Total quality management (TQM) ensures that every staff within an organization commits to sustaining high standard work taking into operational considerations of the organization. This report provides a brief of the total quality management in Goodyear Tyre highlighting successful application of TQM within the company. Problems within the organization are also assessed evaluating TQM strategies to mitigate them. Finally, the report provides recommendations to sustain TQM that will help the company to maximize profit.
Total quality management in Goodyear Tyre has enabled the organization to improve approximately 12% advancing to reduction in energy rates by 15% in upcoming 5 years. Advanced global data management system has been incorporated alongside TQM to track water and energy usage in real time (Goodyear.com 2017).
Figure 1: Global energy use
(Source: Goodyear.com 2017)
Figure 2: Global water use
(Source: Goodyear.com 2017)
Figure 3: Global GHG emissions
(Source: Goodyear.com 2017)
Incorporating energy efficient and eco friendly programs, Goodyear Tyre has successfully increased its revenue to US$ 18.138 billion since 2014.
Figure 4: TQM factors
(Source: Influenced by the idea of Shah 2013)
Improvement of each area of Goodyear Tyre is highlighted by increased non-tire products, which includes industrial hose, conveyor belts, airsprings, power transmission, medical application synthetic rubbers etc. that helped the company to excel in competitive market. Employees of According to Ross (1999), Goodyear Tyre carry a mission statement of ‘credit-card’ size that focuses in improvement of services and products for meeting customer needs. Investors and employees through this mission statement enabled the business to sustain prosperity in automotive and commercial products.
Goodyear designs its tyres according to customer needs. Goodyear Eagle 360 is designed for ensuring safety and enhanced driving experience for cars and its intelliGrip design provides added traction on road to prevent skidding during rainy season. Pricing of these tyres are also economical keeping in mind budget of customers (Oakland, 2014).
Dale (2015) stated that Goodyear focuses on preventing poor quality products rather eliminating defects. Due to enhanced checking and quality control team, Goodyear has increased its logistics, research and development along with procurement process aligning with objectives to provide defect free products.
Goodyear Tyre faced a serious issue in revenue and suffered loss during 2010s. However, TQM enabled the firm to adopt a policy that resulted to maximize profit. Oakland (2014) commented that the manufacturing units of tyre were based in USA with high labor cost. Goodyear relocated its manufacturing units overseas to countries having low labor and manufacturing cost. Thus, it saved cost of manufacturing and invested the money in development of business. Goodyear Tyre transferred approximately 50% of its global capacity to countries having low cost by 2012 (Goodyear.com 2017).
TQM enabled Goodyear Tyre to overcome challenges of globalization and develop its progress through continuous growth that enabled the organization to provide customer satisfaction. Preventing poor quality products through thorough inspection besides the strategy to outsource its manufacturing units highlights the TQM competency of Goodyear Tyre.
Figure 5: Recommendations
(Source: Created by the author)
It is recommended to Goodyear Tyre to track TQM records of responsiveness to environment applied by TQM to ease its implementation. Management audits should be carried out precisely and accurately to create a database from where important information can be pooled during need.
Employees should be motivated by HR and relevant managers on a regular basis to enhance innovation within the organization.
Dale, B., 2015. Total quality management. John Wiley & Sons, Ltd.
Goodyear.com, 2017, Goodyear Tyre [online], Available at: https://www.goodyear.com/en-US/international?expand=in [Accessed 26 Mar 2017]
Oakland, J.S., 2014. Total quality management and operational excellence: text with cases. Routledge.
Ross, J.E. and Perry, S., 1999. Total quality management: Text, cases, and readings. CRC Press.
Shah, M.J., 2013. Globalisation impact of total quality management (TQM) staretgy in the Indian banking sector, International Journal of Transformations in Business Management, 3(4), pp. 1-5
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