Case Study on The Deming Prize and Sono Koyo

Group 2

Introduction
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.

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.

Does winning a quality award lead to competitive advantage for a firm ?

Yes of course .. Winning a quality award such as Deming Prize gives an edge over the competitors. Makes a company trustworthy in the market. Motivates the company to maintain the high standard of the production , which definitely helps in getting more business for the company. The company gets inspiration to increase the quantity while maintaining the quality. The company as a whole keeps working hard to not allow any other competitor to match their award winning qualities. Customers will choose a company with a quality certification over any other uncertified one for reliability and quality.

SKLL Preparations for challenging the Deming Prize:

Sona Koyos TQM initiative began in 1998 as a part of a cluster of companies promoting group learning under the quality guru Professor Tsuda. Sona Koya in-house rejection levels and customer return levels have decreased considerably after the implementation of TQM and TPM initiatives. TQM tools that have been deployed in Sona Koyo include reengineering the production processes to eliminate waste and speed of delivery and reduce inventories. TPM program is also helping the company to improve operational efficiencies with its emphasis on zero accidents, zero breakdowns and zero rejections. These initiatives have fashioned a new culture in the organisation.

 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.

Performance of Deming prize winner

The companys in-house rejection levels, supplier rejection levels and customer return level decreased after the implementation of TQM. The company integrated the various elements of quality management. Company is also developing its core competency and aligning its objective. Total productive maintenance adopted to improve performance. Companies aims to achieve zero accidents, zero defects and zero breakdowns by using techniques. Long term customer oriented vision of becoming supplier of choice.

Firms in auto component sector made significant advances in quality since 1990. This is the highest number of firms from any country has ten Deming award from 1998 to 2004 by applying these tricks of quality.

THANKS