INTRODUCTION:

In todays world where environment protection and fossil fuel exhaustion are
maor concerns and where customers has to face constant upward price of fuel
!vehicles usin" alternative sources of ener"y are seen as a via#le option$ There
is lar"e untapped potential in this cate"ory to cover the need for cheap and
environment friendly transportation facilities$
In the current scenario electric vehicles are "ainin" popularity #ut there are
many factors which are actin" as hindrance to their popularity$ The main
pro#lems with electric vehicles are: low milea"e with each rechar"e! very lon"
char"in" time! speculations a#out pullin" power! service and spare part
inade%uacy$
T&' CO()*N+:
Neptune Bikes has come up with a hy#rid #i,e! which uses electricity as
primary fuel source and small %uantity of fossil fuel li,e ,erosene to resolve the
a#ove pro#lem related to electric #i,e$
The product is named -O which is a short form for .-reen Oxy"en/ which
represents the environment friendliness and competitiveness of the hy#rid
scooter$
)RIORITI'0 *ND -O*10 O2 CO()*N+:
Customers in the .#ottom of the pyramid/
)resence in International developin" mar,ets
*n effective supply chain mana"ement
)rofita#le #usiness model throu"h mass production
0olution to depletin" fossil fuel and risin" "lo#al fuel price
0olution to "reen house "as emission from automo#iles and "lo#al
warmin"
3I0ION 0T*T'('NT:
* population empowered with power of mo#ility and care for nature$
(I00ION 0T*T'('NT:
To #uild a company synonymous with a "enre of vehicle which provide
transportation to common man at afforda#le cost with no harm to environment
and attain financial o#ectives of the promoters$
4
5U*1IT+ 0T*T'('NT
6e are committed at all levels to achieve hi"h %uality in whatever we do!
particularly in our products and services which will meet and exceed customer7s
"rowin" aspirations throu"h:
Innovation in products! processes and services$
Continuous improvement in our total %uality mana"ement systems$
Teamwor, and responsi#ility$
8*0IC 8U0IN'00 CONC')T O2 N')TUN' *UTO0
The o#ective of the company is to develop innovative #i,e models on platform of
electric #i,es which overcome constraints of electric #i,es currently availa#le in
the mar,et and #ecome complete alternative to petrol #i,es$
The new series would cover followin" shortfalls of electric #i,es:
49 Low mileage: The hi"her end electric #i,es availa#le today has an
avera"e milea"e of around :; ,m after each rechar"e which ma,es it
infeasi#le for lon" distance travel$
<9 High Battery Recharge Time: The electric #i,es availa#le in the mar,et
today have a #attery rechar"e time of => 4<hrs$ Rechar"in" the #i,es for
such lon" hours after coverin" :;>?;,ms ma,es it incompetent related to
petrol #i,es which need to #e refueled on an avera"e of @;;,m after
every full tan,$
A9 Low service and spare parts availability : 'lectric #i,es currently
doesnt have a wide service #ac, up li,e petrol #i,es
B9 Frequent power failures in India poses a challen"e to electric #i,es for
rechar"in" purpose$
The company plans to capture su#stantial mar,et share from petrol and electric
#i,es #y mer"in" the "ood factors of electric and conventional petrol #i,es and
formin" a hy#rid #i,e which is a new concept$
T&' )RODUCT
<
SPECIFICATIONS
)ower train
8attery )ac,: &i"h 'ner"y 1ithium

(otor: A>phase *C 8rushless Induction motor
Tor%ue: :; l#>ft C ; to 4!@;; rpm
Transmission: 0in"le speed
Chassis
0uspensionD2ron
t:
Ohlins BAmm inverted for,E fully adusta#le! B$@>in travel
0uspensionDRear
:
Ohlins 0in"le shoc, wDpi""y#ac, reservoirE fully adusta#le!
B$@>in travel
8ra,esD2ront: Dual 8rem#o A4;mm discE 8rem#o radial>mount for"ed B>
piston calipers
8ra,esDRear: 8rem#o <<;mm discE sin"le>piston caliper
6heelsDTiresD2ro
nt:
(archesini for"ed aluminum A$@F x 4=F! 4<;D=;GR4= > race
Compound
6heelsDTiresDRe
ar:
(archesini for"ed aluminum :$;Fx4=F! 4H;D@@GR4= > race
Compound
Tar"et
)erformance
A
Top 0peed: =; ,mDhr
Ran"e: ?; ,ms per char"e Iest$ ')* drive cycle9
Rechar"e Time: Under 4< hours
Interactive
2eature:
*dusta#le re"enerative rear wheel #ra,in"
0ervice A free services
T&' (*RJ'T
)opulation in low and middle income "roup with a salary a#ove Rs B;;;:>
)opulation who owns a #i,e from this population:
There are nearly a million people earnin" a#ove Rs B;;; per month in India$ The
maority of them althou"h can afford a conventional petrol or electric #i,e deter
from ownin" one #ecause of hi"h fuel price of petrol #i,es and constraints of
electric #i,e$
There is a lar"e customer #ase of low income and middle income "roup availa#le
in India who come in the #ottom of the pyramid in India who are potential
customers for our product$
-lo#ally! the company sees a hu"e potential in all the developin" mar,ets across
the "lo#e$
2IN*NCI*1 3I*8I1IT+:
The companys aim of reachin" the low and middle income I8ottom of the
pyramid9 mar,et is au"mented #y its tie up with rural #an,s and "overnment
#an,s to provide loan with an '(I rate of Rs :@;>=;; per month$ The advanta"e
for "overnment is the empowerment of aam admi with no #urden on
environment$ The via#ility of loan from #an,s point of view needs to #e wor,ed
out$
'CONO(IC 3I*8I1IT+:
Throu"h effective supply chain mana"ement the company can utiliKe low cost
supply sourcin" from across the "lo#e$ This strate"y in addition to mass
production can cover the R L D and production cost there #y ma,in" it an
economically via#le proect$
The company can avail "overnment "rants and incentives for the development
and populariKation of an environmentally friendly product which helps in
empowerin" rural population a"ainst the primitive transportation infrastructure
B
of the country$ 8efore implementin" a testin" face is launched where we ta,e a
customer survey of li,in" and attitude of people to this product and we would
desi"n our product accordin"ly$
2IN*NCI*1 D'T*I10
The cost of proect is estimated at Rs 4; Crores$ This is proposed to #e financed
to the extent of A Crore #y means of a term loan from 8an,s$ The promoters are
experienced in the field and are capa#le of operatin" the new venture
successfully and they will #rin" in : Crores as their contri#ution$ Rs 4 Crore will
#e availa#le as 0tate -overnment su#sidy$ The unit proposes to provide
employment to @< persons$ The proposal is technically feasi#le and economically
via#le$ In mass production! the #asic price of the product will #e low and can
provide a "ood profit mar"in$
Cost of Production and Profitability
)roected profita#ility statement has #een prepared for the first A years after the
commencement of production and is %uite promisin" for a #ri"hter future$ The
statement has #een wor,ed out on the #asis of the followin" assumptions$
The details of sales realiKation are "iven with the concern that possi#le
fluctuations in the sellin" price of products are not ta,en into
consideration$
It is expected that any increase in the cost of raw materials! consuma#les
L pac,in" materials will #e offset #y correspondin" increase in the sales
revenue$ &owever! the sellin" prices and the cost of various inputs are
#ased on the prevailin" mar,et rates$
The unit is expected to wor, for <?@ days on a sin"le shift #asis!
dependin" upon the demand and response from the mar,et the increase
in production wor, can #e done #y dou#le shift #asis$
The unit is expected to wor, =; M of the installed capacity durin" the first
year and definitely it will #e increased to 4;;M step #y step in forth
comin" years$
2ull salaries and wa"es have #een ta,en into amount durin" the first year
of operation$ 6a"es and salaries will #e increased #y @ M per annum to
provide for annual increment! 'mployee #enefits will #e ta,en at 4@M of
wa"es and salaries$
Repairs and (aintenance are ta,en as <M and insurance as 4 M of
#uildin" and plant L machinery$
In order to meet any unforeseen oscillation in any of the direct expenses!
due to the economy recession and other possi#ilities! other than raw
materials L consuma#les! a contin"ency provision at the rate of @M is
included in the cost$
@
Depreciation will #e char"ed in the profita#ility statement under the
strai"ht line method$ 8ut for the purpose of computation of income tax !
ade%uate adustments will #e made in the computation so that
depreciation is char"ed under the written down value method $
*dministrative overhead is wor,ed out at BM of sales revenue$
0ellin" overhead includin" commission is wor,ed out at 4<M$
Interest on term loan has #een wor,ed out at 4?M on the amount
outstandin"$
Interest on wor,in" capital loan is wor,ed out at 4?M$
Company Balance sheet
Liabilities Assets
Sources of
Funds
Land & Building 3,75,00,000
Owner's Fund Plant ac!iner" #,50,00,000
$%uit" S!are &a'ital 3,50,00,000 &urrent Assets 7,50,00,000
S!are a''lication
(one"
75,00,000 Long ter(
in)est(ents
*#,50,00
0
Preference s!are
ca'ital
#,00,000,00 S!ort ter(
in)est(ents
*#,50,00
0
+eser)es & sur'lus ,,#5,00,000
Loan Funds
Secured Loans #,#5,00,000
-nsecured Loans ,,50,00,000
-ses of Funds
&reditors 3,,#,50,000
Bill Pa"able *#,50,000
.otal ,5,00,00,00
0
.otal ,5,00,00,000
:
Cash Flo
The cash flow is sufficient even after withdrawal #y the investors as dividend at
the rate of @M in the second year and 4;M thereafter! to ensure the repayment
of loan and to plou"h #ac, a reasona#le amount for the "rowth of the unit$
C*0& 21O6 0T*T'('NT
Inflow
0hare issued :!<@!;;!;
;;
1oan received A!=@!;;!;
;;
Cash from operation 4!<@!;;!;
;;
TOTA! 44!<@!;;!
;;;
Outflow
)urchase of 1and A!=@!;;!;
;;
)urchase of
(achinery
<!@;!;;!;
;;
Investment 4!<@!;;!;
;;
Net Current *ssets A!=@!;;!;
;;
Iincludin" cash
#alances9
TOTA! 44!<@!;;!
;;;
COST S"EET
(aterial <!4?!=@!;;;
Direct 'xpenses 4@!;;!;;;
2actory overhead expenses 4!;;!;;;
Rent <<!@;!;;;
0alaries L wa"es :A!;;!;;;
Transportation :!=@!;;;
*dvertisement =@!;;!;;;
8rand *m#assador A!;;!;;;
Commissions 4@!;;!;;;
)rofit 4!;@!;;!;;;
0ales @!<@!;;!;;;
B#EA$ E%EN ANA!&SIS
=
Fi/ed $/'enses 0 +s 1,,#5,000
&ontribution 0 Selling 2 3ariable $/'enses
0 3*,00,431 2 3*,00,000 0 431
B$P 0 Fi/ed $/'enses 5 &ontribution 0 1,,#5,000 5 431
0 ,1,55, units
)RODUCT D'3'1O)('NT 0T*-'0
4$ N ' Sta(e ) This sta"e includes the ma,in" of the prototype of the
product$ The specifications of various parts are as decided and necessary
chan"es are made su#se%uently until desired$
<$ O ' Sta(e ) 8ased upon the prototype desi"n in the previous sta"e! a
wor,in" model is assem#led$ The products is analysed for various factors
and is then su#ected to many tests
A$ 0ample )roduction: * sample #atch of the product is assem#led and the
various production capa#ilities are accessed and maor production
activities are chosen
B$ !ine * +ass Production: Initially line production is adopted$ 6hen the
company enters the consecutive sta"es of development! mass production
can #e chosen$
O)'R*TION*1 *CTI3ITI'0 L
C*)*CIT+ )1*NNIN- )ROC'00
Current capacity of the plant is 4;;; vehicles per month$ It includes various
process of forecastin" futuristic demand and then decidin" what resources will
#e needed to meet that demand$ *t )lannin"! operations decision re"ardin" the
total num#er of vehicles to #e produced and the product mix it should have is
decided$ The role will #e critical in future when new models and variants would
#e introduced into the mar,et$ The decision re"ardin" Pwhat and how much to
produceQ would #e ta,en #ased on the followin":
The competitors previous month sales R This will "ive the total
mar,et taste and preference for the types of electric vehicles$
'n%uiries "enerated throu"h showroom wal, ins and telephone are
clearly noted down in the customer data#ase$ The customers
feed#ac, is considered as the steppin" stone to "reater success$
The complaints received are scrutinised and necessary
modifications are #rou"ht a#out in the product$
Steps In,ol,ed In Capacity Plannin(
4$ 2orecast future demand! includin" the li,ely impact of technolo"y!
competition! and other events
<$ Translate these forecasts into actual physical capacity re%uirements
?
A$ -enerate alternative capacity plans to meet the re%uirements
B$ *nalyKe and compare the economic effects of the alternative plans
@$ Identify and compare the ris,s and strate"ic effects of the alternative
plans
)hases Of Technolo"ical Decisions
+a-or technolo(ical choice )
3arious options re"ardin" what technolo"y has to #e adopted are decided$ The
maor technolo"ical choice had to #e made re"ardin" the type of #atteries to #e
used$ The choice had to #e made from lead acid! lithium ion and ferrous oxide
#atteries$ 'ach one had its own pros and cons$ The innovative technolo"y was
licensed from Sapan$ The product desi"n was outsourced from China$ (ost of the
plastic #ody parts were shipped from 0in"apore considerin" the %uality and cost
advanta"e$ 0eparate RLD department would #e set up in future for facilitatin"
an internal effort to develop the technolo"y$
+inor technolo(ical choice
Initially #atch production was chosen for producin" the vehicles$ 1ater on! as
demand pic,s up! continuous production would #e implemented$ 8elt conveyor
system was put up in the main assem#ly department as this would support #oth
#atch and continuous production$
Specific'component choice
*ll the maor components are imported from 0in"apore$ These components are
desi"ned for easy assem#ly$ *t this initial sta"e! the de"ree of automation is
very minimal$ It is ust restricted to the conveyor system in the main assem#ly
section$ In #oth (ain assem#ly and 0u# assem#ly! every process is manual$ The
material handlin" is throu"h customiKed trolleys to carry the components from
various sections$ 1ater on! when the operation is converted to mass production!
ro#otics and other automated material handlin" systems can #e introduced$
Process'flo choice
'ach vehicle will have different set of assem#lies$ 8ased on the assem#ly
drawin"s the assem#ly charts are prepared for every vehicle$ In addition to this!
process flow chart is prepared #y se%uencin" all the operations involved to
reduce material handlin" and stora"e cost$ In the factory! line flow layout is
implemented as they have faster processin" rate! lower inventories and less
unproductive time lost to chan"e overs and material handlin"$ The maor
operations se%uences involved are:
H
D'0I-N )ROCUR' INCO(IN- IN0)'CTION
0TOR'0
Time 0tudy
In the main assem#ly! the time re%uired for each activity is decided #y the
analysts accordin" to industrial standards$ Thus the followin" pre determined
data approach is #ein" followed! ta,in" into account the productivity rate and
other constraints$ The normal time is fixed #y trained wor,ers of the company
and has #een recorded$
4;
0l
no
6or, element 0D 0elect
Time
Isec9
0amle
0iKe
)erformanc
e 2actor
Normal
Time
Isec9
4 Ta,in" 2rame ;$;A;@ <@ 4; 4$;@ <:$<@
< &andle #ar
*ssem#ly
;$;4=4 B; 4; ;$H@ A?
A 2or, L
0uspension
*ssem#ly
;$;<<: 4B@ 4; ;$H; 4A;$@;
B 6heel *ssem#ly
with 8ra,es
;$;<B4 <A; 4; 4$4; <@A
@ 6irin" &arness
Connection
;$;AA@ 4;; 4; ;$H; H;
: &eadlamp
*ssem#ly
;$;<B@ :A 4; 4$4; :H$A;
= (otor! 8attery!
Controller switch
panels
;$;44? 4;< 4; 4$;@ 4;=$4
? 0eat *ssem#ly ;$;<:= =@ 4; ;$H@ =4$<@
H Indicator L
Tool#ox
;$;A44 B@ 4; 4$;@ B=$<@
4; 0ide panels L
(ain #ody
;$;<=? =@ 4; ;$H@ =4$<@
0U8 *00'(81+ )RODUCTION )RODUCT IN0)'CTION
D'0)*TC&
)1*NT 1*+OUT
The plant layout is made to #e hi"hly flexi#le ena#lin" the smooth product flow
across various departments within the factory$ The plant layout is desi"ned so as
to o#tain the maximum productivity from the men and the machines$
SO8 D'0I-N I00U'0
In the initial phase! the total wor,force of @< employees are maintained which
can #e extended till =@ or more employees after the expansion$ There are @
mana"ers! namely 2actory (ana"er! *ssem#ly (ana"er! *rea 0ales (ana"er!
*rea 0ervice (ana"er and 5uality (ana"er$ In the lower level! there are @
supervisors and 4@ operators who wor, in the shop floor in the shop floor and the
others form the finance and mar,etin" team$
The factory is e%uipped with all necessary safety features$ 0pecial care has #een
"iven for wor,er safety$ *ll the wor,ers are insured and strictly instructed to
wear safety "ad"ets while on wor,$ 'fforts are #ein" made to ,eep the
productivity hi"h$ 6henever re%uired! the wor,ers are "iven trainin"$
.OB /ESC#IPTION
44
01A!IT& +ANA2E#
'nsure compliance to the companys %uality control manual$
Jnowled"e of ))*)! 2('*! (0* L Control )lan$
)ro#lem 0olvin" Techni%ueDCounter (easure$
In>process 5uality control activitiesDReection! Rewor, *nalysis and
*ction$
Customer 5uality for handlin" customer compliant$
'ducation: 8'D8T'C& mechanical prefera#ly with (8*
'xperience: A to @ years experience in related field$
0hould #e a#le to withstand hi"h level of pressure from customer end and
should act swiftly$
* "ood communication s,ill is hi"hly re%uired$
FACTO#& +ANA2E#
*ccurate coordination #etween the &ead office and the 2actory
Involved in the monthly meetin"s #etween mar,etin" and production
(aintainin" accurate levels of Inventory with the o#ective of ,eepin"
minimal stoc, levels
'nsurin" the proper turnaround time of executin" orders within the
stipulated delivery time to avoid delays and thus payment penalties
3endor development in coordination with the )urchase Department and
"ood ,nowled"e of *utoCad
'nsure availa#ility of spare parts at all times
'nsure service contracts are renewed on time
'ducation: 8'D8T'C& mechanical en"ineerin"! ,nowled"e on *UTO C*D is
a must$
'xperience: ? to 4; years
ASSE+B!& +ANA2E#
(ana"in" the production of assem#ly components$
Optimum utiliKation of all resources$
1eadin" the C2T$
(ultis,illin" of en"ineers and the technicians to eliminate dependency$
'nsurin" "ood &ouse ,eepin" and 0afety in the shop throu"h daily shop
rounds$
Jnowled"e of Critical operations$
-ood ,nowled"e in different types of weldin" L fa#rication processes$
'ducation: 8'D8T'C& mechanical en"ineerin"
'xperience:A to @ years
A#EA SA!ES +ANA2E#
Channel (ana"ement
Dealer *ccount (ana"ement with flair of 0ales Tar"et achievement$
Connect with all the area dealers and deal with all the pro#lems$
'xcellent communication s,ills are re%uired with natural finesse to
convince customers$
-uidin" to dealers and ensurin" their profita#ility
'ducation: 8'D8tech mechanical en"ineerin" with (8* Imar,etin"9
'xperience: @ to ? years in related field$
A#EA SE#%ICE +ANA2E#
(onitor and support service activity at Dealer Networ,$
&andlin" Customer Complaint
4<
Defect dia"nosin"
(onitor ! Control and Improve service performance
)rovidin" Technical support to dealer networ,
0pares )arts mana"ement L support to dealer networ,
'ducation: 8'D8T'C& any field
'xperience: @ to = years in after sales service of an automo#ile company
&R )O1ICI'0
#EC#1IT+ENT PO!IC&
Neptune *utos is an e%ual opportunity employer$ 0election is strictly #ased
on experience and past performance$ Natural attrition is usually ta,en care of #y
promotions and horiKontal movements within the or"anisation to provide career
opportunities for our employees$ Occasionally! specific s,ill>sets may warrant
lateral recruitment$
3O#$ C1!T1#E
The wor, culture supports and enhances our #rand$ The -O #i,e #rand si"nifies
excitement$ It strives to inspire confidence throu"h excitement en"ineerin"$
The culture is #uilt on core values of learnin"! innovation! perfection! speed and
transparency$ 2acilitative leadership style helps in developin" leaders at all
levels and esta#lishes accounta#ility$
CO+PETENC& B1I!/IN2
The company has a very flat or"anisation structure with three mana"ement
levels$ 'ach level represents a specific role and hence needs relevant
competencies$ Competency #uildin" at Neptune *uto is a com#ination of
development for current and future roles$ To cater to companys futuristic needs
interventions li,e development centres! need>#ased trainin" and o#>rotation
plans are used$ 6e use different methods of impartin" trainin" li,e lectures!
"roup>discussions! role>plays! seminars! out#ound trainin"! assi"nments and on>
the>o# tas,s$
CO+PENSATION P"I!OSOP"&
Neptune *utos strives to #e amon"st the top %uartile in our compensation
structure$ Competence and performance are the ,ey drivers of the compensation
policy$ * si"nificant part of the compensation is in the form of varia#le pay lin,ed
to the individuals and the or"anisations performance
2*CTOR+ O)'R*TION0
)roduction )lannin" *ctivities
IN%ENTO#& +AN2E+ENT
The level of inventory is always ,ept at a minimum as it re%uires a temporary
investment$ The inventory cost or carryin" cost is calculated to #e <; percent$
4A
The avera"e value of total inventory is <;M of sales then the avera"e annual
cost to hold inventory is BM of total sales$
COSTIN2 O1T A !OT SI4IN2 PO!IC&
The company needs to have a proper lot siKin" policy while orderin" the various
assem#lies from different countries$ 'ach part needs to have different lot siKe
orderin" policy to minimiKe the complexity involved in mana"in" the inventory
and to prevent the low inventory turnover$ 0afety stoc, of <@; #atteries is
maintained$ 0hown #elow is the methodolo"y involved in the framin" of a lot
siKin" policy for procurin" the #atteries from the supplier$
*nnual Demand! D T 4?; U @< T HA:; units
Cost of placin" order with supplier! 0 T Rs B@;;
&oldin" cost! & T ;$<@ U 0upplier Char"es T ;$<@ U Rs :;;; T Rs 4@;;
'conomic Order 5uantity! 5 T <D0& T <U HA:; U B@;;4@;; T <A= units
Total *nnual cycle inventory cost! C T &5<V DI095 T <A= U Rs
4@;;<VHA:; U Rs B@;;<A=
T Rs A!@@!B=<
Time #etween orders! T8O T 'O5 U A:@D T <A= U A:@HA:; T H days
D'(*ND 2OR'C*0TIN- L TR'ND *N*1+0I0
The mar,et for electric vehicles is constantly expandin" and thus the sales of our
vehicles are also showin" an upward trend$ &ence a trend adusted exponential
smoothin" is used to forecast this demand series which has an increasin" trend
over a period of time$
Capacity of production T 4;;; vehicles
Rate of production T B vehicles W hour
6or,in" hours T = hours W day
*ctual monthly production T <? X <: T =<? vehicles

(ONT& 0*1'0 0(OOT&'
D
*3'R*-'
TR'ND
*3'R*-'
2OR'C*0T 2OR'C*0T
'RROR
; :<: :<:$;; 4;$;;
4 :?; :BB$?; 44$=: :A: BB
< :@B :@:$;@ 44$:: :H4$=: >A=$=:
A =<< :=?$@= 4A$?A ::@$:: @:$AB
B =@? =;@$@< 4:$B@ =A@$?A <<$4=
@ =AH =<@$A? 4=$4A ==B$B@ >A@$B@
: =?: =@4$<4 4?$?= =@:$4A <H$?=
4B
TOT*1 5U*1IT+ (*N*-'('NT IT5(9
TR*ININ- L I()1'('NT*TION
0ince the company is in its initial sta"e! reducin" operatin" cost and improvin"
customer satisfaction and product %uality is a prere%uisite$ (oreover
implementin" T5( would increase the productivity! in addition to the decrease in
scrap and rewor, defects$
The implementation of T5( was outsourced to a private company! ((5C$ Their
primary tas, was to teach the employees the techni%ues of T5( and
familiarise them with the implementation process of T5( includin"
pro#lem solvin" techni%ues and the #asic T5( tools for pro#lem
identification and analysis$ Trainin" covers T5( #ac,"round! internal and
external customer and supplier relationships! %uality! process variation!
and measurement$ They customiKed the trainin" to the companys needs$
The followin" T5( elements #ased on measurement instruments were identified
as follows
4$ Top mana"ement commitment
<$ Customer focus
A$ 0upplier %uality mana"ement
B$ Desi"n %uality mana"ement
@$ 8enchmar,in"
:$ 0)C usa"e
=$ Internal %uality information usa"e
?$ 'mployee empowerment
H$ 'mployee involvement
4;$ 'mployee trainin"
44$ )roduct %uality
4<$ 0upplier performance
0)C > 0tatistical )rocess Control
The company is plannin" to o#tain certification of the International Or"aniKation
for 0tandardiKation II0O9 H;;4 and the environmental mana"ement standard!
I0O 4B;;4$
The ultimate o#ective of the company is to attain the hi"hest customer
satisfaction and to ensure profita#ility #y supplyin" exceptional products in
terms of %uality! cost! and delivery$ 2rom the company perspective! the use of
0)C is considered as a "ood practice$ *de%uate trainin" is provided for the
mana"ers! en"ineers and operators$ 5uality control department is the
department which is responsi#le to ta,e action timely and find out causes and
counter measure when out of control condition occurs$ Their duties also include
overall coordination and implementation of statistical techni%ues$ (anufacturin"
department is assi"ned to identify process parameters for 0)C! review and
calculate control limits accordin" to schedule$ It uses e>0)C software to collect
data! monthly review data! ma,e evaluation of new comin" products and
machines$ The system is developed for multiple users! as such it can #e
accessed #y production and mana"ement site$ This system also supports full
4@
security of the underlyin" data#ase$ In addition! password settin" is availa#le to
protect confidential data$ 2or further improvement! the company plan to up"rade
it system to 0)C online and provide advance trainin" for wor,ers$ &owever! the
main limitation of e>0)C is that the system provides intelli"ent device Ialarm9 to
fla" the point out of control data #y the form of control charts$ 0hown #elow are
some of the control charts and how they have #een made use of in the
or"anisation$
1SA2E OF 5 and # 6 C"A#TS
&ere the incomin" inspection of the front for, diameter of the vehicle is shown$
The for, diameter is really critical for the company and each time a lot arrives!
random samplin" would #e done to chec, its diametrical accuracy and its
conformation to other specifications$ The re%uired diameter is A;$@ mm with a
tolerance of V;$;;@mm to >;$;;@mm$ Data from five samples appear in the
accompanyin" ta#le$ The sample siKe is B$ The statistical control of the process is
determined$
OBSE#%ATIONS
0ample
Num#er
4 < A B R U
4 A;$@;4B A;$@;<< A;$@;;H A;$@;<= ;$;;4? A;$@;4
?
< A;$@;<4 A;$@;B4 A;$@;<B A;$@;<; ;$;;<4 A;$@;<
=
A A;$@;4? A;$@;<: A;$@;A@ A;$@;<A ;$;;4= A;$@;<
:
B A;$@;;? A;$@;AB A;$@;<B A;$@;4@ ;$;;<: A;$@;<
;
@ A;$@;<4 A;$@;A: A;$@;4B A;$@;<= ;$;;<< A;$@;<
B
*3'R*-
'
;$;;<4 A;$@;<
A
Source: Incomin" 5uality Inspection Data

2or constructin" R chart!
UC1
R
T D
B
R T <$<?<I;$;;<49 T ;$;;B=H mm
1C1
R
T D
A
R T ;I;$;;<49 T ; mm
2or constructin" U chart!
UC1
U
T U V *
<
R T ;$@;B< mm
1C1
U
T U R *
<
R T ;$@;4< mm
The *
<
! D
A
and D
B
value is the factors for calculatin" three si"ma limit for U and R
charts
4:
From the above two charts it is clear that process of inspecting the fork diameters is in control
and the parts received are of required specification. The supplier is despatching excellent
quality parts.
1SA2E OF p' C"A#TS
The p chart is commonly used to know in the incoming inspection department if the supplies received
are defective or not. After checking if the bulbs received are fused or not, we plot p charts for keeping
a check on the proportion of defective supplies received. For inspection is by random sample of 5
bulbs is taken for each month. The observations for the first six months are shown below
0*()1' NU(8'R NU(8'R O2
D'2'CTI3' 8U180
0*()1'
)RO)ORTION
D'2'CT0
7 : ;$;4<
8 B ;$;;?
9 @ ;$;4;
: : ;$;4<
;
<
A
=
;$;;:
;$;4B
Total Defects A4
Source: Incomin" 5uality Inspection Data
) T ;$;4;A! !ig p " .#5$5, %&'
p
" .$#($5, '&'
p
" .5)(5
2rom the p chart it is seen that suppliers of the #ul# received are ensurin"
enou"h %uality in their dispatch and the process is in control$
1SA2E OF c 6 C"A#T
6hen the each of the vehicle rolls out after its final assem#ly! it is ta,en for road
test$ 2inal product testin" is really important for the company to avoid the
external failure cost$ If the customer identifies any defect in the product after its
delivery! it will affect the companys reputation and values in addition to
dissatisfied customers$ Usa"e of c Chart has aided the reduction in the warranty
cost$ *fter the final assem#ly! it is found that the num#er of defects avera"ed to
a#out = defects when the process functions at < si"ma level and when it is
su#ected to road test$ Therefore!
UC1
c
T c V K YC T = V < Y= T 4<$<H
1C1
c
T c > K YC T = > < Y= T 4$=4
The num#ers of defects found in the first <; vehicles produced were found to #e:
@! :! 4;! ?! 4<! =! @! :! ?! =! @! H! 4;! B! @! H! 44! ?! :! @$
4=
From the c chart, it is evident that the defects per vehicle assembled is under control and can
be corrected before showroom delivery.
)R'3'NTI3' (*INT'N*NC' 0C&'DU1'
In the main assem#ly section! a wee,ly preventive maintenance schedule is
followed to avoid unanticipated #rea, down$ )reventive maintenance is done to
the conveyor system$ The various parts of the #elt conveyor are chec,ed!
cleaned and lu#ricated to ensure its smooth functionin"$ The followin" are the
various tas,s involved and their respective time ta,en
01
NO$
IN0T$ 02T$
COD'
T*0J
COD'
T*0J D'0CRI)TION DUR*TION
&OUR0
4 C1- R 6 )(';=; Cleanin" the #elt <$;;
< C1- R N )(C;@4 Chec,in" the swayin" of #elt ;$@;
A C1- R N )(C;@< Chec,in" the housin"
arran"ement
;$A;
B C1- R & )(1;AB 1u#rication and inspection of
motor
;$A;
@ C1- R & )(1;A@ 1u#rication of "ear ;$4@
: C1- R & )(1;A: 1u#rication of idler rollers ;$B@
= C1- R & )(1;A= 1u#rication of drive sproc,et ;$4@
? C1- R S )(*;@B *dustin" the s,id plate ;$4@
TOTA! "O1#S :=>>
*ourly wage of worker " +s ,5
Thus preventive maintenance cost involved per week " ,5 - # " +s $
2OUR 0I-(* )ROC'00 C*)*8I1IT+ T'0TIN-
The factory has an avera"e turnaround time of 4:$A minutes and a standard
deviation of 4$A@ minutes$ The nominal value is ta,en to #e 4@ minutes with an
upper specification limit of <; minutes and lower specification limit of 4;
minutes$ The administrators of the factory want to have a four si"ma capa#ility!
1ower specification calculation T 4:$A R 4; D I4$A@ U A9 T 4$@:
Upper specification calculation T <; R 4:$A D I4$A@ U A9 T ;$H4
C
p,
T minimum of I 4$@:! ;$H49 T ;$H4
4?
The tar"et value for four si"ma performance is 4$AA! hence the process
capa#ility index told that the process is not capa#le for achievin" four si"ma
performance$
Chec,in" up the process varia#ility with process capa#ility ratio! the results are
found out$
C
p
T I<; R 4;9 D I: U 4$A@9 T 4$<A
'ven the process varia#ility did not meet the four si"ma tar"et of 4$AA$ &ence
the factory needs to ma,e further improvement in their production plannin" and
processes to reduce their production timin" to attain four si"ma performances in
the future$
(*RJ'TIN- *CTI3IT+
The -o #i,e is introduced mainly to reduce the smo,e emitted considera#ly
which in turn will helps to save the environment and also its a #i,e which runs
on less expenses$ 0o the maor advertisements on radio and newspaper will
hi"hli"ht these ,ey o#ectives$
The company has started its own factory outlet at three sites within the
Coim#atore city at R0 )uram! -andhipuram and )eelamedu$ 0oon the
showrooms will #e extended to Tripur and 'rode! since potential mar,ets have
#een identified there$ *nd with the predicted "rowth level! in another yearor two!
we will extend showrooms in all the maor centres in south India throu"h our
direct showroom and also franchisee in possi#le areas$ The mar,etin"
department in the Neptune -O 8i,e has deviced their own plan of action$ They
have split their whole mem#ers into three teams with each team havin" their
own distinctive strate"y
0howroom *ctivities
Direct (ar,etin"
Rural (ar,etin" *ctivities
S"O3#OO+ TEA+)
The teams main wor, is to mar,et the products to the customers visitin" the
showroom$ The Team will have A 'xecutives and a person for handlin" test ride
activities and another person for handlin" exchan"e of old #i,es activities$
The customers visitin" the showroom will #e provided with "ood hospitality!
enou"h care and respect$ The receptionist welcomes the customers and ma,in"
necessary people to approach them! the 'xecutives will ta,e care of them #y
explainin" the vehicles with the posters! #oo,s and other function of the
vehicles! and clarifyin" the dou#ts of the customers and convincin" them to #uy
the product$ 2or enhancin" the #rand ima"e of Neptune *uto! the followin" are
practiced:
Customers 6aitin" 1oun"e
Complimentary "ifts li,e 6ater #ottles ! -lasses! )ens!
Diaries etc
Notice #oard D Display #oard D *dvertisement #anners
4H
ID card for 'mployees
Dresses DUniforms
/I#ECT +A#$ETIN2 TEA+
The team will focus more in identifyin" the tar"et mar,ets and se"ment$ The
team will have two Team 1eaders and the "roups will #e formed under them$ The
two teams will involve in the function of or"aniKin" mar,etin" camps at the
selected places in the city! which will help to ma,e to interact directly to the
customers and to clear the dou#tsD%ueries of the customers $This helps them a
lot to convert the desireDwish of the customers to eye a -O #i,e and identify the
prospective customers$ 'ach of their details will #e entered into the customer
data#ase and followed up re"ularly$
#1#A! +A#$ETIN2)
6e #elieve that rural customers are important and they are ma,in" the maor
sales ratio$ 1i,ewise this team also will have a Team leader and the team
functions is to identify the mar,et! su#>dealers etc to carry out the mar,etin"
activities$
8I81IO-R*)&+
C*)IT*1IN' )1U0
O)'R*TION0 (*N*-'('NT R )ROC'00'0 *ND 3*1U' C&*IN0 R #y Jraews,i!
RitKman! (alhotra
'80CO D*T*8*0'
www6scribd6co(5doc5,#3141*55 Production-and-Operations 7Management
www6scribd6co(5doc58*7#3185B00#17P7O7Set7,7#
www6scribd6co(5doc538741#85 Facility 7Planning
www6scribd6co(5doc581#37805 Basics-of-Production 7Management
www6scribd6co(5doc57,3*8505Prod79sg Process 7Anal"sis
www6scribd6co(5doc573*813*5Facilit"7La"out
http:DDwww$mtmanufacturin"center$comD0ervicesD)rocessImprovementDtotalZ%ual
ityZm"mt$html
<;
http:DDwww$#usiness,nowled"esource$comDmanufacturin"DhowZtoZuseZt%mZtoZin
creaseZmanufacturin"ZefficiencyZ;<A:BA$html
http:DDdissertations$port$ac$u,DA4D;4D(8*<$pdf
http:DDwww$euroournals$comDesrZ<:ZAZ4@$pdf
<4