How long should my light bulbs last?

TCP adheres to an industry standard for rating light bulb life called rated life. All of our packaging shows the average rated life of that specific bulb. All light bulbs are tested to determine what their rated life will be. The time that half of the test sample fails is considered rated life. By definition, some lamps will fail before their rated life and some will operate beyond their rated life. Keep in mind that different styles of light bulbs can have different rated life. Using a bulb in an incorrect application can also have an impact on the life of the bulb. Application information can be found on the bulb packaging.

What should I do if I have a defective light bulb?

All of TCPs products follow strict quality guidelines. If you feel that you have purchased a defective bulb, you can return the bulb to the retailer that you have purchased it from and they will be able to provide you with an immediate solution. If you have a problem returning the bulb to the retailer where it was purchased you can contact us here. Why do my bulbs seem to burn out quickly? There are a variety of reasons why your light bulb could be burning out prematurely. If you notice that a specific light fixture consistently has light bulbs burning out in it, it could be the fixture. Light fixtures can wear out over time and can cause light bulbs to prematurely fail. Also, make sure you are using the correct bulb for your application; verify the wattage, bulb shape and recommendations found on the packaging.

What is a CFL?
CFL stands for compact fluorescent lamp. It is a small fluorescent light bulb that uses 75% less energy than a traditional incandescent bulb and can be screwed into a regular light sockets.

How does a CFL work?

Fluorescent light bulbs are more energy-efficient than regular bulbs because of the different method they use to produce light. Regular, incandescent light bulbs produce light by heating a filament inside the bulb. The heat makes the filament white-hot, producing the light that you see. This method very wasteful as it uses a lot of energy to heat up the filament that produces light. Fluorescent bulbs contain a gas that produces invisible ultraviolet light (UV) when the gas is excited by electricity. The UV light hits the white coating inside the fluorescent bulb and the coating changes it into light you can see. Because fluorescent bulbs don't use heat to create light, they are far more energy-efficient.

What's the difference between a CFL and a fluorescent bulb?

The size of the bulb is the main difference between these two types of bulbs.

Where should I use a CFL style bulb?

Use CFLs anyplace a traditional incandescent light bulb is used. However, the most practical use for a compact fluorescent bulb is in a lamp or fixtures turned on for at least three hours at a time. Hard to reach fixtures are also good candidates, since a CFL does not have to be changed as often as an incandescent bulb.

What wattage should I buy?

When buying a compact fluorescent light bulb, choose a wattage that's about one-fourth of what you usually buy. The table below shows some typical wattage conversions for CFLs:

15-watt incandescent = 3-watt compact fluorescent 40-watt incandescent = 9-watt compact fluorescent 60-watt incandescent = 14-watt compact fluorescent 75-watt incandescent = 19-watt compact fluorescent 100-watt incandescent = 23-watt compact fluorescent 120-watt incandescent = 30-watt compact fluorescent

How do I pick a bulb that produces the same amount of light?

New federal standards are making it easier for you to figure how if the light bulb you are picking will produce the same amount of light that you are used to. Now, all lighting packaging will display the amount of lumens that a bulb will produce.

Whats a Lumen?
A lumen is a measurement of the amount of light that is contained in a certain area. The technical definition of a lumen is one candela multiplied by one steradian. A much simpler definition of a lumen would be that one lumen is equivalent to the amount of light put out by one birthday candle when you are standing one foot away from it. If a light bulb puts out 100 lumens, imagine standing one foot away from a cake with one hundred birthday candles on it. Lumens are more accurate way of measuring the amount of light a particular bulb is putting out, because lumens are a direct measurement of light output. Wattage, even though it is what people have become accustomed to seeing on packaging and measuring how much light they are seeing, it is not really an accurate way to measure light output. Just because a light bulb uses a particular amount of energy to run, does not mean that it directly correlates with the amount of light that is put out.

Can I use a CFL or an LED with a dimmer switch?

In order for a CFL to work on a dimmer switch you must purchase a CFL that is made to work with dimmers. All of TCPs dimmable CFLs say that they are dimmable on the packaging. Not all dimmable CFLs are equal, the bulbs packaging should indicate how well the bulb dims and if it requires a special type of dimmer to function properly. All of TCPs LEDs are fully dimmable.

Can I use a CFL with my 3-way lamp?

Yes a regular CFL can be used with a 3-way lamp and not have it damage the bulb. The bulb will operate on the middle setting. However you must purchase a special 3-way CFL in order to achieve the 3 different levels of brightness. TCP makes a handful of 3-way CFLs and all of our 3-way bulbs are clearly marked on their packaging.

Why does my CFL flicker or appear dim when I first turn it on?
Early CFLs flickered when they were turned on because it took a few seconds for the ballast to produce enough electricity to excite the gas inside the bulb. With technological advances, CFLs now do not produce a significant flicker. Some CFLs require a short warm-up period before they reach their full brightness. This could be why they appear to be a little dim with they are first turned on and TCP CFLs should take less than a minute to reach full brightness. TCPs TruStart CFL will give you full brightness in a snap and TCPs Instabright technology has a run-up time shorter than most other bulbs in the marketplace.

Can I use a CFL in applications where I will be turning the lights on/off frequently?
Some CFLs cannot handle frequent on/ off cycles and these products may have a shorter life if frequently turned on and off. However, There are certain CFLs that have been designed to handle frequent on/ off cycles, such as TCPs TruStart.

Can I use a compact fluorescent light bulb in an enclosed light fixture?

Yes, you can use a CFLs that are 23 watts or below in a fully enclosed fixture.

Can I use a CFL bulb outside?

Many CFLs can be used outdoors, as long as they are in an enclosed fixture. Make sure to verify on the package if the bulb says that it can be used outdoors and verify the operating temperature for the area where the product will be used.

What about air temperature & CFLs?

Compact fluorescent light bulbs may generally be used where the air temperature is between 20 degrees Fahrenheit and 140 degrees Fahrenheit. Above 140 degrees, there may be reduced light output and premature ballast failure. CFLs have a harder time starting below 32 degrees, reducing the brightness.

Can I use a CFL in any position?

CFLs can be used in any operating position unless there is text printed on the lamp and/ or packaging that indicates a required operating position.

Can CFLs create interference with electronic equipment?

This product may cause interference with radios, cordless phones, televisions and remote controls. If interference occurs, move this product away from the device and plug into a different outlet.

Can I use a compact fluorescent light bulb with an electronic timer or photocell (AKA electric eye)?
Electronic timers tend to have a small amount of electricity running through them even though a lamp is shut off. The lamp continually tries to turn itself on, which shortens the CFL life.

Do CFLs give off Ultraviolet (UV) light?

CFLs give off a minimal amount of UV light. It does not pose a hazard.

Should I be concerned about using CFLs in my home?

CFLs are safe to use in your home. No mercury is released when the bulbs are in use and they pose no danger to you or your family when used properly.

How do I safely dispose of a CFL when it burns out?

It is best to recycle your CFL. Many local hardware stores and communities have different recycling programs for CFLs. That way the bulbs will then be managed responsibly by an environmental management company who will coordinate CFL packaging, transportation and recycling to maximize safety and ensure environmental compliance. The EPA has a list of recycling centers that can be found here: http://earth911.com/

What should I do if I break a CFL?

The EPA recommends that if a CFL breaks carefully sweep up all the fragments wipe the area with a wet towel and dispose of all fragments, including the used towel, in a sealed plastic bag. Follow all disposal instructions. If possible open windows to allow the room to ventilate. Do NOT use a vacuum. Place all fragments in a sealed plastic bag and follow disposal instructions.

The 5s Housekeeping Approach Within Lean Manufacturing

What Is 5S?
5S is a set of techniques providing a standard approach to housekeeping within Lean . It is often promoted as being far more than simply housekeeping and some of the elements described below certainly have broader implications. It originated, as did most of the elements of JIT, within Toyota. A cornerstone of 5S is that untidy, cluttered work areas are not productive. As well as the physical implications of junk getting in everybody's way and dirt compromising quality, we are all are happier in a clean and tidy environment and hence more inclined to work hard and with due care and attention. Naturally enough, the elements of 5S are all Japanese words beginning with the letter S. Since their adoption within Western implementations of JIT, or Lean , various anglicised versions of the terms have been adopted by different writers and educators. These are listed below against the individual elements and it can be seen that none are entirely satisfactory.

Lean Manufacturing Housekeeping 5S "pillars"

The individual items within 5S are known as the "pillars" and are:

1. 5s Seiri (Sort)
Seiri is the identification of the most successful physical Organisation of the workplace. It has been variously anglicised as Sort, Systematisation or Simplify by those wishing to retain the S as the initial letter of each element. It is the series of steps by which we identify things which are being held in the workplace when they shouldn't, or are being held in the wrong place. Put simply, we may identify a large area devoted to tools or gauges, some of which are needed regularly and some used infrequently. This brings all sorts of problems, including:

o o o o

Operators unable to find the item they need, being unable to see wood for trees. The time spent searching is a waste (or in Japanese speak a muda) and if we only held the items needed regularly in a prominent position we would save time. Quality issues when gauges are not calibrated on time because too many are held. Safety issues when people fall over things. Lockers and racking cluttering the workplace making it hard to move around or to see each other and communicate.

Some of the standard texts also talk about the elimination of excess materials and WIP. This is a complete restatement of all the JIT goals of releasing capital, reduced movement, shorter cycle times and so on. The question may be asked: should we then see inventory and WIP reduction as part of the implementation of the lean approach or as an element of 5S? The answer, as ever, is that keeping inventory and WIP to a minimum is simple good practice. Whether we view it as JIT, or lean, or 5S or assign any other term is quite frankly irrelevant. The major element of Seiri is simply a critical look at the area. Involving cross-functional teams, or looking at each other's areas, is an obvious first step. People tend to be blind to failings in their own work place and a fresh pair of eyes can be useful. Another element of the standard approach is 'red tagging' where items are given a tag which says what the item is, which location it is in and when it was identified in this location. We then leave the area for a

while and anybody using the item notes this. We go back some time later and can readily identify things that haven't moved, or been used. Items which have not been used can then potentially be disposed of. As a first pass we should perhaps create a quarantine area before throwing items away, selling them or reworking them into something else. Other items may be deemed necessary but used infrequently and so an alternative location can be found. If the operator needs a particular tool only once or twice a month then a 20-yard walk is not a problem especially if the space thus saved on the workbench helps to make the workplace more productive, or helps address quality issues.

2. 5s Seiton (Set)
Seiton is the series of steps by which the optimum organisation identified in the first pillar are put into place. The standard translation is Orderliness but again some wish to keep the initial S and use Sort (yes, that is also one of the translations of Seiri), Set in order, Straighten and Standardisation. The sorting out process is essentially a continuation of that described in the Seiri phase. Removing items to be discarded or held in an alternative location will create space. This space will be visible and facilitate the alternative layout of the area. In some cases, of course, we are talking about what a fitter will have on his bench, or in racks alongside the bench. In other cases we may be considering where we should locate a piece of plant - for example we may relocate a coin press to enable items to be completed in one work area rather than requiring a significant movement down the shop. This is something which we also undertake when adopting cellular manufacturing. We then look at how we can restructure the work content so that certain operations can be carried out within the cycle of others for example we may carry out a trimming operation on a steel component while the press which produced it is busy creating the next one. Again, is this a 5S initiative, or part of akaizen programme, or something else? Again, who cares, as long as we get on and achieve an improvement in business performance? Standardisation includes all the elements of setting out a consistent way of doing things. This includes standard manufacturing methodologies, standard equipment and tooling, component rationalisation, drawing standardisation, consistency in the documentation which accompanies work, design for manufacture (or concurrent engineering) and standardisation in the clerical processes which deliver work to the shop floor and track its progress. All of this could be said to be part of a basic Total Quality approach. The standard ways of doing things should include poka-yoke or error-proofing. Again it might be asked whether this is part of 5S or one aspect of a broader programme.

3. 5s Seiso (Shine)
Anglicised as Cleanliness but again the initial S can be retained in Shine, or Sweeping. The principle here is that we are all happier and hence more productive in clean, bright environments. There is a more practical element in that if everything is clean it is immediately ready for use. We would not want a precision product to be adjusted by a spanner that is covered in grease which may get into some pneumatic or hydraulic fittings. We would not wish to compromise a PCB assembly by metallic dust picked up from an unclean work surface. Other issues are health and safety (perhaps slipping in a puddle of oil, shavings blowing into people's eyes) and machine tools damaged by coolant contaminated by grease and dust. The task is to establish the maintenance of a clean environment as an ongoing, continuous programme. Some time should be set aside for cleaning each day, or each shift. (We may have cleaners who come in a sweep office floors, and even clean the floor in a production area, but they do not clean the production equipment. Even if they did, this would miss one of the opportunities available - an operator cleaning and

lubricating his machine tool will spot worn or damaged components.) Cleaning then begins to impinge upon what we already know as preventive maintenance. Cleaning critical components of a piece of equipment is already one element of the activities carried out under the PM banner. The implementation of Seiso revolves around two main elements. The first is the assignment map which identifies who is responsible for which areas. The second is the schedule which says who does what at which times and on which days. Some of these happen before a shift begins, some during the shift and some at the end. Again, this is very reminiscent of what we do when adopting PM. The standard texts such as that of Hiroyuki Hirano then go on to talk about establishing the shine method for each item / area. This includes such elements as agreeing an inspection step at the beginning of each shift, establishing exactly how each activity within the programme is to be carried out. A key aspect is very much akin to set-up reduction (or SMED) in that we should be aiming as much as possible to internalise the activities - in other words, to minimise the downtime needed to keep the facilities clean. Finally the standard texts talk about preparation - making sure the equipment needed to clean is always available, always ready for use. The excellent parallel to this is, again, with set-up reduction, which itself is often compared to Grand Prix teams preparing to change tyres. As with many such topics, we are talking about here is to a large extent simply common sense. We do not wish to allocate 5 minutes for a bed to be swept on a piece of grinding equipment if the operator is going to spend 4 minutes finding his brush.

4. 5s Seiketsu (Standardisation)
This is well described as Standardised cleanup, but other names adopted include Standardisation (not to be confused with the second pillar), Systematisation and Sanitation. Seiketsu can be the thought of as the means by which we maintain the first three pillars. There is, obviously, a danger in any improvement activity that once the focus is removed and another 'hot button' grabs management attention, things go back to the way they were before. Seiketsu is the set of techniques adopted to prevent this happening. Basically this involves setting a schedule by which all the elements are revisited on a regular basis - usually referred to as the '5S Job Cycle.' The first step in the cycle is a periodic review of the area, perhaps involving red tagging but certainly involving people from other areas of the business. This will identify where standards have slipped - for example where pieces of tooling or fixtures which are used infrequently are no longer being put in the remote location agreed at the outset and consequently a bench is now cluttered with the regular items buried under a pile of irregular. (In other words, the Seiri phase is undertaken periodically - usually monthly, perhaps quarterly.) The second step is to undertake Seiton activities as required - that is, as prompted by the first step. Finally within Seiketsu people from other areas visit and cast a critical eye over the state of the area. Again, an external assessor may notice degradation that is not clear to the people who work in the area. Hirano talks of a checklist within Seiketsu whereby the external visitors mark the area on a number of key criteria defined at the outset of the programme. For example, are the storage areas still clearly defined? Does the tool rack still have clear outlines or profiles for each tool to be stored in it? Does the area meet the general standards of cleanliness?

5. 5s Shitsuke (Sustain)
The final stage is that of Discipline. For those who wish to retain the use of initial S's in English this is often listed as Sustain or Self-discipline. There is a fundamental difference between Seiketsu and Shitsuke. The fourth pillar is the introduction of a formal, rigorous review programme to ensure that the benefits of the approach are maintained. The fifth pillar is more than this; it is not simply the mechanical means by which we continue to monitor

and refine, it is the set of approaches we use to win hearts and minds, to make people want to keep applying good practice in shop organisation and housekeeping. In this sense, discipline is perhaps an unfortunate term as it implies people forced to do something, with consequent penalties if they do not. The way in which management achieves this establishment of ongoing commitment within the workforce depends, of course, on the culture already in place. As with the adoption of kaizen (continuous improvement) or quality circles we have to press the right buttons to stimulate people. If the business has a history of treating people like cattle, giving no credence to their suggestions and simply trying to improve performance by driving the workers ever harder, then enthusiasm for any sort of initiative aimed at building a better environment is going to be hard to generate. There are a number of elements to any ongoing improvement activity in any business. Which take preeminence in a particular organisation varies with the history and culture of that organisation. Suffice to say that key points are:

o o o

o o

Communication. We need people to be aware of what we are trying to achieve, and why. Education. They need to understand the concepts and the individual techniques. Rewards and Recognition. People need to feel that their efforts are recognised. Whether the reward is a senior manager walking past and saying "that's very good, well done" or some form of award (financial gain, prize or formal presentation of a certificate) depends on the organisation. Time. If we want people to spend five minutes every four hours removing swarf from the floor around their machine we have to make sure that we allow them this time. We cannot give this as an instruction yet at the same time push for more time spent achieving productivity targets. Structure. We need to identify what is to be done, by whom, and ensure that schedules are updated and clearly visible.

Implementing 5S Housekeeping and Lean Manufacturing

Would we want to launch 5S as a stand-alone project, as a complete entity? The elements of 5S are all valuable in their own right but they simply form part of the bigger picture of establishing good practice. They sit alongside the other elements of Lean , or Just in Time, or World Class and some of the elements in, for example, Seiton (standardisation) are in fact straight lifts from textbooks on other forms of improvement activity. There is nothing in any 5S material, for example, to give guidance on improving the clerical processes for generating production paperwork following receipt of a sales order! The answer, surely, is to understand 5S as we understand all aspects of other types of improvement and problem-solving activity and then to agree a change programme for our own business. This is not to say that we must not launch a project which we call "5S" - some businesses have more success if improvement initiatives are launched with a generic, well-publicised term as project name. Equally, this is not a good solution in other organisations. Again, the history and culture of the company or the specific plant have to be taken into account when this decision is taken.

~ Ian

5S is the name of a workplace organization methodology that uses a list of five Japanese words which are seiri, seiton, seiso, seiketsu and shitsuke. Transliterated or translated intoEnglish, they all start with the letter "S". The list describes how to organize a work space for efficiency and effectiveness by identifying and storing the items used, maintaining

the area and items, and sustaining the new order. The decision-making process usually comes from a dialogue about standardization which builds a clear understanding among employees of how work should be done. It also instills ownership of the process in each employee. [edit]Phases

of 5S

There are 5 primary phases of 5S: sorting, straightening, systematic cleaning, standardizing, and sustaining. Additionally, there are three other phases sometimes included; safety, security, and satisfaction. [edit]Sorting

(Seiri)

Eliminate all unnecessary tools, parts, and instructions. Go through all tools, materials, and so forth in the plant and work area. Keep only essential items and eliminate what is not required, prioritizing things per requirements and keeping them in easily-accessible places. Everything else is stored or discarded. [edit]Stabilizing

or Straightening Out (Seiton)

There should be a place for everything and everything should be in its place. The place for each item should be clearly labeled or demarcated. Items should be arranged in a manner that promotes efficient work flow, with equipment used most often being the most easily accessible. Workers should not have to bend repetitively to access materials. Each tool, part, supply, or piece of equipment should be kept close to where it will be used in other words, straightening the flow path. Seiton is one of the features that distinguishes 5S from "standardized cleanup". This phase can also be referred to as Simplifying.[1] [edit]Sweeping

or Shining (Seiso)

Clean the workspace and all equipment, and keep it clean, tidy and organized. At the end of each shift, clean the work area and be sure everything is restored to its place. This makes it easy to know what goes where and ensures that everything is where it belongs. Spills, leaks, and other messes also then become a visual signal for equipment or process steps that need attention. A key point is that maintaining cleanliness should be part of the daily work not an occasional activity initiated when things get too messy. [edit]Standardizing

(Seiketsu)

Work practices should be consistent and standardized. All work stations for a particular job should be identical. All employees doing the same job should be able to work in any station with the same tools that are in the same location in every station. Everyone should know exactly what his or her responsibilities are for adhering to the first 3 S's. [edit]Sustaining

the Practice (Shitsuke)

Maintain and review standards. Once the previous 4 S's have been established, they become the new way to operate. Maintain focus on this new way and do not allow a gradual decline back to the old ways. While thinking about the new way, also be thinking about yet better ways. When an issue arises such as a suggested improvement, a new way of working, a new tool or a new output requirement, review the first 4 S's and make changes as appropriate. [edit]Safety A sixth phase, "Safety", is sometimes added. There is debate over whether including this sixth "S" promotes safety by stating this value explicitly, or if a comprehensive safety program is undermined when it is relegated to a single item in an efficiency-focused business methodology. [edit]Security A seventh phase, "Security", can also be added. In order to leverage security as an investment rather than an expense, the seventh "S" identifies and addresses risks to key business categories including fixed assets (PP&E), material, human capital, brand equity, intellectual property, information technology, assets-in-transit and the extended supply chain.

[edit]Satisfaction An eighth phase, Satisfaction, can be included citation needed . Employee Satisfaction and engagement in continuous improvement activities ensures the improvements will be sustained and improved upon. The Eighth waste Non Utilized Intellect, Talent, and Resources can be the most damaging waste of all. It is important to have continuous education about maintaining standards. When there are changes that affect the 5S program such as new equipment, new products or new work rules, it is essential to make changes in the standards and provide training. Companies embracing 5S often use posters and signs as a way of educating employees and maintaining standards. [edit]The
[ ]

Origins of 5S

5S was developed in Japan. It was first heard of as one of the techniques that enabled what was then termed Just in Time Manufacturing. The Massachusetts Institute of Technologys 5-year study into the future of the automobile in the late 1980s[2] identified that the term was inappropriate since the Japanese success was built upon far more than components arriving only at the time of requirement. John Krafcik, a researcher on the project, ascribed Lean to the collective techniques being used in Japanese automobile manufacturing; it reflected the focus on waste in all its forms that was central to the Japanese approach. Minimised inventory was only one aspect developed by Hiroyuki Hirano within his overall approach to production systems.[3] Many Western managers coming across the approach for the first time found the experience one of enlightenment. They had perhaps always known the role of Housekeeping within optimised manufacturing performance and had always known the elements of best practice. However, Hirano provided a structure for improvement programs. He pointed out a series of clearly-identifiable steps, each building upon its predecessor. Western managers, for example, had always recognised the need to decide upon locations for materials and tools and upon the flow of work through a work area; central to this (but perhaps implicit) is the principle that items not essential to the process should be removed stored elsewhere or eliminated completely. By differentiating between Seiri and Seiton, Hirano made the distinction explicit. He taught his audience that any effort to consider layout and flow before the removal of the unnecessary items was likely to lead to a sub-optimal solution. Equally the Seiso, or cleanliness, phase is a distinct element of the change program that can transform a process area. Hiranos view is that the definition of a cleaning methodology (Seiso) is a discrete activity, not to be confused with the organisation of the workplace and this clearly helps to structure any improvement program. It has to be recognised, however, that there is inevitably an overlap between Seiton and Seiso. Western managers understood that the opportunities for various cleanliness methodologies vary with the layout and storage mechanisms adopted but by breaking down the improvement activity in this way it is quite clear that the requirements for the cleanliness regime have to be understood as a factor in the design aspect of Seiton. Interestingly, as noted by John Bicheno,[4] Toyotas adoption of the Hirano approach, is 4S, with Seiton and Seiso combined presumably for this very reason. The improvement team must avoid the trap of designing the work area and then considering the cleanliness or tidiness mechanism. Hirano also reminded the world of the Hawthorne Effect. We can all introduce change and while people in the business consider the change program to be under management focus the benefits of the change will continue, but when this focus has moved (as is inevitably the case) performance will once more slip. Western managers, in particular, may have benefitted from the distinction between the procedural or mechanical elements, Seiketsu, of keeping these matters in focus and the culture change, Shitsuke, which is most definitely a distinct approach to bringing about a new way of working. A number of publications on the subject in the West have questioned whether this culture can really be tackled as part of an exercise of relatively limited scope. [5] The broader kaizen, or continuous improvement, approach is built, among other things, upon the companys valuation of all members of the workforce. If employees dont feel valued within the overall company culture, perhaps the change required falls outside the limits of a Housekeeping improvement program.

[edit]The

Objectives of 5S

Hirano identified a range of benefits from improved housekeeping, all of which can be regarded as falling within the Lean portfolio that is, they are all based around the elimination of waste in one form or another. The most obvious benefit from items being organized in such a way (i.e. that they are always readily available) is that of improved productivity. Production workers being diverted from production to look for tools, gauges, production paperwork, fasteners, and so on is the most frustrating form of lost time in any plant. A key aspect of Hiranos organisation approach is that the often-needed items are stored in the most accessible location and correct adoption of the standardisation approach means that they are returned to the correct location after use. Another element of Hiranos improved housekeeping is improved plant maintenance workers owning a piece of plant, responsible for keeping it clean and tidy, can take ownership for highlighting potential problems before they have an impact on performance. (Of course, this brings with it the interface with preventive maintenance and the need for clarity in the assignment map, that is who does what. The division of tasks between production workers and specialist maintenance engineers varies with the nature of the business, but ownership rests within the business unit rather than within the service provider.) The next aim is perhaps Quality. The degree of impact of dirt in a manufacturing environment, obviously, varies with the nature of the product and its process but there are few, if any, areas where dirt is welcome. Even if it is only in the form of soiled documentation accompanying the goods to the customer this can send a very negative message about the company and its culture. In other cases dirt can have a serious impact on product performance either directly or indirectly, perhaps through compromising the integrity of test processes. Of course, 5S does more than address dirt; an inappropriate layout can result, for example, in product damaged through excessive movement or through the use of tooling other than that defined as the standard. Standardisation is a theme of Hiranos approach, overlapping to a considerable extent with, for example, that of Ohno. A Standard Operating Procedure for tool certification is much easier to achieve if the tool to be certified is always in a clearly-marked location. Another goal is improved Health & Safety. Clear pathways between workbenches and storage racks can minimise accidents, as can properly-swept floors. As with Quality, a well-organised, clean and tidy facility lends itself more readily to standard practice. Hirano also described how an environment in which the workforce has pride in their workplace can contribute to a considerable extent in a number of ways including customer service. Improving the layout of the facility merges with the concept of visual management; if workers can see the status of plant and of work in the facility, thus removing the need for complex tracking and communication systems, then benefits will accrue. 5S can also be a valuable sales tool when potential customers visit; a well-organised, clean and tidy facility sends a message of a professional and well-organised supplier. One point made by all practitioners is that the adoption of 5S must be driven by goals. An article in the journal of the UKs Institute of Operations Management written by Mark Eaton and Keith Carpenter of the Engineering Employers Federation noted that the successful implementation of 5S requires that everyone understand why it is being used and what the expected results are. As with all Lean techniques the aim is improvement in business performance; the adoption is not an end in itself.. [edit]The

Evolution of 5S
This unreferenced section requires citations to ensureverifiability.

Many Western companies now promote Hiranos approach with a sixth S added for Quality. Not unnaturally, there is some debate over this, with devotees on both sides of the argument. The sixth S serves a fundamental purpose it reminds everyone of the need for Quality. A key lesson taught by Japanese automobile manufacturers, and one central to theToyota Production System, is that traditional levels of performance must be not only exceeded, but

replaced by a completely different perception of the scale of what is acceptable. Rather than managing defects in percentage terms, Western managers heard of management in parts per millions, with single-figure levels of defects being the goal. Given that a 1% failure rate equates to 10,000 ppm the scale of improvement to be sought as part of the adoption of Lean was, to say the least, spectacular. This improvement in quality levels could, of course, only be achieved with a complete re-definition of processes and culture within Western manufacturing. This includes issues such as Design for Manufacturing and the fundamental change from Quality Control to Quality Assurance (that is, the Quality department role moving from inspecting and highlighting problems to guaranteeing methods and procedures to eliminate errors). Housekeeping, of course, is central to this and adding a sixth S highlights this. The contrasting view, and the one taken by Hirano in establishing this approach, is that each and every S is a phase. As noted earlier, a major lesson for Westerners was Hiranos 5S methodology breaking the program down into a series of steps. The sixth S does not add to this; Quality is not a phase, it is an objective along with productivity and the others described above. Moreover, it is an objective of each and every phase. Adding the sixth S might be perceived as recommending a program carrying out the sorting out, organising, cleanliness, procedural and cultural steps and subsequently building in Quality, which of course is not possible. If all the objectives have not been built in throughout each element of the definition of the new way of working then they can not be applied as an additional phase.

Kaizen (?), Japanese for "improvement", or "change for the better" refers to philosophy or practices that focus upon continuous improvement of processes in manufacturing, engineering, game development, and business [1] [2] management. It has been applied in healthcare, psychotherapy, life-coaching, government, banking, and other industries. When used in the business sense and applied to the workplace, kaizen refers to activities that continually improve all functions, and involves all employees from the CEO to the assembly line workers. It also applies to [3] processes, such as purchasing and logistics, that cross organizational boundaries into the supply chain. By improving standardized activities and processes, kaizen aims to eliminate waste (see lean manufacturing). Kaizen was first implemented in several Japanese businesses after the Second World War, influenced in part by American [4] business and quality management teachers who visited the country. It has since spread throughout the world and is now being implemented in many other venues besides just business and productivity. [edit]Introduction Kaizen is a daily process, the purpose of which goes beyond simple productivity improvement. It is also a process that, when done correctly, humanizes the workplace, eliminates overly hard work ("muri"), and teaches people how to perform experiments on their work using the scientific method and how to learn to spot and eliminate waste in business processes. In all, the process suggests a humanized approach to workers and to increasing productivity: "The idea is to nurture the company's human resources as much as it is to praise and encourage participation in [5] [6] kaizen activities." Successful implementation requires "the participation of workers in the improvement." People at all levels of an organization participate in kaizen, from the CEO down to janitorial staff, as well as external stakeholders when applicable. The format for kaizen can be individual, suggestion system, small group, or large group. At Toyota, it is usually a local improvement within a workstation or local area and involves a small group in improving their own work environment and productivity. This group is often guided through the kaizen process by a line supervisor; sometimes this is the line supervisor's key role. Kaizen on a broad, cross-departmental scale in

companies, generates total quality management, and frees human efforts through improving productivity using [citation needed] machines and computing power. While kaizen (at Toyota) usually delivers small improvements, the culture of continual aligned small improvements and standardization yields large results in the form of compound productivity improvement. This philosophy differs from the "command and control" improvement programs of the mid-twentieth century. Kaizen methodology includes making changes and monitoring results, then adjusting. Large-scale pre-planning and extensive project scheduling [citation needed] are replaced by smaller experiments, which can be rapidly adapted as new improvements are suggested. In modern usage, a designed to address a particular issue over the course of a week is referred to as a "kaizen blitz" [citation or "kaizen event". These are limited in scope, and issues that arise from them are typically used in later blitzes.
needed]

[edit]History After WWII, to help restore Japan, American occupation forces brought in American experts to help with the rebuilding of Japanese industry while The Civil Communications Section (CCS) developed a Management Training Program that taught statistical control methods as part of the overall material. This course was developed and taught by Homer Sarasohn and Charles Protzman in 1949-50. Sarasohn recommended W. Edwards Deming for further training in Statistical Methods. The Economic and Scientific Section (ESS) group was also tasked with improving Japanese management skills and Edgar McVoy was instrumental in bringing Lowell Mellen to Japan to properly install the Training Within Industry (TWI) programs in 1951. Prior to the arrival of Mellen in 1951, the ESS group had a training film to introduce the three TWI "J" programs (Job Instruction, Job Methods and Job Relations)---the film was titled "Improvement in 4 Steps" (Kaizen eno Yon Dankai). Thus the original introduction of "Kaizen" to Japan. For the pioneering, introduction, and implementation of Kaizen in Japan, the Emperor of Japan awarded the 2nd Order Medal of the Sacred Treasure to Dr. Deming in 1960. Consequently, the Union of Japanese Science and Engineering (JUSE) instituted the annual Deming Prizes for achievement in quality and dependability of products. On October 18, 1989, JUSE awarded the Deming Prize to Florida Power & Light Co. (FPL), based in the US, for its exceptional accomplishments in process and quality control management. FPL was the first company outside Japan to win the Deming Prize. Reference: US National Archives - SCAP collection - PR NewsWire [edit]Implementation The Toyota Production System is known for kaizen, where all line personnel are expected to stop their moving production line in case of any abnormality and, along with their supervisor, suggest an improvement to resolve the abnormality which may initiate a kaizen.

The PDCA cycles[7]

The cycle of kaizen activity can be defined as:

Standardize an operation and activities. Measure the standardized operation (find cycle time and amount of in-process inventory) Gauge measurements against requirements Innovate to meet requirements and increase productivity Standardize the new, improved operations Continue cycle ad infinitum

This is also known as the Shewhart cycle, Deming cycle, or PDCA. Other techniques used in conjunction with PDCA include 5 Whys, which is a form of root cause analysis in which the user asks "why" to a problem and its answer five [8] successive times. There are normally a series of root causes stemming from one problem, and they can be visualized using fishbone diagrams or tables. Masaaki Imai made the term famous in his book Kaizen: The Key to Japan's Competitive Success. Apart from business applications of the method, both Anthony Robbins and Robert Maurer have popularized the kaizen principles into personal development principles. In his book,One Small Step Can Change Your life: The Kaizen Way and his eight CD set, The Kaizen Way to Success, Dr. Maurer looks at both personal and professional [9] success using the kaizen approach. In their book The Toyota Way Fieldbook, Jeffrey Liker, and David Meier discuss the kaizen blitz and kaizen burst (or kaizen event) approaches to continuous improvement. A kaizen blitz, or rapid improvement, is a focused activity on a particular process or activity. The basic concept is to identify and quickly remove waste. Another approach is that of [10] the kaizen burst, a specific kaizen activity on a particular process in the value stream. WebKaizen Events, written by Kate Cornell, condenses the philosophies of kaizen events into a one-day, problem solving method that leads to prioritized solutions. This method combines Kaizen Event tools with PMP concepts. It introduces the Focused Affinity Matrix and the Cascading Impact Analysis. The Impact/Constraint Diagram and the [11] Dual Constraint Diagram are tools used in this method. Key elements of kaizen are quality, effort, involvement of all employees, willingness to change, and communication. [edit]The

five main elements of kaizen

This unreferenced section requires citations to ensureverifiability.

Teamwork Personal discipline Improved morale Quality circles Suggestions for improvement

Lighting Philips Electronics India, Indias largest lighting company operates in business areas of Lamps,Luminaires, Lighting Electronics, Automotive and Special Lighting. Today, as global leader inLighting, Philips is driving the switch to energy-efficient solutions. With worldwide electricallighting using 19 per cent of all electricity, the use of energyefficient lighting will significantlyreduce energy consumption around the world and thereby cut harmful CO2 emissions. PhilipsIndia has been consistently working with industry bodies such as ELCOMA, Bureau of energyefficiency and NGOs towards addressing Indias power crisis through promotion of energyefficient lighting in India.Philips provides advanced energy-efficient solutions for all segments: road lighting, office &industrial, hospitality and home. Philips is also a leader in shaping

the future with exciting newlighting applications and technologies such as LE

D

technology, which, besides energyefficiency, provides attractive benefits and endless new never-beforepossible lightingsolutions.In 2008, Philips inaugurated a global research and development (R&
D

) centre for lightingelectronics in India. This was its third such unit in the world. The facility which is situated in Noida will not only cater to the needs of the Indian market but also the Asia-Pacific, Europe and North America. The other R&
D

centres are located at Eindhoven in the Netherlands and inShanghai, China. One of the primary research areas for the centre is to develop products that cantackle high

voltage fluctuations in India. The centre currently employs 35 engineers. Around 40 per cent of Philips revenue in India comes from the lighting business

BRAND PROMISE It is the combination of two unique capabilities that enables us to deliver on our sense and simplicity promise. These capabilities are firstly, by understanding people and secondly,technology integration and product design. We put our end users front and center of product innovations starting with understanding their needs and aspirations. We use best-in-class research facilities and agencies to validate and ensurethat our product innovations are designed around peoples needs

and aspirations, easy toexperience and advanced. SUSTAINABILITY In 2009 we evaluated our sustainability strategy and resolved to fully leverage sustainability asan integral part of our overall strategy and an additional driver of growth, as reflected in the Philips Management Agenda 2010.
11

To deliver on our brand promise of

sense and simplicity and at the same time provide thecompany direction for the longer term in this area, we have identified three sustainabilityleadership key performance indicators where we can bring our competencies to bear, care,energy efficiency and materials including targets for 2015:
y

Bringing care to more than 500 million peopleTarget: 500 million lives touched by 2015
y

Improving energy efficiency of Philips productsTarget: 50% improvement by 2015 (for the average total product portfolio) compared to2009
y

Closing the materials loopTarget: Double global collection, recycling amounts and recycled materials in products by 2015 compared to 2009.Each sector will take the lead on one of the leadership key performance indicators withHealthcare leading care, Lighting energy efficiency and Consumer Lifestyle materials.In addition, we defined a set of complementary performance indicators to accelerate change anddrive performance, including the Eco Vision4 parameters With EcoVision4 we have committed to the following by 2012: Generate 30% of total revenues from Green Products

Double investment in Green Innovations to a

cumulative EUR 1 billion Improve our operational energy efficiency by 25% and reduce our CO2 emissions by 25%, allcompared with the base year 2007.

PHILIPS ELECTRONICS MOHALI PLANT The mohali plant was established in 1985 as PUNJAB ANAND LAMP Ltd, as its second division of lamp industry after the varodra plant , at that time it was a joint stock company andmajority of shares was with Punjab Anand Lamp around 75% , but in the year 2001 the company ownership changed and the whole shares was bought by PHILIPS ELECTRONIC INDIA Ltd.and its name was changed to PHILIPS ELECTRONIC INDIA Ltd. MOHALI LIGHTFACTORY.The plant is situated in Industrial focal point PHASE-9

MOHALI near Mohali railway stationand is sreaded in 26 acres. Total employees of tis plant is 532 including casual employees. Thiscompany is a landmark in the Punjab state as it is the only factory which is most profitable onethan any industry located in Punjab
MANUFACTURING AT MOHALI PLANT Mohali plant mainly manufactures lighting products basically of domestic usage this includes thefollowing products CFL bulbs 1. Genie - 5 watt, 8 watt, 11 watt2. Essential 8 watt, 11 watt, 14 watt, 18 watt, 23 watt, 29 watt3. Tornado 5 watt, 8 watt, 11 watt, 14 watt, 18 watt, 23watt, 29 watt4. T5 slim tube 28 wattCoil plant Philips Electronics India is the only company that produces coils in the

whole lighting industries in the world and in India only at the MOHALI PLANT
NEW DELHI: Lighting companies, Philips, Havells and Bajaj Electricals, have increased the prices of CFL (compact fluorescent lamp) bulbs by up to 15% due to soaring prices of key raw material rare earth element after the Chinese cut its production and exports. Phosphor, the rare earth element, prices have shot up almost six times to $300 per kg in the last few months because its supply fell short of demand following the Chinese government's move to protect its CFL industry. An entry level CFL bulb, which was selling at Rs 80 a few weeks ago, now costs Rs 90 in the domestic market.

"Increase in rare earth prices diluted the advantage we had earned through economies of scale," Havells Indiapresident Sunil Sikka said. Weakening rupee too has made imports costlier. Sikka said his company has proposed to the government to remove taxes on rare earth imports to keep prices of the energy-efficient bulbs under check. Indian companies are paying a tax of close to 20% on imports of rare earth. About 97% of global rare earth is produced in China. The country also dominates the global CFL production with a share of 70%. China's move to limit rare earth exports makes the industry's movement towards clean energy products difficult because there are no alternatives for phosphor, Philips Lighting India President Nirupam Sahay said. Rising incomes, along with falling prices and increased awareness, have helped CFL lighting to become a Rs 2,000-crore industry, growing 25-30 % a year. The total lighting market in the country is pegged at Rs 7,000 crore, still dominated by incandescent lamps, or light bulbs. Philips Lighting has increased CFL prices by 7-10%, while Bajaj Electricals increased them by 8-10%. The cost component of phosphor in CFL has increased to 18% from 5% till the second quarter of this year, Philips Lighting's Sahay said. Companies have not revised the prices of LED, or light-emitting diode lamps, because the cost component of rare earth in LED bulbs is low.
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Top 5 reasons for CFL failure

BY A D M I N ON D E C E M B E R 2 2 , 2 0 1 1 L E A V E A C O M M E N T IN C F L

We have heard of various benefits of energy saving light bulbs. These modern bulbs are designed to produce the same quality of light while simultaneously using up less electricity. CFL bulbs are the most popular energy efficient bulbs. These bulbs achieve higher efficiency by making use of mercury vapor which generates ultra violet [...] We have heard of various benefits of energy saving light bulbs. These modern bulbs are designed to produce the same quality of light while simultaneously using up less electricity. CFL bulbs are the most popular energy efficient bulbs. These bulbs achieve higher efficiency by making use of mercury vapor which generates ultra violet rays when charged with electric current to create light. CFL lamp life and light output performance is dependent on the electronic ballasting in the base of the lamp. The number of electronic components in ballast can vary from 16 to a high of 36. Performance and price are affected not only by the ballast design, but also the quality and tolerances of the individual parts themselves. The quoted life of bulb is 6,000-10,000 hours (the range varies due to different test conditions such daily usage, frequency of on-off cycles) as against less than 1,000 hours for traditional bulb. However, like other lamps, these bulbs also eventually burn out and sometimes fail prematurely. In India, bulb failure phenomenon is frequent and wide spread. So, what are the top reasons for CFL bulbs failure? I. Bulb components failure All CFL ballasts have electrolytic capacitors. The electrolytic capacitor contains a liquid that can be depleted and cause premature failure if the operating temperature is exceeded. The semi-liquid electrolyte acts as an interface to make electrical contact with the foil windings. This electrical interface is inherent in the capacitors ability to carry current and function as an energy storage unit for the electrical power input. When the interface between the electrolyte and the metallic foil windings begins to degrade, the electrical connection begins to fail. Figure 1: Burned CFL due to excessive heat

Why do bulb capacitors fail? Heat build-up is the primary cause of bulb degradation, which, depending on severity, can cause either short-term catastrophic failure (smoke or sparks), or long term functional degradation. This results in burnt smell and significantly yellowed plastic at the vent where the two ends of the glass entered the bulb base. Similar to the life expectancy of a silicon semiconductor die, the life expectancy of an electrolytic capacitor relates directly to its internal temperature. Every 10 C increase in internal temperature halves the component lifetime. The better quality CFLs have designed product to be operated in commercial applications in any burning position. This ability to tolerate higher heat from longer burning hours gives these CFLs a longer life expectancy and maintained light output. The commercial CFLs have some more durable parts including the addition of heat shields and heat sinks to dissipate heat.

Figure

2: CFL

life

decreases

due

to

increase

in

temperature

II. Failure of the glass bulb: The bulb glass could jump right off of the base on merely turning the switch on. This could probably be because bulb had already been hit and cracked. Turning the light on finished the job of bulb breakup. The service life of bulb components also decreases due to high ambient temperature. There is a mercury exposure risk to this type of failure as CFL bulbs are filled with, among other things, poisonous Mercury in gaseous form. If these bulbs are dropped or break, this Mercury is released into the surrounding atmosphere. Its possible for anyone who comes in contact with it to develop mercury poisoning. Thus, it is recommended to always hold CFL bulb by the base when fitting it in the socket and least pressure to be applied to the tubes as even a gentle squeeze may crack them. Figure 3: CFL tubes are extremely fragile

III. Frequent on and off: Turning a CFL on and off frequently can result in black rings at the base of the bulb glass and reduce its life. It is recommended that consumers use CFLs in applications where they are on for atleast 10-15 minutes. It is pertinent to note that bulb consumes more power during switchingon process. The brief surge in energy use when a CFL is turned on usually lasts about a tenth of a second and consumes about as much energy as five seconds of normal operation. It is estimated that frequent on and off could reduce the life by up to 10%. IV. Power Supply: High fluctuations in power supply can significantly reduce life of a CFL bulb. Moreover, in households which are heavily dependent on invertors for their regular electricity needs, failure risk is very high as people tend to use bulbs till battery completely drains out, thereby putting pressure on bulb to work even with very low voltage. V. Moisture: Another common cause of bulbs untimely death is moisture. CFL bulbs dont last long when put close to showers/tubs.

How to repair CFL bulb?

BY A D M I N ON D E C E M B E R 2 3 , 2 0 1 1 2 C O M M E N T S IN C F L , T I P S

Old Fluorescent and CFL bulbs are discarded everyday as waste. However, some of these burnt-out CFL and fluorescent bulbs can still be reused with a minor re-arrangement. This is because although the filament may have burnt, the gas inside the bulb is still there and can be relighted. Actually, the gas inside the bulb never [...] Old Fluorescent and CFL bulbs are discarded everyday as waste. However, some of these burnt-out CFL and fluorescent bulbs can still be reused with a minor re-arrangement. This is because although the filament may have burnt, the gas inside the bulb is still there and can be relighted. Actually, the gas inside the bulb never dies and it will last forever as long as the glass does not break. This method has been successfully tested and practically being used in several areas across India, especially rural areas. Option I In order to check whether CFL bulb is repairable, carefully disassemble the bulb and the ballast and test to see if it completes a circuit using a voltmeter or a wire-battery-led setup. There are two pairs of wires coming out of the head of the bulb. Check each pair with a multimeter for continuity. If the continuity is ok for both pairs, then the bulb is not burnt. The problem is with the balast electronics and it can be repaired. If the continuity test fails in either side or both, then the bulb is burnt but it can still be relighted with a small adjustment in electronic circuit. To understand how to repair dead CFL bulb, read instructions here. While it is possible to reuse failed bulbs, it is not advisable to attempt doing so by non-professionals. This is due to fair bit of technical complications involved as well as due to risk of hazardous material (mercury vapor) which can release from the tubes into the environment. To minimize risk of contamination, it is advisable to wear safety glasses and gloves while repairing dead bulb. The cost of repairing fused bulb through local bulb electricians is just Rs 20-30 with a warranty of 3-6 months. Option II Another alternative is to use failed bulb parts to prepare a custom LED lamp (see Figure 1 below). Since LEDs are low-current devices, they generally cannot be directly powered from 120-Volt (mains) power without a power supply or current-limiter of some sort. The CFL bodies, with their standard edison screw base connector, are designed to be both fire-retardant as well as safe for use with AC mains power; thus making them a safer box to house LED lighting that is powered directly from the AC mains (120-Volt AC). For more details, please click here to read detailed instructions:

Going green become costlier as CFL prices soars

BY A D M I N ON D E C E M B E R 2 2 , 2 0 1 1 1 C O M M E N T IN C F L , I N D U S T R Y N E W S

Consumer good companies have managed to held or improved margins and reported nominal growth during Q3, 2011 as the consumption demand remains strong even in a high inflationary environment. However, the volume growth has cooled down and could see a further slowdown if interest rates continues to remain high. Import oriented industries have particularly suffered [...] Consumer good companies have managed to held or improved margins and reported nominal growth during Q3, 2011 as the consumption demand remains strong even in a high inflationary environment. However, the volume growth has cooled down and could see a further slowdown if interest rates continues to remain high. Import oriented industries have particularly suffered in this downturn due to depreciation of the rupee and rising input costs. Economic Times has recently reported that various brands have increased prices of Compact Fluorescent Lamps (CFLs) by 5-15% in Nov 11. For example, a branded CFL bulb, which was selling at Rs 80 a few weeks ago, now costs Rs 90 in the domestic market. CFL bulb price rise has not been confined to India as the prices have also soared in developed nations as well. The average price for fluorescent bulbs has risen 37 percent this year in US. General Electric, facing complaints in the United States about rising prices for its CFL bulbs, highlighted that the prices of the rare earth element europium oxide has risen by 12 times in one year. Wal-Mart has also raised prices on some brands lately. The price rise is due to combination of various factors, some of which are discussed as follows: 1. Shortage of raw materials The China angle China is currently a producer of ~95% of the worlds rare earth materials which are vital for green-energy products including giant wind turbines, hybrid gasoline-electric cars and compact fluorescent bulbs. The increase in prices of CFL is largely attributed to rising prices of rare earth elements which are used for a coating called Phosphor on the inner surface of the fluorescent lamps that absorbs the ultraviolet light and converts it into fluorescent light, mostly in the visible spectral region. The high cost of rare earths is having a significant effect on cost of wind turbine and electric motor production as well in spite of offsetting government subsidies for green tech products.

China, the only producer of rare earth minerals in the world has been cutting on its exports citing environmental reasons. China has closed or nationalized dozens of the producers of rare earth metals over last few months in order to limit radioactive residues from the rare earth industry. China is currently exporting about 30,000 tons a year only one-fourth of the worlds demand. The problem with the supply of rare earth elements is that China sees them as of long term strategic importance for their future economy (similar to how other commodities and raw materials are controlled around the world like OPEC controls oil). Figure 1: Global rare earth materials production trends (1950-2010)

Source: U.S. Geological Survey (USGS) 2. Rising Demand The Government push and increasing awareness CFL is estimated to be a Rs 2,500 crore/ US$ 500 million industry. The industry has grown at CAGR of ~35% over 2005-10. CFL is approximately 30% of total lighting market in the country pegged at Rs 8,000 crore/ US$ 1.5 billion which is still dominated by incandescent lamps. The demand for CFL lamps is expected to grow at ~20% over next 5 years after which it may slow down to 10-15% as LEDs are likely to become preferred source of lighting by that time. Indias CFL market is catching up fast with the rest of the world. Bachat Lamp Yojana, announced in Jul 07 and launched in Feb 09, is the flagship program of Indian government to ensure nationwide access to efficient lighting to all at an affordable price and to phase out incandescent bulbs from

homes across India and replace them with CFLs. The government plans to completely phase out ~400 million incandescent bulbs by 2020. This would result in saving ~6,000 MW of electricity per annum. There is also a clear preference towards CFL bulbs among middle and upper class due to rising income levels, increasing electricity prices and awareness about environmental concerns. CFLs are also very popular in small towns facing severe shortage of electricity as they can run on battery invertors for long time. Figure 2: Annual CFL sales (million units) in India (2005-10)

Source: Elcom India 3. Rising cost of import (raw materials, taxes, currency depreciation etc) In October 2010, the Chinese announced plans to not only cut their production, but also to reduce exports by one-third. This has led to whopping 800% rise in Phosphor prices from over just five months. Pphosphor once represented roughly 10% to 15% of the cost of a typical CFL, it now exceeds 50% (or more in some models) of the total lamps production cost. Glass tubes are another significant component of CFL products, constituting ~45% of CFL component costs. In addition, Indian companies have to pay a hefty tax of ~22% on imports of rare earth material. As rupee has depreciated by ~15% in 2011, the cost of import has also gone up several times. The industry has been lobbying hard to the government to remove taxes on rare earth imports to keep prices of the energy-efficient bulbs under check. Figure 3: Phosphor Price rise in 2011 (RMB/ Kg)

Source: TCP Bulletin 4. High return rates increase effective cost of production and distribution The CFL market in India is complex, comprising of 12 major brands and hundreds of small players. About 40-50% of the market is dominated by the unorganized sector. The industry depends on large amounts of imports, with even branded products using large amounts of imported components. It is the unorganized and import-based nature of the industry which makes the regulatory and quality control challenge difficult but critical. To improve the production quality, the Bureau of Indian Standards had revised the standards for CFLs (increased the power factor, an indicator of lamp efficiency, from 0.5 to 0.85 and fixed 6,000 hours as the minimum life for all CFLs. CFLs have a high failure rate in India due to high fluctuations in electricity supply and lack of adherence to product specifications, especially in the rural areas. Replacement of the bulbs is particularly difficult due to long distances and high transport expenses. Currently, CFL manufacturers provide a product warranty varying from 6-12 months from the date of purchase. This has been a major concern for CFL makers in India because market malpractices have led to significant claims for returns. For example, in 2007-08, Havells return rate was 12.7% of its CFL sales. To rectify the situation, the company withdrew its products from certain states where malpractices were rampant. As market stabilizes in other states, it re-

gains the market share lost and significantly improved its return rate to 1.9% in 2009-10. In contrast, return rate for local non-branded CFLs is still as high as ~10%. 5. Pricing strategy high profit margins, a cash cow for manufacturers Various incentives by Indian Government to bulb manufacturers and rising electricity cost has resulted in soaring demand for energy efficient bulbs. However, the profit mongers, retailers and manufacturers, continue to charge super premium on these bulbs. A recent news article has discussed the profit margins CFL suppliers are charging from helpless consumers in the name of saving energy. CFL bulbs are generally priced so high to extract maximum profit from elite and environment conscious rich clientele who are willing to pay an exorbitant price. However, with a rising inequality in incomes, poor India can barely afford a meal and Rs 10/- light bulb, let alone a Rs 100/- CFL. It is pertinent to note that The maximum cost of production of a standard 20 Lm CFL is only ~ Rs 40/ US$ 0.8, computed with the concessional duty on import. If all costs, such as banking, clearing, forwarding, inward transportation, labor, other overheads, selling, distribution, and marketing including a profit margin of 15% are included, the price of the CFL bulb will not exceed Rs. 54/ US$ 1. Please note that these are conservative estimates and the actual cost of production is likely to be just Rs. 20/ US$ 0.5 considering the benefit of economies of scale. CFL is a manufacturers dreams come true as they are charged almost four times the production cost. Interestingly the average discount offered to the retailers across all states is >40% on the MRP in addition to several volume linked performance incentives. There is vast difference in pricing of branded and non-branded bulbs. Non-branded CFLs, primarily catering to price sensitive rural populace sell the products at ~75% discount to corresponding branded CFL. The idea is to churn CFLs in high volume and give shorter warranty (6 months vs 12 months for branded) to make up for high return rates. Outlook As China continues to restrict supply of rare earth materials, the prices are likely to only increase in short term. The first round of price increases has just beginning to surface with most manufacturers implementing their price increases in staggered manner. The timing of the latest price increases is politically awkward for the lighting industry and for environmentalists who backed a shift to energyefficient lighting. Going forward, the CFL industry is expected to increasingly consolidate away from the unorganized sector as the shift towards higher quality gains further momentum and the benefits of scale accrue to the larger players. Also, the price differential between branded and non-branded will further reduce due to economy of scale in production and increase in demand for newer technologies like LED.

No 1 2 3 4 5 6 7 8 9 10

Stn Code NZM KOTA BRC BSR PNVL RN SWV MAO KAWR UD

Stn Name H NIZAMUDDIN KOTA JN VADODARA JN VASAI ROAD PANVEL RATNAGIRI SAWANTWADI ROAD MADGAON KARWAR UDUPI

Route No. 1 1 1 1 1 1 1 1 1 1

Arrival Time Source 15:30 22:20 03:35 05:05 09:25 11:20 12:40 13:40 16:18

Dep. Time 11:00 15:40 22:36 03:40 05:10 09:30 11:22 12:50 13:42 16:20

Halt Time (In Minutes)

Distance 0

Day 1 1 1 2 2 2 2 2 2 2

Remark

10:00 16:00 5:00 5:00 5:00 2:00 10:00 2:00 2:00

458 986 1330 1397 1759 1984 2094 2176 2443