Professional Documents
Culture Documents
Presented By, Group 2 Kritanjali Maltiar (201066) Kunal Jha (201068) Mini Aggarwal (201077) Prashant Pallaw (201106) Rakesh Kumar (201115) Virendra Anand (2011120)
Case Overview
In 1986 Eicher Tractors because of ease in getting loan for purchasing Tractors for farmers and to make the complete use of the opportunity the company had to undergo a complete restructuring of the way the work was done to consolidate and improve their position in the market hence PLAN M.
To produce every component and assembly as per drawings and specifications with less fatigue and effort from workmen.
To change handling of stores and materials in all stages of production to ensure that material was available in the right quantity at the right time in the right place
Company History
1948 Good Earth Company was established to sell and service imported tractors. 1959 Eicher Tractor Corporation of India Pvt. Ltd. was setup by Mr. M.M. Lal. in collaboration with Gebr Eicher of West Germany
1960 The first tractor manufactured in India rolled out of the Faridabad plant.
Reorganization at Eicher
Because of the opportunity and to achieve sustainability, Eicher launched a major reorganization effort. Each of the three independent plants were reorganized into interdependent plants.
Parwanoo Gears and transmission production Alwar Engine manufacturing Faridabad Final assembly
Modernization at Eicher
Introduced the concept of producing every component and every assembly as per drawing and specifications. Company moved existing machinery and installed new ones. Changed production and procurement processes, renovated buildings and changed layouts on the shop floor.
Just In Time
JIT Prologue
Initial impetus for JIT implementation came from Plan M which called for streamlining operations and material flow so as to achieve higher product quality and productivity. Efforts were made to attract and retain young bright engineers. Experimentation and adaptation were encouraged.
Negotiations with the unions at all their plants to communicate the changes that were being brought about.
JIT Implementation
A core team of four engineers was made. Initially trained them for a month on JIT philosophy and technique. Implemented firstly at faridabad and then extended it to Prithampur, Alwar and H.P. plants Twelve workers were identified to work on the new line under JIT implementation program.
JIT Implementation
It was introduced in stages. Transmission sub assembly was chosen for starting work on JIT implementation. Line was designed by analyzing the work content and choosing a target cycle time. Cycle time was measured as one vehicle every so many minutes
This cycle time would match the required capacity of the plant in terms of vehicles per day.
Smaller lot size- To synchronize production with the customer demand, Eicher
determined the quantity of production by the Linearity measure:-
The space available at each work station did not allow the worker to produce the next item until the person succeeding him had physically moved it over to his work station.
Heavy physical work was minimized by use of over head cranes to lift and move heavy parts.
Workers were encouraged to write down the operating standards which specified the sequence of steps for each item on the assembly line going through his station.
Kaizen (Example)
Before Kaizen After Kaizen
Cost
Inventory at various stages Manufacturing variables: no. of rejects per shift and quantity of consumables and tools used Productivity: Man-minutes per unit Overheads: Power, repair, maintenance, canteen etc.
Delivery
Target Achievement: achievement per model Linearity: degree to which the average rate of production required for a month was adhered to. Customer Line Stoppages: the customer was defined as the succeeding line to which its output was fed Safety Number of accidents
Teamwork
Housekeeping work done by the workers Training Number of Kaizens implemented
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