subros : an update · national workshop on “enabling msme to be competitive through quality...
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National Workshop on “Enabling MSME to be Competitive through Quality Tools”
1
© Subros Limited. All rights reserved
Subros : An Update
© Subros Limited. All rights reserved
Subros : An Update
Established in 1985, Subros is the Largest AC company in India. A Joint Venture company between Suri group, Suzuki and Denso.
Noida Plant Tool RoomR&D Center
Manesar Plant Pune Plant
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
OHSAS 18001
Sanand Plant (2012)
Future Plants
Chennai (Oragadam) Plant (2012)
© Subros Limited. All rights reserved
100
20,000*
3,0318,000*
4,50023,5667,000Building (Sq Mtr.)
40,00016,0008,94038,68811,840Land
(Sq Mtr.)
ChennaiSanand
Tool RoomNoida
Compr / HX
Noida
R&DPlants
Facilities
71,910
133,066*
212,348
Existing New Total
22,517
47,500*
39,940
Manesar
11,196
22,500*
55,940
Pune
Engineering & Development Centres :Denso Subros Engineering Services Centre ( Design JV ) - NoidaCentral R&D – NoidaProduct Engg Centres – Pune, Chennai
Plant wise Product Profile :Noida – Compressors, RS Evaporators, PDC, Precision Press Shop, Tool roomManesar – Car ACsPune – Car / CV ACs, ECM productsChennai – Car / CV ACs, ECM products, Off Road ECM / ACs, Bus AC, Truck Refrigeration
© Subros Limited. All rights reserved
Product Range
Bus A/C
Future Products RangeExisting Products Range
Compressors
Condenser
HVACs & Evaporator
Hose & Tubes
Car Aircon Systems Engine Cooling Systems
Oil Coolers, CAC
Rail A/C
Truck A/c
Cooling module
Commercial Vehicle ACs
© Subros Limited. All rights reserved
Subros customers
© Subros Limited. All rights reserved
Compressor Endurance
Testing Machine
Injection Molding Machine
CNC Tube Bender
Compressor blocks machining line
Vacuum Brazing Furnace for Evaporators
Condenser CoreAssembly Line
No clok Brazing Furnace for Condenser
Squeeze & Vacuum Die Casting Machine
Chip less Cutting MachineFor Aluminum Tubes
Robotic Vision Inspection
Manufacturing Infrastructure
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
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Vibration Testing
Calorimeter
CAE
Environment Test Chamber
CNC Machines
Wire EDM
Product Development Infrastructure: R&D / Tool Room
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Technology & Business Solution at Subros
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Our People, Our Strength
Training Session on Shop floor
Skill workshop with support from DNJP Skill workshop in progress
Chairman & Senior Management Team
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Achievements
Top ScorerMACE Audit
2011~12
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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
367 393467 506
619747
8951025
1336
500 500
750 750
1200
1500
1000 1000
2000
58905649
64746627 6947
9055
10891
14204
22422
0
500
1000
1500
2000
2500
2004‐05 2005‐06 2006‐07 2007‐08 2008‐09 2009‐10 2010‐11 2011‐12 2014‐15
No. of Unit (,000)
0
5000
10000
15000
20000
25000
Net Sa
les Value ( Rs. M
illion)
Sales Volume HVAC Bas is (no. in K)
Capacity ‐ 3 Shift Bas is (no. in K)
Net Sales Va lue (Rs . Mil l ion)
Projected
Capacity Plan to Meet Future Customer Demand
Indian Market Share - 40%
© Subros Limited. All rights reserved
Tier 2 Up - gradation
Subros Journey in
‘Pursuit of Perfection'
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
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Subros Defects Trend at MUL Line
Major Concer
n
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In House PPM Trend
Major Concer
n
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Background
Between 2004-2011 Subros has madetremendous effort to improve Quality.
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Trend of Customer Complaints
48
714 17 16
6
14
615
0
10
20
30
40
50
60
03~04 04~05 05~06 06~07 07~08 08~09 09~10 10~11 11~12(till
date)
Nu
mb
er o
f D
efec
ts /
Yea
r
YEAR
GO
OD
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41951
15613
102819507
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
PPM 03~04 PPM 09~10 PPM 10~11 PPM 11~12 (UptoDec' 11)
In-house PPM Trend
PP
M
YEAR
GO
OD
© Subros Limited. All rights reserved
Background
Between 2004-2011 Subros has madetremendous effort to improve Quality.
Analysis shows - 50~60% problem isfrom sub-vendors.
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
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Defects Distribution
In-house43%
Vendor Parts57%
Year 02~04
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Background
Between 2004-2011 Subros has made tremendouseffort to improve Quality.
Analysis shows - 50~60% problem is from sub-vendors.
Sustenance of Quality Improvement not feasiblewithout improving the complete supply chain.
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Subros Vision 2015 for TIER 2
Strong supplier capability with self sustained quality systems and overall excellence.
Replicate the OEM experience of Tier-1 vendor up-gradation to Tier-2.
Entire Supplier Base move towards ‘Manufacturing Excellence’ along with Subros through Systems Up gradation.
Vendor end PPM at Subros end = Max 50 PPM.
All vendors to be TS-16949 Certified.
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SCMEfficiency Responsiveness
Demand Chain Management
Subros Limited
LOGISTICS
FACILITIES
INVENTORY
Optimum Inventory
DedicatedFacilities
Efficient transportation
Improvement Targets - Tier 2 Development
QUALITY
COMMUNICATION
Faster & Effective
Communication
ZERO DEFECT
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Cluster Improvement
Activity
Plan
Act
Che
ck
Do
Assess situation Set Targets
Teach & Impart Subros learning in quality Journey to extended partners
Review Meetingswith Suppliers
Focused Improvement Activities
Approach
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72468 67132
0
6000
12000
18000
24000
30000
Rej
. (P
PM
)
(Cumm. Apr'02-Mar'03) (Cumm. Apr'03-Mar'04)
History – Vendor Parts PPM Trend
High Vendor Receipt PPM
at Subros end.
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
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87
96
0
10203040
5060
7080
90100
110
No.
of
def
ects
(Cumm. defects, Apr'02-Mar'03)
(Cumm. defects, Apr'03-Mar'04)
Abnormally High Vendor Defects at
Subros end.
History – Vendor Parts Defect Trend
© Subros Limited. All rights reserved
99
67
0102030405060708090
100110120
No.
of
del
iver
y fa
ilu
res
(Cumm. delivery failure,Apr'02-Mar'03)
(Cumm. delivery failure,Apr'03-Mar'04)
Production Downtime / Frequent Line
Stoppages at Subros end due to High nos. of
Delivery Issues.
History – Vendor Parts Delivery Trend
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Control Plan Not Followed
11%
Vendor Inspection process NG
11%
Process fool proofing NA
6% Set up pc. Mixup32%
Tool Condition NG6%
Improper Handling
6%
Work Instruction
Not followed22%
Inspection Gauge NA
6%
Vendor parts defect stratification
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Non-adherence to Existing Systems
26%
Sporadic Issues16%
System Gaps58%
Vendor Parts Defects Distribution
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ClusterImprovement
Activity
Plan
Act
Che
ck
Do
Assess situation Set Targets
Teach & Impart Subros learning in quality Journey to extended partners
Review Meetingswith Suppliers
Focused Improvement Activities
Approach
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Vendor Targets
GO
OD
2007-112007-112004-07 2011~12
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
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GO
OD
Vendor Targets
2007-112004~07
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GO
OD
Vendor Targets
2007-11
500
2007-112004~07
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GO
OD
Vendor Targets
2007-112004~07
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Cluster Improvement
Activity
Plan
Act
Che
ck
Do
Assess situation Set Targets
Teach & Impart Subros learning in quality Journey to extended partners
Review Meetingswith Suppliers
Focused Improvement Activities
Approach
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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.
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Back Bone of Cluster Activity
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
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Quality Improvement Activities
Initiative• MACE Cluster-1
Launched
InitiativeTrainings & Execution of
Projects at Vendor Cluster Members
Initiative
SSIG Activity Launched
InitiativeSystem Up gradation to
ISO/TS 16949• MACE Cluster-2 Launched
Initiative• Design Specification Joint
Review with Tier 2.• Tool Design Review.• Joint Tool Maintenance
2004~05
2005~07
2007~08
2009~10
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S.NO. VENDOR LOCATION
1 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
8 NRB BEARINGS LTD. JALNA / THANE
List of Cluster-1 Vendors Total : 8 Vendors
Criticality of Parts Supplied
Quality Performance at Subros
Business
Volume
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Quality Improvement Activities
Phase 1
Phase 2
Phase 3
Fundamentals & Trainings
Execution of Projects
Bench Marking
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1. Customer Satisfaction Report
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
Phase-1 (2005-06) Phase-2 (2006~07) Phase-3 (2007~09)
1. Complete 5 S implementation
2. Lean Manufacturing
3. Gemba Kaizen
4. Deep Analysis
5. Energy Cost Monitoring
6. Cost of Poor Quality
Activity Plan
1. Cluster – 2 Launched
2. Lean Manufacturing
Horizontal Deployment
3. Tool Maintenance
4. External Participation in
Cluster Competitions.
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Customer Satisfaction ReportM/s NRB Bearings Ltd.
S#
Control Parameter
2009-10(Cumm)
Apr-09 May-09
Jun-09 Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
2009-10 TARGET
1 Rejection at Subros
PPM 7132 0 0 0 0 0 500
2 Defect noted at Subros
Nos 3 1 1 0 1 0 0 0 2
3 Supplier Quality Rating
0-100 Scale
37 50 50 60 0 40 10 40 >=90
4 Delivery not as per schedule
No of times
0 0 0 0 0 0 0 0 0
5 Any other concern of customer
0 0 0 0 0 0 0 0 0
6 Subros Satisfaction Index
0-10 Scale
>=9
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Monthly Quality Feedback – Tier 2
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
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1. Customer Satisfaction Report
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
Phase-1 (2005-06) Phase-2 (2006~07) Phase-3 (2007~09)
1. Complete 5 S implementation
2. Lean Manufacturing
3. Gemba Kaizen
4. Deep Analysis
5. Energy Cost Monitoring
6. Cost of Poor Quality
Activity Plan
1. Cluster – 2 Launched
2. Lean Manufacturing
Horizontal Deployment
3. Tool Maintenance
4. External Participation in
Cluster Competitions.
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1) Suggestion and Quality Circle2) Lean Manufacturing System3) 5–S4) 7 QC Tools5) 5 Why analysis sheet 6) Process FMEA7) Energy Management8) Level up Training9) Tier-2 up gradation
Training Program Conducted for Cluster vendors
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Cluster Member Training – Problem Solving
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Cluster Member Training – 5S
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Cluster Member Training – Lean Manufacturing
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Trainings impact
5 S
ProblemSolvingTools
ClusterTraining’s
MPS
7 QCTools
SmallGroup
Activity
SuggestionScheme
1S+2S+RedTag
Rejection/Rework+ PPM
Single piece flow+ Model Line
Kaizens+ Continuous Improvement
Projects
QualityCircles
Kaizens+ Poka Yoke
Red Bin Analysis
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
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LEARNING FROM CLUSTER
TRAINING TO TOP
MANAGEMENT
PASSED ON TO GRASS ROOT
LEVEL
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Activity Plan
1. Customer Satisfaction Report
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
Phase-1 (2005-06) Phase-2 (2006~07) Phase-3 (2007~09)
1. Complete 5 S implementation
2. Lean Manufacturing
3. Gemba Kaizen
4. Deep Analysis
5. Energy Cost Monitoring
6. Cost of Poor Quality
1. Cluster – 2 Launched
2. Lean Manufacturing
Horizontal Deployment
3. Tool Maintenance
4. External Participation in
Cluster Competitions.
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Red Bin Analysis – M/s STPL ( Tier 2 )
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Activity Plan
1. Customer Satisfaction Report
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
Phase-1 (2005-06) Phase-2 (2006~07) Phase-3 (2007~09)
1. Complete 5 S implementation
2. Lean Manufacturing
3. Gemba Kaizen
4. Deep Analysis
5. Energy Cost Monitoring
6. Cost of Poor Quality
1. Cluster – 2 Launched
2. Lean Manufacturing
Horizontal Deployment
3. Tool Maintenance
4. External Participation in
Cluster Competitions.
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1S /2S in Press Shop – M/s NRB
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1S /2S in Molding Shop – M/s Sanatan
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
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Tool Room 1S / 2S Activity – M/s NRB
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Activity Plan
1. Customer Satisfaction Report
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
Phase-1 (2005-06) Phase-2 (2006~07) Phase-3 (2007~09)
1. Complete 5 S implementation
2. Lean Manufacturing
3. Gemba Kaizen
4. Deep Analysis
5. Energy Cost Monitoring
6. Cost of Poor Quality
1. Cluster – 2 Launched
2. Lean Manufacturing
Horizontal Deployment
3. Tool Maintenance
4. External Participation in
Cluster Competitions.
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Single Piece Flow Line M/s Allena
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BEFORE AFTER
COMMENTS:1. ZIG ZAG PROCESS FLOW
COMMENTS: 1. SINGLE PIECE FLOW.
PRODUCTION SHOP
Single Piece Flow Line M/s PSPL
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Activity Plan
1. Customer Satisfaction Report
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
Phase-1 (2005-06) Phase-2 (2006~07) Phase-3 (2007~09)
1. Complete 5 S implementation
2. Lean Manufacturing
3. Gemba Kaizen
4. Deep Analysis
5. Energy Cost Monitoring
6. Cost of Poor Quality
1. Cluster – 2 Launched
2. Lean Manufacturing
Horizontal Deployment
3. Tool Maintenance
4. External Participation in
Cluster Competitions.
© Subros Limited. All rights reserved
BRAIN STOARMING SESSION ON SHOP FLOOR – Tier 2
Quality Circles Learning from Cluster
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
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PIE ANALYSIS – DIMENSIONAL VARIATION
PROCESS PARAMETERS
4%
INSPECTION METHOD
22%
PREVENTIVE MAINTENANCE
26%
SKILL OF OPERATOR
7%
TOOL DESIGN41%
METHOD OF INSPECTION
44%
TOOL DESIGN13%
PREVENTIVE MAINTENANCE
43%
PIE ANALYSIS – BURRS
TOOL DESIGN8%
PREVENTIVE MAINTENANCE
38%
Chips getting
stuck up
54%
PIE ANALYSIS – DENT
TOOL DESIGN20%
SPARE FEEDER7%
SKILL OF OPERATOR8%
PROCESS PARAMETERS8%
PREVENTIVE MAINTENANCE57%
PIE ANALYSIS – OFFSET IN COMPONENTS
DEFECT CAUSE ANALYSIS
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Dimensional variation
Inadequate Tool Design
Tool Design review with
Subros started jointly.
DEFECTS CAUSE ACTION PLAN
Inadequate Method of Inspection not in line
with SL
Method of inspection
aligned with Subros
Dents
Inadequate Process Design
Kaizen Implemented
Inadequate Tool
Preventive Maintenance
Adherence of Preventive
maintenance of Tools started.
RESULTS
Reduced Defects at Customer
end.
Reduced PPM Level
at Customer
End.
Tool Breakdow
n time reduced.
Tool life increased.
Offset in parts,
Burrs
ACTIONS INITIATED BASED ON QC FINDINGS
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Quality Circle Competition – Tier 2
MACE team along with cluster members - Q.C. competition at Subros
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ACHIEVEMENT : SUBROS CLUSTER
M/s SANATAN AUTOPLAST
Over All Winner - 1st Position MPS Competition ( All MACE Cluster Members ) MSIL
Change
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Activity Plan
1. Customer Satisfaction Report
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
Phase-1 (2005-06) Phase-2 (2006~07) Phase-3 (2007~09)
1. Complete 5 S implementation
2. Lean Manufacturing
3. Gemba Kaizen
4. Deep Analysis
5. Energy Cost Monitoring
6. Cost of Poor Quality
1. Cluster – 2 Launched
2. Lean Manufacturing
Horizontal Deployment
3. Tool Maintenance
4. External Participation in
Cluster Competitions.
© Subros Limited. All rights reserved
Part Name :- Cap Receiver Bush
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
Poka Yoke Implementation At M/S Swastika
Before
Milling cutter can cut collar thickness Milling cutter can not cut collar thickness.
Milling Dimn 31-0.1
Under cut slot 2mm Provided
After
Collar 2.00 ± 0.1
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
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Part Name :- Bush Receiver
Part no. :- 647831-3090
Problem Observed :- without milling piece observed
Effect :- Fitment Problem
Problem occur :- In-House.
POKA YOKE :- Make a profile in Jig to control without milling operation.
Before
Without milling piece can be missed
Without milling piece can not drill
Milling Dimn 28-0.1
Profile dimn 28
After
Before no profile of dimn 28
Poka Yoke Implementation At M/s Swastika
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only one locater provided & open type tool
Comments :- Locater on one side only for bending operation so that piece was shifting from its original position while
operating.
Comments :- Locater provided on all the three sides for bending operation so no chances of bending being N.G as the piece cannot shift.
Part Name :- Cover Dust
Part no. :- 047372-0830
Problem Observed :- Bending Angle 200 +0/-10 & 650 +20/-00 Found NG
Effect :- Fitment Problem
Problem occur :- In-House.
POKA YOKE :- Introduced 3 Locator to fool proof the bending in given tolerance angle
three locaters provided
no chances of
piece shifting & close type
tool
Poka Yoke Implementation At M/s Metal Former
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Part Name :- Charging Port
Part no. :- 646171-3780
Problem Observed :- Chamfer operation miss
Effect :- Fitment Problem
Problem occur :- In-House.
POKA YOKE :- Introduced Chamfer in fixture to fool proof the chamfer in component
Comments :- Chamfer missing can not detected in the process. Method of
detection for chamfer missing is visual inspection.
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
Chamfer provided on the bottom of pin inside the fixture
O.K PART WITH CHAMFER
Poka Yoke Implementation At M/s Swastika
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Part Name :- Tube connector
Part no. :- 646172-3400
Problem Observed :- CD 14.0 ±0.3 was observed under size / Over Size
Effect :- Fitment Problem
Problem occur :- In-House.
POKA YOKE :- Introduced a Pin to fool proof CD
No control to detect CD 14.0±0.3 Error proofing to control CD 14.0±0.3
CD 14.0 ±0.3
Provided Locators for CD
Poka Yoke Implementation At M/s Global
© Subros Limited. All rights reserved
Part Name :- 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
Over size pieces
Remarks:- No detection of oversize pieces . Remarks:- over size pieces can not be drilled.
Before After
Dia 16.00
Poka Yoke Implementation At M/S Global
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Part Name :- BracketPart no. :- 647782-0830Problem Observed :- Without operation pc.mixing Reason :- operation missingEffect :- Fitment Problem Problem occur :- In-house ProblemPOKA YOKE :- Provided T stopper in drilling Jig to
avoid mixing of without milling operation
Remarks:-Don't detect pcs without milling Remarks:- Detect without milling pcs
Before After
26.0±0.2
Poka Yoke Implementation At M/S Swastika
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
13
© Subros Limited. All rights reserved
Activity Plan
1. Customer Satisfaction Report
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
Phase-1 (2005-06) Phase-2 (2006~07) Phase-3 (2007~09)
1. Complete 5 S implementation
2. Lean Manufacturing
3. Gemba Kaizen
4. Deep Analysis
5. Energy Cost Monitoring
6. Cost of Poor Quality
1. Cluster – 2 Launched
2. Lean Manufacturing
Horizontal Deployment
3. Tool Maintenance
4. External Participation in
Cluster Competitions.
© Subros Limited. All rights reserved
Tool Kit at Shop Floor – Tier 2
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2S in Grinders Cupboard – Tier 2
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BEFORE AFTER
COMMENTS: Unorganized Store Area. COMMENTS:. ORGANISED STORE AREA WITH FIFO.
RM STORAGE AREA
5S Improvements on Vendor Shop Floor
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BEFORE AFTER
BEFORE AFTER
COMMENTS:
INADEQUATE TOOL STORAGE
COMMENTS: TOOL CONTROL IN LINE WITH BEST
MANUFACTURING PRACTICE.
TOOL STORAGE AREA5S Improvements on Vendor Shop Floor
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BEFORE AFTER
COMMENTS:
RANDOM INSPECTION FLOW CREATING MIX UPS
COMMENTS:.
DEDICATED INSPECTION STATION WITH INWARD & OUTWARD FLOW
FINAL INSPECTION AREA5S Improvements on Vendor Shop Floor
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
14
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Raw Material Storage Area Improvement
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Visual Management Improvement
© Subros Limited. All rights reserved
Activity Plan
1. Customer Satisfaction Report
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
Phase-1 (2005-06) Phase-2 (2006~07) Phase-3 (2007~09)
1. Complete 5 S implementation
2. Lean Manufacturing
3. Gemba Kaizen
4. Deep Analysis
5. Energy Cost Monitoring
6. Cost of Poor Quality
1. Cluster – 2 Launched
2. Lean Manufacturing
Horizontal Deployment
3. Tool Maintenance
4. External Participation in
Cluster Competitions.
© Subros Limited. All rights reserved
Lean Manufacturing Focus
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Over production
Idle time
Unnecessary movement
Excessive inventory
IDENTIFYING WASTE
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IDENTIFYING WASTE
Producing Defective parts
Unnecessary inspections
Unnecessary Processing
Unnecessary transport
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
15
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Lean Manufacturing
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 reserved1
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/SUBROSand training provided
© Subros Limited. All rights reserved
TOOLS USED IN IMPLEMENTATIONOF MODEL LINE CONCEPT
TIME STUDY KAIZEN POKA-YOKE SMALL GROUP ACTIVITY QUALITY CIRCLE
METHODOLOGY ADOPTED
© Subros Limited. All rights reserved1
AIM : - TO MAKE A MODEL LINE FOR SUBROSCMB 646260-4361
REASONS FOR SELECTION
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.
THE WAGON-R SINGLE PIECE FLOWMODEL LINE SUCCESS STORY
© Subros Limited. All rights reserved
PROCESS FLOW BEFORE IMPLEMENTATION
1- ARGO VM 11 - ARGO - VM28 16 - BDM - 04 13 - BDM TP - 05M TG F A C E M ILLIN G S LOTTIN G F IN A L C OU N TER S TU D S POT F A C IN G
15 0 P c s / 12 Hrs . 2 2 0 P c s / 12 Hrs . 2 5 0 Pc s / 12 Hrs . 3 0 0 P c s / 12 Hrs .
2 - BDM - 15 10 - KAE DEE - VM33M TG HOLE D R ILLIN G & IN S ID E FLA N GE M ILLIN G 17 - KAY DEE - VM35 12 - PDM - 17
R EA M IN G 2 2 0 P c s / 12 Hrs . TA P ER C U T S TU D D R ILLIN G &
12 0 P c s / 12 Hrs . 2 8 0 Pc s / 12 Hrs . EN D M ILLIN G D IA 9 .0 0 mm
2 0 0 P c s / 12 Hrs .
9-BDM 053 - BDM 3 B o s s t a p e r d ril l ing 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 Pc s / 12 Hrs . 2 4 0 Pc s / 12 Hrs .
6 - KAY DEE-VM29S M A LL B OTTOM FLA 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 OTFA C E
5 - HM - VM30 2 3 0 P c s / 12 Hrs . 2 2 0 Pc s / 12 Hrs . 2 10 P c s / 12 Hrs .
LON G FLA N GE OU TER
M ILLIN G
15 0 P c s / 12 Hrs . 7 - CNC - 013 - B OS S TA P ER * 7 - ARGO 15 - PDM - 16
M ILLIN G 3 - B OS S TA P ER FIN A L S P OT F A C E 10 . 0 0 mm
8 -MULTI SPINDLE MS-02 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 .
D R ILLIN G OU TER F LA N GE. 10 0 P c s / 12 Hrs .
2 0 0 Pc s / 12 Hrs .
MATERIAL MOVEMENT – 63 meter
© Subros Limited. All rights reserved
MAN0MACHINE
METHODMATERIAL
Operator skill less
Number of machines lessLay out of machine wrong
Material movementhigh
Dedicated machine not given for all operations Material mixed
WIP high
LOW OUTPUT
FISHBONE DIAGRAM MADE TO STUDY 4M CONSTRAINTS
METHODOLOGY ADOPTED
SUSPECT CAUSES
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
16
© Subros Limited. All rights reserved
LAY OUT OF 1ST PHASE
11 - PDM - 1710 - ARGO - VM28 STUD DRILLING &
SLOTTING END MILLING DIA 9 .0 0 mm2 2 0 Pcs / 12 Hrs. 2 20 Pcs / 12 Hrs .
12 - BDM TP - 05STUD SPOT FACING
3 00 Pcs / 12 Hrs .
9 - ARGO - VM33INSIDE FLANGE MILLING
2 2 0 Pcs / 12 Hrs.
3 - BDM 13 - BDM VM31Counter & Gaug e Checking BOTTOM FLANGE SPOTFACE
3 0 0 Pcs / 12 Hrs . 2 50 Pcs / 12 Hrs .
4 - PDM - 01 14 - PDM - 16MTG HOLE SPOT FACING 8 -SPM FINAL SPOT FACE 10 .0 0 mm
2 50 Pcs / 12 Hrs. 3 BOSS TAPER DRILLING 2 50 Pcs / 12 Hrs .& DRILLING OUTER FLANGE.
2 50 Pcs / 12 Hrs .
15 - BDM - 045 - HM - VM30 FINAL COUNTER
LONG FLANGE OUTER 3 00 Pcs / 12 Hrs .
MILLING 7 - ARGO16 0 Pcs / 12 Hrs. 3 BOSS TAPER MILLING & 5 MM CUT
MILLING
10 0 Pcs / 12 Hrs . 16 - ARGO - VM355-CNC MILLING (AKSHARA) TAPER CUT
LONG FLANGE OUTER MILLING 3 20 Pcs / 12 Hrs .2 0 0 Pcs / 12 Hrs .
7 - CNC - 013 - BOSS TAPER 17 - PDM - TP05
6 - ARGO-VM29 MILLING TAPPING M 8 X 1.2 5mm
SMALL BOTTOM FLANGE 150 Pcs / 12 Hrs . 2 50 Pcs / 12 Hrs .MILLING
2 50 Pcs / 12 Hrs.
1-SPM 02MTG.FACE
MILLING 200 P cs / 12 Hrs .
2 - B D M - 15 M TG HOLE DRILLING &
REAMING 120 P cs / 12 Hrs .
2 - B D M - 15 M TG HOLE DRILLING &
REAMING 120 P cs / 12 Hrs .
SPM MTG.FACE
MILLING 200 P cs / 12 Hrs .
© Subros Limited. All rights reserved
1ST LEVEL CHANGE IN LAYOUT
© Subros Limited. All rights reserved
INHOUSE TEAM FORMED FOR SPM DESIGNING
Change
© Subros Limited. All rights reserved
NEW SPM INTRODUCED FOR BASE MILLING
BENEFITS: -1. Manpower Saved: - 012. Jigs / Fixtures Saved: - 013. Productivity increased by: - 100 pcs. (15%)
KAIZENS IMPLEMENTED IN 1ST PHASE
OPERATION NO 01 :- BASE MILLINGCONSTRAINT :- PRODUCTIVITY LOW
BEFORE AFTER
© Subros Limited. All rights reserved
KAIZENS IMPLEMENTED IN 2nd PHASE
OPERATION NO 04 :- TOP MILLINGCONSTRAINT :- QUALITY(Dimn. 104.4)& PRODUCTIVITY
BEFORE AFTER
NEW SPM INTRODUCED FOR TOP MILLING
VERTICAL MILLING MACHINE ROTARY MILLING MACHINE
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.
BENEFIT :
© Subros Limited. All rights reserved
MODEL LINE SINGLE PIECE FLOWOPERATION NO. 1
OPERATION NO. 2
OPERATION NO. 3
OPERATION NO. 4
OPERATION NO. 5
OPERATION NO. 6
OPERATION NO. 8
OPERATION NO. 9
OPERATION NO. 10
OPERATION NO. 12
OPERATION NO. 13
OPERATION NO. 14
OPERATION NO. 16
OPERATION NO. 15
OPERATION NO. 7
OPERATION NO. 11
LAY OUT OF 2nd PHASE
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
17
© Subros Limited. All rights reserved
800
400600
0
200
400
600
800
1000
PRODUCTION
PREVIOUS
1st PHASE
2nd PHASE
0.45%0.35%
0.20%
0.00%
0.20%
0.40%
0.60%
REJECTION
PREVIOUS
1st PHASE
2nd PHASE
63
34
10
0
20
40
60
80
MATERIAL MOVEMENT
PREVIOUS
1st PHASE
2nd PHASE
GOOD
GOOD
GOOD
meter
meter
OVER ALL IMPROVEMENT
meter
© Subros Limited. All rights reserved1
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.
SUMMARY OF ACHIEVEMENTS
© Subros Limited. All rights reserved
Lean Manufacturing
2nd Phase :
Lean Manufacturing projects are to be taken up for implementation
a) Improvement in Inventory turn ratio
b) Reduction in energy consumption
c) Quality improvements
d) Reduction in break down time of machines & improvement of O.E.E.
© Subros Limited. All rights reserved
Quality Improvement Activities
Initiative• MACE Cluster-1
Launched
InitiativeTrainings & Execution of
Projects at Vendor Cluster Members
Initiative
SSIG Activity Launched
InitiativeSystem Up gradation to
ISO/TS 16949• MACE Cluster-2 Launched
Initiative• Design Specification Joint
Review with Tier 2.• Tool Design Review.• Joint Tool Maintenance
2004~05
2005~06
2006~07
2008~10
© Subros Limited. All rights reserved
Supplier System Improvement Group
SSIG
VendorExistingSystem
SubrosRequirement
SUBROS Initiative
© Subros Limited. All rights reserved
SSIG Methodology
SSIG Effectiveness
monitoring
Implementationby TEAM at
Vendor’s End
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
18
© Subros Limited. All rights reserved
Current System ReviewBased on Ideal System Check Sheet
Gap Analysis
Implementation of New System
Fine Tuning
SSIG Methodology
© Subros Limited. All rights reserved
Quality Improvement Activities
Initiative• MACE Cluster-1
Launched
InitiativeTrainings & Execution of
Projects at Vendor Cluster Members
Initiative
SSIG Activity Launched
InitiativeSystem Up gradation to
ISO/TS 16949• MACE Cluster-2 Launched
Initiative• Design Specification Joint
Review with Tier 2.• Tool Design Review.• Joint Tool Maintenance
2004~05
2005~06
2006~07
2008~10
© Subros Limited. All rights reserved
ISO-9001 / TS16949 Certification Trend
TS 16949 ISO 9001
NU
MB
ER O
F SU
PP
LIER
YEAR
613
19
8
14
22
18
29
47
31
42
73
36
42
78
46
36
82
0102030405060708090
100
2004 2005 2006 2007 2008 2009
GOOD
© Subros Limited. All rights reserved
Quality Improvement Activities
Initiative• MACE Cluster-1
Launched
InitiativeTrainings & Execution of
Projects at Vendor Cluster Members
Initiative
SSIG Activity Launched
InitiativeSystem Up gradation to
ISO/TS 16949• MACE Cluster-2 Launched
Initiative• Design Specification Joint
Review with Tier 2.• Tool Design Review.• Joint Tool Maintenance
2004~05
2005~06
2007~08
2008~10
© 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 NOIDA
4 SOUTHEAST ELECTRONICS GHAZIABAD
5 PSPL GHAZIABAD
6 MOHINDRA FASTENERS LTD ROHTAK
Sharing of Good Manufacturing
Practices started between 2 Clusters.
© Subros Limited. All rights reserved
Improvement Status
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
19
© Subros Limited. All rights reserved
START OF Cluster
Improvement Activities
72468
67132
45938
30945
131659603
46362000
500
25500
50500
AVG.'02-03
AVG.'03-04
AVG.'04-05
AVG.05-06
AVG.'06-07
AVG.'07-08
AVG.'08-09
Target08-09
33%
32%
PP
M R
ejec
tio
n
GOOD
VENDOR PARTS PPM TREND
51%
27%
93%
© Subros Limited. All rights reserved
8.08
6.25 6
4.253.92
3.2
0123456789
10
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10(Aug'09)
GOOD
No
. of
def
ects
/ m
on
th
Year
(47)
4%
(51)
(72)(75)
(97)
(16)
VENDOR PARTS DEFECTS AT SUBROS END
60.4%
START OF Cluster
Improvement Activities
© Subros Limited. All rights reserved
31403
13706
10881
5693
500
1000
3000
5000
7000
9000
11000
13000
15000
17000
19000
05~06 06~07 07~08 08~09 Target'08~09
GOOD
PP
M
Year
SSIG CLUSTER VENDOR PPM TREND
65%
48%
56%
141%
© Subros Limited. All rights reserved
10.25
6.83
4.58
3.16
2
0
2
4
6
8
10
12
06~07 07~08 08~09 09~10 ( Up to Sep
09 )
Target'08~09
GOOD
PP
M
Year
SSIG CLUSTER VENDOR DEFECT TREND
33%
33%
70%
31%
© Subros Limited. All rights reserved
62
73
88
114110
0
20
40
60
80
100
120
05~06 06~07 07~08 08~09 Target'08~09
GOOD
NU
MB
ER
S
Year
Cp/ Cpk improvement > 1.33 (Vendor End) ( Cumulative )
15%
17%
23%46%
© Subros Limited. All rights reserved
43
96
114
131
150
0
20
40
60
80
100
120
140
160
180
05~06 06~07 07~08 08~09 Target'08~09
NU
MB
ER
S
Year
Number of Poka Yoke / Kaizens through SQIG at Vendor End ( Cumulative )
GOOD
55%
16%13%
67%
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
20
© Subros Limited. All rights reserved
Plan
Act
Che
ck
Do
Assess situation Set Targets
Teach & Impart Subros learning in quality Journey to extended partners
Review Meetingswith Suppliers
Focused Improvement Activities
Approach
Cluster Improvement
Activity
© 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
Cluster Performance 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
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
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
21
© Subros Limited. All rights reserved
Repeat Complaint Vendor’s 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
Subros Vendor Meet - Sep 2009
Customer Voice by Mr S Maitra (MEO –Supply Chain MSIL)
Chief Guests with Subros Top Management
Vision & MissionCommitment for Future
© Subros Limited. All rights reserved
Award Winner
s
A Growing Commitment each year
Award Distribution at Subros Vendor Meet
© Subros Limited. All rights reserved
Plan
Act
Che
ck
Do
Assess situation Set Targets
Teach & Impart Subros learning in quality Journey to extended partners
Review Meetingswith Suppliers
Focused Improvement Activities
Approach
Cluster Improvement
Activity
© Subros Limited. All rights reserved
Next Phase of Improvement Activities
Tool & Gauge Design
Tool Maintenance Support.
Lean Manufacturing implementation at Cluster II Vendors.
Guidance & Training on Cost of Poor Quality at Tier 2.
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
22
© Subros Limited. All rights reserved
CHANGE POINT - TOOL DEVELOPMENT
PartDrawing
Toolingconcept
TrialTool
makingTool
Design
By Subros
PartDrawing
Tooling Concept
Tool Making
Trial
BEFORE
CHANGE POINT
By vendor
QualityStandard
Tool Design
Reviewby
Subros
SubrosApproval
FOCUSAREA
QualityStandard
By Subros
By vendor
By vendorBy vendor
Change
© Subros Limited. All rights reserved
Phase 1
-Data collection of vendor tools.
-Quality problem history regarding the tool &component
-Joint review with vendor for scope of -maintenance support
Phase 2
Phase 3
-Subros team visit for tool status review
-Identification of critical issues
-Development of solutions
-Implementation support at vendor end
TOOL MAINTENANCE SUPPORT TO VENDORS
© Subros Limited. All rights reserved
Tier 2 – Tool Maintenance Joint Review
Observations Tool drawings not adequate.
Spares drawings not available.
Tool preventive maintenance check sheet not maintained.
No preventive maintenance plan for low volume tool.
Vendor End Tool Maintenance Support Activity Findings
© Subros Limited. All rights reserved
Tier 2 – Tool Maintenance Joint Review
Observations
Tool Condition inadequate
Critical entries of preventive are not made
Periodic maintenance schedule not mentioned in tool history card.
Vendor End Tool Support Activity Findings
© Subros Limited. All rights reserved
Other Initiatives
Improvement Journey not complete without improving other aspects of
QCDD
© Subros Limited. All rights reserved
COST REDUCTION TREND
0.75%
0.56%
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
AVG.'02-03 AVG.'03-04
YEAR
PER
CEN
TAG
E
Tier-2 Cost Performance Status
GOOD
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
23
© Subros Limited. All rights reserved
2004~05
2005~06
2006~07
2008~10
INITIATIVE
Alternate sourcing for high value items
INITIATIVEMPS INTRODUCED AT
VENDORS
INITIATIVEZERO BASED COSTING OF ‘A’ CLASS COMPONENTS
INITIATIVE
Cost Reduction Kaizens
Cost Reduction Activities
© Subros Limited. All rights reserved
Alternate sourcing for high value items
YEAR
© Subros Limited. All rights reserved
Cost Reduction Activities
INITIATIVE
Alternate sourcing for high value items
INITIATIVELean Manufacturing
Introduced at Vendors
INITIATIVEZero based costing of ‘A’ Class components
INITIATIVE
Cost Reduction Kaizens
2004~05
2005~06
2006~07
2008~10
© Subros Limited. All rights reserved
Tier 2 Lean Manufacturing Projects Status
S.No. Vendor
1 SWASTIKA, FBD
2 SPECIAL TOOLS, GZD
3 ALLENA, MOHALI
4 SUMATI, FBD
5 PYN, FBD
6 INTERFACE, GGN
7 SUNVISOR, GGN
8 NRB BEARINGS
Overall Cluster
1 1
14 9
1 1
2 2
2 0
2 0
2 2
2 1
PROJECTS IDENTIFIED
PROJECTS COMPLETED
2 2
© Subros Limited. All rights reserved
5
2.5
00.5
11.5
22.5
33.5
44.5
5
Before After
M/s Swastika Automatics, Faridabad
40
24
0
5
10
15
20
25
30
35
40
Man Hour / day
Before After
Project 2: Improvement at Receipt Store while issuing / receiving of material from Vendor
Lean Manufacturing Introduced at Vendors
Project 1: Reduction in product change over time.
HO
UR
S
MA
N H
OU
RS
/DA
Y
GOOD
GOOD
© Subros Limited. All rights reserved
Project: Reduction in Wastages in manufacturing process
8
2
0
1
2
3
4
5
6
7
8
Before After
M/s Interface Microsystem, Gurgaon
Project: Reduction in Wastages in manufacturing process
Ma
n H
ou
r/D
ay
GOOD
Lean Manufacturing Introduced at Vendors
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
24
© Subros Limited. All rights reserved
120
30
0
20
40
60
80
100
120
Before After
54
20
0
10
20
30
40
50
60
Before After
M/s Sumati, Faridabad
Project 1: Reduction in Die changeover time in 40 Ton
machine
Project 2:Reduction in Material dispatches
MIN
UT
ES
MIN
UT
ES
/DE
SP
AT
CH
GOOD
GOOD
Lean Manufacturing Introduced at Vendors
© Subros Limited. All rights reserved
2
56
2
7
0
1
2
3
4
5
6
7
8
9
10
2006~07 2007~08 2008~09 2009~10
Nu
mb
ers
of
Pro
jec
ts
Projects Under Progress
Projects Completed
Over All Trend – Numbers of Lean Manufacturing Projects – Tier 2
© Subros Limited. All rights reserved
Savings Trend – Lean Manufacturing Projects – Tier 2
© Subros Limited. All rights reserved
INITIATIVE
Alternate sourcing for high value items
INITIATIVEMPS INTRODUCED AT
VENDORS
INITIATIVEZERO BASED COSTING OF ‘A’ CLASS COMPONENTS
INITIATIVE
Cost Reduction Kaizens
2004~05
2005~06
2006~07
2008~10
Cost Reduction Activities
© Subros Limited. All rights reserved
Zero Based Costing of ‘A’ Class Components
GOOD
© Subros Limited. All rights reserved
INITIATIVE
Alternate sourcing for high value items
INITIATIVEMPS INTRODUCED AT
VENDORS
INITIATIVEZERO BASED COSTING OF ‘A’ CLASS COMPONENTS
INITIATIVE
Cost Reduction Kaizens
2004~05
2005~06
2006~07
2008~10
Cost Reduction Activities
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
25
© Subros Limited. All rights reserved
Cost Reduction Kaizens
© Subros Limited. All rights reserved
Cost Reduction Kaizens
© Subros Limited. All rights reserved
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
FY
Sav
ings
(Lac
s)
0
2
4
6
8
10
12
No. of Pro
posa
l
Savings (Lacs) 27.4 139.2 110.0 72.8 144.5
No.of Proposals 3 6 6 1 10
2004-05
2005-06
2006-07
2007-08
2008-09
GOOD
Savings due to Cost Reduction Kaizens
© Subros Limited. All rights reserved
Tier-2 Delivery Performance Status
DELIVERY FAILURE 9385
0
20
40
60
80
100
AVG.'02-03 AVG.'03-04YEAR
PE
RC
EN
TA
GE
GO
OD
© Subros Limited. All rights reserved
2004~05
2005~06
2006~07
2008~10
Delivery Improvement Activities
INITIATIVE
BAR Coding Implementation Local Suppliers Base within
same State Extranet for entire supply
chain
INITIATIVE
• Improvement in Ordering System & Delivery to Subros
© Subros Limited. All rights reserved
Methodology for Local Material
Schedule sent to Supplier through
courier
Individual Suppliersends bulk material
on weekly basis
One week material received at SL
Schedule generated at SL from Forecast
Supplier receives Weekly schedule
OLD PROCESS
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
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
26
© Subros Limited. All rights reserved
Daily materialreceiving at SL
Real-time Schedulereceived through
Extranet
NEW PROCESS
Methodology for Local Material
2
2
7
10
Lead Time
Safety Stock
In No. of days
Year 2004
Present
BENIFITS
IT Support to Supply Chain
© Subros Limited. All rights reserved
Delivery Improvement Activities
2004~05
2005~06
2006~07
2007~09
INITIATIVE
BAR Coding Implementation Local Suppliers Base within
same State Extranet for entire supply
chain
INITIATIVE
• Improvement in Ordering System & Delivery to Subros
© Subros Limited. All rights reserved
Bar Coding System
90% MRR Processing
Time Improvemen
t
© Subros Limited. All rights reserved
Activity initially started with 13 SuppliersNow cover the entire Vendor Base
Material Receipt Processing
Time Reduced from 10 Mins. to
1 Minute
Supplier Schedule adherence
Error proof system
© Subros Limited. All rights reserved
Delivery Improvement Activities
2004~05
2005~06
2006~07
2007~09
INITIATIVE
BAR Coding Implementation Local Suppliers Base within
same State Extranet for entire supply
chain
INITIATIVE
• Improvement in Ordering System & Delivery to Subros
© Subros Limited. All rights reserved
Local Supplier Base Within Same State
Proximity to customer
Daily Shipment
Reduction in Inventory level
SUPPLIER COMMITMENTTOWARDS
SUBROS
Six A Class Suppliers have
put up their Plant near to
Subros Plant
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
27
© Subros Limited. All rights reserved
Delivery Improvement Activities
2004~05
2005~06
2006~07
2007~09
INITIATIVE
BAR Coding Implementation Local Suppliers Base within
same State Extranet for entire supply
chain
INITIATIVE
• Improvement in Ordering System & Delivery to Subros
© Subros Limited. All rights reserved
Training and Guidance to
Entire Supplier
base.
IT Support to Supply Chain
© Subros Limited. All rights reserved
99
8 7 0 00
10
20
30
40
50
60
70
80
90
100
2004-05 2005-06 2006-07 2007-08 2008-09
100%12%92%
GOOD
No
. of
del
iver
y fa
ilure
s / y
ear
Year
100% 100%
89.9 %
START OF Cluster
Improvement Activities
Effectiveness of Delivery Improvement Initiatives
© Subros Limited. All rights reserved
Tier-2 Development Performance Status
GO
OD
DEVELOPMENT LEAD TIME (RFQ TO SAMPLE APPROVAL)
45
67
01020304050607080
AVG.'02-03 AVG.'03-04YEAR
NU
MB
ER O
F D
AY
S
© Subros Limited. All rights reserved
2004~05
2005~06
2006~07
2007~09
Development Improvement Activities
INITIATIVEExpert Resources with Domain Knowledge eg Sheet metal , Electricals Recruited INITIATIVE
Pre- Assessment audits started to evaluate vendor capability
INITIATIVEDevelopment Lead cycle reduction planning based on bottleneck processes.
INITIATIVE1. Supplier Involvement at
Initial Development Stage2. Green Supply Chain
© Subros Limited. All rights reserved
REQUEST FOR QUOTATION
SPECIFICATION MEETING
PRICE NEGOTIATION
GAUGE / TOOLING APPROVAL
SAMPLE APPROVAL
Cp, Cpk APPROVAL
FPP LOT APPROVAL
PPAP SUBMISSION
FOCUS ON FIRST
TIME RIGHT
CAPACITY PLANNING
SOP
New Product Development Process
SUPPLIERINVOLVEMENT MEET
CUSTOMER PRICE TARGETS
JOINT INSPECTION
ONE SHIFT PRODUCTION
DEVELOPMENT
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
28
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ProtoPart
Drawing
ProtoSample
QualityStandard
FinalDrawing
Trial atSubros
By Subros
ProtoPart
Drawing
Trial atSubros
LearningFrom
Vendor
QualityStandard
Change Point
By Vendor
ProtoSample
DesignReview
PartDrawing
By Subros
Spec fixMeeting
With Vendor
Jointly
Before
CHANGE POINTS - Design Review Process With Vendor
Change
Spec fixMeeting
With Vendor
Change
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Development Improvement Activities
2004~05
2005~06
2006~07
2007~09
INITIATIVEExpert Resources with Domain Knowledge eg Sheet metal , Electricals Recruited INITIATIVE
Pre- Assessment audits started to evaluate vendor capability
INITIATIVEDevelopment Lead cycle reduction planning based on bottleneck processes.
INITIATIVE1. Supplier Involvement at
Initial Development Stage2. Green Supply Chain
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Green Supply Chain
All Plated parts converted to TrivalentPlating within 3 Months in 05~06
82
13
69
0102030405060708090
Total Vendors EMS 14001 CertifiedVendors
Activity yet to be started
NU
MB
ERS
GOOD
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Effectiveness of Development Initiatives
GO
OD
22
072008 -
09Target08 -09
2005 -07
25
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MSIL Awards for 2006-08
Subros Continuous Achievements…
MSIL Awards for 2008-09 ( Over All Excellence / Quality / Tier 2 Up gradation / R&D ..)
MSIL Supplier Up gradation Award
for4th Consecutive Year
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Benefits of Cluster Activities
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
National Workshop on “Enabling MSME to be Competitive through Quality Tools”
29
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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.
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We can not spell s“U”ccess without “U”
Thank You .
Subros Cluster Relationship ‘Mantra’