Transcript Slide 1

Quality as a Differentiator
for Growing the Business
- Manoj Belgaonkar
New Delhi, June 13, 2014
Confidential / © Siemens AG . All rights reserved
Quality
is
easily
misunderstood
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Quality is compliance to standards
 Internal Standards: Process standards
Confirm / Review
Compliance
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
 Processes, interfaces: Adequacy and
Enable / Measure
Performance
effectiveness of relevant processes e.g.
Customer Perception gathering,
Interfaces between processes,
Continuous improvement projects
 Resources: Adequacy of resources
required
 Controls: Effectiveness of controls
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Quality is related to products
 Value for money
Products
 User friendly
 Reliable
 Robust
 Competent
People
 Innovative
 Efficient
 Effective
Process
 Optimised
 Perfect / Dependent
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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
broad understanding of principles and
methods among the employees

Establish

Sustainability needs a
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sustainable culture
change
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Quality offers intangible benefits / contributions
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Quality contributes to more than cost reduction
Reduce costs by 10%
-10%
Improve turns by 20%
+20%
Increase Sales by 40%
+40%
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




Optimise product design





Reduce lead time




Increase extraction from existing customers
Use economical sourcing
Improve %
Increase productivity / FPY thru process improvements
profitability
Optimise overhead costs
Reduce extra cost
Deploy Lean manufacturing principles
Better management of receivables
Increase inventory turns
Improve
no. of
turns
Zero defect
Win new customers
Introduce New Products / services
Grow 2x
times the
market
Launch Innovative products
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Quality does lowers costs
100
Capital
10
Personnel
20
Material
70
Total costs
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15
5
10
 Material
substitution
 Alternate
suppliers
 Contract
manufacturing
Cost reduction
10
5
5
 Muda
 Six sigma
 Simpler
processes
 Lean
 Kaizen
 5S
Productivity
improvements
70
5




Just in time
Lean
Zero defects
Outsourcing
Optimised capital
Effective
cost base
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Quality can also contribute in Sales
 How can we
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12
13
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15
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20
increase our
participation?
 How do we reach
our customers?
No. of offers
 How do we move
1
2
3
4
5
6
7
8
9
10
beyond “price
based selling” ?
 How do
customer’s
perceive our
products?
Lost orders
1
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2
3
4
5
6
7
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9
10
 How easy it is to
do business with
us?
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Quality contributes to more than cost reduction
 Wastage reduction
 Non conformance cost
management
 Supplier Quality
Management
PBT
PBT
RoCE
=
 Better delivery lead
times - Lean
implementation
 Reduced receivables Zero defects
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X
=
Capital
Employed
Sales
Sales
Capital
Employed
 Lean implementation
 Zero defects
 Claim management
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Quality is one of the
top
buying
criteria
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Quality can open many doors
Quality is one of top
3
buying criteria Price, Delivery,
There are more than
2
suppliers for
60 – 70%
There are
different
of purchasing volume
criteria
to have
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Quality
multiple
suppliers
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Quality needs to be planned across value chain
Analyse the
process
e.g. Order
Won/loss
Does not
meet
requirements
Products
Meets
requirements
Not as per
confirmed
date
Order lost
Offer
Order
Order won
Not as per
agreed terms
Delivery
Collection
As per asked e.g.
As per agreed
Complete
date
terms
delivery
Missing processes
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Quality has significant contribution towards Brand
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Vision and Principles
Quality Vision:
Siemens stands for world-class quality
Our vision is based on these principles
1 Quality is determined by our customers
2 Quality means understanding and exceeding customer expectations
3 Quality starts at the top
4 Quality is a value of all employees
5 Quality needs to be integrated into products and processes at an early stage
6 Quality is a matter of measurement and transparency
7 Quality needs continuous improvement
Source: CQM
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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
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Vision and Principles
The Mandatory Elements have been derived from a
global benchmarking project
QM Benchmarking Project
St. Paul
(Minnesota)
Lufthansa
Technik,
Frankfurt
Tokyo
St. Leon-Rot
Armonk
(New York)
ValenciennesEsslingen
(France)
Yokohama
Source: CQM
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Vision and Principles
The Mandatory Elements are divided into four
categories
Methodology oriented
Categories of Mandatory Elements
Excellent processes for quality
Quality controlling
11. Customer integration
22. Quality standards in processes
and projects
3
3. Consistent supplier
management
Mandatory
Elements
Quality mindset and
outstanding capabilities
44. Business-driven
quality planning
5
5. Focused quality
reporting
66. Comprehensive
qualification for quality
77. Continuous improvement
Leadership for quality
88. Spirit by management
involvement
99. Control and support role
of the quality manager
Culture driven
Source: CQM
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Focus Area FY 13
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Quality can be a differentiator..
.. to Grow business
1
Quality needs holistic approach
2
Quality does offer tangible benefits
3
Quality is one of the top buying criteria
4
Quality helps in building brand - Reason “to be..”
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Questions ?
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Thank you
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