case XYS

case XYS

COMPANY OVERVIEW

XYZ. is more than 100 years old diversified reputed company. Its product range starts from home appliances, locks, furniture, cupboard to defence projects, electrical services, material handling equipments and security equipments. XYZ and XYZ Appliance Division is a ISO 9001 organisation mainly into manufacturing and selling home appliances like refrigerators, Washing machines, Air conditioners and microwaves. We have state of the art manufacturing facilities at Shirwal near Satara and Mohali in Punjab.

PROJECT SUMMARY

XYZ is one of the early signatories to Cll’s mission on sustainable growth. One of the objective is to reduce waste by

2 to 6% every year over next 10 years. We have followed 3 R Waste management approach.
1. Reduce
2. Reuse
3. Recycle

We have adopted following strategy for all these wastages:
Plastic – – Recycle – — INNOVATION
MS scrap – Reduce — improvement
Wood – Reuse (Alternate) – INNOVATION
Paper/ Poly bag – Reduce — Improvement
ETP sludge – Dispose off as per MPCB acts – Control
Waste oil – Reuse/ Recycle – Improvement
Epoxy powde r – Reduce – Improvement and new investment in technology.

We have taken different projects to work in these areas.

Reuse of Wood:
We are receiving material in wooden packing. CFT team found out one hospital using the producer gas generated after burning wood for their catering services. We have evaluated process of producer gas generation and whether it matches our oven’s heat temperature requirement for powder coating process. Results were found satisfactory, team decided to move towards generating producer gas and using it for generating heat for ovens by this waste wood and briquettes (Made from agricultural waste). We installed producer gas generation project for Powder coating ovens.

Benefits :

1. Cost saving of Rs. 4/- refrigerator (Annual saving will be Rs. 18.64L)
2. We will get Carbon credit for using producer gas in place of Fossil fuel.

We have done Benchmarking with competitors to understand market impact from customers’ perspective and also in house performance validation with plastic back plate and results were satisfactory.

Tool supplier quote us Rs. 7.5L for new back plate mold. During brainstorming session with our operators for reducing

tool cost a suggestion come to make the mold in house by converting it from old obsolete mold. After further study, we finalised to convert obsolete mold of A/C filter for making backplate.

All the modifications were done in house.

This way we were able to recycle all the plastic waste.

Benefits:

1. Able to recycle all the plastic waste generated in the factory. Plastic is scarce resource as base raw material is oil.

2. Due to conversion of steel back plate to plastic back plate we could save BOM cost by Rs. 13.6/ washing machine
(Annual saving 7.48 L)

3. Tool cost saved Rs. 7.5 L.

Key Learnings after all these Innovative Waste Management:

1. Create wealth out of waste. General perception is initiative towards envircnment costs the organisation but here we can see that with innovation we can generate money out of waste.

MAPPING THE CONSTRAINT

All our existing and new managerial practices are reviewed or finalised in the forums like the PMO (project management office), headed by our President and BEC (Business Executive Council) headed by our MD, for suitability

and continuity of business. The sources for New management practices are benchmarking studies done within and across industries, business consultants, factory visits done by our senior management and participation in seminars like

Qimpro and many others. Major evaluation criteria for review are:

1.It should give competitive edge in the market place.
2.It should align with company value system.
3.It should improve organisational learning process.
4.it should also ensure sustainable growth of the business.

We have selected our Waste Management Practices for BestPrax Prize competition.

Godrej is one of the early signatories to Cll’s mission on sustainable growth. One of the objectives is to reduce waste by 2% to 6% every year over next 10 years. As all know, Godrej is committed towards environment and well being of society as a whole. Through this initiative, we have applied innovative techniques to reduce, reuse and recycle the waste generated in our manufacturing processes.

Our Mission is ‘Enriching Quality of life Everyday and Everywhere‘.

Godrej is committed towards sustainable development of society and responsible corporate citizenship. Godrej always believes that it is our endeavour to pursue continual improvement towards the goal of environmental excellence in all facets of our business, from the forest to finished product.

Godrej is operating on certain values and one of the key values of the Godrej is Environment and conservation of
environmental resources.

BENCHMARKING PERFORMANCE

We have classified all the waste generated in plant into two different categories i.e. solid waste and hazardous waste.All the waste generated in the factory is collected at one location, accounted and disposed off as per the laid down procedure. We have defined place for all kinds of scrap. Solid waste and hazardous waste is disposed off as per MPCB guidelines.

Performance Indicator: We are measuring the waste generated as against number of appliances manufactured and we track this data on monthly basis.Yes, we had conducted the benchmarking exercise. We focused on waste management processes with a goal of identifying and observing the best practices from benchmarked firms. We have benchmarked our processes by industry visits, knowledge sharing through industry sources and by discussing with our counterparts in common forums.

In consumer durable segment, we have few industry suppliers from whom we learnt the practices followed by the
competition.Yes, we have learning’s from our business associates like suppliers, trade partners and other divisions under‘ Godrej Umbrella as well as through industry visits. Our focus was to do process benchmarking against best in industry, for instance in case of plastic disposal, we have benchmarked ourselves against leading plastic component manufacturers.

We also had some learning from environmentalist (Dr. Taitali) who is a member of our Godrej Mangrove conservation team and also from external consultants who are involved in environment conservation related activities.We have also taken help from government officials who handle waste management and monitoring. We got our premises audited through them and got the various useful inputs about practices followed by other companies.
We also got some information through net on best practices and innovative techniques applied on waste management by the companies across the globe.

MEASURING POSITIVE AND NEGATIVEGAPS

We collated and reviewed the findings from the benchmarking exercise. Following questionnaire was referred while
benchmarking ourselves with other manufacturers.
is this organization better than we are?
Why are they better?
By how much?
What best practices are being used now or can be anticipated?
How can their practices be incorporated or adapted for use in our organization?
What innovative practices are followed in the area of waste management?

Answers to these questions gave us the dimensions of performance gaps: negative, positive or parity. This gap provided us the direction for further actions — either to close the gap or capitalize on the advantages we have if any.We observed that some of our waste management methods were at par or on positive side as against the benchmarked companies.

1.Plastic disposal method = we were recycling the plastics in house as well as at our suppliers end.
2.Wood = Disposing through approved vendors.

To further improve the present methods we thought of applying innovative techniques by 100% reusing wood waste and recycling of plastic waste in house so as to differentiate ourselves.

We have clarified negative gaps based on following three criteria.
1.The effect of disposal process on environment.
2.Amount and kind of waste generation.
3.Cost factor
4.Process of disposal

Benchmarking exercise revealed following area of concern for our waste management process.

  • MS scrap
  • Used Oil
  • Used Epoxy powder

Although we could not quantify the gaps as actual data from competition was not available, but we coulc get thequalitative information regarding waste disposal process followed by other companiesunder Godrej umbrella, suppliers etc.

Our benchmark exercise was intended to find out new innovative techniques used for waste management method used by others.

BRIDGING NEGATIVE GAPS

We learnt from the practices followed byheighbouring industries, other divisions from our companies and searched information through net. Benchmarking exercise revealed following area of concern for our waste management process.

  • MS scrap
  • Used Oil
  • Used Epoxy powder

CFT team was formed to reduce the generation of above waste using quality improvement techniques. The key findings were the scrap was high due to poor process capabilities as most of the machines were _15-20 years old.

The above learnings were synthesized by way of improving processes, design changes and technology up gradations.

We REDUCED the ms scrap and epoxy powder, REUSED the wastages of oil in following ways:

We formed improvement teams to work on defect wise improvement projects. All these projects were reviewed by Local PMO (project management office) on weekly basis. With these initiatives we were able to reduce MS scrap by 50%.In case of Epoxy powder we invested in new powder coating technology which reduced the powder rejection by 60%.We invested in oil de-gasification and filtration unit to recycle the oil.

PROPELLING POSITIVE GAPS

We conducted the ideation session with Cross functional team. During our ideation session we used following
questionnaire:

  • Is there a better way?
  • Is there a different way?
  • How to optimize my resources?

Based on the brain storming exercise following ideas on RECYCLING & REUSING of waste plastic and wood were generated by the team.

  • Plastic = at present we are recycling the plastic partially in house. Part of the HIP scrap which comes out of defective doors 8: cabinets is sold to suppliers. Suggestion came to reuse this scrap 100% in house.
  • Wood = idea generated was to reuse the wood in house in the factory. However presently we did not have any application of wood in the factory.

We used brain writing 6-3-5 creativity tools for idea generation where each person will generate 3 ideas every 5 min.Participants were allowed to build on original idea.

All the ideas were collated. The Idea funnelling exercise was conducted to screen all the ideas generated. All the ideas were evaluated at 2 levels, first for pre-evaluation and another for final evaluation. All the ideas were are screened by looking at the pros and cons of each idea in order to determine which of these ideas deserve a close-up look.

Cross functional teams were given more time to look at the positive, negative and interesting aspects of pre evaluated ideas. Also we used Imagination techniques for better understanding of the idea potential and possible bugs that might impede a successful idea implementation.At the end of this exercise we came up with the INNOVATIVE idea to REUSE & RECYCLE the waste in house.

Recycling of Plastic

lnitialiy we worked on recycling of plastic waste which is dark in colour. We applied funnelling technique to short list the options. We used Evaluation Matrix to finalise best solution. Best solution finalised was to replace the metallic washing machine back plate in plastic back plate.

Some of our competitors are already having plastic back plates. Hence we implemented this change by validating it in our test labs-The proposed tooling cost was estimated to be Rs. -7.5 lacs, but our in house tooling department took a challenge and developed the tool in house by modifying one old obsolete tool.Thus way we could recycle all the plastic waste in house.

Reuse of Woods

CFT team ca me out with a revelation that one of the hospitals in city uses a producer gas which is generated after burning wood for their catering services. We used this learning of generating the producer gas and tried to emulate it for firing our powder coating oven in the plant. Our engineering team took initiative and worked religiously towards making it is success by using wood waste wood and briquettes (Made from agricultural waste). We got the producer gas generation plant installed through our vendor at our Powder coating ovens.

REALIZING THE BENEFITS

Tangible

By using innovation we could RECYCLE the plastic waste, REUSE the wood and oil waste, and REDUCE m.s.scrap.
Other Tangible benefits because of plastic recycling project is as follows:

1.By converting the steel back plate into plastic plate (made out of scrap plastics) we achieved savings in the tune of Rs. 13.6/Washing machine (Annual saving Rs. 7.48 lacs)
2.As the tool was made in house we could save the tooling cost of Rs. 7.5 lacs.

Intangible

  • The team was highly motivated with the success achieved and were ready to work on similar such projects.
  • The learnings were shared with the other employees in company who too got inspired to emulate the learnings.

All these projects gave us key learnings like

  • Use of c reativity & innovation gives unimaginable results and not the capital alone.
  • Create wealth out of waste. There is a general misconception that whenever we do something towards environment it costs the organisation but here we can see that by using Innovation we can generate wealth out of waste.
  • Problems are opportunity to use our creativity and innovation.
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