01.Sundram Fasteners Ltd

SFL – Krishnapuram Kobetsu Kaizen

SUNFAST TPM 1 of 84

Sundram Fasteners Limited (SFL)Krishnapuram,

Madurai

Welcome


SUNFAST TPM 2 of 84

Success through loss elimination approach of Kobetsu Kaizen

Presented by:

S.M.Rajavikkiraman

Sundram Fasteners Ltd

Krishnapuram


SUNFAST TPM 3 of 84

TPM kick-off

Excellence Award

Consistency Award

Special Award

1995

1998

2004

2008

TPM implementation in SFL - Krishnapuram

Part 1

Part 2


SUNFAST TPM 4 of 84Courtesy:JIPM

Top Management

Planning Finance Personnel General Admin

Production Design & Development Materials Marketing

Plant 1 Plant 2 Plant 3

TPM Part 1 and Part 2

TPM Part 1: Main focus on factoryTPM Part 2: Company wide TPM including all functions


SUNFAST TPM 5 of 84

5S (Seiri – Seiton – Seiso – Seiketsu – Shitsuke)

Zero Accidents - Zero Defects - Zero Breakdowns – Zero Losses

Jish

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Plan

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Fact

ory

Initi

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P/E

8-pillar approach to TPM implementation in Part 1


SUNFAST TPM 6 of 84

Transition from Part 1 to Part 2

§ Addition of new pillars

§ OTPM - Purchase § OTPM - Marketing

§ Dividing the Initial Control P/E pillar as,

§ Initial control - Products§ Initial control – Equipments

§ Categorising the pillars as,

§ Internal focus pillars§ Customer focus pillars


SUNFAST TPM 7 of 84

5S (Seiri – Seiton – Seiso – Seiketsu – Shitsuke)

Hi Q – Lo C – Speed – Customer Delight

Zero Accidents - Zero Defects - Zero Breakdowns – Zero Losses

Jish

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Plan

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ance

Qua

lity

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Safe

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PM –

Purc

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Initi

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quip

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Kob

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PM -

Fact

ory

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Initi

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InternalFocused

InternalFocused

CustomerFocused

CustomerFocused

11-pillar 2-tier approach to TPM implementation in Part 2


SUNFAST TPM 8 of 84

Step change

(Innovative/breakthrough activities)

Level of Performance

Period of time

Gradual improvement (Kaizen activities)

Gradual improvement (Kaizen activities)

Part 1 Part 2

Step Change in Part 2


SUNFAST TPM 9 of 84

Top 4 Pillars Focus area

OTPM-Marketing Strategies

IC-Products Technology

OTPM-Factory Systems

Kobetsu Kaizen (KK) Methodology

Focus areas for Step Change in Part 2


SUNFAST TPM 10 of 84

Top 4 Pillars Focus area

OTPM-Marketing Strategies

IC-Products Technology

OTPM-Factory Systems

Kobetsu Kaizen (KK) Methodology

Focus areas for Step Change



Success through loss elimination approach of Kobetsu Kaizen



Success through Kobetsu Kaizen approach



Objectives of KK pillar

q Improve OEE/OPE of equipments

§ Through reduction of time losses From 16 major losses Additional new losses

q Achieve total product cost reduction

§ Through reduction of resource losses From 16 major lossesAdditional new losses

§ VA/VE improvements



Methodology for total product cost reduction

Establish relationship between

1. Costs and Losses

2. Costs and VA/VE

Cost structure

Loss structure

Potential VA/VE

Loss-costRelationship

Matrix



Total Product Cost

Raw material Cost Conversion Cost Employee Cost Fixed Cost

Tools

Sub-contract

Power

Freight Outward

Chemicals

Spares

Bought out service

HSD

Oils and lubricants

Packing Materials

Variable others

Div.Heads

Corp. over heads

Special revenue

Utilities & building

Travel & conveyance

Fixed others

Cost structure



Losses

Time losses Resource losses

New losses

Losses affectingavailability

Losses affecting performance rate

Energy losses

Tool loss

Yield loss

Sub-contract loss

Inventory loss

Bought out service loss

Premium freight loss

Customer complaint loss

Loss structure

Schedule downtime losses

Management losses

Job change time loss

Breakdown loss

Losses affecting quality rate

16 major losses



VA/VE Improvements

Design VA/VE

Process VA/VE

Machine Output VA/VE

Labour Productivity VA/VE

Raw Material

Tools

Eliminate

Combine

Reduce

Simplify

Speed-up

Cycle Time Reduction

Multi Cavity

Enhance equipment capacity

Lunch Time Style Running

Automation

Single Piece Flow Lines

Lunch Time Running

Potential VA/VE improvements



Loss-cost relationship matrix

Relationship Rating Scale : 1 = Weak , 5 = Strong



Methodology for cost reduction

Loss reductionsand

VA/VE improvements

target

Evaluation of loss-cost valuesand

fixing targets for

Loss reductionsand

VA/VE improvements

Loss-costRelationship

Matrix



Loss-cost evaluation and setting targets

Yield Loss

Tool Loss

Energy Loss

J/C Loss

Tool VA/VE

Energy VA/VE

M/C Output VA/VE

Labour Productivity

VA/VE

BM 18% 20% 250 KWh/MT 275 mts. 490

Rs/MT 80

Rs/MT 412

Rs/MT 83 Rs/MT

BM Target Savings Target 8% 5% 100 KWh/MT 75 mts. 1097

Rs/MT 250

Rs/MT1238

Rs/MT 304 Rs/MT

RM cost 38,919 29,189 9,730 5 1 1 1 1 1 1 1

Tool cost 3,918 2,351 1,567 1 5 1 2 4 1 1 1

Energy cost 3,949 2,947 1,002 1 1 5 1 1 3 2 1

Fixed cost 15,877 9,609 6,268 1 1 1 3 1 1 4 1

Employee cost 7,600 6,080 1,520 1 1 1 1 1 1 1 5

Rs./MTMajor Cost Elements

Significant Losses and VA/VE

Losses VA/VE improvements

Relationship Rating Scale : 1 = Weak , 5 = Strong



Yield loss (loss no. 16) reduction



0

50

100

150

200

250

MT

MT 196 38 21 17 10 10 8

Process scrap Defect Loss Inventory

LossSetting Scrap Assorted PS En bit los Testing

Scrap

Yield loss elements

Selected for further analysis



0

20

40

60

80

100

120

140

MT

MT 120 76

Nut Process scrap Bolt Proces scrap

Yield loss elements

63%

37%



Trim BurrMachining BurrSlug Tapping swarf

Burrless forgingForge to final shape

Reduce Machining stock

Reduce slug thickness

Piercing in forging

Burrless Tapping

Grinding swarf

Reduce Grinding stock

Methodology for process scrap reduction

Process scrap reduction

Nut Bolt/Screws

Reduce Face machining

Reduce Bore machining



Slug Make to net shape

Make to near shape

I C I C I C

Reduce Slug 45 34 - - - -

Reduce Face machining - - 10 4 12 5

Reduce bore machining 7 3 18 12 19 12

Total 52 37 28 16 31 17

I - Identified 111

C - Completed 70

Activity

Elements

Kaizen implementation matrix

Process scrap reduction in nuts



BEFOREBEFOREAFTERAFTER

Sample Kaizen

25.0 mm

25.0 mm

RM wt. 96.0 gms RM wt.85.0 gms

New spring loaded die

Process scrap reduction in nuts

(Yield loss)

Yield = 79% Yield = 89.2%



Process scrap reduction - Nut

15

17

19

21

23

25

27

29

%

Yield Loss% 26 25.2 24.8 24.4 25 23 22.6 21.8 22 21.2 19

Tgt. 26 16

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 - I

2008-09 - II

Better

26%

19%

28% Reduction



Formed version

Make to net shape

Make to near shape

I C I C I C

Eliminate Trim burr 48 32 - - - -

Reduce OD grinding - - 15 8 26 16

Reduce collar machining - - 13 5 22 14

Total 48 32 28 13 48 30

I - Identified 124

C - Completed 75

Activity

Elements


Process scrap reduction in bolts



5

7

9

11

13

15

17

19

%

Yield Loss% 16.8 16.4 15.8 15.5 15.1 14.5 13.2 11.5 10.4 9.5 8

Tgt. 16.8 6

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 - I 2008-09 - II

16.8%

8%

Process scrap reduction - Bolt

Better

55% Reduction



0

2

4

6

8

10

12

14

16

18

20 %

Yield Loss% 17.8 17 16.1 15.8 14.9 14.5 13 12 11.5 10.4 9.7

Tgt. 17.8 8

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09-I 2008-09-II

17.8%

9.7%

Total yield loss reduction – Krishnapuram plant

45% Reduction

Better



25000

27000

29000

31000

33000

35000

37000

39000

Rs./MT

Cost 38918 38440 38012 37586 36980 35840 34980 34012 33856 32988 31586

Tgt. 38918 29189

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 - I 2008-09 - II

Resultant RM cost reduction – Krishnapuram plant

19% Reduction

Better



Tool VA/VE improvements



Methodology for Tool VA/VE improvements

Tool life improvement Tool Manufacturing improvement

Identify high consumption /value tools

Design improvement

Using higher grade material for tool

Improved surface coating for tool

Re-cycling

Analysis

Identify design weakness

Optimize tool design

Manufacturing cycle time reduction

Tool VA/VE improvements

Using low cost material

Substitute of low cost material in non working area

Improving the surface finish by changing process sequence



0

200

400

600

800

1,000

1,200

1,400

COST

Rs./

MT

Rs./MT 1,250 940 786 587 355

STEEL TOOLS CARBIDES ROLLING DIES TAPS OTHERS

Tool cost element-wise

Selected for further analysis



0

50

100

150

200

250

300

350

CO

ST R

s./M

T

Rs./MT 305 245 205 155 150 140 50

Piercing Pin Trim dies Heading Insert

Nut forming insert Punches Dies OTHERS

Tool cost element-wise



Tool VA/VE improvements – Steel tools

Tool manufacturing Design Recycling

I C I C I CPiercing Pin - - 18 8 12 8Trim Dies 11 9 - - 48 36Heading Inserts 6 3Nut Forming Dies 8 4 - -Bolt Forming Dies 4 2 - - 48 34Punches - - - - 4 3Common tools - - 10 6 55 33Total 23 15 34 17 167 114I - Identified 224C - Completed 146

Tool Category

Theme




Phase 1 Phase 1 -- ImprovementImprovement

Split design with common material (HSS)

Phase 2 Phase 2 -- ImprovementImprovementSplit design with ‘LoC’ material

Sample Kaizen – Split design

Tool VA/VE improvements – Piercing pin



0

5000

10000

15000

20000

25000

1.6D 1.5D 1.4D 1.3D 1.2D 1.1D 1D 0.9D 0.8D 0.7D

Length

No s

Failure mode: Buckling Failure mode:

Breakage

Optimum length: 1.1D to 1.3D

Result :

Tool cost savings up to Rs 1.2 million / Year ( 3.5 million yen/ Year).

Tool VA/VE improvements – Piercing pinLength optimization

L

D



Tool manufacturing Design Recycling

I C I C I CSteel tools 23 18 34 24 167 132Carbides - - 6 6 48 33Rolling Dies 4 2 - - - -Taps - - 7 4 - -Other tools - - 10 5 55 38

Total 27 20 57 39 270 203I - Identified 354C - Completed 262

Tool Category

Theme

Tool VA/VE improvements – All Tools Kaizen implementation matrix



400

600

800

1000

1200

Rs./MT

Cost / MT 490 520 590 610 670 697 720 786 840 870 928Target 490 1097

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09- I

2008-09- II

928

490

Cost savings through Tool VA/VE improvements

89% Improvement

Better



0

500

1000

1500

2000

2500

3000

3500

4000

4500

Rs./MT

Cost / MT 3918 3840 3750 3610 3560 3420 3315 3150 3010 2850 2480Target 3918 2351

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09- I

2008-09- II

Resultant tool cost reduction – Krishnapuram plant

34% Reduction

Better



Labour productivity VA/VE improvements



Labour productivity VA/VE improvements methodology

Labour productivityVA/VE Improvement

Lunch time style running

Automation Single piece flow lines

Coupling of machines



Lunch Time Style Running (LTSR)

An idea to increase labour productivity

Uses multi-machine operation

Single-piece flow conveyors and coupling of machines

Maximizes man-machine engagement

Layout changes

Focuses on line organization loss




Perfect Cell

Perfect Lines

Multi LineOperation

Information System Support Team

Perfect Machines Coupling of Machines

Zero 1A/1B

Zero Defects

Zero Minor Stops

TPM Part - 1

TPM Part - 2

Methodology for Lunch Time “STYLE” Running



F RFORGING MACHINE ROLLING MACHINE OPERATOR

PRE-TPM TPM Part 1 TPM Part 2

6 Machines

6 Operators

Lunch Time stop

Machine concept

3 Lines

3 Operators

Regular : 3 Op & Lunch Time :1 Op.

Line concept

1 Cell

1 Operator

Regular, Lunch Time : 1 Op.

Cell concept

Journey to Lunch Time Style Running

LUNCH TIME STOPPING LUNCH TIME RUNNING LUNCH TIME STYLE RUNNING



Forging machine

Rolling machineOperator 1

Line 1Line 3 Line 2

Operator 2Operator 3

Problem / present statusWe have 3 lines of forging and rolling which are coupled

Each line has got a dedicated operator

Labour productivity is low



Countermeasures

Eliminate loading pits, output carrying conveyors and

vibratory feeders

Replace bulk feeding conveyors to Single-piece flow conveyors

Re-layout to minimize operator movement

Release other two operators for support / kaizen team

Introduce information system between operator and

support / kaizen team



MODIFIED LAYOUT

Line 1Line 3 Line 2

Operator 3 Operator 2 Operator 1

Operator 1

BEFORE LAYOUT

Lunch Time Style RunningSample Kaizen – 84S1, 84S2 and 84S 3



Responsibilities for Operator and Support teamOPERATOR RESPONSIBLE FOR ALL ACTIVITIES DONE ON ROUTINE BASIS

SUPPORT TEAM RESPONSIBLE FOR EXTERNAL AND SPECIAL ACTIVITIES




Support required from Supervisor/Manager

Support required from Kaizen Team

Machine is in Running

Light Signal with AlarmAudio

LTSR - Information system

Information system



Result

100

213

639

0

200

400

600

800

Index 100 213 639

Pre-TPM TPM Part 1 TPM Part 2

Labour productivity index



Benefits



0

50

100

150

200

250

300

350

Rs./MT

Cost / MT 83 92 102 108 118 126 132 138 145 168 243Target 83 304

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09- I

2008-09- II

83

243

260%

BetterCost savings through labour productivity VA/VE improvements



5500

6000

6500

7000

7500

8000RS/MT

Cost 7600 7520 7410 7205 7180 6950 6770 6620 6520 6490 6320

Tgt. 7600 6080

1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 - I 2008-09 - II

Better

Resultant employee cost reduction – Krishnapuram plant

17 % Reduction



Total product cost reduction – Krishnapuram plant

100

8273 70

0

20

40

60

80

100

%

Product cost % 100 82 73 70

BM (1998-99) Consistency (2004-05) Current (2008-09) Target

18% 27%30%

Against the target cost reduction of 30%, we achieved 27% so far.



TPMPart 1

TPMPart 2

It is wider!

It is higher!!

It is much bigger!!!

To Sum up



Thank YouThank You

01.Sundram Fasteners Ltd

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