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1000 Visionary SME Programme

1000 Visionary SME Programme. August 2013 CII. What is VLFM ?. 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

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1000 Visionary SME Programme

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  1. 1000 Visionary SMEProgramme August 2013 CII

  2. What is VLFM?

  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

  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

  5. After Sales Service/ Warranty Production Product Design R&D Visionary Leaders With Big M Concept Technical Change Global Change Regulatory Change Customer’s Apparent and Latent Needs Supply Chain Business Change Suppliers Societal Change Manufacturing Process Change Environmental Issue Source: Prof Shiba

  6. VLFM System Opportunity 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

  7. What Is Visionary SME?

  8. VSME Is The ProgrammeFor Tier 1 & Tier 2sWork TogetherTo Create Tier RelationshipOf Win-WinAnd Develop Visionary SME

  9. 3 Breakthrough In Visionary SMETo Create New Tier Relationship Do & Demonstrate  ‚ ƒ Focus On Flow System Approach

  10. Do & Demonstrate Traditional Way Visionary SME Way Achieve Target, Target… Win-Win Relationship Tier 1 • Order • Instruct • Check Tier 2 Self learning Tier 2 Do & Demonstrate Tier 1

  11. Focus On Flow Traditional Way Visionary SME Way Functional improvement Total flowoptimisation Q U A L I T Y C O S T D E L I V E R Y Q U A L I T Y C O S T D E L I V E R Y Flow

  12. System Approach Traditional Way Visionary SME Way Focus on individual SME Focus on system OEM Tier 11 Tier 21 Tier 12 Tier 22 Tier 23

  13. How to start project?

  14. Organisational Set-up CEO’s Initiative  ‚ ƒ Graduates of Opp. A (Minimum 2 person) 3-5 Tier 2s

  15. CEO’s Initiative VSME is the CEO’s Project Spend 2 to 3 hrs per month to review activities Participate in Mod 1, Mod 2 and all CEO’s Review

  16. Tier 1 & Tier 2s = Project OEM: Sponsorship Project A Project B Project C Tier 1 Plant Tier 2 Plant (SME) 3-5 Tier 2s / Project

  17. Uniqueness Of Project Organisation Graduates of Senior Managers’ Course (VLFM) Tier 1 CEO/COO ICG Plant Head Functional Head Tier 2 Support Engineer (full-time) Tier 1 Project full-time Tier 2 Project-1 Tier 2 Project-2 Owner Plant Head Tier 2 Project-3

  18. Participate CEO Seminar Who: CEO + __ When: 20 September 2013 Where: Centre Of Excellence, CII Mumbai

  19. How 1 Year VSME CourseIs Organised?- Road Map -

  20. Change Tier 1 First, Then Diffuse To Tier 2s Tier 1 Implement first Tier 2 Adopt same practice 2 days Learn new tool Learn new tool 1 month Diffuse Practice at model line Practice at model line Practice at model line Practice at model line Reviewby CEO 1 month Reviewby CEO 1 day

  21. One Year Journey: Batch 4 Sept -2013 Sept -2014 CEO Seminar Step 0 Mindset change Step 1 Design Flow Step 2 Control flow Step 3 Create Tier relationship Customer (Tier 1) Community Activities for Mutual Success Learn Implement Learn Implement Learn Implement Learn Implement Diffuse to Tier 2 by “Do & Demonstrate” Supplier (Tier 2) Step 0 Mindset change Step 1 Design Flow Step 2 Control flow Step 3 CreateTier relationship Learn Implement Learn Implement Learn Implement Learn Implement

  22. Tentative Schedule for Visionary SME Course, Batch 4

  23. What Are The ResultsOf Visionary SMEFor The Last 3 Years?

  24. Visionary Leaders Developed Nos of plants participated (cumulative) Nos of Real Change Leader developed (cumulative) Tier 1 Total: 288 2011 2012 2013 2011 2012 2013 Tier 2 2011 2012 2013 2011 2012 2013

  25. Result-1: Delivery Performance Tier 2 OEM Tier 1 Delivery of Tier 2 to Tier 1 Delivery of Tier 1 to OEM On-Time-In-Full (OTIF) : 97-100% = No delay in delivery of timing & quantity On-Time-In-Full (OTIF) : 97-100% = No delay in delivery of timing & quantity

  26. Result-2:Increase Of Productivity Tier 1 Tier 2 Highest:4.1times Highest:3.7times Average 2.2 times Average 2.0 times

  27. Result-3:Reduction Of Inventory (WIP) Tier 1 Tier 2 • 58-62% 85%

  28. Result-4: Business Growth Tier 2 Tier 1 1.5 Times NSV (Mn$)

  29. What Will HappenAfter 1 Year VSME?

  30. Expand & Sustain Activities Type 2 Activities Diffuse transformation to entire plant Start Goal Type 1 Activities Type 4 Activities Create model line (Snowball) VSME Course Community activitiesfor mutual success Type 3 Activities Expand transformation to other plant

  31. Create Tier Relationship of Win-Win

  32. Create Tier Relationship of Win-Win

  33. Maintain Tier RelationshipOf Win-WinIsThe Basis OfBusiness Growth & Profit For Both Customer & Supplier

  34. Thank you!

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