MAKE IN INDIA: Focus on Quality Ratings

Focus on Quality Ratings - Qimpro

Make in India

For survival and success, we need to Make In India. This is an axiom.

Make in India is applicable to manufacturing and service organizations, including healthcare and education.

At a macro level, every organization has three key functions: Purchasing, Operations, Marketing. The performance of these functions is reflected in the Profit & Loss Statement.

Cross-functional processes deliver outputs to customers. Customers define Quality. They are demanding in terms of Quality and Reliability. Global customers are even more demanding.

Operations is responsible for the creation of Quality outputs that Marketing can supply to customers. Marketing is perceived to be a supplier by it’s customers.

Operations is dependent on Quality inputs from Purchasing. Over 80 % inputs required by Operations are purchased from suppliers. Most of these are MSMEs. Purchasing is perceived to be a customer by it’s suppliers.

Consequently, the most critical function for Make in India is Purchasing. Got it?

Problem & Solution

Question: How do we normally purchase?

Answer: Lowest cost. Is that not obvious?

Question: Have you considered assessing the Quality of operations of suppliers?

Answer: No. Why?

Well, the Quality of inputs to Operations, establishes the Quality of outputs that Marketing can supply to customers. This is the latent obvious.

Consequently, the focus for Make in India must be Quality of supplier operations.

We need a framework for rating the Quality Maturity of a supplier. Much like a Financial rating.  

Healthy Quality Ratings for suppliers can lead to: Higher revenues; lower costs; shorter cycle times; and excellence recognition.

This is a Win-Win-Win for Suppliers-Organizations-Customers. All in India.

Random Thoughts

  1. One must study a process wing to wing
  2. Process is one. Ownership of segments changes
  3. The focus for Make in India must be Quality
  4. The MSME sector can gain with Quality Ratings earned by each enterprise
  5. Large organizations must purchase from the MSME sector, based on their Quality Ratings
  6. Large organizations must also pursue Quality Ratings to attract global customers.

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