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1.0 PURPOSE


To establish and maintain documented procedures for indegenisation of the components.





.0 SCOPE


The scope of the procedure covers feasibility study on components, selection of vendors, capacity study on vendors, rate negotiation and finalisation, approval for the indegenised components.


.0 RESPONSIBILITY


It is the responsibility of the commercial group head to ensure that the procedures laid down herein are implemented and followed.


4.0 PROCEDURE


4.1 Feasibility Study on the Component


4.1.1 Drawing and Specifications for the component has to be collected from the Engineering Department


4.1. Study has to made for each component and the corresponding details has to be filled in the FRM/VD/01 as follows.


a) Part Name & Part Number of the item to be localized should be entered.


b) Monthly requirement of the item is calculated as,


Sum of (APL quantity of the selected part no. in each wiring harness x Avgerage Monthly Production plan of the corresponding wiring harness)


c) Per day requirement of the item should be calculated as,


Monthly Requirement of the item/No. of working days per month.


d) Samples of the component(10Nos) and its corresponding mating part(Nos) has to be collected from the stores.


e) Net weight of the component is calculated using weighing machine














f) Other required details has to be collected from the Specifications and the form should be filled.


4. Capacity Study on the Supplier


4..1 This study has to be made at supplier end to identify his capacity to manufacture and supply the component.





4.. The following Mould Details has to be collected from the supplier and has to filled in the FRM/VD/0


a) Base Material and its grade for the Mould manufacture.


b) No. of cavities in the mould


c) Type of the machine to be used


d) Manufacturer of the machine


e) Capacity of the machine


f) Whether Fully Automatic machine to be used or Semi Automatic machine to be used


g) Current Idle time of the machine


h) Availability of the Man Power in terms of no. of shifts


i) Details of special process required for manufacturing the mould of this particular component.


4.. The following Component Details has to be collected from the supplier and has to be filled in the FRM/VD/0


a) Base Material and its grade for the component manufacture.


b) Filler Content in the material (if any)


c) Type of the machine to be used


d) Manufacturer of the machine


e) Capacity of the machine


f) Whether Fully Automatic machine to be used or Semi Automatic machine to be used


g) Current Idle time of the machine


h) Availability of the Man Power in terms of no. of shifts


i) Details of special process required(if any) for manufacturing the component of this particular component


4..4 The following details has to be collected regarding quality aspects


a) Inspection Devices required and its availability at supplier end has to be verified














b) Availability of the Man Power in terms of no. of shifts


4..5 Lead Time required for the development of the mould has to be obtained from the supplier


4..6 Time required for the development of the component has to be obtained from the supplier.


4. Cost Breakup Sheet


4..1 This sheet has to be prepared in the FRM/VD/0 based on the details collected in the FRM/VD/01, FRM/VD/0


4.. Monthly requirement of the item is calculated as follows


Sum of (APL quantity of the selected part no. in each wiring harness x Average Monthly Production plan of the corresponding wiring harness)


4.. Raw Material Cost of the component is calculated as follows


a) Net weight of the component is calculated using weighing machine


b) Gross weight of the component is calculated as follows


Gross Weight = Net weight + Runner weight + Losses


Runner Weight and Losses depends upon the complexity of the component.


c) Type of raw material to be used


d) Cost of Raw material per Kg has to be obtained from the supplier and the proof for the same has to be attached.


e) Cost of Raw material per piece is calculated as


(Cost of raw material/Kg) x (Gross weight of the component in gms)


-------------------------------------------------------------------


1000














4..4 Machining Cost for the component is calculated as follows


a) Cycle Time of the component is taken considering the complexity and criticality of the component.


b) No. of Cavities has to be decided based on per day requirement and cycle time


c) No. of pieces per hour will be calculated as


600 x No. of Cavities


---------------------------


Cycle Time


d) Machining cost per hour will be calculated as stated in the FRM/VD/04.


e) Machining Rate per piece will be calculated as follows


Machining cost per hour


-----------------------------


No. of pieces per hour


4..5 Tooling Cost for the component is calculated as follows


a) Mould cost of the component is obtained from the supplier and verified.


b) Tool life in no. of shots has to be finalised with the supplier


c) Tool cost per piece is calculated as


Mould Cost


--------------------------------------------------


Tool life in no. of shots x No. of Cavities


4..6 Other Charges


a) Labour Charges depends upon the size of the component


b) Packing and Forwarding Charges depends upon the size of the component.














c) Over Head & Profit is calculated as follows


(Raw Material Cost per piece + Machining Cost per piece + Tool Cost per piece + Labour charges per piece +packing and forwarding charges) x 0.1


4..7 Component Cost is calculated as follows


Sum of the followings rates


a) Raw Material Cost per piece


b) Machining Rate per piece


c) Tool cost per piece


d) Labour Charges


e) Packing & Forwarding Charges


f) Overheads and Profit.


4.4 Machining Cost


4.4.1 This sheet has to be prepared in the FRM/VD/04 based on the details collected in the FRM/VD/01, FRM/VD/0


4.4. Power Consumption of the machine used for manufacture of the component is calculated as follows


a) Total Electrical Load of the machine should be identified from the Name Plate Details of the machine used for moulding.


b) Rate of Utilisation is taken into account depending upon the effective usage of machine (Normal 70% to 80%)


c) Cost per KWH is the Rate charged per unit consumption of electricity (Standard Electricity Board Charges)


d) Electricity cost per hour is calculated as follows


(Electrical Load in KW) x (Rate of Utilisation in %)


x (Cost per KWH)


---------------------------------------------------------------


100


4.4. Labour Cost


a) Wages per month for a machine operator has to be obtained from the supplier














b) No. of operators per machine required has to be collected


c) Labour cost per hour is calculated as follows


(Wages per month per operator)


x (No. of Operators per machine)


---------------------------------------------


5 x 7


4.4.4 Interest Depreciation


a) Landed cost of the machine has to be obtained from the supplier


b) Interest for the machine has to be calculated as 10% of the landed cost


c) Depreciation for the machine has to be calculated as 10% of the landed cost


d) Other factors(if any) has to be considered.


e) Interest Depreciation per hour is calculated as,


Interest at 10% + Depreciation at 10%


+ Other factors(if any)


---------------------------------------------------


00 x x 7


4.4.5 Total machining cost per hour per machine is calculated as,


Electricity Cost per hour + Labour Cost per hour


+ Interest Depreciation per hour


4.4.6 Total machining cost per hour @ 85% efficiency is calculated as,


Total machining cost per hour


------------------------------------


0.85


4.5 Initial Approval for Product Development


4.5.1 Before Localising every component it has to be get approved by the Engineering Department in the FRM/VD/05 as follows














“The component to be localized will not get obsolete for the next three years”


4.5. Similarly before the component get localized it has to be ensured by the Quality Department in the FRM/VD/06 as follows


“It is the responsibility of quality department to get internal approval from Technical Director and Customer Approval from HMI. If commercial is organizing the drawing where KIC drawing is not available, quality will verify the correctness of the drawing(comparing the KIML drawing part) and approve the component drawing.”


4.6 Supplier Approval for the Rate


4.6.1 After the component ensured by the Engineering and Quality Department for the conditions specified it has to be rate negotiated with the supplier selected and rate has to be finalised on mutual agreement of the KIML and Supplier in the FRM/VD/07.


4.6. Once all commercial and quality aspects has been finalised Letter of Intent or Purchase Order has to be released to commence the work


4.7 Mould Details


4.7.1 After the mould has been made by the supplier the following details of the mould has to be collected and entered in the FRM/VD/08 as follows


a) Size of the mould in all the three dimensions has to be measured


Length (l) x Width (w) x Height (h)


b) Weight of the mould has to be measured


c) No. of cavities for the particular component has to be mentioned.


d) Material used for the mould has to be mentioned


e) Life of the mould in no. of shots has to be noted down.














f) Date of issue of the first sample has to be mentioned


g) Mould Cost with breakup has to be attached


4.8 Approval Process


4.8.1 After completion of the Mould, Trial Samples has to be taken from the mould and samples has to be submitted to the Quality Department along with the Inspection Report.


4.8. If the sample is found to be ok in all the quality aspects Initial Sample Assurance Report for the Item will be prepared and proceeded for the Internal Approval of the Deputy Managing Director.





4.8. Further approval for the indegenised item will be proceeded as stated in the Table 4.8.1


Table 4.8.1


S.No Item Name Approval Authority


Internal KIC Customer


1 Wires


Terminal


Housing


4 Retainers


5 Clip


6 Cap


7 Covers


8 Fuses


Fuse Covers


10 Fuse & Relay Box


11 Protector


1 Relay


1 Seal


14 Grommet


15 Heat Shrink


16 Cotton Pad


17 Vinyl Sheet


18 Bolt


1 Cot Tubes

















S.No Item Name Approval Authority


Internal KIC Customer


0 Diode


1 Binder Cable


Tapes


Vinyl Tubes


4 Labels


5 Soft Tapes


5.0 Document Cross Reference


NIL


6.0 Records


1. Feasibility Study FRM/VD/001


. Capacity Study FRM/VD/00


. Cost Break Up Sheet FRM/VD/00


4. Machining Cost Break Up FRM/VD/004


5. Initial Approval for Product Development-Engineering FRM/VD/005


6. Initial Approval for Product Development-Quality FRM/VD/006


7. Supplier Approval for the Rate FRM/VD/07


8. Mould Details FRM/VD/08


PREPARED BY APPROVED BY


DATE DATE





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