Date:21/04/2006 URL: http://www.thehindubusinessline.com/2006/04/21/stories/2006042103120300.htm

Back `Go lean to be competitive'

Our Bureau

Productivity Summit 2006 inaugurated in Chennai.

Facts at a glance
China is currently the global powerhouse when it comes to manufacturing.
If India is to catch up, it must be able to offer the same price incentive that China does, which is currently up to 30 per cent less than global standards.
China scores over India, at a ratio of 9:1 in the steel industry, 4:1 in CTVs, 3:1 in refrigerators, and 4:1 in washing machines.

MR VENU SRINIVASAN

Chennai , April 20

Lean manufacturing is the way to go for manufacturing industries, according to Mr Venu Srinivasan, Chairman and Managing Director, TVS Motor Company Ltd.

Speaking at the inauguration of Productivity Summit 2006, a three-day seminar organised by the Indian Machine Tool Manufacturers' Association (IMTMA), he said China is currently the global powerhouse when it comes to manufacturing, and if India is to catch up, it must be able to offer the same price incentive that China does, which is currently up to 30 per cent less than global standards.

He gave examples where China scores over India, at a ratio of 9:1 in the steel industry, 4:1 in CTVs, 3:1 in refrigerators, and 4:1 in washing machines.

Continuous improvement

India must look to maximise production capacity, and reduce costs due to wastage. Lean manufacturing, a business performance improvement tool that focuses on enhancing quality, cost, delivery and people, makes continuous improvement possible, he said, citing his own experience with its implementation in Sundaram Clayton and TVS Motors as an example.

Currently, about 150 companies in the automobile industry use lean manufacturing, but it is yet to permeate other areas. Mr Srinivasan suggested that in verticals such as textile, where India is quite big, it should be implemented. The manufacturing industry in India must also look to leverage its advantages, its large domestic market, good conditions in terms of raw materials and skilled labour, and the quality focus.

Some of the hurdles that the country faces, on the other hand, include the lack of scale, and the low investment being made in technology and infrastructure.

Summit features

Over 450 delegates from about 100 companies registered for the Productivity Summit 2006, according to Mr C.P. Rangachar, President, IMTMA. Titled "Unleashing the Power of Productivity in Metalworking", the summit aims at bringing various entrepreneurs to one location and interacting with them on how to optimise productivity in the industry.

Mr Rangachar said the summit includes the IMTMA-Siemens Productivity Championship Awards, given to companies to acknowledge innovativeness in attaining the highest level of productivity. The event also includes technical sessions in areas such as productivity metrics, reducing idle time, quality route to productivity and `Cross Fire', a panel discussion.

The summit also features a concurrent exhibition, `Productivity Shop', in which 20 companies willhighlight recent innovations in enhancing and supporting productivity in the metalworking industry.