DEMING PRIZE

What it takes for focused improvement?

TARUN KSG VISHAL AGGARWAL SAURABH THADANI SRIKANTH KONDURI VARUN JOSHI VIDU RASTOGI

OM-1 Term-2 Project

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Agenda The Deming Prize TQM Indian award winners TATA STEEL M & M FES

NEI LTD.

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The Deming Prize

The purpose of the Deming Prize was to recognize those who excelled in quality control and as a way of driving quality control Deming Prize was established in 1951 Dr. W. E. Deming was one of the worlds leaders of Quality management It was also established to thank Dr. Deming for his accomplishments and impact in the Japanese industry

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Deming Award - Categories

Deming Prize

Deming Prize for Individuals

Deming Application Prize

Quality Control Award For Factories

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Application Process
Consult with the Deming Prize Committee Complete & submit application form Submission of QC practices & Description of Business activities

Document Examination
F A I L S

PASSES

Eligible for on-site examination

On-Site Exam. & the decision of the winners is made by the Board of Directors

Examiner sends the applicant their findings

Televised Announcement

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The Deming Prize - FOCUS 20

Management policies and their deployment regarding quality management

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New product development/or work process innovation Maintenance and improvement of product and operational qualities Establishment of systems for managing quality, quantity, delivery, costs, safety, environment, etc. Collection and analysis of quality information and utilization of information technology

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Human resources development

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TQM New Focus

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Examination Viewpoints
Effective Implementation of TQM & Quality of Products, Services No Unnecessary rules & regulations. Concentrate on TQM for effectiveness

Using TQM rather than fancy statistical methods will fetch more points

Production/NonProduction parts looked at same way, does use TQM & no waste of Time & effort?

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DEMING PRIZE- Indian winners

Manufactures Automotive & Industrial friction materials

3rd largest tractor company in the world, operating in 20 countries

Worlds 7th largest steel company, annual crude steel capacity of 31 tonnes

2001

2002
3rd largest two wheeler manufacturer & 1st to launch 50cc moped in India

2003

2005
Leader in producing brake linings, discpads, railway brake blocks in India

2008

2010
Supplies ball bearings to Hero Honda ,Bajaj Auto, Maruti &Hindustan Motors

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DEMING APPLICATION PRIZE 2008

TATA STEEL

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Tata Steel
First integrated steel company in the world, outside of Japan, to win the Deming Application Prize World's 6th largest & 2nd most geographically diversified steel producer, with operations in 24 countries In year 2001-2002 as per the World Steel Dynamics, Tata Steel became the lowest cost producer of steel in the whole world Won the 2008 Deming prize for achieving distinctive performance improvements through the application of TQM

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Tata Steels journey towards Deming Prize

Prior to 1990, the company was primarily inward looking, not affected much with the happenings beyond Indian economy With globalization the company had to think 'out of the box'. It needed to redefine the business elements (4 Ms & 4Ps), vision, strategies, management tool and techniques etc Adopted the Total Quality Management (TQM) philosophy as a part of Competitive Strategy in late 1989. It started putting massive effort on education & training on TQM.

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Journey Continues
ISO 9001,9002 certification of various manufacturing & service units Process Improvements through Quality Improvement Projects (QIP's), Value Engineering Projects and SPCs Quality Circles for employee involvement and improvement Adopted the J N Tata Quality Award Model based on Malcolm Baldrige Model for its various divisions in the company in 1992 Benchmarking and BPR complemented the TQM efforts at Tata Steel in terms of continuous improvement Balanced Score Card integrated with TQM strategy in 1998

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Aspire
VISION 2007 in May 2002 - becoming an EVA positive company and also sustaining and improving EVA year on year An integrated improvement program named ASPIRE, acronym for Aspirational Initiatives to Retain Excellence, was launched as a vehicle to achieve this goal It not only focusing on tools & techniques but also on the power of mind. Philosophy evolves around self confidence & desire to excel Includes improvement tools like Suggestion Management, Six Sigma, TPM, Knowledge Management, TOC and some others related to TQM principles of Daily Management, Policy Management, Problem solving and Task achieving

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In 2005, conducted a TQM diagnosis along with the JUSE team. The TQM diagnosis gave them deeper understanding and clarity on their approach to quality: what areas should be addressed, who should get involved in what activities, etc. They specifically looked at: Strategic aspects or policy management: relooking at the balanced score card, looking at areas needed to change the business, etc Daily management: managing the day-to-day operations, ensuring that they are stable, looking for incremental improvements, etc People involvement: involving people in thinking about improvement activities such as quality circles, suggestion management, knowledge manthan, etc.

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Why they won?

The Deming Application Prize was awarded to Tata due to the recognition and accomplishments as follows. First, Tata links business strategy and TQM closely in a cooperative manner, focusing on quality. By using TQM as a tool to achieve the strategy, Tata has enjoyed positive effect on improving the quality of product/service, enhancing brand value, and increasing production volume. Second, Tata has successfully implemented various projects, in order to correspond with a rapid growth of Indian industry, such as the construction of new shaft furnace, called the H-furnace, and enlargement of facilities for quantitative expansion. Third, plentiful efforts seen in the improvement activities, mainly by small group activities, to enhance problem solving capability.

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What they themselves say

The process of working for and winning the coveted Deming Application Prize in 2008 has been a humbling and enlightening experience for Tata Steel. Humbling, because it helped Tata Steel pinpoint inconsistencies in its approach of managing its business based on logical principles that are often camouflaged during the good times and surface only during a crisis. Enlightening, because the same process has helped Tata Steel focus on its strengths in areas that are most critical to its business. - B Muthuraman, managing director, Tata Steel.

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DEMING APPLICATION PRIZE 2003

MAHINDRA & MAHINDRA FES

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M&M: The Road to TQM

Mahindra Tractors bagged the Deming Prize in 2003 In 1997, M & M Tractors decided to become the world's largest tractor manufacturer by 2007 and targeted to acquire the coveted Prize by 2003 The TQM journey was in three phases: 1. Introduction phase: 1990-94 2. Promotion phase: 1995-99 3. Development phase: from 2000 onwards

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Introduction phase (1990-94)

The first phase objectives were

(a) improving manufacturing quality through process control (b) improving the quality of bought out components, and (c) increasing productivity and reduce the cost of poor quality

Initiatives:
Statistical process control (SPC) Business process reengineering (BPR) in manufacturing Promotion Phase (1995-1999) The focus was standardisation and improvement of all operations.

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Development Phase (2000-2003)

Initiatives:
Enhanced use of Deming Prize Guidelines. Systematic use of tools like Quality Function Deployment (QFD), Design Reviews, DFMEAs, PFMEAs, CAE and SPC Use of advanced statistical tools like DOE and Six Sigma. Establishment of Mahindra Sales System (MSS) for improving Channel Capability, alongside DOE and Six Sigma. 100% involvement of all employees in improvement teams.

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Consolidation Phase (2004 +)

1. Implementation of JQM guidelines: Strengthening Kaizen culture & Policy Deployment. 2. Strengthen Unique Activities: Strengthening - New Product Development process. Introduction of Lean manufacturing and TPM . 2-way Communication with the Suppliers and Employees (Reach Out and Khula Manch) and Dealers (Dealer Direct). 3. Mahindra Quality Works developed by MIQ

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Benefits derived from TQM

The benefits derived over the years can be summed up as follows:

(a) reduction in rework (b) reduction in rejection at suppliers' end as well (c) improvement in field quality (d) increased productivity, customer satisfaction, employee involvement in continuous improvement (e) introduction of new models 15 models in three years.

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TQM at M & M Zaheerabad Unit

Energy Consumption Trends:

Specific electrical energy consumption in kWh/ eq. vehicle

Energy Cost as % of manufacturing cost

Equivalent vehicles produced

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SHE Management

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Pawan Goenkas Message

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SHE Implementation

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Kaizen Continuous Improvement

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DEMING APPLICATION PRIZE 2010

NBC BEARINGS

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NEI Ltd.
Part of the 150 year old, multibillion dollar C.K. Birla group Supplies ball bearings to all major two-wheeler makers in India, including Hero Honda and Bajaj Auto, as well as car-makers like Maruti and Hindustan Motors Manufactures nearly 4.6 Million Bearings per month in over 500 different sizes ranging from 6 mm bore to 1300 mm outer diameter

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Award recognition of excellence

NEI is the only Indian company & Bearing manufacturer ever to be declared winner of Deming Application Prize in 2010 It is a result of NEIs continuous focus of employees and partners on quality and reliability with effort towards systems improvements The TQM journey started way back in year 1995 when NEI was certified with ISO-9001. This was followed by QS-9000 in year 2000, TS-16949 in year 2003, Association of American Railroads (AAR) certification AARM-1003 for railway bearings in year 2005 and the TPM Excellence Award in year 2008

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Tangible Benefits (fetched TPM award in 2008)

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Tangible Benefits (fetched Deming Prize in 2010)

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POSITIVE EFFECTS
Quality Stabilization and Improvement Productivity Improvement / Cost Reduction Higher Sales and higher profits Customer delight & enhanced market share/margins Realization of Top Management's Dreams including Business Plans

TQM by Total Participation and Improvement of the Organizational Culture.

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THANK YOU

Quality is quite a lady! The more we understand her, the more we need to learn about her

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Bibliography:

March 2008 Newsletter of TPM Club India http://www.tpmclubindia.org/pdf/march08_newsletter.pdf Times of India Newspaper AD http://epaper.timesofindia.com/Repository/TOIM/2010/11/10/TOIM_2010_11_10_1.pdf April 2009 Special Issue of TPM Club India - CII http://www.tpmclubindia.org/april-09.pdf Newspaper Articles http://m.economictimes.com/PDAET/articleshow/6735845.cms http://www.thehindubusinessline.com/2010/10/14/stories/2010101452401900.htm JUSE home page www.juse.or.jp/e/deming/ The W. Edwards Deming Institute www.deming.org http://www.tqmi.com/demingprize.asp tata steel annual report 2008-09 tata steel homepage http://tatasteel.com/ tata steel aspire homepage http://aspire.tatasteel.com/ www.miq.in/mahindra-quality-way www.mahindra.com/enewsletter/issue2%202009/html/quality.html Progress @TPM The Newsletter from TPM Club of India Newsletter: Mahindra & Mahindra Zaheerabad Unit M & M Ltd: Automotive Sector by U.S.Joshi, Dy. General Manager(Power Planning, Energy Managemen Mahindra Sustainability Review, 2009-10

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