LUCAS-TVS LIMITED

A JOURNEY TOWARDS MANUFACTURING EXCELLENCE

RAKESH KUMAR 066 RAVI RANA 068 RICHA TOMAR 070

Mission
To be a respected supplier in the global auto industry, by developing innovative products and solutions of value to customers through creative skills and involvement of employees, suppliers and dealers and use of contemporary technology

Introduction
y Lucas TVS was established in 1961 as a joint venture between Lucas, UK,

and T V Sundaram Iyengar & Sons (TVS), India to manufacture Automotive Electrical Systems
y First plant was set up at Padi (Tamil Nadu) in 1961 y Lucas TVS was largest Auto Component Manufacturer in India and operated

in various segments like  Passenger cars  Commercial Vehicle  Tractors  Two Wheelers  Stationery and Marine Applications.
y Lucas Indian Service was engaged 4th largest component distribution

companny in India.

Customers

Other Ownerships and Joint Ventures

y LUCAS INDIAN SERVICES:
Sales and services of auto electrical and fuel injection parts.

y INDIA NIPPON ELECTRICAL Ltd:

Joint Venture of Lucas India Services and Kokusan Denki Co. Ltd.

y INDIA JAPAN LIGHTING Ltd:

50:50 JV of Lucas TVS and Koto Manufacturing Company Ltd.

LucasLucas-TVS before 1985. 1985

y Plant Layout y y y y y y

Process based Criss-cross Material Movement. Lots Work In Progress on shop floor. Roughly 30% of the processes were not capable of meeting product specifications. Frequent breakdown of machineries. Less focus on timely delivery (delivery reliability), product quality (quality consistency) High Scrap levels (3%)

Need for change

 Entry of MUL in 1983 increased market

competition.  Entry of world class manufacturers like Bosch & Nippondenso triggered a need to change.  To remain competitive on price, quality and response time was a challenge.  It became a business requirement to look beyond India and compete globally.

SWOT ANALYSIS
STRENGTH
Brand One

Pre cellular layout

WEAKNESS
 

name

High Scrap levels 3 % Low Inventory Turns. Inconsistency

of the Indias largest Independent suppliers Largest Distributor. with international Companies

Quality Little

Collaboration Strong

emphasis on timely delivery & schedule adherence. were unable to deliver as per company requirements.
Suppliers

Relationship between management & work force Indigenous Design.

OPPORTUNITY
Entry Emerging

THREAT
of Technologically Advanced competitors like Bosch, Denso. High competition on price, quality and response time.
 

Indian Automobile market- MULs entry was a notable

Significant

export opportunities

Weak Supplier Relationship

Actions taken by Management

y Introduction of Systems Approach towards Manufacturing y Three member Task force formation. y Process Layout Product Layout y Focus on maximizing potential of current resources- Low priority to investments in new technologies y Providing effective training to the workforce. y Encouraging employee suggestions through formation of Small Group Activities(Continuous Improvement).

Outcomes
 In six years, net worth and sales/employee of the

  

company doubled with almost negligible change in the work-force size. Product Layout eliminated criss-crossing of material across the factory Smoother product flow Reduction in floor space requirement Improved inventory turns. Creation productive and Flexible workforce.

SWOT ANALYSIS
STRENGTH
Streamlined

Post cellular layout

WEAKNESS
Suppliers

product flow with no criss-cross movement of materials

Improved

not meeting company quality requirements

Insufficient

productivity through Nagare cell layout and single piece flow adaptable and multi-skilled workers

training to employees.

Highly

Increased

number of Kaizens through formation of Small Group Activities 9000 & ISO 9001 Certification acquired

QS

OPPORTUNITY


THREAT

Greater product range opportunities for NPD.

Competition post Liberalization policy. on Quality, Cost and Delivery time

Economic

Liberalization opened window to capture higher market share.



Competition

Tap the exports markets.

Competing with the Technological capabilities of International auto component manufacturer Denso, Bosch etc

Achievements Post cellular Layout

NAGARE CELL
(Simultaneity of two actions)

   

Aims to facilitate single piece flow in a mixed model production environment Greater flexibility- Number of workers can be altered based on demand Encourages multi-tasking U shape provides the operators easy access to all machines in the cell

JOURNEY

Recommendations
Quality
Focus on getting it right the fist time. Kaizen suggestions to be encouraged to reduce number of rejections (PPM). Investments in technology & machinery. Standardization of products. New product development & innovation. Scales of economy. Vendor development & training. Treating vendors as partners Developing a network of suppliers

Costs

Supplier alignment Training & development Information technology.

Skill enhancements of the employees. Competent workforce building. Developing an environment conducive for continuous learning. Developing a Management information system. Implementing ERP for better control over the operations. Use of IT to keep track of the competitor as well as customers

THANK YOU!!!