How has the global manufacturing industry evolved, according to you, in the last ten years in terms of technology adoption, market expansions, strategic developments, and quality excellence?
In the late 1980s, the manufacturing industry took the lead in introducing Quality Management Systems, out of fear that overseas customers would not purchase from them unless they had an ISO 9001 against their name. So they hastily put together a system, saying what they do; and thereafter doing what they said. Obviously, they did not get the promised results. The primary reason for this surprise being that they had not read and understood the guidelines documented in ISO 9004. So, chronic problems persisted and fire-fighting continued on the symptoms of problems. The stage was set for including quality goals into business strategy through a Jack Welsh version of Six Sigma. Once again manufacturing and service organisations faltered. They diluted the power of Six Sigma to mere Quality Circles. Another missed opportunity to 'manage for quality
Finally, came the Business Excellence avataar. The primary focus was on 'quality of management'. Manufacturing organisations were again the first to embrace the CII Exim Business Excellence Model and the IMC Ramkrishna Bajaj National Quality Award based on EFQM and Baldrige criteria respectively. Most organisations entered the arena only for the Award, and not for the model of excellence underlying the criteria. The performance results have been disappointing.
The sterling examples of manufacturing units adopting Business Excellence Models are in the House of Tatas and the Aditya Birla Group. Each has a customised Business Excellence Model. The roles of leadership, strategy and customer focus have made the difference.
Which are the breakthrough technologies and management concepts that are shaping manufacturing operations and thereby businesses in the present times?
The role of IT in manufacturing is no longer a choice. in my view, organisations that are focusing on the quality of the most variable factor - workforce - are harvesting results. The greatest cost of poor quality in a manufacturing unit is traceable to mismanagement of the workforce. IT solutions are available to remedy the cause.
Please suggest top five change drivers for the global manufacturing industry
evolving into its future. Drastic reduction in cycle time of processes; drastic reduction in cost of poor quality to double the profit without capital investment; habit of left-brain quality improvement; habit of right-brain process innovation; cross-industry benchmarking of best practices.
With constant pervasive changes in technology & market requirements, how can organisations design/plan the change management process and product development strategies?
Adopt PLM solutions globally. The auto sector has benefitted through effective and efficient implementation of PLM. More specifically, in the design processes, as well as supply chain processes.
How are the transforming/ emerging economies and changing trade relations likely to influence the manufacturing sector growth globally?
Low labour cost advantage in emerging economies will not be sustainable. Quality will not be negotiable. Therefore, quality engineering and reliability engineering must be brought centre-stage for survival and success. There must be a conscious shift to the triple bottomline - planet, people, profit.
What in your opinion can be defined as the key to (process-) success in modern manufacturing companies?
There should be only three core competencies in modern manufacturing companies that should NEVER be outsourced: ability to understand customer needs; ability to translate customer needs into product designs and process designs; ability to outsource capable processes.
"Quality engineering and reliability engineering must be brought centre-stage for survival and success"
CREDITS: Suresh Lulla, Founder & Mentor, Qimpro Consultants Pvt. Ltd.