Tyre Industry_Case Study

Lean Enterprise MOST Way in Tyre Manufacturing Industry – A Case Study on ProcessPlanning and Work Force Productivity Improvement

2010

Mate

UMAS Pvt. Ltd.

5/15/2010

Lean Enterprise MOST Way in Tyre Manufacturing Industry A Case Study on Process Improvement, Facility Layout

Planning and Work Force Productivity Improvement

2010

UMAS Pvt. Ltd.

Lean Enterprise MOST Way in Tyre Manufacturing Industry Improvement, Facility Layout

UMAS Pvt. Ltd.

Lean Enterprise MOST Way in Tyre Manufacturing Industry – A Case Study on Process Improvement, Facility Layout Planning and Work Force Productivity 2010

CHAPTER 1 – EXECUTIVE SUMMARY

This paper discusses the concept of Work Measurement using MOST® and its application for the first time in Tyre Manufacturing Industry in India. Project findings are a revelation on the extent to which LABOR Resources are underutilized in Tyre Manufacturing and also emphasize the need for re-deployment of manpower for achieving higher engagement time per associate in Production Direct & In-Direct Areas. There is also significant scope for improvements in the facility layout, material handling system and shop floor processes. This study also includes detailed Capacity (Load Analysis) analysis of the plant to identify critical work centers as per the demand for various product categories. Significant portion of the current work content and cycle time is spent in performing non-value adding activities, which can be further reduced to eliminate waste from the system.

Potential for labor productivity improvement is as high as 55% in Production Direct and In-Direct areas.

Effective utilization of workforce is a primary objective for any manufacturing organization and Tyre manufacturing industry is no exception to this.

Following chapters provide details on the concept of Work Measurement using MOST®, MOST® in India and also details on the case study in Tyre manufacturing.

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CHAPTER 2 – WORK MEASUREMENT AND INTRODUCTION TO MOST®

Work Measurement (1)

The desire to know how long it should take to perform work must surely have been present in those individuals responsible for erecting ancient monuments or shaping tools. Why d id theancients and why do we need to be able to predict with accuracy the length of a working cycle? How was such a prediction made? How is it made now?

There are many reasons for wanting to know the amount of time a particular task should take to be completed. It may simply be for reasons of curiosity. But realistically, it is for any of three reasons: (1) to accomplish planning, (2) determine performance and (3) establish costs. Suppose an organization wishes to manufacture a new product. Using an economical predetermined motion time system, the planning and budgeting process could be accomplished with confidence. Knowing the time to manufacture and assemble various parts and/or components, a manager could:

Determine the total labor cost for a product or service.Determine the number of workers or staff needed.Determine the type and capacity of equipment needed.Determine the amount of and delivery times for materials.Determine the overall production or service schedule.Determine the feasibility of new products and services.Set and follow-up on production or service goals.Measure individual or departmental performance.Obtain predicted costs of production or service.Implement a performance-based pay system.

Knowing how much time it takes to perform certain tasks enables a manager to achieve and maintain a high utilization of personnel, material and equipment. This results in an overall efficiency that will make sustainable organizational growth possible.

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MOST® (Maynard Operation Sequence Technique) (1)

Maynard Operation Sequence Technique is a revolutionary PMTS (Pre Determined Motion Time System) developed by Kjell Zandin and H.B.Maynard and Company, Inc (Now Accenture Inc.) in 1974. This technique is based on MTM (Methods Time Measurement). Movement of objects follows consistently repeating patterns and these repeated patterns in the sequence of MTM have been consolidated while designing MOST®.

Features of MOST®

Reduced analysis time with little impact on accuracyIs accurateGenerates consistent resultsEncourages method improvementCan be used in a wide variety of industriesIs easy to learn and useCan obtain timings in advanceGlobally Accepted and Recognized by Unions

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CHAPTER 3 – MOST® in India

Introduction of MOST® in India

Concept of MOST® was successfully deployed in India for the first time in 1994 by Mr. Ashok Badve (Currently -Managing Director, UMAS Pvt. Ltd.). Mr. Badve was working with Mahindra and Mahindra as GM – Industrial Engineering, where he got trained as an Instructor in MOST® from Maynard and Co., Pittsburgh. He conducted deep research into this concept and made sure that it was applicable in Indian factory conditions. Once he was convinced that it will work and generate substantial improvements in productivity, he implemented it across Mahindra and Mahindra plants. Implementation of MOST® resulted in quantum jump in labor productivity (at times greater than 100%). Labor Unions also showed ACCEPTANCE to this technique as it is VERY TRANSPARENT and easy to understand. The standards are EASILY ACHIEVABLE and hence EASILY DEMONSTRATABLE and ACCEPTABLE by associates.

Mr. Badve started consulting companies outside Mahindra and Mahindra and thus began the journey of MOST® proliferation in India. Most of India’s leading organizations like Crompton Greaves Ltd., Ashok Leyland Ltd., Kirloskar Brothers Ltd., Kirloskar Oil Engines Ltd., Anand Automotive Systems, BILT, etc. made early INROADS with application of MOST® and saw significant improvements in plant productivity.

Mr. Badve is currently the Managing Director of UMAS Pvt. Ltd. (Unique MOST® Application and Solutions Pvt. Ltd.) and has consulted more than 185 Manufacturing and Service sector organizations till date. He evolved the concept of LeMW (Lean Enterprise MOST Way) over the last few years and has delivered significant value to his clients.

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CHAPTER 4 – Lean Enterprise MOST Way

LeMW (Lean enterprise Most Way)

LeMW is a continuous improvement strategy used by organizations to achieve world-class performance. The best way to define the Lean methodology is to describe the characteristics of an organization on the world-class journey. These organizations will strive to:

Improve quality, safety and productivity Eliminate waste and focus on value-added activities Reduce delays, lead times, inventories and costs Create an empowered workforce and Capitalize on effective teamwork Continuous improvement culture, reduce Work Content and Increase Effective Working Time

What is expected from LeMW?

Record and Measure ActivitiesFilter NVA (Non Value Added) and get Lean Work Content Reduce your delivery times and costsCommunication : Actual Effective Working Time and Losses are communicatedIncrease participation from all employeesTarget for only Value-Added activities that customers are willing to pay for

Where can be LeMW useful?

1. From Order to Dispatch2. Managerial, Office, Clerical and Shop Floor3. Any Manufacturing facility4. Process/Chemical/Pharmaceutical Industries5. Service Industries, Hospital, Banks, Retail, Ware Houses and Supply Chain

Lean Manufacturing is an operational strategy oriented toward achieving the shortest possible cycle time by eliminating waste. It is derived from the Toyota Production System and its key thrust is to increase the value-added work by eliminating waste and reducing incidental work. The technique often decreases the time between a customer order and shipment, and it is

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designed to radically improve profitability, customer satisfaction, throughput time, and employee morale. The benefits generally are lower costs, higher quality, and shorter lead times. Using LEMW, UMAS consultants, use unique approach called as “MORAL Cycle”, which comprises of Mapping, Observation, Recording, Analyze and Lean.

Lean Enterprise MOST Way in Tyre Manufacturing Industry Process Improvement, Facility Layout Planning and Work Force Producti

CHAPTER 5 – LeMW in

Our client is a leading manufacturer and pioneer in manufacturing of factories located in India & other countriesmanufacturing plant’s in India.including heavy trucks, light commercial

Scope of the LeMW (Lean Enterprise MOST Way) Study

To measure the work content of theOperations Sequence Technique) in production directassociates (direct and in-direct areas)established, the lines were balanced to improve the engagement time of the worits current level and proposed manpower to be deployed was calculated. in the PRODUCTION departments for the following processes were considered in scope of work.

Scope: Process Mapping & Observation of

direct and indirect associates on the equipment installed in various processes Capacity(Load) analysis on all production activities from mixing to final inspection Layout Preparation as per industrial Engineering principles for the upcoming facilit

Raw Material

StoreMixing

3 Role Calendaring

Band Building

Lean Enterprise MOST Way in Tyre Manufacturing Industry – A Case Study on Process Improvement, Facility Layout Planning and Work Force Productivity

LeMW in Tyre Industry - Findings

Our client is a leading manufacturer and pioneer in manufacturing of Tyres. They ha& other countries. This study was conducted at one of their

They manufacture a wide range of tyres for various ight commercial vehicles and tractors.

Scope of the LeMW (Lean Enterprise MOST Way) Study –

To measure the work content of the current work force in the plant using MOST® (Maynard uence Technique) in production direct and indirect areas.

direct areas) were studied during this study. After work content was established, the lines were balanced to improve the engagement time of the wor

vel and proposed manpower to be deployed was calculated. Activities performed in the PRODUCTION departments for the following processes were considered in scope of work.

Process Mapping & Observation of Production Run time activities performed direct and indirect associates on the equipment installed in various processes

analysis on all production activities from mixing to final inspectionLayout Preparation as per industrial Engineering principles for the upcoming facilit

Extrusion 4 Roll Calendaring

Bias Cutting

Green Tyre Building

Poking, Dusting Curing

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A Case Study on vity 2010

Findings

. They have several as conducted at one of their

a wide range of tyres for various vehicles

work force in the plant using MOST® (Maynard s. More than 300

were studied during this study. After work content was established, the lines were balanced to improve the engagement time of the work force from

Activities performed in the PRODUCTION departments for the following processes were considered in scope of work.

Production Run time activities performed by the direct and indirect associates on the equipment installed in various processes.

analysis on all production activities from mixing to final inspectionLayout Preparation as per industrial Engineering principles for the upcoming facility.

Bead Winding

Final Inspection & Dispatch

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Approach: Identified families of master product routings which covered almost all the varities

produced in the plant. Process Mapping of all the activities for each of the product routings Work Measurement using Maynard Operation Sequence Technique for all the activities Identification of Non-Value adding activities and suggestions on eliminating them Reduction in Non-Value adding activities on the bottleneck and critical processes, to

enhance capacity of the plant Creation of Master Routings along with Cycle Time and Content of Work for each

process in the routing Capacity (LOAD) analysis of the plant – Identification of critical work centers as per the

demand on different product routings Multi-Machine balancing and Manpower Calculation – Considering all the positional

constraints and forced constraints, balance all the process operations for the given demand

Deployment of balanced manpower as per the BALANCING PLAN

Sample Load Analysis:

Work Center Description

Sum of TOTAL CT

Sum ofTOTAL CW

OEE EWT# OF WORK

CENTERSNO OF SHIFTS

RESOURCECRITICALITY

GREEN TYRE ASSEMBL 864995.12 875521.82 100% 27000 20 3 0.5

BANBURRY – Type A 163521.56 394497.84 100% 28800 2 3 0.9

BANBURRY – Type B 181522.30 377795.67 100% 28800 2.1 3 1.0

Band Building (19) 95304.10 95647.68 100% 27000 4 3 0.3

BIAS CUTTING 459703.98 1174834.14 100% 27000 7 3 0.8

3 ROLL CALENDER 60241.57 19913.69 100% 27000 1 3 0.7

Bead Covering 23615.58 23615.58 100% 27000 1 2 0.4

CURING – Type A 1061780.68 48524.44 100% 28800 12 3 1.0

EXTRUSION M/C1 73428.15 158128.79 100% 28800 1 3 0.8

EXTRUSION M/C2 28010.30 41029.80 100% 28800 1 3 0.3

DUSTING 92045.31 143281.37 100% 27000 4 3 0.3

CURING – Type B 1563798.04 56512.08 100% 28800 39 3 0.5

Bead Filler M/C 372745.64 372745.64 100% 27000 7 3 0.7

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Project Findings Potential for labor productivity improvement – 55% Significant potential for reduction in batch size and manufacturing through put time Many process changes which can be done at very low cost to reduce FATIGUE and

WORK CONTENT in non-value adding activities Excessive back tracking of material on the layout No synchronized flow of material

Production Direct Manpower:

Production Direct and Indirect Manpower Per Shift Basis

Sr. No. Area Current Manpower

Basic Manpower as per CW

Basic Manpower as per Lean

CW

ProposedManpower

1 Mixing 47 13.54 8.06 332 Extrusion 35 3.83 1.62 183 4 Roll Calendaring 14 3.2 1.95 114 Bias Cutting 40 21.47 14.71 285 3 Roll Calendaring 12 2.5 .61 96 Band Building 52 22.78 17.31 327 Bead 34 14.62 11.49 23

8GREEN TYRE ASSEMBLY 120 57.15 32.02 68

9 Curing 31 5.13 3.2 2310 Final Inspection 37 21.98 10.95 26

Total 422 166.20 101.92 271

Scope for Labor Productivity Improvement –55%

CW – Content of Work

LCW – Lean Content of Work

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CHAPTER 6 – References

(1) - MOST® Work Measurement Systems, 3rd Edition, 2008 – Kjell B. Zandin

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CHAPTER 7 – Contact Details

Ashok BadveManaging DirectorEmail: [email protected] Number: +91-9822595307

Amol MateDirector – Business DevelopmentEmail: [email protected] Number: + 91-9766338082

Tyre Industry_Case Study

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