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Get obsessed with Quality Sandeep Sinha 29-06-2016 Public
Get obsessed with Quality
Sandeep Sinha
29-06-2016
Public
Agenda
Market Outlook
India ABO Performance
India ABO business and organization structure
Opportunity for Suppliers
Cummins’ Quality Journey
Your support
2
Agenda
Market Outlook
India ABO Performance
India ABO business and organization structure
Opportunity for Suppliers
Cummins’ Quality Journey
Your support
3
4
7.5 7.6 7.7 7.7 7.5 7.7
2016F 2017F 2018F 2019F 2020F 2021F
GDP Growth rate – India (%)
Increase in Govt. spend
Government’s intent to increase investment in
infrastructure is moving the economy on the
intended path
Steady decline Power Deficit levels
Commodity Price Movement
10
1
10
8
11
0
11
9
12
2
13
0
13
5
13
6
14
8
15
3
87 91 97 10
4
11
0
11
6
12
4
13
0
14
1
14
8
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16*
Demand (GW) Supply (GW)
14%16% 12%
13% 10% 11% 9% 5% 5% 3%
Peak Power Deficit
22,68724,095
Iron Ore (Rs / Tonne)
425488
Aluminium (Rs / Kg)
141
169
Copper (Rs / Kg)
Macroeconomic OutlookExpected
Inflation: 5-6%
2016 2021
CAGR
Iron – 1%
Aluminum – 3%
Copper – 4%
2016 Outlook
5
HHP Business:
Focus on increasing last mile Rail connectivity
Improved targets by Coal India to mining
contractors
Power Generation Business:
Optimistic GDP growth and increasing
urbanization (Smart Cities)
Increase in capital formation
Increased government spending on
manufacturing and infrastructure development
Increasing focus on green energy (renewable)
Engine Business Power Systems
Thrust by government on development in roads,
mining, construction, etc.
Emission norms:
− BSIV implementation India wide by 2017
− BSVI implementation in 2020
Likely introduction of GST to help development of
hub and spoke model - the full impact of to be visible
in three to four years’ time
Bus body code expected to bring additional safety
requirements
Government focus on infrastructure development
(investment of ~$6.2B in roads and ~$1.5B in urban
development) and upcoming smart cities
(investment of $0.9B)
Agenda
Market Outlook
India ABO Performance
India ABO business and organization structure
Opportunity for Suppliers
Cummins’ Quality Journey
Your support
6
India ABO Revenue
4,769
6,419 7,641 7,926
6,938 6,875 7647
677
1,321
1,557 1,686
1,691 2,410
2,615
5,446
7,740
9,198 9,612
8,629 9,285
10,262
2009 2010 2011 2012 2013 2014 2015
Domestic Exports Overall
7
India ABO Revenue
CAGR: Domestic: 8%; Exports: 25%
(in INR Cr)
Cummins has transformed its infrastructure over the last decade…
8
‘State of the art manufacturing
campus spread over 225
acres’
‘Most Advanced Technology
Centre in the Cummins
World’
‘A campus with collaborative
workspace’
Cummins Megasite Technology Center India Office Campus
State-of-the-art manufacturing plants
9Clean Green DiverseLeanSafe
There has been striking reduction in incidents’ rate
10
Safety Campaign: Restructured
contractor safety campaign and rolled
out month on month meetings schedule
Live It Lead It (LILI): Module released
for all employees. The team has
conducted Train the Trainor (TT)
session for all sites
Two wheeler safety module: In-house
two wheeler safety module developed.
TT sessions conducted as well
Other Initiatives: HSE team is working
on safety initiatives like machine
guarding, Slip Trip Falls (STF), hand
safety, etc.
Initiatives
0.10
0.07 Contractor IR
Employee IR 10%
65% Reduction vis-à-
vis last year
Reduction vis-à-
vis last year
Zero IR sites
Sites achieved zero IR
21/28
Employee KPI
Sites achieved zero IR
19/21
Contractor KPI
Reduction in IR cases
0.380.28
0.190.11 0.1 0.1
0.65 0.650.52
0.420.35
0.3
0
0.5
2010 2011 2012 2013 2014 2015
Actual Target
Agenda
Market Outlook
India ABO Performance
India ABO business and organization structure
Opportunity for Suppliers
Cummins’ Quality Journey
Your support
11
India ABO Business Units
Power Systems
Cummins Business
Services
Making people’s lives better by unleashing the Power of Cummins
Components Group
Distribution Business
12
Engine Business
Strategic Leadership Team
Ashish
Aggarwal
Government
Relations
Rajiv Batra
Finance &
Facilities
Sandeep Sinha
Chief Operating
Officer
Anant Talaulicar
Chairman and Managing Director – India ABO
Sudha Dhar
Chief
Information
Officer & GAC
Venkat
Ramana
Legal & Secretarial
Qureish
Shipchandler
Internal
Audit
Vikas Thapa
Human
Resources
Shveta Arya
Strategy &
Chief of Staff
Changes after last suppliers’ meet 13
Operating Leadership Team
11Changes after last suppliers’ meet
Jayeeta
Lakhani
Director Product
Planning &
Mgmt.
Sandeep Sinha
Chief Operating Officer – India ABO
Niranjan
Kirloskar
Fleetguard
Filters
Sandeep
Kalia
Valvoline
Cummins
Babu
Nagarajan
Cummins
Business
Services
Paul
Sowerby
CTCI / CRTI /
Eng
Aditi
Sharma
Quality
Champion
Manoj
Solanki
Hardik ShahShamli
Chapalge
Corporate
Communications
& Branding
Bhavana
Bindra
Distribution
Business
Anjali Pandey
Components
Business
Milind
Madani
Ashwath Ram
EBU India
Mandar Deo Amit Kumar
Power Systems
Corporate Supply Chain Organization
Agenda
Market Outlook
India ABO Performance
India ABO business and organization structure
Opportunity for Suppliers
Cummins’ Quality Journey
Your support
15
Localization by engine family
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Engine Platform Current Localization
BSIII Mechanical 98.3%
ISBe 5.9L 86%
ISBe 6.7L 85%
K38 84%
K50 80%
Engine Platform Current Localization
K19 75%
NHNT 71%
QSN14 52%
ISLe 8.9 L 49%
Q19 40%
Q50 37%
Q23 35%
QSK60 16%
Significant opportunities of growth for you
Emissions era
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95% 85% 75%
5% 15% 25%
BSIII BSIV BSVI
Mechanical Electronic
EcoFit Urea
Tanks Control
Modules
Catalyst
Technology
EcoFit Diesel
Oxidation
Catalysts
Single
Module
Pump with CRFi
Injector
With BSIV implementation in 2017 and BSVI in 2020, more localized electronic components as
well as controls will be required to meet Emission norms.
75% 60% 45%
25% 40% 55%
BSIII BSIV BSVI
Mechanical Electronic
Engine Material Cost Contribution
Excludes Fuel system and after
treatment components
Includes Fuel system and after treatment
components
1
2
Agenda
Market Outlook
India ABO Performance
India ABO business and organization structure
Cummins’ Quality Journey
Your support
18
Why quality matters?
19
Customers’ Feedback1
Zero defects for our customers relies on Supplier
Quality as the first line of defense
Source: 1 - 2015 CMI Inc. EBU NPS Relationship Results
2 – Data for India ABO Consolidated sales and TCL
33
414
3
Delay to support
customer issue
resolution
Engine failures
before promised
engine lifeDelay in resolving
product quality
issues
Product quality
issues
54% of 2015 customer comments were
related to quality issues
Cummins India ABO Warranty Spend2
Certain suppliers have shown that Zero PPM is achievable
20“We are counting on all of you”
202, 29%
488, 71%
Zero ppm Non-zero ppm
Cummins India ABO Suppliers Suppliers’ Conference 2016
135Suppliers attending the
conference
10Suppliers have
exhibited Zero PPM at
BIS and in-plant level
7%Suppliers have
exhibited Zero PPM at
BIS and in-plant level
Launch of AMaZe to address quality issues
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Pillars Critical Processes / Tools
Design
Keeping the entire
product life cycle in
mind
1. VPI / VPCR Execution Process
2. IQA Process
3. Customer Engineering Approval Process
Supplier
All bought out, semi-
finished and finished
products
1. Source Release & PPAP for new & VPI parts
2. Supplier Improvement Program
3. Supplier Non-Conformance Management
Plant
All manufacturing
processes ensuring
Right First Time
1. Statistical Process Control (SPC)
2. Conformance of Production (COP)
3. EASE implementation
Product
Product to deliver
performance before
and after-in-service
1. PPS Database
2. Warranty Data Analytics
3. BIS Process
ServiceThrough enhanced
responsiveness to
service events
1. Communication Flow from Business to Field
Personnel from Distribution Business
2. Parts Availability – Repair Event Cycle Time
3. Technical Capability
Agenda
Market Outlook
India ABO Performance
India ABO business and organization structure
Cummins’ Quality Journey
Your support
22
We need your support…
Achieve Zero Defect
Demonstrate agility
Enhance Tier II capability and quality
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