Improving Productivity by Lean


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This is a case study regarding study on production problems in apparel industry and to improve productivity by Lean manufacturing

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Improving Productivity by Lean

  2. 2. CONTENT <ul><li>INTRODUCTION </li></ul><ul><li>LITERATURE REVIEW </li></ul><ul><li>METHODOLOGY </li></ul><ul><li>RESULT & DISCUSSION </li></ul><ul><li>CONCLUSION </li></ul><ul><li>BIBILIOGRAPHY </li></ul>
  3. 3. 1.INTRODUCTION <ul><li>To survive in the market, the goal of any manufacturing industry is to produce goods at the lowest time possible and at the lowest cost. </li></ul><ul><li>Thus we decided to implement lean to improve productivity. </li></ul><ul><li>Lean means manufacturing without waste. </li></ul>
  4. 4. 2.LITERATURE REVIEW <ul><li>Indian apparel industry </li></ul><ul><li>The fundamentals of productivity improvement </li></ul><ul><li>Efficiency towards productivity in garment industry </li></ul><ul><li>Lean manufacturing </li></ul>
  5. 5. PRODUCTIVITY <ul><li>Productivity = Value / Time (productivity equals value divided by time) </li></ul><ul><li>By this definition there are two primary ways of increasing productivity: 1) Increase the value created 2) Decrease the time required to create that value. </li></ul>
  6. 6. LEAN MANUFACTURING <ul><li>What is lean ? </li></ul><ul><li>History of lean. </li></ul><ul><li>Objective of lean. </li></ul><ul><li>Lean concepts. </li></ul><ul><li>Principle of lean. </li></ul><ul><li>Lean tools. </li></ul><ul><li>Steps to achieve lean system. </li></ul><ul><li>Lean construction. </li></ul><ul><li>Benefits of lean. </li></ul><ul><li>Barriers for lean implementation. </li></ul>
  7. 7. LEAN <ul><li>Lean means manufacturing without waste. </li></ul><ul><li>Lean makes use of many tools and techniques </li></ul><ul><li>Lean manufacturing systems are aimed towards attaining the shortest cycle time by eliminating waste. </li></ul>
  9. 9. OBJECTIVE OF LEAN <ul><li>The basic objective of lean is to minimize the waste, and continuous improvement in every stage of product by utilizing minimum time and cost. </li></ul><ul><li>Lean manufacturing focuses on reduction of all kind of waste to make continuous flow of the work . </li></ul>
  10. 10. LEAN MANUFACTURING CONCEPT <ul><li>Lean is a team based approach to identify and eliminate waste through continuous improvement. </li></ul><ul><li>Any activity that adds cost or time without value to the service we offer to our customers is called waste . </li></ul><ul><li>There are seven kinds of deadly waste. </li></ul>
  11. 11. THE SEVEN WASTES <ul><li>Transportation (moving products that is not actually required to perform the processing) </li></ul><ul><li>Inventory (all components, work-in-progress and finished product not being processed) </li></ul><ul><li>Motion (people or equipment moving or walking more than is required to perform the processing) </li></ul><ul><li>Waiting (waiting for the next production step) </li></ul><ul><li>Overproduction (production ahead of demand) </li></ul><ul><li>Over Processing (due to poor tool or product design creating activity) </li></ul><ul><li>Defects (the effort involved in inspecting for and fixing defects) </li></ul>
  13. 13. LEAN TOOLS <ul><li>5s house keeping. </li></ul><ul><li>Poka-yoke. </li></ul><ul><li>JIT. </li></ul><ul><li>Kaizen. </li></ul><ul><li>Kanban. </li></ul><ul><li>Takt time. </li></ul><ul><li>TPM. </li></ul><ul><li>TPS. </li></ul><ul><li>VSM. </li></ul><ul><li>Work cell. </li></ul><ul><li>PDCA. </li></ul><ul><li>SMED. </li></ul><ul><li>Six sigma. </li></ul>
  15. 15. Steps to achieve lean systems <ul><li>The following steps should be implemented in order to create the ideal lean manufacturing system: </li></ul><ul><li>Design a simple manufacturing system </li></ul><ul><li>Recognize there is always room for improvements . </li></ul><ul><li>Continuously improve the lean manufacturing system design. </li></ul>
  16. 16. LEAN PROCESS
  17. 17. BENEFITS OF LEAN <ul><li>Utilization of Space </li></ul><ul><li>Inventory Reduction </li></ul><ul><li>Waste reduction </li></ul><ul><li>On time delivery </li></ul><ul><li>Quality products </li></ul><ul><li>Customer satisfaction </li></ul><ul><li>Productivity improvement </li></ul>
  18. 18. BARRIERS FOR LEAN IMPLEMENTATION <ul><li>Lack of awareness </li></ul><ul><li>Lack of interest. </li></ul><ul><li>Shortage of basic infrastructure </li></ul><ul><li>Wasteful movement due to a larger distance between supporting departments like personnel, payrolls, canteen, etc. </li></ul><ul><li>No regular and proper training to workmen and officers. </li></ul><ul><li>While implementing lean in initial stage, some production will be distributed. </li></ul><ul><li>More work in progress waiting for availability of next facility to carry out next operation. </li></ul><ul><li>Time wasting during drifting tools from one place to another. </li></ul><ul><li>Wrong concept about lean among employees </li></ul>
  19. 19. 3.METHODOLOGY <ul><li>We divided the project into three phases: </li></ul><ul><li>Study phase </li></ul><ul><li>Implementation phase </li></ul><ul><li>Result analysis phase </li></ul>
  20. 20. 3.1.STUDY PHASE <ul><li>We have studied the company’s day to day activities at the different departments. </li></ul><ul><li>We keenly watched about the style and how the process flow, the cut parts to packing are proceeded. It is the basic T-shirt, which is the running style. </li></ul><ul><li>First when we interacted with the merchandiser, we noted down the shipment trend of the company. </li></ul>
  21. 21. SHIPMENT DELAY <ul><li>When we analyzed the shipment details for the past six months in JUPITER GARMENT UNIT, we found that there were seven delayed shipments out of sixty total shipments </li></ul>
  22. 22. DELAY DUE TO VARIOUS PROBLEMS DELAY DUE TO VARIOUS PROBLEMS 84.35% 10.35% 4.69% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% LOSS P E R C E N T A G E SEWING PRINTING SOURCING
  23. 23. IDENTIFICATION OF THE PROBLEM <ul><li>The overall analysis of the shipment shows that delay is mostly due to sewing problems. </li></ul><ul><li>The loss due to air shipment alone costs 7% and other costs incurred in terms of overtime and extra wages are not included. </li></ul>
  24. 24. 3.2.IMPLEMENTATION PHASE <ul><li>We identified from shipment details that sewing is the reason for delays. </li></ul><ul><li>So we decided to concentrate on sewing floor. Out of different lean methods and tools, we decided to go for waste reduction and 5s housekeeping implementation. There are seven deadly wastes. </li></ul><ul><li>Among the seven wastes we concentrated on </li></ul><ul><li>Over production </li></ul><ul><li>Defects </li></ul><ul><li>Un necessary movements </li></ul><ul><li>Waiting time </li></ul>
  25. 25. 3.2.1.OVER PRODUCTION <ul><li>It is production waste which cannot be completely eliminated, but it can be reduced by lean manufacturing technique. </li></ul><ul><li>Here at this company we noticed that for every order, they cut extra 5% to meet the complete order . </li></ul><ul><li>Hence we decided to reduce the over production percentage by implementing lean manufacturing technique from 5% to 3% in next order for the same style. </li></ul>
  26. 26. PRODUCTION QUANTITY <ul><li>The total order quantity is 6000 pieces. </li></ul><ul><li>And with 3% over production 6180 pieces are cut ,instead of 6300 pieces with 5% over production. </li></ul><ul><li>So this reduced the total number of pieces to be sewn. </li></ul>
  27. 27. 3.2.2.PROCESS WASTE <ul><li>Production defects and service errors waste resources in four ways. </li></ul><ul><li>First, materials are consumed. </li></ul><ul><li>Second, the labor used to produce the part (or provide the service) the first time cannot be recovered. </li></ul><ul><li>Third, labor is required to rework the product (or redo the service). </li></ul><ul><li>Fourth, labor is required to address any forthcoming customer complaints. </li></ul>
  28. 28. <ul><li>Instead of checking the defects at final stage, it is essential that while sewing itself operator has to be taught and trained to stitch properly. </li></ul><ul><li>We implemented traffic light system to control repairs and defects inside the sewing floor. </li></ul>
  29. 29. WHAT IS TRAFFFIC LIGHT SYSTEM? <ul><li>This is the visual technique used to control the repairs while sewing the product. three cards like the traffic signal light (Red, yellow, Green) are given to the operator according to their performance . </li></ul><ul><li>The red card is given for those, who are identified by the quality control supervisors to produce one or more defective items out of ten pieces inspected. </li></ul><ul><li>The yellow card is given to those who are identified by the quality control supervisors to produce two or more minor defects out of ten inspected. </li></ul><ul><li>The green card is given if no reworks are found. There by we can motivate the workers to produce good quality products. </li></ul>
  30. 30. TRAFFIC LIGHT SYSTEM <ul><li>This card is given by the quality controller when he comes for every round for inline inspection. </li></ul>
  31. 31. 3.3.3. WAITING TIME <ul><li>This includes waiting for bundle, accessories like label, thread, information, equipment, tools, etc. lean demands that for different reasons. </li></ul><ul><li>The reasons vary with respect to operation and the style. </li></ul><ul><li>But the most common reason, the most of the operators are waiting due to machine break down and needle breakages. </li></ul>
  32. 32. Productivity loss due to waiting time. <ul><li>Total minutes waited =225min </li></ul><ul><li>Time wasted by the individual for a day =3 min </li></ul><ul><li>Time wasted by 18 persons for a day =54 min </li></ul><ul><li>Time wasted by 18 persons for a week =324 min </li></ul><ul><li>Total minutes wasted in a week =549 min </li></ul><ul><li>Total working minutes in a week =3240 min </li></ul><ul><li>Total quantity that should be produced </li></ul><ul><li>in a week = 9300pieces </li></ul><ul><li>Pieces reduced due to waiting time =1487pieces </li></ul><ul><li>Productivity loss due to waiting time =15.9% </li></ul>
  33. 33. RED FLAG SYSTEM <ul><li>It is also noted that when needle is broken, the workers have to go to the ground floor to get the new one. Most of the time is wasted due to this. </li></ul><ul><li>So we suggested a red flag system. A red colored flag is made and placed in the sewing floor. </li></ul><ul><li>If the operator has machine problem, he has to place the red flag on the top of the machine. So that it is visible, when seen on any corner of the sewing floor. </li></ul><ul><li>The workers are waiting for the machine repair and so the time is wasted. So we suggested red flag system for the easy identification by the mechanic and thus the waiting time is saved </li></ul>
  36. 36. UNNECESSARY MOVEMENT IN MATERIAL HANDLING <ul><li>In this factory, usually, the cut parts are transferred from ground floor to second and third floor. Sometimes the worker takes the bundle from the cutting floor to the second floor or third floor instead of taking to the first floor. Thus most of the time is wasted and leads to confusion. </li></ul><ul><li>So we implemented again a color card system. Here for every floor there is a color and we stick this color card in the bundles to avoid confusions. For example red color for first floor, green color for second floor and so on. </li></ul>
  37. 37. The worker inserting the color card in the bundle. So, the helper will deliver the cut parts as per color code and hence no more ‘back and forth’ movement of bundle.
  38. 38. UNNECESSARY MOVEMENT IN INSPECTION <ul><li>We found that in the inspection table, the rework and finished goods are placed in the baskets without identification. </li></ul><ul><li>So there is a chance that some of the rework pieces are put in to the good pieces basket. </li></ul><ul><li>This sometimes leads for the rework pieces enter the packing section without any rework. </li></ul><ul><li>So, we made them to put the rework pieces and the good pieces in separate places to avoid Confusion with the clearly marked baskets. </li></ul>
  39. 39. UN NECESSARY MOVEMENT AT PACKING <ul><li>In packing department , all the packers are standing around the same table and put all the sizes in the same crates,thus the different size ranges are mixed up and it takes lot of time to arrange it while putting into the final carton boxes. </li></ul><ul><li>So we suggested them to put the finished goods in the basket according to the size ranges. It helped them to pack easily as per the size wise and to have clear account of the size wise and color wise breakup ratios. </li></ul>
  40. 40. HOUSE KEEPING <ul><li>The 5s practice is a house keeping technique used to establish and maintain a and productive quality environment in an organization. </li></ul><ul><li>A well-organized work place results in a safer, more efficient and more productive operation. Its boots the morale of the workers, promoting a sense of pride in their work and ownership of their responsibilities. </li></ul><ul><li>5s was invented in Japan. It stands for five Japanese words that start with the letter ′S′ SEIRI, SEITON, SEISO, and SEIKETSU. And SJITSUKE. </li></ul>
  42. 42. 4.RESULTS AND DISCUSSIONS <ul><li>The findings and analysis after the implementation and above methods to reduce different wastes are discussed in this chapter. </li></ul><ul><li>4.1.OVERPRODUCTION: </li></ul><ul><li>In this order no AH806, It is only 3% of order quantity is cut. </li></ul><ul><li>Order quantity =2000 packs(6000pieces) </li></ul><ul><li>Additional cuts = 3% ( 60 packs) </li></ul><ul><li>Total pieces cut =6000+180 </li></ul><ul><li>=6180 pieces. </li></ul>
  43. 43. At the end, the defects found during final inspection are given below. <ul><li>FINAL INSPECTION REPORT: </li></ul><ul><li>Placket up& down = 31 pieces </li></ul><ul><li>Print breakable =27 pieces </li></ul><ul><li>Non removal stains =7pieces </li></ul><ul><li>Seam opening =13 pieces </li></ul><ul><li>Un even join set =7pieces </li></ul><ul><li>Other defects =2 pieces </li></ul><ul><li>Total defects = 87pieces </li></ul><ul><li>Defect % =87/6180= 1.4% </li></ul><ul><li>Good pieces =93pieces. </li></ul><ul><li>It shows that out of 180 pieces 87 pieces are with different defects and 93 pieces are good pieces. </li></ul>
  44. 44. COST ANALYSIS <ul><li>1 piece cost =( 135 + 5 + 13)/3+ profit </li></ul><ul><li>= Rs 61 </li></ul><ul><li>Manufacturing cost for 6180 pcs in </li></ul><ul><li>after lean = Rs 3,76,98 </li></ul><ul><li>Loss = Rs 10,980 </li></ul><ul><li>When the over production rate is 5% for this order (6300pcs) loss =Rs 18,300 </li></ul><ul><li>Direct profit for single order; </li></ul><ul><li>Profit = Rs 7320 </li></ul><ul><li>The cost of the single T-shirt made in this order is Rs.61. since the cut quantity is reduced by 2%, the net cost saved is Rs. 7320 without any inventories. </li></ul>
  45. 45. 4.2.PROCESS WASTE: <ul><li>The result of traffic light system implementation is analyzed using the defects level, recorded during inline inspection for individual operator for four days and they are compared. </li></ul>
  46. 46. REWORKS- COMPARSION CHART <ul><li>It showed that at each operator, the defect level is gradually reducing. Hence, the rework time is reduced and so, their productivity is improved, as their repairing time is used to sew extra pieces. </li></ul>
  47. 47. 4.3.WAITING TIME <ul><li>Total minutes waited=76min </li></ul><ul><li>Time wasted by the individual for a day=3min </li></ul><ul><li>Time wasted by 18 persons for a day=54min </li></ul><ul><li>Time wasted by 18 persons approximately for a week=324min </li></ul><ul><li>Total minutes wasted in a week=400min </li></ul><ul><li>Total working minutes in a week=3240 min </li></ul><ul><li>Total quantity that should be produced in a week= 9300pcs </li></ul><ul><li>Pieces reduced due to waiting time=1084pcs </li></ul><ul><li>Productivity loss due to waiting time=11.66% </li></ul>
  48. 48. PRODUCTIVITY IMPROVED DUE TO REDUCTION IN WAITING TIME <ul><li>The graph shows that productivity loss is reduced from 15.9% to 11.66% by the elimination of simply the waiting time. </li></ul>
  49. 49. 5. CONCLUSION <ul><li>Out of seven deadly wastes we concentrated only on the four deadly wastes and with that itself it is proved that there is a remarkable improvement in quality and productivity and hence the profit. </li></ul><ul><li>It is also emphasized that this is made without any extra investments on the machine or materials and it is merely an implementation of lean methods. </li></ul><ul><li>We suggest that the factory should continue to follow the traffic light system and 5s house keeping system throughout the year, whatever may be the style and whatever may be the target. </li></ul>
  50. 50. <ul><li>In simple, for the repeat orders if they can control the defects, the extra pieces cut can be still reduced to 1%. </li></ul><ul><li>We also suggested few methods to control other deadly wastes to the production department. </li></ul><ul><li>Awareness must be created among the workers and supervisors to control the other deadly wastes such as over processing, more inventories, etc. </li></ul>
  51. 51. 6.REFERENCES <ul><li>Beau Keite and Drew, Locher (2004), the complete lean enterprise; value stream mapping for administrative and office processes, productivity press Newyork. </li></ul><ul><li>Charles J.Corbett (2003), environmental aspects of lean operations environmental management and operations management: introduction to the third special issue. </li></ul><ul><li>Dennis P.Hobbs (2003), lean manufacturing implementation APICS, the association of operations management, Santa Clara. </li></ul><ul><li>Jeffrey P.Wincel (2003), lean supply chain management, Avnet advantage magazine December. </li></ul>
  52. 52. <ul><li>Krishna Murari and KS Gupta (2008), Lean manufacturing hurdles and solutions, productivity Jan- mar 2008. </li></ul><ul><li>Paul Man fold (2005), lean for all- lean applications for SMEs </li></ul><ul><li>S.William,M.Feld (2001), lean manufacturing; the St Lucie press. </li></ul><ul><li>‘ Implementation of lean manufacturing: waste and time’ project work done by 2005 batch </li></ul>
  53. 53. <ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul>
  54. 54. <ul><li>THANK YOU </li></ul>