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Gillette case study   operations management

Gillette case study operations management



Operations Management

Operations Management



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    Gillette case study   operations management Gillette case study operations management Presentation Transcript

    • Gillette and Total QualityManagement
    • 2The Gillette Company History
    • 3Industry Profile as of 1999 Gillette Operates 54 facilities in 20 countries• Distributes Products in over 200 countries and territories• Approximately 30,000 employees Business Segments include:• Blades & Razors• Personal Care• Duracell• Oral Care (Oral-B)• Braun Sales of $9 billion and earnings from continuing operations beforetaxes were $2 billion
    • 4Competitive Market Competitors:• Proctor & Gamble• Johnson & Johnson• Warner & Lambert (Schick)• Increased competition worldwide from local competitors
    • 5QualityMeeting or exceeding customerrequirements now and in the future
    • 6What is TQM? Key Aspects of Total Quality Management (TQM)• Not Quantitative like Six Sigma• Focused on processes, and conceptual rather than targeted quantifiabledifference• Continuous Improvement, instead of just meeting specifications• Cost and Quality, not Cost or Quality TQM Practices:• Cross-functional product design• Process management• Supplier quality management• Information and feedback• Committed leadership• Strategic planning• Cross-functional training• Employee involvement
    • 7Why TQM was successful Argentinean market opening up post Peron era• Previously a Nationalist economic environment• Didn’t matter what Gillette produced, it would be bought Gillette Argentina leadership understood it had to adapt andrestructure to meet competition• In 1980s Carlos Rotundo starts quality initiatives• General Manager Jorge Micozzi took a TQM class in early 1990s• Became a huge proponent• Major driving factor in success ODI Consultants brought in by Gillette Latin America to helpimplement TQM• Expert help demonstrated successful path forward• Strong leadership buy-in
    • 8Why TQM was successful Leadership Support• GM Jorge Micozzi fully supported TQM implementation• Convinced reluctant division chiefs to support, often spend hoursconvincing them Correct Personnel assigned to Lead• Walker’s facilitated many of the implementations• Investigated and responded to all initial feedback during implementation• Set up Workshops to educate workforce• Facilitated Steering Committee to identify appropriate personnel andsponsors for the quality teams Cycle of Efficiency• As quality teams worked together they became more efficient• This efficiency allowed for greater cost savings in identifying qualityimprovements
    • 9Continuing the Success Continued Leadership Support• Hold fast to TQM implementations• Remember why TQM was implemented Continuous Improvement• Ensure Workforce understands• Must focus on production teamwork Customer focused – why produce quality goods• Top 4 customers represent 80% of sales• They must be satisfied with product
    • 10Case QuestionHow should quality be exportedto the rest of Gillette’s operationsin Latin America?
    • 11Why Quality Fails? Management ignorance and interference Insufficient support from top management Resistance to change Lack of training Internal constraints (i.e. politics and rivalries)
    • 12Recommendations Quality can be applied to all organizations operations Ensure Executives and Management buy-in to improving quality,top-down approach Reduce internal departmental barriers Enhance Teamwork Implement a new working culture and style that fits with qualityinitiatives Assign team leaders to export Argentina’s TQM success• Implement an incentive based program to reward the mostsuccessful Quality Action Teams• Create a virtual community in which success’/failures can beshared across regions
    • 13Questions?