vsme

Harita Seating Systems

Our VSME journey

17th Jul 2013 Harita Seating Systems Ltd. 1

Harita Seating Systems

Established in 1988 (Part of TVS Group)

Sales : Rs 2700 Mn in FY13 Nalagarh,Himachal

PantnagarFacilities : 5 Plants & 1 R&D center

Capacity : 1 million seats per annum Jamshedpur,Jharkhand

Pantnagar,Uttarakhand

Employees : 650

Certification :

Jharkhand

Ranjangaon,

– ISO/TS 16949, ISO 14001 & OHSAS 18001

j g ,Maharashtra

Hosur,Tamil Nadu2260

29002700

2500

3250

Tamil Nadu

1320

1750

2260

1000

1750

2500


1000

FY09 FY10 FY11 FY12 FY13

Commercial Vehicle Segment

Seating Systems for …..Commercial Vehicle Segment

Off‐road Vehicle Segment Tractor Segmentg g

Bus Passenger Segment

Bus segm

ent

dard Segmen

t

uxe segm

ent

eluxe Segm

ent


City B

Stan

d

Delu

Semi D

e

Harita’s Customer profile

Driver Seats

Off-roadCV

Passenger Seats

Bus - OEM Bus - STU

Tractors C E

Market share


Market share Domestic55 % 45 % 12 %50 %

Need & Uniqueness of Harita’s VSME Journey …

Increasing Customer Expectations

Fluctuating Customer Demand

Inadequate Supply Chain Responsivenesse a d espo s e ess

Embarked VSME Journey without the involvement of OEMs


Embarked VSME Journey without the involvement of OEMs

VSME Journey …

Transform Organisation

Do, Demonstrate & Support

Customers

Preferred Supplier

community

Win Win


Win Win Relationship

VSME Supply Chain structure

TractorW H

ManufacturerModel Line

TractorSeat Assembly

Ware House

Child part & Proprietary

External Supplier

CustomerTAFE – DBRTAFE - MDU

Ti 0 (T0)

Internal Supplier

Powder coating

External Supplier Tier 0 (T0)OEM Prodn. line

Upholstery

Internal Supplier

WeldingFabricationSingle source to M/s. TAFE,since 1988 and JIT supplies

Contribution to 1 %

Low efficiency O


sales – 15% and higher OT

Annual VSME Journey Results

Tier relationship evaluation Customer & Harita Harita & Supplier

Customer Recognition

• Delivery performance to TAFE ALL PLANTS has improved from 18% in May12 to 85% in 1st week of May

• Delivery performance of HSSL to TAFE DBR plant has improved from 60% to 100% during H2 of 2012-13

• TAFE vehicle waiting in Harita has decreased from 4times/month to 1time/month during

evaluation

Tang

ible

Mea

sura

ble)

• No of OK DAYS from VSME suppliers has improved from 60% in Sep12 to 90% in Apr13

• Quality of BOR parts from VSME T2s has improved from 4000ppm to less than 500ppm from the month of March

• The productivity index for all T2s has gone up from 41% to upto 410% during FY13

In Dec 2012, Mr.Kumaradevan of TAFE mentioned at Chennai Airport that he had positive feedback from his team on Harita’s ability to respond to their requirementsfrom 4times/month to 1time/month during

FY13

(bl

e

easu

red

but f

elt)

• In feb13, 9 months after the start of VSME with Tractor cell as model T1, TAFE, the main customer of model T1 line recognized Harita as the best supplier in the overall performance category in the vendor conference at Chennai

In Dec 2012 Mr K marade anof TAFE

• During the meeting with T2 CEOs after first CEO review, the CEO of LR INDUSTRIES thanked Harita for improved trust levels between Harita and the T2s

• 2 out of 4 T2 CEOs expressed their improved confidence level to have open discussions with H it i th T2 it l i h ld d i

team on Harita s ability to respond to their requirements based on the VSME exercise

On 11th & 12th April 13, 3 CEOs of T2 has expressed their pleasure to go through the S t ti th di l ti b d t i

In-ta

ngib

(Whi

ch c

anno

t be

me • In Dec 2012, Mr.Kumaradevan of TAFE

mentioned at Chennai Airport that he had positive feedback from his team on Harita’s ability to respond to their requirements based on the VSME exercise

• On 29/4/13, the buyer at TAFE MDU thanked Harita by email for excellent support given in 2012-13

Harita in the T2 community learning held during Q2 2012-13

• On 11th & 12th April 13, 3 CEOs of T2 has expressed their pleasure to go through the systematic, methodical, time bound process to improve their competitiveness

Systematic, methodical, time bound process to improve their competitiveness

Annual Goals & Achievements Win Win Supply Chain relation


Annual Goals & Achievements Win – Win Supply Chain relation

Annual VSME Journey Results81 00

Delivery Performance18.00

81.00 350 %

May'12 May'13

59 00

74.70 1.99

2.95 26.6 % 48.2 %

59.00

May'12 May'13 May'12 May'13

Line Efficiency Productivity


Line Efficiency oduct ty

Top management & Employee Involvement

Promotional Jackets provided for Employees Union Employees addressed on VSME progress

Directors & Group CEO debriefed Customer debriefed


Directors & Group CEO debriefed Customer debriefed

VSME Results of our suppliers

SuppliersProductivity Improvement

SpaceSaving

Matl. travel DistanceReductionReduction

JIT Auto Comp 441 % 71% 78%Mahaalakshmi Enterprises 70% 8 5% 42%Mahaalakshmi Enterprises 70% 8.5% 42%

Sri Sudharshan Industries 119% 62.5% 79%

L R Industries 25% 13% 95%L R Industries 25% 13% 95%

Products Manufacturer of Sheet metal pressed and Fabricated assemblies

Major Customers M/s. Harita Seating Systems Limited

M/s. Ashok Leyland Limited

M/s. BEML Limited


Turnover Rs. 50 Million / annum

Why JIT Auto?

Potential for Development

(Good Attitude)Procurement in Rs. Lacs

30.0 32.5

24.0

Performance Measure

FY 12

12.5

FY 09 FY 10 FY 11 FY 12 FY 13

?? On time delivery % 21 %

Quality in PPM 2805

CEO required Guidance Desperate for Survival(R t i t)

FY 09 FY 10 FY 11 FY 12 FY 13

C O equ ed Gu da ce (Resource constraint)

Harita decided to re‐induct JIT auto and support during FY13


Harita decided to re induct JIT auto and support during FY13

Tier relationshipN

Relation with customersSales in Rs. Mn

New premises

constructed

30.0 32.5

20,000 20,000 Additional Shed

Build Area in SqFt

24.0 12.5

FY 09 FY 10 FY 11 FY 123,000

5,000

rented

FY 09 FY 10 FY 11 FY 12Harita Total FY 09 FY 10 FY 11 FY 12

Non competitive Poor Performance

CEO Estimated his sales to drop below 10 million by end of FY 12

17th Jul 2013 JIT Auto Comp 13

CEO Estimated his sales to drop below 10 million by end of FY 12

Harita’s approach to VSME at Supplier end

VSME Methodology

Flow Based ImprovementHarita along with 4 suppliers registered

during May’12

Order – Instruct - Check

g y

Order Instruct Check

Cluster Community

Process Based Improvemennt

Quality System Support


Improvemennt Support

Do – Demonstrate – Support by HaritaDO (J ’12)

Demonstrate (Aug’12)

DO (Jun’12)3S Map

Implementation @ Harita

Demonstration at Harita

DDS => 3S Map, V Map1 & 3 & Heijunka

Demonstration at Harita

All project members incl. T1 CEO

Debrief on 3S Map learning

S (A & S ’12)

Demonstration on model line

Support at JIT Auto

T1 PH & FHs supporting T2 Support (Aug & Sep’12)T1 PH & FHs supporting T2

Observation incl. periphery

Support in 3S Map preparation,

Improvements identification

DDS methodology was followed by Harita through out the journey for all Suppliers


DDS methodology was followed by Harita through out the journey for all Suppliers

Community activity between Suppliers

Cross Learning

Sharing Best PracticesLR Team @ JIT Auto

Points of View

LR Industries participated in JIT Auto V Map 3 Impl And Vice versa

Resource Sharing Points of ViewUnconventional Angle


LR Industries participated in JIT Auto V Map 3 Impl. And Vice versa

Illustration of Material flow before VSME implementation

Material Flow & Inventory mapping

Space utilized for production of model line parts


Illustration of Material flow after V Map 3 Implementation


Snap shot of achievements through VSME Journey

Before & After – Assembly Carrier Plate welding line

– Space for model line parts production reduced by 71 %

– Material flow distance reduced by 78 %


Annual VSME Journey Results89

Delivery Performance23

89 287 %

May'12 May'13

73.00 78.00 14.7 16%

441 %

Dec'12 May'13

2.7

May'12 May'13

Line Efficiency Productivity


Line Efficiency oduct ty

Results with Harita

PerformanceDelivery Performance % Quality Performance (ppm)

89287 %

2,805 68 %

23889

May'12 May'13May'12 May'13

Business Trend Demonstrator for next year diffusion

May 12 May 13

30 0 32.5 34.5

Sales in Rs. Lacs

y30.0 32.5

24.0

12.5


FY 09 FY 10 FY 11 FY 12 FY 13

We commit to continue our Journey to build community

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We commit to continue our Journey to build community

Thank You


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