Application for DL Shah Quality Award Submitted By: National Industries, Ludhiana Sector: Manufacturing- Small (other than Pharma & Food, Code- C2) Date of Submission: 31.12.14 1
Contact Details Company Name : National Industries Address : E-128, Phase-IV, Focal Point Ludhiana 141010 (Punjab) Chief Executive : Mr. Bikram Bembi Email : bbembi@nationalindustries.in Contact No. 01614696666 Project Leader: Mr. Dilbag Singh Email : quality@nationalindustries.in Contact No. 09356318017 2
Case Study Presentation By National Industries 3
Project Leader To reduce the cost of poor quality (Cost of failures) on the part Ford Head Rest B 515 Rear Start Date: Mar. 14 Completion Date: Nov. 14 Team Members Dilbag Singh GM, Production Shamsher Singh HOD T/R & Maintenance Kishor Thakur Line Supervisor Ajay Mehra Sr. Engg.QA 4
COMPANY PROFILE Our company is part of METALMAN GROUP Established in 1976. Manufacturer of Sheet metal, Tubular, Light fabricated assemblies, Sub-Assemblies. In-house modern Ni-Cr Plating plant Total Employee Strength = 300 nos. 5 Group companies, Total 9 Manufacturing Plants First in India to develop Tubular Head rest Our Group Companies 45 Sales Annual Turn Over ( INR Crore) 35 28.06 30.16 32.73 35.16 25 2010-11 2011-12 2012-13 2013-14 5
Key Products / Product Families Customers 6
Presentation Topics : 1. Problem Identification. 2. Data Collection. 3. Problem Analysis. 4. Development of Solution & its Implementation. 5. Results & benefits. 6. Standardization. 7. Horizontal Deployment. 7
Details about the Head Rest Head restraints are an automotive safety feature, attached or integrated into the top of each seat to limit the rearward movement of the adult occupant's head. This is the Headrest B 515 Rear for Ford (Eco-sport) Vehicle. There are lot of Quality problems observed in this part while manufacturing in our company. The demand/month has increased from 22000 No s(2013 2014) to 32000 No s (2014-2015) i.e. increase of 31% in customer demand / month. 8
Problem Identification Step 1 Problem was selected based on Following : High in-house rejection & rework PPM High Customer rejection PPM More Customer complaints High COPQ Following data was collected: 1. In process rejection / rework PPM 2. Defect wise data Monthly trend, Pareto 3. PPM at Customer end Monthly trend 4. Customer complaints Monthly trend 5. Cost of poor quality 9
Cost of Poor Quality ( COPQ ) Cost of Failures Internal Failures External Failures Rejection cost Rework cost Customer complaint attending cost Cost of Rework & segregation at customer end Cost of Customer returned material (Segregation/rewor k/scrap cost) 10 10
Cost of poor Quality for Ford Head Rest B515 Rear Apr 13 Mar 14 (One Year Data) 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 Internal COPQ in Rs. 8169 6277 5045 3862 3740 3910 2320 1818 970 8133 3759 Apr-13 May-13 June-13 July-13 Aug-13 Sept-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 7528 COPQ in Rs Target = Rs 3000 100000 External COPQ in Rs. 80000 60000 72972 87714 65329 External COPQ in Rs. 40000 20000 0 33247 27859 37903 27446 17007 20133 19112 16200 17222 Apr-13 May-13 June-13 July-13 Aug-13 Sept-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Target = Rs 18000 11 11
Data shown below for Ford Head Rest B 515 Rear & front both 1000000 800000 600000 768000 Customer Schedule Apr 13- Mar 14 (One Year Data) 577000 Customer demand is increasing by 31% in next one year 400000 200000 0 165000 154000 80000 FORD NISSAN MARUTI GM VolksWagen 8000 7000 6000 5000 4000 3000 2000 1000 0 6700 In-house rejection PPM Apr 13- Mar 14 (One Year Data) 900 1020 1900 1190 FORD NISSAN MARUTI GM VolksWagen 6000 5000 4000 3000 2000 1000 0 5700 Customer rejection PPM Apr 13- Mar 14 (One Year Data) 1300 0 800 700 FORD NISSAN MARUTI GM VolksWagen 1212
5000 4000 3000 2000 1000 National Industries, Ludhiana 0 In-house rejection PPM Apr 13- Mar 14 (One Year Data) 1900 Front 4500 Rear We have selected Ford Head Rest B515 Rear because of more PPM 2500 2000 1500 1000 500 0 Customer rejection PPM Apr 13- Mar 14 (One Year Data) 2143 Front 3600 Rear B515 Rear Head Rest 1313
We have selected Ford Head Rest B 515 product because 1. It has high rejection / rework PPM at Inhouse & at Customer end. 2. It has more Customer complaints 3. It has high cost of poor quality. 4. It is safety critical part & having high safety severity. 14 14
Qty National Industries, Ludhiana Cumulative % 500 450 400 350 300 250 200 150 100 50 0 475 26.61% 424 50.36% 376 Defect wise Pareto B 515 Rear Apr 13 Mar 14 71.43% 78.66% 129 118 85.27% 89.30% 72 65 100.00% 92.94% 95.63% 97.98% 100 Major Rejection Reasons in B515 Rear ( Ford Head Rest ) 48 42 36 80 60 40 20 0 15 15
Potential impact of Quality problems on Car user/ Customer Assembly Line. S. No. 1 Quality Problems in Ford Head Rest Leg to Leg variation Potential impact on car user/ Customer Assembly Line. Part may not fit in Fixture, may not assemble at customer end. 2 Notch depth undersize Part may come off during accident/car running & may cause neck injuries to car user. 3 Notch Misalignment Part will came off during accident/car running & may neck injuries to car user. 16 16
Defect Wise PPM Details in Ford Head Rest B 515 Rear S. No. Rejection Reason Photo Disposal Action In-house PPM Customer PPM 1 Leg to Leg variation Scrap 1600 426 2 Notch depth undersize Scrap 1500 300 3 Notch misalignment Scrap 1490 260 17 17
PPM PPM PPM Qty National Industries, Ludhiana Data Collection Step 2 Monthly Trend of Rejection PPM/ Rework PPM / Customer PPM & Customer complaints : Apr 13 Mar 14 (One Year Data) 5000 4000 3000 2000 1000 0 2206 2650 3200 3540 Rejection PPM - EOL (End of line) 2846 2784 3000 2955 3054 2800 3156 3142 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Target = 500PPM 2000 0 Rework PPM - EOL (End of line) 1205 1400 1326 1164 1256 1154 1123 1400 1260 1250 1230 1134 Rew. PPM Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Target = 500PPM 10000 5000 0 8560 8412 4600 2356 3400 Customer PPM 5135 3510 3205 3645 3545 875 1989 Target = 100PPM Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 4 3 2 1 0 2 1 1 Customer Complaints 0 2 1 3 2 2 2 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 0 3 Target = 0 18 18
Process Flow Chart : Before Apr 13 Mar 14 Input Material 1 st Bend 2 nd Bend 3 rd Bend Re-striking Welding 2 nd Milling 1 st Milling Gauging Polishing Plating Final Insp. Packing & Dispatch 19 19
Process Flow Chart ( 3D view of product shape change during the processes ) Apr 13 Mar 14 Input Material 1 st Bend 2 nd Bend 3 rd Bend Re-striking Welding 2 nd Milling 1 st Milling Gauging Polishing Plating 20 20
Problem Analysis Step 3 S. No. Problem Root cause Action planned 1 Leg to Leg variation In 2 nd bending operation bending is done in two different strokes of power press. Part is not clamped properly with toggle which cause leg to leg variation. Two bend strokes to be done in single stroke uniformly so that no any variations in leg difference. 2 3 Notch depth undersize Notch misalignment Cutter worn out frequently causes depth variation ( Process capability is low ) Notches are made on two different milling machines therefore Notch alignment within ±0.5mm is difficult to maintain. ( Process is not capable ) Broaching operation to be done in place of Milling for better process capability. 21 21
Yellow highlighted operations are problematic In 2 nd bending Leg to leg variation photo Input Material 1 st Bend 2 nd Bend 3 rd Bend Re-striking Welding 2 nd Milling 1 st Milling Gauging In 1 st & 2 nd Milling Notch misalignment & Notch depth undersize Polishing Plating 22 22
Development of Solution & its Implementation Step 4 Improvements Done to reduce the Quality problems Apr 14 Nov 14 Improvement 1 2 nd Bending Two bend strokes of Power press Converted in single stroke of SPM, Leg to leg variation is eliminated. Hydraulic SPM developed in-house. Improvement 2 1 st Milling & Two Milling operations converted 2 nd Milling into single Broaching operation. Notch misalignment & Notch depth variation is eliminated. Broaching machine developed in-house. 23 23
Before Improvement 1 After 2 nd bending is done on power press in two bend operations causing leg to leg variations. 2 nd bending is done in Single Bending operation. This has eliminated leg to leg variation. Hydraulic SPM is developed in-house. 2 24 24
Before Improvement 2 After Milling 1 st & 2 nd is done separately causes notch depth variation & notch misalignment. Introduced Broaching process. Broaching M/c developed In-House. Notch Depth Undersize & Notch misalignment Problem Eliminated. 25 25
Process Flow Chart : After Apr 14 Nov 14 1. Two milling machines eliminated & one Broaching machine added 2. 2nd bending is done in Single Bending operation Input Material 1 st Bend 2 nd Bend 3 rd Bend Re-striking Welding Broaching Gauging Polishing Plating Final Insp. Packing & Dispatch 26 26
Process Flow Chart ( 3D view of product shape change during the processes ) Apr 14 Nov 14 1. Broaching process implemented by eliminating two Milling processes. 2. 2 nd Bending operation is done in one stroke in place of Two press strokes. Input Material 1 st Bend 2 nd Bend 3 rd Bend Re-striking Welding Gauging Broaching Polishing Plating 27 27
Poka Yoke Implemented Apr 14 Nov 14 Poka Yoke Operations Before After Poka Yoke 1 1 st Bending Leg to leg variations found : during bending operation sometimes part ot butt with end stopper due to which bending variation found. If the part fails to butt with stopper,the machine operation will not Takes place. For this an electrical Continuity circuit has been Provided. Poka Yoke 2 2 nd Bending Leg to leg variations found : during bending operation sometimes part is not butt with end stopper due to which Bending variation found. If the part fails to butt with stopper,the machine operation will not Takes place. For this an electrical Continuity circuit has been Provided. Poka Yoke 3 Broaching Notch misalignment : part is not in contact with reference Stopper causes notch misalignment If the part fails to butt with stopper,the machine operation will not Takes place. For this an electrical Continuity circuit has been Provided.. 28 28
Input Material National Industries, Ludhiana Line Layout : Before Apr 13 Mar 14 * Zig-Zag Material Flow: More dents/damages while material movement Total work stations = 8 Total operators = 8 Countermeasure :Single pc flow to be implemented by changing line layout. * These are offline operations 29
Better National Industries, Ludhiana Results & benefits Step 5 Process Capability : Notch Alignment Before Notch alignment 0±0.5 variation upto 1.35 mm causes Rejections & more customer complaints. After Notch alignment 0±0.5 achieved with In controlled limits. Before After 2 30 30
Better Process Capability : Notch Depth Before Notch depth 1.5+0.2/-0.0 mm variation causes more in-house rejections. After Notch depth is achieved with in control limits. Cpk required: >1.67 Before After 2 31 31
Achieved Zero PPM at FORD Motors 32 32
Better Better Key Benefits Achieved 332 33
Key Benefits Achieved Before After 5000 4000 3000 2000 1000 0 2206 Rejection PPM - EOL (End of line) (Apr'13 - Mar'14) 2650 3200 3540 2846 2784 3000 2955 3054 2800 3156 3142 5000 4000 3000 2000 1000 0 1600 1806 2806 2654 Rejection PPM - EOL (End of line) (Apr'14 - Nov'14) 2250 1635 1820 1765 5000 4000 3000 2000 1000 0 Rework PPM - EOL (End of line) Before (Apr 13 - Mar'14) 1205 1400 1326 1164 1256 1154 1123 14001260 1250 12301134 5000 4000 3000 2000 1000 0 1100 890 Rework PPM - EOL (End of line) (Apr'14 - Nov'14) 1252 1123 1065 860 1120 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 920 2 1 Customer Complaints (Apr'13 - Mar'14 2 1 2 1 3 2 2 2 3 2 Customer Complaints (Apr'14 - Nov'14) 1 1 1 0.5 0.5 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 342 34
Better Better Key Benefits Achieved Customer Rejection PPM 352 35
Input Material National Industries, Ludhiana Line Layout : After Apr 14 Nov 14 Single pc flow : No dents / damages Total work stations = 7 Total operator = 5 36
Better Better By implementing single pc flow following additional benefits have been achieved 372 37
Better Better 382 38
Better Better 392 39
Financial Benefits 1. Direct Cost Saving (Annual) : 6.45 Lac 2. Saving on Internal COPQ (Annual): 0.19 Lac 3. Saving on External COPQ (Annual): 2.02 Lac 4. Saving on New Investments : 5.10 Lac (by making In-house m/cs) 3. Increase in Production (Annual) : 182000 Nos. 4. Increase in Profits (Annual) : 14.56 Lac 5. Total Cost incurred for implementation : 8.25 Lac 6. Net Financial Benefits (Annual) : 21.65 Lac 2 40 40
Standardization Step 6 PFD, Control Plan, FMEA, Work Instructions have been revised 4 nos. of Poka Yoke have been documented on the Poka Yoke Sheet Poka Yoke Daily check sheet has been made. 10 nos. of Kaizens have been documented on the Kaizen sheet Standard Operating Procedure is made for the newly developed operations. 2 41 41
42 42
Poka Yoke Daily Check Sheet 432 43
Zone / Machine/ Production Dept etc. HR Line Poka Yoke Sheet National Industries Problem Origin Bending Dimension Variation (Leg difference) Customer Internal Process Complaint Problem Improvement Detection Alarm Process 2nd Bending Control Solution Key Improvement Electrical Circuit Installed. If part not butting with stopper, electrical Circuit will not complete, M/c will not run. Prevention Shut Down Before Improvement: After Improvement: Part Pushed by Toggle Clamp for each press Stroke Part Properly Butt with Stopper What When Why How Ist Side Bending 2nd Side Bending Poka Name / s Shamsher Singh Date 15/8/2014 Yoke No. 01 44 44
Zone / Machine/ Production Dept etc. HR Line Poka Yoke Sheet National Industries Problem Origin Notch Dimension Variation (Notch Mis-alignment) Customer Internal Process Complaint Problem Improvement Detection Alarm Process Notching Control Solution Key Improvement Electrical Circuit Installed. If part not butting with stopper, electrical Circuit will not complete, M/c will not run. Prevention Shut Down Before Improvement: After Improvement: Part Placed Manually Towards the gauge for 2 Milling Operations. Part Properly Butt with Stopper What When Why How Ist Side Milling 2nd Side Milling Poka Name / s Shamsher Singh Date 22/8/2014 Yoke No. 01 45 45
462 46
Horizontal deployment Step 7 Horizontal Deployment in Similar Six Headrest lines is in progress Intangible Benefits : 1. 5S Improved. 2. Customer satisfaction improved. 3. Employees Morale improved. 4. Work culture towards continuous improvement. 247 47
.. WELCOME FOR ANY QUESTIONS & SUGGESTION