‘Unsinkable’ ,‘Most luxurious’ …….

The Mighty British Empire – set sail to conquer the World, but …..

Shailendra Singh GM,Materials Management Division, Maruti Suzuki India Ltd

2000 2005 2009 2013

700

750

800

850

900

2004 2005 2006 2007 2008 2009 2010 2011 2012

Online Services

Customer satifaction - Online banking

Customer satifaction - E-Retailing

700

750

800

850

2004 2005 2006 2007 2008 2009 2010 2011 2012

Automobile Industry

CSI - Auto. Industries APEAL - Auto. Industries

0

200

400

600

800

1000

2004 2005 2006 2007 2008 2009 2010 2011 2012

Food Industry

ISO 9000 certified food industries

0

200

400

600

800

1000

2004 2005 2006 2007 2008 2009 2010

Telecommunication

Improvements in Call drop rate - Telecom sector

Voice quality - Telecom sector

All values indexed; Source: CSI & APEAL – JD Power & Associates; Telecom sector – TRAI ; Online Services – www.foresee.com dtd 12-May-13, Food Industry – Research paper on Processed Food Quality control in Japan by Yoshihisa Onishi, Ph.D (Extrapolated)

• Output < Input • Less efficient • Temporary

improvements

• Output = Input • Highly efficient • Permanent

improvements

Western Approach EasternApproach

Quality at Source Filteration

Suppliers Raw Material (Metal, Plastics. Etc..)

Inputs Tier 2 Components

Process Tier 1 Components

Output OEM

CustomersDealers

7~9 %

3~ 5%

6 ~8 %

100 %

91%

84%

79%

Quality

Losses

Throughput

IMPACT

COST

Kaizen

Process Improvements

Pika Pika system for model specific component selection

Electronic Torquing

Checks

Visual Control for similar looking parts

Auto-Torque regulator to prevent over tightening

Hand Movement coordination Bolt tightening

training

Statistical Process Quality Control for Critical processes

Panel Checker for body accuracy

9

8

11

4 11

5 11

6 11

7

12

1 12

2

12

3

12

4

12

5

12

6

12

7

11

3

11

0 11

1

11

2 10

3

10

2

10

4

10

1 6

1

60

DATU

M

9

4

9

3

9

6

9

5

9

7

9

9

10

0 10

5

10

6

10

7

10

8

10

9

5

9

5

8

5

6

5

7

5

5

5

4

11

9

11

8 12

0

15

Call from station

Call prompted & display on ANDON board

Call registered in the shop ANDON analysis call / pause

Any stoppage on line effects disturbs the natural rhythm of

operator

Banyan tree Spill the beans

PMS ( Production Management System)

19

Su

sta

ina

bilit

y

Involvement

Ow

ners

hip

Integration

PRODUCTION MANAGEMENT SYSTEM (PMS)

A Unified Connecting

Thread

Japanese fundamentals

Intellect of Indians

+

Overall Guidelines from COO

Percolation down the level

Idea generation – PMS Brainstorming

sessions

Idea generation – PMS Brainstorming

sessions

Idea presentation Idea evaluation

Process Quality,

Incoming Parts

Quality

Quality by

Material

Management

0% 1% 2% 3% 4% 5% 6%

% of rejections

% of Obsolescence

% of delayed deliveries

Impact of Material management on Quality

IMPACT

COST

R&D

Kaizen

Automation Innovations

Process Improvements

Overcoming Human Limitations

Improving Parts traceability

Verticalisation

Idea Implementation Cross Sharing Company wide

Recognition

Delivery Review of Suppliers

IMPACT

COST

People Development

Systems Improvement

Innovations

Engineering in MX

People Focus

Pulley systems to minimize human effort 30% reduction in manual handling

Pulley systems to minimize human effort 30% reduction in manual handling

Direct from Truck Telescopic racks

for heavy bin unloading

-Elimination of Handling rejections

Ergonomic friendly racks & trolleys

Racks on Wheels to avoid multiple handling of

material , resulting in improved throughput rate

Continuous transfer

upto 9 ft without electric/pneumatic power

Ver 1.0 : PLC based

Ver 2.0 : Energy free

Ver 4.0 : Energy reduced

Ver 5.0 : Bank of Energy free Vending Machines Oct-12

Nov-12

Nov-12

Nov-12 Dec-12

Ver 3.0 : Horizontal

Parts Dispensers

ONLY the RIGHT material and ONLY the RIGHT

Quantity

Tak-a-Tak systems for continuous transfer of material, utilising vertical space, with ‘0’

manual intervention

Hopper systems to ensure Zero Mix-up of fasteners

Inventory reduction by Rs 1.5 cr

Automated Storage & Retrieval System (ASRS) for Engine transfer &

storage “Zero Handling defects”

Automatic Guided Vehicles (AGV)

for Door transfer “Zero Handling Dents”

Direct On Line (DOL) system for material

handling

In-house designed & developed Automated Tire

handling & storage

Laser-engraved data matrix on crankshaft having information on: (1) date & shift of mfg, (2) grading of pins & journals (3) component number, (4) shop reference no.

Engine data is written on to RFID for tracking

0

20

40

60

80

100

120

2009-10 2010-11 2011-12 2012-13 2013-14 Apr'13

Inhouse Warranty

0

20

40

60

80

100

120

2010-11 2011-12 2012-13 2013-14

Inhouse Rejection

0.0

20.0

40.0

60.0

80.0

100.0

120.0

08-09 09-10 10-11 11-12 12-13

GCA index

60

65

70

75

80

85

90

95

2008-09 2009-10 2010-11 2011-12 2012-13

Direct Pass

Swift CNBC TV-18 Compact

Car of the Year

NDTV CNB Premium

Hatch back of the year

IQS & APEAL Swift ,Dzire, SX4 and

Estilo among top 3 in

respective categories

Certifications ISO 9001:2008

ISO 14001