Driving and Sustaining Quality & Innovation in Manufacturing Processes Thursday, January 19, 20121Quality Presentation - EFY

Date :16 th Feb 2012 Devang Khamar Head Quality, Environment & Six sigma Contents Driving Quality Through Business Processes Defining Business Processes Employee Involvement & Empowerment Defining Business Measures Measures Review Mechanism Continual Improvement & Process Innovation Continual Improvement By Involvement Business Process Reengineering Benchmarking Reward & Reorganization Thursday, January 19, 20122Driving & Sustaining Quality & Innovation - EFY

Thursday, January 19, 20123Driving & Sustaining Quality & Innovation - EFY Driving Quality Through Business Processes

Defining Business Processes 4 Business processes are set of work activities and associated resources that produces something of value to a customer. Interaction of Business Processes Rules & Procedures Instructions Forms Level-1 Level-2 Level-3 Level-4 Business Process Manual Mission Why Organization Exist Mission Why Organization Exist Core Values What Organization Believe In Core Values What Organization Believe In Vision What Organization Want to Be Vision What Organization Want to Be Organizations Direction Process Approach Thursday, January 19, 2012Driving & Sustaining Quality & Innovation - EFY

Employee Involvement & Empowerment 5 Interaction of Business Processes Organizations Rules & Policies Instructions Forms Level-1 Level-2 Level-3 Level-4 Business Process Manual Mission Why Organization Exist Mission Why Organization Exist Core Values What Organization Believe In Core Values What Organization Believe In Vision What Organization Want to Be Vision What Organization Want to Be Organizations Direction Employee Involvement & Empowerment Employee Involvement & Empowerment Top Management (Management Team, Business Owners & Customers) Top Management (Management Team, Business Owners & Customers) Middle Management (Process Owners, Line Managers & Leaders) Middle Management (Process Owners, Line Managers & Leaders) Executors (Line Engineers & Operators) Executors (Line Engineers & Operators) Joining forces for improvement Thursday, January 19, 2012Driving & Sustaining Quality & Innovation - EFY Employees Involvement in to Organizations Business Processes is Giving Empowerment in their defined work area.

Setting up of Right Business Measures 6 Business Measures must support Business Mission and the Vision. Measures can be categorized in to Major 4 Categories - Financial - Customer - Internal - Learning & Growth Measures Needs to be set at all levels in “SMART” Manner - S : Specific - M : Measurable - A : Achievable - R : Realistic - T : Time Bound Focus Drives Success Thursday, January 19, 2012Driving & Sustaining Quality & Innovation - EFY

Review Mechanism 7 Thursday, January 19, 2012Driving & Sustaining Quality & Innovation - EFY The Power of Focus It is a structured and Time Bound Process to review Business Measures Pre-defined Meeting schedules Structured & clearly defined agenda Active participation from the accountable area / process owners It shall be Transparent, efficient, inclusive and impartial Track the action points closer with owner & within agreed time lines

Thursday, January 19, 20128Driving & Sustaining Quality & Innovation - EFY Continual Improvement & Process Innovation

Continual Improvement 9 Thursday, January 19, 2012Driving & Sustaining Quality & Innovation - EFY 7 QC Tools Quality Circles 5S Single Minute Exchange of Die (SMED) MUDA Poka Yoke Statistical Process Control (SPC) Kiazen Daily Work Management (DWM) Benchmarking Total Productive Maintenance (TPM) Total Quality Management (TQM) Lean Six Sigma Continual Improvement is an integral part of operations to improve the operations in the business & to be competitive in the market. Problem Solving Tools Small Group Activity Workplace organization Effective Change over of Product Waste Elimination Mistake / Error Proofing Process Monitoring & Control Small Improvements Daily performance review Implement Best Practices Improve Assets effectiveness Involvement by All Breakthrough Improvement Process Owner, Line Leader, Operator Operators All employees Line Leaders, Operators Process Owner, Line Leader, Operators Process Owner, Line Leader, Operator All employees Process Owner Asset Owners All employees Process Owner, Line Manager, Leaders Tools & Techniques Description Levels of Involvement Think different, Think Out Of Box Tools & Techniques

Elcoteq Way of Innovation & Continuous Improvement 10 Thursday, January 19, 2012Driving & Sustaining Quality & Innovation - EFY Innovation StrategyManagement CommitmentRewards & Recognition 6  Continuous Improvement Projects (CIPs) Lean Sigma Knowledge Quiz Awareness Events Kaizen Poka Yoke Small Group Activity (SGA) 5S Quarterly CIP Contest Quarterly Plant Communication Meeting - Platinum, Gold, Silver Awards For 6  Contest - Highest Performer in Quiz (Top3) Monthly Innovation Round Quarterly SGA Contest Industry Contest (QCFI) Monthly Innovation Round - Kaizen & Poka Yoke Star - Best SGA Awards - External Rewards Weekly Management Round Quarterly Plant Communication Meeting - 5S Champion - - Best 5S Area (Team)

Process Innovation 11 Thursday, January 19, 2012Driving & Sustaining Quality & Innovation - EFY Business Process Re-engineering (BPR) is fundamental thinking & redesign of the business processes, to achieve a dramatic improvement in Critical Success Factors like Cost reduction, Quality Enhancement, Service Improvement & Cycle time Reduction. Why Business Process Reengineering ? - Economy is liberalized. - Today’s Market is going Global. - Customers are become Choosy. - Competition is getting Hot. - Companies cannot afford any more profit less turnover…. So the companies do not reengineer their business processes will simply go out of Business in next few years. BPR is no more a choice but it is a necessity in today’s Business B P R

Business Process Reengineering 12 The Power of Focus for revolutionary improvement Thursday, January 19, 2012Driving & Sustaining Quality & Innovation - EFY Defining the scope of the reengineering Project / Process Define the Objective Study the process with Customer, Employees, Competitors & new technology Create plan based on gaps & Implement the solution (Redesign) Collect the data for the business processes. Analysis of the business processes based on the data. Selection of the bottleneck processes. Based on the historical information define the “to be” state. Allocate the resources Learn the processes with customer, employees, competitors for their inputs. Collects inputs from the new technologies in the business. Creation of the roadmap to fulfill the gaps between current process, technologies. Implement the solutions to get the desired results. (Redesign the process) Process

Benchmarking Practices 13 Thursday, January 19, 2012Driving & Sustaining Quality & Innovation - EFY Benchmarking is an art of finding out in a systematic & legal way the best practices of successful Processes and Implement them to reach higher level of Excellence. Types of Benchmarking StrategicProductPerformanceProcess Helps Organization to learn from Experience of others Gives Organization a comparison to “Best in the world” Is a Proactive Solution Gives organization a Relative performance comparison vs. competitors Speeds up the Improvement activities…. Benefits of Benchmarking Types of Benchmarking Process Innovation

Benchmarking Practices 14 Identification of Areas for Improvement Define the team & Organize / Execute the visit Identify the Improvement points & Roadmap Implement & Monitor the result Identify the areas for improvement (Bottle Neck Process) Survey the similar process / practice industries Identify the team for study (All related Process Owners) Define the Clear Learning Plan Organize & Execute a well planned Visit. Summarize the observations & Learning by each member Formulate the time bound action plan with clear measures for Improvement Document the implementations for sustenance Monitor the process & Measures for continual improvement Share your Experience with others to generate new Innovative Approaches Thursday, January 19, 2012Driving & Sustaining Quality & Innovation - EFY Process

Rewards & Reorganization 15 Thursday, January 19, 2012Driving & Sustaining Quality & Innovation - EFY Companies strength is motivated work force Rewards and recognition is a powerful tool for employee motivation and performance Shows the Top Management Commitment for the Performing Employees Effects long-term Positive cultural change Team Rewards Builds solid Team work Improves employee retention to organization Improves employee Loyalty Helps to sustain the continual improvement & Innovation culture “Thank you for the Good Work”

16 Thursday, January 19, 2012Driving & Sustaining Quality & Innovation - EFY Continual Improvement is a Ongoing Process