Future of Quality 1. Changing Global Scenario 2. Challenges Theme - PDF document

Lucas-TVS Ltd Lucas-TVS Ltd Contents National Quality Conclave Future of Quality 1. Changing Global Scenario 2. Challenges Theme : Perspective on Industry 3. Delivering Customer Value by 4. Quality Evolution Dr N Ravichandran 5. Future Focus Chief Executive Officer Lucas-TVS Ltd, Padi, Chennai 600 050 6. Conclusion 11 th February 2011 New Delhi Dr. N. Ravichandran Dr. N. Ravichandran 1 2 Lucas-TVS Ltd Lucas-TVS Ltd Competitiveness in the Global Business Environment � Fast changing Business Environment is characteristic of 21st Century. � Rapid pace of Globalisation & Technological progress have changed 1. Changing Global Scenario market conditions & competitive strength. � Business potential depends on Quality, Speed, Technical superiority, Service and Product differentiation. Dr. N. Ravichandran Dr. N. Ravichandran 3 4 Lucas-TVS Ltd Lucas-TVS Ltd The world in which we do Business Changing Business Environment Major technical advancement ��������� ����� Continuing pricing Natural resources defined power Knowledge is power margin prices Demanding customer requirements Leaders commanded and controlled Leaders empower and coach Excess global Shareholders came first Customers come first capacity Production determined availability Quality determines demand Economic challenges in all regions Cost reduction & Everyone was competitor Everyone is customer norms Value was extra Value is everything Global Challenging equity consolidation - mergers Dr. N. Ravichandran Dr. N. Ravichandran 5 6 1

Lucas-TVS Ltd Lucas-TVS Ltd Futuristic Product 2. Challenges Dr. N. Ravichandran Dr. N. Ravichandran 7 8 Lucas-TVS Ltd Lucas-TVS Ltd Challenges of global Market REQUIREMENTS OBJECTIVES • Stronger Competitiveness • Flexibility • Increase of Product Complexity • Higher Productivity 3. Delivering Customer Value • Higher Growth • Decrease the Production depth • Consistent Products • Faster reaction • Global Market • Continuous Quality Improvement • ISO 14001 & OHSAS 18001 • Environmentally responsible Company Dr. N. Ravichandran Dr. N. Ravichandran 9 10 Lucas-TVS Ltd Lucas-TVS Ltd Delivering Customer Value ������� ���� ���� 4. Quality evolution ��������� ��������� ������������ ����������� ���������������������������� ���������������������������� ���������������������������� ���������������������������� ����������������������������� Dr. N. Ravichandran Dr. N. Ravichandran 11 12 2

Lucas-TVS Ltd Lucas-TVS Ltd Quality Quality Subjective term for which each person has his or her own definition. In technical usage, quality can have two meanings: ‘A measure of excellence’ 1. The characteristics of a product or service that bear on its ability to satisfy stated or implied needs. 2. A product or service free from deficiencies. Note: ISO 9000 : 2000 version defines Quality as “Degree to which a set of inherent characteristics fulfils requirements. Dr. N. Ravichandran Dr. N. Ravichandran 13 14 Lucas-TVS Ltd Lucas-TVS Ltd Scope of Total Quality Philosophies & Frameworks Practices PHILIP B CROSBY � There are no short cuts to Quality. W EDWARDS DEMING � No Quick Fixes. KAORU ISHIKAWA � Improvement requires full commitment and support from top. Principles � Extensive training needed. � Participation of all employees needed. SHIGEO SHINGO CLAUS MOLLER Participation and Team work Tools and Techniqu Infrastructure GENICHI TAGUCHI Dr. N. Ravichandran Dr. N. Ravichandran 15 16 Lucas-TVS Ltd Lucas-TVS Ltd Total Quality Model Index of overall Reliability satisfaction Product and On-time Customer Customer service Quality delivery satisfaction retention Errors of Complaints defects Market share Leadership for Competitiveness continuous Profits 5. Future Focus improvement Costs Quality systems and Cycle time employee involvement Employee turnover Organization benefits Employee satisfaction Safety and health Productivity Dr. N. Ravichandran Dr. N. Ravichandran 17 18 3

Lucas-TVS Ltd Lucas-TVS Ltd Future Quality System Future Quality System Conventional Current Future Conventional Current Future S. No Area S. No Area Quality System Quality System Quality System Quality System Quality System Quality System Design in half the time, half 1 Customer Customer satisfaction Customer satisfaction Customer loyalty 7 Design Design in isolation Computer simulation the defects, half the costs, half the manpower Inspiring leadership to help 2 Management Leadership not stressed Leadership mentioned people reach their full Dictatorial & remote control Win-win partnership, based 8 Suppliers Laissez-faire potential relationship on ethics, trust & active help Taylorism, Fear driven A few experts rest of people True empowerment, freedom, 3 Employees 9 Manufacturing Leans on inspection Leans on Leans on perfection drudgery passive joy in the workplace Vertical structure Flat pyramid, teams the Service contracts to cover 4 Organization Departments the norm Tall Pyramid building block 10 Field FMEAs MEOST, built in diagnostics product weaknesses World class system business 5 System ISO-9000; QS-9000 Quality mindedness promoted excellence a superordinate 11 Support services No business on quality Quality appreciation Quality initiatives value Shainin DOE, MEOST, QFD, Return on quality in vestment: Measurement / Quality improvement for its Encourages return on quality 6 Tools 7QC Tools, PDCA & 8-D Classical DOE TPM, NOAC, VE & Cycle time 12 over 10:1; profit results own sake investment - 2:1 to 4:1 improvement: minimum 2:1 Dr. N. Ravichandran Dr. N. Ravichandran 19 20 Lucas-TVS Ltd Lucas-TVS Ltd What makes the difference Advancement Achievement Action People Alignment Appreciation Awareness Dr. N. Ravichandran Dr. N. Ravichandran 21 22 Lucas-TVS Ltd Lucas-TVS Ltd 12 Steps Five value systems 1. Customer orientation 2. Participation 1. Pride 3. Training 4. Motivation 2. Desire 5. Products and Services 3. Teamwork 6. Processes and Procedures 4. Attention to detail 7. Information 5. Follow through 8. Suppliers 9. Culture 10. Planning 11. Communication 12. Accountability Dr. N. Ravichandran Dr. N. Ravichandran 23 24 4