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PROJECT REPORT
ON
IMPLIMENTATION OF JUST IN
TIME AT MOSER BAER
Submitted in the partial fulfillment of the requirement
For the award of
POST GRADUATE DIPLOMA IN BUSINESS
MANAGEMENT (OPERATION)
SUBMITTED BY
NIRDOSH GUPTA
EN.NO. 200714990
SUBMITTED TO
SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL)
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CERTIFICATE
This is to certify that NIRDOSH GUPTA, student of SCDL Pune studying Post Graduate
Diploma in Business Administration has completed his Project in my guidance on title
IMPLIMENTATION OF JUST IN TIME AT MOSER BAER
Mr.
MBA
For VINAYAKA VIDYAPEETH.,
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ACKNOWLEDGEMENT
I take the opportunity to express my gratitude to all the concerned people who have directly
or indirectly contributed towards completion of this project. I extend my sincere gratitude
towards for providing the opportunity and resources to work on this project.
I am extremely grateful to my mentor in for his guidance and invaluable advice during the
projects.
At Last I would like to thank my parents for their constant support, throughout this project
NIRDOSH GUPTA
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OBJECTIVES
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EXECUTIVE SUMMARY
In this Project, I am going to examining the implementation of Just-In-Time methodology
in Moser Bear for its CD Making plant. Although this system was initially developed for
automobile industry but now the scene have changed this system is equally usefully for
other production houses also. This is possibly one of the most interesting manufacturing
revolution where companies involved in the production are integrated not only in their
business processes moreover in their physical plants. The concept has been is due to be
adopt. The case study clearly shows how companies can work together in a harmonic and
synchronised system meeting probably the most idealistic manufacturing principles (JIT) to
produce the best quality product within the shortest time frame with minimum/no wastage
and cost-effective to all parties. Careful production planning, cost-benefit analysis,
adequate outsourcing plans and customer orientation are being praises as the key success
factors of this amazing Just-In-Time concept.
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INDEX
CONTENTS PAGE No.
EXECUTIVE SUMMARY 05
INTRODUCTION TO JIT 07
COMPANY PROFILE 17
PRODUCT PROFIFE 20
OBJECTIVES OF THE STUDY 51
DESIGN OF THE STUDY 52PROJECT ANALYSIS 58
FINDINGS 59
SUGGESTIONS 70
CONCLUSION 71
BIBLIOGRAPHY 73
ANNEXURE 75
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INTRODUCTION
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What is JIT and Introduction
Just-in-time (JIT) is a management philosophy that strives to eliminate sources of
manufacturing waste by producing the right part in the right place at the right time. Waste
results from any activity that adds cost without adding value, such as moving and
storing.JIT (also known as lean production or stockless production) should improve profits
and return on investment by reducing inventory levels (increasing the inventory turnover
rate), reducing variability, improving product quality, reducing production and delivery
lead times, and reducing other costs (such as those associated with machine setup and
equipment breakdown). In a JIT system, underutilized (excess) capacity is used instead of
buffer inventories to hedge against problems that may arise.
JIT applies primarily to repetitive manufacturing processes in which the same products and
components are produced over and over again. The general idea is to establish flow
processes (even when the facility uses a jobbing or batch process layout) by linking work
centers so that there is an even, balanced flow of materials throughout the entire production
process, similar to that found in an assembly line. To accomplish this, an attempt is made
to reach the goals of driving all queues toward zero and achieving the ideal lot size of one
unit. The goal of JIT, therefore, is to minimize the presence of non-value-adding
operations and non-moving inventories in the production line. This will result in shorter
throughput times, better on-time delivery performance, higher equipment utilization, lesser
space requirement, lower costs, and greater profits.
JIT was developed as a means of meeting customer demands with minimum delays. Thus,
in the olden days, JIT is used not to reduce manufacturing wastage, but primarily to
produce goods so that customer orders are met exactly when they need the products.
JIT is also known as lean production or stockless production, since the key behind
a successful implementation of JIT is the reduction of inventory levels at the various
stations of the production line to the absolute minimum. This necessitates goodcoordination between stations such that every station produces only the exact volume that
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the next station needs. On the other hand, a station pulls in only the exact volume that it
needs from the preceding station.
The JIT system consists of defining the production flow and setting up the production
floor such that the flow of materials as they get manufactured through the line is smooth
and unimpeded, thereby reducing material waiting time. This requires that the capacities
of the various workstations that the materials pass through are very evenly matched and
balanced, such that bottlenecks in the production line are eliminated. This set-up ensures
that the materials will undergo manufacturing without queuing or stoppage.
Another important aspect of JIT is the use of a 'pull' system to move
inventories through the production line. Under such a system, the requirements of the next
station are what modulate the production of a particular station. It is therefore necessary
under JIT to define a process by which the pulling of lots from one station to the next is
facilitated.
JIT is most applicable to operations or production flows that do not change, i.e., those
that are simply repeated over and over again. An example of this would be an automobile
assembly line, wherein every car undergoes the same production process as the one before
it.
Some semiconductor companies have likewise practiced JIT successfully. Still, there
are some semiconductor companies that don't practice JIT for the simple reason that their
operations are too complex for JIT application. On the other hand, that's precisely the
challenge of JIT - creation of a production set-up that is simple enough to allow JIT. (find a
semi conductor factory)
Inventory stocks allow production process to continue even when some problem occurs. In
a way, inventory stocks act like a buffers to hide any problem that may occur. But, with
JIT, there are no buffers to hide problems and thus, occurrence of problem can shut down
the entire production process. Thus, JIT philosophy helps organization to prominently
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expose problems and thus, bring a clear focus on removal of it at source, by eliminating
the cause, rather than effects, of problem. With JIT, it is believed that the root causes of
most problems are due to faulty production process design. Hence, with JIT, nothing
is taken for granted, everything is subject to analysis. Each activity is identified
as either Value-Added' or 'Non-Value-Added'. The reduction of 'Non-Value-
Added' activities is achieved mainly through increasing manufacturing flexibility and
improved quality. JIT is an extremely powerful tool to identify where improvements
should be made. It helps you to identify cause (not the effect) of problem and its
elimination. Failures and exceptions are treated as opportunities to improve
the system. In fact, JIT initiates failures due to problems to expose them. It is a system of
trouble-shooting, within a culture of constant analysis and improvement. It is clear, as an
attitude and approach, JIT and TQM are perfectly complimentary to each other, to expose
and correct problems at source, so as to avoid wasting resources on production of defective
products.
Just-in-time manufacturing is a process where suppliers deliver inventory to the
factory only when it's needed for assembly. Companies are beginning to turn to Internet-
based technologies to communicate with their suppliers, making the just-in-time ordering
and delivery process speedier and more flexible.
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History of Just in Time:
Just-In-Time is a Japanese manufacturing management method developed in 1970s. It
was first adopted by Toyota manufacturing plants by Taiichi Ohno. The main concern at
that time was to meet consumer demands. Because of the success of JIT management,
Taiichi Ohno was named the Father of JIT.
After the first introduction of JIT by Toyota, many companies followed up and
around mid 1970s', it gained extended support and widely used by many companies.
One motivated reason for developing JIT and some other better production techniques
was that after World War II, Japanese people had a very strong incentive to develop a
good manufacturing technique to help them rebuilding the economy. They also had a
strong working ethnic which was concentrated on work rather than leisure, seeked
continuous improvement, life commitment to work, group conscious rather than
individualism and achieved common goal. This kind of motivation had driven Japanese
economy to succeed. Because of the natural constraints and the economy constraints
after World War II, Japanese Manufacturers looked for a way to gain the most efficient
use of limited resources. They worked on "optimal cost/quality relationship".
Before the introduction of JIT, there were a lot of manufacturing defects for the
existing system at that time. According to Hirano, this included inventory problem,
product defects, risen cost, large lot production and delivery delays. The inventory
problems included the unused accumulated inventory that was not only unproductive,
but also required a lot of effort in storing and managing them. Other implied problems
such as parts storage, equipment breakdowns, and uneven production levels. For the
product defects, manufacturers knew that only one single product defects can destroy the
producer's credibility. They must create a "defect-free" process. Instead of large lot
production - producing one type of products, they awaked that they should produce
more diversified goods. There was also a problem of rising cost, the existing system
could not reduce cost any further but remember improvement always leads to cost
reduction.
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Lastly, the existing system did not manage well for fast delivery request, so, there was a
need to have a faster and reliable delivery system in order to handle customers' needs.
Thus, JIT manufacturing management was developed based on these problems.
Focus of JIT?
Mainly JIT focuses to eliminate the waste or the non-value added. Thus there are several
types of wastes categorised. JIT usually identifies seven prominent types of waste to be
eliminated:
Waste from Overproduction Transportation Waste Processing WasteWaste from Product Defects
Waste of waiting/idle time
Inventory WasteIntroduction Phase for Just in Time:
According to Hirano, the introductory phases of JIT involve 5 steps.
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FIVE STEPS IN THE INTRODUCTORY PHASE OF JIT
Step 1: Awareness Revolution
It means giving up old concept of managing and adopting JIT way of thinking. There are
10 principles for improvement:
1. Abolish old tradition concepts.2. Assume that new method will work.3. No excuses are accepted.
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4. It is not seeking for perfection, absolutely zero-defect process, few defects isacceptable.
5. Correct mistakes immediately.6. Do not spend money on improvement.7. Use you brain to solve problem.8. Repeat to ask yourself 5 times before any decision.9. Gather information from several people, more is better!10.Remember that improvement has no limits.
The idea of giving up old concept was especially for the large lot production, The lot
production was felt that "having fewer changeover was better", but it was no longer true.
Whereas JIT is a one-piece flow manufacturing. To compare the two, Hirano had this idea:
Lot production: "Unneeded goods...In unneeded quantities...At unneeded times..." JIT:
"Needed goods...In needed quantities...At needed times..."
The main point here is to have an awareness of the need of throwing out old system and
adopting a new one.
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Step 2: 5S's For Workplace Improvement
The 5S's stand for:
Seiri - Proper Arrangement Seiton - Orderliness Seiso - Cleanliness Seiketsu -
Cleanup Shitsuke - Discipline
This 5S's should be implemented company-wide and this should be part of a total
improvement program.
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Seiri - Proper Arrangement means sorting what you have, identifying the needs and
throwing out those unnecessary. One example is using red-tags. This is a little red-
bordered paper saying what the production is, how many are accumulated and then stick
these red tags onto every box of inventory . It enhances the easiness to know the inventory
status and can reduce cost.
Seiton - Orderliness means making thing in order. Examples include keeping shelves in
order, keeping storage areas in order, keeping workplace in order, keeping worktables in
order and keeping the office in order.
Seiso - Cleanliness means having a clean workplace, equipment, etc.
Seiketsu - Cleanup mean maintaining equipment and tools.
Shitsuke - Discipline means following the rules and making them a habit.
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Flow manufacturing means producing one single piece of product at a time but multi-
handling which follows the process sequence.
Step 3: Flow Manufacturing
1. There are several main points concerning flow manufacturing:
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Arrange machines in sequence.
2. U-shaped production line (Cellular Manufacturing).
3. Produce one-piece at a time.4. Train workers to be multi-skilled.5. Follow the cycle time.6. Let the workers standing and walking around while working.
Use small and dedicated machines.
Step 4: Standard Operations
Standard Operation means to produce quality safely and less expensively through efficient
rules and methods of arranging people, products and machines.
The basis of standard operations is:
1. Cycle time It means how long it would take to "carry out part all the waythrough the cell". Following are the equations for calculating cycle time.
Daily Quantity Required = Monthly Quantity Needed / Working Days per month
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Cycle Time = Working Hours per day / Daily Quantity Required
2. Work sequence3. Standard stock-on-hand4. Use operation charts
Step 5: Multi-Process Handling
Multi-process handling means one worker is responsible for several processes in a cell.Some points that should be aware:
Clearly assign jobs to machines and workers.
Make a good use of U-shaped cell manufacturing.
Multi-skilled workers
Operation should be able to perform multi-machine handling and multi
process handling.
Multi-machine handling - a worker should handle several machines at once, this is also
called "horizontal handling".
Multi-process handling - a worker should handle several different processes at once, this is
also called "vertical handling" and this is the basis for JIT production.
Uses casters extensively as author written, "Floor bolts are our enemies! Machines
must be movable."
Elements of Just in Time
According to Cheng, the basic elements of JIT manufacturing are:
People Involvement
Plants
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System People Involvement
Maintaining a good support and agreement from people involved in production. This is not
only reduce the time and effort in implementation of JIT, but also minimize the chance of
creating implementation problem. The attempt to maximize people's involvement may
carry through the introduction of quality circle and total involvement concept.
Manufacturers can gain support from 4 sources.
1. Stockholders and owners of the company - should maintain a good long-term relationship among them.
2. Labor organization - all labors should be well-informed about the goals ofJIT, this is crucial in gaining support from the them.
3. Management support - support from all level of management. The ideas ofcontinuous improvement should spread all over the factory, managers and
all shop-floor labor.
4. Government support - government can show their support by extending taxand other financial help. This can enhance the motivation, and also help in
financing the implementation of JIT.
Plants
Certain requirements are needed to implement JIT, there are:
1. Plant layout - the plant layout is mainly focus on maximizingworking flexibility. It requires the use of "multi-function
workers".
2. Demand pull production - it means to produce when the order isreceived. This can manage the quantity and time more
appropriately.
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3. Kanban - a Japanese term for card or tag. Special inventory andprocess information are written on the card. This helps tying and
linking the process more efficiently.
4. Self-inspection - it is carried out by the workers at catchmistakes immediately.
5. Continuous improvement - this concept should be adopted byevery members in the organization in order to carry out JIT.This is the most important concept of JIT. This can allow an
organization to improve its productivity, service, operation
and even customer satisfaction in an ongoing basis.
System
This refers to the technology and process that combines the different processes and
activities together. Two major types are MRP (Material Requirement Planning) and MRP
II (Manufacturing Resource Planning).
MRP is a computer-based, bottom-up manufacturing approach. This involves two plans,
production plan and master production schedule. Production plan involves the management
and planning of resources through the available capacity. Master production schedule
involves what products to be produced in what time.
MRP II is mainly involved the management or planning of financial resources in order to
carry out the operation.
Goal of Just in Time
According to Cheng in Just-In-Time Manufacturing - An Introduction, he explains the
objectives of JIT. There are three main objectives:
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1. Increasing the organization's ability to compete with others and remain competitiveover the long run. The competitiveness of the firms is increased by the use of JIT
manufacturing process as they can develop a more optimal process for their firms.
2. Increasing efficiency within the production process. Efficiency is obtained through theincrease of productivity and decrease of cost.
Reducing wasted materials, time and effort. It can help to reduce the costs. Other short-
term and long-term objectives are:-
1. Identify and response to consumers needs. Customers' needs and wants seem to bethe major focus for business now, this objective will help the firm on what is demanded
from customers, and what is required of production.
2. Optimal quality/cost relationship. The organization should focus on zero- defectproduction process. Although it seems to be unrealistic, in the long run, it will eliminate a
huge amount of resources and effort in inspecting, reworking and the production of
defected goods.
3. Reduce unwanted wastes. Wastes that do not add value to the products itselfshould be eliminated.
4. Develop a reliable relationship between the suppliers. A good and long- termrelationship between organization and its suppliers helps to manage a more efficient
process in inventory management, material management and delivery system. It will also
assure that the supply is stable and available when needed.
5. Plant design for maximizing efficiency. The design of plant is essential in terms ofmanufacturing efficiency and utility of resources.
6. Adopt the work ethnic of Japanese workers for continuous improvement.
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Commit a long-term continuous improvement throughout the organization. It will help the
organization to remain competitive in the long run.
Other Similar Ideas
1.Reduction of Inventory. JIT reduces inventory at all level of the organization.2.Reduction of Lead Time. Lead time such as setup time and move time and waiting timeis reduced.
3. Quality Control. JIT improves the quality control by increasing its efficiency ofmanaging shop floor production and increasing its commitment to its suppliers.
4. Improvement for Performance. In JIT manufacturing, the organization can obtain agreater impact/control over its suppliers. With fewer suppliers, organizations have larger
control because the amount purchased is usually large. And, organizations can obtain a
tighter requirement on products from their suppliers.
5.Total Preventive Maintenance. JIT provides preventive maintenance to lessen the riskof machine breakdowns.
6.Continuous Improvement. JIT is a never-ending method in operation management.7. Strategic Gain. JIT helps organization to remain competitive in the market place.8.Reduction of Wastes. JIT helps significantly in reducing wastes.
JIT can help organization remains competitive by offering consumers higher
quality of products than their competitors, it is very important in the survival in the market
place.
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These major objectives are suitable for all organizations. But each organization is unique
in some way, adjustments of JIT objectives for each form should be made in order to
complement the overall production process.
Limitation of Just in Time
Regardless of the great benefits of JIT, it has its limitations, the following are the major
limitations.
Culture Differences The organizational cultures vary from firm to firm. There aresome cultures that tie to JIT success but it is difficult for an organization to change
its cultures within a short time.
Traditional Approach The traditional approach in manufacturing is to store up alarge amount of inventory in the means of backing up during bad time. Those
companies rely on safety stocks may have a problem with the use of JIT.
Difference in implementation of JIT Because JIT was originally establishedin Japanese, it is somehow different for implementing in western countries. The
benefits may vary.
Loss of individual autonomy. This is mainly due to the shorter cycle timeswhich adds pressures and stress on the workers.
Loss of team autonomy. This is the result of decreasing buffer inventories whichlead to a lower flexibility of the workers to solve problem individually.
Loss of method autonomy. It means the workers must act some way whenproblems occur, this does not allow them to have their own method to solve a
problem.
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JIT success is varied from industry to industry. Some industries are benefit morefrom JIT while others do not.
Resistance to change JIT involves a change throughout the whole organization,but human nature resists to changes. The most common resistances are
emotional resistance and rational resistance. Emotional resistance are those
psychological feeling which hinder performance such as anxiety. Rational
resistance is the deficient of the needed information for the workers to perform
the job well.Some other limitations:-
Relationship between management and employees is important .A mutual trust must
be built between management and employees in order to have effective decision
making.
Employee commitment Employees must commit to JIT, to enhance the qualityas their ultimate goal, and to see JIT as a way to compete rather than method
used by managers to increase their workload.
Production level JIT works best for medium to high range of productionvolume.
Employee skill JIT requires workers to be multi-skilled and flexible to change.
Compensation should be set on time-based wages. This allows the workers toconcentrate on building what the customers wants.
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JIT - Philosophy or Technique
Just In Time is a philosophy and not the technique for elimination of wastes. The JIT
strategy is to have "the right product at the right place at the right time."
The Just-in-time philosophy that emerged, is a management logic based on simplicity and
continuous improvement. It may be applied to any process where it will aim to make
improvements through elimination of excess, waste and unevenness.
The Just-in-Time concept comprises methods and techniques that aim to increase the
potential for short times to delivery.
Production system in which both the movement of goods during production and deliveries
from suppliers are carefully timed so that at each step of the process the next (usually
small) batch arrives for processing just as the proceeding batch is completed
The "Just in time" (JIT.) inventory concept, also called Kanban, asserts that just enough
inventories, arriving just in time to replace that which was just used, is all the inventory
that is necessary at any given time. Excessive inventory unnecessarily ties up money, adds
warehousing costs, increases risk of damage and risks obsolescence, and most of all, can
possibly obscure opportunities for operational improvements.
Storing inventory is still the basics of warehousing, but in today's business it constitutes
only part of the total. A modern thought on warehousing is that large inventories are really
not as necessary as once believed.
To some companies storing large quantities of inventory is detrimental to business because
it ties up capital and can also disguise poor management practices. The JIT philosophy
emphasizes flow flexibility and developing supply chains to reduce all excess and waste
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COMPANYPROFILE
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HISTORY
Moser Baer India was founded in New Delhi in 1983 as a Time Recorder unit in technical
collaboration with Maruzen Corporation, Japan and Moser Baer Sumiswald, Switzerland.
In 1988, Moser Baer India moved into the data storage industry by commencing
manufacturing of 5.25-inch Floppy Diskettes. By 1993, it graduated to manufacturing 3.5-
inch Micro Floppy Diskettes (MFD).
In 1999, Moser Baer India set up a 150-million unit capacity plant to manufacture
Recordable Compact Disks (CD-Rs) and Recordable Digital Versatile Disks (DVD-Rs).
The strategy for the optical media project was identical to what had successfully been
implemented in the diskette business - creating a facility that matched global standards in
terms of size, technology, quality, product flexibility and process integration. The company
is today the only large Indian manufacturer of magnetic and optical media data storage
products, exporting approximately 85 percent of its production.
Since inception, Moser Baer has always endeavored to create its space in the international
market. Aiding the company in its efforts has been a carefully-planned and sustainable
business model - low costs, high margins, high profits, reinvestment and capacity growth.
Along the way, deep relationships have been forged with leading OEMs, with the result
that today there are hardly any global technology brands in the optical media segment that
Moser Baer is not associated with.
In 2006, the company announced its foray into the Photovoltaic and Home Entertainment
businesses. In 2007, the IT Peripherals and Consumer Electronics division was formed.
Milestones
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1983 Established
1985
Production of 8.0"/5.25" Disks
1987 Production of 3.5" Disks
1998 ISO 9002 Certification
1999 Production of CD-R
2000 Production of CD-RW
2002 Completely Integrated Manufacturing
2003 Production of DVD-R Production of DVD-RW ISO Certification for all Facilities Launch of 'Moserbaer' Brand in Indian Market Signed one of Largest Outsourcing Deals in Indian Manufacturing
2004 'Lightscribe' Deal with HP HP Deal for India and SAARC Region Contributing Member of Blu-Ray Disk Association
2005 ISO 14001 & OHSAS 18001 certification for Moser Baer plants. Commencement of Phase III of Greater Noida Plant Announced Moser Baer Photovoltaic Ltd as it's wholly owned subsidiary Received status of SEZ developer from Govt. of India Announced a wholly owned subsidiary-Moser Baer SEZ Signed MoU with IIT, Delhi
2006 The first company in the world to start volume shipments of HD DVD-R Signed Technology MoU with IT BHU
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Patented technology approved by the Blu-ray Disc Association In-house R&D Centre approved by Ministry of Science and Technology Launched USB Flash drives Forayed into entertainment space, enters Home Video market
2007 Acquired OM&T BV - a Philips' optical technology and R&D subsidiary Announced start of trial run of solar photovoltaic cell production facility Set up the world's largest Thin Film Solar Fab Launched US$150 mn FCCBs Moser Baer Photo Voltaic announced commercial shipment of solar
photovoltaic cells
Moser Baer Photo Voltaic announced US$880 million strategic sourcingtie-up with REC Group
Forayed into PC peripherals market: Launches Optical Disk Drives(ODDs), Headphones, Keyboards, Optical Mouse etc.
Launched Branded DVD Player
2008 Moser Baer plans 600 MW Thin Film PV capacity with an estimatedinvestment of over $ 1.5 bn
Moser Baer Photo Voltaic announces strategic sourcing tie-up with LDKSolar
Moser Baer announces successful trials of first Gen 8.5 Thin Film plant Moser Baer gets the coveted blu-ray product verification Moser Baer signs exclusive home video licensing deal with UTV Motion
Pictures
Moser Baer launches a digital video processing facility in Chennai Moser Baer secures customer sales orders of $500 million for solar
modules
Global investors inject Rs. 411 crore into Moser Baer's solar photovoltaicbusiness
Moser Baer announces successful trials of first Gen 8.5 Thin Film plant Moser Baer Photo Voltaic announces strategic sourcing tie-up with LDK
Solar
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Moser Baer plans 600 MW Thin Film PV capacity with an estimatedinvestment of over $ 1.5 bn
2009 Moser Baer launches sleek and stylish MP3 players Moser Baers thin film solar modules are now IEC certified Moser Baer to set up one of Indias largest rooftop solar PV installations
in Surat
Slim and Elegant Moser Baer TFT Monitor Moser Baers thin film line ready for production of ultra-large solar
modules
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ProductSTORAGE MEDIA
The company manufactures the entire spectrum of optical storage media products including
Recordable Compact Discs (CD-R), Rewritable Compact Discs (CD-RW), Pre-
recorded CD/DVD, Digital Versatile Disks (DVD-R) and Rewritable Digital Versatile
Disks (DVD-RW) and Blue Laser Discs in the optical storage media segment. In the
Magnetic Data Storage category Moser Baer manufactures Compact Cassettes, Micro
Floppy Disks (MFD) and Digital Audio Tapes (DAT).
Moser Baer started the production of CDRs in the year 1999. At that time it came out withonly Pro CDRs. Currently Moser Baer is producing two kinds of CDRs viz. Moser Baer
Pro CDRs and Moser Baer Mini CDRs. Moser Baer products can meet any recording
requirement. Whether it is archiving important files, distributing corporate information or
duplicating small volume production runs. CD-R demand has witnessed explosive growth
over the last few years (1998-2002 CAGR 109 per cent). One of the principal drivers of this
growth has been the increasing attach rate of CD-R drives in PCs and the widespread
usage of CD-R media for information storage and data interchange. It would be important
to note that the CD format is well entrenched in hundreds of millions of homes and offices
and is the only medium virtually guaranteeing information interchange. Importantly, the
latest DVD drives are also backward compatible to CD-R media.
CD-R Demand Drivers
A high PC penetration: As more PCs are sold with Recordable CD and DVD drives,consumption of recordable media is expected to substantially increase and usage is
expected to become broader based.
Lengthened PC life: As there has been a perceptible extension in the life cycle of the PCduring the global economic slowdown, the life cycle of CD-R should get elongated.
Price of drives: As prices of recordable CD drives have reached levels almost that ofRead only, drive popularity
Backward compatibility: Virtually all DVD drives being currently sold, can playbackCD disks, also most DVD recorders, can also record CD-R disks.
Due to the differences in applications, and large storage capacity (700MB), RecordableCD disks should be in use well into this decade.
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Legacy installed bases: There are over 1.5 billion drives installed worldwide, which canread CD disks, including the installed base of DVD drives, the number increases to over
2.0 billion and growing.
Varieties of CD-Rs
Moser Baer Super: Ideal for all general Data, Audio, Video recording applications. Moser Baer Premium: Ideal for critical archival applications and increased security. Moser Baer Extra: 700 MB/80 min, for enhanced storage capacity. Moser Baer Printable: 650 MB/75 min with unique printable layer. Moser Baer Thermal: For thermal printing surface applications. Moser Baer Audio: For optimum recording of music in real-time applications.
Specifications
Format Orange Book (Part II) and ISO 9660Recording Capacity 650 MB ( 700 MB also available )Recording Time 74 minutes ( 80 minutes also available )UnrecordedGroove reflectivity > 70%Radial Contrast (typ.) 0.08Push Pull Amplitude 0.090RecordedBLER average < 10 cpsJitter < 35 nsReflectivity (Rtop) > 65%I11 / Itop > 0.65
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Moser Baer Pro CD-Rs
Moser Baer Pro CD-Rs are an advanced creation for high-speed recording
and compatible with most conventional recording drives. Being the first and
only 52x CD-R to be launched in India, they also provide excellent thermal
sensitivity to the laser ray and maintain data integrity without degradation in
any way.
Pro CD Recordable Moser Baer Pro CD-Rs are
highly advanced discs that enable high-speed
recording and storing of not just data, but also
audio and video files. The first 52x CD-Rs to be
launched in India, they provide excellent thermal
sensitivity to the laser ray and maintain data integrity without degradation in any way.Moser Baer Pro CD-Rs are compatible with most conventional recording drives.
Capacity : 700 MB / 80 min
Speed : 2x-52x
Disc Diameter : 120 mm 0.3 mm
Thickness : 1.14 + 0.06 / -0.01 mm
Centre Hole Dia : 15 mm 0.05 mmRecording Layer : Pthalocyanine Dye
Reflector Layer : Silver
Protective Layer : UV Lacquer
A CD-R is a blank media that can be used to record data on it. Once the data has been
recorded or written on the CD-R, it cannot be erased. Its storage capacity today can vary
from 650MB to 800 MB. CD-R speeds have reached 52x today.
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But to write data onto a CD-R, one needs a CD Writer. Like a regular CD-ROM drive, a
CD Writer not only reads data, it can also write data on the disc. Music sharing has been
one application that has been a trigger as far as the popularity of CD- R is concerned.
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Moser Baer Pro Mini CD-Rs
With hard disks shrinking to the size of 'Thumb-drives', to some, CD-Rs too have come to
be seen as physically bulky and unnecessarily large in terms of data storage space. Moser
Baer introduces Mini-CD-Rs just for that. They provide you with better portability while
maintaining their superior recording/playback characteristics and compatibility.
With a diameter of 8 cm, this medium is ideal for presentations and credentials or for that
matter, quite a few mp3 songs! They come in an attractive box to ensure that even these
small CD-Rs are safe. Best of all, these Minis CD-Rs can be used in any CD-ROM drive,
CD Writer or CD Player. In fact, this media redefines 'Compact' Discs.
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Capacity : 185 MB / 21 min
Speed : 24x(Drive dependent)
Disc Diameter : 80 mm 0.3 mm
Thickness : 1.14 + 0.06 / -0.01 mm
Centre Hole Dia : 15 mm 0.05 mm
Disc Material : Polycarbonate
Recording Layer : Pthalocyanine
Reflector Layer : Silver
Protective Layer : UV Lacquer
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Blu-ray Discs
Visit BDA Website
Moser Baer India Ltd., the 2nd largest Optical media manufacturer in the world, brings to you the
highest quality Blu-ray discs, guaranteed by the technology & process expertise provided by one of the
format originatorsPhilips.
The discs are manufactured at its subsidiaryOM&T(formerly Philips R&D) based in Europe and at its
factory in Greater Noida (near Delhi) in India. The Greater Noida facility is the worlds largest single
location optical media factory producing all types of formats.
OM&Tis one of the founding members of the Blu-ray disc association (BDA) & a pioneer in
developing the Blu-ray format. Our technological prowess is verified by the fact that Philips has
transferred its entire supply ofCD, DVD & BDR calibration and test discs to OM&T.
Blu-ray Technology at Moser Baer
Moser Baer is worlds first company (outside Japan)
First to ship next-generation formats like Blu-ray discs. Supplier to leading OEM brands State of the art manufacturing facility in Europe. Verified by the Blu-ray disc association:BDR 1x-2x, 1x-4x, 1x-6x and BDRE 1x-2x Fully integrated & equipped R&D facilities in Netherlands and India. Calibration & Test discs supply for Philips entirely managed by OM&T LTHdye based BDR 1x-4x at GN*
* under development
Technology at its best
Scratch Protect best in the class surface protection for everyday handling Print Max Full surface printable Inkjet & Thermal* discs Works with leadingdrives & CE recorders
http://www.blu-raydisc.com/http://www.blu-raydisc.com/http://www.om-t.net/http://www.om-t.net/http://www.om-t.net/http://www.om-t.net/http://www.om-t.net/http://om-t.net/products-philips-blu-ray-test-disc.asphttp://om-t.net/products-philips-blu-ray-test-disc.asphttp://om-t.net/products-philips-blu-ray-test-disc.asphttp://www.moserbaer.com/blu-ray-discs-compatibility.asphttp://www.moserbaer.com/blu-ray-discs-compatibility.asphttp://www.moserbaer.com/blu-ray-discs-compatibility.asphttp://www.blu-raydisc.com/http://www.moserbaer.com/blu-ray-discs-compatibility.asphttp://om-t.net/products-philips-blu-ray-test-disc.asphttp://www.om-t.net/http://www.om-t.net/http://www.blu-raydisc.com/7/30/2019 Nirdosh Gupta Mosebaer
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Ideally suited for data archiving, hi definition Audio-video recording & distribution etc. Lifetime in excess of 50 years
* under development
Meets all your needs
1. BDR 1x-4x, 1x-6x, 25GB2. BD RE 1x-2x, 25GB3. Full Surface Inkjet Printable4. Full Surface Thermal Printable
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PHOTO VOLTAIC
Moser Baer provide customised energy solutions using different technologies to suit
customer specific requirements.
Crystalline Silicon Cells and Modules
80 MW fully automated, horizontal, in-line cell
manufacturing facility with throughput of 3,000
wafers/hour 80 MW flexible module line capable
of delivering modules in multiple cell
configurations Certifications - IEC 61215
(Edition II), IEC 61730 (Safety Class II), CE, UL
1703
Thin Film Modules
40 MW capacity with products available in
quarter size, half size and full size Use of non-
toxic materials in manufacturing of products
Certifications - IEC 61646, IEC 61730, CE
Concentrator
Strategic Investments in SolFocus for High Concentrators,
Solaria for Low Concentrators and Skyline for Mid
Concentrators
\
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Consumer Electronics Products
Moser Baer has entered into IT Peripherals and Consumer Electronics. In IT Peripherals theproduct range comprises of USB drives, Memory Cards, DVD writers, PC Peripherals, TFT
Monitors, UPS and External Hard Drives. In the Consumer Electronics arena, the company has
come up with a product range with medium to hi-end positioning comprising of Ultra Advanced
LCD TVs, DVD Players, Portable DVD Players, Digital Photo Frames, Media Players and
Multimedia Speakers.
MP3 Players
MP 565-2G
High Contrast LCD Display with 7 colourBacklit
Integrated Flash memory Random (shuffle) Music Playback Hold feature prevents accidental key presses Plays MP3 and WMA digital music files USB 2.0 Hi speed for fast file transfers
MP 582-2G
Clip your music anywhere Plays MP3 and WMA digital music files Random (shuffle) Music Playback Hold feature prevents accidental key presses Mobile Data storage function USB 2.0 for fast file transfers
http://www.moserbaerconsumerproducts.com/mp3-players-mp-582.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-582.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-565.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-565.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-582.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-582.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-565.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-565.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-582.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-582.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-565.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-565.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-582.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-582.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-565.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-565.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-582.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-582.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-565.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-565.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-582.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-582.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-565.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-565.asp7/30/2019 Nirdosh Gupta Mosebaer
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History
MoserBaer was set up in 1983 by Deepak Puri to manufacture magnetic media products. It
started with manufacturing the 8 inch floppy disc. As formats moved, the company has
built across formats and moved from manufacturing 8 inch to the 5.25 inch to 3.5 inch
floppy diskettes. Over the last five years, revenues have grown at a compounded annual
growth rate of 36 per cent and profits at 60 per cent. The company has an 11% share of the
global recordable optical media market, making it the largest player in India and third
largest in the world. Over 80 per cent of Moser Baer's production is exported to 82
countries across six continents and the company has strong tie-ups with all the major
technology brands in the world. Today, the company is the fifth largest manufacturer of
optical and magnetic storage media globally.
Moser Baer India is among the worlds largest manufacturers of optical media products.
Since it was set up 24 years ago Moser Baer has established itself as a dynamic Indian
transnational with a strong focus on research and development, has successfully developed
cutting edge technologies for recordable optical media, constantly innovating and
introducing new products and processes.
Its goal has been simple and straightforward to be a dominant player in the global storage
media arena. An emphasis on high quality products and services has enabled Moser
Baer to emerge as one of India's leading technology companies.
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Vision and Mission
Vision"Touching every life across the globe through high technology
products and services"
MissionWe will drive growth through our excellence in mass manufacturing.
We will move up the value chain through rapid development of technology,products and services.
We will leverage our relationships, distribution, cost leadership and "can do"
attitude to become a global market leader in every business.
Values
Teamwork
Thinking and working together across functional silos, hierarchies, businesses
and geographies. Cooperating and supporting each other towards common
goals.
IntegrityConsistently behaving and taking decisions in an ethical, trustworthy and fair
manner in all spheres of life.
Passion
Missionary zeal coming out of one's heart to drive to the goal which gives one
a feeling of "do it with pride" and "love to be there". A feeling that
encourages one to dream & realise the dreams. Self commitment to give more
than 100% & create value.
Speed
Meeting and exceeding customer's expressed or implied expectations by a "do
it" attitude and by doing right, first time, on time and every time.
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KEY MANAGEMENT
Deepak Puri
Chairman & Managing Director, Moser Baer India LimitedAs Chairman and Managing Director of Moser Baer India Ltd, Deepak Puri provides strategic
leadership and direction to the organization. He steers the company with his vision of making Moser
Baer one of the most respected technology companies globally.
Ratul Puri
Executive Director
Ratul Puri has been the Executive Director of Moser Baer India Ltd since 2001. Ratul is responsible for
the overall corporate management and financial control of the organization.
Rakesh Govil
Executive Vice-President - Corporate Strategy & Business Development
Rakesh Govil has been associated with Moser Baer India Ltd since August 1999, and is currently
designated Executive Vice-President: Corporate Strategy & Business Development for the Group.
Yogesh B Mathur
Group Chief Financial Officer
Mr Yogesh B Mathur joined Moser Baer India Ltd as Group Chief Financial Officer in July, 2005. In
his current capacity, he is responsible for steering the functioning of the Finance, Treasury, Accounts,
Audit and IT departments and provides strategic vision and leadership to the company.
VC Agerwal
COO - Blank Optical Media
Mr. VC Agerwal is the COO - Blank Optical Media at Moser Baer India Ltd. He has been associated
with the company since 2002. He heads the operations of all the 4 plants at Moser Baer, located in
Noida and Greater Noida.
Ravi Khanna
CE - Moser Baer Photovoltaic Ltd.
Ravi Khanna is the Chief Executive of Moser Baer Photo Voltaic Ltd, a fully owned subsidiary of
Moser Baer India Ltd.
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Under his dynamic and open management style, MBPV is implementing a state of art 80 MW Silicon
wafer cell and module making plant and upto 600 MW of Thin Film capacity by 2010.
Harish Dayani
CE - Entertainment Division
Harish Dayani is the Chief Executive, Entertainment Divison, Moser Baer and is responsible for
providing direction and market leadership for the company in India and will also be responsible for
taking this new initiative to greater heights.
Ram Nomula
CE - Moser Baer Entertainment Services
Mr. Ram Nomula is the Chief Executive of Media & Entertainment Services at Moser Baer. In this
position, he provides strategic leadership to the division's media mastering, authoring, replication and
packaging services.
Bhaskar Sharma
EVP, IT Peripherals & Consumer Electronics
Mr. Bhaskar Sharma is Executive Vice President in Moser Baer India Limited. He is a post graduate in
Business Administration and has an overall professional experience of 32 years.
GirishBaluja
ChiefOperatingOfficer-Corporate
Mr. Girish Baluja is the COO - Corporate at Moser Baer India Ltd. He has been associated with the
company since 2005. He oversees Corporate HR, Corporate R&D, Corporate Supply chain & Six sigma
initiatives. His responsibilities also include OM&T business (MBIL acquired this specialized Optical
Technology and R&D subsidiary of Phillips).
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BRAND ARCHITECHTURE
Moser
The Brand
Desired Brand PersonalityTrustworthy, Caring, Friendly,Futuristic, Smart, Confident,
Exciting, Youthful
Brand UtilityThe most reliable storage
media with which your data
is safe and sound
Core Brand Value
Dependable(rest assured with Moser)Innovative
Brand Attitude
The Expert(the technologyleader)
The Achiever
Moser
Therefore the brand positioning is:
Moser Baer The most reliable data storage media with whichyour data is safe and sound.
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OBJECTIVES
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Objectives
Following are the primary objective of my study
1. To understand how JIT is effective for effective production2. To study implementation of JIT at MoserbearSecondary objective of my study is as follows
1. To Study business of Mosetbear2. To SWOT Analyses Moserbear3. To study the JIT and its History
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RESEARCHMETHODOLOGY
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RESEARCH METHODOLOGY
Meaning of Research
Redman and Mory define research as a systemized effort to gain new knowledge.
Some people consider research as a movement, a movement from the known to unknown.
Research is an academic activity and as such the term should be used in a technical sense.
According to Clifford Woody, research comprises defining and redefining problems,
formulating hypothesis or suggested solutions, collecting, organizing and evaluating data
making deductions and reaching conclusions; and at last carefully testing the conclusions to
determine whether they fit the formulating hypothesis.
Objectives of research
The purpose of research is to discover answers to questions through the application of
scientific procedure. The main aim of research is to find out the truth which is hidden and
which has not been discovered yet. Though each research study has its own specific
purposes but the research objectives can be listed into a number of broad activities, as
following :-
1. To gain familiarity with a phenomenon or to achieve new insights into it. Studies with
this object in view are termed as exploratory or formulative research studies.
2. To portray accurately the characteristics of a particular individual, situation or group
.studies with this object in view are known as descriptive research studies.
3.To determine the frequency with which something occurs or with which it is associatedwith something else. Studies with this object in view are known as diagnostic research
studies.
4.To test hypothesis of a casual relationship between variables. Such studies are known as
hypothesis-testing research studies.
Significance of research
All process is born of in enquiry . Doubt is often better than over confidence , for it leads
to in enquiry and in enquiry leads to invention. Is a famous Hudson maxim in context of
which the significance of research can well be understood. Increased amounts of research
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make progress possible. Research inculcates scientific and inductive thinking and it
promotes the development of logical habits of thinking and organization .
The role of research in several fields of applied economics, whether related to as a business
or to the economy as a whole, has a greatly increased in modern times. The increasing
complex nature of business and government has focused attention on the use of research in
solving operational problems. Research , as an aid to economic policy , has gained added
importance , both for government and business.
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Research Methodology
Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. In it we study the
various steps that are generally adopted by a researcher in studying his research problem
along with the logic behind them. It is necessary for the researcher to know not only the
research methods or techniques but also methodology.
Data Source
The data can be collected from two sources, i.e. primary and secondary. I have collected
entire data of this project on Moserbaer Pvt. Ltd. from SECONDRY SOURCES like
websites, books, newspapers .
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DATA ANALYSIS
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LIMITATIONS
Although the project has been worked out at its best yet there are some
limitations , which cannot be overlooked. Had these limitations been overcome,
the findings would be accurate.Some of the limitations are :
1.Time constraint :
Time was really a limiting factor for the project . Its really difficult to work out
such a large project between two months time.
2. Data constraint :
All the data that has been collected for this project, has been taken from
secondary sources like websites, books and newspapers.
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Our near term strategy is to leverage our manufacturing base, customer relationship and the
explosive growth expected in the optical media segment to significantly enhance our global
share and retain and improve our leadership position within the industry. We believe, the
optical media industry in the medium term offers us sufficient growth opportunity with 53
52 capacity of 40MW, to ensure quality, low cost and uninterrupted power supply.
Integrated on a plant wide basis, diverse production machinery together to make available
output, yield, quality and other information available on a real time basis to better manage
the complex production process.
Expansion
During the year, the company completed its expansion in capacity form 0.8 Billion units to1.1 billion units, post the favourable outcome of the anti-dumping inquiry by the EC
(European Commission). Additionally, the company built manufacturing facilities, to house
the next phase of expansion, along with the required utilities and clean rooms. This will
enable the company to significantly reduce its time to market, and during FY04 capitalize
quickly on the growing DVD-R opportunity.
The investments already made, in the facilities, and infrastructure, along with
improvements in process technology, will enable the company to establish incrementalcapacity at an investment 25-30% lower than current capital costs. The capacity expansion
and technology progression initiatives are being conducted at the companys newest plant
in Greater Noida. The plant is equipped to produce all formats of optical media CD / DVD
(recordable, re-writeable and pre-recorded), Research and development In 2005-06 (FY03),
we invested Rs 176 Million (1.62 per cent of its sales) in research and development and
created an 80-member team of research professionals. A first-mover advantage, higher
realization and enhanced margins are likely to accrue form this investment in the long term.
Some of the benefits of our R&D program are enumerated below.
Introduced nine new products during the past 12 months.
One of the only two companies in the world to get a certification from Philips for
48x write media.
Developed 2x DVD R media
Developed high speed CD R/W media
Developed 2.4x DVD R/W
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Quality
Moser Baers quality commitment is enshrined in its Quality Policy:
We are committed to Excellence and Total Customer Satisfaction through Team Work,Ceaseless Innovation, and Timely Delivery of Quality Products ofInternational Standards.
Moser Baer has continuously created quality products through the intelligent use of
technology, committed human resources, and the extensive use of advanced statistical
techniques to monitor and control product quality. As a result of this we have surpassed
world-class quality standards, with defect ratio for some of our products approaching six
sigma levels. We moved closer to our vision to make the Made in India mark respected by
customers and a testimony of world-class manufacturing standard.Marketing
Moser Baer marketed a growing variety of products with a visible branding differentiation
in 2004-07. We gained the goodwill of existing and new customers by servicing them with
speed and sensitivity. Strict confidentiality of proprietary processes and delivery of
promised standards helped build strong customer loyalties. In house developed and
patented, packaging variations, enabled us to offer a visibly differentiated product offering
to customers.
Our share of the global market has grown from a mere 1% in 1999, to over 11 per cent in
FY02-03.
Marketing highlights, 2006-07
2 new major OEMs added to our list of customers.
Eleven of the worlds top twelve global brands sourcing from us.
We entrenched our presence in 36 new countries; balanced our large presence in Europe
with an increasing US and emerging market focus.
Value-added features/packaging were provided to
We shrank new product development time from 22 months to ten months Alliances
During the year, the company entered into a global alliance with Imation Corp, USA,
resulting in Imation sourcing a substantial part of their requirements of optical media from
Moser Baer. This sourcing deal estimated to be worth in excess of US$100 Million per
annum, is the single largest outsourcing deal ever entered into with an Indian company.
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Implementation Of JIT
Although the just-in-time (JIT) concept is very young, perhaps 10 to 15 years old in thiscountry, it is so widespread in American manufacturing and service. Perhaps this is
because the idea is so simple and so appealing. In short, the JIT strategy is to have "the
right product at the right place at the right time." It implies that in manufacturing or
service, each stages of the process produces exactly the amount that is required for the next
step in the process. This notion holds true for all steps within the system.
Suppose, for example, that all products pass through a drilling operation and then a milling
operation. With JIT, the drill produces only what the mill will need next. It also holds for
the last step that is, the system produces only what the customer desires.
Implementation of a JIT system typically includes emphasis on the following aspects of the
production process:
Production Smoothing Capacity Buffers Set-up Reduction Cross Training and
Plant Layout Total Quality Management Most of the companies today seek
this method of implementation: Form a top-level team:
This team's responsibilities include deciding upon an organizational structure and
developing a plan to implement JIT within the company. This plan should include the
company's goals concerning production, as well as how to establish this plan among all
employees (i.e. motivation & discipline) This plan then be used to establish the overall
philosophy of the company concerning JIT
To train the top management in the basic concepts of JIT:
This is the first step of the implementation process. It is very important to educate and train
the top-level management, as they are the ones who frame policies and get things moving.
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Benefits of JIT
Perhaps, the most significant benefit of JIT is to improve the responsiveness of the firms to
the market place thereby affording it an overwhelming advantage in competition. Specific
benefits will depend upon size of the market, technology of processes etc. Therefore, they
vary from organizations to organization.
One of the benefits of JIT is that with raw materials and WIP being processed in smaller
batches, errors can be easily identified and corrected quickly, during each stage of the
production process. This in turn has the 'knock-on'effects of reducing non-value added
costs
Conceptually, the JIT benefits could be grouped into the following categories;
Product Cost: This is greatly reduced of manufacturing cycle time, reduction of scraps,
inventories, space requirement, and material handling and eliminations of non-value
adding operations.
Quality: It has greatly improved due to fast detection and correction of defects, use of
automatic stop devices, higher quality of purchased parts,worker centered quality control
and statistical process control. Total preventive maintenance an d lower inventory levels
also help in quality improvements.
Design: Due to fast response to engineering change, alternative designs can be quickly
brought on the shop floor.
Productivity: Order magnitude productivity improvements are obtained due to the use
of flexible workforce, reduced rework, reduced inspection, reduced part delay and reduced
throughout time. Workers acquire multiple skills and become highly productive.
JIT systems have a number of other important benefits also, which are attracting the
attention of various companies. The main benefits are:
Reduced levels of in-process inventories, purchased goods, and finished goods.
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Reduced space requirements. Increased product quality and reduced scrap and rework. Reduced manufacturing lead times. Greater flexibility in changing the production mix. Smoother production flow with fewer disruptions. Worker participation in problem solving. Pressure to build good relationships with
vendors.
Increased productivity levels and utilization of equipment Reduction in the need for certain indirect labour.Just In Time (JIT) Manufacturing
Just in Time manufacturing is a systems approach to developing and operating a
manufacturing system. It is based on the total elimination of waste. JIT is not a new
concept. It has been part and parcel of the Japanese manufacturing industry adopted
approach for quite some time. It requires that equipment, resources and labor are made
available only in the amount required and at the time required to do the job. It is based on
producing only the necessary units in the necessary quantities at the necessary time by
bringing production rates exactly in line with market demand. In short, JIT means making
what the market wants, when it wants it. JIT has been found to be so effective that it
increases productivity, work performance and product quality, while saving costs.
JIT AND COSTS
JIT can affect the bottom line in a variety of ways. Improvement in quality and delivery
times can increase demand and, thus, revenue. Costs are also affected; the JIT philosophy
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contends that inventory reduction and increased quality reduce costs. Traditional cost
accounting Systems often makes it difficult to measure the effects of changes except in
very aggregate terms. One of the tenets of JIT is to account for these effects more
accurately.
Cost Accounting Systems
Costs are a major factor in PIM decisions. Unfortunately, traditional cost accounting
Systems often do not tell the decision maker how much a specific decision wilt affect
actual expenditures. This is due to overhead costs being hidden by the allocation methods.
For example, overhead costs usually are allocated to departments (cost centres) rather
than to activities, such as set-up, and inspection and maintenance operations. In addition,
allocation based on the material or directs labour required to manufacture an item ignores
the fact that different items are in different stages of their life cycles.
Thus, different items may have different manufacturing, engineering, and tooting costs,
may have quite different quality and inspection requirements, and may require different
marketing and distribution expenditures. When these costs are aggregated and allocated on
the basis of the average direct labour cost of a part-as is the case with most traditional cost
accounting systems-some products are allocated costs considerably below the actual
expenditures required for their manufacture and distribution and others are allocated more
than their true cost. Thus, decisions often are based on inaccurate information.
In order to manage costs and base decisions on accurate information, the causes (source) of
the expenditures must be identified. Various expenditure causes; such as set-up times, shop
and purchase order processing, receiving, and material handling deserve more discussion.
These basic causes of indirect costs are called cost drivers. The cost accounting system
must report the cost of these activities to accurately determine the costs of individual
products. Such reporting enables manufacturing management to treat set-up, inspection,
receiving, and transaction costs as direct costs, to base decisions on accurate information,
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and to focus on reducing high cost elements. An ABC analysis can be used to select the
activities that are appropriate for cost reduction studies.
Think of a company as a pipeline with raw materials entering at one end and products
emerging at the other.( the pipe can be extended conceptually with customer needs or
orders going in at one end and products arriving to customers at the other.)
The goal is to minimize the through put time, that is to move the materials as quickly as
possible Shorter throughput time is better But the pipeline varies in size and has
obstructions through out. Output is determined by the narrowest part of the pipeline and
the biggest obstruction.
These must be identified and then eliminated to achieve the goal. As each obstruction is
eliminated the flow speeds up but only by as much as allowed by the next biggest
obstruction elsewhere in the pipeline.
Identification and location of these obstructions, understanding them, and finding ways to
eliminate them are the purposes of JIT and TQM. The pipeline analogy may give an
impression those barriers to flow / production, once removed is gone forever. This is not
true. To identify the obstruction and its precise location in itself is difficult and time
consuming
Inventory as a way of avoiding problems
Sources of obstructions keep changing and it could be any one of the factors of production
and /or in any combination of the factors. One gets eliminated and another one crops up
and therefore it has got to be continuously attended to.
The pipeline itself and the things that floe through are changing always. The diameter of
the pipeline may have to be changed. But only the extent required. Over size is waste,while undersize would not meet the required throughput.
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The BEST flow rate would be that which matches the required output rate.
At times the pipeline itself may have to be modified or even replaced. As changingprocesses and products introduce whole new set of obstructions.
In short the work on the pipeline is CONTINUOUS. JIT and TQM continuously enable
tinkering the pipeline so that the material coming out of the pipeline is the best possible in
all respects.
JIT / TQM Difference in Organizations
JIT /TQM greatly increase the number of people who are involved in identifying and
eliminating obstructions. Every one does it Level of authority of workers to make and
carry out decisions is much higher Emphasis is on measure, diagnose, and improve it.
Second difference is in the process employed to identify and prioritise problems and
sources of waste
In JIT the primary process is reduction of inventory, mainly to reveal the obstructions
(which were earlier hidden or ameliorated by the inventory) and prioritise them.
Just in Time Summary
Efficient Techniques Reduce Leeway (Maintaining Continuity)
1. Prepare a disaster plan, e.g. firing protection or backing-up data. He believes thatthe better the disaster plan, the larger chance the companies will survive after
disaster.
2. Cost -reduction strategies.3. Develop long-term continuity plan.4. Identify critical functions and estimate the time, the company can afford without
such function.
5. Identify potential alternative suppliers.
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6. avoid too complicated continuity plan.7. Evaluate risk before any decision.8. Conducting continuity tests.
Just in Time --------- Manufacturing
(1) Introduction
Just in Time---manufacturing is a systems method to develop and operate a factory
system. It is mainly basis on the total Decrease of waste. As you know, many people
think JIT is not a new knowledge field. As a matter of fact, it has been part and plays an
important role of the Japanese manufacturing industry adopted method for a long time.
It requires all the materials such as equipment, human resources, and management skills
are made available only in the amount required and at the time required to do the job. It
is based on producing only the necessary units in the necessary quantities at thenecessary time by bringing production rates exactly in line with market demand.
Generally speaking, JIT means making what the market wants. JIT has been found to be
so effective that it increases productivity, work performance and product quality. What's
even more, it plays a vital role to increase productivity and decrease the total cost of
manufacturing production.
(2)Planning for JITSince each manufacturing process is different, it is up to the individual company to
determine the degree of appropriateness and the final application of JIT. However, it is
very important to define the plan and objectives before setting up a JIT manufacturing
system. It is impossible to establish a new JIT system that can be used successfully without
change. Therefore, we should take serious consideration to make a plan for Just-In- Time,
which will benefit to our factory performance.
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(3) Defining the PlanningJIT manufacturing system requires an understanding of the objectives of JIT, and
objectives of the JIT system. After the objectives are set up for the manufacturing, the
process of planning becomes one of determining what is required to meet those objectives.
The goal of a JIT approach is to develop a system that allows a factory to have only the
materials equipment and people by hand required doing the some plan. T o achieve this
goal, we should have equipped with at least five fundamental plan:
Integrating and optimizing every step of the manufacturing process Reducing
manufacturing cost Producing product on demand Developing manufacturing flexibility
Produce quality product to maintain commitments and links made between Customers
and Suppliers
We also should keep in mind that achieving these obtaining targets does not automatically
make a company a JIT manufacturer. On the contrary, it will lead to achieve even one of
these objectives will prevent a manufacturer from establishing a successful JIT system.
According to Common Wealth on May, 1996 report, it said that "A company cannot decide
to implement JIT; they must earn the right to use JIT by revising their quality for system."
(4)Reducing Manufacturing CostIf we can design products that it will speed up and decrease manufacturing processes.Gradually, it will help us to reduce the cost of manufacturing and building the product to
specifications benefit. One aspect in designing products for manufacture ability is the need
to set up a good boss and employee relationship. At least, this is to cultivate and procure
the resources of the production experts, and the line employees to develop cost saving
solutions. Participatory quality programs utilize employee knowledge about their job
functions and review the department performance. It will, finally, encourage with rewards
for suggested total cost saving.
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(5)Manufacturing FlexibilityAccording to China time report on August 1996. "Manufacturing flexibility is the ability to
start new projects or the rate at which the production mix can be adjusted to meet customer
demand." Planning for manufacturing flexibility requires the understanding of the elements
in the manufacturing process and understanding elements in the process that restrict
flexibility and improving on these areas. The unique feature of Just-In-Time is the
modification from between pull and push systems. The main idea behind these approaches
is that "work should not be pushed on to the next worker until that worker is ready for it."
(Hauser, J.R.) As a result, manufacturing flexibility requires production managers to
consider the some important factors, such as supplier lead time, production process time,
process setup time and so forth.
(6) Keep in touch between customers and suppliers
For factory main commitment to achieving the internal structures, both customer and
supplier are also playing a vital role to support JIT manufacturing. Because it is the
primary requirement for developing the JIT system, each other can establish trust and
honest between the supplier and the customer which is a must, since every Just-in-Time
operation depends on it. Supposed, finally, it leads to failure to keep the commitments each
other. Finally, it will be result to a serious form of breakdown manufacturing systems.
Therefore, we should pay attention to this kind of serious call. Never be ignorant of this
commitment. If we can make use of Just-In-Time (manufacturing approaches), it,
eventually, will attain those goal, which are the fundamental concept of producing product
only as needed or on demand.
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