India Purchasing Update & Expectations

Transcription

1 India Purchasing Update & Expectations Manoj Solanki Public

2 India ABO Purchasing Organization Manoj Solanki Purchasing Leader India ABO Kshitija Vyas Executive Admin. Zaki Ahmad Ansari Engine Business Prafulla Neema Corporate Purchasing Vijay Inamke Tata Cummins Sharad Manjrekar Power System Sanjay Tamhankar ABO Supplier Quality Hitesh Dang Components Business Milind Kelkar NRPI/ Recon Parts Makarand Joshi DBU Guru Raj ABO PFE, VPI Vipin Kaul Indirect Purchasing Vishal Tapkire CGT Purchasing 2

3 Our Commodity Spend Total Spend : 5993 INR Cr Domestic : 4271 INR Cr Export : 1722 INR Cr Export Domestic

4 ACE Lever wise potential Ideas Maintain Low Cost Producer Status 1. Indigenization 2. Value Engineering ACE IV

5 Consistent move towards Zero-defects is necessary Commodity Wise PPM Block & Head Cooling System Forging & Bearings Assembly OHPC Al Casting Iron casting SSF PM Electrical & Electronics Hardware 29% Supplier Base is Zero PPM

6 T-P-H at all Hand Offs Why? Winning at hand-offs Journey towards zero defects What it means? Tools Process Handling Non-adherence Contribution in Quality PPM Right tools and equipment Right process for fit, form and function 14% 58% 28% Right handling for dent and damage free products Improve your internal hand-offs

7 Focus on Quality in Every Step Supplier Selection & Agreement Supplier Selection Checklist Warranty Agreements Technical Integration APQP Technical review, DQR Simultaneous Engineering DVP&R Task Supplier Development Supplier Work Plan PPAP &PCC Quality Council SPC & SPQR MSME Lean Program Ongoing Performance Management MNC / SCAR Tier II Management Plant visits, Panel Reviews SIP Embrace Six Sigma in journey towards Zero Defect 7

8 Power Systems - Indigenization Model QSK 60 16% 40% 54% 60% QSK 50 37% 48% 50% 50% QSK 23 30% 42% 45% 45% QSK 19 30% 40% 48% 48% Technological partners needed >70% Current Supplier Partners Support Cummins in increasing localization percentage 8

9 Cummins wants to partner with our innovative suppliers on our future products Future Product Needs Products impacting electrification, emissions, fuel economy, weight Next generation materials or processes Adjacent technologies interfacing to Cummins products Examples Composites Coatings Parasitic reduction technology Friction reduction technologies Processes impacting surface roughness Cooling technology Sealing technology Energy storage Telematics 9

10 Technical Education for Community (TEC) An appeal. Participate actively in TEC Donate used CNC machines Measuring equipment Any other support Insert Data Classification 10

11 Reforming our Practices :Dealing With Non Permanent Workers 1 CII Western Region Pilot Pilot project by 12 Corporates under the leadership of Mr. Muthuraman 3 Focus areas for Contract Workers:- Hygiene : Personal Safety : Training and Equipment Accident : Same Treatment Uniform Canteen Number : Linked to Business Cyclicity Temporary Worker Working Permanently!! Compensation : Comparable pay for Comparable Work Ensure Social Security Cummins a Key Participant, Has Implemented across all Plants Introspection Lead to Transformation No Conditionality of Reforms or Returns

12 Reforming our Practices : Dealing with Non permanent Workers 2 Fair and Responsible Workplace Guidelines Flexibility vital for Enterprise viability Fair Administration Enhances Employment Compliance to all rules Training / Equipment for personal Safety Ensure Social Security reaches workforce Fair and Reasonable Compensation no discrimination Numbers not driven by Cost Arbitrage Seek Acceptance and Enforcement of these Guidelines in Your Enterprises

13 29 Category Strategy Increased Collaborati on 35+ Senior Level Supplier engagement 100% Tier I Covered Transformational Strategies 8 Tech Days 128 Prototypes 50+ Supplier Work Plans 52% of Spend Dual sourced

14 Summary Export Systems, Parts GST TCL B Series Ramp Up BS IV 2017 Preparations & Leap jump to BS VI TEC Innovation Risk Manage ment ZERO DEFECT Category Strategy & SRM 14

15

16 New and ReCon Parts Purchasing Ben McGibbon June 29 th, 2016 Public

17 New and ReCon Parts Overview Aftermarket for Cummins products Central corporate entity providing service to all business units $2.7 billion annual sales 4,000 employees worldwide Parts distribution for multiple businesses 14 PDCs Remanufacturing operations 10 facilities Non-cyclical sales trend

18 NRP Purchasing Mission Statement The mission of NRP Purchasing is: Stimulating the growth of the Cummins Aftermarket business by optimizing cost, quality and delivery at all points of the product lifecycle. 18

19 The Lifecycle Curve 19

20 The Lifecycle Curve Optimize Efficiency Reduce Risk 20

21 India Supply Base Opportunity Migration of engine platforms Leading to lagging emissions markets Reduce risk and optimize efficiency Move aftermarket supply base to match production footprint Maximize utilization of installed capacity Insert Data Classification 21

22