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L&T Heavy Engineering Quality a Way of Life Commitment to Quality From Staff, Technicians and

L&T Heavy Engineering

Quality a Way of Life Commitment to Quality From Staff, Technicians and Contractors in Labour
Quality
a Way of Life
Commitment to Quality
From Staff, Technicians and Contractors in Labour Intensive Sector
012 Larsen & Toubro Limited : All rights reserved 16 th May 2013, Conference on
012 Larsen & Toubro Limited : All rights reserved
16 th May 2013, Conference on
Quality Systems for Sustainable Manufacturing Growth

Atul Paranjape, GM, QA Powai, Talegaon, Coimbatore Atul.Paranjape@Larsentoubro.com

16 May 2013

Larsen & Toubro Limited

S R Ramanujam

JGM Manufacturing, Powai SR.RAMANUJAM@larsentoubro.com

Case Study:

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L&T Heavy Engineering

Topics
Topics
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Larsen & Toubro Limited

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16 May 2013

L&T – Businesses

L&T Heavy Engineering

Heavy Engineering Hydrocarbon E&C Infrastructure & Construction 012 Larsen & Toubro Limited : All rights
Heavy Engineering
Hydrocarbon
E&C
Infrastructure
& Construction
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Industrial Machinery Power – E&C
Industrial
Machinery
Power – E&C

16 May 2013

Larsen & Toubro Limited

Electrical & Automation

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Quality & EHS Certifications

L&T Heavy Engineering

ISO 9001 : 2008 ISO 14001 : 2004 OHSAS 18001 : 2007
ISO 9001 : 2008
ISO 14001 : 2004
OHSAS 18001 : 2007
ISO 9001 : 2008 ISO 14001 : 2004 OHSAS 18001 : 2007 16 May 2013 reserved

16 May 2013

: 2008 ISO 14001 : 2004 OHSAS 18001 : 2007 16 May 2013 reserved 4 of
: 2008 ISO 14001 : 2004 OHSAS 18001 : 2007 16 May 2013 reserved 4 of
reserved 4 of 40
reserved
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IQRS Level 8

L&T Hazira

Larsen & Toubro Limited

Manufacturing locations

L&T Heavy Engineering

Ranoli : Exotic Materials Hazira : Super Heavy, Forging Powai : Heavy Engg Talegaon :
Ranoli :
Exotic Materials
Hazira :
Super Heavy, Forging
Powai :
Heavy Engg
Talegaon :
Defense
Oman :
Heavy Engineering
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Bengaluru :
Avionics
Coimbatore :
Kattupalli :
Precision Mfg
Ship Building

16 May 2013

Larsen & Toubro Limited

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Manufacturing Locations …

L&T Heavy Engineering

Year established Area (Sq. m)

Capacity (MT p.a) :

: 1987 : 36,00,000

2,00,000

Hazira Manufacturing Complex

Sohar, Oman

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Year established Area (Sq. m) Capacity (p. a) : 2009 : 400,000 : 10,000 MT
Year established
Area (Sq. m)
Capacity (p. a)
: 2009
: 400,000
: 10,000 MT

16 May 2013

Larsen & Toubro Limited

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L&T Ship Building

L&T Heavy Engineering

Workshops Cross transfer Area Ship Lift Finger Jetty 012 Larsen & Toubro Limited : All
Workshops
Cross transfer
Area
Ship Lift
Finger Jetty
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Platform Raised
…with Ship
Platform Lowered
Ship Lift
16 May 2013
Larsen & Toubro Limited
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L&T Special Steels & Heavy Forgings Pvt Ltd

L&T Heavy Engineering

JV (74: 26)
JV (74: 26)
JV (74: 26)

JV (74: 26)

Special Steel

100,000

MT/annum

16 May 2013

Covered Shop area: Approx. 65,000 m 2 012 Larsen & Toubro Limited : All rights
Covered Shop area: Approx. 65,000 m 2
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Single piece Ingot up to 600 MT

Forgings Up to

• Diameter : 6.5 m

: 5.0 m

• Height

Larsen & Toubro Limited

Nuclear grade Alloy Stainless steel

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Products: Process Equipment

2010

Heaviest Hydrocracker Reactor : KNPC

L&T Heavy Engineering

KNPC Hydrocracker Reactor – 1540 MT, 308mm

RPL Jamnagar FCC Regenerator 1320 MT, 16.3 M Diameter

16 May 2013

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Larsen & Toubro Limited

1999

2007

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Site Assembly

L&T Heavy Engineering

2009 Coal Gasifier: Hebi, China Weight 1300 MT
2009
Coal Gasifier: Hebi, China
Weight 1300 MT
Engineering 2009 Coal Gasifier: Hebi, China Weight 1300 MT Nuclear Power: Fast Breeder Reactor Safety Vessel

Nuclear Power: Fast Breeder Reactor Safety Vessel (13 m Dia) with Reflective Insulation

2009

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16 May 2013

Larsen & Toubro Limited

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Weapon Systems & Radars

L&T Heavy Engineering

Pinaka Multi Barrel Rocket Launcher Trishul Launcher 012 Larsen & Toubro Limited : All rights
Pinaka Multi Barrel Rocket Launcher
Trishul Launcher
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Namica

Akash Air force Launcher

16 May 2013

Larsen & Toubro Limited

Platform for Radar Rohini

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Ship Building

L&T Heavy Engineering

Defense: India’s 1st Nuclear Submarine – INS Arihant Commercial: Special Purpose Vessel 012 Larsen &
Defense:
India’s 1st Nuclear Submarine – INS Arihant
Commercial:
Special Purpose Vessel
012 Larsen & Toubro Limited : All rights reserved

16 May 2013

Larsen & Toubro Limited

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L&T Heavy Engineering

Challenges
Challenges
Labour Intensive: Custom Built: Large Workforce Wide Range of Skill Levels Multi-skilling Engineer-to-order Wide
Labour Intensive:
Custom Built:
Large Workforce
Wide Range of Skill Levels
Multi-skilling
Engineer-to-order
Wide Range of Standards
Modular Manufacturing
Quality in
ETO Industry
Project Industry:
Mission Critical:
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Multi-location
Multi-Site
Complex Supply Chain
Critical Application Areas
Severe Operating Conditions
High Risk on Failure

16 May 2013

Larsen & Toubro Limited

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L&T Heavy Engineering

Topics
Topics
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012 Larsen & Toubro Limited : All rights reserved

Larsen & Toubro Limited

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16 May 2013

L&T Heavy Engineering

Quality Formula
Quality Formula

P

Q = ------

E

L&T Heavy Engineering Quality Formula P Q = ------ E Performance ----------------- Expectation > 1 What
Performance ----------------- Expectation
Performance
-----------------
Expectation
> 1
> 1
What Customers want? 012 Larsen & Toubro Limited : All rights reserved Cheaper! Better!! Faster!!!
What Customers want?
012 Larsen & Toubro Limited : All rights reserved
Cheaper!
Better!!
Faster!!!

16 May 2013

Larsen & Toubro Limited

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L&T Heavy Engineering

Is there a Conflict?
Is there a Conflict?
Reliability Q U A L Business Need I T 012 Larsen & Toubro Limited :
Reliability
Q
U
A
L
Business
Need
I
T
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Cost
Delivery
Y

16 May 2013

Larsen & Toubro Limited

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L&T Heavy Engineering

Accuracy OR Speed?
Accuracy OR Speed?

Long term Needs

Product Work Reliability Carefully Meet Customers & Needs Work Speed Fast 012 Larsen & Toubro
Product
Work
Reliability
Carefully
Meet
Customers
&
Needs
Work
Speed
Fast
012 Larsen & Toubro Limited : All rights reserved
Short term Needs
As per
QUALITY SYSTEM
The ‘ & ’ Paradigm
The ‘ & ’ Paradigm

16 May 2013

…Quality & Speed & Cost Effective

Larsen & Toubro Limited

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L&T Heavy Engineering

Topics
Topics
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012 Larsen & Toubro Limited : All rights reserved

Larsen & Toubro Limited

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16 May 2013

L&T Heavy Engineering

Journey towards Proactive Safety/ Quality
Journey towards Proactive Safety/ Quality

Incident & Injury Rate

No System, Individual Dependent Reactive Era (Incident Based) Accident Reports, Analysis, Correction Preventive Era
No System,
Individual Dependent
Reactive Era (Incident Based)
Accident Reports, Analysis, Correction
Preventive Era (Process Based)
Unsafe Condition Report, Improve
ZEROonly through
Behavioral Aspects
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Human Side of Safety
1940
1950
1960
1970
1980
1990
2000
Number of Incidents

IIF (Incident and Injury Free) ® by JMJ Associate

Incident & Injury

16 May 2013

Larsen & Toubro Limited

Nonconformity

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L&T Heavy Engineering

Quality Control Paradigms
Quality Control Paradigms
L&T Heavy Engineering Quality Control Paradigms Preventive • Design Intent • In-Process • Audit • QA
Preventive
Preventive

Design Intent In-Process Audit QA

Proactive
Proactive

User Need Natural Behaviour Based BBQ

Reactive
Reactive

Specification Stage-based Inspection QC

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Product Control
Product Control

16 May 2013

Process Control
Process Control

Larsen & Toubro Limited

Mind Control
Mind Control

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Daag se Darna Manaa Hain! Don’t be afraid of the dark !
Daag se Darna Manaa Hain!
Don’t be afraid of the dark !

L&T Heavy Engineering

ISO 9001 8.5.2 “Corrective Action” The organization shall take action to: Eliminate the cause of
ISO 9001 8.5.2 “Corrective Action”
The organization shall take action to:
Eliminate the cause of nonconformities in order to
Prevent recurrence.
Corrective Actions: Appropriately address effects of nonconformities.
Actions: Appropriately address effects of nonconformities. Image of NC • Penalize the Doer • More NCR,

Image of NC

Penalize the Doer

More NCR, Worse Quality

Image of NC • Penalize the Doer • More NCR, Worse Quality Reluctance to issue NCR

Reluctance to issue NCR

Need to Remove “Negative” Image of NC 012 Larsen & Toubro Limited : All rights
Need to Remove
“Negative” Image of NC
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Plan
Act
Do

NC Analysis is a Tool for improvement

16 May 2013

Larsen & Toubro Limited

Chk
Chk

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L&T Heavy Engineering CAQs (New Observation System) No Sab Chalta hain Don’t tolerate Non-sense !

L&T Heavy Engineering

CAQs (New Observation System) No Sab Chalta hain Don’t tolerate Non-sense !
CAQs (New Observation System)
No Sab Chalta hain
Don’t tolerate Non-sense !
1 Major Nonconformity 29 Minor Nonconformity 300 Near Misses CAQ: Conditions Adverse to Quality
1
Major Nonconformity
29
Minor Nonconformity
300
Near Misses
CAQ: Conditions Adverse to Quality
Observation or Alert • Based on: Actual Event or Condition • For Avoiding: POTENTIAL Damage/
Observation or Alert
• Based on:
Actual Event or Condition
• For Avoiding:
POTENTIAL Damage/ Re-work
• Enhancing:
Sensitivity to Quality

012 Larsen & Toubro Limited : All rights reserved

012 Larsen & Toubro Limited : All rights reserved Heinrich‘s law for Incident Major Incident :Minor

Heinrich‘s law for Incident

Major Incident :Minor Incident: Near Misses =1 : 29: 300

16 May 2013

Larsen & Toubro Limited

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L&T Heavy Engineering “KLEPPA” Pride in your Work ! Real Motivation for Quality Knowledge •

L&T Heavy Engineering

“KLEPPA” Pride in your Work !
“KLEPPA”
Pride in your Work !
Real Motivation for Quality Knowledge • Product is worker’s baby. Love • Where his baby
Real Motivation for Quality
Knowledge
• Product is worker’s baby.
Love
• Where his baby goes/ works?
Enjoy
“KLEPPA”
• How his baby functions?
Pride
• What his baby contributes to?
Participation
• More “KLEPPA” More care of baby!!
Awareness
Quality Improvement
Confucius: Knowing is not as good as Loving; 012 Larsen & Toubro Limited : All
Confucius:
Knowing is not as good as Loving;
012 Larsen & Toubro Limited : All rights reserved
Loving is not as good as Enjoying

Know what’s Required

Pride in my Output

Source: JGC Quality System

16 May 2013

BBQ:

Love my work

Part of Winning Team

Larsen & Toubro Limited

Enjoy Doing It

Aware of Big Picture

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L&T Heavy Engineering

Topics
Topics
 012 Larsen & Toubro Limited : All rights reserved
012 Larsen & Toubro Limited : All rights reserved

Larsen & Toubro Limited

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L&T Heavy Engineering

Organization Quality
Organization
Quality

Quality Management (QM)

Quality Planning (QP) QA, QRMs, Vendor Quality Project Specific Certifications • ASME Quality Manual •
Quality Planning
(QP)
QA, QRMs, Vendor Quality
Project Specific Certifications
• ASME Quality Manual
• Align to Customer Requirement
• Study Advance Drawings
& Process Plans
• Compilation of CTQ/ QAP
• Inspection Procedures/ Checklist
• Co-ordinate for Customer Audits
• Conducting Job Audit
• QRM, RCA, CAPA

Quality Control (QC)

QMS, WMS, Audits, MRMs ISO Certifications
QMS, WMS, Audits, MRMs
ISO Certifications

Control of QMS

ISO Manual & Procedures

Monitor Organizational Quality Objectives

Planning & Arranging Audits

Monitoring CAQs

Monitoring CARs

Management Review

Quality MIS

• Monitoring CARs • Management Review • Quality MIS Inspection, Documentation Interface with TPI/ Customer •

Inspection, Documentation Interface with TPI/ Customer

Inspection as per CTQ’s & ICL

PT/ MT/ Visual/ Dimensions

Self Verification/ Dimensions Formats

In-process documentation

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Raising & Validating NCR

Verification of Correction

Shop wise NCR analysis

Final documentation

16 May 2013

Larsen & Toubro Limited

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L&T Heavy Engineering

Key Processes
Key Processes
Quality Circles • 733 Teams in 14 Years of QC Journey • QC Tools Training
Quality Circles
• 733 Teams in 14 Years of QC Journey
• QC Tools Training
• Fortnightly Review
• Structured Evaluation & Recognition

Quality Circles & Six Sigma Projects

Participation: Workers/ Supervisors

Unnati at Hazira

Navneet Teams at Powai

• Unnati at Hazira • Navneet Teams at Powai  Rigorous NCR Analysis: RRCA • Major-Minor

Rigorous NCR Analysis: RRCA

Major-Minor

Severity & Frequency Analysis

Monthly QRMs

Customer Feedbacks, Top NCRs, RCA results

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Six monthly MRMs

Review: Quality Objectives

Audit Findings

16 May 2013

Larsen & Toubro Limited

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L&T Heavy Engineering

Key Processes
Key Processes
L&T Heavy Engineering Key Processes  Aligning Quality Objectives • Department Purpose Analysis • Functional
L&T Heavy Engineering Key Processes  Aligning Quality Objectives • Department Purpose Analysis • Functional

Aligning Quality Objectives

Department Purpose Analysis

Functional Measures Organisation Goals

Quality Planning:

“Critical To Quality” Identification at Project Start

QA Plan, Procedures & Check Lists

Awareness Programs for Workmen

In Local language

Intranet based CAQ System

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16 May 2013

Larsen & Toubro Limited

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L&T Heavy Engineering

Topics
Topics
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Larsen & Toubro Limited

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16 May 2013

L&T Heavy Engineering

Zero Repair Drive SGA
Zero Repair Drive SGA

Champion

Team Leader Team members

: S. R. Ramanujam (Production Center Head) : Ganesh Badgujar (Production & Maintenance) : Production: Jayesh Patel, Salim Mulani, Balkrishna Doke, Girish Sagare, Karan Kosambi, Welding Engg: Avinash Abnave, QC: John Pinto

• : Weld Joints in Gasifier Coils Item Object of Concern • : Manual Welding
• : Weld Joints in Gasifier Coils
Item
Object of
Concern
• : Manual Welding
Process
(Item, Process,
Area, Machine)
• : Mulund Shop (Contract
Shops
welders)
Effect
• High level of defects after
Radiographic &
(What is wrong)
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Ultrasonic Testing
Size
(Extent, Occurrences,
Frequency, Severity)
• 85 Repairs in 1612 Spots
in August 2009 (5.3%)
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L&T Heavy Engineering

Monitoring: Limited Results Monthly Spot wise repair % from Aug 2009 to Dec 2009. Sr.No
Monitoring: Limited Results
Monthly Spot wise repair % from Aug 2009 to Dec 2009.
Sr.No
Month/Year
Total No of RT Spots
Total No of Repairs
Repair %
1 Aug-09
1612
85
5.27
2 Sep-09
1286
57
4.43
3 Oct-09
1297
45
3.46
4 Nov-09
1656
57
3.44
5 Dec-09
2910
67
2.3
Monthly Repair % • Continuous Monitoring gave only Limited Results 6 5 • Decided to
Monthly Repair %
• Continuous Monitoring gave
only Limited Results
6
5
• Decided to Implement
Philip Crosby’ Philosophy
4
3
012 Larsen & Toubro Limited : All rights reserved
2
1
0
% RT Repair

16 May 2013

Aug/09

Sep/09

Oct/09

Nov/09

Dec/09

Larsen & Toubro Limited

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L&T Heavy Engineering Quality Management Maturity Grid III I II IV V Enlighten- Uncertainty Awakening

L&T Heavy Engineering

Quality Management Maturity Grid III I II IV V Enlighten- Uncertainty Awakening Wisdom Certainty ment
Quality Management Maturity Grid
III
I
II
IV
V
Enlighten-
Uncertainty
Awakening
Wisdom
Certainty
ment

Responsibility for Quality

Quality Function
Quality
Function

Problem

Solving

COPQ
COPQ

Quality

Improvement

What you hear ?
What you
hear ?

Quality

Valuable, But No resources

Management

Management

Department

Driven

Participation

Hidden

Support

Line

Business

Function

Function

Function

Fire

Short term

Methodical

Early Problem Identification

Fight

Focussed

Approach

Unknown Maybe >20%

Reported 3% Maybe >18%

Reported 8% Maybe >12%

Reported 6% Maybe >8%

   

012 Larsen & Toubro Limited : All rights reserved

 

No Formal

Measurement & Motivation

Fourteen Step Program

Continual

System

Improvement

Why do

Why do

We Identify & Resolve Problems

Defect Prevention is our motto

we GET

we HAVE

Problems?

Problems?

Everyone

Quality

Director

on Board

Preventive

Action

Reported 3% Really is 3%

Continual

Improvement

We do not have Quality Problems !

16 May 2013

Larsen & Toubro Limited

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L&T Heavy Engineering

14 Step Methodolgy
14 Step Methodolgy
1 2 3 Management Cross-Functional QI Team Measurement Commitment
1
2
3
Management
Cross-Functional
QI Team
Measurement
Commitment

Philosophy:

Full commitment & support from Top Management

ZERO is Possible and Will be achieved

No Shortcuts to Quality

No “Quick fixes”

• No Shortcuts to Quality • No “Quick fixes” Cross Functional Approach: • All are responsible

Cross Functional Approach:• No Shortcuts to Quality • No “Quick fixes” • All are responsible for welding defects

All are responsible for welding defects

012 Larsen & Toubro Limited : All rights reserved

and not the welding engineer or Quality Engineer

Participation of all employees is a MUST

Measurement of Problem & Status of ImprovementEngineer • Participation of all employees is a MUST • Track and Monitor each Weld on

Track and Monitor each Weld on daily basis

16 May 2013

Larsen & Toubro Limited

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L&T Heavy Engineering

14 Step Methodolgy
14 Step Methodolgy
4 5 6 Cost of Quality Evaluation Quality Awareness Habit: Identify & Correct
4
5
6
Cost of Quality
Evaluation
Quality
Awareness
Habit: Identify
& Correct

Cost of Poor Quality

Production Loss (Hours), Delay Penalty

of Poor Quality • Production Loss (Hours), Delay Penalty Awareness • Supervisors : Impact of Poor
of Poor Quality • Production Loss (Hours), Delay Penalty Awareness • Supervisors : Impact of Poor

Awareness

Supervisors : Impact of Poor Quality on Profitability

: Loss of earnings (Payment based on “CLEARED” Welds)

Welders

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Habit

Daily Feedback is a must (Before, During & After Welding)

Elimination of all possible reasons before welding

Mantra: Knowledge & Attention

16 May 2013

Larsen & Toubro Limited

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L&T Heavy Engineering

14 Step Methodolgy
14 Step Methodolgy

7

Zero

Defect

Task-force

Action Plan

1. Analysis

2. Interaction

3. Training

4. Checklist

5. Recording

8 9 Supervisor Trg: Zero Understanding Defects Problems Day
8
9
Supervisor Trg:
Zero
Understanding
Defects
Problems
Day

10

Goal

Setting

Plan Do Chk
Plan
Do
Chk

: Past data Collection & Monthly Repair Brain storming session with workmen:

100+ Conditions resulting in repairs identified

Act
Act

: With welder, contractor, supervisor every month

: Weekly sessions conducted by zero Repair Team.

: Standard Preparations for repair prevention

: By every welder: Pocket DiaryDetails of seam welded

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(Date, shift , Seam no, Process, Thk, Material & status)

6. Feedback

7. Solve

: Weekly problem sharing sessions

: All Problems/ Difficulties highlighted by Welders

sessions : All Problems/ Difficulties highlighted by Welders Zero Defect Policy Announced 16 May 2013 Larsen

Zero Defect Policy Announced

16 May 2013

Larsen & Toubro Limited

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L&T Heavy Engineering

14 Step Methodolgy
14 Step Methodolgy

11

Act on Problems told by Workers

13 12 Quality Recognition Council
13
12
Quality
Recognition
Council

14

Do it again!

Actions Taken (based on feedback from Welders):

Electrode brand changed

Ban mobile usage during working hours

Eye check-up for all workmen (welders, grinders, fitters & supervisors)

Monthly appreciation of welders who have produced zero defects.

‘Target Zero Repair’ – message beside every seam

Depth chart (more than 30thk) for Accountability

End-to-end Task completion by one welder

Daily RT / UT status update at Production Center Head’s Cabin

Display Boards, Pocket cards: Quality instructions

Frequent spot check by Shop supervisor

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Larsen & Toubro Limited

Shop supervisor 012 Larsen & Toubro Limited : All rights reserved 16 May 2013 Larsen &

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L&T Heavy Engineering

Weekly Training Sessions: All Welders
Weekly Training Sessions: All Welders
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012 Larsen & Toubro Limited : All rights reserved

16 May 2013

Larsen & Toubro Limited

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L&T Heavy Engineering

Active Interactions Appreciation: Zero Defect Welders 012 Larsen & Toubro Limited : All rights reserved
Active Interactions
Appreciation:
Zero Defect
Welders
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Eye Check-up Camp
16 May 2013
Larsen & Toubro Limited
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L&T Heavy Engineering

Result
Result
 

Statement of Cost Saving due to improved process of RT/UT

 

Period

Total

Spots RT

Total Repair

Spots (Nos)

Repair

Spot %

Reduction in Repair %

Red in no. of defects (Nos)

Cost per

defect in

Cost Saving in Lacs Rs

(Nos)

Rs

Aug 08 to July 09

25755

1091

4.2%

 

<< Reference Point >>

 

FY 10-11

24469

330

1.3%

2.9%

707

6,582

46,50,005

FY 11-12

19925

107

0.5%

3.7%

737

6,976

51,41,877

Cost per defect calculated based on “Through-put per hour” saved

 
012 Larsen & Toubro Limited : All rights reserved
012 Larsen & Toubro Limited : All rights reserved

012 Larsen & Toubro Limited : All rights reserved

 

= ZERO Defects

16 May 2013

Larsen & Toubro Limited

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L&T Heavy Engineering

Summary
Summary
Plan Act Do Don’t be afraid of the dark ! Chk Observation System Don’t tolerate
Plan
Act
Do
Don’t be afraid of the dark !
Chk
Observation
System
Don’t tolerate Non-sense !

012 Larsen & Toubro Limited : All rights reserved

Pride in your Work !
Pride in your Work !
Larsen & Toubro Limited : All rights reserved Pride in your Work ! 16 May 2013

16 May 2013

Larsen & Toubro Limited

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L&T Heavy Engineering Strategic System Complex L&T Talegaon 16 May 2013 012 Larsen & Toubro

L&T Heavy Engineering

Strategic System Complex L&T Talegaon
Strategic System Complex
L&T Talegaon

16 May 2013

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Thank you

Larsen & Toubro Limited

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