L.G. PRODUCTION MGT PPT
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Transcript of L.G. PRODUCTION MGT PPT
INTRODUCTION The company was originally established in 1958 as
Goldstar, producing radios, TVs, refrigerators, washing machines, and air conditioners.
The L.G group was a merger of two Korean companies Lucky and Goldstar.
Is the second largest producer of television and third largest producer of mobile phones.
L.G. INDIA LG Electronics India Pvt. Ltd., a wholly owned
subsidiary of LG Electronics, South Korea was established in January, 1997 after clearance from the Foreign Investment Promotion Board (FIPB).
LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500 Crores
In 2004, LGEIL also up its second Greenfield manufacturing unit in Pune, Maharashtra
LG plans to set up Rs 500-cr unit in South
BUISINESS DIVISIONSL.G. GROUP
L.G. ELECTRONICS
MOBILE COMMUNICATIONS
DIGITAL DISPLAY
DIGITAL MEDIA
DIGITAL APPLIANCES
L.G.CHEM
INFORMATION AND ELECTRONIC MATERIALS
CHEMICAL AND POLYMERS
LG SOLAR ENERGY
INDUSTRIAL MATERIALS
L.G.TELECOM
MARKET SEGMENTATION Demographic
- Income- -Occupation° Geographic
-Tier 1 cities
- Tier 2 citieso Psychographic
-Life style
-Personalityo Behavioural
-Value
-Benifit
S.W.O.T. ANALYSIS Strengths:- Market leader in home appliances.
Has got manufacturing unit in tax incentive .
Wide range of products to serve all categories.
Widest distribution network in the industry(47 barnches,10000 trade partners).
Good after sales service offered.
ANNUAL PRODUCTION GRAPH
ANNUAL PRODUCTION GRAPH
WEAKNESSES. Samsung being its competitor provides similar
products.
Consumers compare L.G with Samsung its Korean rival not with other global companies.
Lack of expert operators for complex machines due to illiteracy and lack of training in India.
Fast growth of the home appliances market
Shifting to rural areas
Thus maintaining control over the market and the highest share in home appliances market
OPPORTUNITIES
THREATS Close competitors like Samsung are compared to it.
Price war with Samsung.
Competition from Indian brand and other foreign brands.
MAJOR LANDMARKS OF L.G. INDIA. Feb’97 : Established LGEIL May’97 : Launched CTV, WM, REF. Jan’98 : Launched AC Apr’98 : Inaugurated Noida Plant-CTV, AC, WM May’01: Started Monitor Prod. … Jan’04 : Started PC Production Oct’04 : Inaugurated Pune Plant-CTV, REF Apr’05 : Started GSM Production (P) Jan’07 : Started TFT Monitor production Apr’07 : 5 Star Energy Rating for products
GROWTH PLANNING Growth strategy “fast innovation fast growth” The new plant which is under development aims to
reach a manpower base of 1500 people and an investment of Rs 300 crore till 2010.
o Growth strategies aimed at gaining more customers from the 1.1 billion prospective customers of India.
o Currently India is equipped with a production line to manufacture 6 lakh T.V sets and 1 million refriegerators per year.
COST-CUTTING CASE STUDIES
P.O.M. decisions
ENERGY CONSUMTION PROCESS
ENERGYELECTRICITYRUNNING OF ALL UTILITY EQUIPMENT
RUNNING OF PRODUCTION EQUPMENT
GENERAL LIGHTING
FUELFOR PRODUCING ELECTRICITY THROUGH D.G.
FOR HEATING AND PAINT SHOP BURNER
FOR HOT WATER GENERATION
COMPRESSED AIRFOR DRYING OPERATIONS
FOR BLOWING OPERATIONS
FOR COOLING OPERATIONS
FOR RUNNIG OF TOOLS AND EQUIPMENT
WATER
SHELL WASHING MACHINE
Before Status :To dry the Components in Shell
washing machine earlier 60 KW Electrical heater were
used .Running Cost / Day:Appx Rs 4,000
Running Cost/Month: Appx. Rs 1,04,000
After Status:Two Propane fired Burner Has been Installed to Serve
the same Purpose
Running Cost/Day: Appx. Rs.1,675
Investment :Appx. Rs. 6,00,000
Running Cost / Month:Appx. Rs. 43,550
Savings / Month:Appx. Rs.60,450
PICKLING MACHINE
Before Status :To dry the Components in Shell washing
machine earlier 70 KW Electrical heater were used .
Running Cost / Day:Appx Rs 4,620
Running Cost/Month: Appx. Rs 1,20,120
After Status:Two Propane fired Burner Has been Installed to Serve
the same Purpose
Running Cost/Day: Appx. Rs.1,800
Investment :Appx. Rs. 6,00,000
Running Cost / Month:Appx. Rs. 46,800
Savings / Month:Appx. Rs.75,000
PAINT SHOP BURNER CHANGEOVER
Before Status :To dry the Components in Paint Shop oven Diesel Fired Burner was Used .
Running Cost / Day:Appx Rs 44,640
Running Cost/Month: Appx. Rs 1,249,920
After Status:Two Propane fired Burner Has been Installed to Serve the same
Purpose
Running Cost/Day: Appx. Rs.31,250
Investment :Appx. Rs. 1,000,000
Running Cost / Month:Appx. Rs. 875,000
Savings / Month:Appx. Rs.375,000
INSTALLATION OF BLOWER ON PICKLING MACHINE
Before Status : Earlier Compressed Air were UsedTo dry
the Components in Pickling Machine.
Running Cost / Day:Appx Rs 2,000
Running Cost/Month: Appx. Rs 52,000
After Status:Now One Blower of 10 KW is Installed to serve the same purpose.
Running Cost/Day: Appx. Rs.655
Investment :Appx. Rs. 200,000
Running Cost / Month:Appx. Rs. 17,000
Savings / Month:Appx. Rs.35,000
CASE FOAMING PRE HEATING CHAMBER
Before Status : To Pre Heat the Case of Ref. Earlier 100
KW heater were used.
Running Cost / Day:Appx Rs 6,000
Running Cost/Month: Appx. Rs 156,000
After Status:Now Propane fired Burner is doing the same Job.
Running Cost/Day: Appx. Rs.2150
Investment :Appx. Rs. 650,000
Running Cost / Month:Appx. Rs. 55,000
Savings / Month:Appx. Rs.100,000
Before Status : To Achieve the Humidity in Part Reliability
Building we were using 18 KW Heater
Running Cost / Day:Appx Rs 2,590
Running Cost/Month: Appx. Rs 77,760
After Status:Now we provided high speed Atomizer to serve the same
purpose with only
0.4 KW motor
Running Cost/Day: Appx. Rs.57
Investment :Appx. Rs. 45,000
Running Cost / Month:Appx. Rs. 1720
Savings / Month:Appx. Rs.75,000
Part Reliability Testing of Sync.Motor, Louver,Cam
& Link done with product . 2 Nos Product run
continuously for 15 days for testing of one
lotPower Saving , Less Space Required .No of
Samples
can be increased from 2 to 5
Test Jig made in which Parts Can be Tested separately from the product with same assy condition .
After Benefits
Test Condition : Assemble the cam ,Link with Machines for 15 Days Continuous Running
Innovation : Test the Cam , Link & Syn Motor with Test Jig with same Load(160Gf)
•Machine Run Time -15days
•Total Unit per days = 2x2x24 = 96units
•Total Cost ( per Unit ) = Rs 6
•Savings per Month = 15x96x6x2 = Rs 17280
•avings for one year = 8640x12 = Rs 2,07,360
ENERGY SAVER FOR LIGHTING LOAD
Energy Saver installed in Sub station-4 on 7thOct 2007 Energy Saver installed in Sub station-1 on 21stOct 2007 Energy Saver installed in Sub station-2 on 10thNov 2007
INNOVATION IDEA Extensive usage of Transvector
Nozzlesat C-Block washing, Pickling ,Part Washing and Shell Washing Machine
Replace compressed air system by Electrically Driven Blowers for homogenization Of Chemical in Degreasing
Installation of pressure boosters for local need.
MHL REPLACEMENT WITH T5 ENERGY EFFICIENT LIGHTSS.N PARAMETER T5 LAMP BASED
SYSTEMSREMARKS
1 Lumen Efficacy (Lumen / Watt Output)
104 Lumen per Wat WattThis means , T5 lamps consume less power for same light output2Life
2 Life of the Lamp 18,000 burning hours i.e 750 DaysT5
DaysT5 Lamps have longer life , hence less expenditure in maintenance3Operating
3 Operating Voltage Range
130-280 VoltsT5
4 Line Current Reduced to 1/3rd approximatelyDue
5 Power Factor 0.90 & above
TECHNIQUES USED
Before Status :To Cool Rotor from 3000C to 900C there are 16 open pipes of Compressed Air and one
number of 18 KW A.C. is being used for cooling.Running Cost /
Day:Appx Rs 2,990
Running Cost/Month: Appx. Rs 77,740
After Status:Three Cooling Nozzles Has been installed which are
Serving the Same Purpose ,by this nozzle we will get the Temp. of -50C.
Running Cost/Day: Appx. Rs.120
Investment :Appx. Rs. 60,000
Running Cost / Month:Appx. Rs. 3120
Savings / Month:Appx. Rs.75,000
DEGREASING MACHINE
Before Status:The chemical mixture was being agitated by using
compressed air at 7 Kg/cm2. This way the chemical would get homoginised.
Running Cost / Day:Appx Rs 3000 Rs
(10 Hrs x cost of air)
Degreasing Machine
Running Cost/Month: Appx 78,000 Rs.
After Status: A 3 HP motor with a blower unit is used to deliver high volume airfor the same purpose of
homogisation by agitating the chemical mix
Running Cost /Day: Rs 110
Investment : Rs 90,000Savings / Month: Rs 75,000
WI-FI AT PLANT
LGEIL deployed a Wi-Fi solution at its manufacturing
plant in order to improve employee collaboration, allow better decision-making, and help personnel meet deadlines. The company Wi-Fi-enabled all 500 notebooks at the plant by adding more access points.
The company used the Cisco Aironet 1200 Series AP products to set up the 802.11b Wi-Fi network.
Benefits: 500 users are already on the Wi-Fi network. The flow of business information has improved, and has consequently improved co-ordination. The office area looks cleaner with fewer cables, and network maintenance costs have dropped.
QUALITY STANDARD
Control decisions.
SIX SIGMA Six Sigma seeks to improve the quality
of process outputs in manufacturing and buisness processes
Uses a set of quality management methods, including statistical methods
Creates a special infrastructure of people within the organization ("Black Belts", "Green Belts", etc.) who are experts in these methods
SIX SIGMA(SEVERAL KEY ROLES FOR ITS SUCCESSFUL IMPLEMENTATION)
Executive Leadership. Champions. Master Black Belts. Black Belts . Green Belts. Yellow Belts.
MAKING SIX SIGMA A COMMON LANGUAGE
CPQ(CUSTOMER PERCEPTION QUALITY) Perceive and Improve the Customer
Satisfaction for Product Quality through survey
Customer Survey from 10 Major cities Survey by QA based on :1. Random sample2. Questionnaire Calculation of C.P.Q.Index Feedback to other deptts. Monthly review with Top management
C.P.Q. TABLE
2004 1 1 1 1 1 1
2005 2 1 2 1 1 2
2006 5 5 5 2 4 -
Items REF A.C WM MWO CTV GSM
1 2 3 4 5
POOR FAIR GOOD V.GOOD EXCELL
I.S.O. CERTIFICATES
I.S.O. 14001I.S.O.14001 / OHSAS 18001
I.S.O CERTIFICATES
I.S.O.14001 / OHSAS 18001
OHSAS 18001
I.S.O./OHSAS ISO 14001 is a standard developed by
the International Organization for Standardization (ISO)
It establishes environmental management system (EMS) requirements for organizations of all types and sizes.
OHSAS (Occupational Health and Safety Assessment Series) 18001 is a standard for implementing a safety management system (SMS).
STRATEGIC DECISIONS
STRATEGIC DECISIONS Local and efficient manufacturing to reduce the cost
R&D potential
Regional channel and wide distribution network
Product localization
Innovative marketing strategy
LG R AND D To further enhance competencies in production
technology, the institute conducts active research and develops core manufacturing solutions, including:
PHOTO LITHOGRAPHY. THIN-FILM TECHNOLOGY. LASER APPLIED PROCESSING. SYSTEM ENGINEERING. ENGINEERING SOLUTIONS. APPEARANCE TECHNOLOGY.
THANK-YOU!!!PAWAN MULANI-46
YOGESH NARANG-
ROHIT DIALANI-
HARSH MIRPURI-
NILKESH-
RAHUL MIRANI-