PRESENTATION BY SHRIRAM PISTONS & RINGS LTD.

SLIDE NO. 1

Presentation by SHRIRAM PISTONS & RINGS LTD.

Presenter : J.P.Garyali
Date : 19th March 2008

OUTLINE OF THE COMPANY

SLIDE NO. 2

1. OUTLINE OF THE COMPANY

INCORPORATED IN 1972 TURNOVER CURRENT YEAR (2007-08) Rs. 6300 Million (Plan) TOTAL EMPLOYEES : 3640 TOTAL AREA : 26 ACRES

People Growing Together

OUTLINE OF THE COMPANY

SLIDE NO. 3

2. BRIEF HISTORY
Major Milestones
1993
DIVERSIFICATION INTO MANUFACTURE OF

TPM Milestones
2000

ENGINE VALVES STEEL RINGS

TPM KICK OFF

1995

DIVERSIFICATION INTO MANU FACTURE OF

2004

TPM EXCELLENCE AWARD (ACHIEVED)

2005

DIVERSIFICATION INTO MANFACTURING OF

NET SHAPED GEARS

ERECTION OF

2007

TPM SPECIAL AWARD

(ACHIEVED)

2006

6 NEW PLANTS GLOBAL CUSTOMERS.

FOR

OUTLINE OF THE COMPANY

SLIDE NO. 4

3. PRODUCT RANGE & VOLUMES

PISTONS

RINGS

14 12

(Million Nos.)
9.5 4.7 3.7 7.0

12.0

GOOD
(Million Nos.)

70 60 50 40 30 20 10 0

(Million Nos.)
36 23 30

(Million Nos.)

54

65

GOOD

10 8 6 4 2 0

2000

2002

2004

2006

Year

2008 Plan

2000

2002

Year

2004

2006

2008 Plan

PINS

ENGINE VALVES

14 12

(Million Nos.)
7.0 4.7 3.7

12.0 9.5

GOOD
(Million Nos.)

25 20 15 10 5 0

(Million Nos.)
15.5 10.0 4.7 3.5 2000 2002 2004 2006

20.0

GOOD

(Million Nos.)

10 8 6 4 2 0

2000

2002

Year

2004

2006

2008 Plan

Year

2008 Plan

OUTLINE OF THE COMPANY

SLIDE NO. 5

4. FOREIGN COLLABORATIONS

PISTONS
1. 3.

RINGS RIKEN RIKEN

KOLBENSHMIDT -GERMANY
(Collaboration since 1972)

RIKEN CORPN. JAPAN

(Collaboration since 1978)

PISTONS
2.

ENGINE VALVES
4.
FUJI OOZX JAPAN
(Collaboration since 1993)

HF
HONDA FOUNDRY JAPAN
(Collaboration since 1989)

OUTLINE OF THE COMPANY

SLIDE NO. 6

5. CERTIFICATIONS RECEIVED
2007 GLOBAL CUSTOMER SPECIFIC QUALITY SYSTEMS

FORD Q1 QUALITY SYSTEM

2006

RENAULT QUALITY SYSTEM

2003

TS 16949

2003

OHSAS 18001

2001

ISO 14001

PROCESS ORIENTATION TO QUALITY FOCUS ON SAFE WORKING

CONTROL ON WASTE & ENVIRONMENT

1999 1994

QS 9000

FOCUS ON CUSTOMER REQUIREMENTS FIRST STEP IN QUALITY DISCIPLINE

ISO 9001

First in the Industry

OUTLINE OF THE COMPANY

SLIDE NO. 7

6. MAJOR OEM CUSTOMERS

A) Major Indian OEM customers B) Major Global OEM customers

KIA MOTORS

HYUNDAI SIAM RIKEN

RIKEN

PRODUCT BRAND NAMES

No. 1 PISTON & RING EXPORTS

EXPORTS TO OVER 30 COUNTRIES

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 8

JOURNEY TOWARDS

TPM SPECIAL AWARD-2007

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 9

1. INTRODUCTORY ACTIVITIES Kick-off ceremony for TPM Special Award

Aug. 2004

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 10

2. ESTABLISHMENT OF TPM PROMOTION ORGANISATION Part 1 Organisation

Plant
Plant Steering Committee

Pillar Sub-committees

Kobetsu Kaizen Jishu Hozen

Plant TPM Secretariat

Planned Maintenance Quality Maintenance Initial Control Education & Training Office TPM Safety Health & Env.

Plants

Plants

Office

R&D

J.H. Circles

J.H. Circles

J.H. Circles

J.H. Circles

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 11

3. EVOLUTION OF INTEGRATED TPM PROMOTION ORGANISATION

Shriram New Production System

President
Company Wide TPM Steering Committee Medium & Long term Goals
Pillar Sub-committees

Strategic Projects
New OEM Business in India with Tata Motors New Type Product (Gears) for Global OEM Productivity increase In Piston Line - 5 New International OEM Business Salt core technology for Pistons for Euro IV Engine ERP Implementation New Design for Future Emission norms
J.H. Circles

Company Wide TPM Secretariat

Business & Strategic Planning Pillar

Kobetsu Kaizen Jishu Hozen Planned Maintenance Quality Maintenance New Equipment Initial Control Education & Training Integrated O TPM Safety Health & Env. R&D (New Product) Information Management Logistics Rationalization of Marketing Network

Plant
Plant Steering Committee Plant TPM Secretariat

Head Office
Head Office Steering Committee

Marketing
Marketing Steering Committee Marketing TPM Secretariat

Head Office TPM Secretariat

Plants

. Plants Office

R&D

CPMS

A/cs.

Adms.

O&P

OE Sales

Exp. Mkt.

After Tech. Mkt. Serv.

J.H. Circles

J.H. Circles

J.H. Circles

J.H. Circles

J.H. Circles

J.H. Circles

J.H. Circles

J.H. Circles Circles Circles Circles

Inception of New J.H. J.H. Pillars J.H.

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 12

4. FUSION OF CORPORATE MANAGEMENT & TPM

Overall Company

Consistency between medium & Long term goals and TPM goals
Level- 4
Corporate Goals : 2007

Vision

World Class Supplier Status World Class Quality at Lowest Cost in India Rs./Mil Turnover :9000 G. Profit :1600 Rs./Mil Turnover :12000 G. Profit :2200

Corporate Goals

Level- 3 Level- 2 Level- 1

Competitive cost based Company

Preferred OEM supplier in India Turnover: 6300 G. Profit : 1110

Rs./Mil

Turnover: 3700 G. Profit : 748

Rs./Mil

8 Pillars

12 Pillars

12 Pillars

12 Pillars

IIIIIIII IIIIIIIIIIII IIIIIIIIIIII IIIIIIIIIIII

2004

TPM PART 1

TPM PART - 2

2007

2010

2012

TPM PART 3

TPM PART - 4

YEAR

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 13

5.

DEVELOPMENT OF SPECIAL INNOVATIVE ACTIVITIES

5.1 Development & application of new concept of PROFIT TREE

Efficiency
SALES

GROSS PROFIT

Cost Structure
TOTAL COST

O.E.E

WORKS EFFICIENCY
RAW MATERIAL COST

VARIABLE COST

FIXED COST

AVAILABILITY RATE

PERFORMANCE RATE

QUALITY PRODUCT RATE

ENERGY COST

DIRECT CONSUMMABLE COST

PERSONNEL COST

ADMN. COST

FINANCE COST

BREAK DOWN LOSS

SETUP& ADJUST LOSS

TOOL CHANGE LOSS

STARTUP LOSS

MINOR STOPPAGE LOSS

SPEED LOSS

QUALITY DEFECT LOSS

INSPECTION LOSS

YIELD LOSS

ENERGY LOSS

CONSUMA -BLE LOSS

TOOL ,JIG & DIE LOSS

LABOUR PRODUCTIVITY LOSS

OFFICE LOSS

INVENTORY LOSS

IMPROVEMENT THEMES

IMPROVEMENT THEMES

A very effective tool for loss reduction

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 14

5.2 Development & application of NEW PRODUCTION SYSTEM Shriram New Production System (SNPS)

Lowest Cost Plant

Continuous Operating Plant

Zero Inventory Plant

Customer Delight Plant

Reduction in Variable Cost

Reduction in Fixed Cost

Manless Operation M/c

Lead Time Reduction

Defect Free Products

Developing, of New Products

Environment Friendly Plant

Consum- Logistics Raw Cost Material -able Cost Cost

Energy Cost

Labour Cost

Admn. Finance Cost Cost

Trouble Free Equip.

Minimum Minimum Improve Reduce Inventory Inventory Process Customer of Raw of work in Capabi- Complaint Process Material -lity

For Product Performance Improvement

Pollution & Leakage Free Plant

Redesign Reduce Packag- TranspFor Reduce ortation Lower Purchase -ing Yield Cost Cost Cost Loss Product weight

Oil Electric Power Consum-ption ReducReduction tion

Reduce Reduce Direct Indirect Cost Cost

Rectify/ Reduce Simplify Interest all Cost Indirect process

Zero Zero Zero Breakd- Minor Defect own Stoppage Modes

Reduce Online ProcurrSupply ement Cycle of time Raw of Material Raw Material

Single Cellular Multis- Reduction Clubbing Online Elimin- InspecPiece Produc- killing in set Flow tion tion up/adjus. ation of line Tment operation time

Improve Process Quality

Prevention of Defect Out flow

For Control Shining Better of Shop Field Hazarfloors Perfordous mance chemicals

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 15

5.3 Development of New Business Strategy Model

1. Focus Market
Which product categories? Which market segments? Which geographic areas? Which core technologies? Which value-creation stages?

1.
Focus Market

4. Sequence/Timing
Speed of expansion? Sequence of initiatives?

4.
Sequence/ Timing

5.
Sales & Profit Growth & Leadership

2.
How to get There

2. How to Get There?

Internal development? Licensing? Out Sourcing? Joint ventures? Acquisitions?

5. Sales & Profit Growth & Leadership

Lowest costs through scale advantages? Lowest costs through scope and replication advantages? Premium prices due to unmatchable service? Premium prices due to proprietary product features?

3.
How to Win

3. How to win?
Image? Technology? Customization? Product Quality? Reliability? Relationship? Response Time? Price?

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 16

5.4 Focus on Strategic New Product Development

NS Gears New Type of Products in New Area Strategic New Product development (NPD) Connecting Rods Aluminum Castings Pistons

New Products

New Products in Existing Range

Rings

Engine Valves

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 17

5.5 Establishment of New Technology Road Map

ap dm
New Technology Roadmap ENGINE VALVES

a Ro

New Technology Roadmap RINGS

New Technology Roadmap PISTONS

ee l Al um in um St

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 18

5.6 Implementation of ERP

Accurate online information Complete Integration

Better visibility of Inventory

HO and Marketing

RSO/Field Godowns Customers

Vendors Plant Manufacturing Plant Office area

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 19

5.7 Overall integration of company activities from Suppliers to Customers for smooth operations
On Time Supply
240 Nos.

BACKWARD INTEGRATION
Suppliers Purchase
Information

PRODUCTION

FORWARD INTEGRATION
Marketing
Information

On Time Delivery
31 Countries 10 Companies 38 Nos. 250 Customers

Production Control

Exports OEMs

25 Nos.

Vendors
750 No. of Suppliers/ Vendors Production Value
(Million Rs./Year)

Quality Assurance

Selecting, Grooming & Focusing on chosen Suppliers/ Vendors

Suppliers/ Vendors

Delivering Quality Products at Competitive Prices to Customers

1000

Logistics

After Market

6000 6000

Production Value

5190 4312

800 800

1000

4.4
Operating Profit
(Million Rs./Year)

Marketing Cost
(as %age of Sales)

5.0 5

(Million Rs./Year)

595
500

400 400

500

Operating Profit
(Million Rs./Year)

2000 2000

265 1827 205 2001 2002 2003 2004 2005 2006 2007

2.5 Manpower (Nos.) 2004 2005 2006 2.0 123 2007

3.0 3
2 2.0

200 200
00

250

250 0

230 119 2000

00

2000

1 1.0

TPM Part 1
Evaluation System
No Formal Evaluation System Formal Evaluation System Introduced

TPM Part 2
Point Based Evaluation System
OEE DOL Maintenance Quality Control Guidance on 5 S Self Certified Suppliers Direct On Line
70 60 50 40 30 20 10 0

TPM Part 1
Rank Based System

TPM Part 2
Deliveries Trend
100%

(%)
20 20 20 40 30 30 30 30 40 40 40 10 10
2000 2002 2004 2006

Vendor Guidance
Incoming Quality Inspection Vendor Quality Audit Quality Certificatio n

No Formal Guidance
All Components No Mechanism for Audit No Quality Certification

Maintenance Quality Control Guidance on 5 S

OEE Maintenance Quality Control Guidance on 5 S R M , BOC Tooling Ancillary Jobs

Online Inspection
Self Certified/ DOL Supplies (%) 60 Self Certified 0
2003 2004 2005 GOO D

Delivery Frequency

Monthly Deliveries

Weekly Deliveries

Daily Deliveries

Online

75%

50

Online Daily
Weekly

50%

25%

50

50

0%

10
2007

Supplier / Vendor Management

Selected Components

Random Sampling

30
2006 2007

DOL

Segment wise Sales

After Market Network Rationalisation

Major focus on OEM & Export segments

Supplier to Solution Provider Assist in Developing better products

Segment-wise Sales
7000 6000 5000 4000 3000 2000 1000 0

(Million Rs.)
5277
1099

6300
1260

3 times Increase in Sales Exports

OEM After Market

3709
688 3465 2947 1972

2109
327 968 872
2000

2518
375 1263 1048
2004

Quarterly Audit

Six Monthly Audit

Performance Based Audit

12

Reduction in Defective Supplies (%) 10

8
GOOD

879
2002

1231

1575

2006

2007

0
2001 2002 2003 2004 2005 2006

0.5
2007

Information Collection Skills

Logistics / Marketing

Certified Suppliers/Vendors
(%)
100% 75% 50% 25%
550 725 345 250 225 200 0 0 25 0 20 5 35 8 22 10 25 10 20

TS 16949 QS 9000

Training

Competitors Product Knowledge Product Knowledge

Fundamental Skills

Brand Management, Advertising, Sales Promotion Information Analysis

Advanced Skills

ISO 9000
100 80 50 40 35

ISO 9000

0%
2001 2002 2003 2004

Uncertified

2005

2006

Suppliers- Rank wise

(Nos.)

Control Method

Development of Alternative Source

Supplier /

Considering reduction in Business Share

100%

Quality Penalty

Business Share, Rewards & Recognition

20

25 20

30

75%
25

A Rank

50% 25% 0%

30 15 20 25 40 35 15
2005 2006 2007

B Rank C Rank D Rank

Online Packing

Response Time for customer

Reduction in Response Time

16

15

(Days)

(as %age of Sales)

2006

(Nos./Year)

4000 4000

Minimum Lead Time

750

750

702

4.0 4

All activities from Head Office Component

RSOs established
for faster handling of customer enquiries

CFTs formed to provide faster response

12

0
2000 2001 2002 2003 2004 2005 2007

Ontime Supplies
(%)
GOOD

On Time Supplies

Fortnightly Supplies

Weekly Supplies

Daily Supplies

100

DOL Supplies

Suppliers 80

100 95 Vendors

75

70
50
2000 2001 2002 2003 2004 2005 2006

Supplies of Bundle products

Piston

Assembly
Piston

Piston

Kit

Piston

Sub-assembly
Connecting Rod

Supplies -Category wise

2% Sub-assembly Kit 5%

Rings

Rings

Pin

Rings

Pin

80%

Assembly

2007

13% Vendor Capacity Enhancement

(Million Nos./Year)
0.8 0.7 0.7 0.5 0.6 0.5 2.0 0.5 0.45 0.36 0.8 0.2
2001

Component

Vendor Capacity Enhancement

Finishing Operations

4.5 4.0 3.5

Semi Finished Operations Intervening Operations Initial operations like Parting/ Shearing Intervening Operations Initial operations like Parting/ Shearing

Semi Finished Operations Intervening Operations Initial operations like Parting/ Shearing

3.0 2.5 2.0 1.5 1.0 0.5 0.0

0.48

2.5 times Pins increase

Valves Rings

6.5

Logistic Cost Trend

6.2 (%)
GOO D

0.6

0.4 1.5 1.0 0.25

2002

1.8 1.2

Logistic Support

Dispatches from Plant

Field Godowns

Units

Customers

6 5.5 5 4.5

0.3
2003

0.38
2004

0.45
2005

0.5
2006

Pistons

4
2003 2004 2005 2006 2007

Marketing Cost
GOO D

600 600

4.9

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 20

5.8 Indigenous development of NEW STEPS (under Autonomous Maintenance activity)

Step -7 Step -6 New Step -3 New Step -2 New Step -1

All out Autonomous Management

JIPM Steps

Standardization Trouble Free Equipment /Operation New Indigenous Steps

For effective Sustenance

General Inspection of Setup General Inspection of Quality

Intensification of Jishu Hozen Activity Step -5 Step -4 Step -3 Step -2 Step -1 Autonomous Inspection

General Inspection Tentative Standards

JIPM Steps

Countermeasure for Hard to Access Area & Contamination Sources

Initial Cleaning & Inspection

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 21

5.9 Implementation Approach for New Steps Approach for New Step-1

(General Inspection of Quality)

Education & Training on General Inspection of Quality

General Inspection of Quality standard

Implementation of General inspection of Quality

General Inspection of Measuring Instruments

General Inspection of Equipment from Quality Perspective . ( Vibrations, Leveling & Static Accuracy)

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 22

(General Inspection of Setup)

Approach for New Step-2

Education & Training on General Inspection of Setup

Preparation of Set up& Adjustment Procedures Identification of Problem & Improvement Areas Standardization of Set up Procedures

Implementation of General inspection of Setup

Evaluation of Setup Time

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 23

Approach for New Step-3

Trouble Free Equipment/ Operation

Zero Leakage

Zero Minor Stoppage

Zero Adjustments during Operation

Zero Defect

Zero Break Down

Zero Accident

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 24

5.10 New Approach for Planned Maintenance Activity

Planned Maintenance Activity

New Approach

establishment of Planned Maintenance system

6 Step approach for

Kaizen activities based on

Maintenance skill

STEP - 6 STEP - 5 STEP - 4 STEP - 3 STEP - 2 STEP - 1

EVALUATE PLANNED MAINTENANCE SYSTEM BUILD PREDICTIVE MAINTENANCE SYSTEM

Productivity Improvement Manufacturing Cost Reduction Quality Improvement

BUILD PERIODIC MAINTENANCE SYSTEM BUILD INFORMATION MANAGEMENT SYSTEM

RESTORE DETERIORATION & IMPROVE WEAKNESS EVALUATE EQUIPMENT & GRASP PRESENT STATUS

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 25

6. SOME BREAKTHROUGH ACTIVITIES

6.1 Doubling Production in Existing Factory

Example
1. Reduction in set up time. 2. Reduction in cycle time. 3. Line balancing by de bottlenecking. Approach in Piston Plant for Doubling Production 4. On line inspection. 5. Challenging the lunch hour. 6. Outsourcing the rough operations etc.

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 26
WIP WIP Process C
Inspect ion Packing

6.2 Innovation in Production System

WIP WIP Process B

Batch Process

Process A
Machine

WIP

WIP Process Process B C

WIP

Line Process

Process A
Machine

Inspect ion

Packing

WIP

WIP
Packing

Continuous Flow Lines

Process A
Machine

Process B

Process C

Inspect ion

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 27

7. People Development
Classroom Trainings On Job Trainings
OEE Focused Equipment Structure Jishu Hozen OEE Tree Equipment
O.E.E. IN %

Kaizen Ability Quality Monitoring Setup & Adjustment OEE Focused Equipment Structure Jishu Hozen

Vibration Pen
AVAILABILITY
100
AVAILABI LITY IN %

O.E.E. CHART
100 95 90 85 80 75

GOOD 88 85 79 86 89 88 90 91 91

TARGET
90%

70
70 65 60 55 50 45 40 35 30 25 20
(BENCHMARK)

56

36

36%

2007

JAN-00

2000

2001

2002

2003

2004

2005

2006

Apr-07

May-07

Jun-07

Jul-07

(TARG ET )

MONTH

Function Chart

Operator strong at both Equipment & Tasks

PERFORMANCE RATE
TARGET
PER FORM AN CE R ATE IN %

QUALITY PRODUCT RATE

TARGET
100
QUA LI TY PR ODU CT RA TE I N %

95 90 85

95 92

96

98

97

96

96

95

95

96

95

96%

80 78 78% 75 70 65 (BENCHMAR K) 60
JAN-00 2000 2001 2002 2003 2004 2005 2006 Apr- 07 May-07 Jun-07 Jul-07

GOOD

100 95 90 85 80 75 70 61 65 60 55 47 47% 50 45 40 35 30(BEN CHMA RK) JAN-00 2000

87 82 73

90

92

93

93

95

95

96

TARGET 98.9 99.48 99 .83 99. 97 9 9.95 99.9 6 99 .96 99 .98 99.99 99.99 9 9.98 99.99 100 %

95%

98 96 94 92 90 88 86

98.9%

GOOD

GOOD

2007
(T ARGET)

MONTH

(TAR GET)

2007

2001 2002

2003

2004

2005 2006 Apr- 07 May-07 Jun-07 Jul-07

(BENCHMARK)

JAN- 00

2000

2001

2002

2003

2004

2005

2006

Apr-07

May-07 Jun- 07

Jul-07

2007
(TARGET)

MONTH

MONTH

Set Up Time
14 0 12 0 10 0
I N M N. I

EQUIPMENT FAILURE
10 0 50 0
80

TOO L CHANGE & ADJUSTMENT

1 00 90 395 45 0 40 0

NET OPERATING RATE

90 82 73 61 87 92 93 93 95 95 96 95

SPEED OP ERATING RATE

100
1 00 90 80 0.4

REJECTION DATA
1 00

100

100

100

100

100

100

100

100

100

100

0.5

129

80

GOOD
288
%

80 70 60 50 40

GO OD
B/ D IN M IN.

T IM E IN M IN.

GOOD
60
39

35 0 30 0 25 0 20 0 15 0 173 151 114 88 83 81 79 78 78 10 0 80

GOOD
%

70 60 50
%

GOO D
0. 8 2

GOOD
0.3

80 60 40 20
56 48 32 23 23 22 21 20 20 21 20

40 30 20 10 0 A g. v Y ar e 200 0 Avg. Year 20 01 Avg. Yea r 2 002 A g. v Y ar e 200 3 Avg. Year 20 04 Avg. Yea r 2 005 A g. A v pr-07 May -07 J un-07 J ul-07 Target Y ar e 200 6 Avg. Yea r 2 000 Avg. Yea r 2 001 Avg. Yea r 2 002 Avg. Yea r 2 003 Avg. Yea r 2 004 Avg. Ye ar 2 005 A g. Apr-0 7 Ma y-07 J un-07 Jul-07 Target v Ye ar 200 6

40

30 20 10 0

0.2
0 .13

20

19 12 0 11 0 0 0 0 0 0

50 0
Avg. Year Av g. Ye ar Avg. Year Av g. Avg. Ye ar Y ear 200 3 Av g. Avg. Ap r- 7 M ay- 07 Jun -07 Jul 07 Targe t 0 Ye ar Y ear 2005 2006

0.1

0.09 0. 4 0 0. 3 0 0.04

Jishu Hozen My Machine concept

Clean machine No Leakages No Scattering

Operator with sound knowledge about Equipment

0
0.0 1
Avg. Av . g Year 2001 Avg. Avg. Av . g Year 2004 Avg. Avg. A pr 07 M ay- 0 Jun- 07 Jul- 07 Target 7

Year 2000

Year 2002

Year 2003

Year 2005

Year 2006

Avg . Year 2000

A vg. Y ear 20 01

Avg . Year 2002

A vg. Y ear 20 03

Av g. Avg. Ye ar Y ear 2004 2005

Av g. Apr- 07 M ay- 07 Jun- 07 J ul- 07 Target Ye ar 2006

0.0 2

0. 1 0

0.01

0.0 2

0 .00

0.0

2000

200 1

2002

2004

MONTH

A vg. Ye ar A vg. Y ear A Year A vg. Ye ar A vg. Ye ar A vg. Y ear A . Yea r A pr-07 vg. vg 2000 200 1 20 02 2 003 200 4 200 5 2 006

Ma y- 7 0

Ju n-07

Jul -07

Targ et

Course Modules

I Operate
Dirty machine Leakages Scattered Chips

High Awareness about Equipment

Production oriented approach

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 28

Upgradation of Employee Morale

GENERAL HEALTH
HEALTH CHECKUP CAMPS FOR EMPLOYEE & THEIR FAMILY MEMBERS

Cancer detection camp Chief guest Hepatitis B Vaccination camp

- Serious Diseases, Cancer, Tumor, TB etc detected at each stage , treatment at Govt. Hospital

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 29

Yoga Naturopathy Meditation

YOGA CLASSES

- Separate yoga/meditation center proposed

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 30

HOLI

CULTURAL ACTIVITIES
(Celebrating all major festivals)

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 31

SHRIRAM JAYANTI

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 32

NATIONAL INTEGRATION DAY

- Each function is also a communication forum where chief guest &CEO shares the views with the employees.

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 33

SPORTS ACTIVITIES

- National & State level players in Shooting ball & kabaddi - District level cricket team

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 34

REWARD & RECOGNITION Worker of the month Blood donors Best suggestor Best sportsman High performing children Best attendance

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 35

WORKERS PARTICIPATION IN DECISION MAKING

Canteen Managing committee Welfare Co-ordination committee Sports committee Suggestion committee Entertainment committee Safety committee Grievance redressal committee

- Direct participation of more than 400 employees - Representation from all plants

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 36

COMMUNITY DEVELOPMENT
Development of park for children

Sewing & knitting school for ladies

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 37

8.
50

TANGIBLE RESULTS
Overall Equipment Efficiency
GOOD
110 100

Plant Labour Productivity

(Th.Parts/Man/Year)
84 % Increase
40

(% age)
85 54 86

63 % Increase

GOOD
88

Th.Parts/Man/Year

30

%age

25 19

29

32

35

90 80 70 60 50 40 30

87

20

10

20 10

B.M.-1 2000

B.M.-2 2004

Year

Actual 2006

Actual 2007

Target 2008

B.M.-1 2000

B.M.-2 2004

Year

Actual 2006

Actual 2007

Target 2008

Manufacturing Cost trend

90 80 70 60

Production Lead Time Trend

30

82.1

70.5

(As

%age of Sales) Reduction by 12 % 76.7 72.6 72

GOOD
Days

25
25

(From Sales Plan to Delivery) (No. of Days)

20 18 10

GOOD
Reduction by 76 %

20

%age

50 40 30 20

15

10

5
10 0

B.M.-1 2000

B.M.-2 2004

Year

Actual 2006

Actual 2007

Target 2008

B.M.-1 2000

B.M.-2 2004

Year

Actual 2006

Actual 2007

Target 2008

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 38

Breakdown Frequency Trend

(category wise)
(Nos./Year)
648
800 700 600 500

Defect Rate Trend

20

(% age)
GOOD

GOOD

400 300 200 100 0

Major Medium Minor

118
Reduction by 88 %

15

10.3
%age
10

Nos.

7.3

6.1

5.2

Reduction by 81 %

92 Actual 2006

2.0

78 Actual 2007

0 Target 2008
0

B.M.-1 2000

B.M.-2 2004

Year

B.M.-1 2000

B.M.-2 2004

Year

Actual 2006

Actual 2007

Target 2008

No. of Reportable Accidents

2.5

No. of Suggestions
20

(Nos./ Month)
2

(Nos/year/employee)
14.0

785% Increase

GOOD

GOOD
Nos./Year/Employees
15

17.0

Nos./ Month

11.0 10.6

1.5

10

0.58

Zero Accidents since 3 years

0.5

1.92

0
B.M - 1 2000 B.M - 2 2004 2006 Actual

0
2007

0
Target 2008

B.M - 1 2000

B.M - 2 2004

2006

Actual 2007

Target 2008

Year

Year

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 39

9.

INTANGIBLE BENEFITS

Harmonious Relations Plant, Marketing & H.O.

Neat & Clean Shop Floors

TPM SPECIAL AWARD JOURNEY

SLIDE NO. 40

Visits of Foreign Delegates/ Customers.

Business Opportunity Through Visits of Foreign Delegations

Senior Delegates from Japan & Germany

PRESENTATION BY SHRIRAM PISTONS & RINGS LTD.

SLIDE NO. 41

END OF PRESENTATION