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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/PUQSDT1-IN) and Mr. Biswajit Swain Sr. Engineer (DS/PUQ-SDT1-IN) for their cooperation,
valuable guidance and time to time consultation without which I couldnt 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 during the
project and for inspiring me to complete the project successfully. Finally, I would also like to
acknowledge Bosch and its business associates for their support.

Sudhir Kumar

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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 (Its a type of sample product in
new product development cycle) delivery. Currently supplier is located in Mumbai and
before D-Sample (Its 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
Conclusion 3 8
Reference 39

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1.
A.

Background

Company Profile
a) Bosch GroupThe 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-

b)

Bo
ch

s
LimitedRobert 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.

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Bosch Limited has the following manufacturing facilities in India.
S. No. Plant
Code
1.
BanP

Presence
Location
Since
1951
Bangalore

2.
3.

NaP
NhP

1969
1989

4.
5.

JaP
VraP

1999
2007

Multi, Single Cylinder Fuel Injection Pumps,

Common Rail Pumps, VE Pumps
Nasik
Nozzles & Injectors, Common Rail Injectors
Naganathapura Starter, Alternator, Spark Plug, Engine
Cooling Fan
Jaipur
VE(Mechanical) Pumps for Domestic Mkt
Goa
Packaging Machines

Ten Years Financials

Sales Trend

Sales (Rs. Billion)

Products

70
60
50
40
30
20
10
0

Years

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Sales Trend

Sales (Rs. Billion)

70
60
50
40
30
20
10
0

Years

Total Sales & Export Trend

Sales (Rs. Billion)
of which Export Sales (Rs. Million)
60000
40000

Sales (Rs Million) 20000

0

Years

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Profit Before Tax

PBT (Rs. Million)
10000

PAT (Rs. Million)

5000
0

Years

Profit After Tax

PAT (Rs. Million)
8000
6000

PAT (Rs. Million)

4000
2000
0

Years

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Market Segment as %Shares of Sales

*Asia Pacific; 23%

Americas; 18%

Europe; 59%

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,

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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.
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

Industry
Founded
Founder
Headquarters

Public, GmbH (Gesellschaft mit Public Limited

beschrnkter Haftung) (English:
company with limited liability)
Automotive, Automation, Major Automotive & Industrial
appliances, Packaging, Security Technology, Consumer Goods
and Building Technology
15 November 1886
16 November 1953
Robert Bosch
Gerlingen, Germany
Bangalore, India

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Areas Served
Competitors

Clients

Worldwide
Asia, Africa, Europe
Delphi, Johnson Controls, Denso, Delphi, Denso, Siemens
Bridgestone
KLUEH Security GmbH, Kuehne +
Nagel (AG & Co.) KG, Toom
-

TATA Motors, Lombardini,

Greaves, Kirloskar, TVS, M&M,
Ashok Leyland, Bajaj, Force
-

Franz Fehrenbach (Chairman)

Automotive parts, Power tools,
Security systems
47.3 billion (2010)
300,000 (2011)
www.bosch.com

VK Viswanathan (MD)
Inline Pumps, PF Pumps,
Common Rail Pumps
6630 Crores (2010)
22,500 (2011)
www.boschindia.com

BauMarkt GmbH
Partners
Key People
Products
Revenue
Employees
Website

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

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Business Divisions as %Shares of Sales

*Consumer Goods and Building Technology; 27%

Automotive Technology; 59%

Industrial Technology; 14%

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, Boschs 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
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.

B.

Need and the Significance of the Project WorkMajor 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

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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.
2.

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, process through the
empowerment of the people.
B. Scope- In the context of an increasing globalization of markets and of the

company they consciously embrace their social responsibility. Companys

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.

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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:
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.
1.
2.
3.
4.

Audit Score
90 to 100
80 to less than 90
60 to less than 80
Less than 60

Ranking
A
AB
B
C

Meaning
Full Compliance
Mainly Complaint
Conditionally Complaint
Not Complaint

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Supplier Relationship Process

Cost of select suppliers and develop/maintain contracts
process per $1,000 revenue
Number of employees per $1,000 of purchases
Percentage of purchase orders approved electronically
Average time to place a purchase order
Total number of active vendors per $1,000 of purchases
Percentage of value of purchased material that is supplier
certified
Restriction of range of
analysis; concentration
on type A
Product Family Selection
Understanding how the
plant currently works
Drawing of Actual State

Drawing of Target State

Implementation

Draft a common vision

for an improved,
customer oriented flow of
materials & information

Devising & implementing

measures, inclusion in
policy deployment,
regular PDCA Cycle

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3.

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. System Efficiency and
Improvement Techniques
2. Work System Design-I & II
3. Industrial Engineering
4. Ergonomics
5. Materials Management

6.
7.
8.
9.

Operation Planning & Control

Operation Research-I
Supply Chain Management
Service Management &
Manufacturing System

10.
4. Work Plan
11.
A. Identify the Distinguishable Stages / Milestones
12.
13.

14.
VSD / VSM
15.
16.
Vision, Metric
17.
18.
19.
20.
21.
22.
23.
24. Value Stream Design,
25. Key Figures,
26. Vision,
27. System CIP
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.

CIP
Production Leveling
Process Stabilization, Visualization
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

42.

43.
44.
45.
46.
47.
48.
49.
50.
51.
52.

53.

Team Work and Continuous Improvement