Improvement Initiatives in GCR Insurance
Improvement Initiatives in GCR Insurance
initiatives in
GCR Insurance
Case for Operation Management
Aditya Ardiani
Bambang Simaremare
Ferdinand Cahyadi
Johannes Wongkar
Ridho Trimanto
HISTORY
Founded in 1922.
Insurance for building
contractors and construction
companies
In 1950 start to grow bigger
In 2000 was bought by
Wichita Mutual Group
Geneva
37 local offices
890 agents
Previous improvement
initiatives
Adopt TQM
Run by quality committee, 8 people
representative of each department.
Organize training in quality techniques.
Company allocates small improvement budget
for each department.
Improvement plans still required annually, but
the committee has stopped meeting few years
ago
Annual award meeting has become a general
communication meeting between staffs and
TQM
Total Quality Management (TQM)
is an incorporative philosophy
orviewpoint of management for
continuously improving the quality of
products and processes at every level.
Its popularity reached its peak in the
late 1980s and early1990s
Six Sigma
Six Sigma is a management
technique used to execute quality into
itsproducts and processes. It was first
implemented by Motorola a U.S.
company in the year 1986
Methodologies
Define, Measure, Analyze, Design
and Verify often called DMADV is
used for creation of the products and
process designs
Define, Measure, Analyze, Improve
and Control often called DMAIC is
utilized to improve processes
Question 1:
How does the Six Sigma seem to
differ from the TQM approach
adopted by the company almost
20 years ago?
TQM
1. It was always seen as
something extra and taking
time away from doing normal
job.
2. Can't impose the structure
of an improvement initiative
from the top.
3. Everything had to be done
according to the handbook.
The cost of quality was
measured for different
department according to
handbook too.
4. Only a very few of the local
office in the world ever
adopted TQM philosophy
Six Sigma
1. Can reduce process variation,
which will have a significant
impact on operational risk
2. Engages senior management
actively by establishing
process ownership and linkage
to strategic objectives
3. It forces a rigorous approach to
driving out variance in
processes by analyzing the root
cause of defect and errors and
measuring improvement.
4. Combine some of the best part
of existing improvement
methodologies, tools and
techniques
Question 2:
Is Six Sigma a better
approach for this kind of
company?
Question 3:
Do you think Tyko can avoid
the Sic Sigma initiative
suffering the same fate as the
TQM initiative?
Performance Improvement
Apart from operation strategy matrix
(Quality, Speed, Cost, Dependability,
Flexibility). Performance improvement is
the ultimate objective of operations and
process management.
o Competitive pressure increase
o The nature of world trade is changing
o New technology
o Scope of operation widened
Managing Improvement
Total Quality
Management (TQM)
Lean
Six Sigma
Business Process
re-engineering
TQM
Six Sigma
Conclusion:
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