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MEMBERS:
GABY CARDENAS MEZA
IRINA CONTRERAS BELTRAN
KATHERINE RAMOS MORA
ARIANNA SANCHEZ TELLO
SUBJECT:
QUALITY MANAGEMENT
TEACHER:
SONIA AMBROSSI
COURSE:
8/12
1. - Contrast Leadership for Quality and Lean Six Sigma as quality initiatives for
Xerox. How did their motivations differ? What differences or similarities are
evident in the principles behind these initiatives and the way in which they were
implemented?
The most important and primary motivation that wakened up Xerox and caused it to act
and apply the Leadership Through Quality initiative was losing the market shares to the
Japanese competitors. Due to its innovative products that gave it a competitive
advantage over other competitors in the marketplace during the 1960s, Xeroxs top
management got relaxed and ignored the subject of total quality in the following years,
and viewed quality as a technical discipline rather as a management discipline.
Eventually, the company sustained gross losses as a result of the absence of the total
quality management concept and its associated principles and practices as well. On the
other hand, the failure in mastering the new technology and predicting its social and
economical impacts plus the deficiency in training and educating the employees about
quality, which caused a decrease in the quality focus by the top corporate management,
led to the second crisis. Thus, Xeroxs top management feverishly strived to find cures
to recover the companys focus on quality which resulted in the birth of the Lean Six
Sigma initiative as a strategic plan.
The Leadership through Quality was considered as the magical recipe for the
improvement of the companys performance and bringing it from running at a loss to
profitability. During the 1970s and the early 1980s, Xeroxs products lacked quality and
failed in satisfying its customers needs as well as exceeding their expectations. So,
improving and assuring its products quality was the key aspect in the radical reform of
the organization. And to achieve this objective, the total quality managements
principles and practices were applied and put into the service of making a
comprehensive change in the companys traditional management, and consolidating
quality as a belief and a basic business principle in all Xeroxs activities and work
processes. This led to more encouraging working environment for the employees and
ultimately more customers satisfaction. However, this success didnt last forever.
Again, the market places roles had changed and Xerox failed to catch up. The modern
technology and the insufficient training of Xeroxs employees at all levels were the
reasons behind the second crisis. Yet Leadership Through Quality helped in increasing
the market shares and improving the returns on assets by achieving the customer
satisfaction and the employees motivation, it lacked the continuous inspection of the
customer values and business results based on both market trends and benchmarking. In
contrast, Lean Six Sigma initiative was more effective as a long term strategy and
provided more flexibility to adapt to the market variables and the customers behaviors
since it applied the performance excellence process based on the benchmarking and the
Six Sigma approach. Furthermore, by applying the DMAIC (define, measure, analyze,
improve, and control) methodology, Lean Six Sigma insured the business sustainability
in the market place with minimum coasts and waste as well.
Generally speaking, both initiatives have a number of differences, but they do have
something in common too. For instance, both strategies considered quality as a matter
of management, leading to quality assurance at all levels in the organization which
maintains the competitiveness in the market. Also, they targeted the internal and the
Nowadays people have ideas that are surrounded by the environment around them, then
what for a time was perfect morning or after it is no longer, so the market is constantly
evolving to meet the needs of persons.
From the initiation of leadership through quality, until the organization of products and Xerox
Business Systems won the National Malcolm Baldridge Quality Award in 1989, some the
impacts of greater value leadership through quality included:
Rejection rates of the assembly line were reduced from 10,000 parts per million300
parts per million.
95% of the parts received from suppliers no longer required inspection; 1989, 30 US
suppliers had no defect throughout the year.
The number of suppliers was reduced from 5,000 to less than 500? The cost of parts or
pieces acquired 45% reduction.
Despite inflation, manufacturing costs were reduced 2O%.
The product development time was reduced by 60%.
The overall product quality improved 93%.
Xerox has learned that customer satisfaction, more motivation and satisfaction employees,
resulting in increased market penetration and higher profits. In 1989.