Presentation

on

Integrating
TQM , TPM & Lean Manufacturing
By
Mr.V.R. Janardhanam
President

Sundaram Brake Linings Limited Slide Number: 1

 OVERVIEW OF TVS GROUP
TVS Group was founded in 1911

Remains a family company

Grown to 27 Companies

Workforce of 25,000 Employees

Turnover of US $ 1.6 Billion

We are the largest auto component

manufacturers in India

Ethos of the Founder

Founder Commitment to customer
Shri T.V.Sundaram Iyengar
(1877 - 1955)
Commitment to employees

Commitment to society

Commitment to environment

Sundaram Brake Linings Limited Slide Number: 2

 OVERVIEW OF TVS GROUP
Tenets of TVS
TVS started as a transport company in 1921
Passion for punctuality in transport services

Prime focus to housekeeping

Optimize resources
World war surplus machines reconditioned to perform
like Original

5S and TPM was at work !!

Harmony with nature

Recycling of auto parts

Development of arid lands into orchards

Setting Management Standards- TVS Way
Quality education to family members
Working in shop floor Outside TVS fold
Working in shop floor - Within TVS group
Mentoring from senior member of the family for alignment with
TVS vision

High respect and importance for elders

Sundaram Brake Linings Limited Slide Number: 3

 SBL PROFILE

SBL was incorporated during 1974

as a joint venture with an American
company

Became 100% Indian company

during 1995.

SBLs basic philosophy is interwoven

with the TVS group philosophy of
Total customer satisfaction
Commitment to Quality, Service
and Reliability
Commitment to Employees and
Society at large

Sundaram Brake Linings Limited Slide Number: 4

 SBL PROFILE
PLANTS & PRODUCTS
SBL has three manufacturing plants one at Padi (Chennai),
two at TSK Puram (Madurai).

SBL manufactures friction materials for automotive and non-

automotive applications in Asbestos and Asbestosfree grades.

The principal products manufactured are

Drum brake linings

Disc brake pads

Moulded clutch facings

Woven clutch facings

Flexible rolls

Bonded Shoes

Sundaram Brake Linings Limited Slide Number: 5

 TQM
Why TQM?

THE SOLUTION

PROBLEMS
Stiff domestic market competition
OUR ASPIRATIONS
Poor response to customer requirements To become learning organisation
Process layout Toyota as role model
High set up time To make Made in India as symbol
for quality
Large batch production
Home grown technologies World
Huge inventories class standards
Lack of Ownership for Quality Go global
Inflexible manufacturing
Long lead-time
Strong departmental barriers
Declining profit

Sundaram Brake Linings Limited Slide Number: 6

 OUR TQM UMBRELLA
TOP MANAGEMENT COMMITMENT

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Sundaram Brake Linings Limited Slide Number: 7

TOTAL EMPLOYEE INVOLVEMENT OUR CULTURE

COMMON UNIFORM & COMMON CANTEEN TEMPLE FOR WORSHIP

AYUDHA POOJA CELEBRATED AS A FAMILY FUNCTION

Sundaram Brake Linings Limited Slide Number: 8

TOTAL EMPLOYEE INVOLVEMENT OUR CULTURE
NON-LEAVE TAKERS AWARD SERVICE AWARD

FOUNDERS DAY CELEBRATIONS RECOGNITION OF EMPLOYEES

TRANSPARENCY IN COMMUNICATION SAFETY FIRST

Sundaram Brake Linings Limited Slide Number: 9

PRO ACTIVE HRD & CONTRIBUTION TO SOCIETY

Training
EDUCATION & TRAINING
7%
A shop floor engineer deputed as 6%
Training-in-charge 5% 5.8% 6.0%
4%
Type of Training 3% Data Tracked 3.9% 3.9%
Not preserved 3.5%
On the job training 2%
Off the job training 1%
Outside seminars / lectures 0%
Overseas training 94-95 95-96 96-97 97-98 98-99 99-00 00-01 Now

TQM training by JUSE Counsellor and

learning's through cluster approach Suggestions per Employee

EMPLOYEE INVOLVEMENT 6
5.0
5
4

in Nos.
Suggestion scheme
3
2.0
Team approach 2
Problem solving 1 0.1
0
Continuous improvement
97-98 98-99 99-00 00-01

Sundaram Brake Linings Limited Slide Number: 10

PRO ACTIVE HRD & CONTRIBUTION TO SOCIETY
GREENING OF SBL USING RECYCLED WASTE WATER

NO.OF TREES 12,000

Percentage of Asbestos and Asbestosfree Air borne Asbestos level in the working
production environment
2.5
80% 71%
65% 65% 67%
70% 2
58%
60% 54%

Fibre/cc
50% 46% 1.5
42%
40% 35% 35% 33%
29% 1
30%
20% 0.5
0.32 0.31 0.31 0.27 0.27 0.26
10%
0
0%
95-96 96-97 97-98 98-99 99-00 00-01
95-96 96-97 97-98 98-99 99-00 00-01
Indian standard Actual International standard
Asbestos Asbestosfree

PIONEER IN ASBESTOSFREE IN INDIA SAFE WORKING ENVIRONMENT

Sundaram Brake Linings Limited Slide Number: 11

DAILY WORK MANAGEMENT Retainment and Improvement
5S, Exactness and Visualisation

GAUGE FOR INSPECTION

SEE THROUGH FACILITY FOR
EASY INSPECTION

MOTOR RUNNING INDICATION TOOL BOX

Sundaram Brake Linings Limited Slide Number: 12

DAILY WORK MANAGEMENT Retainment and Improvement
5S, Exactness and Visualisation

HOURLY OUTPUT BOARD CONTROL CHARTS

LIMIT SAMPLES CONTROL PLAN

Sundaram Brake Linings Limited Slide Number: 13
DAILY WORK MANAGEMENT - PDCA Customer Returns

1600 1451
1400 1227
1200

in ppm
Quarterly & Half yearly PDCA 1000
President
800 582
President/ Monthly PDCA 600
400 274 242
General Managers
200
Unit Managers Weekly PDCA 0
97-98 98-99 99-00 00-01 Now
Unit Manager/
Daily PDCA
Supervisors
Raw Material cost over Sales
Supervisors / Shift PDCA 57%
60%
Operators 51% 51%
49% 48% 49%
50% 46%
43%
Hourly PDCA 39% 38%
36% 36% 37%
Operators 40%
30%
20%
Key Characteristics

94
90

92

96

98

00

w
No
-
-

-
93
89

91

95

97

99
Opportunity for course correction Actual

365 times a year, 3 times a day Customer Line Stoppage

5
Achievement of Retainment 4

in days
Basis for improvement 3
2
Alignment with Business Plan 1
0 0 0 0 0 0 0
0
95-96 96-97 97-98 98-99 99-00 00-01 Now

Sundaram Brake Linings Limited Slide Number: 14

DAILY WORK MANAGEMENT For Managers - Managing Points and Checking Points

Accountability area : Quality

MP-CP Cascade
GM-Operations GM-Operations AGM-Operations Cell-in-Charge
Managing Point Checking Point / Checking Point / Checking Point

AGM-Operations Cell-in-Charge
Managing Point Managing Point
20 Non-Conformance Trend - Padi
20

No.of Lots
15
9
10

Customer 5

returns-SBL AC WK5 WK8 WK11 WK14 WK17 WK20 WK23 WK26

992K

SBL
Product audit
GM-Operations
non-conformance
Padi Plant
TSK Plants Padi Plant

Product audit
non-conformance
AGM-Operations Cell 1
* Countermeasures taken
for gap analysis
Cell 1 Cell 2 Cell 5 * Temperature of chiller
plant
Cell-in-Charge * Number of Poka Yokes
not working
Sundaram Brake Linings Limited Slide Number: 15
MANAGEMENT FOR OBJECTIVES GOAL CONGRUENCE
PADI UNIT - X-MATRIX FOR THE YEAR 2001-2002
Vision

Policy Establishment

Policy Deployment

Audits & Reviews

Vision in focus

Improvement in cross functional linkages among departments

Alignment of departmental Breakthrough actions to achieve company objectives

Sundaram Brake Linings Limited Slide Number: 16

QUALITY MANAGEMENT
Our R & D Facilities

Design quality
CFT approach for NPD

Four stage design review

Part approval process

Vendor quality
Vendor task force

Supplier QA manual/Training

Audit & Self certification
Conformance quality
Quality plans
Control charts
Daily, Weekly & Monthly PDCA
Audits and improvements
Process audit
Product audit
Scanning Electron Microscope
To improve product quality and
In developing new recipes
To understand size, shape,
microstructure and chemical
composition of raw materials and
products including competitor
products
Inertia Brake Dynamometer
Performance validation of the
product as per customer
requirements
Simulate the actual user condition
and to improve the performance,
wear and noise characteristics

Systems audit

Sundaram Brake Linings Limited Slide Number: 17

DEEP ANALYSIS
Deep analysis enables us in deep understanding of
Product technology

Manufacturing technology

Material technology

Tools and techniques used

CONTROL CHART
ONE WAY / TWO WAY LAYOUT
EXPERIMENTATION
SOURCE df S.S M.S F Cal F tab

Between
2 2.688 1.3442 19.019 3.21994
sigma mixers
7 QC Within sigma 42 2.968 0.0707
mixers
TOOLS
Total 44 5.6568 0.011
DESIGN OF EXPERIMENTS

Initial pressure REGRESSION ANALYSIS

Holding time Regression analysis - Thermal swell VS CFD % @ given resin level

2 1.4

Thermal swell in %
Interaction Number of
3 0.9
vents
Curing 1 4 6 7
5 0.4
pressure 6
2
7 8 9 10 11 12 13
2
14 15
y = -0.0162x + 0.3755x - 1.083 CFD% y = -2E-16x - 0.042x + 1.452
Interaction Curing 2
R = 0.3653 y = -0.0075x 2 + 0.185x - 0.03 R 2 = 0.4667
Final pressure R 2 = 0.2086
temperature
Holding time 7 8 9 Poly. (9) Poly. (8) Poly. (7)

Sundaram Brake Linings Limited Slide Number: 18

 PROCESS IMPROVEMENT
DEEP ANALYSIS ALRF DFM Process Curing Cycle Time
Reduction Trend - VCP
600 560 60

540 495 55

Time in Seconds
455 50

Cycles per Shift

Observation with respect to product and 480 430
40
45
45
420 370
process (Test of Hypothesis / ANOVA) 360
35
37 40

30 35
300
30
Identification of significant parameters (DOE) 240 25
180 20
Initial Stage 1 Stage 2 Stage 3 Stage 4
Understand type of relationship between
product and process Cycle Time Cycles per Shift

ALRF DFM Product - Blister Defect Trend

Optimisation of parameters (ANOVA / 6.00%
Regression) 5.00%

4.00%
Understanding of materials using SEM 3.00%

2.00%
Optimisation of materials 1.00%

0.00%
Validation
Apr-9 9 M a y- 9 9 Jun-9 9 J u l- 9 9 Aug-9 9 S e p- 9 9 O c t- 9 9 Nov-99 Dec-9 9 Jan-0 0 F e b- 0 0 M a r- 0 0 Apr-0 0 M a y- 0 0

PRODUCT IMPROVEMENT
Thermal Swell
Passenger Car Disc Brake Pad
Standardisation 4%

Thermal Swell in %
3%
3% 2.60%
2.20%
2% 1.80%
1.40%
1% 1% 1% 1% 1% 1%
1%

0%
Initial Stage 1 Stage 2 Stage 3 Stage 4 Stage 5

Customer request SBL

Sundaram Brake Linings Limited Slide Number: 19

TECHNOLOGY DEVELOPMENT
SLAB MOULDING PROCESS DIRECT FILL MOULDING PROCESS

Number of operations 13 Number of operations 10

Batch size 2500 Nos. Batch size 12 Nos.

Yield <70% Yield >80%

No.of new products / year 22 No.of new products / year 56

Set up time (Mts.) 360 Set up time (Mts.) 45

Raw material cost 43% Raw material cost 36%

Rejections 3.0% Rejections <1.0%

Process capability <1.33 Process capability >1.67

Sundaram Brake Linings Limited Slide Number: 20

TECHNOLOGY DEVELOPMENT
BRAKE LINING FOR TWO WHEELER INSITU BONDED BRAKE SHOE - ASBESTOSFREE

Number of vendor 2
Number of Subcontractor 0
Number of vendor 3 Tier 1 Supplier
Number of Subcontractor - 1 Yield >80%
Sundaram Brake Linings Limited Slide Number: 21
NEW PRODUCT DEVELOPMENT CASE STUDY
Product: Tractor Disc Brake Liner (Asbestos)
Problem: Low Product Life
Customer Requirement: Asbestosfree product with increased life

Methodology
Understand customer requirements

Formation of CFT (SBL, Tier 1 Customer, Vehicle

Manufacturer, End user)

Design review 1

FMEA & Experimentation

Design verification
Wet Ploughing operation
Design review - 2

Design validation

Design review 3

Joint field trials with customer

Design review 4

Part approval process

Pilot Supply Joint field trials with customer

Sundaram Brake Linings Limited Slide Number: 22
NEW PRODUCT DEVELOPMENT CASE STUDY
CASE STUDY RESULTS :-
Project Started : 01/12/1999
Samples given for field trials : 27/05/2000 - 177 days
Field trial results : 16/08/2000 - 79 days
Pilot supply : 18/09/2000 - 32 days

Results : Expected Actual

Life - Existing (Asbestos) 70 Hrs Min 50-80 hrs
Life - Asbestos Free (Based on 25 Vehicles) 100 Hrs Min 250 - 300 hrs
Cost / piece (Rs.): 23.74 24.10
Internal Rejection 3.0% 3.2%

EFFECTS OF NEW PRODUCT DEVELOPMENT

Sales from New Products Sales from New Products

100 12%
Percentage over Sales
90 84 10%
10% 9%
Value Rs.Millions

80
65 63
70 8% 7% 7%
60
50 40 6%
40
4% 3%
30 2%
20 12 12 1%
4 2%
10
0 0%
94-95 95-96 96-97 97-98 98-99 99-00 00-01 94-95 95-96 96-97 97-98 98-99 99-00 00-01

Sundaram Brake Linings Limited Slide Number: 23

COST / DELIVERY MANAGEMENT
Material flow management

Sundaram Brake Linings Limited Slide Number: 24

COST / DELIVERY MANAGEMENT
WIP TURN RATIO
Material flow management 400 366
350
281
Structured material flow management 300

NO.OF TIMES
244
250
Weekly Level 2 meeting
200 169 162 169

Chaired by President and attended by HODs 150

100
Decision on customer priority issues
50

Bi-weekly Level 3 meetings 0

95-96 96-97 97-98 98-99 99-00 00-01
Chaired by Unit Manager and attended by Cell Leaders
INVENTORY TURN RATIO
Raw Material -Indigeneous
Computer aided production planning system 90 80
80 74 72
Sales, Manufacturing and Sales Warehouse Linked electronically 70 60

NO.OF TIMES
59
60
Order acceptance, order details to Manufacturing and Sales Warehouse 50
46

40
Release of electronic kanban
30
Invoice and other documents to Customers 20
10
0
95-96 96-97 97-98 98-99 99-00 00-01
Kanban control within manufacturing
Press to finishing - Con-con loop INVENTORY TURN RATIO
Raw Material - Imported
Prefom to Press Kanban loop 160
139
140
Preform to Compounding Kanban loop 112

NO.OF TIMES
120
99
100 85
77 73
80
Raw Material Control system 60
Raw material to Manufacturing Two bin system 40
20
Raw material procurement Kanban / Milk run 0
95-96 96-97 97-98 98-99 99-00 00-01

Sundaram Brake Linings Limited Slide Number: 25

 COST / DELIVERY MANAGEMENT
TQM THROUGH LEAN AND TPM
LAYOUT IMPROVEMENTS
Passenger Car Finishing Cell

Before Now
Lean Manufacturing Improvements
Cell 1 Passenger car brake linings - Total
Passenger Car Brake Lining Finishing Cell
production lead time
2500 7 6.28
Productivity / Man / Shift

l Productivity per man per shift up by 424 % 2122

6
2000 l Floor space reduced by 50% 4.88
5
l Line scrap reduced from 10,000 PPM to
in days
1500 zero PPM 4

3 2.17
1000
1.8 1.65
2 1.54
500 321
1

0 0
92-97 Jul-97 Nov-97 M ar-98 Jul-98 Nov-98 M ar-99 Jul-99 Nov-99 M ar-2k Jul-2k Nov-2k M ar-01 Jul-01

Jun'99 Dec'99 Jan'00 Mar'00 Jul'00 Mar'01

Sundaram Brake Linings Limited Slide Number: 26

COST / DELIVERY MANAGEMENT Kaizens Trend - SBL

TQM THROUGH LEAN AND TPM 800

700 650
712
759

600
600 510
471
500

in Nos.
400 360
289 300
300
200
100
0
Jan-01 Feb-01 Mar-01 Apr-01 May-01 Jun-01 Jul-01 Aug-01 Sep-01

Breakdown Trend - SBL

8000
6945
7000
6000

in Minutes
5000
4000
3000 2481 2313
2000
1000
0
98-99 99-00 00-01

Machine Related Scrap Trend - SBL

0.70% 0.62% 0.60%
0.60%

0.50%
0.40%

0.30%
0.20%
0.08%
0.10%
0.00%
98-99 99-00 00-01

Sundaram Brake Linings Limited Slide Number: 27

 SBL Sales
EFFECTS OF TQM
1000
900
800
Compounded annual growth rate Sales 17.70% 700

Rs.Millions
600

Compounded annual growth rate Exports 46.37% 500

400
300
Export as percentage of sales - 39% 200
100
Profit before tax reached 12% in 1999-2000 0
89-90 90-91 91-92 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 '01-02

Profit before tax at 7% during 2000-2001 due to recession Sales Export Sales

Sales per Employee

1.2
Customer returns reduced to 242 PPM 1.0 1.0
1.0
New product sales went up to 10% of total sales 0.8 0.8

Value Rs. Millions

0.8 0.7 0.7 0.7
0.6 0.6 0.6
Internal rejections reduced from 6.2% to 1.40% 0.6
0.4
0.4
Raw material cost reduced from 57% to 36.3% 0.3

0.2
Inventory turn ratio increased from 6 times to 24 times
0.0
89-90 90-91 91-92 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01
Suggestion per employee increased to 5/ man / year Profit Before Tax
15% 12%
10%
10% 8% 8% 7%
7% 6% 7% 7%
6%
5% 3%

0%
89-90 90-91 91-92 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01

-5%

-11%
-10%

-15%

Sundaram Brake Linings Limited Slide Number: 28

 2001
Deming
prize
2000 2001
1999 Bonded Shoe ISO 14001
Technology
TPM

1999
QS 9000

1998
TQM CLUSTER
WITH JUSE SENSEI

MILESTONES IN OUR TQM JOURNEY

1997
Lean

1987
1996 TQM INITIATION
DFM Technology SQC Tools/ A' team

1995
ISO 9001 1990
1992 MSR / BSR
1992
ISO 9002
R & D Recognition

Sundaram Brake Linings Limited Slide Number: 29

 OUR FAITH

JUST DO IT !

THERE IS NO FINISH LINE !!

TQM IS AN ONGOING JOURNEY !!!

Sundaram Brake Linings Limited Slide Number: 30