Design and implementation of cellular manufacturing system at Triveni engineering industries ltd., Bangalore.

Abstract

TEIL, is a multi-product, Multi location Company with diversified product range. Turbine business group at Bangalore, is having more than 30 years of experience in the engineering, manufacturing, supply and installation of steam Turbine Generator sets. Around 200 turbines per year, in range of 20 kw to 1200 kw, are manufactured by plant for different industries like Sugar, petro-chemical, fertilizer, paper, cement, etc. Till 90's Triveni virtually used to enjoy monopoly in the market by controlling more than67% of the market of up to 3.5 MW capacity. There was mainly one local competitor in the market. However, the scenario changed from 90-91 onwards. Number of manufacturers entered the market by joining hands with well known companies like ABB, Rolls-Royce, GEC, skinner etc., Liberalization and reduction in custom duty made companies from Japan, Europe and USA, interested in exploiting the Indian market. The result, prices came down by 30 to 35%. Deliveries and quality also became one of the important criteria for order winning. The principle "cost + profit = selling cost" suddenly vanished. Market started deciding the selling prices, deliveries with high focus on service. Profits started shrinking. Addition to this is recession in the industry hitting the capital equipment market like turbines. Organisation has to put them in a continuous learning mode in order to survive in the business. It is well learnt now that procedure and system determine the key parameters of competition such as lead-time (delivery reliability), cost, quality, and flexibility(responsiveness). All these requirements call for newer systems and procedure in manufacturing organisations. Existing condition of the unit is not in line with the need of the day. WIP and inventory are increasing, utilization of machines looks under control but deliveries are not met on time, cost of manufacturing increases year by year, sob-contract increases much more than planned etc. Two techniques are utilized in manufacturing. One is the production technique and other is manufacturing technique. Production technique means the technique needed to produce goods. In contrast, manufacturing techniques means the techniques of utilizing equipment, personnel, material and parts, efficiently.