11 th North-West QualTech Awards Page 1 11 th North-West QualTech Awards For Excellence in Quality Project Title : To improve productivity of CEPS assembly line Organization : , Executive summary Since Lean Manufacturing System (LMS) was introduced in the Indian industries, people have been looking for an effective “tool kit” to lead this program in own business and organization. Many of the organizations started applying the principle of Lean to eliminate wastages and improve efficiency of manufacturing organization. Though the concept of MUDA, MURI, MURA, 7QC tools , Design of Experiments & QC problem solving approach is known to Indian manufacturing industries, but use of these strong tools & techniques for improving production system has not yet gained popularity. With the introduction of LMS, XXXXXXXXXX has also introduced Lean Production as XXXXXXXXXXXXXX in its all plants. As we know that customer wish to pays only for value added activities and rest are the wastages. With this philosophy, business will be depend only on the value creation for the customer. LMS provide such tool which help organization to eliminate wastages and create “Lean Enterprises.” To remain in the business and be competitive in future every organization has to follow this proven philosophy of “Lean”. Our team worked on this philosophy as were facing a situation of “how to meet customer demand without making investment on buying new machines & without investment for space requirement within short span of time” as volumes increased suddenly. Team worked very sincerely under the guidance & facilitation of expert seniors who have wide experience of lean manufacturing. With the cooperation & help of the other departments like Kaizen shop, Maintenance deptt. Manufacturing Engineering deptt. etc. team succeeded to increases the production rate from XX no/hr to XX no/hr and standardized it. By achieving this we were meet the customer demand without failure. Team members used extensive use of tools like- Videos, Time and motion study, XXX chart, Kaizens etc. Team Leader Author 1 Name : XXXXXXXXXX Designation : JM-3 Tel : 0000000000 Email : [email protected]
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11th North-West QualTech Awards For Excellence in Quality · wastages and improve efficiency of manufacturing organization. Though the concept of MUDA, MURI, MURA, 7QC tools , Design
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11thNorth-West QualTech Awards Page 1
11th North-West QualTech AwardsFor Excellence in Quality
Project Title : To improve productivity of CEPS assembly line
Organization : ,
Executive summary
Since Lean Manufacturing System (LMS) was introduced in the Indian industries, peoplehave been looking for an effective “tool kit” to lead this program in own business andorganization. Many of the organizations started applying the principle of Lean to eliminatewastages and improve efficiency of manufacturing organization. Though the concept ofMUDA, MURI, MURA, 7QC tools , Design of Experiments & QC problem solving approach isknown to Indian manufacturing industries, but use of these strong tools & techniques forimproving production system has not yet gained popularity. With the introduction of LMS,XXXXXXXXXX has also introduced Lean Production as XXXXXXXXXXXXXX in its all plants.As we know that customer wish to pays only for value added activities and rest are thewastages. With this philosophy, business will be depend only on the value creation for thecustomer. LMS provide such tool which help organization to eliminate wastages and create“Lean Enterprises.” To remain in the business and be competitive in future everyorganization has to follow this proven philosophy of “Lean”.Our team worked on this philosophy as were facing a situation of “how to meet customerdemand without making investment on buying new machines & without investment for spacerequirement within short span of time” as volumes increased suddenly.Team worked very sincerely under the guidance & facilitation of expert seniors who havewide experience of lean manufacturing. With the cooperation & help of the otherdepartments like Kaizen shop, Maintenance deptt. Manufacturing Engineering deptt. etc.team succeeded to increases the production rate from XX no/hr to XX no/hr andstandardized it. By achieving this we were meet the customer demand without failure. Teammembers used extensive use of tools like- Videos, Time and motion study, XXX chart,Kaizens etc.
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For each response, please mention the process and the tools used, whereverapplicable.
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Organization’s Profile
Response: Response:(Approx. 100 words.)
OVERVIEW OF THE PROJECT
Response:1) Need of the Project: - We are the single source supplier of XXXX assembly to XXX for
one of their top selling model (XXX). Currently the demand is being cater through 2 shiftsper day with 90% of our capacity. Due to sudden increase in demand and increased futureprojections since April 2015 we have to run production in 3 shifts. This is increasing ourmanufacturing cost (power Cost + Manpower cost).
2) The Solution: - In order to avoid increasing of manufacturing cost & new investment, weare left with only solution to increase line capacity by reducing Neck Machine Cycle Time(NMCT).
3) Expected Results:- By reducing NMCT up to 11%, we expect to improve our line capacityby 9% to fulfill increase demand of customer in only 2 shifts.
1. IDENTIFYING THE PROJECT (Annexure-1,2,3,4,5,6,7)
1.1 Identifying the problem
a. What was the process used to identify and prioritize this problem?(Internal Rejection analysis, Audit reports, customer feedback, management reviews,
Business plans, Benchmarking with competition)
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Response:In F15, XXX assy. line capacity @ XX% efficiency on 2 shift basis was XXXXXX/year andactual customer demand was XXXXXX. But in F16 there was a sudden increase in customerdemand & future projections of F17 also increased further. In F16 customer demand jumpedto XXXXXXX/year & projections of F17 reflected as XXXXXXX/year which are more than theproduction capacity of XXX assy. line. So to meet the customer demand since April XX wewere running extra 3rd shift which was increasing power cost & manpower cost and affectingour manufacturing cost. (Annexure -1)
b. Why is it important to solve the problem now?
Response: Due to running 3rd shift, our manufacturing cost was increasing beyond targetwhich affecting our top line.(Annexure – 2)
c. How does the problem align with strategic goals of the organization?
Response: In our Business Strategy Increase Productivity is a key factor to Achieve HighProfitability (Annexure-3). As per our company and plant level KMI (Key ManagementIndices) growth in EBIDTA (Earnings Before Interest Tax Depreciation and Amortization) is animportant parameter which is directly affected by Power cost & Employee cost (Annexure-4).As per our policy 3rd shift is always kept spare to meet fluctuation in customer demand but inour case we were running continuously with the spare shift which was directly a factor toimposing a negative impact on the growth of EBITDA. Hence this problem is directly alignedwith strategic goals of the organization.
d. Problem/Opportunity Statement
Response:Our XXX assy. line customer demand increased suddenly which is more than our lineproduction capacity. Due to this we need to run line in 3rd shift which is against our plantstandard of running lines in 2 shifts. (Annexure-5)
e. Goal Statement
Response:To reduce line bottleneck cycle time (NMCT) from XX sec. to XX sec. to meet the customerrequirement in two shifts till XXth Nov-XX.(Annexure-6a, 6b)
f. High Level Process Flow Diagram
Response: Process flow diagram of XXX assembly is shown as attached in Annexure -7.
2. Data Collection (Annexure-1,8,6a,9,10,11,12,13,14,15,16)
2.1. Description of the data collection system used to measure current performance
Data collection plan
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Response: Following data were collected & analyzed.1. Customer Demand (Annexure-1)2. Line Layout (Annexure-8)3. Line cycle time at current efficiency. (Annexure -6(a))4. Line Organization Efficiency (LOE) (Annexure-9)5. Out of Balance Index (OBI) (Annexure -9)6. Processes step by step cycle time. (Annexure-10,11,12,13,14)7. NVA –Non value added activities8. VA -Value added activities
2.2. Data Analysis (Graphs, Pareto Chart, Histogram etc)
Response:1. Brainstorming2. Group discussion3. YAMAZUMI chart- Related to Manual cycle time balancing study. (Annexure-15)4.Time study (Annexure-10,11,12,13,14)5. Motion study (Annexure-16)
2.3. Quantification of baseline performance (Metrics depending upon project type (quality, Cost,delivery): Percentage, PPM, Defects per unit, Process Capability etc. Metrics for projectsrelated to delivery/cycle time; Process Map, Cycle time study, Value Stream Mapping,Overall equipment effectiveness)
Response:1. Current NMCT – XXsec.2. Current Production per Hour (PPH) – XXNOS.3. Line organization efficiency (LOE) – XX%4. Out of balance index (OBI) - XX%5. Line efficiency-XX%
3. DIAGNOSING THE CAUSES (Annexure-15,10,11,12,13,14,16)
3.1. Process for identification and prioritization of high level causes
a. Potential Causes: Fishbone diagram
Response: In our case we used the following tools to identify the potential causes.1. YAMAZUMI CHART (Annexure-15 )2. Process Sequence & Cycle time study of operators. (Annexure-10, 11, 12, 13, 14)3. Group Discussion.4. Motion Study. (Annexure-16)
b. Prioritization: Cause and effect matrix, or FMEA, or any other prioritization tool
Response: With the help of YAMAZUMI chart we could visualized & prioritized the work whichwere out of Balance Index. (Annexure-15)
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3.2. Root cause analysis methodology (Why-Why analysis, concentration charts, or any othermethod/s)
Response:1. Time study of manual work.2. Group discussion to identified the activities which can eliminate, reduce and overlap with
other activities. (Annexure-10,11,12,13,14)
3.3. Process for testing of theories/verification of root causes (GembaInvestigations/Observations, Hypothesis testing such as t- test, Chi-Square, ANOVA,regression or any other experimentation method/s)
Response:1. Gemba investigation and observations.2. Data collection
4. REMEDYING THE CAUSES (Annexure-17,18,19,20a,20b,21,10,11,12,13,14)
4.1. Process for identification and prioritization of possible solutions (Brainstorming, or creativitytools, Design of Experiment, Benchmarking or any other method/s)
Response:1. Identify & eliminating / reducing the Non value added activities through Kaizens
implementations. (Annexure-17,18,19,20a, 20b,21)
4.2. Process for choosing the best solution/s (Cost benefit analysis, evaluation matrix, or anyother method/s)
Response:1. Group discussion2. Matrix has made for judgment that which activity can eliminate, reduce or overlap with
other activities. (Annexure -10,11,12,13,14)
4.3. Process for validating that the solutions work
Response:Whatever the activities identified through judgment matrix , we did the actual demo & validatethat activities on Assy. Line.
5. IMPLEMENTING THE SOLUTION (Annexure-22)
5.1. Process for implementing the finalized solutions (Implementation plan, Project Managementtechniques or any other method)
Response:1. Activity Plan, (Annexure-22)2. Gemba kaizen done by CFT to achieve cycle time lower than takt time.3. Program in PLC modified to incorporate process sequence.
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5.2. How did you tackle resistance to change (Confidence building workshops,awareness/training or any other method)
Response:1. Line associates were involved in the improvement journey.2. They were given Group Kaizen Activity Trainings & 7 QC tools training.3. Trainings were given about YAMAZUMI chart & basics of ergonomics.4. Regular meetings of team members with facilitator.5. Full cooperation from other department like Maintenance & Kaizen departments.6. Equal hand holdings by management during the whole improvement journey.7. Associates made all handmade chart, pictures, sketches etc by themselves.8. Appreciation & awards to line associates & team after completion of project.
6. BENEFITS (Annexure-23)
6.1. Tangible
Response:1. Bottle Neck Machine Cycle Time (NMCT) is reduce from XXsec. to XXsec.2. Production per hour (PPH) increase from XX to XX nos.3. Eliminate the X shift.4. Cost is saved X% (X lac/annum).Annexure-23
6.2. Running expenses/investment, if any (#)
Response:These all improvements were done by the in-house facilities (Kaizen Department). Investmentis done less than approx. Rs. XXXXX (XXXXX Thousands only).
6.3. Intangible
Response:1. Understanding the concept & application of various tools.2. Strengthen team work.3. Confidence increase among people.4. Encouragement to other teams.
7. HOLDING AND SUSTAINING THE IMPROVEMENTS (Annexure-24)
7.1. Processes to ensure that the gains from the implemented improvements are sustainable(Control Plans, Control Charts, SOPs, Audits, or any other method)
Response:1. Standardized the work by updating Work standard quality control sheet (WSQC).2. Standardized the work element sheet (WES).3. Update the XX check sheet.4. Update the XXX XXXX check sheet.(Annexure -24)
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7.2. Plans for replicating gains in similar processes across other locations throughout theorganization
Response:Next project taken on XXX line to balance the manual work as attached. ( Annexure -25)
8. ANNEXURE LIST
Response:Annexure 1 :- Customer demand Yearly projectionAnnexure 2 :- Manufacturing costAnnexure 3 :- Business StrategyAnnexure 4 :- Plant XXXAnnexure 5 :- Demand vs. CapacityAnnexure 6a,6b :- Setting the target (6a),(6b)Annexure 7 :- High level of process flow diagram of CEPS Assy.Annexure 8 :- Line LayoutAnnexure 9:- Line Organization Efficiency, Out of Balance IndexAnnexure10 :- Step by step cycle timeAnnexure11 :- Step by step cycle timeAnnexure12:- Step by XXXXX timeAnnexure13:- Step by step cycle timeAnnexure14:- Step by step cycle timeAnnexure15:- Yamazumi chartAnnexure16:- Motion studyAnnexure17:- Implementing the solutionAnnexure18:- Implementing the solutionAnnexure19:- Implementing the solutionAnnexure20a,20b:- Implementing the solution(20a),(20b)Annexure21:- Implementing the solutionAnnexure22:- Activity planAnnexure23:- BenefitsAnnexure24:- Holding & sustaining the improvementsAnnexure25:- Future plan
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Annexure-1 : Customer Demand Yearly projection
Customer Demand Yearly ProjectionsNumbers
908070605040302010
CapacityXXXXX @XXX%
XXX
F-15 (ActualDemand)
XX % increasefrom F15 to F17.
XXX
F-16 (ProjectedDemand)
XXX
F-17 (ProjectedDemand)
Annexure-2 : Manufacturing Cost
Rupees Manufacturing Cost1101009080706050403020
10
XXXXX
Saving XXXX(XXX%).
XXXXXX
F-15 F-16 (After Project completion)
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Annexure-3: Business Strategy
Achieving highprofitability.
An organization ofenergized & involvedemployees.
BusinessStrategy
Supplying to majorAutomotive OEMs inIndia.
Overseas export ofthis plant products.
An organization ofenergized &involved employees.
Develop futureleaders throughtrainings & skills.
Achieving highprofitability.
Reduce/Eliminate Losses.
Supplying to majorAutomotive OEMsin India.
CompetitivePrice.
Overseas export ofthis plant
BrandingProducts.
Drive passion byengaging themin theimprovement
Boost motivationby recognition &rewards.
IncreaseProductivity
Develop newproduct lines.
Win customertrust &confidence.
Cutting edgetechnology.
Associatedpartnership withOEMs.
Concurrentdevelopment ofsuppliers.
Internationallycompetitiveinnovation.
Identify NicheMarkets.
DevelopingChannelPartners.
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Annexure-4 : Plant XXX
Annexure-5: Demand Vs. Capacity
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Annexure-6: Setting the Target (6a)
Cycle Time Requirement at XX% EfficiencySeconds46
XX45
44
43XX
42XX
41
40F-15 (At present) F-16 (Requirement @
2 shifts)F-17 (Requirement @
2 shifts)
Annexure-6: Setting the Target (6b)
Seconds Target Setting of NMCT at XX% efficiency46
XX45
44
43
42
41XX
40
39
38
37Current NMCT
XXXXTarget NMCT15th XXX
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Annexure-7: High Level Process Flow Diagram of CEPS AssemblyConveyor