UNDERTAKEN AT

IMPERIAL AUTO INDUSTRIES

LIMITED

FARIDABAD(HARYANA)

KUREKSHETRA UNIVERSITY

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Acknowledgement

The successful realization of the project is an out

growth of the consolidated effort of the people from

desperate fronts. So it’s only with their support and

guidance, I could meet my goal.

It is a proud privilege to acknowledge with deep

sense of gratitude to Mr. Pawan Saharan

(Development Head).

I like to thank Mr. Manoj Batra (Manager- HR) who

has given me the opportunity to do my summer

training at Imperial Auto Industries Ltd.

I am especially grateful to my guide Mr. L.M. Sharma

(Plant Head) & Ravinder Wadhwa ( Engineer- HR) for

providing me valuable inputs so as to complete my

training successfully.

I would also like to extend my thanks to all the

Development & production Staff members who have

been very helpful through out my training in

supplying with all the necessary information.

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Lastly I would like to thank Ms. Imperial Auto

Industries Ltd, for accepting me as a summer trainee

in such an esteemed organization.

AMIT MALIKROLL NO. 3407333S.D.I.T.MK.U University

Preface

The following is a report of six weeks Summer

Training at Imperial Auto Industries Ltd. done in

partial fulfillment of my B.E course from S.D.I.T.M,

K.U University.

The summer training was completed at Imperial Auto

Industries Ltd. under the guidance of Mr. Pawan

saharan (Development Head). This training is a part

of my four years course. During the stipulated time

period my aim was to gain as much as knowledge

and information possible and to be well familiar with

the working conditions of the Organization. In this

report also are the details of the project work allotted

to me.

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The training was to study the different processes

used in the production of the final product. I also

went to understand ERP software running in the

company.

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IMPERIAL AUTO INDUSTRIES LIMITED

DATE OF INCORPORATION 10TH MAY 1969

REGD. OFFICE 202, KAAUSAL BAZAR,32-33, NEHRU PLACE,NEW DELHI - 110019

MAIN FACTORY & OFFICE

OPPOSITE RAILWAY GOODS SHEDFARIDABAD - 121001

PLANT II PLOT - 94, SECTOR - 25FARIDABAD - 121001

PLANT III SECTOR - 27CFARIDABAD - 121001

PLANT IV PLOT - 83, SECTOR - 25FARIDABAD - 121001

PLANT V 13/6, Mathura RoadFARIDABAD - 121001

BRAKE HOSE PLANT

I-45, DLF Industrial Area , FARIDABAD

PRODUCT PORTFOLIO

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HIGH PRESSURE FUEL INJECTION LINES

FUEL INJECTION CLUSTER PIPE SETS FOR MULTI

CYLINDER ENGINES

RAILWAY DIESEL ENGINES, HEAVY TANK ETC.

HYDRAULIC HIGH PRESSURE COMPONENTS

HYDRAULIC HIGH PRESSURE HOSE

ASSEMBLY

SEAAMLESS TUBE ASSYS FOR HIGH PRESSURE

MANIFOLDS AND HYDRAULIC APPLICATIONS

NYLON TUBES

FUEL SYSTEMS

BRAKE BOOSTER PIPES / LUBRICATION PIPES

CLUTCH / VACCUM / LUBRICATION PIPES

BRAKE LINE & CLUTCH COMPONENTS

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HYDRAULIC BRAKE HOSES

AIR BRAKE HOSES

CONNECTING LINES

BRAKE TUBES

POWER STEARING HOSES

CLUTCH TUBES

AIR LINES

FUEL LINE COMPONENTS

FUEL LINES

FUEL RETURN LINES

OVER FLOW LINES, MANIFOLDS (SPILL PIPES)

LONG LENGTH ROLLS OF FLEXIBLE HOSES WITH PVC CANE

TUBULAR COMPONENTS

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EXHAUST PIPES / COMPONENTS

OIL , WATER & AIR DELIVERY PIPES

STRUCTURAL AUTOMOTIVE FABRICATED TUBES

FUEL TANK NECKS

PIPES & HOSES FOR TANKS , ARMOURED VEHICLES ,

ETC

COMPONENTS FOR AIR STARTING SYSTEMS

RUBBER PRODUCTS

HOSES WITHOUT END FITTINGS

RADIATOR / BEND HOSES

FUEL HOSES AS PER GIVEN GEOMETRY

MULTI LAYERED HOSES - FKM , NBR , CSM

MAIN BUSINESS GROUPS

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MANUFACTURER OF :

AUTOMOTIVE STEEL TUBING

BRAKE TUBES

FUEL TUBES

FUEL INJECTION TUBES

RADIATOR TUBES

FUEL INLET PIPES

OVER FLOW LINES

FABRICATED TUBE ASSY.

CROSS MEMBERS

FLEXIBLE HOSES

FUEL HOSE ASSY.

RADIATOR HOSES

BRAKE HOSE ASSY.

HYD. HIGH PRESSURE HOSE ASSY.

VACCUM HOSE ASSY.

AUTOMOTIVE FUEL SYSTEM

CUSTOMERS

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TATA MOTORS

MARUTI UDYOG LTD.

MAHINDRA & MAHINDRA

SWARAJ MAZDA LTD.

BAJAJ VEHICLES

BAJAJ AUTO

HERO HONDA

HYUNDAI

JCB INDIA

PUNJAB TRACTORS LTD.

EICHER MOTORS

PIAGGIO VEHICLES

L & T JOHNDEERE

CUMMINS INDIA

KIRLOSKAR

ESCORTS INDIA

ASHOK LEYLAND

TAFE

HINDUSTAN MOTORS

CUMMINS, USA

JOHNDEERE, FRANCE

GENERAL MOTORS, USA

TRIUMPH MOTORCYCLES

PROCEDURE

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From a customer, an organization receives the requirement which is known

as PURCHASE ORDER.

The purchase order may be an open order for a year or an order for a

specific time period. According to the order given by customer, schedule is

raised on monthly/ fortnightly/ weekly/ daily basis.

From Production department Bill of Material (BOM) is obtained.

BOM is the amount of raw material required for a single piece of material.

With the help of BOM and Schedule the raw material required is calculated.

All these processes are done by Planning Department.

Resource Planning

After this, the resources of the organization have to be planned for

production of good quality material.

Nowadays mostly organizations work on zero-inventory-level

principle. But there is always a stock of raw material with some standards

like maximum stock, minimum stock, and buffer stock.

The stock has to be checked on daily basis with the standards. If the

stock is greater then the maximum stock, there will be no purchase. If stock

+ buffer stock is in between the maximum stock and minimum stock then

also purchasing is not done otherwise material has to be purchased.

Purchasing is done Purchase Department. Before purchasing, it is seen that

whether quotations are are required or not. If required then quotations are

obtained from vendors and accordingly they are ordered for raw material

required.

When vendor sends the material, gate processing is done. First the

particulars are checked. Checking of material according to schedule is done.

If OK then only the material goes for quantity checking otherwise the

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concerned person is contacted and corrections are done then and there. After

that particulars are rechecked.

Similarly it is done for quantity checking. After that the quality of the

material is checked. If the material is OK, material is sent to store otherwise

it is seen that whether material is urgent or not. In case, it is seen that

whether segregation or deviation or rework is possible with material. If so,

operation required, is done and send to store else send back.

Production

After planning all the resources, the raw material is issued by store. Job

cards are released according to schedule. The various production processes

are applied. If some job work is required, there are some vendors who take

the material, do operations on that and return back. A record of material is

issued, is maintained. There is boundation on vendor to return the material

within 180 days otherwise there is loss of excise and new billing has to be

done.

One of the important parts of production is inspection. The material

produced has to undergo various tests. If it is not according to quality

required, it is seen that material is required in urgency if it is so; some

deviation is done with permission of senior officers. If not, material is

rejected and goes to scrap.

The material prepared is sent to excise store. After production,

material has to be sent to customer. It is packed properly and sent by suitable

means of transport. For each delivery there is billing. It should be noted that

dispatch is according to schedule or not.

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Rejection from Customer

Sometimes material or a part of material is rejected by customer. For that

part of rejected material MRV (Material Return Voucher) is prepared. That

part of rejected material has to be replaced within 180 days (otherwise loss

of excise and new billing).

Accounts Department

There is an Accounts Department where various accounting processes are

done regarding the payments (from customer /to vendors). Above explained

processes are the important components of the chain on which an

organization runs.

However, it consists of various other important departments where

other processes (essential for smooth running of organization) takes place

e.g. Marketing Department, R & D Department, and System Department etc.

Feedback

From the customer, not only the order is received but also the feedback

about the product is obtained. CCR (Customer Complaint) – The complaint

about the product may be received from customer. These are registered and

type of complaint is observed. According to the type, QA (Quality

Assurance) Department takes the action. For the improvement of product,

organization keeps on working on that. This is done by the R & D

Department.

ECN (Engineering Change Noting) – Some changes in designs are

done. According to those changes, samples are prepared and tested on

parameters. If samples are not OK, amendments are done and again samples

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are prepared. After that first lot is prepared. If the product is accepted by the

customer, large scale production is done otherwise amendments are done in

designs. Again sample is prepared and whole process is to be repeated.

AUDIT SYSTEM

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PROCESS AUDIT VISUAL

( FREQ. - WEEKLY, MONTHLY ) DIMENSIONAL

DESTRUCTIVE TEST

PRODUCT AUDIT LAYOUT APPEARANCE

( FREQ. - DAILY, WEEKLY,

MONTHLY ) DIMENSIONAL

SURFACE TREATMENT

PERFORMANCE

PRODUCT LAYOUT AUDIT FULL DIMENSIONAL

( FREQ. - YEARLY ) FITMENT / FUNCTION

PERFORMANCE

MATERIAL

PRODUCT TESTING & EVALUTION DIMENSIONAL

SURFACE TREATMENT

PERFORMANCE

MECHANICAL PROPERTIES

CLEANLINESS

KEY QUALITY FUNCTIONS

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PRODUCT QUALITY PLANNING

PRE PRODUCTION FEASIBILITY STUDY & COMMITMENT

QUALITY PLANNING PROCESSES FLOW DIAGRAM

FAILURE MODE & EFFECT ANALYSIS

PROCESS

PROCESS CONTROL PLAN

PROCESS CAPABILITY ANALYSIS

GUAGE CALIBERATION AND GUAGE

R & R STUDY

TOOL & FIXTURE CONTROL

SUPPLIER SELECTION & APPROVAL

PRODUCTION PROCESS

VALIDATION

PART LEVEL CONTROL PLAN

PRODUCTION PARTS APPROVAL

PROCESS (PPAP)

PRODUCTION QUALIFICATION

INSPECTION SYSTEM

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INCOMING INSPECTION INITIAL SAMPLE EVALUATION

REGULAR SUPPLY INSPECTION

SUPPLIER QUALITY INSPECTION

INPROCESS INSPECTION INITIAL SETUP APPROVAL

STAGE APPROVAL

ONLINE TESTING

LINE REJECTION ANALYSIS

SPC CRITICAL PROCESS CONTROL

CHARTING

PROCESS CAPABILITY STUDY

FINAL INSPECTION FITMENT / FUNCTIONAL

DIMENSIONAL

VISUAL

PACKING

TYPES OF PIPES USED IN THE INDUSTRY

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1) Bundy Tube

a) Tube Double Wall (TDW)

b) Tube Single Wall (TSW)

2) Electrically Resistance Butt Welded Pipe (ERW)

3) Cold Drawn Welded Pipe (CDW)

4) Cold Drawn Seamless Pipe (CDS)

5) High Pressure Pipe

6) Stainless Steel Pipe

Diameter of Pipes used: 4 mm to 105 mm

Hose used for Brake Hose Pipes: HS & LG

Standard internal diameter of brake hose: 3.2 mm

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INTRODUCTION

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In the manufacturing industry, MRP (Material Requirements Planning)

became the fundamental concept of production management and control in

the mid 1970s. At this stage BOM (Bill of Materials), which is purchase

order management that utilizes parts list management and parts

development, was in the mainstream. And this concept (MRP) unfolded

from order inventory management of materials to plant and personnel

planning and distribution planning, which in turn became MRP-II

(Manufacturing Resource Planning). This incorporated financial accounting,

human resource management functions, distribution management functions

and management accounting functions. It came to globally cover all areas of

enterprise mainstay business and eventually came to be called ERP.

What is ERP?

Enterprise Resource Planning (ERP) covers the techniques and concepts

employed for the integrated management of business as a whole, from the

viewpoint of the effective use of management resources, to improve the

efficiency of an enterprise. ERP packages are integrated (covering all

business functions) software packages that support the above ERP concepts.

Originally, ERP packages were targeted at the manufacturing

industry, and consisted mainly of functions for planning and managing core

businesses such as sales management, production management, accounting

and financial affairs, etc. However, in recent years, adaptation not only to

the manufacturing industry, but also to diverse types of industry has become

possible and the expansion of implementation and use has been progressing

on a global level.

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ERP software is designed to model and automate many of the basic

processes of a company, from finance to the shop floor, with the goal of

integrating information across the company and eliminating complex,

expensive links between computer systems that were never meant to talk to

each other.

ERP software is a mirror image of the major business processes of an

organization, such as customer order fulfillment and manufacturing. Its

success depends upon reach-a circumscribed ERP system isn’t much better

than the legacy system it replaces. In many cases, it is worse, because the old

code at least was written specifically for the company and the task. ERP

systems’ set of generic processes, produce the dramatic improvements that

they are capable of only, when used to connect parts of an organization and

integrate its various processes seamlessly. When a warehouse in Noida

enters a customer code, for example, the data flows automatically to others

in the company who need to see it-to the finance department at the company

headquarters in Mumbai and to the manufacturing plant in Chennai. The lure

of information integration struck a chord with CEOs and CFOs-ERP

vendors’ primary targets-and sales of ERP took of in the early 1990s.

REASONS FOR THE GROWTH OF ERP MARKET

There is no doubt that the market for Enterprise Resource Planning (ERP)

systems is in great demand. Industry analysts are forecasting growth rates of

more than 30% for at least the next five years. Why are so many companies

replacing their key business systems? The answer is:

1. To enable improved business performance

Cycle time reduction

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Increased business agility

Inventory reduction

Order fulfillment improvement

2. To support business growth requirements

New products/product lines, new customers

Global requirements including multiple

languages and currencies

3. To provide flexible, integrated, real-time decision support

Improve responsiveness across the organization

4. To eliminate limitation in legacy systems

Century dating issues

Fragmentation of data and processing

Inflexibility to change

Insupportable technologies

5. To take advantage of the untapped mid-market

Increased functionality at a reasonable cost

Client server/open systems technology

Vertical market solutions

These are some of the reasons for the explosive growth rate of the

ERP markets and the ERP vendors. As more and more companies are

joining the race, the ERP vendors are shifting their focus from big- Fortune

1000- companies to different market segments (medium size companies,

small companies, etc.). The future will see fierce battle for market share and

mergers and acquisitions for strategic and competitive advantage. The

ultimate winner in this race will be the customer, who will get better

products and better service at affordable prices.

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ADVANTAGES OF ERP

Installing an ERP system has many advantages-both direct and indirect. The

direct advantages include improved efficiency, information integration for

better decision making, faster response time to customer queries, etc. The

indirect benefits include better corporate image, improved customer

goodwill, customer satisfaction, and so on. The following are some of the

direct benefits of an ERP system:

Business Integration

Flexibility

Better Analysis and Planning Capabilities

Use of Latest Technologies

1. Business Integration

The first and most advantage lies in the promotion of integration. The reason

why ERP packages are considered to be integrated is the automatic data

updation that is possible among the related business components. Since

conventional company information systems almost all were weak in terms of

the communication and integration of information that transcended the

different business functions. In the case of large companies in particular, the

timing of system construction and directives differs for each product and

department/function and sometimes, they are disconnected. For this reason,

it has become an obstacle in the shift to new product and business

classification. In the case of ERP packages, the data of related business

functions is also automatically updated at the time a transaction occurs. For

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this reason, one is able to grasp business details in real time, and carry out

various types of management decisions in a timely manner, based on that

information.

2. Flexibility

The second advantage of ERP packages is their flexibility. Different

languages, currencies, accounting standards and so on can be covered in one

system, and functions that comprehensively manage multiple locations of a

company can be packaged and implemented automatically. To cope with

company globalization and system unification, this flexibility is essential,

and one can say that it has major advantages, not simply for development

and maintenance, but also in terms of management.

3. Better Analysis and Planning Capabilities

Yet another advantage is the boost to the planning functions. By enabling

the comprehensive and unified management of related business and its data,

it becomes possible to fully utilize many types of decision support systems

and simulation functions. Furthermore, since it becomes possible to carry

out, flexibility and in real time, the filling and analysis of data from a variety

of dimensions, one is able to give the decision makers the information they

want; thus enabling them to make better and informed decisions.

4. Use of Latest Technology

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The fourth advantage is the utilization of the latest developments in

Information Technology (IT). The ERP vendors were very quick to realize

that in order to grow and to sustain that growth; they had to embrace the

latest developments in the field of Information Technology. Therefore, they

quickly adapted their systems to take advantage of the latest technologies

like open systems, client/server technology, Internet/Intranet, CALS

(Computer-Aided Acquisition and Logistics Support), electronic-commerce,

etc. It is this quick adaptation to the latest changes in Information

Technology that makes the flexible adaptation to changes in future business

environments possible. It is this flexibility that makes the incorporation of

the latest technology possible during system customization, maintenance and

expansion phases.

As has been stated above, ERP includes many of the functions that will be

necessary for future systems. However, undertaking reforms to company

structures and business processes, so as to enable the full use of these major

features, is the greatest task for companies that will use them. It is necessary

to take note that casually proceeding with the implementation of ERP,

merely for reasons of system reconstruction or preparation for the year 2000,

is likely to result in turning the above mentioned advantages and

disadvantages.

BUSINESS MODULES IN AN ERP PACKAGE

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Introduction

What is a business? It is not just buildings, machinery or money. Business is

people-not only people who voluntarily come together because they can do

much more working together than they could work alone, but also people

who do work on their own as entrepreneurs. Business, then can be defined as

the activities of individuals or groups that are involved in developing,

producing and distributing the goods and services needed to satisfy other

people’s needs.

Business uses resources to produce goods and services. These

resources are land, labor and capital. These three resources become

productive when combined in a rational way for some creative or gainful

purpose. This is the function of the fourth resource-entrepreneurship or

management. Entrepreneurs or managers combine the resources like land,

labor and capital in different ways to produce goods or services. It is the

function of the management to plan the effective and efficient use of the

resources available to the enterprise. The enterprise resource planning (ERP)

systems help the management in making the planning process more

productive and efficient.

All ERP packages contain many modules. The number and features of

the modules varies with the ERP package. In the following we will see some

of the most common modules available in almost all packages. They are

Finance, Manufacturing and Production Planning, Sales and Distribution,

Plant Maintenance, Quality Management, Materials Management and so on.

This is by no means a comprehensive list. Some packages will have a subset

of this and some will have more modules and/or features. For detailed

information, you will have to consult the product literature of the specific

ERP system.

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Computerized systems existed for the different business modules even

before the ERP era. But what makes ERP different and capable of producing

dramatic results is the integration and automation of the various business

functions. Rather than functioning in isolation catering to the needs of their

own departments, the different modules in an ERP system are integrated.

They send and receive data across departmental barriers. Another feature

that improves productivity and reduces response and reaction times is the

automation of the various procedures and tasks. Most of the tasks, which

were done manually in the pre-ERP era, are now automated. A task which

involved the coordination of two or three departments would take days in a

non-ERP environment. However, with the procedure automation and module

integration, the same task will be completed within minutes and that too just

by an action initiated by a single person (which triggers a lot of other

processes in many different modules).

Various different modules of ERP in business are:

1. Finance

This section provides an overview of the financial solutions in most of

the ERP packages. In today’s business enterprise, you need to know that

your financial decisions are based on today’s data, not numbers from records

closed a month ago, or even a week ago. And you need to know that this

same ‘today’s’ data represents every segment of your organization’s

activities, whether your enterprise stretches across a room or around the

globe. This is essential, because the most efficient way to get your enterprise

to where you want it tomorrow is to know exactly where it is today.

The finance modules have following subsystems:

Financial Accounting

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Investment Management

Controlling

Treasury

Enterprise Controlling

2. Production

Manufacturers must respond quickly and effectively to customer

demands. While agility is desirable, agility without an effective enterprise

manufacturing system results in speed without purpose. The very heart of an

enterprise manufacturing system centers on its integrated planning, business

process and execution capabilities. Traditional Closed Loop MRP concepts

have long heralded the importance of effective planning, business process

understanding, and timely execution. Strategically, effective-planning results

in improved inventory turns, increased productivity and improved return on

assets. Tactically, effective business processes provide improved customer

satisfaction, reduced time to market and improved market share. Some of the

major subsystems of the manufacturing module are:

Material and Capacity Planning

Shop Floor Control

Quality Management

JIT/Repetitive Manufacturing

Cost Management

Engineering Data Management

Engineering Change Control

Configuration Management

Serialization/Lot Control

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Tooling

3. Human Resources

Human resources management is an essential factor of any successful

business. The competitive environment of the next millennium, with its

economic and technological challenges, will effect the HR department in

the same way it wills all the other areas of your enterprise. In short, HR

managers must continually review and optimize their business processes.

The HR modules of most ERP systems have a set of rich features and will

integrate seamlessly with the other modules and are thus, invaluable aids in

improving productivity. They offer company-wide solutions for HR

departments and make it possible for other departments to access specific

employee data. Various subsystems under this are:

Personnel Management

Organizational Management

Payroll Accounting

Time Management

Personnel Development

4. Plant Maintenance

Plant Maintenance provides you with technical and business reports and

various presentation options, according to the criteria used: for example,

organizational unit, location, execution period for the tasks, or system

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manufacturer. This information helps you to reduce the duration and cost of

plant downtimes as a result of damage, and to recognize possible weak

points within your technical system in good time. It also forms the basis for

defining an optimum maintenance strategy in the sense of “Total Productive

Maintenance” (TPM) or risk optimized maintenance. The major subsystems

of Plant Maintenance module are:

Preventive maintenance control

Equipment tracking

Component tracking

Plant maintenance calibration tracking

Plant maintenance warranty claims tracking

5. Materials Management

The Materials Management module optimizes all purchasing processes

with workflow-driven processing functions, enables automated supplier

evaluation, lowers procurement and warehousing costs with accurate

inventory and warehouse management and integrates invoice verification.

The main modules of Materials Management are:

Pre-Purchasing Activities

Purchasing

Vendor Evaluation

Inventory Management

Invoice Verification and Material Inspection

6. Quality Management

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The ISO 9000 series and a host of standards define the functions of

Quality Management and the elements of a Quality Management system.

The functions in the Quality Management module support the essential

elements of such a system. The other integrated modules in the system

complement this functionality. These standards require that Quality

Management systems penetrate all processes within an organization. The

task priorities, according to the quality loop, shift production to production

planning and production development, to procurement, and sales and

distribution, as well as into the entire usage phase. In the area of

production, quality assurance is no longer viewed in terms of inspection

and the elimination of defects alone. Instead, the production process itself

becomes the focus of attention. The Quality Management module fulfills

the following functions:

Quality Planning

Quality Inspection

Quality Control

7. Sales and Distribution

With today’s business environment characterized by growing

competition, shrinking cycle times and the accelerating pace of

technological innovation, companies are increasingly being forced to

streamline business processes. In a world in which it is no longer enough

to simply have the best product; these companies are focusing on core

competencies and closer partnerships over the whole supply chain. Here,

increased efficiency in sales and distribution is a key factor to ensure that

companies retain a competitive edge and improve both profit margins and

customer service. In helping business to ‘beat them on delivery’, the sales

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and distribution modules of many ERP vendors offer a comprehensive set

of best-of-breed components for both order and logistics management.

Many of these systems are tightly integrated with the Distribution

Requirements Planning (DRP) engine of the ‘for just-in-time’ deliveries.

This integration enables the mapping and supply of single-site or multi-

site organizations and the definition of relationships in a company’s

internal supply chains. Developing precise logistics planning for just-in-

time deliveries, this system can also generate replenishment orders by

using defined warehouse requirements. The following are the sales related

transactions:

1. Sales queries, such as inquiries and quotations

2. Sales orders

3. Outline agreements, such as contract and scheduling agreements

4. Delivery/Shipment

5. Invoicing/Billing

6. After Sales Reports

A Sales and Distribution module will contain the following

subsystems:

Master Data Management

Sales Order Management

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Purchase Order Management

Warehouse Management

Shipping

Billing

Pricing

Sales Support

Transportation

Foreign Trade

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INTRODUCTION

The purpose of this process is to communicate supplier’s common Advanced

Product Quality Planning (APQP) and Control Plan guidelines developed

jointly by Chrysler, Ford, and General Motors. The report provides

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guidelines designed to produce a product quality plan which will support the

development of a product or service that will satisfy the customer. The term

“product” will be used throughout this report and is meant as either product

or service. The term “supplier” will also be used throughout this report and

is meant to apply to suppliers and subcontractors. Some of the expected

benefits in using these guidelines are:

1. A reduction in the complexity of product quality planning for the

customers and suppliers.

2. A means for suppliers to easily communicate product quality planning

requirements to subcontractors.

FUNDAMENTALS OF ADVANCED PRODUCT QUALITY

PLANNING

Advanced Product Quality Planning is a structured method of defining and

establishing the steps necessary to assure that a product satisfies the

customer. The goal of advanced product quality planning is to facilitate

communication with everyone involved to assure that all required steps are

completed on time. Effective advanced product quality planning depends on

a company’s top management commitment to the effort required in

achieving customer satisfaction. Some of the benefits of advanced product

quality planning are:

1. To direct resources to satisfy the customer.

2. To promote early identification of required changes.

3. To avoid late changes.

4. To provide a quality product on time at the lowest cost.

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The work practices, tools, and analytical techniques described in this

report are listed in a logical sequence to make it easy to flow. Each advanced

product quality plan is unique. The actual timing and sequence of execution

is dependent on customer needs and expectations and/or other practical

matters.

Organize the Team

The supplier’s first step in advanced product quality planning is to

assign responsibility to a cross functional team. Effective product quality

planning requires the involvement of more than just the quality department.

The initial team should include representatives from engineering,

manufacturing, material control, purchasing, quality, sales, field service,

subcontractors, and customers, as appropriate.

STEPS IN ADVANCED PRODUCT QUALITY

PLANNING

1. PLAN AND DEFINE PROGRAM

This section describes how to determine customer needs and expectations

in order to plan and define a quality program. All work must be done with

the customer in mind, providing better products and services than the

competition. The early stage of the product quality planning process is

designed to assure that customer needs and expectations are clearly

understood.

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The inputs and outputs applicable to the process may vary according

to the product process and customer needs and expectations. Some

recommendations discussed in this section are as follows:

Inputs

Voice of the customer

1. Market Research

2. Historical Warranty and Quality Information

3. Team Experience

Business Plan/Marketing Strategy

Product/Process Benchmark Data

Product/Process Assumptions

Product Reliability Studies

Customer Inputs

Outputs

Design Goals

Reliability and Quality Goals

Preliminary Bill of Material

Preliminary Process Flow Chart

Preliminary Listing of Special Product and Process Characteristics

Product Assurance Plan

Management Support

2. PRODUCT DESIGN AND DEVELOPMENT

This section discusses the elements of the planning process during

which design features and characteristics are developed into a near final

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form. The Product Quality Planning Team should consider all design

factors in the planning process even if the design is owned by the customer

or shared. The steps include prototype build to verify that the product or

service meets the objectives of the Voice of the Customer. A feasible design

must permit meeting production volumes and schedules, and be consistent

with ability to meet engineering requirements, along with quality,

reliability, investment cost, weight, unit cost and timing objectives.

Although feasibility studies and control plans are primarily based on

engineering drawings and specification requirements, valuable information

can be derived from the analytical tools described in this section to further

define and prioritize the characteristics that may need special product and

process controls.

Inputs

Design Goals

Reliability and Quality Goals

Preliminary Bill of Material

Preliminary Process Flow Chart

Preliminary Listing of Special Product and Process Characteristics

Product Assurance Plan

Management Support

Outputs

Design Failure Mode and Effects Analysis (DFMEA)

Design for Manufacturability and Assembly

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Design Verification

Design Reviews

Prototype Build- Control Plan

Engineering Drawings (including math data)

Engineering Specifications

3. PROCESS DESIGN AND DEVELOPMENT

This section discusses the major features of developing a

manufacturing system and its related control plans to achieve quality

products. The tasks to be accomplished at this step of the product quality

planning process depend upon the successful completion of the prior stages

contained in the first two sections. This next step is designed to ensure the

comprehensive development of an effective manufacturing system. The

manufacturing system must assure that customer requirements, needs and

expectations are met.

Inputs

Design Failure Mode and Effects Analysis (DFMEA)

Design for Manufacturability and Assembly

Design Verification

Design Reviews

Prototype Build- Control Plan

Engineering Drawings (including math data)

Engineering Specifications

Material Specifications

Drawing and Specification Changes

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New Equipment, Tooling and Facilities Requirements

Special Product and Process Characteristics

Gages/Testing Equipment Requirements

Team Feasibility Commitment and Management Support

Outputs

Packaging Standards

Product/Process Quality System Review

Process Flow Chart

Floor Plan Layout

Characteristics Matrix

Process Failure Mode and Effects Analysis (PFMEA)

Pre-Launch Control Plan

Process Instructions

4. PRODUCT AND PROCESS VALIDATION

This section discusses the major features of validating the

manufacturing process through an evaluation of a production trial run.

During a production trial run, the Product Quality Planning Team should

validate that the control plan and process flow chart are being followed and

the products meet customer requirements. Additional concerns should be

identified for investigation and resolution prior to regular production runs.

Inputs

Packaging Standards

Product/Process Quality System Review

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Process Flow Chart

Floor Plan Layout

Characteristics Matrix

Process Failure Mode and Effects Analysis (PFMEA)

Pre-Launch Control Plan

Process Instructions

Measurement Systems Analysis Plan

Preliminary Process Capability Study Plan

Packaging Specifications

Management Support

Outputs

Production Trial Run

Measurements Systems Evaluation

Preliminary Process Capability Study

Production Part Approval

Production Validation Testing

Packaging Evaluation

Production Control Plan

Quality Planning Sign-Off and Management Support

5. FEEDBACK, ASSESSMENT AND CORRECTIVE

ACTION

Quality planning does not end with process validation and installation.

It is the component manufacturing stage where output can be evaluated

when all special and common causes of variation are present. This is also the

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time to evaluate the effectiveness of the product quality planning effort. The

production control plan is the basis for evaluating product or service at this

stage. Variable and attribute data must be evaluated. It is the obligation of all

suppliers to meet customer requirements on all characteristics. Special

characteristics must meet the indices specified by the customer.

Inputs

Production Trial Run

Measurements Systems Evaluation

Preliminary Process Capability Study

Production Part Approval

Production Validation Testing

Packaging Evaluation

Production Control Plan

Quality Planning Sign-Off and Management Support

Outputs

Reduced Variation

Customer Satisfaction

Delivery and Service

6. CONTROL PLAN

The purpose of this Control Plan methodology is to aid in the

manufacture of quality products according to customer requirements. It does

this by providing a structural approach for the design, selection and

implementation of value-added control methods for the total system. Control

Plans provide a written summary description of the systems used in

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minimizing process and product variation. The Control Plan does not replace

the information contained in detailed operator instructions. This

methodology is applicable to a wide range of manufacturing processes and

technologies. The Control Plan is an integral part of an overall quantity

process and is to be utilized as living documents.

An important phase of the process for quality planning is the

development of a Control Plan. A Control Plan is a written description of the

system for controlling parts and processes. A single Control Plan may apply

to a group or family of products that are produced by the same process at the

same source. Sketches as necessary, may be attached to the Control Plan for

illustration purposes. In support of a Control Plan, process monitoring

instructions should be defined and used continually.

In effect, the Control Plan describes the actions that are required at

each phase of the process including receiving, in-process, out-going, and

periodic requirements to assure that all process outputs will be in a state of

control. During regular production runs, the Control Plan provides the

process monitoring and control methods that will be used to control

characteristics. Since processes are expected to be continually updated and

improved, the Control Plan reflects a strategy that is responsive to these

changing process conditions.

The Control Plan is maintained and used throughout the product life

cycle. Early in the product life cycle its primary purpose is to document and

communicate the initial plan for process control. Subsequently, it guides

manufacturing in how to control the process and ensure product quality.

Ultimately, the Control Plan remains a living document, reflecting the

current methods of control, and measurement systems used. The Control

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Plan is updated as measurement systems and control methods are evaluated

and improved.

For process control and improvement to be effective, a basic

understanding of the process must be obtained. A multi-disciplined team is

established to develop the Control Plan by utilizing all the available

information to gain a better understanding of the process, such as:

Process Flow Diagram

System/Design/Process Failure Mode and Effects Analysis

Special Characteristics

Lessons Learned from Similar Parts

Team’s Knowledge of the Process

Design Reviews

Optimization Methods

The benefits of developing and implementing a Control Plan include:

1. Quality gets improved.

2. Customer gets fully satisfied.

3. Communication of any change in product, process, and control method

gets better.

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INTRODUCTION

Purpose:

Production Part Approval Process (PPAP) defines generic

requirements for production part approval, including production and bulk

materials. The purpose of PPAP is to determine if all customer engineering

design record and specification requirements are properly understood by the

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supplier and that process has the potential to produce product consistently

meeting these requirements during an actual production run at the quoted

production rate.

Applicability:

PPAP shall apply to internal and external supplier sites of bulk

materials, production materials, and production or service parts. For bulk

materials, PPAP is not required unless requested by your customer. A

supplier of standard catalogue production or service parts shall comply with

PPAP unless formally waived by the customer. Tooling shall be maintained

for standard catalogue items as long as the items are offered or stated as

being available.

1. GENERAL

The supplier shall obtain full approval from the customer product approval

activity for:

a) A new part or product

b) Correction of a discrepancy on a previously submitted part

c) Product modified by an engineering change to design records,

specifications or materials.

2. PPAP PROCESS REQUIREMENTS

Significant Production Run

For production parts, product for PPAP shall be taken from a

significant production run. This production run shall be from one hour to

eight hours, of production, and with the specific quantity to total a minimum

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of 300 consecutive parts, unless otherwise specified by the authorized

customer quality representative.

This run shall be manufactured at the production site using the

tooling, gauging, process, materials, and operators from the production

environment. Parts from each unique production process e.g. duplicate

assembly line and/or work cell, each position of a multiple cavity die, mold,

tool or pattern, shall be measured and representative parts tested.

For bulk materials, no specific no. of “parts” is required. If a sample is

required to be submitted, it shall be taken in a manner as to assure that it

represents “steady-state” operation of the process.

PPAP Requirements

The supplier shall meet all specified requirements, e.g. design records,

specifications, and for bulk material, the Bulk Material Requirements

Checklist. Any results that are outside specification are cause for the

supplier not to submit the parts, documentation and or records. Every effort

shall be made to correct the process so that all design record requirements

are met. If the supplier is unable to meet any of these requirements, the

customer shall be contacted for determination of appropriate corrective

action.

Inspection and testing for PPAP shall be performed by a qualified

laboratory. Commercial/independent test laboratories used shall be

accredited facilities. When a commercial laboratory is used, the supplier

shall submit the test results on the laboratory letterhead, or the normal

laboratory report format. The name of the laboratory that performed the

tests, and the date(s) of the tests, and the standards used to run the tests shall

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be indicated. Blanket statements of conformance are unacceptable for

any test results.

The supplier shall have the applicable items and records, listed below, for

each part, or family of parts, regardless of the part submission level. These

records shall be in a PPAP part file, or referenced in such file and be readily

available. The items below shall be readily available for customer use in

PPAP. The supplier shall obtain prior approval from the customer product

approval activity for exceptions or deviations to PPAP requirements.

Various Records in PPAP File

a) Design Records

b) Any authorized Engineering Change documents

c) Engineering Approval, when required

d) Design Failure Mode and Effects of Analysis, if supplier is design

responsible.

e) Process flow diagrams

f) Process Failure Mode and Effects Analysis

g) Dimensional Results

h) Records of material / performance test results

i) Initial process studies

1) General

2) Quality Indices

3) Acceptance criteria for initial study

4) Unstable processes

5) Processes with One-Sided Specifications or Non-Normal

Distributions

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6) Strategy When Acceptance Criteria Are Not Satisfied

j) Measurement System Analysis Studies

k) Qualified Laboratory Documentation

l) Control Plan

m) Part Submission Warrant (PSW)

n) Appearance Approval Report (AAR)

O) Bulk Materials Requirements Checklist

p) Sample Production Parts

q) Master Sample

r) Checking Aids

s) Customer-Specific Requirements

3.CUSTOMER NOTIFICATION AND SUBMISSION

REQUIREMENTS

Customer Notification

The supplier shall notify the responsible customer product approval activity

of any design and process changes. The customer may subsequently elect to

require a submission for PPAP approval.

Submission to Customer

The supplier shall submit for PPAP approval prior to the first production

shipment in the following situations unless the responsible product approval

activity has waived this requirement.

The supplier shall review and update, as necessary, all applicable items in

the PPAP file to reflect the production process, regardless of whether or not

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the customer requests a formal submission. The PPAP file shall contain the

name of the responsible customer product approval activity person granting

the waiver and the date.

4. SUBMISSION TO CUSTOMER- LEVELS OF

EVIDENCE

Submission Levels

The supplier shall submit the items and/or records specified by the level as

requested by the customer:

Level 1 – Warrant only (and for designated appearance items, an

Appearance Approval Report) submitted to the customer.

Level 2 – Warrant with product samples and limited supporting data

submitted to the customer.

Level 3 – Warrant with product samples and complete supporting data

submitted to the customer.

Level 4 – Warrant and other requirements as defined by the customer.

Level 5 – Warrant with product samples and complete supporting data

available for review at the supplier’s manufacturing location.

The supplier shall use level 3 as the default level for all submissions

unless specified otherwise by the responsible customer product approval

activity. A supplier of bulk material only shall use level 1 as the default level

for all bulk material PPAP submissions unless specified otherwise by the

responsible customer product approval activity.

5. PART SUBMISSION STATUS

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General

The supplier shall be notified by the customer of the disposition of the

submission. After production part approval, suppliers shall assure that future

production continues to meet all customer requirements.

Customer PPAP Status

Full Approval indicates that the part or material meets all customer

specifications and requirements. The supplier is therefore authorized to ship

production quantities of the product subject to releases from the customer

scheduling activity.

Interim Approval permits shipment of material for production requirements

on a limited time or piece quantity basis. Interim Approval will only be

granted when the supplier has:

clearly defined the root cause of the non-conformities preventing

production approval; and

Prepared an interim approval action plan agreed upon by the

customer. Re-submission to obtain “full approval” is required.

Material covered by an interim approval that fails to meet the agreed-

upon action plan either by the expiration date or the shipment of the

authorized quantity will be rejected. No additional shipments are authorized

unless an extension of the interim approval is granted.

For bulk materials, the supplier shall use the “Bulk Material Interim

Approval” form, or its equivalent.

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Rejected means that the submission, the production lot from which it

was taken, and accompanying documentation do not meet customer

requirements. Corrected product and documentation shall be submitted and

approved before production quantities may be shipped.

6. RECORD RETENTION

Production part approval records, regardless of submission level, shall be

maintained for the length of time that the part is active plus one calendar

year.

The supplier shall ensure that the appropriate PPAP records from a

superseded part PPAP file are included, or referenced in the new part PPAP

file.

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