Successfully Conceived and Implemented “Six Sigma as Strategy” to Transform Perennial Sick Division into Turning Not Only to Earn Profit, But to Achieve Business Excellence Performance in Crompton Greaves Organisation

Crompton Greaves a Multi-Product Organisation in 1970s had its Manufacturing plants located only in
Bombay – at Worli and Kanjur locations. In the Consumer Product Group, its Fan Manufacturing Unit
was located in Kanjur, Bombay since early 1960. Under License and Permit Raj system, in those days
the Govt of India did not allow production to go beyond 125% of installed capacity. As Market Leader
Crompton Greaves had occupied No.1 position in the country and so wanted to maintain its lead in
Market with increased volume of products. Hence, partnering with Goa Govt. a Joint Venture was
established for Manufacturing in Ponda in Goa in 1985 with a name as Goa Electrical Fans Ltd
(GEFL). Under this arrangement, Crompton Greaves Bombay would buy everything that is produced
at GEFL Unit and market under its brand name. The unit earned decent profit for the next 6 to 7
years. Later, for reasons known to them Govt. of Goa withdrew their participation in Joint Venture.
Thus, the Manufacturing Unit became part of Crompton Greaves and became one of Divisions in
Consumer Product Group.
It was around this time, this Division slipped into loss. Management tried many methods in the next 3
to 4 years to prevent making loss. However these efforts did not yield any significant results.
It was around this time, my senior – President of Corporate R & D and Quality, Mr. Mukherjee offered
this assignment to try my strategy to create turnaround in this Division.
With past experience of product knowledge and manufacturing experience behind me, I chalked out to
implement “Six Sigma as a part of Quality Strategy” as quick and permanent results were needed. I
drew up the step by step methods and put the implementation on fast track.
After 2 years, the Goa Division rewrote the history of not only earning high profit, but showed
paradigm shift by excelling in all round Divisional performance. In addition, as response time got
shrunk, Exports order inputs got doubled with earning decent profit and beating the past tradition of
incurring loss.