Description
This case is about how Lucas TVs go through change management and implement cellular layout by involving people of the organization and how leadership affects the process of change.
LUCAS-TVS A Journey Towards Manufacturing Excellence
Presented By Shashank Goswami Shubham Tiwari Shashank Parulkar Shrey Vasa Sidhharth Dubey Smit Shah
About LUCAS-TVS
? Joint Venture between Lucas Varity, UK and T V Sundaram Iyenger & Sons (TVS), India in 1961. ? Net Sales of Rs. 457.8 Cr & Net worth of Rs. 280 Cr. In Year 1998 ? Company has two divisions- Auto Electrical division and Fuel Injection equipment division. ? Produces a complete range of auto electrical product from starters to wipers and diesel fuel injection equipment for direct & indirect diesel engines. ? Company also has a 50:50 JV with Koito Manufacturing Company japan, Indian Japan lighting System.
Issues and challenges
Production ?Excess capacity utilization resulting in high Inventory ?Variety of products ?Process layout- low space utilization - Criss crossing of material - High lead time of 30 days ?Inefficient suppliers and primitive technology ?High rejection rate ? 3% scrap rate was too high
Issues & challenges
Finance & Marketing ? Low investment on Training and skill development ? Because of new market entrants like Bosch & Denso, marketing needed to be cost effective.
Human Resource ? Changing the mind set of workers for new technology adaptation. ? Convincing the workers for new multifunctional roles
Product Layout
? Product layouts are found in flow shops , repetitive assembly and process or continuous flow industries.
? Flow shops produce high-volume, highly standardized products that require highly standardized, repetitive processes. ? resources are arranged sequentially, based on the routing of the products.
Cellular layout
? To Eliminate all non value adding activities. ? To implementing cellular layout entire manufacturing unit was divided into cells. ? Relocate equipments and machiner to create focused factories. ? Operators are responsible for multiple tasks. ? Reduced work in progress, wait time, finished goods. ? Require less space, direct labor. ? Each cell is responsible for internal control, scheduling, ordering and record keeping.
Product Vs Cellular
Implementation
? All layout changes took place during the week-ends to avoid stoppage. ? Planning at operating level focused on individual process flow. ? Follow hierarchical, modular approach
Company (Lucas-Tvs) Site (Padi Plant) Unit (Alternator) Module (Rotor) Cell (Yoke Machining) Individual(Work station)
? Form NAGRA cell to achieve productivity gains and operational flexibility.
“NAGARA” Cell
Transformation in PADI Plant
sales value (Rs. In Million)
4000 3000
sales per Employee
2 0.196 0.48
?
1466.9 609.8 1985 1991
3178.2
1.107
2000
1000 0
sales value
0
1985 1991 1998
sales per Employee
1998
space utilization index
5 1 0 1985 1991 1998 4.33 2.03 20 space utilization index 10 0 4.2
inventory turn
14 inventory turn
7.2
1985 1991 1998
CURRENT STATUS
CURRENT STATUS
? The Chennai-Padi plant’s product list includes Wiper motors, Starter Motors , Mechanical/electronic distributors and Alternators. ? Every 4 out of 5 vehicles rolled out daily are fitted with Lucas-TVS products. ? Over 70% of the current sales turnover is realised from new products developed by in-house R&D. ? Products are manufactured using State-of-the-Art facilities and approach towards Total Quality Management.
THANK YOU !!
doc_108712627.pptx
This case is about how Lucas TVs go through change management and implement cellular layout by involving people of the organization and how leadership affects the process of change.
LUCAS-TVS A Journey Towards Manufacturing Excellence
Presented By Shashank Goswami Shubham Tiwari Shashank Parulkar Shrey Vasa Sidhharth Dubey Smit Shah
About LUCAS-TVS
? Joint Venture between Lucas Varity, UK and T V Sundaram Iyenger & Sons (TVS), India in 1961. ? Net Sales of Rs. 457.8 Cr & Net worth of Rs. 280 Cr. In Year 1998 ? Company has two divisions- Auto Electrical division and Fuel Injection equipment division. ? Produces a complete range of auto electrical product from starters to wipers and diesel fuel injection equipment for direct & indirect diesel engines. ? Company also has a 50:50 JV with Koito Manufacturing Company japan, Indian Japan lighting System.
Issues and challenges
Production ?Excess capacity utilization resulting in high Inventory ?Variety of products ?Process layout- low space utilization - Criss crossing of material - High lead time of 30 days ?Inefficient suppliers and primitive technology ?High rejection rate ? 3% scrap rate was too high
Issues & challenges
Finance & Marketing ? Low investment on Training and skill development ? Because of new market entrants like Bosch & Denso, marketing needed to be cost effective.
Human Resource ? Changing the mind set of workers for new technology adaptation. ? Convincing the workers for new multifunctional roles
Product Layout
? Product layouts are found in flow shops , repetitive assembly and process or continuous flow industries.
? Flow shops produce high-volume, highly standardized products that require highly standardized, repetitive processes. ? resources are arranged sequentially, based on the routing of the products.
Cellular layout
? To Eliminate all non value adding activities. ? To implementing cellular layout entire manufacturing unit was divided into cells. ? Relocate equipments and machiner to create focused factories. ? Operators are responsible for multiple tasks. ? Reduced work in progress, wait time, finished goods. ? Require less space, direct labor. ? Each cell is responsible for internal control, scheduling, ordering and record keeping.
Product Vs Cellular
Implementation
? All layout changes took place during the week-ends to avoid stoppage. ? Planning at operating level focused on individual process flow. ? Follow hierarchical, modular approach
Company (Lucas-Tvs) Site (Padi Plant) Unit (Alternator) Module (Rotor) Cell (Yoke Machining) Individual(Work station)
? Form NAGRA cell to achieve productivity gains and operational flexibility.
“NAGARA” Cell
Transformation in PADI Plant
sales value (Rs. In Million)
4000 3000
sales per Employee
2 0.196 0.48
?
1466.9 609.8 1985 1991
3178.2
1.107
2000
1000 0
sales value
0
1985 1991 1998
sales per Employee
1998
space utilization index
5 1 0 1985 1991 1998 4.33 2.03 20 space utilization index 10 0 4.2
inventory turn
14 inventory turn
7.2
1985 1991 1998
CURRENT STATUS
CURRENT STATUS
? The Chennai-Padi plant’s product list includes Wiper motors, Starter Motors , Mechanical/electronic distributors and Alternators. ? Every 4 out of 5 vehicles rolled out daily are fitted with Lucas-TVS products. ? Over 70% of the current sales turnover is realised from new products developed by in-house R&D. ? Products are manufactured using State-of-the-Art facilities and approach towards Total Quality Management.
THANK YOU !!
doc_108712627.pptx