22 June 2011 1 © Confederation of Indian Industry CII-AVANTHA Centre for Competitiveness for SMEs Harinder Jeet Singh Principal Counselor & Head “Building Quality Supply Base”
Jan 26, 2016
22 June 2011 1© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
Harinder Jeet Singh
Principal Counselor & Head
“Building Quality Supply Base”
22 June 2011 2© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
-10
-5
0
5
10
15
20
25
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
India - GDP growth % vs. Manufacturing contribution
GDP growth (annual %) Manufacturing, value added (% of GDP)
India : GDP Growth and Contribution of Manufacturing sector
Manufacturing sector contribution to GDP has always been consistent
Source : World Bank
“Building Quality Supply Base”
22 June 2011 3© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
India’s Manufacturing Competitiveness
Indian Manufacturing positioned for a higher growth rate
India as a manufacturing hub
Proven Product Development Capabilities
Stable Economic Policies
Large and growing domestic demand
Availability of manpower
Proximity to Markets
High Quality Standards
Competitive Manufacturing Cost
Export Potential
“Building Quality Supply Base”
22 June 2011 4© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
Some interesting facts about Indian MSMEs
• 8% contribution towards India’s GDP
• Account for 45% of manufacturing output
• More than 26 million spread 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
Unleash the hidden potentialSource : MSME Annual Report 2009-10
(Supply Base)
“Building Quality Supply Base”
22 June 2011 5© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
?
Improve Productivity
?
Improve Quality ?
Maximize Production
?
Technology up?
Energy saving?
Mfg Cost reduction?
Revenue generation?
What is Quality Supply Base all about ? “Building Quality Supply Base”
22 June 2011 6© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
?
Improve Productivity
?
Improve Quality ?
Maximize Production
?
Technology up?
Energy saving?
Mfg Cost reduction?
Revenue generation?
What is Quality Supply Base all about ?
PEOPLE
and SYSTEMS
PEOPLE
and SYSTEMS
Too many parameters to work upon ?
“Building Quality Supply Base”
22 June 2011 7© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
Standardized work
Use Techniques & Technology in process
improvements
Prevention systems
Feedback and control systems
Customer supplier relation building
Element # 1
Systems robustness – the first step
“Building Quality Supply Base”
22 June 2011 8© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
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
“Building Quality Supply Base”
22 June 2011 9© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
A Work Standard Example
Explanatory Photographs
Explains the quality, safety & standard related points
Explains the operation sequence
“Building Quality Supply Base”
22 June 2011 10© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
Standardized work
Use Techniques & Technology in process
improvements
Prevention systems
Feedback and control systems
Customer supplier relation building
Element # 1
“Building Quality Supply Base”
22 June 2011 11© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
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
“Building Quality Supply Base”
22 June 2011 12© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
Standardized work
Use Techniques & Technology in process
improvements
Prevention systems
Feedback and control systems
Customer supplier relation building
Element # 1
“Building Quality Supply Base”
22 June 2011 13© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
Prevention systems
– Extracting the advantage of technology & automations
– Shift from Time based to Cycle Based maintenance
– Process Maintenance
Element # 1
“Building Quality Supply Base”
22 June 2011 14© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
Standardized work
Use Techniques & Technology in process
improvements
Prevention systems
Feedback and control systems
Customer supplier relation building
Element # 1
“Building Quality Supply Base”
22 June 2011 15© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
Feedback and control systems
Traceability
Visual control – Seeing is believing
IT enabled Quality & production control systems
Element # 1
“Building Quality Supply Base”
22 June 2011 16© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
Visual control in material identificationVisual control in material identification
“Building Quality Supply Base”
Visual control – “Seeing is believing”Visual control – “Seeing is believing”
22 June 2011 17© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
Visual Communication of an Abnormality
“Building Quality Supply Base”
22 June 2011 18© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
• Safe and comfortable
• Engagement of People
• Imbibe Daily Work Management
Element # 2
Bringing the Ownership
“Building Quality Supply Base”
22 June 2011 19© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
• Safe and comfortable work environment
• Engagement of People
• Imbibe Daily Work Management
Element # 2
“Building Quality Supply Base”
22 June 2011 20© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
Safe and comfortable work environment
Spot coolersSpot coolers
Heat resistant protective gearHeat resistant
protective gear
Comfortable safety shoesComfortable safety shoes
Casting shop:
Adverse Conditions:
1.Molten metal handling
2.55C ambient temperature
3.Working with die temperature of 350C
Air regulatorAir regulator
“Building Quality Supply Base”
22 June 2011 21© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
Daily Management System
Role Clarity
Development through collaborative approach
- Openness to provide and implement ideas
Higher the levels – wider the focus
“Building Quality Supply Base”
22 June 2011 22© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
Higher the levels – wider the focus
Observation by Supervisors
Observation by
Executives
Observation by
Manager
Observation by
Plant Head
View by
various levels
View by
various levels
Check on Check function responsibility at every levelCheck on Check function responsibility at every level
“Building Quality Supply Base”
22 June 2011 23© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
Communication across level
Skill management – Multiskilling & structured training
Capability building - Development of specialists
Build systems adaptive to changes
Element # 3
“Building Quality Supply Base”
22 June 2011 24© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
Build systems adaptive to changes
Element # 3
Communication across level
Skill management – Multiskilling & structured training
Capability building - Development of specialists
“Building Quality Supply Base”
22 June 2011 25© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
Communication across levels
Seamless communication
Change control displays
Element # 3
“Building Quality Supply Base”
22 June 2011 26© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
Dept. Head’s Monthly Communication Meeting
Seamless Communication2-way Communication at all levels
Dept. Head’s Daily Communication Meeting
“Communication is the real work of leadership.”
“Building Quality Supply Base”
22 June 2011 27© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
Build systems adaptive to changes
Element # 3
Communication across level
Skill management – Multiskilling & structured training
Capability building - Development of specialists
“Building Quality Supply Base”
22 June 2011 28© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
Model of Manufacturing ExcellenceS
usta
inab
ilit
yS
usta
inab
ilit
yInvolvementInvolvement
Ow
ners
hip
Ow
ners
hip
IntegrationIntegration
“Building Quality Supply Base”
22 June 2011 29© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
“Building Quality Supply Base”
The approach
• Getting Together
• Learning together
• Achieving together
Building Quality Supply Chain
By
CII - CLUSTER
22 June 2011 30© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
Employee Quality (TEI)• 3M• 5S• Kaizen, Suggestion Scheme• Cost Consciousness
Equipment Quality• Model Machine• Breakdown Reduction
Management System • H R Management• Cost Management• Energy Management• SMED• MIS - Key Indicators
Product Performance• Flow Manufacturing• Problem solving• Poka Yoke• Product Profitability
Motivated Employees
HealthyEquipments
Good Management Practices
Reliable Quality &Delivery at low cost
Com
peti
tive
ness
“Building Quality Supply Base”
CII – CLUSTER ROAD MAP
22 June 2011 31© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
“Building Quality Supply Base”
22 June 2011 32© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
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
“Building Quality Supply Base”
22 June 2011 33© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
Not Right First TimeNot Right First Time Stock Turnover (Inventory Turn Ratio-ITR)Stock Turnover (Inventory Turn Ratio-ITR) Delivery Schedule AchievementDelivery Schedule Achievement Floor Space UtilizationFloor Space Utilization 5S5S Quick Changeover- Customer ResponseQuick Changeover- Customer Response SafetySafety AbsenteeismAbsenteeism No. of suggestions per employeeNo. of suggestions per employee Employees involved in Improvement ActivitiesEmployees involved in Improvement Activities Cost of Internal Non-conformitiesCost of Internal Non-conformities Machine Breakdown (Hours)Machine Breakdown (Hours) Machine Breakdown (Frequency)Machine Breakdown (Frequency) Energy Cost SavingsEnergy Cost Savings
KEY INDICATORS FOR SUPPLY CHAIN
“Building Quality Supply Base”
22 June 2011 34© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
Major Benefits CII - Cluster
“Building Quality Supply Base”
CII – MOHALI CLUSTER BENEFITS
22 June 2011 35© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
Major Benefits CII - Cluster
“Building Quality Supply Base”
CII – JALANDHAR CLUSTER BENEFITS
Turnover Range of Cos – Rs 10 Crores to Rs 35 Crores Product Profile of Cos – Hand Tools
Tangible Results (Avrg) of Jalandhar Cluster
+ Before Joining the cluster # One year after joining the cluster
><
><
><
Total Savingsachieved byCluster companies- Rs. 9.5 Crores
22 June 2011 36© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
Major Benefits CII - Cluster
“Building Quality Supply Base”
CII – GURGAON CLUSTER BENEFITS
Turnover Range of Co’s – Rs 2 Crores to Rs 25 Crores Product Profile of Co’s – Auto Components
Total Savings achieved by Cluster companies - Rs. Crores2.5
22 June 2011 37© Confederation of Indian Industry
CII-AVANTHA Centre for Competitiveness for SMEs
Any Queries can be forwarded to