Upload
chaitanya-bijur
View
157
Download
2
Embed Size (px)
Citation preview
PREFACE
Master of Business Administration is a course, which combines both theory and its applications as its contents of study in the field of management. As part and parcel of this course, every aspirant has to undergo practical exposure in an organization. The purpose of this exposure is to expose the student of management sciences to real life situations existing in the organization and to provide an insight into the various functions, who can visualize things, what they have been taught in classrooms.
It is in practical training that the effectiveness of management itself is realized. This report is a continuation of that tradition. It is an attempt to present an account of practical knowledge and observations gathered during the analysis. This report includes the information about JS Auto and its related issues – productivity issues, relocation issues. The plant is not well designed and there is no proper streamlining of the parts supply to the three wheeler assembly area. We try to analyse the issues of JS Auto and figured out into a satisfactory package.
JS Auto Pvt. Ltd. Kanpur
2
ACKNOWLEDGEMENT
The successful accomplishment of this project and the contentment it accounts for would be
incomplete without the mention of people whose ceaseless cooperation made it possible,
whose constant guidance and encouragement crowned all efforts with success.
We are grateful to Dr. Deepu Philip, Assistant professor of IIT kanpur for the guidance,
inspiration and constructive suggestions which helped us to sort out all the problems in
concept clarifications.
We would also like to thank the JSA staff and management for all the cooperation without
whose support, the project would not have reached its present state.
Finally, we also take this opportunity to appreciate the institute, IITK, for providing this
learning opportunity and also assisting in infrastructure and administrative work. We are
grateful to all the professors of IME Department for their guidance and support at each step.
Their insights and teachings have played a critical role in developing this report.
JS Auto Pvt. Ltd. Kanpur
3
ABSTRACT
This report throws light on the production process, relocation of layout and inventory of raw
materials in the manufacturing process of JS Auto, Panki industrial area, Kanpur.
JS Auto is a leading 3 wheeler automotive industry in Kanpur, India. We focused our study
on diesel section of 3 wheeler auto. The plant was visited several times to get familiar with
the working of company, the production plan was understood. The plant design is not
efficient and there is no efficient and effective streamlining of the parts supply to the three
wheeler assembly area.
From the study and observations we got the hint of some of the flaws in the system which
resulted in the reduced output:
• Inefficient layout
• No stable process plan
• Lack of commitment to improve the plant capacity
• Raw material purchase issues / Lack of availability of the raw materials
• Most of the processes being manual
• Poor quality check of incoming raw material
After analysing the various flaws and the cost factor used in improving them, the most
economical way of improving productivity is:
• To change the layout plan
• Overall process productivity improvement
• Manage the in-house and out outside raw material availability
With cost constraint keep in mind different proposed new layout plan has been suggested
which requires minimum shuffling of the shop floor and reduces the transportation time of
semi-finished goods from one shop to other.
The purpose of this study is to present the major aspects of plant redesign and overall
productivity improvement. Although one person cannot be an expert in all the phases
involved in plant redesign, it is necessary to be acquainted with the general problems and
approach in each of the phases. It may not be connected directly with the final detailed design
JS Auto Pvt. Ltd. Kanpur
4
of the equipment, and the designer of the equipment may have little influence on a decision
by management as to whether or not a given return on an investment is adequate to justify
construction of a complete plant. Nevertheless, if the overall redesign study is to be
successful, close teamwork is necessary among the various groups of engineers and others
working on the different phases of the study. The most effective teamwork and coordination
of efforts are required when each of the engineers and others in the specialized groups is
aware of the many functions in the overall redesign study.
JS Auto Pvt. Ltd. Kanpur
5
INTRODUCTION
The auto industry is growing strong recently owing to a sudden surge in demand. The small
commercial vehicle (SCV) segment, which is growing at a rate of 18% annually on the back
of strong demand from hinterland and boom in construction, retail and production sectors,
has caught the fancy of commercial vehicle makers1. This has attracted many big players like
TATA into this segment. With the entry of TATA ACE in the goods carrier segment and
TATA MAGIC in the passenger carrier segment, JSA is expected to face a tough competition
in future. Hence it is very necessary to re-engineer itself so that it can sustain the competition.
JS Auto is a 3 wheeler and 5 wheeler producer in Kanpur, India established in 1986. They are
the Exporter and Manufacturer of auto to domestic market as well as countries like
Bangladesh and Sri Lanka. They have their potential market in Uttar Pradesh, Rajasthan,
Bihar, Madhya Pradesh. The company is ISO 9001:2008 certified by UKAS (The United
Kingdom Accreditation Service). Their emphasis is to provide Best quality products at great
prices and on-time product delivery
The company has two product lines passenger carrier and goods carrier which include:
• Passenger Carrier with Hard Top (Diesel Variant)
• Load Carrier with Hard Top (Diesel Variant)
• Load Carrier with Hard Top (Diesel Variant)
• Passenger Carrier and Chassis ( Diesel Variant)
• Load Carrier Pick Up Van
• Load Carrier (Petrol / CNG Variant)
• Tipper (Diesel Variant)
• Passenger Carrier (Petrol / CNG Variant)
• Pick Up Van (Petrol / CNG Variant)
• Passenger Carrier with Soft Top (Diesel Variant).
The monthly production of automobiles is around 700 to 750. With the increasing demand in
3 wheelers sector, the demand of their product is continuously increasing. The company
1 http://www.dnaindia.com/money/report_small-‐commercial-‐vehicles-‐fly-‐as-‐rural-‐demand-‐strengthens_1468750
JS Auto Pvt. Ltd. Kanpur
6
being one out of few of its kind (producing 3 wheeler passenger autos) has a great share in
the market. Its competitor in central India for 3 wheeler passenger carrier is Scooter India
situated in Lucknow.
Currently the company is facing the problem of availability and quality of raw material and
lesser productivity as compared to the demand in market. It needs to re-engineer its
processes, layouts and scheduling to make the maximum out of the installed capacity.
JS Auto Pvt. Ltd. Kanpur
7
METHODS APPLIED
Plant redesign includes all engineering and managerial aspects involved in the development
of either a new, modified, or expanded industrial plant. In this development, we made
economic evaluations of developing a plant layout for coordination of the overall operations.
Before any detailed work is done on the redesign, the technical and economic factors of the
proposed process should be examined. The various reactions and physical processes involved
must be considered. A preliminary survey of this type gave us an indication of the probable
success of the project and also showed what additional information is necessary to make a
complete evaluation.
To find the flaws in the working of system, various aspects of the production process were
observed. Data was collected from the plant and discussion with the employees, supervisors
and managers. And then analysis on the data was carried out. On the basis of the data
analysis, marketing research for consumer feedback and first hand observations, suggestions
are being made through this report. These are intended to ensure better utilisation of the
installed capacity.
JS Auto Pvt. Ltd. Kanpur
8
OBSERVATIONS
The following are the problems we found that was restricting the plant to meet its production
target:
Not so well planned layout: The current layout plan of the plant is not properly planned and
random as per the olden days. It has not modified to fit to the modern production plan. Due to
this the in-house transport of semi finished goods take little bit greater time and thus results in
reduced efficiency. Also as these parts are being moved from one part of plant to the other,
the wear and tear of the material during the transportation occur which results in depreciation
in the quality factor. The semi finished auto without body is sent to other plant situated in
Dada Nagar area which is around 20 km away from the present plant. Some of the inhouse
components are made in Panki plant and some in Dada Nagar plant. The current layout plan
of the plant is shown in the appendix.
As can be seen from the layout assembly of the semi-finished goods is at a corner of plant
this causes a lot of movement from each corner of the plant to assembly and thus a lot of time
is consumed. Also the assembled vehicle is moved to the Dada Nagar factory for bodily
fitting and painting. There is no outlet door from the assembly and the assembled vehicles
cross the whole plant to move out through gate 4 to Dada Nagar factory. This whole
movement is also time and labour consuming.
Most of the processes being manual: In the plant most of the work used to be done
manually consuming lots of labor efforts and time consumption which results in cost
incurred, prone to get defects not only during transportation from one place to another like
chance of axle plates fell down, but also with in processes like manual paintings of chassis
which can result in unequal paint covering, leave unpainted portion leads more prone to rust
and thus reduction in quality. Few more examples like these are: Gear box assembly with
differentials is being carried out manually with productivity of 1 gear box/hour which has a
tendency of loosen nuts, un joint parts. Thus lots of rework again cause delay in further
assemblies, labor hours and effort consumption which are not getting payable by either
vendor or consumer.
Another example is including cutting of metal rods. Due to unequal size of metal rods pieces,
difficulty comes under lathes operations to correct them (Cut the length) or at welding station
(to join them to increase length), which can results in imbalance of loose joints due to
JS Auto Pvt. Ltd. Kanpur
9
mismatch dimensions in final assembly. During welding also, errors are prone to occur due
to rough handling of welding angle tips, shaking hands of workers which are considered as
human errors and results in improper and rough welding joints. These are only few examples,
but there are lot of other jobs which are handled manually and results in either rework or
catch defects in later stage.
Poor quality check of incoming raw material: The raw material from the supplier and the
semi finished goods imported are not properly checked. The sampling plan of the company is
as attached in the appendix.
The sampling plan is less frequently followed and also the sampling is not simple random.
Parts such as gear box and engine are meant to have 100% sampling but some pieces are
missed sometimes. This results in faulty parts being assembled and later during PDI or by
customer complaint they come into picture.
No stable process plan: The process plan for the manufacturing of the automotive vehicle is
defined but there is no stability in following the same. Due to JSA being a small player in the
market the supplier do not pay much attention to their demands. Thus many a times the
available inventory parts are reengineered to fit to other kind of model. Due to this extra
labour and cost is incurred and also time is wasted. Demand being high the employees have
no other option but to reengineer the available parts. Also the data management is not proper.
the record of the various processes and products is kept manually. We can still see those
entries in the register even in this technological era computers and modern information
system.
JS Auto Pvt. Ltd. Kanpur
10
FLOW ANALYSIS
We uses flow diagrams to show the sequence of equipment and unit operations in the overall
process, to simplify visualization of the manufacturing procedures, and to indicate the
quantities of materials and energy transfer.
JS Auto Pvt. Ltd. Kanpur
11
We have included the time taken for each equipment in a particular section. We have also tried to incorporate time taken to travel between different sections based on the distance and the feedbacks we received from the workers.
JS Auto Pvt. Ltd. Kanpur
12
LAYOUT ANALYSIS
Fig1. Current Layout of JSA manufacturing plant
JS Auto Pvt. Ltd. Kanpur
13
PROPOSED SOLUTIONS
Suggestion 1: Proximity of Machine Shop and the Welding Department
In Table 2, we can observe that the flow count between press shop and shearing section is 21,
between welding shop and phosphating units 18 and that of phosphating unit and painting
section is 27. But these departments are located adjacent to each other. Hence they are
already optimised with respect to their locations.
Table1. Distance (in feet) between the respective departments
Table2. Number of flows between the respective departments
Shifting the press shop near front show department will certainly minimise the overall flow,
and hence the time requirement. But considering the huge cost that will be incurred in
moving the heavy machinery, we have decided not to tinker with their positions in the current
phase of improvement.
So we move on to the next major concern, where we see that there is heavy flow between
machine shop and welding shop. Also these departments have large distance between them,
of the magnitude of around 100 feet.
JS Auto Pvt. Ltd. Kanpur
14
Fig2. Flow diagram of rear wheel tube
In the figure 1, above we can see for rear wheel tube that additional 8 minutes are required
for transportation of the material to and fro the machine shop and the welding shop.
In order to achieve the target value of producing 700 tempos in one month, the plant is
required to produce one tempo every 15 minutes. Hence this distance adds a considerable
strain on the production. We verified this with the manager of the machine shop department
and he confirmed that the distance limits their capacity to produce considerably. Hence it
becomes the bottleneck for the plant.
The proposed remedial measure is that the welding shop must be as close to machine shop as
possible. Following are the constraints we encountered while moving either of these shops
1. Space constraints near welding and machine shops.
2. Welding has to be closer to the phosphating section, as well.
3. Machine shop is loaded with heavy machines which are not easy to be moved.
Fig3. Machine Shop
JS Auto Pvt. Ltd. Kanpur
15
Weighing the different available options, we arrive at a conclusion:
1. The size of machine shop may be increased by extending it up to the heater section.
2. A welding machine may be placed in the machine shop itself so that the time due to
movement can be saved.
3. Arc welding is used for welding the components like rear wheel tube manufactured in
machine shop. Hence shifting of welding machine to machine shop is economical and
hassle free.
Fig4. Proposed layout for Suggestion 1
According to the data we collected, this will help in increasing the production capacity by
25% (8 minutes/ 23 minutes) and reduce the cycle time to the desired value of around 15
minutes. This will ensure that the production target of 700 is met without any overtime.
Note: This is one of the solutions to ensure that the target is met. There are other factors like
material procurement that may be limiting the production.
JS Auto Pvt. Ltd. Kanpur
16
Suggestion 2: Moving the Accessories department to increase the production capacity
Fig5. Proposed Layout for suggestion 2
In the proposed layout, the accessories section will be moved to other plant and press shop
will be relocated to this place. The area previously under Press shop will be used for the
expansion of Assembly Shop. The current layout of Assembly Shop permits assembling of 29
tempos at a time. With this suggested relocation the capacity of the Assembly shop will be
increased to assembling of 50 tempos at a time. With this relocation, assembling of tempos
can be worked in an efficient manner. Apart from this a part of the original Press Shop will
be used for creating a storehouse for stocking various in house as well as outhouse
components as well as raw material like metal sheets, rods, engines, CNG cylinders, gear
boxes and other finished components. Locating this store house at this location will give an
easy access to Cutting Shop, Shearing Shop and Assembly Shop. The location of storehouse
near the exit /entry (Gate) area of the manufacturing plant will eased the transaction of these
outhouse components. Currently the raw material and the finished components are stored in
various locations in the plant. The metal sheets, engines, cylinders are stored in space outside
the Press Shop. While the in house finished components are stored inside the Press Shop. By
creating one location for storing all the raw materials and finished components, the
JS Auto Pvt. Ltd. Kanpur
17
employees of JSA will be in better position to keep track of the inventory. Shifting the
accessories section outside this plant will not only create enough space for the expansion of
Assembly shop but it will also save the extra time and labour which get consumed in
transporting the semi-finished tempos to other plant location, of the same company, for
painting and body fitting and then bringing the tempo back to this plant for fitting the
accessories in the tempo’s. Another advantage of this relocation is that it will reduce the
distance between Press Shop and Front Show Department from 200” to 100” (as can be seen
from the table 3 and table 4) and the number of transactions taking between these sections is
5, hence it will result in efficient working as workers will have to cover less distance now.
Also after relocation, the distance between machine shop and assembly shop will be reduced;
this would reduce the time to carry the machine shop’s products to Shop floor. There are
some issues related to inefficient supply of raw material to Shop floor from Machine shop.
Because of this inefficient supply, the shop floor chassis assembly takes more time than
normal time, which is biggest bottleneck for the final product assembly. It directly affects
activities of other sections and stopped different activities – the production of chassis,
welding of equipment; front show and rear show building and other small activities.
Cutting Shop
Shearing
Press Shop
Front Show Department
Machine Shop
Welding Shop
Phosphating
Painting
Cutting Shop x x x x 130 x x x
Shearing x x 10 190 50 x x x Press Shop x x x 100 60 90 x x Front Show Department x x x x 240 340 320
Machine Shop x x x x x 100 200 180
Welding Shop x x x x x x 60 40
Phosphating x x x x x x x 20 Painting x x x x x x x x Table 3. Distance (in feet) between the respective departments
JS Auto Pvt. Ltd. Kanpur
18
Cutting Shop
Shearing
Press Shop
Front Show Department
Machine Shop
Welding Shop
Phosphating
Painting
Cutting Shop x x x x 1 x x x
Shearing x x 21 4 x x x x Press Shop x x x 5 1 13 3 x Front Show Department x x x x 1 5 3 x
Machine Shop x x x x x 6 3 x
Welding Shop x x x x x x 18 x
Phosphating x x x x x x x 27 Painting x x x x x x x x Table 4. Number of flows between the respective departments
JS Auto Pvt. Ltd. Kanpur
19
Suggestion 3: Devising a Weekly Production Schedule
Figure6. Run chart of autos produced in February
Currently, the components procured from outside are creating the inventory problem. The
data and schedule is being maintained at monthly basis. There are high fluctuations as a result
of it. The components required in emergency, are often being neglected somehow or the
other.
So a weekly schedule may be helpful in such a situation.
Figure7. Run chart of autos produced in March
0
10
20
30
40
50
60
70
1 3 5 7 9 11 13 15 17 19 21 23 25 27
No. of autos produced daily (February)
No. of autos
0
5
10
15
20
25
30
35
40
45
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
No. of autos produced daily (March)
No. of autos
JS Auto Pvt. Ltd. Kanpur
20
Suggestion 4: Marketing Research Findings
Figure8.: depicting the frame width of the front support which is proposed to be reduced
Marketing research was carried and sample consisted of the local tempo drivers. The result
about the tempo quality and life cycle was appreciable. Drivers found the vehicle reliable and
usually problem free. However following problems were discovered:
1. The width of the side-support of the front (refer to figure) obstructs the view of the
driver, to see passengers waiting on road-sides.
2. The brake pin needs frequent replacement.
It was also discovered that the brake pin adjoining the brake shoes, required frequent
replacement. Especially, due to the fact that the brakes are used quite religiously, on the local
roads. Hence the design for the brake pin arrangement may be reconsidered.
JS Auto Pvt. Ltd. Kanpur
21
Suggestion 5: Ergonomic Considerations
Ergonomic considerations are meant to provide the workers a holistic and safe work environment. This increases their motivation to work and hence ultimately reflects through increase in efficiency of the individuals. The major ergonomic considerations are:
1. Biomechanics
2. Workplace illumination
3. Physical space arrangement
4. Manual material handling
5. Visual display terminals
6. Temperature and proper ventilations
Figure6. workspace congestion at Machine Shop
The already proposed expansion of machine shop provides us an opportunity to better utilise the space capacity and improve upon the existing layout. In order to make the place safer, and aligned for faster production and material movement.
JS Auto Pvt. Ltd. Kanpur
22
APPENDIX
In-house Components List
1. Chassis
2. Front show
3. Clutch paddle
4. Accelerator paddle
5. Brake paddle
6. Back gear lever (bracket)
7. Furse (plane furse)
8. Bottom tray
9. Gear stand
10. Diesel tank
11. Diesel tank patti (small)
12. Diesel tank patti (big)
13. Dhanush (gear mounting bracket)
14. Kamani jhula (sucle)
15. Buffer plate
16. U-clamp
17. Rear wheel tube
18. C-clamp
19. Cleaner flunge
20. Engine mount bracket
21. Surg pank
22. Handle bare
23. Rim
24. DOM (inner mudguard)
25. Mudguard
26. Heat sealed
27. Coolant box
28. Cover bottom
JS Auto Pvt. Ltd. Kanpur
23
References:
• A guide to ergonomics assessed on 15 april, 2012
(http://www.nclabor.com/osha/etta/indguide/ig9.pdf)
• JS Auto Website
(http://www.jsauto.co.in/)
• Operations Management For Competitive Advantage,” Tenth Edition” by Chase –
Jacobs – Aquilano, Tata McGrow- Hill Edition
• http://www.dnaindia.com/money/report_small-‐commercial-‐vehicles-‐fly-‐as-‐rural-‐demand-‐
strengthens_1468750