Summer Internship Report

Daimler India Commercial Vehicles 2017
SUMMER INTERNSHIP PROJECT REPORT
SUBMITTED BY
Swati Singh
(10-06-11)
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR
PGDM-Executive, 2016-18
UNDER THE GUIDANCE OF
Dr. Pramod Shetty
KJ Somaiya Institute of Management Studies and Research
Internship Report || Swati Singh (PGDM Executive) Page 0

JIT Implementation for Seoyon-E-Hwa
Daimler Trucks Asia
BY
Swati Singh
10-06-11
UNDER THE GUIDANCE OF
Mr. Anand Zalke Dr. Pramod Shetty
Senior Manager Professor (Operations)
Material Handling Engineering KJ Somaiya Institute of Management

Studies and Research

Declaration
I hereby declare, to the best of my knowledge and ability that my work on the Summer
Internship Project title JIT Implementation for Seoyon-E-Hwa is a genuine research work
undertaken by me. It has not been published anywhere earlier and is prepared after
completion of the Summer Internship Program with Daimler India Commercial Vehicles
Name: Swati Singh
Roll No.:10-06-11

Certificate from summer project guide
THIS IS TO CERTIFY THAT SWATI SINGH, STUDENT OF THE PGDM-EXECUTIVE

AT KJ SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH, HAS
WORKED UNDER OUR GUIDANCE AND SUPERVISION. THIS SUMMER PROJECT
REPORT TITLE JIT IMPLEMENTATION FOR SEOYON-E-HWA HAS THE
REQUISITE STANDANRD AND TO THE BEST OF OUR KNOWLEDGE HAS NO
PART OF IT BEEN REPRODUCED FROM ANY OTHER SUMMER PROJECT,
MONOGRAPH, REPORT OR BOOK.
FACULTY GUIDE CORPORATE GUIDE
Dr. Pramod Shetty Mr. Anand Zalke
Professor (Operations) Senior Manager
SIMSR DICV

Certificate

Table of Contents
Declaration .............................................................................................................................................. 2
Certificate from summer project guide .................................................................................................. 3
Certificate................................................................................................................................................ 4
Acknowledgement .................................................................................................................................. 7
Preface .................................................................................................................................................... 8
Introduction to Daimler .......................................................................................................................... 9
Timeline................................................................................................................................................. 10
Company Profile of DICV ....................................................................................................................... 11
Executive Summary............................................................................................................................... 15
Milestones............................................................................................................................................. 16
Organization of Supply Chain Management ......................................................................................... 17
Role of MHE Team ................................................................................................................................ 18
End to End process flow........................................................................................................................ 20
Process and department wise work distribution .................................................................................. 24
Work Packages under JIT implementation for Seoyon-E-Hwa ............................................................. 25
BRS is the system requirement for JIT implementation of Seoyon-E-Hwa parts. Benefits arising out
of this development (including report) / enhancement / change: - ................................................. 42
CONCLUSION......................................................................................................................................... 47
Conclusion and Recommendations ...................................................................................................... 49

Work packages under JIT implementation
End to End process flow

Project Preparation
Part inventory and storage space analysis - Current state mapping
Truck trip time study
Process study @ Seoyon-E-Hwa
Analysis of production data for Kanban calculation
Proposal for project targets
SWOT Analysis
Conclusion

Acknowledgement
The internship opportunity I had with DICV was a great chance for learning and
professional development. Therefore, I consider myself as a very lucky individual as I was
provided with an opportunity to be a part of this company during my MBA. I am also grateful
for having a chance to meet so many wonderful people and professionals who led me though
this internship period and gave me a home away from home in Chennai.
Bearing in mind previous I am using this opportunity to express my deep gratitude

and thanks firstly to Mr. Hareram, DGM MHE for giving me a chance to be a part of his
department and for being extremely supportive throughout my internship. Next I would like
to thank Mr. Anand Zalke [Senior Manager] of DICV , who in spite of being busy with
his regular duties, took time out to hear, guide and correct me thus enabling me to carry out
my project successfully at DICV. I express my deepest thanks for taking part in many
important decisions & giving necessary advice and guidance and arranging all facilities to
make life easier.
I also wish to place on record my best regards, deepest sense of gratitude to other
members of the team for their careful and precious guidance which were extremely valuable
for my study both theoretically and practically.
I perceive this opportunity as a big milestone in my career development. I will strive

to use gained skills and knowledge in the best possible way, and I will continue to work on
my improvement, in order to attain desired career objectives. Hope to continue cooperation
with all of you in the future and to guide me for my future opportunities.
Sincerely,
Swati Singh
Oragadam, 20th July, 2017

Preface
Summer internship is an important part of the MBA degree as it gives us a practical
knowledge of the industry. It gives us an insight of how an organization works. I got an
opportunity to complete my summer internship at Daimler India Commercial Vehicle Pvt.
Ltd, Chennai Plant in the Supply Chain Management domain in the department Management
Handling Engineering.
It was a great experience to work with the corporation which has made itself a brand
in the commercial vehicle sector on the national and international level. Daimler Trucks is the
worlds largest manufacturer of trucks and is consistently increasing its share in the Indian
market.
I as an intern worked in MHE department for a period of 15 weeks. My department is

concerned about logistics Plan for Every Part to be used in the production line, logistics
Infrastructure necessary for material storage, handling and movement are planned and
implemented, Packaging Design and Development.
The topic of my summer internship was JIT Implementation for Seoyon-E-Hwa

based on Daimlers Truck Operating System an in house system of reporting and
tracking important KPIs of the different teams under Supply Chain Management and
Logistics. Just-in-time is to produce and transport what is required, when it is required and in
what quantity it is required.
In addition to the JIT implementation, I also had the responsibility of line side
readiness of frame shop for TF titan.

Introduction to Daimler
Daimler AG is a German multinational automotive corporation. Daimler AG is
headquartered in Stuttgart, Baden-Wrttemberg, Germany. By unit sales, it is the thirteenth-
largest car manufacturer and largest truck manufacturer in the world. In addition to
automobiles, Daimler manufactures buses and provides financial services through its Daimler
Financial Services arm.
As of 2017, Daimler owns or has shares in a number of car, bus, truck and motorcycle
marquees including Mercedes-Benz, Mercedes-AMG, Smart Automobile, Freightliner,
Western Star, Thomas Built Buses, Setra, BharatBenz, Mitsubishi Fuso, MV Agusta as well
as shares in Denza, KAMAZ, Beijing Automotive Group, Tesla Motors, and Renault-Nissan
Alliance. The Maybach marquee was closed at the end of 2012, but was revived in November
2014 as "Mercedes-Maybach", an ultra-luxury edition of the Mercedes-Benz S-Class.

Timeline
1959
1896
Production 2007
2012
Worlds first of Pullman
truck with a van with 2 1981 Start of Global
1. Detroit
4 hp and 2 Heavy duty
controlled introduced as
cylinder 1923 axle
Acquisition Engine Platform
of new brand for
engine prodn. at
First Freightliner power portfolio
Detroit
operational 2001 2015
2. Start of
diesel
production
engine by 1969 Acquisition of Start of heavy
series 900 and
Benz US Engine duty
Start of medium duty in
manufacturer transmission
planetary India
Detroit -DDC production in
hub prodn. Detroit
In Rastatt
1908
Foundation 1969 2008

of Benz
plant in Kassel plant
2014
Partial
Mannheim joins Acquisition Mercedes
Daimler of 2011 Benz future
1894 1956
1998 Mitsubishi truck 2025:
FUSO 1. 50:50 JV
Foundation 1. Production First
Thomas with Foton in
of Gaggenau of first engine autonomou
built buses China
plant in Brazil sly driving
joins the
2. Foundation truck
2. Foundation company
1883 of Global
of sao 1998 power train
Foundation Bemardo
of Benz and does campo Foundation 3. Intro of
Gasmotoren- plant in Brazil of Axle New brand
Fabrik Alliance BharatBenz in
Mannheim Company India
AAC
4. JV with
Kamaz starts
production

Company Profile of DICV

There is a great desire among Indian customers for a world class truck which they can
proudly call their own. The need of the hour is a truck that will give them a high value on
their investment. With this perspective, Daimler AG incorporated Daimler India Commercial
Vehicles (DICV) as a wholly-owned subsidiary in 2008, in order to create world-class
products, to be manufactured indigenously in partnership with Indian suppliers.
Currently, Daimler is present in the Indian market with the Mercedes-Benz brand of
trucks. Beginning 2012, DICV initiated production of commercial vehicles under the
uniquely Indian brand BharatBenz. Towards this objective, DICV had invested Rs.4,400
crores in establishing a state-of-the-art manufacturing plant at Oragadam near Chennai,
including an extensive research & development arm.
Subsequent to the launch of an all new brand "BharatBenz", DICV set to take its
vision and mission into the market. After a successful Premiere of its trucks in March 2012,
DICV inaugurated its state-of-the art plant at Oragadam, near Chennai, in April 2012. Later,
in June 2012, it began production of the Heavy-duty trucks. This was followed by a slew of
dealerships that were inaugurated. On 26 September 2012, DICV launched its Heavy-duty
trucks after an intense period of testing. February 2013, witnessed the launch of the
Light/Medium duty range. DICV also launched the new FUSO range of trucks at its plant on
23 May 2013, as part of its well-coordinated Asia Business Model.
Daimler India Commercial Vehicles Pvt. Ltd (DICV), a 100% wholly owned subsidiary
of Daimler AG, on 10th July 2013, rolled out the 5000th truck from its plant at Oragadam,
near Chennai. DICV is stabilizing its production line of all its launched models. Currently,
DICV produces the 2523, 3123, 2528, 914, 1214, 4923, 4928, 3128, 1623 & 1217 (Heavy,
Medium/Light-duty rigid & tipper trucks) with several more variants.

Domestic Vehicles:
Medium Duty (GVW 915T)
MD914 R MD1214 MD IN-POWER 1214RE
Heavy Duty (GVW 1637T)
1617R 2523R 3123 R
Tippers (GVW 12-31T)
1217C 2528CM 3128C

Thunderbolt
3143CM Used for heavy duty, off road, deep pit iron ore mining, coal mining, etc.
31T max. Vehicle weight with a usable load of 19T and a 12L 430HP BS4 engine.
Tractors (GVW 40-49T)
4023T 4928T
Buses
9T School Bus 9T Staff Bus FUSO Fighter

Export Vehicles:
FUSO Canter LIFT FUSO FJ FUSO Fighter
On MARCH 6TH 2014, Daimler laid the foundation stone for its new bus plant. The new
bus manufacturing plant is spread across an area of 27.91 acres within the existing premises
of DICV. The bus plant manufactures and assemble buses under the Mercedes-Benz and
BharatBenz brands and will be completed by the 2nd quarter 2015. The DICV plant in
Oragadam will thus be the only Daimler Truck plant worldwide, that manufactures three
brands of Trucks and Buses, as well as engines under one roof. Daimler India buses are
offered in 9t, 16t and above 16t categories in both front and rear engine configurations. An
investment of INR 425 Cr has been earmarked for the bus project in India for an installed
capacity of 1500 units in the initial phase. The capacity can be further expanded to 4000 units
subsequently. On 10th April 2014, Daimlers BharatBenz trucks rode on high gear and
crossed 10,000 units sale. In the end of 2016, Daimler achieved the following:
Sales of domestic vehicles (all variants) crossed 45,000

Export vehicles sales (all variants) grew 117% YoY to 4,300
3 new launches planned and ready for 2017-
o New Generation HDT in April 2017
o New Light Duty Trucks TF Titan for export markets
o 16 Ton Bus to be launched in Q2/Q3 of 2017

Executive Summary
The Supply Chain Management department is divided into various divisions namely
Power train, Vehicle, In Bound Logistics, Out Bound Logistics, In Plant Logistics,
Consolidation Centre and more. Each division is tasked with ensuring the supply and
availability of particular parts and aggregates to the production line. I was working in the
MHE department which is responsible for plan for every parts used in production line,
logistics Infrastructure necessary for material storage, handling and movement, packaging
concerns and resolution process, packaging design and development.
The Supply Chain and Logistics (SCML) department handles more than 6000
different parts from about 280 local suppliers across India. These suppliers are spread out
across various regions and cities like Chennai, Coimbatore, Pune, Pithampur, Rajkot and
Delhi. In addition, there are many parts that are imported and many parts that are under
development for localization and exports, which are also handled by the SCML department
through its Consolidation Centre. Finally, the finished vehicles are also transported by
SCML. During the course of the training, the working of different sub-departments was
studied and different parameters were evaluated based on the criticality and importance for
keeping the Heavy Duty Trucks, Medium Duty Trucks and Bus production lines running.
Every team of the supply chain management is interconnected with other teams, and a
common reporting standard was developed, so that key KPIs and aggregate supportability
numbers are easily available for all teams.
The main goal of the project need to connect all supply chain activities by inventory
and space reduction, efficient storage and handling , reduction of truck turnaround time and
by reduction of multiple handling. JIT implementation of Seoyon-E-Hwa will result in
savings of 3 lacs INR and 35 sq. m. of storage space.

Milestones

Organization of Supply Chain Management

The organization of Supply Chain Management in DICV is as follows:
The Supply Chain Management department of DICV is organized as f

L2 Vice President
Supplier Management
L3 SM Vehicle L3 SM L3 Logistics L3 Logistics L3 SCM

Powertrain Planning Operations Governance
Ollows
HDT Engine
Frame, Chassis MDT Engine

and Suspension
Axle/Prop shaft Launch, Change Inbound and SCM Quality
Interior/Exterior & Inventory Outbound Assurance
Transmission
Electrical & Production International SC
Casting & Planning/Control Supply/Customs Processes/Syste
Mechatronic
Forging ms
Cabin in White Material handling In-Plant
Projects Engineer Logistics CC Operations
Load Body &
Material and
Chassis
Process
Technology

Role of MHE Team

1) Plan for every parts process for DICV
2) Process Description-Logistics infrastructure planning and implementation

3) Process Description - Packaging concern resolution process
4) Process Description - Packaging design and development

End to End process flow
I. Material Trigger to supplier: First marketing and sales team will give the monthly
requirement as per market scenario. Then PPS team will validate the supportability and
schedule the posting on vendor portal. IBL team will give collection date to supplier.
Supplier will generate invoice copy and ASN (advanced ship notice) and will plan for
material delivery as per IBL team.
II. Reporting at Material Gate: Once supplier truck reaches at material gate, DICV
shipment related vehicles comes to parking area. After parking, driver walks to Material
Gate (MG) and hands over Original for Buyer (OFB), Duplicate for Transporter (DFT)
and Lorry Receipt (LR) to Security. Security verifies document and gives invoice to
Inward team.
III. Inwarding Activity: Inward team looks for ASN availability. If ASN not available then
truck will be parked at yard until ASN is raised or Deviation note is received. IF ASN is
available then invoice is processed for Inward Entry .GVN is printed and handed over to
Driver. Reporting of vehicle at concerned dock as mentioned in the Goods Verification
Note.

IV. Unloading Process: Unloading Team verifies Vehicle details as per GVN /Invoice copy,
and then unloads the material. Checking the no. of pallets/Packages unloaded and is
verified with GVN. Acknowledgement given on GVN 2nd copy and same is handed over
to driver.
V. Quantity matching activity: As per GVN, 100% Physical verification carried out only for
top 20 discrepancy supplier which will be circulated quarter wise and the same will be
displayed in all unloading docks. Sample check made in all other receipts. In case of
discrepancy /packaging damage then material is moved to hold area and discrepancy
report / ISPR report is generated.
VI. GRN preparation: Based on GVN acknowledgement GRN is prepared. GRN No written
on the GVN and GVN is forwarded for matching. Gate Exit is done based on
acknowledged copy. Driver will be given extra invoice with security stamp & Material
gate stamp as acknowledgement for material receipt.
VII. Invoice submission to Finance: GVN is matched with Invoice. GRN No written on
invoice. Extra copy of invoice & GVN filed for reference purpose. OFB & DFT is
submitted to Finance \based on Finance report, acknowledgement is taken for submission
and filed for reference.
VIII. Gate Pass Generation with Quality Flag at the Gate: Parts requiring Incoming quality
inspection are identified by Q-Flag in SAP System Gate Pass is generated with items and
Quality Check Indicator.
IX. Materials are unloaded at the designated dock: IPL -Unloading team will receive the
gate pass and unload the items. Items which are to be checked for quality are segregated
based on Q-Flag in the GVN/Gate Pass, All after sales receipt for 100% inspection:
Palletization of items which are to be moved to quality inspection area Sampling Plan
agreed between PQ&IPL to be used for segregation All after sales receipt will be 100%
offered to PQ for inspection irrespective of Q-flag.
X. Goods Receipt in system: System Transaction to receive goods in system is done and GR
Slip is generated; Items are blocked until quality inspection is completed Quality
Inspection team is notified.
XI. Movement to Quality Inspection Area: Items which are to be inspected for quality are
moved to quality inspection area sampling quantity is only moved to quality inspection
area.
XII. Quality Inspection is completed: Preventive Quality Team approves the usage of
material in the system by triggering a usage decision in system.

XIII. Communication of usage decision to In- Plant Logistics Team: In-Plant Logistics
receives email regarding put away Usage Decision triggers a put away slip in the printer.
XIV. Movement to designated storage location: Put away slips generated indicate the
designated location to which the approved items need to be put away.
For Seoyon-E-Hwa there is no quality check part. Finally from LC to line side movement of
parts internal Kanban is used.
Pick list is generated after scanning all the barcode of Kanban cards at production line side.
Post picking data after scanning all Kanban cards in a route, pick list is generated in LC. Parts
from LC are collected as per pick list and kept at staging area. Tugger operator will get the
parts from staging to feed the line side location. Stock will transfer from PP-10 to WP-10.
Sample Sheets (used during material Inwarding & Out warding)
Invoice Copy
Good verification Note
(GVN)
OEM route trip sheet

GRN
Pick List
Line Side Label
Kanban Card

Process and department wise work distribution under VSM
Monthly
Marketing Requirement
Validate 6 week rolling Upload in Plan moves Agg. Level MRP Run Schedule
PPS supportability plan APO to D2S requirement Short and posting on
generation long term vendor portal
Give
IBL collection
date to
supplier
Generate Generate
Supplier invoice and invoice and
ASN ASN
Y
Generate Prepare GVN
Material invoice and Verify
Gate ASN
N
SM will
SM correct ASN
Rising of
claim to SM
Scanning Moving of
N of TO for material to
Y N Material supp. no. desired
GRN
Unloading of Verify Q flag moved to to move location
IPL material
preparation and
put away and
as per parts par to
label printing
GVN desired closing of
location TO
Stock moves in
SAP Y
Parts moved to
PQ PQ

Work Packages under JIT implementation for Seoyon-E-Hwa

1) Project Preparation
It is an attempt to identify and define project work (goals and objectives) and to establish an
efficient decision making process for managing further planning and development of the
project.
Following are the steps involved in preparation phase:-
Prepare Project Charter
Align with the project members
For JIT project different department stakeholders alignment is must where appropriate
project participants are working within acceptable tolerances to develop and meet a uniformly
defined and understood set of project objectives. Aligning the project team involves
developing clearly understood objectives for all team members and gaining the commitment
to work toward those goals. Different project team involved in JIT is MHE, IBL, SCQM,
PPS, and IPL.
Prepare weekly planner
Tactical Implementation Plan is derived from a common understanding of the project need to
change or improve, and is the common tool that is used to make it clear to all, the actions
required to achieve the JIT goals and targets. A Tactical implementation plan incorporates the
resultant actions from the gap analysis phase which enables the move from current to future
state. To plan and execute actions effectively requires the use of a standard and structured
scheduling tool. The T.I.P. is constructed to show the tasks that are required to be completed
in a specific timescale, and make visible the progress against each task to be able to review it

on a regular basis. Missed milestones need highlighting when known, and then the standard
escalation process needs to be followed.

Prepare Project member availability calendar
This calendar specifies the duration different stakeholders must give for the project.
2) Part inventory and storage space analysis - Current state mapping
This includes the activities related to holding parts and the processes of counting and
transacting the parts as it moved out of LC.
Kickoff the project with supplier
Kickoff meeting is the first meeting with the project team and the client of the project. This
meeting would follow definition of the base elements for the project and other project
planning activities. This meeting introduces the members of the project team and the client
and provides the opportunity to discuss the role of team member. Other base elements in the
project that involve the client may also be discussed at this meeting (schedule, status
reporting, etc.).
Collect the PFEP data
PFEP is a database that is maintained to record information of each part, part number, pack
quantity, variant list, part description, point of consumption, packaging dimensions, loop
quantity, stock at DICV etc.

Monitoring the current truck trip and analysis of supplier's FG
Total truck cycle time for plant#2 is 4hrs and 45 mins.
Total truck cycle time for plant#3 is 14hrs.

Monitoring the line stoppage

Cross verify with IPL team, there was production line stoppage because of Seoyon-E-Hwa
parts in last 3 months.
Vehicle assembly calculation
TAKT time is the available production time divided by the units a customer demands. For
HDT line takt time is 8.4min (540/64) and for MDT line 13.5min (540/40).
Collect the inventory level @ DICV
Present inventory level data is collected from SAP. Inventory level in the plant (in days) =
Lead time for replenishment (in days) + Safety stock (in days). Safety stock depends on
factors such as; unplanned production peaks, quality rejection of supplier parts, Truck
breakdown etc. Based on previous record of production fluctuation and supplier part rejection
rate safety stock can be defined between 1.5 to 2 truck load of inventory

Storage space measurement @ DICV
Space occupied by each part is measured with IPL team to cross check space saving after JIT
implementation.
GLT KLT Area Saving (%)

Total Area Present 229.05 19.81 248.86
Total Area Required 199.38 13.86 213.24
Area Saved 29.67 5.95 35.62
Total Area Saved 35.62 14.31
warehouse cost/m2 40000
Savings (Rs.) 1424640 0.14
NOTE Area .96 (one layer) * 4 *2 7.68 (For Market Place Rack)
Verify PFEP at LC
Plan for every part is check with IPL team in LC. This step includes cross checking the part
number against part pack quantity, packaging dimensions, storage location, actual pallets
present at LC, maximum pallets for the parts, area occupied by the individual parts.

Current state mapping Workshop
Current state mapping is a lean-management method for analyzing the current state and
designing a future state for the series of events that take parts from its beginning through to
the DICV.
From DICV supply manager send daily schedule of parts requirement to supplier through
mail and supplier gets the monthly forecast at beginning of every month through SAP.As per

daily requirement supplier keeps the FG ready in DICV pallet at dispatch area. TVS logistics
is the logistics partner for DICV. For plant#2 total trips is 2 per day and for plant#3 is 1 per
day. Plant#2 is 3kms from DICV and plant#3 is 30kms.Empty pallets loaded trucks reaches
supplier plant and unloaded .Total time of travelling for plant#2 is 15mins and plant#3 is
45mins and unloading time for plant#2 is 20mins and for plant#3 is 35mins. FG pallets are
loaded back in trucks and time for loading at plant#2 is 26mins and for plant#3 is 75mins.
Trucks after loading return to DICV fence gate and the time from plant#2 is 7mins and from
plant#3 is 30mins. After reaching to DICV Inwarding procedure starts which takes 15mins
for plant#2 parts and 60mins for plant#3 parts. After FG unloading trucks goes to side
loading area of DICV for empty loading and time recorded for plant#2 is 28 mins and for
plant#3 is 20mins. By considering all the above mention time and including waiting time
total trip time for Plant#2 is 4hrs 45mins and for plant#3 is 23hrs.
Prepare part matrix
Part Matrix for Seoyon-E-Hwa contains all the details of the parts. There are total 72 parts pf
Seoyon-E-Hwa out of which 26 is from Plant#2 and 46 from plant#3.Sample copy of part
matrix is shown below.


3) Truck trip time study
Truck queue time study

This step involves the study of loading/unloading @ DICV and Seoyon-E-Hwa along with
study of gate in/gate out @ DICV and Seoyon-E-Hwa.
Trip Time Activities at plant#2

10:52:00 AM Seoyon-E-Hwa plant#2 in
11:05:00 AM Seoyon-E-Hwa Empty Unloading starts
11:24:00 AM Seoyon-E-Hwa Empty Unloading finished
11:26:00 AM Seoyon-E-Hwa FG Loading starts
11:52:00 AM Seoyon-E-Hwa FG Loading finished
12:03:00 PM Seoyon-E-Hwa plant#2 Out
12:15:00 PM DICV Inward time
Trip 1 12:45:00 PM DICV dock in
3:00:00 PM DICV FG unloading starts
3:13:00 PM DICV FG unloading finished
3:13:00 PM DICV dock out
3:16:00 PM Side loading window In (Empty Collection)
3:45:00 PM Side loading window Out (Empty Collection)
4:28:00 PM DICV Outward time
Trip Time Activities
6:28:00 PM Seoyon-E-Hwa plant#2 in
7:05:00 PM Seoyon-E-Hwa Empty Unloading starts
7:25:00 PM Seoyon-E-Hwa Empty Unloading finished
8:03:00 PM Seoyon-E-Hwa FG Loading starts
8:30:00 PM Seoyon-E-Hwa FG Loading finished
6:48:00 PM DICV Inward time
Trip 2 7:37:00 PM DICV dock in
7:55:00 PM DICV FG unloading starts
8:10:00 AM DICV FG unloading finished
8:12:00 AM DICV dock out
8:15:00 AM Side loading window In (Empty Collection)
8:38:00 AM Side loading window Out (Empty Collection)
9:00:00 AM DICV Outward time
DICV In Dock In Dock Out DICV Out Seoyon-E- Seoyon-E-

Hwa In Hwa Out
1st Trip 7:30:00 AM 8:05:00 AM 8:20:00 AM 10:22:00 AM 10:52:00 AM 12:03:00 PM
nd
2 Trip 12:15:00 PM 12:50:00 PM 3:13:00 PM 4:28:00 PM 6:28:00 PM 10:03:00 PM

Trip Time Activities at plant#3

11:49:00 AM Seoyon-E-Hwa plant#3 in
2:35:00 PM Seoyon-E-Hwa Empty Unloading starts
3:10:00 PM Seoyon-E-Hwa Empty Unloading finished
7:10:00 PM Seoyon-E-Hwa FG Loading starts
8:25:00 PM Seoyon-E-Hwa FG Loading finished
Trip 1 10:05:00 PM DICV Inward time
7:00:00 AM DICV dock in
7:23:00 AM DICV FG unloading starts
8:25:00 AM DICV FG unloading finished
8:30:00 AM DICV dock out
9:15:00 AM Side loading window In (Empty Collection)
9:35:00 PM Side loading window Out (Empty Collection)
10:16:00 AM DICV Outward time
DICV In Dock In Dock Out DICV Out Seoyon-E- Seoyon-E-

Hwa In Hwa Out
1st Trip 10:05:00PM 7:00:00AM 8:30:00 AM 10:16:00 AM 11:49:00 AM 9:25:00 PM
Truck load capacity calculation
Truck load capacity calculation for plant#2 is shown in the following excel sheet. The
efficiency of truck for plant#2 is 98% and the weight required is 52%.This data is received
from IBL team.

Truck load capacity calculation for plant#3 is shown in the following excel sheet. The
efficiency of truck for plant#3 is 94% and the weight required is 64%.

4) Process study @ Seoyon-E-Hwa
1 2 3 4 5 6
Inventory Inventory @ Inventory @ Storage space Area Area
Level @ plant 2 plant 3 measurement calculation @ Calculation @
supplier end plant 2 Plant 3
9 8 7
System Packaging Past 3
Requirement Verificati month line
on at LC stoppage
data
Collect the inventory level @ Seoyon-E-Hwa
Inventory at supplier end is calculated and cross verify with the forecast volume of Daimler
requirement for both the plants. How much of inventory in the form of finished goods must
be present at supplier side to cater to Daimler daily peak volume. Excel sheet for both the
plant inventory is given below.
Inventory at Plant#2:

Inventory at Plant#3:

Storage space measurement @ Seoyon-E-Hwa
Dispatch area and finished goods area layout of Seoyon-E-Hwa end is measured. After JIT
additional space requirement is calculated and implemented after discussion with the
supplier. Layout and area calculation for both the plant is given as follows:
PLANT # 3 DAIMLER PART STORAGE AREA
No Location Size
Raw Material 50
1
Area 1 Sqm
1 3 Raw Material 40
2
Area 2 Sqm
Raw Material 200

3
2 Area 3 Sqm
50
4 FG Area
Sqm

Area Calculations Plant 2 Plant3
Area Required (1 Day dispatch ready) 87.6 53.04
Area Available 261.464 50
Difference 173.864 -3.04
Scheduling data collection - Monthly forecast and Daily schedule

On the basis of monthly forecast and daily schedule daily peak production volume is
calculated. Based on daily peak production stock at DICV, safety stock, transit stock and
supplier stock days are calculated. Sample copy of parts daily consumption is attached.
Row Sum of Sum of Sum of Sum of

Labels A4008110210 A4008110310 A4008110041 A4008100510A0
1/4/2016 0 0 0 9
1/5/2016 0 0 0 25
1/6/2016 0 0 0 30
1/7/2016 0 0 0 23
1/8/2016 0 0 0 21
1/11/2016 4 4 4 26
1/13/2016 7 7 8 18
1/14/2016 19 19 19 4
1/18/2016 7 7 7 3
1/19/2016 14 14 14 10
1/20/2016 10 10 10 8
1/21/2016 10 10 10 13
1/22/2016 3 3 3 24
1/23/2016 5 5 5 20
1/24/2016 6 6 6 17
1/25/2016 4 4 4 20
1/27/2016 4 4 4 22
1/28/2016 1 1 1 24
1/29/2016 1 1 1 24
1/30/2016 0 0 0 27
2/1/2016 0 0 0 22
2/2/2016 0 0 0 17
Process study @Seoyon-E-Hwa - Gemba walk
This step involves understanding supplier end process. Plant#2 and plant#3 visit done to
know how they storing, loading and unloading DICV stock. How much area space is for

DICV, how much inventory is maintained, which vehicle is used for inventory movement.
How much time is required for parts loading, unloading, waiting time for gate in, dock in,
dock out, gate out.
5) Analysis of production data for Kanban calculation
1 2 3 4 5 6
Last 3 month Average Next 3 month Demand Delivery Vs Rework Data
production demand forecast plan fluctuation Plan Data (% rejection)
volume
9 8 7
Collect the data for last 3 month production volume
Last 12 months data is considered for calculation of daily peak volume.
Calculate the average demand based on production volume
Forecast 3 months data is taken. Highest consumption for particular months among the 3 is
considered and is divided by 24 days (no. of working days) which in return is divided by the
usage per vehicle to get the average volume.
Collect the data from PPS for next 3 months forecast/Plan and Calculate the
average demand based on forecast volume
PPS team looks into the production planning and scheduling after getting details from
marketing and sales team about market demand. On basis of market demand they prepare the
forecast value for each and every part. This will give the average daily consumption volume.
Based on which operation stock and safety stock at DICV is calculated. This further will
define the truck trip and volume.
Calculate the demand fluctuation
Demand fluctuation of daily peak production volume is finalized by 3 different stakeholders

of the project PPS team, SCQM team and MHE team. MHE calculate peak production on
basis of 12 consumption data. 391 days consumption data is counted and divided into the
interval of 5, from 1-5 to 65-70.The highest peak volume as per number of days parts
consume is consider as peak volume for the particular part.

Collect the data of Delivery vs. Plan (From Supplier to DICV)

Cross verifying the trigger list which is sent by PPS team to supplier about daily consumption
and what is receive at DICV is same. If there is mismatch again list is sent to supplier through
supply manager is equalize in next delivery from supplier end.
Collect the data of rework (% of rejection as incoming)

This step involves if Palletization of items which are to be moved to quality inspection area
Sampling Plan agreed between PQ&IPL to be used for segregation. Preventive quality team
will look for defects in the parts and send to claim pool management (CPM) team for
rectification if can be done at DICV else parts will be reverted back to supplier. There is no
rework and rejection in last 3 months for Seoyon-E-Hwa parts.
Collect the past 3 month line stoppage data due to Supplier parts
This line stoppage data is from IPL team and there is no line stoppage due to Seoyon-E-Hwa
parts.
i) Repackaging / standard packaging Out of 72 parts 5 parts repacking is done and
rest 67 parts are kept in containers received from supplier end.
ii) Container loop For 72 parts 341 containers is in the loop.
iii) Container classification - Out of total 72 parts 38 parts are kept in GLT whereas
34 parts are kept in KLT.
Packaging verification at LC
Physical verification of each and every parts of Seoyon-E-Hwa is done at LC. Which include
counting the number of pallets, bins/container dimension, pack quantity and internal Kanban
cards and area occupied by parts.
System Requirement
BRS is the system requirement for JIT implementation of Seoyon-E-Hwa parts. Benefits
arising out of this development (including report) / enhancement / change: -
Implementation of E-Kanban by sending automatic trigger to supplier for parts
dispatch based on the consumption of parts at line-side.
Automated trigger to the supplier for Just-in-time parts delivery.
Real time transparency on physical stock through intranet portal.

Portal should send the mail regarding consumption information to the supplier at
regular defined interval.
Field details needed for creation of BRS portal:
Fields Description
Vendor Code JIT supplier
Plant 6365
Part Number All parts from the selected vendor based on the vendor code
Opening stock Stock immediately after the trigger time
Received stock Stock when GRN is made
Consumed Stock transfer from PP10 to WP10 ( Consider open posting for calculations)
stock
Safety Stock Reflect the existing safety stock (in Nos.) from SAP
Rejection Consider the RJ10 value
Available stock Opening stock + GRN - Consumed stock
6) Proposal for project targets
Plan for Inventory Storage Truck loading Kanban

4C Proposal
reducing TAT level cal. @ space cal. @ pattern Calculation
DICV DICV proposal
System Readiness
Since BRS is under progress ICR is SAP T-code SE16 is used for sending consumption
trigger to supplier. As per trigger supplier will be ready with FG parts in DICV pallets at their
end.
Prepare plan for reducing TAT

Truck turnaround for plat 2 is found to be optimum but for plant 3 i.e. Thiruvallur plant the
TAT is very high and on continuous observation it was observed that ideal time after
unloading of empty pallets was very high (around 8 hours) thus with implementation and
increasing lop quantity supplier had been suggested to keep the dispatch goods ready at
dispatch area in fully packed condition so that loading process can be done faster and thus
TAT can be reduced drastically.
Inventory level calculation @ DICV
After implementation of JIT total inventory for Seoyon-E-Hwa parts reduces from 24773 to
9618. As a result of inventory reduction inventory cost reduces from 2695110.57 to
2385207.04 resulting in saving of 11.5%.

Storage space calculation @ DICV
After JIT implementation inventory storage space reduces from 248.86m2 to 213.24m2.Total
area saving of 35.62m2 is done. This results in cost saving of 14 lacs almost 14.31%.
Truck loading pattern proposal
2 trips per day for plant#2 and loading pattern is shown below
For plant#3 1 trips per day is shown below with pallet loading pattern is shown below

4C proposal
1. Container
2. Container presentation
3. Consumption
4. Container delivery internal logistics
Kanban calculation
Kanban calculation is done keeping 3 days of loop quantity for plant#2 and 4 days of loop
quantity for plant#3.Although we have tried to send e-trigger rather than physical Kanban
cards to avoid the loop holes in the system after fixing the part quantities with IPL team
(based on consumption stock on daily basis).
Quantify KPI targets
Key performance indicators (KPI) are a set of quantifiable measures that a company uses to
gauge its performance over time. These metrics are used to determine a company's progress
in achieving its strategic and operational goals, and also to compare a company's finances and
performance against other businesses within its industry.
In this project inventory cost saving of 3lacs is calculated and space saving of 35m2 is
calculated which brings cost saving of 14lacs.

SWOT analysis on Implementation of End to End Project
Strengths Weakness
1. Manageable stock at DICV as per 1. Dependence on internal Kanban

production daily peak volume demands adherence is a major issue. Loss and
misplacement of physical Kanban
2. After JIT Human/BOM errors will
reduce because as physical qty will be cards and for some parts physical cards
used to send triggers are not present. There is mismatch of
Kanban card quantity and pack
3. No physical kanban cards required quantity of parts.
thus no tension of lost or missed cards
Opportunities Threats
1. JIT helps in inventory reduction and 1. If there is sudden increase in daily

storage space reduction resulting in peak volumes then there is a possibility
major cost saving for company. If of line stoppage and production delay.
expanded to other suppliers will add to
companys turnover. 2. In case of line stoppage there is
manual material movements without
Kanban cards

CONCLUSION
The JIT production process means inventory levels are kept to a minimum. A low inventory
figure on the balance sheet means a higher inventory turnover ratio, making the company
look more efficient. A company with little to no inventory has a much higher ratio than a
company with equivalent COGS expenses that utilizes a more anticipatory production
strategy. High inventory turnover ratios are considered a good sign of operational efficiency,
effective purchasing management, and productive use of advertising and promotional
campaigns aimed at generating sales.

Conclusion and Recommendations

References :
http://wiki-int.e.corpintra.net/display/artikel/Kanban-Simulation+-
1
+Introduction+to+Pull+Systems
2 http://wiki-int.e.corpintra.net/display/artikel/Pull-+Produktion
3 http://wiki-int.e.corpintra.net/pages/viewpage.action?pageId=35728639
4 http://wiki-int.e.corpintra.net/display/artikel/Signal-Kanban
5 http://wiki-int.e.corpintra.net/display/glossar/Pull+Prinzip
6 http://wiki-int.e.corpintra.net/display/glossar/JIS
7 http://wiki-int.e.corpintra.net/display/artikel/Methode+Milkrun
8 http://wiki-int.e.corpintra.net/display/artikel/LOG- Standards+Idealband+Halle+9+W67
9 https://team.sp.wp.corpintra.net/sites/00116/tos/TOSplus%20Dokumentenbibliothek/TOS+
%20Comic%20Simple%20Show%20englisch.wmv
10 http://www.investopedia.com/terms/e/end-to-end.asp
11 https://en.wikipedia.org/wiki/Just-in-time_manufacturing
12 http://www.toyota- global.com/company/vision_philosophy/toyota_production_system/

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Daimler India Commercial Vehicles 2017

SUMMER INTERNSHIP PROJECT REPORT

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR

UNDER THE GUIDANCE OF

Dr. Pramod Shetty

KJ Somaiya Institute of Management Studies and Research

Internship Report || Swati Singh (PGDM Executive) Page 0

JIT Implementation for Seoyon-E-Hwa

Daimler Trucks Asia

UNDER THE GUIDANCE OF

Mr. Anand Zalke Dr. Pramod Shetty

Senior Manager Professor (Operations)

Material Handling Engineering KJ Somaiya Institute of Management

Internship Report || Swati Singh (PGDM Executive) Page 1

Name: Swati Singh

Internship Report || Swati Singh (PGDM Executive) Page 2

Certificate from summer project guide

THIS IS TO CERTIFY THAT SWATI SINGH, STUDENT OF THE PGDM-EXECUTIVE

FACULTY GUIDE CORPORATE GUIDE

Dr. Pramod Shetty Mr. Anand Zalke

Professor (Operations) Senior Manager

Internship Report || Swati Singh (PGDM Executive) Page 3

Internship Report || Swati Singh (PGDM Executive) Page 4

Internship Report || Swati Singh (PGDM Executive) Page 5

Work packages under JIT implementation

End to End process flow

Internship Report || Swati Singh (PGDM Executive) Page 6

Bearing in mind previous I am using this opportunity to express my deep gratitude

I perceive this opportunity as a big milestone in my career development. I will strive

Internship Report || Swati Singh (PGDM Executive) Page 7

I as an intern worked in MHE department for a period of 15 weeks. My department is

The topic of my summer internship was JIT Implementation for Seoyon-E-Hwa

Internship Report || Swati Singh (PGDM Executive) Page 8

Internship Report || Swati Singh (PGDM Executive) Page 9

Foundation 1969 2008

Internship Report || Swati Singh (PGDM Executive) Page 10

Company Profile of DICV

Internship Report || Swati Singh (PGDM Executive) Page 11

Medium Duty (GVW 915T)

MD914 R MD1214 MD IN-POWER 1214RE

Heavy Duty (GVW 1637T)

1617R 2523R 3123 R

Tippers (GVW 12-31T)

1217C 2528CM 3128C

Internship Report || Swati Singh (PGDM Executive) Page 12

Tractors (GVW 40-49T)

9T School Bus 9T Staff Bus FUSO Fighter

Internship Report || Swati Singh (PGDM Executive) Page 13

FUSO Canter LIFT FUSO FJ FUSO Fighter

Sales of domestic vehicles (all variants) crossed 45,000

Internship Report || Swati Singh (PGDM Executive) Page 14

Internship Report || Swati Singh (PGDM Executive) Page 15

Internship Report || Swati Singh (PGDM Executive) Page 16

Organization of Supply Chain Management

The Supply Chain Management department of DICV is organized as f

L3 SM Vehicle L3 SM L3 Logistics L3 Logistics L3 SCM

Frame, Chassis MDT Engine

Internship Report || Swati Singh (PGDM Executive) Page 17

Role of MHE Team

2) Process Description-Logistics infrastructure planning and implementation

Internship Report || Swati Singh (PGDM Executive) Page 18

3) Process Description - Packaging concern resolution process

4) Process Description - Packaging design and development

Internship Report || Swati Singh (PGDM Executive) Page 19