The key challenge is to remain successful. This presentation explains could we remain competitive and successful by imbibing the culture of Customer Focus, Continuous Improvement

1. Naresh Chawla, Master Black Belt
Lean Six Sigma & Deployment Practitioner
General Manager-Consultancy & Training Division
B-102, Industrial Area, Phase-VIII, Mohali-160 059
Ph: 0172-2236187, 6541187, 9779070555 | e-mail: nareshchawla@tqmbizschool.org |
www.tqmbizschool.org

2. Biggest Challenge for business
• To remain successful
• Performance follows cyclic Path
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3. It’s a matter of past……….
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4. Competitive Reality of Our Time
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5. Key Challenges (Customer Perspective)
Reduce Improve After Sale
Improve maintenance Service
Reliability (Responsiveness) Differen-
Cost
Reduce tiation/New
Initial Cost features
Voice of Customer
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6. Key Challenges (Business Perspective)
Reduce Mitigate Improve
operating Customer Competence
cost Complaints of Employees
Reduce Cost Improve
of Inputs Margins
Voice of Business
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7. Survival Mantras
Surpassing all others
Unique
Valuable
Superior
Outstanding
The Best
Focus
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8. The frog
That’s what happens to Uh oh!
those who lose
Customer Focus
100oC
50oC
0oC
“Body temperature of frog will also start rising”
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9. Lack of Customer Focus
IBM
Served the customer the way he wanted.
Continued to do business the old way – an
example of arrogance and inertia.
Market shifted to Servers and PCs.
Badly hit & business declined.
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10. Lack of Customer Focus
Motorola
Pioneer in implementing Six Sigma
Won Malcolm Baldrige National Quality Award in
1987
Turned down AT&T proposal to shift from
Analog to Digital.
AT & T went to Nokia and rest is history
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11. Indian Examples
Brands that disappeared
Premier Padmini Car
Vijay Super Scooter
Binny Textiles
Because companies refused to change
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12. Continuous Improvement in Key
Business Metrics
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13. First Step
Translate Strategic Intent into Specific Goals
& the Actions
Competence Processes Customers Financial
Leading Indicators Lagging Indicators
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14. A Chain of Causes and Effects
How do .. who determine
shareholders
see us?
Financial Results our results.
How do
..which delight
customers
see us?
Satisfied Customers our customers...
What processes ..develop
should we Capable Processes & maintain
excel at? the processes..
Are we equipped Create the
to improve our
processes?
Competent People competence to ..
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15. Process

16. Develop people & Improve Processes
Processes
Performance
Deployed Ongoing
Objectives Improvement
Performance time
Breakthrough
Improvement
Performance time
Corrective
Action
time
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17. Three Levels of Improvement
There are different levels of improvement.
Level 1
› Keeping the processes within the specification
› Improving flaws in the processes
Level 2
› Improving the processes achieving better Quality
Level 3
› Rethink the processes achieving breakthrough
AND they are continuously needed in
parallel
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18. Three Levels of Improvement
Improvement
Levels 1, 2, 3
Level 1 Level 2 Level 3
Problem Solving Continuous Improvement Breakthrough 18

19. Key Practices
Lean
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20. Lean Six Sigma –
Faster, Better & Cheaper
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LEAN
# Days of deliveries #
Days of deliveries
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Days of deliveries Days of deliveries
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21. Potential Areas for Improvement
Low market share/Declining market
High delivery time
High BoM Cost
Service complaints/repeated complaints/ C-Sat Score
High Life cycle cost
Low reliability
Large inventories
Poor incoming quality of store items
High operation costs
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22. The Right Deployment
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23. The Right Deployment
moving from priorities
to projects to organization
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24. The Right Deployment
Cascade
priorities
goals
objectives
Translate instead of repeat
Follow up (plan & review)
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25. POLICY /
Bad Deployment OBJECTIVE
CEO/MD Level increase market share
Executive Director/COO increase market share
Plant manager increase market share
deployment
Production manager increase market share
hierarchic
Supervisor increase market share
Operator increase market share
“Repeating” TARGETS DEPLOYMENT
(output performance
indicators)
RESULTS
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26. Translation
Example
CEO/MD Level increase market share
Executive Director/COO lower cost price
Plant manager less material waste
HOD less rework
Supervisor “Just enough” material use
Operator Adherence to SOPs
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27. Client Industries
& many more…
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28. “There is no point in being fast at
doing the wrong thing”
Thanks
Naresh K Chawla, Master Black Belt
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