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TQM at Pidilite Industries

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Pidilite Industries Limited is an Indian based adhesive and sealants manufacturing company which was

incorporated on 28th July 1959. Since then it continues to be the market leader in adhesive industry with
75% market share and with revenue mounting up to USD 700 million in 2016. To enjoy the monopoly in
the market, Pidilite Industries has used expansion by acquisition strategy. They acquired every possible
competitor regardless of their size as long as it appeared as a threat for Pidilite Industries.

Pidilite Industries Limited is a much diversified company with more than 70 manufacturing units across
India. It consists of five different divisions, namely Fevicol division, Consumer Products division,
Industrial products division, Construction Chemicals division and International Business Operations
division. The consumer products is further sub divided into two - arts and fabric stationary products,
maintenance products. The International business operations division takes care of imports and exports of
the products. Apart from exporting its products to over 40 countries, it also import some products from
the international market and sell it in the name of Pidilite.

This diversity and complexity of the organization, with multiple manufacturing units and lots of suppliers
and varied customers called for the need to implement Total Quality Management in Pidilite Industries.
They believed that TQM would be one tool that would encompass all diverse divisions and takes equal
commitment from senior management to shop floor operators. Apart from this primary aim, Pidilite
Industries was then receiving quite a number of customer complaints because of the inconsistency
between expectancy and delivery. The company witnessed wastages due to errors, application issues and a
considerable number of court cases had piled up because of regulatory non-compliances. At this point of
time, Pidilite Industries realized that it was the high time for them to implement TQM and so did they.

Like every other company the implementation was a cumbersome process in Pidilite Industries as well.
Some employees were reluctant to accept the change because they felt they were already the market
leader in adhesive industry and implementation of TQM would do nothing to improve it. An extensive
training was carried out for all the employees from senior level to operational level, regarding the fact that
customer needs changes over time so delivering the same product which they had been manufacturing
years ago thereupon will no longer satisfy the today’s needs. The training build knowledgeable and
motivated workforce, enhanced their morale to work together for quality improvements. Through the
sales people R&D team figured out the emerging needs and the prevailing issues faced by the customers.
On implementation, Pidilite Industries reinforced their objective of satisfying the customer requirement
on time by keeping customer as the first priority. They implemented a unique club called Fevicol
Champions Club for its customers such as carpenters, contractors, construction workers etc. It is a
community for their personal & professional growth, to be recognized for their efforts and to learn new
methods bringing them growth, both socially & professionally. It has also implemented `Small Group
Activities’ (Quality Circles), Pragati (Kaizan) and `Sadachar’ under its Total Quality Management (TQM)
programme. Any in-house rejection problem is immediately solved by cross-functional team by looking
into the problem in the eyes of customer. At the senior management level, quality upgradation in core
activities is reviewed by the Divisional Functional Committee (DFC) and Profit Improvement Plan
meetings (PIP) periodically.

The after-effects of TQM was phenomenal- increased efficiency, enhanced labor productivity, reduced
quality cost and increased productivity. Above all, the direct implication of TQM was customer
satisfaction which was witnessed through feedback survey collected from the customers. Gradually, the
bottom line also improved. Since Pidilite is a volume based business the defects in manufacturing are
significant thus affecting their profitability, which is the main focus. So, Pidilite Industries are planning to
embed Six Sigma within a course of 3-4 years. Pidilite Industries has achieved three ISO certifications
ISO 9001:2008, ISO 14001, OHSAS 18001. The regular auditing, updating and upgrading of quality
management system keeps the company successful and well acknowledged among the competitors.
The information was collected from Chief Quality Assurance Officer, Basavaraj Meti, Pidilite Industries,
Mumbai through telephonic interview.

Profile: www.linkedin.com/in/bhmeti
Phone no: 9769749018

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