Group7-Lucastvs Final 87407
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Transcript of Group7-Lucastvs Final 87407
LUCAS TVS :
A Journey towards Manufacturing Excellence
GROUP 7CHIRAG SINGHAL 031DEBASHRI 033DEEPU KURIEN 034DIPU PASWAN 035DEBASHISH B 032
AGENDA
FACTS ABOUT LUCAS TVS GROUP
BRIEF ABOUT THE CASE
CHALLENGES
SWOT ANALYSIS BEFORE CELLULAR LAYOUT
SWOT ANALYSIS AFTER CELLULAR LAYOUT
ISSUES & SUGGESTIONS
FACTS ABOUT LUCAS TVS GROUP
Lucas-TVS, a JV of Lucas Industries, UK & T V Sundaram Iyengar and Sons (TVS), India was established in 1961 to manufacture Automative Electrical Systems.
Lucas-TVS is India’s largest independent suppliers of automotive components and has got two divisions viz. –
1)Auto Electrical Division – Manufactures electrical products from starters to wipers.
2)Fuel Injection Equipment Division – Manufactures diesel fuel injection equipment for both direct and indirect diesel engines.
TS16949 and OSHAS 18001 certified company .
Padi and Mannur plants are certified with ISO 9001 and QS9000.
FACTS ABOUT LUCAS TVS GROUP (contd.)
Manufacturing facilities in Padi (Chennai), Rewari, Puducherry, Chakan(Pune), Uttarakhand & Indrad(Chennai).
Customers include Maruti,Tata, Hyundai, Ford,Honda, GM,Fiat,Force,Yamaha,HeroHonda, Simpson,Caterpillar,L&T,Komatsu,Swaraj,Tafe,Eicher,Royal Enfield,Bajaj.
LUCAS TVS GROUP & SALES TURNOVER (F’11)
LUCAS TVS (Auto Electricals) - $ 345 Million
DELPHI TVS (Diesel Fuel Injection Equipments) - $ 165 Million
India Nippon Electricals (Electronic Ignition Systems) - $ 56 Million
India Japan Lighting (Auto Lighting Systems) - $ 55 Million
Lucas Indian Service (Aftermarket Operations) - $ 62 Million
Source : www.lucas-tvs.com
BRIEF ABOUT THE CASE
The given case study deals with the evolution of the Indian Auto Industry during the post- independence period and it is characterized by three distinct phases viz.-
1)First Phase - Prior to 1983- License Raj, Less competition & little innovation.
2)Second Phase - Maruti Udyog enters in 1983- captures market with 83 % share of the Rs 10,000/- crore a year market. This resulted industry to slowly responding to the changing needs of customers.
3)Third Phase – It saw the advent of Liberalization in 1993. With Deregulation of Indian passenger car industry- International automobile companies entered resulting high growth.
Challenges
To cope up with liberalized and globalized environment.
To improve operational efficiencies of Lucas TVS.
To improve quality ,to reduce inventory of WIP and finished goods.
Implementation of best practices to match the global leaders.
Providing cross training to the work force .
Future action plan – For continual improvement to improve the process and increase the productivity to meet the customer demands.
SWOT ANALYSIS BEFORE CELLULAR LAYOUT
S W O T Existing plants
and Infrastructure
Low Quality Global Market Demand
Entry of Technological Advanced competitors like Bosch & Denso
Top management had a flexible mindset towards change
Irregularity in delivery schedules
Risk of failure in implementing changes
Global players support
Process Layout
Low Inventory turn ratio of 4.2 PPM against world average of 10-20 PPM
Action Plan by Management of Lucas TVS
Introduction of “Systems Approach towards Manufacturing”
Identifying capable managers and empowering them to implement change management
Worker Buy-in
Layout Changes
Training on SPC, Kanban,5s
Kaizens
Nagare Cell
SWOT ANALYSIS AFTER CELLULAR LAYOUT
S W O TWIP reduction Non – compliance
with quick demand of OEM
High demand Global competition
Diversification of supplies
Severe competition Enhanced exports Employee attrition
Flexible workforce to perform multiple tasks.
Excess capacity in anticipation of demand
Entry in new segments
Enhanced OEM presence in the Indian Market
ISSUES & REMEDIES
QUALITY QUALITY STRICT ADHERENCE TO STRICT ADHERENCE TO QUALITY TOOLS LIKE QUALITY TOOLS LIKE
TPM & TQM TPM & TQM
INEFFICIENT SUPPLY CHAIN INEFFICIENT SUPPLY CHAIN TIBCOTIBCO SUPPLY CHAIN SUPPLY CHAIN INTEGRATION SOA INTEGRATION SOA
OUTDATED TECHNOLOGY EMPHASIS OUTDATED TECHNOLOGY EMPHASIS ON AUTOMATIONON AUTOMATION
Source : www.lucas-tvs.com
HR ISSUES & FINANCE ISSUES
TRAINING TRAINING TECHNICAL TECHNICAL EMPOWERMENT OF EMPOWERMENT OF WORKFORCEWORKFORCE
VULNERABILITY IN KAIZENS INCREASE INCENTIVE FOR VULNERABILITY IN KAIZENS INCREASE INCENTIVE FOR EMPLOYEES EMPLOYEES
LOW CAPITAL INVESTMENT INCREASE INVESTMENT IN LOW CAPITAL INVESTMENT INCREASE INVESTMENT IN LATEST LATEST TECHNOLOGY TECHNOLOGY
Turnaround of various Parameters
THANK YOU