Driving and Sustaining Quality & Innovation in Manufacturing Processes

1. Driving and Sustaining Quality & Innovation in Manufacturing Processes Quality Presentation - EFY

2. 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 Date :16th Feb 2012 Devang Khamar Head Quality , Environment & Six sigma Driving & Sustaining Quality & Innovation - EFY

3. Driving Quality Through Business Processes Driving & Sustaining Quality & Innovation - EFY

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

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

6. Setting up of Right Business Measures Focus Drives Success Driving & Sustaining Quality & Innovation - EFY 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

7. Review Mechanism • 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 The Power of Focus Driving & Sustaining Quality & Innovation - EFY

8. Continual Improvement & Process Innovation Driving & Sustaining Quality & Innovation - EFY

9. Continual Improvement Tools & Techniques • Continual Improvement is an integral part of operations to improve the • operations in the business & to be competitive in the market. Levels of Involvement Description Tools & Techniques 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 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 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 • Think different, Think Out Of Box Driving & Sustaining Quality & Innovation - EFY

10. Elcoteq Way of Innovation & Continuous Improvement Innovation Strategy Management Commitment Rewards & Recognition • Quarterly Plant Communication • Meeting • Platinum , Gold , Silver Awards • For 6 Contest • - Highest Performer inQuiz (Top3) Quarterly CIP Contest Monthly Innovation Round Quarterly SGA Contest Industry Contest (QCFI) Monthly Innovation Round - Kaizen & Poka Yoke Star - Best SGA Awards - External Rewards • Quarterly Plant Communication • Meeting • - 5S Champion • - Best 5S Area (Team) Weekly Management Round Driving & Sustaining Quality & Innovation - EFY

11. Process Innovation B P R • 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 Driving & Sustaining Quality & Innovation - EFY

12. Business Process Reengineering Process 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 roadmapto fulfill the gaps between current process, technologies. • Implement the solutions to get the desired results. (Redesign the process) The Power of Focus for revolutionary improvement Driving & Sustaining Quality & Innovation - EFY

13. Benchmarking Practices Process Innovation • 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 Benefits of Benchmarking • 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…. Driving & Sustaining Quality & Innovation - EFY

14. Benchmarking Practices Process 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 Driving & Sustaining Quality & Innovation - EFY

15. Rewards & Reorganization • 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” Driving & Sustaining Quality & Innovation - EFY

16. Continual Improvement is a Ongoing Process Driving & Sustaining Quality & Innovation - EFY