Sundaram Clayton: Winning the Deming Prize
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Case Details:
Case Code : OPER010
Case Length : 11 Pages
Period : 1998 - 2002
Organization : Sundaram Clayton
Pub Date : 2002
Teaching Note : Available
Countries : India
Industry : Automobile Components
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Background Note Contd...
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SCL has a full-fledged R&D center that enables design, development, simulation
and testing processes of products. By focusing on R&D, the company was able to
substitute its imports by its indigenously developed components. SCL was also
able to indigenously manufacture some components for the export markets. These
initiatives were expected to help the company achieve its goal of becoming the
leader in the automotive air braking business in Asia.
In spite of the slump in the automobile sector during the late 1990s, SCL
registered improved revenues year after year between 1998 and 2000 (Refer
Exhibit I for the company's financial performance summary). Industry analysts
largely attributed the company's success to its focus on quality.
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According to TVS sources, the group as a whole had always aimed at
competitiveness without compromising on quality. This belief was proved when
the company adopted Total Quality Management (TQM)2
in all its manufacturing companies, including SCL. SCL followed the core
principles of the TVS group - Quality, Reliability and Service. Quality
measures at SCL were not only applicable to the product but also to systems,
operations and processes at all levels of manufacturing.
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As a result
of its company-wide quality control over the years, the company won the
Deming Prize for CWQC (Company Wide Quality Control) in 1998. SCL was
the first Indian company and the fourth non-Japanese company to receive
the prize in the 50-year history of the award.
About The Deming Prize
One of the three highly recognized and coveted quality awards in the
world,3 the Deming Prize was
established in Japan, in 1951, by the Union of Japanese Scientists and
Engineers (JUSE)... |
Excerpts >>
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