evolucion del tqm (hk) business week 17pp

7/27/2019 Evolucion Del TQM (HK) Business Week 17pp

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Thai Carbon Black Public Co.,Ltd.


Deepening Reform, Embracing Change:

Competing to win in Global Markets

Deepening Reform, Embracing Change:Deepening Reform, Embracing Change:

Competing to win in Global MarketsCompeting to win in Global Markets

SS SrinivasanSrinivasan

President, Thai Carbon Black Public Co., Ltd, ThailandPresident, Thai Carbon Black Public Co., Ltd, Thailand

Enter, the Dragon: What the fastest

growing Economy Means to You!



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Enter, the DragonVs

Enter the Dragon



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Enter, the Dragon

• Low Cost Economy

• Low Wages

•WTO Membership

• Weak in Technology

• Weak Accounting Systems

• Weak Corporate Governance

• Made in China ( in every part

of world.. Textiles, Electronics)

• Quality of Chinese Products not world class

• Low Cost Economy

• Low Wages

•WTO Membership

• Weak in Technology

• Weak Accounting Systems

• Weak Corporate Governance

• Made in China ( in every part

of world.. Textiles, Electronics)

• Quality of Chinese Products not world class



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Thai Carbon Black Public Co.,Ltd.Thai Carbon Black Public Co.,Ltd.

Enter, the Dragon : Competitive Edge

• Quality Focus : Technology, Processes

• Cost Leadership

( e.g Raw Material, Freight,

Innovation, In-house Developments,

Advantage of Size, Productivity..)

• Delivery : Flexibility, Innovation, JIT

• Partnership with top customers(e.g Long Term, Flexibility to experiment,

Quality Systems)

• Process Focus

• People and Policy

• Community and Environment

• Quality Focus : Technology, Processes

• Cost Leadership

( e.g Raw Material, Freight,

Innovation, In-house Developments,

Advantage of Size, Productivity..)

• Delivery : Flexibility, Innovation, JIT

• Partnership with top customers(e.g Long Term, Flexibility to experiment,

Quality Systems)

• Process Focus

• People and Policy

•Community and Environment

Technology &Community

Environment

&Product

ServicesProcesses

Vision, Mission, Values, Beliefs



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Enter the Dragon: Scenario

• Leadership Change

( Premier: Wen Jiabao

President: Hu Jintao)

• Fastest Growing Economy : GDP>8%

• Growing Demand

• Good Infrastructure (Road, Power, Port)

• Quality of Workforce (Skills) not so good

• Attitude of Provincial Govt. excellent

• Receivables is a big problem area

•Quality Systems not established properly

• Leadership Change

( Premier: Wen Jiabao

President: Hu Jintao)

• Fastest Growing Economy : GDP>8%

• Growing Demand

• Good Infrastructure (Road, Power, Port)

• Quality of Workforce (Skills) not so good

• Attitude of Provincial Govt. excellent

• Receivables is a big problem area

•Quality Systems not established properly



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Enter the Dragon : Few Fundamental Steps

• Due Diligence Studies

•Market

•Financial

•Legal

•Technical

• HR • Environment

• JV Vs 100% FOE

• JV : Reference Check, Tech. Assessment

• Get Maximum benefit from Provincial govt.

• Take note of conflicting with Central Laws

• Due Diligence Studies

•Market

•Financial

•Legal

•Technical

•HR

• Environment

• JV Vs 100% FOE

• JV : Reference Check, Tech. Assessment

• Get Maximum benefit from Provincial govt.

• Take note of conflicting with Central Laws


Environment

&Product

Services

Processes




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Aditya Aditya BirlaBirla GroupGroup

The Land of Smiles – THAILAND, 3 decades, 10 plants

60 Manufacturing Units, 8 countries, 140,000 people

Steel, Aluminium, Cement, Textiles, Chemicals, Rayon Fibre,

Carbon Black to Telecom..+ + +

India’s 2nd

largest business - T.O. US$ 6 billion

The Land of Smiles – THAILAND, 3 decades, 10 plants

60 Manufacturing Units, 8 countries, 140,000 people

Steel, Aluminium, Cement, Textiles, Chemicals, Rayon Fibre,

Carbon Black to Telecom..+ + +

India’s 2

nd

largest business - T.O. US$ 6 billion

Thai Carbon Black -Thai Carbon Black -

One of the Biggest Carbon Black Plants in theOne of the Biggest Carbon Black Plants in theWorld at single locationWorld at single location



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Challenges and OpportunitiesChallenges and Opportunities

1997 Economic crisis in Thailand

25.5 to 56.5 Baht/ US$

GDP growth 9% to –10%

Surplus supply of Carbon Black

Imported raw material

Foreign currency loan burdenEconomic Slowdown in Japan

Entry in European Market

Entry in China Market

How to operate the plant at full capacity ?

Birth of TQM



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TCB'sTCB's Model Model


Environment

&Product

ServicesProcesses




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Mission shared vision

LT, MT, ST Issues

Results: Financial

parameters, Customers,People, Community

Hoshin Principles

ISO 9001, ISO 14001,

QS 9000, IQRS, TPM,

TQM ,OHSAS 18001

Mission shared vision

LT, MT, ST Issues

Results: Financial

parameters, Customers,People, Community

Hoshin Principles

ISO 9001, ISO 14001,

QS 9000, IQRS, TPM,

TQM ,OHSAS 18001

SocialConditions

TopManagement

VicePresident Manager Feedback

Steps

Levels

MissionVision

Mid & Longterm plan

President’s

Policy

VP’sPolicy

Manager ’sPolicy

Supervisor ’sAction Plan

ImplementationEvaluation Action

VP/Manager ’sDiagnosis

Presidential Diagnosis

Self - Examinationof Policy & Action Plan

Review of President

Policy

Legend

Operation Flow

Feed Back

Relation

Catch Ball

P

D

C

A

Policy DeploymentPolicy Deployment – – Hoshin Kanri Hoshin Kanri

Strategy on PolicyStrategy on PolicyStrategy on Policy



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Strategy for PeopleStrategy for People

Quality CirclesQuality CirclesKaizenKaizen

SuggestionSuggestion

SchemeScheme

TRAININGTRAINING

Total Productive MaintenanceTotal Productive Maintenance

5S5SQuality ofQuality ofLife ClubLife Club

LearningLearning

OrganizationOrganization

CFTCFT

SGASGA

OHSOHS ESSESS



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Strategy for Technology Strategy for Technology

Continuous Improvement

De-Bottlenecking

Innovation

Experimentation

Waste Heat Recovery

Cost Leadership

Highlights:

Quench Boiler – 1st in World

Technology Supplier – current applications

JV for Technology - special applications

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Strategy for Community and Environment Strategy for Community and Environment

Food to needyFood to needy

Adopting villages / orphanagesAdopting villages / orphanages

Health check up campsHealth check up campsSponsoring anti drug campaignSponsoring anti drug campaign

Sponsoring school sport eventsSponsoring school sport events

Celebrating FestivalsCelebrating Festivals

Hygiene, sanitationHygiene, sanitation

Environment : Sustainable Development

Waste Heat Recovery – Conservation of natural resources

Pallet-less bags – conservation of forest

Need IdentificationNeed Identification

ParetoPareto

Action PlanAction Plan

CSSCSS

ImplementationImplementation

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Strategy for Products and ServicesStrategy for Products and Services

New Product DevelopmentNew Product Development

Application ResearchApplication ResearchPackaging and freightPackaging and freight

JIT DeliveriesJIT Deliveries

*TCB

Customer

Supplier

S Y S T E M F L O W C H A R T F O R N E W P R O D U C T

InquiryProduct

concept

Customer

requirement

identification Analyze

past product

1 st sample

DR 1

DR 2

Pilot run

Sample approval

QAPD teamarketingustomer Tool

QFD

DOE

Regression

analysis

Mass production

Test FMEA

Test

*

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Strategy for ProcessesStrategy for ProcessesStrategy for Processes Strategy for

Customer Satisfaction

Strategy forStrategy for

Customer SatisfactionCustomer Satisfaction

Leadership – Quality

Council & CSF

Customer Adoption

Supply Chain Management

Internal Customer

Orientation

Communication

Benchmarking

Audits, Reviews and

Improvements

C S S

Internal

Independent agency

Customized Packaging

Pallet-less bags

Bulk liner

Door Delivery: JIT

Customized grades

Customer Adoption

Technical Services

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OutcomeOutcome



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TPM Excellence AwardDeming Prize

Prime Minister’s Productivity Award - Thailand

Benchmark Company for HRD : Govt .of Thailand

Forbes List: world’s Top 200 Small Companies

Thailand Quality Class

16 19 20 22 22

29 32 33

5357

64 6670

93

112

133

138143

150 151

0

20

40

60

80

100

120

140

160

82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01

9 0 0 %

9 0 0 %

Production / SalesProduction / Sales

CAG R – 11%

480

490

500

510

520

530

540

M T / E m p / Y r

Productivity 500 518 525 533 543

1998 1999 2000 2001 2002

Employee ProductivityEmployee Productivity

6. 6 %

OutcomeOutcome

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Th Ph TCBTh Ph TCB



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Three Phases at TCB Three Phases at TCB

Influencing and

Learning

ProactiveReactiveResponse

Customer FocusNeed BasedSkill BasedTraining Focus

TeamworkDepartmentalIndividualWork Culture

Customer MarketProductionDriven by

Quality of

Management

Product & Service

Quality

Product qualityQuality Focus

Loving & CaringParticipativePrescriptiveManagement Style

StakeholdersCustomer OrganizationValue Creation

EmpoweredSystemIndividualOrientation

AttitudeSkillKnowledgeOrganization Focus

GlobalRegionalLocalMarket Reach

Growth &

Consolidation

ExpansionStartupPhase

1998-2002*1991-19971980-1990Period

evolucion del tqm (hk) business week 17pp

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