Summer Project REPORT

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Summer Project REPORT On

“Development Suppliers through Lean Principles” (April, 2010 to June, 2010) Undertaken at

Submitted for the partial fulfillment of Post Graduate Diploma in Industrial Engineering  (PGDIE) Under the Guidance of 

Mr. Dhanaraj N Pundir HOD (DS/PUQ-SDT1-IN) Placements Bosch Limited Mumbai

Prof. A.K. Dean, NITIE,

Submitted by

Sudhir Kumar Roll No. 101, Class of 2012

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National Institute of Industrial Engineering Vihar Lake, P.O. NITIE, Mumbai-400087

CERTIFICATE

This is to certify that the project work titled “ Development of Suppliers through Lean Principles” has been successfully completed at BOSCH Group by ‘ Sudhir Kumar’ under  my guidance, in partial fulfillment of Post Graduate Diploma in Industrial Engineering at National Institute of Industrial Engineering (NITIE), Mumbai.

I wish him a bright and prosperous future.

Faculty Guide Prof. A.K. PUNDIR Associate Dean, Placement NITIE, Mumbai

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ACKNOWLEDGEMENT No academic endeavour can be single handedly accomplished. This work is no exception. Summer Internship gives an opportunity to apply the theoretical knowledge in the actual working conditions. I take the opportunity to extend my thanks to Bosch Limited, Bangalore for offering me platform to gain exposure and garner knowledge in the field of Operation Management and Supply Chain Management. At the outset I would like to record my gratitude to Mr. Syed Ehtesham Ahmed, Assistant Manager (HR) for initiating me in this training. I wish to extend my sincere and heartfelt gratitude to my project guide Mr. Dhanraj. N, HOD (DS/PUQ-SDT1-IN) for having made my summer training a great learning experience by their constant guidance, encouragement and extreme support. I would also like to thank Mr. Karthik B.S., Sr. Engineer (DS/PUQ-SDT1-IN) who helped me at all stages during this project and whose suggestions were indispensable all through my training and played a great role in making this a useful project . I would like to express my deep sense of gratitude to Mr. Raghuvendra, Sr. Engineer (DS/PUQ-SDT1-IN), Mr. Nikhil, Sr. Engineer  (DS/PUQ-SDT1-IN) and Mr. Biswajit Swain Sr. Engineer (DS/PUQ-SDT1-IN) for their  cooperation, valuable guidance and time to time consultation without which I couldn’t have completed my project. I have been extremely benefited by prestigious association as a summer intern with BOSCH Group. I also take immense pleasure in extending my thanks to my faculty guide Prof. A.K. Pundir, Associate Dean, Placement, NITIE, Mumbai for providing the valuable insight

[Type the document title] [Pick the date] during the project and for inspiring me to complete the project successfully. Finally, I would also like to acknowledge Bosch and it’s business associates for their support.

Sudhir Kumar  PGDIE 40, NITIE, Mumbai Summer Intern, BOSCH Limited

Executive Summary Daimler India Commercial Vehicle Pvt. Ltd. Is going to launch new commercial vehicle in two plateform HDT and LDT from mid of 2012. For any commercial vehicle, Frame Assembly is important and critical part. For smooth execution of frame assembly, I did gap analysis in frame assembly activities up to C-Sample (It’s a type of sample product in new product development cycle) delivery. Currently supplier is located in Mumbai and before D-Sample (It’s also sample product before start of production) delivery supplier  will stabilize a new frame assembly plant near DICV plant at Chennai. In Gap analysis DICV Goal should be specific and measurable. In this case, I have mapped the whole PSSM activities by data flow modeling tool with proper input, output, controller and mechanism. Analysis includes CFT, supplier, DICV schedule and review of  business documents as well as interviews with team members in various departments. Once all information has been gathered, I mapped whole activities in IDEF (integration definition) model and compared with standard activities along with time schedule of DICV to find the gaps and impacts. Also analyzed the gaps impact in the form of time, cost and quality by survey. By the priority of gap impacts, generated the ideas by brainstorming exercise and evaluated each idea on the basis of cost, risk, return and effectiveness. Approximate 2 yrs remaining for SOP (start of production) and there are so many activities remaining and for these activities different depts. will be involved in different level as RASIC form. So prepared the roles and responsibilities in the form of matrix to avoid any kind of ambiguity, and by this way company can save time, cost and also can deal with supplier in better manner. I did backward scheduling of all activities from supplier to all DICV depts. For next 2 yrs DICV & Supplier have mutually agreed project time line for frame assembly, which time schedule is created on the basis of most likely happening. There are some activities which are more critical as compared to other activities which can create over all delay in the project. For next 2 yrs I have prepared optimistic, most likely and pessimistic schedule and performed risk analysis on the basis of PERT execution. By this analysis I was able to find probabilistic completion of critical tasks DICV, PSSM, 14th Jun 2010 Page 7 of 38

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Sr. No. TABLE OF CONTENTS Page No. 1 Company Background 9 1.1 Global Presence 9 1.2 Vision and Core Value 10 1.3 Key Financial Result 11 1.4 Position in India (commercial vehicle segment) 12 1.5 Department Description 12 1.6 Need and Significance of the Project 13 2 Project Overview 13 2.1 Objective 13 2.2 Scope of the Project 14 2.3 Methodology of Study 16 2.4 Proposed Implication of the study 17 3 Academic Scope 17 3.1 Management techniques / Methodologies 17 4.1 Introduction to IDEF approach 18 4.2 Standard PSSM activities flow 19 4.3 Frame assembly execution mapping 19 5 Gap Analysis 19 5.1 Survey Form 19 5.2 Data Collection and Analysis 24 5.3 Brainstorming exercise result 25 5.4 Screening, analysis of Ideas and final recommendation 27 6 DFD Method 28 6.1 Major activities flow in departments 28 6.2 Department activities analysis in details 30 6.3 RASIC Methodology 32 6.4 PSSM RASIC chart 34 6.5 Backward Scheduling 35 6.6 DICV activities related to supplier activities and responsibility matrix 35 7 Project schedule and risk analysis 35 7.1 PERT Analysis 36 7.2 Probabilistic completion time of critical activity 36

[Type the document title] [Pick the date] Conclusion 3 8 Reference 39

[Type the document title] [Pick the date] 1. Background A. Company Profile a) Bosch Group-

The Bosch Group is a leading global supplier of technology and services. It offers products in areas of  Automotive Technology, Industrial Technology and Consumer goods & Building Technology. It was founded in 1886 in Germany as a “Workshop for Precision Mechanics and Electrical Engineering” by Robert Bosch. The BOSCH Group today is the largest automotive technology supplier in the world with presence across six continents. It has more than 350 subsidiaries, associated companies and 12000 service centers located in over 150 countries. OwnershipNinety-two percent of the shares in Robert Bosch GmbH are held by the charitable foundation Robert Bosch Stiftung.

Clients-

Partners-

[Type the document title] [Pick the date] b) Bosch Limited-

Robert BOSCH India was founded in 1951.With more than 22,500 employees RBIN is the largest manufacturer of diesel fuel injection equipment, auto-electrical, hydraulic gear pumps fir tractor applications, electric power tools, packaging machines, Blaupunkt car multimedia systems and security systems. In India Bosch Group operates with following companies. Robert Bosch GnbH holds 71.8 stakes in Bosch Limited. ➢ Robert Bosch Engineering and Business Solutions Ltd. ➢ Bosch Rexroth India Ltd. ➢ Bosch Chassis Systems India Ltd. ➢ Bosch Automotive Electronic India Pvt. Ltd. ➢ Bosch Electrical Drives India Ltd. Bosch Limited has the following manufacturing facilities in India. S. No. Plant Code

Presence Since

1.

BanP

1951

Bangalore

Multi, Single Cylinder Fuel Injection Pumps, Common Rail Pumps, VE Pumps

2.

NaP

1969

Nasik

Nozzles & Injectors, Common Rail Injectors

3.

NhP

1989

Naganathapura

Starter, Alternator, Spark Plug, Engine Cooling Fan

4.

JaP

1999

Jaipur

VE(Mechanical) Pumps for Domestic Mkt

5.

VraP

2007

Goa

Packaging Machines

Ten Years Financials

Location

Products

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Bosch BangaloreThe Company was shifted to Bangalore on 16th November 1953 premature Bosch was in Chennai. A letter of intent for diversification into auto electrical was received in the year 1985 and approval for the import of capital goods was also obtained. Added a number of new machines both at the Bangalore and Nasik factories during 1987 under the modernization program. Also a fourth generation on-line computer facility was installed at the Bangalore factory. The Company was awarded the status of  Trading House in the year 1988. The unit added A `Cold Start' facility enabling testing of engine at temperature as low as -20oc. The Centre was appointed as a Bosch Global Development Centre with the global responsibility for design and development of small single cylinder pumps for the entire Bosch Group. Bosch's centre had already developed a new type of single-cylinder pump for vehicular and stationary applications. During the year 1991 technical collaboration agreements were entered for the manufacture of fine horning machines and super finishing machines. In 1992, The Company introduced certain new items such as halogen bulbs, ignition cells, horns, voltage regulators, cluth plates and clutch cover assemblies for the automobile sector. A technical collaboration agreement was made with Witzig and Frank Turnatic GmbH for the mechanical machining systems. Another one agreement was entered with Robert Bosch GmbH, West Germany for the manufacture of bag form fill and sealing machines and also Bosch awarded the ISO 9001 certification by the Technischer Ueberwachungs-Verein, Germany. During the period 1994, two companies became the subsidiary of the Bosch Ltd, namely Motor Industries Software Services Ltd (MISSL) and Motor Industries Trading Ltd. Vision of Bangalore Plant: Our aim is to sustain profitable growth & market leadership through innovation and continuous improvement. We strive to exceed the expectation of our customers through technology, quality, speed and provide cost effective global solution for manufacture of products. Our associates and business partners participates in our endeavour and are motivated, informed, creative and open minded.

[Type the document title] [Pick the date] In our efforts, we are guided by Bosch Values. Our commitment for environment protection and our responsibility to the society. Mission of Bangalore Plant: How we work together  BeQIK: Quality is our most valued asset Innovation ensures business tomorrow Customer orientation inspires customers and associates Greater speed in everything we do Be Better: We want continuous improvement We want to be better than our competitors Be Bosch: We offer outstanding products and services Profit secures the growth and long term survival of our company

Bosch Global

Bosch India

Logo

Type

Public, GmbH (Gesellschaft mit  Public Limited beschränkter Haftung ) (English: company with limited liability )

Industry

Automotive, Automation, Major  Automotive & Industrial appliances, Packaging, Security Technology, Consumer Goods and Building Technology

Founded

15 November 1886

16 November 1953

Founder 

Robert Bosch

-

Headquarters

Gerlingen, Germany

Bangalore, India

Areas Served

Worldwide

Asia, Africa, Europe

Competitors

Delphi, Johnson Controls, Denso, Delphi, Denso, Siemens Bridgestone

Clients Partners

KLUEH Security GmbH, Kuehne + Nagel (AG & Co.) KG, Toom

BauMarkt GmbH

TATA Motors, Lombardini, Greaves, Kirloskar, TVS, M&M, Ashok Leyland, Bajaj, Force

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-

[Type the document title] [Pick the date] Franz Fehrenbach (Chairman)

VK Viswanathan (MD)

Products

Automotive parts, Power tools, Security systems

Inline Pumps, PF Pumps, Common Rail Pumps

Revenue

 €47.3 billion (2010)

6630 Crores (2010)

Employees

300,000 (2011)

22,500 (2011)

Website

www.bosch.com

www.boschindia.com

Key People

Business SectorsThe three business sectors of Bosch are- Automotive Technology, Industrial Technology and Consumer Goods and Building Technology. i) Automotive Technology ➢ Automotive Aftermarket Diesel Systems ➢ Gasoline Systems ➢ Diesel and Gasoline ECQ Systems ➢ Starter Motors and Generators ii) Industrial Technology ➢ Special Purpose Machines ➢ Packaging Technology iii) Consumer Goods and Building Technology ➢ Power Tools ➢ Security Systems

Diesel SystemsBosch in India is committed to develop diesel fuel injection products and provide services to meet the stringent emission norms of the future. For instance, Bosch’s inline fuel injection pumps could cater the full spectrum of diesel systems till BS-II. They are used in arrange of engines starting from small fixed installations to large earth

[Type the document title] [Pick the date] movers. By increasing pressure capability, improving timing control along with combustion optimization, the in-line pump is able to meet the next level of emission norms of BS-III in major part of country, thereby reducing CO emission by 50%. With the proposed introduction of BS-IV in 13 cities across India, requirement of  reduced emissions are quieter engines are making greater demand on the engine and the fuel-injection systems. These demands can be met by common rail fuel injection system that delivers fuel at a high pressure, precise quantity, precise timing and split into multiple injections. Moreover, electronic control in the common rail diesel fuel injection system increases flexibility making the system less polluting, more fuel efficient & capable of meeting future emission norms.

A. Need and the Significance of the Project Work-

Major products procured by the Bosch India are steels, castings, forgings, turned and machined parts, sintered components, fasteners, springs, bearings, assemblies, sub-assemblies, packing materials, logistic services and capital goods. To cover the full spectrum of Diesel Systems Bosch is committed to develop diesel fuel injection products that deliver the fuel at high pressure, with precise quantity & at precise timing; also their commitment is to provide services to meet the stringent emission norms of future. MICO Bosch purchasing department has to procure the materials from world class suppliers who can supply the goods at best prices. To ensure the adherence to procuring the world class product at an affordable price is a challenge. For the procurement of goods and services Bosch need strong innovative suppliers with whom they can interact in an open, fair and long term working relationship . Thus, Bosch, in the endeavor to sustain their market leadership, thinks that their  business partners form a significant part of their journey. Their strategy is to expose business partners to world class manufacturing practices and make them best in their class. They actively support their suppliers in continuously improving their expertise and respect them as independent businesses.

1. Problem Definition A. Objective- Bosch uses Indian office as an outsourcing destination for diesel

fuel injection equipment and pumps. Therefore, it has to meet the international standards set for engineering products in different countries. The project, “Development of Suppliers through Lean principles ” target improvement in quality, cost, & delivery. Under this project we have chosen an A-rated supplier, rated by Bosch itself, to bring out a culture change in its manufacturing system that matches with the vision of Bosch Limited and perfectly aligned with the goal of Bosch Production System and thereby improving the effectiveness of the plant, equipment, proces s through the empowerment of the people.

[Type the document title] [Pick the date] B. Scope- In the context of an increasing globalization of markets and of the

company they consciously embrace their  social responsibility. Company’s approach to purchasing and logistics is based on the UN basic principles of the Global Compact with regard to respect for human rights, working conditions, environment and strong action against corruption. The Purchasing and Logistics Guidelines form the framework for all purchasing and logistics activities are applied with the aim of balancing the fulfillment of  quality, cost and supply targets ( QKL). Bosch worldwide is driven by a unique philosophy of  BeQIK. This represents Bosch Group's commitment towards Best Quality, Innovation, Customer Satisfaction and Continuous Improvement. The project, “Development of Suppliers through Lean principles ” typically spread over a period of 6 months to 3 years. Among more than 350 suppliers Bosch had chosen around 178 potential suppliers. Out of those potential suppliers they had filtered 42 key suppliers and finally they select 7 preferred suppliers under the SDT projects to implement BPS. Under all these activities we have chosen M/s Neri, an A-Rated supplier by Bosch, to implement the TPM concepts on a bottleneck machine. It is engaged in manufacturing of  ----------- component used in the assembly of VE Pump.

C. MethodologyTo accomplish that challenge the company has set the following guidelines. Customer Satisfaction Quality ( Zero defect) Supplier Development (training and development) Fairness and Openness International Activities Systems Network Market and Products Environmental Responsibility Continuous Improvement Associate Development ¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬ ¬

As Bosch India procures large assortments it felt the need of dividing the purchasing department into two divisions. They are corporate logistics and purchase (CLP) and plant logistics and purchase (PLP). Corporate logistics and purchase division sources raw materials, standard components, trade goods and capital goods. They also ensure proper logistics contracts and customs clearance. The plant purchase department is responsible for plant specific parts, machined components, mechanical subassemblies and capital goods. Any company that wishes to become supply chain member of Bosch India should fulfill following criteria:

[Type the document title] [Pick the date] 1. All suppliers should be QS 9000 certified manufacturers. 2. The supplier should get A rating from the company. The rating methodology is given below S. No.

Audit Score

1.

90 to 100

2.

Ranking

Meaning

A

Full Compliance

80 to less than 90

AB

Mainly Complaint

3.

60 to less than 80

B

Conditionally Complaint

4.

Less than 60

C

Not Complaint

Restriction of range of analysis; concentration on

Product Family Selection Understanding how the plant currently work

Drawing of Actual State

[Type the document title] [Pick the date] Draft a common vision for an improved, customer oriented flow of 

Drawing of Target State Devising & implementing measures, inclusion in policy deployme Implementation

1. Academic Scope A. Management Techniques / Methodologies Likely to be UsedValue Stream Mapping, Value Stream Design, Vision, System CIP, 5S, Visual Management, TPM, Poka Yoke, Leveling, Response System, Point CIP, Flow Oriented Layout, FIFO, Cellular Manufacturing, Standardized Work, MOST, MTM, SMED, Consumption Control, Capacity Planning, System CIP, Point CIP B. Functional Areas/Subjects Expected to be spanned by Project Assignment 1. 2. System Efficiency and Improvement Techniques 3. Work System Design-I & II 4. Industrial Engineering 5. Ergonomics 6. Materials Management 7. Operation Planning & Control 8. Operation Research-I 9. Supply Chain Management 10.Service Management & Manufacturing System

1. Work Plan A. Identify the Distinguishable Stages / Milestones

VSD / VSM

[Type the document title] [Pick the date] Vision, Metric CIP Production Leveling Process Stabilization, Visualization Value Stream Design, Key Figures, Vision, System CIP

Flow Lot Size Production

Visual Management, TPM, Poka Yoke, 5S, Leveling, Response System, Point CIP

Full Production

Flow Oriented Layout, Standard Work, SMED, Consumption Control, System CIP, Point CIP

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