Experiences & Learnings Green Co rating Godrej Appliance -Shirwal Unit

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1 Experiences & Learnings Green Co rating Godrej Appliance -Shirwal Unit 1

2 GODREJ VALUES Integrity Trust To serve, respect Environment

3 Good and Green Policy -

4 Mission on Sustainable Growth One of the first signatory to CII initiative Mission on sustainable Growth Commitment to reduce resource intensity & emissions, discharge & waste generation by 2%- 6% every year.

5 Brings in an internal focus and awareness Sets a clear target, measure and action points on each critical area Sets a common measure / benchmark across all divisions for comparisons Makes people think differently Becomes part of the annual performance appraisal system hence brings in responsibility and accountability towards environment Involves all levels of employees- from senior management right up to the operators on the line.

6 Brings in an external focus Gives one clear measure on the overall Green Journey Sets a common measure / benchmark across industry for comparisons Helps benchmark best practices at national and international level Helps set stretched targets in each initiative Involves all levels of employees- from senior management up to the operators on the line. Gives recognition for the team and makes them aspire to improve further 3/17/2014

7 Registration of Shirwal Plant for Green Co rating-1 st Week of August Days of Handholding and Training program carried out by CII councellers-2 nd week of Sept. ( 11 th, 12 th & 13 th Sept 2013). Submission of Documents to CII 2 nd week of October. Visit by Assessors to Shirwal -29 th,30 th & 31 st October. Announcement of Green Co Gold Rating on 31 st October months from registration to certification a record

8 Strategic Focus Mindset change Enablers Total employee involvement Meticulous Planning and execution

9 10 x 10 strategy for appliance division Urbanization Rising Middle Class Green Products Megatrends Product Brand Core Categories Refrigerator Profitability Washing Machine Air Conditioner Microwave NBD Must Do Visi-cooler Deep Freezer NBD Option Play Cold storage VRF s LCA Water Purifier 2022 Revenue: Rs. 11,000 Cr. Profit: 7-8% PBT Channel Lean & Green Operations Service Next Billion Customers Brand Affinity Megatrends NBD New business development

10 Dilemma? When we initiated our drive towards greener business, the dilemma we faced was DO LEAN AND GREEN CONTRADICT EACH OTHER OR SUPPORT EACH OTHER??

11 Lean & Green overlap LEAN GREEN Min batch size Multiple deliveries Product varieties Min Inventory Reduce WIP Min. Defects Reduce usage of raw material Reduce waste Reduced changeovers Env communication End of life cycle mngt Though some factors are common to both, some factors appear to contradict each other

12 We learnt.. LEAN can be GREEN and GREEN can be LEAN When Lean is not implemented as a short term strategy for short term gains. When the scope of lean is not limited to internal environment but includes the external environment. When innovation is the approach and not improvement

13 TEI Our Approaches to Continuous Improvement - Kaizen (Small m) -CAPA -A week to a month -Process-focused -More of operator driven -Step improvements in our shop floor PMO (Big M) -Targeted improvements -One year horizon -Plant-wide involvement -X functional teams -Big incremental improvements in our fundamental drivers

14 PMO Results - Rs in Lacs To drive our fundamental driver of being lean and green

15 PMO Benefits Shirwal (For Last 3 Years) 12% 23% 51% Classification of projects 11% 13% 15% 58%

16 Kaizen results - Year No of kaizen Kaizen/ employee Employee participation % % % % P Q C D S M

17 The 7 infra structure tool a key and common tool used for driving transformation 1. Goal setting 2. Organization setting 3. Training and education 7. Diagnosis and monitoring Business Push improvement activities Pull Output 4. Promotion 5. Diffusion of success stories 6. Incentives and awards Organization infrastructure for implementing change

18 Assessment in progress.

19 Assessment in progress.

20 Green Co Gold Team with CII Assessors Green Co Platinum Team with CII Assessors

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