LUCAS TVS :

A Journey towards Manufacturing Excellence

GROUP 7CHIRAG SINGHAL 031DEBASHRI 033DEEPU KURIEN 034DIPU PASWAN 035DEBASHISH B 032

AGENDA

FACTS ABOUT LUCAS TVS GROUP

BRIEF ABOUT THE CASE

CHALLENGES

SWOT ANALYSIS BEFORE CELLULAR LAYOUT

SWOT ANALYSIS AFTER CELLULAR LAYOUT

ISSUES & SUGGESTIONS

FACTS ABOUT LUCAS TVS GROUP

Lucas-TVS, a JV of Lucas Industries, UK & T V Sundaram Iyengar and Sons (TVS), India was established in 1961 to manufacture Automative Electrical Systems.

Lucas-TVS is India’s largest independent suppliers of automotive components and has got two divisions viz. –

1)Auto Electrical Division – Manufactures electrical products from starters to wipers.

2)Fuel Injection Equipment Division – Manufactures diesel fuel injection equipment for both direct and indirect diesel engines.

TS16949 and OSHAS 18001 certified company .

Padi and Mannur plants are certified with ISO 9001 and QS9000.

FACTS ABOUT LUCAS TVS GROUP (contd.)

Manufacturing facilities in Padi (Chennai), Rewari, Puducherry, Chakan(Pune), Uttarakhand & Indrad(Chennai).

Customers include Maruti,Tata, Hyundai, Ford,Honda, GM,Fiat,Force,Yamaha,HeroHonda, Simpson,Caterpillar,L&T,Komatsu,Swaraj,Tafe,Eicher,Royal Enfield,Bajaj.

LUCAS TVS GROUP & SALES TURNOVER (F’11)

LUCAS TVS (Auto Electricals) - $ 345 Million

DELPHI TVS (Diesel Fuel Injection Equipments) - $ 165 Million

India Nippon Electricals (Electronic Ignition Systems) - $ 56 Million

India Japan Lighting (Auto Lighting Systems) - $ 55 Million

Lucas Indian Service (Aftermarket Operations) - $ 62 Million

Source : www.lucas-tvs.com

BRIEF ABOUT THE CASE

The given case study deals with the evolution of the Indian Auto Industry during the post- independence period and it is characterized by three distinct phases viz.-

1)First Phase - Prior to 1983- License Raj, Less competition & little innovation.

2)Second Phase - Maruti Udyog enters in 1983- captures market with 83 % share of the Rs 10,000/- crore a year market. This resulted industry to slowly responding to the changing needs of customers.

3)Third Phase – It saw the advent of Liberalization in 1993. With Deregulation of Indian passenger car industry- International automobile companies entered resulting high growth.

Challenges

To cope up with liberalized and globalized environment.

To improve operational efficiencies of Lucas TVS.

To improve quality ,to reduce inventory of WIP and finished goods.

Implementation of best practices to match the global leaders.

Providing cross training to the work force .

Future action plan – For continual improvement to improve the process and increase the productivity to meet the customer demands.

SWOT ANALYSIS BEFORE CELLULAR LAYOUT

S W O T Existing plants

and Infrastructure

Low Quality Global Market Demand

Entry of Technological Advanced competitors like Bosch & Denso

Top management had a flexible mindset towards change

Irregularity in delivery schedules

Risk of failure in implementing changes

Global players support

Process Layout

Low Inventory turn ratio of 4.2 PPM against world average of 10-20 PPM

Action Plan by Management of Lucas TVS

Introduction of “Systems Approach towards Manufacturing”

Identifying capable managers and empowering them to implement change management

Worker Buy-in

Layout Changes

Training on SPC, Kanban,5s

Kaizens

Nagare Cell

SWOT ANALYSIS AFTER CELLULAR LAYOUT

S W O TWIP reduction Non – compliance

with quick demand of OEM

High demand Global competition

Diversification of supplies

Severe competition Enhanced exports Employee attrition

Flexible workforce to perform multiple tasks.

Excess capacity in anticipation of demand

Entry in new segments

Enhanced OEM presence in the Indian Market

ISSUES & REMEDIES

QUALITY QUALITY STRICT ADHERENCE TO STRICT ADHERENCE TO QUALITY TOOLS LIKE QUALITY TOOLS LIKE

TPM & TQM TPM & TQM

INEFFICIENT SUPPLY CHAIN INEFFICIENT SUPPLY CHAIN TIBCOTIBCO SUPPLY CHAIN SUPPLY CHAIN INTEGRATION SOA INTEGRATION SOA

OUTDATED TECHNOLOGY EMPHASIS OUTDATED TECHNOLOGY EMPHASIS ON AUTOMATIONON AUTOMATION

Source : www.lucas-tvs.com

HR ISSUES & FINANCE ISSUES

TRAINING TRAINING TECHNICAL TECHNICAL EMPOWERMENT OF EMPOWERMENT OF WORKFORCEWORKFORCE

VULNERABILITY IN KAIZENS INCREASE INCENTIVE FOR VULNERABILITY IN KAIZENS INCREASE INCENTIVE FOR EMPLOYEES EMPLOYEES

  

LOW CAPITAL INVESTMENT INCREASE INVESTMENT IN LOW CAPITAL INVESTMENT INCREASE INVESTMENT IN LATEST LATEST TECHNOLOGY TECHNOLOGY

Turnaround of various Parameters

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