Muthuraman: Improved standards lead to innovation

Our Bureau Bengaluru | Updated on December 16, 2014 Published on December 16, 2014

B Muthuraman speaks at the international conference on total costmanagement in Bangalore on Tuesday - GP SAMPATH KUMAR

Global meet on cost management in Bengaluru

“Manufacturing has to be competitive in order to survive, grow and to create wealth. Cost is no more a finance function. It is HR, operating and marketing functions,” said B Muthuraman, former Vice-Chairman, Tata Steel Ltd and former President CII.

Strategic function

Speaking at the 13th edition of ‘International conference on total cost management – New frontiers of business excellence through TCM’ organised by the Confederation of Indian Industry in Bangalore, Muthuraman said, “In all, it is a strategic function. Journey from cost understanding to maturity has three steps – standardisation of present processes; improvement of the process to next level; and standardising improved process.”

“This three step process should be a continuous affair to set standards, improve standards and it should finally lead to innovation,” he added.

Vikram S Kirloskar, Vice-Chairman, Toyota Kirloskar, said there was sluggishness in Indian automobile industry during the past two years and low volumes across companies created new challenges. Minimised cost through flexible line production, simplified processes, and re-skilling people are some of the measures that worked to achieve TCM.

Awards presented

CII-TCM maturity model awards were presented to: Grundfos Pumps - India, Subros Ltd, EID Parry-India, Coromandal International Ltd, Nippon Paint-India, Kirloskar Brothers Ltd and Century Rayon, ITC PSPD.

Charless Tilley, CE, CIMA, London, said, “CIMA and CII joined hands to create a strategic approach to cost management. CII is developing online self assessment diagnostic tool within the excellent TCM framework. Sustainable competitiveness should go hand in hand with cost competitiveness.”

Bhaskar Bhat, Chairman, Cost Congress 2014, said, “Cost Congress made significant progress in Indian industry. Cost to marketing is generally seen as negative connotation. But, CII TCM division took initiative to make TCM a national movement. CII has been organising cost awareness programmes to industries. CII-TCM maturity model is unique in India.”

“TCM maturity framework started few years back has gained momentum. About 50 organisations were assessed so far through participation for CII- TCM awards. These awards will be major driver for the TCM movement in India,” said AN Raman, Member, TCM Working Group.

Published on December 16, 2014
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