MAJOR PROJECT REPORT TQ-601 BATCH 0707-02 TO REDUCE THE SALE LOSS OF EYEBOLTS

Authors Name:
Harvinder Singh Saund HOD (Design and Development) S.K.G Engineering Company. Ludhiana. Satbir Singh Production Engineer G.S Auto Limited Ludhiana Mohan Lal Bhawra Dy.G.M (Quality Assurance) S.K.G Engineering Company. Ludhiana.

Submitted to: PTUs Gian Jyoti School of TQM & Entrepreneurship, Mohali (Punjab) Date of Submission: 31May 2010 Project Guide: Mr. Naresh Chawla
1

TABLE OF CONTENTS
S.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Description Title page Companys Introduction Summary of Project Problem Statement, Project Mission & Project Plan Team member & Project History Project Design and Methodology Flow Diagram Brain Storming Cause and effect diagram Data collection & Analysis and Pareto analysis Remedial Journey Resistance to change Counter Measure Benefits Control for Holding the gains Page No.

1 2 6 7 9 11 12 13 14 15 19 25 26 32 33

COMPANY INTRODUCTION UNIPARTS GROUP

The Head Quarters of The UNIPARTS Group is based in New Delhi, India. The group has 6 strategically placed manufacturing facilities all over India, 2 in USA and 1 in Holland, out of which UNIPARTS India - NOIDA remains its flagship manufacturing unit. In India, The Group employs 3300 people and has a total manufacturing area under roof of approximately 45,000 Sq M. UNIPARTS Group is the Largest Producer of 3-Point Linkage Systems for agricultural machinery globally. Leading international manufacturer of components, assemblies and hydraulic systems for agricultural and construction equipment. Products portfolio includes 3- Point Linkage System, Fabrications and Assemblies, Machined Components, Forgings and Castings. The Group has strategically placed manufacturing bases in India and their main markets in Europe and the USA which service the global agricultural market. Supported by local teams offering simultaneous engineering and full service capability UNIPARTS Group provides solutions from concept to design, manufacturing testing and validation. 87% of the groups revenue of US$135m is exported to international OEM manufacturers of agricultural and construction equipment in Japan, Europe, North and South America. UNIPARTS Groups commitment to its customers, extensive experience in the industry backed by state of the art manufacturing technology and backward integrated manufacturing processes enables the group to support their global customers with global solutions to meet future challenges.

JOURNEY SO FAR
1984 Founded by the Sonis and became a supplier to the After Market in the US. 1990 Entered the European After Market Largest supplier to the EU and US markets by volume and value Entered the European OEM market as a Tier II Supplier Commenced sales to OEMS in India as a Tier I supplier

1996 2000

2001 Uniparts India Ltd. was awarded an All India Certificate Of Merit For Outstanding Export Performance. Uniparts India Ltd. received the Highest Exporter Award in the North India Region. 2002 Commenced sales to OEMS in US as a Tier I supplier Validated by OEMs like John Deere, CNH, Kubota, Yanmar.

2003 Uniparts India Ltd. received an All India Award for Highest Exports. 2005 Commenced sales to OEMS in JAPAN as a Tier I supplier Partnered with Olsen Engg. Uniparts India Ltd. received an All India Award for Top Exporter in the North India Region.

2006 Uniparts India Ltd. received an All India Award for Highest Growth in Exports 2007 Partnered with KRAMP BV & entered hydraulic space in Europe Inauguration of US warehouse in Augusta (GA) Acquisition of balance stake Olsen Engg. Tier I supplies from Uniparts Kavee BV to European OEMs Inauguration Uniparts India Vizag Operation UNIPARTS India - VIZAG is a new Greenfield Project. The unit is spread over 30 acres with 18,000 Sq M of manufacturing under roof. The unit is next to one of India's biggest ports and in the same city as one of India's and The Group's biggest steel supplier. 4

2009

SKG Engineering Company Ludhiana is a manufacturing unit of UNIPARTS India Ltd. SKG Engineering Company was established in 1989 primarily to meet growing demand of group units and export market for supply of raw and machined forging, components based on forging and farm hardware products.

PRODUCT RANGE:

Competencies
Forging Fabrications Surface Finish Quality & Testing Machining Heat Treatment Logistics Design & Validation

AWARDS & ACHIEVEMENTS

SKG Engineering Company has received following awards for excellence in exports in its category. 2001 UNIPARTS subsidiary - SKG Company received a Certificate of Export Excellence in the North India Region. 2003 UNIPARTS subsidiary - SKG Company was awarded an All India Certificate of Export Excellence. 5

SUMMARY: This project was initiated in November 2009. The objective was to reduce the Sale loss of Eyebolts On the basis of six month (April 2009-Oct. 2009) data it was found that Excess no. of setting due to complicated process i.e 3 times Forging & Trimming and excess movement of material within the section & Intersection movement results in the delivery failure. It has resulted in Sale loss of 8.51 Lac during this period which is equivalent to loss of12.76 lac/annum against the Budgeted sale 54.58 lac. Target was to improve the delivery compliance from 76% to 95% by 31st May 2009, resulting to minimize the sale loss to 2.73lac/annum. A brain storming session is conducted to find the possible causes for sale loss. In order to find out the vital few causes, Causes & Effect Study conducted & all causes (identified during brain storming) were rated through Nominal Group Technique. After finding out the Vital few Causes, necessary corrective /preventive actions were taken. Simultaneously feedback was also taken during implementation of corrective / preventive actions, which also helps in designing the improvement plan. After implementation of improvement plan data of were collected and again feed back was taken, which shows the improvement. In the last, necessary steps were implemented to hold the achieved gain.

PROBLEM STATEMENT:
Delivery compliance for Eyebolt product group is 76% during April-09 to Nov-09. It has resulted in Sale loss of 8.51 Lac during this period which is equivalent to loss of 12.76 lac /annum against the Budgeted sale 54.58 lac.

ORDER LOG SHEET

Month
Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09

Ordered Qty
15412 9470 8528 8858 13058 16543 17537 14661

Dispatched Qty
11758 4188 10354 9471 3458 13494 5805 20306

Cumulative Order Qty

15412 24882 33410 42268 55326 71869 89406 104067

Cumulative Dispatched Qty

11758 15946 26300 35771 39229 52723 58528 78834

Pendency
3654 8936 7110 6497 16097 19146 30878 25233

TOTAL

104067

78834

Delivery Compliance = 76%

TREND OF EYEBOLT SALE 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 SALE VALUE (IN LACS) 9.25
TARGET LINE 4.55Lac

6.09 2.55 2.11 0.86 Apr-09 May-09 Jun-09 0.80 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 3.87 2.35

Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 SALE VALUE (In Lac) 9.25 0.86 2.11 2.55 0.80 3.87 2.35 6.09 MONTH

Current Average SALE :3.48 Lac Target Average SALE :4.55 Lac

MISSION STATEMENT:
To improve the delivery compliance from 76% to 95% by 31st May 2010. It will minimize the sale loss to 2.73 lac/annum

PROJECT PLANNING:

Project Start Date: Project Finish Date: Meeting Frequency: Methodology: Project Undertaken At: Current Status:

15.01.10 15.04.10 Twice in a week (Tuesday & Friday, 5pm-6pm) Juran Quality Improvement SKG Engineering Company, Ldh Completed

TEAM MEMBERS

S.No.
1

NAME
Harvinder Singh Saund Mohan Lal Bhawra Satbir Singh

SID NO.
0707-0044

COMPANY NAME
SKG Engg. Company, Ludhiana SKG Engg. Company, Ludhiana GS Auto, Ludhiana

ROLE Coordinator

2 3

0707-0076 0707-0107

PROJECT HISTORY:

It was noticed that there was excess no of setting & excess movement of material with in the section & Intersection movement leads to delivery failure. It was decided to first analyze the reasons for excess no of setting. This was followed by dissection of the process to various steps of this project in order to follow a well defined & stream lined working during whole journey of the project

PROJECT PLAN:
1. Project Goal
Develop the team of people, to align them with the system & make them understand & operative by creating awareness among themselves. To visualize the effect of the wastages due to Multiple settings, material movement in plant, identify the root cause & eliminate these wastage through improvement activity. To improve the productivity of Forge shop. To improve customer satisfaction level (Internal & External). To update the existing Systematic requirements: Data preparation and analysis & utilization.

2. Success Measures- Improved customer satisfaction:We measured our success by improved customer (Internal) satisfaction. This has measured through customer (Internal) feedback before and after the project.

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PROJECT DESIGN AND METHODOLOGY:

Step 1 Flow Diagram Step 2 Brainstorming Step 3 Cause and Effect Diagram Step 4 Data collection and analysis Step 5 Pareto Analysis Step 6 Implementation of remedies Step 7 Resistance to Change & Countermeasure Step 8 Holding the gains

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FLOW DIAGRAM FOR EYEBOLT MANUFACTURING

Start Receipt of Raw Material Incoming Inspection Draw & Cutting Facing & Chamfering Stamping Forging-1 & Trimming -1 Forging-1 & Trimming -2 Forging-1 & Trimming -3 Stage Inspection Drilling & Countersinking Normalizing Machining Centerless Grinding Threading Final Inspection Oiling & Net Covering Packing & Dispatch 12

BRAINSTORMING FOR DELIVERY DELAYS IN EYEBOLTS

Brainstorming sessions with, production dept. & team members were carried out. The probable causes identified during these sessions are as follows:-

1. Excess lead time. 2. Inadequate environmental condition. 3. Excess movement of material. 4. Excess no. of settings. 5. Communication gap. 6. High Inter Section material movement. 7. No product owner. 8. Frequent change in schedule. 9. Complicated process. 10. Product capacity not updated. 11. Ineffective Supervision. 12. Improper follow up. 13. High inspection time. 14. More setting time. 15. Unskilled operator.

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CAUSE & EFFECT DIAGRAM

System Inefficient supervision Poor Environmental condition Unskilled operator

Man Production Capacity not updated

Method

Frequent change in planning Communication Gap Lack of factual based decision

Improper Follow up

Higher inspection time No production owner Low utilization of resources. Multiple setting required

Shortage of man power

Excess no. of settings

Sale Loss
Non availability of raw material Excess Movement of material
High tooling breakdown

Lack of skill

In balanced line

Old machinery Material 14 Machine

DATA COLLECTION AND ANALYSIS: Bottle neck in Process:

Production / Day with Present Manufacturing Process

S.NO.
1 2 3 4 5 6 7 8 9 10

Manufacturing Operation
Draw & Cutting Facing & Chamfering Stamping Forging & Trimming (3Times) Drilling & Counter sunking Normalizing Shot Blasting Machining Centre less Grinding Threading

Production / Day
2000 2000 2000 394 750 750 1000 750 800 750

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MATERIAL MOVEMENT MEASUREMENT (Forging Shop & Complete Plant)

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Prioritizing of Reasons through Nominal Group Technique

The Nominal Group Technique (NGT) or multi-voting technique is a methodology for achieving team consensus quickly when the team is ranking several options or alternatives or selecting the best choice among them. The method basically consists of having each team member come up with his or her personnel ranking of the options or choices, and collation of everyones rankings into team consensus. Nominal Group technique is good for: 1. ensuring equal participation of each member of the team when team is making a choice or ranking several options or alternatives; 2. building everyones commitment to whatever choice or ranking the team makes because everyone was given a fair chance to participate; 3. eliminating peer pressure in the teams selection / ranking process; and results in a set of prioritized solutions or recommendations. 4. preventing dominant members for controlling the quite ones; and 5. making the teams consensus visible , allowing the major points of disagreements to be discussed & settled objectively.

S.N O. 1 2 3 4 5 6

ROOT CAUSE Communica tion Gap Poor Environmen tal Condition High Inspection Time Excess No. Of Setting Higher Tooling Break Down Excess Movement Of Material

VINOD CHOP RA 4 5 7 8 5 7

M.S NE GI 3 5 6 9 5 7

RAME SH SINGH 4 4 6 9 3 7

MOH AN SING H 4 4 8 9 5 6

VIVE K 4 5 7 9 6 8

KULWIND ER 4 6 8 9 3 7

SUKHD EV 3 6 7 8 5 6

JASBI R SING H 4 6 9 9 6 7

PARVE EN 7 6 9 9 3 4

LAL SING H 6 4 6 9 5 6

TOTA L 43 51 73 88 46 65

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DATA ANALYSIS
S.NO. REASON OF SALE LOSS
RATING % CONTRIBUTION CUMMULATION

1 2 3 4 5 6

Excess No. Of Setting Higher Inspection Time Excess Movement Of Material Inadequate Environmental Condition High Tooling Break Down Communication Gap

88 73 65 51 46 43

24.04 19.95 17.76 13.93 12.57 11.75

24.04 43.99 61.75 75.68 88.25 100.00

1 0 0 .0 0 9 0 .0 0 8 0 .0 0 7 0 .0 0

P A R E T O C H A R T F O R S A L E L O S S 1 0 0 .0 0
8 8 .2 5

1 0 0 .0 0 9 0 .0 0 8 0 .0 0

Vital Few
6 1 .7 5

7 5 .6 8

7 0 .0 0

% CONTRIBUTION

6 0 .0 0 5 0 .0 0 4 0 .0 0 3 0 .0 0 2 0 .0 0 1 0 .0 0 0 .0 0 2 4 .0 4 2 4 .0 4 1 9 .9 5 1 7 .7 6 4 3 .9 9

Useful Many

6 0 .0 0 5 0 .0 0 4 0 .0 0 3 0 .0 0

1 3 .9 3

1 2 .5 7

1 1 .7 5

2 0 .0 0 1 0 .0 0 0 .0 0

E xc e s s N o . O fH ig h e r In s p e cE xcne s s M o ve m e n t In a d e q u a te H ig h T o o lin g BC o a k m u n ic a tio n G a p tio Of re m S e ttin g T im e M a te ria l E n vio rn m e n ta l Dow n C o n d itio n

REASO N
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CUMMULATION

REMEDIAL JOURNEY
Forging of eyebolts includes a series of sequential operations, pre forging and trimming done three time each . The dissection of process helps us to make measurements at intermediate steps in the process to discover at which step the time is taken more.

S.NO.

CAUSE

WHY
Process Limitation ( Forging of Eye bolt completed in 6setting )

COUNTER MEASURE
Technology Up gradation Proper Tooling Design

Higher No. Of Setting

Inadequate Tooling

Unskilled Die Setter High no. of process ( Forging of Eye bolt completed in 6setting ) 2 Higher Inspection Time More Intersection Movement Result more Stage inspection Process Limitation at Forging 3 Excess Movement Of Material Inadequate Lay-out

Training Mechanism Technology Up gradation Re-Layout in forge shop Technology Up gradation Redesign Layout for Machining cell

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METAL GATHERING MACHINE

The Metal Gathering Machines or Resistance Heating and Upsetting Machines are designed for use in drop forging and valve industry. Generally, upsetting can be applied to almost any application calling for the gathering of stock material to enable a component to be provided with the minimum of press works. The perfect "grain-flow" obtained together with extremely short heating times, the upsetting machine is ideal for a variety of jobs and almost in all cases no external or additional heat is required for the subsequent forging operations

WORKING The work piece is firmly gripped in hydraulically operated sliding contact dies. One end of the rod rests on the upset slide operated from a hydraulic cylinder; the top end of the rod, which is to be upset rests against an anvil whose movement is controlled by an adjustable hydraulic flow control valve. The Transformer output is connected between the clamping dies and the anvil. On application of the ram pressure and high amperage current, the length of the work piece between the clamping dies and anvil heats up and gathers. Simultaneously, the rod is slowly pushed through the clamping dies and the anvil is retracted gradually until the required shape of bulb is formed. CONVENTIONAL ROUTE METAL GATHERING ROUTE

Stages of Forging on Conventional Route 1st Pre Forging , 2nd Forging & Final Forging

Stages of Forging on Metal Gathering Gathering & Forging

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Benefits of Metal Gathering Machine

By employing Metal gathering many of the well known technical limitations and disadvantages of mechanical upsetting can be overcome

Simultaneous heating and forming in one machine. No longitudinal flash is formed such as is unavoidable in a split-die mechanical up settler. No waste of heating energy or material. Outside of the upset volume can be precisely controlled to allow subsequent, "flash less" forging in closed dies. Always ready for instant use, no warm up period. Energy efficient, about 0.35 - 0.40 kwh / kg. Minimal scaling because of simultaneous heating and gathering. Improved die life in subsequent forging operations. No environmental pollution by emission of heat, fume or exhaust gas. Free upsets can be finish forged without re-heating and so save time and energy. Consistent heating temperature through the use of thyristor control. Optimal grain flow and fault free surface. The unheated bar length remains unchanged.

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FINANCIAL BACKUP

Metal Gathering in place of Forging to reduce the excess no. of setting. Process Cost Reduction: Eyebolt (that can be produced through Metal Gathering) Average cost of Forging through Conventional Route Average cost of Forging through Metal Gathering Difference in Cost Saving Input Reduction: Eyebolts with body diameter 15mm Eyebolts with body diameter 32mm Average Reduction in Weight Average Raw Material Rate Saving TOTAL SAVING PAY BACK PERIOD Investment on Two Machines Installation Expenses Total Cost Incurred Pay Back Period (In Years) 0.010 Kg 0.063 Kg 0.03645 Kg 38 193283.07 768208.47

139545 8.35 4.23 4.12 574925.4

727787 25000 752787 Cost of Project / Annual Saving 752787 / 768208.47 = 0.98

Reduction in Lead Time: Based on Cycle time study for 10 different type of eyebolts constituting 95945 nos. No. of Shifts required through Conventional Route: 250Ton Screw Press: 125Ton Screw Press: Total Shifts: No. of Shifts required through Metal Gathering Route: Saving in No. of Shifts: Spare capacity can be utilized for other valuable products 79.56 Shifts 61.98 Shifts 141.54 Shifts 65.45 Shifts 76.09 Shifts

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STEPS TO EFFECTIVE SOLUTION (Amendment in Layout)

Modified Layout has reduced the excess movement of the material.

LAYOUT MODIFICATION FORGING SHOP

Amendment in layout of Forging Shop after addition of Metal Gathering has resulted in reduction in material movement by distance of 39.30 Metre

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LAYOUT MODIFICATION (Material Movement in Complete Plant)

Total path for material movement (As is): Total path for material movement (After implementation): Total Saving in distance covered:

361.84 Metre 260.82 Metre 101.02 Metre

Amendment in layout of Forging Shop & Machining cell has resulted in reduction in material movement by distance of 101.02 Metre
BENEFITS: Reduce the excess movement of material. Reduce WIP. Improved Efficiency. Save Manpower 24

Addressing Resistance to Change

As objective cannot be achieved unless we use the hands & heads of the work force: Motivation through incentive scheme. Developing team work. Involvement of all level employees. Weekly discussion with workforce regarding advantages & disadvantages of changes being done.

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TRAINING MECHANISM

SKG ENGG. OMPANY

C-198, PHASE-VII, LDH.

TRAINING NEED IDENTIFICATION FORM

T. No. Training Required In Class Room In House / On the job /Outside In-House & On the

Deptt. :- Forging

Sr.No.

Name of Employee

Expected Benefits

Faculty (In House / On the Job Training / Outside Agency) Mohan Singh Sri Krishan

Yog Raj

203

1)Operation 1)Will Reduce the Die Setting time. at Metal

2 3 4 5 6 7 8 9 10 11 12 13 14 15

Suraj Bhan Guru Dev Fagu Manjhi Ram Ratan Kuldeep Singh Dharminder Singh Dinesh Dubay Adit Kumar Vinod Kumar Shankar Dayal Bal Ram Madan Chaudary Vijay Shankar Ram Partap

220 222 213 206 208 204 217 226 207 210 214 218 223 224

Date :- 25.02.10

Signature (HOD / Works Mgr.)

FF : QS : 31 : 01

26 SKG ENGG. COMPANY C-198, PHASE-VII, LDH.

Issue Date :-

Preventive Maintenance Check List

M/c Code Date :-

:-

Maintenance Carried Out By

Machine Name :- Metal Gathering M/c

Name
Machine Location :- Forge Shop
Check Points OK / Investigation

Sign

S. No. 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 2.0 2.1 2.2 2.3 3.0 3.1 3.2 Monthly Routine by Maintenance Tighten all nuts & bolts. Check the wheel check nut for Looseness. Check the lead screw for any play. Check for any play between jib and slide. Check the motor IR and load current. Check that foundation nuts are not loose. Check the electrical terminals for any loose connections. Check the condition of starter, coil and o/l relay. Half yearly Routine by Maintenance Repeat all monthly checks. Check the bushes for wear & tear. Check the shaft bearings. Yearly Routine by Maintenance Repeat all Half yearly checks. Check the condition of slides for any play.

Not OK.

S.NO. Ref

Possible Cause

Action

Reviewed & Approved By

FF : MNT : 11 : 01 27

SKG ENGG. COMPANY C-198, PHASE-VII, LDH.

QUARTERLY TRAINING FEED BACK REPORT

Period : Dec.09-March 10
Topic of Training on the Job / In House Training Purpose / Evaluatio n Indicator Status Before Technology upgrad ation

Deptt : Forging Date :15-04-2010

No. 1 2 3 4 5 6 7 8 9 10 11 12

Name of Employee Yog Raj Suraj Bhan Guru Dev Fagu Manjhi Ram Ratan Kuldeep Singh Dharminder Singh Dinesh Dubay Adit Kumar Vinod Kumar Shankar Dayal Bal Ram

T. No. 203 220 222 213 206 208 204 217 226 207 210 214

After Technology upgradat ion

Remarks

1) Operation at Metal Gathering 2) Integration of Forging & Trimming Operation with Metal Gathering.

SALE VALUE (IN LACS)

SALE VALUE (IN LACS)

To reduce the no. of settings.

T REND O F EYEB O LT SALE

1 5 .0 0 1 0 .0 0 9 .2 5 5 .0 0 0 .0 0 6.0 9 2 .5 5 3 .8 7 2 .1 1 2 .3 5 0 .8 6 0 .8 0 1 2 .3 7 1 3 .9 5 1 0 .8 0 6 .5 8

TRE N D OF E YE B OLT S AL E 1 0 .0 0 8 .0 0 6 .0 0 4 .0 0 2 .0 0 0 .0 0 9 .2 5 6 .0 9 2 .1 1 0 .8 6 2 .5 5 0 .8 0 3 .8 7 2 .3 5

Ap r Ma -09 y Jun-09 Ju 09 Au l-09 g Se -09 pOc 09 t No -09 v De -09 c Jan-09 Fe -10 b Ma -10 r-1 0

A p r -M a y -J u n - J u l- A u g -S e p -O c t-N o v09 09 09 09 09 09 09 09 A p r -M a y -J u n - J u l- A u g S e p -O c t-N o v-

A pM aJ u J u l- uS e O c N oD e J a F e M a A 9 L c S A L E V A L U E (In.20a.82) .12 .50 .83 .82 .36 .01 2 .1 0 .6 .51 3 . M ON TH

S A L E V A L U E (9In.2L50 c ) 62 . 1 12 .5 50 .8 03 .8 72 . 3 56 .0 9 a .8 MON TH

Signature of HOD :FF:QS:33:02

ORDER LOG SHEET

Month

Ordered Qty

Dispatched Qty

Cumulative Order Qty 15412 24882 33410 42268 55326 71869 89406 104067 115398 126999 141748 155748

Cumulative Dispatched Qty 11758 15946 26300 35771 39229 52723 58528 78834 94334 107927 124844 146500

Pendency

Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 TOTAL

15412 9470 8528 8858 13058 16543 17537 14661 11331 11601 14749 14000 155748

11758 4188 10354 9471 3458 13494 5805 20306 15500 13593 16917 21656 146500

3654 8936 7110 6497 16097 19146 30878 25233 21064 19072 16904 9248

DELIVERY COMPLIANCE = 94.1 % AGAINST THE TARGETED 95%

SALE TREND OF EYEBOLTS

TARGET: To improve the delivery compliance from 76% to 95% by 31st May 2010. It will minimize the sale loss to 2.73 lac/annum
Below shown graph is self explanatory: the set target has been achieved

TREND OF EYEBOLT SALE SALE VALUE (IN LACS) 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00

9.25 2.11 2.55 0.86

Target Line 4.55 Lac

3.87 0.80 2.35

12.37

13.95 10.80

6.09

6.58

Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar09 09 09 09 09 09 09 09 09 10 10 10 Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar09 09 09 09 09 09 09 09 09 10 10 10

SALE VALUE (In Lac) 9.25 0.86 2.11 2.55 0.80 3.87 2.35 6.09 12.37 10.80 6.58 13.95

MONTH

Sale of 71.58 lac during 2009-2010 has been done against the budgeted 54.58 lac

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OTHER MEASURES SHOWING THE EFFECT OF IMPROVEMENT

MONTHLY AVERAGE COMPARISON IN TERMS OF QTY.DISPATCHED
16916.5 20000.0 15000.0 10000.0 5000.0 0.0
BEFORE (AprilNov09) 9854.3 AFTER (Dec09March10) 16916.5

9854.3

QTY (In Nos.)

MONTHLY AVERAGE COMPARISON IN TERMS OF WEIGHT DISPATCHED

11336.9 12000.0 10000.0 8000.0 6000.0 4000.0 2000.0 0.0 BEFORE (AprilNov09) 3639.0 AFTER (Dec09March10) 11336.9 3639.0

WEIGHT (In Kg)

MONTHLY AVERAGE COMPARISON IN TERMS OF SALE VALUE

1092420.8
1200000.0 1000000.0 800000.0 600000.0 400000.0 200000.0 0.0 SALE VALUE (In RS/-) BEFORE (April-Nov09) 348491.9 AFTER (Dec09-March10) 1092420.8

348491.9

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TANGIBLE BENIFITS:
Top line is increased by 17 Lac. Sale of 71.58 lac has been done against the budgeted 54.58 lac during 2009-10 Delivery compliance is increased to 94.1% against 76% Reduction in material movement by distance of 101.02 Metre Saving of 76.09 Shifts, Spare capacity can be utilized for other valuable products

INTANGIBLE BENIFITS:
Process Cost Reduction Input Cost Reduction Morale of employee is enhanced Reduced Inventory Quick change over time Learning of Project by Project approach of Improvement

32

OTHER CONTROLS FOR HOLDING THE GAINS:To hold the gains of improvement following has been planned as regular feature in future: Control during operations will be done through use of feedback loop Actual performance Vs. Standard performance and action on the variation observed. Initially analysis will be reviewed in Monthly Operational Review Meeting (ORM) & later on in Management Review Meeting (MRM). Conducting frequent training programs for Workers, Supervisors & Staff Members. Conduct monthly meeting with Production, Quality & Tool Room Monthly trend will be displayed on company display board.

33

CONCLUSION AND RECOMMENDATIONS

The whole project revealed that regular follow-up / interaction / awareness / training programs help in achieving the set target. This whole project was concentrated on increasing the awareness on new technology & material movement activity in workers / supervisors so they start taking it as the opportunity for improvement.

ACKNOWLEDGEMENTS
For the successful completion of the project, we are thankful to,
Our guide, Mr. Naresh Chawla for providing necessary advice & guidelines during the entire journey of the project. Management of SKG Engineering Company for giving us the permission for organizing project, training & awareness programs. Engineering, NPD, Tool Room, Production & Quality staff for the implementation of required changes.

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