presentation by r.mukundan director, team … practices in indian...tqm practices in indian...

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


internal customer

ProcessQualityProcessQuality Customer

DelightCustomer

Delight

ProductServiceQuality

ProductServiceQuality


internal customer


internal customer

Product applicationknowledge

Product applicationknowledge


internal customer


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


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


conditions

Printedpackagingmaterial isdestroyed

Printedpackagingmaterial isdestroyed


rejects bay


rejects bayProduction

Quality Checks


Material istaken to

fabricationarea

Material istaken to

fabricationarea

Environmentalconditions infabrication

area arechecked


area arechecked

Bulkfabrication

takesplace

Bulkfabrication

takesplace

Filled capsulesample is

checked byQualityControl

Filled capsulesample is

checked byQualityControl


area arechecked


area arechecked

Capsulesare

filled

Capsulesare

filled

CorrectedCorrectedRecording of

environmentalconditions


conditions


conditions


conditionsCorrectedCorrected ReprocessingReprocessing

Production Quality Checks



area arechecked


area arechecked

Blisterpacking

takesplace

Blisterpacking

takesplace


area arechecked


area arechecked

FinalProduct isforwarded

fordistribution

FinalProduct isforwarded

fordistribution

CorrectedCorrectedRecording of

environmentalconditions


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


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


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


Visit 4


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)


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!

presentation by r.mukundan director, team … practices in indian...tqm practices in indian...

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