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Mohali Success Story
The TQM Cluster movement assumed national importance and scope in 2004. However, a formal programme of industrial cluster development was inaugurated in India in the mid-1990s. The movement started with the CII-MUL ISO9000 clusters for suppliers in 1992-93 followed by the CII-MUL QS9000 clusters for suppliers in 1994-95. CII-MUL started the TQM cluster with Prof. Tsuda for 20 suppliers in 1998. All these clusters focused on the Auto Components sector. Taking a fresh approach in 2002, CII launched a pilot cluster project with 14 cross-sectoral companies based at Mohali.
A study was initiated by UNIDO on Indian clusters, the report of which came out in 1996. This formed the basis of the Programme of Cluster Development, which began to be implemented by the Office of the DC (SSI). It is estimated that there are 400 modern clusters of SSIs, and another 2000 of rural producers and artisans. These are estimated to contribute up to 60 per cent of India's manufactured exports.
Mohali is a unique model with many firsts in its formation and implementation process. This cluster had different types of industries with one common goal - to stay competitive and profitable. The participating companies were all from the small and mid sized segment. Learning was not just at top management level but at worker level as well. A paradigm shift made these SMEs assimilate the values of “learning through sharing”. Already, the multiplier effect is evident, with more and more companies looking at the Cluster companies as ’role models’.
This project comprised interventions in the areas of Energy, Quality and Cost Management. The results were tremendous. Energy costs reduced; housekeeping levels improved, in-process rejections decreased and customer complaints reduced, thereby raising the cost-efficiency of participating companies. For example, customer rejections in many cases fell from 60,000 parts per million (ppm) to 20,000 ppm and in others in-process rejections saw a reduction from 1,35,000 ppm to less than 15,000 ppm.
Following the success of the Mohali cluster CII implemented the Gurgaon cluster with equally encouraging results. The participating companies in this cluster achieved significant results: space saving of around 375 sq mtrs; up to 30% improvement in productivity; sales increased by around by 35%; manufacturing costs reduced by about 25%; inventory turnover improved by about 50%; Significant reduction in change-over time and financial saving of over Rs.100 lacs; reduction in manpower requirements. Cluster members also achieved intangible benefits such as greater employee involvement, better working environment, improved floor space utilization and Safe working conditions.
Learning from mohali
- Various types of industries can become cluster members.
- In 15 months, companies crosed sigificant milestones
- learnings at senior worker level
- paradigm of "learning through sharing" assimilated
- Energy Mgmt, Quality Mgmt, and Cost mgmt, were intergrated seamlessly.
- Energy saving per company were Rs. 1.70 lakhs with average investment per company of Rs.0.90 lakhs thus saving 10.80% of their
existing Energy Bill.
- 57specific areas of energy saving identified in all the companies
- Customer returns/rejections reduced
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