The document discusses Lucas-TVS, an Indian auto-components company that won the Deming Prize award. It provides details about: 1. The history and criteria of the Deming Prize award, which was established to honor Dr. William Deming and recognize top-performing Japanese companies for quality excellence. 2. Lucas-TVS's implementation of total quality management principles and consultation with quality experts to prepare for the rigorous Deming Prize examination process. 3. How winning the award led to quality stabilization, productivity and profit improvements, and higher customer satisfaction for Lucas-TVS. It also discusses the company's subsequent application for the Deming Grand Prize. 4. The key lessons that

1. Six Sigma Lean Management
Deming award winner Lucas-TVS
Presented by Group 9
12056 VENKATA SAI KRISHNA M
12059 VINCENT BOSCO MENDONCA
12132 BHARATH KUMAR M
12182 SARTHAK ROHATGI
12045 SHASHANK SHEKHAR GOSWAMI
Presented to
Dr R.Jagadeesh

2. History of the award
• Named after Dr. William Edward Deming, expert
in quality control in United States of America
• He gave a eight day lecture on Quality control to
Japan’s executives, managers, engineers and
researchers
• He also donated all his royalties to JUSE
• In his honor Kenichi Koyanagi, managing director
of JUSE, proposed an award to the top
performing companies

3. Criteria for performance excellence
• Top Management Leadership, Vision, Strategies
• TQM Frameworks
• Quality Assurance Systems
• Management Systems for Business Elements
• Human Resource Development
• Effective Utilisation of Information
• TQM Concepts and Values
• Scientific Methods
• Organisational Powers (Core Technology, Speed,
Vitality)
• Contribution to Realisation of Corporate Objectives

4. Successful companies should score
• 70 points or higher in the Executive Session
• 70 points or higher as the company average,
• excluding the Executive Session
• 50 points or higher for any examined unit of
the company

5. Some past winners
• 1970 Toyota Motor Co., Ltd.
• 1973 Nippon Electric Co., Ltd.
• 1975 Nippon Steel Corporation
• 1980 Toyota Auto Body Co., Ltd
• 1990 Aisin Seiki Co., Ltd.
• 1991 Aisin AW Co., Ltd.
• 1997 Philips Taiwan Ltd. (Taiwan)
• 2007 Mahindra & Mahindra Limited, Farm Equipment
Sector (India)
• 2011 Rane TRW Steering Systems Limited, Steering
Gear Division (India)

6. Measure of Awards
• applicant's performance against certain
criteria.
• result of quality activities
• consistency of output and others assess
conformity of output to customer
requirements

7. People responsible to give awards
International awards include:
• The EFQM Excellence Award, established in
1992 and offered by the EFQM
• Asia-Pacific Area Golden Quality Award
• The Deming Prize, established 1951
(International from 1984) and offered by the
Japanese Union of Scientists and Engineers

8. National awards are:
• The UK Excellence Award, established in 1994 and run
by the British Quality Foundation
• The Malcolm Baldrige Award, established in 1987 and
offered by the National Institute of Standards and
Technology in the USA
• The Wales Quality Award, established in 1994 and
offered by the Wales Quality Centre
• The Irish Quality Award, offered by Excellence Ireland
• Singapore's National Quality Award, established in
1994 and offered by the Singapore Productivity Board

9. The Benefits of Applying
• Accelerate your improvement efforts.
• Energize your employees
• Gain an outside perspective.
• Learn from the feedback process
• Focus on results

10. What are the disadvantages of
entering/winning an award?
• The effort: Most awards call for a considerable
amount of effort, which can be both expensive
and a serious distraction of resources.
• The conflict: Political infighting within a company
can be increased when it is suggested that the
company embarks on the award journey
• Popularity: Some award winners, such as
companies which have won The Malcolm Baldrige
Award, report an unsuspected problem.

11. When should an organization apply for a Quality Award?
There must be critically 8 factors:
1. Continuous improvement of all operations on periodic basis
2. Accurate measurement of improvements and system sensitivity
3. Comparison of strategic plans with the world’s best and rate
4. Forward integration and backward integration impacting the
operation structure
5. Quality in conversion of ideas and customers’ needs in to a
product
6. Include sales, service, and ease of maintenance that maintains
long lasting relations with the customer
7. Doing it right for the first time because prevention is better
than cure/repair
8. The level and commitment and dedication from each member
from the organization

12. How should an organization apply for a quality award?
START
Receive Deming Prize
Guide
Pre Application
consultation
TQM Diagnosis
Submission of
application and payment
of fee
Submission of
DTQMP
Document
Examination
Notification
and exam
results
Meeting with
the lead
Examiner
Pass
Failed
On Site
Examination
Failed
Announcements of
Successful
Applicants
Award
Ceremony
STOP

13. After winning the award - What next?
1. Need to adapt and transform its quality assurance system to
meet new challenges
2. To change the scope and practice of its business
3. They can to apply for the Japan Quality Medal five years after
winning the prize including the winning year
4. But as of January 2000, the period was shortened to three
years

14. ABOUT LUCAS-TVS

15. About the Award Winning Company: - Lucas – TVS
• Estd. 1961 – JV between Lucas UK and TVS India
• Lucas-TVS is the Leader in Auto Electricals in India today with
48 years’ experience in design and manufacturing
• Lucas - TVS is a TS16949 and OSHAS 18001 certified company
• Lucas-TVS, believes that quality begins and ends with the
customer
• For the company, quality is not just conformance to drawings or
specifications but ensuring customer satisfaction

16. Products and Services offered by the company
Manufacturing of:-
• Power Window Motors
• Starter for light truck gear reduction starter
• Other products and services like
1. Alternators
2. Direct drive starter
3. Engine colling
4. Wiper Motots
5. Blower fan motors
6. Electronic Ignition Coil With Ignitor
7. Compressor Motor Air Suspension
8. Electronic Spark Advance Distributor
9. Strick Ignition Coil

17. Awards Won – Year and Category
Sl No Award Won Year Category
01 National Energy Conversation 2008 Auto-Motive Sector
02 Outstanding supplier and Excellence
by Cummins India Limited
2007 Auto-Motive
03 Maruti VA – VE Award by Maruti
Udyog
2000&2006 Vendor Category
04 Outstanding overall Performance 2004 Manufacturing
05 Superior Kaizen 2004 Manufacturing
06 ACMA Technology 2004-05 Manufacturing
07 ACMA Technology 2001-02 Productivity
08 ACMA Technology 1998-99 Technology
09 FROST & SULLIVAN 2005 Manufacturing
10 MMA 2004-05 Manufacturing
11 AU – TVS 2002 House Keeping (5S)

18. Manufacturing system
• Manufacturing system is competently backed
up by an advanced Tool Room and an in house
SPM/ Process Plant manufacturing facility
• Entire organisation is firmly entrenched in the
change process and committed to CIP
(Continuous Improvement Programme)

19. TQM
• Quality Assurance methods like Advanced
Product Quality Planning, Statistical Process
Control Techniques, Effective Tool
Management System, Process Capability
Improvements, Preventive Maintenance,
Producer Control and Small Group Activities
form the backbone of the system approach
adopted

20. • Driven by the five pillars of TQM-rests on the
foundation of Total Employee Involvement, daily
management and Kaizen
• The Total Employee Involvement-program
ensures that responsibility for the company's
performance is the shared responsibility of all
levels of employees
• Daily Work Management-defining and monitoring
key processes, ensuring that they meet set
targets, detecting abnormalities and preventing
their recurrence

21. Pre-Award Scenarios
• Guidance from Japanese counsellors and
Indian counsellors for training, assessment
and guidance in TQM implementation
• Counsellors were Mr. Bunteru Kurahara
followed by Prof Y. Washio and Prof. Tsuda.
Mr. Janak Mehta introduced all these
measures and were involved in the initial
stages in 1990 to 92 in Daily Management and
Policy Management

22. Consultation and Training were
provided on various aspects:-
• Understanding TQM
• Understanding of Deming
criteria
• 5S
• Daily Management
• Policy Management
• Cross-functional Management
• Quality Assurance
• Quality Cost
• New Product Development
• QC Story / Problem Solving
• Basic QC Tools
• Advanced Statistical tools
• Methods and tools for Total
Employee Involvement like
Suggestion scheme, QC Circles,

23. Post –Award Scenarios
(1) Quality Stabilization and Improvement
(2) Productivity Improvement / Cost Reduction
(3) Higher Sales and higher profits
(4) Customer delight & enhanced market
share/margins
(5) Realization of Top Management's Dreams
including Business Plans
(6) TQM by Total Participation and Improvement of
the Organizational Culture.

24. Current Status and Sustainability of
Award
• Recently been selected for Deming Grand Prize
for the year 2012 by the Union of Japanese
Scientists and Engineers (JUSE)
• Deming Grand Prize is the next higher level of
Award and the Company now has joined the elite
group of 25 organisations worldwide
• The examination for the Deming Grand Prize
conducted by the Deming Prize Examination
Committee and the decision of award is made by
the Deming Prize Committee

25. Lessons and Takeaway from Analysis
• Even if an organization has established a sound quality
assurance system and has won the Deming Prize, it
cannot stand still
• it will surely need to adapt and transform its quality
assurance system to meet new challenges and change
the scope and practice of its business
• it may need to diversify its products, develop new
products or initiate new business altogether
• To do this, the organization must continue educating
and training employees and developing new
employees who have joined the organization since
receiving the Deming Prize

26. • There is a beginning to total quality management
(TQM), but there is no end
• To meet the challenges organizations are realizing
that they need to transform the way they do
business through implementing TQM
• To respond to internal and external changes, and
to implement TQM more effectively in managing
the business, it is extremely effective for
organizations that have received the Deming
Prize to challenge for higher awards such as the
Deming Grand Prize

27. RESEARCH PAPERS

28. Indian Auto-Component Supply
Chain at the Crossroads

29. What is this about?
• The evolution of the auto-component supply
chain in India
• combination of data on firm and sector
performance
• Customer satisfaction surveys
• Interviews with experts
• 10 firms in this industry that have won the
coveted Deming prize during the past six years

30. What was done?
• Financial performance of the firms shows no
much difference from the performance in the
rest of the industry
• Then it analyses the productivity growth across
two five-year intervals
• Result that productivity improved much more
during the second period
• Then analyses the impact of winning the award
on profitability

31. (contd.,)
• Suggest that new firms were able to grow faster
in the improving business environment
• Compares the auto sector in India with that in
China
• The auto sector in India seems to be
competitive with that sector in China on all firm
specific factors

32. Findings
• Firms competitive in the areas of cost and
quality they have several choices to leverage
into a profitable, global supply chain strategy
• Most firms have adopted TQM practices, with
resulting quality and delivery improvements
• These changes have occurred in the 1998–2003
period result in productivity improvements
• one of shift wherein firms encourages inflow of
new capital or technology

33. Country of Assembly (COA) effect
on perceived automobile quality: a
consumers’ perspective

34. What is this about?
• Lucas TVS Ltd is an automobile spare parts
manufacturing company
• the parts manufactured here can be used in
different types of automobiles
• 6 hypotheses that explain the main objective

35. Hypothesis
I
• Evaluation
• According to the assembling at highly industrialized
country to low industrialized country.
Hypothesis
II
• Relationship
• Brand image and perception of automobile quality
assembled
Hypothesis
III
• Strong and consistent automobile brand image
• lessen the perceived quality of evaluating
automobiles

36. Hypothesis
IV
• Ethnocentric consumers
• Evaluating the perceived quality of domestic assembler’s
automobiles
Hypothesis
V
• Ethnocentric consumers
• Tend to have a lower income and education level, live in
larger households
Hypothesis
VI
• People who have not visited the abroad
• Less ethnocentric than others

37. Findings
• Consumers rate : quality of products
manufactured in higher developed country of
brand origin as higher
• No significant difference in perceptions of Brand
Quality and Brand Economy
• Hyundai cars to be of higher brand status when
manufactured in a Korea than in India
• In a less developed countries: brand status
decreases when the country of manufacturing
occurs outside the country of origin

38. Findings (Contd.,)
• Country of manufacture: the negative effects of
country of manufacture may eliminate the brand
name
• Importance of country of assembly: prefer the
products that assemble only in the highly
industrialized country
• Consumers’ perceived domestically assembled
automobiles to be of better quality
• Quality and brand image: very high in term of
validity and reliability

39. Conclusion
• Since there is a huge variation in the
perception of the customer with respect to
the country of origin and country of
manufacture. A standard bench mark is
needed for the company to show the quality
standard that explains to the customer. The
option is “QUALITY AWARDS”

40. PART B

41. Issues covered by six sigma in
National City Bank

42. Six Sigma applications in Finance
• Reducing Financial Risk
• Simulation for financial decisions
• New product design of financial instruments
• Improving portfolio strategy

43. On operational level
• Reducing documentation errors
• Improving the reconciliation processes.
• Reducing response delays.
• Reducing or eliminating invoicing errors
• Eliminating the possibility of erroneous data
entry
• Control spending over time
• Reducing complaints.
• Improving customer feedback and response
processes

44. Increase customer satisfaction:
Reduce waiting time for services and provide
better and faster services
Increase Profitability and Decrease Costs:
Eliminating process inefficiencies, and errors
and enhance customer satisfaction while offering
quality services
Monitor performance:
The customer waiting time, the services
offered, the satisfaction level of customers are
measured.

45. Eliminate processing delays:
Applications to offer better customer services
to enjoy better retention rate and increase inflow
of regular customers
Analyze performance and avoid banking errors:
customer satisfaction level can be measured
before implementing lean sigma approach and
after taking corrective measures

46. Implementation of the six sigma resulting:
• Faster customer response time
• More delegation to frontline
• Improved accuracy