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defects. The plan for the ensuing year, is to extend this methodology to other<br />
products of the Company. Towards this end, a second phase of training and<br />
implementation has already been initiated.<br />
Quality Certifications<br />
During the year, an additional eight of the Company’s Divisions have upgraded to ISO<br />
9001:2000 version of Quality Management System Certification. Hence, presently 22<br />
out of the Company’s 26 Divisions/Regions are accredited with ISO 9001:2000<br />
Certification. Out of these, five Divisions are also accredited with ISO 14001<br />
Certification for their Environment Management Systems. The Industrial Transformer<br />
Division at Malanpur is amongst the few Units in India to have achieved both ISO<br />
14001 and OHSAS 18001 Certification for Occupational Health and Safety<br />
Management System.<br />
To increase the acceptability of the Company’s products in the International market,<br />
many of these continue to be tested and certified at prestigious institutes like KEMA<br />
(Netherlands), NEMA (USA), BASEEFA (UK), CESI (Italy), DOE (Department of Energy,<br />
USA), CPRI (India) and conform to ANSI, CEMEP and IEEMA standards.<br />
The Company’s<br />
e-sourcing efforts<br />
resulted in a<br />
material costs<br />
savings of<br />
Rs. 4.78 crores.<br />
Productivity Enhancement Initiatives<br />
Having adequately established the Crompton Greaves Productivity System (CGPS) at<br />
all the Company’s Divisions, the thrust for the year under review was going beyond<br />
these norms, to improve productivity further, through worker co-operation and<br />
focussed engineering methods. The scope of coverage with respect to operations and<br />
employees has been enlarged for coverage of ancillary manufacturing operations and<br />
also non-permanent employees for better monitoring of productivity and manpower<br />
utilisation. A self-audit mechanism has been initiated, which together with Corporate<br />
Audits and Senior Management Reviews ensure effective implementation. Software<br />
capability is also being expanded for better Management Information Systems on<br />
CGPS. To support the thrust on engineering method improvements, capital<br />
expenditure on Plant and Machinery during the year has been significantly stepped<br />
up to enable long-term improvement in productivity capabilities.<br />
E-sourcing Initiatives<br />
During the year, the Company’s e-sourcing efforts resulted in a material costs savings<br />
of Rs. 4.78 crores, achieving a success rate of 50 per cent of the total savings<br />
identified through quick/full source events. Capacitors, bearings, paints, cartons,<br />
stampings were some of the products obtained through e-sourcing. However in view<br />
of the increasing price fluctuations of basic raw materials like copper, steel,<br />
aluminium etc. the Company could not achieve the desired savings in these areas<br />
although these remain the thrust area for the Company.<br />
IT Initiatives<br />
During the year, the Company’s IT further strengthened its role as a business partner,<br />
concentrating its efforts on areas that would strengthen reporting systems for<br />
actions, to improve profitability. The Inventory Management System was<br />
<strong>com</strong>prehensively redesigned, and the Order Management System was also<br />
strengthened through a web-based software to enable dealers to monitor their order<br />
status online. Considerable investments have also been made in hardware and<br />
software, to respond to the Company's ever increasing IT needs; a changeover has<br />
been effected from an NT-based system to a Unix-based system; the network<br />
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