SUPPLIER CLUSTER
for
F 14
Suhas Gokhale
Mahindra & Mahindra
Supplier Quality AssuranceSector AD
9881075056
Automotive Sector
Cluster member details
Sr.
No.
Supplier
name
Contact
person
Mobile no.
E mail ID
1
2
3
4
5
6
Automotive Sector
M & M contact details
Sr. No. Contact person
1
Suhas Gokhale
Mobile no.
E mail ID
9881075056
GOKHALE.SUHAS@mahindra.com
2
3
4
Consultant contact details
Sr. No. Contact person
Mobile no.
E mail ID
1
Automotive Sector
CLUSTER METHODOLOGY

INTERACTIONS and INTERFACES are
– Common Trainings
– Hand Holding Visits
– Monthly Review Meetings
– Plant Visits to Tier II Suppliers (need based)
Automotive Sector
COMMON TRAININGS

Topics of training based on the Roadmap

Common Training for all key members

Each deptt. to nominate min. 1 member

CEO & Coordinator to attend training

Coordinators to train other employees

Training will be spread over full period

Tier II company representatives to attend
Automotive Sector
HAND HOLDING VISITS : PURPOSE

To elaborate and customize what has been taught in Training
programs.

To help the units to identify improvement projects /
activities, in line with what has been taught.

Discuss on the implementing the improvements identified
and suggest different options.

Review progress on the work assigned.
Automotive Sector
HAND HOLDING VISITS : METHOD

GEMBA visit by the CONSULTANT on agreed dates.

Director, plant head and coordinator to be available.

The coordinator of the Unit to record all points of action
discussed during the visits and commit target dates.

Review of earlier Hand holding visit points.

Digital camera is strongly recommended for capturing and
analyzing “Before and After” situations.
Automotive Sector
INTERNAL REVIEWS

It is very much essential that Unit head conducts internal
review before the cluster MRM.

The purpose of internal review is to review the progress in a
formal way, identify gaps and action plan to fill the gap and
record.

It shall be twice a month.
Automotive Sector
MONTHLY REVIEW MEETINGS

MRM is a monthly meeting .

Director, plant head and deptt head to attend. Companies

Coordinators from Mahindra will attend (to possible extent).

Consultant.

Special invitees based on the need.
– Experts / Industrialists
Automotive Sector
PURPOSE OF MRM

To share the experiences.

To review the progress and results.

To have direct interaction between all key persons
involved in the cluster activities.

To give / receive feedback on implementation.

To share concerns and suggestions.
Automotive Sector
CONDUCT OF MRMs

Frequency : Monthly.

Timing : 2 to 4 Hours.

Dates to be declared at beginning of cluster programme itself.
Coordination : Consultant and Plant head.
Automotive Sector
SUCCESS OF MRMs
It highly depends on
Director, plant head , deptt head attending the MRMs
REGULARLY.
 Proper and detail presentations (ppt) by the
Coordinator. Zone wise achievements, Learning during
the month, case studies.
 Conducting internal trainings to all employees in the
unit by the coordinator.

Automotive Sector
Performance Indicators
(also called as ‘Dash Board’)
Automotive Sector
Performance Indicators
Sr. Impact
No Area
Ref.Slide
Parameter
No
1
Q
Defect data bank (Opening balance and closing balance)
15
2
Q
No of days without defect (Plant wise, product line wise)
17
3
Q,C
Cost of Poor Quality in Rs.: Trend to be monitored.
20
4
Q
MIS -Q and HEP projects (Nos at beginning and at end)
21
5
P
VSM to reduce thru put time on major product line :before/after
66
6
P, C
Labour Productivity in terms of kgs/person/hour
67
7
C
Inventory management thru ITR (Inventory turn ratio)
68
8
D
Delivery schedule achievement (in % ) –based on trigger/schedule
71
9
C, D
Capacity increase by OEE improvement (on bottleneck m/cs)
72
10
S
Safety :-No of accidents (major and minor both)
74
11
M
1 S, 2 S Score (as per scoring sheet)
75
12
E
Energy cost reduction (in Rs or in Units) % of sales
76
Automotive Sector
1) Defect Data bank

It includes Defect found at Mahindra, Defects found at PDI,
Inprocess defects at Neminath, Defects found at Incoming
inspection.

Defect modes to be captured as below :-
Sr No
Part No
Part
Name
Defect
Mode
No of
parts
Defect
found
at
Date of Tool
status
detectio deploye
n
d
1
2
3
Data of F13 (full year) V/s F 14 (full year) will give Before and After.
Target :- 80 % reduction over F13.
Data of F 13 (full year) is ‘Agenda for action’.
Lean tools like HEP, MIS Q, Kaizen to be applied to these Defect modes.
Automotive Sector
1 .1 )Product Quality

This indicator measures Product Quality Levels

Expressed in ‘No. of defective parts per million’

This indicator should decrease over time.

There are three indicators
– Customer complaints (No.s)
– Customer returns(ppm)
– In process Rejection (ppm)
Automotive Sector
2) No of days without Defect

It includes Defect found at Mahindra, Defects found at PDI,
Inprocess defects at Neminath, Defects found at Incoming
inspection.

Defect be captured as Q CLOCK
Data of F13 (full year) V/s F 14 (full year) will give Before and After.
Target :- 80 % reduction over F13.
Data of F 13 (full year) is ‘Agenda for action’.
Lean tools like HEP, MIS Q, Kaizen to be applied to these Defect modes.
Automotive Sector
Q
Clock
Automotive Sector
Customer Complaint For xxxxxxx LINE or SHOP.
Automotive Sector
3 )Cost Of Poor Quality

This indicator measures Product Quality Levels

Expressed in Rs.

This indicator should decrease over time.

There are three elements
– Rejection
– Rework
– Segregation and inspection
Automotive Sector
4 )MIS –Q and HEP Projects

Monitor Before and After
Automotive Sector
MAHINDRA INSPECTION STANDARD
-QUALITY
MIS-Q
Automotive Sector
Purpose : To identify & Confirm Role of the
Part at M&M and upto End Customer .

MIS-Q
Parameters distributed into

Fit

Finish

Function
Automotive Sector
Mahindra Inspection Standard - Quality
MIS-Q
Model
S.NO.
A
Supplier Code
Supplier Name
PART NAME
INSPECTION ITEM
CRITERIA
PAGE
PART
CLNUMBER
INSPECTION INSPECTION SAMPLING INSPECTION REMARK
METHOD
TOOL
PLAN
STAGE
S
FITMENT
1
2
3
B
FINISH
1
2
3
C
FUNCTION
1
2
3
All variable parameters should be recorded
All functional parameters should have traceability to process control records.
Process capability report should be submitted at monthly frequency.
Endurance test reports to be submitted as per frequency
Origin Date :
For M&M use only :
MIS-Q Sr No :
PQA/SQA/F/23
Rev No :
Rev Date:
Prepared By :
Rev : 0.00
Date : 07-Dec-10
Approved By :
Automotive Sector
MIS-Q - Tracking
MIS-Q

Quality Standard of Part Supplied to M&M.

Agreement between M&M and Supplier (sign- off Copy)


Identified by Unique Number allotted by M&M.
Document maintained, both at Supplier end & M&M.

Copy replaceable - in line with changes in Part Drawing /
Improvement.
Automotive Sector
Guideline – For FIT parameters
MIS-Q

Parameters responsible for fitment of part at M&M

This includes dimensional parameters like OD, Hole ID, CD,
PCD , Thickness etc.

This also includes the critical visual markings like clip position
on hoses, +/- mark on spring, color code etc.

Fit parameters should have qualifying gauge.

Variable dimension with sampling plan should have back up.
Automotive Sector
Guideline – Finish parameters
MIS-Q

Mostly appearance related parameters like finish, dent,
damage, flashes, waviness, wrinkles etc.

Aesthetic Parameters like shade variation, discoloration etc.
Automotive Sector
Guideline – Function parameters
MIS-Q

Physical / Mechanical properties like proof load, UTS results,
Critical raw material Chemical Analysis results, Hardness etc.

Performance test schedule as per DVP with its checking
frequency (month of checking)
Automotive Sector
Human Error Prevention
Automotive Sector
Human Error Prevention
What is Error Proofing?
Principles of Error Proofing
Three Steps for Error Proofing
Human Error Prevention Check list
Exercise
Questions and Answers
Automotive Sector
What is Error Proofing?
Automotive Sector
Three Common Misunderstandings
Attentiveness can prevent errors.
Education/training can prevent errors.
Multi-fold inspection can prevent errors.
Automotive Sector
Can attentiveness prevent errors?
Mode of Consciousness
Physiological State
０
Unconsciousness
Sleep
Error Occurrence
Rate
1
Ⅰ
Week consciousness
Tired
More than 0.1
Ⅱ
Normal and relaxed
Rest or routine work 0.01～0.00001
Ⅲ
Normal and clear
Active
Less than
0.000001
Ⅳ
Excited
Panicked
More than 0.1
Phase
Automotive Sector
Can education/training prevent errors?
A Deviation from
OS (Operation
Standard)
40%
???
Yes
Yes
Did
he/she
understan
d SOP?
No
Education
20%
Yes
Did he/she
have skills in
following
SOP?
No
Training
15%
Did he/she
intend to
follow
SOP?
No
Motivation
25%
Automotive Sector
100%
Error rate = 0.03
95%
87%
80%
99%
98%
1-(0.35)5 = 0.99?
Error Detection Rate
80%
60%
65%
65%
55%
60%
40%
20%
0%
Single
Double
Triple
Four-fold
Five-fold
Automotive Sector
Which Line is longer? a or b
a
b
Automotive Sector
Which Line is longer? a or b
a
b
Both unstable consciousness and
error-prone work operations come together
and lead to human errors.
Automotive Sector
A Case Study: Assembly Process
Apply heated resin to both sides of a product
Forget to apply to one side
A small error
could be a great
pain
1. Error prevention campaign.
2. Additional inspector for
error checking.
Recurrence of errors
3 major errors
No hot-melt
Incomplete
soldering
Forget
Campaign poster
Automotive Sector
Observation of Operations
1. Take a product from the line.
2. Apply heated resin to one side of the product.
3. Cool the product down off the line.
4. Pick the product up and apply the resin to the other side.
5. Cool the product down again off the line.
6. Put the product back to the line.
There is no indication between
Operations 3 and 5.
Orange
White
Cooling places can be distinguished by using colors
Automotive Sector
Error Proofing
Improvement of work operations, including
materials, machines and methods, with the aim of
preventing problems due to human error.
Many names:
Foolproof, FP, Poka-yoke, Mistake proofing, Error
Proofing etc.
Error Proofing
Improve Human Beings
to Fit Operations
Improve Operations
to Fit Human Beings
Automotive Sector
2. Error Proofing Principles
Automotive Sector
Error Proofing Principles
Operations
Tasks
Risks
Functions
Required
5%
Elimination
Remove work
susceptible to
human error from the
process.
Make the error-prone
operations
unnecessary.
Memory
27%
Replacement
Error
Perceptio
n
Motion
23%
Effects
40%
Facilitation
Detection
Replace the human
operations with more
reliable machines.
Make the operations
easier for workers to
perform.
Automate operations.
Distinguish parts
boxes by color
coding.
Ensure that
abnormalities
caused by error are
detected.
Equipment that
detects worker's
motions and make an
alarm.
5%
Mitigation
Mitigate the effects of
error.
Electric fuse that
preventing equipment
breaks.
Minimization of Effects
Prevention of Occurrence
Minimize the effects of
human errors.
Prevent the occurrence of human errors
which may cause troubles.
Error Proofing
Small
Abnorma
-lities
Losses
The percentage indicates the ratio of examples
corresponding to each principle.
Large
Automotive Sector
Wire
Product
Battens
Nylon Belt
Automotive Sector
Elimination
Sub-principles
Tasks/Risks to be Eliminated
Examples
Error
Error Proofing
Mix or Assemble
Mixing or assembling more than one
objects into one
Forgetting to put
battens between a
product and its
lifting wires so as
not to damage the
product.
Set Conditions
Tasks
Elimination
Set conditions depending on situations
Move
Moving to objects or transferring
objects
Use nylon bands instead of
wires, thus making the
battens unnecessary by
removing the property
which generates the
operation.
Task Elimination
Hand-off
Transferring information or objects
from a person to another person
Fill-in
Getting information and filling it in
a format
Verify or Adjust
Checking or adjusting objects or
schedules
Risks
Touching a high
Eliminate error-prone tasks. temperature pipe
and getting burnt.
Risk Elimination
Make the pipe safe by
covering it with insulating
material.
Eliminate risks inherent in
objects or objects themselves.
Automotive Sector
Elimination
In many cases, process/equipment design
must be changed drastically.
Elimination solution can have a great sideeffect on cost, productivity and performance.
This side-effect must be considered.
Automotive Sector
Light lamps
Sense the shape
Sub-assembly Product
Lamp
Conveyor
Parts Boxes
Limit Switch
Automotive Sector
Replacement
Functions to be
Replaced
Sub-principles
Memory
Replacement
Automation
Perception
Use automation to replace
completely a particular human
operation with machines.
Support System
Motion
Give support tools such as
checklist, reminders, guides or
samples to help human beings
to perform the operations more
reliably.
Examples
Error
Error Proofing
Misreading a work
order sheet and
installing the
wrong parts in a
sub assembly.
Sense the shape
of the sub
assembly product
mechanically or
electrically and to
light lamps on the
appropriate parts
boxes.
Forgetting to do a Use a table
part of operations. showing the
sequence and
contents of
operations, thus
making it
unnecessary for
workers to
memorize them.
Automotive Sector
Replacement
Various methods can be considered depending
on the number of functions that are replaced.
To replace all functions leads to large-scale
and unrealistic solutions.
It is essential to focus on error-prone
functions in the operations and replace them.
Automotive Sector



Simplification
Distinction
Adjustment
Parts Box
Work Order Sheet
Common ID Code
Automotive Sector
Facilitation
Functions to be Facilitated
Sub-principles
Examples
Error
Memory
Simplification
Facilitation
Decrease the number of
changes or differences.
Perception
Error Proofing
Selecting the wrong Make a mark on
parts.
each parts box
consistent with a
corresponding mark
on the work-order
sheet.
Misunderstanding
the types of parts.
Color coding of the
parts and the
arrangement of
parts boxes so as to
keep away separate
similar parts.
Misreading the
work-order sheet.
Making the symbols
or characters which
show the types of
parts bigger and
clearer.
Distinction
Distinguish changes or differences
form each other.
Motion
Adjustment
Adjust the properties of operations to
suit the human being's capabilities.
Automotive Sector
Facilitation
Each solution has limited effectiveness, but its cost
and side-effects to operations are minimal
Do not use one method alone but apply
many methods together.
List as many solution ideas as possible and
evaluate them.
Automotive Sector
Detect taking
parts
Operations in the
previous process
Make tools do
not work
Photo-electric
Switch
Parts Boxes
Assembly Tool
Automotive Sector
Detection
Abnormalities to be Detected
Sub-Principles
Examples
Abnormality in Motion
Detection
Error
Abnormity in
motion of
persons or
objects.
Negative
Omission of necessary
motions
Record and Verify
Motion and Indicate
Abnormality
Record precedent motions,
and verify them at a
subsequent point in
motion/time.
Positive
Unnecessary motions
Abnormality in Results
Abnormality in results of motions such
as shape/quantity/state of objects.
Restrict Motions
Restrict motions to let
persons to notice
abnormality.
Verify Results and
Indicate Abnormality
Sense shape/quality/state
of work objects at a
certain point in
motion/time.
Misreading an
operationorder sheet
and selecting
the wrong
parts.
Error Proofing
use photo-electric switches
attached to the parts boxes to
sense which parts the worker
has picked up and compare the
results with each other or with
pre-process operation contents,
and automatically suspend
operation of the assembly tool if
there is any disagreement.
Misreading an Change the shapes of the parts
operationso that the wrong parts cannot
order sheet
be fitted to the sub-assembly
and selecting product.
the wrong
parts.
Misreading an
operationorder sheet
and selecting
the wrong
parts.
Sensing the shape of the
product on its way to the next
process, comparing the results
with the standard and stopping
the production line if there is
any disagreement.
Automotive Sector
Detection
Late detection
means large
correction
costs.
Establish
detection
techniques.
Hardware
has an
important
role.
Errors are
not prevented.
Prevent
hardware
failure.
Apply
Prevention of
Occurrence
solutions
at the same
time.
Automotive Sector
Foreman
Worker
Switch of the Equipment
Main
Workshop
Switch
Automotive Sector
Mitigation
Effects to be Mitigated
Sub-principles
Examples
Error
Malfunction-malfunction
Chain
Mitigation
Errors cause malfunctions in
operations subsequently.
Unsafe State
Malfunctionunsafe
state-loss
Chain
Redundancy
Have a safety factor, or make
same functions parallel.
Failsafe
Incorporate shock-absorbing
material/equipment.
Loss
Malfunctions in operations cause
losses.
Protector
Make unsafe conditions
not produce losses.
Error Proofing
Burning out the
motor of a
production
machine by
forgetting to
switch off its
power supply.
Make it the worker's job to
operate the switch on the
machine itself and the
foreman's job to operate
the main workshop switch.
Burning out the
motor of a
production
machine by
forgetting to
switch off its
power supply.
Fit the machine with a fuse
which cuts off the power
supply when the motor
temperature reaches a
certain level.
Knocking
Cover the posts with
products against shock-absorbing
poles of shelves materials.
when putting
them on the
shelves.
Automotive Sector
Mitigation
It is important to
prevent
undesired effects.
Occurrence of
error
is not recorded.
Focus on the
chain of effects
which leads to
the undesired
effects
Apply
Detection
solutions
at the same time.
Automotive Sector
Error Proofing Principles
Elimination
Task Elimination
Risk Elimination
Prevention
of
Occurrence
Replacement
Automation
Support System
Facilitation
Simplification
Distinction
Error
Proofing
Adjustment
Detection
Record & Verify Motion
Restrict Motions
Minimization
of Effects
Verify Results
Mitigation
Redundancy
Failsafe
Protector
Automotive Sector
Three Phase Approach
Step I: Identifying improvement
opportunities
Step II: Generating solutions
Step III: Evaluating and selecting
solutions
Automotive Sector
Human Error Prevention Check list
HUMAN ERROR PREVENTION CHECK LIST
BWT Sr.No/Year Date CFT Defect -
Rev - 00
Defect Rate before Defect rate after 3 weeks of solution Why
Why
Why
Why
Why
SPN
Principles
Question to be asked to the process
Solution
Effectivn
ess
Cost
Implimen
tation
SPN
Can we eliminate the error-prone process?
Elimination
Can we eliminate harmful objects?
Can we automate the process?
Replacement
Can we provide supporting tools like
checklists/gages/samples?
Can we simplify changes/differences in the operations?
(standardization, code matching, etc)
Can we distinct changes/differences in the operations? (color
Facilitatation
coding, unique shape, etc.)
Can We adjust the properties of the operations which suits
human beings?
Can we record the motion of the earlier operation and verify it
before starting the next operation
Can we restrict the motion in such way that it will notice the
Detection
abnormility?
Can we verify the results before starting the next operation ?
(sensing shape/state/quality of work)
Can we make function parelle(Redundant)?(Additional
Control)
Can we incorporate some shock absorbing
Mitigation
materail/equipment?(Like Fuse)
Can we make unsafe conditions more safer so as to not to
produce the defects?(Protection)
Solution Implimentation
Sr.No
Actions
Resp
Date Status
Automotive Sector
Step III: SPN
Solution Priority Number
=Effectiveness X Cost X Implementation



Effectiveness: 1(Ineffective) to 3 (Very Effective)
Cost: 1(High) to 3(Low)
Implementation: 1(Difficult) to 3(Easy)
Automotive Sector
SPN: Effectiveness Scoring
Score
Definition
3
Very Effective: Probability of the error can
be eliminated, or chance of detection can be
perfectly improved.
Effective: Probability of the error can be
reduced; however, it is still high. Chance of
detection can be improved; however, it is still
not enough.
Ineffective: Probability of the error can not
be reduced, and chance of detection can not
be improved.
2
Higher
is better
1
Automotive Sector
SPN: Cost Scoring
Score
3
2
1
Definition
Low: Within daily operation budget.
No specific budget is needed.
Moderate: Department level budget is
needed.
High: Company level budget is
needed.
Higher is
better
Automotive Sector
SPN: Implementation Scoring
Score
Higher is
better
Definition
3
Easy: No training is needed.
No resistance is expected.
2
Moderate: Training course is needed.
Some resistance is expected.
1
Difficult: Culture change is needed.
Strong resistance is expected.
Automotive Sector
Question and Answer
Automotive Sector
5 ) VSM to reduce thru put time (on major product line)
Compare : before/after

This indicator measures line balance

Expressed in ‘Thru put time’

This indicator should decrease over time.

There are three initiatives which will reduce it
– KAIZEN
– SMED
– Line balancing actions
Automotive Sector
6) Productivity

This is measured as the ratio between the no. of
accepted units made and the total no. of
employees hours associated with the mfg. of
these units.

Measure production volume in :
Kg/person/hour

It includes Direct, Indirect & Admin staff.

This measure should increase over time.
Automotive Sector
7) INVENTORY TURNS RATIO

This measures how frequently the stock of raw
material, work in process and finished goods are
turned over in relation to the material cost in the
Sales revenue.

Inventory levels are the key indicators of the
‘Leanness’ of the process and are directly related
to the simplicity of production flows.

This increase over time.
Automotive Sector
7) INVENTORY TURNS RATIO… contd.




Unit Company should define its method of
calculation of material cost, inventory compilation.
Unit Company should take a stock of the inventory
of RM, WIP, FG on the last day of the month and
calculate the ratio.
Include all materials owned, at subcontractors,
warehouse etc.
Automotive Sector
7) INVENTORY TURNS RATIO… contd.
Material cost of sales in a particular month
ITR = ---------------------------------------------------------------- x 12
Inventory of RM + WIP + FG as on date
Automotive Sector
8) DELIVERY SCHEDULE ACHIEVEMENT

This measures how well a supplier’s dispatches
match the planned delivery requirement of the
customers.

Unit of this measure is %

This should increase over time.
Total no. of dispatches achieved
= ------------------------------------------- x 100
Total no. of dispatches planned
USE EXCEL SHEET AS EXPLAINED.
Automotive Sector
9) OVERALL EQUIPMENT EFFECTIVENESS (OEE)

This is a composite measure of the Equipment
Performance.

This includes Availability Performance,
Operational Performance & Quality performance
of the equipment.

This should increase with time.

Unit of measure is %
Automotive Sector
9) O E E …..(contd)
OEE (Overall Equipment Effectiveness) =
Availability Rating x Quality Rating x Performance Rating
Availability Rating
=
Total Time - Loss Time (i.e. equipment downtime )
Total Available Time
Performance Rating = Theo. Cycle Time X Parts Actually Produced
Operating Available Time
Quality Rating
73
=
No. of OK Parts
Total parts produced.
Automotive Sector
10) SAFETY
There are two measures for safety

Accident Frequency Rate – No. of accidents occurring in
the Co. due to unsafe practices/ conditions.
– Prepare monthly chart for it. It should reduce over
time.
No. of Accidents
= ----------------------- X 1 million
Total man hours
Man hours lost
 Accident Severity Rate = ----------------------------- x 1 million
Total man hours avl
Automotive Sector
11)5 S
These are for improving the Operations

The 5 S Audit cum Score sheet is used to measure
5 S score of the Unit Co.

Unit for this indicator is %

It should increase over time.

It is improved through
• 5 S audit
• WPP (Worst Point Photography)
• FPP (Fixed Point Photography)
Automotive Sector
12) ENERGY COST

This indicator is a measure of energy input cost
reduction in the working of the whole
organization.

Unit is Rs. Or as % of sales/production

Energy savings may be Electrical energy, Fuel
savings etc.

It should decrease over time.

Co. should make a monthly trend graph
Automotive Sector
Question –Answer Session….
Thank You!
Automotive Sector