ISSUE 31MARCH 2019

Lawkim wins National ‘Kaizen Award’!

Lawkimwas awarded the 1st Prize in the Innova5ve Kaizen category at CII’s 34th Kaizen Compe55on,organizedbytheCII-Ins5tuteofQuality,TPMclubofIndiaattheHyaIRegencyPune,on4th&5thMarch2019.

TheteampresentedtheKaizenonan Innova5veandUniqueMotor inspec5onmethodasagainst theTradi5onalMethod.InventedduringthedevelopmentofthenewBLDCmotorbyDesign&Developmentteam,thisKaizenisconsideredtobeanassetfortheCompanyandwillresultinacapexsavingofmorethanRs50Lakhs.

TheLawkimteamscoredover9teamsfromalloverIndiaintheInnova5veKaizencategory,presen5ngtoapanelofthreeeminentjudgesand150membersintheaudience.Atotalof39teamspar5cipatedinthecompe55oninfourdifferentcategories.

Somnath Bhosale, Jury Mr. Atul Sikchi, Manager Business Excellence, Bharat Forge Ltd, Mr. Amit Panchal, General Manager Business Excellence, Mr. P Gopalkrishnan, CII TPM Club of India, Vijay Pawar

Grant of BIS Licence for 3 Phase Energy Efficient Induction Motors LawkimisnowlicensedbytheBureauofIndianStandards(BIS)tomarkitsthreephasemotorswithanIEmarkasper efficiency standards, a mandatory requirement for sellingthemotorsintheIndianmarket.Thismandatorycomplianceisanini5a5veoftheIndiangovernmenttorestrictthesaleofnon-efficient (IE1) motors, with an aim to reduce overallpowerconsump5onandfollowthego-greenpath.

Lawkim’smotors standapart fromcompe55ondue to theirbest-in-class efficiencies, world-class manufacturing shopfloor and use of best quality raw material. BIS approvedlaboratoriesscru5nisedandapprovedthemotortestreportsa_er a thorough examina5on of internal processes andproduc5oncapabili5es,all inwhichLawkimexcelled.Duringthe factory visit the auditor sealed one of the produc5onmotors and sent to an external laboratory for compliancetes5ng.The license isgrantedforall4polemotorsand is tobeextendedtootherpolari5esinfuture.

This achievement is an outcome of the joint effortsundertakenbyProduc5on,Quality,Designandallourotherrelateddepartments,withoutwhomitwouldhavebeenanimpossible task. The license is not just the cer5ficate ofLawkim’scapabilitytomanufactureandsell3PhaseEnergyEfficient(IE2/IE3)Induc5onmotors,butalsoopensupavasthorizon of opportuni5es in a rela5vely newer segment,whichitwilldefinitelyexcelasalways.

Digitising Lawkim’s Systems

The ar5cle on ‘Industrial Internet of Things’ in our June 2018 issue of Chaitanya carried theimplementa5onofIIoTonourHighPressureDie-Cas5ngMachineontheShopflooraspartofourTPMjourney!Whichpredictsbreakdownsbeforetheyoccur!Thisisworkingwell.

We have taken this further by introducing a Compac System (TPM) that enables tracking of OEE(Opera5ngEquipmentEffec5veness)atMachine,Cell,DepartmentandPlant levels,produc5onlosseswith detailed analysis, that undertakes a root-cause analysis with break-down data to enable trackexactmachineu5lisa5on.

AlsoanEnergyManagementSystemhasbeen introduceddigitally connec5ngeachcell ineachshopwith energy meters, centrally capturing energy data. This monitors uneven consump5on paIernsarising inthesupplyofenergytopar5cularcellsormachines. Preven5vemeasureshelpcorrectanyenergyfluctua5onthuscontrollingenergycosts.

FinallyDigi5sa5onofMaterialIndentsalsoimplementsinputsbudgetssanc5oned,tohelptheuserstaywithin the budget allocated. There are various levels of approvals and several benefits like thepaperlesssystemthatimprovesproduc5vity,andrecordingdatawhichisavailablewheneverrequired.Thiseliminatesphysicalapprovalstotrack areaswhereholdupstakeplacesothattheprogressof apar5cularIndentisspeededup.

Quality Circle Conclave & Kaizen Sammelan!

LawkimwasrecentlyappreciatedbyourcustomerM/s.HighlyAppliancesattheirVendorMeet in Ahmedabad, and awarded the Best Quality Performance Award for the zerodefect product supplied to them. This is proof that the Quality Circle conceptimplementedby theQC team in2013 isbringingaboutaposi5ve improvementon theshop floor with the forma5on of forums to exchange sugges5ons and find solu5ons.Quality Circle is modern management concept designed to bring together all level ofworkforce in an organiza5on for sejng standards of excellence and achieving beIerresults.QualityCirclesensureeveryoneatthefactoryistotallyinvolvedinthisjourneyforoverall Improvement and encourages employees to come up with beIer ideas forimproving Ergonomics, Safety, Quality, andEnvironmentattheworkplace.

On November 5th 2018, Lawkim celebrated Quality Circle and KAIZENSammelan.OurBusinessHead,Mr.X.K.MarkerandPlantHead,Mr.A.M.Pendse (Plant Head)were Chief Guests. The tradi5onal Deep-Prajwalanceremony took place followed by Ganesh Vandana to inaugurate theceremony. Once again, the purpose of Quality Circle along with itsjourney and its current status was emphasised by Manoj Pa5l. Team“EKATA” presented the Quality Improvement project – Herme5c RotorDie cas5ng Rejec5on Reduc5on which was presented at the 31stMaharashtra State Level QC Circle Compe55on held at Kolhapur on 6thSeptember2018.ThisqualityCircleprojectresultedintotheapprecia5onfrom the customer Highly Appliances. A video on IOT (Internet ofThings)wasshownandexplainedtothegatheringbyDJPa5landMr.DigvijayPa5ltomakeemployeesawareofconceptsthatcouldbeusedatwork.AKnowledgeQuizwasconductedwhere4teamspar5cipated,also involving theaudience.TheQualityCircle teamwere felicitated by the Chief Guests andwinners of the Pain5ngcompe55onheldinthecompany.

Team EKATA presenting

Teams at the Quiz Competition

The Winning Teams!

Extending our visibility and reach…. at Myanmar ‘ T h e E n t e r p r i s e I n d i a ’Exhibi5on was inauguratedby President Shri Ram NathKovind on 13th Dec 2018 inMyanmar which aimed atbringing inthebestof Indianproducts,services,innova5onand know-how to businessp a r t n e r s , s t a r t - u p s ,incubators and customersto Myanmar. This exhibi5onset up by the Confedera5onof Indian Industry (CII),included about 45-50 Indiancompanies ranging from verylarge companies to smalle n t e r p r i s e s , t o s h ow c a s eIndianmanufacturingcapabili5esandindustrialtechnology.

Thisiswasthefirst5methataGodrejdivisionexhibitedinMyanmarposttheli_ingofthebanimposedbyUNSCprohibi5ng Myanmar from engaging in financial trade. “We, indeed, have important lessons to sharewithMyanmar inthisregard, for bothou r count r i e sf a c e s i m i l a rsocio-economicchallenges andh a v e s i m i l a ro b j e c 5 v e s t om e e t . I a m ,t h e r e f o r e ,p a r 5 c u l a r l yhappy that thisShow includes af u l l - d a yconference onMicro, Small andM e d i u mEnterprises sector,"President Kovinds a i d i n h i sstatementduringthe Inaugura lp r o g r a maIended by ourcolleagues fromLawkim -Mr. V.VR a n a d e , M r.Praful Yelve, Mr.Ganesh Shirkeand Mr. AkashUjawane.

And at Dubai… Godrej Bambusa bike par5cipatedat 2nd Dubai Interna5onal BikeShowheldonJanuary11th&12th,2019 at the Dubai World TradeCentre, con5nuing our presencethere from the previous year. TheDubai Interna5onal Bike Show(DIBE) is the largest professionalbicycleexhibi5onintheMiddleEastand North Africa, aIrac5ng manybicycle enthusiasts, professionaldriversandbicyclebusinessownerstopar5cipateintheevent.

GodrejBambusabikewasdisplayedalongsidesomeamazingnewConceptE-BikesandGearedBikesbybrandslikeLamborghini,CeramicBikes,Giant,Meridatonameafew…!

Our Godrej Bambusa bike aIracted a lot of aIen5on from local bicycling enthusiasts, including professionalsbikers from Italy, Germany, India, Australia and the Czech Republic, Netherlands, and the the United States.Enthusiasts from China, Hong Kong, Taiwan were also present, interac5ng with us at the show all of whomappreciatedtheconceptofBamboobicycles,par5cularlythefinishweimpartedtothebikeswedisplayed.Thereare opportuni5es to sell and promote our Bambusa bike inDubai and other emirates, andwe intend to takeadvantageofthese.Therearealsoopportuni5eswithAmazonUAEtolaunchandprovideusaplavormtosellourbamboobikesonlineintheUAEmarket.

Testing the weight of the bamboo frame!

Snippets….Dr. Henry Noltie, a historical researcher and author of Flora of Bhutan from Royal Botanical Garden Edinburgh visited Chennai, India in February 2019. He travelled to Pune and shared his thoughts on Dapuri Drawings (a Garden established at Dapodi, Pune in 1800). The talk was organized by NGCPR in collaboration with Savitribai Phule, Pune University at Department of Botany on 4th February 2019, which was well attended and appreciated by more than 40 nature enthusiasts, botanists and foresters from Pune and adjoining cities. As a part of one of the projects on Nicolas Alexander Dalzell he visited the Hewra Garden, Junnar jointly with NGCPR team. He also visited NGCPR, Lawkim Campus and greatly appreciated the taxonomic work that the researchers at the Centre were performing.

Visit of Dr. Henry Noltie to NGCPR and his talk on ‘Dapuri Drawings’.

International Women’s Day Celebrations! Interna5onalWomen'sDay(March8),aglobaldaycelebra5ng the social, economic, cultural andpoli5cal achievements of women, also marks acall toac5onforaccelera5nggenderparity. Ourwomen employees and spouses of our maleemployees at Shindewadi had a specialcelebra5on organised for them at Hotel AmrutaGarden.

Well organised with knowledge sharing andawareness sessions for the women, they gainedinforma5on on Stress Management, Living in aJointFamilyandWork-LifeBalancefromDrSmitaSovaniawellknowFriend-PhilosopherandGuide.A_er lunchMs.AmrutaMagardeliveredsessionsonWomenEmpowerment andPersonalityDevelopment. Fun-filled gamesandac5vi5esmarked theday and thepar5cipants enjoyed the day with cake and gi_s a_er sharing their experiences and learnings from theprogramme.

From the Editor’s Desk.....

DearFriends,

YouwillbehappytoknowthatLawkimcon5nuesonitspathwaytoCorporateExcellence,undeterredbychallengesalongtheway.

• Our Godrej Lawkim Shindewadi Plant completed “1963 SafeWorking Days”without any reportable incidentfrom23/04/2014todate.WeshallstrivetomaintainourSafeWorkingDaysposi5oninfuturealso.

• Calibra5on Services has added another New Accredita5on to their list - ‘Medical Device Accredita;on’. Thisaccredita5on, the first of its kind in India, conforms to the Interna5onal Standard ISO/IEC 17025. Lawkim’sCalibra5onLaboratoryisthefirstIndianLabtoearnthisrecogni5on.

• OurBusinessExcellenceExternalAssessmentra5ngmoveduponelevelhigher,andwewerealsoawardedwithacer5ficatefor“StrongCommitmenttoExcel”attheNaorojiGodrejAwardforBusinessExcellence.

Weclosedourfinancialyear18-19onagoodnotedespitesomemixedchallenges.HoweverourteamcouldhavedonebeIertofallinlinewiththepast3yearstrendswhereourperformancegrewyearonyear.

Whilst our topline target of 400 crores was achieved, increases came from upward movement of metals,subs5tu5ngdownwardvolumesfromHighlyAppliancestowhomwesupplyACcompressormotors.LargelyduetothefactthatthemarketforAir-condi5onershasn’tpickedupasmuchasplannedbyourcustomers,whichimpactedourvolumegrowth.AlsoHighlyApplianceshavebegunmovingfastertowardsadop5nginvertermotorswhichtheypresentlyprocurefromtheirChinaopera5ons.Nowweareofferingsuchsolu5ons,andlooktocloselyworkwiththemtofulfiltheirneeds.

WewereslowingejngourBLDCmotorscer5fiedbyourinternalAppliancedivisionfortheirrequirementswhichalso affected our volume growth this year. And in the mean5me, they chose another supplier to share futurevolumes with. Also customer clearances for exports mainly to the US is taking 5me and we fell behind in ournumbersascomparedtolastyear’slevels.Due to these reasons our boIom linewas adversely impacted andwemissed our planned number by a crore.Howeverthiscouldhaveimpactedourmarginsmuchmoreadverselyhaditnotbeenforsomeverygoodeffortsbytheteamincontrollingandloweringvariableandfixedcosts,withbeIerinterestcostandbeIermanagementofworkingcapital.The expected growth in the economy and for the manufacturing industry in general is going to open up newopportuni5es forusnot just in IndustrialandCommercialmotorssegment,butalso forLamandComponentsasboth for domes5c and interna5onal markets. We will focus on scalability for these segments with a profitableproductmixwithinthisyearandprogressivelybeyondasit is impera5veforustogrowourprofitability.Wehavechalkedoutcri5caltoachieveschedulesbothontoplinegrowthandimprovingcostcompe55venessthroughvalueengineering,beIerbuyingandimprovingproduc5vityofusageofmaterials.Hopefully, wewill begin the new financial yearwith performance booming on all fronts, so that customerconfidencecanreachanewhighinus!

Warmly,

Vijay Crishna