Gillette Argentina

Group 9
Rinkesh Kumar Gupta
Kumar Gautam Ranjan
Ankit Kumar
Pranshu
Gillette (1999)

Product Operations Sales

1. Razor & Blades 1. Manufacturing at 54 • In 1999, sales
2. Duracell batteries facilities in over 20 amounted to $10
3. Oral B (dental care) countries billion (60% outside
4. Toiletries 2. Distribution over 200 U.S)
5. Parker Pen & Paper territories around the • 1.2 billion people uses
Mate world one of Gillette
6. Electric Shavers 3. 39,800 employees products, daily
7. Braun (2/3rd outside U.S) • 40% sales came from
new products
Gillette - Argentina

 Until 1942 it has functioned as importer and distribution company

 Shortly after world war1, German blade company closed its operations
 Taking the advantage of void, Argentine subsidiary build its first
manufacturing plant
 From 1945, nationalization of companies started and high tariff were imposed
 By the late 1980s, due to hyperinflation (with a spike from 388% in 1988 to
4,923% in 1989), business faced severe threats, but Gillette Argentina never
failed to deliver profits except 1989
Quality came into focus
 WHY?
 Previously a nationalist economic environment, product didn’t mattered
 Now with trade barriers coming down resulted in rise of potential competition
 Gillette Argentina leadership understood it had to adapt and restructure to meet competition
 In 1980s Carlos Rotundo starts quality initiatives
 General Manager Jorge Micozzi took a TQM class in early 1990s
 Became a huge proponent
 Major driving factor in success
 ODI Consultants brought in by Gillette Latin America to help implement TQM
 Expert help demonstrated successful path forward
 Strong leadership buy-in
Getting Serious about Quality

Organizational Dynamics Inc. (ODI) developed the quality initiative for Gillette.
 customer focus
 total participation
 systematic support of the effort
 measurement of results
 continuous improvement

Contract approach- one-to-one contracts between individuals working

interdependently.
Quality Action Team (QATs)

Employees received specialized training in a four-phase problem-solving

process, called FADE.
 Focus – development of a problem statement.
 Analyze – use of data to understand the magnitude of the problem.
 Develop – determination of a solution and implementation plan.
 Execute – implementation of the plan and measurement of its impact.

QAT members were also trained in seven basic quality tools (check sheets,
control charts, fishbone diagrams, histograms, Pareto charts, run charts, and
scatter diagrams) as well as brainstorming, cost-benefit analysis.
Gillette Argentina, a New TQM Approach

 Contract approach was removed as it required lots of paperwork.

 Action team approach – It eliminates the usual departmental barriers and/or
selfish attitudes.
 Workshops were conducted with all personnel to inform them about the new
culture and working style to be achieved through quality action teams.
 The steering committee was formed, which was made up of managers from
every functional area and facilitated by Walker, identified appropriate cross-
functional teams and sponsors to work on the top client priorities.
 Team was guided using ODI methodology.
Challenges of Implementing Quality

 Getting full management support

 Increasing participation
 Execution of objectives with a sense of urgency
 Sustaining momentum.

“TQM cannot be dictated from above; you have to be patient, and to win people
over by persuasion and with hard data on the benefits of TQM”
- Victor Walker
OUTCOMES OF TQM
Intangible Benefits -
1.Comprehension of objectives accomplished with people participation
2.Creation of a team-work climate
3.Customer satisfaction approach
4.Employee empowerment
Tangible benefits
1.The survey found that Gillette went from 6.5 on a 10-point scale of
satisfaction in 1991 to 8.0 by 1994 and to “Best in Trade” by 1998.
2.index of “complete order delivery” went from 85% in 1994 to 97% in 1998
3.Significant financial benefits -
 Annual sales grew by 19% in the years between 1993 and 1998
 The average profit growth in this same period was 22%.
 Inventory turns went from 4.8 to 8.7, and POE (period operating expense)
went down by 40%.
CONCLUSION

The Lasting elements of TQM are

 Focus on customer satisfaction -both internal and external
 the removal of barriers between departments
 Success depends on total customer satisfaction

The basics of TQM critical to success are

 Reinvigorating overall business process mapping
 continuous improvement
 open mindedness to change
 working as a team