KAIZEN of F1 - Philosophy of Ongoing Improvement

Arjun J Chaudhuri

Critical success factor of F1 sport in India is continuous and ongoing infrastructure and service improvements in the hosting of the grand prix event season after season. Kaizen  is Japanese business philosophy of continuous improvement of working practices and personal efficiency .It borrowed extensively from Japanese industrial management, and its roll out at the Indian Grand Prix 2012 is an excellent example for other sporting events to follow.

Notwithstanding, the exorbitant cost of conducting Formula One sport and driver safety, the second edition of Airtel sponsored INDIAN GRAND PRIX 2012 at the BIC held on 28 october 2012. Sebastian Vettel  had sealed his second  successive Indian Grand Prix title and fourth consecutive win of the season. Sebastian Vettel extended his lead of the FIA World Champion to thirteen points after beating Fernando Alonso to win the Indian GP. Vettel got off well and led from start to finish. He is now on the cusp of another record which is he has now led for 206 consecutive laps - closing in on Ayrton Senna's all-time record of 264.Vettel led from the start to the finish in typical German style. It was near faultless front-running, while Alonso successfully hunted down Lewis Hamilton, Jenson Button and finally, Mark Webber to claim an important second place.

The subsidiary company of Jaiprakash Associates [JPA] Group, Jaiprakash Sports International Ltd [JPSI] was originally commissioned to build and construct the Buddh International Circuit [BIC] in NOIDA, Uttar Pradesh State of India, after the signing of an agreement with Formula One Administration in October 2007 to host Indian Grand Prix racing event. Commercially, the JPA Group’s earnings growth and cash flow generation is primarily dependent on Real Estate and Infrastructure Development and related Materials Manufacture such as cement. This venture of JPA Group is unique in that it combines its business interest and sport to promote its brand name and sell residential and commercial property in NOIDA. BIC is part of Jaypee Sports City that is spread over 2,500 acres land which was allotted by the Yamuna Expressway Industrial Development Authority [YEA] to develop a Special Development Zone [SDZ] with SPORT as its core activity including a Motor-Race Track and a Cricket Stadium to accommodate over 100,000 spectators.

The organizers at BIC had been worked since the end of last season’s F1 race to tackle complaints that they received from F1 drivers about dust on the race track. As per media reports, Askari Zaidi, senior vice-president [Corporate Communications] at JPSI, had ensured more greenery around the race track, and hired special mechanized dusters from Bahrain.and started their work two weeks before  the race to clean up the minutest of dust particles from all over the race track.

The race track witnessed structural improvements. The width of the turns have been extended from 5m to 15m with the height of all the kerbs pegged at 25 mm and Astroturf lining along the turns to provide additional safety in the run-off areas. To ensure added benefits of media coverage to its onsite spectators on race day, video screens around the race track had been added and increased from 11 to 17. Pre and post race entertainment had been lined up for spectators who got a higher return on their ticket purchase. The second edition of the Indian Grand Prix received a huge response from bollywood and sporting fraternity and India's Olympic heroes graced the event at the Buddh International Circuit. The organizers are also tackling problems of commute for participants and spectators to and from BIC in Noida. The parking at BIC was able to hold more than 21, 000 private cars and 1,000 motorcycles. Two hundred pre-booked chartered buses were arranged for the event from the Noida City Centre metro station and nearby Knowledge Park II.Equally important is pre-race logistics of Formula One cargo that came in two lots, one by ship and the other by air.

While, the success of the Indian Grand Prix 2012 may translate into an increase in sale of residential and commercial properties of Jaypee Sports City, critical to finance such a technically demanding sport, it is to be also seen whether the same business model of Formula One is would be in a position to be adopted for other sports where land is acquired from the state government with sports marketed as the core activity for development there.