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Enablers for
Sustainable Manufacturing & Global Quality Levels
Rahul Bharti
GM (Corporate & Govt. Affairs), Maruti Suzuki (I) Ltd.
Co-Chair (International) Society of Indian Automobile Manufacturers
1
2
Quality
Thirty years ago….
A topic of conversations a tool of company image
….. and an expense but not mainstream business strategy
3
Through an Act of parliament. With stated objectives:
– Develop a fuel efficient, maneuverable, affordable people’s car
– Through this venture, modernize Indian manufacturing
• Govt. mandated phased manufacturing programme - PMP
• Vendor development
– 120 foreign technology collaborations
– No easy solutions - Journey of learning
Genesis of Maruti
4
Quality journey
Indian component industry today:
– $ 40bn industry
– Indian MNCs
– 12 Deming awards
– 3 JIPM awards20%
80%
OEMComponent ManufacturersSMEs are the backbone of the
Indian manufacturing industry
Share of value add
5
Quality journey: Customer satisfaction
2004 2005 2006 2007 2008 2009 2010 2011 2012650
700
750
800
850
900
813823
848838
820 824
849
879 879
758 761776 777 780 785
812824
834
MSIL Industry
J.D. Power study
6
Need to do more…
– Improve quality levels
– Upgrade smaller & tier-2 suppliers
– Build Scalability through robust Quality systems
Enablers for quality at the organization level
7
Qualitypeople
Investmentin
technology
Investment in capability
building
ProfitabilityWillingness
to equitydilution
Top levelcommitment
& culture
Investment in superior equipment
Financialcapability
CEO’smindset
Access toCapital
8
SMEs
Affordability
Policy&
Proceduralhassles
Economies of
scale
Energy deficit
Infrastructureconstraints
Taxation
Determinants of profitable growth
9
• Trade Policy to encourage investments not imports– Allow Indian SMEs to pick up global economies of scale, which will
make them globally competitive– Give market access only against investment commitment in India– Keep hi value-add products like cars out of EU FTA as they have a
huge multiplier effect for economy, employment and capability
AGENDA FOR POLICY
AGENDA FOR INDUSTRY• Take ownership for upgrading ITI’s in the country• Recommend curriculum changes to include Quality As a Way of Life -
subject in Engineering /Science /Management education • Set voluntary standards and keep raising the bar for performance, quality
and customer satisfaction.
MINIMAL ENABLERS for MAXIMUM IMPACT
10
THANK YOU
God, give me the serenity to change the things I can,
the courage to accept the things I cannot and the wisdom to know the difference…