A Report of Industrial Training at Bosch

NIT Calicut

A report of

Industrial Training

at BOSCH [Type the document subtitle]

Lijo John

6/22/2011

A report of Industrial Training at BOSCH

National Institute of technology, Calicut Page 2

1. Introduction

The Bosch Group is one of the world’s biggest private industrial corporations. Headquartered

in Stuttgart, Germany, the Bosch Group has some 283,500 employees worldwide, and

generated annual sales revenue of 47.3 billion Euros in 2010. There are about 350 subsidiary

and regional companies around the world.

Time line of Bosch

1. 1886 – 1900: The Workshop for Precision Mechanics and Electrical Engineering

On November 15, 1886, Robert Bosch opened the “Workshop for Precision Mechanics and

Electrical Engineering” in Stuttgart. At the outset, Bosch worked with two associates to

construct and install all kinds of electrical equipment, such as telephone systems and electric

bells. However, the company’s startup capital of 10,000 German marks was soon used up and

they had to rely on loans. Robert Bosch invested most of the company's small earnings in

modern machines. He later described his first years as a self-employed businessman as a

“shambles”. The construction of the electric power station in Stuttgart in 1895 was one factor

that helped the young company on the road to economic recovery by creating new jobs for its

installation business. The second factor was the magneto ignition device, which had already

become a linchpin in the company’s economic success

In 1887, Robert Bosch had been approached by a customer and asked to produce a magneto

ignition device based on a model made by the engine manufacturer Deutz in Cologne. Rather

than just copy the original device, Bosch improved on it displaying a mindset that would later

be reflected in his guiding principle of continuous improvement. The magneto ignition device

generated an electric spark that ignited the air-fuel mixture in the cylinder of a stationary

internal-combustion engine.

In 1897, Bosch was the first to adapt a magneto ignition device to a vehicle engine. In doing

so, he solved one of the greatest technical problems faced by the nascent automotive industry.

2. 1901 – 1923: Becoming a global automotive supplier

On April 1, 1901, 45 associates moved into the new “Elektrotechnische Fabrik Robert

Bosch” (Robert Bosch Electrical Engineering Factory). That same day, his former apprentice



Gottlob Honold also rejoined the company. In less than a year, Honold went on to develop a

high-voltage magnetic ignition system with spark plugs. When he unveiled the first prototype

in December 1901, Robert Bosch was very impressed, declaring: “You have hit the bull’s

eye!” This sentence marked the start of the history of innovations at Bosch.

In 1898 Bosch began to establish sales offices outside Germany – first in the U.K., followed

by France a year later, and then Austria-Hungary. Bosch was soon represented in nearly all

European countries. The first steps on other continents were taken in 1906 in the U.S. and

South Africa, followed by Australia in 1907, Argentina in 1908, and China in 1909.

Bosch launched another automotive breakthrough in 1913 – the Bosch automotive lighting

system. Comprising a generator, battery, voltage regulator, and headlights, this was the first

complete system from Bosch and it created the basis for today's automotive electrical systems

By around 1925, the network of international sales offices was already larger than it had been

in 1914.

Bosch automotive lighting

Bosch launched another automotive breakthrough in 1913 – the Bosch automotive lighting

system. Comprising a generator, battery, voltage regulator, and headlights, this was the first

complete system from Bosch and it created the basis for today's automotive electrical

systems.

The electrical installation business increasingly played second fiddle to automotive

technology, before it was eventually discontinued and the company focused on its goal of

becoming an international automotive supplier. Shortly before the outbreak of the First World

War in 1913, Bosch generated more than 88 percent of its sales outside Germany.

The First World War

When the First World War broke out in 1914, Bosch was forced to convert its entire

production facilities to meet the needs of the military. However, as Robert Bosch did not

wish to profit from the war and the suffering it brought, he donated the profit generated from

armaments contracts – some 20 million German marks – to charitable causes. Despite the

extremely difficult conditions, the company recovered from the consequences of the war,

particularly the expropriation of large parts of its interests outside Germany, surprisingly

quickly. By around 1925, the network of international sales offices was already larger than it

had been in 1914.



3. 1924 – 1945: From automotive supplier to diversified group

The workforce and production figures continued to rise steadily until the fall of 1925, when

sales in the European automotive market suddenly collapsed. The massive slump hit Bosch

hard, with the number of associates falling from 13,000 to 8,000 in just a few months. And it

was not just workers in the workshops that lost their jobs during the crisis – the

rationalization measures also affected the company’s senior executives. The company’s board

of management was stripped back from eleven members to just three members and three

deputies. As part of the reshuffle, Robert Bosch also handed over the management of the

company to a small committee: Hans Walz was given responsibility for commercial affairs,

Hermann Fellmeth for engineering, and Karl Martell Wild was put in charge of sales and

human resources..

New areas of business

The crisis was quickly brought under control – thanks in part to the rationalization measures

introduced just before the crisis broke, in particular the continued changeover to assembly-

line production. One lesson learned from the crisis was the risk of focusing on just one sector.

As a result, the new management started to look around for other promising areas of business.

Bosch first branched out into the power tools sector with the launch of a hair trimmer in

1928, before moving into the household appliances sector by bringing out the first Bosch

refrigerator in 1933. In 1932, Bosch acquired the heating systems business of Junkers and,

the same year, Blaupunkt marketed the first series-produced car radio in Europe. Bosch also

expanded its automotive technology portfolio during the 1920s, adding products such as

bicycle lamps, batteries, the Bosch horn, indicators, and windshield wipers. A major

breakthrough came in 1927 with the launch of the diesel injection pump, first only for trucks

and then for passenger cars in 1936.

Bosch under National Socialism

Under National Socialist rule in Germany from 1933 to 1945, senior executives at Bosch

found themselves in a predicament. On the one hand, the company was integrated into the

economic system of the National Socialist regime. When the Second World War broke out in

1939, Bosch had to convert all its manufacturing facilities to produce military commodities.



Like all other companies involved in the manufacture of armaments, Bosch was assigned

prisoners of war and later also forced labor to boost production.

On the other hand, Robert Bosch and senior Bosch executives supported resistance against

Hitler and provided those facing persecution with money or help with emigration. In 1969, on

behalf of the company, Hans Walz accepted the title of “Righteous Among the Nations”

bestowed by the Yad Vashem Shrine of Remembrance in Israel in recognition of these

efforts.

To ensure that the company remained in family ownership, Robert Bosch changed the

company from an AG (public limited company) to a GmbH (private limited company) in

1937. The following year, four years before his death, he wrote his will.

By the end of the war in 1945, large areas of the Bosch plants had been razed to the ground as

a result of Allied air raids. Robert Bosch did not live to see the destruction, dying on March

12, 1942.

4. 1946 – 1959: Rebuilding and the economic miracle.

After 1945, despite the extremely difficult conditions, Bosch was able to build on its earlier

successes surprisingly quickly. After the currency reform in Germany in 1948, the company

enjoyed a period of rapid growth.

Return to global markets

This growth was at first very fragile as a result of the decartelization program pursued by the

victorious Allied forces. The feared dismantling of the whole company and loss of most of its

subsidiaries was nonetheless averted in 1952, although Bosch had to make its patents and

industrial designs available to competitors. All the sales offices and production facilities

outside Germany, however, remained expropriated. As after the First World War, the

company had to start again from scratch on the international stage. Nonetheless, the network

of sales offices and customer service centers covered over 130 countries again as early as

1956. At this time, Bosch focused increasingly on setting up local production facilities.

During the 1950s, for example, production started in India (1953), Australia (1954), and

Brazil (1957).

Innovations

Although Bosch focused primarily on automotive technology in the first years after the war,

the company soon broadened its product range again to include refrigerators, radios, heaters,



and power tools. Blaupunkt introduced the first VHF car radio in Europe in 1952. The launch

of the “Bosch Combi” that same year marked a turning point for the company’s power tools

business as it reached out to the new target group of DIY enthusiasts.

In the area of automotive technology, Bosch initially reestablished the technology at pre-war

levels, while engineers worked flat-out to develop new, pioneering technology. The

mechanical gasoline injection system for passenger cars was taken into series production in

1951. The first semiconductors to be installed in a car (variodes) represented a further

milestone in company history. They were first used in 1958 in regulators for generators.

5. 1960 – 1989: Founding of the divisions and breakthrough in electronics.

As a result of rapid growth worldwide and full employment in Germany, a labor shortage

developed in the Stuttgart area, then the focus of worldwide production and the hub for

international exports. Bosch therefore recruited guest workers from southern Europe and

opened numerous new locations, including today’s plants in Homburg, Ansbach, Nuremberg,

Reutlingen, and Blaichach.

Founding the divisions

This enormous growth made it necessary to reorganize the company’s centralized structure.

The first step in this direction was taken on July 1, 1959, when the power tools engineering

operations were brought together to form an ‘independent division’. This was the pilot project

for the establishment of a divisional structure throughout the company and the creation of a

network of relatively independent divisions with responsibility for achieving their own

individual sales and profit targets. This phase of profound change is closely linked with Hans

L. Merkle, who joined the board of management on October 1, 1958, before being appointed

chairman on April 1, 1963.

Corporate constitution

In 1964, the executors of Robert Bosch’s will laid the foundation for today’s corporate

constitution. Vermögensverwaltung Bosch GmbH acquired the majority of the capital stock

of Robert Bosch GmbH from the heirs of the estate in 1964, transferring the voting rights to

today’s Robert Bosch Industrietreuhand KG (Robert Bosch Industrial Trust), the body

responsible for carrying out the company’s entrepreneurial ownership functions since then.

In 1969, Vermögensverwaltung Bosch changed its name to Robert Bosch Stiftung GmbH

(Robert Bosch Foundation) to underline the social focus of its activities. To this day, the



foundation supports projects in the areas of education, health, international relations, society,

culture, and science. Robert Bosch Stiftung currently holds 92 percent of the share capital of

Robert Bosch GmbH. Most of the remaining shares are held by the Bosch family.

This corporate constitution continues to play a key role in securing the entrepreneurial

freedom and financial independence of the Bosch Group. Most of the earnings generated

remain within the company, where they are used to secure its future. This allows the

company to plan over the long term and to invest heavily in the future without borrowing

from the capital markets. Robert Bosch Stiftung is paid a dividend, allowing the body to

sustain its commitment to charitable causes.

New divisions

In 1963, Bosch formed the Packaging Technology division through a series of acquisitions.

The pneumatics and hydraulics operations were merged to form the later Automation

Technology division, a precursor of today’s Drive and Control Technology division.

The board of management was particularly keen to expand the company’s international

business, laying the foundation for a second location in India, in Nashik, in 1973. The same

year, Bosch reached an important milestone in the U.S. by opening its first production facility

there since the Second World War – in Charleston, South Carolina. In 1974, Bosch generated

more than half of its sales outside Germany again for the first time since 1932.

Under the leadership of Marcus Bierich, chairman of the board of management from 1984 to

1993, Bosch expanded and pooled its telecommunications activities in the 1980s to form a

new business sector. Key areas in this merger included the radio technology business, which

was founded in 1954, the cell phone business, ANT Nachrichtentechnik, which was acquired

in 1982, and Telefonbau und Normalzeit Lehner & Co

Safe, clean, economical

The period between 1960 and 1989 at Bosch is shaped by significant product innovations,

particularly in automotive technology. At a time when discussion was starting to focus on

road safety and environmental protection, these product innovations demonstrated Bosch’s

commitment to low-emission, economical, and safe cars. Bosch summed up this commitment

in its “safe, clean, economical” campaign launched in 1974. The innovations included the D-

Jetronic electronic gasoline injection system (1967), the ABS antilock braking system (1978),

the EDC electronic diesel control (1986), and the Blaupunkt TravelPilot navigation system

(1989).



6. 1990 – 2010: Solutions to the challenges of globalization.

The fall of the Iron Curtain also heralded a new era for Bosch. Access to the markets in

Eastern Europe and Asia in particular accelerated the pace of globalization, a process by

which previously distinct regional markets started to intermesh worldwide. Bosch was now

faced with the task of meeting these new challenges and grasping the opportunities that arose.

The share of sales generated outside Germany rose from 51 percent in 1990 to around 76

percent in 2009.

Herrmann Scholl took over as chairman of the board of management on July 1, 1993, a

position he held until 2003. He focused mainly on stepping up the company’s activities on the

emerging markets of Eastern Europe and Asia and safeguarding its innovative strength.

Opportunities in Eastern Europe and Asia

As early as 1994, Bosch had gained a foothold in 13 countries of the former Eastern Bloc.

Later on, Bosch opened a large number of manufacturing facilities in the region, for example

in Jihlava and České Budějovice in the Czech Republic, Wroclaw in Poland, as well as in

Miskolc, Hatvan, and Eger in Hungary.

In Japan, Bosch gradually acquired a majority holding in Zexel Corporation, its biggest

Japanese affiliated company, completing the process in 1999. In 2005, this corporation was

merged with the other Bosch companies in Japan to form Bosch Corporation, headquartered

in Tokyo.

In India, where the fourth manufacturing location was opened in 1999, business also

developed rapidly. Up to 2003, the associates at Mico (today known as Bosch India)

produced a total of 25 million single-cylinder diesel injection pumps for stationary engines

and a further ten million for passenger cars and commercial vehicles.

Up until 1994, Bosch was only represented in China by companies working under license

and, from 1989, by one representative office. When the Chinese government recognized the

importance of foreign suppliers for the development of its own automotive industry at the

start of the 1990s, this market also opened up for Bosch. Following lengthy negotiations, a

breakthrough was achieved in 1995 when the Chinese government awarded Bosch the



strategically important contract to equip vehicles produced in China with electronic gasoline

injection systems. Bosch started assembling these systems through the joint venture company

UAES in Shanghai in 1996. 1996 also saw the start of production of diesel technology in

Wuxi, power tools in Hangzhou, and spark plugs in Nanjing. Further joint ventures quickly

followed, and Bosch founded a holding company for China in 1999.

Growth through acquisitions

Acquisitions in all the business sectors had a major impact on business. For instance, Bosch

acquired the brake division of Allied Signal in 1996, the industrial technology specialist

Mannesmann Rexroth in 2001, and the heating technology manufacturer Buderus in 2003.

The Security Systems division also expanded its portfolio by acquiring Philips

Communication Security Imaging, Telex Communications, and CCTV Extreme. The

packaging technology manufacturers Sig Pack, Pharmatech, and Paal were also taken over in

2004, 2007, and 2008 respectively. These acquisitions not only reinforced Bosch’s market

position in these segments, they also helped balance the company’s business structure.

In other areas, Bosch chose to hive off business activities when significant market

developments virtually excluded the possibility of successful continuation. For example,

Bosch gradually sold off its telecommunications activities, keeping only the navigation

system and car radio business (known today as the Car Multimedia division) and the security

technology business, which went on to become the Security Systems division in 2002.

Invented for life

The spotlight remained trained on innovation in the 1990s, creating the perfect bridge to

today’s strategic slogan “Invented for life.” The ESP electronic stability program launched in

1995 was both a technological milestone and a commercial success. It prevents vehicles from

skidding and thus plays a key role in improving road safety.

Many other innovations followed, including the common-rail system for high-pressure diesel

injection (1997), DI-Motronic gasoline direct injection (2000), driver assistance systems such

as the ACC adaptive cruise control (2000), and the parking assistant (2005). In 2003, Bosch

introduced the Ixo, the first cordless drill/driver based on lithium-ion battery technology.



Sustainability and corporate responsibility

Franz Fehrenbach, who succeeded Hermann Scholl as chairman of the board of management

on July 1, 2003, continued the strategy of systematically reducing the company’s dependence

on the automotive industry by targeting above-average growth in other business sectors. In

doing so, Fehrenbach placed great importance on globalization, environmental protection,

resource conservation, and energy efficiency. An important decision was taken in the spring

of 2008, when Bosch acquired the German solar cell manufacturer Ersol to create the new

subsidiary Bosch Solar Energy.

The global economic crisis in 2008/2009 caused Bosch sales to fall by around 15 percent to

approximately 38.2 billion euros in fiscal 2009, and meant that the company recorded an

operating loss for the first time since the Second World War. However, the crisis did not

affect the company’s long-term strategy, a strategy which is not only geared toward opening

up promising areas of business, but also incorporates an understanding of corporate

responsibility based on the principles of the company founder Robert Bosch. He appreciated

that corporate responsibility was essentially about finding a balance between business success

and social concerns. The task now is to expand this concept to include environmental

protection. In 2007, Franz Fehrenbach said: “Our top priority is without question to secure

the company’s long-term future, but we are also equally committed to doing so by achieving

a balance between ecology, economy, and […] corporate social responsibility.” This

statement is based on the belief that a company will only be successful in the long term if it

pursues a policy of sustainable business management and does not infringe on social and

ecological interests.

BOSCH in India

India, Bosch is a leading supplier of technology and services, and has a strong presence in the

country at numerous locations in diverse industry segments. Bosch set up its manufacturing

operations in 1953, and has grown over the years to 14 manufacturing sites and 3

development centres. Bosch employs about 22500 associates in India, and in business year

2010 achieved total consolidated revenue of over 6630 crores.



In India, the Bosch Group operates through the following companies –

• Bosch Ltd.

• Bosch Chassis Systems India Ltd.

• Bosch Rexroth India Ltd.

• Robert Bosch Engineering and Business Solutions Ltd.

• Bosch Automotive Electronics India Private Ltd.

• Bosch Electrical Drives India Private Ltd.

Bosch Ltd.

Founded in 1951, Bosch Limited is India’s largest auto component manufacturer and also one

of the largest Indo – German companies in India. The company generated net sales of Rs.

6630 crores in 2010. The Bosch Group holds 71.18% stake in Bosch Limited.

Bosch Limited has a strong nationwide service network which spans across 1,000 towns and

cities with over 5,000 authorized representations to ensure widespread availability of both

products and services. The company is headquartered in Bangalore with manufacturing

facilities at Bangalore, Naganathapura (near Bangalore), Nashik, Jaipur and Goa.

Bosch Chassis Systems India Ltd.

The Chassis Systems Brakes Division develops and manufactures innovative braking systems

for the automotive industry within a global network. As part of the world’s largest

independent parts supplier to the automotive industry we offer our customers advanced

technology, quality and excellent services, all from a single source.

Full Brakes System Competence is strength of Chassis Systems Brakes. We offer all products

and services around braking systems. That includes: Noise Vibration and Harshness,

integration of the newest simulation models, competence in hydraulic braking systems, disc

brakes, rotors, friction material and close coordination with brake modulation like ABS and

ESP.

The continual improvement of driving security and comfort supports our aspiration to be the

preferred partner of our customers.



Areas of operation:

• Hydraulic braking systems: Brake boosters, master cylinders and brake-assistance

systems

• Wheel brakes: Disc brakes, drum brakes, parking brakes and rotors

Bosch Rexroth India Ltd.

Bosch Rexroth is one of the world’s leading specialists in the field of drive and control

technologies. Under the brand name of Rexroth the company supplies more than 500,000

customers with tailored solutions for driving, controlling and moving. As The Drive &

Control Company, Bosch Rexroth develops, produces and sells components and systems in

more than 80 countries in the technology fields Electric Drives and Controls, Industrial

Hydraulics, Mobile Hydraulics , Linear Motion and Assembly Technology and Pneumatics.

Robert Bosch Engineering and Business Solutions Ltd.

Robert Bosch Engineering and Business Solutions Limited (RBEI), is a 100% owned

subsidiary of Robert Bosch GmbH, one of the world’s leading global supplier of technology

and services, offering end to end engineering, IT and Business solutions.

With over 7500 associates, we are the largest software development center of Bosch, outside

Germany, indicating we are the technology flagship of Bosch in India. We have a global

footprint with presence in US, Europe and the Asia Pacific region. We are ISO 9001:2008

certified (2009), appraised at CMMI-L5 (2006) and also ISO 27001 certified (2009). We

have two state-of-the-art facilities in Bangalore, and a second development center in

Coimbatore.

We nurture, build and sustain enduring customer relationships to enable direct operational

and strategic benefits to our customers. We make it happen through qualified, motivated and

flexible professional associates, who uphold the heritage and values of Bosch - time-tested

over 124 years of a successful journey; a journey marked by quality, reliability and

innovation of service to enhance the interest of our customers and the community we live in.



Bosch Automotive Electronics India Private Ltd.

Bosch Automotive Electronics India Pvt. Ltd. (RBAI) is a 100% subsidiary Robert Bosch

GmbH, incorporated in April 2008 to manufacture Electronic Control Units for the

Automotive Electronics Division. RBAI will cater to both domestic and International OE

Customers via the Diesel Systems and Gasoline System divisions. Like any other Automotive

Electronics Plants, RBAI is also very committed to the highest level of quality standards. It

focuses on continuous intensive training to its associates with support from its lead plant

thereby achieves the global competencies too meet the customer expectations.

Bosch Electrical Drives India Private Limited

Bosch Electrical Drives India Private Limited has been formed since April 2008 with the sole

objective of dealing Electrical Drives products from Robert Bosch GmbH, Germany and also

from its affiliated and subsidiary companies in the rest of the world. Bosch Electrical Drives

India Private Limited is engaged in Sales, Manufacturing, Development and Application of

Wiper Systems including Wiper Motors, Engine Cooling Systems including fan motors,

HVAC blower motors, window lift motors and other system components

Bosch provides solutions for businesses in primarily three areas:

1. Engineering Services

2. IT services

3. Business services

Bosch focal industries:

1. Automotive industry

2. Industrial Technology

3. Consumer Goods and Building Technology

4. Engineering and IT services.

Automotive Industry

Bosch innovations have shaped cars from the start and will keep doing so in future. As the

world’s biggest independent automotive supplier, Bosch focuses on innovations to make

driving safer, cleaner and economical. Automotive Technology is the largest business



segment of Bosch in India, supplying to the local automotive industry, and exporting

components overseas.

Business divisions: Diesel Systems, Gasoline Systems, Chassis Brakes, Automotive

Accessories, Car multimedia, Starters and Generators, Energy and Body Systems, Electrical

Drives, Spark Plugs and Glow Plugs.

Industrial technology

Bosch Rexroth AG is an expert for all drive, control and motion technologies. The Bosch

Packaging Machines division in India brings the global expertise to address the needs of the

local confectionary and pharmaceutical industries. The Special Purpose Machines (SPMs)

and High Precision Toolings division engineers customized equipment using cutting-edge

technologies for industries.

Business divisions: Automation technology, Packaging Machines, Special Purpose Machines.

Consumer goods and building technology

The Bosch Power Tools division in India is the market leader in the segment, offers a

complete range of power tools for construction, woodworking and metalworking industry;

cordless tools, accessories and tools for DIY (Do-It-Yourself) enthusiasts as well. The

Security Systems division in India is one of the leading security technology players with a

comprehensive portfolio.

Business divisions: Power Tools, Security Systems

Engineering and IT Services

The Engineering and Information Technology division of Bosch in India is the largest

development center of Bosch outside Germany. For over 15 years, it has been the preferred

engineering services and solutions partner for the Bosch Group worldwide.



BOSCH PRODUCTION SYSYTEM

Bosch designs, manufactures and sells its products throughout the world from 250

manufacturing sites in 90 countries. As one of Europe’s most innovative companies, (Bosch

is the third biggest lodger of patents in Europe), the firm is well placed to anticipate the

challenges every European manufacturer will have to face in the future. Its response has been

to emphasise innovation in all areas and to provide a production system that will support this

by enabling it to compete with new competitors from all over the world. To meet these

challenges the company has developed the ‘Bosch Production System, to match its innovative

and operational capabilities.

With half its 230,000 workforce outside Germany, Bosch is a global player in the very real

sense of the word. Its three business sectors create products ranging from car components;

capital goods like packaging and locomotive technology to household appliances. And each

division has to respond to the opportunities and threats of their respective global market (see

box). The current market position of its power tools division illustrates the challenge, where

cheaper competitors from the Far East have reduced Bosch’s share of the German market

from 72% to 37%. “Bosch is countering with innovation,” claims Franz Fenrenbach,

chairman of the board of management, who spells out the rules every innovative European

manufacturers will face in the years ahead: “Innovations will only become established in

markets if they are translated into products offering great customer benefit, combined, in our

case, with cost-effective large-scale series production and maximum precision and quality.”

To deliver these objectives, Bosch is rolling out its own Bosch Production System (BPS),

which marries together the group’s innovation and production capabilities. The project is an

ambitious one, uniting the group’s many production activities and locations into a single

manufacturing methodology through its 250 manufacturing sites worldwide. Though

ambitious, the aim of the Bosch Production System (BPS) remains simple and succinct:

Increase customer satisfaction and value contribution through overall improvement of

quality, delivery and costs. Continuous Improvement Programmes have been implemented

through the group since 1992, with a variety of change programmes at plant level. The Bosch

Production System aims to converge these efforts, providing common metrics, benchmarks

and working methodologies through the group worldwide.



In Search Of Simplicity

What makes the Bosch Production System of interest to other businesses is not just its

bringing more coherence to the organisation (which embraces thousands of markets,

customers and suppliers), but the project’s aim of simplifying the operations of a company

that has built its competitive advantage on integrating complex technologies into each stage

of its activities. In its Automotive Technology division, for instance, one out of four members

of staff is a software specialist. Bosch has built its very considerable global success on

harnessing technology and innovation, and now it needed an all-embracing production system

to deliver it.

One of the big drivers behind the Bosch Production System was to lower investment and to

improve Quality. Bosch is extremely technologically-driven, and it spends a lot of money on

IT, but that generates problems. In some instances Bosch somewhat over-automated, and that

was also one of the drivers of BPS. To really get a change into the company it must start to

think that things are not that complex, and they start to think with and run simpler systems

and be more efficient.

As a company with so many markets, so much capability and so much technology, Bosch

generates a great deal of complexity. The only way to manage its global operations

successfully was to simplify them. The priority of the Bosch Production System, therefore,

was to refocus every Bosch plant on the performance factors that ensured efficiency was

being matched by quality output. And to achieve this, the new system focused on getting

‘flow’ into factories through eliminating waste and inventory. In the past Bosch had highly

efficient machines with huge buffers in between - and nobody could manage that system.

They had extensive computer systems to manage the entire production, and as always when

you do that it’s not manageable, because once you have unplanned changes in the market and

with your suppliers it becomes unmanageable – so the whole system is in a constant state of

chaos. In order to get away from this Bosch wanted to improve the flow of products from

their factories. That was the basic idea behind the BPS. Creating a consistent flow would, in

accordance with Lean Thinking principles, ensure more accurate planning, greater

transparency through the whole group and so identify potential synergies between plants. The

challenge was how to achieve it



The basis for Bosch’s new approach was the Toyota Production System and Lean Thinking

principles, as expounded by Daniel Jones, and both were active consultants in Bosch’s

project. The premise for any ‘Lean’ approach is that customer demand generates the ‘pull’

that drives production. Instead of ‘pushing’ production through the system and into

warehouses, production only takes place in direct response to customers’ orders, ‘pulling’

goods through production lines and straight to the loading bays. Inventory therefore is

avoided and seen as waste, and goods are produced only as customers require them. “Bosch

production system is based on pull on real customer ‘takt time’, and produced only in the

‘takt’ as customers want it. Then you also have a fast flow through your factory and this

requires very stable and very connected process.”

The focus on waste became a focus in communicating and driving the new manufacturing

approach, with its elimination from all activities as an overall target. This meant producing

the right part, in the right quantity at the right moment; “scheduled, produced, assembled and

transported” as Bosch term it – anything more is seen as waste and a signal that a process is

performing at “less than excellence”. Inventory – and inventory coverage – has therefore

become a key metric in Bosch’s production system, with any build-up of materials signalling

inefficiencies.

Rhythm and Flow – marrying manufacturing and logistics

Eliminating excess output and effort, means synchronising all activities to optimise

efficiency, much like fine-tuning an engine, so that everything runs to the same tempo.

Getting rhythm in the factory, that’s one of the key things in BPS. Most factories today

cannot recognise any rhythm; they have a lot of inventory buffers between processes. People

are working on production lines, then they wait for the next part to come or they leave the

line to get material. If you go into a really lean factory, though, you see exactly that

everything in manufacturing and logistics goes hand-in-hand and this is the highest most

efficient way of producing – to have flow and rhythm in the factory. And that rhythm has to

be in accordance with the customer takt, so that you work exactly to the customer demand.

This rhythm is a measure of the factory’s effectiveness, demonstrating that production

efficiency is being optimised and variation is eliminated. All the factory’s activities are then

done to the highest quality – because the most problems with quality come from interrupting

work – doing it today this way and tomorrow another way. One need to have a standard,



which should represent the current best practice of the company and those standards must be

connected so that you get the best results throughout the factory. And you can see the rhythm

in the factory –everything works hand in hand and there are is a minimum of inventory

around.

A consistent rhythm ensures a consistent flow through each production line. The objective in

developing the Bosch Production System was to extend such flows though each entire

factory, and ultimately through the entire group. When Bosch designed new production lines

in the past their major intent was to have highly productive single processes with the best

machines involved. But now for Bosch it is much more important to have very fast flow of

the product from the factory, so throughput time and inventories are their now one of their

most important numbers, to get the flow into their factories.

Flexibility & the Vision Thing

For such a system to work in any factory, least of all in a worldwide company, flexibility was

a key principle. The reality of a production system, built around such variable demand is that

there are no longer any hard or fast rules, instead there is a common approach and mindset,

driven by the same overall goals and vision. In practical terms for Bosch, this amounts to:

Flexibility regarding volumes, product variations and product generations.

By definition, such flexibility can only be achieved on each factory floor through autonomy

and managed diversity, with each site and manager being sufficiently skilled and empowered

to make the right decisions. BPS principals and Standards are the cornerstones for the

implementation in each factory, which follows a customized implementation schedule.

Achieving this required each factory to create its own picture of how it would implement the

BPS and what it would achieve from it. As part of the implementation of the Bosch

Production System, plant managers have to develop and present their vision of how their

factory will look like in five years, and how that vision will be delivered. Material- and

information flow as well as management involvement and team organisation have to be part

of that vision. Visualising how the system will work and be implemented provides focus for

all activities, creating clear priorities for decision-making.



DOING IT: The Practicalities of Implementation

The vital importance of management training in the implementation of BPS should not be

forgot. Because the Bosch Production System represents a whole different approach to how

the business operates, which demands more than mere instruction and instead requires

managers to re-assess how everything is done, and why, it is a paradigm shift that not

everyone finds easy to make. Many go into the meetings being complacent thinking ‘I know

all this already’, which is one of the main obstacles to introduce any production system.

Because people know some elements of the System, think they know it all and don’t see the

need to go deeper, but the basic understanding of BPS as a System approach isn’t there.

The emphasis in rolling-out BPS is on creating this understanding and its taking root in the

organisation. Instead of just instruction, Bosch uses a structured programme of lectures,

simulations (where over a three day introduction, participants like plant managers rebuild

production lines and measure the resulting performance), which culminates with site visits to

Japanese firms. A key objective is to ensure ‘value-mapping’ takes root, which ensures each

plant’s activities are seen from the perspective of customer value, generating ‘value streams.

The simulations rely on creating a recognisable material flow through the factory, with a

flow-oriented layout, built on small lot sizes and visible inventory. Simplification is key

throughout, with the Bosch Production System built on ‘just-in time’ principles and the

reduction of lot sizes (Bosch pilot lines use a “train” of carriages delivering what’s needs for

the next two hours of production). This means all key data is visible and easy to measure,

with real time information available throughout the shop floor.

The BPS is a business-wide initiative with, which combines top-down with bottom-up

initiatives, monitored by a steering committee that extends to board level overseeing the

project’s roll out. It is extremely important that top executives make it clear that to all the

division leaders that this is the highest priority. Every production system has a lot of

elements. For us the elements are not that important, for us what’s important and that

everyone – especially management– understands those eight principles and knows how to

apply them on the factory floor.

Next steps, next challenges – extending BPS

Once the BPS is established in its plants worldwide, the next, and very considerable

challenge is to extend the principles to its suppliers. “There’s huge challenge in getting it



through the supply chain to get a material supply exactly in the rhythm that it’s needed, so

materials arrive at the point of use exactly as they’re required. Winning over suppliers to the

new rhythm is an ongoing challenge already underway and critical to the success of the BPS.

That’s where they have buffers now – less in manufacturing but in the supply chain. But first

Bosch learnt it in their own factories, then the supplier gets in a rhythm too and then they

minimize inventory throughout the supply chain, which of course is waste. Not because of the

depreciation (it’s a lot of money, but it’s not that huge), but because it’s a sign of how well

your processes flow. The overriding metric is really the inventory coverage as it shows you

where you’re going to.

The Role of Quality

While Lean-based Production Systems extend the quality remit to everyone, one should not

forget about the importance of a stand-alone independent department (as does

Flextronics).You absolutely need a very strong quality department independent from your

manufacturing as an interface with the customer. You need to have firewalls for the customer.

Bosch has had Six Sigma blackbelts for a number of years and is, integrating it in to the BPS,

especially it the design of goods and processes.

It is the culture of pursuing perfection and the ability to eliminate variance that is key, and

quality standards only provide a guide for when such variations arise. In other words , what

we experience, is what we implement as a standard somewhere, it can be a working standard

or a kanban, we find that standard doesn’t last for ten minutes. We have a disturbance

somewhere and you can no longer follow the standards, and then what’s important is that you

have a process in place and people trained to eliminate those problems fast

and sustainably … Implementing standards is the easy part and every factory have lots of

them, like ISO 9000, but many of them are only on paper - the really important thing is that

variations from standards are discovered, and that counter measures are introduced swiftly,

and that I think in most of the factories is not organized effective enough - – not just in

Bosch.

In the product design phase Failure Mode Effects Analysis (FMEA) is an essential tool for

Bosch for quite some time now. [FMEA involves analysing the causes, risks and effects of

failures of systems and components, and is used as for prevention and contingency planning.

In past Bosch counter measures to potential problems were very much high automated testing



equipment, which is expensive and adds tremendous complexity to the manufacturing

processes. Now Bosch is focusing much more on the root cause of those potential problems,

eliminating them and applying simple poka yoke solutions [stopping all production to rectify

any problems) to prevent failures to occur. Now Bosch goes back into the design to check.

What makes Toyota strong is that they aim for perfect processes from an early design stage,

and carry out production in supported by a thorough and deep problem solving process.

The Final Frontier(s) and the Challenges

Manufacturers everywhere seem to have adopted Lean Sigma principles and variations of the

Toyota approach in the last few years. Because this approach builds on so many techniques,

is this the ultimate production system. Is this likely to be the dominant methodology for the

future?

This production system gives us the base to have one system in our factories. Right now

Bosch is in catch-up mode we all have to catch up twenty years on Toyota, and in that time

they won’t be stagnating. Toyota is thinking very intensely about where they want to go to

and Bosch too. Resting on this is not the right approach. Bosch has a huge challenge for the

next 2 to 3 years, of getting into this into the hands of plant managers, but they have to think

about how this system will renew itself all the time and what the next step is. What’s the

system in design engineering, in HR, in sales and how do they integrate? They have to

experiment and think deeply how to develop and integrate those systems.

The Bosch Production System aims at creating a simple, reliable and effective manufacturing

process, which are standardised and continuously improved in a very systematic approach by

the workforce. This requires a common set of standards, worldwide exchange of best

practices and continuously learning .Ultimately the Lean production methods Bosch is

introducing require flexible organisations that rely on continuous learning and creativity of its

people. . Rigidity in structure and outlook is no longer appropriate for global competitors.



BOSCH ELECTRICAL DRIVES INDIA PRIVATE LTD

Bosch Electrical Drives India Private Limited has been formed since April 2008 with the sole

objective of dealing Electrical Drives products from Robert Bosch GmbH, Germany and also

from its affiliated and subsidiary companies in the rest of the world. Bosch Electrical Drives

India Private Limited is engaged in Sales, Manufacturing, Development and Application of

Wiper Systems including Wiper Motors, Engine Cooling Systems including fan motors,

HVAC blower motors, window lift motors and other system components.

RBDI (Robert Bosch Drives India) located in Chennai, Tamil Nadu. Located just 3 km off NH

45 at a place called Guduvancherry caters to the need of various automotive giants like

Hyundai Motors India, Mahindra & Mahindra and Ford. It also acts as a tier two supplier for

Tata motors also. The main product that rolls out of the assembly line of Bosch is the Wiper

systems assembly and the Window lift Motor. The other products are Heat ventilation and Air

Conditioning (HVAC) motor, GPB motor, ECF motor and the Engine Cooling Fan Module

(ECFM).

The plant segregates its products into three categories, namely actuation systems, wiper

systems and thermal systems. The actuation systems mainly deal with the assembly of the

window lift motors. The main customers for this product are the Hyundai Motors India and the

Tata Motors. But Bosch acts as a tier two supplier, ie, it does not supply to the Original

Equipment Manufacturer (OEM). Here the direct customers to Bosch are IFB, Abishek who in

turn supply to HMI and Tata, Tata and HMI respectively. Most of the parts for the assembly

are obtained from the local suppliers without any compromise in the quality.

The Wiper systems assembly line assembles the wiper systems motor and the linkage

mechanism for both HMI and Ford. The plant has the capability to assemble for both left hand

drive and right hand drive cars. Presently the motor for the assembly is being imported from

Robert Bosch Korea but soon it will be manufactured in house. The other products from the

wiper systems are the reservoir assembly and the arm and blade assembly. The reservoir

assembly is for the HMI. This assembly line produces two products viz one way pump

assembly and two way pump assembly. The pumps for the assembly are being imported. The

arm and blade assembly line assembles the wiper arm and blade for the Ford and HMI. The

assembly line assembles the wiper arm and blade for both driver side and the passenger side

separately.



The thermal systems of the automobile like the motors required for air conditioning sytems

and engine cooling systems are also being taken care of in this facility. The main products that

are being assembled here is the HVAC motors and the ECFM. The major customers for

HVAC and ECFM are Subros, Renault and Tata motors.

Arm and Blade Assembly line

The arm and blade assembly line mainly deals with the assembly of the wiper arm and blade.

This part is the sub assembly for the entire wiper systems. This assembly along with the wiper

motor assembly forms the complete system. Bosch assembles this on the request of its

customers. The main customers for this assembly are Ford and Hyundai. The wiper system is

not same for both the passenger and the driver sides. The driver side requires the arm to wipe a

larger area compared to the passenger side. This requirement is clearly seen in the design of

the wiper motor assembly and the also in the arm and blade assembly. This requirement is

being taken care of in the wiper motor assembly with the help of a four bar mechanism which

is being driven with the help of the motor. The arm and blade assembly is also designed by

keeping this requirement in mind. Thus the arm for the driver side is shorter and the blade is

longer. But for the passenger side it’s the other way around. The arm is longer and the blade is

shorter.

The assembly of the arm and blade for both the driver side and the passenger side is being

done separately. The quality issues regarding with the arm and blade assembly is being taken

care of very strictly here. The force which the arm exerts on the windshield is monitored

carefully. And those pieces not conforming to the standards are being rejected. Presently the

assembly is done only for the domestic purposes or the Right hand drive. The maximum

yearly output for the line is 750000 pc/ year when the line runs for three shifts but presently

the line operates for two shifts.

Reservoir Assembly Line

The reservoir assembly line is constituted for the assembly of the reservoir tank along with the

pump for the automobiles. This tank is used for the water storage and the sprinkling purposes.

The assembly mainly consists of a reservoir tank and a pump along with its hoses. There are

three basic models which are being assembled here in this line. They are one way pump for



the domestic purposes and two way pump models for both domestic and export purposes. The

main customer for the reservoir assembly is Hyundai Motors India.

The major difference between the one way pump and two way pump is the number of

openings it has. The one way has only one opening and so it is connected to only one hose but

two way on the other hand has two opening so it is connected to two hoses. The cycle time for

two way pump is slightly higher than the one way pump assembly. The assembly is tested in

the pressure testing apparatus for the pressure and the leakage if any. A very high standard is

maintained. The maximum output of the line is 750000 pc/ year when the line works for three

shifts but presently the line operates for two shifts.

The reservoir assembly and the arm and blade assembly lines are placed together in the same

allotted space. This space includes the space for the raw material, the operator and the

assembly stations and the finished goods. All these are placed together in the same space.

In this report an effort has been made to study the working of these two lines and to rearrange

the layout after identifying the flaws in the existing layout. This was done after a systematic

study of the layout, conducting time study and applying the principles of industrial

engineering for suggesting a more ergonomic layout.

The rest of the report is being organised as follows. Initially the work content of the arm and

blade line is being carefully studied and then a time study is being conducted and based on the

results of time study and the current layout is being analysed and finally a new layout is being

suggested.



ARM AND BLADE ASSEMBLY LINE

The work content for the arm and blade assembly line

1. Take the arm.

2. Fix the arm into the fixtures

3. Lock the arm tightly.

4. Pull the arm gently and place over the loadcell plate.

5. If the component is ok the machine shows a green colour.

6. Unload the part and do the visual control of the arm crack.

7. Take the blade and fix with the arm

8. While looking the blade the locking sound should be heard

9. Do the visual control of the blade damage.

The above given steps are the work content for the assembly of the arm and blade. The arm

load of the arm is very important for the wiper to work effectively. The other observations to

be done while checking the arm is that there should not be any kind of the visual

imperfections in the arm, the arm should be having the locking mechanism, the arm should

have the proper alignment of the spring which gives it the required load.

The time study was conducted for the arm and blade assembly line. The results of which is

being tabulated in the appendix.

From the results of the time study it can be seen that the previous time study records did not

consider the walking time in the time study. The walking time becomes an important factor

since the operator has to walk a distance of about 1.2 m after completing each cycle or after

each assembly. This takes roughly about 2 seconds on an average. Without considering this

factor the cycle time was being calculated and the time obtained was about 30 seconds. The

results of the time study conducted states that the cycle time including the walking time come

out to be about 30. 2 seconds. Thus a correction seems to be made in the actual cycle time

calculations.

Based on the above findings the layout was tried to be modified. The need for the

modification of layout was recognised since the space currently used for the layout had to be

used for another purpose and the layout had to be shifted. So taking this opportunity the



present layout was analysed and the shortcoming were tried to be eliminated in the new

layout that was being designed.

In the present layout, the machines are being placed in the space given by 11.5x3.4 m. Within

this space we have two assembly lines functioning, one each for the arm and blade and other

for the reservoir assembly. The space allocated for the reservoir assembly is given by 6.8x3.4

m and for arm and blade assembly the space allocated is 4.7x3.4m.

The arm and blade assembly line has the following parts to be allocated within the assembly

line. The table below gives the list of parts and their space requirements.

S No Part Space Requirement(m)

1 Assembly Station 1.05x0.85

2 Arm feeder 1x0.55

3 Blade feeder 0.65x0.42

4 Raw material pallet (arm) 1.1x1.1

5 Raw material pallet (blade) 1.1x1.1

6 Incoming rejection pallet 1.1x1.1

7 FG trolley 1.1x1.2

8 FG trolley(empty) 1.1x1.2

9 Pentagon board 1x1

10 Display board 1.26x0.64

All the above parts should be arranged in the layout. The present layout the total space

available is 15.98 m2

and the total space utilized is 8.98 m2

. Thus the total space utilization is

just 56.22 %. Thus it can be inferred that just above 50% of the space is being utilized for the

layout. This is a very low utilization percentage. The main disadvantages of having very low

utilization are that a large amount of space will be wasted. This leads to additional cost. Since

the lost space cannot be utilised for any other purposes. Therefore the additional space has to

be procured if any further modifications as to be done. Moreover when a large amount of

space is being left idle the discipline in the line is also very difficult to maintain. Since a large

space is seen to left free the operators might have their own notion about what to do with the

space. This might lead to the storage of unnecessary items in the line. More over when large

space is available the operators tend to keep on producing till the space is being filled. This

may again lead to the problem of over production and also in carrying a large amount of

finished goods inventory which again adds up to the cost.



In the present layout the finished goods parts box is kept behind the operator. This requires

the operator to turn 180º after every part is being assembled. Thus it requires the operator to

turn 180º once in about every 35 seconds. So if the operator has to operate in an 8 hour shift

the number of time the operator has to turn is very high. This will lead to health issues for the

operator and can also affect the quality and the productivity of the line. Thus this should be

avoided while designing the layout. The operator should not be made to turn more than 90º in

one cycle.

The distance between the finished goods trolley and the operator is about a meter. The time

taken by the operator for moving the distance is about 4 seconds. This time is also a loss of

productivity. If the FG trolley was place closer this time can be reduced. In every cycle if 4

seconds is lost then for a production of 500 parts a total of 2000 seconds is lost. This means

more than half hour production time is lost.



Figure 1: Existing layout for arm and blade and reservoir assembly line.


National Institute of technology, Calicut

Figure2: Arm and Blade Assembly station

Page 29



RESERVOIR ASSEMBLY LINE

The work content for the Reservoir Assembly Line.

1. Take the hose from the rack.

2. Dip the hose assembly into the soap dispenser.

3. Take the motor from the rack.

4. Insert the nozzle presence hose assembly with the rear side of the motor assembly.

5. Take the tank from the carton box.

6. Palace the tank in the fixture.

7. Visual check and snapping and put green marks.

8. Insert the motor assembly into the tank.

The work content here does not specify the testing of the assembly and placing the finished

goods into the FG boxes. The testing of the assembly consists of various tests. The most

important of them being the leakage testing. The leakage of the tank can be a very serious

issue if not taken care of. Therefore the tank is being tested for leakage. This is being done by

connecting the hoses to the testing device and filling the air in the chamber at a specified

pressure and observing if the pressure goes down. If it reduces then the tank is bveing

rejected.

The time study for the assembly operation was conducted as the initial step. The results

obtained were compared with the existing results. It was observed that the time study

conducted previously was a highly conservative and was far from the actual scenario. The

time study results concluded that the actual time taken for completion of one cycle was 30.62

seconds where as the actual case scenario was much above at a value of 48.65 seconds. This

data is highly misleading and cannot be trusted for any further calculations. Depending on

this the number of operators has been assigned as two. The major flaw in this time study is

that the time for the inspection of the assembly was not taken into account. This time is

actually a major part in the cycle time. This time becomes very important especially when the

assembly of two way pump is being done. This flaw was rectified and the new time study

results yielded that the cycle time is about 48.65 seconds.



The reservoir assembly line has the following parts to be allocated within the assembly line.

The table below gives the list of parts and their space requirements.

Table 2: Assembly line Parts

S No Part Space Requirement(m)

1 Assembly Station 10 1.4x0.85

2 Assembly Station 20 1x0.8

3 Assembly Station 30 0.8x0.8

4 RM Pallet 1.1x1.1

5 Incoming rejection pallet 1.1x1.1

6 FG pallet 1.1x1.1

7 FG pallet(empty) 1.1x1.1

8 Pentagon board 1x1

9 Display board 1.26x0.64

10 Tank Feeder 1.72x0.8

In the present layout for the reservoir assembly the space available is 6.8x3.4 m, or the total

area available is 23.12 m2. This space also consists of a pillar of dimension 0.5x0.5m in

dimension. Therefore the total area available to us is 22.87m2. The space used by the different

entities is just 10.65m2. The total space utilization is just 46.57%, which is even lesser than

the arm and blade assembly line. Thus the total space available for both of the layout together

is 11.5x3.4 m. The combined space utilization is about 50.54%. This shows that just the half

of the space is being utilized. This again is not a very good sign.

For the reservoir assembly layout also the operator has to turn 180º after assembling every

piece. Thus again the operator will be fatigued very fast. For a cycle time of 48 seconds, ie ,

the operator has to turn once in a time gap lesser than a minute.

In the reservoir assembly line there a large number of pallets. This will again give rise to

issues relating to the line discipline. The operators will keep on producing till the boxes get

filled without considering the actual production schedule. Thus again there might be a large

amount of inventory being pilling up in the line, which again is an extra cost.

Originally this assembly line was planned for only one operator, but since for one operator

will have to walk a distance of about 3m for every cycle the number of operator had to be



increased to two. Thus an additional operator is required for this layout. But actually if the

layout was managed properly this could have been reduced to one and again the extra

operator can be used somewhere else.

Thus we can see that there is plenty of room available for the improvement in the present

layout. In the next session we will be discussing the new layout and merits of this layout

when compared to the present layout.



Figure 3: Reservoir workstation 1



Figure 4: Reservoir Workstation 2



General factors to be considered in a layout design

Flow of materials

The flow of materials is very important in any layout, and it becomes all the more important

when it is an assembly line. Whenever the layout is being designed it should be designed in

such a way that the flow of materials is not being hindered. There are basically two types of

flow in any layout, namely the internal flow and the external flow. The internal flow consists

of the flow within the layout or how the materials move from one machine to another. Since

it is an assembly line layout the flow of material is very important. The layout should

facilitate the flow of the material. The external flow means the flow external to the layout, ie,

the flow of the raw materials and the finished goods. The raw material pallet should be kept

in such a way that they are near the aisles for easy transportation and also the finished goods

pallets or trolleys should also be kept near the aisles for the easy movement.

Distance travelled

The distance travelled is one of the performance criteria whenever the layouts are being

designed. The distance travelled should be tried to reduce at any cost. The distance travelled

is always considered to be the additional cost. The movement requires time and the time

spent in travelling is the time lost. But we cannot eliminate the moment completely since it is

an ultimate necessity. Even though the movement is a non value addition process this is

unavoidable. Thus all the care should be taken to reduce the movement as much as possible.

This can be done by keeping those machines closer which have larger flow between them

closer. In case of sub-assemblies they should be kept close to the main assembly lines.

Material movement

The material movement mostly refers to the external movement of the materials. This

becomes important when the complete layout has to be designed. The material movement

from the raw materials warehouse to the assembly lines and finally to the finished goods area.

The layout should be so designed that this flow is facilitated and flow is continuous without

any one point having a very large traffic. This will lead to the smooth material flow and easy

handing of the inventories.



Operator’s convenience

Operator’s convenience should also be taken into consideration while designing a layout.

This is also very important since the operator is the one who is in the shop and who has to do

the operation. Therefore it’s the duty of the layout designer to take care of the ergonomic

factors while designing a layout. Most of the shop floor operations are inherently tiring and

require a great deal of physical work. So the layout should be designed in such a way that the

operators effort is being reduced and he or she does not have to undergo high amount of

physical strain. The operator’s mental setup also comes into the action. For example in

western countries the operators are used to work in the counter clockwise direction but in

eastern countries it’s the other way around. Therefore the work place design as well as the

layout design should be done keeping these factors in mind.

Space available

Space is always a constraint in the design of the layout in any case. The challenge is to come

up with the best layout within the given space. The space is not always available as a luxury

since the space comes only at a price. Moreover the available space should be used wisely

since the space wasted is the money wasted. It can be seems that by closely analysing the

space utilization in almost of the existing layout and by careful rearrangement more space can

be found out.

Country Laws and Norms

The country laws and norms should also be kept in mind before the layout is being designed.

In many countries it has its own standards for the minimum space that should be there for the

operator to operate in the machine. This should be followed strictly. Depending upon these

conditions the layout should be re-designed or modified. Many times these factors tend to be

neglected which may give rise to the legal issues. These laws clearly state all the points

regarding the minimum space required, the maximum working hours, the wages and its

calculations and the overtime wages too. For example in India the minimum space between

any two operators should be 1.2m.



Types of operations

The type of operation is another major factor while designing the layout. A layout engineer

should have a very good idea about the type of the operation and the difficulties faced by the

operator. He should also be well aware of the issues arising while the operation is going on.

The type of operation like those requiring high precision like that of a watch manufacturing

will have a different set of issues regarding the layout design than that of a job shop or a

foundry shop. Thus when layout designer designs the layout he should be well acquainted

with the operations himself. The best way to be aware of the issues are by going to the floor

and spending time over there, observing the operations, noting down the factors affecting the

operations, doing a FUSA study, talking to the operators, etc.

Environmental Conditions

The environmental condition in which the operator has to operate is also an important factor

that should be considered. For example in a watch factory the entire facility is arir

conditioned and the humidity is also kept under control. This is important since the part are

too small and the accuracy is highly required. But when it comes toa foundry shop the

especially the conditions prevailing near the furnace is completely different. Thus in a watch

factory if the machines can be located close by then in a foundry shop there should be enough

space between the machines for giving enough space for the operator to move and to

reposition himself. Thus while designing the layout the exact conditions prevailing should be

known and the spacing between the machines and facilities should be given taking all these

factors into consideration.

Type of the layout followed

The type of the layout followed comes from the manufacturing philosophy followed by the

firm. The firm can adopt a line layout, or process layout. The firm can also adopt a cellular

layout. So as a layout designer these information should be considered and the layouts should

be designed. The layout consideration for a product layout will not be same for the process

layout. If the product demand is not large enough to justify a dedicated line for the product

then there is no point in designing a product layout and arguing this might reduce the other

cost like material handling cost. Thus the layout designer should actually consider the



different parts that are being manufacture and their demand and how it can be grouped or the

layout can be designed to achieve an overall profitability.

Size of the finished goods

The size of the finished goods should also be considered. In assembly operations usually the

size of the produce goes on increasing with every operation. Thus this size also has to be

considered. For example in a automobile assembly line the size of the layout restricts the

number of the automobiles in the line but when we consider the layout of a small motor

assembly the size of the product does not increase to a large extent at each assembly station.

If the size of the finished goods is large enough that it cannot be moved by hands then the

layout should also have the space for the manoeuvring of the products also. Therefore the

layout designer should consider this factor also.

The above given factors are just a general view of the real life scenario. In every shop floor

there might be conditions that are unique to that shop. For a layout designer to design a good

layout he has to spent time in the shop floor and try to get himself familiarized with the

conditions existing there and the firms production philosophies.

Depending upon the factors that has been discussed above a new layout has been proposed.

The new layout consists of the two lines that have been discussed above. The figures of the

layout are being given below.



Figure 5: New layout for reservoir assembly



Figure 6: New layout for arm and blade assembly



Figure 7: New layout for arm and blade assembly and reservoir assembly



Discussion on the proposed layout

The space required for the proposed layout is a total of 6.9x3.43m, in that a total of

3.45x3.43m is allotted for arm and blade assembly and 3.45x3.43m for the reservoir

assembly too. The entire available space is being equally divided to accommodate both the

line. The total space utilization for the arm and blade assembly line is 61.82% and that fro the

reservoir line is 79.8%, which is larger than the original space utilization. The total combined

space utilization of the two lines together is given by 70.8% which is at least 20% more than

the original layout. The proposed layout actually uses the available space in a more efficient

way. This increase has been achieved without compromising on the any other important

factors.

The next advantage of the proposed layout is that operator movement has been reduced in

both lines. In the proposed layout operator in the arm and blade assembly line has to move

only 1.30m compared to the 2 m in the existing layout. This saves about 1 second in every

cycle which adds up to the productive time for the operator. Where as in the reservoir

assembly line the operator has to move less than 0.5m to reach the finished goods pallet and

place the assembly. This again reduces the travelling time for the operator when compared to

the previous layout and thus the time saved adds up to the productive time of the operator.

The operator in the proposed layout will have to turn only 90º to place the finished good into

the racks when compared to the 180º in the previous layout. This reduces the operator fatigue

since the operator does not have to turn completely every time. More over the turning time

can also be saved and this also adds up to the operator productivity time. Moreover if the

operator is less tired the output of the operator also increases and there will be less number of

quality rejections.

The new proposed layout has higher space utilization. This was achieved by reducing the

number of finished goods trolleys and pallets for both the line. This has another advantage

also. The other advantage is that the operator will not have the tendency to over produce.

Since there is only limited space for the finished goods to be stored the operator will produce

enough for storing in the space provided. This also leads to lesser inventory in the line. Since

the inventory is less in the line it becomes easier to track the process and to keep it under

check. The number of pieces to be assembled will be known by the production department



and so they can send the required number of trolleys. This will reduce the decision made by

the operators in the line leading to a less chaotic situation.

The material movement in the proposed layout is well taken care off. The raw materials are

kept near the main aisles. Thus the material loaders can easily manoeuvre the raw materials

through eh aisle and can load and unload the raw materials. When the finished goods is being

considered the finished goods is being place near the finished goods area. The main

advantage is that the finished goods do not have to move any considerable distance to reach

the storage area. A slight push will be enough. Thus again the cost of material handling will

be reduced in the proposed layout.

Therefore we can see that the proposed layout has some obvious advantages over the existing

layout.



CONCLUSION

The existing layout for the arm and blade assembly and the reservoir assembly was studied

completely. The study revealed that there were some flaws in the existing layout. The flaws

like less space utilization, operator fatigue, long walking distances etc was identified. To have

a concrete idea about the time taken for the different operations and the time lost in moving

about by the operator due to the long distances the time study was conducted. The time study

revealed that the cycle time calculated for the both layout was not correct and the new time

study results were taken as the basis for further study.

Keeping the different factors affecting the layout design into consideration a new layout was

proposed and it was observed that the space utilization could have been improved and the

entire layout was rearranged into a smaller space. This material movement was facilitated, the

operator fatigue was reduced and the operator movement was also reduced. The new layout

also helped in reducing the number of operator from two to one in the reservoir line. Thus the

results of the study should be implemented and the issues in the real life should be analysed

for further fine tuning of the system.



APPENDIX



ARM AND BLADE ASSEMBLY LINE S

No Work Instruction

Trial

1

Trial

2

Trial

3

Trial

4

Trial

5

Trial

6 Trial 7

Trial

8 Min Max Avg

1 Take the arm from the cover total 1.73 2.34 3.46 2.95 2.44 4.08 2.55 2.65

1.73 4.08 2.775 actual 1.73 2.34 3.46 2.95 2.44 4.08 2.55 2.65

2 Ckeck the visual control points total 3.46 5.81 5.61 7.03 5.61 9.38 4.48 5.2

1.73 5.3 3.0475 actual 1.73 3.47 2.15 4.08 3.17 5.3 1.93 2.55

3 Place the arm in the fixture total 5.61 8.26 8.36 9.58 7.95 11.22 7.34 8.16

1.84 2.96 2.4875 actual 2.15 2.45 2.75 2.55 2.34 1.84 2.86 2.96

4 Ckech the load and unload the arm from the

fixture

total 7.85 12.55 11.32 16.72 11.42 12.95 9.18 12.54 1.73 7.14 3.50625

actual 2.24 4.29 2.96 7.14 3.47 1.73 1.84 4.38

5 Take the blade from the bin total 12.24 15.5 14.79 18.66 13.66 16.11 11.22 15.09

1.94 4.39 2.8425 actual 4.39 2.95 3.47 1.94 2.24 3.16 2.04 2.55

6 Hook in the arm total 15.5 17.44 19.07 20.29 15.4 19.07 13.05 16.72

1.63 4.28 2.40875 actual 3.26 1.94 4.28 1.63 1.74 2.96 1.83 1.63

7 Mark the necessary points total 16.56 18.3 20.4 21.78 16.07 20.52 14.09 17.62

0.67 1.49 1.1 actual 1.06 0.86 1.33 1.49 0.67 1.45 1.04 0.9

8 Take the cove rand pack the assembly total 24.48 22.64 23.56 28.35 21.11 23.15 19.17 22.95

2.63 7.92 5.00875 actual 7.92 4.34 3.16 6.57 5.04 2.63 5.08 5.33

9 Move the assembly to the trolley total 26.74 26.41 26.22 29.58 22.64 24.07 19.89 24.78

0.72 3.77 1.865 actual 2.26 3.77 2.66 1.23 1.53 0.92 0.72 1.83

10 Come back to the initial point total 28.32 28.45 29.88 32.35 23.76 25.8 21.01 26.62

1.12 3.66 1.9825 actual 1.58 2.04 3.66 2.77 1.12 1.73 1.12 1.84

considering losses 0.9

without considering the walking time

total time 27.02375

cycle time (sec) 30.026389

considering losses

0.9

total time

25.0413

cycle time (sec)

27.8236



RESERVIOR ASSEMBLY LINE Work involved Trial 1 Trial 2 Trial 3 Trial 4 Trial 5 Trial 6 Trial 7 Min Max Average

Taking the Rvr tank from the bin 2.14 2.24 3.26 1.42 2.55 1.42 1.93 1.42 3.26 2.137143

Marking the visual control points 0.92 2.65 1.33 1.02 0.62 1.43 0.72 0.62 2.65 1.241429

Take the motor from the bin 1.73 1.32 4.99 4.19 5.1 1.53 2.75 1.32 5.1 3.087143

Picking up of the hoses 1.16 1.63 2.55 1.63 6.63 0.82 2.75 0.82 6.63 2.452857

Dipping the hose in the oil bath and insertion of motor 2.43 1.67 1.53 1.02 2.55 1.22 1.02 1.02 2.55 1.634286

fixing the motor and hoses on the tank 7.53 4.35 6.23 6.32 6.43 5.61 5.71 4.35 7.53 6.025714

Connecting the hoses 5.3 4.56 3.46 4.69 2.85 4.48 5.81 2.85 5.81 4.45

starting the machine 17.73 21.13 16.12 13.97 18.26 13.88 13.46 13.46 21.13 16.36429

Final inspection and the markings 12.95 7.65 8.67 9.79 9.07 9.48 9.18 7.65 12.95 9.541429

Moving the material to FG area 1.33 2.14 1.22 2.34 1.94 1.02 2.04 1.02 2.34 1.718571

total time 48.65286

Cycle Time= 48.65



Documents

A Report of Industrial Training at Bosch