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OPTIMISING THE PRODUCTION
PROCESS OF EXPORT
COMPONENTS IN ROOTS CAST PVT
LTD.
A PROJECT REPORT
Submitted by
SRIDHAR V
Register No: 098001123096
in partial fulfillment for the award of the degree
of
MASTER OF BUSINESS ADMINISTRATION
SRI KRISHNA COLLEGE OF ENGINEERING AND TECHNOLOGY,
COIMBATORE641 008
ANNA UNIVERSITY OF TECHNOLOGY, COIMBATORE
JUNE 2011
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SRI KRISHNA COLLEGE OF ENGINEERING AND
TECHNOLOGY, COIMBATORE641 008
MASTER OF BUSINESS ADMINISTRATION
PROJECT WORK
JUNE 2011
This is to certify that the project entitled
OPTIMISING THE PRODUCTION PROCESS OF EXPORT
COMPONENTS IN ROOTS CAST PVT LTD.
is the bonafide record of project work done by
SRIDHAR.V
Register No: 098001123096
of MBA during the year 2010-2011.
------------------------ ---------------------------
Project Guide Head of the Department
Submitted for the Project Viva-Voce examination held on
----------------------------- ----------------------------
Internal Examiner External Examiner
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DECLARATION
I affirm that the project work titled OPTIMISING THE PRODUCTION PROCESS
OFEXPORT COMPONENTS IN ROOTS CAST PVT LTD being submitted in partial
fulfilment for the award ofMASTER OF BUSINESS ADMINISTRATIONis the original
work carried out by me. It has not formed the part of any other project work submitted for
award of any degree or diploma, either in this or any other University.
Sridhar.V
098001123097
I certify that the declaration made above by the candidate is true
Signature of the Guide,
Mrs.V.Kalyani
Assistant Professor
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ACKNOWLEDGEMENT
The list of people, who made this project a reality, is very large one. I take this
opportunity to try and identify each and every one of them and thank for their valuable and
generous contribution.
To begin with, I offer my humble thanks at the sacred feet of the Almighty; the
creator whose will was to make this project a great success.
I express my deep and sincere heartfelt gratitude to MR. K. RAMASAMY,
CHAIRMAN, ROOTS INDUSTRIES INDIA LTD. For giving me the opportunity to carry
out the internship in this esteemed organization.
I also take the privilege in thanking, DR. KAVIDASAN, HR HEAD, ROOTS
INDUSTRIES INDIA LTD., MR. N. SAMPATHKUMAR, SR. MANAGER,
TRAINING & DEVELOPMENT ROOTS INDUSTRIES INDIA LTD, MR .JAMES
BASKAR & MR.PREM KUMAR, ROOTS CAST PRIVATE LIMETED, MR.
SENTHIL GANESH, HPED, ROOTS INDUSTRIES for their support and guidance in
carrying out the project.
I take this opportunity to thank first the Principal of our collegeDr. S. SUBRAMANIAN, B.E., M.Sc.(Engg.)., Ph.D., for giving the permission to carry out
the project work. I am pleased to thank my guide, MRS. KALYANI,
SRI KRISHNA SCHOOL OF MANAGEMENT, for her guidance throughout the course
of project.
I would like to thank my family members and friends for their blessings and
encouragement to complete this work.
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TABLE OF CONTENTS
CHAPTER NO TITLE PAGE NO
Abstract ii
1
Introduction 1
1.1. Introduction to study 11.2. Company profile 2
1.3 Statement of problem 11
2
Objectives and Scope of study 13
2.1 Objectives of research 13
2.2 Scope of research 13
2.3 Key Assumptions 13
3
Review of Literature 15
3.1. Introduction 15
3.2. Lean Manufacturing 16
3.3. Lean Manufacturing Principles 17
3.4. Lean Manufacturing Goals 19
3.5. Value Stream Mapping 19
3.6. Value Stream Mapping and Process Flows 21
3.7 Value add versus Non-Value add analysis 22
3.8 Lean thinking 24
3.9 Lean Six Sigma 25
3.10 Sources of Waste 25
4
Research Design and Methodology 28
4.1 Introduction 28
4.2 Tools used in this research 28
5
Current State mapping 35
5.1 Inference 36
6
Implementation of Future State Map and
Improvements
37
6.1 Comparison between Current and Future state maps 37
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6.2 Future State Mapping 42
7
Findings and Suggestions and Conclusion 43
7.1. Suggestions 43
7.2. Findings 43
7.3 Summary of Research 44
7.4 Benefits brought by the research 44
7.3 Conclusion 45
Bibliography 46
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LIST OF FIGURES
S.No Particulars Page No
3.1.1 Goals and their level of abstraction 15
5.1 Current state mapping- Adapter 32
5.2 Current state mapping- Faden 33
5.3 Current state mapping- Largershitten Double 34
5.4 Current state mapping- Housing F Unloader 35
6.1 Future state mapping- Adapter 38
6.2 Future state mapping- Faden 39
6.3 Future state mapping- Largershitten Double 40
6.4 Future state mapping- Housing F Unloader 41
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CHAPTER 1
INTRODUCTION
1.1INTRODUCTION TO STUDY:The business environment has changed during the last ten years. It seems no industry is
immune to the direct or indirect consequences of global competition. For many organisations,
obsession with quality and productivity is evident. Very few organisations take into
consideration the following:
Production of item which are not needed Mistakes in processes which require work Steps in production process which are not actually needed Movement of employees and transportation of goods from one place to another
without any purpose
A group of employee downstream who are standing without any work to performAs much as 60% of operations in a manufacturing business do not add value to the
product and customer.
World class organisations tend to invest on sophisticated technology with the intention of
saving costs. This form of cost saving only applies to reduce labour cost, which is a short
term solution to the problem of inefficiency.
In this day and age, managers are forced to think lean. Some organisations especially in the
manufacturing industry, have decided to implement lean six sigma which has the following
benefits:
Helps the organisation become more profitable by cutting costs, improving deliverytime, reducing inventory and increasing customer satisfaction.
Develop valuable job skills such as decision making, problem solving and teamwork. Makes the workplace better by getting rid of waste.
Roots casting focuses on die casting, will be briefly discussed, depicting the problem that
they are now facing. The main problem will be identified and addressed by this study.
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This will be done by identifying the sub-problems, establishing and confirming the key
assumptions, conducting literature studies and implementing the philosophies and principles.
This study is aimed at answering the question of how value stream mapping will be used to
add value to bottom line of roots castings and eliminate all non-value adding activities in the
process flow of refurbishing rolling stock.
1.2COMPANY PROFILE:
Roots-Group of Companies
NAME OF THE COMPANY PRODUCT/SERVICE
1 Roots Industries Ltd. Electric horns
2 Roots Auto Products Pvt. Ltd. Air horns, switches &
controllers
3 Roots Multi clean Ltd. Industrial cleaning equipment
4 Roots Cast Pvt. Ltd Aluminium and Zinc pressure
die cast
5 Roots Precision Products Dies, tools, jigs & fixtures
6 Roots Digital Services Pvt. Ltd. Digital Engineering Services
7 Roots Metrology Laboratory Instrument calibration,
quality system and
consultancy
8 Roots Polycraft Plastic components
9 RK Nature Cure Home Nature cure therapy, yoga
and massages
10 Crystal Clean Care Range for modern cleaning
techniques
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Roots Auto Product Private Limited:
Roots Air horns ensures a smooth and safe passage of thousands to heavy vechiles on
the move.
Roots Auto Products limited (RAPPL), the largest supplier of Air horns in India caters
to the needs of several OEMs : Ashok Leyland, Caterpillar India and JCB Escorts. Roots air
horns also finds a place of pride in passenger vechiles, trucks, earth moving equipment, etc.
Roots air horns are exported to countries in North America, Europe, Middle East, Africa
and SAARC region.
Roots Multi Clean Limited:
RMCL is situated in the suburbs of Coimbatore, is a joint venture with Hako Werke
Gimbh & Co., Germany. It commenced manufacturing of cleaning equipment in early 90s at
its modern factory located amidst natural greenery. RMCL is the sole representative of Hako
Werke Gimbh & Cos entire range of cleaning equipment for India and SAARC countries.
To improve and facilitate a better service to its customers, RMCL has established
regional offices in all metros and a huge dealer network in bigger Cities and States. The
superior quality products and the added advantage of good sales and after sales service has
established the company as the companys largest manufacturer of floor cleaning equipment.
Roots Cast Private Limited:
Roots Cast Pvt. Ltd., (RCPL) formally known as Aruna Auto Casting Pvt. Ltd., was
established in 1984 to meet the captive requirements of Roots group. With its ever probing
eye on the needs of the market, the company in the late 80s expanded its operation to
manufacture High Pressure Die Cast Aluminium and Zinc components to the extracting
needs of various customers in Automobile and Textile Industry with a high degree of
Quality and Perfection.
RCPL now has established itself a major player in the die cast component
manufacturing thanks to the expertise built in the core activities like tool design, tool making
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and pressure die cast component manufacturing. RCPL supplies machined castings and sub
assemblies as per customer requisitions.
Roots Precision Products:
Roots Precision Products was established in 1987 to address the in-house tooling needs
of the diverse industries in Roots group. Owing to continuous improvement and investment
into better resources, the company had become self-sufficient. It is catering to the needs of
various Industries RPP acts as a one-stop solution for tooling and precision machining.
Roots Digital Services Private Limited:
Roots Digital Engineering Services Private Limited specializes in offering cutting edge
engineering services that include Computer Aided Design and Computer Aided
Manufacturing with emphasis on product development technology. Companies that look for
digital engineering expertise use our services as a strategic tool to maximize their business
impact. Roots Digital specializes in New Product Development. Skills to develop concepts,
designs and prototype products, manufacturing fixtures, test equipment are assets on which
the business is built. The Company handles both Product Engineering Design and Product
Industrial Design.
Metlab:
Roots state-of-the-art Metrology Laboratory is a comprehensive calibration centre in
the South India that offers mechanical, electrical, torque, pressure and vacuum calibration
instrumentsall under one roof. The expertise of the laboratory has attracted the renowned
Public and Private Sector undertaking.
Roots Polycraft:
Roots Polycraft (PC) was established in 1988 to manufacture precision plastic
components. It is equipped with latest microprocessor injection moulding machines to
maintain consistent process parameters. Over the years, Polycraft has gained skills and
unique techniques to manufacture small and medium size components for Automotive,
Pump, Textile, and Medical Industries besides meeting the captive requirements of Roots
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Group. Being fully equipped to provide the best service, Polycraft has satisfied customers
who have helped augment its technological advances.
The Company's commitment towards the customer is demonstrated with quality products
and service. This has resulted in continuous growth and product diversification. The process
is closely monitored with proven techniques to obtain consistently good quality parts.
1.2.1 ROOTS -VISION STATEMENT:
We will stand technologically ahead of others to deliver world-class innovative products
useful to our customers. We will rather lose our business than our customers' satisfaction. It is
our aim that the customer should get the best value for his money.
Every member of our company will have decent living standards. We care deeply for our
families, for our environment and our society. We promise to pay back in full measure to the
society by way of selfless and unstinted service.
1.2.2 QUALITY:
They are committed to provide world-class products and services with due concern for the
environment and safety of the society.
This will be achieved through total employee involvement, technology up gradation, cost
reduction and continual improvement in
-Quality of the products and services-Quality Management system-Compliance to QMS requirements
Quality will reflect in everything we do and think
-Quality in behavior-Quality in governance-Quality in human relation
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Quality - An All Pervasive Entity
Roots is committed to manufacture customer-centric and technology-driven products on
par with international quality standards. For example, the horns manufactured undergo a
rigorous life-cycle test and are subjected to an endurance of over 200,000 cycles of
performance while the industry norm requires only 100,000.
Roots believe in a quality culture that goes beyond just products. Equal emphasis is given
to quality in human relation and quality in service. Roots in its journey towards Total Quality
Management have reached important milestones: ISO 9001, QS 9000, VDA 6.1, ISO/TS
16949 and ISO 14001 Certification, presently in the process of obtaining NABL accreditation
for our Metrology lab. The Group's TQM policy has a well-integrated Quality CircleMovement with active employee participation at various levels.
1.2.3 ENGINEERING:
The Engineering Research Centre (ERC) is involved in the continuous improvement and
enhancement of design to increase performance and reliability. The ERC functioning under
three distinct heads cater to the needs of Roots Industries, Roots Multiclean and Roots Auto
Products.
Though there is a three-pronged operational ethos, the ERC is integrated and meshed
seamlessly with one single objective: that of design research and performance monitoring.
Through extensive product engineering, the ERC cell of ROOTS achieves the following:
- Designing and developing new products with customer focus.
- Conducting required tests to ensure product reliability.
- Initiating necessary corrective and preventive action for ensuring peak
performance
- Fine-tuning products with available components to satisfy customer
requirements
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The ERC consists of the best talent that includes engineering graduates, ITI brains and
design engineers. The team works with top-notch tools like
- Proe2000i2 - for solid modelling- AutoCAD 2000 - for Drafting- CorelDraw V 8.0 - for Graphical Applications
1.2.4 PEOPLEVALUABLE ASSET:
Roots has a strong people-oriented work culture that can be seen and felt across all its
member concerns. Whether they work in group or in isolation, their effort is well appreciated
and achievements well rewarded. They have a sense of belonging and they revel in an
environment of openness and trust. Cross-functional teams function as one seamless whole
and foster the true spirit of teamwork.
Roots as a learning organization systematically train its employees at all levels.
Conducted in-house, the training programmes equip them to meet new challenges head on.
Employees are encouraged to voice their feelings, ideas and opinions. There is a successful
suggestion scheme in operation and best suggestions are rewarded.
Lasting relationship will evolve only when people know that their work is valued and that
they contribute meaningfully to the growth of the organization. At Roots, people across the
group companies, through interactions at workshops and seminars, get to know each other
individually, share their common experiences and learn something about life.
Personal Culture
The management has been encouraging and promoting a very informal culture, "Personal
touch", sense of belonging, enabling employees to become involved and contribute to the
success of the company. The top management also conscientiously inculcates values in the
people.
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Work Environment
Special and conscious efforts are directed towards housekeeping of the highest order.
Renovation and modernization of office premises and office support systems are carried out
on an ongoing basis.
Training
Roots believe in systematic training for employees at all levels. As a part of the
Organizational Development efforts, training programmers are being conducted in-house, for
employees at all levels. In addition, staffs are also sponsored for need based training
programmers at leading Management Development Institutes.
Total Quality Management
Customer Focus is not merely a buzzword but it has become an important factor of every
day work and has got internalized into the work environment. There is an equal emphasis on
internal customer focus leading to greater team efforts and better cross-functional
relationship.
Quality Circle Movement
To ensure worker participation and team work on the shop-floor, Roots Industries India
Ltd has a very effective Quality Circle Movement in the organization. As on today Roots
Industries India Ltd has 3 operating Quality Circles having 24 members and some of them
have won awards at different conventions and competitions.
Through interaction with workmen in these sessions, a process of 2-way communication
has been initiated and valuable feedback has been received on worker feelings, perception,
problems and attitudes. Simultaneously management has communicated the problems faced
by them and the plans to overcome these problems.
1.2.5 ROOTSPRODUCT RANGE:
Roots Industries specializes in the manufacture of a wide range and line-up of automobile
horns. Roots is a leading supplier to all the major vehicle manufacturers like Ford, Daimler
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Chrysler, Mitsubishi Lancer, Mahindra & Mahindra, Toyota, Tata Motors, Fiat Uno and
Siena, TELCO, TVS Motor Company, Kinetic Honda, etc.
Roots Industries India Ltd places a premium on original technology and innovation. Roots'
indigenous talent has kicked off a spree of growth unmatched in the history of automobile OE
manufacturers.
1.2.6 GLOBAL ALLIANCES FOR COMPETITIVE ADVANTAGE:
Roots is a leading Original Equipment supplier to major vehicle manufacturers like
Mercedez Benz, Mitsubishi, Mahindra & Mahindra, Toyota, Fiat, TELCO, Harley
Davidson, Navistar etc. The ever demanding requirements of Customer Satisfaction has
strengthened the R & D activities and increased Roots technical competence to international
standards.
Roots Multiclean Ltd. (RMCL) is a joint venture with Hako Werke GmbH & Co.,
Germany, one of the largest cleaning machine manufacturers with global operations. RMCL
is the sole representative in India and SAARC countries for Hako Werke's entire range of
cleaning equipment. The quality of RMCL products is so well established that Hako buys
back a major portion for their global market.
RMCL also represents several global manufacturers of cleaning products and is
gearing itself up to provide customized, total cleaning solutions.
1.2.7 MILESTONES:
1970 Promotes American Auto Service for manufacture of Electric Horns.
1972 First to manufacture Servo Brakes for Light Motor Vehicles.
1984 Roots Auto Products Private Limited was established to manufacture Air Horns.
Die Casting Unit commences commercial operations.
1988 Polycraft, a unit for Plastic Injection Moulding was established.
1990 Roots Industries India Ltd takes over Electric Horn business.
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1992 RMCL enters into Techno-Financial collaboration with M/s. Hako Werke GmbH, Germany.
1992 Roots Industries India Ltd obtains the National Certification - ISI mark of quality.
1994 Production of floor cleaning equipment commences. Roots Industries India Ltd wins American
International Quality Award.
1999 Becomes the first horn manufacturer in Asia to obtain QS 9000
2000 Becomes the first horn manufacturer in Asia to obtain VDA 6.1 and the first in the world to win
ISO / TS 16949
2000 The first to introduce digitally controlled air horns and low frequency, low decibel irritation free
Jumbo Air Horns.
2003 Roots Industries India Ltd., Horn Division is accredited with ISO 14001 : 1996
2003 Roots Industries India Ltd., upgraded its ISO / TS 16949 from 1999 version to 2002 version
2004 Roots Industries India Ltd (RIL) opens its 100% exclusive Export Oriented Unit at their Horn
Division, Thoppampatti, Coimbatore to cater the needs of Ford North America.
2004 RIL's EOU commences its supplies to Ford, North America
2004 Roots Multiclean Limited (RMCL) inaugurates its 100% EOU Plant at Kovilpalayam,
Coimbatore
2004 Roots Cast Private Limited (RCPL) inaugurates its Unit II at Arugampalayam, Coimbatore
2004 Roots Auto Products Pvt Ltd (RAPPL) expands with its Machining Division at Arugampalayam,
Coimbatore
2004 RIL successfully launches its Malaysian Plant
2004 The group company American Auto Service is accredited with ISO 9001 : 2000
2005 Roots Industries India Ltd., is certified with MS 9000, a pre-requisite for Q1 award for Ford
Automotive Operations Suppliers. Focus on Systems and Processes
2005 Roots Metrology & Testing Laboratory has been accredited by National Accreditation Board for
testing & calibration in the field of MechanicalLinear & Angular
2005 Roots Industries India Ltd., is awarded Q1 by Ford Motor Company
2005 Roots Industries India Ltd., Horn Division upgraded its ISO : 14001 from 1996 version to 2004
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1.3 STATEMENT OF PROBLEM:
Global competition is based on reduced waste, good product quality, efficiency and
cost reduction. Toyota in Japan was the first manufacturing company to develop and apply
lean manufacturing practices through Toyota production systems.
Lean manufacturing is a manufacturing strategy that seeks to attain a high level of
throughput with a minimum of inventory. One of the prime focuses of lean manufacturing is
to reduce waste by eliminating what does not add value to the bottom line of the organization.
Lean six sigma was subsequently introduced as another wing of lean manufacturing.
It focuses mainly on delighting the customer by meeting and exceeding product quality and
speed of delivery and in so meeting the organizational goal.
Value stream mapping is a combination of lean manufacturing and lean six sigma.
Value stream mapping is a method of visually mapping the flow of raw materials through all
the manufacturing process until final product stage. Value stream mapping has the following
benefits:
Helps to visualize the production process at plant level and not just the process. It is aholistic concept.
Helps one see the source of waste in the organization. It shows the linkage between information flow and material flow. It forms the basis of the implementation plan and serves as a point of departure in the
improvement of manufacturing processes.
It ties together lean concepts and other manufacturing techniques to enableimprovements that are reflected in the organizations bottom line.
Multinational companies that reside in India have started implementing lean
manufacturing techniques. They have implemented Ford production system and Toyota
production system.
Roots cast a major casting producer in India and as a global competitor is not exempted
from these world best practices. Roots cast are currently using kanban system to control
manufacturing process, which is not even applied consistently throughout the organization.
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There are daily material shortages which lead to wasted time and inability to meet daily
output and customer demand. This tendency subsequently leads to lost profits and customer
dissatisfaction.
Raw material is received and accepted by inventory staff without proper inward
inspection. Raw material defects are only identified during manufacturing process. This also
leads to lost production and wasted time through rework.
Die casted materials are returned to inventory store as work in progress. This material
gets drawn from inventory stores to production lines. This is a time consuming flow. This
process described above leads to the discussion that Roots cast has poor quality systems that
fail to delight the customers. Roots cast is always behind on agreed delivery schedules withthe customers.
This leads to the research question mentioned below which will be addressed by this
research: How can Value stream mapping at Roots cast be used to add value to the bottom
line?
1.3.1 Sub problems
In developing the research strategy that will resolve the main problem, the following
sub problems were identified:
What manufacturing best practices are suggested by the literature? How is Roots cast applying manufacturing processes from the receipt of raw
material through production processes to the release of product to the customer?
How can the results obtained from the resolution of the first sub problem beintegrated and implemented in Roots cast?
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CHAPTER 2
OBJECTIVES AND SCOPE OF RESEARCH
2.1OBJECTIVE OF THE RESEARCH:
The result of this research would increase awareness of Roots cast management of the
available world best manufacturing practices like Lean manufacturing, Lean Six Sigma and
Value Stream Mapping.
2.2 SCOPE OF THE RESEARCH:
Applying the lean concept would increase Roots competitiveness by improving productivity,
quality; reduce waste, cost saving, and customer satisfaction.
It would also produce motivated workforce through working smarter rather than working
harder. In addition, it could result in integrated and holistic approach to manufacturing. As
Roots cast strive to be a globally competitive organization, the application of the best
practices, with particular reference to manufacturing was be considered and adapted to suit
Roots.
2.3 KEY ASSUMPTIONS:
In this research it was assumed that:
Assumption One:
Top management, from the chief executive officer to production foreman level, arecommitted and have successfully driven the implementation process.
Assumption Two:
A strong culture of productivity is entrenched within the organization.
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Assumption Three:
All employees were involved in the manufacturing process are well trained to perform their
function.
Assumption Four:
All employees take personal responsibility for their work and are competent.
Assumption Five:
An output measurement method was developed, through which employees can be monitored
and measured.
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CHAPTER 3
REVIEW OF LITERATURE
3.1 INTRODUCTION:
The information gathered in this chapter was used to help the researcher to implement
the relevant methodology when conducting value stream mapping at Roots cast.
The purpose of the organization may be earning profit for its owners. The mission
statement of the same organization may be offer a full service or product. The distinction
between the mission statement and the purpose of the organization can be a fine one. The
goals at the highest levels of abstraction express an organizations overall purpose, whereas
goals at the lower level are relatively specific as shown in figure below:
Figure No:
3.1.1
According to Smith, the well-managed business has goals in eight areas as follows:
Market standing
Innovation Productivity
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Physical and Financial resources Profitability Manager performance and development
Work performance and Attitude Public responsibilityThese areas can be performed successfully with the application of Lean Manufacturing
principles and Value Stream Mapping.
As global competition intensifies, achieving best practice and would class performance is
not just a desirable goal, it is a necessity for survival. Globally active companies today are
applying best practices in the form of Lean Thinking, Lean Six Sigma, Lean Manufacturing,
Value Stream Mapping et cetera. These manufacturing practices are discussed in the next
section.
3.2 LEAN MANUFACTURING:
Lean manufacturing has dramatically lifted the competitiveness of many
manufacturing companies and the value they deliver to the customers.
Smalley states that core elements of Lean Manufacturing were developed in Japan at
Toyota Motor Corporation between 1950 and 1955. The following key concepts were tested
under strict supervision during the development of lean manufacturing:
Task time, which is the desired time between units of production output and issynchronised to customer demand.
Process flow, which is relates to both material and information flows betweencustomer and suppliers who work together in a supply chain.
Standard work, which is found where the method of doing work has been planned andwritten in detail and to perform the same each time.
Single minute exchange of die (SMED) refers to the set up time or exchange of die thatcan be counted in a single digit of minutes.
Pull system, this is a system of planning and producing strictly acc to the customerdemand.
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In order to ensure that basic stability in the manufacturing process is achieved, the
following points must serve as a yard stick:
Availability of machine uptime to meet customer demand. Availability of material to meet production needs. Availability of trained employees to handle the current manufacturing processes. Availability of clearly defined work methods as basic instructions or Standard
Operating Procedures (SOPs).
Lean manufacturing is providing more and more with less human effort, less equipment,
less inventories, less time and less space while coming closer and closer to providing
customers with exactly what they want and when they want it.
Lean manufacturing is used in companies that pursue zero waste relentlessly in all
processes and operations. It is about operating the most efficient and effective organisation
possible with the least cost and zero waste.
The main goals of a lean organisation within a manufacturing process are the elimination
of waste and continued efforts to:
Provide world class customer service. Reduce manufacturing lead times. Increase labour efficiencies. Improve product quality. Increase labour flexibility. Increase market flexibility. Reduce inventories and. Lower the cost of overheads.
3.3 LEAN MANUFACTURING PRINCIPLES:
The organisations that subscribe to lean manufacturing practices focus on the reduction
of waste and the creation of value in all its processes. They continually improve their products
through research and development. Products that do not perform in the market are removed
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from the production lines and new ones are introduced through the results from market
research. Following are the principles to enhance lean manufacturing in order to ensure that
processes followed to produce products do add value to the bottom line of the organisation.
No buffer of safety stock
The authors point out that making only few parts before assembling before assembling them
makes mistakes to show instantly. It is therefore important not to retain buffer stock.
Work Teams
An important aspect is to group workers together into teams with Team Leaders rather than a
foreman. This allows shop floor employees to make decisions regarding their activities in the
manufacturing processes.
New Material Handling Systems
New ways are sought to coordinate the flow of parts within the supply system on a day-to-day
basis. These systems include the Just- In-Time system called KANBAN at Toyota.
New Model Development Time
Firms take a long time to change production and model specification in mass production and
are expensive. By contrast, a pre- eminent manufacturer such as Toyota needs half the time
required by mass production to design a new product. This means that Toyota can offer twice
as many cars with the same resources and budget. Having a competitive advantage over your
competitor is very important in the global market.
Demand fulfilment
All the variety available from lean manufacturing would be enought if the organisation could
not build or produce what the customer needs. Meeting the customer requirements is a key to
lean manufacturing. On time delivery of quality goods to the customers specification is
important for customer satisfaction.
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Make to order
At Toyota, the dealers become part of the production system. Build to stock system does not
add value to the organisations bottom line as products produced are kept in stock rather than
being sold to customers.
Customer involvement
Toyota focused relentlessly on repeat buyers and went directly to them to plan for the new
product. They added value and had a contribution in the development process of the cars.
Shop floor involvement
All information pertaining to daily production targets, equipment breakdowns, personnel
shortages, overtime requirements and so forth are displayed on the boards (Electronically
lighted displays) that are visible from every work station. Information sharing with employees
is important. It enables them to know how the business is performing.
Idea Stimulation
Employees must be encouraged to think actively, indeed proactive so they can devise solutions
before problems become serious. Employees are the source of solutions as they are involved in
Everyday processes and have long term experience of certain processes. Involving employee
leads to then taking ownership of the organisation and thinking proactively to resolve
problems.
3.4 LEAN MANUFACTURING GOALS:
The main goals of a lean organisation are the elimination of waste and continued efforts to:
Provide world class customer service. Reduce manufacturing lead times. Increase labour efficiencies.
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Improve product quality. Increase market flexibility. Reduce inventories.
Lower the costs of overheads.
Lean manufacturing addresses all aspects of business from strategic planning to
maintenance, engineering, work culture, information management and production systems.
Smooth flow of production is important in a manufacturing organisation. Lean manufacturing
strives to reduce waste of material and time that results from a manufacturing process that is
not operating and flowing smoothly. Continuous and smooth production flow is a key attribute
of lean manufacturing.
3.5 VALUE STREAM MAPPING:
Value Stream Mapping is all the, both value adding and non-value adding in the
process. These actions are required to bring the product through the processes flows that are
essential for every product. The product flows from new material into the hands of the
customer and the design of the product flows from concept to launch.
It is important that waste, in manufacturing processes be reduced to an absolute minimum.
Other organisations like Goodyear Tyre Manufacturers, Ford Motor Company of South Africa
and General Motors South Africa measure their efficiency on waste. Tar gets are set for waste
on each and every process and explanations accompanied by corrective action plans are
expected from the department manager. Waste in manufacturing is all the efforts that do not
add value to the final product from the point of view of the customer. The following are the
actions in reducing waste:
Reduce variability in the manufacturing process Reduce the share of non-value adding activities Reduce lead time Simplify by minimising the number of steps, parts and linkages Increase flexibility
Value stream mapping is all about mapping all the process steps, each individual action
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involved in the process of physical production and order taking for specific products.
3.6 VALUE STREAM MAPPING AND PROCESS FLOWS:
Following are the process flow tools:
Process Mapping: This is a process where the analysts observes and documents theprocess steps through the production line. It is recommended that walking the floor
and talking to staff asking questions about the process must be done when mapping the
process. Flowcharts get into detail only on processes that will be helpful to identify the
problem.
SIPOC (Suppliers, Inputs, Process, Output and Customer): This is a simple diagramthat identifies the basic elements of the process. It is a good tool for translating
customer requirements into output requirements and identifying Key Process Outputs
(KPOs).
These tools are use for various purposes as suggested below:
Visually documents and processes, including key data as captured on the value streammap.
Provides fact-based process description as a basis for understanding current problems(poor flow, rework loops and delays) and opportunities to improve.
Enables the team to quickly see improvement opportunities in the process and begin todefine underlying causes.
Helps the team to see how the process should work (future state) once they eliminatewaste.
Helps communicate inside and outside the organisation
A value stream is all the actions both the value added and non value added currently
required to bring a product through the main flows essential to every product. The flows are
the production flow from raw material into the arms of the customer and the design flow from
concept to launch. Value stream mapping analyses the current state and converts it to the
future state, having identified and eliminated all the non value added activities in the
production flow.
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Rother and Shook (2003) state the following reasons why value stream mapping is an essential
tool:
It helps one to visualise not only the single process, but the entire flow. It helps one see the sources of waste in the value stream. It provides a common language for talking about manufacturing processes. It makes the decisions about flows apparent so one can discuss them. It ties together lean concepts and techniques. It forms the basis of an implementation plan. Value stream becomes a blueprint for
lean implementation.
It shows the linkage between the information flow and the material flow.
It is much more useful than other quantitative tools and layout diagrams that produce atally of non value added steps, lead time, distance travelled, and the amount of
inventory. Value stream mapping is a qualitative tool by which one describes in detail
how the facility should operate in order to create flow.
3.7 VALUE ADD VERSUS NON-VALUE ADD ANALYSIS:
The above analysis is used to highlight and distinguish process steps that customers are willing
to pay for from those they are not.
Identify and eliminate the hidden costs that do not add value for the customer. Reduce unnecessary process complexity which results in errors. Reduce the process lead time. Increase capacity by better utilisation of resources.
Value add activity
This is any activity that is essential to deliver the product or service to the customer. It must
be performed to meet customer needs and add form or feature to the product or service. It
must also enhance quality and have an impact on price competition.
Business non-value adding activities
These are activities that are required by the business to execute value adding work but add no
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value from the customer perspective. These activities usually include:
Tasks that reduce financial risk.
Support financial reporting requirement. Aids in execution of value add work. Is required by law or regulation.
Non Value adding activities
These are activities that add no value to both the customer and the business, they are waste.
These activities include:
Excessive handling and transportation. Rework to fix errors that should not have happened in the first place. Waiting and role time and delays. Over production. Over processing, having too many steps in a production process.
Value stream mapping has fundamental pillars that are aimed at ensuring that the customer
reaps from the benefits of the service or commodity. It does not only apply within the
confines of manufacturing and team manufacturing processes. It also ensures that these
benefits are derived from the economies of scale. Economic value mapping properly
distinguishes between the values of highly differentiated products benefits compared to the
generally commoditised benefits. Commodity and product value are the worth of the benefits
associated with the features of a product that resemble those of competitors product.
Once the Value Stream Mapping is done properly during the manufacturing stage of the
product, Customer Value Model surfaces. The customer value model has value in use as one
of its four different categories.
Value in use is the monetary worth of product or service benefits received by the customer as
a result of using the product or service.
Value Stream Analysis focuses on a specific process of the business and map out the
steps of how something is currently done. It identifies value added aspects of the business
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operation or manufacturing process that equate to steps required to put actual value into
producing a product. Now value added time is the time that is devoted to activities that
diminish the operations of the business and the actual production of the product. An analysis
of the process in most businesses finds that value adding activities are actually a small
percentage of the process time.
3.8 LEAN THINKING:
Lean Thinking is a way to specify value, line up value creating actions in the last sequence.
Lean Thinking has five key principles namely: -
Specify value
Value is expressed in terms of specific product or services, delivered at a specific price, at a
specific time and meets the needs defined by the customer.
Identify the value
Prepare that value stream in the macro view of the entire door-to-door perspective of
productions, from raw materials to delivery. It includes the determination of all actions
necessary to produce a product and the separation of non-value adding activities. This
includes not only the physical transformation of the physical product, but also the information
system necessary to produce the right quantity at the right time.
Flow
Once waste has been eliminated, flow can be accomplished. Flow is the opposite of batch
production and requires the movement of product from one value adding step to the next with
no waiting or scrap.
Pull
Pull is the production of customer requirements against specified delivery dates. Information
travels upstream from the customer, signalling production only when a need is shown instead
of pushing product from raw materials to the customer.
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Perfection
Continuous improvement is vital for to perfection, where waste is constantly being
eliminated. Perfection reminds manufacturers that reducing waste is never ending. Lean is
not a specific control tool, improvement tool, floor layout or principle. It is the methodology
or framework that focuses on the ideas of value, waste and meeting customer demand.
Womack and Jones also state that Value Stream Mapping resulted as a of determining where
the value and waste are located and aids in the reduction of lead time to help make the right
product at the right time. The 5 key principles of lean thinking are illustrated below to further
explain the philosophy.
Lean Thinking is about putting value stream for specific products relentlessly in the
foreground and rethinking every aspect of jobs, careers, functions and firms in order to
correctly specify value and make it flow continuously along the whole length of the stream as
pulled by the customer in pursuit of perfection.
3.9 LEAN SIX SIGMA:
Lean Six Sigma is an improvement method which user data to eliminate and identify
unnecessary processes or activities in a certain process. It has four foundations that are
fundamental to improving processes and keeping the customer happy at all times.
To delight the customers by delivering high quality product and service at low cost andhigh speed.
To improve processes by eliminating defects in products and service and focus on theflow of work through the process.
Implement teamwork for sharing ideas in order to solve the problem. Basing all decisions on data.
3.10 SOURCES OF WASTE:
Womack and Jones (2003:42) refer to over production as the main source of waste. According
to Womack, over production strives to produce sooner than required by the customer in the
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form of mass production.
It is based on pushing production according to schedules received from the Production
Control instead of the needs of the waste stream process and end user.
Over production causes all kinds of waste, not just excess inventory and money tied up to it. It
production requires storage space for product that has been produced unnecessarily. It
requires handling, people, equipment sorting and reworking of products. It also leads to
material and product shortages as resources are tied up an unnecessary product. Money is
wasted in that extra capacity must be created to manufacture the required part or product.
Womack and Jones (1996:38) also refer to the following types of waste in addition to
overproduction. :
Waiting- this is time wasted where resources are ideally waiting for the precedingoperation.
Transporting- this is time wasted transporting an item from one operation to the other. Over processing- it normally happens where the product or service has met the desired
or specified condition the process still continues.
Inventory- this is material in stock that gets wasted due t o the fact that it is not neededfor production.
Motion- when motion is excessive, it becomes waste.
There are three measurements which express the goal of making money in any organisation,
which helps a manager to develop the operational rules for running the plant.
Throughput- the rate at which the system generates money through sales. Inventory- all the money the organisation has invested in purchasing material for
production.
Operational expenses- all the money the company spends is converting inventory intothrough put.
A company that strives to make profits will focus on reducing waste and unnecessary
activities, which leads to waste time and material.
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3.11 CONCLUSION
Value Stream mapping and all Lean Manufacturing principles have been around and applied
for a long time. Companies that have applied Lean manufacturing principles in their processes
have improves their productivity and reduced waste. Toyota is an example. Literature also
confirms that proper use of lean manufacturing principles has yielded good results and
improved the manufacturing efficiencies.
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CHAPTER 4
RESEARCH DESIGN AND METHODOLOGY
4.1 INTRODUCTION:
This chapter explains the research tools that have been applied by the researcher to
collect data analyse and interpret results. In this study, the researcher seeker to understand the
current situation and process followed by Roots cast. Results obtained were analysed and used
as a measure to decide on the appropriate production process to be implemented. Researchmethods are a programme that guides the researcher in collecting, analysing and interpreting
data and facts. The following tools were used in this research:
4.2 TOOLS USED IN THIS RESEARCH:
4.2.1 Interviews
There are many possible ways of gathering information directly from participants if
such information cannot be observed. One of these direct ways of gathering information
directly from participants is by interviews. An interview involves direct personal contact with
the participant who is asked to answer questions.
There are two types of interviews, namely, non- scheduled structured interview and
scheduled structured interview. Non-scheduled structured interview is structured in that a list
of issues which have to be investigated is made prior to the interview. It is non-scheduled inthat the interviewer is free to formulate other questions as judged appropriate for the given
situation.
The most structured way of getting information directly from the respondents is by
means of scheduled structured interview. This method is based on an established questionnaire
with fixed wording and sequence of presentation. The researcher used a scheduled structured
questionnaire in this research.
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Non Structured Interviews were conducted among production foreman and managers
at Roots cast by the researcher to establish the attitudes of production foreman and managers
towards manufacturing process as well as to evaluate the current manufacturing system.
4.2.2 Advantages and disadvantages of interviews:
Advantages
The interviewer is able to assess the extent to which the respondent is prepared to co-operate and the constraints that may affect co-operations. Constraints may be lack of
time, fatigue and other priorities the respondent may have.
In many cases, the researcher is able to assess whether the respondent is answeringquestions to please the researcher or to distort reality.
The researcher is also able to assess the extent to which the interview is asking for theinformation the respondents do not have.
Interviews ensure that the respondent understands the questions.
Disadvantages
Interviews are very time-consuming and expensive. Research assistants need training. May introduce interviewer bias.
4.2.3 Time Studies
The purpose of conducting time studies was to determine time taken to perform a
specific activity in the process. Line balancing and activity sampling was also conducted to
ensure that all operators are fully and equally utilised on the production line. Results obtained
from the time studies suggested that certain stations were idling for longer periods. A decision
was taken to select activities that must be eliminated or combined.
Accurate time study was conducted to determine the cycle time, the time it takes to
transfer material from inventory stores to production lines as well as determining time lost
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waiting for material. The value stream map was drawn, showing the current state from which
a future state value stream map could be drawn, with recommendations.
The results of literature survey and the empirical survey were integrated to develop a
value stream map that would reduce waste, eliminate unnecessary processes and add value to
the organizations profit line.
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CHAPTER 5
CURRENT STATE MAPPING
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RCPL
Production
Control
DIE
CASTING
.5
C/O
Min
1
Cycle
Time
Min
100
UP
TIME
%
0
C/O
Min
7
Cycle
Time
Min
100
UPTIME
%
FETTLING
HPED
INTERMEDIATE
STORE
(INSPECTION)
0
C/O
Min
1440
Cycle
Time
Min
100
UPTIME
%
MACHINIG 2
C/O
Min
5
Cycle
Time
Min
100
UPTIME
%
FINAL
INSPECTION
0
C/O
Min
5
Cycle
Time
Min
100
UPTIME
%
S
URFACE
TR
EATMENT
2
C/O
Min
5
Cycle
Tim
e
Min
100
U
P
TIM
E
%
FINAL
INSPECTION
0
C/O
Min
10
Cycle
Time
Min
100
UP
TIME
%
Customer
1day
1.5mins
2
d
ays
7mins
2days
1day
18days
1day
1day
7mins
2days
5mins
1day
7mins
10mins
14days
CurrentStateMapFor
ADAPTER-16135841
01
d
Figure No: 5.1 Current State mapping - Adapter
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RCPL
Production
Control
DIE
CASTING
.5
C/O
Min
1
Cycle
Time
Min
100
UP
TIME
%
0
C/O
M
in
10
Cycle
Time
M
in
100
UPTIME
%
FETTLING
HPED
INTERMEDIATE
STORE
(INSPECTION)
0
C/O
Min
1440
Cycle
Time
Min
100
UPTIME
%
MACHINIG 2
C/O
Min
3
Cycle
Time
Min
100
UPTIME
%
FINAL
INSPECTION
0
C/O
Min
15
Cycle
Time
Min
100
UPTIME
%
IM
PRIGNATION
0
C
/O
Min
5
Cycle
T
ime
Min
100
UP
TIME
%
FINAL
INSPECTION
0
C/O
Min
10
Cycle
Time
Min
100
UP
TIME
%
Customer
1day
1.5mins
2days
10mins
2days
1day
30days
1day
1day
5mins
2days
15mins
1day
5mins
10mins
14d
ays
CurrentStateMapFor
F
ADENFUEHRUNG-
ACW-5-2929
d
Figure No: 5.2 Current state mapping- Faden
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RCPL
Production
Control
DIE
CASTING
.5
C/O
Min
1
Cycle
Time
Min
100
UP
TIME
%
0
C/O
Min
5
Cycle
Time
Min
100
UPTIME
%
FETT
LING
HPED
INTERMEDIATE
STORE
(INSPECTION)
0
C/O
Min
1440
Cycle
Time
Min
100
UPTIME
%
MACHINIG 2
C/O
Min
3
Cycle
Time
Min
100
UPTIME
%
FINAL
INSPECTION
0
C/O
Min
5
Cycle
Time
Min
100
UPTIME
%
IMPRIGNATION
0
C/O
Min
10
Cycle
Time
Min
100
UP
TIME
%
FINAL
INSPECTION
0
C/O
Min
10
Cycle
Time
Min
100
UP
TIME
%
Customer
1day
1.5mins
2days
5m
ins
2days
1day
20days
1day
1day
5mins
2days
5mins
1day
10mins
10mins
14days
CurrentStateMapFor
LARGERSCHITTEN-
D
OUBLE4-340.37.0010
d
Figure No: 5.3 Current state mapping- Largershitten Double
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RCPL
Production
Control
DIE
CASTING
.5
C/O
Min
1
Cycle
Time
Min
100
UP
TIME
%
0
C/O
Min
15
Cycle
Time
Min
100
UPTIME
%
FETTLING
HPED
INTERMEDIATE
STORE
(INSPECTION)
0
C/O
Min
1440
Cycle
Time
Min
100
UPTIME
%
MACHINIG 2
C/O
Min
8
Cycle
Time
Min
100
UPTIME
%
FINAL
INSPECTION
0
C/O
Min
10
Cycle
Time
Min
100
UPTIME
%
S
URFACE
TR
EATMENT
2
C/O
Min
13
Cycle
Tim
e
Min
100
UP
TIM
E
%
FINAL
INSPECTION
0
C/O
Min
10
Cycle
Time
Min
100
UP
TIME
%
Customer
1day
1.5mins
2
days
15mins
2days
1day
10days
1day
1day
10mins
2days
10mins
1day
15mins
10mins
14days
CurrentStateMapFor
HousingFUnloader-1622
171305
d
Figure No: 5.4 Current state mapping- Housing F Unloader
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Inference
Based on the Current State Map the total manufacturing times for the following components
are found to be:-
1. Adapter-1613584101 : 43 days 38 mins2. C77 Housing-16226141 : 115 days45mins3. Fadenfuehrung-ACW-5-2929 : 55 days 45 mins4. Lagerschlitten-double-4-340.37.0010 : 45 days 37 mins5. Housing F Unloader-1622 1713 05 : 34 days 62 mins
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CHAPTER 6
IMPLEMENTATION OF FUTURE STATE MAP AND
IMPROVEMENTS
6.1 Comparison between Current and Future State maps.
Current State Future State
1. Material delivered in bulk by supplier to
inventory stores and then released to the
production line
2. Buffer stock between stations maintained at
five days stock.
3. Capturing of received material by
inventory stores.
4. Physical and bulk withdrawal of material
by Production Planners and transported to the
lines.
1. Material delivered to straight to
Supermarket in the production lines.
Withdrawn from Supermarket when required
for production. Material is delivered in the
basis of Just- In Time principle.
2. Buffer stock reduced to one and a half days
between stations.
3. Electronic communication between
Supermarket and inventory stores in material
received.
4. Withdrawal and use of material by
operators from Supermarkets No distance
travelled.
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RCPL
Production
Control
DIE
CASTING
.5
C/O
M
i
n
1
Cycle
Time
M
i
n
100
UP
TIME
%
0
C/O
Min
7
Cycle
Time
Min
100
UPTIME
%
FETTLING
INTERMEDIATE
STORE
(INSPECTION)
0
C/O
Min
1440
Cycle
Time
Min
100
UPTIME
%
MACHINIG 2
C/O
Min
5
Cycle
Time
Min
100
UPTIME
%
FINAL
INSPECTION
0
C/O
Min
5
Cycle
Time
Min
100
UPTIME
%
SURFACE
TREATMENT
2
C/O
Min
5
Cycle
Time
Min
100
UP
TIME
%
FINAL
INSPECTION
0
C/O
Min
10
Cycle
Time
Min
100
UP
TIME
%
Customer
1day
1.5mins
1day
7mins
1day
1day
1day
7mins
2days
5mins
1day
7mins
10mins
7days
FutureStateMapFor
ADAPTER-1613
584101
d
Figure No: 6.1 Future state mapping- Adapter
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RCPL
Production
Control
DIE
CASTING
.5
C/O
Min
1
Cycle
Time
Min
100
UP
TIME
%
0
C/O
Min
5
Cycle
Time
Min
100
UPTIME
%
FETT
LING
INTERMEDIATE
STORE
(INSPECTION)
0
C/O
Min
1440
Cycle
Time
Min
100
UPTIME
%
MACHINIG 2
C/O
Min
5
Cycle
Time
Min
100
UPTIME
%
FINAL
INSPECTION
0
C/O
Min
5
Cycle
Time
Min
100
UPTIME
%
SURFACE
TREATMENT
2
C/O
Min
10
Cycle
Time
Min
100
UP
TIME
%
FINAL
INSPECTION
0
C/O
Min
10
Cycle
Time
Min
100
UP
TIME
%
Customer
1day
1.5mins
1day
5m
ins
1day
1day
1day
7mins
2days
10mins
1day
12mins
10mins
7days
FutureStateMapFor
C77Housing-1622
6141
00
d
Figure No: 6.2 Future state mapping- C77 Housing
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RCPL
Production
Control
DIE
CASTING
.5
C/O
Min
1
Cycle
Time
Min
100
UP
TIME
%
0
C/O
Min
5
Cycle
Time
Min
100
UPTIME
%
FETTLING
HPED
INTERMEDIATE
STORE
(INSPECTION)
0
C/O
Min
1440
Cycle
Time
Min
100
UPTIME
%
MACHINIG 2
C/O
Min
3
Cycle
Time
Min
100
UPTIME
%
FINAL
INSPECTION
0
C/O
Min
5
Cycle
Time
Min
100
UPTIME
%
IMP
RIGNATION
0
C/O
Min
10
Cyc
le
Tim
e
Min
100
UP
TIM
E
%
FINAL
INSPECTION
0
C/O
Min
10
Cycle
Time
Min
100
UP
TIME
%
Customer
1day
1.5mins
1da
y
5mins
2days
1day
5days
1day
1day
5mins
2days
5mins
1day
10mins
10mins
7days
FutureStateMapFor
LA
RGERSCHITTEN-
DOU
BLE4-340.37.0010
d
Figure No: 6.3 Future state mapping- Largershitten Double
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RCPL
Production
Control
DIE
CASTING
.5
C/O
Min
1
Cycle
Time
Min
100
UP
TIME
%
0
C/O
Min
15
Cycle
Time
Min
100
UPTIME
%
FETTLING
HPED
INTERMEDIATE
STORE
(INSPECTION)
0
C/O
Min
1440
Cycle
Time
Min
100
U
PTIME
%
MACHINIG 2
C/O
Min
8
C
ycle
T
ime
Min
100
UP
TIME
%
FINAL
INSPECTION
0
C/O
Min
10
Cycle
Time
Min
100
UPTIME
%
SU
RFACE
TRE
ATMENT
2
C/O
Min
13
CycleTime
Min
100
UPTIME
%
FINAL
INSPECTION
0
C/O
Min
10
Cycle
Time
Min
100
UP
TIME
%
Customer
1day
1.5mins
1day
15mins
2days
1day
5day
1day
1day
10mins
2days
10mins
1day
15mins
10mins
7days
FutureStateMapFor
HousingFUnloader-16
22
171305
d
Figure No: 6.4 Future state mapping- Housing F Unloader
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CHAPTER 7
SUGGESTIONS, FINDINGS & CONCLUSION
7.1 SUGGESTIONS
Lean manufacturing techniques can be implemented in order to reduce inventorylevels at each stage.
Transportation of components from RCPL to HPED should have bulk quantities sothat HPED can start machining without keeping inventories.
Initial delay in production must be avoided and production must be startedimmediately after receiving the order.
HPED must have fully dedicated machines for RCPL in order to deliver the productswithout any delay.
It is also recommended that Roots cast ensures that their suppliers are made aware ofthe value stream mapping process and material requirements and forecasts have
changed.
In all future process improvement initiatives, employees must be informed and trainedso that they take ownership of the process.
7.2 FINDINGS
Based on the Future State Map the total manufacturing times for the following components
are found to be:-
1. Adapter-1613584101 : 15 days 38 mins2. C77 Housing-16226141 : 15 days 45mins3. Fadenfuehrung-ACW-5-2929 : 22 days 45 mins4. Lagerschlitten-double-4-340.37.0010 : 22 days 37 mins5. Housing F Unloader-1622 1713 05 : 23 days 62 mins
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7.3 SUMMARY OF RESEARCH
The use and benefits of lean manufacturing principles were identified. When the researcher
conducted this research, it became clear that the industry is in desperate need of leanmanufacturing principles. The enthusiasm and co-operation that was rendered by labour
unions, management and production foremen was a clear indication of the desperation.
The literature study that was conducted in chapter two presented the researcher with a number
of lean manufacturing options to choose from. Due to the fact that not all of the options were
pertinent to the casting industry, Value Stream Mapping was implemented as it was more
relevant.
The results presented to the researcher the benefits of having management and labour buy-in
when implementing a new initiative in the organisation. Roots cast was always operating
inefficiently, the results suggest. With the involvement of management and labour from the
start of the tr eaties, it became a success.
7.4 BENEFITS BROUGHT ABOUT BY THE RESEARCH
The research brought about the following benefits:
Cost saving on material
Cost saving initiatives was implemented during the research. Cost savings came from
procuring less material, which was only delivered to the; lines as opposed to the stores.
Material was wasted as it was procured in bulk and kept in stock. During transportation from
stores to the production lines, material was damaged as it was transported on trailers. Due to
the fact that material was no more transported in this manner, there were no more material
damages.
Cost saving on labour
With the improvements made in the future state map, operators were utilised more effectively
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and were idling time was eliminated. The combining of welding and inspection stations also
led to effective operator utilization. Values add per employee also improved in the financial
statements.
7.5 CONCLUSION
This research was conducted in Roots cast. Management and labour was involved throughout
the process of implementation of Value Stream Mapping in the manufacturing process.
The value stream mapping identified inefficiencies in the process of die casting where
employees were idling for longer period of time, resulting in wasted capacity. Operations thatwere utilised inefficiently were combined in order to be more efficient and value adding. This
was done to address the main problem of Roots Industries of how to implement value stream
mapping in Roots cast in order to eliminate activities in the die casting process that do not add
value to the bottom line of the organisation.
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BIBILIOGRAPHY
Lean Production Simplified by Pascal Dennis Advanced Material Handling, 2nd Ed., Production Technology, Nag, Second edition (1988) www.leanadvisors.com/valuestreammapping.cfm www.wisegreek.com/whatis lean manufacturing.html http://www.valuebasedmanagement.net/methods_value_stream_mapping.html http://www.igrafx.com/solutions/vsm/
http://www.leanadvisors.com/valuestreammapping.cfmhttp://www.leanadvisors.com/valuestreammapping.cfm