Dr. N. Ravichandran

Lean Summit - 2014

By Dr. N. Ravichandran Executive Director

Lucas – TVS, Padi, Chennai - 600050

Presentation on

Striving Excellence

Through Engaged Employee

1

Dr. N. Ravichandran

Contents

1. Introduction to the Organisation

2. Changing Business Scenario

3. Our Lean Journey

3.1 Lean Journey Phase – I : 1985 – 1992

3.2 Lean Journey Phase – 2 : 1992 – 1998

3.3 Lean Journey Phase – 3 : 1998 – 2004

3.4 Lean Journey Phase – 4 : 2004 – 2012

3.5 Lean Journey Phase – 5 : 2012 - ……..

4. Process of Building Will & Skill

5. Results at a Glance

6. Conclusion

2

Dr. N. Ravichandran

1.0 Introduction To The Organisation

3

Dr. N. Ravichandran

6 Billion USD

100 years in the business of vehicle dealership spanning parts

distribution, parts manufacturing and two wheelers

manufacturing

Culture of customer commitment and employee involvement

Pioneer in Quality and Productivity movement in India

Two companies have won Deming Grand prize (former JQM),

three companies have won Deming Application Prize

1.1 Profile of TVS Group

TVS Group core value is “Trust, Value and Service” A century of service to the growth and development of the Indian Auto industry

• Lucas - TVS

• Sundaram

Clayton

• Wheels India

• Sundram

Fasteners

• Lucas-TVS

• TVS Motors

• Sundaram

Brake Linings

• Brakes India

Foundry

4

Dr. N. Ravichandran

India‘s largest manufacturer of Auto electrical products with

four out of five vehicles plying in India using its products

Market leaders for over 50 years in India

Serves Global and Indian customers in competition with

global suppliers (Denso/Bosch/Valeo)

Specialises in high variety and low volume production

Manufactures 5 million Starters & Alternators, 3 million Two

wheeler starters, 3 million Wiper motors and Small motors

annually.

Alternators Starters Wiper motor and systems

Passenger Cars

Utility

Vehicles

Commercial vehicles

Tractors

Off highway

Two wheelers

Only company to service all market segments in India

Major Products

Applications

1.2 Profile of Lucas – TVS

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Dr. N. Ravichandran

Indian Companies Global Companies

1.3 Customer Base

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Dr. N. Ravichandran

NORTH (2)

WEST (1)

SOUTH (3)

Padi Plant MM Nagar plant

Chakan Plant

Rewari Plant

Pant Nagar Plant

Puducherry Plants

All the six plants located closer to Auto cluster

1.4 Lucas – TVS Plants

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Dr. N. Ravichandran

2.0 Changing Business Scenario

8

Dr. N. Ravichandran

2.1 Forces Creating Waves of Environmental Change

9

Dr. N. Ravichandran

2.2 Competitiveness in the Global Business Environment

• Fast changing Business Environment is

characteristic of 21st Century.

• Rapid pace of Globalisation & Technological

progress have changed market conditions &

competitive strength.

• Business potential depends on Quality, Speed,

Technical superiority, Service and Product

differentiation.

10

Dr. N. Ravichandran

2.3 The Changing Business Environment Globalization Rise of the information economy

• Management and control in a global

marketplace

• Competition in world markets

• Global workgroups

• Global delivery systems

• Knowledge- and information-based

economies

• New products and services

• Knowledge as a central productive and

strategic asset

• Time-based competition

• Shorter product life

• Turbulent environment

• Limited employee knowledge base

Emergence of the digital firm Internet growth and technology convergence

• Digitally enabled relationships with customers,

suppliers, and employees

• Core business processes accomplished using

digital networks

• New business technologies with favourable

costs

• E-business, e-commerce, and e-government

• Rapid changes in markets and market

structure

• Increased obsolescence of traditional

business models

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Dr. N. Ravichandran

2.4 Transformation of the Business Enterprise

• Flattening

• Decentralization

• Flexibility

• Location independence

• Low transaction and coordination costs

• Empowerment

• Collaborative work and teamwork

12

Speed

Dr. N. Ravichandran

3.0 Our Lean Journey

13

Dr. N. Ravichandran

1963

1984

1986

1993

1995

1997

1999

2001

2002

2004

2006

2007

2012

2015

2017

Lean Phase

3.1 LEAN JOURNEY PHASE – I : 1985 – 1992

14

Chief executing

meeting

employees in

small groups

Formation of

Product Units

with Task

Force

MUL

Operations

in India

SGA

Dr. N. Ravichandran

Key directions for changes in 1985…..

Product

development

capability

World class

manufacturing

capabilities

Total employee

involvement

OPENING UP OF ECONOMY

15

Dr. N. Ravichandran

1985-86

Visionaries' telescopic view of future..........

Mr T K BALAJI - CMD Mr R D FLINT - JMD

• Advent of MUL

• CE addressed all employees in small groups of 50 each for 52 weeks

16

Dr. N. Ravichandran

Scenario in 1985

• High variety

• Low volume

• World class competition

• Need to improve product quality

• Non-competitive international prices

• Lack of quick response to customers

• Some outdated products (26% of total turnover)

17

Dr. N. Ravichandran

Our Journey………….

TRADITIONAL MANUFACTURING

Accumulating

Inventories

Waiting for material to

work on

Machine

Breakdown Looking for

Tools

Parts Shortage

Defects

Rework

18

Dr. N. Ravichandran

We realised that to be a winner in 21st Century,

Organisations have to be, • Global

• Innovative

• Networked

• Time based

• Vision directed

• Customer driven

• Flat and empowered

• Flexible and adaptive

• Total quality - focused

• Information technology based

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Dr. N. Ravichandran

Our Journey………….

PHASE – I (1985 – 92)

• Process to Product Layout

• Operator responsible for Quality

• De-centralisation of Functions

• Nagare Experiments

• Product Quality Improved

• Containerisation

• Improved Response to Customers

3

2

1

KANBAN

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Dr. N. Ravichandran

Factory layout Block diagram

DY

NA

MO

UN

IT

PR

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NG

AG

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TA

RT

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CA

R S

TA

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UN

IT

WIP

ER

BU

SIN

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TOOL ROOM

CUST.

DESPATCH

CENTRE

ALT

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NIT

AX

IAL S

TA

RT

ER

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DIS

TR

IBU

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BU

SIN

ES

S U

NIT

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Dr. N. Ravichandran

Organization of Manufacturing

Work Station

Moduleeg. Yoke Module

Uniteg.

DBU

FactoryOrganisation ,

Supplier etc.

Celleg.Drive Work Station

Cell

Module

Unit

Factory

A

L

T

E

R

N

A

T

O

R

C

O

M

M

S

T

A

R

T

E

R

C

A

R

S

T

A

R

T

E

R

W

I

P

E

R

T

O

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L

R

O

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E

N

T

R

A

L

W

E

D

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N

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Y

P

L

A

NT

R

E

W

A

R

I

P

L

A

N

T

P(O)

PADI PLANT

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Dr. N. Ravichandran

1963

1984

1986

1993

1995

1997

1999

Nagare Cells

Formation

SPF

Formation

Material Flow

Management

QS 9000

SGA Lean Phase

Chief executing

meeting

employees in

small groups

Formation of

Product Units

with Task Force

3.2 Lean Journey Phase – 2 : 1992 – 1998

23

MUL

Operations

in India

Dr. N. Ravichandran

Hirano Arrives

24

COST = PRICE + PROFIT

Continuous

pressure to reduce

( by DFA,DFM, Flow

process analysis )

Market expects

decreasing prices

(Year on Year)

Stakeholders

require increasing

returns

• Waste elimination

• Process Improvement

• Discipline/Configuration

• Measure of Performance

• Team work – Trained via Five Star programme

OPERATING ROUTES

Fundamentally review and agree customer requirements for a specific product

Define the complete process for a specific product

Move towards continuous single piece flow

Balance flow , effective use of resources

Continuously improve by rigorously attacking waste

Guiding Principles

Delivering Customer Value (QCDS)

Dr. N. Ravichandran

STEP-1 Awareness revolution:

prerequisite for Factory Improvement

STEP-2 The 5S for Factory Improvement

STEP-4 Levelling

STEP-3 Flow Manufacturing

Fle

xib

le M

an

po

we

r

Change Over

Quality assurance

Kanban

STEP-5 Standardised operations

JUST IN TIME

Maintenance and Safety

Our Journey Towards Manufacturing Excellence

Multi -process

Operations

Autonomation Jidoka

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Dr. N. Ravichandran

Kanban

E- Kanban [2- Bin system]

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Dr. N. Ravichandran

Quality Assurance

QUALITY

OBJECTIVE TECHNIQUES EXAMPLE

ZED-Q ON-LINE QC

• MAKER

CONTROL

• Cpk

• SPC

• MEASURED ‘Q’

• POKA YOKE

• TOOL MGT

• SOP

• DWM

TOOL MGT

QS9000 POKAYOKE

Our Quality Approach

27

Dr. N. Ravichandran

Fle

xib

le M

an

po

wer 1985 - 95

1963 - 85

1995 - 2002

2002 - 05

Inflexible

Manpower One man – One machine

•Process type

Layout

•Product type

Layout

•Nagare Cells

Partially Flexible

Manpower One man – 3 Machines

• SPF Lines

• Linking Cells

Totally Flexible

Manpower – All Functions

• Large Cells

• Chaku-Chaku

• Kanban

Flexible

Manpower – BUs

28

Dr. N. Ravichandran

1963

1984

1986

1993

1995

1997

1999

2001

2002

2004

2006

2007

2012

2015

2017

Chief executing

meeting

employees in

small groups

Formation of

Product Units

with Task

Force

Nagare Cells

Formation

SPF

Formation

Material Flow

Management

•Concurrent Engineering

• Structured design review

Integration of

island cells to

Large cells

ZED Q TQM

• DWM

•5S

•PFD/SWP

•TPM

•Poka Yoke

QS 9000

Various

Customer

Awards

•NPD Process

Standardisation

• Zero defect design

ISO 14001

TS 16949

JIT Grand

Prize

DMING

application

prize

SGA TQM / Green Phase Lean Phase

29

3.3 Lean Journey Phase – 3 : 1998 – 2004

MUL

Operations

in India

Dr. N. Ravichandran

TQM Promotion

TQM Consolidation 1 1998 - 2004

2004 - 2007

ISO / TQM Initiation

1993 - 1998

TQM Journey

•QC Circles

•QS 9000

Lucas – TVS has grown faster after adopting TQM way

with CAGR from 10 % to 16 %

•SOP, Policy deployment

•Structured NPD process

•Deming Application Prize

•Development of in-house IT systems

•Enhancing use of statistical tools

•OHSAS 18001

30

Dr. N. Ravichandran

1963

1984

1986

1993

1995

1997

1999

2001

2002

2004

2006

2007

2012 2015

2017

Chief executing

meeting

employees in

small groups

Formation of

Product Units

with Task

Force

Nagare Cells

Formation

SPF

Formation

Material Flow

Management

•Concurrent Engineering

• Structured design review

Integration of

island cells to

Large cells

ZED Q TQM

• DWM

•5S

•PFD/SWP

•TPM

•Poka Yoke

QS 9000

Various

Customer

Awards

•NPD Process

Standardisation

• Zero defect design

ISO 14001

TS 16949

JIT Grand

Prize

DMING

application

prize

• QFD

• Tech Mapping

•Reliability

engg

SGA TQM / Green Phase

DEMING

GRAND PRIZE

Lean Phase

Digital

Manufacturing

Next Generation

Manufacturing

3.5 Lean Journey Phase – 5 : 2012 - …..

31

MUL

Operations in

India

EnMS

Dr. N. Ravichandran

TQM Promotion

TQM Consolidation 1

TQM Consolidation 2

TQM Maturity

1998 - 2004

2004 - 2007

2007 - 2012

2012 …

ISO / TQM Initiation

1993 - 1998

•QC Circles

•QS 9000

•SOP, Policy deployment

•Structured NPD process

•Deming Application Prize

•Development of in-house IT systems

•Enhancing use of statistical tools

•OHSAS 18001

•Addressing diagnosis audit guidelines

•Setting up Advanced engineering centre

•Training of engineers on advanced statistical tools

•Deming Grand Prize (2012)

•Integrated NPD with customers’ NPD program

•Reliability engineering

•Spreading TQM culture to supply chain

TQM Journey

Lucas – TVS has grown faster after adopting TQM way

with CAGR from 10 % to 16 %

32

Dr. N. Ravichandran

Team

Work Input Schedule

Value Added

Output

• WIP• Quality• Cost• Lead Time• Schedule

Achievement• Critical success

Factors

MO

Ps

High QualityHigh Productivity

No MudaFlexible Production

SOP

SINGLE PART FEEDING

POKA-YOKE

TOOL MANAGEMENT

ONLINE SYSTEM INTEGRATION

DYNAMIC MONITORING

SPC AUDIO ALERT

MACHINE ON WHEELS

SMED CHAKU-CHAKUAUTONOMOUS MAINTENANCE

14 Principles

TOOL LIFE MONITORING

SAFETY

Zero Delays

Zero Changeover

Zero Defects

Zero Breakdowns

Zero Inventory

Zero Waste

Zero Injury

7 Zero Philosophy

Lucas – TVS Manufacturing Systems (LTMS)

High Quality, high productivity, Muda reduction and Flexibility

33

Dr. N. Ravichandran

Principle Purpose

1 Machine on

Wheels Flexible layouts

2 Single part

feeding Defect prevention

3 Tool

Management Easy traceability

4 SMED Quick setups

5 Tool life

monitoring Improve quality

6 Poka yoke Defect prevention

7 SPC Process

monitoring

Principle Purpose

1 Machine on

Wheels Flexible layouts

2 Single part

feeding Defect prevention

3 Tool

Management Easy traceability

4 SMED Quick setups

5 Tool life

monitoring Improve quality

6 Poka yoke Defect prevention

7 SPC Process

monitoring

Principle Purpose

8 Autonomous

Maintenance

Improve m/c

availability

9 Chaku Chaku Cycle time

reduction

10 Safety Healthy

Environment

11 Online

integration Defect Prevention

12 Dynamic

monitoring

Improve cell

efficiency

13 Audio alerts Defects detection

14 SOP Operational

consistency

Principle Purpose

8 Autonomous

Maintenance

Improve m/c

availability

9 Chaku Chaku Cycle time

reduction

10 Safety Healthy

Environment

11 Online

integration Defect Prevention

12 Dynamic

monitoring

Improve cell

efficiency

13 Audio alerts Defects detection

14 SOP Operational

consistency

14 Principles of LTMS

34

Dr. N. Ravichandran

4.0 Process of Building Will & Skill

35

Dr. N. Ravichandran

Achieving “balance” among three drivers is absolutely critical

4.1 Three Key Drivers for an Organization

Process

Technology

People

36

Dr. N. Ravichandran

4.2 What makes the difference

Organisation People

Resulting in

37

Dr. N. Ravichandran

4.3 People and Process

Empowerment training

QC Circles

Suggestion programs

Kaizen Events

Rewards and recognition

Employee development

Employees as citizens

Standard Work/Kaizen

JIT/ JIDOKA

A3/ VSM/ HoshinKanri

Pull based authority

Improvement &

Engagement

People Management

& Development

Process design or

Design of the work

38

Dr. N. Ravichandran

4.4 Advanced Manufacturing Competency Model

Personal Effectiveness Competencies

Academic Competencies

Workplace Competencies

Technical Competencies

Management Competencies

39

Dr. N. Ravichandran

Human Development

System

4.5 Lucas-TVS Culture and Policy

40

Human Resource

development cycle

Reflect on the next cycle

HRD Plans

Review HRD plans or methods

Formulate plans for OJT,

OFF OJT

Process results of HRD

Implement Human

development

Evaluate results through Feedback & interviews

Implement OJT, OFF OJT and other training programs

PLAN

DO CHECK

ACT

A System to help

implement rules for

Human resource

development

through PCs on a

PDCA cycle

• Clear evaluation

of results

• Grasp ongoing

HRD programmes

• Create database

to monitor the

progress

Dr. N. Ravichandran

4.5 Lucas-TVS Culture and Policy

This is a Bonding Process , Continuous Exercise

Driven by Trust and Good Will, not by Contractual Relationship

Culture is built on

HR Policy :

To assist every Employee

to upgrade their Skill

to perform their task

in a manner to achieve Customer Satisfaction through Continuous

improvement

REACH TEACH

CARE

SHARE

41

Dr. N. Ravichandran

4.6 Training and Competency Development

42

Design Competencies Small Motors design, Wiper Blade design, High Efficiency Alternator design, Higher order

electronic design capabilities, , Brushless Motor, Industrial Embedded System.

Manufacturing

Process

Competencies

High slot Fill Stator Winding design, High Precision Lamination process designing capability,

Non-hazardous plating / coating Technologies, Assembly automation, Special Purpose Machine

Tool building (Hard Turning Computerised Test Rigs).

Methodology & Tools Manufacturing Management (LTMS), Project Management, Statistical Tools, Negotiation Skills,

Funds Management Skills, VA / VE implementation.

Special IT

Competencies

Design competencies for TIBCO products, Java platforms, Dot net platforms, Oracle database,

Networking skills, cloud computing and virtualization.

S.No Skill

Employee Basic Skill Functional Skill /Competency

1 Operator

1. ‘5’ S

2. EHS Practice

3. SOP adherence

4. Kaizen skill

1. Soldering

2. Varnishing

3. CNC

4. Cylindrical Grinding

2 Executive 1. New 7 QC Tools

2. EHS Practice

1. 3D modeling

2. PLC programming

3. Negotiation skills for marketing

4. DOE

Dr. N. Ravichandran

4.7 HRM – Prime Activities

Customer Orientation (Both Internal / External)

Clarity of Role / Responsibility of people

Policy Deployment to align all functions (Team Work)

Raising the Skill level of Employees

Promotion of Creativity through structured ‘Total Employee Involvement’

Processes

Quality in all processes

Continuous Improvement

43

Dr. N. Ravichandran

4.8 Total Employee Involvement

We provide opportunities to employees to use their creativity

and involve them in improvement activities.

Forums available are :

Small Group Activity (QCC) - Operators

Quality Improvement Team - Engineers / Officers

Voluntary Work Team - Operators, Engineers, Officers

Suggestion Scheme - Individual Operators

Post-TQM status - Improvements in

SGA (QCC) - More No. of Circles

Quality Improvement Team - Structured method

Voluntary Work Team - Unique and a New Initiative

Suggestion Scheme - High level of participation

44

Dr. N. Ravichandran

4.9 TEI - Promotional Activities

Top management involvement in presentation

All round communication

Prompt processing of projects/ suggestions

Publicity through display of photographs, coverage in house magazine

Opportunity to share knowledge with other companies

Rewards, continuous training on QC tools, QC Story

Nominations for State, Regional , National and International conventions

45

Dr. N. Ravichandran

4.10 TEI - Promotional Activities

Employees participate in SGA and Suggestion schemes and bring in lot of improvements

Lucas TVS teams awarded at ICQCC-2007 in China

46

Suggestions = 20162 Total Teams = 225

Improvement activities done thru Kaizens, Suggestions, SGA and VWT (Last 10 Years)

Kaizen = 7500 SGA = 5482 Voluntary work team

= 22000

Dr. N. Ravichandran

4.11 Communications

Title of Communication Type For Whom Frequency

Inspire In-House News Letter All Employees Quarterly

Knowledge Net Email – News Letter Management Staff Monthly

SHE Mail Email – News Letter Management Staff Monthly

Circular Notice All Employees As required

Current Events News paper cutting All Employees As required

Meeting Address by MD All Employees Yearly

Founder’s Day Celebration All Employees Yearly

Republic Day Celebration All Employees Yearly

SGA Convention All Employees Yearly

Insertion in Pay cover Monthly News All Employees Monthly

Circular Industry Trend and Business Performance All Employees Quarterly

47

Dr. N. Ravichandran

4.12 Motivation (Involvement, Engagement & Family)

Contribution to Employee’s family and Society

• As a good corporate citizen, the company promotes CSR activities and sustains bondage

• with the society.

Family’s welfare

• Medical policy’s scope is enlarged to family members.

• Family relief fund extended to family members.

• Master health checkup for employees’ spouses is introduced.

• Pre-Retirement counseling sessions are organised on Health and Financial planning.

48

Dr. N. Ravichandran

4.13 Sunday Voluntary Work Team

49

Dr. N. Ravichandran

1) Industry Institute interaction

• Lucas-TVS has been constantly improving this initiative

to benefit students and institution.

• Close Interaction with Premier Institutes across India

(IIT’s, Anna University and SASTRA University)

• Top Executives are members in various academic

councils

2) Education

• Support to education of ‘Underprivileged’ is

continuously extended.

• Academic institutions like CPAT-TVS, Manjakkudi Arts

and Science college are continuously supported.

• National centre for industrial harmony (NCIH), a centre

for propagating and training on industrial harmony, is

duly supported.

4.14 Corporate Social Responsibility

50

Dr. N. Ravichandran

4.15 Corporate Social Responsibility

ED at Lal Bahadur Shastri National Academy of

Administration, Mussoorie addressing senior

members. A TQM Program Organised by the

Government of India

Address to students by ED of

Lucas - TVS on TQM at Anna University – TVS

Center (AU-TVS)

51

Dr. N. Ravichandran

4.16 Corporate Social Responsibility 1) Contribution to employee’s family

welfare

• Educational scholarship

• Medical benefits

• Family day Function and celebrations

• Employee’s children summer camps

2) Health

• Master health check up for temporary

workmen and their family

• Medical camps for local public

• Support to poor and needy

• Provision of civic amenities

3) Relief measure

• Contribution to government relief fund for

rehabilitation

• Helping the poor affected by recent

Tsunami and cyclones

Harmony with the Society, Bonding Relationship

52

Dr. N. Ravichandran

5.0 Results at a glance

53

Dr. N. Ravichandran

210

35 62 2.4 (16 ppm)

40 61 12

Benefits achieved so far in Lucas-TVS [Base 2002]

258

100

Index

[2013-2014 Results ] 54

Increase

Decrease

Dr. N. Ravichandran

Deming Application & Grand prize

Mr Hiroshi Okuda, Chairman, Toyota Motor Company, presenting the

Deming Application Prize to Mr T K Balaji, Chief Executive and Managing

Director, Lucas-TVS Limited, Padi, Chennai 600 050, on Tuesday, 9th

November 2004, at the Keidanren Kaikan Building in Tokyo, Japan.

55

Demin Application Prize - 2004

- 2012

Dr. N. Ravichandran

6.0 Conclusion

56

Dr. N. Ravichandran

We Need a Mind Change

Move From Screen to Scene

Touching

Key board

Mouse

Mobile

Touch & Feel

People

Product

Process & Customer To

(Especially for manufacturing industry)

57

Dr. N. Ravichandran

Cultural Change

A/C Culture AC Achievement Culture

PC Culture PC Performance Culture

Information carrier Culture IC Improvement Culture

Argument Culture AC Alignment Culture

Cell Culture (Cell Phone) CC Cell Culture (Natural Group)

Talk Culture TC Target Culture

Fault Culture FC Focus Culture

Defect Culture DC Distinction Culture

Waste Culture WC Wealth Culture

58

Dr. N. Ravichandran

Vision without action is merely a dream.

Action without vision passes the time.

Vision with action can change the world .

59

Dr. N. Ravichandran 60

Dr. N. Ravichandran

Thank You

61