The problem was simple: establishing quality indicators for processes on the shopfloor was proving to be a tall order for L&T's Hazira Works, a division manufacturing equipment and systems for a host of core sector industries such as thermal and nuclear power plants, refineries, cracker plants, petrochemical complexes, fertilizer projects, off shore and on shore oil and gas exploration, processing complexes and aerospace applications.

But thanks to a seven year old initiative christened `Amrit Manthan', the engineering major has finally established standardised quality indicators for various processes on the shopfloor.

``That we had to benchmark our activities with the best in the class internationally was evident to us as far back as 1990. Amrit Manthan was not a process which could deliver readymade solutions but a journey we had to undertake in the quest of excellence,'' says L&T Hazira Works', deputy general manager YS Trivedi.

Hurdles on the trail
L&T's Hazira Works manufactures Engineered To Order (ETO) equipment and systems for a wide range of industries. These ETO products represent enormous diversity in equipment, design philosophies, materials, sizes, processes characteristics, manufacturing technology and quality levels. Add to this the continual up-gradation of technology and the picture becomes all the more complex.

``These factors drill through to the shopfloor and affect our manufacturing processes,'' says Trivedi. Take for example one such manufacturing processes: welding. There are at least ten-sub process with several versions in practice at any point of time. This results in thousands of procedures to be developed and to choose from. Further, the skill level changes depending on the job at hand and the levels of automation. A similar situation exists in all other processes such as design, planning and execution, procurement and inventory control.

So where was the scope for standardised quality indicators in the plethora of processes? Says Trivedi, ``The multiple and interdependent variables required an involved approach to establish quality indicators. The prevalent benchmarks may not be readily available. Moreover the product focus and technology changes on a continuous basis. What you manufacture today may never be repeated again.''

Soul searching
``Since no readymade solutions were available, we started by asking what our internal and external consumers wanted,'' says Trivedi. The journey began with speak-out sessions or `Voice Of User' sessions organised at all levels across the organisation in 1993-94. These were structured one-way interactive sessions where only the consumers were allowed to express their difficulties and expectations.

``The sessions proved to be real eye openers, the departments were subsequently required to prepare their improvement budget based on them. The voice-of-user sessions led to candid discussions on issues and a number of customer-focussed parameters started emerging in all functions,'' says Trivedi.

A year later a structured questionnaire on wide spread issues-including a sense of belonging, job satisfaction and security, compensation package and management policies-was sent out with the intention of conducting an Organisation Climate Survey. Company sources refer to the phase as that of ``soul-searching and looking inward.''

Armed with this knowledge, the company launched `Operation Manthan' in October 1995 which, through structured meetings, analysed all processes threadbare. All functional areas including administration, security and even estate maintenance were represented in these sessions. The result was sheer manna: a set of critical, quantifiable and commonly-agreed quality parameters which were evolved complete with their owners, monitoring methods and frequency.

In 1996, external consultants were roped in to launch the Juran Quality Improvement (JQI) projects. This was to drive Operation Manthan forward by emphasizing the importance of the team over the individual, within employees.

Finally, in a effort to measure and control the processes of vendors providing materials to L&T, the company evolved a Vendor Performance Rating System (VPRS) in March last year. The VPRS rates vendors on a 100-point scale with four key factors in mind: delivery, quality, price and consumer satisfaction. ``The VPRS has provided an opportunity for the vendors to improve their processes and quality and ultimately grow with us,'' says Trivedi.

Counting on parameters
With the help of the learnings emanating out of the JQI and VPRS the company has arrived at a series of process parameters, which have now been put into place for all functional areas including the computer center, HRD training, and accounts. These parameters are subject to continuous upgradation.

These benchmarks for all internal processes now generate vital feedback for efficiency improvements. The company has established a feedforward mechanism to share the inputs and sustain the improvements. This includes the `monthly productivity meetings' attended by all shop heads and workmen representatives, and the `monthly quality review meetings', among others.

The proof of the pudding of course, is in customer satisfaction. In 1999, the company conducted a Consumer Satisfaction Survey which assessed L&T's engineering equipment division on parameters like shareholder value creation, consumer satisfaction and the company image.

The measure of customer response: the division was rated 5 on a scale of 7, by two-thirds of its consumers. Engineering success on that benchmark, is perhaps the real manna for L&T's Operation Manthan.