GCSL: Glossary of Terms and Abbreviations

ABEC Apex Business Excellence Council CRISP Cost Reduction Initiatives for Sustained
Profitability
ABP Annual Business Plan
CRM Customer Relationship Management
AGM Assistant General Manager
CS Constructive Solutions
AMC Annual Maintenance Contract
CSAT Customer Satisfaction
AQUIP Annual Quality Improvement Plan
CSI Customer Satisfaction Index
ARAI Automobile Research Association of India
CSM Chief Sales Manager
ASC Annual Service Contract
CSR Corporate Social Responsibility
ASR Average Sales Realization
CSat Customer Satisfaction
B/D Breakdowns
CSS Customer Support System
BD Business Development
Cum. Cumulative
BE Business Excellence
Db Decibel
BELS Business Excellence Leadership System
DC Departmental Council
BESC Business Excellence Sub Council
DET Diploma Engineer Trainee
Big Hoary Audacious Goals, as defined by Jim
BHAG Collins in his book Good To Great DGMS Director General of Mines Safety
BIS Bureau of Indian Standards DM Divisional Manager
BM Benchmark DMS Dealer Management System
Bn/ bn Billion DSat Dealer Satisfaction
BoD Board of Directors DSI Dealer Satisfaction Index
BOD Bio-Oxygen Demand E & I/ E&I Evaluation & Improvement
BOM Bill of Materials ECN Engineering Change Notice
BP Business Plan EE Employee Engagement
BPR Business Process Re-engineering EES Employee Engagement Survey
BSC Balanced Score Card EG Executive Grade
CAD Computer Aided Design ELP Enterprise Level Process
CAPEX Capital Expenditure EPM Enterprise Process Model
CC/ CCs Core Competency/ Competencies EQUIV. Equivalent Machine
M/C
CE Construction Equipment
ERM Enterprise Risk Management
CEO Chief Executive Officer
ERP Enterprise Resource Planning
CFO Chief Financial Officer
ESI Employee Satisfaction Index
CFT Cross Functional Team
ESR Executive Sanction Request
CII Confederation of Indian Industries
ESS Employee Satisfaction Survey
CIL Coal India Limited
FEA Finite Element Analysis
CMIE Centre for Monitoring Indian Economy
FIBRES Fact & Information Based Reverse Engineering of
CMPDIL Central Mine Planning & Design Institute Limited
Strategy
CMRI Central Mining Research Institute
Fig. / Figs. Figure/ Figures
CMVR Center Motor Vehicles Rules
FIRE- I Focused Initiatives for Reducing Expenses
CoB Committee of Board
FIRE- II Focused Initiatives for Revenue Enhancement
COBIT Control Objectives for Information & Related
FMC Full Maintenance Contract
Technologies
FOC Free of Cost
COD Chemical Oxygen Demand
FOPS Falling Object Protection System
COSO Committee of Sponsoring Organization
3
FC Functional Council MBESC Marketing Business Excellence Sub Council
FY Financial Year MBR Monthly Business Report
GAAP Generally Accepted Accounting Principles MCF Machine Clearance Form
GET Graduate Engineer Trainee MD Managing Director
GM General Manager MEP Management Education Programme
GMP General Management Programme Mfg Manufacturing
GRI Global Reporting Initiatives Mgmt Management
HIRA Hazard Identification & Risk Assessment MICA Mining, Infrastructure, Construction, Agriculture
HPMS HP Managed Services MIS Management Information System
HR Human Resources MKT Market
IAL International Auto Limited Mktg Marketing
ICAP Institutional Customer Acquisition Process Mn / mn Million
ICRA Indian Credit Rating Agency MOU Memorandum Of Understanding
IDTR Indo Danish Tool Room MPA Major Performance Area
IIM Indian Institute of Management MQS Mean Quality Score
IM Industry Managers MRP Material Resource Planning
IME Indian Mining Exhibition MSDS Material Safety Data Sheets
IMME International Mining & Machinery Exhibition MT Management Trainee
INFRA Infrastructure MTTC Mean Time to Close
IR Industrial Relations MTTR Mean Time To Restore
IRR Internal Rate of Return MVC Moving Variable Cost
ISM Indian School of Mines NIT Notice Inviting Tenders
ISO Indian Standardisation Organisation NOS. Numbers
IT Information Technology NPI New Product Introduction
JD John Deere NPIC New Product Introduction Committee
JDT Joint Development Team NYSE New York Stock Exchange
JIPM Japan Institute of Plant Maintenance ODRF Order Daily Replenish Frequently
JIT Just In Time OE Original Equipment
JMT Jamshedpur Machine Tools OHSAS Occupational Health & Safety Assessment Series
JV Joint Venture OP Organisational Profile
KA Key Account PAT Profit After Tax
KM Site Knowledge Management Site PBT Profit Before Tax
KMS Knowledge Management System PDCA Plan Do Check Act
KSC Key Strategic Challenge PDM Product Data Management
KSO Key Strategic Objective PF Provident Fund
KWP Key Work Processes PG Post Graduates
L&L Listening & Learning PIP Plant in Plant
L&T Larsen & Toubro PMS Performance Management System
LT Long Term PPC Production Planning & Control
M&A Merger & Acquisition PPM Product Portfolio Matrix
MAINT. Maintenance Engineering PPR Product Performance Report
ENGG.
PQCDSM Productivity, Quality, Cost, Delivery, Safety, Morale
MBE Management of Business Ethics
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PRIDE Performance Redefined thru Ideas for Driving SWOT Strength, Weakness, Opportunity & Threat
Excellence
TA Travel Allowance
Proj. Project
TCO Total Cost of Ownership
PRT Program Run Time
TCOC The Team Code of Conduct
PSF Principal Success Factors
TE Telco Employee
PSU Public Sector Unit
TISCO Team Iron & Steel Company
PWC Price Waterhouse Coopers
TKC Team Knowledge Chain
QA Quality Assurance
TM Telco Managerial (Grade)
QIP Quality Improvement Project
TMDC Team Management Development Center
QLP Quality Linked Pay
TML Team Motors Limited
QMS Quality Management System
TMTC Team Management Training Center
QSHE Quality Safety Health and Environment
TO Turnover
R&D Research & Development
TOC Theory of Constraints
R&R/ Reward & Recognition
TPM Total Productive Maintenance
R&R
TQMS Team Quality Management Services
Re/ Rs Indian Rupee/ Rupees
TS TML Supervisor
Ref Refer
TTL Team Technologies Ltd.
ROCE Return on Capital Employed
UAE United Arab Emirates
ROPS Rolling Over Protection System
VOC Voice of Customer
SA Strategic Advantage
VP Vice President
SAARC South Asian Association for Regional Co-
operation V-Sat Vendor Satisfaction Index
SAIL Steel Authority of India Ltd. VSI Vendor Satisfaction Index
SAP Systems Application Products VSS Vendor Satisfaction Survey
SC Sub-Council WACC Weighted Average Cost of Capital
SCM Supply Chain Management WAN Wide Area Network
SHE Safety Health & Environment WMS Workforce Management System
SIPOC Supplier, Inputs, Process, Output, Custpmer XLRI Xaviers Labour Relations Institute
SISL Siemens Information & Systems Ltd. YI Young Indian
SLA Service Level Agreement YOY Year-on-year
SMH Standard Man Hour ZBC Zero Based Costing
SNTI Shavak Nanavati Technical Institute
SOD Segregation of Duties
SOP Standard Operating Procedure
SOX Sarbanes Oxley Act
SPAR Special Pricing Assistance Request
SPLP Service Performance Linked Pay
SPM Suspended Particle Matter
SPDP Strategic Planning & Deployment Process
Sr. Senior
SSPC Spares & Service Profit Centre
ST Short Term
START Society for Technical Assistance & Remedial
Teaching
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 GCSL: Organisational Profile
P.1 Organizational Description strategy planning exercise (the last one being in Feb 09 to
Global Construction Solutions Co. Ltd (GCSL), the market retune the future growth plans in the context of economic
leader in earth moving machines in India, is well known for its downturn). The revised business excellence directions are
wide range of highly efficient and reliable machines used for a shown in Fig. P-02. GCSL measures the Global Rank by
variety of material handling and construction jobs at sites sales turnover which is expected to grow to US$ 2 billion by
such as mines, roads, bridges, dams, irrigation projects, real
estate construction etc. GCSL aims to enhance the 2015 with international operations & exports accounting for
operational performance of its customers by offering 30% of the total turnover.
Constructive Solutions (CS) comprising suitable machines Customer First, Excel through Innovation and Teamwork
plus life cycle service support. GCSL is a JV between a are the operational Values of GCSL. The high performance
Team company (Partner A), with 70% shareholding and work culture revolves around innovatively meeting customer
Premier Construction Solutions Ltd of Japan (PCSL, needs and expectations in a co-ordinated and integrated
Partner B), a global player, holds the balance 30%. Partner manner with multi-functional support and the active
A first entered into a technical collaboration with PCSL in late participation of our suppliers and channel partners.
80s and then formed the JV in 1999 for development and The market leadership position is continuously reviewed and
manufacturing state-of-art machines. GCSL has access to strengthened through appropriate leveraging of our core
the latest technological advancements introduced by PCSL. competencies (CCs) which are fully aligned with our Mission,
In 2008 as shown in Fig. P-03. The senior leaders decision making
GCSL acquired two equipment manufacturers, one in Europe process backed up by the Balanced Scorecard (BSC) based
and one in USA to widen the product offerings in India and strategy execution and performance reviews (Fig. 4.1-06)
SAARC/ Asia-Pacific region. With aggressive strategies, ensures that stakeholder requirements are not compromised.
GCSL aims to consolidate and grow rapidly, inspite of the
world wide uncertainty due to economic slow down. Fig.P-02- Business Excellence Directions
P.1.a-Organizational Environment: OUR VISION
P.1.a1- GCSL is in the business of designing, manufacturing, GLOBAL TOP 5 WITH TURN OVER US$ 2 Billion BY 2015
marketing, selling and servicing a wide range of machinery MISSION
and equipment as shown in Fig. P-01:- Provide Full Line of material handling & construction machinery
Fig. P-01-Products & Services offered by GCSL & Revenue Split for MICA Sectors.
Technology
% Split of Revenue Be a Trusted Partner for Cost-Effective & Innovative Offerings
Product Groups / Service Partner/ Source India Sales ----- and Timely Life Cycle Support to all Customers.
Exports
Earth Handling Excavators PCSL 35% 1% Leverage Superior Technologies and Responsive Supply Chain
(EH) Develop Competent & Motivated Work Force Globally
Back Hoe Loader (BL) Partner JD 9% 2%
Wheel Loader (WL) Own 9% 2% Establish Harmony with Environment and Society.
Cranes (CR) Own + PCSL 12% VALUES OUR GUIDING PRINCIPLES
Special purpose EH 1. Customer First
PCSL 7% -
Machines from Japan 2. Excel through Innovation
Bulk Cement Handlers (BC) GCSL. USA 2% - 3. Integrity
Concrete Mixers (CM) GCSL. Europe 3% - 4. Team Work
Spares & Service Own 17% 1% 5. Respect Individuality, Leverage Diversity
Total Sales 94% 6% 6. Responsible Citizenship
Graders, Dumpers & Own & PCSL B *New Products under
Multi-utility Machines testing

All machines are offered on the tonnage/ bulk volume Fig. P-03
handling capacities as per specific needs and site conditions GCSL CORE COMPETENCIES & MISSION FOCUS
and hence the focus on customization. Machine EH is a Core Competency Mission Focus
digging & dumping machine with attachments for digging, 1. Technology Full Line of material handling and
leveling, loading, pipe laying, rock breaking, etc. Machine BL Integrator construction machinery
is tyre mounted & used for infrastructure projects whereas Superior Technologies
Machine WL is used in heavy duty mining & material handling 2. Customer Cost-Effective & Innovative Offerings
jobs. GCSL also deals with the sales & service of agency Engagement and Trusted Partner
Market Knowledge Timely Life Cycle Support to all
products, like very large machines made by PCSL, cement Customers
handling equipment and road making machines made by its 3. Responsive Team Competent & Motivated Work Force
subsidiaries. Work Responsive Supply Chain
79% of the Indian sales are through the 50 dealers appointed
by GCSL in India (Fig. 7.5.09). The machines are delivered to
the customers site by road and are commissioned by the P.1.a3- GCSL has a committed and highly diverse workforce
engineers of GCSL or dealers. The periodic / on call services totaling 2080. The workforce profile along with employee
are offered at customer site. Further, GCSL offers service groups and segments as illustrated in Fig.P-04 shows that
contracts (AMC, FMC, ASC and customized life cycle service) the average age of the workforce is 38.5 years and comprises
as part of its aim to provide prompt and efficient support 29% graduate engineers and other professionals. The critical
directly or through the dealers. engineering and developmental activities are guided by
P.1.a2- GCSL revisits the business excellence directions, qualified PhDs and Masters Degree holders in their
reflected in the Vision, Mission and Values, during the respective fields of specialization. The company also uses

6
contract employees under supervision of a contractor for GCSL has a full-fledged Design & Development set-up for
some non-production related work, like conservancy, developing indigenous and collaborator's machines. It has
horticulture, floor sweeping, etc. high-end CAD/PDM infrastructure and sophisticated software
The key factors that motivate the workforce to engage into packages such as Unigraphics, I-Deas, Pro/Engineer and
improvement drive to sustained high performance (Fig. Teamcentre. For management of IT system, GCSL uses SAP
7.4.15) are:- i) the GCSL Brand Image, ii) encouragement for ECC 6.0 ERP package (upgraded from SAP 4.6 in Feb.08)
personal development, iii) talent utilization for challenging and Team center PDM package, which integrates
work environment, iv) performance management and v) Manufacturing, Marketing, Finance, QA, Design, HR and
positive relationship with GCSL Workers Union (WU). Servicing at all locations. For communication with workforce
and dealers GCSL uses Lotus Notes 6.5 at all its locations.
The workforce and job diversities, as shown in Fig.P-04, are
integral elements of the Indian work culture and in case of P.1.a5- GCSL proactively aims to meet and surpass
GCSL it is reflected in our Value Respect Individuality,
Leverage Diversity. Management has evolved a dialogue- regulations and statutory requirements, briefly outlined in Fig.
P-05. GCSL also surpasses the emission norms by providing
based cordial and co-operative working relationship with the
recent versions of fuel efficient compliant engines in its
bargaining unit i.e. the GCSL Workers Union (WU). The WU
leadership supports workforce involvement in improvement equipment. GCSL has also become one of the first ten Indian
initiatives as well as the performance recognition (R&R) companies to become SOX (Sarbanes Oxley) compliant.
activities. This approach has resulted in no loss of man-days Fig. P-05- Regulations & Certifications
on account of industrial unrest since inception. Workforce Area Regulations, Certifications
benefits (described in Figs. 5.2-08 & 5.2-09) play a major role Workforce Labour Laws, Air & Pollution Act, OHSAS18001
in this scenario. etc.
GCSL focuses on creating a culture of safe & healthy work Environment ISO14001, GRI, CSR
environment to ensure that the workforce follows the Financial Company Law, SOX, Income Tax, Excise,
prescribed safety practices and that the accidents are Customs, Sales Tax
Corporate Governance CSR Report, Triple Bottom Line
prevented. Detailed process and initiatives for improving
Product Regulations CMVR guidelines, DGMS Circulars
health & safety based on the framework of QSHE (TPM, ISO Quality System ISO9001, ISO 14001, OHSAS18001
& OHSAS18001) are given in section 5.2b and Figs. 5.2-06
and 5.2-07) P.1.b -Organizational Relationships
Fig.P-04- Workforce Profile- Segments & Diversity P.1.b1:- GCSLs organization chart (Annexure I) shows the
Education Level functional structure which has evolved based on GCSLs
Function-Wise Nos. % Profile Nos. % business processes. The chart also shows that senior
Manufacturing 1093 53% PG (Tech.) 125 6% leaders are involved in adopting and actively supporting
Supply Chain Mgmt 133 6% Graduate Engg. 416 20% TBEM.
SSPC 347 17% MBA, CA, ICWA 62 3% P.1.b2:- GCSL operates in four key market segments: -
Sales & Mktg 172 8% Diploma/FTA/ITI 1040 50% Mining, Infrastructure, Construction & Agriculture (MICA). The
Design 104 5% High School 250 12% customer groups are based on their specific operational
Quality Assurance 75 4% Secondary School 187 9% needs, reflected in their procurement of appropriate machines
Finance 48 2% Age Profile with suitable attachments. Hence customer groups are
Planning 43 2% Upto 30 yrs 936 45% product based: - (1) EH, (2) BL & WL, (3) CR and (4) Other
Human Resource 14 1% 31-40 458 22% Products. The key requirements of these groups are similar in
Admin. & Others 51 2% 41-50 312 15% characteristics as given in Fig.P-06 (but different in levels). In
Location-Wise 51-60 374 18% addition, the machine-specific requirements include cost per
Yantrapur 1229 59% Level-Wise ton of material handled, machine availability, productivity,
Mumbai & Others 768 37% Management 624 30% rental charges, timely delivery, resale value etc.
Outside India 83 4% Non-Manage ment 1456 70% Fig P-06- Common Customer Requirement
Average Age =38.5 yrs. 1. Reliability
a) Commissioning- Number. of Defects
P.1.a4: GCSL has its Head Quarter at Mumbai and the b) Number. of Defects upto 2000 hrs Operation
manufacturing facilities with Spares & Service Profit Centre 2. Maintainability
(SSPC) and Central Warehouse are located at a 100 hectare a) % Spares Part Availability
plot at Yantrapur near Pune in Maharashtra. The marketing b) MTTR
and service network comprises four Regional Offices at c) Service Coverage
Kolkata, Delhi, and Chennai & Mumbai, 36 Branch Offices & 3. Cost Elements
50 Dealers duly supported by warehouses for storage & a) Owning cost (US$ 000)
delivery of spares. b) Operating cost ( i) Fuel consumption(Ltrs/Hr of operation)
The Yantrapur Plant 1 was set up in 1999 to produce all high
(ii) Consumable cost (US$./Hr)
volume models and accounts for 70% of the turnover. This is
the mother plant with facilities for steel fabrication, heat
treatment, machining, aggregate assembly and testing of
machines. The Plant 2 has a conveyor-line for assembly of
machines and a state-of-the-art painting complex. It produces
large class customized products primarily made-to-order and
accounts for balance 30% of the turnover. Plant 3 is being
commissioned soon for which the manpower is already
recruited and trained to ensure speedy start-up. In addition,
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Requirement of other stakeholders are shown in Fig.0P-07. 3. Dealers: Dealers are the partners for sales and service of
machines, extending the reach of GCSL to remote areas and
Fig. P-07- Stakeholder Requirements establishing long-term relationships with the customers. The
Partner Stakeholder Requirements key requirements are requisite financial & technical strength,
Dealer/ Frequent communication and interaction, Training on ability to attract & retain technicians, understanding of the
Channel Products & Services, Business growth, Financial support, local market, relationship with key customers and ability to
Partners Rewards & Recognitions.
deliver timely quality service. Dealer partnership has evolved
Suppliers Clear Delivery requirements, On-time payment, Frequent
communication and interaction, Business growth, in last few years due to providing finance, training for their
Profitability, staff, conducting Dealer Meets and visits by ABEC members
Collaborators Technology absorption, Market Position, Royalty etc. The dealers commitment to our Value Customer First is
payment, Orders for key aggregates, assessed through feedback from the customers and is shared
JV Partners Brand building, Market position, SOX compliance, with them. The partnership & communication mechanisms are
Sustaining profitability and sales growth
Society Training for sustainability & employability, Help in
summarized in Fig.P-09.
Education, Health, Water, alternative energy sources, Fig. P.09- Supplier/ Partnering Relationships- Illustrative
Initiatives for Climate change & green environment etc. Relationship Activities Communication Mechanisms
Key Suppliers
Parts/aggregate development, PIP, Sourcing Team visit; Partners
P.1.b3- Supplier /Partner/ Dealers Relationships-
Capacity build-up, Quality meets, Engagement with seniors;
1. Suppliers: Suppliers play a key role in the value creation Assurance, Support Green Sharing Production Plan, etc.
process of GCSL with cost of materials and components Movement. Quality and Climate Audits
accounting for about 50% of turnover. The major categories Customers
Key Account Mgmt, AMC / ABEC Mentoring, Customer meets;
of suppliers are shown in Fig. P-08.
FMC / ASC, Equipment GCSL website, e-mails
Fig. P-08- Major Supplier Categories Financing; Sales and service Wide Sales and Service network
% Purchase contact, Product updates & through Dealers
Category Major Suppliers
Bill training program,
Steel SAIL,TEAM Steel & SSAB 3
Dealers
Castings and Mayura, Datre Corp, HUL 4
Equipment sales & service; CRM initiative, On-line connectivity,
Forgings India Forgings, U.S.K.
Stocking of spare parts, Web site, Dealer Meets, Sr.
Imports HCM, ,ZF, ITM, Dongyang 33 Training, Management visits, Dealer Conference,
Proprietary GCSL Kutumb
Indigenous TML, Cummins, Wipro, 25
Proprietary Hydrolines, Enginemates
P.2 Organisational Challenges
Components IAL, Apex Auto, JMT, MMI 35
(GCSL design)
P.2.a. Competitive Environment
P.2.a1- Competitive Position: The economic boom in India
GCSL conducts a periodic check through quality systems the last few years pre-2008 has resulted in all-round growth
audits and gives feedback on how to minimise deviations, rate of above 40%+ in the CE industry and attracted many
rework and rejections. The suppliers are urged to adopt global players. The equipment market size, after contraction
similar performance measures as adopted by GCSL, i.e. due to economic downturn in 2008 is about US$ 1850 million.
Productivity, Quality, Cost, Delivery, Safety & Morale The competitive intensity in the CE industry has gone up from
(PQCDSM). The key suppliers participate regularly in quality 3 players in 1970s to 13+ players at present, out of which 6
key players dominate the Indian market. GCSL is the market
and work process improvement drives and CRISP initiatives leader with equipment sales turnover of about US$ 625 mn
based on design and concept change etc. These are the main (overall market share of 34%). It is competing against the six
drivers for innovation. GCSL has also integrated 4 of its global brands, three of whom have local JVs and the balance
suppliers through setting up PIP (Plant in Plant) in Plant 2 by sell completely finished imported machines in India. None of
providing technical, financial and managerial support for the competitors, however, have the wide range of products,
setting up these PIPs. production facilities and country wide service network that
GCSL offers to its customers. The market shares for the
product groups are shown in Fig.P-10. In addition, the sale of
2. JV Partners- GCSL is committed to enhance its leadership spare in the market accounts for about $ 400 mn, of which
position with support from its JV partners by strategically GCSL accounts for $ 125 mn.
sourcing the aggregates & technology. They drive innovation
through participation in workshops for SWOT, Strategy Fig. P-10- Estimated Market Size, Shares & Growth Rates
planning, JDTs for critical projects, Quality and work process Product Groups EH BL WL CR Others
improvement drives, sharing of information on sources and Market Size $ mn 625 300 320 200 400
technologies, etc. With the help of PCSL, GCSL has set up a GCSL Share % (08-09) 53 24 23 50 10

R&D Team and a Global Sourcing Cell to focus on Main Competitor & Comp-1 Comp-2 Comp-3 Comp-4 Comp1-
Share % 32 39 58 20 5
development of alternate sources for components and parts. Pre-2008 Growth Rate %
45 24 35 30 20
- Market
The lead times for the imported supplies and quality, cost
and delivery for the indigenous supplies are the most
important supply chain requirements.

8
P.2.a2:- Principal Factors that determine success:
GCSLs marketplace leadership is attributable to the factors
summarized in Fig.P-11.
Fig.P-11- GCSLs Principal Success Factors
PSF Indicators for PSFs
Customer Sustained Leadership, Service Quality,
Engagement Repurchase results, Positive Referrals
Customized Products Number of new products and attachments,
& Services New Products introduced/ in pipeline
Superior Product Technology partners vis--vis competitors,
Features Defects in first 2000 hrs Operation
Lifecycle performance Ownership Cost, Consumables Cost, Fuel
-Value for money Economy, Resale Value
Strong Partnerships Supply Chain management- PIP, Support
from PCSL and Acquisitions, NPIs &
International business performance
Lifecycle Support & Number of contact points/ outlets per 1000
Distribution Network machines, Spares availability, MTTR
Key Changes that affect Competitive Situation:
Indian CE market is expected to remain stagnant during
2009-10 and projected growth rate for the next 4 to 5 years is
only 15% to 20%. GCSL plans to ensure and retain the
leadership position through value adding offerings and reach
the turnover of US$ 1400 million by 2014-15. In addition, the
international business including acquisitions will account for
US$ 600 million (as against US$ 50 million at present) by the
same time horizon. As the sever competition from global
players is putting tremendous pressure on cost management
& timely availability of spares, following changes are
emerging:-
Changing Customer expectations:- customers now want
to extend the economically viable life of existing
machines rather than acquire new machines
The global players that have not set up shops in India,
find it difficult to be cost-competitive due to change in
Re/US$ parity (from Rs.38/$ to Rs. 48/$).
Industry consolidation through mergers & acquisitions
Influx of cheap second hand machines.
GCSL views these changes as opportunities for innovative
changes in its strategy to assure short term consolidation and
long term profitable growth in domestic and foreign markets
through leveraging indigenous manufacturing and the value
adding features supported by our CCs in the following
directions:-
Extending market intelligence to track new investments in
CE industry in the nearby markets i.e. SAARC countries
and Asia-Pacific region.
Re-engineer the product features to incorporate new
technological advancements in engines, hydraulics,
transmission, safety & maintenance
Integrate Deming practices with initiatives like CRISP,
TPM, TOC & excel in cost-quality-service offerings
Global supply collaborations for cost-competitive &
technologically superior components and spares
Strengthen GCSL Brand to leverage customer loyalty
Promote Green GCSL movement across GCSL
operations and supply chain.
P.2.a3:-Sources of data from within the Industry:
GCSL collects relevant market and competitive intelligence
data and information from various sources such as:-
Field visit reports by the Sales, Service, QA and Design
staff during field visit followed by use of FIBRES
process
Market developments tracked through customer meets &
dialogues with customers having competitors machines.
Industry Magazines and competitors publications
including web-site data
Visit to National & International Equipments exhibitions
Regular reviews with PCSL and JVs.
Inputs from suppliers and vendors of Proprietary items.
Sources of data from outside the Industry:
Knowledge sharing thorough interactions, visits to
plants, training by experts from companies within the
Team Group
Information gathered from Government publications,
business magazines, newspapers, internet.
Databases of CMIE (Centre for Monitoring of Indian
Economy) and Team Benchmarking Centre.
Limitations- Many of the competitors are unlisted privately
held companies or SBUs / Divisions of larger business groups
hence appropriate performance and financial data on like-to-
like basis is not available in public domain.
P.2.b:- Strategic Challenges and Advantages:
The strategic challenges pertaining to critical business /
operational / HR issues along with the required strategic
focus and strategic advantages of GCSL are shown in Fig.P-
12 and the issues critical for sustainability are highlighted.
P.2.C:- Performance Improvement System
GCSL has implemented three approaches for performance
improvements with focus on learning, sharing and innovation.
1. Business process improvements based on feedback from
TBEM internal and external assessments. The BELS review
of the feedback reports results in prioritizing the process
improvement initiatives. This has enabled GCSL to evolve the
business model to strengthen the domestic leadership first
and now to strategically achieve global top 5 position.
2. Focus on enhancing the efficiencies and effectiveness of
the business and work process improvements, the key
elements of which are: - i) the systematic and wide spread
adoption of PLAN-DO-CHECK-ACT approach (PDCA Cycle
Fig. P-13) and ii) rigorous implementation of the QSHE
(quality systems/ standards ISO9001, ISO 14001 & OHSAS
18001). These initiatives help create and implement
systematic and repeatable work processes to ensure
consistent high performance in all work areas.
3. Aim for breakthrough improvements, the implementation
of which is duly supported through GCSL specific initiatives
which are: - CRISP, TOC, JDTs and TPM and SOX etc.
These are project oriented initiatives and senior leadership
ensures to fully integrate them across the key business and
work processes. In order to become prepared for the new
challenges of accelerated growth, GCSL has now embarked
on strategic adoption of well proven Deming principles and
practices.
9
 Evaluation, learning & sharing within the organization:
GCSL senior leadership ensures to first evaluate the
gains from the improvement initiatives through cost-
benefit analysis and then share them across the
organisation through various communication channels.
The evaluation, learning and sharing practices include:-
Periodic reviews by ABEC, FCS & DCs (Figs. 4.1-01
and 4.1-06): TBEM assessment feedback; Strategy
execution; Management Reviews of QSHE Systems,
improvement projects like CRISP, TOC & TPM etc.
Quality Concerns meetings, Complaints and Service
Feedback Meetings, Sales & Service Bulletin.
Use of KM System, Benchmarking process &
Benchmarking Hierarchy
In-house Magazine: GCSL Sambandh & Mountain
Movers. GCSL Kutumbh for Dealers.
The key learnings are stored in KM System for future
reference and used during the next cycle of respective
reviews.

Fig. P-12 Key Strategic Challenges & Advantages

Business/ Operational/HR
Challenges
B1. Economy Downturn
resulting in shrinking demand
in all market segments
B2. Ever changing customer
expectations
O1. Capacity constraint after
economic recovery starts
Strategic Focus
1. Formulating new investment projects/ acquisitions for new
markets and market segments.
2. Setting up sales and service network outside India
.(sustainability)
3. Risk mitigation in case the economic recovery is delayed
1. Enhanced reliability at lower costs. (sustainability)
2. Extending Product life
3. Timely availability of components and service parts
1.Must ensure profitability and surplus cash generation
inspite of the downturn (sustainability)
2 Scouting for synergistic mergers and acquisitions
Strategic Advantages
1. Strong focus on market intelligence with FIBRES
for Product-market strategy reviews
.(sustainability)
2. Partners support for new products and extended
sales network. (Sustainability),
3. SOX processes in place.
1. Customer engagement processes in place
.(sustainability)
2. Cost-effective Lifecycle service support
3. Global supply chain in place (sustainability)
1. Cost reduction program, CRISP, in place
.(sustainability)
2. Plant 3 to be on stream in 2009-10
3. GCSL has been exposed to mergers/ acquisitions

O2. Enhancing differentiation
on Cost-Quality-Service
offerings.
O3. Societal Concerns on
climate changes and disasters
H1. Job Availability & talent
retention
H2. Extending high
performance work culture to all
acquired units
1. Innovative breakthroughs required on our Cost-Quality-
Service package
1. Taking lead in green revolution and disaster
management .(sustainability)
2. Suppliers active support required for the same.
1. Workforce development in acquired units needs to be
aligned with .GCSL practices at the earliest
(sustainability)
1. Adopting GCSL work processes across a highly
diversified workforce globally. .(sustainability)
1. Technology support from PCSL and other
partners (sustainability)
2. Integrated approach to NPI
1. Partners and suppliers are keen to support GCSL in
promoting Green GCSL.
1. Workforce development processes well
entrenched in Indian operations. .(sustainability)
1. Support available from large Team companies
that have accomplished such tasks. .(sustainability)

Fig. P-13: Process for Adoption of P-D-C-A Cycle .

10
C1- Competitor 1, C2- Competitor 2
BM Benchmark