1 A STUDY ON SOURCING QUALITY MATURITY INDEX (SQMI) IMPROVEMENT FOR SUPPLIERS OF ASHOK LEYLAND, CHENNAI By SENTHIL KUMAR VIGNESH

. R (Reg. No.: 96010631049) of MEPCO SCHLENK ENGINEERING COLLEGE, SIVAKASI 626 005 A PROJECT REPORT Submitted to the FACULTY OF MANAGEMENT STUDIES In partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION JUNE 2011 JULY 2011 2 Mepco Schlenk Engineering College Department of Management Studies MBA Summer Project JUNE 2011 JULY 2011 Bonafide Certificate Certified that this project report titled A STUDY ON SOURCING QUALITY MATURITY INDEX (SQMI) IMPROVEMENT FOR SUPPLIERS OF ASHOK LEYLAND, CHENNAI is the bonafide work of Senthil Kumar Vignesh R who carried out the research under my supervision. Certified further, that to the best of my knowled ge the work reported herein does not form part of any other project report or dissertation o n the basis of which a degree or award was conferred on an earlier occasion on this or any othe r candidate. Mr.S.R.John Jebaraj, MBA, MCA Date: Asst.Prof, Department of Management Studies MEPCO SCHLENK Engineering College, Sivakasi Forwarded 3 Senthil Kumar Vignesh . R I MBA Mepco Schlenk Engineering College Reg. No. : 96010631049 DECLARATION I here by declare that the project titled A STUDY ON SOURCING QUALITY MATURITY INDEX (SQMI) IMPROVEMENT FOR SUPPLIERS OF ASHOK LEYLAND, CHENNAI submitted for the award of Master of Business Administration in Anna University has been carried out under the guidance of Mr.S.R.John Jebaraj, Asst Professor, Department of Management Studies, Mepco Schlenk Engineering Coll ege and it is my original work which does not form part of the award of any other Degree or Diploma. Senthil Kumar Vignesh . R 4 ACKNOWLEDGEMENT First of all I thank LORD MURUGAN for His abundant grace and countless blessings in making this work a great success. I express my heartfelt thanks to our respected principal Dr. S. Balakrishnan, B. E., M.S., MIEEE.,Ph.D for providing ample facilities made available during the cours

e of this project. I wish to express my thanks and sincere gratitude to our Director Dr.S.Tamilselvan,M.B.A.,Ph.D for his valuable advice and guidance to complete th is work successfully and also for his enthusiastic encouragement. I express sincere thanks to my organizational guide Mr.K.Badri Narayanan, deputy Manager Strategic Sourcing, Ashok Leyland, Chennai who dedicated his prec ious time with the motive to make my project and help me by providing the organizatio nal information and make project a successful one. I am most grateful to my internal guide Mr.S.R.John Jebaraj, M.B.A., M.C.A who guided me and encouraged me by giving constructive criticisms during the entire work. His vision and wisdom helped me to realize the importance of this work. Finally, I would not have made this without the support from my beloved parents and friends. They encouraged me when I felt frustrated, and took pride and pleas ure in what I achieved. They deserve my sincerest gratitude. Senthil Kumar Vignesh.R 5 TABLE OF CONTENTS 1.1 INTRODUCTION ............................................................... .............................................1 1.1.1 INCOMING INSPECTION REJECTION: ........................................... ...........................1 1.1.2 LINE REJECTION: .......................................................... ..............................................1 1.1.3 SEGREGATION REJECTION: ................................................... ...................................2 1.1.4 REWORK:................................................................... ...................................................2 1.1.5 RELIABILITY REJECTION: ................................................... ......................................2 1.1.6 QUANTITY ACCEPTED UNDER DEVIATION: ....................................... ..................2 1.2 SQMI (SOURCING QUALITY MATURITYINDEX)........................................ .2 1.3 COMPANY PROFILE ............................................................ .........................................5 1.3.1 DESIGN PHILOSOPHY: ....................................................... ........................................5 1.3.2GLOBAL AMBITIONS OF THE COMPANY ........................................... .....................5 1.3.3VISION & MISSION: ......................................................... ............................................5 1.3.3.1VISION: ................................................................. ................................................. 12 1.3.3.2 MISSION: ............................................................... .................................................5 1.3.4 QUALITY POLICY: .......................................................... ............................................6 1.3.5 FIVE VALUES OF ASHOK LEYLAND: ............................................ ..........................6 1.3.6 STRATEGIC SOURCING: ...................................................... ......................................6 1.3.7 STEPS IN STRATEGIC PROCESS: .............................................. ................................7 1.4 PROBLEM STATEMENT: .........................................................

..........................................7 1.5 LITERATURE REVIEW: ......................................................... ............................................8 1.5.1 ANIXTERS QUALITY CONTROL 1: ............................................... ............................8 1.5.2 SURFACE TENSION TRANSFER ON SHEET METAL 2: ............................... ............8 1.5.3 AUTOMOTIVE PART MANUFACTUER MANAGEMENT SERVICES 3: .................9 1.6 OBJECTIVES: ................................................................ .................................................9 6 1.7 ANALYSIS TOOL: 8D ANALYSIS ................................................. ............................. 10 CHAPTER -2 ..................................................................... ....................................................... 11 2.1 COMPANY VISITS: ............................................................ .......................................... 11 2.1.1 SUPPLIER X: .............................................................. ................................................. 12 2.1.1.1 CLIENTS: ............................................................... ............................................... 13 2.1.1.2 PROCESS FLOW: .......................................................... ....................................... 14 2.1.1.3 REASONS FOR THE REJECTION FOR THE PART NUMBER F7509014 AND RECOMMENDED IMPROVEMENTS: ...................................................... ...................... 15 2.1.1.4 RESULTS ................................................................ .............................................. 18 2.1.2 SUPPLIER Y ............................................................... ................................................. 19 2.1.2.1 PROCESS FLOW: .......................................................... ....................................... 20 2.1.2.2 RESULTS: ............................................................... .............................................. 21 2.1.3 SUPPLIER Z ............................................................... ................................................. 22 2.1.3.1 CLIENTS: ............................................................... ............................................... 24 2.1.3.2 PROCESS FLOW: .......................................................... ....................................... 25 2.1.3.3 REASONS FOR THE REJECTION FOR THE PART NUMBER F1140513 AND RECOMMENDED QUALITY IMPROVEMENT: ............................................... ............. 26 2.1.3.4 REASONS FOR THE REJECTION FOR THE PART NUMBER F1103713 AND RECOMMENDED QUALITY IMPROVEMENT: ............................................... ............. 27 2.1.3.5 RESULTS: ............................................................... .............................................. 30 CHAPTER - 3 .................................................................... ....................................................... 31 3.1 FINDINGS: .................................................................. ....................................................... 31 3.1.1 SUPPLIER X: .............................................................. ................................................. 31 3.1.2 SUPPLIER Z: .............................................................. ................................................. 31 3.2 SUGGESTIONS: ............................................................... ................................................ 32 3.2.1 SUPPLIER X: .............................................................. ................................................. 32

7 3.2.2 SUPPLIER Z: .............................................................. ................................................. 32 3.3 CONCLUSION: ................................................................ .................................................. 33 3.4 BIBLIOGRAPHY: .............................................................. ................................................ 34 LIST OF FIGURES Figure 1.2.1 SS domain classification and suppliers ............................ ...................................4 Figure 2.1.1.1.1 Share of business (by volume of production) ................... ................................ 13 Figure 2.1.1.2.1 Process flow .................................................. .................................................. 14 Figure 2.1.1.3.1 Job with defect (weld nut offset) ............................. ......................................... 16 Figure 2.1.1.3.2 Changed welding fixture ....................................... ........................................... 17 Figure 2.1.1.3.3 Weld nut placed in the job and ready to be welded ............. .............................. 17 Figure 2.1.1.3.4 Defect free job with the POKA YOKE fixture screwed in ......... ....................... 18 Figure 2.1.2.1.1 PROCESS FLOW................................................... ......................................... 20 Figure 2.1.3.1.1 Share of business (by volume of production) ................... ................................ 24 Figure 2.1.3.2.1 Process flow .................................................. .................................................. 25 Figure 2.1.3.3.1 Presently used packing method ................................. ....................................... 26 Figure 2.1.3.4.1 Part with sharp edge........................................... .............................................. 28 Figure 2.1.3.4.2 Oil flinger with no sharp edge ................................ .......................................... 29 LIST OF TABLES Table 1.2.1 Classification of the component based on the risk score ............ .........................3 Table 1.2.2 Classification of suppliers based on the PPM value ................. ...........................3 Table 1.2.3 Combination Matrix ................................................. ..........................................3 Table 2.1.1.1 Categories of items supplied ..................................... ....................................... 12 Table 2.1.1.2.1 Category and part numbers ...................................... ......................................... 15 Table 2.1.1.4.1 SQMI index ..................................................... ................................................ 18 Table 2.1.3.1 Categories of items supplied ..................................... ....................................... 22 Table 2.3.1.2 Part numbers and categories ...................................... ....................................... 23 Table 2.1.3.5.1 SQMI index ..................................................... ................................................ 30 8 CHAPTER -1 1.1 INTRODUCTION Nearly 85% of the items that are used for the production of commercial vehicles are sourced by Ashok Leyland from its suppliers and it ensures customer satisfaction at all stages. To

make a customer satisfied the overall quality is to be ensured at all stages, fr om the procurement of parts from its suppliers to the vehicles being delivered to its customers. So quality checks are performed by Ashok Leyland to pick out the components that are inaccurate and do es not confirm to quality standards. There are rejections of parts that do not match th e minimum standards (match to the drawing, includes dimensions and appearance). The six ty pes of rejections are as follows, 1) Incoming inspection rejection 2) Line rejection 3) Segregation rejection 4) Quantity accepted & deviation 5) Reliability rejection 6) Rework 1.1.1 INCOMING INSPECTION REJECTION: This type of rejection occurs at the very beginning when the customer receives t he parts. When a part is received, it is checked for its accuracy, (i.e) whether it is as per the diagram or not (includes checking in dimensions and appearance). The parts that do not meet the specification are rejected and it comes under this type of incoming inspection rejection. 1.1.2 LINE REJECTION: After the items are accepted after sample inspection, they are sent to the line for the production purpose. At line some parts may be rejected if they dont match to the requirements. This type of rejection is called as line rejection. 1.1.3 SEGREGATION REJECTION: The lot which is cleared based on sampling inspection, if found rejected in line will be subjected to segregation as OK and NOT OK items. 9 Example: If there are totally 100 parts supplied, it is not totally sent to the line as a whole, they are sent in batches of required quantity. If the batch size is of 20 and there is some rejection in the second batch, the remaining 60 are to be inspected and segregat ed. The rejected items are sent back to the supplier. 1.1.4 REWORK: The parts that are rejected as NOT OK items are then segregated into reworkable an d non-reworkable. The reworkable items are reworked by Ashok Leyland and the non-r eworkable items are sent back to the supplier. 1.1.5 RELIABILITY REJECTION: This rejection occurs when the parts that are already used in a vehicle and are obtained back from the end user during the warranty period. The rejected parts are sent b ack to the supplier. This type of rejection is called as reliability rejection. 1.1.6 QUANTITY ACCEPTED UNDER DEVIATION: The item not meeting the specification but can be considered for production is k nown as the quantity accepted under deviation. Concessional quantity is accepted for the calculation of

the PPM. (50% is taken) eg: if 100 items are supplied and accepted under concess ional acceptance, it would be considered that only 50 items were accepted. 1.2 SQMI (SOURCING QUALITY MATURITY INDEX) There are almost 1200 family parts in a vehicle and every part goes through qual ity inspections and every parts risk score is calculated by five different dimensions and every dimension is given a weightage and based on the damage that the particular part can cause to the life of human or to the vehicle, the scale value is fixed and its risk score is calculated. The procedure for calculating is based on the predefined methodology of having compo nent criticality and supplier capability, the SQMI metric is evolved. The component risk score is measured by assigning weightage to the part based on the severity it can cause to the life of the human or to the vehicle, considering va rious characteristics. The risk score may vary between 100 and 900. 10 RISK SCORE CRITICALITY INDICATION COLOUR SYMBOL 501 900 HIGH RISK RED R 301 - 500 MEDIUM RISK YELLOW Y 100 300 LOW RISK GREEN G Table 1.2.1 Classification of the component based on the risk score By the same way the supplier capability can also be calculated based on their PP M value. Table 1.2.2 Classification of suppliers based on the PPM value PPM VALUE SUPPLIER CAPABILITY INDICATION COLOUR SYMBOL 0 100 HIGH CAPABLE SUPPLIER GREEN G 101 10,000 MEDIUM CAPABLE SUPPLIER YELLOW Y >10,000 LOW CAPABLE SUPPLIER RED R The number of items that fall under the RR category needs immediate attention and improvement. Every part supplied by the supplier, falls under any one of these categories. The next step is to calculate the SQMI (Sourcing Quality Maturity Index), this S QMI value is fixed by Ashok Leyland every year, for its suppliers,(for the current f inancial year of 2011-12 it is 93%) . Always SQMI is calculated by using rolling six months data. (i.e) to COMPONENT CRITICALITY G Y R R GR YR RR SUPPLIER CAPABILITY Y GY YY RY

G GG YG RG Table 1.2.3 combination matrix 11 calculate for the month of May 2011, details of total number of items supplied a nd rejected from December 2010 to May 2011 is required. A standard matrix is used for the calcula tion. (note: the calculation of components risk score, supplier capability, standard ma trix and SQMI calculation are not given to maintain the confidentiality) The supplier capability to increase from low to medium it doubles the capability and to be a high capable supplier it requires seven times improvement, from the low lev el (that can be understood from the standard matrix used for calculating SQMI) The main aim of this project is to help the suppliers meet the SQMI score of 93, whos actual is very low, by suggesting quality improvement measures such that the num ber of rejections get reduced and help them also to achieve 0PPM. Figure 1.2.1 SS domain classification and suppliers 1.3 COMPANY PROFILE: In 1948, then called Madras, Ashok Motors was setup for the assembly of Austin c ars, the company name then changed with equity participation from British Leyland and Ashok Leyland commenced its manufacture of commercial vehicles in 1955.Access to inter national technology, has set the tradition to be first in full air brakes, power steering for commercial vehicles and rear engine buses. Ashok Leyland is the technology leader in Indias commercial vehicle industry over five decades. It includes 1) 18 seater to 82 seater double ducker buses BAR M/C 7% CASTING 13% CHAS PROP 14% ELEC PROP 9% ENGG PROP FASTENERS 17% 5% FORGING 7% NON METALLIC 13% SHEET METAL 14% STEEL 1% 12 2) 1.75Tonnes, 7.5Tonnes to 49Tonnes in haulage vehicles 3) Diesel engines for industrial, marine and generator set applications Ashok Leyland has built a reputation for its reliability and ruggedness. 4 out o f 5 State

Transport Undertaking (STU) buses come from Ashok Leyland. It also provides uniq ue models like Double-Decker and Vestibule buses. 1.3.1 DESIGN PHILOSOPHY: Designing durable products that makes economic sense to the consumer, using appropriate technology It moulds consumer attitudes and brand personality. 1.3.2GLOBAL AMBITIONS OF THE COMPANY: Global Standards, Global Markets Ashok Leyland was the first to win ISO: 9002 certification in Indias Automobile Industry in 1993. It also ISO: 9001 in 1994, QS: 9000 in 1998, ISO 14001 in the year 2002, for all the vehicle manufacturing units. It is also the first to receive the ISO/TS 16949 corporate certification in July06 which is specific to the Auto Industry. 1.3.3VISION & MISSION: 1.3.3.1VISION: Achieving leadership in the medium / heavy duty segments of the domestic commerc ial vehicles markets and a significant presence in the world market through transpor t solutions that best anticipate customer needs, with the highest value-to-cost ratio. 1.3.3.2 MISSION: Identifying with the customers Being the lowest cost manufacturer Global bench marking of our products, process and people against the best in ind ustry 1.3.4 QUALITY POLICY: Ashok Leyland is committed to achieve customer satisfaction, by anticipating and delivering superior value to the customers in relation to their own business, th rough the product and services offered by the company and comply with statutory requirements. The quality policy of AL is to make continual improvements in the process that c onstitute the quality management system, to make them more robust and to enhance their effecti veness and efficiency in achieving stated objectives, leading to 13 Superior products manufactured as also services offered by the company. Maximum use of employee potential to contribute to quality and environment, by progressive up gradation of their knowledge and skills as appropriate to their f unctions. Seamless involvement from suppliers and dealers in the mission of the company to address customers changing needs and protection of the environment. 1.3.5 FIVE VALUES OF ASHOK LEYLAND: 1) International 2) Speedy 3) Value creator 4) Innovative 5) Ethical 1.3.6 STRATEGIC SOURCING: It is an institutional procurement process that continuously improves and re-eva luates the purchasing activates of a company. In production environment, it is often considered as one component of SCM (suppl y chain management) 1.3.7 STEPS IN STRATEGIC PROCESS: 1) Assessment of a companys current spends (what is bought where?) 2) Assessment of the supplier market (who offers what?) 3) Total cost analysis 4) Identification of suitable suppliers

5) Development of sourcing strategy 6) Negotiation with suppliers 7) Implementation of new supplier structure 8) Track results and restart assessment 14 1.4 PROBLEM STATEMENT: The imperfect parts are rejected by the quality check in Ashok Leyland and so th e suppliers of Ashok Leyland are unable to reach the set SQMI level of 93 percenta ge (by Ashok Leyland for the current financial year 2011-12), and thus leading into increase in their PPM value. Every part is TS specified that is uniquely developed by Ashok Leyland es pecially for its commercial vehicles, to its suppliers. There is some mistake happening in the pr ocess taking place before the parts reaches its customer. 15 1.5 LITERATURE REVIEW: 1.5.1 ANIXTERS QUALITY CONTROL 1: This company had given life to an automobile manufacturer that was at the stage of being shut down due to lack of materials and the company has also saved more tha n $1billion in one year. Being a automobile mirror manufacturer company, it supplies 30 to 40 d ifferent screw types with over 500 part numbers and 100 million screws a year. Anixter needed t o ensure that all the components making their way to manufacturers place met all the quality re quirements. All the quality issues needed to be identified and addressed before it is implem ented. By specializing in all the issues like inventory management and sourcing, Anixter w as able to meet the quality and supply chain needs of the manufacturer. Its inspection included random checking of all the parts regardless of its location. Checking for the missing threads an d other defects during the sorting process, Product goes from the dock to automatic feeder line and that saved customer money and time eliminating physical quality checks. For the past one ye ar the company had maintained 0 PPM. The company is even now improving its process and lowering its costs. The inspection team prides itself on the testing and inspection facil ities investments. 1.5.2 SURFACE TENSION TRANSFER ON SHEET METAL 2: DeWys Manufacturing Inc, a Michigan based custom precision sheet metal manufacturing company was facing a problem of in search of robotic welding solut ions to help curb spatter-related downtime, and also to find a perfect fit. The problem was e xcessive spatter resulting in expensive per-part clean-up time on a job requiring multiple welds on thin gauge material. The other problem was the spatter-related contamination of the part. T he workers were spending about a minute per part cleanup and those minutes added up to 25 hours weekly. The Lincoin system 40 was adopted and dropped in place and it was very easy to be in stalled. This

had a small forklift and a compatibility to hold three gauges and a 180 degree i ndexing table that helps to load and unload while the next reservoir is being welded. It was twice as fast as other robots and once it was put in place it was ready to work. 16 With regards to safety the cell had a number of safety features including steel barriers to protect against flash and unauthorized entry. flash door that separates the oper ator from the welding area, safety door interlocks, and an easily accessible operator palm but ton for quick cycling. Later it has given a chance for the company to convert the other existi ng robots to Lincoins and it would play a key role in the process. 1.5.3 AUTOMOTIVE PART MANUFACTUER MANAGEMENT SERVICES 3: A major OEM manufacturer was facing problems with their current washing process that used 19 four-stage aqueous washes in operation removing several different formin g oils. One washing chemical with varying concentrations was used. The team QMS (Quakers Mana gement Team) used cause and effect analysis to design experiments and evaluate the chem ical changes. The team constructed controlled evaluation tests that could reduce the downstrea m risks to the plant. The wash bath dump cycle were changed to once per week to once per six we eks, thereby lowering discharge to the waste treatment plant by 85%. Maintenance costs were r educed by 33% per wash. The improved splitting of oil from the wash resulted in a 98% pure oil stream that is now being recycled. This also resulted in a generation of 30 40% reduction in per part total cleaning costs. 1.6 OBJECTIVES: 1) To improve the SQMI percentage of suppliers to 93%, from their current level, initially reduce their parts PPM having a very high value.. 2) To focus on the suppliers (sheet metal SS domain) with SQMI less than 93% and their parts having high PPM 3) Analyse the manufacturing process and find out where the mistake would have o ccurred 4) Suggest quality improvement measures to the suppliers to reduce the number of rejections 5) Implement the suggested measures and monitor them at the supplier end for its success. 17 1.7 ANALYSIS TOOL: 8D ANALYSIS The eight dimensional analysis 5 is used for analyzing the problem, providing a temporary solution and also a permanent solution. This is used to analyse a prob lem from all the eight dimensions. It includes 1D) Forming a team : whenever a problem is found a team has to be formed to solv e it. 2D) Describe the problem : when the problem is found and after the team has been formed, the problem is to be explained to the team and it is to be ensured that the problem is understood by the team.

3D) Implement & verify : the solution is to be provided for temporarily recoveri ng from the Interim action problem 4D) finding root cause : as the problem is once solved temporarily, next the rea son why that problem did occur has to be found and was it the only cause for the occurrence for the problem has to be verified. 5D) Permanent action 4 : as the root cause is found out the permanent solution h as to be suggested such that the same problem is not reported again 6D) implement and verify : As the permanent actions are devised they are to be i mplemented and verified, whether it is the correct permanent corrective action. 7D) prevent system problem 6: documentation, things like process flow, PFMEA and operator instructions are to be updated 8D) congratulate the team : as the permanent corrective solution is suggested an d it is Successful, the whole team is to be appreciated. 18 CHAPTER -2 2.1 COMPANY VISITS: From the given list of suppliers, the part numbers and their respective PPM were analyzed and the suppliers were visited. And also visit was made to one supplier who has the SQMI of 100% to know what makes the difference between these suppliers. The comp anies considered for improvement of quality are 1) Supplier - X 2) Supplier - Y 3) Supplier - Z (Note: Supplier names are kept hidden to maintain confidentialit y) 2.1.1 SUPPLIER X: This was the first supplier, visited on 20/06/2011. The company is automobile pa rt Supplier Company that was established in the year 1980. The company created faci lity for manufacturing of sheet metal pressed components and sub-assemblies for use in Au tomotive, Electrical, and Material Handling and Construction fields, to major OEMs. The co mpany employs 100 workers among which 70 are permanent and the remaining are temporary . The operation at SUPPLIER X is under the control of Managing Director, supported by a team of qualified professionals who have several years of Industrial, Techn ical & Administrative experience. The management representative and Quality head of the company, over sees the companys production and their aim is to achieve 100PPM (presently 2 97PPM, inhouse for the month of June). The company procures its raw materials from TATA steel as metal sheets from varying thickness of 1.5mm to 6mm and then those sheets are sh eared to required sizes and further activities like cutting, drilling are done. Some of t he activities like power coating, painting, welding are outsourced and obtained, then supplied to t he customers. The company totally supplies 56(fifty six part numbers). COMPON ENT CRITI CALITY G Y R

R 3 0 0 SUPPLIER CAPABILITY Y 6 0 0 G 47 0 1 19 Table 2.1.1.1 category of items supplied The company also possesses quality certifications like ISO9001 certification app roved by IRQS (Indian Register Quality Systems). And also has fixed a target to achiev e TS/ISO16949:2009 in the current financial year (insisted by Ashok Leyland for it s suppliers) IRQS is a body that provides Independent quality certifications and Environmenta l Management Systems Certifications. The company has also aimed of achieving EHS certificatio ns (Environment and Health Safety) 2.1.1.1 CLIENTS: The company produces many parts for various automobile manufacturers and majorit y of its production is for Ashok Leyland (69%), and suppliers include 1) Rane 2) Lucas TVS., Figure 2.1.1.1.1 share of business (by volume of production) ASHOK LEYLAND 69% OTHERS 31% SHARE OF BUSINESS 20 The company also has a turnover of 150 lakhs/ month 2.1.1.2 PROCESS FLOW: Raw Materials (reception) Storage of Raw Materials Quality Inspection Shearing (cutting) Pressing Online Inspection Sub Contract (plating & coating) Final Inspection Dispatch Figure 2.1.1.2.1 process flow 21 The part numbers that fall under GR and GY needs to be improved. The part numbers that fall under these categories are PART NUMBER CATEGORY PPM F7509014 GR 75572 F7215414 GR 51278 B5580817 GR 12256 B5412253 GY 11321 B5495807 GY 9743 B5495808 GY 3814 B5545131 GY 2865 F8310510 GY 976 X0497610 GY 487 Table 2.1.1.2.1 category and part numbers The part number F7509014 describing BRKT_CAB LIGHT was chosen for improvement since it had the highest PPM among the list of items supplied. 2.1.1.3 REASONS FOR THE REJECTION FOR THE PART NUMBER F7509014 AND RECOMMENDED IMPROVEMENTS: The part describes BRKT_CAB_LIGHT and the reason stated for rejection was

WELD NUT OFFSET FITTMENT ISSUE. Totally 512 part numbers were rejected in line rejection and the particular part had a PPM of 75572. The defect was due to dime nsional inaccuracy that occurred during the process of welding the nut in the pierced ho le.. When the process was studied it was known that the defect occurred due to absence of the pin of the right size. (i.e) the weld nut dia was of 5.1mm and pin was only of width 3mm in the w elding fixture. 22 After the discussion with the Quality Head it was recommended to provide the pin of 5 mm to hold the nut firmly in the fixture when it is being welded, so that the offset c an be avoided and also to provide a butting to hold the job firmly. Also the final inspection has been changed to 100%, instead of sampling inspection. The recommendations were implemented and t he defect has been overcome. Hence the quality of this particular part has been improved a nd there were no rejections. NUT OFFSET DEFECT AREA Figure 2.1.1.3.1 Job with defect (weld nut offset) 23 Figure 2.1.1.3.2 Changed welding fixture Figure 2.1.1.3.3 Weld nut placed in the job and ready to be welded Butting provided to hold the job firmly Changed stopper pin(to hold the weld nut) Pin size= 5mm 1 1 Figure 2.1.1.3.4 Defect free job with the POKA YOKE fixture screwed in 2.1.1.4 RESULTS Table 2.1.1.4.1 SQMI index The items improved were sent to the plant for production purpose and there were no rejection, thus the improvement was successful.(evident with the improvement in SQMI score) MONTH SQMI APRIL 87.55 MAY 88 JUNE 90.18 JULY 92.32 2 2 2.1.2 SUPPLIER Y This was the second supplier visited on 22/06/2011. This supplier was visited to study the manufacturing process. The operation at SUPPLIER Y is under the contro l of, The Managing Director, supported by a team of qualified professionals who have s everal years of Industrial, Technical & Administrative experience. The management representative and Quality head of the company, over sees the companys production and quality related issues. The company produces sheet metal stampings and pipe item s. The

process like welding, drilling are not outsourced. The company procures its raw material (metal sheets) varying from a thickness of 1mm to 10mm from TATA steel. All the dimensions are measured in prior and fixtures are made so any defect due to dime nsional inaccuracy does not occur. They ensure safe transport and proper packing methods , such that there is no damage even during the transportation.(from supplier to custome r). The company produces various parts like control shafts, braces etc., The company als o works on pipe items. The pipes of length from 400mm to 3metre are supplied from Ashok Leyland as a raw material and the drilling, knurling operation are done at the f actory and then final product is sent back to the customer. 3 3 2.1.2.1 PROCESS FLOW: Raw Materials (reception) Storage of Raw Materials Quality Inspection Shearing (cutting) Pressing Drilling & Welding Sub Contract (painting & coating) Final Inspection (painting and, dimensions inspected) Dispatch Figure 2.1.2.1.1 PROCESS FLOW 2.1.2.2 RESULTS: When the manufacturing process was studied, the reason that the company was able to maintain the SQMI score of 100 was due to the following reasons. 1) 100% final inspection was carried out for all its products, no sampling inspection was done for any product. 2) Every part moves away from the factory only after it is inspected by the qual ity inspector. 3) the company strictly sticks on to the technical specifications given by its customer (Ashok Leyland) . 4) Safe transport and proper packing is ensured before it is transported to the customer. 4 4 2.1.3 SUPPLIER Z This was the third supplier visited on 24/06/2011. This supplier is a 29 years o ld precision shop, which specializes in the manufacture of 1) Sheet metal and fabricated components 2) Sheet metal assemblies involving welding, riveting etc., 3) Design and development of press tolls and fixture The operations at SUPPLIER Z are under the control of the Managing Director, supported by a team of qualified professionals who have several years of Industr ial, Technical & Administrative experience. The Quality head of the company over sees the companys production and their aim is to achieve 0PPM (presently 17224 PPM, inhous e for the month of June). The company procures its raw materials from TATA steel a s metal sheets from varying thickness of 1mm to 10mm and then those sheets are sheared t o

required sizes and further activities are done. Some of the activities like powd er coating, painting are outsourced and, then supplied to their customers. The company total ly supplies 61(sixty one part numbers) The defects were due to tool wear out and transportat ion damage due to inappropriate packing. COMPONENT CRITICALITY G Y R R 4 0 0 SUPPLIER CAPABILITY Y 7 0 0 G 45 4 1 Table 2.1.3.1 category of items supplied The company supplies part numbers that fall under GR and GY and it needs to be improved. The company also posses quality certifications like ISO9001, ISO/TS 16949:2009 certification and the company has also been the winner of GOLD AWARD for the yea r 2003-04 for their improvements in quality and developments, given by Ashok Leyla nd for their improvement in quality during the same. 5 5 PART NUMBER CATEGORY PPM F7205410 GR 62345 F7H00114 GR 51897 F8209714 GR 42825 F1140513 GR 38362 FA905711 GY 22693 B8750902 GY 11743 F1103713 GY 8486 F1135513 GY 8002 F1136813 GY 6382 F1141913 GY 432 F2800140 GY 379 Table 2.3.1.2 part numbers and categories The encircled part numbers were considered for improvement, since they were in production during the course of my project, though it is not the part with the h ighest PPM value. 6 6 2.1.3.1 CLIENTS: Various clients include 1) M/S Ashok Leyland (major) And other clients include 1) Eicher (Royal Enfield) 2) WABCO Figure 2.1.3.1.1 share of business (by volume of production) The company has a turnover of 1400 lakhs/month 2.1.3.2 PROCESS FLOW: Raw Materials (reception) ASHOK LEYLAND 60% OTHERS 40% SHARE OF BUSINESS 7 7 Storage of Raw Materials

Quality Inspection Shearing (cutting) Pressing Welding and Riveting Sub Contract (painting & coating) Final Inspection (plating thickness measurement, dimensions inspected) Dispatch Figure 2.1.3.2.1 process flow 2.1.3.3 REASONS FOR THE REJECTION FOR THE PART NUMBER F1140513 AND RECOMMENDED QUALITY IMPROVEMENT: This part describes the OIL FILTER BOWL and the problem reported was the GRUDGE OFFSET FITMENT ISSUE. The manufacturing process was studied and analyzed, the problem was not occurring in the manufacturing process. Totally 13 9 (one hundred and thirty nine) part numbers were rejected during line inspection rejec tion at Plant-1, Hosur. The problem occurred when it was transported from the plant to t he customer. Presently it is being packed in cotton boxes and transported. It could occupy 12 part numbers as show in the below picture. 8 8 Figure 2.1.3.3.1 presently used packing method When the packing process was analyzed and studied, it was found that, the defect could have occurred due to lose packing, and all the items (all 12 numbers) are not arranged properly inside the cotton box. The grudge/ring is only 0.8mm in thickn ess and also as it is a weightless item it gets out of shape when being transported, tho ugh it is arranged due to collision with the other items, placed nearby inside the box. Af ter a discussion with the quality head of the company, it was recommended to have a pa rtition bin to hold the bowl firmly, so that they dont get in touch with each other. Vari ous dimensions were measured to have a partition bin such as the weight of the compo nent, weight of the tray and average weight that a normal human can carry with ease (u p to 30 KGs). Partition Bin should be made in way such that it occupies 15 items so that it totally weighs about 18 KGs (inclusive of the weight of the job and the tray) and would be easy to carry. 9 9 940 grams Weight of a job Weight of 15 jobs 940 * 15 = 14,100 grams Weight of the tray 3,500 grams Weight in total 17,600 grams ~ 18 KGS This recommendation was taken to management and was agreed to implement after the discussion and price amendments with the customer. It was also considered as the economical way to transport them in partition bins. Also, the cotton boxes, that can be reused once or twice hardly, are not environment friendly, where as the use of p artition bins can be reused for a long time and can comply with the EMS (Environment

Management System) standards. 2.1.3.4 REASONS FOR THE REJECTION FOR THE PART NUMBER F1103713 AND RECOMMENDED QUALITY IMPROVEMENT: This part number describes the OIL FLINGER and 200 (two hundred) part numbers were considered under quantity accepted under deviation type rejection at Ennore plant. The problem reported was SHARP EDGE NOTICED. The manufacturing process was studied and analyzed. It was found that the sharp edge occurred since the cutting tool has worn out and the process was also carried out, unnoti ced. The tool history was not followed and the supervisor did not instruct the operator to che ck the cutting and piercing tool. As the tool wore out, the cutting edge resulted in a burr and grinding was done in order to remove the burr and that resulted in a sharp edge. 10 10 Figure 2.3.1.4.1 Part with sharp edge After the study process and discussion with the Quality Head of the company it w as recommended to follow the tool history. There were also some items that were alr eady produced and waiting for dispatch, sharp edge was also noticed in those items, s o it was instructed to the operators to grind the sharp edges with SAND PAPER EMERY and t hen supply them to the customer. The cutting and punch tool has been changed and the tool history is now followed and the problem has not occurred 11 11 Figure 2.1.3.4.2 Oil flinger with no sharp edge Thus the recommended changes were implemented and the SHARP EDGE problem was solved and the quality of this item was improved. 12 12 2.1.3.5 RESULTS: MONTH SQMI APRIL 89.21 MAY 83.31 JUNE 85.64 JULY 90.23 Table 2.1.3.5.1 SQMI index The reason for the decrease in SQMI score in the month of May was due to additio n of new parts to its production list and the rejection in those items. The improved parts were then sent to the plant for the production and it was fou nd that there were no rejections in the parts supplied after the improvement. Hence , the improvements were successful. 13 13 CHAPTER - 3 3.1 FINDINGS 3.1.1 SUPPLIER X: 1. The stopper pin to hold the weld nut was not of proper size (it was 3mm inste ad of 5mm)

2. No butting support to hold the job firmly. 3. Inspection was of sampling type (instead of 100%). 3.1.2 SUPPLIER Y: 1. Weightless item not protected properly. 2. No proper packing system. 3. Cutting an punching tool wear out. 4. Maintained job sheet was not followed properly. 5. Supervisors were not instructing the operators about the job sheet, and no training provided for operators. 3.2 SUGGESTIONS: 3.2.1 SUPPLIER X: 1. The stopper pin size may be changed. 2. Butting for proper support may b provided. 3. Final inspection may be changed to 100%. 3.2.2 SUPPLIER Z: 1. Partition bin may be used for transporting, so the damage can be avoided. 2. The cutting and punching tool may be changed. 3. The tool history can be followed properly. 4. Operators can be trained. 14 14 3.3 CONCLUSION: The project allotted for me was A Study on SQMI Improvement for the Suppliers of Ashok Leyland, Chennai. The SQMI concept is purely based on the customers point of view. (i.e) In any part if there is a pull down arm that could be directly used by the customer more often, the weightage is given more to it, pulling down the suppliers SQMI score if there were problems in it. The areas that were of only lo w importance were given only less weightage. This concept was developed only two y ears back, uniquely followed by Ashok Leyland and it has been a great success in achi eving customer satisfaction. Every part that is procured from its suppliers by the com pany is ISO/TS 16949:2009 specified. This project gave me enough knowledge about the manufacturing process and it also made me realize how much the customer satisfac tion is important to a manufacturing company and how a company insists its suppliers in order to achieve it. In the end I would once again like to thank the suppliers of Ashok Leyland Ltd, Chennai who helped me in accomplishing this project and boosting my morale by gi ving me enough knowledge about the process and cooperation accompanying me despite th eir busy work schedule. 15 15 3.4 BIBLIOGRAPHY: 1) A case study on Anixters quality control that kept an automotive mirror manufacturer from shutting down. News letter Anixter, Nov 2006. 2) News letter on Surface Tension Transfer on sheet metal by Lincoln Electric, t he welding experts. 3) Success stories of automotive part manufacturers, quality manual, Quaker Management Services, vol 16, 2002 4) Mistake Proofing of operators: the ZQL system, by Productivity Press Developm

ent Team 1996 5) Juran on leadership for quality, by Joseph M.Juran 1989. 6) Factory physics by Wallace J. Hopp 2000.