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The Power of Sustainability for Superior Business Performance

DivgiWarner participates in the Mahindra Great Escape Event at Lonavala

DivgiWarner Enters Toyota Supply Chain A Mindshare With Stalwarts Within Our Workforce

Visit of Takeuchi-san, Managing Director, Toyota Kirloskar Auto Parts Pvt. Ltd. and Team DivgiWarner Business Philosophy Unveiled

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LIKE NO OTHER PRODUCT LEADERSHIP

connecting the dots

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Innovation TIMES 2

Our very first exposure to the discipline of sustainability was thanks to Anant Nadkarni of the TATA Group who has been a mentor to us for many years. Since the late 19th century, the TATA Group of India has been an exemplar in conducting its business to the highest standards of economic, environmental and social accountability. The life and times of the founder Jamshetji Tata are an endless source of inspiration in the conduct of an economic enterprise to high ideals. Jamshetji is an extraordinary inspiration from a time when it was common to refer to industrial magnates as ‘robber barons’.

It had never occurred to us that it would be possible for us as a comparatively micro enterprise, relative to TATA, to also work towards gaining maturity in the discipline of sustainability. It has been a very fulfilling experience to learn the practice of sustainability processes in a gradual and staged manner starting from first fundamental principles.

Our exposure to various cutting edge ideas in our joint venture with BorgWarner of the USA and our work with India’s leading automotive companies, TATA and Mahindra, had made us aware that we had some fundamental elements, if not all, of Sustainability in some form or another. What was needed was the critical mass input in the form of education, training, and coaching to construct an overarching, integrating framework that would enable us to synthesize our elements into the whole of sustainability and see a more holistic picture that was more than just a sum of individual parts. That input came to us in the form

of the team at KPMG working with us on this engagement and the encouragement from the leadership at both TATA and Mahindra to pursue this initiative.

We made the project a little more manageable by thinking long term over a 3 year period and setting our objectives and goals appropriately. This was driven by our learning from implementing the principles of the Toyota Production System that it takes time for benefits to accrue and emerge; the focus has

to be on understanding and implementing processes to their true intent. Gradually, as maturity increases, the benefits start emerging and then can turn into a torrent, but the focus at all times needs to be on the fundamentals of our processes and a constant reflection of their true intent.

We also saw the sustainability initiative as a game-changer for cultural transformation to become future ready in the 21st century. It meant people-involvement down to the last person, leadership development to live these values, and constant education and training.

We believe that we have only just started on the journey of sustainability and that we still have a long way to go. Some benefits have become apparent while there are some whose potential we have discerned. But like the proverbial iceberg, we believe there are many more waiting to be discovered and experienced on this journey.

We believe that if sustainability is practiced to its true intent, one of the first benefits is on the morale of the organization. In a world crumpled by anxiety, despair, and hopelessness, this is a tremendous benefit. It brings clarity of thought in the leadership and a more lucid and coherent enunciation of the interconnectedness among all aspects of the enterprise. People see a clear flow of meaning from corporate values to the mission, vision, strategy and day to day working of the company. There is a better sense of shared purpose and the shared vision of what is to be achieved. All of a sudden people become aware that their individual views count and do matter, and that the mission of the company is a tremendous source of inspiration, positive energy

editorial CONNECTING THE DOTS

The Power of Sustainability for Superior Business Performance

Innovation TIMES 3

and empowerment. Where there is self-confidence and conviction there is also the steadfastness and courage that are so very necessary in the face of unpredictable adversities that companies have to face nowadays in this VUCA environment.

An immediate follow-on benefit is also the recognition that excellence is a result of a good work environment, clear vision and strategy, availability of robust processes and tools, and committed and competent colleagues. At DivgiWarner we have now been able to develop a clear roadmap that logically flows, step by step, through the following steps:

1. Values and Beliefs2. Shared Mission and Vision3. Strategy – A deeper insight into the discipline and

how it ought to be deployed4. Management Processes including a Balanced

Triple Bottom-line Scorecard of Metrics5. Tools for Enhancing Management Process

Effectiveness and Efficiency6. Individual and Organizational Competency

Models (includes Talent Management)7. Development of Organizational Cultural

Attributes 8. Reinforcing Feedback into Values and Beliefs

Sustainability has integrated various disparate initiatives into one dynamic whole. These include quality, environment, safety, ethical codes of conduct, enterprise resource planning and control, information technology, marketing and advance business development, product planning and development, and, above all, human resource planning and organization development. It will enable us to build a great brand for our company based on technology-led innovation for product leadership; market and geographic diversity; manufacturing and

quality excellence; financial, environmental and social discipline; and a pervasive spirit of collaboration in our complete value chains from the most upstream supplier to the most downstream consumer.

The lasting contribution of the Sustainability initiative in the long term might well be the durable cultural attributes it will leave behind – a culture that will challenge our people but is also caring and compassionate, one that is down to earth and entrepreneurial, and one where a can-do spirit energizes a drive for innovative results and superior business impact. In short, a vision to help our people rise to the full extent of their human potential.

Sustainability is the new paradigm of the 21st century. It is a new and enlightened way of looking at commercial enterprises holistically and defining the well-being of the various stakeholders in an economic organization. In the ultimate analysis it is the assiduous and diligent practice of the discipline of individual mastery and organizational excellence that can take organizations to the state where, as India’s poet Rabindranath Tagore said with lyrical eloquence, ‘the mind is led forward into ever-widening thought and action’ so necessary for complete human development.

Best wishes,

Jitendra DivgiManaging Director

CONNECTING THE DOTS

DivgiWarner Sustainability Program Drivers

▶ Inspiration and Encouragement from World-Leaders, Tata and Mahindra

▶ Values and Beliefs ▶ Clear Vision and Strategy ▶ Resolution to Overcome Barriers ▶ Learning Experiences ▶ Pervasive Spirit of Collaboration with

Employees, Suppliers and Customers ▶ Strong Business Commitment ▶ Competent Colleagues

Innovation TIMES 4

feature story “4 PIECE (GEAR)” SUITE

DivgiWarner Enters Toyota Supply Chain

In August 2013, Toyota Kirloskar approached DivgiWarner to understand if it could manufacture and supply it “piece gears” (dog plates) locally. The request was nothing short of a dream come true. It’s after all, any supplier’s dream to be part of the Toyota supplier fraternity.

But it is not without reason that Toyota approached DivgiWarner specifically. The story dates back to July 2012, when BorgWarner awarded DivgiWarner a project for the manufacture of Flange and Sprocket Driven components for its Transfer Case to be mounted on the Toyota Tundra pickup truck world-wide. The project involved end-to-end project responsibilities; design and development, manufacture and export as well as warehousing and inventory management of the components at a facility at Charleston, South Carolina. Since the commencement of shipment in April 2013, DivgiWarner has been fulfilling BorgWarner’s minimum monthly requirement of inventory to sustain its production capacity of 8000-9000 transfer cases per month with no disruptions to BorgWarner’s Production Line till date and counting.

When, in August 2013, DivgiWarner were approached by Toyota in India, the “dots” had begun to connect. DivgiWarner was only too glad to support Toyota on its localization program.

A year later, in March 2014, Toyota, USA announced BorgWarner, Seneca, South Carolina as its North American supplier of two-speed, part-time four-wheel drive transfer cases for the Toyota Tundra pickup truck. In his address to the invitees of the event, Chris Nielsen, Senior Vice President, Toyota Motor Engineering and Manufacturing North America, Inc. mentioned BorgWarner’s transfer case – the very transfer case that had the DivgiWarner Flange and Sprocket Driven components – as being the global benchmark. This news acted as further endorsement of our contribution to world-class quality products to world-class automotive companies.

The Toyota India project constituted the development of 4 nos. “Piece Gears” (Dog Plates) through the process as laid down by its Japanese Engineering Team.

DivgiWarner’s Engineering Team, however, suggested an alternate process route for providing a more superior

performance. That the Toyota Nagoya Engineering team accepted our suggestion only vindicates our claim of being an authority over manufacturing processes.

After four gruelling audits that started as early as February 2014, and testing of several prototypes submitted in the course of our engagement with Toyota, DivgiWarner was awarded the Letter of Intent for the supply of the “Piece Gear” components. The ecstatic moment was heightened by Toyota Managing Director Takeuchi-san’s visit to DivgiWarner’s facility at Bhosari along with Tsubouchi-san, Sr. Vice President & Director and Hazra-san, Manager – Quality Control.

To meet and exceed Toyota’s expectations, DivgiWarner has invested heavily into state-of-the-art machines adding cutting-edge technology capabilities to its existing infrastructure. The machines have been commissioned or are under procurement. A dedicated machining line has been set up at our facility at Sirsi for the purpose.

DivgiWarner is currently in the Production Part Approval Process (PPAP) of the project and is due to complete the same soon. Regular shipments are scheduled for the end of this year.

With the successful execution of this project, DivgiWarner is hopeful of “stepping-up-the-ladder” of the Toyota supplier base and becoming one of Toyota’s strongest suppliers.

List of Equipment ▶ Broaching Machines ▶ 8-Axis CNC Shaping

Machines ▶ 10-Axis Tooth Roofing

Machines

▶ Deburring Chamfering Machines

▶ Washing and Cleaning Machine

▶ Vertical Machining Centres

Piece Gear with Asymmetric Tooth Roofing

Contributor: Tushar Sawant, Advance Business Development

Innovation TIMES 5

“4 PIECE (GEAR)” SUITE

Visit of Takeuchi-san, Managing Director, Toyota Kirloskar Auto Parts Pvt. Ltd. and Team

Innovation TIMES 6

DivgiWarner Participates in the Mahindra Great Escape Event at Lonavala

In the recent Mahindra Great Escape Event held on 2 July 2016, at Lonavala, Maharashtra, an excellent caption caught our eyes. Nothing could have been more apt than that statement of the Mahindra Thar wherever it went – “You might go fast, I can go anywhere”.

On that day, neither the pouring rain nor the dirt tracks with ankle deep slush seemed to matter to the 30-odd participants for over six hours of the duration of the event as they all savoured the ultimate thrill of driving that “signature” 4x4 called the Thar.

DivgiWarner’s team of three had their acts cut out for the event. Gajanan Chitale, the driver ensured successful completion of the gruelling course, skilfully manoeuvring the challenging obstacles laid down by the Mahindra Adventure Team as part of the excitement of the event. Abhijit Pingale, as the adept navigator guided Gajanan ably out of “sticky” situations and Vijay Nevrekar, as the DivgiWarner brand ambassador, engaged with other participants to drive home the point about the product that is the power behind the Thar CRDe 4x4 – the DivgiWarner Transfer Case.

Overall, the experience added more insights to what DivgiWarner could do to enhance the “Go-Anywhere” spirit of the Thar “Off-Roaders”.

The Mahindra Great Escape Event continues to be the “connecting dot” that endorses DivgiWarner’s whole-hearted commitment to Mahindra as its value-added supplier beyond its business engagements with the OEM.

events GO-ANYWHERE

Contributor: Gajanan Chitale, Customer Support

Innovation TIMES 7

FACE OF PRODUCT LEADERSHIP

What is your current role in DivgiWarner?As Senior Manager – Quality Assurance, I am responsible for overall Plant Quality Assurance activities, which include incoming inspection, in-process quality and final inspection. Also, I play a key role in calibrating and monitoring measurement systems. I have a supporting but important role in new product development, cost reduction initiatives and supplier quality improvement and am a team member of the respective Cross Functional Teams for above mentioned initiatives.

My responsibilities include controlling, monitoring and improving product and process quality, performing internal and supplier audits and implementing corrective and preventive actions.

As the Deputy Plant Head, I assist Head – Bhosari Operations in the administration of plant operations activities to meet production and delivery targets.

What has been your experience with DivgiWarner?In my 16 years of association with DivgiWarner, I got immense practical exposure in the areas of assembly, manufacturing, quality assurance and quality systems. The opportunities to participate in the Management and Supervisor Development Programs conducted regularly help me develop my skills towards problem solving, improvement in process quality and overall process improvement as well as leadership soft skills.

During the early stage of my career in Divgi Warner, I worked for a few months in the Assembly Department. During that period, I got the opportunity to work hands-on at all the stations in assembly and prepared and updated station-wise Standard Operating Procedures, Control Plans and Check Sheets. This activity helped me

to understand each and every aspect of the assembly process; its function and its criticality with respect to the overall business objectives. I was also involved in the development, testing & validation of the Auto Locking Hub.

The twin opportunities – visiting the BorgWarner TTS Beijing China facility in 2008 and the BorgWarner TTS Ochang, Korea facility in

2015 – gave me great insights into understanding customer quality requirements, world-class practices that they adopt and work culture. This learning enabled me to set similar benchmarks at our plant.

I feel proud to be associated with DivgiWarner. It has contributed immensely to my personal and professional development right from my position as a Trainee Engineer to Sr. Manager Quality Assurance.

What has been your contribution in DivgiWarner’s Product Leadership Initiatives?I believe that achieving TS Certification for Quality Systems, implementation of the BorgWarner Production System, standardization of parts and product quality and supplier inspection plans as well as calibration plans of measuring instruments are few of the areas where I was able to apply my knowledge and experience. This contribution is helping the company to sustain and improve product quality and achieve single digit customer PPM and significant in-house PPM reduction consistently over the last few years.

What do you believe are some of your notable achievements at DivgiWarner?Few of the notable achievements include:

▶ Maintaining single digit customer PPM ▶ Implementing Quality System Basics ▶ Launching the Toyota-Tundra and Nissan Timing

Gears Projects ▶ Standardizing supplier pre-dispatch inspection

reports ▶ Conducting supplier training on Quality Systems

and Best Practices

Girish.R.RonimathSr. Manager, Quality Assurance

Education: Diploma in Mechanical Engineering [D.M.E.]Date of Induction: 26 March, 1999Career Goals: To be recognized as a knowledgeable and

respected leader in the area of Manufacturing Operations

Hobbies: Cycling, Reading, Listening to old hindi songsFamily Details: Spouse: Jyoti

Child: Aditya

A Mindshare With Stalwarts Within Our Workforce

tete-a-tete

Contributor: Gopal Dalvi, Human Resources

Innovation TIMES 8

The concept of “Connecting the Dots” is not new. However, it’s a very good practice to constantly remind ourselves of our ability to associate one idea with another in the correct sequence, to reveal the ‘big picture’, as we progress in the execution of our individual roles, official or personal, individual or as a team in the walk of life.

This article outlines what these dots that DivgiWarner created for itself are and how it constantly reinforces itself in applying the concept to lend greater clarity in execution of any activity within its organizational capacity.

inside buzz

Values & Beliefs

Shared Vision & Mission

Strategy

ManagementProcesses

Effectiveness andEfficiency Enhancing Tools

Competency ModelsProduct Leadership

OrganizationalCultural Attributes

Reinforcing Feedback into Values and Beliefs

▶ Respect ▶ Integrity ▶ Collaboration ▶ Passion for Excellence ▶ Responsibility to our communities

▶ Vision – “To be recognized as a world class Indian brand in automotive drive train components and systems”

▶ Mission – “To help our customers and our people continually innovate and excel in building world-class drivetrain components and systems”

▶ Technology-Led Innovation ▶ Product & Application Diversity ▶ Customer & Geographic Diversity ▶ Financial Discipline ▶ Manufacturing Excellence ▶ Collaboration

▶ Market & Sell ▶ Develop & Launch ▶ Supply and Support

▶ Risk Strategy Model – Business Risk Analysis ▶ Quality System Tools – PFMEA, PPAP, APQP, … ▶ 8D and other problem solving tools ▶ ISO/TS Standard & BorgWarner Production

System

▶ Market Agility ▶ Talent ▶ Innovation ▶ Speed ▶ Learning for Growth

▶ Challenging work ▶ “Can Do” attitude ▶ Caring ▶ Down to Earth ▶ Disciplined focus on

result and entrepreneurial

DivgiWarner Business Philosophy Unveiled

All Matter in this Newsletter is Copyright & is for meant for private circulation only.For additional information visit www.divgi-warner.com

Contributor: Vijay Nevrekar, Customer Relationship Management

A LINE THROUGH THE DOTS