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    STUDY OF INDUSTRIAL SYSTEM AT CGL

    Chapter 1

    INTRODUCTION

    Today manufacturing companies are becoming increasingly aware that excellence in

    manufacturing can provide a competitive weapon to compete in sophisticated worldwidemarkets. In order to compete effectively, companies must be capable of manufacturinginnovative product of high quality at a low cost, and also provide a first class customerservices. At the same time, they must have the flexibility to cope with short product lifecycle, demands for greater product variety from more discriminating customers andincreasing international competition. Worldclass manufacturing companies have respondedto these competitive demands by changing their traditional production system. To eliminatewaste and improve quality, an innovation approach to inventory control called the !roductionsystem developed by the "apanese, but has gained popularity throughout the world.!roduction system means an organi#ation purchases materials and parts and producescomponents $ust when they are needed in the production process. %oods are not produced

    until it is time for them to be shipped to a customer. &any organi#ations adopt systems toreduce sources of manufacturing waste by producing the right part in the right place at theright time. The goal is to have minimum or #ero inventories, because holding inventory is anonvalueadded activity. The main goals of manufacturing system are reduce nonvalueadding activities, to increase the focus upon product quality throughout the production

    process, reduction of inventory level, space requirements, wasted materials, time and effort.!lants are design for maximi#ing efficiency which smoother production flow with fewerdisruptions. Improve the organi#ation's ability to compete with others and remain competitiveover the long run.

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    STUDY OF INDUSTRIAL SYSTEM AT CGL

    Chapter 2

    LITERATURE SURVEY

    (ikas )umar*+have stated that traditional view permits small but allowableamount of poor quality product in outgoing manufacturing goods. -n contrary, ased/uality &anagement doesn't allow poor quality products in any quantity by focusing thespecial attention on efforts to get high quality products in small lots. They have presented the

    basic principles of /uality &anagement such as high level of visibility on quality, strictproduct quality compliance, participation in control of product quality, selfcorrection of workergenerated defects, +001 quality inspection of products, routinemaintenance and house cleaning duties, continual quality improvement and longtermcommitment to quality control efforts. 2onsistent with these principles, 3ystems motivatesworkers to achieve product quality perfection.

    4e conducted a survey of Indian industries to find out the applicability of 3ystems inIndian context. The study reported that statistical quality control, statistical process controland work centred quality control can be easily implemented, but the goal of #ero defects isdifficult to achieve in Indian context. The survey also revealed that some benefits likeincreased quality, increased productivity, reduced inventories, improved competitive

    position, improved worker efficiency, increased flexibility, reduced production lead time,reduced purchase lots si#e and reduced work in process are highly expected systems benefitsin Indian context. They also stated that perfect system implementation is not possible in mostIndian industries due to lack of training, lack of resources, and non availability ofmultifunctional workers. Indian industries must implement system in phased manner. This

    will certainly make them more competitive.

    &ohammad Talha*5 stated that the "ustintime can make products become moreefficient, reliable and with a higher quality with its implementation. In accounting area, themanufacturing system minimi#es the amount of holding inventory in the warehouse. Thismeans that, all the production cost like direct costs, factory, overhead costs can be directlycounted into the cost of goods sold. esides this, most cost accounting systems areimplemented to determine the production costs in a budget way. ut when manufacturingsystems come across to accounting, the inventory costing system can be eliminated by theminimal inventory level at an optimal point in the system. The firm can reduce the inventorycosting system costs by improving the inventory control system. &oreover, the change in the

    accounting system also influences the financial statement of the firms. After adopting themanufacturing system, the inventory costing costs are eliminated and result in a lowinventory holding costs. All these factors increase the profit of the firm, result in moreattractive financial statement to the end users.

    3. 6. Adeyemi*7carried out a survey in one of the developing countries, 8igeria.Though hindrances do exist, the survey indicated that these hurdles could be overcome. The

    prerequisites in achieving successful implementation are management commitment,responsiveness to market tastes and that education and communication would be necessary toachieve general acceptance of a system. 2omplete adoption of various system wouldencourage local industries to diversify the excess inventory they might have ordered from

    abroad. 4ence, system will generate new ideas and ultimately new products.

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    STUDY OF INDUSTRIAL SYSTEM AT CGL

    Chapter 3

    DETAILS OF COMPANY

    CROMPTON GREAVES AN OVERVIEW

    3.1 RIEF !ISTORY

    A pioneering leader with almost 90 years of experience and expertise in themanagement and application of electric energy and noticeable presence in electronics andtelecom, 2%6 is extensively engaged in manufacturing and marketing operations, offering anincredible portfolio of products and services.

    uilding on its strong manufacturing and marketing roots, 2%6 has grown from asingle unit making A2 Industrial &otors and 2eiling :ans to a multidimensional corporationwith business interests in many product areas including transformers, motors, switch gears,control panel accessories, water pumps, electronic and telecom equipment's and services.With its 5; manufacturing plants countrywide marketing and support network, 2%6effectively provides value to its customer.

    In 1942 the Crompton Parkinson Ltd. Of England appointed Greaves CottonCompany in India as sales onessionaires of their prod!ts in India "hih "ereman!fat!red in England. In 19#$ Crompton Parkinson esta%lished CromptonParkinson &orks India Ltd. at &orli' (om%ay' man!fat!ring a range of eletrialand allied e)!ipment. In the same year a separate ompany in the name ofGreaves and Crompton Parkinson Ltd. &as formed "ith the o%*etive ofdistri%!tion and sales of prod!ts of Crompton Parkinson L+,' in India espeiallyin -o!th. +he Indianisation Proess started grad!ally from 194 on"ards. +heompany onsolidated its position in 19// "hen Greaves Cotton and CromptonParkinson amalgamated "ith Crompton Parkinson &orks 0India to form a ne"ompany Crompton Greaves Limited. s a res!lt of this' the om%ined ativitiesof man!fat!ring' distri%!tion and sales' installation' serviing and ontrating"ere %ro!ght !nder the ommon management of CGL.

    In +

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    STUDY OF INDUSTRIAL SYSTEM AT CGL

    2%Bs gross sales and income from services in :E50+7 stood at =3F 5.7 billion. Though a setof diversified and differentiated multinational, multiproduct and multisolutions enterprises,2rompton %reaves is unified by the philosophy of B-ne2%BGa cohesive entity that leveragesglobal best practices to interface with the different businesses and create customersatisfaction by offering superior products, solutions and services across the world.

    2% has three ma$or businessesH !ower 3ystems, Industrial 3ystems and 2onsumer !roducts.

    Cr"#pt"$ Grea%e& Lt(

    SE) *+++,3 - NSE) CROMPGREAV - ISIN) INE+/A+1+2,

    Mar0et

    Cap) R&.Cr. 413, - Fa5e Va67e) R&. 2

    I$(7&tr8) E6e5tr'5 E97'p#e$t

    Ah#e($a:ar P6a$t Pr";'6e

    2>-&!T-8 %>@A(@3 6I&IT@?, 6T &-T->3 ?I(I3I-8H I8?=3T>IA63E3T@&3 was established in the year +

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    STUDY OF INDUSTRIAL SYSTEM AT CGL

    2++3=2++> @nergy @xport !romotion 2ouncil @@!2C has certified and awarded the 4ighest

    @xporters Trophy in recognition of their outstanding contribution to engineeringexports during the period in the category of Turnkey Industrial !ro$ect8on33I. The

    total exports for the year was >s. +9.0; crores.2++>=2++*

    Awarded commendation certificate for a J3trong 2ommitment to 4> @xcellenceJ by

    the 2onfederation of Indian Industry, Western >egion. Amity 4> @xcellence Award for innovative strategies for 4uman >esource

    &anagement and ?evelopment in the year 5009.

    2++*=2++ 2ommendation certificate for K3ignificant Achievements in 4> @xcellenceL by the

    2onfederation of Indian Industry, Western >egion

    %old Award to the 39 M !ower /uality usiness and 3ilver to the 3witchgear2omplex and the :ans M Appliances ?ivision in the India &anufacturing @xcellenceAward 500D conducted by :rost M 3ullivan

    2++=2++/

    %reen Tech @nvironment @xcellence AwardH %old Award in @ngineering 3ector for

    -utstanding Achievement in @nvironment &anagement.

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    STUDY OF INDUSTRIAL SYSTEM AT CGL

    Chapter >

    ORGANI?ATION STRUCTURE

    &r. %autam Thapar is 2hairman M 2@- of IndiaBs foremost diversified corporation,the Avantha %roup.

    &r % Thapar, 2hairman M !romoter of 2% chairs the oard ofdirectors, which consists of eleven oard members. The 2hairman &r % Thapar isa non executive ?irector. &r 3& Trehan is the (ice 2hairman of the oard of?irectors in a 8on @xecutive capacity, &r 6aurent ?emortier is the 2@- M

    &anaging ?irector of 2%. &r 4ariharan is a 8on@xecutive ?irector.3even other ?irectors &r 3 Apte, ?r - %oswami, &r 3 6abroo, ?r 26ewiner, &s & !udum$ee, &r 3 !rabhu and ?r ( von &assow, are independent ?irectorsand professionals of International stature.

    /

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    Mr. GautamThapar Chairman

    and CEOMr. Vijay

    Lele Generalmanager

    Mr. Suryakant Agarkar

    Prod!tion 2ssistant General 4anager

    Mr. Narendra Jangam

    41 plant 4anager

    4r. -.-. 5agtap6,78LP LI6E

    2.4.

    4r.P.(hagvat

    PPC 2.4.

    4r.2.G.(adgas

    E9port LI6E2.4.

    4r.:ishramLele

    4aterial2.4.

    STUDY OF INDUSTRIAL SYSTEM AT CGL

    ORGANI?ATION C!ART

    Chapter *

    VARIOUS DEPARTMENTS

    +C !ersonnel &anagement ?epartment5C &arketing &anagement ?epartment7C :inance &anagement ?epartmentNC >esearch and development and design ?epartmentDC !roduction ?epartment9C /uality Assurance ?epartmentC &achinery 3hop ?epartment;C Tool >oom

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    STUDY OF INDUSTRIAL SYSTEM AT CGL

    Chapter

    MY ROLE IN T!E COMPANY

    I @a& @"r0'$: 7$(er Pr"(75t'"$ Ma$a:e#e$t Depart#e$t hea(e(

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    STUDY OF INDUSTRIAL SYSTEM AT CGL

    +. D3

    5. )A8A8

    7. )ai#en

    N. 6ean &anufacturing

    D. "ust in time "ITC

    1. *S

    D3 is short forH 3ort, 3et in -rder, 3hine, 3tandardi#e and 3ustain*S represents D disciplines for maintaining a visual workplace visual controls andinformation systemsC. These are foundational to )ai#en continuous improvementC and a

    manufacturing strategy based J6ean &anufacturingJ waste removingC concepts. D3 is one ofthe activities that will help ensure our company's survival.+. 3ort All unneeded tools, parts and supplies are removed from the area5. 3et in -rder A place for everything and everything is in its place7. 3hine The area is cleaned as the work is performedN. 3tandardi#e 2leaning and identification methods are consistently appliedD. 3ustain D3 is a habit and is continually improved also Work areas are safe and free ofha#ardous or dangerous conditions

    2. B'e$

    In the decade of +

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    STUDY OF INDUSTRIAL SYSTEM AT CGL

    approach addresses existing plants, products and processes. It is focused on eliminatingKwasteL anything that is not adding valueC. As waste is reduced, quality improves,

    production times are reduced and cost is minimi#ed. (arious methodologies are used as toolsto achieve this including (alue 3tream &apping, D3, )anban pull systemsC and error

    proofing.-ur view is that starting with Taylor's approach lets you establish the perfect world as a

    base line. =sing the "apanese approach then helps you work toward the perfect world. 6et'suse a casting example. A typical process might be to cast, clean, finish, reclean, machine andship. Why do we clean, finish and machineP We know these processes often can't beeliminated but why not tryP If the casting can be produced ascast either by achieving best

    practice methods or changing casting methods investment casting and lost foam oftenachieve ascast partsC, machining can be eliminated or minimi#ed. If you don't put the stockon you don't have to take it off. Why is finishing or at least why is so muchC requiredP Weknow a stateoftheart -@& producing iron castings in green sand that require almost nofinishing. Are you grindingQtrimming parting linesP Then your patterns or molds may need

    attention. Are you grinding rough casting surfacesP Then your sand is not right or your diecasting practices need improvement. %rinding gatesP 2an they be relocated to areas wherethey can be left untouched and minimi#ed using knife gatingP Are you weldingP If you arenot $oining parts in welding all you are doing is fixing mistakes. Why do you clean beforefinishingP %ood sand and shakeout practices should produce castings that are clean enoughfor finishing.

    N. IT CONCEPT

    What is the "ustInTime conceptP 3ince the emergence of this term it was difficult forsciences and business people to define it. @ven today many companies think that they are

    using "IT concept, but actually, they are not reali#ing that "IT must be integrated in companyphilosophy and no $ust dead letters. "ust in Time "ITC production is a manufacturingphilosophy which eliminates waste associated with time, labor, and storage space. asics ofthe concept are that the company produces only what is needed, when it is needed and in thequantity that is needed. The company produces only what the customer requests, to actualorders, not to forecast."IT can also be defined as producing the necessary units, with therequired quality, in the necessary quantities, at the last safe moment. It means that companycan manage with their own resources and allocate them very easily. :igure shows a drawingof the "IT concept.

    D. )A8A8

    What )anbans AreH)anban is "apanese for sign or designated place. It is used in manufacturing tomean a visual signal that tells when it is time to get or make more of something.

    What )anbans ?oHR 2ontrols the amounts of raw material amounts and of material in Work In !rocessR 3mooths out flow, if si#ed properlyR Tells when and where there is a problem in the processR Assures there is always $ust enough material on hand to make what is needed

    Types -f )anbansHR >aw &aterial )anban O tells suppliers when to send how much of a particular item to

    1;

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    STUDY OF INDUSTRIAL SYSTEM AT CGL

    a particular place.R In!rocess )anban O determines the amount of WI! Work In !rocessC that can be

    kept between any two operations in a processR :inished %oods )anban O determines the amount of a product to be kept on hand at

    any given time. >emoval of material from the :inished %oods )anban acts as asignal for more of that product to be manufactured.

    Types -f )anban 3ignalsHR A calculated amount of material kept in a designated space, such as a bin or between

    lines on a workbench or on the floorR A card that is used to tell the amount of material to be made or orderedR The markings on a bin that determine when more material needs to be ordered or

    madeR Any other clear visual signal that indicates it is time to get more material

    4ow )anbans WorkH&aterial >esupply )anbanH

    +. All of the parts used to manufacture a particular product are identified as well as thenumber used in each product.

    5. 6ead time is calculated, that is the amount of time it takes for the parts to be orderedand delivered.

    7. The demand for the product over a specific length of time is then determined.N. The number of parts used in the product is multiplied by the number of the products

    demanded over the length of time that it takes to order and receive the parts.

    Cr"#pt"$ Grea%e&

    Pare$t C"#pa$8 A%a$tha Gr"7p

    Cate:"r8 @lectrical @quipment

    Se5t"r @nergy !ower and Industrial @quipment

    11

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    STUDY OF INDUSTRIAL SYSTEM AT CGL

    Chapter /

    SWOT Analysis

    1. Strength

    1. &ide prod!t range to provide end to end sol!tions to !stomers arossvario!s segments2. a*or presene in domesti po"er market and "ide installede)!ipment7!stomer %ase

    #. Prompt after sales servie' good !nderstanding of markets onditionsand geographially "ide spread4. -igni

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    STUDY OF INDUSTRIAL SYSTEM AT CGL

    1. -hneider Eletri2. =avells#. ((

    Chapter

    Lear$'$:&

    =nderstood of functions and system of the operation management at the &+ plant

    production department.

    ?eveloped an understanding towards quality control processes including /2 tools,

    D3, kai#en, )A8A8, "IT.

    14

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    STUDY OF INDUSTRIAL SYSTEM AT CGL

    ILIOGRAP!Y

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    STUDY OF INDUSTRIAL SYSTEM AT CGL

    1/