A

PROJECT REPORT
ON
“Work place improvement at M/S Solcon Engineers Pvt
Ltd by implementing “5S” methodology for Thermax
Ltd”
Submitted To:
Savitribai Phule Pune University

In Partial Fulfillment of the Requirement

For the Award of

“MASTER OF BUSINESS ADMINISTRATION”

(OPERATIONS SPECIALIZATION)
BY
Mr. SHRIKANT V.WANKHADE

PROJECT GUIDE
Prof. Vivek Swami

Sinhgad Institute of Business Administration and Research

Kondhwa, Pune- 48
2014-2016

1
 CERTIFICATE

This is to certify that SHRIKANT V. WANKHADE student of SINHGAD

INSTITUTE OF BUSINESS ADMINISTRATION & RESEARCH, PUNE
has completed his Project work report at THERMAX LTD PUNE on the topic of
“WORK PLACE IMPROVEMENT AT M/S SOLCON ENGINEERS PVT
LTDBY IMPLEMENTING “5S” METHODOLOGY FOR THERMAX
LTD” has submitted the Project work report in partial fulfillment of MASTER
OF BUSINESS ADMINISTRATION of the SAVITRIBAI PHULE
PUNEUNIVERSITY for the academic year 2014-2016.He has worked under our
guidance and direction. The said report is based on bonafide information.

Prof. Vivek Swami

Dr. Avadhoot Pol

(Project guide) Director

Date:-

Place:-Pune

2
 Sinhgad Institute of Business Administration and Research,
Kondhwa (Bk.), Pune

Institution Approval Letter

Summer Internship Program

Mr.Shrikant V.Wankhade batch2014-2016 is granted permission by the institute

to do the Summer Internship Project titled “Work place improvement at M/S
Solcon Engineers Pvt Ltd by implementing “5S” methodology for Thermax
Ltd” Pune. During3rdJune2015 to 2ndAugust 2015.

Prof. Vivek Swami Dr. AvadhootPol

Project Guide Director

Place:

Date:

3
 DECLARATION

I hereby declare that the project titled “WORK PLACE IMPROVEMENT AT

M/S SOLCON ENGINEERS PVT LTD BY IMPLEMENTING
“5S”METHODOLOGY FOR THERMAX LTD”is an original piece of
research work carried out by me under the guidance and supervision of Prof.
Vivek Swami. The information has been collected from genuine & authentic
sources. The work has been submitted in partial fulfillment of the requirement of
Master of Business Administration to Savitribai Phule puneUniversity.

Date:
Place: Pune Signature
Shrikant V. Wankhade

4
 ACKNOWLEDGEMENT

“You cannot manage what you cannot measure”

It is my Great pleasure to present this report to Project Guide Prof. Vivek Swami for
giving valuable suggestions, guidance, and ideas for their constant follow-up and co-
operation in making this project.
I would like to take this opportunity to express my gratitude towards all those people
who gave me the opportunity to complete this project. I express my honest and
sincere thanks to my Company project guide Mr. Shivnath Naik Dy Manager
,Thermax Ltd Pune not only for guiding me through my project, but for being my
motivator and mentor throughout the project period at Thermax ltd Pune. He helped
me with all the resources and information needed related to the project and also
provided me with the practical industrial experience which will be of immense help
for me in my future.

5
 Chapter 1
Introduction to the study

6
 CHAPTER 1

INTRODUCTION TO THE STUDY

1.1 Introduction About the Project

Many manufacturing facilities have opted to follow the path towards a “5S”
workplace organizational and housekeeping methodology as part of continuous
improvement or lean manufacturing processes.
5S is a system to reduce waste and optimize productivity through maintaining an
orderly workplace and using visual cues to achieve more consistent operational
results. The term refers to five steps – sort, set in order, shine, standardize, and sustain
– that are also sometimes known as the 5 pillars of a visual workplace. 5S programs
are usually implemented by small teams working together to get materials closer to
operations, right at workers‟ fingertips and organized and labeled to facilitate
operations with the smallest amount of wasted time and materials.
The 5S system is a good starting point for all improvement efforts aiming to drive out
waste from the manufacturing process, and ultimately improve a company‟s bottom
line by improving products and services, and lowering costs. Many companies are
seeking to making operations more efficient, and the concept is especially attractive to
older manufacturing facilities looking to improve the bottom line by reducing their
costs.
“A place for everything, and everything in its place” is the mantra of the 5S method,
and storage and workspace systems such as those provided by Lista International
allow improved organization and maximum use of cubic space for the highest density
storage. The result is an improved manufacturing process and the lowest overall cost
for goods produced.
1.2.SIGINIFICANCE TO THE STUDY

Implementing the 5S method means cleaning up and organizing the workplace

in its existing configuration. It is typically the first lean method that organizations
implement. This lean method encourages workers to improve their working
conditions and helps them to learn to reduce waste, unplanned downtime, and in-
process inventory.

7
A typical 5S implementation would result in significant reductions in the square
footage of space needed for existing operations. It also would result in the
organization of tools and materials into labeled and color coded storage locations, as
well as “kits” that contain just what is needed to perform a task.
The 5S methodology is a simple and universal approach that works in companies all
over the world. It is essentially a support to such other manufacturing improvements
as just-in-time (JIT) production, cellular manufacturing, total quality management
(TQM), or six sigma initiatives, and is also a great contributor to making the
workplace a better place to spend time.

Scope: Work Place Improvement at Fabrication Supplier (Ash

Handling Vendor) M/s Solcon Engineers Pvt. Ltd.

Performance Measure‟s:

1) Total Space released in %

2) Searching time reduction in Hrs
3) Workplace Co-operation
4) Total Inventory in rupees.
2) Diagnosis

Study current facility arrangement - cleanliness, material storage system , current layout
&inventory system .

3) Pre-work / solution design

* Clean shop floor, implement 1S and 2 S, and implement layout and material storage system.

* Implement visual dash board

4) Implementation

 Establish Functional Entrepreneur Improvement Team

 Start 5S through Employee participation & Workplace cooperation
 Start '10 minutes Line Meeting

5) Monitoring and Sustainability

* Document the activities

8
Limitation for the Green channel implementation at Vendor .

 Resistance for the Up gradation of Transformation

 Investment for Storage Rack, Scrap Bin etc.
 Manpower Resources
 Limited knowledge Sharing and understanding with in the Group
 Interest of Vendors

9
 Chapter 2

Objective of the study

10
 CHAPTER 2

OBJECTIVE OF THE STUDY

Primary Objective

 To implement the “5S” methodology at M/s Solcon Engineers Pvt.Ltd

Secondary Objective

 To check and improve on time performance.

 To study and analysis the percentages of the defect on the process and ensure
the zero defect.
 To ensure the optimum utilization of resources at factory level.
 Self-certification by the vendors

11
 Chapter 3
Research Methodology

12
 CHAPTER 3

RESEARCH METHODOLOGY:
RESEARCH

Research in common parlance refers to a search for knowledge. Once can also define
research as
a scientific and systematic search for pertinent information on a specific topic. In fact,
research is an art of scientific investigation.

RESEARCH METHODOLOGY:

Adoption of appropriate methodology is an essential characteristic of quantity

research studies irrespective of the discipline with which they are relative.
Methodology provides a way and guiding principles for research. It is defining and
redefining and evaluating data, making deduction & giving conclusion.

RESEARCH PROCESS FLOW CHART

Review The literature

Review concept
Define and theories Interp
research Design Collect Analyze
ret &
problem Review previous Research data data
F F report
research finding

1)Definition of problem statement:

 Space Constraints- No sequence of workstations and allocated area for each

workstation causing lack of optimum utilization of space & resources.
 Improper Planning & Scheduling- There is gap between production loading
sheet V/s Customer requirement

13
Problem Statement:

1) Time loss during the issue of tools and materials from the stores.

2) Time loss during finding the root cause of the problem in the Machine

Maintenance

3) Time loss during loading & unloading of material.

2) Review the literature:

a) Review concept and theories:

1) The theory about the “5S”, Standardization, codification and
classification, and various Root Cause finding techniques were studied.

3) Design Research:

For this project Descriptive type Research Methodology is used.

4) Data Collection of the study:

Primary source:

 Data is collected by interviewing the M/s SolconVendors at various levels in

the factory.
 Data related to project purpose is also collected by discussing with the
Department Heads of Maintenance, Machining and Production Department.

Secondary source:

 Through the previous and current company records such as stock register,
material issue receipts, Maintenance Records, Monthly Maintenance Reports,
Books and Web sites are used to collect the data.
5) Analysis and interpretation of the data:
The analysis of the datacollected was based on the observation method as per
as “5S” concern. The mathematical calculation are used to find out the time
saving were used to analysis the data .were as table and graph are used to
analysis the data.

14
 Chapter 4
Company Profile

15
 CHAPTER 4
COMPANY PROFILE

THERMAX is a leading, Global Company specializing in the areas of generation

and conservation of energy and preservation of the environment. With an annual
turnover of INR ₹ 5577 Cr, the company provides integrated services and equipment
in Boilers and heaters, Captive power, Cooling, Waste Water Solutions and
Chemicals. It has joint ventures with Babcock & Wilcox and Energy Performance
Services. The company has a global reach with 11 overseas offices and a domestic
network of 12 sales and service offices.

1. Thermax Ltd. :

For designing and manufacturing of high pressure, high capacity water tube
boilers and merger of energy division with it.

2. Thermax – Energy Performance Services LTD.:

This collaboration was made to support energy division and also for research
works in waste flue gas utilization techniques.

VISION

To be a globally respected
high performance
Organization offering
sustainable solutions
in energy and environment
Late Mr. R. D. Aga MrsMeherPadumjee

16
 BOILERS

ENERGY CHILLERS

POWER

PPE &
THERMAX LTD. SERVICES
AIR POLLUTION
CONTROL

WATER &
WASTE
ENVIRONMENT SOLUTIONS

CHEMICALS

Company flow

Thermax is a leading, global company specializing in the areas of generation and

conservation of energy and preservation of the environment. With an annual turnover
of INR ₹ 5577 Cr the company provides integrated services and equipment in boilers
and heaters, Captive Power, Cooling, Water and Waste Solutions and Chemicals.

Thermax has been rolling out a company-wide initiative to transform the way it does
business, aimed at significant increase in customer satisfaction and top line and
bottom line growth. The company is investigating substantial resources in attaining
operational excellence-focusing on processes and systems that have a direct impact on
cost, quality, lead-time and on-time performance at every point of customer
engagement. The following is the detailed description of the whole organization. It
includes the following divisions:

1. Boilers & Heaters

2. Cooling & Heating
3. Water & Water Waste Solutions.

17
Sustainable Solutions in Energy and Environment

Thermax Group is an INR 5577 Cr company, providing a range of engineering

solutions to the energy and environment sectors.

Thermax headquartered in Pune, India and operate globally through 19 International

offices, 12 Sales & Service offices and 12 manufacturing facilities - 7 of which are in
India and 5 overseas.

Thermax presence spans 75 countries across Asia Pacific, Africa and the Middle East,
CIS countries, Europe, USA and South America.

The group consists of 5 domestic wholly owned subsidiaries, 16 overseas wholly

owned subsidiaries and 2 joint ventures.

Tuning to the needs of the day, all our solutions are innovative, energy-efficient,
environment-friendly and easy to operate.

Solutions Suite – Innovative and Eco-friendly

Thermax Ltd solutions specifically focus on:

 Heating equipment - using a variety of fuels, including biomass

 Absorption chillers - fired by waste heat or steam
 Power and captive cogeneration plants
 Waste heat recovery units
 Waste water management systems – pre-treatment, waste water treatment and
chemical conditioning of water, sewage effluent treatment and recycling
 Air pollution control systems
 Performance improving chemicals
 Solar based heating, cooling and power

Product Range – Diverse and Efficient

18
From experience of over four decades in the energy sector, Thermax offer a range of
boilers and thermal oil heaters, energy chillers and customized products like exhaust
gas boilers. Thermax absorption chillers have found a niche in green energy systems
in Europe and Australia. Thermax also help industries reduce energy costs by shifting
to abundantly available, alternate energy such as biomass.

Industry-specific Solutions – Clean and Green

Thermax provides industries with clean technologies that recover pollutants; thereby
reducing their hazardous impact on the environment. Today, many iron & steel,
cement, fertilizer and chemical industries reduce emissions using thermax air
pollution control systems.

THERMAXBUSINESSOVERVIEW

The Boiler & Heater Group, Thermax's largest business division, provides equipment
and solutions to generate steam, power and for process heating. The business offers
equipment and systems on a turnkey basis, EPC packaging of balance of plant for
power plants, and service solution for old boiler and process furnaces.

The core competence of the business is thermal and combustion engineering to

provide energy solutions to the entire industry. This is supported by its own
manufacturing facilities in Pune (Maharashtra, India), Vadodara (Gujarat, India)
&Mundra (West Coast in Gujarat, India).

Thermax has an international sales and service network covering the Americas,
Europe and Central Asia and South East Asia. It has ISO 9001:2000, ISO 14000 and
ISO 18000 accreditation. Thermax's successful track-record of project management,
in-house construction and commissioning expertise, and state-of-the-art
Manufacturing facilities allow the company to provide complete turnkey solutions.
The Mundra facility is in the special economic zone and within 6 km from a deep-
draft port thereby enabling the unit to build large boiler assemblies for direct shipment
to port.

19
The products are offered for the entire range of pressure and temperature for
capacities ranging from 25 tons per hour (TPH) to 1000 TPH. The solutions offered
for steam generation are configured using a combustion system and integrating it with
a steam generating system. This selection is governed by the type and characteristics
of the fuel to be used and the steam generating capacity required. The offerings cover
the following application:

 Fossil fuel fired boilers for solid, liquid or gaseous fuels

 Waste to energy products for solid – liquid – gaseous wastes, gaseous waste
heat source and waste of gases
 Process integrated and waste heat boilers
 Process furnaces and fired heaters
 Capacity enhancement, renovation and modernization, spares, repair and
service for old boilers.

The entire range of product offerings and services serves all industrial segments like
power, oil & gas, metallurgy, chemicals & pharmaceuticals, and the service industry.

20
 COMPANY PROFILE OF SELECTED VENDOR

SOLCON ENGINEERS PVT.LTD.

LOCATION: SHINDEWADI, PUNE SATARA ROAD

The Company is promoted by Mr. G. B. Ghule and Mr. A. B. Gokhale in the

year 1982. On 3rd January1983, it was incorporated. The company manufactures
conveying systems on turnkey basis comprising of Equipment‟s like Belt Conveyors,
Screw Conveyors, Roller Conveyors, Chain Conveyors, Slat conveyors, Bucket
Elevators, Vibratory Feeders, Silos etc. for handling wide range of materials like coal,
ash, limestone, iron ore etc. The company also manufactures Coal Handling Systems
for coal fired fluidized bed combustion boilers as well as other types of boilers and
manufactures the coal crushers and vibrating screens required for the same.

Shri G. B. Ghule had ten years of experience in manufacturing and erection of coal
fired boilers prior to promoting this company. Shri A. B. Gokhale had five years of
experience in designing and selling / marketing of boilers prior to promoting this
company.

The company has design department well equipped and managed by competent
design Managers, Engineers and Draught men and Manufacturing facility at AtPost
:ShindewadiTaluka -: Bhor,Distt. Pune, Maharashtra State for manufacturing key
conveyor components like idlers and pulleys and equipment‟s like crushers, screens,
screw conveyors bucket elevators etc. The company has adequate strength of erection
engineers and skilled workmen for carrying out erection and commissioning at sites.

21
 Organization Chart

Director - 1

Production dept. Project Purchase dept. Design dept. Qc dept.

Management Dept.
dept.

Production Gm Purchase Design manager Qc engineer

Management
manager project manager
Representative

Internal Auditor
] Qc inspector
Production Sr. Project Sr. Design incharge
engineer engr.
purchase
officer
Store keeper Draughtsman
Project engr. Purchase
assistant

M/s Solcon Engineers pvt.ltd

Shindewadi ,Pune – Satara Road ,Pune.

22
 Chapter 5
Literature Survey

23
 CHAPTER 5

LITRETURE SURVEY

5.1What is Green Channel?

Green Channel is a direct channel by which vendor can supply items directly to our shop
/store for ultimate use where inspection is skipped .it is the process of working with existing
vendor on a one-to-one to improve their performance to “self-certified” levels for the mutual
benefit of both organizations. This concept is closely associated with „strategic partnering‟.

Why there is Green Channel certification for Vendors?

 Improving vendors delivery and quality performance

 Improving business alignment between the vendors and the buying
organization
 Developing product and services not currently available in the market place
 Meet the requirement of the environment , health and safety standards
 Reducing the “total cost” for both the vendors and buying organization
 Strategic tie up ensures assured business in futures for green channel vendors

Green Channel vendors are Vendors who have been Certified to be able to ensure customer
satisfaction by consistently delivering product /services with “Zero defect “ at desired level of
service.

Green Channel items are those items which have been Certified to be able to be used
without verification of the quality by user and which shall perform their intended function for
the desired period of time .

24
 5.2.BRIEFABOUT 5S WORKPLACE ORGANIZATION

5S is one of the most widely adopted techniques from the lean manufacturing
toolbox. Along with Standard Work and Total Productive Maintenance,5S is
considered a "foundational" lean concept, as it establishes the operational stability
required for making and sustaining continuous improvements.

The primary objective of 5S is to create a clean, orderly environment- an environment

where there is a place for everything and everything is in its place. Beyond this, many
companies begin their lean transformation with 5S because it exposes some of the
most visible examples of waste it also helps establish the framework and discipline
required to successfully pursue other continuous improvement initiatives.

5S Workplace Organization
A Clean, Uncluttered and
well Organization work place

Star S1 –SEIRI S2-SEISOU

t
S3-
SEITON

S5-SHITSUKE S4-SEIKETSU

5S METHODOLOGY

25
 Brief introductions about “5S” methodology.

5S What does it mean? Why is it important ? What problem are avoided?

Seiri Remove all items not needed • Space, time, money, energy,
for current production and other resources can be
operations. managed and used most
effectively.
Eliminate the unnecessary
• Reduces problems and
items.
annoyances in the work flow.
• Improves communication
between workers.
• Increases product quality.
• Enhances productivity
• The factory becomes increases
crowded and hard to work in.
• Storage of unneeded items gets in
the way of communication.
• Time wasted searching for
parts/tools
• Unneeded inventory and
machinery are costly to maintain.
• Excess stock hides production
problems.
• Unneeded items and equipment
make it harder to improve the
process flow.

Seiton • Arrange needed items so • Eliminates many kinds of • Searching waste.

that they are easy to use.
• Label items so that anyone
can find them or put them
away.
waste, including:
• Searching waste. (time)
• Waste due to difficulty in
using items.
• Waste due to difficulty in
returning items.
• Waste of human energy.
• Waste of excess inventory.
• Waste of defective products.
• Waste of unsafe conditions.

Seisou • Keep everything, every day, •Turn the workplace into a
swept and clean. clean bright place where
everyone will enjoy working.
• Keep thing in a condition so
it is ready to be used when
needed.
• Defects are less obvious.
• Puddles of oil and water cause
slipping and injuries.
• Machines that do not receive
sufficient maintenance tend to
break down and cause defects.

Seiketsu Integrates Sort, Set in Order, • By ensuring conditions do
and Shine into a unified not deteriorate to former
whole. state, facilitates
implementation of the first
three pillars.
• Conditions go back to their old
undesirable levels.
• Work areas are dirty and
cluttered.
• Tool storage sites become
disorganized and time wasted
searching for tools.
• Clutter starts to accumulate over
time.
• Backsliding occurs.

shitsuke • Making a habit of properly
maintaining correct
procedures. • Instill discipline
necessary to avoid
backsliding.
• Consequences of not
keeping to the course of
action greater than
consequences of keeping to it.
• Unneeded items begin piling up.
• Tools and jigs do not get returned
to their designated places.
• No matter how dirty equipment
becomes, nothing is done to clean
it.
• Items are left in a hazardous
orientation.
• Dark, dirty, disorganized
workplace results in lower morale.

26
 Chapter 6
Problem identification

27
 CHAPTER 6

PROBLEM IDENTIFICATION

6.1PROBLEM IDENTIFACTION AT VENDORS END

Sr. Code Problem Summary

No.

1 P1 Space Constraints

2 P2 Competency Of Manpower

3 P3 Employee turn over ratio is high

4 P4 Unsafe act and Unsafe Condition

5 P5 Improper Planning & Scheduling

6 P6 Waiting time for inspection

7 P7 Improper Documentation flow

8 P8 Rework Occurrence in housing and cover assembly

Purpose:- The problem identification at vendors end to know about what actual
problem they have which effect on the quality of the product.

28
6.2SELECTION OF PROBLEM BASE ON PRIORITY

Sr. Code Problem Summary M/s M/sThermax Facilitator

No. Solcon Priority Priority
Priority

1 P1 Space Constraints 8 1 1

2 P2 Competency Of Manpower 7 2 6

3 P3 Employee turn over ratio is 5 8 5

high

4 P4 Unsafe act and Unsafe 6 4 7

Condition

5 P5 Improper Planning & 3 3 2

Scheduling

6 P6 Waiting time for inspection 4 7 3

7 P7 Improper Documentation flow 2 5 8

8 P8 Rework Occurrence in housing 1 6 4

and cover assembly

Purpose: - To identify the all problems to improve the process at Vendors Enterprise.
To understand the current status of M/s Solcon engineers pvt for all processes. After
identifies the problems there are area of improvement. So that Thermax can make the
correct action plan by using this report.

29
6.3DEFINITION OF PROBLEM

Code Problem Summary Facilitator Definition Of Problem

Priority

P1 Space Constraints 1 No sequence of workstations and

allocated area for each workstation
causing lack of optimum utilization
of space & resources.

P5 Improper Planning & 2 There is gap between production

Scheduling loading sheet V/s Customer
requirement

P6 Waiting time for inspection 3 2 days lost in waiting for inspection

after readiness of material causing
delay in delivery.

P8 Rework Occurrence in 4 Housing and cover assembly does

housing and cover not matching due to close tolerances
assembly which causes 40% rework.

P3 Employee turn over ratio is 5 Frequency of employee turn over

high ratio is more than 50%.

P2 Competency Of Manpower 6 Lack of awareness about welding

processes and knowledge to fitter
about interpreting the drawings &
QAP.

P4 Unsafe act and Unsafe 7 Non-Adherence to Safety PPE and

Condition No proper house keeping.

P7 Improper Documentation 8 In adequacy of Documentation

flow submittal leading to delay in GRN
process.

30
SOLUTION AND POSSIBILITIES

 To overcome above problem space constrain there need to be follow Good

Industrial practices and give the training for implementation.
 It is conclude that Green Channel Principal implementation at vendor Place.

31
 Chapter 7
Data Collection And Analysis

32
 CHAPTER 7

DATA COLLECTION & ANALYSIS

7.1.QUALITY & DELIVERY PERFORMANCES

33
 7.2.PLAN OF ACTIOINS AND MILE STONE CHART FOR M/s
SOLCON

Plan Of Actions Start Date End Date

1) Green Channel Concept Sharing to the Vendor 19-Jun-2015 19-Jun-2015

2) Establish Functional Entrepreneur Improvement Team (EIT)

 Discuss and finalize names of EIT members 19-Jun-2015 19-Jun-2015

 Finalize day, time and venue for weekly EIT meeting 24-Jun-2015 24-jun-2015
 Review progress on improvement projects and activities 24-Jun-2015 24-jun-2015
every week in EIT meeting
3) Start '10 minutes Line Meeting
 Finalize Org Chart and prepare Plant layout map 29-Jun-2015 29-Jul-2015
 Select one pilot area / Line for introducing 10 min Line 29-Jun-2015 29-Jul-2015
meeting with inputs from Trainer
 Decide place, time, participants for 10 min Line meeting 29-Jun-2015 29-Jun-2015
and who should conduct the meeting
 Review performance and results of 10 min Line meeting 29-Jun-2015 29-Jun-2015

4) Start 5S through Employee participation & Workplace cooperation

 Study Plant Layout Map 29-Jun-2015 3-Jul-2015

 Divide Plant in to zones for 5S implementation 3-Jul-2015 3-Jul-2015
 Identify each zone by some name 3_-Jul-2015 3-Jul-2015
 Decide Pilot zone for starting 5S implementation 29-Jun-2015 29-Jun-2015
 Provide Training on 5S 3-Jun-2015 3-Jun-2015
 Take photographs as Base Line (Before) photographs of 29-Jun-2015 29-Jun-2015
Pilot zone
 Implement 1S 7-Jul-2015 17-Jul-2015
 Review progress 7-Jul-2015 24-Jul-2015

34
7.2.1GREEN CHANNEL CONCEPT SELLING AT M/S SOLCON

In Green Channel Concept Selling Thermax convey to vendor about Green Channel
activity. Thermax explain the concept in detail. In that they explain – What are the
benefits of vendor and Thermax, how vendor can increase their productivity, reduce
the wastages, reduce the manufacturing cost etc.

Green Channel is a direct channel by which vendor can supply items directly to
Thermax shop/store for ultimate use where inspection is skipped.

Green Channel Vendor is a vendor who ensures customer satisfaction by

manufacturing and supplying zero defect quality items at desired level of service
continuously. Also does continual improvements and ensures proper process control
to reduce variation in the process.

GC Concept Sharing dated 19-Jun-2015 at Factory

35
 GC sharing dated 24-Jun-2015 at
Pune office

Purpose:- To understand the concept and involvement of Vendor with active participation.

36
 7.2.2 ESTABLISH FUNCTIONAL EIT TEAM

Mr. M. H. Mistry
General Manager

Mr. S.M.Alate
Works Manager
Mr.S.D.Shirke
Quality Engg

Mr. M.D.Tupe Mr. S.R. More

Store Asst Engineer

Mr. R.V.Saikar
Engineer

Schedule of EIT Meeting

Schedule Day Time

Once in a week Wednesday 9.30-10.00Am

37
 7.2.3Start 10 minutes line meeting

Purpose: To explain the process to all shop floor workers to improve the
daily work operations.

38
 7.2.4AREA OF IMPROVEMENT

Purpose: To Identifying the Wastage at the M/s Solcon Engineers for the
area improvement.Finding the wastage area and scrap aera.

39
 7.2.4AREA OF IMPROVEMENT

Purpose: To Identifying the Wastage at the M/s Solcon Engineers for the
area improvement.

40
 7.4.STATISTIC

Space utilization for production

Identify the waste and scrap and inventory product laying on the shop flower
due to this maximum unproductive space utilization.
Un utilization of productive space due to over inventory and un allocated
space & sequencing of operations causing only 65% productive space
utilization & 35 % occupancy due to over inventory.

Total space
80%

60%

Unproductive Space
40%
utilization

20% Productive Space

utilization
0%
1-Apr-15
1-May-15
1-Jun-15

Total Space

35% Average Unproductive

Space Utilization
Average Productive Space
65%

41
 7.6.Zero Level Mapping

Divide Plant in to zones for 5S implementation

ZONE-1 Machine Shop

ZONE-2 Shop floor

42
 ZONE-3 Scrap Area

ZONE-4 Store Room

Purpose :- Allocating the zone wise area to implement the 5S method at

selected zone. abovephotograph shows the scrap area and store Room.

43
 ZONE-5 Finish Good

ZONE-6 RM Storage

Purpose:-To know and identify the existing system are following by vendor so that
gap can be identified and improvement will get done by vendor accordingly

44
 7.7. DATA ANYALYSIS

7.7.1. IMPLEMENTATION OF “5S” AT SELECTED ZONE

1. SEIRI = Sorting
Meaning: Distinguish between Target Outcome
necessary and unnecessary items and Uncluttered workplace.
eliminate the unnecessary items

Action Steps Resources

1. Identify a 5S-project area and  Camera for “before” and “after”
take "before" pictures pictures
2. Review sorting criteria  Computer to stored record
3. Take "after" pictures
4. After target time, move Some companies create a central storage
unclaimed items to the central area for 5S supplies and designate a 5S
red tag area coordinator to manage supply stock
Progress Check
• Team clear on workplace boundaries
• Sorting criteria established (e.g.,frequency of use; actual quantity needed-no
buffer)
• Time allocated for Sorting is clearly defined (e.g.,one hour)
• "Before" pictures taken (remember camera angles so that pictures are
consistent)
• Plans in place for items to be moved to central red tag area after target number
of days
• "After" pictures taken

Tips
• Go overboard on communication. Make sure management and employees in the
target area are notified, when the red tagging will occur, and so forth.
• Remove anything from the core work area that's not used at least weekly.
• Eliminate waste by minimizing the following:
- Inventory: raw materials,parts,in-process inventory,and products.
- Equipment:machines,jigs,tools,carts,desks,chairs,dies,vehicles,fixtures,etc.
- Space:floor area in the core work area storage racks,totes,bins,shelving,etc.
• Don't remove anything without the local work group's approval. Zealous 5S'ers can
undermine support by barging ahead insensitively. It‟s better to compromise on some
things than to jeopardize the 5S mission. However, be persuasive when appropriate,
when something is clearly a source of waste or is used infrequent

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 Activity:

-Establish criteria for eliminating unwanted items

- Eliminate unwanted items either by disposing them or by relocating them.

Success Indicator: Area saved or percentage of space availably

Before After

Before After

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 2. SEITION = Systematic Arrangement

Meaning: To determine type of storage Target Outcome

and layout that will ensure easy accessibility A workplace is that visually instructive
for everyone and is the source of minimal waste and
human errors..
Action Steps Resources
• Create a current state workplace  Flip charts for creating current and
diagram. future state diagrams
• Team shares insights gained  . Camera
during S1 & S2  Stakeholders(i.e.
• Evaluate current workplace . Production,maintenance,safety) to
• Create a future state workplace consider proposed changes
diagram .
• Get approval for change from
stakeholders
Progress Check
• Insights gained during S1 and S2 shared among team members
• Improvement opportunities listed,discussed,and prioritized
• Waste reduction ideas (e.g. Excess motion,material handling,etc.)
• Error reduction ideas (e.g. Checklists, visual instructions,or color coding)
• Ideas for making the workplace more visually instructive
• Ideas to overcome challenges and problems identified by stakeholders
• Target benefits of proposed changes clearly defined
• Future state workplace diagram drawn
• "Before" pictures taken
• Approval from stakeholders obtained

Tips

• Sketch ideas on flipchart or paper to build understanding and evaluate them.

• Cellular workflow has many benefits.Consider it if the workplace is not currently
organized that way.
• Revisit the workplace to evaluate the viability of proposed changes.
• Involve stakeholders (immediate work area and others) in thinking through changes.
• Be sensitive to the concerns and reservations of stakeholders; they know the area
best.
• Quantify the impact of the changes.

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 Activity:

- Proper arrangement for storage

- Creating place for everything and putting everything in its place

Success Indicator

- Time saved in searching

- Time saved in material handling

Allocation of Spaces:-

Before After

Before After

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 Preparation RM storage Rack

Paint Rack Machine Scrap

Purpose:-preparation of RM storage rack and maintaining the proper

arrangement for the pain and machine scrap.

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3)SEISO = Cleaning
Meaning :-Seiso Target Outcome
Remove dirt and debris, inspect A clean workplace - one that shines,
equipment and eliminate sources of and that minimizes sources of
contamination contamination.
Action Steps Resources
1.Define "clean" 1. Cleaning supplies such as
2.Get cleaning supplies brooms, dust pans, rags,
3.Take "before" pictures degreasers, and floor cleaner.
4.Clean the work area 2. Personal protective equipment
5.Fix small imperfections such as gloves and eye
6.Identify contamination protection. Do not wear
sources 7.Take "after" jewelry that can get caught in
pictures the equipment.
Progress Check
• Team has established their definition for "clean" in the target workplace
• Housekeeping staff consulted about cleaning agents
• Personal Protective Equipment (eg.,gloves, safety glasses) distributed
• Equipment shutdown or locked out to prevent safety risks
• Potential safety risks (e.g., metal shavings, sharp edges) identified
before cleaning
• "Before" pictures taken (remember camera angles so that pictures are
consistent)
• Cleaning tasks completed
• "After" pictures taken
• Observations shared among team members about inspection activity
Tips
• Identify target areas for cleaning.
• Consider doing the initial Shine process in waves. Do a first pass that
addresses the biggest challenges. Use additional passes to get
successively better.
• Remember that an important part of cleaning is inspection. As you get
the work area clean, look for sources of potential problems and
contamination.
• Once dirt, dust, grime and debris have been eliminated, consider
painting surfaces or sealing them with a protective coating. You‟ll be
amazed by the visible difference.
• How will cleanliness be sustained when the initial 5S project is
complete? Record key cleaning points and recommendations as you're
wrapping up the Shine process. The information will come in handy in
S4-Standardize.

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 Activity: - Keep workplace spotlessly clean

- Inspection while cleaning

- Finding minor problems with cleaning inspection

Success Indicator:

- Reduction in machine down time

- Reduction in no. of accidents

Housekeeping, Scrap Removed

Before After

Before After

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 4. SEIKETSU = Standardization

Meaning: Setting up standards / Norms for a Target Outcome

neat, clean, workplace and details of how toDeveloped
maintain the norm (Procedure)
Action Steps
 Brainstorm ideas for making the 5S
changes standard operating procedure
 Innovative visual management
 Color coding
 Early detection of problem and early
action
procedures,checklists,and
other mechanisms established to maintain
a work environment that is visually
instructive,has minimal waste and human
error, and is clean, and organized.
Resources
 Safety instruction
 Color codes
 Computers to maintain the
document

Progress Check
• Ideas generated for establishing changes as standard operating procedure
• Input solicited from those who create and maintain plant documentation
• Going on Documentation created or updated,for example:
Workplace diagrams
• Flowcharts
• Procedures
• Work instructions
• Job aids
• Miscellaneous visual aids
• Information and/or training provided to stakeholders to assure understanding

Tips

• Network with others engaged in the same activity.Collaborate to establish common

approaches for creating documentation,visual aids,etc.
• Tap your company's graphics staff or people with strong computer skills to help with
visual aids.Provide them with a rough sketch or an example from a technical manual or
catalog.
• If your company is an ISO companybe sure to involve your ISO coordinator to assure
compliance with ISO requirements for postings and documentation.
• Having an organized facility marking program (standards for markings,color-
coding,etc.) is integral to 5S success. Otherwise,each 5S team does its own thing and
the visible effect is a haphazard approach that could cause problems for
everyone.Consult your Bradyrepresentative for guidance about an organized facility
marking program

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Activity: - Innovative visual management

- Color coding

- Early detection of problem and early action

Success Indicator:

-Increase in 5S indicator

Safety And Work instruction Display

Purpose:

For some critical processes precautions are needed.

If new worker joins the factory, he should aware of the processes and safety
precautions related to it.

Workers in factory should always aware about safety, machine maintenance, and
housekeeping.

Quality policy of the factory is important for quality assurance.

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5. SHITSUKE = Self Discipline

Meaning: Every one sticks to the Target Outcome

rule and makes it a habit
 Action Steps
 Monitor processes established
during S4 Standardize
 Expand 5S efforts to other work
areas
 Evaluate 5S effectiveness and
continuously improve
 Participation of everyone in
developing good habits
 Regular audits and aiming for
higher level
A workplace that automatically restores
order, regulates activity, and continuously
improves.
Resources
 Management audit forms
 Resources for communication and
recognizing successes
(newsletters, displays, awards)
 Presentation tools for sharing best
practices with other work areas
 Management commitment and
focus on maintaining the new
standards

Progress Check
 Sustain methods clearly defined, with responsibilities and target dates
identified
 Sustain actions implemented, for example:
5S teams benchmark with each other and share ideas
5S teams present projected results within the company and to others
5S team results published in company communications
5S teams visit other companies to get new ideas
 Company leaders conduct 5S audits to see accomplishments and opportunities
 Daily housekeeping after completion of work
 Ideas generated for continuously improving the company's 5S approach

Tips
 Establish a calendar for sustaining activities and stick to it.Make it part of the
company's operating discipline.
 Involve employees in sustaining 5S improvements.Engage them in evaluating
areas outside their workplace, providing support for other workplaces,and in
visiting other companies that excel.
 Establish a 5S resource center to provide 5S supplies for teams so that they
can readily sustain and continuously improve their 5S results.
 An active management champion and the support of all managers is vital to 5S
success

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Activity - Participation of everyone in developing good habits

- Regular audits and aiming for higher level

Success Indicator:

-High employee morale

-Involvement of all people

 Regular housekeeping:

BENEFITS of 5 „S‟:-

 Vendor Up-gradation is done.

 Quality improvement in the processes and the parts
 Time saving at the shop floor
 Less material handling
 Ensures that company moves one step ahead towards operational excellence.

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TargetOutcomes and Benefits

1. Reduce non-value adding activity

2. Reduce mistakes from employees and suppliers
3. Reduce time for employee orientation and training
4. Reduce search time in navigating the facility and locating tools, parts and
supplies
5. Reduce parts stored in inventory, and associated inventory carrying costs
6. Reduce unnecessary human motion and transportation of goods
7. Improve floor space utilization
8. Improve employee safety and morale
9. Improve product quality
10. Extend equipment life through more frequent cleaning and inspection

5S produces measurable benefits. One of the surest ways to identify these

benefits is to establish and track specific metrics .For example,measure the
time required to locate items in the workplace before 5S and then measure
thetime required after the workspace has been improved. Longer term benefits
can also be measured by monitoring the amount of workplace injuries reported
after 5S has been implemented. Not only may workplace injuries decrease, but
training costs may,tooIt is easier and faster to train employees in a work area
that is orderly and well marked.

Another way to measure 5S benefits in the workplace is to take

pictures.Pictures are very effective at visually highlighting the improved
appearance and order in the workplaceConcrete measurements are a
complement to the pictures,fueling the momentum needed to sustain 5S.

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7.7.2.Thermax Head Of Department visit at Vendor Place

Purpose: - Review by Vendor Top management and concern head of the department to
ensure the improvement at vendor workplace

Review of workshop.

Review on:

 Does the vendor understand the 10 step- methodology?

 Does the vendor have dedicated QC person?

 Does the vendor are willingness to skip the inspection at his place?

 Does the vendor have procedure to sustain the Green channel principle guidelines?

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 Chapter 8
Finding , Conclusion , Suggestion

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 CHAPTER 8

FINDING, CONCLUSION and SUGGESTIONS

7.1 FINDINGS
1) Space release

Sr no Activity Before After Star Date Planned Actual

End Date End Date

1 Total 65% 80% 24-Jun- 17-Jul- 24-Jul-2015

Space 2015 2015
release

Space Release

20%
available space for
production
available space for storage

80%

Interpretation: - Total space is released before implementation of 5S is 65% and

Space is released after implement of 5Sis 80%. And 80% space is available for the
production and 20% is for the storage.

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 2) Searching Time Reeducation

Sr no Activity Time Required Time Required

before GC After GC
1 Tools Tackle 2hr 10 min
2 Process material 1hr 5min

3 Usable scrap 3hr 30 min

Improve

 15% space released and due to Productivity improved from 4 Unit per year to
5 Unit per year.
 Quality of the product.
 Process reliability
 On Time Performance
 Employee Moral due to release of space, training given to the workmen,
involvement of workmen in transformation process and customer satisfaction
 Built up team spirit due to worker participation in brain storming and idea
generation
 Profitability and efficiency by eliminating wastage in the process.
 Safety

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 8.2 CONCLUSION

This training gives the opportunity to learn practical aspects of engineering. Whatever
learnt through the syllabus up till now, that able to actually see it and have an
interface with the vendors and management people. got the opportunity to have an
actual interaction with hardcore professionals Thermax people , supervisors, workers
and many other people and also learned the key to healthy & effective professional
communication.

Thermax, being a heavy engineering company, welding is a key process in fabrication

of boilers and chillers. Were learned the type of boiler and chiller‟s working in the
VDM department .ie vendor development management were studied the how to
developed the vendors for their long terms process.

The projects assigned to is Green Channel development at the vendor sides helped to
apply technical fundamentals &gave a practical insight into the vendors as well as
factory activities. It developed my ability to have an innovative approach which
brought variety and depth in my knowledge. Also learned the basics of the Vendor
management.Learned how to make scheduling and plan the activities to ensure timely
completion.

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 8.3 SUGGESTIONS:

 Solcon Industries. Should looks seriously towards the improvements.

 It should carry out 5S meetings regularly in the organization.
 Vendors should use Proper Containers to put the tools, jobs, inspection.
 Vendors should have to provide necessary material handling equipments.
 Make the workforce trained about the safety handling of all the kinds of
mechanical components.
 Vendors should have to look towards automation. Maintain and update the
record of receipts and issue records in both softcopy & hardcopy.
 If the vendors uses automation & works on proper management they can
increase their production by 20-25% or they can reduces their night shift
 Vendors have to consider to reduces there outsourcing by adopting wirecut
(key way) machinery to avail more profit & to reduce transportation cost.

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 Chapter 9

Bibliography

63
 CHAPTER 9

BIBLIOGRAPHY:
BOOKS:

Arnold Tony J.R, Chapman Stephen N., Ramakrishna R.V. (2003), “Introduction to
Materials Management”, Fifth Edition. Pearson Publications, pp. 219-227

Jhamb L.C. (2005), “Inventory Management”, 11th Edition, Everest publishing house
pp.57-63

Korgaonkar M. G. (2000), “Just in Time Manufacturing” Macmillan Publishers India

Ltd, pp. 24-44

WEBILOGRAPHY:
 www.thermaxindia.com/about us (accessed on 27 July 2015 at 3.20 PM)

 http://www.purchasing-procurement-center.com/abc-analysis.html(accessed
on 07 June 2015 at 4.00 PM)
 http://www.inventorymanagement.com-centre for inventory
(Accessed on Tuesday, 31 May 2015 at 6.27 AM)
 www.google.com( best searching web side )

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