Guide :Dr.G.

Venugopal
Yadhu G
Roll No :17
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Lean strategy in manufacturing involves a
series of activities to minimize waste and
Non value added (NVA) operations from
production, customer relations, product
design, supplier networks and factory
management and improve the value added
(VA) process.

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Lean approach was first introduced by Toyota
Production Systems, wherein the wastes highlighted
are
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Applying lean strategies incorrectly,
increases the inefficiencies of an
organization's resources and reduced
employee confidence in lean strategies.
(Marvel and Standridge 2009).
Therefore, applying the appropriate lean
strategy for the specified industry is of
paramount importance.
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Behrouzi and Wong (2011) reported that the
principal reasons behind the failure of the
lean practices are
1. the lack of an effective implementation
methodology.
2. inadequate understanding of lean
performance measurements needed to
evaluate the improvement in effectiveness
and efficiency .
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The three core principles of lean strategy are
identified as:
1 Identification of value
2 Elimination of waste
3 The generation of smooth flow
(Womack et al., 1990)
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1. Identifying customer defined value
2. Optimizing the value stream
3. Converting the value flow smoothly by
controlling and eliminating wastes
4. Activating the demand pull by synchronizing
customer demand and information flow
5. Perfection of all products processes and
services
( Womack and Jones, 2003)
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new.docx
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The proposed approach was implemented in
EXCEL Limited, Australia.
The company specializes in low and medium
voltage switchgear products.
This research mainly focused on electrical
control and communication cubicle assembly
RC-01 ES.
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Define and assess the system
A lean implementation team is formed
Define the manufacturing performance indicators
Sketch the existing process status and map

Measure the current state of the process using CPM method

Implementation of lean tools based on the identified waste

Evaluation of effectiveness and efficiency of the proposed
approach


Continuous improvement techniques and culture

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Based on the perspective of customer driven
value, authors assessed the current status of
lean strategy in the assembly unit.

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Project
Manager
Mechanical
Engineer
Master
Student

Lean
Manufacturing
Expert
Skilled
Operators
Production
Manager
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The commonly used Performance indicators
are time ,cost ,quality and flexibility.
In this study the authors focused on the
Time associated with the assembly
process.
Continuous Performance Measurement(CPM)
method is used in this research to assess the
current state of performance.
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Sketch the existing process status and map
using VSM, visual control and time study
method.
This map represents all the existing wastes, NVA
activities in a process that transforms raw
materials into a finished good.
Major steps in the production process are:
1 receipt of raw material
2 assembly of the cubicles at different stages
3 testing
4 inspection
5 packaging

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The the existing process layout for RC cubicle
assembly process was responsible for major part
of time wastes and therefore redesigned the
layout. The work station had been separated
with specific task allocations for each operator
which ultimately balanced the workloads.
Handling problems were identified as the
second most crucial waste in the process
Third was the shortage of working parts and
tools in work stations, overcomed by providing
different trolleys in each work station with
necessary tools and parts.
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A major part of the proposed methodology is
to continuously assess performance before
and after lean implementation.
In this process, the first step is to measure
the current state of the process in terms of
efficiency, effectiveness, VA/NVA time ratio
using process map and CPM.

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Before Lean
After Lean
Improvement
Value Added Time (minutes)
27.15 27.15
Non-value added time
1.Adjusting parts
2.65 2.65 0
2.Walk to hold parts
6.03 1.93 -4.1
3.Walk to get tools
2.45 0.27 -2.18
4.Get parts
5.8 3.15 -2.65
5.Unpack and disassembly
5.15 5.15 0
6.Inspection/paper works
2.5 2.5 0
7.Handling parts and tools
7.46 5.91 -1.55
8.Cleaning
1.03 1.03 0
9.Rework
1.39 1.39 0
Total (Non Value added time)
34.46 24.34 -10
Total (VA+NVA)
61.61 51.49 -10
VA/NVA ratio
.79 1.12 42%
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The overall performance of the
manufacturing process is measured by
considering both effectiveness and efficiency
of the production process.
Efficiency = (output value ) 100%
(input resource )

= no of output average pitch time 100%
no of workers total allocated time
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Effectiveness compares actual output to
targeted output from a production line
(Bayou and de Korvin, 2008).

Effectiveness
= Actual number of output 100%
Targeted output value
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Before Lean
After Lean
Improvement
Daily Production Target
20 26
Achieved Production Target
12 19
Average pitch time
61 51 -10
EFFICIENCY (%)
61 72 +18
EFFECTIVENESS
60 73 +22
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Monthly meeting and discussions among the
operators.
And they discussed about new innovations or
new techniques to be implemented in their
production floor to reduce NVA operations
and effective use of available resources.
5S
Kaizen
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Many companies may not have expert lean
team and lean corporate culture .
Identification of key performance indicators
is also crucial for leanness evaluation.
Sometimes, it is not possible to identify and
measure all the performance indicators in a
specific company.
Finally, implementation of this method may
be costly and time consuming .
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The overall achievement in reducing NVA
time , average processing time and
improvement in process efficiency and
effectiveness were found satisfactory for the
company.
The proposed lean implementation
methodology can be applied in
manufacturing organizations (especially in
assembly productions) to improve
operational performance.
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Azharul Karim and Kazi Arif-Uz-Zaman, A methodology for
effective implementation of lean strategies and its
performance evaluation in manufacturing organizations, J.
Business Process Management, Vol. 19 No. 1, (2013 ), PP
169-195.
Manimay Ghosh, Lean manufacturing performance in Indian
manufacturing plants, Journal of Manufacturing Technology
Management, Vol. 24 No. 1, (2013) , PP 113-122.


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The lean team found that the existing process layout for
RC cubicle assembly process was responsible for major
part of time wastes and therefore redesigned the layout.
In the new layout, the working stations and the machines
are located in optimum distance for operators which
actually reduced walking distances among them.
Handling problems were identified as the second most
crucial waste in the process. The work station had been
separated with specific task allocations for each operator
which ultimately balanced the workloads. Eventually the
handling waste was minimized by the separation of the
tasks.
In order to overcome the problem related to shortage of
parts and tools in work stations, different trolleys in each
work station was allocated with necessary tools and
working parts
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Asses the status of Lean Strategy in the company
A lean implementation team is formed
The team further defines the manufacturing performance
indicators based on production quantity, processing time and cost.
Sketch the existing process status and map using VSM, visual control
and time study method to identify existing process wastes
Measure the current state of the process using CPM method

Different lean tools are implemented considering existing
production scopes and wastes into the process.
Again the effectiveness and efficiency of the proposed process
is evaluated in the next phase using CPM
The culture for continuous improvement techniques is
developed within the process environment
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Before Lean
After Lean
Change
Value Added Time (minutes)
27.15 27.15
Non-value added time
Adjust
2.65 2.65 0
Walk to parts
6.03 1.93 -4.1
Walk to get tools
2.45 0.27 -2.18
Get parts
5.8 3.15 -2.65
Unpack and disassembly
5.15 5.15 0
Inspection/paper works
2.5 2.5 0
Handling
7.46 5.91 -1.55
Cleaning
1.03 1.03 0
Rework
1.39 1.39 0
Total (Non Value added time)
34.46 24.34 +10
Total (VA+NVA)
61.61 51.49 +10
VA/NVA ratio
.79 1.12
Daily Target
20 26
Achieved Target
12 19
Average pitch time
61 51 +10
Efficiency
61 72 +11
Effectiveness
60 73 +13
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The method suggests that at early stage of lean
implementation, a lean team needs to be formed
with skilled personnel from different department of
the company. The team members should have
sufficient expertise in lean strategies and
implementation methodology. Many companies may
not have people with this expertise.
A team member without necessary knowledge and
skills adversely affect the overall success of the
project and can measure unrealistic performance of
production system.
Identification of key performance indicators is also
crucial for leanness evaluation. Sometimes, it is not
possible to identify and measure all the measures of
performance indicators in a specific company.
Finally, implementation of this method may be costly
and time consuming but new methods and techniques
need to be applied within companys budget and
resources.
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Lean techniques provided better results
depending on the firm size; practices such as
setup time reduction, multifunction employees
and Kanban system provide better organizational
performance regardless of firm size.
Wan and Chen (2009) identified 12 groups of lean
tools (Autonomation, concurrent engineering,
line balancing, manufacturing cell, productivity,
pull, quality, single minute exchange of die
(SMED), standard work, visual control, VSM, and
worker flexibility) to implement in two type of
systems
(quantitative and repetitiveness of product).
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VSM technique developed by Rother and
Shook (1999) becomes one of the most
commonly used lean tools.
Melton (2005) also suggested five key lean
tools especially for process industries
namely,
( kanban, 5S, visual control, Poke Yoke and
SMEDs.)
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set up monthly meeting and discussions
among the operators. In these meetings,
they discussed about new innovations or new
techniques to be implemented in their
production floor.
The overall achievement in reducing NVA
time and average processing time and
increment in process efficiency and
effectiveness were satisfactory
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To meet such expectations, the
manufacturing industry is focusing on
advanced manufacturing strategies in
particular the
manufacturing-task strategy and
manufacturing-choice strategy

(Miller and Roth 1994, Swink and Way 1995).
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The manufacturing-task strategy represents
the competitive capability the manufacturing
firm must accomplish in order to compete
successfully in its business or marketing
environment

(Davies and Kochhar2002, Leung 2002)
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The manufacturing-choice strategy
represents the appropriate selections of
technologies and management strategies to
improve the manufacturing system.
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The RC control and communications cubicle
is a microprocessor-based controller that
provides a directional over current, earth
fault and sensitive earth fault relay, auto
reclosing relay, instantaneous metering,
event log, demand logger and remote
terminal unit (RTU) for remote control in a
single package.
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