The document discusses operational improvements at Thermax's Chakan facility through implementing 5S, value stream mapping, and Six Sigma tools. The Chakan facility was experiencing issues like lack of organization, high costs, and inefficient processes. A kaizen team implemented 5S to tidy the facility and establish clear organization. They also mapped processes to eliminate waste and reduce costs using Six Sigma. The turnaround efforts aimed to improve supply chain performance metrics like on-time shipment and inventory turnover.

1. Kaizen Presentation
Chakan Assembly & Consolidation Unit
Heating Division
Sustainable Solutions in
Energy and Environment
(Continued Operational
Excellence)

2. CASE STUDY ON
ESTABLISHING AN INTEGRATED SUPPLY CHAIN
BY
5 S IMRPOVEMENT
ELIMINATION OF WASTE BY CONSIDERING VALUE STREAM
PROCESS MAPPING
COST REDUCTION BY USE OF SIX SIGMA TOOLS
Competition is no longer between companies;Competition is no longer between companies;
It is between supply chainsIt is between supply chains
Operational Excellence
TURNAROUND OF CHAKAN FACILITY
BY LT Col Vikram Bakshi (rted)
Team member : P Tiwari

3. AGENDA
INTRODUCTION TO COMPANY AND
PRODUCT AND SCM OPERATIONS
CURRENT SCM PROBLEM
TURN AROUND WITH
5 S
VALUE STREAM PROCESS MAPPING
SIX SIGMA TOOLS

4. Introduction to Businesses
Boiler & Heater
• Large capacity
power boilers
• Thermal oil /
water heaters
• Package boilers
• Energy
recovery
systems
Turnkey Power Plants
• Solid fuel based
• Gas based combined
cycle
• Waste heat recovery
based
• RE based incl.
Biomass, Bagasse,
solar, etc.
• O&M of power plants
Chemicals
• Ion exchange resins
• Cooling water
chemicals
• Fireside chemicals
• Polyelectrolyte
Water and
wastewater
• Wastewater &
Effluent water
treatment systems
• Water recycling
• Waste management
Enviro
•ESP & Bag filters
• Scrubbers
• Air purification
• Retrofit & Revamp
Boilers & Heaters Cooling & Heating Power Generation Chemicals & Water Air Pollution Control
THERMAX
Renewable
Solar
• Heating
• Cooling
Cooling
• Exhaust & Multi-
energy fired chillers
• Steam fired chillers
• Hot water fired
chillers
• Direct fired chillers
Heating
• Steam/Hot water
power plants
• Packaged solid/oil/gas
fired boilers
• Fired thermic fluid
heaters
• Exhaust waste heat
recovery boilers

5. What is a Boiler?
©© UNEP 2006UNEP 2006
Introduction to ProductIntroduction to Product
• Vessel that heats water to become
hot water or steam
• At atmospheric pressure water
volume increases 1,600 times
• Hot water or steam used to transfer
heat to a process

6. ©© UNEP 2006UNEP 2006
Introduction to Boiler systemIntroduction to Boiler system
BURNERBURNER
WATERWATER
SOURCESOURCE
BRINEBRINE
SOFTENERSSOFTENERS
CHEMICAL FEEDCHEMICAL FEED
FUELFUEL
BLOW DOWNBLOW DOWN
SEPARATORSEPARATOR
VENTVENT
VENTVENTEXHAUST GASEXHAUST GAS
STEAM TOSTEAM TO
PROCESSPROCESS
STACKSTACK DEAERATORDEAERATOR
PUMPSPUMPS
Figure: Schematic overview of a boiler room
BOILERBOILER
ECOECO--
NOMINOMI--
ZERZER

7. ©© UNEP 2006UNEP 2006
Types of BoilersTypes of Boilers
1. Fire Tube Boiler
2. Water Tube Boiler
3. Packaged Boiler
4. Fluidized Bed (FBC) Boiler
5. Stoker Fired Boiler
6. Pulverized Fuel Boiler
7. Waste Heat Boiler
8. Thermic Fluid Heater (not a boiler!)
What Type of Boilers Are There?

8. Classification of Steam
Boilers
Vertical or Horizontal
Stationary(Power plant,industrial,central heating and
combined power and heating
boilers.),Portable,Locomotive or Marine
Internally Fired or Externally Fired (Lancashire and
Locomotive Boilers)
Solid,Liquid or Gas Fired
Fire(Smoke)Tube:Water is outside the tubes while
the hot gases are inside the tubes
eg.Vertical,Cochran,Lancashire,Cornish,Locomotives,
etc) or
Water Tube: Contain a large number of small tubes
through which water circulates,the fire and hot gases
being outside of the tubes.eg.Babcock and Wilcox,
Stirling and High pressure Boilers etc.)

9. STEAM BOILERS, MOUNTINGS & ACCESSORIES
Classification of Boilers:
Boilers may be classified according to the following-
1.Relative position of Hot gases and Water
a)Fire tube boiler:
The hot gases passes through the tubes that are
surrounded by water. Fire tube boilers are also
known by certain common names-
i) Horizontal return tubular
ii) Locomotive fire box
iii) Scotch marine and,
iv) Vertical tubular

10. ©© UNEP 2006UNEP 2006
Type of BoilersType of Boilers
(Light Rail Transit Association)
1. Fire Tube Boiler
• Relatively small steam
capacities (12,000
kg/hour)
• Low to medium steam
pressures (18 kg/cm2)
• Operates with oil, gas
or solid fuels

11. STEAM BOILERS, MOUNTINGS & ACCESSORIES
b) Water tube Boiler:
The water passes through the tubes and the hot
gases produced by combustion of fuel, flow
outside. This type of Boilers designated by the
following common names:
i) Babcock and Wilcox Boiler (straight but
inclined tubes which connect the headers).
ii)Stirling Boiler (multitubular boiler having bent
tubes that connect boiler drums to headers).

12. ©© UNEP 2006UNEP 2006
Type of BoilersType of Boilers
Water Tube Boiler
(Your Dictionary.com)
• Used for high steam
demand and pressure
requirements
• Capacity range of 4,500
– 120,000 kg/hour
• Combustion efficiency
enhanced by induced
draft provisions
• Lower tolerance for
water quality and needs
water treatment plant

13. ©© UNEP 2006UNEP 2006
Type of BoilersType of Boilers
(Light Rail Transit Association)
Fire Tube Boiler
• Relatively small steam
capacities (12,000
kg/hour)
• Low to medium steam
pressures (18 kg/cm2)
• Operates with oil, gas
or solid fuels

14. ©© UNEP 2006UNEP 2006
Type of BoilersType of Boilers
(BIB Cochran, 2003)
Packaged Boiler
Oil
Burner
To
Chimney
• Comes in complete
package
• Features
• High heat transfer
• Faster evaporation
• Good convective
heat transfer
• Good combustion
efficiency
• High thermal
efficiency
• Classified based on
number of passes

15. INTEGRAL FURNACE BOILERS
Fire tube type three pass conventional shell boiler for the process industry.
EOL
PP

16. FURNACE
SMOKE
TUBE
SHELL
REVERSAL
CHAMBER
FRONT
DOOR
BOILER PARTS
Capacity of Boiler in F & A 100 deg C.
EOL
MAUNTINGS

17. BOILER MOUNTINGS AND ACCESSORIES
 Boiler Mountings:
The necessary devices installed
or mounted for the safety of
boiler and its control are called
boiler mountings.
Two water level indicators – 2
Two safety valves.
Combined high steam and low
water safety valve.
Fusible plug

 Boiler Accessories:
The devices which are installed in
the boiler for their efficient
operation and smooth working are
called Boiler Accessories
Water heating devices.
Water feeding devices.
Super heater
Economizer
Air preheater

18. SCM OPERATION OVER VIEW
Boiler Pressure Part
( PP) Manufactured at
Chincwad Plant
EOL Brought Out from
Suppliers as
Component Inventory
Steam & Water
mountings
Combustion & Control
system
Control panel
Staging Inventory =
Consolidation &
Assembling of Pressure
Part + EOL as Finished
Good Units takes place
at Chakan Unit Facility
FG Units are Dispatched
after receiving Dispatch
Instructions from
Regions
Commercial Units makes
it as Invoiced Units
from Chakan Facility

19. BACKGROUND SCM
PROBLEM
Chakan Rohakal facility for Assembly Finished Goods
Default or Delayed Invoiced Units
Finished goods inventory (FGI) which are not invoiced.
Increases Staging Inventory
Affects Component inventory turnover
Cost of material become obsolete are more
Products to be also ready on time when they are scheduled and
material availability as per the schedules.
Adding unaccounted Pressure parts and inventory

20. CHAKAN UNIT ALSO NEEDED
A TURN AROUND
Problem No 1 : Lack of 5 S
 Facility looked cluttered and un-organized.
 Can’t find empty locations . Congested isles
 No waste or scrap management
Problem No 2 : Increased opex cost
 Usage of Cranes
 Demurrages waiting charges
Problem No 3 : Weak Processes
 Ill-defined process flows.
 No visible floor controls for Input and output product flows .
 No documented SOP’s or Methods defined
 Poor people productivity .
o No KPi’s / metrics
o Lack of coordination between Thermax and 3 PL Provider

21. Problem No 4 Inbound inventory
Slow receipt processing time resulting in the necessity for high
inventory carrying cost through the supply chain
Cluttered inbound docks . Trailers in the parking lot full with
inbound
Problem No 5 Inventory binning
Poor Inventory stock and location controls -Can’t find stock for
customer orders . Excessive order pick times
Problem No 6 Invoicing
Need to tweak Sales & Marketing DI Plan .
Problem No 7 Dispatch
Picking productivity poor which are driving additional labor and
Partially picked orders leading to demurrages costs .
Regularly needing overtime to meet customer orders
Stock loss / FG not completed before Contaner arrived was an
everyday occurrence

22. Problem No 8 Inventory Build up
 Large Number of Pressure Parts with aging till One year
 High cost of Inventories with aging till more than 365 days
Problem No 9 Lack of up gradation of infrastructure
 Low standard basic facilities
Problem No 10 : Lack of HR/IR /Safety Issues compliances

23. TURN AROUND PLAN
BY OPERATIONAL EXCELLENCE
TARGETS
5 S Discipline
Reduce SCM process variation
Improve On Time Shipment (OTS)
Increasing inventory turnover
Reduce cost of crane per day
Reduce cost of Demurrages

24. KAIZEN TEAM
Lt Colonel Vikram Bakshi ( retd) Thermax
Pruthviraj Tiwari MLL
Deepak Kakade from MLL
Manoj Saraf from Thermax
Sandeep Gaikwad from Thermax
Chetan Bhosale from Thermax
Sub N Patil from MLL
N Hule from Thermax

25. KAIZEN THEME
To make SCM process in Chakan Unit
Operational Excellence and Cost
effective into an Integrated SCM

26. 5 S
TO CLOSE THE GAP OF
UNTIDYNESS
Project Team : MLL team led by Pruthviraj Tiwari
Deepak Kakade,
Thermax team : Manoj Saraf, Sandeep Gaikwad,
Chetan Bhosle
Naryan Hule for Scrap management
Project Owner : Lt Col Vikram Bakshi ( retd)
Project Mentor: Mr A G Khrisagar

27. LACK OF 5 S CULTURE
Facility looked cluttered and un-organized. Can’t find any empty
locations .
Congested isles of mixed items Product and Project
Inaccuracy of Location.
Wasting manpower and time searching for material,
OTP converting to FG was also low.
Business KPIs getting affected by holding Deliveries.
Leading to increased losses in demurrages and FOCs.
No waste or scrap management.
Safety was an issue shifting material in tight lanes

28. CLUTTER AND CHAOS

29. EXAMPLE OF
DAMAGES
EXPENSIVE ELECTRONIC PUMP
OUTSIDE IN OPEN RAIN

30. HOW WE WENT ABOUT
GETTING 5 S IN CHAKAN FACILITY
Text
Set in Order
To confirm space for everything and if everything is in its place
Benefits: Productivity/ Cost saving/ Accident free/Prevent errors
Wastage was visible to be eliminated
Standardize
Make the rule , enforce to make them follow it
Sort
Identified Scrap non usable / Working Order/ Classification family
Shine
Clean and Inspect
Sustain
Make it as an Habit
5 S CULTURE

31. Action Implemented
Sort
Proper area identified for each material and shifted accordingly .
Area distributed on Scrap /non usable / Working Order/ Classification family PU wise
Set in Order
Space for everything is in its place at all times.
Loose material was identified and kept in bins.
Additional racks for vertical uplifting to create space
Shine
Clean and Inspection work culture installed .
Scrap Management put in place.
House Keeping was enforced strictly
Area wise allocation for up keep for better
Accountability enforced for every sector had an owner to ensure its upkeep
Standardize
We Made the rule for proper inward as per space management , enforce to make them
follow
Sustain
We have Made it as an Habit now . Walk in anytime to see Top standards of 5 S

32. 5S IN OUTER AREA

33. HOW WASTE/ SCRAP WAS SPREAD ALL
OVER

34. SCRAP DISPOSAL PLAN IMPLEMENTED
Scrap Bins
Timely and
Proper disposal
of scrap
Wooden/ Plastic/
Grass
Scrap was
unmanageable
and occupying
space
IMPLEMENTEDCURRENT/PAST
STATE

35. OPEN YARD LAID OUT FAMILY WISE PRODUCT

37. MISC WORK IN AREA
SKID WORK and Pump assembly
work facilitating OTP for dispatches
and decrease space load in main
chincwad plant
Moral lifted of team with better
kitchen /water/ dinning facilities
Hand washing facilities/ fly catcher
for hygiene created near Dinning
hall
Fire precaution and fighting
measures implemented and security
measures improved .
Trees coming up and in one year
time the area will be a green belt with
trees all around. Total 150 plants
planted around the facility.
TREE PLANTATION
FIRE FIGHTING
KITCHEN
DINNING
HALL
GUARD
ROOM
WATER
PIPE LAYING

38. Pump Assembly
Area
All pump were on Ground
and it wad difficult to
remove and do the
assembly work
New 4 Rack has been
installed and total 100
pumps are been binned in
it.
Total Space Saved
17 width X76 length= 1292 sq.ft

39. CHAKAN
BEFORE REVAMP
FAN PROPER LAY OUT EOL PROPER LAY OUT PRESSURE PART
PROPER LAY OUT
FG PACKED CASES
PROPERLY LAID OUT
CHAKAN
AFTER THE REVAMP
CHAKAN STORES PROPER
LAID OUT SCRAP MANAGEMENT
TEAM THAT
MADE IT POSSIBLE
Pressure Parts and EOL stored in Chaotic manner Scrap spread
all over
Store haphazard lay put

40. BENEFITS
All Material in open yard has been segregated family wise .
Easy and traceability of material.
New racks has been installed in open yard
New loading location has been created for Domestic, Export and Project
No crisscross of crane movement
loading time has been decreased by half and hour.
Roads has been cleared, and zero accident has been reported till now.
Turnaround time for unloading and loading has been decreased.
Increased space management for timely inward and quick dispatches
Zero damages for material.

41. To Change with Intent...
….For The Good of All
…..Continual Improvement
PART TWO
KAIZEN EVENTS TO IMPROVE OPERATIONAL
EFFICIENCY

42. How we Conducted
KAIZEN EVENT
VALUE ENGINEERING
PROCESS
Identifying Internal Customer
needs
Floor control
Documented SOP
Identifying Ownership
KPI
Routine Administration
Work Out with Employees
Pending GRN Control limit
Inventory Binning Accuracy
Picking and Dispatches
Readiness
Quick Strike
1-6 Days
Process Mapping
Basic “Blocking & Tackling”
 Tools
Simple Tactical Focus
Obvious Quick Fixes
Containment
Plug Holes in Dike

43. Develop
Value Stream
Map
Organize Around
The Process
~Team Based~
Conduct a
SIPOC Analysis
& Focus
On Handoffs
Gather The
Voice of The
Internal Customer
*Measure Key
Characteristics
As Identified
Identify Gaps
From VSM
Conduct: Kaizens,
Belt Projects
Establish Process
Metrics
Establish Intrinsic
Competition
Based on Metric:
Sigma Score / FPY
Strategy:
Establish Flow
Apply Lean~
Sigma Methodology
Moving to Process
Management
Establish
KPI Score
Cards &
Feedback Methods
The Aim is to
Attack Waste
In all Systems & Align
The Processes

44. Defining SCM Processes
Characteristics Service Manufacturing
Ownership
Boundaries
Control Points
Measurements
Corrective Action
Tends to be ambiguous, has
multiple owners and crosses
functional areas.
Often unclear due to cross-
functional nature.
Often non-existent, found in
areas where TQM is in place.
Often non-existent, hard to find
except in areas where TQM is in
place.
Unusually reactive,
organizational restructuring or
technology a common solution.
Usually clearly defined
Clearly defined
Clearly established and
defined
Easy to define and manage
Performed during and
after the process

45. Why Process is SO important?
Business Differentiation
- Competitive Advantage
- The question is not whether
to change, but
how to change
Financial Pressures
- Reduced Costs
- Increased Output
- Consistent Quality
Technology
- Directly supports processes
- Naturally cross functional and
organizational boundaries

46. Formulate Process and Project Vision
Vision: Provide Customers with a quality product delivered in OTP period or less.
STEP: Identify Project Performance
Improvement
Targets
Customer Satisfaction
Eliminate non-value-added activities
Reduce # of exceptions
Improve the reliability of delivery
Increase customer satisfaction
Boiler Delivery within 90 minutes or less of order
Satisfied Customers
Delivery service vehicles are unreliable
Delivery by routine SCM is not within our complete control
KPI’s
Objectives:
OTP
Constraint
s:

47. Define the Process
Boundaries
Where does the “Process” begin and end?
Clarify Perceptions
Comparability - before & after “apple-to-apples
Planner
Planning
Material
Manufacturing
Plant
PaymentAccepted
Order
Delivered
Transport
Quality
3 15
Number
of Days in
OTP
70 days 88 days EOL 2 DAYS

48. Process Components: What else do we need to
know?IGOE*= Input, Guide, Output,
Enabler
Something that is utilized consumed by or transformed by an
activity (process); Connects to left side of ‘box’
something that determines how or when an activity occurs but is
not consumed; Connects to top of ‘box’
something that is produced by or results from an activity/process;
Flows from right side of ‘box’
something (person, facility, system, tools, equipment, asset or
other resources) utilized to perform the activity; Connects to
bottom of ‘box’
Note: Enablers are NOT consumed.
An IGOE might be a physical object, rule, goal, principle or piece of data, a machine, a computer
system or anything that is relevant to the process.
*Note: These concepts are based on upon the principles and rules of IDEFO, which refers to IGEOs as
Inputs, Controls, Outputs, and Mechanisms - ICOMs); ICOM=IGOE
Input:
Guide:
Output:
Enabler:

49. Identify Inputs and
Outputs
Inputs Transformed into
Outputs
Physical
transformation
Locational
transformation
Informational
transformation
Raw
material Prepare Boiler
Chincwa
d
Chakan
Verbal
Info
Order Details

50. Identify IGOEs via Enablers
Inquiries, Reference, Guidance,
Knowledge
Results
“Why am I here?”
Information to
be changed

51. Process Components (IGOEs)
Policies, Standards, Regulations,
Laws, Knowledge, Triggering Events
Informatio
n Materials
Results
Informatio
n
Deliverable
s Products
Human Resources, Tools, Equipment,
Systems, Facilities
Guides
Process Step
Sub-Process Step
Inputs
Outputs

52. Project Champion
- Ensures the delivery and acceptance of the project results:
may be the process owner.
- Clears the path and warns of road blocks
- Resolves political and cross organizational escalate
- Takes responsibility for the ongoing operation of the
Project Acceptor
- Coordinates the multiple vested interests of the
- Acts as project conscience
- Accepts the project results on behalf of the process champion
- Can also be the Project Champion
Project Manager
- Plans and manages the project day to day
- Motivates and manages the team
- Focal point for project issues
- Delivers the business solution to the Acceptor
Project Team Member
- Dedicated to conduct the day to day activities of the BPR process
- Understands the business requirements and delivers to the Acceptor
- Brings either BPM technique or SME knowledge or skills
- Coordinates an extended team relationship
Project Team Structure
Team Responsibilities
Core Team:
Assumes an internally managed project
Project
Champio
n
Project
Acceptor
Project
Manager
Core Team
Members

53. Gather Process Information
Decompose Scoped Process into 3 - 7 Sub-Processes (Activities)
Develop Modeling Standards
Model the Process
Determine Process Roles and Responsibilities
Understanding Processes






54. Cross-functional SCM activities
Place Order
Take Order
Receive
Order
Deliver
Order
Schedule
Delivery
EOL
SUPPLIER
Customer
PLANNER
Buyer
Assembly
Team
Transport
Team
Commercial
Team
Plant

55. MODELLING CURRENT PROCESS AT VARIOUS LEVEL
Sales Order
Input
By Planner
Plant
Operations
Buyers
Decision
PR
Drawing
PO
Supplier
Vendor
Chincwad
Storage
Assembly
&Consolidation
Center
Chakan
Decision
By planner
Decision
By
Buyer
Output
Wait &
Delay
Transport
Wait &
Delay
INWARD
Operations
QC
Decision
RTV
STORE
BINNING
WRONG
DOCUMENT
GRN
Monthly
Plan
Dispatch
Preparation
Of FG
COMP
INVENTORY
SHIPPING
PICK
PACK
REWORK
DI
BY COMMERCIAL
DISPATCH
CUSTOME
R
END
MISSING
ITEMS
FOC
CUSTOMEROUT
PUT
INVOICED
Commercial
Open yard
Wait &
Delay
For Back order

56. Understand Business
Processes
What I Model What I Model What I Model
- Measure the business
performance
- Evaluate alternative
organizational structure
- Explore Technology
opportunities
- Remove gaps
- Manage cross-functional
interfaces
- Allocate resources
appropriately
- Determine root cause
- Recommend change
- Validate understanding
- Confirm the boundaries
- Identify gaps

57. DEFINE: SIPOC
SUPPLIERSUPPLIER INPUTINPUT PROCESSPROCESS OUTPUTOUTPUT CUSTOMERSCUSTOMERS
FIRMFIRM SAMPLESSAMPLES CHECKING THE EOLCHECKING THE EOL
ITEMS AS PER CHECKITEMS AS PER CHECK
LIST (QAP), PRE INSPLIST (QAP), PRE INSP
REPORT BINNING ANDREPORT BINNING AND
DISPATCH.DISPATCH.
FINAL INVOICEFINAL INVOICE CHAKAN MATERIALCHAKAN MATERIAL
ORGANISATION (FOR ONWARDORGANISATION (FOR ONWARD
DESPATH OF STORES TODESPATH OF STORES TO
USERSUSERS
QUALITY DEPTQUALITY DEPT TEST PROCEDURESTEST PROCEDURES I NOTEI NOTE RECEIPT DEPARTMENTRECEIPT DEPARTMENT
RECEIPT DEPARTMENTRECEIPT DEPARTMENT DOCUMENTS /SYSTEIM ENTRYDOCUMENTS /SYSTEIM ENTRY INVENTORY DEPARTMENTINVENTORY DEPARTMENT
INVENTORYINVENTORY
DEPARTMENTDEPARTMENT
DOCUMENTS /SYSTEIM ENTRYDOCUMENTS /SYSTEIM ENTRY COMPOCOMPO
INVENTORYINVENTORY
PICKER AND PACKINGPICKER AND PACKING
DEPARTMENTDEPARTMENT
PICKER ANDPICKER AND
PACKERPACKER
COMPO INVENTORYCOMPO INVENTORY STAGINGSTAGING
INVENTORYINVENTORY
DISPATCH DEPARTMENTDISPATCH DEPARTMENT
DISPATCHDISPATCH STAGING INVENTORYSTAGING INVENTORY PACKEDPACKED EXTERNAL CUSTOMEREXTERNAL CUSTOMER
SAMPLES AT FIRM POSAMPLES AT FIRM PO
ORDERED.ORDERED.
DESPATCHDESPATCH
OFOF
SAMLPLESSAMLPLES
BY FIRMBY FIRM
RECEIPT ANDRECEIPT AND
INWARDING OFINWARDING OF
THE SAMPLESTHE SAMPLES
AT CHAKANAT CHAKAN
FACILITY.FACILITY.
DOCUMENTDOCUMENT
PREPARATIONPREPARATION
AND QUALITYAND QUALITY
CHECKINGCHECKING
RETURN TORETURN TO
FIRM IFFIRM IF
REJECTEDREJECTED
OROR
INWARDEDINWARDED
TO BINNING.TO BINNING.
FIFOFIFO
BINNINGBINNING
AT COMPOAT COMPO
STAGINGSTAGING
INVENTORYINVENTORY
DESPATCHDESPATCH
OF EOL WITHOF EOL WITH
PRESSUREPRESSURE
PARTSPARTS

58. Process/Activities:
Begins With:
Ends With:
Inputs:
Suppliers:
Outputs
:
Customers:
Constraints:
Planner &Buyer
clearing indent
for collection
Priorities, Time ,Transport Large Inventory at
Chakan
Measures of Effectiveness:
$$, support, outcomes,
leadership,
acknowledgement,
recognition, policy or
behavior change
Current methods was to call direct transport and
get the collection done
Planning Data, supporting
documentation, policies and
procedures, standards (filters for
information), priority communications
Plant Manufacturing
&Supplier
Delayed wrong Information, tangible
mechanism of information format, data
(who, what, when, where, why, how,
etc), Policies and Procedures
bypassed.
Chakan Warehouse
&Customer
IDENTIFIED GAPS

59. Measuring
Processes
 Review Process and Project measures
 Develop/Clarify measurement criteria
 Identify appropriate measures
 Gather measurement information
 Annotate the models and characteristics

60. Provide
Delivery
Service
Identify Appropriate Measurement Levels
Service
Customer
Close
Transactio
n
Customer
Order
Booking
Prepar
eBoiler
Schedule
Delivery
Deliver
Order
Take
Order
WHAT
HOW
HOW
Workflow
15-50%
10-15%
>100%
Days
Minutes
/Hours
Minutes
Minutes
/Seconds

61. Review KPIs and Project
Objectives
Key Performance
Indicator
 Customer Satisfaction
Project Objectives
 Eliminate non-value-added activities
 Reduce number of damages given by
50%
 Simplify the process
 Improve cross-functional
communication
 Reduce # of exceptions
 Improve the reliability of delivery-
 Improve on-time from 50% to 90%
 Increase customer satisfaction-reduce
the number of complaints by 50%

62. Develop/Clarify Measurement
Criteria
 Timeliness - understand your business cycles
 should recognized and represent variations in operations
 Validity - must be a valid measure of process performance
 orders filled and orders processed vs. pulls per hour
 Completeness - right level of measures for project objectives
 who needs information and how much do they need
 Inclusiveness - all appropriate costs not just a few
 should include all related costs, including such things as overhead, space, supplies,
etc.
 Cost Effectiveness - measuring is not FREE
 value of measurement vs. the cost of obtaining
 Comparability - before and after
 apples - to - apples
 Balanced - include measurements from all three categories
 Perspective - various stakeholders
 internal
 external

63. Aspects of Measurement
Only Measure Performance Improvement
Targets
Quality and Effectiveness
Measures:
 Appropriateness
 Customer Satisfaction
 Quality
 Defects
 Cost of Non Conformance
 Price
 Responsiveness
 Consistency
 Profitability
 Market Share
 Real Value-added to
 process cost
Efficiency Measures:
 Cost
 Cycle time
 Wait time
 Wastage
 Scrap
 Spoilage
Adaptability Measures:
 Product and service
variability
 Job satisfaction
 Ability to handle non
standard
customer requirements
 Time to profit
 Time to market
 More capable work force
 More flexible staff
 Equipment Capability
 Business Disruption
 Morale
Common denominators are often Time, Cost, and Customer Satisfaction
Process measures must be directly related to business performance
measures

64. Validating and Analyzing
Processes
 Run Workshops
 Observe the Process Flow
 Decompose and Prioritize Process Flows
 Identify Evaluation Criteria for Quick Wins
 Implement Quick Wins

65. WASTE IDENTIFIED IN FLOW CHART
Sales Order
Input
By Planner
Plant
Operations
Buyers
Decision
PR
Drawing
PO
Supplier
Vendor
Chincwad
Storage
Assembly
&Consolidation
Center
Chakan
Decision
By planner
Decision
By
Buyer
Output
Wait &
Delay
Transport
Wait &
Delay
INWARD
Operations
QC
Decision
RTV
STORE
BINNING
WRONG
DOCUMENT
GRN
Monthly
Plan
Dispatch
Preparation
Of SYSTEM
FG
COMP
INVENTORY
PHYSICAL
FG PICK
PACK
REWORK
DI
BY COMMERCIAL
DISPATCH
CUSTOME
R
END
MISSING
ITEMS
FOC
CUSTOMER
OUT
PUT
INVOICED
Open yard
Wait &
Delay
For Back order
STAGING
INVENTORY

66. What all Processes we improved and Waste we
removed under Kaizen Event
IMPROVE COLLECTION OF MATERIAL
COST REDUCTION OF TRANSPORT
IMPROVING INWARD PROCESSES
IMPROVING BINNING AND INVENTORY MANAGEMENT
IMPROVING DISPATCHES SPEED
REDUCING COST OF DEMURRAGES
USAGE WITH COST REDUCTION FOR MATERIAL HANDLING EQUIPMENT
REDUCING USAGE OF WOOD PACKING
ALTERNATE WAY TO WOOD PACKING

67. IMPROVE COLLECTION OF MATERIAL FROM SUPPLIER
AND FACTORY END WITH COST REDUCTION OF
TRANSPORT
NON VALUE ADDED ACTIVITY
Movement in isolation by any buyer
without any planning .
No regard for correct dimension
transport Small items in big
transport
Supply for job work without any
planning of sharing. No Sharing
Bill discrepancy with regard to rate
distance and demurrages .
No accountability of damaged or
stolen items
No correct information on status of
transport
POSSIBLE SOLUTION
Possibility of clubbing
Consolidation of loads for different
kind of movements.
Type of vehicles suits to load
pattern
Having visibility to club loads.
Scheduling of standard items / parts
inbound movement / on minimum
and maximum stock quantity
assessment ( to avoid pile of /
excess )
1

68. How the Transport Coordination for
Inward material process was streamlined
Outsource Transport placing to MLL with Themrax Operation Head to supervise
Set a process of coordination with Stores and Material team from Chincwad/ Savli and Chakan with
details on when transport is needed.
Buyer and Planner only to Place demand as per indent details filled and start a MIS.
MLL Transport Correct dimension transport to be placed as per RC. Saving will occur
Over dimension rates transport to be negotiated with RC vendors otherwise place lowest bidder
from open market under your name. That is where real savings for Thermax will occur
Do savings on sharing for transport for picking of material from same region .
Ensure prevention of damage in transportation and correct quantity and quality is picked from
supplier end that is required within need by date/ current invoicing.
Scrutinize and audit bills with correct details for billing
Ensure correct timing's of placing of transport and its move on record to reduce demurrages. Bring
out accountability of anybody who holds transport .
Visit all suppliers if need be and have comfort equation with them to support their delivery but insist
that will be correct quality material.

69. Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14
Revenue 2434211 2650687 3841751 1430998 2712706 1906916
Saving in Amount 144339 182338 232215 68998 135640 103490
Saving in % 5.93 6.88 6.04 4.82 5.00 5.43
Transport Details

70. PROJECT OBJECTIVESPROJECT OBJECTIVES
PROJECT DESCRIPTIONPROJECT DESCRIPTION: STUDY OF CYCLE TIME IN THE MATERIAL INWARD TO OUTWARD: STUDY OF CYCLE TIME IN THE MATERIAL INWARD TO OUTWARD ACTIVITIES FOR THEACTIVITIES FOR THE
ITEMS PROCURED BY MATERIAL GROUPITEMS PROCURED BY MATERIAL GROUP
CRITICAL FACTORSCRITICAL FACTORS 1. DELAY IN RECEIPT .1. DELAY IN RECEIPT .
2. DELAY IN QUALITY CLEARANCE2. DELAY IN QUALITY CLEARANCE
3. TIME TAKEN FOR BINNING3. TIME TAKEN FOR BINNING
3. TIME TO DISPATCH3. TIME TO DISPATCH
DATA SOURCESDATA SOURCES ACTUAL TIME TAKEN FOR STORES AVAILABLE AT ESTABLISHMENT TO BE IACTUAL TIME TAKEN FOR STORES AVAILABLE AT ESTABLISHMENT TO BE INWARDEDNWARDED
AND INVENTORY MANAGEMENTAND INVENTORY MANAGEMENT
CURRENT STATUS OFCURRENT STATUS OF
THE PROJECTTHE PROJECT
..
IMPROVEMENT GOAL OF THEIMPROVEMENT GOAL OF THE
PROJECTPROJECT
TO STUDY THE CYCLE TIME OF VARIOUS QA ACTIVITIES FOR MATERIAL MOTO STUDY THE CYCLE TIME OF VARIOUS QA ACTIVITIES FOR MATERIAL MOVEMENTVEMENT
RESULTING IN DELAY .RESULTING IN DELAY .
StageStatusSrl
No
WasteInventory More than 180
days
5
Staging Inventory30 to 360 days4
Compo stock30 to 360 days3
1 60 to 90 days (a)Receipt of Challan
(b)Scrutiny of Challan
To © Taking on Binning
2 Accuracy less than 50 % Binning as per System
IMPROVING INWARD PROCESSES IN CHAKAN FACILITIES
GRN+ BINNING+ INVENTORY MANAGEMENT
2

71. IMPROVING CURRENT STATE IN GRN
3 Days for Binning
30 Days for Quality Clearance or return of items
RTV Items returned back in time
Non GRN cases were closed with Buyers
Finance Person placed near GATE to prevent incomplete Document from Supplier Inventory to be in
warded. All cases to be solved by Buyer and Supplier outside the gate
GRN

72. Apr-
13.
May-
13.
Jun-
13.
July-
13.
Aug-
13.
Sep-
13
Oct-
13
Nov-
13
Dec-
13
Jan-
14
Feb-
14
Mar-
14
Apr-14 May-14
Inward VTAT not to cross 5 hours Zero 91.5 85.55 91.33 91.50 89.55 98.50 98.55 97.99 99.33 98.94 98.48 99.31 100.00 99.55

73. IMPROVING BINNING
Poor Binning and Accuracy due to no
ready status of inventory available
Can’t find stock for customer
orders
Excessive order pick times leads
to avoiding FIFO concept. There is
no effort of old inventory to move
out first.
BINNING PROBLEM
Binning Card under implementation
FIFO Colour Code
Auditing for 100 %
Accuracy
BINNING IMPROVED

74. Control by Binning card and
FIFO

75. PROBLEM AREA IN
INVENTORY
Aging pressure parts Inventory increasing every Month
There was no concept of reallocation of non usable pressure parts to
new orders
Big Gap between Confirmed Dispatched Invoiced and Planned Pressure
parts units .
Component Inventory Increasing every day due to unpicked units of
cancelled orders
Staging Inventory of non Invoiced Units increasing every day and not
going back to Component Inventory
INVENTORY
STATE

76. Apr-
13.
May-13.
Jun-
13.
July-
13.
Aug-
13.
Sep-
13
Oct-
13
Nov-13
Dec-
13
Jan-
14
Feb-
14
Mar-14
Apr-
14
May-14
Cyclic Count
inventory
93.50 94.00 91.50 95.00 93.00 99.4 98.5 100 100 99.40 98.00 98.50 99.00 99.50
EOL
INVENTORY ACCURACY WITH SYSTEM

77. EOL
ABC & FSN ANALYSIS

78. PARETO CHART
ANALYSIS
Count
Percent
Class
Count
76.6 92.2 100.0
41032263 8382602 4181277
Percent 76.6 15.6 7.8
Cum %
CBA
60000000
50000000
40000000
30000000
20000000
10000000
0
100
80
60
40
20
0
Pareto Chart of Comp-Project inventory
Count
Percent
Class
Count
75.0 93.3 100.0
137549342 33504203 12348903
Percent 75.0 18.3 6.7
Cum %
CBA
200000000
150000000
100000000
50000000
0
100
80
60
40
20
0
Pareto Chart of Class wise Comp-Product

79. TREND ANALYSIS
CombineclosingInventory
Year
Year
Month
Month
20132012
OctJulAprJanOctJulApr
20132012
OctJulAprJanOctJulApr
800000000
700000000
600000000
500000000
400000000
Accuracy Measures
MAPE 7.06272E+00
MAD 3.27980E+07
MSD 1.37597E+15
Variable
Forecasts
Actual
Fits
Trend Analysis Plot for Combine closing Inventory
Growth Curve Model
Yt = 406609294 * (1.03500**t)
Trend Analysis includes the Combined Inventory value of Comp and STG

80. IDENTIFYING UNUSED PRESSURE PARTS
No.ofparts
Percent
Days
Count
25.2 10.8 10.8
Cum % 27.0 53.2 78.4 89.2 100.0
30 29 28 12 12
Percent 27.0 26.1
91-12061-90121 and Above31-600-30
120
100
80
60
40
20
0
100
80
60
40
20
0
Pareto Chart for Inventory Ageing of Domestic Pressure Part
No.ofparts
Percent
Days
Count
14.3 9.5 0.0
Cum % 38.1 76.2 90.5 100.0 100.0
16 16 6 4 0
Percent 38.1 38.1
Other61-9091-12031-600-30
40
30
20
10
0
100
80
60
40
20
0
Pareto Chart for Inventory Ageing of Dealer Pressure Part

81. No.ofparts
Percent
Days
Count
14.3 7.1 0.0
Cum % 42.9 78.6 92.9 100.0 100.0
6 5 2 1 0
Percent 42.9 35.7
Other61-9031-6091-1200-30
14
12
10
8
6
4
2
0
100
80
60
40
20
0
Pareto Chart for Inventory Ageing of Export Pressure Part

82. HOW WE ARE MAKING INVENTORY LEAN
EOL more than 180 days returned back
from Staging to Component Inventory
QC verified the useable inventory
Old non useable inventory scrapped to
earn some value
Component Inventory increased in Min Max
and ultimately in warded less
Verification of reenlistment before PO was
raised
More than 30 days inventory not being
used held at gate to maintain pressure
Pressure Parts to be invoiced according to planned
customer DI which was fixed
All Pressure Parts identified to be invoiced
Left over will be reallocated to new order
Canceled to be shifted back to Compo
Option to sell it at reduced prices also
How EOL was reducedHow Pressure Part was reduced

83. 6
IMPROVING OTP
IMPROVING SYSTEM FG TO DISPATCH PHYSICAL FG
AREAs OF IMPROVEMENT
PP movements from Plant to Chakan were late and backlog end of the month
Inward Transport /documentation/ System and Physucal matching issues wrt ISO movements
System FG matching PP and EOL needed to spread out through out the month
Physical FG not completed not getting completed and matching with System FG
Invoices integeration lacking with actual status of Phycial FG causing delay of Outward dispatches
Monthly Planned System and Physical FG not matching with Customer DI and any Customer DI
are not ready for FG due to customer requirments
3

84. IMPROVING DISPATCHES SPEED BY IMPOVING
PHYSICAL FG WITH SYSTEM FG
PAST
DISPATCH PROBLEMS
 Picking productivity poor
which are driving additional
labor and Partially picked
orders leading to
demurrages costs .
 Regularly needing overtime
to meet customer orders
 Stock loss / FG not
completed before Contaner
arrived was an everyday
occurrence
CURRENT DISPATCH
Packing Plan now being
implemented the moment we get
monthly invoicing plan
Picking speed increased
By accuracy level of binning with
system
FIFO now being followed up
FG matching with dispatch plan as
disconnect with planner and buyer

85. Apr-
13.
May-
13.
Jun-
13.
July-
13.
Aug-
13.
Sep-
13
Oct-
13
Nov-
13
Dec-
13
Jan-14
Feb-
14
Mar-14
Apr-
14
May-
14
System FG V/s
Physical FG
81.00 75.00 71.44 76.00 75.50 92.5 95.55 96.50 94.44 100.00 100.00 100.00 100.00 100.00

86. INTEGRATED OPERATIONS IN CHAKAN
PPC=D MODEL IN CHAKAN
The SCM logistical network consists
of facilities and distribution options
that perform the functions of
procurement of materials,
transformation of these materials into
intermediate and finished products,
and the distribution of these finished
products to customers
The concept of PPC =D is about
managing coordinated information
and material flows, plant operations,
and logistics from shop floor to
Customer.
The fundamental premise of this
philosophy is;
 Synchronization among multiple
autonomous business entities
represented in it.
 Improved coordination within
and between various supply-
chain members.
PPC=D coordinates and integrates all of
these activities into a seamless process.
It embraces and links all of the partners
in the chain.
 Increased coordination can lead to
reduction in lead times and costs,
alignment of interdependent decision-
making processes, and improvement in
the overall performance of each member
as well as the supply chain.
 It provides flexibility and agility in
responding to consumer demand shifts
without cost overlays in resource
utilization.
 PPC=D encompasses the management of
all these (process) activities associated
with moving goods from raw materials
through to the end user
 SLA s defined between Chakan team and
PPC for a faster and efficient transparent
delivery
.
4

87. PP Readiness by Plant to Invoice and Exim documentation & Early
Movement from Chincwad to Chakan
System FG being generated by Planner by doing back end integration
with ISO and EOL & with in 2 days Physical Packing confirmed .
Concurrent Packing Plan also implemented the moment monthly invoicing
plan by planning number of boxes per units per day in advance
Coordination of Shipping team between Planner to Commercial ie
between Planned FG to DI FG to identify loose ends of both start and end
Inward Transport coordinated with EOL and ISO for timely System FG
Outward Dispatches and transport within Thermax scope to In transit ware
house visibility
SYSTEM FG (ISO + EOL ) + PHYSICAL FG (ISO + EOL )= INVOICE & DISPATCH
INTEGRATED OPERATIONS IN CHAKAN

88. BENEFITS OF INTEGERATION
PROCESS BEING REDEFINED TO MAKE IT FASTER
AND LEANER
D day : Dispatch to be done by Shipping team
D-1 day : Invoicing and Commercial transport
Completed by Commercial team
D- 2 : Physical FG completed by Packing Pick and
Packing process by Floor Team
D– 4: System FG completed by back end integration
of ISO and EOL by Planner team
D- 5 Transport team to ensure logistic movements
of ISO and EOL in warded and GRN Made by Store
team
D-5 : ISO physically has to be in warded by ISO
TEAM by ISO Chincwad team
D-7 UNIT confirmed for dispatched a week before of
Monthly plan
D-30 Planning for the month after confirmation by
region >>>.It gives no of boxes fans/dimensions/
cases/ control panel /Qtr plan probability
Results Achieved
Advance monitoring and daily
monitoring of status change of a
unit in terms of System to Physical
to Commercial invoiced and
Dispatch units .
Capability to enhance output from
Chakan 1 cr per day
Complete tracking of GRN , system
FG to Physical FG to Packing Speed
and Dispatches are being generated
Before : ISO and System FG with
Physical FG slow till 3rd week
After : ISO Shifted till Second week :
System FG to Physical FG speeded
up

89. SIX DAYS FOR EXPORT
ORDER PLACED ON CONTAINER FIRM BASED ON DATE GIVEN
BY PLANNING TEAM TO DISPATCH
CLOCK STARTS POST RECEIPT OF EMAIL OF CONFIRMATION OF
MOVEMENT OF CONTAINERON TO CHAKAN ON FIRST DAY
PACKING FG TIME AND LOADING CHECK TIME INCLUDED IN 24
HOURS OF SECOND DAY
MOVE TO PORT ON THIRD DAY
ACCELARATED LOADING WITHIN NEXT THREE DAYS
FOCUS ON TIMELY AND SAFE LOADING IN EXPORTS.
REDUCING DEMURRAGES
5

90. TECHNICAL DETAILS
AVERAGE TIME FOR VARIOUS CRITICAL ACTIVITIES AT PRESENT
02COMPLETION OF INSPECTION FG AND LOADING2.
09PREPARATION OF SHIPPING LOADING AT PORT4.
6TOTAL
GREY AREATAKE OFF IN SHIP FOR EXPORTS6.
03LOADING5.
03MOVEMENT TO PORT3.
01DETAILING OF CONTAINER1.
DURATION
(DAYS)
ACTIVITYSL
NO

91. CAUSE AND EFFECT DIAGRAM
DEFINE
HEAVY
DEMURRAGES
FG
PREPARATION
DELAYS
DELAY
IN
FORW
ARDING
CONTAINER
TO
PORT
DELAY
IN
RECEIPT
OF
EOL
AND
PRESSURE
PARTS
FROM
FIRM
DELAY
IN
REPO
RT
FRO
M
EXCISE
DEPARTM
ENT
INCORRECT
PACKING
NOTE
AND
IN
CO
M
PLETE
PACKING
INVO
ICING
DELAYS
DETAILING
OF
GOOD
AND
NON
DAM
AG
ED
CONTAINER
NOT
IN
TIM
E
REDUCING DEMURRAGES

92. MEASURE STAGE: PARETO ANALYSIS
Team has created the Pareto chart of issue for not having on time shipments
and will eliminate those causes by root cause analysis
Occurences
Percent
Potential Reasons For Detension
Count 2 2 3
Percent 28.624.512.211.2 5.1 5.1
28
3.1 3.1 2.0 2.0 3.1
Cum % 28.653.165.376.5
24
81.686.789.892.994.996.9100.0
12 11 5 5 3 3
O
ther
O
ne
Xps
Excise
PANEL
BO
X
, PR.SW
ITCH
BO
LC
am
mended
by
Project Manager
ID,FD,FT
BO
Container send
back
Em
pty
Com
m
ercial
Material not picked
MATERIAL
BACK
ORDER
Saturday/Sunday
Schedule
W
AITING
FO
R
INVOICE
100
80
60
40
20
0
100
80
60
40
20
0
Pareto Chart for Reasons of Detection of Export VCs

93. According to Pareto chart 55% of the
causes are related to lead times, material
shortages, and part failures, bill of material
issues, configuration, and engineering
issues, so team has decided to improve
these problems by understanding current
process flows and developing improved
process flows to address the causes of
delays.

94. CAUSES OF DEMURRAGES
Planner not giving any saving or reserve day for un foreseen
delay and playing too tight
Planned date never met due to Back order items not completed
by Buyer
Packing or shifting to Chakan not in time by From Plant
Packing delay in Chakan
Incomplete and delayed or damaged container
Invoicing not on same day as person in Exim on leave or busy
Container on Friday leads to automatic delay to move on
Monday. Excise person not available

95. Team started analyze phase by gathering the data the causes on
delayed shipments. Team has collected the causes from Value stream
leaders and operations manager for the delayed shipments
 Exim and Excise documents along with not invoiced in time.
 Major reasons disconnect between Exim Officials and Planning
/Buyer team to make a Unit FG in time.
 Anticipation of arrival of a part from supplier became an habit
w/o any regard that container will keep waiting
 Sales /DI /Engineering / IT System Approval not in Time.
 Rework
IMPROVING
STAGE

96. Apr-
13.
May-
13.
Jun-
13.
July-
13.
Aug-
13.
Sep-
13
Oct-
13
Nov-
13
Dec-
13
Jan-
14
Feb-
14
Mar-
14
Demurrages(in
Lakhs)
1.02 6.77 4.76 4.86 1.49 8.51 1.74 21.81 7.69 1.00 0.90 2.13

97. OPEX LEAN SIX SIGMA PROJECT NO 6
COST REDUCTION ON MATERIAL HANDLING EQUIPMENT
Area of Improvement
 Crane Consumption was very high ranging from 9 to 11
 No discipline or monitoring mechanism how many cranes are
required for a day's work
 Every individual stake holder wanted a crane for himself
 Cranes were most of the time idle after initial work for which
they were tasked
SIGMA DEFECT > 7 CRANE ANY DAY
6

98. ACTION IMPLEMENTED
Proper demand analysis of crane is done for work requirement for the day.
There are some fixed work every day for which crane is surely required, for
such work crane utilization with sharing concept started.
There was also single authority earmarked to demand crane with clear upper
control limits for him, Beyond that it was to be justified.
Also management of sustaining monthly work like 5 S or improving area
reduced crane demand every day for unnecessary shifting of material as lay
out made it easier for picking packing and no cross movement leading to
requirement of less number of cranes.
Apart from that correct tonnage of crane was also monitored as that reduced
cost .
Security was alerted to identify any cranes not being used and taken out from
days work to reduce cost from 8 hour shift to half day shift or sharing.
Crane operators lunch time was matched with own team so that common rest
timing are observed.

99. REDUCING CRANE HIRING CHARGES
Crane not more than 7 is
being practiced now
Crane usage was monitored for
how many times it was not used
for individual stake holders
Concept of sharing cranes was
made to be realized
Crane Consumption was
very high ranging from 9
to 11
Every individual stake
holder wanted a crane for
himself
I
IMPLEMENTEDFUTURE
SITUATION
CURRENT/PAST STATE

100. SIGMA DEFECT > 7 CRANE ANY DAY
Oct
8.
4
5
1
6
1
2
9
0
3
Sept
9.
36
66
66
66
7Aug 9
A
v
g
ProcessData
Frequency
1815129630
LSL TargetUB
ProcessData
Sample N 31
StDev(Overall) 4.11664
LSL 0
Target 7
UB 8
Sample Mean 9
Overall Capability
Cpm 0.51
Pp *
PPL 0.73
PPU *
Ppk 0.73
Observed Performance
PPM < LSL 0.00
PPM > UB 838709.68
PPM Total 838709.68
Exp. OverallPerformance
PPM < LSL 14398.69
PPM > UB *
PPM Total 14398.69
ProcessCapabilityofCRANES USEDAUGUST
1612840
LSL TargetUB
Process Data
Sample N 30
StDev(Overall) 4.17549
LSL 0
Target 7
UB 8
Sample Mean 9.36667
Overall Capability
Cpm 0.49
Pp *
PPL 0.75
PPU *
Ppk 0.75
Observed Performance
PPM < LSL 0.00
PPM > UB 833333.33
PPM Total 833333.33
Exp. OverallPerformance
PPM < LSL 12440.42
PPM > UB *
PPM Total 12440.42
ProcessCapability ofCRANES USEDSEPT
15129630
LSL TargetUB
ProcessData
Sample N 31
StDev(Overall) 3.44264
LSL 0
Target 7
UB 8
Sample Mean 8.45161
OverallCapability
Cpm 0.63
Pp *
PPL 0.82
PPU *
Ppk 0.82
ObservedPerformance
PPM < LSL 0.00
PPM > UB 838709.68
PPM Total 838709.68
Exp. OverallPerformance
PPM < LSL 7044.62
PPM > UB *
PPM Total 7044.62
ProcessCapabilityofCRANESUSEDOCTOBER
2012 AVERAGE
9
SIGMA VALUE 0.51SIGMA VALUE 0.53SIGMA VALUE 0.51
2013AVERAGE
9.366
2013 AVERAGE
8.45

101. BREAK THROUGH IMPROVEMENT
CRANE AVERAGE
USED 7 IN 2014
3SUM
05
05
02
02
07
07
07
19
19
18
01
02
05
07
DEFEC
TCRANES USED
121086420
LSL Target UB
Process Data
Sample N 14
StDev(O v erall) 2.92751
LSL 0
Target 7
UB 8
Sample Mean 5.35714
O verall C apability
C pm 0.70
Pp *
PPL 0.61
PPU *
Ppk 0.61
O bserved Performance
PPM < LSL 0.00
PPM > UB 142857.14
PPM Total 142857.14
Exp. O v erall Performance
PPM < LSL 33630.06
PPM > UB *
PPM Total 33630.06
Process Capability of CRANES USED NOV

102. Measurable Benefits /
Results :
Correct Tonnage and
required number
/movement of Cranes
/material handling
equipment started with
clear accountability of any
idle crane.
Financially the Heating
Division benefited as
follows against business
turn over volume. every
month there was saving of
apprx 3 to 6 lacs if
compared with APr 2012
crane cost .
121086420
LSL Target UB
Process Data
Sample N 14
StDev (O v erall) 2.92751
LSL 0
Target 7
U B 8
Sample Mean 5.35714
O v erall C apability
C pm 0.70
Pp *
PPL 0.61
PPU *
Ppk 0.61
O bserv ed Performance
PPM < LSL 0.00
PPM > U B 142857.14
PPM Total 142857.14
Exp. O v erall Performance
PPM < LSL 33630.06
PPM > UB *
PPM Total 33630.06
Process Capability of CRANES USED NOV
Process Data
Frequency
1815129630
LSL TargetUB
Process Data
Sample N 31
StDev (O v erall) 4.11664
LSL 0
Target 7
UB 8
Sample Mean 9
O v erall C apability
Cpm 0.51
Pp *
PPL 0.73
PPU *
Ppk 0.73
O bserv ed Performance
PPM < LSL 0.00
PPM > UB 838709.68
PPM Total 838709.68
Exp. O v erall Performance
PPM < LSL 14398.69
PPM > UB *
PPM Total 14398.69
Process Capability of CRANES USED AUGUST
BEFORE
AFTER

103. Apr-
13.
May-
13.
Jun-
13.
July-
13.
Aug-
13.
Sep-
13
Oct-
13
Nov-
13
Dec-
13
Jan-
14
Feb-
14
Mar-
14
Apr-
14
May-
14
crane Amount (in
Rs)
10.72 7.57 9.28 9.06 8.01 7.37 6.66 6.87 8.87 6.77 6.86 10.46 4.80 4.77

104. Crane Utilization Vs Business
21
32
27 28
58
20
43
19
30
62
17
22
54
20
32
57
15 14
60
14
20
15
12.41
12.35
13.5
12.76
11.18
11.93
11.47
7.03 9.46
9.34
8.82
13.69
10.72
7.52 9.28
9.06
7.65
6.54
6.66
6.87 8.87
6.80
0
10
20
30
40
50
60
70Apr12
May12
Jun12
Jul12Aug12
Sep12
Oct12
Nov12
Dec12
Jan13
Feb13
Mar13
Apr13
May13
Jun13
Jul13Aug13
Sep13
Oct13
Nov13
Dec13
Jan-14
Month
BusinessinCrores Total Business Value in INR - Crores Crane Amt in Lacs ( Before Tax)

105. OPEX LEAN SIX SIGMA PROJECT NO 9
COST REDUCTION ON MATERIAL PACKING
PROJECT TEAM
- MLL TEAM LED BY DEEPAK KAKDE AND
PRUTHVIRAJ TIWARI ,VIJAY BANGER , SACHIN
-THERMAX TEAM MANOJ SARAF, SANDEEP
GAIKWAD, CHEATN BHOSLE, VIVEK
YEDE,DARSHAN
Area of Improvement
Cost of Wood packing is very high.
Details
ACTION IMPLEMENTED
Ways and means being identified to
reduce wood usage in packing.
Recycling of wood cases
First Case : ID FAN PACKING
Wood CFT required for
existing method is 7.7 CFT and
same
Fan can be packed with 2.3
CFT. We can save 5 .4 CFT per
fan. We pack average 45 fan per
month & we pay Rs. 255/CFT for
wood
So we can save Rs 1377 per fan
or Rs.61965 pm. i.e. Rs. 7.4 lacs
p.a. and also help to protect the
environment.
TRIALS ON OTHER CASES

106. BENEFITS
Designed New base with required support in less wooden material.
CFT saved is 5.74 per fan.
Average cost saved Rs 61965/-per month
Easy to handle and access.

107. OPEX LEAN SIGMA PROJECT NO 10
REPLACING WOOD
WITH ALTERNATIVE MATERIAL AND ENVIROMENT FRIENDLY
PROJECT TEAM LEADER : MANOJ SARAF
AND PRUTHVIRAJ TIWARI
- MLL TEAM : DEEPAK KAKDE AND
VIJAY BANGER , SACHIN GANESH SHELAR ,
NANDU SHINDE , JITENDRA BOHITE ,
-THERMAX TEAM MANOJ SARAF, SANDEEP
GAIKWAD, CHEATN BHOSLE, VIVEK
YEDE,DARSHAN
AREA OF IMPROVEMENT
Conservation of Resources [ Wood ] by
reducing usage of wood and use alternative
source of material
Advantages of using
Corrugated box
Corrugated Cardboard Boxes are
completely recyclable in nature that makes
them eco-friendly.
Corrugated Boxes are light weight and thus
are very convenient to handle while loading
and unloading.
 Corrugated Box packing is free from dust.
Fumigation cost save.
Wood save Approx. = 6446.4 CFT/Year = 322
Trees
Corrugated packing save approx. Rs =
4,67,630.40/Year
Life of Packing is greater than wood
material
Reusable
ACTION IMPLEMENTED
Ways and means being identified to remove wood
usage and use alternative material in packing.
Transportability and Safety against breakage also being
considered when using alternative material
First Case : ID FAN PACKING
For packing of FD Fan Assly , Acc Shipping has
introduced the Corrugated Box instead of
Wooden box.

108. BENEFITS OF USING CORRUGATED MATERIAL
15.91
13.19
15.84
12.46
7.98
Wood/C
FT
Saving / Box
527.98
2
Persons for
10 Min.
4
Persons for
30 Min.
7526.628054.6012.2928.20105 x 60 x 455
906.82
2
Persons for
10 Min.
4
Persons for
30 Min.
6313.787220.6012.0125.2105 x 60 x 304
1643.68
2
Persons for
10 Min.
3
Persons for
30 Min.
5133.826777.507.9117.5180 x 60 x 453
1021.88
2
Persons for
10 Min.
3
Persons for
30 Min.
39604982.785.0517.5165 x 51 x 432
796.44
2
Persons for
10 Min.
2
Persons for
30 Min.
2379.483175.923.1611.1445 x 40 x 351
Cost in RsRequired for
Corrugated
Box
Required for
Crate
Required for
Corrugated
Box
Required
for Crate
Required for
Corrugated
Box
Required
for Crate
Manpower Required / BoxCost / BoxWood / Box
Item Size
Sr No.

109. BEFORE AFTER
If Fan packed in Wooden Crate
Crate Size in Inches = 80 x 60 x 45
= Cft X Rate
= 23.75 x 278
= 6602.50
a ] Wodden Crate = 6602.50
b ] Nail [ Approx ] = 50.00
c ] Top Cover [ 86 x 65 ] = 125.00
Total Cost of Wooden Crate = a+b+c
= 6602.50+50.00+125.00
A] Price of Wooden Crate = 6777.50
If Fan packed in Corrugated Box
Wooden Base CFT = Size in Cms
= 85 x 60 x 1.5
Wooden Base CFT = 7.91
B ] Cost of Wooden Base = 7.91 x 278
= 1998.82
C ] Corrguated Box (1 Set ) = 1820.00
D ] Lashing Belt 32mm (19 mtr) x 35 =
665.00
E ] Buckles 25 (3 nos) x 17 = 51.00
F ] HDPE cover ( 86 x 65 x 50 ) = 599.00
Total Price of Corrugated Box = B+C+D+E+F
= 1998.82+1820.00+665.00+51.00+599.00
Price of Corrugated Box = 5133.82
Saving per Box = A-B = 6777.50 – 5133.82 = 1643.68
Wood Saving per Case =Crate –Base = 23.75 – 7.91 = 15.84 CFT

110. Overcoming Resistance to
Change
Set goals, measure, provide
coaching and feedback,
reward and recognize
Communicate the
what, why, how,
when, who,...
Educate and
train in new skills
Not
Willing
Not Able
Not Aware

111. Processes have improved
stress free working and
reduced pain area
Regular work out meeting with employees have resolved
many of their issues also
Making a social pact or work out meeting with all employees
for maintaining continuity of purpose
They all want timely salaries and good food
Rationalized working Hours without rework

112. SUMMING UP OF RESULTS

113. VALUE STREAMING OF PROCESSES
Specify and simplify
every flow
In SOP / Method
guidelines updated and
improved
No documented SOP’s or Methods
defined
3
Supervisors and Junior
Executives empowered
and decision making
decentralized to solve
solutions on the spot
No visible floor controls for Input
and output product flows .
2
We Structured every
activity from GRN to
Binning to Dispatch
to identify bottlenecks
and non value added
steps
Culture of Value
Added Services
to be established
Warehouse process flows from
GRN / Binning/ Dispatch were not
well defined and not followed
1
IMPLEMENTEDFUTURE STATECURRENT /PAST STATESRL
NO

114. VALUE STREAMING OF PROCESSES
Clearly connected every
internal department
customer/supplier
Culture of
Value
Added
Services to
be
establishe
d
No Defined PMI/Role/ Ownership in
routine functioning
4
KPI being monitored
Coordination between Thermax
and TLIPL sorted out
Poor people productivity .
•No KPi’s / metrics
• Lack of coordination between
stakeholders
5
Streamlined several routine
processes
Problem-solving tasks in routine
administration
6
IMPLEMENTEDFUTURE
STATE
CURRENT /PAST STATESRL
NO
Points implemented/under
consideration
Work Out with Employees for
feedback
7

115. ACHIEVEMENTS OF VALUE STREAMING
Forced
problem to
surface and
made weak
links
Each department is somebody
customer. Listen to VOC , each
department to create
interdependency
Check list and flow chart
of processes and sub
processes are integrating
and connected with each
other to add value
Connected Process
flow
Less accidents
and clutter up
of people
/crane/material
Positioning guards and
executives to move and see in
forward and one way only with
regulated traffic
Ensuring motion of
transport and material is
always in forward and one
way to avoid cluttering up
Transportation
streamlined
Less delays in
transport and
material
movement
Forcing internal departments to
think of maintaining the
connected process forward or
the process will shut down with
accountability
Waiting period at each
stage of
Material movement from
inward to outward reduced
Waiting Time on hand
reduced
Less rework
and improving
operational
availability
Encouraged concept of waste
walk many times a day among
executives
Identified basic work step
amd recorded time for
each step
To add value to each step
Reducing wasteful
activity
SAVINGS
TACTICS
PEOPLEPROCESSESAchievement

116. ACHIEVEMENTS OF VALUE STREAMING
Less rework
In dispatches
Building a culture among people
That stops to fix a problem
Every work checked
for defect free
Poka Yoke concept >
Mistake proofing and
error proofing.
Quality inspection in
every job
Value added
service is
provided.
Each stage of customer is aware of
next stage customer requirements
We conducted a tour
of processes in
reverse from external
customer to dispatch
to inventory to receipt
to material and plant .
Identified the internal
customer
requirements to be
met in reverse order.
Awareness of
customer
requirement
Performance
improved led to
automatic savings
Established clearly defined
expectations and consistency for
good repeated work performance
Standardized KPI
and work charts
Standardized
processes
Improving
operational
availability of
Packed FG units
Defined agreement pertaining to
volume of units targets to supplied
between receipt/ Inventory and
Dispatch
Creating Pull concept
between separated
operations
Pull System
SAVINGSPEOPLEPROCESSESACHIVEMENTS