Challenges faced by auto companies in implementing lean manufacturing practices an indian perspective


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Supply Chain Modeling and Design, Risk Priority Factor determination by SSIM technique.

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Challenges faced by auto companies in implementing lean manufacturing practices an indian perspective

  1. 1. A DISSERTATION REPORT PRESENTATION ON “Challenges faced by Auto companies in implementing lean manufacturing practices” (AN INDIAN PERSPECTIVE) PRESENTED BY: RAVINDER DAHIYA (R600211047) Guided by: Mr. Saurabh Tiwari Asst. Professor, COMES, UPES.
  2. 2. 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,
  3. 3. 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 Sampling.  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 their operations.
  4. 4. 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 Rewards, xii. Cellular Manufacturing, xiii. 5S, xiv. KANBAN/ Pull Production, xv. Kaizen. Source: MIL
  5. 5. 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.
  6. 6. RESPONDENTS:- (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
  7. 7. Solution by interpretive structural modeling (ISM)- Case 1 Now, assuming 4 probable condition. Developing Structural Self Interaction Matrix (SSIM):
  8. 8. Developing Initial Reachability Matrix (IRM)
  9. 9. Iteration Table
  10. 10. Solution by interpretive structural modeling (ISM)- Case 2 Now assuming 4 probable condition, Initial Reachability Matrix (IRM):
  11. 11. Iteration tables
  13. 13. 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.
  14. 14. Recommendations  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 activity.  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.
  15. 15. Any Queries ??? . . . Thank You