No 1

1000 Visionary SMEProgramme

August 2013CII

No 2

What is VLFM?

No 3

What is VLFM Programme

A project of bilateral importance as agreed by the Prime Ministers of Japan and India in December 2006 – support from JICA and NMCC

The first worldwide innovative management transformation programme created with guidance from Japanese experts

No 4

Unique Win-Win Partnership

• Confederation of Indian Industry

• Government of India • National Manufacturing

Competitiveness Council• Ministry of Human

Resource Development• Government of Japan

• Japan International Co operation Agency

• Indian Institute of Technology, Kanpur and Madras

• Indian Institute of Management, Calcutta

No 5

Visionary Leaders With Big M ConceptTechnical

ChangeGlobal

ChangeRegulatory

Change

Supply Chain

Manufacturing Process Change

Societal Change

Environmental Issue

R&D Product Design

ProductionAfter Sales

Service/ Warranty

Suppliers

Customer’s Apparent

and Latent Needs

Business Change

Source: Prof Shiba

No 6

VLFM SystemOpportunity C

CEOs of community members +

New Companies

Opportunity A: Senior Mangers from

Manufacturing Sector Opportunity B: Middle Management Level from Manufacturing

Sector

Opportunity D – SMEs – vendors

of OEMs &Tier 1 Companies

No 7

What Is Visionary SME?

No 8

VSME Is The ProgrammeFor Tier 1 & Tier 2s

Work TogetherTo Create Tier Relationship

Of Win-WinAnd Develop Visionary SME

No 9

3 Breakthrough In Visionary SMETo Create New Tier Relationship

‚ ƒ

�

Do &Demonstrate

Focus OnFlow

SystemApproach

No 10

Do & Demonstrate

Order Instruct Check

Do & Demonstrate

Tier 1

Tier 2

Tier 1

Tier 2

Self learning

Traditional Way

Achieve Target, Target…

Visionary SME WayWin-Win Relationship

No 11

Focus On Flow

QUALITY

COST

DELIVERY

COST

DELIVERY

QUALITY

Traditional Way

Total flowoptimisation

Flow

Functionalimprovement

Visionary SME Way

No 12

System Approach

Traditional Way

Focus on individual SME Focus on system

SME1

SME2

OEM

Tier 21

Tier 12

Tier 11

Tier 22

Tier 23

Visionary SME Way

No 13

How to start project?

No 14

Organisational Set-up

‚ ƒ

�CEO’s Initiative

Graduates of Opp. A(Minimum 2 person)

3-5 Tier 2s

No 15

CEO’s Initiative

1.VSME is the CEO’s Project

2.Spend 2 to 3 hrs per month to

review activities

3.Participate in Mod 1, Mod 2 and

all CEO’s Review

No 16

Tier 1 & Tier 2s = Project

OEM: Sponsorship

Tier 2 Plant(SME)

Tier 1 Plant

3-5 Tier 2s/ Project

Project AProject BProject C

No 17

Uniqueness Of Project Organisation

Tier 2Project-1

Tier 1CEO/COO

Tier 1Project

Plant HeadFunctional HeadTier 2 Support Engineer (full-time)

ICG

OwnerPlant Head

Tier 2Project-2

full-time

Tier 2Project-3

Graduates of Senior Managers’ Course (VLFM)

No 18

Participate CEO Seminar

Who: CEO + __

When: 20 September 2013

Where: Centre Of Excellence,

CII Mumbai

No 19

How 1 Year VSME CourseIs Organised?

- Road Map -

No 20

Learnnew tool

Practiceat model

line

Reviewby

CEO

Change Tier 1 First, Then Diffuse To Tier 2sTier 1

Implement first

Practiceat model

line

Tier 2Adopt same practice

Learnnew tool

Practiceat model

line

Reviewby

CEO

Practiceat model

line

2 days

1 month

1 day

1 monthDiffuse

No 21

One Year Journey: Batch 4

Implement Implement Implement Implement

Customer(Tier 1)

Supplier(Tier 2)

Step 0Mindset change

Step 1Design Flow

Step 2Control flow

Step 3Create

Tier relationship

Learn

Learn

Learn

Diffuse to Tier 2 by “Do & Demonstrate”

Step 0Mindset change

Step 1Design Flow

Step 2Control flow

Step 3Create

Tier relationship

Learn

ImplementLear

nImplement

Learn

ImplementLear

nImplement

Sept -2013CEO

Seminar

Sept -2014

CommunityActivities

for MutualSuccess

Learn

No 22

Tentative Schedule for Visionary SME Course, Batch 4

Module Day Therme Module Day Theme

Oct-13 Module 1 2 Breakthrough management

Nov-13 Module 2 2 Customer focus

Dec-13 Module 3 3 VMap 1 & 2

Jan-14 Module 4 1/Project

Feb-14 Module 5 2 Heijunka Module 3A 2 VMap 1 & 2

Mar-14 Module 6 1/Project

Apr-14 Module 7 2 Pull System Module 5A 2 Heijunka

May-14 Module 8 2 VMap 3 Module 8A 2 VMap 3

Jun-14 Module 9 2 Standardised Work Module 9A 2 Standardised Work

Jul-14 Module 10 1/Project

Aug-14 Module 11 1/Project

Sep-14 Module 12 1

<Note> *): Joint Workshop for Tier 1 & Tier 2

Community building *)

3S Map Practice

Tier 1 Tier 2

CEO Review-1 *)

CEO Review-2 *)

CEO Review- *)

Tier relationship *)

No 23

What Are The ResultsOf Visionary SME

For The Last 3 Years?

No 24

Visionary Leaders Developed

Tier 1

Tier 2

201120122013

Nos of plants participated(cumulative)

201120122013

Nos of Real Change Leader developed(cumulative)

201120122013

201120122013

Total: 288

No 25

Result-1: Delivery Performance

Delivery of Tier 1 to

OEM

Delivery ofTier 2 to Tier

1On-Time-In-Full (OTIF)

: 97-100%= No delay in deliveryof timing & quantity

OEMTier 1Tier 2

On-Time-In-Full (OTIF): 97-100%

= No delay in deliveryof timing & quantity

No 26

Result-2:Increase Of Productivity

Tier 1

Tier 2

0

0.5

1

1.5

2

2.5

3

3.5

4

Average2.2 times

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Average2.0 times

Highest:3.7timesHighest:4.1times

No 27

Result-3:Reduction Of Inventory (WIP)

Tier 1

Tier 2

58-62%85%

No 28

Result-4: Business Growth

May-12 May-130

0.020.040.06

0.080.1

0.12

0.14

0.0800000000000002

0.13

NSV (Mn$)

Tier 1

Tier 2

1.5 Times

No 29

What Will HappenAfter 1 Year VSME?

No 30

Expand & Sustain Activities

Create model line(Snowball)

VSME Course

Diffuse transformationto entire plant

Start

Community activities

for mutual success

Expand transformationto other plant

Type 1 Activities

Type 2 Activities

Type 3 Activities

Type 4 ActivitiesGoal

No 31

Create Tier Relationship of Win-Win

No 32

Create Tier Relationship of Win-Win

No 33

Maintain Tier RelationshipOf Win-Win

IsThe Basis Of

Business Growth & Profit For Both Customer & Supplier

No 34

Thank you!