BAB003Revised November 29, 2004 Institute for Latin American Business Quality at Gillette Argentina Jorge Micozzi, president for Latin America of the Gillette Company, looked up from the report on Argentina’s Total Quality Management (TQM) program that was going to be delivered to the corporation’s quality council in early 1999. “As you can see from these business measures,” he told the casewriter, “our TQM program has been very successful. This has been my most important program and Victor Walker, program manager, was the key to its implementation.” Micozzi described the early days of the TQM program when, as general manager of the Argentine subsidiary of Gillette, he assigned Victor Walker as total quality manager, “When this program was launched, Victor helped us see how to implement it. This program has changed the company’s culture. We now believe that we have experienced a 40% benefit in our business as a result of TQM.” He pointed around him at the small, elegant building in a suburb of Buenos Aires that housed the professional and administrative staff of the Argentine affiliate: “This building was designed and built in 10 months by nine quality action teams tackling everything from furnishings to moving. The move occurred over a weekend. It’s tangible proof of our program.” Micozzi had recently been promoted from his position as general manager of the Argentine affiliate to group President. His intention now that he had responsibility for all of Latin America was to assure that every affiliate adopted the model that Argentina had developed: “I’m going to tell them, ‘Go, see and implement in your own subsidiaries.’” Background Every working day at a Gillette plant in … South Boston, 200 men lather up their faces and scrape away the fifteen thousandths of an inch their 10,000 whiskers have grown over the previous 24 hours. Peering into side-by-side mirrors, these volunteers are evaluating razors of the future for sharpness of blade, smoothness of glide, and ease of handling. When they’re finished, the men punch their judgments of the prototype they used into a computer… Anne Donnellon and Susan Engelkemeyer, Associate Professors, Babson College, prepared this case as a basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. The development of this case was made possible with the generous support of the Institute for Latin American Business at Babson College. Copyright © by Babson College 2000 and licensed for publication to Harvard Business School Publishing. To order copies or request permission to reproduce materials, call (800) 545-7685 or write Harvard Business School Publishing, Boston, MA 02163. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means – electronic, mechanical, photocopying, recording, or otherwise – without the permission of copyright holders. Purchased by Milagros Morgan (
[email protected]) on March 23, 2012 327. Gillette opened operations in Argentina shortly after World War I. Boston: Harvard Business School Press.2 billion people around the world used one of more Gillette products. 2 http://www. 4 McKibben. the company was the worldwide leader in 10 consumer product categories. the company’s early presence in Argentina allowed it to remain and grow. a company that churns out so many cutting edge products that it has climbed into a select circle of Wall Street superstars…1 Best known for its razors and blades (Trac II. with 60% of revenues from outside the United States.. 1996.3 Every day.Quality at Gillette Argentina BAB003 These rituals are carried out in a … building emblazoned with a quaint sign proclaiming it to be WORLD SHAVING HEADQUARTERS. it had functioned as an importer and distribution company..’ 3 http://www. In 1998. Cutting Edge Gillette’s Journey to Global Leadership. From 1945. with the exception of 1989. p. and toiletries (Gillette Series). October 14. ‘The Gillette Company – Hoover’s Online. ‘Gillette Knows Shaving – And How to Turn Out Hot New Products. In 1999. while other competitors fled from the country’s political and economic instability. It involved “a sophisticated and perilous hedging of dollars. 1998. the country suffered from regular bouts of high inflation and scarcity. 336. Yet the humble facility is operated by one of America’s premier corporate innovators. the whole exercise seems more than a little archaic. like some throwback to a pre-industrial age.923% in 1989) had precipitated a whole new way of managing the business in consumer goods companies like Gillette. Throughout the tumultuous decades that followed the war.800 people.pe) on March 23. Gillette had introduced more than 20 new products annually. at least 1. nearly three-quarters of them outside the United States. [and] meant communicating almost daily with key suppliers … frequently it meant demanding payment in advance. 5 McKibben. That year was the fifth consecutive year in which at least 40% of sales came from new products.oros@upc. Gillette sales amounted to $10 billion. 1 Grant. and was a top seller of writing products (Paper Mate and Parker Pen) and electric shavers and other small appliances (Braun).gillette. Gillette Argentina never failed to deliver a profit to headquarters. 2 Purchased by Milagros Morgan (mabel. page 207.com/company/ataglance. dental care (Oral-B).html.com.2 The company was founded in 1901 and by 1905 had started operations abroad with a sales office in London and a manufacturing site in Paris. By the late 1980s. The company employed 39. Until 1942.hoovers.’ Fortune. Gordon. Sensor.edu. Linda.4 the Argentine subsidiary built its first manufacturing plant in that year to take advantage of a void created when a German blade company closed its operations. when General Juan Péron nationalized companies in many sectors and introduced extremely high tariffs. and products were distributed in over 200 territories around the world. buying and selling at appropriate times . the Gillette Company was also the leader in batteries (Duracell). 2012 . hyperinflation (with a spike from 388% in 1988 to 4. In recent years. Argentina was a closed economy. the premium-priced MACH3). Once the world’s seventh largest economy.”5 Despite these extreme challenges. p. and its latest. According to a recent history of the company. Manufacturing operations were conducted at 54 facilities in 20 countries. “We started by creating a client survey with sales people. the Gillette Latin American management team began to take stock of the significant changes occurring within their business environment. “Okay. While reading an article that posed the question “who is our customer. with Carlos Rotundo. Rotundo soon moved to the interface with sales. an 3 Purchased by Milagros Morgan (mabel. I’ll pay for it. Michael Sharp. and regulatory changes of huge proportions were put into place. dominated in the past.Quality at Gillette Argentina BAB003 The economic crisis of 1989 brought Peronist presidential candidate Carlos Menem to office. tariff laws all but disappeared. people began to see that soon the company would need to move beyond the financial approach that had. he learned that Michael Sharp was just hiring ODI as the consulting firm to help Gillette Latin America implement quality principles. ODI put on a day and a half workshop on quality for all of them. He prepared two sessions of talks to develop the thinking of his colleagues. then director of manufacturing and logistics. As he saw it. They agreed to start forming teams to continue the work that had started in Rotundo’s
[email protected]. Rotundo started collecting more articles and books on TQM. they could not just continue to manage the business in the way it had been managed in the past. Here. if you want to do this. 2012 . which I saw as a matter of people doing what they should. King wondered about the next hurdle. After an early and successful focus on managing inventories. investigated a number of consultants on total quality management and narrowed the choice to Organizational Dynamics Inc. As trade barriers were coming down with the potential to increase competition and affect Gillette’s market shares. While all of this was occurring in Boston.” Rotundo explained. in all likelihood from foreign companies.” So with Sharp. we’ll do it for you.” As he became convinced of the benefits of TQM and of the qualifications of ODI. the human resource director for Latin America. he decided to broach the idea at one of his quarterly meetings for Latin American general managers. a Massachusetts-based consulting and training company. they turned to total quality management. they realized that to survive and be successful within this new environment. when Jorge Micozzi. King told his managers. the business climate began to undergo profound change. then GM of Mexico put his hand up first. In 1990. and within a year. When Robert G. who wants to volunteer?” King and Sharp recalled that Ken Rule.’” At about the same time. State-owned companies were privatized. When it was finished. Then. we chose ten of the clients’ critiques and assigned one to each team to work on. So. (ODI). saying ‘ask whatever you want or need. For this reason. followed quickly by Jorge Micozzi of Argentina. We put ourselves on their side. of necessity. He was particularly interested in the idea of using crossfunctional teams to achieve better efficiencies. Argentina continued its independent path toward quality. “who is going to do this?” He was persuaded that the “worst way would be to force it down people’s throats. “The most important outcome [of this effort] was a different way of working with sales. King had just come from being general manager of Gillette Mexico where “I was being preached to about the benefits of TQM. At Gillette.pe) on March 23. Quality Comes into Focus The inspiration to focus on quality in Argentina started in the late 1980s. Astute managers began to recognize that competition would soon increase. King started his job in March 1991 as group vice president for Latin America. Thus.” he became excited about the possibilities for using the best practices described there. managers. Focus – development of a problem statement. Mexico introduced a program for TQM that involved one-to-one contracts between individuals working interdependently. The quality action team was the mechanism recommended by ODI for achieving wide participation in total quality programs. Pareto charts. and cost-benefit analysis. The initiative was based on customer focus. called FADE. he found a company already working on an initiative that would start a spread effort in the region. 4 Purchased by Milagros Morgan (mabel. histograms. The teams were assigned facilitators who were trained as team leaders. Develop – determination of a solution and implementation plan. force-field analysis (identification of the forces and factors that support or work against the solution to a problem). King observed that. and a quality director responsible for assuring and improving execution of the quality programs established. and scatter diagrams) as well as brainstorming. a steering committee that oversaw implementation. Over 4. Colombia also introduced the ODI program. was assigned in 1991 to be general manager of the Argentine subsidiary.pe) on March 23. Argentina began its implementation soon after Mexico. employees received specialized training in a four-phase problem-solving process. 4. In 1992. (ODI) developed the quality initiative for Gillette.edu. and continuous improvement. Execute – implementation of the plan and measurement of its impact. ODI sent consultants to Buenos Aires to train the Argentine directors. 2012 . leadership skills. In the beginning. effective meetings. For example. as did Chile. 2. 3.000 people in Latin America went through ODI’s training conducted by Gillette facilitators. In 1993. ODI recommended creating a quality structure. He explained his conversion. The phases were: 1.000 contracts within the first few years of operation. “Brazil was the slowest” to adopt the approach. Team leaders received formal training in areas relating to group dynamics. total participation.Quality at Gillette Argentina BAB003 Argentine who had held various positions throughout the Americas. Analyze – use of data to understand the magnitude of the problem. Getting Serious about Quality Organizational Dynamics Inc. fishbone diagrams. and group conflict.oros@upc. To prepare them for the quality action teams (QATs). the molding machine operator and the pen assembly operator agreed to use quality principles to improve a low rate of molded assembly due to inferior piece parts. The one-to-one contract system was so successfully introduced in Mexico that it produced over 10. and 20 others who would become the trainers of the rest of the organization. QAT members were also trained in seven basic quality tools (check sheets. Jorge Micozzi became an immediate convert to TQM. control charts. consisting of a quality council that gave strategic direction concerning quality initiatives. run charts. Argentina started applying both the ODI approach with teams as well as the contract approach. systematic support of the effort. This program was implemented very successfully. measurement of results. we needed to be better. This was not just because of the enrichment of ideas that he thought came from teams but also because he thought it would serve as an integration tool within the company. he set about creating the new Gillette Argentina TQM. I used to care only about what my group wanted or needed. 5 Purchased by Milagros Morgan (mabel. “It created lots of paperwork.” Micozzi and his directors became the quality council. Micozzi assigned him to the new post of total quality manager. “eliminating the usual departmental barriers and/or selfish attitudes. We were fighting for our interest. There he had been the business manager for the writing instruments product line. To compete and keep our market share. They refused to sign them. solutions. you get far better results. the approach that was being successfully implemented in Mexico. Workshops were conducted with all personnel to inform them about the new culture and working style to be achieved through quality action teams. had recently returned from Mexico. Within months of taking that position. taxes and accounts payable supervisor in the Treasury Department. more creative than any others. he survived and underwent extensive rehabilitation therapy for several months. Miraculously. the recommendation was that. more competition would come in from the U. he take a job that would not entail much stress initially. results from principles of working in crossfunctional teams were better. faster. we solved problems alone and didn’t understand how our work cost other areas … It was hard in the beginning. Rotundo delegated responsibility to investigate the concerns to the newly hired quality manager. richer.” The facilitators took their concerns to Rotundo under whose direction the quality program was. In December 1993. as his first quality task. People liked the idea of quality action teams but rejected the contracts.pe) on March 23. We needed to improve our decisions and processes because I could see that as our Argentine market opened. a New TQM Approach Victor Walker. Ana Maria Bazan. 2012 . in the beginning. with Carlos Rotundo as program director.edu.Quality at Gillette Argentina BAB003 “As I preach to almost anyone who will listen: I came to the conclusion soon after we launched the TQM program in Argentina that the recommendations.” She characterized the challenge of involving others: “Before TQM. Walker was in a near fatal car accident that left him in a coma for many weeks. but worked against the interests of the company overall. When. we were not accustomed to team work. When you put people from different disciplines together to improve a process or a ratio.” With Micozzi’s and Rotundo’s blessings.oros@upc. and Europe. and easier to work with. he found that people felt it was too bureaucratic and unnecessary. The role of team sponsor was explained: a member of Micozzi’s operating committee who helped clarify the team charter. called “facilitators. When he was able to return to work. Walker researched the quality movement extensively. Gillette Argentina. One of their earliest decisions was to introduce the use of contracts for achieving improved quality. He became convinced that the action team approach would be most effective in the Argentine company.” Bazan and the other quality facilitators became frustrated with the contract approach. Victor Walker. an Argentine who had worked in several manufacturing assignments for Gillette including a stint in the Boston headquarters. was one of the original quality trainers.S. Walker investigated the complaints about the “contract” approach to quality. to change the culture and realize TQM’s business potential. Walker’s role was to monitor teams’ progress. increasing participation.pe) on March 23. offer workshops on problem-solving and statistical analysis. Meeting the Challenges of Quality Once the quality action teams were underway. which was made up of managers from every functional area and facilitated by Walker. Because “the culture of teamwork demands significant changes from traditional leadership style. the team may avoid doing its own work. He was also an example of quality principles. We thought this was 6 Purchased by Milagros Morgan (mabel. One manager described the committee’s operating approach: “all decisions were the result of ample and deep discussions within the committee and only implemented once consensus is reached. by [your] giving orders and suggestions.” The council’s support enabled the steering committee to develop its own esprit de corps. and to inspire everyone. you have to be patient. as Walker put it. Walker was “an apostle. “the systematic support that the quality council displayed in the company towards TQM certainly was a cornerstone in the development of this working culture. where he routinely inquired of his executives how TQM was evolving in their functional areas. we noticed that we had the least participation on our quality action teams from the sales department. “TQM cannot be dictated from above. Initially. and sustaining momentum. Teams were guided in their process by the ODI methodology and by sponsors. facilitated by the TQM manager and led by the program director.” singing the praises of TQM and with his energetic involvement. people were asked to participate on teams addressing issues of interest to them. He understood well the challenge that.Quality at Gillette Argentina BAB003 supported the team in any way needed. “Early in the program. “be careful. execution of objectives with a sense of urgency. The quality council developed into a cohesive force for cultural change. and to win people over by persuasion and with hard data on the benefits of TQM. 2012 . Micozzi.edu.” Increasing participation evolved slowly in the company.” Micozzi’s influence paid off.” Walker found that he often had to remind the sponsors. the steering committee worked as a collegial body that conducted TQM in the company. Micozzi described the efforts he had to make behind the scenes to persuade his executives to give their full support to the quality program. The steering committee. According to many of his colleagues. whom Walker described as a “TQM zealot.” was deeply involved in winning the support of all of his operating committee. a prophet. identified appropriate cross-functional teams and sponsors to work on the top client priorities. In the words of one executive. Made up of important and well-respected managers from each functional area. Not everyone was pleased to participate. the steering committee turned its attention to the early problems endemic to most TQM programs: getting full management support. He signaled his own commitment in every meeting.oros@upc.” Another survey of clients by an external consultant provided the starting point for the new quality action teams. and “helped the team achieve its objective with recognition of their empowerment.” Many saw “the major role displayed by the steering committee as a keystone for achieving Argentina’s success.” according to Walker. He is very involved.” He said that by 1998. he participates and helps them. Today 80% of Gillette’s sales force is participating in QAT’s. Mario Pomar.” To sustain the momentum that the TQM program developed at Gillette Argentina. He has a very strong character.) Finally. and transmits real commitment – not just a cassette— but real. the norm became that people volunteered to participate on teams they heard were forming. which made them less demanding on people’s time. Walker was well known for his constant oversight of teams. maintained that people liked working on the quality action teams because they learned about the whole company and through the experience. The steering committee created a Star of Quality award that would be given annually to four employees from different parts of the company who contributed the most that year to TQM in Argentina.” As teams became more proficient in working together. To guarantee that teams would achieve that. “people enjoy[ed] being part of TQM because they can see their ideas are respected and even implemented. One each was selected from headquarters and factory administration. Walker and others felt that the numerous calls at year’s end to determine. Colleagues described his approach as tenacious but supportive. he supports and helps everyone in the company with all related subjects. The emphasis on client needs also made them more compelling.” One early doubter of TQM who became a true believer characterized Walker’s personal contributions to TQM: “Victor has a very special attitude. First. when a team has problems. just asked ‘when’s it going to be done?’ and then followed up at that time.pe) on March 23. The first was the inclusion of TQM participation measures in the annual performance appraisal.’ My response was ‘you have to. gained “a global perspective. they also became more efficient. “how many teams did I serve on this year?” showed the depth of commitment that people felt to the program. (Exhibit 1 is a partial listing of the various team projects undertaken at Gillette Argentina). you had to have sales people on your team. if your goal is improved customer satisfaction. it was agreed that the steering committee would create annual objectives for the TQM program. Eventually. the results were amazing. very good analysis. teams were required to specify early in their process how their efforts would contribute to business outcomes. 2012 .oros@upc. Walker initiated two new aspects of the effort in 1994 and 1995. He would routinely contact team leaders to get progress reports and those leaders knew that Walker would be reporting this to the operating committee. So I had a chat with the chap responsible for sales and told him this. it was decided that the team’s task would not be concluded until they made a presentation concerning their work and its benefits to the Operating Committee. factory workers. The second was the creation of a special recognition program called quality stars. Over time. new steps in the process were created. His response was ‘you can’t take people out of the field to participate in teams.’ After nine months of such conversation.edu. “he gave no compulsory deadlines.Quality at Gillette Argentina BAB003 incompatible with our quality program’s main purpose of customer satisfaction. (Exhibit 2 shows the form used in the benefits quantification method developed by a QAT in 1997 and used by every team thereafter. 7 Purchased by Milagros Morgan (mabel.” To increase the likelihood of successful execution of team objectives. sales manager of local sales service. Not insignificantly. plus all non-monetarily quantified benefits. Conducted by Research International. The prominent display of these awards in the stars’ workplace bespoke the value attached to them. Gillette Argentina also realized significant financial benefits in the period that followed the implementation of the total quality program.Quality at Gillette Argentina BAB003 and field sales. comprehension among areas that these changes can only be done with the participation of people. Walker estimated that the profitability increase attributable directly to TQM were $17.” he argued “were: first. 8 Purchased by Milagros Morgan (mabel. Outcomes of TQM According to Carlos Rotundo. and the average profit growth in this same period was 22%. The survey found that Gillette went from 6.0 by 1994 and to “Best in Trade” by 1998. e. Announcement of the awards was made at a banquet attended by every employee of Gillette Argentina. a U. These stars formed a group that met to suggest how to improve and deepen the TQM program. we listen to others’ problems.edu. the company conducted another audit of customers to verify that its TQM program was having the business benefits it sought. On one specific measure of customer satisfaction of great importance to the large retailers who were Gillette’s main customers.” Ana Maria Bazan expressed similar sentiments and elaborated.oros@upc. while recognizing the costs of TQM in terms of the time spent in meetings. and POE (period operating expense) went down by 40%.g.-based consultant.5 on a 10-point scale of satisfaction in 1991 to 8. Conflict doesn’t disappear. Inventory turns went from 4. 2012 . the index of “complete order delivery” went from 85% in 1994 to 97% in 1998. Annual sales grew by 19% in the years between 1993 and 1998. Finally.” The tangible benefits to customers of Gillette Argentina’s quality program were clear-cut in 1998.8 million dollars between 1993 and April 2000. that “people have developed the habit of working to remove the source of their problems. those who left and come back say they like the way we work now. and second. “Our most important results.” Mario Pomar.pe) on March 23. He also felt that the culture had become one of real empowerment. but you can work to manage it.8 to 8. argued that another important outcome of TQM was the change in culture that heightened everyone’s focus on customer satisfaction. he believed that the culture had changed in another aspect. That year. and we work with our clients in the same way … we care about the others’ interests.7. and Eveready. Unilever. mainly related to external clients and internal process improvements. the creation of a team-work climate. the TQM program generated benefits to the company that were both tangible and intangible.. in which people were truly trusted and therefore felt confidence in their own decisions. the survey solicited the opinions of the major wholesalers and retailers in Argentina comparing Gillette with major competitors in each product line. Bic.S. “people say they have found another way of working. and we work together to solve problems. ROA (return on assets) increased by 60% in the same period. Colgate. Each awardee received a set of elegant silver pens and a specially designed sculpture. We don’t work with orders but with consensus. 9 Purchased by Milagros Morgan (mabel. According to them. you are bound to fail. So there is still great opportunity for companies that put the customer first. The top four customers are 80% of the business. whether the customer is Wal-Mart or pen assembly. the quality initiative in Mexico. and Wal-Mart.” However.” Both knew that Micozzi was realizing considerable business benefits in Argentina and expected him to continue to spread the word again throughout Latin America. Nevertheless.” There were also several Latin American subsidiaries where the quality initiative had never really taken hold.” Jorge Micozzi knew it too.” King elaborated: “the lasting elements of TQM are the focus on customer satisfaction.edu. things are changing rapidly. Bob King.” To increase market share elsewhere on the continent and to preserve it in Argentina. Working as a team is more important than ever. Sharp added. Due to the introduction into the retail market of major US and European retailers like Carrefour. In 1999. He thought that “as a business philosophy. it would not be easy. King’s words. who left his Latin American group vice-president position in 1995 to become vice president of international and most recently executive vice president for commercial operations for the Western Hemisphere. continuous improvement. he felt that the benefits of such concepts and philosophies were that “they challenge you to reinvigorate your processes and your business. who in 1999 was the human resource director for Gillette’s Africa/Middle East region. when TQM was first implemented in Argentina. he felt quality principles had to be the way the company worked. However. “The basics of TQM like overall business process mapping. Promodes. the opportunity and need for ongoing business transformation were great. but without teamwork and customer focus. both internal and external and the removal of barriers between departments.Quality at Gillette Argentina BAB003 Conclusion Although quality was thriving as a business process in Gillette Argentina. TQM per se has faded. as he said. “in Latin America now. and working as a team are still critical to success. 2012 . Success of the enterprise depends on total customer satisfaction. the technology being used for point of sales is as sophisticated as any in the world. Ahold. it was moribund as a driving force in other parts of the company. His only real question now was how. felt too that TQM had become an “outmoded” phrase. However. “call it the way you want. felt that TQM was not a particularly current concept at Gillette in 1999.pe) on March 23. the techniques and principles are still evident. where it had once thrived was dying in 1999 because “the people who were the real zealots have left.oros@upc. now or back then in 1993. openmindedness to change.” Mike Sharp. He was also persuaded that the Argentine quality program needed to be exported to the rest of Latin America. with all the restructuring that Gillette is going through. Diminish purchasing lead-times . Solve collection problems with SSS.200 757. Diminish unloading time in warehouse. In-house aerosol caps molding – DCV’s reduction. Contract filler service to Gillette.Massive line. improv.403 480. Reduce assembly time of Trac II razors.000 50. New packaging system for Oral-B toothbrushes.000 104.000 10.976. New system for sales to personnel.000 12.000 100.000 310.000 19.000 587. ANNUAL SAVINGS 10. Method improv. Health protection Cost reduction of blistering process-Oral-B & WI Optimize client’s list Analysis of Duracell former accounts.non prod. Cost savings Profitability Client focus Cost savings Profitability Profitability Cost savings Cost savings Tech.C.000 5000 2. Minimize issuance of manually made Credit Notes New packaging system for Sensor one-up. 2012 . Supplier’s proposal show.000 27. Self-budgetary control. Integration with Duracell in Argentina. Method improv.130 450. Inventories and SKU’s reduction in WI line.000 203. Profitability improvement plan in P. Modify 'order-invoicing' process improving deliveries.000 107.000 CATEGORY Method improv Method improv. Cost savings Profitability Profitability Profitability Cost savings Cost savings Profitability Cost savings Cost savings Sales increase Method improv. '98 world cup among clients.000 1. matl's.
[email protected] 60. Integration of Parker/Sylvapen operations to Gillette Cost reduction in female deodorant products. thickness reduction for ER-49 blister.600 1.000 95.V. Method improv. .000 100. Cost savings Profitability Method improv.000 270. Orders shipped complete.Quality at Gillette Argentina BAB003 Exhibit 1 Quality at Gillette Argentina Quality Action Teams and Estimated Cost Savings QAT 7 8 9 16 & 31 17 18 19 22 25 27 28 45 46 51 53 56 62 72 78 79 80 95 97 104 117 119 121 122 128 131 132 136 137 159 DESCRIPTION JIT in manufacturing operations.000 65.000 17.000 100.000 1. Profitability Profitability Cost savings Method improv. New building: QAT's savings Cost reduction opportunities in male deodorant line Profitability improvement in WI.400 60.100. Rationalize daily invoicing information.693.000 500. New coloring method in molding area. Client focus Method improv. Care line.000 187. 10 Purchased by Milagros Morgan (mabel. Increase efficiency in Coster machine.000 151.pe) on March 23.000 50.edu. Credit invoices -24760 law.000 1.000 34. Improve handling of palletized finished goods. Building of new Toiletries manufacturing plant.000 218. Toothbrushes packaging. Partnership with vendors. Inventory reduction in WI line Integration of Gillette Uruguay to Argentina Cost reduction of packaging materials for WI.Total: 200. nearly finished.533 11 Purchased by Milagros Morgan (mabel.pe) on March 23. '97 vs.831. '95 inventory turnover improvement.000 217.000 284.000 100.000 98.000. Profitability Profitability Profitability Profitability Profitability Profitability Cost savings Method improv. ADDITIONAL SAVINGS: Projects already finished with economical impact being evaluated Sub . Method improv.edu.000 60.000 CATEGORY Cost savings Pers.O.C. ’97 inventory turnover improvement ANNUAL SAVINGS 20. '96 inventory turnover improvement ’98 vs. 2012 .I.000 GRAND TOTAL: $ 17.000
[email protected] 5.000 99.000 20. Method improv. excellency Profitability Profitability Methods improv. Clear Gel plastic parts.000 POTENTIAL SAVINGS: Projects underway. G. implementation Self-service stores / Central warehouses '96 vs.000 175.000 210. with favorable monetary impact Sub-Total: 550. Banking system for personnel within Gillette.300 154.Quality at Gillette Argentina BAB003 Exhibit 1 (Continued) Quality at Gillette Argentina Quality Action Teams and Estimated Cost Savings QAT 160 162 192 194 196 204 206 223 224 226 243 256 N/A N/A N/A DESCRIPTION Use of laptop computers by Stationery salesforce. CMD operations for WI “Prestige” line in GMC Stationery Products line.000 195. 2012 .Quality at Gillette Argentina BAB003 Exhibit 2 Benefits Quantification Form QUANTIFICATION OF BENEFITS QAT: # ________ I) Define which category corresponds the subject of your team: Processes Sales Int. 2) verify with proper study when work is concluded Starting value Final value III) Indicate the "added value" to the process ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 12 Purchased by Milagros Morgan (
[email protected] Company image .1 to 10 Survey a) If a "scale". client Company image .external II) Final results measurement will be in: $$$$$ Measurement scale . client Ext. 1) estimate value of actual measurement / starting point. indicate the factors to be used and their weighing value: FACTORS 123456_____________________________________________ _____________________________________________ _____________________________________________ _____________________________________________ _____________________________________________ _____________________________________________ WEIGHING _________ _________ _________ _________ _________ _________ b) If it is a "survey" or "scale".pe) on March 23.