1. Quality as a Differentiator for Growing the Business
- Manoj Belgaonkar
New Delhi, June 13, 2014

2. is
Quality
easily
misunderstood

3. Quality is compliance to standards
Confirm / Review Compliance
Internal Standards: Process standards defined in QPMs, procedures, work instructions
External Standards and Regulations: Management system requirements e.g. ISO 9000, ISO 14000, Product standards e.g. IS / IEC, Weight and Measures, BIS
Enable / Measure Performance
Processes, interfaces: Adequacy and effectiveness of relevant processes e.g. Customer Perception gathering, Interfaces between processes, Continuous improvement projects
Resources: Adequacy of resources required
Controls: Effectiveness of controls

4. Quality is related to products
Value for money
User friendly
Reliable
Robust
People
Competent
Innovative
Efficient
Process
Effective
Optimised
Perfect / Dependent

5. Quality is for shop floor people
A modern approach needs a holistic view across functional departments
A cross-functional approach generates new perspectives for optimization
Establish broad understanding of principles and methods among the employees
Sustainability needs a sustainable culture change

6. Quality offers intangible benefits / contributions

7. Quality contributes to more than cost reduction
Reduce costs by 10%
-10%
Optimise product design
Use economical sourcing
Increase productivity / FPY thru process improvements
Optimise overhead costs
Reduce extra cost
Improve % profitability
Improve turns by 20%
+20%
Reduce lead time
Deploy Lean manufacturing principles
Better management of receivables
Increase inventory turns
Zero defect
Improve no. of turns
Increase Sales by 40%
+40%
Increase extraction from existing customers
Win new customers
Introduce New Products / services
Launch Innovative products
Grow 2x times the market

8. Quality does lowers costs
100 15 5
Capital 10 10 5
Personnel 20
Material substitution
Alternate suppliers 5 5
Muda
Six sigma
Just in time
Lean
Zero defects
Outsourcing
Material 70
Simpler processes
Lean
Kaizen
5 S
Contract manufacturing
Total costs
Cost reduction
Productivity improvementsProductivity improvements
Optimised capital
Effective cost baseEffective cost base

9. Quality can also contribute in Sales11 12 13 14 15 16 17 18 19 20
No. of offers
How can we increase our participation?
How do we reach our customers? 1 2 3 4 5 6 7 8 9 10
Lost orders
How do we move beyond “price based selling” ?
How do customer’s perceive our products?
How easy it is to do business with us? 1 2 3 4 5 6 7 8 9 10

10. Quality contributes to more than cost reduction
Wastage reduction
Non conformance cost management
Supplier Quality Management
Capital Employed
PBT = =
Sales
PBT
Capital Employed
Sales X
RoCE
Better delivery lead times - Lean implementation
Reduced receivables -Zero defects
Lean implementation
Zero defects
Claim management

11. Quality is one of the top
buying
criteria

12. Quality can open many doors
Quality is one of top 3 buying criteria -
Price, Delivery, Quality
There are more than 2 suppliers for
60 – 70% of purchasing volume
There are different criteria
to have multiple suppliers

13. Quality needs to be planned across value chain
Does not meet requirements
Not as per confirmed date
Not as per agreed terms
Order lost
e.g. Order
Won/loss
Analyse the process
Meets requirements
Order won
As per asked date
As per agreed terms
Products
Offer
Order
Delivery
Collection
e.g. Complete delivery
Missing processes

14. Quality has significant contribution towards Brand

15. Quality Vision: Siemens stands for world-class quality
Vision and Principles
Quality Vision: Siemens stands for world-class quality
Our vision is based on these principles
Quality is determined by our customers
Quality means understanding and exceeding customer expectations
Quality starts at the top
Quality is a value of all employees
Quality needs to be integrated into products and processes at an early stage
Quality is a matter of measurement and transparency
Quality needs continuous improvement 1 2 3 4 5 6 7
Source: CQM

16. Vision and Principles
Our Quality Strategy focuses on continuous improvement based on our Mandatory Elements
Siemens Quality Strategy
Mandatory Elements
“Implementation of the Mandatory Elements of Siemens Quality Management and continuous improvement of people, process and product quality.”
Source: CQM

17. Vision and Principles
The Mandatory Elements have been derived from a global benchmarking project
QM Benchmarking Project
Lufthansa Technik,
Frankfurt
St. Paul (Minnesota)
Tokyo
St. Leon-Rot
Armonk (New York)
Valenciennes (France)
Esslingen
Yokohama
Source: CQM

18. The Mandatory Elements are divided into four categories
Vision and Principles
The Mandatory Elements are divided into four categories
Categories of Mandatory Elements
Methodology oriented
Culture driven
Excellent processes for quality
Customer integration
Quality standards in processes and projects
Consistent supplier management 1 2 3
Quality controlling
Business-driven quality planning
Focused quality reporting 4 5
Mandatory Elements
Quality mindset and outstanding capabilities
Comprehensive qualification for quality
Continuous improvement 6 7
Leadership for quality
Spirit by management involvement
Control and support role of the quality manager 8 9
Focus Area FY 13
Source: CQM

19. Quality can be a differentiator.. .. to Grow business
Quality needs holistic approach 1
Quality does offer tangible benefits 2
Quality is one of the top buying criteria 3
Quality helps in building brand - Reason “to be..” 4

20. Questions ?

21. Thank you