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Company |
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School of Management, IIT-Bombay |
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Industry |
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Education |
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Year of Submission |
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2000 |
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Status |
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Finalist |
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| School of Management, IIT- Bombay, is an esteemed educational institution. This paper highlights the challenges faced by the rapidly growing and intensely competitive Indian automobile industry. The focus is on improving the outsourcing process. The challenge for the Indian automobile companies is to reduce costs and improve the quality of their cars to maintain their competitive advantage and combat the global onslaught. As more than 70% of the components in a car are from component suppliers, the quality of the car is dependent on the quality of the suppliers, whose quality in turn is dependent on the quality of their suppliers called the 'subcontractors'. This paper outlines the set up of a three pronged quality assurance system for the component sub contractors. This would comprise of selection of the subcontractor, subcontractor component approval process and self certification of the subcontractor. Finally, the cost of quality associated with the subcontractors should be calculated on a continuous basis. This would provide a basis for measurement and control of subcontractor quality leading to world-class quality in the automobile sector. |
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