L.G. PRODUCTION MGT PPT

INTRODUCTION The company was originally established in 1958 as

Goldstar, producing radios, TVs, refrigerators, washing machines, and air conditioners.

The L.G group was a merger of two Korean companies Lucky and Goldstar.

Is the second largest producer of television and third largest producer of mobile phones.

L.G. INDIA LG Electronics India Pvt. Ltd., a wholly owned

subsidiary of LG Electronics, South Korea was established in January, 1997 after clearance from the Foreign Investment Promotion Board (FIPB).

LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500 Crores

In 2004, LGEIL also up its second Greenfield manufacturing unit in Pune, Maharashtra

LG plans to set up Rs 500-cr unit in South

BUISINESS DIVISIONSL.G. GROUP

L.G. ELECTRONICS

MOBILE COMMUNICATIONS

DIGITAL DISPLAY

DIGITAL MEDIA

DIGITAL APPLIANCES

L.G.CHEM

INFORMATION AND ELECTRONIC MATERIALS

CHEMICAL AND POLYMERS

LG SOLAR ENERGY

INDUSTRIAL MATERIALS

L.G.TELECOM

MARKET SEGMENTATION Demographic

- Income- -Occupation° Geographic

-Tier 1 cities

- Tier 2 citieso Psychographic

-Life style

-Personalityo Behavioural

-Value

-Benifit

S.W.O.T. ANALYSIS Strengths:- Market leader in home appliances.

Has got manufacturing unit in tax incentive .

Wide range of products to serve all categories.

Widest distribution network in the industry(47 barnches,10000 trade partners).

Good after sales service offered.

ANNUAL PRODUCTION GRAPH

ANNUAL PRODUCTION GRAPH

WEAKNESSES. Samsung being its competitor provides similar

products.

Consumers compare L.G with Samsung its Korean rival not with other global companies.

Lack of expert operators for complex machines due to illiteracy and lack of training in India.

Fast growth of the home appliances market

Shifting to rural areas

Thus maintaining control over the market and the highest share in home appliances market

OPPORTUNITIES

THREATS Close competitors like Samsung are compared to it.

Price war with Samsung.

Competition from Indian brand and other foreign brands.

MAJOR LANDMARKS OF L.G. INDIA. Feb’97 : Established LGEIL May’97 : Launched CTV, WM, REF. Jan’98 : Launched AC Apr’98 : Inaugurated Noida Plant-CTV, AC, WM May’01: Started Monitor Prod. … Jan’04 : Started PC Production Oct’04 : Inaugurated Pune Plant-CTV, REF Apr’05 : Started GSM Production (P) Jan’07 : Started TFT Monitor production Apr’07 : 5 Star Energy Rating for products

GROWTH PLANNING Growth strategy “fast innovation fast growth” The new plant which is under development aims to

reach a manpower base of 1500 people and an investment of Rs 300 crore till 2010.

o Growth strategies aimed at gaining more customers from the 1.1 billion prospective customers of India.

o Currently India is equipped with a production line to manufacture 6 lakh T.V sets and 1 million refriegerators per year.

COST-CUTTING CASE STUDIES

P.O.M. decisions

ENERGY CONSUMTION PROCESS

ENERGYELECTRICITYRUNNING OF ALL UTILITY EQUIPMENT

RUNNING OF PRODUCTION EQUPMENT

GENERAL LIGHTING

FUELFOR PRODUCING ELECTRICITY THROUGH D.G.

FOR HEATING AND PAINT SHOP BURNER

FOR HOT WATER GENERATION

COMPRESSED AIRFOR DRYING OPERATIONS

FOR BLOWING OPERATIONS

FOR COOLING OPERATIONS

FOR RUNNIG OF TOOLS AND EQUIPMENT

WATER

SHELL WASHING MACHINE

Before Status :To dry the Components in Shell

washing machine earlier 60 KW Electrical heater were

used .Running Cost / Day:Appx Rs 4,000

Running Cost/Month: Appx. Rs 1,04,000

After Status:Two Propane fired Burner Has been Installed to Serve

the same Purpose

Running Cost/Day: Appx. Rs.1,675

Investment :Appx. Rs. 6,00,000

Running Cost / Month:Appx. Rs. 43,550

Savings / Month:Appx. Rs.60,450

PICKLING MACHINE

Before Status :To dry the Components in Shell washing

machine earlier 70 KW Electrical heater were used .

Running Cost / Day:Appx Rs 4,620

Running Cost/Month: Appx. Rs 1,20,120

After Status:Two Propane fired Burner Has been Installed to Serve

the same Purpose

Running Cost/Day: Appx. Rs.1,800

Investment :Appx. Rs. 6,00,000

Running Cost / Month:Appx. Rs. 46,800

Savings / Month:Appx. Rs.75,000

PAINT SHOP BURNER CHANGEOVER

Before Status :To dry the Components in Paint Shop oven Diesel Fired Burner was Used .

Running Cost / Day:Appx Rs 44,640

Running Cost/Month: Appx. Rs 1,249,920

After Status:Two Propane fired Burner Has been Installed to Serve the same

Purpose

Running Cost/Day: Appx. Rs.31,250

Investment :Appx. Rs. 1,000,000

Running Cost / Month:Appx. Rs. 875,000

Savings / Month:Appx. Rs.375,000

INSTALLATION OF BLOWER ON PICKLING MACHINE

Before Status : Earlier Compressed Air were UsedTo dry

the Components in Pickling Machine.

Running Cost / Day:Appx Rs 2,000

Running Cost/Month: Appx. Rs 52,000

After Status:Now One Blower of 10 KW is Installed to serve the same purpose.

Running Cost/Day: Appx. Rs.655

Investment :Appx. Rs. 200,000

Running Cost / Month:Appx. Rs. 17,000

Savings / Month:Appx. Rs.35,000

CASE FOAMING PRE HEATING CHAMBER

Before Status : To Pre Heat the Case of Ref. Earlier 100

KW heater were used.

Running Cost / Day:Appx Rs 6,000

Running Cost/Month: Appx. Rs 156,000

After Status:Now Propane fired Burner is doing the same Job.

Running Cost/Day: Appx. Rs.2150

Investment :Appx. Rs. 650,000

Running Cost / Month:Appx. Rs. 55,000

Savings / Month:Appx. Rs.100,000

Before Status : To Achieve the Humidity in Part Reliability

Building we were using 18 KW Heater

Running Cost / Day:Appx Rs 2,590

Running Cost/Month: Appx. Rs 77,760

After Status:Now we provided high speed Atomizer to serve the same

purpose with only

0.4 KW motor

Running Cost/Day: Appx. Rs.57

Investment :Appx. Rs. 45,000

Running Cost / Month:Appx. Rs. 1720

Savings / Month:Appx. Rs.75,000

Part Reliability Testing of Sync.Motor, Louver,Cam

& Link done with product . 2 Nos Product run

continuously for 15 days for testing of one

lotPower Saving , Less Space Required .No of

Samples

can be increased from 2 to 5

Test Jig made in which Parts Can be Tested separately from the product with same assy condition .

After Benefits

Test Condition : Assemble the cam ,Link with Machines for 15 Days Continuous Running

Innovation : Test the Cam , Link & Syn Motor with Test Jig with same Load(160Gf)

•Machine Run Time -15days

•Total Unit per days = 2x2x24 = 96units

•Total Cost ( per Unit ) = Rs 6

•Savings per Month = 15x96x6x2 = Rs 17280

•avings for one year = 8640x12 = Rs 2,07,360

ENERGY SAVER FOR LIGHTING LOAD

Energy Saver installed in Sub station-4 on 7thOct 2007 Energy Saver installed in Sub station-1 on 21stOct 2007 Energy Saver installed in Sub station-2 on 10thNov 2007

INNOVATION IDEA Extensive usage of Transvector

Nozzlesat C-Block washing, Pickling ,Part Washing and Shell Washing Machine

Replace compressed air system by Electrically Driven Blowers for homogenization Of Chemical in Degreasing

Installation of pressure boosters for local need.

MHL REPLACEMENT WITH T5 ENERGY EFFICIENT LIGHTSS.N PARAMETER T5 LAMP BASED

SYSTEMSREMARKS

1 Lumen Efficacy (Lumen / Watt Output)

104 Lumen per Wat WattThis means , T5 lamps consume less power for same light output2Life

2 Life of the Lamp 18,000 burning hours i.e 750 DaysT5

DaysT5 Lamps have longer life , hence less expenditure in maintenance3Operating

3 Operating Voltage Range

130-280 VoltsT5

4 Line Current Reduced to 1/3rd approximatelyDue

5 Power Factor 0.90 & above

TECHNIQUES USED

Before Status :To Cool Rotor from 3000C to 900C there are 16 open pipes of Compressed Air and one

number of 18 KW A.C. is being used for cooling.Running Cost /

Day:Appx Rs 2,990

Running Cost/Month: Appx. Rs 77,740

After Status:Three Cooling Nozzles Has been installed which are

Serving the Same Purpose ,by this nozzle we will get the Temp. of -50C.

Running Cost/Day: Appx. Rs.120

Investment :Appx. Rs. 60,000

Running Cost / Month:Appx. Rs. 3120

Savings / Month:Appx. Rs.75,000

DEGREASING MACHINE

Before Status:The chemical mixture was being agitated by using

compressed air at 7 Kg/cm2. This way the chemical would get homoginised.

Running Cost / Day:Appx Rs 3000 Rs

(10 Hrs x cost of air)

Degreasing Machine

Running Cost/Month: Appx 78,000 Rs.

After Status: A 3 HP motor with a blower unit is used to deliver high volume airfor the same purpose of

homogisation by agitating the chemical mix

Running Cost /Day: Rs 110

Investment : Rs 90,000Savings / Month: Rs 75,000

WI-FI AT PLANT

LGEIL deployed a Wi-Fi solution at its manufacturing

plant in order to improve employee collaboration, allow better decision-making, and help personnel meet deadlines. The company Wi-Fi-enabled all 500 notebooks at the plant by adding more access points.

The company used the Cisco Aironet 1200 Series AP products to set up the 802.11b Wi-Fi network.

Benefits: 500 users are already on the Wi-Fi network. The flow of business information has improved, and has consequently improved co-ordination. The office area looks cleaner with fewer cables, and network maintenance costs have dropped.

QUALITY STANDARD

Control decisions.

SIX SIGMA Six Sigma seeks to improve the quality

of process outputs in manufacturing and buisness processes

Uses a set of quality management methods, including statistical methods

Creates a special infrastructure of people within the organization ("Black Belts", "Green Belts", etc.) who are experts in these methods

SIX SIGMA(SEVERAL KEY ROLES FOR ITS SUCCESSFUL IMPLEMENTATION)

Executive Leadership. Champions. Master Black Belts. Black Belts . Green Belts. Yellow Belts.

MAKING SIX SIGMA A COMMON LANGUAGE

CPQ(CUSTOMER PERCEPTION QUALITY) Perceive and Improve the Customer

Satisfaction for Product Quality through survey

Customer Survey from 10 Major cities Survey by QA based on :1. Random sample2. Questionnaire Calculation of C.P.Q.Index Feedback to other deptts. Monthly review with Top management

C.P.Q. TABLE

2004 1 1 1 1 1 1

2005 2 1 2 1 1 2

2006 5 5 5 2 4 -

Items REF A.C WM MWO CTV GSM

1 2 3 4 5

POOR FAIR GOOD V.GOOD EXCELL

I.S.O. CERTIFICATES

I.S.O. 14001I.S.O.14001 / OHSAS 18001

I.S.O CERTIFICATES

I.S.O.14001 / OHSAS 18001

OHSAS 18001

I.S.O./OHSAS ISO 14001 is a standard developed by

the International Organization for Standardization (ISO)

It establishes environmental management system (EMS) requirements for organizations of all types and sizes.

OHSAS (Occupational Health and Safety Assessment Series) 18001 is a standard for implementing a safety management system (SMS).

STRATEGIC DECISIONS

STRATEGIC DECISIONS Local and efficient manufacturing to reduce the cost

R&D potential

Regional channel and wide distribution network

Product localization

Innovative marketing strategy

LG R AND D To further enhance competencies in production

technology, the institute conducts active research and develops core manufacturing solutions, including:

PHOTO LITHOGRAPHY. THIN-FILM TECHNOLOGY. LASER APPLIED PROCESSING. SYSTEM ENGINEERING. ENGINEERING SOLUTIONS. APPEARANCE TECHNOLOGY.

THANK-YOU!!!PAWAN MULANI-46

YOGESH NARANG-

ROHIT DIALANI-

HARSH MIRPURI-

NILKESH-

RAHUL MIRANI-