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FICCI CE
Index
TQM Best practices of global leaders :- 8-46
Honda
Hewlett Packard
Ford
Motorola
American Express
Index
Effective Leadership - Best Practices
60-62
Customer Satisfaction Management
What constitutes value to customers
Characteristics of customer satisfaction 63-99
What drives customer loyalty
Measures of customer satisfaction
Quality Function deployment
100-119
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Index
Index
Measures of Quality
207-219
Employee related
Operations related
Customer related
Financial related
Honda Experience
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Honda Experience
Brief History
Honda Experience
3 Joys
Quality objective
TQM - Methodology
Hewlett Packard
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HP-Problems
TQM implementation
10X
Phenomenal results
Results
Ford
FORD Quality Policy
The concept of Ford Quality Excellence emphasizes the
importance of quality in everything we do. To us Quality comes
first. To achieve customer satisfaction, the quality of our products
and services must be our number one priority.The fundamental
precepts of Ford Quality Excellence are :
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Ford
Quality is determined by the customer, the customer wants
products and services that throughout their life, meet his or
her own needs and expectations at a cost that represents
value.
Quality excellence can best be achieved by preventing
problems rather than by detecting and correcting them
after they occur.
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Ford
Ford
Ford
Motorola
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Motorola
Motorola
Motorola
Motorola
Key initiatives
Six sigma quality
Total cycle-time reduction
Product, manufacturing and environmental
leadership
Profit improvement
Empowerment for all in a participative, cooperative
and creative manner.
And creative workplace
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American
Express
Vision : Be the worlds most respected service brand
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American
Express
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Reasons of failure
Materialistic approach
Ritualistic approach
Spiritualistic approach
Balancing act
Reasons of failure
Reasons of failure
Reasons of Failure
TQM overly complicated by Statistical Process
Control techniques. Employees did not see much
purpose.
Clashes with other initiatives. Failure to link TQM
strategically with business goals.
Since TQM has a lot to do with downsizing and
delayering, the middle management did not support.
Many initiatives were left half way because they
did not result in improved profits.
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Reasons of Failure
Although TQM was conceptually applicable to all depts./
functional areas , in actual practice it was confined to
Quality Assurance or Quality control of product or service.
1. Effective Leadership
2.Customer satisfaction Management
3. Building quality culture
4. Developing high performing processes
5. Improving product quality and reliability
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Continuous Improvement
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Customer Satisfaction
Product
Performance
Reliability
Durability
Serviceability
Aesthetics
Perceived quality
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Service
Accessibility
Reliability
Tangibles
Responsiveness
Empathy
Assurance
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How to exceed
customer expectations
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Performance
Needs Needs
Basic
Very dissatisfied
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Perceived Customer
value satisfaction
Customer
Customer
loyalty
expectations
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Customer satisfaction
International
Surveys Customer marketing
satisfaction Review actions
dept Emerging issues
Administration
Action plan
Complaints
Issue Domestic
identification Marketing
Customer
Prioritization
Critical Ownership Technical
Situations
Delivery
Other
Service
QFD
QFD
Technical
requirements
Operational goals
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Importance
Customer Requirements on 10 point
scale
Very Important
Moderately Important
Slightly important
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Technical Requirements
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Complaints
Customer competitive
evaluation on 5 point scale( 5 high , 1 low )
Rank
1 2 3 4 5 Action
Customer Requirements
Technical Requirements
Strong relation
Moderate relation
Weak relation
Rank
Customer Requirements
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QFD Matrix overview after step 4
Technical Requirements
Competitive evaluation
Rank
Customer Requirements
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Technical Requirements
Competitive evaluation
Rank
Customer Requirements
5
Competitive 4
Technical Competitor assessment
3
Assessment 2
Our assessment
1
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Step 6 : Mention operational targets or action points
Technical Requirements
Competitive evaluation
Competitive
Technical
Assessment
Operational
New Product
Targets
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Classification of needs
4 Easy to drive
Easy to drive Durable
Excellently finished Quiet riding
Quiet riding Smooth ride
Classic styling Protects driver
Smooth riding Excellently finished
3
New Car
QFD - Conclusion
not a sprint
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Re
cog
nit
io na
nd
Commitment r ew
Pro ard
Qualit c ess s
y ac t i on ow
ner
shi
p
Intern Con
al tQinuu
and ex aoliutsy i
ternal mwporok
custom veenmvi
e r focuemployees Q u a li ty ernot nm
Organization loyalty to s ent
resu
l ts
Top down leadership Vision mission and quality policy
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HR Best practices
HR Best practices
HR Best practices
HR Best practices
HR Best practices
HR Best practices
Create a work culture that is transparent, open to
new ideas and promotes lot of creativity and
innovation.
Equipment
&
Technology Continuos
Quality
Right
Empowerment
Measurement
Zero
Prevention
SPC
PDCA
5TPM
first
improvement
Defects
Principles
S
Tools
time
Quality of raw
material / suppliers Processes
Quality
Benchmarking
BPR
Techniques
Competent
people
Product
quality
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Process Improvement
Operational Process
Analysis of improvement
process Principles
A D
C
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Analysis of a Process
Who?
What?
How?
Where?
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Redistribution of task
Elimination of waste and unnecessary task
Proper utilization of skills
Consolidation of group activities
Elimination of wasted efforts
Correct skill deficiencies
Task dependencies
Time utilization
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Simplification of tasks
Prioritization of task elements
Elimination of excessive delays and transportation
Rearrangement of work stations
Use of faster methods and tools
Change in processing time
Work load balancing
Performance assessment
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Principles of process
improvement
Waste Reduction
Process Simplification
Cycle-time reduction
Process measures
Waste reduction
Value-added assessment
Minimize checks and inspections
Minimize administrative tasks
Minimize storage and transportation activities
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Process Simplification
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Process simplification
New Process
Assemble Self
Inspect
computer parts unit
sub-assembly Quality
Waste
Cycle-time reduction
Profit
Strategies Sales
Customer satisfaction
Profit
Sales
Customer satisfaction
Strategies
Performance
measures
Foolproofing
Types of error
Types of error
Principles
of
foolproofing
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A. Prevention of occurrence
Prevention of occurrence
Elimination
Replacement
Facilitation
B. Minimization of effects
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B. Minimization of effects*
Detection
The concept of detection is that even if a human
error occurs, the deviations from standard states
caused by it can be detected and corrected in the
succeeding operation steps. The methods of
correcting the detected deviations are classified
into two types :
1. Operators are informed or find by themselves the
deviations and take necessary corrective action.
2. The deviations are automatically corrected without
operators
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Detection
Mitigation
Product Reliability
Accelerated Testing.
Six Sigma
INPUTS OUTPUTS
Criteria
of evaluation Results
Ideas
Daydreaming Better
Observing Faster
Brainstorming Cheaper
Aesthetic
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1. Preparation
2. Incubation
3. Illumination
4. Verification
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Preparation
Incubation
Illumination
Verification
Barriers to creativity
8. Measures of Quality
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Measures of Quality
Employee related
Employee satisfaction
Awards presented
Internal promotions
Turnover
Safety and health
Suggestions received and implemented
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Operations related
Operations related measures can be classified further
into following categories :-
Marketing
Purchase
Manufacturing
Product Engineering
Quality Assurance
Product reliability
Accounting
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Marketing
Purchase
1. Premium freight cost/ demurrage charges.
2. Down - time because of parts shortages.
3. Number of Off specification parts used to keep line
going.
4. Cycle time from start of purchase request until items
in house.
5. Excess inventory.
6. Percentage of purchased material rejected on receipt.
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Manufacturing
Product Engineering
Quality Assurance
Product Reliability
Accounting
Customer related
Financial measures
Market share
Sales per employee
Return on assets
Return on sales
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