| Abstract | In the rapidly changing global scenario, it became increasingly clear that new thinking was required to make businesses competitive given the challenges of liberalised trade regimes, free flow of capital and knowledge. The prodigious marriage of computers, communications and technology provided lot more options to the consumers, competitors, employees, suppliers and providers of money alike. Customers and Consumers have become more demanding, not only in terms of product quality or costs but also innovations and detect free services.
The Author, anticipating the change, advised the Chairman of the Aditya Birla Group, (with sales and assets in excess of 6 billion US dollars and having manufacturing sites in India, Thailand, Philippines, Thailand, Malaysia, Indonesia, Egypt and Canada), to focus on lifting the standards of Manufacturing in all his Units. The Author joined the Group in late 1996 as The President of World Class Manufacturing, a Corporate Function, as a direct reporter to the Chairman.
Some companies in the Group, which are making good profits, perceived themselves as World Class since they had obtained ISO Certification, and a few other Awards. Yet others were pursuing customers with their own definition of quality, costs and delivery. And some were pursuing improvement programs under external consultant's guidance. The business went on as usual, except more explanation of how competition was increasing, and generic statements like "we are doing all we can to deal with the situation which should improve soon" It was in the above context that Author thought of trying holistic approach for Good Governance at all levels, at all locations, involving all employees and all activities with focus on Manufacturing since best of marketing efforts would be in vain if not backed up by a World Class product with right cost and delivery. Anticipating the future needs, Author wanted everyone to focus on Innovations and Intellectual Capital and highest levels of Productivity from the six Ms [we call it. Men or Women (People), Material, Machines, Methods, Measurement and Markets].
After studying current literature and case studies on the subject and interacting with his former employers in Europe, America, Africa and Asia, and his potential customers (the 67 Plants in 1997) Author devised a Model that was futuristic, holistic, simple to be understood as the `Art of Managing the Workplace', small or big. This was supported by a detailed Road Map and Methodology for Implementation of the Revolution for Excellence in the Group. A set of unique actions that would change the Mindset and Inspire the troops were developed and applied. Each of the 67 Plants have developed and deployed its own actions for percolating the philosophy, concept, tools and technique for the Deployment, Assessment and Review for becoming a world class manufacturer (WCM) The results are most satisfying as, the Model, its Road Map and Methodology with actions for Sustaining the Momentum has led to significant improvements in Products, Processes, Mindset and Culture of the People; they have attained higher knowledge level in their work, become extremely customer focused and have sent positive signals to all the stakeholders about their ability to protect the future, enhancing the competitiveness of their business, and therefore the Nation, and thereby protect the future of the next generation of employees, investors as well as other stakeholders.
The tangible savings (over a period of approximately 5 years) in both Indian rupees and UK Pounds Sterling are summarized here under.
On an average there are savings of about 9.5 millions UK £ per year. The turnover of the group is about 5500 millions UK (E). The savings thus comes equivalent to about 0.2 % of the Group's turnover which is a substantial amount creating a big impact on bottom line. |
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