Maruti Suzuki has grown significantly over the past 25 years from a time when the Indian auto industry was stagnant. It established joint ventures to develop the component industry in India and introduced new management practices. Today it is a major contributor to Suzuki's global business and is working to become a research and development hub outside of Japan. Maruti focuses on developing its suppliers through programs like Maruti Production System to continuously improve operations across the supply chain.

1. 1

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Maruti Suzuki
A Journey of over 25 years . . .
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Overview of Indian Auto Industry
• Domestic sales- approx 1.95 million („09-‟10)
• Low car penetration
–15 cars per 1000 population
–Industry capacity building up to 4 million units by 2011-12
• Liberalized regime
–Almost all major international auto companies present
–15 players in the market
• Contribution to GDP-5%,

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Maruti Suzuki Snapshot
Equity Structure 54.21% Suzuki, 45.79% with Public
Turnover Rs 30,119.7 Crore
Net Profit Rs. 2,497 Crore
Sales nos 10,18,365 units (FY-09-10)
Market Share (2009-10) 44.7% (Passenger vehicles)
Manpower Over 7,600 employees in 4 plants
Models 14 models with over 150 variants
Joint ventures 20 joint ventures for components
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Auto industry : 25 years ago
• Stagnant market (40,000 cars a year)
• Few players in the Indian auto industry
– 2 car models - Fiat and Ambassador
• No growth drivers
– Low priority accorded to car production
– High tax levels (15 % in 1984 to 66 % in 1991)
– High import duty
• Limited component industry
• Closed Economy

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Inception of Maruti Suzuki
 Established in 1982
 JV between Government of India (74%) and Suzuki Motor
Corporation (26%)
 Objectives
 Make a small, fuel efficient, environment friendly “people‟s
car”
 Modernize India‟s car Industry and boost domestic
manufacturing

7. Maruti Suzuki’s first steps …
Click to edit Master title style
 Set up the component industry
– Facilitated 110 technical collaborations and joint ventures
 Dealer and service network
 New Management Practices
– Open office
– Uniform for employees
– Common canteen
– Quality circles & suggestion scheme, Kaizen, 3G, 5S, 3K

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Maruti Suzuki today
 Suzuki‟s largest manufacturing facility outside Japan
 Maruti‟s contribution in Suzuki group (‟09-‟10)
• Turnover~ 20%
• Profit ~ 67%
 Enroute to becoming R&D hub for SMC outside Japan
 MD & CEO of MSIL is a Board member of SMC
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9. 9

10. Supply Chain Management
 A supply chain is a network of facilities and distribution options that performs the
functions of procurement of materials, transformation of these materials into
intermediate and finished products, and the distribution of these finished products to
customers.
 Supply chains exist in both service and manufacturing organizations, although the
complexity of the chain may vary greatly from industry to industry and firm to firm.
 Traditionally, marketing, distribution, planning, manufacturing, and the purchasing
organizations along the supply chain operated independently. These organizations
have their own objectives and these are often conflicting.
 Marketing's objective of high customer service and maximum sales dollars conflict
with manufacturing and distribution goals.
10

11. Typical Supply Chain
Integrated Supply chain
Upstream Your Distribution
Suppliers Customers
suppliers Company channels
Information flow sharing
11

12. The typical benefits of an excellent supply chain
 Reduction in total logistics costs as a percentage of revenue (material
acquisition, order management, inventory costs and finance/IT support)
 Reduction in order-fulfillment lead time.
 Reduction in inventory.
 Improvement in meeting commitment dates.
12

13. Transportation
Decisions
 Customer service levels, and geographic location play vital roles in such decisions. Since
transportation is more than 30 percent of the logistics costs, operating efficiently makes
good economic sense.
 Shipment sizes (consolidated bulk shipments versus Lot-for-Lot), routing and scheduling
of equipment are key in effective management of the firm's transport strategy
13

14. Development at Vendor’s end
WHY?
Before Going Further We shall now discuss the Secret behind the Maruti’s
excellent response to the challenges it face from the Present Competitive Market
by just improving the conditions at the vendor’s end.
The top Management at Maruti have always known the Secret that :
Vendor’s Development = Maruti’s Success
Therefore, Right from the inception, Maruti has always tried to improve the
condition at vendor’s end. Moreover the Best Practices at Maruti has been applied
to vendor’s through MPS & Lean Projects. 14

15. 15

16. 16

17. Best Practices - Manufacturing Quality
5S
Kaizen 3G, 3K
MPS/ Lean
17

18. 5S

19. What is & Why 5S ?
“A place for everything necessary and
everything necessary in its place, clean and
ready for use” Sort
Set in Order Sustain
5S Promotes: Shine Standardize
• Well laid out and
organized work areas
• Good process flow
• Safety This is the step where
• Standard Work we can most impact
the bottom line.
19

20. 5S is the Foundation for Improvement
Standardized
Work
Quality
Multi-Process
Operations
Visual
Controls
Total Productive
Pull
5S Maintenance
Production/
Kanban
Flexible
Jidoka Employees
Leveling
Rapid
Changeover
20

21. 3G means “In case of an abnormality, all the
concerned members should actually go to the
place where the problem has occurred, see the
actual thing & take realistic action to solve the
problem”
GENCHI – Actual Place
GENBUTSU – Actual Thing
GENJITSU – Actually
21

22.  3K concept is “What has been decided must
be followed exactly as per the standard”
 These concepts are displayed prominently at
work place across the company
KIMERAARETA – What has been decided
KIHON DORI – Exactly as per Standard
KICHIN TO MAMORU – Must be Followed
22

23. Lean Manufacturing
[ MPS – Maruti Production System]

24. What is Lean?
Lean is both:
• A business operating philosophy
• A set of proven tools and solutions
• That accelerates speed
• and reduces the cost from all business processes
by removing waste
Lean focuses on the customer
• Value is defined by the customer, and all activity is
aligned to provide maximum value to the customer
24

25. The Value Stream
• Whenever there is a product for a
customer, there is a Value Stream.
• How do we use the Value Stream?
– See Value
– Differentiate Value from Waste
– Eliminate the Waste
Value Stream: all the actions currently required to bring a product or service
through the design flow (concept to launch) and production flow (raw material to
final product).
25

26. • Value Added activity: transforms or shapes raw material
or information to meet customer requirements.
– Tests:
• The customer must recognize the value (willing to pay for it).
• The product must physically change during the process.
• The activity must be done right the first time.
• Non Value Added activity: consumes time, resources
and/or space, but does not add value.
– Tests:
• Activities that do not meet all of the three test rules.
• Some non-value added work may be necessary.
26

27. Objectives of Value Stream Mapping
 Provide the means to see the material, process
and information flows.
 Support the prioritization of continuous
improvement activities at both the value stream
and plant levels
 Provide the basis for site plan development
AND...
Eliminate Waste
27
1

28. Simplified Current Value Stream Map Example
3 month forecast Production Daily orders
Raw material supplier control
Castings End user/customer
MRP
Weekly schedule
Tuesday and Once a day
Thursday
Inventory Daily shipment
schedule
Machine OP1 Machine OP2 Assembly Test/dispatch
I I I I
C/T = 60 secs C/T = 80 secs C/T = 40 secs C/T = 220 secs
C/O = 100 mins C/O = 10 mins C/O = 2 mins C/O = 2 mins
3400 Uptime = 90% 140 90 220 Uptime = 80%
Uptime = 95% Uptime = 100%
Time avail = 435 Time avail = 435 Time avail = 435 Time avail = 435
2880 15 60 4 720
mins
minutes minutes mins minutes mins minutes mins minutes
60 80 40 220
Seconds Seconds Seconds Seconds
Total production lead-time = 3679 minutes
Value added tim = 400 seconds
28

29. Simplified Future Value Stream Map Example
3 month forecast Production Daily orders
Raw material supplier control
Castings End user/customer
MRP
Daily schedule
Thrice a week Once a day
Daily shipment
schedule
Machine OP1 Machine OP2 Assembly Test/dispatch
I I I I
C/T = 60 secs C/T = 80 secs C/T = 40 secs C/T = 220 secs
C/O = 10 mins C/O = 10 mins C/O = 2 mins C/O = 2 mins
1000 Uptime = 95% 50 10 20 Uptime = 80%
Uptime = 95% Uptime = 100%
Time avail = 535 Time avail = 435 Time avail = 435 Time avail = 435
1450 05 10 1 80
mins
minutes minutes mins minutes mins minutes mins minutes
60 80 40 220
Seconds Seconds Seconds Seconds
Total production lead-time = 1546minutes
Value added time = 400seconds
29

30. Why Lean?
Add Value for the Customer
Faster Speed = Lower Cost
Empower employees – Everyone
participates
Employees make their work
atmosphere better
BIG changes can be made easily and the culture of continuous
improvement is cultivated
30 30

31. Why Lean?
 Cost pressures
 Quality pressures
 Pressure for on-time delivery
 Competition due to global environment
…Because it’s the right
thing to do!!!!!
31

32. Old Cost Model
By Adding
To
We get
32

33. New Cost Model
Customers Dictate
We Subtract
To Determine
33

34. Lean Manufacturing System
Pillar 1 - Just-in-Time
Pull Systems/Kanban
Point Of Use Storage
Quick Changeover/Setup Reduction
Continuous Flow
Takt Time
34

35. Characteristics of a Lean
Process
• Flow: Processes run as continuously as
possible with a rapid cycle time and little
or no Muda.
• Standard Work: The precise description of each
work activity specifying cycle time, takt time, the work
sequence of specific tasks, and the minimum inventory of
parts on hand needed to conduct the activity.
• We achieve Flow and Standard Work through the
elimination of Muda (waste).
– Muda is non-value added activity – i.e. any activity that consumes
resources without creating value for the customer.
35

36. Capacity Utilization
Production Lead Times (days)
60
50
Traditional
Manufacturing
40
30
20 JIT
Manufacturing
10
% Capacity
Utilization
10 20 30 40 50 60 70 80 90 100
36

37. Lean Manufacturing System
Pillar 2 - Jidoka
Quality at source
Poka Yoke *
Andons
Effective problem solving
* Even if one customer out of one million has a problem with his
car the customer’s faith in the company is destroyed. What is needed
is a fool proof system to give defect free products.
37

38. Jidoka
“Autonomation”clarification
Automation vs. Autonomation
(自動化) (自働化)
Labor Reduction vs. Quality Improvement
Increases technicality vs. Reduces technicality
38

39. Lean = Eliminating the waste
Value added
8 Wastes
5  Overproduction
%
 Excess inventory
 Defects
 Non-value added
processing
 Waiting
 Underutilized
Non-value people
added  Excess motion
 Transportation
Typically 95% of Total Lead Time is Non-Value Added!!!
And anything that does not add value is a WASTE !!!
39

40. Inventory Hides Problems
Sea of Waste
Line
Long
Communication Lack of Balance
Transportation
Poor Problems Housekeeping
Scheduling Long Setup
Quality Time
Machine Problems Supplier Absenteeism
Breakdown Delivery
40

41. Eight Wastes - Definitions
• Overproduction – making more than needed
• Transport – excess moving of materials
• Motion – inefficient people movement
• Waiting – people utilization
• Inventory – stuff laying around (often a
symptom of another waste)
• Over-Processing – making to a higher quality standard than
expected by the customer
• Defects/Correction – Time spent fixing defects, including defect
that get thrown away and the time make the product correctly
• Underutilized People – not dedicated to Value-Added
100%, untapped human creativity
41

42. What is Kaizen?
KAI ZEN = KAIZEN
(To modify, to
+ make good, make
(Think, (Religious, holistic
change) better) approach)
Make it easier by studying it, and making the improvement through elimination of waste.
Kaizen are an improvement method that includes ALL EMPLOYEES:
• Improvements should be made within 30 days
• Small change
• Changes with realistic constraints
• Shortcut by changing methods
• Begins with you
• Focus on what you can do
42

43. Principles of Mistake Proofing
Build Quality Into the Process!
It’s easy for us to blame
the people who make mistakes
but we should be looking
closer at the way
we expect them to work.
(Standard work).
43

44. What is Mistake Proofing?
• The use of process or design features to
prevent errors or their negative impact.
• Also known as Poka Yoke, Japanese slang for
“avoiding inadvertent errors”
• Formalized by Shigeo Shingo
• Features of Mistake Proofing:
– Inexpensive.
– Very effective.
44

45. Mistake Proofing
Two types of Mistake Proofing devices
– Control:
Active – prevents
a mistake from occurring,
e.g. electrical outlets
– Warning:
Passive – warns
that a mistake has occurred,
eg buzzer for when
headlights left on in a car
45

46. Results from Lean Manufacturing
Percentage of Benefits Achieved
0 25 50 75 100
Lead Time Reduction
Productivity Increase
WIP Reduction
Quality Improvement
Space Utilization
Flexibility Skill Enhancement Visual Management
46

47. Inventory Management
Types of Inventories
• Inventories in Transit Between echelons
Pipeline Inventories
of Supply Channel.
• Stocks that may be held for
Seasonal Inventories Speculation, but are still part inventory
base that must be managed
• Inventories necessary to meet average
Cyclical Inventories Demand during the Time Between
Successive Replenishments.
• Inventories Created as a hedge against
Safety Inventories Variability in demand for the inventory &
in the Replenishment Lead time.
• Out of Date, stolen or deteriorated
Obsolete Inventories
inventories.
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50. 50

51. VENDOR SELECTION PROCEDURE
Based on the Vendor Performance ,Supply Chain/ Engineering selects the Vendor
for New Part development/ Second source
A team of Supply Chain/ Engineering then visits & performs an assessment
As per Maruti’s laid down criteria produced below
After MD approval, SC issues Letter of Intent to Vendor.
CRITERIA FOR VENDOR SELECTION
1. Vendor's Past Problem on Quality, Cost & Delivery.
2. Vendor technological Capability in Designing, Manufacturing, Testing
3. Management of company wrt to professionalism, Clarity in Org structure.
4. Financial health
5. Tool making capability
6. Quality system in the Org
7. Proximity to enable JIT deliveries
8. Loyalty

52. 52

53. Supplier Selection Tech Review Issue of Drawing
& Issuance of Meeting with MSIL /Specs/ Standards
LOC/LOI by MSIL (if req.) etc. by MSIL
Preparation of Specification
Specification meeting
record & Part
Finalization of all Meeting with MSIL
Development activity Specifications to discuss about
Chart MSIL Requirements.
Constitution of Periodic internal Joint Development
Project Team by monitoring of review with MSIL
Vendor & development before MSIL
intimation to MSIL process & development
adherence to part milestones.
development
activity chart by
the vendor. 53

54. Information of any Preparation of Part
Delays/ Salvage Development
Plans to MSIL Problem history by
the vendor.
Part Development Stages of New Model Development at
MSIL:
Design Proto » Production Proto » Mass Production » Pilot
Production » Start of Production
54

55. 55

56. Before Start of Mass Production, conduct PFMEA along with CFT.
Understand the accuracy Requirement of the Parts & ensure Process Capabilities are
achievable for meeting them
Review the Past Quality Problems & establish Poka –Yoke
Design & Plan The process Layout so as to minimize material movement, inventory
Levels & wherever possible try to achieve Single Piece Flow.
Plan & Control the procurement of jigs, dies & machineries, equipment etc. to
produce & deliver parts as per development activity chart.
Establish a detailed document system to communicate serious Quality issues within
the Company.
56

57. Calculate PPVT Rate & Net Operating Time
Conduct PPVT (Generally for 2 hrs) using the same process conditions (tools/ dies/
machines/ RM/ Manpower etc.) with which Mass Production shall be carried out.
Is it NO
Satisfactory?
Take Counter Measures &
YES Carry out PPVT again
Conduct additional trial for 4 hrs to ensure consistency
Calculate Process Capability for Parameters Decided in Spec Meeting
Submit PPVT Trial Report with countermeasures (if any) & Process Capability Report to MSIL
57

58. Prepare Operation Standards/ Work Instruction Sheets for all process standards
Establish a procedure for enactment, revision & control of operation standards/ WIS
Indicate A in the standard if operation has any A item
Review the standards whenever there is a Quality Feedback
Establish Job set up verification Standards for die & tool changes & record the same
Display the sample in final inspection Area
Nominate & Designate A Operators/ Inspectors.
Put up A display boards at processing & inspection stations of A Parts, items & dispatch area
58

59. 59

60. Produce FPP lot with minimum sample size of 300 or as decided in specification
meeting with MSIL
Establish identification of FPP during internal production & Processing by means of
suitable tagging
Inspect all the Quality characteristics mentioned in the drawing & MIS-P with sample
size as discussed with MSIL.
Submit FPP lot with Relevant reports to MSIL with Proper “FPP” marking on box/
bins/ Trolleys
Evaluation of FPP Lot by MSIL
Is Results
NO YES
found
satisfactory
Rejection of FPP Lot by SQA Approval of FPP lot by
SQA.
Carry out corrections/
60
Improvements

61. 61

62. 62

63. Establishment of documented procedures & Controlling Parameters for initial Supply
control(ISC) for a) New Product Change b) 4M Condition Change
Fix the time period of ISC & the responsibility to declare the start & termination of
ISC.
Establish special process control, lot control & Traceability
Provide clear identification & Display on the process/ line in shop floor to ensure that
ISC is being observed for the part in question.
Conduct Sub Vendor audit if the change pertains to them.
Record all the problems during ISC & take prompt countermeasures.
Check the effectiveness of counter Measures periodically.
63

64. Carry Out Process Capability studies.
YES Is the Result NO
Satisfactory?
Terminate ISC Extend ISC till all the criteria are met.
Reconfirm Process Capability & Report the results to MSIL (if capabilities are not
satisfactory, employ 100% checking till they are corrected.)
Depute a representative at MSIL (if decided by MSIL) to address problem till ISC
Completion.
64

65. 65

66. MSIL shall Decide the packing Specifications & send the same to the vendor.
Vendor to submit the Packing sample to MSIL using the packing Guidelines provided
by MSIL
Satisfactory Evaluation of
Packing
Not Satisfactory
Samples by
MSIL
Start supplies in the Carry out modifications & resubmit
approved packing with ID the samples.
tag marked “New Packing”
66

67. 67

68. Establishment a documented system for identification & Traceability of Parts & Their
inspection status.
Establish batch code for all A , Functional & General parts.
Incase of RM of A part affecting A item, record the details of heat, code, date &
shift of production
Practice FIFO () First-in First-out for all incoming, in process & finished parts
Address absence or inadequate identification & Traceability as a Failure mode in
PFMEA.
Ensure all requirements of MSIL for identification & Traceability
Maintain records for all 4M changes as per the prescribed format.
68

69. Vendor Rating
69

70. Objective of Vendor Rating
• System for evaluation of vendors
• Based on the objective data compiled about the
vendor
• Used for defining the
 Future Business Dealings
 Share of Business
 Vendor awards, &
 Improvements
70

71. Vendor Rating System
CR
Rating
8
Quality 40 M
Warranty
16
% CPV
Rating
8
Cost 35 A
Defects
Rating
5
VR Incoming
16
Quality
Delivery 10 M QPCR
4.4
Rating
Response & Rejection
5
5 A Rating
Service
Vendor
Audit
8 A
QPCR
Resp.Time
1.6
Development 10 A
71

72. Vendor Rating System
Quality 40 M Amount of
5.2
Price Redn
Price Reduction 12.2
Cost 35 A % of Price
7
Redn
VR
Delivery 10 M Amount of
5.2
VAVE Saving
Cost Saving
12.2
Response & thru VAVE
5 A % of VAVE
Service 7
Saving
Development 10 A Price Redn in %
10.6
Focus Models
72

73. Vendor Rating System
Quality 40 M
E- Nagare Quantity Default 4
Cost 35 A
VR
Delivery 10 M E- Nagare Time Default 4
Response &
5 A
Service Trolley & Bin Condition 2 A
Development 10 A
73

74. 74

75. Defect (Nos/Month)
0
1
2
3
4
5
Act 09-10
1.17
1
Apr'10
1
May'10
0
Jun'10
0
Jul'10
2
Aug'10
1
Sep'10
3
Oct'10
0
Nov'10
DEFECTS PER MONTH
2
Dec'10
1. DEFECTS AT MSIL
DEFECT TGT ACHIEVED
1
Jan'11
Feb'11
Mar'11
Tgt 10-11
1.25
Act Cum 10-11
1.22
BETTER
TARGET PROVIDED BY MSILM -

76. # 1 DEFECT AT MSIL (2010-11)
DEFECT DETAIL 4M ANALYSIS
A Man Method
Part : REINF COMP RR DR HINGE -R O O
Model : SWIFT - DZIRE K K
7/16 Nut welded
Date : 28.04.2010 instead of M-10
Defect : 7/16 NUT WELDED INSTEAD OF M-10 7/16 Nut welded
instead of M-10 Locating pin not
Qty : 1 Material Machine OK
O N
K G
WHY-WHY ANALYSIS: OCCURANCE C/M IMPLEMENTATION & HORIZONTAL DEPLOYMENT
COUNTER-MEASURES :
WHY-1 Why 7/16 NUT WELDED INSTEAD OF M-10
• POKA-YOKE IN WELDING JIG BY USING THREADED PIN
ANSWER 7/16 QUALIFIED IN WELDING JIG • 100 % NUT INSPECTION WITH M-10 BOLT
WHY-2 WHY 7/16 NUT QUALIFY IN JIG ? • INSP STD REVISED
• STORAGE LOCATIONS CHANGED FOR M10 AND 7/16 NUT
ANSWER LOCATING PIN COULD NOT DETECT
• IMPL DATE : 05.05.2010
WHY-3 WHY LOCATING PIN DID NOT DETECT ? HORIZONTAL DEPLOYMENT :
ANSWER CYLINDERICAL, UNTHREADED PIN UNSED • INSP STDS REVISED
•STORAGE LOCATIONS OF M6 & M8 NUT ALSO CHANGED
ROOT
UNTHREADED LOCATING PIN USED
CAUSE
C/M Monitoring
WHY-WHY ANALYSIS: FLOW 4
2 0 0 0 0 0 0 0 0 0
WHY-1 WHY-2 WHY-3 WHY-4 WHY-5 0
Jan '11
Jun '10
Jul'10
May'10
Oct'10
Sep '10
Dec'
Aug '10
No v, 1
10
Insp chkd
0
INSP could visually Insp std not
not detect without clear
using a bolt

77. POKA YOKE
CAPARO MARUTI LIMITED CMLB
KAIZEN / PLANT IMPROVEMENT IDEA SHEET
IDEA DATE 28-Apr-10 KAIZEN NO. 4 IMPLEMENTATION TEAM MODEL - L DEPTT. WELDSHOP IMPLEMENTATION DATE 5-May-10
RESOURSES USED ( Rs.) .
TITLE : QUALITY IMPROVEMENT
SAVINGS ( Rs.) 0
BEFORE KAIZEN AFTER KAIZEN IMPROVEMENT AREA
SEPARATE BINS FOR STORAGE 1. MANPOWER / HOUR SAVING 0
TO PREVENT NUT MIXING
2. SPACE SAVING 0
3. ENERGY SAVING 0
4. MOVEMENT REDUCTION 0
5. QUALITY IMPROVEMENT YES
6. WEIGHT REDUCTION 0
7. YIELD IMPROVEMENT 0
8. 5-S,HEALTH & SAFETY IMPROVEMENT 0
9. COMMUNICATION 0
NEARBY STORAGE LOCATION
CAUSING NUT MIXING THREADED PIN FOR WELDING 10. PRODUCTIVITY IMPROVEMENT 0
M10 NUT
SITUATION SITUATION HORIZONTAL DEPLOYMENT
M-10 & 7/16 NUT MIXING PROBLEM DUE TO NEW RACK TO KEEP NUT IN SEPARATE
AREAS
NEARBY STORAGE LOCATION PLASTIC BINS WITH IDENTIFICATION TAGS
PROBLEM BENEFIT
THREADED PIN FOR M10 NUT SUGGESTED BY DEEPAK
7/16 NUT WELDED INSTEAD OF M 10 NUT IN ZXI
MIXING PREVENTED WITH MODIFIED STORAGE
BKT
LOCATION APPROVED BY AMIT

78. 2. REJECTION PPM AT MSIL
800
BETTER
600 551
PANEL FENDER APRON (A-
STAR, Zn Coated) GOT WHITE
SPOTS DUE TO WATER DROPS
400
Rejn. (PPM)
FROM AC DUCT AT MSILM MX
200 140 128
98 105
33 37 53 38 30
2 0 0
0
Act Cum 10-11
Mar'11
May'10
Feb'11
Apr'10
Jun'10
Nov'10
Dec'10
Jan'11
Aug'10
Jul'10
Sep'10
Act 09-10
Tgt 10-11
Oct'10
PART TROLLEY STORAGE LOCATION CHANGED AT MSILM

79. WHITE SPOTS ON PANEL FENDER APRON (Zn COATED) – A
STAR
WHY WHY ANALYSIS
Q1 WHY? WHITE SPOT FORMATION AT MSILM
A1 WATER DROPS ON PART
Q2 WHY? WATER DROPS
A2 PART TROLLEYS STORED BELOW AC DUCT
Q3 WHY? PART STORED BELOW AC DUCT
A3 WRONG LOCATION SPECIFIED
WRONG PART / TROLLEY STORAGE LOCATION AT
ROOT CAUSE
MSILM
COUNTERMEASURE PART STORAGE LOCATION CHANGED AT MSILM MX

80. 3. MSIL SYSTEM AUDIT PERFORMANCE
BETTER
MARKS (%)
100
85 80
80 75
% Marks
60
40
20
0
Act 10-11
Act 09-10
Tgt 10-11
IMPROVEMENT TARGET: 14%, ACHIEVED: 7%

81. SYSTEM AUDIT MARKS (10 - 11)
Audit Score
Audit Points 12TH & 13TH JAN‘ 11 Achieved Max. Audit Score Achieved
Achieved
Score Score
1 Production Preparation 10 16 63%
1
2 Initial Supply Control 6 13 46% 2
2
100% 2
3 Initial Control- Changed Parts 8 11 73% 2
3
1 63%
4 Preventive Measures for defects 12 19 63% 2 73%
4
5 Education and Training 16 16 100% 0 46%
100% 63%
6 Quality audit 15 15 100% 1 100%
33% 5
9 40%
7 Supplier control 10 10 100%
8 Control of drawings and Engg Changes 4 4 100% 83%
1
6
100%
9 Inspection standard & Process Control Standard 10 13 77% 8
10 Operation Standard 11 12 92%
1
11 Observance of Operation Standard 5 5 100% 100% 17% 7
7 100%
12 Role of Manager/ Supervisor 5 5 100%
1
13 Quality improvement of process 6 6 100% 8 100%
6
14 Control of Manufacturing machine/ jig 8 9 89%
1 77%
15 Control of Inspection equipment and Jig 11 11 100% 5 89% 9
100%
16 Statistical method 1 6 17% 1 1
92%
Prevention of missing process/ wrong 4 0
17 8 8 100% 1 100%
1
assembling 3
100% 1
1
18 Control of non conforming product 5 6 83% 2
100%
19 Storage of product 4 4 100%
20 First-in , First-out 2 5 40%
21 History management of A (Safety) parts 9 9 100%
22 Implementation of inspection 2 6 33% WEAK AREAS
Total Score 168 209 80%
C/M UNDER IMPLEMENTATION

82. Nos.
0
1
2
3
4
5
2
Act 09-10
0
Apr'10
0
May'10
0
Jun'10
0
Jul'10
Aug'10 0
0
Sep'10
0
Oct'10
0
Nov'10
4. QPCR (NOS.)
0
Dec'10
ZERO QPCR RAISED IN 2010
0
Jan'11
Feb'11
Mar'11
4
Tgt 10-11
0
Act Cum 10-11
BETTER
TARGET PROVIDED BY MSILM -

83. Nos.
0
1
2
3
4
5
0
Act 09-10
0
Apr'10
0
May'10
0
Jun'10
0
Jul'10
Aug'10
0
0
Sep'10
0
Oct'10
0
Nov'10
0
Dec'10
0
Jan'11
5. WARRANTY FAILURES (NOS.)
ZERO WARRANTY FAILURES IN 2010
Feb'11
Mar'11
0
Tgt 10-11
0
Act Cum 10-11
BETTER

84. RANK
0
50
100
150
200
250
300
Act 09-10
187
Apr'10
203
May'10
212
Jun'10
249
Jul'10
220
Aug'10
221
Sep'10
209
Oct'10
210
Nov'10
209
6. VENDOR RANKING
Dec'10
223
Jan'11
Feb'11
TARGET 10% IMPROVEMENT OVER 2009-10
Mar'11
Tgt 10-11
168
Act Cum 10-11
223
BETTER

85. NO
0
3
1
2
1
Act 09-10
0
Apr'10
0
May'10
0
Jun'10
0
Jul'10
0
Aug'10
0
Sep'10
0
Oct'10
0
Nov'10
7. DI DEFAULTS
0
Dec'10
0
Jan'11
Feb'11
ZERO DI(QTY.) DEFAULTS IN 2010 - 11
Mar'11
0
Tgt 10-11
0
Act Cum 10-11
BETTER

86. Nos.
0
200
400
800
600
1000
Act 09-10
270
0
Apr'10
2
May'10
Jun'10
Jul'10 96
154
Aug'10
13
Sep'10
14
Oct'10
26
8
Nov'10
Dec'10
8. TIME DEFAULTS
134
Jan'11
280
Feb'11
CO-ORDINATION WITH MSIL TO BE IMPROVED
Mar'11
0
Tgt 10-11
Act Cum 10-11
727
BETTER

87. KAIZENS IMPLEMENTED
BETTER
25 Nos./Month
20
17 17 17
15
15 14 13
13 13
Nos./Month
12 12
10 9
8
6
5
0
Act Cum 10-
Apr'10
May'10
Feb'11
Mar'11
Jun'10
Nov'10
Jan'11
Dec'10
Jul'10
Aug'10
Sep'10
Act 09-10
Tgt 10-11
Oct'10
11
• IMPROVEMENT TGT: 50%, ACHIEVED: 62%
• NOV 2010 CELEBRATED AS QUALITY MONTH
• SPECIAL PRIZES FOR BEST SLOGAN, POSTER

88. PRODUCTIVITY PRESS SHOP
BETTER
(EFFECTIVE STROKES /MIN)
14.0
12.0
10.0
8.0 6.7 6.7 6.7
6.2 6.3 6.2 6.4 6.3 6.3 6.4 6.6 6.4
6.1
Strokes/Min
6.0
4.0
2.0
0.0
Act Cum 10-11
Apr'10
Mar'11
May'10
Feb'11
Sep'10
Nov'10
Dec'10
Jan'11
Jun'10
Jul'10
Aug'10
Act 09-10
Tgt 10-11
Oct'10
IMPROVEMENT TGT: 8%, ACHIEVED: 3%

89. PRODUCTIVITY WELD SHOP
BETTER
(SPOTS/PERSON/SHIFT)
4000
3500 3217 3269 3229 3232 3251 3259 3260 3285 3207
3044 3135 3129 3091
3000
Spots/Person
2500
2000
1500
1000
500
0
Act Cum 10-
Apr'10
May'10
Feb'11
Mar'11
Jul'10
Jun'10
Aug'10
Sep'10
Nov'10
Dec'10
Jan'11
Act 09-10
Tgt 10-11
Oct'10
11
IMPROVEMENT TGT : 8%, ACHIEVED : 5%

90. PRESS SHOP DOWNTIME
(%AGE OF TOTAL AVAILABLE TIME)
BETTER
10.0
9.0
8.0
7.0 6.63 6.26 6.35
6.31 6.30 6.13 5.97 6.05 6.30 6.14
6.01 5.93 5.84
%age
6.0
5.0
4.0
6.10 5.78 5.70 5.88 5.80 5.80
5.65 5.60 5.45 5.54 5.47 5.36 5.62
3.0
2.0
1.0
0.53 0.48 0.36 0.61 0.47 0.50 0.53 0.52 0.51 0.46 0.48 0.50 0.49
0.0
Feb'11
Jun'10
Nov'10
Dec'10
Aug'10
Sep'10
Act Cum 10-11
Act 09-10
Tgt 10-11
Oct'10
Jul'10
Apr'10
Mar'11
May'10
Jan'11
Die change time Downtime
REDUCTION TGT: 5%, ACHIEVED : 7%

91. WELD SHOP DOWNTIME
(%AGE OF TOTAL AVAILABLE TIME)
BETTER
0.50
0.40
0.30 0.27
0.24
0.22 0.21
0.19 0.20 0.20
%age
0.20 0.18 0.18 0.18 0.18 0.18
0.14
0.10
0.00
Jul'10
Aug'10
Sep'10
Jan'11
Nov'10
Dec'10
Jun'10
Act 09-10
Tgt 10-11
Act Cum 10-11
May'10
Oct'10
Feb'11
Mar'11
Apr'10
REDUCTION TGT: 20%, ACHIEVED : 14%

92. Nos.
0
1
2
3
4
5
0
Act 09-10
0
Apr'10
0
May'10
0
Jun'10
0
Jul'10
0
Aug'10
0
Sep'10
0
Oct'10
0
Nov'10
0
SAFETY- CML BAWAL
Dec'10
ZERO ACCIDENT IN 2010
0
Jan'11
NO. OF ACCIDENTS - > 1 MANDAY LOSS
Feb'11
Mar'11
0
Tgt 10-11
0
Act Cum 10-11
BETTER

93. Nos.
0
5
10
15
20
11
Act 09-10
0
Apr'10
1
May'10
0
Jun'10
3
Jul'10
Aug'10 0
0
Sep'10
0
Oct'10
0
Nov'10
SAFETY- CML BAWAL
0
Dec'10
0
NO. OF NEAR MISS ACCIDENTS
Jan'11
Feb'11
REDUCTION TGT: 50%, ACHIEVED: 66%
Mar'11
5
Tgt 10-11
Act Cum 10-
4
11
BETTER

94. Nos.
25
50
75
0
100
150
175
125
70
Act Cumm. 09-10
3
Apr'10
16
May'10
18
Jun'10
9
Jul'10
9
Aug'10
6
Sep'10
6
Oct'10
POKA YOKE
6
Nov'10
NO. OF POKA - YOKE
6
Dec'10
4
Jan'11
Feb'11
Mar'11
IMPROVEMENT TGT : 150 (CUMM.), ACHIEVED : 153
Tgt Cumm 10-11
150
Act Cumm 10-11
153
BETTER

95. %age
0
2
4
6
8
10
Act 09-10
6.33
Apr'10 6.70
May'10 5.23
Jun'10
7.20
Jul'10
6.40
Aug'10
5.22
Sep'10
5.30
Oct'10
5.04
Nov'10
5.20
ABSENTEEISM %
Dec'10
5.05
Jan'11
5.10
< 5% ABSENTEEISM TGT IN 2010
Feb'11
Mar'11
Tgt 10-11
5.00
Act Cum 10-11
5.64
BETTER

96. MPS PROJECTS
PRODUCTIVITY IMPROVEMENT ( > 40 %)
PROJECT 1  REINF COMP REAR DOOR HINGE – RH / LH (SWIFT / DZIRE)
PROJECT 2  PANEL COMP. COWL TOP – (SWIFT / DZIRE)
PROJECT 3  PANEL COMP. COWL UPPER – (SWIFT / DZIRE)
QUALITY IMPROVEMENT (>30 % BOP DEFECT REDN.)
PROJECT 4 QUALITY IMPROVEMENT BY 30% DEFECT REDUCTION IN BOP
PRODUCTIVITY IMPROVEMENT (DIE SET-UP TIME REDN.)
PROJECT 5 PRODUCTIVITY IMPROVEMENT BY DIE SET-UP TIME REDN.

97. HOW TO MEET SCM IN INCREASING
MARKET SCENARIO?
The Market Size is Increasing, as the increase in Last two Years has
been about 27%.
Alternatives are :
Increase Productivity
 Increase Capacities
Increase the number of Vendors for the same Components
Not Possible
97

98. PROJECT : 1
TO REDUCE NAGARE TIME &
QUANTITY DEFAULT
78

99. TEAM FACILITATOR
Project Team
P.K.SAHA
TEAM LEADER
D.K.MISHRA
TEAM MEMBER
SANJAY PADMAKAR DK.AWASTI SUBHASH PRAMOD
KUMAR
79

100. Reason for project selection : -
a) Excessive Nagare Time defaults.
Nagare time default status
Nagare time default status
S.no. Monthly status 10 ~ 11
08 ~ 09 09 ~ 10
April May June July Aug.
1 382 1268 461 480 201 1107 631
b) Poor performance in vendor ranking due to Nagare Quantity /
Time defaults.
Vendor ranking status at MSIL
Month April to Aug. 10
08 ~ 09 09 ~ 10
April May June July Aug.
251 306 298 292 294 290 293

101. Delivery (Quantity Default )– MSIL 2010-
40 11
35
34
0.42Default/
30 month Project
started
NO OF FAILURES
25
20
18
15
10 8
5 7
5 1 3
0
0 0 0
PERIOD
81

102. Delivery (Time Default )– MSIL 2010-11
3500
106 Default 483
3000 2900
/month Default/mont
2500
Project
NO OF FAILURES
2000 started
1500 1268 1107
3
1000
382 461 480 631 400
500
201 20
0
PERIOD

103. SNo. Reason for time default Apr. May. June July Aug Total
1 Shortage of vehicle for supply 62 79 11 143 32 327
2 Dust problem in OE PDI 32 11 23 58 21 145
Time taken to convert the part
3
from wrong to ok trolley
64 180 82 214 258 798
4 Quality prob.at PDI. 5 10 6 48 17 86
5 Material not available 76 30 19 203 76 404
Material not available in system
6
stock.
6 11 4 27 0 48
Excess time taken to unload
7
the material at MUL
13 7 12 32 11 75
8 System breakdown 76 13 13 168 83 353
Manpower not come on time in
9
morning shift
104 85 19 113 92 413
10 Plan not adhere by disp. 2 0 3 7 0 12
12 Road jam due to havey trafic 11 54 9 39 41 154
E-nagare loading problem in
13
system
10 0 0 55 0 65
Total 461 480 201 1107 631 2880