Subros : An Update - Quality Council of India
Transcription
Subros : An Update - Quality Council of India
National Workshop on “Enabling MSME to be Competitive through Quality Tools” Subros : An Update Established in 1985, Subros is the Largest AC company in India. A Joint Venture company between Suri group, Suzuki and Denso. Subros : An Update R&D Center Noida Plant Tool Room No. of Employees (Regular) : 1600 nos. Investment : 5 B Rs Installed Capacity : 1.2 million kits/ annum. (Expansion to 2 million kits/annum by 2012) Turnover - FY 2010-11 : 12.0 B Rs Quality Certifications : ISO 14001 , TS 16949 Pune Plant OHSAS 18001 Manesar Plant Future Plants Sanand Plant (2012) © Subros Limited. All rights reserved Product Range Facilities Existing Products Range Existing Plants Land (Sq Mtr.) Building (Sq Mtr.) Noida R&D Noida Compr / HX Chennai (Oragadam) Plant (2012) © Subros Limited. All rights reserved Tool Room Total New Manesar Pune Sanand Future Products Range Engine Cooling Systems Car Aircon Systems Commercial Vehicle ACs Chennai 212,348 11,840 7,000 38,688 23,566 8,940 4,500 39,940 22,517 47,500* 55,940 11,196 22,500* 16,000 3,0318,0 00* 40,000 100 20,000* 71,910 133,066* Engineering & Development Centres : Denso Subros Engineering Services Centre ( Design JV ) - Noida Central R&D – Noida Product Engg Centres – Pune, Chennai Bus A/C Compressors HVACs & Evaporator Cooling module Plant wise Product Profile : Noida – Compressors, RS Evaporators, PDC, Precision Press Shop, Tool room Manesar – Car ACs Pune – Car / CV ACs, ECM products Chennai – Car / CV ACs, ECM products, Off Road ECM / ACs, Bus AC, Truck Refrigeration © Subros Limited. All rights reserved Rail A/C Hose & Tubes Condenser Oil Coolers, CAC Truck A/c © Subros Limited. All rights reserved Subros customers Manufacturing Infrastructure Compressor Endurance Testing Machine Compressor blocks machining line Squeeze & Vacuum Die Casting Machine No clok Brazing Furnace for Condenser Injection Molding Machine Robotic Vision Inspection Condenser Core Assembly Line CNC Tube Bender © Subros Limited. All rights reserved Chip less Cutting Machine For Aluminum Tubes Vacuum Brazing Furnace for Evaporators © Subros Limited. All rights reserved 1 National Workshop on “Enabling MSME to be Competitive through Quality Tools” Product Development Infrastructure: R&D / Tool Room Calorimeter Technology & Business Solution at Subros Wire EDM Environment Test Chamber Vibration Testing CAE CNC Machines © Subros Limited. All rights reserved © Subros Limited. All rights reserved Our People, Our Strength Achievements Chairman & Senior Management Team Top Scorer MACE Audit 2011~12 Skill workshop with support from DNJP Skill workshop in progress Training Session on Shop fl oor © Subros Limited. All rights reserved © Subros Limited. All rights reserved Capacity Plan to Meet Future Customer Demand 2500 Sales Volume HVAC Basis(no. in K) N o . o f U n it (,0 0 0 ) 2000 1500 1000 500 N e t Sale s V alu e ( Rs. M illio n ) Capacity ‐ 3 Shift Basis (no. in K) Projected 22422 Indian Market Share - 40% 2000 Net Sales Value (Rs. Million) 5890 500 367 25000 20000 14204 1500 5649 393 6474 750 500 6627 750 467 506 2006‐07 2007‐08 1000 6947 619 9055 1000 747 10891 1200 895 1336 15000 1025 10000 5000 0 0 2004‐05 2005‐06 2008‐09 2009‐10 2010‐11 2011‐12 2014‐15 Tier 2 Up - gradation Subros Journey in ‘Pursuit of Perfection' Year 2004‐05 2005‐06 2006‐07 2007‐08 2008‐09 2009‐10 2010‐11 2011‐12 2014‐15 Sales Volume HVAC Basis(no. in K) 367 393 467 506 619 747 895 1025 1336 Capacity ‐ 3 Shift Basis (no. in K) 500 500 750 750 1000 1000 1200 1500 2000 Net Sales Value (Rs. Million) 5890 5649 6474 6627 6947 9055 10891 14204 22422 © Subros Limited. All rights reserved © Subros Limited. All rights reserved 2 National Workshop on “Enabling MSME to be Competitive through Quality Tools” Subros Defects Trend at MUL Line In House PPM Trend Major Concer n Major Concer n © Subros Limited. All rights reserved © Subros Limited. All rights reserved Background 60 50 GOOD Between 2004-2011 Subros has made tremendous effort to improve Quality. Number of Defects / Year Trend of Customer Complaints 48 40 30 20 14 15 17 16 7 10 14 6 6 0 03~04 04~05 05~06 06~07 07~08 08~09 09~10 10~11 11~12 (till date) YEAR © Subros Limited. All rights reserved © Subros Limited. All rights reserved In-house PPM Trend Background 45000 41951 40000 Between 2004-2011 Subros has made tremendous effort to improve Quality. GOOD 35000 30000 PPM 25000 Analysis shows - 50~60% problem is from sub-vendors. 20000 15613 15000 10281 10000 9507 5000 0 PPM 03~04 PPM 09~10 PPM 10~11 PPM 11~12 (Upto Dec' 11) YEAR © Subros Limited. All rights reserved © Subros Limited. All rights reserved 3 National Workshop on “Enabling MSME to be Competitive through Quality Tools” Background Defects Distribution Between 2004-2011 Subros has made tremendous effort to improve Quality. Year 02~04 In-house 43% Analysis shows vendors. - 50~60% problem is from sub- Sustenance of Quality Improvement not feasible without improving the complete supply chain. Vendor Parts 57% © Subros Limited. All rights reserved © Subros Limited. All rights reserved Improvement Targets - Tier 2 Development Subros Vision 2015 for TIER 2 Demand Chain Management Strong supplier capability with self sustained quality systems and overall excellence. Efficiency Responsiveness SCM Replicate the OEM experience of Tier-1 vendor upgradation to Tier-2. ZERO DEFECT Entire Supplier Base move towards ‘Manufacturing Excellence’ along with Subros through Systems Up gradation. Optimum Inventory Vendor end PPM at Subros end = Max 50 PPM. Efficient transportation All vendors to be TS-16949 Certified. I N V E N T O R Y L O G IS TI C S Q U A L I T Y C O M M U N I C A TI O N F A C I L I T I E S Dedicated Facilities Faster & Effective Communicatio n Subros Limited © Subros Limited. All rights reserved © Subros Limited. All rights reserved Approach History – Vendor Parts PPM Trend Focused Improvement Activities Act 30000 72468 High Vendor Receipt PPM at Subros end. 67132 Check Plan Cluster Improvement Activity Assess situation Set Targets Rej. (PPM) 24000 Review Meetings with Suppliers 18000 12000 6000 Do Teach & Impart Subros learning in quality Journey to extended partners © Subros Limited. All rights reserved 0 (Cumm. Apr'02-Mar'03) (Cumm. Apr'03-Mar'04) © Subros Limited. All rights reserved 4 National Workshop on “Enabling MSME to be Competitive through Quality Tools” History – Vendor Parts Delivery Trend Abnormally High Vendor Defects at Subros end. 110 100 90 80 70 60 50 40 30 20 10 0 96 87 No. of delivery failures No. of defects History – Vendor Parts Defect Trend (Cumm. defects, Apr'02Mar'03) 120 110 100 90 80 70 60 50 40 30 20 10 0 (Cumm. defects, Apr'03Mar'04) © Subros Limited. All rights reserved 99 67 (Cumm. delivery failure, Apr'02-Mar'03) (Cumm. delivery failure, Apr'03-Mar'04) © Subros Limited. All rights reserved Vendor parts defect stratification Control Plan Not Followed 11% Production Downtime / Frequent Line Stoppages at Subros end due to High nos. of Delivery Issues. Inspection Gauge NA 6% Work Instruction Not followed 22% Vendor Inspection process NG 11% Vendor Parts Defects Distribution Sporadic Issues 16% Improper Handling 6% Process fool proofing NA 6% Tool Condition NG 6% Set up pc. Mixup 32% © Subros Limited. All rights reserved Nonadherence to Existing Systems 26% System Gaps 58% © Subros Limited. All rights reserved Approach Vendor Targets Focused Improvement Activities Check Cluster Improvement Activity Plan Review Meetings with Suppliers GOOD Act Assess situation Set Targets Do 2004-07 2007-11 2007-11 2011~12 Teach & Impart Subros learning in quality Journey to extended partners © Subros Limited. All rights reserved © Subros Limited. All rights reserved 5 National Workshop on “Enabling MSME to be Competitive through Quality Tools” Vendor Targets Vendor Targets GOOD GOOD 500 2004~07 2007-11 2004~07 © Subros Limited. All rights reserved 2007-11 2007-11 © Subros Limited. All rights reserved Vendor Targets Approach Focused Improvement Activities Act GOOD 2004~07 Check Cluster Improvement Activity Plan Review Meetings with Suppliers Assess situation Set Targets Do 2007-11 Teach & Impart Subros learning in quality Journey to extended partners © Subros Limited. All rights reserved Focus of Improvement Activities Implement effective Change Control Management. Operators skill review at critical stations. System to eliminate set up piece mix up. Poka Yoke for fitment parameters of OEM’s. Tool Maintenance. © Subros Limited. All rights reserved © Subros Limited. All rights reserved Back Bone of Cluster Activity © Subros Limited. All rights reserved 6 National Workshop on “Enabling MSME to be Competitive through Quality Tools” Quality Improvement Activities List of Cluster-1 Vendors Total : 8 Vendors Initiative Criticality of Parts S.NO. Supplied • Design Specification Joint Review with Tier 2. • Tool Design Review. • Joint Tool Maintenance Initiative SSIG Activity Launched 2009~10 2007~08 Initiative System Up gradation to ISO/TS 16949 • MACE Cluster-2 Launched Initiative • MACE Cluster-1 Launched 2005~07 Trainings & Execution of Projects at Vendor Cluster Members © Subros Limited. All rights reserved LOCATION SUMATI ENGG. P. LTD. FARIDABAD 2 PYN PRECISION COMPONENTS FARIDABAD 3 SWASTIKA AUTOMATICS FARIDABAD 4 SPECIAL TOOLS P. LTD. SAHIBABAD 5 ALLENA AUTO P. LTD. MOHALI 6 SUNVISOR INDIA P. LTD GURGAON 7 INTERFACE MICROSYSTEMS GURGAON NRB BEARINGS LTD. JALNA / THANE Quality 8 Performanc e at Subros Initiative 2004~05 VENDOR 1 Busines s Volume © Subros Limited. All rights reserved Activity Plan Quality Improvement Activities Fundamentals & Trainings Phase 1 Phase-1 (2005-06) Phase-2 (2006~07) 1. Customer Satisfaction Report 1. Complete 5 S implementation 1. Cluster – 2 Launched 2. Training of Cluster Members 2. Lean Manufacturing 2. Lean Manufacturing 3. Red Bin Analysis (In house rejection analysis) 3. Gemba Kaizen 4. Deep Analysis 3. Tool Maintenance Execution of Projects Phase 2 4. Bench Marking Phase 3 © Subros Limited. All rights reserved Implementation of 1S and 2S 5. Single piece flow – Model Line. 6. Quality circle activity 7. Poka Yoke 5. Energy Cost Monitoring 6. Cost of Poor Quality Phase-3 (2007~09) Horizontal Deployment 4. External Participation in Cluster Competitions. © Subros Limited. All rights reserved Customer Satisfaction Report Monthly Quality Feedback – Tier 2 M/s NRB Bearings Ltd. S # Control Parameter 2009-10 Apr-09 May09 1 Rejection at Subros PPM 7132 0 0 2 Defect noted at Subros Nos 3 1 1 0 3 Supplier Quality Rating 0-100 Scale 37 50 50 4 Delivery not as per schedule No of times 0 0 5 Any other concern of customer 0 0 6 Subros Satisfaction Index (Cumm) 0-10 Scale © Subros Limited. All rights reserved Jun-09 Jul09 Aug09 Sep09 Oct09 Nov09 Dec09 Jan10 Feb10 Mar10 2009-10 TARGET 0 0 0 500 1 0 0 0 2 60 0 40 10 40 >=90 0 0 0 0 0 0 0 0 0 0 0 0 0 0 >=9 © Subros Limited. All rights reserved 7 National Workshop on “Enabling MSME to be Competitive through Quality Tools” Activity Plan Training Program Conducted for Cluster vendors Phase-1 (2005-06) Phase-2 (2006~07) 1. Customer Satisfaction Report 1. Complete 5 S implementation 1. Cluster – 2 Launched 2. Training of Cluster Members 2. Lean Manufacturing 2. Lean Manufacturing 3. Red Bin Analysis (In house rejection analysis) 3. Gemba Kaizen 4. Deep Analysis 5. Energy Cost Monitoring 3. Tool Maintenance 6. Cost of Poor Quality 4. Implementation of 1S and 2S 5. Single piece flow – Model Line. 6. Quality circle activity 7. Poka Yoke Phase-3 (2007~09) Horizontal Deployment 4. External Participation in Cluster Competitions. © Subros Limited. All rights reserved 1) 2) 3) 4) 5) 6) 7) 8) 9) Suggestion and Quality Circle Lean Manufacturing System 5–S 7 QC Tools 5 Why analysis sheet Process FMEA Energy Management Level up Training Tier-2 up gradation © Subros Limited. All rights reserved Cluster Member Training – 5S Cluster Member Training – Problem Solving © Subros Limited. All rights reserved © Subros Limited. All rights reserved Trainings impact Cluster Member Training – Lean Manufacturing Red Bin Analysis Kaizens + Poka Yoke 7 QC Tools 1S+2S +RedTag Quality Circles Small Group Activity 5S Cluster Training’s Problem Solving Tools Rejection/Rework + PPM Suggestion Scheme MPS Kaizens + Continuous Improvement Projects Single piece flow + Model Line © Subros Limited. All rights reserved © Subros Limited. All rights reserved 8 National Workshop on “Enabling MSME to be Competitive through Quality Tools” Activity Plan LEARNING FROM CLUSTER TRAINING TO TOP MANAGEMENT PASSED ON TO GRASS ROOT LEVEL © Subros Limited. All rights reserved Phase-1 (2005-06) Phase-2 (2006~07) 1. Customer Satisfaction Report 1. Complete 5 S implementation 1. Cluster – 2 Launched 2. Training of Cluster Members 2. Lean Manufacturing 2. Lean Manufacturing 3. Red Bin Analysis (In house rejection analysis) 3. Gemba Kaizen 4. Deep Analysis 5. Energy Cost Monitoring 3. Tool Maintenance 6. Cost of Poor Quality 4. Implementation of 1S and 2S 5. Single piece flow – Model Line. 6. Quality circle activity 7. Poka Yoke © Subros Limited. All rights reserved 4. External Participation in Cluster Competitions. Activity Plan Phase-1 (2005-06) Phase-2 (2006~07) 1. Customer Satisfaction Report 1. Complete 5 S implementation 1. Cluster – 2 Launched 2. Training of Cluster Members 2. Lean Manufacturing 2. Lean Manufacturing 3. Gemba Kaizen 3. Red Bin Analysis (In house rejection analysis) 4. Deep Analysis 3. Tool Maintenance 4. 1S /2S in Press Shop – M/s NRB Horizontal Deployment © Subros Limited. All rights reserved Red Bin Analysis – M/s STPL ( Tier 2 ) © Subros Limited. All rights reserved Phase-3 (2007~09) Implementation of 1S and 2S 5. Single piece flow – Model Line. 6. Quality circle activity 7. Poka Yoke 5. Energy Cost Monitoring 6. Cost of Poor Quality Phase-3 (2007~09) Horizontal Deployment 4. External Participation in Cluster Competitions. © Subros Limited. All rights reserved 1S /2S in Molding Shop – M/s Sanatan © Subros Limited. All rights reserved 9 National Workshop on “Enabling MSME to be Competitive through Quality Tools” Activity Plan Tool Room 1S / 2S Activity – M/s NRB Phase-1 (2005-06) Phase-2 (2006~07) 1. Customer Satisfaction Report 1. Complete 5 S implementation 1. Cluster – 2 Launched 2. Training of Cluster Members 2. Lean Manufacturing 2. Lean Manufacturing 3. Gemba Kaizen 3. Tool Maintenance 3. © Subros Limited. All rights reserved Red Bin Analysis (In house rejection analysis) 4. Implementation of 1S and 2S 5. Single piece flow – Model Line. 6. Quality circle activity 7. Poka Yoke 4. Deep Analysis 5. Energy Cost Monitoring 6. Cost of Poor Quality Phase-3 (2007~09) Horizontal Deployment 4. External Participation in Cluster Competitions. © Subros Limited. All rights reserved Single Piece Flow Line M/s Allena Single Piece Flow Line M/s PSPL PRODUCTION SHOP BEFORE © Subros Limited. All rights reserved AFTER COMMENTS: COMMENTS: 1. ZIG ZAG PROCESS FLOW 1. SINGLE PIECE FLOW. © Subros Limited. All rights reserved Quality Circles Learning from Cluster Activity Plan BRAIN STOARMING SESSION ON SHOP FLOOR – Tier 2 Phase-1 (2005-06) Phase-2 (2006~07) 1. Customer Satisfaction Report 1. Complete 5 S implementation 1. Cluster – 2 Launched 2. Training of Cluster Members 2. Lean Manufacturing 2. Lean Manufacturing 3. Gemba Kaizen 3. Red Bin Analysis (In house rejection analysis) 4. Deep Analysis 3. Tool Maintenance 4. Implementation of 1S and 2S 5. Single piece flow – Model Line. 6. Quality circle activity 7. Poka Yoke © Subros Limited. All rights reserved 5. Energy Cost Monitoring 6. Cost of Poor Quality Phase-3 (2007~09) Horizontal Deployment 4. External Participation in Cluster Competitions. © Subros Limited. All rights reserved 10 National Workshop on “Enabling MSME to be Competitive through Quality Tools” ACTIONS INITIATED BASED ON QC FINDINGS DEFECT CAUSE ANALYSIS PIE ANALYSIS – DIMENSIONAL VARIATION PIE ANALYSIS – BURRS DEFECTS INSPECTION METHOD 22% TOOL DESIGN 41% PROCESS PARAMETERS 4% PREVENTIVE MAINTENANCE 43% PREVENTIVE MAINTENANCE 26% SKILL OF OPERATOR 7% PIE ANALYSIS – DENT Inadequate Tool Design Tool Design review with Subros started jointly. Offset in parts, Inadequate Method of Inspection not in line with SL Method of inspection aligned with Subros Inadequate Tool Preventive Maintenance Adherence of Preventive maintenance of Tools started. Inadequate Process Design Kaizen Implemented PIE ANALYSIS – OFFSET IN COMPONENTS TOOL DESIGN 20% Burrs SPARE FEEDER 7% 54% PREVENTIVE MAINTENANCE 38% SKILL OF OPERATOR 8% PREVENTIVE MAINTENANCE 57% Dents PROCESS PARAMETERS 8% © Subros Limited. All rights reserved RESULTS ACTION PLAN Dimensional variation TOOL DESIGN 13% TOOL DESIGN 8% Chips getting stuck up CAUSE METHOD OF INSPECTION 44% Reduced Defects at Customer end. Reduced PPM Level at Customer End. Tool Breakdow n time reduced. Tool life increased. © Subros Limited. All rights reserved Quality Circle Competition – Tier 2 ACHIEVEMENT : SUBROS CLUSTER Over All Winner - 1st Position MPS Competition ( All MACE Cluster Members ) MSIL M/s SANATAN AUTOPLAST Change MACE team along with cluster members - Q.C. competition at Subros © Subros Limited. All rights reserved © Subros Limited. All rights reserved Poka Yoke Implementation At M/S Swastika Activity Plan Part Name Phase-1 (2005-06) Phase-2 (2006~07) 1. Customer Satisfaction Report 1. 2. Training of Cluster Members 3. Red Bin Analysis (In house rejection analysis) 4. Implementation of 1S and 2S 5. Single piece flow – Model Line. 6. Quality circle activity 7. Poka Yoke © Subros Limited. All rights reserved Phase-3 (2007~09) Complete 5 S implementation 1. 2. Lean Manufacturing 2. 3. Gemba Kaizen 4. Deep Analysis 5. Energy Cost Monitoring 6. Cost of Poor Quality Cluster – 2 Launched Lean Manufacturing :- Cap Receiver Bush Collar 2.00 ± 0.1 Part no. :- 647831-3060 Problem Observed :- Milling cutter cut Collar thickness 2mm. Effect :- Leakage Problem Problem occur :- Subros POKA YOKE :- Provided under cut in Adopter to control collar thickness Milling Dimn 31-0.1 Before After Horizontal Deployment 3. 4. Under cut slot 2mm Provided Tool Maintenance External Participation in Cluster Competitions. Milling cutter can cut collar thickness Milling cutter can not cut collar thickness. © Subros Limited. All rights reserved 11 National Workshop on “Enabling MSME to be Competitive through Quality Tools” Poka Yoke Implementation At M/s Swastika Poka Yoke Implementation At M/s Metal Former Part Name :- Bush Receiver Part Name :- Cover Dust Part no. :- 647831-3090 Part no. :- 047372-0830 Problem Observed :- without milling piece observed Problem Observed :- Bending Angle 200 +0/-10 & 650 +20/-00 Found NG Effect :- Fitment Problem Effect :- Fitment Problem Problem occur :- In-House. POKA YOKE :- Introduced 3 Locator to fool proof the bending in given tolerance angle Milling Dimn 28-0.1 Problem occur :- In-House. POKA YOKE :- Make a profile in Jig to control without milling operation. Before only one locater provided & open type tool After Before no profile of dimn 28 Profile dimn 28 Without milling piece can be missed Without milling piece can not drill © Subros Limited. All rights reserved Comments :- Locater on one side only for bending operation so that piece was shifting from its original position while operating. three locaters provided no chances of piece shifting & close type tool Comments :- Locater provided on all the three sides for bending operation so no chances of bending being N.G as the piece cannot shift. © Subros Limited. All rights reserved Poka Yoke Implementation At M/s Swastika Poka Yoke Implementation At M/s Global Part Name :- Charging Port Part Name :- Tube connector Part no. :- 646171-3780 Part no. :- 646172-3400 Problem Observed :- Chamfer operation miss Problem Observed :- CD 14.0 ±0.3 was observed under size / Over Size Effect :- Fitment Problem Effect :- Fitment Problem Problem occur :- In-House. Problem occur :- In-House. POKA YOKE :- Introduced Chamfer in fixture to fool proof the chamfer in component POKA YOKE :- Introduced a Pin to fool proof CD O.K PART WITH CHAMFER Chamfer provided on the bottom of pin inside the fixture Comments :- Chamfer missing can not detected in the process. Method of detection for chamfer missing is visual inspection. Provided Locators for CD Comments :- PIN provided in the CNC fixture & chamfer provided at the bottom of pin which will not allow any with out chamfer part to sit into the CNC fixture © Subros Limited. All rights reserved No control to detect CD 14.0±0.3 Error proofing to control CD 14.0±0.3 © Subros Limited. All rights reserved Poka Yoke Implementation At M/S Swastika Poka Yoke Implementation At M/S Global :- Tube Connector Part no. :- 445012-4020 Problem Observed :- Dia 16.0 +0.05-0.15 Over Size. Reason :- Insert worn out. Effect :- Fitment Problem Problem occur :- In-house Problem POKA YOKE :- Inserting dia 16 in Jig while drilling to avoid mixing of Dia 16.00 Part Name :- Bracket Part no. :- 647782-0830 Problem Observed :- Without operation pc.mixing Reason :- operation missing Effect :- Fitment Problem Problem occur :- In-house Problem POKA YOKE :- Provided T stopper in drilling Jig to avoid mixing of without milling operation Over size pieces Before Remarks:- No detection of oversize pieces . After Remarks:- over size pieces can not be drilled. 26.0±0.2 Part Name © Subros Limited. All rights reserved CD 14.0 ±0.3 Before Remarks:-Don't detect pcs without milling After Remarks:- Detect without milling pcs © Subros Limited. All rights reserved 12 National Workshop on “Enabling MSME to be Competitive through Quality Tools” Tool Kit at Shop Floor – Tier 2 Activity Plan Phase-1 (2005-06) Phase-2 (2006~07) 1. Customer Satisfaction Report 1. Complete 5 S implementation 1. Cluster – 2 Launched 2. Training of Cluster Members 2. Lean Manufacturing 2. Lean Manufacturing 3. Gemba Kaizen 3. Tool Maintenance 3. Red Bin Analysis (In house rejection analysis) 4. Implementation of 1S and 2S 5. Single piece flow – Model Line. 6. Quality circle activity 7. Poka Yoke 4. Deep Analysis 5. Energy Cost Monitoring 6. Cost of Poor Quality Phase-3 (2007~09) Horizontal Deployment 4. External Participation in Cluster Competitions. © Subros Limited. All rights reserved © Subros Limited. All rights reserved 2S in Grinders Cupboard – Tier 2 5S Improvements on Vendor Shop Floor RM STORAGE AREA BEFORE COMMENTS: Unorganized Store Area. AFTER COMMENTS:. ORGANISED STORE AREA WITH FIFO. © Subros Limited. All rights reserved © Subros Limited. All rights reserved 5S Improvements on Vendor Shop Floor 5S Improvements on Vendor Shop Floor FINAL INSPECTION AREA TOOL STORAGE AREA BEFORE AFTER BEFORE AFTER BEFORE COMMENTS: COMMENTS: INADEQUATE TOOL STORAGE © Subros Limited. All rights reserved COMMENTS: TOOL CONTROL IN LINE WITH BEST MANUFACTURING PRACTICE. RANDOM INSPECTION FLOW CREATING MIX UPS AFTER COMMENTS:. DEDICATED INSPECTION STATION WITH INWARD & OUTWARD FLOW © Subros Limited. All rights reserved 13 National Workshop on “Enabling MSME to be Competitive through Quality Tools” Raw Material Storage Area Improvement © Subros Limited. All rights reserved © Subros Limited. All rights reserved Activity Plan Lean Manufacturing Focus Phase-1 (2005-06) Phase-2 (2006~07) 1. Customer Satisfaction Report 1. Complete 5 S implementation 1. Cluster – 2 Launched 2. Training of Cluster Members 2. Lean Manufacturing 2. Lean Manufacturing 3. Gemba Kaizen 3. Red Bin Analysis (In house rejection analysis) 4. Deep Analysis 3. Tool Maintenance 4. Implementation of 1S and 2S 5. Single piece flow – Model Line. 6. Quality circle activity 7. Poka Yoke Visual Management Improvement 5. Energy Cost Monitoring 6. Cost of Poor Quality Phase-3 (2007~09) Horizontal Deployment 4. External Participation in Cluster Competitions. © Subros Limited. All rights reserved © Subros Limited. All rights reserved IDENTIFYING WASTE IDENTIFYING WASTE Over production Unnecessary Processing Unnecessary movement Producing Defective parts Excessive inventory Unnecessary transport Idle time Unnecessary inspections © Subros Limited. All rights reserved © Subros Limited. All rights reserved 14 National Workshop on “Enabling MSME to be Competitive through Quality Tools” Lean Manufacturing Example Lean Manufacturing “ NECESSITY IS THE MOTHER OF INVENTION” Above quote motivated us to study the feasibility of “Single piece model line flow” Concept of model line given by – MACE/SUBROS and training provided Ist Phase : Lean Manufacturing projects implemented by cluster vendors in different areas : a) Man power productivity improvement b) Reduction in MUDA of material flow © Subros Limited. All rights reserved 1 © Subros Limited. All rights reserved THE WAGON-R SINGLE PIECE FLOW MODEL LINE SUCCESS STORY METHODOLOGY ADOPTED AIM : - TO MAKE A MODEL LINE FOR SUBROS CMB 646260-4361 TOOLS USED IN IMPLEMENTATION OF MODEL LINE CONCEPT REASONS FOR SELECTION TIME STUDY KAIZEN POKA-YOKE SMALL GROUP ACTIVITY QUALITY CIRCLE 1. Customer demand higher than Allena capacity. 2. Low through put in existing line. 3. Mixed component causing high rejection, rework and mixing of component. 4. Material movement very high. 5. Customer dissatisfied. © Subros Limited. All rights reserved 1 © Subros Limited. All rights reserved METHODOLOGY ADOPTED PROCESS FLOW BEFORE IMPLEMENTATION MATERIAL MOVEMENT – 63 meter 1- ARGO VM 11 - ARGO - VM28 16 - BDM - 04 13 - BDM TP - 05 M TG F A C E M ILLIN G S LOTTIN G F IN A L C OU N TER S TU D S P OT F A C IN G 15 0 P c s / 12 Hrs . 2 2 0 P c s / 12 Hrs . 2 5 0 P c s / 12 Hrs . 3 0 0 P c s / 12 Hrs . 2 - BDM - 15 10 - KAE DEE - VM33 M TG HOLE D R ILLIN G & IN S ID E F LA N GE M ILLIN G R EA M IN G 2 2 0 P c s / 12 Hrs . 12 0 P c s / 12 Hrs . FISHBONE DIAGRAM MADE TO STUDY 4M CONSTRAINTS SUSPECT CAUSES MACHINE 0 MAN Number of machines less 17 - KAY DEE - VM35 12 - PDM - 17 TA P ER C U T S TU D D R ILLIN G & 2 8 0 P c s / 12 Hrs . EN D M ILLIN G D IA 9 . 0 0 mm Lay out of machine wrong Operator skill less 2 0 0 P c s / 12 Hrs . 9-BDM 05 3 - BDM 3 B o s s t a p e r d rilling 18 - PDM - TP05 C o unt e r & Ga ug e C he c king 15 0 P c s / 12 Hrs . TA P P IN G M 8 X 1. 2 5 mm 3 0 0 P c s / 12 Hrs . 5 - HM - VM30 LOW OUTPUT 2 4 0 P c s / 12 Hrs . 6 - KAY DEE-VM29 S M A LL B OTTOM F LA N GE 4 - PDM - 01 14 - BDM VM31 M ILLIN G M TG HOLE S P OT F A C IN G B OTTOM F LA N GE S P OTF A C E 2 3 0 P c s / 12 Hrs . 2 2 0 P c s / 12 Hrs . 2 10 P c s / 12 Hrs . LON G F LA N GE OU TER Material movement high M ILLIN G 15 0 P c s / 12 Hrs . 7 - CNC - 01 * 7 - ARGO 15 - PDM - 16 M ILLIN G 3 - B OS S TA P ER F IN A L S P OT F A C E 10 . 0 0 mm 12 0 P c s / 12 Hrs . M ILLIN G & 5. 0 0 mm C U T 2 5 0 P c s / 12 Hrs . 3 - B OS S TA P ER 8 -MULTI SPINDLE MS-02 D R ILLIN G OU TER F LA N GE. 2 0 0 P c s / 12 Hrs . © Subros Limited. All rights reserved WIP high Dedicated machine not given for all operations 10 0 P c s / 12 Hrs . METHOD Material mixed MATERIAL © Subros Limited. All rights reserved 15 National Workshop on “Enabling MSME to be Competitive through Quality Tools” LAY OUT OF 1ST PHASE 1-SPM SPM 02M TG.F AC E M ILLING 200 P c s / 12 Hrs . M TG.F AC E M ILLING 200 P c s / 12 Hrs . 2 - B D M - 15 M T G HOLE DR ILLING & R EAM ING 120 P c s / 12 Hrs . 2 - B D M - 15 M T G HOLE DR ILLING & R EAM ING 120 P c s / 12 Hrs . 1ST LEVEL CHANGE IN LAYOUT 11 - PDM - 17 10 - ARGO - VM 28 STUD DR ILLING & SLOTTING 2 2 0 Pcs / 12 Hrs . END M ILLING DIA 9 .0 0 mm 2 2 0 Pcs / 12 Hrs . 12 - BDM TP - 05 STUD SPOT FAC ING 3 0 0 Pcs / 12 Hrs . 9 - ARGO - VM 33 INSIDE FLANGE M ILLING 2 2 0 Pcs / 12 Hrs . 3 - BDM 13 - BDM VM 31 C o unt er & Gaug e C hecking 3 0 0 Pcs / 12 Hrs . B OTTOM FLANGE SPOTFAC E 2 50 Pcs / 12 Hrs . 4 - PDM - 01 14 - PDM - 16 M TG HOLE SPOT FAC ING 8 -SPM 2 50 Pcs / 12 Hrs . 3 BOSS TAPER DR ILLING & DRILLING OUTER FLANGE. 2 50 Pcs / 12 Hrs . FINAL SPOT FACE 10 .0 0 mm 2 50 Pcs / 12 Hrs . 15 - BDM - 04 5 - HM - VM 30 FINAL C OUNTER LONG FLANGE OUTER 3 0 0 Pcs / 12 Hrs . M ILLING 7 - ARGO 16 0 Pcs / 12 Hrs . 3 B OSS TAPER M ILLING & 5 M M C UT M ILLING 16 - ARGO - VM 35 10 0 Pcs / 12 Hrs . 5-CN C M IL L IN G (AKSHARA) TAPER CUT LONG FLANGE OUTER M ILLING 2 0 0 Pcs / 12 Hrs . 3 2 0 Pcs / 12 Hrs . 7 - CNC - 01 3 - B OSS TAPER 17 - PDM - TP05 6 - ARGO-VM 29 M ILLING TAPPING M 8 X 1.2 5mm SM ALL B OTTOM FLANGE M ILLING 2 50 Pcs / 12 Hrs . 150 Pcs / 12 Hrs . 2 50 Pcs / 12 Hrs . © Subros Limited. All rights reserved © Subros Limited. All rights reserved KAIZENS IMPLEMENTED IN 1ST PHASE INHOUSE TEAM FORMED FOR SPM DESIGNING NEW SPM INTRODUCED FOR BASE MILLING OPERATION NO 01 :- BASE MILLING CONSTRAINT :- PRODUCTIVITY LOW Change BEFORE BENEFITS: - © Subros Limited. All rights reserved 1. Manpower Saved: - 01 2. Jigs / Fixtures Saved: - 01 3. Productivity increased by: - 100 pcs. (15%) © Subros Limited. All rights reserved KAIZENS IMPLEMENTED IN 2nd PHASE NEW SPM INTRODUCED FOR TOP MILLING OPERATION NO 04 :- TOP MILLING CONSTRAINT :- QUALITY(Dimn. 104.4)& PRODUCTIVITY VERTICAL MILLING MACHINE AFTER LAY OUT OF 2nd PHASE MODEL LINE SINGLE PIECE FLOW OPERATION NO. 1 OPERATION NO. 2 ROTARY MILLING MACHINE OPERATION NO. 3 OPERATION NO. 4 OPERATION NO. 5 OPERATION NO. 6 OPERATION NO. 7 OPERATION NO. 8 OPERATION NO. 9 OPERATION NO. 10 OPERATION NO. 11 BEFORE OPERATION NO. 12 AFTER OPERATION NO. 13 BENEFIT : Considering the TACT study. We designed a new concept Rotary Milling Machine with 4 Fixtures. It increased the output of CMB Wagon-R by 100% on this operation and the quality problem is also solved. © Subros Limited. All rights reserved OPERATION NO. 14 OPERATION NO. 15 OPERATION NO. 16 © Subros Limited. All rights reserved 16 National Workshop on “Enabling MSME to be Competitive through Quality Tools” SUMMARY OF ACHIEVEMENTS OVER ALL IMPROVEMENT 1000 800 800 600 G O O D 600 0.60% PREVIOUS 400 0.40% 1st PHASE 400 0.45% 0.35% PREVIOUS 0.20% 0.20% 2nd PHASE 200 G O O D 0 1st PHASE 2nd PHASE 0.00% REJECTION PRODUCTION G O O D 80 63 meter 60 34 meter 40 10 meter 20 PREVIOUS 1st PHASE 2nd PHASE 0 Reduced Zig-zag flow. Saved 1 floor utilized for lab. Saved 3 Manpower. Reduced the Man & material movement. Reduced the input material movement. Reduced the dispatching material time. Reduced the WIP. Saving of Chemicals and Energy. Dust prevention. 5S improved drastically. MATERIAL MOVEMENT © Subros Limited. All rights reserved 1 © Subros Limited. All rights reserved Quality Improvement Activities Lean Manufacturing Initiative • Design Specification Joint Review with Tier 2. • Tool Design Review. • Joint Tool Maintenance 2nd Phase : Lean Manufacturing projects are to be taken up for implementation Initiative SSIG Activity Launched 2008~10 a) Improvement in Inventory turn ratio b) Reduction in energy consumption 2006~07 • MACE Cluster-1 Launched 2005~06 d) Reduction in break down time of machines & improvement of O.E.E. Initiative 2004~05 SSIG Methodology Supplier System Improvement Group SUBROS Initiative Subros Requirement Implementation by TEAM at Vendor’s End SSIG SSIG © Subros Limited. All rights reserved Trainings & Execution of Projects at Vendor Cluster Members © Subros Limited. All rights reserved © Subros Limited. All rights reserved Vendor Existing System Initiative System Up gradation to ISO/TS 16949 • MACE Cluster-2 Launched Initiative c) Quality improvements Effectiveness monitoring © Subros Limited. All rights reserved 17 National Workshop on “Enabling MSME to be Competitive through Quality Tools” SSIG Methodology Quality Improvement Activities Initiative Current System Review Based on Ideal System Check Sheet • Design Specification Joint Review with Tier 2. • Tool Design Review. • Joint Tool Maintenance Initiative Gap Analysis SSIG Activity Launched 2008~10 Implementation of New System 2006~07 Initiative System Up gradation to ISO/TS 16949 • MACE Cluster-2 Launched Initiative • MACE Cluster-1 Launched 2005~06 Initiative Fine Tuning Trainings & Execution of Projects at Vendor Cluster Members 2004~05 © Subros Limited. All rights reserved © Subros Limited. All rights reserved Quality Improvement Activities NUMBER OF SUPPLIER ISO-9001 / TS16949 Certification Trend 100 90 80 70 60 50 40 30 20 10 0 73 36 47 42 42 22 19 13 6 2004 G O O D Initiative • Design Specification Joint Review with Tier 2. • Tool Design Review. • Joint Tool Maintenance Initiative SSIG Activity Launched 2008~10 29 14 18 8 2005 82 78 2006 YEAR TS 16949 36 31 2007~08 46 Initiative • MACE Cluster-1 Launched 2007 2008 Initiative 2004~05 ISO 9001 © Subros Limited. All rights reserved System Up gradation to ISO/TS 16949 • MACE Cluster-2 Launched 2005~06 2009 Initiative Trainings & Execution of Projects at Vendor Cluster Members © Subros Limited. All rights reserved List of Cluster-2 Vendors Total : 6 Vendors S.NO VENDOR LOCATION 1 SUPER SCREWS FARIDABAD 2 SANATAN MACHINE TOOLS FARIDABAD 3 GLOBAL AUTOTECH 4 SOUTHEAST ELECTRONICS GHAZIABAD 5 PSPL GHAZIABAD 6 MOHINDRA FASTENERS LTD NOIDA Improvement Status ROHTAK Sharing of Good Manufacturing Practices started between 2 Clusters. © Subros Limited. All rights reserved © Subros Limited. All rights reserved 18 National Workshop on “Enabling MSME to be Competitive through Quality Tools” VENDOR PARTS DEFECTS AT SUBROS END VENDOR PARTS PPM TREND START OF Cluster Improvement Activities 72468 No. of defects / month 93% 50500 33% 45938 30945 25500 13165 27% 9603 51% 4636 2000 500 AVG.' 02-03 AVG.' 03-04 AVG.' 04-05 AVG. 05-06 AVG. '06-07 START OF Cluster Improvement Activities 10 9 8 7 6 5 4 3 2 1 0 32% 67132 PPM Rejection G O O D AVG. '07-08 G O O D 60.4% 8.08 4% 6.25 6 (97) (75) 4.25 (72) 3.92 3.2 (51) 2004-05 2005-06 2006-07 AVG. Target '08-09 08-09 (47) 2007-08 2008-09 (16) 2009-10 (Aug'09) Year © Subros Limited. All rights reserved © Subros Limited. All rights reserved SSIG CLUSTER VENDOR PPM TREND SSIG CLUSTER VENDOR DEFECT TREND 31403 65% 17000 15000 12 G O O D 56% 19000 13706 PPM PPM 33% 8 48% 13000 10881 11000 6.83 4.58 31% 3.16 4 5693 7000 2 2 5000 3000 0 500 06~07 1000 05~06 06~07 07~08 08~09 07~08 Year Year Number of Poka Yoke / Kaizens through SQIG at Vendor End ( Cumulative ) G O O D 46% 23% 114 17% 100 G O O D 180 67% 88 73 150 160 110 NUMBERS 120 80 09~10 Target'08~09 ( Up to Sep 09 ) © Subros Limited. All rights reserved Cp/ Cpk improvement > 1.33 (Vendor End) ( Cumulative ) 15% 08~09 Target'08~09 © Subros Limited. All rights reserved NUMBERS 33% 6 141% 9000 G O O D 70% 10.25 10 140 13% 16% 131 114 120 96 100 55% 62 80 60 60 40 43 40 20 20 0 05~06 0 05~06 © Subros Limited. All rights reserved 06~07 Year 07~08 08~09 06~07 07~08 08~09 Target'08~09 Year Target'08~09 © Subros Limited. All rights reserved 19 National Workshop on “Enabling MSME to be Competitive through Quality Tools” Approach Vendor Improvement Review Process Focused Improvement Activities Cluster Improvement Activity Plan Review Meetings with Suppliers Check Act Activity Frequency Attended by MACE Cluster Monthly All 1st & 2nd Cluster Members Quality Meeting Quarterly Category-wise Supplier (Sheet Metal, Electrical) Low Performing Vendors Quarterly Selected Few Vendor Meet Annual All Vendor base Assess situation Set Targets Do Teach & Impart Subros learning in quality Journey to extended partners © Subros Limited. All rights reserved © Subros Limited. All rights reserved Vendor Improvement Review Process Cluster Performance Review © Subros Limited. All rights reserved Activity Frequency Attended by MACE Cluster Monthly All 1st & 2nd Cluster Members Quality Meeting Quarterly Category-wise Supplier (Sheet Metal, Electrical) Low Performing Vendors Quarterly Selected Few Vendor Meet Annual All Vendor base © Subros Limited. All rights reserved Sheet Metal Group Vendor Review © Subros Limited. All rights reserved Vendor Improvement Review Process Activity Frequency Attended by MACE Cluster Monthly All 1st & 2nd Cluster Members Quality Meeting Quarterly Category-wise Supplier (Sheet Metal, Electrical) Low Performing Vendors Quarterly Selected Few Vendor Meet Annual All Vendor base © Subros Limited. All rights reserved 20 National Workshop on “Enabling MSME to be Competitive through Quality Tools” Vendor Improvement Review Process Repeat Complaint Vendor’s Review Activity Frequency Attended by MACE Cluster Monthly All 1st & 2nd Cluster Members Quality Meeting Quarterly Category-wise Supplier (Sheet Metal, Electrical) Low Performing Vendors Quarterly Selected Few Vendor Meet Annual All Vendor base © Subros Limited. All rights reserved © Subros Limited. All rights reserved Subros Vendor Meet - Sep 2009 Award Distribution at Subros Vendor Meet Chief Guests with Subros Top Management Vision & Mission Commitment for Future Customer Voice by Mr S Maitra (MEO –Supply Chain MSIL) © Subros Limited. All rights reserved Award Winner s A Growing Commitmen t each year © Subros Limited. All rights reserved Approach Next Phase of Improvement Activities Focused Improvement Activities Cluster Improvement Activity Tool & Gauge Design Tool Maintenance Support. Plan Review Meetings with Suppliers Check Act Assess situation Set Targets Do Lean Manufacturing implementation at Cluster II Vendors. Guidance & Training on Cost of Poor Quality at Tier 2. Teach & Impart Subros learning in quality Journey to extended partners © Subros Limited. All rights reserved © Subros Limited. All rights reserved 21 National Workshop on “Enabling MSME to be Competitive through Quality Tools” TOOL MAINTENANCE SUPPORT TO VENDORS CHANGE POINT - TOOL DEVELOPMENT -Data collection of vendor tools. Change BEFORE -Quality problem history regarding the tool & component Phase 1 Part Drawing Quality Standard Tooling concept Tool Design Tool making Trial -Joint review with vendor for scope of -maintenance support By vendor By Subros -Subros team visit for tool status review Part Drawing Quality Standard By vendor CHANGE POINT Trial -Identification of critical issues FOCUS AREA By Subros Tool Making Phase 2 Review by Subros Tooling Concept Subros Approval By vendor Tool Design By vendor © Subros Limited. All rights reserved -Development of solutions Phase 3 -Implementation support at vendor end © Subros Limited. All rights reserved Vendor End Tool Support Activity Findings Vendor End Tool Maintenance Support Activity Findings Tier 2 – Tool Maintenance Joint Review Observations Tier 2 – Tool Maintenance Joint Review Observations Tool drawings not adequate. Spares drawings not available. Tool Condition inadequate Tool preventive maintenance check sheet not maintained. Critical entries of preventive are not made No preventive maintenance plan for low volume tool. © Subros Limited. All rights reserved Periodic maintenance schedule not mentioned in tool history card. © Subros Limited. All rights reserved Tier-2 Cost Performance Status Other Initiatives Improvement Journey not complete without improving other aspects of QCDD © Subros Limited. All rights reserved PE R CE N T A G E 1.0% 0.8% COST REDUCTION TREND 0.75% 0.56% 0.6% G O O D 0.4% 0.2% 0.0% AVG.'02-03 AVG.'03-04 YEAR © Subros Limited. All rights reserved 22 National Workshop on “Enabling MSME to be Competitive through Quality Tools” Cost Reduction Activities Alternate sourcing for high value items INITIATIVE ZERO BASED COSTING OF ‘A’ CLASS COMPONENTS 2008~10 2006~07 INITIATIVE INITIATIVE Alternate sourcing for high value items 2005~06 Cost Reduction Kaizens INITIATIVE MPS INTRODUCED AT VENDORS 2004~05 YEAR © Subros Limited. All rights reserved © Subros Limited. All rights reserved Cost Reduction Activities Tier 2 Lean Manufacturing Projects Status S.No. INITIATIVE Zero based costing of ‘A’ Class components 2008~10 2006~07 INITIATIVE Alternate sourcing for high value items INITIATIVE 2005~06 Cost Reduction Kaizens INITIATIVE Lean Manufacturing Introduced at Vendors 2004~05 © Subros Limited. All rights reserved Vendor PROJECTS IDENTIFIED PROJECTS COMPLETED 1 SWASTIKA, FBD 2 2 2 SPECIAL TOOLS, GZD 2 2 3 ALLENA, MOHALI 2 1 4 SUMATI, FBD 2 0 5 PYN, FBD 2 0 6 INTERFACE, GGN 1 1 7 SUNVISOR, GGN 2 2 8 NRB BEARINGS 1 1 Overall Cluster 14 9 © Subros Limited. All rights reserved Lean Manufacturing Introduced at Vendors Lean Manufacturing Introduced at Vendors M/s Interface Microsystem, Gurgaon M/s Swastika Automatics, Faridabad Project: Reduction in Wastages in manufacturing process 5 G O O D 5 4.5 40 4 35 3.5 30 2.5 3 2.5 2 1.5 1 0.5 0 Before © Subros Limited. All rights reserved After MAN HOURS/DAY HOURS Project 2: Improvement at Receipt Store while issuing / receiving of material from Vendor G O O D 40 24 25 Man Hour 20 / day 15 10 8 8 G O O D 7 6 5 4 3 2 2 1 5 0 Project: Reduction in Wastages in manufacturing process Man Hour/Day Project 1: Reduction in product change over time. Before After 0 Before After © Subros Limited. All rights reserved 23 National Workshop on “Enabling MSME to be Competitive through Quality Tools” Over All Trend – Numbers of Lean Manufacturing Projects – Tier 2 Lean Manufacturing Introduced at Vendors M/s Sumati, Faridabad G O O D 54 MINUTES 50 40 30 20 20 10 0 After Projects Under Progress 8 Projects Completed 120 G O O D 120 100 80 60 7 6 7 5 4 6 3 5 30 40 20 0 Before 9 Numbers of Projects 60 10 Project 2:Reduction in Material dispatches MINUTES/DESPATCH Project 1: Reduction in Die changeover time in 40 Ton machine 2 2 1 Before After 2 0 2006~07 © Subros Limited. All rights reserved 2007~08 2008~09 2009~10 © Subros Limited. All rights reserved Cost Reduction Activities Savings Trend – Lean Manufacturing Projects – Tier 2 INITIATIVE ZERO BASED COSTING OF ‘A’ CLASS COMPONENTS 2008~10 2006~07 INITIATIVE INITIATIVE Alternate sourcing for high value items 2005~06 INITIATIVE MPS INTRODUCED AT VENDORS 2004~05 © Subros Limited. All rights reserved Cost Reduction Kaizens © Subros Limited. All rights reserved Cost Reduction Activities Zero Based Costing of ‘A’ Class Components G O O D INITIATIVE ZERO BASED COSTING OF ‘A’ CLASS COMPONENTS 2008~10 2006~07 INITIATIVE Alternate sourcing for high value items 2004~05 © Subros Limited. All rights reserved INITIATIVE 2005~06 Cost Reduction Kaizens INITIATIVE MPS INTRODUCED AT VENDORS © Subros Limited. All rights reserved 24 National Workshop on “Enabling MSME to be Competitive through Quality Tools” Cost Reduction Kaizens Cost Reduction Kaizens © Subros Limited. All rights reserved © Subros Limited. All rights reserved Tier-2 Delivery Performance Status Savings due to Cost Reduction Kaizens 12 140.0 8 100.0 6 80.0 60.0 4 No. of Proposal Savings (Lacs) 120.0 40.0 2 20.0 0.0 FY Savings (Lacs) No.of Proposals 200405 200506 200607 200708 200809 27.4 139.2 110.0 72.8 144.5 3 6 6 1 10 0 © Subros Limited. All rights reserved DELIVERY FAILURE 100 85 93 GOOD G O O D 10 80 PERCENT A GE 160.0 60 40 20 0 AVG.'02-03 YEAR AVG.'03-04 © Subros Limited. All rights reserved Delivery Improvement Activities Methodology for Local Material OLD PROCESS Schedule generated at SL from Forecast INITIATIVE • Improvement in Ordering System & Delivery to Subros Schedule sent to Supplier through courier Supplier receives Weekly schedule Individual Supplier sends bulk material on weekly basis One week material received at SL 2008~10 2006~07 INITIATIVE 2005~06 2004~05 © Subros Limited. All rights reserved BAR Coding Implementation Local Suppliers Base within same State Extranet for entire supply chain Material Requirement Planning through SAP. MRP Run on weekly basis Vendor Extranet Implementation Milk Run System for NCR supplier DOL Suppliers establishment Single piece flow at Cluster Supplier 8 no.s © Subros Limited. All rights reserved 25 National Workshop on “Enabling MSME to be Competitive through Quality Tools” Delivery Improvement Activities IT Support to Supply Chain Methodology for Local Material NEW PROCESS Daily material receiving at SL Real-time Schedule received through Extranet INITIATIVE • Improvement in Ordering System & Delivery to Subros BENIFITS 2007~09 10 Safety Stock 2 2006~07 INITIATIVE Year 2004 7 Lead Time 2005~06 Present 2 BAR Coding Implementation Local Suppliers Base within same State Extranet for entire supply chain 2004~05 In No. of days © Subros Limited. All rights reserved © Subros Limited. All rights reserved Bar Coding System Activity initially started with 13 Suppliers Now cover the entire Vendor Base Material Receipt Processing Time Reduced from 10 Mins. to 1 Minute 90% MRR Processing Time Improvemen t Supplier Schedule adherence Error proof system © Subros Limited. All rights reserved © Subros Limited. All rights reserved Delivery Improvement Activities Local Supplier Base Within Same State INITIATIVE Six A Class Suppliers have • Improvement in Ordering System & Delivery to Subros SUPPLIER COMMITMENT TOWARDS SUBROS put up their Plant near to Subros Plant 2007~09 2006~07 Proximity to customer INITIATIVE 2005~06 2004~05 © Subros Limited. All rights reserved BAR Coding Implementation Local Suppliers Base within same State Extranet for entire supply chain Daily Shipment Reduction in Inventory level © Subros Limited. All rights reserved 26 National Workshop on “Enabling MSME to be Competitive through Quality Tools” Delivery Improvement Activities IT Support to Supply Chain INITIATIVE • Improvement in Ordering System & Delivery to Subros 2007~09 2006~07 Training and Guidance to Entire Supplier base. INITIATIVE 2005~06 BAR Coding Implementation Local Suppliers Base within same State Extranet for entire supply chain 2004~05 © Subros Limited. All rights reserved © Subros Limited. All rights reserved Tier-2 Development Performance Status No. of delivery failures / year 99 G O O D 89.9 % 92% 12% 100% 2004-05 2005-06 DEVELOPMENT LEAD TIME (RFQ TO SAMPLE APPROVAL) 7 0 2006-07 2007-08 67 45 AVG.'02-03 100% 8 100% YEAR 0 AVG.'03-04 2008-09 Year © Subros Limited. All rights reserved 80 70 60 50 40 30 20 10 0 GOOD 100 90 80 70 60 50 40 30 20 10 0 START OF Cluster Improvement Activities N UM BER O F DAYS Effectiveness of Delivery Improvement Initiatives © Subros Limited. All rights reserved Development Improvement Activities New Product Development Process DEVELOPMENT REQUEST FOR QUOTATION INITIATIVE Development Lead cycle reduction planning based on bottleneck processes. SUPPLIER INVOLVEMENT SPECIFICATION MEETING PRICE NEGOTIATION MEET CUSTOME R PRICE TARGETS PPAP SUBMISSION GAUGE / TOOLING APPROVAL 2007~09 JOINT INSPECTION INITIATIVE Expert Resources with Domain Knowledge eg Sheet metal , Electricals Recruited 2004~05 © Subros Limited. All rights reserved 2006~07 2005~06 INITIATIVE 1. Supplier Involvement at Initial Development Stage 2. Green Supply Chain ONE SHIFT PRODUCTION SAMPLE APPROVAL FOCUS ON FIRST TIME RIGHT Cp, Cpk APPROVAL CAPACITY PLANNING INITIATIVE Pre- Assessment audits started to evaluate vendor capability FPP LOT APPROVAL SOP © Subros Limited. All rights reserved 27 National Workshop on “Enabling MSME to be Competitive through Quality Tools” Development Improvement Activities CHANGE POINTS - Design Review Process With Vendor Change Before Proto Part Drawing Proto Sample By Subros By Vendor Change Point Trial at Subros Final Drawing Quality Standard By Subros Proto Part Drawing Proto Sample Spec fix Meeting With Vendor Quality Standard INITIATIVE Development Lead cycle reduction planning based on bottleneck processes. Spec fix Meeting With Vendor 2007~09 Jointly Trial at Subros Learning From Vendor Part Drawing Design Review Change © Subros Limited. All rights reserved INITIATIVE Expert Resources with Domain Knowledge eg Sheet metal , Electricals Recruited 2004~05 INITIATIVE Pre- Assessment audits started to evaluate vendor capability Effectiveness of Development Initiatives GOOD All Plated parts converted to Trivalent Plating within 3 Months in 05~06 NUMBERS 2005~06 © Subros Limited. All rights reserved Green Supply Chain 90 80 70 60 50 40 30 20 10 0 INITIATIVE 1. Supplier Involvement at Initial Development Stage 2. Green Supply Chain 2006~07 G O O D 22 82 25 69 13 Total Vendors EMS 14001 Certified Vendors Activity yet to be started © Subros Limited. All rights reserved 2005 07 07 2008 09 Target 08 -09 © Subros Limited. All rights reserved Benefits of Cluster Activities Subros Continuous Achievements… Vendor’s own initiatives started in a big way to resolve Quality Issues. Lower & Middle Level involvement in Quality Drive at Tier 2. Productivity and Quality Improvement through Lean Manufacturing. Major Improvement in ‘5S’ at some of the vendors. Motivated & Dedicated Supply Chain MSIL Awards for 2006-08 MSIL Supplier Up gradation Award for 4th Consecutive Year MSIL Awards for 2008-09 ( Over All Excellence / Quality / Tier 2 Up gradation / R&D ..) © Subros Limited. All rights reserved © Subros Limited. All rights reserved 28 National Workshop on “Enabling MSME to be Competitive through Quality Tools” Take Away -Tier 2 Cluster Activity A strong and dedicated supply chain is a key factor in achieving OEM targets. Improvement initiatives work best after understanding Tier 2 constraints and evolving improvement programs accordingly. Benchmarks need to be set with horizontal implementation of Kaizens across Tier 2. Continuous support with constant reviews is must for sustained quality levels at Tier 2. Subros Cluster Relationship ‘Mantra’ We can not spell s“U”ccess without “U” Thank You . © Subros Limited. All rights reserved © Subros Limited. All rights reserved 29