plenary by dr ravichandran – striving excellence through
TRANSCRIPT
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Dr. N. Ravichandran
Lean Summit - 2014
By Dr. N. Ravichandran Executive Director
Lucas – TVS, Padi, Chennai - 600050
Presentation on
Striving Excellence
Through Engaged Employee
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Dr. N. Ravichandran
Contents
1. Introduction to the Organisation
2. Changing Business Scenario
3. Our Lean Journey
3.1 Lean Journey Phase – I : 1985 – 1992
3.2 Lean Journey Phase – 2 : 1992 – 1998
3.3 Lean Journey Phase – 3 : 1998 – 2004
3.4 Lean Journey Phase – 4 : 2004 – 2012
3.5 Lean Journey Phase – 5 : 2012 - ……..
4. Process of Building Will & Skill
5. Results at a Glance
6. Conclusion
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Dr. N. Ravichandran
1.0 Introduction To The Organisation
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Dr. N. Ravichandran
6 Billion USD
100 years in the business of vehicle dealership spanning parts
distribution, parts manufacturing and two wheelers
manufacturing
Culture of customer commitment and employee involvement
Pioneer in Quality and Productivity movement in India
Two companies have won Deming Grand prize (former JQM),
three companies have won Deming Application Prize
1.1 Profile of TVS Group
TVS Group core value is “Trust, Value and Service” A century of service to the growth and development of the Indian Auto industry
• Lucas - TVS
• Sundaram
Clayton
• Wheels India
• Sundram
Fasteners
• Lucas-TVS
• TVS Motors
• Sundaram
Brake Linings
• Brakes India
Foundry
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Dr. N. Ravichandran
India‘s largest manufacturer of Auto electrical products with
four out of five vehicles plying in India using its products
Market leaders for over 50 years in India
Serves Global and Indian customers in competition with
global suppliers (Denso/Bosch/Valeo)
Specialises in high variety and low volume production
Manufactures 5 million Starters & Alternators, 3 million Two
wheeler starters, 3 million Wiper motors and Small motors
annually.
Alternators Starters Wiper motor and systems
Passenger Cars
Utility
Vehicles
Commercial vehicles
Tractors
Off highway
Two wheelers
Only company to service all market segments in India
Major Products
Applications
1.2 Profile of Lucas – TVS
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Dr. N. Ravichandran
Indian Companies Global Companies
1.3 Customer Base
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Dr. N. Ravichandran
NORTH (2)
WEST (1)
SOUTH (3)
Padi Plant MM Nagar plant
Chakan Plant
Rewari Plant
Pant Nagar Plant
Puducherry Plants
All the six plants located closer to Auto cluster
1.4 Lucas – TVS Plants
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Dr. N. Ravichandran
2.0 Changing Business Scenario
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Dr. N. Ravichandran
2.1 Forces Creating Waves of Environmental Change
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Dr. N. Ravichandran
2.2 Competitiveness in the Global Business Environment
• Fast changing Business Environment is
characteristic of 21st Century.
• Rapid pace of Globalisation & Technological
progress have changed market conditions &
competitive strength.
• Business potential depends on Quality, Speed,
Technical superiority, Service and Product
differentiation.
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Dr. N. Ravichandran
2.3 The Changing Business Environment Globalization Rise of the information economy
• Management and control in a global
marketplace
• Competition in world markets
• Global workgroups
• Global delivery systems
• Knowledge- and information-based
economies
• New products and services
• Knowledge as a central productive and
strategic asset
• Time-based competition
• Shorter product life
• Turbulent environment
• Limited employee knowledge base
Emergence of the digital firm Internet growth and technology convergence
• Digitally enabled relationships with customers,
suppliers, and employees
• Core business processes accomplished using
digital networks
• New business technologies with favourable
costs
• E-business, e-commerce, and e-government
• Rapid changes in markets and market
structure
• Increased obsolescence of traditional
business models
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Dr. N. Ravichandran
2.4 Transformation of the Business Enterprise
• Flattening
• Decentralization
• Flexibility
• Location independence
• Low transaction and coordination costs
• Empowerment
• Collaborative work and teamwork
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Speed
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Dr. N. Ravichandran
3.0 Our Lean Journey
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Dr. N. Ravichandran
1963
1984
1986
1993
1995
1997
1999
2001
2002
2004
2006
2007
2012
2015
2017
Lean Phase
3.1 LEAN JOURNEY PHASE – I : 1985 – 1992
14
Chief executing
meeting
employees in
small groups
Formation of
Product Units
with Task
Force
MUL
Operations
in India
SGA
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Dr. N. Ravichandran
Key directions for changes in 1985…..
Product
development
capability
World class
manufacturing
capabilities
Total employee
involvement
OPENING UP OF ECONOMY
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Dr. N. Ravichandran
1985-86
Visionaries' telescopic view of future..........
Mr T K BALAJI - CMD Mr R D FLINT - JMD
• Advent of MUL
• CE addressed all employees in small groups of 50 each for 52 weeks
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Dr. N. Ravichandran
Scenario in 1985
• High variety
• Low volume
• World class competition
• Need to improve product quality
• Non-competitive international prices
• Lack of quick response to customers
• Some outdated products (26% of total turnover)
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Dr. N. Ravichandran
Our Journey………….
TRADITIONAL MANUFACTURING
Accumulating
Inventories
Waiting for material to
work on
Machine
Breakdown Looking for
Tools
Parts Shortage
Defects
Rework
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Dr. N. Ravichandran
We realised that to be a winner in 21st Century,
Organisations have to be, • Global
• Innovative
• Networked
• Time based
• Vision directed
• Customer driven
• Flat and empowered
• Flexible and adaptive
• Total quality - focused
• Information technology based
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Dr. N. Ravichandran
Our Journey………….
PHASE – I (1985 – 92)
• Process to Product Layout
• Operator responsible for Quality
• De-centralisation of Functions
• Nagare Experiments
• Product Quality Improved
• Containerisation
• Improved Response to Customers
3
2
1
KANBAN
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Dr. N. Ravichandran
Factory layout Block diagram
DY
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IT
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AG
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CA
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TOOL ROOM
CUST.
DESPATCH
CENTRE
ALT
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AX
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TA
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DIS
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SIN
ES
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Dr. N. Ravichandran
Organization of Manufacturing
Work Station
Moduleeg. Yoke Module
Uniteg.
DBU
FactoryOrganisation ,
Supplier etc.
Celleg.Drive Work Station
Cell
Module
Unit
Factory
A
L
T
E
R
N
A
T
O
R
C
O
M
M
S
T
A
R
T
E
R
C
A
R
S
T
A
R
T
E
R
W
I
P
E
R
T
O
O
L
R
O
O
M
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T
R
A
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W
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P
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N
D
Y
P
L
A
NT
R
E
W
A
R
I
P
L
A
N
T
P(O)
PADI PLANT
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Dr. N. Ravichandran
1963
1984
1986
1993
1995
1997
1999
Nagare Cells
Formation
SPF
Formation
Material Flow
Management
QS 9000
SGA Lean Phase
Chief executing
meeting
employees in
small groups
Formation of
Product Units
with Task Force
3.2 Lean Journey Phase – 2 : 1992 – 1998
23
MUL
Operations
in India
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Dr. N. Ravichandran
Hirano Arrives
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COST = PRICE + PROFIT
Continuous
pressure to reduce
( by DFA,DFM, Flow
process analysis )
Market expects
decreasing prices
(Year on Year)
Stakeholders
require increasing
returns
• Waste elimination
• Process Improvement
• Discipline/Configuration
• Measure of Performance
• Team work – Trained via Five Star programme
OPERATING ROUTES
Fundamentally review and agree customer requirements for a specific product
Define the complete process for a specific product
Move towards continuous single piece flow
Balance flow , effective use of resources
Continuously improve by rigorously attacking waste
Guiding Principles
Delivering Customer Value (QCDS)
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Dr. N. Ravichandran
STEP-1 Awareness revolution:
prerequisite for Factory Improvement
STEP-2 The 5S for Factory Improvement
STEP-4 Levelling
STEP-3 Flow Manufacturing
Fle
xib
le M
an
po
we
r
Change Over
Quality assurance
Kanban
STEP-5 Standardised operations
JUST IN TIME
Maintenance and Safety
Our Journey Towards Manufacturing Excellence
Multi -process
Operations
Autonomation Jidoka
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Dr. N. Ravichandran
Kanban
E- Kanban [2- Bin system]
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Dr. N. Ravichandran
Quality Assurance
QUALITY
OBJECTIVE TECHNIQUES EXAMPLE
ZED-Q ON-LINE QC
• MAKER
CONTROL
• Cpk
• SPC
• MEASURED ‘Q’
• POKA YOKE
• TOOL MGT
• SOP
• DWM
TOOL MGT
QS9000 POKAYOKE
Our Quality Approach
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Dr. N. Ravichandran
Fle
xib
le M
an
po
wer 1985 - 95
1963 - 85
1995 - 2002
2002 - 05
Inflexible
Manpower One man – One machine
•Process type
Layout
•Product type
Layout
•Nagare Cells
Partially Flexible
Manpower One man – 3 Machines
• SPF Lines
• Linking Cells
Totally Flexible
Manpower – All Functions
• Large Cells
• Chaku-Chaku
• Kanban
Flexible
Manpower – BUs
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Dr. N. Ravichandran
1963
1984
1986
1993
1995
1997
1999
2001
2002
2004
2006
2007
2012
2015
2017
Chief executing
meeting
employees in
small groups
Formation of
Product Units
with Task
Force
Nagare Cells
Formation
SPF
Formation
Material Flow
Management
•Concurrent Engineering
• Structured design review
Integration of
island cells to
Large cells
ZED Q TQM
• DWM
•5S
•PFD/SWP
•TPM
•Poka Yoke
QS 9000
Various
Customer
Awards
•NPD Process
Standardisation
• Zero defect design
ISO 14001
TS 16949
JIT Grand
Prize
DMING
application
prize
SGA TQM / Green Phase Lean Phase
29
3.3 Lean Journey Phase – 3 : 1998 – 2004
MUL
Operations
in India
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Dr. N. Ravichandran
TQM Promotion
TQM Consolidation 1 1998 - 2004
2004 - 2007
ISO / TQM Initiation
1993 - 1998
TQM Journey
•QC Circles
•QS 9000
Lucas – TVS has grown faster after adopting TQM way
with CAGR from 10 % to 16 %
•SOP, Policy deployment
•Structured NPD process
•Deming Application Prize
•Development of in-house IT systems
•Enhancing use of statistical tools
•OHSAS 18001
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Dr. N. Ravichandran
1963
1984
1986
1993
1995
1997
1999
2001
2002
2004
2006
2007
2012 2015
2017
Chief executing
meeting
employees in
small groups
Formation of
Product Units
with Task
Force
Nagare Cells
Formation
SPF
Formation
Material Flow
Management
•Concurrent Engineering
• Structured design review
Integration of
island cells to
Large cells
ZED Q TQM
• DWM
•5S
•PFD/SWP
•TPM
•Poka Yoke
QS 9000
Various
Customer
Awards
•NPD Process
Standardisation
• Zero defect design
ISO 14001
TS 16949
JIT Grand
Prize
DMING
application
prize
• QFD
• Tech Mapping
•Reliability
engg
SGA TQM / Green Phase
DEMING
GRAND PRIZE
Lean Phase
Digital
Manufacturing
Next Generation
Manufacturing
3.5 Lean Journey Phase – 5 : 2012 - …..
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MUL
Operations in
India
EnMS
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Dr. N. Ravichandran
TQM Promotion
TQM Consolidation 1
TQM Consolidation 2
TQM Maturity
1998 - 2004
2004 - 2007
2007 - 2012
2012 …
ISO / TQM Initiation
1993 - 1998
•QC Circles
•QS 9000
•SOP, Policy deployment
•Structured NPD process
•Deming Application Prize
•Development of in-house IT systems
•Enhancing use of statistical tools
•OHSAS 18001
•Addressing diagnosis audit guidelines
•Setting up Advanced engineering centre
•Training of engineers on advanced statistical tools
•Deming Grand Prize (2012)
•Integrated NPD with customers’ NPD program
•Reliability engineering
•Spreading TQM culture to supply chain
TQM Journey
Lucas – TVS has grown faster after adopting TQM way
with CAGR from 10 % to 16 %
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Dr. N. Ravichandran
Team
Work Input Schedule
Value Added
Output
• WIP• Quality• Cost• Lead Time• Schedule
Achievement• Critical success
Factors
MO
Ps
High QualityHigh Productivity
No MudaFlexible Production
SOP
SINGLE PART FEEDING
POKA-YOKE
TOOL MANAGEMENT
ONLINE SYSTEM INTEGRATION
DYNAMIC MONITORING
SPC AUDIO ALERT
MACHINE ON WHEELS
SMED CHAKU-CHAKUAUTONOMOUS MAINTENANCE
14 Principles
TOOL LIFE MONITORING
SAFETY
Zero Delays
Zero Changeover
Zero Defects
Zero Breakdowns
Zero Inventory
Zero Waste
Zero Injury
7 Zero Philosophy
Lucas – TVS Manufacturing Systems (LTMS)
High Quality, high productivity, Muda reduction and Flexibility
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Dr. N. Ravichandran
Principle Purpose
1 Machine on
Wheels Flexible layouts
2 Single part
feeding Defect prevention
3 Tool
Management Easy traceability
4 SMED Quick setups
5 Tool life
monitoring Improve quality
6 Poka yoke Defect prevention
7 SPC Process
monitoring
Principle Purpose
1 Machine on
Wheels Flexible layouts
2 Single part
feeding Defect prevention
3 Tool
Management Easy traceability
4 SMED Quick setups
5 Tool life
monitoring Improve quality
6 Poka yoke Defect prevention
7 SPC Process
monitoring
Principle Purpose
8 Autonomous
Maintenance
Improve m/c
availability
9 Chaku Chaku Cycle time
reduction
10 Safety Healthy
Environment
11 Online
integration Defect Prevention
12 Dynamic
monitoring
Improve cell
efficiency
13 Audio alerts Defects detection
14 SOP Operational
consistency
Principle Purpose
8 Autonomous
Maintenance
Improve m/c
availability
9 Chaku Chaku Cycle time
reduction
10 Safety Healthy
Environment
11 Online
integration Defect Prevention
12 Dynamic
monitoring
Improve cell
efficiency
13 Audio alerts Defects detection
14 SOP Operational
consistency
14 Principles of LTMS
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Dr. N. Ravichandran
4.0 Process of Building Will & Skill
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Dr. N. Ravichandran
Achieving “balance” among three drivers is absolutely critical
4.1 Three Key Drivers for an Organization
Process
Technology
People
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Dr. N. Ravichandran
4.2 What makes the difference
Organisation People
Resulting in
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Dr. N. Ravichandran
4.3 People and Process
Empowerment training
QC Circles
Suggestion programs
Kaizen Events
Rewards and recognition
Employee development
Employees as citizens
Standard Work/Kaizen
JIT/ JIDOKA
A3/ VSM/ HoshinKanri
Pull based authority
Improvement &
Engagement
People Management
& Development
Process design or
Design of the work
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Dr. N. Ravichandran
4.4 Advanced Manufacturing Competency Model
Personal Effectiveness Competencies
Academic Competencies
Workplace Competencies
Technical Competencies
Management Competencies
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Dr. N. Ravichandran
Human Development
System
4.5 Lucas-TVS Culture and Policy
40
Human Resource
development cycle
Reflect on the next cycle
HRD Plans
Review HRD plans or methods
Formulate plans for OJT,
OFF OJT
Process results of HRD
Implement Human
development
Evaluate results through Feedback & interviews
Implement OJT, OFF OJT and other training programs
PLAN
DO CHECK
ACT
A System to help
implement rules for
Human resource
development
through PCs on a
PDCA cycle
• Clear evaluation
of results
• Grasp ongoing
HRD programmes
• Create database
to monitor the
progress
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Dr. N. Ravichandran
4.5 Lucas-TVS Culture and Policy
This is a Bonding Process , Continuous Exercise
Driven by Trust and Good Will, not by Contractual Relationship
Culture is built on
HR Policy :
To assist every Employee
to upgrade their Skill
to perform their task
in a manner to achieve Customer Satisfaction through Continuous
improvement
REACH TEACH
CARE
SHARE
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Dr. N. Ravichandran
4.6 Training and Competency Development
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Design Competencies Small Motors design, Wiper Blade design, High Efficiency Alternator design, Higher order
electronic design capabilities, , Brushless Motor, Industrial Embedded System.
Manufacturing
Process
Competencies
High slot Fill Stator Winding design, High Precision Lamination process designing capability,
Non-hazardous plating / coating Technologies, Assembly automation, Special Purpose Machine
Tool building (Hard Turning Computerised Test Rigs).
Methodology & Tools Manufacturing Management (LTMS), Project Management, Statistical Tools, Negotiation Skills,
Funds Management Skills, VA / VE implementation.
Special IT
Competencies
Design competencies for TIBCO products, Java platforms, Dot net platforms, Oracle database,
Networking skills, cloud computing and virtualization.
S.No Skill
Employee Basic Skill Functional Skill /Competency
1 Operator
1. ‘5’ S
2. EHS Practice
3. SOP adherence
4. Kaizen skill
1. Soldering
2. Varnishing
3. CNC
4. Cylindrical Grinding
2 Executive 1. New 7 QC Tools
2. EHS Practice
1. 3D modeling
2. PLC programming
3. Negotiation skills for marketing
4. DOE
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4.7 HRM – Prime Activities
Customer Orientation (Both Internal / External)
Clarity of Role / Responsibility of people
Policy Deployment to align all functions (Team Work)
Raising the Skill level of Employees
Promotion of Creativity through structured ‘Total Employee Involvement’
Processes
Quality in all processes
Continuous Improvement
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4.8 Total Employee Involvement
We provide opportunities to employees to use their creativity
and involve them in improvement activities.
Forums available are :
Small Group Activity (QCC) - Operators
Quality Improvement Team - Engineers / Officers
Voluntary Work Team - Operators, Engineers, Officers
Suggestion Scheme - Individual Operators
Post-TQM status - Improvements in
SGA (QCC) - More No. of Circles
Quality Improvement Team - Structured method
Voluntary Work Team - Unique and a New Initiative
Suggestion Scheme - High level of participation
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4.9 TEI - Promotional Activities
Top management involvement in presentation
All round communication
Prompt processing of projects/ suggestions
Publicity through display of photographs, coverage in house magazine
Opportunity to share knowledge with other companies
Rewards, continuous training on QC tools, QC Story
Nominations for State, Regional , National and International conventions
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4.10 TEI - Promotional Activities
Employees participate in SGA and Suggestion schemes and bring in lot of improvements
Lucas TVS teams awarded at ICQCC-2007 in China
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Suggestions = 20162 Total Teams = 225
Improvement activities done thru Kaizens, Suggestions, SGA and VWT (Last 10 Years)
Kaizen = 7500 SGA = 5482 Voluntary work team
= 22000
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4.11 Communications
Title of Communication Type For Whom Frequency
Inspire In-House News Letter All Employees Quarterly
Knowledge Net Email – News Letter Management Staff Monthly
SHE Mail Email – News Letter Management Staff Monthly
Circular Notice All Employees As required
Current Events News paper cutting All Employees As required
Meeting Address by MD All Employees Yearly
Founder’s Day Celebration All Employees Yearly
Republic Day Celebration All Employees Yearly
SGA Convention All Employees Yearly
Insertion in Pay cover Monthly News All Employees Monthly
Circular Industry Trend and Business Performance All Employees Quarterly
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4.12 Motivation (Involvement, Engagement & Family)
Contribution to Employee’s family and Society
• As a good corporate citizen, the company promotes CSR activities and sustains bondage
• with the society.
Family’s welfare
• Medical policy’s scope is enlarged to family members.
• Family relief fund extended to family members.
• Master health checkup for employees’ spouses is introduced.
• Pre-Retirement counseling sessions are organised on Health and Financial planning.
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4.13 Sunday Voluntary Work Team
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1) Industry Institute interaction
• Lucas-TVS has been constantly improving this initiative
to benefit students and institution.
• Close Interaction with Premier Institutes across India
(IIT’s, Anna University and SASTRA University)
• Top Executives are members in various academic
councils
2) Education
• Support to education of ‘Underprivileged’ is
continuously extended.
• Academic institutions like CPAT-TVS, Manjakkudi Arts
and Science college are continuously supported.
• National centre for industrial harmony (NCIH), a centre
for propagating and training on industrial harmony, is
duly supported.
4.14 Corporate Social Responsibility
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4.15 Corporate Social Responsibility
ED at Lal Bahadur Shastri National Academy of
Administration, Mussoorie addressing senior
members. A TQM Program Organised by the
Government of India
Address to students by ED of
Lucas - TVS on TQM at Anna University – TVS
Center (AU-TVS)
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4.16 Corporate Social Responsibility 1) Contribution to employee’s family
welfare
• Educational scholarship
• Medical benefits
• Family day Function and celebrations
• Employee’s children summer camps
2) Health
• Master health check up for temporary
workmen and their family
• Medical camps for local public
• Support to poor and needy
• Provision of civic amenities
3) Relief measure
• Contribution to government relief fund for
rehabilitation
• Helping the poor affected by recent
Tsunami and cyclones
Harmony with the Society, Bonding Relationship
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5.0 Results at a glance
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210
35 62 2.4 (16 ppm)
40 61 12
Benefits achieved so far in Lucas-TVS [Base 2002]
258
100
Index
[2013-2014 Results ] 54
Increase
Decrease
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Deming Application & Grand prize
Mr Hiroshi Okuda, Chairman, Toyota Motor Company, presenting the
Deming Application Prize to Mr T K Balaji, Chief Executive and Managing
Director, Lucas-TVS Limited, Padi, Chennai 600 050, on Tuesday, 9th
November 2004, at the Keidanren Kaikan Building in Tokyo, Japan.
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Demin Application Prize - 2004
- 2012
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6.0 Conclusion
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We Need a Mind Change
Move From Screen to Scene
Touching
Key board
Mouse
Mobile
Touch & Feel
People
Product
Process & Customer To
(Especially for manufacturing industry)
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Cultural Change
A/C Culture AC Achievement Culture
PC Culture PC Performance Culture
Information carrier Culture IC Improvement Culture
Argument Culture AC Alignment Culture
Cell Culture (Cell Phone) CC Cell Culture (Natural Group)
Talk Culture TC Target Culture
Fault Culture FC Focus Culture
Defect Culture DC Distinction Culture
Waste Culture WC Wealth Culture
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Vision without action is merely a dream.
Action without vision passes the time.
Vision with action can change the world .
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Thank You
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