
TQM tools in industry. 6
Customer satisfaction.. 8
Survey. 8
Defect reduction.. 9
Employee morale. 9
References. 10
 

 

 

Introduction

An automotive industry is a crucial
for all widespread array of organizations and companies convoluted in also the design, manufacturing, marketing, development,  and selling of motor vehicles, most of them are
called automakers. It is one of the world’s most important economic sectors by its
distinct revenue. The automotive
industry does not consist of industries committed to motor fuel filling stations and  the maintenance
of automobiles following delivery to the end-user, such as automobile repair shops .

Brief history of
automobile

In
1808 François Isaac de Rivaz designed the first car powered by
an internal combustion engine fueled by hydrogen.1

Ø  1769:
J. Watt invented an interchanging steam engine with a condenser.

Ø  1816:
R. Stirling invented a hot air engine (Stirling engine) which
utilizes a reheat energy.

Ø  1839:
J. Ericsson developed numerous hot air engines (Ericsson engine) in
these days.

Ø  1876:
N. Otto settled a stimulus ignition engine (gasoline engine).

Ø  1883:
C. Laval developed a steam turbine.

Ø  1892:
R. Diesel invented the principle of a compression ignition engine (Diesel
engine).

Ø  1930:
F. Whittle invented a gas turbine for
an airplane.

Ø  1944:
A practical rocket engine is
developed in Germany.

Ø  1952:
F. Bacon invented a central fuel cell.

In 19th , Steam powered
vehicles, Brakes, Multi speed transmissions, Better steering
efforts help to improvements in railway locomotives.

Slogans of the legendary cars

If
you’re observing for an assembly of car slogans from a great number of
auto-mobile manufacturers, you’ve landed on the right page.2

– The new slogan for the latest
campaign is ‘Designed For Driving Pleasure.’ BMW

– The slogan for the brand is “the
best or nothing” (Mercedes)

– ”We are the competition.” – Ferrari

– ”The pursuit of perfection.” –
Lexus

– “Grace…space…pace.” – Jaguar

– 
There is no substitute. – Porsche

–  
“Moving
Forward,” – Toyota

– 
“Go Further.” – Ford

– “New thinking, new possibilities” – Hyundai

 

Selling information

Over the entire
world, there were about 806 million light trucks and cars on the road in 2016,
consuming over 980 billion litres (980,000,000 m3) of diesel and gasoline
fuel yearly. For many developed economies an automobile is a primary type of
transportation. The Detroit branch of Boston Consulting Group predicts
that, by 2018, one-third of world demand will be in the
four BRIC markets (Brazil, Russia, India and China). For the time
being, in the developed countries, the automotive industry has decelerated
down. It can also be anticipated that this trend will carry on, especially as
the younger generations of people (in highly urbanized countries) no longer
want to own a car anymore, and prefer the other modes of transport. Other possibly
dominant automotive markets are Indonesia and Iran.  Emerging auto markets already buy more cars
than conventional markets. According to the report of a J.D. Power study, evolving
markets accounted for 51 percent of the global light-vehicle trades
in 2016. The revision, completed in 2015 expected that trend to accelerate. Conversely,
more latest reports (2016) confirmed the contradictory; specifically, that the
automotive industry was reducing down even in BRIC republics. In the United
States, vehicle sales peaked in 2015, at 17.4 million pieces.

 

to 1950; USA had dominantly
formed further than 80% of motor vehicles.

to 1950s; UK,
Germany and France restarted production.

to 1960s; Japan
started fabrication and increased dimensions through the 1980s. US, Japan,
Germany, France and UK produced about 80% of motor vehicles through the 1980s.

to 1990s; Korea
became a capacity producer. In 2004, Korea became No. 5 passing France.

to 2000s; China puffed-up
its production drastically, and 2009 became the world largest producing
country.

to 2013; The share of China
(25.4%), Korea, India, Brazil and Mexico rose to 43%, while the share of USA
(12.7%), Japan, Germany, France and UK fell to 34%.

Most sold cars in the world

o   Toyota Carola – nearly 1.020.000 copies sold (in 2009)

o   Hyundai Elantra – is closing in on Carola with
1.010.000

o   Wuling Sunshine – with about 943.000

o   Ford
Focus- with 919.000

o   Kia
Rio- with 815.000

 

TQM tools in industry

All we know TQM’s principles are pertinent
to everywhere as well as to the production of the automotive industry. Total
quality management (TQM) is a general philosophy of gradually enlightening the
operations of manufacturing. This is done through the application of severe
process analysis by every involved employer and employee. TQM is usually
applied at the front-line, tactical level, where production, clerical, and
low-level workers are deeply complicated.3

The advantages of
total quality management (TQM) include:

·        
Cost
reduction – When
functionalized regularly over time, TQM can diminish costs throughout an association,
especially in the areas of warranty, scrap, rework, and field service cost
reduction. Since these cost reductions stream straight through to bottom-line
profits without any extra costs being incurred, there can be a startling
increase in profitability.

·        
Customer
satisfaction – From the time when the company consumes
better products and services, and its interactions with customers are
relatively error-free, there should be fewer customer complaints. A higher
level of customer satisfaction may also lead to increased market portion, as
existing customers act on the company’s behalf to bring in more customers. Fewer
complaints may also unkind that the resources devoted to customer service can
be reduced.

·        
Defect
reduction – TQM has a durable importance on improving
quality within a procedure, fairly than checking quality into a process. This
not only reduces the interval needed to fix faults, but marks it less necessary
to hire a team of quality assurance personnel.

·        
Morale
– The unending and confirmed achievement of
TQM, and in certain the contribution of employees in that achievement can lead
to a perceptible improvement in employee confidence, which in turn reduces
employee turnover, and therefore shrinks the cost of hiring and training new
employees.

 

Cost reduction –  charge lessening is generally deal with the total
process in order to identify additional costs, disregard them and get a
continuous upgrading sequence. Key philosophies are below:

1.    Established a minimum cost reduction goal,

2.    Establish whether budgeting can achieve the target,

3.    Place cost reduction into the wider approach of the business,

4.    Identify the economic drivers of cost,

5.    Rearrange the labor force,

6.    Analyzing costs with the value chain,

7.    Select Cost Reduction in the Automobile Industry appropriate tools from
the operational toolbox,

8.    Manage the change process carefully,

9.    Consider subcontracting non-core activities,

10.Analyze the results diligently.

 

Customer
satisfaction

GM was
the single Detroit automaker to expand in customer gratification this year, the
ACSI study found. Foreign-made vehicles continue to have the highest driver
satisfaction, led by Toyota and Lexus with scores of 86 on ACSI’s scale of 0 to
100.

Survey

Overall, customer satisfaction with automobiles and
light vehicles slipped 1.2% to a score of 81. That comes as total car sales
fell 11.4% for the first half of the year. Here’s the list of automakers,
ranked from best to worst in customer satisfaction:4

Lexus
(Toyota): 86 %
Toyota: 
86 %
Subaru: 85%
GMC (GM): 84
%
Mercedes-Benz:
84 %
Cadillac (GM): 83 %
Hyundai: 83 %
Lincoln (Ford): 83 %

Defect reduction

In a challenge to shield its
repute, Toyota strained the ever popular “blame the victim”
operation, saying people weren’t driving right. For example, in Toyota’s status for safety (and tedious
blandness) was so inflexibly in place that when its cars underway to speed up
on their own, frightening drivers and causing 31 deaths, the auto blog Jalopnik
labelled it “beige bites back.” Then they blamed an innocent floor
mat, issuing a recall to fix floor mats in 2009. Really, Toyota? It finally had
to fess up in 2010 and issue a recall for the sticky pedal mechanism. In total,
9 million cars were recalled. The happening still troubles the corporation; in
2014, Toyota paid a $1.2 billion settlement for misleading investigators.

 

Employee morale

Subsequently, you are an influential sponsor to
whether an employee’s morale is encouraging or destructive. Segments of the surroundings
that you control that have an impact on employee morale contain such questions
as the efficiency of your managers, the superiority of their interaction with
the people you employ, and the way employees interact with each other in the
day-to-day workplace. You create the environment or culture in which these as positive factors are
valued. You reward and recognize the managers who best display the
characteristics you want to see in their interaction with employees.5

References

1.    https://www.britannica.com/topic/automotive-industry

2.    http://www.advergize.com/slogans-list/car-slogans/

3.    https://www.accountingtools.com/articles/what-are-the-benefits-of-total-quality-management-tqm.html

4.    http://clark.com/cars/the-best-and-worst-car-brands-for-customer-satisfaction-in-2017/

5.   
https://www.thebalance.com/you-can-boost-employee-morale-1918107 

Baku Engineering
University

Industrial
Engineering-2014

 

 

 

 

 

M.Hajiyev    
               F.Huseynov

 

 

 

 

 

Automotive Industry and

The Effects of TQM

 

 

 

 

 

 

Baku-2017

Contents
Introduction.. 3
Brief history of automobile. 3
Slogans of the legendary cars. 4
Selling information.. 4
Most sold cars in the world.. 6
TQM tools in industry. 6
Customer satisfaction.. 8
Survey. 8
Defect reduction.. 9
Employee morale. 9
References. 10
 

 

 

Introduction

An automotive industry is a crucial
for all widespread array of organizations and companies convoluted in also the design, manufacturing, marketing, development,  and selling of motor vehicles, most of them are
called automakers. It is one of the world’s most important economic sectors by its
distinct revenue. The automotive
industry does not consist of industries committed to motor fuel filling stations and  the maintenance
of automobiles following delivery to the end-user, such as automobile repair shops .

Brief history of
automobile

In
1808 François Isaac de Rivaz designed the first car powered by
an internal combustion engine fueled by hydrogen.1

Ø  1769:
J. Watt invented an interchanging steam engine with a condenser.

Ø  1816:
R. Stirling invented a hot air engine (Stirling engine) which
utilizes a reheat energy.

Ø  1839:
J. Ericsson developed numerous hot air engines (Ericsson engine) in
these days.

Ø  1876:
N. Otto settled a stimulus ignition engine (gasoline engine).

Ø  1883:
C. Laval developed a steam turbine.

Ø  1892:
R. Diesel invented the principle of a compression ignition engine (Diesel
engine).

Ø  1930:
F. Whittle invented a gas turbine for
an airplane.

Ø  1944:
A practical rocket engine is
developed in Germany.

Ø  1952:
F. Bacon invented a central fuel cell.

In 19th , Steam powered
vehicles, Brakes, Multi speed transmissions, Better steering
efforts help to improvements in railway locomotives.

Slogans of the legendary cars

If
you’re observing for an assembly of car slogans from a great number of
auto-mobile manufacturers, you’ve landed on the right page.2

– The new slogan for the latest
campaign is ‘Designed For Driving Pleasure.’ BMW

– The slogan for the brand is “the
best or nothing” (Mercedes)

– ”We are the competition.” – Ferrari

– ”The pursuit of perfection.” –
Lexus

– “Grace…space…pace.” – Jaguar

– 
There is no substitute. – Porsche

–  
“Moving
Forward,” – Toyota

– 
“Go Further.” – Ford

– “New thinking, new possibilities” – Hyundai

 

Selling information

Over the entire
world, there were about 806 million light trucks and cars on the road in 2016,
consuming over 980 billion litres (980,000,000 m3) of diesel and gasoline
fuel yearly. For many developed economies an automobile is a primary type of
transportation. The Detroit branch of Boston Consulting Group predicts
that, by 2018, one-third of world demand will be in the
four BRIC markets (Brazil, Russia, India and China). For the time
being, in the developed countries, the automotive industry has decelerated
down. It can also be anticipated that this trend will carry on, especially as
the younger generations of people (in highly urbanized countries) no longer
want to own a car anymore, and prefer the other modes of transport. Other possibly
dominant automotive markets are Indonesia and Iran.  Emerging auto markets already buy more cars
than conventional markets. According to the report of a J.D. Power study, evolving
markets accounted for 51 percent of the global light-vehicle trades
in 2016. The revision, completed in 2015 expected that trend to accelerate. Conversely,
more latest reports (2016) confirmed the contradictory; specifically, that the
automotive industry was reducing down even in BRIC republics. In the United
States, vehicle sales peaked in 2015, at 17.4 million pieces.

 

to 1950; USA had dominantly
formed further than 80% of motor vehicles.

to 1950s; UK,
Germany and France restarted production.

to 1960s; Japan
started fabrication and increased dimensions through the 1980s. US, Japan,
Germany, France and UK produced about 80% of motor vehicles through the 1980s.

to 1990s; Korea
became a capacity producer. In 2004, Korea became No. 5 passing France.

to 2000s; China puffed-up
its production drastically, and 2009 became the world largest producing
country.

to 2013; The share of China
(25.4%), Korea, India, Brazil and Mexico rose to 43%, while the share of USA
(12.7%), Japan, Germany, France and UK fell to 34%.

Most sold cars in the world

o   Toyota Carola – nearly 1.020.000 copies sold (in 2009)

o   Hyundai Elantra – is closing in on Carola with
1.010.000

o   Wuling Sunshine – with about 943.000

o   Ford
Focus- with 919.000

o   Kia
Rio- with 815.000

 

TQM tools in industry

All we know TQM’s principles are pertinent
to everywhere as well as to the production of the automotive industry. Total
quality management (TQM) is a general philosophy of gradually enlightening the
operations of manufacturing. This is done through the application of severe
process analysis by every involved employer and employee. TQM is usually
applied at the front-line, tactical level, where production, clerical, and
low-level workers are deeply complicated.3

The advantages of
total quality management (TQM) include:

·        
Cost
reduction – When
functionalized regularly over time, TQM can diminish costs throughout an association,
especially in the areas of warranty, scrap, rework, and field service cost
reduction. Since these cost reductions stream straight through to bottom-line
profits without any extra costs being incurred, there can be a startling
increase in profitability.

·        
Customer
satisfaction – From the time when the company consumes
better products and services, and its interactions with customers are
relatively error-free, there should be fewer customer complaints. A higher
level of customer satisfaction may also lead to increased market portion, as
existing customers act on the company’s behalf to bring in more customers. Fewer
complaints may also unkind that the resources devoted to customer service can
be reduced.

·        
Defect
reduction – TQM has a durable importance on improving
quality within a procedure, fairly than checking quality into a process. This
not only reduces the interval needed to fix faults, but marks it less necessary
to hire a team of quality assurance personnel.

·        
Morale
– The unending and confirmed achievement of
TQM, and in certain the contribution of employees in that achievement can lead
to a perceptible improvement in employee confidence, which in turn reduces
employee turnover, and therefore shrinks the cost of hiring and training new
employees.

 

Cost reduction –  charge lessening is generally deal with the total
process in order to identify additional costs, disregard them and get a
continuous upgrading sequence. Key philosophies are below:

1.    Established a minimum cost reduction goal,

2.    Establish whether budgeting can achieve the target,

3.    Place cost reduction into the wider approach of the business,

4.    Identify the economic drivers of cost,

5.    Rearrange the labor force,

6.    Analyzing costs with the value chain,

7.    Select Cost Reduction in the Automobile Industry appropriate tools from
the operational toolbox,

8.    Manage the change process carefully,

9.    Consider subcontracting non-core activities,

10.Analyze the results diligently.

 

Customer
satisfaction

GM was
the single Detroit automaker to expand in customer gratification this year, the
ACSI study found. Foreign-made vehicles continue to have the highest driver
satisfaction, led by Toyota and Lexus with scores of 86 on ACSI’s scale of 0 to
100.

Survey

Overall, customer satisfaction with automobiles and
light vehicles slipped 1.2% to a score of 81. That comes as total car sales
fell 11.4% for the first half of the year. Here’s the list of automakers,
ranked from best to worst in customer satisfaction:4

Lexus
(Toyota): 86 %
Toyota: 
86 %
Subaru: 85%
GMC (GM): 84
%
Mercedes-Benz:
84 %
Cadillac (GM): 83 %
Hyundai: 83 %
Lincoln (Ford): 83 %

Defect reduction

In a challenge to shield its
repute, Toyota strained the ever popular “blame the victim”
operation, saying people weren’t driving right. For example, in Toyota’s status for safety (and tedious
blandness) was so inflexibly in place that when its cars underway to speed up
on their own, frightening drivers and causing 31 deaths, the auto blog Jalopnik
labelled it “beige bites back.” Then they blamed an innocent floor
mat, issuing a recall to fix floor mats in 2009. Really, Toyota? It finally had
to fess up in 2010 and issue a recall for the sticky pedal mechanism. In total,
9 million cars were recalled. The happening still troubles the corporation; in
2014, Toyota paid a $1.2 billion settlement for misleading investigators.

 

Employee morale

Subsequently, you are an influential sponsor to
whether an employee’s morale is encouraging or destructive. Segments of the surroundings
that you control that have an impact on employee morale contain such questions
as the efficiency of your managers, the superiority of their interaction with
the people you employ, and the way employees interact with each other in the
day-to-day workplace. You create the environment or culture in which these as positive factors are
valued. You reward and recognize the managers who best display the
characteristics you want to see in their interaction with employees.5

References

1.    https://www.britannica.com/topic/automotive-industry

2.    http://www.advergize.com/slogans-list/car-slogans/

3.    https://www.accountingtools.com/articles/what-are-the-benefits-of-total-quality-management-tqm.html

4.    http://clark.com/cars/the-best-and-worst-car-brands-for-customer-satisfaction-in-2017/

5.   
https://www.thebalance.com/you-can-boost-employee-morale-1918107

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