Harinder Jeet Singh Principal Counselor & Head

1.      “Building Quality Supply Base” Harinder Jeet Singh Principal Counselor & Head

2. “Building Quality Supply Base” India : GDP Growth and Contribution of Manufacturing sector Source : World Bank Manufacturing sector contribution to GDP has always been consistent

3. “Building Quality Supply Base” India’s Manufacturing Competitiveness Proven Product Development Capabilities Proximity to Markets Stable Economic Policies High Quality Standards India as a manufacturing hub Large and growing domestic demand Competitive Manufacturing Cost Availability of manpower Export Potential Indian Manufacturing positioned for a higher growth rate

4. “Building Quality Supply Base” Some interesting facts about Indian MSMEs (Supply Base) • 8% contribution towards India’s GDP • Account for 45% of manufacturing output • More than 26 millionspread over the country • Producing 6000+ products • Employment to 59 million+ people • Share 40% to national exports currently • Growing at 35% over the last 2 years Unleashthe hidden potential Source : MSME Annual Report 2009-10

5. “Building Quality Supply Base” What is Quality Supply Base all about ?

6.  “Building Quality Supply Base” What is Quality Supply Base all about ? PEOPLE and SYSTEMS Too many parameters to work upon ?

7.  “Building Quality Supply Base” Element # 1 • Standardized work • Use Techniques & Technology in process improvements • Prevention systems • Feedback and control systems • Customer supplier relation building Systems robustness – the first step

8. “Building Quality Supply Base” Standardization as Base • Start with work standards - First • Need based updation of standards • Work instructions in local languages • Visual standards • Reaching the mass is the key • Focus on standardization while building capacities

9. “Building Quality Supply Base” A Work Standard Example Explanatory Photographs Explains the operation sequence Explains the quality, safety & standard related points

10.  “Building Quality Supply Base” Element # 1 • Standardized work • Use Techniques & Technology in process improvements • Prevention systems • Feedback and control systems • Customer supplier relation building

11. “Building Quality Supply Base” Element # 1 • Use Techniques & Technology in process improvements • 5S, 3M, SMED • Quality Circle tools • Kaizen • Value Stream Mapping (VSM) • Failure modes and effects analysis (FMEA) - Special focus on Low cost automations

12. “Building Quality Supply Base” Element # 1 • Standardized work • Use Techniques & Technology in process improvements • Prevention systems • Feedback and control systems • Customer supplier relation building

13. “Building Quality Supply Base” Element # 1 • Prevention systems • Extracting the advantage of technology & automations • Shift from Time based to Cycle Based maintenance • Process Maintenance

14.  “Building Quality Supply Base” Element # 1 • Standardized work • Use Techniques & Technology in process improvements • Prevention systems • Feedback and control systems • Customer supplier relation building

15. “Building Quality Supply Base” Element # 1 Feedback and control systems • Traceability • Visual control – Seeing is believing • IT enabled Quality & production control systems

16. “Building Quality Supply Base” Visual control – “Seeing is believing” Visual control in material identification

17. “Building Quality Supply Base” Visual Communication of an Abnormality

18. “Building Quality Supply Base” Element # 2 • Safe and comfortable • Engagement of People • Imbibe Daily Work Management Bringing the Ownership

19. “Building Quality Supply Base” Element # 2 • Safe and comfortable work environment • Engagement of People • Imbibe Daily Work Management

20.  “Building Quality Supply Base” Safe and comfortable work environment Spot coolers Casting shop: Adverse Conditions: Molten metal handling 55C ambient temperature Working with die temperature of 350C Heat resistant protective gear Air regulator Comfortable safety shoes

21. “Building Quality Supply Base” Daily Management System • Role Clarity • Development through collaborative approach - Openness to provide and implement ideas • Higher the levels – wider the focus

22. “Building Quality Supply Base” Higher the levels – wider the focus View by various levels Check on Check function responsibility at every level

23. “Building Quality Supply Base” Element # 3 • Communication across level • Skill management – Multiskilling & structured training • Capability building - Development of specialists Build systems adaptive to changes

24. “Building Quality Supply Base” Element # 3 • Communication across level • Skill management – Multiskilling & structured training • Capability building - Development of specialists Build systems adaptive to changes

25. “Building Quality Supply Base” Element # 3 • Communication across levels • Seamless communication • Change control displays

26.  “Building Quality Supply Base” Seamless Communication 2-way Communication at all levels Dept. Head’s Monthly Communication Meeting Dept. Head’s Daily Communication Meeting      “Communication is the real work of leadership.”

27. “Building Quality Supply Base” Element # 3 • Communication across level • Skill management – Multiskilling & structured training • Capability building - Development of specialists Build systems adaptive to changes

28. “Building Quality Supply Base” Model of Manufacturing Excellence Involvement Sustainability Ownership Integration

29. CII - CLUSTER “Building Quality Supply Base” Building Quality Supply Chain • The approach • Getting Together • Learning together • Achieving together By

30. CII – CLUSTER ROAD MAP “Building Quality Supply Base” • Product Performance • Flow Manufacturing • Problem solving • Poka Yoke • Product Profitability Reliable Quality & Delivery at low cost P • Management System • H R Management • Cost Management • Energy Management • SMED • MIS - Key Indicators Good Management Practices A D Competitiveness • Equipment Quality • Model Machine • Breakdown Reduction C Healthy Equipments • Employee Quality (TEI) • 3M • 5S • Kaizen, Suggestion Scheme • Cost Consciousness Motivated Employees

31.  “Building Quality Supply Base”

32. “Building Quality Supply Base” Cluster Methodology • Assessment & short Listings • Kick-off • Common Training Programmes • Individual handholding visits by counselors • Review Meetings in the premises of one of the companies followed by visit to the company. • Documentation and sharing of improvements • Closing ceremony

33.  “Building Quality Supply Base” KEY INDICATORS FOR SUPPLY CHAIN • Not Right First Time • Stock Turnover (Inventory Turn Ratio-ITR) • Delivery Schedule Achievement • Floor Space Utilization • 5S • Quick Changeover- Customer Response • Safety • Absenteeism • No. of suggestions per employee • Employees involved in Improvement Activities • Cost of Internal Non-conformities • Machine Breakdown (Hours) • Machine Breakdown (Frequency) • Energy Cost Savings

34. CII – MOHALI CLUSTER BENEFITS  “Building Quality Supply Base” Major Benefits CII - Cluster

35. Turnover Range of Cos – Rs 10 Crores to Rs 35 Crores Product Profile of Cos – Hand Tools CII – JALANDHAR CLUSTER BENEFITS Tangible Results (Avrg) of Jalandhar Cluster + Before Joining the cluster # One year after joining the cluster  “Building Quality Supply Base” Major Benefits CII - Cluster

36. Turnover Range of Co’s – Rs 2 Crores to Rs 25 Crores Product Profile of Co’s – Auto Components CII – GURGAON CLUSTER BENEFITS  “Building Quality Supply Base” Major Benefits CII - Cluster

37. Any Queries can be forwarded to ciicfc@cii.in