Customer Delight Contract initiated by Anand Automotive Limited is a radical effort to focus on the plants across India on quality. The Corporate office has entered into a three – year contract with Group Companies Head and the COO to reduce waste through effective production system. Anand Production Systems and Cost of Poor Quality has been the focus to improve the quality and reduce costs.

Anand Production Systems is designed to Increase Value added Contribution and Customer Satisfaction, In APS system it eliminates non value added activities and puts emphasis on innovative thinking.

The concept focuses on achieving ‘Synchronized Manufacturing Flow’ through, strong focus on People, Workplace, Quality, Machine Effectiveness and Synchronized Manufacturing. Each of these sections represent a step towards achieving manufacturing excellence.

Across the group we found that the percentage of wastage was equal to the profit initially the cost of poor quality was defined and calculated. One of the challenges that the organization faced was the multiplicity of the Joint Venture partners, factories and customers. It became very difficult to define COPQ as unanimous process for all group companies as each group company had their own production system. All the information was assimilated at individual level and then the final definition emerged out of it for COPQ. Once the Cost of Poor Quality was defined it was decided to cut the wastage across the group by fifty percent. The 12 joint venture partners of Anand Automotive Limited have been actively involved in the effort to cut down the COPQ.

While all measures taken in 2007 were internal, in 2008 Anand is going to take the campaign to its suppliers. The manufacturing of Anand Automotive Limited depends significantly on supplier quality, and we have significant quality issue here. One simple rule of COPQ is to first arrest a bad product going out of the door and then support the suppliers to follow Anand Production System so that quality is ensured at all levels and let the organization become epitome of quality in years to come.