Level One - Unlock Your Career in Manufacturing - Sample

Unlock Your Career in Manufacturing
LeveL
One
The best guide to your engineering career.
A must have in Human Resources function.
AnAnth PALAniAPPAn

Notion Press
Old No. 38, New No. 6
McNichols Road, Chetpet
Chennai - 600 031
First Published by Notion Press 2016
Copyright © Ananth Palaniappan 2016
All Rights Reserved.
ISBN 978-1-946048-81-3
This book has been published with all efforts taken to
make the material error-free after the consent of the
author. However, the author and the publisher do not
assume and hereby disclaim any liability to any party
for any loss, damage, or disruption caused by errors or
omissions, whether such errors or omissions result from
negligence, accident, or any other cause.
No part of this book may be used, reproduced in any
manner whatsoever without written permission from the
author, except in the case of brief quotations embodied in
critical articles and reviews.

Contents
Meet the Author ix
Disclaimer xi
Foreword xiii
Acknowledgements xv
Introduction xvii
Why this book? xix
What do we cover in this book? xxi
Structure of the contents xxiii
Chapter 1
Introduction 1
Chapter 2
Production 7
Chapter 3
Purchase 45
Chapter 4
Stores 77
Chapter 5
Maintenance 107
Chapter 6
Production Planning 129
Chapter7
Quality 153
Abbreviations 179

Meet the Author
AnanthistheCEOandFounderofHashManagementServices
LLP. Ananth has over 11 years of experience in the areas of
Implementation of Lean Manufacturing concepts, Quality
Management, and Supply Chain Management initiatives.
Some of the industries he works/worked with are Textiles,
Leather and Footwear, Castings and Forgings, Electronic
Equipment, Pump Manufacturing, Fabrication, White goods,
Heavy Engineering and Light Engineering sectors. He
works with Industry bodies like CII, FICCI and currently
working with International Labour Organization (ILO) for
implementing their SCORE Program in a few auto ancillaries
in Chennai. He is also an empaneled Lean Manufacturing
Consultant (LMC) with National Productivity Council
(NPC) and working on Implementing Lean Manufacturing
principles for Small and Medium Enterprises.
Prior to Hash Management Services LLP, he was a
consultant with Deloitte`s consulting practice in India.
Earlier, Ananth worked with Titan Industries Ltd, as a Senior
Engineer responsible for productivity improvements and
various quality initiatives. He holds PGDM from the IFMR,
Chennai and a Bachelors degree in Mechanical Engineering
from the Government College of Engineering, Tirunelveli.

DisClAiMer
The advice contained in this material is for a specific audience
andnotforgeneralpublic.Theauthordesignedtheinformation
to present his opinion about the subject matter. The reader
must carefully investigate all aspects of any business decision
before committing him or herself. The author obtained the
information contained herein from sources he believes to
be reliable and from his own personal experience, but he
neither implies nor intends any guarantee of accuracy. The
author particularly disclaims any liability, loss or risk taken by
individuals who directly or indirectly act on the information
herein.The author believes the advice presented here is sound,
but the readers cannot hold him responsible for either the take
or the result of those actions.
We have used a few pictures in this book, which were
taken from public sources. These are only for educational
purposes. We do not own these images.The Author and Hash
Management Services LLP will not take ownership for these
images and any liability arising out of these images

ForeworD
For a fresh graduate or an apprentice, his first day in his
first job and the next few weeks in an industrial or business
establishment can be very exciting. That is but half the story.
The idea of having landed a good job and the new life they
have just begun can be clouded by the strange environment
about which the candidate knows very little, especially when
he might be asked to start working and performing, can be
disturbing.
New employees find themselves in a situation that is at
once interesting and demanding. Many enterprises put the
new joiners in a formal induction program which are effective
ice breakers in a way, but acclimatising to the new professional
environment is an involved task, daunting to many including
the employers.
Ananth Palaniappan from Hash Management Services
LLP has just about made the lives of thousands of graduates
and apprentices (and enterprises) easy by coming out with
a very interesting booklet titled “Level One” aimed to help
students and apprentices joining any manufacturing and
associated business establishments.
In this book, every essential function or department, viz:
Planning, Production, Purchase, Stores, Quality, Maintenance
etc. you will encounter in the work-place have been introduced
and their basic responsibilities, why they exist, what they do
and how they work and what results they produce are explained
in a simple but precise manner that anybody can understand.
Lots of charts and images have been used succinctly to
make the reading effective, simple explanations, staying close
to basics and essential / need-to-know information make

xiv Foreword
this book very lively and informative and non-organization
specific.
This book would be very useful for small enterprises that
have a floating population of labour and/or high attrition and
labour turn-over where inducting new employees can be an
involved and expensive exercise.This book can easily substitute
a very rigorous induction program and expedite the absorption
of the new candidate into the ways of the organization, helping
in early acclimatisation and early gains in productivity from
the new joiner.
I strongly recommend this book being introduced as
essential part of induction in Small Medium scale enterprises as
well as large corporates who have a need to minimize induction
efforts and maximise efficiencies from new employees who are
fresh to business and industrial practices.
I congratulate Ananth Palaniappan for taking up this
task and doing this so well in this niche area with compassion
towards a class of people who are young, and looking forward
to build a great professional future for themselves.
K. Ganesh
Formerly, Joint Director, Bureau of Indian Standards,
Formerly, General Manager, Quality and IT – Alstom, Formerly
Director, IBM India Pvt Ltd
Currently Consultant, ILO SCORE

ACknowleDgeMents
This book would not have become a reality without the
contribution from V N Shiju who worked with me on creating
the contents, L S Kannan contributed Quality section,
Veerabaghu, my mentor and guide, my wife Jeyalakshmi who
helped me in documentation, A S Senthil Kumar, my first
boss who helped me understand the basics of manufacturing
industry, my colleagues at Deloitte and all my friends who
stood by me during some of the toughest times in my life.

introDuCtion
Not quite sure if this book would be useful for you?
If you belong to any of the category of people mentioned
below, then this book is for you.

why this book?
ƒ In India, several studies conducted on the employability
skills state that only 5% to 10% of the Engineers graduating
from the Institutions are Job-Ready / Employable
ƒ Industries require workforce which are readily employable,
so that they do not have to spend a lot of money and effort
on providing basic skills and on-the-Job training
ƒ While large organisations have Induction training for
their employees, many medium and small scale companies
do not have proper structure to provide this training
ƒ Their employees work with very little awareness of the
best practices of the industry, making them frustrated,
fire-fighting for day-to-day activities and results in a lot
of stress
ƒ This also makes the companies uncompetitive, leading to
poor business performance, resulting in poor motivation
of the people, and this becomes a vicious cycle
ƒ This publication is aimed at providing the fundamentals of
manufacturing management which are not offered by any
of our institutions/curriculum to Engineers and Diploma
Holders who are joining Manufacturing Industry
ƒ This is our initiative to empower the professionals in
performing more efficiently and effectively helping the
organization and the nation
ƒ In addition, this gives us immense satisfaction that we are
giving something back to the ecosystem we are working in
and are able to challenge the traditional way of thinking
and practices

whAt Do we Cover in this
book?
A typical manufacturing company has Production, Production
Planning, Quality, Stores, Purchase, Maintenance, Finance &
Accounts,Marketing,Human Resources,Admin ,Information
Technology and Sales functions.
However, we would cover
1. Production
2. Production Planning
3. Purchase
4. Stores
5. Quality
6. Maintenance
functions in this book, since these are the major areas, an
Engineer or a Diploma/Degree Holder joins after his/her
degree.

struCture oF the Contents
Each department / function is explained in the following
structure:
ƒ General Introduction to the Function / Department
ƒ Organization Structure of the function
ƒ Roles and Responsibilities of the key incharges
ƒ Process Flow in the function
ƒ Tools and Techniques required in the function
ƒ Pictures and tables to demonstrate the activities
(wherever applicable)
ƒ MIS Reports and the Analysis to be done
ƒ Key Result Areas (KRAs) and Key Performance
Indicators (KPIs) for each function

introDuCtion to MAnuFACturing CoMpAny
A manufacturing company produces goods (or materials) using
tools, machines, chemical processing, biologic processing or
formulation and with the use of people. Manufacturing ranges
from small hand-made products (Handicrafts industry) to large
/ Hitech products (Aircraft / Bullet Trains).
A typical manufacturing company procures many parts/
raw materials from various suppliers (or Vendors), process
them (discrete manufacturing or flow manufacturing) and sell
to its customers. These customers may be the end users of the
product or may use the products to make other products. For
e.g. A glass manufacturing company procures silica and other
raw materials for making glass. This can either be sold as end
product to consumers (for home use) or to an Automotive
factory to use these glass for cars (of course, the grades would
be different).
In this book, we consider a typical manufacturing
company consisting of a few discrete manufacturing processes
(e.g., Turning, Milling, Polishing, etc.).
There are various functions (or departments) in
organisations, each focusing on a few major activities.
1. Production Function - Focuses on the manufacturing
of the product
2. Purchase Function - Focuses on purchasing / buying
the raw materials and consumables required for the
production
3. Stores Function - Focuses on the receiving the
incoming raw materials, holding them properly and
issuing them to the user department when there is a
need for the materials
4. Maintenance - To keep all the machines ready for
production and to prevent break-downs of machines

4 Day One
Each function consists of a group of persons (or a single
person) performing their tasks.
A company is headed by the CEO / Directors / Owners
depending on its structure. Various levels of managers across
various functions report to the CEO / Directors. Supervisors
/ In-charges report to the managers and they manage the
operators (shop floor employees across various levels)
Pic: 1.1 - Various Levels of Employees

Ananth Palaniappan 5
internAl AnD externAl CustoMer
External Customer: A customer who buys the product /
services of a company. All the functions in an organization
exist to fulfil the needs of these end customers. This customer
is not a part of your organization but pays your organization
for the products / services.
Internal Customer: A member of the organization providing
goods / services to other members inside the organization. For
e.g. Stores issues raw materials to production. So Production
function is a customer for Stores. Inside Production function,
each operation sends the product to the next operation, thus
becomes a supplier to the next operation. These are called
Internal Customers and Internal Suppliers.
Pic: 1.2 - Internal Suppliers and Customers

6 Day One
goAls oF eACh DepArtMent
Each department works with a set of goals which are aimed
at satisfying / exceeding their Internal / External customer’s
needs. These goals are called Key Result Areas (KRA’s) or
Department Objectives / Targets.
Generally there are 6 major categories of objectives /
KRAs:
1. Productivity
2. Quality
3. Cost
4. Delivery
5. Safety
6. Morale
These KRA’s needed to be measured through various
Indicators. They are called Key Performance Indicators
(KPIs).For e.g.Productivity can be measured by indicators like
“output per person per day”, “Planned production vs. achieved
production”, “Utilisation of the machine”, etc. Similarly,
Quality can be measured by “Reduction in defectives”, “% of
yield”, etc.
All the departments will have KRAs and KPIs to measure
their performance. Generally there would be a Monthly
Review Meeting (MRM) to discuss the performance and take
corrective and preventive actions.

introDuCtion to proDuCtion FunCtion
ƒ Production is one of the most critical functions in any
manufacturing organization. This function represents the
set of activities through which the product is made and
delivered according to the client’s requirements.
ƒ Production function normally encompasses various
departments/shops based on the type of products and the
operations involved (e.g. press shop,machining,polishing,
plating, assembly etc.).
ƒ The components move from each shop/machine to
the other, once the required operations are completed.
(Sometimes the product would be stationary and all the
operations would be carried out on the product. E.g. Ship
building).
ƒ
addition) and transforms to a finished product.
Pic: 2.1 - Value Addition Processes

10 Day One
proDuCtion FunCtion
Department structure
ƒ This is a standard structure for Production Function
ƒ Production Manager reports to the CEO of the
company
ƒ In a large organization, Production Manager might
report to Factory Manager / Manufacturing Head
ƒ There can be a few Production Supervisors ( for
different lines / processes / shop floor) reporting to
the Production Manager
ƒ Each Production Supervisor would typically focus on
a single / specific processes or line
ƒ (A typical functional hierarchy is mentioned here. It
may vary according to each organization)
Pic: 2.2 - Organization Structure of Production Function

proDuCtion FunCtion
responsibilities of production Manager
ƒ Productivity - Achieving the production targets set by
the management / orders given by the customers through
optimum usage of the resources (men/materials/machine).
In some companies Production Planning would be done
by the Production Manager.
ƒ Quality - Meeting the Quality requirements set by
the customer and taking steps to exceed the quality
requirements
ƒ Cost – Minimizing cost ( reducing defects , process
modifications/improvements )
ƒ Delivery - Overall responsibility of delivering finished
goods as per the customer’s requirements – Ensuring
100% on-time delivery
ƒ Safety & Morale – Ensuring Safety of personnel and
improving Morale of the employees - by implementing
rewards and recognition for Attendance, Suggestion
Schemes, Performance, etc.

12 Day One
proDuCtion FunCtion
responsibilities of production supervisors
ƒ Planning for Production– Allocation of resources (Men/
Machine/Materials) properly so as to ensure smooth
production flow and delivery
ƒ Productivity – Ensuring a smooth production flow /
dynamically monitoring the production process and make
necessary changes to achieve production based on the
requirements
ƒ Quality – Measuring and analyzing the current quality
levels and taking necessary steps to improve and achieve
the quality levels set by the management
ƒ Cost – Taking necessary steps to reduce costs – reducing
defects / improving processes
ƒ Delivery – Ensuring 100% on-time delivery. Analysis of
delays in deliveries and improvement from the current
situations
ƒ Safety & Morale – Achieve 0% Accidents and
Incidents(Near-miss). Improving Morale of the personnel

how proDuCtion DepArtMent works?
process 1
ƒ Production Plan created by the Production Planning
department / Production Manager and it is sent to the
production supervisors
ƒ Production supervisors plan for the day’s production based
on the weekly / monthly production plan
Pic: 2.3 - Production Process 1

14 Day One
process 2
ƒ Order-wise requirements of all materials (calculated from
the Bill of Materials (BOM)) would be obtained from the
stores using Materials Issue Requisition (MIR) slip
ƒ Once the materials are obtained they are sent to the
respective process/machines for completion. The
Supervisor also creates a job card for each lot/item, which
travels along with the product throughout the entire
processes.

process 3
ƒ Producing right quality items is the responsibility of the
operators of the shop floor.
ƒ Quality is measured at each stage so as to reduce reworks
and rejections (however, please note, Inspection by a
separate inspector is a non-value added activity and has
to be eliminated. It might take a long time for a Small /
Medium size company to reach this goal)
ƒ At the end of the production process, necessary quality
checks are made and the products are packed and delivered
to the customers.
ƒ Please note this is only the basic process. There may be
delays/stoppages in production due to quality issues, non-
availability of materials, absenteeism, etc.

16 Day One
shop Floor MAnAgeMent
Daily production plan
ƒ Monthly Production plan is broken down into Weekly
and Daily production plan for each shop/operation by the
Production manager and sent to the respective Production
Supervisors
ƒ Production Supervisor should plan for one day’s
production in advance. i.e. tomorrow’s production plan
should be planned today by the individual supervisors
(before office closing hours)
ƒ Once the Production supervisors obtain the daily
production plan, they should plan & allocate the resources
( men,machine and materials) for the next day’s production
ƒ Resources and work allocation should be carried out in the
previous day evening
Pic: 2.6 - Production Plan Formulation

shop Floor MAnAgeMent
Daily production plan
ƒ Once the employees enter the shop floor, they should be
able to pick up the materials and start working. (If the
production plan happens in the morning, the company
loses around 20 minutes before employees are allocated
some job and start working).
ƒ Supervisor allocates the job to the right personnel and
follows it so that the production target for the day is
achieved.
ƒ In case of any changes in the plan, he/she consults with
the Production manager immediately and makes necessary
changes in the shop floor
ƒ He/she informs the employees and arranges materials
accordingly
ƒ At the end of the day, Production status is reported to the
Production Manager and the plan for the next day is done

18 Day One
best prACtiCes in MAnuFACturing
Communication: Supervisors can use Whiteboards to
update the daily production requirement. Operators can see
the whiteboards and start the production (without asking the
supervisors)
Team Work: Supervisors can create various teams in the
companies (across levels) for solving quality, productivity and
delivery issues. These can be cross-functional teams (from
various functions)
Daily Production Meeting: Supervisors should conduct a
daily / shift-wise production meeting at the start of the shift
(for 10 minutes). This meeting is between the supervisor and
the operators. In this meeting, supervisor explains the planned
production for the day, previous quality issues faced and how
to avoid them, any other updates from the company, etc.
Lean Manufacturing Principles: Supervisors should learn
and implement Lean manufacturing principles in the company
such as Single Piece Flow, 5S, SMED and many other tools.
Lean Manufacturing helps in improving the Productivity,
Quality and On-Time Delivery thus increasing Customer
Satisfaction. Some of the tools of lean manufacturing are
explained in the coming section.

leAn MAnuFACturing
What is Lean Manufacturing?
ƒ A systematic approach to identifying and eliminating
waste (non-value-added activities) through
continuous improvement by flowing the product or
service at the pull of the customer.
ƒ This is one of the most important knowledge a shop
floor manager or supervisor should know about
ƒ Lean Manufacturing would help in improving the
Productivity, Delivery and Quality of the products
and would help in reducing the costs
Pic: 2.7 - Value Added and Non-Value Added Activities

20 Day One
7 wAstes in leAn MAnuFACturing
Lean Classifies wastes into 7 major categories. They are listed
below:
1. Transportation
2. Inventory
3. Motion
4. Waiting
5. Over Production
6. Over Processing
7. Defects

1. trAnsportAtion
Definition
ƒ Any unnecessary material movement from one place to
another
ƒ Please note, whenever a material is transported from one
place to another, there is no physical or chemical change
happening in the material. So it should be considered as
a waste
how to spot this waste in the shop floor?
ƒ Presence of multiple storage locations
ƒ Multiple handling of materials
ƒ Conveyors, Extra carts, forklifts, dollies, material racks
ƒ Machines and processes not created for “Flow of the
Products”
ƒ Return of materials not used in production
ƒ Batch processing and WIP present in the shop floor

22 Day One
2. inventory
Definition
ƒ Any unnecessary supplies or materials that do not support
the ‘Just In Time Production System’
ƒ Note that whenever a material is stored as an inventory,
there is no physical or chemical change in the product. So
it is a waste
ƒ It is important to manage the inventory of a company as it
helps in better working capital management (more details
in Purchase Section)
ƒ However, the company may store higher inventory of
some critical materials (imported items / seasonal items)
ƒ Multiple stores in the unit
ƒ Extra space on receiving docks
ƒ Build up of material between processes (WIP)
ƒ Not using FIFO (first-in-first-out)
ƒ Extensive rework when problems surface
ƒ Additional material handling

3. Motion / MoveMent oF people
Definition
ƒ Any movement of people which does not add value to the
product
ƒ Note that whenever a person is moving to take a material
or a tool, there is no change in the material. So it is a waste
ƒ Work stations should be designed in such a way that all
the required tools and materials should be available to
the operator (hands-reach) without bending, climbing or
twisting his / her back
ƒ Searching for tools and parts
ƒ Excessive reaching or bending
ƒ Material too far apart (walk time)
ƒ Extra equipment for moving parts
ƒ Picking up things only to set them back down
ƒ Large batch sizes
ƒ Poor plant layout

24 Day One
4. wAiting
Definition
ƒ Idle time in which no value added activities take place
ƒ Person waiting for materials and machines
ƒ Machine waiting for materials and persons
ƒ Material waiting for machines
ƒ People watching machines run
ƒ Lack of concern for equipment breakdowns or downtime
ƒ Long setup times requiring WIP build-up
ƒ Due to unbalanced operations (difference in cycle times)
ƒ Inconsistent work methods
ƒ WIP between processes

5. over-proDuCtion
Definition
ƒ Producing more than required
ƒ ‘Work ahead’ than the “Internal customer”
ƒ Producing at a faster pace than needed, resulting in piling
up of materials as WIP
ƒ Inventory stockpiles
ƒ Extra or Over-capacity equipment
ƒ Unbalanced material flow and confusion about priority
ƒ Extra parts storage racks and manpower
ƒ Building stocks ahead of demand
ƒ Large lot sizes or batch processing

26 Day One
6. over proCessing
Definition
ƒ Effort which adds no value to a product or service
ƒ Work that can be combined with other processes
ƒ Enhancements that are transparent to the customer (not
valued by the customer)
ƒ Lack of clear customer expectations
ƒ Lack of customer input concerning requirements
ƒ Redundant approvals
ƒ Extra copies and excessive information
ƒ Inefficient policies and procedures
ƒ Multiple Tests
ƒ Multiple Inspections
ƒ Multiple Counting of materials at various stages

7. DeFeCts
Definition
ƒ Repairing a product to fulfil customer requirements
ƒ Reworking on the service, a customer asked for.
ƒ Extra floor space, tools and equipment - for reworking
ƒ Extra manpower to inspect, rework and repair
ƒ Additional inventory
ƒ Inconsistent quality
ƒ Large number of scrap / defectives in the shop floor
ƒ Incapable processes with excessive variation
ƒ Inadequate tools or equipment for measuring
These are the seven wastes present in any organization
according to lean principles. Many of these wastes can be
eliminated or reduced.

28 Day One
leAn MAnuFACturing
3 types of wastes (nvAs)
ƒ Muda: Non-Value Added Activities (7 wastes as explained
in the previous pages)
ƒ Mura: Process Variations / Inconsistencies in operations
ƒ Muri: Physical Strain / Fatigue caused to the people or
machines (by overloading, poor working conditions, etc.)
ƒ SomeoftheLeanToolsusedregularlyinthemanufacturing
units are given below. This book would cover only 5S in
detail. Few other tools are given a basic introduction
Pic: 2.8 - Lean Tools

5s - Five steps For better workplACe
MAnAgeMent
ƒ 5S is fundamental to all improvements
ƒ A set of five words starting with “S” – about good
housekeeping
ƒ Five steps to the culture of keeping the
work place clean, organized, systematic
and safe
ƒ A foundation for all improvements and
Lean Journey
ƒ Every employee is engaged and empowered.
ƒ Reveal the wastes and their causes in the process not seen
by observation.
ƒ To put it simply “Work Place Organization”
ƒ It is a Continual Process
Pic: 2.9 - 5S and its explanation

30 Day One
steps in iMpleMenting 5s
STEPS EXPLANATION
1S SORT Separate items which are required
and not-required. Dispose the
items which are not required
2S SET IN ORDER Arrange all the required items
based on the place of requirement.
“A place for everything and
everything in its place”
3S SHINE Clean your machines, workplace
daily. Follow a cleaning schedule.
Follow Preventive Maintenance
for machines
4S STANDARDIZE Ensure all the above 3 steps are
followed by all the employees
in the company. Create Visual
Indications, SOPs so that the
best practices don’t slip back to
original condition.
5S SUSTAIN 5S becomes a culture of the
organization. Regular audits,
training, competitions, rewards
and recognitions ensure that 5S
sustains in the organization.There
is no end to 5S and has to be a
part of continual improvement

1. sort
Removing unwanted items from the Workplace
ƒ Take Pictures of the area and display in a notice board
ƒ Include all the members in the area for segregating
required and not-required items in their workplace
ƒ All the unwanted items to be sent to a Red Tag Area
with a red tag mentioning the date, item name and
why it is not required
ƒ Senior Management to focus on disposing the items
in the Red Tag area
ƒ Items that are required only would go to the
subsequent steps
how to sort?
ƒ Determine red tagging criteria for all non-moving items
ƒ Designate red tag holding area in the stores separately
ƒ Identify person responsible for holding area
ƒ Obtain red tags
ƒ Talk to area workers
ƒ Perform red tagging and record tagged items in log book

32 Day One
2. set in orDer
Arrange the necessary items in a specific place (based on the
usage)
ƒ After Sorting out the unnecessary items, the needed
items have to be classified by use and arranged as
following:
ƒ To minimize search time and effort
ƒ To facilitate easy return and retrieval
ƒ Place each item in a designated address
ƒ In simple terms - “A place for everything and
everything in its place”

2. set in orDer
Few examples to show how the tools can be arranged near the
machines / Point of Use
Pic: 2.10 - Images for Set In Order

34 Day One
3. shine
Clean the machines, Shop floor and Inspection - Everyday
ƒ This involves cleaning the work place including
machines, tools, floor, walls and other areas
ƒ On cleaning, a lot of abnormalities like cracks, loose
nuts, bolts, oil leakage, loose wires, etc. can be detected
and rectified
ƒ Follow Preventive Maintenance Check list provided
by the Machine Manufacturer - as per the schedule
ƒ Cleaning is inspection and a health check
ƒ Clean your workplace everyday - for 10 minutes
ƒ Maintain a cleaning schedule at your workplace
how to shine?
ƒ Give 10 minutes every day (start and end of the shift) to
all the operators for cleaning the machines and the shop
floor
ƒ It is the responsibility of the shop floor employees to keep
the factory clean
ƒ Managers and Supervisors should also be present and
perform the cleaning in their respective areas

4. stAnDArDize
Follow the first 3 steps every day. Ensure all the employees
can easily follow the 3 steps by providing visual indications,
pictures, colour codes, etc.
ƒ Maintain all the above “3S” regularly by providing
Visual Controls, SOPs, Training and use of colours
for identification
ƒ This stage is when 5S become systematic and starting
to become the culture of the organization
how to standardize?
ƒ Each area would have a person responsible for 5S
ƒ Provide Visual Indicators in the shop floor
ƒ Give Colour coding for the tools / raw materials and WIP
items
ƒ “Before” and “After” pictures can be displayed
ƒ Standard Operating Procedures (SOP) to be created in
local languages and all operators have to be trained on the
same
ƒ Use whiteboards to display order status

36 Day One
5. sustAin
Follow the 4 steps every day. Conduct regular audits, internal
competition between different zones. Encourage participation
of the employees
ƒ 5S becomes a part of the every day work and becomes
a culture of the company
ƒ The greatest benefits of 5S are to help people to focus
and acquire Self-Discipline. People’s behaviour is a
reflection of the environment
ƒ Conduct regular 5S audits and recognise the teams
and give them rewards. Conduct 5S Slogan Contests,
Internal competitions, regular training to employees
(by employees)
ƒ Everybody should feel proud to take part in 5S
how to sustain?
ƒ Senior Management participation is very essential for the
sustenance of 5S
ƒ Regular discussions with the employees on improving 5S
in the factory
ƒ Displaying the 5S Audit results
ƒ Providing a healthy and safe work place

leAn tools - single pieCe Flow
Producing in Batches lead to high Work In Progress (WIP)
ƒ Single Piece Flow reduces WIP and improves Quality,
and generates more space.
ƒ Quality will improve in Single Piece Flow because,
internal customer immediately notices the defect
whereas in batch production, the defect is noticed
after the entire batch is produced.
batch production
single piece Flow production
ƒ Less WIP
ƒ Improvement in Quality
ƒ Less space utilization
Pic: 2.11 - Batch Production Vs. Single Piece Flow

38 Day One
leAn tools - single Minute exChAnge oF
Dies (sMeD)
ƒ In a single piece flow production, there is a need to quickly
change from one SKU/article production to another (delay
in changing over, reduces the overall output)
ƒ So the question is, how quickly can a change-over be done,
so that the line does not stop for long time?
ƒ Single Minute Exchange of Dies (SMED) is a tool helps
in reducing the change-over time between articles
ƒ Change-Over / Set-up time is the time taken between the
last good piece (of the previous article) to the first good
piece (of the new article).This includes the time taken for
checking the quality
how to do sMeD?
ƒ Take a video shoot of the current change-over process
ƒ Analyse the video (with the persons in involved in the
changeover)
ƒ Separate Internal and External activities. Internal
activities are done inside the machine (e.g. Tool change)
and External activities can be done outside the machine
(e.g. Arranging the tools required near the machine)
ƒ Reduce the internal activities and eliminate the external
activities
ƒ Practice and record the “Before” and “After” changeover
times and gradually reduce them to less than 1 minute

Mis reports
The list below explains the various MIS Reports to
be generated in the Production Function. Please note
this is only a guideline, List of MIS reports vary across
organisations.
report – 1
Report Name Monthly Production Report
Nature of Report Product-wise / order-wise
Frequency Monthly
Who Prepares it Production Supervisor
Analysis Points Whatistheachievementagainsttheplan?For
each product / product categories ? Is there
a trend that week-end production is higher
than other days? Last week’s production is
higher than other week’s production? Why?
How to avoid this in the future?
report – 2
Report Name Monthly Rejection / Rework Report
Frequency Monthly
Who Prepares it Production & Quality Supervisors
Analysis Points What is the rejection rate / rework rate?
Is this monitored frequently? What is the
pareto of defects? How long the major
defect is figuring in the list? When and
How, it will be resolved?

40 Day One
Mis reports
report – 3
Report Name Daily Production Report
Frequency Daily
Analysis Points
Achievement of day’s production vs.
plannedtarget.Arethereanybottlenecks
in achieving the target? If any product
does not meet the plan, move it to the
next days’ plan? Any quality issues
faced? How the issue is solved? What is
the corrective and preventive solution?
report – 4
Report Name Delivery Performance Report
Frequency Monthly
Analysis Points
What is the delivery performance against
the customer orders? How many orders
are delivered On-Time-In-Full (OTIF).
( OTIF means, all the customer’s orders
have been sent on time and the full
quantity ordered )

Mis reports
report – 5
Report Name Accident / Near Miss Report
Nature of Report zone-wise / operation-wise
Frequency Monthly
Analysis Points
How many accidents occurred in the
month? How many near-miss happens in
a month? Are they being recorded? How
to eliminate the accidents in the future?
Corrective and Preventive Action?
report – 6
Report Name 5S Audit Report
Nature of Report 5S scores of various zones
Frequency Monthly
Analysis Points
Are the shop floors looking tidy and
clean? Is it visibly managed? Is the area
free of dust? Are the machines cleaned
daily?

Level One - Unlock Your Career in Manufacturing - Sample

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