TQM implementation at Xerox

Theoretical Background

Total Quality Management (TQM) is an organizational improvement method that began in

the 1950’s and progressively developed more prevalently into corporate America in the

1980’s. Total quality is an explanation of the ethos, attitude and business of a corporation that

endeavors to deliver their consumers with good and/or services that satisfy their needs. The

corporate culture demands excellence from all features of the business’s processes, with

procedures being done right with flaws and waste eliminated from processes.

To be efficacious applying TQM, an association must concentrate on the important

fundamentals:

Morals

Uprightness

Faith

Exercise

Cooperation

Management

Appreciation

Implementation in Xerox

Xerox adopted TQM following increased competition from the Japanese firms in 1976 who

could sell the copier machines for the cost of production incurred at Xerox. In its pursuit to

uplift its goods and service design to first-rate position, Xerox adopted one of the first

business models which formulated a benchmarking framework.. The business gauges its

performance in around two hundred forty key areas of merchandise, facility, and trade

performance. The momentum of Leadership through Quality is continuing with Xerox. The

process of continuous quality improvement, directed toward greater customer satisfaction and

enhanced business performance, targeted by 1993 a fifty percent discount in component

engineering charge and four-fold development in dependability. Objectives like this

exemplify the obligation restricted in the Xerox quality strategy, which states that excellence

is the plain trade opinion at Xerox.

Statistical process controls

Statistical process control is the method of measuring processes to design standards and then

finding the extent of deviation in the form of numbers. There are numerous methods at Xerox

which needed to be investigated and had barriers to productivity and quality. These processes

were laid out which led to discovery of bottlenecks and problems. There were questions

regarding the sequence of activities that formed a particular process. The process team

brainstormed over the flowchart of the process and identified the problem areas and the point

where waste was accumulating. The next step was to make a diagnostic chart called as Pareto

charts or fishbone diagrams which are the diagrammatic methods to find out probable cause

of a problem and then identify the most common cause.

Continuous measurement of a process time, waste produced, time lost and other measures are

used in setting up the mean measure and standards are set on the assembly line or any other

area like customer service. Next step is to monitor these areas which are done by Control

Charts. Using these statistical process control charts, manufactured goods trials are tested and

statistically measured. The product attributes from the regularly drawn sample are displayed

which enables the worker to determine the exact point at which process is deviating from the

standard. This results into taking action to avert additional decline of the procedure. Control

charts ensued in fewer scrap and leftover since the system replies faster to off-specifications

merchandise.

Xerox plant in Mitcheldean, England could cut up to forty percent scrap and won a national

prize in Britain for that.

Product design

Personnel at Xerox lead, observe, and assess development of operational regulation schemes

in gathering yearly goals. Frequently, to be operative, functioning organizations include four

indispensable purposes; Set criteria of performance, evaluate the authentic performance,

organize nonconformities from criterions set, and lastly start remedial achievement. There are

numerous instances of functioning controls with Xerox. Xerox has concentrated on "key

accomplishment influences", such as enhanced efficiency, extraordinary worker confidence,

better product-service class, and development in market portion.

Services design integrated into Total Quality Management

Service-design excellence, sales maintenance, performance of onsite Xerox workers, and

financial and managerial support -- are divided into comprehensive performance qualities that

are restrained in semi-annual reviews and once-a-month appraisals with clienteles.

Through XBS's ten Step Retailing Procedure, on-site facilities are made-to-order to satisfy

the inimitable requirements of every client. Enthusiastic account players progress criteria of

performance permitting to purchaser service significances. These criterions, which Xerox

promises to satisfy by its "total satisfaction agreement," are formalized in procedures

guidebooks established precisely for each client.

Team of dedicated employees upkeep the fleet of Xerox laser printers, photocopiers and other

multifunctional operations. Cost investments are attained by bringing out the total cost of

ownership and by integrating provisions organization. Sustainability initiatives are met by

eradicating obsolete technologies and instigating new energy-efficient Xerox copier

processes and products. Output rates increase with improved device dependability and pre-

emptive device organization.

Total Quality Management plays a major role at Xerox. It is a highly important viewpoint of

the corporation and has performed an imperative role in their continued success. The

approach Xerox uses combines distributing investigations and increasing proceedings for the

employees to take part in the TQM aspect of the company. The effects of the TQM

procedures have rewarded them with the coveted Malcolm Baldrige Award as well as

numerous additional Total Quality Management awards. The Xereox corporation’s

procedures that are used in the Total Quality Management package comprise benchmarking,

abridged supplier number, and creating management groups.

Capacity and facility designXerox has been in the manufacturing business for a long time. The company had the

strategic foresight to understand that it is imperative to locate a good site for the facility. It

is wise to choose sites that are away from residential areas to minimize the effects of

pollution. Manufacturing plants requires a lot of space to operate, you have the size of the

plant in addition to in inbound and outbound trucking fleets carry raw materials and

finished goods. Some of the factors that influence the location of manufacturing facilities

for Xerox are land costs, construction costs, transportation costs, electricity costs and labor

costs.

Xerox has been able to develop effective supply chain solutions made possible by

excellent facility and capacity design. The first step for this is to choose a strategic location

that is close to suppliers so that transportation cost is minimized. The management at Xerox

has realized that TQM (Total Quality Management) cannot be influential unless its

principles are followed across the enterprise. For this same reason, Xerox has adopted a

policy of standardization at back end and customization at front end (Christopher, 2012).

Standardization at back end means that Xerox has adopted a common theme in all of its

facilities spread across the globe.

Xerox has effectively used the facility design as a part of TQM. Total Quality

Management aims at continuous improvement and therefore Xerox has built its approach to

continuously improve and innovate its supply chain starting from facility and layout design.

Xerox uses the typical design of manufacturing layout and it also uses techniques like Six

Sigma and lean management to achieve a balance between effectiveness and

responsiveness. With its green initiative it is essential that the supply chain remains

effective but not at any extra cost. Today, capacity and facility design is developed to

reduce the pollution contents in the entire supply chain.

Human resources contribution to the successesXerox has realized that its most important asset is its employees. For this same

reason Xerox has made it a point to put its employees first and it has immensely helped out

the company. Xerox has been a manufacturing company that is successful in the industry

due to its high quality products. At the same time Xerox has also realized that it is important

to provide excellent service to its customers.

The excellent service cannot be provided unless all the employees are motivated

towards a common cause. It would not be exaggeration to say that human resources lie at

the bottom of the pyramid of quality management. Total quality management is a

combination of people, process and technology. The contribution of human resources can

be discussed under following points:

Developing a culture of commitment and focus on continuous improvement so that

Xerox can focus on sustainable development

Xerox has also created industry wide best policies of compensation so that

employees remain motivated

Human resources of employees are emotionally bound to Xerox and this all has been

possible due a culture of trust and respect

Xerox also provides cross culture training to its human resources so that all the

employees can value the members from other culture

One thing that differentiates Xerox from its competition is the amount of freedom

given to employees at Xerox. This way employee can link their personal success to the

overall success of the organization. They are encouraged to be innovative and to discuss

their ideas in an open forum to management.

Schematic

Xerox is a large organization and therefore it believes that everything should be done

in a planned way. The management realizes the importance of project management and it

uses the simple tools of quality management like Gant charts and check lists. These tools of

project management may appear simple but these are powerful tools that help Xerox in

Total Quality Management.

Gant charts help Xerox to skillfully plan its activities. It also assists the company

with back tracking the status of activities and to analyze the activities that were completed

on time and activities that were delayed. The Critical Path Method (CMP) and/or Program

Evaluation and Review Technique (PERT) charts help companies to link various dependent

activities. Any project scheduling at Xerox is based on the interdependence of activities. It

is targeted that complex and crucial activities should be completed first so that remaining

activities could be carried out more easily.

Xerox Supply ChainXerox itself is in the business of printing products but it has always placed an

emphasis on sustainability and the most “green” ways by which the company’s carbon

footprint can be minimized. Xerox expertly utilized its human capital and through

innovation invented certain technologies that enables customer to cut costs and protect the

environment. A report from Xerox says:

“We’ve partnered with The Nature Conservancy to promote sustainable forestry, preserve

biodiversity and help minimize forest loss and degradation that contributes to greenhouse

gas emissions.”

To make the supply chain even more effective Xerox has also partnered with its

suppliers to facilitate the use of clean, green energy. Xerox also developed the first energy

based calculator that helps customers to effectively use their supply chain by keeping a

balance on the use of energy (Xerox, 2011).

Xerox global supply chain procurement and distribution processesXerox is a multinational company that has been operating in all major countries of

the world. It has its presence from developed nations is United States to emerging

economies of India and China. Xerox has thousands of suppliers spread all across the world.

Xerox has managed its suppliers by establishing different subsidiaries that manage the

operations of Xerox in different parts of the world (Meacham, 2012).

Xerox has adopted the policy of standardization at the back end that enables it to

standardize its procurement process. Xerox aims to maintain good relationships with its

suppliers so that it can procure the raw materials at minimum cost. The procurement is an

important aspect of the supply chain of Xerox. The supply chain integration for Xerox starts

with the procurement process and it ends with the monitoring of customer satisfaction. The

distribution process at Xerox has been based on a mix of global and local players. Xerox

uses large players in its distribution sector like FedEx to ship the goods from one country to

another. At the same time Xerox has also established a good network of local distribution

partners that can ship the products to local retail shops in different countries.

Qualitative and quantitative forecasting

Xerox like any other company in its industry, has to look for innovative ways of

forecasting. There was a time when companies used to operate solely in domestic markets;

and at that time forecasting was not the top priority. Today Xerox has its operations in

almost every part of the world. It is essential for them to design and skillfully utilize proper

forecasting techniques so that it can meet fluctuating demand levels as the entire concept of

forecasting was started with the idea of meeting instable demand requirements. The

forecasting techniques used at Xerox can broadly be classified into two categories,

quantitative and qualitative.

Qualitative techniques are usually based on judgment of experts rather than the data

and other figures. Xerox uses the subjective judgment of its experts to forecast sales volume

and other key indicators at various places. Xerox uses these qualitative methods where

historical data does not exist. Usually Xerox uses this technique along with quantitative

technique of forecasting. Delphi method is a very important and prevalent qualitative

method of forecasting being used at Xerox.

Quantitative forecasting methods are used when historical data on variables of

interest are available—these methods are based on an analysis of historical data concerning

the time series of the specific variable of interest and possibly other related time series.

Xerox uses this method of forecasting to make meaningful conclusions about trends. For

example Xerox uses the sales data of a region to forecast and estimate the future demand.

When a company’s forecast does not come to fruition it often has a negative impact on its

stock price; such was the case with Xerox in the second quarter of 2013. When Xerox failed

to meet its profit forecast by $0.03 a share it resulted in a 1.9 percent drop in stock price

(Frier, 2013)

Forecasting a key component to TQM

The key of TQM is to reduce the wastage and to improve the efficiency of entire

supply chain. Forecasting is a technique that is used to estimate the demand for a future

period of time. It can be just an informed opinion or an entire logistical approach based on a

scientific method. Many experts believe that forecasting has an essential role to play in

enabling Total Quality Management. Forecasting is a key component to TQM in the

following ways:

The fundamental aspect of quality management is to improve efficiency. Xerox or

any other company can improve efficiency if it knows how much it has to produce to

meet the upcoming demand. This can be done only when estimations are correct or

forecasting is adequate.

Total Quality Management also aims at minimizing the cost of operations. This can

be done when companies know about the effort involved in the future. Again,

forecasting can help companies to make accurate estimations of the future, so that

they can align the operations accordingly.

The above points explain the role of TQM in forecasting. In last two decades or so,

Xerox has acknowledged the role of forecasting and today forecasting has become a critical

science at that most programs and projects are incorporated into.

Are inventories vital to successful sales and operations planning?

Inventory planning is crucial to the success of organizations in a number of ways.

The most important reason is that companies have associated holding cost with inventory.

Xerox is a large company that cannot only run on the concept of ‘make-to-order’ also

known as just-in-time. It has to make certain that it has strategic levels of safety stock in

inventory if demand exceeds inventory. For Xerox, the list of inventory would start from

raw materials and move through inventory of finished products. Xerox’s inventory

management is rooted firmly in customer satisfaction and runs a demand driven supply

chain. Xerox believes that its time-to-customer is a competitive advantage and that the

complexity is smoothed out through high performance work systems.

Inventories are crucial to successful manufacturing, logistics, and sales planning as

inventory levels help in meeting cyclical demand. Large companies like Xerox cannot vary

its production levels on a large scale to meet this demand; therefore it is recommended that

Xerox should keep an appropriate inventory stock that is very strategic. Xerox has also been

using strategic planning systems and information technology to manage its inventory levels.

There have been solutions like ERP (Employee Resource Planning) that has helped large

organizations like Xerox to manage their sales, operations, and planning and inventory

management.

Any sales or operations planning cannot start without inventory management. Sales

personnel must accurately forecast the future demands but to meet these demand operations

department has to keep a level of inventory maintained. The inventory levels also help the

sales department to set the stage at various regions when they are advertising and

promoting. Xerox has a central inventory department which in turn is linked to the localized

inventory department of each region. By properly managing inventory Xerox can deliver on

its promise of order satisfaction. They have one massive integrated supply chain that

ensures optimized customer satisfaction at lowest cost. By managing flow and not stock

they are able to increase throughput through the system they can use their warehousing and

transport strategies to offer same day deliveries in some instances (Xerox, 2013).

TQM, vital to successful sales and operations planning

There was a time when sales and operations had a limited role to play. This was

when competition was only limited in nature. However today, competition is at its peak,

successful companies are those that can have long term vision of production and planning.

Companies like Xerox have to plan ahead of time. The sales people have to make correct

forecasts and operations departments have to deliver the products at right time.

The goal of TQM is an integrated approach that can combine all the departments and

improve the overall efficiency and responsiveness. Operations planning, production support

and sales are at the core of any TQM program (Carr, 2012). The quality management

program at Xerox would cut across all the important functions of the organization. The

concept of TQM is vital to the principles of operations and sales as it would help Xerox to

increase the profitability and growth and this is the overall target of operations and sales.

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