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DEMING AWARD
Nirma University
Group- 12
Khushboo Devpura (134230)
Kiran Jain (134231)
Jagrity Meharia (134222)
• The Deming prize, established in December 1950
in honour of W. Edwards Deming, was originally
designed to reward Japanese companies for
major advances in quality improvement. Over the
years it has grown, under the guidance
of Japanese Union of Scientists and
Engineers (JUSE) to where it is now also available
to non-Japanese companies.
• Two categories of awards are made annually, the
Deming Prize for Individuals and the Deming
Application Prize.
India Receiving Deming Prize
• 1998
• Sundaram-Clayton Limited, Brakes Division
• 2001
• Sundaram Brake Linings Limited.
• 2002
• TVS Motor Company Limited
• Hi-Tech Carbon GMPD
• 2003
• Brakes India Limited., Foundry Division
• Mahindra and Mahindra Limited, Farm Equipment Sector
• Rane Brake Lining Limited
• Sona Koya Steering Systems Limited
• Birla Cellousic, Kharach-A Unit of Grasim Industries Limited (India)
• 2004
• SRF Limited., Industrial Synthetics Business
• Lucas TVS Limited
• Indo-Gulf Fertilisers Limited
• 2005
• Krishna Maruti Limited, Seat Division
• Rane Engine Valves Limited
• Rane TRW Steering Systems Limited, Steering Gear Division
• 2007
• Asahi India Glass Limited, Auto Glass Division (India)
• Rane (Madras) Limited (India)
• Reliance Industries Limited, Hazira Manufacturing Division (India)
• 2008
• Tata Steel Limited (India)
• 2010
• National Engineering Industries Limited (India)
• 2011
• Sanden Vikas (India) Limited
• 2012
• Tata Steel Limited
• 2013
• Rane Brake Lining Limited
RANE BRAKE LINING LTD
Mission & Value
• Provide superior products and services to our
customers and maintain market leadership.
• Evolve as an institution that serves the best
interests of all stakeholders.
• Pursue excellence through total quality
management.
• Ensure the highest standards of ethics and
integrity in all our actions.
Vision
• To be a global supplier of choice in friction
material industry through technological
innovation and total quality.
Company Profile
• The Rane group was established in 1929, comprising of
seven companies with twenty five plants dedicated to
automobile component manufacturing. It symbolizes the
successful integration of global quality with indigenous
expertise. It employs over 5200 highly trained personnel
and has an annual sales turnover (2012-13) of about INR
29230 Million (~ US $ 538 million).
• Rane group manufactures a comprehensive range of
automobile components like hydraulic power steering
systems, manual steering & suspension systems, valve train
components, friction material products, steering columns &
electric power steering, seat belt systems and die casting
products.
Before Implementing TQM
 Low levels of growth
 Low levels of new product introduction and
manufacturing innovation.
 Only producing parts of specification
 Quality was ensured by inspection
 All key decisions being made by top management
 Focus on adhering to the rules of operation rather than
solving customer problems .
 Contacts with suppliers were managed by sales
managers who were the only channel between the
company and its customers
 Defect rates were high
Cont’d…
 Lead times to solve customer problems were long
 High level of plant rejections and customer returns.
 Statistical tools were used occasionally
 No systematic initiative for improvements
 Review and analysis were not carried out
 No structured training programme for operators.
 Total employee involvement did not exist
 There was a distinct lack of awareness of the customer
needs.
Process established
 Customer Satisfaction
 Defining the role of all the workers (role clarity)
 Development of new product development (NPD) system
 Setting up the review mechanism
 Process for strategy and strategy implementation
 Improvements in human resource practices
 Practice PDCA (plan, do, check, act) in all activities, systems, and processes.
After Implementing TQM
• IN PROCESS
 Continual improvement potential
 Customer line rejections dropped
 Plant in process rejections decreased
 Number of employee suggestions increased
speed of response to engineering specification,
customer requests etc.
 Decreased error rate
 Increased the acceptance rate
Cont’d…
• IN Departments
 Employees had role clarity
 Small improvements were permitted but large changes
required top management intervention.
 Customer contacts are viewed as opportunities and closeness
with customers is encouraged
 Employees are regarded as key resources with large
investments in human capital
 Investment in employees
 Focus on relationship quality
 Sales per employee went up
Reviews
Title / Subject Purpose Reviewed
by
Frequency
Quality Review To review quality
performance
President Monthly
Quality Review To review quality
performance
Plant Heads Monthly
• http://kenathjayashankarmenon.wordpress.co
m/2013/11/14/rane-brake-lining-achieves-
deming-grand-prize-2013/
• http://www.autocarpro.in/ap/features/3630/
breaking-news-rane-brake-lining-rsb-
transmissions-bag-highly-coveted-deming-
honours
TATA steel
Practices adopted to achieve the
award
• Tata Steel has been practicing TQM since the late 1980s
• Initiated activities such as
 Quality circles
 ISO certification
 Juran methods
• Won the JRD QV Award in the year 2000
• Went through the Deming process
Deming Process
Create a constant
purpose toward
improvement
Adopt the new
philosophy
Stop depending
on inspections
Use a single
supplier for any
one item
Improve
constantly and
forever.
Use training on
the job
Implement
leadership.
Eliminate fear.
Break down
barriers between
departments.
Get rid of unclear
slogans
Eliminate
management by
objectives
Remove barriers
to pride of
workmanship
Implement
education and
self-improvement
Make
"transformation"
everyone's job
Cont..
• In 2005, conducted a TQM diagnosis along with the
JUSE team; that gave them status of their TQM
implementation
• They specifically looked at:
 Strategic aspects or policy management
 Daily management
 People involvement
Challenges and hurdles
• Create a mindset that looks at improvement activities
as essential for achieving target and goals
• Creating this understanding across the organization
• Tata steel had 6 examination units-
- To create guidelines and references manuals for each
unit to have uniformity and alignment
How is Deming award criteria different
from the Tata Business Excellence
Model
Business Excellence
How is Deming award criteria different
from the Tata Business Excellence
Model
• Difference is on focus rather than the content
• Deming awards look for application which runs vertically
cutting across processes/items
• TBEM looks at processes which are applied horizontally
• TBEM is about testing the application rather than only the
approach
• Deming looks at applying the basic principle of TQM
Mahindra & Mahindra Limited
(M&M) TQM and Deming award
About M&M
• It is one of the largest automobile
manufacturers by production in India and a
subsidiary of Mahindra Group conglomerate.
• It is ranked #21 in the list of top companies of
India in Fortune India 500 in 2011.
• Mahindra & Mahindra was set up as a steel
trading company in 1945.
• 1,44,000 employees in over 100 countries
across the globe.
Background & History
• Multinational automaker headquartered in
Mumbai, Maharashtra, India.
• The company was founded in 1945 in
Ludhiana as Mahindra & Mohammed by
brothers K.C. Mahindra and J.C. Mahindra and
Malik Ghulam Mohammed.
• The company changed its name to Mahindra
& Mahindra in 1948.
Core Purpose
• Indians are second to none in the world. The
founder of our nation and of our company
passionately believed this. We will prove that
right by believing in ourselves and by making
M&M limited known world wide for the quality of
its products and services.
• We don’t have a group wide mission statement.
Our core Purpose is what makes all of us want to
get up and come to work in the morning.
-Anand G Mahindra
Core Values
• Good Corporate Citizenship Long term success
Ethical business standards.
• Professionalism Best people for the job
innovation and well reasoned risk taking.
• Customer First Respond to the changing needs
and expectations.
• Quality focus First time right.
• Dignity of the individual
Quality Policy
“ Customer first and quality focus are our core values. For
this, we shall respond to the changing needs and
expectation of the customers speedily and effectively.”
Achieved By:
1. Understanding customer requirements
2. Involvement of suppliers and business partners
3. Setting the annual business objectives aligned with
our vision
4. Total employee involvement
5. Adopting a process approach
6. Delivering ‘first time right’ products.
Previous to TQM (1990)
• Tractor division was sellers market
• Focus was more on quality
• No emphasis on development of new models
• Manufacturing activity was more inspection oriented
detection
• Interaction with suppliers purely need based
• Sales and service activity lacked standardization
• Rework rejection percentages were high
• Employee involvement in improvement activity was
very limited
• Mindset, factory layout, equipment -- Road blocks
TQM Journey with M&M
The TQM journey was in three phases:
1. Introduction phase from 1900 – 94
2. Promotion phase from 1995 – 99
3. Development phase from 2000 onwards
Introduction phase (1900 – 94)
In the first phase objective were.
1. Improving manufacturing quality through process
control.
2. Improving the quality of bought out components and
3. Increasing productivity and reduce the cost of poor
quality (COPQ) by Solving chronic cross functional
quality problems.
Introduction of initiatives like Juran’s process of quality
improvement (JQI) (JURAN’s trilogy), Statistical process
control (SPC), Supplier support activity and business
process reengineering (BPR) in manufacturing.
Promotion phase in 1995 – 99
• The focus was not only the standardization of
all operations as per international guidelines,
but also to improvement upon them.
• Certifications ISO 9000 and automotive sector
specific standard QS 9000 were obtained
• Up gradation of manufacturing facilities
• Initiation of Deming prize guidelines
Development phase (2000 onwards)
• Improvement in core process like new product
development, manufacturing, supplier
management and sales and customer operations
• Introduction of policy development daily work
management technique
• Certification to environment management system
standards ISO 14001
• Continuous improvement activity stepped up to
touch employee involvement of 100 percent
during period
After Benefits
Due to TQM
• Reduction in rejection at suppliers end as
effects well at receipt stage.
• Reduction in no of consumer complains
• Increased productivity, customer satisfaction,
employee involvement in continuous
improvement
• Introduction of new models – 15 models in
three years
Cont’d
• Won the Japan quality medal in 2007, the only
tractor company worldwide to be bestowed
this honours.
• First tractor company globally to win the
Deming application prize in 2003 from JUSE.
• Total productive maintenance (TPM)
Excellence award first category form Japanese
institute of plant maintenance (JIPM) for the
company’s automotive division
Thank you

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Deming award , Rane Group, Mahindra and Mahindra

  • 1. DEMING AWARD Nirma University Group- 12 Khushboo Devpura (134230) Kiran Jain (134231) Jagrity Meharia (134222)
  • 2. • The Deming prize, established in December 1950 in honour of W. Edwards Deming, was originally designed to reward Japanese companies for major advances in quality improvement. Over the years it has grown, under the guidance of Japanese Union of Scientists and Engineers (JUSE) to where it is now also available to non-Japanese companies. • Two categories of awards are made annually, the Deming Prize for Individuals and the Deming Application Prize.
  • 3. India Receiving Deming Prize • 1998 • Sundaram-Clayton Limited, Brakes Division • 2001 • Sundaram Brake Linings Limited. • 2002 • TVS Motor Company Limited • Hi-Tech Carbon GMPD
  • 4. • 2003 • Brakes India Limited., Foundry Division • Mahindra and Mahindra Limited, Farm Equipment Sector • Rane Brake Lining Limited • Sona Koya Steering Systems Limited • Birla Cellousic, Kharach-A Unit of Grasim Industries Limited (India) • 2004 • SRF Limited., Industrial Synthetics Business • Lucas TVS Limited • Indo-Gulf Fertilisers Limited
  • 5. • 2005 • Krishna Maruti Limited, Seat Division • Rane Engine Valves Limited • Rane TRW Steering Systems Limited, Steering Gear Division • 2007 • Asahi India Glass Limited, Auto Glass Division (India) • Rane (Madras) Limited (India) • Reliance Industries Limited, Hazira Manufacturing Division (India) • 2008 • Tata Steel Limited (India)
  • 6. • 2010 • National Engineering Industries Limited (India) • 2011 • Sanden Vikas (India) Limited • 2012 • Tata Steel Limited • 2013 • Rane Brake Lining Limited
  • 7. RANE BRAKE LINING LTD Mission & Value • Provide superior products and services to our customers and maintain market leadership. • Evolve as an institution that serves the best interests of all stakeholders. • Pursue excellence through total quality management. • Ensure the highest standards of ethics and integrity in all our actions.
  • 8. Vision • To be a global supplier of choice in friction material industry through technological innovation and total quality.
  • 9. Company Profile • The Rane group was established in 1929, comprising of seven companies with twenty five plants dedicated to automobile component manufacturing. It symbolizes the successful integration of global quality with indigenous expertise. It employs over 5200 highly trained personnel and has an annual sales turnover (2012-13) of about INR 29230 Million (~ US $ 538 million). • Rane group manufactures a comprehensive range of automobile components like hydraulic power steering systems, manual steering & suspension systems, valve train components, friction material products, steering columns & electric power steering, seat belt systems and die casting products.
  • 10. Before Implementing TQM  Low levels of growth  Low levels of new product introduction and manufacturing innovation.  Only producing parts of specification  Quality was ensured by inspection  All key decisions being made by top management  Focus on adhering to the rules of operation rather than solving customer problems .  Contacts with suppliers were managed by sales managers who were the only channel between the company and its customers  Defect rates were high
  • 11. Cont’d…  Lead times to solve customer problems were long  High level of plant rejections and customer returns.  Statistical tools were used occasionally  No systematic initiative for improvements  Review and analysis were not carried out  No structured training programme for operators.  Total employee involvement did not exist  There was a distinct lack of awareness of the customer needs.
  • 12. Process established  Customer Satisfaction  Defining the role of all the workers (role clarity)  Development of new product development (NPD) system  Setting up the review mechanism  Process for strategy and strategy implementation  Improvements in human resource practices  Practice PDCA (plan, do, check, act) in all activities, systems, and processes.
  • 13.
  • 14. After Implementing TQM • IN PROCESS  Continual improvement potential  Customer line rejections dropped  Plant in process rejections decreased  Number of employee suggestions increased speed of response to engineering specification, customer requests etc.  Decreased error rate  Increased the acceptance rate
  • 15. Cont’d… • IN Departments  Employees had role clarity  Small improvements were permitted but large changes required top management intervention.  Customer contacts are viewed as opportunities and closeness with customers is encouraged  Employees are regarded as key resources with large investments in human capital  Investment in employees  Focus on relationship quality  Sales per employee went up
  • 16. Reviews Title / Subject Purpose Reviewed by Frequency Quality Review To review quality performance President Monthly Quality Review To review quality performance Plant Heads Monthly
  • 19. Practices adopted to achieve the award • Tata Steel has been practicing TQM since the late 1980s • Initiated activities such as  Quality circles  ISO certification  Juran methods • Won the JRD QV Award in the year 2000 • Went through the Deming process
  • 20. Deming Process Create a constant purpose toward improvement Adopt the new philosophy Stop depending on inspections Use a single supplier for any one item Improve constantly and forever. Use training on the job Implement leadership. Eliminate fear. Break down barriers between departments. Get rid of unclear slogans Eliminate management by objectives Remove barriers to pride of workmanship Implement education and self-improvement Make "transformation" everyone's job
  • 21. Cont.. • In 2005, conducted a TQM diagnosis along with the JUSE team; that gave them status of their TQM implementation • They specifically looked at:  Strategic aspects or policy management  Daily management  People involvement
  • 22. Challenges and hurdles • Create a mindset that looks at improvement activities as essential for achieving target and goals • Creating this understanding across the organization • Tata steel had 6 examination units- - To create guidelines and references manuals for each unit to have uniformity and alignment
  • 23. How is Deming award criteria different from the Tata Business Excellence Model Business Excellence
  • 24. How is Deming award criteria different from the Tata Business Excellence Model • Difference is on focus rather than the content • Deming awards look for application which runs vertically cutting across processes/items • TBEM looks at processes which are applied horizontally • TBEM is about testing the application rather than only the approach • Deming looks at applying the basic principle of TQM
  • 25. Mahindra & Mahindra Limited (M&M) TQM and Deming award
  • 26. About M&M • It is one of the largest automobile manufacturers by production in India and a subsidiary of Mahindra Group conglomerate. • It is ranked #21 in the list of top companies of India in Fortune India 500 in 2011. • Mahindra & Mahindra was set up as a steel trading company in 1945. • 1,44,000 employees in over 100 countries across the globe.
  • 27. Background & History • Multinational automaker headquartered in Mumbai, Maharashtra, India. • The company was founded in 1945 in Ludhiana as Mahindra & Mohammed by brothers K.C. Mahindra and J.C. Mahindra and Malik Ghulam Mohammed. • The company changed its name to Mahindra & Mahindra in 1948.
  • 28. Core Purpose • Indians are second to none in the world. The founder of our nation and of our company passionately believed this. We will prove that right by believing in ourselves and by making M&M limited known world wide for the quality of its products and services. • We don’t have a group wide mission statement. Our core Purpose is what makes all of us want to get up and come to work in the morning. -Anand G Mahindra
  • 29. Core Values • Good Corporate Citizenship Long term success Ethical business standards. • Professionalism Best people for the job innovation and well reasoned risk taking. • Customer First Respond to the changing needs and expectations. • Quality focus First time right. • Dignity of the individual
  • 30. Quality Policy “ Customer first and quality focus are our core values. For this, we shall respond to the changing needs and expectation of the customers speedily and effectively.” Achieved By: 1. Understanding customer requirements 2. Involvement of suppliers and business partners 3. Setting the annual business objectives aligned with our vision 4. Total employee involvement 5. Adopting a process approach 6. Delivering ‘first time right’ products.
  • 31. Previous to TQM (1990) • Tractor division was sellers market • Focus was more on quality • No emphasis on development of new models • Manufacturing activity was more inspection oriented detection • Interaction with suppliers purely need based • Sales and service activity lacked standardization • Rework rejection percentages were high • Employee involvement in improvement activity was very limited • Mindset, factory layout, equipment -- Road blocks
  • 32. TQM Journey with M&M The TQM journey was in three phases: 1. Introduction phase from 1900 – 94 2. Promotion phase from 1995 – 99 3. Development phase from 2000 onwards
  • 33. Introduction phase (1900 – 94) In the first phase objective were. 1. Improving manufacturing quality through process control. 2. Improving the quality of bought out components and 3. Increasing productivity and reduce the cost of poor quality (COPQ) by Solving chronic cross functional quality problems. Introduction of initiatives like Juran’s process of quality improvement (JQI) (JURAN’s trilogy), Statistical process control (SPC), Supplier support activity and business process reengineering (BPR) in manufacturing.
  • 34. Promotion phase in 1995 – 99 • The focus was not only the standardization of all operations as per international guidelines, but also to improvement upon them. • Certifications ISO 9000 and automotive sector specific standard QS 9000 were obtained • Up gradation of manufacturing facilities • Initiation of Deming prize guidelines
  • 35. Development phase (2000 onwards) • Improvement in core process like new product development, manufacturing, supplier management and sales and customer operations • Introduction of policy development daily work management technique • Certification to environment management system standards ISO 14001 • Continuous improvement activity stepped up to touch employee involvement of 100 percent during period
  • 36. After Benefits Due to TQM • Reduction in rejection at suppliers end as effects well at receipt stage. • Reduction in no of consumer complains • Increased productivity, customer satisfaction, employee involvement in continuous improvement • Introduction of new models – 15 models in three years
  • 37. Cont’d • Won the Japan quality medal in 2007, the only tractor company worldwide to be bestowed this honours. • First tractor company globally to win the Deming application prize in 2003 from JUSE. • Total productive maintenance (TPM) Excellence award first category form Japanese institute of plant maintenance (JIPM) for the company’s automotive division