Gillette and Total Quality Management

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The Gillette Company History

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Industry Profile as of 1999

Gillette Operates 54 facilities in 20 countries • Distributes Products in over 200 countries and territories• Approximately 30,000 employees

Business Segments include:• Blades & Razors• Personal Care• Duracell• Oral Care (Oral-B)• Braun

Sales of $9 billion and earnings from continuing operations before taxes were $2 billion

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Competitive Market

Competitors:

• Proctor & Gamble

• Johnson & Johnson

• Warner & Lambert (Schick)

• Increased competition worldwide from local competitors

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Quality

Meeting or exceeding customer requirements now and in the future

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What is TQM?

Key Aspects of Total Quality Management (TQM)• Not Quantitative like Six Sigma• Focused on processes, and conceptual rather than targeted quantifiable

difference• Continuous Improvement, instead of just meeting specifications• Cost and Quality, not Cost or Quality

TQM Practices:• Cross-functional product design• Process management • Supplier quality management• Information and feedback • Committed leadership • Strategic planning• Cross-functional training• Employee involvement

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Why TQM was successful

Argentinean market opening up post Peron era• Previously a Nationalist economic environment• Didn’t matter what Gillette produced, it would be bought

Gillette Argentina leadership understood it had to adapt and restructure to meet competition• In 1980s Carlos Rotundo starts quality initiatives• General Manager Jorge Micozzi took a TQM class in early 1990s

• Became a huge proponent• Major driving factor in success

ODI Consultants brought in by Gillette Latin America to help implement TQM• Expert help demonstrated successful path forward• Strong leadership buy-in

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Why TQM was successful

Leadership Support• GM Jorge Micozzi fully supported TQM implementation• Convinced reluctant division chiefs to support, often spend hours

convincing them

Correct Personnel assigned to Lead• Walker’s facilitated many of the implementations• Investigated and responded to all initial feedback during implementation• Set up Workshops to educate workforce• Facilitated Steering Committee to identify appropriate personnel and

sponsors for the quality teams

Cycle of Efficiency• As quality teams worked together they became more efficient• This efficiency allowed for greater cost savings in identifying quality

improvements

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Continuing the Success

Continued Leadership Support• Hold fast to TQM implementations• Remember why TQM was implemented

Continuous Improvement• Ensure Workforce understands • Must focus on production teamwork

Customer focused – why produce quality goods• Top 4 customers represent 80% of sales• They must be satisfied with product

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Case Question

How should quality be exported to the rest of Gillette’s operations in Latin America?

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Why Quality Fails?

Management ignorance and interference

Insufficient support from top management

Resistance to change

Lack of training

Internal constraints (i.e. politics and rivalries)

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Recommendations

Quality can be applied to all organizations operations

Ensure Executives and Management buy-in to improving quality, top-down approach

Reduce internal departmental barriers Enhance Teamwork Implement a new working culture and style that fits with quality

initiatives

Assign team leaders to export Argentina’s TQM success• Implement an incentive based program to reward the most

successful Quality Action Teams• Create a virtual community in which success’/failures can be

shared across regions

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Questions?