Award for World Class TPM Achievement
Bajaj Auto Limited
Chakan Plant, Pune, India
1. Organization Profile
1.1 Bajaj Group Bajaj group was founded in 1926 by Shri Jamnalal Bajaj, India’s freedom fighter and a strong discipleof Mahatma Gandhi. Jamnalal Bajaj's unflinching commitment to Gandhian values by serving the
public, respect at all costs for his customers and his integrity are the basic tenets that powered the
Bajaj Group since its inception.
 Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a wide range
of industries, spanning automobiles, home appliances, lighting, iron and steel, insurance, travel andfinance.
 For many decades, the Bajaj group was headed by its Chairman Emeritus Shri Rahul Bajaj, a highly
respected businessman, who was also known for his adoption of fair business practices and corporate
governance. Mr. Bajaj was the Chairman of the Board of many companies. He was also elected to theUpper House of the Indian Parliament. Mr. Bajaj was a member and former Chairman of theInternational Business Council of the World Economic Forum, Geneva and a Member of Harvard
Business School's Global Advisory Board. He also spear-headed the CSR initiatives of the Bajaj group.
He was awarded with ‘Padma Bhushan’ award, the third highest civilian award by the Governmentof India.
1.2 Bajaj Auto Limited (BAL) Incorporated in 1945, Bajaj Auto Limited is a flagship company of the Bajaj group. It started sales
and manufacturing of Scooters in India in technical collaboration with Piaggio of Italy andsubsequently started making Scooters and Three-wheelers under its brand after the expiry of theagreement.
 BAL entered in motorcycles segment responding to the changes in customer preference in India.
Initially, BAL developed its motorcycles in technical collaboration with Kawasaki of Japan. Soon, it
set up its own R&D facilities in 2000. Since then, many home-developed and grown brands including
the market leaders like the Pulsar range of motorcycles have been launched by BAL.
 Bajaj Auto is the world's third-largest manufacturer of motorcycles and the second-largest in India. It
is also the world's largest three-wheeler manufacturer. In December 2020, Bajaj Auto crossed amarket capitalization of ₹1 trillion (US$13 billion), making it the world's most valuable twowheeler company.
 Bajaj brand is well-known across several countries in Latin America, Africa, the Middle East, Southand South East Asia. Bajaj Auto Limited is among the FIVE Most Innovative Indian Companies andthe only automotive company featured in the coveted list of Forbes World’s Top 100 Most Innovative
Companies of the Year. (Announced on August 21, 2014 - http://www.forbes.com/companies/bajaj-auto/) Bajaj Auto is India’s 17th most valuable brand, according to the first-ever BrandZ TM Top 50 Most
Valuable Indian Brands ranking (announced on September 19, 2018).
 The growth journey of the company is further continued, under the leadership of our Chairman
Shri Niraj Bajaj and Managing Director Shri Rajiv Bajaj.

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1.3 Product Range
Two-wheeler segment
 BAL has products in various segments of Two-wheelers starting from Entry to the Super Sportsegment. To cater to the demands of domestic and global customers, BAL produces Pulsar, Avenger,
Dominar, KTM and Triumph brand Motorcycles and Chetak and Yulu brands of Electric vehicles.
 Exporting more than 80 countries
 Brand ranges from Entry level to Super
sport segment
 Total 12 brands & 61 Variants

Two-Wheelers
Motorcycles

Urbanite
ChetakHigh CC
Premium
Low Volume

Yulu

Dominar,
KTM,
Triumph,Pulsar 200 RS

Pulsar 150,
Pulsar NS 160,
Pulsar NS200, Pulsar 250,
Avenger, Pulsar N160,
Pulsar N250

Discover 125, Pulsar 125

CT 125
Low CC
Low Cost
High Volume

Boxer, CT 110, Platina 100, Platina 125

Three & Four-wheeler segment (Intracity)
 BAL produces eco-friendly three-wheelers which are world leaders in fuel efficiency & reliability.
BAL is catering to small commercial vehicle market with 4 brands and 30 models of three & four wheelers, offering a vast range of fuels like Petrol, Diesel, CNG & LPG etc. World’s first quadracycle;
Qute was introduced in January 2012. In April 2023 it has also launched an Electric three-wheeler.
 World leader in 3 Wheelers
 Fuel efficient & eco friendly Available in Petrol, CNG, LPG and Diesel
 1st Indian 3-Wheeler Manufacturer with
Alternate Fuel

3-wheeler

Vehicles with multiple
fuel variants
4-wheeler

3-wheeler• RE 2S• Maxima Z Petrol• Maxima C Petrol• Qute Petrol• RE Compact 4S Petrol• Maxima Z CNG• Maxima C CNG• Qute CNG• RE Compact CNG• Maxima Z LPG• Maxima C Diesel• Qute LPG• RE Compact LPG• Maxima Z Diesel• Maxima C Electric• RE Diesel• Maxima X Wide Diesel• RE Electric• Maxima X Wide CNG• Maxima Electric

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1.4 Business
International Presence Bajaj Auto is India’s No.1 motorcycle exporter by a huge margin. Today when consumers buy a Bajaj
motorcycles and three-wheelers, they are buying world-class products that are sold in more than 80
countries. This explains the global acceptance of the Bajaj brand.
 BAL also has a significant presence worldwide, including in many of the developed countries acrossthe globe like the USA, Europe, Japan and Australia etc.
INDIA’S NO.1 MOTORCYCLE EXPORTER
2 OUT OF EVERY 3 BIKES EXPORTED CARRY A ‘BAJAJ’ BADGE

Domestic Presence Bajaj Auto’s dealer network is spread far and wide both in India and across the world, with more than
10000 customer touchpoints. It also has 413 exclusive and state-of-the-art ‘Premium’ showrooms forhigh-end motorcycles.
Domestic Network  1,482 Dealers across India
 413 Premium showrooms for Sports Category 5,669 Service Centres & 3,216 Authorized
Service Outlets

Key Features  Dynamic Impactful
 Interactive
 Showcase of Technology Prowess
 Informative

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1.5 Manufacturing Plants Bajaj Auto has 4 manufacturing plants in India, out of which 3 are in Western India at Pune andAurangabad locations. One plant is at Pantnagar in Northern India. Corporate functions like R&D,
Process Engineering, Machine Tool Division, Sales & Marketing, Materials, HRD & Finance arelocated at Akurdi (Pune).
Pantnagar Plant  Manufacturing of 2-wheelers
 Mass production with low operation cost
Waluj MC Plant  Manufacturing of 2-wheelers
 Caters to the major export needs
Waluj CV Plant  Manufacturing of Commercial Vehicles & parts
Bajaj Auto Ltd, Akurdi, Pune - Corporate Office

Chakan Plant  Manufacturing lab for trials and testing ofvarious new concepts.
 Manufacturing of High-Performance bikes inSports & Super Sports segment

2. BAL Chakan Plant:
 The foundation stone of BAL Chakan Plant was laid in 1998 and operations were started in 1999.
 Chakan Plant was established to fulfill increasing market demand in the Sports & Super Sports
segment. It intends to build its capacity for producing Pulsar brand Motorcycles along with Avenger,
KTM & Dominar brands to cater to global market demands.
 Chakan plant has put millions of vehicles on the road, in India & abroad. Vehicle manufactured at
this plant are also exported to developed countries like Europe, Russia, Japan, USA etc. The ability
to cater to the changing times is achieved as a result of constant efforts to implement the Bajaj policies
of higher quality and continuous improvement in all fields.
 Having tasted the fruits of TPM activities & after successfully challenging the JIPM Award forWorld Class TPM Achievement”, Chakan plant is committed to the next level of TPM activities.
Plant Layout:
Utility# Land area : 792,530 Sq. Mtrs
# Built up area : 152,000 Sq. Mtrs

MachineShop

HRD

EngineAssembly
OfficePaint
Shop# Green Coverage : 74 %# Water Positive Plant

VehicleAssembly
Logistics# Capacity : 4000 Vehicles/Day# Employee Strength : 1738

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2.1 Production Processes An overview of production processes available at the Chakan Plant is given below. This plant isestablished with a compact layout and a unidirectional and streamlined production flow.

Total Vendors : 126

Total Number of Equipment : 720
Vendor Input

Engine Assembly

Machine Shop

Domestic Dispatch

Vehicle Assembly

VendorInput(Semi-finish)

Export Dispatch

Paint Shop
VendorInput(Semi-finish)

2.2 BAL Chakan organization structure
Staffing at BAL Chakan Plant
 Plant organization structure is based on the concept of Lean. This structure helps in collaborative
working, focusing on strategic decision-making in line with the Organization’s Vision and Mission.

Executive Director
Head (Manufacturing)
VP
(MCD)

VP
(Chakan & Akurdi)

VP
(CVD)

VP
(Pantnagar)

VP
(TPM)

VP
(Projects)

Div. Head (Assembly)

Divisional Head (Support Service)

Div. Head (Export & Dispatch)

Divisional Head (Mfg. Engg. - Vehicle & E&T)

Div. Head (Paint Shop)

Divisional Head (Facilities)

Div. Head (Machining)

Divisional Head (Quality Assurance)
Divisional Head (Production Planning & Control)

Dept.
Head

Aluminium Shop
Cell - 1

Cell
Members

Steel Shop

Divisional Head (Planned Maintenance)
Divisional Head (TPM & Systems)

Cell - 2
Cell - 3

Production Function

Support Function

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2.3 Events & Awards
 The various key milestones in Bajaj Auto Chakan's journey are given below.

1998
2005
2006
2008
2009
2014

• Foundation Stone Laid

• ISO 14001 Certification by Bureau Veritas• India Manufacturing Excellence Awards :Super Platinum Award by Frost & Sullivan• Awarded OHSAS 18001 Certificate• India Manufacturing Excellence Awards :Super Platinum Award by Frost & Sullivan• ISO 9001 Certification by Bureau Veritas

2016• 1st Rank for Excellence in Environment, Health and
Safety2017• Productivity Improvement - Gold Award(The Machinist Super Shopfloor Award)

2019• Transition from OHSAS 18001 to ISO 45001

2020• “Water Positive Plant” Award by Government of
Maharashtra

2021• “1 Platinum & 2 Gold" Awards for TPM Circles at
National Level - Organized by CII

2022• “National Award for Excellence in Energy
Management 2022” - Organized by CII

2023• The Festival of Manufacturing Award 2023 “Championof Manufacturing” Sponsored by Ministry of Heavy
Industry (Govt.)
Pagle: 3 of 8
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3. Milestone on the Journey of Manufacturing Excellence
3.1 Background of TPM at Bajaj Auto Ltd•••

Liberalization of the Indian
2-Wheeler industry in mid 80s.
Dramatic change in the Indian
market in the mid-90s.
BAL’s profitability dropped
drastically by 2000.

BAL was a Scooter maker for 40+ years.
• BAL was desperate to make an impact with
its own developed high-quality motorcycles.
• A transition was necessary from age old
Scooter maker to a high-quality, highperformance motorcycle maker.
A strong need tochange BAL’s way
of working

This change had to be,
1. Oriented towards the change of Mindset before the change of Action.
2. With a simple and clear framework that enables collective alignment.
3. With a low gestation period as we were not left with much time.
BAL found TPM’s “bottom up, analytical and investment light” approach as
most appropriate methodology for us and adopted it since 2000.

3.2 TPM Activity
1. At BAL, continuous efforts are taken to make TPM “The Prime Mover towards Excellence” and to
imbibe the TPM philosophy in its work culture. Manufacturing Excellence is the essential corephilosophy behind all the activities internally and with suppliers.
2. TPM proved its effectiveness and resulted in good improvements in all the work areas (PQCDSME)
with an approach of minimal or no investment.
3. After successfully challenging Excellence in TPM at all Plants, BAL decided to go “Deeply” and“Widely” in terms of the depth and scope of its TPM activities, to improve on its own losses andinterface losses, with the involvement of interface functions such as Engineering, Research &Development (R&D), Component Development, Purchase, Sales & Service, IB, Finance, MIS (IT)and HR.
4. BAL has widened its TPM activity across the supply chain. Now our inbound supply chain partners(Tier-I & Tier-II vendors) and outbound supply chain partners (dealers and distributors) are also
practicing TPM.
5. For strengthening & sustaining standard TPM Pillar activity across the supply chain, BAL has adopted
the “Bajaj Model for TPM” with Deepening, Widening and Evolving aspects. To meet thecompany’s vision; strategic goals and objectives are defined. For the achievement of these strategic
goals and objectives, BAL has evolved TPM activity with a linkage between various resources andmanagement objectives. This has created a Win-Win situation amongst all stakeholders.
6. To sustain the achievements made and improve these achievements further, BAL has established the‘Bajaj Production System’ (BPS). The systems & standards of BPS are meticulously followed by all.

Page: 8 of 11

Bajaj Model for TPM
TPM

Widening

Deepening

Evolving

Bajaj Production System (BPS)
Aim : Better Flow with More Better Quality

3.3 Bajaj Production System
 We follow the Bajaj Production System, intending to ensure Better Flow with Better Quality. The
target is to produce all products ok, as per demand with minimum resources. In doing so, we ensure
joy at the workplace through Yutori practices. Feedback on the activities under Deepening, Widening& Evolving TPM is given to BPS regularly.

BETTER FLOW WITH MORE BETTER QUALITY

Continuous Improvement

Q

C

D

All
Produced
Parts areOK

ProducewhenneededMakingwith
Minimum
Resources

Yutori – Joy at Workplace
5S and Visual Control
Innovation

Perfection

Speed

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3.4 TPM Journey of Manufacturing Excellence: Since the decision to adopt TPM as a company policy for manufacturing excellence, BAL’s TPM
slogan has been “TPM - The Prime Mover towards Excellence”. The table given below gives key
milestones on this Journey of Excellence, achieved so far.

2023 : Challenging for “Award forWorld Class TPM Achievement”

Advanced Special Award for
TPM Achievement

Part - III

2019 : “Advanced Special Award for
TPM Achievement”
2015 : “Special Award for TPM
Achievement”
2014 : First visit of JMAC consultant~ “Yamazaki San”

Special Award for
TPM Achievement

Part - II2012 : “Award for Excellence inConsistent TPM Commitment”
Award for Excellence inConsistent TPM
Commitment

2006 : “TPM Excellence Award”

2004 : TPM Kick off at Chakan

TPM Excellence Award

2003-04: Manager Model Cell Activities

Part - I

2003-04 : TPM Awareness Training

2003 : Declaration to introduce TPM

TPM Kick off

2003 : First visit of JIPMs consultant ~“Yamaguchi San”

3.5 Support given for the growth of TPM:
 Around 73 companies have visited to BAL for understanding TPM practices in the last 3 Years.
 BAL has been Platinum sponsor for TPM National conferences for the last 5 years.
 Assisting CII (TPM Club) in conducting health check audits by nominating our TPM experts.
 Five “Know how” manuals published & given free of cost to CII (TPM Club) for circulation to Indian
Auto Industries
 Facilitation for CII & ACMA Delegation visit to our Plants as part of the TPM Learning Mission
 “BAL-TPM Award” for 132 vendors and “BAL Q-Awards” for 366 vendors, reflect our efforts for
TPM practice and recognition across the supply chain.
Page: 9 of 11

4. Benefits Achieved
4.1 Tangible business results
 BAL as a company embarked on the journey of Excellence through TPM since 2000 under the guidanceof Mr. Sueo Yamaguchi from JIPM and later by Mr. Yoshio Yamazaki from JMAC.
 Table given below gives tangible business results achieved for major business parameters.

Category

Index(Calculation Formula)

Production Volume
P

Q
C
D

S

Production/Hour
Productivity (Output/Man)OLE(or Overall Plant Efficiency)
Matured warranty cost
(2 Years - Pulsar 150)
In process DefectConversion Cost
Lead time(Fuel Tank)
Delivery Performance:
Adherence to Sales Plan
Major Accident(Serious Accident Index)
Minor Accident

M

Number of Kaizen/man/ year

E

Resource Generation Solar &Wind
Resource Conservation Power
Paint
Control of
Pollutants
SludgeCO2
CarbonEmission
Neutrality
Reduction

Unit

Benchmark(Nov’03)

Actual Status(Dec’23)

Total Motorcycles(Number in Million)

0.35

0.90

(12 months)(9 months)

Number
Vehicle/Man/Day

63
1.50

450
4.55

%

87.00

94.95

Rs/Vehicle

2102

34

Number of Phenomena
Rs/Vehicle

206
1067

2
468

Hours

17.36

6.70

%

100%

100%

Number00

Number70

Number

1.0

15.1

M Kwh

--

19.3

Lacs Kwh--

7.3

gm/Vehicle

530

87

Kg/Vehicle

29.36

9.2

4.2 Intangible Benefits
Understanding TPM in right spirit and practicing it day-to-day for over 20 years, has brought significant
changes in work culture and flexibility in all the manufacturing plants. Some of the key benefits are like: Change in Attitude, high spirit of employees and self-esteem
 System Orientation
 Analytical Approach Flexibility
 Excellent Teamwork

Page: 10 of 11

5. Key to our Manufacturing Excellence Productivity: The company has set itself a vision to be amongst the leaders in motorcycles and small
commercial vehicle business. To meet this vision, BAL will enhance its capacity TPM way bymaximizing the efficiency (OLE) of existing resources through focused improvement themes like
Lean Operations, before deciding on a new investment.
 Quality: With a focus on Customer Delight, Quality would continue to be customer-defined andcustomer-centric parameters for BAL. Its products would be aimed at the highest performance andleast cost of ownership. Though World Class Quality theme, we are focusing on Customer Satisfaction
and Customer Delight. In line with that, the BAL Chakan plant has been certified for ISO 9001:2015
for Quality Management Systems.
 Cost: BAL has adopted Life Cycle Costing (LCC) as a base for all its investments in the future andhas aimed to create a benchmark for the industry. As a result, it has an aim to maintain its leadershipof the highest EBIDTA in the industry.
 Delivery: We are focusing on improvement in material flow and supply chain agility which hassignificantly benefited us to meet the demand of various markets (Domestic + Export).
Implementation of Small Lot Production helps us to achieve optimum inventory levels and minimum
lead time.
 Safety & Health: BAL has adopted the concept of “Yutori”, which means “Joy at the Workplace”.
Three areas under Yutori, which are Body (Physical Happiness), Mind (Mental Happiness) and Soul
(Spiritual well-being) focus on fostering a more positive and fulfilling professional experience for all
employees. BAL Chakan has been certified for ISO 45001 for its excellent occupational health andsafety practices.
 Morale: With the active participation and involvement of all employees, BAL has been able toinculcate a TPM culture for excellence and continuous improvements across all plants. BAL has beendeveloping and retaining a diverse pool of talented and motivated employees. The Company has also
taken many active steps to engage women’s talent, contributing to enhancing women's workforce
participation in the economy.
 Environment: Environment protection, including pollution prevention, is being achieved at BAL byminimizing the generation of waste and conserving natural resources through the adoption of better& and cleaner technology. BAL Chakan plant has been certified for ISO 14001 for its environment.
We endeavour to make TPM as The Prime Mover towards Excellence and imbibe completely the
TPM philosophy in our entire work culture. As ‘Manufacturing Excellence’ is the essential core
process behind all our activities, both in-house and at vendors, we will completely focus on leveraging
these efforts to achieve business needs & win-win situation with our stakeholders.
Page: 11 of 11

TPM Award Assessment Achievement Sheet
Company & Plant
Name

Bajaj Auto Ltd. : Chakan Plant

TPM Slogan

Category

S

S

P
P
P
P
Q

Q

C
D
D

"TPM - The Prime Mover towards Excellence"

Index( Calculation Formula)

Number of workrelated accidents
requiring days off
work
Number of workrelated accidents not
requiring days off
work
Productivity for main
products
OLE(or Overall Plant
Efficiency)
Number of tags raised(No of equipments)
Number of
breakdowns
Number of customer
complaints
Inlinedefectrate

Scrap
ReworkCost Index :Manufacturing Cost
excluding Material
Cost
Lead time in hours(Fuel Tank)
Delivery
performance :Adherence to Sales
Plan

Unit

Kick off
TPM
started(BenchMark:
Nov’03)

ActualStatusTPM
Excellence

Actual Status
Consistent in
TPM
Commitment

Actual status
SpecialAward for
TPM
Achievement

Cases/
Annually000Cases/
Annually

7

6

Vehicle/
Man

1.50

%
NumberActualStatusAdvanced
SpecialAward

ActualStatus(Dec’23)

Target2024(Mar’24)

0

0

0

0

0

0

0

0

0

1.92

2.34

3.70

4.20

4.55

4.60

87.00

89.00

93.54

94.56

94.86

94.95

>95

741
(188)

18076
(188)

23054
(289)

27844
(426)

29072
(458)

34382
(720)

-

101

27

1

0.58

0.42

0.17

0

64

38

48

22

8

2

0

-

23.71
(2009-10)

10.8

9.0

8.1

4.2

0

PPM

14425

9841

4220

3920

2330

1820

0

Rs/
Vehicle

1067

714

534

564

497

468

465

Hours

17.36

13.36

7.33

7.03

6.88

6.70

< 6.5

%

100

100

100

100

100

100

100

0.40

0.29

0

0

0

0

0

412

14982

38900

61817

103704142392

-

29.36

25.06

19.34

15.73

11.5

9.2

9

Breakdowns/monthly
Number of
Phenomena
Rs/
VehicleS

Safety index

M

Number of Employee
Suggestions

Accidents
per 100,000
operatorhours
Cumulative
NumberE

Carbon Neutrality

Kg/ Vehicle

Others

1. Do you have a program where all employees can participate in TPM?
All BAL plants have active TPM circles. BAL Chakan has 94 nos. of TPM circles. These circles meet every fortnight as per
the schedule. All suggestions/kaizens by circles are recorded and responded to by the Head of the departments.
2. Do you have a program allowing employees to be recognized their achievements?
All employees participate in Monthly and Quarterly Kaizen Competitions held at the Plant level where they are suitably
rewarded. Similarly, the best kaizens from all Plants participate in the Half Yearly Companywide Kaizen Competition where
the top 5 are given the Sueo Yamaguchi Trophy. Once a year, the top 3 Kaizens of the year from all Plants participate in the
Kaizen Competition for MD’s trophy.
3. Are top management involved in the audit/verification of completion of TPM pillar steps?
Each JH step is declared pass after the audit by the concerned Plant Head. Similarly, each Pillar review is conducted monthly
by Plant Head and necessary guidance is given by him. We also carry out Inter-Plant audits for sustenance and improvements.
4. Are all pillar activity boards displayed and reviewed by top management?
All pillar activity boards are displayed on the shop floor and are reviewed every month by the Plant Head and TPM Secretariat.
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