Copyright © 2014 Rockwell Automation, Inc. All Rights Reserved.

PUBLIC INFORMATION

Transforming Indian Automotive Manufacturing:

Connected, Smart, Flexible

Ajay Khanna

Vice President IT

Indian Automotive Industry- Overview

• India is the seventh largest vehicle manufacturer, second largest two wheeler manufacturer and the fifth largest commercial vehicle manufacturer in the world

• The Auto Industry of India has been recording tremendous growth over the years and has emerged as a major contributor to India’s GDP. Automotive Industry currently accounts for almost 7% of our GDP and employing about 19 million people both directly and indirectly.

• Six fold increase in industry turnover and automotive exports growing by twenty times in last 10 years

• Auto component industry to reach turnover of USD 66.4 billion by 2016 and USD 113 billion by 2020

• Automotive Industry has lot of scope. India in 2009 was 157 in terms of vehicles per 1000 people

Automotive Clusters in India

Automotive Sector Growth

Indian Automotive Industry

Supply Chain Complexities

Technology and Innovation

“If I had asked people what they wanted, they would have said faster horses.” - Henry Ford

Operational Excellence Defined

The basic idea of “Operational Excellence” is based on the principle of parallel implementation of Lean and Six Sigma. Efficient and stable processes should not be analyzed independently from each other, they require each other

Driving Operational Excellence

• Reduction of defects per Vehicle

• Reduce schedule changes

• Sequence Optimization

• Reduce Line Stoppages

• Optimize buffers

• Supply Chain Management

Getting more from the existing plant at lower cost

COST SUBTRACTION PRINCIPLE

• 1. COST + PROFIT = PRICE • (STATUS QUO)

• 2. PRICE - COST = PROFIT • (SUBTRACTION PRINCIPLE 1)

• 3. PRICE - PROFIT = COST • (SUBTRACTION PRINCIPLE 2)

Automotive Industry Drivers

• Government regulations related to restrictions based on age of the vehicle and other environmental safety issues.

• Growing freight capacity and increase in exports from remote areas enabling the producers/manufacturers to move their goods to ports

• Structural shift to Hub & Spoke model, • Improved road infrastructure • Equipment, process, and network safety • Data sharing between brand owners, tier suppliers & machine

builders • Coordination of multiple vendors and thousands of data points • Modernisation of the trucking industry

Automotive Industry Challenges • Globalisation

– Synchronising Global Operations – „Higher velocity of business through Supply chain optimisation

• ‡Increasing consolidation across industries driven by – „Competitive cost pressures – „High growth in emerging economies – „Greater Partnerships and Alliances

• Supply Chain & Logistics – Timely inbound material supply – Limited organised sector

• ‡Greater Product & Service Complexity – „Greater Choices with Customers – „Faster information dissemination through direct consumer-consumer interaction (Web-2)

• Rising Fuel Costs – Commercial vehicles sustainability is critically dependent on this.

• Human Resources – Skilled manpower availability – Improvement seen with enhanced vocational institutions across country

• ‡Industry Standards – „B2B Collaboration, RFID, Open Standards

About VE Commercial Vehicles

VECV Vision

VECV Values in Action

Focus Areas

Business Areas

Our Presence in India

Range of Products

Legacy Products

Pro Series Recent Launch

Worldwide Spread

Trucks Manufacturing Facility

VE Powertrain

Requirements from MES System

Quality assurance of the product with In-process verifications and system integrated quality checks.

Product Genealogy and tracking capabilities which can be extended all the way to aftermarket systems. Have key tracking and validation capabilities in warranty system.

Flexible & scalable system to be able to handle high degree of product variants and growth in the volumes. System should be capable of handling the Build–to-Order scenario in the factory

Accurate product preparation and manufacturing preparation capabilities to ensure real time & effective analysis of inventory, BOM, consumption data and key business metrics.

World class Integrated MES system to support manufacturing function to be able to deliver prescribed product quality and volumes every single time.

MES system was expected to be the heart of the manufacturing system, it shall help automate machining and assembly operations along with associated activities. It was expected to have tight integration with ERP system.

Architecture and Interfaces

Functional Overview

MES system was expected to bring flexibility and scalability in

• Production Planning, Order Management & Sequencing

• Integration with PLC for machine level communication

• Machining instructions for variable machining

• AOS display at each specific station

• Quality management at each critical station

• Line side supply management

• Genealogy and Tracking

Process Flow – VE PowerTrain OPN010 OPN020 OPN030 OPN040 OPN050 OPN060 OPN070 OPN080 OPN090 OPN100 OPN110 OPN130 OPN150 OPN160 OPN170 OPN180

OPN370 OPN350 OPN340 OPN320 OPN310 OPN300 OPN280 OPN270 OPN260 OPN250 OPN240 OPN230 OPN220 OPN210 OPN200 OPN190

MACHINING - BLOCK LINE

OPN290 OPN270 OPN260 OPN250 OPN230 OPN220 OPN210 OPN200 OPN190 OPN180 OPN170

OPN010 OPN020 OPN030 OPN040 OPN050 OPN060 OPN070 OPN080 OPN090 OPN110 OPN150 OPN160

MACHINING - HEAD LINE

C0500 C0600 C0700 C0800 C0900_1 C0900_2

C0100 C0200 C0300 C0350 C0400 TT03 C1100_1 C1100_2 C1200 RP04

BASIC ASSEMBLY - HEAD LINE

G0100 G0200 G0300 G0400 G0500 G0550 G0600 G0650 G0700 G0800 G0850 TT02 G1000 G1100 G1200 G1500 G1700

BASIC ASSEMBLY - LONG BLOCK LINE

K0400

K0100 K0200 K0300

PISTON LINE

G1750 TT01

TT02

G2800

G2900

TT04 G3300 G3200 G3100

TG LINE

S1800 S1700 S1600 S1500 S1400 S1300 S1200 S1100 S1000 S0900 S0800 S0700 S0600 S0500 S0400 S0300 S0200 S0100 S0050

FINAL ASSEMBLY

TEST BED - 1 TEST BED - 2 TEST BED - 3

OIL FILLING

TEST AREA

LOAD MASK PAINT DEMASK FA-QID

PAINT AREA

ANDON – Machining Area

ANDON – Assembly Area

M T/O M

MAIN LINE

PISTON ASSY CYLINDER HEAD ASSY

Orders

BOM,

Material

Stock update

Order QA

status

MES Functions at VEPT

System Architecture

Order Management

Display list of orders received from SAP

Apply rules for arranging / sequencing orders

Manual shuffling of order sequence

Freezing & dispatching orders for execution

Provide customer priority

Hold orders from execution

Track status of each order

Production preparation

Station marking against FERT Manual & Automatic

copy for new FERT

AOS configuration Configurable steps Categories for each step Solution to handle

Make to order Automatic configuration

for new FERT

Station type configuration Manual, Auto, Semi-Auto

Interlocks with order start till completion

Alerts to users for pending preparation

AOS for Manual stations

Work Instructions for Operator guidance

Send OP codes to equipment's

Receive data & ACK from equipment's

Category for each Work instruction step

Capture actual cycle time & down time

Quality defects at each station

Error proof & data collection at each step

Production Monitoring

Quality Management Quality Inspection Display

Defect part identification

Quality Defect Capturing

Corrective Action

Take out & Rework

First Time Through

Product Audit

CAPA for analysis

Key values:

• Historical log of critical events

• Regulatory compliance

• Serial no wise Quality Genealogy

Operations Intelligence

Value Proposition and Utilization

• Better visibility & fact based decision making

• Steady improvement in quality at plant level

• Elimination of most Manual Data Collection & Analysis Activities

• Improvement in Schedule Adherence

• Better Inventory Management and steady line side material flow

• Enhanced compliance of customer specifications and delivery requirements

• Elimination of non-value add activities, reduced paperwork at shop floor

• Accelerate trace analysis, root cause diagnosis and issue resolution

Next steps looking into the future

• Enhance use of Analytics for operations improvement and productivity enhancement

• Define and track operational KPI and monitor through MES

• Optimize and improve solution performance

• Scale up for new product introduction

• Extend MES to other manufacturing operations

Summary

• Industry is maturing over a period of time • Complexity in Manufacturing is increasing • Growing need for standards based solutions • Need for automation in India for manufacturing sector is becoming

essential • MES implementation has provided us a lot of learning • New thoughts to improve operations are being considered. • Each day spent at the shop floor is providing new insights • Awareness amongst People about Processes and systems along

with adherence is key for successful implementation and sustenance.

• Flexibility is a necessity considering business needs and challenges

“Excellence is in the details. Give attention to the details and excellence will come.” – Perry Paxton

Copyright © 2014 Rockwell Automation, Inc. All Rights Reserved.

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