lnu.sePublications
Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
The Impact of TQM and Outsourcing on Quality and Costs for OEMs in the Automotive Industry
Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics.
Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics.
Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics.
2008 (English)Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

Background

The OEMs are facing fundamental changes. The importance of the quality of products in the automotive industry has changed to being exclusively dependent on the demand and sense of the customer. The OEMs have to react quickly on trends to fulfill the customer demands and be technically innovative. These innovations and intensity of their implication lead to a high cost pressure for the OEMs again. Therefore, the OEMs need to work together with their suppliers. Production strategies like TQM or outsourcing are known as the key to success. Although cost and quality management themselves are quite well-investigated in literature, and the use of both TQM and outsourcing are widely implemented in the OEMs’ strategies to improve quality and reduce costs, studies about the combination of TQM and outsourcing and their impact on quality and costs cannot be found. The wide spread opinion of managers is that quality and costs cannot support each other.

Purpose

In our Master Thesis we wanted to find out how quality and costs are related to each other to fulfill the given goals. The purpose was to examine the impact of the two common methods, TQM and outsourcing, on costs and quality for the OEMs. We explored how the concepts interact and support costs and quality. Furthermore, the analysis states how these approaches are related within a supply chain and how automobile manufacturers can use both approaches to assure low costs and high quality at the same time.

Method

Our Master Thesis is a theoretical study based on a qualitative research method. We used scientific articles and literature for the theory and combined these in the analysis with the data and results from previous case studies as the empiric value. We combined this through the deductive approach. We not only used a positivistic view, but we also used a hermeneutic view due to the fact that analysis and conclusion incorporate both scientific articles and also personal interpretations.

Results and Conclusion

We concluded that precisely these two methods, outsourcing and TQM, supplement each other and fit together very well to assure the efficiency of the automobile OEMs with high quality and low costs at the same time. This is due to the fact that outsourcing is often used in companies and reduces the costs of OEMs; and TQM alone leads to quality improvements. Not only do they work well separately in companies, but outsourcing lays ideal foundations for an efficient TQM implementation.

Suggestions on Continued Research

We could not find any studies where these two approaches were researched in combination. Thus, one good future research could be to go on with empirical analyses about this theme in the automotive industry, for example by conducting surveys or interviews with OEMs. A case study about the combination of TQM and outsourcing could verify our mostly from the theory concluded results of the interrelation. A further deviation on the research could be that suppliers, instead of OEMs, could be the focus of the study.

Place, publisher, year, edition, pages
2008. , p. 106
Keywords [en]
Quality, Quality Management; Costs, Cost Management; Total Quality Management (TQM), TQM in Automotive/Automobile Industry; Outsourcing, Outsourcing in Automotive/Automobile Industry
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:vxu:diva-2081OAI: oai:DiVA.org:vxu-2081DiVA, id: diva2:205973
Uppsok
samhälle/juridik
Supervisors
Examiners
Available from: 2008-06-03 Created: 2008-06-03 Last updated: 2010-03-10Bibliographically approved

Open Access in DiVA

fulltext(2622 kB)2941 downloads
File information
File name FULLTEXT01.pdfFile size 2622 kBChecksum MD5
fbfdc193e5894c596b70285fd6ee99dbbd35ccdc85c4e2c4a41de06ccf162a9e40a2492e
Type fulltextMimetype application/pdf

By organisation
School of Management and Economics
Economics and Business

Search outside of DiVA

GoogleGoogle Scholar
Total: 2941 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 5011 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf