LASSIB    INDUSTRY RESEARCH ON LEAN IMPLEMENTATIONSOCIETY   IN ELECTRICAL AND ELECTRONICS INDUSTRY
Table of Contents1 .0      ABSTRACT .........................................................................................
1.0 ABSTRACTThe purpose behind creating this research report is to showcase the Return on Investments(ROI) and benefits of...
3.0 STRATEGIC CHALLENGES BEING FACED BY ELECTRICAL & ELECTRO NICS       INDUSTRYLASSIB Society | Industry Research on Lean...
4.0 OPERATIONAL CHALLENG ES BEING FACED BY ELECTRICAL & ELECTRONICS    INDUSTRYLASSIB Society | Industry Research on Lean ...
5.0 ROLE OF LEANTO OVERCOME THESE CHA LLENGESLASSIB Society | Industry Research on Lean and Six Sigma Implementation in El...
5.1 STRATEGIC BENEFITS       5.2 OPERATIONAL BENEFITS       5.3 ADMINISTRATIVE BENEFITSLASSIB Society | Industry Research ...
6.0 SAMPLE ORGANIZATIONS IMPLEMENTING LEAN IN THE ELECTRICAL &    ELECTRONICSINDUSTRYLASSIB Society | Industry Research on...
7.0 CASE STUDIES OF LEAN IMPLEMENTATION IN ELECTRICAL & ELECT RONICS    INDUSTRY       7.1 TELEDYNE TEKMAR       7.2 KODAK...
7.3 ELECTRICAL & ELECTRO NIC INDUSTRY IN MALA YSIA       7.4 LARGE ELECTRONIC FIRM IN KUWAITLASSIB Society | Industry Rese...
7.5 LARGE INTRUMENTATION FIRM IN UNITED STATESLASSIB Society | Industry Research on Lean and Six Sigma Implementation in E...
8.0 WHAT IS LEAN?Lean is a philosophy and a set of management techniques focused on continuous“eliminating waste” so that ...
Waste in the supply chain        Waste in the technical specifications        Waste in the staff support functions        ...
These figures are immense and show that many companies can not only increase theirproductivity by optimizing their busines...
WORKS CITEDal, W. e. (1990).Allen N. Chournos. Lean Manufacturing. Salt Lake City: Premier Consulting, Inc.Allen N. Chourn...
10.0 ABOUT LASSIBLASSIB Society is a not-for-profit organization pioneering and spreading the knowledge of OrganizationalE...
12.0 CONTRIBUTORS TO THE RESEARC H REPOR TRole             Full Name                     Designation                      ...
Participate in LASSIB   Network, brainstorm, and learn from industry         Sponsorship costs and delegateEvents         ...
Headquarter Address:#5-62/9/22-B, V. V. Nagar, Street No. 8, Habsiguda, Hyderabad, Andhra Pradesh, India. PIN: 500007Offic...
Upcoming SlideShare
Loading in …5
×

Industry research on lean implementation in Electrical & Electronics industry - preview

1,165 views

Published on

LASSIB - Industry Research on Lean Implementation in Electrical & Electronics Industry - Preview

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,165
On SlideShare
0
From Embeds
0
Number of Embeds
103
Actions
Shares
0
Downloads
22
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Industry research on lean implementation in Electrical & Electronics industry - preview

  1. 1. LASSIB INDUSTRY RESEARCH ON LEAN IMPLEMENTATIONSOCIETY IN ELECTRICAL AND ELECTRONICS INDUSTRY
  2. 2. Table of Contents1 .0 ABSTRACT ...............................................................................................................................32 .0 IN TRODUCTION .......................................................................................................................33 .0 STRATEGIC CHAL L EN GES BEIN G FACED BY EL ECTRICAL & EL ECTRO N ICS IN DUSTRY ...................44 .0 OPERATION AL CHALL EN GES BEIN G FACED BY EL ECTRICAL & EL ECTRON ICS IN DUSTRY ..............55 .0 ROL E OF L EAN TO OVERCOME THESE CHALL EN GES ..................................................................6 5 .1 STRATEGIC BEN EFITS ...........................................................................................................7 5 .2 OPERATION AL BEN EFITS......................................................................................................7 5 .3 ADMIN ISTRATIVE BEN EF ITS .................................................................................................76 .0 SAMPL E ORGAN IZATION S IMPL EMEN TIN G L EAN IN THE EL ECTRICAL & EL ECTRON ICSIN DUSTRY..........................................................................................................87 .0 CASE STUDIES OF L EAN IMPL EMEN TATION IN EL ECTRICAL & EL ECTRON ICS IN DUSTRY ..............9 7 .1 TEL EDYN E TEKMAR .............................................................................................................9 7 .2 KODAK GCG FACTORY IN L EEDS, EN GLAN D ..........................................................................9 7 .3 EL ECTRICAL & EL ECTRON IC IN DUSTRY IN MAL A YSIA ..........................................................1 0 7 .4 L ARGE EL ECTRON IC FIRM IN KUWAIT ................................................................................1 0 7 .5 L ARGE IN TRUMEN TATION FIRM IN UN ITED STATES............................................................1 18 .0 WHAT IS L EAN ? .....................................................................................................................1 29 .0 CON CL USION ........................................................................................................................1 4WORKS CITED ..................................................................................................................................1 51 0 .0 ABOUT L ASSIB.......................................................................................................................1 61 1 .0 ABOUT L ASSIB RESEARC H REPORTS .......................................................................................1 61 2 .0 CON TRIBUTORS TO THE RESEARCH REPORT ...........................................................................1 71 3 .0 HOW YOU CAN L EVERAGE AN D SUPPORT L ASSIB S OCIETY .....................................................1 7LASSIB Society | Industry Research on Lean and Six Sigma Implementation in Electrical & Electronics IndustryPage |2
  3. 3. 1.0 ABSTRACTThe purpose behind creating this research report is to showcase the Return on Investments(ROI) and benefits of using Lean techniques in Electronics and Electrical Industries.The challenges currently being faced in this industry can be largely broken into twocategories – Strategic Challenges Operational ChallengesOrganizations need to focus initiatives at both these levels in order to sustain and grow. Thisreport looks at tools and techniques of Lean and Six Sigma, and how these can helporganizations address these requirements. The report includes overview of Lean with casestudies on how these techniques have helped Electrical and Electronics companies manageand grow their business.The report draws in experience of Electrical & Electronics experts, primary as well assecondary research sources. Please refer to the list of references at the end of the report fora complete list of sources used to build this report.2.0 INTRODUCTIONLASSIB Society | Industry Research on Lean and Six Sigma Implementation in Electrical & Electronics IndustryPage |3
  4. 4. 3.0 STRATEGIC CHALLENGES BEING FACED BY ELECTRICAL & ELECTRO NICS INDUSTRYLASSIB Society | Industry Research on Lean and Six Sigma Implementation in Electrical & Electronics IndustryPage |4
  5. 5. 4.0 OPERATIONAL CHALLENG ES BEING FACED BY ELECTRICAL & ELECTRONICS INDUSTRYLASSIB Society | Industry Research on Lean and Six Sigma Implementation in Electrical & Electronics IndustryPage |5
  6. 6. 5.0 ROLE OF LEANTO OVERCOME THESE CHA LLENGESLASSIB Society | Industry Research on Lean and Six Sigma Implementation in Electrical & Electronics IndustryPage |6
  7. 7. 5.1 STRATEGIC BENEFITS 5.2 OPERATIONAL BENEFITS 5.3 ADMINISTRATIVE BENEFITSLASSIB Society | Industry Research on Lean and Six Sigma Implementation in Electrical & Electronics IndustryPage |7
  8. 8. 6.0 SAMPLE ORGANIZATIONS IMPLEMENTING LEAN IN THE ELECTRICAL & ELECTRONICSINDUSTRYLASSIB Society | Industry Research on Lean and Six Sigma Implementation in Electrical & Electronics IndustryPage |8
  9. 9. 7.0 CASE STUDIES OF LEAN IMPLEMENTATION IN ELECTRICAL & ELECT RONICS INDUSTRY 7.1 TELEDYNE TEKMAR 7.2 KODAK GCG FACTORY IN LEEDS, ENGLANDLASSIB Society | Industry Research on Lean and Six Sigma Implementation in Electrical & Electronics IndustryPage |9
  10. 10. 7.3 ELECTRICAL & ELECTRO NIC INDUSTRY IN MALA YSIA 7.4 LARGE ELECTRONIC FIRM IN KUWAITLASSIB Society | Industry Research on Lean and Six Sigma Implementation in Electrical & Electronics IndustryPage | 10
  11. 11. 7.5 LARGE INTRUMENTATION FIRM IN UNITED STATESLASSIB Society | Industry Research on Lean and Six Sigma Implementation in Electrical & Electronics IndustryPage | 11
  12. 12. 8.0 WHAT IS LEAN?Lean is a philosophy and a set of management techniques focused on continuous“eliminating waste” so that every process, task or work action is made “value adding” (thereal output customer pays for!!) as viewed from customer perspective. Lean “wasteelimination” targets the “Eight Wastes” namely:• Overproduction – Making more than what is needed by customer / market demand• Over-processing- Doing more to a product/service (but not perceived as value by customer or business)• Waiting – For material, information, people, equipment, procedures, approvals and more• Transportation – Movement of products / items during or after production• Defects – Errors, mistakes, non- complying products, services, documents, transactions• Rework and Scrap – Products, transactions or outputs not meeting specifications and have to be fixed, redone, rectified, marked down or scrapped / unusable• Motion – Mainly people, document movement, searching etc.• Inventory – Buffer stocks or resources (Raw, Work in process, Finished Goods, Bench staff etc.,)• Unused Creativity – People knowledge and skills that are not utilized by the companyWastes make the organization slow, inefficient and uncompetitive. Lean methods help toremove / reduce waste and contributes to driving “business agility” (velocity) throughsmooth work flow across the organization resulting in rapid fulfilment of customer needs inan optimum manner.(ExampleCG)Lean tools and techniques are designed to eliminate waste, and every organization issubject to generating waste.LASSIB Society | Industry Research on Lean and Six Sigma Implementation in Electrical & Electronics IndustryPage | 12
  13. 13. Waste in the supply chain Waste in the technical specifications Waste in the staff support functions Waste in the office processing Waste in the manufacturing processesWaste equates to dollars lost, opportunities lost, and loss of human motivation. Each ofthese three criteria can have a positive and / or negative impact on the organizationsbottom line. And the bottom line can be the difference between profit and loss to anorganization, or the difference between just barely making a marginal profit and becoming a“cash cow” enterprise.Waste equates to dollars lostEvery organization has an intrinsic proclivity to generate waste in the way they run theirbusiness. Waste is the difference between the way things are now and the way things couldbe if everything were perfect-no errors, troubles, problems or complexities.The Lean Enterprise process can be simplified by first, “find the waste;” secondly, to “get ridof the waste;” and thirdly, “prevent its return-forever." The Lean process looks everywherefor waste and reviews every activity to evaluate whether it adds value from the externalcustomer’s viewpoint.Waste equates to opportunities lostImplementing lean tools and techniques will enable your organization, no matter how largeor small, to meet your customers’ demand for a quality product or service, at the time theyneed it, and for a price that is competitive.A lean system also creates a business and manufacturing process that is agile and efficient,and that will help your company manage its total costs and provide a fair ROI.Waste equates to loss of human motivationFor cost management to be successful, everyone in your organization must contribute tothe effort. They must feel a part of the improvement process, and be empowered to committime and intellectual resources to the effort.And because lean systems are customer focused and driven, a lean enterprise’s productsand services are created and delivered in the right amounts, to the right location, at theright time, and in the right condition.Did you know that in American offices, an average of 6 weeks per year or 13% of a workdayare wasted simply by searching for items? Taking a workday of 7 hours per day and 232working days a year, would result in wastage of 211 hours per person per year. Ultimately,assuming an average hourly rate of $60 per hour per person would result in a total of$12,600peryear in wasted time per person!LASSIB Society | Industry Research on Lean and Six Sigma Implementation in Electrical & Electronics IndustryPage | 13
  14. 14. These figures are immense and show that many companies can not only increase theirproductivity by optimizing their business processes but often also have a high potential ofimproving performance in their sites and offices.Most people excuse their messy sites and offices by saying they don’t have time to clean.But dealing with the consequences of a chaotic workspace takes far more time than simplycleaning. If a clean office increases your productivity by only 20%, that can convert intoapproximately $40,000 to $50,000 in value over the next 10 years. A clean site and officealso pays off in reduced stress and anguish, not to forget about improved safety.9.0 CONCLUSION Lean has been at the forefront of the quality movement in recent years. On the way to get more and more importance, Lean has conquered many areas by improving the performance of several processes. Lean thinking gives the potential to refine current approaches to Electrical & Electronics Industry improvement. In addition to elimination of waste, it offers benefits by delivering reduced variation. However, in order for this approach to be successful, it needs strong linkages to strategy, a clear collaborative framework and a combination of tools for addressing the twin goals of waste and variation reduction. The benefits for a company by application of Lean can be manifold. These benefits, for example, can be increase in customer satisfaction, increase in revenues, reduction in cycle times and higher flexibility to capitalize on present-day market demands.LASSIB Society | Industry Research on Lean and Six Sigma Implementation in Electrical & Electronics IndustryPage | 14
  15. 15. WORKS CITEDal, W. e. (1990).Allen N. Chournos. Lean Manufacturing. Salt Lake City: Premier Consulting, Inc.Allen N. Chournos, . Lean Manufacturing. Salt Lake City: Premier Computing, Inc.BUREAU VERITAS GROUP. (2012). Electrical & Electronics. The Challenge: Delivering Internationally CompliantProducts .By Frank J. Esposto. Less Overfill Can Mean More Proofit. USC Consulting Group.c. (fbfxb ). c cv: cx .Empfasis. (2008). Lean Manufacturing for Electronics. United States.ExampleCG. (n.d.). Lean Six Sigma an Overview. Lean Six Sigma an Overview , 5.Hisham Sabry. (2010). Enterprise Cost Reduction through Lean Six Sigma Implementation. Kuwait.James D. Tarr. (n.d.). Seven ways to reduce your inventory. Seven Ways To Reduce Your Invento ry , pp. 1-2.John Gillett, Ross Fink, Nick Bevington. (2010). How Caterpilla r Uses Six Sigma to execute strategy. UnitedStates: Caterpillar.kjn. (lkj). j. ikj.Mark Zetter. (2009). Economic drivers, challenges creating regional electronics industry. Economic drivers,challenges creating regional electronics industry .Matthew Moor e. (2008). The Kodak Operating System: successfully integ rating Lean. Leeds: Improvement andInnovation.com.Menlo. (2008-2012). About Menlo: Lean Logistics. About Menlo: Lean Logistics .Mike Roberts. (2012). Top Challenges In Electronics Manufactu ring. MANUFACTURING.NET.Ranawat, M. (2007). Six Sigma in Logistics. Munich: GRIN Publishing GmbH.Steven Bonacorsi. Six Sigma in Action: Shipping Cost Redu ction. United States: GE Capital.TEKMAR. Teledyne Tekmar Lean Implementation. Mason: Teledyne Tekmar.UNESCO. (2010). Engineering: Issues, Challenges and opportunities fo r devlopment. France: UNESCO .Vikram Dahiya. (2012). Shipping Logistics. United States.Yu Cheng Wong, Kuan Yew Wong, Anwar Ali. (2009). Lean Manufacturing Implementation in the MalaysianElectrical & Electronics Industry. European Journal of Scien tific Research , 522-535.LASSIB Society | Industry Research on Lean and Six Sigma Implementation in Electrical & Electronics IndustryPage | 15
  16. 16. 10.0 ABOUT LASSIBLASSIB Society is a not-for-profit organization pioneering and spreading the knowledge of OrganizationalExcellence to the worldwide community. Based on the principles on Gandhian Engineering, we deliver cuttingedge industry research and enhanced value. LASSIBs vision is to create and provide the worl ds most usefulOrganizational Excellence resource centre and certification programs, available for the users at the lowestcost.LASSIB Society organizes multiple events both through physical locations and virtual mediums to promote itsvision.11.0 ABOUT LASSIB RESEARCH REPORTSIn conjunction with the Knowledge Base LASSIB Society publishes , LASSIB Society also releases a hostofresearch reports through primary and secondary research. These research reports get wide audience acrossthe industry and are sought after by International Journals as well.Some of the research reports published by LASSIB Society around the world include: Industry Research on Lean and Six Sigma Implementation in Logistics Industry Framework for Implementation of Lean Tools in Indian MSME Sector Lean Six Sigma for Graduates and Post Graduates Return on Investment after Implementation of 5SThese Research Reports are a valuable resource for the industry at large, and serve to provide key insights thatcan be used by industry leaders to shape the strategy for their organizations.Please refer to http://www.lassib.org/ for details of all research reports of LASSIB Society.LASSIB Society | Industry Research on Lean and Six Sigma Implementation in Electrical & Electronics IndustryPage | 16
  17. 17. 12.0 CONTRIBUTORS TO THE RESEARC H REPOR TRole Full Name Designation OrganizationAuthor Mr. Varun Khare Coordinator LASSIB SocietyReviewer Ms. Shilpa Kota Secretary LASSIB Society13.0 HOW YOU CAN LEVERAGE AND SUPPORT LASSIB SOCIETYAlthough LASSIB is a not for profit organization, it does not believe in raising funds through charitable means,without providing direct value to the contributor. There are many different ways in which organizations,institutions, governments and individuals across the globe are working with LASSIB to deliver value tothemselves and their customers. LASSIB is proud to be associated with all of them in developing and deliveringcutting edge solutions that have not only delivered quantified business value to them but also added thoughtleadership to the industry at large. Below are some ways in which you can leverage and support LASSIB.Leverage LASSIB for Benefits to you Support to LASSIByour initiativesBecome an Access complete knowledge base including Funds collected throughIndividual or training materials, best practices, case studies, membership fees are used toOrganization videos and webinars from LASSIB Society maintain and grow LASSIBMember of LASSIB. Network, learn and contribute to the fastest knowledge base. growing community of specialist, seniorVisit leaders from the industryhttps://lassib.org/ind Get latest updates, insights and research fromex.php/membership the industry delivered to your Inboxto know more aboutLASSIB membershipoptions.Leverage Training Get trained from the leading experts from the Training and certification feesand Certification in industry who bring together years of charged by LASSIB Society are thethemes of experience and best in class training skills, lowest in the Industry in order to tools and technologiesOrganization ensure these key components are Acquire not only knowledge but skills toExcellence. available within reach to masses. implement the knowledge in real life scenarios Attain internationally respected certifications The fees charged helps cover the thereby adding value to your organization and cost incurred by LASSIB Society for yourself hiring trainers and issuing Join the growing panel of Accredited Training certificates. Providers (ATP) and Accredited Test Centers (ATC) of LASSIB Society to deliver value within your organization.Consult with LASSIB Solve organization problems, create strategy, Consulting fees derived by LASSIBexperts to deliver deliver customer value through proven tools and Society aids LASSIB to fundbusiness and techniques of Lean and Six Sigma research, host events and providecustomer value free consulting services to organizations which cannot afford to pay yet.LASSIB Society | Industry Research on Lean and Six Sigma Implementation in Electrical & Electronics IndustryPage | 17
  18. 18. Participate in LASSIB Network, brainstorm, and learn from industry Sponsorship costs and delegateEvents leaders, face to face, over exciting discussions fees assist LASSIB in conducting these events and spreading the awareness within the community.Participate and Understand the trends in the industry By participating in building theseleverage Industry Identify common challenges and best practices reports, you provide theResearch Hear from exper ts on future forecasts opportunity to LASSIB to share your knowledge with the r est of the industry. Please refer to http://www.lassib.org for details on LASSIB or Send a note to contact@lassib.org to get connected to a LASSIB consultant or Call +91-9246185187 (India) to speak to a LASSIB consultant directly.LASSIB Society | Industry Research on Lean and Six Sigma Implementation in Electrical & Electronics IndustryPage | 18
  19. 19. Headquarter Address:#5-62/9/22-B, V. V. Nagar, Street No. 8, Habsiguda, Hyderabad, Andhra Pradesh, India. PIN: 500007Office: +91-40-40045614 | India Fax: +91-40-40045615 | Toll Free Number: 1-800-425-1388Email: contact@lassib.org| Website:http://www.lassib.org

×