vendor development system

KIRLOSKAR TOYODA TEXTILE MACHINERY PVT. LTD.Plot No. 10~13, Phase-II, Jigani Indl. Area, Anekal Taluk, Bangalore – 562 106

ISO 14001 Company

Water flowFLOW OF WATER

(1)

Flow through Canal - normally smooth flow ,No turbulenceWhen gates are opened, possibility of overflow exists

(2)

Flow through river : never quite smmoth. Will encounter obstacles.Will change path.

together we learn, work and contribute ….

KTTM Company ProfileKTTM Company Profile

Mr. Laxman Rao Kirloskar Mr. Sakichi Toyoda“Human Intellect and Individual ability gives us our means to direct our talents towards production work”

“Open your mind and look at the

great world outside”

The Spirit of Entrepreneurship and Innovation of

two great visionaries of different era and countries

resulted in the formation of

KTTM

The first Company of TOYOTA Group in Bangalore


Basic PolicyBasic Policy

“ “ Touch the Heart, People First ”Touch the Heart, People First ”


Operational PolicyOperational Policy

“ “ Speed up ! Speed up !

Change & Challenge !Change & Challenge !

Zero defect ! ”Zero defect ! ”


KTTM Company ProfileKTTM Company Profile1. Establishment 19951. Establishment 1995 　　 14th August 1995

2. 2. Starting Operation 1997 6th June 1997

3. 3. Share Capital Ratio Toyota Industries Corporation : 95.1%

Kirloskar Oil Engines : 3.8%

Kirloskar Brothers : 1.1%

4. 4. Range of Business Domestic sales of Ring Frame

Export of Ring Frame Parts

Painting Job Work

Auto Parts Manufacturing

Toyota Fork Lifts Sales and Service


KTTM Company ProfileKTTM Company Profile5

.Location 　 Jigani Industrial Area, Bangalore

district,

Karnataka State, India

6.

Land 132,054 m2

7.

Building 22,838 m2

8.

Numbers of Employees

(as of Dec 2005)

　　　　　　

Consolidated Manpower --- 815Division Super

visoryOP WT Total

Non Supervisory

Textile 84 52 81 217

SPM 50 29 129 208

LPM 22 12 47 81

DC 18 13 41 72

Production support Transmission 10 10

Corporate 29 29

Fork Lift Servicing 2 3 5

Average Age 27 years, including 4 Japanese staff

Apart from the above 173 Apprentices (Govt.Trainees) are undergoing training in different areas.



10.Turnover Growth & Plan

535 650987

1248 1375341

792

900900

0

500

1000

1500

2000

2500

'03-04 '04-05 '05-06 '06-07 '07-08

Textiles Transmission

In M

illi

on R

s

535

991

1779

2148 2275


Plant Layout

Total Built Area– 22838m2

Additional 18Acres of Land on West side available for Expansion

KTTM’S BUSINESS ACTIVITIES

RING SPINNING MACHINES &

COMPONENTS

CAPITAL GOODSTEXTILE MACHINERY

TRANSMISSION COMPONENTS FOR TOYOTA’S “IMV”

SURFACE TREATMENT FOR VOLVO, GE

AUTO PARTS

JOB WORK

FORK LIFT SERVICES

AFTER SALE SERVICE & GENUINE SPARE PARTS

FOR TOYOTA FORKLIFTS

NEW BUSINESS



Development of SystemWith

Vendors

Case Study: Transmission Project


TYPICAL MACHINED ALUMINUM DIE CAST PARTS

TYPICAL MACHINED CAST IRON PARTS

MACHINED FORGED STEEL & BAR PARTS

TOTAL OF 31 TYPE OF PARTS :161500 SETS / YEAR


Internal Auto Parts Manufacturing Facility

SMALL PARTS

MACHINING

DIE CASTING

ALUMINUM CASTING

MACHINING

Methodology of Vendor Development



Grand Schedule for Auto Parts Project

Vendor Control

This is a Master Schedule which integratesCustomer Schedule--- n+2 monthsKTTM Schedule--- nth monthVendor Schedule--- n-2 monthThis ensures “ON TIME PROJECT EXECUTION”


Support to the Vendors

We believe in “Mutually Beneficial Supplier Relationships”

We work with all our suppliers for

1. System Development2. Process Stabilization3. Problem Solving4. Reducing rejections


Sumimetal Malaysia


Audit Check Sheet

Quality

Production

Delivery

Pre Production

Maintenance

Systems

Self Assessm

ent

KT

TM

A’sm

ent

C’m

easure reply

Confirm

C’m

easureOverall Criteria for Selection162~180– Excellent & Accepted131~161—Accepted100~130—Conditional Accepted99 or less – Not Accepted(Combined score of all individual element)


Quality

Production

Pre Production

Delivery

Maintenance

Guidelines for Self assessment and KTTM assessment for Vendor Selection

This is done on1~4 Scale forindividual elementsWhere 1~ Least4~Excellent

Check points

4 3 2 1

Quality Development Plan


Method

Man

Facility

Inspection Standard

Inspection Parameters

ReleaseConfirm Insp.

StdRecord

Work Sequence Sheet

Skill Level

Manpower

Necessary facility

InspectionArea


Confirmation of Logistics

Method

Man

Facility


Traceability

Production records

Logisticsrecords

Click for Example

Manual TransmissionExported to 8 countries161500 units/annum



Audit System

Vendor Audits


Audit Report

VENDOR AUDIT REPORT

Vendors Performance Monitoring Quality Mallya

0.006

0.650.59

0 0 0 0 0

0.10.04

0.1

0.0

0.2

0.4

0.6

0.8

1.0

1.2

Rej

ecti

on

%

Rejection

TargetEmbars

0.0

0.2

0.4

0.6

0.8

1.0

1.2

Rej

ecti

on

%

Rejection

Target

Dimo

2.03

0.82

1.94

2.52.51

1.32

2.231.8

2.2

1.72

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Rej

ecti

on

%

RejectionTarget

Hightemp

2.80

2.31

3.323.00

2.08

3.053.30 3.10

2.40

0.360.27

0.00.5

1.01.5

2.02.5

3.03.5

Rej

ecti

on

%

Rejection

Target

Machine components

0.0

0.2

0.4

0.6

0.8

1.0

1.2

Rej

ecti

on

%

Rejection

Target

Megamiles

0.0

0.2

0.4

0.6

0.8

1.0

1.2

Rej

ecti

on

%

Rejection

Target

Drawing,Cutting

AluminumDie Casting

Machining

Plating

Heat Treatment

Machining

Vendors Performance Monitoring

Delivery

Since we work on KANBAN ,Delivery failures are NEGLIGIBLE

99.9 99.0 99.9 99.4 99.2100100100100

0

20

40

60

80

100

120

Au

g'0

5

Sep

'05

Oct

'05

No

v'05

Dec

'05

W1-

Jan

'06

W2-

Jan

'06

W3-

Jan

'06

W4-

Jan

'06

% A

dh

eren

ce


Risk Management1. KTTM will manage its supply chain to ensure supply to customer without failure at all time.2. Develop alternate backup plan.3. Test and keep the backup option ready in case of emergency.

Forecast incidence

Estimated risk

Transport

Counter measure

Truck strike 1. Pickup information in advance & deliver

2. Pickup through alternate mode.

Inter state strike 1. Ships to be diverted to nearest state

2. Transport through undisturbed state.

Port strike 1. Ships to be diverted to other port

Ship strike 1. Alternate shipping liner

Cyclone 1. Ships to be diverted to other ports.

Production

Dispatch

Machine failure 1. Keep Maximum 5 days stock to manage machine breakdown up to 5 days

Quality problem 1. Frequent Quality audits on quality system, and implementation of countermeasure

Once/yr<1wk

Once/3yr>1wk

Once/10yr


Risk Management

Raw material supplier

Shipping linerChennai port &

transport

KTTMRaw material

stock FG stock

Castings-China

Forgings-Japan

53

38

868

15 days stock 15 days stock 30 days stock 8 days stock

Problem location

Stock (days) Backup plan Judgment

Casting68 Backup by Japanese supplier

Forgings

Ship 53 Alternate shipping liner

Chennai port 15 Alternate port

Transport 30 Alternate route / transport

KTTM 8 Backup by Japanese supplier

1095

137

26 30 12 5 0 10 10 0 5 17 0 4

3067507055

51

00

8 73

36

6

11

85

27

99

51

9 11

94

08

13

25

48

15

30

90

16

69

62

16

60

26

20

90

60

21

67

74

20

63

25

23

34

84

20

09

57

20

09

16

17

25

19 20

26

62

22

78

49

63

95

3

200

2030100

0

200

400

600

800

1000

1200

04-Jul

Aug Sep Oct Nov Dec 05-Jan

Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan

0

50000

100000

150000

200000

250000PPM

Parts Supplied

CustomerTargetInternal Target

Performance Measurement at Customer

Thanks to Our Partners

AWARDS AND ACHIEVEMENTS

Q

C

D

ZERO PPMZERO PPM

BEST FOUNDRYBEST FOUNDRY

TKML

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