cases xyz

cases xyz

COMPANY OVERVIEW

XYZ., incorporated in 1975 at Cochin, Kerala State (South India), and first manufacturing plant was commissioned in the year 1977 at Perambra iri Trichur District, Kerala. it is presently India’s largest multinational Tyre Manufactu rer with operations in three Continents, Headquartered in Gurgaon, outside India’s capital city of New Delhi.

Mr. Onkar S. Kanwar is the Chairman and Mr. Neeraj R.S.Kanwar is the Vice Chairman & Managing Director of  XYZ LTD.
Manufacturing facilities : Five in India and Five Overseas.
Production capacity is around 1350 Metric tons a day.

Globally,  XYZ LTD. ranks amongst the best Indian multinationals and is one of the top 10 Tyre manufacturing companies in the world and one among the 20 Best Companies To Work With.Consolidated Turnover 2 US $ 2 Billion Manpower: Over 15000 employees across India and Overseas.

IMS Certification: Integrated Management System (‘TS16949,OHSAS18001 and lSO14001) Certified Organization. Research & Development: State—of-the-Art R&D facility in Baroda. Product Po rtfolio: Tyres for Passenger‘Car, SUV, MUV, Light truck , Truck-Bus, Agriculture, Industrial and Off the road, Retreading material and Retreaded tyres. Markets : Indian operations accounting for nearly 70% of revenues. Exports reach 70+ countries. Social Responsibility: Company has taken up the CSR activities as part of its business vision & goals. Activities conducted are HIV, Adult Literacy, Women Empowerment etc.

PROJECT SUMMARY

Tyre manufacturing process is a combination of various processes .

Business Problem Statement : Against the management expectation of 100 (indexed value), Cured Tyre defects (reworkable) for Limda Bias was running 130 (average Indexed value for the year 2008-2009).
The team followed Six Sigma methodology to arrive the final solution.
Define Phase — Project was finalized with respect to scope, objective, problem statement, project metrics and Team members.

Measure Phase – Key contributing factors called Xs are identified. Tools used in this phase are PFD ,l/O sheet, Fishbone analysis, C&E matrix, MSA and Capability Analysis.

Analyze Phase – Prioritization is done for the X5 through proper rating using the FMEA tool. Xs are categorized based on RPN. G&S analysis are conducted for the top bucket items for further funneling. Actions are taken for middle bucket items as well as the rejected Xs from 6&5 analysis.
Improve Phase — Defining equation in terms ofY as a function of X is identified through a tool called DOE.

PROJECT CHARACTERIZATION

Champion holds a list of projects which are critical to the business / organization.

Prioritization is done based on 3 major criteria
-Business/Strategic
-Manageability; and
-Good Project

Each major criteria are further classified in to three parameters with importance scale 1-10.
-Business/Strategic

1. Profitability Impact/Net Benefits -( Importance scale -10)
2. Top Line growth – ( Importance scale -7)
3. Customer Satisfaction -Internal ancflixternal-( Importance scale -8)

-Manageability

1. Time to complete the project -( Importance scale -8 )
2. Level of complexity -( Importance scale -5)
3. Resource availability -( Importance scale -7)

-Good Project

1. Data availability -( Importance scale -6)
2. Min CAPEX (IRR)-( Importance scale -8)
3. Scalability -( Importance scale -7)
Rating is done for each parameter as per the Impact rating scale ( High =9, Medium=3 and Low=1).Overall rating of the project is calculated by multiplying the impact scale with importance scale and adding all the individual ratings. Depending up on the rating and the criticality of the problem the Champion decides the project.

Overall rating for this project was 326.
Our corporate goals includes ” to create world class organization in terms of Quality, cost and productivity”
”to provide best in global standards to end customers (both internal and External)” .
OEM requires high-quality products, on—time deliveries, and competitive pricing. Increased quality requirements with increase in OEM supply made it necessary to reduce/eliminate the defects. One of our objectives is ”Zero ppm in OEM complaints” and continual improvement in ND(New Defectives). Cured Tyre defect % is considered as one of the AAOE (Apollo Award Of Excellence) parameter. -The rework %is included as one of the parameters in PCC and necessitates to meet the target.

Manufacturingf Excellence (To create world class manufacturing systems by benchmarking with global players) through Six Sigma-DMAIC approach and Customer Service (To provide best in global standards to end customers – both internal

external)are two of our corporate goals. The corresponding Unit goals are ” Improve on all Apollo Award Of Excellence

BASELINE MEASUREMENT

Please refer the attachment(2)”MSA data work sheet”

Supporting MSA Data:
Number of Appraisers -3

%Screen Effectiveness Score for entire system — 93.3

%Screen Effectiveness Vs Attribute for entire system – 93.3

%Appraiser Score (appraiser 1) – 96.6

%Appraiser Score Vs Attribute (appraiser 1) — 96.6

%Appraiser Score (appraiser 2) – 96.6

%Appraiser Score Vs Attribute (appraiser 2) – 93.3

%Appraiser Score (appraiser 3) — 100.0

%Appraiser Score Vs Attribute (appraiser 3) – 96.6

Training Details:
As the scores are less than 100% for all the operators except operator 3,
1. Imparted customized training and sharing of Best practices
2. Conducted one to one unlearning sessions and training on measurement system.

3. Operators were trained for understanding on standards.

Please refer the attachment(2)*Time series plot” for all primary metrics.

Base line is the average defect for the last 6 months before the project started.

Entitlement is the best short term achieved defect % when all the input variables in the process are centered and in

control. Details of Baseline and Entitlement of the project are shown below.

Baseline values:
Flow Crack_ – 127 (Indexed value)

Blister – 143 (Indexed value)

Cured Rubber – 157 (Indexed value)

Light Shoulder – 400 (Indexed value)
Total Defects – 130 (Indexed value)

Entitlement:

Flow Crack – 116 (indexed value)

Blister – 125 (Indexed value)
Cured _Rubber – 110 (Indexed value)

Light Shoulder – 250 (indexed value)
Please refer the attachment(2)”Capability study(initial)” on all primary Metrics

ROOT CAUSE DIAGNOSTICS

Fishbone Diagram is a method of systematically identifying all of the potential causes that may be contributing to a.
problem(effect).Fishbone diagram constructed for Flow crack defect is attached. A detailed process map is the primary

input to the fishbone.

Both Fishbone and I/O work sheet provides Xs.l./O worksheet looks very much inside the process steps where as

Fishbone looks in to outside the process also. Total Xs will be from both I/O worksheet and Fishbone and these are

forwarded to C&E matrix.

Please refer the attachment(3)for “Fishbone”
Cause & Effect Matrix (C&E Matrix ) numerically relates inputs(Xs) to customer outputs (Ys).

C&E matrix is constructed in a brainstorming session.

SOLUTIONS DEPLOYMENT

When the better results achieved continuously & consistently for 3 months; SOP prepared & other operators were given training about the change process.

There was some resistance initially from operators but when the importance of the project was explained & also the impact of the same on our washing mc business; the resistance reduced.

Also no human beings like rejections & reworks, so when some of them were also become project team members, they also contributed in finding solution; implementing different alternatives & also initiated kaizens. Person working in Mech assembly, Mr Ganesh Bobade was awarded with best kaizen award for Slip checking mechanism, low cost automation manufactured inhouse.

SUSTENANCE OF GAINS

Operators were asked to monitor the performance & also asked to maintain the control chart to gauge the process continuously.
As only one washing mc factory of Godrej similar operations can not be duplicated but when Some vendors from China visited our factory; they appreciated our Foolproof Slippage checking methodology; they also video shoot our operation to show in their factory.Also similar vibration issue is observed in compressor; so similar analysis & project carried out for compressor also.

BENEFITS REALIZED

Tangible

  • Warranty cost due to mechanical assembly reduced from Rs 32 to Rs 8.50/washer . Above project contributed Rs 23.5 /washer reduction (Total Rs 58.75 lacs warranty cost saving ).
  • Also internal rejection cost reduced from Rs 4/washer to Rs 1 /washer for mech assembly in turn saved Rs. 7.5 lacs/annum.
  • Due to introduction of new mechanical assembly BOM saving /washer is Rs 35, For 50 k washers of this type total saving achieved is Rs 17.5

lacs Other Benefit

Company could introduce new model without any investmerit with additional feature of Turbobrush (both way drum rotation “during wash) to capture additional new market segment which is competitive edge over competitors without any investment.

Intangible

  • improve morale & motivation of people.
  • Always not technology but team work helps to achieve Results
  • Involvement & commitment of all; from operators up to top management is must for achieving high target results.
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