"THE EFFECTIVE IMPLEMENTATION AND PRACTISES OF WCM" with special reference to Harihar Polyfibres

CONTENTS

1. INTRODUCTION AND DESIGN 2. GRASIM INDUSTRIES LIMITED - A PROFILE 3. WORLD CLASS MANUFACTURING 4. WORLD CLASS MANUFACTURING METHODOLOGY 5. WCM MODEL 6. IMPLEMENTATION OF WCM IN HARIHAR POLYFIBRES 7 SURVEY ANALYSIS AND FINDINGS, SUGGESTIONS AND CONCLUSION 8 FINDINGS AND SUGGESTIONS AND CONCLUSION

ANNEXURE Questionnaire

Bibliography

CHAPTER 1

INTRODUCTION AND DESIGN

INTRODUCTION SCOPE OF THE STUDY OBJECTIVES OF THE STUDY METHODOLOGY OF THE STUDY LIMITATIONS STATEMENT OF PROBLEM CHAPTER SCHEME

INTRODUCTION When it comes to providing well-built product the company's strength lies in its people. They represent a vast fund of knowledge, experience and creative ideas resources that meet or create demand in the market.

MEANING OF WCM (World Class Manufacturing)

WCM is an insight into the concept of equipment ownership, maintenance, visual management and how these help one he in is gaining handling, knowledge using and about the

equipments

operating,

maintaining etc.

WCM helps in reducing or eliminate abnormalities wastes and looses by knowing the tools and techniques and by identifying them.

WCM is defined as "the process of ultimately gaining the common goal and achievements of the company by knowing appropriate ways to keep the environment in the best possible way to get the best out of the best plants".

SCOPE OF THE STUDY

Since the study is an attempt to examine the present status of WCM program by critically analyzing the concept of WCM it forms a link between what has been established and what is being implemented. The scope of the study is limited only to the management, staff and workers of Harihar Polyfibres. This study provides a theoretical framework to understand the basic concepts of WCM.

Since the study, is an attempt to examine the present status of WCM function by critically analyzing

some of the WCM practices in the unit it forms a link between what has been established.

The study has taken into account to assess those efforts that have been taken by Harihar Polyfibre to achieve WCM standards.

The review of WCM climate seeks to click the perception of the people and hence reflects their feelings and attitudes towards the WCM program. This' may be used to set right the weakness and capitalize on strength.

The analysis and objective feedback can in turn lead to fruitful action plans to further strengthen the WCM efforts in the organizations.

OBJECTIVES OF THE STUDY

1. To study and understand the concept of world-class manufacturing. 2. To study the implementation of WCM in HPF.
3.

To study overall effectiveness of WCM and impact of WCM practices towards changing the mindset,

culture and passion of employees. 4. To study the communication and training through the WCM practices 5. To highlight the importance of WCM in the context process industry. 6. To identify the reason for increasing emphasis on WCM.

METHODOLOGY OF THE STUDY The study is based on survey technique. The study consists of analysis about W CM at HARIHAR

POLYFIBRES. For the purpose of the study 18 employees were selected, their views were selected, and their views were solicited on different parameters.

The methodology adapted includes, Questionnaire Random samples survey of employees Discussion with the concerned employees Personal interviews and informal discussions were held with some Employees to ascertain the impact practices of WCM in the unit.

LIMITATIONS

The study is limited only to Harihar Polyfibres division only. The other unit [grasilene] could not be covered due to time constraint. The sample size was constrained by the time available for the study.

W CM is a vast concept and a relatively new one. It varies from organization to organization and so it is not

possible to include each aspect.

STATEMENT OF PROBLEM There is no field of management that will not benefit from systematic and purposeful research. The field of WCM is in great need of systematic knowledge and sound principles. This is a new area, which has come to this country after being successfully implemented in western manufacturing units or sectors. A separate entity is needed within an organization in order to align the people towards a common goal that is unified with the cooperation strategy unless

employees ask new questions they shall not get different results only the companies that are high on performance as well as practice can become world class. This is where WCM cell appears. There is no end to improvement and here WCM is the next step towards manufacturing excellence. WCM program represents a unified theory

compromising principles, methods, tools and system that

10

are applicable to all the manufacturing units. It enables the chief executive officers [CEO's] to induce new thinking in the employees at all levels. Many of the organization in order to fulfill their objectives have instituted various systems and

programs. While constitution and implementation of systems and program is important, it is also necessary to critically examine whether these mechanisms are

actually fulfilling objectives. CHAPTER SCHEME CHAPTER 1 Introduction and Design of Study. CHAPTER 2 Grasim Industries Limited A Profile

CHAPTER 3 World Class Manufacturing. CHAPTER 4 WCM Methodology CHAPTER 5 WCM Model CHAPTER 6 Implementation of WCM in Harihar Polyfibres Division of Grasim Industries Limited. Kumarpatnam. CHAPTER 7 Survey Analysis and Findings, Suggestions

11

and Conclusion

CHAPTER - 2 GRASIM INDUSTRIES LIMITED - A PROFILE

HISTORY OTHER UNITS OF GRASIM INDUSTRIES LIMITED ORGANASATIONAL OBJECTIVES SOCIAL OBJECTIVES ECONOMIC OBJECTIVES AWARDS AND ACHIEVEMENTS

12

HISTORY HARIHAR POL YFIBRES, a unit of GRASIM

INDUSTRIES L TO, is situated on the bank of river Tungabhadra at Kumarpatnam near Harihar in Karnataka state. The unit was established in the year 1972 with indigenous expertise, engineering and technology to manufacturing rayon grade pulp. Today Harihar

Polyfibres is one of the largest rayon grade pulp manufacturers in India.

Grasim Industries Ltd; Kumarpatnam, a member of Aditya Birla Group was incorporated on August

25,1947 in state Madhya Bharat exactly 10 days after the country got independence over these years, the company has leading industrial conglomerate and is at present ranked amongst ten largest companies in Indian private sector in terms, turnover and profits.

13

Grasim is highly focused Industrial conglomerates addressing the country's need for clothing, housing and construction. Having fifteen division spread allover the country, Grasim has nine joint ventures also, out of which four are in India and five abroad. At Harihar, Grasim has two divisions namely,

HARIHAR

POL

YFIBRES

(PULP

DIVISION)

GRASILENE DIVISION (FIBER DIVISION) Harihar Polyfibres started in 1972 with a production Rayon Grade Pulp.

Grasiline is a small unit started in the year 1977 with a modest production level of 12 tons per day of Viscose Staple Fiber [VSF] now it has increased to 200 tons per day of Viscose Staple Fiber [VSF].

Grasim is the dominant VSF manufacturing with about 62% market share in India. Viscose Staple Fiber is

14

one of the most versatile textile industries. VSF is the closest man-made substitute for cotton. Due to its durability and cluster, its valuable property of moisture absorbency makes it ideal for any topical country like India.

Demand for the versatile fiber has increased steadily over the year, largely because of its inherently superior characteristics as well as for the advantages of economy.

Grasim the group flagship companies headed by son of late Mr. Aditya Vikram Birla Shri.

Kumaramangalam Birla. Birla is the largest manufacturer of VSF in the world. Grasim is a part of the Aditya Birla Group, which includes its foreign interest, is the largest industrial group of India. This multinational conglomerate headed by Shri. Kumaramangalam. Birla include nearly 25 companies. These are located in India, Thailand,

15

Indonesia, Malaysia and Egypt and operate in a wide range of product fields.

The Aditya Birla Group is India's second largest business industry with a turnover of RS.220 billion. A asset base of over Rs. 1.68 billion. A premier conglomerate of India's leading co's including Grasim, Hindal co, India Rayon and Indo Gulf. Leadership position in key business with strong

competitive edge.

OTHER UNITS OF GRASIM INDUSTRIES LlMITED

Stapler Fiber Division Nagada. Chemical Division Nagada. Engineering and Development Division, Nagada. Weaving Division Gwalior. Bhiwani Textiles Bhiwani. Cement Division Jawad (MP). Vikram Ispat (sponge iron) Raigarh (Maharastra).

16

Cement Division Raipur. Pulp Division, Mavoor-Calicut. Birla Software Consultancy, Bombay. Birla International Marketing, Delhi.

ORGANASATIONAL OBJECTIVES The term organization refers to any group of people, working physically together to achieve a

common objectives. For a group to be termed as organization it has to fulfill two important conditions, Quantitative criteria Qualitative criteria

Quantitative specifies that the number of persons should be minimum two and qualitative specifies that the objectives to be achieved should be common and clearly understood by all groups and they should be geared to work towards that.

17

Any organization whether small or big, whether domestic life or commercial enterprise has to achieve two types of objectives, namely social objectives and economic objectives.

SOCIAL OBJECTIVES Social objectives refer to the reputation and image; the organization has got in the society. This can be termed as the people factor. These can be satisfied through the full satisfaction of the customers, suppliers, employees, neighboring society and government.

Customer except a quality product at a price affordable and a high level of reliability of delivery schedule of the organization. To maintain a steady growth in the business through the association of suppliers with the organization.

18

There must be continuous development through training development in their career and image in the society by working in the organization.

It

should

be

pollution

free

atmosphere

with

improved facilities, welfare measures etc to keep the neighborhood clean and tidy.

By satisfying the social needs the organization can build a positive image in the location where it is functioning.

ECONOMIC OBJECTIVES Economic objective refer to the financial status of the organization in its effective working. This can be termed as productivity factor. The returns in terms of profits for the investments decide the economic stability of the organization, which is in the control of the management.

19

For the basic survival and subsequent continuous growth of the organization, making a good profit becomes an important need. Even for meeting many of the social obligations, the organization requires financial stability.

By proper blending of the social and economic objectives, the organization must maintain a good health, which becomes very important need for its survival and growth continuously. The growth of the employees lies in the growth of the organization in which they are working.

20

AWARDS AND ACHIEVEMENTS Year 1995 Awards and Achievements Award for outstanding contribution in the field of labors relations by IMC, Mumbai. Certificate conferred on the unit of implementing 1998 Environmental Management system [EMS] in accordance with ISO 14001 standards by RU L TUV, Germany. 2000 The Aditya Birla Group Award for the Manufacturing Excellence [Bronze Medal]. Certificate conferred on the unit of implementing 2001 Quality Manufacturing System in accordance with[150 900/2000 revised standards by RUL TUV, Germany 2001 A certificate for obtaining ISO 9001 certification.

Certificate conferred on the unit of implementing 2 0 0 1 Health and Safety Management System [OHSMS] in with OHSAS: 18001 standards by RULlUN, Germany Environment Protection case study ranked 2nd out of 2 0 0 2 88 aspirants as national level by TERI and published in financial express of 4th April 2002.

21

Greentech Gold Award for outstanding achievement 2002 in the field of industrial safety by Greentech foundation, New Delhi The Aditya Birla Group Gold Award for Manufacturing Excellence and competitive advantage.

2002

22

CHAPTER - 3 WORLD CLASS MANUFACTURING

INTRODUCTION Group Vision of Grasim Group Mission of Grasim Objectives of WCM WCM Policy WCM goals

23

INTRODUCTION

World

Class

Manufacturing,

relatively

new

concept especially in the India Industrial scenario has become the mantra for the survival in the Industrial sector today. The unprecedented uncertainly

accompanied with a dizzying rate of changes have paved way to the concept of the World Class Manufacturing.

What really is WCM? WCM is a concept of manufacturing in which products conforming to the World-Class standards are manufactured at the last possible costs. In other words, WCM is a unique strategy for enterprise excellence through focus on manufacturing.

Thus, WCM is an acceptable way of managing business to gain competitive advantage thereby

24

ensuring long-term success meeting the needs of the customers, employees, financial and other stakeholders and the community at the large.

All these definitions reveal that WCM is a long-term structured approach which is cyclical [plan, do, check, act-PDCA] comprehensive and systemic and which

involves cultural transformation of the people, process and results on a continuous basis leading to

organizational change. Better management processes and results on a continuous basis leading to

organizational change. Better management processes and organizational learning.

WCM strives for zero loss culture coupled with high standards of quality and productivity. It is basically a team based management system relying on the,

"Art of manufacturing for consistent excellence"

25

"Group Vision of Grasim" "To establish ourselves as the first choice of all stakeholders (as the first choice of all) including

customers and employees in this board less world"

"Group Mission of Grasim" To raise the standards of our QCDIP performance to the world class levels"

Objectives of WCM WCM concept was developed to gain competitive advantage in changing and uncertain world of rapid technological advancement. The major objectives that the organization would pursue under the shade of WCM concept are:

Improve the bottom line of the company. Building high performance teams.

26

 Create a congenial workplace and develop a sense of ownership. Develop highly skilled, motivated, self-reliant

workforce through effective training and re-training. Achieve zero breakdowns, zero losses and zero defects through continuous focused improvement. Ensure a clean work environment free from accidents and pollution.

WCM Policy

To achieve utmost satisfaction of our customers and other stakeholders through sustained excellence in all our activities at GRASIM, KUMARPATNAM BY

IMPLEMENTING World Class Manufacturing program to deliver. Zero defects. Zero losses.

27

Zero breakdowns Zero pollution. Zero accidents.

WCM goals

Build high performing teams. Create a congenial work place and develop a sense of ownership. Develop highly skilled, motivated and self-reliant workforce through effective training and retraining.

Achieve zero breakdowns, zero losses and zero defects through continuous focused improvement.

Ensure a clean work environment free of accidents and pollution.

28

CHAPTER - 4 WORLD CLASS MANUFACTURING METHODOLOGY

Form the teams Equip the teams Visual Competition amongst the teams Pillars of WCM

29

Introduction

Whether you are establishing a new business or transforming the existing business into a new one, it requires certain procedures or methodology to be followed. Implementation of WCM also follows a specific methodology to make the organization competitive for facing the challenges of tomorrow and for achieving the results. WCM methodology is based on the principles of Olympics. It broadly comprises of three steps:

Form the teams Equip the teams and Visual competition amongst the teams Step One: Form the teams: The whole business is divided multi into skilled, small self-

overlapping,

cross-functional,

30

competing

high

performance

teams

covering

all

employees. These operating teams assume ownership of their QCDIP performance, the teams focus on the eight dimensions of WCM. For specific major improvements project teams are also formed, consisting of specialist from different functions, depending on the need. Step Two: Equip the teams: The teams are equipped with mindset and skills in using all the arms and ammunition of WCM. They are also trained on the rules of the game in the form of values and mindset for excellence. Specialized inputs are also provided through workshop such as JIT, SPC, PM analysis and other advanced problem solving

techniques. Step teams To inspire and bring the best out of the wellThree: Visual Competition amongst the

31

equipped team's competition is necessary. The third step is creating visual competition amongst the teams for improving the QCDIP score. WCM strives for 100% rating for each team by their customers external as well as internal. The factory is first divided into zones with a zone leader assuming the ownership and responsibility of that area. The employees in zones are divided into teams of 5 to 20 members; each with a team leader. Each team is assigned ownership of a specific area with in the zone.

All the employees are included in over lapping structure and all the areas are covered in this process. A two-day conference cum workshop is organized to expose all the employees to the concepts and practices of WCM and to establish a common language. These educational programs equip all the employees with the required concepts, tool and techniques for implementing WCM systems.

32

In the final step, the teams become self-motivated, all round quality focused and customer driven and complete with one another with the killer instinct to inspire performance.

Benefits through WCM

The

entire

concept

of

WCM,

adopted

on

sustainable basis can do wonders for the organization. An organization can encompass the WCM program to promote excellence in manufacturing as a means of delighting its customers, employees and other

stakeholders on a sustainable basis.

These transformation programs shall lead to be culture, which is:Based on minimum resource

requirements, be it equipment space or people.

33

Prudent

when

it

comes

to

spending

money

including buying or hireling external services.

Highly productive with efficiency levels comparable to the world standards.

Devoid of waste in any form.

Geared towards achieving "zero breakdowns, zero losses, zero defects and zero accidents".

Market

driven

always

exceeding

customer

expectations. Innovative in terms of products and processes.

The pride of its employees and vendors. Pillars of WCM "The WCM approach is not a program it is the art of managing through teams and achieving transformation 34

whenever needed".

Team based management systems are effective, teams take the ownership of the process and give the best out of them when they are inspired and through competition. Each team thus attempts and tries to excel in terms of quality and quantity cost, delivery,

innovations and intellectual capital, productivity.

This

is

an

ideal

work

environment

including

equipment condition and operating process, which is free from abnormalities.

Thus,

the

entire

concept

of

WCM

can

be

implemented through teams broadly classified as:-

The enablers are those who promote exceptional performance from the people and the process by performing the following functions. Establish vision,

35

mission, policies and strategies.

Facilitate and environment conductive for learning and innovation. Encourage breakthrough

improvements.

Inspire superior all round sustainable performance.

Processes:

people and process involve in the key

manufacturing focused areas.

The process is the means by which the organization harnesses and releases the talent of people to produce sustainable superior results.

Success: - which are measured through the results of external and internal satisfaction, social satisfaction and business results.

36

CHAPTER - 5 WCM MODEL

Eight Dimensions of WCM

37

WCM MODEL

The eight dimension of WCM are, Waste elimination Work environment JIT and stock reductions Equipment effectiveness / total productive maintenance. Customer delight - internal and external Quality first: SQM and best practices. Liaison and understanding Information systems, technology and cash flow.

1. Waste Elimination Waste is any element of the manufacturing process that adds cost without adding value to the product. Waste not only costs money, it also extends the leadtime for building the product and delivering it to the customers. It also keeps the company from doing more productive thing with its resources. Wastage is a factor eating the profits of any organization and contributing to

38

environmental pollution. The competitiveness of an organization depends on its ability identify and weed out wasteful practices from across the business as "All the non value adding are waste". Waste / muda are usually found during.

The time of excess production :- Excess production occur when companies create products or WIP for which they don't currently have orders, resulting in wastage of additional space, payment of wastages for un needed work, incurring more material handling cost.

In waiting: - Resources remaining idle while waiting for instructions, tools, materials, power etc. is a waste and must be avoided.

"Inventory is an evil":- inventory is an accumulation of products, WIP or materials at any stage of process. Waste in inventory is often a huge source of waste in the 39

organization. It ties up people, equipment, materials and energy that could be used for productive work.

In conveyance: - means delay in moving components or products in process from one place to another or even people from one place to another, to get things done. Most operations involve series of delays. Plant layout may make long distance transportation necessary; they may result in multiple handling of parts. This can be over overcome by substantially simplifying the process layout by eliminating many stages in process as possible.

In motion: - every motion, which is unnecessary means lost time. The successful approach is to try to eliminate the need for movement in first place. In work place, considerable wastage in motion can be eliminated by organizing the tools, materials etc.

In defects: - defects and processing are unnecessary

40

and expensive. Defects also result in delay somewhere in the system and create new waste through rework. Elimination of defects through reliability of strengthens the process suppliers, materials, operation; equipment may be practiced for substantial reduction in defects.

Muda also exists in communication, procedure, unnecessary Processing, untidiness, timing, bottlenecks etc.

Waste is non-value adding activity so it becomes very essential to pursue a war-like approach to identify and eliminate waste. Thus following implementation work is undertaken: Formation of sub committee. Training workshop is conduced. Replication of workshop for all employees. Identification of types, of waste in respective work areas and elimination through structured system.

41

Benefits through waste elimination Savings in resources such as people, machine hour's space, materials. Savings in energy, water, power etc.

Elimination of unnecessary paper work / duplicate process. Reduction in inventory, rework, reprocessing and rejections. Reduction in searching / waiting.

Key performance indicators Percentage of waste identified / eliminated. Savings achieved through waste elimination

2. Work environment Work environment / 5s stands for good house keeping concept which is the basis for continuous improvement vital for organization effectiveness. As good hose keeping and work place organization are

42

directly linked to achieve displace in manufacturing there should be perfect co-ordination between these activities. Good house keeping and work place

organization results in better compliances to schedules, fewer machine breakdowns, and low defect rates and promote exposure of problem areas. Besides a clean and healthy work place, it inspires people to give their best and fills them with pride. 5s aims at establishing an environment, which is, Eliminates wastes Promotes wastes Ensures quality Is self-sustaining Improves effectiveness Prevent breakdowns Improves safety Makes an employee feel proud of his work place.

A step-by-step systematic approach of 5s can be

43

employed for a clean and healthy working environment on a sustainable basis. The principles of 5s are as follows:

1s Seri (sorting):- this step distinguishes necessary and unnecessary items and elimates the unnecessary ones in a systematic procedure / manner.

2s seiton (arrangement):- step determines the type of storage system and lay required for easy accessibility and retrieval of the necessary items. The mantra of this step is "A place for everything and everything in its place". Usage of item coding and location coding along with visual controls makes it highly effective.

3s sieiso (cleaning):- eliminate dirt, dust and other foreign matter through periodic cleaning of work place. It prevents accidents and unexpected failure of equipment.

44

4s seikestn (standardization) :- creating of systems and standards covering the entire organization so that the neatness / cleaning is continuously maintained extensive visual controls form integral part of this step for exposing abnormalities.

5s shitsuke (discipline):- ensures that everyone practices 5s religiously. This emphasis on creating a work place with good habits and self-discipline.

The

5s

principles

are

implemented

in

the

organization by: Formation of sub committee. Training workshop conducted. Replication of workshop for all employees. Audits carried out-self-audit and top management audit. Competition amongst various teams / zones. Reorganization and rewards.

45

Benefits Workers Work effectiveness Vital working atmosphere Cheerful/good mood Safe environment Higher work efficiency pride Key performance indicators Savings in team's space. 5s index. Monetary savings. 3. Just in time and stock reductions: [supply chain management! lean manufacturing / agile manufacturing / quick response manufacturing]. Organization Increased production efficiency Reduced unnecessary stock Low production cost More space and storage area obtained Confidence and recognition

In today's competitive world, companies no more 46

compete based on their product / process or excellence in anyone function but based on the supply chain strength. The ability to respond with speed requires on organization to be flexible, adaptable, devoid of

bottlenecks, simple systems and continuous focus on eliminating non-value added activities. JIT producing desires variety by keeping costs low quality high and lead-time minimal.

JIT is an approach of management where there is focus on creating a reliable and responsive supplier customer relationship throughout the supply chain. JIT idea is simple, produce and delivers finished goods just in time to be sold, sub assemblies and purchase materials just in time to be transformed into fabricated parts. JIT focuses on eliminating wastage, enhancing quality and cutting down scrape, a streamlined plant operations that raises process yield, a production line balancing approach and employee involvement and

47

motivated mechanism, JIT approach means challenge the following :Set up time Batch size Process cycle time Planning system Material handling and All existing practices.

Through manufacturing

time

is

an

important

indication

of

Effectiveness and organizational responsiveness. JIT approach focuses on "time compression" to help in achieving throughout time reduction. The real goal can only be achieved when JIT is working throughout the length of the entire supply chain.

Some

key

activities

required

for

effective

implementation of JIT are,

48

Manufacturing cycle time: - the non-value adding activities significantly add to the cycle time. Identifying and elimination of all the non-value adding activities should reduce production and delivery lead-time. the ideal cycle time consists entirely of value added activities. Application of process mapping is to identify areas that do not add value but add time, cot and evolve action plans to eliminate them.

Single minute exchange of die / quick change over lame: - lots production often means large inventories and all the problems, wastes and costs associated with them. JIT manufacturing requires of process items in small lots. To produce economically in smaller lots, time required for change over must be reduced. The SMED approach gives a three stage for shortening set up time. These three stages are Separate internal set-up from external set-up.

49

Convert internal set-up to external set-up. Streamline all aspects of set-up.

Enhancing supplier's reliability:- the focus is on rationalization of suppliers to concentrate on developing partnership relationship with them. Mutual co-operation and technical assistance to suppliers helping converting them to reliable suppliers who can then be as good as co-makers systems for vendor rating and feed back give the transparency required to build relationships with the suppliers.

Delivery

management:

an

integrated

delivery

planning and scheduling system, which links customer requirements, is necessary for the organization to be able to deliver across without the building up unnecessary Synchronized constraints is

inventory

supply on

chain. of

manufacturing

based

theory

advanced production-scheduling technique, which focus

50

on through put maximization. An effective deliver management system works on the pull system

throughout the supply chain. The pull system means everywhere production is in response to the actual demands from customer and not anticipated demands. Improving material flow: by optimizing the layout most manufacturing process contain so much waste that JIT can't work until improvements are made process improvements to eliminate waste often include changes in the layout. Positioning manufacturing equipment closely together in the order of the processing steps reduces waste and improves the flow in several ways placing the machines for each step; side-by-side

eliminates much of the waste of conveying work-inprogress long distance.

Improving

material

handling

system:

while

designing the material handling system it should be kept in mind that the shortest distance between two points is 51

a straight line and at the same time, it should be ensured that there is no re-handling of materials, parts etc and warehousing is optimum.

Inventory reduction: - a selective analysis of major items would help arriving at the minimum levels. A time bound plan is necessary for decreasing the inventory level in the organization. As reliability increases, it may be leveraged by operating with lesser inventories.

The implementation program of J IT is carried on by:Formation of sub committee. Training workshop is conducted. Project teams are formed for various projects identified. Carryout process mapping for critical processes in manufacturing and outside and arrive at cycle time.

52

Identify non-value adding activities and plan actions for elimination with targets for time compression.

Plan and implement supplier rationalization project (reduce average number of supplier / item). Identify items / suppliers for JIT purchase and implementation. Evolve time based inventory reduction program and implementation. scheduling Install that appropriate integrates production customer

system

requirements with manufacturing and procurement.

Benefits:Shortens the production lead-time giving earlier return on investment. Promotes continuous

improvements. Multi-selling of employees. Reliable and improved supplier's management. Reduction in space required and material handling.

53

Faster customer deliveries. Reduced work-in-progress and defects. Reduced inventories. rejections in incoming supplies and

Key indicators:Inventory turnover. Reduction in response time. Number of suppliers and supplier rejects. Reduction in material handling, inventories and space required.

4.

Equipment

effectiveness

total

productive

maintenance:In typical industrial scenario, there are instances of equipment breakdowns, minor -stoppages, lengthy setup and adjustment times, generation of defects etc. these in turn result in delayed shipment, missed production schedules and customer complaints. By

54

treating machines as partners and taking responsibility from them, we get machines we can rely on and help maintain an energized and responsive work place. This is done through collaboration between maintenance and production introducing the concept of self-maintenance and operations together on a common platform to maximize overall equipment effectiveness [DEE]. For achieving zero breakdowns and zero losses, it is very important to practice SM. Through SM, the intelligence and skills of the people who are most familiar with factory machines equipment operators are enlisted and through SM operators learn to value their machines as production partners, keeping them operating smoothly help in making the work trouble free and satisfying. The principles of ownership is driving force behind SM. Selfmaintenance brings maintenance and operations

together on a common platform to maximize overall equipment effectiveness [DEE]. For achieving zero

breakdowns and zero losses, it is very important to

55

practice SM. Through SM the intelligence and skills of the people who are most familiar with factory machines. Equipment operators are listening and through SM operators learn to value their machines as production partners; keeping them operating smoothly helps in making the work trouble free and satisfying. The principle of ownership is driving force behind SM.

Benefits of SM:Enhanced overall equipment effectiveness. Sense of ownership. Early detection of abnormalities. High work efficiency and effectiveness. Extended life of equipment. Low cost of production and increased production efficiency. Safe environment and reduction in hard to access. Skill up gradation / multi-skill of operators.

56

Key indicators: Number of accidents. Overall equipment effectiveness Number of breakdowns. Quantity of lubricant consumption.

5. Customer delight - internal and external:The existence and survival of any business

organization depends greatly on its customers. In the techno times of today when the whole world has reduced to a global village, it is imperative for any organization to continuously improve its products and services to satisfy the global customers. Customers today have become very demanding and highly aware of quality. Therefore, it is required to continuously measure and improve the customer satisfaction to the levels of customer delight and ecstasy. Internal customer satisfaction, delight, and a prerequisite to external customer delight as one cannot deliver quality to its external customer until and

57

unless it's internal customer are willing and capable of delivering the quality. The key aspects of focus are:

Understanding

the

customer

perceptions

and

expectations about the company and competition.

Timely response to all customers. Proper market assessment Application of internal customer concept. Integration delivery plans. An overall strategy for competitive advantage and total involvement of all employees for implementation. Benefits:Reduction in customer complaints. Enhances market share and organizational image. Development of new markets I segments. Satisfied employees and delighted customers. Zero customer loss. of production plan with customer

58

Reduction in response time.

Key indicators:Internal and external customer satisfaction index. Number of customer complaints. Complaint handling time.

6. Quality first: - Strategic Quality management [SQM]:Quality is no more viewed as the measure of conformity of products to a given specifications. It has been expanded to encompass every sphere of the organization and gives new opportunity for achieving business excellence. Thus, quality now has assumed strategic proportions and SQM has become an essential dimension.

SQM is the process of establishment long-range quality goals and defining the approach to achieve them.

59

SQM

is

road are

map fully

to

ensure

that and

customer met, thus

requirements

understood

attaining customer satisfaction.

Organization pursing SQM through for approach:Evolve Quality integrated manufacturing strategy: - the strategy provides for identifying process requiring to be strengthened and technique for building total quality in organization.

Implement Quality systems such as ISO and their periodic appraisal: Establish systems and procedures to comply with recognized standards such as ISO 9000 QS 9000 and seek certification.

Create company pride awareness of total Quality: employee involvement and awareness towards total quality and customer orientation is essential.

60

Create company wide awareness of total Quality and customer orientation: - employee involvement and awareness towards total quality and customer

orientation is essential. Appropriate forums / programs to be set in place to communicate the same, including feedback systems and measure to resolve issues

pertaining to internal as well as external customers.

Promotes production process control by:Identify all the critical process, tasks, key process inputs and outputs variables and their relationship. Process capability measurement and analysis. Wide application to statistical techniques and tools in both manufacturing and non-manufacturing. Promote usage of basic problem solving tools and PM analysis to eliminate chronic defects [QUDIP - Quality and Quantity, cost delivery innovations and intellectual capital, productivity and pride].

61

Application of bench marking:It is an important process incorporation of best practice in the organization. These practices are

identified through bench marking studies done across the industries both in the domestic and international markets it prevents complacency by setting in motion the process of continuous improvement bench marking can be in following areas: Product bench marking. Functional/process benchmarking. Strategic benchmarking. Best practices benchmarking. Implementation of quality function deployment beginning with customer interactions their requirements are understood and translate into engineering,

manufacturing and service requirements.

Assets cost of Quality: - the cost of quality is assessed

62

systematically

and

it

leveraged

for

identifying

improvements leading to reduction in the areas of appraisal and failure costs.

Quality function deployment process is utilized to understood and translate the voice of customer into manufacturing process service related requirements.

Process mapping, identification of critical to quality characteristics, key process input / output variable, installing appropriate measurement systems application of statistical tools and techniques as appropriate are all involved in the implementations of projects.

Benefits: Improvements in the bottom line. Hidden capacity is realized. Reduction complaints. in defects, customer returns and

63

Enhanced customer delight and yield. Reduction cost of quality. Achievement of benchmark targets.

8. Liaison and understanding:Liaison is the co-ordination or communication between two entities for mutual benefit.

In the highly competitive environment of cost through global area today, it is imperative for an organization to walk hand in hand with its stakeholders for its existence and growth. The new mantra today is that of "partnership" with all stakeholders relationships with the suppliers, customers, employers, community can turn around, weak organization into a strong one and at the same time provides, and much needed competitive edge. Equipping these teams with all around multi-skills organization would more go along with and in making to the the

flexible

adaptable

64

constantly changing customer needs.

Approach-liaison:The exchange approach visits, would involve communication, knowledge

collaborative

projects,

sharing etc; social interaction also plays a definite role in improving the relation of the company with its

stakeholders.

Teamwork / team building:Teams are mini enterprise inside the organization responsible for getting the work done and for delighting it's customers interface as well as external due to team work :-

A great variety of complex problems can be tackled beyond the capability of one individual and one function.

Problems

are

exposed

to

greater

degree

of

65

diversified knowledge, skill and experience.

Quality of decisions in a team and better than individual divisions. Cross-functional problems are easily solved through teams. A healthy, conductive and productive work culture is formed.

Skill development:The (improving) importance and urgency of training for skill development arises due to, Multi-skills required in increasing global

competition. Rapidly changing technological milieu of industry. Increased employees involvement required for

solving major issues. Employees are assessed for their skills and their individuals Skill and competency mapping is done systematic training programs both on the job and in classroom

66

training are arranged to build the skills and to faster multiple skills. Training evaluation is done to see the effectiveness of training.

Benefits:Builds mutual trust and promotes transparency. Liaisons with the stakeholders help organization through benefits. Facilitates exchange of knowledge. Team orientation speeds up progress and synergy harness the knowledge and potential to a great extent. Employee multiple skills. Positive societal perception about the organization leads to a stronger organization in the emerging socioeconomic scenario. satisfaction and enhanced due to various improvements leading to mutual

67

8.

Information

systems.

technology

and

cash

flow:Information system: - Flow of information plays a key role for taking various decisions in the best interest of the organization. The entire organizational systems, infrastructure are woven around information, be it dayto-day management or long-term planning. Information is like oxygen for breathing. An organization depends on its stakeholders each one of who have their information needs.

Organization requires systems to manage the various processes. The systems have to be effective, flexible, quick and easy to understand and perform and devoid of longest procedures systems perspective in an organization is essential for achieving performance excellence. The systems provide overall alignment of the entire organization with it is the whole business as well

68

as

its

functions

effectively

to

achieve

overall

performance. Information without systems to analyze and improve is not supported with the right information at the right time organizations have collapsed due to inadequate information. The IT has made gathering, processing and providing information easier and online, organizations have therefore leveraged IT for enhancing their MIS process controls and strengthening their systems.

Technology:The world has witnessed rapid change in the technology in the recent years. While one has been talking about technological obsolescence for long the real meaning is drawing now. While certain fields such as computers, telecommunication, entertainment,

electronics, and medical fields have shown for more changes, all other industries and businesses have been influenced considerably.

69

The recent emergence of internet has suddenly made the entire business revolve against new strategies. Remote processing has become a reality virtual

organization, team's office, committees have become reality. Technology has spared no field. Automation is seen everywhere, be it machinery or simple banking operation.

In certain

protected amount

economies, of shield

organizations from

enjoyed

technological

obsolescence. In the global economy, such protections are no more available; one has to compete with world class organizations that have leading edge technologies in all parts of the business mighty organizations have collapsed simply Because they did not keep pace with technology even in organizations. Where new technology has been introduced poor or slow absorption has caused collapsed. Implementing new technology always met

70

with resistance from management because of high investment, from employees because of retrenchment or simply a resistance to change.

71

CHAPTER 6

IMPLEMENTATION OF WCM IN HARIHAR POLYFIBRES

CORPORATE GUIDELINES GOALS OF THE TRAINING PROGRAM IMMEDIATE OBJECTIVE OF WCM PROGRAM WCM at HPF FUTURE FRONTIER

72

IMPLEMENTATION OF WCM IN HARIHAR POLYFIBRES DIVISION OF GRASIM INDUSTRIES LTD. KUMARPATNAM " The world class manufacturers always go after the next class of customer by making the product attractive in one more way".

CORPORATE GUIDELINES: The corporate head office of the Aditya Birla group in Bombay has formulated a set of guidelines,

procedures, tools and techniques under the world class manufacturing training program initiated by it. These have been formulated in such a way that they are best suited for implementation among the group companies.

The WCM training program encompasses the intent and elements of the initiatives that are currently being implemented by successful global players worldwide, 73

under the label, total product maintenance, total quality maintenance, organization, or total quality control, business /

management,

process

re-engineering,

good manufacturing practices, quality circles, learning organization, ISO 9000/14000 etc.

GOALS OF THE TRAINING PROGRAM: WCM training program by the Aditya Birla Group is designed to improve and motivate healthy competitive environment with the group units and prepare them for tomorrows competitive challenges from global buyers.

Ensure the elimination of non-value adding activities And wastage. It also puts in place a program for continuous improvement through combination of best of Japanese, American and European practices. Stimulate and assist organizations to participate in Improvement activities towards achieving total quality by compliance to best practices in quality

74

management systems. Ensure an approach that covers all areas, all employees at all Levels for quality in products, process and result leading to stockholders satisfaction. Achieve zero breakdowns, zero losses, zero defects, and zero Accidents and zero pollution. Develop a culture, which is market driven, always exceeding customer satisfaction.

Immediate objective of WCM program: The above Mentioned goals can be achieved only by changing the mindset of the employees. They are the people who need to motivate by installing in them an urge to give their best plants to the organization.

Hence, every employee should; Understand the best standards in different areas of

75

work place. Be committed to implementing such standards to be at the work place. Instantly notice deviation from standards. Reject deviations from standards; also know as abnormalities. Likes to establish the "root cause" of non-

conformance to standards. Be keen to eliminate the source of deviation at the root. Take pride in resorting and maintaining the original standards. standards. Care for the customer "external and internal". Refuse to accept non-value-adding activities. Innovative improvements on original

People work on process and the people wish the above mindset created a positive impact on quality, cost and delivery (QCD) triangle. Improves quality reduce cost and on time delivery.

76

WCM at HPF: WCM cell was constituted at Harihar Polyfibers in July 1997 with three full time members in secretariat. The members are all qualifies engineers. It is a stipulated norm that all the members of the WCM secretariat have to be engineers.

Together the trios have initiated a WCM program, which is well suited to a process industry like Harihar Polyfibres, Ku marpatnam.

Harihar employees.

polyfibres Achieving

consists world

of

around

1600

class

manufacturing

standards takes time and it is a gradual phenomenon. At HPF, the install phase consists of creating awareness among the employees about the need for such a program conducting the WCM conference cum

workshops creates this awareness.

77

WCM conference cum workshops are held for establishing common WCM language and identifying abnormalities in the plant involving all employees present in the conference.

Future Frontier:Thereafter in a meeting with his executives,

managers and officers, Sri S.S.Maru said "The Gold Award was the result of total, collective and dedicated effort on part of each and every employee"- and that was saying it all - and at the same time he reminded "now it is time for us to prepare ourselves to challenge the Platinum Award during 2004" and that is - working together for a better, bright and prosperous further, at Harihar Polyfibres and Grasiline, at Harihar, as always.

78

CHAPTER 7

SURVEY ANALYSIS AND FINDINGS, SUGGESTIONS AND CONCLUSION

79

SURVEY ANALYSIS AND INTERPRETATION

Review of WCM program at Harihar Polyfibres division:The review of WCM Elimate seeks to elicit the perceptions of the people and have reflects their feeling and attitudes towards the WCM program. This may be used to set right the weakness and capitalize on the strengths.

In order to know the reactions of the management, staff and the workers towards the WCM program questionnaire survey with selected individuals was done during the study.

The result obtained on the questionnaire survey is given below-

80

SURVEY ANALYSIS

1.7 Table showing effective implementation and practices of WCM : Here the researcher tries to find out weather the WCM implementation and practices are effective

Strongly Agree 8 44%

Agree 6 33%

Disagree 4 23%

Strongly disagree 0 0%

Total 18 100%

INTERPRETATION: From the above table it can analyzed that 44% of the respondents strongly agree, 33% employees agree, 22% disagree and 0% strongly disagree that the effective implementation and practices of WCM in HARIHAR POLYFIBRES.

81

Graph showing effective implementation and practices of WCM

Disagree 22%

disagree Strongly 0% Agree Strongly 45%

Agree 33%

82

2.7 WCM policy, goals and objectives Here the researcher tries to find out weather the WCM policy, goals and objectives are well know to all employees.

Strongly Agree 11 61%

Agree 7 39%

Disagree 0 0%

Strongly disagree 0 0%

Total 18 100%

INTERPRETATION: From the above observation, we can analyze that 61 % strongly agree and 39% agree that WCM policy, goals and objectives that are displayed are know to employees.

83

Graph showing WCM policy, goals and objectives

1 2

1 1

1 0

2 0 0 Agree Strongly Agree Disagree disagree Strongly 0

84

3.7 Roles and responsibilities as team members Here the researcher tries to find out weather roles and responsibilities as a team members.

Strongly Agree 7 39%

Agree 10 55%

Disagree 1 6%

Strongly disagree 0 0%

Total 18 100%

INTERPRETATION: From the above table .it can be analyzed that 39% strongly agree, 55% agree and 60% disagree that roles and responsibilities as team members are inspired to work in teams.

85

Graph showing Roles and responsibilities as team members

10 10 9 8 7 6 5 4 3 2 1 0 Agree Strongly Agree Disagree disagree Strongly 1 0 7

86

4.7 WCM approach applies to every industrial activity Here the researcher tries to find out weather WCM approach applies to every industrial activity. Strongly Agree 9 50% Ag ree 9 50% Disagree 0 0% Strongly disaaree 0 0% Total 18 100%

INTERPRETATION: On the analysis of above obtained data, 50% agree to the point and 50% strongly agree that WCM approach applies to every industrial activity.

87

Graph showing WCM approach applies to every industrial activity

9 8 7 6 5 4 3 2 1 0

0 Agree Strongly Ag ree Disagree

0 disaaree Strongly

88

5.7 Kaizen is being implemented in day-to-day working Here the researcher tries to find out weather Kaizen is being implemented in day-to-day working.

Strongly Agree 7 39%

Agree 10 56%

Disagree 0 0

Strongly disagree 1 5%

Total 18 100%

INTERPRETATION: From the analysis of the above data it can be interpreted that 39% strongly agree, 56% agree and 50/0 strongly disagree that kaizen is being implemented in day-to-day working.

89

Graph showing Kaizen is being implemented in day-to-day working

disagree Strongly 6% Disagree 0% Agree Strongly 39%

Agree 55%

90

7.6

Communication

system

prevailed

in

the

organization Here the researcher tries to find out the

communication system prevalent in the organization.

Communic Communic Communic Communic ation 100% 1 50% ation 80% 12 67% ation 60% 5 28% ation 40% 0 0 Total 18 100%

INTERPRETATION: On the observation of above table and data it is clear that majority of respondents i.e. 67% supported to 80%, 28% of employees supported to 100% that communication system prevalent in the organization.

91

Graph showing Communication system prevailed in the organization

Com m unication 1 4% Com m unication 36%

Com m unication 21 %

Com m unication

Com m unication 29% Com m unication Com m unication

Com m unication

92

6.7 Adequate opportunities to enhance my skills through training Here the researcher tries to find out that adequate opportunity to enhance my skills through training.

Strongly Agree 4 22%

Agree 14 78%

Disagree 0 0

Strongly disagree 0 0

Total 18 100%

INTERPRETATION: From the above data 22% of employees strongly agree and 780/0 of employees agree that unit gives them adequate opportunities to enhance my skills through training.

93

Graph showing Adequate opportunities to enhance my skills through training

14 14 12 10 8 6 4 4 2 0 0 Agree Strongly Agree Disagree disagree Strongly 0

94

7.8 WCM helps to achieve six-sigma level in all activities Here the researcher tries to find out that WCM helps to achieve six sigma level in all activities.

Strongly Agree 6 330/0

Agree 11 61%

Disagree Strongly disagree 0 1 0% 6%

Total 18 100%

INTERPRETATION: From the observation of above data, it can be analyzed that, 33% of employees strongly agree, 61 % of employees agree and rest 60/0 of employees strongly disagree.

95

Graph showing WCM helps to achieve six-sigma level in all activities

0%

6% 33%

61% Strongly Agree Agree Disagree Strongly disagree

96

7.9 WCM has helped in achieving: Here the researcher tries to find out that WCM has helped in achieving. System and standardization Cleanliness Reduction in accidents Reduction in down time of equipment Reduction in customer complaints Reduction in pollution levels INTERPRETATION: On the observation of above table and data 72% of employees agree that WCM helped in achieving system and standardization, 50% of employees cleanliness, 39% of employees reduction in accidents, 33% of employees agree that reduction in down time of equipment, 44% of employees agree that reduction in customer complaints and 28% reduction in pollution levels. 13 9 7 6 8 5 33% 44% 28% 72% 50% 39%

97

CHAPTER 8

FINDINGS AND SUGGESTIONS AND CONCLUSION

SURVEY FINDINGS SUGGESTIONS CONCLUSION

98

FINDINGS AND SUGGESTIONS SURVEY FINDINGS: The study consists of analysis about WCM AT HARI HAR POL YFIBRES. For this purpose of the study of 18 employees were selected and their views are solicited on different parameters.

1. Out of 18 employees, 8 employees strongly agree, 6 agree and 4 disagree that Effective Implementation And practices Of WCM. (Table - 1)

2. Out of 18 employees, 11 employees strongly agree, 7 agree that WCM Policy, Goals and Objectives that are displayed are known to me. (Table - 2) 3. 7 employees strongly agree, 10 agree, 1 disagree that Roles And Responsibility AS team Members.

99

(Table - 3)

4. 9 employees strongly agree, 9 agree that WCM approach applies. To Every Industrial Activity. (Table - 4) 5. 7 employees strongly agree, 10 agree, 1 strongly disagree that the Kaizen Is Being Implemented In DayTo-Day working. (Table - 5) 6. 1 employee supported to 100%, 12 employee

supported to 80%, 5 employees supported to 60% that Communication System Prevalent in the

Organization. (Table - 6) 7. 4 employee strongly agreed and 14 employee agree to the point that Adequate Opportunities Enhance My Skill through Training. (Table - 7) To

100

8. 6 employees strongly agree, 11 of employees agree and 1 employee strongly disagree that WCM Helps in Achieving SixSigma Level in All Activities. (Table - 8)

9. I have analyzed the WCM, which has helped in achieving System and Standardization, Cleanliness, Reduction in down Time Equipment, Reduction in Customer Complaints and Reduction in Pollution Levels.

SUGGESTIONS 1. Employee exchange program between sister concern should be increased so that the experiences, views and ideas of people involved can be shared.

2. WCM auditing should be done by an independent and recognized agency and at regular intervals to improve its authenticity and effectiveness.

101

3. WCM training programs should be geared to support the corporate objectives. 4. It is not necessary that the techniques that worked in one plant have to work in another. Therefore, it is different method of training program be formulated such that it~ suits the industry. 5. Workers participation should be welcomed by the management concerning WCM training program. 6. The existing forms of WCM teams should take various alternatives of elimination abnormality and select the best-suited one.

CONCLUSION The effectively information collected by regarding WCM is and

implemented

organizing

teams

different committees are formed for effective practices and control over the teams, which is organized. Thus, through the effective implementation they already

102

achieved "Gold

Award

for

WCM

in

2002" and

compared to past they are able to better and striving for the best. They are still striving for excellence in standardization by implementing six-sigma approach and they are preparing plans for introducing six-sigma approach in production.

103

ANNEXURE

Questionnaire Bibliography

104

QUESTIONNAIRE Dear Sir, I am a final B.B.M. student from SAHYADRY ARTS & COMMERCE COLLEGE SHIMOGA. As a partial

requirement of B.B.M. course. I am doing a project on "THE EFFECTIVE IMPLEMENTATION AND PRACTISES OF WCM" with special reference to Harihar Polyfibres. Hence, I request you to fill the following questionnaire. The information given by you will be used only for my academic purpose and will be kept confidential.

Thanking you,

Yours sincerely, (SUDHANVA B.S GOWDA)

105

Profile of respondents

Name Age Department Designation Experience

: : : : :

1. Is WCM is effective implementation and practiced at

HPF? Strongly Agree Agree Disagree Strongly disagree [ ] [ ] [ ] [ ]

2. WCM policy, goals and objectives which are displayed

are know to me Strongly Agree Agree [ ] [ ]

106

Disagree Strongly disagree

[ ] [ ]

3. Roles and responsibilities as team members will be

inspired him to work in teams: Strongly Agree Agree Disagree Strongly disagree [ ] [ ] [ ] [ ]

4. WCM approach applies to every industrial activity:

Strongly Agree Agree Disagree Strongly disagree

[ ] [ ] [ ] [ ]

5. Kaizen is being implemented in day to day working:

Strongly Agree Agree Disagree Strongly disagree

[ ] [ ] [ ] [ ]

6. Communication system prevalent in the Organization

107

and is effective to the extent of _ Strongly Agree Agree Disagree Strongly disagree [ ] [ ] [ ] [ ]

7. Unit gives me adequate opportunities to enhance my

skills through training: Strongly Agree Agree Disagree Strongly disagree [ ] [ ] [ ] [ ]

8. Approach of WCM helps to achieve six-sigma level in

all activity: Strongly Agree Agree Disagree Strongly disagree [ ] [ ] [ ] [ ]

9. WCM has helped in achieving

108

System and standardization Cleanliness Reduction of accidents Reduction in downtime

[ ] [ ] [ ]

of equipments [ ] [ ] [ ]

Reduction in customer complaints Reduction in pollution levels

109

Bibliography Word class manufacturing: The Next Decade - Richard J Schonberger. Word class manufacturing: The lession of simplicity applied - Richard J Schonberger. Publisher Harpercollins Tyndale house

Website

: www.adityabirla.com

110