N E W S L E T T E R

uality Newsuality NewsFEBRUARY 2012

Inside�

CII - BCG Report: At a Glance

The India Data Crunch Report 2011 - Executive Summary

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Standards and Conformity Assessment – the cutting edge of competitiveness

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CII-IQ helps CEIL in getting ISO accreditation

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Lean Conclave 2012, Chennai

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18th Kaizen Conference cum Competition

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CII-EXIM Bank Awards for BusinessExcellence-2012

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1st National Conclave for Laboratories

CII-IQ 2012 Training Calender

Activities & Programmes Conducted during January

Forthcoming Programmes

Contact Details

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CII-IQ supported companies winners of JIPM TPM Award, 2011

PROGRAMMESCONDUCTED

CII-IQ TRAINING CALENDAR

CII-IQSERVICES

FORTHCOMINGPROGRAMMES

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Chairman’s deskfrom the

Confederation of Indian Industry

We are also happy to announce the winners of the 2011 JIPM

TPM Award Winners in this newsletter. It is a great privilege

and honour for the Indian Industry to cross the milestone of

201 awards and being the leading country outside Japan.

While the first 201 awards took 21 years, we are sure that with

TPM picking up in the last few years, the next milestone of 500

Awards should be crossed in much lesser time.

For the first time, CII Institute of Quality, designed and

organized the Lean Conclave 2012 which was a great success.

Many leading companies such as Toyota Kirloskar Auto Parts

Ltd, Bajaj Auto Ltd, DELL India (P) Ltd, Ford India Ltd,

Mahindra & Mahindra (FES division), Tata Motors Ltd came

together on one platform to share their success through the

lean journey. With this initiation, CII-IQ is going to go firm on

providing consulting and training services on Lean

Management thereby supporting companies in their journey

of competitiveness building through the Lean management

methodology.

Road Safety Initiative is CII-IQs new baby. The expert team

from CII- IQ has been working with companies to make Road

Safety Initiative a Management System rather than just an

awareness drive. This is an initiative which we urge all

companies to consider seriously to make our roads a safer

place.

The continuing market instabilities and the inter-

dependencies in a networked world have once again brought

the practice of Risk Management to the foreground. The

recently published ISO 31000 Standard and the British

Standards Institute’s BS 31100 are aimed to encourage

organizations to adopt a risk based approach as underlying to

their various business processes. The criticality of the subject

prompted CII-IQ and British Standards Institution (India) to

jointly organize a 4 Seminar series “The Imperative of Risk

Management in Turbulent Times” which would greatly assist

Indian managers to master the challenge of Risk Management

and help them incubate resilience to anticipate the

unexpected, prepare to deal with uncertainties and convert

adversities into opportunities. While the first two Seminars in

New Delhi and Mumbai were well received by industry,

Bangalore and Kolkata are to follow.

The advent of technical regulation to world trade has given

rise to the emergence of accreditation systems and voluntary

conformity assessment standards with the need for reliable

test and calibration results. Though India has over 2000

accredited laboratories, the expectations are increasing,

presenting new challenges.

CII-IQ and National Accreditation Board for Testing and

Calibration Laboratories (NABL) have joined hands in

organizing the First National Conclave for Laboratories in

India. It will help create a common platform to share, discuss

and evolve policy on issues relating to testing, calibration and

laboratory management practices. It is expected to open

constructive dialogue between Accreditation Bodies,

Regulators, Certifiers and Laboratories to evolve a road map

for testing and calibration services to discover new business

opportunities for Indian laboratories. Top leadership from the

Scientific community, Regulatory bodies, Conformity

assessment bodies, laboratories will speak at the conclave.

The recent reports indicate that the Business Confidence

Index of CEOs in India has improved Q-o-Q, suggesting

optimism among India Inc. While business confidence has

improved, still there are challenges for the businesses in view

of global economic uncertainties. Hence, there is a crying

need for businesses to develop processes and practices to

deal with such situations for sustainable performance.

The Excellence Model is a robust, comprehensive and non-

prescriptive business management tool. The year 2012 has

begun with an invitation for participating in the “CII-EXIM

Bank Award for Business Excellence”. Participating in this

rigorous assessment process, based on EFQM Excellence

Framework, helps Organisations to get a holistic external

perspective by comparing with Best-in-Class organisations.

We encourage Organisations to adopt this framework and

participate in the Award process to receive a feedback on the

maturity of its processes and performance and use the

outcome to develop improvement strategies. New categories

under the BE Award will be Healthcare,Infrastructure, IT,

Retail and FMCG. Sectors which will be given enhanced focus

under the CII-EXIM Bank Award for Business Excellence

include Infrastructure, Retail and FMCG. The BE Club is being

launched shortly and the details of the same are available with

the secretariat.

Education Vertical continued with its training programmes for

schools at Chandigarh and In-house programme for BR

Ambedkar Institute of Technology at Port Blair. A Compendium

of Education excellence Initiatives will be released by end

April. CII-IQ has been identified partner to improve the Quality

of School Education in Andaman Nicobar Islands and the MoU

will be signed shortly.

CII has a group of counsellors who are passionate about Quality and Excellence . IQ strives to

address people and organizations about continuous improvement through Business Excellence,

TPM, Lean, Six Sigma, Road Safety, Quality Management System, Metrology, Laboratory, Risk

Management and Education Excellence.

Regards

N KUMAR

services: Business Excellence, Standards &Conformity Assessment, TPM, Lean, Road Safety and Education.

Going forward, this year CII-IQ will also haveBusiness Excellence & TPM Best PracticesMissions to Germany and Japan during May andAugust. We will also undertake a CustomerSatisfaction Survey in March where we will reachout to several of our customers to evaluate ourservices and do a market research on the needs ofIndustry. The eleventh CII-IQ Anniversary Day will be celebrated along with the National BusinessExcellence Conclave-Accelerating OrganizationalImprovement through Business ExcellenceApproaches on 9th May at Bangalore. Membersmay contact me or C N Sinha, Head, CorporateCommunications, CII-IQ for any assistance.

We have showcased the latest CII-BCG Report on“The Tiger Roars: an in-depth analysis on how abillion plus people consume” predicting theconsumption patterns in India which may be ofinterest to our readers. We will soon be bringingmore reports and research papers for ourreadership in the months to come.

Companies who wish to share their success storiesin the area of quality and excellence, may pleasesend the same to C N Sinha, Head, CorporateCommunications, CII-IQ or me. For moreinformation on CII-IQ and what we do, please see our website

Greeta Varughese

Senior Director & Head - Institute of Quality

www.cii-iq.in

IQ Headquartered in Bangalore forthe last 11 years supports the largemembership of CII in India andalso in other countries. The CIIInstitute of Quality has seen a step-up of activities across its variousverticals in its Consulting & Training

uality Newsuality NewsConfederation of Indian Industry

Standards and Conformity Assessment – the cutting edge of competitiveness

byAnupam Kaul, Principal Counsellor, CII-IQ

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Standardization plays an important role in upgrading products and services, sustenanceof quality and technological advancement in manufacturing and service sectors.Standards are an integral part of the complex network of knowledge flow that furtherstechnology development and setting of international benchmarks. Standards are a formof embodied technical knowledge accessible to all types of business that enables moreeffective product and process development. They promote and enable the diffusion of technology in a form that is readily assimilated by organizations with the complementarycapabilities to take up and use the new methods. Standards therefore constitute one ofthe important foundations for technological inputs in manufacturing as well as services, and also reflect what is state-of-the-art, reasons why they are accorded high importanceby the policy planners in the developed world. Increasingly standards are being pushedhigher up the technology ladder, with a clear strategy to give market advantage totechnology leaders (companies, economies).

Standardization contributes not only to international trade and market access but also tothe basic infrastructure that underpins society, including health and environment.Standards are either enforced by law (technical regulations) or driven by market demand(voluntary standards). The former is the domain of the government and as per TBTAgreement; member nations are free to impose technical regulations on grounds ofnational security, deceptive trade practices, health, safety and environment.

The last two decades have seen the emergence of standards from traditional productspecifications, technical codes and classifications, to management aspects creatingdatums for organizational behaviour in areas as diverse as quality, environment,employee’s health and safety, social accountability, risk, supply chain management andsecurity, information management and security, financial management and economics,and several others. The modern imperatives drive organizations to apportion interest andeffort in meeting these sociological expectations (quickly transforming into obligations)juxtaposing them with the technical aspects of business. Standards create thereferences for each of the above and to prove adherence, extensive networks haveemerged comprising conformity assessment bodies like the certification bodies,inspection bodies, and laboratories, that go on to evaluate organizations on the productsand services that they produce as well as the systems they adopt and based onevaluation, certify them. Further, accreditation bodies and their international governingbodies close the loop of the global supply chain in the assurance business byaccreditation of the conformity assessment bodies on one hand and setting up mutualacceptance systems at a higher level to enable movement of products, services andpeople across markets.

For more than two decades Confederation of Indian Industry has been on the forefront ofstandardization through regular and active participation in international as well asdomestic standards making activities. The TQM division of CII played a stellar role inhelping Indian industry adopt and absorb world class quality management standards, thatformed the backbone of the spectacular growth of the auto component, engineering andIT sectors. Both CII members and Counsellors of CII Institute of Quality work together intaking industry and national positions on the Standards under development, a factrecognized by the International Organization for Standardization (ISO), when it invited CIIto host a session on industry standardization during the recently held ISO GeneralMeeting in New Delhi.

CII has constantly engaged with the leading Standards bodies the world over – ISO,ANSI, BSI and at the national level BIS, in creating platforms for sharing information andencourage debate on leveraging them for competitive advantage.

CII Role

Though Risk management has been in practice for long, its need is being felt even more due to market instabilities and the inter-dependencies in a networked world. The twindownturn of the global economy in quick succession, theincredible downgrading of the US, monetary deficits ofseveral European nations hovering on brinks of bankruptcy,the uncertainty around the fate of Kyoto Protocol, spurt indollar demand, the wild swings in oil and gold prices, andnatural turbulences such as the Iceland ash and JapaneseTsunami disrupting businesses world-wide, all in a span of 3-4 years, have driven unprecedented volatility andturbulences.

Hence, formal models to deal with risks on an organizedbasis have become necessary. The old order of gradualchange is giving way to dealing with sudden shocksheralding the possible decimation of long term forecastingand the acceptance of living on the edge as the newcorporate mantra for survival where flexibility and agilitywould be survival attributes. The recently published ISO31000 Standard captures all elements that constitute aholistic framework for identifying and managing enterprisewide risks, encouraging organizations to adopt a risk basedapproach in everything they do. The British StandardsInstitute’s BS 31100 which is a code of practice, complimentsISO 31000 and also gives additional guidance.

To create further national awareness on this critical subject,CII Institute of Quality and British Standards Institution(India) are jointly organizing a 4 Seminar series which wouldgreatly assist Indian managers to master these twinchallenges, which operate both at strategic and operational level under volatile and turbulent times and help themincubate resilience to anticipate the unexpected, prepare todeal with uncertainties and convert adversities intoopportunities. The first two Seminars took place in New Delhi(31 Jan) and Mumbai (13 Feb). The next two are slated on 24Feb at Bangalore & 15 March at Kolkata.

CII-IQ organises Seminars on

“The Imperative of Risk Management in Turbulent Times”based on ISO 31000

With a view to bring sharper focus on the increasing role being played by Standards and conformity assessment practices in overcoming and facilitatingtrade barriers, the CII IQ has set up the ‘Task Force for Standards and ConformityAssessment in Trade’ (SCAT) with the vision of developing of a matureeconomic culture where national standardization and conformity assessment policies and activities leverage India’s emergence as the world’s preferredsupplier of products and services.

Under the purview of SCAT, CII IQ shall take up standardization work as well as determine policy for influencing technical regulations. Beginning lastyear, a campaign to promote awareness on Standards and technical regulations in the Chemicals sector was launched. CII brought in ECHA(EuropeanChemical Agency) to talk about the European REACH regulations that have started to impact virtually all exports to Europe. Parallely, a background policy paper for a REACH like Regulation in India has been prepared and submitted to Union Ministry of Chemicals and Fertilizers. To cover the interestof the IT sector, a CII nominee became the convenor for the Development of ISO Standard on Outsourcing which will impact IT and ITES off-shoringbusinesses in times to come.

As a further measure to consolidate the standardization effort, CII IQ will shortly sign a MOU with QCI for development of industry lead standards andtheir certification.

NEWS LETTER FEBRUARY 2012

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CII Institute of Quality helps CEIL in getting ISO accreditation

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Certification Engineers International Ltd, a wholly owned subsidiary ofEngineers India Ltd was recently conferred with ISO 17020accreditation for its Inspection Services. CII Institute of Qualityprovided counseling support for this prestigious accreditation awardfrom the NationalAccreditation Board for Certification Bodies.

CEIL is one of the highly rated inspection bodies in the country and is engaged in a vast variety of technical scopes of operations including oiland gas and offshore installations. CII IQ support ensured that theaccreditation was granted for the entire scope, one of the largest in thecountry.

Accreditation as an inspection body entails a complete re-haul of themanagement systems, with stringent requirements for impartialoperations and competency of the inspection staff, besides a deepunderstanding of the incumbent liabilities that accrue from certificationof the inspected material.

ISO 17020 accreditation means, any product inspected and certified byCEIL gets acceptance in global markets. CII Institute of Quality is theonly body in the country offering training and counseling support tocertification and inspection bodies, whose role has emerged strongly inenhancing competitive edge of Indian industry through reliable productcertifications for domestic and international markets.

Interview with Mr MVK Kumar, CEO, CEIL

Q. a) What is the significance of accreditationas per ISO Standards to conformityassessment bodies in India?Ans : Accreditation of conformity assessmentbodies as per ISO Standards builds confidence inthe market place. It is important for services / products tested in India tobe accepted internationally without the need for additional testing.Increasingly, accreditation is the means of achieving this.

Q. b) How much will the accreditation help CEIL in its businesspromotion and image / credibility?Ans : Achieving accreditation to ISO 17020 has not only enabledCEIL to become an accredited Inspection Body in India but hasleveraged it to become at par with accredited Inspection Bodiesinternationally. This accreditation is already helping CEIL in enhancingdomestic business in identified sectors. It shall also enable us to tapinternational projects where accreditation is often a prerequisite foreligibility.

Q. c) How will the accreditation benefit CEIL in terms of internalcapability?Ans : The key verticals of this accreditation viz. Independence,Impartiality & Competence is helping CEIL to develop and sustain highstandards of performance. It also infuses a sense of pride in CEILpersonnel.

Q. d) What will be your message to other inspection bodies,considering the sensitivity of the inspection activity to givecredible results?Ans : Taking in Indian context, I strongly feel that Inspection Bodiesplay a key role in ensuring that end products are safe, maintain highquality standards and comply to statutory requirements. Hencefundamentals of ISO 17020 should be adhered to not only in words butspirit.

Q. e) How would you rate the counseling support provided by CIIin achieving accreditation to ISO 17020?Ans : CEIL had a wonderful experience in being associated with CIIas it could utilize its domain expertise in right conceptualization andefficient implementation of ISO 17020.

Standards on ConformityAssessment

While standards constitute the technical reference for the quality ofmanufactured products and services, their implementation ensures theactual quality of products reaching domestic and overseas buyers andconsumers. Almost all international trade relies on some form ofcertification or conformity assessment. Of late even nationalRegulators / government agencies have started relying on third partyconformity assessment to supplement regulatory enforcement. Thusthere is going to be an expansion of conformity assessment business inall developing countries to support regulation as well as voluntaryinitiatives.

CII institute of Quality has taken the lead in aiding responsibleexpansion and development of conformity assessment practices inIndia. Joining hands with the Quality Council of India and the National Accreditation Board for laboratories, which together oversee majority ofthe conformity assessment work in India through accreditationschemes, CII has emerged as the only body in India that provides highquality training and counselling services to certification, inspectionbodies and laboratories. This role has been further enlarged by active participation in the development of International and nationalStandards on accreditation and conformity assessment. This authorOfficial is member of the National Mirror Committee for ConformityAssessment Standards and also its convenor for the revision of ISOAccreditation Standard for Inspection Bodies.

Services of the Standards group

CII IQ organizes training programmes for the industry on qualitymanagement. These include Lead Auditors course, Lead AssessorsCourse on Quality Management, Programme for Strengthening MR

Skills, Trainings on Public Service delivery, Internal Auditorsprogramme, programmes on Laboratory Quality Management,Uncertainty of Measurement etc. Each of these is backed bycounseling services to industry as well as government organizations.

CII IQ has re-launched its laboratory and metrology portfolio bydeveloping an understanding with the National Accreditation Board forLaboratories under which CII IQ will organize India wide awarenessprogrammes on the benefits of accreditation to laboratories of the CIImember companies. The entire campaign will be supported by NABL.CII IQ has launched training services in the field of medical laboratoriesand will shortly be launching programmes on Proficiency Testing.

CII IQ provides training on the Accreditation Standards in closecooperation with the Quality Council of India. Following up on thetraining, CII IQ is engaged in a number of counselling assignments toprepare Indian conformity assessment bodies gain accreditation onInternational Standards, both to the private as well as GovernmentSector.

Some of the notable clients of the Standards Group in the recent pastare the CBEC, RBI, FSSAI,CEIL, Export Inspection Council, SAIL,BHEL, Siemens, Reliance Power.

The current impetus is on promoting the ISO Standards on RiskManagement and Business Continuity Management, to enableorganizations develop resilience, flexibility and agility, the currentimperatives for successful business models.

NEWS LETTER FEBRUARY 2012

( For more details please contact :

+91 9899690908 or )anupam.kaul@cii.in

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Lean Conclave 201223 – 24 January, Chennai

Speakers from JMAC, Wabco India Ltd, Ford India, Tafe Ltd, Brakes India, Toyota Kirloskar Auto Parts Ltd., Sona Koyo Steering Systems, Hyundai Motors, Mahindra & Mahindra FES, Nokia India, Dell India, Bajaj Auto, Tata Motors, IITChennai and CII-IQ addressed over 86 delegates from 43 organisations

Lean Conclave-2012, with the theme “Shaping The Future Towards Becoming Lean” was a two day event designed for mid to upper level managers to help them understand, how to create management systems and an infrastructure that make problems visible and engage team members in a rigorous problem solving and continuous improvement process.

Mr Kaniappan, Whole Time Director - Wabco India Ltd., delivering keynote address

Mr Kumaradevan, AVP-Operations, TAFE and Mr P Senthil, VP-Vehicle Operations, Ford India addressing Q&A session

Mr Atsushi Terada sharing his thoughts on safeguarding against recession during panel

discussion

Presentation on Hoshin Kanri by Mr Rajdeepak Chatterjee of Mahindra & Mahindra (FES)

The Conclave through its technical sessions focused and deliberated on key issues of sustaining the lean journey by implementing right tools at the right time and insights into innovative ways to enhance lean journey towards becoming Lean and Agile.

The Lean Conclave 2012, besides increasing consciousness, generated enthusiasm among all the participants as they assimilated learnings from leading Lean practitioners and experts who have faced the same challenges and problems and the Lean way of countermeasures.

NEWS LETTER FEBRUARY 2012

For more details please contact :Mr. N Yogesh, +91 98807 10153;

&

Ms. Mamta Rai, +91 99860 12818;

n.yogesh@cii.in

mamta.rai@cii.in

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CII-IQ supported companies winners of JIPM TPM Award, 2011

byRajesh Parim, Principal Counsellor, CII-IQ

The 2011 TPM Award Winners, which was announced on 6th February, 2012 in Japan, featured 24 companies which were supported by CII-IQ as an Assessment Agency.

Since 1995, there have been 201 TPM Awards won by Indian companies by challenging the TPM Award process of Japan Institute of Plant Maintenance, Japan.

NEWS LETTER FEBRUARY 2012

( For more details please contact: +91 99726 33044; )joby.john@cii.in

List of companies supported by CII for 2011

2011 TPM Award Winners

Sl No. Company Name Plant Name Country Category

1 Arcelik A.S. Electrical Motor Plant TurkeySpecial Award

for TPMAchievement

2 Arcelik A.S. Cooking Appliances Plant Turkey

Award forExcellence in

Consistent TPMCommitment

3Chennai Petroleum CorporationLimited

Cauvery Basin Refinery India

4 Hi-Tech Gears Limited (Group)

Hi-Tech Gears Ltd (Bhiwadiand Manesar) and GetragHi-Tech Gears (India) PvtLtd (Bhiwadi)

India

5 Indian Oil Corporation Limited Barauni Refinery India

6 Apcotex Industries Limited Taloja Plant India

Award for TPMExcellence,Category A

7 Bajaj Auto Limited Pantnagar Plant India

8Endurance Technologies Pvt.Limited

Suspension Division,Aurangabad

India

9Endurance Technologies Pvt.Limited

Casting Division,Aurangabad

India

10 Exide Industries Limited SF Division, Taloja Plant India

11 Hero MotoCorp LimitedHero MotoCorp Limited,Dharuhera Plant

India

12Indian Oil Corporation Limited(Assam Oil Division)

Digboi Refinery India

13 Minda Industries LimitedMinda Industries Ltd SwitchDivision, Pune

India

14 MRF Limited Kottayam Unit India15 PepsiCo India Holdings Private

LimitedPune Foods Plant India

16QH Talbros Limited

QH Talbros Limited, IMTManesar, India

India

17Raychem RPG (P) Ltd

International BusinessDivision, Vasai

India

18Royal FrieslandCampina

FrieslandCampina DMV bv,Veghel

TheNetherlands

19 Sona Okegawa PrecisionForgings Limited

Gurgaon Plant India

20 Sona Somic LemforderComponents Limited

Gurgaon Plant India

21 The Supreme Industries Limited Pondicherry Plant India

22 Tractors and Farm EquipmentLimited

Manufacturing Unit -Sembiam, Chennai

India

23 Turbo Energy Limited Pulivalam, Tamil Nadu India

24 Unilever Manufacturing (US) Inc Unilever - Owensboro USA

This is the list of companies supported by CII as an Assessment AgencyFor complete list of winners for 2011, kindly visit the the website (http://www.jipm.or.jp/en/index.html)

TPM AwardsRegional distribution

South : 77

West : 58 East : 34

North : 32

1 2 3 613

21

39

65

95

111

132

152161

181

201

0

50

100

150

200

250

1995 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

No.ofAwards

TPM Awards in India (Cumulative)

No

.o

fA

wa

rds

18th Kaizen Conference cum Competition1 - 2 March, 2012 : Hotel Le Meridien, New Delhi

Three categories of presentation for Kaizen Competition are :

• Operator level shop floor kaizens

• Supervisor and Manager level kaizens and

• Senior Manager level kaizens

Operator Level

Supervisor and Manager Level

Senior Manager Level

TAKEAWAYS

For more information contact: Mr Alok RawatTPM Club India, Confederation of Indian Industry,249 F, Sector 18,Udyog Vihar, Phase IV, Gurgaon 122015 (Haryana)T : 91-124-4014074 / 4014060-67 ; E : alok.rawat@cii.inW: www.tpmclubindia.org ; www.cii-iq.in

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Kaizens in this category are expected to give good benefits to the company. The results can be seen clearly through the parameters of PQCDSM. The kaizens implemented under this category are focused on specific losses which are bothering the company in terms of less OEE, man efficiencyas well as high cost.

Kaizens implemented to achieve quantum jump have to be highly focused and would be presented in this category. Generally the theme is one; whereasthe number of kaizens done to achieve the theme would be many. Usage of appropriate analytical tools to arrive at the cause, cost benefit analysis, quality ofimprovement, impact to the company in the short term and long term,results achieved along with other benefits with clear focus on companies topline & bottom line requirements would be the focus.

TPM Club India announces its 18th Kaizen Conference Cum Competition, a National levelcompetition, where selected Kaizen case studies will be showcased by the Indiancompanies to compete for 7 trophies for the coveted “Best KaizenAward”.

Presentations in this category would cover the operator’s area of work, about their machine, problem faced, understanding the root cause of the problem through analysis, action taken and results achieved along with other benefits that had been achieved.

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1st

National Conclave

for Laboratories

Theme: “Credible Laboratory practices – building confidence nationwide”

04 – 05 April 2012, Stein Auditorium, India Habitat Centre, New Delhi

Measuring systems and laboratory practices have undergone significant transformation in the last 2 decades.

Global developments such as the emergence of accreditation systems, technical regulations, and enhanced use

and reliance on voluntary conformity assessments have pitched the need to have reliable test and calibration

results center-stage. India has kept pace with these developments by setting up one of the earliest accreditation

frame-works that covers more than 2000 laboratories today. However the increased expectations and the sheer

volumes present new challenges in sustaining credibilities nationwide. With a view to generate a

mutli-stakeholder review and discussion forum, CII Institute of Quality, and National Accreditation

Board for Laboratories (NABL) have joined hands in organizing the First National Conclave for

Laboratories in India and South Asian Region. The National Conclave, proposed to be an annual feature, will be

the one common platform to share, discuss and evolve policy on all critical and emerging issues relating to

testing, calibration and laboratory management practices.

������Certificate of Participation shall be given to all delegates

�������Policy developments at the International level in laboratory practices and Metrology

�������New emerging business areas for laboratories

�������Importance of Laboratory results in Trade

�������How to engage and derive benefits from the National Accreditation programme (for non-accredited

laboratories)

�������Cross learning through experience sharing and success stories

�������Knowledge sharing on new technologies and scope / capacity expansion

�������Knowledge sharing on meeting regulatory requirements

�������Bridging the gap between accreditation requirements and practices

What the Conclave would deliberate

���For Sponsorship details : n.venkateswaran@cii.in

Who should participate?

�Industries

�Laboratories

(accredited and

non-accredited)

�R&D institutions

�Equipment

manufacturers

�Regulators

�Government

organizations

�NGOs

Early Bird Discount

Rs 1000 off

Register before 29 February 2012

to avail

CII Members : Rs 5,000*NABL Accredited Labs : Rs 5,000*

Others : Rs 6,000*

(* Exclusive of service tax)

For RegistrationsEmail Reply Form to

labconclave@cii.in

Mr N Venkateswaran – CII Mr Mohanish Kapur – CII

+91-124-4014051

NABL Contact person Mrs Anuja Anand 011 46499999

anuja@nabl-india.org

(Sponsored by ABB Limited)

Conclave Objectives

�Updating on recent developments in laboratory practices

�Discovering new business opportunities for Indian laboratories

�Interactive forum for dialogue between Accreditation Body, Regulators, Certifiers and

laboratories – expectations and issues

�Evolving policy for future growth path for testing and calibration services

�Sharing of successful approaches adopted in India.

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B MuthuramanPresident, CII & Vice-Chairman, Tata Steel

We, at Tata Steel believe that “Pursuit of Excellence”

is an imperative for achieving long-term sustainability

and delivering value to all stakeholders. Challenging

the CII-EXIM Bank Award for Business Excellence

enabled us to obtain a comprehensive external

perspective on our business practices and

performance and also an opportunity to

compare ourselves with World-Class

Organisations.

I strongly recommend that all the Organisations

aiming to deliver sustainable and superior

levels of performance, to whole heartedly

adopt the Fundamental Concepts of

Excellence and challenge the

CII EXIM Bank Award for Business

Excellence to understand the maturity

of their business practices and

performance.

uality Newsuality NewsConfederation of Indian Industry

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The Tiger Roars An In–Depth Analysis of How a Billion Plus People ConsumeAt a Glance

NEWS LETTER FEBRUARY 2012

CII - BCG Report

India is a large and growing consumer market, but the expanse and diversity of thecountry make the shape of future growth difficult to predict. Companies can beginto capture this market only by understanding it.

The Many Faces of India

India has a billion plus consumers spanning all income segments. The incomepyramid is real but does only a partial job of explaining consumer attitude andbehaviour.

This report provides the definitive view of the income segmentation and moreimportantly uses other parameters of location, education and occupation to definethe seven segments of India.

�ProfessionalAffluent (Two percent of households):With an annual household income above US$ 18,500, these consumers arewell educated and work as executives, managers or are self employedprofessionals.

�TraditionalAffluent (Four percent of households):With annual household income levels similar to the Professional Affluent,these consumers are less educated and typically self employed. They aremore value conscious and less comfortable with credit than the Professional Affluent.

�UrbanAspirers (Eight percent of households):With an annual household income between US$ 7,400 and US$ 18,500, theseconsumers are educated and have mid–sized businesses or stable jobs. Theylive in urban cities and have high aspirations for their lifestyle.

�RuralAspirers (Six percent of households):With income levels, education and occupation similar to Urban Aspirers, theseconsumers live in rural India. They consume less than their urban counterpartsand are comparatively less aspirational.

�Large Town Next Billion (Six percent of households):With incomes between US$ 3,300 and US$ 7,400, these consumers typicallyhave basic education levels and have small businesses or low paying jobs.Their income levels allow them to sustain a basic lifestyle. They live in townsand cities with a population greater than 500,000.

�Small Town and Rural Next Billion (Twenty Four percent of households):These consumers are similar to the Large Town Next Billion segment, but livein smaller cities & towns and in rural India.

�Strugglers (Fifty percent of households):With an annual income less than US$ 3,300, typically illiterate with limitededucation, these consumers have jobs that are manual labour based with verylow income, generally daily wage.

The Shape and Size of Consumption in India

The Indian consumer market is poised to grow 3.6 times between 2010 and 2020,faster than most other emerging markets.

Rising household income, urbanization, the decline in the traditional joint–family structure, and the coming of age of “Gen I” are key contributors to the growth.

Estimated at US$ 991 billion in 2010, total consumption expenditure is expected togrow to nearly US$ 3.6 trillion in 2020. Food, housing & consumer durables and transport & communication are expected to be the Top 3 categories, accountingfor 65 percent of consumption in 2020. The Professional Affluent are expected todominate consumption in 2020, accounting for 26 percent of total consumptionexpenditure, up from 16 percent in 2010. By contrast, spending by strugglerhouseholds will decline from 26 percent in 2010 to 11 percent in 2020.

Shopping Behaviour

It is important to understand not only the way consumers thinkor state their preferences, but also how they actually consumeand shop. This report examines in detail the shoppingbehaviour of consumers across segments - based on anextensive on-the-ground consumer research with over12,500 respondents.

Key themes which have far reaching implications forcompanies looking to capture the large consumptionopportunity are different across categories.

Food and Groceries

�Trading up tendency increases with rising income levels,especially in food

�Purchase frequency drives format preference, notproduct freshness

�Shopping is often a group activity, not limited to only thehousewife

�Brands are critical till the consideration stage, but reducein importance for actual purchase

�The last three feet at the store is the moment of truth: Keypurchase decisions are taken at the store

Consumer Durables

�Desire to keep pace with changing lifestyles is the keytrigger for purchase decision

�Brand pre–decision varies across product categories�Purchase is a highly planned and researched decision, the

primary objective of the store visit is to execute thepurchase

�Organized retail is preferred for more expensive productcategories

�Online shopping still at a nascent stage - lack ofawareness is the key barrier

Apparel

�Apparel shopping is driven by occasion, rather thanfunctional need

�Fabric quality and brand image are key criteria in drivingconsumer choice

�Large opportunity for private / store labels.�Stores need to tailor value proposition to focus on specific

consumer segments

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uality Newsuality NewsConfederation of Indian Industry

NEWS LETTER FEBRUARY 2012

Organised retailing in India needs addressing several

issues/challenges related to infrastructure, logistics,

taxation etc. Many of these require intervention by policy

making bodies for their satisfactory resolution. There are

however areas which can be expeditiously addressed through

collaboration between trading partners by adoption of

Information Technology (IT) enabled applications and global

standards.

It can signif icantly and positively impact operational

efficiency / productivity, administrative costs resulting in

increased sales, lower logistics costs, enhanced consumer

satisfaction and a win-win opportunity for all trading

partners.

Success in retailing is contingent on effective management

of product master data through maintenance of a single,

trusted, accurate, fully updated and complete product item

master which can be relied upon by retailers and their

suppliers.

Good quality data ensures that all master data in the Supply

Chain is complete, consistent, accurate, time-stamped and

industry standards-based and also allows effective

collaboration among trading partners. It is not only vital

to reducing errors but fundamental to increasing efficiency,

reducing costs and positively impacting customer

satisfaction.

Due to the persistent

exchange of inaccurate

product data among

t rad ing par tners ,

benef i ts cannot be

realized and optimized

from the use of IT tools, applications and technologies

such as Enterprise Resource Management (ERP),

Customer Relationship Management (CRM). This in

turn impacts signif icantly the returns which can be

realised on investment in IT by an organisation.

To study and evaluate its impact on business operations

and provide

recommendations to the

Indian Retail and CPG

Industry for addressing

the same, a detai led

survey was undertaken in

2009-10 by the CII

Nat ional Retai l

Committee.

GS1 India led the study with project execution leadership

by IBM India.

The study was modelled on a similar study undertaken by

IBM in the U.K. [1]. Four major Indian retailers and four

leading CPG brand owners participated by sharing details

on the status of their respective product master data as

requested through the study questionnaire.

One such area which is at the core of mission critical retail

operations relates to accuracy of master data of traded

SKU’s. This is extensively used in facilitating several

applications related to ordering, despatch, inspection,

invoicing, stock management, replenishment, category

management, planogram planning, demand forecasting,

reverse logistics, consumer bill ing, warehouse

management etc.

70% - Average level ofproduct data

inconsistency acrossRetail sector.

Rs 40 to 50 billion -Estimated loss over next

5 years due to poor data.

1 0 1The India Data Crunch Report 2011

The India Data Crunch Report 2011- Executive Summary

The data supplied by each participant was collated,

compiled and analyzed for correctness and completeness

with respect to GS1 Standards. The level of data

inconsistency was determined by comparing the retailer

and supplier data on a common set of parameters / data

attributes.

The impact on business operations was then tabulated to

demonstrate the linkage between data quality and business

results. The impact on organisational performance was

tabulated under three broad categories covering loss of

revenue, additional costs incurred and opportunity costs.

This included f ill rate loss, deductions, administrative

shrinkage, loss of man-hours on duplication of work and

time / efforts spent in resolution of errors etc.

The study revealed startling results on the extent of

inconsistency in product master data between retailers

and suppliers which exceeded 70%. Estimated losses on

account of the same which could get sustained by the

Indian Retail and CPG sector over a five year period pointed

to losses of between Rs 40 - 50 billion due to data

inconsistency and subsequent errors.

In a sector like retailing with relatively small net profit

margins, such losses could significantly impact overall

profitability of trading partners if not addressed through

collaborative efforts.

In its recommendation, the report urges Indian retailers

and suppliers to adopt and implement global standards

for data structure, data validation, its communication and

updation following global best practices and standards.

The report also recommends adoption and

implementation of Global Data Synchronization Network

(GDSN) through subscription to a certif ied GDSN datapool

service provider. The standards for the same, called GDSN

Standards, have been developed by GS1 through active

participation of various stakeholders representing retailers,

CPG companies etc.

India has the opportunity to benefit from the maturity

level that GDSN has attained over the last few years and

can speed up its adoption without having to expend efforts

and delays in starting from scratch.

Study recommends adoption of global data qualityand product data synchronisation standards by

retailers and their suppliers.

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12 1 PAGESThe India Data Crunch Report 2011

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uality Newsuality News

�Laboratory Management System & Internal Audit as per ISO / IEC 17025:2005

�Workshop on Internal Auditors based on ISO 9001

17-20 January, Kolkata 19-20 January, New Delhi

�Lean Conclave 2012 23-24 January, Chennai

�

�

�

�

Workshop on Accreditation Criteria for Inspection Bodies based on ISO 17020

Workshop on Assessment For Business Excellence For Large Business Organisations

Workshop on Developing Equipment Competent Operator Step 4 Jishu Hozen

The Imperative of Risk Management in Turbulent Times

23-24 January, New Delhi

23-25 January, Mysore

30-31 January, Pune

31 January, New Delhi

�

�

�

How to improve the Business Competitiveness through KK Methodology

Awareness program on NABL accreditation for Laboratories

Laboratory Management System & Internal Audit as per ISO 15189:2007 for Medical/Clinical Laboratories

23-24 January, CII-IQ, Bangalore

24 January, Vishakapatnam

30 January to 2nd February, Mumbai

ACTIVITIES & PROGRAMMES CONDUCTED DURING JANUARY 2012

FORTHCOMING PROGRAMMES March 2012

28 Feb - 3 Mar

2012

QMS Lead Assessors Course

BANGALORE

9 March

2012

Appreciation programme on TPS

BANGALORE

12 - 13 March

2012

Accreditation Criteria for Inspection

Bodies, ISO 17020

Accreditation Criteria for Inspection

Bodies, ISO 17020

NEW DELHINEW DELHI

15 March

2012

Seminar on Risk Management – The

Imperative of Risk Management in

Turbulent Times

KOLKATA

19 - 20 March

2012

Business Competitiveness through Skill

and Knowledge Improvement

BANGALORE

21 - 23 March

2012

Strengthening MR skills

MUMBAI

6 - 7 March

2012

2-Day programme on Customer

Relatationship Management (CRM)

BANGALORE

14 - 16 March

2012

Workshop on Assessment for Business

Excellence-2012, for Large Business

Organizations

NEW DELHI

20 - 21 March

2012

Workshop on Assessment for Business

Excellence-2011, for Small and Medium

Businesses (SMB)

CHENNAI

1 - 2 March

2012

Kaizen Conference

NEW DELHI

13 - 16 March

2012

Internal Quality Audit for Laboratory

Management Systems based on ISO 17025

CHENNAI

20 - 21 March

2012

Understanding Laboratory Management

Systems based on ISO 15189

MUMBAI

CII Headquarters : Mantosh Sondhi Centre, 23 Institutional Area, Lodi Road, New Delhi 110003. Phone : 91-11-24629994 - 7 Fax :91-11-24626149 / 24633168

Confederation of Indian Industry

Confederation of Indian Industry

CONTACT DETAILS

Confederation of Indian IndustryCII Institute of Quality

Bharat Nagara 2nd StageMagadi Road, Vishwaneedam Post,

Bangalore - 560 091 T : +91 80 23286085 / 7690/9391

F : +91 80 23280314

Kolkata

Confederation of Indian Industry 6, N.S. Road Kolkata 700001 T : +91 33 22307727 / 28 / 1434F : +91 33 22301721, 22312700

Chennai

Confederation of Indian IndustrySouthern Region98/1,Velacherry main roadGuindy. Chennai 600032T : +91 44 42444555

F : +91 44 42444510

Gurgaon

Confederation of Indian Industry Plot No. 249 F, Sector - 18 Phase IV, Udyog ViharGurgaon - 122015 T : +91 124 4014060-67

F : +91 124 4014069 / 80

Pune

Confederation of Indian IndustryPune Zonal Office10th Floor, Office D, Godrej Eternia-C,

'B' Wing, 3, Off Pune Mumbai HighwayWakdewadi, Shivajinagar, Pune 411 005T : +91 20 66075800 / 01

F : +91 20 66075822

For further details, please contact:jayashree.das@cii.in

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NEWS LETTER FEBRUARY 2012