No Visionary SME Programme August 2013 CII

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

No 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

No 7 What Is Visionary SME?

No 8 VSME Is The Programme For Tier 1 & Tier 2s Work Together To Create Tier Relationship Of Win-Win And Develop Visionary SME

No 9 3 Breakthrough In Visionary SME To Create New Tier Relationship ‚   Do & Demonstrate Focus On Flow System Approach

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 Way Win-Win Relationship

No 11 Focus On Flow QUALITYQUALITY COSTCOST DELIVERYDELIVERY COSTCOST DELIVERYDELIVERY QUALITYQUALITY Traditional Way Total flow optimisation Flow Functional improvement Visionary SME Way

No 12 System Approach Traditional Way Focus on individual SMEFocus on system OEM Tier 2 1 Tier 1 2 Tier 1 1 Tier 2 2 Tier 2 3 Visionary SME Way

No 13 How to start project?

No 14 Organisational Set-up ‚   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 A Project BProject C

No 17 Uniqueness Of Project Organisation Tier 2 Project-1 Tier 1 CEO/COO Tier 1 Project Plant Head Functional Head Tier 2 Support Engineer (full-time) ICG Owner Plant Head Tier 2 Project-2 full-time Tier 2 Project-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 Course Is Organised? - Road Map -

No 20 Learn new tool Practice at model line Review by CEO Change Tier 1 First, Then Diffuse To Tier 2s Tier 1 Implement first Practice at model line Tier 2 Adopt same practice Learn new tool Practice at model line Review by CEO Practice at model line 2 days 1 month 1 day 1 month Diffuse

No 21 One Year Journey: Batch 4 Implement Customer (Tier 1) Supplier (Tier 2) Step 0 Mindset change Step 1 Design Flow Step 2 Control flow Step 3 Create Tier relationship Learn Diffuse to Tier 2 by “Do & Demonstrate” Step 0 Mindset change Step 1 Design Flow Step 2 Control flow Step 3 Create Tier relationship LearnImplementLearnImplementLearnImplementLearnImplement Sept CEO Seminar Sept Community Activities for Mutual Success Learn

No 22 Tentative Schedule for Visionary SME Course, Batch 4

No 23 What Are The Results Of Visionary SME For The Last 3 Years?

No 24 Visionary Leaders Developed Tier 1 Tier Nos of plants participated (cumulative) Nos of Real Change Leader developed (cumulative) Total: 288

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

No 26 Result-2: Increase Of Productivity Tier 1 Tier 2 Average 2.2 times Average 2.0 times Highest:3.7timesHighest:4.1times

No 27 Result-3: Reduction Of Inventory (WIP) Tier 1 Tier % 85%

No 28 Result-4: Business Growth NSV (Mn$) Tier 1Tier Times

No 29 What Will Happen After 1 Year VSME?

No 30 Expand & Sustain Activities Create model line (Snowball) VSME Course Diffuse transformation to entire plant Start Community activities for mutual success Expand transformation to other plant Type 1 Activities Type 2 Activities Type 3 Activities Type 4 Activities Goal

No 31 Create Tier Relationship of Win-Win

No 32 Create Tier Relationship of Win-Win

No 33 Maintain Tier Relationship Of Win-Win Is The Basis Of Business Growth & Profit For Both Customer & Supplier

No 34 Thank you!