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Sona Koyo

IMPLEMTATION OF TOTAL QUALITY


MANAGEMENT
About the company
Sona Koyo Steering Systems Limited (SKSSL)
•Established in 1985, it is the flagship company of The Sona Group
•They are currently the largest manufacturer of steering systems for the
passenger car and utility vehicle market in India.
•Its collaborator and partner, JTEKT Corporation, is the market leader in Japan
and in the recent past announced a merger with Toyota Machine Works.
•Post this merger, JTEKT will become the world's largest steering systems
manufacturer. The company also has a technical collaboration with Mando
Corporation, Korea.
•As part of Sona Koyo Steering Systems Ltd's (SKSSL) globalization strategy,
the company has acquired a position in Fuji Autotech France, SAS, the 4th
largest steering system supplier in Europe. Via Fuji Autotech, The Sona Group
footprint extends to Eastern Europe and South America.
Sona Koyo's customers include major vehicle
manufactures in India such as
-Maruti Suzuki,
-Toyota,
-Hyundai,
-Tata Motors,
-Mahindra & Mahindra, and
-General Motors and

Independently, as well as through its network of overseas


joint-venture partners, it exports high quality precision
products to USA, Europe and Japan.
Case Study
• Sona koyo with the market share of 50% is the largest
manufacturer and leading supplier of-
Hydraulic power steering systems
 Manual rack and pinion steering systems
 Collapsible ,tilt and rigid steering columns for passenger
vans and MUVs.
•In 1999-2002 the net profit of the company came down to a record
low .
•Implementation of TPS systems.
• Capable of supplying products just in time to the customers.
•TQM with emphasis on “learning through experiencing”.
•Policy deployment exercise with management for objectives (MFO).
 Total Productivity Maintenance: “Continuously improve all
operational conditions, within a production system; by stimulating
the daily awareness of all employees

 Quality Management System: can be expressed as the


organizational structure, procedures, processes and resources
needed to implement quality management.”

 Environmental Management System: It includes the


organisational structure, planning and resources for developing,
implementing and maintaining policy for environmental
protection.
1. How has the application of JIT /TPS helped Sona Koyo
reduced the number of defects?

• JIT implicitly assumes that input parts quality remains constant over time

• The main objectives of the TPS are to design out overburden (muri) and
inconsistency (mura), and to eliminate waste (muda)

• TPS organizes manufacturing and logistics for the component manufacturer,


including interaction with suppliers and customers

• Increased emphasis on supplier relationships. A company without inventory


does not want a supply system problem that creates a part shortage. This makes
supplier relationships extremely important

• “Poka-yoke” or "mistake-proofing“ - helps an equipment operator avoid


mistakes. Its purpose is to eliminate product defects by preventing, correcting, or
drawing attention to human errors as they occur
2. Number of warranty returns have now increased
drastically compared to just after implementing TQM.
What reason can you attribute to this deterioration?

AREA BEFORE ‘97 AFTER ‘03 NOW ‘04


WARRANTY 3800 ppm 1597 ppm 3209 ppm
RETRUNS

• Complacency after achieving good results brings the


performance down - Company has to set even higher goals

• One has to continuously search new ways to keep people


energized

• Improvement technique are very simple to understand,


persistence in implementation is important.
3. The Deming Award has catapulted Sona Koyo into the
radar screens of global auto majors looking for a low cost
but world class suppliers. What lessons can Indian auto
component suppliers can take from this revelation?

• Customer’s focused approach – implementation of QFD


• Regional to global supplier.
• Increased in shortage of auto components.
• Creating niche in some special auto parts.
• Export-oriented approach-building Infrastructures to service
overseas clients
• Developing its own product and production technology helps in
improving competitiveness
Thank You…!!!
Presented By –
Abhishek Tiwari, 2K91-IB-01
Devkanth Rath, 2K91-IB-09
Pranav Pradhan 2K91-IB-33
Raviranjan Kumar 2K91-IB-42
Prashant Kumar 2K91-M-63
Anil Bist 2K91-M-09