GENEVA CONSTRUCTION AND RISK (GCR)

GENEVA CONSTRUCTION AND

RISK (GCR)

ADNAN AHMED SMBA13005MANICK DEBARA SMBA13032

AAMIR CHOUHAN SMBA13074

About Geneva Constructions. GCR timeline. Case summary. Total Quality Management concept. Six sigma concept. DMAIC Approach. Six sigma support structure. Case questions: Q1, Q2, Q3 Conclusion.

AN OVERVIEW:

The Geneva Constructions and Risk Insurance was founded in 1922.

Provide insurance for building contractors and construction companies in German speaking countries in Europe and North America.

ABOUT GCR:

The company had remained small and had specialized in housing construction projects.

Began expansion into larger construction insurance in the industrial, oil, petrochemical, and power plant construction areas.

Bought by Wichita Mutual Group and had absorbed the group’s existing construction businesses.

Established TQM.

THE GCR TIMELINE:

Wichita Mutual had instructed all the companies in its group to adopt a total quality management (TQM) initiative.

Issued a handbook with detailed instructions of how TQM was to be implemented throughout the group therefore, a rigid practice.

CASE SUMMARY:

Although the TQM initiative had never been formally pronounced a failure, it had faded over the years without having the overall impact that once was hoped of it.

Tyko Mattson convinced that an improvement initiative based on SIX SIGMA principles will be more of a success.

CASE SUMMARY cntd:

“You will never do anything in this world without courage. It is the greatest quality of the mind next to honor” : ARISTOTLE

TQM is an integrated philosophy of management for continuously improving the quality of the product and process- KAIZEN

Greater emphasis laid on the roles and responsibilities of every members of staff within the organization to influence quality- all staff are empowered and quality involves everyone.

Ultimate aim to manufacture products with zero defects.

TOTAL QUALITY MANAGEMENT:

Total Quality Management

•Includes all parts of the organization

•Includes all staff of the organization

•Includes consideration of all costs

•Includes every opportunity to get things right

•Includes all the systems that affect quality

•And it never stops

•It is based on a strategic approach that focuses on maintaining existing quality standards as well as making incremental quality improvements

A handbook approach where every thing is done in copy book fashion.

Involves all people from all processes.

People as a part of quality circle.

Collaborative and cultural approach.

Focus on performance.

A lot of time and effort involved on evaluation.

The TQM approach IN GCR

“If you are not willing to risk the unusual, you will have to settle for the ordinary"- JIM ROHN

Developed by MOTOROLA in 1986.

Six sigma is statistical measure of quality, which reflects the process capability.

Process centered approach that includes process design, performance measurement and continuous improvement

SIX SIGMA:

DMAIC Six sigma approach:

Analyze

Control

DefineMeasure

Improve

Champions: business leaders who lead the implementation of six sigma within the business.

Sponsors/process owners: business leaders responsible for the implementation of process improvements and monitoring process performance.

Master black belts: fully trained quality leaders responsible for six sigma strategy, training, monitoring, deployment and results.

Six sigma support structure:

Black belts: fully trained six sigma experts who lead improvement teams, work on six sigma projects and mentor green belts.

Green belts: fully trained individuals who apply six sigma skills to improvement projects.

Team members (yellow belts): individuals who support projects in their areas.

Six sigma support structure cntd.

Flexible system for achieving, sustaining and maximizing standards.

Linked between understanding customer needs, analysis of facts, data and statistics and managing, improving and implementing processes.

Process centered approach- evidence based decision making, emphasis on negative effects of process variation.

Normalization of processes using DMPO principle.

Six sigma approach in GCR

SIX SIGMA TQM

Focuses on improving quality by reducing the number of defects

Quality as conformance to internal requirements

focus on improving individual operations within unrelated business processes

Six Sigma program focus on improving all the operations within a single business process.

Six Sigma projects require the skills of professionals that are certified as ‘black belts’

Usually a part-time activity that can be managed by non-dedicated managers

Difference between Six Sigma and TQM

Quality

Delivery

Cost

Flexibility

Define

Measure

Analyse

Improve

Control

6

Six Sigma provides the on-ramp and the mechanism to progress up the steps.

How did leaders become leaders ……A accumulation of competencies

Keep calm its questions time!!!

Q.1 How does the six sigma approach seem to

differ from the TQM approach adopted by the company almost 20 years ago ?

Is six sigma a better approach for this type of company?

Q.2

Do you think Tyko can avoid the six sigma initiative suffering the same fate as the TQM initiative ?

Q.3

A major advantage of six sigma: it engages senior management by establishing process ownership and linking process performance to strategic objectives.

In TQM approach a product meets set company standards, while in case of six sigma’s quality to a larger extent is determined by the customer.

TQM doesn’t require full time dedication in quality management processes, six sigma requires certified professionals.

A comparison (ans1)

Tyko sees six sigma as a collection of previously tried and tested management techniques including TQM.

OUR PERSPECTIVE: We believe while TQM is process driven, six

sigma is highly customer drive. Six sigma is a statistical and quantitative

measure of quality and involves setting statistical quality standards. TQM, on the other hand, focuses on doing things right and involves everyone in every process.

The verdict (ans1)

Tyko believed three reasons contributed to failure to TQM:

It faded away and was just extra work. Not accepted by middle management Very few local offices adopted the TQM

philosophy

However, the reason was not with TQM. It was the implementation which went all wrong.

ans2

Hence, YES, Tyko can avoid six sigma suffering the same fate as TQM.

Firstly, company should not consider six sigma as a “quick fix” but as an approach that results in long term systematic reduction of waste.

Ans2 cntd.

Benefits Drawbacks

•TQM involves upper management and six sigma involves all.

•Six sigma well tested and tried than TQM.

•Reduce processes variations.

•High investment.

•Resource hungry.

•Not a quick fix solutions.

•Over complications.

•Low volume, high variety and high visibility.

•For mature and big companies.

Six sigma benefits and drawbacks (Ans3)

Company should go for TQM or six sigma approach simultaneously.

Strategy of adopting new approach is beneficial to whole company.

Proper allocation of resources and time given to the approach will yield better.

Success of a company lies on its right timing and implementation of a proper business and quality approach.

Conclusion……fInAlLy