Escorts Partners With Cognizant to Digitally Transform its Businesses

Escorts Limited has announced a strategic relationship with Cognizant to modernize its technology landscape and achieve the company’s vision of digitally transforming its businesses to deliver innovative products, provide superior customer experience, and drive growth. This multi-year, multi-million dollar engagement spans all of Escorts’ businesses, including agri-machinery, material handling and construction equipment, railway equipment and auto components.

Cognizant

Cognizant will enable Escorts to improve control and collaboration across its value chain by mobile-enabling its workforce and integrating multiple systems used by vendors, sales partners, and customers. This will help Escorts continuously improve product quality and offer a broad range of customized, configurable, and value-added products and services, strengthening existing customer relationships and building new ones.

To know more, read the Press Release on our Corporate Website.

India We Are Ready!

Taking a step closer to our “Vision 2020”, Escorts is proud to announce the launch of our brand new Corporate TV Commercial. The commercial aims to position Escorts as one of the leading engineering players in the country, which has been strengthening the foundation of agriculture and infrastructure through its technological excellence and innovation.

India We Are Ready II

The TV Commercial reinforces the Escorts legacy and core of our DNA – powering the cogwheels of nation’s progress by engineering the fundamentals of growth and taking India’s best to the world.

Escorts… Engineering the Fundamentals of Growth!

India, We Are Ready!

 

Together, Everyone Achieves More

“Tough times never last, tough people do.”

The team at Escorts Construction Equipment (ECE) is an embodiment of this adage. Having witnessed tough times in the recent past, the team has taken it upon itself to transform the way it works and serves its customers. As stories of ‘comeback’ and ‘growth in a de-growing market’ surface, it is hard to miss the energy at Escorts’ construction division.

Industry at a Glance

With the slump in execution of infrastructure projects across the country impacting the construction industry, ECE was in troubled waters in the last few years. The industry volumes dropped by almost 30% in the last three years, with all product segments registering a decline. The material handling and road construction segments witnessed a decline by over 16% on a compounded basis in the same period.

December 2014 onwards, the industry has seen some positive movement, which is expected to get better in the second half of this year. In the coming few months, the government’s ambitious plans for ‘smart cities’ will not only be a harbinger for the nation’s growth, but will also be a big boost for the entire construction sector.

The good news is, according to projections, the construction equipment industry is expected to grow at a compounded rate of 20% till FY20. If all goes well, we are looking at an industry size in the vicinity of Rs. 34,000 crores, moving up from the current Rs. 13,500 crores. These numbers will be majorly contributed by the earthmoving segment, followed by road construction and material handling.

Escorts Construction Equipment takes pride in owning the most comprehensive product basket in the Indian construction equipment industry. The company offers a wide range of products in the segments of material handling, earthmoving, road construction, and utility equipment.

For the last several years, Escorts has been the market leaders in the material handling segment, owning more than 50% of the market. Despite being a late entrant into the earthmoving segment, our products have been received with an encouraging response. We not only manufacture products for road construction, but also sell traded products from some of the best global makers.

The New Energy is Palpable

Having been impacted by the severe slowdown in the industry, Escorts Construction Equipment utilized this period to enhance operational excellence internally. With ‘products’ being the cornerstone of success during times of growth, the focus now shifted to ‘people’ and ‘processes’. The entire senior management team of ECE came together to chalk out exhaustive plans of how to mitigate the market situation.

“People” have perhaps played the biggest role in executing this turnaround, demonstrating terrific zest to try out the uncharted, and an unrelenting commitment towards organizational goals. Whether it was changes in the organizational structure, visible transformation on the shop floor, or setting targets for each month, all initiatives and ideas were ‘democratic’ in the truest sense of the word – of the people, by the people and for the people. As a result, the division witnessed a near-perfect alignment to the vision of a turnaround. With the help of war room discussions, participation in town halls, quality workshops, and suggestion schemes, the entire team made tremendous efforts to understand ‘where we are’ and accordingly fixed achievable goals for the short and long term. The shop floor too is buzzing with this new-found enthusiasm, boosted by a series of motivational communication and safety-focused initiatives for the workmen. With every small success, the air of positivity at ECE is going stronger and more palpable.

ECE Team

The business also collaborated with a global consultant to optimize material costs by streamlining processes and renegotiating with suppliers. This exercise helped us reduce material costs substantially, with a lot more to be executed in the next two years.

ECE evolved its customer profile from corporate to retail (40-60%), strengthening the division’s pricing power. It enhanced its pricing and upgraded the products, which has led to increase in realizations by 11.4% during the last few quarters. Not just that, we have managed to securitize cash flows through lower credit exposure through secured payment/credit. The team has been working on improving sources of retail finance for our customers, collaborating with several new partners in the last few quarters.

The most competitive product segment in the construction equipment industry – the backhoe – has been facing a slump since the peak of 2012. The present financial year has seen the segment de-grow by 15% over last year. In such an environment, the Digmax II – our advanced backhoe loader – has been one of the most prized products in the ECE portfolio. Backed by a superior product and a renewed retail push, the marquee brand has consistently increased its market share. In fact, ECE is the only Indian manufacturer to have broken the glass ceiling and is now giving a serious fight to the MNC OEMs that have dominated the backhoe turf since the last couple of decades.

In the category of Pick-n-Carry Cranes, we continue to hold an undisputed 51% market share. And, with the new edition of safe cranes – the TRX Series – increasingly gaining acceptance, this number should only look up.

The Way Forward

The division is today focusing on four key areas – earthmoving, material handling, product support, and parts. Increasing market share in backhoe loader segment will be a priority for the next few years. Nonetheless, the team will also look at retaining the leadership position in material handling by introducing new generation of the in-demand safe cranes.

In Product Support, the focus will be on encouraging dealer dialogue through various interactive programs and schemes. Improving turnaround time for support and ensuring availability of spare parts will be the other areas that will help us boost customer satisfaction in our products and service.

Going forward, Escorts Construction Equipment is looking at being a self-sufficient division, with an improved contribution to the company’s topline. Cost reduction, manpower optimization and streamlining of channel finance will be key areas that will contribute to the long term goal of constantly improving bottom line.

Commitment to Safe Manufacturing

Workplace safety is one of the key concern areas for most manufacturing organisations. Despite elaborate risk assessment plans, companies often end up neglecting the most critical aspect of safety – training.

At Escorts, we have been strongly committed to meet the demands of safety and ensure that our employees are well-trained to deal with various kinds of workplace risks and hazards. Whether it is creating awareness through technical and attitudinal training or collaborating with the workforce to establish stringent safety standards, we have been a frontrunner in instilling the culture of safety in its manufacturing operations.

Our focus on the safety culture has resulted in Escorts winning 12 safety awards in the last four years. Several organisations that benchmark safe manufacturing practices have recognised our achievements in this field.

To create awareness about Occupational Health, Safety and Environment, Escorts commemorated the 43rd National Safety Day by organising a week-long event about the value of safety in manufacturing practices. Organised by the Environment, Health and Safety (EHS) team, the celebrations focused on instilling the culture of safety in day-to-day operations, as well as the mindsets of our employees.

Safety Pledge Fire Mock Drill

The event kicked off with heads of all production units taking the safety pledge to observe rules, regulations and procedures and develop attitudes and habits conducive for achieving safety objectives. One of the key highlights of the event was the ‘Spot the Hazard’ competition. Meant exclusively for shop floor employees, the competition focused on identifying potential hazards in work areas and saw huge participation from employees. Other activities included mock drill, safety slogan, poster, poem, and essay competitions. The Safety Week celebrations also reached out to bus drivers and security officers, who were trained on handling emergencies and ensuring safety in their day-to-day operations.

Evolving Role of Financial Leadership

Q&A with Ms. Jyoti Khatuka 

The global economy is growing increasingly uncertain in its outlook. Fluctuating energy prices, turbulent currencies, commodity price rises, public government deficits, and inflationary pressures are just some macro-economic trends that are having a significant impact on the way businesses operate. Resultantly, business priorities are changing; and organisations are forever on the lookout for long-term strategies that foster sustenance and profitability. 

The need for powerful financial leadership has never been felt so strongly before as in the present-day business environment. Today’s business leaders are expected to guide their companies through volatile markets with hitherto unheard-of challenges, with innovation and agility as their torchbearers.

Beyond the core responsibilities of financial reporting, audit and compliance, planning, and treasury, financial leaders are now playing a stronger role in corporate portfolio management and capital allocation. Many others have become their company’s ‘voice’ in investor relations and communications with the Board.

Escorts’ Corporate Communications team spoke to Ms. Jyoti Khatuka, AVP – Head Treasury & Project Finance, on this evolving role of financial leadership, and what it takes to be a successful finance professional today.

The role of Financial Leadership (CFO/Finance Head) has never been more demanding. How does this change create value within an organization?

The financial leadership, or CFO, or whatever you call this role, can now be labelled as a “Business Enabler”. The role has evolved beyond a traditional mandate to provide financial perspectives and analysis. Financial leaders today make greater contribution to organizational strategy, risk management and operational success.

In recent years, compliance and regulatory controls have also become more complicated, leading to CFOs having to take even greater responsibility. Usually, the finance heads are given the responsibility for profitability targets. Irrespective of the health of the company, the topline and bottomline expectations remains constant. The CFO has a clear understanding of the revenues and the costs. With this knowledge, he can partner with the CEO and achieve those targets.

As a business enabler, the CFO today brings value to the organisation by providing insights to:

  • Corporate Strategic Planning
  • Technology Management, Investment and Implementation
  • Corporate Governance and Investor Relations
  • Cash & Capital Management, Forecasting & Risk Management
  • Tax Planning & Optimization

What are the critical skills that a financial leader must possess in today’s times?

To be successful as a financial leader, one must be a visionary more than anything else. He must be the management’s eye-opener to the economy and policies. To be able to achieve this, the financial leader should be well aware of business fundamentals and should keep an eye on macroeconomic issues. He should be able to anticipate future challenges and come up with the solutions to deal with them.

Above all, he should be an inspiring leader who encourages collaboration by managing people with different roles and responsibilities, and directs them to achieving the organisational vision.

How can finance professionals better equip themselves to deal with these times of transformation?

Any individual in the domain of finance should, more than anything else, be prepared to deal with the ongoing global financial crisis. Strengthen your business fundamentals and keep an eye on global developments. Keenly follow macroeconomic trends and industry best practices. Also, it is important to know that in times of slow growth, management of costs can have a positive impact on the financial health of any company. Hence, they should learn to facilitate operational efficiency and better working capital management.

Important Pillars of Change

The remarkable volatility in business environments worldwide has prompted the organization to rethink its business model and prepare the workforces to face the market challenges of tomorrow. To stay competitive and improve productivity, we will need to realign our workforce, eliminating roles and functions in areas that are no longer viable, while growing other areas of the business. At Escorts, we are approaching this strategic initiative with a strong focus on keeping the workforce engaged, so that they are committed to meet the business goals resulting from this redefined business strategy.

Systems driven by transparency

Constant innovations in technology have us working in a globalised, ever-evolving business environment. Employees are becoming more demanding of information/knowledge, thereby driving organisations to become more accountable for their data. This accountability primarily stems from transparency, which has become an integral part of all our systems today.

The Human Resources team is working dedicatedly to simplify its systems, so that people are ‘able to clearly understand the processes and criteria that are used to arrive at decisions concerning them’. Be it hiring, appraisals, trainings, or any other aspect of performance management, we are strategically opening up our processes to constructive feedback and scrutiny.

Engagement through communication

The digital revolution – primarily social media and mobile – has revolutionized businesses and the effect of this is an ever increasing need for change. Easily accessible information has resulted in unprecedented scrutiny from stockholders and the media, leading to an increased pressure on managers. In such a scenario, it is our objective to be continuously engaged with our people and prepare them to deal with this ‘change’.

We are regularly organising town halls, talks with top management, HR forum meets, etc. to communicate with people and understand their needs better. Concerns and suggestions, when voiced through the right channel, have much better chances of being acted upon. And this is exactly the culture we are trying to build at Escorts.

Every employee of Escorts has the right to question decisions concerning them, and we as HR, are here to ensure your suggestions reach the right places.

Green is Good (Part Two)

In the last few years sustainability has come a long way with private companies taking a more proactive roles towards building a more secure and sustainable economy. It may be in the form climate change or responsible business, it is very clear that sustainable business is here to stay and industries need to change their operational ways. Government bodies and businesses need to work in sync for making green manufacturing imperative to Indian industries across the sectors. That’s the reason that CII has come up with action plan for driving sustainability

10 Point Action Agenda for Driving Sustainability

  1. The CII-BCG Report on ‘Green Manufacturing – Imperatives for Indian Industry’ lays out a 10 point action agenda for companies to drive sustainability.
  2. Business entities need to articulate their Green Manufacturing related strategies at the earliest and ensure that these are an integral part of their overall business strategy to remain competitive.
  3. Business entities must develop a clear business case and value proposition for sustainability. This must be accompanied with clarity on necessary changes to business model required to incorporate sustainability in a day to day operations and decision making.
  4. Business entities must ensure focus on development of green products for customers and provide them with due recognition of their quality/trustworthiness as Green products.
  5. Business entities must define clear internal governance mechanism and embed responsibilities within their organizational structure to drive and ensure ownership of the sustainability agenda.
  6. Manufacturing strategy needs to incorporate the development and leveraging of ICT tools that enable Green Manufacturing.
  7. Business entities need to systematically evaluate, embrace and leverage new legislations and policy measure being put in place to speed up the adoption of Green technologies and focus on sustainability.
  8. Policy makers must establish and widely promote a framework to recognize Green products though Green ratings based on criteria that recognize Green Manufacturing and operations as a key element, apart from performance characteristics of the product.
  9. Policy makers need to strengthen policies and coordinate incentives from multiple agencies to promote efficiency measures during manufacturing and production within key energy and resources intensive industries.
  10. Government should ensure greater coordination across institutions promoting sustainability and Green Manufacturing to hold private companies accountable while avoiding market distortion resulting from Green Manufacturing incentives.

Cost: A Challenge with an Opportunity

Cash flow shortage is the one of the top concerns of companies in this unpredictable complicated economic scenario. Enhancing cash flow and minimizing costs are issues to be addressed and understood organization-wide. Working on managing costs, enhancing supply-chain, and manufacturing operations will greatly ensure a sustainable future and profitability.

At Escorts, too, we must evaluate industry practices, critically analyze our operations, explore innovative solutions through discussions, and practice lean management of resources. Cost management is not cost-cutting but optimal utilization of resources to gain competitive advantage that maximizes the value for your business.

The questions we need to ask are:

  • How can we re-prioritize our spend?
  • How can we collaborate to negotiate better?
  • How can we utilize IT to reduce time and increase efficiency?
  • Does our budgeting consider benchmarking?
  • Can we capitalize on shared services?
  • Are we following processes and standardization to cut costs?
  • Are there new opportunities to cut costs? What can we do differently?
  • As a team are we accountable for delivering savings?
  • Do we have a plan to save costs?
  • Do we share ideas to save costs? Do we listen to each other?
  • How can we deliver more productivity with fewer resources?
  • Do we review our infrastructure and operation costs periodically?

Reducing costs and increase sales are the rules of the game. Reducing costs is not cutting costs; it is more about creating the right balance between managing expenditure without compromising on your quality and service. It is about how we can rework our way of working; create new models of businesses; better planning; smarter use of tools and processes. In essence, it is about learning to managing our assets to be able to wade through fluctuating unexpected times.

As a manufacturing company, process efficiency and cost optimization are critical to our operations. In our journey towards a leadership position, cost leadership will become a fundamental pillar for growth. Let’s together tackle this challenge and turn it into an opportunity.

Green is Good (Part One)

Globally, India is a well-known manufacturing hub and ‘sustainability’ is the latest buzzword in the world. Country’s rapid industrial growth has come at the high cost of increasing Greenhouse Gas (GHS) emissions, rising utilisation of resources such as water and increasing waste generation. Government’s focus has shifted from traditional manufacturing to ‘green manufacturing’. And to make the transition successful, the manufacturing policy adopted by the Government of India aims to create 100 million jobs and account for 25 per cent of the GDP by 2022. That is a clear indication about how crucial green manufacturing is to economy for long-term sustainability.

In a research report shared by the Confederation of Indian Industry, India generates close to 4 million tonne of hazardous waste from industrial and bio-medical sources. In the last 10 years, India’s carbon dioxide emissions have increased more than 150 per cent and India has become the fifth largest GHS emitter. To overcome these challenges, the Indian industry needs to adopt green approach in manufacturing.

Industrial India now recognises the importance of adopting eco-friendly manufacturing practices. Manufacturing companies in developed countries have been going green for years leading to reduced production cost and environmental sustainability. In general terms, green manufacturing is making/producing products that have lower environmental impact than other products. But if the product is crucial for society and economy and production of such products could not be avoided, another way manufacturer can go green is by changing the process of manufacturing. By tweaking the process or by adopting other alternatives, companies can still produce the same product but can definitely lessen the environmental impact. Recently, several companies have been adopting green chemistry and reducing water-energy consumption could reduce carbon emission and operational reduced substantially too.

Whether the focus is on green products or green processes, a green approach, also known as sustainable manufacturing is important and valuable!

Catalyst for Engagement

“It is clear that internal marketing must precede external marketing since it makes little business sense to promise the customer a level of service that the firm’s employees are unwilling or unable to provide,” said Philip Kotler, the father of modern marketing.

Talk to business leaders in any industry and they will single out ‘quality people’ as the biggest factor behind their success. After all, ‘a leader is as good as his team’, they say. But what is this ‘quality’ that they refer to?

According to Kotler and several other management advocates, employees who are not in tune with the organisational ethos and objectives can hardly be its true brand ambassadors. And this leads to huge gaps in the value delivered to stakeholders. On the other hand, a ‘quality’ employee is someone who is really engaged with the organization, rather than just employed by it.

So, how does a company grow such ‘quality people’?

Finding, attracting, motivating, and developing good talent has always been a critical task for companies. In today’s fiercely-competitive and networked business environment, it has become more challenging than ever. In such a scenario, strong employee engagement can play a key role in driving improved performance, creating a positive organizational culture and boosting people’s adaptability to change.

There is a clear domino effect between engagement and organizational sustainability. This is because we have consciously built a knowledge-based culture, where success depends more on collaborative thought-sharing and innovation than on automation and processes. And, powerful collaboration happens only when people are meaningfully engaged with the organisation.

Challenging as it seemed at the onset, engagement at Escorts has taken an interesting shape with the small steps that we were able to undertake.

Driving Value

Employee engagement is shaped through the ‘value’ that is mutually exchanged between the employer and the employee. And, communication is the best tool to facilitate this value exchange, by aligning employees’ personal goals with greater organisational objectives.

The setting up of Group Functional Committees (for Manufacturing, Materials, Finance and HR) is one such key initiative that Escorts has taken to drive this communication across the Group. Collective understanding and sharing of ideas, best practices and functional issues, has been an extremely insightful process and has laid the foundation for future people decisions.

Other initiatives such as town halls, CEO talks, employee surveys, leadership sessions, intra- and inter-departmental meets, etc. have helped us engage meaningfully with our people and learn from their experiences.

Without engaged employees, organizations are neither as positive nor as productive as they could be. And, if we truly want to see our company as ‘one of India’s top three engineering companies’ by 2  020, it is imperative that we begin to connect with each other NOW.

As the ‘people function’, we are keen on elevating our communication channels to increase engagement levels within the organisation. To fulfil this objective, we need your valuable feedback and suggestions. This blog is perhaps one of the most easily accessible platforms for all of us to connect with each other and make our voices heard.

So, are you ready to engage?

Streamlining ops, improving performance

With ever challenging market environment, the challenge is to channelize financial resources, create synergies and increase efficiencies. With expansion and growth, how can we balance processes efficiency and reduced errors? One answer is accurate and timely data for better decision making, an imperative to drive change.

Consolidation and streamlining are among the first steps GFC is taking to address these issues. What it aims to achieve with this are:

  • Simplify financial accounting processes to meet rules and regulations and introduce collaborative working
  • Streamline and standardize financial accounting across all businesses to support growth
  • Simplify, automate, and improve quality of financial reporting to save time and reduce the risk of errors and misinformation
  • Develop business intelligence(BI) to enable better decision making in sync with the Group strategy and individual business operations

Through the ERP system, integration of processes will be enabled to ensure data quality, enhanced control, process visibility, timely availability of data, speed of processing and systematic real-time reporting.

The process of consolidation and reorganization can be daunting, however, eliminating duplication and redundancy will save resources. This is the right time to review how we do business and how we can make it better, cost-effective and efficient. This is a process that will be time-consuming but worth it. It will need planning, coordination, team-working and engaging with experts to adopt best practices of the industry.

Through GFC, we aim to develop a unified company through active deliberations and collaboration between stakeholders. It is aimed at reviewing current systems of working, creating lean yet effective operations, educating the teams, providing information and skills to develop plans for transition. The committee is a forum to brainstorm ideas, address issues, recommend changes and plan new initiatives.

Enhancing systems and finding innovative ways to provide quality services and products to our customers should be a combined effort by all of us. Using the right tools and systems, each one of us can contribute to creating maximum value for our stakeholders. We look forward to your cooperation and contributions in making this an invaluable process and give suggestions to enable all divisions to share information, collaborate, and effectively bring about positive change.

Excellence through Perfection – TPM

At Escorts, our  vision of being among the top 3 engineering companies means  achieving level of world class excellence  in everything we do which is nothing short of  perfection. TPM is a language  of  transformation which enables us to move towards  perfection. All goals in TPM are defined as elimination goals, such as, Zero ABCD (Accidents, Breakdown, Cost and Defects). In TPM, we have 5 core principles to which we have to be committed.

  1. Through TPM, we at Escorts aim to create a corporate system that will maximize the efficiency of entire manufacturing system. Thus, we adopt a holistic approach and not work in silos for improvement. It also means we leverage synergy across businesses.
  2. TPM is also planned to be used  for  creating  system which  prevent  occurrence   of all types of losses on the front line and is  focused  on  end  product. Proactive  approach rather than a reactive approach is promoted through TPM  for  realizing  “Zero  accidents, zero defects and  zero breakdowns”
  3. TPM is a methodology which is applied in all functions including production, materials, product development, sales and marketing as well as administrative functions.
  4. TPM brings a new work culture which is based on participation of employees at levels and all functions.
  5. TPM uses overlapping small group structure which not only ensures deployment of top level goals to the lowest level in organization hierarchy.

While we start with TPM methodology, over the years we plan to create a distinct style – Escorts way of working. In line with our vision, we also have goal of winning “TPM Special Award” by 2020, a level which indicates that we are benchmark for others.

Performance-driven Organisation

An organisation cannot achieve its vision and goals without a disciplined system to evaluate performance. A robust performance management system (PMS) presents a unified approach for aligning, measuring, rewarding, reporting, and analyzing the performance of an organization and its people. This in turn enables the management to create the context and practices that ensure uniform implementation of strategy and competency development throughout the organization.

In its path to achieving Vision 2020 – to be amongst the top three engineering companies in India – Escorts is committed to cultivating a performance-driven organisational culture that rewards results. To enable this, we have put in place rigorous performance management and goal-setting processes at all levels of the company. The PMS has been set up to broadly serve the following three-fold objectives:

Defining and Evaluating Performance

The biggest aim of any is to help employees understand how their roles and objectives are linked to their departments’, and above all, their company’s goals. In doing so, people get more clarity about where they fit in, how they contribute and how their success leads to the success of the company. Once these expectations and responsibilities are set, the PMS facilitates measuring of performance against these mutually-accepted goals. The entire process brings in a high level of transparency, wherein employees’ performance is rewarded objectively and ultimately linked to their compensation structures.

Identifying Potential

PMS is the most efficient tool to identify talent and build competencies in the organisation. By measuring outcome-based results against predefined goals, the system is able to spot the high performers in the company. This information can be used by the organisation to re-evaluate its workforce needs, develop talent pools for its growing business functions, and redeploy talented employees to new roles within the company. With better alignment of business needs with people’s competencies, organisations can hold on to their talented and high potential employees, thereby addressing the growing shortage of highly skilled workforce.

Developing Talent

Global studies have identified organizations’ investment in learning and development and in making career opportunities available to employees as their key engagement drivers. Employees who have been with the organisation for a period of time possess unique business knowledge and experience that ought to be enhanced further. The PMS facilitates this development through extensive career planning, which takes into account the individual’s present role requirements, core competencies as well as weaknesses. This plays a key role in defining the extent and type of development programmes that should be chalked out to enhance the individual’s worth and make him feel more respected.

In its present evolving phase, the PMS is already accomplishing this and much more. However, through a constant process of analysis and feedback, the Escorts Human Resources team is working to make the PMS a robust, meaningful tool that will result in improved decision making, enhanced transparency, increased engagement, and objectivity across the organisation – factors that will guide us in reaching to Vision 2020.

Redefining Material Management

It has become imperative for companies to follow a system of lean material flow quick information flow for today the manufacturing industry is constantly facing the challenge of reduced cycle timeline and ever reducing product life cycle added with demanding customers. Management must acknowledge the fact that a manufacturing organization’s success depends on its ability to integrate and align all its business relationships and a smooth chain.

Many a times companies make the mistake of treating supply chain just as any other function of the organization but in reality supply chain is a strong and complex network of cross functional relationships with various dealers, suppliers, business partners and most importantly customers – where every function is equally responsible and needs to be equally involved to run this chain successfully.

Today, quality no more means merely the quality of product but in its bigger role quality means quality of information. That’s the reason that at Escorts, we follow a culture to keep the information timely, accurate, relevant, reliable and complete so that its mutually beneficial to both – the company and its partners. To align the objective of material supply chain to company’s core values we are working towards a leaner chain where the integration with its partners will lead to increased shareholder value and strengthen our sustainable competitive advantage. Our emphasis is to make supply chain an essential element to operational efficiency. The objective of Strategic Material Committee is to create synergy across four divisons of Escorts by adapting best practices and developing reliable supplier base. We are committed for delivering customer centric products on time with optimum cost and best quality. In the process,

Though the business environment is volatile and automobile supply chain getting complex day by day, we are not just making our supply chain leaner and cost effective but we are also committed to creating value for our partners by extending supplier up gradation initiatives.

Towards World Class Manufacturing

At Escorts, our mission is to transform lives in rural and urban India by leading the revolution in agriculture mechanization, modernization of automotive and railway technology, as well as the transformation of Indian Construction Industry. At the heart of this mission is our vision for “Manufacturing” which is articulated as “World Class Manufacturing for creating value for Customers”.

How do we define “World Class Manufacturing”? It is a combination of what our key stakeholder’s desire. For our shareholders, it is all about a lean manufacturing set up which delivers high returns on investment. For our customers, it means world class quality products which elevate their lives. Employees would look for place of work which offers those challenges and rich knowledge to ensure their career growth.  From the perspective of community, it is about how environment friendly is our manufacturing. In a nutshell, it means “World Class processes and work culture which consistently deliver World Class performance”.

How do we reach “World Class” level in manufacturing? It is a journey without destination but not without direction. Fundamental in this journey are our core values which define how we engage with our people and help enhance their capabilities. Other key requirements are outlined below.

First of all, we need a common language across businesses, such as, TPM which in the long term will evolve into “Escorts Production System” or “Escorts way of working”. We have already made a beginning by engaging renowned experts from Japan Institute of Plant Maintenance (JIPM) to guide us.

Second is setting “Elimination Goals” for the long term and not just reduction targets.  Management guru, Peter Drucker wrote “There is nothing so useless, as doing with great efficiency, something that should not be done at all”. If we have to deliver World Class Quality, it is not about highly efficient inspection but to eliminate need for inspection itself by making manufacturing processes foolproof. It is only a relentless drive to identify and eliminate waste which can make us leaner, fitter and stronger. This will require innovation and doing things differently.

Third is introducing “World class processes” and change of mindset to create culture of ownership for Continuous improvement.

Finally in the Transformation journey, “Together we make difference”. Thus, sharing of knowledge and leveraging synergy between businesses is critical. Knowledge sharing forums formed recently, such as “Green Forum” for promoting energy efficiency, “Process fool proofing” forum for promoting “First Time Right” quality is a first step in this direction.

We invite each Escortian to join the journey towards “World Class Manufacturing”

CITIUS, ALTIUS, FRUTIUS!

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