abhishreshthaa
Abhijeet S
In Manufacturing
CROMPTON GREAVES
Overview:
At Crompton Greaves there is always a passion for quality. A quality trust mark has emerged as Crompton's biggest brand ambassador. In fact, this is reflected through quality certifications for its products and services. Further, the commitment to responsible business through quality, technology and productivity has helped the company to achieve a turnover of over Rs.2000 crore and receive many certifications in the ISO 9000/9001:2000/14001 series. The company has the unique distinction of being the first one to receive an ISO 9000 certification for Finance and Administration.
The company has made considerable progress towards integration of the Six Sigma methodology in its manufacturing processes with the ultimate aim of achieving 'Product Quality as Perceived By Consumer'.
This methodology was actively pursued for 10 products for which Critical to Quality (CTQ) characteristics were identified based on market feedback. Regional team has also been trained in Six Sigma technology for capture of customer's voice.
In addition to this, the company has also introduced stringent control measures with suppliers to ensure that inputs support the Six Sigma quality. In fact, all these measures have resulted in manifold improvement in the CTQs with substantial reduction in defects.
Phase 1
Ten products have been covered in the first phase, while nine products would be included in the second phase. Increasing coverage of products with six sigma approach will progressively help the company achieve 'product quality as perceived by the customer'.
Phase 2
In accordance with plan, the second phase of Six Sigma implementation commenced during 2004-05 with increasing executives being trained in the methodology. Six Sigma methodology has been extended to the design activity of the products
The Quality focus is reflected in a number of company wide initiatives that include:
At first, their quality was too low, and the customer wouldn't buy their products. When they improved on their quality, it also increased their costs, but the customer wouldn't pay for the higher price. They found that profitability is maximized when total cost of poor quality is about 25 percent of sales. The problem was that there is very little profit, even at that cost level.
Trying to get better quality out of their existing systems, which only adds costs. Thus they had to develop new systems that deliver better quality and lower costs simultaneously. They needed six sigma systems. After realizing this they implemented the Six Sigma technique. The typical three-sigma company spent about 25 percent of sales revenue on the cost of poor quality. The difference between three-sigma and six-sigma quality for their staff is shown below.
Six sigma is not a destination, but a journey of continuous improvement. Of course, they did not go from three sigma to six sigma in one big jump. Instead, overall performance helped them move from three sigma to four sigma, then to five sigma and so on as people were trained and systems redesigned and improved.
The company summarized by telling their staff that six sigma is not about quality for the sake of quality; it is about providing better value to customers, investors and employees. Paraphrasing the Chinese philosopher Lao-tzu, you announce, "Six sigma is a journey of a thousand miles. Creating a roadmap that links customer satisfaction, quality and costs is the first step."
CROMPTON GREAVES
Overview:
At Crompton Greaves there is always a passion for quality. A quality trust mark has emerged as Crompton's biggest brand ambassador. In fact, this is reflected through quality certifications for its products and services. Further, the commitment to responsible business through quality, technology and productivity has helped the company to achieve a turnover of over Rs.2000 crore and receive many certifications in the ISO 9000/9001:2000/14001 series. The company has the unique distinction of being the first one to receive an ISO 9000 certification for Finance and Administration.
The company has made considerable progress towards integration of the Six Sigma methodology in its manufacturing processes with the ultimate aim of achieving 'Product Quality as Perceived By Consumer'.
This methodology was actively pursued for 10 products for which Critical to Quality (CTQ) characteristics were identified based on market feedback. Regional team has also been trained in Six Sigma technology for capture of customer's voice.
In addition to this, the company has also introduced stringent control measures with suppliers to ensure that inputs support the Six Sigma quality. In fact, all these measures have resulted in manifold improvement in the CTQs with substantial reduction in defects.
Phase 1
Ten products have been covered in the first phase, while nine products would be included in the second phase. Increasing coverage of products with six sigma approach will progressively help the company achieve 'product quality as perceived by the customer'.
Phase 2
In accordance with plan, the second phase of Six Sigma implementation commenced during 2004-05 with increasing executives being trained in the methodology. Six Sigma methodology has been extended to the design activity of the products
The Quality focus is reflected in a number of company wide initiatives that include:
At first, their quality was too low, and the customer wouldn't buy their products. When they improved on their quality, it also increased their costs, but the customer wouldn't pay for the higher price. They found that profitability is maximized when total cost of poor quality is about 25 percent of sales. The problem was that there is very little profit, even at that cost level.
Trying to get better quality out of their existing systems, which only adds costs. Thus they had to develop new systems that deliver better quality and lower costs simultaneously. They needed six sigma systems. After realizing this they implemented the Six Sigma technique. The typical three-sigma company spent about 25 percent of sales revenue on the cost of poor quality. The difference between three-sigma and six-sigma quality for their staff is shown below.
Six sigma is not a destination, but a journey of continuous improvement. Of course, they did not go from three sigma to six sigma in one big jump. Instead, overall performance helped them move from three sigma to four sigma, then to five sigma and so on as people were trained and systems redesigned and improved.
The company summarized by telling their staff that six sigma is not about quality for the sake of quality; it is about providing better value to customers, investors and employees. Paraphrasing the Chinese philosopher Lao-tzu, you announce, "Six sigma is a journey of a thousand miles. Creating a roadmap that links customer satisfaction, quality and costs is the first step."