Anshu ChauhanMS – Textile Dyeing & Finishing, Wuhan

Textile University (China)

Asst. Manager (Marketing & Technical Services)

Colorant Limited

11th Sep,2015

Lean Management Concepts In Textiles

Contents

1. Lean Management: Introduction

2. Wastes & Its Types

3. Principles of Lean

4. Lean Tools

5. How to LEAN

6. LEAN Pros and Cons

7. Implementation in Textile industry

8. Conclusion

Lean Management: Introduction

A systematic approach in identifying

and eliminating waste,

or non-value added-activities

throughcontinuous improvement

By making products through improved speed & flexibility

with best quality & lowest cost

What is LEAN?

Value

Value - A capability provided to a customer at the right time at an appropriate price, as defined by the customer.Value Add

- Anything that changes shape, form or function of a product, sub-assembly, information or service into something that the customer is willing to pay for.Non Value Add

- Any activity that absorbs or consumes resources without creating value. Type 1 – can be eliminated immediately Type 2 – due to current state, cannot yet be eliminated

Note: Usually 95% of the total processing time is Non Value Add.

Wastes & Its Types

Waste

“Anything that adds Cost

to the product without adding

Value”

The 7 Wastes Of ManufacturingOverproduction

Waiting

Inventory

Transportation Motion

Over Processing

Rework

1

6

7

5 4

3

2

* One more added recently “Underutilization of people”

The 7 Wastes Of Manufacturing

Waste Types

Causes Example Symptom

Overproduction

Producing more product than needed

Extent of warehouse space needed and used, Large engineering costs/time associated with facility modifications

Inventory Any supply in excess to produce product

Large buffer stocks within a manufacturing facility and also large warehousing on the site; financially seen as a huge use of working capital

Waiting Idle Operator or machine time

Large amount of ‘work in progress’ held up in the manufacturing process—often seen on the balance sheet and as ‘piles of inventory’ around the site

Motion Movement of people or machine which does not add value

Large teams of operators moving to and from the manufacturing unit but less activity actually within the unit, Data entry being seen as a problem within MRP systems

Transportation

Any material movement that doesn’t support Value added operation

Movement of pallets of intermediate product around a site or between sites, Large warehousing and continual movement of intermediate material on and off site rather than final product

Defects Making defective parts

Missed or late orders, excessive overtime, increased operating costs

Extra Processing

Any process that does not add value to the product

Reaction stage is typically complete within minutes yet we continue to process for hours or days, We have in process controls which never show a failure, delay of documents to accompany finished product

Understanding Waste

What would you be willing to pay for when ordering a hamburger?

___ Meat___ Dough___ Ketchup___ Electricity to run ovens___ Electricity to run outdoor

lights left on accidentally___ Person paid to inspect take- out orders___ Cost of hamburgers not sold___ Distribution Center

___ Cost of radio, TV, web ads___ Cost of delivery truck signs___ Cost of store manager___ Cost of cleaning___ Cost of menus___ Employee training___ Profit

Principles of LEAN

Principles of Lean

1

2

3

4

5 Specify value : Specify value from the standpoint of the end

customer by product family.

Identify the value stream :Identify all the steps in the value stream for each product family, eliminating whenever possible those steps that do not create value.

Create flow :Make the value-creating steps occur in tight sequence so the product will flow smoothly toward the customer.

Let the customer pull product through the value stream:

Make only what the customer has ordered.

Cost Reduction Principle

Traditional thinking dictates that you set your selling price by calculating your cost and adding on a margin for profit

In today’s competitive market the customer sets the price and you don’t have the luxury of adding a profit margin

The only way to remain profitable and grow your business is to eliminate waste from your value stream, thereby reducing costs—cost reduction principle

Determine the price customers are willing to pay, and subtract your cost to determine what your profit will be

Eliminating waste is important because customers not only set the price, but they also demand price reductions

Cost Reduction Principle

Price

Price

Traditional ThinkingCost + profit = price

Cost

Profit

Price Price

Lean ThinkingPrice – cost = profit

Lean Manufacturing Tools

Lean Manufacturing ToolsTools Remarks

Standardized work Jobs are broken down into elements and examined to determine best and safest method for each.

Workplace Organisation (5S concept)

Sort, Set-in-order, Shine, Standardize, Sustain

Visual Factory Information is made available ad understandable at a glance

Point-of-use-storage (POUS)

Locate all parts, raw materials, tools and fixtures as close as possible

Quality at source Error proofing devices are used

Kanban An information system that controls required parts in required quantities at the required time

One Piece Flow To minimize work in process, operators focus on completing one part through operation before focusing on other

Total Productive Maintenance

Consists of a company wide equipment maintenance program that covers the equipment life cycle and requires participation by everyone

Value Stream Mapping (VSM)

VSM is a method of visually mapping a product’s production path including material and information flow, from dock to stock.

TAKT Time TAKT is the rate at which a customer requires the product and is computed as TAKT time= (Available work time/Customer demand/day)

How to LEAN

How To “LEAN”

HOW TO MAKE LEAN SUSTAINABLE ?

LEAN SYSTEM = Rules + Tools 

LEAN = RULES NOT JUST TOOLS

LEAN STARTS WITH RULES NOT TOOLS

THE FOUR RULES Structure every activity Clearly connect each customer and supplier Specify and simplify every flow Improve through experimentation at the lowest level possible - towards the ideal state

Rule 1 - Structure every activity Lean Is A System Not An Event

Standardize everything that is done

Make it a way of life not a “flavor of the month”

Rule 2 – Clearly connect each Customer and Supplier

Internal – Each operation is the previous operation’s customer

External – Outside supplier base

LEAN = RULES NOT JUST TOOLS

Rule 3 – Specify and simplify every flow

Product

Material

Information

Rule 4 – Improve Through Experimentation At The Lowest Level Possible Towards The Ideal State

See every problem as an opportunity to focus and move toward the ideal

state Decision making at the point of activity

LEAN = RULES NOT JUST TOOLS

Lean Pros And Cons

Forces Opposing and Driving A Change To ‘Lean’

LEAN and Profitability

Benefits of Being “LEAN”

Decreased lead times for

customers

Reduced inventories for manufacturers

Improved knowledge

management

More robust processes (as measured by less

errors andtherefore less rework).

Less Process Wastes

Financial Savings

Lean In Textiles

Decisions—Decisions—Decisions

Is my company too small for Lean Process Improvement? Isn’t Lean a manufacturing process? I am a service business. Can I afford to implement Lean Process Improvement?

All of these industries have successfully applied Lean to their processes

How Chemical Processing Industry Can Benefit From Lean Implementation

• Electronic Quality Management System: reduce the time, effort and cost of achieving compliance to customer or industry requirements.

• Critical documents such as Material Safety Data Sheets (MSDS), always of the correct revision level, are available in real-time to process personnel to prevent waste and non-compliance due to procedural errors and their associated time delay.

• Quality improvement and waste reduction opportunities, identified via audits, feedback from customers or process personnel, and results of process control strategies are promptly identified

Quality Management

• . A properly designed and implemented Six Sigma effort will integrate prioritization and deployment of improvement opportunities and strategic business development issues into the middle to upper levels of management, where they are inherently aligned with the strategic business objectives.

• The Six Sigma approach for resource allocation, coupled with the DMAIC/DMADV project methodology, builds buy-in within the key stakeholder groups, reducing the time, effort and cost associated with achieving Quality System compliance, business development and business performance improvements.

Six Sigma Design & Process Improvement

• Statistical Process Control (SPC): provides rapid yet advanced real-time analysis of process data, including: alerts to online and offline users; customized reporting, including automated Certificates of Analysis, through Excel, Word templates, or a secure access-controlled web interface for remote management, field operatives or customers; and integration with process documentation and instructions.

Process Capability, validation And Control

Implementation In Chemical Processing

Availability of raw materials ( backward integration of process) To develop multi function workers so that labour requirement could be

trimmed and streamlined to avoid shortage of skilled manpower. Now companies are focusing more in keeping less inventory and developing

good vendor relations to minimize cost of production Reduction of waste is already in practice in chemical industries

Escalation of cost due to excessive waste generation due to non organised workplace

Non Optimal plant layout High Work in Progress (WIP) Non availability of necessary spares and other accessories.

Problem Statement: Example

ABC Mill is facing problems in the areas of Visual Management, Waste Management and Quality Aspects ultimately resulting in increased costs and reduced profits.

Visual Management

ISSUES

1. Absence of proper identification and storage of materials.

PROBABLE SOLUTIONS

Employing location labeling for identification and storage.

Material Identification (colour) codes.

Floor marking tapes showing walkways and restricted areas.

• Floor marking tapes showing specific storage areas.

2. Absence of an Organized and Structured work environment.

PROBABLE SOLUTIONS

Systematic Cleaning and Painting Schedule.

Introduction of 5S.

Visual Displays: Recognizing performances of

employees.

Visual Control: Signs such as Warning,

Danger signs, Safety signs, etc

Reducing Textile Cutting waste

• Optimum, uniform width• Maximum practical length• Minimum defects• Protective packaging, with clean, increased ends at beginning and end of roll• Minimum shade variation• Convert scrap fabric into yardage.

Conclusion

Lean is a proven, company-wide systematic approach to eliminate/minimize waste resulting in the production of a “good” or “service” at the lowest possible cost

It is not just a manufacturing program confined to shop floor employees Lean is every system, every process, and every employee within the

organization

Thank You