BITS C323 STUDY ORIENTED PROJECT ON

DEVELOPMENT OF PERFORMANCE MEASUREMENT SYSTEM FOR LEAN MANUFACTURING SYSTEMS.

SUBMITTED TO : Dr. Srikanta Routroy

MID-SEM REPORT MADE BY :

VINOD SINGH VIPUL KHULLAR

2010ABPS591P 2010ABPS539P

What is Lean Manufacturing?

Lean manufacturing, lean enterprise, or lean production, often simply, "Lean," is a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination. Working from the perspective of the customer who consumes a product or service, "value" is defined as any action or process that a customer would be willing to pay for. Lean Manufacturing is a set of techniques derived from the Toyota Production System in the mid 1990s by Womack and Jones. It also has roots in the production methods of Henry Ford, the American World War II era Training Within Industry program, and the profession of Industrial Engineering, which originated from the studies of Fredrick Taylor and Frank and Lillian Gilbreth. Lean Manufacturing, or any application of Lean principles and techniques is focused on the definition of value and the elimination of waste, which is anything that consumes resources without adding value to the product or service being delivered.

Tools and techniques of Lean Manufacturing

1. Cellular manufacturing- Simplify workflow and concentrate on a single product or narrow family. It improves quality, inventory and many other parameters. Cellular Manufacturing organizes small work units of 3-15 people to build a single product or a narrow product family. Ideally the product is completed without leaving the workcell. 2. Elimination of waste- Elimination of waste is an overarching theme of Lean Manufacturing. All the various tools and techniques are aimed at this ultimate goal. 3. Jidoka- Jidoka is the practice of stopping an integrated assembly or production line when any workstation encounters problems. Such stoppages create a crises atmosphere that encourages immediate and permanent solutions. 4. Kaizen- Kaizen is a generic Japanese word for improvement or "making things better." In the context of Lean Manufacturing, it can apply to rapid improvement (Blitz) or slow continuous improvement (quick & Easy). 5. Kanban- Kanban establishes a small stockpoint (usually at the producing workcenter) that sends a signal when items are withdrawn by a downstream process. The producing workcenter simply replaces the items removed.

6. Takt time- To balance the output of sequential production processes and prevent inventory buildups and shortages.
7. Pokayoke-Uses a wide variety of ingenious devices to prevent mistakes. An example is an automotive gasoline tank cap having an attachment that prevents the cap from being lost.

8. 5S-Organized approach to housekeeping that ensures tools, parts and other objects are in known, optimum locations.

9. One-piece flow- it is the concept of transferring only a single piece between process steps within a workcell with no accumulation of inventory. It forces near-perfect balance and coordination. 10. Six Sigma- A rigorous, disciplined methodology using data and statistics.

Companies implementing lean manufacturing systems

NAME OF THE COMPANY Dana Corp. Chelsea Food Services (Cleveland Plant) Birla Plus Cement Lean principles implemented Kaizen- to eliminate materials waste, reduce setup, and elevate customer satisfaction Apply Kaizen in a commercial food service operation that supplies Continental Airlines. Kaizen as part of integrated continuous improvement model broadly deployed across Businesses. Kaizen used to improve flow and better use space Use Kaizen to continuously improve cellular manufacturing Use lean to reduce waste,lost time and lost material resulting in 40% reduction in lead times In adhesive-dispensing operations such as packaging, general product assembly, the manufacture of disposable non-woven hygiene products and other industries, hot melt adhesive dispensing systems employ a wide range of components including dispensing guns manifolds and modules, nozzles, solenoid valves, melter filters and in-line filters as part of a complete system solution and as consumable aftermarket parts. These components are designed with

Batesville Casket Co dj Orthopedics de Mexico Nike

Nordson Corporation

Wipro

Lucent technologies

poka-yoke devices that help customers improve quality, avoid unnecessary mistakes on the production line and approach their goal of zero defects. i)DSSS+ Methodology Wipro employs DSSS methodology for software development. ii)DSSP Methodology used for designing new processes and products (iii) DCAM Methodology used for designing for customer satisfaction and manufacturability Use of poka yoke devices. They reported that
half of their 3,300 mistake-proof devices cost less than $100. However, they estimate a net savings of $8.4 million or about $2,545 per device.

Xerox

Use of six sigma tools and methods in both internal projects and projects for customers

CRITICAL SUCCESS FACTORS

Front Line Employees

KEY PERFORMANCE INDICATOR

1.Discipline 2.Knowledge 3.Way of life 4.Mindset 5.Attitude 6.Commitment 7.Involvement-People and unions 8.Capacity 9.Trust 1.Commitment 2.Lean leadership and all 3.Mindset 4.Attitude 5.Gemba 1.Availability 2.Capability 3.Flexibility 4.Standardised work 1.Integrated Initiatives 2.Systems 3.Structures 4.Methodology

Leadership

Basic stability

Integration

Strategic Driver

Lean promotion office

Lean tools and techniques

1.Management support 2.Resource allocation 3.Strategy deployment 4.Goal alignment 5.Long term philosophy 1.Full time facilitator to co-ordinate lean implementation process 2.Change measurement principles must be followed 3.Knowledge 4.Measurement 1.Tools 2.Techniques