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rockford company
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INDEX INTRODUCTION
CURRENT SITUATION OF COMPANY
MISSION, VISSION & STRATEGY
SWOT ANALYSIS
STRATEGIC + BUSINESS – FRUGAL INNOVATION & ENGINEERING
CIM
ISHIKAWA DIAGRAMS
ISO
GT & BP REENGINEERING
THEORY OF CONSTRAINTS & SMED
TPM, JIT, MRP II & SMED
IMPLEMENTATION OF TQM
RISK ANALYSIS
CONCLUSIONS
INTRODUCTION
The enterprise Rockford Motor System was created in 1970,
Initially employing 80 workers. The aim of this company was
produced driving axles for Rambler.
In 1980, the company increased the number of employees to
135 and diversified the enterprise's production by camshafts
that were being made for Chevrolet, Ford and Rambler. Six
years after, in 1986 the employment structures up to 250
workers.
STRATEGY + BUSINESS - FRUGAL IMPACT OF FRUGAL GLOBALLY - Even global companies
uninterested in the growth offered by the world’s lowest-income consumers will have to pay attention to the lessons of frugal engineering: Products developed with this approach are beginning to compete with goods sold in developed countries, a trend that’s likely to continue.
Deere & Company, for example, designed and sold small, lower-powered tractors in the Indian market, but didn’t begin selling such models in the U.S. until an Indian company, Mahindra & Mahindra Ltd., beat them to it. Mahindra & Mahindra has proven an able competitor to Deere in larger tractors as well.
General Electric (GE), on the other hand, has been more proactive; for example, it has sold a revolutionary new low-cost handheld ultrasound scanner in developed markets by incorporating frugal engineering lessons learned in its Indian medical research and development lab.
A low-cost GE electrocardiogram machine, developed at the same Indian lab for the local markets, is now being sold in the United States and Europe as well.
Meeting all these challenges will require a change in corporate culture. Some companies will be up to it; others companies will not. A successful approach to frugal engineering involves new ways of thinking about customers, innovation, and organization.
Proposal & Suggestion for Rockford Motor Systems
Our purpose was to describe about Frugal and Benefits of
implementation was that even during crisis or recession when
people lose their buying powers on any kind products including
automobile, Home appliances manufacturing market etc.
Companies can focus on the basics needs or components of the
product can meet their customer expectations at lower price.
Through this approach companies can do innovation about new
aspects or can make a new revolution in market and can compete
with their rivals very effectively. Rockford motor systems should
implement similar approach and can come up with an idea of
economical car which people can buy at reasonable price and feel
the association with brand.
Marketing strategy Gaining more orders by expanding the marketing strategy in the
current market.
Taking over control low buying power customers by implementing Frugal.
Provide festive offers on new innovative products.
Promotion of brand between middle class of people through auto events and by introducing less expensive cars.
Continuous improvement in manufacturing and management sector
Different attention paying policies for employees and clients
Internal Strategy
Implement quality management system in one year
Implementation of new management system in a company during the year
Realization of obligatory and efficiency employment program
Applying lean manufacturing policy step by step in next 3 years
Establishing a database of information about products, materials, machines and employees.
Purchasing of modern machines and replacing old ones
Reducing the employees
Assembling a new means of production in a line in next 2 years
Implementation of and promote frugal innovation and engineering in company.
THE MAIN MODEL USED FOR CONTINUOUS IMPROVEMENT
With continuous improvement management in enterprises a set of methods, tools and philosophies are regarding the changes which would have continuous character which could be identified by controlling the several processes. Due to the different kind of difficulties and problems ,which are conducting the enterprise to failures, Problems could be solved by applying these methods:
ISO standards,
Kaizen,
TPM,
SMED
TOC
JIT and GT.
Adopted Methods to effectiveness and
Decrease the level of problems
ISO-INTERNATIONAL ORGANIZATION FOR STANDERDS
There are 3 ISO standards
ISO 9000: 2000
ISO 9001: 2008
ISO 9004: 2000
The main objective of ISO 9000 standards are
To develop a common simplified standards to all
firms( small, medium and big entrepreneurship.
Giving more concentration on the documentation
of the organization than result.
Methods to improve effectiveness
RMC QUALITY PROCESS
• Achievement of this policy involves all members of the
company and departments, so everyone’s work is
affected by the adopted measures
• Standardization of process
• To obtain the maximum results
• Partnership, integrity, openness, fluent communication,
optimism and motivation for improvement are required
to achieve the mentioned goals
KAIZEN
Kaizen is a system of continuous improvement in quality, technology, processes, company culture, productivity, safety and leadership that involves every employee – from “top to bottom”.
The five main elements of kaizen
Management teamwork.
Increased labor responsibilities
Increased management morale.
Quality circles.
Management suggestions for labor improvement
ADOPTED KAIZEN, IMPOROVE THE
SYSTEM
Kaizen Reduces Waste in areas such as inventory, waiting times,
transportation, worker motion, employee skills, over production, excess
quality and in processes.
Kaizen Improves space utilization, product quality, use of capital,
communications, production capacity and employee retention
Kaizen provides immediate results. Instead of focusing on large, capital
intensive improvements, Kaizen focuses on creative investments that
continually solve large numbers of small problems
THEORY OF CONSTRAINTS & HOW TO
IDENTIFY Constraints are anything that prevents the organization from
making progress towards its goal.
The Theory of Constraints uses a process known as the Five
Focusing Steps to identify and eliminate constraints
IMPROVING THE EFFECTIVENESS BY TPM
TOTAL PRODUCTIVE MAINTENANCE(TPM)
TPM is a maintenance process developed for improving productivity by making processes more reliable and less wasteful.
No Breakdowns
No Small Stops or Slow Running
No Defects
No Accidents
Reduces equipment related waste including: downtime ,speed losses, defects, frequent adjustment, breakdowns.
Productivity is improved.
Quality is improved.
Employee ownership-ownership of equipment by operators through autonomous maintenance.
Employee confidence-”zero failure”, “Zero defect” and “ zero accident”.
Increased plant reliability.
TPM leads to high delivery performance and customer satisfaction.
An accurate and practical implementation of TPM increase
productivity within the total organization, where
IMPLEMENTATION OF ERP
5 steps for success full ERP Implementation
Strategic planning
Procedure Review
Data collection and clean-up
Training and testing
Go live and evaluation
IMPLEMENTATION - JUST IN TIME key elements for JIT implementation are:
Top management commitment
Development of a JIT policy manual
Development of a JIT procedure manual
Development and implement a continuous JIT training program for employees at all level
CONCLUSIONS Finally all tools related to maintenance or set up times of the
machines need to be taken into account that overall work will get more effective and efficient.
After evaluating implementation tools, a determination towards the most suitable approaches has been made.
To achieve specific goals and become competitive on the Asian market, the enterprise should start from improve a ISO 9000 documentation (helps in organization of documentation and indirectly in a communication within a company).
Information flow seems to be poor and impacts of that were considered as one of main problem. The next method to implement in company are TQM, GT and TPM (help in an organization of work, improve quality of products, replace an old type machines and in making a proper analysis).
To conclude the consideration which was discussed in the report about “Rockford Motor Systems” case it can be found that company should face many issues which are evaluated in the SWOT analysis in order to become lean and agile. That technique allows determining some points of the company policy (strategy) which should be continuously developed to constantly meet customers’ needs and demands.
In terms of chosen vision related to distribution of the components to a different Asian market the balanced scorecard was presented and described. This tool is very helpful to implement the vision by pointing operational management goals, which company wants to reach in nearest future. It concerns 4 perspectives: financial, customer, internal business process and the development sectors.
Frugal Engineering, although primarily embraced in developing and emerging economies, is quickly receiving global attention as a new form of disruptive innovation. Venture capital investments crucial to developing and scaling innovations have quadrupled since 2005, and bounced back strongly after the financial crisis. Taken together, these suggest that the future for innovation that is both frugal and sustainable could be very bright.