lean implementation at siemen's kalwa plant.pptx
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Lean Implementation At Siemen’s Kalwa Plant
CASE ANALYSIS
Siemen’s Introduction
• First workshop, 1955
• Started with 10 employees
• 55% subsidiary of Siemen’s AG Germany in 2009
• Factories in Kalwa, Nasik, Calcutta, Aurangabad and Goa
• Reached upto 4000 employees, 11 sales offices, 23 representatives, 300 dealers, 5 factories and e-offices
Siemen’s Introduction Contd…
• Became the second largest of Siemen’s manufacturing operations outside Germany
• Four major divisions: Industry, Energy, Healthcare and Consumer products
• Kalwa Works: Medium Voltage division, sole manufacturer
• Switchboard: second largest MV factory outside Germany
Current Operations
Engineering Cycle
Manufacturing Cycle
Marketing Team
Sales Team
Sales Order Engineering
A B
Current Operations cont...
Manufacturing Cycle
Technical Order Processing
List of electric
al Equipm
ent
BOM
Equipment Procurement
Material Planning
Execution
Need for a change
• Batch Processing dampened inefficiencies
• Errors had a ripple effect on overall manufacturing chain
• Increasing amounts of scrap
• Increased customer orders: need to utilize full capacity
• Need for improvement in labor productivity, lower inventory levels & higher throughput
Need for a change
• In October 2006 : Proposal to implement Lean systems
• In October 2007 : Gewald, Global head of lean projects arrived at Kalwa and marked the official beginning of the project.
• The lean team was set and decided to implement for Panels and VCBs units.
THE LEAN PROGRAM
Benefits of Implementation
• Increased productivity of labor
• Reduction in inventory levels and associated costs
• Improved space utilization
These Benefits promised to result in
• Higher throughput of panels
• Increased profits for the factory
Implementation Process
• Restructuring of both the Layout and the Processes
• The current process flow chart
• Brainstorming the ways & means to make process more efficient
• But changes in processes comes at its own cost
• The resentment of people working on existing process for years
CHANGES IMPLEMENTED
• Implementing Lean in the shop floor meant the supporting departments also need to adopt lean methodologies• Layout changes• Changes in support system• Changes in vendor management• Cultural changes
LAYOUT CHANGES
• 5 Assembly lines were formed
• Each line had 6 assembly workstations
• “Takt” time (time per workstation was fixed at 1 hour)
CHANGES IN THE SUPPORT SYSTEM
• Installation of dashboards at the beginning of every line
• Issues were posted by workers and shop engineers on the dash boards
• These issues were discussed on daily basis to improve the throughput and conflicts between departments and workers
• Also root cause of the problem was determined and solutions to avoid them in future were noted
• Gaps in skills were identified by skill assessment test
CHANGES IN VENDOR MANAGEMENT
• On time delivery with ensured quality.
• Vendors usually supplied materials in batches
• And with the implementation of lean they are no longer required by batch or customer order
• Challenge for both suppliers and the material planning team
• Vendors were presented with the benefits of the program
• Short term solution – Suppliers can manufacture in Bulk and the company will use Pull philosophy, i.e. to pull material when needed
CULTURAL CHANGES
• Joint prayer and exercise sessions for each assembly line at the beginning of every shift.• Instill a sense of “Team Belongingness”
• All the members were given a T-shirt imprinted with Lean logo as a uniform• sends message of “team Effort”
The Resentment
• Resentment among people from different department: blame game started
• The lean team hosted discussions for issues related to :• Structure of team
• Team activities more mechanical
• Lack of coordination between the departments
• Errors in design drawings
• Resentment existed as employees believed it is another project by management
Issues with Workers
• Bonus was linked to productivity : union wanted daily production to be five panels per day per line but management wanted eight
• Workers classified as : productive and non productive• The pace of working quickly and relaxing
was now not possible
The Redesign Project
• Another major boost for lean implementation was the Redesign Project
• Objective: Product that could reduce the variations in existing product and reduce the overall cost
• Slow phasing out of its old product and shift entirely to new product
• Product was introduced on the lean line itself. Lean line had to handle both kinds of products
Monitoring Performance
• Switchboard management continue to report KPIs to the Siemens AG on monthly basis.
• In just one year, KPI sheets showed improvements• Throughput time on shop floor reduced by
30%
• Workers productivity increased by 30%
• The lean project ended in Oct 2008 as it had intended to be a one year project.
Thank You
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