Improving Quality

Maruti measured the relative quality of dispatched vehicles on a random, daily basis through a
Quality index Audit.

The following measures were introduced:

Tracking surveys and direct customer contact in order to understand the problems faced
by customers.
Full-time task forces for improvement in initial quality study problems and departmental
cross-functional teams to work on defined problems with challenging targets
Quality gates at various stages to identify and correct defects immediately
Pokayoke (Fool Proofing) a system of checks to prevent defects arising from human
errors
Pica Pica system to prevent incorrect fitting of components

Key Ideas implemented to improve Quality

Maruti deputed its engineers to suppliers plants to help improve quality. In 1995, Maruti introduced
a cluster approach vendors were grouped together, trained in quality management and assisted in
obtaining ISO 9000 certification. Vendor companies also shared ideas for improvement with each
other. It also helped vendors obtain QS 9000 certification.

Then, in 2000, Maruti implemented TPM (Total Productive Maintenance) in its vendor clusters.

Procedures for implementing TPM

Mark Optimal Quantity

Strive for dramatic reductions, not marginal improvements
Use of worn out as excuse for breakdown should be avoided
Track cost reduction for every piece
Use conveyor belts for small die changes and trolleys for big dies reduction in tool
change time
Fix productivity targets for each machine and set strict deadlines

As a result of the measures introduced

Average number of effects per vehicle Fell from 2.35 (1999-2000) to 0.45 (2001-02)
Average defect per vehicle fell by 80% in 2 years
Defect free vehicles Rose from a mere 19.5% in 2000 to 87% in 2003
In process rejection cost per vehicle declined by 55% from 2002 to 2003
In house warranty cost fell by 77% in 2003 from 2002
Warranty cost per vendor was reduced by 21% between 2002 and 2003