a successful case study presentation on visionary sme programme by harita seating systems limited
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17th Jul 2013 Harita Seating Systems Ltd. 1
Harita Seating Systems
Our VSME journey
17th Jul 2013 Harita Seating Systems Ltd. 2
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
17th Jul 2013 Harita Seating Systems Ltd. 3
Off-road Vehicle Segment
Cit
y B
us
seg
me
nt
Sta
nd
ard
Se
gm
en
t
De
luxe
se
gm
en
t
Se
mi
De
luxe
Se
gm
en
t
Tractor Segment
Commercial Vehicle Segment
Seating Systems for …..
Bus Passenger Segment
17th Jul 2013 Harita Seating Systems Ltd. 4
Driver Seats
Off-roadCV
Tractors
Passenger Seats
Harita’s Customer profile
Bus - OEM Bus - STU
C E
Market share Domestic55 % 45 % 12 %50 %
17th Jul 2013 Harita Seating Systems Ltd. 5
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
17th Jul 2013 Harita Seating Systems Ltd. 6
Transform Organisation
Win Win Relationship
Do, Demonstrate & Support
Customers
Preferred Supplier
community
VSME Journey …
17th Jul 2013 Harita Seating Systems Ltd. 7
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
17th Jul 2013 Harita Seating Systems Ltd. 8
• 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
nn
ot b
e m
ea
su
red
bu
t fe
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
17th Jul 2013 Harita Seating Systems Ltd. 9
Delivery Performance
Annual VSME Journey Results
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 %
17th Jul 2013 Harita Seating Systems Ltd. 10
Top management & Employee Involvement
Promotional Jackets provided for Employees Union Employees addressed on VSME progress
Directors & Group CEO debriefed Customer debriefed
17th Jul 2013 Harita Seating Systems Ltd. 11
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
17th Jul 2013 Harita Seating Systems Ltd. 12
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
17th Jul 2013 Harita Seating Systems Ltd. 14
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
17th Jul 2013 Harita Seating Systems Ltd. 15
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
17th Jul 2013 Harita Seating Systems Ltd. 16
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
17th Jul 2013 JIT Auto Comp 17
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
17th Jul 2013 JIT Auto Comp 18
Illustration of Material flow after V Map 3 Implementation
17th Jul 2013 JIT Auto Comp 19
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 %
17th Jul 2013 JIT Auto Comp 20
Delivery Performance
Annual VSME Journey Results
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 %
17th Jul 2013 Harita Seating Systems Ltd. 21
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
17th Jul 2013 Harita Seating Systems Ltd. 22
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
17th Jul 2013 Harita Seating Systems Ltd. 23
We commit to continue our Journey to build community
Thank You
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