Role of Industry associations in promoting Quality in Industry

Indian Manufacturing Sector had been contributing in a positive manner to the World Economy for a long time. There are very good examples from the industry for their Quality. Companies in Automotive sector, Jewelry manufacturers, Machinery manufacturers, Bio Chemicals manufacturers, Pharma manufacturers have been doing quite well in exporting their products to the world. Many have won laurels for their quality.?

But there are also companies that have gained notoriety for their bad quality. Recent case of exporting bad quality cough syrup by an Indian company leading to the death of 66 children in Africa is a case in point. This is not the first time an Indian company has erred. There have been many cases that would not have come out in the open like this. In this case loss of life is there and hence it has come out. Otherwise, India has its’ own share of bad quality production. Every country in the World is affected by this.?

But as we are having dreams to grow our Manufacturing and as we want to become a major force in manufacturing, we need to address this issue and see how we can improve ourselves in this area.?

There are laws that govern the Quality of Pharma products. There is an opportunity to improve the monitoring of the Pharma companies by Government and ensuring that the violations are reduced / eliminated. But that is a story for another article.?

I would like to look at how an Industry can monitor itself and ensure that its’ reputation is not sullied by the bad quality of its’ members. Government may give support to Industry associations. Government can subsidize some of the Quality improvement programs of Industry associations if they are contributing positively. I believe there are already some programs that Government has put in motion.?

Today, every industry Is having an association for the industry. In addition, there are associations like CII, FICCI, ASSOCHAM etc. The Industry specific associations can play a good role in promoting Quality in their industry. They can also play a role in helping their members to grow. But that again is a subject for another article.?

Let us look at the role that the Industry association can play to promote Quality of their member companies. How these associations can play a role in promoting and improving excellence in manufacturing in their member companies.?

Role that Industry associations can play:

01.??Industry’s manufacturing standards: The association may develop ‘Good manufacturing Practices’ (GMP) for its’ industry and companies can be rated on the basis of these GMPs. The standards will be specific to the industry and the purpose of these standards can be to ensure that the industry maintains some minimum standards. There may be some companies that may have their own Best practices and they may not want to share with everyone. This is fine. We are only talking about ensuring minimum standards. But the Association may also keep introducing new practices that may be adapted by these bigger companies in the industry.?

02.??Industry’s Quality standards: The association can develop Quality standards for the industry. There can be a minimum standard and then there can be Best practices. The companies can be encouraged to adapt them. The association may audit the companies and certify them for the standards.?

03.??Leadership programs for Entrepreneurs:?There can be a Longer term (3 years or more) Leadership program for the Entrepreneurs. This program should envisage the personal development of the Entrepreneurs. Ultimately it is the Entrepreneur who will either make or break his company. Leadership programs are effective only when the Leaders are addressed for a longer time. You can’t impart Leadership qualities in one/two-day programs. This Leadership program can cover the following:?

a.?????Imparting certain essential competencies.

b.?????Exposing the Entrepreneurs to Global best practices with tours to companies around the world in all industries.

04.??Skill Training for the Employees: The association may have Competencies for each functional manager in the industry. There may be competencies specified for Production manager, Quality manager, Purchase manager etc. These competencies can be taught to them and the employees can be certified. The Managers also may be trained in Leadership competencies. The companies can be encouraged to recruit employees certified by the Association.?

05.??Support in implementing Quality and Manufacturing standards: The Association may have a ‘Business excellence team’ (Busex team) that will comprise of Industry specialists as well as Senior Manufacturing Executives from across the industries. This will ensure that the association is bringing in the best minds in the manufacturing. The Busex team has to be headed by a senior professional with impeccable credentials who can command respect of the members. The Busex team can support the Members in implementing the Quality and Manufacturing standards in the companies.?

06.??Industry Quality award: The association can establish a Quality award for its’ members. The standards can be defined by the Busex team explained above. The members can be encouraged to go for the Quality award. The Quality award can be modelled on good international quality awards so that it will motivate the members and it will also give an indication to the Customers of the industry that a company who won the award is a company with good systems.

07.??Regular audits by the Busex team: The Busex team may audit the member companies at a regular interval. The audits should be conducted in the strictest environment. The output should be really useful to the company management to improve its’ teams and processes every year. If the standard of audits is maintained very well, the members will show interest in getting the audits done. The association may have same auditors for some companies to avoid the problem of companies suspecting the auditors to carry best practices from their company to other companies in the industry.?

08.??Role of Bigger companies: Every industry has some bigger companies in its’ fold. These Bigger companies can play an active role in the association activities and in the Busex team. These bigger companies can conduct training programs for the other members. These companies may not share all their Best practices if they do not want to. They will be dealing with their competitors in the association. Hence, they may not want to share ALL their best practices. That is fine. We are talking about avoiding bad eggs in the industry and we are talking about maintaining some minimum standards.?

09.??Role of prominent leaders in the industry: The prominent leaders in the industry have to play a role in promoting the Business excellence in the industry. This requires a mature thinking. There are many mature leaders in the various industries. These people are quite happy to impart skills to other companies in the industry. There will always be a certain section of the industry that comprise of people who may not want to share much. That is fine. If they see the advantages of the whole industry coming up, they will change over a period.?

10.??Recommendation by the Association: The association may recommend the companies to the customers. For this, a certain certification norms may be arrived at. Based on the Business excellence of the companies, the association may rate the companies. The customers of the industry may be encouraged to look at the rating. This may be one input to the Customers of the industry. They will surely have their own means of assessing the competency of companies in the industry.?

The industry rivalry: In every industry, there would be rivalry among the members of the industry. This can be a big issue in implementing the above plan in the industry. But there is also a certain cooperation among the industry members. Usually, this centers around what they should ask the Government. The associations largely limit themselves to representing to the government for various benefits and concessions. They can do it. But they also have to extend their efforts to improving their own Quality standards. ACMA – Automotive component association engages itself in good activities that promote excellence in their member companies. There may be a few more associations that are doing a good job. But all associations have to step up their activity to contribute actively to the improvement of their member companies. The industries also can take the help of other general industry bodies like CII, MMA, FICCI, ASSOCHAM.?

Larger picture: The associations and the bigger players in the industry have to look at the bigger picture. How their industry can play a role in the world stage and how they can collectively gain from these efforts. The manufacturing sector is blessed with some prominent personalities who are playing a role much beyond their own company. These personalities can lend their name to these activities. It will definitely play a big role in improving the Indian Manufacturing.?

Government role: The government can use the industry associations in implementation of certain laws. The Government can implement its’ schemes, awards through the associations. This will strengthen the industry associations.?

Administrative team in Associations: In every association, there is an administrative team and there is an elected team. The administrative teams have to be strengthened. This team should have competent members. The team should comprise of Industry specialists and big minds in manufacturing. Today the administrative teams in certain associations like CII, FICCI, MMA, ACMA are strong. This should be repeated in all associations. The government may mandate some guidelines in terms of the administrative team in associations.

?It is time the associations play a bigger role in promoting Quality standards with their members and contribute to India becoming the preferred choice for Customers around the world for their manufactured product’s needs.

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