Godrej

Godrej started TQM in 1995. It wasnt only for the company, but for everyone (Eq. Partners, Suppliers, Distributors, etc.) TQM Principles: 1. Customer Satisfaction: Their primary focus was on SATISFYING CUSTOMER NEEDS. It was very important for them to make sure, that the customers are satisfied with the kind of products and services provided by the company. 2. Plan-do-check-act cycle: They used it to effect both major performance breakthroughs as well as small incremental improvements in projects and processes. 3. Management by fact: All employees collect data about the work they perform, and use that information to make decisions affecting their work. 4. Respect for people: It applies to everyone in the company. Listening to each other and trust the members of the team. TQM Elements: 1. Total Employee Involvement: Use the knowledge and creative powers of all employees, individually and in small teams. 2. Total Quality Control: Dont look only at the quality of the product but of every single system in the company. It increases productivity, reduces costs, increases market share etc. 3. Total Waste Elimination: Things like, non-value-adding activities & results Overproduction, Wiating, Transportation, Inventory, Over-processing, Defective units are to be eliminated. TQM Seven-Year Journey Activities / initiatives year-wise: 1995-96: TQM Awareness programmes conducted for all employees across all cadres from the Chairman and Managing Director to the lowest grade worker. The first 7 awareness programmes were conducted by Eicher Consultancy Services (ECS). Train-the-Trainer concept was utilized for creating a pool of 60 internal trainers. 1996-97: Visioning session held to select our 10 Corporate Shared Values; No more hand-holding by ECS (consultant) required; TQM training and facilitation across the organisation done entirely by an internal team TQM Centre created. 1997-98: Initiation of 5S all across the organisation; Commencement of 5S Audits; Special focus on integration of business strategy/plans and TQM; Tracking and compiling of monetary benefits from SGAs initiated; Initiation of Task Forces; Employees start participating in QC Conventions held at various locations. 1998-99: Introduction of the CII-EXIM Business Excellence Model; 20 employees undergo special training as Assessors for the CII-EXIM BE Award.

Kaizen Appreciation Forum held for the first time to recognise and appreciate Star Kaizens from across the organisation; held regularly every quarter. 1999-00: Self-Assessment of all businesses conducted as per the CII-EXIM Business Excellence Model; Strengths and Areas for Improvement listed for each of the 9 criteria in the Model. 2000-01: TQM Awareness programmes conducted for our business partners: Suppliers, C&F Agents, Distributors, etc. TPM initiated at Pondy Factory (GSLL) and Valia Factory (GSL); Six Sigma initiated at Pondy Factory. 2001-02: TPM initiated in almost all our major factories/units. KAIZEN: CONTINUOUS IMPROVEMENTS The specific achievements of the Kaizen system as operated in Godrej: Significant increase in employee involvement and morale. Significant savings have also resulted. The organisation is becoming more flexible, with greater capability to adapt to the rapidly changing needs of the environment. A reduction of over 70 per cent in changeover time on the shop floor has been achieved in all Plants. Manufacturing has been able to meet the changing needs of marketing with smaller lot sizes without losing economies of scale. Today, Godrej enjoys one of the lowest changeover times in the industry. The quick response to marketings needs has reduced finished products inventory by over 40 per cent maintaining the same service level. Introduction of the first phase of Total Productive Operations has resulted in a continuous decline in the cost of spares and repairs, to about 50 per cent of that at the introduction of the programme. Through lower energy consumption, one of the two high pressure boilers in the Vikhroli Factory has now become redundant. It was a result of hundreds of tiny improvements brought about by everybody in the organization. Reducing demands of energy for the same output has become a set pattern in the Company. Value Analysis exercises have reduced costs of materials while enhancing the quality of output. This runs into lakhs of rupees every month. Every month, thousands of improvements are occurring company-wide; they extend to all spheres of activity including Finance, Marketing, Personnel. An improvement-oriented culture has set into the organization with employees looking out for opportunities to make improvements and savings. TQM at RINL(Rashtriya Ispat Nigam Limited) One of the leading public sector enterprises under the Ministry of Steel, Government of India Located in the state of Andhra Pradesh.

TQM was implemented in the company to achieve the objectives of: Preparing the company's products and internal processes to global standards Enhancing quality, productivity, and total performance of the organization Enriching the quality of work life of its employees

How TQM was Implemented? The journey of TQM in the company began on September 15, 1995 with the setting up of the TQM Cell. To meet the quality planning requirements as well as to facilitate continuous improvement, the company has established, documented, implemented and maintained the Quality Management System (QMS) in accordance with the requirements of the International Standards. In order to verify and determine the effective implementation and maintenance of the QMS, quality audits were carried out at regular intervals by the Internal Quality Auditors. The company also implemented a number of TQM tools such as Formation of Quality Improvement Projects (QIPs ), Signing of MOUs ISO certification Benchmarking Employee involvement schemes House keeping The company embarked upon both external and internal benchmarking for improving its production, commercial, and financial performance. It benchmarked with British Steel Co., South Korea Steel Plant (POSCO)1 SAIL, and Tata Steel for reduction in the rejection rate, affrorestation, and improving manpower productivity respectively. Annual improvement action plans were implemented involving techniques like Kaizen cycle time reduction for further improvement in delivery and technological process upgradation, leading to improvement in quality of products and enhanced customer focus. Tangible benefits of implementing TQM Increase in sales per year from Rs. 3263.66 cr to Rs. 7867.6 cr Reduced manufacturing expenses from. Rs. 3,94,706.6 cr to Rs. 3,46,158.86 cr Reduced net loss incurred by the company from Rs. 6,97,525.90 cr to Rs. 4,00, 94.58 cr Reduced the defective products from 5.76% to 1.2% Accident rates reduced from 113 to 107 (both fatal and non-fatal) Customer complaint rates from 0.27 to 0.13 (of total sales) Increased productivity rate (tonnes per man year) from 176 to 194 from the pre-TQM to postTQM period. INTANGIBLE BENEFITS

Image of the organization has improved. Reduction in inventory. Reduction in rejections and complaints. Customer satisfaction. Lower manufacturing cost. Reduction in deviation. Continuous improvement. Drastic reduction in defectives and number of defects.