11 th North-West QualTech Awards For Excellence in Quality

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1 11 th North-West QualTech Awards For Excellence in Quality Project Title : To improve productivity of CEPS assembly line Organization :, Executive summary Since Lean Manufacturing System (LMS) was introduced in the Indian industries, people have been looking for an effective tool kit to lead this program in own business and organization. Many of the organizations started applying the principle of Lean to eliminate wastages and improve efficiency of manufacturing organization. Though the concept of MUDA, MURI, MURA, 7QC tools, Design of Experiments & QC problem solving approach is known to Indian manufacturing industries, but use of these strong tools & techniques for improving production system has not yet gained popularity. With the introduction of LMS, has also introduced Lean Production as in its all plants. As we know that customer wish to pays only for value added activities and rest are the wastages. With this philosophy, business will be depend only on the value creation for the customer. LMS provide such tool which help organization to eliminate wastages and create Lean Enterprises. To remain in the business and be competitive in future every organization has to follow this proven philosophy of Lean. Our team worked on this philosophy as were facing a situation of how to meet customer demand without making investment on buying new machines & without investment for space requirement within short span of time as volumes increased suddenly. Team worked very sincerely under the guidance & facilitation of expert seniors who have wide experience of lean manufacturing. With the cooperation & help of the other departments like Kaizen shop, Maintenance deptt. Manufacturing Engineering deptt. etc. team succeeded to increases the production rate from no/hr to no/hr and standardized it. By achieving this we were meet the customer demand without failure. Team members used extensive use of tools like- Videos, Time and motion study, chart, Kaizens etc. Team Leader Author 1 Name : Designation : JM-3 Tel :

2 Team Members Member 1 Name : Designation : JM-2 Member 3 Name : Designation : Associate Member 5 Name : Designation : Associate Member 2 Name : Designation : JM-1 Member 4 Name : Designation : Associate Member 6 Name : Designation : Associate Instructions: Please fill only your text responses within the gray box provided under each heading. Do not paste tables, pictures or graphs in the response area. Please attach all such items as annexure with proper numbering system and attach the same in the along with the main project report. We recommend that you avoid responding with only bullet points for every subhead. Your input should be more like a narration. You can use bullets where you need to list points. The gray boxes are flexible can be resized to fit text. Please do not change the formatting within the gray boxes. (The standard font is Aerial with single spacing and the font size is 11pt) Please ensure that all paragraphs should be left aligned (not justified) Please ensure all annexures are cross referenced in the project report. For each response, please mention the process and the tools used, wherever applicable. Please ensure that the total number of pages for the project report, inclusive of annexure does not exceed 25 pages. Besides soft copy on CD, three hard copies should be submitted on A4 size paper with a 1 inch margin on all four sides. Soft copy should be compatible with MS Word-2010 All sections are not mandatory; sections marked # are optional. 2

3 Organization s Profile (Approx. 100 words.) OVERVIEW OF THE PROJECT 1) Need of the Project: - We are the single source supplier of assembly to for one of their top selling model (). Currently the demand is being cater through 2 shifts per day with 90% of our capacity. Due to sudden increase in demand and increased future projections since April 2015 we have to run production in 3 shifts. This is increasing our manufacturing cost (power Cost + Manpower cost). 2) The Solution: - In order to avoid increasing of manufacturing cost & new investment, we are left with only solution to increase line capacity by reducing Neck Machine Cycle Time (NMCT). 3) Expected Results:- By reducing NMCT up to 11%, we expect to improve our line capacity by 9% to fulfill increase demand of customer in only 2 shifts. 1. IDENTIFYING THE PROJECT (Annexure-1,2,3,4,5,6,7) 1.1 Identifying the problem a. What was the process used to identify and prioritize this problem? (Internal Rejection analysis, Audit reports, customer feedback, management reviews, Business plans, Benchmarking with competition) 3

4 In F15, assy. line % efficiency on 2 shift basis was /year and actual customer demand was. But in F16 there was a sudden increase in customer demand & future projections of F17 also increased further. In F16 customer demand jumped to /year & projections of F17 reflected as /year which are more than the production capacity of assy. line. So to meet the customer demand since April we were running extra 3 rd shift which was increasing power cost & manpower cost and affecting our manufacturing cost. (Annexure -1) b. Why is it important to solve the problem now? Due to running 3 rd shift, our manufacturing cost was increasing beyond target which affecting our top line.(annexure 2) c. How does the problem align with strategic goals of the organization? In our Business Strategy Increase Productivity is a key factor to Achieve High Profitability (Annexure-3). As per our company and plant level KMI (Key Management Indices) growth in EBIDTA (Earnings Before Interest Tax Depreciation and Amortization) is an important parameter which is directly affected by Power cost & Employee cost (Annexure-4). As per our policy 3 rd shift is always kept spare to meet fluctuation in customer demand but in our case we were running continuously with the spare shift which was directly a factor to imposing a negative impact on the growth of EBITDA. Hence this problem is directly aligned with strategic goals of the organization. d. Problem/Opportunity Statement Our assy. line customer demand increased suddenly which is more than our line production capacity. Due to this we need to run line in 3 rd shift which is against our plant standard of running lines in 2 shifts. (Annexure-5) e. Goal Statement To reduce line bottleneck cycle time (NMCT) from sec. to sec. to meet the customer requirement in two shifts till th Nov-.(Annexure-6a, 6b) f. High Level Process Flow Diagram Process flow diagram of assembly is shown as attached in Annexure Data Collection (Annexure-1,8,6a,9,10,11,12,13,14,15,16) 2.1. Description of the data collection system used to measure current performance Data collection plan 4

5 Following data were collected & analyzed. 1. Customer Demand (Annexure-1) 2. Line Layout (Annexure-8) 3. Line cycle time at current efficiency. (Annexure -6(a)) 4. Line Organization Efficiency (LOE) (Annexure-9) 5. Out of Balance Index (OBI) (Annexure -9) 6. Processes step by step cycle time. (Annexure-10,11,12,13,14) 7. NVA Non value added activities 8. VA -Value added activities 2.2. Data Analysis (Graphs, Pareto Chart, Histogram etc) 1. Brainstorming 2. Group discussion 3. YAMAZUMI chart- Related to Manual cycle time balancing study. (Annexure-15) 4.Time study (Annexure-10,11,12,13,14) 5. Motion study (Annexure-16) 2.3. Quantification of baseline performance (Metrics depending upon project type (quality, Cost, delivery): Percentage, PPM, Defects per unit, Process Capability etc. Metrics for projects related to delivery/cycle time; Process Map, Cycle time study, Value Stream Mapping, Overall equipment effectiveness) 1. Current NMCT sec. 2. Current Production per Hour (PPH) NOS. 3. Line organization efficiency (LOE) % 4. Out of balance index (OBI) - % 5. Line efficiency-% 3. DIAGNOSING THE CAUSES (Annexure-15,10,11,12,13,14,16) 3.1. Process for identification and prioritization of high level causes a. Potential Causes: Fishbone diagram In our case we used the following tools to identify the potential causes. 1. YAMAZUMI CHART (Annexure-15 ) 2. Process Sequence & Cycle time study of operators. (Annexure-10, 11, 12, 13, 14) 3. Group Discussion. 4. Motion Study. (Annexure-16) b. Prioritization: Cause and effect matrix, or FMEA, or any other prioritization tool With the help of YAMAZUMI chart we could visualized & prioritized the work which were out of Balance Index. (Annexure-15) 5

6 3.2. Root cause analysis methodology (Why-Why analysis, concentration charts, or any other method/s) 1. Time study of manual work. 2. Group discussion to identified the activities which can eliminate, reduce and overlap with other activities. (Annexure-10,11,12,13,14) 3.3. Process for testing of theories/verification of root causes (Gemba Investigations/Observations, Hypothesis testing such as t- test, Chi-Square, ANOVA, regression or any other experimentation method/s) 1. Gemba investigation and observations. 2. Data collection 4. REMEDYING THE CAUSES (Annexure-17,18,19,20a,20b,21,10,11,12,13,14) 4.1. Process for identification and prioritization of possible solutions (Brainstorming, or creativity tools, Design of Experiment, Benchmarking or any other method/s) 1. Identify & eliminating / reducing the Non value added activities through Kaizens implementations. (Annexure-17,18,19,20a, 20b,21) 4.2. Process for choosing the best solution/s (Cost benefit analysis, evaluation matrix, or any other method/s) 1. Group discussion 2. Matrix has made for judgment that which activity can eliminate, reduce or overlap with other activities. (Annexure -10,11,12,13,14) 4.3. Process for validating that the solutions work Whatever the activities identified through judgment matrix, we did the actual demo & validate that activities on Assy. Line. 5. IMPLEMENTING THE SOLUTION (Annexure-22) 5.1. Process for implementing the finalized solutions (Implementation plan, Project Management techniques or any other method) 1. Activity Plan, (Annexure-22) 2. Gemba kaizen done by CFT to achieve cycle time lower than takt time. 3. Program in PLC modified to incorporate process sequence. 6

7 5.2. How did you tackle resistance to change (Confidence building workshops, awareness/training or any other method) 1. Line associates were involved in the improvement journey. 2. They were given Group Kaizen Activity Trainings & 7 QC tools training. 3. Trainings were given about YAMAZUMI chart & basics of ergonomics. 4. Regular meetings of team members with facilitator. 5. Full cooperation from other department like Maintenance & Kaizen departments. 6. Equal hand holdings by management during the whole improvement journey. 7. Associates made all handmade chart, pictures, sketches etc by themselves. 8. Appreciation & awards to line associates & team after completion of project. 6. BENEFITS (Annexure-23) 6.1. Tangible 1. Bottle Neck Machine Cycle Time (NMCT) is reduce from sec. to sec. 2. Production per hour (PPH) increase from to nos. 3. Eliminate the shift. 4. Cost is saved % ( lac/annum). Annexure Running expenses/investment, if any (#) These all improvements were done by the in-house facilities (Kaizen Department). Investment is done less than approx. Rs. ( Thousands only) Intangible 1. Understanding the concept & application of various tools. 2. Strengthen team work. 3. Confidence increase among people. 4. Encouragement to other teams. 7. HOLDING AND SUSTAINING THE IMPROVEMENTS (Annexure-24) 7.1. Processes to ensure that the gains from the implemented improvements are sustainable (Control Plans, Control Charts, SOPs, Audits, or any other method) 1. Standardized the work by updating Work standard quality control sheet (WSQC). 2. Standardized the work element sheet (WES). 3. Update the check sheet. 4. Update the check sheet. (Annexure -24) 7

8 7.2. Plans for replicating gains in similar processes across other locations throughout the organization Next project taken on line to balance the manual work as attached. ( Annexure -25) 8. ANNEURE LIST Annexure 1 :- Customer demand Yearly projection Annexure 2 :- Manufacturing cost Annexure 3 :- Business Strategy Annexure 4 :- Plant Annexure 5 :- Demand vs. Capacity Annexure 6a,6b :- Setting the target (6a),(6b) Annexure 7 :- High level of process flow diagram of CEPS Assy. Annexure 8 :- Line Layout Annexure 9:- Line Organization Efficiency, Out of Balance Index Annexure10 :- Step by step cycle time Annexure11 :- Step by step cycle time Annexure12:- Step by time Annexure13:- Step by step cycle time Annexure14:- Step by step cycle time Annexure15:- Yamazumi chart Annexure16:- Motion study Annexure17:- Implementing the solution Annexure18:- Implementing the solution Annexure19:- Implementing the solution Annexure20a,20b:- Implementing the solution(20a),(20b) Annexure21:- Implementing the solution Annexure22:- Activity plan Annexure23:- Benefits Annexure24:- Holding & sustaining the improvements Annexure25:- Future plan 8

9 Annexure-1 : Customer Demand Yearly projection Numbers Customer Demand Yearly Projections % F-15 (Actual Demand) % increase from F15 to F17. F-16 (Projected Demand) F-17 (Projected Demand) Annexure-2 : Manufacturing Cost Rupees Manufacturing Cost Saving (%). F-15 F-16 (After Project completion) 9

10 Annexure-3: Business Strategy Achieving high profitability. An organization of energized & involved employees. Business Strategy Supplying to major Automotive OEMs in India. Overseas export of this plant products. An organization of energized & involved employees. Achieving high profitability. Supplying to major Automotive OEMs in India. Overseas export of this plant Develop future leaders through trainings & skills. Reduce/Eliminat e Losses. Competitive Price. Branding Products. Drive passion by engaging them in the improvement Increase Productivity Cutting edge technology. Internationally competitive innovation. Boost motivation by recognition & rewards. Develop new product lines. Associated partnership with OEMs. Identify Niche Markets. Win customer trust & confidence. Concurrent development of suppliers. Developing Channel Partners. 10

11 Annexure-4 : Plant Annexure-5: Demand Vs. Capacity 11

Annexure-6: Setting the Target (6a) Seconds 46 45 44 43 42 41 40 Cycle Time Requirement at % Efficiency F-15 (At present) F-16 (Requirement @ 2 shifts) F-17

12 Annexure-6: Setting the Target (6a) Seconds Cycle Time Requirement at % Efficiency F-15 (At present) F-16 2 shifts) F-17 2 shifts) Annexure-6: Setting the Target (6b) Seconds Target Setting of NMCT at % efficiency Current NMCT Target NMCT 15th 12

Annexure-7: High Level Process Flow Diagram of CEPS Assembly Annexure-8: Line Layout CEPS Inspection. Line-1 Matl. OUT FG Trolley final ASSY Fitment insp.

13 Annexure-7: High Level Process Flow Diagram of CEPS Assembly Annexure-8: Line Layout CEPS Inspection. Line-1 Matl. OUT FG Trolley final ASSY Fitment insp. & motor noise Hand Tapping Noise checking Feeling Inspection Rotational torque insp. Column Noise checking Over All inspection Impact Testing Deburring & Crimping Balancing machine Bottle neck operation Cycle time-. Bottle neck operation Cycle time-. Matl. IN Needle Bearing Pressing Coil Assy C Ring pressing Soldering and PCB cover Inner jkt. pressing Ball Brg. Pressing Capsule fitment Outer jacket pressing General Assembly Motor attachment Detection ring pressing Common CEPS assembly line CEPS Inspection Line-2 Conveyor Matl. OUT Final Assy Motor Noise & Fitment Inspection Hand Tapping Fitment Inspection Feeling Inspection Column Noise Inspection & PCBCap Attachment Overall Inspection Impact Inspection Deburring & Crimping Balancing M/c Bottle neck operation Cycle time-. 13

14 Annexure-9: Line Organization Efficiency (LOE), Out of Balance Index (OBI) Line organization efficiency (LOE)= Total no. of operators CT Bottle Neck Cycle time 100 = 100 = % LOE should be >% (As per standard) Bottle Neck Cycle time Total no. of operators CT Out of balance Index (OBI) = CT 100 = x 100 = % OBI should be <% (As per standard) Annexure-10 : Step by Step Cycle Time 50 Net Cycle Net Cycle 40 time- 30 time- Manual CT OPT-1 OPT-2 OPT-3 OPT-4 OPT-5 OPT-6 OPT-7 OPT-8 Auto CT 14

15 Annexure-11 : Step by Step Cycle Time Activity No Machine No. B-17 Start the cycle Descriptions Pick the 'O' Ring & Rocket, put on motor shaft & insert the ring through Rocket Pick the motor & put on. By adjusting both Gear Teeth Time (sec.) 4 Connect the motor connector in female connector 5 Pick two bolts from bolt dispenser & tight manually two to three thread 6 Tight the bolt by Torque Wrench 7 Marking two tight bolts by black marker for confirmation of tightening 8 Keep the components B-17 Total Cycle time of operator Annexure-12 : Step by Step Cycle Time Activity No. 1 Machine No. Descriptions Cut the packing of worm housing by cutter & remove from packing Time (sec.) 2 Put the worm. on fixture & check the torque 3 Pick the detection ring & check crimping condition, put on fixture 4 Put the worm. on fixture 5 Press cycle start B-16 6 Walking for motor greasing Total Cycle time 7 Pick the motor from bin & put on stand 8 9 Pick the greasing stick & take grease from grease container by stick Apply the grease on motor serration by rotating the motor 10 Return the Station Total cycle time of operator 15

Annexure-13 : Step by Step Cycle Time Activity No. Machine N0. Descriptions Time (sec.) Total Cycle time 1 Pick the Worm. & put on stand 2 Pick the greased worm.

Wrench 9 Mark two tight bolts by black marker for confirmation of tightening 10 Keep comp. on stand Total Cycle time of operator Annexure-14 : Step by Step Cycle Time Activity No. Machine No.

16 Annexure-13 : Step by Step Cycle Time Activity No. Machine N0. Descriptions Time (sec.) Total Cycle time 1 Pick the Worm. & put on stand 2 Pick the greased worm. & put on pad 3 Press both clamping pad 4 pick the middle shaft 5 Check the middle shaft under magnifying glass, 6 B-16 Put lower bracket 7 Pick two bolts 8 Fasten bolts manually & tight by Torque Wrench 9 Mark two tight bolts by black marker for confirmation of tightening 10 Keep comp. on stand Total Cycle time of operator Annexure-14 : Step by Step Cycle Time Activity No. Machine No. Descriptions Time (sec.) Total Cylcle 1 Pick the capsule & put on Fixture 2 Pick the Outer Jacket & put on Fixture 3 A-14 Pick the horn earth and Retainer & put on Fixture 4 Press both Cycle Start 5 Check & mark the Capsule & retainer pressing parts 6 Walk & pick the inner jacket sub assy from conveyor & back to outer jacket pressing machine 7 Apply oil on inner jacket sub assy. 8 Put the comp. on lower Fixture 9 A-16 Put the Outer Jkt on Upper locator 10 Press both Cycle Start 11 Mark the pressed component 12 Pick retainer & insert inside the tube & return Total Cycle time of operator 16

$Annexure-15 : Chart chart (Only Manual time) of common CEPS assembly line 50 Sec. 45 TARGET LINE. OPT-5 to OPT-8 have more manual work 40 35 30 25 20 M\C No. 15 B-12 M\C No. B-03 M\C No. A-35 M\C No.$

17 Annexure-15 : Chart chart (Only Manual time) of common CEPS assembly line 50 Sec. 45 TARGET LINE. OPT-5 to OPT-8 have more manual work M\C No. 15 B-12 M\C No. B-03 M\C No. A-35 M\C No. A-12 M\C No. A-16 M\C No. B-16 M\C No. B-17 M\C No. A-17 MANUAL TIME NMCT 10 5 M\C No. C-85 M\C No. A-15 M\C No. A-14 0 OPT-1 OPT-2 OPT-3 OPT-4 OPT-5 OPT-6 OPT-7 OPT-8 Manual Cycle time of Operator 1 to 8 17

Annexure-20a : Implementing the solution

IDEA SHEET Line / Area : Name of Suggestor :

identification Date of implementation After.10.

harness of motor during connection in female

18 Annexure-20a : Implementing the solution Annexure-18 : Implementing the solution KAIZEN IDEA SHEET Line / Area : Name of Suggestor : CEPS Assy. Before M/C No./ Process Name : Location : B-17 Motor attachment CEPS Assy line-1 Date of identification Date of implementation After Before situation: Need to bend the wire harness of motor during connection in female connector. After situation: Benefits: 1. Cycle time is reduced seconds to seconds. 2. Operator is reduced. 18

Annexure-20a : Implementing the solution CEPS line-1 General Assy station.

Cycle time- sec. Cycle time-sec. 1 Middle shaft inspection on general assy. station. Cycle time- sec.

Annexure-20b : Implementing the solution Sona Koyo Steering Systems Ltd. Line / Area : CEPS M/C No.

B-16 KAIZEN IDEA SHEET Date of identification -10-20 Name of Suggestor : Mahesh,Sunil, Manesh Surender,

19 Annexure-20a : Implementing the solution CEPS line-1 General Assy station. B-16 Bottle neck machine of line Moulding machine C-72 Middle shaft line Straightening machine (B-67) Cycle time- sec. Cycle time-sec. 1 Middle shaft inspection on general assy. station. Cycle time- sec. 2 Torsion bar pressing machine B-25 Activity :-Check the middle shaft under the magnifying glass. Annexure-20b : Implementing the solution Sona Koyo Steering Systems Ltd. Line / Area : CEPS M/C No./ Process Name : General Assy. B-16 KAIZEN IDEA SHEET Date of identification Name of Suggestor : Mahesh,Sunil, Manesh Surender, Ajay, Priyanka,Sanjeev Location : Front Side Date of implementation Before After Before situation: Middle shaft inspection with done at general assy. station After situation: Benefits : This activity cycle time eliminate second to. 19

20.10.20 Before After Before situation: Operator movement feet to pick the inner jacket sub assy. After situation: Benefits : Cycle time reduced seconds to seconds.

20 Annexure-21 : Implementing the solution. KAIZEN IDEA SHEET Line / Area : Name of Suggestor : CEPS Assy. M/C No./ Process Name : Location : A-16 Outer Jacket CEPS Assy line-1 Date of identification Date of implementation Before After Before situation: Operator movement feet to pick the inner jacket sub assy. After situation: Benefits : Cycle time reduced seconds to seconds. Annexure-22 : Activity Plan S.No. Activities Sept. Period Oct. Nov. WK-3 WK-4 WK-1 WK-2 WK-3 WK-4 WK-1 WK-2 1 Select Topic 2 Understand The situation P 3 Set Target 4 Analyze causes 5 Consider and implement Countermeasures D 6 Check Results C 7 Standardize and astablish Control A 20

0 Rs.. Manpower Cost Cost Saving Total Cost Saving = Rupees/Year.

21 Annexure-23 : Benefits Sec NMCT Nos./Hrs. 92 Productivity Before After Before After No. of Shift C Shift Eliminate Before After Rs.. Manpower Cost Cost Saving Total Cost Saving = Rupees/Year. Energy Cost 2. JH check sheet updated. Annexure-24 : Holding and Sustaining the Improvements 1. Line SWC updated. 3. Poke yoke map updated. 4. Work element sheet updated. 21

22 Annexure-25 : Future Plan Sec. 45 Line balancing to be improve by June- CYCLE TIME 40 NMCT TARGET OPT-1 OPT-2 OPT-3 OPT-4 OPT-5 OPT-6 OPT-7 OPT-8 Manual work is not balance of operator to. So next project is taken to balance the manual work of these stations. 22

Continuous Improvement Toolkit. Value Analysis

Continuous Improvement Toolkit Value Analysis VA NVA The Continuous Improvement Map Managing Risk FMEA Understanding Performance** Check Sheets Data Collection PDPC RAID Log* Risk Analysis* Benchmarking***