reliability management at asian paints_team 3
TRANSCRIPT
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India's largest paint company
Ranked among the top ten Decorative coatings
companies in the world
Turnover of INR 66.80 billion
Operations in 17 countries across the world
with 23 paint manufacturing facilities
Service consumers in 65 countries through
Berger International, SCIB Paints – Egypt, Asian
Paints, Apco Coatings and Taubmans.
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“Reliability is one of the solid pillars on
which SCM rests upon & functions
effectively ” Vikram Jaisinghani, GM-
Manufacturing
Divides whole Supply chain into
◦ Aids/Enablers
◦ Drivers
Aids: Encompass all software tools such as
planners, B2B solutions, schedulers etc.
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Drivers: Ground realities -> can be show-stoppers
if not handled properly & taken care
immediately(this is Reliability is all about) -> ‘R’
factor
Five pillars of Reliability
◦ Quality
◦ Environment
◦ Safety
◦ People
◦ Materials
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ISO 9001: 1994 SystemsConsolidation of SystemsImproving Quality A
Millennium Quality Policy AnnouncedAll Plants certified under ISO 9001: 2000 StandardsImprovements made in Quality SystemsNew Areas like ESF, Dealer Tinting Systems, 5S brought under the purview of ISO 9001
Zero Deviations
Six Sigma
1995 2000 2003Quality Movements through the years
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Early nineties: Quality was inspection
1992: APIL decided to work on ISO 9001-1987
1995: Mumbai plant certified ISO 9001-1994
(First Indian paint industry)
1995- 1997: Patancheru & Ankelshwar
certified ISO 9001- 1994 std
1995- 1999: Consolidation of quality system
Approval with deviations (AWD’s) & rejections
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2000: Millennium Quality Policy (Intent to do
things right the first time & Philips Crosby std of
Zero defects)
New Areas like ESF, Dealer Tinting Systems, 5S
brought under the purview of ISO 9001
Quality :- Process point of view than function
20 key customer- impacting process: New
product introduction, customer feedback process,
design & development process, std process
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Post 2000- Zero deviation target and avoid
recurrence (but deviations were still
plummeting)
Shifted its focus to reworks
Started training its employees in 6 Sigma
(under banner of Root Cause Analysis (RCA))
– 1st in manufacturing function -> Supply chain
& technical functions
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GM- Manufacturing (Six sigma black & quality
engineer (by ASQ))
Factory managers – Six Sigma Green belt
(reviews 6σ projects)
Train entire staff in 6σ green belt + 6 black belts
6σ training was mandatory & they should deliver
at least one successful project in financial year
-> linked to performance feedback &
measurement system
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Focus on problem-selection criteria (linked to business
goals) - > Project charter
Team leader: calculates the cost of poor quality &
difference between entitlement & ‘As Is’ of process
List of themes released by GM: (Critical business
requirements)
◦ Cost
◦ Waste Minimization
◦ Cycle time
◦ Quality
◦ Standardization
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Factory Manager (Over all Champion)
Project Guide/ Project champion (Black belt)
Team Leader (Green belt)
Team members (Actual doers)
Project Guide-> reviews the progress, gives inputs to the team on proper statistical tool selection, data collection & analysis of the results (ensures rigorous application of DMAIC methodology)
Project champion -> supports & ensures ownership of all implements (resource constraints, coordinates interdepartmental issues, implement improvements)
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Team Leader -> ensures timelines are met, DMAIC
methodology is applied with adequate rigor & discipline
Administration manager -> Cost-related projects are signed off
Factory Manager -> Supports entire initiative & decides how
the RCA initiative is deployed in plant
All improvements -> locked in financial budget or procedures of
quality system (current & future years)
Shared with rest of the organization in the best practice meet
2002-03-> Manufacturing function completed 102 projects
APIL has increased the reach of 6σ from supply chain &
technology to rest of organization
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Some of the key challenges involved were:◦ Reduce the data transfer time◦ Reduce the risk◦ Avoid interruption due to LAN/WAN downtime.◦ Parallel availability of the switch for the other
administrative tasks during the same period.. Six Sigma at Wipro simply means a measure of quality
that strives for near perfection 1997-98 to 2006-07
◦ Black belts -> 13 to 180 ◦ Projects -> 80 to 1500 ◦ Saving -> 48 to 1800 (Million Rs)
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The three dimensions of environment:
Cle
an
En
viro
nm
en
t
Natural Resource Conservation
Material Productivity
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Measures taken:
MBA
Daily monitoring system of all types of waste
generation at each source
Segregation of waste into hazardous and non-
hazardous material and giving the required
treatment, Implementation of waste segregation
system.
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Optimizing batch cycles and streamlining
production scheduler
Design of environment friendly ingredients-
based formulations
Good manufacturing practices implemented
at the shop floor along with mass awareness
building, targeting reduction of waste at
source
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Conserves natural resources
Avoids waste treatment and disposal
Reduces the need for addition of fresh raw
materials to the process
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Initiatives taken:
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Reduction in water solvent Reduction in water solvent disposaldisposal
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To achieve ‘Zero effluent disposal’:
Improved effluent treatment facilities
Stringent monitoring of input and output parameters
Reduced discharge from plants due to:
Installation of block level collection pits to monitor
the hydraulic and organic load
Institution of equalization tank pre-formulating
scheme to ensure threshold organic content at ETP
inlet, etc.
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Precious natural resources Water
for paint industry Power
Fuel
Water
Mapping of water distribution network
Identifying water consumption reduction
opportunities
Daily water reconciliation system across the plant
Rain water-harvesting scheme
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Power and fuel
Reduced process losses by initiatives such as
overall asset effectiveness, first pass yield, etc.
Reduced power consumption due to
• Conversion of generator sets from HSD-based
to LDO-based
• Modifications to power intensive areas like ETP,
incinerator cold storage areas
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The company's four paint plants and the two
chemical plants have the ISO 14001 certification
for environment management standards.
Asian Paints has built a Total Water
Management (TWM) Centre, at its Bhandup
manufacturing facility, which is the first of its
kind in the entire country.
Paint plants -'zero industrial discharge'
capability, emulsion manufacturing facility-'zero
waste' status, principle of "green productivity".
Ongoing Environmental Ongoing Environmental Initiatives:Initiatives:
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Asian paints operations falls under the ‘Hazardous process’
industry as per Factory act 1948
APIL believes that positive safety culture are characterized
by communication founded on
◦ Mutual trust
◦ Shared perceptions of importance of safety
◦ Confidence in efficiency of preventive measures
Safety is placed at the motivational center of the
organization
Operational effectiveness of manufacturing facility is
enhanced -> Shop floor is safe to work at -> there by frontline
people to channelize their energies on process, equipment
health
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1999: Study to gauge the health of safety systems
The concept of “Migration to World Class
Standards”
Aim: Improve existing safety systems, technical up
gradations to improve safety
2002: All 4 manufacturing units started adopting
‘British Safety Council standards’
First Phase: Systematic approach of preparing the a
safety manual as per BSC requirements
Next: Detailed gap analysis with reference to existing
system
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Internal Trained safety
Auditors
General Manger (Manufacturing)
Factory
Safety Representatives
Safety Officers
Safety Executiv
es
Production
Manager
Plant Engg
Manager
Other Manager
s
Safety Coorinators
All employees
First Aid squad
Fire fighting squad
Plant safety
committee
Members
Departmental Safety commitee
Personal Manager
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Production Manager -> stand by for Factory
Mgr
All safety reps -> nominate their 2nd in
charge (& mentioned in display board)
Photographs of all starting from GM to
safety reps to be put along with name
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2002-2003: Inter-plant competition
AP
◦ worked on guidelines of BSC
◦ Focus upon taking preventive measures
◦ Make operations mistake proof
Benefits reaped : Reduction in the number of reportable
accidents
4 plants is conferred with the 'Sword of Honor' by the
British Safety Council for the second time, considered
the pinnacle of achievement in safety across the world.
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Develop and implement occupational health and safety management system to comply with TIS 18001 certified from the management system certification institute (MASCI) since 2001 and was OHSAS 18001 certified since 2004
Implement preventive and corrective action to prevent hazard from machinery, equipment, fire, chemical, and all moderate risks or higher level including control all risk by setting up annual occupational health and safety objective and target and communicate to all relevant persons to perform for continual improvement.
Support suitable and sufficient resources including manpower, time, budget and training program.
Stress to all employees, contractors, and others working in its behalf their responsibility and accountability for safe performance on the job and encourage safe behavior off the job.
Undertake appropriate reviews and evaluations of its operations to measure progress and to ensure compliance with this safety policy.
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Change Initiatives:
Introduction of state-of-the-art technology, automation
in core operations as well as in storage, EHS facilities
aiming at reliable, safer and high-quality outputs
Introduction of cultural initiatives such as 5S, TPM,
RCA aiming at improving effectiveness of operations
Redefining existing performance parameters –goal for
quality redefined as ‘zero defect’ with ‘right first time’
and ‘continuous improvements’ as underlying
philosophy.
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Shift from ‘volume-driven’ organization to one in
which changes are implemented with reliable
delivery of volumes
Creating a more participative work environment
Roles redefined, employees at lower levels
empowered
Performance management system modified-
rewards linked to deliverables on the changed
expectations
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Workmen:
Productivity-based model-Activities
measured, quantified and converted into
norms/outputs-wages paid to workmen as
per performance against these standard
outputs
Assumptions of this model challenged by
new philosophy
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Cultural Interventions and settlements:
Role of workmen modified to address restrictive
practices, improve asset effectiveness and reward RFT
behavior
Workmen encouraged to participate in change
initiatives
Suitable reward mechanisms to recognize contribution
Empowered to take higher roles such as coordination
of change initiatives
Deterrents to combat inefficiency and absenteeism
that affected reliability of operations
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Staff:
Sources of staff recruitment examined
Roles of employees redefined, jobs enriched by
giving higher order roles to staff
Training programmes, awareness sessions held
CFT formed to implement change initiatives
Performance management systems and reward
mechanisms modified suitably
Communication channels revamped
Interplant competitions held
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Reliability is the heart and soul of supply
chain
‘R’ factor forms the core of supply chain
–has to be taken care of before
implementing enablers.
Advantages- Straight savings, a serious
contribution to the bottom line.
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THANK YOU!!!
Team 3:
Jebsy Alexander MBA09018 Nithya.G MBA09027 Poornima.V MBA09032 Sreekanth Sasidharan MBA09047