2010

Lean Enterprise MOST Way in Tyre Manufacturing Industry A Case Study on Process Improvement, Facility Layout Planning and Work Force Productivity Improvement

Mate UMAS Pvt. Ltd. 5/15/2010

Lean Enterprise MOST Way in Tyre Manufacturing Industry A Case Study on Process Improvement, Facility Layout Planning and Work Force Productivity

2010

CHAPTER 1 EXECUTIVE SUMMARY

This paper discusses the concept of Work Measurement using MOST and its application for the first time in Tyre Manufacturing Industry in India. Project findings are a revelation on the extent to which LABOR Resources are underutilized in Tyre Manufacturing and also emphasize the need for re-deployment of manpower for achieving higher engagement time per associate in Production Direct & In-Direct Areas. There is also significant scope for improvements in the facility layout, material handling system and shop floor processes. This study also includes detailed Capacity (Load Analysis) analysis of the plant to identify critical work centers as per the demand for various product categories. Significant portion of the current work content and cycle time is spent in performing non-value adding activities, which can be further reduced to eliminate waste from the system. Potential for labor productivity improvement is as high as 55% in Production Direct and In-Direct areas. Effective utilization of workforce is a primary objective for any manufacturing organization and Tyre manufacturing industry is no exception to this. Following chapters provide details on the concept of Work Measurement using MOST, MOST in India and also details on the case study in Tyre manufacturing.

UMAS Pvt. Ltd.

Lean Enterprise MOST Way in Tyre Manufacturing Industry A Case Study on Process Improvement, Facility Layout Planning and Work Force Productivity

2010

CHAPTER 2 WORK MEASUREMENT AND INTRODUCTION TO MOST

Work Measurement (1)
The desire to know how long it should take to perform work must surely have been present in those individuals responsible for erecting ancient monuments or shaping tools. Why d id the ancients and why do we need to be able to predict with accuracy the length of a working cycle? How was such a prediction made? How is it made now? There are many reasons for wanting to know the amount of time a particular task should take to be completed. It may simply be for reasons of curiosity. But realistically, it is for any of three reasons: (1) to accomplish planning, (2) determine performance and (3) establish costs. Suppose an organization wishes to manufacture a new product. Using an economical predetermined motion time system, the planning and budgeting process could be accomplished with confidence. Knowing the time to manufacture and assemble various parts and/or components, a manager could: Determine the total labor cost for a product or service. Determine the number of workers or staff needed. Determine the type and capacity of equipment needed. Determine the amount of and delivery times for materials. Determine the overall production or service schedule. Determine the feasibility of new products and services. Set and follow-up on production or service goals. Measure individual or departmental performance. Obtain predicted costs of production or service. Implement a performance-based pay system. Knowing how much time it takes to perform certain tasks enables a manager to achieve and maintain a high utilization of personnel, material and equipment. This results in an overall efficiency that will make sustainable organizational growth possible.

UMAS Pvt. Ltd.

Lean Enterprise MOST Way in Tyre Manufacturing Industry A Case Study on Process Improvement, Facility Layout Planning and Work Force Productivity

2010

MOST (Maynard Operation Sequence Technique) (1)

Maynard Operation Sequence Technique is a revolutionary PMTS (Pre Determined Motion Time System) developed by Kjell Zandin and H.B.Maynard and Company, Inc (Now Accenture Inc.) in 1974. This technique is based on MTM (Methods Time Measurement). Movement of objects follows consistently repeating patterns and these repeated patterns in the sequence of MTM have been consolidated while designing MOST.

Features of MOST
Reduced analysis time with little impact on accuracy Is accurate Generates consistent results Encourages method improvement Can be used in a wide variety of industries Is easy to learn and use Can obtain timings in advance Globally Accepted and Recognized by Unions

UMAS Pvt. Ltd.

Lean Enterprise MOST Way in Tyre Manufacturing Industry A Case Study on Process Improvement, Facility Layout Planning and Work Force Productivity

2010

CHAPTER 3 MOST in India

Introduction of MOST in India
Concept of MOST was successfully deployed in India for the first time in 1994 by Mr. Ashok Badve (Currently -Managing Director, UMAS Pvt. Ltd.). Mr. Badve was working with Mahindra and Mahindra as GM Industrial Engineering, where he got trained as an Instructor in MOST from Maynard and Co., Pittsburgh. He conducted deep research into this concept and made sure that it was applicable in Indian factory conditions. Once he was convinced that it will work and generate substantial improvements in productivity, he implemented it across Mahindra and Mahindra plants. Implementation of MOST resulted in quantum jump in labor productivity (at times greater than 100%). Labor Unions also showed ACCEPTANCE to this technique as it is VERY TRANSPARENT and easy to understand. The standards are EASILY ACHIEVABLE and hence EASILY DEMONSTRATABLE and ACCEPTABLE by associates. Mr. Badve started consulting companies outside Mahindra and Mahindra and thus began the journey of MOST proliferation in India. Most of Indias leading organizations like Crompton Greaves Ltd., Ashok Leyland Ltd., Kirloskar Brothers Ltd., Kirloskar Oil Engines Ltd., Anand Automotive Systems, BILT, etc. made early INROADS with application of MOST and saw significant improvements in plant productivity. Mr. Badve is currently the Managing Director of UMAS Pvt. Ltd. (Unique MOST Application and Solutions Pvt. Ltd.) and has consulted more than 185 Manufacturing and Service sector organizations till date. He evolved the concept of LeMW (Lean Enterprise MOST Way) over the last few years and has delivered significant value to his clients.

UMAS Pvt. Ltd.

Lean Enterprise MOST Way in Tyre Manufacturing Industry A Case Study on Process Improvement, Facility Layout Planning and Work Force Productivity

2010

CHAPTER 4 Lean Enterprise MOST Way

LeMW (Lean enterprise Most Way)
LeMW is a continuous improvement strategy used by organizations to achieve world-class performance. The best way to define the Lean methodology is to describe the characteristics of an organization on the world-class journey. These organizations will strive to: Improve quality, safety and productivity Eliminate waste and focus on value-added activities Reduce delays, lead times, inventories and costs Create an empowered workforce and Capitalize on effective teamwork Continuous improvement culture, reduce Work Content and Increase Effective Working Time
What is expected from LeMW?

Record and Measure Activities Filter NVA (Non Value Added) and get Lean Work Content Reduce your delivery times and costs Communication : Actual Effective Working Time and Losses are communicated Increase participation from all employees Target for only Value-Added activities that customers are willing to pay for
Where can be LeMW useful?

1. 2. 3. 4. 5.

From Order to Dispatch Managerial, Office, Clerical and Shop Floor Any Manufacturing facility Process/Chemical/Pharmaceutical Industries Service Industries, Hospital, Banks, Retail, Ware Houses and Supply Chain

Lean Manufacturing is an operational strategy oriented toward achieving the shortest possible cycle time by eliminating waste. It is derived from the Toyota Production System and its key thrust is to increase the value-added work by eliminating waste and reducing incidental work. The technique often decreases the time between a customer order and shipment, and it is
UMAS Pvt. Ltd.

Lean Enterprise MOST Way in Tyre Manufacturing Industry A Case Study on Process Improvement, Facility Layout Planning and Work Force Productivity

2010

designed to radically improve profitability, customer satisfaction, throughput time, and employee
morale. The benefits generally are lower costs, higher quality, and shorter lead times. Using LEMW, UMAS consultants, use unique approach called as MORAL Cycle, which comprises of Mapping, Observation, Recording, Analyze and Lean.

UMAS Pvt. Ltd.

Lean Enterprise MOST Way in Tyre Manufacturing Industry A Case Study on Process Improvement, Facility Layout Planning and Work Force Productivity Productivity

2010

CHAPTER 5 LeMW in Tyre Industry - Findings

Our client is a leading manufacturer and pioneer in manufacturing of Tyres. They ha several . have factories located in India & other countries This study was conducted at one of their countries. as manufacturing plants in India. They manufacture a wide range of tyres for various vehicles including heavy trucks, light commercial vehicles and tractors. ight

Scope of the LeMW (Lean Enterprise MOST Way) Study

To measure the work content of the current work force in the plant using MOST (Maynard Operations Sequence Technique) in production direct and indirect areas. More than 300 uence s. associates (direct and in-direct areas) were studied during this study. After work content was direct established, the lines were balanced to improve the engagement time of the wor force from work its current level and proposed manpower to be deployed was calculated. Activities performed vel in the PRODUCTION departments for the following processes were considered in scope of work.

Raw Material Store

Mixing

Extrusion

4 Roll Calendaring

Bias Cutting

Bead Winding

3 Role Calendaring

Band Building

Green Tyre Building

Poking, Dusting

Curing

Final Inspection & Dispatch

Scope:
Process Mapping & Observation of Production Run time activities performed by the direct and indirect associates on the equipment installed in various processes processes. Capacity(Load) analysis on all production activities from mixing to final inspection Layout Preparation as per industrial Engineering principles for the upcoming facilit facility.

UMAS Pvt. Ltd.

Lean Enterprise MOST Way in Tyre Manufacturing Industry A Case Study on Process Improvement, Facility Layout Planning and Work Force Productivity

2010

Approach:
Identified families of master product routings which covered almost all the varities produced in the plant. Process Mapping of all the activities for each of the product routings Work Measurement using Maynard Operation Sequence Technique for all the activities Identification of Non-Value adding activities and suggestions on eliminating them Reduction in Non-Value adding activities on the bottleneck and critical processes, to enhance capacity of the plant Creation of Master Routings along with Cycle Time and Content of Work for each process in the routing Capacity (LOAD) analysis of the plant Identification of critical work centers as per the demand on different product routings Multi-Machine balancing and Manpower Calculation Considering all the positional constraints and forced constraints, balance all the process operations for the given demand Deployment of balanced manpower as per the BALANCING PLAN

Sample Load Analysis:

Work Center Description GREEN TYRE ASSEMBL BANBURRY Type A BANBURRY Type B Band Building (19) BIAS CUTTING 3 ROLL CALENDER Bead Covering CURING Type A EXTRUSION M/C1 EXTRUSION M/C2 DUSTING CURING Type B Bead Filler M/C Sum of TOTAL CT 864995.12 163521.56 181522.30 95304.10 459703.98 60241.57 23615.58 1061780.68 73428.15 28010.30 92045.31 1563798.04 372745.64 Sum of TOTAL CW 875521.82 394497.84 377795.67 95647.68 1174834.14 19913.69 23615.58 48524.44 158128.79 41029.80 143281.37 56512.08 372745.64 OEE 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% EWT 27000 28800 28800 27000 27000 27000 27000 28800 28800 28800 27000 28800 27000 # OF WORK CENTERS 20 2 2.1 4 7 1 1 12 1 1 4 39 7 NO OF SHIFTS 3 3 3 3 3 3 2 3 3 3 3 3 3 RESOURCE CRITICALITY 0.5 0.9 1.0 0.3 0.8 0.7 0.4 1.0 0.8 0.3 0.3 0.5 0.7

UMAS Pvt. Ltd.

Lean Enterprise MOST Way in Tyre Manufacturing Industry A Case Study on Process Improvement, Facility Layout Planning and Work Force Productivity

2010

Project Findings
Potential for labor productivity improvement 55% Significant potential for reduction in batch size and manufacturing through put time Many process changes which can be done at very low cost to reduce FATIGUE and WORK CONTENT in non-value adding activities Excessive back tracking of material on the layout No synchronized flow of material

Production Direct Manpower:

Production Direct and Indirect Manpower Per Shift Basis Basic Manpower as per Lean CW 8.06 1.62 1.95 14.71 .61 17.31 11.49 32.02 3.2 10.95

Sr. No. 1 2 3 4 5 6 7 8 9 10

Area Mixing Extrusion 4 Roll Calendaring Bias Cutting 3 Roll Calendaring Band Building Bead GREEN TYRE ASSEMBLY Curing Final Inspection Total

Current Manpower 47 35 14 40 12 52 34 120 31 37

Basic Manpower as per CW 13.54 3.83 3.2 21.47 2.5 22.78 14.62 57.15 5.13 21.98

Proposed Manpower 33 18 11 28 9 32 23 68 23 26

422

166.20

101.92

271

Scope for Labor Productivity Improvement 55% CW Content of Work LCW Lean Content of Work

UMAS Pvt. Ltd.

Lean Enterprise MOST Way in Tyre Manufacturing Industry A Case Study on Process Improvement, Facility Layout Planning and Work Force Productivity

2010

CHAPTER 6 References
(1) - MOST Work Measurement Systems, 3rd Edition, 2008 Kjell B. Zandin

UMAS Pvt. Ltd.

Lean Enterprise MOST Way in Tyre Manufacturing Industry A Case Study on Process Improvement, Facility Layout Planning and Work Force Productivity

2010

CHAPTER 7 Contact Details

Ashok Badve Managing Director Email: ashokbadve@gmail.com Mobile Number: +91-9822595307

Amol Mate Director Business Development Email: amolmate.umas@gmail.com Mobile Number: + 91-9766338082

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