Bharat Forge- Reshaping the Shopfloor

BHARAT FORGE – RESHAPING THE SHOPFLOOR

Presented By: KIRAN KUMAR BORRA

• Founded in 1961 by Dr.N.A.Kalyani.

• Bharat Forge Limited (BFL) is a part of Kalyani Group.

• Bharat Forge Limited (BFL), the Pune based Indian multinational is a technology driven global leader in

metal forming, having a transcontinental presence across eight manufacturing locations, serving several

sectors including automotive, power, oil and gas, construction & mining, locomotive, marine and

aerospace.

History

• 1995 economic growth started slowing.

• Waning domestic demand.

• Strategy driven for survival by export.

• Unprepared to export market.

• Investing in implementing forging pressing machinery.

• Meeting both national and international market demand.

• Targeted was sustaining the life of the die.

• Replacement of manpower to computer base. But this transformation process was not just

restricted to technology.

Summery of the case study (2003)

• BFL replaced its multiple level organization with three layered structure.

• Transformed into task oriented to organization goal oriented.

• Provided voluntary retirement scheme was offered to older workforce.

• Encourage fresh talent's.

• Change in forging manual designing process by implementing CAD/CAM process.

• Made an decentralized process.

• Achieve the customer satisfaction and increase the level of customers.

• And become an global leader.

• BFL turned itself downside up, in just two years, BFL has managed to double its

international customer base from 10 companies in march 2001 to march 2002.

Continuing….

HURDLES FACED BY BHARAT FORGE

• Economic growth started slowing.

• Outdated technology.

• Time taken for designing the product.

• Duration of problem solving 3- 4 days.

• Unprepared to service the export market.

• Changing the mind set of its people.

• Middle management layers.

• Computer functionalities.

• Organizer.

• Fast communication & information.

• Employee relationship.

• Networking with customers.

• Cost reduction.

BENEFITS TO BHARAT FORGE

• Type : Private Company (BSE & NSE)

• Industry : Forging, Metals, Machinery, Engineering.

• Headquarters : Pune, Maharashtra, Chennai (Madras), New Delhi, Mumbai, Kolkata, Jamshedpur, Bangalore, INDIA.

• Key person : Baba Kalyani Chairman

• Revenue : Rs. 33,992 million (2014)

• Number of employee: 10,000 (2012)

Present scenario of BHARAT FORGE

Major competitors

• Aditya Forge Ltd

• Ahmednagar Forgings Ltd

• BCL Forgings Ltd

• EL Forge Ltd

• Hilton Metal Forging Ltd

• LGB Forge Ltd

• M M Forgings Ltd

• Mahindra Forgings Ltd

• Micro Forge (India) Ltd

• SS Forging And Engineering Ltd

• Bharat Forge Limited, India Awarded ‘Sword Of Honour’ For Safety Success

• BFL Awarded 'Five Star Rating' By The British Safety Council,UK.

• Mr. Zope,group CIO Awarded As 'Great Ciso’s Of India'

• Bharat Forge Wins Manufacturing Today's "Excellence In Technology Award 2013"

AWARDS EARNED BY BHARAT FORGE IN 2013

BHARAT FORGE TRANSCONTINENTAL MANUFACTURING LOCATIONS

Q-1 what characteristics do global customers look for and how did Bharat Forge go about achieving the same?

•Global Customer are looking for : Quality of the performance,Intime delivery.

•How BFL achieve :By implementing pressing machine in forge line.

Questions and Answers

Q-2 Where is the reference in the case to empowerment of employees and creation of CFTs ?

What advantages can an organization achieve from the same?

The reference of the case will explain that

Empowerment of employees:-

•Providing voluntary retirements scheme and encouraging new talents.

(engineers, computer literature etc.)

CFTs (Cross Functional Team) :-

•Improve coordination and integration.

•Increase organization span.

• Reduce production cycle time

• People from different disciples can improve problem solving and decision making.

• It also helps in achieving customer satisfaction and corporate goals

The same will give the advantage to the organization.

Q-3 Refer from the case the lean concepts. What advantage it has brought about to

BFL?

•From referring the case the lean concepts will explain that the middle management and delayer the system to make it lean. So, it is replaced with 3

layered structure.

Advantage of BFL:-

•Increase in productivity

•Reducing the wastage

•Optimal utilization of resources

•Helps in achieving the organization goals.

Q-4 Relate from the case the two concepts we have learnt in TQM. (1) Quality is

free. (2) productivity, quality & costs go hand in hand?

•Quality is free : Reducing the cost of poor quality & preventing defects cost include failure

cost.

•Productivity, Quality and costs go hand in hand.