Inventory management system

1. INVENTORY
MANAGEMENT
AND CONTROL

2. 2/15
2
INVENTORY
Inventory management refers to the process of ordering, storing, using, and selling a company's inventory. This includes
the management of raw materials, components, and finished products, as well as warehousing and processing of such
items.
What is Inventory Management ?
The process of inventory management:
• It is a procedure by which a business
can monitor and oversee the purchase
and sale of inventory.
• Through the inventory management
process, you can streamline your
business’s operations, minimize costs,
and maximize the return on investment
(ROI) on your goods.

3. 3/15
3
STEPS INVOLVED IN INVENTORY MANAGEMENT
 Demand Forecasting
 Raise Order against Demand
 Delivery of Goods
 Inventory Monitoring
 Planning again and so on…
Basic five steps are involved in Inventory Management

4. 4/15
4
STEPS INVOLVED IN INVENTORY MANAGEMENT
Demand Forecasting
• It typically involves using past data to
examine trends and predict upcoming
marketing events to stock inventory.
• It ensures that companies have enough
goods to fulfill customer orders while
ensuring enough cash flow as well.

5. 5/15
5
STEPS INVOLVED IN INVENTORY MANAGEMENT
Raising Order or PR
• A purchase requisition is an initial internal
request made by an employee who needs
to acquire goods or services for the
business. Once the purchase requisition is
approved, a purchase order for the items is
sent to a supplier.

6. 6/15
6
STEPS INVOLVED IN INVENTORY MANAGEMENT
Delivery of Goods
• Once you have forecasted the demand for your
products, it is time to get them delivered. These
include raw materials, components or spare
parts, and finished goods.
• After receiving the goods, they are reviewed,
sorted, and shelved in special stock areas. This
can either be a warehouse or a stock-keeping
unit where the items are coded and tagged for
easier tracking.

7. 7/15
7
STEPS INVOLVED IN INVENTORY MANAGEMENT
Inventory Monitoring
• Inventory levels need to be monitored regularly. Thi
ensures that the employees have an accurate idea o
the current inventory, helping minimize the
probability of stockouts, spoiled or defective goods,
missed or repeated orders, or risk exposure due to
theft and fraud.

8. 8/15
8
WHAT IS INVENTORY
PROCESS MANAGEMENT ?

9. 9/15
9
This process of managing inventory includes tracking your requirements, ordering materials, and restocking
them again. In other words, inventory management is a technique of controlling, storing, and keeping track of
inventory in your company.
INVENTORY PROCESS MANAGEMENT
SOME OF THE KEY BENEFITS OF INVENTORY PROCESS
MANAGEMENT.
 Reduces the Risk of Overselling
 Increases Employee Efficiency
 Improves Brand Loyalty and Reputation
 Reduces Unnecessary Costs
 Helps In Long-Term Inventory Planning
With the benefits of Inventory Management there are some limitations too

10. 10/15
10
LIMITATIONS OF INVENTORY
PROCESS MANAGEMENT

11. 11/15
11
There are several drawbacks to the inventory management process as well.
INVENTORY PROCESS MANAGEMENT
SOME OF THE LIMITATIONS OF INVENTORY PROCESS
MANAGEMENT ARE
 Risk Is Not Completely Eliminated
 Complexity of Systems
 Inventory Process Software Is Expensive
 Quality Control Issues
An efficient inventory process management system helps predict inventory levels better, it can only partially
eliminate risk. Even if your firm uses inventory process software, if left unchecked or malfunctioned, you might end
up overselling or overbuying stock.
While inventory process systems help manage the movement of your goods better, it can be complex to
understand how to use the software. As a result, it is mandatory for your employees to undergo multiple training
sessions and look at tutorials and step-by-step guides.
One of the major disadvantages of inventory management systems is that they are expensive. Due to their
enterprise focus, small- and- medium-scale businesses find it difficult to afford inventory process
management software
Inventory process management can help you control the inventory levels in your business but can’t guarantee
anything regarding the quality of the products. As a result, it is easy for companies to dispatch defective or wrong
items along with good quality ones. This is due to the fact that inventory management systems are primarily
based on controlling and monitoring goods and not on their production.

12. 12/15
12
Cost Reduction
Target
Quality
Target
Productivity Target
Down Time due
to Tool
Debottleneck of
machine
Component Rejection
due to Tool
Tool Buying Cost
Reduction
Inventory Carrying
cost Reduction
Consumption Cost
Reduction
1
2
3

13. 13/15
13
INVENTORY ANALYSIS METHODS
Inventory Carrying
Cost Reduction
Bench Marking With
Inventory Turn Ratio
(ITR) & Gap Analysis &
Schedule making
Planning &
Implementation to
safety stock
Sustainability
Reduction started by
Different Model- 1) ABC 2)
Variance 3) Kanban
4) In- House Manufacturing
METHODOLOGY- ABC ANALYSIS
Annual Buying data
compilation
Cost Reduction different
type of technique apply
on A Class tooling
Action plan & counter
measure
Benefits
Classification of Tools on the
basis of ABC analysis
METHODOLOGY- BUYING COST REDUCTION
Prioritization based on
consumption value.
Prioritize Data tool
wise
Problem wise down
time & Action Plan
Implementation
and monitoring
Horizontal
Deployment
Sustainability
METHODOLOGY- CONSUMPTION COST REDUCTION

14. 14/15
14
INVENTORY COST DOWN BY ABC ANALYSIS
Total Tools
(Head + Block+ Case+ Crank + Conrod )
Annual consumption
pattern check
High (A), Medium (B), Low (C )
Consumption Classification
Daily(A), weekly (B), Monthly (C )
Review system to be made
Inventory reduction of A class item
ABC Data analysis
IH-5DS079-3
ROL - Reached
A Class Items closely monitoring through KANBAN system
Consumption in %
Cost
in
%
ABC Graph
902 No’s Rs. 144 Mill. A=Rs. 105 MILL/- , B=Rs. 31 MILL, C=7.4 MILL.
A
AB
ABC
KANBAN system Implemented
15.5
Cost down by ABC analysis
 By classification ABC analysis reduction of safety
stock of A class items.
 Implementation of KANBAN system for A class item
in board
 Demand variation ( Issuance) & supply variation
(Inventory + P.O. + Mfg + Delivery ) study and
reduction ( within 7 to 21 days )
 Applying inventory models for demand variation
 Item Categorization in Fast Slow Nonmoving (FSN)
93 ki
End
In
Millions
93 ki Actual
Till date
7
(45%)
KANBAN BOARD
METHODOLOGY
7.5

15. 15/15
15
IMPLEMENTATION OF KANBAN SYSTEM
Less Tool Stock
KANBAN BOARD
A CLASS ITEM CABINET
TOOL ORDERING DESK
METHODOLOGY
KANBAN Bin Card For A
Class Item
Less Stock of Tools
Move The KANBAN Card To
KANBAN Board Initiate action accordingly
After Tool Receiving KANBAN
card return to the cabinet
Inventory manager focus
on visual display
immediately
Less stock
Order executed
Material received
Date
Safety Stock

16. 16/15
16
THEME FOR INVENTORY COST REDUCTION
Activity KK JH QM PM SHE TM DM ET
Loss No./
Step
Result Area P Q C D S M E
Present status :
Why - Why Analysis :
Inventory Carrying cost high
Drawing change ( ) Process/ OPS ( )
Tooling ( )
Scope & plan for Horizontal Deployment :
M/c# Responsibility Status
KAIZEN IDEA - SHEET
Standardization
After:-
NC#6
Theme :
To reduce Inventory carrying cost by Combination tool
IDEA:
To reduce inventory carrying cost by combination of tools
Countermeasure (Engineering solution):
Before :
Results:
1) Inventroy carrying cost reduced
Department: AL MACHINING
High Inventory
Different tools used for different
operation at one place
Area: HEAD DIESEL
Machine/ Equipment:
Two Different tools were running on machine
After Combination of drill & reamer inventory carrying cost reduced
2) Ordering & planning reduced
By Tool combination , Inventory carrying cost
reduced
S# Target date
Countermeasure ;-
Machine : BFW
Line :- Head Diesel
Operation : U CAP HOLE
Tool : IH-5RZ070
SPEC : Ø16x Ø19 x130L MM
SET UP QTY : 1 NO'S
PLAN LIFE : 40,000 COMP
Tool can combine for different
Operation at one place
Reamer
Combination Drill With Reamer
Drill
IH-5DS118
IH-5RZ070
IH-5RZ091
Problem
2 types of tool
one common tool
0.5
0.2
0
0.2
0.4
0.6
Before After
In
m
illions
→
Why-1
Why-2
Why-3

17. 17/15
17
IMPROVEMENT THEME BY BULK ORDERING
Activity KK JH QM PM SHE TM DM ET
Loss No./
Step
Result Area P Q C D S M E
Target
Kaizen start
Kaizen Finish
Benefits: (P,Q,C,D,S,M,E)
Team members:
Scope & plan for Horizontal Deployment
S# M/c# Responsibility Status
Tooling ( √ )
Machine/Equipment:
Target date
Change in Drawing ( √ )
HD1-25 & HD2-25
Dec'15
Jan'15
KAIZEN IDEA - SHEET Department: Tool Engineering
Area: Cyl Head
 Line : Head (Pe &De)
 Tool No : IH-5BG002
 Operation : Valve seat chamfering
 Maker : MTTL
 Unit price :3760Rs
 Cpc :2.83Rs/comp
High buying cost
Kaizen Theme
Situation Analysis
Kaizen idea
Reducing Buying cost by Changing monthly
ordering cycle to Annually
To reduce buying cost of valve seat chamfering insert by bulk ordering
Tool Details
PROBLEM
Why-Why Analysis
Why-1 High Buying cost
Why-2
Why-3 Less Tool ordering Quantity
No Discount
New tool
Requirement/ Year
Price negotiation scope
for small ordering qty./
Month is not feasible
After:
Before:
Countermeasure
Monthly ordering cycle change to Annual
ordering cycle
Zero Discount
Horizontal deployment
Result
After bulk negotiation unit price reduced by 2%
952,000
926,000
26,000
In
rs./year
Yearly Buying saving
Plan Buying Actual Buying
Why-4 Monthly Ordering cycle
S.NO. UOM UNIT PRICE
1 NOS 19,500.00
2 NOS 16,230.00
3 NOS 14,300.00
4 NOS 13,500.00
5 NOS 13,500.00
6 NOS 1,770.00
7 NOS 23,170.00
8 NOS 21,500.00
Honda Cars India Ltd. Spl-1,Tapukara Industrial Area, Khushkhera, Distt, Alw ar , Rajasthan() Pin-301707,INDIA
Tel : (91)-1493-250561,62,63,65,FAX : (91)-1493-250564
CIN: U15114DL1995PLC203983
Website : w w w .hondacarindia.com E-mail : corporate@hondacarindia.com
PURCHASE ORDER
To M/s MOTHERSON TECHNO TOOLS LTD
A-2, Sector 84,Noida,,,Uttar Pradesh, 201301 (India)
Purchase Order 285,980
Date 12-02-16
Qtn Ref. No. -
Purchasing Contact Name Rudraksh Chaudhary
Tel.No.
Tel No 8800094218 Indentor MULTIPLE
Fax No. Delivery Location MS
We are pleased to confirm our order as per details given below . You are requested to execute the order as per general instructions mentioned and
terms & conditions attached
Billing Address Shipping Address
Spl-1
Tapukara Industrial Area Khushkhera, Distt, Alw ar Rajasthan()-301707
Spl-1
Tapukara Industrial Area Khushkhera, Distt, Alw ar Rajasthan()-301707
A) SCOPE OF SUPPLY / WORK
ITEM CODE ITEM DESCRIPTION QTY VALUE (INR) DUE DATE
IH-5RZ014 -R Regrinding of Reamer
Dia15.3xDia17xDia19xDia26x195,
Make:Mttl
2 39,000.00 31-12-15
IH-5RZ072 -R Regrinding of Reamer
Dia14.4xDia17xDia19xDia26x195L,
Make:Mttl
4 64,920.00 31-12-15
IH-5RZ011 -R Regrinding of Reamer
Dia19.4xDia20x150, Make : Mttl
2 28,600.00 30-12-15
IH-5RZ051 -R Regrinding of Reamer
Dia20x10xDia25.2xDia26x225L, Make
: Mttl
8 108,000.00 30-12-15
IH-5ZZ012 -R Regrinding of CUTTER
Dia9.4x16xDia10.35x1.0xDia14.25xDi
a25xDia20x127L, Make :Mttl
7 94,500.00 30-12-15
IH-5NZ012 -R Regrinding of Insert 8.5x3.18,
Make:Mttl
150 265,500.00 31-12-15
IH-5MF015 -R Regrinding of MILING CUTER
Dia80(R3)*Dia82(R5)*Dia42*125L,
Make:Mttl
5 115,850.00 30-12-15
IH-5RZ071 -R Regrinding of Reamer
Dia7.7(C0.5)xDia17(R1.5)xDia19.2xDi
a19.5xDia22.4H7xDia25x235.5L,
Make:Mttl
5 107,500.00 30-12-15
TOTAL BASIC VALUE (Rs.): 823,870.00
SERVICE TAX RECOVERABLE - 14% 115,342.00
SWACHH BHARAT CESS @ 0.5% 4,121.00
TOTAL PO VALUE (With Taxes): 943,333.00
Nine Lac Forty Three Thousand Three Hundred
Thirty Three Only
S.NO. UOM UNIT PRICE
1 NOS 19,500.00
2 NOS 16,230.00
3 NOS 14,300.00
4 NOS 13,500.00
5 NOS 13,500.00
6 NOS 1,770.00
7 NOS 23,170.00
8 NOS 21,500.00
Honda Cars India Ltd. Spl-1,Tapukara Industrial Area, Khushkhera, Distt, Alw ar , Rajasthan() Pin-301707,INDIA
Tel : (91)-1493-250561,62,63,65,FAX : (91)-1493-250564
CIN: U15114DL1995PLC203983
Website : w w w .hondacarindia.com E-mail : corporate@hondacarindia.com
PURCHASE ORDER
To M/s MOTHERSON TECHNO TOOLS LTD
A-2, Sector 84,Noida,,,Uttar Pradesh, 201301 (India)
Purchase Order 285,980
Date 12-02-16
Qtn Ref. No. -
Purchasing Contact Name Rudraksh Chaudhary
Tel.No.
Tel No 8800094218 Indentor MULTIPLE
Fax No. Delivery Location MS
We are pleased to confirm our order as per details given below . You are requested to execute the order as per general instructions mentioned and
terms & conditions attached
Billing Address Shipping Address
Spl-1
Tapukara Industrial Area Khushkhera, Distt, Alw ar Rajasthan()-301707
Spl-1
Tapukara Industrial Area Khushkhera, Distt, Alw ar Rajasthan()-301707
A) SCOPE OF SUPPLY / WORK
ITEM CODE ITEM DESCRIPTION QTY VALUE (INR) DUE DATE
IH-5RZ014 -R Regrinding of Reamer
Dia15.3xDia17xDia19xDia26x195,
Make:Mttl
2 39,000.00 31-12-15
IH-5RZ072 -R Regrinding of Reamer
Dia14.4xDia17xDia19xDia26x195L,
Make:Mttl
4 64,920.00 31-12-15
IH-5RZ011 -R Regrinding of Reamer
Dia19.4xDia20x150, Make : Mttl
2 28,600.00 30-12-15
IH-5RZ051 -R Regrinding of Reamer
Dia20x10xDia25.2xDia26x225L, Make
: Mttl
8 108,000.00 30-12-15
IH-5ZZ012 -R Regrinding of CUTTER
Dia9.4x16xDia10.35x1.0xDia14.25xDi
a25xDia20x127L, Make :Mttl
7 94,500.00 30-12-15
IH-5NZ012 -R Regrinding of Insert 8.5x3.18,
Make:Mttl
150 265,500.00 31-12-15
IH-5MF015 -R Regrinding of MILING CUTER
Dia80(R3)*Dia82(R5)*Dia42*125L,
Make:Mttl
5 115,850.00 30-12-15
IH-5RZ071 -R Regrinding of Reamer
Dia7.7(C0.5)xDia17(R1.5)xDia19.2xDi
a19.5xDia22.4H7xDia25x235.5L,
Make:Mttl
5 107,500.00 30-12-15
TOTAL BASIC VALUE (Rs.): 823,870.00
SERVICE TAX RECOVERABLE - 14% 115,342.00
SWACHH BHARAT CESS @ 0.5% 4,121.00
TOTAL PO VALUE (With Taxes): 943,333.00
Nine Lac Forty Three Thousand Three Hundred
Thirty Three Only
S.NO. UOM UNIT PRICE
1 NOS 19,500.00
2 NOS 16,230.00
3 NOS 14,300.00
4 NOS 13,500.00
5 NOS 13,500.00
6 NOS 1,770.00
7 NOS 23,170.00
8 NOS 21,500.00
Honda Cars India Ltd. Spl-1,Tapukara Industrial Area, Khushkhera, Distt, Alw ar , Rajasthan() Pin-301707,INDIA
Tel : (91)-1493-250561,62,63,65,FAX : (91)-1493-250564
CIN: U15114DL1995PLC203983
Website : w w w .hondacarindia.com E-mail : corporate@hondacarindia.com
PURCHASE ORDER
To M/s MOTHERSON TECHNO TOOLS LTD
A-2, Sector 84,Noida,,,Uttar Pradesh, 201301 (India)
Purchase Order 285,980
Date 12-02-16
Qtn Ref. No. -
Purchasing Contact Name Rudraksh Chaudhary
Tel.No.
Tel No 8800094218 Indentor MULTIPLE
Fax No. Delivery Location MS
We are pleased to confirm our order as per details given below . You are requested to execute the order as per general instructions mentioned and
terms & conditions attached
Billing Address Shipping Address
Spl-1
Tapukara Industrial Area Khushkhera, Distt, Alw ar Rajasthan()-301707
Spl-1
Tapukara Industrial Area Khushkhera, Distt, Alw ar Rajasthan()-301707
A) SCOPE OF SUPPLY / WORK
ITEM CODE ITEM DESCRIPTION QTY VALUE (INR) DUE DATE
IH-5RZ014 -R Regrinding of Reamer
Dia15.3xDia17xDia19xDia26x195,
Make:Mttl
2 39,000.00 31-12-15
IH-5RZ072 -R Regrinding of Reamer
Dia14.4xDia17xDia19xDia26x195L,
Make:Mttl
4 64,920.00 31-12-15
IH-5RZ011 -R Regrinding of Reamer
Dia19.4xDia20x150, Make : Mttl
2 28,600.00 30-12-15
IH-5RZ051 -R Regrinding of Reamer
Dia20x10xDia25.2xDia26x225L, Make
: Mttl
8 108,000.00 30-12-15
IH-5ZZ012 -R Regrinding of CUTTER
Dia9.4x16xDia10.35x1.0xDia14.25xDi
a25xDia20x127L, Make :Mttl
7 94,500.00 30-12-15
IH-5NZ012 -R Regrinding of Insert 8.5x3.18,
Make:Mttl
150 265,500.00 31-12-15
IH-5MF015 -R Regrinding of MILING CUTER
Dia80(R3)*Dia82(R5)*Dia42*125L,
Make:Mttl
5 115,850.00 30-12-15
IH-5RZ071 -R Regrinding of Reamer
Dia7.7(C0.5)xDia17(R1.5)xDia19.2xDi
a19.5xDia22.4H7xDia25x235.5L,
Make:Mttl
5 107,500.00 30-12-15
TOTAL BASIC VALUE (Rs.): 823,870.00
SERVICE TAX RECOVERABLE - 14% 115,342.00
SWACHH BHARAT CESS @ 0.5% 4,121.00
TOTAL PO VALUE (With Taxes): 943,333.00
Nine Lac Forty Three Thousand Three Hundred
Thirty Three Only
S.NO. UOM UNIT PRICE
1 NOS 19,500.00
2 NOS 16,230.00
3 NOS 14,300.00
4 NOS 13,500.00
5 NOS 13,500.00
6 NOS 1,770.00
7 NOS 23,170.00
8 NOS 21,500.00
Honda Cars India Ltd. Spl-1,Tapukara Industrial Area, Khushkhera, Distt, Alw ar , Rajasthan() Pin-301707,INDIA
Tel : (91)-1493-250561,62,63,65,FAX : (91)-1493-250564
CIN: U15114DL1995PLC203983
Website : w w w .hondacarindia.com E-mail : corporate@hondacarindia.com
PURCHASE ORDER
To M/s MOTHERSON TECHNO TOOLS LTD
A-2, Sector 84,Noida,,,Uttar Pradesh, 201301 (India)
Purchase Order 285,980
Date 12-02-16
Qtn Ref. No. -
Purchasing Contact Name Rudraksh Chaudhary
Tel.No.
Tel No 8800094218 Indentor MULTIPLE
Fax No. Delivery Location MS
We are pleased to confirm our order as per details given below . You are requested to execute the order as per general instructions mentioned and
terms & conditions attached
Billing Address Shipping Address
Spl-1
Tapukara Industrial Area Khushkhera, Distt, Alw ar Rajasthan()-301707
Spl-1
Tapukara Industrial Area Khushkhera, Distt, Alw ar Rajasthan()-301707
A) SCOPE OF SUPPLY / WORK
ITEM CODE ITEM DESCRIPTION QTY VALUE (INR) DUE DATE
IH-5RZ014 -R Regrinding of Reamer
Dia15.3xDia17xDia19xDia26x195,
Make:Mttl
2 39,000.00 31-12-15
IH-5RZ072 -R Regrinding of Reamer
Dia14.4xDia17xDia19xDia26x195L,
Make:Mttl
4 64,920.00 31-12-15
IH-5RZ011 -R Regrinding of Reamer
Dia19.4xDia20x150, Make : Mttl
2 28,600.00 30-12-15
IH-5RZ051 -R Regrinding of Reamer
Dia20x10xDia25.2xDia26x225L, Make
: Mttl
8 108,000.00 30-12-15
IH-5ZZ012 -R Regrinding of CUTTER
Dia9.4x16xDia10.35x1.0xDia14.25xDi
a25xDia20x127L, Make :Mttl
7 94,500.00 30-12-15
IH-5NZ012 -R Regrinding of Insert 8.5x3.18,
Make:Mttl
150 265,500.00 31-12-15
IH-5MF015 -R Regrinding of MILING CUTER
Dia80(R3)*Dia82(R5)*Dia42*125L,
Make:Mttl
5 115,850.00 30-12-15
IH-5RZ071 -R Regrinding of Reamer
Dia7.7(C0.5)xDia17(R1.5)xDia19.2xDi
a19.5xDia22.4H7xDia25x235.5L,
Make:Mttl
5 107,500.00 30-12-15
TOTAL BASIC VALUE (Rs.): 823,870.00
SERVICE TAX RECOVERABLE - 14% 115,342.00
SWACHH BHARAT CESS @ 0.5% 4,121.00
TOTAL PO VALUE (With Taxes): 943,333.00
Nine Lac Forty Three Thousand Three Hundred
Thirty Three Only
S.NO. UOM UNIT PRICE
1 NOS 19,500.00
2 NOS 16,230.00
3 NOS 14,300.00
4 NOS 13,500.00
5 NOS 13,500.00
6 NOS 1,770.00
7 NOS 23,170.00
8 NOS 21,500.00
Honda Cars India Ltd. Spl-1,Tapukara Industrial Area, Khushkhera, Distt, Alw ar , Rajasthan() Pin-301707,INDIA
Tel : (91)-1493-250561,62,63,65,FAX : (91)-1493-250564
CIN: U15114DL1995PLC203983
Website : w w w .hondacarindia.com E-mail : corporate@hondacarindia.com
PURCHASE ORDER
To M/s MOTHERSON TECHNO TOOLS LTD
A-2, Sector 84,Noida,,,Uttar Pradesh, 201301 (India)
Purchase Order 285,980
Date 12-02-16
Qtn Ref. No. -
Purchasing Contact Name Rudraksh Chaudhary
Tel.No.
Tel No 8800094218 Indentor MULTIPLE
Fax No. Delivery Location MS
We are pleased to confirm our order as per details given below . You are requested to execute the order as per general instructions mentioned and
terms & conditions attached
Billing Address Shipping Address
Spl-1
Tapukara Industrial Area Khushkhera, Distt, Alw ar Rajasthan()-301707
Spl-1
Tapukara Industrial Area Khushkhera, Distt, Alw ar Rajasthan()-301707
A) SCOPE OF SUPPLY / WORK
ITEM CODE ITEM DESCRIPTION QTY VALUE (INR) DUE DATE
IH-5RZ014 -R Regrinding of Reamer
Dia15.3xDia17xDia19xDia26x195,
Make:Mttl
2 39,000.00 31-12-15
IH-5RZ072 -R Regrinding of Reamer
Dia14.4xDia17xDia19xDia26x195L,
Make:Mttl
4 64,920.00 31-12-15
IH-5RZ011 -R Regrinding of Reamer
Dia19.4xDia20x150, Make : Mttl
2 28,600.00 30-12-15
IH-5RZ051 -R Regrinding of Reamer
Dia20x10xDia25.2xDia26x225L, Make
: Mttl
8 108,000.00 30-12-15
IH-5ZZ012 -R Regrinding of CUTTER
Dia9.4x16xDia10.35x1.0xDia14.25xDi
a25xDia20x127L, Make :Mttl
7 94,500.00 30-12-15
IH-5NZ012 -R Regrinding of Insert 8.5x3.18,
Make:Mttl
150 265,500.00 31-12-15
IH-5MF015 -R Regrinding of MILING CUTER
Dia80(R3)*Dia82(R5)*Dia42*125L,
Make:Mttl
5 115,850.00 30-12-15
IH-5RZ071 -R Regrinding of Reamer
Dia7.7(C0.5)xDia17(R1.5)xDia19.2xDi
a19.5xDia22.4H7xDia25x235.5L,
Make:Mttl
5 107,500.00 30-12-15
TOTAL BASIC VALUE (Rs.): 823,870.00
SERVICE TAX RECOVERABLE - 14% 115,342.00
SWACHH BHARAT CESS @ 0.5% 4,121.00
TOTAL PO VALUE (With Taxes): 943,333.00
Nine Lac Forty Three Thousand Three Hundred
Thirty Three Only
S.NO. UOM UNIT PRICE
1 NOS 19,500.00
2 NOS 16,230.00
3 NOS 14,300.00
4 NOS 13,500.00
5 NOS 13,500.00
6 NOS 1,770.00
7 NOS 23,170.00
8 NOS 21,500.00
Honda Cars India Ltd. Spl-1,Tapukara Industrial Area, Khushkhera, Distt, Alw ar , Rajasthan() Pin-301707,INDIA
Tel : (91)-1493-250561,62,63,65,FAX : (91)-1493-250564
CIN: U15114DL1995PLC203983
Website : w w w .hondacarindia.com E-mail : corporate@hondacarindia.com
PURCHASE ORDER
To M/s MOTHERSON TECHNO TOOLS LTD
A-2, Sector 84,Noida,,,Uttar Pradesh, 201301 (India)
Purchase Order 285,980
Date 12-02-16
Qtn Ref. No. -
Purchasing Contact Name Rudraksh Chaudhary
Tel.No.
Tel No 8800094218 Indentor MULTIPLE
Fax No. Delivery Location MS
We are pleased to confirm our order as per details given below . You are requested to execute the order as per general instructions mentioned and
terms & conditions attached
Billing Address Shipping Address
Spl-1
Tapukara Industrial Area Khushkhera, Distt, Alw ar Rajasthan()-301707
Spl-1
Tapukara Industrial Area Khushkhera, Distt, Alw ar Rajasthan()-301707
A) SCOPE OF SUPPLY / WORK
ITEM CODE ITEM DESCRIPTION QTY VALUE (INR) DUE DATE
IH-5RZ014 -R Regrinding of Reamer
Dia15.3xDia17xDia19xDia26x195,
Make:Mttl
2 39,000.00 31-12-15
IH-5RZ072 -R Regrinding of Reamer
Dia14.4xDia17xDia19xDia26x195L,
Make:Mttl
4 64,920.00 31-12-15
IH-5RZ011 -R Regrinding of Reamer
Dia19.4xDia20x150, Make : Mttl
2 28,600.00 30-12-15
IH-5RZ051 -R Regrinding of Reamer
Dia20x10xDia25.2xDia26x225L, Make
: Mttl
8 108,000.00 30-12-15
IH-5ZZ012 -R Regrinding of CUTTER
Dia9.4x16xDia10.35x1.0xDia14.25xDi
a25xDia20x127L, Make :Mttl
7 94,500.00 30-12-15
IH-5NZ012 -R Regrinding of Insert 8.5x3.18,
Make:Mttl
150 265,500.00 31-12-15
IH-5MF015 -R Regrinding of MILING CUTER
Dia80(R3)*Dia82(R5)*Dia42*125L,
Make:Mttl
5 115,850.00 30-12-15
IH-5RZ071 -R Regrinding of Reamer
Dia7.7(C0.5)xDia17(R1.5)xDia19.2xDi
a19.5xDia22.4H7xDia25x235.5L,
Make:Mttl
5 107,500.00 30-12-15
TOTAL BASIC VALUE (Rs.): 823,870.00
SERVICE TAX RECOVERABLE - 14% 115,342.00
SWACHH BHARAT CESS @ 0.5% 4,121.00
TOTAL PO VALUE (With Taxes): 943,333.00
Nine Lac Forty Three Thousand Three Hundred
Thirty Three Only
Multiple tool ordering on monthly basis
S.NO. UOM UNIT PRICE
1 NOS 19,500.00
2 NOS 16,230.00
3 NOS 14,300.00
4 NOS 13,500.00
5 NOS 13,500.00
6 NOS 1,770.00
7 NOS 23,170.00
8 NOS 21,500.00
Honda Cars India Ltd. Spl-1,Tapukara Industrial Area, Khushkhera, Distt, Alw ar , Rajasthan() Pin-301707,INDIA
Tel : (91)-1493-250561,62,63,65,FAX : (91)-1493-250564
CIN: U15114DL1995PLC203983
Website : w w w .hondacarindia.com E-mail : corporate@hondacarindia.com
PURCHASE ORDER
To M/s MOTHERSON TECHNO TOOLS LTD
A-2, Sector 84,Noida,,,Uttar Pradesh, 201301 (India)
Purchase Order 285,980
Date 12-02-16
Qtn Ref. No. -
Purchasing Contact Name Rudraksh Chaudhary
Tel.No.
Tel No 8800094218 Indentor MULTIPLE
Fax No. Delivery Location MS
We are pleased to confirm our order as per details given below . You are requested to execute the order as per general instructions mentioned and
terms & conditions attached
Billing Address Shipping Address
Spl-1
Tapukara Industrial Area Khushkhera, Distt, Alw ar Rajasthan()-301707
Spl-1
Tapukara Industrial Area Khushkhera, Distt, Alw ar Rajasthan()-301707
A) SCOPE OF SUPPLY / WORK
ITEM CODE ITEM DESCRIPTION QTY VALUE (INR) DUE DATE
IH-5RZ014 -R Regrinding of Reamer
Dia15.3xDia17xDia19xDia26x195,
Make:Mttl
2 39,000.00 31-12-15
IH-5RZ072 -R Regrinding of Reamer
Dia14.4xDia17xDia19xDia26x195L,
Make:Mttl
4 64,920.00 31-12-15
IH-5RZ011 -R Regrinding of Reamer
Dia19.4xDia20x150, Make : Mttl
2 28,600.00 30-12-15
IH-5RZ051 -R Regrinding of Reamer
Dia20x10xDia25.2xDia26x225L, Make
: Mttl
8 108,000.00 30-12-15
IH-5ZZ012 -R Regrinding of CUTTER
Dia9.4x16xDia10.35x1.0xDia14.25xDi
a25xDia20x127L, Make :Mttl
7 94,500.00 30-12-15
IH-5NZ012 -R Regrinding of Insert 8.5x3.18,
Make:Mttl
150 265,500.00 31-12-15
IH-5MF015 -R Regrinding of MILING CUTER
Dia80(R3)*Dia82(R5)*Dia42*125L,
Make:Mttl
5 115,850.00 30-12-15
IH-5RZ071 -R Regrinding of Reamer
Dia7.7(C0.5)xDia17(R1.5)xDia19.2xDi
a19.5xDia22.4H7xDia25x235.5L,
Make:Mttl
5 107,500.00 30-12-15
TOTAL BASIC VALUE (Rs.): 823,870.00
SERVICE TAX RECOVERABLE - 14% 115,342.00
SWACHH BHARAT CESS @ 0.5% 4,121.00
TOTAL PO VALUE (With Taxes): 943,333.00
Nine Lac Forty Three Thousand Three Hundred
Thirty Three Only
New tool
Requirement/ Year
Price negotiation scope
for Bulk ordering qty./
Year is feasible
2 % discount on
unit price
S.NO. UOM UNIT PRICE
1 NOS 19,500.00
2 NOS 16,230.00
3 NOS 14,300.00
4 NOS 13,500.00
5 NOS 13,500.00
6 NOS 1,770.00
7 NOS 23,170.00
8 NOS 21,500.00
Honda Cars India Ltd. Spl-1,Tapukara Industrial Area, Khushkhera, Distt, Alw ar , Rajasthan() Pin-301707,INDIA
Tel : (91)-1493-250561,62,63,65,FAX : (91)-1493-250564
CIN: U15114DL1995PLC203983
Website : w w w .hondacarindia.com E-mail : corporate@hondacarindia.com
PURCHASE ORDER
To M/s MOTHERSON TECHNO TOOLS LTD
A-2, Sector 84,Noida,,,Uttar Pradesh, 201301 (India)
Purchase Order 285,980
Date 12-02-16
Qtn Ref. No. -
Purchasing Contact Name Rudraksh Chaudhary
Tel.No.
Tel No 8800094218 Indentor MULTIPLE
Fax No. Delivery Location MS
We are pleased to confirm our order as per details given below . You are requested to execute the order as per general instructions mentioned and
terms & conditions attached
Billing Address Shipping Address
Spl-1
Tapukara Industrial Area Khushkhera, Distt, Alw ar Rajasthan()-301707
Spl-1
Tapukara Industrial Area Khushkhera, Distt, Alw ar Rajasthan()-301707
A) SCOPE OF SUPPLY / WORK
ITEM CODE ITEM DESCRIPTION QTY VALUE (INR) DUE DATE
IH-5RZ014 -R Regrinding of Reamer
Dia15.3xDia17xDia19xDia26x195,
Make:Mttl
2 39,000.00 31-12-15
IH-5RZ072 -R Regrinding of Reamer
Dia14.4xDia17xDia19xDia26x195L,
Make:Mttl
4 64,920.00 31-12-15
IH-5RZ011 -R Regrinding of Reamer
Dia19.4xDia20x150, Make : Mttl
2 28,600.00 30-12-15
IH-5RZ051 -R Regrinding of Reamer
Dia20x10xDia25.2xDia26x225L, Make
: Mttl
8 108,000.00 30-12-15
IH-5ZZ012 -R Regrinding of CUTTER
Dia9.4x16xDia10.35x1.0xDia14.25xDi
a25xDia20x127L, Make :Mttl
7 94,500.00 30-12-15
IH-5NZ012 -R Regrinding of Insert 8.5x3.18,
Make:Mttl
150 265,500.00 31-12-15
IH-5MF015 -R Regrinding of MILING CUTER
Dia80(R3)*Dia82(R5)*Dia42*125L,
Make:Mttl
5 115,850.00 30-12-15
IH-5RZ071 -R Regrinding of Reamer
Dia7.7(C0.5)xDia17(R1.5)xDia19.2xDi
a19.5xDia22.4H7xDia25x235.5L,
Make:Mttl
5 107,500.00 30-12-15
TOTAL BASIC VALUE (Rs.): 823,870.00
SERVICE TAX RECOVERABLE - 14% 115,342.00
SWACHH BHARAT CESS @ 0.5% 4,121.00
TOTAL PO VALUE (With Taxes): 943,333.00
Nine Lac Forty Three Thousand Three Hundred
Thirty Three Only
Single Tool ordering on Yearly basis
Situation Analysis
Unit
price
in
Rs.
70
(2%)
Saving in unit price
3760
3690
Before After

18. 18/15
18
THEMES FOR CONSUMPTION COST REDUCTION
Activity KK JH QM PM SHE TM DM ET
Loss No./
Step
Result Area
P Q C D S M E
Present status :
;
Why - Why Analysis :
Drawing change ( √ ) Process/ OPS ( √ )
Tooling ( √ )
Countermeasure :- Scope & plan for Horizontal Deployment :
M/c# Responsibility Status
KAIZEN IDEA - SHEET
Department: Al Machining
Area: AL- BLOCK- DIESEL
Machine/ Equipment:
Results:
After Grade & Wear Pic.
Before Grade & Wear Pic.
Standardization
Insert material grade to be change .
S# Target date
1 Tooling
OCT'16
BL1-19,20
Countermeasure (Engineering solution):
1) Component material - HD2-BS-T5
2) Component Hardness - 60~72HRB
3) Insert Material Grade - APN 400 grade (Unik -Make)
BL2-21,22
Theme :
To Reduce the consumption cost by tool material change
IDEA:
Insert Material to be Change from soft grade to hard Grade
High consumption of tools 1) Component material-HD2-BS-T5
2) Component Hardness -60~72HRB
3) Insert Material Grade - BN600 grade ( MTTL -Make)
Line: Block Diesel
Machine : M/c No. - BL2-21,22
Operation : SLEEVE BORING
Tool : IH-5NZ012-3
Spec : □8.5×3.18
Insert grade soft
Insert Wear out
Life less problem
High Tool Consumption
0.070
Why-1
Why-2
Why-3
Why-4
PROBLEM
0.151
0.211
Top view
Nose Radius
Top view
Nose Radius
0.050
11.25
1.00
In
rs/car
Saving Detail
Before After
10.25
250
No’s
of
comp.
Tool Life
Before After
350

19. 19/15
19
COST REDUCTION IMRPOVEMENT THEMES
SNO THEMES IMPROVEMENTS THEME
1 Inventory cost reduction 43 No’s
2 Buying cost reduction 44 No’s
3 Consumption cost reduction 28 No’s

20. 20/15
20
THANK YOU