MART June 2013

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LEADER SPEAK

“Main hurdle is lack of understanding of lean by most top managers who run SMEs” Saravjit Singh, CEO, 10xquality.org, worked in the Automotive Industry from 1968 to 2001. Thereafter he has been a teacher and consultant for quality management. Saravjit is fascinated by Lean and its simple and elegant methodologies for eliminating waste and achieving zero defects that have revolutionised manufacturing all over the world. He suggests that anyone interested in Lean should read the evergreen “The Toyota Way” by Jeffrey K Liker, and “The Toyota Way Fieldbook” by Jeffrey K Liker and David Meier. What is the awareness of lean concept and implementation in industrial India? Awareness and implementation of lean concepts is very high within major automotive companies like MarutiSazuki, Toyota Kirloskar, Honda, Ford, General Motors, Hyundai, Mahindra & Mahindra, Tata Motors and SML Isuzu. The key suppliers of components to these companies have necessarily implemented lean in order to supply required zero defect parts on time and at the right price as demanded by these manufacturers. Without lean suppliers it would not have been possible to implement totally lean manufacturing in the automotive industry. Automotive industry supports lean by passing on its own knowhow about lean to its suppliers on a continuous basis. This is especially true for Toyota and MarutiSazuki. Key Indian automotive component suppliers have entered into collaborations with foreign companies who have already mastered lean. These foreign collaboratorswillingly pass on lean process and practice expertise to their Indian partners. A notable example of this is the Sona Koyo group which is helped by its lean foreign collaborators. Sona Koyo’s flagship company Sona Koyo Steering Systems Limited (SKSSL) is currently the largest manufacturer of steering systems for the passenger car and utility vehicle market in India. What are the impediments of lean implementation in Indian manufacturing scenario? Main hurdle is lack of understanding of lean by most top managers who run SMEs – they can not therefore create/support lean culture, which must exist before lean

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can be implemented. Since lean has its source in automotive industry, what are the other primary sectors lean has been successfully adopted? Other large companies which manufacture two wheelers, and white good manufacturers like Samsung and LG are also implementing lean to remain competitive and supply zero defect products to their customers. Lean has also been implemented in service industries such as • Business-to-Business Cash and carry wholesalers: Best Price Modern Wholesale, Metro Cash & Carry, and Carrefour Wholesale Cash & Carry • Online retailers: Flipkart.com and Amazon.in • Fast food outlets: KFC, Mcdonald’s, and Pizza Hut Apart from the big companies, how are the SMEs in engineering and manufacturing sector has utilised lean to their advantage? SMEs, other than those supplying components to the automotive companies, have by and large not implemented lean. These SMEs do not spare the time, expense and effort required to give lean methodology and implantation training to their plant managers and process engineers. Tools and techniques of lean, such as poke yoke, have to be implemented and standardised processes for work introduced to build zero defect parts without external inspection. This cannot be done without formal training and long term support from experienced consultants.

How the gap between the academics of lean and the industry can be bridged? Academics of lean in India are not totally capable of bridging the gap. This is because most of these academics do not have the required practical experience in lean industries, as is the case of academics in Japan and western countries. Without such practical experience, it is difficult for academics to help the industry effectively bridge the gap to lean manufacturing. However, academics of lean play a vital part in creating awareness about lean through training programmes and workshops. Actual implementation on the ground is done by experienced consultants, with past work experience in lean companies. June 2013


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