SUPPLIER CLUSTER for F 14

Automotive Sector

SUPPLIER CLUSTERfor

F 14

Suhas GokhaleMahindra & Mahindra

Supplier Quality Assurance-Sector AD

9881075056

Automotive Sector

Cluster member details

Sr. No.

Supplier name

Contact person Mobile no. E mail ID

1

2

3

4

5

6

Automotive Sector

M & M contact details

Sr. No. Contact person Mobile no. E mail ID1 Suhas Gokhale 9881075056 [email protected]

2

3

4

Sr. No. Contact person Mobile no. E mail ID

1

Consultant contact details

mailto:[email protected]

Automotive Sector

CLUSTER METHODOLOGY

INTERACTIONS and INTERFACES are

– Common Trainings

– Hand Holding Visits

– Monthly Review Meetings

– Plant Visits to Tier II Suppliers (need based)

Automotive Sector

COMMON TRAININGS

Topics of training based on the Roadmap Common Training for all key members Each deptt. to nominate min. 1 member CEO & Coordinator to attend training Coordinators to train other employees Training will be spread over full period Tier II company representatives to attend

Automotive Sector

HAND HOLDING VISITS : PURPOSE To elaborate and customize what has been taught in

Training programs. To help the units to identify improvement projects /

activities, in line with what has been taught. Discuss on the implementing the improvements identified

and suggest different options. Review progress on the work assigned.

Automotive Sector

HAND HOLDING VISITS : METHOD

GEMBA visit by the CONSULTANT on agreed dates.

Director, plant head and coordinator to be available.

The coordinator of the Unit to record all points of action discussed during the visits and commit target dates.

Review of earlier Hand holding visit points.

Digital camera is strongly recommended for capturing and analyzing “Before and After” situations.

Automotive Sector

INTERNAL REVIEWS It is very much essential that Unit head conducts internal

review before the cluster MRM.

The purpose of internal review is to review the progress in a formal way, identify gaps and action plan to fill the gap and record.

It shall be twice a month.

Automotive Sector

MONTHLY REVIEW MEETINGS MRM is a monthly meeting .

Director, plant head and deptt head to attend. Companies

Coordinators from Mahindra will attend (to possible extent).

Consultant.

Special invitees based on the need.– Experts / Industrialists

Automotive Sector

PURPOSE OF MRM To share the experiences.

To review the progress and results.

To have direct interaction between all key persons involved in the cluster activities.

To give / receive feedback on implementation.

To share concerns and suggestions.

Automotive Sector

CONDUCT OF MRMs Frequency : Monthly.

Timing : 2 to 4 Hours.

Dates to be declared at beginning of cluster programme itself.

Coordination : Consultant and Plant head.

Automotive Sector

SUCCESS OF MRMs

It highly depends on Director, plant head , deptt head attending the MRMs

REGULARLY. Proper and detail presentations (ppt) by the

Coordinator. Zone wise achievements, Learning during the month, case studies.

Conducting internal trainings to all employees in the unit by the coordinator.

Automotive Sector

Performance Indicators (also called as ‘Dash Board’)

Automotive Sector

Performance IndicatorsSr. No

Impact Area Parameter Ref.Slide

No

1 Q Defect data bank (Opening balance and closing balance) 15

2 Q No of days without defect (Plant wise, product line wise) 17

3 Q,C Cost of Poor Quality in Rs.: Trend to be monitored. 20

4 Q MIS -Q and HEP projects (Nos at beginning and at end) 21

5 P VSM to reduce thru put time on major product line :before/after 66

6 P, C Labour Productivity in terms of kgs/person/hour 67

7 C Inventory management thru ITR (Inventory turn ratio) 68

8 D Delivery schedule achievement (in % ) –based on trigger/schedule 71

9 C, D Capacity increase by OEE improvement (on bottleneck m/cs) 72

10 S Safety :-No of accidents (major and minor both) 74

11 M 1 S, 2 S Score (as per scoring sheet) 75

12 E Energy cost reduction (in Rs or in Units) % of sales 76

Automotive Sector

1) Defect Data bank

It includes Defect found at Mahindra, Defects found at PDI, Inprocess defects at Neminath, Defects found at Incoming inspection.

Defect modes to be captured as below :-

Sr No Part No Part Name

Defect Mode

No of parts

Defect found at

Date of detection

Tool deployed

status

1

2

3

Data of F13 (full year) V/s F 14 (full year) will give Before and After.Target :- 80 % reduction over F13.Data of F 13 (full year) is ‘Agenda for action’.Lean tools like HEP, MIS Q, Kaizen to be applied to these Defect modes.

Automotive Sector

1 .1 )Product Quality

This indicator measures Product Quality Levels Expressed in ‘No. of defective parts per million’ This indicator should decrease over time. There are three indicators

– Customer complaints (No.s)– Customer returns(ppm)– In process Rejection (ppm)

Automotive Sector

2) No of days without Defect

It includes Defect found at Mahindra, Defects found at PDI, Inprocess defects at Neminath, Defects found at Incoming inspection.

Defect be captured as Q CLOCK

Data of F13 (full year) V/s F 14 (full year) will give Before and After.Target :- 80 % reduction over F13.Data of F 13 (full year) is ‘Agenda for action’.Lean tools like HEP, MIS Q, Kaizen to be applied to these Defect modes.

Automotive Sector

Q Clock

Automotive Sector

Customer Complaint For xxxxxxx LINE or SHOP.

Automotive Sector

3 )Cost Of Poor Quality

This indicator measures Product Quality Levels Expressed in Rs. This indicator should decrease over time. There are three elements

– Rejection– Rework– Segregation and inspection

Automotive Sector

4 )MIS –Q and HEP Projects

Monitor Before and After

Automotive Sector

MAHINDRA INSPECTION STANDARD-QUALITY

MIS-Q

Automotive Sector

Purpose : To identify & Confirm Role of the Part at M&M and upto End Customer .

Parameters distributed into

Fit Finish Function

MIS-Q

Automotive Sector

Mahindra Inspection Standard - Quality

MIS-QSupplier Name Supplier Code

PAGE

Model PART NAME PART NUMBER CL-

S.NO. INSPECTION ITEM CRITERIA INSPECTION METHOD

INSPECTION TOOL

SAMPLING PLAN

INSPECTIONSTAGE

REMARKS

A FITMENT

1 2 3

B FINISH

1 2 3 C FUNCTION 1 2 3

All variable parameters should be recorded All functional parameters should have traceability to process control records.Process capability report should be submitted at monthly frequency.Endurance test reports to be submitted as per frequency

Origin Date : Rev No : Rev Date: For M&M use only : MIS-Q Sr No : Prepared By : Approved By :PQA/SQA/F/23 Rev : 0.00 Date : 07-Dec-10

Automotive Sector

MIS-Q - Tracking

Quality Standard of Part Supplied to M&M. Agreement between M&M and Supplier (sign- off Copy)

Identified by Unique Number allotted by M&M. Document maintained, both at Supplier end & M&M. Copy replaceable - in line with changes in Part Drawing /

Improvement.

MIS-Q

Automotive Sector

Guideline – For FIT parameters

Parameters responsible for fitment of part at M&M This includes dimensional parameters like OD, Hole ID, CD,

PCD , Thickness etc. This also includes the critical visual markings like clip position

on hoses, +/- mark on spring, color code etc. Fit parameters should have qualifying gauge. Variable dimension with sampling plan should have back up.

MIS-Q

Automotive Sector

Guideline – Finish parameters

Mostly appearance related parameters like finish, dent, damage, flashes, waviness, wrinkles etc.

Aesthetic Parameters like shade variation, discoloration etc.

MIS-Q

Automotive Sector

Guideline – Function parameters

Physical / Mechanical properties like proof load, UTS results, Critical raw material Chemical Analysis results, Hardness etc.

Performance test schedule as per DVP with its checking frequency (month of checking)

MIS-Q

Automotive Sector

Human Error Prevention

Automotive Sector

Human Error Prevention

What is Error Proofing?

Principles of Error Proofing

Three Steps for Error Proofing

Human Error Prevention Check list

Exercise

Questions and Answers

Automotive Sector

What is Error Proofing?

Automotive Sector

Three Common Misunderstandings

Attentiveness can prevent errors.

Education/training can prevent errors.

Multi-fold inspection can prevent errors.

Automotive Sector

Can attentiveness prevent errors?

Panicked

Active

Rest or routine work

Tired

Sleep

Physiological State

More than 0.1ExcitedⅣ

Less than 0.000001

Normal and clearⅢ

0.01～ 0.00001Normal and relaxedⅡ

More than 0.1Week consciousnessⅠ

1Unconsciousness０Error Occurrence Rate

Mode of ConsciousnessPhase

Automotive Sector

YesDid he/she intend to follow SOP?

YesDid he/she have skills in following SOP?

Did he/she understand SOP?

Education

No

Training

No No

Motivation

Yes

???

20% 15% 25%

40%

Can education/training prevent errors?

A Deviation from OS (OperationStandard)

Automotive Sector

60%55%

65%

80%

65%

87%95% 98% 99%

0%

20%

40%

60%

80%

100%

Single Double Triple Four- fold Five- fold

Error Detection Rate

Can multi-fold inspection prevent errors?

1-(0.35)5 = 0.99?Error rate = 0.03

Automotive Sector

a b

Which Line is longer? a or b

Automotive Sector

a b

Which Line is longer? a or b

Both unstable consciousness and error-prone work operations come together and lead to human errors.

Automotive Sector

A Case Study: Assembly Process

Apply heated resin to both sides of a product

Forget to apply to one side

Recurrence of errors

1. Error prevention campaign.

Campaign poster

A small error could be a great pain

3 major errors

No hot-melt Forget

Incomplete soldering

2. Additional inspector for error checking.

Automotive Sector

First

Second

Orange

White

Cooling places can be distinguished by using colors

1. Take a product from the line.2. Apply heated resin to one side of the product.3. Cool the product down off the line.4. Pick the product up and apply the resin to the other side.5. Cool the product down again off the line.6. Put the product back to the line.

There is no indication betweenOperations 3 and 5.

Observation of Operations

Automotive Sector

Error Proofing

Improvement of work operations, including materials, machines and methods, with the aim of preventing problems due to human error.

Many names: Foolproof, FP, Poka-yoke, Mistake proofing, Error Proofing etc.　

Improve Human Beings to Fit Operations

Improve Operations to Fit Human Beings

Error Proofing

Automotive Sector

2. Error Proofing Principles

Automotive Sector

Error Proofing Principles

Minimize the effects ofhuman errors.

Elimination Replacement Facilitation Detection Mitigation

Operations

Error Proofing

LossesSmall Large

5% 27% 23% 40% 5%

The percentage indicates the ratio of examplescorresponding to each principle.

Replace the humanoperations with morereliable machines.

Make the operationseasier for workers toperform.

Ensure thatabnormalitiescaused by error aredetected.

Mitigate the effects oferror.

Prevention of Occurrence Minimization of EffectsPrevent the occurrence of human errors

which may cause troubles.

Remove worksusceptible tohuman error from theprocess.

Abnorma-lities Effects

Functions Required

Memory

Perception

Motion

Make the error-proneoperationsunnecessary.

Automate operations. Distinguish partsboxes by colorcoding.

Equipment thatdetects worker'smotions and make analarm.

Electric fuse thatpreventing equipmentbreaks.

ErrorTasksRisks

Automotive Sector

EliminationRemove work susceptible to human error from the process.

Wire

BattensProduct Nylon Belt

Automotive Sector

Error Proofing

Eliminate risks inherent inobjects or objects themselves.

Getting information and filling it ina format

Moving to objects or transferringobjects

Set Conditions

Move

Elim

inat

ion

Mixing or assembling more than oneobjects into one

Mix or Assemble

Set conditions depending on situations

Checking or adjusting objects orschedules

Verify or AdjustEliminate error-prone tasks.

Sub-principlesTasks/Risks to be Eliminated Examples

Error

Touching a hightemperature pipeand getting burnt.

Make the pipe safe bycovering it with insulatingmaterial.

Hand-offTransferring information or objectsfrom a person to another person

Forgetting to putbattens between aproduct and itslifting wires so asnot to damage theproduct.

Use nylon bands instead ofwires, thus making thebattens unnecessary byremoving the propertywhich generates theoperation.

Fill-in

Risks

Task

s

Task Elimination

Risk Elimination

Elimination

Automotive Sector

Elimination

In many cases, process/equipment design must be changed drastically.

Elimination solution can have a great side-effect on cost, productivity and performance. This side-effect must be considered.

Automotive Sector

ReplacementReplace the human operations with more reliable machines.

Sense the shape Light lamps

Sub-assembly Product

Conveyor

Limit SwitchParts Boxes

Lamp

Automotive Sector

Replacement

Automation

Support System

Memory

Sub-principlesFunctions to beReplaced

Give support tools such aschecklist, reminders, guides orsamples to help human beingsto perform the operations morereliably.

Use automation to replacecompletely a particular humanoperation with machines.

Examples

Misreading a workorder sheet andinstalling thewrong parts in asub assembly.

Sense the shapeof the subassembly productmechanically orelectrically and tolight lamps on theappropriate partsboxes.

Error Error Proofing

Forgetting to do apart of operations.

Use a tableshowing thesequence andcontents ofoperations, thusmaking itunnecessary forworkers tomemorize them.

Perception

Motion

Rep

lace

men

t

Automotive Sector

Replacement

Various methods can be considered depending on the number of functions that are replaced.

To replace all functions leads to large-scale and unrealistic solutions.

It is essential to focus on error-prone functions in the operations and replace them.

Automotive Sector

FacilitationMake the operations easier for workers to perform.

Simplification Distinction Adjustment

Work Order SheetParts Box

Common ID Code

Automotive Sector

Facilitation

Decrease the number ofchanges or differences.


Perception

Motion

Simplification

Distinction

Memory

Sub-principlesFunctions to be Facilitated

Distinguish changes or differencesform each other.

Examples

Selecting the wrongparts.

Make a mark oneach parts boxconsistent with acorresponding markon the work-ordersheet.

Misunderstandingthe types of parts.

Color coding of theparts and thearrangement ofparts boxes so as tokeep away separatesimilar parts.

AdjustmentMisreading thework-order sheet.

Making the symbolsor characters whichshow the types ofparts bigger andclearer.

Adjust the properties of operations tosuit the human being's capabilities.

Faci

litat

ion

Automotive Sector

Facilitation

Each solution has limited effectiveness, but its cost and side-effects to operations are minimal

Do not use one method alone but apply many methods together.

List as many solution ideas as possible and evaluate them.

Automotive Sector

DetectionEnsure that abnormalities caused by human error are detected and suitable corrective action is taken.

Detect taking parts

Make tools do not work

Operations in the previous process

Parts Boxes

Assembly Tool

Photo-electric Switch

Automotive Sector

Detection

Unnecessary motions

Positive

Omission of necessarymotions

Negative

Record precedent motions,and verify them at asubsequent point inmotion/time.

Sense shape/quality/stateof work objects at acertain point inmotion/time.

Restrict motions to letpersons to noticeabnormality.

Sub-PrinciplesAbnormalities to be Detected Examples

Misreading anoperation-order sheetand selectingthe wrongparts.

use photo-electric switchesattached to the parts boxes tosense which parts the workerhas picked up and compare theresults with each other or withpre-process operation contents,and automatically suspendoperation of the assembly tool ifthere is any disagreement.



Change the shapes of the partsso that the wrong parts cannotbe fitted to the sub-assemblyproduct.


Sensing the shape of theproduct on its way to the nextprocess, comparing the resultswith the standard and stoppingthe production line if there isany disagreement.

Det

ectio

n

Abnormity inmotion ofpersons orobjects.

Abnormality in results of motions suchas shape/quantity/state of objects.

Abn

orm

ality

in M

otio

n

Abnormality in Results

Record and VerifyMotion and Indicate

Abnormality

Restrict Motions

Verify Results andIndicate Abnormality

Automotive Sector

Detection

Late detection means large correction

costs.

Establish detection

techniques.

Hardware has an

important role.

Prevent hardware

failure.

Errors are not prevented.

Apply Prevention of Occurrence solutions

at the same time.

Automotive Sector

MitigationMitigate the effects of error by incorporating functional redundancies or using shock-absorbing materials

Foreman Worker

MainWorkshopSwitch

Switch of the Equipment

Automotive Sector

Mitigation

Sub-principlesEffects to be Mitigated

Malfunctions in operations causelosses.

Have a safety factor, or makesame functions parallel.

Incorporate shock-absorbingmaterial/equipment.

Make unsafe conditionsnot produce losses.

Examples


Burning out themotor of aproductionmachine byforgetting toswitch off itspower supply.

Make it the worker's job tooperate the switch on themachine itself and theforeman's job to operatethe main workshop switch.

Burning out themotor of aproductionmachine byforgetting toswitch off itspower supply.

Fit the machine with a fusewhich cuts off the powersupply when the motortemperature reaches acertain level.

Knockingproducts againstpoles of shelveswhen puttingthem on theshelves.

Cover the posts withshock-absorbingmaterials.

Miti

gatio

n

Unsafe State

Loss

Errors cause malfunctions inoperations subsequently.

Malfunction-malfunctionChain

Malfunction-unsafe

state-lossChain

Redundancy

Failsafe

Protector

Automotive Sector

Mitigation

It is important to prevent

undesired effects.

Focus on the chain of effects which leads to the undesired

effects

Occurrence of error

is not recorded.

Apply Detection solutions

at the same time.

Automotive Sector

Error Proofing Principles

ErrorProofing

Preventionof

Occurrence

Minimizationof Effects

Elimination Task Elimination

Risk Elimination

Automation

Support System

Replacement

Simplification

Distinction

Adjustment

Facilitation

Detection Record & Verify Motion

Restrict Motions

Verify Results

Mitigation Redundancy

Failsafe

Protector

Automotive Sector

Three Phase Approach

Step I: Identifying improvement opportunities

Step II: Generating solutions

Step III: Evaluating and selecting solutions

Automotive Sector

Human Error Prevention Check listBWT -Sr.No/Year -Date - CFT - Defect -

Effectivness

Cost Implimentation

SPN

Can we eliminate the error-prone process?

Can we eliminate harmful objects?

Can we automate the process?

Can we provide supporting tools like checklists/gages/samples?Can we simplify changes/differences in the operations? (standardization, code matching, etc)Can we distinct changes/differences in the operations? (color coding, unique shape, etc.)Can We adjust the properties of the operations which suits human beings?Can we record the motion of the earlier operation and verify it before starting the next operationCan we restrict the motion in such way that it will notice the abnormility?Can we verify the results before starting the next operation ?(sensing shape/state/quality of work)Can we make function parelle(Redundant)?(Additional Control)Can we incorporate some shock absorbing materail/equipment?(Like Fuse)Can we make unsafe conditions more safer so as to not to produce the defects?(Protection)

Solution ImplimentationSr.No Resp Date Status

HUMAN ERROR PREVENTION CHECK LIST Rev - 00

Defect Rate before -

Defect rate after 3 weeks of solution -

SPN

Mitigation

Principles Question to be asked to the process Solution

Facilitatation

Detection

Elimination

Replacement

Actions

Why Why Why Why Why

Automotive Sector

Step III: SPN

Effectiveness: 1(Ineffective) to 3 (Very Effective) Cost: 1(High) to 3(Low) Implementation: 1(Difficult) to 3(Easy)

Solution Priority Number =Effectiveness X Cost X Implementation

Automotive Sector

SPN: Effectiveness Scoring

Score Definition

3 Very Effective: Probability of the error can be eliminated, or chance of detection can be perfectly improved.

2 Effective: Probability of the error can be reduced; however, it is still high. Chance of detection can be improved; however, it is still not enough.

1 Ineffective: Probability of the error can not be reduced, and chance of detection can not be improved.

Higher is better

Automotive Sector

SPN: Cost Scoring

Score Definition

3Low: Within daily operation budget. No specific budget is needed.

2Moderate: Department level budget isneeded.

1High: Company level budget isneeded.

Higher is better

Automotive Sector

SPN: Implementation Scoring

Score Definition

3Easy: No training is needed.No resistance is expected.

2Moderate: Training course is needed.Some resistance is expected.

1Difficult: Culture change is needed.Strong resistance is expected.Higher is

better

Automotive Sector

Question and Answer

Automotive Sector

5 ) VSM to reduce thru put time (on major product line)

Compare : before/after

This indicator measures line balance Expressed in ‘Thru put time’ This indicator should decrease over time. There are three initiatives which will reduce it

– KAIZEN– SMED– Line balancing actions

Automotive Sector

6) Productivity

This is measured as the ratio between the no. of accepted units made and the total no. of employees hours associated with the mfg. of these units.

Measure production volume in : Kg/person/hour It includes Direct, Indirect & Admin staff. This measure should increase over time.

Automotive Sector

7) INVENTORY TURNS RATIO

This measures how frequently the stock of raw material, work in process and finished goods are turned over in relation to the material cost in the Sales revenue.

Inventory levels are the key indicators of the ‘Leanness’ of the process and are directly related to the simplicity of production flows.

This increase over time.

Automotive Sector

7) INVENTORY TURNS RATIO… contd.

Unit Company should define its method of calculation of material cost, inventory compilation.

Unit Company should take a stock of the inventory

of RM, WIP, FG on the last day of the month and calculate the ratio.

Include all materials owned, at subcontractors, warehouse etc.

Automotive Sector

7) INVENTORY TURNS RATIO… contd.

Material cost of sales in a particular monthITR = ---------------------------------------------------------------- x 12

Inventory of RM + WIP + FG as on date

Automotive Sector

8) DELIVERY SCHEDULE ACHIEVEMENT

This measures how well a supplier’s dispatches match the planned delivery requirement of the customers.

Unit of this measure is % This should increase over time.

Total no. of dispatches achieved = ------------------------------------------- x 100

Total no. of dispatches planned

USE EXCEL SHEET AS EXPLAINED.

Automotive Sector

9) OVERALL EQUIPMENT EFFECTIVENESS (OEE)

This is a composite measure of the Equipment Performance.

This includes Availability Performance, Operational Performance & Quality performance of the equipment.

This should increase with time. Unit of measure is %

Automotive Sector73

9) O E E …..(contd)

OEE (Overall Equipment Effectiveness) =

Availability Rating x Quality Rating x Performance Rating

Availability Rating = Total Time - Loss Time (i.e. equipment downtime )

Total Available Time

Performance Rating = Theo. Cycle Time X Parts Actually Produced Operating Available Time

Quality Rating = No. of OK Parts Total parts produced.

Automotive Sector

10) SAFETY

There are two measures for safety Accident Frequency Rate – No. of accidents occurring in

the Co. due to unsafe practices/ conditions.– Prepare monthly chart for it. It should reduce over

time. No. of Accidents= ----------------------- X 1 million Total man hours

Man hours lost Accident Severity Rate = ----------------------------- x 1 million Total man hours avl

Automotive Sector

11)5 S

These are for improving the Operations The 5 S Audit cum Score sheet is used to measure

5 S score of the Unit Co. Unit for this indicator is % It should increase over time. It is improved through

• 5 S audit• WPP (Worst Point Photography)• FPP (Fixed Point Photography)

Automotive Sector

12) ENERGY COST

This indicator is a measure of energy input cost reduction in the working of the whole organization.

Unit is Rs. Or as % of sales/production Energy savings may be Electrical energy, Fuel

savings etc. It should decrease over time. Co. should make a monthly trend graph

Automotive Sector

Question –Answer Session….

Thank You!

Documents

SUPPLIER CLUSTER for F 14