1

LEAN STRATEGY IMPLEMENTATION

Guide :Dr.G.Venugopal

Yadhu G

Roll No :17

2

LEAN STRATEGY “Lean strategy” in manufacturing

involves a series of activities to minimize waste and Non value added (NVA) operations from production, customer relations, product design, supplier networks and factory management and improve the value added (VA) process.

3

LEAN STRATEGY APPROACH IN TOYOTA PRODUCTION SYSTEM

Lean approach was first introduced by Toyota Production Systems, wherein the wastes highlighted are

4

IMPLEMENTATION ISSUES Applying lean strategies incorrectly,

increases the inefficiencies of an organization's resources and reduced employee confidence in lean strategies.

(Marvel and Standridge 2009). Therefore, applying the appropriate lean

strategy for the specified industry is of paramount importance.

5

REASONS FOR FAILURE OF LEAN STRATEGY

Behrouzi and Wong (2011) reported that the principal reasons behind the failure of the lean practices are

1. the lack of an effective implementation methodology.

2. inadequate understanding of lean performance measurements needed to evaluate the improvement in effectiveness and efficiency .

6

CORE PRINCIPLES OF LEAN STRATEGY The three core principles of lean

strategy are identified as: 1 Identification of value 2 Elimination of waste 3 The generation of smooth flow (Womack et al., 1990)

7

MODIFIED CORE PRINCIPLES OF LEAN STRATEGY 1. Identifying customer defined value 2. Optimizing the value stream 3. Converting the value flow smoothly by

controlling and eliminating wastes 4. Activating the demand pull by

synchronizing customer demand and information flow

5. Perfection of all products processes and services

( Womack and Jones, 2003)

8

PROPOSED METHODOLOGY

new.docx

9

CASE STUDY

The proposed approach was implemented in EXCEL Limited, Australia.

The company specializes in low and medium voltage switchgear products.

This research mainly focused on electrical control and communication cubicle assembly RC-01 ES.

10

Define and assess the system

A lean implementation team is formed

Define the manufacturing performance indicators

Sketch the existing process status and map

Measure the current state of the process using CPM method

Implementation of lean tools based on the identified waste

Evaluation of effectiveness and efficiency of the

proposed approach

Continuous improvement techniques and culture

11

STEP 1 –ASSESS THE SYSTEM Based on the perspective of customer

driven value, authors assessed the current status of lean strategy in the assembly unit.

12

STEP 2-LEAN IMPLEMENTATION PROJECT TEAM

Project Manager

Mechanical Engineer

Master Student

Lean Manufacturin

gExpert

Skilled Operators

ProductionManager

13

STEP 3 -PERFORMANCE INDICATORS The commonly used Performance

indicators are time ,cost ,quality and flexibility.

In this study the authors focused on the “Time” associated with the assembly process.

Continuous Performance Measurement(CPM) method is used in this research to assess the current state of performance.

14

STEP 4-PROCESS MAP Sketch the existing process status and

map using VSM, visual control and time study method.

This map represents all the existing wastes, NVA activities in a process that transforms raw materials into a finished good.

Major steps in the production process are: 1 receipt of raw material 2 assembly of the cubicles at different stages 3 testing 4 inspection 5 packaging

15

ASSEMBLY OPERATIONS

16

EXISTING RC CUBICLE ASSEMBLY PROCESS MAP

17

IDENTIFIED WASTE

The the existing process layout for RC cubicle assembly process was responsible for major part of time wastes and therefore redesigned the layout. The work station had been separated with specific task allocations for each operator which ultimately balanced the workloads.

Handling problems were identified as the second most crucial waste in the process

Third was the shortage of working parts and tools in work stations, overcomed by providing different trolleys in each work station with necessary tools and parts.

18

PROPOSED CUBICLE ASSEMBLY PROCESS MAP

19

STEP 5-PERFORMANCE MEASUREMENTS A major part of the proposed

methodology is to continuously assess performance before and after lean implementation.

In this process, the first step is to measure the current state of the process in terms of efficiency, effectiveness, VA/NVA time ratio using process map and CPM.

20

RESULTSBefore Lean After Lean Improvement

Value Added Time (minutes) 27.15 27.15

Non-value added time

1.Adjusting parts 2.65 2.65 0

2.Walk to hold parts 6.03 1.93 -4.1

3.Walk to get tools 2.45 0.27 -2.18

4.Get parts 5.8 3.15 -2.65

5.Unpack and disassembly 5.15 5.15 0

6.Inspection/paper works 2.5 2.5 0

7.Handling parts and tools 7.46 5.91 -1.55

8.Cleaning 1.03 1.03 0

9.Rework 1.39 1.39 0

Total (Non Value added time) 34.46 24.34 -10

Total (VA+NVA) 61.61 51.49 -10

VA/NVA ratio .79 1.12 42%

21

PERFORMANCE MEASUREMENT

The overall performance of the manufacturing process is measured by considering both effectiveness and efficiency of the production process.

Efficiency = (output value ) × 100% (input resource )

= no of output × average pitch time × 100%

no of workers × total allocated time

22

EFFECTIVENESS Effectiveness compares actual output to

targeted output from a production line (Bayou and de Korvin, 2008).

Effectiveness = Actual number of output ×

100% Targeted output value

23

RESULTS

Before Lean

After Lean Improvement

Daily Production Target 20 26

Achieved Production Target 12 19

Average pitch time 61 51 -10

EFFICIENCY (%) 61 72 +18

EFFECTIVENESS 60 73 +22

24

STEP 6-CONTINUOUS IMPROVEMENT

Monthly meeting and discussions among the operators.

And they discussed about new innovations or new techniques to be implemented in their production floor to reduce NVA operations and effective use of available resources.

5S Kaizen

25

LIMITATIONS Many companies may not have expert

lean team and lean corporate culture . Identification of key performance

indicators is also crucial for leanness evaluation. Sometimes, it is not possible to identify and measure all the performance indicators in a specific company.

Finally, implementation of this method may be costly and time consuming .

26

CONCLUSION The overall achievement in reducing

NVA time , average processing time and improvement in process efficiency and effectiveness were found satisfactory for the company.

The proposed lean implementation methodology can be applied in manufacturing organizations (especially in assembly productions) to improve operational performance.

27

REFERENCE Azharul Karim and Kazi Arif-Uz-Zaman, A

methodology for effective implementation of lean

strategies and its performance evaluation in

manufacturing organizations, J. Business Process

Management, Vol. 19 No. 1, (2013 ), PP 169-195.

Manimay Ghosh, Lean manufacturing performance in

Indian manufacturing plants, Journal of Manufacturing

Technology Management, Vol. 24 No. 1, (2013) , PP

113-122.

 

28

THANK YOU

29

30

31

32

IDENTIFIED WASTE

The lean team found that the existing process layout for RC cubicle assembly process was responsible for major part of time wastes and therefore redesigned the layout.

In the new layout, the working stations and the machines are located in optimum distance for operators which actually reduced walking distances among them.

Handling problems were identified as the second most crucial waste in the process. The work station had been separated with specific task allocations for each operator which ultimately balanced the workloads. Eventually the handling waste was minimized by the separation of the tasks.

In order to overcome the problem related to shortage of parts and tools in work stations, different trolleys in each work station was allocated with necessary tools and working parts

33

Asses the status of Lean Strategy in the company

A lean implementation team is formed

The team further defines the manufacturing performance indicators based on production quantity, processing time and cost.

Sketch the existing process status and map using VSM, visual control and time study method to identify existing process wastes

Measure the current state of the process using CPM method

Different lean tools are implemented considering existing production scopes and wastes into the process.

Again the effectiveness and efficiency of the proposed process is evaluated in the next phase using CPM

The culture for continuous improvement techniques is developed within the process environment

34

35

CONCLUSION

Before Lean

After Lean Change

Value Added Time (minutes) 27.15 27.15

Non-value added time

Adjust 2.65 2.65 0

Walk to parts 6.03 1.93 -4.1

Walk to get tools 2.45 0.27 -2.18

Get parts 5.8 3.15 -2.65

Unpack and disassembly 5.15 5.15 0

Inspection/paper works 2.5 2.5 0

Handling 7.46 5.91 -1.55

Cleaning 1.03 1.03 0

Rework 1.39 1.39 0

Total (Non Value added time) 34.46 24.34 +10

Total (VA+NVA) 61.61 51.49 +10

VA/NVA ratio .79 1.12

Daily Target 20 26

Achieved Target 12 19

Average pitch time 61 51 +10

Efficiency 61 72 +11

Effectiveness 60 73 +13

36

LIMITATIONS The method suggests that at early stage of lean

implementation, a lean team needs to be formed with skilled personnel from different department of the company. The team members should have sufficient expertise in lean strategies and implementation methodology. Many companies may not have people with this expertise.

A team member without necessary knowledge and skills adversely affect the overall success of the project and can measure unrealistic performance of production system.

Identification of key performance indicators is also crucial for leanness evaluation. Sometimes, it is not possible to identify and measure all the measures of performance indicators in a specific company.

Finally, implementation of this method may be costly and time consuming but new methods and techniques need to be applied within company’s budget and resources.

37

DESIGN NEW PROCESS: LEAN TOOLS, TECHNIQUES

Lean techniques provided better results depending on the firm size; practices such as setup time reduction, multifunction employees and Kanban system provide better organizational performance regardless of firm size.

Wan and Chen (2009) identified 12 groups of lean tools (Autonomation, concurrent engineering, line balancing, manufacturing cell, productivity, pull, quality, single minute exchange of die (SMED), standard work, visual control, VSM, and worker flexibility) to implement in two type of systems

(quantitative and repetitiveness of product).

38

CONTINUATION VSM technique developed by Rother and

Shook (1999) becomes one of the most commonly used lean tools.

Melton (2005) also suggested five key lean tools especially for process industries namely,

( kanban, 5S, visual control, Poke Yoke and SMEDs.)

39

CONTINUOS IMPROVEMENT set up monthly meeting and discussions

among the operators. In these meetings, they discussed about new innovations or new techniques to be implemented in their production floor.

The overall achievement in reducing NVA time and average processing time and increment in process efficiency and effectiveness were satisfactory

40

CPM SHEET (BEFORE LEAN IMPLEMENTATION)

41

To meet such expectations, the manufacturing industry is focusing on advanced manufacturing strategies in particular the

‘manufacturing-task strategy’ and ‘manufacturing-choice strategy’

(Miller and Roth 1994, Swink and Way 1995).

42

MANUFACTURING-TASK STRATEGY The manufacturing-task strategy

represents the competitive capability the manufacturing firm must accomplish in order to compete successfully in its business or marketing environment

(Davies and Kochhar2002, Leung 2002)

43

MANUFACTURING-CHOICE STRATEGY The manufacturing-choice strategy

represents the appropriate selections of technologies and management strategies to improve the manufacturing system.

44

IDENTIFICATION OF MAJOR WASTES BY TIME STUDY

45

RC CUBICLE The RC control and communications

cubicle is a microprocessor-based controller that provides a directional over current, earth fault and sensitive earth fault relay, auto reclosing relay, instantaneous metering, event log, demand logger and remote terminal unit (RTU) for remote control in a single package.

46

47

48