“JOURNEY TOWARDSWORLD CLASS ENTERPRISE”

CHALLENGES OF GLOBAL MARKET

SITUATION ANALYSIS

HOW TO MEASURE COMPETITIVENESS IN GLOBAL MARKET??

C T Q• Cost : Minimum• Time: Shortest (order taking to delivery)• Quality: World class

COMPETITIVE QUALITY

THE MANAGERIAL CHALLENGE?

To make more profit the challenge is to• Reduce COST• Reduce lead TIME• Improve QUALITY

IDEAL SITUATION

• Best quality raw materials at minimum price

• Your people and processes produce world class quality

• Your products are picked up by customers at your price

But, in real life is it possible ?

HOW TO ENHANCE COMPETITIVENESS?

ROADMAP TOWARDS EXCELLENCE…

Level 1~2 Level 2~3 Level 3~4 Level 4

HOW TO MOVE UP THE LADDER??

“OVERVIEW OF LUCAS-TVS LTD”

CUSTOMER PHILOSOPHY

“A CUSTOMER IS THE MOST IMPORTANTVISITOR ON OUR PREMISESHE IS NOT DEPENDENT ON USWE ARE DEPENDENT ON HIMHE IS NOT AN INTERRUPTION IN OUR WORKHE IS THE VERY PURPOSE OF ITHE IS NOT AN OUTSIDER ON OUR PREMISESHE IS A PART OF ITWE ARE NOT DOINGHIM A FAVOUR BY SERVING HIMHE IS DOING US A FAVOUR BY GIVINGUS AN OPPORTUNITY TO DO SO”

M K Gandhi

• Started in 1911

• India’s largest auto component manufacturer and exporter

• TVS group sets standards as market leaders

• USD 2 Billion, 32 companies, 25 product lines, 25000 employees

GROUP OVERVIEW

• CUSTOMER FOCUS• EMPLOYEE INVOLVEMENT• INNOVATION• ETHICAL PRACTICES

CORPORATE CULTURE

INNOVATION• Only manufacturer to offer complete range to all segments

• Lowest Cost Producer

• In the last 40 years supplied products in most of the VehicleLaunches in India ( 40 million rotating machines supplied)

• Biggest R&D centre in India for Auto electrical

• First to introduce Cellular Manufacturing in India

MID 1980’S SCENARIO AT LUCAS TVS & REALISATION FOR 21st CENTURY

• HIGH VARIETY

• LOW VOLUME

• WORLD CLASS COMPETITION

• NON-COMPETITIVE INTERNATIONAL PRICES

• NEED TO IMPROVE PRODUCT QUALITY

• LACK OF QUICK RESPONSE TO CUSTOMERS

• SOME OUTDATED PRODUCTS (26% OF TOTAL TURNOVER)

KEY DIRECTION CHANGES IN 1980’s

Over 60% of Lucas-TVS revenues are based on productsdeveloped in-house

Well Established Engineering Facilities

Product Development Capabilities

Lucas-TVS follows established National, International andCustomer-based standards in product testing

Advanced Engineering at Lucas-TVS

Lucas-TVS is focusing on developing its technology tomaintain its leadership position

• PRODUCTION FLOW ANALYSIS

• RUNNER, REPEATER, STRANGER ANALYSIS

• PRODUCT STRUCTURE TREE

• INPUT/OUTPUT CHART

• SIMULATION

• FLOW CHART

• PROCESS CAPABILITY STUDIES

• DMCP/DMUS ANALYSIS

KEY TECHNIQUES

JOURNEY TOWARDS MANUFACTURING EXCELLENCE

TQM FUNDAMENTALS

CUSTOMER FOCUS

PROCESS MANAGEMENT

TQM & HR

CONTINUOUS IMPROVEMENT

• CUSTOMER DEFINES QUALITY- Must be Quality-Attractive Quality

• CUSTOMER CONSCIOUSNESS- Next Process “is my Customer”

• ORGANISATIONAL MARKETING

Customer Focus

• PROCESS ORIENTATION

• PROCESS MAPPING

• Use of “SOP’s” TO MAINTAIN PROCESS

• PROCESS IMPROVEMENT

Process mgmt

•TRAININGS

•TEAM WORK

•CFT

•QUALITY CIRCLES

•ROUTINE MANAGEMENT

TQM & HR Continuous Improvement

•PDCA APPROACH TO WORK

RESULTS IN TERMS OF QCDM BASIS