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Materials Today: Proceedings 5 (2018) 7668–7677 www.materialstoday.com/proceedings

IMME17

Design and evaluation of a Lean Manufacturing framework using Value Stream


Mapping (VSM) for a plastic bag manufacturing unit.
Adwait Deshkar*, Saily Kamle, Jayant Giri, Vivek Korde
Mechanical Department, Yeshwantrao Chavan College of Engineering, Nagpur, 440001, Maharashtra, India.
.

Abstract

The paper principally aims to implement the emerging trend of making an organization 'lean', in a small scale industry. A Lean
manufacturing framework is developed using value stream mapping for a plastic bags manufacturing unit. It consists of mapping
the current process of the industry and evaluating the same to identify wastes and bottleneck processes. Based on the 7 wastes of
lean manufacturing, solutions are suggested to remove the wastes identified. A future state map based on suggested solutions is
created. Both current and future state map are simulated and analysed for different attributes such as TAKT times, production
lead times, processing time to evaluate the overall gain achieved by using value stream mapping. Simulation results predicted a
reduction in TAKT time from 46 minutes to 26.6 minutes. Number of rolls made per day increased from 28 to 50.
Implementation of lean manufacturing framework increased the value added time by 74.5%. Simulation results indicate that
framework maybe applicable to various other small scale industries.
© 2017 Elsevier Ltd. All rights reserved.
Selection and/or Peer-review under responsibility of International Conference on Emerging Trends in Materials and
Manufacturing Engineering (IMME17).

Keywords: Lean Manufacturing; TAKT time; Lead time; Value added time; Value stream mapping; Simulation; Waste elimination.

1. Introduction

Lean Manufacturing aims to completely satisfy customer demands without sacrificing quality by using the most
efficient and economical method available to produce them. Principles of lean manufacturing were devised from
Japanese manufacturing industries. The term ‘Lean’, was coined by John Krafick (1988). Lean Manufacturing can
be implemented in two ways. The first method consists of identifying all wastes in the production process and

* Corresponding author. Tel: +91-8237644897


E-mail address: adwaitdeshkar001@gmail.com

2214-7853 © 2017 Elsevier Ltd. All rights reserved.


Selection and/or Peer-review under responsibility of International Conference on Emerging Trends in Materials and Manufacturing Engineering
(IMME17).
Adwait et al./ Materials Today: Proceedings 5 (2018) 7668–7677 7669

eliminating the ones which have a direct impact on it. The steady elimination of wastes helps in reducing costs and
improving quality. Second method is more focused to make the production process more streamlined so as to
remove unevenness. This paper aims to implement Lean Manufacturing using a combination of both methods. A
manufacturing process is made more efficient by reducing various wastes in effort, inventory, manufacturing space,
and cycle times. Lean Manufacturing is conventionally applied to large scale industries. An attempt has been made
in this paper to reduce production lead time using principles of Value Stream Mapping (VSM) to simulate Lean
Manufacturing in a small XYZ plastic bag manufacturing industry.
Value Stream is a summation of all value adding (VA) and non-value adding (NVA), activities that are
undertaken to manufacture a part of chosen product family from raw materials. Rother and Shook define Value
Stream Mapping as ‘a pencil and paper tool that helps you visualize and understand the flow of material and
information as a product makes its way through its value stream’[1]. VSM consists of mapping the current or as is
state of the process, analysing it for wastes and then creating a future state map by eliminating the wastes identified.
VSM is more of a qualitative process. Flow of information related to production is classified as; 1. Material Flow, 2.
Information Flow. VSM is the only process which includes both flows in current and future state maps and help
establish a relation between them. Initial stages of VSM consists of mapping the current state of the manufacturing
plant. The current state is scrutinized to identify wastes and bottleneck processes. Apt solutions are proposed to
eliminate wastes, based on which a future state map is created. Future state is simulated in a virtual environment.
The simulation results are compared with the previous existing results to evaluate reduction in cycle times, lead
times, TAKT times, and inventory. The results obtained from comparing simulations will help small scale industries
to grasp the power of Lean Manufacturing. The main objective of this paper is to create a lean manufacturing
framework suitable for small scale industries and analyse, evaluate the results obtained on implementing it. This
section analyzes existing literature currently available on VSM. Mike Rother and John Shook (1999) in their book
‘Learning to See’, laid the framework for VSM. A simple example of stamping factory was used to explain VSM
and develop current and future state maps for the same. Hines and Rich (1997) evaluated existing wastes and
proposed a new typology to implement VSM based on seven tools. The typology concentrates more on a particular
waste which the industry plans to eliminate [2]. They concluded that the waste reduction philosophy put forward by
Toyota is not only restricted to automobile sector but can also be implemented for different industries as well. Bhim
Singh (2009) conducted an extensive literature review of VSM and classified available literature as case study,
modelling work, conceptual work and survey articles. Available literature was further classified based on attributes
of VSM discussed in them. Venkataraman and Ramnath (2014) implemented Lean manufacturing system on a
crankshaft manufacturing unit by eliminating non-value adding wastes. Seth and Gupta (2005) applied VSM to
reduce cycle time in an Indian industry. This paper is mainly focused on improving cycle time and productivity at
the supplier end. The production output per person worker was improved to 17.54 frames from 13.95 frames. Lead
time reduced significantly from 3.215 days to 0.54 days. Upadhye and Garg (2010) performed a case study on a
Medium Scale manufacturing Enterprise (MSME) and recommended use of a lean strategy irrespective of its status.
Lasa and Laburu (2008) evaluated the performance of VSM tool after it was implemented in a manufacturing firm.
This paper validates the theoretical claims made by VSM process. The anticipated reduction of 4 days, in lead time
was achieved by the manufacturing firm. The paper highlights the practical success of VSM by monitoring it in
actual practice. Gurumurthy and Kodali (2010) used simulation along with VSM to overcome shortcomings of
mapping process. Current and future state models of a PVC door and pipe manufacturing system were simulated in
QUEST software for a period of 30 days. Total lead time was reduced from 37.87 days to 12.68 days. Singh and
Singh (2013) highlighted the power of VSM by implementing it in an auto parts manufacturing industry and
reducing its cycle time by 69.41%. Most of the case studies performed are implemented on large scale industries
from automotive sector. Requirement of a generalized framework which can be applied primarily to a small scale
industry (SSI) is an absolute necessity. Table 1 lists some case studies performed on VSM.
7670 Adwait et al./ Materials Today: Proceedings 5 (2018) 7668–7677

Table 1. List of major case studies on VSM.


Key Contributors Type of Industry

Rother and Shook (1999) Stamping industry


Hines and Rich (2012) Theoretical research
Seth and Gupta (2005) Two wheeler assembly plant
Bhim Singh (2009) Theoretical research
Venkataraman and Ramnath (2014) Crankshaft manufacturing
Upadhye and Garg (2013) Medium Scale Manufacturing Enterprise
Lasa and Laburu (2008) Plastic components for automobiles and electronics
Gurumurthy and Kodali (2010) Doors and windows
Singh and Singh (2013) Auto parts manufacturing organization

2. VSM Methodology
VSM is a graphical tool and includes very less information about a production process. Instead, the current and
future state maps provide vital information related to production process such as cycle time, lead time and TAKT
time. VSM is essentially a pencil and paper approach in which data is collected by walking around the shop floor
and measuring process times. The future state map is not validated before being implemented on the shop floor. A
new method to conduct VSM is shown in Fig.1. Current and future state maps are modelled into a simulation
software. Analysis of numerous simulation results gives the most optimum future state map which is then
implemented onto the shop floor. Simulation minimises chances of problems while actual implementing future state
map on to the shop floor. Also iterations performed ensure that the best possible solution is implemented. VSM is
static process and only captures a snapshot on a day [3]. Stages of VSM are discussed below:
1. Select Product Family: All processes are not mapped in value stream analysis. A particular product family is
chosen for mapping. A family is a group of products that undergo similar processing steps which are performed by a
same set of machinery.
2. Draw Current State Map: After selecting a proper product family, current state or as is state of the plant is
mapped.

Fig.1. Conventional VSM process.

Fig.1. Modified Approach to VSM process.


A simple A3 paper is used to draw current state map. Prerequisites before mapping current state are:
 Cycle time, Changeover time, Uptime
 Inventory
 Customer requirement
 Supply schedule
 Sequence of operation
 Number of workers on each operation
 Number of working hours, shifts and breaks.
3. Analyse current state map: Current state map is thoroughly analysed for waste, bottleneck processes, points
of congestion. Seven wastes as listed in TPS are; overproduction, waiting, transport, inappropriate processing,
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unnecessary inventory, unnecessary motion and defects [2]. Current state map is analysed for all wastes and
priorities are assigned to each waste found.
4. Eliminate wastes and draw future state map: The wastes found in current state map are eliminated based on
their priorities. The production flow process is made more continuous and pull is preferred rather than push [1].
After eliminating wastes, future state is drawn.
5. Simulate future state map: The future map is modelled into a simulation software. Simulations are performed
for different iterations of future state map and data for each simulation is recorded. After analysing data from
different simulations, the most favourable iteration is selected for implementation.
6. Implementation: The selected iteration of future state map is then presented to the top management to be
approved for implementation.

3. Case Study

3.1. Company background

The firm under study is located in MIDC, Nagpur, Maharashtra and deals with manufacturing of plastic bags and
sheets to be used for storing explosives. The company employs 25 people and operates in 11000 sq. ft. of combined
inventory and shop floor space. The products manufactured by XYZ are; LDP (Low Density Polyethylene) sheets,
LDP Layflat and LDP bags. Production Control Department (PCD) of XYS handles all customer requests and raw
material orders. PCD is made responsible to meet customer requirements in stipulated time frame. XYZ operates 24
hours of a day in 3 shifts of 8 hours each in a 6 day week. Each shift consist of 30 minute lunch break and 15 minute
tea break.

3.2. Process information

LDP Bags product family was chosen for case study. LDP bags are made by mixing LLDP (Linear Low Density
Polyethylene) and LDP granules in 52% to 48% by weight. Raw materials consist of small plastic granules. The
granules of different grades are first mixed together in ratio of weights and then fed to the extrusion machine.
Extrusion machine heats the granules and extrudes a long hollow tube of plastic. The tube is rolled onto cardboard
rollers to simplify handling. Cardboard rolls are then sent to the printing press. Logo and relevant information is
printed on both sides. The rolls are cut in desired length and heat sealed at one end simultaneously. 500 bags are
made from each roll after cutting and sealing operation. The bags are sent to packaging and shipping bay where they
are packed in batches of 500 and made ready to ship. The whole manufacturing process is depicted in Fig.2.

Fig.2. Sequence of Operation


4. Current State Map
4.1. Demand and process parameters

The as is or current state of the shop floor is captured in the form of symbols and process box in the current state
map. Prerequisites required to map current state have been mentioned above. Current state mapping starts from
customer end. Customer of XYZ have a monthly requirement of 60 tonnes. XYZ must also fulfil weekly
requirement of 15 tons. Customer sends their requirement to production department of XYZ through electronic
means 5 day prior to forecast. XYZ has a MoU (Memorandum of Understanding) with raw material suppliers under
which the company has to order a fixed amount per month at discounted rates. For the product family under study,
40 tons of LLDP and 20 tons of LDP must be ordered per month. Both variants of raw material are supplied by the
7672 Adwait et al./ Materials Today: Proceedings 5 (2018) 7668–7677

same supplier. Raw material is supplied as a combination of both variants in 4 deliveries as seen in Table.2. The
maximum capacity of delivery truck is 16 tons. After receiving the raw material, both variants are stored together.

Table 2. Description of supply system.


Trip LLDP (tons) LDP (tons) Total (tons)

1 8 8 16
2 8 8 16
3 12 4 16
4 12 - 12
Total 40 20 60

XYZ performs 5 operations on raw material to manufacture explosive carrying bags of desired gauge. A description
of critical process parameters is given in Table 3. Granules used as raw material and printing process can be seen in
Fig. 3.
Table 3. Process parameters.
Process Cycle Time Changeover Time Uptime Number of
(min) (min) (%) Operators

Mixing 10 3 50 2
Extrusion 12 2 100 3
Printing 8 3 100 2
Sealing 8 2 100 2
Packaging 8 2 100 1

Fig. 3(a) Granules used as raw material Fig. 3(b) Printing process

4.2. Terminologies in current state map

A brief description of terminologies used in current state map is provided below:


 Cycle time: Essentially, time required to complete a cycle is known as cycle time. The time between one
product coming off a machine to another product (of same part family) coming off is termed as cycle time.
 Changeover time: Time required loading and unloading parts and restart cycle again is known as
changeover time.
 Lead time: Time required to complete the manufacturing process from start to finish is known as lead time.
It includes value adding, non-value adding time and WIP.
 Inventory: Inventory is termed as a company’s partially finished goods waiting for completion and eventual
sale. Inventory is both desirable and non-desirable.
Adwait et al./ Materials Today: Proceedings 5 (2018) 7668–7677 7673

 Value adding time: The amount of time during which operations are performed on WIP is termed as Value
adding time. It is obtained by adding the cycle time for each process [4].
 Non value adding time: The amount of time spent in non-value adding activities such as transportation,
inventory and handling is termed as Non-value adding time.
 TAKT time: The rate at which products must be made to meet existing customer demand is known as
TAKT time. Calculated by dividing available working time to demand per day [2].

4.3. Current State map simulation & analysis

The total working time available is = {(8*60)-(30+15)}*3 = 1305 minutes.


At the current state the company makes 28 rolls in a day.

(TAKT Time) current = ⁄ = 1305/28 = 46.6 minutes

Customer demand is 15 tons weekly. To meet the demand, factory must produce 50 bags daily.
(TAKT Time) required = 1305/50 = 26.1 minutes
As seen from above comparison, the required TAKT time is much less than the current TAKT time.
Total lead time of the manufacturing process was calculated to be 6.04 days. The total processing time for the
current state is 46 minutes. The current state map was converted into a simulation model using Process Simulator®
[5]. Due to the size constraints in simulator, the demand was scaled down and simulated for 25 work units using in
process and out process buffer for mixing process. Simulation results pointed out excessive idle times for painting
and sealing processes due to their fast cycle times as compared to processes downstream. Unwanted inventory
between extrusion and mixing due to the following reasons; less cycle time of mixing process and mixing produces
200 kg in one cycle while extrusion uses 50 kg in one cycle. Daily requirement is sent to all processes in the value
stream. But, shipping of finished product is done once a week. Hence, daily requirements are not met meticulously
and towards the end of week, both machines and workers have to perform overtime to meet demand. This reduces
efficiency of both resources. The current output of plant is 1.4 tons/day, which is insufficient to meet the customer
demand. Thus, problems observed in current state of XYZ are:
 Idleness: Cumulative idle time of workers and machines adds up to 25% of shift time at sealing and
printing operations. Mixing produces 200 kg in 10 minutes while extrusion process downstream requires
50 kg for one cycle. This leads to accumulation of raw material thus consuming time and available area
on shop floor. Push is observed in nearly all operations. All processes in value stream are scheduled to
meet weekly requirement.
 Discontinuous flow: There is hardly a continuous flow downstream due to the excessive differences in
cycle times. Extrusion machine does not run on maximum output capacity due to unavailability of
helper to operator. Current state map (Fig. 4) and simulation results (Fig. 5) are shown below. The
process was performed for a day and 28 rolls were obtained with an average cycle time of 1302 minutes.

Fig. 4. (a) Amount of idle time in processes (b) VA and NVA time
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Fig. 5. Current State Map


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5. Future state map simulation & analysis

To eliminate the aforementioned problems in current state, different models were created and simulated to
compare results. The critical problems in the current state are; idleness and long cycle times of downstream
processes. The following changes were proposed in current state map:
 Mixing process should be eliminated altogether. Two supermarket based pull systems can be placed in
its place. The raw materials from supplier are directly classified into LDP and LLDP and stored
separately. Before starting extrusion process, the second supermarket is stocked with the day’s
requirement of raw materials. The extrusion process sends a withdrawal Kanban when raw material is
required.
 Due to elimination of mixing process, the 2 operators are sent to extrusion and packaging. Extrusion
machine now runs on maximum output capacity, thus reducing its cycle time to 10 minutes.
 The extrusion process is the pacemaker process. Due to its reduced cycle time, the cycle times of all
other process downstream can be reduced and enable them to run at maximum efficiency.
 Physical pull is incorporated between processes to make the flow continuous. FIFO (First in First out) is
implemented between operations close to each other.
 The pacemaker process is scheduled every cycle. Due to this, strict schedule must be followed by each
process upstream thus avoiding overtimes. Modified cycle times and parameters are listed in Table 4.
Table 4. Proposed Process parameters.
Process Cycle Time Changeover Uptime (%) No. of
(min) Time (min) Operators

Extrusion 10 2 100 4
Printing 6.5 3 100 2
Sealing 6.5 2 100 2
Packaging 3 2 100 2

A simulation model was created based on above mentioned cycle times to validate the feasibility of changes and
predict results. Future state map (Fig. 6) and simulation results (Fig. 7) are shown below. Idleness of all processes
was reduced as the flow is made more continuous. Due to implementation of supermarket system, unwanted
inventory between extrusion and mixing process was eliminated. The overall lead time is reduced to 6 days. The
processing time is reduced to 26 minutes. This is equal to the required TAKT time.
Number of rolls produced per day = 1305/26 = 50
Number of bags produced per day: 50*500 = 25000 bags.
Weight of bags (Weight of 1 bag is 0.1kg) = 25000*0.1 = 2.5 tons/day = 15 tons/week

Fig. 6. (a) VA and NVA for future state. (b) Idle and working percentage
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Fig. 8. Future State Map

Fig. 7. Future State Map


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Fig. 8. Percentage utilization of each activity.

A large increase in value added time as seen in Table 5 is due to elimination of orthodox industrial practices such
as, mixing prevalent in XYZ. Percentage utilization for every activity per hour is shown graphically in Fig. 8. Lean
manufacturing framework discussed above maybe applicable to other SSI.
Table 5. Current and Future states: A comparison
Parameter Current State Future State

TAKT Time 46.6 min 26 min


Max Cycle Time 12 min 10 min
Minimum Cycle Time 8 min 3 min
Value added time 15% 89.85%
Non-value added time 55% 9.54%
Rolls made/day 28 50

6. Conclusion

The paper outlines a framework to implement Lean Manufacturing using VSM in a small scale industry. Current
state map of the company helped to identify different wastes in the selected value stream. The wastes were
idleness, underproduction, unwanted WIP, high TAKT times, lack of pull and proper scheduling. Simulation of
current state map provided insights into root causes of the wastes. VSM tools were utilized to eliminate non value
adding activities and create future state map. Percentage of value added time in the total lead time increased from
15% to 89.85%. TAKT time was reduced from 46.6 min to 26 min. Number of rolls made increased to 50 per
day. The cycle time of pacemaker process was reduced thus increasing pace of overall process. Scheduling of
work orders was also implemented to meet strict demand requirements and reduce load on machines, workers.
The results obtained from simulation were presented to management of XYZ for further consideration and
implementation.

References
[1] Mike Rother, John Shook (1999), ‘Learning to See Value Stream Mapping to Add Value and Eliminate MUDA’, Lean Enterprise Institute.
[2] Hines P., Rich N (1997). ‘The seven value stream mapping tools’, Int J of Op. and Prod. Mgmt. Vol 17 No.1, pp. 46-64.
[3] Gurumurthy A, Kodali R (2011). ‘Design of Lean Manufacturing Systems using Value Stream Mapping simulation’, J of Manufacturing and
Tech. Mgmt. Vol. 22, No. 4 pp. 444-473.
[4] Seth D, Gupta V (2005). ‘Application of value stream mapping for lean operations and cycle time reduction: an Indian case study’, Prod.
Planning and Control, Vol. 16, No. 1, pp. 44-59.
[5] Process Simulator; https://www.promodel.com/products/ProcessSimulator

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