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TQM Strategy for Continual
Improvements – the SRF Way

   3rd Continual Improvement
   and Innovation Symposium
           DQG, Dubai

               S. Ilango
    Associate Vice President - TQM
            17th Nov 2011
Backbone of our TQM Journey



     We are what we repeatedly do….
EXCELLENCE, therefore, is not an act but a
              HABIT
                              - Aristotle

                                             2
Contents of this Presentation

 About SRF

 The Deming Challenge

      Early Phase: 1991-1999

      Momentum Phase: 2000-2004

 TQM - for Continual Improvements

      TQM Models

      TQM Practices

 Results



                                     3
About SRF




        4
SRF – at a glance


   A multi-business manufacturing entity

   India, Thailand, UAE and South Africa


   12 (nine in India)

   800 million USD

   5500 globally


   75 countries



                                           5
Products SRF Manufactures                                        CB



                                                       Refrigerant Gases           CMS
           Yarn                   Griege Fabric



   TTB                                                           EPB
                    Dipped Fabric                   EP - Chips


                                                                              PFB
                                                                           Packaging
                                                                             Film

Belting Fabric    Coated Fabric     Fishnet Twine

                                                                                         6
Diverse applications
TTB       CB                PFB                EPB




               Touching your lives every day
                                                     7
Present in four countries




                                     Bhiwadi      Pantnagar
                                                       Kashipur
                                       Gwalior

                               Dubai Dahej
                                                              Thailand
                                      Indore
                                                            Thailand
                                                   Trichy
Business
TTB
                                         Manali
CB
                    Port Elizabeth        Gummidipoondi
PFB
EPB


                                                                         8
Global Foot Prints for SRF Products




     Meeting requirements of customers in more than 75 countries

                                                                   9
SRF – Proud Winner of Deming Application Prize




                                             10
The Deming Challenge




                   11
How TQM was chosen as SRF Management Way
              How TQM was chosen
                          Negative forces       Positive forces


                                                              Economic reforms
                                                                 from 1991
           Adverse union
            relationship                                   • Import of tyrecord fabric
                                                                • Possible closure

   • QC Circles born 1981 and ended
                  1987
                                                           Opportunity to become
                                                                World class



                                                              Exposure to Denso


       Low desire for change
        of Management way                                    TQM programme for
                                                           Top Management at JUSE
  • Any way we are making good profit



                                        TQM Way Chosen
                                                                                         12
TQM Introduction: Early Phase: 1991-99
JUSE Program – attended by TOP Management

 Decision to adopt TQM


  Creation of TQM Cell

     Communication from Chairman


        Design of TQM Frame Work


         TQM Education

            5S Training and Introduction


                                            13
TQM Introduction: Momentum Phase: 2000-04
                           14 Elements of Quality

Quality First Approach     Modernization - Technology
                           Breakthrough Equipment Design

                           5S, Kaizens

  People Development and   QCC and PSP
  Involvement              Maintenance Practices
                           People Red Book


                           Daily Management
    Strengthening System   Policy Management
                           Management Diagnosis

                                                           14
TQM – The SRF Way , for Continual Improvements




                                             15
Continual Improvement Framework
                                                         Cherokee Wisdom
Design of TQM Frame Work

 Management Diagnosis

   Annual Planning

     Improvement Hierarchy

       Constant Training and Communication

         People Participation Initiatives – Internal

           People Participation Initiatives - External

               ARC- Acknowledgement , Recognition and Celebrations

                                                                           16
He who has a hundred miles to walk should reckon
           ninety as half the journey.




                                   Thank You
Transformation Model

         Sensei
Master   (Truth sayer)
         Guru




                               Leap of
                                Faith


                                              Cultural change

                                                  Action
Awareness
                                   Attitude


                                               Theory-in-use


                                                           — adapted from Don Wheeler



                                                                                        18
Message from the thenVice-chairman
   Message from the then Vice-Chairman
1992   It is vital that SRF builds up its strengths and
       becomes a world class company, able to
       compete with the world’s best. TQM is a means
       to that end.

       The road to Total Quality will be a long
       one, spanning many years. In fact, over
       the next nine months, we are simply
       going to prepare ourselves to
       introduce TQM.

              Arun Bharat Ram
                            (Chairman and
                           Managing Director)




                                                          19
                                                           19
Constant Training and Communication




    5S Training         Kaizen Training Program
                                                        Basic TQM Training Program




                      Control Points Training Program

AM Training Program                                       PSP Training Program
                                Training


                                 Action
                                                                                     20
Progress of 5S



                                                                   Arrangement for all items




                                       Gangway Markings
         APC Training                                             5S Introduction – Mass Cleaning
               View of Stores
                                                                         Filing System




   Factory – Internal View
5S – Coordinator’s training               Factory External View
                                5S – Introduction of Trophies                5S Recognitions



                                                                                                    21
14 Dimensions of Quality

                                                                                      (Q3)
                     (Q0)             (Q1)
                                                               (Q2)                Sign off for
Upstream QA        Product          Product
                                                 Preparation for mass production      mass
                   planning       development
                                                                                   production


                                                      (Q6)            (Q7)
Down stream                            (Q5)         Physical       Roll rating     (Q8) Packing
                     (Q4)
 QA (before                       Intermediate     properties                      and logistics
  supply)        Vendor items
                                     product

                                                    (Q11)             (Q12)
                     (Q9)            (Q10)        Application      Commercial         (Q13)
 Down steam                                        Service           service
                     Tyre             Tyre                                         Relationship
(after supply)
                 processability   Performance




                                                                                                   22
Quality First
                                                        Demonstrating Quality First:
                                                    Investing in Technology & Facilitates
Before Economic
   Reforms,
 Production
    came
     first
                                         Technology            Before                       Now


                                           Yarn            Conventional               Spin draw

               Education                  Weaving             Shuttle                Shuttle less
                   on
              Quality First               Dipping          Multiple , Slow        Single, High Speed

                                           Power             Elec Board          Captive Power Plant

                                           Shed            Uncontrolled            AC Conditioning

                                        Flooring and
                                                                Old                 Epoxy Flooring
                                          Roofing

                              “We believe in the principles of
                               Quality First and Market In…”
                                                                                                       23
Revolutionary Equipment Design

Twisting Machine     Cabling Machine                   SADC Machine


                                             Convert 2-stage
                          WACKY IDEA         twisters uniquely to
                                             single stage




                                                  Results
  Cost: 25% of     285 parts    • Half the lead time, waste rate, power
  new twister      converted      cost, space, maintenance cost.
                                • Double the productivity

                                                                          24
Problem Solving Process



Impact of Improvement                                               Gold


                                                          Silver
                                               Blue
                                           (Officers &
                                           Supervisors)

                              Blue
                           (Workmen)



                        Problem:   Local         Business Process   Business Unit




                                                                                    25
Autonomous Maintenance

                     • Ownership of Machines People
                     • Daily Cleaning, Lubrication,
                       Abnormality Tagging and Minor
                       Corrections
                     • Knowledge on machine parts,
                       operation, process and inspection




         Machine                                  Machine
      cleaning and                             cleaning and
        Inspection                               Inspection



                                                              26
People Red Book
                                                     People Red Book

Diagnosis
   and
 Surveys
                          Preventive Action
                                                          Months




                          Corrective Action


                              Correction


                           Communication


                People Red Book System

 Work Related   Treatment Related   Admin Related   Personal Problems
                        People Related Issues

                                                                        27
Cherokee Wisdom
According to Cherokee tribal lore, there is an ancient formula for success :

• Clear intention : You must know what your purpose is and persist in its pursuit.
• Skillful means : You must have good methods and be skilled in their use.
• Affirmation     : Your task must have integrity, it must not clash with fundamental
                  values, it needs support from the tribe and from your own heart.


                                            Clear intention




                                              Successful
                                                work



                           Skillful means                     Affirmation


                                                                            - From Peter Scholtes




                                                                                                    28
TQM Triangle

                         (Customer Focus)
                              Quality




                             Leadership

                         1. Mobilise everyone
                             to create value
                              for customers
                          2. Sense reality by
                               being at the
                                workplace


Systematic Improvement                           All one team
   (Process Focus)                              (People Focus)

                                                                 29
SRF TQM FRAMEWORK

                          Our Own Unique TQM Framework
                       • Integrates Principles, Methods,
                         Systems and Tools
                       • Integrates Productive Maintenance
                         and Toyota Production System


                            • The Way We Do Think and Do
                              Things
                            • The Way We Manage




                                       • The “Results” that
                                         we want to achieve




“People satisfy customers efficiently.”
                                                              30
Diagnosis - Five Stage Capability Model
                                                 Vision

    Hardware
                                                Strategy

                                                Structure
                         Software


                      Human ware




                       Business Results
     Customers   Shareholders       Employees     Society


                                                            31
Diagnosis - Five Stage Capability Model

             How Effective
              are systems                                               Benchmarks are
                   for                                                  set for the rest
                                                                        of the world
                  MIT?                                  Breakthrough
                                                        improvement
                                                        and upstream
                                                                              4
                                                        management are
                                      Maintenance       institutionalised
                                      and continuous
                                      improvement             3
                                      are institutionalised

                   Basic conditions         2
                   are established


Basic conditions        1                                             A Happier World
required are
not present
     0

                                                                                           32
Planning Process
                                                                          Vision

                                   Inputs from Strategic Plans
Inputs from




                                                                              Developments
 Diagnosis




                                                                                External
                                     Annual Planning



                          Routine Plans + Breakthrough Plans

                                                  Financials

       Communication of Plans at Various Levels
                                                                                             Hierarchy
                                                                                             of Reviews


                                                               Achievement Measurement

                                                                                                      33
Improvement Hierarchy         World Class R&D Facilities




                                           Business Process
                                           Re-Engineering,
                                           Transformation,
                                            Breakthrough
           System Level                      Technology
           Improvements

                                           PSP Silver, Gold,
            Process Level                        NPD
           Improvements



                                            QCC, PSP Blue,
          Sub-Process Level                      TPM
            Improvements


           Activity Level
                                            5S,AM, Kaizens
           Improvements



                                                             34
Constant Training and Communication




Some of the key Topics:

•   TQM Basics
•   About Company , Products , Process, Customers , Suppliers
•   5S, Kaizens, QCC, AM
•   PSP, Lean, TPM, DOE
•   Knowledge and Skill Improvements
•   Leadership, Team working

                                                                35
Improvement Hierarchy
         Kaizen Week     QCC Day        AM Day        DM Week       5S Week
 Plan     13-17th June   18-22nd July   17-21st Oct   14-18th Nov   23-27th Jan

Actual    13-17th June   18-22nd July   17-21st Oct




                                                                                  36
Glimpses of External Competitions




                            •   80 external accolades during
                                2010-11
                            •   Already 46 external accolades in
                                H1 of 2011-12




                                                               37

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TQM Strategy for Continual Improvements – the SRF Way” by S. Illango (Associate Vice President-TQM, SRF)

  • 1. TQM Strategy for Continual Improvements – the SRF Way 3rd Continual Improvement and Innovation Symposium DQG, Dubai S. Ilango Associate Vice President - TQM 17th Nov 2011
  • 2. Backbone of our TQM Journey We are what we repeatedly do…. EXCELLENCE, therefore, is not an act but a HABIT - Aristotle 2
  • 3. Contents of this Presentation  About SRF  The Deming Challenge Early Phase: 1991-1999 Momentum Phase: 2000-2004  TQM - for Continual Improvements TQM Models TQM Practices  Results 3
  • 5. SRF – at a glance A multi-business manufacturing entity India, Thailand, UAE and South Africa 12 (nine in India) 800 million USD 5500 globally 75 countries 5
  • 6. Products SRF Manufactures CB Refrigerant Gases CMS Yarn Griege Fabric TTB EPB Dipped Fabric EP - Chips PFB Packaging Film Belting Fabric Coated Fabric Fishnet Twine 6
  • 7. Diverse applications TTB CB PFB EPB Touching your lives every day 7
  • 8. Present in four countries Bhiwadi Pantnagar Kashipur Gwalior Dubai Dahej Thailand Indore Thailand Trichy Business TTB Manali CB Port Elizabeth Gummidipoondi PFB EPB 8
  • 9. Global Foot Prints for SRF Products Meeting requirements of customers in more than 75 countries 9
  • 10. SRF – Proud Winner of Deming Application Prize 10
  • 12. How TQM was chosen as SRF Management Way How TQM was chosen Negative forces Positive forces Economic reforms from 1991 Adverse union relationship • Import of tyrecord fabric • Possible closure • QC Circles born 1981 and ended 1987 Opportunity to become World class Exposure to Denso Low desire for change of Management way TQM programme for Top Management at JUSE • Any way we are making good profit TQM Way Chosen 12
  • 13. TQM Introduction: Early Phase: 1991-99 JUSE Program – attended by TOP Management Decision to adopt TQM Creation of TQM Cell Communication from Chairman Design of TQM Frame Work TQM Education 5S Training and Introduction 13
  • 14. TQM Introduction: Momentum Phase: 2000-04 14 Elements of Quality Quality First Approach Modernization - Technology Breakthrough Equipment Design 5S, Kaizens People Development and QCC and PSP Involvement Maintenance Practices People Red Book Daily Management Strengthening System Policy Management Management Diagnosis 14
  • 15. TQM – The SRF Way , for Continual Improvements 15
  • 16. Continual Improvement Framework Cherokee Wisdom Design of TQM Frame Work Management Diagnosis Annual Planning Improvement Hierarchy Constant Training and Communication People Participation Initiatives – Internal People Participation Initiatives - External ARC- Acknowledgement , Recognition and Celebrations 16
  • 17. He who has a hundred miles to walk should reckon ninety as half the journey. Thank You
  • 18. Transformation Model Sensei Master (Truth sayer) Guru Leap of Faith Cultural change Action Awareness Attitude Theory-in-use — adapted from Don Wheeler 18
  • 19. Message from the thenVice-chairman Message from the then Vice-Chairman 1992 It is vital that SRF builds up its strengths and becomes a world class company, able to compete with the world’s best. TQM is a means to that end. The road to Total Quality will be a long one, spanning many years. In fact, over the next nine months, we are simply going to prepare ourselves to introduce TQM. Arun Bharat Ram (Chairman and Managing Director) 19 19
  • 20. Constant Training and Communication 5S Training Kaizen Training Program Basic TQM Training Program Control Points Training Program AM Training Program PSP Training Program Training Action 20
  • 21. Progress of 5S Arrangement for all items Gangway Markings APC Training 5S Introduction – Mass Cleaning View of Stores Filing System Factory – Internal View 5S – Coordinator’s training Factory External View 5S – Introduction of Trophies 5S Recognitions 21
  • 22. 14 Dimensions of Quality (Q3) (Q0) (Q1) (Q2) Sign off for Upstream QA Product Product Preparation for mass production mass planning development production (Q6) (Q7) Down stream (Q5) Physical Roll rating (Q8) Packing (Q4) QA (before Intermediate properties and logistics supply) Vendor items product (Q11) (Q12) (Q9) (Q10) Application Commercial (Q13) Down steam Service service Tyre Tyre Relationship (after supply) processability Performance 22
  • 23. Quality First Demonstrating Quality First: Investing in Technology & Facilitates Before Economic Reforms, Production came first Technology Before Now Yarn Conventional Spin draw Education Weaving Shuttle Shuttle less on Quality First Dipping Multiple , Slow Single, High Speed Power Elec Board Captive Power Plant Shed Uncontrolled AC Conditioning Flooring and Old Epoxy Flooring Roofing “We believe in the principles of Quality First and Market In…” 23
  • 24. Revolutionary Equipment Design Twisting Machine Cabling Machine SADC Machine Convert 2-stage WACKY IDEA twisters uniquely to single stage Results Cost: 25% of 285 parts • Half the lead time, waste rate, power new twister converted cost, space, maintenance cost. • Double the productivity 24
  • 25. Problem Solving Process Impact of Improvement Gold Silver Blue (Officers & Supervisors) Blue (Workmen) Problem: Local Business Process Business Unit 25
  • 26. Autonomous Maintenance • Ownership of Machines People • Daily Cleaning, Lubrication, Abnormality Tagging and Minor Corrections • Knowledge on machine parts, operation, process and inspection Machine Machine cleaning and cleaning and Inspection Inspection 26
  • 27. People Red Book People Red Book Diagnosis and Surveys Preventive Action Months Corrective Action Correction Communication People Red Book System Work Related Treatment Related Admin Related Personal Problems People Related Issues 27
  • 28. Cherokee Wisdom According to Cherokee tribal lore, there is an ancient formula for success : • Clear intention : You must know what your purpose is and persist in its pursuit. • Skillful means : You must have good methods and be skilled in their use. • Affirmation : Your task must have integrity, it must not clash with fundamental values, it needs support from the tribe and from your own heart. Clear intention Successful work Skillful means Affirmation - From Peter Scholtes 28
  • 29. TQM Triangle (Customer Focus) Quality Leadership 1. Mobilise everyone to create value for customers 2. Sense reality by being at the workplace Systematic Improvement All one team (Process Focus) (People Focus) 29
  • 30. SRF TQM FRAMEWORK Our Own Unique TQM Framework • Integrates Principles, Methods, Systems and Tools • Integrates Productive Maintenance and Toyota Production System • The Way We Do Think and Do Things • The Way We Manage • The “Results” that we want to achieve “People satisfy customers efficiently.” 30
  • 31. Diagnosis - Five Stage Capability Model Vision Hardware Strategy Structure Software Human ware Business Results Customers Shareholders Employees Society 31
  • 32. Diagnosis - Five Stage Capability Model How Effective are systems Benchmarks are for set for the rest of the world MIT? Breakthrough improvement and upstream 4 management are Maintenance institutionalised and continuous improvement 3 are institutionalised Basic conditions 2 are established Basic conditions 1 A Happier World required are not present 0 32
  • 33. Planning Process Vision Inputs from Strategic Plans Inputs from Developments Diagnosis External Annual Planning Routine Plans + Breakthrough Plans Financials Communication of Plans at Various Levels Hierarchy of Reviews Achievement Measurement 33
  • 34. Improvement Hierarchy World Class R&D Facilities Business Process Re-Engineering, Transformation, Breakthrough System Level Technology Improvements PSP Silver, Gold, Process Level NPD Improvements QCC, PSP Blue, Sub-Process Level TPM Improvements Activity Level 5S,AM, Kaizens Improvements 34
  • 35. Constant Training and Communication Some of the key Topics: • TQM Basics • About Company , Products , Process, Customers , Suppliers • 5S, Kaizens, QCC, AM • PSP, Lean, TPM, DOE • Knowledge and Skill Improvements • Leadership, Team working 35
  • 36. Improvement Hierarchy Kaizen Week QCC Day AM Day DM Week 5S Week Plan 13-17th June 18-22nd July 17-21st Oct 14-18th Nov 23-27th Jan Actual 13-17th June 18-22nd July 17-21st Oct 36
  • 37. Glimpses of External Competitions • 80 external accolades during 2010-11 • Already 46 external accolades in H1 of 2011-12 37