...challenges of lean applications in SMEs Written by Sundara Pavan Kumar Raavi Department of Industrial Management University of Central Missouri Submitted to Ms. M. Joleen Byerline Department of Industrial Management UNIVERSITY OF CENTRAL MISSOURI Abstract The prime objective of this paper is to find out the lean manufacturing adaptation hurdles in SMEs. In this study, a few SMEs are consider for experimental study and we can understand the overall idea about the ideology of SMEs functioning. Lean manufacturing is based on the principle of getting the same result with less human interference as well as less machine and material involvement. The scope of lean implementation is not only restricted to automotive industry but also has recognition in manufacturing industries in US. The in information in this study is collect from the professionals who have implemented and those who did not implemented the lean manufacturing tools in business. The research speaks some of the barriers, which came across while adopting manufacturing technique. Keywords: SMEs, Lean-manufacturing implementation, General view about Lean, Productivity...
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...International Journal of Engineering and Technology Innovation, vol. 3, no. 3, 2013, pp. 134-143 A Case Study Improvement of a Testing Process by Combining Lean Management, Industrial Engineering and Automation Methods Simon Withers1, Jose Arturo Garza-Reyes2,*, Vikas Kumar3, Luis Rocha-Lona4 1 2 3 4 Turbo Power Services, Bardon, UK. Centre for Supply Chain Improvement, The University of Derby, Derby, UK. Dublin City University Business School, Dublin City University, Dublin, ROI. Business School, National Polytechnic Institute of Mexico, Mexico City, Mexico. Received 04 April 2013; received in revised form 25 April 2013; accepted 26 May 2013 Abstract Increasingly competitive market environments have forced not only large manufacturing, but also smalland-medium size enterprises (SME) to look for means to improve their operations in order to increase competitive strength. This paper presents an adaptation and adoption by a UK SME engineering service organisation, of lean management, industrial engineering, and automation metods developed within larger organisations. This SME sought to improve the overall performance of one of its core testing processes. An exploratory analysis, based on the lean management concept of “value added” and work measurement technique “time study”, was developed and carried out in order to understand the current performance of a testing process for gas turbine fuel flow dividers. A design for the automation of some operations of the testing process...
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...MSc IE LEAN MANUFACTURING Profesor Madya Dr. Muhamad Zameri b. Mat Saman FKM Dr Zameri 1 TRANSFORMATION PERIOD EMPHASIS STRATEGY 60’S How to do more Mass Production p 70’s How to do it cheaper Automation 80’s How to do it better QC, TQM, QFD q 90’s How to do it quicker IE 2000’s How to do it with less ???? Dr Zameri 2 Options for Increasing Contribution Marketing Option Current Sales Cost of Goods Gross Margin Finance Costs Subtotal Taxes at 25% Contribution $100,000 $100 000 – 80,000 20,000 – 6 000 6,000 14,000 – 3,500 $ 10,500 Finance/ Accounting Option Increase I Reduce R d Sales Finance Revenue 50% Costs 50% $150,000 $150 000 – 120,000 30,000 – 6 000 6,000 24,000 – 6,000 $ 18,000 $100,000 $100 000 – 80,000 20,000 – 3 000 3,000 17,000 – 4,250 $ 12,750 Dr Zameri Lean Option Reduce R d Production Costs 20% $100,000 $100 000 – 64,000 36,000 – 6 000 6,000 30,000 – 7,500 $ 22,500 3 Changing of Mind Set Selling Price = Cost + Profit Profit = Selling Price – Cost g The focus should be on reducing cost g The best way to reduce cost is to remove the waste Dr Zameri 4 Value Price Price Price Profit Price Profit Cost Cost Traditional thinking T diti l thi ki Cost + Profit = Price Lean thi ki L thinking Price - Cost = Profit Dr Zameri 5 Lean Operations Developed by the Toyota Motor Company p y y p y To compete with...
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...Summer Internship Report Organization Capacity Management, Citibank Analyzing branch banking services and operations for improving process turnaround time and operational efficiency resulting in customer delight. Saryu Kamra & Anubha Mathur 7/14/2011 ABSTRACT This project on Branch Banking Operations attempts to trace and map the branch banking processes end to end and identify all non value added activities and wastages in terms of time so that the Turn Around Time for Customers as well as time required for completion of any transaction or instruction can be reduced considerably. The data collection was divided into two parts, first at individual level and then at the process level. For the former, a chart was prepared for different individuals to map their daily activities and the time taken for these so as to make a comparative analysis vis-à-vis their efficiency in terms of the time spent with the customer and processing further. For the latter, a time and motion study was carried out to map the various Branch activities which were broken down to the micro level to analyze the wastages and superfluous activities involved in the processing of different instructions with the help of Value Stream Maps. The wasteful activities were then identified using the Lean Model introduced by Toyota Production System and classified into seven different categories. These were then individually analyzed and the extent of their effects on various activities and processes were analyzed...
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...Lean is the concept which starts from removing waste [1]. Lean Production is the practice of mass production in which work is completed in minimum time, in a smaller space, with very few workers, with less equipment, and yet achieves highest level of quality in final product [2]. Since the evolution of Toyota Production System in 1950s [2], the lean movement has been widely accepted in automobile industry. However, acceptance of lean technology in the process industries (steel sector) have been much slower [3]-[4]. For removing the obstacles like resource complexity, the idea of the point of discretization for the process industry has been explained by Abdulmalek et al. (2006). This notion is based on the fact that in production flow route...
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...a challenge to limit the production period in a bid to maintain the supply in an ever-innovative market setting. The purpose of this paper, therefore, is to dissect the nature of lean thinking, by investigating the definition of the term lean production and the methods and goals that associate with this concept. In addition to that, this essay will explain into detail how the lean management style differs from the other popular management concepts. As such, the article aims at giving a clear presentation of lean thinking and production and the manner in which they influence the business operations. This will happen through a review of the contemporary literature on the term lean, and a summary of the principles and practises associated with lean thinking as well as the stated purpose of the management style in event management operation. Based on this an in depth evaluation of the validity of lean thinking will be made in line with effective event management operations. Literature review Lean is often a short-term waste reduction and cost cutting technique. Lean thinking, therefore, is set of cost reduction toolkits that form the basis of a programme or initiative. The fundamental concept of creating a successful lean business system lies in achieving the desires of customers at the time they need it (Womack and Jones, 1996). As such, this implies the pursuit of perfect...
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...Article Summary ………………………………………………….. 5 3. Problem Analysis………………………………………………… 13 4. Conclusion…………………………………………………………. 18 References……………………………………………………………… 18 Introduction JCR Drillsol PVT.LTD JCR is a large scale manufacturing company who’s objective is to provide unique and unprecedented solutions in every arena of the Drilling, Mining and Construction Industry. JCR’s variety of specialized RIGs finds its application in every possible arena of the drilling industry, making them one of the most competitive services in the business. JCR Drillsol, products include highly efficient and heavy-duty RIGs for a wide range of drilling applications ranging from RC, DTH, Tractor mounted and Wagon Drills, Pumping and Testing Units to Drag Bits, Mud Pumps and Mini Truck Mounted Drills. Our technology also designs other drilling solutions such as DTH Hammers, RC Hammers, RC Drill Rods, Tricone and O-Dex Bits. Problems faced in the industry Various problems faced by the industry are: * Material Wastage and Cost Factor A major problem faced by JCR Drillsol is the wastage of materials and cost factor. The Product output per unit input of raw materials became lower. It also occurred due to heavy inventory. It also occurred due to bad process design and layout. The other factor, which leads to material wastage, was bad quality from process and design. Hypothesis: Lean Manufacturing can be used to eliminate the wastage of materials...
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...Eric William Walker A Senior Project submitted In partial fulfillment of the requirements for the degree of Bachelor of Science in Industrial Engineering California Polytechnic State University San Luis Obispo Graded by: Checked by: Date of Submission: Approved by: EXECUTIVE SUMMARY Helical Products Company is a business that manufactures flexure products, such as couplings and u-joints. As part of a movement towards lean manufacturing, Helical Products Company of Santa Maria, California is need of a principle that will help them continuously improve their shipping department. A study of 5S, a lean principle focused on waste reduction, will be done to investigate opportunity for implementation. A literature review takes a peek on research of lean manufacturing history, lean workbook/ tutorials and lastly case studies and journal articles. The output of research provides a design plan for Helical using 5S and other lean principles compatible with 5S, such as error proofing and Value Stream Mapping. A list of suggestions based on analysis and feedback from the Helical shipping department is provided. Lastly, a 5S manual catered for Helical Products Company is attached in the appendix. 1 TABLE OF CONTENTS Executive Summary....................................................................................................................................... 1 Introduction ............................................................................................
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...processes to cope with the ever growing challenges. To be more efficient is the only way to stay and earn profit in a global market. Industries are giving lot of attention to Lean manufacturing. Several industries are struggling to be world class. Principal adoption of lean manufacturing is still found to be complex. Lean Manufacturing is a set of techniques, which have developed gradually over a long period and are based on various minor to major breakthroughs that help in reducing cost and hence increase productivity. Lean is a philosophy of manufacturing that incorporates a collection of principles, tools and techniques into the business processes to optimize time, productivity, HR, and assets, while improving the quality level of products and services to their customers. LEAN MANUFACTURING Lean manufacturing is defined as to produce same and more than the mass production using less effort, lesser space, without any new inventory, better quality and lesser defects. Lean manufacturing improves operating performance by focusing on the quick and uninterrupted flow of products and materials through the value stream. To achieve this, the various forms of manufacturing waste must be identified and eliminated. Waste can include any activity, step or process that does not add value for the customer. If we try to define Lean Then we can say “A systematic...
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...Student ID: 212003918 Date: 07/7/11 Chapter Page# 1. Introduction 3 2. Review of Previous Studies 3. Approaches 4. Expected Results 5. References CH-1 Introduction A warehouse management system, or WMS, is a key part of the supply chain and primarily aims to control the movement and storage of materials within a warehouse and process the associated transactions, including shipping, receiving, put-away and picking. The systems also direct and optimize stock put-away based on real-time information about the status of bin utilization. Warehouse management systems often utilize Auto ID Data Capture (AIDC) technology, such as barcode scanners, mobile computers, wireless LANs and potentially Radio-frequency identification (RFID) to efficiently monitor the flow of products. Once data has been collected, there is either one batch synchronization with, or a real-time wireless transmission to a central database. The database can then provide useful reports about the status of goods in the warehouse. The objective of a warehouse management system is to provide a set of computerized procedures to handle the receipt of stock and returns into a warehouse facility, model and manage the logical representation of the physical storage facilities (e.g. racking etc), manage the stock within the facility and enable a seamless link to order processing and logistics management in order to pick, pack and ship product out...
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...Introduction: Lean manufacturing: Lean manufacturing is a systematic approach of identifying and eliminating waste through continuous improvement, flowing the product at the pull of the customer in pursuit of perfection. Lean manufacturing is a comprehensive approach to eliminating waste from your operation. It is a systematic methodology that uses various tools to achieve the goal of reduced waste. The 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. Waste: Waste can be defined as a substance or a thing that is no longer useful in a process. Waste is in fact anything that adds cost, but not value to a product. Toyota executive Taiichi Ohno identified seven types of wastes in manufacturing system, namely: Overproduction- It is considered to be the worst of the wastes, as it multiplies the other 6 wastes and hides your true capability, thereby causing you to make bad decisions such as turn work away or invest in unnecessary additional capacity. Defects- It is also pure waste as poor quality is produced. Time, energy and materials are consumed needlessly, and even if the customer is not lost, you still need to do the work again. Inventory- It is the worst of all the 7 wastes. It ties up cash, requires labor, energy and fixed assets to manage it, and moreover it provides a false sense of comfort by hiding problems. Motion- In terms of ease...
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...Quality Issues with Toyota Motor Vehicles Randy Kenepp 821 Vickie Drive Del City, OK 73115 Phone: 405-473-7998 Email: rkenepp@gmail.com Managing Quality - BSOP 588 Professor: Richard Sheng October 19, 2014 I. Introduction: Toyota Motor Corporation (TMC) is a motor vehicle and production business. TMC is headquartered in Aichi Prefecture, Japan. TMC was founded August 28, 1937 by Kiichira Toyoda. Kiichira Toyoda’s son Akio Toyoda is the current President of the company. The company was originally a division of the Toyoda Automatic Loom Works Company founded by Kiichira’s father, Sakichi Toyoda. World War II halted many of the company’s initial manufacturing, but by 1950, Toyota reopened production facilities. In the 1960s and 1970s, TMC began rapidly exporting automobiles to foreign markets (The Editors of Encyclopædia Britannica, paragraph 4). TMC has continued to grow and has manufacturing plants and distribution channels setup in many countries. As of May 2014, TMC has a 397.05 billion yen, or 3.69 billion dollars, of capital. As of March 31, 2014, TMC has 338,875 employees. TMC has had a long standing reputation for quality. TMC’s quality philosophy is stated on their website, Toyota-Global.com (2005), “In June 1961, TMC decided to adopt the system of Total Quality Control (TQC) to modernize management operations. To realize TQC, all employees in Toyota were required to ‘regard the next processes (on the production line) as their customers and provide them...
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...Action Plan – Implementing a Lean Transformation’ LEAN Final Project Alex Scholfield February 29, 2012 Summary Lean manufacturing can add significantly value to an organization by streamlining processes through the identification and elimination of muda or waste. Introduced by Toyota, Lean is more than just a tool, but a philosophy that needs to be adopted and incorporated into the culture of the organization. It is very important that the organization can see that leadership have bought in to the approach and are willing to support Lean. Numerous examples exist that demonstrate failed attempts at implementing Lean. It is important that organizations appreciate that they cannot simply wake up one day and choose to introduce Lean. It took Toyota many years to develop their culture into one of continuous improvement. For organizations that are new to Lean, the effort required will be significant in order to realize the true value associated with Lean principles. Poor planning will almost certainly result in disappointment and leave a strong negative association with any future Lean attempts along with a big investment with little to no return. With a focus on continuous improvement and continuous flow, manufacturing based on pull rather than push demand will assist organizations in becoming Lean. While Lean is a long journey, it can be one that returns significant value to an organization. What follows is a view of the history of Lean, some of the tools such as...
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...Lean Manufacturing in Milk Industry of Pakistan: An Analysis of a Distribution Warehouse. Nimra Masood1, Sara Shahid2,Muhammad Asim3 1 NUST Business School, National University of Science and Technology, Islamabad, Pakistan. 2 NUST Business School, National University of Science and Technology, Islamabad, Pakistan. 3 Center for Advance Studies in Engineering, Islamabad, Pakistan. (1n_masood@gmail.com),(2ss_sjm6@yahoo.com)(3a007pk@yahoo.com) Abstract – This Paper aims to apply Lean Manufacturing Tool to the Distribution Center of a Milk Industry in Pakistan. A survey to the Distribution Warehouse was made to identify different activities involved in the distribution process. A Process activity Map was Applied to further divided in to four main categories to indentify the effectiveness and efficiency of the whole process. Milk Industry is one of those industries which have its importance all over the world including Pakistan. The results indicate that there is a lot of room for improvement and expansion in the process. There is consistent increase in the need of milk in Pakistan with the Companies to benefit a lot from this region. The Findings suggested in this paper can help the milk manufacturers to effectively satisfy the customers and decrease the overall cost of production. Keywords – Lean Manufacturing, Process Activity Map, Distribution Warehouse of Milk Industry, Pakistan I. INTRODUCTION Milk industry is one of those industries which has its presence...
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...entity Advantages Limitations Evolution TPS use among other companies V Exercise 2: Grid analysis (Weighted scoring model) Exogenous factors & assumptions Endogenous factors & assumptions Constraints VI VII Exercise 2: Location recommendation Exercise 3: Decision tree analysis TMMC production capacity recommendation Limitations Past performance: RX 330/350 VIII Exercise 4: Current regional production strategy Assessment Change recommendations IX Summary Appendix A References Page 2 3 4 4 7 7 8 8 9 10 11 13 16 16 17 17 18 19 19 19 21 21 23 24 1 I. Executive Summary Toyota Motor Corporation is leading the way to future mobility through innovation, productivity, quality and efficiency. Toyota uses a self-developed strategy known as the Toyota Production System (TPS) to guide business process improvements. This strategy applies principles of “just-in-time” production, also called “lean”, to align supply closely with consumer demand while avoiding surplus inventory. The report defines eight TPS terms, i.e. jidoka, just-intime, hoshin, heijunka, muda, kaizen, standardized work, and pokayoke; and gives examples of how terms are applied in other industries. TPS has been utilized by a variety of industries all over the world, though many organizations tailor system components to their needs rather than embracing TPS as a total management system. The advantages of TPS are savings in time, space and resources resulting in increased efficiency and revenue, however, TPS limits...
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