tqm dissemination and promotion · flow and no inventory. that was my grandfather’s dream. •...
TRANSCRIPT
11
TQM Dissemination
and Promotion
Venu Srinivasan
Chairman and Managing Director
Sundaram-Clayton & TVS Motor Company,
India
1
Sundaram-Clayton TVS Motor
22
TVS has evolved from a bus service company to a leading
Indian automotive group with over 60 companies
1911 1929 1961 1979 1984 2002
• Founded by
Late Shri. TV
Sundaram
Iyengar as a
Bus Service
• Started GM
dealership
• Started Auto
Component
Manufacturing
• Sundaram
Clayton and
other
companies
• Sundaram
Clayton
started
two-wheeler
business
• Ind-Suzuki – A
Joint venture
with Suzuki
• Emergence of
TVS Motor
company from
JV
TVS Group – 108 years of heritage
33
Learning from the Founder
Best GM dealer service
network in
30s-40s
100% trust of
customers &
employees
Perceive a value
worth $1 for a
price of 75 cents
100% first time
right service in
the cleanest
workshop
2 31
Proverbial Punctuality
Fair price during WW2
Customer perceived
value significantly
greater than the price
Trust Value Service
Ensured quality in
everything we did
Three elements
helped sustain the philosophy
44
My search for excellence
• During 1979, I took charge of SCL as the Managing
Director at the age of 27, on demise of my father.
• During my visits to western companies while studying, I saw
no ownership by employees as they were not treated as a
part of their family.
• In 1981, I visited Japan looking for partners to enter the
motorcycle business.
• My eyes were opened when I visited Suzuki, Honda and
Denso.
• I was astounded by the spirit of all the employees who
completely identified with the values of their companies.
55
My search for excellence
• I experienced cleanliness everywhere, discipline, single piece
flow and no inventory. That was my grandfather’s dream.
• Inspired by the learning from Japan, I started reading
textbooks translated in English on Japanese management
practices by Dr Ishikawa, Mr Taiichi Ohno, Dr. Shigeo Shingo,
Prof Yoji Akao, and Dr Hitoshi Kume.
• With this learning, I started practice of 5S, QCC at SCL.
• During this time, SCL faced a few business challenges.
66
Challenges faced at SCL
• Customer satisfaction, Quality and Discipline were diluted due
to closed market over 4 decades starting from 1950.
• During 1987 to 90, recession in commercial vehicle industry
resulted in significant drop in business revenue and profit.
• A long-term solution was needed to regain our culture, value
and heritage.
77
My inspiration for TQC
• Indian companies couldn’t avail guidance of Japanese
professors to initiate TQC.
• Mr Rajiv Gandhi, the then Prime Minister of India signed
a bilateral agreement with Govt of Japan to support India
for promoting quality.
• I attended the first National conference for top
management during April 1986 on TQC, addressed by
Dr Ishikawa and Mr K Matsuda.
• Conference concluded with the formation of the National
committee on Quality under the leadership of
Dr V Krishnamurthy and Mr Janak Mehta as Member
Secretary.
88
My inspiration for TQC
• During April 1988, CII formed the TQC division with the
membership of 23 prominent member organizations. SCL was
one of the 23 companies.
• We nominated a few senior managers for the first TQC program
in English by JUSE in Japan.
• Mr Janak Mehta was a full-time advisor for setting up TQC
division in CII.
99
I believed that Japanese TQC could help me address the business
challenges at SCL.
TQC
Respectfor
humanityCustomer focus
System orientation for effectiveness
TVS way of life
Excellence in customer service,
satisfaction & trust
Excellence indaily work
5 S,Productivity &
Technical excellence
Employees total
commitment
Chose TQC to regain the values, culture and heritage
Employee involvement
1010
Learning TQC from JUSE mentors
• In 1991, I requested JUSE to assign TQC mentors for
guiding SCL
• Prof Kurahara agreed to visit SCL for a day during one of
his visits to India. Since Prof was available only on a
Sunday, our company made Sunday as a working day.
• Prof was very much impressed with our commitment and
agreed to guide us on TQC.
• He conducted training programs on policy management.
• During the same time, JUSE assigned Prof Washio to
guide our company on quality management process and
new product development.
• Later Prof Tsuda commenced guiding SCL when Prof
Kurahara became unwell.
1111
Journey of SCL – Brakes Division (Now WABCO)
Introduction phase : 1987-90
• Need for change seminar, commenced daily sunrise meeting, and in-
house journal TQC news.
• Visible symbols of change – Common uniform, common canteen,
open office, family sports day and family founder’s day.
Goal congruence phase : 1990-93
• Training by JUSE counselor on daily management, policy
management, MPCP, VCS.
• Vision, mission and Schedule A and Schedule B audtis.
• Manufacturing reengineering from process layout to product layout.
1212
Journey of SCL – Brakes Division (Now WABCO)
Deployment phase: 1994-98
• Establishing cellular manufacturing with single piece flow.
• Establishing operation standards, QCPC, SPC, supplier management.
Continuous improvement & Technology phase :1999 onwards
• Product and technology plan, electronic control systems and
information technology
• Value stream mapping, TPM and ISO 14001.
1313
Effect of TQM - Sundaram-Clayton
• Sundaram-Clayton achieved excellence in quality level and
business growth during 1998 – 2002.
UOM
M
Introduction
phase
Goal
congruence
phase
Deployment
Phase
Technology
development
phase
1990 1993 1998 2002
New products speed Launch per
year1 1 4 15
New product sales to
the total sales
%- 4 6 27
Warranty complaints
for all products
PPM10000 3460 1689 1020
Sales revenue Bn INR 0.51 0.78 1.3 1.7
Profit before tax Bn INR 0.06 0.15 0.16 0.19
• Sundaram-Clayton was the first company to win Deming prize
in 1998 and Japan Quality Medal in 2002.
• This experience was applied to a large and complex business
- TVS Motor
1414
Challenges faced at TVS Motor
• During 1984, established JV with Suzuki and launched first Indo-
Japanese motorcycle in India.
• Business started well, Lost share as other Japanese players entered
the market.
• Profit declined and there was a major crisis and fight for survival.
• We aggressively reduced all costs and created profit by top down
approach.
• In order to sustainably grow, we wanted a process driven TQM
approach.
1515
Planning phase
Planning phase
(1990-95)
Promotion phase
(1995–99)
Deployment phase
(1999-05)
Setback phase
(2005-10)
Resurgentphase
(post 2010)
• Initiated cultural change – Communication by
President & MD
• Nomination of Sr managers for TQM seminars
• Training on 5S and QC story and initiated TEI
• Learnt policy management and initiated
deployment
• Introduced new product development process
1616
Promotion phase
Planning phase
(1990-95)
Promotion phase
(1995–99)
Deployment phase
(1999–05)
Setback phase
(2005-10)
Resurgentphase
(post 2010)
• Introduced customer satisfaction survey and improved product quality
• Improved new product development process to achieve Target quality
• Understood segmentation and developed variants for three segments
• Reduced manufacturing lead time
• Developed a scooter with 4S to acquire capability to develop 4S engines independently
Samurai“No problem Bike”
Max R“Rural Bike”
Shogun“Power Bike”
1717
Deployment phase
Planning phase
(1990-95)
Setback phase
(2005-10)
Resurgentphase
(post 2010)
• Monthly TQC council for TQC permeation and
Daily work management
• Improved new product delivery with cross-
functional teams
• Improved employees’ competency for product
engineering and technology
• Developed and launched first 4S motorcycles
with TVS R&D team
Deployment phase
(1999–05)
Promotion phase
(1995–99)
1818
Setback phase
Setback phase
(2005-10)
Planning phase
(1990-95)
Resurgentphase
(post 2010)
• Post launch, Victor lost ground due to poor
reliability and durability
• Continued to have failures in other new
products as well
• Product concepts poorly defined
• Inadequate response to customer complaints in
the field
• Deep reflections on the root causes and
initiated countermeasures
Promotion phase
(1995–99)
Deployment phase
(1999–05)
• Deployment of new technology without
adequate proving
• Inadequate understanding of requirements of
Target customers and usage conditions
• Realized need to learn the “know-why” for
improving durability and reliability
• Internal succession pipeline was weak
• Lack of congruence to TQM by the senior
managers hired laterally
Problems: Root causes:
1919
Setback phase
Setback phase
(2005-10)
Planning phase
(1990-95)
Resurgentphase
(post 2010)
• Loss of market share and profitability
• Low morale of employees leading to high attrition
• Low morale of dealerships due to declining sales and viability
• Loss of confidence of suppliers due to declining volumes
Promotion phase
(1995–99)
Deployment phase
(1999–05)
Effects:
Declining performance leading to crisis
2020
Resurgent phase
Resurgentphase
(post 2010)
Planning phase
(1990-95)
• Implemented holistic approach towards quality covering Design, Manufacturing, Supplier and
Service quality
• Introduced a process for deeper understanding of customer requirements and usage
conditions including marketing actions for new products
• Strengthened the design verification and validation processes.
• Evolved TVS way incorporating learning from TQC journey and conducted training for all
managers in the company.
• Special focus on customer after sales service, sales and service process improvement
in international markets
• Systematic implementation of HR management to provide robust leadership pipeline
• Systematic competency development processes to develop know-how and know-why for
new products.
Promotion phase
(1995–99)
Deployment phase
(1999–05)
Setback phase
(2005-10)
Actions implemented:
2121
Effects of TQM – TVS Motor
UOM
M
Planning
phase
Promotion
Phase
Deployment
Phase
Setback
Phase
Resurgent
phase
1995 1999 2005 2010 2014 2018
New products speed Products
launched
per year
1 1 1 1 3 6
New product sales to the
total sales
%10 8 18 12 25 29
Warranty complaints for all
products
Defects /
100
vehicle
40 30 15 11 3 1.5
Sales volume Nos in
mn0.4 0.8 1.3 1.5 2.5 3.8
Market share % 13 18 18 12 13 15
Global market share % - - - - 4 6
Profit before tax Indexed 100 200 280 150 800 1575
No 1 Position in 4th time in a row on Initial
Quality, APEAL Quality and Service Quality by
JDP survey
2222
Recognition for TQM journey
• SCL was awarded Deming Prize in 1998. and
Japan Quality Medal in 2002.
• SCL was the first company in India and 4th
company outside Japan to receive coveted
Deming Prize.
• TVS Motor was awarded Deming Prize in
2002.
2323
Institutionalizing TQM – ‘TVS Way’
Core Values Guiding Principles
• Trust
• Value
• Exactness
• Passion for
customers
• Customer focus
• Quality first
• Respect for people
• Focus on people
for results
• Fact control
• SDCA/PDCA
• Recurrence
prevention
Management
Processes
Business
Processes
• Daily work
Management
• Policy
Management
• Continual
Improvement
• People
development
• Information
Technology
• Production
System
• Product
Development
System
• Retail System
• Evolved ‘TVS Way’ by converge our learning TPM, lean, QMS under
the umbrella of TQM
2424
Personal learning from TQM
The spirit of TQM is to
• Share and propagate the learnings.
• Create prosperity for the industry and society.
• Based on this spirit, started sharing our TQM journey to
our group companies, many other companies in India.
• Many of our senior managers shared their experiences in
quality management, new product development,
manufacturing, supplier engagement and guided many
companies.
2525
3 more companies are making progress towards Deming prize
Support to Industry - TQM in group companies
Sundaram
Fasteners
[2018 DP]
Turbo Energy
TVS Tyres
(Initiated TQM
journey)
Wheels IndiaSundaram Brake
Linings [2001 DAP]
Brakes India
[2003 DAP]
Lucas-TVS India
[2004 DAP,
2012 DGP]
Delphi TVS
(Initiated TQM
Journey)
Sundaram-Clayton
[1998 DAP,
2002 JQM]
Sundaram Auto
Components
(Initiated TQM journey)
TVS Motor
[2002 DAP]
Other CompaniesSundaram-Clayton
group of companies
TVS Group
2626
TQM dissemination through CII
• On receiving Deming Prize for SCL, shared the journey in CII -
Quality Summit.
• CII initiated TQM cluster for 18 mid size companies with Maruti,
mentored by Prof Tsuda.
• Many of these companies have won the Deming Prize.
• Mrs Sarita Nagpal played an active role as one of the CII-TQM
counselors in guiding the TQM cluster companies.
• More than 100 companies have visited SCL and TVS M to study
the best practices of TQM in this journey.
2727
TQM dissemination through CII
• As the President of CII and Chairman of the National Committee for
Quality, played an active role in accelerating TQM promotion.
• Organization of 6 regional counsellors of TQM and each one
mentoring 6 companies towards TQM permeation.
• Annual Quality Summit is organized to share best practices of TQM
and their success stories.
• 100,000 practicing managers were trained on TQM methods.
• 36 Indian companies won Deming Prize and 7 companies won
Deming Grand Prize with India becoming 2nd largest country to
have Deming prize winners.
2828
TQM dissemination through CII
• VLFM (Visionary Leaders for Manufacturing) was instituted
with a vision to take Indian manufacturing to the world. This
program is a transformation mission to shape senior managers
into industry visionary leaders of tomorrow.
• Started under the guidance of Prof Shoji Shiba through JICA in
the year 2007.
• As chairman of VLFM governing council during 2015 -2018, we
developed more than 300 managers as leaders for tomorrow.
• Mrs Sarita Nagpal, along with senior leaders of Godrej, Sona
and Anand group have played a key role in shaping this
program.
• In my companies, more than 50 managers have been trained
under this transformation journey.
2929
TQM dissemination through ACMA
• Progress of CII cluster for TQM promotion inspired ACMA.
• ACMA cluster established to create community for learning and to
implement TQM which will provide
• Customer satisfaction and quality focus
• 5S, daily work management
• Total Employee Involvement for continuous improvement
• Mr C Narasimhan, then SCL President led one of the OEM’s
supplier council and ACMA supplier cluster. Continues to guide
voluntarily many companies on TQM, TPS.
• Mr Selvamani, former R&D head of SCL, post retirement was
guiding many companies on new product development.
• Started with 10 companies cluster and today with more than 400
companies following TQM practices.
3030
TVS Institute for Quality and Leadership (IQL)
• Established in 2011 to develop current and future capabilities of
employees in our companies, suppliers and dealers.
• IQL offers program on the following areas - Cultural capabilities,
Process/Collective capabilities, Support Business Strategies,
Corporate Social Responsibility
• Dr Kovaichelvan has steered in establishing IQL and he is guiding
many educational institutions for enhancing quality of engineering
education and establishing community polytechnic for
agriprenurership.
• IQL is certified by Global Council of Corporate Universities.
• On an average 300 employees get trained at IQL everyday.
Exclusive facility for training and building talent for future at TVS
3131
Transfer of Kaizen culture to families and community
Home Kaizen was initiated to spread continuous improvement at
employee’s home and their family members
• Family members of employees participate in
Kaizen program focusing on
• Energy conservation
• Safety at home
• Education for children
• Waste elimination
• 40% of employees’ families participate in this
program.
• More than 1000 kaizens are being implemented
every year.
3232
Benefits of Home Kaizen
• Over years, Home
kaizen ideas are being
horizontally deployed
across families of TVS
employee and other
families
• This has resulted in
huge benefits for the
society.
• On an average 2Mn
Liters of water being
saved every year
through water
conservation.
3333
Promotion of TQM in Society – Through SST
• Established Srinivasan Services Trust (SST) in 1996
to empower people in villages for sustainable self
development.
• Adopted TQM principles for community development.
• SST primarily helps in making the villages identify and
overcome issues towards their livelihood.
• SST activities focus on – Economic development,
Health, Education, Infrastructure & Environment.
• Covering 5000 villages in five states across India,
reaching 0.7 million rural families and 3.1 million
people.
3434
Impact to society through SST
• 74% of SST villages have safe drinking
water.
• 6.45bn INR income generated thru Self
Help Groups.
• 175,250 hectares covered under
afforestation.
1993 – Forest cover 2018 – Forest cover
Santhavasal Santhavasal
3535
Dissemination of SST CSR model to other companies
• Village Buddha is to develop and permeate
systematic and organized activities towards
community development by leveraging the CSR
experience of companies like TVS and Godrej.
• Village Buddha was initiated by CII at TVS IQL
under the guidance of Prof Shoji Shiba.
• Village Buddha program was inaugurated in 2014
by Rural development Minister for Karnataka State.
3636
Dissemination of SST CSR model to other companies
• Developed 5 principles and 15 tools for village development.
• 5 Programs, 20 companies and more than 100 senior
management team of participating organizations went through
2500 man-days of training to acquire the skill set of systematic
village development.
• Major companies that have nominated in this journey are Bosch,
Godrej, TVS Tyres, and Anand group.
3737
Contribution to sustainable development goals
• 93% of recyclability of existing products.
• 75% reduction in Direct green house emission.
• Zero discharge and Zero land fill for more than a decade.
• Place for 300 species in the plant premises.
• 53% reduction in energy intensity of our vehicles in 5 years.
• Renewable energy share of 70%.
A Pond inside campus –Place for migratory birds
3838
Contribution to the Global arena
• Industrial professor at the University of Warwick since 2008.
• Professor of Practice – Indian Institute of Technology, Madras -
Offering a nine credit open elective course on ‘Business excellence and
Quality management’ at IIT, Madras which is well rated by the students.
• Lecture at Asian Network for Quality during 2004 and 2012.
• Pre-conference seminar of JUSE International Quality Circle
Convention in 2014.
• Promotion of TQM at our plants in Indonesia and in the USA.
• TQM way of working is being promoted at International distributor
assembly plants at Srilanka, Bangladesh, Nigeria, Kenya, Ethiopia and
Latin American countries covering more than1000 people.
3939
Dedicating the accolades to all Mentors, Customers, Employees
• Indian Society for Quality has recognized the contribution to the
quality movement and awarded the Jamsetji Tata Lifetime
Achievement Award in 2004.
• University of Warwick has recognized me with Doctor of
Science in the year 2004.
• IIT Kharagpur, India recognized me with Doctor of Science in
the year 2009.
• I was recognized by Asia Network for Quality and awarded with
Ishikawa- Kano award in 2012 for my contribution to the theory
and practice of quality management across Indian industries .
• Purdue University, USA honored me with Doctor of
Management in the year 2014.
4040
Key lessons from my journey
• Institutionalize TQM as a way of life.
• Sustainability across entire chain of suppliers, dealers,
stakeholders and community for future proofing.
• Sharing and spreading the spirit of TQM and create prosperity in
Industry and society.
• Rural development in the country which will help future
generations to lead healthy and prosperous lives.