Policy Deployment (PD)

of
Pondy Hex plant

(Form - 1 & Form - 2)

 Pondy Hex Plant Organization Structure
Plant Head Pondy Hex
DH - TQM Plant Head - WEF Plant Head - HWF Corp HR DH - Finance

SH - TQM

SH -HR
SH - Finance
Safety U & SM

SH-Production, SH Production(Process) SH -Planning SH - HR

(Forging), Tools, Design WED & SWH Quality Information
USI Accounts in-
charge systems

USI - 3 Executives 5
executives Nos.
Production Tools in- Design in-
in-charge charge charge

Engineering

Exe - 3 Cell
leader
OEM & Exp. Retail sales PPC Sub-contract
sales

Exe - 4 Tools Purchase

Engr

HT in-charge WED Phosphating

in-charge in-charge QMS & CCF METLAB VQ Final Quality Mfg.Quality Calibration
In-charge In-charge in-charge in-charge in- in-
charge charge
Exe- 4 Exe - 4
HT - Planner Exe -4 Elec Maint Exe - 2 Exe-1 Exe -2
incharge
President's Policy 2014-15 Issue No. 1 , 05.06.2014
(FORM 1)
Sl Target Last PD Ref
Policy MOP Major Measures Target Deployed to Pondy
No. 2014-15 Year No.
Increase Export sales
- Existing customer New product
1.1 $ 20 Mn Div Mktg Head
- New customer New product
- Regain lost customers

1.2 Ensure adherence to MFM plan 100% Unit Heads

Sales Turnover 760 672

Rs in Crores 1.3 Improve SOB in Domestic OEM sales 5% Div Head Mktg

Increase Retail sales thro coverage of

1.4 Tier 2, 3 cities and Product portfolio 12% Div Head Mktg
expansion

Re-aligning Supply chain - RM 4800 MT and / or Div Head Mtls

1.5 Suppliers' capacity enhancement As per MFM req

Achieve reliasation per MT by

Achieve Profitable 1.6 143709 Div Head Mktg
1 maintaining sales mix (in Rs )
Growth
1.7 Improve operating contribution 27.80% Unit Heads

Padi Hex -54842

Maintain RM procurement cost per KPM -50756
1.7A Div Head Mtls
MT HNF- 52639
Pondy Hex-52107
PBT in % 9.20% 5%
1.7B Maintain other than RM cost to sales 27.50% Unit Heads

1.8 Get price increase from customer 1.5% of sales Div Head Mktg

1.9 Reduce Employee cost to sales 6.90% Unit Heads

Div Head
1.10 Reduce other Fixed cost to sales 11.70% Finance
President's Policy 2014-15 Issue No. 1 , 05.06.2014
(FORM 1)
Sl Target Last PD Ref
Policy MOP Major Measures Target Deployed to Pondy
No. 2014-15 Year No.

Ensure development of new products

2.1 400 parts Div Head D&D
as per time line
Revenue from New
product (products
developed in
preceeding 3 years)
2 a. Current product % of turnover 10% 8% Productionise parts for serial
2.2 400 parts Unit Heads
range production as per time line
b. Aerospace
fasteners
c. Non auto business

2.3 Generate RFQ for new business 400 parts Div Head Mktg

Reduce customer complaints Div Head QA &

3.1 45
(50% reduction from last year) Unit Heads

3.2 Customer PPM (divisional level) < 25 PPM Div Head QA

Enhance Customer CSI - customer Delivery performance

3 3.3 100% Div Head Mktg
satisfaction satifaction index (mktg to customer)

Improve Delivery perfomance

3.4 80% Unit Heads
(service level as per SAP)
PG3- 10wks
Improve Development performance -
3.5 1. Lead time reduction Div Head D&D
100%
2. Customer shedule adherance
Participation % in 4.10 Achieve TEI participation at Unit level 100% Unit Heads
TEI

Employee To Implement Employee Satisfaction

4 Employee morale - - 4.20 oct 14 ? Div Head HR
satisfation index survey

Attrition rate FD fig to

<10% 4.30 Implementaiton of identified actions As per plan Div Head HR
(Mgmt staff) be put
President's Policy 2014-15 Issue No. 1 , 05.06.2014
(FORM 1)
Sl Target Last PD Ref
Policy MOP Major Measures Target Deployed to Pondy
No. 2014-15 Year No.
Gold
Green Co rating 1 5.10 Obtain Green co rating for the Plant 100% Unit Heads
Ensure corporate (all units)
governance
a. Green initiative at Contribution in % 5.20 Implement CSR projects as per plan Unit Heads
5 turnover
all Units
b. CSR initiatives at
all Units Ensure factory act & statuatory
Notices received 5.30 100% Unit Heads
requirements

Proto produciton Formed parts - CFT - Mktg,

and submission to Mar'15 - 6.1 Decide on Investment and As per time line D&D, R&D
customer development of proto parts

Farm Implements -
Entry into adjacent Project report and Jan'15 CFT - Mktg,
- 6.2 Carryout survey, Identify customers, As per time line
business Business case D&D, R&D
prepare business case
a. Formed parts
b. Farm implements
6 c. SS speciality
fasteners Proto production Work on retail business, market
d. Aggregates & CFT - Mktg,
and sensitise retail Mar'15 - 6.3 survey, costing work out for selected As per time line
Assemblies D&D, R&D
market products

Project report and Jan'15 CFT - Mktg,

- 6.4 Contact customer and identify parts As per time line
Business case D&D, R&D

Implement QCC, QIT projects as per

TQM score 7.1 100% Unit Heads
plan
Implement TQM
7 practices
7.2 Implement actions as per Master plan 100% Div TQM

New processes
Enhance R&D 2 process Implement projects identified as per
8 and Materials - 8.1 100% GM - R&D
capability in FD 1 mtl time line
developed
KPM Padi
Policy Deployment Matrix for 2014-15 (FORM 2) 16:45 pm
Unit Head - Pondy Hex plant Issue: 1; date: 16.06.2014
FD
Sl PD Target Last
Managing Point Target1 PD ref Major Measures Checking Point Target Deployed to
No. Ref 2014-15 year
4-15

Ensure adherence to Ensure RM avaliablity by

1 1.2 100% 100% 95% 1.2.1 maintaining 3 days stock of Zero Hex PPC Head
MFM plan moving items
Line stoppage due to RM short

Improve production plan

1.2.2 adherence in Forging by
eliminating short closures due 100% Hex Mfg 1 Head
to tools Production plan adherence -
Forging

Sustain in Process 100% Hex Mfg 2 Head

Production plan adherence - HT & Pho

Sustain in S/c parts 100% Subcontract

S/c part reciept plan adherence Head

Reduce RM cost as a ratio of 1. RM procurement mix adherence 100% Hex Head USI
2 1.7 Improve Operating 27.80% 28.30% 27.3% dispatch ( Rs. / MT) by ensuring 2. RM Yield 90.5% Hex Mfg 1 Head
Contribution procurement mix & RM yield 3. Internal rejection - Forging 0.7% Hex Mfg 1 Head
4. Internal rejection - Process 0.2% Hex Mfg 2 Head

Reduce other variable cost as a

ratio of dispatch ( Rs./ MT) Sub contract 7338 Head PPC
by outsourced to in-house

Optimisations of Furnace Power cost 5996 Hex Mfg2 Head

output ( 970 to 920 Units / MT)

Tool material reclamation Tools cost (Rs /MT) 3600 Hex Mfg1 Head

Head count Bought-out service (Rs /MT) 2948 Hex Mfg2 Head
Pondy HR Head

Life improvement of specified Spares cost (Rs /MT) 1739 Hex Mfg2 Head
spares

Sustain head count for the

3 1.9 Reduce Employee 6.9% 5.6% 5.9% increased sales by improve Tonnage per Employee 129 Hex Mfg Heads
cost to sales productivity improvement (annualised)

Productionise parts 400 103

4 2.2 for serial production parts 100 parts parts Ensure NPD review as per plan NPD review schedule adhrence 100% Hex Mfg 1 Head
as per time line
Reduce customer
complaints Eliminate wrong despatch Parts with pre-fixed locations
5 3.1 45 9 19 complaint by pre-fix loc., and 100% Hex QA Head
(50% reduction from bar coding system and bar code system
last year)

Reduce dimensional First time right in FQA

complaints by increasing (OE & Export) 100% Hex QA Head
inprocess controls

Improve Delivery
perfomance Improve service level in OEM
6 3.4 80% 80% 72% segment by better scheduling OEM service level 80% Hex PPC Head
(service level as per
SAP) of long lead item

Achieve TEI Convert Non / Low

100% 100% 82% contributors by periodic No. of non contributors converted Nos Hex HR Head
participation counselling
7 4.10

Suggestions per - 7/M/E 7/M/E Maintain suggestion Suggestions pending beyond target Zero Hex Mfg Heads
Employee implementaiton rate date for implementation

To understand requirements
and execute improvement
Green co rating for 100% as >750 projects in the areas of
8 5.1 the Plant per points (in - 1. Energy conservation No of improvement projects Nos to be Pondy Safety
(preparation for next guide internal 2. Hazardous waste reduction executed arrived Officer
year) lines audit)
3. Material consumption
reduction

9 5.2 CSR projects 100% 5 5 Prepare calendar and adhere Schedule adherence 100% Pondy HR Head

Compliance to Sustain compliance to schedule Schedule adherence to Vital Activity Pondy HR Head
10 5.30 statutory requirements 0 0 0 100%
- Notices received of submission Monitoring chart (VAM) Pondy Fin Head

11 7.1 QCC, QIT projects Nos 11 2 Training of members and Members trained in QC methods Nos TQM
periodic review of QCCs coordinator

Review conducted Nos Hex Mfg Heads

Safety - Major Eliminate minor & near misses

12 0 0 0 and ensure actions on safety Minor & Near miss Zero Pondy HR Head
accidents audit findings

Safety audit pending points Zero Respective Section

Heads