CII IQ will play pivotal role in adoption of Mission Zero: Shunya ki Kranti

                                     CII IQ renames Centre of Excellence on Quality to “CII K N Shenoy Institute of Quality”

CII’s national ZED Campaign and the accompanying ZED Maturity Assessment Module, jointly in partnership with Quality Council of India (QCI) was launched today by Shri Kalraj Mishra, Union Minister for Micro, Small and Medium Enterprises, Government of India.

Speaking on the occasion, the Minister stressed that the key focus of the ‘Make in India’ campaign entails ease of doing business; focuses on Public-Private partnerships and harnesses the potential of Democracy, Demography and Demand. The resultant development to India, he said, was a ‘collective responsibility’ and the role of the manufacturing sector in it would be significant, especially in promoting exports. Besides creating jobs, the boost to the manufacturing sector would be crucial to first develop our country and then avail of the Foreign Direct Investment opportunity to further the gains for national wellbeing. India, he noted, already had a number of competitive advantages. India’s domestic market comprised over 600 million rural consumers; Indian workers wages were competitive as compared to China; it had a large talent pool including a strong engineering ecosystem. This however, he cautioned would remain unfinished without ensuring smoother state-centre relations to increase ease of doing business which in turn will be catalytic to attract further investments. Also the expected manufacturing renaissance was beset with challenges of infrastructure like power, ports, railroads coupled with a shortage of trained human capital and public sector control, he cautioned.

The Government’s New Manufacturing Policy, he reiterated, had the vision to enhance the share of manufacturing in GDP to 25% within a decade and creating 100 million jobs on a sustainable basis. Key policy instruments for achieving the above objective would include establishment of National Investment and Manufacturing Zones (NIMZs), self governing and Autonomous Bodies for Industrial Townships and proposals to improve access to finance for SMEs in the manufacturing sector. In this context, he lauded the launch of the ZED campaign which would go a long way to make Indian companies, especially the MSME sector,  world class.

He was speaking at the 2 day 22nd CII National Quality Summit 2014 ‘Make in India Revolution: The Zero Defect & Zero Effect Way’ which began in New Delhi today. In line with the Prime Minister’s speech and CII’s agenda to make India a Model Inclusive Nation with zero defects and maximum effect, the CII National Quality Summit discussed the way forward for India Inc to become “Zero Defect, Zero Effect” through an enabling environment; adopting excellence framework, systems and processes, incorporating the success factors of business models, consumer behavior, technology trends and future factories.

Mr Adil Zainulbhai, Chairman, Quality Council of India (QCI) delivering the Keynote Address, Zero Defect Manufacturing: Quality is the answer echoing the PM’s “Make in India” call and achieving zero manufacturing defects and zero environmental effect said that Quality was the cutting edge which could make Indian enterprises competitive, credible and profitable to improve the lives of its citizens. While some Indian companies had achieved global quality, he noted, many more needed to improve significantly especially government services and most manufactured products through a process of re-design and recasting processes. ZED, he said, could be achieved through incorporating the cardinals of Total Quality Management, Total Productive Maintenance, Green Manufacturing and Environment Sustainability in processes and products. The ZED model, with its 5 maturity levels provided the roadmap for Indian industries to proudly graduate to international class. QCI, he said would, in the next 10 years, first focus on the 48 million Micro, Small and Medium scale enterprises and then improve the quality of government services for the national wellbeing.

In his address, Mr T C A Ranganathan, ‎Former Chairman & Managing Director, Export-Import Bank of India noted the changing customer perceptions on quality and products since the late 1980 in the wake of the logistics, informatics and communications evolution. India, he said, would progressively need to turn to the world for increasing its trade upon which quality would be inculcated automatically. Stressing on the need to enhance spends on R&D, he also advocated the role of self regulation in Industry.

Earlier in his welcome address, Mr N Kumar, Chairman, CII Institute of Quality (CII IQ) & Past President CII & Vice Chairman, The Sanmar Group said that the Quality movement that CII began two decades ago in manufacturing, services, governance and education would reinvent itself to rigorously pursue the National Goal of “Zero Defects, Zero Effects”. CII through its Centers of Excellence would provide focused leadership, right competencies and adequate resources for ZED (Zero Defect, Zero Effect Way). The ZED vision is to catapult Indian Industry to a position of eminence in the global market place and leverage India’s emergence as the world’s supplier through ‘Made in India’ mark mission. He also announced re-naming the CII Institute of Quality, inaugurated in 2001, as the CII K N Shenoy Institute of Quality as a posthumous tribute to Mr Shenoy’s contribution in developing the Institute who as the  Chairman of ABB had sponsored the Building and lead the Quality movement.

Delivering the Theme address, Mr R Mukundan, Co-Chairman, CII Institute of Quality (CII IQ) & Managing Director, Tata Chemicals Ltd, said that the nation was at the threshold of heralding the 2^nd Quality Revolution. Stressing the need to build a national quality culture through an integrated approach, it was particularly significant that CII and QCI were jointly launching the national ZED (Zero Defect and Zero Effect) Mission today. ZED Mission would revitalize manufacturing tools and techniques to build a strong Brand India for goods and services with a focus both on the customer as well as society.

Mr L Krishnan, Convenor, Lean & Six Sigma, CII Institute of Quality (CII IQ) & Managing Director, TaeguTec India Private Limited, delivering the Vote of Thanks, while recounting CII Institute of Quality’s over 2 decade quality journey, lauded the launch of the ZED campaign. He stressed on the need to make Quality a way of living to make a successful “Make in India” movement deliver a high growth and development that was truly inclusive and sustainable.

Day 1 of the Summit will end with the 20th Anniversary of the Business Excellence journey in CII, which will witness the national winners of the CII-EXIM Bank Award for Business Excellence 2014 being felicitated. CII and the Export Import Bank of India joined together, in 1994, for promoting excellence among Indian Industry through these Awards, which are based on the internationally recognized EFQM Excellence Model.

The entire ZED movement built on four pillars of commitment, communication, delivery and objectives, will provide Indian companies the opportunity to work towards becoming ZED companies. The ZED Maturity Assessment Model Standards criteria will ensure compliance to Zero Defect and Zero Effect. Indian companies will re-design & re-invent overall manufacturing process to meet global benchmarks  & standards incorporating cardinal principles of TQM/ TPM/ Business Excellence/ Green Manufacturing / Environment Sustainability in processes & products especially food safety and quality. The movement will inspire & encourage all stakeholders in the supply chain to adopt ZED in a more participatory & inclusive manner, exploring the latent potential of the nation’s workforce to sharpen and upgrade their skills. It will imbibe a culture of pride & fulfillment in offering a zero- complaint regime, going the ‘extra-mile’ to focus on customer-delight while growing new markets and promoting alternate business models.

The day 1 of the Summit, brought together a galaxy of speakers who shared their views on a wide breadth of topics including Making India a Model Nation: Zero Defect Zero Effect; Managing Quality in an Outsourced Model; Succeeding in the connected world shaped by disruptive technologies and dynamic consumer behavior. The panelists included: Anil Jauhri, CEO, National Accreditation Board for Certification Bodies;Arati Verma, Chairman Appeals and Assessor Management Committee, National Accreditation Board for Hospitals & Healthcare Providers; Praveer Sinha, Chief Executive Officer and Executive Director, Tata Power Delhi Distribution Limited; David Harlock, Managing Director, British Standards Institute-Asia Pacific; Sunil Agarwal, Vice President – Business Development & Strategy, Siemens ; Ganesh Sundararaman, Executive Vice President-Foods, ITC Ltd; Anil Gupta, Executive Director (QA &I), NTPC Ltd ; Anu Madgavkar, Senior Fellow, McKinsey Global Institute;Ganesh Natarajan, Vice Chairman and CEO, Zensar Technologies; Soumitra Bhattacharya, Joint Managing Director, Bosch ; N Muralidaran, Chief – Special Projects, Director, NSE Infotech Services Ltd, National Stock Exchange of India Ltd.; L Krishnan, Managing Director, TaeguTec India ; V Narasimhan, Executive Director, Brakes India; Ashok Muthuswamy, Asst. Vice President – Continuous Improvement, Tata Chemicals ; K G Shenoy, Sr. V  P Mfg & SCM , Mahindra Tractor & Farm Mechanization Business, Mahindra& Mahindra; P Jeganathan, Vice President (Manufacturing &Logistics), Wabco; Vinaya Kumar, General Manager, Quality Control Division Toyota Kirloskar Motor Pvt. Ltd ; N N Misra, Former Director Operations, NTPC; Peeyush Vaish, Partner, Risk Consulting, KPMG and Keshav Rattan, NABET.

The programme on 20th November, Day 2 of the Summit, will focus on taking participants through experience sharing technical sessions by India’s leading manufacturing and services companies on; Operational Excellence, Business Excellence and Standards and Risk Management.

Services Exports Should Grow at Faster Pace to Offset Deficit in Merchandize Trade – Finance Minister

Mr. Arun Jaitley, Union Minister  for Finance, Corporate Affairs and Information and Broadcasting  has said that the services exports from the country should grow faster to  offset  the deficit in the merchandize  trade.

While inaugurating the  Services Conclave 2014 today in New Delhi, the Finance Minister said that within the services sector “ we should focus on low lying fruits like tourism, research & development  education etc., where it is easier and quicker  to achieve results,” he added.

(L-R) Shri Arun Jaitley, Minister of Finance, Corporate Affairs and Information & Broadcasting and Mr Ajay S. Shriram, President, Confederation of Indian Industry at the Inaugural Session of the Services Conclave 2014

The Conclave is the joint initiative of  the Union Ministry of Commerce & Industry and CII. Over 250 stakeholders from various segments of services sector are attending the two-day event.

Mr Jaitley said that the services sector contributing close to 60 per cent of the GDP  could  be the driving force not only for exports but for generation of gainful employment. In this regard, he said that the manufacturing sector has shrunk its contribution to GDP to 15 per cent.  “Our effort is to increase its share  to 25 per cent to provide sustainable employment to the people,” he added.

Referring to the WTO negotiations which are at a standstill, the Finance Minister underscored that the definition of globalization has changed over the years.  “It is now consumer driven and no amount of patriotism and jingoism can drive the consumers to buy products.   They go for quality and price competitiveness”, he added.  The positions taken by various developed countries against Business Process Outsourcing (BPO) in the case of IT and IT enabled services (ITeS) has fallen flat because the consumers wanted to have best products at affordable prices, he added.

“Make in India” campaign was evolved to make the Indian products more competitive in terms of quality and price, Mr Jaitley added. There are many issues that have to be addressed, such as labour reforms, facilitating capital flows,  strengthening of infrastructure  and trade facilitation measures.  He assured that the Government would address these issues in right earnest to enable different segments of industry to grow faster.

Mr Jaitley said that a few areas of services sector had to be identified and capabilities built around  them  to seize the emerging opportunities.  In this regard, he said that India could  emerge as a regional educational hub.  This not only would reverse the trend of Indian students going abroad for higher studies but also could attract students from developing countries to come to India. For this, the quality of education should be considerably enhanced and the objective should be to catch up with the best education institutions in the world.

The Finance Minister also referred to the huge potential India has in the health sector for attracting patients from other countries, who could undergo complex treatments at very affordable prices.  A competitive environment was important to upgrade the skills and expertise, he added.

Ms Nirmala Sitharaman, Minister of State for Commerce and Industry, said that the services sector in India had grown without much support from the Government. Some of the sectors like IT and ITeS, films, entertainment, professional service etc. had become world class.  The changes brought about in these segments were driven by the industry itself.  She wanted this trend to continue since there was a huge untapped potential in various segments of services sector, be it services for domestic consumption or exports.  The two day conclave, she hoped , could map the potential and identify strategies to tap them on a sustainable basis.

Mr Rajeev Kher, Union Commerce Secretary, said that India’s share in the world services exports was only 3 per cent as compared to EU’s share of 42 per cent and China’s 4 per cent.  “It is a huge challenge for us to increase our  share to the global services trade.  For this, all stakeholders should come together. Quality of services whether it is for domestic consumption or for exports should considerably go up.  The success of IT and ITeS should inspire us to aim high to reach higher orbit of growth in other sectors as well,” he said.

Mr Kher said that Department of Commerce would act as an anchor for permeating Rule based exports. Other ministries and organizations are also involved in the exercise. This would help achieve Indian exporters to penetrate into markets more aggressively.

Mr Ajay Shriram, President, CII, said that a reform agenda was imperative for enhancing the services exports for the country.  In this regard, skill development and laying of physical and digital infrastructure were important.  Services Trade Agreements both bilateral and multilateral also could help the services sector exports to grow faster.   He wanted earliest    signing of Totalization agreements with countries, where there are a large number of Indians working.

Mr Malvinder Mohan Singh, Chairman, CII Services Council, said that the services sector should grow faster from the present level of 9 per cent per annum to enable India to achieve 10 per cent growth in GDP in a given timeframe.  At this rate, the share of services sector to GDP would increase to 65 per cent.  Referring to the health sector, he cited the example of Singapore where it was empirically proved that one dollar investment would have a significant multiplier effect  on the community.  He underscored the need for creating a strong IT backbone  and a  regulatory mechanism.

Mr Chandrajit Banerjee, Director General, CII, has referred to the initiatives of CII  in skilling people, particularly in the health sector.  This, he hoped, would plug the skill gap in the country.

Russians will always be welcome in India: Nirmala Sitharaman, Minister of State for Commerce and Industry, Government of India

Indian Companies Will Enjoy All Possible Support in Russia: Dmitry Rogozin, Deputy Prime Minister of the Russian Federation

Red Tape and Foreign Currency Major Hurdles to Business between India and Russia: Dmitry Rogozin, Deputy Prime Minister of the Russian Federation

At the 8^th India-Russia Forum on Trade and Investment held in New Delhi on 5th November , Mr. Dmitry Rogozin, Deputy Prime Minister of the Russian Federation promised all possible support to Indian companies attempting to set up presence and operations in Russia.

Ms Nirmala Sitharaman, Minister of State for Commerce & Industry addressing the 8th India Russia Forum on Investment & Trade on 5 November, 2014 at New Delhi

Referring to red tape as a major business adversary, he said, “We will give personal assistance to every case to solve any bureaucratic problems.”

Appreciating Prime Minister Narendra Modi’s results-oriented approach, he called the “Make in India” campaign a major patriotic and economical initiative. He called for more spirited energy in building business relationships between Russia and India, especially for the small and medium enterprises.

Ms. Nirmala Sitharaman, Minister of State for Commerce and Industry, Government of India recalled Russian classics in literature and music to emphasize the historical linkages of India and Russia. Acknowledging red tape as the elephant in the room to be removed from both countries, she stressed on leveraging complementary strengths to increase business cooperation. She called to understand mutual strengths in terms coupling the technology that Russia can offer and blending that with Indian entrepreneurship, along with the new government’s business-friendly policies as a the means to strengthening commercial relationships.

Drawing attention to the Make in India campaign and inviting Russian companies to set up in India, she said, “Manufacturing will be the next buzz in India. We hope to increase share of manufacturing from 15% to 25% of GDP.” Referring to the various policies that have been relaxed in India, including establishing an online, single-window clearance mechanism, 24/7 digital facilitation of customs, de-licensing in defense, further liberalization in FDI, she said that Russian are always welcome in India.

Mr. Sergei Cheremin, Chairman, Business Council for Cooperation with India and Minister for Economic Development of the Moscow Region drew attention to the various unexplored states and regions in both countries. A business delegation of nearly 100 Russian companies is in India, indicative of a renewed interest in doing business with India.

Mr. Satish Reddy, Chairman, Dr. Reddys Labs emphasized that the private sector must deepen ties to increase trade and investment.

The prospects for India-Russia commercial collaboration in manufacturing, defense, aerospace, pharmaceutical industry, IT and ITeS were also highlighted at the Forum. The Forum was organized jointly by CII and FICCI, in collaboration with the Ministry of Commerce and Industry, Government of India, the Ministry of Economic Development of the Russian Federation.

 

‘Make in India’, ‘Skill India’ and ‘Digital India’ to enable MSMEs attain Exponential Growth: Madhav Lal, Secretary, Ministry of MSME

CII in Partnership with the Ministry of MSME, Government of India organized the Global SME Business Summit 2014. The day one of the event focused on connecting Global SMEs for mutual business development and explore emerging markets. During the event, Mr Madhav Lal, Secretary, Ministry of MSME, discussed the intent of the Government of India and the Ministry of MSME to lead Indian MSMEs on a high growth path. After highlighting the role played by MSMEs in the economic landscape of the country, he spoke about the dual role that the Ministry of MSME plays in assisting MSMEs in terms of providing them with a supportive framework through policy advocacy and by bringing about institutional reforms in areas of policy vacuum including taxation reform, regulatory systems’ reforms, finance provisioning reforms, etc. He shed some light on the recent initiatives of the Prime Minister of India, Mr. Narendra Modi, for support to MSMEs. The most significant measures include the Make in India initiative, Skill India for skill development, Digital India for ICT interventions, etc. He also made a mention of the announcements in the Union Budget 2014-15 for the provision of a Rs 10,000 crore venture capital fund and a Rs 200 crore technology centres fund, accreditation of enterprises in this sector, virtual clusters, online filing of EM I and II, incubation centres, etc. These initiatives make it clear that the government is focused on supporting the MSMEs. He illustrated the need for identifying important verticals within this sector with differing interests with regards to government’s policy interventions and highlighted the merits of adopting a focused approach to benefit these verticals. Mr Madhav Lal inaugurated the 11^th edition of Global SME Business Summit 2014 today in New Delhi.

Mr R C Bhargava, Chairman, Maruti Suzuki India Limited in his Keynote Address, disclosed the role played by MSMEs in assisting Maruti Suzuki in its journey to become the biggest car manufacturing company. He spoke about the diversity of opportunities evolving in the auto components sector for MSMEs. He discussed the role played by Maruti in cluster development, skill formation, etc. He also added that, to make the PM’s call to grow manufacturing a reality different rules and incentives need to be devised for MSME’s working as vendors to modern manufacturing. A capital investment based criteria is inappropriate and in fact creates a disincentive to improving technology, productivity, quality and reducing costs. He said that industry will not become competitive if this persists. This applies not only to auto but aerospace, capital goods, power generating and transmission equipment, consumer durables and so on. The entire package of incentives should lead to enhancing competitiveness of manufacturing, and upgrade of all aspects of their work, commented Mr Bhargava.

The report “The New Wave Indian MSME: An Action Agenda for Growth” was released by Mr Madhav Lal at the Session.

The report “The New Wave Indian MSME: An Action Agenda for Growth” was released by Mr Madhav Lal at the Session. This report suggests an alternative framework for the definition of MSMEs. This report outlines relevant recommendations for an opportunity framework built around five growth enabling pillars comprising: infrastructure, regulatory framework, funding, performance incentives and skill India. It also contains global best practises and is in line with the government’s vision of policy incentives for the MSME sector in India.

Ms Patricia Hewitt, Chair, UK India Business Council, emphasized on building a healthy India UK SME partnership. She explained that through improvements in factors like gaining access to networks and contacts; establishing a dialogue and building a relationship with actors in the market; navigating unfamiliar business environments, including differences in language and culture; procedural barriers such as product standards and other aspects of the legal and regulatory framework; assessing the competitive environment and identifying potential opportunities and risks; etc., the small and medium enterprises of both countries can be enabled to explore and expand their businesses in each other’s domain.

Mr T T Ashok, Co-Chairman, CII National SME Council, shared about the various features of the session which include 8 sectoral sessions on emerging sectors with relevance for SME penetration and internalization, 6 country sessions to explore cross-border partnership opportunities of mutual benefit, the India SME expo showcasing 50 national as well as international SMEs, their products and services and a special National Vendor Development Program with leading CPSEs in India to enable Public Sector Enterprises to identify suitable vendors in the MSE category and to provide SMEs with an opportunity to interact with these CPSEs and cement long term partnerships. He added that looking ahead, the challenge lies in building the next generation of SMEs that will collectively function as the powerhouse of the global economy. To achieve this, governments and industry around the world would need to make many collaborative efforts to create conducive eco-systems for MSMEs within their respective geographies and across regions.