Mahindra CIE Project Report
Mahindra CIE Project Report
Mahindra CIE Project Report
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Author of report: Manoj Kuchipudi
Address: Composite Division, Gate No – 467 & 470, Takwe Road, Pune – 412106
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Acknowledgment
I have taken efforts in this project but its completion is the result of the kind support and help
of many individuals and the organization. I would like to extend my sincere thanks to all of
them.
I take this opportunity to express my deepest gratitude and sincere regards to Mr. Uday
Sankar Yarramilli, Dy. Chief Operating Officer and my project guide Mr. Subrata Roy
(Production manager) for their guidance and constant encouragement throughout the course
of this project.
I would also like to thank my faculty guide Prof. Amiya Kumar Sahu for his guidance
during the course of the summer project.
I would like to thank the entire team of MCIE composites division who have helped me in
some way or the other during the course of this week.
Manoj Kuchipudi
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List of Figures
Figure 1.1: MCIE customer details ........................................................................................................................ 8
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List of Tables
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Contents
1. Description of Organization ....................................................................................................................... 8
1.1. About MCIE .................................................................................................................................... 8
1.2. About Composites Division .......................................................................................................... 9
2. Learnings...................................................................................................................................................... 10
2.1. Application of concepts and skills ............................................................................................... 10
2.2. New knowledge and Tools ........................................................................................................... 10
2.3. Directions for Future learning ..................................................................................................... 10
3. Project Introduction .................................................................................................................................... 11
3.1. Nature of Problem .......................................................................................................................... 11
3.2. The objective of the study ............................................................................................................. 11
3.3. Expected Benefits ........................................................................................................................... 11
4. Methodology................................................................................................................................................ 12
4.1. Collection of Data ......................................................................................................................... 12
4.2. Formulate problem / Identify Constraints ................................................................................. 12
4.3. Rough Model ................................................................................................................................. 13
4.4. Testing ............................................................................................................................................ 21
4.5. Implement with the present order .............................................................................................. 21
5. Advantages and Limitations ...................................................................................................................... 22
5.1. Advantages ..................................................................................................................................... 22
5.2. Limitations ..................................................................................................................................... 22
6. Conclusion ................................................................................................................................................... 23
6.1. Organizational Issues ................................................................................................................... 23
6.2. Recommendations ........................................................................................................................ 23
7. Annexure ..................................................................................................................................................... 24
7.1. Dispatch Sheet Code .................................................................................................................... 24
7.2. WIP Inventory Sheet.................................................................................................................... 26
7.3. Post Moulding Plan Sheet ........................................................................................................... 28
7.4. SIP Certificate ................................................................................................................................ 32
8. References .................................................................................................................................................... 33
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Executive summary
Mahindra CIE Automotive Ltd has various divisions, which supplies automobile parts for
various companies like (Mahindra & Mahindra, Daimler, Nissan, TVS, etc.). Composites
division delivers the plastic parts for a vehicle such as battery box, cut bumper, etc. to their
clients.
Earlier the company had a stable demand from some loyal customers and therefore the
production planning was simple and efficient. However, from January 2019, the company
started to face uncertainty in customer demand, which led to the company shifting its plant to
a new location for better planning.
Due to these uncertainties, the production planning became difficult and the plant was unable
to deliver their products to the customers on time. The company does the production planning
manually where the planner needs to focus on many things other than planning which makes
the job hectic. To add to the problem, many manual errors are made in the process. To avoid
this the company needed a production-planning model for the downstream value chain, which
would include all the variables and generate a production-planning schedule for the complete
month.
This production model should include the inventory in hand and take care of many other
constraints like family molds, machine failures, etc. At present, they need this model in the
spreadsheet so that they can use this logic for their SAP application and do the production
planning in SAP. This main aim of this model is to give more flexibility to the production
planning and help us check for the possibility of on-time delivery to the customer. The job of
the planner is to focus on planning and not on other activities like data collection, preparing
excel sheet, etc.
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1. Description of Organization
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1.2. About Composites Division
MCIE composites division has two plants, one in Pune (Kanhe) and other in Mangaon. The
Mangaon plant produces the sheet-molding compound (SMC) and Dough molding
compound (DMC) with a capacity of 10000 tons SMC and 4000 tons DMC. Around 90%
of the production is supplied to the external customers and remaining for the internal
Production. Total in the compression molding shop they have 12 press machines from 100
up to 2000 Tons, among them four are in Mangaon and remaining in Pune. Molding and
post-molding processes are done in Pune (kanhe) plant the majority of the production and
dispatches will be done from here.
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2. Learnings
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3. Project Introduction
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4. Methodology
List of Requirements –
Process Sheet for all the products – to find the number of operations required,
pressure and temperature details.
Previous data of orders received – To find runners, repeaters, and strangers.
Previous data on customer dispatch trends – to plan the post-molding process.
Machine specifications and constraints
Setup cost and Inventory cost – to calculate EPQ
Safety Stock calculations
Timings of operations (setup time, cooling time, cycle time, etc.)
Inventory details( Work in progress inventory, Finished goods inventory,
Customer norms)
Previous Rejection, Availability and Performance data – To calculate
OEE(overall equipment effectiveness)
Present Line data for post-production (number of workstations, workers, etc.)
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There are many constraints while preparing the model; one of them was a family mold,
there are few products, which can be produced, in a single mold. While planning one
single allocation should be given to all these products. Therefore, I prepared a separate
list at the bottom of “orders update sheet” and “data sheet”, this list contains all family
molds and a new part name and part code for each group. Then I allocated the
maximum of cycle time, price, dispatch quantities, demand, safety quantity and
minimum of OEE% and inventory to the new part. For molding, we used this new part
name while planning so that the repetition will not be there and for post-molding, each
part has a separate process so individual parts will be used there not the group name.
While doing these few products can have different demand and dispatch date so to
satisfy one order we may need to produce the other part which adds up to our inventory.
To plan the post-molding process we do not have any standard process so no capacity
restrictions or no pre-allocated lines. Therefore, before planning, we need to make the
process standardization, calculate the cycle time for each product and then plan the
production process. (Stevenson, 2018)
For some products, we produce in Mangaon plant and for some, we do molding in
Mangaon and Post Molding at Kanhe location so for all these products different steps
need to be followed and they will be discussed further.
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Figure 4.1: Production planning model process flow
Data Sheet - Until now we do not have the complete data in one single file, it is difficult
for a planner to collect the data from different teams. Therefore, I prepared a data sheet
that contains all the required data for planning. We need to update opening inventory
details at the beginning of the month and any other changes if required. The data from
this sheet is used all over the planning process so if we make any change in this sheet
it will be updated throughout the plan. This sheet has two tables one for products data
and other for press data, these tables contain the following data
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FG Norms
Setup Cost
Safety Stock
Inventory Cost per unit
Rejection%
Quality%
Performance – Target Production Quantity/ Actual production Quantity
OEE% - It identifies the percentage of manufacturing time that is truly productive.
Press
Availability – Actual production time/ Planned Production time
Setup Time
Manpower Required
Setup Cost
Orders Update – In this sheet, we update the monthly orders along with their price,
FG norms (customer minimum inventory) and their dispatch dates. Even the sales team
can update this sheet. Data Sheet and Orders update are the only sheets where we add
data manually and all the other sheets use this data for production planning.
EPQ – In the first step of our planning process, we need to decide on “what to produce?
For a few products, opening inventory is enough to fulfill the customer order, for some,
we need to produce according to the demand and for others, we should fill the safety
stock. To decide this we need to check WIP inventory, safety stock and demand for that
particular product. The logic we used for this is:
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Condition To Be Produced
From sheet
D – To be produced
Co – Setup Cost
Ci – Inventory cost
After getting the EPQ amount, by dividing the total demand with EPQ amount we get
the number of runs, and quantity per run for the complete month.
Dispatch Sheet – In the EPQ sheet we decided on “What to produce?” and “How much
to produce?” now we need to decide on “When to produce?”, also till now we focused
on the complete data, in this sheet we take the products which we need to produce based
on the number of runs (VBA code in Appendix 7.1: Dispatch Sheet code). For these
products, we import dispatch dates from the orders update sheet using VBA code. After
importing the data, we check for the opening inventory and check until which date we
can dispatch using opening inventory. Whenever the present inventory level goes below
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the FG norms we note that date, using this date and production lead times we generate
the priority list. There are two tables in this sheet one for dispatch dates and another for
priority list, above priority list table we have a dropdown to select the machine and
based on our selection we get the list(VBA code in Appendix 7.1: Dispatch Sheet
Code).
Molding Plan – This sheet will give the complete plan for the month, which need to
be shared with the production supervisor. It contains the day-to-day plan for production
and we can check for the percentage of production we can complete by the end of the
month. Therefore, the planner can try to change the machine or outsource these products
to satisfy the customer. We just need to copy the priority list from the Dispatch sheet
and paste it here for each press, and it will give the complete plan.
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Figure 4.4: Sheet for molding plan
This sheet contains
Press
Part Name
Part Number
Plan – production quantity per run
Setup Time
Cycle time
Planned OEE% - production efficiency(Availability*Productivity* Quality)
Parts per hour – (60/cycle time)*(OEE/100)
Production run hours – total number of hours required to produce that plan
Cumulative run hours – setup time + production run hours
Start hour – Previous product stop hour + setup time
Stop hour – start time + production run hours
Plan Hours – number of working hours for the day
Cumulative Plan Hours – the cumulative sum of planned working hours
Although the complete process was automatic, few inputs need to be given manually
such as planned production hours per day, setup time and maintenance time if required.
To make the daily planning automatic we prepared a logic using start hour, stop an hour
and cumulative plan hours.
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Logic -
If the present day’s cumulative hours is greater than stop hour or the start hour is greater
the next day’s cumulative hours, it says that production must have completed by this
date or should start later. If anyone condition agrees then we will fill that blank with “”
or zero it means no production else, we go to the next step.
Step 2 –
If the start hour is greater than present day’s cumulative hours and the stop hour is less
than next day’s cumulative hours, it means that the production run hours of that product
is less than the planned hours of that day. Therefore, we assign the product run hours
to that day.
Step 3 –
If the start hour is greater than present day’s cumulative hours and less than next day’s
cumulative hours, then the previous product was completed that day and we need to
produce the new product for remaining hours, (CPH2 – Start Hour) gives the remaining
time.
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Step 4 –
If the stop hour is greater than present day’s cumulative hours and stop hour less than
next day’s cumulative hours, it means the production needs to be ended that day and
we assign the remaining production amount to that day, else we are producing for the
complete day.
This logic will give the time available for production and we need to multiply products
per hour to get the total number of products to need to be produced.
Formula -
=IFERROR(ROUND(IF(OR($M12<=O$9,$L12>=P$9),0,IF(AND($L12>=O$9,$M1
2<P$9),$J12,IF(AND($L12>=O$9,$L12<P$9),P$9-
$L12,IF(AND($M12>O$9,$M12<P$9),$M12-O$9,O$10)))*$I12),0),"")
WIP Inventory – For molding process, we created a separate part name for family
groups now in this sheet we separate them to get the exact production quantity for each
product. We need to do this to plan post-molding, where each part has a different
process.
Post Molding Plan – For molding, we used dispatch dates just to give priority and
planned the production from the start of the month. However, in post molding the
planning needs to be done based on dispatch dates, using the production lead-time we
will complete the production one day before the dispatch. This is because our inventory
management was not that good, so it will be risky to keep finished goods in inventory
for a long time. For post-molding, we have six lines and products allotted to each line
based on their dispatch dates, one line we kept aside for reworks. Now for each product,
we start at the end of the month and for every dispatch, we take that dispatch amount,
calculate the lead-time and allocate that before dispatch based on available time. Here
this production quantity is allocated using the planned production time for that day and
dispatch quantity lead-time(VBA code explained in Annexure).
In this plan, I have given a buffer time of one day for every product and after every line
plan we have a check for that line, here we check the post-molding plan and WIP
inventory available that day. Therefore, if the WIP inventory is not available for that
particular day then it will be marked as red, and using this the planner can decide
whether we can deliver this product on time or not, If not can we outsource it or ask the
customer for delay in dispatch.
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For some products, the Molding process will be done in Mangaon plant and for these
products, the “demand” need to be given as “0” in Orders update sheet, so it will not be
planned for production. If the post-molding needs to be done here, then fill the WIP
inventory with the Demand and keep the demand as “0” so that the WIP Inventory will
be ready for Post-molding plan.
4.4. Testing
After preparing the rough model with a few products, I have tested this model by giving
extreme values and test it with different conditions. By varying the values of safety
stock and FG norms I have checked the “To be produced” values and EPQ calculations
by varying the Setup cost and Inventory cost. In EPQ, calculations showed some errors
due to the roundup function so changed it and verified it.
While checking the VBA code it is updating the new values but not clearing the old
ones, this is giving some errors while planning and to avoid this error I have included
a function to clear the sheet as the first step in the code and update with new values.
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5. Advantages and Limitations
5.1. Advantages
Reduced Planning time – It took five hours to prepare the complete plan for May
month, which used to take more than two days using the previous model. Therefore,
immediately after getting the orders the planner can prepare a plan in this model and
take the decisions fast.
More Flexible - In the manufacturing process, there is a possibility of unexpected
shutdown, in this model we can include that at any time in the month and generate the
plan for remaining days.
Reduced Human Intervention – Almost 80% of the model was automated but few
steps need human intervention to take decisions. This will help the planner to focus
more on decision making while preparing the plan.
More Feasible – Planning in this model was simple compared to the previous one and
any person having the basic idea on production process can plan the production.
5.2. Limitations
More Excel Knowledge – Few parts in the model are done using VBA coding, so if
the planner wants to make any changes to the model he needs to know the excel coding.
Post Molding – Through the molding process was more flexible, in post molding we
planned according to the dispatch dates so if there is any delay in the production process
the planner needs to be more attentive and make sure the production catches the plan.
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6. Conclusion
6.2. Recommendations
Each operation should have a process check sheet where the operator can check the
happening of each step, similarly with quality checking to reduce human errors. For an
inventory, it is better to maintain work in progress products then finished goods, and
racks should be used to store them and arrange them according to their customer
segment (strangers on top, repeaters at middle and runners at the bottom). Create a
feedback system or suggestion box where each employee can add their suggestions and
top-level management should check those suggestions. There should be a clear structure
for data management; collecting the data and updating it in SAP tool should be done
accurately.
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7. Annexure
Sub dispatch()
Dim epqlist As Integer
Dim displist As Integer
epqlist will take values from EPQ sheet and displist will fill the values in dispatch
sheet
displist = 5
For epqlist = 7 To 175
If Worksheets("EPQ").Cells(epqlist, 14).Value > 0 Then
If number of runs is greater than 0 then enter
Worksheets("DispatchSheet(M)").Cells(displist, 2).Value =
Worksheets("EPQ").Cells(epqlist, 2).Value
Copy the product name from EPQ sheet and fill it in Dispatch sheet and go to next
displist = displist + 1
End If
Next
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p=p+1
Next z
p=0
For z = 14 To 75 Step 2
Worksheets("Dispatch Sheet(M)").Cells(dispfill, z).Value = dispdata(p)
If Worksheets("Dispatch Sheet(M)").Cells(dispfill, z + 1).Value <
Worksheets("Dispatch Sheet(M)").Cells(dispfill, 7).Value Then
If WIP Inventory (z+1) is less than customer norms then fill that cell with red, and if
it is less then customer norm add plan quantity(production per run) for the next day
WIP inventory
Worksheets("Dispatch Sheet(M)").Cells(dispfill, z + 1).Interior.ColorIndex = 3
End If
p=p+1
Next z
End If
Next orderfill
Next dispfill
End Sub
Sub press2000T()
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noofruns = Cells(displist, 10).Value
ReDim prodbefore(noofruns - 1)
Introducing a new array where you can change its size every time based on number
of runs
Dim j As Integer
j=0
For k = 13 To 74
If Cells(displist, k).Interior.ColorIndex = 3 Then
If the cell color is red then copy that date to the prodbefore array, the number of red
cells will be equal to the number of runs
prodbefore(j) = Cells(3, k - 1).Value
j=j+1
End If
Next
For m = 0 To noofruns – 1
Using number of runs fill the priority list if 2 runs fill the name 2 times and fill the
wip end dates using array
Cells(prioritylist, 2).Value = Cells(displist, 2).Value
Cells(prioritylist, 5).Value = prodbefore(m)
If Cells(prioritylist, 5).Value = 0 Then Cells(prioritylist, 5).Value = 30
If safety stock need to be filled then they will not have any dispatch so check there
number of runs and fill last working date as there WIP end date.
prioritylist = prioritylist + 1
Next
End If
Next
End Sub
Sub wipinventory()
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Productlist is to check the list in WIP inventory sheet and moldinglist is to search that
in Moulding sheet
For productlist = 4 To 165
For moldinglist = 11 To 210
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7.3. Post Moulding Plan Sheet
Sub melectricline()
Dim k As Integer
p=1
Dim disp As Integer
disp = 0
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If Worksheets("PM Plan").Cells(meline, 13).Value = 3 Then
If the products need paint then we need to plan post molding 3 days before the
dispatch date
disp = dispdata(0) + dispdata(1) + dispdata(2)
p=3
Else
Else, start from one instead of zero to give a buffer time of 1 day
p=1
End If
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disp = disp + dispdata(p)
p=p+1
Next k
For k = 76 To 15 Step -2
If Worksheets("PM Plan").Cells(meline, k).Value > 0 Then
Till now we allocated the dispatch dates with one day buffer and now we allocate
them for production
If Worksheets("PM Plan").Cells(7, k - 1).Value - Worksheets("PM Plan").Cells(8, k -
1).Value > Worksheets("PM Plan").Cells(meline, k).Value * Worksheets("PM
Plan").Cells(meline, 8).Value Then
If the dispatch amount lead-time is greater than the difference between the planned
hours and allocated hours then assing the complete dispatch amount tot that day
Worksheets("PM Plan").Cells(meline, k - 1).Value = Worksheets("PM
Plan").Cells(meline, k - 1).Value + Worksheets("PM Plan").Cells(meline, k).Value
Using round function to get a perfect number of production.
Worksheets("PM Plan").Cells(meline, k - 1).Value =
Application.WorksheetFunction.Round(Worksheets("PM Plan").Cells(meline, k -
1).Value, 0)
Worksheets("PM Plan").Cells(meline, k - 1).Interior.ColorIndex = 37
ElseIf Worksheets("PM Plan").Cells(7, k - 1).Value - Worksheets("PM
Plan").Cells(8, k - 1).Value = 0 Then
If the available time is equal to zero then shift that production to the next day, means
we are running from backward so if our capacity is done with 21st then produce on
20th.
Worksheets("PM Plan").Cells(meline, k - 2).Value = Worksheets("PM
Plan").Cells(meline, k - 2).Value + Worksheets("PM Plan").Cells(meline, k).Value
ElseIf Worksheets("PM Plan").Cells(7, k - 1).Value - Worksheets("PM
Plan").Cells(8, k - 1).Value < Worksheets("PM Plan").Cells(meline, k).Value *
Worksheets("PM Plan").Cells(meline, 8).Value And Worksheets("PM Plan").Cells(7,
k - 1).Value - Worksheets("PM Plan").Cells(8, k - 1).Value > 0 Then
If the available time is less then dispatch lead-time and greater than zero, produce for
that remaining time
Worksheets("PM Plan").Cells(meline, k - 1).Value = (Worksheets("PM
Plan").Cells(7, k - 1).Value - Worksheets("PM Plan").Cells(8, k - 1).Value) *
Worksheets("PM Plan").Cells(meline, 10).Value
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Worksheets("PM Plan").Cells(meline, k - 1).Interior.ColorIndex = 37
Worksheets("PM Plan").Cells(meline, k - 1).Value =
Application.WorksheetFunction.Round(Worksheets("PM Plan").Cells(meline, k -
1).Value, 0)
Worksheets("PM Plan").Cells(meline, k - 2).Value = Worksheets("PM
Plan").Cells(meline, k - 2).Value + Worksheets("PM Plan").Cells(meline, k).Value -
Worksheets("PM Plan").Cells(meline, k - 1).Value
Send the remaining amount to the next day
End If
End If
Next k
dispamt = 230
End If
Next dispamt
Next meline
End Sub
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7.4. SIP Certificate
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8. References
1. Barlow, J. F. (2007). Excel models for business and operations management.
Chichester: Wiley.
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