Challenges faced by auto companies in implementing lean manufacturing practices an indian perspective
DISSERTATION REPORT PRESENTATION
“Challenges faced by Auto companies in
implementing lean manufacturing practices”
(AN INDIAN PERSPECTIVE)
Mr. Saurabh Tiwari
Objective & Purpose
The project was undertaken to find the essential variables
to implement lean manufacturing practices ,
To determine what steps an Auto industry should follow
for successful implementation of lean practices,
To determine the most challenging factor or issue an
industry interface during lean implementation,
Questionnaire Design & Survey Research
Two broad questions were prepared for survey.
The targeted population was OEMs, Auto parts
manufacturers & assemblers.
The technique taken for sampling was Convenience
The first question covers all the variables and tools used
to implement lean practices.
The second question covers the issues & challenges an
auto industry interfaces during lean implementation in
How would you prioritize the lean manufacturing practices among the below given?
Or to which lean manufacturing practice you would like to give most preference ?
i. Visual Management (VM),
ii. Continuous improvement (CI),
iii. Total Quality Management (TQM),
iv. Process standardization (SOP),
v. Reduction in set-up time (SMED),
vi. Total Productive Maintenance (TPM),
vii. Just-in-Time (JIT),
viii. Supplier Relationship (SR),
ix. Customer Relationship (CR),
x. Design Integrated with Manufacturing (DFMA),
xi. High Involvement Work Practice (HIWP): Empowerment Training and
xii. Cellular Manufacturing,
xiv. KANBAN/ Pull Production,
xv. Kaizen. Source:
Which challenge or issue halts you most in implementing lean manufacturing practices
in your organization ?
i. Financial capability,
ii. Change Management,
iii. Infrastructural problem,
iv. Top Management involvement,
v. Supply Chain network,
vi. Associated risk with lean,
vii. High Uncertainty.
(RESPONSE IN DESCENDING PRIORITY ORDER)
Respondent 1:- Maruti Suzuki India Limited (MSIL), Manesar, Haryana
Ans. 1:- 2,5,8,1,3,9,15,10,11,14,4,7,13,12,6
Ans. 2:- 2,7,4,5,3,1,6
Respondent 2:- Minda Industries Limited, Manesar, Haryana
Ans. 1:- 9,2,6,10,15,12,4,1,7,3,13,4,11,14,5
Ans. 2:- 2,4,7,6,3,5,1
Respondent 3:- Sona Koyo Steering Pvt. Ltd., Bawal, Haryana
Ans. 1:- 10,5,9,11,15,6,2,1,14,4,13,12,7,8,3
Ans. 2:- 4,2,7,3,5,6,1
Respondent 4:- Hero Moto Corporation Pvt. Ltd. , Dharuhera, Haryana
Ans. 1:- 4,9,14,11,3,7,1,5,12,2,15,6,8,13,12
Ans. 2:- 2,7,4,3,5,6,1
Respondent 5:- MPT- Amtek Automotive Pvt. Ltd., Dharuhera, Haryana
Ans. 1:- 14,1,10,3,7,6,12,5,15,2,8,13,4,11,9
Ans. 2:- 2,4,7,5,3,6,1
Respondent 6:- Musashi Auto Parts Pvt. Ltd., Bawal, Haryana
Ans. 1:- 7,13,1,8,4,12,7,5,15,10,2,6,11,14,3
Ans. 2:- 2,7,4,3,5,6,1
Respondent 7:- Bajaj Motors Pvt. Ltd, Manesar, Haryana
Ans. 1:- 11,5,15,10,2,8,14,6,13,7,1,9,3,12,4
Ans. 2:- 2,4,7,5,3,6,1
Solution by interpretive structural modeling (ISM)- Case 1
Now, assuming 4 probable condition.
Developing Structural Self Interaction Matrix (SSIM):
Findings & Conclusion
As seen from the case 1, there is no standard for priority of implementation of
lean practices or tools.
All identified essential variables have same importance and their priority of
implementation differs from company to company.
The second case determines the most driver and most dependent variable, which
can affects an industry during lean implementation.
The change management is found to be the most driver or critical factor which
halts the company to implement lean practices.
After that Top management involvement and then Infrastructure problem &
Supply chain network create hurdles during implementation.
In today’s competitive and dynamic market condition, companies are trying to
offer product at a lower price and of better quality than competitors.
To reduce the cost associated with a particular product, it becomes essential for
companies to implement lean practices in their operations.
Results shows that, apart from reducing waste, lean also improves quality at
source, better resource utilization and ultimately increases profit as well.
An industry must motivate their employees and should make
them aware & ready for change in doing things and tasks.
Top management must be involved in giving instructions and
should encourage their shop floor employees (who are one have
to do it practically).
Lean practices must be understood as a long term process, not a
single time activity or method.
There should be a PATHSALA or special learning & training
classes for employees.
Change management is the most challenging factor, that’s why
company should try to make their employees understandable
about the change and benefits.
It must be clearly stated that all employees are responsible for
lean at their working place, this is not a single person or group
At last they (all employees) should work in a integrated and
supportive manner so that successful implementation can work.
All lean practices have their own benefit, so there is no standard
which should one implement first, may chose conveniently.