A

PROJECT PROPOSAL
on
TOTAL QUALITY MANAGEMENT
In
DELHI METRO RAIL CORPORATION

In Partial Fulfilment of the Requirements

For the Degree Of
Master of Business Administration (M.B.A.)
In
Operations Management
From
Indira Gandhi National Open University (IGNOU)

Submitted By: Under the Guidance of:

SANDEEP GOYAL Mohd. Sajid
Enrol. No. 172000435 Academic Counsellor
Management Programme IGNOU

April,2019
INTRODUCTION

After globalization Indian markets are completely opened up to the international competition

today's powerful business strategy means gaining competitive advantages by achieving market

superiority over its competitors. In order to gain competitive advantage the company should

provide value to its customers that the competitors are unable to do so therefore the dynamic

challenges of total quality management provides strong competitive advantage to improve

product quality, increase speed of delivery of service, eliminate unproductive labour, ensures

consistency, better management practices, increases the learning curve of an organization,

delights the customers by providing total customer service and complete satisfaction which

ultimately leads towards customers business firms development with increase in its market

share.

DEFINITION OF TQM

" A system of management based on a commitment to the customer's total satisfaction

understanding and improving the organizations processes, employee involvement and data based

decision making" – MARK D.HANN

TQM can be defined as " an organization wide effort to develop systems, tools, techniques,

skills and the mindset to establish a quality assurance system that is responsive to the emerging

market needs" – B.MAHADEVAN

THE EVOLUTION OF TQM

In 1920's statistical theory began to be applied effectively to the quality control concept later in

1924 Shew Hart made the first sketch of a modern control chart. His works was later developed

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by process control .After the World War II Japan's industrial system was having a poor image of

imitation of products and having an illiterate workforce.

The Japanese recognized these problems and their values concerned with quality and continuous

improvement the total quality management become popular in 1950's as it tried to recover

Japanese economy from the spoils of World War II. During the 1980's Japans' exports into the

USA and Europe increased significantly due to its cheaper, higher quality products, compared to

the western countries.

Formation of TQM in India

In the early 1980's, confederation of Indian industries (CII) took the initiatives to set up TQM

practices in India in 1982 quality circles were introduced for first time in India. The companies

under which the quality circles were launched are Bharat Electronics Ltd, Bangalore and Bharat

Heavy Electricals Ltd, Trichy. In 1986 CII invited professor Ishikawa to India, to address Indian

Industry about quality. In 1987, a TQM division was set up the CII this division had 21

companies agreed to contribute resources to it and formed the National committee on quality"

In February 1991 an Indian company with assistance of the CII, obtained the first ISO 9000

certification in India. In 1996, the Govt. of India announced the setting up of quality council of

India and a national agency for quality certification was setup as a part of WTO

agreement.TQM:

1. Encourages a strategic approach to management at the operational level through involving

multiple departments' across functional improvement and systemic innovation processes.

2. Provides high return on investment through improved efficiency.

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3. Works equally well for service and manufacturing sectors

4. Allows organizations to take advantage of developments that enable managing operations as

cross-functional processes

5. Fits an orientation toward inter-organizational collaboration and strategic alliances

through establishing a culture of collaboration among different departments within organization.

CONCEPTS OF THE TQM PHILOSOPHY

The specific concepts that make up the philosophy of TQM are:

1. Customer Focus:

Quality is defined as meeting or exceeding customer expectations. The goal of management

should be to identity and meet the customers' needs. Therefore quality is customer driven.

Customer focus keeps the business competitive in every level of market change.

2. Continuous Improvement:

One of the powerful TQM philosophy is the focus on continuous improvement. Continuous

improvement is called kaizen by the Japanese which make the company continuously to learn

and to be problem solving. Because we can never achieve perfection we must always evaluate

our performance and take measures to improve it. The two approach that helps in continuous

improvement are PDSA cycle and benchmarking.

3. Employee Empowerment:

TQM philosophy is to empower all employees to seek out quality problems and correct them.

Today workers are empowered with decision making power to decide quality in the production
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process, their contributions are highly valued and workers suggestions to improve quality are

implemented. This employee empowerment can be made through team approach have quality

circle where a team of volunteer production employees and their supervisors who meet regularly

to solve quality problems.

4. Use of Quality Tools

For Identification of quality related issues employees should be trained with the quality tools to

identify the possible issues and to correct problems. These are often called the 'seven tools of

quality control' they are:

1. Cause and effect diagrams.

2. Flow charts.

3. Checklists

4. Control charts.

5. Scatter Diagrams.

6. Pareto Analysis

7. Histograms

5. Product Design

To Build a quality the company's product design must meet customer's expectation and quality

function deployment is a tool used to translate the preferences of the customer into specific

technical requirements, it enables us to view the relationships among the variables involved in

the design of a product, such as technical versus customer requirements.

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6. Process Management

Under TQM quality of a product comes through continuous quality process. Therefore quality at

the source is the belief that it is far better to uncover the source of quality problems and correct it

than to discard defective items after production. The new concept of quality focuses on

identifying quality problems at the source and correcting them.

7. Managing Supplier Quality

The philosophy of TQM extends the concept of quality to suppliers and ensures that they engage

in the same quality practices. If suppliers meet preset quality standards, materials do not have to

be inspected upon arrival. Today many companies have a representative residing at their

supplier's location, there by involving the supplier in every stage from product design to final

production.

PRINCIPLES OF TQM

TQM principles and philosophy is a managerial methodology therefore it is a frame work of

principles as well as a systems approach. The principles of TQM are:

1. Quality Integration

"Quality means quality of work, quality of service, quality of information, quality of process,

quality of divisions, quality of people including workers, engineers, managers and executives,

quality of objectives, briefly speaking it is Total Quality, or companywide quality". The above

definition show quality is integrated with various activities.

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2. Quality First

"Deming gives a strong statement saying "Productivity increases with improvement of quality"

therefore giving primary importance to quality the firm or company gain competitive advantage,

increase market share and achieves its sales target ensuring customer confidence.

3. Customer Orientation:

Customers are most important asset of the organization customers are both outside customers

who are clientele and within the organization they are employees therefore Dr. Ishikawa

proposes that manufacturers must study the requirements of consumers and to consider their

opinions when they design and develop a product.

4. Prevention rather than Inspection:

One of the core principle of TQM is a do it right the first time. So modern approach argues to

stop problems at the beginning rather than at ending their Deming says ' inspection is too late,

ineffective and costly'. The TQM approach is to do it right the first time rather than to react after

the problem happened, problem prevention can be assured by controlling are process discovering

problems, identifying their root causes then improving the process in order to avoid the

problems.

5. Factual Based Decisions:

Following steps for conducting factual based decision in order to ensure that any analysis has
the right basis for decision making:

1. Clearly recognizing facts, then

2. Expressing those facts with accurate data and finally,

3. Utilizing statistical methods to analyze the data.

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ABOUT DELHI METRO RAIL CORPORATION (DMRC)

The Delhi Metro Rail Corporation (DMRC) is headquartered in New Delhi, India. It was

registered in the year 1995 under the Companies Act 1956 with equal equity participation from

the Government of the National Capital Territory of Delhi (GNCTD) and the Central

Government. The organization is implementing the construction and operation of a world– class

Mass Rapid Transport System (MRTS), since its inception. As per the Master Plan of Delhi

2021, 421 km of metro network has to be constructed by the year 2021. This construction is

being done in Phases. So far construction of network in two phases has been completed and 213

km operationalized. Presently construction of the third phase viz Phase-III is underway.

In the first phase of construction, which began in 1998, a network of 65 km was constructed by

2005. This increased to 125 km, in Phase-II, totaling to 190 km by 2011. The current

construction phase of Phase-III, will add additional 159 KM of metro length. The network has

crossed the boundaries of Delhi to reach Noida and Ghaziabad in the state of Uttar Pradesh and

Gurgaon and Faridabad in the state of Haryana. DMRC today has 216 train sets of four, six and

eight coaches. More than a hundred trains of six coach configuration and over 60 trains of eight

coach configuration are currently operational.

Having constructed a massive network in record time, DMRC today stands out as a shining

example of how a mammoth technically complex infrastructure project can be completed before

time and within budgeted cost by a Government agency. DMRC is committed to building a work

culture that nurtures and grooms the progressive workforce through its abiding commitment to

employee’s engagement. All employees operate in a work environment which has been

recognized for the quality of its safety and health standards. Employee engagement with positive

work environment is one of the primary motives of HR policies of DMRC. It endeavors to

provide best benefits to employees to provide them social and financial security. Some of the

benefits offered to employees in general are life insurance, health care, Disability and invalidity
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coverage. Retirement provision, Staff Quarters Group superannuation scheme Housing/ Vehicle/

Multi-Purpose/Festival/ laptop Advances etc. As enshrined in the value system of DMRC, the

organization believes in continual investment in talent development of the employees. This is

essential to increasing the overall engagement and productivity at large, which in turn, drives the

company's culture. DMRC has its own Training Institute which acts as the forum for capacity

building.

DMRC has its own training institute which acts as a well-informed forum for capacity building.

The training institute imparts not only knowledge but also the skills through various modes like

simulators, attitude and soft skills training etc. Fresh recruits who are selected through

recruitment process are given initial training so as to prepare them for their job profiles. Time to

time refresher training is also imparted to existing employees to enhance their knowledge which

keeps them abreast with latest updates in the technology, systems or processes. Training on

shouldering higher responsibilities during promotion and reshuffling is also provided. DMRC

develops the staff capabilities and competence of not only DMRC employees but also employees

from other metros systems. DMRC environmental team has been conducting a range of

environmental education and awareness-raising activities for employees in order to raise the

standard of the organization’s environmental conservation activities.

While this aspect has been dealt with in great detail earlier, suffice would it be to say that

tracking the impact of our activities is inbuilt in DMRC. Impact of policy is employee eccentric.

There are various mechanisms to keep employee motivated and engaged for implementation of

best operating practices. The employees are informed of latest developments, imparted trainings

regularly and are constantly supervised to ensure their behaviour and output are in sync with

operational policies.

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STATEMENT OF THE PROBLEM

The Indian Transportation system has been immensely pressurized by the hasty growth

in the urban population, the present population count of Delhi being 20,438,946. The

Escalating demand for commutation has exceeded the restricted supply of transport

Infrastructure and services as the number of foot fall keeps on increasing leaving the

public transportation amenities low maintained and insufficient to cater the demands of

travelling. Over a period of time, considerable efforts have been made to enhance and

transform public transport more attractive for commuters in urban areas. Public transit

is generally offered as a fundamental level of service to the commuters.

The application of service quality dimensions in public transport is therefore essential

to provide a significant breakthrough for many troubles like, traffic congestion on

roads, road accidents, late night travelling inconvenience and varied forms of

pollutions, as commuters would switch to public transport instead of their self owned.

This study is focused to explore the commuter’s perceptions and expectations about the

service quality of Delhi Metro Rail Corporation. A customized SERVQUAL instrument

consisting the five dimensions of service quality Namely, empathy, assurance,

tangibility, responsiveness and Assurance were employed to measure the passengers”

perceptions about the service quality of DMRC. The study also investigates the relation

between service quality dimensions, and customer satisfaction by applying correlation

and regression analysis based on needs and expectations articulated by the commuters

of DMRC.

The statement of the problem for the present study is “TOTAL QUALITY MANAGEMENT IN

DELHI METRO RAIL CORPORATION (DMRC)”

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OBJECTIVES OF THE STUDY

The primary objective of this study is to measure the service quality of Delhi Metro

DMRC in NCR India

• To measure the service quality of DMRC with the help of SERVQUAL developed

by (Parasuraman et al., 1988).

• To find out the expectations of commuters from services of DMRC.

• To highlight the implications of the research to the DMRC.

RATIONALE OF THE STUDY

The Transit service quality has remarkably influenced the commuter’s opinions and

choices. The best experience of the passengers would tempt them to repeatedly use the

services, while problems encountered by them would discourage them to use transit

services the next time. Therefore, persistent improvements in service quality are

important for keeping the regular commuters happy and satisfied and for attracting new

ones. Furthermore, a service delivery inherited with enhanced quality assures a healthy

competition amongst the transit agencies, thus, the passengers avail benefits of superior

services.

RESEARCH METHODOLOGY

The Research Design followed in the initial stages of the study was exploratory

research design wherein the problem was identified and the questionnaire was

developed, from henceforth descriptive research design was followed to Measure the

Service Quality of Delhi Metro.

The SERVQUAL model focuses on the difficulty in ensuring a high quality of service

for all customers in all situations .The desired quality of service is different from the
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perceived quality because it does not represent the daily experiences of the users, but

rather what they desire, hope for or expect from their public transport system. This is

why it is important to study the difference between the perceptions and expectation s of

commuters of DMRC, further.

Though a lot of work has been done on the SERVQUAL model but no work has been

done on measuring the service quality on Delhi Metro.

Research Method: Descriptive Research

Sample Size: 50-60

Data collection:

Primary Data:

Data that has been collected from first-hand-experience is known as primary data.

Primary data has not been published yet and is more reliable, authentic and objective.

It cannot be changed or altered; therefore its validity is greater than secondary data.

Questionnaire will be formulated & administered to the samples of managers & assistant

managers level. Interviewing HR professionals of talent management division of Delhi metro

rail corporation

Secondary Data:

Data collected from a source that has already been published in any form is called as

secondary data. Secondary data collected from Delhi metro rail corporation records and internal

web portals. Also from Magazines, Journals, Newspaper etc.

Data Analysis: In this proposed study, various statistical tool and techniques will be used

according to the requirement of the study. Percentage analysis will be used for analyzing the

primary data. Data will be analyzed with a view to arriving at valid conclusions.
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SCOPE OF THE STUDY

Though the topic of the study is related to Total Quality Management, The study aimed at

measuring the service quality of DMRC as service quality is an inherent concept of TQM. So the

scope of the study was to measure the service quality on the model developed by Parsuraman et

al. (1988) and it was confined to the five dimensional model developed by them.

LIMITATIONS OF THE STUDY

Despite the fact that no study can be perfect there are some or the other limitation which

are always there in a study. Following are the limitations of the study:

1. The study was only confined to NCR India.

2. The study shall be limited to only Delhi metro rail corporation.

3. The study was confined to only the commuters of Delhi Metro.

4. Other modes of transports were not taken into consideration for the study

5. Employees are not allowed to provide sensitive and depth information

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CHAPTERIZATION

• CHAPTER 1: INTRODUCTION

• CHAPTER 2: REVIEW OF RELATED LITERATURE

• CHAPTER 3: INTRODUCTION TO DELHI METRO RAIL CORPORATION

• CHAPTER 4: THE DIMENSIONS OF SERVICE QUALITY

• CHAPTER 5: DEMOGRAPHICS AND DELHI METRO RAIL CORPORATION

• CHAPTER 6: FACTOR ANALYSIS AND SERVICE QUALITY IN DELHI METRO RAIL

CORPORATION

• CHAPTER 7: CONCLUSION AND RECOMMENDATION

• BIBLIOGRAPHY

• QUESTIONNAIRE

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BIBLIOGRAPHY

• Delhi Metro Rail Corporation Limited, Operation Manual. (1999)

• Delhi Metro Rail Corporation Limited General Rule (2005) and General rule 2013.

• Delhi Metro Rail Corporation Limited, Apex Manual, ISO9001:2015 Quality

Management.

• Sustainability Report 2014-2015 and 2015-16 of Delhi Metro Rail Corporation Limited.

• Delhi Metro Rail Corporation Limited, Signal &Telecom & Rolling Stock Manual (2005).

• Arora, K. (2010), ‘Total quality management’, India, 67-93.

• Awasthi, A.(2010), ‘Kahani delhi metro ki (Hindi)’, 1st Edition, India, 65-70.

• Babakus, E. and Boller, G.W. (1992), ‘An empirical assessment of the SERVQUAL

scale’, Journal of Business Research, , United States, 253-68.

• Besterfield, D. (2012), ‘Quality Improvement’, 9th Edition, United States , 91-113.

• Besterfield, H. , Besterfield, C. , Besterfield, G. and Besterfield, M. (2002), ‘Total

quality management’ , 3rd Edition, United States, 197-213.

• David, G. and Davis, S. (2012), ‘Quality management for organizational excellence,

• Introduction to total quality’, 7th Edition, United States, 115-127.

• Bharat. (2013), ‘Ministry of information’, Government of India broadcasting, India

12-23.

• http://www.delhimetrorail.com/otherdocuments/APNAward.pdf

• www.delhimetrorail.com/otherdocuments/SustainabilityReport2014-15.pdf

• www.delhimetrorail.com/otherdocuments/ssmotion

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