Project 4

Xiaochang LiMasaki Watanabe

Purdue University

Project TeamMentor

Mr. KN Swaminathan Mr. Richard Gomez

MemberMasaki Watanabe

Purdue MBA Student 6 years working experience at Nissan

Xiaochang Li Purdue undergraduate student Major in industrial Engineering

Project overviewProject Objective

Reduce SKUs of target partsScope

Forging partsDeliverables

Identify cost driversDevelop objective costing systemsArrive at guidelines for application

AgendaIntroduction

Definition for SKUBenefit of reducing SKUCompetitors’ solutions

Methodology An example of crank pinAn Example of connecting-rodStatistical results and analysisStandardization guideline

RecommendationsGuidelines for reducing SKUAlternatives for reducing SKU

Learnings from India and TVS

IntroductionWhat is SKU?

Stock Keeping Unit Defined as an unique identifier

Why reduce SKU?Easier data acquisitionSavings on engineering cost and lead timeReduction on quality problems

What competitor is doing

39.0x41.4 (49cc)Carburetor, 3 speedKick start

47.0x41.4 (72cc)Carburetor, 3 speedKick start

39.0x41.4 (49cc)Carburetor, 3 speedSelf start

39.0x41.4 (49cc)Port Injection, 3 speedKick start

39.0x41.4 (49cc)Port Injection, 4 speedKick start

Bore up

Change toSelf Start

Change to4 speed

Change toPort Injection

Insights from production line　 Unicorn

Stunner CBF

Shine Activa Aviator Dio

Stroke 4 4 4 4 4 4Cooling Air Air Air Air Air AirCam OHC OHC OHC OHC OHC OHCDisplacement

149.1 124.7 124.6 109 102 102

Bore 57.3 - - 50 50 50Stroke 57.8 - - 55 52 52

Power (HP) 13.3 11 10.3 8 7 7

Torque (kg) 1.3 1.1 1.1 0.9 0.8 0.8

　 　 　 　 　 　 　

Front Brake240mm

DiskDrum 130mmDisc 240mm

Drum 130mmDisc 240mm

130mm DrumDrum

130mmDisc 190mm

130mm Drum

Rear Brake130mm Drum

130mm Drum 130mm Drum 130mm Drum130mm Drum

130mm Drum

Methodology

An Example of Crank Pin

TVS KING 4S LPG ES

TVS KING GX-2S

PETROL ES

SCOOTY ES 60

CC-HG

SCOOTY PEP 4S 75 CC

TVS FLAME 125 ES

TVS APACHE RTR 160

ES

TVS STAR

SPORT CVTi

TVS STAR

CITY 110 ES

ENGINE NEO

ENGINE 150 ES 5

SP

Model #G419003

03DG519006

05GK619000

00DK319000

00DN419007

04DN919015

00DN819037

04DN819041

04BR118002

0R218008

0

Crank-pin #

G1020050

G2020089

K020070K302044

0N402034

0M202003

0N502016

0R102041

0R102041

0R202019

9

Diameter 30 25 6 25.1 28 28 25.1 26 26 28

Length 53 47.5 32.7 38.5 47 53 42 42 42 46

Liquid Honing Width

16.75 15 0 11.5 14.5 17.5 13.5 13.5 13.5 14.5

Weight 288 182 - 141 222 252 158 170 170 217

Price 54 31.93 42.2 34.98 44.36 47.44 36.36 38.02 38.02 42

Data Table 1

Access Data from SAP

How to identify key parametersBasic Criteria

Look at dimensions with tight tolerances

Record parameters whenShare interface with other partsaffecting the functionality of enginespecial treatment is applied

Always record weight

Methodology

ICD/MiniTab Data Entry

MiniTab Statistical Tests

Cost Driver Identification

Cost Objective Function

Derived from the previous

step

Adjustment of Trend

Adjustment of TrendPrice= - 72.9 + 0.000017 Volume + 4.22 Diameter

Adjustment Amount = Actual Price - Theoretic Price

= 31.93 – 32.61 = -0.68

AdjustedPrice= - 73.58 + 0.000017Volume + 4.22Diameter

Methodology

Criteria for Standardization Purpose: find similar parts and do

standardizationTwo approaches to follow

Look at all parametersIdentify significant parameters by

engineering knowledge

How to do standardizationEliminate parts with low production volumeStandardization by looking at the cost drivers

An Example of Connecting-Rod

Model TVS KING

4S LPG ES

TVS KING GX-2S

PETROL ES

SCOOTY ES 60 CC-

HG

SCOOTY PEP 4S 75

CC

TVS FLAME 125 ES

TVS APACHE RTR 160

ES

TVS STAR

TVS XL SUPER

ENGINE NEO

ENGINE 150 ES 5

SP NP.054

Model # G4190030

3D G5190060

5G K6190000

0D K3190000

0D N4190070

4D N9190150

0D N8190410

4B P1190000

L R1180020 R2180080

Con-rod # G1020049 G2020069 K020310 K3020419 M1020020 M7020269 N8020169 P020159 R1020279 R2020219

Big end diameter

38 32 21 30.1 36 36 33 21 33 36

Small end diameter

15 20 16 13 15 15 14 16 14 15

Length 120.1 123 76 86.8 106.4 109.3 91.1 84 101.25 98.2

Wide 18 16 11.9 14 17 17 14 11.9 14 17

Weight 201 179 60 109 155 166 125 66 131 159

Moving Price

65.28 57.35 26.29 37.38 51.03 45.68 27.77 29.28 50.29 0.01

Data Table 2

Cost Objective Function

Input Material Cost Input Material Cost = 0.04 Rs/g * Input

Material WeightInput Material Weight = Final Parts Weight *

RatioFinal Pats Weight = f(Specification of Parts)

Ratio = f(Specification of Part)

Final Parts Weight = - 127 + 3.57 BE + 0.847 L + 3.99 W

Ratio = 5.61 - 0.142 W

Recap of ScrapRecap of Scrap= 0.012 Rs/g * Scrap WeightScrap Weight = f(Input Material, Parts Weight)

Scrap = - 44.0 + 0.906 *(Input Material – Parts Weight)

Conversion CostConversion Cost= f(Parts Specification, Production Volume)

Conversion Cost = - 34.1 + 2.46 SE - 3.06 W + 0.125 L

+ 27.1 BE/SE - 0.000005 Volume

AdjustedConversion Cost = - 34.55 + 2.46 SE - 3.06 W +

0.125 L+ 27.1 BE/SE - 0.000005 Volume

RecommendationGuidelines for designers

Make new model by modifying current parts

Consider the cost drivers when designing

Standardization on varieties with small volume

Standardization on varieties with large fixed costStandardization based on engine model

What else we can doTo Reduce Part Cost

Increase flexibility of machines and operators

Reduce fixed cost in production

To shorten R&D Lead Time

Develop e accelerated evaluation methodCollaborative R&D with suppler and

manufacturing

What we have learned From India

Outstanding engineering education

Abundant manpowerAmbitions to dominate

the world marketBeautiful palacesAnimal friendly cityFriendly people

What we have learnedFrom TVS

Awareness of environmental conservationCompany Society Responsibility (CSR)Ambitions and actions to learn, change and

take risks Team spirit

Access Data from SAP

Step 1 Search for specific part

Access the latest drawings

Access Data from SAP

Step 3

Press to search

Access Data from SAP

Step 4

Find parts Enter key

words here

Access Data from SAP

Step 5Part

number

Access Data from SAP

Step 6

Go back to the main page and go to ZCV04N

Access Data from SAP

Step 7

2D drawings

are always

preferred