Chapter-1: An Exhaustive Case Study of Lean Manufacturing

An exhaustive case study of Lean Manufacturing
CHAPTER-1
INTRODUCTION
1.1 Background This research addresses the application of lean manufacturing concepts to the continuous production/ process sector. After World War II, Japanese manufacturers, particularly in the automotive industry, were faced with the dilemma of shortages of material, financial, and human resources. Eiji Toyoda and Taiichi Ohno at the Toyota Motor Company in Japan pioneered the concept of the Toyota Production System, or what is known today in the US as Lean Manufacturing. The basic idea behind the system is eliminating waste. Waste is defined as anything that does not add value to the end product from the customers perspective. The primary objective of lean manufacturing is to assist manufacturers who have a desire to improve their companys operations and become more competitive through the implementation of different lean manufacturing tools and techniques. Quickly following the success of lean manufacturing in Japan, other companies and industries, particularly in the US, copied this remarkable system .The term lean as Womackand Jones (1994 ) define it denotes a system that utilizes less ,in terms of all inputs, to create the same outputs as those created by a tradition mass production system, while contributing increased varieties for the end customer Lean is to manufacture only what is needed by the customer, when it is needed and in the quantities ordered. The manufacture of goods is done in a way that minimizes the time taken to deliver the finished goods, the amount of labor required, and the floor-space required, and it is done with the highest quality, and usually, at the lowest cost.
M.E. Department SRMGPC, lucknow
1.2 Problem Statement Major businesses in the India have been trying to adopt new business initiatives in order to stay alive in the new competitive market place. Lean manufacturing is one of these initiatives that focus on cost reduction by eliminating non-value added activities. These tools and techniques of lean manufacturing have been widely used in the discrete industry starting with the introduction of the original Toyota Production System. Tools including just in time, cellular manufacturing, total productive maintenance, singleminute exchange of dies, and production smoothing have been widely used in discrete parts manufacturing sectors such as automotive, electronic and appliance manufacturing. Applications of lean manufacturing to the continuous process industry have been far fewer Inpart , it has been argued that this is because such industries are inherently more efficient and present relatively less need for such improvement activities Managers have also been hesitant to adopt lean manufacturing because of tools and techniques to the continuous process industry
reason such has high volume and low variety products, large inflexible machines, and the long setup times that characterize the process industry. As an example, it is difficult to use the cellular manufacturing concept in a process facility due to the fact that equipment is large and not easy to move. While it seems that some lean manufacturing tools are difficult to adapt in the process industry, others are not .For example, This project is driven by the fact that while researchers and practitioners have widely used lean manufacturing tools in the discrete industry, nobody has systematically investigated how to
apply lean tools and techniques to a continuous process facility due to the differences exhibited between the two manufacturing environments. In order to compete in todays global competitive market the continuous process industry also needs to look for more ways to gain a competitive edge. 1.3 Project Objective The goal of this research is to investigate how the tools of lean manufacturing can be adapted from the discrete to the continuous manufacturing environment and to evaluate their benefits at a specific industrial concern and then to apply in the workshop of S.R.M.G.P.C. . Although the process and discrete industry share several common characteristics, there are also areas where they are very different. Both manufacturing settings have overlap, but at the extreme, each has its unique characteristics. The objective is to look at commonalities between discrete and continuous manufacturing where lean techniques from the discrete side are directly applicable, and to also examine ways to do so in other areas where this may not be quite so straightforward. The objective is to systematically demonstrate how lean manufacturing tools when used appropriately can help the process industry to eliminate waste, have better inventory control, better product quality, and better overall financial and operational procedures. In this research the S.R.M.G.P.C workshop will be used to represent the continuous process industry, and much of the work will be carried out at an actual production facility.
1.4 Project Approach The initial step in this research is to systematically study and define the history of the lean manufacturing concept and its different tools and techniques. It will then examine where most of the lean tools and techniques have been used. This will be followed by a literature review of the process industry and a study of the findings regarding applications of lean concepts to continuous manufacturing, and the Hindustan Aeronautics Limited in particular. The next step is to develop the continuous process industry with respect to its product/process characteristics and the relative balance of discrete and continuous operations. This taxonomy is used to contrast the process industry and to characterize the process industry into distinguishable groups. Next, this is used to examine and identify specific lean manufacturing tools and techniques that could be applicable. To study the effect of lean tools in the process sector the Hindustan Aeronautics Limited is used to illustrate the procedures of implementing lean tools at a process facility. Firstly this is used to identify sources of waste and then identify lean tools to try to reduce this waste then develop a system with lean tools applied to it. Secondly, a simulation model is developed to quantify the benefits gained from using lean tools and techniques.
CHAPTER-2
LITERATURE REVIEW
2.1 The History of Lean After World War II Japanese manufacturers were faced with the dilemma of vast shortages of material, financial, and human resources The problems that Japanese manufacturers were faced with differed from those of their Western counterparts. These conditions resulted in the birth of the lean manufacturing concept Toyota Motor Company, led by Its president Toyoda recognized that American automakers of that era were out producing their Japanese counterparts; in the mid 1940s American companies were outperforming their Japanese counterparts by a factor of ten In order to make a move toward improvement early Japanese leaders such as Toyoda Kiichiro, Shigeo Shingo ,and Taiichi Ohnodevised a new, disciplined, process oriented system, which is known today as the Toyota Production System, or Lean Manufacturing., who was given the task of developing as system that would enhance productivity at Toyota is generally considered to be the primary force behind this system. Ohno drew upon some ideas from the West, and particularly from Henry Fords book Today and Tomorrow. Fords moving assembly line of continuously flowing material formed the basis for the Toyota Production System After some experimentation, the Toyota Production System was developed and refined between 1945 and 1970, and is still growing today all over the world. The basic underlying idea of this system is to minimize the consumption of resources that add no value to a product.
In order to compete in todays fiercely competitive market, US
manufacturers have come to realize that the traditional mass production concept has to be adapted to the new ideas of lean manufacturing. A study that was done at the Massachusetts Institute of Technology of the movement from mass production toward lean manufacturing, as explained in the book The Machine That Changed the World (Womack, Jonesand Ross, 1990), awoke the US manufacturers from their sleep. The study underscored the great success of Toyota at NUMMI (New United Motor Manufacturing Inc.) and brought out the huge gap that existed between the Japanese and Western automotive industry. The ideas came to be adopted in the US because the Japanese companies developed, produced and distributed products with half or less human effort, capital investment, floor space, tools, materials, time, and overall expense(Womacketal.,1990) 2.2 What is Lean Manufacturing ? Much as mass production was the production system of the 20th century, lean manufacturing, which focuses on the elimination of waste in the production process, has heralded as the production system of the 21st century. Although the Japanese automaker Toyota pioneered the coined in concept, the term lean manufacturing itself was Institute of Technology. been
the early 1990s by three researchers from the Massachusetts The National Institute of Standards and Technology (NIST) Manufacturing Extension Partnerships Lean Network offers the following definition of lean manufacturing: A systematic approach to identifying and eliminating waste through continuous improvement, flowing the product at the pull of the customer in pursuit of perfection. Although the definition can be brief, it is packed with information .First,
the approach to becoming lean must be systematic. You can try to improve certain areas of the business and have some lean, you degree of success, but to truly realize the benefits of
must start with an overall strategy and put it into place in the right order. Second, a lean strategy focuses on eliminating waste. Later in this paper, we will learn about common types of waste and the methods used to identify and eliminate them. Third, it is important to note the phrases continuous improvement and pursuit of perfection. Perfection can never be achieved, but each step closer increases the profitability and viability of the company. The process of developing a lean enterprise never ends. Lean is not a destination but a journey. There is always something else that you can do to reduce waste or improve a process. 2.3 What Is Lean? The new uprising in the manufacturing goods and service sector has created great challenges for US industry. The customer driven and highly competitive market has rendered the old-fashioned managerial style an inadequate tool to cope with these challenges. These factors present a big challenge to companies to look for new tools to continue moving up the ladder in a global, competitive, growing market. While some companies continue to grow based on economic constancy, other companies struggle because of their lack of understanding of the change of customer mind-sets and cost practices. To get out of this situation and to become more profitable, many manufacturers have started to turn to lean manufacturing principles to elevate the performance of their firms. The basic ideas behind the lean manufacturing system, which have been practiced for many years in Japan, are waste elimination,
cost reduction, and employee empowerment. The Japanese philosophy of doing business is totally different than the philosophy that has been long prevalent in the US. The traditional belief in the west had been that the only way to make profit is to add it to the manufacturing cost in order to come up with a desired selling price. On the contrary, the Japanese approach believes that customers are the generator of the selling price. The more quality one builds into the product and the more service one offers, the more the price that customers will pay. The difference between the cost of the product and this price is what determines the profit. The lean manufacturing discipline is to work in every facet for eliminating waste in order to reduce cost, generate capital, bring in more sales, and remain competitive in a growing global market. The value stream is defined as the specific activities within a supply chain required to design, order and provide a specific product or value. The term lean, as Womack and his colleagues defined, denotes a system that utilizes less, in term of all inputs, to create the same outputs as those created by a traditional mass production system, while contributing increased varieties for the end customer (Panizzolo, 1998). This business philosophy goes by different names Just-in-time manufacturing, world class manufacturing, and continuous flow are all terms that are used in parallel with lean manufacturing. So the resounding principle of lean manufacturing is to reduce cost through continuous improvement that will eventually reduce the cost of services and products, thus growing more profits. Lean focuses on abolishing or reducing wastes (or muda, the Japanese word for waste) and on maximizing or fully utilizing activities that add value from the customers perspective. From the customers perspective, value is equivalent to anything that the customer is willing to pay for in a product or the service that
follows. So the elimination of waste is the basic principle of lean manufacturing. For industrial companies, this could involve any of the following (Womack et al., 1990; Ohno, 1997; Monden, 1998; Shingo, 1997; Mid-America Manufacturing Technology Center, 2000): Material: Convert all raw materials into end products. Try to avoid excess raw materials and scrap. Inventory: Keep constant flow to the customer and to not have idle material. Overproduction: Produce the exact quantity that customers need, and when they need it. Labor: Get rid of unwarranted movement of people. Complexity: Try to solve problems the uncomplicated way rather than the complex way. Complex solutions tend to produce more waste and are harder for people to manage Energy: Utilize equipment and people in the most productive ways Avoid unproductive operations and excess power utilization. Space: Reorganize equipment, people, and workstations to get a better space arrangement. Defects: Make every effort to eliminate defects. Transportation: Get rid of transportation of materials and information that does not add value to the product. Time: Avoid long setups, delays, and unexpected machine downtime. Unnecessary Motion: Avoid excessive bending or stretching and frequently lost items.
Waste sources are all related to each other and getting rid of one source of waste can lead to either elimination of, or reduction in others. Perhaps the most significant source of waste is inventory. Work-in-process and finished parts inventory do not add value to a product and they should be eliminated or reduced. When inventory is reduced, hidden problems can appear and action can be taken immediately. There are many ways to reduce the amount of inventory, one of which is reducing production lot sizes. Reducing lot sizes however, should be followed by a setup time reduction so as to make the cost per unit constant as the famous economic order quantity formula states. At Toyota, Shingo developed the concept of single minute exchange of reduce set up times (Shingo, 1997); for instance, setup times in large punch presses could be reduced from hours to less than ten minutes. This has a big effect on reducing lot sizes. Another way to reduce inventory is by trying to minimize machine downtime (Shingo, 1997). This can be done by preventive maintenance. It is clear that when inventory is reduced other sources of waste are reduced too. For example, space that was used to keep inventory can be utilized for other things such as to increase facility capacity. Also, reduction in setup times as a means to reduce inventory simultaneously saves time, thus is reducing time as a source of waste. Transportation time is another source of waste. Moving parts from one end of the facility to another end does not add value to the product. Thus, it is important to decrease transportation times within the manufacturing process. One way to do this is to utilize a cellular manufacturing lay out to ensure a continuous flow of the product. This also helps eliminate one other source of waste, which is energy. When machines and people are grouped into cells, unproductive operations can be minimized because a group of people can be fully dedicated to that cell and this avoids excess human utilization.
M.E. Department SRMGPC, lucknow 10
Another source of waste is defects and scrap materials . Total productive maintenance is one way to eliminate defects and scrap Manufacturing parts that are fault-free from the beginning has profound consequences for productivity (Hayes and Clark, 1986). There is no question that the elimination of waste is an essential ingredient for survival in todays manufacturing world. Companies must strive to create high-quality, and low cost products that can reach the customers in the shortest time possible. at least reduce the sources of waste. There are sets of tools that were developed at Toyota and that can be utilized to eliminate or
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CHAPTER-3
TOOLS AND TECHNIQUES OF LEAN MANUFACTURING

Once companies pinpoint the major sources of waste, tools such as continuous improvement, just-in-time production, production smoothing, and others will guide companies brief description of such tools is given. 3.1 Cellular Manufacturing Cellular manufacturing is one of the cornerstones when one wants to become lean. Cellular manufacturing is a concept that increases the mix of products with the minimum waste possible. A cell consists of equipment and work-stations that are arranged in an order that maintains a smooth flow of materials and components through the process. It also has assigned operators who are qualified and trained to work at that cell. Arranging people and equipment into cells has great advantage in terms of achieving lean goals. One of the advantages of cells is the one-piece flow concept, which states that each product moves through the process one unit at a time without sudden interruption, at a pace determined by the customers need. Extending the product mix is another advantage of cellular manufacturing. When customers demand a high variety of products as well as faster delivery rates, it is important to have flexibility in the process to accommodate their needs. This flexibility can be achieved through grouping similar products into families that can be processed on the
through
corrective actions so as to eliminate waste. In the following sections a
same equipment in the same sequence. This will also shorten the time required for changeover between products, which will encourage production in smaller lots. Other benefits associated with cellular manufacturing include: Inventory reduction. Reduced transport and material handling. Better space utilization. Lead time reduction. Identification of causes of defects and machine problems. Improved productivity. Enhanced teamwork and communication. Enhanced flexibility and visibility 3.2 Kaizen(Continuous Improvement) Kaizen(Continuous improvement) is another fundamental principle of lean manufacturing. It is a systematic approach to gradual, orderly, continuous improvement. In manufacturing settings improvements can take place in many forms such as reduction of inventory, and reduction of defective parts. The first deals with moving those items that are not currently being used on a continuous basis (e.g., items that will not be used for the next month or so) away from those that are. Moving those items and tossing away needless items will make material flow smoothly, and workers move and work easily (Feld, 2000) This will make it easier to move those items that are not
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labeled from that area. Arranging items in the right place will make tools, jigs, fixtures, and resources noticeable, detectable, and easy to use (Feld, 2000). It deals with cleaning and sweeping the work place methodically. The workplace should look neat and clean and ready to use for the next shift. The work place should be maintained on a regular basis (e.g., daily). All tools and items should be in the right place and nothing should be missing. A wellmaintained workplace creates a healthy environment to work with (Feld, 2000). It is also maintaining a high standard of house-keeping and workplace arrangement. If every area has people assigned to it then everyone has responsibility to maintain a high standard of housekeeping and cleaning (Feld, 2000). It is managements accountability to train people to follow housekeeping rules. Management should implement the housekeeping rules in a practiced fashion so that their people can adjust themselves accordingly. Management should keep surveying the shop floor, explain what they want from people, reward those who follow and instruct those who do not (Feld, 2000) .
KAIZEN EVENT MTHODOLGY
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KAIZEN EVENT MTHODOLGY

Identif Document Reality y
Poi s
Apply the tools

Solution s
Make this Lock in the the new standard new standard
Waste Root Causes
Go to Gemba Observe Use the tools
Waste Elimination
Standard work
Visual controls
Continuous Improvement: Do it again!
Fig 3.1 3.3 Standardization of Work A very important principle of waste elimination is the standardization of worker actions Standardized work basically ensures that each job is organized and is carried out in the most effective manner. No matter who is doing the job the same level of quality should be achieved. At Toyota every worker follows the same processing steps all the time. This includes the time needed to finish a job, the order of steps to follow for each job, and the parts on hand By doing this one ensures that line balancing is achieved, unwarranted work-in-process inventory is
minimized and
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non-value added activities are reduced. 3.4 Total Productive Maintenance Machine breakdown is one of the most important issues that concern the people on the shop floor. The reliability of the equipment on the shop floor is very important since if one machine breaks down the entire production line could go down. An important tool that is necessary to account for sudden machine break downs is total productive maintenance In almost any lean environment setting a total productive maintenance program is very important. There are three main components of a total productive maintenance program preventive maintenance, correctivemaintenance, and maintenance prevention. Preventive maintenance has to do with regular planned maintenance on all equipment rather than random check ups. Workers have to carry out regular equipment maintenance to detect any anomalies as they occur. By doing so sudden machines breakdown can be prevented, which leads to improvement in the throughput of each machine. Corrective maintenance deals with decisions such as whether to fix or buy new equipment. If a machine is always down and its components are always breaking down then it is better to replace those parts with newer ones. As a result the machine will last longer and its uptime will be higher. Maintenance prevention has to do with buying the right machine. If a machine is hard to maintain (e.g., hard to lubricate or bolts are hard to tighten) then workers will be reluctant to maintain the machine on a regular basis, which will result in a huge amount of lost money invested in that machine.
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3.5 5 S There are no world class manufacturing companies without the 5 Ss in place. The 5 Ss provide the foundation for any manufacturing business wishing to start along the path of Continuous Improvement. The 5 Ss provide a structure for supporting Productivity, Quality and Health & Safety. The 5 Ss fosters a sense of genuine pride and personal ownership in the work environment. The 5 Ss form a common sense approach to a better working environment. The 5 Ss are based on 5 Japanese words; these have been translated into 5 English equivalents. First S refers to Sort for Japanese word Seiri, it means to determine which materials are necessary in the area. Second S refers to Straighten for Japanese word Seiton, it means to remove unnecessary items from the workplace. Third S refers to Sweep for Japanese word Seiso, it means to clean up the workplace & perform routine maintenance. Fourth S refers to Standardise for Japanese word Seiketsu, it means to have a place for everything or to have everything in its place. Fifth S refers to Self Discipline for Japanese word Shitsuke, it means making the previous 4 Ss part of every day life and sustainable, and to promote a self disciplined culture.
Fig.3.2
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3.5.1 Introduction 5S is a system to reduce waste and optimize productivity through maintaining an orderly workplace and using visual cues to achieve more consistent operational results. Implementation of this method cleans up and organizes the workplace basically in its existing configuration, and it is typically the first lean method which organizations implement. The 5S pillars, Sort (Seiri), Set in Order (Seiton), Shine (Seiso), Standardize (Seiketsu), and Sustain (Shitsuke), provide a methodology for organizing, cleaning, developing, and sustaining a productive work environment. In the daily work of a company, routines that maintain organization and orderliness are essential to a smooth and efficient flow of activities. This lean method encourages workers to improve their working conditions and helps them to learn to reduce waste, unplanned downtime, and in-process inventory. A typical 5S implementation would result in significant reductions in the square footage of space needed for existing operations. It also would result in the organization of tools and materials into labeled and color coded storage locations, as well as kits that contain just what is needed to perform a task. 5S provides the foundation on which other lean methods, such as TPM, cellular manufacturing, just-in-time production, and six sigma can be introduced. 3.5.2 Method and Implementation Approach 5S is a cyclical methodology: sort, set in order, shine, standardize, sustain the cycle. This results in continuous improvement.
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3.5.3 The 5S Pillars 3.5.3.1. Sort Sort, the first S, focuses on eliminating unnecessary items from the workplace that are not needed for current production operations. An effective visual method to identify these unneeded items is called red tagging, which involves evaluating the necessity of each item in a work area and dealing with it appropriately. A red tag is placed on all items that are not important for operations or that are not in the proper location or quantity. Once the red tag items are identified, these items are then moved to a central holding area for subsequent disposal, recycling, or reassignment. Organizations often find that sorting enables them to reclaim valuable floor space and eliminate such things as broken tools, scrap, and excess raw material. 3.5.3.2. Set In Order Set In Order focuses on creating efficient and effective storage methods to arrange items so that they are easy to use and to label them so that they are easy to find and put away. Set in Order can only be implemented once the first pillar, Sort, has cleared the work area of unneeded items. Strategies for effective Set In Order include painting floors, affixing labels and placards to designate proper storage locations and methods, outlining work areas and locations, and installing modular shelving and cabinets. 3.5.3.3 Shine Once the clutter that has been clogging the work areas is eliminated and remaining items are organized, the next step is to thoroughly clean the work area. Daily follow-up cleaning is necessary to sustain this improvement. Working in a clean environment enables workers to notice malfunctions in equipment such as leaks, vibrations, breakages, and misalignments. These changes, if left unattended, could
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lead to equipment failure and loss of production. Organizations often establish Shine targets, assignments, methods, and tools before beginning the shine pillar. 3.5.3.4 Standardize Once the first three 5Ss have been implemented, the next pillar is to standardize the best practices in the work area. Standardize, the method to maintain the first three pillars, creates a consistent approach with which tasks and procedures are done. The three steps in this process are assigning 5S (Sort, Set in Order, Shine) job responsibilities, integrating 5S duties into regular work duties, and checking on the maintenance of 5S. Some of the tools used in standardizing the 5S procedures are: job cycle charts, visual cues (e.g., signs, placards, display scoreboards), scheduling of five-minute 5S periods, and check lists. The second part of Standardize is prevention preventing accumulation of unneeded items, preventing procedures from breaking down, and preventing equipment and materials from getting dirty. 3.5.3.5 Sustain Sustain, making a habit of properly maintaining correct procedures, is often the most difficult S to implement and achieve. Changing entrenched behaviors can be difficult, and the tendency is often to return to the status quo and the comfort zone of the old way of doing things. Sustain focuses on defining a new status quo and standard of work place organization. Without the Sustain pillar the achievements of the other pillars will not last long. Tools for sustaining 5S include signs and posters, newsletters, pocket manuals, team and management check-ins, performance reviews, and department tours. Organizations typically seek to reinforce 5S messages in multiple formats until it becomes the way things are done.
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3.5.4 Potential Benefits Painting the machines and the equipment light colors and cleaning the windows, often done under the Shine pillar, decreases energy needs associated with lighting. Painting and cleaning makes it easier for workers to notice spills or leaks quickly, thereby decreasing spill response. This can significantly reduce waste generation from spills and clean-up. The removal of obstacles and the marking of main thoroughfares decreases the potential of accidents that could lead to spills and associated hazardous waste generation (e.g., spilled material, absorbent pads and clean up materials). Regular cleaning, as part of the Shine pillar, decreases the accumulation of cuttings, shavings, dirt, and other substances that can contaminate production processes and result in defects. Reduction in defects has significant environmental benefits (e.g., avoided materials, wastes, and energy needed to produce the defective output; avoided need to dispose of defective output) 5S implementation can significant reduce the square footage needed for operations by organizing and disposing of unused equipment and supplies. Less storage space decreases energy needed to heat and light the space. Organizing equipment, parts, and materials so they are easy to find can significantly reduce unneeded consumption. Employees are more likely to finish one batch of chemicals or materials before opening or ordering more, resulting in less chemicals or materials expiring and needing disposal. 5S visual cues (e.g., signs, placards, scoreboards, laminated
procedures in workstations) can be used to raise employee understanding of proper waste handling and management procedures, as well as workplace hazards and appropriate emergency response procedures. 5S techniques can be used to improve labeling of hazardous materials and wastes. In addition, environmental procedures often are separate from operating procedures, and they are not easily accessible to the workstation. 5S implementation often result is easy to read, laminated procedures located in workstations. Integration with 5S visual cues and operating procedures can improve employee environmental management. 3.5.5PotentialShortcomings Regularly painting and cleaning machines and equipment could lead to increased use of paints and cleaning supplies. Paints and cleaning supplies may contain solvents and/or chemicals that can result in air emissions or increased waste generation. Disposing of unneeded equipment and supplies creates a shortterm surge in waste generation. In some cases, there may be unlabeled wastes that could be hazardous. Failure to involve environmental personnel in waste handling could result in some wastes being disposed improperly or in lost opportunities for reclamation or recycling.
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Fig 3.3 3.6 From Lean Manufacturing to Lean Enterprise The elimination of waste is a process that examines the system as a whole .The big picture is to look at the interdependent segments of the company starting from raw materials to distribution and sales of finished goods. The lean enterprise can be defined as a group of
individuals, functions, and legally separate but operationally synchronized companies. By managing the whole system we are looking to manage the value adding activities holistically and not as a sum of separate parts. Making of an enterprise lean means that workers, managers, suppliers, and customers are all considered
as powerful assets of the company. Managers have recognized that in order to deliver to the customer satisfaction and the best quality product, the organization must focus on the critical main processes rather than concentrating on individual functions or departments These processes should serve two main objectives. The first is to make the customer believe in the organization as a qualified provider of a product, and the second is to demonstrate a capability that will win an order. To accomplish this, companies and managers should put more efforts to elevate the whole enterprise as opposed to focusing on the performance of persons, functions, and parts of the company. Lean enterprise is an extension of lean manufacturing. However, lean enterprise goes further by concentrating on the firm, its employees, its partners, and its suppliers, to bring value to the customer from his or her perspective. The lean enterprise tries to line up and coordinate the value creating process for a finished product or service along the value stream. It tries to thoroughly examine all the steps that are needed to bring a new product or service from idea to production, from order to delivery, and from raw material to final delivered product. These steps can be perfectly accomplished by including all parties involved. All processes are continually examined against the customer's definition of value, and non-value added activities and waste are forcefully and methodically eliminated. There are three different types of activities that exist in almost all organization:
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3.6.1 Value adding activities:

These include all the activities that the customer envisions as valuable either in a product or as a service. Examples include converting iron ore (with other things) into cars, forging raw material, and painting a car body. To define a value adding activity, one should ask if a customer would be willing to pay for the activity.
3.6.2 Necessary non-value adding activities:

These are activities that in the eye of the final customer do not make a product or service more valuable but are necessary under the current operating conditions. Such waste is difficult to remove immediately and should be targeted for longer-term change. Examples include walking long distances to pick up parts, or unpacking vendor boxes. These can be removed by changing the current layout of a line or organizing vendor items to be delivered unpacked.
3.6.3 Unnecessary non-value adding activities:

These include all the activities that the customer envisions as not valuable either in a product or as a service, and are also not necessary under the current circumstances. These activities are pure waste and should be targeted for immediate removal. Examples include waiting time, stacking of products and double transfers. There are a lot of companies that are implementing lean manufacturing. However, many of these are still coping with mastering the idea due a lack of understanding of its core concepts. So it might seem that when companies are still not capable of lean manufacturing they should not even look ahead to a lean enterprise.
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3.7 Supply Chain Management

The greater expectation of customers, the fierce competitive market and the flow of materials to the market with shorter lead-times have forced many companies to focus more on their supply chain management. A typical supply chain consists of raw material suppliers, manufacturers, distributors, and end facility customers. Raw materials are shipped to the production
where they get converted to end-products and then those end-products are shipped to the end users (customers). In order to minimize cost and waste throughout the system, effective materials and finishing with the end customer. Supply chain management is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed in the right quantities, to the right locations, and at the right time. In order to become lean, a company must have an integrated supply chain starting from the front (suppliers), through the middle manufacturers and distributors), to the end(customers).Thus total cost and waste starting from transportation and distribution to raw material, work in process, and finished goods must all be minimized. supply chain management and integration are required starting from the raw
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CHAPTER-4
Application of Lean in the workshop of S.R.M.G.P.C

Lean is applied using 5 S under Kaizen and very satisfying results has been obtained. Kaizen sheets have been attached and photographs have been taken which are shown below. 4.1 Red tagging Firstly we have studies the whole area of the workshop and the areas containing the waste and that can be used for other purpose have been red tagged.
fig 4.1
fig 4.2
Fig 4.3
fig 4.4
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4.2 Kaizen Sheets MECHANICAL WOKSHOP SRMGPC, Lucknow

KAIZEN EVENT SCOPE SHEET 1:Event Description: Red tagging of all the unwanted items/ wastes and their removal. Preliminary Objective: 1. Keeping only the required items in workshop. 2. Quick retrieval of all the jobs and work pieces. 3. Providing a data of all the items which are of some
significance in other departments, 4. Locating wastes and their removal. Event Time: - 4 to 9 April 2011. Team Meeting Area: CAD Lab Team Leader: Aman Sharan
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Team Members: 1. Prof. D.V. Mahendru 2. Prof. A.K. Srivastava 3. Prof. Agnihotri 4. Mr. Dinesh 5. Animesh Pratap Singh Current Situation and Problems: 1. Accumulation of unnecessary wastes. 2. Corroded and out of order Projects of previous years. 3. Scrap bags. 4. Untidy workshop.
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TARGET ACHIEVEMENT SHEET
Sl No .
Measure s
Present
Targ et
Achieve d
Improve ment
1.
Information Retrieval Time( Online through ERP)
300 seconds
15 second s
30 seconds
90 %
2.
Man Movement
140 meters
70 meters
90 meters
35.71%
3.
5 S Level
0.016
0.3
0.28
165 %
table 1
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TO DO STATISTICS
TOTAL OPENED
TOTAL CLOSED PENDING
TO DO LIST (EVENT)
TO- DO LIST ( CHANGED)
Table 2
KEY ACHIEVEMENT
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ONLINE DATA IMPROVEMENT
1. Improvement in online records. 2. Placement of right things at their right locations. 3. Provision of lot of space by removal of wastes to function 5S. 4. Accumulation of wastes to make a sell out to enhance funds.
5 S 1. Approx. two trolley of MUDA removed. 2. Awareness of 5 S amongst employees created.
MECHANICAL WOKSHOP
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SRMGPC, Lucknow
KAIZEN EVENT SCOPE SHEET -2 Event Description: Sorting out the raw material for various jobs being done in workshop and their arrangement. Preliminary Objective: 1. Locating the raw materials for various jobs. 2. Arranging work pieces in such a way to have minimum loss of material. 3. Removal of wastes resulting from this operation. 4. Locating wastes and their removal. 5. Sorting of raw material according to their importance. Event Time: 11 to 16 April 2011. Team Meeting Area: CAD Lab Team Leader: Animesh Pratap Singh
Team Members: 1. Prof. D.V. Mahendru

2. Prof. A.K. Srivastava 3. Prof. Agnihotri 4. Mr. Dinesh 5. Aman Sharan Current Situation and Problems: 1. Accumulation of unnecessary wastes. 2. Procurement of raw materials for work pieces is a tidy affair. 3. No provision of sudden work piece requirement. 4. No particular inventory space for items.
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Table 3
Sl No.
Measures
Present
Target
Achieved
Improve ment
Mild Steel Rod Wastage of Raw Materials (Kgs.) 1).(-10mm):7.85 2).(-20mm):11.67 3).( 50mm):-22.30 Pine Wood Stock:-2.84 Mild Steel Sheet:-.875
Mild Steel Rod 1).(10mm):-1 2).(20mm):-2.5 3).( 50mm):-4.0 Pine Wood Stock:-0.00 Mild Steel Sheet:-0.00
Mild Steel Rod 1).(10mm):2.36 2).(20mm):3.58 3).( 50mm):8.32 Pine Wood Stock:-0.24 Mild Steel Sheet:-0.00 90 %
1.
2.
Man Movement (meters)
70 meters
20 meters
40 meters
42.85%
3.
5 S Level
0.28
0.5
0.40
42.85 %
35
TO DO STATISTICS
TOTAL OPENED
TO DO LIST (EVENT)
Table 4
36
KEY ACHIEVEMENT
ONLINE DATA IMPROVEMENT
1. Improvement in online records. 2. Placement of right things at their right locations. 3. Provision of lot of space by removal of wastes to function 5S. 4. Accumulation of wastes to make a sell out to enhance funds.
5 S
1. Approx. five trolley and one mini truck of MUDA removed. 2. Awareness of 5 S amongst employees created. 3. Section of Quarantined Items has been defined.
37
MECHANICAL WOKSHOP SRMGPC, Lucknow

KAIZEN EVENT SCOPE SHEET -3 Event Description: Straightening out the raw material for various jobs being done in workshop and their arrangement. Preliminary Objective: 1. Arranging work pieces in such a way to have minimum loss of material. 2. Removal of wastes resulting from this operation. 3. Locating of area for placing the raw material in order to have minimum Man Movement. 4. Sorting of raw material according to their importance. 5. Fast retrieval of Work piece for making jobs Event Time: 18 to 23 April 2011. Team Meeting Area: CAD Lab Team Leader: Aman Sharan
38
Team Members: 1. Prof. D.V. Mahendru 2. Prof. A.K. Srivastava 3. Prof. Agnihotri 4. Mr. Dinesh 5. Animesh Pratap Singh Current Situation and Problems: 1. Procurement of raw materials for work pieces is a tidy affair. 2. No provision of sudden work piece requirement. 3. No particular inventory space for items. 4. No Provision of fast retrieval.
39
Sl No.
Measures
Present
Target
Achieved
Improve ment
1.
40 meters
15 meters
20 meters
50.00%
2.
5 S Level
0.40
0.70
0.66
65 %
Table 5 TO DO STATISTICS
TOTAL OPENED
TO DO LIST (EVENT)
Table 6
40
KEY ACHIEVEMENT ONLINE DATA IMPROVEMENT 1. Improvement in online records. 2. Placement of right things at their right locations. 3. Provision of lot of space by removal of wastes to function 5S. 4. Accumulation of quarantined items to use them when in shortage of raw material.
5 S 1. Approx. one trolley of MUDA removed. 2. Awareness of 5 S amongst employees created. 3. Straightening and sorting has been achieved to a satisfactory level.
41

KAIZEN EVENT SCOPE SHEET -4 Event Description: Standardization of various jobs being
done in workshop and their arrangement. Preliminary Objective: 1. Arranging work pieces in such a way to have minimum loss of material. 2. Allocation of persons for checking the placing the raw material remains maintained in that order only in which it was set last week. 3. Standardizing the fast retrieval of Work piece for making jobs Event Time: 25 to 30 April 2011. Team Meeting Area: CAD Lab Team Leader: Animesh Pratap Singh
42
Team Members: 1. Prof. D.V. Mahendru 2. Prof. A.K. Srivastava 3. Prof. Agnihotri 4. Mr. Dinesh 5. Aman Sharan Current Situation and Problems: 1. Standardization Procurement of raw materials for work pieces is a tidy affair. 2. No Standardization of provision of sudden work piece requirement. 3. No Standardization of particular inventory space for items. 4. No Standardization of Provision of fast retrieval.
43
Sl No.
Measures
Present
Target
Achieved
Improve ment
1.
70 meters
20 meters
40 meters
42.85%
2.
5 S Level
0.66
0.80
0.72
9.09 %
TOTAL OPENED
TO DO LIST (EVENT)
TO- DO LIST (CHANGED)
15
15
Table 8
44
KEY ACHIEVEMENT ONLINE DATA IMPROVEMENT 1. Standardization of online records. 2. Standardization in placement of right things at their right locations. 3. Accumulation of wastes to make a sell out to enhance funds.
5 S 1. Awareness of 5 S amongst employees created. 2. Standardization of activities has achieved to a satisfactory level.
45

KAIZEN EVENT SCOPE SHEET -5 Event Description: Sustaining various changes done in the newly configured workshop. Preliminary Objective: 1. Sustaining the location of the raw materials for various jobs. 2. Sustaining the arrangement of work pieces in such a way to have minimum loss of material. 3. Sustaining the removal of wastes resulting from different operations. 4. Sustaining the locating of wastes and their removal. 5. Sustaining the sorting of raw material according to their importance. Event Time: 2 to 6 May 2011. Team Meeting Area: CAD Lab Team Leader: Aman Sharan
46
Team Members: 1. Prof. D.V. Mahendru 2. Prof. A.K. Srivastava 3. Prof. Agnihotri 4. Mr. Dinesh 5. Animesh Pratap Singh
Current Situation and Problems: 1. Sustaining the standardization of procurement of raw materials for work pieces. 2. Sustaining the standardization of provision of sudden work piece requirement. 3. Sustaining the standardization of particular inventory space for items. 4. Sustaining the standardization of Provision of fast retrieval.
47
Sl No.
Measures
Present
Target
Achieved
Improv ement
1.
5 S Level
0.72
1.00
0.80
11.11 %
TOTAL OPENED
TO DO LIST (EVENT)
Table 10
48
KEY ACHIEVEMENT ONLINE DATA IMPROVEMENT 1. Sustaining the standardization of online records. 2. Sustaining the standardization in placement of right things at their right locations. 3. Sustaining the accumulation of wastes to make a sell out to enhance funds. 5 S 1. Awareness of 5 S amongst employees created. 2. Sustaining the standardization of activities has achieved to a satisfactory level. 3. Mass campaigning of Lean Manufacturing Techniques. 4. Use of Posters and Flexes. 5. Shortage Chart.
49
Chapter 5 RESULTS
Highly satisfying results have been obtained that are detailed through data and pictures given below.
1.
Removal of waste of mass about 1190 kilograms have
been removed and sold at the rate of Rs.21/kg and total amount of Rs24,990 have been accrued.
2.
The site is used for maintaining the inventory which is
used for making the jobs of different shops that are

Mild steel rod(=10mm) for Smithy shop. Mild steel rod(=20mm) for Machine shop. Mild steel rod(=50mm) for Milling shop Pine wood Log for Carpentry shop Mild Steel Sheet for Welding shop. 3. Proper Placement of Quarantined Items has also been done.
50
Site before application of lean;
fig 5.1
fig 5.2
fig 5.3
fig 5.4
fig 5.5
51
Site after application of lean:
fig 5.6
fig 5.7
fig 5.8
fig 5.9
52
fig 5.10
fig 5.11
fig 5.12
53
REFERENCES
Cochran, D.S., The Design and Control of
Manufacturing Systems, Ph.D. Dissertation, Auburn, 1994 Burbidge, J.L., Principles of Production Control, London, Macdonald and Evans, 1962. Burbidge, J.L., The introduction of group technology, New York, Wiley, 1975 . Drucker, P.F. Managing the Future, New York, NY, Dutton Press, 1992 . Forrester, J.W., Industrial Dynamics, Cambridge, MA, The M.I.T. Press, 1965 Forrester, J.W., Principles of Systems, Cambridge, MA, Wright-Allen Press,1968. Poka-yoke Improving Product Quality by
Preventing Defects, Portland OR, Productivity Press, 1988. Toyota Production System, Atlanta, GA, Industrial Engineering and Management Press, 1983. Introduction to TPM Total Productive Maintenance, Portland OR, Productivity Press, 1988 Toyota Production System- Beyond Large Scale Production, Portland OR, Productivity Press, 1988 Single Piece Flow, Cambridge, Productivity Press, 1990
54
P.M., Sterman, J.D., Systems thinking and organizational learning: Acting locally and thinking globally in the organization of the future, European Journal of Operational Research, 59 pp.137-150, 92 The Press, 1992 Shingo, S., Zero Quality Control: Source Inspection and the Poka-yoke System, Cambridge, MA, Productivity Press, 1986 Shingo, S., A Revolution in Manufacturing: The SMED System, Cambridge, MA, Productivity Press, 1985 Smith, D. A., Quick Die Exchange, Dearborn, MI, S.M.E., 1991 Suh, N., The Principles of Design, New York, Oxford Press, 1990 Shingo Production Management System-
Improving Process Functions, Cambridge, MA, Productivity
Cellular Manufacturing Black, J.T., Chen, J.C., Decoupler-improved Output of an Apparel Assembly Cell, The Journal of Applied Manufacturing Systems, Winter, pp. 47-58, 1994 Cheng, C.-H., Madan, M.S., Motwanis, J., Designing cellular manufacturing systems by a truncated tree search, International Journal of Production Research, vol. 34, no. 2, pp. 349-361, 1996
55
Noaker, Manufacturing
P.M.
editor,
Strategic
Cell
Design,
Engineering,March,pp84,
Pardue, M.D., Use of Cooperating Expert Systems for Real-Time Fault Detection and Correction in a Manufacturing Cell, Computers Electrica Engineering ,vol.19,no2,pp103-112, 1993
Price, W., Gravel, M., Nsadanda, A.L., A review of optimization models of Kanbanbased production systems, European Journal of Operational Research, 75,pp.1-12,1994 Group Technology Chen, H., Operator Scheduling Approaches in Group Technology CellsInformation Heragu, S. S., Group Technology and Cellular Manufacturing, Min, classification added H., Dooyoung, coding S., A group for and technology value Inventory
and
system
purchasing,
Production
Management Journal,1stquarter,pp.39-42, 1994 Snead, C.S., Group Technology-Foundation for Competitive Manufacturing, NY, Van Vostrand Reinhold, 1989 Kaizen Sheets Hindustan Aeronautics Limiteds Kaizen Sheets.
56
57

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An exhaustive case study of Lean Manufacturing

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An exhaustive case study of Lean Manufacturing

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An exhaustive case study of Lean Manufacturing

In order to compete in todays fiercely competitive market, US

M.E. Department SRMGPC, lucknow

An exhaustive case study of Lean Manufacturing

M.E. Department SRMGPC, lucknow

An exhaustive case study of Lean Manufacturing

M.E. Department SRMGPC, lucknow

An exhaustive case study of Lean Manufacturing

M.E. Department SRMGPC, lucknow

An exhaustive case study of Lean Manufacturing

M.E. Department SRMGPC, lucknow

An exhaustive case study of Lean Manufacturing

An exhaustive case study of Lean Manufacturing

M.E. Department SRMGPC, lucknow

An exhaustive case study of Lean Manufacturing

TOOLS AND TECHNIQUES OF LEAN MANUFACTURING

corrective actions so as to eliminate waste. In the following sections a

An exhaustive case study of Lean Manufacturing

M.E. Department SRMGPC, lucknow

An exhaustive case study of Lean Manufacturing

M.E. Department SRMGPC, lucknow

KAIZEN EVENT MTHODOLGY

An exhaustive case study of Lean Manufacturing

KAIZEN EVENT MTHODOLGY

Apply the tools

Make this Lock in the the new standard new standard

Waste Root Causes

Go to Gemba Observe Use the tools

Continuous Improvement: Do it again!

An exhaustive case study of Lean Manufacturing

M.E. Department SRMGPC, lucknow

An exhaustive case study of Lean Manufacturing

M.E. Department SRMGPC, lucknow

An exhaustive case study of Lean Manufacturing

M.E. Department SRMGPC, lucknow

An exhaustive case study of Lean Manufacturing

M.E. Department SRMGPC, lucknow

An exhaustive case study of Lean Manufacturing

M.E. Department SRMGPC, lucknow

An exhaustive case study of Lean Manufacturing

An exhaustive case study of Lean Manufacturing

M.E. Department SRMGPC, lucknow

An exhaustive case study of Lean Manufacturing

An exhaustive case study of Lean Manufacturing

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An exhaustive case study of Lean Manufacturing

3.6.1 Value adding activities:

3.6.2 Necessary non-value adding activities:

3.6.3 Unnecessary non-value adding activities:

M.E. Department SRMGPC, lucknow

An exhaustive case study of Lean Manufacturing

3.7 Supply Chain Management

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An exhaustive case study of Lean Manufacturing