School of Mechanical and Aerospace Engineering Nanyang Technological University Singapore

GROUP PROJECT MA6535 Management of Global Manufacturing

PROJECT TITLE

Analysing supply chain of automotive industry with the context of global manufacturing

COURSE COORDINATOR Associate Professor Sivakumar Appa Iyer

TEAM MEMBERS
RAMANATHAN RAMANATHAN KANNAN SOMASUNDARAM MOORTHY ASHOKAN MUTHUKUMAR SG MAHESHWARAN MASILAMANI KANNATHASAN NARESHKUMAR G1101248A G1101243E G1101249J G1102334J G1102357G M.Sc., Logistics (Full-Time) M.Sc., Logistics (Full-Time) M.Sc., Logistics (Full-Time) M.Sc., Logistics (Full-Time) M.Sc., Precision (Full-Time)

Introduction:
Ikeda Hoover Ltd (IHL) was established in 1986 to supply seating modules on a synchronous basis to Nissans UK plant located in Sunderland. The company undertakes cutting and sewing, injection moulding, welding and assembly activities within a single plant located within five minutes of the Nissan car plant. It is a joint venture company between Ikeda Bussan of Japan and Johnson Controls Inc. USA. Ikeda Bussan is a major seat and interior trim manufacturer in Japan supplying Nissan, Honda, Mitsubishi and other Japanese and world customers. Ikeda Bussan is in turn a subsidiary of Nissan. Johnson Controls is a multinational organization with 12 billion dollar annual turnover. Its Automotive Division has expanded extensively from America in to Europe with foam, cut and sew, and seat assembly plants. Their major customers include General Motors, Ford, Rover, Nissan, Honda, and Renault. The joint venture was formed in 1986 to supply Nissan Motor Manufacturing UK Ltd. (NMUK) with car seats on a synchronous just-in-time basis, initially for the Bluebird. Present production is for the Micra, and new Primera which was launched in 1996. New products include the Primera estate, to be launched in early 1997, and the third model recently announced by Nissan. The way it works with IHL and Nissan Manufacturing UK (NMUK) is by computer link. Nissan downloads information onto our computers, informing us exactly when each car has joined their production line. The computer at NMUK tells Ikeda Hoover Limited (IHL) what seat to make i.e., variant, colour and other specifications, to enable the correct seat to be put together. We have no more than approximately two and a half hours in which to manufacture and deliver the seat to the Nissan assembly operator at lineside. In this way the NMUK and IHL production lines are synchronized. As each seat at IHL is a particular car at Nissan, there is no end of line stock at IHL. The seats have to be produced right first time, every time. IHL is, therefore, at the leading edge of the European Automotive supply industry.

Synchronous Manufacturing:
Synchronous Manufacturing is an operational strategy that incorporates lean principles, but adds flexibility to the process. Where lean manufacturing is oriented toward a repetitive manufacturing environment, synchronous manufacturing applies to low-volume/high mix type of order characteristics. It also applies to environments where a large degree of customization or "customerization" is required, or a make-toorder environment. Lean manufacturing applies best when the order characteristics are high-volume/lowmix. In these cases, components are identical, or differences lie in scale or size. WIP inventory is low in variety and can be controlled with ease. In contrast, in a lowvolume/high-mix environment, the componentry tends to vary greatly, and the WIP inventory mix is characterized with a much greater variety, and is more difficult to control. Synchronous manufacturing employs the synchronization between customer orders and work stations. In other words, the first order worked on in the first work station is the first work order worked on in the second station, and so on. This requires a good systems scheduling algorithm often using a first-in/first-out method to scheduling customer orders. Synchronous manufacturing can be applied within an Agile Manufacturing strategy. Synchronous scheduling is often mixed in the same manufacturing environment with Kan-ban signals, but at a later stage in the manufacturing process. For instance, a process that begins by taking raw steel and producing blanks can be scheduled using Kan-ban pull devices. When customer orders are scheduled for production, the blanks are pulled for the first operation, where changes to the blanks may be varied from piece-to-piece. A device known as a production synchronizer often separates the blanking operation (Kan-ban scheduled) from the flexible downstream operation (synchronous scheduled). Flexible Kan-bans or "Flex-bans" can be used to control WIP locations and prevent spilling into the aisles. The benefits generally are higher flexibility, lower costs, higher quality, lower inventory, and shorter lead times. The characteristics of synchronous processes are: Make to order Synchronized production Just-In-Time materials/pull scheduling in early stages Synchronized scheduling in later stages

Short cycle times Highly flexible and responsive processes Highly flexible machines and equipment Quick changeover Continuous flow work cells Collocated machines, equipment, tools and people Compressed space Multi-skilled employees Empowered employees High first-pass yields with major reductions in defects

Modular Manufacturing:
The term modular manufacturing model refers to a model of a manufacturing system based on modularization theory. The manufacturing system created based on design, construction, operation and control technology derived from this model is the modular manufacturing system. The modular manufacturing model has in its background a paradigm as follows. The manufacturing system (mechanical) and its information system reflect each other. This results in a comprehensive model of representation, design, construction, control and operation, and the systems themselves, including exchange of information between the two systems. We may easily accept the idea that within the information system that corresponds to the physical systems (manufactured objects that have physical shapes and characteristics, manufacturing resources, manufacturing equipment, etc.), description and handling are performed in a unified manner. It follows, then, that objects and information are exchanged in a unified manner.

Buyer-Supplier Relationship:
The relationship between a supplier and buyer can be a complex one. Each party wants to maximize its time, resources, and cash investment; these may be competing priorities that can strain the relationship. For such a partnership to succeed, it is paramount there exists a mutual business understanding underscored with respect and a sincere wish for each party to prosper. Creating this balance does not mean driving for the lowest possible price with no regard for the true expense incurred, but rather recognizing that the success of one partner helps the success of the other. The relationship is complicated, but the best

partnerships can be attained by focusing on three critical and intertwined business tenets: Compliance with local and international regulations Conduct that breeds honesty, respect and open dialogue Strategic financing that benefits both parties.

Just in Time (JIT):

Just in Time is a production strategy that strives to improve a business return on investment by reducing in-process inventory and associated carrying costs. Just-intime production method is also called the Toyota Production System. To meet JIT objectives, the process relies on signals or Kanban between different points in the process, which tell production when to make the next part. Kanban are usually 'tickets' but can be simple visual signals, such as the presence or absence of a part on a shelf. Implemented correctly, JIT focuses on continuous improvement and can improve a manufacturing organization's return on investment, quality, and efficiency. To achieve continuous improvement key areas of focus could be flow, employee involvement and quality. The Main benefits of Just in Time include

Reduced setup time. The flow of goods from warehouse to shelves improves. Employees with multiple skills are used more efficiently. Production scheduling and work hour consistency synchronized with demand. . Increased emphasis on supplier relationships Supplies come in at regular intervals throughout the production day. Minimizes storage space needed. Smaller chance of inventory breaking/expiring.