Application of Frugal Approach For Productivity Improvement - A Case Study of Mahindra and Mahindra LTD
Application of Frugal Approach For Productivity Improvement - A Case Study of Mahindra and Mahindra LTD
Application of Frugal Approach For Productivity Improvement - A Case Study of Mahindra and Mahindra LTD
Volume 13, Issue 7, July 2022, pp. 50-68. Article ID: IJMET_13_07_005
Available online at https://iaeme.com/Home/issue/IJMET?Volume=13&Issue=7
ISSN Print: 0976-6340 and ISSN Online: 0976-6359
© IAEME Publication
ABSTRACT
Manufacturing industries have witnessed an outburst in productivity. For
productivity improvement manufacturing industries are taking various initiatives by
using lean tools and techniques. However, in different manufacturing industries, frugal
approach is applied in product design and services as a tool for improvement. Frugal
approach contributed to prove less is more and seems indirectly contributing to improve
productivity. Hence, there is need to understand status of frugal approach application
in manufacturing industries. All manufacturing industries are trying hard and putting
continuous efforts for competitive existence. For productivity improvements,
manufacturing industries are coming up with different effective and efficient solutions
in manufacturing processes and operations. To overcome current challenges,
manufacturing industries have started using frugal approach in product design and
services. For this study, methodology adopted with both primary and secondary sources
of data. For primary source interview and observation technique is used and for
secondary source review has done based on available literatures in website, printed
magazines, manual etc. An attempt has made for understanding application of frugal
approach with the study of manufacturing industry project. Manufacturing industry
selected for this project study is Mahindra and Mahindra Ltd. This paper will help
researcher to find the connections between the two concepts productivity improvement
and frugal approach. This paper will help to understand significance of frugal approach
for productivity improvement in manufacturing industry. This will also help to
understand current scenario of frugal approach in manufacturing industry. In
manufacturing industries various process are involved to deliver the final product. In
the process of converting input in to output through manufacturing process productivity
plays very critical role. Hence this study will help to evolve status of frugal approach
in productivity improvement programme.
The notion of frugal can be viewed as an approach towards productivity
improvement in manufacturing industries.
Keywords: Productivity Improvement, Lean manufacturing Tools and Frugal
Approach.
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Application of Frugal Approach for Productivity Improvement - A Case Study of Mahindra and
Mahindra Ltd
Cite this Article: Ritesh Jain and A.M. Rawani, Application of Frugal Approach for
Productivity Improvement - A Case Study of Mahindra and Mahindra Ltd, International
Journal of Mechanical Engineering and Technology (IJMET), 13(7), 2022, pp. 50-68.
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1. INTRODUCTION
Frugal approach in product design and services has created big impact. Frugal approach is
predominantly applied or illustrate as an example for product design and services
improvements. This paper is an attempt to understand current state of application of frugal
approach for productivity improvement in manufacturing industry. To understand this,
manufacturing industry project has selected. Tractor manufacturing industry Mahindra &
Mahindra ltd industrial project is discussed for productivity improvement and use of frugal
approach for same.
Productivity is the combination of efficiency and effectiveness both. Efficiency is important
term but stand alone cannot be justified or enough to certify process is productive. Both
efficiency and effectiveness have to be delivery hand in hand to have more productive process.
At present manufacturing industries are facing challenges like low market demand and un-
predictable business forecasts. Volatile market scenarios and products have a very small life
cycle. It indicates that the manufacturing industry has only one way forward and has to go with
the adaption of frequent change in production plans, on-time delivery, cost competitiveness,
zero defects and the manufacturing of customer asked variants.
In the journey of manufacturing industries, the proportion of output to the input resources
is becoming very competitive. One of the key performance indexes for success is management
in less resources. Resource availability and its meaning full conversion is the key factor
associated with manufacturing industries. To get the answer to this challenging situation many
researchers are mainly focused on finding out different productivity improvement techniques
in manufacturing industries. In this paper, manufacturing industrial project has selected for
study to understand application of frugal approach for productivity improvement. In this paper
discuss about the introduction of productivity improvement and its techniques in the
manufacturing industry. And discuss about use of frugal approach in the manufacturing industry
to counter present industry challenges.
Tools which are popular as an enabler for productivity improvement are lean tools. All
manufacturing industries are aggressively utilising these tools. These tools s importance has
been acknowledged among the industries. The ultimate purpose to adopt lean tools is to make
manufacturing processes and operations effective and efficient. Productivity improvement lean
tools which are popularly used by manufacturing industries are 5S , Live Display / Andon ,
Bottleneck operation Analysis , Uninterrupted or continuous Flow, Actual place of shop floor,
Heijunka (Production Level Scheduling), Hoshin Kanri (Policy Deployment), Jidoka
(Autonomation), Just-In-Time (JIT), Kaizen (Continuous Improvement), Kanban, Key
Performance Indicator (KPI), Muda (Waste), Overall Equipment Effectiveness (OEE), PDCA
(Plan, Do, Check, Act), Poka-Yoke (No fault forward), Poka-Yoke (No fault forward), Single
Minute Exchange of Die (SMED), Prominent Losses, Goal with SMART Approach,
Standardization, Takt Time, Total Productive Maintenance (TPM), Value Stream Mapping,
Visual Management etc. Productivity improvement in manufacturing industry is very important
aspect. As the days are passes, the need for productivity improvement increases for producing
the right product with the right process and makes it an integral part of continuous business
systems and strategies (Hemanand, K., Amuthuselvan, D., Raja, S. C., & Sundararaja, G.,
2012). Prominently, it becomes very important to have efficient and effective productivity
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Ritesh Jain and A.M. Rawani
1.2. Methodology
This paper is divided in two section and for both section different methodology is adopted. First
section of this paper presents literature review about frugal approach in productivity
improvement. This paper will help researcher to understand use of frugal approach for
productivity improvement. In second section of this paper an attempt has made for
understanding application of frugal approach with the study of manufacturing industry case
study. Manufacturing industry selected for this study is Mahindra and Mahindra Ltd.
Methodology of both sections are shown in below table no 1.
Table 1
Chapter
Sr. No. Study for Methodology
Section
Literature review with primary and secondary source
1 First
of data
Application of Frugal
Semi-structured interviews and observation
Approach for Productivity
technique
2 Improvement Second
And
Industry case study based on industrial visit
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Application of Frugal Approach for Productivity Improvement - A Case Study of Mahindra and
Mahindra Ltd
2. LITERATURE REVIEW
2.1. Frugal Approach
Birth to the concept of frugal approach given by Mr. Carlos Ghosn in 2006. He was a Chairman
and CEO in Renault-Nissan Alliance. With the application of frugal he has succeeded in
delivering great results. Achieved results are a cost-effective and under highly resource
constraints environment. (Soni and Krishnan, 2014). One of the first definitions was introduced
by the Economist in 2010: “Frugal products need to be tough and easy to use. Frugal approach
is not just about redesigning products, it involves rethinking entire production processes and
business models” (Soni and Krishnan,2014). According to the dictionary, the word “frugal”
means “economical in use, or spending”, “requiring little expense or few resources”, but also
“living without waste”. The real challenge for frugal approach is to introduce something new
or different while being sparing with resources. The concept of frugal approach is initially
introduced in emerging markets. This has been happened for the necessity of satisfying the
needs of Bottom of the Pyramid (BoP) consumers. (Radjou et al., 2012; Prahalad, 2005).
Similarly, Soni and Krishnan (2014) pointed out that “a frugal mindset would be encouraged
when an individual or a firm struggling in a resource-scarce environment”. It turns out that
frugal is often considered to be an approach (Prabhu and Jain, 2015; Brem and Wolfram, 2014)
or a mindset (Soni and Krishnan, 2014) rather than a specific technique for improvement.
Moreover, a frugal approach can be adopted to develop low-cost solutions that provide product
to resource-constrained customers with the same functionalities but at lower costs (Zeschky et
al., 2014). Also, such an approach can develop good enough solutions that include
functionalities and features designed to meet a range of resource constraints beyond capital
constraints. Thus, products and services are adapted or reengineered to fit the specific
requirements of low-income markets (Zeschky et al., 2014; Srivastava, 2015).
Frugal approach has attracted increasing attention due to emerging countries are gaining
more ground on global economy. An incremental number of firms have penetrated in emerging
markets through frugal products and services. The core characteristics of frugal approach, such
as focusing on the fundamental needs, sparing in the use of resources, and eliminating non-
essential functions. This help to simplify design and make products or services affordable for
consumers at the bottom of the pyramid. This approach has enabled many firms to re-think and
re-design their products or services. This approach has helped to address unsatisfied essential
needs in the emerging markets (Panda, R, 2014).
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Ritesh Jain and A.M. Rawani
different definitions of frugal approach used in scientific literature, it is harder to discuss the
concept in an academic way (M.J. Mudde, 2016).
The definitions contain quite a different scope, for example some state that frugal approach
only relates to a kind of customer group and others relate frugal approach to specific
characteristics of a product.
With the approach of reduction for the use of resources in manufacturing during production.
And by leveraging this approach in new ways, frugal approach results in productive low-cost
operations and services. Successful frugal approach is not only about low cost but getting much
more with much less by creating alternative and can be implement at bigger platform. Frugal
concept is shown in below figure no -01
Low Cost
Constraint Value
resources Creation
Frugal
Basic
Requirement Simplicity
Game
Sustainable
Changer
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Application of Frugal Approach for Productivity Improvement - A Case Study of Mahindra and
Mahindra Ltd
division) located at Nagpur, Maharashtra India. By actual visiting to the Mahindra plant study
has carried out to understand application of frugal approach. The Mahindra Group is an USD
19 billion company. Mahindra group companies are dynamically evolved its business model to
leverage the emerging opportunities in market. Mainly targeted opportunities which are
economy as well as evolving customer needs. Mahindra group has started journey with steel
industry and now having stablished 10 sectors.
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Ritesh Jain and A.M. Rawani
offering over 20 models including new generation multi-utility vehicles like the Scorpio and
the Bolero. The company is a market leader in the Utility Vehicle segment. Mahindra &
Mahindra is the fourth-largest tractor company in the world. It is also the largest manufacturer
of tractors in India with sustained market leadership of around 23 years. It designs, develops,
manufactures, and markets tractors as well as farm implements. The Sector has also found
significant success in the international market. Mahindra (China) Tractor Company Limited
manufactures tractors for the growing Chinese market and is a hub for tractor exports to the
USA and other western nations. Mahindra & Mahindra has a 100% subsidiary, Mahindra USA,
where it assembles 14 products for the American market. 'Mahindra' tractor has come to be
recognized as a powerful symbol of productivity and performance.
Over the years, the Mahindra has transformed itself into a group that has a leadership
position in all the sectors it operates in and has a growing global footprint. Forbes has ranked
the Mahindra Group in its Top 200 list of the World’s Most Reputable Companies and in the
Top 10 list of Most Reputable Indian companies.
Table 2
List of products Services (Sector wise)
Sr. No. Product Sector
1 3 Wheelers Automotive Sector - Domestic
2 Agriculture inputs and services Mahindra Agribusiness
3 Ash Handling Equipment’s for Mahindra AshTech
6 Composites Mahindra Composites
7 Corporate People Movement Mahindra Logistics
8 Dealership Management Mahindra Logisoft
9 Defence Vehicles Mahindra Defence Systems
10 Development of Infrastructure Projects Mahindra Infrastructure Developers
12 Engineering consultancy Mahindra Acres Consulting Engineers
13 Engineering Services Mahindra Engineering
14 Engines Farm Equipment Sector - Domestic
15 Facility Management Mahindra Logisoft
16 Farm Implements Farm Equipment Sector - Domestic
17 Ferro Alloys and Metal Scrap Mahindra Intertrade
18 Forgings Mahindra Forgings
19 Gears Mahindra Gears
20 Information Security Mahindra Special Services Group
23 Insurance and Risk Mahindra Insurance Brokers
26 Integrated Business Cities Mahindra World City
27 LCVs Mahindra International
28 Lifetime holidays Mahindra Holidays & Resorts
29 Living Spaces and Mahindra Gesco
32 Loans and Mutual Fund Distribution Mahindra Finance
34 Pik – Ups Automotive Sector - Domestic
35 Service Centre for Automotive Mahindra Steel Service Centre
41 Sourcing of Auto Components Mahindra Sourcing
42 Stampings and Steel Mahindra Steel Products
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Application of Frugal Approach for Productivity Improvement - A Case Study of Mahindra and
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per person. i.e. @ 100% improvement. Below different steps are used to identified bottleneck
operations and solutions to improve productivity.
Table 3
For productivity improvement following
systematic approach is followed at machine shop. Carried out for
Step for productivity Improvement
Layout study
VSM study Reducing manual activity and part movement
Why – Why analysis
Cycle time analysis Operation no.50 (Pad milling on CNC machine).
First step taken understanding of exiting machine shop layout.
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Application of Frugal Approach for Productivity Improvement - A Case Study of Mahindra and
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OIB pad milling on VA50 machine and VTC machine is emerged as an area of concern for
the capacity improvement. And it attracted focus of team to work upon.
Table 4
Operations Problem Solution Implemented
Operation (05 A), Pad milling
More Cycle time Capacity improved by reducing cycle time
operation VTC mc
Operation (15), Drilling Operation Process changed and M/c and fixture aligned
More Cycle time
(RD m/c) with conveyor for single piece flow.
Operation (30), Drilling Operation Tumbling unit introduced for tilting part in
More Cycle time
(RD m/c) 180°
Operation (40), Manual Cleaning More Cycle Process changed and dust sucking unit
Operation time installed.
Pad milling operation on VA50
More Cycle time Machine Eliminated and removed from line
machine
More Setting
Quality Issue – Bore size variation Tool Design Changed
time
Based on the above study machine shop team at Mahindra and Mahindra has implemented
solution one by one to countermeasure the low productivity issue.
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Solution Implemented
To reduce the OIB pad operation actions are carried out in terms tool design change and
combination tolling has applied like earlier drill and chamfer was two different tools now drill
with chamfer has implemented. Similarly, in milling cutter number of cutting edges are
increased to reduce operation time.
Table 5
Before After
Activity
Sec Sec
Drilling operation 60 40
Chamfering operation 40 0
Tapping operation 80 70
Milling operation 120 100
Before After
Activity
min min
Total Time 5.05 3.5
Capacity 250 370
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Application of Frugal Approach for Productivity Improvement - A Case Study of Mahindra and
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After taking action cycle time reduce from 5.05 min to 3.5 min and machine productivity
improved from 250 Nos. of parts to 370 Nos. of parts.
Solution Implemented
Before Pallet Bar and Guide bar need to put before reaming operation and with the alignment
of the jig plate operation needs to carry out. Resulting into high fatigue to operator.
On improvement part after Fixture developed in such a way that no need to put guide bar
and part can be load just by sliding on fixture. Improved ergonomics and operator fatigue
reduced appreciably. Part handling time eliminated i.e. 2.0 min.
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Figure 9 Image showing before and after improvement to reduce cycle time at operation 30 Manual
part tilting is required after operation – Resulting to more cycle time and use of hoist
Solution Implemented
Automated part tilting arrangement done this resulted into less cycle time and use of hoist
eliminated
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Application of Frugal Approach for Productivity Improvement - A Case Study of Mahindra and
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Figure 10 Showing before and after condition for cleaning operation elimination.
Before OIB pad milling operation is at the end of line – Resulting to heavy chip generation
Solution Implemented
After OIB pad milling operation is set at the start of line – Component is free from chips.
Overall Result of productivity improvement project done machine Shop:
Overall result of case study for improvement of productivity at machine shop is illustrated
in terms of graph and PQCDSM parameters i.e. Productivity, Quality, Cost, delivery, Safety
and Morale. Below is the graph showing operation wise increase in productivity YOY after
implementation of project.
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Table 6
Respondents Profile
No of
Category Profile
Respondents
Mahindra & Mahindra Ltd
Industrial Expert DGM and Above 2
Executives
Mahindra & Mahindra Ltd
Industrial Expert Manager Shop Floor 3
Executives
Researchers - Industrial Engineering 2
Experts National Productivity Council –
1
Executives
Industrial Consultant for Productivity
Consultant 1
Improvement
Total 09
Questions are asked in semi-structure way to the respondent. Below is the list of questions
asked to experts in Mahindra Nagpur Plant. Details are shown in below appendix A
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Application of Frugal Approach for Productivity Improvement - A Case Study of Mahindra and
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6. CONCLUSIONS
For productivity improvement number of tools are available in literature and tools are being
practiced by the industrial professionals. While going through the productivity improvement
project at machine shop of Mahindra and Mahindra ltd. It is very prominent that productivity
improvement has done and achieved the targeted results. The idea behind selecting machine
shop project was very clear to go through project which carried out in conditions where frugal
approach supposed to be encouraged. Machine shop productivity at Mahindra plant was
planned to increase to cater temporary market demand. And this demand was not supposed to
be remain constant as seems very uncertain. Capital investment was not wise decision to ramp
up production and if not done there was clear loss of market share. Mahindra plant management
challenged the status quo and decided to go for productivity improvement without investment
and by using available lean tools. In this project, it has clearly come out that, machine shop
productivity improvement has done with available lean tools and there are no standard tools are
available to improve productivity with frugal approach. Hence there is need to develop a
framework to improve productivity with frugal approach. This study focused on understanding
the importance of frugal approach to improve productivity in manufacturing industries.
Industrial project case study has discussed by interview & observation technique and actual
visiting to identified manufacturing industry named Mahindra and Mahindra Ltd, Farm division
located at Nagpur, Maharashtra India. Available literature showing frugal approach is adopted
in many areas like product design to encashed grass root customer. While actual understanding
one of case study by visiting to industry premises itself. It is revealing that at process
improvement level to improve productivity lean tools are very much popular and manufacturing
industries are using it in a systematic way. As per this study, it has reveals that as such no use
of frugal concept available for productivity improvement in Mahindra Nagpur plant.
APPENDIX-A
Questionnaire to understand application of frugal approach to improve productivity in
Mahindra and Mahindra ltd. Nagpur Plant
This study is a part of large research and aims to learn about current scenario of
manufacturing industries to improve productivity with the frugal approach from an industry
expert Any published result will not identify the responses of any specific individual or
organization.
Questions to understand application of frugal approach for productivity improvement in
SN
Mahindra and Mahindra ltd. Nagpur Plant
A Is there any frugal concept used in productivity improving initiatives?
B How productivity improvement is being carried out in resource constrained condition?
C What are present practices for productivity improvement?
D What is the structural approach available for productivity improvement?
E Is there any training and awareness provided in plant on frugal?
F Is other Mahindra plant using frugal concept?
G In any context have you heard about frugal application?
H Is frugal is applied in other manufacturing group nearby this plant?
I Is industrial engineering in-charge being aware about frugal concept?
J Is Mahindra is working on any type of frugal product?
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