project report: improvement of oe customer delivery performance in liwaks

SUMMER INTERNSHIP PROJECT REPORT

“Improvement of OE Customer Delivery

Performance in LIWAKS”

By

Siddhesh Bandekar

Under the Guidance of

Punam GujrathiManager

BOSCH Limited, Nashik

&

Yogeet Sharma Senior Officer


Indian Institute of Planning and Management, Mumbai2010-11

1

To whom so ever it may concern

This is to certify that Mr. Siddhesh Bandekar, student of Indian Institute of Planning

and Management, Mumbai has successfully completed his Summer Internship Project under

our supervision. The title of the project is “Improvement of OE Customer Delivery

Performance in LIWAKS”.

The tenure of his project was from 13th April, 2010 to 27th May, 2010.

His performance and conduct has been satisfactory and up to our expectations.

…………………

Project Guide

Punam Gujrathi

Manager


…………………

Project Guide

Yogeet Sharma

Senior Officer


2

Acknowledgements

I would like to take this opportunity to express my gratitude to all those who have

guided and supported me in completing this project.

I would like to thank my project guide Mr. Punam Gujrathi for giving me the

opportunity to work with him and his team at NaP/CLP-1 and for his valuable advices. Also

special thanks to Mr. Dalbir Sengar, Mr. Yogeet Sharma and Mr. Tushar Kokude for guiding

me and for sharing their rich experience and knowledge with me. Without their guidance

this project would not have been possible.

I would also like to thank Mr. Digambar Shegaokar, Mr. Amol Ahire, Mr. Parag

Upkare and Mr. Abishek Pamecha for their support and cooperation.

Sincerely,

Siddhesh Bandekar

3

Table of contents

Sr. No. Topic Page no.

1 Bosch Group 5

2 Bosch Ideologies 16

3 Robert Bosch India Limited 20

4 Bosch NaP 27

5 Bosch NaP Supply Chain 32

6 Introduction to CLP 40

7 Functioning of software 43

8 Customer Delivery Performance Improvement 51

9 Recommendations and Suggestions 64

10 Glossary 66

4

Bosch Group

5

Bosch Group

The Bosch Group is a leading global supplier of technology and services. In the

areas of automotive and industrial technology, consumer goods, and building technology,

some 275,000 associates generated sales of 38.2 billion euros in fiscal 2009. The Bosch

Group comprises Robert Bosch GmbH and its more than 300 subsidiaries and regional

companies in over 60 countries. If its sales and service partners are included, then Bosch is

represented in roughly 150 countries. This worldwide development, manufacturing, and

sales network is the foundation for growth. Each year, Bosch spends more than 3.5 billion

Euros for research and development, and applies for some 3,800 patents worldwide. With

all its products and services, Bosch enhances the quality of life by providing solutions

which are both innovative and beneficial. The company was set up in Stuttgart in 1886 by

Robert Bosch (1861–1942) as “Workshop for Precision Mechanics and Electrical

Engineering.”

Ownership Structure of Bosch:

The special ownership structure of Robert Bosch GmbH guarantees the entrepreneurial

freedom of the Bosch Group, making it possible for the company to plan over the long

term and to undertake significant up-front investments in the safeguarding of its future.

Ninety-two percent of the share capital of Robert Bosch GmbH is held by Robert Bosch

Stiftung GmbH, a charitable foundation. The majority of voting rights are held by Robert

Bosch Industrietreuhand KG, an industrial trust. The entrepreneurial ownership functions

are carried out by the trust. The remaining shares are held by the Bosch family and by

Robert Bosch GmbH.

6

Bosch Share of Equity

Robert Bosch GmbH , 1%

Bosch Family, 7%

Robert Bosch Stiftung

GmbH, 92%

Robert Bosch Stiftung GmbH Robert Bosch GmbH Bosch Family

Bosch Voting Rights

Bosch family , 7%

Robert Bosch Industrietreuhand KG, 93%

Robert Bosch Industrietreuhand KG Bosch family

Share of

equity

Voting

Rights

Robert Bosch Stiftung GmbH 92%

No Voting

Rights

Robert Bosch GmbH 1%

No Voting

Rights

Bosch Family 7%

7% Voting

Rights

Robert Bosch Industrietreuhand KG -

93% Voting

Rights

Financial Information:

200

8

200

9

7

Sales Revenue

45,1

27

38,1

74

Associates

281,

717

260,

687

Located In Germany

114,

360

111,

710

Located Outside Germany

167,

357

158,

977

Capital Expenditure

3,27

6

1,89

2

Research and Development

Cost

3,88

9

3,60

3

Profit Before Tax 942

-

1,19

7

Profit after Tax 372

-

1,21

4

Structure of Bosch Group

8

Automotive TechnologySales: 21.7 billion EurosShare of total sales: 57%

Industrial Technology

Sales: 5.1 billion EurosShare of total sales: 13%

Automotive

Technology

Gasoline Systems

Diesel Systems

Chassis Systems Brakes

Chassis Systems

Control

Electrical Drives

Starter Motors and

Generators

Car Multimedia

Automotive Electronics

Automotive

Aftermarket

Steering Systems (50%

Bosch-owned)


Drive and Control

Technology

Packaging Technology

Solar Energy

Consumer Goods and

Building Technology

Consumer Goods and

Building Technology

Power Tools

Thermotechnology

Household Appliances

(50% Bosch-owned)

Security Systems

Distribution of sales for 2009

BOSCH GroupSales: 38.2 billion Euros

Associates on Jan. 1 2010: 270,687

Consumer Goods & Building TechnologySales: 11.3 billion Euros

Share of total sales: 30%%

9

Automotive Technology


Consumer Goods and Building Technology

BOSCH Total Revenue, Profit After Tax

-10000

0

10000

20000

30000

40000

50000

Year

R s.

Mi

lli o n

Total Revenue

Profit After Tax

Total Revenue 34029 34997 36357 38954 41461 43684 46320 45127 38174

Profit After Tax 650 650 1100 1870 2450 2170 2850 372 -1214

2001 2002 2003 2004 2005 2006 2007 2008 2009

Financial Report 2001 – 09

Milestones in company history:

10

1886

At the age of 25, Robert Bosch opens his “Workshop for Precision Mechanics and Electrical

Engineering” in Stuttgart

1898

First sales office outside Germany opens in the U.K.

1912

First manufacturing site in the U.S. opens

1913

Foundation of an independent apprentice training department, with an industrial

apprentices’ workshop

1919

Establishment of the in-house newspaper “Bosch-Zunder”

1921

Establishment of an after-sales organization: the first Bosch Service stations start work

1932

Acquisition of the natural gas-fired appliance manufacturer Junkers & Co GmbH

1933

Acquisition of Ideal-Werke fur drahtlose Telephonie AG (later Blaupunkt GmbH, now

Robert Bosch Car Multimedia GmbH)

1967

Bosch-Siemens Hausgerate GmbH joint venture set up (known since 1998 as BSH Bosch

und Siemens Hausgerate GmbH)

1995

Five joint ventures set up in China

1996

Acquisition of the brake operations of AlliedSignal Inc in the U.S. and Europe

1998

Opening of a test center and test rack in Boxberg, Germany

1999

11

Steering systems joint venture set up with ZF Friedrichshafen AG Acquisition of a majority

stake in the Japanese Zexel Corporation (known since 2000 as Bosch Automotive Systems

Corporation)

2001

Acquisition of Detection Systems Inc, Fairport, NY (USA) Industrial leadership of

Mannesmann Rexroth AG, and its merger with the Automation Technology division to

form Bosch Rexroth AG

2002

Acquisition of the subsidiary Communication, Security, & Imaging from Philips BV,

Eindhoven, Netherlands (Bosch Security Systems BV since 2003)

Establishment of a company pension scheme for Bosch associates

2003

Acquisition of Buderus AG, Wetzlar, Germany

2004

Opening of our engineering center in Abstatt, Germany

Acquisition of Sigpack, the Swiss packaging machinery manufacturer

2005

Acquisition of the Swedish company IVT Industrier AB, Tranas

Acquisition of majority holding in Oil Control Group SpA, Milan, Italy

Bosch-Zunder published worldwide \n eight languages

2006

Acquisition, together with Mann+Hummel, Ludwigsburg,

Germany, of the Purolator filters business from ArvinMeritor Inc, Detroit, MI (USA)

Acquisition of Telex Communications Holdings Inc, Minneapolis, MN (USA)

2007

12

Acquisition of the electrical heat pump manufacturer FHP Manufacturing Company, Fort

Lauderbnle, FL (USA) Assumption of industrial leadership of Pacifica Group Ltd,

Melbourne, Australia

Acquisition of Pharmatec GmbH, Dresden, Germany

2008

Acquisition of majority shareholdings in the photovoltaics manufacturer ersol Solar Energy

AG, Erfurt, Germany (now Bosch Solar Energy AG) and the abrasives systems

manufacturer sia Abrasives Holding AG, Frauenfeld, Switzerland

Joint venture for exhaust-gas turbochargers with Mahle GmbH, Stuttgart

Joint venture with Samsung SDI to develop and manufacture lithium-ion batteries for

vehicles

2009

Acquisition of majority shareholdings in the German companies aleo solar AG (Prenzlau

and Oldenburg) and Johanna Solar Technology GmbH, Brandenburg

Acquisition of Freud SpA, Milan, Italy

2010

New manufacturing facility for eight-inch wafers goes into operation in Reutlingen,

Germany

Milestones in Product History:

1887

Construction of the first Bosch low-voltage magneto for stationary internal-combustion

engines

1897

First installation of an ignition device in a motor vehicle

1902

Delivery of the first spark plugs and the first high-voltage magneto ignition system

1927

13

Series production of Bosch fuel injection pumps for diesel engines

1928

First Bosch power tool

1933

Bosch refrigerator marks the start of household appliance manufacture

1951

Rollout of gasoline injection pumps for vehicle engines

1957

Production of car transistor radios

1958

The first Bosch washing machines are manufactured

1964

The Bosch dishwasher is launched

1967

Bosch Jetronic injection system goes into series production

1974

Introduction of the ARI traffic information system

1976

Production of lambda sensors

Development of the world’s first swivel-arm industrial robot

1978

Market launch of ABS, the world’s first series-produced antilock braking system

1979

Series production of Bosch Motronic (digital system to control gasoline enjection and

ignition)

1986

14

Series production of traction control system (TCS)

Market launch of electronic diesel control (EDC)

1989

Market launch of the Travelpilot navigation system

1995

Market launch of vehicle navigation systems with voice guidance to

destination

Introduction of the electronic stability program (ESPR)

1996

Series production of the VP44 high-pressure diesel injection pump

1997

Series production of the common-rail high-pressure

diesel direct injection system

2000

Series production of adaptive cruise control (ACC)

Series production of the DI Motronic asoline direct injection system

2002

First series application of electronic attery management (EBM)

Introduction of the Wallscanner instrument to locate invisible installations in walls)

2003

Series production of the third-generation common-rail system, with piezo inline injectors

Market launch of the Ixo, the first power tool with lithium-ion rechargeable battery

2004

Series production of the Denoxtronic fuel-metering system for exhaust-gas treatment in

commercial vehicles

2005

15

Deutscher Zukunftspreis 2005 (together with Siemens) for the development of piezo-

injection technology

Series production of the active night vision system for passenger cars

2006

Development of a gasoline direct injection system with piezo elements

2007

Introduction of the start-stop system

2008

Series production of the parking assistant

2009

50 million common-rail systems since 1997

First diesel passenger-car on the market equipped with Denoxtronic, the Bosch exhaust-

gas treatment system

2010

Rollout of the predictive emergency braking system

16

Bosch Ideologies

Bosch Ideologies

Bosch Vision

17

As a leading technology and services company, we take advantage of our global

opportunities for a strong and meaningful development. Our ambition is to enhance the

quality of life with solutions that are both innovative and beneficial. We focus on our core

competencies in automotive and industrial technologies as well as in products and

services for professional and private use. We strive for sustained economic success and a

leading market position in all that we do. Entrepreneurial freedom and financial

independence allow our actions to be guided by a long-term perspective. In the spirit of

our founder, we particularly demonstrate social and environmental responsibility –

wherever we do business. Our customers choose us for our innovative strength and

efficiency, for our reliability and quality of work. Our organizational structures, processes,

and leadership tools are clear and effective, and support the requirements of our various

businesses. We act according to common principles. We are strongly determined to jointly

achieve the goals we agree upon. As associates worldwide, we feel a special bond in our

values that we live day by day. The diversity of our cultures is a source of additional

strength. We experience our task as challenging, we are dedicated to our work, and we

are proud to be part of Bosch.

Bosch Values

The Bosch Values lay the foundation for our company’s behavior. They guide our actions

and tell us what is important to us and what we are committed to. Here as well, the main

objective is to enhance the company's competitiveness by clearly setting out the basic

values which each associate has committed to and puts into practice.

Values act as a compass in times of change, and provide appropriate orientation. They also

point the direction which cultural change within the company is meant to take. The values

are designed to help shape cooperation among associates and to lay the foundation stone

for the necessary strong economic development of the company. This means increasing

performance ability by providing orientation and trust, increasing speed by reducing

bureaucracy and controls, strengthening the identification of associates with an

international and culturally diverse company.

18

Bosch values are as follows:

Future and Result Focus

Responsibility

Initiative and Determination

Openness and Trust

Fairness

Reliability, Credibility, and Legality

Cultural Diversity

Bosch Mission

The BeQIK mission gives us bearings as we move toward our future goal. It reveals the

focal points of our actions. Our objective is to continuously improve our internal

processes. In this, CIP is the brand for the continuous improvement process at Bosch.

BeQIK stands for greater speed in everything that we do, and it stands for Quality (Q),

Innovation (I) and Customer Orientation (K). This principle will ensure the ability to

generate the profits needed to secure our growth and economic success, which

themselves are the guarantee of the company’s long-term survival.

19

BOSCH Core Competencies

For well over a century our company has built upon a unique mix of interrelated core

competencies - a mix from which we derive our competitive advantage, and which also

forms the basis for the future development of our company.

Strategic far-sightedness

Our many years of experience allow us to recognize technical and business trends in a

timely way, to set clear and compelling objectives, and to ensure that they are attained

systematically. Our objectives and actions always follow a clear long-term strategy, both

for our business field portfolio and for the global. This rigorous pursuit of long-term

objectives is based on a systematic business policy intended to preserve our

entrepreneurial freedom and financial independence at all times.

Innovative strength

The germ cell of our company and driving force behind our development is our

determination to use our own creative ideas to generate new technological solutions that

deliver a high level of customer utility. The ability to do this stems from the high

qualifications and motivation of our associates and our close cooperation with customers

who are at the cutting edge of technology. This includes the readiness to invest significant

resources in our own basic research, as well as in projects whose market success will only

be attained in the long term.

Efficient processes

As a mature industrial company, we have extensive experience of processes on all levels

of value creation, from development and production to sales. Our strengths also include

our deep-rooted drive and capacity for continuous improvement (CIP), which we use to

20

continuously increase our efficiency in achieving the best return on investment. In global

competition, this allows us to perform a balancing act between functional differentiation

of our products on the one hand and cost leadership in commodity products on the other.

Quality and reliability

Since its inception, our company has earned a reputation for providing products and

services of the highest quality and reliability. Robert Bosch’s statement that “quality is our

most valued asset” has remained an unwavering guideline for our business policies. Its

successful implementation is the reason for the excellent image of the Bosch brand. Our

customers put their trust in our ability to deliver high quality, even as products and

systems become more complex. This trust is based on our strength in implementing

necessary improvements in a fundamental and lasting way.

Global Presence

The company has its roots in Germany, but has also always had a strong international orientation. In the areas in which we do business, hardly any other companies have such a broad global presence. Our global production and development sites work together as a very closely-knit network. This network and our global experience put us in an excellent position to exploit opportunities in current and future growth regions of the world.

Human resources development

The progress of our company is supported by systematic and consistent human resources

work. This work ensures that our associates receive the best possible preparation for

future requirements. Our internal associate training system makes a great contribution

here. To help to bring this knowledge to fruition we also rely on an intact corporate

culture. Such a culture helps in a special way to promote commitment to attaining crucial

corporate objectives and to integrate the various global cultures to form a unified Bosch

identity.

Bosch Business System (BBS)

21

To be able to implement our Bosch Vision, we need to continuously develop and to

manage change. This requires a systematic methodology that shows us in concrete terms

where we need to re-invent ourselves, and how well we are mastering these shifts and

structural changes in practice. BBS is our response to the need for a systematic

methodology for our company.

It is built upon a uniform, clear, and simple structure that is oriented toward the core and

support processes of our company. We understand core processes to be the three value-

creating processes from the market to the customer. BBS contains specific subsystems for

each of these core processes and for management and support processes.

Bosch Business System

22

Robert Bosch India Limited

BOSCH Limited in India

Robert Bosch India Limited (RBIN)

23

Bosch in India called as RBIN is one of the largest Indo German company in the

country having turnover of 30 billion INR. (approx.550 million €). The major products of

RBIN are Fuel Injection Equipments (for Diesel engines), Auto electrical, Power Tools, SPM,

Household appliances and so on. The company got established in 1951 and is a leader in

the Indian Automotive component manufacturing Industry.

Bosch Limited Corporate Office in Bangalore, India

RBIN has four plants in India, located at Bangalore in south, Nashik in west and Jaipur in

Nort west India. Customers includes all Indian Auto majors like TATA Motors, Mahindra &

Mahindra, Ashok Leyland, Force Motor India, Indian Railways, Defence Ministry of India

and many more. Not only national, but our exports to FORD, GM, DAWEOO, HYUNDAI,

FIAT, NISSAN, DUETZ , LOMBARDINI is proving our prominent presence in the

International market. In addition to the four auto component manufacturing plants in

India, Bosch REXROTH in Ahmedabad, Kalyani Brakes in Pune and Robert Bosch India ( for

IT & Soft Ware) Bangalore also represent the BOSCH Group of Germany in India.

RBIN is India’s largest auto component manufacturer. RBIN employs about 18,030

associates, and in business year 2008 generated net sales of 45,416 million INR. Bosch

holds close to 70% stake in RBIN. Operations began in 1951 as a two-person team in

Chennai. Activities were importing and marketing Bosch automotive products. In 1954, the

company set up a manufacturing plant for spark plugs for petrol engines, and fuel

24

injection equipment for diesel engines at Bangalore. It is a pioneer and leader in the Indian

automotive segment for the last 56 years.

BOSCH Limited in India

In India, Bosch is a leading supplier of technology and services, and has a strong presence

in the country at numerous locations in diverse industry segments - both automotive and

non-automotive. Bosch has grown over the years to 11 manufacturing sites and 4

development centers. RBIN manufactures and trades in all the three business sectors of

Bosch. It has a strong nationwide service network which spans across 1,000 towns and

cities with over 4,000 authorized centers to ensure widespread availability of both

products and services.

25

RBIN is the largest auto component manufacturer and one of the largest Indo-German

companies in India. From the year Bosch entered India it has focused on state-of-the-art

technology and continued commitment to world-class quality. RBIN is the country’s

largest manufacturer of diesel fuel injection equipment and one of the largest in the

world.

It manufactures and trades products as diverse as diesel and gasoline fuel injection

systems, auto-electrical, industrial equipment, special purpose machines, packaging

machines, electric power tools and security systems. The major products of RBIN are Fuel

Injection Equipments (for Diesel engines), Auto electrical, Power Tools, SPM, household

appliances and so on. The Company has developed excellent R&D and manufacturing

capabilities, a strong customer base and its market leadership is testimony to the high

quality of technology. As Bosch focuses on developing technology hubs in Asia, RBIN is

gearing up to meet these challenges.Bosch was awarded as “Auto component

manufacturer” in 2005. Its customers includes all Indian Auto majors like TATA Motors,

Mahindra & Mahindra, Ashok Leyland, Force Motor India, Volvo-Eicher, Escorts Ltd,

Kirloskar Oil Engines, Indian Railways, Defence Ministry of India and many more. It exports

to international customers like Mercedes Benz, John Deere, Peugeot, Daimler Chrysler,

Volkswagen, Renault, Ford, General Motors, Daewoo, Hyundai, FIAT, Nissan Motors Spain,

Cummins, Duetz, and Lombardini USA proving prominent presence in the International

market.

Bosch’s slogan ‘Invented for Life’ is part of its long tradition, through which it

communicates the group’s core competencies and vision, that include technological

leadership, modernity, dynamics, quality and customer orientation.

RBIN is headquartered in Bangalore with manufacturing facilities in Bangalore, Nashik,

Naganathapura and Jaipur. All the four plants are TS 16949 and ISO 14001 certified.

26

NET Sales and Exports

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

2001 2002 2003 2004 2005 2006 2007 2008

Year

Net Sales

Exports

R s.

Mi

lli o n

Profit Before Tax and Profit After Tax

27

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

2001 2002 2003 2004 2005 2006 2007 2008

Year

R s.

Mi

lli o n

Profit before tax

Profit after tax

28

Bosch Nashik Plant (NaP)

29

Bosch Nashik Plant

Nashik Plant is one of the important establishments of Bosch in India since last 40

years. With the constant efforts for excellence in Quality and delivery commitments, the

plant received good acceptance by customers in Europe, USA and South East Asia. At

present the export business is about 25% of the plant output. The plant is committed to

continue its efforts for total customer satisfaction in areas of Quality, Cost and Delivery.

RBIN in Nashik is manufacturing nozzles and injectors for classical as well as Euro series.

The plant is spread on 400,000 sq m, having 4 manufacturing hangers. In addition to TS

16949, plant is also certified for ISO 14000, the internationally acknowledged certificate

for Environment protection. Plant is well equipped with latest in manufacturing,

cleanliness and proving of product performance. This has a strong back up of easily

accessible BOSCH R&D for product and manufacturing processes.

Bosch Nashik Plant

30

Products manufactured at BOSCH NaP

NaP is manufacturing nozzles, nozzle holders and injectors for classical as well as Euro

series.

Types of Nozzles:

DN nozzles: These are the Pintle type nozzles. Pintle-type nozzles have a coaxial jet and

are used in pre-combustion (IDI) chamber engines and turbulent chamber engines. The

nozzle opening pressures it between 115 and 400 bar.

Orifice Nozzles: These Orifice nozzles have several Spray orifices and are fitted on engines

with direct injection. The nozzle opening pressure is between 100 and 400 bar. These are

termed as: DL, DLL, DSLA etc. these types are orifice types of nozzles but the difference in

them is the shaft diameter and length of the collar.

Types of Nozzle Holders:

Nozzle Holders are classified according to their shaft diameter.

P – Type Nozzle Holder: its characteristic diameter is 17mm.

Modular Type: Its characteristic diameter is 21mm.

Forged Type: It is made out of forging. & have diameter 30 mm.

Types of Injectors:

Common Rail Injectors (CRI)

Conventional Injectors

31

Following are the pictures of the parts produced at NaP:

Common Rail Injector

Injector Body

Nozzles DN Nozzles DL Nozzles

CRI injector components

Nozzles DLL Conventional injectors

Nozzles DSLA Injectors Horn Type Injector KCA

32

Milestones

1969 Start of Pilot Plant

1974 SOP - Nozzles and Nozzle Holders

1988 SOP - Elements and Delivery Valves

1992 ISO 9001 Certification

1996 DSLA Injectors (Euro I) : Manufacture with CKD imports

1997 QS 9000 Certification

1998 SOP - DSLA Nozzles

1999 First export to Automotive Aftermarket of Bosch

2000 DSLA nozzles: Approval up to 1800 bar pressure

2001 One Millionth DSLA Nozzle produced

2002 Fifty Millionth NHA produced

2003 ISO/TS-16949, ISO14001 certification, Lead plant status-DN nozzles

2004 Lead plant status for KCA, Sixty Millionth NHA production

2005 27% Export Vision fulfillment

2006 CRI Part production

2007 Common Rail Injector production

2008 Eighty millionth NHA produced

33

Bosch NaP Supply Chain

34

Bosch NaP Supply Chain

Supply Chain Management:

Supply Chain Management spans all movement and storage of raw materials,

work-in-process inventory, and finished goods from point-of-origin to point-of-

consumption. It encompasses the planning and management of all activities involved in

sourcing, procurement, conversion, and logistics management activities. It also includes

coordination and collaboration with channel partners, which can be suppliers,

intermediaries, third-party service providers, and customers.

Supply Chain Management integrates supply and demand management within and across

companies.

Steps in Supply chain management:

1. Customer requirement, variety reduction involving design & marketing personnel.

2. Concept freezing

3. Prototype & approval from the customer

4. Part list finalization involving our suppliers

5. Technical discussions & explanation to suppliers (including certifications)

6. Supplier feedback

7. Price finalization

8. Submission of ISIR

9. Acceptance of 3 continuous lots without failure

10. Demand planning and forecasting including current inventory, coordinating the

demand forecast of all customers and sharing the forecast with all suppliers

11. Production scheduling for each manufacturing facility in the supply chai

12. Assembly of Child parts, Testing & Packaging

13. Change Management (if applicable)

14. Logistics

35

Production Activity & Control,

Purchasing

Execution

Material Requirement Plan

Master Production Schedule

Sales & Operations

Business Plan

Planning

15. Addressing customer complaints

16. Regular supplier Monitoring

The triggering parameter for any Supply Chain is the Business or Strategic Plan which is

evaluated at the start of the year. This Business Plan drives the entire functioning of the

Company.

Supply Chain Matrix

Supply Chain Matrix

36

Demand Forecast:

In Bosch, the Business Plan is composed after getting the information about Sales forecast

from the Sales department in Bangalore. The Bosch, forecast is calculated for the next 3

years. The plants in Bosch Group are divided on many grounds. One of the bases of the

division is by location. For example, the operations in India are collectively known as

Robert Bosch India i.e. RBIN.

International Product Network:

The forecasting is done by the International Product Network (IPN) which is responsible

for preparing a Sales forecast for each of the Business areas. The IPN prepares a

consolidated list for all the demands in each product section. The IPN is in charge of

delegating the demand requirements for each business area based upon the capacity, lead

time and feasibility of that division.

VPZ:

The IPN provides a list to each of the Business areas, for example, RBIN which holds the

sales forecast for this area in the coming 3 years. The VPZ basically means Planned Sales

Volume.

TPZ:

The VPZ showcases the forecast for the Business Area. In order to get the forecast for

each plant, the VPZ is further divided into TPZ. The meaning of TPZ is the forecast volume

for each plant for the next 3 years. The TPZ is divided amongst the plants producing the

respective products according to the capacities and performances. The plant functioning

efficiently will get the maximum business. The capacity is defined in terms of TEK which

means Technical Capacity. A ratio of TEK and TPZ is taken in order to confirm if the plant is

in a position to fulfill the demand.

37

Capacity Constraints:

Each plant evaluates its own capacities against the demand forecasts. If a plant needs to

develop further capacity to accommodate the entire forecast volume then it can approach

the IPN for the same.

After dividing the VPZ, according to the capacities of the plants in that Business area, if

there are any quantities which are remaining and beyond threshold of these plants, then

they are produced by plants in other locations. This decision is taken by IPN based upon

the availability of the sister plants for that product.

Business Planning at Bosch Nashik:

Based on the TPZ values, a Business Plan is prepared for Nashik plant. The forecast

provided in TPZ is for 3 years but the official Business Plan is prepared for the immediate

year. This is prepared by ‘the Customer, Finance & Accounting department (CFA)’ at NaP.

The constituents of the Business Plan are:

Capital Investment & Capacities:

The investment is decided by the Head-Quarters in Germany for each plant. This plant-

wise investment planning decides how much quantity can be produced for the coming

year. The capacity requirements are also evaluated by the CFA department. If any

additional machines or equipments are required by the plant then a proposal is sent to the

Head-Quarters accordingly.

Material Cost:

Based on the forecast, an estimate is prepared to know how much material will be

consumed next year. This material cost is evaluated by the Purchase department. The

input for this calculation is the sales quantity received for the next year.

38

Power Utilization:

One of the important factors in preparing the Business Plan is the power utilization. The

TEF department takes care of the analysis required to find out how much power will be

consumed for production of estimated sales quantity for next year. This analysis is done

based upon the history where in the power consumed for the past production is

compared. If more power is required then arrangements have to be made in advance. The

cost of power consumption is calculated accordingly.

Man-Power Requirements:

As in case of power consumption, the man-power requirements are also derived by

looking at the historical data. The average time taken for completion of a particular task is

assessed and accordingly the man-power is allocated.

Productivity Improvements:

In case any new plan or strategy is to be implemented for the production in the coming

year, the Management takes certain decision to achieve the target. New ideas and

schemes are implemented which needs changes in the methodology which is being

followed till recently.

The Business Plan for the next year is now proposed and the entire year is planned

accordingly.

The MPS is followed by the Business Plan which is prepared each month.

39

Customer Demands(GM & Hyundai)

Procurement of raw materials fromvarious locations.

Production of components

Dispatch to RBKR

RBKR demands forrequired parts

Delivery tocustomers

Production Planprepared

at Bosch Nashik according to

the requirements.

Illustration of Supply Chain at Bosch NaP

In order to illustrate how the Supply Chain in Bosch works, let us consider an example of

CKD.

CKD – Completely Knock Down Components:

The CKD components belong to the Common Rail Injector (CRI) product being

manufactured at Bosch NaP. The CRI consists of 110 components including Shim and

Magnet groups. The basic components are 35 in number, out of which, 5 components are

manufactured at NaP. These include Body, Valve-set and Armature Group i.e. Bolt, Guide

and Plate. Rests of the 30 parts are imported from various locations across the world.

CKD components for CRI are required by Robert Bosch Korea (RBKR). They supply to

customers like GM and Hyundai. Also, these components are used in the assembly line for

CRI manufacturing at Bosch NaP, in order to supply local customers like Mahindra &

Mahindra, Tata Motors and SPIL.

CKD Information Flow at NaP:

The lead time for CKD is 3 months. The information flow for CRI CKD components starts

with the RBKR putting in requests for their customers’ demand. A basic flowchart

displaying the general process is shown below:

Information Flow - CKD

40

RBKR enters orders in EVA.

Confirmation from CLP1 in APO.

Production plan generated automatically or entered manually in APO.

Automatic order flow from EVA to APO in SAP.

Automatic confirmation from APO to EVA.

Customer Order by RBKR:

According to the demand information received from the customers, RBKR puts in a

request for CKD in the EVA software. This request order directly flows from EVA to the

Advanced Planning Optimizer tool (APO) in SAP system.

This request order is confirmed by the CLP1 team in APO. This confirmation is

automatically reflected in EVA. Upon confirmation, the MPS for CKD components including

those required for production of CR injectors for Local Customers is created in the system.

The MPS can also be put in manually depending upon the plan.

Order Sequence - CKD

41

Customer, Planning and Logistics

(CLP)

42

Customer, Planning and Logistics (CLP)

Introduction to CLP

The CLP (Customer, Planning and Logistics) department, with its comprehensive functions,

works as a driving, coordinating and synchronizing force between the customers, suppliers

and production.

CLP’s endeavor: The right products, in right quantity and quality, at the right time and

right place.

CLP offers the customers:

Logistic audit

Partnership

Direct contact with all the customers

Lateral and competent contact person

Customer service point

24 Hour service

CLP offers the suppliers:

Logistic Manual

DV-solutions

Foresight and realistic planning

Partnership

Lateral and competent person

Coaching

43

The Customer, Planning and Logistics range consists of 5 sub-units:

CLP1 – Customer Planning for (CRI+ DHK), Exports , Inland Customers

CLP2 – Inbound Logistics , Receiving & Dispatch of Finished Goods

CLP3 - Excise / Customs / CRI EOU Division Legal Compliance

CLP4 - Direct Material Planning & Procurement ( Local & Import)

CLP5 – Indirect Material Planning & Procurement ( Local & Import)

The primary step which is responsible for the initiation of the Supply Chain at NaP is

through receipt of the customer order. Every month, the customer orders are

consolidated by the Customer & Logistics (CLP1) department.

The responsibilities of the CLP1 department are as follows:

Customer Planning for Exports DHK products / CRI CKD ( EOU Division)

Customer Planning for Aftermarket ( Inland / Exports)

Capacity co-ordination for CRI Injectors / Conventional Products across the globe

Short / Medium / Long term forecasting

Single point contact for all customers for NaP Location

Meeting Customer requirements in the aspects of Delivery / Quality

The orders are accepted by the department from 1st to 14th of every month. Customer

orders are received by the CLP1 in two ways. The Sales department in Bangalore sends a

consolidated list of required products from all over the world to the CLP1 department.

Secondly, internal customers like plants and warehouses directly place their orders

through ERP-based software called EVA.

44

Functioning of Software Tools

45

Functioning of Software Tools

The three main software tools that are used at CLP are EVA, SAP [P47 and APO] and

LIWAKS.

EVA:

EVA is an ERP (Enterprise resource planning) Based Software. EVA is used to enter

customer information into the system.

Delivering host type information to the familiar setting of Windows, EVA takes PC-to-host

communications several steps higher by streamlining how the user works in an enterprise

environment.

EVA gives the user access to multiple host types on your enterprise network IBM

Mainframe, IBM AS/400, VAX/VMS, UNIX, or asynchronous systems via most direct,

remote, or LAN connections. From the point-and-click environment of the PC the user can

run host applications, transfer files, and integrate data into Windows programs.

EVA has two sides. The LHS is the Customer Demand Side which is used to enter the KWT

(Customer Scheduled Delivery Date) and Quantity. The RHS is the Planning side which is

used to enter the AWT (Bosch Confirmed Delivery Date) and Quantity.

EVA

46

SAP

SAP means System Application & Products in Data Processing. SAP is a reliable and robust

ERP system which integrates the functions of sales, planning, procurement, production,

warehouse management, plant maintenance, quality, finance, controlling, reporting etc.

SAP is a comprehensive Business solution. R/3 indicates Real time/3 tier architecture,

which is made up of:

1. Database Server

2. Application Server (Data Processing)

3. Presentation Server (User Interface i.e. SAP GUI)

SAP Logon Menu

47

Two of the main software tools used in SAP are P47 and APO

P47

P47 is the software tool which integrates the whole enterprise via various modules like

production, planning, procurement, sales & distribution, purchase, quality, accounts, HR

etc.

APO

SAP Advanced Planning and Optimization (SAP APO)

SAP Advanced Planning and Optimization (SAP APO) offers a fully integrated pallet of

functions that you use to plan and execute a supply chain processes. SAP APO supports

the following:

Business collaboration on a strategic, tactical, and operational planning level

48

Co-operation between partners at all stages of the supply chain process; from order

receipt, stock monitoring, through final shipping of the product

Cultivation of customer and business partner relationships

Constant optimization and evaluation of the supply chain network’s efficiency

APO

LIWAKS:

Delivery performance and Call-off development Warning and Control system

(LiefererfüllungAbrufverhalten Warn- und Kontrollsystem)

The LIWAKS program was developed to have the required information available, when

meeting with a customer, to compare RB delivery performance with the customer’s own

evaluation, as well as information on the trends in call-off fluctuations.

49

LIWAKS

Functions of LIWAKS

LIWAKS consists of 3 functions:

Delivery performance

In the Delivery Performance function, the customer’s scheduled item and the actual

dispatched item are saved into the database when the delivery note is created. Delivery

performance can be evaluated based on the customer's scheduled delivery date or the

order confirmed dispatching date within a variable period of time after the dispatch date.

Customer planning development

This function saves all customer changes of call-offs and changes to scheduled deliveries in

the database. The customer call-offs are placed together with an RB part number in a

table. This juxtaposition can be called up in a variable time slot. The time slot is defined by

the transmission date of the call-off and the customer's scheduled delivery date or the

order dispatching date.

50

Customer planning indicator

The customer planning indicator application enables a quick indexed overview of the

trends for selected part number and customers over a period of six months to twelve

weeks. The result is displayed graphically.

Tolerance Factor (Parameter)

A delivery performance is evaluated differently from customer to customer. LIWAKS offers

the possibility to customer specific parameter.

The maximum permissible deviation of the delivery quantity (in %) and the delivery date (in

number of days) compared to original customer data can be defined per customer no. and

supplier plant.

Within deviation limits, a delivery will be evaluated as fulfillment.

Rule for Evaluating Delivery Performance

Customer demand quantity = Shipping QuantityCustomer Demand date = Shipping Date

Fulfilled delivery Items

Delivery Performance in % = Σ Fulfilled Delivery Items (In accordance with KWT or AWT) Σ All Delivery Items

51

APO

EVA

Data flow

Following is a flowchart showing the Data flow among the software tools:

Notes:

LIWAKS takes all the data from EVA only.

Flow of Customer order to APO from EVA is via P47, emfor transaction is used to trigger

the orders if they stuck somewhere in system.

Supplier confirmation is inputted in APO and flows in EVA to Customer.

P47 LI

WAKS

52

Customer Delivery Performance

Improvement

53

Customer Delivery performance improvement of CRI and

Nozzle Holder Assembly

Overview

There are a number of suppliers available in market. A customer will always divert to one

which satisfies him the most in terms of quality & price. In this competitive market it is

must for organizations to judge where they stand and how they can improve. For any

organization customer is the most important factor. LIWAKS is a tool which by its own

procedure and with customer allowed tolerances measure the delivery performance. This

gives us a clear idea of the level of satisfaction of customer and also highlights the

problems. With the help of this, potential for improvement can be spotted accurately

Objective of the project

The main objective of my project was to monitor and improve the customer delivery

performance of 14 Original Equipment parts (4 common rail injector and 10 nozzle holder

assembly parts). These parts have a very high dispatch frequency and therefore it is very

important to improve their delivery performance.

54

Common Rail Injector Parts

Objective: Delivery performance improvement of four CRI parts- Part nos. 0445.110.260,

0445.110.310, 0445.110.316, 0445.110331

Details:

The four runner CRI parts were chosen and their delivery performance was monitored.

These parts are very important and have a very high dispatch frequency.

Part no. Customer no. Customer Name and Location Dispatch Frequency

0445.110.26

0 208181

Mahindra and Mahindra

Igatpuri

Twice a week ; approx.

1500/dispatch

0445.110.31

0 208181


Igatpuri


1500/dispatch

0445.110.31

0 208465


Chakan


1500/dispatch

0445.110.31

6 208385 SPIL

Daily ; approx.

2400/dispatch

0445.110.33

1 208446 FIAT

Alternate days ; approx.

2660/dispatch

55

Customer Delivery Fulfillment Report (April-May 2010)

Date Delivery Fulfillment

Part no

445110260 445110310 445110310 445110316 445110331 Total

19-Apr-10

With Parameters 6.06% 16.70% 100.00% 0.00% 100.00% 37.32%

Without Parameters 0.00% 0.00% 100.00% 0.00% 100.00% 29.58%

20-Apr-10

With Parameters 27.91% 15.00% 100.00% 0.00% 100.00% 41.61%


21-Apr-10

With Parameters 24.00% 14.29% 100.00% 40.00% 100.00% 43.58%


22-Apr-10

With Parameters 22.64% 18.57% 100.00% 28.57% 100.00% 43.50%


23-Apr-10

With Parameters 22.64% 18.67% 100.00% 22.22% 100.00% 44.09%


24-Apr-10

With Parameters 22.64% 14.67% 100.00% 22.22% 100.00% 42.99%


26-Apr-10

With Parameters 22.64% 13.92% 100.00% 14.29% 100.00% 41.06%


27-Apr-10

With Parameters 22.64% 12.36% 100.00% 12.00% 100.00% 39.41%


28-Apr-10

With Parameters 6.06% 16.07% 100.00% 83.33% 100.00% 39.35%


29-Apr-10

With Parameters 22.22% 11.00% 100.00% 10.00% 100.00% 37.07%


3-May-10

With Parameters 0.00%

N/A N/A

66.67% 100.00% 55.00%

Without Parameters 0.00% 0.00% 100.00% 20.00%

4-May-10

With Parameters 0.00%

N/A N/A

53.85% 100.00% 38.71%

Without Parameters 0.00% 7.69% 100.00% 16.13%

6-May-10

With Parameters 0.00% 87.50%

N/A

53.33% 100.00% 57.69%

Without Parameters 0.00% 0.00% 13.33% 100.00% 15.38%

7-May-10


N/A

64.00% 100.00% 63.38%


8-May-10


N/A

64.00% 100.00% 63.38%


11-May-10


N/A

47.50% 100.00% 55.65%


12-May-10


N/A

47.50% 100.00% 55.65%


14-May-10


N/A

51.72% 77.42% 46.88%


15-May-10


N/A

58.62% 77.42% 49.38%


56

17-May-10

With Parameters 7.50% 43.75% 100.00% 58.46% 77.42% 48.69%


19-May-10

With Parameters 7.50% 43.75% 100.00% 64.00% 66.67% 50.00%


22-May-10

With Parameters 5.45% 43.75% 100.00% 60.87% 66.67% 47.60%


24-May-10

With Parameters 5.45% 38.18% 100.00% 62.89% 69.23% 48.12%


Delivery Performance Fulfillment Graph (April-May 2010)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

20-Apr-10

21-Apr-10

22-Apr-10

23-Apr-10

24-Apr-10

26-Apr-10

27-Apr-10

28-Apr-10

29-Apr-10

3-May-10

4-May-10

6-May-10

7-May-10

8-May-10

11-May-10

12-May-10

14-May-10

15-May-10

17-May-10

19-May-10

22-May-10

24-May-10

Date

Del

iver

y F

ulf

illm

ent

With Parameters

Without Parameters

Increase in delivery performance of 0445110331

Decrease in delivery performance of 0445110331

Increase in delivery performance of 0445110331, 0445110310 dispatch started for the month of May

Decrease in delivery performance of 0445110331



Problems:

The problems were mainly occurring in part no. 445.110.316. In the beginning the details

for this part were not being displayed in LIWAKS. It was observed that the details for 316

were not flowing from EVA and LIWAKS. Further, the order was not being shown in request

line in APO. The scheduling assignment was not getting processed in the system. Also, the

orders for this part were now flowing from EVA to APO.

445.110.310 and 445.110.331 data was also not flowing properly in APO. Another problem

57

was that 310 was showing 100% fulfillment no matter what the actual fulfillment

percentage was.

Solution:

We analyzed the master data. Upon analysis we discovered that there were problems with

the master data in EVA. The data had not been updated and also there were some errors

in the data in some places.

To solve this problem, we updated the master data in EVA. We found that old schedule

agreements were open with junk orders so we cleaned them up and closed them. By

triggering the I-DOC generated we managed to establish proper information flow for the

parts.

Value Stream for CRI

The following are the goals that were set for 2010 based on the project.

58

35.86% Fulfillment

(With Parameters)

70 % Fulfillment

(With Parameters)

90% Fulfillment(With Parameters)

Deadline: October 2010

Delivery Fulfillment Percentage for April

Deadline: August 2010

PDCA for CRI

Trend

Target Month

Area Apr-10

%

36.8830.3148.7080.00

J an Feb Mar Apr May J un J ul Aug Sep Oct Nov Dec

1 CLP5 30%

2 CLP5 20%

3 CLP5 20%

4 CLP5 10%

5 CLP5 20%

Overall status:

Legend : Should Start Actual Started Status:

End Ended Green In target

Milestone Compl. Milestone Yellow Upto 10,0% under target

Realization Realized Red >10% under target

Check the flow in EVA is as per calloffs and tolerance parameters

Maintain actual calloffs dates in EVA and APO.

2010 Target

PDCA

ResponsibilityNr. Major actions planned

LIWAKS OE _IN PERFORMANCE

Proceeding: NaP

May average

Average : 2009

April average

Distribution list : Resp….. Lo: NaP/CLP

Status

Correction of master data in EVA and APO

2010Contribution to

objective T-EUR

Check whether the customer tolerance parameter for each customer is set properly.

Ensure that flow from EVA to APO is proper.

30.31

48.736.88

39.3 32.76224.17

21.33

10

20

30

40

50

60

70

80

90

100

2009 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010

59

Nozzle Holder Assembly

Objective

Delivery performance improvement of ten Nozzle Holder Assembly parts– part no.

F002C7Z103, F002C7Z112, F002C7Z140, F002C7Z142, F002C7Z207, F002C8Z852,

F002C8Z859, F002C8Z864, F002C8Z880, F002C8Z885.

Details:

Part no. Customer no. Customer Name and Location Dispatch Frequency

F002C7Z103 208387 Mahindra and Mahindra TD, Kandivli Approx. 960 Parts/ Day

F002C7Z112 208299 Greaves Ltd., Ranipet Approx. 960 Parts/ Day

F002C7Z140 208313 Ashok Leyland, Hosur Approx. 960 Parts/ Day

60

F002C7Z142 208387 Mahindra and Mahindra TD Approx. 960 Parts/ Day

F002C7Z207 208203 Simpsons Ltd., Annasalai Approx. 960 Parts/ Day

F002C8Z852 208210 T M L, Pune Approx. 960 Parts/ Day

F002C8Z859 208210 T M L, Pune Approx. 960 Parts/ Day

F002C8Z864 208189 TATA Cummins Ltd. (TCL) Approx. 960 Parts/ Day

F002C8Z880 208189 TATA Cummins Ltd. (TCL) Approx. 960 Parts/ Day

F002C8Z885 208368

Mahindra and Mahindra Automobiles

Division, Kandivli Approx. 960 Parts/ Day

Customer Delivery Fulfillment Report (April-May 2010)

Date Delivery Fulfillment

Part no

To

tal

F002C

7Z103

F002C

7Z112

F002C

7Z140

F002C

7Z142

F002C

7Z207

F002C

8Z852

F002C

8Z859

F002C

8Z864

F002C

8Z880

F002C

8Z885

20-Apr

With Parameters0.00% 33.33% 31.25% 60.00% 0.00% 0.00% 0.00% 52.94

%50.00% 73.33% 35.86%

Without Parameters0.00% 8.33% 0.00% 30.00% 0.00% 0.00% 0.00% 41.18

%8.33% 30.00%

14.48%

23-Apr

With Parameters0.00% 37.50% 23.81% 42.86% 0.00% 5.00% 0.00% 57.14

%56.25% 59.46%

34.25%


%25.00% 24.32%

14.28%

24-Apr

With Parameters0.00% 37.50% 23.81% 42.86% 0.00% 5.00% 0.00% 57.14

%56.25% 59.46%

34.59%


%25.00% 24.32%

14.30%

26-Apr

With Parameters33.33% 35.29% 30.43% 42.86% 0.00% 4.55% 0.00% 52.17

%50.00% 53.66%

33.66%

Without Parameters0.00% 5.88% 0.00% 21.43% 0.00% 4.55% 0.00% 30.43 22.22% 21.95%

14.46%

61

%

27-Apr

With Parameters0.00% 33.33% 31.25% 60.00% 0.00% 0.00% 0.00% 52.94

%50.00% 73.33%

36.11%


%8.33% 30.00%

14.58%

28-Apr

With Parameters14.29% 35.00% 25.93% 42.86% 4.55% 8.00% 4.76% 53.85

%45.00% 48.89%

31.14%


%20.00% 20.00%

10.96%

29-Apr

With Parameters11.11% 35.00% 25.93% 42.86% 4.55% 11.54% 4.76% 53.85

%45.00% 46.81%

31.20%


%20.00% 19.15% 10.20%

3-May

With Parameters100.00% 100.00

%0.00% 100.00

%0.00% 100.00

%0.00% 0.00% 100.00% 0.00%

50.00%

Without Parameters0.00% 0.00% 0.00% 100.00

%0.00% 0.00% 0.00% 0.00% 100.00% 0.00%

20.00%

4-May

With Parameters

N/A

100.00%

50.00%

N/A

50.00% 0.00% 50.00% 50.00%

50.00% 100.00%55.56%

Without Parameters0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 33.33%

5.56%

6-May

With Parameters

N/A

66.67% 20.00%

N/A

66.67% 0.00% 40.00% 25.00%

33.33% 83.33%43.75%

Without Parameters0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 16.67%

3.13%

7-May

With Parameters 100.00% 66.67% 16.47% 0.00% 60.00% 0.00% 40.00%40.00

% 25.00% 85.71% 43.90%

Without Parameters 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 14.29% 2.44%

8-May

With Parameters 100.00%75.00% 16.67%

0.00%50.00% 0.00%

40.00%33.33

%20.00% 85.71%

41.30%

Without Parameters 0.00%0.00% 0.00%

0.00%0.00% 0.00%

0.00%0.00% 0.00% 14.29%

2.17%

11-May

With Parameters 100.00%42.86% 16.67%

0.00%55.56% 0.00%

42.86%33.33

%12.50% 61.54%

35.71%


0.00%0.00% 0.00%

0.00%0.00% 0.00% 7.69%

1.43%

12-May

With Parameters 100.00%50.00% 28.57%

0.00%60.00% 100.00

% 42.86%40.00

%22.22% 66.67%

43.04%


0.00%10.00% 0.00%

0.00%10.00

%11.11% 20.00%

10.13%

14-May

With Parameters 100.00%44.44% 44.44%

0.00%63.64% 25.00%

54.55%50.00

%27.27% 70.00%

50.00%


0.00%9.09% 8.33%

18.18%16.67

%9.09% 20.00%

15.31%

15-May

With Parameters 100.00% 50.00% 50.00% 0.00% 100.00% 63.64%54.55% 53.85

%30.77% 66.67%

52.29%

Without Parameters 0.00% 20.00% 40.00% 0.00% 0.00% 9.09%18.18% 15.38

%15.38% 20.83%

17.43%

17-May

With Parameters 50.00%45.45% 50.00%

33.33%66.67% 30.77%

50.00%46.67

%28.57% 62.96%

48.76%


0.00%8.33% 7.69%

16.67%13.33

%14.29% 18.52%

15.70%

19-May


20.00%57.14% 35.71%

42.86%55.56

%29.41% 62.07%

48.23%


0.00%7.14% 7.14%

14.29%11.11

%11.76% 17.24%

13.48%

22-May


20.00%50.00% 41.18%

41.18%52.17

%38.10% 60.61%

46.78%


0.00%6.25% 5.88%

11.76%8.70% 9.52% 18.18%

11.70%

Delivery Performance Fulfillment Graph (April-May 2010)

62

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

20-Apr-10

23-Apr-10

24-Apr-10

26-Apr-10

27-Apr-10

28-Apr-10

29-Apr-10

3-May-10

4-May-10

6-May-10

7-May-10

8-May-10

11-May-10

12-May-10

14-May-10

15-May-10

17-May-10

19-May-10

Date

Del

iver

y F

ulf

illm

ent

With Parameters

Without Parameters

Increase in delivery performance of all 10 parts

Increase in delivery Performance of F002C7Z142, F002C8Z880

Decrease in delivery performance of F002C7Z112,F002C7Z140, F002C8Z859, F002C8Z864, F002C8Z880, F002C8Z885

Increase in delivery performance of F002C7Z112, F002C7Z140, F002C7Z207, F002C8Z852, F002C8Z864

Decrease in delivery performance of F002C7Z140, F002C7Z142, F002C7Z880, F002C7Z885

Decrease in delivery Performance of F002C7Z42, F002C8Z880

Increase in delivery Performance of F002C7Z112, F002C8Z852 F002C8Z880

Problems with the parts:

The values were getting displayed in the customer demand column EVA, but not in the customer

request row in APO. There was an I-doc error occurring in many cases.

The values in the planning column were initially not matching the values in the confirmation row

in SAP in some cases. The parts were initially showing an overall low delivery performance

fulfillment.

Solution to the problems:

The master data in EVA was updated regularly. The old schedule agreements cleaned and

closed. By triggering the IDOC generated we managed to establish proper information

flow for the parts.

Value Stream for Nozzle Holder Assembly

63

35.86% Fulfillment(With Parameters)

60 % Fulfillment (With Parameters)

Deadline: October 2010

Delivery Fulfillment Percentage for April

Deadline: August 2010

80% Fulfillment(With Parameters)

PDCA for Nozzle Holder Assembly

Checklist for software tools

Trend

Target Month

Area Apr-10

%

36.8830.3148.7080.00

J an Feb Mar Apr May J un J ul Aug Sep Oct Nov Dec

1 CLP5 30%

2 CLP5 20%

3 CLP5 20%

4 CLP5 10%

5 CLP5 20%

Overall status:

Legend : Should Start Actual Started Status:

End Ended Green In target

Milestone Compl. Milestone Yellow Upto 10,0% under target

Realization Realized Red >10% under target

Check the flow in EVA is as per calloffs and tolerance parameters

Maintain actual calloffs dates in EVA and APO.

2010 Target

PDCA

ResponsibilityNr. Major actions planned

LIWAKS OE _IN PERFORMANCE

Proceeding: NaP

May average

Average : 2009

April average

Distribution list : Resp….. Lo: NaP/CLP

Status

Correction of master data in EVA and APO

2010Contribution to

objective T-EUR

Check whether the customer tolerance parameter for each customer is set properly.

Ensure that flow from EVA to APO is proper.

30.31

48.736.88

39.3 32.76224.17

21.33

10

20

30

40

50

60

70

80

90

100

2009 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010

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APO

Checklist:Checking flow of informationOnly one agreement per customerMaster Data

EVA

One of the most important factors in the process of improving delivery performance is to

have accurate information about the delivery performance of the parts. This is necessary

so that the problems and the potential for improvement can be spotted accurately

In all software tools certain factors have to be checked in order to get accurate data. They

are shown below:

P47LI

WAKS

Checklist:• Dates• Customer Master• Order

Checklist:• Price Data• Mast Checklist:

• Tolerance• Part no. established• Customer no. established• Packing index/ Warehouse Index (i.e. Lager index)

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Summary

Starting Situation

The information displayed in LIWAKS was not accurate. The delivery performance was poor and needed to be increased. A team was formed for LIWAKS implementation and increasing customer delivery performance using LIWAKS in which I joined as a member.

Observations

We started with 14 parts and found that few of them had no flow of information and some of them were giving 100% delivery performance in spite of failing. Almost all the parts schedule and confirmation in EVA were out of order. The tool was not implemented completely.

Steps Taken

We updated the master data in EVA, we found that old schedule agreements were open with junk orders so we cleaned them up and closed them. By triggering the I-DOC generated we managed to establish proper information flow for the parts.

Current Situation

All the parts have accurate flow. LIWAKS calculation has become more realistic. Now the focus is purely on improving the performance and making the concerned department (production, stores, quality etc.) aware of the effects on LIWAKS by their working. The Performance is about 50% now and the team is also looking forward to implement it to its Bangalore & Jaipur plant.

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Recommendations and Suggestions

Recommendations and Suggestions

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Keeping in view the study made of the Original Equipment delivery performance for the

pilot part nos. in LIWAKS, following recommendations and suggestions could be offered:

Recommendations for improving delivery performance

1. Correct the master data in EVA and APO

2. Maintain actual call offs dates in EVA and APO.

3. Ensure that flow from EVA to APO is proper.

4. Check whether the customer tolerance parameter for each customer is set

properly.

5. Check the flow in EVA is as per call offs and tolerance parameters

Recommendations for Sustaining improved delivery performance

1. Maintain Close Customer Coordination

2. Update EVA Data regularly

3. Get the customer requirements and plans in advance

Future Outlook

1. Checking delivery performance of suppliers and rate them accordingly:

We currently measure ourselves to customer, in same manner we can judge our

suppliers, and how are they performing with us

2. Customer interface to EVA:

Currently we are manually inputting the schedule given by customer, by using the

some electronic interface, Customer can directly input the schedule in EVA

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Glossary

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Abbreviations:

RBIN

Robert Bosch India

RBKR

Robert Bosch Korea

OE

Original Equipment

CRI

Common Rail Injector

CKD

Completely Knocked Down Components

VPZ

Planned Sales Volume

LIWAKS

Supply fulfillment /call-off pattern warning and monitoring system

EDL

Third party logistics provider (esp. Warehouse)

CWC

Central Warehouse Corporation

APO

Advanced Planning Optimizer tool (APO)

TEK

Technical Capacity

IPN

International Product Network

KWT

Customer scheduled date

AWT

BOSCH Confirmed delivery date

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Bibliography

BOSCH Intranet

BOSCH Annual Reports

BOSCH India Annual Reports

BOSCH Nashik CLP Database

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project report: improvement of oe customer delivery performance in liwaks

Documents