TN auto biz gains from Japanese rigour

Five of the 12 Deming awards belong to the TVS group with Sundaram Clayton bagging the first one in 1998, setting the stage for other auto players.  The latest to join the bandwagon is commercial vehicle major Ashok Leyland, which is headquartered in Chennai.

Cut-throat competition, a global market and a host of factors were instrumental in driving the industry to “forcefully” embrace the Total Quality Management (TQM) mantras to survive.  “The only way to get to the next level of business is by embracing TQM standards. It is literally thrust upon us. Auto majors like Hyundai offer a 10year warranty for cars in the US market. 

So, it is imperative for suppliers to produce quality products as the fear of parts being rejected is high,” notes S Seetharaman, who established Super Auto Forge (SAF) in 1974. SAF exports to N American and European original equipment manufacturers (OEMs) and Tier 1 automotive and non-automotive customers since 1998.  Back in 1985, Maruti and Hero Honda ushered in the quality revolution. 

Of course, others such as Swaraj Mazda too played a crucial role. But in the early 1990s, with players starting to eye the export market, quality was emphasised upon, says the veteran, who has completed five decades in an industry that has witnessed cyclical changes, spurred by domestic and global developments. 

“The system of awarding contracts itself is such that the approval of a vendor begins through a process that involves observation, evaluation and the ability to execute the order. The fear of rejection means having perfect processes in place. So, to supply million parts to an auto major means those managing such large volumes must ensure nothing goes wrong,” Seetharaman says, recalling the years of toil, the need to focus on quality and the constant challenge of developing the components, which is a big process. Despite early adoption of the quality processes, India caught the attention of global auto biggies only 15 years later in the 90s. 

Concurring with this view is another industry veteran, R Mahadevan, who heads research and development at India Pistons. 

“Deming award is not for any particular sector. TQM is internalised and applied successfully. What it represents is the high level of quality that an organisation shows in its systems, process and people,” he said. The absence of surprise element and producing quality products are core to the TQM. Initially, no friendliness was shown when the Japanese consultants were engaged for the quality assignment by companies keen to grow and scale. 

“They introduced the concept of having everything in place and having a place for everything; systems, process, visual guidance, colour codes, identification and these range of factors have to be considered to give a product that is agreed upon with the customer,” he elaborated. 

Embracing Deming principles and being awarded reflects the organisation’s intent to be transparent with its processes and having the pride in churning out quality products. 

“For instance, employees of Indian Space Research Organisation (ISRO) may be more stringent about their approach to quality but the ‘sensitive’ nature of their line of work puts them out of the ambit of such recognition,” he says. 

Mahadevan says the average spend for embarking on quality initiatives that prepare organisations to take on the Deming challenge would be Rs 2 crore. Based on the size and scale of the business it could even go past Rs 12 crore. “Japanese quality is of high order. 

Deming award is a neutral quality recognition with a stamp of superior experience as far as quality is concerned,” he said, noting that the award symbolically revolves around quality recognition rather than focus on profitability or business revenues.