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Operations Management Assignement-1 Paper

Words: 1541, Paragraphs: 123, Pages: 6

Paper type: Essay , Subject: Management

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Adithya M | 42402 Date: 31.07.2019

Opera tions Management

Ass ignement -1

Topic: Operation Strategy of a Company

Faculty In -Charge: Prof. Hemant Jog

Name: Adithya M

Roll No.: 42402

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Adithya M | 42402 Date: 31.07.2019

Assignment Topi c: Operation Strategy of establishing a new manufacturing faci lity for

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Inverter product of Mitsubishi Electric India

Introduction on Mitsubishi Electric Corporation

The company was founded in 1921, when Mitsubishi Shipbuilding Co. (now Mitsubishi Heavy

Industries, Ltd.) spun off a factory in Kobe, Japan that made electric motors for ocean -going vessels

into a new company called Mitsubishi Electric Corporation.

In that year, the new company entered the consumer sector by manufacturing and marketing an

electric fan, which became a hit product. Over the next decade the company succeeded in landing

major contracts, including one for the development of an electric railway substation.

Over the next two decades the company began extending its reach overseas while establishing itself

as a pioneer in the development of computers, advanced air conditioning systems, automobile

electronics, satellites powered by photovoltaic technology, and nuclear power generation.

Today Mitsubishi Electric is a global giant, with operations in 35 countries, more than 100,000

employees, and consolidated net sales of more than US$32 billion.

About Mit subishi Electric in India

In India, Mitsubishi Electric’s operations were flagged -off in the mid -1950s. Since then, we have grown

to become one of the most highly -valued organisations in this country. With the passage of time, we

have moulded ourselves int o the Indian flavour and developed a wide range of innovative and high –

quality products for the Indian market. These include air conditioners, visual information systems,

photovoltaic (solar) solutions, transportation systems, automotive equipment and indu strial

automation machinery. Common to all the products and endeavours is MEQ, which stands for

“”Mitsubishi Electric Quality.””

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Adithya M | 42402 Date: 31.07.2019

Corporate Statement & Mission

Our corporate statement, "Changes for the Better” signifies the

goal and stance of the Mitsubis hi Electric Group to continually

innovate for the better.

The Mitsubishi Electric Group will continually improve its

technologies and services by applying creativity to all aspects of its

business. By doing so, we enhance the quality of life in our society .

To this end, all members of the Group will pursue the following

Seven Guiding Principles .

We will drive growth through:

1. Acceleration and focus on strong businesses

2. Further global expansion

3. Creation of new, strong, businesses

4. Reinforcement of our soluti ons business

Further Global Expansion:

Mitsubish i Electric I ndia (MEI) group includes the following division:

1. Factory Auto mation and Industrial Division (FAID) – Deals with Automation

products su ch as PLC, HMI, Inverters, Servo Systems, Robots and LVS

2. Living Environ ment (LE) – Deals with commerc ial and industrial air conditioners.

3. Transport Systems (TS)

4. Visual Imaging (VI)

5. Power Semic onductors (PS)

Under the Make in India cam paign , MEI – FAID s et-up a manufacturing plant in Pune in Dec ’14 to

produce its own range of PLC with the help of R&D team of India monitored by Japan. What started

as a SKD, has now become a full -fledged manufacturing unit including the PCB manufacturing of CPU.

This is an important milestone in the hist ory o f MEI.

To expand business further and penetrate markets deeper through cost -effective and t imely delivery

of products, MEI in 2019 has decided to expand its manufacturing facility to produce inverters in India.

This strategic call h as been taken considering the booming markets for inverters in energy saving

application and IoT trends catchin g up.

Operation Strategy to se t-up Manufacturing of I nverters in India

Positioning the Production System –

The existing manufa cturing u nit ha s four b locks. First block is the testing unit for P LC manufacturing

unit. Second block houses the manufacturing floor for PLC and the Engineering department. Third

block is the Head Office of FAID department while the fourth block is the service and repair unit.

As the inverter unit requires the PCB assem bly unit, a decision to shift the Head office to a different

place wa s taken and the third block is converte d into SKD block for inve rter line. The existing testing

unit can be ex panded for the inverter unit as well.

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Adithya M | 42402 Date: 31.07.2019

Factory Facilit y

After discussions with various depart ments inclu ding Marketing, R&D, SCM, A&F the following

dec isions were concluded in Mar ’19 . The goal o f the committee was to hav e a full -fledged

manufacturing of inverters b efore FY22.

Inverters up to rating of 15kW (small inv erters) will be manufactured in India while the rest

will be continued to be imported from Japan.

In the first phase of execution, only SKD unit will be set -up in the existing factory premises. All

the components excluding plastic encl osures will be imported from Mitsubishi Electric, Japan

to stic k to the quality norms. The deadline for first phase is Sep ’19. Separate test bench for

inverters will also be set -up during this p hase.

Qual ity of SKD will be e valuated from Sep ’19 to Mar ’20 before second phase will b e e xecuted.

In the second phase of execution, PCB asse mbly for inverters will be executed . The control

board (heart of inverters) will be the only part t hat will be imported from Mitsubishi Electric,

Japan considering the criticalit y of the part. Second PCB asse mbly line will b e erected along

wi th existing PCB assembly of PLC. Second phase will be set in motion in Apr ’20 and deadline

is Jan ’21.

In the final phase of execution, inverter manufa cturing will be extend ed to large inverter of

rating up to 90 kW while the rest will be imported from Japan. The existing PCB assembly a nd

SKD unit will be extended to large inverters as well. The control board will be imported from

Japan while rest of the components and e nclos ures wil l be lo calised. The last phase of

execution will start f rom Sep ’21 and deadline to complete is Dec ’21.

Service Facility

The exis ting service facilit ies of MEI in Pune, Gurgaon, Chennai, Jaipur and Coimbatore will continue

servicing and repairing o f inverters. F urther t he committee agreed to establish authorised service

centres in tier II cities . Places shortlisted were Haridwar, Belgaum/ Dharwad, Kolkat a, Lucknow and

Indore / Bhopal .

Re search and Development and Qu ality Assur ance Department

The existing designs of inverte rs imported from Mitsubishi Electric, Jap an was to be incorporated in

India as well. Hence product designing and development was not required. R esources were planned

to be added to R&D to design test jigs and simulating labs and c hambers . R&D was also responsible to

find suitable vendors for purchase of localised components.

Resources needed to be added to Quality Assura nce (QA) depa rtment . The responsibility of QA is to

ensure all standards and protocols are followed in all processes as prescribed Mitsub ishi Electric ,

Jap an. The allotted resource will be sent to Japan for tr aining on QA practices and QA department will

headed b y Japan expatriate. Following were some roles of QA:

? Validat e and ap prove dra wings and design of Test Jigs .

? Verification of PCB Gerber & Documents for PCB manufacturing supplier.

? Confirm or Validate the Feasibility & Capability of predefined requirement for Mass


? Ensurin g disposal of Solid Waste Scrap through E -waste only .

? Ensuring all st andar ds are met as per ISO and practices of Mitsubi shi Electr ic, Japan.

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Adithya M | 42402 Date: 31.07.2019

Technology Selection

Some pre -requisites of manufacturing line were:

1. Products should be conformal coated.

2. RoHS and CE compliant products .

3. Surface Mount Technology of PCB components.

4. 3D auto inspection of inverters.

To incorporate the above requirements, following techn ology were incorporated:

? SMT Line with T iers – I Production Machineries.

? Minimum Component Package size 0402 inch (1005 mm) .

? Auto Loader of componen ts in to SMT machine.

? Pick and Place of components through Robot s.

? Reflo w soldering o f SMT line products and wave soldering of PCB of remaining comp onents.

? Auto conformal coating of PCB.

? Traceability and Tracking through ERP and e -fact ory (Mitsubishi Electri c adaptation of IoT).

? Production facility to be UL cert ified.

? Auto tester with report generation.

? Built -in chamber facility of chamber testing and environment simulati on.

? High Voltage test facil ity.

Pro ject Timeline:

Phase Activi ty 2019 2020 20 21 2022

Phase I

SK D set -up 30 th Sep

Manufacturi ng

of small and

large inverters

up to 90kW.

Vendor for localised product 31 st Au g

Test Jigs Design 15 th Aug

Testing Facility set -up 30th Sep

Phase II

PCB assembly set -up 31 st Dec

Vendor for localised product 30 th Sep

Conformal Coating set -up 30th Nov

Expansion of service facility 31 st Dec

Phase III Set -up for large inverter


31st Dec

Warehouse Facility

Existing ware house for FG in Wadagaon, Pune to be extended for Inverter products. For warehouse

requ irement of RM, existing facility in building – I to be eval uated and extended for inverter RM.

Benefits of the new set -up

? Timely delivery of products reducing the lead time by more than 2 weeks. Exis ting lead time

of imported products is 3 to 5 weeks which can be reduced to 1 to 2 weeks.

? Reduced price of inverters. Localisation of most of the components will result in reduction of

price s close to 30% .

? Expansion of service facilities results in faster ser vices reduc ing break -down time.

About the author

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