Spicer Jodalli’s ASME: A Journey to Create
Win-Win Relationship with Suppliers
Suppliers are an important stakeholder in business and the caliber of an
organization can be gauged by the type of suppliers it has. The auto and auto
component business is characterized by this factor more than in any other
industry. Therefore, the auto component industries always try to build supplier
quality in various ways, especially in a country like India. Spicer India embarked
on this journey of bringing itself and its Tier 2 Suppliers together to improve
products and services offered to their Customers.
The ASME (Anand Small & Medium Enterprise) initiative takes the
transformation process downward along the value chain, to Tier 1 and Tier
2 Suppliers. This initiative got conceptualized during the National Program
of VLFM (Visionary Leaders for Manufacturing). The uniqueness of ASME
program is slightly different as it focuses on building a Win-Win relationship
with supplier partners rather than preaching/instructing. The methodology
adopts a distinctive “Do & Demonstrate” concept which breaks the barrier
between Tier1 and Tier 2 suppliers. We strive to show the way through various
Lean Tools and bring about the mindset change amongst suppliers towards
identifying and eliminating wastes and thereby, optimizing their Operational
Efficiency.
A peep into the past of Spicer Jodalli’s Supplier Performance before 2012
was really a matter of major concern. The Supplier base was having Poor
Schedule Adherence, (@77%) and High PPM (@4201) which resulted in
high OEE Losses (@ 5.2%) and Poor on Time Delivery to Customer. With
the traditional approach of “Customer Supplier Relationship” in practice, the
Spicer India Jodalli Team was struggling hard to overcome this problem.
OBSERVATION PERFORMANCE GAP
A Journey to Create Win-Win Relationship with Suppliers
DANA
143
The Spicer & Anand Management initiated a drive to handhold to improve
Supplier Relationship with “Give & Give” approach.
Spicer Jodalli team’s experience in implementing Waste Management
Tools through DOS (Dana Operating System) & ASME’s concepts/philosophy,
helped in creating Win-Win relationships with suppliers. Based on the location’s
specific needs, 9 key vendors were identified for this transformation journey
in September 2012. Spicer Jodalli team supported suppliers to practice and
implement these tools on shop floor.
144
Spicer Jodalli
A Journey to Create Win-Win Relationship with Suppliers
145
TESTING OF REMEDIES RESULTS AFTER ACTIONS
VENDOR WINDOW TIME ADHERENCE
97%
95%–
90%–
85%–
80%–
88%
87%
85%
93%
85% 85%
84%
MONTHWISE OEE LOSSES
6%–
95%
5%–
95%
4%–
4.7%
5.0%
3%–
87%
85.5%
4.3%
2.8%
2.4%
2%–
2.2%
2.5% 2.0%
2.2%
1%–
1.2%
1.0%
0%–
Ja
n13
Fe
b13
M
ar
-1
Ap 3
r-1
M 3
ay
-1
3
Ju
n13
Ju
l-1
Au 3
g1
Se 3
p13
Oc
t-1
No 3
v1
De 3
c13
Ja
n13
Fe
b13
M
ar
-1
Ap 3
r-1
M 3
ay
-1
3
Ju
n13
Ju
l-1
Au 3
g1
Se 3
p13
Oc
t-1
No 3
v1
De 3
c13
75%–
TARGET
TARGET
ACTUAL
2,807
2,313
1,713 2,710
2,353
2,179
INVENTORY OF VENDOR
80.0–
70.0–
60.0–
50.0–
40.0–
30.0–
20.0–
10.0–
0.0–
– 10
–8
–6
–4
–2
–0
MONTH
Inventory (Million)
TARGET
DOS
BASICS 5S and SAFETY
Before
DANA
After
Before
After
Look for Company
from outside
Before
Space used for
DG Set
146
Free space
After
Usewd for
Ladies room
Space uised for 2 More
machines
Unused M/C and Staircase
After 5’S-Area
became clear
& improved
visualization
– 12
Ja
n1
Fe 2
b
M -12
ar
Ap 12
rM 12
ay
Ju -12
n1
Ju 2
l
Au -12
g
Se -12
pOc 12
tNo 12
v
De -12
cJa 12
nFe 13
b
M -13
ar
Ap 13
rM 13
ay
Ju -13
n1
Ju 3
l
Au -13
g
Se -13
pOc 13
tNo 13
v13
3,144
3,030
20
1
Ja 2
n13
Fe
b1
M 3
ar
-1
Ap 3
r-1
M 3
ay
-1
Ju 3
n1
Ju 3
l-1
Au 3
g1
Se 3
p13
Oc
t-1
No 3
vDe 13
c13
4500–
3,879
3,981
4000–
3500–
2,613
3000– 3,326
2500–
2,440
2000–
1500–
1000–
500–
––
ACTUAL
Inventory (Million)
VENDOR OVERALL PPM
DOS
100%–
DANA
Learning
L
Safety
L
Wastage of Consumables
L
Health & Hygiene
L
Gauge/Tool Handling
140 sq mtrs
additional
space got
after 5’S
5S & SAFETY
Deployment
Benefits
L
Areawise owners of 5’S
L
L
Toilet Cleaning by Operators
Inspection @ Work station
L
PPE’s
Operator working in 4 sq mtrs
L
L
Machine cleaning in every shift
Standardization of consumables
L
L
Right Tool / Gauge @ Right place
Spicer Jodalli
STANDARDIZE & SUSTAIN THROUGH COMMUNITY
LEARNING
DANA
Figure 3: VSME Community members have different skills
and experience
Figure 1: VSME Community applies this traditional Indian
wisdom of communities to the business context
Community is formed
among 9 vendors, which
meets every month at one
vendor's place from Nov 13
Figure 2: VSME Community brings together a group of
heterogeneous companies
Figure 5: VSME Community helps break
barriers between T1 and T2
Figure 4: VSME Community members manufacture
different commodities
All the vendors actively adapted to this new initiative and the results of
last 12 months have been truly remarkable. As it is coined, this is a journey
and would continue for coming years with new vigor to face newer business
challenges.
RECOGNIZE TEAM SUCCESS
DANA
All 9 vendors
felicitated for
completion of
ASME in Oct 13
A Journey to Create Win-Win Relationship with Suppliers
147
BENEFITS
DANA
This is one of the significant steps taken by Spicer to make Jodalli as an
“Export Hub”.
Model to Create Win-Win Relationship with Suppliers in Spicer Jodalli
148
Spicer Jodalli
KPI
2011
2012 YTD
2013
Machining subcontractor
27
25
15
Avg. Monthly
Business with SIL
3.8
3.92
4.66
Sub-Contractor
Overall PPM
4201
3326
2728
Line PPM
2026
1331
1383
Sub-Contractor
Process PPM
2175
1995
1504
Window Timing
(Delivery)
77%
82%
90%
Sharing knowledge
with the Supplier
Removing the Waste at
Supplier end with Active
Involvement
(DO & Demonstrate)
ASME
( Creating Role
Model)
Learning Modules –
1. Observation Skills
2. 5 ‘S’ & Safety
3. Quality Transformation
4. MBF
5. Machine Transformation
6. V-Map
7. Heijunka Planning
8. Train the Trainer
Clear Future
Vision
KPI
.3,
Results & Benefits
1. Vendor window time adherence improved from 77 % to 90%,
17% Improvement.
2. OEE losses reduced from 5.8% to 2%,
3. Vendor Overall PPM reduced from 4201 Yr.2011 to 2916 YTD
2013, 44% Improvement
4. Inventory reduction from Avg. 60 Mill to Avg.30 Mill. , 100%
Improvement.
2011
2012
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Machining sub&RQWUDFWRU
27
27
25
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Avg. Monthly
contractor
15
3.8
3.8
3.92
Business with SIL
6XE&RQWUDFWRU
2YHUDOO330
4201
/LQH330
2026
Sub-Contractor
Overall PPM
Line PPM
Sub-Contractor
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3URFHVV330
Process PPM
Window Timing
:LQGRZ7LPLQJ
(Delivery)
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Inauguration
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YTD
2013
4201
2026
2175
2175
77%
77%
3326
1331
1995
4.66
2728
1383
1504
82%
90%
Working with Supplier
A Journey to Create Win-Win Relationship with Suppliers
149