INSIDE-OUT

DivgiWarnerPune, India

CUSTOMER DELIGHT, RIGHT FIRST TIME, EVERY TIME!

ISSUE 33 I DECEMBER 2013 / PAGES 8

• Innovation as an Organizational Capability

• Toyota Tundra Project

• Nissan - Ashok Leyland ASES Audit

• Face of Product Leadership

• BorgWarner Debuts First-To-Market Electronic Front-Wheel Drive Technology

• BorgWarner Team Visit

• Mahindra Great Escape - Goa

• Diwali Celebrations - In a different light

Ask any of today’s CEOs and they are likely to tell you that the ability to develop new ideas and innovations is one of the top priorities of their organizations. The emergence of intense global competition has seen innovation become increasingly central to competitiveness. It is innovation that creates the breakthroughs required for adapting to changing markets, technologies and modes of competition. Managing the process of innovation is complex and fraught with uncertainties. But slowly and steadily, experience from researchers and practitioners is revealing that innovation can be nurtured, systematized and, therefore, replicated within organizations. The successful implementation of a model of innovation requires focus on some core elements and processes. It is possible to develop and then harness this innovation metacapability to achieve outstanding organizational business performance.

From our experience at DivgiWarner, we have learnt that innovation capability is about synthesizing operating paradigms of new product creation, and ongoing mainstream revenue operations. It is a concrete ability to continually transform new learning and ideas into products and processes. We have grasped the paradoxical linkage between creativity and disciplined processes to convert creativity into tangible products. Based on our experience over the last 20 years, we believe it is possible to generate a holistic model of innovation for a firm.

Innovation capability is composed of reinforcing practices and processes. These practices stimulate, enable, measure, and reinforce innovation. Very importantly, the model is based on the fundamental premise that innovation and its outcomes are the spearhead of our competitive strategy. Our various processes can be classified into 7 broad categories: vision and strategy, competence base, organizational intelligence, creativity and idea management, organizational structure and systems, culture and climate, and management of technology.

Even a cursory reading of the history of invention and innovation at BorgWarner throws up the link among the power of a shared vision of an appealing big-picture, strategic foresight, and incisive innovative insight that leads to breakthroughs. Successful innovation requires a clear-headed articulation of a common vision and the firm expression of strategic intent and direction. A disciplined process of continual analysis and development of the requisite competencies in the organization is indispensable. Competencies include knowledge, skills, and increasingly, the process abilities to collaborate in a complex, networked world. A certain maturity is required to leverage, combine and recombine knowledge and resources into disparate markets, technologies, and products. BorgWarner’s long and inspiring history of prolific inventions clearly shows the criticality of integrating advances in many diverse fields.

Organizational intelligence is about learning from customers and suppliers (while respecting IPR) and learning about competitors. Understanding markets and competition is critical to innovation management in terms of directing the competitive advantage of innovation against a rival’s weakness.

Dear Reader, Greetings from DivgiWarner!

Innovation as an Organizational Capability

Fostering creativity and idea management is at the heart of innovation capability. It operates along a continuous spectrum. At one end we have the cumulative effect of small ideas and acts of individual employees snowballing into continual improvements while at the other end we have the possibility of a single radical and breakthrough insight. The organization needs to reinforce and empower employees by providing resources and encouragement to convert ideas into action. Aspects like reward systems and goal setting for innovation need to be deliberated upon and continuously improved. Without a conducive and enabling environment, other components of the innovation system are unlikely to succeed.

The appropriate culture and climate are also vitally important to innovation success. These cultural characteristics include tolerance of ambiguity, empowered employees, creative time, and communication. There is a willingness to take risk and tolerate ambiguity that comes with it. Risk and ambiguity are reduced to manageable levels through effective program management and communication. There is a systematic process for reviewing lessons learnt from both successes and failures. This creates an organizational capability of very effective continuous learning and improvement. Finally, the management of technology is crucial to today’s organizations. Innovative firms link their core technology strategy to innovation and business strategies. This alignment creates a powerful coherence that sets up a virtual spiral of reinforcing competencies to strengthen the competitive advantage derived from the organization’s technological prowess. Effective market sensing and forecasting of trends and emerging technologies are used to identify technologies, products, markets, and to reorient the company to avoid threats or grasp new opportunities.

Over the last 112 years, BorgWarner has built its innovation capability that enables it today to continue on its mission of developing leading and sustainable powertrain technologies that reduce emissions, improve fuel economy, and enhance vehicle performance.

Best wishes,

Jitendra Divgi Managing Director

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Toyota Tundra Project

The Toyota Tundra is a full-size pickup truck manufactured in the US by the Japanese manufacturer  Toyota  since May 1999. The Tundra was nominated for the North American Truck of the Year award and was Motor Trend magazine's Truck of the Year in 2000 and 2008.

The Toyota Tundra Project is one of DivgiWarner’s most prestigious global supply chain programs and includes the manufacture of Flange and Sprocket Driven components installed in BorgWarner’s Transfer Case mounted on the Toyota Tundra world-wide.

The Project was awarded by BorgWarner in July, 2012 and involves end-to-end project responsibilities; design and development, manufacture and export as well as warehousing and inventory management of the components at a facility at Charleston, South Carolina. The parts are fed from this warehouse to BorgWarner’s plant at Seneca, South Carolina, about 250 miles north - west of Charleston daily through Milk-run trucks.

Since the commencement of shipment to Charleston in April 2013, the project is being executed to strict Service Level Agreements that require fulfilling BorgWarner’s minimum monthly requirement of inventory at the Charleston warehouse to sustain its production capacity of 4500 Transfer cases per month.

An unmatched inventory control of the components at Charleston through clockwork planning and execution at the Bhosari Plant; planning of raw material, production, packaging, and a strict adherence to dispatch dates has been the hallmark of this project with no disruptions to BorgWarner’s Production Line as of date.

Digvijay Jadhav Sales & Exports

SPROCKET FLANGE

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Nissan - Ashok Leyland ASES Audit

In April, 2012, Nissan – Ashok Leyland included DivgiWarner as one of their Lead Suppliers for the development and supply Timing Gear parts for ZD 30 Engine for their “Partner” commercial vehicle. A Letter of Intent for the supply was awarded for the same.

As part of the long-term collaborative supplier engagement process, DivgiWarner is being assessed on Product Quality qualification processes; Alliance New Product Quality Procedure, (ANPQP), Alliance Supplier Evaluation Standard, (ASES), Calculation of Quality in the Project, (CQP), Rank-up and Step-up processes specially developed by Renault – Nissan.

The qualification process is largely based on the ISO/TS 16949 specifications that define the fundamental quality system requirements but additionally includes the specially developed tools and processes that lay greater focus on customer satisfaction as well as self-improvement through efficient problem solving and continuous improvement. The evaluation was commenced in April 2012 at Sirsi Plant.

The essential requirements of the Alliance Supplier Evaluation Standard Process (ASES) are:• Achievement of a minimum ASES level of C rank after ASES evaluation• Assignment of a ANPQP Representative (SAR) responsible for ANPQP deployment within the organization• Training of staff working directly with Nissan in ANPQP• Implementation of good practices regarding sustainable development / social responsibility

DivgiWarner has conformed to the requirements of the ASES audit with regard to the core tools being implemented as part of its Product Quality and Operational Excellence Process. Regarding the training in ANPQP, the ASES Audit highlighted a Rank-Up activity (activities undertaken to enable the qualification to a higher grade) for the DivgiWarner team. The Rank-up activity involves 4 stages:

• Kick-off and Contract Signature• Coaching and Implementation• Check of effective implementation• Reassessment of ASES evaluation

The Rank-up activity was conducted between July and November 2013. Results of the evaluation are awaited from the Nissan-Ashok Leyland.

Murlidhar NQuality Systems

Mr. Gopal Dalvi (L) and Mr. Vijay Warade (R) participated in the Commercial Vehicle Manufacturing Congress 2013 (COMVEC) organized by the Society of Automobile Engineers (SAE) at Chicago, USA in Oct, 2013. They made the presentation on DivgiWarner’s Operator Licensing Process on which the paper has been published by SAE.

Mr. Rakesh Sharma,Head-Bhosari Operations (1st row, extreme left)

participated in aBorgWarner Manufacturing Council held

at Seneca, USA in Nov, 2013

Local to Global

BorgWarner Team Visit

Mahindra Great Escape GoaGajanan ChitaleSales & Customer Support

The 104th edition of the Mahindra Great Escape, one of India’s most popular off-roading adventures, concluded successfully on August 24, 2013 in North Goa with over 110 vehicles from the Mahindra stable maneuvering the challenging route. The event received an overwhelming response from the off-roading community with Mahindra vehicle owners from all over Goa, Maharashtra and other neighboring areas participating in the rally.

The rally was flagged off at 9:30am from Heera farms, Dhargal, North Goa. Participants entered the event in Boleros, Scorpios and Thar 4X4s- proving yet again the ruggedness of vehicles from the Mahindra stable. These iconic Mahindra SUVs negotiated the arduous terrain and en route, the convoy of vehicles passed through slushy rain soaked terrain and streams.

DivgiWarner participated in a Thar CRDe 4WD. This model of the Thar is installed with the DivgiWarner Mechanical Shift Transfer Case. The Transfer Case delivers superior traction through rocky and slushy rain soaked terrain, canals and streams and adds ruggedness to this vehicle from the Mahindra stable.

Participants Mr. Gajanan Chitale, Senior Engineer Support was at the wheel. Mr. Ashwin Koppikar, Head-Commercial was Co-driver. DivgiWarner Management provided able support.

Gopal DalviHuman Resources

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Face of Product Leadership

Head Operations-Bhosari Plant

Education: Degree in Mechanical Engineering (B.E.)

Total Experience: 18 Years

With DivgiWarner: 11 years

Career Goals: To be a successful professional with knowledge, experience and leadership skills to deliver the best results to an organization

Hobbies: Reading, exercising, cooking, watching movies and playing cricket

Family Details: Family of four; husband, wife, daughter and son

What is your current role in DivgiWarner?

As Head of Operations, I lead the operational activities at the Bhosari plant; Production Planning and Control, Supply Chain Management, manufacturing and Assembly and Quality Assurance. I am also responsible for providing On-Time Defect Free Quality and Hassle-free Services to the Customer.

What has been your experience with DivgiWarner?

The 11 years of my work experience with DivgiWarner has exposed me to domains such as Manufacturing and Assembly, Planning, QA and Export-Import Management. I also got excellent exposure to Quality, Environment-safety and Production Management Systems. The implementation of TS 16949, ISO 14001 and BorgWarner Production System (BWPS) was a unique experience that helped me develop my skills and ability in process improvements, building system culture problem solving and people management. Consistent practice of education and training at DivgiWarner has helped me gain and update my knowledge on Management Development Programs, 6 Sigma Black Belt Course, etc.

What has been your contribution to DivgiWarner’s Product Leadership Initiatives?

Some of the successful initiatives were sustaining the J-97 Transfer case defect free supply (Zero PPM), active participation in the Development of Torque on Demand (TOD) Transfer Case, supply of Ring Gear for BorgWarner Korea, GM Flange etc. I enjoyed playing the lead role in the effective implementation of the BWPS and scoring highest in BWQS (Borg Warner Quality System) among all BorgWarner TTS plants. I feel that, along with my Operations Team, I have been able to contribute significantly to operational excellence initiatives on Quality and Environment safety in last 3-4 years.

What do you believe are some of your notable achievements at DivgiWarner?

Development of GEMBA culture, Zero PPM for Transfer Case and ALH from last 33 months, Implementation and sustenance of the QSB (Quality System Basics) culture, Focus on Customer Touch Points (CTP) and the CFT (Team building) culture for Operational Excellence are some of my notable team-driven achievements.

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AUBURN HILLS, Mich., Nov. 19, 2013: BorgWarner introduces the world's first electronic limited slip differential designed for the front transaxle of a front-wheel drive (FWD) vehicle on the 2013 Volkswagen Golf GTI with Performance Pack. Known as front cross differential (FXD) technology, the system greatly enhances vehicle traction, handling and stability without sacrificing engine power. Under certain driving conditions, the FXD technology's enhanced vehicle performance approaches that of an all-wheel drive (AWD) system but costs less and offers better fuel economy. The technology uses the same electro-hydraulic actuation technology recently launched on BorgWarner's fifth generation AWD coupling, and offers automakers a compact and easy-to-install electronic limited slip differential solution with a wide range of calibration options.

"BorgWarner's FXD technology received very positive reviews during customer demonstrations for its improved traction and vehicle performance," said Dr. Stefan Demmerle, President and General Manager, BorgWarner TorqTransfer Systems. "Unlike brake-based systems, our pre-emptive technology anticipates the torque needed in different driving situations, delivering unsurpassed traction, handling and stability while maximizing the fun-to-drive experience for front-wheel drive vehicles."

A BorgWarnerPress Release

BorgWarner Debuts First-To-MarketElectronic Front-Wheel Drive Technology

BorgWarner's new front cross differential (FXD) technology provides improved traction and stability performance for front-wheel drive vehicles.

BorgWarner's bolt-on FXD technology uses the same vehicle sensor inputs as an AWD system to generate controlled locking torque between the left and right front wheels, directing power to the wheel with the best traction even before wheels slip or spin. In some situations, such as climbing an icy hill, FXD technology also improves acceleration through more effective use of available engine power compared with brake-based traction control systems, which tend to consume engine power. For better cornering performance, the system delivers a torque vectoring effect, shifting more power to the outer wheel to reduce inner wheel slip. To enhance vehicle stability, the system has the ability to shift more power to the inner wheel, which greatly reduces intervention from brake-based stability control systems. Designed for easy integration, BorgWarner's FXD technology enables automakers to offer a cost-effective, fuel-efficient alternative to AWD.

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Diwali Celebrations In a different light

Vijay Nevrekar & Gajanan ChitaleAdvance Business Development

On the occasion of Diwali, at DivgiWarner, celebrations took an exciting new turn. Employees were gifted energy conserving CFL bulbs along with the customary sweets.CFL lights would not just keep up the spirit of Diwali but also help conserve energy with their capacity to save Rs. 1,50,000/- worth of energy.The Managing Director of the company, Mr. Jitendra Divgi distributed the gifts to all. We hope that large corporations too adopt such environmentally conscious gestures.

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SAKAL

DivgiWarnerPune, India