Case Study Sri Lanka Lean Wip Reduction

Paper by James MarshVijitha RatnayakeGamini Lanarolle

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Copyright 2008 © Marsh, Lanarolle, Ratnayake

• Jim is a Lean 6 Sigma Practitioner & Management Consultant at SD&S Consulting LTD ▫ Worked in many Industries over last 13 Years as both Consultant and Senior Lecturer▫ Savings in excess of £36M from L6S Deployments▫ Managed capital investments in excess of £25m▫ Trained over 1100 people in L6S Tools & Technique

• Vijitha is a lecturer and consultant in Garment Technology and Quality Control ▫ Qualified as a Production Engineer, Worked in the garment Industry for more than six years▫ Lecturer at University of Moratuwa Sri Lanka on quality control, work study, ergonomics,

garment technology, lean manufacturing training and operational research.▫ Consultant in lean manufacturing, garment technology and operational research. ▫ Currently reading for MPhil Degree.

• Gamini is a senior lecturer in Knitting technology and lean manufacturing. ▫ Completed BSc (Eng) Bachelors degree specializing in Textile & Clothing Technology at the

University of Moratuwa, Sri Lanka in 1995. PhD was completed at UMIST, UK. ▫ Engaged in lean implementation programmes to the garment industry in Sri Lanka. ▫ Researching knitting machines for new range of fabrics and in lean manufacturing.

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Introducing the Authors

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• British Council Grant▫Awarded to University of Moratuwa and

Sheffield Hallam in 2003• Initiated Knowledge Exchange with

visits to Sri Lanka▫Development of Lean Operations course▫ Industrial visits & deployments▫Conduct educational workshops in Lean

Tools & Techniques including VSM and SPF

• Industrial Partner Chosen

Paper Background

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Sri Lanka 2005


• The Garment Industry in Sri Lanka today accounts for more than 43% of Sri Lanka’s total exports.

• Sri Lanka’s garment industry has reputation as a quality manufacturer

• Initial advantage of low labour costs has diminished• Disadvantages include ▫ low labour productivity▫ excessive lead times.

• Increases in labour productivity essential through▫ Lean manufacturing techniques▫ Value added automated systems and machinery.

• The main reason for long lead times is the lack of raw material and accessory base in addition to the market being far away.

Introduction

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• Leading Manufacturer of a large range of clothing for the international market

• Issues that they wanted to address included: -▫High WIP and its levels of variation.▫ Improve customer schedule adherence▫ Improve flexibility to style changes & small batch sizes▫Employee motivation & absenteeism

Company Profile

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Changes in Garment Style

Company Garment typeNumber of style changes per month per line2005 2006

A Blouses, pants, shirts 3 4B Night wear, lingerie 2.5 3C Jackets, pants, T-shirts 4 12D Ladies wear, children wear 2.5-3 4-5E Ladies wear, children wear 2 3F Trousers 2 2G Bras, under wear 1 3H Bras, under wear 3 5I T shirts, blouses 2 4J Lingerie 1 1K Pants, Jackets, Coats 1.2 1.2L Caps 2 3

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Issues with Small Order Quantities

Order quantities as small as 50-100When the order quantities are smaller

More style changesLow factory efficiency

As low as 30-35% compared to 55-80 normallyRequires flexible manufacturing systems

No time for proper balancing the lineQuick set-up changes needed

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Measure & Analyse

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Factory Line 1 Line 2 Line 3

Ave. WIP

CV %

Ave. WIP

CV %

Ave. WIP

CV %

Selected factory

32 164 66 146 18 134

A 22.3 127.4 28.6 134.0 48 90.4

B 23 143.2 38.2 111.4 40 112.5

C 55 79.2 20 133.5 25.2 125.2

D 32.2 150.4 41.69 96.6 34.52 118.4

E 45 122.3 30.67 105.5 29 98.7

F 44 93.2 30.58 142.7 27.07 132.4

G 31.6 99.8 29 121.2 39 135.5

H 49 117.4 20.04 131.6 27 110.3

I 39 144.5 34.2 122.7 34.05 112.5

J 32.5 92.2 26.3 123.4 27 142.3

K 28 98.4 40 105.3 39 112.4

L 29 135.2 45 103.4 33.2 108.9

M 41 155.6 37 87.7 31 132.6

N 49 99.3 20.04 112.2 22.04 165.6

Average WIP and its variation of 42 garment manufacturing lines

Statistical Analysis

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Root Cause Analysis of WIP Fluctuation

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Root Cause Analysis of WIP Fluctuation

Waiting time

RepairsUnwanted motions

Extra transpotationHigherWIP

Absenteeism

Poor line balancing

WIP Fluctuation

Machine Breakdown

Wrong instructions

Lack of multi skilled operators

High WIP

Repairs

Poor machine layout

Poor line balancing

Lack of proper method study techniques

Operatordemotivation

Personal reasons

Managements’ fear in reducing WIP

Poor line balancing

Lack of resources

Poor line balancing

Poor line balancing

Poor line balancing

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• Initial balancing▫ Sequence analysed and standard minute value (SMV) allocated ▫ Uses general sewing data (GSD) database

• Rebalancing▫ Performed once cell after cell has been operating for a few hours

• Reactive balancing▫ Occurs due to breakdowns, shortages, quality problems etc.▫ Causes problems in other parts of the cell.▫ Needs to be avoided

• Late hour balancing▫ Occurs at end of shift▫ Conducted to meet end of shift to hit targets▫ Causes many problems for next shift.

Balancing of Garment Lines

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•Company has 20 production lines• Initial implementation on 1 line•No capital investment required• Line divided into sub-cells•Changing of operators and management attitudes key•Gaining trust of process operators.•General use of Lean tools and Technique’s including

5S, Visual controls, Poke Yoke, and SPC

Implementation Process

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Current Layouts in Garment Manufacturing

•Line layouts are the most common▫Machines perpendicular to the line axis▫Machines along the line axis▫Operators at an angle▫Scattered Operator

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Machines perpendicular Machines along

the lineMachines at

an angleScattered machines

Current Layouts in Garment Manufacturing

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Designing Cells

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Setting the pitch

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Pilot to Full Implementation

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Quantified Financial Benefits

(Assuming 22 working days/ month)

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Results and Discussion

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Example reduction in WIP Fluctuation

0

20

40

60

80

100

120

140

0 10 20 30 40 50 60 70 80

Workstation No.

WIP

(pie

ces)

Line 2-before

Line 2-after

Line 3-after

Linear(Line 2-before)Linear(Line 2-after)Linear(Line 3-after)

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Results and Discussion

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Conclusion & Next Steps

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Case Study Sri Lanka Lean Wip Reduction

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