a successful case study presentation on visionary sme programme by harita seating systems limited

17th Jul 2013 Harita Seating Systems Ltd. 1

Harita Seating Systems

Our VSME journey


Harita Seating Systems

� Established in 1988 (Part of TVS Group)

� Sales : Rs 2700 Mn in FY13

� Facilities : 5 Plants & 1 R&D center

� Capacity : 1 million seats per annum

� Employees : 650

� Certification :

– ISO/TS 16949, ISO 14001 & OHSAS 18001

Jamshedpur,

Jharkhand

Nalagarh,

Himachal

Ranjangaon,

Maharashtra

Hosur,

Tamil Nadu

1320

1750

2260

2900

2700

1000

1750

2500

3250

FY09 FY10 FY11 FY12 FY13

Pantnagar,

Uttarakhand


Off-road Vehicle Segment

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Sta

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ard

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De

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Tractor Segment

Commercial Vehicle Segment

Seating Systems for …..

Bus Passenger Segment


Driver Seats

Off-roadCV

Tractors

Passenger Seats

Harita’s Customer profile

Bus - OEM Bus - STU

C E

Market share Domestic55 % 45 % 12 %50 %


Fluctuating Customer Demand

Inadequate Supply Chain Responsiveness

Increasing Customer Expectations

Need & Uniqueness of Harita’s VSME Journey …

Embarked VSME Journey without the involvement of OEMs


Transform Organisation

Win Win Relationship

Do, Demonstrate & Support

Customers

Preferred Supplier

community

VSME Journey …


Internal Supplier

VSME Supply Chain structure

Welding

Powder coating

Tractor

Seat AssemblyWare House

Child part & Proprietary

External Supplier

CustomerTAFE – DBRTAFE - MDU

Manufacturer

Model Line

Tier 0 (T0)OEM Prodn. line

Upholstery

Fabrication

Contribution to sales – 15%

Low efficiency and higher OT

Single source to M/s. TAFE,since 1988 and JIT supplies


• Delivery performance to TAFE ALL PLANTS

has improved from 18% in May12 to 85% in 1st week of May

• Delivery performance of HSSL to TAFE DBR plant has improved from 60% to 100% during H2 of 2012-13

• TAFE vehicle waiting in Harita has decreased from 4times/month to 1time/month during

FY13

Tier relationship evaluation

Ta

ng

ible

(Me

asu

rab

le)

In-t

an

gib

le

(Wh

ich

ca

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ot b

e m

ea

su

red

bu

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lt)

Customer & Harita Harita & Supplier

• In feb13, 9 months after the start of VSME

with Tractor cell as model T1, TAFE, the main customer of model T1 line recognized Harita as the best supplier in the overall

performance category in the vendor conference at Chennai

• In Dec 2012, Mr.Kumaradevan of TAFE mentioned at Chennai Airport that he had

positive feedback from his team on Harita’s ability to respond to their requirements based on the VSME exercise

• On 29/4/13, the buyer at TAFE MDU thanked Harita by email for excellent support given in

2012-13

• No of OK DAYS from VSME suppliers has

improved from 60% in Sep12 to 90% in Apr13

• Quality of BOR parts from VSME T2s has

improved from 4000ppm to less than 500ppm from the month of March

• The productivity index for all T2s has gone up from 41% to upto 410% during FY13

• During the meeting with T2 CEOs after first CEO

review, the CEO of LR INDUSTRIES thanked Harita for improved trust levels between Harita and the T2s

• 2 out of 4 T2 CEOs expressed their improved confidence level to have open discussions with

Harita in the T2 community learning held during Q2 2012-13

• On 11th & 12th April 13, 3 CEOs of T2 has expressed their pleasure to go through the

systematic, methodical, time bound process to improve their competitiveness

Customer Recognition

Annual Goals & Achievements Win – Win Supply Chain relation

Annual VSME Journey Results

In Dec 2012, Mr.Kumaradevan of TAFE mentioned at

Chennai Airport that he had positive feedback from his

team on Harita’s ability to respond to their requirements

based on the VSME exercise

On 11th & 12th April 13, 3 CEOs of T2 has expressed

their pleasure to go through the Systematic, methodical,

time bound process to improve their competitiveness


Delivery Performance


Line Efficiency Productivity

18.00

81.00

May'12 May'13

59.00

74.70

May'12 May'13

1.99

2.95

May'12 May'13

350 %

26.6 % 48.2 %


Top management & Employee Involvement

Promotional Jackets provided for Employees Union Employees addressed on VSME progress

Directors & Group CEO debriefed Customer debriefed


VSME Results of our suppliers

SuppliersProductivity

Improvement

Space

Saving

Matl. travel

Distance

Reduction

JIT Auto Comp 441 % 71% 78%Mahaalakshmi Enterprises 70% 8.5% 42%

Sri Sudharshan Industries 119% 62.5% 79%

L R Industries 25% 13% 95%

Products Manufacturer of Sheet metal pressed

and Fabricated assemblies

Major Customers M/s. Harita Seating Systems Limited

M/s. Ashok Leyland Limited

M/s. BEML Limited

Turnover Rs. 50 Million / annum


CEO required GuidanceDesperate for Survival(Resource constraint)

Potential for Development

(Good Attitude)

Why JIT Auto?

Harita decided to re-induct JIT auto and support during FY13

30.0 32.5

24.0

12.5

FY 09 FY 10 FY 11 FY 12 FY 13

??

Performance

MeasureFY 12

On time delivery % 21 %

Quality in PPM 2805

Procurement in Rs. Lacs

17th Jul 2013 JIT Auto Comp 13

Tier relationship

Non competitive Poor Performance

Relation with customers

30.0 32.5 24.0

12.5

FY 09 FY 10 FY 11 FY 12

Harita Total

3,000 5,000

20,000 20,000

FY 09 FY 10 FY 11 FY 12

Additional

Shed

rented

Sales in Rs. Mn

Build Area in SqFt

New

premises

constructed

CEO Estimated his sales to drop below 10 million by end of FY 12


Order – Instruct - Check

Harita’s approach to VSME at Supplier end

Cluster Community

VSME Methodology

Flow Based Improvement

Process Based Improvemennt

Quality System Support

Harita along with 4

suppliers registered

during May’12


Do – Demonstrate – Support by Harita

Demonstrate (Aug’12)

DO (Jun’12)

3S Map

Implementation @ Harita

Support (Aug & Sep’12)

Demonstration at Harita

� All project members incl. T1 CEO

� Debrief on 3S Map learning

� Demonstration on model line

Support at JIT Auto

� T1 PH & FHs supporting T2

� Observation incl. periphery

� Support in 3S Map preparation,

Improvements identification

DDS methodology was followed by Harita through out the journey for all Suppliers

DDS => 3S Map, V Map1 & 3 & Heijunka


Community activity between Suppliers

LR Industries participated in JIT Auto V Map 3 Impl. And Vice versa

Resource SharingPoints of View

Unconventional Angle

Cross Learning

Sharing Best Practices

LR Team @ JIT Auto


Illustration of Material flow before VSME implementation

� Material Flow & Inventory mapping

Space utilized for production

of model line parts

Space utilized for production

of model line parts


Illustration of Material flow after V Map 3 Implementation


Snap shot of achievements through VSME Journey

� Before & After – Assembly Carrier Plate welding line

– Space for model line parts production reduced by 71 %

– Material flow distance reduced by 78 %


Delivery Performance


Line Efficiency Productivity

23

89

May'12 May'13

73.00 78.00

Dec'12 May'13

2.7

14.7

May'12 May'13

287 %

16%

441 %


Results with Harita

23

89

May'12 May'13

Performance

Business Trend Demonstrator for next year diffusion

287 %

2,805

889

May'12 May'13

30.0 32.5

24.0

12.5

34.5

FY 09 FY 10 FY 11 FY 12 FY 13

68 %

Delivery Performance % Quality Performance (ppm)

Sales in Rs. Lacs


F13 VSME

Community

F14 Leap

Community

F15 Leap

Community

LRI ME

JIT

JGF

SACLHFRL

QT

CC

SIPL

Zigma

Supram

1

6

5

4

32

7

8

9

10

1112131415

16

17

18

19

20

21

2223

24

We commit to continue our Journey to build community


We commit to continue our Journey to build community

Thank You

a successful case study presentation on visionary sme programme by harita seating systems limited

Business

harita seating systems

vsme results

vsme suppliers

vsme t2s

vsme exercise

tafe vehicle

kumaradevan of tafe

kumaradevanof tafe