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Industrial Visit Report On HCL Infosystems Ltd

2009-10

1. COMPANY PROFILEName HCL Infosystems Ltd. Public BSE: 500179 BSE: 532281 August 11, 1976 Delhi metropolitan area Noida, India 1. Shiv Nadar, Founder-Chairman and Chief Strategy Officer, HCL Technologies 2. Roshni Nadar, CEO HCL Corp 3. Ajai Chowdhry - FounderChairman and CEO, HCL Infosystems , 4. Vineet Nayar - CEO, HCL Technologies Industry Revenue Employees IT Services US$ 5.0 billion (2008) 58,000 (as on 30th Sep 2008)

Type

Founded Headquarters

Key people

GCOE, Jalgaon

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Industrial Visit Report On HCL Infosystems Ltd

2009-10

2. Introduction2.1 HISTORY The HCL Enterprise is one of India's largest electronics, computing and information Technology Company. Based in Noida, near Delhi, the company comprises two publicly listed Indian companies, HCL Technologies and HCL Infosystems. HCL was founded in 1976 by Shiv Nadar, Arjun Malhotra, Subhash Arora, Ajai Chowdhry, DS Puri, & Yogesh Vaidya. HCL was focused on addressing the IT hardware market in India for the first two decades of its existence with some sporadic activity in the global market. On termination of the joint venture with HP in 1996, HCL became an enterprise which comprises HCL Technologies (to address the global IT services market) and HCL Infosystems (to address the Indian and APAC IT hardware market). HCL has since then operated as a holding company. In 1976, Shiv Nadar, quit an executive job with Delhi Cloth Mills (DCM) along with five of his friends (Arjun Malhotra, Subhash Arora, Badam Kishore Kumar, T.V Bharadwaj & Arun Kumar H) to start a new company, Microcomp Limited. The focus of the company was design and manufacturing of scientific calculators. The venture provided its founders money to start a company that focused on manufacturing computers. The company was renamed as Hindustan Computers Limited (HCL) and received support from the Uttar Pradesh government to setup their manufacturing in Noida. In 1981, NIIT was started to cater to the increasing demand in computer education. By early 2000s, Nadar divested his stake in this venture 2.2 MILESTONES 1976 - HCL (Hindustan Computers Limited) is created. 1977 - Forms distribution alliance with Toshiba for copiers and notebooks 1978 - Developed the first indigenous Microcomputer 1988 - Development of fine-grained multiprocessor Unix operating system 1986 - HCL becomes the largest IT company in India 1989 - HCL America is created with Sanmina SCI as its manufacturing partner. 1991 - Entered into a partnership with HP to form HCL HP Limited. Developed a custom Multiprocessor Unix for HP1994 - Tied up with Nokia for mobile phone distribution and Ericsson for telephone switch distribution. 1996 - Partnership with HP ends. 1997 - HCL's R&D division is spun off as HCL Technologies [4] 2001 - HCL BPO is created. GCOE, Jalgaon

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Industrial Visit Report On HCL Infosystems Ltd

2009-10

2.3 VISION A global corporation enriching lives and enabling business transformation for our customers, with leadership in chosen technologies and markets. Be the first choice for employees and partners, with commitment to sustainability. 2.4 MISSION We enable business transformation and enrichment of lives by delivering sustainable world class technology Products, Solutions & Services in our chosen markets thereby creating superior shareholder value. 2.5 QUALITY POLICY We shall deliver defect free products, services and solutions to meet the requirements of our external and internal customers the first time, every time. 2.6 HCL CORE VALUES

GCOE, Jalgaon

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Industrial Visit Report On HCL Infosystems Ltd

2009-10

3. MANUFACTURINGHCL's computer hardware manufacturing plants include 4 facilities, 2 at Pondicherry, 1 at Chennai & 1 at Uttaranchal. The plant located in Pondicherry are situated 165 kms south of Chennai on the coast of the Bay of Bengal with proximity to Chennai Air/Sea port, special policies for Industries of local Govt, , Inland Container Depots, attractive power and labour rates - makes Pondicherry an ideal place for business. Started in 1996 - with only Unit 1 - it now has 4 Units with a built up area of 4, 19,000 sq. ft the infrastructure is state of the art, one of the best & largest in India.

All 3 factories are ISO 9001:2000 and ISO 14001, ISO 13485:2003, TS 16949-2002 TUVAccredited certified. PMO was also Awarded MAIT Level 2 - by European Foundation for Quality Management in the year 2001. HCL was also awarded ELCINA's (Electronic Component Industries Association) Quality Award for the year 2002- 2003. HCL Infosystems Ltd. Pondicherry, Uttarakhand, and Noida Manufacturing Units now ISO 9001:2008 Certified State of the art IT systems in MRP, ERP, Online configurations enables this latest unit of HCL (Rudrapur) to leverage the power of IT in delivering optimum efficiency. The plant is networked & online with HCL branch and head offices. The Pondicherry plant has its own Product Engineering Group (PEG) and R&D teams constantly engaged in developing new products and solutions. Driven by a strong manufacturing objective, HCL promises to deliver defect free products, services and solutions to meet the requirements of its external and internal customers, right from the commencement of the relationship.

GCOE, Jalgaon

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Industrial Visit Report On HCL Infosystems Ltd

2009-10

3.1 Manufacturing Objective

"WE SHALL DELIVER DEFECT-FREE PRODUCTS, SERVICES AND SOLUTIONS TO MEET THE REQUIREMENTS OF OUR EXTERNAL AND INTERNAL CUSTOMERS, THE FIRST TIME, EVERY TIME." All processes in the manufacturing are aligned to this guiding objective . A strong emphasis of "Quality by Process" is ensured across all processes. The products manufactured here undergo stringent tests that ensures their ruggedness & durability , which may be deployed anywhere in India and may have to face severe conditions like - heat , humidity , rough transportation & handling .Our products undergo drop tests , hot & cold temperature chamber , client-site simulation tests , reliability tests etc. Computers are shipped to locations all over India with an extensive network of professional logistic support partners. There is also a Customer satisfaction cell, in plant, to take care of problems reported from field. Customers, sales & marketing, support personnel, dealers & distributors are encouraged to visit the plant to see, for themselves, what all goes in making a quality computer system.

3.2 Philosophy Of Quality

"We shall deliver defect-free products, services and solutions to meet the requirements of our external and internal customers, the first time, every time."

To exist as a market leader in a globally competitive marketplace, organizations need to adopt and implement a continuous improvement-based quality policy.One of the key elements to HCL's success is its never-ending pursuit of superior quality in all its endeavors. HCL INFOSYSTEMS believes in the Total Quality Management philosophy as a means for continuous improvement, total employee participation in quality improvement and customer satisfaction. Its concept of quality addresses people, processes and products. Over the last 32 years, we have adapted to newer and better Quality standards that helped us effectively tie Quality with Business Goals, leading to customer and employee satisfaction.

GCOE, Jalgaon

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Industrial Visit Report On HCL Infosystems Ltd

2009-10

4. QUALITY AT HCL INFOSYSTEMS LTD

The history of structured quality implementation in HCL Infosystems began in the late 1980s with the focus on improving quality of its products by using basis QC tools and Failure Reporting and Corrective Active Systems (FRACAS). We also employed concurrent engineering practices including design reviews, and rigorous reliability tests to uncover latent design defects. In the early 90s, the focus was not merely on the quality of products but also the process quality systems. Our manufacturing unit at NOIDA was certified initially to ISO 9002:1994 by Bureau Veritas Certification in 1994 and later on to ISO 9001:1994 in 1997. As of now, all our manufacturing units are certified by Bureau Veritas Certification as per ISO 9001:2000 and ISO 14001: 2004 In early 1995, a major quality initiative was launched across the company based on Philip B. Crosby's methodology of QIPM (Quality Improvement Process Management). This model was selected to because it considered the need and commitment by an organization to improve but more importantly, the individual's need towards better quality in his personal life. Under our Quality Education System program, we train our employees on the basic concepts and tools of quality. A number of improvement projects have been undertaken by our employees, whereby process deficiencies and bottlenecks are identified, and Corrective Action Projects (CAPs) are undertaken. This reduces defect rates and improves cycle times in various processes, including personal quality. We have received MAIT's 'Level II recognition for Business Excellence' for our initiatives in the Information Technology Industry, adding another commendation to our fold. MAIT's Level II recognition is based on the 'European Foundation for Quality Management' (EFQM), for gaining quality leadership and business competitiveness. Our certifications / awards in 2003 include ISO 9001-2000 by Bureau Veritas Certification for our InfoStructure Services and award of First Prize by ELCINA (Electronic Component Industries Association) for Quality, 2002-03. The ELCINA award criteria considers two aspects. (1) Enablers (Leadership & Management commitment, Resource Management, Product Realisation, Measurement Analysis & Improvement) and Res