Sona Koyo Final

SONA
KOYO
 PRESENTED BY:
 SNEHA DUBEY (52)
 PRIYA NAIR (38)
 MAHIMA (23)
About the company
 Sona Koyo Steering Systems Limited (SKSSL)
 Established in 1985, it is the flagship company of The
Sona Group
 They are currently the largest manufacturer of steering
systems for the passenger car and utility vehicle
market in India.
 Its collaborator and partner, JTEKT Corporation, is the
market leader in Japan and in the recent past
announced a merger with Toyota Machine Works.




 Post this merger, JTEKT will become the world's largest
steering systems manufacturer.
 The company also has a technical collaboration with Mando
Corporation, Korea.
 As part of Sona Koyo Steering Systems Ltd's (SKSSL)
globalization strategy, the company has acquired a
position in Fuji Autotech France, SAS, the 4th largest
steering system supplier in Europe.
 Via Fuji Autotech the Sona Group footprint extends to
Eastern Europe and South America

v
v Sona Koyo's customers include major vehicle
manufactures in India such as
ü Maruti Suzuki,
ü Toyota,
ü Hyundai,
ü Tata Motors,
ü Mahindra & Mahindra, and
ü General Motors
v Independently, as well as through its network of overseas

joint-venture partners, it exports high quality precision
products to USA, Europe and Japan.

About case:
Sona koyo with the market share of 50% is the largest
manufacturer and leading supplier of-

v Hydraulic power steering systems
v Manual rack and pinion steering systems
v Collapsible ,tilt and rigid steering columns for passenger
vans and MUVs.
 In 1999-2002 the net profit of the company came down to a
record low .
Marked change in quality process with implementation of
Toyota Production System(TPS)

vCapable of supplying products just in time to the
customers, quality system strengthened in line with
ISO – 9002 in 1994


on “learning through experiencing”- focused on customer’s requireme
agement for objectives (MFO)- to focus on company’s objective thus
d to a Quality System Division comprising of four departments –
ntenance
System
ement System
h in sona koyo’s quality journey helped in involving all members with
ng award which helped the company collect customer / market inform

Q1.How has the application of JIT /TPS helped Sona
Koyo reduced the number of defects?
JIT implicitly assumes that input parts quality remains


constant over time

 The main objectives of the TPS were to design out overburden
and inconsistency ,increased productivity and eliminated
waste.
 TPS organized manufacturing and logistics for the component
manufacturer, including interaction with suppliers and
customers
 Increased emphasis was put on supplier relationships. A
company without inventory does not want a supply system
problem that creates a part shortage.
 For eg:“Poka-yoke” or "mistake-proofing“ - helps an equipment
operator avoid mistakes. Its purpose is to eliminate product
defects by preventing, correcting, or drawing attention to
human errors as they occur.
Upgradation of TQM
Total Productivity Maintenance
v Continuously improving all operational conditions, within a

production system; by stimulating the daily awareness of
all employees which helped in reducing rejects as well as
the breakdown of machines, thus helped in achieving
zero defects in various areas.
 Quality Management System
v can be expressed as the organizational structure,

procedures, processes and resources needed to
implement quality management.”
Environmental Management System
v It included the organizational structure, planning and

resources for developing, implementing and maintaining
policy for environmental protection.
Lessons learnt by company during its TQM journey were :
d the weakness in organization thus worked on eliminating them.
ment techniques became simple to understand & persistent
all employees to get extraordinary results
d competitiveness as it focused on developing its own product& prod
ously searched for new ways of keeping people energised.etc..

Q2. Number of warranty returns have increased drastically
compared to just after implementing TQM. What reason can
you attribute to this deterioration?
AREA BEFORE ‘97 AFTER ‘03 NOW ‘04
WARRANTY 3800 ppm 1597 ppm 3209 ppm

RETRUNS
v
v Complacency after achieving good results brings the
performance down –thus Company has to set even higher
goals
v One has to continuously search new ways to keep people
energized
v Improvement technique are very simple to understand,
persistence in implementation is important.

Q3.The Deming Award has catapulted Sona Koyo into the
radar screens of global auto majors looking for a low cost
but world class suppliers. What lessons can Indian auto
component suppliers can take from this revelation?
v Deming award helped the company to enhance the brand

equity of sona koyo
v Customer, perspective employees ,shareholders, industry
observers, and the general public started taking the
company more seriously ,thus build confidence in the
eyes of interested parties.
v It impacted its export plan i.e. it scaled up its exports

Lesson that can be drawn are:
’s focused approach
ntation of quality function deployment (QFD) in order to capture & ut
supplier.
age of auto components.
some special auto parts.
pproach-building Infrastructures to service overseas clients.
n product and production technology helps in improving competitiven
human capital
iness by diversifying to different markets in terms of geography, prod

 THANK U……

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SONA

v Independently, as well as through its network of overseas

manufacturer and leading supplier of-

Toyota Production System(TPS)

agement for objectives (MFO)- to focus on company’s objective thus

d to a Quality System Division comprising of four departments –

ng award which helped the company collect customer / market inform

JIT implicitly assumes that input parts quality remains

constant over time

v Continuously improving all operational conditions, within a

v can be expressed as the organizational structure,

v It included the organizational structure, planning and

d the weakness in organization thus worked on eliminating them.

ment techniques became simple to understand & persistent

all employees to get extraordinary results

d competitiveness as it focused on developing its own product& prod

ously searched for new ways of keeping people energised.etc..

AREA BEFORE ‘97 AFTER ‘03 NOW ‘04

WARRANTY 3800 ppm 1597 ppm 3209 ppm

v Deming award helped the company to enhance the brand

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