15

CHAPTER 2
LITERATURE REVIEW

2.1

INTRODUCTION
This chapter presents an overview of the various methods of

assembly processes, Lean manufacturing and multi criteria decision making

models attempted by researchers.
2.2

LITERATURE REVIEW ON LEAN MANUFACTURING,

KITTING ASSEMBLY AND MCDM MODELS
Tamaki and Nof (1991) described the design method of robotic

kitting system as an alternative parts entry process which contributes to

reduction of over all assembly costs. Utilizing robots rather than manual work
to perform the parts kitting operation, in certain cases, improve productivity,
flexibility and part flow control. The specific objective is i) to propose a
design method for kitting ii) to develop design factors and criteria for
planning robotic kitting system, iii) to describe the plan for robotic binpicking system and iv) to explore robot hardware components suitable for
automated kitting systems and v) to analyse the several configurations of
robotic kitting systems using simulation tools.
Bozer and McGinnis (1992) defined, a kit as a specific collection
of components and/or sub assemblies together and combine with other kits to
support one or more assembly operations for a given product. They
developed a descriptive model which can be used to quantify the trade off in

16

material handling, space requirement and Work In Process between kitting

and line stocking for an assembly of stationary fitness cycle.
Jacobs and Meerkov (1993) analysed due time performance. This
performance index is analyzed for both lean and mass manufacturing
environments. In particular, it is shown that, to achieve a high due-time
performance in a lean environment, the production system should be
scheduled for a sufficiently small fraction of its average production rate. In
mass production, due-time performance, arbitrarily close to one, can be
achieved for any scheduling practice.
Barker (1994) described a time based value adding framework to
direct development and continuous improvement. This author assumes that
many UK manufacturing organizations are inherently wasteful, with complex
production systems divorced from the core task of adding value. This waste
can be regarded as untapped potential which exists throughout the total value
adding chain. The total conversion chain from raw materials purchase to final
goods assembly is examined using this approach. Examples taken from the
electrical switch gear industry, operating within a post MRP II environment
using kanban type pull system triggers to control materials input, illustrate the
use and effectiveness of the approach.
Fynes and Ennis (1994) focused on the issue quality in both a
manufacturing and logistics context, the latter labeled by Drucker as
managements last frontier. A case study of the journey to lean production at
Microsoft Irelands manufacturing plant and the implications of such changes
for the sales and service subsidiaries in Europe is included. Changes in
channel structure relationships, the management of the logistics from a
peripheral location and trust, are key elements of the case.

17

Acaccia et al (1995) concluded that the attainment of a lean

engineering organization is the critical requirement for ensuring a return on
investment in intelligent manufacturing. Achieving this is based on measuring
the effects of flexibility and on the capability of exploiting the resources
adaptability by combined control and management of the product and
production processes. This paper introduced the opportunities offered by the
availability of a prototypical implementation that joins a simple pilot plant to
a computer simulator.
Brynzer and Johansson (1995) focused on design of kitting system
in terms of location of the order picking activity, work organization, picking
method, information systems and equipment. Key design aspects and
performances from selected case studies are discussed like traveling time and
distance, picking information, Design of picking package, picking accuracy
and manual picking techniques. In the kitting system, results show that
picking efficiency and accuracy can be improved by making better use of the
product structure when dividing picking information.
Grajo (1995) developed LayOPT is an innovative facilities layout
analysis and optimization software package which can be used by layout
planners and engineers in the optimal solution of single and multiple floor
facility layout problems. LayOPT is ideal for the re-design of the overall
layout for an existing facility or the development of a block layout for a new
building. It can be applied to manufacturing, warehouse, office, and various
service facility layout problems. They described the LayOPT methodology
and presents an overview of the softwares features and capabilities.
Angelo et al (1996) focused on a typical job shop plant
configurations, for the semi automatic manufacturing of parts produced in
limited unitary quantities. The treatment consists of the quantitative
evaluation of the technological performance of a Flexible Manufacturing

18

System (FMS) with particular reference to the printed circuit board assembly
sector. The use of multi criteria decision methods as a tool, for adequate
decision-making in FMS design is presented aiming at reorganizing the
existing plant.
Braiden and Morrison (1996) described some efforts that have been
taken in Oshawa's Plant (Canada) for reducing the bottlenecks due to
automated monorail system to increase the current uptime to over 90%,
creating a greater production capacity.
De Toni and Tonchia (1996) proved that the pursuit of excellence
and the organizational change required by lean production leads to a
management - by- process organization, and that management by process
influences the Performance Measurement System (PMS). Also they did a
detailed analysis of the organizational change and its effects on performance
measurement.
Gunther et al (1996) analyzed the component kitting problem in
semi automated printed circuit board assembly. The main objective is to
minimize total operator time. In this work Gunther et al described the
component kitting problem faced by an electronic component manufacture. A
heuristic solution procedure is developed, which is computationally very
efficient even for large scale problems encountered in industries.
Computational results demonstrate that the heuristic tends to produce
solutions that are close to the optimum.
Mabry and Morrison (1996) suggested that in order to accomplish
the development of a production system, global best practices had to be
benchmarked and implemented in a pilot manufacturing area. Delphi Chassis
Systems established a Manufacturing Systems Core Team to develop a
production system for automotive component applications. The production

19

system will provide the foundation required for manufacturing to exceed any
customer requirement. The production

system concepts of Project

Management, Process Flow, Layout, Material Flow, Ergonomics, Workplace

Organization,

People-focused

Practices,

and

Supporting

Software

Development were all integrated as a whole system in sourcing project. The

new production system was 25% more productive than the original build cell
production method. The proposed modifications will allow a 50 % production
improvement to the current monorail system.
Rao et al (1997) examined and evaluated strategic and operational
level success factors, benefits and costs to develop strategies of implementing
Concurrent Engineering (CE). First, several success factors to implement CE
are identified based on literature review. Then, the AHP model is formulated
and used to assess the success factors, benefits and costs in order to develop
strategies to implement CE in Hong Kong electronics products manufacturing
companies. Also, the same model is used to determine the benefits/cost ratios
and to decide whether or not to implement CE in the Hong Kong electronics
industry.
Ahlstrom (1998) examined whether any sequence of manufacturing
improvement is initiated to improve manufacturing performance. This finding
grouped the principles of lean production into four different categories,
depending on whether the management devoted effort and resources to the
principles. They concluded that there are sequences in which lean production
principles are implemented, but in parallel, management also needs to devote
efforts and resources.
Bowen and Youngdahl (1998) discussed a case that manufacturing
logic has and, even should still, transfer to service operations. The argument
against the production line approach to service rests on an increasingly
out dated view of manufacturing operations. In many cases services are re-

20

industrializing by applying new model based largely on progressive

manufacturing technologies in both operations and human resource
management. Service business need not abandon production line thinking, but
they must shift their production line paradigm as has occurred in much of
manufacturing, itself.
Erridge and Murray (1998) examined the feasibility of the
introduction of lean supply within local government through three
experiments relating to live contracts, which demonstrate that lean supply is
compatible with local government purchasing as a value added strategy. The
paper concluded that most aspects of lean supply are applicable although
some adaptation of the model required to remove characteristics specific to
manufacturing and provide a better cultural fit with the legal and political
context of local government.
Panizzolo (1998) dealt with the challenges posed by lean
production principles for operation management. A multiple case study
approach was used to explore how the lean production model has been
adopted by 27 excellent firms operating in international markets and to
recognize the areas characterized by major problems and difficulties. A
research model able to accurately define and operationalize the lean
production concept was developed in order to carry out this empirical study.
Results from this study would suggest that for a full implementation of lean
production principles, the most critical factor appears to be the management
of external relationship rather than international operations.
Sawhney et al (1998) have developed training modules for small to
medium sized manufactures which typically have more difficult time
allocating resource to training. The methodology for developing the lean
manufacturing modules and the result of presenting these modules in pilot
sessions and in training sessions are presented.

21

Spaccarotella (1998) analyzed the process changes required to

move from a mass manufacturing operation towards a lean manufacturing
operation while meeting the quantifiable metrics. The following areas of the
process were targeted for design improvement: i) Reduce work in process,
ii) Identify system bottlenecks, and iii) Increase product flexibility. The
simulation modeling and analysis conducted in this study were valuable in
determining the effects of applying lean manufacturing concepts. Converting
processes from mass to lean systems can reduce excessive work in process
and increase process flexibility. Simulation analysis determine the optimal
system characteristics needed to produce the desired output and at a
significant cost saving.
Adams et al (1999) summarized the principles of lean, and
illustrated its application in a training simulation of a setup and changeover
reduction. Finally, success stories show how the University of Alabama in
Huntsville is helping many small and medium size manufacturers for
improving production rapidly using lean techniques.
Azim (1999) has undertaken a simulation study to help the design
of a material delivery system to support lean manufacturing in an automotive
body shop. Since, this was a Greenfield facility, simulation analysis was
employed in the very early design phase of the system to determine and
quantify the limiting parameters of the proposed lean material delivery
system. The updated information from the simulation model helped the
designers to evaluate alternate concepts and to understand some parameters
such as, traffic congestion, man power, and storage area requirement.
Ben Naylor et al (1999) combined lean thinking and agile
manufacturing with total supply chain strategy particularly considering
market knowledge and positioning of the decoupling point as agile

22

manufacturing is best suited to satisfying a fluctuating demand and lean

manufacturing requires a level schedule.
Black and Antani (1999) summarized that the next generation
factories, will be designed with manufacturing and assembly cells linked
together with a pull system for material and information control. In this linked
manufacturing system, down stream processes will dictate up stream
production rates. The linked manufacturing system strategies simplifies the
manufacturing system integrates the critical control functions before applying
technology avoid risks and makes automation easier to implement.
Katayama and Bennett (1999) dealt with three concepts that
concerns to manufacturing management like agile manufacturing, adaptable
production and lean production. These are described and compared within the
context of the modern competitive situation in Japan. A survey of Japanese
firms is described where the concepts are explored through a number of
questions concerned with strategy, action programmes and performance
measures. The result suggested that companies are trying to realize their cost
adaptability through agility enhancement activities.
Meara and Centers (1999) described middle management
participants is crucial for the success of lean manufacturing. Typically in
changing a manufacturing operation, efforts are focused on high level
management in regards to why the change is necessary and what benefits can
be expected. They also suggested that the middle manager has the
responsibility of supporting the managements decision while accepting the
risk of failure and possible reprisal, and yet, is not regarded as a key player.
Vaidyanathan et al (1999) discussed on the problem of supplying
JIT assembly work stations from a central source depot such as a warehouse
or work center. The specific problem addressed is how to determine the

23

vehicle routes for a fleet of vehicles so that two primary goals are met:
i) minimum inventory at the work stations, and ii) minimum vehicle idle time.
The problem is modeled as a vehicle routing problem with a nonlinear
capacity constraint. A heuristic solution procedure is outlined and a relaxed
formulation is given to provide a lower bound on the number of vehicles
required.
Caridi and Sianesi (2000) dealt with production smoothing, one of
the keys of success of Just in Time and lean Production. By levelling the load
of the work station, production smoothing allows a regular material flow,
shorter manufacturing lead times and lower work in process. In this paper, a
Multi Agent system is presented, which solves this problem according to the
theory of autonomous agents. The experimental results show that this
innovative approach has a good performance when compared with the
traditional ones.
Orr (2000) concluded that in an ignition coil manufacturing plant
in Brazil, the savings realized by utilizing lean manufacturing techniques are
brought out by comparing the initial concept to the final process. Metrics
utilized include: Investment, floor space and labor. The metric of equipment
value (speed/cost) is also introduced as a method of measuring the impact
of lean manufacturing.
Woo Lee and Hie Kim (2000) presented a methodology using
Analytic Network Process and zero-one goal programming for information
System projects selection problems that have multiple criteria and
interdependence property.
Bicheno et al (2001) described a case situation to pinpoint wasteful
activities in the supply chain, and in later stage to develop solutions. They
found production scheduling approaches to be a main cause of distortion in

24

the dynamics of the supply chain and the initial studies led to proposal for
scheduling improvements both within and between companies. The proposal
includes kanban, changeover reduction and TPM for changing the scheduling
frequency in accordance to the specific demand pattern. So, they developed a
new and holistic scheduling algorithm. The new algorithm is based on three
principles: 1) Runner and repeater are produced more often and in small
batches, but stranger will be less frequent in large batches, 2) The scheduling
pattern is set to be as repetitive and stable as possible, 3) The total amount of
time for changeover is set as a fixed properties of the total time available.
Nagi and Cheng (2001) discussed the potential of applying
knowledge based systems (KBS) in supporting performance management of
advanced manufacturing methodologies (AMT) and suggests a viable
research direction. It describes a research frame work using factor analysis to
identify factors relevant to measuring performance of AMT. The frame work
can be used as a first step in developing a KBS for performance measurement
of AMT project. Also they believed that well developed KBS is a powerful
and versatile tool for conducting and controlling performance measurement of
AMT projects in a manufacturing organization.
Nellore et al (2001) highlighted the interconnection between global
purchasing and lean supply. A strategic project live or die was chosen
within a major global auto Original Equipment Manufacturer (OEM) located
in North America. The analysis was done by screening data into some of the
conditions identified in lean supply which were observed to be the most
relevant in the case company. It was observed that lean supply is affected
negatively by global purchasing based on price and thus, price-based global
purchasing should not be used for sourcing complex components that requires
early supplier involvement and intensive engineering collaboration between

25

OEMs and suppliers. Instead, it could be proactively used in the sourcing of

less complex modules and simple components.
Potts (2001) integrated the impregnation process into a lean
manufacturing environment which addresses batch sizes, process times,
equipment foot print, plant layout and mobility, environmental waste and
automated component handling. The case studies show that a new generation
of equipment and materials were developed. These advancements were the
result of a systematic approach combining process, equipment and chemicals
to enable a traditional batch process to be integrated onto the lean
manufacturing shop floor.
Amasaka (2002) proposed New JIT, a new management technology
principle for manufacturing in the 21st century. New JIT contains hardware
and software systems as next generation technical principles for transforming
management technology into management strategy. The hardware system
consists of the Toyota Marketing System (TMS), Toyota Development
System (TDS) and Toyota Production System (TPS). To improve work
process, quality of all divisions concerned with development, production and
sales, the author has proposed Toyota Total Quality Management utilizing
Science (TQM-S) as software system.
Chrisrmansson et al (2002) discussed a material kitting case study
using alternative methods like picker to material principle and material
to picker approach. The material kitting was video recorded and pickers
physical exposure were assessed. The material kitting shows improved
productivity as compared with other kitting methods.
Ertugrul Karsak et al (2002) employed a combined ANP and ZeroOne Goal Programming (ZOGP) approach to incorporate the customer needs
and the Product Technical Requirements (PTR) systematically into the

26

product design phase in Quality Function Deployment (QFD). The

dependencies inherent in the QFD process are taken into account using the
ANP approach. Considering resource limitations and multi-objective nature of
the problem, a ZOGP model is constructed to determine the set of PTRs that
will be taken into account in the product design phase.
Joshi et al (2002) discussed the problems at kitting stage of a
Printed Circuit Board (PCB) assembly process and the use of simulation to
improve the process. It provides detailed information of the kitting process
followed at the manufacturing facility at which this research was conducted. It
was observed from historical data, that 10% of the kits at assembly setup had
discrepancies. The main objective of this research was to reduce these kitting
discrepancies by at least 50%. The sub-objectives were to implement a
continuous flow system, improve operational performance, ensure the on-time
delivery of kits, and implement a closed loop feedback system for better
kitting accuracy.
Sullivan et al (2002) illustrated a road map of how the Value
Stream Mapping can be an important tool to define, analyze, and quantify
waste such as excess WIP and defects. Visualizing sources of waste in the
current state as well as the potential benefits that can be realized in
implementing a future state for a product value stream can help the manager
to conduct equipment replacement analysis easily and objectively as they
consider and pursue the adoption of lean manufacturing.
Williams (2002) considered discrete event process simulation and
concluded it as a more proactive and important strategy for achieving
manufacturing efficiency. Also, concurrently lean manufacturing has become
a nearly essential corporate strategy to compete successfully in an
increasingly austere and global business environment.

27

Crute et al (2003) discussed the key drivers for Lean in aerospace

and examine the assumption that cross-sector transfer may be difficult. A
Lean implementation case comparison examines how difficulties that arise
may have more to do with individual plant context and management than with
sector specific factors.
Jagtap et al (2003) chosen a product family among the large
product varieties. An aggregate current state map is developed for product
family highlighting the various wastes, bottlenecks in the product value
stream. A future state is designed using process kaizen and flow kaizen from
aggregate current state maps. An aggregate future state map serves as blue
print for lean implementation. It results into seven waste reduction and lead
time improvement for a given product family.
Medbo (2003) reported on materials kit functionality, usefulness of
the materials kit in respect of operators handling of materials and cognition
during assembly work. His analysis comprises video recordings of nine plants
of Volvo automobiles. By using signal component methodology, his results
showed that the assembly work proved to be almost identical when there were
no technical differences between the layouts.
Prince and Kay (2003) presented the background to why some
manufacturing organizations require a combination of agile and lean
characteristics in their manufacturing organizations. They also described the
development of the Virtual Group (VG) concept, which is the application of
virtual cells to functional layouts. VGs enable the appropriate application of
lean and agile concepts to different stages of production within a factory. The
identification of VGs is achieved through the use of a methodology called
Enhanced Production Flow Analysis (EPFA).

28

Shah and Ward (2003) examined the effects of three contextual

factors like plant size, plant age and unionization status on the likelihood of
implementing 22 manufacturing practices that are key facets of lean
production system. Further, they postulate four bundles of inter-related and
internally consistent practices: these are Just In Time, Total Quality
management,

Total

Preventive

Maintenance

and

Human

Resource

Management. Then they empirically validate their bundles and investigate

their effects on operational performance.
Aase et al (2004) confirmed that U-shaped assembly lines improve
labor productivity. Results indicated that labor productivity will improve
significantly under certain conditions when switching from a straight-line
layout to a U-shaped layout but not in all cases. The research also reveals
some limitations of such a layout change when factors such as the number of
tasks and cycle times are varied.
Cagliano et al (2004) explored the supply strategies of European
manufacturing firms with the third edition of the international manufacturing
strategy survey. Four clusters are identified on the basis of the supplier
selection criteria and integration mechanisms adopted. Two clusters are
similar to the lean and agile models, while the other two are more traditional
supply strategies. The strategies are then described in terms of contingent, and
structural factors and manufacturing performance. Lean and agile strategies
outperform the other clusters on many dimensions, while no significant
difference emerges between the two in terms of performance.
Galantucci et al (2004) proposed the implementation of hybrid
Fuzzy Logic-Genetic Algorithm (GA) methodology to plan the automatic
assembly and disassembly sequence of products. The GA-Fuzzy logic
approach is implemented onto two levels. The first level of hybridization
consists of the development of a Fuzzy controller for the parameters of an

29

assembly or disassembly planner based on GAs. The second level consists of

the identification of the optimal assembly or disassembly sequence by a fuzzy
function, in order to obtain a closer control of the technological knowledge of
the assembly/disassembly process. Two case studies were analysed in order to
test the efficiency of the Fuzzy-GA methodologies.
Grewal and Sarren (2004) developed a simple model to implement
the lean improvement initiative. Value Stream Mapping tool is considered as
the core of this model. Some factors such as lead time, waiting time, and
inventory are quantified to evaluate the effectiveness of implementation of
this model. Their work was an attempt to reduce and eliminate the non value
added time in a particular value stream.
Kodali and Sangwan (2004) made an attempt to demonstrate the
usefulness of Performance Value Analysis for the justification of World Class
Manufacturing Systems (WCMS) for Indian industries. From the result of the
model, it is evident that the WCMS is the best alternative for implementation
and to maintain competitive advantages.
Laosirihongthong and Dangayach (2005) presented findings of an
empirical survey on manufacturing strategies implementation in new
industrialized countries. Data were obtained from 68 and 54 automotive
manufacturing companies in India and Thailand with 21.7% and 21.8 %
response rates, respectively, and analyzed through the inferential statistics.
The results indicated that the focused competitive priorities of companies in
both countries are improving product and process related quality and on time
delivery. In addition, this study found that companies are trying to enhance
the competitive priorities by implementing one of two infrastructural
manufacturing strategies among Total Quality Management (TQM), Just In
Time (JIT) production, Statistical Process Control (SPC), and Material
Requirement Planning (MRP).

30

Morein (2005) has discussed the causes for the failures in

information systems and technology industry and suggested alternative
development approaches. These are generally termed as agile development
method. This approach in managing software development project is seen to
have roots in the lean manufacturing thinking and practice.
Agarwal et al (2006) presented a framework which encapsulates the
market sensitiveness, process integration, information driver and flexibility
measures of supply chain performance. The paper explored the relationship
among lead-time, cost, quality, and service level and the leanness and agility
of a case supply chain in fast moving consumer goods business. It concluded
with the justification of the framework, which analyses the effect of market
winning criteria and market qualifying criteria on the three types of supply
chains: lean, agile and leagile.
Houshmand and Jamshidnezhad (2006) presented an axiomatic
modeling of lean production systems design, using Process Variables (PV).
Here an attempt is made to introduce PVs in production system design. In a
production system, the authors interpret PVs as the tools, methods and
resources required for implementing a lean production system.
Karthick (2006) has proposed an integrated multi criteria supplier
selection process and use of PVA in the actual selection process. He also
developed a program in MATLAB to calculate the aggregated performance
measure for each supplier. Category analysis is also performed for certain
significant criteria to see how the alternatives perform with respect to a
significant criterion.
Narasimhan et al (2006) made an attempt to determine whether lean
and agile forms occur with any degree of regularity in manufacturing plants.
The results confirmed that the existence of homogeneous groups that

31

resemble lean and agile performing plants, and they identified important
differences pertaining to their constituent performance dimensions. The result
indicated that while the pursuit of agility might presume leanness, pursuit of
leanness might not presume agility.
Tseng et al (2006) investigated the effects of continuous
improvement and cleaner production on operational performance. A
conceptual model is developed and three research hypotheses are empirically
examined using structural equation modeling. The data were collected
through a survey of Taiwan electronic manufacturing firms. The result
indicated that cleaner production has a positive influence on operational
performance as well as on the continuous improvement.
Abdulmalek and Rajgopal (2007) described a case where lean
principles were adapted for the process sector for application at a large
integrated steel mill. Value Stream Mapping was the main tool used to
identify the opportunities for various lean techniques. They also described a
simulation model that was developed to contrast the before and after
scenarios in detail and in order to illustrate potential benefits such as
reduction in production lead time and work in process inventory.
Matsui (2007) focused on the requirements for Just In Time
production systems and the roles and consequences of JIT production for
manufacturing companies. The paper reported nine reliable and valid
measurement scales considering JIT production practices for 46 Japanese
manufacturing plants. Based on these measurement scales and a summarized
super scale, it is proved that JIT production system contribute to improving
competitive performance, and that efficient equipment layout has a strong
impact on the competitive position of the manufacturing plant.

32

Salomon et al (2007) presented a Multiple-criteria decision-making

(MCDM) modeling for the selection of equipments supplier in an automotive
plant located in the Sao Paulo State, Brazil. There were two new assembly
lines for which equipments must be purchased by the factory. The AHP was
applied with the same set of criteria for both lines. There were four potential
suppliers involved, but only one competing, simultaneously, in the two
selection processes.
Amer et al (2008) presented design for six sigma, which focuses on
customer requirement from the onset, as an effective methodology for
monitoring and controlling supply chain variables, optimizing supply chain
processes and meeting customer requirements. They developed a theoretical
transfer function for predicting the performance of the perfect order
incorporating fuzzy set theory provides a way of monitoring supply chain
performance.
Chandra and Grabis (2008) studied a single-stage variable leadtime inventory system with lead-time dependent procurement cost. Selection
of the lead-time value represents finding the trade-off between benefits of
lead-time reduction and increase in the procurement cost. A model for joint
optimization of inventory and procurement costs is developed. Numerical
studies are conducted to identify conditions under which lead-time reduction
is favorable compared to procuring at the lowest cost.
Cruz Machado and Tavares (2008) presented a methodology to
assess performance and to provide management decision support. A
management by value stream model was developed to access company
performance. It was implemented to support decision-making at an industrial
company. The idea behind the model is that products or services should
continually flow in the organization, as value streams. This work concluded
that the model helps in the implementation process of the organization

33

strategy, and also it works as an invaluable tool to act and to promote

communication at the several organization levels.
Gurumurthy and Kodali (2008) made an attempt to demonstrate the
application of a Multi Attribute Decision Making model, namely Performance
Value Analysis (PVA) to analyze the alternatives production system like
Traditional manufacturing, Computer Integrated Manufacturing, and Lean
Manufacturing among various performance measures. A detailed algorithm of
the PVA model is demonstrated using a hypothetical case situation, which
shows that Lean Manufacturing System is the best as it results in overall
improvement in the performance of the organization.
Herron and Hicks (2008) considered the process in terms of
Lillranks model of innovation transfer. They disseminated selected lean
manufacturing tools and techniques into companies in the North East of
England aimed to help companies to improve productivity through applying
lean manufacturing management practices and knowledge. The results
obtained from 15 companies show that the savings are eight times greater than
total cost. It has been found that the commitment of management and the
ability of the change agents are the key determinants of success.
Kattan and Bin Adi (2008) found that the ways to reduce the total
inventory cost while maintaining the target level of technical readiness. The
research consists of two phases of multi-criteria decision making on total
inventory cost and technical readiness. First phase is, to apply two
dimensional material classification techniques to the selected data. The
second phase is, to apply a deterministic inventory model to the result of the
material classification. A detailed analysis of the technical readiness and total
inventory cost is covered for the deterministic inventory model. Finally, a
comparison between the current inventory system and the proposed one

34

shows around 42% savings in the total inventory cost over a period of three
years.
Kaur and Mahanti (2008) determined a suitable decision making
method for selecting the best vendor. Essentially the vendor selection problem
is a multi criteria decision making problem involving tangible as well as
intangible criterion. Analytical Hierarchy Process can best handle these
criterions. ANP provides a holistic framework for selection of best Enterprise
Resource Planning (ERP) vendor alternative by using a dynamic multi
directional relationship among the decision attributes. The method adopted
here uses triangular fuzzy numbers for pair-wise comparison of attributes and
weights are calculated using entropy concept.
Khorramshahgol

and

Djavanshir

(2008)

proposed

new

methodology for calculating the proportionality constant of Taguchi's quality

loss function (QLF). To this end, the analytical hierarchy process is used to
estimate the value of the proportionality constant in QLF. It is argued that the
proposed methodology takes into account, the relative importance of various
quality characteristics and captures different levels of sensitivity along the
loss function.
Kull and Talluri (2008) proposed a combination of Analytic
Hierarchy Process and goal programming as a decision tool for supplier
selection in the presence of risk measures and product life cycle
considerations. The efficiency of the model is tested at a mid-sized, secondtier automotive supplier. They found that, the model provide a feasible and
meaningful method for determining strategic supplier allocations while
considering multiple dimensional issues.
Saaty (2008) described the Analytical Hierarchy Process (AHP) as
a theory of measurement through pairwise comparisons and relies on the

35

judgments of experts to derive priority scales. The comparisons are made

using a scale of absolute judgement that represents, how much one element
dominates another with respect to a given attributes. The judgment may be
consistent, and how to measure the inconsistency and improve the judgments,
when possible to obtain better consistency is a concern of AHP. The derived
priority scale is synthesized by multiplying them by the priority vector of their
parent nodes and adding for all such nodes. In this paper AHP is used to take
judgments to estimate the dominance of the consumption of drinks in the
USA.
Saurin and Ferreira (2008) presented an assessment of the impact of
lean production on working condition in a harvester assembly line of an
American plant in Brazil. As a frame work for analysis the data collected
were grouped into four constructs: i) work content, ii) work organization,
iii) continuous improvement and iv) health and safety. The result indicated
that workers considered their working conditions were fairly good and had
improved after the introduction of lean production. To some extent, this
positive view was due to the fact that there were many gaps between
standardized work and real work.
Senanayake and Veera Ragavan ( 2008) discussed an Automated
Storage and Retrieval system, which was designed such that the best storage
location for the products is determined by utilizing a fuzzy control system.
The design maintains the records of the products to be/already in store and the
storage/retrieval times along with the availability status of the storage
locations. They also discussed the maintenance of the above mentioned
records and the utilization of the concept of fuzzy logic in order to determine
the optimum storage location for the products.
Askin and Krishnan (2009) considered a multi product pull setting
where part types compete with each other for common production resources.

36

Here, it is important to consider factors such as lead time variability and to

include the corresponding queuing aspects into the model. Each workstation
is modeled as a GI/G/1 queue. Waiting times spent by parts at workstations
are approximated using a decomposition/recomposition algorithm. Conditions
under which multiple control points are optimal are investigated along with
the impact of product mix and utilization parameters on the number of control
points. Analytical model results are validated by simulation.
Rathje et al (2009) identified the major criteria and conditions that
led to either lean success or failure. They found the sources for failure, like
the lack of senior management commitment, lack of interest and low
acceptability of workers for changes. The sources of successes are employee
autonomy to make decisions, information transparency, etc.
Yakup et al (2009) applied a binary fuzzy goal programming
approach to an assembly line balancing problem. They proposed models for
balancing straight and U-shaped assembly lines with fuzzy goals.
Anthony Inman et al(2010) developed a structural model
incorporating agile manufacturing as the focal construct is theorized and
tested. The model included the primary components of JIT like JITpurchasing and JIT-production as antecedents and operational performance
and firm performance as consequences to agile manufacturing. Using data
collected from production and operations managers working for large U.S.
manufacturers, the model is assessed following a structural equation modeling
methodology. The results indicate that JIT-purchasing has a direct positive
relationship with agile manufacturing while the positive relationship between
JIT production and agile manufacturing is mediated by JIT purchasing.
Bashiri and Ramezani (2010) analysed multiple response problems
encompassing three stages: data gathering, model building and optimization.

37

They propose least significant difference criterion as agent of modeling stage

to trade off between responses, which guides the decision makers how to
change membership function, and the criteria of modeling fitness function.
Demeter and Matyusz (2010) focused on how companies can
improve their inventory turnover performance through the use of lean
practices. According to their main proposition, firms that widely apply lean
practices have higher inventory turnover than those that do not rely on LM.
However, there may be significant differences in inventory turnover even
among lean manufacturers depending on their contingencies. Therefore, they
also investigated how various contingency factors like production systems,
order types, and product types influence the inventory turnover of lean
manufacturers.
Eroglu and Hofer (2010) concluded that while firms increasingly
adopt lean inventory practices, there is limited evidence that inventory
leanness leads to improved firm performance. This study re-examined this
relationship with an attempt to overcome some shortcomings of previous
research. To that end, a theory-based measure of inventory leanness, which
takes into account industry specific inventory management characteristics, is
proposed. The analysis of a large panel data set of U.S. manufacturing
companies reveals that the significance and shape of the inventory
performance relationship varies substantially across industries.
When a production facility is designed, there are various
parameters affecting the number of machines such as production capacity and
reliability. Gharakhani et al (2010) presented a new mathematical model with
two objectives. The primary objective function is considered to be the
production capacity and the secondary objective function is total reliability.
The resultant model is formulated using recent advances in robust

38

optimization and the solution procedure is analyzed with some numerical

examples.
Kisperska-Moron and De Haan (2010) analysed that mass, lean and
agile production philosophies, although widely discussed, still cause
considerable confusion both among academics and in practice. The
characterizations of lean (what, when needed but perfect) and agile (first, fast
and best) show the paradigmatic differences between the two.
Mackelprang and Nair (2010) examined the relationship between
JIT manufacturing practices and performance outcomes by means of metaanalysis of correlations approach. They highlighted the JIT practices that have
the greatest impact on individual performance outcomes and emphasizes the
role of moderating factors in the relationship between JIT practices and
performance.
Makui et al (2010) presented a new methodology for identifying
and analysing risks of projects concurrently by applying fuzzy multi-attribute
group decision making approach. Multi-attribute group decision making, the
essence of identification and analysis of project risks, lets one considers
multi-attribute problems for the Decision Maker, sets priorities for each
decision factor, and analysis ranking for all alternatives. The paper included a
new procedure for classifying potential risks which it is named Potential Risk
Breakdown Structure based on project Work Breakdown Structure.
Mukesh Kumar and Hari Sharan (2010) has used AHP as a tool for
selecting career in a manufacturing environment at a Indian industry.
Najmi and Makui (2010) used a new methodology which is a
combination of AHP and DEMATEL to rank various parameters affecting the
performance of the supply chain. The DEMATEL is used for understanding

39

the relationship between comparison metrics and AHP is used for the
integration to provide a value for the overall performance.
Neumann and Medbo (2010) presented a design stage comparison
of an existing big box material supply strategy common in Swedish
manufacturing to a proposed narrow bin approach. Performance times,
walking distances, layout space requirements were evaluated for six
workstations using big boxes of parts along the line. Biomechanical loading
on spine and shoulder was estimated for one of the workstations.
Comparisons were made to simulated layouts with the narrow bin approach
which consumes reductions in rack lengths (81%), Material Areas (61%),
Walking Distances (61%), Indirect Work (24%), and Cycle times (8%). It is
concluded that the narrow bin supply strategy has potential to both improve
productivity and reduce risk characteristics of the system.
Petersen and Wohlin (2010) proposed a novel approach to bring
together the quality improvement paradigm and lean software development
practices, the approach being called Software Process Improvement through
the Lean Measurement (SPI-LEAM) Method. The method allows to assess
the performance of the development process and take continuous actions to
arrive at a more lean software process over time. The method is under
implementation in industry and an initial evaluation of the method has been
performed.
Pool et al (2010) considered how the principles of flow and pull
production suggesting a regular, demand-driven product flow may be
implemented for the semi- process industry by introducing cyclic schedule.
The case study is extensively described to be able to judge how the context of
the changes and the intervention process contribute to the results of the
intervention.

40

Pun et al (2010) worked towards the development of generic selfassessment model for small and medium sized enterprises to determine their
performance in new product development (NPD) practices. It reviews a list of
sixteen elements under five decision areas as advocated in literature that
affect NPD practices. Incorporated the findings of focus group interviews
with industry practitioners and experts, a self-assessment model of NPD
performance is devised using the Analytical Hierarchy Process (AHP)
approach. The conduct of the exploratory study is presented to illustrate how
the decision/performance criteria be prioritized and the scoring guidelines be
established.
Raut et al (2010) integrated Analytic Hierarchy Process (AHP),
Fuzzy AHP and Quality Function Deployment (QFD)-Fuzzy to determine the
best casting industry supplier for automobile spare-parts. AHP is used to
obtain the relative importance of the evaluation criteria. The QFD approach
typical to supplier selection in the house of quality (HOQ) is used in
determining the importance of weights for the customer requirements. The
proposed method is used in the selection of suppliers using relative
benchmarking as well as absolute bench marking which offers a tangible
means by which to evaluate suppliers
Ravanshadnia et al (2010) made an attempt to develop a step by
step decision making model for engineering partner selection process. The
problem of selecting appropriate engineering company is a multi-criteria
decision that has many uncertainties in its nature. The model takes into
account consultants relationships with project stakeholders, its proposed
commission fee, and its managerial and technical capabilities. The paper
describes a fuzzy analytical hierarchy process (FAHP) model which
constitutes a quantitative estimation methodology that can be used to select
engineering partner for construction companies. A numerical case with a

41

sensitivity analysis is presented to demonstrate the application of the model

in real cases.
Roy and Debdip (2010) suggested a generic approach for linking
the balancing of the line of production in the conversion area with the
customers rate of demand in the market and for configuring the related stock
chambers. They mainly aimed to translate the underlying problem in the form
of a mixed nonlinear programming problem and design the optimum supply
chain. A numerical example has been added to demonstrate the suitability of
the approach.
Sarkar et al (2010) described a production policy (resumption and
non-resumption) in order to find out an optimal safety stock, production lot
size and reliability parameters. A production-inventory model with stochastic
machine breakdown and its corrective and regular repairs with safety stock
has been developed incorporating variable reliability parameters. The KuhnTucker method is used to obtain an optimal solution for reliability parameters,
production lot size and safety stock. Numerical examples with sensitivity
analysis of key parameters are given to illustrate the proposed model.
Song et al (2010) developed an integrated production inventory
model assuming the replenishment lead time is dependent on both lot size of
the buyer and production rate of the vendor. The decision-making interaction
of lead time between a buyer and a vendor in the integrated inventory model
is analyzed. In terms of the model, a solution procedure has been developed
to obtain the efficient ordering strategy for a manufacturing company. The
numerical examples are employed to validate the solution procedure.
Tuzkaya et al (2010) proposed an integrated fuzzy multi-criteria
decision making methodology for material handling equipment selection
problem (MHESP). The proposed approach is utilized from fuzzy sets,

42

Analytic Network Process (ANP) and Preference Ranking Organization

Method for Enrichment Evaluations approaches. The methodology is applied
for a manufacturing company to prove its effectiveness.
Venkatachalapathi and Ramakrishna Rao (2010) made an attempt
to establish a quantitative relationship between output indicators such as
Automated Guided Vehicle (AGV) utilization and input variables like part
arrival rate, processing times at machining centers and various decision rules
employed at AGV and Resources in a dynamic dedicated Flexible
Manufacturing System (FMS). The objective is to determine the nature of the
functional relationship and the variables affecting the output performance
measures of the FMS model and decision variables.
Vijaya Kumar

et al (2010)

applied the analytical hierarchy

process (AHP) to Factors affecting ERP implementation. The model is based

on the analysis of quality issues that affect a implementation process. To
understand some criticalities of the model, a survey based on Analytic
Hierarchy Process was carried out.
Vliegen et al (2010) described an exploratory study of aspects that
should be taken into consideration when optimizing tool kits, i.e. cases
containing sets of tools that are used by service engineers for corrective
maintenance. The study was carried out among service engineers of an
Original Equipment Manufacturer (OEM) that produces lithography
equipment that is critical in the production process. The results show a
preference for tool kits, both in general and for all phases of the maintenance
process. Many aspects appear to play a significant role in this preference, such
as packing, convenience, characteristics of the repair action, uncertainty, and
time.

43

2.3

CONCLUSIONS BASED ON THE LITERATURE SURVEY

The following conclusions have been drawn based on the studies

available in the open literature on kitting assembly system.

1.

Some literature deals with kitting for a parallel flow long

cycle time assembly system (Brynzor and Johansson 1995,
Medbo 2003)

2.

Some literature focuses kitting in light guided semi automated

assembly system (Gunther et al 1996)

3.

Literature dealing with automation of kitting using robot to

perform the parts kitting operation (Tamaki et al 1991) and

4.

Literature dealing on kitting for a fitness cycle assembly line

(Bozer and McGinnis 1992).

2.4

MOTIVATION
Based on the available literature, it is seen that works related to

multi product single conveyor assembly environment are few. A majority of

the studies on kitting focuses on electronics industries. The information
available is not adequate for designing a lean kitting system for an automotive
assembly line with multi product single conveyor assembly environment.
Hence, the present work focuses on developing and evaluating a lean kitting
assembly model for a multi product single conveyor assembly line of a two
wheeler engine assembly line.
2.5

OBJECTIVES AND SCOPE

The objectives of the present study are as follows:
1.

To select a suitable assembly method among Line Side (LS),

44

Lean Kitting (LK) and Kanban Assembly (KA) employing

Multi Criteria Decision Making (MCDM) models like
Performance Value Analysis (PVA) and Analytical Hierarchy
Process (AHP) for an automotive industry.
2.

To develop a Fuzzy based model for analyzing the suitability

of LK.

3.

To develop a mathematical model for demonstrating the

application of LK in an automotive industry.

4.

To quantify the advantages of LK over LS assembly.

5.

To develop a model and demonstrate its application for

finding an optimal batch size with a fixed changeover time.

2.6

PROBLEM FORMULATION
The problems associated with the final engine assembly line which

uses lineside assembly method of the case industry are given below.
2.6.1

Problems Associated with Line Side Assembly Method

In this work, the case industry produces two different types of

engines on a single conveyor assembly line. This line is a Multi Product

Single Conveyor (MPSC) assembly line which is a special type of assembly
line in which different products are assembled in a single assembly line. The
following are the problems associated with the line side assembly method of a
MPSC assembly line.
i)

More floor space is consumed.

ii)

More operator walking time for retrieving components from

the storage area is required.

45

iii) Changeover from one product to other product is very difficult

since changeover requires some of the components to be
replaced completely with components of new specifications.
This poses difficulty to perform repeatedly.

2.7

iv)

Skilled and experienced labour is required for assembly work

v)

Work in process inventory is very high and

vi)

Shop floor control is difficult.

SUMMARY
In this chapter, the various literature related to lean manufacturing,

kitting assembly, MCDM models like PVA, AHP and fuzzy logic are
discussed. Conclusions based on the literature survey have been done.
Motivation, objectives and scope of the present study have been developed. The
problems associated with the line side assembly method are also discussed.