“Resource Efficiency Through Operational Improvement”€¦ · BRAND LEADERSHIP OPERATIONAL...

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7/12/2018 1 “Resource Efficiency Through Operational Improvement” CII- GREENCO SUMMIT 2018 An Industrial Garden Township of 3000 acres in Mumbai, India ABOUT GODREJ 14 SBUs with Corporate Offices & Manufacturing Facilities Employee Welfare through Residential Facilities Employee Welfare through Company Schools Commitment to Society through Godrej Memorial Hospital Commitment to Sustainability through 1800 acres of Mangrove Plantation 118 YEARS OLD- EMPHASIS ON CUSTOMER CENTRICITY & OTHER STAKEHOLDERS NEEDS

Transcript of “Resource Efficiency Through Operational Improvement”€¦ · BRAND LEADERSHIP OPERATIONAL...

Page 1: “Resource Efficiency Through Operational Improvement”€¦ · BRAND LEADERSHIP OPERATIONAL EFFICIENCY LEADERSHIP DESIGN LEADERSHIP Channel Vitalization Supplier Capability Management

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“Resource Efficiency Through Operational Improvement”

CII- GREENCO SUMMIT 2018

An Industrial Garden Township of

3000 acres in Mumbai, India

ABOUT GODREJ

14 SBUs with Corporate Offices &

Manufacturing Facilities Employee Welfare through

Residential Facilities

Employee Welfare through

Company Schools

Commitment to Society through

Godrej Memorial Hospital

Commitment to Sustainability

through 1800 acres of Mangrove

Plantation

118 YEARS OLD- EMPHASIS ON CUSTOMER CENTRICITY & OTHER STAKEHOLDERS NEEDS

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One of the largest divisions of G&B

Market leader. Crossed Milestone of 2000 Cr revenue in 17-18

Heading towards 2500 Crs Business in 18-19 with a growth of over 20%

Unmatched reach. 16 Branches & over 700 Dealers

Supported by 7 manufacturing locations and over 100 major suppliers

ABOUT GODREJ INTERIO

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Vision : Godrej – The choice for home and workspace solutions

Mission : Enriching life by transforming home and work spaces

Integrity Trust To Serve

Respect Environment

OUR VALUES

OUR MISSION, VISION, VALUES…

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INTERIO

B2B

(60%)

Products

Desking

OPOS

Storage

Seating

Healthcare

Projects

Interiors

Laboratory

Marine Accommodation

Vending Services

Audio Video Solutions

B2C

(38%)

Products

Home Furniture

Home Storage

Mattress

Kitchen

Projects

U & US

Service

(2%)

AfterSales

Services

OVERVIEW OF OUR OFFERINGS3 STREAMS OF REVENUE

ABOUT OUR GREENCO CERTIFIED PLANTS

Shirwal plant(Relocated from Vikhroli, Mumbai in 2011)

Total Area – 24,420 SQM

Total Strength

• Management Staff : 119

• Total Workers: 298

Plant 13&14, Vikhroli

Total Area – 38,734 SQM

Total Strength• Management Staff : 183

• Total Workers: 1070

GREENCO PLATINUM RATED GREENCO GOLD RATED

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FOSTERING A CULTURE OF SUSTAINABILITY

National and International Green certifications

Green Buildings IGBC GOLD certified

showroom

IGBC Green Factory Platinum

Rating

Green Company Rating

7

2

GREENPRO

certified

products

Green Products

9

BIFMA Level

certified

products

78

GREENGUARD

certified

products

Plant Vikhroli Silver rating June 2014

Plant Shirwal Gold rating May 2015

Plant Vikhroli Gold rating March 2016

Plant Shirwal Platinum rating May 2016

Plant Chennai-Registered for GreenCo (Target-Platinum Rating)

Continual

improvement

beyond

Platinum

OUR GREENCO PLATINUM JOURNEY

Green

thinking

culture

Understanding the rating system Creating a

focused central task force Plant wise

GREENCO parameter champions for EE, RE, Water, WM, MCR

Capacity/

capability

enhancement

through total

employee

involvement

(TEI)

Focused

improvements to

achieve and

surpass

stretched targets

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Resource efficiency through operational improvement

BRAND

LEADERSHIP

OPERATIONAL

EFFICIENCY

LEADERSHIP

DESIGN

LEADERSHIPChannel

Vitalization

Supplier

Capability

Management

STRATEGIC DIRECTION – GODREJ INTERIO6 focus areas to achieve market leadership & profitable growth with innovations and sustainability as

the central focus

Employee

Competency

Development

INNOVATION

&SUSTAINABILITY Green Certified

Products-

BIFMA Level,

GreenPro

30% revenue from

Good and Green

product

Yield Improvement

Energy Efficiency

Water Conservation

Waste Management

Design for Environment, LCA

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PROCESS OVERVIEW AT SHIRWAL

Raw materialWood, Steel

Wood workingCutting, edge banding,

routing, drilling

Paint shopPTL, Powder coating

Press shopNotching, punching,bending

laminationImpregnation, lamination

Packing Panel packing

Finishedgoods

Wood Steel

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LIST OF MATERIALS USED AT PLANT SHIRWAL

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BOARDS- PPB (80%)

BOARDS- MDF (7%)

BASE PAPER(1%)

LIPPING(1.5%)

STEEL (10%)

POWDER (0.5%)

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APPROACH ADOPTED FOR MATERIAL CONSERVATION

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Yield Improvement

Reduction in Design

Reduction in process rejection

Reuse in alternate products

Use of alternate size raw material

Re-Optimize

the product

Approach towards

enhancing yield

improvement

5 R Approach-

Reduce

Reuse

Recycle

Recover

Redesign

BEFORE AFTER

Design Waste Optimising BST from waste

Reutilization Design Waste for other products

Utilizing Design Waste for optimising - 2 BST are made from off-cuts of 1 Bed

YIELD IMPROVEMENT PROJECTS

Approach 1: Reduce design Waste

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• LVD Sheet Utilization increased from 74.1 % to 76.3%

Approach 1: Reduce design Waste

Net saving of metal is 1.2 Tons

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BeforeAfter

Lesser utilization Better utilization

by optimizing

side flanges

YIELD IMPROVEMENT PROJECTS

Approach 2:Reduce in-process rejection

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Major Steps to reduce Rejection:

• Change in resin formulation

(Modification in chemicals compositions)

• Change in impregnation process parameters (reduction in Resin content and Volatility of impregnated paper)

• Change in process parameters of Short cycle lamination m/c ( Pressure and temperature settings w.r.t Paper thickness and shade

Net saving of boards is 0.6 Lac Sq.ft.

YIELD IMPROVEMENT PROJECTS

6.18%

2.84%2.06% 2.07% 2.02% 1.95% 1.80%

1%

FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 Benchmark

Process rejection for Boards

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YIELD IMPROVEMENT PROJECTS

Approach 3: Reuse in alternate products

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Offcuts of Penta’s Battens Batten Frames

Off-cuts of 25mm thick work surface used in preparing batten frames

Area per block (in sq.mt.) 0.154

Blocks processed per year 62800

Net area for blocks per year (in sq.mt.) 9651

Area of board 8 x 6 (in sq.mt.) 4.46

No. of boards Saved 2162

Net saving of boards is 1Lac Sq.ft.

Material Conservation and Recylability

Panels

SCRAP UTILIZATION PROJECT

10,600 units manufactured in FY

17-18

Saving of 1.2 Lac Sq.Ft of particle boards

Approach 3: Reuse in alternate products

• Segment of 8 Multifunction

Furniture Products introduced in Chocolate Shade - 5 % board area utilized (FY -2017-18)

• Use of large Size offcuts as

Partition panels size in bed

introduced in 18mm thickness

in (FY 2018-19)

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Approach 4 : Use of alternate raw material

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Material consumption reduced by ordering non std. size LVD blanks for cable pole &modesty panel .

For Single cable pole Material consumption reduced from 2.62 kg to 1.96 kg (25 % reduction)

YIELD IMPROVEMENT PROJECTS

Net saving of metal is 3.95 Tons

Boards Required -350 Nos

Waste -31.23%

BEFORE AFTER

Boards Required -308 Nos

Waste -8.13%

Savings of 20.16sq. ft/Bed

Re-optimization: Reducing Panel Size by 2mm

Before Size :

Mattress Panel -1827 x 998

Mattress Half-998 x 912.5

Size Changed:

Mattress Panel -1825 x 998

Mattress Half-998 x 910

YIELD IMPROVEMENT PROJECTS

Approach 5 : Re-design the product

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Lot Size Boards

Req

Scrap % Boards

Req

Scrap %

1 Eudora King Bed 100 350 34.5% 308 8%

2 Choclate King Bed 100 350 34.5% 308 8%

3 Squadro King Bed 100 350 34.5% 308 8%

4 Terra King Bed 100 350 34.5% 308 8%

5 Viva King Bed 100 350 34.5% 308 8%

6 Eudora N15 King Bed 100 350 34.5% 308 8%

7 Pride King Bed 100 350 34.5% 308 8%

8 Adriana Single Bed 100 108 20.8% 100 9%

Before AfterSr. No Product

Optimization Changes

YIELD IMPROVEMENT PROJECTS

Approach 5 : Re-design the product

Saving of 20.16sq. ft/Bed and 4 Lac sq. ft/annum

Impact categories ( Impact per 1- SQM) For StallionFor Stallion

+

Impact

Reduction

Acidification Potential (AP) [kg SO2-Equiv.] 0.33 0.25 24.2%

Eutrophication Potential (EP) [kg Phosphate-Equiv.] 0.02 0.02 Negligible

Global Warming Potential (GWP 100 years) [kg

CO2-Equiv.]63.67 53.17 10.5%

Frame ht of Stallion + is reduced from

1219 mm to 1143 mm

Bottom tile Ht of Stallion + reduced from

452mm to 376 mm

Bottom

Tile Ht

reduced

Reduction of overall Panel height by 3” .

Frame ht of Stallion + is reduced from

1219 mm to 1143 mm

Bottom tile Ht of Stallion + reduced from

452mm to 376 mm

Frame

vertical Ht

reduced by

76 mm

Elimination of Aluminum

trims and caps

wherever possible

Option of extended tiles

given at 3 way junction

End trim ht reduced due to

reduction in panel ht

Elimination of 3 way trim

Offering of full panel length tile up to 3’0” width

facilitate better steel blank optimization

Approach 5 : Re-design the product through Life Cycle Assessment

YIELD IMPROVEMENT PROJECTS

Net saving of metal is 62.9 Tons

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AF

TE

RB

EF

OR

E

Decreased

number of

separators

from 4 to 2

Value

engineering

with packaging

only at corners

PACKAGING MATERIAL REDUCTION PROJECTS

Saving- 40 tons Saving- 16 tons Saving- 2.5 tons

Replacement of

plastic caps

with corrugated

paper at corners

Replacement of

thermocol with

honeycomb

Saving- 25 tons

STRATEGY METHODOLOGY

Technical council formation

Productivity Council

Quality Council

Safety Council

Total Employee Involvement

CII Cluster approach

Environment Day celebration

Poster / Slogan competition

Tool Box Meetings

Sustainable growth

PMO

Kaizen

CFT formations

Capacity Building Training - Internal, External

Optimizing Software

Communication

Visual & Interactive

One point Lesson

Standard Operating Procedures (SOP)

Do’s and Don'ts

Posters

STRATEGIES ADAPTED FOR AWARENESS CREATION AND EMPLOYEE INVOLVEMENT

Productivity Council

Daily Review Meeting

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Outcome of Productivity councilSr.No Result Area Kaizen Benefits In (Rs

lacs)

Energy

Saving(kwh)1 Productivity Change in process flow of fin 12 403200

2 Productivity To use router for grooving instead of grooving saw 2.43 37125

3 Cost To reuse damaged vacuum cups of BAZ machine. 15.3 --

4 Quality To reduce lipping consumption by eliminating agt side lipping of panel 0.3 10364 in mtr

5 Productivity To elminate the lipping constraint of panel less than 300mm on V-TAP machine 2.04 37380

6 Cost To reduce tooling cost by resharpening of router blades 25.8 --

7 Environment To improve optimisation of wooden boards 2.3 --

8 Productivity To improve the productivity of BAZ machine by process flow change in taper recta 5.76 37860

9 Productivity Use of aggreagate tool for drilling hinge holes 1.56 31200

10 Productivity Replacing scissor lift of HKL machine to eliminate waiting time loss 0.5 2928

11 Cost To reduce scrap OSR panels and save cost 0.65 --

12 Environment To reduce electric power consupmtion using transperent roof sheets 1.78 21840

13 Productivity To change the routing method of taper recta at BAZ machine 2.34 24560

14 Cost To use scrap OSR board instead of MDF for pack board(450 x 412.2mm) 0.26 --

15 Environment To provide unitized dust collector for SEB 7.14 10200

16 Productivity To improve productivty by using horizontal aggregate on BAZ machine 5.76 33030

17 Productivity To improve productivity of routing by nesting instead of cutting 1.26 31000

87.18 670323 kwhTotal Saving

STRATEGIES ADAPTED FOR AWARENESS CREATION AND EMPLOYEE INVOLVEMENT

SYSTEMATIC MONITORING PLANS

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S.No. Performance indicator Target Methodology for monitoring &

measurement

Frequency of

monitoring

1 Reduce Scrap generationReduce

below15%Scrap bin weighing mechanism Daily

2 Energy consumptionsp.consumption

< 0.15Smartsense report Daily

3 Product optimization > 90% Usage Cutrite optimization software Daily

4 Kaizen for yield > 20 Kaizen Management System Monthly

5 WIP Below 50 Lacs tfgbb0494m00 Monthly

6 Reduce rejection level 50000ppm Rejection rework analysis Monthly

7 CAPA 80% closure Monthly CAPA review Monthly

MONITORING AND MEASUREMENT PLAN - WOOD WORKING

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RESULTS ACHIEVED

Competitor 1 18%

Competitor 2 18%

Competitor 3 22%

Competitor 4 22%

0.297

0.219

0.169 0.178 0.168 0.162

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Particle Boards

0.090.08

0.050.0458 0.0417

0.0312

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Steel Metal

Specific Raw Material consumption Trend ( kg/ sq. ft. of production)

45% Reduction 65% Reduction

• Benchmarking for % waste

THANK YOU