Fina Report

8/6/2019 Fina Report

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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.

M.E. Department SRMGPC, lucknow 1


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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

housekeeping 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) .

M.E. Department SRMGPC, lucknow 14KAIZEN EVENT

MTHODOLGY


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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


KAIZEN EVENT

MTHODOLGY

Document

Reality

Go to

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Observe

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Identif

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Waste

Root

Causes

Use the

tools

Apply

the

tools

Waste

Elimination

Solution

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Make this

the new

standard

Standard

work

Lock in the

new

standard

Visual

controls

Continuous Improvement: Do it again!


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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


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.


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 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.




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TO DO STATISTICS

Table 4


TOTAL

OPENED

TOTAL

CLOSED

PENDING

TO DO LIST

(EVENT)

3 3 -

TO- DO LIST

( CHANGED)

6 6 -


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KEY ACHIEVEMENT





5S.


5 S

1. Approx. five trolley and one mini truck of MUDA

removed.


3. Section of Quarantined Items has been defined.



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MECHANICAL WOKSHOP

SRMGPC, Lucknow


Event Description: Straightening out the raw material for

various jobs being done in workshop and their arrangement.



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






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Team Members:



3. Prof. Agnihotri

4. Mr. Dinesh

5. Animesh Pratap Singh


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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Table 5

TO DO STATISTICS

TOTAL

OPENED

TOTAL

CLOSED

PENDING

TO DO LIST

(EVENT)

2 2 -

TO- DO LIST

( CHANGED)

5 5 -

Table 6


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





5S.

4. Accumulation of quarantined items to use them when in

shortage of raw material.

5 S

1. Approx. one trolley of MUDA removed.


3. Straightening and sorting has been achieved to a satisfactory

level.



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MECHANICAL WOKSHOP

SRMGPC, Lucknow


Event Description: Standardization of various jobs being

done in workshop and their arrangement.



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



Team Leader: Animesh Pratap Singh



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Team Members:



3. Prof. Agnihotri

4. Mr. Dinesh

5. Aman Sharan


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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Table 7

TO DO STATISTICS

TOTAL

OPENED

TOTAL

CLOSED

PENDING

TO DO LIST

(EVENT)

2 2 -

TO- DO LIST

(CHANGED)

15 15 -

Table 8


SlNo.


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


1. Standardization of online records.

2. Standardization in placement of right things at their right

locations.


5 S


2. Standardization of activities has achieved to a satisfactory

level.



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MECHANICAL WOKSHOP

SRMGPC, Lucknow


Event Description: Sustaining various changes done in the

newly configured workshop.


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.





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Team Members:



3. Prof. Agnihotri

4. Mr. Dinesh

5. Animesh Pratap Singh


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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Table 9

TO DO STATISTICS

TOTAL

OPENED

TOTAL

CLOSED

PENDING

TO DO LIST

(EVENT)

1 1 -

Table 10


SlNo.


1. 5 S Level 0.72 1.00 0.80 11.11 %


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KEY ACHIEVEMENT


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


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

Hindustan Aeronautics Limiteds Kaizen Sheets.



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