‘Automation-led volume growth leading to higher job creation’

INTERVIEW WITH EXECUTIVE DIRECTOR (PRODUCTION), MSIL

MARUTI SUZUKI has started using robots along with engineers and skilled workers in their production line for the new Dzire, bookings for which opened Friday. During a visit to the Manesar plant, RAJIV GANDHI, executive director (production), MSIL told SANDEEP SINGH that while automation has been on a rise and around 2,400 robots work at its Manesar and Gurgaon facilities, it has not resulted in job losses. He also spoke on the deterioration in the quality of engineers passing out of colleges. Edited excerpts:

The global debate about the rise of automation is growing. While MSIL has enhanced the use of robotics, how do you see the impact?

I would say that on the contrary, it has led to more job creation at MSIL. Upfront it is difficult to understand that automation can lead to increase in manpower but actually it happens. While we have increased automation in a big way, the manpower has increased multiple times. With automation you increase productivity, lower the cost and improve quality and these in turn result in higher volumes. I think automation helps you to compete in the market place and if you are able to compete well, you are able to get more volumes and add more manpower. Also with more and more features coming into the cars, the manpower per car increases. If we were to keep the features within the car same as they were 10 years ago then yes the manpower per car would have reduced.

A few years back, NR Narayana Murthy raised concern over the quality of engineers from premier institutes. You too hire engineers, what is your stance on this?

I agree with him. We go for campus recruitment of engineers from top 30-40 institutes in the country and it is sad that there has been a deterioration in the quality of basic engineering skills among students. Many a times they don’t have the basic skill to read a drawing and can’t even explain some basic concepts. Maybe the numbers are too many and they are not being able to manage those numbers but I really don’t understand the problem. It needs to be looked at very deeply.

What about workmen level?

We have adopted some of the ITIS under public private partnership model and we handhold them, guide them on curriculum and skill level. We also provide modern equipments. We have donated latest technology engines required for training to upgrade their skills and to keep them abreast with the latest technology. In fact, in these ITIS we have specialised people to train the teachers on how to teach. It all ultimately benefits us indirectly as we hire from these institutes.

MSIL has increased the use of high tensile steel (HTS) in Dzire from 20 per cent to 36 per cent. What is the right mix and is it likely to go up?

With 36 per cent HTS we are able to meet all the crash regulations and now our safety norms are comparable to others. But going forward if the norms change then the crash resistance has to be checked at higher speeds and more engineering will go into it. That is bound to happen. While it is expensive in one sense, it gives benefit of weight reduction. The use of HTS is increasing and even their strength levels are increasing and the trend continues.

MSIL has 16 models coming out of its Manesar and Gurgaon plants. How many more models can these plants bring out within the overall production limit?

We can take 4-5 more models within the production capacity of the plant. One new weld line can take three models and we have flexibility available with us in that sense.

What are the biggest challenges you faced during the evolution of production at Maruti over last 3 decades?

Over the years more and more technology has been coming in and the biggest challenge has been to get the skilled manpower to handle those technologies. So definitely, developing the skill of our people, engineers to incorporate this technology, use it and maintain it was one of the biggest challenges.