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A Report of Industrial Training at Bosch
A Report of Industrial Training at Bosch
A Report of Industrial Training at Bosch
A report of
Industrial Training
at BOSCH
[Type the document subtitle]
Lijo John
6/22/2011
A report of Industrial Training at BOSCH
1. Introduction
The Bosch Group is one of the world’s biggest private industrial corporations. Headquartered
in Stuttgart, Germany, the Bosch Group has some 283,500 employees worldwide, and
generated annual sales revenue of 47.3 billion Euros in 2010. There are about 350 subsidiary
and regional companies around the world.
1. 1886 – 1900: The Workshop for Precision Mechanics and Electrical Engineering
On November 15, 1886, Robert Bosch opened the “Workshop for Precision Mechanics and
Electrical Engineering” in Stuttgart. At the outset, Bosch worked with two associates to
construct and install all kinds of electrical equipment, such as telephone systems and electric
bells. However, the company’s startup capital of 10,000 German marks was soon used up and
they had to rely on loans. Robert Bosch invested most of the company's small earnings in
modern machines. He later described his first years as a self-employed businessman as a
“shambles”. The construction of the electric power station in Stuttgart in 1895 was one factor
that helped the young company on the road to economic recovery by creating new jobs for its
installation business. The second factor was the magneto ignition device, which had already
become a linchpin in the company’s economic success
In 1887, Robert Bosch had been approached by a customer and asked to produce a magneto
ignition device based on a model made by the engine manufacturer Deutz in Cologne. Rather
than just copy the original device, Bosch improved on it displaying a mindset that would later
be reflected in his guiding principle of continuous improvement. The magneto ignition device
generated an electric spark that ignited the air-fuel mixture in the cylinder of a stationary
internal-combustion engine.
In 1897, Bosch was the first to adapt a magneto ignition device to a vehicle engine. In doing
so, he solved one of the greatest technical problems faced by the nascent automotive industry.
Gottlob Honold also rejoined the company. In less than a year, Honold went on to develop a
high-voltage magnetic ignition system with spark plugs. When he unveiled the first prototype
in December 1901, Robert Bosch was very impressed, declaring: “You have hit the bull’s
eye!” This sentence marked the start of the history of innovations at Bosch.
In 1898 Bosch began to establish sales offices outside Germany – first in the U.K., followed
by France a year later, and then Austria-Hungary. Bosch was soon represented in nearly all
European countries. The first steps on other continents were taken in 1906 in the U.S. and
South Africa, followed by Australia in 1907, Argentina in 1908, and China in 1909.
Bosch launched another automotive breakthrough in 1913 – the Bosch automotive lighting
system. Comprising a generator, battery, voltage regulator, and headlights, this was the first
complete system from Bosch and it created the basis for today's automotive electrical systems
By around 1925, the network of international sales offices was already larger than it had been
in 1914.
Like all other companies involved in the manufacture of armaments, Bosch was assigned
prisoners of war and later also forced labor to boost production.
On the other hand, Robert Bosch and senior Bosch executives supported resistance against
Hitler and provided those facing persecution with money or help with emigration. In 1969, on
behalf of the company, Hans Walz accepted the title of “Righteous Among the Nations”
bestowed by the Yad Vashem Shrine of Remembrance in Israel in recognition of these
efforts.
To ensure that the company remained in family ownership, Robert Bosch changed the
company from an AG (public limited company) to a GmbH (private limited company) in
1937. The following year, four years before his death, he wrote his will.
By the end of the war in 1945, large areas of the Bosch plants had been razed to the ground as
a result of Allied air raids. Robert Bosch did not live to see the destruction, dying on March
12, 1942.
Innovations
Although Bosch focused primarily on automotive technology in the first years after the war,
the company soon broadened its product range again to include refrigerators, radios, heaters,
National Institute of technology, Calicut Page 5
A report of Industrial Training at BOSCH
and power tools. Blaupunkt introduced the first VHF car radio in Europe in 1952. The launch
of the “Bosch Combi” that same year marked a turning point for the company’s power tools
business as it reached out to the new target group of DIY enthusiasts.
In the area of automotive technology, Bosch initially reestablished the technology at pre-war
levels, while engineers worked flat-out to develop new, pioneering technology. The
mechanical gasoline injection system for passenger cars was taken into series production in
1951. The first semiconductors to be installed in a car (variodes) represented a further
milestone in company history. They were first used in 1958 in regulators for generators.
Corporate constitution
In 1964, the executors of Robert Bosch’s will laid the foundation for today’s corporate
constitution. Vermögensverwaltung Bosch GmbH acquired the majority of the capital stock
of Robert Bosch GmbH from the heirs of the estate in 1964, transferring the voting rights to
today’s Robert Bosch Industrietreuhand KG (Robert Bosch Industrial Trust), the body
responsible for carrying out the company’s entrepreneurial ownership functions since then.
In 1969, Vermögensverwaltung Bosch changed its name to Robert Bosch Stiftung GmbH
(Robert Bosch Foundation) to underline the social focus of its activities. To this day, the
foundation supports projects in the areas of education, health, international relations, society,
culture, and science. Robert Bosch Stiftung currently holds 92 percent of the share capital of
Robert Bosch GmbH. Most of the remaining shares are held by the Bosch family.
This corporate constitution continues to play a key role in securing the entrepreneurial
freedom and financial independence of the Bosch Group. Most of the earnings generated
remain within the company, where they are used to secure its future. This allows the
company to plan over the long term and to invest heavily in the future without borrowing
from the capital markets. Robert Bosch Stiftung is paid a dividend, allowing the body to
sustain its commitment to charitable causes.
New divisions
In 1963, Bosch formed the Packaging Technology division through a series of acquisitions.
The pneumatics and hydraulics operations were merged to form the later Automation
Technology division, a precursor of today’s Drive and Control Technology division.
The board of management was particularly keen to expand the company’s international
business, laying the foundation for a second location in India, in Nashik, in 1973. The same
year, Bosch reached an important milestone in the U.S. by opening its first production facility
there since the Second World War – in Charleston, South Carolina. In 1974, Bosch generated
more than half of its sales outside Germany again for the first time since 1932.
Under the leadership of Marcus Bierich, chairman of the board of management from 1984 to
1993, Bosch expanded and pooled its telecommunications activities in the 1980s to form a
new business sector. Key areas in this merger included the radio technology business, which
was founded in 1954, the cell phone business, ANT Nachrichtentechnik, which was acquired
in 1982, and Telefonbau und Normalzeit Lehner & Co
The fall of the Iron Curtain also heralded a new era for Bosch. Access to the markets in
Eastern Europe and Asia in particular accelerated the pace of globalization, a process by
which previously distinct regional markets started to intermesh worldwide. Bosch was now
faced with the task of meeting these new challenges and grasping the opportunities that arose.
The share of sales generated outside Germany rose from 51 percent in 1990 to around 76
percent in 2009.
Herrmann Scholl took over as chairman of the board of management on July 1, 1993, a
position he held until 2003. He focused mainly on stepping up the company’s activities on
the emerging markets of Eastern Europe and Asia and safeguarding its innovative strength.
In Japan, Bosch gradually acquired a majority holding in Zexel Corporation, its biggest
Japanese affiliated company, completing the process in 1999. In 2005, this corporation was
merged with the other Bosch companies in Japan to form Bosch Corporation, headquartered
in Tokyo.
In India, where the fourth manufacturing location was opened in 1999, business also
developed rapidly. Up to 2003, the associates at Mico (today known as Bosch India)
produced a total of 25 million single-cylinder diesel injection pumps for stationary engines
and a further ten million for passenger cars and commercial vehicles.
Up until 1994, Bosch was only represented in China by companies working under license
and, from 1989, by one representative office. When the Chinese government recognized the
importance of foreign suppliers for the development of its own automotive industry at the
start of the 1990s, this market also opened up for Bosch. Following lengthy negotiations, a
breakthrough was achieved in 1995 when the Chinese government awarded Bosch the
strategically important contract to equip vehicles produced in China with electronic gasoline
injection systems. Bosch started assembling these systems through the joint venture company
UAES in Shanghai in 1996. 1996 also saw the start of production of diesel technology in
Wuxi, power tools in Hangzhou, and spark plugs in Nanjing. Further joint ventures quickly
followed, and Bosch founded a holding company for China in 1999.
Many other innovations followed, including the common-rail system for high-pressure diesel
injection (1997), DI-Motronic gasoline direct injection (2000), driver assistance systems such
as the ACC adaptive cruise control (2000), and the parking assistant (2005). In 2003, Bosch
introduced the Ixo, the first cordless drill/driver based on lithium-ion battery technology.
The global economic crisis in 2008/2009 caused Bosch sales to fall by around 15 percent to
approximately 38.2 billion euros in fiscal 2009, and meant that the company recorded an
operating loss for the first time since the Second World War. However, the crisis did not
affect the company’s long-term strategy, a strategy which is not only geared toward opening
up promising areas of business, but also incorporates an understanding of corporate
responsibility based on the principles of the company founder Robert Bosch. He appreciated
that corporate responsibility was essentially about finding a balance between business success
and social concerns. The task now is to expand this concept to include environmental
protection. In 2007, Franz Fehrenbach said: “Our top priority is without question to secure
the company’s long-term future, but we are also equally committed to doing so by achieving
a balance between ecology, economy, and […] corporate social responsibility.” This
statement is based on the belief that a company will only be successful in the long term if it
pursues a policy of sustainable business management and does not infringe on social and
ecological interests.
BOSCH in India
India, Bosch is a leading supplier of technology and services, and has a strong presence in the
country at numerous locations in diverse industry segments. Bosch set up its manufacturing
operations in 1953, and has grown over the years to 14 manufacturing sites and 3
development centres. Bosch employs about 22500 associates in India, and in business year
2010 achieved total consolidated revenue of over 6630 crores.
Bosch Ltd.
Bosch Chassis Systems India Ltd.
Bosch Rexroth India Ltd.
Robert Bosch Engineering and Business Solutions Ltd.
Bosch Automotive Electronics India Private Ltd.
Bosch Electrical Drives India Private Ltd.
Bosch Ltd.
Founded in 1951, Bosch Limited is India’s largest auto component manufacturer and also one
of the largest Indo – German companies in India. The company generated net sales of Rs.
6630 crores in 2010. The Bosch Group holds 71.18% stake in Bosch Limited.
Bosch Limited has a strong nationwide service network which spans across 1,000 towns and
cities with over 5,000 authorized representations to ensure widespread availability of both
products and services. The company is headquartered in Bangalore with manufacturing
facilities at Bangalore, Naganathapura (near Bangalore), Nashik, Jaipur and Goa.
The Chassis Systems Brakes Division develops and manufactures innovative braking systems
for the automotive industry within a global network. As part of the world’s largest
independent parts supplier to the automotive industry we offer our customers advanced
technology, quality and excellent services, all from a single source.
Full Brakes System Competence is strength of Chassis Systems Brakes. We offer all products
and services around braking systems. That includes: Noise Vibration and Harshness,
integration of the newest simulation models, competence in hydraulic braking systems, disc
brakes, rotors, friction material and close coordination with brake modulation like ABS and
ESP.
The continual improvement of driving security and comfort supports our aspiration to be the
preferred partner of our customers.
Areas of operation:
Bosch Rexroth is one of the world’s leading specialists in the field of drive and control
technologies. Under the brand name of Rexroth the company supplies more than 500,000
customers with tailored solutions for driving, controlling and moving. As The Drive &
Control Company, Bosch Rexroth develops, produces and sells components and systems in
more than 80 countries in the technology fields Electric Drives and Controls, Industrial
Hydraulics, Mobile Hydraulics , Linear Motion and Assembly Technology and Pneumatics.
Robert Bosch Engineering and Business Solutions Limited (RBEI), is a 100% owned
subsidiary of Robert Bosch GmbH, one of the world’s leading global supplier of technology
and services, offering end to end engineering, IT and Business solutions.
With over 7500 associates, we are the largest software development center of Bosch, outside
Germany, indicating we are the technology flagship of Bosch in India. We have a global
footprint with presence in US, Europe and the Asia Pacific region. We are ISO 9001:2008
certified (2009), appraised at CMMI-L5 (2006) and also ISO 27001 certified (2009). We
have two state-of-the-art facilities in Bangalore, and a second development center in
Coimbatore.
We nurture, build and sustain enduring customer relationships to enable direct operational
and strategic benefits to our customers. We make it happen through qualified, motivated and
flexible professional associates, who uphold the heritage and values of Bosch - time-tested
over 124 years of a successful journey; a journey marked by quality, reliability and
innovation of service to enhance the interest of our customers and the community we live in.
Bosch Automotive Electronics India Pvt. Ltd. (RBAI) is a 100% subsidiary Robert Bosch
GmbH, incorporated in April 2008 to manufacture Electronic Control Units for the
Automotive Electronics Division. RBAI will cater to both domestic and International OE
Customers via the Diesel Systems and Gasoline System divisions. Like any other Automotive
Electronics Plants, RBAI is also very committed to the highest level of quality standards. It
focuses on continuous intensive training to its associates with support from its lead plant
thereby achieves the global competencies too meet the customer expectations.
Bosch Electrical Drives India Private Limited has been formed since April 2008 with the sole
objective of dealing Electrical Drives products from Robert Bosch GmbH, Germany and also
from its affiliated and subsidiary companies in the rest of the world. Bosch Electrical Drives
India Private Limited is engaged in Sales, Manufacturing, Development and Application of
Wiper Systems including Wiper Motors, Engine Cooling Systems including fan motors,
HVAC blower motors, window lift motors and other system components
1. Engineering Services
2. IT services
3. Business services
1. Automotive industry
2. Industrial Technology
3. Consumer Goods and Building Technology
4. Engineering and IT services.
Automotive Industry
Bosch innovations have shaped cars from the start and will keep doing so in future. As the
world’s biggest independent automotive supplier, Bosch focuses on innovations to make
driving safer, cleaner and economical. Automotive Technology is the largest business
segment of Bosch in India, supplying to the local automotive industry, and exporting
components overseas.
Industrial technology
Bosch Rexroth AG is an expert for all drive, control and motion technologies. The Bosch
Packaging Machines division in India brings the global expertise to address the needs of the
local confectionary and pharmaceutical industries. The Special Purpose Machines (SPMs)
and High Precision Toolings division engineers customized equipment using cutting-edge
technologies for industries.
The Engineering and Information Technology division of Bosch in India is the largest
development center of Bosch outside Germany. For over 15 years, it has been the preferred
engineering services and solutions partner for the Bosch Group worldwide.
Bosch designs, manufactures and sells its products throughout the world from 250
manufacturing sites in 90 countries. As one of Europe’s most innovative companies, (Bosch
is the third biggest lodger of patents in Europe), the firm is well placed to anticipate the
challenges every European manufacturer will have to face in the future. Its response has been
to emphasise innovation in all areas and to provide a production system that will support this
by enabling it to compete with new competitors from all over the world. To meet these
challenges the company has developed the ‘Bosch Production System, to match its innovative
and operational capabilities.
With half its 230,000 workforce outside Germany, Bosch is a global player in the very real
sense of the word. Its three business sectors create products ranging from car components;
capital goods like packaging and locomotive technology to household appliances. And each
division has to respond to the opportunities and threats of their respective global market (see
box). The current market position of its power tools division illustrates the challenge, where
cheaper competitors from the Far East have reduced Bosch’s share of the German market
from 72% to 37%. “Bosch is countering with innovation,” claims Franz Fenrenbach,
chairman of the board of management, who spells out the rules every innovative European
manufacturers will face in the years ahead: “Innovations will only become established in
markets if they are translated into products offering great customer benefit, combined, in our
case, with cost-effective large-scale series production and maximum precision and quality.”
To deliver these objectives, Bosch is rolling out its own Bosch Production System (BPS),
which marries together the group’s innovation and production capabilities. The project is an
ambitious one, uniting the group’s many production activities and locations into a single
manufacturing methodology through its 250 manufacturing sites worldwide. Though
ambitious, the aim of the Bosch Production System (BPS) remains simple and succinct:
Increase customer satisfaction and value contribution through overall improvement of
quality, delivery and costs. Continuous Improvement Programmes have been implemented
through the group since 1992, with a variety of change programmes at plant level. The Bosch
Production System aims to converge these efforts, providing common metrics, benchmarks
and working methodologies through the group worldwide.
In Search Of Simplicity
What makes the Bosch Production System of interest to other businesses is not just its
bringing more coherence to the organisation (which embraces thousands of markets,
customers and suppliers), but the project’s aim of simplifying the operations of a company
that has built its competitive advantage on integrating complex technologies into each stage
of its activities. In its Automotive Technology division, for instance, one out of four members
of staff is a software specialist. Bosch has built its very considerable global success on
harnessing technology and innovation, and now it needed an all-embracing production
system to deliver it.
One of the big drivers behind the Bosch Production System was to lower investment and to
improve Quality. Bosch is extremely technologically-driven, and it spends a lot of money on
IT, but that generates problems. In some instances Bosch somewhat over-automated, and that
was also one of the drivers of BPS. To really get a change into the company it must start to
think that things are not that complex, and they start to think with and run simpler systems
and be more efficient.
As a company with so many markets, so much capability and so much technology, Bosch
generates a great deal of complexity. The only way to manage its global operations
successfully was to simplify them. The priority of the Bosch Production System, therefore,
was to refocus every Bosch plant on the performance factors that ensured efficiency was
being matched by quality output. And to achieve this, the new system focused on getting
‘flow’ into factories through eliminating waste and inventory. In the past Bosch had highly
efficient machines with huge buffers in between - and nobody could manage that system.
They had extensive computer systems to manage the entire production, and as always when
you do that it’s not manageable, because once you have unplanned changes in the market and
with your suppliers it becomes unmanageable – so the whole system is in a constant state of
chaos. In order to get away from this Bosch wanted to improve the flow of products from
their factories. That was the basic idea behind the BPS. Creating a consistent flow would, in
accordance with Lean Thinking principles, ensure more accurate planning, greater
transparency through the whole group and so identify potential synergies between plants. The
challenge was how to achieve it
The basis for Bosch’s new approach was the Toyota Production System and Lean Thinking
principles, as expounded by Daniel Jones, and both were active consultants in Bosch’s
project. The premise for any ‘Lean’ approach is that customer demand generates the ‘pull’
that drives production. Instead of ‘pushing’ production through the system and into
warehouses, production only takes place in direct response to customers’ orders, ‘pulling’
goods through production lines and straight to the loading bays. Inventory therefore is
avoided and seen as waste, and goods are produced only as customers require them. “Bosch
production system is based on pull on real customer ‘takt time’, and produced only in the
‘takt’ as customers want it. Then you also have a fast flow through your factory and this
requires very stable and very connected process.”
The focus on waste became a focus in communicating and driving the new manufacturing
approach, with its elimination from all activities as an overall target. This meant producing
the right part, in the right quantity at the right moment; “scheduled, produced, assembled and
transported” as Bosch term it – anything more is seen as waste and a signal that a process is
performing at “less than excellence”. Inventory – and inventory coverage – has therefore
become a key metric in Bosch’s production system, with any build-up of materials signalling
inefficiencies.
Eliminating excess output and effort, means synchronising all activities to optimise
efficiency, much like fine-tuning an engine, so that everything runs to the same tempo.
Getting rhythm in the factory, that’s one of the key things in BPS. Most factories today
cannot recognise any rhythm; they have a lot of inventory buffers between processes. People
are working on production lines, then they wait for the next part to come or they leave the
line to get material. If you go into a really lean factory, though, you see exactly that
everything in manufacturing and logistics goes hand-in-hand and this is the highest most
efficient way of producing – to have flow and rhythm in the factory. And that rhythm has to
be in accordance with the customer takt, so that you work exactly to the customer demand.
which should represent the current best practice of the company and those standards must be
connected so that you get the best results throughout the factory. And you can see the rhythm
in the factory –everything works hand in hand and there are is a minimum of inventory
around.
A consistent rhythm ensures a consistent flow through each production line. The objective in
developing the Bosch Production System was to extend such flows though each entire
factory, and ultimately through the entire group. When Bosch designed new production lines
in the past their major intent was to have highly productive single processes with the best
machines involved. But now for Bosch it is much more important to have very fast flow of
the product from the factory, so throughput time and inventories are their now one of their
most important numbers, to get the flow into their factories.
For such a system to work in any factory, least of all in a worldwide company, flexibility was
a key principle. The reality of a production system, built around such variable demand is that
there are no longer any hard or fast rules, instead there is a common approach and mindset,
driven by the same overall goals and vision. In practical terms for Bosch, this amounts to:
Flexibility regarding volumes, product variations and product generations.
By definition, such flexibility can only be achieved on each factory floor through autonomy
and managed diversity, with each site and manager being sufficiently skilled and empowered
to make the right decisions. BPS principals and Standards are the cornerstones for the
implementation in each factory, which follows a customized implementation schedule.
Achieving this required each factory to create its own picture of how it would implement the
BPS and what it would achieve from it. As part of the implementation of the Bosch
Production System, plant managers have to develop and present their vision of how their
factory will look like in five years, and how that vision will be delivered. Material- and
information flow as well as management involvement and team organisation have to be part
of that vision. Visualising how the system will work and be implemented provides focus for
all activities, creating clear priorities for decision-making.
The vital importance of management training in the implementation of BPS should not be
forgot. Because the Bosch Production System represents a whole different approach to how
the business operates, which demands more than mere instruction and instead requires
managers to re-assess how everything is done, and why, it is a paradigm shift that not
everyone finds easy to make. Many go into the meetings being complacent thinking ‘I know
all this already’, which is one of the main obstacles to introduce any production system.
Because people know some elements of the System, think they know it all and don’t see the
need to go deeper, but the basic understanding of BPS as a System approach isn’t there.
The emphasis in rolling-out BPS is on creating this understanding and its taking root in the
organisation. Instead of just instruction, Bosch uses a structured programme of lectures,
simulations (where over a three day introduction, participants like plant managers rebuild
production lines and measure the resulting performance), which culminates with site visits to
Japanese firms. A key objective is to ensure ‘value-mapping’ takes root, which ensures each
plant’s activities are seen from the perspective of customer value, generating ‘value streams.
The simulations rely on creating a recognisable material flow through the factory, with a
flow-oriented layout, built on small lot sizes and visible inventory. Simplification is key
throughout, with the Bosch Production System built on ‘just-in time’ principles and the
reduction of lot sizes (Bosch pilot lines use a “train” of carriages delivering what’s needs for
the next two hours of production). This means all key data is visible and easy to measure,
with real time information available throughout the shop floor.
The BPS is a business-wide initiative with, which combines top-down with bottom-up
initiatives, monitored by a steering committee that extends to board level overseeing the
project’s roll out. It is extremely important that top executives make it clear that to all the
division leaders that this is the highest priority. Every production system has a lot of
elements. For us the elements are not that important, for us what’s important and that
everyone – especially management– understands those eight principles and knows how to
apply them on the factory floor.
Once the BPS is established in its plants worldwide, the next, and very considerable
challenge is to extend the principles to its suppliers. “There’s huge challenge in getting it
through the supply chain to get a material supply exactly in the rhythm that it’s needed, so
materials arrive at the point of use exactly as they’re required. Winning over suppliers to the
new rhythm is an ongoing challenge already underway and critical to the success of the BPS.
That’s where they have buffers now – less in manufacturing but in the supply chain. But first
Bosch learnt it in their own factories, then the supplier gets in a rhythm too and then they
minimize inventory throughout the supply chain, which of course is waste. Not because of
the depreciation (it’s a lot of money, but it’s not that huge), but because it’s a sign of how
well your processes flow. The overriding metric is really the inventory coverage as it shows
you where you’re going to.
While Lean-based Production Systems extend the quality remit to everyone, one should not
forget about the importance of a stand-alone independent department (as does
Flextronics).You absolutely need a very strong quality department independent from your
manufacturing as an interface with the customer. You need to have firewalls for the
customer. Bosch has had Six Sigma blackbelts for a number of years and is, integrating it in
to the BPS, especially it the design of goods and processes.
It is the culture of pursuing perfection and the ability to eliminate variance that is key, and
quality standards only provide a guide for when such variations arise. In other words , what
we experience, is what we implement as a standard somewhere, it can be a working standard
or a kanban, we find that standard doesn’t last for ten minutes. We have a disturbance
somewhere and you can no longer follow the standards, and then what’s important is that you
have a process in place and people trained to eliminate those problems fast and sustainably …
Implementing standards is the easy part and every factory have lots of them, like ISO 9000,
but many of them are only on paper - the really important thing is that variations from
standards are discovered, and that counter measures are introduced swiftly, and that I think in
most of the factories is not organized effective enough - – not just in Bosch.
In the product design phase Failure Mode Effects Analysis (FMEA) is an essential tool for
Bosch for quite some time now. [FMEA involves analysing the causes, risks and effects of
failures of systems and components, and is used as for prevention and contingency planning.
In past Bosch counter measures to potential problems were very much high automated testing
Manufacturers everywhere seem to have adopted Lean Sigma principles and variations of the
Toyota approach in the last few years. Because this approach builds on so many techniques,
is this the ultimate production system. Is this likely to be the dominant methodology for the
future?
This production system gives us the base to have one system in our factories. Right now
Bosch is in catch-up mode we all have to catch up twenty years on Toyota, and in that time
they won’t be stagnating. Toyota is thinking very intensely about where they want to go to
and Bosch too. Resting on this is not the right approach. Bosch has a huge challenge for the
next 2 to 3 years, of getting into this into the hands of plant managers, but they have to think
about how this system will renew itself all the time and what the next step is. What’s the
system in design engineering, in HR, in sales and how do they integrate? They have to
experiment and think deeply how to develop and integrate those systems.
The Bosch Production System aims at creating a simple, reliable and effective manufacturing
process, which are standardised and continuously improved in a very systematic approach by
the workforce. This requires a common set of standards, worldwide exchange of best
practices and continuously learning .Ultimately the Lean production methods Bosch is
introducing require flexible organisations that rely on continuous learning and creativity of its
people. . Rigidity in structure and outlook is no longer appropriate for global competitors.
Bosch Electrical Drives India Private Limited has been formed since April 2008 with the sole
objective of dealing Electrical Drives products from Robert Bosch GmbH, Germany and also
from its affiliated and subsidiary companies in the rest of the world. Bosch Electrical Drives
India Private Limited is engaged in Sales, Manufacturing, Development and Application of
Wiper Systems including Wiper Motors, Engine Cooling Systems including fan motors,
HVAC blower motors, window lift motors and other system components.
RBDI (Robert Bosch Drives India) located in Chennai, Tamil Nadu. Located just 3 km off NH
45 at a place called Guduvancherry caters to the need of various automotive giants like
Hyundai Motors India, Mahindra & Mahindra and Ford. It also acts as a tier two supplier for
Tata motors also. The main product that rolls out of the assembly line of Bosch is the Wiper
systems assembly and the Window lift Motor. The other products are Heat ventilation and Air
Conditioning (HVAC) motor, GPB motor, ECF motor and the Engine Cooling Fan Module
(ECFM).
The plant segregates its products into three categories, namely actuation systems, wiper
systems and thermal systems. The actuation systems mainly deal with the assembly of the
window lift motors. The main customers for this product are the Hyundai Motors India and the
Tata Motors. But Bosch acts as a tier two supplier, ie, it does not supply to the Original
Equipment Manufacturer (OEM). Here the direct customers to Bosch are IFB, Abishek who in
turn supply to HMI and Tata, Tata and HMI respectively. Most of the parts for the assembly
are obtained from the local suppliers without any compromise in the quality.
The Wiper systems assembly line assembles the wiper systems motor and the linkage
mechanism for both HMI and Ford. The plant has the capability to assemble for both left hand
drive and right hand drive cars. Presently the motor for the assembly is being imported from
Robert Bosch Korea but soon it will be manufactured in house. The other products from the
wiper systems are the reservoir assembly and the arm and blade assembly. The reservoir
assembly is for the HMI. This assembly line produces two products viz one way pump
assembly and two way pump assembly. The pumps for the assembly are being imported. The
arm and blade assembly line assembles the wiper arm and blade for the Ford and HMI. The
assembly line assembles the wiper arm and blade for both driver side and the passenger side
separately.
The thermal systems of the automobile like the motors required for air conditioning sytems
and engine cooling systems are also being taken care of in this facility. The main products that
are being assembled here is the HVAC motors and the ECFM. The major customers for
HVAC and ECFM are Subros, Renault and Tata motors.
The arm and blade assembly line mainly deals with the assembly of the wiper arm and blade.
This part is the sub assembly for the entire wiper systems. This assembly along with the wiper
motor assembly forms the complete system. Bosch assembles this on the request of its
customers. The main customers for this assembly are Ford and Hyundai. The wiper system is
not same for both the passenger and the driver sides. The driver side requires the arm to wipe a
larger area compared to the passenger side. This requirement is clearly seen in the design of
the wiper motor assembly and the also in the arm and blade assembly. This requirement is
being taken care of in the wiper motor assembly with the help of a four bar mechanism which
is being driven with the help of the motor. The arm and blade assembly is also designed by
keeping this requirement in mind. Thus the arm for the driver side is shorter and the blade is
longer. But for the passenger side it’s the other way around. The arm is longer and the blade is
shorter.
The assembly of the arm and blade for both the driver side and the passenger side is being
done separately. The quality issues regarding with the arm and blade assembly is being taken
care of very strictly here. The force which the arm exerts on the windshield is monitored
carefully. And those pieces not conforming to the standards are being rejected. Presently the
assembly is done only for the domestic purposes or the Right hand drive. The maximum
yearly output for the line is 750000 pc/ year when the line runs for three shifts but presently
the line operates for two shifts.
The reservoir assembly line is constituted for the assembly of the reservoir tank along with the
pump for the automobiles. This tank is used for the water storage and the sprinkling purposes.
The assembly mainly consists of a reservoir tank and a pump along with its hoses. There are
three basic models which are being assembled here in this line. They are one way pump for
the domestic purposes and two way pump models for both domestic and export purposes. The
main customer for the reservoir assembly is Hyundai Motors India.
The major difference between the one way pump and two way pump is the number of
openings it has. The one way has only one opening and so it is connected to only one hose but
two way on the other hand has two opening so it is connected to two hoses. The cycle time for
two way pump is slightly higher than the one way pump assembly. The assembly is tested in
the pressure testing apparatus for the pressure and the leakage if any. A very high standard is
maintained. The maximum output of the line is 750000 pc/ year when the line works for three
shifts but presently the line operates for two shifts.
The reservoir assembly and the arm and blade assembly lines are placed together in the same
allotted space. This space includes the space for the raw material, the operator and the
assembly stations and the finished goods. All these are placed together in the same space.
In this report an effort has been made to study the working of these two lines and to rearrange
the layout after identifying the flaws in the existing layout. This was done after a systematic
study of the layout, conducting time study and applying the principles of industrial
engineering for suggesting a more ergonomic layout.
The rest of the report is being organised as follows. Initially the work content of the arm and
blade line is being carefully studied and then a time study is being conducted and based on the
results of time study and the current layout is being analysed and finally a new layout is being
suggested.
The work content for the arm and blade assembly line
The above given steps are the work content for the assembly of the arm and blade. The arm
load of the arm is very important for the wiper to work effectively. The other observations to
be done while checking the arm is that there should not be any kind of the visual
imperfections in the arm, the arm should be having the locking mechanism, the arm should
have the proper alignment of the spring which gives it the required load.
The time study was conducted for the arm and blade assembly line. The results of which is
being tabulated in the appendix.
From the results of the time study it can be seen that the previous time study records did not
consider the walking time in the time study. The walking time becomes an important factor
since the operator has to walk a distance of about 1.2 m after completing each cycle or after
each assembly. This takes roughly about 2 seconds on an average. Without considering this
factor the cycle time was being calculated and the time obtained was about 30 seconds. The
results of the time study conducted states that the cycle time including the walking time come
out to be about 30. 2 seconds. Thus a correction seems to be made in the actual cycle time
calculations.
Based on the above findings the layout was tried to be modified. The need for the
modification of layout was recognised since the space currently used for the layout had to be
used for another purpose and the layout had to be shifted. So taking this opportunity the
present layout was analysed and the shortcoming were tried to be eliminated in the new
layout that was being designed.
In the present layout, the machines are being placed in the space given by 11.5x3.4 m. Within
this space we have two assembly lines functioning, one each for the arm and blade and other
for the reservoir assembly. The space allocated for the reservoir assembly is given by 6.8x3.4
m and for arm and blade assembly the space allocated is 4.7x3.4m.
The arm and blade assembly line has the following parts to be allocated within the assembly
line. The table below gives the list of parts and their space requirements.
All the above parts should be arranged in the layout. The present layout the total space
available is 15.98 m2 and the total space utilized is 8.98 m2 . Thus the total space utilization
is just 56.22 %. Thus it can be inferred that just above 50% of the space is being utilized for
the layout. This is a very low utilization percentage. The main disadvantages of having very
low utilization are that a large amount of space will be wasted. This leads to additional cost.
Since the lost space cannot be utilised for any other purposes. Therefore the additional space
has to be procured if any further modifications as to be done. Moreover when a large amount
of space is being left idle the discipline in the line is also very difficult to maintain. Since a
large space is seen to left free the operators might have their own notion about what to do
with the space. This might lead to the storage of unnecessary items in the line. More over
when large space is available the operators tend to keep on producing till the space is being
filled. This may again lead to the problem of over production and also in carrying a large
amount of finished goods inventory which again adds up to the cost.
In the present layout the finished goods parts box is kept behind the operator. This requires
the operator to turn 180º after every part is being assembled. Thus it requires the operator to
turn 180º once in about every 35 seconds. So if the operator has to operate in an 8 hour shift
the number of time the operator has to turn is very high. This will lead to health issues for the
operator and can also affect the quality and the productivity of the line. Thus this should be
avoided while designing the layout. The operator should not be made to turn more than 90º in
one cycle.
The distance between the finished goods trolley and the operator is about a meter. The time
taken by the operator for moving the distance is about 4 seconds. This time is also a loss of
productivity. If the FG trolley was place closer this time can be reduced. In every cycle if 4
seconds is lost then for a production of 500 parts a total of 2000 seconds is lost. This means
more than half hour production time is lost.
Figure 1: Existing layout for arm and blade and reservoir assembly line.
The work content here does not specify the testing of the assembly and placing the finished
goods into the FG boxes. The testing of the assembly consists of various tests. The most
important of them being the leakage testing. The leakage of the tank can be a very serious
issue if not taken care of. Therefore the tank is being tested for leakage. This is being done by
connecting the hoses to the testing device and filling the air in the chamber at a specified
pressure and observing if the pressure goes down. If it reduces then the tank is bveing
rejected.
The time study for the assembly operation was conducted as the initial step. The results
obtained were compared with the existing results. It was observed that the time study
conducted previously was a highly conservative and was far from the actual scenario. The
time study results concluded that the actual time taken for completion of one cycle was 30.62
seconds where as the actual case scenario was much above at a value of 48.65 seconds. This
data is highly misleading and cannot be trusted for any further calculations. Depending on
this the number of operators has been assigned as two. The major flaw in this time study is
that the time for the inspection of the assembly was not taken into account. This time is
actually a major part in the cycle time. This time becomes very important especially when the
assembly of two way pump is being done. This flaw was rectified and the new time study
results yielded that the cycle time is about 48.65 seconds.
The reservoir assembly line has the following parts to be allocated within the assembly line.
The table below gives the list of parts and their space requirements.
In the present layout for the reservoir assembly the space available is 6.8x3.4 m, or the total
area available is 23.12 m2. This space also consists of a pillar of dimension 0.5x0.5m in
dimension. Therefore the total area available to us is 22.87m2. The space used by the
different entities is just 10.65m2. The total space utilization is just 46.57%, which is even
lesser than the arm and blade assembly line. Thus the total space available for both of the
layout together is 11.5x3.4 m. The combined space utilization is about 50.54%. This shows
that just the half of the space is being utilized. This again is not a very good sign.
For the reservoir assembly layout also the operator has to turn 180º after assembling every
piece. Thus again the operator will be fatigued very fast. For a cycle time of 48 seconds, ie ,
the operator has to turn once in a time gap lesser than a minute.
In the reservoir assembly line there a large number of pallets. This will again give rise to
issues relating to the line discipline. The operators will keep on producing till the boxes get
filled without considering the actual production schedule. Thus again there might be a large
amount of inventory being pilling up in the line, which again is an extra cost.
Originally this assembly line was planned for only one operator, but since for one operator
will have to walk a distance of about 3m for every cycle the number of operator had to be
increased to two. Thus an additional operator is required for this layout. But actually if the
layout was managed properly this could have been reduced to one and again the extra
operator can be used somewhere else.
Thus we can see that there is plenty of room available for the improvement in the present
layout. In the next session we will be discussing the new layout and merits of this layout
when compared to the present layout.
Flow of materials
The flow of materials is very important in any layout, and it becomes all the more important
when it is an assembly line. Whenever the layout is being designed it should be designed in
such a way that the flow of materials is not being hindered. There are basically two types of
flow in any layout, namely the internal flow and the external flow. The internal flow consists
of the flow within the layout or how the materials move from one machine to another. Since
it is an assembly line layout the flow of material is very important. The layout should
facilitate the flow of the material. The external flow means the flow external to the layout, ie,
the flow of the raw materials and the finished goods. The raw material pallet should be kept
in such a way that they are near the aisles for easy transportation and also the finished goods
pallets or trolleys should also be kept near the aisles for the easy movement.
Distance travelled
The distance travelled is one of the performance criteria whenever the layouts are being
designed. The distance travelled should be tried to reduce at any cost. The distance travelled
is always considered to be the additional cost. The movement requires time and the time
spent in travelling is the time lost. But we cannot eliminate the moment completely since it is
an ultimate necessity. Even though the movement is a non value addition process this is
unavoidable. Thus all the care should be taken to reduce the movement as much as possible.
This can be done by keeping those machines closer which have larger flow between them
closer. In case of sub-assemblies they should be kept close to the main assembly lines.
Material movement
The material movement mostly refers to the external movement of the materials. This
becomes important when the complete layout has to be designed. The material movement
from the raw materials warehouse to the assembly lines and finally to the finished goods area.
The layout should be so designed that this flow is facilitated and flow is continuous without
any one point having a very large traffic. This will lead to the smooth material flow and easy
handing of the inventories.
Operator’s convenience
Operator’s convenience should also be taken into consideration while designing a layout.
This is also very important since the operator is the one who is in the shop and who has to do
the operation. Therefore it’s the duty of the layout designer to take care of the ergonomic
factors while designing a layout. Most of the shop floor operations are inherently tiring and
require a great deal of physical work. So the layout should be designed in such a way that the
operators effort is being reduced and he or she does not have to undergo high amount of
physical strain. The operator’s mental setup also comes into the action. For example in
western countries the operators are used to work in the counter clockwise direction but in
eastern countries it’s the other way around. Therefore the work place design as well as the
layout design should be done keeping these factors in mind.
Space available
Space is always a constraint in the design of the layout in any case. The challenge is to come
up with the best layout within the given space. The space is not always available as a luxury
since the space comes only at a price. Moreover the available space should be used wisely
since the space wasted is the money wasted. It can be seems that by closely analysing the
space utilization in almost of the existing layout and by careful rearrangement more space can
be found out.
The country laws and norms should also be kept in mind before the layout is being designed.
In many countries it has its own standards for the minimum space that should be there for the
operator to operate in the machine. This should be followed strictly. Depending upon these
conditions the layout should be re-designed or modified. Many times these factors tend to be
neglected which may give rise to the legal issues. These laws clearly state all the points
regarding the minimum space required, the maximum working hours, the wages and its
calculations and the overtime wages too. For example in India the minimum space between
any two operators should be 1.2m.
Types of operations
The type of operation is another major factor while designing the layout. A layout engineer
should have a very good idea about the type of the operation and the difficulties faced by the
operator. He should also be well aware of the issues arising while the operation is going on.
The type of operation like those requiring high precision like that of a watch manufacturing
will have a different set of issues regarding the layout design than that of a job shop or a
foundry shop. Thus when layout designer designs the layout he should be well acquainted
with the operations himself. The best way to be aware of the issues are by going to the floor
and spending time over there, observing the operations, noting down the factors affecting the
operations, doing a FUSA study, talking to the operators, etc.
Environmental Conditions
The environmental condition in which the operator has to operate is also an important factor
that should be considered. For example in a watch factory the entire facility is arir
conditioned and the humidity is also kept under control. This is important since the part are
too small and the accuracy is highly required. But when it comes toa foundry shop the
especially the conditions prevailing near the furnace is completely different. Thus in a watch
factory if the machines can be located close by then in a foundry shop there should be enough
space between the machines for giving enough space for the operator to move and to
reposition himself. Thus while designing the layout the exact conditions prevailing should be
known and the spacing between the machines and facilities should be given taking all these
factors into consideration.
The type of the layout followed comes from the manufacturing philosophy followed by the
firm. The firm can adopt a line layout, or process layout. The firm can also adopt a cellular
layout. So as a layout designer these information should be considered and the layouts should
be designed. The layout consideration for a product layout will not be same for the process
layout. If the product demand is not large enough to justify a dedicated line for the product
then there is no point in designing a product layout and arguing this might reduce the other
cost like material handling cost. Thus the layout designer should actually consider the
different parts that are being manufacture and their demand and how it can be grouped or the
layout can be designed to achieve an overall profitability.
The size of the finished goods should also be considered. In assembly operations usually the
size of the produce goes on increasing with every operation. Thus this size also has to be
considered. For example in a automobile assembly line the size of the layout restricts the
number of the automobiles in the line but when we consider the layout of a small motor
assembly the size of the product does not increase to a large extent at each assembly station.
If the size of the finished goods is large enough that it cannot be moved by hands then the
layout should also have the space for the manoeuvring of the products also. Therefore the
layout designer should consider this factor also.
The above given factors are just a general view of the real life scenario. In every shop floor
there might be conditions that are unique to that shop. For a layout designer to design a good
layout he has to spent time in the shop floor and try to get himself familiarized with the
conditions existing there and the firms production philosophies.
Depending upon the factors that has been discussed above a new layout has been proposed.
The new layout consists of the two lines that have been discussed above. The figures of the
layout are being given below.
Figure 7: New layout for arm and blade assembly and reservoir assembly
The space required for the proposed layout is a total of 6.9x3.43m, in that a total of
3.45x3.43m is allotted for arm and blade assembly and 3.45x3.43m for the reservoir
assembly too. The entire available space is being equally divided to accommodate both the
line. The total space utilization for the arm and blade assembly line is 61.82% and that fro the
reservoir line is 79.8%, which is larger than the original space utilization. The total combined
space utilization of the two lines together is given by 70.8% which is at least 20% more than
the original layout. The proposed layout actually uses the available space in a more efficient
way. This increase has been achieved without compromising on the any other important
factors.
The next advantage of the proposed layout is that operator movement has been reduced in
both lines. In the proposed layout operator in the arm and blade assembly line has to move
only 1.30m compared to the 2 m in the existing layout. This saves about 1 second in every
cycle which adds up to the productive time for the operator. Where as in the reservoir
assembly line the operator has to move less than 0.5m to reach the finished goods pallet and
place the assembly. This again reduces the travelling time for the operator when compared to
the previous layout and thus the time saved adds up to the productive time of the operator.
The operator in the proposed layout will have to turn only 90º to place the finished good into
the racks when compared to the 180º in the previous layout. This reduces the operator fatigue
since the operator does not have to turn completely every time. More over the turning time
can also be saved and this also adds up to the operator productivity time. Moreover if the
operator is less tired the output of the operator also increases and there will be less number of
quality rejections.
The new proposed layout has higher space utilization. This was achieved by reducing the
number of finished goods trolleys and pallets for both the line. This has another advantage
also. The other advantage is that the operator will not have the tendency to over produce.
Since there is only limited space for the finished goods to be stored the operator will produce
enough for storing in the space provided. This also leads to lesser inventory in the line. Since
the inventory is less in the line it becomes easier to track the process and to keep it under
check. The number of pieces to be assembled will be known by the production department
and so they can send the required number of trolleys. This will reduce the decision made by
the operators in the line leading to a less chaotic situation.
The material movement in the proposed layout is well taken care off. The raw materials are
kept near the main aisles. Thus the material loaders can easily manoeuvre the raw materials
through eh aisle and can load and unload the raw materials. When the finished goods is being
considered the finished goods is being place near the finished goods area. The main
advantage is that the finished goods do not have to move any considerable distance to reach
the storage area. A slight push will be enough. Thus again the cost of material handling will
be reduced in the proposed layout.
Therefore we can see that the proposed layout has some obvious advantages over the existing
layout.
CONCLUSION
The existing layout for the arm and blade assembly and the reservoir assembly was studied
completely. The study revealed that there were some flaws in the existing layout. The flaws
like less space utilization, operator fatigue, long walking distances etc was identified. To
have a concrete idea about the time taken for the different operations and the time lost in
moving about by the operator due to the long distances the time study was conducted. The
time study revealed that the cycle time calculated for the both layout was not correct and the
new time study results were taken as the basis for further study.
Keeping the different factors affecting the layout design into consideration a new layout was
proposed and it was observed that the space utilization could have been improved and the
entire layout was rearranged into a smaller space. This material movement was facilitated, the
operator fatigue was reduced and the operator movement was also reduced. The new layout
also helped in reducing the number of operator from two to one in the reservoir line. Thus the
results of the study should be implemented and the issues in the real life should be analysed
for further fine tuning of the system.
APPENDIX
Taking the Rvr tank from the bin 2.14 2.24 3.26 1.42 2.55 1.42 1.93
1.42 3.26 2.137143
Marking the visual control points 0.92 2.65 1.33 1.02 0.62 1.43 0.72
0.62 2.65 1.241429
Take the motor from the bin 1.73 1.32 4.99 4.19 5.1 1.53 2.75
1.32 5.1 3.087143
Picking up of the hoses 1.16 1.63 2.55 1.63 6.63 0.82 2.75
0.82 6.63 2.452857
Dipping the hose in the oil bath and insertion of motor 2.43 1.67 1.53 1.02 2.55 1.22 1.02
1.02 2.55 1.634286
fixing the motor and hoses on the tank 7.53 4.35 6.23 6.32 6.43 5.61 5.71
4.35 7.53 6.025714
Connecting the hoses 5.3 4.56 3.46 4.69 2.85 4.48 5.81
2.85 5.81 4.45
starting the machine 17.73 21.13 16.12 13.97 18.26 13.88 13.46
13.46 21.13 16.36429
Final inspection and the markings 12.95 7.65 8.67 9.79 9.07 9.48 9.18
7.65 12.95 9.541429
Moving the material to FG area 1.33 2.14 1.22 2.34 1.94 1.02 2.04
1.02 2.34 1.718571
total time
48.65286
Cycle Time= 48.65