The Hindu Business Line : Six Sigma has spelt success for Ford India, says Friedman

SIGMA STIGMA: Mr David E. Friedman, Managing Director, Ford India Pvt. Ltd., flanked by Mr K.V. Shetty, President, Automotive Component Manufacturers Association of India (ACMA), and Mr S. Seetharamaiah, Chairman, ACMA (SR), at a Six Sigma certification function in Chennai on Friday. — Shaju John

Chennai , May 7

IT will be worthwhile for the auto component sector in India to adopt Six Sigma — a data-driven management tool that helps eliminate waste and improve processes — especially when the sector is increasingly looking at exports and is under constant pressure to reduce costs.

"Six Sigma is well worth the effort; implemented well it will become a powerful tool in your continued success," said Mr David E. Friedman, Managing Director and President, Ford India Ltd, at a function organised by the Automotive Component Manufacturers Association of India (Southern Region), here on Friday.

Mr Friedman said Ford India had achieved a saving of $1.5 million (about Rs 660 crore) in the last four years since it started adopting Six Sigma across departments.

On a global level, Ford Motor Company had adopted this tool since 2000 and achieved savings of more than $1 billion.

The component industry had substantial opportunities to effect waste reduction.

He gave away certificates to 17 participants who had completed a six-month long Six Sigma training programme conducted by the association.

Six Sigma systematically reduced variability in any process and its key advantage was that it forced companies to take a methodical approach to problem solving.

He said Ford India had Six Sigma projects being continuously implemented in the company.

The ultimate goal was to achieve customer satisfaction, which would be reflected in sales.

Ford India hoped to train all its employees in Six Sigma.

The programme, he said, was a natural follow on of the various quality and lean manufacturing programmes that were being implemented in companies.

It was a tool to drive the changes and achieve global standards of quality.

Mr Friedman said there was a need for commitment from the top management towards this programme and companies should have an inventory of projects to work on so that the momentum could be maintained.

Companies going in for Six Sigma should also ensure its effective implementation once the training was completed and only select projects with clear measurable benefits.

Mr K.V. Shetty, President, Automotive Component Manufacturers Association of India, said the association had taken up conducting Six Sigma programmes across regions, especially at a time when the global automobile manufacturers were increasingly looking at India to source components.

Component exports had crossed $1 billion in 2003-04.

The association had set an export target of $2.5 billion by 2010, but the way exports were growing, he was confident that it would touch $ 5billion by that time.

Mr S. Seetharamaiah, Chairman, ACMA (SR), said the association would conduct another Six Sigma programme in July as it had received requests from member companies.