ERP Assignment

Module : Total Quality Management (Volkswagen)

1. Case Study : Total Quality Management Of VOLKSWAGEN
Definition of Quality by Volkswagen
TQM capitalizes on the involvement of management, workforce, suppliers, and even
customers, in order to meet or exceed customer expectations. Quality in business,
engineering and manufacturing has a pragmatic interpretation as the non-inferiority or
superiority of something. Quality is a perceptual, conditional and some what subjective
attribute and may be understood differently by different people. Consumers may focuson the
specification quality of a product/service, or how it compares to competitors in the market
place.
In manufacturing, a measure of excellence or a state of being free from defects,
deficiencies, and significant variations, brought about by the strict and consistent adherence
to measurable and verifiable standards to achieve uniformity of output that satisfies specific
customer or user requirements.
Volkswagen defined quality as The corner stone for success and the satisfaction of the
customers. They relate the word quality with the stage on which customer is satisfied and
they say that if the customers are fully satisfied with their products then it is quality. They
also say that consistencyin their products defines the quality.

Quality Assurance Department

In order to build quality into the culture a quality council is established to provide overall direction,
it is the driver for the TQM engine.
In typical organizations, the council is composed of the CEO, the senior managers of the functional
areas such as design, marketing, finance, production and quality and a coordinator or consultant.
In Volkswagen the duties of the quality department are to:
1)Develop, with input from all personal, the core values, vision statement, missionstatement, and
quality policy statement.
2)Develop the strategic long term plan with goals and the annual quality improvement program with
objectives.
3)Determine and continually monitor the cost of the poor quality.
4)Continually determine those projects that improve the process, particularly those that affect
external and internal customer satisfaction.

5)Establish multi functional project and departmental or work group teams and monitor their
progress.

Hierarchy of Quality Assurance Department

Responsibilities:

The Quality Manager is responsible for the administration of the Quality Plan and has the
authority to manage all work affecting quality. The Quality Manager will provide leadership
for the development, implementation, communication and maintenance of quality system
policies and procedures for the Company according to the approved quality system. A
primary goal is to achieve a high degree of joint ownership of quality and compliance
strategies with all of the major operational stake holders in the Company while addressing
regulatory requirements in an effective, timely and responsible manner.Quality Manager
Market is the head of Quality Assurance Department. The responsibility of quality manager
is to monitor overall performance of the quality department. He insures that every task
within the quality department is going in the right direction. He calls upon the meeting of
whole team on weekly or monthly basis.

The responsibilities of Quality Assurance Coordinator are to assigns, reviews, and the work
of professional, technical,and clerical staff. Interprets and implements quality assurance
standards. To monitor unusual occurrences, report follow-up procedures, and report monthly
and year-to-datecomparisons. To assist the director with records form revisions and
procedures. Reviews quality assurance standards, studies existing policies and procedures,
and interviews personnel and customers to evaluate effectiveness of quality assurance
program. Responsible for achieving a satisfactory working environment between other
departments performing quality-assurance studies. Another major responsibility of her is to

ensure that the product quality should remain consistent and there should be no compromise
on the quality of the product. That is why there is no compromise on cost for this
department. As she quoted that they;high cost for high quality.

Under the QA Coordinator there are three lab analysts. The responsibility is to check the
quality of minerals by applying different international methods on them in the laboratory.
Before sending the product into market the lab analysts check the eminence and then
illuminate it. Miss Iram Shaheen told us that to measure the analytical skills of analysts,
some blind samples came from the main laboratory which is in Switzerland. The analysts
have to test these samples and then conclude their results. On the basis of these results the
analysts are graded, and from the last five years these analysts are getting A grade in this
performance test.

Quality Circle:
There are three steps in quality circle
1)KPI (Key Performance Indicator)
2)PPI (Process Performance Indicator)
3)Drivers

A key performance indicator (KPI) is a specific measure of an organization's performance

in some area of its business. It is a very general concept, with different implementations
depending on the type of business and goals of the organization. In Nestle upper level
managers or team leaders are using KPIs. They made the policies, rules and regulations for
assigning the tasks to employees and keeping them in right direction. These are basically the
tasks of the upper level management. For example; machine checking,training of employees,
monitoring, setting sales targets E.T.C.

Process Performance Indicator is used by the plant managers. Plant managers direct and
coordinate plant operations within company policies and procedures. Maintain a cleanand
safe plant. Establish and direct plant policies and procedures. Responsible for plant
production goals. Establish and maintain a positive community relationship. Conduc
temployee performance reviews. Plant managers used PPIs to ensure that there should be no
gap in manufacturing process and everything is going smoothly. They direct theworkers to
different tasks. Plant manager calls upon the meeting with the upper level management and
discuss the current issues.

Drivers are used by workers. Workers are actually implementing the rules which are
designed by the upper level management. If there is any issue during the manufacturing
process, the workers immediately report to the plant manager. Plant manager checks the
level of the issue, if the issue is out of his capacity; he schedules a meeting with the upper
level management.

Types of Teams:
1)Process improvement team
2)Cross functional team
3)Self managed team In Nestle they are working in two types of team.

In process improvement team the members represents the each operation of the process.
Usually the scope of the teams activity is limited to the work unit. We can take example of
the returnable bottles. The quality department is responsible for the intense cleaning of these
bottles. So this is the issue of quality department and they have to do this work within their
team. This issue is not in relevance to other departments.

In Cross Functional Team there are 6 to 10 members will represent a no. of different
functional areas such as Engineering, Production etc. In Nestle, they are also using thecross
functional teams but it depends upon the nature of the product. We can takeexample of a
project of Nestle in which they have extract a limited water from well to make their
environment safe. In this project they were using cross functional teams whichis formed by
different department members.

Training in Nestle:

They are giving induction training to the new recruits. In this training basic orientation is
given to employees. The trainers told them the rules & policies of the organization. The
trainers also observe the skills, attendance, capabilities of the employees.

For other employees Nestle is giving them on the job training as well as give them the
opportunity for training by a third party. As Miss Iram Shaheen the QA Coordinator recently
got training from a third party in Lahore.

There are different levels for employees; the lowest level is white belt, then going upwards
its yellow, green, black & master black belt.

2. Consulting Company : ORACLE

Oracle Corporation is an American multinational computer technology corporation, headquartered
in Redwood Shores, California.
The company also develops and builds tools for database development and systems of middle-tier
software, enterprise resource planning (ERP) software, customer relationship management (CRM)
software and supply chain management (SCM) software.

Founded : June 16, 1977; 39 years ago

Founders : Larry Ellison
Bob Miner
Ed Oates

Headquarters : Redwood Shores, Redwood City, California, United States

Key people :
Larry Ellison
(Executive Chairman & CTO)
Jeff Henley
(Vice Chairman)
Safra Catz
(CEO)
Mark Hurd
(CEO)

Revenue : 37.04 billion

Number of employees : 136,262 (2016)

List of SAP products

Business Solutions
SAP Incentive and Commission Management (ICM)
SAP Knowledge Warehouse (KW)
SAP Manufacturing
SAP Master Data Management (MDM)
SAP Rapid Deployment Solutions (RDS)
SAP Service and Asset Management
SAP Supply Network Collaboration (SNC)
SAP Solutions for mobile business
SAP Solution Composer
SAP Strategic Enterprise Management (SEM)
SAP Test Data Migration Server (TDMS)
SAP Training and Event Management (TEM)
SAP NetWeaver Application Server (Web AS)
SAP xApps
SAP Supply Chain Performance Management (SCPM)
SAP Supply Chain Management (SCM)

 SAP Sustainability Performance Management (SUPM)

Industry Solutions
SAP for Retail
SAP for Utilities (ISU)
SAP for Public Sector (IS PSCD)
SAP for Oil & Gas (IS Oil & Gas)
SAP for Media (ISM)
SAP for Telecommunications (IST)
SAP for Healthcare (ISH)
SAP Banking (SAP Banking)
SAP for Insurance (SAP for Insurance)
SAP Financial Services Network (FSN)
SAP Shipping Services Network (SSN)
Engineering Construction & Operations (EC&O)
SAP IS Airlines & Defense

Solutions for Small and Midsize Enterprises

SAP Anywhere
SAP Business One (6.2, 6.5, 2004, 2005, 2007, 8.8x, 9.0)
SAP Business ByDesign

Platforms and frameworks

SAP Enterprise Services Architecture
SAP NetWeaver Platform
SAP NetWeaver Portal (formerly SAP Enterprise Portal)
SAP NetWeaver BI (formerly SAP NetWeaver BW- "BW" is still used to describe the
underlying data warehouse area and accelerator components)
SAP NetWeaver Visual Composer
SAP Auto-ID Infrastructure
SAP Composite Application Framework
SAP NetWeaver Development Infrastructure
SAP NetWeaver Identity Management
SAP NetWeaver Single Sign-On
SAP Business Connector (deprecated/removed from product range)

 SAP HANA

Legacy Platforms
SAP R/2
SAP R/3

List of companies that use SAP in INDIA

Automotive
Apollo Tyres , India
Hero India-Hero MotoCorp Ltd.
Mahindra & Mahindra Ltd., India
MRF, India
Tata Motors, India
Bajat Auto, India
TVS Motors, India
Ford ,India
Eicher,India
Honda Two Wheelers, India
Maruti , India
Hindustan Motors Ltd., India
Hero Cycles Ltd., India
Force Motors Ltd., India
Bajaj Tempo, India

Oil and Gas

ONGC India
Indian Oil, India
BPCL,India

Consumer Products
Aravind Mills, India
Videocon, India
Onida, India
Sony, India

Coca cola, India

Pepsi, India
Britania Industries, India
Samsung, India
VOLTAS, India

IT (SOFTWARE) COMPANIES
TCS
IBM India
Accenture India
HCL Technologies Ltd.
NIIT Limited
Hewlett-Packard (HP) India
L&T Infotech
Mahindra-Satyam
Wipro Infotech
CSC India
Deloitte
KPIT
SAPLABS India
Intel Technology India Pvt. Ltd.
Microsoft Corporation India Pvt. Ltd.

SAP Worldwide Office Directory

America

Europe

Middle East & Africa

Asia Pacific

Argentina

Albania

Bahrain

Australia

Brazil

Austria

Egypt

China

Canada

Belgium

Israel

Hong Kong, SAR

Chile

Bosnia and
Herzegovina

Kenya

India

Kuwait

Indonesia

Mauritius

Japan

Morocco

Korea

Namibia

Malaysia

Nigeria

New Zealand

Oman

Philippines

Pakistan

Singapore

Qatar

Taiwan

Saudi Arabia

Thailand

South Africa

Vietnam

Colombia
Costa Rica
Honduras
Mexico
Panama
Peru
Puerto Rico
USA
Venezuela

Bulgaria
Croatia
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Kazakhstan
Latvia
Lithuania
Luxembourg
Macedonia

United Arab Emirates

3. Product Vendor Details ORACLE

Quality Management with ORACLE

Oracle's Application Quality Management products provide a complete testing solution for Oracle
Database, Oracle Packaged Applications and custom Web applications.
Application Testing: Application Testing Suite's Test Management, Functional Testing, and Load
Testing capabilities ensure the quality of web-based applications and packaged Oracle applications
like Fusion, eBusiness Suite, Siebel, PeopleSoft, J.D. Edwards and Hyperion.
Test scripting has never been easier and users can create scripts using traditional record/playback
scripting as well as a keyword driven testing framework benefitting from pre-built testing content
for various applications.
Infrastructure Testing: Application Replay and Real Application Testing enable realistic,
production scale testing of the application and database infrastructure. They use real, production
workloads to generate load against applications or databases under test and do not require any script
development or maintenance. With Application Replay or Real Application Testing you can reduce
your testing time by more than 80%. They provide the most efficient, optimized and highest quality
testing for validating application and database infrastructure changes.
Test Data Management: Data Masking and Subsetting provide efficient, automated and secure
test system creation capabilities for Oracle and nonOracle databases, with out-of-the-box templates
for Oracle packaged applications.
Quality engineering
Quality assurance and control
Quality improvement
Audit management

Benefits:
Increased customer satisfaction through better product quality and enhanced comlaint management
and tracking (corrective and preventiveaction).
Increased revenues by retaining customers and strengthening customer loyalty.
Increased efficiency through improved asset utilization.

4. VOLKSWAGEN Details
Volkswagen was originally created in 1936 by the German Labour Front (Deutsche Arbeitsfront). In
the early 1930s, the German auto industry was still largely composed of luxury models, and the
average German could rarely afford anything more than a motorcycle. As a result, only one German
out of 50 owned a car. Seeking a potential new market, some car makers began independent
"peoples' car" projects the Mercedes 170H, Adler AutoBahn, Steyr 55, and Hanomag 1.3L, among
others.
In 1932, with many of the above projects still in development or early stages of production, Adolf
Hitler got involved, ordering the production of a basic vehicle capable of transporting two adults
and three children at 100 km/h (62 mph). He wanted his German citizens to have the same access to
a car as the Americans. The "People's Car" would be available to citizens of the Third Reich
through a savings plan at 990 Reichsmark ($396 in 1930s U.S. dollars)about the price of a small
motorcycle (the average income being around 32RM a week).

Founded : January 4, 1937; 79 years ago

Founder : German Labour Front (DAF)
Headquarters : Wolfsburg, Germany
Key people : Matthias Mller (CEO)
Revenue : CHF 244.985 billion (2015).
Number of employees : 610,000 (2015)