Increase Production in Small Scale Industry of India by Use of Lean Manufacturing Technology

IPASJ International Journal of Mechanical Engineering (IIJME)
Web Site: http://www.ipasj.org/IIJME/IIJME.htm

Email: editoriijme@ipasj.org
ISSN 2321-6441
A Publisher for Research Motivation........
Volume 3, Issue 4, April 2015
INCREASE PRODUCTION IN SMALL

SCALE INDUSTRY OF INDIA BY USE OF
LEAN MANUFACTURING TECHNOLOGY
1
1,2
Sanjeev Kadian, 2Randeep Singh, 3Ashok Kumar Malik
Department of Mechanical Engineering, OM Institute of Tecnology and Management, Hisar, Haryana.

3
Department of Mechanical Engineering, CT Institute of Technology, Jalandhar, Punjab, India
ABSTRACT
Lean manufacturing (LM) is mostly enthused by the Toyota Production System (TPS) which has been absorbed on removal of
waste and refining customer gratification. LM is a set of values, attitudes and business procedures to allow the execution of it,
which is broadly recognized and applied since 1960. Thus, the LM is demarcated as a manufacturing system that concentrating
incessant flow within supply chain by removing all wastes and execution continuous development towards product excellence.
Waste is everything other than the necessary equipment, materials, parts, space and working time. According to Dankbaar LM
will be the standard manufacturing mode in the 21st century. Hypothetically, LM can be practical to all productions and it is
considered as planned big stick in good market. The paper present the influence of using Lean Manufacturing Technology to
increase the production in scientific equipments manufacturing industry. In this case study the scientific equipments
manufacturing company employs part of the seven basic quality control (QC) tools to significantly improved the process
rejection and rework. By implementing these quality tools as the problem solving techniques the rejection rate was reduced
from 7.3% to 4% and Rework rate from 20% to 11.33%.
Keywords: Lean, Lean Manufacturing, Indian Industry, Small Scale Industry, Quality Control.
1.INTRODUCTION
1.1 Lean Manufacturing
According to industrial point of view Lean Manufacturing is an integrated socio-technical system whose main objective
is to eliminate waste by concurrently reducing or minimizing supplier, customer and internal variability [5]. Namely
LM, is a philosophy of production that emphasizes on the minimization of the amount of all the resources used in the
various activities of the enterprise with keeping in mind the requirements the product has to meet. It involves
identifying and eliminating non-value-adding activities in design, production, supply chain management and dealing
with customers. Lean manufacturers employ teams of multi skilled workers at all levels of the organization and use
highly flexible, increasingly automated machines to produce volumes of products in potentially enormous variety. It
contains a set of principles and practices to reduce cost through the relentless removal of waste and through the
simplification of all manufacturing and support processes.
Taking from the history Lean Manufacturing is a term given by James Womack, Dan Jones, and Daniel Roos in their
book the machine that changed the world, a study of the post WW II auto industry [7]. Womack and jones showed
that there was a marked difference between quality and productivity levels among American, European and Japanese
holding a clear advantage. The advantage can be traced to the manufacturing philosophy of the Japanese companies,
with Toyota the prime example of how Japanese auto manufacturing differed from US or European producers. The
Toyota Production System (TPS), as it is now known, is the basis for Lean Manufacturing principles There are
numerous methods that industries use to implement Lean Manufacturing. As the first approach, Lean is the "set of
tools" that assist in the identification and steady elimination of waste (Muda). As waste is eliminated, quality improves;
while production time and cost are reduced and the tools Such as 5S, Kanban,
and Poka-yoke are used [1]. But, there is a second approach to LM, which is promoted by Toyota. Toyota's view, and
states that the main method of Lean is not the tools, but the reduction of three types of waste: Muda ("non-value-adding
work"), Muri ("overburden"), and Mura (Unevenness), to expose problems systematically and to use the tools where the
ideal cannot be achieved. Toyota, focuses upon "improving the flow", by means of stably eliminating kinds of waste
through the system. Techniques to improve flow include production leveling, pull production and the Heijunka box.
Lean implementation is, therefore, focused on getting the right things to the right place at the right time in the right
quantity to achieve perfect work flow, while minimizing waste and being flexible and able to change. In order to
survive in a competitive market, improving quality and productivity of product or process is a must for any Indian
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industry. Some simple techniques like the seven basic quality control (QC) tools provide a very valuable and cost
effective to meet those objectives.
1.2 Small Scale Industries
According to the data provided by surveyors small manufacturing organizations have been contributing significantly to
the growth of the country. The Third SSI Census shows that there are 3.57 million units in the country with a fixed
investment of Rs. 9.21bn, that contributes Rs.74.2bn (at current prices) to worth of production and provides
employment to 19.97 million people [3]. By definition, a small scale unit in India cannot invest more that Rs.10mn
(Rs.50mn in selected sectors) in plant and machinery. This makes them less capital intensive and reduces the entry
barrier on account of investment capability. Due to the large population, they offer more employment and mostly use
local skills [6].
Due to India's present liberalized economy, we can say that the survival and growth of small-scale industry (SSI)
largely depends on its ability to innovate, improve operational efficiency and increase productivity. It has been observed
that the factories in the small-scale sector in India are generally less efficient in process and utility energy as compared
to larger enterprises, as well as to enterprises of equivalent capacity in other countries [4].
2. RELEVANCE OF LEAN SMALL SCALE MANUFACTURING IN INDIAN INDUSTRIES

Lean Manufacturing technique has a great importance with Indian small scale Industries. In India Small and medium
Scale industries (SME) play a very important role in Indian Economy. These industries are working on very old and
obsolete techniques of manufacturing. There is no any working culture available and even they are not thinking to
develop it. Indian small scale Industries are using top to bottom (management to workers) approach for information
flow or instruction flow but never ask for any suggestions and ideas from bottom (workers).
The Entrepreneurs are using the bottom work force physically but not intellectually. They are not using their hidden
talent and innovative ideas or suggestions which they are identifying while ground reality working. They are just
imposing their orders over them regarding production and production quality. In small scale industries there is no
culture for training to enhance the working skills or motivation of the work force but with lean manufacturing
technique it becomes a habit in the industry to learn and teach. Similarly there is no focus on data collection in industry
but with lean concepts they have started compilation of data in reference to rejection rate. There is missing a feeling of
responsibility in small scale industries because there is no housekeeping, no management information system, no store
management and there is no production planning and control system
3. CASE STUDY
3.1 Introduction
The competitive business in the scientific market has enhanced the company in this study to provide lower cost quality product.
Quality improvement program had been designed and been implemented to increase the potential of profit. By improving the
quality, it is also mean to improve the productivity and lower the rejection rate. The key of quality improvement of this company
is not only focusing an external customer but also its internal customer. The most commonly used seven quality tools are [2]:
The purpose of this study is to improve the quality of circular 15x lenses used in scientific equipments. The objective of this study is
to reduce the rework rate from 20% to 11.33% and rejection rate from 7.3% to 4%.
3.2 Process Details
The production of lenses starts with the process of glass cutting on slitting machine. The glass sheet is transferred to
slitting machine from the store. After cutting, the lenses are transferred for diameter cutting on the trepanning
machine. After preparing the diameter the curve radius of the lenses is prepared on the curve generator machine. Then
these lenses are sent to rougher grinder where the final thickness (302/303mm) of the lenses is done. After thickness
operation the lenses are heated and then charcoal is pasted on them this process is called is Melding. After Melding the
smoothening of lens is done on lens grinder machine and after the smoothening the lenses are again heated. Now this
time they are pasted with help of charcoal on a flat surface mount which is then fitted on to lens polishing machine for
the polishing operation. The fitting of lens on flat surface mounted is called blocking. After polishing the inspection of
lenses is done. This inspection is very critical as it requires a highly skilled worker to perform this. After inspection,
the edges of circular lenses are prepared. At last the final inspection is done, this inspection stage is also called star and
bubble checking. In this inspection, the lenses which are not found ok that lenses are directly rejected, there is no
chance of rework on these lenses. After this the corrective lenses are being sent to assembly section or stores. The
production in a month varies between 10 to12 lots. As, generally there are 300 pieces in a lot but sometimes due to
some defects in glass sheets, the lot size is reduced to 250,buts it happens rarely.
3.3 Data at initial stage of project
The company had collected the data for 10 lots manufactured during month of February 2014 which is based on daily check
sheet which include the quantity output of no. of rejection and rework pieces in different operations as shown in Table 1 and 2.
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Table 1: Rejection per operation.
Table 2: Rework per operation.
3.4. Analysis of the initial data

There were no practices of data collection for the rework and rejection of the lenses. No records were maintained.
Firstly a format to read out the rework and rejection data as created and it was implemented to collect the data. Now the
rework and rejection data was collected for each operation in the process of manufacturing of lenses. As it was seen that
out of total lot size 300 pieces at start, only 278 pieces were received ok at end , as out of 278 pieces 60 pieces were
reworked and the 22 pieces got rejected. Similarly data was collected for the 4 weeks and in these 4 weeks 10 lots were
completed.
From information in Table 1 and 2, the Pareto chart was constructed to find the top operations giving maximum rejection
and rework as shown in Figure 1 a n d 2 . I t was found that the rejection is 7.3% and the total rework is 20%. The
top 3 operation in which the rejection and rework was maximum were taken under consideration for the action to be
taken. The thorough detailed study was done and the brainstorming was also done to identify the most likely causes.
The cause and effect diagram were also drawn so that these causes can further be categorized and the root causes can be
identified easily.
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Figure 1 Pareto diagram for rejection.
Figure 2 Pareto diagram for rework.

3.5. Brain-storming
Poor maintenance of machine.
Poor handling of materials.
Bad Environment conditions.
Unorganized labour.
Lack of co-ordination.
Unorganized layout.
Lack of cleanliness.
Lack of motivation.
Inadequate supply of raw materials.
Improper scheduling.
No proper decision making.
No proper delegation of responsibility.
Poor communication.
Improper setting of tool.
3.6. Cause and effect diagrams
Figure 3, Figure 4 and Figure 5 show the fishbone diagram of the top three operations in which rework and rejection rate is
maximum. The root causes for the rejection and rework in these three operations can be separated into groups, such as
people, work method, environment, material, and equipment.
3.6.1 Polishing of lens
In this operation the rejection and rework of lenses is usually caused by process parameters such as processing time of lenses
during polishing, environment temperature and improper setting of tools. Machine maintenance and poor handling of tools and
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lenses can also cause to the problem. Figure 3 shows some possibility that might cause to the rejection and rework in polishing
operation.
Figure 4 Fishbone Diagram for Polishing operation.

3.6.2. Trepanning
Rejection and rework in trepanning is not only caused by incoming raw material (the lens which is received from
slitting machine after cutting) but also due lack of proper handling equipments the workers place the lenses on the
machine body itself after trepanning. There is no proper maintenance schedule for machines. Figure 4 s h ows some
possibility that might cause the rejection and rework in trepanning.
Figure 4 Fishbone Diagram for Trepanning operation.

3.6.3. Corginator and surface finish
Besides the operator reasons which causes rejection and rework, the measuring instrument for radius can also have some error
or working conditions can also have effect on rework and rejection. Figure 5 shows the fishbone diagram of rework and
rejection in Corginator and surface finish operations.
Figure 5 Fishbone Diagram for Corginator and Surface Finish operation.
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3.6.4. Improvement action plan

The related areas for improvement can be classified into operator, material, machine, work method and environment. Table 3,
Table 4 and Table 5 summarize the action plan for respective analysis of the top three operations.
TABLE 3: Action plan for Trepanning operation
Type
Action Plan Suggestion for rework and rejection in
trepanning operation
Machine
Operator
Must have skill / training provide Knowledge.

Must have good attitude / pay full attention.
Follow work procedure works.
Material
Every incoming material must be properly handled.

Lens from slitting m/c must be properly checked.
Machine
A preventive maintenance ensure machine always in good

Condition.
Work Method SOPs should be prepared.

Tooling setting inspection interval reduced to 15 minutes.
Light should be proper.
TABLE 4: Action plan for polishing operation
TABLE 5: Action plan for corginator and surface finish operation
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3.7. Data observed after action taken

TABLE 6: Rejections per operation after action taken.
TABLE 7: Rework per operation after action taken.
3.8. Results analysis and action implementation

After implementing the action plans for the top three operations, the significant improvement was observed. Based on 10 lots
data collected in 4 weeks collected in March 2012, the Run chart in Figure 23 and 24 shows that rejection and rework
percentage before and after action implementation.
Figure 6 Run chart for Rejection
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Figure 7 Run chart for Rework
4 . BARRIERS TO LEAN MANUFACTURING IMPLEMENTATION IN INDIAN SMALL SCALE INDUSTRIES

Lean manufacturing always benefit different organizations so opposing lean seems to be not right but there are many
mental challenges in the system every organization has to go through with it, these challenges are further sometimes
converted as a barrier in implementing lean. In some organizations fact that waste exists is not assumed, this add to a
barrier of lean. Therefore its need of understanding the roots causes of the wastes and thus further removing it from the
system. But it isnt easy task to recognized wastes and then eliminating it. All these work to be done goes through
different barriers in successful implementation of lean.
First barrier in lean is staff. Commitment towards lean is the key for any organization to attain benefits from it, but if
there is lack of commitment in staff, implementing lean will result in failure. People feel burden in implementing lean
activities just because people are very comfortable in doing what they are doing from years, the change is not acceptable
to them. The other factor in barrier of implementing lean is lower level management. Its not only upper level has to be
engaged in lean activities, workers also need to be committed towards each and every activity has to be performed in
implementing lean. Both Management and lower staff have to adopt lean as a philosophy. Unwillingness to learn and
see is another factor of concern when implanting a lean. In implementing lean there is requirement of continuously
doing hard work and there is need if continuous leaning and improving continuously. To sustain the idea of continuous
improvement there is need of culture change which is not very to maintain and this it fall in barrier of implementing
lean. Blame free environment need to be created. Demand volatility is another factor which falls in the barrier of
implementing lean. In many organizations in India it is found that lean strategies are thrashed due to the increasing
demand and variations is demand for different mix product portfolio. This makes lean techniques more difficult to
adopt. Lean is not limited to its tools is another factor which has to be understood in every organization which are
implementing lean. Lean tools and techniques can serve benefits for short run period. But they are not effective in long
term prospective; therefore there is need of taking lean as more of a philosophy for better results. Lack of planning is
pitfall in implementation of lean. Lean has to planned, there is need to educate all the members of organization for the
better understanding of lean. Training has to go hand in hand with planning. There should be no ineffective training in
the organization Lack of resources is a factor which falls in this category. There has to be good resources for execution
of implementing the lean at a higher level. Fear of loosing job also counts in this category. There is a psychological
factor of loosing the job on the account of lean implementation.
It can be seen that for the successful implementation of lean there is need to develop strong relationship, in fact all the
barriers more ever falls in the leadership issues. Its management which has to clear the vision of everyone in the
organization, management has to provide all the desired tools and resources to get lean project successful. Environment
has to be created in which lean thinking will achieve heights and the lean transformation will never fail.
5. CONCLUSION
An improvement action plan had been set-up, than the data had been collected for the 4 weeks from 10 lots and re-examine the
rework and rejection results. The rework has reduced to 11.33% from 20% and rejection has reduced to 4% from 7.3%. From
above analyses we find that after removing the various root causes of rejection and rework, the rejection of lenses is
reduced by 45.20% and rework of lenses is reduced by 43.35%.
This also have a positive effect on the productivity of the lens as at the start of this project the productivity of lens was
noted as:(278/300) x 100=92.6%. As after the implementation, the productivity was noted as: (288/300) x 100=96%.It
was noted that even a simple QC tools can make significant improvement to the company.
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To remain in business it has now become the necessity for all the industries especially SMEs to adopt the tools of Lean
Principles. Otherwise the multinational industries which are more efficient and have more resources will take over and
pull these SMEs of India out of business.
REFERENCES
[1]. Feld W.M., Lean Manufacturing: Tools, Techniques, and How to use them , Lucie Press, Boca Raton, FL: St.,
2003.
[2]. Ishikawa, K , What is Total Quality Control , Prentice Hall, Englewood,1985.
[3]. Narasimhan, G., Strategic Handling to changes in Small Manufacturing Organizations in India, International
Journal of business and Management, Vol.4, No.1, pp.141-148, 2009.
[4]. Sethi, G. and Pal, P., Energy Efficiency in Small Scale Industry An Indian Prespective, TERI(Tata Energy
Research Institute), 1995.
[5]. Shah, R. and Ward, P.T., Lean manufacturing: context, practice bundles, and performance, Journal of
Operations Management, Vol. 21, pp.129-149, 2009.
[6]. Vasudevan, A., Perspective of the Role of Small Scale Industries in India's Economic Development , Reserve
Bank of India Bulletin, Vol. 3, No. 10, pp.828, 1998.
[7]. Womack, J.P. Jones, D.T. and Roos, D., The machine that changed the World, New York; Harper
Perennial.,1990.
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IPASJ International Journal of Mechanical Engineering (IIJME)

Web Site: http://www.ipasj.org/IIJME/IIJME.htm

A Publisher for Research Motivation........

Volume 3, Issue 4, April 2015