5. CASE BRIEF
1959 - Xerox 914 Introduced
1960 - Sold all it could produce
1970s - Its ROA was as low as 20%
Strong patents
Growing market
Little competition
No focus on customers
6. CASE BRIEF
1970s - IBM & Kodak entered the high
volume copier’s (Xerox) market
1980 - Xerox market share fallen less
than 50%
Xerox ignored, which the Japanese
companies concentrated
High Quality
Low volume copiers
7. CASE BRIEF
1983 - was predicted that Xerox will
be closed for $2 billion due to
Rework
Scrap
Excessive inspection
Lost business
Other problems
8. CASE BRIEF
1983 - As compared to competitors,
Xerox had
9 times suppliers
2 times employees
Twice the cycle times
10 times rejects
7 times manufacturing defects
10. CASE BRIEF
1983 - David T Kearns, President
planned long range quality strategy
Bench marking
Team formation
TQM approach
Wrote TQM policy
LEADERSHIP THROUGH QUALITY
11. LEADERSHIP THROUGH
QUALITY
Objectives
To instill, Quality for all
To ensure, Satisfaction for all
To establish, Quality way of life
Four goals are
Customer
Employee
Business
Process
12. LEADERSHIP THROUGH
QUALITY
Brought changes in
Product planning
Distribution
Establishing unit objectives
Focus on customer
13. LEADERSHIP THROUGH
QUALITY
Benchmarking, nearly 200 processes from non-
competitive companies
Cummins Engine – Production scheduling
LL Bean – Distribution system
American Express – Billing system
Measuring customer satisfaction
40,000 mails surveyed
Seeking feedback on
Equipment performance, Sales, Service &
Administrative support
14. LEADERSHIP THROUGH
QUALITY
Equal training at all levels world
wide, in quality principles, starting
from top management
In 5 years, 4 million hours with more than
$125 million all employees had received
quality related training
In 1988 – 79% were involved in Quality
improvement teams
15. OTHER ISSUES
Xerox worked with suppliers, to give long term
contracts
Implementing statistical methods
Total quality process
JIT inventory concept
Employee relations
Being role model
Promoted leadership
Reward & recognition (team work & quality)
Manager become coaches
16. IMPACTS OF LEADERSHIP
THROUGH QUALITY
Reject rates become 300 PPM (10,00,000)
Suppliers become defect free (30 US suppliers)
Suppliers reduced to 500 (from 5,000)
Purchase cost reduced by 45%
Manufacturing cost dropped by 20%
Product development time decreased by 60%
Overall product quality improved by 93%
17. THE PATH TO
TRANSFORMATION
Projects will be selected based on value creation
opportunity (ROIC/Economic Profit) with number of
projects in process controlled
Adopt a consistent financial results tracking approach as
determined by deployment team and the financial
organization
Deploy and train resources in roles as defined (Full Time
Black Belts, Full Time Deployment Managers, Sponsors,
Green Belts)using consistent training
18. THE PATH TO
TRANSFORMATION
Assign demonstrated top performers to the full-time
roles
Adopt the defined organizational structure to enable
success
Operations leadership will be engaged in the process
and will integrate Lean Six Sigma into daily business
operations
Commit at least 0.5% of employee population as Black
Belts in ‘03 and another 0.5% in ’04 to achieve critical
mass towards our transformation
22. SIX SIGMA
as a business process that allows companies
to drastically improve their bottom line by
designing and monitoring everyday business
activities in ways that minimise waste and
resources while increasing customer
satisfaction by some of its proponents
also be described as an improvement
programme for reducing variation, which
focuses on continuous and breakthrough
improvements.
23. SIX SIGMA
the major components for a successful
six sigma implementation are
Management involvement
Organisation
Infrastructure
Training and
Statistical tools.
24. SIX SIGMA
METHODOLOGY
Define. Define which process or product that needs improvement.
Define the most suitable team members to work with the
improvement. Define the customers of the process, their needs and
requirements, and create a map of the process that should be
improved.
Measure. Identify the key factors that have the most influence on
the process, and decide upon how to measure them.
Analyse. Analyse the factors that need improvements.
Improve. Design and implement the most effective solution. Cost-
benefit analyses should be used to identify the best solution.
Control. Verify if the implementation was successful and ensure that
the improvement sustains over time.
25. LEAN
Lean is about controlling the resources in accordance with
the customers’ needs and to reduce unnecessary waste
it is generally understood to represent a systematic
approach to identifying and eliminating elements not
adding value to the process. Consequences of this are
striving for perfection and a customer-driven pull of the
process.
A systematic approach to identifying and eliminating
waste through continuous improvement, flowing the
product at the pull of the customer in pursuit of
perfection
26. LEAN
METHODOLOGY
Understanding customer value. Only what the
customers perceive as value is important.
Value stream analysis. the next step is to analyse the
business processes to determine which ones actually
add value. If an action does not add value, it should be
modified or eliminated from the process.
Flow. Focus on organising a continuous flow through
the production or supply chain rather than moving
commodities in large batches.
27. LEAN
METHODOLOGY
Pull. Demand chain management prevents from
producing commodities to stock, i.e. customer
demand pulls finished products through the
system.
Perfection. The elimination of non-value-adding
elements (waste) is a process of continuous
improvement. “There is no end to reducing time,
cost, space, mistakes, and effort”.
28. LEAN SIX SIGMA
In 2003
More than 1000 senior leaders
trained
Six Sigma implemented from
manufacturing to supply chain into
all business areas
LEAN SIX SIGMA IS NOT THE ONLY
ANSWER BUT IT’S A SIGNIFICANT
PART OF THE EQUATION
31. XEROX LEAN SIX SIGMA
VIEWED IN THREE
DIMENSIONS
Projects and Results
Culture Change
Leadership Development
Xerox Lean Six Sigma is a significant part of the
equation for moving Xerox from a good
company to a truly great company again
35. QUALITY
IS THE
RESPONSIBILITY
OF EVERY
XEROX EMPLOYEE
BASIC PRINCIPLE
36. CRISIS AND QUALITY
RENEWAL
1990 - Xerox grew at steady state
At the end of the century
Technological changes
Decreased quality focus
New quality initiative
Lean Six Sigma
Emphasis on behaviors and
Leaderships to achieve performance
excellence
37. LEAN SIX SIGMA
2003 - Established Lean Six Sigma,
includes a dedicated infrastructure and
resource commitment to focus on
Critical customer opportunities
Significant training of employees
Black belt improvement specialists
Value driven project selection process
Customer focus with linkage to
strategies and objectives
38. BASIC PRINCIPLE
Customer focused employees
Team work
Alignment with objectives
Use of quality tools
Benchmarks to enable rapid
changes
39. BASIC PRINCIPLE
Key components are
Performance excellence process
DMAIC process
Market trends & benchmarking
Behaviors & Leadership
40. BASIC PRINCIPLE
Communication of direction
Accountability of objectives
Statistical methods, Lean flow methods
and other process management skills
External perspective includes
Market trends and benchmarking
Sharing of information
Flexible to changes
41. WE
DELIVER
QUALITY AND EXCELLENCE
IN
ALL WE DO
BASIC PRINCIPLE
43. Contrast Leadership for quality and
Lean Six Sigma as quality initiatives
for Xerox. How did their motivations
differ? What differences or
similarities are evident in the
principles behind these initiatives
and the way in which they were
implemented?
Q UESTION 1
44.
45. TQM LEAN SIX SIGMA
Origin The quality The quality evolution in Japan,
evolution in Motorola & Toyota
Japan
Theory Focus on No defects & Remove waste
customers
Process view Improve and Reduce variation and improve
uniform processes & Improve flow in processes
processes
Approach Let Project management
everybody
be
committed
Methodologies Plan, do, DMAIC & Understanding customer
study, act value, value stream, analysis, flow,
pull, perfection
46. TQM LEAN SIX SIGMA
Tools Analytical and Advanced statistical and analytical tools
statistical tools
Primary Increase Save money & Reduce lead time
effects customer
satisfaction
Secondary Achieves Achieves business goals and improves
effects customer loyalty financial performance
and improves Reduces inventory, increases
performance productivity and customer satisfaction
Criticism No tangible Does not involve everybody, does not
improvements, improve customer satisfaction, does
resource- not have a system view & Reduces
demanding, flexibility, causes congestion in the
unclear notion supply chain, not applicable in all
industries
47.
48. What lessons might this
experience – particularly
in responding to the new
crisis – have for other
organizations?
Q UESTION 2
49. A NSWER 2
The main criticism against TQM is that there
is a widespread confusion concerning what
TQM really means, a number of failures of
organisations trying to implement TQM have
been documented.
A number of organisations have put a large
amount of resources on implementing TQM,
but with no tangible improvements achieved.
50. A NSWER 2
There is a difficulty in six sigma programmes to
exceed the customer’s needs and hence
increase the customer satisfaction. To avoid this
problem some companies use voice of the
customer tools in their define phase.
Six Sigma programmes fail to create conditions
in order to involve everyone, which is more
emphasised in the TQM literature.
51. A NSWER 2
In six sigma training programmes, one can only
start a project which gives a certain amount of
savings. This project is often executed in the
department of the project members.
The project normally leads to an improvement in
the department of the project members, but due
to the performed change another department can
experience deterioration. Six sigma is sometimes
accused for not having a system view.
52. A NSWER 2
The main criticism against lean is the lack of
flexibility the concept offers and that the
concept actually can lead to delays for the
customers.
Lean, which was developed for
manufacturing and distribution situations, is
applicable in all range of areas, including both
manufacturing and service industries.
53. Discuss the meaning of
“Quality is a race without
a finish line” What is its
significance to Xerox, or
to any organization?
Q UESTION 3
54. QUALITY
“AS YOU GET BETTER,
SO DOES THE COMPETITION”
55. “I N THE RACE FOR QUALITY,
THERE IS NO FINISH LINE !”
D AVID T. K EARNS
Quality also has it’s price and managing
talent does mean that one should have
best practices in place within your
organization - Tall order as many line
managers responsible to work with HR
on this, do not persist with the process
or they procrastinate and miss the
opportunity.
56. “I N THE RACE FOR QUALITY,
THERE IS NO FINISH LINE !”
D AVID T. K EARNS
Talent Management starts with attracting
and then recruiting the best skill available.
We should clearly differentiate between
recruiting for potential and / or for skill.
Each person within the organization should
have a clearly defined performance
balanced scorecard stipulating the expected
deliverables of that position.
57. “I N THE RACE FOR QUALITY,
THERE IS NO FINISH LINE !”
D AVID T. K EARNS
Individual competencies should be
measured against the deliverables prior to
any appointment being made.
A clear career development path should be
noted on the balanced scorecard and
coaching should take place regularly to
ensure growth. It is during these coaching
sessions that additional talent will be
discovered and explored.
58. “I N THE RACE FOR QUALITY,
THERE IS NO FINISH LINE !”
D AVID T. K EARNS
Training is pivotal to developing talent. It is only
when we have developed the talent that we can
manage it! In order to manage talent, the leader
must be fully aware of the strategic direction of the
organization and department.
Developing people should then be aligned with this
expected outcome. Should a member of staff be
incapable of delivering the expected, it should be
addressed immediately and if necessary, a transfer to
a more appropriate department should be initiated.
59. “I N THE RACE FOR QUALITY,
THERE IS NO FINISH LINE !”
D AVID T. K EARNS
Should a member of staff be unwilling
to deliver the required output, a
disciplinary process may be an option
Remember this is also part of
managing talent!.
