Lean management in textile processing

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Indian Apparel Market

Anshu ChauhanMS Textile Dyeing & Finishing, Wuhan Textile University (China)

Asst. Manager (Marketing & Technical Services) Colorant Limited11th Sep,2015Lean Management Concepts In Textiles

ContentsLean Management: Introduction

Wastes & Its Types

Principles of Lean

Lean Tools

How to LEAN

LEAN Pros and Cons

Implementation in Textile industry

Conclusion

Lean Management: Introduction

3

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?

ValueValue - 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

6

WasteAnything that adds Cost to the product without adding Value

The 7 Wastes Of ManufacturingOverproductionWaitingInventoryTransportationMotionOver ProcessingRework

1675432

* One more added recently Underutilization of people

The 7 Wastes Of ManufacturingWaste TypesCausesExample SymptomOverproductionProducing more product than neededExtent of warehouse space needed and used, Large engineering costs/time associated with facility modificationsInventoryAny supply in excess to produce productLarge buffer stocks within a manufacturing facility and also large warehousing on the site; financially seen as a huge use of working capitalWaitingIdle Operator or machine timeLarge amount of work in progress held up in the manufacturing processoften seen on the balance sheet and as piles of inventory around the siteMotionMovement of people or machine which does not add valueLarge 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 systemsTransportationAny material movement that doesnt support Value added operationMovement 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 productDefectsMaking defective partsMissed or late orders, excessive overtime, increased operating costsExtra ProcessingAny process that does not add value to the productReaction 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 WasteWhat 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

11

Principles of Lean

12345Specify 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 PrincipleTraditional thinking dictates that you set your selling price by calculating your cost and adding on a margin for profitIn todays competitive market the customer sets the price and you dont have the luxury of adding a profit marginThe only way to remain profitable and grow your business is to eliminate waste from your value stream, thereby reducing costscost reduction principle

Determine the price customers are willing to pay, and subtract your cost to determine what your profit will beEliminating waste is important because customers not only set the price, but they also demand price reductions

Cost Reduction Principle

PricePrice

Traditional ThinkingCost + profit = price

CostProfitPricePriceLean ThinkingPrice cost = profit

Show left hand side first, 1. Determine Cost to produce an item 2. Add profit you want 3. This gives you Price to the customer If you want to increase your profit under this system, how do you do it? --->>> Raise the price to the customer. reveal right hand side This is what most companies operated in the 60s and 70s, just pass the cost along to the customer. But as the markets get more and more competitive, do you think this strategy will still work?? NO!! So if Cascade wants to increase their profits now a days, how could they do it??Discussion

Transition to next slide...14

Lean Manufacturing Tools

15

Lean Manufacturing ToolsTools RemarksStandardized workJobs 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, SustainVisual FactoryInformation is made available ad understandable at a glancePoint-of-use-storage (POUS)Locate all parts, raw materials, tools and fixtures as close as possibleQuality at sourceError proofing devices are usedKanbanAn information system that controls required parts in required quantities at the required timeOne Piece FlowTo minimize work in process, operators focus on completing one part through operation before focusing on otherTotal Productive MaintenanceConsists of a company wide equipment maintenance program that covers the equipment life cycle and requires participation by everyoneValue Stream Mapping (VSM)VSM is a method of visually mapping a products production path including material and information flow, from dock to stock. TAKT TimeTAKT 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

17

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 operations 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

23

Forces Opposing and Driving A Change To Lean

LEAN and Profitability

Benefits of Being LEAN

Lean In Textiles

27

DecisionsDecisionsDecisions Is my company too small for Lean Process Improvement?Isnt 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

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 industriesEscalation of cost due to excessive waste generation due to non organised workplaceNon Optimal plant layoutHigh Work in Progress (WIP)Non availability of necessary spares and other accessories.

Problem Statement: ExampleABC 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

ISSUESAbsence of proper identification and storage of materials.

PROBABLE SOLUTIONSEmploying 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 SOLUTIONSSystematic 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,