Deming Prize Winners

www.ibef.
org
IBEF
INDIA BRAND EQUITY FOUNDATION
This is a first in the series of publication on the Deming Prize Winners from India, being presented by the IBEF in collaboration with the TQM division of the Confederation of Indian Industry. Between 2000-2003, nine Indian companies won the coveted Deming Prize a byword in excellence and quality. Only two companies outside Japan were conferred the highest Deming Award: Japan Quality Medal. SundaramClayton, Brakes Division, was one of them. During the same period, seventeen companies successfully challenged the Deming Application Prize; of these, six were Indian companies. Only two companies were given the Deming Quality Control Award for Operations Business Unit; both Indian companies, viz, Birla Cellulosic and Hi-Tech Carbon. We therefore consider it worthy to bring the stories of the journeys covered by the Indian companies in their pursuit of the Deming Prize. These case studies effectively capture the milestones benchmarked by Indian industry in their evolution towards achieving excellence, inspiring many more companies both in India and abroad, to emulate them and collaborate with them as business partners.
Contents
The Criteria Japan Quality Medal
Sudaram-Clayton Limited, Brakes Division 2 1
Deming Application Prize

Brakes India Limited, Foundry Division Mahindra and Mahindra Limited, Farm Equipment Sector Rane Brake Linings Limited Sona Koyo Steering Systems Limited Sundaram Brake Linings Limited TVS Motor Company Limited 10 16 24 30 36 44
Deming Quality Control Awards for Operations Business Units

Birla Cellulosic Hi-Tech Carbon GMPD 52 58 66
Contact for Information
Deming Prize-The Criteria

A brief adapted from the official website of JUSE
Broadly, the following considerations are taken into account for the Deming Application Prize: The emphasis of examination is on the implementation of TQM The actual implementation of TQM practices is appreciated Usage of advanced statistical methods is not the basis for success; appreciation and implementation of statistical methodology are more important Similar patterns of evaluation are adopted for both manufacturing and non-manufacturing companies Examination viewpoint criteria are not a check-list for assessment. These provide an overall picture of TQM. Examiners judge features that have been applied by the company. The Examination Viewpoint includes: Top Management Leadership, Vision, Strategies TQM Frameworks Quality Assurance Systems Management Systems for Business Elements Human Resource Development Effective Utilisation of Information TQM Concepts and Values Scientific Methods Organisational Powers (Core Technology, Speed, Vitality) Contribution to Realisation of Corporate Objectives Successful companies should score 70 points or higher in the Executive Session 70 points or higher as the company average, excluding the Executive Session 50 points or higher for any examined unit of the company
SUNDARAM-CLAYTON LIMITED BRAKES DIVISION
About the company
TVS group
Sundaram-Clayton Limited is a member of the TVS group, one of the largest automotive components manufacturing groups in India, with total sales revenue of more than US$ 2.5 billion.The group has been able to achieve this pre-eminence through its commitment to the cherished values of promoting trust, value and customer service.
The company
Sundaram-Clayton Limited has two divisions, namely, Brakes division and Die casting division. What follows, pertains to the practice of TQM at the Brakes division. SCL-Brakes division commenced its operations in 1962 at Chennai in southern India, in collaboration with Clayton Dewandre Holdings Limited, UK (now part of WABCO Automotive group). SCL-Brakes division is the pioneer in the manufacture of air and air-assisted braking actuation system products. A market leader since inception, SCLBrakes division develops and manufactures products for a wide range of commercial and off-highway vehicles. The factory is situated at Padi, 11 km from Chennai. The range of products manufactured by SCL-Brakes division (SCL) comprises: Air brake actuation system used for medium and heavy commercial vehicles: - Compressors for generation of air - Air dryers and reservoirs for processing and storage of air - Valves for control and regulation of the system - Actuators for actuating the brakes - Electronic control system for air brakes (Anti-lock braking system - ABS and Anti-spin regulation - ASR) Vacuum brake products for light commercial vehicles
Awards
SCL won the Deming Application Prize in 1998, becoming the first in India and only the fourth company outside Japan to claim this honour.
Indias Deming Prize Winners
SCL won the Japan Quality Medal for the year 2002, the first in India and the second company outside Japan to win this honour. The Japan Quality Medal is an annual award presented to a company or a division of a company that has received the Deming Application Prize three or more years ago (including the award year), that has continuously applied TQM to priority issues and has been achieving its objectives steadily and effectively in a changing business environment.
The other awards won by SCL in its continuous improvement journey include: Automotive Component Manufacturers Award (ACMA, India) - ACMA Technology award in 2002 - ACMA Manufacturing excellence award in 2003 Tamil Nadu State Government Award for good industrial relations for both management and the employees union (won 8 annual awards since inception of the award in 1988)
Success factors leading to recognition
TQM at Sundaram-Clayton
SCL started its TQM journey under very difficult and strained circumstances in the late eighties. The business of commercial vehicles manufacture was stagnant and as a supplier of air braking systems, the company was solely dependent on the fortunes of that industry. Both sales and profits had seen sharp declines. A series of steps, beginning with diagnosis, leading to a resolution of the strategic directions, and followed by sustained communication and education were undertaken in three phases: Introduction phase (1987 to 1990) Promotion phase (1990 to 1994) Deployment phase (1994 to 1998)
Introduction phase (1987 to 1990)

The change process was started with the aim of getting a buy-in from the employees. As a first step, change seminars were conducted for all employees, stressing the need for change. The visible barriers were broken with a common uniform and canteen for all employees, no cabins for managers and open offices to enable easy accessibility of employees to the heads of the departments. This contributed to a change in the mindset of employees, which began viewing the management as part of the same team.
Another major initiative related to the restructuring of the manufacturing system. Process layout was changed to product based layouts. Manufacturing units (factories within factory) were formed, based on product groups. Workmen were trained to become multi-skilled, whereby they worked on many machines. The production managers were empowered and held accountable for quality, cost and delivery.
Promotion phase (1990 to 1994)

Policy management process, which commenced at SCL in 1990-91, helped create a company-wide goal congruence. The annual targets of the company were deployed to various departments and individuals. Guidelines were provided, towards achieving company objectives, highlighting broad strategies that needed to be followed by all. Each department aligned its objectives and action plans towards achieving the company objectives. As a part of TQM implementation, the company-wide quality assurance system was executed. The culture of quality by inspection was gradually changed to quality control and quality assurance (QA). Focus was placed on ownership of quality by the manufacturing units, supplier quality improvements and the genba audit concept.
Deployment phase (1994 to 1998)

During this phase, daily work management, viz, defining and monitoring key processes, ensuring that they met set targets, detecting abnormalities and preventing their recurrence, were strengthened. Continuous improvement in all aspects of work, using total employee involvement, became the norm.
Continuous improvement
The process of challenging the Deming Application Prize in 1998 helped fine tune many processes and provided an opportunity to review the TQM journey. The diagnosis of Deming examiners fuelled the drive for improvement. To meet the ultimate objectives of customer satisfaction and business improvement, SCL identified the priority issues and initiated new TQM activities. The priority issues were identified based on the Deming examiners' feedback for further improving the TQM practices, changes in external and internal environment, and the core value system of the company. The priority issues were addressed through policy deployment, continuous improvement and new TQM activities.
New TQM practices at SCL were selected to create synergy, so that all priority issues were addressed together without creating conflicts. SCL played an important role in spreading the TQM culture in India, sharing TQM practices and benefits with customers, helping suppliers promote TQM activities in their companies and sharing TQM practices with Chief Executive Officers from organisations affiliated to the Confederation of Indian Industry (CII) and ACMA. It was also noteworthy that the process of challenging the Japan Quality Medal helped the new entrants to the company understand the TQM practices and take part in the TQM movement with pride. Through these aforestated activities, SCL ensured that the spirit of TQM was maintained and benefits reaped, to achieve customer satisfaction and business improvement in a fast changing business environment.
Leadership and employee participation

Leadership (Managing Director/President) plays a significant role in finalising the vision, mission and quality policy. The leadership reviews the gap analysis in the annual performance . Leadership reviews and approves annual targets and policy objectives. Departmental heads, the President and the Managing Director of the company, conduct monthly performance reviews and audits. All employees participate in TQM activities. The workmen participate in improvement through Quality Control Circles (QCCs) and Suggestion Schemes. Executives and Managers participate in improvement through Supervisory Improvement Teams (SIT) and Cross Functional Teams (CFT). The best QCC and CFT/SIT also participate in various domestic and international competitions.
Strength as an organisation to attract overseas attention

Competency to develop electronic control systems Focused planning of technology development across the entire product range Ability to deliver total braking system solution (including conventional and electronic control system) to the customers Shorter product development lead-time by leveraging Information Technology (IT) tools Lean manufacturing system and shorter lead-time for delivery Just-in-time manufacturing and supplies Culture of continuous improvement
Technological edge
SCL implemented the cross-functional teams approach for product development. A new NPD process was documented, using concepts of Quality Function Deployment (QFD), benchmarking and structured design reviews. These actions led to accumulation of design expertise and a mechanism for using the expertise to prevent errors. This enhanced customer satisfaction and increased sales from new products. As a part of their long-range plan, technology and product development plans were formulated. Foreseeing the infrastructure developments in India, launch of new technology vehicles and towards improving end customers' safety, it was decided to proactively develop anti-lock braking system (ABS) and anti-spin regulation (ASR) for commercial vehicles. Acquiring the competence in design of electronics and software, SCL successfully developed the ABS and ASR and commercially launched them in 2002. Both are considered to be at par with international benchmarks in performance. To test the performance and reliability of the braking system products, SCL commissioned a state-of-the-art test track near Chennai.
Business excellence model
SCL believes in the principles of Total Quality Management (TQM).
SCL's understanding of TQM

TQM is a company-wide effort aimed at continuous quality improvement of all processes, products and services through total employee involvement, that results in increasing customer satisfaction, loyalty and improved business results.
Five pillars of TQM
With TQM as the base, SCL is integrating various management techniques such as TPM, Lean Manufacturing, QS 9000, etc.
The Deming Prize recognition
Specific comments from the auditors during evaluation and specific points mentioned during the investiture ceremony
The following comments were made by the examiners after the Deming Prize examination in 1998: Key achievements: Superior results in the areas of product quality, delivery time, safety and human resources development Top management's leadership in promoting TQM activities Total employee involvement Environmentally and socially responsible Policy and daily management Adopting Japanese TQM to TVS culture: TVS TQM Areas for Improvement: Enhance business domain Improve quality and productivity to match world class standards
New TQM initiatives were implemented for the priority areas identified, based on Deming examiners' feedback and the analysis of the environment (external/internal). The following comments were made by the examiners after the Japan Quality Medal examination in 2002: The following activities are being realised based on powerful leadership of management: With trust, value and service as the basic philosophy, a relationship of trust with employees, customers and suppliers has been built With TQM as the core, TPM, JIT, QS-9000, and Lean Production System have been inducted and a synergy effect is being produced Considerable attention is being paid not only to education and training of employees for self-fulfillment and improvement in welfare of employees and their families, but also by way of contribution to the local society SCL has carried out technical development of products such as ABS and ASR, that are based on electronic control system. Based on product development by taking into consideration the usage conditions unique to India, investment in setting up a Proving Ground and reliable quality test of products, SCL has established firm position for itself in India as a brake manufacturer. Quality diagnosis, education and guidance for suppliers are being carried out in a planned manner and satisfactory results are being achieved in terms of quality improvement and cost reduction.
Contribution to further growth/business and international recognition
The effects of implementing TQM were felt clearly, covering a wide range of measures such as share of business, profit and sales index, sales per employee and addition per employee. Intangible benefits were recorded in the areas of customer satisfaction, supplier satisfaction, new product development processes, employee and family fulfillment, industrial relations, satisfied local society and in organisational culture that resulted in high ownership among employees for improving the organisational performance.
Future plans
The company has identified the following key strategies as the way forward: Launch new products Access world markets by leveraging partnership Improve the product quality (defects < 50ppm) Improve safety and work place standards (OHSAS 18001) At the heart of the implementation of these strategies in SCL-Brakes division is the active pursuit of customer satisfaction through TQM methodology.
BRAKES INDIA LIMITED FOUNDRY DIVISION

About the company
Brakes India Limited-Foundry Division (BIF) is part of the TVS group. The TVS group, comprising 29 companies and employing 27000 people, is spread over 45 locations. Its yearly sales stood at US$ 1.7 billion in 2003. Brakes India Limited-Foundry Division (BIF) was established in the year 1981 at Sholinghur in the state of Tamil Nadu in southern India. BIF produces 50,000 MTPA of ductile iron castings from DISAMATIC moulding lines and permanent mould castings catering to the automotive, refrigeration and air conditioning industries. Its sales turnover approximates US$ 50 million. About 50 per cent of the output is exported to Germany, UK, France, Sweden, Japan, USA and South Africa.
Awards
Brakes India Limited-Foundry Division (BIF) was the first foundry in India to get the QMS accredited to ISO 9002 standards in 1992. In 2001, BIF realigned its QMS to QS 9000 standards. In 2003, Brakes India Limited-Foundry Division (BIF) received the prestigious Deming Application Prize for implementing concepts and practices of TQM across the company to achieve business excellence. In the same year, Brakes India Limited-Foundry Division (BIF) won the award for TPM Excellence -1st category for achieving remarkable results in P, Q, C, D, S & M. The EMS in Brakes India Limited-Foundry Division (BIF) was accredited to ISO 14001 standards in the same year. In 2004, Brakes India Limited-Foundry Division (BIF) realigned its QMS to ISO / TS 16949:2002.
T otal Quality Management System

Brakes India Limited-Foundry Division (BIF) adopted the TQM approach through the cluster approach with Quality Guru and evangelist, Prof Y Tsuda of JUSE, driving the learning. They conducted regular tours of the shop-floors of all the member companies, to get a first-hand exposure to problems, which were followed by collective brainstorming to solve problems. Systematic sharing of results and transfer of the same, helped in the pooling together of knowledge. Brakes India Limited-Foundry Division (BIF) adopted a top down approach in implementing TQM methodology. Performance measurement in terms of Q, C, D, S & M was given a thrust and all employees were involved in the process.
Brakes India Limited-Foundry Division (BIF) focused on the quality of the product, new product development to suit customer needs, efficiency in manufacturing, planning and managing the business. TQM implementation in Brakes India Limited-Foundry Division (BIF) started with implementing complete 5S in the factory. Daily work management using PDCA cycle was introduced as the next step. "Managing Points and Checking Points" were introduced thereafter to improve functional management, which ensured increased ownership as well as accountability. Business planning was refined through Policy deployment, the cornerstone of TQM. Deep analysis in the areas of material technology and optimisation of process parameters, energy conservation, reducing chronic defects and improving OEE were the distinguishing features of its TQM implementation. Utilisation of Computer-Aided Technology for new product development and quality upgradation was the hallmark. Additionally, the Human Resource Management was re-invigorated through periodic Employee Surveys and Competency Mapping followed by continuous education and training of employees. TQM gave Brakes India Limited-Foundry Division (BIF) an opportunity to excel in Environmental Management, which was given a big thrust. TQM also helped BIF realise its responsibility as a Corporate Citizen to make its contribution to wider society. The effects of TQM continue to be visible in managing robust processes, improved product development and innovation in technology.
Leadership and employee participation Leadership

The top management led the TQM evolution in Brakes India Limited-Foundry Division (BIF). BIF had a magnetic vision encompassing all the stakeholders. The top management conducted periodic reviews to ensure that the vision cascaded down the line through long-term and medium-term objectives and strategies, in order to align all the activities under the TQM umbrella. The top management also involved itself in understanding customer needs, measuring customer satisfaction, increasing quality consciousness, analysing business results and initiating action for continuous improvement.
11
Employee Participation
In Brakes India Limited-Foundry Division (BIF), total employee involvement was ensured through: Quality circle Continuous improvement teams Suggestions Cross functional teams Special action groups The best suggestions and best continuous improvement teams were recognised and rewarded with special payments. A rolling trophy was instituted for the "Best Suggestion". Brakes India Limited-Foundry Division (BIF) employees have won the "National Cast Quiz" trophy for the last seven years.
Regular improvements in business processes

Improving the business results by practising TQM was institutionalised. These included: Customer returns were reduced to one-third. These reduced concerns of high intensity to zero and the number of concerns to one-sixth of the original frequency. Brakes India Limited-Foundry Division (BIF)s focus on NPD and application of CAD/CAM technology helped it to reduce lead times to almost 25 per cent of the original. Brakes India Limited-Foundry Division (BIF) benchmarked itself against the best practices, which revealed that while they were at par with the best with respect to external failures, product life cycle management, process control, productivity and surface utilisation, they needed to improve in the areas
of energy efficiency and output to input ratio. The company's vision was to improve the quality of work life of their employees in an atmosphere of trust and care and to work well as a cohesive team always encouraging higher standards of performance. No man-days have been lost due to strikes since the inception of the Foundry twenty-two years ago.

Brakes India Limited-Foundry Division (BIF) consistently made special efforts to understand all customer requirements and continuously upgraded manufacturing technology and business processes to meet customer expectations. Brakes India Limited-Foundry Division (BIF) s strengths: TQM approach for business excellence TPM approach for operational excellence Quality Management System accredited to TS 16949:9002 standards and Environment Management System accredited to ISO 14001 standards. Just-in-time (JIT) deliveries from conveniently located warehouses in Europe, USA and Japan. Customer services managers in Europe, USA and Japan combine well with adequate sea and air links between the Foundry and the European, US and Japanese markets to ensure timely deliverables.
13
Technological edge
The guiding principle of Brakes India Limited-Foundry Division (BIF) was to be at the forefront of casting technology. BIF kept track of technological changes and upgraded its existing facilities to the best in class. The following features ensure Brakes India Limited-Foundry Divisions technological edge: State-of-the art equipment and machinery Full-fledged in-house pattern & die shop with CAD, CAM and CAE facilities (including mould filling and solidification simulation) Full-fledged ER&D support including test facilities Utilising the emerging Information Technology tools for decision making and technology development Capability to supply machined and fully finished castings Collaborative efforts with customers during new product development
Brakes India Limited-Foundry Divisions theme for business excellence focused on achieving total customer satisfaction by adopting the following model:
CUSTOMER SATISFACTION
BUSINESS EXCELLENCETECHNOLOGICAL LEADERSHIP
KEY BUSINESS ENABLERS
Quality System Management
Business Planning
HR Management
Cost Management
Delivery Management
Safety Health & Environment System Management
Technology Management
Customer Satisfaction
SPC / DOE Poka Yoke FMEA Root Cause Analysis Deep Analysis Standardisation
Vision Long & Medium Term Plan Benchmarking Policy Deployment Managing Points & Checking Points Daily Work Management
Values Empowerment Team Working Education & Training Employee Satisfaction
5S & 3 MU Energy Conservation

Output to Input Ratio
Change overtime Reduction J.I.T Material Flow Control O.E.E.
ISO 18001 Implementation Ergonomics Green Belt Development Conservation of Non Renewable Resources
Knowledge Database Deep Analysis Benchmarking Education & Training Automation and modernization
Internal Failure Rate External Failure Rate
Capacity Planning
Line Balance Supply Chain Management
Quality Assurance Diagram
CAE / CAM / CAD
Total Employee Involvement
Kaizens
Information Management
Auditors' comments during evaluation and salient points stated during the investiture ceremony Brakes India Foundry has a vision of achieving customer satisfaction by providing high quality products and services at globally competitive prices, enhancing the quality of life of employees and contributing to society as a responsible corporate citizen. Brakes India Limited-Foundry Division (BIF) possesses sound leadership and management, with total involvement of all the employees, who exhibit an impressive spirit of inquiry and strong will to improve. Brakes India Limited-Foundry Division (BIF) has achieved impressive business results by applying TQM methodology. Brakes India Limited-Foundry Divisions TQM is distinguished by: Deep analysis for strengthening core technologies Effective and efficient processes of developing new products using Computer Aided Technology, and Positive initiatives concerning Environmental Management and contribution to the local community.
While Brakes India Limited-Foundry Division (BIF) remains one of the global players in its field of interest, implementation of TQM methodology has definitely enhanced its reputation. TQM has helped it emerge as a scale and substance outfit with strong global footprints. Increased awareness, participation of all and the consequent goal congruence have improved the morale and pride in work. This in turn has resulted in improved quality of employees' work-life, empowerment of individuals in an atmosphere of transparency and trust, leading to employee satisfaction. As a consequence, the image of the organisation has improved and Brakes India Limited-Foundry Division (BIF) is confident of achieving total customer satisfaction.
Future plans
Brakes India Limited-Foundry Division (BIF) intends to become a global player by moving closer to the customers' doorsteps. It continues to strive to become one of the best foundries in the world. It intends to achieve Business Excellence through technological leadership towards ensuring total customer satisfaction.
15
MAHINDRA AND MAHINDRA LIMITED FARM EQUIPMENT SECTOR
About the company
Farm Equipment Sector (FES) is one of the six sectors in which Mahindra and Mahindra Ltd (M&M) operates. Mahindra and Mahindra Ltd (M&M) is the flagship company of the US$ 1.96 billion Mahindra Group. The Sector is involved in designing, manufacturing and marketing agricultural tractors since 1963. For the last 21 years, Mahindra and Mahindra Ltd (M&M) has been the market leader in the highly competitive Indian tractor market. The Sector manufactures 15 major models of tractors at four manufacturing plants located in Mumbai, Nagpur, Jaipur and Rudrapur, with a total employee strength of over 4000. Over 400 suppliers and 450 dealers are also a part of the extended Mahindra family. About 15 per cent of the FES production is exported to various countries, with the USA being the largest importer, where the tractors are sold and serviced by its subsidiary, Mahindra USA (MUSA), since almost a decade.
Awards
Mahindra and Mahindra Ltd (M&M) was awarded the Deming Prize by JUSE in 2003. With this, Mahindra and Mahindra Ltd (M&M) achieved the distinction of becoming the first tractor manufacturer in the world to win this coveted prize. Prior to this, two of M&M's tractor plants at Mumbai and Nagpur located in western India were certified to International Quality Standards ISO 9000, QS 9000 and ISO 14001 by the German Certification Agency RWTUV.
Evolution of Total Quality Management (TQM) System

The TQM journey at FES started in 1985. It can be broadly divided into four phases till 2003, when the company won the Deming Prize. a) Orientation Phase - 1985 to 1989 b) Introduction Phase - 1990 to 1994 c) Promotion Phase - 1995 to 1999 d) Development Phase - 2000 to 2003 a) Orientation Phase - The focus was on Quality Circle movement for employees staff and workmen during this phase. The movement started on a pilot basis in Mumbai in 1985,
subsequently spread to Nagpur and substantially increased in scale over the next decade, with about 50 per cent of the employees being involved. The Quality Circles solved hundreds of problems in operational areas to improve quality, housekeeping, safety and reduce wastage and cost. b) Introduction Phase - During this phase, FES focused on solving major cross-functional quality problems through involvement of managers as well as enhanced product quality by improving quality of manufactured and bought out components. This phase was marked by the use of Dr Juran's process of quality improvement for problem solving, use of Statistical Process Control (SPC) for all critical machining processes and systematic support to all suppliers to improve their processes and product quality. c) Promotion Phase - The focus during this phase was on improvement through implementation of robust systems. Accordingly, both the Mumbai and Nagpur plants were certified, first to ISO 9000 and subsequently to QS 9000. Business Process Re-engineering (BPR) was implemented in the manufacturing areas, with substantial improvement in employee involvement and productivity. During the same phase, the Global Leadership Vision to become the largest tractor manufacturer in the world was conceived and the application of Deming Prize guidelines, under the guidance of Dr Y Washio, an eminent TQM expert from Japan, was initiated. d) Development Phase - This stage focused on improving at a rapid pace, to progress towards the Vision of Global Leadership and challenging the Deming Prize before 2004. The New Product Development process was improved and brought to international standards under the guidance of Dr Washio. His inputs enabled substantial improvement in manufacturing and supplier support processes. Sales, dealer support and customer operations were systematised under the umbrella of Mahindra Sales System (MSS).

Commitment of leadership was fundamental for TQM implementation, and even moreso in challenging the Deming Prize. The Deming Prize Examiners evaluated this through Schedule A presentations that were made by the Chief Executive Officer and other senior managers, and additionally through a special Executive Session. The 'energetic efforts for practising TQM to realise the Business Strategy' under active top management leadership was highlighted in the Deming Prize Committee report.
17
Employee Involvement was another feature of TQM and the Deming Prize. Introduction of Continuous Improvement Teams (CIT) for workmen, Officers' Improvement Teams (OIT) and need-based Cross Functional Teams (CFTs) for officers ensured 100 per cent employee involvement over the last three years. The total 100 per cent employee involvement and improved labour-management relationship was another aspect appreciated by the Deming Examiners.

Due to implementation of TQM, marked improvements were perceptible in all key business processes: a) Manufacturing Due to Standardisation, effective usage of SPC and practice of Daily Work Management (DWM), rework and rejection (Quality) came down to less than 1000 PPM levels. For the same reason, the Field Quality measured by number of complaints in first 250 and 500 hours of operations, improved substantially. Productivity improved considerably on account of implementation of Business Process Re-engineering (BPR). b) Supplier Management The quality of outsourced components improved substantially owing to the support to suppliers. Similarly a marked improvement in Supplier Schedule Adherence was achieved.
C) New Product Development With the usage of tools like Quality Function Deployment products meeting more exact customer requirements could be developed and marketed. Use of tools like Failure Mode Effect Analysis (FMEA) helped reduce quality problems at the Product Development stage itself. Development Cycle Time was reduced substantially. Due to this initiative, the company could produce 15 new models, including some specifically for export, over the last three years. This led to a sharp rise in export figures. d) Sales and Customer Operations Following application of various innovative service initiatives like Mobile Service Van, Single-Window concept for spares procured from Original Equipment Manufacturers, the Overall Customer Satisfaction Index improved. Standardised Sales process introduced in the form of Mahindra Sales System (MSS) and support offered to dealers in various forms contributed to increased Market Share, widening the gap between Farm Equipment Sector (FES) and the next best competition.

FES could attract overseas attention on account of following strengths: Global vision backed by long term strategy, with specific focus on exports Capability displayed in developing new products required for the export market World-class manufacturing quality Low costs due to improved productivity and various cost re-engineering efforts Skilled and motivated workforce Capability to develop sales and service network, as demonstrated in the US markets Sustained market leadership in the Indian tractor market, the largest in the world Rapidly increasing exports World-class Quality and Management systems certified first through ISO/QS 9000, and subsequently recognised with the Deming Prize
19
Technological edge
FES' technological edge lies basically in three areas: a) World-class Product Development and R&D facilities manned by over 300 well-qualified engineers and equipped with world-class design and testing facilities. These have contributed to the development of new and attractive product offerings for export and domestic markets. b) Manufacturing facilities complete with world-class engine assembly plant, CED Paint Shop and resourced by a skilled work force. c) Constant exposure to the sophisticated US market through subsidiary-MUSA.
FES' model of Excellence, which was in general based on the Deming Model, can be summarised as follows: a) Foundation comprised the following: Company core purpose and core values. Top management leadership, Vision (of Global Leadership) and Strategy. b) The main pillars of their model of TQM comprised: Quality Assurance systems (based on standards) in New Product Development Manufacturing Supplier Management Sales and Customer Operations Policy Deployment - A top management led process/system of setting and deploying long-term targets that were effectively pursued with employees integrating them into their annual targets. Their achievement was assured through the effective practice of Daily Work management. Continuous improvement with 100 per cent employee involvement, using scientific problem solving tools and quality information data.
Standardised Support Services like IT, Cost Management, Delivery Management and Human Resource Management. c) On the top of this structure/model stood the Purpose: Satisfaction of all stakeholders, employees, customers, suppliers and society. Excellent business results.
The Deming Prize Examiners pointed out, There are several excellent features in the company-wide energetic efforts for practising TQM to realise the business strategy under the leadership of the President. They further added that,The results of Top Management driven TQM activities had shown remarkable improvement in the last few years as follows In a short span of time, entry in the American market was successfully achieved and the turnover in the new market was being continuously improved. Various management systems, not only within FES, but even involving Suppliers and Dealers had been inducted and deployed. Large scale BPR aimed at improving profitability and productivity was put in practice. Improvement in labour-management relationship was achieved.
21
The Deming Prize Examiners additionally appreciated the following: Ambitious and attractive Global Vision and road map Deployment of Policy to divisional and further levels Mature New Product Development system using various tools Correct use of SPC giving process capabilities of over 1.33 in all important processes Drastic reduction in rejection and rework and improvement in Field Quality Kaizen activity with 100 per cent involvement of employees Supplier Support resulting in drastic reduction in receipt rejection Support provided to dealers in Sales and Service events Systematic Training and Education system On November 11, 2003, Dr Hitoshi Kume, Chairman, Deming Prize Sub-committee, handed over the Deming Prize Medal and Certificate to the FES President, Mr K J Davasia, at Tokyo. At the time, Dr Kume read the following from the Certificate: Mahindra and Mahindra Ltd, Farm Equipment Sector, India has achieved outstanding performance by practising Total Quality Management, utilising statistical concepts and methodology based on company's excellent business philosophy and leadership as demonstrated by the senior management. In recognition thereof, the Deming Prize committee hereby presents the Deming Application Prize to them.
The journey undertaken for challenging the Deming Prize gave FES many benefits, which could be divided into two categories, namely: Culture-related Business result-related
Culture related
The whole organisation was steered in one direction, due to effective implementation of policy deployment. Involvement of all three major stakeholders, namely, employees, suppliers and dealers, in working together improved tremendously
Business result related

Product Quality improved substantially. Fifteen new models could be developed over 2000-03 Customer satisfaction and domestic market share improved Export volume increased substantially
Future plans
FES has set its next target to challenge the Japan Quality Medal before 2007, which is also awarded by JUSE. Only the Deming Prize winning companies are eligible for challenging this award. Till date only 10 per cent Deming Prize-winners have progressed and won this award. This award will require FES to benchmark itself with the best in the world and improve its core processes substantially, to achieve improved results. Dr Washio has agreed to guide the company in this journey. Inspired by his encouragement as well as continued commitment by the firm's top management, FES has decided to accept this challenge. FES is certain that the next established target would help realise its dream of Global Leadership with substantial international presence.
23
RANE BRAKE LININGS LIMITED
About the company
Rane Brake Linings Limited (RBL), a member of the Rane group of companies, began operations in 1967 at Chennai in southern India. Its second plant commenced operations in Hyderabad in 1991, followed by the third plant at Pondicherry in 1997. With a total built-up area of 29,247 sqm and employee strength of 825 people, RBL is the leader in the friction material industry in India. It has 13 depots located across the country. RBL manufactures friction products for brakes and clutches for all surface transport applications. Its range of products includes brake linings, clutch facings, disc pads and railway brake blocks. RBL's sales turnover stood at US$ 29.59 million in 2003-04, making the company a leader in OE, Aftermarket and Railways.
Awards
Deming Award winner for the year 2003 (within shortest time span among the winners) for its practice of Total Quality Management The first friction material industry in India to get ISO-9001: Quality Management System in the year 1994 from RWTUV, Germany. The company updated its ISO-9001 to 2000 version for all its plants in March 2004 ISO-14001: Environmental Management System certification bagged from RWTUV for all RBL plants in Feb 2003 Managerial excellence award in manufacturing sector from Madras Management Association for the year 2004
Total Quality Management (TQM) System

Globalisation of the Indian economy made the market very competitive and quality conscious. It became imperative for an Indian manufacturer to deliver products that matched global standards. TQM represented a complete plan to revitalise an organisation at all levels to deliver increased productivity and customer satisfaction. To match global standards and constantly upgrade its quality, RBL worked towards a global quality initiative. Total Quality Management and the Deming Prize were the first steps in this direction. As originally devised by the Japanese, it worked at four levels: Quality ways of thinking Daily work management
Policy management Total employee involvement
TQM in every activity

RBL's methodology essentially worked on the basis of the PLANDO-CHECK-ACT cycle for improvement, identifying areas of improvement and subsequently implementing the changes in a methodical way, to achieve the desired results.
RBL TQM Activities

1. Role Clarity and DRM (Daily Routine Management) Each Function (Role) had its unique purpose defined To achieve the purpose, a set of managing points was developed Managing points were to measure performance For greater visual impact, these were measured and monitored, mostly as graphs and activity charts Development of metrics or indices was important, specifically for non-manufacturing areas 2. TQM improved the following areas Manufacturing Quality Customer Quality New Product Development Waste Reduction

Total Employee Involvement Employee participation was elicited through Suggestion Schemes, Quality Control Circles (QCC) and Quality Improvement Team (QIT). Employee motivation was enhanced through appropriate reward and recognition schemes. Open communication was established with employees and their families.

Improvements To get a consistent product each time, process robustness and product reliability were improved.
25
Improvements in Process Quality Activity 1: Daily Analysis and Review Rejection analysis was done phenomena-wise, module-wise, segment-wise and machine- wise. Elimination of major causes was achieved through Quality Improvement Teams (QITs) and that of minor causes through Quality Control Circles (QCCs). Activity 2: Process Robustness Process parameters were monitored by performing checks at regular intervals and process-monitoring charts to improve process capability. Activity 3: Process Audits Process Quality was further ensured through regular process audits carried out by a team of qualified auditors. Activity 4: SOPs (Standard Operating Procedures) Introduction of visual aids to improve the level of understanding of the SOP. Improvement in Activities At RBL, methodology of performing an activity had a crossfunctional approach rather than the conventional functional approach. Improvements in New Product Development Improved New Product Development (NPD) systems were put into practice.
Improvements in Systems At RBL, improvements were brought about in the area of long term planning by introducing 'strategy with structure', policy deployment and strengthening the review mechanism. Organisation and Business Activities To focus on TQM activities, organisation structures were established. Earlier the organisation was viewed as a functional entity but with the advent of TQM, a cross-functional approach was introduced. Approach to Improvements At RBL, thrust was placed not only on improving activities but also on improving the system, the overall business methodology and eventually the improvement methodology itself.

RBLs strength is its continued consistency in quality. Its customers understand that the TQM system provides process robustness and product reliability, which ensure consistency in quality. It was a system the clients are familiar with and have confidence in.
Technological edge
The technology edge in RBL was its R&D. Its R&D division has more than 240 man-years of experience and a variety of formulations to meet different needs of the customer. RBL R&D was equipped with specific testing facilities, which could cater to the various requirements of the friction material industry.
27
New Product Development System and review mechanism were the key factors, which ensured development speed and fulfillment of customer specific requirements.
The company's Business Excellence model established a system of management with customer at the apex, viz, Customer became the goal Strategic policy management became the direction to win customer loyalty TQM provided the methodology TEI and continuous improvement became a way of life
Comments from the Auditors during evaluation 1. Formation of strategic business plan Linkage of SBP with market segment and business environment Application of DRM practices to review the strategies Strategies for bar rising, brand building, consultant to the customer applied according to market segment.
2. Effort to establish DRM as the basic system RBL inducted ISO-9001 in 1994 and built its DRM focusing on Standarisation. Based on this platform, RBL built the management system under TQM transcending ISO. PDCA became a common language on all shop floors and common PDCA formats were always used. 3. Usage of IT Tools in marketing, rejection analysis, inventory system and Daily Work Management were vigorously implemented.
Contribution to further growth/ business and international recognition
Rane Brake Linings believes that while it may not be possible to quantify the contribution of the Deming Prize to the company's growth/business over a short span of time, overseas customers understood that as a company which followed TQM process, it had basic quality systems, quality improvement activities and that the company could consistently deliver a quality product.
Future plans
RBL aims to become a global player by establishing its uniqueness on the global platform and orienting its people development towards international business. RBL believes that it also needs to PDCA its current strategy through new methodologies for brand building and bar rising, as well as develop new sustainable uniqueness to see the company through at least a decade into the future.
29
SONA KOYO STEERING SYSTEMS LIMITED
About the company
Founded in 1985 as Sona Steering Systems Ltd, it entered into a technical collaboration agreement with Koyo Seiko Co Ltd, Japan, for the manufacture of manual steering gear assemblies and steering column assemblies. Maruti Udyog Ltd, the largest car manufacturer in the country, picked-up a 10 per cent equity, giving Sona-Koyo the status of a joint venture company. Its first manufacturing plant is situated in the city of Gurgaon, approximately 35 km from New Delhi, the capital of India. Over the years, Sona Koyo has extended its product range to include power steering gear assemblies, propeller shaft assemblies, rear axle assemblies and its sub-assemblies. In 1998, the company established its second plant near Chennai, to cater to the requirements of car-makers in southern India.
Awards
Sona is the first steering systems company in the world, to win the Deming Prize, through its excellence in Total Quality Management. The company got ISO 9002 Quality Management System certification from RWTUV, Germany in 1994. The QMS system was updated to QS 9000 certification in 2000. The system was again updated to align with TS16949:2002 systems. The company's Environment Management System was certified according to ISO 14001 in the year 2002 by RWTUV Germany.
TQM System Evolution

When the company embarked on the TQM programme, the road was not easy. The company had decided to move on this path at a time when it already enjoyed a good reputation and was doing better than many companies of the same scale. This made its case for change difficult. It was extremely difficult to convince the employees to improve their performance. Many questioned the need for TQM when the company was already doing well. Sustained communication with all employees, in big and small groups, by the Chairman and other members of the top management, facilitated a better understanding of the future
needs of the company amongst its employees. Training in TQM activities complemented this communication and helped to impress upon everyone the necessity to improve through TQM at the given stage in order to weather the future uncertainties of business. The organisation gradually began to appreciate the value of TQM. In 1997, when Sona-Koyo commenced TQM with Professor Tsuda, the top management's intended aim was to ensure improvements in the company and not work for challenging the Deming Prize. Sona-Koyo subsequently emerged as the first steering systems making company in the world to win the coveted Deming Application Prize.

The drive for excellence was led by a strong mission and vision. A culture of nurturing the human potential had been established by a value system built upon three beliefs, namely, respect for the individual; service for the customer and excellence in the pursuit of goals. A system had been established to ensure a continuous focus on the mission and vision, by aligning these with the annual policy management and daily routine management. Extensive thrust on R&D and development of core competencies was the outcome of this system. All employees at Sona Koyo were involved in Group Kaizen activities similar to QC Circles. Operators solved their workplace problems using QC problem solving techniques. Deployment of Jishu Hozen of TPM further improved ownership amongst employees. All the operators were involved in gathering first-hand quality information, which was later analysed and used for quality improvement. The company had a suggestion scheme, which dealt with both implemented and non-implemented suggestions.

Significant improvements had taken place in quality-related business processes. In-house rejection, which was earlier reviewed by production supervisors, was now reviewed by Cross-Functional Teams (CFT), with inputs from operators.
31
Previously reactive counter-measures were taken, in order to prevent customer complaints. In the improved scenario, proactive actions were taken with the help of FMEA (Failure Mode and Effect Analysis). Monitoring of the cost of poor quality had started. Production operators had started doing preventive maintenance, earlier being done by maintenance people only. Schedules to suppliers were given on portals using Internet, which were earlier sent as hard copy by post. Target-setting, previously subjective, was being done based on action plans.

Sona-Koyo had its own R&D and all the necessary testing facilities, to cater to its developmental needs. It had developed a test-track, to anticipate possible abuse its products may encounter in the field and thus develop robust products. Over the years, Sona-Koyo had built capability to develop special purpose machines at low cost. Sona-Koyo had access to the technical support from Koyo in R&D and technological areas. Operations at Sona-Koyo had strong support from TPM, TQM and TPS techniques, its resultant effects being corroborated by the drastic improvement in profitability and quality of its products. Involvement of all the employees in these techniques contributed to lasting operating results. Utilisation of information technology, in all aspects of operations supported the requisite speed and efficiency for achieving excellence in manufacturing.
Technological edge
Sona-Koyo had developed capability in embedded software development for use in automotive electronics. With the help of Koyo, Sona-Koyo developed capability for Electronic Power Steering (EPS). Its partnership with customers, suppliers and collaborators in developmental activities, further enabled it to move towards its stated mission.
Sona-Koyo's model of excellence was built upon a strong base of retainment, improvement and breakthrough. Exactness, visualisation, Poka Yoke and operations standards were the pillars for retainment.
PDCA, TPM, Group Kaizen Activity and Managing Points and Checking Points were pillars for improvement. Deep Analysis, Management for Objectives, Quality Visits and Technology Development were pillars for breakthrough. The Operator's main role related to retainment; that of the middle management to improvement; while, the top management focused on breakthrough.
Model of Excellence
Implement year cycle of management
Improvement Phase
Day cycle of management
Time
We highly evaluate the following achievements of Sona Koyo: Formulation of customer-oriented vision 2010 namely, 'To make Sona Koyo "A Supplier of Choice" to Global customers'. Setting up of medium-term management objectives based on this vision. Successful involvement of employees under the powerful leadership of the top management. Enthusiastic promotion of TQM, integrating various management techniques, such as Group Kaizen Activities (GKA), 5S, Poka Yoke, ISO, TPM, ERP etc.
Operators
33
ns m ct ra re tio ag Di pera DS Di R O A DA Q AN ke s ST Yo es ka sin ess Po Bu roc ram P iag S' D 5' n tio sa ali su Vi
Daily Work Management
Retainment Phase
Middle Management
Level
rd t ing da irec er s an St r ind tion in e dard g En tan fo era ti c S op ma h ste ac f es Sy pro lysis t o tiv en bjec l g ap ana sin ym o ta of oo ing plo any en Ch anag De mp artm M int Co dep ives Po to ject ob
Breakthrough Phase
Top Management
Proactive induction of IT. Efforts to upgrade quality, including maintenance of zero line stoppage at the customer's end. Drastic improvement in respect of cost, inventory and availability. Strengthening of the new product development set-up. Excellent results in sales turnover, profitability etc."
Moreover, following the positive induction of TQM, the company was successful in revolutionising the mind-set of all the employees to voluntarily think and tackle various problems, develop a customer-oriented approach, transform the corporate culture and embrace corporate citizenship. The characteristics of TQM activity in Sona were: After enthusiastically promoting TQM, the management had achieved remarkable results. Under the strong leadership of the top management, the company as a whole worked sincerely at TQM activities alongwith establishing TQM as a factory culture, which showed corporate citizenship. With the advancement of IT, the company steadily established favourable management systems in respect of QCD. As a result of the aforementioned activities, remarkable results were achieved by the management with respect to profit, sales, strengthening new product development, drastic improvement in work ratio, stock, cost, and maintaining zero level of line stop at the customer end. It reduced the rejection level, which compared favourably with that of similar industries in the developed countries.
The Prize strengthened the brand equity of Sona-Koyo. It meant that it was hence taken more seriously by customers, prospective employees, shareholders, even the general public and industry observers. In financial terms, its biggest impact was on export plans. The Prize catapulted Sona Koyo onto the radar screens of global auto majors looking for low cost world class suppliers. The company could now leverage the Deming Prize to rapidly scale up its exports. While bidding for export orders, it no longer felt the necessity to convince prospective customers about the business practices and product quality.
The Prize substantially affected the company's export plans. Whilst earlier Sona Koyo was confident of achieving an export volume of not more than US$ 8.60 to US$ 10.75 million by 2006-07, it was now certain to cross an export volume of US$ 21.51million for the same period. Accordingly, it had to revise its investment and product development plans. Orders have begun to flow-in and exports are expected to increasingly become a larger contributor to its turnover.
Future plans
The automobile industry is expected to maintain its strong growth momentum. Much of its future growth prospects would depend on its ability to deliver orders in 2004-05. The company intends to continue making investment in enhancing capacity to fulfil the orders in hand. Apart from manufacturing excellence, Sona Koyo also plans to harness its design and development capabilities. In accordance with its vision of becoming a "Supplier of Choice" for global customers, the management is, therefore, focusing on: Developing and retaining the company's human capital De-risking the business by diversifying to different markets in terms of geography, products and clients Strengthening its platform as a specialised player in steering systems Building infrastructure to service overseas clients
35
SUNDARAM BRAKE LININGS LIMITED
About the company
Sundaram Brake Linings Limited is part of the US$ 2 billion TVS group of companies. Formed as a joint venture with a leading friction material manufacturer in USA, it subsequently became a 100 per cent Indian company in 1995. .A pioneer in leading-edge technology asbestos-free friction materials in India, it has three manufacturing plants, one at Padi (Chennai) and two at TSK Puram (Madurai), located in southern India. It manufactures friction materials for automotive and non-automotive applications in asbestos and asbestos-free grades. The principal products manufactured by the company are: Drum Brake Linings; Disc Brake Pads; Moulded Clutch Facings; Woven Clutch Facings; Flexible Rolls and Bonded Shoes. It has 790 employees. Its sales turnover was US$ 25.98 million in 2003-04. Export sales at US$ 11.29 million contributed nearly 44 per cent of the turnover. Sundaram Brake Linings exports to more than 50 countries worldwide. It has a strong presence in the domestic OEM and after market. It has been accredited with QS 9000 / ISO 9001 Quality Management System and ISO 14001 Environmental Management System by Bureau Veritas Quality International, London. The company is actively implementing Total Quality Management, Total Productive Maintenance (TPM) and Lean Manufacturing Concepts.
Awards
Sundaram Brake Linings was awarded the prestigious Deming Application Prize for the year 2001 by the Deming Prize Committee of JUSE (Union of Japanese Scientists and Engineers) for practising Total Quality Management (TQM), utilising Statistical Techniques and Methodology. SBL is the first Friction Material manufacturer in the world to win this award. State-of-the-art in-house design facilities through Computer-Aided Design and Drafting Techniques and testing of products on Computer Controlled Inertia Dynamometers, and fully instrumented Test Vehicles, provided the company the necessary infrastructure to carry out development work and meet the growing needs of friction materials for the automotive industry. SBL also have won the following awards and certifications in its journey on the TQM path: Export Award for the year 1986 from Automotive Component Manufacturers Association (ACMA), India
Productivity award for the year 1988-89 from National Productivity Council, India, for second best Productivity Performance in Automobile Ancillary and Light Engineering Industries National Award for Technology Development for the year 1989-90 Productivity award from the Chief Inspector of Factories, Government of Tamil Nadu, for the year 1989-90 Recognition of in-house R&D by the Department of Scientific and Industrial Research (DSIR), Government of India in 1992 Technology Award from Automotive Component Manufacturers Association of India for the year 1991-92 Best Productivity award from National Productivity Council in 1992 National award for R&D efforts by DSIR in 1993 ACMA productivity award in 1999 & 2000 Quality Man award conferred on the Chairman & Managing Director of SBL by the National Institute of Quality and Reliability in the year 2000.
Product certifications
IS 11852 TuV / KBA (Kraftahrt Bundesamt, Germany) FMVSS 121 (Federal Motor Vehicle Safety Standards), North America ADR (Australian Design Rule) SABS (South African Bureau Standards)
TQM Evolution
a) Early learning Phase (1986-1990): The company made a departure from the traditional management practices it had followed, since its inception till 1986, to adopt SQC (Statistical Quality Control) tools in its activities. This was a company-wide programme led by an Indian Sensei with beneficial results. During this period, SBL also embarked on an exercise of self-learning through books written by Taiichi Ohno, Shigeo Shingo etc helping the company gain an early insight into the Toyota Production System. SBL was also exposed to the concepts of throughput and inventory management in the book - 'Goal and Race' from Eliyahu Goldratt.
37
b) Manufacturing System Redesign (MSR) Phase (1991-1993): SBL was able to get the help of Lucas Engineering and Systems, UK, to introduce this new concept based again on the TPS (Toyota Production System). In MSR, the company changed the manufacturing layout from process to product and dedicated lines. Cell concept was used and created to meet the needs of customers. This placed a greater focus on customer orders, resulting in substantial improvement in schedule adherence. SBL also introduced the Supplier Integration Programme, to integrate suppliers into its business system and organised the Distribution Cell to ensure improved deliveries. MSR also addressed the issues of Quality and Reliability of products, New Product Development (NPD) process, and SMED (Single Minute Exchange of Dies) concepts, besides improving employee involvement. c) Sustaining MSR Phase (1994-1997): During this period, the concept of MSR was extended to all the manufacturing cells and office areas to widen the scope of application. The concept of cellular manufacturing was strengthened; SMED was practised regularly and customer schedule adherence increased substantially. This was a period of consolidation. d) TQM and Deming Phase (1998-2001): SBL was part of the Confederation of Indian Industry (CII)-Maruti Udyog Ltd. (MUL) TQM cluster, which was formed to help MUL vendors raise their company-wide quality levels to world-class standards. The Sensei was deputed from JUSE, Japan, and the whole programme was very intense and instructive. All the members benefited from this cluster. The performance matrices amply proved the efficacy of this cluster. SBL was recommended to challenge the Deming Prize in the year 2001. e) Post Deming phase: SBL continues to practise TQM with full vigour and the benefits have been evident in the company's quarterly business reports.

Since the inception of the company, the Chief Executive Officer was fully involved in all the change management programmes and was the main driver behind the major changes in the company. His handson approach helped many managers to convince the employees of the urgency of purpose and the imperative need to reach world-class levels to maintain its thrust, both in the domestic and the export markets, which the company had captured in the interim. The Chief Executive Officer of SBL also had access to all the employees because of his Gemba approach, which helped expedite matters.
All the employees were given training from time to time, in accordance with a training calendar and no section of the company was allowed to lag behind in acquiring knowledge to enhance its understanding of TQM. The training given as per cent of time worked was increased gradually to enrich the knowledge base. The TVS group has had the reputation of maintaining amongst the best industrial relations in the world. This emanates from the founder's belief that employees are the best assets of the organisation, and that the employer should do his best to keep them happy and involved in the company's development programmes. Owing to the positive attitude of both the management and the workers/workforce, there was total participation and co-operation in all the programmes introduced by the management for achieving an incremental change through TQM. During the last two decades, the company introduced many programmes to raise performance levels. All the employees participated fully in Kaizen implementation and effecting improvements in manufacturing activities through suggestion schemes.
Regular improvements in business process

SBL was recognised as one of the learning organisations because of its penchant for learning new skills and always being at the forefront of introducing new ideas. From the self-learning stage in the mid-eighties, to the level of challenging the Deming Prize, SBL has taken many challenges. SBL was the first to realise the potential for exports and commenced exporting from the second year of its inception. This called for the establishment of a quality management system that would meet ISO 9000 standards. SBL was one of the earliest to get the ISO 9000
39
certification. SBL went on to acquire other certificates, like ISO 9001, QS 9000 and ISO 14001 for environment systems. SBL had an established in-house R&D centre to carry out R&D work pertaining to their products, namely, friction material manufacture. Through vigorous implementation of Suggestion Schemes and Kaizen, SBL benefited immensely in terms of cost savings, and succeeded in extending cost effective products to the customer.

SBL exports to more than 55 countries, spread over all the continents. SBL is an experienced player, having entered the field nearly sixteen years ago. The company exports nearly 50 per cent of its production. SBL had several quality accreditations to its credit and its products have been well-accepted. SBL had established a good image for quality, cost and delivery. Most of its customers have had a long-term relationship with the company.
Technological edge
SBL has been a pioneer in the manufacture of heavy-duty commercial vehicle asbestos-free blocks, for both, domestic and export markets. It has more than 1200 part numbers to offer. SBL was a pioneer in the manufacture of woven asbestos-free clutch facings in India. The company had adopted single piece flow in their manufacturing. SBL also offered state-of-the-art CV pads in semimetallic formulations, to meet the requirements of some of the more popular vehicles in the EU countries.
SBL adopted teamwork as its model. SBL's approach to the Deming Prize brought out the best in each employee, and the environment was charged with enthusiasm and hope. The three year learning acquired on TQM in the cluster was put to test, and every employee was keen to show his mettle. Ultimately, it was teamwork that made SBL a winner. A separate task force was formed to co-ordinate the activities of various departments. Each department had to prepare a detailed report on how it had implemented TQM. There was much iteration before the perfect report that represented the reality at the Gemba could be written. Here again teamwork was visible. Managers, supervisors and workers all worked in harmony to prepare the excellence model.
Specific comments by auditors during evaluation and specific points mentioned during the investiture ceremony
SBL was not a mere product producer, but had an integrated system ranging from R&D through Marketing It had plants in Chennai and in a village location 500 kms south of Chennai near Madurai The plant was surrounded by gardens, trees and had an ecological balance that was developed gradually over many years, with the will and actions of management and the persistent efforts of employees SBL displayed a strong management will towards a better quality product and environment through policies for quality and environment SBL had implemented Business System Redesign, TQM, TPM and Lean Manufacturing methods at various stages. Remarkable improvements in business results were achieved Improved environment inside the plant compound was excellent. Roads, buildings, facilities, and plants were well-maintained with no litter Policy management and Daily management were effectively implemented, throughout the organisation It was good that the company succeeded in reducing the number of returned products, defective products and scrap rate New Product Development system was integrated into its operating mechanism The company introduced asbestos-free product policy for the first time in Indian industry The company had a high level of organisational power in speed and vitality It was good that the management had a clear sense of purpose to reach as quickly as possible the world standard level by recapturing the lost time by introducing the 5S, TPM and Lean Manufacturing techniques etc, one after another. The superiority of SBL management lay in the fact that the company analysed the problems it had, introduced techniques suitable for solving the problems, and united its work force to implement them. The declaration of the Chairman at the top management interview, that the company would integrate methods under the Umbrella of TQM was a thought, full of suggestions worthy for the future.
41
It was unique that the company was toiling to change the US and British style of management, learnt in the past, to the Japanese style of management, using TQM and achieving good results It was excellent that unlearning and relearning were emphasised in the actual nurturing of human resources It was highly appreciated that the company aimed to be a leading company for TQM in India, and endeavored to spread TQM techniques to Indian industries
Quality
1. Customer returns reduced from 1450 ppm to 736 ppm 2. Incoming material rejection came down from 9 per cent to 1.5 per cent
Cost
1. Profit before tax improved from 8 per cent to 11 per cent 2. Overall inventory turn improved from 15 times to 20 times
Delivery
1. Overall Sales improved from US$ 18.37 million to US$ 25.98 million 2. Export Sales improved from US$ 9.23 million to US$ 11.29 million 3. OEM sales improved from US$ 3.59 million to US$ 8.02 million 4. After market sales improved from US$ 6.32 million to US$ 6.45 million 5. Export delivery performance improved from 98 per cent to 100 per cent 6. OEM delivery performance improved to 96 per cent 7. After market delivery performance improved from 75 per cent to 97 per cent 8. Zero customer line stoppage achieved 9. New Product Sales improved from US$ 2.09 million to US$ 2.47 million
Safety & morale

1. Number of suggestions (total) increased from 2500 to 4000 2. Accident severity rate reduced from 2002 to 800 3. Air-borne asbestos level came down from 0.25 fiber/cc to 0.21 fiber/cc 4. Absenteeism dropped below 1 per cent 5. Asbestos free production to overall production improved from 50 per cent to 61 per cent
International recognition
In Europe, technology for CV Linings was changing over to CV Pads. Manufacturers in Europe were focusing their efforts on CV Pads. The European manufacturers were outsourcing CV Linings manufacture. And SBL, after winning the Deming Application Prize 2001, became a potential source for branded programmes. Simultaneously, SBL embarked on development and sales of CV pads for popular references in Europe (10 references for 2003-04 and 22 customers) Sales for North America increased from US$ 0.73 million in 2001-02 to US$ 1.55 million in 2003-04.
Future plans
SBL will continue to play an important role in the export market. With the extensive introduction of CV disc pads in EU countries, SBL intends to gear up to meet the new challenge. SBL is also entering the Railway Composite Brake Block business, which has a huge potential in India. The directed objective is to be a cost-effective supplier of quality products to one of the largest public transportation services in the world. With continuous growth in passenger vehicles and utility vehicles (multi and sports) the need for disc brake pads is expected to increase by volumes. SBL intends to be a substantial player in this segment of the globally expanding market.
43
TVS MOTOR COMPANY LIMITED
About the company
TVS Motor Company Limited (TVS-M) is a member of the TVS group, the largest automotive component manufacturing group in India with annual sales of more than US$ 2.5 billion. The group has been able to achieve this pre-eminence owing to its commitment to promoting trust, value and customer service. The company believes that market leadership and rewards of business follow naturally. TVS-M is one of the largest two-wheeler manufacturers in India, with an annual sales turnover of US$ 614.28 million registered in 2003-2004. Sundaram-Clayton Limited (SCL), a TVS group company, began manufacturing mopeds in 1979 at its new Moped Division at Hosur in southern India. Ind-Suzuki Motorcycles Limited (ISML) was formed in 1982 as a joint venture between SCL and Suzuki Motor Corporation (SMC), Japan. The commercial production of motorcycles commenced in 1984. During 1987, SCL Moped Division was acquired by ISML. The new company after this merger was named as TVS-Suzuki Limited (TSL). During 2001, SMC and TVS decided to part ways and the company name was changed to TVS Motor Company Ltd.
Awards
TVS-M was awarded the Deming Prize, the world's most prestigious and coveted recognition in Total Quality Management on November 12, 2002 in Tokyo, Japan Emerging Corporate Giant in the Private Sector awarded by The Economic Times and the Harvard Business School Association of India on November 14, 1996 Technology Award 2002 by the Ministry of Science & Technology, Government of India, for the successful commercialisation of indigenous technology for TVS Victor Best Managed Company award by Business Today, in 2003 Star of Asia Award bestowed on Mr Venu Srinivasan, Chairman and Managing Director, TVS-M, by Business Week International, in November 2003.
Evolution of TQM
TQM had always been an organisation-wide effort. Not merely about producing continuously, increasing standards of quality in
goods and services, but about creating an institution with a concern for quality in all that it did. The company views TQM as a corporate way of life. TQM continuously improved quality of all processes, products, and services through employee involvement, enhanced customer satisfaction and shareholders loyalty, leading to improved business results. It is notable that both the process and end results received due emphasis. TVS-M, as a part of the TVS group, had an advantage of the rich TVS heritage. The values of trust, discipline and customer service were imbibed as well as honed. TVS-M had commenced its TQM journey under very difficult circumstances in the early nineties. Though TVS-M was the first company to launch100cc Indo-Japanese motorcycles in India, the entry of other players had reduced its market share and sales. The company had to focus on financial survival in the short term, and prepare for revival and growth in the long term. A series of steps, beginning with diagnosis, leading to establishment of strategic directions, followed by sustained communication and education were taken in three phases : - Planning phase (1990 to 1995) - Promotion phase (1995 to 1999) - Deployment phase (1999 to 2002) The recognition that came through the Deming Prize had been possible only through team effort consistently practised over a long time span. The Deming Prize was a recognition of a decade long effort to build an organisation with an overall capability that was designed to be benchmarked against external and international standards. TVS-M had embarked on a journey of continuous improvement taking the incessant drive for quality further into the organisation, through the JIT and TPM initiatives. Through this method, targets were set for zero defects and zero breakdowns and high quality, low cost products.

TVS-M leadership strongly believed in TQM. The values of the founder of TVS Group were in consonance with the concept of TQM. This became the driving force behind the sincere implementation of TQM activities.
45
Employee participation and co-operation established the foundation for the success of TQM in TVS-M. In the policy management process, three breakthrough objectives of the company were achieved through taskforces, cross-functional teams and supervisory improvement teams. Additionally, quality control circles aligned with the departmental and sectional objectives and action plans. The employee suggestion system enabled continuous improvement at the workplace. The individual workmen could make suggestions for workplace improvements. In the TEIAN system, those making suggestions took responsibility for implementation. The implemented suggestions were evaluated and awarded. Additionally, those making the best suggestions from each unit and department were rewarded by the President and Managing Director. The company was able to secure 100 per cent employee participation in TQM. The employees had completed more than 1,468 projects through Quality Control Circles (QCC) in 2003-04. The average number of suggestions implemented per employee increased to 44 from 41.
Regular improvements in business processes Order obtaining process

The application of TQM principles resulted in effective planning and implementation of order obtaining processes. Area sales and service organisation had been decentralised, to service customers directly at the points of purchase. Policy deployment and daily management were implemented across all area offices. In order to clearly communicate the product superiority of existing products and new products, training was regularly imparted to the sales, service and dealer staff. Customer satisfaction survey system was introduced to measure satisfaction of customers and improve product performance. Dealers being the first customer, a dealer management system was introduced through ERP to improve dealership processes. Sharing of best practices and horizontal deployment were undertaken through dealer conferences.
Order fulfillment
Quality and productivity improvement targets of plants were achieved through the lean manufacturing system and JIT projects. Significant improvements were achieved in productivity, quality and cost through Total Employee Involvement (TEI). Overall Equipment Effectiveness (OEE) was continuously improved through application of Total Productive Maintenance (TPM) concepts. Lean and TPM were two key initiatives undertaken under the TQM umbrella for rapid improvement in Quality, Productivity and Cost. The company had a rigorous system of cost deployment, which was monitored on a continuous basis and ownership developed across the organisation. The initiatives on e-buying and global sourcing resulted in substantial cost savings. TQM practices of TVS-M were implemented among suppliers through a cluster approach by the TVS-M supplier cluster taskforce.
New Product Development

Substantial ground was covered in improving internal efficiencies in New Product Development and Design through a better understanding of customer needs and product usage conditions.
47
Structured customer visit programmes were conducted to capture customer response and expectations. Suppliers and machine tool builders were involved in the early stages of product development. Quality proving, done in-house and at suppliers-end, resulted in defect free products and fast ramp-up.

Continuous increase in export business was spearheaded by its strengths in good product development capability, world-class manufacturing facilities, good quality, reliable products and sales and service support.
Technological edge
The design, development and testing facilities were of world-class standards and could develop products to suit customer requirements. The company worked with leading technological research laboratories and institutions across the globe as well as in India for development and testing of advanced technologies. The R&D team applied for over 60 patents and its engineers published 30 national and international papers.
Understanding of TQM
TQM was a systematic approach adopted throughout the company to achieve customer satisfaction with the involvement of all its people. TQM was logical in its approach that worked with a plan, implemented it, checked the result and further improved it based on the result. The learning derived from TQM was converted into standards to ensure that the functioning of the company was system-based.
Total Employee Involvement (TEI)

TEI was the foundation of TQM. All employees in the company participated in continuous improvement while the operating level employees participated in suggestion schemes and quality control circles, the supervisors and managers participated in Supervisory Improvement Taskforces and Cross Functional Taskforces. Themes for improvement were aligned to the annual policies of the company.
Daily Work Management

Daily work management involved defining and monitoring key processes, ensuring that they met the set targets, detecting abnormalities and preventing their recurrence.
Kaizen (continuous improvement)

The company encouraged continuous improvements in all aspects of work using CFT, SITs, QCCs, and suggestion schemes involving all the employees.
Policy Management
Policy management processes were used to arrive at annual breakthrough objectives, formulated through detailed planning. The objectives were further deployed company-wide and reviewed periodically.
Training
To build necessary knowledge skills and competency among all employees to achieve business objectives, training was planned and provided.
Standardisation
Key management activities of every department were documented to enable improvement in work practices and knowledge base of the company.
New Product Development

The focus was on new multi-product development with reduced lead-time, besides managing the target cost.
TVS Brand
TVS Motor continued its process of building the brand image in India, the focus being to build the TVS brand globally.
Specific comments from the auditors during evaluation and specific points mentioned during the investiture ceremony Excellent factors
TVS-M established an excellent leadership structure for the top management to practise TQM
49
Total employee involvement was seen as the driving force behind learning, absorption and incorporation into daily activities Organisational competence for new product development had reached sufficient levels Diverse management techniques were acquired in a positive manner and established firmly as organisational activities under the TQM umbrella
By faithfully learning the fundamentals of the management techniques and promoting various activities, the man management indices showed considerable improvement.
Points for improvement

TVS-M needed an integrated approach with regard to brand recognition and strategy.TVS-M needed to pick up new tools in order to build capability on technology.
Deming Prize was a milestone in the journey towards continuous improvement in customer satisfaction. TVS-M now had a higher responsibility of maintaining and improving the high standards of quality and customer satisfaction. By applying TQM principles, the company had improved its sales volume, turnover and profit. New Product Development was accelerated and more new products were getting launched with shorter lead-times. Exports business was continuously growing. Customer satisfaction on new products had been improved.
Future plans
The company's future plans aim at: Building the TVS brand in India and other countries, especially in Asia. Developing advanced technology and multi-project management capability to develop new products for the Indian and international markets. Achieving global competitiveness levels in costs. Improving supplier and dealer capabilities. Training leaders for key positions for supporting business growth.
51
BIRLA CELLULOSIC KHARACH
About the company
Incorporated in August 25, 1947, Grasim Industries commenced operations at Gwalior in central India in 1948, with a small rayon weaving unit using imported rayon. In 1954, GRASIM set its focus on the production of rayon, a man-made fibre (Viscose Staple Fibre). Birla Cellulosic, a producer of VSF, was commissioned on December 18, 1997, as a unit of Grasim Industries Limited, the flagship company of the Aditya Birla Group. It is based at Kharach in the state of Gujarat in western India. Cotton and VSF are the only two fibres in the world, which are bio-degradable. The yield of VSF per acre of land is, however, about seven times that of cotton. VSF is highly comfortable in humid as well as warm climates. It has extensive application in hygiene and baby products, medical products and cleaning wipes.
Awards
Birla Cellulosic was the first company in Gujarat to get the Deming Prize in 2003.
Process of WCM/TQM Implementation Birla Cellulosic divided its implementation of WCM (World Class Manufacturing)/TQM processes into five distinct steps. These steps were evolved to deploy various systems/process of implementing WCM/TQM. These steps are as follows:
Team formation
In this process, teams were formed at different levels (L1, L2 & L3), and ownership of areas, equipment and members was assigned to enable effective Team Working.
by Ownership
in Terms of Token Awards
by Knowledge of Abnormalities
among Teams on 8 Dim & 14 KMFAs
Equipping teams
One of the best ways of empowering people was to give them the power to solve problems in their field of operation. By way of this process, each and every employee was trained in Problem Solving tools through in-house workshops.
Enliven senses
As employees learnt to solve problems, it was necessary to make them aware of problems that they would find at their work place. All employees were hence made aware of the "Eight Types of Abnormalities", which were possible in an organisational milieu. Following this training, problems started becoming apparent to employees, thereby improving their sense faculties.
Competition
As employees developed the ability to find abnormalities in their work area, their efforts needed to be focused on achieving results in business processes. For this purpose, fourteen business processes called Key Manufacturing Focused Areas (KMFAs) were identified and performance parameters in each were defined. Teams of various levels competed on these performance parameters to give speed and purpose to abnormality identification and its removal. This step involved complete management of all processes/KMFAs, like system development, defining performance parameters, monitoring these parameters, reviewing the system and aligning it with business objectives.
Recognition
Various team level and individual recognitions were instituted with a dual purpose. In the first place, high performance when recognised, set examples for others to see and replicate, lending speed to excellence. Secondly, timely recognition of celebration further strengthened teams to restart cycles of deployment.

Visionary leadership showed new ways of achieving excellence to the whole organisation, providing a role model for all the initiatives being undertaken by the organisation. For example, "no helpers at shop floor" is the culture of Birla Cellulosic, which started with "no peons for top most executives". Senior executives frequently visited customers to understand their requirements
53
and problems, and made additional efforts to resolve them. They encouraged all employees to visit customers in order to establish mutually beneficial relationships. Employees of Birla Cellulosic, starting with the technicians (generally referred to as workmen in other organisations) to the level of President, visited customers with a defined agenda to understand their needs and assist them. To help develop a learning culture, top leaders regularly received training inputs and, they in turn imparted training to various employees.

Birla Cellulosic adopted the Plan, Do, Check and Act (PDCA) Approach for achieving continuous improvement in Business Processes. Planning started with reviewing past performance of the processes, and setting targets based on it, rather than designing the approach appropriate to achieving the set target. Do or deploy was the approach designed to ensure full implementation. It was checked whether the set target was achieved or not. If it achieved the desired target, due action was taken to standardise it to sustain similar performances or replicate it to improve similar processes. In case the desired target were not achieved, appropriate action was taken to achieve it. This was the improvement cycle that the company followed.

The company's consistent record of achievements in the area of Quality in products and at the workplace helped it gain recognition internationally as a quality-oriented organisation. The company's international recognitions, such as the Deming Prize, and its growing exports bear testimony to this fact.
Technological edge
The Birla Cellulosic VSF manufacturing facility at Kharach is a state-of-the-art manufacturing facility. Birla Cellulosics primary objective was to redefine the cellulosic fibre, in terms of quality, cost and its applications. Some of the major equipments and facilities that support their processes in the plant are boilers from Bharat Heavy Electricals Limited (BHEL), India, Turbines from TOYO DENKI, Japan, spinning machines from SFD Nagda, aftertreatment machines from MAURER (Swiss) and SFD Nagda, dryers from National (USA) and SFD Nagda and baling press from Autefa (Germany).
The figure depicts the WCM excellence model adopted by Birla Cellulosic. The unique features of this model are as follows: It is an integration of TQM and TPM It covers all national and international award philosophies It focuses on stake/share holder's value performance-oriented model with respect to QCDIPESM Provides systems, which were totally aligned with the PDCA Approach for consistent and sustainable growth Aligns the whole organisation towards a culture of excellence WCM / TQM concepts supported by a strong facilitating structure
Work Environment (5S), Safety, Focused Business Health & Improvement, Environment Technology & Innovation
Supply Chain Management
Information and Systems
Total Asset Management
Liaison, Team Force and Skill Development
Strategic Quality Management and Six Sigma
Market Orientation and Customer Driven
The Deming Prize Committee appreciated the company's bold strategy targeted not only at the Indian domestic market but also exports. Policy management had been successfully applied thoroughly for the realisation of strategy, which was steadily leading to success. This was considered a unique point of the business unit. The strong leadership demonstrated by top management in TQM promotion was acknowledged. Establishing the "TQM gallery", which primarily meant providing an overall picture of the
55
company's challenge was explained not only to employees but also to all concerned parties. This intiative contributed to active participation and developing the company into a single entity successfully. From the perspective of a materials industry, it was observed that the business unit focused on customer values at each process of the customer chain, concerning consumers and global environment. The company successfully innovated to introduce new products by actively conducting customer surveys and collaborating with customers. The business unit contributed to the return of viscose, which had earlier registered a decline in comparison. This was a unique achievement of this business unit. Mr Hiroshi Okuda, Chairman of the Deming Prize Committee, on Birla Cellulosic, during the investiture ceremony held on November 11, 2003, in Tokyo, Japan. Birla Cellulosic (a unit of Grasim Industries Limited) has achieved outstanding performance by practising Total Quality Management utilising statistical concepts and methodology based on the unit's excellent business philosophies and leadership, demonstrated by its senior management." For Birla Cellulosic, this achievement was the outcome of visionary leadership, exhaustive training inputs, an extensive focus on involving people, and continuous, seamless communication.
In the Indian context, the VSF textile manufacturers were being severely affected. The alternate fibres and the highly competitive international players were cutting, in large measure, into the domestic yarn market. To weather the onslaught, VSF textile manufacturers had to import good quality VSF at higher cost, which in turn affected their competitiveness. Birla Cellulosic identified the Critical Success Factors (CSFs), to build an international image for Indian viscose fibre for making inroads into the quality conscious European and US markets. Birla Cellulosics targeted purpose was written - even before it was taken-off the drawing board; namely, to reverse the declining trend in the VSF Life Cycle, by producing high quality products at low cost, and superior service, coupled with capabilities to meet continuously enhancing and varying customer demands. The company had commenced the institutionalisation of WCM/TQM since its inception. It had matured adequately over a period of time through continuous review of processes
to achieve the desired improvements. This enabled BC to win various national, and internally, company (The Aditya Birla Group) awards. This did not satisfy the purpose of Birla Cellulosic's senior management, which decided to go for the world's most prestigious quality award to build an international image of Viscose Fibre Quality for making inroads into quality conscious European and US Markets. As a result of this recognition, the company was successfully able to check the import of VSF into India from 5112 MT in 1999 to 1755 MT in 2004. The company also established its presence through significant exports to European countries like Italy, Spain, Germany, Greece, Belgium etc, thereby strengthening its image in the field of quality.
Future plans
Having achieved the primary objective of becoming a world class manufacturer of VSF, Birla Cellulosic is moving towards a phase of consolidation and expansion. To fulfil the Group's endeavour to become the premier VSF manufacturer in the world, and also the most preferred source of VSF, Birla Cellulosic is taking steps to consolidate its quality initiatives and expand its capacity in keeping with the Group's objectives. Further as a demonstration of its commitment to service the customer and "New Users" every time, Birla Cellulosic is commissioning its Textile Research and Application Development Centre (TRADC). This is intended to help the customer to experiment with their end-products, which is also eventually expected to enable Birla Cellulosic better understand its customer expectations. The primary objective behind these initiatives is to help the Indian textile industry develop viscose and viscose blended-end products, thereby strengthening the industry to grow in the international market.
57
BIRLA CARBON
HI-TECH CARBON GMPD

About the company
Hi-Tech Carbon (HTC) is a unit of Indian Rayon & Industries Ltd. part of the Aditya Birla Group of Companies. The A V Birla conglomerate is a US$ 6 billion group in the global arena. The Groups Carbon Black business is promoted under the brand BIRLA CARBON globally. HTC has two manufacturing plants in the country. The first plant was installed at Renukoot in the state of Uttar Pradesh in the year 1988 for the manufacture of Carbon Black. This plant has an annual production capacity of 76,000 metric tonnes. The other plant is located in Gummidipoondi in the state of Tamil Nadu, which was commissioned in the year 1998 with an annual capacity of 44,000 metric tonnes and subsequently expanded to 84,000 metric tonnes in January 2004. The company manufactures furnace grade of Carbon Black (CB) by partial cracking of petroleum feedstock. CB is widely used in rubber as a reinforcement agent, covering tyre and moulded rubber goods industries for imparting mechanical properties. It is also used as a specialty product for imparting tint to final products, in plastic, ink and dyes industry globally.
Awards
HTC, Gummidipoondi unit, received recognition from the Deming Prize Committee (DPC) and was awarded the Quality Control Award for Operations Business Units in the year 2002. The Unit achieved the distinction of receiving three ISO certifications (ISO 9002, QS 9000 and ISO 14001) in the year 1999, emerging as the first company to gain such a distinction. In 2000, the Unit received ISO 18001 and ISO 17025 accreditation too. In addition, it also received Certificate of Merit from the Indian Merchant Chamber of Commerce and many other awards for Energy Conservation etc. HTC was accredited to TS 16949 in the year 2003, which complies with the standards of ISO 9001: 2000 and QS 9000.
Hi-Tech Carbon began its TQM journey with its inception. Three important phases of TQM accomplishment had facilitated the process of building a quality culture in the organisation.
I. Quality Foundation (1998-99)

Laying Quality Foundation became the vital aspect of transforming the practices in the business. Work Environment and Waste
Elimination (WEWE) philosophy began to usher in a value enriched workplace. Adapting the truth There is a place for everything and everything is in its place, the people in the company internalised the need for clean environment around them. House-keeping standards were raised for both the plant and office, and highest compliance was achieved. Employee competition and individual awareness in 5S promotions were adopted, to promote quality at the foundation level. HTC took nearly two years, namely, 1998-99 to achieve this standard by benchmarking with world-class companies. During this phase, employees formed and developed Quality Circle consciousness as a problem-solving approach leading to significant improvements. Environmental Management System was strengthened and safety standards were remarkably improved to render the environment free from pollution.
II. Quality Promotion (1999-2001)

The TQM Council was involved in the promotion of Quality at group and individual levels. HTC had initiated and moved towards process-based operations and phased out the functional approach for organisational processes. Process re-engineering based on Plan, Do, Check and Act cycle was adopted during the promotion phase to impart progressive character and achieve improvement. The Unit achieved level 7 standards of International Quality Rating System (IQRS) and deployed effective policy management. These included: Policy Deployment Daily Work Management Visual Management World Class Manufacturing (WCM) People Development Continuous Improvement projects (CI) were identified by the employees and deployed with project outlook for achieving remarkable benefits and enrichment of values in the business. Managers stood as role-models for the rest of the employees to participate in WCM programmes, involving improvement in plant and labour productivity, eliminating breakdowns and improving quality of Carbon Black produced in the company for global acceptance. Deployment of analytical tools for improving process and product quality paid rich dividends in promoting quality in the the overall process.
59
Quality culture in HTC witnessed maturity in bringing about: Team Work Quality System Certification Customer Focus Customer Satisfaction Process Re-engineering
III. Quality Excellence: (2001-02)

Manufacturing process improvement and Just-in-Time (JIT) management paved the way for a lean approach in the way business was conducted overall. Lean culture was internalised by the employees in order to be competitive in the global market. Having been involved in promoting overall quality in the organisation, people, health and welfare were regarded as the most important criteria for sustained improvements in business. Employee motivation was regarded as critical to success. Employee motivation was created by: Initiating and deploying a framework for Kaizen Suggestion System (KSS), thereby involving every employee to contribute towards improvement and growth Brainstorming among the employees for free flow of ideas and providing project mission Enabling career development plan and multi-skill training programmes to support employee aspirations Providing welfare measures for living together in a serene ambience near the manufacturing location Product development plans and Failure Mode Effect Analysis (FMEA) processes facilitated technological improvements in the Burner Management System for producing precision oriented products and focusing on CB performance in tyre applications for higher mileage. Progressive culture propelled the people of the Unit to challenge the Deming Quality Control Award for Operations Business Unit in 2002. Significantly, the Unit won the coveted award - without assistance from an external consultant supported only by the Quality culture developed by 165 people themselves. Indeed, a remarkable performance in the industry, as most of the organisations had evolved excellence in quality with the help of consultants. HTC believed that Quality should be the focus in achieving long-term excellence for any recognition and winning the Deming Award represented the tip of the iceberg in performance for the company.

The evolution of Quality culture traced its genesis back to the fundamental belief and the commitment of the leader in building the team by leading them from the front. Company leadership and the TQM Apex body played a lead role in promoting the quality philosophy with zeal in the company. Be it Deming Examination or Quality improvement, the company leadership took part whole-heartedly, encouraging and motivating people to perform to their full potential. HTC believed in its policy of People are our number one asset and whole-heartedly engaged in their career development. People in HTC showed commitment and co-operation in quality promotion at every level. Kaizen Suggestion System (KSS) was a treasure for unfolding employees ideas for effective implementation in the company. Cross-functional interactions opened up a transparent environment among employees. Participative culture was the hallmark of employee involvement in every activity, thereby promoting team culture. Deming examiners appreciated the way shop-floor employees volunteered to make presentations on Kaizen and CI with enthusiasm.
Regular Improvements in Business Process

Improvement Input 1. Operation Review Daily Review of CpK for Product & Process Quality Daily Review of Training Schedules and Effectiveness Gains Witnessed Operational Benefits Remarkable improvements in Product and Process Quality and high gains in Customer Satisfaction
Elimination of Off-Spec manufacturing and improving On Time In Full (OTIF) performance in Delivery Management Effective implementation of Failure Mode Effect Analysis (FMEA) and Control Plan for manufacturing of Carbon Black Monthly review of Core and Sub-processes provided the organisation a lead direction in strengthening the process culture Daily Review of Quality Indicators helped the company improve the processes, achieve performance and set new benchmarks in the business operation
2.
Process Review
61
Improvement Input 3. Quality Management System
Gains Witnessed Accredited to Quality system with multiple certifications in one year Strengthened Customer Focus through Standard Operating Procedure (SOP) for building quality into business processes Plan, Do, Check and Act (PDCA) cycle was adopted by the people as a way of life for comprehensive understanding of processes and continuous improvements Quantum improvements in Process Quality were achieved in a short span of time Company used to spend a long duration on Plan and Review processes in order to impart ease in implementation and improvement phases Daily morning meetings were organised for information exchange among the employees immediately after physical fitness exercise Weekly shop floor meetings were conducted to understand the views of shop-floor employees for process implementation Conducting Mass Communication and Safety meetings, HRD Reviews and WCM meetings for conformity at the plant for achieving productivity standards, helped people work together to achieve the business objectives Stage-Gate approach developed for New Product Development had opened new avenues for product development New generation products offering higher mileage in tyre performance were rolled out using this approach
4.
Plan, Do, Check and Act (PDCA) Cycle
5.
Information Sharing
6.
New Product Development (NPD)
HTC had gradually moved away from a functional style of business operations and ushered in a process-driven approach to business modelling in order to be an effective quality organisation. Continuing improvement projects introduced people agility in innovative thinking and value maximisation.

Over the years HTC had been promoting the brand BIRLA CARBON and earned brand equity in the global market. Beginning in 1998 with an insignificant volume of CB exports, the company emerged as a very strong player in the Asia Pacific network of CB users.
Developing precision in quality and benchmarking in service were the hallmarks of attracting global attention. HTCs annual exports increased beyond US$ 38 million in 2004, giving it the status of a most reliable and quality supplier of CB to the user industry.
Technological edge
Knowledge management, Evaluation of Life Cycle Costing (LCC) and invoking Computation Fluid Dynamics (CFD) techniques through technological dimension led to integrating new design for manufacturing infrastructure. PDCA cycle of equipment and process analysis as well as introspective thinking brought out the nuances of cutting short the long cycle time, eliminating process waste and upgrading application performance from time to time. New Product Development was backed by strong R&D efforts put in by the Groups Aditya Birla Fundamental Research Institute (ABFRI).
The model provided a platform for: Policy deployment, involving vision, mission, company objectives, strategies, values and actions and promoted the right framework for implementation and alignment. Innovative approach had contributed to product and process development, focused improvement and customer satisfaction. In turn, it propelled the company to greater heights of quality performance by integrating minds of people together. Knowledge management, developing technological strength and harnessing resources for qualitative business performance in a quality way also immensely contributed to weaving an integrated framework for business growth.
63
Cost management in every walk of quality was the key to compete in the market. Against this backdrop, the plant location in Gummidipoondi stood as a competitive location for enabling lean manufacturing culture aimed at global product deliveries.
HTCs integrated cultural outlook in quality promotion and organisational commitment in encouraging employee participation impressed the examiners. Leadership direction and cultural assimilation were important facets in building quality in business, as observed by the examiners. Employees were involved wholeheartedly in Kaizen promotion and process improvements, enabling a learning environment for the development of people and teamwork, for robust practices in the company. New Product and Technology development paved the way for meeting emerging customer requirements for sustained business success and growth.
The Deming Award instilled a new sense of thinking in the minds of stakeholders. The stakeholders felt involved in the business with renewed feeling. Suppliers started appreciating the quality requirements and stretch efforts of the company to meet these requirements. They were proud to associate themselves with a Deming Prize winner. Customers too expressed their appreciation for such recognition and were enthused at HTC emerging with improved quality paradigms. Propelled by stakeholders support, HTC expanded its annual capacity by 40,000 metric tonnes, to serve customer requirements. Product Innovation, Quality Reliability and Cost Competitiveness formed the epicentre to serve the growing needs of the customers. HTC saw an opportunity in the environment for further growth and worked-out plans for implementation. Multi-skilled training imparted to people created cross-functional
opportunities for employees to work with improvement programmes. HTC had a long-term vision of becoming a global supplier. In keeping with this plan, the company worked with international tyre majors and other users for making inroads into the international arena. Global buyers are held in high esteem for their quality orientation, requiring HTC to achieve precision in product performance. HTCs global customer network is spread across Japan, Indonesia, Vietnam, Philippines, Malaysia, Singapore, Sri Lanka, Bangladesh and Myanmar in the East Asian Bloc and UAE, Saudi Arabia and Iran in West Asia. Innovative Quality packages in product deliveries and after sales service in responding to customer queries became the way of life for HTC. Reputed international tyre manufacturers and other players in the global markets prefer HTC products for their quality consciousness. The Deming Award changed the way of doing business in global markets to achieve maximum customer satisfaction.
Future plans
Acknowledging customer preference for HTCs products, the company is embarking on multiplying its capacity. HTC is planning a significant increase in its capacity within a short span of time to meet growing customer requirements. The Quality path is inevitable for HTC to sustain its competitive advantage in the market. Advanced training for people with development orientation, thrust on New Product Development, and state-of-the-art technology are on the cards for the company to help perform better in a competitive market. The company is planning to strengthen the lean manufacturing approach by efficiently managing its resources through Just-in-Time (JIT) and eliminating waste in the process. The company will continue to strengthen the TQM philosophy for promoting quality culture and customer delight, in the days to come. It believes that the Japan Quality Medal (JQM) would be the appropriate award to challenge in evaluating the companys strength in quality.
65
Contact for Information

BIRLA CELLULOSIC KHARACH
S V Kulkarni, Executive President Birla Cellulosic Birladham, Kharach, Kosamba RS District Bharuch Gujarat 394120, India Tel: +91 2646 270 001-5/301 Fax: +91 2646 270 010/310 E-mail: svkulkarni@adityabirla.com Website: www.birlaviscose.com
BRAKES INDIA LIMITED, FOUNDRY DIVISION

V Narasimhan, Executive Director (Foundry) Brakes India Limited, Foundry Division Sholinghur 631 102 Vellore District Tamil Nadu, India Tel: +91 4172 262 408 Fax: +91 4172 262 414 E-mail: narasimhan.v@brakesindia.co.in Website: www.brakesindia.com
HI-TECH CARBON GMPD

Shyam Sundar Rathi, Executive President Hi-Tech Carbon GMPD K-16, Phase II, SIPCOT Industrial Complex Gummidipoondi 601 201 Tiruvallur District Tamil Nadu, India Tel: +91 4119 289 233/236 Fax: +91 4119 223 116/129 E-mail: rathiss@adityabirla.com Website: www.hitechcarbon.com
MAHINDRA & MAHINDRA LIMITED, FARM EQUIPMENT SECTOR

K J Davasia, Executive Director & President Mahindra & Mahindra Limited, Farm Equipment Sector 3rd floor, Mahindra Towers Dr G M Bhosale Marg P K Kurne Chowk, Worli Mumbai 400018, India Tel: +91 22 2493 6466 Fax: +91 22 2496 2205 Email: davasia.k@mahindra.com Website: www.mahindra.com
RANE BRAKE LININGS LIMITED

S Sundarram, President Plot No 30, Ambattur Industrial Estate Ambattur, Chennai 600 058 Tamil Nadu, India Tel: +91 44 2625 0566 / 0766 / 1666 / 1766 Fax: +91 44 2625 8883 / 0759 Email: s.sundarram@rane.co.in Website: www.ranebrakelinings.com
SONA KOYO STEERING SYSTEMS LIMITED

Surinder Kapur, Chairman and Managing Director 8th Floor, DLF Square, Jacaranda Marg M-Block, DLF City, Phase-II, Gurgaon 122 002 Haryana, India Tel: +91 124 510 4641 / 44 Fax: +91 124 510 4645 E-mail: surinder.kapur@sonagroup.com Website: www.sonagroup.com
SUNDARAM BRAKE LININGS LIMITED

K Mahesh, Chairman and Managing Director MTH Road, Padi, Chennai 600 050 Tamil Nadu, India Tel: +91 44 2625 8111 / 8121 / 8521 / 8399 Fax: +91 44 2625 7572 E-mail: makmahesh@yahoo.com Website: www.tvsbrakelinings.com
SUNDARAM-CLAYTON LIMITED
Venu Srinivasan, Managing Director 8, Jayalakshmi Estates, Haddows Road Chennai 600 006 Tamil Nadu, India Tel: +91 44 2827 2233 Fax: +91 44 2825 7121 E-mail: vg@scl.co.in Website: www.sundaram-clayton.com
TVS MOTOR COMPANY LIMITED

Venu Srinivasan, Chairman & Managing Director Post Box No.4, Harita Krishnagiri District, Hosur 635 109 Tamil Nadu, India Tel: +91 04344 276 780 - 84 Fax: +91 04344 277 423 Website : www.tvsmotor.co.in
67
IBEF
INDIA BRAND EQUITY FOUNDATION
The India Brand Equity Foundation is a public-private partnership between the Ministry of Commerce, Government of India and the Confederation of Indian Industry. The Foundation's primary objective is to build positive economic perceptions of India globally. India Brand Equity Foundation c/o Confederation of Indian Industry 249-F Sector 18 Udyog Vihar Phase IV Gurgaon 122015 Haryana INDIA Tel +91 124 501 4087, 4060 - 67 Fax +91 124 501 3873 E-mail ajay.khanna@ciionline.org Web www.ibef.org

Deming Prize Winners

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Deming Prize Winners

Uploaded by

Copyright:

Available Formats

www.ibef.

INDIA BRAND EQUITY FOUNDATION

Deming Application Prize

Deming Quality Control Awards for Operations Business Units

Contact for Information

Deming Prize-The Criteria

SUNDARAM-CLAYTON LIMITED BRAKES DIVISION

About the company

Indias Deming Prize Winners

Success factors leading to recognition

Introduction phase (1987 to 1990)

Promotion phase (1990 to 1994)

Deployment phase (1994 to 1998)

Indias Deming Prize Winners

Leadership and employee participation

Strength as an organisation to attract overseas attention

Business excellence model

SCL believes in the principles of Total Quality Management (TQM).

SCL's understanding of TQM

Five pillars of TQM

Indias Deming Prize Winners

The Deming Prize recognition

Contribution to further growth/business and international recognition

Indias Deming Prize Winners

BRAKES INDIA LIMITED FOUNDRY DIVISION

Success factors leading to recognition

T otal Quality Management System

Indias Deming Prize Winners

Leadership and employee participation Leadership

Regular improvements in business processes

Indias Deming Prize Winners

Strength as an organisation to attract overseas attention

Business excellence model

BUSINESS EXCELLENCETECHNOLOGICAL LEADERSHIP

KEY BUSINESS ENABLERS

Quality System Management

Safety Health & Environment System Management

Values Empowerment Team Working Education & Training Employee Satisfaction

5S & 3 MU Energy Conservation

Change overtime Reduction J.I.T Material Flow Control O.E.E.

Internal Failure Rate External Failure Rate

Quality Assurance Diagram

CAE / CAM / CAD

Total Employee Involvement

Indias Deming Prize Winners

The Deming Prize recognition

Contribution to further growth/business and international recognition

MAHINDRA AND MAHINDRA LIMITED FARM EQUIPMENT SECTOR

About the company

Success factors leading to recognition

Evolution of Total Quality Management (TQM) System

Indias Deming Prize Winners

Leadership and employee participation

Regular improvements in business processes

Indias Deming Prize Winners

Strength as an organisation to attract overseas attention

Business excellence model

Indias Deming Prize Winners

The Deming Prize recognition

Contribution to further growth/business and international recognition

Business result related

Indias Deming Prize Winners