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 1

Quality Thirty years ago…. A topic of conversations a tool of company image ….. and an expense but not mainstream business strategy 2

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 3 Genesis of Maruti

Quality journey Indian component industry today: – $ 40bn industry – Indian MNCs – 12 Deming awards – 3 JIPM awards 4 SMEs are the backbone of the Indian manufacturing industry Share of value add

5 Quality journey: Customer satisfaction J.D. Power study

Need to do more… – Improve quality levels – Upgrade smaller & tier-2 suppliers – Build Scalability through robust Quality systems 6

Enablers for quality at the organization level 7 Quality people Investment in technology Investment in capability building Profitability Willingness to equity dilution Top level commitment & culture Investment in superior equipment Financial capability CEO’s mindset Access to Capital

8 SMEs Affordability Policy & Procedural hassles Economies of scale Energy deficit Infrastructure constraints Taxation Determinants of profitable growth

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 9 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

10 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…