FOR RANE TRW STEERING SYSTEMS LTD.
Reg. No 3510 3085
S.R.M. Engineering College
A PROJECT REPORT
Submitted to the
School of Management
In partial fulfillment of the requirements
for the award of the degree
MASTER OF BUSINESS ADMINISTRATION
SRM INSTITUTE OF SCIENCE AND TECHNOLOGY
Certified that this project report titled Value Stream Mapping is the bonafide work of Mr. / Ms B. Gokulakrishnan who carried out the research under my supervision. Certified further, that to the best of my knowledge the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.
Signature of the Guide
Signature of the HOD
Mr. Sada Sivan
Rane Group is a leading manufacturer of safety critical automotive components in India with a consolidated group turnover of Indian Rs.8.7 billion (USD 192 million) in 2003-2004. The group has access to technology from global leaders like TRW Inc. USA, NSK Japan, Nisshinbo Industries Japan. Rane companies are certified to ISO 9002 / QS 9000 / ISO 14001 standards. Rane products are exported to over 19 countries across the globe. Rane TRW Steering Systems Ltd. are the manufacturers of Steering Systems for Automobiles for the past 9yrs. They are accreted to ISO Standards of Total Quality Management
(TS 16949). They are being supplying the system to TATA, TELCO, HYUNDAI, MARUTI, GENERAL MOTORS, etc.
As Auto Industry is on the verge for a boom in our country, the company is planning to be at a major part in it. Foreign carmakers are being outsourcing their plant and components for Auto Industry to India. Out of several parts of a car, one of it is Steering and a Pump for functioning of the steering. So these are manufactured in Rane. These parts produced are expected to be highly in quality and matching the technology of the Company concerned. Rane being up to their continuous improvement in Quality Standards and targeting the boom of Industry was in need to identify the Non-Value Adding items in their company activities. These items are described to be increasing their lead-time to Manufacturing of their products. As company is in process of developing their output they have been looking for shrewd items that could be eliminated or modified for betterment of the process. This is called Value Stream Mapping.
Rane TRW Steering Systems Ltd. consists of PUMP DIVISION and PR&P DIVISION. My project was assigned to do Value Stream Mapping at the Materials Management Department of PUMP DIVISION.
The company follows a Standard Operating Procedure (SOP) for each of its activities carried out in the company. These procedures has been verified and approved by concerned authorities. As production was planned to be in the mode to increasing the output, the company wanted to simplify these procedures, eliminate the unwanted or modify to add better value, to achieve the increased target within time limit and with the present scenario. At the Material Management Department, the Stores, goods come in from various suppliers, which are checked for Quality and then being placed in their respective locations. There are 745 materials that Pump Division operates, which are stored at 524 locations. Racks are used for storage and company follows First In First Out (FIFO) system for issue of materials. Certain
materials are also issued for Sub-Contractors to accomplish the tasks. Rane uses BAAN system for accounting of materials.
All the activities were observed and non-value adding activities were identified for which recommendations were put forward to the management.
I take this opportunity to thank Dr.Jayshree Suresh, Dean, for her efforts to give me skilful knowledge about whole of Management. Her confidence would...