Major case studies on quality achievements in the fields of manufacturing and services included those on Larsen & Toubro (L&T), Sterlite Industries and Gujarat Gas.

Dedicated to continuous quality improvement, QualTech 99 threw light on quality control initiatives that helped Larsen & Toubro achieve weld bead finish to international standards, Sterlite Industries (copper division) to increase the copper yield and Wipro GE Medical Systems to reduce bareboard defects.

For instance, L&T (Hazira Works) achieved weld bead finish to international standards by adopting the Juran on Quality Improvement (JQI) process through a cross-functional team effort.

``The teamcollected data on process-wise percentage of unacceptable weld length for the current jobs. After annualising the number of jobs made at Hazira Works, and considering the man-hours required for grinding the unacceptable weld length, the team calculated that the cost of poor quality of the project was at around Rs 62 lakh,'' said L&T (Hazira Works) assistant general manager PD Lohidakshan while presenting the case study at the seminar.

After brainstorming sessions and cause-effect diagrams, the L&T team went on a diagnostic journey. The discovery? That the poor bead finish was due to reasons like lack of practice, inadequate training and loose connections.

Similarly, Sterlite Industries, which manufactures primary copper smelter based on custom concentrates, has increased its copper yield from 82-83 per cent to 97 per cent last year. Sterlite Copper is a primary copper smelter based on custom concentrates imported from all over the world. The plant yield was around 72 per cent and the balance copper wasgetting locked up in the work-in-progress. ``With an annual production capacity of one lakh tonne of copper, the value of the inventory was causing tremendous financial implications to the company,'' said Sterlite Industries (copper division) senior engineer N Mohanasundaram.

On completion of the JQI project initiated by the company, the organisation could only count its blessings: an increase of 28 per cent in production, Rs 22.29 crore of cash flow, and a direct saving of the interest on the inventory getting locked up to the tune of Rs 1.3 crore in four months.

``About 15 per cent of copper input was getting locked up in work-in- progress which was evident from the past data of operation,'' elaborates Mohansundaram. Elimination of reduction in profitability was around Rs 75 lakh per month. Further, the process is being continued on a recurrent basis.

In the service sector too, quality movements have enabled companies to make manage their business better. The seminar highlight how Gujarat Gas wasable to reduce operating costs and handle customer complaints better, while L&T could establish a system that ensured Modvat was availed in 100 per cent cases.

A case in point is Gujarat Gas which optimised insurance costs through the implementation of the JQI methodology. ``At the Gas Division of the company, operating cost per standard cubic meter of gas sales is Rs 0.51 for 1997-98, which is 8.91 per cent of the gas sale. Due to increase in competition with other fuels and increase in gas purchase price, the operating profit margin per standard cubic meter of gas was under pressure,'' said Gujarat Gas assistant manager (management service) Mihir Vora.

The remedial measure comprised a structured brainstorming on the steps needed to eliminate the reasons for high insurance costs. Finally, the solutions which were practicable were brought to the notice of the quality council, so that all possible resistance was quelled. There were monthly reviews of the projects by the corporate quality management teamwhich put forth recommendations like reduction in amount from public liability amount by Rs 1 crore.

L&T, which had lost revenue by not availing Modvat credit, managed to reduce Modvat losses to zero, by establishing a system to ensure that Modvat was availed of in 100 per cent cases. ``However, addressing resistance to change had to be taken care of with utmost care from the beginning to ensure that all the concerned in the whole process are with the quality team during the entire journey,'' pointed out L&T (Hazira works) assistant general manager (materials) Prajesh Shah.

What L&T gained from the exercise is not just zero Modvat, but intangible gains such as clarity of role and responsibility, improved cross functional communication, increased motivation, better timeliness and discipline and improved vendor relations, says Shah.