Question 2: How was the organizations change process managed?

Lean Implementation At Siemens Kalwa PlantCASE ANALYSIS

Prepared By:-

AMULYAKALIA(400907002)CHETANMATHUR (400907005)HARPARKARSINGH (400907007)JAGBIRPALSINGH (400907009)KARANVEERSINGH (400907012)

11Siemens Introduction First workshop, 1955Started with 10 employees55% subsidiary of Siemens AG Germany in 2009Factories in Kalwa, Nasik, Calcutta, Aurangabad and GoaReached upto 4000 employees, 11 sales offices, 23 representatives, 300 dealers, 5 factories and e-officesBecame the second largest of Siemens manufacturing operations outside GermanyFour major divisions: Industry, Energy, Healthcare and Consumer productsKalwa Works: Medium Voltage division, sole manufacturerSwitchboard: second largest MV factory outside Germany

2Need for a changeBatch Processing dampened inefficienciesErrors had a ripple effect on overall manufacturing chainIncreasing amounts of scrapIncreased customer orders: need to utilize full capacityNeed for improvement in labor productivity, lower inventory levels & higher throughput In October 2006 : Proposal to implement Lean systemsIn 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.

3THE LEAN PROGRAM4Top Management provide a very good support and clear directionProper planning in understanding the as is process and to be processLean objectives and target was communicated clearly to the whole team in Kalwa plantFormation of Implementation team to operationalize and monitorSite visit to learn from a real life lean implementationAppointment of consultant to help on the lean implementationOrganization are highly committed and motivated in implementing lean

Question 1: Has Siemens Kalwa plant been effective in achieving lean implementation?

55Increased productivity of laborReduction in inventory levels and associated costsImproved space utilizationThese Benefits promised to result inHigher throughput of panelsIncreased profits for the factory

6Benefits of ImplementationQuestion 2: How was the organizations change process managed?The company had different sections which needed to change during lean management theory for example : shop floor , design and engineering departments, vendor and suppliers All of these sections worked in traditional methods

Implementing Lean in the shop floor meant the supporting departments also need to adopt lean methodologiesLayout changesChanges in support systemChanges in vendor managementCultural changes

7In the first step two or three members of the team including Vedak had a trip to the lean plant of Maruti and they could see benefits of lean management At the same time some American consultants arrived to the Kalwa factory to cooperate with them in lean management process implementation.Managers needed to restructure layout and process to implement lean management .Obviously errors, inefficiencies and wastes were not clear before implementation, during this process managers asked every department idea to achieve efficient ways and reduce next impact between personnelThe organizations change process8Question 3: How did Khandekar handle the resistance?Since lean would involve adjustment to the process flow and directly impact the way employees had been performing their task for years, it has created resentment from various groups of employees.Khandekar attended meetings to explain to the employees the importance of lean to meet with the growing demand of panels. These meetings made and impact on the employees.The lean team hosted discussions for issues related to :Structure of teamTeam activities more mechanicalLack of coordination between the departmentsErrors in design drawingsResentment existed as employees believed it is another project by management

9Issues with WorkersBonus was linked to productivity : union wanted daily production to be five panels per day per line but management wanted eightWorkers classified as : productive and non productiveThe pace of working quickly and relaxing was now not possible

Khandekar interacted with employees and made them aware how their faults and performance resulted in loss to the organisation. This helped increase the interest of workers and employees in lean meetings.Khandekar also explained to the workers the role of lean in increasing the productivity, thus making them part of the process.

10Before going for implementation , make ensure a proper foundation in terms of knowledge and understanding of lean manufacturing by allTeach employees about what and how lean manufacturing can benefit them and the firm, this task was assigned to Mr. Gewald (global head for spearheading lean project)Lean implementation team was formed with Mr. Vedak as the lean manager and cross functional team of managers and executives.Brainstorming and awareness sessions were carried out to teach lean principles , implementation and success stories especially at Toyota.

Question 4: How was the lean implementation institutionalized in the new set-up?Analysing and identifying key steps to institutionalize lean manufacturing by lean teamLayout changes-Assembly line concept adopted, assembly lines with workstation formation.Time per workstation fixed and work content adjustedProper and efficient flow of products and worker movement also considered as important factor.To improve response time and coordination between worker and executives, a communication system was createdChanges in support systemDashboard introduced , issues to be highlighted in the board following concerned personalDisplay daily out of each assembly lines to show production progress Training and workshops organized to narrow down the skill gapsChanges identified to eliminate waste identifiedChanges in Vendor managementJIT was to focus upon ( parts available at the right time and quality)No batch supplyingLong term plans created to implement Lean principle at the vendor side whereas, short term plans to implement pull philosophy of lean systemAim is to reduce storage and inventory space in the factoryCultural changesJoint prayers and exercise sessions introduced to have feel team belongingness among internal customers.Uniform dress code introduced

Changes identified to eliminate waste identifiedA proper foundation in term of lean and its principles were laid down by educating the employees.Implementation plan was made by lean team followed by analysing the existing processes to identify waste and inefficiencies.By brainstorming , identifying ways and means to improve themLean team effort in educating and making all people from lower to top level to ensure all understand lean principles.To measure the effectiveness of the changes, continuous monitoring was done by the team itself.Actions taken to institutionalize the lean implementation in thenew set-up of the Kalwa FactoryQuestion 5: How was the lean implementation institutionalized in the new set-up?Implementation plan as shown in figure was made to ensure a smooth implementation was done.LAYOUT CHANGES5 Assembly lines were formedEach line had 6 assembly workstationsTakt time (time per workstation was fixed at 1 hour)

CHANGES IN THE SUPPORT SYSTEMInstallation of dashboards at the beginning of every lineIssues were posted by workers and shop engineers on the dash boardsThese issues were discussed on daily basis to improve the throughput and conflicts between departments and workersAlso root cause of the problem was determined and solutions to avoid them in future were notedGaps in skills were identified by skill assessment test

18CHANGES IN VENDOR MANAGEMENTOn time delivery with ensured quality.Vendors usually supplied materials in batchesWith the implementation of lean they are no longer required by batch or customer orderChallenge for both suppliers and the material planning teamVendors were presented with the benefits of the programShort term solution Suppliers can manufacture in Bulk and the company will use Pull philosophy, i.e. to pull material when neededCULTURAL CHANGESJoint prayer and exercise sessions for each assembly line at the beginning of every shift.Instill a sense of Team BelongingnessAll the members were given a T-shirt imprinted with Lean logo as a uniformsends message of team Effort19