1.

3 OBJECTIVES OF THE STUDY

1.3.1. PRIMARY OBJECTIVE
The primary object of this project is the effective implementation of six sigma at
Engineerings Aids

1.3.2. SECONDARY OBJECTIVES

To study about six sigma process in Engineering Aids.

To gain knowledge about the Six Sigma methodologies used for productivity
improvement.

To know about the Engineering Aids

1.4 IMPORTANCE OF THE STUDY

This project work deals with workers of ENGINEERING AIDS PRIVATE

LIMITED. And focus on the implementation of six sigma, Six sigma is the main area,
which provides vital information about the quality of manufacturing.

Six sigma is an

important tool, which mainly measures their quality.

This study mainly on six sigma prevailing at ENGINEERING AIDS PRIVATE

LIMITED in Chennai area.

2.1 COMPANY PROFILE

ENGINEERING AIDS born on June 1, 1948, Mr. R. Seshasayee is a Chartered
Accountant who started his career with Hindustan Lever Limited in 1971. He joined
Engineering Aids in 1976. Appointed as Executive Director in 1983, he was elevated as
Deputy Managing Director in 1993 and has been the Managing Director since April 1, 1998.
On the National Council of Confederation of Indian Industry (CII) for over 15 years,
he has been Chairman of several National Committees of CII including on Eighth Plan,
Economic Affairs, Defence, Surface Transport and International Trade & WTO. He was a
member of the Government of India delegations to Doha and Hong Kong Ministerial Rounds
of WTO in 2001 and 2005 respectively. He is also past Chairman of the CII - Southern
Region.
He is the immediate Past President of the CII. Currently, he is the Chairman of Indus
India Bank Ltd.
He was the President of Society of Indian Automobile Manufacturers- the apex body
representing automobile industry in India during 2001-2003, Seshasayee has served on
several professional committees such as the Accounting Standards Board and the research
committees of the Institute of Chartered Accountants of India. He is a member in the
governing council of the Institute for Financial Management & Research and the Academy
for Management Excellence. He is presently the Chairman of the Board of Governors of
National Institute of Technology Tiruchirapalli (NITT). He has served as a director in ICICI
Bank, EID Parry India Ltd, and Sundaram Asset Management Co. Ltd. He is also associated
with several charitable, cultural and social welfare organizations.
He is married with two sons. His wife, Usha Seshasayee is the President of Suraksha,
an NGO dedicated to Road Safety.

Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar2014 2014 2014 2014 2014 2014 2014 2014 2014 2015 2015 2015
Production 1497

V46 Induct
Manufold

Sales
Domestic
Sales
Exports
Production

YTD

941

578 1178 1573 1720 1842 2141 2766 1550 1711 2034 19531

596

599

1016 974 1281 1392 1451 1491 2120 1601 1621 2263 16405

36

108

130

122

216

204

116

192

258

103

310

281

2076

1369 1659 1421 2432 3024 3688 4093 4129 4141 5140 5627 7293 44016
995

1044 2412 2516 2880 3367 3400 2698 3316 5777 5364 6959 40728

99

150

277

362

323

402

273

230

298

308

420

475

3617

UTD20

Sales

Induct

Domestic

90

57

78

65

88

69

76

81

142

158

102

120

1126

Sales

24

54

50

70

72

50

83

48

97

82

107

77

814

22

81

21

12

33

10

27

21

47

12

286

Manufold

Exports
Production
2956 2657 2077 3675 4685 5477 6011 6351 7049 6848 7440 9447 64673
Sales
Scutt

Domestic
Sales
Exports
Production
Sales

Total

Domestic
Sales
Exports

1615 1697 3478 3560 4233 4809 4934 4237 5533 7460 7092 9299 57947
135

280

488

505

551

639

399

449

577

411

777

768

5979

Code of Conduct for Board members and the Senior Management

Members of the Board and the Senior Management, shall
a) Always act in the best interests of the Company and its stakeholders.
b) Adopt the highest standards of personal ethics, integrity, confidentiality and discipline in
dealing with all matters relating to the Company.
c) Apply themselves diligently and objectively in discharging their responsibilities and
contribute to the conduct of the business and the progress of the Company, and not be
associated simultaneously with competing organizations either as a Director or in any
managerial or advisory capacity, without the prior approval of the Board.
d) Always adhere and conform to the various statutory and mandatory regulations/guidelines
applicable to the operations of the Company avoiding violations or non-conformities.
e) Not derive personal benefit or undue advantages (financial or otherwise) by virtue of their
position or relationship with the Company, and for this purpose
i) Shall adopt total transparency in their dealings with the Company
ii) Shall disclose full details of any direct or indirect personal interests in
dealings/transactions with the Company.
iii) Shall not be party to transactions or decisions involving conflict between their
personal interest and the Companys interest.
f) Conduct themselves and their activities outside the Company in such manner as not to
adversely affect the image or reputation of the Company.
g) Inform the Company immediately if there is any personal development (relating to his/her
business/professional activities) which could be incompatible with the level and stature of his
position and responsibility with the Company.

Dividend
Dividend of 150% (Rs.1.50 per share) for the financial year 2007-08 was approved by
the Shareholders at the Annual General Meeting held on July 30, 2008 and paid to the
shareholders.
The dividend warrants in respect of the above have been posted to all the shareholders
at their registered addresses with the Company/Depositories.
Direct Credit (ECS) to shareholders a/c has been arranged to those who have opted
for it.
Investors may provide details of their Bank Account i.e. name of the Bank, Branch &
A/c No. to Depository Participant (DP) in respect of their holdings in electronic form and to
the Company in respect of physical holdings to enable printing of the same on the warrant.
This will help to avoid any fraudulent interception and encashment of dividend warrant.
Warrant will be posted to the registered address, wherever dividend mandate is not registered
with the Company.

All NRI shareholders are requested to furnish to the company an address in India and
also the details of their Bank Mandate to facilitate credit of their dividend amounts directly to
the Bank.
The dividend declared for the year end March 31, 1995, which remained unclaimed
has been transferred to the General Revenue Account of the Central Government in terms of
the provisions of Sections 205A of the Companies Act, 1956.
Any dividend, which is transferred to Central Government, may be claimed from the
Registrar of Companies, Shastri Bhavan, 26 Haddows Road, Chennai 600 006, Tamil Nadu
(by filling up Form II pursuant to the Companies Unpaid Dividend (Transfer to General
Revenue Account of the Central Government Rules 1978).

Consequent upon amendment to Section 205A of the Companies Act, 1956 and
introduction of Section 205C by the Companies (Amendment) Act, 1999, the amount of
dividend remaining unclaimed for a period of seven years shall be transferred to the Investor
Education and Protection Fund.
As per the new Section 205C, unclaimed dividend for the years from 1996 to 2000
has been transferred to the Investor Education and Protection Fund. Amounts transferred to
this fund cannot be claimed.
Electronic Clearing Service (ECS)
- Reserve Bank of India has introduced Electronic Clearing Service (ECS) for
facilitating crediting of dividend directly to the shareholder's bank account. This facility
eliminates loss of dividend warrants sent by post due to pilferage in transit, delay in receipt of
dividend warrants and ensures quick credit of the dividend.
- Under this arrangement, the payment instructions would be issued electronically
through our Banker to the Clearing Authority (Reserve Bank of India) and the Clearing
Authority would supply credit reports to the Bank with which shareholder maintains the
specified Account and his/her bank will give instant credit to shareholders account.
Shareholders should avail ECS facility.

-Please furnish information as required in the format, accurately and complete in all
respects (Use separate sheet for each folio). The information will be kept confidential and
will be utilized only for the purpose of effecting payments meant for holders.
Listing
The Company's shares are listed on the Madras, Bombay and National Stock
Exchanges.
Based on shareholders' approval at the AGM held on 22.7.2003, the shares have been
delisted from The Stock Exchanges, Ahmadabad with effect from 15.1.2004, The Delhi Stock
Exchange Association Limited with effect from 23.1.2004 and The Calcutta Stock Exchange
Association Limited with effect from 25.4.2005.
The GDRs and FCCNs are listed on the London Stock Exchange.

The Listing Fee has been paid up to date, to all the Stock Exchanges.
The Privately Placed Debentures of the Company are listed with Bombay Stock
Exchange Limited and National Stock Exchange of India Limited.
Corporate Governance
The Board of Directors and the Management of Engineering Aids are committed to
the enhancement of shareholder value.
>

Through sound business decisions, prudent financial management and high standards

of ethics throughout the organization

>

By ensuring transparency and professionalism in all decisions and transactions and

>

achieving excellence in Corporate Governance by conforming to, and exceeding

wherever possible, the prevalent mandatory guidelines on Corporate

The company has adopted a Code of Conduct for the members of the Board and
senior management, who have all affirmed in writing their adherence to this Code.

Another significant step has been the appointment of an Ombudsman to deal with any
references, complaints or grievances about the Company, its employees or its dealings.
If the suppliers, employees or customers have any suggestions on governance issues
or grievances or complaints on Engineering Aids practices - inclusive of its executives in
various functions - which they feel ought to be raised with the Ombudsman and not with the
usual channels of business, they may do so.
It is advised that the regular business dealings should be through the usual business
functional channels. The Ombudsman will not deal with them under normal circumstances.
The Ombudsman is Mr. N. Mohanakrishnan, a former Executive Director of the
Company, with an excellent understanding of Engineering Aids as an organization and its
functioning, having been with the company for nearly 30 years.

GEMBA

Gemba is a Japanese word meaning Real Place where the real action takes place.
In the manufacturing industry, there are 3 major activities directly related to earning money,
developing, producing and selling products.

Engineering Aids offers a comprehensive

product range with trucks from 7.5 tons GVW to 125 tons GVW. From 19 to 80 seaters a host
of special application vehicles and diesel engines from industrial Gensets and marine
application. Product profile can be broadly split into six categories viz. passenger, goods,
cargo, heavies, special Vehicles and Engines.
GEMBA KAIZEN
Three ground rules for practicing kaizen in Gemba.
1. House Keeping
2. Muda Elimination [Waste Elimination]

Waste of over production

Waste of inventory

Waste of waiting

Waste of Motion

Waste of processing

3. Standardization.
GEMBA MISSION: N7i+1
New 7 initiatives and added one are:
1. Increase in the number of GEMBA
2. 5s [SEIRI,SEITON,SEISO.SEIKETSU,SHITSUKE]
3. EEI (Effort and Ergonomic index)
4. CMI (Cost management initiative)
5. Inventory Initiative
6. Critical machine uptime
7. Quality
8. Safety

2.2 PRODUCT PROFILE:

UTD 20 Induct Manufold

Designation: UTD-20
Manufactured by:

BARNAULTRANSMASH OJS Holding company

Type: Engine and Systems

Name:

Diesel engine

Specifications
Property

Value

Number of cylinders

Engine power output (h.p.)

Cylinder bore (mm)150
Cylinder stroke (mm)

150

Weight (kg) 667

Length (mm)874
Width (mm) 1150
Height (mm) 742

V46 Induct Manufold

300

ENGINE UTD-20

SPECIFICATION
Description Diesel
6 Cylinder V 120
Direct Injection
Four Stroke
Water Cooled
Rating

220 KW/300 BHP at 2600 RPM

Max. Torque at 1500 - 1600 RPM

100 Kgm or 981 NWM

Bore/Stroke 150/150 mm
Specific Fuel Consumption

178 Gms/HPh or 243 Gms/KWh

Starting system

Compressed air/Electric

Weight of Engine

665 Kg.

Power to Weight Ratio

0.32 : 1 KW/Kg

Engine Dimension Length

Width

1150 mm

Height

757 mm

834 mm

3. LITERATURE REVIEW
3.1 SIX SIGMA
The term Six Sigma originated from terminology associated with manufacturing,
specifically terms associated with statistical modeling of manufacturing processes. The
maturity of a manufacturing process can be described by a sigma rating indicating its yield, or
the percentage of defect-free products it creates. A six sigma process is one in which
99.99966% of the products manufactured are statistically expected to be free of defects (3.4

defects per million). Motorola set a goal of "six sigma" for all of its manufacturing
operations, and this goal became a byword for the management and engineering practices
used to achieve it.
The six sigma approach was first introduced and developed at Motorola in early 1990s. Later
in the mid-nineties, it was adopted by General Electric and Allied Signal. According to Jack
Welch CEO of GE "Six sigma is the most challenging and potentially rewarding strategy GE
have ever undertaken". Six sigma was originally centered on manufacturing improvements.
The reason for this was knowledge of the statistical tools in the manufacturing functions and
the ease with
Which we can quantify the benefits. However these improvements were not readily seen by
the customers. The approach was therefore broadened to all business operations.
Sigma () is Greek letter that is used to describe variability. In statistical quality control, this
means "standard deviation". Six Sigma quality level allows an off-centering of the process up
to 1.5 .
The properties of normal distribution:

68.27% of the area lies within mean 1

99.73% of the area lies within mean 3

99.9999998% of the area lies within mean 6

Fig 3.1.1: Area under Normal Curve

3.2 THE SIX SIGMA APPROACH

Six Sigma is different and its approach is also unique because of the following
characteristics:

Focus on bottom line results

The focus on financial and business results is to some extent unique. Six Sigma
usually requires financial returns from most projects and from each full-time Six Sigma
specialist. Six Sigma places a clear focus on getting bottom line results. Identification of

the business impact is part of the methodology. Six Sigma projects are approved only
when bottom line impact is shown.

Data driven approach

As said by W. Edward Deming In God we trust, all others must bring data, data is
the most important resource for implementation of Six Sigma. Use of specific metrics
is also new with Six Sigma. Measurement of DPMO, critical-to-quality (CTQ), or
process sigma highlights the importance of improvement and encourages difficult but
attainable goals for improvement. Six Sigma requires a disciplined approach toward
measurement and improvement.

Human resources
Six Sigma utilizes full-time specialist in the projects contrast to part-time staff in the
earlier improvement approaches. Six Sigma emphasizes on training to Black Belts,
Green Belts, etc. Six

Sigma creates an infrastructure of Champions, Master Black Belts, Black Belts and
Green Belts that lead deploy and implement the approach.

Structured approach
In Six Sigma the deployment approach and structure are new. Six Sigma DMAIC and
DMADV methodology sequences and links in useful way key statistical and other
tools have been found to be effective in improving processes.