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IdentifyingCoreCompetenciesofaCorporation:
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1.IdentifyingCoreCompetenciesofaCorporation:LearningfromToyota(ExceltoolwareCD
included)Preparedfor:PROF.MANOJK.SRIVASTAVAFacultyOperationsManagementBy:
ANSHULGUPTA09P068SectionBDECEMBER2009MANAGEMENTDEVELOPMENT
INSTITUTEGURGAON
2.CONTENTSPageAcknowledgement3ExecutiveSummery41.Introduction1.1Determinantsof
Corecompetencies51.2ManagingCorecompetencies101.3GoodandBadCorecompetencies112.
FrameworkfordevelopingCorecompetencies12ofMDI3.Proposeddesignchangestobefocusedat
MDI174.Conclusions205.References21MDI|IdentifyingCoreCompetenciesofaCorporation:
LearningfromToyota2
3.AcknowledgementItisamatterofgreatprivilegetoacknowledgethehelpandguidance,whichI
receivedfromseveraleminentsources.ItakethisopportunitytothankProf.(Dr.)ManojK.
SrivastavaandProf.(Dr.)S.Chatterjeeforprovidingincessantknowledgeonthesubject.Isincerely
acknowledgethecooperationandhelpofProf.ReetaRainawhogavemevaluableinsightintothe
structuringofthisprojectreport.AnshulGuptaMDI|IdentifyingCoreCompetenciesofa
Corporation:LearningfromToyota3
4.ExecutivesummeryOrganizationscompeteforcustomers,profitandmarketsharewiththeir
productsandservicesthatmeetcustomersneeds.Corecompetenciesareinnovativecombinationof
knowledge,specialskills,proprietytechnologies,informationanduniqueoperatingmethodsthat
providetheproductorservicethat,customervalueandwanttobuy.Thisstudycarriedoutto
understandthedevelopmentofCorecompetenciesofToyotaMotors,andhowcompanieslikeTATA
motorsandMarutihaveimplementedmanyofthosestrategiesofToyota,todeveloptheirownCore
competencies.UsingthecaseofToyota,agenericframeworkhavebeendeveloped,usingwhichany
companyinanysectorcandeveloptheirfutureCorecompetencies.Studystartswiththe
understandingthecriteriaforsomethingtobeconsideredtoaCorecompetency.Aseriesofstrategies
developedandadoptedbyToyotaareexplained.Andthenanoverallunderstandingoftheconceptsis
developedtomakethesestrategiesbepossibletoimplementindifferentsectorslikeFMCGand
servicesectors.IhavedevelopedaframeworkforthedevelopmentoftheCorecompetenciesofMDI,
byjudgingthefunctionalandprocessrequirementsthatwillgiveMDIacompetitiveadvantage.The
mechanismusedisQualityfunctiondeployment(QFD).Andintheend,suggestionsareprovided
regardingwhereMDIshouldfocusmoretodevelopitsCorecompetencies.MDI|IdentifyingCore
CompetenciesofaCorporation:LearningfromToyota4
5.1.Introduction1.1DeterminantsofCorecompetenciesToyotaNorthAmericasmissionstatement:
1.AsanAmericanCompany,contributetotheeconomicgrowthofthecommunityandtheUnited
States.2.Asanindependentcompany,contributetothestabilityandwellbeingofteammembers.3.

AsaToyotagroupcompany,contributetotheoverallgrowthofToyotabyaddingvaluetoour
customers.Oneinterestingaspectofthismissionstatementisthatnowheredoesitmentionprofitsor
continuingimprovementsoreventhestockholders.IntrueJapanesestyle,itisconcernedabouta
largergoalabovethecompetitors.Organizationscompeteforcustomers,profitandmarketsharewith
theirproductsandservicesthatmeetcustomersneeds.Corecompetenciesareinnovativecombination
ofknowledge,specialskills,proprietytechnologies,informationanduniqueoperatingmethodsthat
providetheproductorservicethat,customervalueandwanttobuy.Organizationshavemany
capabilitiesandcompetenciesbutonlyafewofthesearecombinedandintegratedinsuchawaythat
theycanbeconsideredasCorecompetencies.Intheirextraordinary1990HBRarticle,TheCore
competenciesoftheCorporation,GaryHamelandC.K.Prahalad,mountanattackonthetraditional
philosophyofstrategy.AccordingtoGaryHamelandC.K.Prahalad,therearethethreecriteriafor
somethingtobeCorecompetency.Theseare:1.Corecompetencyprovidespotentialaccesstoawide
varietyofmarkets.2.ACorecompetencyshouldmakeasignificantcontributiontotheperceived
customerbenefitsoftheendproduct.3.ACorecompetencyshouldbedifficultforcompetitorto
imitate.Anditwillbedifficultifitacomplexharmonizationofindividualtechnologiesand
productionskills.Toyotascorecompetencieslieinachievingexcellencethroughcontinuous
improvementandwastereduction.Toyotafollowedfivestrategiesforbecomingthenumberone
carmakerintheworldStrategyOne:KaizenKaizenmeanscontinuousimprovement.Many
companiesneglecttotakekaizenseriously,andthosecompaniesarenotindustryleaders.Kaizenisthe
singlemostimportantmanufacturingphilosophyintheworldtoday.Whysomanycompaniesrefuse
orneglecttopracticeit?Theanswertothatmaytakeseveralforms:MDI|IdentifyingCore
CompetenciesofaCorporation:LearningfromToyota5
6.First,kaizenisexpensiveintheshortrun.ForexampleToyotapracticesofshuttingdownthe
productionlinewheneveranysignificantbreachofqualityisdetected.Manymanufacturerswould
ratherfixdefectsattheendofthelineorsendtheirdefectiveproductsintothemarketplaceandhope
forthebestthanstoptheline.Inlongrunofcourse,kaizenistheoptimummethodforbuilding
profits.Second,kaizenrequiresmanagerstogiveuptheonethingthatmakesthemsuperiortothe
staffemployees:information.Theheartofthekaizenisinformationsharingtotheextentthateventhe
lowliest,leastpaidworkerknowseverythingimportantthereistoknowabouttheproductathand.
Third,kaizenacknowledgesthecontinuingexistenceofdefectsandproblemswithoutassigning
blame.TheJapaneseconsiderthattheactofblamingistimewastingactivity.Moreoftenthannotthe
systemistoblame,notaperson.Soworkersareencouragedtodetecttheproblemsandarerewarded
whenproblemsarefixed.Kaizenistheoverarchingphilosophythelargeextentthatprotectsallother
Japanesemanagementpracticeslike:totalqualitycontrol,supportivelaborrelations,industrialrobots,
thesuggestionbox,lifetimeemployment,productivitystudies,zerodefects,andmanyothers.Kaizen
completelyorientedtowardsprocess,notprofits.Whenprofitisthemainmotive,itsnowonderthat
somanymanufacturingplantshaveremainedunchangedoverdozenofyears.Changeisalways
expensive.Inlongrun,ofcourse,improvementprocessisclearlythebetteroptionbecausewasteeven
inthemidstofabundancewilleventuallycatchupandpullyoudown.TaiichiOhno,thefatherof
Toyotaproductionsystemwasknownforhisimaginativestyle.Hegavetheconceptofgenchi
genbutsu,meansobserve:learnthroughcarefulobservationatthesite.Peoplecantfixtheproblem
untiltheyknowwhatisreallycausingit.Forexample,HenryFordgavetheconceptofconveyerbelt
system,bysimplyobservingwhatiscausingthedelayandhowcanprocessbemadefaster.TATA
ACEaminitruckbyTATAlaunchedin2005isanotherexample.TATAwantedtocreateanewline
thatwentbeyondTata'scurrenttruckoffering.Avehiclethatwascheapenoughtotakeonthethree
wheelcargorickshawsinthecountry.BasedonthisbriefTATAdecidedtoapproachusersofcurrent
threewheelcargorickshawsandgettheirfeedbackonafuturefourwheelcargovehicle.Thepersons
whowereinterviewedallwantedacheapvehiclethatcouldtakeacertainamountofproduceor
productsfromvillagetomarket.Howeverwhenaskedwhytheywouldpreferafourwheeleras
comparedtotheircurrentthreewheeler,onerickshawusertold"IfIhadafourwheeler,Iwould
havebettermarriageprospectsinmyvillage,".ThismeantthatMDI|IdentifyingCoreCompetencies
ofaCorporation:LearningfromToyota6
7.besidesthenormaluseofcarryingcargoaround,thefuturecustomeralsoexpectedacertainamount
ofprestigeinowningandrunningafourwheelercargovehicle.Thenewvehiclewasabighitselling
100,000injust20months.Kaizenphilosophymakesnodistinctionbetweenbigandsmalleverything
helpsandeverythingcanbeimproved.KaizenthinkingResultsThinkingLongtermShorttermSmall
improvementsBiginnovationsSmallstepsHugestepsUnrestrictedLimitedPeopleoriented
TechnologyorientedTeamheroesIndividualheroesGradual,smoothAbrupt,volcanic

Maintain/improveScrap/rebuildProcessProfitsInvestinprocessInvestinequipmentWorksbestin
sloweconomicWorksbestinfastgrowingconditionseconomicconditionsConventionsInventions
Kaizenistheonlyindustrialmethodcapablekeepingup.ItremainsthebestexplanationwhyToyota
isnowthemostsuccessfulcarmakerontheplanetearth.In2008Toyotaproduced630,000more
automobilesthanGeneralMotors.StrategyTwo:JustInTime(JIT)TaiichiOhno,builthis
processesonthethemeofwaste.Heonceclassifiedproductionwasteintosevencategories:o
OverproductionoWastemachinetimeoTransportationwasteoProcessingwasteoTakinginventory
oInefficientmotionoDefectivecomponentsThemainvillaininallofthis,accordingtoOhno,is
overproduction.Becausethecostofcarryingaproduceidleishuge.Letssaybywayofexample,that
MarutikeepproducingM800,24hoursaday,7daysaweek,andneverstopsthelinetokeepits
productioncostdown.LetsfurthersaythatdemandofM800fallsinUtterPradeshMDI|Identifying
CoreCompetenciesofaCorporation:LearningfromToyota7
8.andMadhyaPradesh.ThosedarnNorthIndianshavedecidedintheirwisdomtobuyTataNano
instead.ItdoesntmattertoMaruti.Marutiwillkeepthatlinerollingandwilleitherthinkabout
warehousingtheextraM800sorelsediscountthemsharply.ThemostexpensivethingthatMarutican
doistostopproduction.Why?BecauseMarutihasalotofinventorybuiltuptokeepthatproduction
going,andithastoutilizethembyproducingM800ortheywillincreasethecostofproduction
therebydestroyingMarutismargins.But,MarutibeingaJapanesecompanyisfollowingaJIT
system.SoitwouldnotmatterifdemandfallsinUPorMP.AnotherkeytoToyotassuccessinthis
areaisitstrainingofvendorsandsubcontractorstobuyintothesystemaswell.JITsystemrequires
masteryofhundredsofconductorsdirectingthousandsofmusiciansatthesametimetoremain
profitable.Ifanyonesectionsleavesbehind,theaudiencewillloseinterestandprofitswillfadeaway.
Forexample,TATAmotorshavehundredsofsuppliersfortiers,engines,oils,plastics,logisticsetc.
andtheexistenceofsynchronizedcoordinationbetweenthemmakestoproductionofvehiclessmooth.
AnotherimportantconceptinconnectionwithJITisJidohka.Thistermhasbeenastutelytranslatedas
autonomation(distinctfromautomation,whichmeansdoingtheexactsamemachinetaskoverand
over).Inautonomationtheemphasisisonno.StrategyThree:ThesuggestionsystemNooneon
theearthknowsthetaskbetterthantheworkerperformingit.HenryFordprobablylikedthefactthat
hewasreceivinginputsonimprovingthelineforfree.EijiToyotalikedtheideaofturningevery
employeeintoaQualityCircle(QC)expert.Toyotasglobalsuggestionsystemresultsinhundredsof
thousandsofimprovementseveryyear,fromarrangementofaworkteamonproductionfloortothe
qualityofsoapintherestrooms.Nearly90%ofsuggestionsareimplementedandthecashrewardstill
appliesrangingfrom$5to$2000,peridea.SimilarlyTitanimplementedasuggestionscheme,
calledIdeaPlus,servesasaforumforairinggoodideas.Thesuggestionsaresenttodepartmenthead,
whichanalysesthem.Thosethatarefeasibleareimplemented,andthedepartmentheadexplainswhy
therestarenotworkable.Thetotalemployeeinvolvement(TEI)teamadministerstheprocessand
looksatbestpracticesandsuggestions,aswellaswhatothercompaniesaredoinginqualitycircles.
Titantrainsemployeesinqualitycontroltools,andguidesthemtosolveproblems.Oncompletinga
project,employeesmakeapresentation.ThesearejudgedbytheTEIteamandbykeypeopleacross
functions.Thebestpresentationsareenteredinexternalcompetitions,andthoseresponsibleforthem
getmementoes.MDI|IdentifyingCoreCompetenciesofaCorporation:LearningfromToyota8
9.Intheory,theDemingwheelincreasesyourlongtermprospectsforsuccess,ratherthanyoure
simplyreactingtoproblemsasthecropup.PDCA(plandocheckact)cycleshownbelow,can
improveanyprocessevenincrementallyovertime.StrategyFour:TheKanbansystemThenotion
ofperishabilityisthefactoflifeformanymodernorganizations.Commercialairlinestrytoselltheir
unusedseatsjustbeforethetakeoffatrockbottomprices,vegetablessellerstrytosellinthesameway
justbeforemarketclosingotherwisetheirproducewillperish.Newspapersmustsellthedaytheyare
printednobodybuysyesterdayspaper.ThatwasthekeyforOhnoperishability.Steelcanperish,
too!Ironcanperish,too!Tiresareperishableifnotusedandinsteadarestored,wastingspaceand
capital.PerishabilitymovedhimmorethananyotherconcepttopinToyotasfutureonJITthinking.
Andthatswherekanbancomesin.ItsaprecomputerconceptstillinuseatToyotaworldwide
becauseitworksbeautifully.Whenapartisused,theworkercansendthekanbanbackupstreamasa
recordofwhatpartwasusedandasanorderforanewone.Thissystemreducescommunicationtime
andpreventsmostproblemsbecausethestatusofapartisclearandinstantlyobservable.Strategy
Five:AskyourcustomerManysuccessfulcompaniesunderstandintuitivelythatcustomersaremore
thanpassengersonboard.Customersprovidethepopulation,decideswhatcoursetotake,andalso
steertheship.Andonceinawhile,whenthemoodstrikesthem,customersabandontheshipfor
another.Nobodyhasalockoncustomers.Theyarefamouslyfickle.TheydecidethatNewCokewas

nowherenearaspleasingasOldCoke.TheydecidethatCDplayerswerenotascoolasiPods.The
makingofTATAAceminitruckwasonthesimilarlines.MDI|IdentifyingCoreCompetenciesofa
Corporation:LearningfromToyota9
10.1.2ManagingCorecompetenciesMostofothercapabilitiesareimperativetothebusinesss
survival,butnottoitsultimatesuccess.Forexamplefindingarightplace/markettosellyourproduct
orgoodpricingforyourproductareimperativeforsuccessbutforshortterm.Therolesandrelated
actionsfortheHRDfunctioninsupportingacorecompetencebasedstrategy.I.Informthestrategic
planningprocess Provideeducationalresourcesaboutstrategyandcorecompetency Provide
learningopportunitiestoevaluatethepotentialforcorecompetencybasedstrategy Core
competencyassessmentthroughcompetitiveintelligence Analysisandassessmentforstrategic
decisionII.Identifyanddescribecorecompetencies Studyandcodifycorecompetenciesusing
variousmappingandassessmentprocedures Inventorycurrentcompetencyskilllevels
EthnographicstudyofcollectivecompetencyinformallearningProcess Enhancesocialcapitalof
theorganizationthroughnetworkpromotion,rituals,identity,relationships,reflectivepractices
Encouragelearningatadvancedlevelsand/orindiversefields Developaculturethatappreciates
innovation,entrepreneurshipandrisktakingIII.Protectcorecompetencies Complicateand
elaboratelearninganddevelopmentpractices Tightlycoupletheperformancemanagementsystem
Payspecialattentionofcorecompetencyamplifiers Embedculturewithritualsandvalues
Provideongoingskillsmaintenanceandenhancementsforgroupsandteams Increaseemployee
identificationwithandloyaltytothecompany Encouragetheformationanddevelopmentofnew
competenciesMarketingsystemdesignissuesarecriticalandcanbeasourceofcompetitive
advantage.Somecompaniesare,infact,definedmorebytheirmarketingsystemthanbytheir
products.Forexample,theinnovationandphenomenalsuccessofHLLwasnotsomuchinthe
productasinthedistributionthroughcreativechannels.MDI|IdentifyingCoreCompetenciesofa
Corporation:LearningfromToyota10
11.1.3GoodandBadCorecompetenciesAssomebodyoncesaidthatIfyoucantproveit,please
dontuseit.Notallcompetenciesareright.Definingtherightcompetenciesiseverything.Ifyouuse
yourintuitionalone,theprogramwillfail.Butifyougroundcompetenciesinsoundscience,the
programswillpavetheroadforGrowth.Forexample,ifyouhaveahunchthatmanagersinyour
organizationneedto"setclearexpectations"fortheiremployees,putthistothetest.Thebestwayto
testacompetencyistoconducttheresearchwithinyourownorganization.Surveyasmanyemployees
asyoucan,askingthemiftheirmanagerssetclearexpectations.Thencomparethedatayoucollectto
realperformancemetricscustomerengagementorretention,orbetteryet,employeeproductivity.If
youfindasignificantcorrelationbetweenmanagerssettingclearexpectationsandperformanceonthe
job,youhavefoundasolidcompetency.Ifnosignificantrelationshipexists,don'tuseit.MDI|
IdentifyingCoreCompetenciesofaCorporation:LearningfromToyota11
12.2.FrameworkfordevelopingCorecompetenciesofMDIFocusofCorecompetencyiscustomer.
SotheidentificationanddevelopmentofCorecompetenciesshouldbedonebykeepingcustomerat
thecentre.Aframeworkcanbegeneratedforanycorporationonthebasisofwhatisactuallyvalued
bythecustomer.Wecanlistdowntherequirementsofthecustomerandthecompetitorsofferings
andthenemployamechanismtofindoutthespecificfunctionsorprocessdesigncapabilitiesthatneed
tobeimplemented.Despitethefactthatmoreandmoreserviceindustrycompaniesarebeginningto
usequalitycontrol,manypeoplebelievethatpromotingitswideruseinthisfieldwontbeeasy.The
reasonsforthisarethatdataaredifficulttoobtain(quantificationisdifficult)andserviceisnot
measurablematerialobject.Nonetheless,theserviceindustryisfindingitnecessarytoconductquality
assuranceactivitiessuchassettingqualitytargetsandestablishingqualitydesigninordertoclarify
thequalityofitsserviceinrelationtocustomerneeds.Ihavedevelopedaframeworkforthe
developmentoftheCorecompetenciesofMDI,byjudgingthefunctionalandprocessrequirements
thatwillgiveMDIacompetitiveadvantage.ThemechanismusedisQualityfunctiondeployment
(QFD).Qualityfunctiondeploymentprovidesspecificmethodsforensuringqualitythroughouteach
stageofproductdevelopmentprocess,startingwithdesign.Inotherwords,thisisamethodfor
developingadesignqualityaimedatsatisfyingtheconsumerandthentranslatingtheconsumers
demandsintodesigntargetsandmajorqualityassurancepointstobeusedthroughouttheproduction
stage.Designreviewisalsoveryimportantsinceitrepresentsanopportunitytoinspectthedesign
itself.Aproduct/servicequalitycanbeassuredthroughthequalityofsubsystems,thequalityof
subsystemsthroughthequalityofparts,andqualityofpartsthroughprocesselements(controlitems).
MDI|IdentifyingCoreCompetenciesofaCorporation:LearningfromToyota12

13.FigureshownbelowistheoutlineofHouseofQuality:ITRADEOFFMMATRIXPORT
DESIGNACHARACTERISTICSNCECUSTOMERRELATIONSHIPMATRIXCOMPETITIVE
REQUIREMENTSASSESSMENTTARGETVALUESIncaseofMDI,therearefourdifferent
typesofcustomers.Theyare: Corporatecustomer(consultancyandresearchwork) PostGraduate
ProgrammeinManagement(PGPM)students ExecutiveManagementProgramme(EMP)students.
StudentsExchangeProgramme(SEP)studentsAndallthesecustomershavedifferentrequirements,
exceptfewforwhichtheygivedifferentrelativeweights.Forexample,corporatecustomershavevery
stringenttimelimitrequirementsbutforPGPMstudentsthereisnosuchrequirementandforEMP
studentsfastandflexibletimingisofimportancewithoutanyqualitycompromise.SEPstudentswill
givemoreimportancetofacilitiesandcorporatevisitsbutPGPMstudentswillgivemostimportance
tofinalplacements!MDI|IdentifyingCoreCompetenciesofaCorporation:LearningfromToyota13
14.IhavelistedsomeofthemajorcustomerrequirementsforPGPMstudentsandtheirassumed
importance:IMPORTANCE1SNO.CUTOMERREQUIREMENTS101Goodplacements102
Pedagogyfollowed83Qualityofthefaculty94Infrastructurefacilities65Industrialexposure96
Admissionprocedurefollowed67RankingofBschool88Feechargedforthecourse69Cultureof
Bschool610Responsivenessofadministration5InthesecondstageofQFD,wedoacompetitive
assessment.Onthescaleof1to5(with5beingthehighest),studentsevaluateourservice(i.e.
providingMBA)againstcompetitorBschoolsofthecountry.MDIOTHERSIMPORTANCEB
SCHOOLSNO.CUTOMERREQUIREMENTS110IIIIIIIVV1355544Goodplacements10
2455444Pedagogyfollowed83Qualityofthefaculty94554444444335Infrastructure
facilities65Industrialexposure95554436Admissionprocedurefollowed645555471543
20RankingofBschool88Feechargedforthecourse61113459555555CultureofB
school610Responsivenessofadministration5344434MDI|IdentifyingCoreCompetenciesofa
Corporation:LearningfromToyota14
15.Inordertochangetheservicedesigntoservicerequirements,weneedtotranslatethose
requirementstomeasurabledesigncharacteristics.Welistsuchcharacteristics(centralizationof
database,facultyexperience,libraryfacilities,etc.)acrosstopofthematrixasshownbelow:
QUALITYAveragenoofliveprojectsdonebyaCHARACTERISTICSconsultancyprojectsdoneby
theAveragenoofinternationalvisitsNoofresearchpaperpublished/Averageindustrialexperienceof
PercentageofassignmentsandNoofGuestlecturesinanyearAveragepercentileofstudentsNoof
collaborationswithtopprojectsintotalassessmentsCentralizationofdatabaseWorkextofreshers
ratioComputer/technologyTeacherstudentratioClassroomfacilitydonebyfacultyLibraryfacility
hostelnmesscollegesstudentfacultyfacultyCUSTOMERREQUIREMENTS
GoodplacementsPedagogyfollowedQualityofthe
facultyInfrastructurefacilitiesIndustrialexposureAdmission
procedurefollowedRankingofBschoolFeecharged
forthecourseCultureofBschoolResponsivenessofadministration=
Weakrelationship=Moderaterelationship=StrongrelationshipMDI|IdentifyingCore
CompetenciesofaCorporation:LearningfromToyota15
16.Theservicedesigncharacteristicsareinterrelatedtoo,asshownintheroofofthehouseinthe
figurebelow.Forexample,greateruseoftechnologywillimprovetheclassroomfacilitiesbutlarger
studentteacherratiowillimpacttheexistingfacilitiesprovidedbythelibrary.Weneedtotakeall
thesefactorsintoaccountwhendeterminingfinaldesign(seebelow).THECOMPLETEHOUSEOF
QUALITYFORMDIMDI|IdentifyingCoreCompetenciesofaCorporation:LearningfromToyota
16
17.3.ProposeddesignchangestobefocusedatMDIIfwestudythetargetchangesshownbelowwe
findthat,notallqualitycharacteristicsaretobefocusedequally.Thereareafewareaswhich
demandsmoreattentionthanothersandwillimpacttheoverallperformanceoftheorganizationtoa
greaterextent.PercentageofassignmentsassessmentsAverageindustrialexperienceoffaculty
AveragenoofliveprojectsbyastudentNoofcollaborationswithtopcollegesAveragenoof
internationalbyfacultyNoofresearchpaperpublishedNoofGuestlecturesinanyearAverage
percentileofstudentsCentralizationofdatabaseWorkextofreshers'ratioComputer/technology
TeacherstudentratioClassroomfacilityLibraryfacilityhostelnmessDifficulty66251395108
85724Maxrelationshipvalue999393999999399Weight/importance24836233349150
103170185166201238200107164341Relativeweight8.2121124.93.45.66.15.56.77.9
6.63.55.511Listingthemprioritywise:(relativeweight>6)1.Libraryfacility2.

Computer/Technology3.Averagenoofliveprojectsdonebystudents4.Centralizationofdatabase5.
Averagepercentileofstudents6.Averagenoofinternationalvisitsbyfaculty7.Workex.To
freshersratio8.NoofresearchpaperspublishedbyfacultyMDI|IdentifyingCoreCompetenciesof
aCorporation:LearningfromToyota17
18.Now,aswehaveidentifiedthemostimportantdesignparametertobefocusedupon,nextstepis
toimplementtheprincipleswelearnedfromToyota.Letschoosecomputer/technologyandthenwe
applyallfivestrategyonit.Strategyone:KaizenAswelearnedKaizensimplymeanscontinuous
improvements.Useoftechnologyisnotgoingtobecheapinitially.WeatMDIneed:1.WiFi
connectivityinthewholecampus2.BetterCollegewebsite3.Abetteremailfacility4.Modern
printersandcopiers5.Laptopsforfaculty6.Modernizationofcomputerlab,etc.Butalloftheseare
goingtocost.Whatwecandoisfollowstepbystepupgradationofthesefacilitiesandfollowthe
pathofcontinuousimprovement,sothatwedontspendtoomuchononething.Alsowewillgetto
learnhowtocreateacoordinatedatmosphereinwhicheveryactivitysupportsother,therebygivingus
overalloptimalperformance.Strategytwo:JustinTimeInserviceindustrylikeeducation,JIThas
averyimportantroletoplay,becausewecantpreserveaservice,likeaproductwhichcanbe
consumedlater.SomeoftheareaswhereJITcanbeimplementedfortechnologicaldesign
improvementsisJITstudentsresultdeclaration.Presentlytheretimelagof15daystoamonthfor
declaringaresultandslowsdownlotofotheractivitiestoo.Conductingonlineexamscanbea
solution.Strategythree:ThesuggestionsystemPeoplewilleitherarguethatthereisstudentcouncil
ortheywillsaythatwealreadyhave910suggestionboxeshangingoutsideacademicbuildings,sowe
needasuggestionsystem.Majorityofcompaniesdohavesimilarkindofemployeecouncilor
customercouncilandhangingboxesoutsidetheirpremises,butnotallofthemaresuccessful!We
needasuggestionsysteminwhichpeoplearewelcomedtogivesuggestiononwhatevermatterthey
want.IamsureinMDItherewillbemorethanfewpeoplewhowillcomeoutwithideaswhichif
getsimplementedcanbringoutsmallMDI|IdentifyingCoreCompetenciesofaCorporation:
LearningfromToyota18
19.improvementsandoverthetimecantransformthewholesystem.Andforthattechnologycan
playagreatpartbybuildinganonlineplatform.Strategyfour:KanbanThereisdireneedofa
kanbansysteminourplacementcell.Why?BecauseduringsummersIsawthatevenmorethat180
studentswerefindingtohandle4050companiesinaday!Andresultofthatiswelostmany
summersoffers.WhileonestudentwasinaprocessX,therewasawholegroupbeingdelayedforthe
processY.Inbetweencompanyofficialpickedwhattheyhad.Strategyfive:AskyourcustomerAsI
mentionedearlierthatmanycompaniesconsideringcustomersmorethanthepassengersonboard.And
forserviceindustrywhereonedoesnothaveanyquantitativetooltomeasuretheexactqualityofthe
service,customerhasaveryimportantroletoplay.Wecantexpecthonestfeedbackofadministration
orfaculty,justafewhoursbeforetheexamsfrom300students!Weneedasystemwhereeverybody
shouldbejudgedJIT.MDI|IdentifyingCoreCompetenciesofaCorporation:LearningfromToyota
19
20.4.ConclusionBasedontheabovestudyalistofcompaniesisprovidedbelowwiththeirrespective
Corecompetenciesandstrategiesadoptedbythentoachievethem:CompanyCorecompetency
StrategyManufacturingsector:ToyotaEfficientmanufacturingContinuousimprovementBhartForge
manufacturingexcellenceKanban,integratedoperationsServicesector:InfosysNetworking
equipmentIntegrationofglobalfacilitiesGoogleHarvestingthevaluefromCustomerfocused
massivelyscaled,complexhumanactivityFMCGsector:P&GProductmarketingAskingcustomers,
R&DHLLDistributionchannelIntegratedmarketingchannelsElectronicgoods:SonyMiniaturization
R&D,continuousimprovementsDellCostleadershipPursuingmultisaleschannelopportunities
CountryCorecompetencyStrategyChinaLowcostmanufacturingSupportingpoliciesMDI|
IdentifyingCoreCompetenciesofaCorporation:LearningfromToyota20
21.5.ReferencesBooks:AkaoYoji,QualityFunctionDeployment,IntegratingCustomer
RequirementsintoProductDesignCorporationThatChangedtheWorld:Toyota,byK.Dennis
ChambersLalRajiv,QuelchJoneA.andRanganV.Kasturi,MarketingManagement.366367.The
Toyotaway:FieldbookbyJeffreyK.LikerandDavidMeierResearchpapers:ClardyAlan.The
strategicroleofHumanResourceDevelopmentinmanagingcoreCompetencies,HumanResource
DevelopmentInternational,Vol.11,No.2,April2008,183197LjungquistUrban,HowDoCore
CompetenciesDiscriminate?IdentificationofInfluencingSimilaritiesandDifferences,Knowledge
andProcessManagement,Volume14Number4pp237247(2007)PrahaladC.K.andHamel,G.

(TheCoreCompetencyoftheCorporation.HarvardBusinessReview,MayJune7991,1990Rath
Tom,GoodCompetencies,BadCompetencies,GallupManagementJournal,May12,2005RyanK.
Lahti,IdentifyingandIntegratingIndividualLevelandOrganizationalLevelcoreCompetencies,
JOURNALOFBUSINESSANDPSYCHOLOGY,Volume14,No.1,Fall1999TruesdellJames,
FocussingonCorecompetencies,SupplyHouseTimes,October2001UtaWilkens,DanielaMenzel,
PeterPawlowsky,InsidetheBlackbox:AnalysingtheGenerationofCoreCompetenciesandDynamic
CapabilitiesbyExploringCollectiveMinds.AnOrganisationalLearningPerspective,Management
Revue,vol15,issue1,2004VytautasBoguslauskas,GodaKvedaraviciene,Difficultiesinidentifying
CompanysCoreCompetenciesandCoreProcesses,ISSN13922785InzinerineEkonomik
EngineeringEconomics(2).2009Websites:www.injuryed.org/competencies.htm
http://money.cnn.com/magazines/fortune/mostadmired/top20/http://www.qfdonline.com/templates/
http://www.pg.com/http://www.tata.com/www.dell.co.inhttp://www.infosys.com/global
sourcing/casestudies/pages/networkingwww.bharatforge.comcasestudy.aspxMDI|Identifying
CoreCompetenciesofaCorporation:LearningfromToyota21

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