Chapter No. 4 Case Study of Kirloskar Brothers Ltd. CHAPTER IV KIRLOSKAR BROTHERS LTD. Part I - Company Profile 4.1 - History of the Organisation 4.2 - Kirloskarvadi Plant Part II- TQM Aspects 4.3 Quality objectives 4.4 Mission 4.5 Quality Policy 4.6 Values 4.7 Guiding Principles 4.8 Top management policies and support 4.9 Standardisation 4.10 Customer Orientation 4.11 Reduction of Waste & reduction in COPQ 4.12 HRD Interventions 4.13 Employee Involvement Part III A Critical Evaluation B Suggestions, Recommendations & Conclusions. 113 Chapter IV - Kirloskar Brothers Ltd. - Case Study CH APTER IV KIRLOSKAR BROTHERS LIMITED Parti - Company Profile 4.1 HISTORY OF THE ORGANISATION- The founder of the Kirloskar Group is the Late Laxmanrao Kashmath Kirloskar. He was born in 1868 in village Gurlahsur in Belgaum District. After completing the course of Technical Draftsmanship at J.J. School of Arts, he worked as an assistant drawing teacher at V.J.T.l. Bombay. Being interested in mechanics from a tender age, his appointment at V. J. T. 1. was a boon as he could widen his mechanical knowledge there. He however resigned from V.J.T.l. on being denied a promotion and started manufacture of small products such as pill boxes and buttons. He also started the business of selling and repairing bicycles. He left Bombay in 1896 due to the outbreak of plague and went back to Belgaum, where his brother was a school teacher. With the help of his brother he set up a cycle shop and thus began the business partnership of Kirloskar Brothers. The Late Mr. L. K. Kirloskar started the manufacture of hand chaff cutters in a small workshop in 1900. The castings were brought from Bombay and by pushing up sales he soon established his own foundry. In 1902 Mr. L. K. Kirloskar was entrusted with the work of constructing a mandap in front of the Yamai Temple at Aundh by the then Maharaja of Aundh. It was a 4 year, Rs. 65,000/project in those days which he completed successfully. In 1903 he shifted his workshop to a new site at Thalakwadi on the outskirts of Belgaum to enable him to expand production. In 1905 the first iron plough was made in Incha by Kirloskar Brothers and the first batch of 6 ploughs remained unsold for 2 years ! after which a farmer from Miraj took the risk and brought all the six. The sales increased from 6 to 200 p.a. and fourteen years later a record figure o f40,000 ploughs in a single season was reached. In 1910 the Belgaum Municipality served a notice to shift the factory in 6 months. The Maharaja of Aundh came to the rescue of Mr L. K. Kirloskar and offered a piece of land as well as a loan of Rs. 10,000/- and that is how in 1910 the factory was shifted from Belgaum to Kundal Road Station (now known as Kirloskarwadi) in Ex- Aundh state. The place was barren, a dwelling of dacoits and snakes with no water. Creating Attitudinal Change for Total Quahty Management 114 Chapter IV - Kirloskar Brothers Ltd. - Case Study But With the untiring efforts of 33 of his faithful workers who came with him from Belgaum, he was able to restart production in 1911. After the first world war broke out many other small products were added to the line of manufacture and the number of workers rose to 800. Kirloskar Brothers Ltd. (KBL) which m a real sense is a mother industry of all the other Kirloskar Companies was incorporated into a limited concern with an authorised capital of Rs. 1,00,000/- in 1920. It was just the beginning o fa new era of industrial technology in India, when KBL began its activities with the manufacture of iron ploughs and chaff cutters and soon became a nursery of the nation's industrialisation. The chaff cutter and iron ploughs made by KBL created a revolution in agricultural method implements used in those days. KBL foresaw the changing demands and shifted its manufacturing focus. It branched into the fields of fluid handling and fluid control and soon became a leader in manufacture of pumps and valves. KBL did not stop at this stage. It developed machine tools and hermetically sealed compressors. Today KBL is the largest manufacturer of a variety of pumps, valves, computerised and numerically controlled machine tools, hermetically sealed compre&sors and agricultural implements in India. KBL has its manufacturing plants at Kirloskarvadi, Dewas in Madhya Pradesh and a subsidiary 'Kirloskar - Copeland Ltd.' at Karad. The Head Office is at Pune with its sales office branches in metros like Bombay, Delhi, Madras, Calcutta and most of the state capitals. It has 4 zonal offices and 19 regional offices. 4.2 KIRLOSKARVADI P L A N T : The Kirloskarvadi plant is spread on about 40 acres of land and engaged in manufacture of centrifugal pumps, valves and standard and CNC machine tools. The facilities include design research and development, pattern shop, foundries, machine shop, material testing laboratory, non destructive testing equipments and pump testing laboratories under one roof The Company has an excellent marketing network throughout the length and width of the country. The annual production of KBL Kirloskarvadi has crossed the figure of Rs. 1,000/- million in the year - 1992 - 93. The company has entered into technical collaboration with M/s. Godiva, U. K. for technology transfer of mobile fire fighting pump-sets. AFE Metals, France have collaboration with K'vadi plant for development of casting procedures for low carbon stainless steels and duplex stainless steels. Four foundries namely C. I. Foundry, Creating Attitudinal Change for Total Quality Management 115 Chapter IV - Kirloskar Brothers Ltd. - Case Study Heavy Foundry, Alloy Cast Steel Foundry, and Non-Ferrous Foundry are capable of producing various grades of cast irons, carbon steels, alloy steels and wide range of non - ferrous metals. Cast Iron castings up to 3 MT weights and alloy steel castings upto 1.5 JVrr weights can be poured in single piece. Foundry Laboratory is equipped with sand testing, mechanical testing facilities and a spectrometer for instant chemical analysis. Research & Development Centre has an excellent Test Bed on which pumps upto 5000 L/S flow & 2500 HP ratings can be tested. Pump model and sump model studies are also conducted in this facility, there are other three test beds, one of which is fully computerised. The factory colony has around 400 residential quarters and has all modern amenities hke schools, shops, swimming tank, golf course, tennis courts and national and international dish antennas. KBL's constant and relentless pursuit of excellence from the very inception has been a notable feature of its corporate philosophy. Total Quality Management the guiding principle has enabled KBL to achieve customer satisfaction and high growth rate. It has also brought in its wake the following awards and recognitions- 1. ISO - 9001 - 1987. Certification - from Bureau Veritas Quality International, UK for its Quahty Management System. 2. National Quality Award for 1991 - 92 from the Institute of Directors, New Delhi, for out standing achievement in the pursuit of Total Quality. 3. Ravi Kirloskar Quality Award (Second prize) for 1990 - 91 among Kirloskar Group of Companies for Total Quality. 4. MKRC Energy Conservation Award-1991. Instituted by the Institute of Indian Foundrymen for being the best energy efficient foundry. 5. Award for Export Excellence from "Ministry of Commerce - Govt, of India" New Delhi, in recognition of achievement of highest export performance during 1990 - 91. The Co. has bagged this award consecutively for 6 years. 6. Certificate of recognition as an "Export House" by the "Ministry of Commerce Govt of India", New Delhi. 7. 'Certificate of approval as a well known foundry' by "Central Boilers Board"in recognition of inspection & Quality Management Systems. 8. 'H. N. Thadani Award' instituted by "Indian Institution of Industrial Creating Attitudinal Change for Total Quality Management 116 Chapter IV - Kirloskar Brothers Ltd. - Case Study Engineering, Bombay", for the outstanding contribution in the field of industrial engineering and Total Quality Management. 9. Vanashree Puraskar 1991 By Govt, of Maharashtra, for afforestation in KBL Colony and surrounding areas. 10. 'National Award for R & D efforts in Industry - 1992' by Dept, of Scientific & Industrial Research (DSIR), New Delhi, in the "Capital Coods Development" category for development of CNC machines. 11. Certificate of Recognition from Underwriters Laboratories Inc., Illinois, U.S.A.for the company's Centrifugal fire pumps and vertical turbine pumps. Landmarks in the development of the Co. - 1888 The beginning 1903 India's first iron plough 1920 Incorporation 1927 India's first centrifugal Pump 1937 India's first chesel engine 1940 India's first electric motor India's first Lathe 1958 Technical agreement for large pumps 1960 Technical agreement for vertical turret lathes 1966 Manufacture of hermetic compressors commenced. 1973 Large scale exports of pumps to Europe 1983 Joint design of pumps with a French Corporation. 1988 Centenary Year. Portable fire fighting pump. India's first canned motor pump. Joint Venture for process pumps. 1991 Collaboration for submersible pumps. Creating Attitudinal Change for Total Quality Management 117 Chapter FV - Kirloskar Brothers Ltd. - Case Study No.of Employees (92 -93) As at Apr. 94 Workers 1954 Workers - 1566 Supervisors 263 (vlerks & Draftsmen - 226 Asst. Managers 164 Supervisors - 296 Managers 61 Asst. Managers - 156 Executives 18 Managers - 57 A. V. P 6 Executives - 18 VP 1 Associate V. P. - 04 V P - 01 Total 2467 Total 2324 Table 4,1 Avg. age group = 42.38 ORGANISATIONAL CHART (K. B. LTD.) " AVP (Comp, services) ~ AVP (accounts) ^A V P(B D D ) AVP (Projects) - Exe(USK) - AVP (Engg).