meeting

3. CLUSTER MEMBERS
L.K. Auto Engineering, Noida
Tuff Engineering, Noida
Minda Wire Links Pvt. Ltd., Noida
Mayank Engineering, Noida
Mars Industries, Gurgaon
Minda Instruments Ltd. Pune,
Sylea, Chennai
Sylea, Pondichery
Sylea, Pithampur
Sylea, Murbad (Mumbai)
PROJECT PERIOD
24 Months
MISSION
World Class Manufacturing of Products through World Class Processes and achieve
Global Competitiveness.

4. COMMON GOALS
Build exactness in operation to achieve a strong foundation by ensuring
basic conditions.
Build Infrastructure for Continuous Improvement through retaining of
improvements and consistency.
Build capabilities for breakthroughs to achieve breakthroughs & Lean for
Competitiveness.

5. APPROCH :
 Cluster approach is the best way to learn together, progress together
and achieve together.
 Draw a roadmap (Annexure – A) for the cluster in line with that of MHL.
 Current status will be identified based on the audit of these companies as
per audit system of MHL.
 Implementation methodology will include following :
i) Training for the various parameters covered by the roadmap.
ii) Master Action Plan for implementation of parameters.
iii) Implementation of the processes and techniques in the plants.
iv) Review and Monitoring of the implementations in the plant.
v) Report effectiveness of the implementations.
vi) Horizontal Deployment of the implementation in the plant.

6.  The monitoring will be through internal audits and internal review meetings which will
be conducted weekly/fortnightly.
 An external review in the form of monthly review meeting (MRM) will be conducted once
in a month, in rotation at different plants. Mr. Ashok Minda and Mr. Ram Mohan will
participate in these MRMs.
TRAINING
Training of Key personnel will be conducted by the Teams from MHL& external experts. The
training of all employees of plants will be conducted by local faculty . Training Material will be
provided by MHL.
PROJECT REVIEW & MONITORING
This will be done through Plant Review Meeting (PRM) which will be conducted every fortnight
and Monthly Review Meeting (MRM) which will be conducted every month. The review meeting
will cover following aspects.:
I) Details on Training Completed : Topic, Level Covered, No. of Employees Trained and
feedback on training.
II) Projects implemented and their effectiveness/benefits. Horizontal Deployment of the
projects. Presentation of the best project as identified by the local team. The presentation
should bring out clearly the improvements/changes in the form of “before” and “After”
situation.
III) Details of future projects (next 15 days for PRM and Next one month for MRM) including
training planned.

7. SL.NO. PARAMETER MEASURE BENCHMARK
1 Quality Customer Rejection 50 PPM
In – House Rejection 100 PPM
Vendor Rejection 100 PPM
Handling/Transit/Storage Rejection 100 PPM
2. Inventory Inventory Turn Ratio 35
3. SMED <10 Minutes 100%
4. Value Addition Value Added to Employee Cost 6
5. Safety Accident Severity 0
Accident Frequency 0
6. 5’S’ Audit Score 75% (Min.)
7. Absenteeism Total (including Leave) 5%
8. Direct to Indirect Employee Ratio 1:0.5

8. SL.NO. PARAMETER MEASURE BENCHMARK
9. Kaizen No. of Kaizen / Employee/Year,
Employee Participation
12
100%
10. Quality of Inventory Green (Required Today) 96%
Grey (Required Later Than Today) 3%
Red ( Not Required) 1%
11. Process Capability Cpk >1.67
12. VSM Processing Time as a % of Lead Time 25%
13. OEE 80%
Details on benchmark parameters are given in Annexure-B. The local team will work out their
targets based on the present status and their action plan to achieve the required improvement
rate to reach the benchmarks.
GRAPHS AND VISUAL DISPLAYS
Photographs of “Before” and “After” for each parameter, as applicable.
Worst Point Photography.
Graphs as per enclosures CN FORMAT

9. ANNEXURE – B : KEY BENCHMARK PARAMETERS
1) CUSTOMER REJECTION = Material Returned (Qty.) X10 PPM
Material Shipped (Qty.)
2) IN-HOUSE REJECTION = Material Rejected (Qty.) x 10 PPM
Material Produced (Qty.)
3) VENDOR REJECTION = Material Rejected (Qty) X 10 PPM
(IN COMING REJECTION) Material Received (Qty.)
4) REJECTION DUE = Material Rejected due to damages (Qty.) X 10 PPM
TO DAMAGES Material Produced (Qty.)
5) INVENTORY TURN RATIO(ITR) = Material Cost of Sale (Annualized)
RM+WIP+FG Inventory
6
6
6
6

10. ANNEXURE – B : KEY BENECHMARK PARAMETERS
6) SMED = Status of SMED X 100 %
Total Critical Machines
7) VALUE ADDED TO = Sales – Variable Cost (Annualized in Rs. Lacs)
EMPLOYEE COST Employee Cost (Annualized Salaries,Wages &Benefits)
8) ACCIDENT SEVERITY RATE = Total Man-hours Lost x 10
Total Man-hours
9) ACCIDENT FREQUENCY RATE = Total Number of Accidents X10
Total Man-hours
10) 5”S” Audit Score = Actual Score X 100 %
Maximum Score
11) ABSENTEEISM = Total Absent Man days X 100 %
Total available Man days
6
6

11. ANNEXURE – B : KEY BENCHMARK PARAMETERS
12) EMPLOYEE RATIO = Direct Manpower (Nos.)
Indirect Manpower (Nos.)
13) NUMBER OF KAIZENS = Number of Kaizens (Cumulative)
PER EMPLOYEE No. of Employees
14) VALUE ADDED RATIO = Value Adding Time X 100 %
Total lead time
15) OVERALL EQUIPMENT = Machine Availability X Performance Efficiency X %
Efficiency (OEE) Rate of Quality x 100
Machine Availability = Planned Time – Down time
Planned Time
Performance Efficiency = Theoretical Cycle Time
Actual Cycle Time
Rate of Quality = Good Parts (Qty.)
Parts Produced (Qty.)

12. 1. Identify Plant Coordinator for
Improvement activities
2. Define Responsibilities of Plant
Co-ordinator.
3. 5’S’ Activity
3.1 Identify coordinator for 5’S’
3.2 Training of Key-personnel.
3.3 Training of Employees in line
with the training of key personnel.
3.4 Divide the unit into number of
Zones & Sub-Zones.
3.5 Define Organisation comprising
following members for
implementation
- Coordinator for 5’S’
- Zonal Heads
- Sub-Zonal Heads
- Sub-Zonal Members
3.6 Define responsibilities of
coordinator, Zonal – Head & Sub-
Zonal Head.
3.7 Presentation of best case study
of MHL to key personnel.
3.8 Conduct Red-Tag Campaign
across the plant (2 Rounds)- 1’S’
ACTION
JULY,
03
AUG,
03
SEP,
03
OCT,
03
NOV,
03
DEC,
03
JAN,
04
MAR,
04
APR,
04
MAY,
04
FEB,
04
JUNE
04
PERIOD

13. 3.9 2’S’ & 3’S’
3.10 Weekly Internal Audit by
Respective Sub-Zonal Heads.
3.11 Monthly External Audit by
Teams comprising Coordinator
and Zonal Heads.
3.12 Bi-Monthly External Audit
Comprising Unit Head, Corporate
Rep. & Coordinator.
4. 3’M’ Activity
4.1 Identify coordinator for 3’M’
4.2 Training of Key personnel.
4.3 Training of employees in line
with the training imparted to key
personnel.
4.4 Define organization
comprising coordinator for 3’M’
and Section Heads.
4.5 Define roles and
responsibilities of coordinator and
Section Heads.
4.6 Identification of about 500 –
3M’s (MUDA – 7 TYPES, MURA &
MURI).
ACTION
JULY,
03
AUG,
03
SEP,
03
OCT,
03
NOV,
03
DEC,
03
JAN,
04
MAR,
04
APR,
04
MAY,
04
FEB,
04
JUNE
04
PERIOD

14. 4.7 Elimination and Horizontal
deployment.
4.8 Weekly review by coordinator.
4.9 Fortnightly review by Unit
Head.
5. My Machine Campaign
5.1 Identify number of Machines
for “My machine Campaign”
5.2 Form dedicated cross
functional Teams (CFTs)
Comprising Managers and people
from office area, Production,
Quality, Prodn. Eng. And Maint.
5.3 Training of the Team on
concept and importance of the
Campaign.
5.4 Weekly “My Machine” Activity
by each Team.
5.5 Identification and elimination
of small defects.
ACTION
JULY,
03
AUG,
03
SEP,
03
OCT,
03
NOV,
03
DEC,
03
JAN,
04
MAR,
04
APR,
04
MAY,
04
FEB,
04
JUNE
04
PERIOD

15. 5.6 Achieve Zero Breakdowns
continuously for 3 months.
5.7 Prepare Standards for handing
over the Machine to the operator
and Maint. Dept. with a clear
preventive maintenance schedule.
5.8 Horizontal Deployment to other
machines.
ACTION
JULY,
03
AUG,
03
SEP,
03
OCT,
03
NOV,
03
DEC,
03
JAN,
04
MAR,
04
APR,
04
MAY,
04
FEB,
04
JUNE
04
PERIOD

16. Road Map of Minda Cluster
Input Process Result Impact
Takt Time
Kanban linkage
Logistics Lean &
Inventory
Management
Product
Development
Development
Capability
Lean
Thinking
In-house Self-reliant
Product Development
Product Engineering
Standards
Value Engineering
CAD/CAM
Containerization
Process capability
Standards
Poka Yoke
5’S’
5S
3M
My machine
campaign
Period
Phase-4
Jan,05
To
June,05
Red Tag
SMED
DCS
Stability In Process
Reduced Lead Time
Customer Satisfaction
High ITR
Working Capital Mgmt.
Just-in Time Delivery.
Reliability
Ready to Use (RTU)
Quality
Management
Reduced Customer Rejection
Reduced Customer
Complaints
Reduced Warranty Claims
Reduced Vendor Rejection
Reduced In-house Rejection
Quality
Excellence
Multi - Skilling
Daily Management Discipline
Waste Elimination
Operator Ownership
Job Enlargement /
Enrichment
Culture
Improvement
Phase-3
July,04
To
Dec,04
Phase-2
Jan,04
To
June,04
Phase-1
July,03
To
Dec,03
Direct on Line (DOL)

17. JULY,
03
AUG,
03
SEP,
03
OCT,
03
NOV,
03
DEC,
03
1’S’
2’S’
3’S’
4’S’
5’S’
1’S’-SORTING, 2’S’-SYSTEMATIC ARRANGEMENT, 3’S’ -SPIC & SPAN, 4’S’- STANDARDISE, 5’S’-
SUSTAIN

18. 1. Overall responsibility for Group wise Coordination of the Minda Cluster
Project for Quality & Productivity Improvement.
2. Formulate Strategies and plans for continuous improvement.
3. Ensuring Group-wide dissemination of learning of the Minda Cluster
Project.
4. Coordinating with external consultants for project related activities.
5. Coordinating with unit head and coordinators of cluster members for
the smooth and faster implementation of this project.

19. 6. Supporting and facilitating the unit head and coordinators of cluster
members in accomplishing Benchmark Parameter.
7. Coordination and preparation of monthly cluster review meetings and
other such meetings/seminars scheduled to be held at MHL or other
plants.
8. Presenting and reporting progress of the cluster in monthly review
meeting.

20. 1. Exposure to Japanese manufacturing management practices
implemented at MHL – Noida under ACT-CII Project.
2. Sharing of issues, problems, difficulties and knowledge with people of
MHL-Noida who have implemented these concepts.
3. Structured system of monitoring and feed back with the help of cluster
Coordinator.
4. All these leading to much easier implementation of change process in
the company.

21. HOME WORK TO BE PRESENTED BY CLUSTER MEMBERS IN
FIRST MONTHLY REVIEW MEETING TO BE HELD
AT MHL-NOIDA ON 28TH JULY, 2003
1. MINDA WIRE LINKS LTD. , MINDA INSTRUMENTS, MARS INDUSTRIES,
MAYANK ENGG., L.K. AUTO & TUFF ENGG. WILL PRESENT COVERING DETAILS
GIVEN BELOW:
 5’S’ TRAINING : 100% COVERAGE
 SCRAP YARD PHOTOGRAPHS
 WORST POINT PHOTOGRAPHS
 3’M’ TRAINING : 100% COVERAGE
 10 IDENTIFIED MUDAS ALONG WITH ONE SHINING EXAMPLE
5’S ACTIVITY
- Creation of Zones and Sub-Zones
- 5’S’ Organization Structure
- Roles and Responsibilities of Coordinator, Zonal Heads, and Sub-Zonal Heads.
- Red – Tag Campaign : 2 Rounds. Please present quantified list of items Red-Tagged,
their value and details of red-tagged items disposed by you.
THE PRESENTATION WILL BE MADE BY RESPECTIVE UNIT HEADS

22. 2. FOR SYLEA GROUP MEMBERS : THE RESPECTIVE UNIT HEAD WILL PRESENT
FOLLOWING DETAILS :
• 5’S’ TRAINING STATUS AND COVERAGE ACHIEVED
• 5’S’ ORGANISATION CREATED
• Creation of Zones and Sub-Zones
• 5’S’ Organization Structure
• Roles and Responsibilities of Coordinator, Zonal Heads, and Sub-Zonal Heads.
• Red – Tag Campaign : 2 Rounds. Please present quantified list of items Red-Tagg
their value and details of red-tagged items disposed by you.
• Scrap Yard Photographs
• Worst Point Photographs
3.COMMENTS ON :
(a) Proposed Gantt chart for 5’S’ implementation, &
(b) Master action plan
NOTE : The members are requested to bring their presentation in soft copy form on
re-writable CD.

23. 1. TIPS ON PHOTOGRAPHS & PRESENTATION
(a) Follow the MHL Presentation Standards
(b) Photographs, “before” & “after” should be always from the same position.
(c) Focus must be on the spot that you want to show as changes. If necessary use
arrow to indicate.
(d) Title the photographs
(e) Always date the photographs
(f) Always print “before” in red on left and “after” in green on right
(g) Presentation will be on double screens. On one screen there will be main
Microsoft Power Point Presentation. On OHP, there will be supporting slides to
illustrate examples of any point being made.
2. TIPS ON 5’S’ ACTIVITY
(a) The first batch for training of 5’S’ should comprise the 5’S’ organisation team.
(b) The zones should be created keeping following considerations:
- Physical Locations.
- Number of Employees.
- Area
- Ensure that one function does not fall in two zones

24. (c) 5’S’ ORGANISATION :
COORDINATOR
ZONAL HEAD - 1 ZONAL HEAD -2 ZONAL HEAD - 3
Sub-Zonal Head -A Sub-Zonal Head -B Sub-Zonal Head -C
(d) Roles and Responsibilities : Refer to 5’S’ Presentation by Dr. S.Shekhar.

25. 3. TIPS ON “RED-TAG” COMPAIGN
(a) The red tag strategy is a simple method for identifying potentially unneeded
items in the factory, evaluating their usefulness and dealing with them
appropriately.
(b) An item with red-tag is asking three questions.
- Is this item needed ?
- If it is needed, is it needed in this quantity ?
- If it is needed, does it need to be located here?
(c) Once these items are identified, they can be evaluated and dealt with
appropriately as given below
- Held in a “ Red-tag holding area” for a period of time to see whether they are
needed.
- Disposed off.
- Relocated
- Left exactly where they are.
(d) Red – Tag Holding Area :
- A company-wide red tagging effort needs to establish a central red-tag holding
area. This area is used to manage the following items that can not or should
not be disposed off by individual departments or production areas.

26. 3. TIPS ON “RED-TAG” COMPAIGN
- Each department or production area that participates in red-tag campaign also
needs a local red-tag holding area. The local area is used to mange the flow
of red-tagged items within a department or production area.
(e) Red-Tagging process involves following steps
(i) Launching of the Red-Tag Campaign.
- Organizing a team.
- Organizing supplies.
- Organizing a time or schedule to perform red-tagging (2 days)
- Setting aside a red-tag holding area (Central Location to start with)
- Planning for disposal of red-tagged items.
(ii) Identifying Red-Tag Targets :
- The specific types of items to evaluate are inventory, equipment, tools, jigs,
and space.
- It is better to define a smaller area and evaluate the items fully in available
time.
- As per normal Experience, we can expect 4 red tags per shop floor
employee. That is, a work shop with 50 employees should target 200 red-
tagged items.

27. (iii) Set Red-Tag Criteria
The most common criterion followed is the next month’s production schedule.
The items needed for that schedule are kept in their location. Items, not
needed for that schedule or moved to a separate location or disposed off.
Following factors determine whether an item is needed or not.
- The usefulness of the item to perform the work on hand.
- The frequency with which the item is needed.
- The quantity of the item needed to perform this work.
Each company must establish its red-tagging criteria.
(iv) Make Red-Tags : 200 Nos. of Red-tag are given to each members to start
the process. Further quantity of Red-tags are to be organised locally by
members.
(v) Arrange the Red-Tag : You should red-tag all identified items without
evaluating what to do with them.
(vi )Evaluate the Red-Tagged Items: The various options are given below.
- Keep the Item where it is.
- Move the Item to a new location in the work area.
- Store the Item away from the work area.
- Hold the Item in the Red –Tag holding area for evaluation. Allow one week to
people to take the Items required.
- dispose off the Items.

28. Disposal Methods may include following .Disposal should take place within a week.
Make a CFT to decide on disposal.
- Return it to the vendor.
- Distribute it to a different part of the company.
- Lend it out .
- Sell it.
- Throw it away.
(vii) Document the results of Red-Tagging :
Each company need to create their own system for logging and tracking
necessary information as Red-tagging takes place. The system may involve a
written Log Book in the red-tag holding area. It may involve entering data from
the tag into a computer system. Documenting the results of red-Tagging process
allow the company to measure the improvements and saving produced.

29. Minda Huf Limited
Name of Presentation Chart
Date
17.5 mm 29.5 mm 38.5 mm
6 mm
34.5 mm
1.5mm
17 mm
30 mm
8 mm
13.5 mm
21.5 mm
•Only ARIAL Typography is to be adopted
•Use a minimum of 19 points for headlines and 14 points for main text.
•The background color has to be white for external presentations to customers. However for Internal presentations within the
departments, colored backgrounds can be used.
•The Headline colour has to be BLACK