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

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Quality

Thirty years ago….

A topic of conversations a tool of company image

….. and an expense but not mainstream business strategy

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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

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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

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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

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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

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Qualitypeople

Investmentin

technology

Investment in capability

building

ProfitabilityWillingness

to equitydilution

Top levelcommitment

& culture

Investment in superior equipment

Financialcapability

CEO’smindset

Access toCapital

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SMEs

Affordability

Policy&

Proceduralhassles

Economies of

scale

Energy deficit

Infrastructureconstraints

Taxation

Determinants of profitable growth

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• 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

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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…