Description
Lean Manufacturing for Competitive Advantage
Lean Manufacturing for Competitive Advantage
C.Narasimhan Sundaram-Clayton Limited
CN_ISB_Aug06
1
Presentation overview
Lean : A competitive weapon What is lean? Experience from SCL Advantage India
CN_ISB_Aug06
2
Lean: A Competitive Weapon
CN_ISB_Aug06
3
Zara: Fastest turnaround time
Freshly baked clothes: Consumers will regard clothes as perishable commodity…
Short lead time Small batch quantities More variety
CN_ISB_Aug06
4
Business Model: Dell
Cost advantage:
Supply Chain Manufacturing Operations Direct Model Information Flow
4-5 % points
• Low inventory • Efficient cash conversion • Stronger vendor relationships • Pass savings to customer
2-3 % points
• Proprietary advantages • Efficient gains to scale operations • Cont’d cost reduction
2-3 % points
• Lean cost structure • Leveraged partner model • Asset efficiency
5-10 % points
• Direct across segments • No retail, distribution mark-up • Enables cross sell opportunities • Real time feedback on price/promotions • Act on market changes within hours • Maximize profits
Strong information flow Direct access to customers Lean operations, supply chain
CN_ISB_Aug06
5
Southwest: One Kind of Airplane
CN_ISB_Aug06
6
Walkman re-invented
Product obsession
Consumer obsession
20th Century Walkman 20 songs
CN_ISB_Aug06
21st Century iPod 20,000 songs
7
Observes: People sharing music Insight : Young people love unlimited access to music Barriers : Storage devices, Cost
•
October 23, 2001
i-
dea
Jan 9, 2001: launches i-tunes
CN_ISB_Aug06
8
i-dea grows
CN_ISB_Aug06
9
CN_ISB_Aug06
10
Mumbai’s Dabbawala’s
5,000 tiffinwals’s 175,000 lunches
1 error in 16 million transactions = 99.999999% times correct Only for Rs.150 / month
CN_ISB_Aug06
11
Aravind Eye Hospital
Dr.G.Venkataswamy
Alternate health care model supplementing Governmental efforts
Started 1976 with 11 beds, Currently 4 hospitals with 3590 beds 67% of outpatients visit & 75% of surgeries free of cost Free eye camps Free cataract surgeries World class ophthalmic products available at affordable costs Institute for research that contributes to the development of eye care Development and implementation of efficient and sustainable eye care programs
World’s most productive eye hospital!!
CN_ISB_Aug06
12
Telecom revolution in Rural India
STD/ISD/PCO stations
Phones in post offices in villages
Mobile phones
MeTel – Low cost e-mail for rural India
CN_ISB_Aug06
13
Banking
Banks
ATM’s in cities
Low cost technology for rural India by TeNet Group
14
CN_ISB_Aug06
Key Success Factors
Create Value for the customer - Innovate Reduce development time - Speed to Market Improve Asset Productivity – Man & Machines Reduce Inventory Reduce Cost Offer world-class Quality & Service Reach customers across the depth of the Country
LEAN – The only way to go!!
CN_ISB_Aug06
15
What is Lean?
CN_ISB_Aug06
16
Many Names, but the same Concept
Toyota Production System Just-In-Time Lean Manufacturing JIT/TQC/EI/TPM Short Cycle Manufacturing One-Piece-Flow Cellular Manufacturing Stockless Production Agility Group Technology Demand Flow Manufacturing Focused Flow Manufacturing Value Adding Manufacturing Time Based Management Pull system
Synchronous Flow Manufacturing End-Lining Operations Continuous Flow Manufacturing
CN_ISB_Aug06
17
LEAN defined…
Philosophy which seeks to provide more and more value to the customer (package of cost, quality & delivery) with less and less resources by eliminating waste (Muda)
Overriding Principle : by
Adding Value, Removing Waste
^
CN_ISB_Aug06
18
MUDA
Waste ( MUDA ) is anything that does not add value to the product from the customer’s perspective (e.g. excess inventory, over production, over investment, excess handling, etc.) Overproduction Inventory Transportation Extra Processing Defects / Rework Unnecessary Motion Unnecessary Waiting
CN_ISB_Aug06
19
Things to remember about waste
Waste is really a symptom rather than a root cause of the problem Waste points to problems within the system(at both process and Value-stream levels) Find and address cause of waste
The element of production that add no value to the product. Waste only adds cost and time.
CN_ISB_Aug06
20
Why Lean ?
Nothing / Nobody is perfect. Even NATURE!!!
CN_ISB_Aug06
21
Why Lean ?
Typically 95% of Total Lead Time is Non Value Adding !!
Total Lead Time NVA Time VA Time
Set-up Startup time time
Others Rework Machine time downtime
( batch production, inventory )
Waiting for material time
Focus is on reducing NVA Time to improve overall efficiency
CN_ISB_Aug06
22
Company-wide Lean ?
Asset utilization Manpower utilization Low cost automation Balance to TAKT time working Lean inventory
CN_ISB_Aug06
23
Benefits of Lean
Turn Sales Orders into Profits as Quickly as Possible
Decrease the time period from buying or fabricating components until you get paid by the customer for the finished product.
Increase Profits
Reduce Costs and Increase Sales.
Use Limited Resources Wisely
People, Equipment, Buildings, etc.
CN_ISB_Aug06
24
Some experiences from SCL
CN_ISB_Aug06
25
Why SCL went for Lean?
From 1998 onwards our customers demanded - Daily supplies with zero defect - Supplies in matched vehicle sets - Continuous price reduction To meet the above requirement, SCL needed to - Respond in short lead times - With less inventory and investment - Eliminate waste and reduce cost Since lean manufacturing addresses above requirements, SCL decided to implement Lean Manufacturing in the production system
CN_ISB_Aug06
26
Our objective
To reduce lead time from customer order to delivery of products To meet the customers changing requirement To reduce inventory by implementing pull system and Just-in-time supplies To achieve zero defect To improve productivity
CN_ISB_Aug06
27
Case 1: Dual Brake Valve
Table 6 Table 7
Cell 1
Table 1
Table 2 Table 3
Table 4
Table 5
Table 1 - Upper body sub-assembly and primary piston assembly Table 2 - Lower body sub-assembly and upper body & primary piston assembly Table 3 - Upper and lower body assembly and exhaust flap assembly Table 4 - Testing Table 5 - Final assembly Table 6, 7 - Intermediate testing
2 cells for the same product, Productivity – 3.3 units / operator / hour
CN_ISB_Aug06
Cell 2
28
Case 1: Dual Brake Valve
Improvement - Phase I
Major actions:
Man-machine balancing Improvement in pace and rhythm of working
CN_ISB_Aug06
29
Case 1: Dual Brake Valve
Improvement Phase-II
Introduced circuit work method Major improvement
1. Circuit work method introduced – to eliminate imbalance 2. Low cost automation 3. Multi process operation introduced 4. On the job training (OJT) to workmen
CN_ISB_Aug06
Productivity improved by 500%
30
Case 1: Dual Brake Valve
Process ratio Before – 2.6% Now – 35%
CN_ISB_Aug06
31
Case 1: Results
Effect of improvement
No 1 2 3 4 5 6 7 Description Number of cells Number of operators/ shift Output/ hours (Nos) Output/ hour/ opr./ cell Employee productivity Space Space productivity UOM Before After Nos Nos Nos Nos % Sq. Mts % 2 12 40 3.3 25 1 3 60 20 501% 18 39%
CN_ISB_Aug06
32
Case 2: Lean machine
3500MM
HIGH FRONTAGE MORE WALKING DISTANCE DIFFICULT MAINTENANCE MORE COMPLEX
BEFORE LEAN CONCEPT
3. Low Machine Frontage , Less Walking Distance
L0W FRONTAGE LESS OPERATOR WALKING DISTANCE EASY MAINTENANCE LESS COMPLEXITY
60 0M M.
CN_ISB_Aug06
33
Case 2: Results
Sl. No Description UOM
Before
After Improvement
1 2 3
Frontage Mtr Floor space Sq. M Cost Rs. Lacs
3.5 10.5 30
2.4 5.3 20
31% 50% 33%
CN_ISB_Aug06
34
Case 3: Process Plant
Year - 2000 Year - 2003
9m
BENEFITS
Sl No 1 2 3 4 5 CN_ISB_Aug06 Description Frontage Floor area Cost Electrical load Plant running cost(Excluding consumables) UOM m m2 Lacs kw Rs/hour Before 9 54 21 45 225
6m
After 6 30 17 30 150
Improvement 33% 45% 20% 33% 33%
35
Case 4: Zero Changeover
Horizontal Single model 1996 Vertical Single model 2000 Vertical Multi model 2003
2.5
No of spindle - 36 Hydraulic control
1
No of spindle - 36 Hydraulic control CNC Control
1
No of spindle - 2
BENEFITS
Sl No Description 1 2 3 4 5 Modle Frontage Floor space Cost m m2 m Single 2.5 5 19 54
UOM Horizontal Vertical Vertical Improvement
Single 1 3.3 18 54 Multi 1 3.3 14 3
60% 34% 26% 94%
36
Tool change time min
CN_ISB_Aug06
Case 5: Low cost automation
BEFORE AFTER
Manual deburring
40
Auto deburring setup
SMS Reduction (Manual Vs Auto)
30 15
Time in Sec
30 20 10 0
CN_ISB_Aug06
M anual
Auto
37
Results
Sales Vs Manpower
Sales
400
364 412
1000
875
Sales (Rs in crores)
808
Number of Employees
751 663 229
290
302 644 621 618
750
235
199 200
625
180 00-01
CN_ISB_Aug06
500 01-02 02-03 03-04 04-05 '05-06
38
Year
Number of employees
345
Results
Sales to Gross fixed assets
4.5
UOM : times
4.1
4.0
3.6
No of times
3.5
3.4
3.0
2.7
2.5
2.2
2.4
2.0 00-01
CN_ISB_Aug06
01-02
02-03
Year
03-04
04-05
'05-06
39
Results
Inventory turn
36
UOM : times
35
31
No of times
30
28
24
24
21
18 01-02
CN_ISB_Aug06
02-03
03-04
04-05
'05-06
40
Year
Results
VAPCO
7.0
UOM : times
6.0
6
No of times
5.0
4.4
4.0
3.7 3.2 3.2
3.0 01-02
CN_ISB_Aug06
02-03
03-04
Year
04-05
'05-06
41
Results
Suggestions / employee
40
38 38 38 39
UOM : Nos/employee
40
35
Nos
30 25 01-02
CN_ISB_Aug06
02-03
03-04
04-05
'05-06
42
Year
Results
Sales Vs Floor space
400
Sales
15908
412
17000
15450 302 14710
Sales (Rs in crores)
Floor space
290
14500
235
200
229 12680 12680
13250
180 01-02 02-03 03-04 04-05 '05-06
12000
Year
CN_ISB_Aug06
Floor Space (Sq. mt)
43
345
364
15750
Where this has got us @ SCL
Lowest cost producer of Air Compressors (for HCVs) in the world 100% on-time-delivery to customers for the LAST 3 years 100% improvement in employee productivity 75% improvement in inventory turns 40% improvement in space productivity
CN_ISB_Aug06
44
Praise from the Expert
This summer in India I visited a remarkable air brakes plant belonging to the TVS Group that is one of the leanest operations I have ever seen outside of Toyota
- Mr Jim Womack President and Founder Lean Enterprise Institute
April 2002
CN_ISB_Aug06
45
To summarise
Lean Manufacturing is a broad system strategy, but successful implementation is in the details. Lean Manufacturing is an Organization-wide Change process. Successful Implementation requires commitment & involvement across all levels. Lean solutions are usually no cost / low cost. “World Class” companies are implementing the Principles of Lean Manufacturing.
CN_ISB_Aug06
46
Advantage India
CN_ISB_Aug06
47
Has the potential to become one of the top 5 economies by 2025 …..
USD billions
21,000 18,000 15,000 12,000 9,000
Real GDP *
US
6,000 5,000 4,000 3,000 2,000
India would be the Third largest Economy (after China & US) by 2050 “Goldman Sachs Report”
Japan China
Germany Italy France S Korea
India @ 8% UK India @ 6% Mexico Canad a
1,000 0 2003
CN_ISB_Aug06
2005
2007
2009
2011
2013
2015
2017
2019
2021
2023
2025
Source: ACMA
48
Opportunity for India
Largest diamond cutting and polishing centre Largest producer of milk, tea and pulses Largest livestock population for food processing 2nd largest two wheeler manufacturers 2nd largest jewelry market 2nd largest in cotton textile trade 3rd largest leather producer after China and Italy Weak in Manufacturing
CN_ISB_Aug06
49
Miles to go….
India needs a Manufacturing Revolution Currently (largely) limited to Auto industry But this represents only 10% of Indian mfg.
Revolution needs to now spread to others- textiles, machinery, durables, electronics, electricals……
CN_ISB_Aug06
50
Roadmap for World Class Organisation
World Class Organisation Lean Manufacturing Total Productive Maintenance New Product Development Standardisation Daily & Policy Management Restructured Manufacturing System Quality System 5S Work Practice Total Employee Involvement
CN_ISB_Aug06
CULTURE
VALUE ADDING ZERO DEFECT PERPETUTITY VISUAL FACTORY PDCA OWNERSHIP ADHERENCE DISCIPLINE TEAM WORK
51
12 Steps to Lean Implementation
STEPS Step 1 : Value stream mapping MEASURES Process ratio in percentage
Mapping the process flow for a product / product family
Step 2 : Balance to takt time
Match the pace of production to the pace of sales
Ratio between cell bottleneck time and takt time
Step 3 : Single piece flow Layout changes Layout changes Step 4 : Spider man system Step 5 : Process stability Quantity
Loss elimination through TPM
1 WIP at each stage Pitch 2 hours Variation +/- 5% Variation +/- 5% Percentage of missed cards per shift 1 Takt Rejection Step 3 status Every part every shipping window QP process (QP1, QP2 and QP3) 52
Step 6 : ProcessLoss elimination through TPM stability Quality Step 7 : Pull system
Paced withdrawal
Step 8 : SMED Step 9 : Poka yoke Step 10 : Operator ownership Step 11 : Production levelling Step 12 : SOP
CN_ISB_Aug06
Value Stream Mapping
Month/weekly/daily plan Production Control Supplier
Supplier SCL-Foundry
Marketing
Monthly/Weekly Daily Fax Monthly schedule
Customer
Introduce supermarket Flap assembly automation
ily Da Or
Takt time 51 Sec.
Demand/month 30000 1020 nos /day
OX OX
Milk run
4X Daily
r de
Reduce spider man Pitch to 30 minutes.
Combine operation of flap assembly and body greasing UB m/c 1 C/T=85s FIFO CO=900 Uptime=85.4% I 2 shifts 24 LB m/c C/T=300s CO=0 Uptime=100% 2 shifts 1 C/T=87s CO=900 Uptime=85% 2 shifts Introduce Rabbit chase in Assembly 1& 2 for single piece flow Leak check FIFO Plating & deburr 2(shared) I 1 48 C/T=45s CO=0 Uptime=100% 2 shifts Rejection 4% Ultrasonic Cleaning I 125 1 C/T=14s CO=0 Uptime=100% 2 shifts Introduce Conveyor for Assembly 2
1X daily
Inspection stores
FIFO
Assembly 1 5
Assembly 2 12 I 24
I 24
Shipping Packing 1(shared)
C/T=300s CO=0 Uptime=100% 2 shifts
I 16
C/T=60s C/T=51.42s C/T=240s CO=0 CO=0 CO=0 Uptime=100% Uptime=95% Uptime=95% 2 shifts 2 shifts 2 shifts Rejection 0.2% Reduce work content to balance takt time Value added Time Production lead time = 10236s 29575s = 34.6%
Date - 26.12. 2005
.034 day 300s CN_ISB_Aug06 .017 day 902s
Introduce crow foot arrangement for mounting bolt tightening
Process Ratio
Automation of four bolt tightening 0.028 day 0.015 days 130s
Introduce low cost automation in assembly 1 and 2 0.09 days 100s 300 s 240s 53
0.132 day 164s 8100s
Miles to go….
For too long, we have seen our national advantage through the lens of wage cost only….
Time to exploit others
• Technology & Processes • Human competence • Innovativeness
Time to build on our strengths !!
CN_ISB_Aug06
54
“It isn’t enough to be going fast in the right direction. If you’re not going fast enough, you can still get run over.”
CN_ISB_Aug06
55
Thank you
CN_ISB_Aug06
56
doc_989529296.pdf
Lean Manufacturing for Competitive Advantage
Lean Manufacturing for Competitive Advantage
C.Narasimhan Sundaram-Clayton Limited
CN_ISB_Aug06
1
Presentation overview
Lean : A competitive weapon What is lean? Experience from SCL Advantage India
CN_ISB_Aug06
2
Lean: A Competitive Weapon
CN_ISB_Aug06
3
Zara: Fastest turnaround time
Freshly baked clothes: Consumers will regard clothes as perishable commodity…
Short lead time Small batch quantities More variety
CN_ISB_Aug06
4
Business Model: Dell
Cost advantage:
Supply Chain Manufacturing Operations Direct Model Information Flow
4-5 % points
• Low inventory • Efficient cash conversion • Stronger vendor relationships • Pass savings to customer
2-3 % points
• Proprietary advantages • Efficient gains to scale operations • Cont’d cost reduction
2-3 % points
• Lean cost structure • Leveraged partner model • Asset efficiency
5-10 % points
• Direct across segments • No retail, distribution mark-up • Enables cross sell opportunities • Real time feedback on price/promotions • Act on market changes within hours • Maximize profits
Strong information flow Direct access to customers Lean operations, supply chain
CN_ISB_Aug06
5
Southwest: One Kind of Airplane
CN_ISB_Aug06
6
Walkman re-invented
Product obsession
Consumer obsession
20th Century Walkman 20 songs
CN_ISB_Aug06
21st Century iPod 20,000 songs
7
Observes: People sharing music Insight : Young people love unlimited access to music Barriers : Storage devices, Cost
•
October 23, 2001
i-
dea
Jan 9, 2001: launches i-tunes
CN_ISB_Aug06
8
i-dea grows
CN_ISB_Aug06
9
CN_ISB_Aug06
10
Mumbai’s Dabbawala’s
5,000 tiffinwals’s 175,000 lunches
1 error in 16 million transactions = 99.999999% times correct Only for Rs.150 / month
CN_ISB_Aug06
11
Aravind Eye Hospital
Dr.G.Venkataswamy
Alternate health care model supplementing Governmental efforts
Started 1976 with 11 beds, Currently 4 hospitals with 3590 beds 67% of outpatients visit & 75% of surgeries free of cost Free eye camps Free cataract surgeries World class ophthalmic products available at affordable costs Institute for research that contributes to the development of eye care Development and implementation of efficient and sustainable eye care programs
World’s most productive eye hospital!!
CN_ISB_Aug06
12
Telecom revolution in Rural India
STD/ISD/PCO stations
Phones in post offices in villages
Mobile phones
MeTel – Low cost e-mail for rural India
CN_ISB_Aug06
13
Banking
Banks
ATM’s in cities
Low cost technology for rural India by TeNet Group
14
CN_ISB_Aug06
Key Success Factors
Create Value for the customer - Innovate Reduce development time - Speed to Market Improve Asset Productivity – Man & Machines Reduce Inventory Reduce Cost Offer world-class Quality & Service Reach customers across the depth of the Country
LEAN – The only way to go!!
CN_ISB_Aug06
15
What is Lean?
CN_ISB_Aug06
16
Many Names, but the same Concept
Toyota Production System Just-In-Time Lean Manufacturing JIT/TQC/EI/TPM Short Cycle Manufacturing One-Piece-Flow Cellular Manufacturing Stockless Production Agility Group Technology Demand Flow Manufacturing Focused Flow Manufacturing Value Adding Manufacturing Time Based Management Pull system
Synchronous Flow Manufacturing End-Lining Operations Continuous Flow Manufacturing
CN_ISB_Aug06
17
LEAN defined…
Philosophy which seeks to provide more and more value to the customer (package of cost, quality & delivery) with less and less resources by eliminating waste (Muda)
Overriding Principle : by
Adding Value, Removing Waste
^
CN_ISB_Aug06
18
MUDA
Waste ( MUDA ) is anything that does not add value to the product from the customer’s perspective (e.g. excess inventory, over production, over investment, excess handling, etc.) Overproduction Inventory Transportation Extra Processing Defects / Rework Unnecessary Motion Unnecessary Waiting
CN_ISB_Aug06
19
Things to remember about waste
Waste is really a symptom rather than a root cause of the problem Waste points to problems within the system(at both process and Value-stream levels) Find and address cause of waste
The element of production that add no value to the product. Waste only adds cost and time.
CN_ISB_Aug06
20
Why Lean ?
Nothing / Nobody is perfect. Even NATURE!!!
CN_ISB_Aug06
21
Why Lean ?
Typically 95% of Total Lead Time is Non Value Adding !!
Total Lead Time NVA Time VA Time
Set-up Startup time time
Others Rework Machine time downtime
( batch production, inventory )
Waiting for material time
Focus is on reducing NVA Time to improve overall efficiency
CN_ISB_Aug06
22
Company-wide Lean ?
Asset utilization Manpower utilization Low cost automation Balance to TAKT time working Lean inventory
CN_ISB_Aug06
23
Benefits of Lean
Turn Sales Orders into Profits as Quickly as Possible
Decrease the time period from buying or fabricating components until you get paid by the customer for the finished product.
Increase Profits
Reduce Costs and Increase Sales.
Use Limited Resources Wisely
People, Equipment, Buildings, etc.
CN_ISB_Aug06
24
Some experiences from SCL
CN_ISB_Aug06
25
Why SCL went for Lean?
From 1998 onwards our customers demanded - Daily supplies with zero defect - Supplies in matched vehicle sets - Continuous price reduction To meet the above requirement, SCL needed to - Respond in short lead times - With less inventory and investment - Eliminate waste and reduce cost Since lean manufacturing addresses above requirements, SCL decided to implement Lean Manufacturing in the production system
CN_ISB_Aug06
26
Our objective
To reduce lead time from customer order to delivery of products To meet the customers changing requirement To reduce inventory by implementing pull system and Just-in-time supplies To achieve zero defect To improve productivity
CN_ISB_Aug06
27
Case 1: Dual Brake Valve
Table 6 Table 7
Cell 1
Table 1
Table 2 Table 3
Table 4
Table 5
Table 1 - Upper body sub-assembly and primary piston assembly Table 2 - Lower body sub-assembly and upper body & primary piston assembly Table 3 - Upper and lower body assembly and exhaust flap assembly Table 4 - Testing Table 5 - Final assembly Table 6, 7 - Intermediate testing
2 cells for the same product, Productivity – 3.3 units / operator / hour
CN_ISB_Aug06
Cell 2
28
Case 1: Dual Brake Valve
Improvement - Phase I
Major actions:
Man-machine balancing Improvement in pace and rhythm of working
CN_ISB_Aug06
29
Case 1: Dual Brake Valve
Improvement Phase-II
Introduced circuit work method Major improvement
1. Circuit work method introduced – to eliminate imbalance 2. Low cost automation 3. Multi process operation introduced 4. On the job training (OJT) to workmen
CN_ISB_Aug06
Productivity improved by 500%
30
Case 1: Dual Brake Valve
Process ratio Before – 2.6% Now – 35%
CN_ISB_Aug06
31
Case 1: Results
Effect of improvement
No 1 2 3 4 5 6 7 Description Number of cells Number of operators/ shift Output/ hours (Nos) Output/ hour/ opr./ cell Employee productivity Space Space productivity UOM Before After Nos Nos Nos Nos % Sq. Mts % 2 12 40 3.3 25 1 3 60 20 501% 18 39%
CN_ISB_Aug06
32
Case 2: Lean machine
3500MM
HIGH FRONTAGE MORE WALKING DISTANCE DIFFICULT MAINTENANCE MORE COMPLEX
BEFORE LEAN CONCEPT
3. Low Machine Frontage , Less Walking Distance
L0W FRONTAGE LESS OPERATOR WALKING DISTANCE EASY MAINTENANCE LESS COMPLEXITY
60 0M M.
CN_ISB_Aug06
33
Case 2: Results
Sl. No Description UOM
Before
After Improvement
1 2 3
Frontage Mtr Floor space Sq. M Cost Rs. Lacs
3.5 10.5 30
2.4 5.3 20
31% 50% 33%
CN_ISB_Aug06
34
Case 3: Process Plant
Year - 2000 Year - 2003
9m
BENEFITS
Sl No 1 2 3 4 5 CN_ISB_Aug06 Description Frontage Floor area Cost Electrical load Plant running cost(Excluding consumables) UOM m m2 Lacs kw Rs/hour Before 9 54 21 45 225
6m
After 6 30 17 30 150
Improvement 33% 45% 20% 33% 33%
35
Case 4: Zero Changeover
Horizontal Single model 1996 Vertical Single model 2000 Vertical Multi model 2003
2.5
No of spindle - 36 Hydraulic control
1
No of spindle - 36 Hydraulic control CNC Control
1
No of spindle - 2
BENEFITS
Sl No Description 1 2 3 4 5 Modle Frontage Floor space Cost m m2 m Single 2.5 5 19 54
UOM Horizontal Vertical Vertical Improvement
Single 1 3.3 18 54 Multi 1 3.3 14 3
60% 34% 26% 94%
36
Tool change time min
CN_ISB_Aug06
Case 5: Low cost automation
BEFORE AFTER
Manual deburring
40
Auto deburring setup
SMS Reduction (Manual Vs Auto)
30 15
Time in Sec
30 20 10 0
CN_ISB_Aug06
M anual
Auto
37
Results
Sales Vs Manpower
Sales
400
364 412
1000
875
Sales (Rs in crores)
808
Number of Employees
751 663 229
290
302 644 621 618
750
235
199 200
625
180 00-01
CN_ISB_Aug06
500 01-02 02-03 03-04 04-05 '05-06
38
Year
Number of employees
345
Results
Sales to Gross fixed assets
4.5
UOM : times
4.1
4.0
3.6
No of times
3.5
3.4
3.0
2.7
2.5
2.2
2.4
2.0 00-01
CN_ISB_Aug06
01-02
02-03
Year
03-04
04-05
'05-06
39
Results
Inventory turn
36
UOM : times
35
31
No of times
30
28
24
24
21
18 01-02
CN_ISB_Aug06
02-03
03-04
04-05
'05-06
40
Year
Results
VAPCO
7.0
UOM : times
6.0
6
No of times
5.0
4.4
4.0
3.7 3.2 3.2
3.0 01-02
CN_ISB_Aug06
02-03
03-04
Year
04-05
'05-06
41
Results
Suggestions / employee
40
38 38 38 39
UOM : Nos/employee
40
35
Nos
30 25 01-02
CN_ISB_Aug06
02-03
03-04
04-05
'05-06
42
Year
Results
Sales Vs Floor space
400
Sales
15908
412
17000
15450 302 14710
Sales (Rs in crores)
Floor space
290
14500
235
200
229 12680 12680
13250
180 01-02 02-03 03-04 04-05 '05-06
12000
Year
CN_ISB_Aug06
Floor Space (Sq. mt)
43
345
364
15750
Where this has got us @ SCL
Lowest cost producer of Air Compressors (for HCVs) in the world 100% on-time-delivery to customers for the LAST 3 years 100% improvement in employee productivity 75% improvement in inventory turns 40% improvement in space productivity
CN_ISB_Aug06
44
Praise from the Expert
This summer in India I visited a remarkable air brakes plant belonging to the TVS Group that is one of the leanest operations I have ever seen outside of Toyota
- Mr Jim Womack President and Founder Lean Enterprise Institute
April 2002
CN_ISB_Aug06
45
To summarise
Lean Manufacturing is a broad system strategy, but successful implementation is in the details. Lean Manufacturing is an Organization-wide Change process. Successful Implementation requires commitment & involvement across all levels. Lean solutions are usually no cost / low cost. “World Class” companies are implementing the Principles of Lean Manufacturing.
CN_ISB_Aug06
46
Advantage India
CN_ISB_Aug06
47
Has the potential to become one of the top 5 economies by 2025 …..
USD billions
21,000 18,000 15,000 12,000 9,000
Real GDP *
US
6,000 5,000 4,000 3,000 2,000
India would be the Third largest Economy (after China & US) by 2050 “Goldman Sachs Report”
Japan China
Germany Italy France S Korea
India @ 8% UK India @ 6% Mexico Canad a
1,000 0 2003
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2005
2007
2009
2011
2013
2015
2017
2019
2021
2023
2025
Source: ACMA
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Opportunity for India
Largest diamond cutting and polishing centre Largest producer of milk, tea and pulses Largest livestock population for food processing 2nd largest two wheeler manufacturers 2nd largest jewelry market 2nd largest in cotton textile trade 3rd largest leather producer after China and Italy Weak in Manufacturing
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Miles to go….
India needs a Manufacturing Revolution Currently (largely) limited to Auto industry But this represents only 10% of Indian mfg.
Revolution needs to now spread to others- textiles, machinery, durables, electronics, electricals……
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Roadmap for World Class Organisation
World Class Organisation Lean Manufacturing Total Productive Maintenance New Product Development Standardisation Daily & Policy Management Restructured Manufacturing System Quality System 5S Work Practice Total Employee Involvement
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CULTURE
VALUE ADDING ZERO DEFECT PERPETUTITY VISUAL FACTORY PDCA OWNERSHIP ADHERENCE DISCIPLINE TEAM WORK
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12 Steps to Lean Implementation
STEPS Step 1 : Value stream mapping MEASURES Process ratio in percentage
Mapping the process flow for a product / product family
Step 2 : Balance to takt time
Match the pace of production to the pace of sales
Ratio between cell bottleneck time and takt time
Step 3 : Single piece flow Layout changes Layout changes Step 4 : Spider man system Step 5 : Process stability Quantity
Loss elimination through TPM
1 WIP at each stage Pitch 2 hours Variation +/- 5% Variation +/- 5% Percentage of missed cards per shift 1 Takt Rejection Step 3 status Every part every shipping window QP process (QP1, QP2 and QP3) 52
Step 6 : ProcessLoss elimination through TPM stability Quality Step 7 : Pull system
Paced withdrawal
Step 8 : SMED Step 9 : Poka yoke Step 10 : Operator ownership Step 11 : Production levelling Step 12 : SOP
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Value Stream Mapping
Month/weekly/daily plan Production Control Supplier
Supplier SCL-Foundry
Marketing
Monthly/Weekly Daily Fax Monthly schedule
Customer
Introduce supermarket Flap assembly automation
ily Da Or
Takt time 51 Sec.
Demand/month 30000 1020 nos /day
OX OX
Milk run
4X Daily
r de
Reduce spider man Pitch to 30 minutes.
Combine operation of flap assembly and body greasing UB m/c 1 C/T=85s FIFO CO=900 Uptime=85.4% I 2 shifts 24 LB m/c C/T=300s CO=0 Uptime=100% 2 shifts 1 C/T=87s CO=900 Uptime=85% 2 shifts Introduce Rabbit chase in Assembly 1& 2 for single piece flow Leak check FIFO Plating & deburr 2(shared) I 1 48 C/T=45s CO=0 Uptime=100% 2 shifts Rejection 4% Ultrasonic Cleaning I 125 1 C/T=14s CO=0 Uptime=100% 2 shifts Introduce Conveyor for Assembly 2
1X daily
Inspection stores
FIFO
Assembly 1 5
Assembly 2 12 I 24
I 24
Shipping Packing 1(shared)
C/T=300s CO=0 Uptime=100% 2 shifts
I 16
C/T=60s C/T=51.42s C/T=240s CO=0 CO=0 CO=0 Uptime=100% Uptime=95% Uptime=95% 2 shifts 2 shifts 2 shifts Rejection 0.2% Reduce work content to balance takt time Value added Time Production lead time = 10236s 29575s = 34.6%
Date - 26.12. 2005
.034 day 300s CN_ISB_Aug06 .017 day 902s
Introduce crow foot arrangement for mounting bolt tightening
Process Ratio
Automation of four bolt tightening 0.028 day 0.015 days 130s
Introduce low cost automation in assembly 1 and 2 0.09 days 100s 300 s 240s 53
0.132 day 164s 8100s
Miles to go….
For too long, we have seen our national advantage through the lens of wage cost only….
Time to exploit others
• Technology & Processes • Human competence • Innovativeness
Time to build on our strengths !!
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“It isn’t enough to be going fast in the right direction. If you’re not going fast enough, you can still get run over.”
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Thank you
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doc_989529296.pdf