Agile Manufacturing
by
Dr N Ravichandran
President (Operations) Lucas-TVS Ltd Padi, Chennai 600 050
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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.
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GLOBALIZATION DRIVERS
MARKET GLOBALIZATION DRIVERS • • • • COMMON CUSTOMER NEEDS GLOBALCUSTOMERS GLOBAL CHANNELS TRANSFERABLE MARKETING
COST GLOBALIZATION DRIVERS
• GLOBAL SCALE ECONOMICS • SOURCING EFFICIENCIES • STEEP EXPERIENCE EFFECT • FAVOURABLE LOGISTICS • CURRENCY RATES • FAST CHANGING TECHNOLOGY • • • • FAVOURABLE TRADE POLICIES COMPATIBLE TECHNICAL STDS. COMMON MARKETING REGULATIONS GOVT. OWNED COMPETITORS AND CUSTOMERS
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GOVT. GLOBALIZATION DRIVERS
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COMPETITIVENESS OF INDIAN MANUFACTURING
SCENARIO
NO. OF REGD. FIRMS : ORGANISED : ESTABLISHED : 1.46 CRORES 1.5 LACS 74.6% GROSS VALUE ADDED.
• INCREASED COMPETITIVE AND ENTRY OF MNCs • LARGE SCALE PRODUCT SUBSTITUTION AND & INCREASED VARIETY. CHARACTERISTICS OF ORGANISED SECTORS • HIGH COST OF CAPITAL / INFRASTRUCTURE. • HIGHLY DIVERSIFIED • NEGATIVE EFFECTS OF LOCATION POLICIES OF THE PAST. • LACK OF FOCUS ON EQUIPMENT/ LABOUR STANDARDS. • CHANGING PHASE OF LABOUR/ UNION.
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MANUFACTURING STRATEGY
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UNDERSTAND MANUFACTURING STRATEGY
DEVELOP BUSINESS STRATEGY MARKET RESEARCH PRODUCT TECHNOLOGY PRODUCT TECHNOLOGY DEVELOP PROCESS STRATEGY
SPECS / DRGS VOLUME / COSTS
MFG. TECHNOLOGY
DEVELOP MFG. STRATEGY
MAKE BUY CAPEX PLAN
PLANT MFG. FACILITIES
IMPLICATION FOR BUSINESS STRATEGY
IMPLICATION FOR PRODUCT STRATEGY
RECRUIT/ TRAIN OR RETAIN DEVELOPMENT
CREATE OR MODIFY MFG. FACILITY
PRODUCTION SCHEDULING MRP/KANBAN
PROCURE MATRLS./ COMPONENTS
COMMERCIAL PRODUCTION
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DELIVERING CUSTOMER VALUE (QCDS)
COST = PRICE PROFIT
Continuous Pressure To Reduce
(via DFA, DFM, Flow Process Analysis)
Market expects decreasing prices (year on year)
Stakeholders require increasing returns
. Fundamentally review and agree customer requirements for a specific product . Define the complete process( or Value Stream) for the specific product . Move towards continuos, single piece flow . Balance flow, effective use of resources . Continuously improve by rigorously attacking waste
` GUIDING PRINCIPLES `
OPERATING ROUTES
•W- Waste Elimination (e.g. 7 Wastes) •`- Discipline/Configuration (eg. 5S’s ) •M- Measures of Performance •P- Process Improvement •- - Standardization/ Visual Management/Simplified controls and •- - Teamwork- Trained via five start programme
MOPs
[3]
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What is World Class Manufacturing?
World Class Manufacturing is an operational strategy that, if implemented properly, will provide a new dimension to competing: quickly introducing new customerized high quality products and delivering them with unprecedented lead times, swift decisions, and manufacturing products with high velocity.’
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World Class Manufacturing Techniques
Total Quality Management Approach
Six Sigma Statistical Process Control Design of Experiments Taguchi Methods
Problem-Solving
Mistake Proofing Brainstorming Cause and Effect Pareto
Workplace Organisation CANDO/5S Visual Management Teams
Lean Production System Design
Level Production Supplier Pull System Cells & Layout Quick Changeover Standardised Work
Quality Focus
Delivery Focus
Mistake Proofing
Mistake Proofing
Problem-Solving
Problem-Solving
Early Equipment Management Reliability Centred Maintenance
Total Productivity Maintenance Approach Cost Focus
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Po licy
ent ym plo De licy Po
Autonomous Maintenance Planned Maintenance Quality Maintenance OEE Analysis
De plo ym en t
APPROACH
EVOLUTION OF LEAN PRINCIPLES
NC ERA DYNAMIC WORLD
LEAN ENTERPRISE
CIM
1800
1850
1900
TAYLOR’S SCIENTIFIC MGT.
1950
1970
1980
2000
ENGLISH SYSTEM
AMERICAN SYSTEM
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THE ZERO WASTE GOALS
The Lean Management System synthesizes these nine areas of waste into a set of zero-waste goals, one for each of the nine key areas in which the company measures its progress: 1. Customer focus 2. Leadership 3. Lean organization 4. Partnering 5. Information architecture 6. Culture of improvement 7. Lean production 8. Lean equipment management 9. Lean engineering
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Zero customer dissatisfaction Zero misalignment Zero bureaucracy Zero stakeholder dissatisfaction Zero lost information Zero wasted creativity Zero non-value-adding work Zero failures, zero defects Zero lost opportunity
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THE NINE KEYS TO DEVELOPEMENT
Customer focus
1 STRATEGY
2
Leadership
6 Lean Organisation 3 Partnering 4 STRUCTURE STRENGTH
Culture of Improvement 7 Lean Production 8 Lean Equipment Management Lean Engineering
Information 5 Architecture
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The right climate
• Since mid 80s, many changes have been successfully implemented – Lean Manufacturing, Use of IT and New product development The positive attitude of our employees to these changes has resulted in many improvements • • • Employees are not only willing to accept changes but are beginning to initiate them TQM is seen as a part of this change process “Change” has become a way of life at Lucas – TVS
OPENING UP OF ECONOMY
•
PRODUCT DEVELOPMEN T CAPABILITY
WORLD CLASS MANUFACTURIN G CAPABILITIES
TOTAL EMPLOYEE INVOLVEME NT
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TQM Journey…
Introduction Phase
• Total Employee Involvement • Introduction of SOP (Standard Operating Procedure) • PDCA approach for Improvements • Process for New Product Development
Promotion Phase
• Training to improve Problem solving skills • Task force / Cross functional team approach to improve Quality • Involvement of Suppliers in TQM • Introduction of Policy Deployment
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TQM Journey
Deployment Phase
• Strengthening of Policy Deployment process to enable company wide alignment • Strengthening Product development process – (e.g) Design Standards • Daily Routine Management in indirect areas • Strengthen TEI (Total Employee Involvement) (e.g) Work Teams
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MISSION & VISION
MISSION
To be a respected supplier in the global auto industry, by developing innovative products and solutions of value to customers through creative skills and involvement of employees, suppliers and dealers and use of contemporary technology
VISION 2010
• To be the supplier of choice of all leading vehicle manufacturers in India • To be a recognised OE supplier in Asia Pacific and Middle East markets • To achieve global recognition for its innovative approach to products and solutions • By 2010, sell Rs. 1400 Crores ( USD 300 Million) of products and solutions with a third to customers outside India
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New Product Development Process
New product development is carried out through the following stages
Customer Enquiry
DR2
DR0
DR1
PRODUCT PROPOSAL
PRODUCT CONCEPT
DETAILED DESIGN
PROTOTYPE TESTING
DR3
INITIAL PRODUCTION
DR4
REGULAR PRODUCTION
LP Motor
NPD IDEA QFD Bench Marking DFMEA PFMEA 3D Analysis Preliminary Control Plan QCPC Design Standard Technology Development Supplier Involvement
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Rapid Prototype Fit & Function Validation / Reliability Testing PFMEA Manufacturing Planning Supplier Development
Training Process Capability APQP Control Plan QCPC SOP Run at rate Trial Production Production Test Validation
Monitor Field Performance
DR5
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Technology…
2. Product Technology Development • Established design standards • Reliability Engineering – FMEAs are used extensively, Overstress tests and accelerated tests in product proving • Development of future products through Advance Engineering • 3D modeling and visualisation • CAE – analysis of Mechanical stresses, electromagnetic and thermal behavior – Design optimization • Manufacturing process simulation
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Fatigue life of fixing bracket
Solenoid switch Stator lamination
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Technology
3. Process Technology Development
Design automation
• Reduction of data access time by using Product Lifecycle Management (PLM) • Reuse engineering data
Design automation PLM – Product lifecycle management
• • • • • •
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Standardised work processes Single repository of engineering data Work flow with escalation facility Project management Viewing of CAD data company-wide Collaborative work environment
PLM
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Methodology
Cellular (Lean) Manufacturing
Flexible Manpower
Autonomation Jidoka
Standardised operations
STEP-4 Levelling
STEP-5
Maintenance and Safety
Visual Control
Change Over
Multi -process Operations
Quality assurance
STEP-3 Flow Manufacturing
Kanban
STEP-2 The 5S for Factory Improvement
STEP-1 Awareness revolution: prerequisite for Factory Improvement
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E- Kanban [2- Bin system]
Kanban
This is applicable for all ‘C’ class items. There are two bins in the line . The moment one is empty the Material Handler picks-up the respective card on post it in the Kanban box kept in the Purchase office. The Purchase officer swipes the card [bar-coded] and it is instantaneously published thru RASIS [ EDI] to the supplier terminal. The Supplier responds immediately confirming the Supply date. The card goes back along with filled tray.
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1963 - 85
•Process type Layout
Inflexible Manpower
One man – One machine
Flexible Manpower
1985 - 95
•Product type Layout •Nagare Cells
Partially Flexible Manpower
One man – 3 Machines
1995 - 2002
• SPF Lines • Linking Cells
Flexible Manpower – BUs
2002 - 05
• Large Cells • Chaku-Chaku • Kanban
Totally Flexible Manpower – All Functions
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People…
Culture
• Satisfied customer is the basis for growth of our business • Motivated and well trained employee is its foundation • HR process is driven by Trust and Goodwill • Continuous improvement - A way of life
Policy
• To continuously upgrade skill, morale and customer consciousness of employees
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Support to Community
Environment • Certified ISO 14001 company • Total elimination of Hazardous chemicals, Cyanide, Trichloroethylene • Policy to promote green belt in the plant and neighbourhood Education and Vocational Training • Created a centre for Quality Management with Anna University • Helped setting up a vocational center for advanced training • Funded in setting up a flexible manufacturing systems lab at IIT, Chennai Society • Contributes significantly for Public causes like Health Check-ups, Eye camps, Dental camps, Old age homes, hospitals, temples etc.
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Green Belt
Vocational training- CVAT
Community health care camp 24
BENEFITS ACHIEVED SO FAR IN LUCAS-TVS
[Base 1998-99] 180% 258%
PRODUCTIVITY
100%
Customer Line Rejection MANPOWER INVENTORY WIPM/c Breakdown SCRAP SPACE
Sales / Employee
35%
2.4% 62% 50 ppm
40%
61%
12%
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Our Journey continues….
• QFD • Tech. mapping • Reliability Engg.
• Concurrent Engineering • Structured design reviews
• NPD process standardisation • Zero defect design programme
Various Customer Awards
TQM Journey
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THE WOODS ARE LOVELY, DARK AND DEEP AND I HAVE PROMISES TOKEEP AND MILES TO GO BEFORE I SLEEP AND MILES TO GO BEFORE I SLEEP
- Robert Frost
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