Improving Quality with reducing cost” an approach by applying TQM and Outsourcing with their combined impact on automobile OEMs

The OEMs have to react quickly on trends to fulfill the customer demands and be technically innovative as the customer taste changes frequently, also the gap between demand and supply require minimum. The Original equipment manufacturers (OEMs) are facing fundamental changes as it is utmost important and primary objective of the manufacturing industries to provide high quality and less cost products to the customers for creating the market leadership. 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. 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 and 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, outsourcing and subcontracting and their impact on quality and costs cannot be limited. The wide spread opinion of managers is that quality and costs cannot support each other but the use of TQM and Outsourcing are widely implemented in the OEMs’ strategies to improve quality and reduce costs. We wanted to find out how they are related to each other to fulfill the given goals.