ICMIND ANSWER SHEETS - Bharti Tele-ventures is one of India’s leading private sector telecom operators. Its cellular business, Airtel, is a leading mobile telephony brand
ICMIND ANSWER SHEETS - Bharti Tele-ventures is one of India’s leading private sector telecom operators. Its cellular business, Airtel, is a leading mobile telephony brand
ICMIND ANSWER SHEETS - Bharti Tele-ventures is one of India’s leading private sector telecom operators. Its cellular business, Airtel, is a leading mobile telephony brand
For
answersheets contact
info.answersheets@gmail.com
+91
95030-94040
Total Quality Management
CASE 01: TPM AT
MRC BEARINGS
CASE
02: Customer Relationship Management at Bharti
CASE 03: Hotel
Valuation Services ( HVS )
CASE 04: IMPLEMENTING QUALITY MANAGEMENT
SYSTEM AT HYUNDAI MOTORS
CASE 05: Supplier
Quality Audit at Tata Motors
CASE 01: TPM AT
MRC BEARINGS
MRC Bearing, the largest producer of aero-engine bearings in the
world, is located in Falconer, New York.
The company is the primary aerospace bearings supplier to General
Electric, Pratt—Whitney and Rolls Royce, as well as to the world’s leading
military and helicopter programmes Problem Identification.
In 1996, the company realized that it was behind on orders. Their customers were aggressive in their
demands for cost reductions and shorter lead times. The majority of their maintenance hours were
dedicated to emergency work orders. The
company decided to implement a TPM programme in order to achieve a
turnaround. After the implementation of
TPM, the company was able to achieve a 98 per cent decrease in unplanned
maintenance hours.
TPM Journey
The company started its TPM programme by focusing on a small area,
which was critical to processes but was experiencing chronic problems. At first, a lot of people were skeptical and
not really interested in getting involved with the TPM activities. The company had a core team of people who
were excited about TPM. It also enlisted
the help of people outside the organization to work with the core team.
TPM at MRC began with a weeklong TPM event. It startd by cleaning,
insecting lubricating and performing corrective work on a piece of machinery.
Once a machine was cleaned, it would be painted. At first, people were reluctant to
participate in TPM events and ridiculed the TPM programme as “Totally Painted
Machines.” As time elapsed, people
started appreciating the improvements brought about by TPM events. Employees who were totally against TPM
started participating in TPM workouts.
MRC formed equipment
improvement teams (EITs) to work on resolving equipment – related issues. The team initially worked on a piece of
equipment with chronic problems. The
equipment was breaking down on a monthly basis and required three or four days
each time to fix it. The team
discovered the original manufacturer had
used a sub-spec coupling on a drive unit.
The problem was solved by upgrading to the proper coupling. The problem was solved by taking the time out
to find the root cause of the failures, rather than just fixing the
symptoms. In the years following this
repair, the problem was completely eliminated.
That success showed a lot of people in the company that TPM can make
everyone’s duly life easier as well as improve productivity.
After the initial success, MRC expanded their TPM efforts to their
second facility. They created a TPM Steering Committee at their second site
and also created a policy group to
co-ordinate the efforts of both
facilities. MRC trained 10 TPM Area Co-ordinators
who undertake TPM activities for one week in each month. These TPM Co-ordinators organize TPM events
in their areas, also lead EITs and make sure the process keeps working. MRC has begun to create full-time TPM
teams. One such team was able to correct
a long-standing equipment problem. This
resulted in reducing the scrap produced by that equipment to almost zero. The areas that MRCD focused on were.
1.
Preventive maintenance
2.
Putting predictive maintenance process in
place (I.e. vibration analysis equipment)
3.
Cleaning the machines, resulting in inspection
4.
Creating standards on the equipment for
cleaning, lubrication and daily checks
5.
Collecting data on downtime
6.
Creating equipment improvement teams
7.
Creating TPM area co-coordinators
Lessons Learnt
The most important lesson learnt was that training is the key to
being successful with TPM. The company
has organized some initial TPM awareness training programmes for the
organization for both operators and mechanics.
However, looking back they could have had achieved success faster if
more training had been imparted. The
support of the top management, the union, the hard work of the people at MRC
and the support of their customers were the factors instrumental to the success
of the TPM initiative.
QUESTIONS:
1. What were the problems faced by MRC?
2. What was the solution used to address the
problems at MRC?
3. What were the attributes responsible for the
successful implementation of TPM at MRC?
4. Explain the TPM journey at MRC.
5. Comment on the statement “TPM is not totally
painted machines but taking pride in our machines.”
CASE 02: Customer Relationship Management at
Bharti
Bharti
Tele-ventures is one of India’s leading private sector telecom operators. Its
cellular business, Airtel, is a leading mobile telephony brand. Like any
telecom organization, Bharti considers information technology as a key business
enabler. According to Amrita Gangotra,
vice – president of Information Technology at Bharti, IT works as a support
system as well as a key business driver
The company has a
wide area network (WAN) in place with a mix of leased lines and E1 and E3
lines. The company extends different
applications to its dealers and partners through its extranet. The company also has procured a range of
high-end servers from Sun and HP. The
company also has a strong area network (SAN) in place because its daily storage
requirements are in tetra bytes. The main data centre is located in Gurgaon, Haryana;
Bharti has procured billing, fraud management, revenue assurance and data
warehousing software.
The
Case for CRM
During the
initial stages of its operations, the company’s systems were run manually. Only 40 per cent of customer issues were
getting resolved. The company decided to equip itself with tools that would
help in resolving 90 percent of its customer issues. The company decided to opt for a CRM solution
to manage customer expectations and provide them with innovative products and
services.
Oracle CRM
Platform
Bharti wanted to fulfill its vision of providing the same quality
of services anywhere and at any time. The company was particular that its
customers should get the same quality of service no matter which of its call centers
he or she contacts. It evaluated many
options before choosing its centralized CRM tool. The factors considered were proper workflow
automation, facilitation of knowledge sharing and integration with the billing
system. After a thorough evaluation exercise, it decided to go ahead with the
Oracle CRM platform.
Rolling out
After the company started its operations in Delhi, it acquired
many circles and sought new licenses in other circles. The CRM tool was implemented immediately whenever
it obtained a new license. However, the
company had to put in place a phased migration strategy in the acquired
circles, which had an existing subscriber base.
The migration had to be done in such a manner that the existing customer
base did not suffer. The migration was
completed in a phased manner by the first quarter of 2004. The biggest
challenge for Bharti was to have a unified process in lace. They also faced the challenge of imparting
training. The company was successfully
able to overcome to technical difficulties that it faced during implementation.
The CRM strategy at Bharti revolves around two
aspects---operational CRM and analytical CRM. Operational CRM revolves around
improving the workflow of call centres and helping them in their day-to-day
activities. Analytical CRM provides
staff with the required information on customers and is used for business
development.
The company has successfully used its CRM solution to provide
products tailor-made to the needs of its customers. Thus, customers receive more value for money. Customers now have access to different
schemes and services depending on airtime usage. Bharti has also managed to segregate its workflow
with the help of the CRM tool.
QUESTIONS:
1. Why did Bharti Tele-ventures opt for a CRM
solution?
2. What were the challenges faced by Bharti in
its CRM implementation process?
3. Discuss the strategy used by the company for
implementing CRM and why.
4. Explain the various benefit received by Bharti
after implementing CRM.
CASE 03: Hotel
Valuation Services ( HVS )
Hotel Valuation Services (HVS) was founded in1980 by Steve
Rushmore. It is the world’s leading
consulting and services organization focused on the hltel, restaurant, shared
ownership, gaming and leisure industries.
Rushmore began his career as a consultant ion the hospitality division
of a prominent New York City real estate firm.
He quickly realized that a limited body of knowledge was available to
assess the value of hotels. He founded
HVS to fill this perceived gap.
The HVS method of providing an economic study and appraisal for
hotels and motels immediately became the industry standard. HVS is focused on the hotel, restaurant,
timeshare, gaming and leisure industries.
The company has more than 300 consultants offering specialized services
through its network of 25 offices worldwide.
Studies conducted by HVS indicate that 2010 is going to be a
challenging year for the Indian hospitality industry.
Challenges for
the Hospitality Sector
The tourism industry is highly susceptible to changes in the macro-environment. The aviation and hospitality sectors are
among the first to get affected by an adverse environment and also the last to
recuperate.
The main challenges faced by the hospitality sector in India
include lack of infrastructure and facilities, lack of human resources and
training, the hotel rating system not being at par with international
standards, intense competition from global players and multiplicity of taxes.
HVS
Recommendations
HVS has made the following recommendation in order to address the
challenges faced by the hotel industry.
·
Grant hotels industry status across India
·
Include tourism as a subject in the Concurrent
List of the Constitution of India
·
Grant hotels infrastructure status under Sec
80-IA of IT Act
·
Impose a single uniform luxury tax, based on
the actual room tariff only, across all Indian sates
·
Impose uniform tax rates on rooms, food and beverages,
and liquor across the country
·
Give incentives, in the form of tax breaks, to
re-invested capital in the hotel industry
·
Extend the benefits of Sec 80-ID to other
parts of India
·
Develop a more scientific rating system to
truly benchmark hotel quality
Hotel
Rating Process
Various
approaches are used across the globe to classify hotels. The most common approaches followed are;
Registration: This involves basic level listing of properties that meet agreed
minimum standards.
Classification:
Hotels are classified into various categories based on the amenities offered.
All establishments have to follow certain minimum standards.
Grading: Hotels are
graded according to the quality of services delivered to customers. Assessment
of this nature is highly complex and time consuming.
Hotel
Rating System in India: India has been using the “Classification”
system with mixed results for over four decades; HVS recommends that the
present rating system in India should be upgraded to the “Grading” system to
enable it to employ a more discretionary approach to the process. Hotels, motels and other lodging in India are
inspected and categorized according to their products and services by the Hotel
and Restaurant Approval and Classification Committee (HRACC), a body instituted
by the Ministry of Tourism. However, the checklist used by HRACC has some
serious shortcomings. The minimum standards
are too weak and lenient. Hotels that do
not adhere to minimum standards are penalized.
However, benefits are not offered to hotels that offer services above
the minimum standards. The checklist
focuses on physical infrastructure alone and is not very effective in assessing
the quality of services.
The present
system needs a complete overhaul in order to remain relevant in the dynamic
market scenario. Safety and hygiene
should be the first parameters in the classification process. The government should focus on the safety and
hygiene parameters than on the commercial aspects of classification. The HRACC classification should be revamped
so that it provides a more accurate indication of a hotel’s quality and
services.
 |
| ICMIND ANSWER SHEETS - Bharti Tele-ventures is one of India’s leading private sector telecom operators. Its cellular business, Airtel, is a leading mobile telephony brand |
Questions:
1. What are the challenges facing the Indian
hospitality industry?
2. What is HVS? What are the recommendations of
HVS mentioned in this case study?
3. What are the limitations of the present hotel
rating system in India?
4. If you are hired as the consultant, what
measures do you suggest to imprve the present hotel rating system in India?
CASE 04: IMPLEMENTING QUALITY MANAGEMENT
SYSTEM AT HYUNDAI MOTORS
Hyundai Motors India Limite3d, a 100 per cent subsidiary of the
South Korea-based Hyundai Motor Company, started its operations in 1996. In
September 1998, Hyundai India started mass production of its well-known
hatchback “Santro.” It launched its second model “Accent” in October 1999. It started establishing its products in the
global market in 2000. It launched its
super luxury sedan “Sonata” in July 2001.
As per Hyundai India’s policy, quality simply does not mean
meeting specifications. Quality for
Hyundai India means meeting customer requirements and exceeding their
expectations. The Company also
concentrates on indirect customers and was the first to introduce
MPFI(Multi-point fuel injection) in 1998 for the small car segment, even when
the Euro II standards were not
mandatory. This case study
focuses on how Hyundai has been able to successfully adopt the automotive
standard QS9000.
QS 9000
QS 9000 is a
sector specific common supplier quality standard for the automotive industry. In 1988, Chrysler Corporation, Ford Motor
Company and General Motors Corporation came together to form the Supplier
Quality Requirements Task Force to
standardize reference manuals, reporting formats and technical nomenclature for
all documents related to supplier requirements.
In 1992, the task force harmonized the fundamental supplier quality systems
manuals and assessment tools. This gave
rise to Quality System Requirements QS 9000---a common supplier quality
requirements standard that was adopted by all three automotive companies. It is based on the ISO 9001. However, it contains additional requirements
peculiar to the automotive industry.
Today many automotive companies have adopted QS 9000.
QS 9000 defines the fundamental quality system
expectations of Chrysler, Ford, Genera; Motors and other subscribing companies
for internal and external suppliers of production and services parts and
materials. QS 9000 is a harmonization of
Chrysler’s Supplier Quality Assurance Manual, Ford’s Q-1011 Quality Systems
Standard and General Motors’ NAO Targets for Excellence and supersedes all
editions of these documents. The
benefits of QS 9000 certification
Include improved quality, improved efficiency, improved delivery
and company morale, improved internal and external communication.
The QS 9000
applies to all internal or external, potential or existing suppliers’
vendors/subcontractors of production materials, Production or service Parts,
heat-treating, painting, plating, finishing services who supply to OEM (
Original Equipment manufacturers ) customers subscribing to the QS 9000
standard.
QS 9000 is a
supplement to ISO 9000 with additional requirements for each ISO
9001. The standard has undergone two
revisions since its inception. The third
edition of QS 9000 standard comprises two primary sections. Section 1 deals with ISO 9000 – based
requirements and sector specific requirements while Section II deals with
customer-specific requirements.
QS 9000 at
Hyundai
Hyundai India was certified to QS 9000 in January 2002, QS 9000 is
a customer-driven automotive standard that focuses on defect prevention,
continuous improvement and reduction of wastage or variation in the supply
chain, development of sub-contractors, product quality, cost, delivery and
service. It is based on a preventive
methodology and uses disciplined problem-solving methods.
Benefits of QS
9000 Certification for Hyundai
After QS 9000 certification, activities were streamlined and a
focused approach to planning was established.
A team of professionals started concentrating on solving problems and
identifying potential areas of improvement.
The main benefits of QS 9000 were.
·
The attitude of workers improved. They felt encouraged to come out with more
ideas on mistake-proofing, defect-prevention, statistical analysis
of a particular activity, etc.
·
The company was able to identify potential
failures of the product and take control measures in time by adoption of
Failure Mode and Effect Analysis ( FMEA ).
·
Hyundai was able to measure the customer
satisfaction/dissatisfaction levels, whereby they were able to improve products
through process control.
·
Hyundai has been able to improve the direct
pass ratio of vehicles. The field claims
on product have also reduced.
·
Customer complaints were analysed by the auditors at length and they also
looked at the corrective and preventive action plan. By adopting QS 9000, the company has
eliminated all unrelated/waste processes, non-value added solutions, thereby
focusing only on the customer requirements.
·
Employees could relae to QS 9000, as it was
close to their work. The employees
became more proactive.
The company also realized the importance of the competence of the
certification body in implementing a standard.
The full objective of the standard can be achieved only if the
certification body is competent.
Questions:
1. Why did Hyundai decide to implement the QS
9000 system?
2. What is the difference between ISO 9000 and QS
9000?
3. Explain the QS 9000 system.
4. What were the benefits of QS 9000
implementation at Hyundai?
CASE 05: Supplier
Quality Audit at Tata Motors
Tata Motors Private Limited is a leading manufacturer of trucks in
India and India’s largest automobile company.
It is the second-largest manufacturer of passenger vehicles in the
World. The company is the world’s
fifth-largest medium and heavy commercial vehicles manufacturer and the world’s
second-largest medium and heavy bus manufacturer.
Tata Indica
Ratan Tata, the chairman of Tata Motors, had always dreamed of
building the country’s first indigenous small car. In 1995, the company announced that it
planned to build the Tata Indica, a car as spacious as the Ambassador, priced
close to the Maruti 800 and shaped like the Zen. Tata Motors had to face many challenges in
the process of designing and building the India.
Outsourcing
Tata Motors had to take its primary make or buy decisions for the
key inputs such as design, engine and transmission. Outsourcing was one of the most difficult
aspects of producing the Indica. The
company did not have the expertise either to design a car or to build an engine
for it. It had to create a supplier base
from scratch. The company decided to
shop globally for the best deals and use its own expertise to make whatever
modifications were needed. Exhibit 18.1
provides a list of components outsourced for developing the Indica.
Exhibit 18.1 Components Outsourced by Tata Motors
Sl.No. Components
Supplier
1. Five door hatch back Idea Italy
2.
Engine Institute Francais, France
3.
Assembly line Nissan’s Plant Australia
4. Presses Mercedes Benz
5.
Pistons and piston rings
India Pistons
6.
Electrical components and fuel injection systems Lucas -- TVS
7.
Steering systems Rane TRW Steering system
8.
Clutch facings and rear drum brake
linings Sundaram Brake Linings (SBL)
9.
Seating systems Tata – Johnson
Controls
10. Radiators Tata – Toyo
11.
Rear View Mirrors Tata – Ficosa
12. Front and rear bumper, dash board,
inside trims Tata – Auto
Plastics
13. Air – conditioning kits Subros Ltd.
14. Wind screens and windows Asahi Glass
15.
Fuel lines Imperial Auto
16. Differential assemblies Sona Koyo Steering
17.
Sheet metal items IBM Tools
Supplier Quality
Audit
After making the make or buy decisions, the next step was to
identify the suppliers. Most of the
parts and components were sourced locally.
Only about two per cent of the component value was secured from other
global players. Localization of the
components was the most important challenge for the company. The Indica was totally indigenous.
Tata Motors undertook supplier audits to select and monitor
suppliers during the development of the Indica.
Supplier audit is an integral part of the decision process for supplier
selection. It enables guarantees
regarding design, manufacturing, system, product, raw material and services. It also enables answering to regulatory
requirements which impose these audits.
A supplier quality audit team was formed with a view to ensuring
acceptable supplier quality, which became very critical. The yardstick employed by the company for
selecting suppliers was the ability to supply components at the negotiated
quality, cost and quantities.
The selection of supplier by the team involved
following steps:
·
An initial assessment team from Tata Motors
evaluated the supplier.
·
Self-evaluation of the supplier based on the
format provided by the company.
·
Quality system survey design validation.
·
Manufacturing validation.
·
Product Part Approval Process (PPAP) for
certifying the product quality.
Tata Motors also set up Supplier Quality Improvement Teams to
improve the vendors’ system to ensure that they produced defect-free
parts. It applied a thirteen – step
quality improvement programme covering supplier self-evaluation, through
design-validation and audit of supplier quality. Another key to the company’s
successful vendor-base was a modern system of process management. Tata Motor’s target-costing was broken up
into vendor – wise cost targets, and the suppliers had to carry out their own
value-engineering exercises to lower cost and improve quality.
Questions:
1. What were the
challenges faced by TATA Motors while selecting its suppliers for India?
2.What were the
reasons for setting up a supplier quality team at TATA motors?
3.What was the
approach followed by the supplier quality audit team?
4. What is the
difference between supplier quality audit and third party quality audit?
For
answersheets contact
info.answersheets@gmail.com
+91
95030-94040
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