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six sigmaTRANSCRIPT
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 PROFILEENGINEERING 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.
Sales Update - from2014 to2015
V46 Induct ManufoldProduction
Sales Domestic
Sales Exports
UTD20 Induct ManufoldProduction
Sales Domestic
Sales Exports
ScuttProduction
Sales Domestic
Sales Exports
TotalProduction
Sales Domestic
Sales Exports
Apr-2014
1497
596
36
1369
995
99
90
24
0
2956
1615
135
May-2014
941
599
108
1659
1044
150
57
54
22
2657
1697
280
Jun-2014
578
1016
130
1421
2412
277
78
50
81
2077
3478
488
Jul-2014
1178
974
122
2432
2516
362
65
70
21
3675
3560
505
Aug-2014
1573
1281
216
3024
2880
323
88
72
12
4685
4233
551
Sep-2014
1720
1392
204
3688
3367
402
69
50
33
5477
4809
639
Oct-2014
1842
1451
116
4093
3400
273
76
83
10
6011
4934
399
Nov-2014
2141
1491
192
4129
2698
230
81
48
27
6351
4237
449
Dec-2014
2766
2120
258
4141
3316
298
142
97
21
7049
5533
577
Jan-2015
1550
1601
103
5140
5777
308
158
82
0
6848
7460
411
Feb-2015
1711
1621
310
5627
5364
420
102
107
47
7440
7092
777
Mar-2015
2034
2263
281
7293
6959
475
120
77
12
9447
9299
768
YTD
19531
16405
2076
44016
40728
3617
1126
814
286
64673
57947
5979
Code of Conduct for Board members and the Senior ManagementMembers 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 purposei) Shall adopt total transparency in their dealings with the Companyii) 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.
DividendDividend 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.ListingThe 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 GovernanceThe 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 KAIZENThree 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 processing3. Standardization.GEMBA MISSION: N7i+1New 7 initiatives and added one are: 1. Increase in the number of GEMBA2. 5s [SEIRI,SEITON,SEISO.SEIKETSU,SHITSUKE]3. EEI (Effort and Ergonomic index)4. CMI (Cost management initiative)5. Inventory Initiative6. Critical machine uptime7. Quality8. 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 SpecificationsPropertyValueNumber of cylinders6Engine power output (h.p.)300Cylinder bore (mm)150Cylinder stroke (mm)150Weight (kg)667Length (mm)874Width (mm)1150Height (mm)742
V46 Induct Manufold
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 834 mm Width 1150 mm Height 757 mm
3. LITERATURE REVIEW3.1 SIX SIGMAThe 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 withWhich 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 approachAs 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 resourcesSix 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 approachIn 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.