Business Growth

Crompton Greaves(CGL)

OBJECTIVES

 Analyze the steps taken by Crompton Greaves at its Nashik unit to improve operational efficiency. Comment on the advantages of the single piece flow (SPF) system adopted by the company?  Study the steps taken at the Nashik unit on the people and housekeeping fronts to supplement the overall ‘value added management' initiative. In what way did they help the unit in improving efficiency?

1) Introduction:

Crompton Greaves (CG) is part of the US$ 3 bn Avantha Group, a conglomerate with an impressive global footprint. Since its inception, CG has been synonymous with electricity. In 1875, a Crompton 'dynamo' powered the world's very first electricity-lit house in Colchester, Essex, U.K. CG's India operations were established in 1937, and since then the company has retained its leadership position in the management and application of electrical energy. Today, Crompton Greaves is India's largest private sector enterprise. It has diversified extensively and is engaged in designing, manufacturing and marketing technologically advanced electrical products and services related to power generation, transmission and distribution, besides executing turnkey projects. The company is customer-centric in its focus and is the single largest source for a wide variety of electrical equipments and products. With several international acquisitions, Crompton Greaves is fast emerging as a first choice global supplier for high quality electrical equipment.

1.1) Problem for CGL:

Kewal K. Nohria, CEO of Crompton Greaves said “In 1982 and 1983, industry in general and the electrical industry in particular was gripped by recession, and the scenario changed from seller's market to a buyer's market. Falling demand combined with higher production capacity and employment levels resulted in declining productivity during 1982-84 at Crompton Greaves.” The CGL management realized that it would have to take steps soon enough to put the company back on track. Nohria...