EVOLUTION OF QUALITY IN XEROX

Presented by,Group 1

Jappreet S. BhatiaLokesh YadavDeepak Jain

• Xerox Corporation – 1906 and 1959 - Xerox 914

• Manufactures color and black-and-white printers,

multifunction systems, photo copiers, digital production

printing presses

• New players- IBM Kodak, Canon, and Sevin

• David T. Kearns took over as the CEO

• “Leadership Through Quality” in 1983 and Lean Six

Sigma in 2003

• Goal was to achieve superiority in quality, product

reliability and cost

XEROX

XEROX HISTORY

1959 1972 1979 1980 1983 1989 1990s

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AWARDS

• The Deming Award (Japan) In 1980

• The Malcolm Baldridge National Quality Award In 1989

• The European Quality Award In 1992

ISSUES IN CASE • During the 1970s, however, IBM and Kodak entered the

high-volume copier business—Xerox’s principal market. Several Japanese companies introduced high-quality low-volume copiers, a market that Xerox had virtually ignored, and established a foundation for moving into the high- volume market

• Xerox was soon losing market share to Japanese competitors, and by the early 1980s it faced a serious competitive threat from copy machine manufacturers in Japan; Xerox’s market share had fallen to less than 50 percent

CONTD …

• In comparing itself with its competition, Xerox discovered that it had nine times as many suppliers, twice as many employees, cycle times

• That were twice as long, 10 times as many rejects, and seven times as many manufacturing defects in finished products. It was clear that radical changes were required

LEADERSHIP THROUGH QUALITY PROGRAM AT XEROX

In 1983, company president David T. Kearns became convinced that Xerox needed a long-range, comprehensive quality strategy as well as a change in its traditional management culture .

The strategy for cultural change in Xerox that enables and

empowers people with quality tools and processes to,

1. Meet customer requirements

2. Achieve business priorities

3. Continuously improve

THE PLAN - LEADERSHIP THROUGH QUALITY

• 1983-the year of start-up activities

• 1984- the year of awareness and understanding

• 1985- the year of transition and transformation

• 1986 the year when results would achieved

• 1987 the year of approaching maturity

XEROX QUALITY POLICY STATEMENT

Kearns and the company’s top 25 managers wrote the Xerox

Quality Policy, which states:

“Xerox is a quality company.

Quality is the basic business principle for Xerox.

Quality means providing our external and internal customers

with innovative products and services that fully satisfy their

requirements.

Quality is the job of every Xerox employee”

OBJECTIVES ACHIEVED • To instill quality as the basic business principle in Xerox,

and to ensure that quality improvement becomes the job of every Xerox person.

• To ensure that Xerox people, individually and collectively, provide our external and internal customers with innovative products and services that fully satisfies their existing and latent requirements.

• To establish, as a way of life, management and work processes that enable all Xerox people to continuously pursue quality improvement in meeting customer requirements

4 GOALS PREVAILED IN XEROX

• Customer goal- to become an organization with whom customers are eager to do business

• Employee goal - to create an environment where everyone can take pride and feel responsible

• Business goal - to increase profits and to grow faster

• Process goal - to use leadership through quality in Xerox

1983 XEROX IMPERATIVE

BENCHMARKING• Benchmarked more than 200 processes with those of non

competitive companies

• Ideas for improving production scheduling – Cummins

engine company

• Improving distribution system – L.L.Bean (Logistics co.)

• Improving billing processes – American Express

• More than 40,000 surveys were mailed in one month to

understand the customer satisfaction level, and resolved

the dissatisfaction within no time

XEROX ‘S BENCHMARKING MODEL

Planning

Analysis

Integration

Action

Maturity

IMPORTANT SUPPORTING ELEMENTS

Recognitionand

Reward

Toolsand

Processes

TransitionTeam

Training Communi-cation

SeniorManagement

Behavior

Xerox is aTotal Quality

Company

RESULTS OF LEADERSHIP THROUGH QUALITY

oRejection rate fell from 10,000 ppm to 300 ppm

oNo inspection was required for the supplied parts

oNumber of suppliers were cut down drastically

oCost of purchase was reduced to 45 percent

oProduction time reduced by 60 percent

oQuality improved by 93 percent

oCustomer satisfaction and employee satisfaction resulted in

increased market share and more profits

Xerox’s Outcome

Initially:

• Failed to focus adequately on core work processes

and statistics.

• Plan was not integrated with business processes.

• Not tuned to the company culture and the need to

change it.

• Did not pick the right quality czar at the start.

• Did not push the operating units hard enough.

WHAT XEROX DID RIGHT1. It made an appropriate diagnosis of how to cure the ills of the

company.

2. Quality was the right process for the right solution at the right

time.

3. The necessary commitment was made by senior management.

4. A constituency was built starting at the top in a very calculated

and deliberate way.

5. Employee compensation was tied to quality.

6. The pursuit of the Baldridge Award was an energizing effort

within the company

5. Information systems use was effectively aligned with its business objectives and processes to achieve them

6. Executive compensation was tied to quality.

7. Innovations and successes of the TQM program were well publicized.

8. The pursuit of the Baldridge Award was an energizing effort within the company.

9. It achieved measured results.

RESTRENGTHENING QUALITY

INFORMATION SYSTEMS SUPPORT

• Xerox had over 375 major information systems

supporting the total business.

• Over 175 of these systems related specifically to the

management, evaluation and planning of quality.

• The validity, accuracy and timeliness of information

systems are assured by the use of a Data Systems Quality

Assurance process during the design, construction and

major upgrade of each information system.

XEROX’S LEAN SIX SIGMAPerformance excellence process

• Supports clearer, simple alignment of corporate

direction to individual objectives

• Clear links to market trends, benchmarking, lean Six

Sigma

• Supports a simple business model – “Baldrige type”

DMAIC

• Define, measure , analyze , improve , control

• Based on six sigma with speed and focus

• Capture opportunities

XEROX’S LEAN SIX SIGMA

Market trends and Benchmarking• Reinforce market focus • Disciplined approach • Encouraging employees

• Strong linkage between Performance excellence

process and DMAICBehaviors and Leadership• Reinforce customer focus• Expands interactive skills to have more team

effectiveness• Faster decision making• Supports leadership skills

Performance excellence process

WHAT LESSONS MIGHT THIS EXPERIENCE—PARTICULARLY IN RESPONDING TO THE NEW CRISIS- HAVE FOR OTHER

ORGANIZATIONS?

• Decreased focus on quality by top management

• Technology downturn

• Led to quality renewal

• New Quality in 2001 and onwards

• Lean Six Sigma

LEARNING'S

• Customer focused employees

• Quality

• Participation, speed, teamwork based on trust and learning

• Process is objective aligned to the company’s direction

• Benchmarking, both internal and external

• DMAIC- desire, measure, analyze, improve and control

• Lean Six Sigma

“QUALITY IS A RACE WITHOUT A FINISH LINE” AT XEROX

Quality is a never ending process

New technology

Skill full employees and management

Lean six sigma just a part

AT MOTOROLA

• Flexible Manufacturing

• 1981 launched a project to improve the quality

• Learnt it from Dominos Pizza

• 2002 won The Baldrige Award

• QSR

• Competitive Benchmarking

THANK YOU