Total Quality Management

• This presentation is for EDUCATIONAL PURPOSES ONLY, in partial fulfillment in research for TOTAL QUALITY MGT.

• Information given in this presentation where all came from the references that the researchers (students) explore from the internet. The references where at the end of the presentation. Thank you.

background

Products

History

Important Facts

Leaders

Location

HistoryYear Event “Legend Behind Lenovo”

1984 11 computer scientists in Beijing, China founded Lenovo, as the New Technology Developer Inc., it was soon renamed as Legend.

1987 Legend expanded its activities to trade and distribution and became the first distributor for AST

1988 Legend gained technology capability and market knowledge by trial-and-error

1990 mark the start of manufacturing and technology development phase of Lenovo

1993 Became the largest Pc manufacturer in China.

1998 Establish the first PC shop.

2002 R&D funds mainly invested in infrastructure construction, laboratory construction, wage of technician, R&D of materials input.

2003 Legend innovated a serial of new products .

2004 Legend change its English name to Lenovo

year Event

2004 Legend announced the adoption of its new “Lenovo” logo in an effort for its global expansion.

2005 completed the acquisition of IBM's Personal Computing division. Lenovo built strong presence in the international market.

2006 Lenovo established Center of Excellence (COE) located in Singapore, to develop advanced technology for international expansion

2009 Lenovo maintained its lead position in technology innovation.

2011 in order to boost Lenovo's Japanese sales share, Lenovo formed a joint venture with Japanese electronics firm NEC to produce personal computers.

2012 Lenovo announced an investment of US$793 million to construct a mobile phone manufacturing and R&D facility in Wuhan, China.

History

Products

• They are defining a new way of doing things as a next generation global company.

• They have their core strength in China, rapid growth in emerging markets and a unique global footprint.

• The expansion from East to West—introducing their newest products in China and then spreading across the globe.

• they have created a balanced business model and strategy that take maximum advantage of profit and investment across both core and new businesses.

Important Facts

The founder of Lenovo

Liu Chuanzhi : He helped Lenovo break with traditional concepts

Current CEO

Yang Yuanqing joined Lenovo in 1989 as a salesman, and rose rapidly through its ranks to CEO in 2005. In less than three decades, with his predecessor, Liu Chuanzhi, Yang Yuanquing has spear headed Lenovo’s ascend to its current position. Yang Yuanqing is Chief Executive Officer and an executive director of the Company and has been appointed as the Chairman of the Board on November 3, 2011.

Current Top Management

From left to right: Gianfranco LANCI, LIU Jun, WONG Wai Ming, Gerry P. SMITH, Dr. Peter HORTENSIUS, CHEN Xudong, HE Zhiqiang, QIAO Jian, David ROMAN, WANG Xiaoyan, Jay CLEMENS, Aymar de LENCQUESAING

Location

how does it practice TQM

Tqm practices

ISO

Quality Awards

1. ISO 9001 (Quality)

2.ISO 14001 (Environmental)

3.OHSAS 18001 (Health and Safety)

4.Lean Six Sigma

Tqm practices

ISO 9001 (Quality)

• Lenovo strongly embraces the ISO 9001 commitment to an effective quality management system, and is dedicated to exceeding industry standards when it comes to detail, product quality and product reliability. Building upon the company’s heritage, Lenovo combines the talents of the innovation-driven China Legend team and the quality heritage from the former IBM Personal Computing Division, including some of the industry’s top PC engineers to create a powerful global company focused on exceptionally engineered products.

Example of activity

• Prototypes are extensively evaluated, and final products undergo rigorous testing to ensure that they meet stringent standards specific to their application and use before they are cleared for shipment. Lenovo’s Technical Evaluation Center provides information and recommendations to Lenovo Engineering. Lenovo’s Lessons Learned feedback loop aids in refinement and the maturation of our processes and elimination of recurring problems. As a result, Lenovo’s product repair action rates are among the lowest in the industry.

ISO 14001 (Environmental)

• Lenovo has been collecting, measuring, monitoring, managing and reporting its greenhouse gas emissions inventory. In compliance with the elements given in the ISO 14064-1: Greenhouse gases - Part 1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals and according to the World Resources Institute and World Business Council for Sustainable Development’s Greenhouse Gas Protocol Corporate Standard: A Corporate Accounting and Reporting Standard.

ISO 19001 activity

• Lenovo has been collecting, measuring, monitoring, managing and reporting its greenhouse gas emissions inventory. In compliance with the elements given in the ISO 14064-1: Greenhouse gases - Part 1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals and according to the World Resources Institute and World Business Council for Sustainable Development’s Greenhouse Gas Protocol Corporate Standard: A Corporate Accounting and Reporting Standard.

OHSAS 18001 (Health and Safety)

• Corporate strategies, policies and guidelines have been designed to support this commitment to product safety. There were no significant accidents involving Lenovo employees, fires that resulted in property damage or regulatory violations at any of our locations in which we do business. Standardizing Lenovo’s Global Occupational Health and Safety (OHS) organization across the company’s operations has helped establish world-class standards and procedures to ensure employee workplace safety and prevent work-related injuries and illnesses.

OHSAS 18001 activity

• Lenovo is committed to ensuring that our products are safe throughout their life cycle, including manufacturing, transportation, installation, use, service and disposal. Corporate strategies, policies and guidelines have been designed to support this commitment to product safety. There were no significant accidents involving Lenovo employees, fires that resulted in property damage or regulatory violations at any of our locations in which we do business.

Lean Six Sigma

LEAN

• reduce the number of things in process

• rapidly improve processes and drive results.

• speed, efficiency, and waste.

SIX SIGMA

• quality that strives for near perfection

• eliminating defects

• analysis of a problem’s root cause

LEAN SIX SIGMA ACTIVITY

• Lenovo leveraged Lean Six Sigma and LSS tools to enable modest improvements in its Reverse Logistics Operations. Successes since 2008 include:• Creating Lenovo proprietary Shop Floor Control systems• Creating operation flexibility to handle all brands, models and platforms of products• Creating universal packaging to support multiple platforms and models• Creating alternate work schedules to implement a seven day per week operation, in lieu of adding space or equipment costs• Creating in-house Test capabilities for refurbishment of all systems• Creating multiple re-sale vehicles (Web, Lots, Brokerage and Retail)

• Two years experience of black belt. Teaches lean six sigma

MBB

• Full time project leaderBlack belt

• Focus on tools usage and lean principle application

Green Belt

• Lean Six sigma awareness

Yellow Belt

Six Sigma

Why does it practice TQM

Advantage and

disadvantages

Competition

Net Sales

Advantages• Constancy of purpose for Improvement

• With TQM the company can initiate what they value. Innovation is in the DNA of Lenovo and with this value the company keeps the rapid but smooth improvement. Lenovo’s commitment to innovation continues to deliver the best products in the industry.

• Proper Mind-set of Choosing Supplier

• With TQM, the Lenovo choose supplier partnership in the 4 basis of supply. As a member of the Electronic Industry Citizenship Coalition, Lenovo has implemented a full EICC compliance program with suppliers, using formal contractual agreements separate from production or service agreements and statements of work.

• Good Relationship with Stakeholders

• Potential stakeholder input is evaluated by Lenovo subject matter experts including Lenovo’s Sustainability Working Group, made up of representatives from most major business areas.

• Happy Employees

• Lenovo believes and invests heavily in the concept of Total Rewards, which consists of five key elements: compensation, benefits, work-life balance, performance and recognition, and development and career opportunities.

• Excellent Leadership

• Responsible and ethical governance is the foundation of a sustainable company. Lenovo provides detailed information about its governance structure. The Company regularly reviews its corporate governance system to ensure it is in line with international and local best practices.

• Delighted Customer

• The company assures that every customer will be pleased to the product that they buy.

• Requirements to the Society

• One of the dimensions of service quality is that the product should fulfill both the stated and implied requirements imposed by the society. The Lenovo is doing recovery and recycling trends.

33.8

29.5

21.5

16.6

14.9

16.3

13.9

35000

30000

25000

20000

1500018000

14000

2012/2013 2011/2012 2010/2011 2009/2010 2008/2009 2007/2008 2006/2007

Net Sales

China43%

North America15%

EMEA22%

Asia Pacific/ Latin America

20%

Sales by Region

References

Ahrens, N. and Zhou, Y. (2013). China’s competitiveness: Myth, reality and lessons for United

States and Japan. A case study of the CSIS Hills program on governance, 1-44.

Sun, Z., Xie, W., Tian, K. and Wang, Y. (2013). Capability accumulation and growth path of

Lenovo. TMD Working paper, 1-23.

The Economist (2013). Chinese industry: From guard shack to global giant. Retrieved from

http://www.economist.com/node/21569398/print

Datamonitor (2007), Lenovo Group Limited Company Profile. Datamonitor business

information center. 1-30.

Lenovo (2010). Annual Report [Adobe Digital Editions version].Retrieved from

http://reportonlenovopc-130502085622-phpapp01

Lenovo (2011). Sustainability Report [Adobe Digital Editions version].Retrieved from

http://www.lenovo.com/social_responsibility/us/en/FY2011_Lenovo_Sustainability_Report.pdf

• Lenovo (2012). Sustainability Report [Adobe Digital Editions version].Retrieved from

• http://www.lenovo.com/social_responsibility/us/en/FY2012_Lenovo_Sustainability_Report.pdf

•• Lenovo (2013). Sustainability Report [Adobe Digital Editions version].Retrieved from

• http://www.lenovo.com/social_responsibility/us/en/FY2013_Lenovo_Sustainability_Report.pdf

•• Google Drive (2015), ISO Certificate 9001 [Adobe Digital Editions version]..Retrieved from

• https://docs.google.com/viewerng/viewer?url=http://www.lenovo.com/social_responsibility/us/en/Lenovo_ISO_9001_Corporate_Certificate.pdf

•• Google Drive (2015), ISO Certificate 14001 [Adobe Digital Editions version]..Retrieved from

• https://docs.google.com/viewerng/viewer?url=http://www.lenovo.com/social_responsibility/us/en/Lenovo_ISO_14001_Corporate_Certificate.pdf

•• Google Drive (2015), OHSAS Certificate 18001 [Adobe Digital Editions version]. Retrieved from

• https://docs.google.com/viewerng/viewer?url=http://www.lenovo.com/social_responsibility/us/en/Lenovo_OHSAS_18001_Corporate_Certificate.pdf

•• Lenovo (2014), Our company- United States. Retrieved from

• http://www.lenovo.com/lenovo/us/en/our_company.html

•• Lenovo (2014), Lenovo Lean Six Sigma. Retrieved from

• http://www.glassdoor.com/Salary/Lenovo-Lean-Six-Sigma-Master-Black-Belt-Salaries-E8034_D_KO7,39.htm

FIN.

Students dilemma