Ratan Tata's Process Management and Industrial Engineering - Process Design, Improvement, Excellence and Perfection.
"Break down your company or department's work into sub-processes and ensure each one is perfected. Build processes and strong quality control systems. The final result will only be excellent if the elements feeding into it are perfect." -Uttar Pradesh social welfare minister Asim Arun, a former IPS officer.
How the Tata group transformed itself after 1991
Tata executed a programme of transformation after liberalisation through four welding mechanisms: The setting up of the Group Executive Office (GEO), a common and unified brand, an explicit code of conduct that had been implicit all the earlier years and a set of operating requirements for companies that used the brand.
Ratan Tata remarked, “We have yet to seek excellence in all that we do. We hang a picture slightly crooked and live with it for 10 years; this should bother us the first time we see it and keep on bothering us until it is set right.”
The Tata group adopted the Tata Business Excellence Model (TBEM), based on the quality improvement framework developed for the Malcolm Baldrige National Quality Awards. In February 1995, the first batch of assessors met at the Tata Management Training Centre for in-depth training on the Baldrige model. They assessed 12 Tata companies and the average score was an abysmal 215 out of a maximum score of 1,000.
The genesis of the TBEM lies in the JRD QV Award. It was launched in 1994. The award is based on the Malcolm Baldridge National Quality Award that was started in US in 1988.
7 criteria that constitute the TBEM: Leadership, Strategic Planning, Customer and Market Focus, Information and Analysis, Process Management, Human Resource Focus, and Business Results. Each of these criteria has a number of points attached to it, with all of them totalling 1,000.
A network of 80 quality champions was developed across the Tata Group, with each champion representing one company. A team of JRD QV examiners was inducted and trained for evaluating the applications and certifying them through an examination.
The process-orientation as well as quality-consciousness have been the prerogative of a few of the Group's companies like Tata Steel, Tata Engineering, and Titan Watches. In fact, the reason that Tata Steel is way ahead of the others is that its cycle of improvement started as far back as 1991.
Jamshed Daboo, 48, CEO, Tata Quality Management Services (TQMS).
Daboo personifies the change. As a Tata Administrative Service graduate, he joined Titan in 1986, and was moved to the Group's Mumbai headquarters in October, 1998. There, he and a team of 5--4 pulled in from other companies and 1 hired externally--set up TQMS as a division of Tata Sons. This is the body that will drive the TBEM, monitor the application process, and train and certify the examiners. The TQMS will also function as a conduit for sharing the knowledge and best practices across the Group. For instance, it is putting together a series of Pretty Good Practices, culled from group companies. The first one focuses on how certain measures are used to drive performance. One example is the New Product Introduction Process: how it is measured, and how it can be improved. The second in the series will focus on customer complaint management.
The TQMS is given focus by a Group Executive Office (GEO), formed in October, 1998, that Daboo reports to. The GEO was the culmination of structural changes at the helm of the Group, suggested in part by the famous McKinsey report. The report, submitted in early 1998, warned that the Tata Group did not have an efficacious structure or process in place for macro-management and group-wide strategic planning
McKinsey report. The report was submitted in early 1998.
The McKinsey report recommended that the Group focus on its core competencies and improve operational efficiencies. One of the responses to this was the GEO, and a closely-guarded list of businesses and companies that are to be divested. The rest are grouped into 7 business sectors: materials, energy, chemicals, engineering, communications and information systems, services, and consumer goods.
While the board of Tata Sons continues to be the Holy Grail, the executive responsibility for these 7 businesses lies with the GEO that serves as a strategic think-tank for the Group. It consists of Ratan Tata and 3 executive directors: R. Gopalakrishnan, Ishat Hussain (Senior Vice-President and Executive Director, Tata Steel) and A. Soonawala (Group Finance Head).
Company-level structures are similar. An apex group at the top, a core group at the second level, and task-specific functional teams and a corporate quality head that has overall responsibility for driving the model. At Indian Hotels, the Apex Quality Council drives the initiative from the helm, but the ground implementation is done through 150 cross-functional teams. For instance, at the Taj Palace, Delhi, one of the teams consists of the Executive Chef, Credit Manager, and the Materials Manager. Tata International has a similar format with the 6 business councils reporting to an apex body.
In larger organisations, such as Tata Steel, the range of the structure is wider. Tata Steel set up an Apex Quality Council, chaired by the Managing Director, and staffed by vice-presidents and senior general managers. The council decides broad policy, and meets quarterly to review progress, but the deployment is done by 9 quality councils, chaired by the vice-presidents, and the 36 quality sub-councils, chaired by divisional heads.
Ratan Tata Interview in http://archives.digitaltoday.in/businesstoday/20000322/cover.html
We really wanted the companies to improve the fabric of the enterprise. We are looking at companies being creators of excellence--in the manner in which you conduct your business, the way you treat your employees, the way you conduct business, and the way you treat your stakeholders.
The first winner of the JRD Quality Values Award for performance within the TBEM framework was Tata Steel in 2000. TBEM set the tone and created the foundation for a critical transformational exercise in the group.
Tata Group Innovation Forum was created in 2007, and annual Tata Innovista Awards were started. The group’s increasing number of patent applications reflected the rapid progress that the group was making.
http://archives.digitaltoday.in/businesstoday/20000322/cover.html
2012
Dec 2012
https://www.livemint.com/Companies/n47iePUboPWvCqG5FM8IVK/Ratan-Tata-A-journey-in-four-stages.html
November 5, 2012
Columbia Business School’s W. Edwards Deming Center for Quality, Productivity, and Competitiveness recognized the winners of the third annual Deming Cup at a dinner reception on campus on Tuesday, October 23.
This year, the Deming Center awarded the Cup to two recipients — Terry J. Lundgren, chair, president, and CEO of Macy’s, Inc., and Ratan N. Tata, chair of Tata Sons Limited.
University Provost John Coatsworth stated, “The Deming Cup has become the Pulitzer Prize of operational excellence.”
“Lundgren is a role model for his company and the industry, serving as a true leader in continuous improvement and operational excellence, the Deming Center’s area of focus,”
Henry Kissinger, pointed out that Tata has successfully guided multiple companies, including Tata Motors and Alcoa, to business excellence in both India and globally by leveraging the principles of W. Edwards Deming.
Kleinfeld of Alcoa said. “Ratan is a rare kind of leader — just as he is deeply committed to performance and operational excellence, he lives the important values of integrity, respect, and continuous learning,”
The Deming Cup grew from the center’s drive to highlight the achievements of practitioners who adhere to and promote excellence in operations. This award is given annually to individuals who have made outstanding contributions in the area of operations and have established a culture of continuous improvement within their respective organizations.
2015
2015
Kulamani Biswal NTPC Director (Finance) has been inducted as Honorable Fellow of World Academy of Productivity Sciences (WAPS)
Biswal has also been appointed as Chairman of Governing Body WCPS, India.
Ratan Tata was awared the fellowship earlier
5 golden rules by Ratan Tata to make your workplace efficient post covid-19
TIMESOFINDIA.COM / Jul 25, 2020,
Be available for your employees
Ratan Tata believes, “As a business leader, you have to face your shareholders. And then, there are the people who have to deliver the goods and work for you, you need to be there for them as well.”
Create empathy
If your employees are as concerned about the workplace as they are for their home, it will lead to an empathetic relationship which eventually translates into better results, productivity and profits.
So work toward building "mutual empathy" - management understands the thinking and feelings of employees and workers understand the thinking and feelings of managers and create a comfortable environment for your employees to come to office or factory everyday and work.
Inspiring Quotes by Ratan Tata
No comments:
Post a Comment