WORLD CLASS ENTERPRISE” “JOURNEY TOWARDS WORLD CLASS ENTERPRISE”

SITUATION ANALYSIS CHALLENGES OF GLOBAL MARKET

C T Q HOW TO MEASURE COMPETITIVENESS IN GLOBAL MARKET?? • Cost : Minimum • Time: Shortest (order taking to delivery) • Quality: World class C T Q COMPETITIVE QUALITY

But, in real life is it possible ? THE MANAGERIAL CHALLENGE? To make more profit the challenge is to • Reduce COST • Reduce lead TIME • Improve QUALITY IDEAL SITUATION • Best quality raw materials at minimum price • Your people and processes produce world class quality • Your products are picked up by customers at your price But, in real life is it possible ?

HOW TO ENHANCE COMPETITIVENESS?

ROADMAP TOWARDS EXCELLENCE…

HOW TO MOVE UP THE LADDER?? Level 1~2 Level 2~3 Level 3~4 Level 4

“OVERVIEW OF LUCAS-TVS LTD”

CUSTOMER PHILOSOPHY GROUP OVERVIEW “A CUSTOMER IS THE MOST IMPORTANT VISITOR ON OUR PREMISES HE IS NOT DEPENDENT ON US WE ARE DEPENDENT ON HIM HE IS NOT AN INTERRUPTION IN OUR WORK HE IS THE VERY PURPOSE OF IT HE IS NOT AN OUTSIDER ON OUR PREMISES HE IS A PART OF IT WE ARE NOT DOING HIM A FAVOUR BY SERVING HIM HE IS DOING US A FAVOUR BY GIVING US AN OPPORTUNITY TO DO SO” M K Gandhi GROUP OVERVIEW • Started in 1911 • India’s largest auto component manufacturer and exporter • TVS group sets standards as market leaders • USD 2 Billion, 32 companies, 25 product lines, 25000 employees

CORPORATE CULTURE • CUSTOMER FOCUS • EMPLOYEE INVOLVEMENT • INNOVATION • ETHICAL PRACTICES INNOVATION • Only manufacturer to offer complete range to all segments • Lowest Cost Producer • In the last 40 years supplied products in most of the Vehicle Launches in India ( 40 million rotating machines supplied) • Biggest R&D centre in India for Auto electrical • First to introduce Cellular Manufacturing in India

• WORLD CLASS COMPETITION • NON-COMPETITIVE INTERNATIONAL PRICES MID 1980’S SCENARIO AT LUCAS TVS & REALISATION FOR 21st CENTURY • HIGH VARIETY • LOW VOLUME • WORLD CLASS COMPETITION • NON-COMPETITIVE INTERNATIONAL PRICES • NEED TO IMPROVE PRODUCT QUALITY • LACK OF QUICK RESPONSE TO CUSTOMERS • SOME OUTDATED PRODUCTS (26% OF TOTAL TURNOVER)

KEY DIRECTION CHANGES IN 1980’s

Well Established Engineering Facilities Over 60% of Lucas-TVS revenues are based on products developed in-house Product Development Capabilities Lucas-TVS follows established National, International and Customer-based standards in product testing Advanced Engineering at Lucas-TVS Lucas-TVS is focusing on developing its technology to maintain its leadership position

KEY TECHNIQUES • PRODUCTION FLOW ANALYSIS • RUNNER, REPEATER, STRANGER ANALYSIS • PRODUCT STRUCTURE TREE • INPUT/OUTPUT CHART • SIMULATION • FLOW CHART • PROCESS CAPABILITY STUDIES • DMCP/DMUS ANALYSIS

JOURNEY TOWARDS MANUFACTURING EXCELLENCE

CONTINUOUS IMPROVEMENT TQM FUNDAMENTALS CUSTOMER FOCUS PROCESS MANAGEMENT TQM & HR CONTINUOUS IMPROVEMENT

Customer Focus Process mgmt • CUSTOMER DEFINES QUALITY - Must be Quality Attractive Quality • CUSTOMER CONSCIOUSNESS - Next Process “is my Customer” • ORGANISATIONAL MARKETING • PROCESS ORIENTATION • PROCESS MAPPING • Use of “SOP’s” TO MAINTAIN PROCESS • PROCESS IMPROVEMENT Continuous Improvement TQM & HR •TRAININGS TEAM WORK CFT QUALITY CIRCLES ROUTINE MANAGEMENT PDCA APPROACH TO WORK

RESULTS IN TERMS OF QCDM BASIS

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