ICQI-Lahore, 2-3 May 2011 20 years of TQM practices at Indus Motor Company Ltd. Karachi – Pakistan M. Ilyas Suri Pakistan’s 12th International Convention on Quality Improvement & 2nd ANQ Regional Conference May 2-3, 2011, Lahore, Pakistan 1
ICQI-Lahore, 2-3 May 2011 Historical background (pre-nationalization era) • A fast growing economy during the sixties [6~8% growth] • Assembly plants were set-up to produce cars, trucks, motorcycles & tractors • Mostly European products were assembled • Components & sub-assemblies manufacturing factories started to come-up sponsored by autonomous PIDC & private investors [ex. PMTF, BECO, Allwin etc] • Pakistan’s pace of development was highly rated. • Its Progress exceeded many countries of the region Victims of Nationalization [1972] • Ali Automobiles – Ford products • Ghandhara Industries – GM/Vauxhall products • Haroon Motors – Chrysler products • Kandawallla Industries – American Motors jeeps • Rana Tractors – Massey Ferguson • Batala Engg. Co. – Industrial equipment & components • Pakistan Machine Tools Factory – Automotive gearboxes & machine tools Banks, educational institutions, cement and several other units were also nationalized under ERO [Economic Reform Order 1972] 2
ICQI-Lahore, 2-3 May 2011 Re-emergence of car manufacturing industry • Many nationalized enterprises stagnated and even decayed during late seventies & early eighties. • Rapidly growing population and declining share of industrial sector • Automobile sector shackled with Government sanctions. Only tractor manufacturing showed some signs of improvement • Pakistan Automobile Corporation signed technology transfer agreement with Suzuki, Japan to start local manufacturing of Suzuki cars, vans & pick-ups in 1983 • In 1989 Indus Motor Company was sanctioned to launch its project for production of Toyota vehicles in Karachi • In 1992, after a full 20 years circle, automobile industry was unshackled paving way for several new plants to emerge. [Honda, Dewan, Master etc] Guiding Principles The promoters, Toyotas and House of Habib, had set 4 Guiding Principles for establishing the new plant in Karachi 1. Invest aggressively to build plant with the latest facilities 2. Develop culture to implement TPS for assuring built- in quality 3. Develop good labor-management relations to cultivate mutual trust & high degree of motivation 4. Enable and continue to support business partners for high quality contribution by them in terms of local contents & customer services. 3
ICQI-Lahore, 2-3 May 2011 TOTAL QUALITY MANAGEMENT Deming’s Principles : • Create constancy of purpose to improve products and services. • Be ready to adopt new philosophy • Cease dependence on inspection to achieve quality. • Try to minimize total cost by working with a single supplier rather than achieving it merely by the lowest cost suppliers. • Improve constantly and forever every process for planning, production, and The essence of TPS: service. • Eliminate waste • Institute training on the job. • Adopt and institute leadership. The Building Blocks of TPS: • Drive out fear. • Just in Time • Break down barriers between staff areas. • Remove barriers that rob people of pride in • Jidoka (autonomation) their work. • Shojinka (Flexible Workforce) • Institute a vigorous program of education and self-improvement for everyone. • Kaizen (Creative Thinking) • Put everybody in the company to work to accomplish the transformation From sand dunes to the 1 st Corolla Plot size - 105 Acres (426,500 M2) ASSY SHOP C P D TRAINI NG CENTE R 4
ICQI-Lahore, 2-3 May 2011 TEAM LEADER & TEAM MEMBER CONCEPT The word ‘Team Leader’ and ‘Team Member’ are used instead of ‘supervisor’ and ‘worker’, which gives the following benefits; • Team Leader is almost indistinguishable from the Team Members. • Interaction with a wide cross-section of Team Members and Staff.. (CHANGE IN COMMONLY USED TERMINOLOGIES) FROM TO Workers Team Members Supervisors Team Leaders, Coach, Them Us You & I We Orders Consensus making COMMON UNIFORM, TRANSPORT AND CANTEEN These are the elements that the IMC Management has most emphatically stressed right from the beginning. • Common uniforms for all staff, • A common canteen, • Common toilets and • Joint morning safety meetings. • Common Transport The manifestations of a culture that espoused no social or hierarchical differences. 5
ICQI-Lahore, 2-3 May 2011 How a Day Starts A typical day begins 10-15 minutes before the official shift time. There is a flurry of activity before the shift begins; • Cleaning of individual work places • Morning Exercises and • A quick safety circle meeting Actual production operations begins exactly on time. A view of safety circle Meeting in IMC OPEN COMMUNICATION SYSTEM There are number of meetings for a better communication such as; • Daily Safety Meeting • Monthly Production Meeting • Monthly & Weekly Management Review Meetings • Interdepartmental Coordination Meeting • Daily Shop Floor Meetings, etc. OPEN OFFICE SYSTEM • There is no cubicles or separate office rooms. • Managers, executives and supporting staff share the same space & work environment. • No walls or partitions come between them. • Easy approachability and accessibility. 6
ICQI-Lahore, 2-3 May 2011 OHBEYA ROOM Monitoring, Highlighting & Removing bottlenecks thru effective communication during meetings in Ohbeya Room for smooth Project Execution. Indus People Indus People TEAM MEMBERS MANAGEMENT (5%), above (18%) (34%) 35 (77%) above 40 below 30 below 28 (18%) (48%) between between 28-35 30-40 Average Age 26 years Average Age 37 years Secondary Secondary (16% ) (76% ) High Secondary (19% ) Graduate (44% ) Graduate High Secondary T echnical (1% ) (8% ) Post Graduate (15% ) (21% ) Education Education 7
ICQI-Lahore, 2-3 May 2011 Training Training FOREIGN TRAINING I.C.T LOCAL TRAINING • ICT • In-house trainings • On Job and Multiskill Training • 29 ICTs as on 2009-10 • Domestic trainings • AOTS • 10 more by 2012 • Apprenticeship trainings • Technical Training Training Man-hours 9,540 Man Days ��������� 1,303,423 ��������� 1,250,825 GL / TL / ATL ��������� 1,135,505 7,916 998,137 886,521 ������� 767,346 ������� 577,621 500,040 ������� Team GM/Sr. Mgr. 404,853 350,370 325 Members 318,031 297,883 ������� 272,592 238,793 257,869 220,400 352 Managers � 455 ����� ����� ����� ����� ����� ����� ����� ������ ������ ������ ������ ������� ������� ������� ������ ������� IM C T raining Centre Inaugurated in June’08 8
ICQI-Lahore, 2-3 May 2011 On-Job Training On-Job Training Safet y Torque Applic at ion AREA OF THEMES DEPARTMENT WISE THEME Vendors Weld 25 FROM 1993~2009 = 237 Paint Assy QA PPMC 21 20 Maint. PD 20 Service Parts NUMBER OF THEMES Finance Marketing 17 94 HR&T Jig Shop Press Shop CPD 15 13 13 47 11 10 46 10 10 9 43 8 8 6 6 6 6 6 5 5 5 7 5 4 4 4 3 3 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 Productivity System Quality Safety Cost Improvement 9
ICQI-Lahore, 2-3 May 2011 History of Capacity Enhancement History of Capacity Enhancement 90000 Takt Time Capacity/ Year 80000 Production/ Day 2 hrs OT daily PAI NT FACI LI TI ES 70000 EXPANSI ON, I NTRODUCTI ON OF RECI PROCATOR Launched 60000 New 8.5 Corolla 200 7.5 50000 7 7 180 6.5 TWO 144 EXTENDE 40000 SHI FT D SHI FT 5 121 130 4.2 109 SEPARATE 30000 100 53,000 HI LUX 44,000 LI NE 37,000 75 34,000 70 32,000 20000 29,000 57 26,000 20,000 18,000 38 15,000 10000 10,000 0 ‘Jun’06 FUTURE PLAN ‘Mar’05 Pre557N Mar’02 Aug’02 Jan’03 ’Mar’03 ’Aug’03 ’Oct’03 ’Jan’04 Sep’04 Vendors ’ Developm Vendors’ Developm ent ent 10
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