Summer Internship Report

Daimler India Commercial Vehicles

2017


JIT Implementation for Seoyon-E-Hwa

Daimler Trucks Asia

BY Swati Singh 10-06-11

2017


JIT Implementation for Seoyon-E-Hwa

Daimler Trucks Asia

BY Swati Singh 10-06-11

2017


2017

Declaration

I hereby declare, to the best of my knowledge and ability that my work on the Summer Internship Project title ”JIT Implementation for Seoyon-ESeoyon -E-Hwa” Hwa” is a genuine research work undertaken by me. It has not been published anywhere earlier and is prepared after completion of the Summer Internship Program with Daimler India Commercial Vehicles

Name: Swati Singh Roll No.:10-06-11


2017

Certificate from summer project guide

THIS IS TO CERTIFY THAT SWATI SINGH, STUDENT OF THE PGDM-EXECUTIVE AT KJ SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH, HAS WORKED UNDER OUR GUIDANCE AND SUPERVISION. THIS SUMMER PROJECT REPORT TITLE “ JIT IMPLEMENTATION FOR SEOYON-E-HWA” HAS THE REQUISITE STANDANRD AND TO THE BEST OF OUR KNOWLEDGE HAS NO PART OF IT BEEN REPRODUCED FROM ANY OTHER SUMMER PROJECT, MONOGRAPH, REPORT OR BOOK.


Certificate

2017


2017

Table of Contents

Declaration.............................................................................................................................................. 2 Certificate from summer project guide .................................................................................................. 3 Certificate................................................................................................................................................ 4 Acknowledgement .................................................................................................................................. 7 Preface .................................................................................................................................................... 8 Introduction to Daimler .......................................................................................................................... 9 Timeline................................................................................................................................................. 10 Company Profile of DICV ....................................................................................................................... 11 Executive Summary ............................................................................................................................... 15 Milestones............................................................................................................................................. 16 Organization of Supply Chain Management ......................................................................................... 17 Role of MHE Team ................................................................................................................................ 18 End to End process flow ........................................................................................................................ 20


Work packages under JIT implementation



End to End process flow



Project Preparation



Part inventory and storage space analysis - Current state mapping



Truck trip time study



Process study @ Seoyon-E-Hwa



Analysis of production data for Kanban calculation



Proposal for project targets



SWOT Analysis



Conclusion

2017


2017

Acknowledgement The internship opportunity I had with DICV was a great chance for learning and professional development. Therefore, I consider myself as a very lucky individual as I was provided with an opportunity to be a part of this company during my MBA. I am also grateful for having a chance to meet so many wonderful people and professionals who led me though this internship period and gave me a home away from home in Chennai.

Bearing in mind previous I am using this opportunity to express my deep gratitude and thanks firstly to Mr. Hareram, DGM – MHE for giving me a chance to be a part of his department and for being extremely supportive throughout my internship. Next I would like to thank Mr. Anand Zalke [Senior Manager] of DICV – , who in spite of being busy with his regular duties, took time out to hear, guide and correct me thus enabling me to carry out my project successfully at DICV. I express my deepest thanks for taking part in many important decisions & giving necessary advice and guidance and arranging all facilities to make life easier.


2017

Preface Summer internship is an important part of the MBA degree as it gives us a practical knowledge of the industry. It gives us an insight of how an organization works. I got an opportunity to complete my summer internship at Daimler India Commercial Vehicle Pvt. Ltd, Chennai Plant in the Supply Chain Management domain in the department Management Handling Engineering.

It was a great experience to work with the corporation which has made itself a brand in the commercial vehicle sector on the national and international level. Daimler Trucks is the world’s largest manufacturer of trucks and is consistently increasing its share in the Indian market.

I as an intern worked in MHE department for a period of 15 weeks. My department is concerned about logistics Plan for Every Part to be used in the production line, logistics Infrastructure necessary for material storage, handling and movement are planned and


2017

Introduction to Daimler Daimler AG is a German multinational automotive corporation. Daimler AG is headquartered in Stuttgart, Baden-Württemberg, Germany. By unit sales, it is the thirteenthlargest car manufacturer and largest truck manufacturer in the world. In addition to automobiles, Daimler manufactures buses and provides financial services through its Daimler Financial Services arm. As of 2017, Daimler owns or has shares in a number of car, bus, truck and motorcycle marquees including Mercedes-Benz, Mercedes-AMG, Smart Automobile, Freightliner, Western Star, Thomas Built Buses, Setra, BharatBenz, Mitsubishi Fuso, MV Agusta as well as shares in Denza, KAMAZ, Beijing Automotive Group, Tesla Motors, and Renault-Nissan Alliance. The Maybach marquee was closed at the end of 2012, but was revived in November 2014 as "Mercedes-Maybach", an ultra-luxury edition of the Mercedes-Benz S-Class.


2017

Timeline 1959 1896

2007

Production World’s first

of Pullman

truck with a

van with 2

4 hp and 2

controlled

cylinder engine

1923

axle

First operational

1981

Start of Global Heavy duty

Acquisition

Engine Platform

of

prodn. at

Freightliner

Detroit

2001

diesel engine by

1969

Benz

Acquisition of US Engine

Start of planetary hub prodn. In Rastatt

manufacturer Detroit -DDC

2012 1. Detroit introduced as new brand for power portfolio 2. Start of production series 900 and medium duty in India

2015 Start of heavy duty transmission production in Detroit


2017

Company Profile of DICV There is a great desire among Indian customers for a world class truck which they can proudly call their own. The need of the hour is a truck that will give them a high value on their investment. With this perspective, Daimler AG incorporated Daimler India Commercial Vehicles (DICV) as a wholly-owned subsidiary in 2008, in order to create world-class products, to be manufactured indigenously in partnership with Indian suppliers. Currently, Daimler is present in the Indian market with the Mercedes-Benz brand of trucks. Beginning 2012, DICV initiated production of commercial vehicles under the uniquely Indian brand ‘BharatBenz’. Towards this objective, DICV had invested Rs.4 ,400 crores in establishing a state-of-the-art manufacturing plant at Oragadam near Chennai, including an extensive research & development arm. Subsequent to the launch of an all new brand "BharatBenz", DICV set to take its vision and mission into the market. After a successful Premiere of its trucks in March 2012, DICV inaugurated its state-of-the art plant at Oragadam, near Chennai, in April 2012. Later,


2017

Domestic Vehicles:

Medium Duty (GVW 9 – 15T)

MD914 R

Heavy Duty (GVW 16 – 37T)

MD1214

MD IN-POWER 1214RE


Thunderbolt

3143CM – Used for heavy duty, off road, deep pit iron ore mining, coal mining, etc. 31T max. Vehicle weight with a usable load of 19T and a 12L 430HP BS4 engine.

Tractors (GVW 40-49T)

2017


2017

Export Vehicles:

FUSO Canter LIFT

FUSO FJ

FUSO Fighter

On MARCH 6 TH 2014, Daimler laid the foundation stone for its new bus plant. The new bus manufacturing plant is spread across an area of 27.91 acres within the existing premises of DICV. The bus plant manufactures and assemble buses under the Mercedes-Benz and BharatBenz brands and will be completed by the 2 nd quarter 2015. The DICV plant in Oragadam will thus be the only Daimler Truck plant worldwide, that manufactures three brands of Trucks and Buses, as well as engines under one roof. Daimler India buses are offered in 9t, 16t and above 16t categories in both front and rear engine configurations. An investment of INR 425 Cr has been earmarked for the bus project in India for an installed


2017

Executive Summary The Supply Chain Management department is divided into various divisions namely Power train, Vehicle, In Bound Logistics, Out Bound Logistics, In Plant Logistics, Consolidation Centre and more. Each division is tasked with ensuring the supply and availability of particular parts and aggregates to the production line. I was working in the MHE department which is responsible for plan for every parts used in production line, logistics Infrastructure necessary for material storage, handling and movement, packaging concerns and resolution process, packaging design and development. The Supply Chain and Logistics (SCML) department handles more than 6000 different parts from about 280 local suppliers across India. These suppliers are spread out across various regions and cities like Chennai, Coimbatore, Pune, Pithampur, Rajkot and Delhi. In addition, there are many parts that are imported and many parts that are under development for localization and exports, which are also handled by the SCML department through its Consolidation Centre. Finally, the finished vehicles are also transported by SCML. During the course of the training, the working of different sub-departments was


Milestones

2017


2017

Organization of Supply Chain Management The organization of Supply Chain Management in DICV is as follows: The Supply Chain Management department of DICV is organized as f L2 – Vice President Supplier Management

L3 – SM Vehicle

L3 – SM Powertrain

L3 – Logistics Planning

L3 – Logistics Operations

L3 – SCM Governance

Ollows HDT Engine Frame, Chassis and Suspension Interior/Exterior

MDT Engine Axle/Prop shaft

Launch, Change & Inventory

Inbound and Outbound

SCM Quality Assurance


Role of MHE Team 1) Plan for every parts process for DICV

2017


3) Process Description - Packaging concern resolution process

2017


End to End process flow

2017


IV.

2017

Unloading Process: Unloading Team verifies Vehicle details as per GVN /Invoice copy,

and then unloads the material. Checking the no. of pallets/Packages unloaded and is verified with GVN. Acknowledgement given on GVN 2nd copy and same is handed over to driver. V.

Quantity matching activity : As per GVN, 100% Physical verification carried out only for

top 20 discrepancy supplier which will be circulated quarter wise and the same will be displayed in all unloading docks. Sample check made in all other receipts. In case of discrepancy /packaging damage then material is moved to hold area and discrepancy report / ISPR report is generated. VI.

GRN preparation: Based on GVN acknowledgement GRN is prepared. GRN No written

on the GVN and GVN is forwarded for matching. Gate Exit is done based on acknowledged copy. Driver will be given extra invoice with security stamp & Material gate stamp as acknowledgement for material receipt. VII.

Invoice submission to Finance : GVN is matched with Invoice. GRN No written on

invoice. Extra copy of invoice & GVN filed for reference purpose. OFB & DFT is submitted to Finance \based on Finance report, acknowledgement is taken for submission


XIII.

2017

Communication of usage decision to In- Plant Logistics Team : In-Plant Logistics

receives email regarding put away Usage Decision triggers a put away slip in the printer. XIV.

Movement to designated storage location : Put away slips generated indicate the

designated location to which the approved items need to be put awa y. For Seoyon-E-Hwa there is no quality check part. Finally from LC to line side movement of parts internal Kanban is used. Pick list is generated after scanning all the barcode of Kanban cards at production line side. Post picking data after scanning all Kanban cards in a route, pick list is generated in LC. Parts from LC are collected as per pick list and kept at staging area. Tugger operator will get the parts from staging to feed the line side location. Stock will transfer from PP-10 to WP-10. Sample Sheets (used during material Inwarding & Out warding)

Invoice Copy


GRN

Pick List

2017


2017

Process and department wise work distribution under VSM Marketing

PPS

IBL

Supplier

Material Gate

Monthly Requirement

Validate

6 week rolling

supportability

plan

APO

Give collection date to supplier

Generate

Generate

invoice and

invoice and

ASN

ASN

Y

Generate

Verify

invoice and ASN

N

SM

Upload in

SM will correct ASN

Prepare GVN

Plan moves

Agg. Level

MRP Run –

Schedule

to D2S

requirement

Short and

posting on

generation

long term

vendor portal


2017

Work Packages under JIT implementation for Seoyon-E-Hwa 1) Project Preparation

It is an attempt to identify and define project work (goals and objectives) and to establish an efficient decision making process for managing further planning and development of the project. Following are the steps involved in preparation phase:-

Prepare Project Charter


2017

on a regular basis. Missed milestones need highlighting when known, and then the standard escalation process needs to be followed.


Prepare Project member availability calendar This calendar specifies the duration different stakeholders must give for the project.

2017


Monitoring the current truck trip and analysis of supplier's FG

Total truck cycle time for plant#2 is 4hrs and 45 mins.

2017


2017

Monitoring the line stoppage Cross verify with IPL team, there was production line stoppage because of Seoyon-E-Hwa parts in last 3 months.


2017

Storage space measurement @ DICV Space occupied by each part is measured with IPL team to cross check space saving after JIT implementation. GLT

KLT

Area Saving (%)

Total Area Present

229.05

19.81

248.86

Total Area Required

199.38

13.86

213.24

Area Saved

29.67

5.95

35.62

Total Area Saved

35.62

warehouse cost/m2

40000

Savings (Rs.) NOTE

1424640 Area

.96 (one layer) * 4 *2

14.31 0.14 7.68 (For Market Place Rack)

Verify PFEP at LC Plan for every part is check with IPL team in LC. This step includes cross checking the part number against part pack quantity, packaging dimensions, storage location, actual pallets present at LC, maximum pallets for the parts, area occupied by the individual parts.


2017

Current state mapping – Workshop Current state mapping is a lean-management method for analyzing the current state and designing a future state for the series of events that take parts from its beginning through to the DICV.


2017

daily requirement supplier keeps the FG ready in DICV pallet at dispatch area. TVS logistics is the logistics partner for DICV. For plant#2 total trips is 2 per day and for plant#3 is 1 per day. Plant#2 is 3kms from DICV and plant#3 is 30kms.Empty pallets loaded trucks reaches supplier plant and unloaded .Total time of travelling for plant#2 is 15mins and plant#3 is 45mins and unloading time for plant#2 is 20mins and for plant#3 is 35mins. FG pallets are

loaded back in trucks and time for loading at plant#2 is 26mins and for plant#3 is 75mins. Trucks after loading return to DICV fence gate and the time from plant#2 is 7mins and from plant#3 is 30mins. After reaching to DICV Inwarding procedure starts which takes 15mins for plant#2 parts and 60mins for plant#3 parts. After FG unloading trucks goes to side loading area of DICV for empty loading and time recorded for plant#2 is 28 mins and for plant#3 is 20mins. By considering all the above mention time and including waiting time total trip time for Plant#2 is 4hrs 45mins and for plant#3 is 23hrs.

Prepare part matrix Part Matrix for Seoyon-E-Hwa contains all the details of the parts. There are total 72 parts pf Seoyon-E-Hwa out of which 26 is from Plant#2 and 46 from plant#3.Sample copy of part


2017


2017

3) Truck trip time study

Truck queue time study This step involves the study of loading/unloading @ DICV and Seoyon-E-Hwa along with study of gate in/gate out @ DICV and Seoyon-E-Hwa. Trip

Time 10:52:00 AM

12:03:00 PM

Seoyon-E-Hwa plant#2 in Seoyon-E-Hwa Empty Unloading starts Seoyon-E-Hwa Empty Unloading finished Seoyon-E-Hwa FG Loading starts Seoyon-E-Hwa FG Loading finished Seoyon-E-Hwa plant#2 Out

12:15:00 PM

DICV Inward time

12:45:00 PM

DICV dock in

3:00:00 PM

DICV FG unloading starts

3:13:00 PM

DICV FG unloading finished

3:13:00 PM

DICV dock out

3:16:00 PM

Side loading window In (Empty Collection)

3:45:00 PM

Side loading window Out (Empty Collection)

11:05:00 AM 11:24:00 AM 11:26:00 AM 11:52:00 AM

Trip 1

Activities at plant#2


Trip

Time

Activities at plant#3

11:49:00 AM

9:25:00 PM

Seoyon-E-Hwa plant#3 in Seoyon-E-Hwa Empty Unloading starts Seoyon-E-Hwa Empty Unloading finished Seoyon-E-Hwa FG Loading starts Seoyon-E-Hwa FG Loading finished Seoyon-E-Hwa plant#3 Out

10:05:00 PM

DICV Inward time

7:00:00 AM

DICV dock in

7:23:00 AM

DICV FG unloading starts

8:25:00 AM

DICV FG unloading finished

8:30:00 AM

DICV dock out

9:15:00 AM

Side loading window In (Empty Collection)

9:35:00 PM

Side loading window Out (Empty Collection)

2:35:00 PM 3:10:00 PM 7:10:00 PM 8:25:00 PM

Trip 1

10:16:00 AM

DICV In 1st Trip

10:05:00PM

2017

Dock In 7:00:00AM

DICV Outward time

Dock Out

DICV Out

8:30:00 AM

10:16:00 AM

Seoyon-EHwa In 11:49:00 AM

Seoyon-EHwa Out 9:25:00 PM


2017

Truck load capacity calculation for plant#3 is shown in the following excel sheet. The efficiency of truck for plant#3 is 94% and the weight required is 64%.


2017

4) Process study @ Seoyon-E-Hwa 1

Inventory Level @

2

Inventory @

3

plant 2

Inventory @ plant 3

4

5

Storage space measurement

supplier end

6

Area

Area

calculation @

Calculation @

plant 2

Plant 3

9

8

7

System

Packaging

Past 3

Requirement

Verificati

month line

on at LC

stoppage

Collect the inventory level @ Seoyon-E-Hwa Inventory at supplier end is calculated and cross verify with the forecast volume of Daimler requirement for both the plants. How much of inventory in the form of finished goods must be present at supplier side to cater to Daimler daily peak volume. Excel sheet for both the plant inventory is given below. Inventory at Plant#2:


Inventory at Plant#3:

2017


2017

Storage space measurement @ Seoyon-E-Hwa Dispatch area and finished goods area layout of Seoyon-E-Hwa end is measured. After JIT additional space requirement is calculated and implemented after discussion with the supplier. Layout and area calculation for both the plant is given as follows:


Area Calculations

Plant 2

Plant3

Area Required (1 Day dispatch ready)

87.6

53.04

Area Available

261.464

50

Difference

173.864

-3.04

2017

Scheduling data collection - Monthly forecast and Daily schedule On the basis of monthly forecast and daily schedule daily peak production volume is calculated. Based on daily peak production stock at DICV, safety stock, transit stock and supplier stock days are calculated. Sample copy of parts daily consumption is attached. Row Labels 1/4/2016 1/5/2016 1/6/2016 1/7/2016

Sum of A4008110210 0

Sum of A4008110310 0

Sum of A4008110041 0

Sum of A4008100510A0 9

0 0 0

0 0 0

0 0 0

25 30 23


2017

DICV, how much inventory is maintained, which vehicle is used for inventory movement. How much time is required for parts loading, unloading, waiting time for gate in, dock in, dock out, gate out. 5) Analysis of production data for Kanban calculation 1

Last 3 month production

2

Average demand

3

Next 3 month forecast plan

4

5

Demand

6

Delivery Vs Plan Data

fluctuation

Rework Data (% rejection)

volume 9

8

Collect the data for last 3 month production volume Last 12 months data is considered for calculation of daily peak volume.

Calculate the average demand based on production volume Forecast 3 months data is taken. Highest consumption for particular months among the 3 is

7




2017

Collect the data of Delivery vs. Plan (From Supplier to DICV)

Cross verifying the trigger list which is sent by PPS team to supplier about daily consumption and what is receive at DICV is same. If there is mismatch again list is sent to supplier through supply manager is equalize in next delivery from supplier end.

Collect the data of rework (% of rejection as incoming) This step involves if Palletization of items which are to be moved to quality inspection area Sampling Plan agreed between PQ&IPL to be used for segregation. Preventive quality team will look for defects in the parts and send to claim pool management (CPM) team for rectification if can be done at DICV else parts will be reverted back to supplier. There is no rework and rejection in last 3 months for Seoyon-E-Hwa parts.

Collect the past 3 month line stoppage data due to Supplier parts This line stoppage data is from IPL team and there is no line stoppage due to Seoyon-E-Hwa parts.




2017

Portal should send the mail regarding consumption information to the supplier at regular defined interval.

Field details needed for creation of BRS portal: Fields

Description

Vendor Code Plant Part Number Opening stock Received stock Consumed stock Safety Stock Rejection Available stock

JIT supplier 6365 All parts from the selected vendor based on the vendor code Stock immediately after the trigger time Stock when GRN is made Stock transfer from PP10 to WP10 ( Consider open posting for calculations) Reflect the existing safety stock (in Nos.) from SAP Consider the RJ10 value Opening stock + GRN - Consumed stock

6) Proposal for project targets

Plan for

Inventory

Storage

Truck loading

reducing TAT

level cal. @

space cal. @

pattern

DICV

DICV

proposal

4C Proposal

Kanban Calculation


2017

Storage space calculation @ DICV After JIT implementation inventory storage space reduces from 248.86m 2 to 213.24m 2.Total area saving of 35.62m 2 is done. This results in cost saving of 14 lacs almost 14.31%.

Truck loading pattern proposal 2 trips per day for plant#2 and loading pattern is shown below


2017

4C proposal 1. Container 2. Container presentation 3. Consumption 4. Container delivery internal logistics

Kanban calculation Kanban calculation is done keeping 3 days of loop quantity for plant#2 and 4 days of loop quantity for plant#3.Although we have tried to send e-trigger rather than physical Kanban cards to avoid the loop holes in the system after fixing the part quantities with IPL team (based on consumption stock on daily basis).

Quantify KPI targets Key performance indicators (KPI) are a set of quantifiable measures that a company uses to gauge its performance over time. These metrics are used to determine a company's progress


SWOT analysis on Implementation of End to End Project

Strengths 1. Manageable stock at DICV as per production daily peak volume demands

2. After JIT Human/BOM errors will reduce because as physical qty will be used to send triggers 3. No physical kanban cards required thus no tension of lost or missed cards

Opportunities

Weakness 1. Dependence on internal Kanban

adherence is a major issue. Loss and misplacement of physical Kanban cards and for some parts physical cards are not present. There is mismatch of Kanban card quantity and pack quantity of parts.

Threats

2017


2017

CONCLUSION The JIT production process means inventory levels are kept to a minimum. A low inventory figure on the balance sheet means a higher inventory turnover ratio, making the company look more efficient. A company with little to no inventory has a much higher ratio than a company with equivalent COGS expenses that utilizes a more anticipatory production strategy. High inventory turnover ratios are considered a good sign of operational efficiency, effective purchasing management, and productive use of advertising and promotional campaigns

aimed

at

generating

sales.


2017

Conclusion and Recommendations

Internship Report || Swati Singh (PGDM Executive)

Page 48

Summer Internship Report

Recommend Documents