UNDERTAKEN AT
IMPERIAL AUTO INDUSTRIES LIMITED FARIDABAD(HARYANA)
KUREKSHETRA UNIVERSITY
Page : 1 of 51
Acknowledgement The successful realization of the project is an out growth of the consolidated effort of the people from desperate fronts. So it·s only with their support and guidance, I could meet my goal. It is a proud privilege to acknowledge with deep sense of gratitude to Mr. Pawan Saharan (Development Head). I like to thank Mr. Manoj Batra (Manager- HR) who has given me the opportunity to do my summer training at Imperial Auto Industries Ltd. I am especially grateful to my guide Mr. L.M. Sharma (Plant Head) & Ravinder Wadhwa ( Engineer- HR) for providing me valuable inputs so as to complete my training successfully. successfully. I would also like to extend my thanks to all the Development & production Staff members who have been very helpful through out my training in supplying with all the necessary information. Lastly I would like to thank Ms. Imperial Auto Industries Ltd, for accepting me as a summer trainee in such an esteemed organization. AMIT MALIK ROLL NO. 3407333 S.D.I.T.M K .U .U Univers University ity Page : 2 of 51
Acknowledgement The successful realization of the project is an out growth of the consolidated effort of the people from desperate fronts. So it·s only with their support and guidance, I could meet my goal. It is a proud privilege to acknowledge with deep sense of gratitude to Mr. Pawan Saharan (Development Head). I like to thank Mr. Manoj Batra (Manager- HR) who has given me the opportunity to do my summer training at Imperial Auto Industries Ltd. I am especially grateful to my guide Mr. L.M. Sharma (Plant Head) & Ravinder Wadhwa ( Engineer- HR) for providing me valuable inputs so as to complete my training successfully. successfully. I would also like to extend my thanks to all the Development & production Staff members who have been very helpful through out my training in supplying with all the necessary information. Lastly I would like to thank Ms. Imperial Auto Industries Ltd, for accepting me as a summer trainee in such an esteemed organization. AMIT MALIK ROLL NO. 3407333 S.D.I.T.M K .U .U Univers University ity Page : 2 of 51
Preface
The following is a report of six weeks Summer Training at Imperial Auto Industries Ltd. done in partial fulfillment of my B.E course from S.D.I.T.M, K.U University. The summer training was completed at Imperial Auto Industries Ltd. under the guidance of Mr. Pawan saharan (Development Head). This training is a part of my four years course. During the stipulated time period my aim was to gain as much as knowledge and information possible and to be well familiar with the working conditi c onditions ons of the Organization. Organization. In this report also are the details of the project work allotted allotted to me. The training was to study the different processes used in the production of the final product. I also went to understand ERP software running in the company.
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IMPERIAL AUTO INDUSTRIES LIMITED DATE OF INCORPORATION
10TH 10TH MAY 1969
REGD. OFFICE
202, K AAUSAL AAUSAL BAZAR , 32-33, NEHRU NEHRU PLACE, LACE, NEW DELHI - 110019
MAIN FACTORY & OFFICE
OPPOSIT OPPOSITE E RAILW RAILWAY GOODS GOODS SHE SHED FARIDAB ARIDABAD - 121001
PLANT II
PLOT - 94, SECTO CTOR R - 25 FARIDAB ARIDABAD - 121001
PLANT III
SECTO CTOR R - 27C 27C FARIDAB ARIDABAD - 121001
PLANT IV
PLOT - 83, SECTO CTOR R - 25 FARIDAB ARIDABAD - 121001
PLANT V
13/6, Mathura oad thura R oad FARIDAB ARIDABAD - 121001
BRAKE HOSE PLANT
I-45, DLF DLF Ind Industr ial Area , FARIDAB ARIDABAD
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PRODUCT PORTFOLIO HIGH PRESSURE FUEL INJECTION LINES
FUEL I NJECTI NJECTION ON CLUSTE CLUSTER P R PIPE SETS FOR FOR MULTI MULTI CYLI ND NDER ENG R ENGII NES NES
RAILW RAILWAY DIE DIESEL ENGI ENGI NES NES, HEAVY TA NK ETC. ETC.
HYDRAULIC HYDRAULIC HIGH PRESSURE COMPONENTS
HYDRAULIC HIG HIGH PR ESSUR E HOSE ASSE ASSEMBLY
SEAAMLE AAMLESS TUBE TUBE ASSYS FOR FOR HI HIG GH PR ESSUR E MA NI NIFOLDS FOLDS A ND ND HYDRAULIC APPLICATI PPLICATION ONS S
NYLON TUBES
FUEL SYSTE SYSTEMS
BRAKE RAKE BOOST BOOSTE ER P R PIPES PES / LUB LUBRICATION RICATION PI PIPES PES
CLUTCH / VACCUM / LUB LUBRICATION RICATION PI PIPES PES
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BRAKE LINE & CLUTCH COMPONENTS
HYDRAULIC BRAKE HOSES
AIR BRAKE HOSES
CONNECTI NG LI NES
BRAKE TUBES
POWER STEARI NG HOSES
CLUTCH TUBES
AIR LI NES
FUEL LINE COMPONENTS
FUEL LI NES
FUEL R ETUR N LI NES
OVER FLOW LI NES, MA NIFOLDS (SPILL PIPES)
LONG LENGTH R OLLS OF FLEXIBLE HOSES WITH PVC CA NE
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TUBULAR COMPONENTS
EXHAUST PIPES / COMPONENTS
OIL , WATER & AIR DELIVERY PIPES
STRUCTURAL AUTOMOTIVE FABRICATED TUBES
FUEL TA NK NECK S
PIPES & HOSES FOR TA NK S , ARMOUR ED VEHICLES , ETC
COMPONENTS FOR AIR STARTI NG SYSTEMS
RUBBER PRODUCTS
HOSES WITHOUT END FITTI NGS
RADIATOR / BEND HOSES
FUEL HOSES AS PER GIVEN GEOMETRY MULTI LAYER ED HOSES - FK M , NBR , CSM
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MAIN BUSINESS GROUPS
MANUFACTURER OF :
AUTOMOTIVE STEEL TUBI NG BRAKE TUBES FUEL TUBES FUEL I NJECTION TUBES RADIATOR TUBES FUEL I NLET PIPES OVER FLOW LI NES FABRICATED TUBE ASSY. CR OSS MEMBERS
FLEXIBLE HOSES FUEL HOSE ASSY. RADIATOR HOSES BRAKE HOSE ASSY. HYD. HIGH PR ESSUR E HOSE ASSY. VACCUM HOSE ASSY. AUTOMOTIVE FUEL SYSTEM
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CUSTOMERS
y
TATA MOTORS
y
MARUTI UDYOG LTD.
y
MAHI NDRA & MAHI NDRA
y
SWARAJ MAZDA LTD.
y
BAJAJ VEHICLES
y
BAJAJ AUTO
y
HER O HONDA
y
HYU NDAI
y
JCB I NDIA
y
PU NJAB TRACTORS LTD.
y
EICHER MOTORS
y
PIAGGIO VEHICLES
y
L & T JOH NDEER E
y
CUMMI NS I NDIA
y
K IRLOSK AR
y
ESCORTS I NDIA
y
ASHOK LEYLA ND
y
TAFE
y
HI NDUSTA N MOTORS
y
CUMMI NS, USA
y
JOH NDEER E, FRA NCE
y
GENERAL MOTORS, USA
y
TRIUMPH MOTORCYCLES
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PROCEDURE From a customer, an organization receives the requirement which is k nown as PURCHASE ORDER. The purchase order may be an open order for a year or an order for a specif ic time per iod. According to the order given by customer, schedule is raised on monthly/ for tnightly/ weekly/ daily basis. From Production depar t ment Bill of Mater ial (BOM) is obtained. BOM is the amount of raw mater ial required for a single piece of mater ial. With the help of BOM and Schedule the raw mater ial required is calculated. All these processes are done by Planning Depar tment.
Resource Planning Af ter this, the resources of the organization have to be planned for production of good quality mater ial. Nowadays
mostly
organizations
work
on
zero-inventor y-level
pr inci ple. But there is always a stock of raw mater ial with some standards like maximum stock, minimum stock, and buffer stock . The stock has to be checked on daily basis with the standards. If the stock is greater then the maximum stock, there will be no purchase. If stock + buffer stock is in between the maximum stock and minimum stock then also purchasing is not done otherwise mater ial has to be purchased. Purchasing is done Purchase Depar t ment. Before purchasing, it is seen that whether quotations are are required or not. If required then quotations are obtained from vendors and accordingly they are ordered for raw mater ial required. Page : 10 of 51
When vendor sends the mater ial, gate processing is done. First the par ticulars are checked. Check ing of mater ial according to schedule is done. If OK then only the mater ial goes for quantity check ing otherwise the concer ned person is contacted and corrections are done then and there. Af ter that par ticulars are rechecked. Similarly it is done for quantity check ing. Af ter that the quality of the mater ial is checked. If the mater ial is OK, mater ial is sent to store otherwise it is seen that whether mater ial is urgent or not. In case, it is seen that whether segregation or deviation or rework is possi ble with mater ial. If so, operation required, is done and send to store else send back .
Production Af ter planning all the resources, the raw mater ial is issued by store. Job cards are released according to schedule. The var ious production processes are applied. If some job work is required, there are some vendors who take the mater ial, do operations on that and retur n back . A record of mater ial is issued, is maintained. There is boundation on vendor to retur n the mater ial within 180 days otherwise there is loss of excise and new billing has to be done. One of the impor tant par ts of production is inspection. The mater ial produced has to undergo var ious tests. If it is not according to quality required, it is seen that mater ial is required in urgency if it is so; some deviation is done with permission of senior off icers. If not, mater ial is rejected and goes to scrap. The mater ial prepared is sent to excise store. Af ter production, mater ial has to be sent to customer . It is packed properly and sent by suitable
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means of transpor t. For each deliver y there is billing. It should be noted that dispatch is according to schedule or not.
Rejection from Customer Sometimes mater ial or a par t of mater ial is rejected by customer . For that par t of rejected mater ial MRV (Mater ial R etur n Voucher ) is prepared. That par t of rejected mater ial has to be replaced within 180 days (otherwise loss of excise and new billing).
Accounts Department There is an Accounts Depar tment where var ious accounting processes are done regarding the payments (from customer /to vendors). A bove explained processes are the impor tant components of the chain on which an organization r uns. However, it consists of var ious other impor tant depar t ments where other processes (essential for smooth r unning of organization) takes place e.g. Marketing Depar tment, R & D Depar tment, and System Depar tment etc.
Feedback From the customer, not only the order is received but also the feedback about the product is obtained. CCR (Customer Complaint) ± The complaint about the product may be received from customer . These are registered and ty pe of complaint is obser ved. According to the ty pe, QA (Quality Assurance) Depar t ment takes the action. For the improvement of product, organization keeps on work ing on that. This is done by the R & D Depar tment. Page : 12 of 51
EC N (Engineer ing Change Noting) ± Some changes in designs are done. According to those changes, samples are prepared and tested on parameters. If samples are not OK, amendments are done and again samples are prepared. Af ter that f irst lot is prepared. If the product is accepted by the customer, large scale production is done otherwise amendments are done in designs. Again sample is prepared and whole process is to be repeated.
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AUDIT SYSTEM
PROCESS AUDIT
VISUAL
( FREQ. - WEEKLY, MONTHLY )
DIMENSIONAL DESTRUCTIVE TEST
PRODUCT AUDIT LAYOUT
APPEARA NCE
( FREQ. - DAILY, WEEKLY, MONTHLY )
DIMENSIONAL SUR FACE TR EATMENT PER FORMA NCE
PRODUCT LAYOUT AUDIT
FULL DIMENSIONAL
( FREQ. - YEARLY )
FITMENT / FU NCTION PER FORMA NCE MATERIAL
PRODUCT TESTING & EVALUTION
DIMENSIONAL SUR FACE TR EATMENT PER FORMA NCE MECHA NICAL PR OPERTIES CLEA NLI NESS
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KEY QUALITY FUNCTIONS
PRODUCT QUALITY PLANNING
PRE PRODUCTION
FEASIBILITY STUDY & COMMITMENT
QUALITY PLANNING
PR OCESSES FLOW DIAGRAM FAILUR E MODE & EFFECT A NALYSIS PR OCESS PR OCESS CONTR OL PLA N PR OCESS CAPABILITY A NALYSIS GUAGE CALIBERATION A ND GUAGE R & R STUDY TOOL & FIXTUR E CONTR OL SUPPLIER SELECTION & APPR OVAL
PRODUCTION PROCESS
PART LEVEL CONTR OL PLA N
VALIDATION
PR ODUCTION PARTS APPR OVAL PR OCESS (PPAP) PR ODUCTION QUALIFICATION
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INSPECTION SYSTEM
INCOMING INSPECTION
I NITIAL SAMPLE EVALUATION R EGULAR SUPPLY I NSPECTION SUPPLIER QUALITY I NSPECTION
INPROCESS INSPECTION
I NITIAL SETUP APPR OVAL STAGE APPR OVAL ONLI NE TESTI NG LI NE R EJECTION A NALYSIS
SPC
CRITICAL PR OCESS CONTR OL CHARTI NG PR OCESS CAPABILITY STUDY
FINAL INSPECTION
FITMENT / FU NCTIONAL DIMENSIONAL VISUAL PACK I NG
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TYPES OF PIPES USED IN THE INDUSTRY
1) Bundy Tu be a) Tu be Dou ble Wall (TDW) b) Tu be Single Wall (TSW)
2) Electr ically R esistance Butt Welded Pi pe (ER W)
3) Cold Drawn Welded Pi pe (CDW)
4) Cold Drawn Seamless Pi pe (CDS)
5) High Pressure Pi pe
6) Stainless Steel Pi pe
Diameter of Pi pes used: 4 mm to 105 mm
Hose used for Brake Hose Pi pes: HS & LG Standard inter nal diameter of brake hose: 3.2 mm
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INTRODUCTION In the manufactur ing industr y, MR P (Mater ial R equirements Planning) became the f undamental concept of production management and control in the mid 1970s. At this stage BOM (Bill of Mater ials), which is purchase order
management
that
utilizes
par ts
list
management
and
par ts
development, was in the mainstream. And this concept (MR P) unfolded from order inventor y management of mater ials to plant and personnel planning and distr i bution planning, which in tur n became MR P-II (Manufactur ing R esource Planning). This incorporated f inancial accounting, human resource management f unctions, distr i bution management f unctions and management accounting f unctions. It came to globally cover all areas of enterpr ise mainstay business and eventually came to be called ERP.
What is ERP? Enterprise Resource Planning (ERP) covers the techniques and concepts employed for the integrated management of business as a whole, from the viewpoint of the effective use of management resources, to improve the efficiency of an enterprise. ERP packages are integrated (cover ing all business f unctions) sof tware packages that su ppor t the above ER P concepts. Or iginally, ER P packages were targeted at the manufactur ing industr y, and consisted mainly of f unctions for planning and managing core businesses such as sales management, production management, accounting and f inancial affairs, etc. However, in recent years, adaptation not only to the manufactur ing industr y, but also to diverse ty pes of industr y has become
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possi ble and the expansion of implementation and use has been progressing on a global level. ER P sof tware is designed to model and automate many of the basic processes of a company, from f inance to the shop floor, with the goal of integrating information across the company and eliminating complex, expensive links between computer systems that were never meant to talk to each other . ER P sof tware is a mirror image of the major business processes of an organization, such as customer order f ulf illment and manufactur ing. Its success depends u pon reach-a circumscr i bed ER P system isn¶t much better than the legacy system it replaces. In many cases, it is worse, because the old code at least was wr itten specif ically for the company and the task . ERP systems¶ set of generic processes, produce the dramatic improvements that they are capable of only, when used to connect parts of an organization and integrate its various processes seamlessly. When a warehouse in Noida enters a customer code, for example, the data flows automatically to others in the company who need to see it-to the f inance depar tment at the company headquar ters in Mumbai and to the manufactur ing plant in Chennai. The lure of information integration str uck a chord with CEOs and CFOs-ER P vendors¶ pr imar y targets-and sales of ER P took of in the early 1990s.
REASONS FOR THE GROWTH OF ERP MARKET There is no dou bt that the market for Enterpr ise R esource Planning (ER P) systems is in great demand. Industr y analysts are forecasting growth rates of more than 30% for at least the next f ive years. Why are so many companies replacing their key business systems? The answer is:
Page : 20 of 51
1. To enable improved business performance y
Cycle time reduction
y
Increased business agility
y
Inventor y reduction
y
Order f ulf illment improvement
2. To su ppor t business growth requirements y
y
New products/product lines, new customers Global
requirements
including
multi ple
languages and currencies 3. To provide flexi ble, integrated, real-time decision su ppor t y
Improve responsiveness across the organization
4. To eliminate limitation in legacy systems y
Centur y dating issues
y
Fragmentation of data and processing
y
Inflexi bility to change
y
Insu ppor table technologies
5. To take advantage of the untapped mid-market y
Increased f unctionality at a reasonable cost
y
Client ser ver/open systems technology
y
Ver tical market solutions
These are some of the reasons for the explosive growth rate of the ER P markets and the ER P vendors. As more and more companies are joining the race, the ER P vendors are shif ting their focus from big- For tune 1000- companies to different market segments (medium size companies, small companies, etc.). The f uture will see f ierce battle for market share and mergers and acquisitions for strategic and competitive advantage. The Page : 21 of 51
ultimate winner in this race will be the customer, who will get better products and better ser vice at affordable pr ices.
ADVANTAGES OF ERP Installing an ER P system has many advantages-both direct and indirect. The direct advantages include improved eff iciency, information integration for better decision mak ing, faster response time to customer quer ies, etc. The indirect benef its include better corporate image, improved customer goodwill, customer satisfaction, and so on. The following are some of the direct benef its of an ER P system:
1.
y
Business Integration
y
Flexi bility
y
Better Analysis and Planning Capabilities
y
Use of Latest Technologies
Business Integration
The f irst and most advantage lies in the promotion of integration. The reason why ER P packages are considered to be integrated is the automatic data u pdation that is possi ble among the related business components. Since conventional company information systems almost all were weak in terms of the communication and integration of information that transcended the different business f unctions. In the case of large companies in par ticular, the timing of system constr uction and directives differs for each product and depar tment/f unction and sometimes, they are disconnected. For this reason, it has become an obstacle in the shif t to new product and business Page : 22 of 51
classif ication. In the case of ER P packages, the data of related business f unctions is also automatically u pdated at the time a transaction occurs. For this reason, one is able to grasp business details in real time, and carr y out var ious ty pes of management decisions in a timely manner, based on that information.
2. Flexibility
The second advantage of ER P packages is their flexi bility. Different languages, currencies, accounting standards and so on can be covered in one system, and f unctions that comprehensively manage multi ple locations of a company can be packaged and implemented automatically. To cope with company globalization and system unif ication, this flexi bility is essential, and one can say that it has major advantages, not simply for development and maintenance, but also in terms of management.
3. Better Analysis and Planning Capabilities Yet another advantage is the boost to the planning f unctions. By enabling the comprehensive and unif ied management of related business and its data, it becomes possi ble to f ully utilize many ty pes of decision su ppor t systems and simulation f unctions. Fur thermore, since it becomes possi ble to carr y out, flexi bility and in real time, the f illing and analysis of data from a var iety of dimensions, one is able to give the decision makers the information they want; thus enabling them to make better and informed decisions.
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4. Use of Latest Technology The four th advantage is the utilization of the latest developments in Information Technology (IT). The ER P vendors were ver y quick to realize that in order to grow and to sustain that growth; they had to embrace the latest developments in the f ield of Information Technology. Therefore, they quickly adapted their systems to take advantage of the latest technologies like open systems, client/ser ver technology, Inter net/Intranet, CALS (Computer-Aided Acquisition and Logistics Su ppor t), electronic-commerce, etc. It is this quick adaptation to the latest changes in Information Technology that makes the flexi ble adaptation to changes in f uture business environments possi ble. It is this flexi bility that makes the incorporation of the latest technology possi ble dur ing system customization, maintenance and expansion phases. As has been stated above, ER P includes many of the f unctions that will be necessar y for f uture systems. However, under tak ing reforms to company str uctures and business processes, so as to enable the f ull use of these major features, is the greatest task for companies that will use them. It is necessar y to take note that casually proceeding with the implementation of ER P, merely for reasons of system reconstr uction or preparation for the year 2000, is likely to result in tur ning the above mentioned advantages and disadvantages.
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BUSINESS MODULES IN AN ERP PACKAGE Introduction What is a business? It is not just buildings, machiner y or money. Business is people-not only people who voluntar ily come together because they can do much more work ing together than they could work alone, but also people who do work on their own as entrepreneurs. Business, then can be def ined as the activities of individuals or grou ps that are involved in developing, producing and distr i buting the goods and ser vices needed to satisf y other people¶s needs. Business uses resources to produce goods and ser vices. These resources are land, labor and capital. These three resources become productive when combined in a rational way for some creative or gainf ul purpose. This is the f unction of the four th resource-entrepreneurshi p or management. Entrepreneurs or managers combine the resources like land, labor and capital in different ways to produce goods or ser vices. It is the f unction of the management to plan the effective and eff icient use of the resources available to the enterpr ise. The enterpr ise resource planning (ER P) systems help the management in mak ing the planning process more productive and eff icient. All ER P packages contain many modules. The number and features of the modules var ies with the ER P package. In the following we will see some of the most common modules available in almost all packages. They are Finance, Manufactur ing and Production Planning, Sales and Distr i bution, Plant Maintenance, Quality Management, Mater ials Management and so on. This is by no means a comprehensive list. Some packages will have a su bset Page : 25 of 51
of this and some will have more modules and/or features. For detailed information, you will have to consult the product literature of the specif ic ER P system. Computer ized systems existed for the different business modules even before the ER P era. But what makes ER P different and capable of producing dramatic results is the integration and automation of the var ious business f unctions. R ather than f unctioning in isolation cater ing to the needs of their own depar t ments, the different modules in an ER P system are integrated. They send and receive data across depar tmental barr iers. Another feature that improves productivity and reduces response and reaction times is the automation of the var ious procedures and tasks. Most of the tasks, which were done manually in the pre-ER P era, are now automated. A task which involved the coordination of two or three depar tments would take days in a non-ER P environment. However, with the procedure automation and module integration, the same task will be completed within minutes and that too just by an action initiated by a single person (which tr iggers a lot of other processes in many different modules).
Var ious different modules of ER P in business are: 1.
Finance This section provides an over view of the f inancial solutions in most of
the ER P packages. In today¶s business enterpr ise, you need to k now that your f inancial decisions are based on today¶s data, not numbers from records closed a month ago, or even a week ago. And you need to k now that this same µtoday¶s¶ data represents ever y segment of your organization¶s activities, whether your enterpr ise stretches across a room or around the
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globe. This is essential, because the most eff icient way to get your enterpr ise to where you want it tomorrow is to k now exactly where it is today. The f inance modules have following su bsystems: y
F inancial Accounting
y
I nvestment Management
y
C ontrolling
y
T reasury
y
2.
Enterprise C ontrolling
Production Manufacturers must respond quickly and effectively to customer
demands. While agility is desirable, agility without an effective enterpr ise manufactur ing system results in speed without purpose. The ver y hear t of an enterpr ise manufactur ing system centers on its integrated planning, business process and execution capabilities. Traditional Closed Loop MR P concepts have long heralded the impor tance of effective planning, business process understanding, and timely execution. Strategically, effective-planning results in improved inventor y tur ns, increased productivity and improved retur n on assets. Tactically, effective business processes provide improved customer satisfaction, reduced time to market and improved market share. Some of the major su bsystems of the manufactur ing module are: y
Material and C apacity Planning
y
S hop F loor C ontrol
y
Quality Management
y
y
JIT/ Repetitive Manufacturing C ost Management
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y
Engineering Data Management
y
Engineering C hange C ontrol
y
C onfiguration Management
y
S erialization /Lot C ontrol
y
T ooling
3. Human Resources Human resources management is an essential factor of any successf ul business. The competitive environment of the next millennium, with its economic and technological challenges, will effect the HR depar t ment in the same way it wills all the other areas of your enterpr ise. In shor t, HR managers must continually review and optimize their business processes. The HR modules of most ER P systems have a set of r ich features and will integrate seamlessly with the other modules and are thus, invaluable aids in improving productivity. They offer company-wide solutions for HR depar tments and make it possi ble for other depar tments to access specif ic employee data. Var ious su bsystems under this are: y
y
Personnel Management Organizational Management
y
Payroll Accounting
y
T ime Management
y
Personnel Development
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4. Plant Maintenance Plant Maintenance provides you with technical and business repor ts and var ious presentation options, according to the cr iter ia used: for example, organizational unit, location, execution per iod for the tasks, or system manufacturer . This information helps you to reduce the duration and cost of plant downtimes as a result of damage, and to recognize possi ble weak points within your technical system in good time. It also forms the basis for def ining an optimum maintenance strategy in the sense of ³Total Productive Maintenance´ (TPM) or r isk optimized maintenance. The major su bsystems of Plant Maintenance module are: y
Preventive maintenance control
y
Equipment tracking
y
C omponent tracking
y
Plant maintenance calibration tracking
y
Plant maintenance warranty claims tracking
5. Materials
Management
The Mater ials Management module optimizes all purchasing processes with workflow-dr iven processing f unctions, enables automated su pplier evaluation, lowers procurement and warehousing costs with accurate inventor y and warehouse management and integrates invoice ver if ication. The main modules of Mater ials Management are: y
Pre-Purchasing Activities
y
Purchasing
y
y
V endor Evaluation
I nventory Management
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y
6.
I nvoice V erification and Material I nspection
Quality Management The ISO 9000 ser ies and a host of standards def ine the f unctions of
Quality Management and the elements of a Quality Management system. The f unctions in the Quality Management module su ppor t the essential elements of such a system. The other integrated modules in the system complement this f unctionality. These standards require that Quality Management systems penetrate all processes within an organization. The task pr ior ities, according to the quality loop, shif t production to production planning and production development, to procurement, and sales and distr i bution, as well as into the entire usage phase. In the area of production, quality assurance is no longer viewed in terms of inspection and the elimination of defects alone. Instead, the production process itself becomes the focus of attention. The Quality Management module f ulf ills the following f unctions: y
Quality Planning
y
Quality I nspection
y
Quality C ontrol
7. Sales and Distribution With today¶s business environment character ized by growing competition, shr ink ing cycle times and the accelerating pace of technological innovation, companies are increasingly being forced to streamline business processes. In a world in which it is no longer enough to simply have the best product; these companies are focusing on core Page : 30 of 51
competencies and closer par tnershi ps over the whole su pply chain. Here, increased eff iciency in sales and distr i bution is a key factor to ensure that companies retain a competitive edge and improve both prof it margins and customer ser vice. In helping business to µbeat them on deliver y¶, the sales and distr i bution modules of many ER P vendors offer a comprehensive set of best-of-breed components for both order and logistics management. Many of these systems are tightly integrated with the Distr i bution R equirements Planning (DR P) engine of the µfor just-in-time¶ deliver ies. This integration enables the mapping and su pply of single-site or multisite organizations and the def inition of relationshi ps in a company¶s inter nal su pply chains. Developing precise logistics planning for just-intime deliver ies, this system can also generate replenishment orders by using def ined warehouse requirements. The following are the sales related transactions: 1. Sales quer ies, such as inquir ies and quotations 2. Sales orders 3. Outline agreements, such as contract and scheduling agreements 4. Deliver y/Shi pment 5. Invoicing/Billing 6. Af ter Sales R epor ts
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A Sales and Distr i bution module will contain the following su bsystems: y
y
y
y
y
Master Data Management S ales
Order
Management
Purchase Order Management arehouse Management S hipping
y
Billing
y
Pricing
y
S ales S upport
y
T ransportation
y
F oreign T rade
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INTRODUCTION The purpose of this process is to communicate su pplier ¶s common Advanced Product Quality Planning (APQP) and Control Plan guidelines developed jointly by Chr ysler, Ford, and General Motors. The repor t provides guidelines designed to produce a product quality plan which will su ppor t the development of a product or ser vice that will satisf y the customer . The term ³product´ will be used throughout this repor t and is meant as either product or ser vice. The term ³su pplier´ will also be used throughout this repor t and is meant to apply to su ppliers and su bcontractors. Some of the expected benef its in using these guidelines are: 1. A reduction in the complexity of product quality planning for the customers and su ppliers. 2. A means for su ppliers to easily communicate product quality planning requirements to su bcontractors.
FUNDAMENTALS OF ADVANCED PRODUCT QUALITY PLANNING Advanced Product Quality Planning is a str uctured method of def ining and establishing the steps necessar y to assure that a product satisf ies the customer . The goal of advanced product quality planning is to facilitate communication with ever yone involved to assure that all required steps are completed on time. Effective advanced product quality planning depends on a company¶s top management commitment to the effor t required in achieving customer satisfaction. Some of the benef its of advanced product quality planning are:
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1. To direct resources to satisf y the customer . 2. To promote early identif ication of required changes. 3. To avoid late changes. 4. To provide a quality product on time at the lowest cost.
The work practices, tools, and analytical techniques descr i bed in this repor t are listed in a logical sequence to make it easy to flow. Each advanced product quality plan is unique. The actual timing and sequence of execution is dependent on customer needs and expectations and/or other practical matters.
Organize the Team The su pplier ¶s f irst step in advanced product quality planning is to assign responsi bility to a cross f unctional team. Effective product quality planning requires the involvement of more than just the quality depar t ment. The
initial
team
should
include
representatives
from
engineer ing,
manufactur ing, mater ial control, purchasing, quality, sales, f ield ser vice, su bcontractors, and customers, as appropr iate.
STEPS
IN
ADVANCED
PRODUCT
QUALITY
PLANNING
1.
PLAN AND DEFINE PROGRAM This section descr i bes how to determine customer needs and expectations
in order to plan and def ine a quality program. All work must be done with
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the customer in mind, providing better products and ser vices than the competition. The early stage of the product quality planning process is designed to assure that customer needs and expectations are clearly understood. The in puts and out puts applicable to the process may var y according to the product process and customer needs and expectations. Some recommendations discussed in this section are as follows:
Inputs y
Voice of the customer 1.
Market R esearch
2.
Histor ical Warranty and Quality Information
3. Team Exper ience y
Business Plan/Marketing Strategy
y
Product/Process Benchmark Data
y
Product/Process Assumptions
y
Product R eliability Studies
y
Customer In puts
Outputs y
Design Goals
y
R eliability and Quality Goals
y
Preliminar y Bill of Mater ial
y
Preliminar y Process Flow Char t
y
Preliminar y Listing of S pecial Product and Process Character istics
y
Product Assurance Plan
y
Management Su ppor t
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2.
PRODUCT DESIGN AND DEVELOPMENT This section discusses the elements of the planning process dur ing
which design features and character istics are developed into a near f inal form. The Product Quality Planning Team should consider all design factors in the planning process even if the design is owned by the customer or shared. The steps include prototy pe build to ver if y that the product or ser vice meets the objectives of the Voice of the Customer . A feasi ble design must permit meeting production volumes and schedules, and be consistent with ability to meet engineer ing requirements, along with quality, reliability, investment cost, weight, unit cost and timing objectives. Although feasi bility studies and control plans are pr imar ily based on engineer ing drawings and specif ication requirements, valuable information can be der ived from the analytical tools descr i bed in this section to f ur ther def ine and pr ior itize the character istics that may need special product and process controls.
Inputs y
Design Goals
y
R eliability and Quality Goals
y
Preliminar y Bill of Mater ial
y
Preliminar y Process Flow Char t
y
Preliminar y Listing of S pecial Product and Process Character istics
y
Product Assurance Plan
y
Management Su ppor t
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Outputs y
Design Failure Mode and Effects Analysis (DFMEA)
y
Design for Manufacturability and Assembly
y
Design Ver if ication
y
Design R eviews
y
Prototy pe Build- Control Plan
y
Engineer ing Drawings (including math data)
y
Engineer ing S pecif ications
3. PROCESS DESIGN AND DEVELOPMENT This
section
discusses
the
major
features
of
developing
a
manufactur ing system and its related control plans to achieve quality products. The tasks to be accomplished at this step of the product quality planning process depend u pon the successf ul completion of the pr ior stages contained in the f irst two sections. This next step is designed to ensure the comprehensive development of an effective manufactur ing system. The manufactur ing system must assure that customer requirements, needs and expectations are met.
Inputs y
Design Failure Mode and Effects Analysis (DFMEA)
y
Design for Manufacturability and Assembly
y
Design Ver if ication
y
Design R eviews
y
Prototy pe Build- Control Plan
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y
Engineer ing Drawings (including math data)
y
Engineer ing S pecif ications
y
Mater ial S pecif ications
y
Drawing and S pecif ication Changes
y
New Equi pment, Tooling and Facilities R equirements
y
S pecial Product and Process Character istics
y
Gages/Testing Equi pment R equirements
y
Team Feasi bility Commitment and Management Su ppor t
Outputs y
Packaging Standards
y
Product/Process Quality System R eview
y
Process Flow Char t
y
Floor Plan Layout
y
Character istics Matr ix
y
Process Failure Mode and Effects Analysis (PFMEA)
y
Pre-Launch Control Plan
y
Process Instr uctions
4. PRODUCT AND PROCESS VALIDATION This section discusses the major features of validating the manufactur ing process through an evaluation of a production tr ial r un. Dur ing a production tr ial r un, the Product Quality Planning Team should validate that the control plan and process flow char t are being followed and the products meet customer requirements. Additional concer ns should be identif ied for investigation and resolution pr ior to regular production r uns. Page : 39 of 51
Inputs y
Packaging Standards
y
Product/Process Quality System R eview
y
Process Flow Char t
y
Floor Plan Layout
y
Character istics Matr ix
y
Process Failure Mode and Effects Analysis (PFMEA)
y
Pre-Launch Control Plan
y
Process Instr uctions
y
Measurement Systems Analysis Plan
y
Preliminar y Process Capability Study Plan
y
Packaging S pecif ications
y
Management Su ppor t
Outputs y
Production Tr ial Run
y
Measurements Systems Evaluation
y
Preliminar y Process Capability Study
y
Production Par t A pproval
y
Production Validation Testing
y
Packaging Evaluation
y
Production Control Plan
y
Quality Planning Sign-Off and Management Su ppor t
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5.
FEEDBACK,
ASSESSMENT
AND
CORRECTIVE
ACTION Quality planning does not end with process validation and installation. It is the component manufactur ing stage where out put can be evaluated when all special and common causes of var iation are present. This is also the time to evaluate the effectiveness of the product quality planning effor t. The production control plan is the basis for evaluating product or ser vice at this stage. Var iable and attr i bute data must be evaluated. It is the obligation of all su ppliers to meet customer requirements on all character istics. S pecial character istics must meet the indices specif ied by the customer .
Inputs y
Production Tr ial Run
y
Measurements Systems Evaluation
y
Preliminar y Process Capability Study
y
Production Par t A pproval
y
Production Validation Testing
y
Packaging Evaluation
y
Production Control Plan
y
Quality Planning Sign-Off and Management Su ppor t
Outputs y
R educed Var iation
y
Customer Satisfaction
y
Deliver y and Ser vice
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6.
CONTROL PLAN The purpose of this Control Plan methodology is to aid in the
manufacture of quality products according to customer requirements. It does this by providing a str uctural approach for the design, selection and implementation of value-added control methods for the total system. Control Plans provide a wr itten summar y descr i ption of the systems used in minimizing process and product var iation. The Control Plan does not replace the
information
contained
in
detailed
operator instr uctions.
This
methodology is applicable to a wide range of manufactur ing processes and technologies. The Control Plan is an integral par t of an overall quantity process and is to be utilized as living documents. An impor tant phase of the process for quality planning is the development of a Control Plan. A Control Plan is a wr itten descr i ption of the system for controlling par ts and processes. A single Control Plan may apply to a grou p or family of products that are produced by the same process at the same source. Sketches as necessar y, may be attached to the Control Plan for illustration purposes. In su ppor t of a Control Plan, process monitor ing instr uctions should be def ined and used continually. In effect, the Control Plan descr i bes the actions that are required at each phase of the process including receiving, in-process, out-going, and per iodic requirements to assure that all process out puts will be in a state of control. Dur ing regular production r uns, the Control Plan provides the process monitor ing and control methods that will be used to control character istics. Since processes are expected to be continually u pdated and improved, the Control Plan reflects a strategy that is responsive to these changing process conditions.
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The Control Plan is maintained and used throughout the product life cycle. Early in the product life cycle its pr imar y purpose is to document and communicate the initial plan for process control. Su bsequently, it guides manufactur ing in how to control the process and ensure product quality. Ultimately, the Control Plan remains a living document, reflecting the current methods of control, and measurement systems used. The Control Plan is u pdated as measurement systems and control methods are evaluated and improved. For process control and improvement to be effective, a basic understanding of the process must be obtained. A multi-disci plined team is established to develop the Control Plan by utilizing all the available information to gain a better understanding of the process, such as: y
Process Flow Diagram
y
System/Design/Process Failure Mode and Effects Analysis
y
S pecial Character istics
y
Lessons Lear ned from Similar Par ts
y
Team¶s K nowledge of the Process
y
Design R eviews
y
Optimization Methods
The benef its of developing and implementing a Control Plan include: 1. Quality gets improved. 2. Customer gets f ully satisf ied. 3. Communication of any change in product, process, and control method gets better .
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INTRODUCTION Purpose: Production
Par t
A pproval
Process
(PPAP)
def ines
gener ic
requirements for production par t approval, including production and bulk mater ials. The purpose of PPAP is to determine if all customer engineer ing design record and specif ication requirements are properly understood by the su pplier and that process has the potential to produce product consistently meeting these requirements dur ing an actual production r un at the quoted production rate.
Applicability: PPAP shall apply to inter nal and exter nal su pplier sites of bulk mater ials, production mater ials, and production or ser vice par ts. For bulk mater ials, PPAP is not required unless requested by your customer . A su pplier of standard catalogue production or ser vice par ts shall comply with PPAP unless formally waived by the customer . Tooling shall be maintained for standard catalogue items as long as the items are offered or stated as being available.
1.
GENERAL
The su pplier shall obtain f ull approval from the customer product approval activity for: a)
A new par t or product
b)
Correction of a discrepancy on a previously su bmitted par t
c)
Product modif ied by an engineer ing change to design records, specif ications or mater ials.
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2. PPAP
PROCESS REQUIREMENTS
Significant Production Run
For production par ts, product for PPAP shall be taken from a signif icant production r un. This production r un shall be from one hour to eight hours, of production, and with the specif ic quantity to total a minimum of 300 consecutive par ts, unless otherwise specif ied by the author ized customer quality representative. This r un shall be manufactured at the production site using the tooling, gauging, process, mater ials, and operators from the production environment. Par ts from each unique production process e.g. du plicate assembly line and/or work cell, eac h position of a multi ple cavity die, mold, tool or patter n, shall be measured and representative par ts tested. For bulk mater ials, no specif ic no. of ³par ts´ is required. If a sample is required to be su bmitted, it shall be taken in a manner as to assure that it represents ³steady-state´ operation of the process.
PPAP Requirements The su pplier shall meet all specif ied requirements, e.g. design records, specif ications, and for bulk mater ial, the Bulk Mater ial R equirements Checklist. Any results that are outside specif ication are cause for the su pplier not to su bmit the par ts, documentation and or records. Ever y effor t shall be made to correct the process so that all design record requirements are met. If the su pplier is unable to meet any of these requirements, the customer shall be contacted for determination of appropr iate corrective action.
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Inspection and testing for PPAP shall be performed by a qualif ied laborator y.
Commercial/independent
test
laborator ies
used
shall
be
accredited facilities. When a commercial laborator y is used, the su pplier shall su bmit the test results on the laborator y letter head, or the normal laborator y repor t format. The name of the laborator y that performed the tests, and the date(s) of the tests, and the standards used to r un the tests shall be indicated. Blanket statements of conformance are unacceptable for any test results.
The su pplier shall have the applicable items and records, listed below, for each par t, or family of par ts, regardless of the par t su bmission level. These records shall be in a PPAP par t f ile, or referenced in such f ile and be readily available. The items below shall be readily available for customer use in PPAP. The su pplier shall obtain pr ior approval from the customer product approval activity for exceptions or deviations to PPAP requirements.
Various Records in PPAP File
a) Design R ecords b) Any author ized Engineer ing Change documents c) Engineer ing A pproval, when required d) Design Failure Mode and Effects of Analysis, if su pplier is design responsi ble. e) Process flow diagrams f ) Process Failure Mode and Effects Analysis g) Dimensional R esults h) R ecords of mater ial / performance test results i) Initial process studies Page : 47 of 51
1) General 2) Quality Indices 3) Acceptance cr iter ia for initial study 4) Unstable processes 5) Processes with One-Sided S pecif ications or Non-Normal Distr i butions 6) Strategy When Acceptance Cr iter ia Are Not Satisf ied
j) Measurement System Analysis Studies k ) Qualif ied Laborator y Documentation l) Control Plan m) Par t Su bmission Warrant (PSW) n) A ppearance A pproval R epor t (AAR) O) Bulk Mater ials R equirements Checklist p) Sample Production Par ts q) Master Sample r ) Check ing Aids s) Customer-S pecif ic R equirements
3.CUSTOMER NOTIFICATION AND SUBMISSION REQUIREMENTS Customer Notification The su pplier shall notif y the responsi ble customer product approval activity of any design and process changes. The customer may su bsequently elect to require a su bmission for PPAP approval.
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Submission to Customer The su pplier shall su bmit for PPAP approval pr ior to the f irst production shi pment in the following situations unless the responsi ble product approval activity has waived this requirement. The su pplier shall review and u pdate, as necessar y, all applicable items in the PPAP f ile to reflect the production process, regardless of whether or not the customer requests a formal su bmission. The PPAP f ile shall contain the name of the responsi ble customer product approval activity person granting the waiver and the date.
4. SUBMISSION TO CUSTOMER- LEVELS OF EVIDENCE Submission Levels The su pplier shall su bmit the items and/or records specif ied by the level as requested by the customer: Level 1 ± Warrant only (and for designated appearance items, an A ppearance A pproval R epor t) su bmitted to the customer . Level 2 ± Warrant with product samples and limited su ppor ting data su bmitted to the customer . Level 3 ± Warrant with product samples and complete su ppor ting data su bmitted to the customer . Level 4 ± Warrant and other requirements as def ined by the customer . Level 5 ± Warrant with product samples and complete su ppor ting data available for review at the su pplier ¶s manufactur ing location.
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The su pplier shall use level 3 as the default level for all su bmissions unless specif ied otherwise by the responsi ble customer product approval activity. A su pplier of bulk mater ial only shall use level 1 as the default level for all bulk mater ial PPAP su bmissions unless specif ied otherwise by the responsi ble customer product approval activity.
5.
PART SUBMISSION STATUS
General The su pplier shall be notif ied by the customer of the disposition of the su bmission. Af ter production par t approval, su ppliers shall assure that f uture production continues to meet all customer requirements.
Customer PPAP Status Full Approval indicates that the par t or mater ial meets all customer
specif ications and requirements. The su pplier is therefore author ized to shi p production quantities of the product su bject to releases from the customer scheduling activity.
Interim Approval permits shi pment of mater ial for production requirements
on a limited time or piece quantity basis. Inter im A pproval will only be granted when the su pplier has: y
clearly def ined the root cause of the non-conformities preventing production approval; and
y
Prepared an inter im approval action plan agreed u pon by the customer . R e-su bmission to obtain ³f ull approval´ is required.
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