Ensure the synchronised supply of material to assembly line

Abstract

In the ambient of increased competition coupled with slow market growth, it has become imperative for us to bring down our costs in order to remain profitable. The supply of tractors is based on market demand projections. At times of sluggish market growth, this leads to undue accumulation of inventories at various stages, which adversely affect the costs and profitability. In view of the above, project in the area of synchronized supply of material, was undertaken. Subsequently the implementation will result in the desired cut in inventories. The potential available for improving existing system was felt, for large organisation like M and M(FES). Top management has devised policies and procedures to reap the benefits. M and M (FES) is the leader in tractor field, for last over 15 years. Co. currently holds 27.3%market share in domestic market. In the changing scenario of liberalization, many new models and range of tractors and implements are introduced. Most of customers are demanding quick response and high quality at low cost for new products. Mapping of all new practices, procedures, systems etc.; within the required time frame,(w.r.t. the Co.'s overall plan and customer requirement), is becoming very difficult. Hence there is need to manage multi projects (such as new practices and systems in place) and optimize the lead time. The scope of the project has been defined as evolving a " pull system" from assembly line. This will give us the capability to cater to very small qty. requirements of the internal customer (i.e. our assly. line). For this it is essential to establish a smooth flow of material (without interruption / accumulation at intermediate stages). In pull system customer triggers the previous activity - in turn it triggers its previous activity it's a chain reaction. By this it is ensured that the supply is done as per customer's (assly. line) requirement. As a 1st step towards evolving the new system, the existing process was studied. The customer demand pattern was also considered. The new concept was jointly evolved and further refined with the active involvement of concerned colleagues and functional experts from supply module, assly. line and MPS implementation team members. For optimum stock levels, Kanban is worked out for Diff. Case part supply. The triggering mechanism and visual control system is for both bearings and Diff. Case supply. In order to achieve logical flow material handling is also seen. The various quantitative and qualitative benefits of this system are worked out. The essential requirements for this system to work smoothly were identified. The work of implementation has been initiated and will be continued. Such small scale projects (like mine), if extended to large scale, can help Co. to face the challenges of the millenium confidently.