Sharing Best Practices

PMMAI – 25th July 2014Ahmedabad

What do we think, when we hear Indian Quality?

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Aesthetics

TechnologyLong Lasting

Performance

Reliability

Capability!!

Value addition?

Why should I do business with you?

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Current State to Future StatePresent Assessment 3-year Objective (2016)

Manufacturing Capacity1,500 machines per annum

Cost reduction & product innovation

Driven by FMI for self & suppliers

Standard operating process (SOP)Preparation, validation & implementation by FMI

Quality, Reliability & Aesthetic improvement FMI driven improvement initiativesInitiated DMAIC for improvements

Territories ServedIndia, SAARC, Middle East, Africa & USA

Manufacturing Capacity2,500 machines per annum

Cost reduction & product innovation

Self Initiatives from Strategic partnersVendors based adjacent/near to FMI

Standard operating process (SOP)Supplier driven SOP

Quality, Reliability & Aesthetic improvement Zero defect parts & improvement plans by suppliers

Additional Territories ServedEast Europe, Latin America, South East Asia

Improvements & Innovations initiated at FMI

Improvements & Innovations at Strategic partners with FMI

Process Improvement . . . . A Journey

Get Fast! . . .or Go Broke!

Process Improvement House

Organization Concerns

House Keeping not up to Expectations.

Poor Safety.

Gangways cramped with machines.

Material storage issues.

Stock Discrepancy and material damage issues.

Lack of Space.

Material stored directly on floor and at undefined areas.

Raw material yard also not organized.

Higher lead times.

Lack of ownerships.

Lack of Self initiating.

Slow rate of Productivity of machines.

Fire fighting in all areas.

Inward Quality issues.

Plug & Produce index not improving.

Organization Concerns

Goal – Operational Excellence

Path – Best Practices

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Modern Manufacturing Facility

Bring Customers closer – they are the best critics

Project: “PARIVARTAN” (Change)

Objective: To Make FMIPL a World Class Organization.

Launched On: 17th January 2012.

Sustained From : 31st December 2012.

Progress Update :

1S Initiated from 18th January till 31st March 2012.

2S Initiated from 18th April till 31st August 2012.

3S Launched on 2nd October 2012 & in practice.

4S FMIPL Company Standards Released on 31st Dec. 2012.

5S In practice and self Sustaining mode from 31st Dec. 2012.

5S

Parivartan - 5S Initiative Launched on 17th Jan 12

5S Parivartan

AFTERBEFORE

AFTERBEFORE

5S Parivartan

AFTERBEFORE

5S Parivartan

AFTERBEFORELife with “3S”

5S Parivartan

AFTERBEFORELife with “3S”

5S Parivartan

Material Handling - Improvements

AFTERBEFORE

Material Handling - Improvements

AFTERBEFORE

5S Parivartan

All fixtures and spanners arranged in master base O-80 to 250

AFTERBEFORE

5S Parivartan

Fabrication Kit Movement Trolley

AFTERBEFORE

5S Parivartan

Mega Cleaning

5S Parivartan

Mega Cleaning

5S Parivartan

Money Saved

Year

Lean Saving in INR Lacs

5S Recovery

in INR Lacs

Total Value in INR Lacs

2012 42.8 66.1 108.9

2013 46.8 58.7 105.5

2014 till Date

11.9 37.3 49.2

YearRed Tag

Items

Transferred Location

Scraped Parts

Obsolete Parts

2012 1227 180 510 183

2013 763 34 991 48

2014till Date

543 56 TBD 56

Space saved

5S Parivartan

•Lost Time Injury Incidence Rate

•G

oo

d

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Project: SIX SIGMA

Objective: To Make FMIPL a World Class Organization through process driven approach.

Launched On: 5th April 2013.

Progress Update SIX SIGMA:

First batch of Green Belt Training covered in 3 sessions for selected 26 Participants.

DMAIC Approach training as per Six Sigma methodology imparted.

8 Improvements projects identified and these are in Purchase / Assembly / Quality

with a aim of improvement in processes of Procurement / Quality / Manufacturing

& Productivity.

Subsequently based on the progress and implementation of these projects the Black

Belt Training would be imparted and thereafter the improvement projects would be

worked upon.

6σ

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Sr # Project Title Area Of ProjectData Reference

Period in months

Improvement Period in months

Expected Savings in INR Lacs

Actual Savings In in INR Lacs

1Reduce variation in Actual Lead time V/S Planned Lead time Mentioned in MRP for Bought out parts

Purchase / OEC / Stores Jan'12-Jun'13 Aug'13-Dec'13 44.0 53.7

2 Reduction in Inventory and no shortages in injection cell.

Purchase / OEC / Stores July'13-Aug'13 Jul'13 to Dec'13 5.8 1.9

3 Reduction in YRI hours in Injection cell. Injection Cell Jan'13-Jun'13 Jul'13 to Dec'13 5.2 1.8

4 Reduction in PDF of Injection cell Quality Jan'12-Jun'13 Jul'13 to Dec'13 3.2 3.0

5 Reduce electrical issues at machine run off start up Electrical Cell Jan'12-Jun'13 Jul'13 to Dec'13 9.9 1.3

Final Savings 68.0 61.7

Project Savings Expected V/s Actual Savings Achieved

6σ

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Value Engineering Project

MT / Nova 110 / Hydron100 = 94 Machines / Q3+Q4--2014.

MT / Nova / Hydron 150 = 135 Machines / Q3+Q4--2014.

Total Savings / Year = 229 * 8560 = Rs. 19.6 Lacs

VE

• For MT 150 Gates & Guarding – Value Engineering of Raw material, variety

reduction, Assembly Time Reduction Leading to cost saving.

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Project : TPM

Objective: To Make FMIPL a World Class Organization through process driven approach.

Launched On: 5th April 2013.

Progress Update TPM:

First batch of TPM Training covered in 2 sessions for selected 15 Participants.

The Team comprises of Cell Supervisor/Machine Operator/Mechanical & Electrical Fitter and maintenance manager.

3 Machines and 1 Utility machine selected for the first prototype approach.

Changed the daily method of logging of stoppages on these machines and revised the breakdown maintenance logs.

Initiated the red tagging of the machine and the as per the training of 16 types of losses the tags affixed by the team.

TPM

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Quality

ISO 9001:2008 ISO 14001:2004

Adhering to World Class Quality Standards

Export House StatusServing over 40 Countries across the World including USA

Accreditations

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Where are we?

We are not meeting our commitments to Customers

We need...

deep thinkingcreativity

determinationand resolve…

To go from…

VALUE CRISIS to VALUE CREATION

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Make it happen!

We are all an integral part of the journey!

Our Role, My Role?

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WE CAN, WE WILL

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Questions?

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Thank You

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