Lean Strategy Implementation Methodology.
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Transcript of Lean Strategy Implementation Methodology.
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LEAN STRATEGY IMPLEMENTATION
Guide :Dr.G.Venugopal
Yadhu G
Roll No :17
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LEAN STRATEGY “Lean strategy” in manufacturing
involves a series of activities to minimize waste and Non value added (NVA) operations from production, customer relations, product design, supplier networks and factory management and improve the value added (VA) process.
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LEAN STRATEGY APPROACH IN TOYOTA PRODUCTION SYSTEM
Lean approach was first introduced by Toyota Production Systems, wherein the wastes highlighted are
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IMPLEMENTATION ISSUES Applying lean strategies incorrectly,
increases the inefficiencies of an organization's resources and reduced employee confidence in lean strategies.
(Marvel and Standridge 2009). Therefore, applying the appropriate lean
strategy for the specified industry is of paramount importance.
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REASONS FOR FAILURE OF LEAN STRATEGY
Behrouzi and Wong (2011) reported that the principal reasons behind the failure of the lean practices are
1. the lack of an effective implementation methodology.
2. inadequate understanding of lean performance measurements needed to evaluate the improvement in effectiveness and efficiency .
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CORE PRINCIPLES OF LEAN STRATEGY The three core principles of lean
strategy are identified as: 1 Identification of value 2 Elimination of waste 3 The generation of smooth flow (Womack et al., 1990)
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MODIFIED CORE PRINCIPLES OF LEAN STRATEGY 1. Identifying customer defined value 2. Optimizing the value stream 3. Converting the value flow smoothly by
controlling and eliminating wastes 4. Activating the demand pull by
synchronizing customer demand and information flow
5. Perfection of all products processes and services
( Womack and Jones, 2003)
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PROPOSED METHODOLOGY
new.docx
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CASE STUDY
The proposed approach was implemented in EXCEL Limited, Australia.
The company specializes in low and medium voltage switchgear products.
This research mainly focused on electrical control and communication cubicle assembly RC-01 ES.
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Define and assess the system
A lean implementation team is formed
Define the manufacturing performance indicators
Sketch the existing process status and map
Measure the current state of the process using CPM method
Implementation of lean tools based on the identified waste
Evaluation of effectiveness and efficiency of the
proposed approach
Continuous improvement techniques and culture
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STEP 1 –ASSESS THE SYSTEM Based on the perspective of customer
driven value, authors assessed the current status of lean strategy in the assembly unit.
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STEP 2-LEAN IMPLEMENTATION PROJECT TEAM
Project Manager
Mechanical Engineer
Master Student
Lean Manufacturin
gExpert
Skilled Operators
ProductionManager
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STEP 3 -PERFORMANCE INDICATORS The commonly used Performance
indicators are time ,cost ,quality and flexibility.
In this study the authors focused on the “Time” associated with the assembly process.
Continuous Performance Measurement(CPM) method is used in this research to assess the current state of performance.
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STEP 4-PROCESS MAP Sketch the existing process status and
map using VSM, visual control and time study method.
This map represents all the existing wastes, NVA activities in a process that transforms raw materials into a finished good.
Major steps in the production process are: 1 receipt of raw material 2 assembly of the cubicles at different stages 3 testing 4 inspection 5 packaging
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ASSEMBLY OPERATIONS
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EXISTING RC CUBICLE ASSEMBLY PROCESS MAP
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IDENTIFIED WASTE
The the existing process layout for RC cubicle assembly process was responsible for major part of time wastes and therefore redesigned the layout. The work station had been separated with specific task allocations for each operator which ultimately balanced the workloads.
Handling problems were identified as the second most crucial waste in the process
Third was the shortage of working parts and tools in work stations, overcomed by providing different trolleys in each work station with necessary tools and parts.
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PROPOSED CUBICLE ASSEMBLY PROCESS MAP
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STEP 5-PERFORMANCE MEASUREMENTS A major part of the proposed
methodology is to continuously assess performance before and after lean implementation.
In this process, the first step is to measure the current state of the process in terms of efficiency, effectiveness, VA/NVA time ratio using process map and CPM.
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RESULTSBefore Lean After Lean Improvement
Value Added Time (minutes) 27.15 27.15
Non-value added time
1.Adjusting parts 2.65 2.65 0
2.Walk to hold parts 6.03 1.93 -4.1
3.Walk to get tools 2.45 0.27 -2.18
4.Get parts 5.8 3.15 -2.65
5.Unpack and disassembly 5.15 5.15 0
6.Inspection/paper works 2.5 2.5 0
7.Handling parts and tools 7.46 5.91 -1.55
8.Cleaning 1.03 1.03 0
9.Rework 1.39 1.39 0
Total (Non Value added time) 34.46 24.34 -10
Total (VA+NVA) 61.61 51.49 -10
VA/NVA ratio .79 1.12 42%
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PERFORMANCE MEASUREMENT
The overall performance of the manufacturing process is measured by considering both effectiveness and efficiency of the production process.
Efficiency = (output value ) × 100% (input resource )
= no of output × average pitch time × 100%
no of workers × total allocated time
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EFFECTIVENESS Effectiveness compares actual output to
targeted output from a production line (Bayou and de Korvin, 2008).
Effectiveness = Actual number of output ×
100% Targeted output value
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RESULTS
Before Lean
After Lean Improvement
Daily Production Target 20 26
Achieved Production Target 12 19
Average pitch time 61 51 -10
EFFICIENCY (%) 61 72 +18
EFFECTIVENESS 60 73 +22
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STEP 6-CONTINUOUS IMPROVEMENT
Monthly meeting and discussions among the operators.
And they discussed about new innovations or new techniques to be implemented in their production floor to reduce NVA operations and effective use of available resources.
5S Kaizen
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LIMITATIONS Many companies may not have expert
lean team and lean corporate culture . Identification of key performance
indicators is also crucial for leanness evaluation. Sometimes, it is not possible to identify and measure all the performance indicators in a specific company.
Finally, implementation of this method may be costly and time consuming .
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CONCLUSION The overall achievement in reducing
NVA time , average processing time and improvement in process efficiency and effectiveness were found satisfactory for the company.
The proposed lean implementation methodology can be applied in manufacturing organizations (especially in assembly productions) to improve operational performance.
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REFERENCE Azharul Karim and Kazi Arif-Uz-Zaman, A
methodology for effective implementation of lean
strategies and its performance evaluation in
manufacturing organizations, J. Business Process
Management, Vol. 19 No. 1, (2013 ), PP 169-195.
Manimay Ghosh, Lean manufacturing performance in
Indian manufacturing plants, Journal of Manufacturing
Technology Management, Vol. 24 No. 1, (2013) , PP
113-122.
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THANK YOU
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IDENTIFIED WASTE
The lean team found that the existing process layout for RC cubicle assembly process was responsible for major part of time wastes and therefore redesigned the layout.
In the new layout, the working stations and the machines are located in optimum distance for operators which actually reduced walking distances among them.
Handling problems were identified as the second most crucial waste in the process. The work station had been separated with specific task allocations for each operator which ultimately balanced the workloads. Eventually the handling waste was minimized by the separation of the tasks.
In order to overcome the problem related to shortage of parts and tools in work stations, different trolleys in each work station was allocated with necessary tools and working parts
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Asses the status of Lean Strategy in the company
A lean implementation team is formed
The team further defines the manufacturing performance indicators based on production quantity, processing time and cost.
Sketch the existing process status and map using VSM, visual control and time study method to identify existing process wastes
Measure the current state of the process using CPM method
Different lean tools are implemented considering existing production scopes and wastes into the process.
Again the effectiveness and efficiency of the proposed process is evaluated in the next phase using CPM
The culture for continuous improvement techniques is developed within the process environment
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CONCLUSION
Before Lean
After Lean Change
Value Added Time (minutes) 27.15 27.15
Non-value added time
Adjust 2.65 2.65 0
Walk to parts 6.03 1.93 -4.1
Walk to get tools 2.45 0.27 -2.18
Get parts 5.8 3.15 -2.65
Unpack and disassembly 5.15 5.15 0
Inspection/paper works 2.5 2.5 0
Handling 7.46 5.91 -1.55
Cleaning 1.03 1.03 0
Rework 1.39 1.39 0
Total (Non Value added time) 34.46 24.34 +10
Total (VA+NVA) 61.61 51.49 +10
VA/NVA ratio .79 1.12
Daily Target 20 26
Achieved Target 12 19
Average pitch time 61 51 +10
Efficiency 61 72 +11
Effectiveness 60 73 +13
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LIMITATIONS The method suggests that at early stage of lean
implementation, a lean team needs to be formed with skilled personnel from different department of the company. The team members should have sufficient expertise in lean strategies and implementation methodology. Many companies may not have people with this expertise.
A team member without necessary knowledge and skills adversely affect the overall success of the project and can measure unrealistic performance of production system.
Identification of key performance indicators is also crucial for leanness evaluation. Sometimes, it is not possible to identify and measure all the measures of performance indicators in a specific company.
Finally, implementation of this method may be costly and time consuming but new methods and techniques need to be applied within company’s budget and resources.
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DESIGN NEW PROCESS: LEAN TOOLS, TECHNIQUES
Lean techniques provided better results depending on the firm size; practices such as setup time reduction, multifunction employees and Kanban system provide better organizational performance regardless of firm size.
Wan and Chen (2009) identified 12 groups of lean tools (Autonomation, concurrent engineering, line balancing, manufacturing cell, productivity, pull, quality, single minute exchange of die (SMED), standard work, visual control, VSM, and worker flexibility) to implement in two type of systems
(quantitative and repetitiveness of product).
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CONTINUATION VSM technique developed by Rother and
Shook (1999) becomes one of the most commonly used lean tools.
Melton (2005) also suggested five key lean tools especially for process industries namely,
( kanban, 5S, visual control, Poke Yoke and SMEDs.)
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CONTINUOS IMPROVEMENT set up monthly meeting and discussions
among the operators. In these meetings, they discussed about new innovations or new techniques to be implemented in their production floor.
The overall achievement in reducing NVA time and average processing time and increment in process efficiency and effectiveness were satisfactory
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CPM SHEET (BEFORE LEAN IMPLEMENTATION)
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To meet such expectations, the manufacturing industry is focusing on advanced manufacturing strategies in particular the
‘manufacturing-task strategy’ and ‘manufacturing-choice strategy’
(Miller and Roth 1994, Swink and Way 1995).
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MANUFACTURING-TASK STRATEGY The manufacturing-task strategy
represents the competitive capability the manufacturing firm must accomplish in order to compete successfully in its business or marketing environment
(Davies and Kochhar2002, Leung 2002)
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MANUFACTURING-CHOICE STRATEGY The manufacturing-choice strategy
represents the appropriate selections of technologies and management strategies to improve the manufacturing system.
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IDENTIFICATION OF MAJOR WASTES BY TIME STUDY
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RC CUBICLE The RC control and communications
cubicle is a microprocessor-based controller that provides a directional over current, earth fault and sensitive earth fault relay, auto reclosing relay, instantaneous metering, event log, demand logger and remote terminal unit (RTU) for remote control in a single package.
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