Sharing Best Practices PMMAI – 25 th July 2014 Ahmedabad

1. Sharing Best Practices PMMAI – 25th July 2014 Ahmedabad

2. What do we think, when we hear Indian Quality? Aesthetics Reliability Long Lasting Performance Technology Value addition? Capability!!

3. Why should I do business with you?

4. Current State to Future StatePresent Assessment 3-year Objective (2016) Improvements & Innovations initiated at FMI Improvements & Innovations at Strategic partners with FMI Manufacturing Capacity 1,500 machines per annum Cost reduction & product innovation Driven by FMI for self & suppliers Standard operating process (SOP) Preparation, validation & implementation by FMI Quality, Reliability & Aesthetic improvement FMI driven improvement initiatives Initiated DMAIC for improvements Territories Served India, SAARC, Middle East, Africa & USA Manufacturing Capacity 2,500 machines per annum Cost reduction & product innovation Self Initiatives from Strategic partners Vendors based adjacent/near to FMI Standard operating process (SOP) Supplier driven SOP Quality, Reliability & Aesthetic improvement Zero defect parts & improvement plans by suppliers Additional Territories Served East Europe, Latin America, South East Asia

5. Process Improvement . . . . A Journey Get Fast! . . .or Go Broke!

6. Process Improvement House

7. Organization Concerns • House Keeping not up to Expectations. • Poor Safety. • Gangways cramped with machines. • Material storage issues. • Stock Discrepancy and material damage issues. • Lack of Space. • Material stored directly on floor and at undefined areas. • Raw material yard also not organized.

8. Organization Concerns • Higher lead times. • Lack of ownerships. • Lack of Self initiating. • Slow rate of Productivity of machines. • Fire fighting in all areas. • Inward Quality issues. • Plug & Produce index not improving.

9. Goal – Operational Excellence Path – Best Practices

10. Modern Manufacturing Facility

11. Bring Customers closer – they are the best critics

12. 5S • Project: “PARIVARTAN” (Change) • Objective: To Make FMIPL a World Class Organization. • Launched On: 17th January 2012. • Sustained From : 31st December 2012. • Progress Update : • 1S Initiated from 18th January till 31st March 2012. • 2S Initiated from 18th April till 31st August 2012. • 3S Launched on 2nd October 2012 & in practice. • 4S FMIPL Company Standards Released on 31st Dec. 2012. • 5S In practice and self Sustaining mode from 31st Dec. 2012.

13. Parivartan - 5S Initiative Launched on 17th Jan 12

14. BEFORE AFTER 5S Parivartan

15. BEFORE AFTER 5S Parivartan

16. BEFORE AFTER 5S Parivartan

17. BEFORE AFTER 5S Parivartan Life with “3S”

18. BEFORE AFTER 5S Parivartan Life with “3S”

19. AFTER BEFORE Material Handling - Improvements

20. AFTER BEFORE 5S Parivartan Material Handling - Improvements

21. BEFORE AFTER 5S Parivartan All fixtures and spanners arranged in master base O-80 to 250

22. AFTER BEFORE 5S Parivartan Fabrication Kit Movement Trolley

23. 5S Parivartan Mega Cleaning

24. 5S Parivartan Mega Cleaning

25. 5S Parivartan Money Saved Space saved

26. Lost Time Injury Incidence Rate • Good • 28

27. 6σ • Project: SIX SIGMA • Objective: To Make FMIPL a World Class Organization through process driven approach. • Launched On: 5th April 2013. • Progress Update SIX SIGMA: • First batch of Green Belt Training covered in 3 sessions for selected 26 Participants. • DMAIC Approach training as per Six Sigma methodology imparted. • 8 Improvements projects identified and these are in Purchase / Assembly / Quality with a aim of improvement in processes of Procurement / Quality / Manufacturing & Productivity. • Subsequently based on the progress and implementation of these projects the Black Belt Training would be imparted and thereafter the improvement projects would be worked upon. • 29

28. 6σ Project Savings Expected V/s Actual Savings Achieved • 30

29. Value Engineering Project MT / Nova 110 / Hydron100 = 94 Machines / Q3+Q4--2014. MT / Nova / Hydron 150 = 135 Machines / Q3+Q4--2014. Total Savings / Year = 229 * 8560 = Rs. 19.6 Lacs VE • For MT 150 Gates & Guarding – Value Engineering of Raw material, variety reduction, Assembly Time Reduction Leading to cost saving. • 31

30. TPM • Project : TPM • Objective: To Make FMIPL a World Class Organization through process driven approach. • Launched On: 5th April 2013. • Progress Update TPM: • First batch of TPM Training covered in 2 sessions for selected 15 Participants. • The Team comprises of Cell Supervisor/Machine Operator/Mechanical & Electrical Fitter and maintenance manager. • 3 Machines and 1 Utility machine selected for the first prototype approach. • Changed the daily method of logging of stoppages on these machines and revised the breakdown maintenance logs. • Initiated the red tagging of the machine and the as per the training of 16 types of losses the tags affixed by the team. • 32

31. Quality

32. Accreditations • ISO 9001:2008 • ISO 14001:2004 Adhering to World Class Quality Standards • Export House StatusServing over 40 Countries across the World including USA • 34

33. Where are we? We are not meeting our commitments to Customers We need... deep thinking creativity determination and resolve… To go from… VALUE CRISIS to VALUE CREATION

34. Our Role, My Role? Make it happen! We are all an integral part of the journey!

36. WE CAN, WE WILL

37. Questions?

38. Thank You