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    Crompton Greaves - PPT Teachers Notes

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    nikhincc
    Crompton Greaves faced problems like low profitability and an unfavorable seller's market from 1980-2000. To solve this, they introduced total quality management at their Nasik plant, had workers visit customers to understand problems, and adopted a market-driven approach and continuous improvement practices. These solutions improved operational efficiency as seen by reduced inventory levels, increased inventory turnover, and higher productivity and profits. However, fortunes declined again due to low spending on research and development and low barriers to entry in their industry.

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    Crompton Greaves - PPT Teachers Notes

    Uploaded by

    nikhincc
    43 views5 pages
    Crompton Greaves faced problems like low profitability and an unfavorable seller's market from 1980-2000. To solve this, they introduced total quality management at their Nasik plant, had workers visit customers to understand problems, and adopted a market-driven approach and continuous improvement practices. These solutions improved operational efficiency as seen by reduced inventory levels, increased inventory turnover, and higher productivity and profits. However, fortunes declined again due to low spending on research and development and low barriers to entry in their industry.

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    Crompton Greaves.ppt Teachers Notes

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    Crompton Greaves.ppt Teachers Notes

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    Crompton Greaves faced problems like low profitability and an unfavorable seller's market from 1980-2000. To solve this, they introduced total quality management at their Nasik plant, had workers visit customers to understand problems, and adopted a market-driven approach and continuous improvement practices. These solutions improved operational efficiency as seen by reduced inventory levels, increased inventory turnover, and higher productivity and profits. However, fortunes declined again due to low spending on research and development and low barriers to entry in their industry.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    43 views5 pages

    Crompton Greaves - PPT Teachers Notes

    Uploaded by

    nikhincc
    Crompton Greaves faced problems like low profitability and an unfavorable seller's market from 1980-2000. To solve this, they introduced total quality management at their Nasik plant, had workers visit customers to understand problems, and adopted a market-driven approach and continuous improvement practices. These solutions improved operational efficiency as seen by reduced inventory levels, increased inventory turnover, and higher productivity and profits. However, fortunes declined again due to low spending on research and development and low barriers to entry in their industry.

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    of 5

    CROMPTON GREAVES

    LEARNINGS FROM CASE


    STORY FROM 1980 -2000 DOWN UP-DOWN

    PROBLEMS& SOLUTIONS
    All time low profitability
    Seller to buyers market
    Improve operational efficiency
    Introduce TQM- Nasik Plant
    Workers visit to learn customer problem
    Market Driven approach
    Kaizen
    SOLUTIONS
    U Shape Layout
    Kitting
    Inventory 2.87-2.35
    Inventory turnover ratio 2-7
    CFT
    Reaping Benefits
    T/over >Rs,1000 Cr
    Productivity 6-12 lakhs//man year
    Profit 6X
    Training manhours 1-3%
    But Down Again WHY?

    Reversal of fortunes
    Low R&D Spend
    Low entry Barrier

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