 India's largest paint company

 Ranked among the top ten Decorative coatings

companies in the world 
 Turnover of INR 66.80 billion
 Operations in 17 countries across the world
with 23 paint manufacturing facilities
 Service consumers in 65 countries  through
Berger International, SCIB Paints – Egypt, Asian
Paints, Apco Coatings and Taubmans.
 “Reliability is one of the solid pillars on which
SCM rests upon & functions effectively ” Vikram
Jaisinghani, GM-Manufacturing
 Divides whole Supply chain into
◦ Aids/Enablers
◦ Drivers
 Aids: Encompass all software tools such as planners,
B2B solutions, schedulers etc.
 Drivers: Ground realities -> can be show-stoppers if
not handled properly & taken care immediately(this is
Reliability is all about) -> ‘R’ factor

 Five pillars of Reliability

◦ Quality
◦ Environment
◦ Safety
◦ People
◦ Materials
 Six Sigma
Zero
Deviations

Millennium Quality
Policy Announced
All Plants certified
under ISO 9001: 2000
Standards
 ISO 9001: 1994 Improvements made
Systems in Quality Systems
Consolidation of New Areas like ESF,
Systems Dealer Tinting
Improving Quality Systems, 5S brought
A under the purview of
ISO 9001
1995 2000 2003
Quality Movements through the years
 Early nineties: Quality was inspection
 1992: APIL decided to work on ISO 9001-1987
 1995: Mumbai plant certified ISO 9001-1994 (First
Indian paint industry)
 1995- 1997: Patancheru & Ankelshwar certified ISO
9001- 1994 std
 1995- 1999: Consolidation of quality system
 Approval with deviations (AWD’s) & rejections
 2000: Millennium Quality Policy (Intent to do
things right the first time & Philips Crosby std of Zero
defects)
 New Areas like ESF, Dealer Tinting Systems, 5S
brought under the purview of ISO 9001
 Quality :- Process point of view than function
 20 key customer- impacting process: New product
introduction, customer feedback process, design &
development process, std process
 Post 2000- Zero deviation target and avoid recurrence
(but deviations were still plummeting)
 Shifted its focus to reworks
 Started training its employees in 6 Sigma (under banner
of Root Cause Analysis (RCA)) – 1st in manufacturing
function -> Supply chain & technical functions
 GM- Manufacturing (Six sigma black & quality
engineer (by ASQ))
 Factory managers – Six Sigma Green belt (reviews 6σ
projects)
 Train entire staff in 6σ green belt + 6 black belts
 6σ training was mandatory & they should deliver at least
one successful project in financial year -> linked to
performance feedback & measurement system
 Focus on problem-selection criteria (linked to business goals)
- > Project charter
 Team leader: calculates the cost of poor quality & difference
between entitlement & ‘As Is’ of process
 List of themes released by GM: (Critical business requirements)
◦ Cost
◦ Waste Minimization
◦ Cycle time
◦ Quality
◦ Standardization
 Factory Manager (Over all Champion)

Project Guide/ Project champion (Black belt)

Team Leader (Green belt)

Team members (Actual doers)

 Project Guide-> reviews the progress, gives inputs to the team

on proper statistical tool selection, data collection & analysis of the
results (ensures rigorous application of DMAIC methodology)
 Project champion -> supports & ensures ownership of all
implements (resource constraints, coordinates interdepartmental
issues, implement improvements)
 Team Leader -> ensures timelines are met, DMAIC methodology is
applied with adequate rigor & discipline
 Administration manager -> Cost-related projects are signed off
 Factory Manager -> Supports entire initiative & decides how the
RCA initiative is deployed in plant
 All improvements -> locked in financial budget or procedures of quality
system (current & future years)
 Shared with rest of the organization in the best practice meet
 2002-03-> Manufacturing function completed 102 projects
 APIL has increased the reach of 6σ from supply chain & technology to
rest of organization
 Some of the key challenges involved were:
◦ Reduce the data transfer time
◦ Reduce the risk
◦ Avoid interruption due to LAN/WAN downtime.
◦ Parallel availability of the switch for the other
administrative tasks during the same period..
 Six Sigma at Wipro simply means a measure of quality
that strives for near perfection
 1997-98 to 2006-07
◦ Black belts -> 13 to 180
◦ Projects -> 80 to 1500
◦ Saving -> 48 to 1800 (Million Rs)
The three dimensions of environment:

Material
Productivity

nt
Environme
Clean
Natural
Resource
Conservatio
n
Measures taken:
 MBA
 Daily monitoring system of all types of waste
generation at each source
 Segregation of waste into hazardous and non-
hazardous material and giving the required
treatment, Implementation of waste segregation
system.
 Optimizing batch cycles and streamlining
production scheduler
 Design of environment friendly ingredients-
based formulations
 Good manufacturing practices implemented at
the shop floor along with mass awareness
building, targeting reduction of waste at source
 Conserves natural resources
 Avoids waste treatment and disposal
 Reduces the need for addition of fresh raw
materials to the process
Initiatives taken:
Reduction in water solvent
disposal
 To achieve ‘Zero effluent disposal’:
 Improved effluent treatment facilities
 Stringent monitoring of input and output parameters
 Reduced discharge from plants due to:
 Installation of block level collection pits to monitor the
hydraulic and organic load
 Institution of equalization tank pre-formulating scheme to
ensure threshold organic content at ETP inlet, etc.
Precious natural resources Water
for paint industry Power
Fuel
 Water

 Mapping of water distribution network

 Identifying water consumption reduction opportunities
 Daily water reconciliation system across the plant
 Rain water-harvesting scheme
 Power and fuel
 Reduced process losses by initiatives such as
overall asset effectiveness, first pass yield, etc.
 Reduced power consumption due to
• Conversion of generator sets from HSD-based
to LDO-based
• Modifications to power intensive areas like ETP,
incinerator cold storage areas
Ongoing Environmental
Initiatives:
 The company's four paint plants and the two
chemical plants have the ISO 14001 certification for
environment management standards.
 Asian Paints has built a Total Water Management
(TWM) Centre, at its Bhandup manufacturing facility,
which is the first of its kind in the entire country.
 Paint plants -'zero industrial discharge' capability,
emulsion manufacturing facility-'zero waste' status,
principle of "green productivity".
 Asian paints operations falls under the ‘Hazardous process’
industry as per Factory act 1948
 APIL believes that positive safety culture are characterized by
communication founded on
◦ Mutual trust
◦ Shared perceptions of importance of safety
◦ Confidence in efficiency of preventive measures
 Safety is placed at the motivational center of the organization
 Operational effectiveness of manufacturing facility is
enhanced -> Shop floor is safe to work at -> there by frontline
people to channelize their energies on process, equipment health
 1999: Study to gauge the health of safety systems
 The concept of “Migration to World Class Standards”
 Aim: Improve existing safety systems, technical up
gradations to improve safety
 2002: All 4 manufacturing units started adopting ‘British
Safety Council standards’
 First Phase: Systematic approach of preparing the a safety
manual as per BSC requirements
 Next: Detailed gap analysis with reference to existing
system
 General Manger
(Manufacturing)

Factory
Safety
Representatives
Safety Productio Plant Other
Safety Personal
Executiv n Engg Manager
Officers Manager
es Manager Manager s
Internal
Trained
safety Safety Coorinators
Auditors
Plant Fire
First Aid Departmental
safety fighting
squad Safety commitee
committe squad
e
Members All employees
 Production Manager -> stand by for Factory
Mgr
 All safety reps -> nominate their 2nd in
charge (& mentioned in display board)
 Photographs of all starting from GM to
safety reps to be put along with name
 2002-2003: Inter-plant competition
 AP
◦ worked on guidelines of BSC
◦ Focus upon taking preventive measures
◦ Make operations mistake proof

 Benefits reaped : Reduction in the number of reportable

accidents
 4 plants is conferred with the 'Sword of Honor' by the
British Safety Council for the second time, considered the
pinnacle of achievement in safety across the world.
 Develop and implement occupational health and safety
management system to comply with TIS 18001 certified from the
management system certification institute (MASCI) since 2001 and
was OHSAS 18001 certified since 2004

 Implement preventive and corrective action to prevent hazard from

machinery, equipment, fire, chemical, and all moderate risks or
higher level including control all risk by setting up annual
occupational health and safety objective and target and
communicate to all relevant persons to perform for continual
improvement.

 Support suitable and sufficient resources including manpower, time,

budget and training program.

 Stress to all employees, contractors, and others working in its behalf

their responsibility and accountability for safe performance on the
job and encourage safe behavior off the job.

 Undertake appropriate reviews and evaluations of its operations to

measure progress and to ensure compliance with this safety policy.
Change Initiatives:
 Introduction of state-of-the-art technology, automation in
core operations as well as in storage, EHS facilities aiming at
reliable, safer and high-quality outputs
 Introduction of cultural initiatives such as 5S, TPM, RCA
aiming at improving effectiveness of operations
 Redefining existing performance parameters –goal for
quality redefined as ‘zero defect’ with ‘right first time’ and
‘continuous improvements’ as underlying philosophy.
 Shift from ‘volume-driven’ organization to one in
which changes are implemented with reliable
delivery of volumes
 Creating a more participative work environment
 Roles redefined, employees at lower levels
empowered
 Performance management system modified-
rewards linked to deliverables on the changed
expectations
Workmen:
 Productivity-based model-Activities measured,
quantified and converted into norms/outputs-
wages paid to workmen as per performance
against these standard outputs
 Assumptions of this model challenged by new
philosophy
 Cultural Interventions and settlements:
Role of workmen modified to address restrictive
practices, improve asset effectiveness and reward RFT
behavior
 Workmen encouraged to participate in change initiatives
Suitable reward mechanisms to recognize contribution
Empowered to take higher roles such as coordination of
change initiatives
Deterrents to combat inefficiency and absenteeism that
affected reliability of operations
Staff:
 Sources of staff recruitment examined
 Roles of employees redefined, jobs enriched by
giving higher order roles to staff
 Training programmes, awareness sessions held
 CFT formed to implement change initiatives
 Performance management systems and reward
mechanisms modified suitably
 Communication channels revamped
 Interplant competitions held
 Reliability is the heart and soul of supply
chain
 ‘R’ factor forms the core of supply chain –
has to be taken care of before
implementing enablers.
 Advantages- Straight savings, a serious
contribution to the bottom line.
 THANK YOU!!!

Team 3:

Jebsy Alexander MBA09018

Nithya.G MBA09027
Poornima.V MBA09032
Sreekanth Sasidharan MBA09047