OPERATION KICKSTART

BAJAJ AUTO

GIV EN BY-
OUR H ON ’ BLE TEACH ER
PROF. P N SIN GH
 PRESENTED BY -
GROUP LEADER


 ALOK SINGH YADAV



 MEMBERS


 ARUN KUMAR YADAV

 SHAILENDRA PRAJAPATI
 ABHISHEK PAL

 TARUN SHARMA

 TEAM

 CALLENGE FIGHTER
Contents :-
1- What is TPM
2 - History of TPM
3 - Implementation
4 - Why TPM
5 - Development of TPM
6 - TQM
7 - 6 Sigma
8 - Bajaj case study
9 - How TPM helped
10- TPM Kick - off at Bajaj Auto
11 - Why TPM for Chakan plant
12 - Company Profile

WHAT IS TPM
 Total Productive Maintenance is a new way of
looking at maintenance, or conversely, a reversion
to old ways but on a mass scale. This
automaintenance ensures appropriate and
effective efforts are expended since the machine
is wholly the domain of one person or team. TPM
 is a critical adjunct to lean manufacturing. If
machine uptime is not predictable and if 
process capability is not sustained, the process
must keep extra stocks to buffer against this
uncertainty and flow through the process will be
interrupted.. One way to think of TPM is
"deterioration prevention" and "maintenance
reduction", not fixing machines. Its motto is "zero
error, zero work-related accident, and zero loss."

HISTORY OF TPM
 TPM is a Japanese idea that can be traced back to
1951 when preventive maintenance was
introduced into Japan from the USA. Nippondenso,
part of Toyota, was the first company in Japan to
introduce plant wide preventive maintenance in
1960.. So the management decided that the
routine maintenance of equipment would now be
carried out by the operators themselves. ( This is
Autonomous maintenance, one of the features of
TPM ). The maintenance group then focussed only
on 'maintenance' works for upgrades.
 The maintenance group performed equipment
modification that would improve its reliability. The
aim of productive maintenance was to maximize
plant and equipment effectiveness to achieve the
optimum life cycle cost of production equipment.
IMPLIMENTATION
 TPM has five goals 
 TPM identifies the 6 major sources of losses
(types of waste) (Muda) and then works
systematically to eliminate them by
making improvements (Kaizen). TPM has 8
pillars of activity each being set to achieve
the target towards “zero” concept.
 TPM Success Measurement - A set of
performance metrics which is considered
to fit well in a Lean/TPM environment is 
Overall Equipment Effectiveness, or OEE.

Why TPM ?
 TPM was introduced to achieve the following
objectives. The important ones are listed
below.
 Avoid wastage in a quickly changing economic
environment.
 Producing goods without reducing product
quality.
 Reduce cost.
 Produce a low batch quantity at the earliest
possible time.
 Goods send to the customers must be non
defective.

GROWTH OF TPM
How the knowledge of TPM
increases
TPM award winning co . region
wise
Region wise growth
TQM
 TQM is composed of three paradigms:
 Total: Involving the entire organization, supply
 chain, and/or product life cycle
 Quality: With its usual definitions, with all its
 complexities 
 Management: The system of managing with steps like 
Plan, Organize, Control, Lead, Staff, provisioning and 
organizing
 As defined by the 
International Organization for Standardization (ISO):
 "TQM is a management approach for an organization,
centered on quality, based on the participation of all its
members and aiming at long-term success through
customer satisfaction, and benefits to all members of
the organization and to society." ISO 8402:1994
TQM MODEL
6 SIGMA
 Six Sigma is a business management strategy,
originally developed by Motorola, that today
enjoys widespread application in many sectors
of industry.
 Six Sigma seeks to identify and remove the
causes of defects and errors in manufacturing
 and business processes.  It uses a set of 
quality management methods, including 
statistical methods, and creates a special
infrastructure of people within the
organization ("Black Belts" etc.) who are
experts in these methods. Each Six Sigma
project carried out within an organization
follows a defined sequence of steps and has
quantified financial targets (cost reduction or
profit increase).

Sigma levels
 Taking the 1.5 sigma shift into account, short-
term sigma levels correspond to the following
long-term DPMO values (one-sided):
 One Sigma = 690,000 DPMO = 31% efficiency
 Two Sigma = 308,000 DPMO = 69.2% efficiency
 Three Sigma = 66,800 DPMO = 93.32%
efficiency
 Four Sigma = 6,210 DPMO = 99.379% efficiency
 Five Sigma = 230 DPMO = 99.977% efficiency
 Six Sigma = 3.4 DPMO = 99.9997% efficiency
Bajaj case study
Bajaj was merely being courteous, but
Yamaguchi had a point: business was
bad. For the country’s largest
manufacturer of two and tree wheelers,
operating profit margins had fallen from
17.70 percent in 1998 – 99 to 14.98
percent in 1999- 2000. scooter sales,
which accounted for over half the
company’s sales, were sleeping from an
average of 54,000 a month in 1998- 99 to
48,000 in 1999- 2000
Yamaguchi’s was the beginning of Bajaj’s
efforts to try and set things right. The
principal crisis was the classic result of
monopolist’s inability to adapt to
changing market condition. In the early-
to-mid 1990s, Bajaj auto had been the
unchallenged leader in scooters with a 74
% share.
This wasn't the problem in 1999- - it
was the change in the nature of the two-
wheeler market from scooters to
motorcycles that was . From less than a
quarter in 1994—95,the motorcycle
market accounted for a little over half
the market by 2000– 2001.”we failed to
make the transformation from traditional
scooters to motorcycles, when we
should have in the late – 1980s,” Bajaj
recalls.
In 1999—2000, the annual capacity of
Bajaj auto’s main plant at Akurdi (near
Pune) which manufactured was one
million units and the Waluj plant (near
Aurangabad) was 1.14 million unit of
both two—and three—wheelers. Till
than Bajaj’s only attempt at motorcycle
had been the Kawasaki bike
manufactured at Walus which had not
made a significance impact with sales
of less than 1.5 lakh motorcycle till
1997and market share of 16 percent.
If Bajaj’s business strategy had to
hinge on motorcycles, what had to
change was the production
strategy . Says Bajaj,” Manufacturing
incapability was the biggest reason
that let us down when we tried to
make motorcycle or technically—
advanced scooters.”
One way this manifested it self was high
and expensive rejection rate. At that time,
the company had a 2 to 3 percent rejection
rate at 30,000 problems per million (PPM)
parts produced.
Wajul was the backward area with largely
unskilled or poorly—qualified labour, so
quality was a major casualty. Admits
Bajaj ,”It was the classic manufacturing
mistake in terms of approach and strategy.
Consequently, consumers shifted to Hero
Honda, which was one—tenth our size in the
early 1990s.
Of course the company had tried taking
manufacturing—driven initiatives in the
early 1990s(see box: The correction drive).
But as Bajaj points out,” Till 2000, the
company’s manufacturing strategy was
mainly in corrective mode
HOW TPM HELPED
At the press shop:
 Rejection during pressing and
breakdown on press machines dropped
to zero. Before TPM, the average loss in
minutes per machine was 1821 minutes
per month.

 Before TPM, the occurrence rate of
cracks was 2.2 per cent. Post-TPM, it
went sown to zero.

 Material yield improvement (net raw
material per scooter) improved from 50
percent to 59 percent for two-stroke
scooter. There was a 15.09 percent
saving in material usage. The annual
saving was Rs 469 crore .
AT THE PAINT SHOP
 Breakdown amounted to a loss of 651
minutes per month. Post TPM, they
were reduced to 20 minutes per
month.

 Occurrence of defects was 3.5 per
cent. These were reduced to zero.

 A 25 per cent paint saving per
vehicle , which equalled Rs 172.10
lake a year, was achieved through
Kaize initiatives
 Bajaj Auto's growth in
market share for
motorcycles ( in numbers )
ear ended31March Market(nos) market growth BAL(nos) BALgrowth balance
market share

2002 2,861,375 40.7% 656,018 55.4% 22.9%

2003 3,757,125 31.3% 868,138 32.3% 23.1%
2004 4,316,777 14.9% 1,023,551 17.9% 23.7%
2005 5,217,996 20.9% 1,449,710 41.6% 27.8%
2006 6,200,749 18.8% 1,912,306 31.9% 30.8%
Impressive recent performance - The company posted a decent volume
growth
in July and August and has hit the 200,000 units per month mark in August. The
downtrend had bottomed out somewhere in April and the company has shown
some resilience thereafter. Factors responsible for impressive results are
favourable sales-mix, rising exports and the hike in prices which lead to improved
 Bajaj plants
Akurdi
Geared scooters, ungeared scooters,
CT100 and Discover
Waluj
Bajaj - Kawasaki range of motorcycles and
three-wheelers
Chakan Bajaj motorcycles - Pulsar and Discover
Pant
Nagar Bajaj motorcycles – Platina
TPM AT BAJAJ AUTO LTD .
Bajaj initiated TPM activities few years ago
at their manufacturing sites including their
latest plant at
 Chakan and further extended the concepts
to R&D and their Vendors. This article covers
the insight
 behind Bajaj's venture into the above areas.

Why TPM for Chakan plant

 Chakan is Bajaj Auto's third plant. Many

improvement initiatives were attempted here. It
was realised
 that none of these initiatives provided results on
every aspect of excellence in operations. Each
initiative
 had a very narrow focus and tended to neglect
other areas of operations. Secondly, all these
initiatives
 tended to have a project orientation and
depended too much on the ability and the focus of
the driver.
 We wanted to implement a system which was
system and goal driven and which looked at
every
 parameter of operations to ensure workshop
excellence by participation of all employees.
Based on our
 experience of TPM at the Akurdi and Waluj
plants, we found TPM is highly structured. It
involves
 everyone, from the top man to the operator,
in the organisation. The measurements under P,
Q, C, D, S,
 M force the operations to look at every
aspect of work to bring about excellence.
 Result of TPM usses
 Manager model cell achievement at BAL -Chakan Plant
 Parameter Criterian Bench Mark Result Achievement


 Parameter Criterian Bench Mark Result Achievement




 P - Production & Out put per hour 40 60 1.5 times increased



 Productivity Out put per man 64 96 1.5 times increased



 Q - Quality process Defect Phenomenon 4 0 100 % down


 Field Defect Phenomenon. 0 0 Sustained
Zero defect.
 C – Cost Conversion cost / comp 30% down as compared
to BM cost


 M - Morale Kaizen per month 5 10 2 times increased.



 .
TPM Kick - off at Bajaj Auto's
Chakan Plant
 After Bajaj Auto's Akurdi and Waluj plants , it was the turn of
the youngest Chakan Plant near Pune, to
 commit itself to the TPM philosophy. The journey for
implementing TPM had started during Nov 2003
 and on 8th Dec 2004 the plant reached the milestone of
Kick-off.
 The TPM policy of Bajaj Auto declares TPM, “as a means
of creating a safe and participative work
 environment in which all employees target towards
elimination of losses in order to continuously
 enhance the capacity, flexibility, reliability and
capability of its process, leading to higher employee

 morale and greater organisational profitability.”
Before kicking off the TPM activity, the plant had put
in
 one year of committed efforts to be in a position
from where it can now go full steam to meet the TPM
 policy aspirations. These efforts included
practising TPM in model cells, creating awareness
amongst
 employees, creating a formal TPM organisation,
setting up of expert sub-committees to implement
 eight pillars of TPM. Present on the occasion were
Mr. SueoYamaguchi, TPM guru & consultant for
 BAL, Mr. Rajiv Bajaj Joint Managing Director ,
eminent business associates and employees.

Award for TPM Excellence - First
Category
 Bajaj Auto Limited, Akurdi Plant, Pune
 Company : Bajaj Auto Limited
 Factory : Bajaj Auto ltd. – Akurdi Plant
 Product : Motorized 2 Wheelers
 (Geared & Un-geared Scooters, Motorcycles)


MR.Arvind gupt a
GM (Akd) – unit head
Company Profile :-
 Expectation from TPM:
 Akurdi plant of Bajaj Auto ltd., since it’s inception in
1960 was mainly making Scooters. Post liberalization,
 Indian 2 wheeler industry witnessed stiff
competition with many multinationals entering with
high performance
 products. BAL’s Akurdi plant, which was set up
basically to manufacture 2 wheelers of old design in
large
 volumes & less variety was facing difficulty in
meeting customer’s expectations. Consequently, the
bottom line
 was on the verge of getting badly hitted. To make
this situation turnaround, BAL –Akurdi plant adopted
TPM.
 .
 Following aims were set to be achieved
through TPM methodology –
 Processes :- Flexible to meet changing
demands.
 Equipment :- High level of process capability
& reliability
 People :- With sense of ownership.
 Quality :- Customer focused approach.
 Cost :- Always lower than competition.
 BAL – Akurdi Plant has adopted TPM as “The
Prime Mover towards excellence”. Following
milestones have
 been achieved so far & the journey is
continuing
THANK YOU