14020741056

SUMMER INTERNSHIP PROJECT

2014-2016

“TO STUDY THE VARIATIONS IN THE DEMAND PATTERN OF VEHICLES AND

ANALYZE IT’S EFFECT ON PRODUCTION PLANNING”

“TO DEVELOP A SYSTEM FOR IDENTIFICATION AND MANAGEMENT OF TROLLEY SO

AS TO REDUCE THE INCURRED PRODUCTION LOSS”

“DESIGN A DATA DASHBOARD FOR PRODUCTION PLANNING TEAM TO IMPROVE VISIBILITY AND MAKE DATA VISULALIZATION SIMPLER”

SYMBIOSIS INSTITUTE OF OPERATIONS MANAGEMENT, NASHIK

SUBMITTED BY

DHRUV GOEL-14020741056

COMPANY GUIDE

MR. ASHISH WANKEDE

SENIOR MANAGER, PPC

VOLVO EICHER COMMERCIAL

VEHICLES LTD , INDORE

FACULTY GUIDE

MR.BHIBUTI TRIPATHY

(PROFESSOR, SIOM)

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Table of content

S.NO CONTENT Pg. No

1 INTRODUCTION 7

2 REVIEW OF LITERATURE 8

3 INDUSTRY BACKGROUND 10

3.1 Major developments and investments in commercial vehicles Industry 11

4 COMPANY’S BACKGROUND 13

4.1 VECV at a glance 13

4.2 VECV enterprise 13

4.3 VECV strategic directions 14

4.4 New product Line 15

4.5 Time Line Of Eicher Motors 17

4.6 SCM at VECV 18

4.7 Production Planning and Control at VECV 19

4.7.1 Steps followed 24

4.8 Functions of procurement and Logistics 25

5 PROJECT1: Study variations in the demand pattern and analyze it’s

effect on Production Planning.

5.1 Objective of the project 26

5.2 Research Methodology 26

5.3 Current Production Planning System at VECV 29

5.4 Study approach 31

5.5 Data collection method 32

5.5.1 Primary data 32

5.5.2 Secondary Data 32

5.6 Observations 33

6 PROJECT2: To develop a system for identification and management of

trolleys so as to reduce incurred production losses.

6.1 Need and scope of the project 43

6.2 Capital asset and asset management system 44

6.3 Current scenario at VECV 45

6.4 Concept of 5‟s 47

6.5 Suggested Solution 49

6.6 Conclusion 50

6.7 Further Steps 49

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7 PROJECT3: Design a data dashboard to improve the visibility and

make data visualization simpler for PPC team.

7.1 Objective of the project 51

7.2 Need of the project 51

7.2.1 Advantages of dashboard 52

7.2.2 Expected project deliverables 52

7.2.3 Project Plan 53

7.3 Dashboard 54

7.3.1 Dashboard Designing 55

7.3.2 Design principles for dashboard 57

7.4 Software requirement for the project 58

7.5 Solution Requirement(dashboards) 58

7.6 Data Input analysis 59

7.6.1 Marketing Plan 59

7.6.2 Dashboard view of parameters 59

7.7 Conclusion 64

8 References 65

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Declaration

I declare that the work presented in this report titled “Studying the variations in the demand

pattern of the vehicles and analyzing its effect on production planning, Developing a system for

the management and identification of trolleys to reduce the incurred production losses,

Designing a data dashboard to reduce incurred production losses ” submitted to Volvo Eicher

Commercial Vehicles Ltd Pithampur Plant, Indore and Symbiosis Institute of Operations

Management, Nashik as a part of Summer Internship Project curriculum is my original work. I

have not plagiarized or submitted the same work for the award of any other degree. In case this

undertaking is found incorrect, I accept that our report can be disregarded.

Date: 28.05.2014 Name - Dhruv Goel

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List of Figures

S.NO FIGURES Pg. No

1 Units sold by companies 12

2 LMD Trucks 15

3 HD Trucks 15

4 Buses 16

5 Shows a basic model of any supply chain 18

6 Study approach 31

7 Data collection format 32

8 Owner Identification of Trolleys 46

9 Details on New Trolleys 47

10 Trolley areas, space available and color coding 47

11 5s Red Tag for Trolleys 49

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List of Graphs

S.NO Graphs Pg. No

1 Shows the variations in demand in I,II and III period 33

2 Month wise variations in demand in I Period 34

3 Month wise variations in demand in II Period 34

4 Month wise variations in demand in III Period 34

5 Sales variations 35

6 Monthly variations for Terra 25 Bogie 35

7 Monthly variations for Terra 25 36

8 Planned Vs actual production for Terra 25 36

9 Monthly variations for Terra 16 37

10 Planned Vs actual production for Terra 16 37

11 Sales variations for Terra 16 38

12 Monthly variations for 10.50 model in BS3 and BS4category 38

13 Monthly variations for 10.59 model 39

14 Sales variations for 10.59 model 39

15 Monthly variations for 8X2 cab 40

16 Sales variations for 8X2 cab 41

17 Monthly variations for 8X2 cowl 42

18 Sales variations for 8X2 cowl 42

19 Delivery Precision graph for HD 53

20 Delivery precision showing quarterly actual Vs targeted comparison 54

21 Delivery precision showing Yearly actual Vs targeted comparison 54

22 Marketing plan showing projections for LMD and HD 55

23 % variations from the market wrt 25th and 5th plan for LMD and

HD

55

24 Number of vehicles added and deleted for LMD and HD 56

25 Graph showing the monthly variations in the various line losses 56

26 Dvdd Graph showing the monthly Roll out for HD and LMD 57

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Acknowledgement

I would like to propose my sincere acknowledgements to Mr. Ashish Wankhade Senior

Manager, PPC for allowing me to work as a trainee with his competent team and giving useful

inputs time to time whenever needed for the betterment of the project work. His guidance as an

instructor and friend are certainly going to help me in my days ahead in the professional world.

I would also like to thank Mr. B Sudhakaran Dy Manager, MPP and Mr. Mukesh Soni for their

guidance, suggestions, understanding, patience, and most importantly their criticism and

appraisal , which made the working challenging and enjoyable.

Finally I would like to express my heartfelt appreciation to Dr. Vandana Sonwaney (Director,

SIOM), Prof. P.N. Parameshwaran (Head Corporate Relations and Placements), Prof Bibhuti

Tripathy (Faculty, SIOM) and all SIOM staff members, my batch mates, seniors for their

guidance and last but not the least my parents for their constant support and guidance right from

the inception of this project to its closure.

In the end I would like to thank all those people whose name I have not mentioned here and who

has helped me directly or indirectly in in completing this project successfully.

DHRUV GOEL

MBA (Operations Management)

Symbiosis Institute of Operations Management, Nasik

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1.Introduction

This report presents my analysis and recommendations for the two month internship at VECV. In

my two months summer internship I worked on three projects. My first project was to study the

variations in the demand pattern of vehicles and analyze its effect on production planning. The

main objective of this project was to understanding the current production planning system of the

company, study the major sources of uncertainty in the marketing plan/demand and look for

patterns, relationship among variables and make a series of observations on the treatment of

uncertainty in production planning in practice.

My second project was to develop a system for identification and management of trolleys so as

to reduce incurred production losses on the line. The current system at VECV didn‟t had a proper

management system for the trolleys that lead to production losses because of non-availability

,Occupancy –availability,OEE ( Overall Equipment effectiveness )- Health of Trolleys and lack

of traceability of trolley. This led to huge production loss. So my tack was to understand the

current system at VECV, identify the need for change and create an improvement strategy so as

to reduce losses.

My third project was to design a PPC data dashboard to improve the visibility and make data

visualization simpler. Its main objective was to develop a tool that will provide a complete

overview of the key performance indicators and other parameters, useful in studying the

production plan. Provide multidimensional visual representation of data and reduce the time

spent by the production planning and control team in analyzing data and taking decisions and to

improve the current process and increase the efficiency of the supply chain as well as employees.

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2. Review of literature

Production Planning is one of the most challenging task that organizations around India are

facing today. It is always an issue of concern that because of huge variations in the marketing

plan it becomes difficult to plan production and it leads to inventory being stocked.

To start with, a detail literature review is done. Some of the most relevant papers and articles

related to the study have been illustrated below:

Author Objective Findings

Arnoldo C. Hax and Harlan C.

Meal

This paper provide a

framework for a hierarchical

decision making approach in

which the aggregate results of

capacity planning provide

constraints for detailed

scheduling decisions

The paper describes the

characteristics of the

production and distribution

problems presented in the firm

and discusses the detail of

each of those components.

Stephen C. Graves

This paper discuss how

uncertainty is handled in

production planning as well as

describe and critique current

practices and then prescribe

possible improvements to these

practices.

The current planning systems

do not provide adequate

decision support for these

tactical decisions and this

shortcoming is an opportunity

for new research and

development, which could

significantly improve the

practice of production planning.

Ananth V Iyer, Roy Vasher

and Sridhar Seshadri

This book discuss about

Toyotas SCM strategies and

its two distinct core values:

Toyotas Way and TPS

It shows how the company has

applied such principles to work

with its suppliers, dealers, and

manufacturers and coordinated

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the plans across the supply

chain.

Linea Kjell This paper describes the

general framework for

planning and scheduling.

It shows how manufacturing

planning address decisions on

the acquisition, utilization and

allocation of production

resources to satisfy customer

requirements.

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3. Industry Background

Commercial Vehicles form an essential part of the Indian automobile industry. They are

manufactured in various models and designs, and are used for transporting industrial outputs and

other commodities to their allocated destinations. Commercial Vehicles Industry in India has

witnessed speedy growth post-independence and at present is considered as one of the

flourishing sector of Indian economy. As per statistics, the expansion in commercial vehicles

sales in 2009 stood at 92.6% besides witnessing a decline in product prices by 20% in the first

quarter of FY 10 assisting the CV industry growth. The steady development in Commercial

Vehicles Industry has led to cutthroat rivalry among the various Commercial Vehicles

Manufacturers in India. To survive in the competitive market every CV manufacturer is coming

up with something new yet affordable to meet the Indian market requirement. A customer can

now select among the various commercial vehicle deluging the markets in reasonable rates.

Urging the need of better infrastructure and technology development for the growth of CVs in

India, the long-term growth potential of the commercial vehicle segment is conditional on the

economy accelerating back to 7%–8% GDP growth per annum and the Government expediting

policies that foster infrastructure development and support the growth of manufacturing

sector. The industry is seeking favourable policy support from the Government and continued

focus on reforms to reinvigorate investment sentiment and bring the auto sector back on track.

Apart from focusing on R&D to develop products for the Indian market and introducing fuel

efficient technologies, the industry needs to secure resources, particularly talent, through

investments in training and upgrading skills of the workforce.

There are six mega trends that will impact the revenues, costs and profitability of participants in

the Indian commercial vehicle industry:

Economic slowdown, delays in infrastructure projects and evolving regulations

create demand uncertainty and impact OEMs’ product strategies: Policies such as

deregulation of fuel prices and the new bus-body building code drive OEMs to introduce

compatible products and adopt process-oriented bus-body manufacturing.

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Fleets increase focus on total cost of ownership (TCO) and restructure composition

to include more LCVs: Fleets consider using TCO as an important procurement and

fleet management criterion. In addition, freight transporters add more LCVs to support

hub-and-spoke distribution model and increase adoption of used trucks to reduce fleet

acquisition cost.

Global OEMs design products for the domestic market and look at developing India

as an export hub: Global OEMs will also be looking to make their alliances with

domestic players successful; to leverage the latter‟s understands of the local market and

their distribution infrastructure.

Suppliers increase localisation, improve quality standards and diversify to related

sectors: Suppliers diversifying to related sectors, such as the off-road CV, the railways

and defence industries to reduce exposure to uncertain CV demand.

OEMs balancing the need to be flexible while securing access to talent, supply chain

and technology: Set up technical centres to strengthen R&D capabilities and overcome

skill constraints.

OEMs to focus on raising after-sales service standards, while dealers adopt

measures to improve operational efficiency: OEMs encourage dealers to implement IT

systems for efficient inventory management and enable fleets to order vehicle parts and

book servicing online.

3.1 Major Developments & Investments in commercial vehicles Industry

The country's top commercial vehicle manufacturers such as Tata Motors, Eicher Trucks and

Buses, Mahindra & Mahindra and Asia Motor Works (AMW), which command a share of 83 per

cent of the domestic CV market, have together posted a growth of 28 per cent selling over

60,000 units in July. Chennai-based Ashok Leyland is yet to issue its sale numbers for the

month.

The rise in CV sales is a result of a favourable mix of several reasons such as planned execution

of scheduled infra-related works sponsored by the government and private parties, imposition of

anti-overloading law by some states and new product introduction.

http://www.business-standard.com/search?type=news&q=Asia+Motor+Works

http://www.business-standard.com/search?type=news&q=Ashok+Leyland

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Figure1: Units sold by companies

The growth, according to CV manufacturers, has come despite broader inflationary pressures,

high fuel costs and peaking interest rates even as car sales, which are more sensitive to such

reasons, buckled under pressure during the same month.

Tata Motors, the country's biggest manufacturer of light and heavy trucks and buses, posted a

growth of 14 per cent during July, selling 40,798 units in the domestic market as compared to

35,694 units sold last year.

The biggest growth driver for the Mumbai-based company was the passenger and goods carrying

light commercial vehicle range which grew by 22 per cent. Medium and heavy commercial

vehicles achieved a growth of four per cent.

Somnath Bhattacharjee, president, Volvo Trucks India and executive vice-president, sales,

marketing and aftermarket, VE Commercial Vehicles said, "The CV industry as a total is still not

impacted as the cars segment. The light and medium trucks, which generally cater to the

agricultural and service sector, have been doing well. In addition, the heavy trucks segment has

seen an uptick due to constant implementation of the compliance of anti-overloading law."

Eicher trucks and buses, a business area of the company VE Commercial Vehicles and the fourth

largest CV maker in India, posted a growth of 34 per cent in sales. The company is expecting

demand to stay high .

Mahindra & Mahindra, India's third biggest CV maker and new entrant Mahindra Navistar

Automotive (MNAL) is confident of growth possibilities and would, thus, launch more products

to maintain consumer interest. While M&M grew by 91 per cent at 13,472 units, MNAL grew by

13 per cent at 1,144 units during July.

http://www.business-standard.com/search?type=news&q=Volvo+Trucks+India

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While those heavy trucks are expected to see a minor correction in demand moving forward

other segments such as the tippers are witnessing stronger demand.

Nalin Mehta, chief operating officer, Mahindra Navistar Automotive, said, "We have been in the

LCV business for some time now, which is doing reasonably well there. We are adding to our

range in the heavy commercial vehicle (HVC) segment. Yes, the market has become a little tight,

this is a difficult scenario with fuel and finance having gone up. But we hope to do well with

further addition to the range. The school buses are witnessing good demand. We added the 25

tonne long-wheel base as well as started with 40 tonne tractor trailer."

While those heavy trucks, which ply only on highways, are expected to see a minor correction in

demand moving forward other segments such as the tippers, which are used extensively in

construction and infrastructure building areas, are witnessing stronger demand.

4. Company’s Background

4.1 VECV at a glance

This section aims to give a little bit more information about the business and the company where

the project is performed before the theoretical framework and the methodology is presented. A

more extensive description of the company and its business is presented later.

4.2 The VECV enterprise

VE Commercial Vehicles Limited is a 50:50 joint venture between the Volvo Group (Volvo) and

Eicher Motors Limited (EML). It is a partnership that brings together Global leadership in

technology, quality, safety and environmental care, along with the deep knowledge and

understanding of the Indian Commercial Vehicle (CV) market. VE Commercial Vehicles Ltd.

(VECV) owes its inception to the compelling intent of driving modernization in commercial

transportation, in India and other developing markets.

Eicher Trucks and Buses (ETB) are present in the L/MD segment with a strong presence in the

5T-12T-truck segment. Eicher‟s 15-65 seater buses have a growing presence in the LD school

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bus, staff and route-permit segments. ETB has also made strong inroads into heavy-duty trucks

segment of 16T-40T with their “VE” series of Fuel Efficient heavy-duty trucks.

ETB, completed 28 years of operations in India in the month of June 2014. The first Eicher truck

was rolled out from its manufacturing plant in Pithampur, Madhya Pradesh in 1986 and over the

past 28 years, the products have got endorsement from happy customers of over 500,000

vehicles.

Since its inception, the company‟s efforts have been towards providing value to its customers the

result of which is reflected through the growing sales numbers. In addition to being customer

centric, the geographical expanse of its service network has also ensured a dominant position for

EICHER TRUCKS AND BUSES (ETB). Eicher trucks and buses are also evidently visible in

South Asian markets of Bangladesh, Nepal and Sri Lanka. ETB plans to tap the distribution

network and the international requirements in South East Asia, Middle East and Africa.

Production capacity: 50,000 per annum

Established in: 2009 (Greenfield facility)

Products: Tipper (8T - 25T); Haulage (5T - 31T); Articulated Tractor (40T); Special

Applications; School Bus; City Bus; Staff Bus; Chassis; Gen Set Application Engines; Agro

Application Engines; Marine Application Engines

4.3 VECV Strategic Direction

To be recognized as the industry leader driving modernization in commercial transportation in

India and the developing world

Ambition to reach 100,000 unit Sales by 2015

Innovative products covering the entire product range

Comprehensive network with complete geographical coverage

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4.4 New products and segments at VECV

LMD TRUCKS

10.55 10.80 XP TIPPER 11.10XP 10.59 XP CNG

Figure2: LMD Trucks

HD TRUCKS

TERRA 25 TERRA 16XP 30.25 35.31 26ft

Figure3: HD Trucks

BUSES

SKYLINE STARLINE 10.90L CNG

Figure4: Buses

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20.15 CHASSES SKYLINE 20.15 REAR ENGINE SFL

Figure5: Buses

VECV Business Areas Components and Engineering Solutions

Eicher Engineering Components (EEC) Eicher Engineering Solutions (EES)

Strategic supplier of drive line components to Eicher

Trucks and Buses, with ambition to supply to the

Volvo Group in the future

Annual turnover of 2700 MINR / 385 MSEK in 2011.

Three production facilities: Thane, Dewas and SEZ,

Pithampur .

New plant under construction in Dewas

Annual turnover of 581 MINR / 83 MSEK in

2011.

Comprehensive product developent services

Class A surfacing, CAD, CAE, prototyping,

etc.

Supplying to Global Clients such as JCB,

TEREX, Navistar, GM, Nissan etc besides in-

house Eicher requirements.

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4.5 Time line of Eicher Motors

1948: Goodearth Company setup to sell & service imported tractors.

1958: Eicher Tractor Corporation of India Pvt. Ltd. incorporated.

1959: First indigenous Eicher tractor built at Faridabad factory.

1960: Name changed to Eicher Tractors India Ltd.

1982: Collaboration agreement with Mitsubishi for the manufacturing of Light

Commercial Vehicles signed in Tokyo.

1982: Incorporation of Eicher Motors Ltd.

1986: EML springs to operation.

1991: Eicher takes over Ramon & Demm.

1992: Eicher Tractors Ltd. selected as „Company of the Year‟ for 1990-91.

1994: EML ends technical assistance agreement with Mitsubishi.

1994: Enfield India changed name to Royal Enfield Motors Ltd.

2008: Volvo Group & EML establish VE Commercial Vehicles (VECV).

2013: VEPT (Volvo Eicher Power Train), India‟s first Euro-VI plant takes off.

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4.6 Supply Chain at VECV

A Supply Chain is a system of organizations, people, activities, information and resources

involved in moving a product or service from supplier to customer. Supply chain activities

transform natural resources, raw materials and components into a finished product that is

delivered to end customer. In sophisticated supply chain systems, used products may re-enter the

supply chain at any point where residual value is recyclable. Supply chains link value chains.

Figure.7: shows a basic model of any supply chain.

Supply Chain is broadly divided into two areas:

1) In-Bound

2) Out-Bound

In-bound is the part from vendor end to the store room and out-bound is the part from store room

to customer. Managing both sides is necessary as all the links are like bottle necks for an

industry.

Supply Chain Management (SCM) is the systematic, strategic coordination of traditional

business functions and the tactics across these business functions within a particular company

and across businesses within the supply chain, for the purpose of improving the long term

performance of individual companies and the supply chain as a whole. It has also been defined as

design, planning, execution, control and monitoring of supply chain activities with the objective

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of creating net value, building a competitive infrastructure, leveraging worldwide logistics,

synchronizing supply with demand and measuring performance globally.

Main functions of SCM are:

Production Planning and control

Inventory Management

Distribution Management

Channel Management

Payment Management

Financial Management

Supplier Management

Transportation Management

Customer Service Management

Inventory management is the overseeing and controlling the ordering, storage and use of

components that a company will use in the production of items it will sell as well as the

overseeing and controlling of quantities of finished products for sale. Since for many companies

inventory is the largest item in the current assets category, inventory problems can and do

contribute to losses or even business failures. One such inventory problem aspect is of the shelf

life of materials. Controlling inventory on the basis of shelf life is of dire need as it may lead to

line stoppage and hence the delay in product supply which in turn is reflected in the company‟s

name.

4.7 Production Planning and Control

For efficient, effective and economical operation in a manufacturing unit of an organization, it is

essential to integrate the production planning and control system. Production planning and

subsequent production control follow adaption of product design and finalization of a production

process.

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Production planning and control address a fundamental problem of low productivity, inventory

management and resource utilization.

Production planning is required for scheduling, dispatch, inspection, quality management,

inventory management, supply management and equipment management. Production control

ensures that production team can achieve required production target, optimum utilization of

resources, quality management and cost savings.

Planning and control are an essential ingredient for success of an operation

unit. The benefits of production planning and control are as follows:

It ensures that optimum utilization of production capacity is achieved, by proper

scheduling of the machine items which reduces the idle time as well as over use.

It ensures that inventory levels are maintained at optimum levels at all time, i.e. there is

no over-stocking or under-stocking.

It also ensures that production time is kept at optimum level and thereby increasing the

turnover time.

Since it overlooks all aspects of production, quality of final product is always maintained.

Production Planning

Production planning is one part of production planning and control dealing with basic concepts

of what to produce, when to produce, how much to produce, etc. It involves taking a long-term

view at overall production planning. Therefore, objectives of production planning are as follows:

To ensure right quantity and quality of material, equipment, etc. are available during

times of production.

To ensure capacity utilization is in tune with forecast demand at all the time.

A well thought production planning ensures that overall production process is streamlined

providing following benefits:

Organization can deliver a product in a timely and regular manner.

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Suppliers are informed will in advance for the requirement of materials.

It reduces investment in inventory.

It reduces overall production cost by driving in efficiency.

Production planning takes care of two basic strategies, product planning and process planning.

Production planning is done at three different time dependent levels i.e. long-range planning

dealing with facility planning, capital investment, location planning, etc.; medium-range

planning deals with demand forecast and capacity planning and lastly short term planning

dealing with day to day operations.

Production Control

Production control looks to utilize different type of control techniques to achieve optimum

performance out of the production system as to achieve overall production planning targets.

Therefore, objectives of production control are as follows:

Regulate inventory management

Organize the production schedules

Optimum utilization of resources and production process

The advantages of robust production control are as follows:

Ensure a smooth flow of all production processes

Ensure production cost savings thereby improving the bottom line

Control wastage of resources

It maintains standard of quality through the production life cycle.

Production control cannot be same across all the organization. Production control is dependent

upon the following factors:

Nature of production (Job oriented, service oriented, etc.)

Nature of operation

Size of operation

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A planning system starts with a forecast of future demand over some forecast horizon of length

H periods. The long-term portion of this forecast is an input into a capacity and/or aggregate

planning module that assesses whether or not there is sufficient capacity to satisfy the demand

forecast.

Four common ways

Seasonal demand, one might develop an aggregate production plan that builds inventory

during the off season in anticipation of a seasonal demand peak.

Second, the mismatch might be addressed by adding to or augmenting current capacity, for

instance through overtime or subcontracting.

Third, when it is not possible to build anticipation inventory or add capacity, one would

delay meeting demand. This is usually done in terms of extending the backlog by quoting

8longer and longer delivery lead times to customers.

Finally, there may be some downward revision of the forecast so as to eliminate the gap

between the firm‟s supply capacity and the anticipated demand; this might be an outcome

from a sales and operations planning (S&OP) process that equates the forecast to a sales

plan and then aligns the sales plan to the production plan

The next step is to convert the forecast over the shorter term into a detailed master production

schedule, subject to the guidelines or constraints from the aggregate capacity plan. The aggregate

capacity plan determines, at a gross level, how and when customer demand is met. Given the

aggregate capacity plan and the current finished goods (FG) inventory, the master production

schedule determines the necessary production output to meet the demand forecast over the short

term. Relative to the aggregate capacity plan, the master production schedule is at a much more

detailed level, both in terms of products and time periods. In some contexts, production lot or

batch sizing is done as part of the master scheduling, so as to account for economies of scale in

the production process. Also, there is sometimes an additional iteration to check the feasibility of

the master schedule relative to the available capacity.

To determine the inputs into the production system, we need to convert the master production

schedule into a plan for the raw materials (RM) and intermediate products. This is traditionally

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done with the logic of materials requirement planning (MRP), based on a bill of materials and

process recipes for each final product. The key assumption is that we have planned lead times for

each required activity to produce the product; that is, for the procurement of each raw material,

as well as for each process and transportation step, we assume that the activity takes a known

deterministic amount of time, termed the planned lead time. With this assumption, we can

readily translate the master production schedule into time-phased requirements for each of the

raw materials, intermediate products and subsystems required to produce each final product. For

the raw materials, these requirements trigger replenishment requests from outside suppliers. For

the intermediate products and subsystems, these requirements are input to the shop floor control

system, which determines the work releases into production and the job priorities throughout the

production system. Again, these decisions are based on and guided by the planned lead times for

the process steps in the production operation.

Most implementations for production planning systems make no effort to recognize the

uncertainty in their environment. Indeed, in many planning systems that I have observed, there is

limited, if any, attempt to track and measure the uncertainty in the demand forecast or the

replenishment processes. For instance, we find that most planning systems do not retain and

measure forecast errors

Once a forecast has been revised, we observe that the old forecast is written over by the new

forecast, and the old forecast is lost. As a consequence, there is no record from which to measure

the forecast errors. Similarly, we still find implementations of planning systems that do not track

the actual replenishment times from suppliers, although this is slowly changing as lead-time

performance becomes a more common metric in supply contracts. The execution component of

most planning systems now has the capability to track the actual flow times within the

production operations; however, again we seldom see this data used to understand the

uncertainty in these processes. On the other hand, yield data does get recorded more routinely,

and at least the statistics on average yield seem to be more routinely used in the planning

systems.

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4.7.1 Steps followed

Initially PPC department shares the production schedule with all the concerned

departments. This production plan is for 3 months, in which schedule of first month is

fixed while the schedule of next 2 months is tentative. Based on this plan, buyers procure

the material.

Vendor will dispatch the parts according to the schedule which is given by the buyers

based on the production plan.

Raw material arrives at Material Gate.

If material comes from warehouse then in that case only Eicher vehicles are allowed.

Vehicles of other companies are allowed in only 2 cases:-

o If that types of vehicles are not produced by Eicher.

o Or if that vehicle is coming from too far.

GE number is prepared at material gate after confirming shortages.

Material arrives at Unloading Dock with Bar code label specifying GE number and ASN

number.

TVS employee checks packaging standard of each part number by searching in files

containing hard copies of each part number.

TVS employee also checks for actual quantities, defect, and storage location specified

etc.

TVS employee scans the bar code that automatically creates GR number and sends one

copy of Invoice to Excise and 1 copy to Finance Department.

Material is taken inside CMS and stored at specific location allotted to it.

Based on the BOM and production plan, material will be released to the production line.

And after assembly and inspection, vehicle will be finally dispatched.

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4.8 Functions of Procurement & Logistics

The Procurement & Logistics department negotiates and manages contracts with third party

suppliers for the acquisition of everything that a company needs to carry out its operations,

within time, in full and under competitive competition and pressure.

Procurement is the act of obtaining or buying goods and services. The process includes

reparation and processing of a demand as well as the end receipt and approval of payment. It

often involves

(1) Purchase planning,

(2) Standards determination,

(3) Specifications development,

(4) Supplier research and selection,

(5) Value analysis,

(6) Financing,

(7) Price negotiation,

(8) Making the purchase,

(9) Supply contract administration,

(10) Inventory control and stores, and

(11) Disposals and other related functions.

The process of procurement is often part of a company's strategy because the ability to purchase

certain materials will determine if operations will continue. A business will not be able to survive

if it is price of procurement is more than the profit it makes on selling the actual product.

Logistics is the coordination of projected requirement, procurement, physical movement, and

storage of components, parts, raw materials, and semi-finished and finished goods, to achieve

optimum demand-service level at minimal cost. It includes both inbound and outbound

movements, and is a larger concept than distribution management which does not include

activities such as forecasting and procurement.

26 | P a g e

5. Project 1: Study the variations in the demand pattern of vehicles and

analyze its effect on production planning.

5.1 Objective of the project The objective of the project can be divided into two parts.

Phase1

a) Understanding the current production planning system of the company.

b) Studying the monthly and weekly variations in the demand of different models.

c) Ascertain the data collection techniques and data requirement.

d) Data collection

Phase2

e) Data analysis

f) Recommendations

g) Report Making

5.2 Research Methodology

The project is carried out at Volvo Eicher commercial vehicles Ltd. Pithampur Plant, Indore. The

entire project comprised of the following major steps.

Identifying Management Dilemma: Triggers need for decision and symptoms of actual

problem. As per the discussion, it was found that for some of the models high

fluctuations in the demand made it difficult for the PPC department to plan their

production and lead to huge inventory being piled up.

Study the major sources of uncertainty in the marketing plan, realizing these uncertainties

and how these uncertainties affected the production plan.

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Discuss the current production planning system framework for providing a basis for the

subsequent discussion and critique of production planning under uncertainty.

Data Collection: Primary data and Secondary Data. A mix of primary and secondary data

was used for the project..

Editing of data: To ensure consistency in the data and reduces recording errors.

Data Analysis & Interpretation: Managers need information not data. Develops

summaries, look for patterns by application of statistical tools, relationship among

variables. Making a series of observations on the generic treatment of uncertainty in

production planning in practice and understanding whether the current system accounts

for the uncertainty in the production plan.

Finally, identifying a set of tactical decisions that are being viewed as being critical for

handling uncertainty in production planning and describe how these tactics can be

incorporated into production planning systems as proactive countermeasures to address

various forms of uncertainty.

Reporting Results: Necessary to report and transmit the findings & recommendations to

managers for the intended purpose of decision making. Report should be developed from

the client‟s perspective.

28 | P a g e

1 • Identifying Management Dilemma

2 • Study the the current production planning system

3 • Study the major sources and types of uncertainty in the marketing plan

4 • Data Collection and data cleasing

5 • Look for patterns , relationship among variables. and make a series of

observations on the generic treatment of uncertainty in production planning in practice.

6

• Identifying a set of tactical decisions that are being viewed as being critical for handling uncertainty in production planning and reporting results

29 | P a g e

5.3 Current Production Planning System

INPUT PROCESS OUTPUT

1.2 Introdu

1.2.1 Ba

Marketing plan

released on 25th,

6th

and 15th of

the current

month

Review the plan for the

confirmed vehicles and the

tentative requirement

Week wise planning and

send the plan to all the team

members

Release the EDD of

monthly plan to mktg team

Convert the monthly RO

map into N+2 RO plan by

discussing with the

materials for any change in

RO sequence as per material

confirmation

Continuous monitoring and

ensuring that RO is

according to the EDD

Material

confirmation

received from

materials

department for

plan execution

Shortage list generated by

the store

Bulky items-1/2day

Rest of the items-N+2

days

Capacity planning and shift

planning

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Analyze the problem so that

RO takes places according

to the EDD Back flushing in

SAP

OK Tagging

Delivery of the vehicle

Actual RO

Yes No

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5.4 Study Approach

Figure8: Study approach

To get deep insights and study the variations in the demand pattern of various models of trucks

and busses the demand of these models was subdivided under the three classifications of Sales,

,BS and Brakes. Under each of these categories a detailed analysis was done to understand how

the demand fluctuated based on the three plans received by the PPC team.

Under the sales subcategory there were three classifications domestic, institutional and export.

Similarly the Brakes category was further subdivided into hydraulic, air, MCV and HCV. Under

the BS category it was divided into BS1, BS2, BS3 and TCI to get better insights of the

fluctuations in the demand.

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5.5 Data Collection Methods

The data collection methods explain how the data in this research has been collected and has

been used to do further analysis.

5.5.1 Primary Data Primary data is data that is collected for the first time, i.e., the data did not exist before the

collection. Primary data was collected by observations and informal interviews to understand the

current production planning system. The entire approach towards the project was data based.

5.5.2 Secondary Data

Secondary data consists of data, which has been collected from VECV‟s system that contains

the complete one year demand of different models of truck and busses models under various

classifications.

The complete analysis was done using MS EXCEL tool.

The following format was used to collect and analyze data.

Figure9: Data collection format

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5.6 Observations

I-Represents the demand for the vehicles received on 25

th

II-Represents the revised plan on 5th

III-Represents the revised plan on 15th

+

Graphs 1: Shows the variations in demand in I,II and III period

The above graph represents the combined demand of 2014 for all the models received on 25th

, 5th

and 15th

of every month.

38750

35771

34798

32000

33000

34000

35000

36000

37000

38000

39000

40000

I II III

No of vehicles demanded in I , II, III period

I-25th

plan

II-5th

Plan

III-15th

Plan

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Graphs 2: Month wise variations in demand in I Period

Graphs 3: Month wise variations in demand in II Period

Graphs 4: Month wise variations in demand in III Period

The above graphs represents the moth wise fluctuations in demand based on I ,II and III plan.

M1 M2 M3 M4 M5 M6 M8 M9 N10 N11 N12

Total 3013 3108 3175 4380 4522 3152 3692 2522 3010 2824 2373

0

1000

2000

3000

4000

5000

I

M1 M2 M3 M4 M5 M6 M8 M9 N10 N11 N12

Total 3115 3198 3989 4158 4335 3720 3750 3516 3205 2660 3104

0

2000

4000

6000

II

M1 M2 M3 M4 M5 M6 M8 M9 N10 N11 N12

Total 3038 3114 3220 4423 3900 3359 3478 2286 2988 2554 2438

0

1000

2000

3000

4000

5000

III

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Graphs 5: Sales variations

TERRA 25 BOGI

Graphs 6: Monthly variations for Terra 25 Bogie

0

2

4

6

8

10

12

I II III I II III I II III

Domestic Export IS

Av

er

ag

e v

alu

e

Plan based on country

10

20 20

10 10 10

21 21

10

50

35 35 41

28 28 30

21

36 30

25 25

10 10 10

0

25

18

7 10 10

15 21

7

0

10

20

30

40

50

60

I II III I II III I II III I II III I II III I II III I II III I II III I II III I II III I II III

M1 M2 M3 M4 M5 M6 M8 M9 N10 N11 N12

Domestic

I 33835

II 30265

III 29254

Export

I 4279

II 4779

III 4880

IS

I 544

II 727

III 664

36 | P a g e

TERRA 25

Graphs 7: Monthly variations for Terra 25

13 18 18 15

25 25

75 70

64

85 85 85

50

15 21

14

22 27

67

82 82 87

65 60

47 47 47

34 41 41 40

49

36

0

10

20

30

40

50

60

70

80

90

100


M1 M2 M3 M4 M5 M6 M8 M9 N10 N11 N12

III III III III III III III III III III III

M1 M2 M3 M4 M5 M6 M8 M9 N10 N11 N12

Sum of QUANTITY 18 25 64 85 21 27 82 60 47 41 36

Sum of PRODUCTION 31 11 64 80 21 27 78 60 47 42 83

0

10

20

30

40

50

60

70

80

90

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Graphs 8: Planned Vs actual production for Terra 25

TERRA 16

Graphs 9: Monthly variations for Terra 16

Graphs 10: Planned Vs actual production for Terra 16

112 104 104

85

35 40 42 37 42 31

16 16

45 37 37 37

15 22

50

75 75 70 67 67 53

79 79

25

56 56

33

79

140

0

20

40

60

80

100

120

140

160


M1 M2 M3 M4 M5 M6 M8 M9 N10 N11 N12

III III III III III III III III III III III

M1 M2 M3 M4 M5 M6 M8 M9 N10 N11 N12

Sum of QUANTITY 104 40 42 16 37 22 75 67 79 56 140

Sum of PRODUCTION 145 39 42 16 39 24 75 67 82 73 86

0

50

100

150

200Planned Vs Actual production

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Graphs 11: Sales variations for Terra 16

10.50

Graphs 12: Monthly variations for 10.50 model in BS3 and BS4category

I II III I II III

Domestic Export

Total 7.552238806 7.314285714 7.128571429 2.961538462 3.034482759 6.172413793

012345678

Sales


M1 M2 M3 M4 M5 M6 M8 M9 N10 N11 N12

BS4-CRDI 0 7 7 9 9 9 5 4 4 11 11 11 19 20 17 3 3 3 0 0 0 41 41 2 2 2 0 4 4 1 0 10

BS-3 Mech 7 63 57 62 79 79 82 45 55 70 81 83 13 11 76 96 69 74 72 64 64 61 43 43 64 46 46 37 36 33 15 11 7

0

50

100

150

200

250

BS4-CRDI

BS-3 Mech

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Graphs 12: Sales variations for 10.50 model in BS3 and BS4category

10.59

Graphs 13: Monthly variations for 10.59 model


Domestic Export IS

BS4-CRDI 151 156 163 1 47 47

BS-3 Mech 662 614 569 37 38 48

0

100

200

300

400

500

600

700

800

900Sales

BS4-CRDI

BS-3 Mech

58 62 58

30 27 26

54 57 64

37 44

34

70 63

50

76 79 80

54 50 49 44 57 57

20 18 18 8

18 15

38 27 31


M1 M2 M3 M4 M5 M6 M8 M9 N10 N11 N12

0

20

40

60

80

100

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Graphs 14: Sales variations for 10.59 model

10.35(8X2 cab)

Graphs 15: Monthly variations for 8X2 cab

Graphs 16: Sales variations for 8X2 cab

I II III I II III

Domestic Export

Total 228 220 227 261 282 255

050

100150200250300

Sales


M1 M2 M3 M4 M5 M6 M8 M9 N10 N11 N12

BS3 27 17 17 45 42 42 85 90 85 20 20 20 11 12 12 35 21 54 95 65 65 14 34 34 0 0 0 0 0 0 4 2 12

VEPT 3 0 3 17 17 17 10 10 10 1 5 5 0 0 0

0

50

100

150

200

250

BS3

VEPT

731

571 601

14 28 36 0 1 1 31 32 35

0

200

400

600

800


Domestic Export IS

BS3

VEPT

41 | P a g e

35.35(8X2 cowl)

Graphs 17: Monthly variations for 8X2 cowl

Graphs 18: Sales variations for 8X2 cowl

10 10 10

20 20 20

50 55 55

70 67 67

62

47 47

65

50 55

45

37 37

30

5 5

20 20 20

5 5 5

15

40


M1 M2 M3 M4 M5 M6 M8 M9 N10 N11 N12

0

10

20

30

40

50

60

70

80

345 322 331

32 9

30

0

50

100

150

200

250

300

350

400

I II III I II III

Domestic Export

Sales

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Calculation for optimum Inventory level for components with low shelf life

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The above diagram shows a matrix multiplication where we have initially assumed that

whatever was bought was consumed.

44 | P a g e

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6.Project 2: To develop a system for identification and management of trolleys

so as to reduce incurred production losses.

Non Availability

Occupancy –availability

OEE (Overall Equipment effectiveness) - Health of Trolleys

Traceability

6.1 Need & Scope of Project

In this project:

A system of identification of various trolleys by putting a red tag on them will be

developed.

A digital information system for trolley calling will be proposed.

Trolley classification on the basis of their health shall be done.

6.2Capital Asset and Capital Asset Management

A capital asset is defined to include property of any kind held by any possessor, whether

connected with their business or profession or not connected with their business or profession. It

includes all kinds of property, movable or immovable, tangible or intangible, fixed or circulating.

Trolleys for material movement are a capital asset of any company and they need to be managed

properly for better productivity.

6.3 Current scenario in VECV

Material movement in VECV is done in either:

Trolleys

Steel Pallets

Wooden Pallets

46 | P a g e

Major losses up to 50% were faced due non availability, supply delay etc. of trolleys.

For identification:

If “VECV – XXX – VECV” is painted, then it is property of VECV, else”XXX – VECV

– XXX” is painted on all outgoing trolleys (Figure 8).

Trolley details like, part number and name, quantity and visually, the way of storing are

painted on new trolleys only (Figure 9).

For area identification, color coding on top rack is done.

No proper system support present, only in-warding and out-warding details can be

gathered.

Fig8.Owner Identification of Trolleys Fig.9 Details on New Trolleys

Table10: Enlists the various trolley storage areas along with their color coding and the floor area.

47 | P a g e

Table 10: Trolley areas, space available and color coding

*Approx Values of Space Available

Washing & Maintenance

Separate areas for bin and trolley washing.

Bin washing is done in a washing machine, but grease, chemicals stains are removed

manually.

No proper system support and records for trolley movement and maintenance.

6.4 Concepts of 5s

5S is the name of a workplace organization method that uses a list of five Japanese words: seiri,

seiton, seiso, seiketsu, and shitsuke. Transliterated or translated into English, they all start with

the letter "S". The list describes in order, how to organize a work space for efficiency and

effectiveness by identifying and storing the items used, maintaining the area and items, and

sustaining the new order.

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Seiri (Segregation)

It means to look around the work place and to sort out the use-full and non-use-full items.

The non-use-full items should be checked for use-fullness and then disposed off properly.

In no case, the on-use-full items be kept near the workplace.

Seiton (Systematic Arrangemet)

All the items, which are necessary, should be kept according to a fixed arrangement from

where they can be most conveniently retrieved and used. All the useful things should be

kept in proper order. In other words “A Place for Everything and Everything in its Place

(PEEP)” should be strictly followed

Seiso (Shine)

The work area along with all the equipment‟s should be properly cleaned. Ideally the

floor should be sparkling clean. It should not be the duty of any one specific person, but

all the people associated with that area.

Seiketsu (Standardize)

Standardization of best practices in the work place. It is the maintenance of Seiri, Seiton

and Seiso constantly. If standardization is not done and followed properly, then work

place is bound to deteriorate.

Shitsuke (Sustain)

Shitsuke is to install work practices that will ensure and enable the implementation of all

the aspects of 5-S.Everyone should be self-disciplined to strictly follow the rules and

standards while working. All the set rules like punctuality should be strictly followed.

Applying these concepts definitely improves the productivity of the machines and people. Hence,

to improve trolley problems, these concepts have been used.

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6.5 Suggested Solutions

The following solutions are suggested:

Seiri: the first step is to identify the bad trolleys/pallets and separate them from the good

ones. If the bad trolleys could be mended or made to use somehow, then it should be done,

else they shall be written off from the company.

For all the good trolleys, “5s Red Tagging” must be done. It will not only identify various types

of trolleys, but also give a good count and better traceability (fig 15).

Fig 11 5s Red Tag for Trolleys

Seiton: After “Red Tagging”, a clear data of frequency of movement of all the trolleys can

be gathered easily. Then accordingly, proper floor area division for filled and empty

trolleys can be demarcated easily. For system support in SAP, a digital information system

for trolley calling at various locations can be developed. This will help in effective

movement of all the trolleys as well as their traceability.

Seiso: Since currently, no proper cleaning system is present, it is suggested that all the

trolleys should be mandatorily be sent for service every six months, over a period of 2

weeks. Repainting should be done every alternate year. Moreover, in SAP a classification

of trolleys on their health shall be done as follows: Superb, Satisfactory and Unpleasant.

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Seiketsu: PFMEA for trolleys handling for critical and fragile parts should be done.

Along with this, the Overall Equipment Effectiveness (OEE) and Mean Time Between

Failure (MTFB) should be calculated.

OEE = Availability * Performance * Quality

Also, since there is no standard documentation for trolleys, a new documentation similar

to PPAP should be developed, signed between Stores Engineering, Stores Management

and Stores In-Charge.

Shitsuke: Sense of ownership should be developed in all the individuals related to stores.

The 3 PL people should be the first line of defense in case of a breakdown. Surveillance

through CCTV cameras by a trusted person should be done and finally, accolades to the

workers with best trolley health should be given

6.6 Conclusion

Implementing the above solutions is definitely bound to improvement in the line loss incidents

occurring due to trolleys. Though it may be difficult initially, to incorporate the above mentioned

solutions, but once done it will drastically help the company.

6.7 Further Steps

The next step is execution. For that the heads of stores, engineering, TVS etc will sit

together.

A person completely responsible for the trolleys (specifically from TVS) will be decided

upon.

Red tagging of all the trolleys at CMS entrance from plant will be done (say within 2-3

days).

General records & physical maintenance will be done from the red tags.

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7 Project3: Design a data dashboard to improve the visibility and make data

visualization simpler for PPC team.

7.1 Objective of the project

The objective of this project is to identify various aspects of production planning and display

them using dashboard tool so as to improve visibility and make data visualization simpler. The

dashboard is prepared using inputs from the production planning and control department. As per

the current system the data is being recorded in SAP and the individual team members extracts

data as per need and carries out analysis. So this process is more time consuming and the

analysis is carried out at month end. To improve this process and increase the efficiency of the

supply chain as well as employee, we have to identify the parameters those will act as lead

indicators and provide multidimensional visual representation of data that will reduce the time

spent by the team in analyzing data and taking decisions. This project will help to reduce the

non-value added time wasted by PPC team to compile it into a form on which decisions could be

taken. Effective decision-making is based on having the right information available and easily

accessible.

7.2 Need of the project

To achieve this visibility it is essential to develop a tool that will provide a complete overview of

the key performance indicators and other parameters that are useful in analyzing and studying the

changes in production plan. Dashboard is tool through which this information can be displayed

in an effective and an easy manner. The dashboard must efficient to provide the SCM with

different aspects of production plan, thus providing an improved visibility.

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7.2.1 Benefits of dashboard are:

Improved data visibility

Time saving process

Eliminate redundant operations (duplicate folders, workbooks, etc.)

Increased productivity and efficiency of employee

Makes decision making easy

The major aspects that should be included in dashboard are:

Marketing plan variations

o Projections as well as actual roll out of HD and LMD

o Monthly Plan variations wrt 25th

Plan and 3rd

Plan for HD and LMD

o Date wise addition and deletion of the components

Direct runner and Delivery precision for HD and LMD

Line utilization and various types of losses

Monthly roll out for HD and LMD\

Budgeted vs Actual roll out

Day wise plan changes

7.2.2 Expected project deliverables:

Once the project is successfully completed it is expected to deliver the following:

A dashboard.

The dashboard will incorporate Key performance indicators that will support decision

making process.

Display of data graphically and tabular form for easy analysis, comparison.

Better visibility

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Displays trends of performance with respect to target that will simplify decision making.

Provides real time trend analysis

A standardize data visibility and analysis approach.

Highlight grey areas to management which requires attention.

7.2.3 Project Plan

1 •Understanding the need of the project

2 •Study on dashboards. and PPC system of the comapny

3 •Gathering requirements and expectations from users and identifying the KPI'S

4 •Developing of data needed for preparing dashboard

5 •Initiate designing of the dashboard in excel

6 •Finalizing the outlook of the dashboard in excel

7 •Identify possible flaws and problems

8 •Fix and improve problems in dashboard outlook

9 •Testing of final dashboard

10 • Training to end user about the dashboard usage

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7.3 Dashboards

Mr. Hans Peter Schaefer from The Gillette Company once said, “I want a supply-chain

dashboard that looks like the dash in my 911 Carrera, with all of the dials set to my specific

supply-chain metrics. And when any one goes out of tolerance, I want the dial to redline and let

me drill into the specific issue, and resolve it”. This is the role played by a dashboard, i.e. to

provide a complete inventory visibility to the management to simplify the decision making

process and monitoring the inventory for its performance.

A dashboard basically provide the user with the trends of various performance measures based

on the requirement of the user, these trends are updated on a real time basis simplifying the

decision making process for the user. Stephen Few‟s defined dashboard as, “A dashboard is a

visual representation of important parameters that are essential to achieve organizations goals,

these parameters are put together and displayed on single screen, to attain effective decision

making”, (2006,34).

Alexander and Walkenbach, stated that there are three main characteristics of dashboard (2010):

Dashboards are mostly graphical, providing visual representation of important trends,

comparisons and exceptions.

It displays only the information desired by the user

Dashboards are designed towards a specific goal or purpose with predefined conclusions

and essentially reduce the need of its user to perform an analysis regarding the

information.

Dashboard is not a report that just provide data to the user, it is basically an analysis tool

that represent the data in more concluding way that makes decision making easier for the

user.

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Dashboards can be classified as per the role in the project. The role will be to support the

business activities. The dashboards are classified into 3 types.

Strategic: These dashboards provide managers with quick view of the organizations

health. The display performance measure and forecasts. Strategic dashboards benefit

from static snapshots of data (daily, weekly, monthly, and quarterly) that are not

constantly changing from one moment to the next. They help track progress of attainment

of strategic objectives. (eg. Balanced Scorecard)

Analytical: Analytical dashboards include more context, comparisons, and history. These

dashboards support more data interaction like drilling down into details. They are used to

analyze the performance and measure the performance level towards achieving goal.

Operational: Operational dashboards are used to monitor operational processes, events,

and activities as they occur (every minute, hour, or day).

The above mentioned types of dashboards are only a framework that describes these three

dashboard types. Wayne Eckerson says in his book that it is not necessary to determine

which type of dashboard you want to build before beginning a project. In reality, many

dashboards don‟t fit cleanly within the boundaries described. The purpose of this

framework is to help you understand the various purposes for which dashboards are built

and the range of functionality that they can exhibit, (2010, 121).

7.3.1 Dashboard Designing

The most important step in the development and designing of the dashboard is to

understand the user needs. This includes identifying the KPI‟s which need to be

incorporated into the dashboard, what output to be displayed, how the dashboard should

appear, information sources, performance measures, etc. These inputs acts as a database

for the dashboard to function. These are the data source which contains all the

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information that is made visible to the user in more informative way. The dashboard must

be designed in such a way that it should simple and easy to interpret.

According to Eckerson, (2010) there are some points that should be taken into

consideration while designing of the dashboard. These are as follows:

Identify the requirements and data.

Understand the user requirements & expectations.

Take account of the design principles

Develop a prototype.

Test the dashboard for its functionality and efficiency.

Identify improvements

Perform corrective action and finalize the design

Eckerson has also mentioned two important points on dashboard designing: the first is on

creation of display and the other is on chart design. The following things should be taken into

consideration while creating display:

There should not be too much data displayed as it may create confusion.

Design an outlook that will have a single screen to display information.

Keep charts as simple as possible.

Display only important data that will give maximum of information.

Arrange the charts/ tables more intelligently and sequentially linked.

The following things should be taken into consideration while designing charts:

Comparing data should be easier.

Provide options to toggle between table and charts.

Provide slicing dicing options to represent data that is required.

Use the right graph as per the data and outcome expected from it.

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7.3.2 Design Principles for Dashboard

Below are some principles which were described by Alexander and Walkenbach, (2010, 17).

These principles also correlate to the guidelines described in dashboard design:

Avoid unnecessary information in chart

No gridlines

No borders

Skip usage of trend lines

Avoid unnecessary usage of data labels

Remove unnecessary legends and templates

Keep formatting as simple as possible avoid complications

Do not keep axis that doesn‟t add value

Avoid usage of color and background fills.

Avoid using clip arts or pictures

Have a layout and placement of data that draws focus, study shows that user pays

attention to the upper left and middle left of a document.

Display monetary values only where required.

Use separators like comma between numbers

Effective usage of titles and labels:

Include timestamp

Have some text that provides information when the data was extracted

Use descriptive titles

Dashboard should be user friendly

Navigation should be easy

It should reflect data on real time basis

Data displayed should be of high accuracy and error free

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7.4 Software’s required for the project

Microsoft Excel

Microsoft excel is a spreadsheet application provided by Microsoft. It has basic features that has

cells arranged in rows and columns forming a spreadsheet in which desired formulae‟s can be

put up to organize data as required. Excel can be used to perform various mathematical

operations as well as for data representation. Various types of charts can also be made using

excel.

As per the current system data is extracted from SAP and excel is used to study the data by

preparing desired charts. Excel is flexible and dashboards can be prepared in excel as per the

user requirements

7.5 Solution Requirements (Dashboard)

In order to make the dashboard successful many inputs are required. These inputs are essential to

carry out the inventory management at. This information will be displayed on to the dashboard

for effective monitoring and management. A thorough study and requirements identification was

done to define the parameters that will the form output of the dashboard. By reviewing the

factory that will have an impact on production planning and expectations of the user, we have

classified these into

Monthly variations in the marketing plan.

Number of vehicles added and deleted wrt 25th

and 3rd

/5th

plan for every month.

Day wise details of the addition and deletion of the vehicles.

Monthly details of line utilization and losses.

Direct runner and delivery precision details for both Heavy duty and Light and Medium

duty vehicles.

Budgeted v/s Actual roll out.

Plan change for each day.

59 | P a g e

7.6 Data input Analysis

7.6.1Marketing Plan

On the 25th

of every month the PPC department gets a requirement of the number of vehicles to

be produced from the marketing team. Based on that data production planning is done to meet

the demand of the customer at the right time. But this demand suffers a high fluctuation for both

HD and LMD models and these fluctuations in the demand affects the production planning, line

utilization, manpower utilization and the inventory. So the dashboard will provide a complete

overview of the month wise variations in the marketing plan for HD and LMD vehicles, monthly

addition and deletion of vehicles wrt 25th

and 3rd

/5th

Plan as well as day wise addition and

deletion of the vehicles for each month

7.6.2Dashboard view of parameters

Below are dashboard views of the parameters identified .

Graphs 19: Delivery Precision graph for HD

60 75

67 59 56

43 41

5

56

75 67

59 55 44

56 56 43 41

5 0

10

20

30

40

50

60

70

80

20

11

20

12

20

13

20

14

Q1

20

14

Q2

20

14

Q3

20

14

Q4

Jan

'14

Feb

'14

Mar

'14

Ap

r'1

4

May

'14

Jun

;14

Jul'

14

Au

g'1

4

Sep

'14

Oct

'14

No

v'1

4

Dec

'14

Delivery Precision HD

60 | P a g e

Graphs 20: Delivery precision showing Quarterly actual Vs targeted comparison

Graphs 21: Delivery precision showing Yearly actual Vs targeted comparison

The above graphs shows a comparative analysis of the actual Vs targeted value of Direct runner and

Delivery precision for HD and LMD vehicles. This will help the user to make yearly, quarterly and

monthly comparative analysis.

5

56

75 67

50 50 50 50

0

10

20

30

40

50

60

70

80

2014 Q1 2014 Q2 2014 Q3 2014 Q4

Actual Target

60

43 41

50 50 50

0

10

20

30

40

50

60

70

2011 2012 2013

Actual Target

61 | P a g e

Graphs 22: N-3 and N-6 days compliance for HD and LMD

The above graph shows N-3 and N-6 days compliance for both HD and LMD vehicles. It means

that the production planning team fix a duration of 6 and 3 days for HD and LMD vehicles

respectively after which the specifications of the product can‟t change

44 54 56

66 77 78

34

78

56

78

98

44 54 56

95 95 95 95 95 95 95 95 95 95 95 95 95 95

0

20

40

60

80

100

120

2013 2014 Jan'15 Feb'15 Mar'15 Apr'15 May'15 Jun'15 Jul'15 Aug'15 Sep'15 Oct'15 Nov'15 Dec'15

LMD N-6 days plan adherence

Actual

Target

62 | P a g e

Graphs 23: Marketing plan showing projections for LMD and HD

Graphs 24: % variations from the market wrt 25th

and 5th

plan for LMD and HD

2360 2343

4322

2223

3432

2267 2289 2311 2333 2355

572 579 586 593 453

988

614 621 628 635

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

15th 25th Nov 1stPlan

25th Nov2nd Plan

28-Nov 04-Dec 05-Dec 11-Dec 12-Dec 20-Dec 23-Dec

LMD PROJECTIONHD PROJECTION

oct'13 Nov'13 Dec'13 Jan'14 Feb'14 Mar'14 Apr'14 May'14 Jun'14 July'14 Aug'14 Sept'14 Oct'14 Nov'14 Dec'14

wrt 25th Plan 72 54 65 32 43 23 43 43 45 67 66 55 90 34 56

3rd/5th Plan 45 67 66 55 90 34 56 72 54 65 32 43 23 43 43

0

10

20

30

40

50

60

70

80

90

100 Variations(addn/deletion)

63 | P a g e

Graphs 25: Number of vehicles added and deleted for LMD and HD

Graphs 26: Graph showing the monthly variations in the various line losses and utilization

2.2 2.3 2.5 2.4

2.6 2.7 2.8

0.5

4.9

2.2

3.7

4.1

5.1

0

1

2

3

4

5

6

Jan Feb Mar March April May Jun Jul Aug Sep Oct Nov Dec

64 | P a g e

This line graph provides us month wise details of the various losses like material-NPD, material-

Regular, MFG, Piloting etc. and line utilization. Based on the model (LMD and HD) and the year

the user can extract information and understand the trend for further analysis.

Graphs 27: Graph showing the monthly Roll out for HD and LMD

The above graph shows the Roll out analysis for HD and LMD vehicles. User can understand the

yearly and monthly variations in the Roll out for vehicles.

7.7 Conclusion

A data dashboard for Production Planning and Control

The dashboard includes KPI‟S that will support decision making process

Display of data graphically and tabular form for easy analysis and comparisons.

There will be a multidimensional display of information.

Displays trends of performance with respect to target that will simplify decision making.

A standardize data visibility and analysis approach in the PPC team Highlight grey areas

to management which requires attention.

65 | P a g e

8.References

http://www.ibef.org/industry/india-automobiles.aspx

http://en.wikipedia.org/wiki/Automotive_industry_in_India

http://business.gov.in/Industryservices/automobile_industry.php

Caridi et al. (2010), “Measuring visibility to improve supply chain performance: a

quantitative approach”, Benchmarking: An International Journal, Vol. 17, No. 4, pp. 593-615.

Francis, V. (2008), “Supply chain visibility: lost in translation?”Supply Chain Management: An

International Journal, Vol. 13, No. 3, pp. 180-184.

Russell,S.R & Taylor,W.B.(2011),”Operations Management”,New York,7th Addition,John

Wiley & Sons,Inc.

http://business.gov.in/Industryservices/automobile_industry.php

66 | P a g e

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