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An exhaustive case study of Lean Manufacturing
CHAPTER-1
INTRODUCTION
1.1 Background
This research addresses the application of lean manufacturing
concepts to the continuous production/ process sector. After World
War II, Japanese manufacturers, particularly in the automotive industry,
were faced with the dilemma of shortages of material, financial, and
human resources. Eiji Toyoda and Taiichi Ohno at the Toyota Motor
Company in Japan pioneered the concept of the Toyota Production
System, or what is known today in the US as Lean Manufacturing.
The basic idea behind the system is eliminating waste. Waste is defined
as anything that does not add value to the end product from the
customers perspective. The primary objective of lean manufacturing
is to assist manufacturers who have a desire to improve their
companys operations and become more competitive through the
implementation of different lean manufacturing tools and techniques.
Quickly following the success of lean manufacturing in
Japan, other companies and industries, particularly in the US, copied
this remarkable system .The term lean as Womackand Jones (1994 )
define it denotes a system that utilizes less ,in terms of all inputs, to
create the same outputs as those created by a tradition mass
production system, while contributing increased varieties for the
end customer Lean is to manufacture only what is needed by the
customer, when it is needed and in the quantities ordered. The
manufacture of goods is done in a way that minimizes the time taken
to deliver the finished goods, the amount of labor required,
and the floor-space required, and it is done with the highest quality,
and usually, at the lowest cost.
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1.2 Problem Statement
Major businesses in the India have been trying to adopt new
business initiatives in order to stay alive in the new competitive
market place. Lean manufacturing is one of these initiatives that
focus on cost reduction by eliminating non-value added activities.
These tools and techniques of lean manufacturing have been widely
used in the discrete industry starting with the introduction of the
original Toyota Production System. Tools including just in time,
cellular manufacturing, total productive maintenance, single-
minute exchange of dies, and production smoothing have been
widely used in discrete parts manufacturing sectors such as
automotive, electronic and appliance manufacturing.
Applications of lean manufacturing to the continuous
process industry have been far fewer Inpart , it has been argued that
this is because such industries are inherently more efficient and
present relatively less need for such improvement activities
Managers have also been hesitant to adopt lean manufacturing
tools and techniques to the continuous process industry because of
reason such has high volume and low variety products, large
inflexible machines, and the long setup times that characterize the
process industry. As an example, it is difficult to use
the cellular manufacturing concept in a process facility due to the fact
that equipment is large and not easy to move.
While it seems that some lean manufacturing tools are
difficult to adapt in the process industry, others are not .For
example, This project is driven by the fact that while researchers and
practitioners have widely used lean manufacturing tools in the
discrete industry, nobody has systematically investigated how to
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apply lean tools and techniques to a continuous process facility
due to the differences exhibited between the two manufacturing
environments. In order to compete in todays global competitive
market the continuous process industry also needs to look for more
ways to gain a competitive edge.
1.3 Project Objective
The goal of this research is to investigate how the tools of
lean manufacturing can be adapted from the discrete to the
continuous manufacturing environment and to evaluate their
benefits at a specific industrial concern and then to apply in the
workshop of S.R.M.G.P.C. . Although the process and discrete
industry share several common characteristics, there are also areas
where they are very different. Both manufacturing settings have
overlap, but at the extreme, each has its unique characteristics. The
objective is to look at commonalities between discrete and
continuous manufacturing where lean techniques from the discrete
side are directly applicable, and to also examine ways to do so in
other areas where this may not be quite so straightforward.
The objective is to systematically demonstrate how lean
manufacturing tools when used appropriately can help the process
industry to eliminate waste, have better inventory control, better
product quality, and better overall financial and operational
procedures. In this research the S.R.M.G.P.C workshop will be used
to represent the continuous process industry, and much of the work
will be carried out at an actual production facility.
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1.4 Project Approach
The initial step in this research is to systematically study
and define the history of the lean manufacturing concept and its
different tools and techniques. It will then examine where most of
the lean tools and techniques have been used. This will be
followed by a literature review of the process industry and a study of
the findings regarding applications of lean concepts to continuous
manufacturing, and the Hindustan Aeronautics Limited in particular.
The next step is to develop the continuous process industrywith respect to its product/process characteristics and the relative
balance of discrete and continuous operations. This taxonomy is used
to contrast the process industry and to characterize the process
industry into distinguishable groups. Next, this is used to examine
and identify specific lean manufacturing tools and techniques that
could be applicable.
To study the effect of lean tools in the process sector the
Hindustan Aeronautics Limited is used to illustrate the procedures of
implementing lean tools at a process facility. Firstly this is used to
identify sources of waste and then identify lean tools to try to reduce
this waste then develop a system with lean tools applied to it.
Secondly, a simulation model is developed to quantify the benefits
gained from using lean tools and techniques.
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CHAPTER-2
LITERATURE REVIEW2.1 The History of Lean
After World War II Japanese manufacturers were faced with
the dilemma of vast shortages of material, financial, and human
resources The problems that Japanese manufacturers were faced with
differed from those of their Western counterparts. These conditions
resulted in the birth of the lean manufacturing concept Toyota
Motor Company, led by Its president Toyoda recognized that
American automakers of that era were out producing their Japanese
counterparts; in the mid 1940s American companies were
outperforming their Japanese counterparts by a factor of ten In order
to make a move toward improvement early Japanese leaders such as
Toyoda Kiichiro, Shigeo Shingo ,and Taiichi Ohnodevised a new,
disciplined, process oriented system, which is known today as the
Toyota Production System, or Lean Manufacturing., who was
given the task of developing as system that would enhance
productivity at Toyota is generally considered to be the primary
force behind this system. Ohno drew upon some ideas from the
West, and particularly from Henry Fords book Today and
Tomorrow. Fords moving assembly line of continuously flowing
material formed the basis for the Toyota Production System After
some experimentation, the Toyota Production System was developed
and refined between 1945 and 1970, and is still growing today all
over the world. The basic underlying idea of this system is to minimize
the consumption of resources that add no value to a product.
In order to compete in todays fiercely competitive market, US
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manufacturers have come to realize that the traditional mass
production concept has to be adapted to the new ideas of lean
manufacturing. A study that was done at the Massachusetts Institute of
Technology of the movement from mass production toward lean
manufacturing, as explained in the book The Machine That
Changed the World (Womack, Jonesand Ross, 1990), awoke the
US manufacturers from their sleep. The study underscored the great
success of Toyota at NUMMI (New United Motor Manufacturing
Inc.) and brought out the huge gap that existed between the
Japanese and Western automotive industry. The ideas came to be
adopted in the US because the Japanese companies developed,
produced and distributed products with half or less human effort,
capital investment, floor space, tools, materials, time, and overall
expense(Womacketal.,1990)
2.2 What is Lean Manufacturing?
Much as mass production was the production system
of the 20th century, lean manufacturing, which focuses on the
elimination of waste in the production process, has been
heralded as the production system of the 21st century.
Although the Japanese automaker Toyota pioneered the
concept, the term lean manufacturing itself was coined in
the early 1990s by three researchers from the Massachusetts
Institute of Technology. The National Institute of Standards and
Technology (NIST) Manufacturing Extension Partnerships Lean
Network offers the following definition of lean manufacturing:
A systematic approach to identifying and eliminating
waste through continuous improvement, flowing the product at the
pull of the customer in pursuit of perfection. Although the
definition can be brief, it is packed with information .First,
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the approach to becoming lean must be systematic. You can
try to improve certain areas of the business and have some
degree of success, but to truly realize the benefits of lean, you
must start with an overall strategy and put it into place in the
right order. Second, a lean strategy focuses on eliminating
waste. Later in this paper, we will learn about common types
of waste and the methods used to identify and eliminate them.
Third, it is important to note the phrases continuous
improvement and pursuit of perfection. Perfection can never
be achieved, but each step closer increases the profitability
and viability of the company. The process of developing a
lean enterprise never ends. Lean is not a destination but a
journey. There is always something else that you can do to
reduce waste or improve a process.
2.3 What Is Lean?
The new uprising in the manufacturing goods and service
sector has created great challenges for US industry. The customer
driven and highly competitive market has rendered the old-fashionedmanagerial style an inadequate tool to cope with these challenges.
These factors present a big challenge to companies to look for new
tools to continue moving up the ladder in a global, competitive,
growing market. While some companies continue to grow based on
economic constancy, other companies struggle because of their lack
of understanding of the change of customer mind-sets and cost
practices. To get out of this situation and to become more profitable,
many manufacturers have started to turn to lean manufacturing
principles to elevate the performance of their firms.
The basic ideas behind the lean manufacturing system, which
have been practiced for many years in Japan, are waste elimination,
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cost reduction, and employee empowerment. The Japanese
philosophy of doing business is totally different than the philosophy
that has been long prevalent in the US. The traditional belief in the
west had been that the only way to make profit is to add it to the
manufacturing cost in order to come up with a desired selling price.
On the contrary, the Japanese approach believes that customers
are the generator of the selling price. The more quality one builds into
the product and the more service one offers, the more the price that
customers will pay. The difference between the cost of the product
and this price is what determines the profit. The lean manufacturing
discipline is to work in every facet for eliminating waste in order to
reduce cost, generate capital, bring in more sales, and remain
competitive in a growing global market. The value stream is defined
as the specific activities within a supply chain required to design,
order and provide a specific product or value. The term lean, as
Womack and his colleagues defined, denotes a system that utilizes
less, in term of all inputs, to create the same outputs as those
created by a traditional mass production system, while contributing
increased varieties for the end customer (Panizzolo, 1998). This
business philosophy goes by different names Just-in-time
manufacturing, world class manufacturing, and continuous flow are all
terms that are used in parallel with lean manufacturing. So the
resounding principle of lean manufacturing is to reduce cost through
continuous improvement that will eventually reduce the cost of services
and products, thus growing more profits.
Lean focuses on abolishing or reducing wastes (or
muda, the Japanese word for waste) and on maximizing or fully
utilizing activities that add value from the customers perspective.
From the customers perspective, value is equivalent to anything that
the customer is willing to pay for in a product or the service that
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follows. So the elimination of waste is the basic principle of lean
manufacturing. For industrial companies, this could involve any of
the following (Womack et al., 1990; Ohno, 1997; Monden, 1998;
Shingo, 1997; Mid-America Manufacturing Technology Center,
2000):
Material: Convert all raw materials into end products. Try to avoid excess raw
materials and scrap.
Inventory: Keep constant flow to the customer and to not have idle material.
Overproduction: Produce the exact quantity that customers need, and when they
need it.
Labor: Get rid of unwarranted movement of people.
Complexity: Try to solve problems the uncomplicated way rather
than the complex way. Complex solutions tend to produce more waste
and are harder for people to manage
Energy: Utilize equipment and people in the most productive ways
Avoid unproductive operations and excess power utilization.
Space: Reorganize equipment, people, and workstations to get a better space
arrangement.
Defects: Make every effort to eliminate defects.
Transportation: Get rid of transportation of materials and information that does
not add value to the product.
Time: Avoid long setups, delays, and unexpected machine downtime.
Unnecessary Motion: Avoid excessive bending or stretching and frequently lost
items.
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Waste sources are all related to each other and getting rid of one
source of waste can lead to either elimination of, or reduction in
others. Perhaps the most significant source of waste is inventory.
Work-in-process and finished parts inventory do not add value to a
product and they should be eliminated or reduced. When inventory is
reduced, hidden problems can appear and action can be taken
immediately. There are many ways to reduce the amount of
inventory, one ofwhich is reducing production lot sizes. Reducing
lot sizes however, should be followed by a setup time reduction so
as to make the cost per unit constant as the famous economic
order quantity formula states. At Toyota, Shingo developed the
concept of single minute exchange of reduce set up times (Shingo,
1997); for instance, setup times in large punch presses could be
reduced from hours to less than ten minutes. This has a big effect on
reducing lot sizes. Another way to reduce inventory is by trying
to minimize machine downtime (Shingo, 1997). This can be done by
preventive maintenance. It is clear that when inventory is reduced
other sources of waste are reduced too. For example, space that was
used to keep inventory can be utilized for other things such as to
increase facility capacity. Also, reduction in setup times as a means to
reduce inventory simultaneously saves time, thus is reducing time as a
source of waste.
Transportation time is another source of waste. Moving parts
from one end of the facility to another end does not add value to the
product. Thus, it is important to decrease transportation times within
the manufacturing process. One way to do this is to utilize a cellular
manufacturing lay out to ensure a continuous flow of the product.
This also helps eliminate one other source of waste, which is energy.
When machines and people are grouped into cells, unproductive
operations can be minimized because a group of people can be fully
dedicated to that cell and this avoids excess human utilization.
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Another source of waste is defects and scrap materials . Total
productive maintenance is one way to eliminate defects and scrap
Manufacturing parts that are fault-free from the beginning has
profound consequences for productivity (Hayes and Clark,
1986).
There is no question that the elimination of waste is an essential
ingredient for survival in todays manufacturing world. Companies
must strive to create high-quality, and low cost products that can reach
the customers in the shortest time possible. There are sets of tools
that were developed at Toyota and that can be utilized to eliminate or
at least reduce the sources of waste.
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CHAPTER-3
TOOLS AND TECHNIQUES OF LEAN
MANUFACTURING
Once companies pinpoint the major sources of waste,
tools such as continuous improvement, just-in-time production,
production smoothing, and others will guide companies through
corrective actions so as to eliminate waste. In the following sections a
brief description of such tools is given.
3.1 Cellular Manufacturing
Cellular manufacturing is one of the cornerstones when
one wants to become lean. Cellular manufacturing is a concept that
increases the mix of products with the minimum waste possible. A
cell consists of equipment and work-stations that are arranged
in an order that maintains a smooth flow of materials and
components through the process. It also has assigned operators who
are qualified and trained to work at that cell.
Arranging people and equipment into cells has great advantage
in terms of achieving lean goals. One of the advantages of cells is
the one-piece flow concept, which states that each product moves
through the process one unit at a time without sudden interruption,
at a pace determined by the customers need. Extending the productmix is another advantage of cellular manufacturing. When customers
demand a high variety of products as well as faster delivery
rates, it is important to have flexibility in the process to
accommodate their needs. This flexibility can be achieved through
grouping similar products into families that can be processed on the
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same equipment in the same sequence. This will also shorten
the time required for changeover between products, which will
encourage production in smaller lots. Other benefits associated with
cellular manufacturing include:
Inventory reduction.
Reduced transport and material handling.
Better space utilization.
Lead time reduction.
Identification of causes of defects and machine problems.
Improved productivity.
Enhanced teamwork and communication.
Enhanced flexibility and visibility
3.2 Kaizen(Continuous Improvement)
Kaizen(Continuous improvement) is another fundamental
principle of lean manufacturing. It is a systematic approach to
gradual, orderly, continuous improvement. In manufacturing settings
improvements can take place in many forms such as reduction of
inventory, and reduction of defective parts.
The first deals with moving those items that are not
currently being used on a continuous basis (e.g., items that will not
be used for the next month or so) away from those that are. Moving
those items and tossing away needless items will make material flow
smoothly, and workers move and work easily (Feld, 2000)
This will make it easier to move those items that are not
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labeled from that area. Arranging items in the right place will
make tools, jigs, fixtures, and resources noticeable, detectable, and
easy to use (Feld, 2000).
It deals with cleaning and sweeping the work place
methodically. The workplace should look neat and clean and
ready to use for the next shift. The work place should be
maintained on a regular basis (e.g., daily). All tools and items
should be in the right place and nothing should be missing. A well-
maintained workplace creates a healthy environment to work with
(Feld, 2000).
It is also maintaining a high standard of house-keeping and
workplace arrangement. If every area has people assigned to it then
everyone has responsibility to maintain a high standard of
housekeeping and cleaning (Feld, 2000).
It is managements accountability to train people to follow
house- keeping rules. Management should implement the house-
keeping rules in a practiced fashion so that their people can adjust
themselves accordingly. Management should keep surveying the
shop floor, explain what they want from people, reward those who
follow and instruct those who do not (Feld, 2000) .
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Fig 3.1
3.3 Standardization of Work
A very important principle of waste elimination is the
standardization of worker actions Standardized work basically
ensures that each job is organized and is carried out in the most
effective manner. No matter who is doing the job the same level of
quality should be achieved. At Toyota every worker follows the
same processing steps all the time. This includes the time
needed to finish a job, the order of steps to follow for each job, and the
parts on hand By doing this one ensures that line balancing is
achieved, unwarranted work-in-process inventory is minimized and
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Document
Reality
Go to
Gemba
Observe
Poi
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Identif
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Waste
Root
Causes
Use the
tools
Apply
the
tools
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Elimination
Solution
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the new
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Lock in the
new
standard
Visual
controls
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non-value added activities are reduced.
3.4 Total Productive Maintenance
Machine breakdown is one of the most important issues that
concern the people on the shop floor. The reliability of the
equipment on the shop floor is very important since if one
machine breaks down the entire production line could go down.
An important tool that is necessary to account for sudden machine
break downs is total productive maintenance In almost any lean
environment setting a total productive maintenance program is very
important.
There are three main components of a total productive
maintenance program preventive maintenance, correctivemaintenance,
and maintenance prevention. Preventive maintenance has to do with
regular planned maintenance on all equipment rather than random
check ups. Workers have to carry out regular equipment maintenance to
detect any anomalies as they occur. By doing so sudden machines
breakdown can be prevented, which leads to improvement in the
throughput of each machine. Corrective maintenance deals with
decisions such as whether to fix or buy new equipment. If a
machine is always down and its components are always breaking
down then it isbetter to replace those parts with newer ones.
As a result the machine will last longer and its uptime will
be higher. Maintenance prevention has to do with buying the right
machine. If a machine is hard to maintain (e.g., hard to lubricate or
bolts are hard to tighten) then workers willbe reluctant to maintain
the machine on a regular basis, which will result in a huge amount
of lost money invested in that machine.
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3.5 5 S
There are no world class manufacturing companies without the 5 Ss in
place.The 5 Ssprovide the foundation for any manufacturing business wishing tostart along the path of Continuous Improvement. The 5 Ssprovide a structure forsupporting Productivity, Quality and Health & Safety. The 5 Ssfosters a sense ofgenuine pride and personal ownership in the work environment. The 5 Ssform acommon sense approach to a better working environment.The 5 Ss are based on 5Japanese words; these have been translated into 5 English equivalents. First S refers
to Sort for Japanese word Seiri, it means to determine which materials are necessary
in the area. Second S refers to Straighten for Japanese word Seiton, it means to
remove unnecessary items from the workplace. Third S refers to
Sweep for
Japanese word Seiso, it means to clean up the workplace & perform routine
maintenance. Fourth S refers to Standardise for Japanese word Seiketsu, it means to
have a place for everything or to have everything in its place. Fifth S refers to Self
Discipline for Japanese word Shitsuke, it means making the previous 4 Ss part of
every day life and sustainable, and to promote a self disciplined culture.
Fig.3.2
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3.5.1 Introduction
5S is a system to reduce waste and optimize productivity
through maintaining an orderly workplace and using visual cues to
achieve more consistent operational results. Implementation of this
method cleans up and organizes the workplace basically in its
existing configuration, and it is typically the first lean method which
organizations implement.
The 5S pillars, Sort (Seiri), Set in Order (Seiton), Shine (Seiso),
Standardize (Seiketsu), and Sustain (Shitsuke), provide a methodology
for organizing, cleaning, developing, and sustaining a productive work
environment. In the daily work of a company, routines that maintain
organization and orderliness are essential to a smooth and efficient
flow of activities. This lean method encourages workers to improve
their working conditions and helps them to learn to reduce waste,
unplanned downtime, and in-process inventory.
A typical 5S implementation would result in significant
reductions in the square footage of space needed for existing
operations. It also would result in the organization of tools and
materials into labeled and color coded storage locations, as well as
kits that contain just what is needed to perform a task. 5S provides
the foundation on which other lean methods, such as TPM, cellular
manufacturing, just-in-time production, and six sigma can be
introduced.
3.5.2 Method and Implementation Approach
5S is a cyclical methodology: sort, set in order, shine,
standardize, sustain the cycle. This results in continuous improvement.
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3.5.3 The 5S Pillars
3.5.3.1. Sort
Sort, the first S, focuses on eliminating unnecessary items from
the workplace that are not needed for current production operations.
An effective visual method to identify these unneeded items is called
red tagging, which involves evaluating the necessity of each item in
a work area and dealing with it appropriately. A red tag is placed on all
items that are not important for operations or that are not in the proper
location or quantity. Once the red tag items are identified, these items
are then moved to a central holding area for subsequent disposal,
recycling, or reassignment. Organizations often find that sorting
enables them to reclaim valuable floor space and eliminate such things
as broken tools, scrap, and excess raw material.
3.5.3.2. Set In Order
Set In Order focuses on creating efficient and effective storage
methods to arrange items so that they are easy to use and to label them
so that they are easy to find and put away. Set in Order can only be
implemented once the first pillar, Sort, has cleared the work area ofunneeded items. Strategies for effective Set In Order include painting
floors, affixing labels and placards to designate proper storage
locations and methods, outlining work areas and locations, and
installing modular shelving and cabinets.
3.5.3.3 Shine
Once the clutter that has been clogging the work areas is
eliminated and remaining items are organized, the next step is to
thoroughly clean the work area. Daily follow-up cleaning is necessary
to sustain this improvement. Working in a clean environment enables
workers to notice malfunctions in equipment such as leaks, vibrations,
breakages, and misalignments. These changes, if left unattended, could
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lead to equipment failure and loss of production. Organizations often
establish Shine targets, assignments, methods, and tools before
beginning the shine pillar.
3.5.3.4 Standardize
Once the first three 5Ss have been implemented, the next pillar
is to standardize the best practices in the work area. Standardize, the
method to maintain the first three pillars, creates a consistent approach
with which tasks and procedures are done. The three steps in this
process are assigning 5S (Sort, Set in Order, Shine) job responsibilities,
integrating 5S duties into regular work duties, and checking on the
maintenance of 5S. Some of the tools used in standardizing the 5S
procedures are: job cycle charts, visual cues (e.g., signs, placards,
display scoreboards), scheduling of five-minute 5S periods, and
check lists. The second part of Standardize is prevention preventing
accumulation of unneeded items, preventing procedures from breaking
down, and preventing equipment and materials from getting dirty.
3.5.3.5 Sustain
Sustain, making a habit of properly maintaining correct
procedures, is often the most difficult S to implement and achieve.
Changing entrenched behaviors can be difficult, and the tendency is
often to return to the status quo and the comfort zone of the old way
of doing things. Sustain focuses on defining a new status quo and
standard of work place organization. Without the Sustain pillar the
achievements of the other pillars will not last long. Tools for sustaining
5S include signs and posters, newsletters, pocket manuals, team and
management check-ins, performance reviews, and department tours.
Organizations typically seek to reinforce 5S messages in multiple
formats until it becomes the way things are done.
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3.5.4 Potential Benefits
Painting the machines and the equipment light colors and
cleaning the windows, often done under the Shine pillar, decreases
energy needs associated with lighting.
Painting and cleaning makes it easier for workers to notice
spills or leaks quickly, thereby decreasing spill response. This can
significantly reduce waste generation from spills and clean-up.
The removal of obstacles and the marking of main thoroughfares
decreases the potential of accidents that could lead to spills and
associated hazardous waste generation (e.g., spilled material, absorbent
pads and clean up materials).
Regular cleaning, as part of the Shine pillar, decreases the
accumulation of cuttings, shavings, dirt, and other substances that can
contaminate production processes and result in defects. Reduction in
defects has significant environmental benefits (e.g., avoided materials,
wastes, and energy needed to produce the defective output; avoided
need to dispose of defective output)
5S implementation can significant reduce the square footage
needed for operations by organizing and disposing of unused
equipment and supplies. Less storage space decreases energy needed to
heat and light the space.
Organizing equipment, parts, and materials so they are easy to
find can significantly reduce unneeded consumption. Employees are
more likely to finish one batch of chemicals or materials before
opening or ordering more, resulting in less chemicals or materials
expiring and needing disposal.
5S visual cues (e.g., signs, placards, scoreboards, laminated
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procedures in workstations) can be used to raise employee
understanding of proper waste handling and management procedures,
as well as workplace hazards and appropriate emergency response
procedures. 5S techniques can be used to improve labeling of
hazardous materials and wastes. In addition, environmental procedures
often are separate from operating procedures, and they are not easily
accessible to the workstation. 5S implementation often result is easy to
read, laminated procedures located in workstations. Integration with 5S
visual cues and operating procedures can improve employee
environmental management.
3.5.5PotentialShortcomings
Regularly painting and cleaning machines and equipment could
lead to increased use of paints and cleaning supplies. Paints and
cleaning supplies may contain solvents and/or chemicals that can result
in air emissions or increased waste generation.
Disposing of unneeded equipment and supplies creates a short-
term surge in waste generation. In some cases, there may be unlabeled
wastes that could be hazardous. Failure to involve environmental
personnel in waste handling could result in some wastes being
disposed improperly or in lost opportunities for reclamation or
recycling.
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Fig 3.3
3.6 From Lean Manufacturing to Lean Enterprise
The elimination of waste is a process that examines the
system as a whole .The big picture is to look at the interdependent
segments of the company starting from raw materials to distribution
and sales of finished goods.
The lean enterprise can be defined as a group of
individuals, functions, and legally separate but operationally
synchronized companies. By managing the whole system we are
looking to manage the value adding activities holistically and not as a
sum of separate parts. Making of an enterprise lean means that
workers, managers, suppliers, and customers are all considered
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as powerful assets of the company.
Managers have recognized that in order to deliver to the
customer satisfaction and thebest quality product, the organization
must focus on the critical main processes rather than concentrating
on individual functions or departments These processes should serve
two main objectives. The first is to make the customer believe in the
organization as a qualified provider of a product, and the second is to
demonstrate a capability that will win an order. To accomplish this,
companies and managers should put more efforts to elevate the
whole enterprise as opposed to focusing on the performance of
persons, functions, and parts of the company.
Lean enterprise is an extension of lean manufacturing.
However, lean enterprise goes further by concentrating on the firm,
its employees, its partners, and its suppliers, to bring value to the
customer from his or her perspective. The lean enterprise tries to line
up and coordinate the value creating process for a finished product
or service along the value stream. It tries to thoroughly examine all
the steps that are needed to bring a new product or service from ideato production, from order to delivery, and from raw material to final
delivered product. These steps can be perfectly accomplished by
including all parties involved. All processes are continually examined
against the customer's definition of value, and non-value added
activities and waste are forcefully and methodically eliminated.
There are three different types of activities that exist in
almost all organization:
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3.6.1 Value adding activities:
These include all the activities that the customer envisions as
valuable either in a product or as a service. Examples include
converting iron ore (with other things) into cars, forging raw material,
and painting a car body. To define a value adding activity, one should
ask if a customer would be willing to pay for the activity.
3.6.2 Necessary non-value adding activities:
These are activities that in the eye of the final customerdo not
make a product or service more valuable but are necessary under
the current operating conditions. Such waste is difficult to removeimmediately and should be targeted for longer-term change.
Examples include walking long distances to pick up parts, or
unpacking vendor boxes. These can be removed by changing the
current layout of a line or organizing vendor items to be delivered
unpacked.
3.6.3 Unnecessary non-value adding activities:
These include all the activities that the customer envisions
as not valuable either in a product or as a service, and are also not
necessary under the current circumstances. These activities are pure
waste and should be targeted for immediate removal. Examples
include waiting time, stacking of products and double transfers.
There are a lot of companies that are implementing lean
manufacturing. However, many of these are still coping with
mastering the idea due a lack of understanding of its core concepts.
So it might seem that when companies are still not capable of lean
manufacturing they should not even look ahead to a lean enterprise.
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3.7 Supply Chain Management
The greater expectation of customers, the fierce
competitive market and the flow of materials to the market with
shorter lead-times have forced many companies to focus more on
their supply chain management. A typical supply chain consists
of raw material suppliers, manufacturers, distributors, and end
customers. Raw materials are shipped to the production facility
where they get converted to end-products and then those end-products
are shipped to the end users (customers). In order to minimize cost
and waste throughout the system, effective supply chain
management and integration are required starting from the rawmaterials and finishing with the end customer.
Supply chain management is a set of approaches utilized
to efficiently integrate suppliers, manufacturers, warehouses, and
stores, so that merchandise is produced and distributed in the right
quantities, to the right locations, and at the right time.
In order to become lean, a company must have an integrated
supply chain starting from the front (suppliers), through the middle
manufacturers and distributors), to the end(customers).Thus total cost
and waste starting from transportation and distribution to raw
material, work in process, and finished goods must all be minimized.
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CHAPTER-4
Application of Lean in the workshop ofS.R.M.G.P.C
Lean is applied using 5 S under Kaizen and very satisfying
results has been obtained. Kaizen sheets have been attached and
photographs have been taken which are shown below.
4.1 Red tagging
Firstly we have studies the whole area of the workshop and the
areas containing the waste and that can be used for other purpose have
been red tagged.
fig 4.1 fig 4.2
Fig 4.3 fig 4.4
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4.2 Kaizen Sheets
MECHANICAL WOKSHOP
SRMGPC, Lucknow
KAIZEN EVENT SCOPE SHEET 1:-
Event Description: Red tagging of all the unwanted items/
wastes and their removal.
Preliminary Objective:
1. Keeping only the required items in workshop.
2. Quick retrieval of all the jobs and work pieces.
3. Providing a data of all the items which are of some
significance in other departments,
4. Locating wastes and their removal.
Event Time: - 4 to 9 April 2011.
Team Meeting Area: CAD Lab
Team Leader: Aman Sharan
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TARGET ACHIEVEMENT SHEET
table 1
M.E. Department SRMGPC, lucknow 30
Sl
No
.
Measure
s
Present Targ
et
Achieve
d
Improve
ment
1.
Information
Retrieval
Time( Online
through ERP)
300
seconds
15
seconds
30
seconds
90 %
2. Man
Movement
140
meters
70
meters
90 meters 35.71%
3. 5 S Level 0.016 0.3 0.28 165 %
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TO DO STATISTICS
TOTAL
OPENED
TOTAL
CLOSED
PENDING
TO DO LIST
(EVENT)
3 3 -
TO- DO LIST
( CHANGED)
9 9 -
Table 2
KEY ACHIEVEMENT
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ONLINE DATA IMPROVEMENT
1. Improvement in online records.
2. Placement of right things at their right locations.
3. Provision of lot of space by removal of wastes to function
5S.
4. Accumulation of wastes to make a sell out to enhance funds.
5 S
1. Approx. two trolley of MUDA removed.
2. Awareness of 5 S amongst employees created.
MECHANICAL WOKSHOP
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SRMGPC, Lucknow
KAIZEN EVENT SCOPE SHEET -2
Event Description: Sorting out the raw material for variousjobs being done in workshop and their arrangement.
Preliminary Objective:
1. Locating the raw materials for various jobs.
2. Arranging work pieces in such a way to have minimum loss
of material.
3. Removal of wastes resulting from this operation.
4. Locating wastes and their removal.
5. Sorting of raw material according to their importance.
Event Time: 11 to 16 April 2011.
Team Meeting Area: CAD Lab
Team Leader: Animesh Pratap Singh
Team Members:
1. Prof. D.V. Mahendru
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2. Prof. A.K. Srivastava
3. Prof. Agnihotri
4. Mr. Dinesh
5. Aman Sharan
Current Situation and Problems:
1. Accumulation of unnecessary wastes.
2. Procurement of raw materials for work pieces is a tidy
affair.
3. No provision of sudden work piece requirement.
4. No particular inventory space for items.
TARGET ACHIEVEMENT SHEET
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TO DO STATISTICS
Table 4
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TOTAL
OPENED
TOTAL
CLOSED
PENDING
TO DO LIST
(EVENT)
3 3 -
TO- DO LIST
( CHANGED)
6 6 -
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KEY ACHIEVEMENT
ONLINE DATA IMPROVEMENT
1. Improvement in online records.
2. Placement of right things at their right locations.
3. Provision of lot of space by removal of wastes to function
5S.
4. Accumulation of wastes to make a sell out to enhance funds.
5 S
1. Approx. five trolley and one mini truck of MUDA
removed.
2. Awareness of 5 S amongst employees created.
3. Section of Quarantined Items has been defined.
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MECHANICAL WOKSHOP
SRMGPC, Lucknow
KAIZEN EVENT SCOPE SHEET -3
Event Description: Straightening out the raw material for
various jobs being done in workshop and their arrangement.
Preliminary Objective:
1. Arranging work pieces in such a way to have minimum loss
of material.
2. Removal of wastes resulting from this operation.
3. Locating of area for placing the raw material in order to have
minimum Man Movement.
4. Sorting of raw material according to their importance.
5. Fast retrieval of Work piece for making jobs
Event Time: 18 to 23 April 2011.
Team Meeting Area: CAD Lab
Team Leader: Aman Sharan
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Team Members:
1. Prof. D.V. Mahendru
2. Prof. A.K. Srivastava
3. Prof. Agnihotri
4. Mr. Dinesh
5. Animesh Pratap Singh
Current Situation and Problems:
1. Procurement of raw materials for work pieces is a tidy affair.
2. No provision of sudden work piece requirement.
3. No particular inventory space for items.
4. No Provision of fast retrieval.
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TARGET ACHIEVEMENT SHEET
Table 5
TO DO STATISTICS
TOTAL
OPENED
TOTAL
CLOSED
PENDING
TO DO LIST
(EVENT)
2 2 -
TO- DO LIST
( CHANGED)
5 5 -
Table 6
M.E. Department SRMGPC, lucknow 40
SlNo.
Measures Present Target Achieved Improvement
1. Man
Movement
(meters)
40 meters 15 meters 20 meters 50.00%
2. 5 S Level 0.40 0.70 0.66 65 %
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KEY ACHIEVEMENT
ONLINE DATA IMPROVEMENT
1. Improvement in online records.
2. Placement of right things at their right locations.
3. Provision of lot of space by removal of wastes to function
5S.
4. Accumulation of quarantined items to use them when in
shortage of raw material.
5 S
1. Approx. one trolley of MUDA removed.
2. Awareness of 5 S amongst employees created.
3. Straightening and sorting has been achieved to a satisfactory
level.
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MECHANICAL WOKSHOP
SRMGPC, Lucknow
KAIZEN EVENT SCOPE SHEET -4
Event Description: Standardization of various jobs being
done in workshop and their arrangement.
Preliminary Objective:
1. Arranging work pieces in such a way to have minimum loss
of material.
2. Allocation of persons for checking the placing the raw
material remains maintained in that order only in which it was set last
week.
3. Standardizing the fast retrieval of Work piece for making
jobs
Event Time: 25 to 30 April 2011.
Team Meeting Area: CAD Lab
Team Leader: Animesh Pratap Singh
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Team Members:
1. Prof. D.V. Mahendru
2. Prof. A.K. Srivastava
3. Prof. Agnihotri
4. Mr. Dinesh
5. Aman Sharan
Current Situation and Problems:
1. Standardization Procurement of raw materials for work
pieces is a tidy affair.
2. No Standardization of provision of sudden work piece
requirement.
3. No Standardization of particular inventory space for items.
4. No Standardization of Provision of fast retrieval.
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TARGET ACHIEVEMENT SHEET
Table 7
TO DO STATISTICS
TOTAL
OPENED
TOTAL
CLOSED
PENDING
TO DO LIST
(EVENT)
2 2 -
TO- DO LIST
(CHANGED)
15 15 -
Table 8
M.E. Department SRMGPC, lucknow 44
SlNo.
Measures Present Target Achieved Improvement
1. Man
Movement
(meters)
70 meters 20 meters 40 meters 42.85%
2. 5 S Level 0.66 0.80 0.72 9.09 %
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KEY ACHIEVEMENT
ONLINE DATA IMPROVEMENT
1. Standardization of online records.
2. Standardization in placement of right things at their right
locations.
3. Accumulation of wastes to make a sell out to enhance funds.
5 S
1. Awareness of 5 S amongst employees created.
2. Standardization of activities has achieved to a satisfactory
level.
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MECHANICAL WOKSHOP
SRMGPC, Lucknow
KAIZEN EVENT SCOPE SHEET -5
Event Description: Sustaining various changes done in the
newly configured workshop.
Preliminary Objective:
1. Sustaining the location of the raw materials for various jobs.
2. Sustaining the arrangement of work pieces in such a way tohave minimum loss of material.
3. Sustaining the removal of wastes resulting from different
operations.
4. Sustaining the locating of wastes and their removal.
5. Sustaining the sorting of raw material according to their
importance.
Event Time: 2 to 6 May 2011.
Team Meeting Area: CAD Lab
Team Leader: Aman Sharan
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Team Members:
1. Prof. D.V. Mahendru
2. Prof. A.K. Srivastava
3. Prof. Agnihotri
4. Mr. Dinesh
5. Animesh Pratap Singh
Current Situation and Problems:
1. Sustaining the standardization of procurement of raw
materials for work pieces.
2. Sustaining the standardization of provision of sudden work
piece requirement.
3. Sustaining the standardization of particular inventory space
for items.
4. Sustaining the standardization of Provision of fast retrieval.
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TARGET ACHIEVEMENT SHEET
Table 9
TO DO STATISTICS
TOTAL
OPENED
TOTAL
CLOSED
PENDING
TO DO LIST
(EVENT)
1 1 -
Table 10
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SlNo.
Measures Present Target Achieved Improvement
1. 5 S Level 0.72 1.00 0.80 11.11 %
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KEY ACHIEVEMENT
ONLINE DATA IMPROVEMENT
1. Sustaining the standardization of online records.
2. Sustaining the standardization in placement of right things at
their right locations.
3. Sustaining the accumulation of wastes to make a sell out to
enhance funds.
5 S
1. Awareness of 5 S amongst employees created.
2. Sustaining the standardization of activities has achieved to a
satisfactory level.
3. Mass campaigning of Lean Manufacturing Techniques.
4. Use of Posters and Flexes.
5. Shortage Chart.
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Chapter 5
RESULTS
Highly satisfying results have been obtained that are detailed
through data and pictures given below.
1. Removal of waste of mass about 1190 kilograms have
been removed and sold at the rate of Rs.21/kg and total amount of Rs24,990
have been accrued.
2. The site is used for maintaining the inventory which is
used for making the jobs of different shops that are
Mild steel rod(=10mm) for Smithy shop.
Mild steel rod(=20mm) for Machine shop.
Mild steel rod(=50mm) for Milling shop
Pine wood Log for Carpentry shop
Mild Steel Sheet for Welding shop.
3. Proper Placement of Quarantined Items has also been
done.
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Site before application of lean;
fig 5.1 fig 5.2 fig 5.3
fig 5.4 fig 5.5
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Site after application of lean:
fig 5.6 fig 5.7
fig 5.8 fig 5.9
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fig 5.10 fig 5.11
fig 5.12
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Noaker, P.M. editor, Strategic Cell Design,
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Kaizen Sheets
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