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Lean Manufacturing Process Implementation and Their Case Study

Article in SSRN Electronic Journal · May 2010

DOI: 10.2139/ssrn.1635731

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 LEAN MANUFACTURING PROCESS IMPLEMENTATION AND
THEIR CASE STUDY
Harshit Srivastava*, Rohit Sharma*

* ME Research Scholar, PEC University of Technology, Chandigarh

Abstract
In this paper a framework is created by a brief exposure to lean manufacturing process and its implementation on
some companies chosen as case study in this paper. These companies have main focus on maximizing profit even in
their limited resources and inventories. They have to do so by not neglecting the quality according to World Class
Manufacturing (WCM) standards. To do so they adopted strategies and philosophy of lean manufacturing concept.

Here we are covering up with the case study of a company and its sister concerns that were initially lagging in
proper technology utilization. But after they had adopted Lean manufacturing Process, they had overcome most of the
hindrances they were facing on the business front. With the use of Lean concept they were able to remove the
bottleneck in their manufacturing process and were able to achieve increase in overall productivity and other
parameters which maximize their monetary gain. Although to achieve it they had worked for years but by the
continuous improvement they have finally achieved their goal of overall success.

Key words: Lean Manufacturing Process, World Class Manufacturing (WCM), Manufacturing Waste.

1. Introduction  Make-to-order
 Streamlined flow
This paper will give us the knowledge about :  Small lot sizes
 Families of parts
• World Class Manufacturing (WCM)  Doing it right the first time
• LEAN Manufacturing  Cellular manufacturing
 Total preventive maintenance
• Manufacturing Wastages  Quick changeover
 Zero Defects
It also includes a Case Study of Oilgear Towler  Just-in-time
Polyhydron Ltd. (OTPL).. The detail of the method  Variability reduction
adopted by the company to implement Lean Concept is  High employee involvement
thoroughly given as well as comparative study of its  Cross functional teams
previous and current situation is given.  Multi-skilled employees
 Visual signalling
2. Literature Survey  Statistical process control
2.1. World Class Manufacturing Companies engaging in World Class Manufacturing
strategies focus on improving operations, strive to
World Class Manufacturing is a different set of eliminate waste and create lean organizations. This
concepts, principles, policies and techniques often results in higher productivity. But these
companies also focus on speed of total throughput
for managing and operating a manufacturing company. from order capture through delivery setting new
It is driven by the results achieved by the Japanese standards for delivery without the heavy dependence
manufacturing resurgence following World War II, on inventory. Sequential methods of performing work
and adapts many of the ideas used by the Japanese in are being replaced with concurrent methods to
automotive, electronics and steel companies to gain a compress time, and functional and hierarchical
competitive edge. It primarily focuses on continual divisions of duties are being replaced by team-driven
improvement in quality, cost, lead time, flexibility and activities.
customer service. [1]
2.2. Lean Manufacturing
World Class Manufacturing is a process-driven
Much as mass production was the production system
approach where implementations usually involve the
of the 20th century, lean manufacturing, which focuses
following philosophies and techniques:
on the elimination of waste in the production process,
has been heralded as the production system of the 21st basics of lean manufacturing employ continuous
century. Although the Japanese automaker Toyota improvement processes to focus on the elimination of
pioneered the concept, the term lean manufacturing waste or non-value added steps within an organization.
itself was coined in the early 1990s by three The challenge to organizations utilizing lean
researchers from the Massachusetts Institute of manufacturing is to create a culture that will create and
Technology. sustain long-term commitment from top management
through the entire workforce.”[3]
The National Institute of Standards and Technology
(NIST) Manufacturing Extension
Partnership‟s Lean Network offers the following 2.3. Eight Types of Manufacturing Waste Targeted
definition of lean manufacturing: by Lean Methods
“A systematic approach to identifying and eliminating
waste through continuous improvement, flowing the Lean methods typically target eight types of waste.
product at the pull of the customer in pursuit of These waste types are listed in Table 1. It is interesting
perfection.”[2] to note that the “wastes” typically targeted by
environmental management agencies, such as non-
In other simple words we may Define Lean product output and raw material wastes, are not
Manufacturing Process as, “Lean manufacturing is a explicitly included in the list of manufacturing wastes
performance-based process used in manufacturing that lean practitioners routinely target. [4]
organizations to increase competitive advantage. The

2.4. Methods Organizations Are Using to

Implement Lean

There are numerous methods and tools that While most of these lean methods are interrelated and
organizations use to implement lean production can occur concurrently, their implementation is often
systems. Eight core lean methods are described briefly sequenced in the order they are presented above. Most
below. The methods include: organizations begin by implementing lean techniques
1. Kaizen Rapid Improvement Process in a particular production area or at a “pilot” facility,
2. 5-S and then expand use of the methods over time
3. Total Productive Maintenance (TPM) .Companies typically tailor these methods to address
4.Cellular Manufacturing / One-piece Flow Production their own unique needs and circumstances, although
Systems the methods generally remain similar. In doing so, they
5. Just-in-time Production / Kanban may develop their own terminology around the various
6. Six Sigma methods.[5]
7. Pre-Production Planning (3P)
8. Lean Enterprise Supplier Networks
2.5. Why do organizations want to use Lean  Senior leaders ensure that lean manufacturing
Manufacturing techniques? [6] techniques are consistent with the
organization‟s long-term vision.
To significantly improve overall productivity  Management assesses the organization‟s
To increase market share readiness to make the transition to lean
To improve speed-to-market with new products manufacturing.
To reduce manufacturing and engineering labour  Upper management defines the baseline
costs measures of success.
To eliminate non-value-added operations and  The organization defines a timetable
processes consisting of communication, objectives, and
scope of implementation.
Lean manufacturing techniques focus on:  The vision of the redesigned organization
strongly supports the linkage of business
Equipment reliability strategy to cultural strategy.
Balanced or level production  The vision of the redesign includes the
Just-in-time material control techniques alignment of the organization‟s
Stop-the-line to correct the problem and in-station communication, accountability, skills,
process control processes, and systems.
Continuous improvement processes
Statistical Process Control techniques for quality Six Months to Year Two:
consistency Creating the New Organization
Developing human systems to support the
technical processes  Redesign the organization to use lean
manufacturing techniques.
How do you sustain lean manufacturing  Implement training and development processes
techniques? to assist the transition.
Create a solid business case  Help leaders and employees make the
Align systems and processes transition to their new roles.
Share the vision
Years Three through Four:
Empower the workforce
Aligning the Systems
Ensure the use of proper measurement systems
 Continuous improvement processes are driven
from bottom-up versus top-down.
Roadblocks to implementing lean
 All organizational support systems are in
manufacturing:
alignment.
Complacency; no reason to change
 Ongoing measurement and process monitoring
Using lean manufacturing to facilitate downsizing
systems are ingrained in the new culture.
efforts
 The bottom line is meeting the favourable
Role clarity issues from senior management
 Expectations identified in the business case
Opposition from middle management
from the first six months.
Poorly defined measurement systems
Short-term versus long-term thinking Year Five:
Inadequate union involvement Completing the Transformation
Lack of commitment and ability to “just-do-it”  The transformation to Lean Manufacturing
 Techniques is completed.
2.6. Implementation[3]  Integration of Lean Manufacturing Techniques
with suppliers begins.
The First Six Months:
 Ongoing continuous improvement and
Building Organizational Awareness
organizational development is a way of life.
 Senior leaders clarify the business case for
using lean manufacturing techniques.
 Figure 1. Time Frame for Implementing Lean Manufacturing

3. Case Study
In this paper a case study is discussed of a company of  Directional Control Valves,
my teacher‟s earlier company. Manufacturing
strategies were adopted for the betterment.  Solenoid Valves,

3.1. Company Introduction  Pressure Controls,

 Company Name: Oilgear Towler Polyhydron  Manifolds, Covers, Logic Cartridges,

Ltd, (OTPL)
 Pressure Switches, Check Valves
RS-680/2 Udambag, Belgaum
3.3. Strategies Followed by OTPL & its
Head Quarters: 51st Street, Milwaukee,
sister concerns
Wisconsin, USA.
 At OTPL, the company manufactures
 Sister Concerns: Hydraulic Actuators, Presses and systems; It is
in U.S. Collaboration since past 18 years.
1.) Polyhydron Pvt. Ltd.
 It follows a mix of American and Japanese
2.) Hyloc Hydrotechnic Pvt Ltd. systems.
Website: www. Polyhydron.com
 It is certified ISO-9000-2000 Company.
www.oilgear.co.in
 Waste Reduction at all stages including office
3.2. Products Manufactured and paper wastes.

 Hydraulic Radial Piston Pumps,  The workers identify wastes and process
improvements and these are systematically
 Mobile Hydraulic Valves,
 documented and presented in Monthly  The Signaling or KAN-BAN system is fully
MRM‟s. visualized within the company.

 The management had a reward policy for best  There are work-stations, which are fully self-
suggestions and improvements by workers. sufficient for entire- assembly and testing of
Valves.
 Training classes are regularly taken for
workers in Quality, Maintenance, Process-  The management is a unique Ethical one, also
planning & improvements. known as „Temple of ETHICS‟.

 Vendors are trained and they are fully  The company has a meditation room and
responsible for quality. gymnasium for stress relieving.

 The company used shop operating standards  The M.D believes spiritual development
and customized software‟s for PPC and MIS. should take place along with work. (Company
has in-house a temple of Swami Vivekananda
 At Polyhydron, the company manufactures all in which inspiring books, CD‟s on motivation
types of Hydraulic Valves and Radial piston and strength are available. Weekly meditation
pumps. camps and Worships is organized by the
SWAMI‟s of Ramakrishna Mission Ashram.
 In contrast to the earlier system, the company
followed totally Japanese Systems.  The philosophy is to develop overall
HUMAN‟s by inculcating in them Spirituality
 JIT is implemented, wherein the vendors are and developing KARAMAYOGI‟S through
fully developed and inventory is maintained at regular „KARMA‟ or WORK.
their end.

 Depending on the orders, the vendors are

given a delivery plan and the components
arrive just at the required time.

 Wastes are reduced at all stages, In office

order bookings are all thru e-mails.
3.4. Results Achieved

 The group was started in 1975 by name Thus by adopting Lean Manufacturing Concept by a
„Hyloc‟, manufacturing tube fittings by 3 company may result in a lot profit to it as it will reduce
entrepreneurs, with a very low initial its wastes and even reduce the inventory size which
will leads to more monetary gain to it.
investment.

 Today it has 3 major units along with 6

plants. One of them is an U.S.
References
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