Cost management key to 'Make in India' campaign

Total Cost Management (TCM) as an operational strategy will not only make the Indian manufacturing sector more competitive, but also help the country achieve inclusive growth.

It is very important from the perspective of the ‘Make in India’ call by Prime Minister Narendra Modi to create wealth for the masses, opined participants at the Confederation of Indian Industry’s (CII) 13th International Conference on Total Cost Management held in Bengaluru on Tuesday.

Addressing delegates, CII past President and Tata Steel former Vice-Chairman B Muthuraman said, “Manufacturing has to be competitive in order to survive, grow and to create wealth. Cost is no more a finance function. It is HR, operating and marketing functions. In all, it is a strategic function. The journey from cost understanding to maturity has three steps: standardisation of present processes, improvement of the process to the next level and standardising an improved process. This three-step process should be a continuous affair to set standards, improve standards and should finally lead to innovation.”

Standardisation of processes leading to innovations will translate into better value. Simplifying processes and reskilling people should be a continuous affair in the overall cost management process.

Toyota Kirloskar Motor (TKM) Vice-Chairman Vikram Kirloskar said, “There was sluggishness in the Indian automobile industry during the past two years and low volumes across companies created new challenges. Minimised cost through flexible line production, simplified processes, and reskilling people are some of the measures that have worked in achieving TCM.”

Charles Tilley, CE, CIMA, London, said, “CIMA and CII have joined hands to create a strategic approach to cost management. CII is developing online self-assesment diagnostic tools within the excellent TCM framework. Sustainable competitiveness should go hand in hand with cost competitiveness.”

Bhaskar Bhat, chairman, Cost Congress 2014, said, “Cost Congress has made significant progress in the Indian industry. Cost to marketing is generally seen as a negative connotation. But, CII’s TCM division took the initiative to make TCM a national movement.

CII has been organising cost awareness programmes for industries. The CII-TCM maturity model is unique in India.”

“The TCM maturity framework started few years back has gained momentum. About 50 organisations were assessed so far through their participation for the CII-TCM awards.
These awards will be a major driver for the TCM movement in India,” TCM Working Group member A N Raman said.

On the occasion, CII-TCM maturity model awards were presented to: Grundfos Pumps (India) Pvt Ltd, Subros Ltd, EID Parry (India) Ltd, Coromandal International Ltd, Nippon Paint (India) Pvt Ltd, Kirloskar Brothers Ltd and Century Rayon, ITC PSPD.