Successfully Conceived and Implemented “Six Sigma as Strategy” to Transform Perennial Sick Division into Turning Not Only to Earn Profit, But to Achieve Business Excellence Performance in Crompton Greaves Organisation | Chapter 8 | Insights into Economics and Management Vol. 1

 In the 1970s, Crompton Greaves had its production plants based only in Bombay, at Worli and Kanjur places, a multi-product company. Since early 1960, its Fan Manufacturing Unit has been located in Kanjur, Bombay, within the Consumer Product Community. In those days, under the License and Permit Raj scheme , the Government of India did not allow production to go beyond 125% of the installed capacity. As Market Leader, Crompton Greaves had held the country's No.1 spot and so decided to retain its market share with increased product volume. Partnering, therefore, with Goa Govt. In 1985, a Joint Venture was formed under the name Goa Electrical Fans Ltd (GEFL) for Manufacturing in Ponda, Goa. Crompton Greaves Bombay will purchase all that is produced under this arrangement. GEFL Unit and its brand name on the market. For the next 6 to 7 years, the unit earned respectable income. For reasons known to them later, Govt. Goa removed its interest in the joint venture. Thus, the Manufacturing Unit became part of Crompton Greaves and became one of the Consumer Product Company Divisions. This Division dropped into losses during this time. In the next 3 to 4 years, management tried several tactics to stop losses. Such attempts, however, have not produced any substantial results. It was at this moment that Mr. Mukherjee, my senior President of Corporate R&D and Efficiency, proposed this assignment to try my strategy in this Division to build a turnaround. I chalked out behind me with previous experience in product awareness and manufacturing experience to introduce "Six Sigma as part of the Quality Strategy" as rapid and lasting results were expected. I developed step-by - step strategies and set the execution on a fast track. The Goa Division rewrote the past of not only earning high profits after 2 years, but also showed a paradigm shift by excelling in Divisional results during the entire round. Moreover, as response time was reduced, export order inputs doubled, earning respectable profit and beating the past tradition of incurring losses.

Author (s) Details

Gururaj Kulkarni
Kirloskar Electric Co., Bangalore and Hubli, India, Crompton Greaves Ltd., Mumbai, India, Prince Containers Pvt. Ltd./Prince Multiplast Pvt. Ltd. Mumbai, India, JASANZ (Joint Accreditation Scheme for Australia and New Zealand), Canberra, Australia and Quality Council of India at National Accreditation Board for Certification Bodies, New Delhi (based in Mumbai), India.

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