DEEPENING SPECIALIZATION

LEAN MANAGEMENT

ASSIGNMENT I
SUBMITTED BY- MANYA SINGH (BFT/19/158),
SRISHTI JAIN (BFT/19/155)
 ACKNOWLEDGMENT
The success and final outcome of this assignment required a lot of
guidance and assistance from many people and we are extremely fortunate
to have got this all along the completion of our assignment work. Whatever
we have done is only due to such guidance and assistance and we would
not forget to thank them. We respect and thank Dr. Rajani Jain who gave us
the golden opportunity to do this wonderful project on the topic “Lean
Management” and understand the topics in a much deeper way with the
help of multiple case studies and for providing all the support and
guidance and. This helped us in doing a lot of research and came to know
about so many innovative and futuristic things to come by. We are
extremely grateful to her for providing such a nice support and guidance.
Last but not least, we would like to express our gratitude towards our
friends and respondents for support and willingness to spend some time
with us.

Submitted By: \ Submitted To:

Manya Singh (BFT/19/158) Dr. Rajani Jain
Srishti Jain (BFT/19/155)
What is Lean Management?
Lean management is a method of managing and organizing work with the goal of
increasing a company's performance, particularly the quality and profitability of its
production processes. The Toyota Production System served as inspiration.

Lean management aids process optimization by minimizing non-value-added activities

(unnecessary operations or transportation, waiting, overproduction, and so on), as well
as poor-quality costs and problems. This method is primarily reliant on a management
plan that allows people to work in the best conditions available. Finally, the strategy
aims to achieve two primary goals: full customer pleasure and employee success.

Lean manufacturing defines waste as anything that does not bring value to the
customer in order to reach this goal. This can be a process, activity, product, or service;
anything that needs a time, money, or skill investment but does not provide value to the
client is waste. According to the Lean definition, idle time, unused talent, excess
inventory, and inefficient procedures are all waste.

As a result, the Lean methodology's two primary pillars are:

• Respect for people

• Continuous improvements
Lean management is currently a widely used concept in a variety of industries. It is,
nevertheless, a descendant of the Toyota Production System, which was founded
roughly 70 years ago.

The Birth of Lean

In the late 1940s, Toyota created the foundations of Lean manufacturing with the goal
of eliminating operations that did not add value to the final product. They were able to
achieve considerable gains in productivity, efficiency, cycle time, and cost-efficiency by
doing so. Lean thinking has expanded across many sectors as a result of this significant
influence, and has grown into five core Lean management principles, as defined by the
Lean Management Institute. Indeed, in his 1988 essay "Triumph of the Lean Production
System," John Krafcik (now CEO of Google's self-driving vehicle project Waymo) coined
the word "Lean."

Benefits of Lean Management

The Lean principles' rising popularity stems from the fact that they focus on improving
every area of a work process while including all levels of a company's hierarchy. There
are a few significant benefits that managers may take advantage of.

• Focus. Using the Lean method, you will be able to reduce waste operations. As a
consequence, your workers will be more focused on value-adding tasks.

• Improving efficiency and productivity. Employees will be more productive and

efficient if they are focused on producing value rather than being distracted by
confusing duties.

• Smarter procedure (pull system). You'll be able to deliver work only if there's a
need for it if you set up a pull mechanism. This sets the stage for the following
one.

• More efficient utilization of resources. When you base your production on

actual demand, you'll only be able to use as many resources as you need.
As a result, your business (team) will be far more adaptable and able to respond to
customer needs much more quickly. Finally, Lean management concepts will enable you
to establish a reliable production system (Lean system) with a greater likelihood of
increasing overall performance.

Different Lean Management Tools

Lean tools are frequently defined as learning and experimentation tools. Employees take
ownership of these tools and collaborate to enhance them as part of a continuous
improvement approach.

A wide range of tools are available, including:

KAIZEN:

Kazien focuses on reducing waste, or ‘muda’ and removing work processes that are too
difficult and problematic-‘muri’. As a lean business tool, Kaizen put emphasis on success
occurring only when the entire employee look for areas to enhance and giving
suggestions depended on their observation and experiences.

5S

The 5S quality tool is derived from 5 Japanese terms beginning with the letter ‘s’. This is
used to create a workplace suited for visual control and lean production.

• Sort: Eliminate whatever is not needed.

• Set in order: organize whatever remains by neatly arranging.

• Shine: clean the workplace

• Standardize: schedule regular cleaning

• Sustain: make 5S’s a way of life.

KANBAN:
As part of Just In Time (JIT) and Lean manufacturing, this is a visual technique for
regulating production. As partof a pull system, it controls what is made, in what
quantity and when. Its purpose is to ensure that it only produces what the customer
asked for and nothing more or less.

PDCA:

The PDCA (Plan- Do- Check- Act) cycle is a model for bringing out change. It is an
very important part of thelean manufacturing philosophy and key step for
continuous improvement of people and process

The 5S Methodology
5S methodology is one of the fundamental tools to intensify continuous improvement
process in organizations and represents a transformation in 5 steps of a job, which is
characterized by maximum efficiency at the micro level and minimum loss. Any
company that applies the 5S methodology will have reduction of different types of
waste, efficient workflow due to lesser machine breakdowns, reduced inventory,
effective problem visualization, lower defect rates, visible and swift results in an efficient
way. Although many articles stated the significant impact of implementing lean
manufacturing in worker environment, non-quantifiable results were reported.
This practice is based on the saying “A place for everything, and everything in its place.”
By putting everything in its rightful place where it belongs and keeping the surrounding
clean, it makes easier for employees to do their job at a faster pace while minimizing risk
of injury. A messy, cluttered, difficult to navigate space can lead to mistakes, slowdowns
in production, and even accidents, all of which interrupt operations and negatively
impact a company.

The term 5S comes from five Japanese words:

• Seiri (Sort) Selecting and categorizing workplace items into two primary
categories, essential and nonessential, in order to eliminate unneeded or seldom
used elements that collect and cause chaos. Hirano recommended sorting tools
and materials into particular categories based on their relevance or usage, as
eliminating items that aren't needed expands the workspace. As a result, rather
of needing to invest in a larger workspace, money and space are saved.

• Seiton (Set in order). Making room for each thing previously classed as
"essential" so that it may be easily accessed is referred to as "straightening." To
maintain order in the workplace, "important" objects are labelled, categorized,
and put according to their frequency of use, allowing operators to easily identify,
utilize, and return them to their correct location.

• Seiso (Shine). The third "S" aims to establish the optimum working environment
(including machines, tools, floors, and walls) in order to keep the workstation in
perfect operating order. Designing and implementing effective techniques that
must be integrated into the operators' regular maintenance responsibilities is
one component of "Seiso." It's essential to note, however, that the third "S" also
looks for ways to prevent a filthy and disorganized workplace.

• Seiketsu (Standardize). Standardization entails using basic criteria that are

apparent to all operators to distinguish between normal and abnormal
situations. To do this, operators must be able to distinguish between acceptable
and wrong actions using visible controls (signs) that are clear and easy to
comprehend. As a result, everything should be properly labelled and identifiable.

• Shitsuke (Sustain). To ensure the methodology's effectiveness, the director must

commit to encouraging the behaviors that each S requires. Regular audits to
disclose the status of each S are one of the most important aspects in achieving
and maintaining a successful implementation of the approach. The audits should
be centered on verifying that the stated processes and timetables are followed.
The audit is also a great chance to ask questions and offer comments in order to
encourage future changes.
 Sample Case Study

Impact of 5S on productivity, quality, organizational climate and

industrial safety in Caucho Metal Ltda

Redalyc.Impact of 5S on productivity, quality, organizational climate and industrial safety in

Caucho Metal Ltda.

SUMMARY

Conventionally operated garment industries are facing troubles. The problems

inherent include longer production lead time, high rework, poor line balancing,
be short of standardized work process and performance measurement system
for the employee, high work-in-process, short production capacity, high labor
(worker) absenteeism, high rework, high fabric misuse and deprived resource
overheads are among others. The purpose of this research is to analyse whether
the 5S technique can be used to enhance manufacturing enterprises by
conducting a case study in a small company in Bogotá. The findings indicate
that there is a positive relationship between the study factors and the
implementation of the 5S methodology, as evidenced by an increase in
productivity and quality, as well as an improvement in the organisational climate
and a reduction in the risks identified in the workshop, as measured by
performance measures.

Keywords : 5S methodology, productivity, organizational climate, industrial

safety, quality.

INTRODUCTION

For its contribution to the improvement of processes focused on productivity and

quality, safety and work environment, with quick results and low implementation
costs, the 5S methodology is regarded as one of the performing operational
practises that shows the best results in studies of world class manufacturing.
Despite the fact that the technique is generally recognised in the industrial sector,
there is little evidence of its application since firms are hesitant to apply this type of
methodology in a formal fashion.Colombian businesses, in particular, have not given
enough attention to continuous improvement procedures. As a result, the 5S
approach is an underutilised tool in Colombian small and medium-sized businesses.

The industry chosen for this study is based in Bogotá, Colombia, and is in the metal
mechanical industry. This business manufactures metal and rubber parts for the
automobile sector. The company is now operating in a filthy and chaotic
atmosphere. This poses many safety issues for their personnel and impedes product
monitoring both within and outside of the manufacturing process. Furthermore, the
firm lacks control over the final product, work in progress, reworks, and scrap,
making it impossible to determine the true level of productivity and quality.

Launching the Program

The 5S team launched the programme at the company's premises, and all
employees were there. Workers discovered the information via a presentation. The
goal of each S, as well as the possible benefits as a result of their implementation
and paradigms that have to be abandoned in order for the implementation to be
effective. Some images were shown at the end of the lecture in order to explain the
changes that could be accomplished.

Seiri-Classification

A red tag was used to detect and eliminate non-essential components for the first S.
Red tags were created to be simply legible, be used, and to convey all necessary
information for each object.

The space was modified to temporarily store the marked components. The first S
was implemented by designating each item as either essential or non-essential in
order to identify those objects that did not belong in the area or whose usage was
insignificant. Nonessential goods were then relocated to the temporary storage
space. Consequently, 16 non-essential components were identified and labelled.

(Three pieces were scrapped, four were moved to other departments within the
industry, five were sold as scrap metal, and three were reorganised inside the
workshop.)

Seiton (Sort)

Employees were trained on the sorting procedure once the first S was implemented.
Because each element required a distinct location and storage technique, it was
necessary to split the previously categorised objects into tools, work in progress,
templates, samples, and machinery supplements in order to conduct the
categorization. Then, based on the frequency of usage, three categorization criteria
were established: (1) frequently, (2) occasionally, and (3) rarely used goods. In this
stage, visual control was mostly employed to identify objects. Shadow profiles on
tool boards were used to group frequently used tools. Rarely used tools, on the other
hand, were stored in a toolbox strategically placed in the workplace. Finally,
equipment supplements were sorted and placed on a shelf by reference so that
each supplement could be easily identified by the operator.

Seiso (Sweep)

Cleaning and inspection days were set aside for the workplace. At the end of each
day, the operators cleaned their work space and all used objects in five-minute
sessions. During the monthly sessions, an operator thoroughly cleaned each
machine, the shelves, and the floor to look for anomalies. Operators also utilised a
checklist to assess the monthly cleaning session and offer improvement strategies
to address any previously discovered issues.
Seiketsu (Standardize)

Visual control was utilised to achieve standardisation once the previous three S's
were introduced. Painting, labelling, and delegating responsibilities were all part of
this process. To promote commitment to workplace cleanliness, each worker was
allocated to care after certain machinery and workshop items.

Shitsuke (Discipline)

This final stage assesses the extent of employee and manager participation in the
5S implementation. A discussion with managers and operators was held to
showcase the implementation's results using comparison pictures (Figure 1). Visual
aids were put throughout the workplace to offer direction to operators about the
need of maintaining order and cleanliness in order to foster excellent work habits
and sustain what had been accomplished thus far. Finally, audit dates were created
to track and assess the methodology's development in terms of compliance with the
standards specified in the former S.
RESULTS

Following results were achieved in different areas like productivity, quality,

industrial safety, organizational climate during the course of 12 weeks. These were
calculated using appropriate formulae and compared to the data before the
implementation.

• Partial productivity indicators [see equations (1), (2), (3), and (4)] conform
to the objectives of the project and their variables do not depend on seasonal
factors like sales, they were employed to quantify productivity in the
workshop. In addition, partial productivity indicators are the best way to
demonstrate the manufacturing industry's performance and provide feedback
in a short period of time.

Human Productivity = Products Produced / Working Hours (1)

Energy Productivity = Products Produced / Machine Hours (2)

Capital Productivity = Products Produced / Capital Input (3)

Total Factor Productivity= Net Production / Input * (Labor+Capital) (4)

The partial productivity factors of human productivity, energy (facilities), capital and
total factor productivity had a positive effect. Their performance improved by 39,
76%; 30, 93%; 30, 39% and 28, 57% respectively.

• Quality : Non-monetary measures (equations (5), (6), and (7)) were employed
to assess the quality of the procedures carried out in the workshop since they
are more objective, simple to quantify and comprehend, with an emphasis on
the physical process, and hence assist in the identification of regions when
there is room for improvement.

Percentage of wasted material = Total of damaged pieces per month

Total of processed pieces per month×100 (5)
Percentage of reprocessed pieces = Total of reprocessed pieces per month/
Total of processed pieces per month ×100 (6)

Percentage of reflected ironworks =

Total of returned ironworks to the workshop per month
Total of processed ironworks per month ×100 (7)

Rework and waste issues were notably diminished during the months controlled by
the performance indices used. The rates of reworked pieces, wasted pieces and
ironwork rejected were reduced by 62.93%, 82.94% and 71.42% respectively.

• The workshop's organisational climate improved in the following areas:

environmental conditions (48.6%), communication (26.6%), structure (53.9%),
motivation (29.5%), cooperation (30.9%), sense of belonging (36.1%), labour
relations (19.8%), and leadership (24.35%). The structure aspect was
encouraged not only by the 5S Methodology, but also by the job analysis and
process and procedures manual.

• In terms of workshop industrial safety, 85.7 percent of the risk sources that
previously had an unacceptable risk threshold presently have one. The
workshop's operators are now aware of the necessity of personal protective
equipment and how to properly utilise it.

• In the short term, it was shown that the value of all of the parameters
assessed improved, supporting the studies globally which explains the
benefits of the 5S approach on quality, productivity, and industrial
safety and any company's organisational climate.
LEARNING OUTCOME : We learnt that 5S methodology is a strategy to improve
performance in decision making and organizational growth.

• It not only produces positive results in productivity (the amount of goods or

services produced and the amount of resources used to produce them) and
quality (the efficiency in production or simply the quality increased by reducing
rework) but also in industrial safety and organizational environment.

• Through 5S the number of work-related accidents can be reduced as regular

cleaning and checking of tools, machines and equipment is done. Training given
during the implementation also helps operator understand proper use of
machinery.

• We learnt how successful implementation of 5S can help people view their

workspace as a healthy, safe and comfortable. It helps improve the
communication between different hierarchal levels of management which allows
easier flow of ideas and information. It builds a sense of belonging, teamwork
and betters labour relationships.

• Also, that it is important to brief employees on the aim and benefits of the
methodology before implementation. Demonstration through pictures help.
Thankyou