GENEVA CONSTRUCTION AND RISK (GCR)

1. ADNAN AHMED SMBA13005
MANICK DEBARA SMBA13032
AAMIR CHOUHAN SMBA13074

2.  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.

3.  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.

4.  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.

5.  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.

6.  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.

8.  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.

9. • 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

10.  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.

12.  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

13. Analyze
Control
Improve
Measure Define

14.  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.

15.  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.

16.  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.

17. 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

18. How did leaders become leaders ……
A accumulation of competencies
Delivery
Quality
Flexibility
Cost
Define
6
Measure
Control
Improve
Analyse
Six Sigma provides the on-ramp and the mechanism to
progress up the steps.

20.  How does the six sigma approach seem to
differ from the TQM approach adopted by
the company almost 20 years ago ?

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

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

23.  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.

24.  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.

25. 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.

26.  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.

27. 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.

28.  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.