tqm practices in indian organisations presentation by r
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TQM PRACTICES IN INDIAN ORGANISATIONS
Presentation byR.MUKUNDAN
Director, TEAM CONSULTANTSChennai, India
AtICQI
Karachi,PakistanOCT 26-27, 2002
India became independent in the year 1947.
1950 - 1990 Business scenario
α Industrial growth was very slow and sluggishα Insignificant market share in world marketα Thrust was towards
• Self Reliance• Protection from competition• Nationalization
1990 - Till date Business scenario
The country’s door was opened to foreign investments and the thrust was towards
α Globalizationα Competition α Privatization
Inspite of differences in the agenda among different political parties one common factor emerged.
“The progress of the country requires economic realignment.”
Crucial issues for the progress of Indian industries in the new millennium
! GLOBAL MARKET SCENARIO! TOTAL QUALITY MANAGEMENT! PRODUCT INNOVATION! HUMAN RESOURCE DEVELOPMENT! NEW MARKETING STRATEGIES
THE TOTAL QUALITYIMPERATIVE
If corporate India, whichhas produced poor productsfor 48 years, is to survive
tomorrow, a qualityrevolution is essential.
TTT
QQQ
MMM
LABOUR ATTRIBUTES : RESULTS OF SURVEY OF MANAGERSLABOUR ATTRIBUTES : RESULTS OF SURVEY OF MANAGERS Skilled Quality Cost Availability Turnover Average Grade Labour
India 4.29 2.14 2.57 3.712.80Australia 2.00 4.71 2.29 3.14
3.39Britain 2.75 4.25 2.88 3.83
3.50Philippines 3.24 4.12 4.50 3.55
4.65U.S. 2.22 5.06 3.67 3.94
3.70Switzerland 1.20 8.00 2.75 1.75
3.76Vietnam 6.82 3.30 7.00 5.80
4.08China 6.12 3.40 6.12 4.83
4.28Indonesia 6.42 4.46 6.27 4.83
4.28J 2 92 8 08 5 33 2 08
COMPARATIVE INVESTMENT CONDITIONSCOMPARATIVE INVESTMENT CONDITIONSIdeal = 10 PointsIdeal = 10 Points
Investment Factor / Category China India IndonesiaEconomic framework Conditions 8.3 6.97.5
Political Situation 7.1 6.17.7
Legal factors 4.5 5.65.2
Infrastructure availability and quality 4.0 4.26.0
Production cost comparison 6.5 7.06.8
Personnel (availability, Skills, Productivity) 4.0 5.84.6
Cultural Influences 5.5 7.57.0
f / d
Launch the TQM Crusade with aPilot Project
Choose a small, but important, problem, and wield
all your quality tools to develop the solution. And
communicate the results all over. Prototype
miracles can convert sceptics far faster than
proselytisation
QQQ
Setup Systems to SupportIndividual Initiative
Lay down stringent guidelines and checklists for
each step of every process. Even if all your people
leave tomorrow, operations must be continued by
their replacements at the same error-free levels.
Institutionalize initiative; don’t individualize it.
QQQ
Measure and Verify the Effectivenessof Improvements
Gauge the efficacy of each initiative: not just the
money saved, but also indicators like delivery
accuracy or invoice errors. Broadcast the findings,
and use them as starting points for further
improvement. If you don’t want your quality to
evaporate, evaluate it.
QQQ
Extend the TQM Drive
to Suppliers and Customers
Export your quality practices to suppliers so that
the com ponents you use don’t have to be
inspected. Use custom er tastes to determ ine your
quality standards. Rem em ber; quality m ust be
practiced on the shopfloor, in the kitchen.
Everywhere.
QQQ
Empower Workers to SolveProblems Independently
To bind your workforce to quality, give it a free
hand. They must have the power to execute the
solutions that they develop. Frontline staff
must be able to redress complaints without
running for approval to the boss. To build a
quality empire, empower
QQQ
TQM - CASE STUDIES FROM
INDIAN ORGANISATIONS
Quality As Leadership • Perfect Machine Tools
Quality As Infrastructure • Mukand
Quality As Systems • Modi Xerox
Quality As Manufacturing • Ranbaxy
Quality As After Sales Service • Thermal
Quality As Marketing • Hindustan Lever
Quality As Service • HDFC
Quality As HRD • Infosys
QUALITYQUALITY
ASAS
LEADERSHIPLEADERSHIPPerfect Machine ToolsPerfect Machine Tools
Best Practices - PMT
• Set a personal example of practicing what you preach about quality• Create the environment for innovation and personal development• Instill in every employee a sense of pride in the work that he must do• Invest in training people at all levels in quality theory and practices• Empower employees to go to any length to satisfy the customer
How PMT Promotes Quality Leadership
Product Quality iswhat is perfect from
the customer’ viewpoint
Product Quality iswhat is perfect from
the customer’ viewpoint
GUIDING PRINCIPLES
Every Commitment madeto the customer must be
honored
Every Commitment madeto the customer must be
honored
No matter what the costthe customer must be
satisfied
No matter what the costthe customer must be
satisfied
Communicate the ideathroughout the companyCommunicate the idea
throughout the company
Set a PersonalExample
Set a PersonalExample
Create anenvironment
where theemployeeis free todevelophimself
Create anenvironment
where theemployeeis free todevelophimself
EmpowerPeople
EmpowerPeople
MotivateEmployeesMotivate
Employees
“Only when a man isfree, can be blossom”
Train PeopleTrain
People
A sense of honorA sense of honor
Pride in his workPride in his work
Clarity of PurposeClarity of Purpose
A drive forperfection
A drive forperfection
A commitmentto quality
A commitmentto quality
“Don’t start with the idea thatman is bad. Touch the right
chords in a worker to getquality”
A quality CEO must have:
QUALITYQUALITY
ASAS
INFRASTRUCTUREINFRASTRUCTURE
MukandMukand
Best Practices - MUKAND
• Do not dogmatically stick to any one TQM model
• Customize every quality ideology to corporate needs
• Create and empower a team only to drive TQM
• Train and retrain workers and managers in TQM
• Calculate the savings from every TQM Project
How Mukand Focuseson the Customer
Individual urge to service
internal customer
Individual urge to service
internal customer
ProcessQualityProcessQuality Customer
DelightCustomer
Delight
ProductServiceQuality
ProductServiceQuality
Individual urge to service
internal customer
Individual urge to service
internal customer
Product applicationknowledge
Product applicationknowledge
Individual urge to service
internal customer
Individual urge to service
internal customer
QA PracticesQA Practices
TechnologyTechnology
EquipmentEquipment
EquipmentEquipment
TechnologyTechnology
SPCSPC
High Qualityraw material
High Qualityraw material Qualified
personnelQualifiedpersonnel
Urge to Serviceexternal customer
QA EquipmentQA Equipment
ProductQuality
ProductQuality
QUALITYQUALITY
ASAS
SYSTEMSSYSTEMS
Modi XeroxModi Xerox
Best Practices - Modi Xerox
• Break down every process into an un- ambiguous sequence of steps• Document every process to create a manual for conformance• Devise systems that can function even if the individuals change• Keep the processes fixed and the organizational structure flexible• Use global quality audits to benchmark efficacy of systems
Quality Improvement Process - Modi Xerox
IDENTIFY OUTPUTIDENTIFY OUTPUT
IDENTIFY CUSTOMERIDENTIFY CUSTOMER
IDENTIFY CUSTOMERREQUIREMENTS
IDENTIFY CUSTOMERREQUIREMENTS
TRANSLATE REQUIREMENTSINTO SUPPLIER SPECIFICATIONS
TRANSLATE REQUIREMENTSINTO SUPPLIER SPECIFICATIONS
PLANNING FOR QUALITY
Quality Improvement Process - Modi Xerox
ProblemSolvingProcess
Identifyand selectproblem
AnalyzeProblem
Generatepotentialsolutions
Evaluatesolution
Implementsolution
Selectand plansolutions
Selectmeasurements
Selectmeasurements
Determineprocess
Capability
Determineprocess
Capability
Organizingfor Quality
Identify Stepsin work processIdentify Steps
in work process
Evaluateresults
Evaluateresults
MONITORINGfor Quality
RecycleRecycle
QUALITYQUALITY
ININ
MANUFACTURINGMANUFACTURING
RanbaxyRanbaxy
Best Practices - Ranbaxy
• Automate manufacturing processes as much as possible
• Create completely process-driven manufacturing systems
• Establish a system of color-coding to manage rawmaterials
• Document work processes and post them at allworkstations
• Educate workers continuously on corporate goals
How Ranbaxy Builds Quality intoits Production Process
Raw materialsand Packing
materialsare received in
warehouse
Raw materialsand Packing
materialsare received in
warehouse
Material isstored in
quarantine
Material isstored in
quarantine
Material ischecked for
physical damageor short delivery
Material ischecked for
physical damageor short delivery
Quality Controlis notified and
material labeled
under test
Quality Controlis notified and
material labeled
under test
Sampling andchecking
is done byquality control
Sampling andchecking
is done byquality control
Insuranceprocedures are
initiated.Vendor
is notified
Insuranceprocedures are
initiated.Vendor
is notified
Recording ofenvironmental
conditions
Recording ofenvironmental
conditions
Printedpackagingmaterial isdestroyed
Printedpackagingmaterial isdestroyed
Material isstored in
rejects bay
Material isstored in
rejects bayProduction
Quality Checks
How Ranbaxy Builds Quality intoits Production Process
Material istaken to
fabricationarea
Material istaken to
fabricationarea
Environmentalconditions infabrication
area arechecked
Environmentalconditions infabrication
area arechecked
Bulkfabrication
takesplace
Bulkfabrication
takesplace
Filled capsulesample is
checked byQualityControl
Filled capsulesample is
checked byQualityControl
Environmentalconditions infabrication
area arechecked
Environmentalconditions infabrication
area arechecked
Capsulesare
filled
Capsulesare
filled
CorrectedCorrectedRecording of
environmentalconditions
Recording ofenvironmental
conditions
Recording ofenvironmental
conditions
Recording ofenvironmental
conditionsCorrectedCorrected ReprocessingReprocessing
Production Quality Checks
How Ranbaxy Builds Quality intoits Production Process
Environmentalconditions infabrication
area arechecked
Environmentalconditions infabrication
area arechecked
Blisterpacking
takesplace
Blisterpacking
takesplace
Environmentalconditions infabrication
area arechecked
Environmentalconditions infabrication
area arechecked
FinalProduct isforwarded
fordistribution
FinalProduct isforwarded
fordistribution
CorrectedCorrectedRecording of
environmentalconditions
Recording ofenvironmental
conditionsCorrectedCorrected ReprocessingReprocessing
FilledCapsulesample is
checked byQuality Control
FilledCapsulesample is
checked byQuality Control
QUALITYQUALITY
ASAS
AFTER SALES SERVICEAFTER SALES SERVICE
ThermaxThermax
Best Practices - Thermax
• Ensure that the TQM drive extends to service franchisees
• Empower franchisees to take decisions on the
customer’s premises
• Focus on preventive, rather than curative, maintenance
• Log, monitor, and analyze customer complaints every day
• Stipulate deadlines within which franchisees must
fix problems
How Thermax Ensures Timely Spares Supply- Tracing the Causes
MATERIALN.A. IN
4 WEEKS
MATERIALN.A. IN
4 WEEKS
IMPORTSIMPORTS MANMAN
MATERIALSMATERIALS SYSTEMSYSTEM
Supplier delay
DelayedConsignment
Customs Delay
Delay inreleasing order
Low priority tospares by production*
DelaySuppliersDefault
Lackof F/U
QC Rejection
Quality
BulkFailures
Delayed indentsto materials
Disproportionatedistribution
Single source
TransportationTimemore
Engg. Specs. Change
Mini-max levelsnot in place*
Materialnot indented
Sufficient QTYnot intendedVariation in
cons. pattern
Noreview*
* MOST PROBABLE CAUSE
How Thermax Ensures Timely Spares Supply- Tracing the Solutions
INVENTORYLEVELS
IN PLACE
INVENTORYLEVELS
IN PLACE
METHODSMETHODS MENMEN
MACHINEMACHINE SYSTEMSYSTEM
Lead Time
Identity taskforce
ABC/VED
Training onnew
software
Periodic review ofSuppliers
Upgrading existingsoftware*
* POSSIBLE SOLUTION
Fix levelsby scientificmethods*
Cons.
Monthly reviewof VA Items
Interphasing of revisedsoftwarewith existing*
QUALITYQUALITY
ASAS
MARKETINGMARKETING
Hindustan LeverHindustan Lever
Best Practices - HLL
• Validate every marketing step through customer feedback
• Identify specific business needs for every new product
• Use cross-functional teams to filterout unworkable ideas
• Judge advertising quality against specific parameters
• Depend on market research to finetune
communication strategy
How HLL Markets Quality
Consumerresearch
Consumerresearch
Unileverglobal
businesspriorities
Unileverglobal
businesspriorities
Competitor’smove
Competitor’smove Research
breakthroughResearch
breakthrough
Product IdeaProduct Idea
R & D Manufacturing
Marketing Finance
Businessneed Budget Deadline
No
Yes
Cross-functional team
Project brief
Unileverglobal pool of
knowledge
Unileverglobal pool of
knowledge
Is itthe right
time?WaitWait
Action Plan
How HLL Markets Quality
Key milestoneto checkprogress
Key milestoneto checkprogress
STRATEGIC FILTERS• Cross-functional
teams to check whetherconcept is working
STRATEGIC FILTERS• Cross-functional
teams to check whetherconcept is working
CREATIVE BRIEF• Reason why• Objectives• Brand positioning• Brand personality• Target audience• Budget• Brand discriminator• Advertising property
Consumer researchConsumer research
Final productFinal productBrief toagency
Brief toagency
ResearchResearch
AD TRACKING• Ad recall• Attitudes• Brand-image associations
AD TRACKING• Ad recall• Attitudes• Brand-image associations
LaunchcampaignLaunch
campaign
Find-TuneFind-Tune
Consumer researchConsumer research
MediaModelsMediaModels
LaunchProduct
LaunchProduct
Find-TuneFind-Tune
SALESTRACKING• Trial & repurchase• Brand switching
SALESTRACKING• Trial & repurchase• Brand switching
Freshen advertising every yearFreshen advertising every yearWhatNext
QUALITYQUALITY
ASAS
SERVICESERVICE
HDFCHDFC
Best Practices - HDFC
• Reduce paperwork to make it easier for customers
• Reduce the time customers spend waiting in offices
• Identify steps that can be merged or eliminated
altogether
• Provide information and reduce transaction times
• Recruit inexperienced people to eliminate de-training
How HDFC is Cutting Loan Disbursal Times
Yesterday (Until 1992)Yesterday (Until 1992)
Visit 1
Customerpurchasesapplicationform fromHDFC offices
Visit 1
Customerpurchasesapplicationform fromHDFC offices
Visit 2
Submits formwith documentsrequired forcreditappraisal
Visit 2
Submits formwith documentsrequired forcreditappraisal
Visit 3
isinterviewedby creditappraiser
Visit 3
isinterviewedby creditappraiser
Visit 4
Submits legaldocumentsto legalappraiser
Visit 4
Submits legaldocumentsto legalappraiser
Visit 5
Collectsdisbursalcheque
Visit 5
Collectsdisbursalcheque
Loan sanctioned by centralisedcredit committee that meets
since a fortnight
Loan sanctioned by centralisedcredit committee that meets
since a fortnight
Technical officer visits siteand submits report. Date
given for disbursal
Technical officer visits siteand submits report. Date
given for disbursal
4 - 6 Weeks
How HDFC is Cutting Loan Disbursal Times
Today (Until March 1995)Today (Until March 1995)
Visit 1
Customer takes freeapplicationform andsubmits it ifhe has a salary slip
Visit 1
Customer takes freeapplicationform andsubmits it ifhe has a salary slip
Visit 2
Submits otherdocumentsrequired forcredit appraisalis interviewed
Visit 2
Submits otherdocumentsrequired forcredit appraisalis interviewed
Visit 3
Submitslegaldocuments.Date given fordisbursal
Visit 3
Submitslegaldocuments.Date given fordisbursal
Loan Sanctioned bybranch - level credit
committee thatmeets once a week
Loan Sanctioned bybranch - level credit
committee thatmeets once a week
2-4 Weeks
TechnicalOfficer visits
site and submitsreport
TechnicalOfficer visits
site and submitsreport
Visit 4
Collectsdisbursalcheque
Visit 4
Collectsdisbursalcheque
Visit 2
Submits allremainingdocuments
Visit 2
Submits allremainingdocuments
Visit 3
CollectdisbursalCheque
Visit 3
CollectdisbursalCheque
LoansSanctioned
daily
LoansSanctioned
daily
Visit 1
Collects andsubmitsapplicationform.is Interviewed
Visit 1
Collects andsubmitsapplicationform.is Interviewed
Technical Officervisits site and
submits report
Technical Officervisits site and
submits report
1Week
Tomorrow (From April 1995)Tomorrow (From April 1995)
How HDFC is Cutting Loan Disbursal Times
QUALITYQUALITY
ASAS
HRDHRD
InfosysInfosys
Best Practices - Infosys• Treat employees as customers of the human
resource department
• Use the jobline of everyemployee to install quality
checks
• Research workers’ requirements to design benefits
and rewards
• Use tests and interviews to ensure suitable
skills and mindset
• Adopt 360 degree appraisal to ensure objectivity
of assessment
How Infosys applies Quality to HRD
Scout at the bestengineering
schools
Scout at the bestengineering
schools
CampusrecruitmentCampus
recruitment
Walk-inrecruitmentWalk-in
recruitment
Head-huntingHead-hunting
EnsureAnalytical
- skills
EnsureAnalytical
- skills
Ensureleadership andcommunication
skills
Ensureleadership andcommunication
skills
Train forspecific
technology
Train forspecific
technology
Ensureteam spiritand high
achievementgoals
Ensureteam spiritand high
achievementgoals
WrittenTest
WrittenTest InterviewInterview InductionInduction Allocation
as softwaredeveloper
Allocationas softwaredeveloper
offer specialbenefits toindividuals
offer specialbenefits toindividuals
Offer stockoptions after
evaluatingperformance
Offer stockoptions after
evaluatingperformance
Use employeefeedback to
improvework
environment
Use employeefeedback to
improvework
environment
Use 360degree
appraisalobjectivity
Use 360degree
appraisalobjectivity
EnsureConstant
training. Shuttlebetweenprojects
EnsureConstant
training. Shuttlebetweenprojects
How Infosys applies Quality to HRD
Check formanagement skills,fairness, and ability
to meet deadlines
Check formanagement skills,fairness, and ability
to meet deadlines
Check for ability tohandle large projects
and complicatedlogistics
Check for ability tohandle large projects
and complicatedlogistics
Promotionto module
leader
Promotionto module
leader
Promotionto project
leader
Promotionto project
leader PromotionsPromotions
Movement totechnology stream
Movement totechnology stream ResignationResignation
• Analyze reason for resignation• Counsel employee on career plans• Negotiate retention or release employee• Send report to employee’s superior and databank
• Analyze reason for resignation• Counsel employee on career plans• Negotiate retention or release employee• Send report to employee’s superior and databank
HRDprocess
QualityChecks
ConclusionIn marching towards the 21st century, Indian corporate have begun the journey of TQM. The journey is very painful. Yet, there is no alternate road for excellence. TQM is both a goal and a path. Therefore, the quality journey is one that can never end.
THANK YOU!
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