RELIABILITY

MANAGEMENT AT
Asian Paints - Introduction
 India's largest paint company
 Ranked among the top ten Decorative coatings
companies in the world 
 Turnover of INR 66 . 80 billion
 Operations in 17 countries across the world
with 23 paint manufacturing facilities
 Service consumers in 65 countries  through
Berger International, SCIB Paints – Egypt, Asian
Paints, Apco Coatings and Taubmans.
Reliability Management at
AP
 “Reliability is one of the solid pillars
on which SCM rests upon & functions
effectively ” Vikram Jaisinghani, GM-
Manufacturing
 Divides whole Supply chain into
◦ Aids / Enablers
◦ Drivers
 Aids : Encompass all software tools such as
planners, B2B solutions, schedulers etc.


Reliability at AP
 Drivers : Ground realities -> can be show-stoppers
if not handled properly & taken care
immediately(this is Reliability is all about) -> ‘ R ’
factor


 Five pillars of Reliability

◦ Quality
◦ Environment
◦ Safety
◦ People
◦ Materials
◦
 PILLAR ONE : Quality Movement at
Asian Paints
Six Sigma

Zero Deviations

ØMillennium Quality Policy Announced

ØAll Plants certified under ISO 9001: 2000 Standards
ØImprovements made in Quality Systems
ØNewØISO 9001:
Areas like 1994
ESF, Systems
Dealer Tinting Systems, 5S brought under the purview of ISO 9001
ØConsolidation of Systems
ØImproving Quality A

1995 2000 2003

Quality Movements through the years
Pillar one : In Nineties
 Early nineties : Quality was inspection
 1992 : APIL decided to work on ISO 9001-1987
 1995 : Mumbai plant certified ISO 9001-1994 (First
Indian paint industry)
 1995 - 1997 : Patancheru & Ankelshwar certified
ISO 9001- 1994 std
 1995 - 1999: Consolidation of quality system
 Approval with deviations (AWD’s) & rejections



Pillar one : In Early 2000
 2000 : Millennium Quality Policy (Intent to
do things right the first time & Philips
Crosby std of Zero defects)
 New Areas like ESF, Dealer Tinting Systems, 5S
brought under the purview of ISO 9001
 Quality :- Process point of view than function
 20 key customer - impacting process: New
product introduction, customer feedback process,
design & development process, std process
Pillar one : Post 2000
 Post 2000 - Zero deviation target and avoid
recurrence (but deviations were still
plummeting)
 Shifted its focus to reworks
 Started training its employees in 6 Sigma
(under banner of Root Cause Analysis
( RCA )) – 1st in manufacturing function ->
Supply chain & technical functions



Pillar one : Six Sigma
 GM- Manufacturing (Six sigma black & quality
engineer ( by ASQ))
 Factory managers – Six Sigma Green belt
(reviews 6σ projects)
 Train entire staff in 6σ green belt + 6 black
belts
 6σ training was mandatory & they should deliver
at least one successful project in
financial year -> linked to performance
feedback & measurement system


Pillar one : Six Sigma ( cont ..)
 Focus on problem-selection criteria (linked to
business goals) - > Project charter
 Team leader: calculates the cost of poor quality &
difference between entitlement & ‘ As Is ’ of
process
 List of themes released by GM: (Critical business
requirements)
◦ Cost
◦ Waste Minimization
◦ Cycle time
◦ Quality
◦ Standardization
◦

Pillar one : Six Sigma ( cont ..)
 Factory Manager (Over all Champion)


 Project Guide/ Project champion (Black belt)



 Team Leader (Green belt)



 Team members (Actual doers)



 Project Guide-> reviews the progress, gives inputs

to the team on proper statistical tool selection, data
collection & analysis of the results (ensures
rigorous application of DMAIC methodology)
 Project champion -> supports & ensures ownership of
all implements (resource constraints, coordinates
interdepartmental issues, implement improvements)



Pillar one : Six Sigma ( cont ..)
 Team Leader -> ensures timelines are met, DMAIC methodology
is applied with adequate rigor & discipline
 Administration manager -> Cost - related projects are signed off
 Factory Manager -> Supports entire initiative & decides how
the RCA initiative is deployed in plant
 All improvements -> locked in financial budget or procedures of
quality system (current & future years)
 Shared with rest of the organization in the best practice meet
 2002-03-> Manufacturing function completed 102 projects
 APIL has increased the reach of 6σ from supply chain &
technology to rest of organization


Six sigma at Wipro Technologies
 Some of the key challenges involved were:
◦ Reduce the data transfer time
◦ Reduce the risk
◦ Avoid interruption due to LAN/WAN downtime.
◦ Parallel availability of the switch for the other
administrative tasks during the same period..
 Six Sigma at Wipro simply means a measure of quality
that strives for near perfection
 1997-98 to 2006-07
◦ Black belts -> 13 to 180
◦ Projects -> 80 to 1500
◦ Saving -> 48 to 1800 (Million Rs)

PILLAR TWO : Environment at Asian
Paints
 The three dimensions of environment:



Material

Clean Environment
Productivity

Natural
Resource
Conservatio
n
 Basic elements of
Environmental Management
System
Reduction at Source
 Measures taken:
 MBA
 Daily monitoring system of all types of waste
generation at each source
 Segregation of waste into hazardous and non-
hazardous material and giving the required
treatment, Implementation of waste segregation
system.
  Optimizing batch cycles and streamlining
production scheduler
 Design of environment friendly ingredients-

based formulations
 Good manufacturing practices implemented at

the shop floor along with mass awareness

building, targeting reduction of waste at
source

Reduction in waste
Reduction in packing material
losses
Reuse and Recycle
 Conserves natural resources
 Avoids waste treatment and disposal
 Reduces the need for addition of fresh raw
materials to the process
 Initiatives taken:

 Reduction in ash disposal

Reduction in water solvent

disposal
Reduction in specific effluent
discharge
End - of - the - pipe treatment
 To achieve ‘Zero effluent disposal’:
üImproved effluent treatment facilities
üStringent monitoring of input and output
parameters
 Reduced discharge from plants due to:
üInstallation of block level collection pits to
monitor the hydraulic and organic load
üInstitution of equalization tank pre-formulating
scheme to ensure threshold organic content at
ETP inlet, etc.

Natural Resource
Conservation
Precious natural resources
Water
for paint industry

Power


Fuel
Water
üMapping of water distribution network
üIdentifying water consumption reduction
opportunities
üDaily water reconciliation system across the
plant
 Power and fuel
üReduced process losses by initiatives such as
overall asset effectiveness, first pass yield,
etc.
üReduced power consumption due to
 Conversion of generator sets from HSD-based to
LDO-based
 Modifications to power intensive areas like ETP,
incinerator cold storage areas
Ongoing Environmental
Initiatives : paint plants and
vThe company's four the two
chemical plants have the ISO 14001
certification for environment management
standards.
vAsian Paints has built a Total Water Management
(TWM) Centre, at its Bhandup manufacturing
facility, which is the first of its kind in the
entire country.
vPaint plants -'zero industrial discharge'
capability, emulsion manufacturing
facility-'zero waste' status, principle of
"green productivity".
 PILLAR THREE : Safety at Asian

Paints
Asian paints operations falls under the ‘Hazardous
process’ industry as per Factory act 1948
 APIL believes that positive safety culture are
characterized by communication founded on
◦ Mutual trust
◦ Shared perceptions of importance of safety
◦ Confidence in efficiency of preventive measures
 Safety is placed at the motivational center of the
organization
 Operational effectiveness of manufacturing facility
is enhanced -> Shop floor is safe to work at -> there by
frontline people to channelize their energies on
process, equipment health

◦
 Pillar Three : Safety ( contd ..)
 1999: Study to gauge the health of safety
systems
 The concept of “Migration to World Class
Standards”
 Aim : Improve existing safety systems, technical up
gradations to improve safety
 2002 : All 4 manufacturing units started adopting
‘British Safety Council standards ’
 First Phase: Systematic approach of preparing the a
safety manual as per BSC requirements
 Next: Detailed gap analysis with reference to
existing system
 Pillar Three : Safety structure
of AP
General Manger (Manufacturing)

Factory

Safety Representatives

Safety Officers
Safety Executives
Personal Manager
Production Manager
Plant Engg Manager
Other Manager

Internal Trained safety Auditors

Safety Coorinators

Fire fighting squad First Aid squad Departmental Safety commitee

t safety committee Members
All employees
Pillar Three : Safety structure
of AP
 Production Manager -> stand by for Factory
Mgr
 All safety reps -> nominate their 2nd in
charge (& mentioned in display board)
 Photographs of all starting from GM to
safety reps to be put along with name

 Pillar Three : Safety ( contd ..)
 2002-2003: Inter-plant competition
 AP
◦ worked on guidelines of BSC
◦ Focus upon taking preventive measures
◦ Make operations mistake proof
◦
 Benefits reaped : Reduction in the number of
reportable accidents
 4 plants is conferred with the 'Sword of Honor ' by
the British Safety Council for the second time,
considered the pinnacle of achievement in safety
across the world.
Safety & Health policy in Toyota
Ø Develop and implement occupational health and safety management
system to comply with TIS 18001  certified from the management
system certification institute (MASCI) since 2001 and
was OHSAS 18001  certified since 2004
Ø
Ø Implement preventive and corrective action to prevent hazard from
machinery, equipment, fire, chemical, and all moderate risks or
higher level including control all risk by setting up annual
occupational health and safety objective and target and
communicate to all relevant persons to perform for continual
improvement.
Ø
Ø Support suitable and sufficient resources including manpower,
time, budget and training program.
Ø
Ø Stress to all employees, contractors, and others working in its
behalf their responsibility and accountability for safe
performance on the job and encourage safe behavior off the job.
Ø
Ø Undertake appropriate reviews and evaluations of its operations
to measure progress and to ensure compliance with this safety
policy.
PILLAR FOUR : Human Resources at
Asian Paints
 Change Initiatives:
 Introduction of state-of-the-art technology,
automation in core operations as well as in
storage, EHS facilities aiming at reliable, safer
and high-quality outputs
 Introduction of cultural initiatives such as 5S, TPM,
RCA aiming at improving effectiveness of operations
 Redefining existing performance parameters –goal for
quality redefined as ‘zero defect’ with ‘right first
time’ and ‘continuous improvements’ as underlying
philosophy.

 Shift from ‘volume-driven’ organization to one in
which changes are implemented with reliable
delivery of volumes
 Creating a more participative work environment
 Roles redefined, employees at lower levels empowered
 Performance management system modified-rewards linked
to deliverables on the changed expectations
Initiatives :
 Workmen:
ØProductivity-based model-Activities measured,
quantified and converted into norms/outputs-
wages paid to workmen as per performance
against these standard outputs
ØAssumptions of this model challenged by new
philosophy

ØCultural Interventions and settlements:
üRole of workmen modified to address restrictive
practices, improve asset effectiveness and
reward RFT behavior
üWorkmen encouraged to participate in change
initiatives
üSuitable reward mechanisms to recognize
contribution
üEmpowered to take higher roles such as
coordination of change initiatives
üDeterrents to combat inefficiency and absenteeism
that affected reliability of operations
 Staff:
ØSources of staff recruitment examined
ØRoles of employees redefined, jobs enriched by
giving higher order roles to staff
ØTraining programmes, awareness sessions held
ØCFT formed to implement change initiatives
ØPerformance management systems and reward
mechanisms modified suitably
ØCommunication channels revamped
ØInterplant competitions held



Conclusion
 Reliability is the heart and soul of
supply chain
 ‘R’ factor forms the core of supply chain
–has to be taken care of before
implementing enablers.
 Advantages- Straight savings, a serious
contribution to the bottom line.


 THANK YOU!!!

 Team 3:


 Jebsy Alexander MBA09018

 Nithya.G MBA09027
 Poornima.V MBA09032
 Sreekanth Sasidharan MBA09047
