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National Workshop on “Enabling MSME to be Competitive through Quality Tools”
1
MSIL approach for supplier upgradationthrough cluster activity
- By Dr. K. Kumar
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What is Quality ?
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Kano Model
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WHAT IS QUALITY …...
PAST EXPERIENCEWORD OF MOUTHCOMMUNICATIONS PERSONAL NEEDS
EXPECTEDQUALITY
PERCEIVED QUALITY
DELIVEREDQUALITY
EXTERNALCOMMUNICATIONTO CUSTOMER
CUSTOMER
PROVIDER
GAP *
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Quality is meeting or exceeding customer’s perceived needs.
To some people Quality means that they have met whole range of internal specifications, rules and standards.
Any definition of Quality must include the customer, the voice of authority. The voice above all other voices must be the voice of customer.
WHAT IS QUALITY …...
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6
TOTAL QUALITY MANAGEMENT
TQM IS BOTH A PHILOSOPHY AND A SET
OF GUIDING PRINCIPLES THAT FORM THE
FOUNDATION FOR A
CHANGING &
CONTINUOUSLY IMPROVING
ORGANISATION
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
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ELEMENTS OF CUSTOMER SATISFACTION
PRODUCT DESIGN
CONFORMANCE
SERVICE
COST EFFECTIVE
PRICE EFFECTIVE
RIGHT PLACE
RIGHT TIME
RIGHT AMOUNT
IN USE
IN PRODUCTION
EVERYONE CARES
QUALITY
COST
DELIVERY
SAFETY
MORALE
WORLD CLASSQUALITY FORCORPORATESURVIVAL
FULLCUSTOMER
SATISFACTION/ DELIGHT
ASSU
RA
NC
E OF Q
UA
LITY
As a Good Customer
I will
As a Good ProcessOwner or User
I Will:
As a Good Supplier
I Will:
1) Agree on and document my requirements with my supplier
2) Return defective inputs to my supplier promptly and tactfully
3) Feed back input quality data to my supplier
1) Learn and apply the tools of quality and teach others.
2) Continuously improve my process-reduce defects, cycle time and know benchmarks
3) Document and display my process, defect levels, and CI projects
1) Understand my customer requirements and agree on and document my deliverables
2) Reduce defects and variations in my output
3) Measure my output quality from my customer’s perspective
My Customer
My Supplier
My input My output
RequirementAnd
feedback
RequirementAnd
feedback
I AmResponsible
for Quality
Living Our CI Values
9
Principles of Quality
10
Principle of total qualityPrinciple 1• Proactively and systematically understand current and
future customer needs (External and Internal)
• Customer complaints analysis is critical, it can only bedone after the complaint is resolved.
Proactively Companies must anticipate customer’s needs.
• Systematically it must be ensured that the processused to resolve the complaints is valid, objectiveand statistically reliable.
11
Proactively and systematically measure the customer’sperception of how well your organization and your directcompetitors satisfy these needs. Robert Galvin, former chairman and CEO of Motorolacited,
“Only by measuring something it can be truly known.” In order to be useful, customer satisfaction measurementsmust be both objective and reliable.To ensure objectivity, a number of companies use a thirdparty to assess customer satisfaction.Reliability means that for any situation the measurementprocess will yield the same, or nearly the same result.
Principle 2
12
Focus efforts on improving the processes or methods thatsatisfy customer needs. Better financial results such as costreduction and higher profits are the outcome of processimprovements. Total Quality approach would be to improve the process bystreamlining it, reducing errors, shortening process, cycle timeand eliminating activities that don’t affect CustomerSatisfaction. To improve quality, reduce process variation. Variation is present in all activities and processes. Althoughthey might be made or delivered according to the same design,there will be differences in parts, products and services. Inmany instances, variation is within an acceptable toleranceband.
Principle 3
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
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Variation
13
14
•Common causes of process variation areever present and vary randomly within somestatistical distribution. Process is stable whencommon causes are present.•Special causes of variation are those outsidethe common causes that are ever present. Thevariation is due to specific assignable causesthat are non random occurrences. Specialcauses are sporadic and not predictable.
Principle 4
Variation A stable process in control (Natural or common cause)
Upper process
limit
Mean
Lower
process
limit
Time
Cu
sto
me
r S
ati
sfa
cti
on
Upper process
limit
Mean
Lower
process
limit
Time
Cu
sto
me
r S
ati
sfa
cti
on
An unstable process out of control(Special Cause)
16
•Develop robust design for products and processes.
•Robust design are not sensitive to variations ofproduction processes, components, raw materials,and customer usage.
•The traditional engineering approach is to design atarget (target value, target function, target region)then reduce variation around the target.
•The new approach developed by Genichi Taguchi,is to design for robust function, then adjust thetarget.
Principle 5
17
L
L
Taguchi Loss Function
L = k (y – T)2
L = Cost Incurred as quality Deviates from the target
y = Performance Characteristic
T = Target
k = Quality Loss Function
y
y
Step function
LSL USL
A
0
T - T T+
Lo
ss (
$)
LSL USL
A
0
T - T T+
Lo
ss (
$)
Quadratic function
18
Principle 6
•Use the scientific method for solving problemsand improving processes.•This means that organizations must manage byfact and not by assertion. Dr. W. Edwards Deminghas said
“In God we trust, but from all others we demand data.”
•Managing by fact really means applying thescientific process, which is described very clearlyby the Plan-Do-Check-Act (PDCA) Cycle
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
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19
PDCA Cycle
Objective
Method
Education
Implementation
Checking
Corrective action
Product
Consumer
Data
Inside & Outside Company
Abroad
20
When there are problems, and expectations haven’t beenmet, look to the system. Don’t blame people.
Instead of finger pointing, management should focus onthe system. Instead of asking “Who did it?” or “Who didn’t doit.?” Management should ask “What is wrong with thesystem?”
Paradoxically the whole system is controlled bymanagement and not by people who work inside the system.
Emphasize prevention instead of detection. Inspection doesnot add value and it doesn’t improve quality. It only helps toensure that what goes to the customers is okay.
Principle 7
21
The ultimate way to ensure quality, however, is todesign processes so that regardless of variation ofprocess control parameters the output is optimal or nearlyoptimal. Such processes are said to be robust designs. Arelated concept is the principle of Fool Proofing, orpoka - yoke in Japanese.
Put Quality ahead of quantity.
It means:- Consistent Quality standards
Principle 8
22
Never pass on known or suspected bad quality to
the next person in the process.
Follow 3-NAI activity
Do not receive
Do not make
Do not send defects to the next process
Cont.
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Biggest Challenge •How to Maintain the Market Share & How many varieties of products are introduced in the Market every Year?
•To improve the Quality of the Products in terms of Quality, Cost & Delivery.
For improving Quality what should we do?
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QC 7 Step Solving approach
QC 7 steps Procedure is the basic procedure for solving
problems scientifically, rationally & effectively.
It is the fundamental Problem solving strategy which
allows to solve the problems rationally & scientifically.
If we want to achieve EFFECTIVE improvement we have
to know the rules of the game i.e. QC 7 Steps
Procedure.
The secret of our problem solving is to know the
Procedure & act in accordance with it.
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
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QC 7 Step Formulae
The conventional method is based on trial & error.
•Grasp Problem•Set Target•Identify gapbetween existingsituation & Target
•Investigate Causes
•PlanCountermeasures•ImplementCountermeasure•Institutionalize
Expose Problem
Experience, Intuition, nerve, Inspiration
Implement Counter-Measure
Expose Problem
Analyze Causes
Implement Counter-Measure
Figure‐1a. b.
Conventional Problem Solving approach
QC Problem Solving approach
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Problem arises
Identify its Causes
Act against the Causes
Symptom Disappears
Problem Solved
In case of QC Problem Solving approach, the problem really has been Solved; thisis true Problem Solving
Figure‐2 QC Problem Solving approach
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QC 7 Step Problem Solving Formula
Table‐1
Step No.
Basic Steps Action Item
1 Select Topic •Identify Problem•Decide Topic
2 Understand the situation & Select Target.
Understanding Situation•Collect Data•Decide characteristic to attack•Decide Target
3 Plan Activities. •Decide what to do•Decide Schedule, division of responsibility etc.
4 Analyze Causes •Check present values of Characteristic•List Possible Causes•Analyze Causes•Decide items to tackle.
Cont…
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Table‐1 Cont.
Step No.
Basic Steps Action Item
5 Consider & Implement Countermeasures
Consider Countermeasures•Propose the ideas for Countermeasures•Discuss how put Countermeasures into effect.•Check details of the CountermeasuresImplement Countermeasures•Plan how to implement Counter Measures•Implement Countermeasures
6 Check Results •Check results of Countermeasures•Compare results with Target•Identify Tangible & Intangible benefits
7 Standardize & Establish Control
Standardize•Establish new standards & revise old ones.•Decide methods of controlEstablish Control•Familiarize relevant people with the methods.•Educate those responsible.•Verify that benefits are being maintained.
QC 7 Step Problem Solving Formula
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Procedure for Problem Solving
In the QC Seven Step Procedure the following points are
important:
1. Understand the situation & set targets: This would mean analyzing data on the existing & past situation & then decide the target. Fig. 3 shows the procedure to calculate the targets
Baseline 117642
Entitlement 86013
Difference 31629
70% of Diff. 22140
Target @70% of Entitlement
95502
Figure‐3
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2. Analysis of the causes : Late Dr. Kaoru Ishikawa,
the father of Japanese Quality Control, wanted it to
be renamed as “analyze the process”. But ultimately
in JUSE 7 step procedure analyze the causes was
retained & is widely used.
3. Countermeasures: After the analysis of the Causes,
the team proceeds to take the countermeasures to
prevent the occurrence of the defects.
Procedure for Problem Solving
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
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4. Standardize & Establish the Control : In the Past
this step was known as “Apply the Brakes” i.e.
prevent any back sliding & establish the permanent
Countermeasure. Failing to check the effect of
Countermeasure is like omitting the touch up after
Painting. This would need establishing the new
standards or revising the old standards. Familiarize
people with the new standards & verify that the
benefits are being maintained.
Procedure for Problem Solving
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5. Target Control: While fixing the targets & the timelimits for the achievements following key points areimportant.
What control Characteristic are to be taken up forstudy.
By When the study will be completed.
By How much such as reduce the defect at theQuality gate by 30%.
Figure‐4
Procedure for Problem Solving
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TOOLS & TECHNIQUES
USED FOR PROBLEM SOLVING
AT
MACE
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Basic 7 QC Tools
Checksheet Run Chart Pareto Chart
Control Chart
Fishbone Diagram Scatter Plot
Histogram
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Originally developed by Sakichi Toyoda.
Later used within Toyota Motor
Corporation during the evolution of their
manufacturing methodologies.
The architect of the Toyota Production
System, Taiichi Ohno, described the 5
whys method as "the basis of Toyota's
scientific approach by repeating why five
times, the nature of the problem as well as
its solution becomes clear
Taiichi Ohno
Why-Why Analysis
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36
This method ofproblem solvingsimply involvesasking “Why” anumber of times(typically five timesis enough) until theroot cause of aproblem isdetermined .
Problem Solving: 5 Whys
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Why -Why Analysis at Toyota
Why there is a puddle of oil on the Shop Floor?
• Because Machine is Leaking Oil
Why the Machine is Leaking oil?
• Because Gasket has deteriorated
Why Gasket has deteriorated?
• Because we bought the Gasket made of inferior Material.
Why did we buy a Gasket of Inferior Material?
Because we got a Fair deal on those Gaskets
Why we purchased the Material at Fair Price when the Quality of the Gasket was not Good ?
a) Because the Purchasing agent gets evaluated on short term Cost Savings
Why 1?
Why 2?
Why 3?
Why 4?
Why 5?
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Shainin Techniques for Problem Solving
Dorian Shainin (September 26, 1914 –January 7, 2000) was an influential American quality consultant, aeronautics engineer, author
Known for his contributions in the fields of industrial problem solving, product reliability, and quality engineering, particularly the creation and development of the “Red X” concept
Dorian Shainin
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Shainin Techniques for Problem Solving
Disassembly/Assembly
X-BOB X-WOW
Initial 113 86
Ist 115 84
IInd 111 85
Median 113 85
Range 4 2
D( Diff of Medians = ( 113 -85 ) = 28
d ( Avg. of Ranges )
= ( 4+2 )/2 = 3
Component Search
S.No. Surface Finish Status Of the Pump
1 65 Bad
2 64 Bad
3 61 Bad
4 58 Bad
5 51 Bad
6 48 Bad
7 47 Bad
8 45 Bad
9 32 Good
10 32 Good
11 28 Good
12 24 Good
13 22 Good
14 22 Good
15 21 Good
16 19 Good
Paired Comparison
-50
-40
-30
-20
-10
0
10
20
Tem
p
Sequence
Component Search
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Shainin Techniques for Problem Solving
Process Parameter Snorkel Position
Parameter Range 0to 1/2"
Bag no.
1 1/2 B
2 1/2 B
3 1/2 B
4 1/2 B
5 1/2 B6 1/4 B7 1/4 B
8 1/4 B
9 0 G10 0 G
11 0 G
12 0 G
13 0 G
14 0 G
15 0 G
16 0 GEnd Counts 8+ 8 = 16
Product Process Search B Vs C
B
225
223
219
C
217
212
210
Modified Component Search
Disassembly/Assembly
X-BOB X-WOW
Initial 113 86
Ist 115 84
IInd 111 85
Median 113 85
Range 4 2
D( Diff of Medians = ( 113 -85 ) = 28
d ( Avg. of Ranges )
= ( 4+2 )/2 = 3
-50
-40
-30
-20
-10
0
10
20
Tem
p
Sequence
Component Search
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S.NO. ITEM TARGET1 Safety : Zero Accidents2 5 S – Score 90% min.3 Quality : 3.4 ppm4 Supply to Customer 2 hourly basis5 Customer Line Stops Zero6 Inventory Turns: Min 507 Change over time < 10 min.8 OEE (Overall Equipment Efficiency) 85 - 90 %9 VA to Employee cost 510 VSM : Value stream mapping 25%11 Cost 50% less12 Absenteeism (Unauthorized) 0%13 Direct to Indirect manpower 60 : 4014 Kaizens / employee 24/emp/year
15New Product Development
At 50% less time and Cost
16 Training Hours / Emp / Year > 5 % of working hrs
Attributes for World Class
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CLUSTER APPROACH
AT
MACE
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
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MODEL
F R
WORLD CLASS•TEI through SSQC activities.•Single Piece Flow using Model Line; identifying Lean Manufacturing Projects (MPS) based on Customer Requirements.•Inventory Turns Ratio Management•Energy Consumption Management•Cost of Poor Quality•Initial Supply Control•Value added per employee cost (VAPCO)•Training on SSQC, MPS, EMS, QMS, NPD.
PHASE 2
•Complete 5-S•Up-gradation through advance Quality Tools •Hoshin-Kanri (MFO).•Autonomous Maintenance; OEE•Yield Improvement•Implementation of 8 Pillars Check sheet•Training on advance tools like DOE, DMAIC & OEE
Phase 3
•Capturing Customer Voice•1-S,2-S and Visualization•Customer Concern (QCD) through why-why Analysis.•Red Bin Analysis using basic QC Tools•Daily Work Management for Target Monitoring.•Monthly Performance Review at Gemba & Collaborative Learning•5 New Kaizen/month/vendor.•Training on 5S, VUD, 7 QC tools, CAPA
PHASE 1
•TPM Cluster•Certified Quality Engineer•Six Sigma Black Belts.•Benchmarking Visits.•Horizontal Deployment of Cluster Activity through Tier-2.
Phase 4
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Concept of Cluster
A group of 5 to 10 vendors ( non-competing) get together to undergo a common training session and get hand held experience.
Individual attention is given to all cluster members & all queries during the session are answered.
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Advantages of Cluster
Lower Cost.
Group discussions & sharing of ideas.
Competitiveness.
Learning from one another.
Exposure to best practices.
Learning in a team.
Exposure to benchmarking.
Improved motivation.
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CLUSTER MEETING IN PROGRESS
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EXACTNESS
The first step in the improvement journey is Exactness. Thisinvolves three parameters:
Exactness of Process: The vendor must ensure that theprocess is being followed exactly as per the standards, asper written down instructions. To achieve this the vendormust employ check points in Daily Work management.
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Exactness of Measurement:
Any process is as good as its measurement. The vendormust ensure that there is a control plan for all theinstruments & measuring gauges; periodic calibrationsare carried out as per the plan & all instruments /gaugesare kept in good working condition.
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EXACTNESS
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Direct CauseCauseCause
CauseCause
Root Cause
1. Initial Problem Perception(Large , Vague, Complicated Problem)
2. Clarify the Problem
3. The “ Real “ Problem
4. POC
5. Countermeasure
6. Evaluate7. Standardize
5 Why ?-Investigation
Of Root Cause
Why ?
Grasp the Situation
Why ?
Why ?
Why ?
Why ?
Basic Cause and EffectInvestigation
Funnel Approach
Practical Problem Solving Process
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TEAM ORIENTED PROBLEM SOLVING [ TOPS ]
We encourage Tier – 2 vendors in Quality Circle & Lean Manufacturing activities .
Every Year a competition amongst the Tier – 2 vendors is held at MSIL where each vendors make a presentation about the QC & Lean Manufacturing activities [ MPS ].
In order to motivate the vendors, awards are given through MSIL, the parent organization .
We also encourage our Tier – 2 vendors to participate in National Competitions to understand the best practices.
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TEAM ORIENTED PROBLEM SOLVING [ TOPS ] Quality Circle Competition in progress
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TEAM ORIENTED PROBLEM SOLVING [ TOPS ] Kaizen Competition at CII – Confederation of Indian
Industries
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Result of Cluster approach initiated by MACE
Measure 2004 - 05 2010 - 11 2011 – 12 Improvement
Rejection ppm
10933 2695 1617
No. of defects per month
432 263 159
85 %
63 %
Total no. of Tier 2 clusters : 19Total no. of Tier 2 vendors covered : 150
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MPS for Tier-2 vendors Implementation status
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QC Activity for Tier-2 vendors
QC Projects completed in 2011-12 till Oct’11
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MACE conducted Kaizen Meet for MSIL Vendors. Total of 200 Tier-1 & 400 Tier-2 vendors participated in this competition.The results were as follow:Tier-1
AWARD VENDOR NAME CLUSTER COUNSELLOR
Winner M/s Premier Pin Minda Cluster Mr. Amit Chauhan
1st Runner Up M/s Bhamra Fabricators Subros Cluster
Mr. O.P.Uttareja
2nd Runner Up M/s Lakhani Sona Cluster Mr. R.P.Bhatti
AWARD VENDOR NAME COUNSELLOR
Winner M/s KML Seat-1 Mr. Prateek Mandal
1st Runner Up M/s Bright Autoplast Mr. Himnashu Sharma
2nd Runner Up M/s Tenneco Mr. Sagar Vashisht
Tier-2
MACE Kaizen Meet
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M/S Bhambra Fabricator receiving the Best Kaizen Award in T-2 Category
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As a part of Quality month celebration,Tier-2 Quality circle competition was
organized at MACE on 26th Nov’11.
Each of the cluster member held the competition at their end to select the best QC
Circle at their end for Competition in MACE.
A Total of 12 Quality Circles from 12 Tier-2 Clusters participated in this
competition.
The results of competition were as follow:
Winner : Superfine : Lumax Cluster
1st runner up : Aar Aar Industries : Pricol Cluster
2nd runner up : NRB Bearing : Subros Cluster
MACE Quality Circle Convention
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Lumax T-2- Superfine receiving the winner Award of Quality Circle Competition
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M/S Precision Pin, Tier-2 of Minda receiving the Zero ppm Certificate
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
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M/S Subros receiving the Trophy for Best VSA Score in 2011-12
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CII conducts annual Cluster summit in month of September in which various
clusters working with CII, ACMA & MACE are invited to participate by giving
their Kaizens & Case Studies on Problem Solving using 7 QC tools, Why-Why
analysis & Six Sigma.
In year 2011-12, 47 vendors of MSIL participated in this event where the best
Kaizen & the Case studies were adjudged by the Jury consisting of eminent
people from the industry.
A total of 285 Kaizens & 120 Case studies were received by CII for evaluation.
We are happy to inform that the following awards out of the total awards were
bagged by MSIL’s Tier-1 & 2 vendors:
Stream Name of CompanyMSME Award Large Award
Manufacturing Excellence
Auto Décor Pvt. Ltd. 1st Godrej & Boyce Mfg. Co. Ltd. Mohali
1st
Horizon Industrial Products Pvt. Ltd.
2nd Minda Industries Limited 2nd
Shivai Enterprises Pvt. Ltd. 3rd Sona Koyo Stering Systems Ltd.
3rd
Cost Competitiveness
Bhambra Fabricators 1st Godrej & Boyce Mfg. Co. Ltd. Shirwal
1st
Mahindra & Mahindra 1st
Energy Efficiency USV Ltd. 1st Godrej & Boyce Mfg. Co. Ltd. Shirwal
1st
Promed Export Pvt. Ltd. 2nd Mahindra & Mahindra 2nd
Tata Motors Ltd. 3rd
Total Employee Involvement
Eastman Cast & Forge Ltd. 1st Godrej & Boyce Mfg. Co. Ltd. Mohali
1st
Rakheja Engineers Pvt. Ltd. 2nd
Vox Populi Godrej & Boyce. Mohali for Manufacturing Excellence
Award Company1st Award Suman Auto Parts Ltd.2nd Award Raunaq Automotive Components Ltd.3rd Award Krishna Maruti Limited
CII Cluster Championship Award Winners
CII Kaizen Award Winners
MSIL Vendors. The Case studies were based on completed MPS Projects.
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