NATIONAL QUALITY CONFERENCE 2001 Driving Improvement Through Quality Systems

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NATIONAL QUALITY CONFERENCE 2001Driving
Improvement Through Quality Systems

• Barry OBrien
• Director
• Quality Strategic Projects
• Waterford Crystal

8th November 2001.
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Format

• The Background
• The Growth
• Product Outsourcing
• Brand Leverage
• 3rd Party Warehousing Distribution
• Quality Systems
• Birth of a Strategy
• Global Quality Systems Project
• Quality Software System
• Today Improvements
• Results

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Waterford Crystal

• A Division of Waterford Wedgwood plc
• Brands-
• Waterford
• Marquis
• John Rocha
• Stuart
• Jasper Conran

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Waterford Crystal Background The Very Old
Days

• 1947 Business resurrected after
• 100 years
• 1955 First profits
• 1960s/1970s Great growth years
• Brand firmly established

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Waterford Crystal Background Storm Clouds
Looming

• Late 1980s/early 1990s
• Severe Financial Crisis
• Causes
• Dramatic fall in the value of dollar
• Succession of inflationary labour agreements
• Lack of competitiveness

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Waterford Crystal Background The Changes

• Three Major Labour Agreements in 4 years
• 1990 14 Week Strike
• Employee Numbers Halved
• IR35M p.a. out of Cost Base
• IR30m Technology Investment in 5 years

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Waterford Crystal Background Reconstruction
and Turnaround

• 1990 100m Investment by
  Sir Anthony OReilly led consortium.
• New Strategic Direction
• Unremitting Search for Competitiveness
• Strategy of Multiple Competing Sources
• Brand Investment
• Creative Marketing Strategies

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Waterford Crystal Background Drive for
Manufacturing Competitiveness

• From Production Led to Market Driven Company
• Platform Set for Business Growth

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The Growth.

• Pillar 1 Outsourcing
• U.S Market Research
• Lighter Feel, Contemporary Design, Cutting
• Marquis By Waterford
• Own Shelf Space
• Own Packaging, Design, Identity

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Project Unicorn

• Commenced 1992
• Set-up Cross-Functional Team.
• Visited 39 Manufacturers in 11 Countries on 3
  Continents.
• We had to get it - Right First Time!
• No Compromise on Quality
• We had to Move Quickly

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Project Unicorn

• Project Completed in 6 weeks from Start to Finish
• Marquis Introduced in September 1992
• 1st New Brand in Waterfords 200 Year History
• 1993 Outsourcing of Waterford Product
• In 2000 over 50 of Crystal Sales were Outsourced

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The Growth
Pillar 2 Brand Leverage
52.7
23.5
Waterford Market Share in the US (Premium Crystal)
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The Growth Brand LeverageStep-out Strategy
Luxury Gift Brand
Tabletop Brand
Crystal Brand
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The GrowthNew Businesses

• Waterford Linen
• Waterford China
• Waterford Flatware

• Waterford Writing Instruments
• Waterford Holiday Heirlooms
• Waterford Jewelry

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The Growth

• In 1991
• One Supplier in One Country
• Waterford, Ireland
• In 2001
• 72 suppliers in 22 Countries on
• 4 Continents

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Europe
Asia
France
Germany
England
Poland
C.Rep
China
Slovakia
Korea
Ireland
Hungary
Austria
Japan
Israel
Turkey
Italy
Portugal
Taiwan
America
Slovenia
Hong Kong
Thailand
Brazil
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The Growth

• Pillar 3 3rd Party Warehousing Distribution
• Our success in product outsourcing led us to
  embark on a new wave of initiatives for further
  outsourcing - 3rd party warehousing distribution

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Project Midas

• Commenced August 1998
• Cross-Functional Team
• Criteria For Success Agreed
• RFQ Process
• Contract with Banta Global Turnkey in QTR 1, 1999

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Quality Systems

• Mid 1990s
• Customer Care Group
• Processing Customer Trade complaints
• Upholding No Quibble Policy
• ISO 9001
• Kilbarry Plant 1994
• Dungarvan plant 1995
• ISO 14001
• Target to be achieved in 1998

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Quality Systems

• The Birth Of A Strategy
• 1997 Visit to U.S.
• Standard Methods for
• Processing complaints between U.S. and Ireland
• Processing Customer Issues Worldwide
• Feedback to Sales Marketing Teams
• Organisation Wide Communication

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Global Quality Systems Project

• Objectives
• Focus On Supplier Development
• Quality Organisational Structure
• Global Customer Care

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GLOBAL QUALITY PROCESSWaterford Division
Purchasing Quality Supplier Development
Customer Care Policy Systems Procedures
IRL
US / ROW
Quality (Systems, Proc.) Job Resp. Instructions
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Global Quality Systems Project

• Global Customer Care
• Scope Create a Global Customer Care solution
  through the implementation of a Quality
  Management System that was capable of supporting
• ISO 9001
• ISO 14001
• Corrective Action process
• Vendor Development
• Cross Functional Team

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Systems Selection Process

• Requirements Analysis
• Customer Service
• Quality Systems
• Agree Selection Criteria
• 15 Main Criteria
• Interviews / Demonstrations / Site Visits

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Q-SET

• Q-SET Groupware (Q-SYS)
• Harnassed Global Infrastructure from Lotus Notes
• The pedigree of Q-SET was very impressive
• Q-SET Groupware was a complete quality package
  (16 databases)
• Customer Care Module was comprehensive and
  included Product Code Capture

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The Implementation Process

• Installation at Waterford
• 5 days Pre-installation Planning
• Q-SET employee 3 days On-site for Installation
• Customer Care Module live in October 1997

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The Implementation Process

• Installation at New Jersey
• Software installed by replication from Irish
  site
• System configured by Q-SET in 1 day from
  Ireland
• Customer Care Module live in April 1998
• Training
• Average Training Period 5 Days

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Cost and Benefits

• COSTS
• Capital Cost IR45,000
• Management Resources

• SAVINGS / BENEFITS
• ISO 14001 Documentation
• Development of Customer Care Department
• H.R. Cost Saving of up to IR50,000

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Today Improvements

• Vendor Assessment System
• Vendor Rating System
• 44 Suppliers on Ship-to-Stock
• 15 Additional Suppliers Being Measured

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Today - Improvements

• ISO 9001
• Now A Paperless System
• ISO 14001 (achieved in October 1998)
• Paperless System

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Today - Improvements

• Global Customer Care System
• Integrated with U.S.
• Integrated with 3rd Party Warehouse
  Distribution Partner
• R.O.W. On Manual
• Customer Trade Complaints
• Corrective Action Process
• Chargeback System 51,427 for April / September
  2001
• Reporting Monthly Quality Review Meeting

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TODAY IMPROVEMENTS CORRECTIVE ACTIONS
REQUESTED
QualityAssurance
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TODAY IMPROVEMENTS CORRECTIVE ACTIONS ACTIONED
MaterialVendors
CrystalVendors
Packaging Engineering
QualityAssurance
Brand ExtensionVendors
Procurement
Waterford Manufacturing
DataManagement
Plant Engineering
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Today - Improvements

• Benefits
• On-line Link with Business Partners
• Clearer Picture of Customer Complaints
• One Channel for Dealing with Complaints
• Additional Q-SET Modules
• Calibration in the Plant Maintenance Dept.

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Waterford Crystal Vendor PerformanceSeptember 01
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IRL / US Crystal Complaints2000 vs 2001
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Quality Systems - Future

• Integration with New Product Development System
• Roll-out to Outsourced Suppliers Vendors
• Further Development with 3rd Party Distributors
• Support for Business Growth
• Compliance Management

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• Customer Care and Quality Systems
• One of the main pillars of Waterfords business

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Waterford Crystal

• Business Doubled
• Sales in 4 years
• Profits in 3 years

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Ref. IRISH INDEPENDENT NOV. 2000

• WATERFORD CRYSTAL No. 1 QUALITY BRAND IN THE
  U.S.

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