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XEROX
 In 1938, Xerographic machine was invented by chester
    carlson
   In 1944, Carlson refined his process named as
    ‘’électrophotography’’
   Haloid later obtained all rights to chester’s invention
    and put the trademark ‘XEROX’ IN 1948
   Haloid changed its name to Haloid Xerox Inc in
    1958, and to The Xerox Corporation in 1961
   Xerox was listed on the New York Stock Exchange in
    1961 and on the Chicago Stock Exchange in 1990
 The strong demand for Xerox's products led the
  company from strength to strength and revenues
  soared from $37 million in 1960 to $268 million in
  1965.
 In 1969, it set up a corporate R&D facility, the Palo Alto
  Research Center (PARC), to develop technology in-
  house
 As Xerox grew rapidly, a variety of controls and
  procedures were instituted and the number of
  management layers was increased during the 1970s
 The 'Leadership through Quality' program introduced
  by Kearns revitalized the company.
 The program encouraged Xerox to find ways to reduce
  their manufacturing costs.
 Xerox defined benchmarking as 'the process of
  measuring its products, Services, and practices against
  its toughest competitors, identifying the gaps and
  establishing goals.
 Planning


 Analysis


 Integration


 Action


 Maturity
 Adopted Functional benchmarking with the study of
  the warehousing and inventory management system of
  L.L. Bean (Bean)
 Bean had developed a computer program that made
  order filling very efficient
 It allowed stock pickers to travel the shortest possible
  distance in collecting goods at the warehouse
 The increased speed and accuracy of order filling
  achieved by Bean attracted Xerox
 American Express -for billing and collection
 Cummins Engines and Ford -for factory floor layout
 Florida Power and Light -for quality improvement
 Honda -for supplier development
 Toyota -for quality management
 Hewlett-Packard -for research and product
  development
 Saturn -a division of General Motors
 Fuji Xerox -for manufacturing operations
 DuPont -for manufacturing safety
 Japanese copier companies put together had only 1,000
  suppliers, while Xerox alone had 5,000

 Xerox reduced the number of vendors for the copier
  business from 5,000 to just 400.

 Xerox also created a vendor certification process .


 Vendors were consulted for ideas on better designs and
  improved customer service also
 Traditionally, technical representatives decided the
  level of spare parts inventory to be carried; little
  information was available on the actual usage pattern
  of the spare parts
 The stocking policy followed by Xerox branch
  managers was to hold fully finished, fully configured
  products near to the customer
 Company changed the above setup
 Working capital cycle time was cut by 70% leading to
  savings of about $200 million.
 Xerox introduced a Customer Satisfaction
 Measurement System

 The company sent out over 55,000 questionnaires
 monthly to its customers.

 It then benchmarked against those competitors that
 had scored high marks on specific measures of
 customer satisfaction
 Xerox formed a transition team consisting of 24 senior
  managers and consultants from McKinsey & Co
 The transition team took action at two levels
   - Firstly, it conveyed the message clearly to the world
  that Xerox was pursuing more widespread use of TQM.

  -It identified and addressed the obstacles that were
 likely to slow down the spread of TQM.
 The transition team also replaced the existing complex
  matrix by three Strategic Business Units (SBUs)
  - Enterprise Service Business
  - Office Copiers
  - Home Copiers
 In 1991, Xerox developed Business Excellence
  Certification (BEC) to integrate benchmarking with
  the company's overall strategies
 By the mid-1990s, benchmarking was extended to over
  240 key areas of product, service and business
  performance at Xerox
 Highly satisfied customers for its copier/duplicator and
  printing systems increased by 38% and 39% respectively
 Customer complaints to the president's office declined by
  more than 60%
 Overall customer satisfaction was rated at more than 90%
  in 1991
 Xerox went on to become the only company worldwide to
  win all the three prestigious quality awards
   - Deming Award (Japan) in 1980
   - Malcolm Baldridge National Quality Award in 1989
   - European Quality Award in 1992
 Xerox Corporation (NYSE: XRX) ranked as the
  worldwide market share leader in Managed Print
  Services (MPS) based on revenue.
 Xerox believes this data further validates its approach
  to provide services and solutions that deliver business
  value.
 North America alone , Xerox accounts for 56 percent of
  the MPS market.
Management | Principles of Management

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Management | Principles of Management

  • 2.  In 1938, Xerographic machine was invented by chester carlson  In 1944, Carlson refined his process named as ‘’électrophotography’’  Haloid later obtained all rights to chester’s invention and put the trademark ‘XEROX’ IN 1948  Haloid changed its name to Haloid Xerox Inc in 1958, and to The Xerox Corporation in 1961  Xerox was listed on the New York Stock Exchange in 1961 and on the Chicago Stock Exchange in 1990
  • 3.  The strong demand for Xerox's products led the company from strength to strength and revenues soared from $37 million in 1960 to $268 million in 1965.  In 1969, it set up a corporate R&D facility, the Palo Alto Research Center (PARC), to develop technology in- house  As Xerox grew rapidly, a variety of controls and procedures were instituted and the number of management layers was increased during the 1970s
  • 4.  The 'Leadership through Quality' program introduced by Kearns revitalized the company.  The program encouraged Xerox to find ways to reduce their manufacturing costs.  Xerox defined benchmarking as 'the process of measuring its products, Services, and practices against its toughest competitors, identifying the gaps and establishing goals.
  • 5.  Planning  Analysis  Integration  Action  Maturity
  • 6.  Adopted Functional benchmarking with the study of the warehousing and inventory management system of L.L. Bean (Bean)  Bean had developed a computer program that made order filling very efficient  It allowed stock pickers to travel the shortest possible distance in collecting goods at the warehouse  The increased speed and accuracy of order filling achieved by Bean attracted Xerox
  • 7.  American Express -for billing and collection  Cummins Engines and Ford -for factory floor layout  Florida Power and Light -for quality improvement  Honda -for supplier development  Toyota -for quality management  Hewlett-Packard -for research and product development  Saturn -a division of General Motors  Fuji Xerox -for manufacturing operations  DuPont -for manufacturing safety
  • 8.  Japanese copier companies put together had only 1,000 suppliers, while Xerox alone had 5,000  Xerox reduced the number of vendors for the copier business from 5,000 to just 400.  Xerox also created a vendor certification process .  Vendors were consulted for ideas on better designs and improved customer service also
  • 9.  Traditionally, technical representatives decided the level of spare parts inventory to be carried; little information was available on the actual usage pattern of the spare parts  The stocking policy followed by Xerox branch managers was to hold fully finished, fully configured products near to the customer  Company changed the above setup  Working capital cycle time was cut by 70% leading to savings of about $200 million.
  • 10.  Xerox introduced a Customer Satisfaction Measurement System  The company sent out over 55,000 questionnaires monthly to its customers.  It then benchmarked against those competitors that had scored high marks on specific measures of customer satisfaction
  • 11.  Xerox formed a transition team consisting of 24 senior managers and consultants from McKinsey & Co  The transition team took action at two levels - Firstly, it conveyed the message clearly to the world that Xerox was pursuing more widespread use of TQM. -It identified and addressed the obstacles that were likely to slow down the spread of TQM.
  • 12.  The transition team also replaced the existing complex matrix by three Strategic Business Units (SBUs) - Enterprise Service Business - Office Copiers - Home Copiers  In 1991, Xerox developed Business Excellence Certification (BEC) to integrate benchmarking with the company's overall strategies  By the mid-1990s, benchmarking was extended to over 240 key areas of product, service and business performance at Xerox
  • 13.  Highly satisfied customers for its copier/duplicator and printing systems increased by 38% and 39% respectively  Customer complaints to the president's office declined by more than 60%  Overall customer satisfaction was rated at more than 90% in 1991  Xerox went on to become the only company worldwide to win all the three prestigious quality awards - Deming Award (Japan) in 1980 - Malcolm Baldridge National Quality Award in 1989 - European Quality Award in 1992
  • 14.  Xerox Corporation (NYSE: XRX) ranked as the worldwide market share leader in Managed Print Services (MPS) based on revenue.  Xerox believes this data further validates its approach to provide services and solutions that deliver business value.  North America alone , Xerox accounts for 56 percent of the MPS market.