Group 5

Why should Khandekar implement Lean?

• In 2006, demand increased by more than 75% to 7200 panels, where
the maximum capacity of the plant was 4000.
• Too much waiting time due to batch production system
• Errors corrected on shop floor without notice of managers creating
ripple effects of error causing scrap of high lead time raw materials
• Low space utilization of plant layout
• High lead time of aluminum/copper bus bar and FRP insulation
material
Trace the implementation pattern of lean in Siemens Kalwa's plant.
Launch of SPS and introduction
Gewald and Consultants
Observations and analysis of current
process flow (AS IT IS)
Maruti plant visit by Khandekar
and more

Identify waste areas

(Space/time/scraps)
Meetings between managers
and consultants

Identify changes and implementation

(Layout/culture/supply
chain/JIT/support system) Khandekar and vedaks visit to
turkey factory

Monitoring performances (KPIs) Decision of shop floor to be

focus point of lean
implementation
What resistance did Khandekar face in
implementing the change and Why?
• Initially when the layout is reorganized people were allocated to
different departments. This caused some workers who finish their work
early and relax to wait for the products. This created disinterest among
the customers.
• The people were pointing fingers for the various problems that arose.
• The bonus to the workers were tied to the 8 number of panels that
move out of the station which was fixed to 6 panels after long
discussions with labor union.
• Worker flexibility was reduced because of the changes.
• Suppliers were skeptical for JIT due to economies of scale
How did Khandekar handle the resistance?
• To tackle the problems cultural changes was adopted by khandekar.
• Joint prayer was conducted to create a sense of belongingness.
• Dress code with lean logo was provided to both blue and white collar
workers.
• The team met at different intervals like morning sunshine meeting, in the
afternoon and during andon pulls which increased the team bonding.
• Monitored each individual through set KPI’s and tied them with payment.
• Suppliers will handle the inventory but only supply the required items at a
time.
Is Siemen's Kalwa plant effective in
achieving lean implementation?
• In order to be called an effective implementation of lean all sections
of the plant should have been in sync with lean implementation with
each other.
• In this case, only the manufacturing department was focused on lean
implementation, whereas other departments like Design, SOE,
Vendors, and TOP were still yet to be integrated with the lean
manufacturing unit. The current implementation of lean is partial in
nature
• Unless all the sections do not implement lean, siemens will not be
able to sustain the lean advantage for a longer amount of time.
What more should Khandekar need to do so
that the changes are not reversed?
• Extend the lean implementation to SOE/Design i.e. Engineering cycle.
This would ensure a reduction in the lead time for products and
streamline the manufacturing process more by more and more
process simplifications and standardizations.
• Extend full lean implementation to suppliers in order to benefit the
true advantage of JIT with vendors without inventory pileup in
siemens as well as vendors.