analysis of customer requirement fulfillment process at hval

8/7/2019 Analysis of Customer Requirement Fulfillment Process at HVAL

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OperationsOperationsManagement AtManagement At

HVALHVAL

Arijit MitraArijit Mitra

Inderjit SinghInderjit SinghMridulMridul

SharmaSharma

Rahul RaiRahul Rai


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HVAL

Formed in March 2000

Manufacturing Axles & Axle parts for Medium & HeavyCommercial vehicles

B2B Entity

Capacity of over 3.6 lakh axles per annum.

&VAL in M HCV Indianndustr &VAL in M HCV Tata MotorsLtd

Meritor,Tongil,Steyr


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PRODUCTS OF HVAL

LIVE FRONT AXLE REAR AXLE

NORMAL FRONT AXLE


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. (S Aich AGM Planni

.AJamaiyar

( )COO.G Ahuja( )CFO

. .P KChoudhury

( .)DGM Engg

DHBUFABURABUPPCHR and BES. &Matl ADD&CQ CM

. . (A B Lall CEO HVAL and)HVTL

BUSINESSUNITS

Organizational Chart


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ROCESS PLANNING

TRATEGIC CAPACITY PLANNING

/ .PE RA TI ON S AG G P LA NN IN G

UPPLY NETWORK PLANNINGORECASTING AND DEMANDMANAGEMENT

MANUFACTURING SERVICESLOGISTICS

.ATL EQUIREMENTSPLANNING

RDERSCHEDULING

APACITYPLANNING

DISPATCHING

/H RECEIPTLANNING

AILY ORKFORCESCHEDULING

IDEAL PROCESS FLOW DIAGRAM


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ENTERPRISE PROCESS MODELENTERPRISE PROCESS MODEL


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HVAL PROCESS MANAGEMENTPYRAMID

VisionMissionore ValuestrategicDirectioneader System

S tr a t

e g ic L

e v el

I m pl e m

e n ta t i

o nL e v

e l

B u si n

e s sL e v

e l EVEL 1

EVEL 2

EVEL3

PM 9 Top level processesPM 9 Top level processes

+PM 40 sub processes

NPI

Infrastructure creation and maintenance

Finance

,Vendor mgmt material and logistics,HR Legal and Admin,Production QA and maintenance Customer support


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VALUE CREATION SYSTEM

SUPPORT SYSTEM

EMAND CREATIONCustomer requirement determination

DEMAND FULFILLMENTPRODUCT

DEVELOPMENTPROCESS

PRODUCTION AND

DELIVERY PROCESS

AFTER SALES AND

SUPPORT PROCESS

,Expectations StatutoryRequirements

uman Resource Mgmt Finance and budgetinga ci li ty an d E nv iro nm ent M gm t

LEA

DE

RSHIP

SYST

EM

. &Devbudgeting of.NPI prod Plan

&MonitoringExecution of

NPI Project

.Prod Design.and Dev

ProductionPlanning

Manufacturing

Maintenance

Vendor Management

. Warranty Mgmt

.Spare Parts Mgmt

Customer Complaint

.mgmt

1

23

6

5

9

d i liP N 5 P d i & D li


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Process No. 5: Production & DeliveryProcess No. 5: Production & DeliveryProcessProcess

SUB PROCESS NOSUB PROCESS NO SUB PROCESS NAMESUB PROCESS NAME OWNER DEPT.OWNER DEPT.

5-015-01 Production, Planning & SchedulingProduction, Planning & Scheduling PPCPPC

5-025-02 Produce aggregates and componentsProduce aggregates and components Central Quality and MaintenanceCentral Quality and Maintenance

5-035-03 Maintenance of machines and equipmentMaintenance of machines and equipment Central Quality and MaintenanceCentral Quality and Maintenance

5-045-04 Selection and development of VendorsSelection and development of Vendors Materials & ADDMaterials & ADD

5-055-05 Part Development ProcessPart Development Process Materials & ADDMaterials & ADD

5-065-06 Procurement processProcurement process Materials & ADDMaterials & ADD

5-075-07 Vendor Performance Monitoring & Improvement ProcessVendor Performance Monitoring & Improvement Process Materials & ADDMaterials & ADD

5-085-08 Vendor Rationalization ProcessVendor Rationalization Process Materials & ADDMaterials & ADD

5-095-09 Performance ImprovementPerformance Improvement Materials & ADDMaterials & ADD

5-105-10 Process Design & ImprovementProcess Design & Improvement EngineeringEngineering

5-115-11 Manage SafetyManage Safety COOCOO


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ROCESS PLANNING

TRATEGIC CAPACITY PLANNING

/ .PE RA TI ON S AG G P LA NN IN G

UPPLY NETWORK PLANNINGORECASTING AND DEMANDMANAGEMENT

MANUFACTURING SERVICESLOGISTICS

.ATL EQUIREMENTSPLANNING

RDERSCHEDULING

APACITYPLANNING

DISPATCHING

/H RECEIPTLANNING

AILY ORKFORCESCHEDULING

IDEAL PROCESS FLOW DIAGRAM WITH EPM

-01

- -04 to 5 09

-01

-10

-01-01

&aken care of by HR B


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HUMAN RESOURCE( )PSD

ENGINEERINGRESEARCH

CENTRE

NEW PRODUCTINTRODUCTION

PRODUCTION&PLANNING

CONTROL

AUTODEVELOPMENT

DEPARTMENT

MATERIALS

DHBURABUFABU

SPIG

MASTERPRODUCTION

SCHEDULE

MANPOWER

MRPINBOUNDLOGISTIC

DISPATCHepartmentepartmentInteractionsnteractions EW PRODUCTEW PRODUCT EGULAREGULARPRODUCTRODUCT


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PRODUCTION PLANNINGCONTROL


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PPC Structure

( . )AGM R P Singh

MI M2 M3

SUPERVISIORS

E Grades Temporary Grade

- ( )TM2 TM3 Manager Grade


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,ay plan from TML PPC Jamshedpur& ( . .)Confirmation from ADD Material dept and Production Dept 9 to 10 a m ( All aggregate PPC meeting at TML to freeze schedule for next day This is c

( : . )Production meeting at HVAL 3 30 p m to freeze the productioProductionDispatch for all customer

- (day plan process For only)amshedpur Plant


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( ) -from TML Vehicle level on 26 27th of previous month (Order transferred at axle level Two sub part DOMESTI

,Circulation of the requirement to ADD Material and CO( - )etting information from Material for deciding the priority Confirmation of 4 5 Days( ) ( , , )nt final to every department HR Quality Production etc

(onthly Process Common to all)ustomers

( - )Orders Received at the Vehicle Level 18 19 Models


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Demand Forecasting

Method of forecasting: Done by Tata Motors. Mainly experience from the past sales and datagiven by Sales and Marketing

Error in forecasting: Cost is born by Tata Motors, so they take care of. Demand is Dependentin nature.

Demand sources Tata motors (Jamshedpur, Lucknow and Pune)

Spare parts,

Vehicle factory Jabalpur (Defense),

Telcon

Dutch Lanka Trailer.

Key Points Bullwhip effect is not considerable as less number of parties are involved in the supply chain

Demand of vehicle is cyclical. It increases in Jan to March and decreases from April to June

Cyclical component: model based. Overall it is cyclic

HVAL is answerable to Board if they are not able to meet the demand.

Inventory Audit is done on daily basis.

Lucknow-Bucket Plan (May be for a week)

Spare parts (Monthly Plan)

Seasonality factors: Yes, some bonus in some season

Random variation: Taken care at the time of release


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Planning strategy: Determined byPSD, Dominantly chase

Backordering cost: Indirect cost isthere. HVAL is answerable to board.

Inventory control: PPC isresponsible for the FG inventory.

Inventory calculation: Manualaudit and SAP.

D A ILY P LA N


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D A ILY P LA N


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MONTHLY PLAN


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AUTO DEVELOPMENTDEPARTMENT


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( )List given by NPI BOMalong with design

documents

Categorization from( , ,BOM given by NPI A B C

-Requirement sent to 3 4suppliers with documents

and quotation asked

,Quotation if obtainedsent to Price panel for

.estimation of cost acc ToZero Based Costing

Negotiation ofsupplier with price

panel

OK?

NO

YES

PO released

,Sample with FMEAProcess flow diagram

.etc from suppliers

QA checking of sample

with all documentsOK?

NO

YES

Again sample has tobe given by supplier

PPAP lotdemanded

Inspectionby SQIG

OK?YES

Rejected

Ownershiptransferred to

.materials deptfor regular

supply


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Supplier Selection basis:

Quality (both for new and regular part)(% of Rejection)

Cost (both for new and regular part)

Capability (both for new and regular part)

Delivery time (for regular part)

Requirement of documents from suppliers

Inspection Check

PFP

Control Plan

Failure Mode Effect

Metallurgical grain flow report

Commitment Inventory Category

A- Inventory up to 10 days

B- Not expensive, inventory up to month

C- Low value items, up to 3 months

Key Points


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MATERIALS DEPARTMENT


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ERC

NPI

PPC

Demandschedule

NEW

REGULAR

ADD

Aggregate

Part

Source,Yearly

&monthlyDaily schedule

for supply

Follow up withsuppliers

Supply tostore

OK?

NSPECTIONY SPIG( )A

NO

YESSupply toProduction line


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Inventory control

11 days inventory is being kept by Material dept. Value based Inventorysystem.

Basis of the 11 days:Geographic location

Cost of part

Lead time Shelf life of the material

Order quantity/volume

Key Points Generally 6 vendors are kept for each component

5-10% extra order

For local vendor, JIT concept is applicable.

MRP Structure: SAP is used

Placing order: Price panel and Materials dept. jointly take decision


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PRODUCTIVITY SERVICEDEPARTMENT


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PROJECT

NEW PROJECT REGULARPROJECT

PROJECTED VOL OF PRODUCTION( ) WITH VARIATION

MANPOWER CALCULATED AS PER(STANDARD FOR THE VARIATION

)ALSO

ARRANGEMENT OF MANPOWER

PLANNING

MANPOWERREQUIREMENT

ASSESSMENT BYPSD

ARRANGEMENT OF MANPOWER

Demand fromproduction

OK

YES

NO


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Recruitment: From employment exchangesand local diploma colleges (Students from ITI,ITDR)

Operators pay decision:

Productivity Index of the company

Quality Index of the company

Safety Index of the company

EBIT of the company

Calculation: Payment = Fixed payment + Variable payment

Variable payment = f (Productivity Index of thecompany, Quality Index of the company,Safety Index of the company and EBIT of the

company).


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SCORECARD ASSESSMENT

DIVISIONAL HEADFEEDBACK

,PSD HR AND DIVISION HEADREVIEW

FINAL GRADING


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Key Activities:

Audit for document adherence (Mainly for NPI, ERC andQuality Department) as per the guidelines of TataBusiness Excellence model

Supplier quality Assurance (at the supplier end)

Quality inspection before sending to assembly line

Pre-dispatch inspection of the finished product

Statistical process control:

DFMEA and PFMEA Flow chart

Run Chart

Pareto chart

Fish Bone diagram

Check-sheet Opportunity Flow diagram

Process control chart

Quality at supplier end:

Zig and fixture quality (critical dimensions checking)

Process capability of supplier


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Quality Assurancedepartment


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An example of Quality ControlProcess

Failure

Fish Bone diagram

DFMEA/PFMEA

Root cause found (if it is criticaldimension related)

Process control chart used tostandardize the design/process


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New Product Introduction


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Different types of project Handled byNPI

/Existing Regular

Mix and Match

ProductImprovement

Green Field

ow ost High


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Maintenance

dopted Nakajima s TPM model mplementation at the PlantLevel uarter Kaizen program PM Manual EE measurement


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Operational Strategy


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Technology Management

Outsourced to Tata Technologies Limited.

Critical Technologies are as follows

Digital manufacturing technology (Delmia) Pro-E for computer aided Design Product lifecycle management software System Application Product (SAP) Software for Design and Analysis (Gear Engineer Pro, MS

Nastran, LS Diana etc.)

analysis of customer requirement fulfillment process at hval

Documents