AN EXCELLENCE IN OPERATIONS CASE STUDY

PRESENTED BY : Group 2 Arindam Misra Md Shafiul Ravi S Chaudhary Toulick Laskar Varun Ganotra Vinesh S Chauhan

Xerox : The riches to rags story …. 1960s: Enjoyed a complete monopoly through patents. All of Porter’s 5 Forces : Favourable 1973 : Federal Trade Commission intervention (PESTLE conditions), many

competitors come in, From Monopolist to less than 50% market Share Before they concentrated on strategizing on internal standards, but after the deregulation, Xerox was forced to look into the external factors for sustainability ….

Objectives for sustainability ….

Diversification into other businesses did not yield desired results.

Strategy Revised to: Improving Productivity Customer Satisfaction Cost Effectiveness

SWOT ANALYSIS….• Strong Corporate Brand.• Strong R&D Lab.Strengths• Less focus on product features.• Lack of performance in the document technology

division.Weaknesses• Significant acquisitions.• Services poised to capture growth in cloud,

mobility and analytics.Opportunities

• Trends indicate structural declines in document technology.

• Competitors – HP, CANON Inc, Ricoh Company Ltd.Threats

Strategy Begins ….

Competitive Benchmarking Comparing with the best practices of the competitor.

Employee involvement Employee involvement through Quality Circle.

Business Effectiveness Improving Productivity, cost effectiveness, Customer Satisfaction. Major Restructuring: Formation of SBUs

Leadership through Quality….

Idea from Fuji Xerox : Successful turn around and Deming’s Award.

Total Quality Control : Adopted from Fuji Xerox but modified for effectiveness.

Competitive Benchmarking and Employee involvement to be the basis.

Quality Strategy: “Pursuit of Excellence”

Features of TQC:

Quality is defined by customers' requirements

Top management has direct responsibility for quality improvement.

"Increased quality comes from systematic analysis and improvement of work processes.“

"Quality improvement is a continuous effort and conducted throughout the organization."

Implementation ….Qu

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amCompanywideMembers of business groupsStrategyBlue Book GuidelinesGreen BookGuidelines Qu

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Trai

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Task

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Qual

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QIT QTTF Training

Tangible Benefits….

• 70,000 employees trained• Reduced Avg. Manufacturing costs by 20%• Reduced new product line time by 25%• Reduced suppliers from 5,000 to 350• Defect free rate to 99.5%• Changes in Product planning/ Distribution/ Customer.• Feedback from customers

Challenges to implementation ….

• Lagging behind the revised 1987 goal• Integration of quality into daily work• General management leadership• Implementation process• Scarce awards and Incentives• Deteriorating quality network• Lack as universal business driver

JIT, TQM and Lean Six Sigma ….

JIT• Automated material

handling.• Information

processing system.

Lean• Elimination of non-

value adding elements

• Only what the customers perceive as value is important.

Six Sigma• Design and

implement the most effective solution.

• Stringent measures for the best quality.

Seven “Bottom line” for continuous improvement

Group & unit general management leadership Sustaining strategy implementation in accordance with “Green Book” A systematic process of total integration of quality as part of daily work Management role modeling, inspection and coaching Recognition & reward o reinforce the process to achieve desired result Quality specialist skills to improve the capability in using the processes Focus on satisfying the external customers’ requirements

Thank You