11

TQM Dissemination

and Promotion

Venu Srinivasan

Chairman and Managing Director

Sundaram-Clayton & TVS Motor Company,

India

1

Sundaram-Clayton TVS Motor

22

TVS has evolved from a bus service company to a leading

Indian automotive group with over 60 companies

1911 1929 1961 1979 1984 2002

• Founded by

Late Shri. TV

Sundaram

Iyengar as a

Bus Service

• Started GM

dealership

• Started Auto

Component

Manufacturing

• Sundaram

Clayton and

other

companies

• Sundaram

Clayton

started

two-wheeler

business

• Ind-Suzuki – A

Joint venture

with Suzuki

• Emergence of

TVS Motor

company from

JV

TVS Group – 108 years of heritage

33

Learning from the Founder

Best GM dealer service

network in

30s-40s

100% trust of

customers &

employees

Perceive a value

worth $1 for a

price of 75 cents

100% first time

right service in

the cleanest

workshop

2 31

Proverbial Punctuality

Fair price during WW2

Customer perceived

value significantly

greater than the price

Trust Value Service

Ensured quality in

everything we did

Three elements

helped sustain the philosophy

44

My search for excellence

• During 1979, I took charge of SCL as the Managing

Director at the age of 27, on demise of my father.

• During my visits to western companies while studying, I saw

no ownership by employees as they were not treated as a

part of their family.

• In 1981, I visited Japan looking for partners to enter the

motorcycle business.

• My eyes were opened when I visited Suzuki, Honda and

Denso.

• I was astounded by the spirit of all the employees who

completely identified with the values of their companies.

55

My search for excellence

• I experienced cleanliness everywhere, discipline, single piece

flow and no inventory. That was my grandfather’s dream.

• Inspired by the learning from Japan, I started reading

textbooks translated in English on Japanese management

practices by Dr Ishikawa, Mr Taiichi Ohno, Dr. Shigeo Shingo,

Prof Yoji Akao, and Dr Hitoshi Kume.

• With this learning, I started practice of 5S, QCC at SCL.

• During this time, SCL faced a few business challenges.

66

Challenges faced at SCL

• Customer satisfaction, Quality and Discipline were diluted due

to closed market over 4 decades starting from 1950.

• During 1987 to 90, recession in commercial vehicle industry

resulted in significant drop in business revenue and profit.

• A long-term solution was needed to regain our culture, value

and heritage.

77

My inspiration for TQC

• Indian companies couldn’t avail guidance of Japanese

professors to initiate TQC.

• Mr Rajiv Gandhi, the then Prime Minister of India signed

a bilateral agreement with Govt of Japan to support India

for promoting quality.

• I attended the first National conference for top

management during April 1986 on TQC, addressed by

Dr Ishikawa and Mr K Matsuda.

• Conference concluded with the formation of the National

committee on Quality under the leadership of

Dr V Krishnamurthy and Mr Janak Mehta as Member

Secretary.

88

My inspiration for TQC

• During April 1988, CII formed the TQC division with the

membership of 23 prominent member organizations. SCL was

one of the 23 companies.

• We nominated a few senior managers for the first TQC program

in English by JUSE in Japan.

• Mr Janak Mehta was a full-time advisor for setting up TQC

division in CII.

99

I believed that Japanese TQC could help me address the business

challenges at SCL.

TQC

Respectfor

humanityCustomer focus

System orientation for effectiveness

TVS way of life

Excellence in customer service,

satisfaction & trust

Excellence indaily work

5 S,Productivity &

Technical excellence

Employees total

commitment

Chose TQC to regain the values, culture and heritage

Employee involvement

1010

Learning TQC from JUSE mentors

• In 1991, I requested JUSE to assign TQC mentors for

guiding SCL

• Prof Kurahara agreed to visit SCL for a day during one of

his visits to India. Since Prof was available only on a

Sunday, our company made Sunday as a working day.

• Prof was very much impressed with our commitment and

agreed to guide us on TQC.

• He conducted training programs on policy management.

• During the same time, JUSE assigned Prof Washio to

guide our company on quality management process and

new product development.

• Later Prof Tsuda commenced guiding SCL when Prof

Kurahara became unwell.

1111

Journey of SCL – Brakes Division (Now WABCO)

Introduction phase : 1987-90

• Need for change seminar, commenced daily sunrise meeting, and in-

house journal TQC news.

• Visible symbols of change – Common uniform, common canteen,

open office, family sports day and family founder’s day.

Goal congruence phase : 1990-93

• Training by JUSE counselor on daily management, policy

management, MPCP, VCS.

• Vision, mission and Schedule A and Schedule B audtis.

• Manufacturing reengineering from process layout to product layout.

1212

Journey of SCL – Brakes Division (Now WABCO)

Deployment phase: 1994-98

• Establishing cellular manufacturing with single piece flow.

• Establishing operation standards, QCPC, SPC, supplier management.

Continuous improvement & Technology phase :1999 onwards

• Product and technology plan, electronic control systems and

information technology

• Value stream mapping, TPM and ISO 14001.

1313

Effect of TQM - Sundaram-Clayton

• Sundaram-Clayton achieved excellence in quality level and

business growth during 1998 – 2002.

UOM

M

Introduction

phase

Goal

congruence

phase

Deployment

Phase

Technology

development

phase

1990 1993 1998 2002

New products speed Launch per

year1 1 4 15

New product sales to

the total sales

%- 4 6 27

Warranty complaints

for all products

PPM10000 3460 1689 1020

Sales revenue Bn INR 0.51 0.78 1.3 1.7

Profit before tax Bn INR 0.06 0.15 0.16 0.19

• Sundaram-Clayton was the first company to win Deming prize

in 1998 and Japan Quality Medal in 2002.

• This experience was applied to a large and complex business

- TVS Motor

1414

Challenges faced at TVS Motor

• During 1984, established JV with Suzuki and launched first Indo-

Japanese motorcycle in India.

• Business started well, Lost share as other Japanese players entered

the market.

• Profit declined and there was a major crisis and fight for survival.

• We aggressively reduced all costs and created profit by top down

approach.

• In order to sustainably grow, we wanted a process driven TQM

approach.

1515

Planning phase

Planning phase

(1990-95)

Promotion phase

(1995–99)

Deployment phase

(1999-05)

Setback phase

(2005-10)

Resurgentphase

(post 2010)

• Initiated cultural change – Communication by

President & MD

• Nomination of Sr managers for TQM seminars

• Training on 5S and QC story and initiated TEI

• Learnt policy management and initiated

deployment

• Introduced new product development process

1616

Promotion phase

Planning phase

(1990-95)

Promotion phase

(1995–99)

Deployment phase

(1999–05)

Setback phase

(2005-10)

Resurgentphase

(post 2010)

• Introduced customer satisfaction survey and improved product quality

• Improved new product development process to achieve Target quality

• Understood segmentation and developed variants for three segments

• Reduced manufacturing lead time

• Developed a scooter with 4S to acquire capability to develop 4S engines independently

Samurai“No problem Bike”

Max R“Rural Bike”

Shogun“Power Bike”

1717

Deployment phase

Planning phase

(1990-95)

Setback phase

(2005-10)

Resurgentphase

(post 2010)

• Monthly TQC council for TQC permeation and

Daily work management

• Improved new product delivery with cross-

functional teams

• Improved employees’ competency for product

engineering and technology

• Developed and launched first 4S motorcycles

with TVS R&D team

Deployment phase

(1999–05)

Promotion phase

(1995–99)

1818

Setback phase

Setback phase

(2005-10)

Planning phase

(1990-95)

Resurgentphase

(post 2010)

• Post launch, Victor lost ground due to poor

reliability and durability

• Continued to have failures in other new

products as well

• Product concepts poorly defined

• Inadequate response to customer complaints in

the field

• Deep reflections on the root causes and

initiated countermeasures

Promotion phase

(1995–99)

Deployment phase

(1999–05)

• Deployment of new technology without

adequate proving

• Inadequate understanding of requirements of

Target customers and usage conditions

• Realized need to learn the “know-why” for

improving durability and reliability

• Internal succession pipeline was weak

• Lack of congruence to TQM by the senior

managers hired laterally

Problems: Root causes:

1919

Setback phase

Setback phase

(2005-10)

Planning phase

(1990-95)

Resurgentphase

(post 2010)

• Loss of market share and profitability

• Low morale of employees leading to high attrition

• Low morale of dealerships due to declining sales and viability

• Loss of confidence of suppliers due to declining volumes

Promotion phase

(1995–99)

Deployment phase

(1999–05)

Effects:

Declining performance leading to crisis

2020

Resurgent phase

Resurgentphase

(post 2010)

Planning phase

(1990-95)

• Implemented holistic approach towards quality covering Design, Manufacturing, Supplier and

Service quality

• Introduced a process for deeper understanding of customer requirements and usage

conditions including marketing actions for new products

• Strengthened the design verification and validation processes.

• Evolved TVS way incorporating learning from TQC journey and conducted training for all

managers in the company.

• Special focus on customer after sales service, sales and service process improvement

in international markets

• Systematic implementation of HR management to provide robust leadership pipeline

• Systematic competency development processes to develop know-how and know-why for

new products.

Promotion phase

(1995–99)

Deployment phase

(1999–05)

Setback phase

(2005-10)

Actions implemented:

2121

Effects of TQM – TVS Motor

UOM

M

Planning

phase

Promotion

Phase

Deployment

Phase

Setback

Phase

Resurgent

phase

1995 1999 2005 2010 2014 2018

New products speed Products

launched

per year

1 1 1 1 3 6

New product sales to the

total sales

%10 8 18 12 25 29

Warranty complaints for all

products

Defects /

100

vehicle

40 30 15 11 3 1.5

Sales volume Nos in

mn0.4 0.8 1.3 1.5 2.5 3.8

Market share % 13 18 18 12 13 15

Global market share % - - - - 4 6

Profit before tax Indexed 100 200 280 150 800 1575

No 1 Position in 4th time in a row on Initial

Quality, APEAL Quality and Service Quality by

JDP survey

2222

Recognition for TQM journey

• SCL was awarded Deming Prize in 1998. and

Japan Quality Medal in 2002.

• SCL was the first company in India and 4th

company outside Japan to receive coveted

Deming Prize.

• TVS Motor was awarded Deming Prize in

2002.

2323

Institutionalizing TQM – ‘TVS Way’

Core Values Guiding Principles

• Trust

• Value

• Exactness

• Passion for

customers

• Customer focus

• Quality first

• Respect for people

• Focus on people

for results

• Fact control

• SDCA/PDCA

• Recurrence

prevention

Management

Processes

Business

Processes

• Daily work

Management

• Policy

Management

• Continual

Improvement

• People

development

• Information

Technology

• Production

System

• Product

Development

System

• Retail System

• Evolved ‘TVS Way’ by converge our learning TPM, lean, QMS under

the umbrella of TQM

2424

Personal learning from TQM

The spirit of TQM is to

• Share and propagate the learnings.

• Create prosperity for the industry and society.

• Based on this spirit, started sharing our TQM journey to

our group companies, many other companies in India.

• Many of our senior managers shared their experiences in

quality management, new product development,

manufacturing, supplier engagement and guided many

companies.

2525

3 more companies are making progress towards Deming prize

Support to Industry - TQM in group companies

Sundaram

Fasteners

[2018 DP]

Turbo Energy

TVS Tyres

(Initiated TQM

journey)

Wheels IndiaSundaram Brake

Linings [2001 DAP]

Brakes India

[2003 DAP]

Lucas-TVS India

[2004 DAP,

2012 DGP]

Delphi TVS

(Initiated TQM

Journey)

Sundaram-Clayton

[1998 DAP,

2002 JQM]

Sundaram Auto

Components

(Initiated TQM journey)

TVS Motor

[2002 DAP]

Other CompaniesSundaram-Clayton

group of companies

TVS Group

2626

TQM dissemination through CII

• On receiving Deming Prize for SCL, shared the journey in CII -

Quality Summit.

• CII initiated TQM cluster for 18 mid size companies with Maruti,

mentored by Prof Tsuda.

• Many of these companies have won the Deming Prize.

• Mrs Sarita Nagpal played an active role as one of the CII-TQM

counselors in guiding the TQM cluster companies.

• More than 100 companies have visited SCL and TVS M to study

the best practices of TQM in this journey.

2727

TQM dissemination through CII

• As the President of CII and Chairman of the National Committee for

Quality, played an active role in accelerating TQM promotion.

• Organization of 6 regional counsellors of TQM and each one

mentoring 6 companies towards TQM permeation.

• Annual Quality Summit is organized to share best practices of TQM

and their success stories.

• 100,000 practicing managers were trained on TQM methods.

• 36 Indian companies won Deming Prize and 7 companies won

Deming Grand Prize with India becoming 2nd largest country to

have Deming prize winners.

2828

TQM dissemination through CII

• VLFM (Visionary Leaders for Manufacturing) was instituted

with a vision to take Indian manufacturing to the world. This

program is a transformation mission to shape senior managers

into industry visionary leaders of tomorrow.

• Started under the guidance of Prof Shoji Shiba through JICA in

the year 2007.

• As chairman of VLFM governing council during 2015 -2018, we

developed more than 300 managers as leaders for tomorrow.

• Mrs Sarita Nagpal, along with senior leaders of Godrej, Sona

and Anand group have played a key role in shaping this

program.

• In my companies, more than 50 managers have been trained

under this transformation journey.

2929

TQM dissemination through ACMA

• Progress of CII cluster for TQM promotion inspired ACMA.

• ACMA cluster established to create community for learning and to

implement TQM which will provide

• Customer satisfaction and quality focus

• 5S, daily work management

• Total Employee Involvement for continuous improvement

• Mr C Narasimhan, then SCL President led one of the OEM’s

supplier council and ACMA supplier cluster. Continues to guide

voluntarily many companies on TQM, TPS.

• Mr Selvamani, former R&D head of SCL, post retirement was

guiding many companies on new product development.

• Started with 10 companies cluster and today with more than 400

companies following TQM practices.

3030

TVS Institute for Quality and Leadership (IQL)

• Established in 2011 to develop current and future capabilities of

employees in our companies, suppliers and dealers.

• IQL offers program on the following areas - Cultural capabilities,

Process/Collective capabilities, Support Business Strategies,

Corporate Social Responsibility

• Dr Kovaichelvan has steered in establishing IQL and he is guiding

many educational institutions for enhancing quality of engineering

education and establishing community polytechnic for

agriprenurership.

• IQL is certified by Global Council of Corporate Universities.

• On an average 300 employees get trained at IQL everyday.

Exclusive facility for training and building talent for future at TVS

3131

Transfer of Kaizen culture to families and community

Home Kaizen was initiated to spread continuous improvement at

employee’s home and their family members

• Family members of employees participate in

Kaizen program focusing on

• Energy conservation

• Safety at home

• Education for children

• Waste elimination

• 40% of employees’ families participate in this

program.

• More than 1000 kaizens are being implemented

every year.

3232

Benefits of Home Kaizen

• Over years, Home

kaizen ideas are being

horizontally deployed

across families of TVS

employee and other

families

• This has resulted in

huge benefits for the

society.

• On an average 2Mn

Liters of water being

saved every year

through water

conservation.

3333

Promotion of TQM in Society – Through SST

• Established Srinivasan Services Trust (SST) in 1996

to empower people in villages for sustainable self

development.

• Adopted TQM principles for community development.

• SST primarily helps in making the villages identify and

overcome issues towards their livelihood.

• SST activities focus on – Economic development,

Health, Education, Infrastructure & Environment.

• Covering 5000 villages in five states across India,

reaching 0.7 million rural families and 3.1 million

people.

3434

Impact to society through SST

• 74% of SST villages have safe drinking

water.

• 6.45bn INR income generated thru Self

Help Groups.

• 175,250 hectares covered under

afforestation.

1993 – Forest cover 2018 – Forest cover

Santhavasal Santhavasal

3535

Dissemination of SST CSR model to other companies

• Village Buddha is to develop and permeate

systematic and organized activities towards

community development by leveraging the CSR

experience of companies like TVS and Godrej.

• Village Buddha was initiated by CII at TVS IQL

under the guidance of Prof Shoji Shiba.

• Village Buddha program was inaugurated in 2014

by Rural development Minister for Karnataka State.

3636

Dissemination of SST CSR model to other companies

• Developed 5 principles and 15 tools for village development.

• 5 Programs, 20 companies and more than 100 senior

management team of participating organizations went through

2500 man-days of training to acquire the skill set of systematic

village development.

• Major companies that have nominated in this journey are Bosch,

Godrej, TVS Tyres, and Anand group.

3737

Contribution to sustainable development goals

• 93% of recyclability of existing products.

• 75% reduction in Direct green house emission.

• Zero discharge and Zero land fill for more than a decade.

• Place for 300 species in the plant premises.

• 53% reduction in energy intensity of our vehicles in 5 years.

• Renewable energy share of 70%.

A Pond inside campus –Place for migratory birds

3838

Contribution to the Global arena

• Industrial professor at the University of Warwick since 2008.

• Professor of Practice – Indian Institute of Technology, Madras -

Offering a nine credit open elective course on ‘Business excellence and

Quality management’ at IIT, Madras which is well rated by the students.

• Lecture at Asian Network for Quality during 2004 and 2012.

• Pre-conference seminar of JUSE International Quality Circle

Convention in 2014.

• Promotion of TQM at our plants in Indonesia and in the USA.

• TQM way of working is being promoted at International distributor

assembly plants at Srilanka, Bangladesh, Nigeria, Kenya, Ethiopia and

Latin American countries covering more than1000 people.

3939

Dedicating the accolades to all Mentors, Customers, Employees

• Indian Society for Quality has recognized the contribution to the

quality movement and awarded the Jamsetji Tata Lifetime

Achievement Award in 2004.

• University of Warwick has recognized me with Doctor of

Science in the year 2004.

• IIT Kharagpur, India recognized me with Doctor of Science in

the year 2009.

• I was recognized by Asia Network for Quality and awarded with

Ishikawa- Kano award in 2012 for my contribution to the theory

and practice of quality management across Indian industries .

• Purdue University, USA honored me with Doctor of

Management in the year 2014.

4040

Key lessons from my journey

• Institutionalize TQM as a way of life.

• Sustainability across entire chain of suppliers, dealers,

stakeholders and community for future proofing.

• Sharing and spreading the spirit of TQM and create prosperity in

Industry and society.

• Rural development in the country which will help future

generations to lead healthy and prosperous lives.

4141

Thank you