SUMMER INTERNSHIP PROJECT ON REDUCING HIGH TRUCK TAT FOR XUV 500 BIW DOCK AT MVML (Mahindra &

Mahindra).
Presented By: Sameer Misra 12020741055 SIOM

Copyright 2012 Mahindra & Mahindra Ltd. All rights reserved.

COMPANY BACKGROUND
Mahindra Groups Automotive Sector manufactures and markets LCV,
Pick-up trucks, SUVs and Heavy Duty Trucks.

Mahindra decided to expand its line-up to include a new range of medium

and heavy commercial vehicles, including SUVs, trucks and buses.

This expansion required a new plant, so Mahindra decided to establish a

new manufacturing facility in Chakan.

The company exports its products to Europe, Africa, South America, South
Asia and the Middle East.

Copyright 2012 Mahindra & Mahindra Ltd. All rights reserved.

OBJECTIVE OF THE PROJECT

Financial :

Lower negotiating power with the Transporters.

Brand Image :

Poor perception amongst the external entities involved. (Lead Time, Transporters least interested)

Security:

Foreign entity spending more time than desirable (including overnight holds)

Operational:

Uncertainty of the material unload time. Reduces liability of the various parties involved in the process.

A higher amount of inventory in Transit than desirable

Copyright 2012 Mahindra & Mahindra Ltd. All rights reserved.

TRUCK MOVEMENT

What do the Drivers think

Copyright 2012 Mahindra & Mahindra Ltd. All rights reserved.

DELAY ISSUES
Biggest Reason: Excess material in the vehicles.

2nd Biggest Reason: Time taken to deliver the GRN after unloading.
2 step process at PCS Gate, redundancies observed. Time taken proportional to the number of Invoices. Manpower not available to material transfer from storage location to Line. Overloaded Trolleys & Bins- So it takes more time to unload the trolley. JBM is not supplying material as per our production Plan, Priority Sequence & Packaging Signoff.

Inexperienced data entry operator available for creating invoices.

ANALYSIS & TOOLS

QUEUING MODELLING
On XUV 500 Dock

Avg. Wait Time 3:18 Hrs

Avg. Service Time 38 Mins

SIMULATION
(Rockwell Arena Software)

Copyright 2012 Mahindra & Mahindra Ltd. All rights reserved.

CONTRIBUTION TO THE COMPANY & IMPACT OF PROJECT

Reduction in Truck TAT from
8hrs to 4hrs
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

Linear Trendline
< 3 Hrs

Savings 1.95 Cr

< 5 Hrs
< 8 Hrs

>8 Hrs
12-Apr 15-Apr 17-Apr 19-Apr 22-Apr 24-Apr 26-Apr 30-Apr 3-May 6-May 8-May 10-May 13-May 15-May 17-May 20-May

FINANCIAL CALCULATION
MONTH PLAN 5000 4500

4000

3500

3000

XUV LTV/MPV U202 SC/DC M&HCV

1,04,83,200 69,81,818 12,00,000 8,72,727 1,95,37,745

94,34,880 65,45,455 9,60,000 6,98,182 1,76,38,516

83,86,560 61,09,091 7,20,000 5,23,636 1,57,39,287

73,38,240 56,72,727 4,80,000 3,49,091 1,38,40,058

62,89,920 52,36,364 2,40,000 1,74,545 1,19,40,829

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Copyright 2012 Mahindra & Mahindra Ltd. All rights reserved.

LEARNINGS FROM THE PROJECT

Practical Scenario in the industry is totally different.
Endless Constraints Started from Survey of drivers, Analysed the dock working, Analysed SAP data & Finished analysing deviation between Planned & Actual Production.

Proper information sharing is very important.

Copyright 2012 Mahindra & Mahindra Ltd. All rights reserved.

CONCLUSION & RECOMMENDATION

Scheduling of material per truck. (Dock Scheduling) Excess Material:
The Daily Planned vs Actual Production to be made more accurate Creating buffer for the Critical components causing the variation Storage Space requirement to be Reset taking into account Supplier's constraints & buyer's constraints Reduction in the redundancy of the data entered (ASN- PCS- GRN) Better integration of the various data already existing (SAP data, Security gate data etc.) Held Talks with SAP India representatives to come out with a solution for same. Manpower allocation for unloading to be done on basis of vehicle arrival pattern and not the material requirement pattern (Production Pace) GRN generation to be done at Docks.

Copyright 2012 Mahindra & Mahindra Ltd. All rights reserved.

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THANK YOU

Copyright 2012 Mahindra & Mahindra Ltd. All rights reserved.

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