harinder jeet singh principal counselor & head

22 June 2011 1© Confederation of Indian Industry

CII-AVANTHA Centre for Competitiveness for SMEs

Harinder Jeet Singh

Principal Counselor & Head

“Building Quality Supply Base”



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India - GDP growth % vs. Manufacturing contribution

GDP growth (annual %) Manufacturing, value added (% of GDP)

India : GDP Growth and Contribution of Manufacturing sector

Manufacturing sector contribution to GDP has always been consistent

Source : World Bank




India’s Manufacturing Competitiveness

Indian Manufacturing positioned for a higher growth rate

India as a manufacturing hub

Proven Product Development Capabilities

Stable Economic Policies

Large and growing domestic demand

Availability of manpower

Proximity to Markets

High Quality Standards

Competitive Manufacturing Cost

Export Potential




Some interesting facts about Indian MSMEs

• 8% contribution towards India’s GDP

• Account for 45% of manufacturing output

• More than 26 million spread over the country

• Producing 6000+ products

• Employment to 59 million+ people

• Share 40% to national exports currently

• Growing at 35% over the last 2 years

Unleash the hidden potentialSource : MSME Annual Report 2009-10

(Supply Base)




?

Improve Productivity

?

Improve Quality ?

Maximize Production

?

Technology up?

Energy saving?

Mfg Cost reduction?

Revenue generation?

What is Quality Supply Base all about ? “Building Quality Supply Base”



?

Improve Productivity

?

Improve Quality ?

Maximize Production

?

Technology up?

Energy saving?

Mfg Cost reduction?

Revenue generation?

What is Quality Supply Base all about ?

PEOPLE

and SYSTEMS

PEOPLE

and SYSTEMS

Too many parameters to work upon ?




Standardized work

Use Techniques & Technology in process

improvements

Prevention systems

Feedback and control systems

Customer supplier relation building

Element # 1

Systems robustness – the first step




Standardization as Base

• Start with work standards - First– Need based updation of standards– Work instructions in local languages– Visual standards

• Reaching the mass is the key

• Focus on standardization while building capacities




A Work Standard Example

Explanatory Photographs

Explains the quality, safety & standard related points

Explains the operation sequence




Standardized work


improvements

Prevention systems



Element # 1




Element # 1

- Use Techniques & Technology in process improvements

- 5S, 3M, SMED- Quality Circle tools- Kaizen- Value Stream Mapping (VSM)- Failure modes and effects analysis (FMEA)

- Special focus on Low cost automations




Standardized work


improvements

Prevention systems



Element # 1




Prevention systems

– Extracting the advantage of technology & automations

– Shift from Time based to Cycle Based maintenance

– Process Maintenance

Element # 1




Standardized work


improvements

Prevention systems



Element # 1





Traceability

Visual control – Seeing is believing

IT enabled Quality & production control systems

Element # 1




Visual control in material identificationVisual control in material identification


Visual control – “Seeing is believing”Visual control – “Seeing is believing”



Visual Communication of an Abnormality




• Safe and comfortable

• Engagement of People

• Imbibe Daily Work Management

Element # 2

Bringing the Ownership




• Safe and comfortable work environment

• Engagement of People

• Imbibe Daily Work Management

Element # 2




Safe and comfortable work environment

Spot coolersSpot coolers

Heat resistant protective gearHeat resistant

protective gear

Comfortable safety shoesComfortable safety shoes

Casting shop:

Adverse Conditions:

1.Molten metal handling

2.55C ambient temperature

3.Working with die temperature of 350C

Air regulatorAir regulator




Daily Management System

Role Clarity

Development through collaborative approach

- Openness to provide and implement ideas

Higher the levels – wider the focus




Higher the levels – wider the focus

Observation by Supervisors

Observation by

Executives

Observation by

Manager

Observation by

Plant Head

View by

various levels

View by

various levels

Check on Check function responsibility at every levelCheck on Check function responsibility at every level




Communication across level

Skill management – Multiskilling & structured training

Capability building - Development of specialists

Build systems adaptive to changes

Element # 3





Element # 3







Communication across levels

Seamless communication

Change control displays

Element # 3




Dept. Head’s Monthly Communication Meeting

Seamless Communication2-way Communication at all levels

Dept. Head’s Daily Communication Meeting

“Communication is the real work of leadership.”





Element # 3







Model of Manufacturing ExcellenceS

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usta

inab

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yInvolvementInvolvement

Ow

ners

hip

Ow

ners

hip

IntegrationIntegration





The approach

• Getting Together

• Learning together

• Achieving together

Building Quality Supply Chain

By

CII - CLUSTER



Employee Quality (TEI)• 3M• 5S• Kaizen, Suggestion Scheme• Cost Consciousness

Equipment Quality• Model Machine• Breakdown Reduction

Management System • H R Management• Cost Management• Energy Management• SMED• MIS - Key Indicators

Product Performance• Flow Manufacturing• Problem solving• Poka Yoke• Product Profitability

Motivated Employees

HealthyEquipments

Good Management Practices

Reliable Quality &Delivery at low cost

Com

peti

tive

ness


CII – CLUSTER ROAD MAP



Cluster Methodology

• Assessment & short Listings• Kick-off• Common Training Programmes• Individual handholding visits by counselors • Review Meetings in the premises of one of the

companies followed by visit to the company. • Documentation and sharing of improvements• Closing ceremony




Not Right First TimeNot Right First Time Stock Turnover (Inventory Turn Ratio-ITR)Stock Turnover (Inventory Turn Ratio-ITR) Delivery Schedule AchievementDelivery Schedule Achievement Floor Space UtilizationFloor Space Utilization 5S5S Quick Changeover- Customer ResponseQuick Changeover- Customer Response SafetySafety AbsenteeismAbsenteeism No. of suggestions per employeeNo. of suggestions per employee Employees involved in Improvement ActivitiesEmployees involved in Improvement Activities Cost of Internal Non-conformitiesCost of Internal Non-conformities Machine Breakdown (Hours)Machine Breakdown (Hours) Machine Breakdown (Frequency)Machine Breakdown (Frequency) Energy Cost SavingsEnergy Cost Savings

KEY INDICATORS FOR SUPPLY CHAIN




Major Benefits CII - Cluster


CII – MOHALI CLUSTER BENEFITS





CII – JALANDHAR CLUSTER BENEFITS

Turnover Range of Cos – Rs 10 Crores to Rs 35 Crores Product Profile of Cos – Hand Tools

Tangible Results (Avrg) of Jalandhar Cluster

+ Before Joining the cluster # One year after joining the cluster

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Total Savingsachieved byCluster companies- Rs. 9.5 Crores





CII – GURGAON CLUSTER BENEFITS

Turnover Range of Co’s – Rs 2 Crores to Rs 25 Crores Product Profile of Co’s – Auto Components

Total Savings achieved by Cluster companies - Rs. Crores2.5



Any Queries can be forwarded to

[email protected]

harinder jeet singh principal counselor & head

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