Sookshm

Project Evaluation Report

XYZ Pvt. Ltd

A, Industrial Area
www.avxsf.com

[Type the company name]

Contents
Background ...................................................................................................................................................... 3
Present Scenario ............................................................................................................................................... 3
Our Vision with <XXX> .............................................................................................................................. 4
Proposed Project Scenario .............................................................................................................................. 4
Cost benefit from increased productivity .................................................................................................. 4
Cost benefit from reduced FG Inventory levels ........................................................................................ 4
Other Benefits............................................................................................................................................... 5
Deliverables ...................................................................................................................................................... 5
Benefits .............................................................................................................................................................. 5
Methodology ..................................................................................................................................................... 6
Time Frame ...................................................................................................................................................... 6
Fees .................................................................................................................................................................... 7
1.

Recurring Cost ...................................................................................................................................... 7

2.

Improvement Based Cost ..................................................................................................................... 7

3.

Project Completion Cost ...................................................................................................................... 7

Consultant Profile ............................................................................................................................................ 8

Summary ................................................................................................................................................... 8
Experience ................................................................................................................................................ 8
Consultant................................................................................................................................................. 8
Publications ............................................................................................................................................ 10
Courses .................................................................................................................................................... 11

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Project Evaluation Report

Background
Based on the discussions, we gather that<XXX> (henceforth called client) is manufacturing automobile
sheet metal components, welded sub-assemblies, machined components and fabricated panels at the <XXX>
plant. The client wishes to increase the productivity of the plant by reducing the changeover time in the
press shop. The client wishes for a system to be implemented at the facility which ensures the reliability of
the new changeover processes.
The client has been actively performing lean activities in the production facility. The client is currently
maintain the inventory levels of 8 days against the national level manufacturing standard of 7 days.
The client is observing 25% growth YoY for their production facility. In the recent years, the client has been
reducing their product catalog.

Present Scenario
The company has been facing problems in the press shop. Forming and punching dies consume most time
during changeover. This is due to the uneven setting up of die and resetting of dies to achieve the first good
piece.
The press shop has 7 lines with 5 single die press machines per line. The company has an estimate of 5 dies
per machine.
(5 m/c) x (1 die) x (7 lines) = 35 dies operating at a time
5 dies per machine on an average
(35) machines x (5 dies) = 175 dies at plant level

Avg. time for die changeover time is 4 hrs per line. Dies are changed on a daily basis at the shop.

Total Working Hours per machine per day = 12 hrs

Total down Time per machine per day = 4 hrs

Effective operating hours = (12 hrs) (4 hrs) = 8hrs
(4 hrs) / (12 hrs) *100 = 33% of the total time is the downtime

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Our Vision with <XXX>

1. Changeover time less than 10 mins
2. First piece correct
3. Anyone can do the change the dies

Proposed Project Scenario

We propose to reduce the down time by 50%. Hence, freeing up nearly 2 hrs daily per machine.
16.7% of the total time will be released for further production.

Cost benefit from increased productivity

On an avg. the company produces 300 components per hour per line.
Our efforts will lead to the client producing additional
(300 components per hr per line) x (7 lines) x (2 hours) = 4200 components per day
Presently, the client is generating 26 crores as revenue per annum. Our efforts will lead to increase in
production and hence create additional scope of revenue.
26 crores from 8 hrs of production in press shop
By adding extra 2 hrs of production, we increase the scope of revenue to
(26 crores) x (10 hrs) / (8 hrs) = 32.5 crores
Creating additional value of 6.5 crores
Taking profitability margin at 20 %
Increase in EBIDTA = 20% of 6.5 crores = 1.3 crores per annum

Cost benefit from reduced FG Inventory levels

The current inventory level in FG is of 8 days. Reduction in die changeover time will lead to lesser FG
inventory storage.
We have expected a decrease in days of inventory storage from 8 days to 6 days.

Current FG Stock value for 250 days (# of working days in a year) = 26 crores
Inventory Cost for 8 days = (26 crores) / (250 days) x (8 days) = 83.2 lakh
Inventory Cost after reduction to 6 days = (26 crores) / (250 days) x (6 days) = 62.4 lakhs
Released Capital = 20.8 lakhs
Benefit because of non-payment of interests = 10% of 20.8 lakh = 2.08 lakh per annum

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31, Mezzanine Floor, Community Center, Basant Lok, Vasant Vihar, New Delhi - 110057

Other Benefits
1. Quality Benefits
Improvement in quality of products and hence decrease in rejection % of the products from the
press shop.
2. Reliability in production time
A reliable process will be put in place to ensure that the effectiveness of the solution is maintained
post engagement. This will ensure reliability in production times as well.
3. Visual Aids
Implementation of visual boards on the production floor to assist workers in performing to the best
level. These boards will acts a guideline/ checklist for the production workers.

Deliverables

Reducing the die changeover time for 175 dies at the press shop by 50% (ie. Reducing from 4-5 hrs
to below 2 hrs)
Creation & Implementation of SOPs for die changeover to ensure continuity of the process

Benefits

Increment in productivity of press shop

Quality Improvements for the products
Inventory reduction
Reliability in production times
Standard Operating Procedures
Visual Aids to assist in die changeovers

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Methodology
We will apply the following methodology to achieve the above objectives:
1. Selecting the product lines for which the changeover time will be reduced. The selection will be
made by the clients team
2. Understanding the process for changeover
a. Brainstorming with the team for identifying the solutions to reduce changeover time
b. Taking video during changeovers
c. Time and Motion Study
d. Mould Design Study
3. Identifying the changes in process, mould and technology required to reduce the changeover time
4. Acquiring technology to reduce changeovers
5. Implementation of the changes on the press shop
6. Studying the effects of the changes
7. Implementation of SOPs to standardize the process
8. Implementation of visual aids in the production facility
9. Go to Step 1

Time Frame
The deliverables will be completed and delivered within the first year from the inception of the project.
There will be a monthly meeting with the top level management informing on the progress of the project and
the benefits delivered.

www.sookshm.co.in by ANTZ AGE Technologies Pvt. Ltd.

31, Mezzanine Floor, Community Center, Basant Lok, Vasant Vihar, New Delhi - 110057

Fees
The cost of the project is divided into 3 parts, as discussed below. The client will have to bear the cost of
transportation

1. Recurring Cost
We will charge a monthly fees of Rs. 1, 00,000/- per month. This fees has to be paid at the beginning of
the period.

2. Improvement Based Cost

We will charge a fees of Rs 3, 00,000/- for every 90 hrs of production released due to reduction on
changeover times.Changeover time is defined as time required to prepare a machine for it to change from
producing the last good piece of the last batch to producing the first good piece of the new batch.
Hrs of production released is defined as the sum total of the avg. changeover time reduced across all dies.

3. Project Completion Cost

We will charge a fees of Rs. 6, 00, 000/- at the completion of 50% reduction in the total changeover time
for 175 dies.
For further reduction in changeover time, we will charge additional 30,000 per 1% reduction in the total
changeover time.

Note:-Transportation cost will be provided by the client. Service tax at the rate of 12.36% and other taxes
will be added to the fees mentioned above.

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Consultant Profile
Summary
XYZ
Close to 15 years of Experience into Automotive, Manufacturing, FMCG & Consulting Industry.
Operations Strategy
Lean Manufacturing
Manufacturing Engineering and Process Excellence
Supply Chain Management, Design & Outsourcing
Business Process Improvement
New Project Development
Vendor Development
Production & Capacity Planning
Electric Vehicle Research

Green manufacturing
Experience
Consultant
Actuate Business Consulting private limited
December 2011 Present (2 years 6 months)Gurgaon, India
Operations and Manufacturing Excellence Supply Chain Management, Design & Outsourcing
Business Strategy & Capacity Planning Business Performance Improvementning
Lead Manufacturing Engineering (Vehicle)
X Auto Ltd
September 2011 December 2011 (4 months)Pantnagar, India
Manufacturing Engineering and Process Excellence New Product Introduction New Product
Manufacturing & Setup Installation Engineering Change Coordination with R&D Quality Improvement
Support to Plant & Supplier Base Overall Manufacturing and Facility Efficiency Improvement Plant
Running & Manufacturing Cost Reduction Special Project Planning & Execution

X Auto - Bikes in India | Bike Prices | New Bikes | Buy Bikes Online | Two Wheeler Manufacturer India |
Latest Motorcycles India | Sports Bikes

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MSc - Student - University of Warwick

X Auto Ltd
October 2010 November 2011 (1 year 2 months)Coventry, United Kingdom
Global Vendor Identification Review UK Manufacturing Market Global Outsourcing Potential Analysis
Electric Vehicle Development and Adoption Barriers

Assistant Manager New Product Development & Manufacturing Engineering

X Auto Ltd
July 2009 September 2011 (2 years 3 months)Pantnagr, India
Manufacturing Engineering & Process Excellence New Product Development Change Management
Process Auditing & Up-gradation Product Planning & Development Chairman Development
Management Pillar for Plant TPM Special Project Planning & Execution

Engineer/ Assistant Manager Materials/SCM/Planning/Vendor Development

X Auto Ltd
July 2006 January 2010 (3 years 7 months)Pantnagar, India
Vendor Development TPM implementation at Vendor End Quality Assurance of Vendor Products
Supply Chain Management Production Planning
Institute of Armament Technology,DRDO- Pune INDIA
January 2006 April 2006 (4 months)Pune Area, India
Project work (1 month at DRDO, Pune and rest at DIT, Dehradun)
Modeling & Performance Evaluation of Boron based Fuel Rich Propellants in Integrated Rocket Ramjet
(IRR) at Department of Guided Missile
Trainee
Escorts Railway Equipment Division-Faridabad, Haryana - INDIA
June 2004 August 2004 (3 months)
Pollution control of high speed/feed CNC machining processes Implementation of different scrap
reduction techniques Work study of different machining processes

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Railway Equipments Manufacturers - Railway Components Suppliers | Escorts Group

Publications
Soft Barriers to the Adoption of Electric Vehicles(Link)
University of Warwick
September 15, 2011
"Soft Barriers to Adoption of Electric Vehicles" is to initiate the drive for continuous improvement of the
Electric Vehicle platform. It will provide Improvement in understanding of the peoples perception about
electric vehicles which in turn will lead to design technological improvements in the future Electric Vehicles
for better customer satisfaction.
2 authors

Rocket Modeling & Performance Evalation

January 2006 April 2006
Modeling & Performance Evaluation of Boron based Fuel Rich Propellants in Integrated Rocket Ramjet
(IRR) at Department of Guided Missile
1. Modeling of Rocket Combustion Chamber in Gambit 2.0
2. CFD in Fluent
3. Performance Evaluation in NASA-SP273
Process Excellence
March 2007 January 2010
Process Excellence (Lean) Implementation at vendor end for Process/ Quality/ Productivity Improvement
Engine Cylinder Block Machine Shop Setup
July 2009 October 2009
Engine Cylinder Block Machine Shop Setup at Pantnagar (ME)
1. Machine refurbishment
2. Machine Shifting Planning
3. Commissioning & Installation
4. Trial Run and Process Setup
LASER - Auto Guided Vehicle (AGV)
March 2010 September 2010
LASER - Auto Guided Vehicle (AGV) implementation for Material Handling
Planning and Implementation of AGV for Engine assembly Material Handling

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Business Performance Improvement(Link)

January 2012 May 2013
Business Performance Improvement of ACPL - India a Subsidiary of Zamil Group
Courses
University of Warwick

Industrial Engineering
Operation Strategy for Industry
Project Planning, Management & Control
Financial Analysis & Control Systems
Manufacturing Process Technology
Logistics & Operations Management
Problem Solving With Statistics
Automation & Robotics
Advanced Materials & Processes
Quality Reliability & Maintenance

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31, Mezzanine Floor, Community Center, Basant Lok, Vasant Vihar, New Delhi - 110057