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Company |
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Larsen & Toubro, Hazira |
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Industry |
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Heavy Engineering |
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Year of Submission |
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2000 |
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Status |
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Winner |
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| Larsen & Toubro Limited, Hazira Works, Surat, is a reputed modern heavy engineering manufacturing complex which faced a universal problem common to the welding process, that is, stub length wastage of electrodes. This project focuses on improving the effectiveness of the manufacturing process. The stub length is the left over part of the electrode after welding which does not get consumed and results in chronic losses. The total annual consumption of electrodes is Rs 3.5 crores. The cost of poor quality to the company was Rs 35 lakhs annually. Therefore the mission was to reduce the stub length wastage from the present 11% of annual consumption value to 4% of annual consumption value. The team adopted the Juran Methdology for quality improvement. Flowcharts and cause and effect diagrams were used to identify probable causes, test theories and then identify root causes. Of the 4 theories proved i.e. accountability, higher thickness, holder design and inaccessibility of joint, the team decided to implement accountability and holder design theories in the remedial journey. The first year savings for the company were a whopping 20 lakhs per annum. Cloning of the improvement process also lead to sustainable and widespread results in other areas. |
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