Total Quality Management

at
Larsen & Toubro Limited
Hazira Works

TQM COUNCIL
M V KOTWAL
EXECUTIVE VICE PRESIDENT
V.C.BEDI
VICE PRESIDENT
CLUSTER A

S K MALHOTRA
JGM - HEAD
MFF BUSINESS UNIT
SR.DGM
MFF

J G M (SERV.)
ADMIN AND MFG.
SERVICES

SR DGM
HR & TQM

JGM
SPL. PROJ (SBU-3)

J G M (SBU-4 HEAD)
COMP. SYSTEMS & ERP

JGM
PC-1

SR DGM
QA & NDE
D. G. M.
INCHARGE - LEMF

Sr. D G M
FIN & A/C

P-D-C-A OF ALL TQM & CHANGE INITIATIVES

THRU FORTNIGHTLY MEETINGS

Apr 03
Dec 02
Aug 02
May 01
Apr 00
Dec 99
Jan 99
Jul 97
Jul 96
Jun 96
Oct 95
Oct 95
Apr 95
Mar 95
Feb 95
Jan 95
Jan 94
Jun 93
Apr 93
Aug 92

TQM Journey at HZW

IQRS Level-7
TOC
Manthan
P
TBW
LSIP
A
D
Impr. Teams
CSS
C
IQRS Audit
P-D-C-A Cycle
TPM
JQ I
Example Setting
Process Parameters
OCS
Vendor Meet
Self Development
5S- House Keeping
TQM Launch
VOU Sessions
Speakout Sessions
EIS - Staff & Workmen

Employee
Involvement
System

(Kaizen)

A paradigm shift...
Personal Growth

System for
sharing
improvements

Creation of
learning
environment

Increased
Enthusiasm
levels

Why Employee
Involvement
System?
Sustain
productivity

Increased
Commitment &
Dedication
Increased
Employee
Involvement

Increase
organisational
competitiveness

Transforming
EIS

E-Survey

[Period - Jan 2002]

EIS is a painful exercise to the participant

Total Responses : 270
Don't Know (2.22%)

Not At All (24.07%)

65
143

Some Extent (52.96%)

42

Large Extent (15.5%)

Very Large Extent (1.48%)

Conclusion: Need for Change

EIS Feedback

-[Period -Feb-2002]

200
180

I want EIS to be discontinued

159 (79%)

Should EIS be extended

to W/M?

160
140
120

105 (49%)

108 (51%)

Yes

No

100
80

69 (21%)

60
40
20
0

Yes

No

Conclusion : System should Continue in some form

Manthan...
A Voluntary System

Focus on Quality
Quantifiable, Measurable improvements
Focus areas

Team based improvements

Involvement of Immediate superiors
Elimination of waste - Muda
Improved evaluation and recognition system
Archiving
Input for annual appraisal
Satisfying ISO & IQRS requirements

Manthan Coverage
Announces Focussed Areas

TQMC

C1, C2, C3, C4, C5

STAFF

Selects top 5 monthly

Improvements
Evaluates/endorses improvements
recd. in his dept - also gives own
improvements
Submits improvements to his
immediate superior in the
department

Manthan Methodology
Focussed Areas announced every six months

Submit improvements to immediate superior

before 5th of every month

TQMC

Staff

Evaluate the improvements

C1 to C5

Forward these improvements to TQM Cell

by 10th of every month.

C1 to C5

Check, Verify all improvements

received before 15th of every month

TQM Cell

Manthan Methodology

Continued

Select Min. 15% improvements

based on scores/gains

Organise meeting of the committee of TQMC members

between 16th & 20th of every month

Select top 5 improvements

TQM Cell

TQM Cell

Committee

Announce results before

end of every month

TQM Cell

Facilitate Rewards/
Recognition Process

TQM Cell

Evaluation Criteria
Criterion

Points

Individual or Team

10 (1)

15 (2)

20 ( >2)

[ Figures in brackets show no. of persons ]

One Time or Sustainable

One time
10

Proactive / Reactive

Flower
stage
10

Creativity

Focus Area Multiplier

Low
10

Sustainable
for 1 year
20

Perpetual

Bud
stage

Sprout
stage

15
Medium
15

1.2

Please Circle the points for each criterion while evaluating

30
Seed
stage

20

25

High
20

Unique
25

Daily display in the canteen

INITIATOR

Mr.Sanjay Chaudhary

Did Automatic SAW with nozzle welder for the first time for outside
welding after chipback on Nozzle # shell joint. SAW was done even
where the sagita of nozzles was more than 80 mm.
It greatly reduced the cycle time and chances of repair.
INDIVIDUAL
IMPROVEMENT
(10)

JULY
RANK
SCORE

TEAM OF < 2 TEAM OF >2

(15)
(20)
SUSTAINABLE
ONE TIME
FOR 1 YR
PERPETUAL
(10)
(20)
(30)
FLOW ER
SPROUT
SEED
STAGE
BUD STAGE
STAGE
STAGE
(10)
(15)
(20)
(25)
LOW
MEDIUM
HIGH
UNIQUE
CREATIVITY
CREATIVITY
CREATIVITY CREATIVITY
(10)
(15)
(20)
(25)
FOCUS AREA - Cyc le time reduction
SAVING FACTOR - 27
TOTAL 117

2
117

TEAM MEMBERS

Mr. Himesh A Patel

Manthan No.157

Mr. Kaushal B.Desai

Mr. Manish C.Patel

Mr. Umesh K Ojha

29.10.03

The top 5 of the month

A box of sweets

Ticket for quarterly lucky draw

Congrat ulat ions !!!

030302T7

Dear

Your improvement is selected for

Lucky Draw

TQM Fac ilitation

Hazira Works

Y. B . Pandya
Sr. DGM, HR & TQM Facilitation

Preserve this ticket till the time of draw

The amount will be given by way of Gift Voucher
Produce the ticket in original, to collect Gift Voucher
The ticket is not transferable

 Annual lunch for the best 25 contributors

with their spouses on Sunday.

Participation level, scores & gains will be

considered as one of the inputs for annual
recognition.

Juran
on
Quality Improvement

Small Group Activities

Purpose
To solve chronic Cross Functional Problems
First Phase (1995-96 onwards)

7 Problems prioritised by TQM Council and 7

Teams formed

All teams came out with certain solutions

Lessons Learnt

Problems Chosen were Elephant Size

Lack of Structured Methodology

Lack of Training

JQI

A methodology for solving

chronic quality related

problems
developed by
Dr. Juran

BAD Quality

JURAN TRILOGY
QC
Sporadic
Spike
Fire
Fighting
QI
GAIN

Chronic Waste

Hidden Factory - COPQ

Time
Lesson Learned

THE FOUR PHASES

OF
JQI
HOLDING
THE
GAINS

REMEDIAL
JOURNEY

PROJECT
DEFINITION
AND
ORGANISATION

DIAGNOSTIC
JOURNEY

The JQI methodology

Cross functional teams

Structured Weekly Meetings
Prior reading of relevant session from
Workbook (Total 16)
Viewing of relevant cassette during session
& discuss applicability
Fill in JQI Action Guide
Facilitation through consultants
P - D - C - A through TQMC

Juran on Quality Improvement (JQI)

Second Phase
Juran On Quality Improvement (JQI Process)

Number of JQI Projects

1996 - 97

1997 - 98

12

1998 - 99

2000-01

2001-02

Recognition
The JQI journey ends with a presentation.

At the end of the presentation the best team is

selected.
The selection is done on the basis of the Council
members and Consultants evaluation.
The evaluation is on the basis of 4 well defined
criteria.

JQI Gains...
Training

Team Facilitators/Leaders (5 days)

Team Members (2 days)

Q.C. Tools Training

JQI Helps in....

Challenging assumptions

Spreading Data Driven Culture

Improving Teamwork and Timeliness

Extensive use of QC tools

Institutionalisation of improvement processes

International
Quality
Rating
System A leadership compass

Chronology of events
Baseline audit

July 1 to

5 1997
Formation of 18 teams

Feb 9, 2002

Awareness sessions

For champions & team members

Feb 22 & 23, 2002

For F2 & above

March 1 & 8, 2002

Protocol rev.ed.3.2

May 2002

Reorganisation of teams

June 1, 2002

Revised ed. 3.2.0.1

Nov 2002

IQRS Audit by DNV

April 2003

What is IQRS?
An advanced tool used
worldwide for measuring the

level of quality management

of an organisation

International Quality Rating

System
for
MEASUREMENT
Of our
QUALITY SYSTEM MANAGEMENT PERFORMANCE

In terms of Effectiveness
Efficiency
Excellence
goals

- doing right things first

- doing things right first time
- efficiently meeting effective

IQRS Comprises of
14 elements
10 levels (Level 1 - lowest )
(Level 10 - highest)
919 questions and
20,000 points

Total
Productive

Maintenance

TPM Goals
Zero unplanned downtime
Zero Speed losses
Zero defects

Leading to improved O.E.E.

TPM Implementation
Identify Machines for TPM
Organise Cross functional teams comprising of operators,
Maintenance personnel, Supervisors from shops, Plant
Engineering and related departments

Organise Class room training on TPM for Teams - 3 Days

Organise "Maintenance Wonder Workshop" for all Teams 5 Days for teams to practice (on their machines) what

they have learnt in Classroom.

Show to teams the dramatic results achieved
Facilitate

Teams'

Improvement

progress

towards

Continuous

TPM at L&T Hazira

Introduction

July 1996

Machines covered till date

52

Employees Trained till date

335

Active Teams

48

Plan-Do-Check-Act (P-D-C-A) of TPM Process

Maintain & Update Activity Boards
Periodic reviews through Shop Incharges' meeting
Audit by TPM Consultant in APR-AUG-DEC every year
Yearly Recognition

5s
for
Workplace Management

THE 5S CONCEPT
SEIRI
SEITON
SEISO
SEIKETSU
SHITSUKE
IT IS A SYSTEMATIC APPROACH FOR A BETTER WORK PLACE
IT ASSIGNS PLACE FOR EVERYTHING
EVERYTHING IS IN ITS PLACE

AND

ENSURES

IT CREATES A COMPANYWIDE ATTITUDE OF RESPECT FOR

WORK PLACE MAINTENANCE
IT DEVELOPS A SET OF ACTIVITIES FOR ENSURING QUICK
ACCESSIBILITY TO NEEDED MATERIAL AND INFORMATION

5S HOUSEKEEPING
HZW DIVIDED INTO 5 GEOGRAPHICAL ZONES & 48
AREAS
AREA CATEGORIES

PRODUCTION(SHOPS)

- 10

PRODUCTION(YARDS)

- 7

STORAGE

- 10

OFFICES

- 13

UTILITIES & SERVICES

- 8

QUARTERLY STRUCTURED AUDITS - ANNOUNCED &

UNANNOUNCED

AUDITORS - OUTSIDE FACILITATOR AND TQM COUNCIL

MEMBERS

ZONE - I
(MMM)

ZONE - I (MMM)

5S HOUSEKEEPING
RECOGNITION:

5S LEADER AREAS/ZONE PUBLISHED THROUGH

CIRCULARS
5S LEADER AREAS/ZONE DISPLAYED AT
STRATEGIC LOCATION

5S LEADER AREAS RECOGNISED THROUGH L&T

PRAGATI
5S LEADER AREAS VISITED BY SENIOR

MANAGEMENT TEAM WITH LEADING ZONE OWNER

FOR TROPHY DISTRIBUTION, GROUP
PHOTOGRAPHS TAKEN

Voice of Users a simple way of finding out your

internal customers expectations

OBJECTIVE
To understand user expectations and
carry out process improvements.
To remove irritants.
To introduce clarity.
To improve working environment.

METHODOLOGY
Customer department raises issues and expectations.

Facilitator notes down the expectations.

At the end of the session the service provider makes a
statement of commitment
Summary of user expectations is sent to the service
provider
The service provider charts out an Action Plan.
The Action Plan is sent to all the Users by the TQM
Cell.

GROUND RULES FOR CONDUCT

(FOR USERS)
To raise significant issues.
To focus on problems and not
persons.
To avoid repetition.
To refrain from exaggerations

GROUND RULES FOR CONDUCT

(FOR SERVICE PROVIDER)
To listen attentively.

To refrain from instantaneous

reactions.
To remain receptive
throughout the session.

Departmental
Performance /
Process Parameters

Objective :
To identify key Process Parameters of each department
Processes which align with user / customer expectations and
company goals

Methodology :
Dept. Heads enlist Departmental Process Parameters thru
internal discussions with subordinates

Periodic review / revisions by Dept. heads / TQM Council

Regular display of DPPs

Improvement
Teams

To improve Productivity and Quality in

Shop Floor activities.
Started in Phased manner in December 1999, 4-5
teams at a time
Generally 5-7 members comprising of Shop
Supervisor and Workmen
Periodic meetings
Influenced by JQI methodology
Workmen encouraged to make presentations after
completion

TQM and You

Enthused
participation

Continuous feedback

HANK YOU