Transcript Building Quality Supply Base

“Building Quality Supply Base”
Harinder Jeet Singh
Principal Counselor & Head
22 June 2011
© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
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“Building Quality Supply Base”
India : GDP Growth and Contribution of
Manufacturing sector
India - GDP growth % vs. Manufacturing contribution
25
20
15
10
5
-5
1960
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-10
GDP growth (annual %)
Manufacturing, value added (% of GDP)
Source : World Bank
Manufacturing sector contribution to GDP has always
been consistent
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“Building Quality Supply Base”
India’s Manufacturing Competitiveness
Proven Product
Development
Capabilities
Stable Economic
Policies
Proximity to
Markets
High Quality
Standards
India as a
manufacturing
hub
Competitive
Manufacturing
Cost
Large and growing
domestic demand
Availability of
manpower
Export Potential
Indian Manufacturing positioned for a higher growth rate
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“Building Quality Supply Base”
Some interesting facts about Indian MSMEs
(Supply Base)
• 8% contribution towards India’s GDP
• Account for 45% of manufacturing output
• More than 26 million spread over the country
• Producing 6000+ products
• Employment to 59 million+ people
• Share 40% to national exports currently
• Growing at 35% over the last 2 years
Unleash the hidden potential
Source : MSME Annual Report 2009-10
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“Building Quality Supply Base”
What is Quality Supply Base all about ?
Improve
Productivity
?
Revenue
generation?
Improve
Quality ?
?
Maximize
Production
?
Mfg Cost
reduction?
Energy
saving?
22 June 2011
Technology
up?
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CII-AVANTHA Centre for Competitiveness for SMEs
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“Building Quality Supply Base”
What is Quality Supply Base all about ?
Improve
Productivity
?
Revenue
generation?
Improve
Quality ?
PEOPLE
and
?
Mfg Cost
reduction?
SYSTEMS
Energy
saving?
Maximize
Production
?
Technology
up?
Too many parameters to work upon ?
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“Building Quality Supply Base”
Element # 1
 Standardized work
 Use Techniques & Technology in process
improvements
 Prevention systems
 Feedback and control systems
 Customer supplier relation building
Systems robustness – the first step
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“Building Quality Supply Base”
Standardization as Base
• Start with work standards - First
– Need based updation of standards
– Work instructions in local languages
– Visual standards
• Reaching the mass is the key
• Focus on standardization while building capacities
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“Building Quality Supply Base”
A Work Standard Example
Explanatory
Photographs
Explains the
operation sequence
Explains the quality, safety
& standard related points
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“Building Quality Supply Base”
Element # 1
 Standardized work
 Use Techniques & Technology in process
improvements
 Prevention systems
 Feedback and control systems
 Customer supplier relation building
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CII-AVANTHA Centre for Competitiveness for SMEs
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“Building Quality Supply Base”
Element # 1
- Use Techniques & Technology in process
improvements
-
5S, 3M, SMED
Quality Circle tools
Kaizen
Value Stream Mapping (VSM)
Failure modes and effects analysis (FMEA)
- Special focus on Low cost automations
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“Building Quality Supply Base”
Element # 1
 Standardized work
 Use Techniques & Technology in process
improvements
 Prevention systems
 Feedback and control systems
 Customer supplier relation building
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© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
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“Building Quality Supply Base”
Element # 1
 Prevention systems
– Extracting the advantage of technology &
automations
– Shift from Time based to Cycle Based maintenance
– Process Maintenance
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CII-AVANTHA Centre for Competitiveness for SMEs
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“Building Quality Supply Base”
Element # 1
 Standardized work
 Use Techniques & Technology in process
improvements
 Prevention systems
 Feedback and control systems
 Customer supplier relation building
22 June 2011
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CII-AVANTHA Centre for Competitiveness for SMEs
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“Building Quality Supply Base”
Element # 1
Feedback and control systems
 Traceability
 Visual control – Seeing is believing
 IT enabled Quality & production control systems
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“Building Quality Supply Base”
Visual control – “Seeing is believing”
Visual control in material identification
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“Building Quality Supply Base”
Visual Communication of an Abnormality
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“Building Quality Supply Base”
Element # 2
• Safe and comfortable
• Engagement of People
• Imbibe Daily Work Management
Bringing the Ownership
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“Building Quality Supply Base”
Element # 2
• Safe and comfortable work environment
• Engagement of People
• Imbibe Daily Work Management
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“Building Quality Supply Base”
Safe and comfortable work environment
Spot coolers
Casting shop:
Adverse Conditions:
Heat resistant
protective gear
1.Molten metal
handling
2.55C ambient
temperature
Air regulator
3.Working with die
temperature of 350C
22 June 2011
Comfortable
safety shoes
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“Building Quality Supply Base”
Daily Management System
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Role Clarity
Development through collaborative approach
- Openness to provide and implement ideas
Higher the levels – wider the focus
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“Building Quality Supply Base”
Higher the levels – wider the focus
Observation by
Supervisors
View
by
various
levels
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Observation by
Executives
Observation by
Manager
Observation by
Plant Head
Check on Check function responsibility at every level
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“Building Quality Supply Base”
Element # 3
 Communication across level
 Skill management – Multiskilling & structured training
 Capability building - Development of specialists
Build systems adaptive to changes
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“Building Quality Supply Base”
Element # 3
 Communication across level
 Skill management – Multiskilling & structured training
 Capability building - Development of specialists
Build systems adaptive to changes
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CII-AVANTHA Centre for Competitiveness for SMEs
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“Building Quality Supply Base”
Element # 3
Communication across levels
 Seamless communication
 Change control displays
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“Building Quality Supply Base”
Seamless Communication
2-way Communication at all levels
Dept. Head’s Monthly
Communication Meeting
Dept. Head’s Daily
Communication Meeting
“Communication is the real work of leadership.”
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“Building Quality Supply Base”
Element # 3
 Communication across level
 Skill management – Multiskilling & structured training
 Capability building - Development of specialists
Build systems adaptive to changes
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“Building Quality Supply Base”
Model of Manufacturing Excellence
Ownership
Sustainability
Involvement
Integration
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“Building Quality Supply Base”
Building Quality Supply Chain
The CII - CLUSTER approach
•
Getting Together
•
Learning together
•
Achieving together
By
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“Building Quality Supply Base”
CII – CLUSTER ROAD MAP
Management System
• H R Management
• Cost Management
• Energy Management
• SMED
• MIS - Key Indicators
Equipment Quality
• Model Machine
• Breakdown Reduction
Employee Quality (TEI)
• 3M
• 5S
• Kaizen, Suggestion Scheme
• Cost Consciousness
22 June 2011
Reliable Quality &
Delivery at low cost
Competitiveness
Product Performance
• Flow Manufacturing
• Problem solving
• Poka Yoke
• Product Profitability
Good Management
Practices
Healthy
Equipments
Motivated
Employees
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“Building Quality Supply Base”
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“Building Quality Supply Base”
Cluster Methodology
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Assessment & short Listings
Kick-off
Common Training Programmes
Individual handholding visits by counselors
Review Meetings in the premises of one of the
companies followed by visit to the company.
• Documentation and sharing of improvements
• Closing ceremony
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“Building Quality Supply Base”
KEY INDICATORS FOR SUPPLY CHAIN
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Not Right First Time
Stock Turnover (Inventory Turn Ratio-ITR)
Delivery Schedule Achievement
Floor Space Utilization
5S
Quick Changeover- Customer Response
Safety
Absenteeism
No. of suggestions per employee
Employees involved in Improvement Activities
Cost of Internal Non-conformities
Machine Breakdown (Hours)
Machine Breakdown (Frequency)
Energy Cost Savings
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“Building Quality Supply Base”
Major Benefits CII - Cluster
CII – MOHALI CLUSTER BENEFITS
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“Building Quality Supply Base”
Major Benefits CII - Cluster
CII – JALANDHAR CLUSTER BENEFITS
Turnover Range of Cos – Rs 10 Crores to Rs 35 Crores
Product Profile of Cos – Hand Tools
Tangible Results (Avrg) of Jalandhar Cluster
+ Before Joining the cluster
# One year after joining the cluster
> > > Total Savings achieved by
Cluster companies - Rs. 9.5 Crores < < <
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CII-AVANTHA Centre for Competitiveness for SMEs
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“Building Quality Supply Base”
Major Benefits CII - Cluster
CII – GURGAON CLUSTER BENEFITS
Turnover Range of Co’s – Rs 2 Crores to Rs 25 Crores
Product Profile of Co’s – Auto Components
Total Savings achieved by
Cluster companies - Rs. 2.5Crores
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Any Queries can be forwarded to
[email protected]
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