A Review Presentation on VSM@CEAT

Presentation Overview
What is VSM?...motivation Team members Objective setting Stages in VSM @ CEAT Bhandup Current VSM P-P and P-Q Analysis CT to T-T Alignment Future VSM Projects identified Expected Benefits

What is VSM
It is a tool that helps in understanding flow of material and information as a product makes its way To Visualize complete stream in a snapshot Identify resource constraints Helps in removing bottlenecks

Removes redundancy/obsolescence
Imparts robustness to meet customer deliveries on time

What is VSM
Quantifies Lead time

Provides a common language for improvement across all functions

Forms the basis (blueprint) for the implementation plan Lists a tally of non-value added tasks and Value added tasks Produces Roadmap for Lean implementation

Team Members
A Team comprising: Mr. Ram mohan Mr. R.K Das Mr. Nilesh Karekar Mr. Ramakant Verma Mr. Vijay Panzade Mr. Ankur Singh had been entrusted upon the task of value stream mapping Ceat Bhandup Plant and come up with an improvement plan

Objective Setting
Underlying Plant level Objective identified for VSM is:

To ensure 100 % CLIP achievement for 59J Stream

Also undertakes other improvement plans in terms of Productivity Quality Cost Delivery Safety Moral

Stages in VSM@ CEAT

Selection of 59J Product Family

Current State map

Future State map

Project Identification and implementation

Current StateVSM
A final current state or as is map has been arrived at after refining it a number of times. Accounted various department level metrics such as: Actual cycle Time (C/T) Change over time (C/O) Breakdown (B/D) Accidents/man-days lost Scrap Space Efficiencies Manpower deployment Material handling equipments

Product-Process (P-P) Analysis

Aim is to identify a group of products being processed through similar steps Identified 59J Tyre family based on following machine preferences 59 J Herbert (Tyre Building m/c) 46"Inner and 46Outer (Band building m/c) 55 HP and LP (Curing presses)

Product Quantity (P-Q) Analysis

Product Quantity (P-Q) analysis has been done for last 9 months (April-December)-FY09. Actual Production has been considered for analysis. A worst case monthly demand scenario of a SKU is taken to be as : (Average[9-months]+1.5stdev[9-months])
Avg.+1.5Stdev (Total): 218.1k tyres Avg.+1.5Stdev (59-J): 103.9k tyres

Redundant SKUs have also been identified for disposal after logistics consent using last 3 years data.

Cycle Time to Takt Time Alignment

A worst case scenario of Avg.+1.5Stdev (59J family) is considered for capability to produce or CT-TT analysis for each deptt.

Available working time Takt time Customer demand rate

CT/TT ratio All areas wherein (CT-TT) ratio exceeds 0.85 as suggested, improvements projects have been identified.

Future State map

Future state map aims at achieving100% clip of 59J product family by focusing on: Identified projects and initiatives Manpower rationalization Wastage/ scrap elimination Safer operations Streamlining material handling Reducing non value added time thereby decreasing Lead time

First stage identified projects

Cycle Time reduction can be done by some key identified multi-pronged initiatives
P Q C D S M

59J TTB (6)

59J curing 5 and PCI (5) 59J Band 1 building (1) Others (3) 1

Expected Benefits
Achieving 100% clip for 59J stream
Production Capability
120000

Number of tyres/month

100000 80000 60000 40000 20000 0 Current capability Proposed capability Current capability, 79505

Proposed capability, 103980

Expected Benefits
Curing - Cycle Time reduction by 35% for 59J LUG family and 25% for RIB family.
Cycle Time Reduction - curing (59J LUG) sub family
Cycle Times 60 Current CT-TT, 1.29 Reduced CT-TT, 0.85 Current C/T, 56 0.6
20

Cycle Time Reduction - curing (59J RIB) sub family

CT/TT 1.4 1.2 1
40 60 Current CT-TT, 1.13 50 Reduced CT-TT, 0.85
Cycle Times in secs.

Cycle Times

CT/TT 1.2

50
Cycle Times in secs.

40

0.8

0.8
30

30

0.6 Current C/T, 49 0.4 Reduced C/T, 37 0.2

20

Reduced C/T, 37

0.4 0.2 0
10

10

0 Current C/T Reduced C/T

0 Current C/T Reduced C/T

Expected Benefits
Cycle Time reduction by 26% in Tire Building M/C.
Cycle Time Reduction in Tyre Building
600
CYCLE TIMES CT/TT

1.4 CT/TT, 1.15 1.2 1 CT/TT, 0.85 0.8 0.6 Current C/T, 480 Reduced C/T, 354 0.4 0.2 0 Current C/T Reduced C/T

500 400 300 200 100 0

Cycle time in mins.

Expected Benefits
Manpower rationalization After automation in 59J (Dusting) manpower can be trimmed down by 60%
Man Power Reduction
35 30

Man Power/Day

25 20 15 10 5 0 Current Manpower Manpower post Automation Manpower post Automation, 12 Current Manpower , 30

Expected Benefits
Improved safety in operations due to automated band inserter
Man Power Reduction
250 200

Man Power/Day

150 100 50 0

Man Days Lost, 205 Man Days Lost Post Automation, 0

Man Days Lost

Man Days Lost Post Automation

Expected Benefits
Power Consumption reduction by 3.18% Fuel Consumption reduction by 16.2%

Power Consumption

Fuel Consumption

3.695 3.690
Power Rs/Kg

4.400 4.200 Power Rs/Kg, 3.690

Fuel Rs/Kg

3.685 4.000 3.800 3.600 3.400 3.200 3.680 3.675 3.670 3.665 3.660 Power Rs/Kg Power Rs/Kg, 3.670 Power Rs/Kg

Fuel Rs/Kg, 4.330

Fuel Rs/Kg, 3.630

Fuel Rs/Kg

Fuel Rs/Kg

Expected Benefits
Tire Scrap reduction by 31.3% Fabric Scrap reduction by 6.9%

Tyre Scrap
0.250 0.200
% Value YTD
% Value YTD

FabricScrap
0.190 0.185 0.180 0.175 0.170 0.165 Proposed Scrap %, 0.175 Current Scrap %, 0.188

0.150 0.100 0.050 0.000

Current Scrap %, 0.198

Proposed Scrap %, 0.136

Current Scrap %

Proposed Scrap %

Current Scrap %

Proposed Scrap %

Thank You!!!