रजिस्ट्री सं ० डी ० 22 1
REGISTERED No. D. 221
भारत का राजपत्र The Gazette of India
असाधारण
EXTRAORDINARY
भाग -अण्ड 1
PART I- Section I
PUBLISHED BY AUTHORITY
सं 28] नई दिल्ली, सोनबार, फवरी 1' 1968/ साथ 23, 1889
No. 28] NEW DELHI , MONDAY , FEBRUARY 12 , 1968 / MAGHA 23 , 1889
इस भाग में भित्रपृष्ठ संख्या थी जाती है जिससे कि यह अलग संकलन के रूप में रखा जा सके । Separate paging is given to this Part in order that it may be filed as a separate compilation .
MINISTRY OF INDUSTRIAL DEVELOPMENT AND COMPANYFAIRS
(Department of Industrial Development )
RESOLUTION
New Delhi , the 12th February 1968
No. 1 ( 95 ) /67-A.E.Ind . ( I ) .-- In view of the widcspread complaints about the quality of motor cars manufactured in India , the Government had , in exercise of the powers conferred by Section 15 of the Industries ( Development and Regula- tion) Act , 1951 , appointed . in their Resolution dated the 11th July , 1967, a Com- mittee under the Chairmanship of Shri G. l'ande to investigate and make recommendations in regard to the following :-
(a) The extent of deterioration in the quality of motor cars , the circum- stances and reasons therefor ,
(b) Whether minimum standards of quality and performance have been laid down and ensured by the car makers for the raw materials , compo- nents , and sub - assemblies , bought out or manufactured by them , and for the assembled cars .
(c) Whether the equipment , facilities , and arrangements with them are ade- quate and effectively used for proper testing and inspection , and what are the additional requirementsequirements ininin respect of the same to ensure better inspection and quality control,
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(d) The part played by the indigenous , ancillary and other industries in this deterioration and the steps to be taken for effecting improvements therein ,
(e) The nature of effectiveness of the warranties and the adequacy and promptness of the aftersales service rendered by the dealers and other concerned , and, finally ,
(f ) The necessary and feasible steps to be taken by the Central Govern- ment in regard to these matters .
2. The Committee submitted its report on 1st December , 1967. It is a very comprehensive study of the working of the industry relating to the manufacture of motor cars and its ancillary industries and has drawn attention to the reasons for the deterioration in the quality of cars manufactured in the country , the inade- quacies in the quality control procedures of car and ancillary producers , the lack of proper organisation, inadequacies of technical know- how , equipment and testing facilities and difficulties in obtaining the right type and quantities of raw materials cte . The Committce has also made recommendations for the rectification of various defects and improvement of the quality of motor cars produced in the country .
A summary of the various recommendations and Government's decisions there- on is given in the Annexure .
3. The implementation of the recommendations would require concerted and detailed action by the industry , Government and dealers over a period of time . In order to ensure that the necessary improvements are cffected speedily , Govern- ment intend to arrange for periodical review of the steps taken to implement the recommendations .
4. Government wish to place on record their high appreciation of the thorough- ness with which the Committee has studied the various problems and made practical and constructive recommendations .
ANNEXURE
Government's decision Recommendation of Committee
S. No.
Concerning Car Makers
Accepted.
The industry will be asked to have discussions among themselves and put forward a common programme for implementing the recommendations with a definite time schedule .
I The management should become fully quality conscious and instill this consciousness at all levels of their staff and workers , through periodical lectures , demonstra- tions , circulation of pamphlets , awards , and incentives .
2 The managerial staff should be given training in one of the organized institutes on modern management techniques .
3 Training courses in inspection and quality control techniques for the staff posted in these departments should be organised along with periodical refresher courses .
4 A separate Inspection Department manned by well qualified personnel should be established in each plant and should be directly responsible to the top manage- ment.
5 There should be a separate quality control Department manned by proper qualified personnel .
6 Every plant should have a Company Stand- ards Department to liaise with the Indian Standards Institution and also to lay down required company standards .
7 Proper inspection and statistical sampling procedures and statistical quality control methods should be evolved for adoption in the three plants .
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Government's decision Recommendation of Committee
Serial No.
}
8 Statistical control methods should be em- ployed from the inspection of the incoming raw materials and components , through the assembly lines and right up to the finished products .
9 Indian Standards for raw materials , com- pouents , statistical quality control methods and test procedures should be followed wherever they exist . Raw materials and co-nvonents carrying the ISI Certification Mark should be purchased wherever they are available .
Accepted . The industry will be directed to obtain specifications , standards and test proce.lures established for this purpose from the Indian Standards Institution and to purchase materials covered by the ISI Certification Mark .
10 Every plant should have adequate testing ) facilities for raw materials and components .
Accepted . to The car makers will be directed approach Government for any assis- tance needed for import of equip- ment etc. and to indicate the test rigs already with them and what additions they propose to make , either indivi- dually or jointly , within a period of six months .
11 Test rigs for testing of performance require- ments of components and for evaluating the life of the bought - out components should be installed . Samples of bought- out components should also be continu- ously tested on test cars and test tracks . Adequate number of test cars . should be carmarked for this purpose .
Accepted.
The manufacturers will be directed to implement the recommendations and confirm compliance .
The layout of some of the departments of the car makers should be revised whenever an opportunity arises to enable smooth flow of materials and components and to avoid duplicate handling . 12
13 A Research and Development Section should be established at each of the plart for re- designing components , developing row designs and analysir g defects with a view to taking corrective measures .
14 The spare equipment capacity available shoull be allowed to be utilized by other plants ancillary producers .
The manufacturers will be asked to consider this point , even in their own interests , to ensure maximum utilisation of the equipment .
Accerted . Manufacturers will be directed accor- dingly.
15 Detailed and specific requiremer ts of standares should be furnished to the ancillary produ- cers in addition to making available to them the testing facilities at the car maker's plant .
Accepted . The industry will be directed to discuss with the Association of ancillary Manufacturers and the Development Commissioner , Small Scale Industries evolve a uniform purchase policy within six months .
16 Proper and uniform purchase and payment policies and contractual agreements should be laid down between the car maker , the ancillary producer and their suppliers , on a long term basis . Necessary provisions for penalties and compensation for ron- compliance should be introduced in these agreements to ensure consistency .
Accepted .
17 All materials should be accepted only after proper inspection and testing, and not on the basis of previous supplies or brand names .
The industry will be directed rected to lay down a detailed code of inspection and testing in consultation with the suppliers . The code should strictly adhered to thereafter . be 120
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Government's decision Recommendation of Committee
Serial No.
Accepted .
18 A thorough pre -delivery inspection of all cars should be made by the car maker before delivery to the dealer .
The manufacturers and dealers will be asked to lay down a full pre - delivery inspection procedure and report com- pliance . A case history of the car should be maintained .
Accepted .
Minifacturers will also be directed to specify the accessories and tools to be supplied with each car .
19 No car with deficient supplies of parts should be sold to the dealer. Cars should have the stipulated service tools of quality . proper
Accepted .
The industry will be advised accordingly .
20 Tamper proof speed governors should be fitted to the cars to minimise reckless driving of the cars from the car maker's plant to the dealer's establishment .
21 Proper procedures for preventive main- tenance and timely repatr of machinery and equipment should be laid down .
Accepted.
The manufacturers will be requested to discuss among themselves and their respective dealers and evolve a uniform practice of reporting performance data , 22 A proper system of collection of field data with regard to the performance of passenger cars should be evolved so that information regarding complaints , defects and failures is fed back to the car maker with a view to analysing their causes and also for taking corrective measures .
Accepted .
The manufacturers will be directed to comply with the recommendation .
23 The warranty with which cars are sold should be uniformly valid for a period of 12 months or a distance covered of 16,000 Kms . which- ever occurs earlier . Also , all defects due to faulty manufacture or bad workmanship should be rectified and defective parts replaced during this period without passing any part of the burden , including incidental charges , to the customer .
Accepted .
24 Car makers should evolve a proper procedure for disposal of rejected material and parts so as to ensure that they do not find their way back to their plants .
The manufacturers will be asked to evolve a proper procedure within 6 months and inform Government of the steps taken .
Accepted .
The manufacturers will be asked to take immediate steps in consultation with ancillary manufacturers .
25 The car makers , together with the ancillary producers , should try and develop as many interchangeable components as possible for the three cars in order to increase produc- tivity , reduce cost and improve quality .
Accepted .
The manufacturers will be directed to take immediate action and report compliance.
26 The dealer's workshops should be visited periodically by the car maker to ensure that the spare parts that go into the original equipment are being stocked , for use during the warranty period .
Accepted.
The industry will be directed to comply strictly with this recommendation .
27 When defects in critical components are reported from the field, the owners of all cars from that batch should be notified so that the cars are brought immediately to the nearest dealer's service station for check and rectification of defects .
Accepted .
The manufacturers will be advised accordingly .
28 The car makers may be induced to give up the production of certain components which they are currently manufacturing , which could more profitably be manufactured by the ancillary producers .
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Government's decision S. No.
Recommendation of Committee
Concerning Ancillary Industries
I The Management should become fully , quality conscious and instill this consciousness at all levels of their staff and workers , through periodical lectures , demonstrations , circula- tion of pamphlets , awards and incentives .
2 The managerial staff should be given train- ing in one of the organised institutes on- modern management techniques .
3 Training courses in inspection and quality control techniques for the staff posted in these Departments should be organised along with periodical refresher courses .
Accepted.
4 A separseparate Inspection Department amanned by well qualified personnel should be estab- lished in each unit and should be directly responsible to the top management .
5 There should be a separate quality control department manned by proper qualified personnel.
The All India Automobile and Ancillary Industries Association will be re- quested to evolve a uniform practice after discussions among the indivi- dual ancillary units and formulate a plan of action within six months .
6 Each unit should have a company standards department to liaise with the Indian Standards Institution and also to lay down required company standards .
7 Proper inspection and statistical sampling procedures and statistical quality control methods should be evolved for adoption in each unit .
8 Statistical quality control methods should be employed from the inspection of the in- coming raw materialsmaterials and sub - components through the assembly lines and right upto the finished products .
Indian Standards for raw materials and sub- components , statistical quality control me- thods and test procedures should be followed wherever they exist , Raw materials and sub- components carrying the ISI Certifica- tion Mark should be purchased wherever they are available .
Accepted . The All India Automobile &Ancıllary Industries Association will be requested to take up the matter with the Indian Standards Institution for obtaining ISI standards that have been evolved either for specification or raw materials or test procedures and existing ISI marking practice already introduced .
10 Each unit should have adequate testing facili- ties for all raw materials and components . Alternatively , where possible a group of an- cillary units should establish testing facilities for use by all of them .
Accepted . The individual ancillary units will be directed to take stock of the test facilities available with them for raw materials and make out a list of additional facilities they propose to establish . This should be further discussed at the Association level so that duplication of facilities could be avoided as far as possible .
Accepted . The ancillary producers wi be directed to take action accordingly .
11 Test rigs for testing of performance require ments and evaluating the life of the compo- nents should be installed .
Accepted . The Ancillary producers will be asked to implement the recommendation and report the action taken .
12 A Research & Development Section should be established at each unit for redesigning com- ponents , developing new designs and analys- ing defects with a view to taking corrective measures .
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Government's decision Recommendation of Committee
Serial No.
13 Proper and uniform purchase and payment poilcies and contractual agreements should be laid down between the ancillary industry and their supplies .
Accepted . The manufacturers will be requested to consider the matter at the level of the All India Automobile & Ancillary Industries Association and evolve a uniform purchase and pay- ment policy and a standard contrac- tual agreement between the ancillary units and their suppliers . Similar policy should be applicable for the purchase from units in the small scale for which the Association should conduct discussions with the Develop- ment Commissioner , Small Scale Industries .
Accepted . The manufacturers will re directed to take acuon accordingly.
14 All material should be accepted after proper inspection and testing and not on the basis of previous supplies or brand names .
Accepted . The maruficiuices will te requested to decuss glances and evolve a unifcim practice of report- ing performance data .
15 A proper system of collection of field data with regard to the performance of their component should be evolved so that information re- garding complaints , defects , and failures are fed back to the producer with a view to ana- lysing their causes and also for taking corrective measures .
Accepted . The Arciaccess !
16 The ancillary producers , together with the carmakers , should try and develop as many interchangeable components as possible for the three cars in order to increase producti- vity , reduce cost and improve quality .
be directed to take up the natter at the Association level ic evolve a provision- al list of components that could be made interchangeable among the 3 makes of cars .
17 Proper procedures for preventive maintence and timely repair of machinery and equip- ment should be laid down .
Accepted . The ancillary producers wile be directed to take action accord- ingly .
Accepted . The Association will be addressed accordingly .
18 The All India Automobile and Ancillary Asso- ciation should devise ways and means to make its constituents observe the code of conduct evolved by it under pan of being disaffiliated under public notification if there 19 a breach of it by any producer .
Concerning Dealers
I Every dealer should have proper equipment and adequate facilities for servicing and repair of the cars as recommended by the car maker .
Accepted . Each car maker will be directed to evolve the standard procedures for their dealers and to introduce the procedure within six months .
2 A dealer should have adequate stock of such parts as are used in the original equipment and should use no others for replacement of defective parts during the warranty period .
3 The pre -delivery inspection should be thoroughly done and all defects rectified before delivering a car to the customer .
4 The dealer should make available a list of charges for standard jobs to the user .
Accepted . All the dealers will be advised through the respective car makers to comply with the recom- mendation .
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S. No. Recommendation of Committee
Government's decision
Accepted .
5 The dealer should ensure that the cars tran- sported by road do not excced the speed limits specified by the car muker to mir mise defects arising during their transportation .
Each of the car makers will be direct- cd to evolve standard procedure in these respects and to direct their dealers to introduce them within six months .
6 The dealer should be given full authority to settle complaints regarding defective parts irrespective of the agreement that the cиг maker might have obtained/ entered into with the concerned ancillary suppliers and thus ensure that complaints are attended to promptly without the customer having to wait for long period .
7 The dealer should maintain proper record of complaints received from car users and the action taken .
Concerning the Government
Accepted ,
i The Indian Standards Institution should be requested to formulate on priority basis , standards for raw materials and components with the assistance of the car makers , ancill- ary producers and their suppliers .
The Indian Standards Insti- tution will be requested to initiate action for drawing up standards according to priorities to be assign ed to various items . The represen- tatives of producers will also be associated with this work . Efforts should be made to complete the work relating to priority items with- in 12 months .
Accepted.
The industry will be directed to ad opt such standards as and when for- mulated,
The car makers should be directed to adopt and implement Indian Standards as and when these are formulated .
13 ISI Certification Marks Schemes should be made compulsory for all the ancillary pro- ducers on the basis of priorities to be estab- lished.
be The Indian Standards Institution wil e requested to prepare a list of pri- ority items in consultation with the ancillary producers and in respect of these items ISI marking scheme might be made compulsory .
4 The public sector steel plants should be directed to make available raw materials of the quali ties required by the industry , irrespective of the quantities involved .
Accepted . The Department of Iron & Steel will be requested to take appropriate steps after a list of requirements and quan- tities in cach categorytegory is drawn up by the Associations concerned .
Accepted . The Ministry of Railways will be re- quested to take appropriate steps .
5 The fabrication of special two - tier bogie wagons for transporting multiple cars by rail should be expedited.
Accepted .
6 The Government should stop assistance to the are ancillary producers whose products found consistently sub - standard and take other corrective action . They should also not be permitted renewal of their foreign collaboration , if any .
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Recommendation of Committee
Government's decision S. No.
Accepted .
The manufacturers will be directed to take action accordingly .
7 All the three car makers should be directed to sell cars under a warranty which shouid be uniformly valid for a period of 12 months or a distance covered of 16,000 kilometers , whichever occurs earlier . Also , all defects due to manufacture or workmanship should be rectified and defective parts replaced during this period without passing any part of the burden including incidental charges , to the customer .
Accepted in principle . A detailed
scheme for establishment of an orga- nisation will be prepared for further action.
8 In order to ensure that the car makers and the ancillary producers adopt the relevant re- commendations enumerated above , techni- cal audit cells should be set up in the car makers plants and also in the ancillary pro- ducers units , individually or collectively, as considered necessary, with a view to arresting the deterioration of quality anci giving trouble - free service to the customers .
Accepted .
9 Foreign exchange should be made available for purchasing such raw materials / components of the required quality as are not available at present in the country and the industry should be assisted in getting their trained in overseas countries . men
This recommendation will be examined . after all the other recommendations are implemented .
TO The Government may also consider permitting the car makers to manufacture ' de- luxe model' without price and distribution con- trol, to provide necessary incentive for tech- nological development and also for improv ing the quality of the cars which are now being manufactured .
Accepted .
II The Government should assist in the early setting up of the Co - operative Rescarch and Development Organisation for the auto- mobile industry which has already been agreed in principle . Till such time as this organisation is set up , the facilities for testing cars available with the Ministry of Defence should be utilised by the car makers .
The Indian Automobile Manufacturers Association will be asked to expedite the establishment of the research organisation and steps will be taken to ensure that definite progress is made within six months . The car makers will also be directed to urilise the testing facilitics available with the Ministry of Defence .
This recommendation will be examined in consultation with the Ministry of Finance .
12 The Government may also consider giving a rebate on the taxes to the car makers and the ancillary producers in proportion to the expenditure on inspection and quality control .
Accepted .
13 Government should consider imposing stricter driving tests before driving licences are granted.
Miscellaneous
Accepted .
I Registration for purchase of a car should be made with the regional representative of the car manufacturers and customers should stipulate the dealer through whom the car will be accepted.
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S. No.
Recommendation of Committee
Government's decision
2 Proper conditions of working , adequate ameni- Accepted .
The manufacturers will be advised accordingly.
ties , awards and incentives should be pro- vided to the workers so that quality consci- ousness could be instilled in them .
Accepted .
3 The quality of paints should be improved . Suitable rubber components should bede-
veloped to withstand severe atmospheric conditions obtaining in the country . The manufacture of plate glass should be expе- dited and till then strict inspection and con- trol methods should be adopted .
Appropriate steps will be taken to im- prove the quality of paints and rubber components and , where necessary , imports also will be allowed to the required extent . Even now plate glass for windscreens are being im- ported pending development of indi- genous industry .
ORDER
Ordered that a copy of this Resolution be communicated to all concerned and that it be published in the Gazette of India Extraordinary .
N. SUBRAHMANYAM , Spl . Secy.
PRINTED IN INDIA BY THE GENERAL MANAGER , GOVERNMENT OF INDIA PRESS , NEW DELHI AND PUBLISHED BY THE MANAGER OF PUBLICATIONS , DELHI, 1968