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DEPARTMENT OF MECHANICAL ENGINEERING
FOPG-MEFGI
Rajkot-360002
DECLARATION
We, hereby declare that the project report, for the project entitled “product &
process development by lean manufacturing techniques” submitted in partial
fulfillment for the degree of Bachelor of Engineering in Mechanical of
Gujarat Technological University, Ahmadabad, is a bonafide record of the
project work carried out at Marwadi Education
Foundation’s Group of Institutions under the supervision of Prof.Dhaval
Anadkat and no part of any of this report has been directly copied from any
students’ reports or taken from any other sources, without providing due
references.
Date:
Place:
Yash Shanishvara 131160119588
Jigar Savaliya 131160119584
Avanit Vekariya 131160119609
Signature
Although we have spent numerous hours to complete this report, but would
like to take privilege to thank all those wonderful people who guided us,
without whose help it would be possible to reach at this stage.
I would like to thank, H.O.D. Dr. Ramesh Bhoraniya, all faculty members
and staff of the Mechanical Engineering department, MEFGI. I am also
thankful to my friends and classmates for their support.
First of all, a special thanks to our final year project guide, Prof. Dhaval
Anadkat, Assistant Professor, Mechanical Engineering Department whose
help and encouragement helped us to coordinate our project. It is really our
privilege to work with him.
We would also like to acknowledge with much appreciation crucial
role of staff of MAC Power CNC who gave permission to use all
required information and necessary guidance for our project.
We would also like to take the platform to appreciate the guidance given by
other supervisor as well as project panel in our project presentation that has
improved our presentation skills by their comments and tips.
Last but not the least; we would like to thank our family members. Whatever
we have achieved in our life, we owe to them. They never let us see through
the numerous sacrifices they have made and the hardships they went through
for us.
DECLARATION 2
ACKNOWLEDGEMENT 3
ABSTRACT 4
CHAPTER1: INTRODUCTION 8
1. PROBLEM STATEMENT 9
2. PROJECT AIM 10
3. OBJECTIVE 11
1. LEAN MANUFACTURING 12
3. JUST IN TIME 16
CHAPTER 6: CANVAS 41
CHAPTER 7: CONCLUSION 44
REFERENCES 46
List of Table
MAC Power CNC is a national company, originally found in India, that manufactures and
designs machine tools. Their manufactured CNC & VMC with wide range, over the
years, since their existence they expanded all over the India with many number of Sales
office in Rajasthan, Mumbai, Delhi, Gujarat, Chennai, etc.
MAC Power CNC situated in Rajkot, Gujarat is a main division the main focus of
company is to manufacture CNC and VMC machine for local and national customers.
The company operates mainly in a Make-to Order environment, but because of the
customer support division they use forecasting models for most of the main parts they
order and distribute. Another big factor is that, although they operate in a make specially
environment, numerous critical parts used in the manufacturing process have long lead
times, which makes it extremely difficult to monitor and control.
For MAC Power CNC to compete and successfully manage the rapid expansion, they
need to look at lean principles such as JIT, JIS, Kanban, 5S, SCOR and technology
approaches such as bar coding. Briefly explaining the principles mentioned above will
have the following effects on MAC Power CNC and is the reason why it will be worth
their while to implement them.
• JIT will ensure MAC Power CNC that the products will only be on the premises
when required to complete the production process for that specific task, and at that
specific time. This can have a substantial impact on the inventory management. It
will reduce a lot of unnecessary line side inventory that will in turn create more
space for manufacturing, as well as bring forth improved inventory management
control.
• The JIT methodology will be driven by Kanban system, which implies that orders
and buyoffs of products is managed using signs to expedite or order new product.
This is a simple method that will be defined in detail in the literature study.
• The 5S principle will ensure that all the tools, parts and equipment have a
dedicated location. Besides that, all these tools, parts and equipment has a
dedicated location it must always be visible, well organized and in the assigned
location. The 5S method will make it easy to note when something is missing or
in the wrong place and can be addressed as quickly as possible.
Thus implementing Lean Manufacturing principles can lead to manage MAC Power
CNC’s current expansion and further improvements might also be obtainable on a long
term basis project.
Over the last few years MAC Power CNC has experienced rapid expansion and increased
demand levels. However, their current processes can no longer cope with the increase in
customer demand. Because their processes are over constrained and insufficient with the
increase in customer demand, they are experiencing the following problems in the
organization:
The project aim is to evaluate & analyze a MAC Power CNC’s current business policies,
processes and procedures about procurement and material handling. After the current
processes have been charted, formulated and evaluated, proposals to restructure these
procedures using Lean Manufacturing method will be formulated, evaluated and
implemented. The main purpose of implementing Lean Manufacturing principles will be
to reduce the number of line side stock, reduce superseded stock increase the material
expediting processes, increase quality. This will lead to great economic savings per
machine.
Because there are numerous definitions for Lean Manufacturing (LM), we will only use two
different definitions and then elaborate on the concept of the Lean Manufacturing.
• Continuous elimination of all waste resulting in a system of value added activity (Internet:
Best Management Articles).
• Lean Manufacturing is the art of raising quality, lowering costs, improving delivery,
generally becoming competitive by removing waste and concentrating on activities that add
value for the customer.
From these definitions and the literature study that was conducted on Lean Manufacturing, it was
clear that the main objective was to eliminate waste in all processes to improve an organization as
a whole. The waste they refer to is not just on the production floor, but in reality it needs to be
eliminated throughout the whole organization from finances, Human Resources, Logistics, IT and
especially top management.
Another aspect that is clear from Lean manufacturing is that it has a culture. For Lean
Manufacturing to work, everybody must believe in it and really pursue it from the top down -
from management to floor workers. But it doesn’t stop their either, because for lean
manufacturing to work you also need to take your suppliers and networks into consideration and
make them part of the dream as well. You need to form long term relationships with them to
improve factors such as quality. This will be discussed later when we look at just-in-time.
If everybody does not truly believe in lean manufacturing, and that it will be beneficial to the
company but also to them individually, implementing lean manufacturing will be very difficult
and the right results will not be obtained. In fact, even worse results will be obtained because it
requires 100% commitment and a passion from everyone involved.
To put more emphasis on the importance of everybody’s commitment and involvement to make
lean manufacturing work, we look at: The 4P model First of all the model shows that lean
manufacturing has a culture and a philosophy, and that it needs everybody’s participation, as well
as continuing to constantly strive to improve in all aspects of the business.
We previously said that Lean Manufacturing primarily focuses on eliminating waste. There are
currently 8 different types of wastes identified by the pioneers of Lean Manufacturing and they
are listed below:
1. Overproduction: Producing parts or components which there are no customer orders for,
which results in unnecessary holding costs, raw materials used, labor costs etc.
4. Over processing or incorrect processing: Parts that needs to be reproduced due to wrong
tooling equipment, failing parts, producing a wrong manufactured goods at the wrong
time.
5. Excess inventory: Excess raw material, WIP or finished goods causing longer lead
times, obsolescence, damaged goods, transportation and storage costs.
6. Unnecessary movement: Wasted motion where workers have to look for tools or
material, searching for lost material as well as materials that are moved from one place
to another unnecessary.
8. Unused employee creativity: Losing time, employee ideas and creativity by not engaging
with your employees.
Implementing lean will lead to strategic benefits to an organization. In table 1 it is stipulated how
lean principles can lead to strategic benefits, as well as what these benefits are.
A more detailed discussion of “what” and “where” some of these principles will be applicable to
the project at MAC POWER CNC will be discussed later.
By, MikelSorli, Marco Taisch, Ahmed Al-Shaab, John Keast, Myrna Flores, DraganSkotic, Leire
Martinez,AmaiaSopelana,
In this context, it is important to note that a composite design product cannot easily be
“leaned out” in manufacture stage. Hence the production of affordable and sustainable
products would require an effective lean design and engineering. Lean design and
development still lacks of a frame which integrate and advance different approaches and
techniques developed in the literature. Author of this paper think that there is a need of a
new model that assures the acceptance of lean thinking throughout the entire product life
cycle from the design and development stage.
The objective of this paper is to give details about how the research project called Lean
Product and Process Development (lean ppd) is contributing to close the gap between
product and process. The lean p p d model to be developed considers four main blocks
which allows the success of the future model: lean self-assessment tool, product
The related literature of lean product development research has shows that the research
community has made a small progress in address lean aspects of the product and process
development. In addition, the previous research into lean has not addressed the
applications of knowledge based engineering nor provides solution on the evolving issue
of product development value mapping to show up value creation throughout the
development process. It is left behind a lack of techniques to provide a route by which
lean thinking could be integrated into existing product design and development in
different sectors.
The paper provides a unique review of the lean Product Development study area, and a
reference construction for the enablers that Toyota has employed for lean Product
Development. An research of five engineering enterprises undertaken to search for facts
of the implementation of lean Product Development enablers through observation,
document analysis and interviews is also presented. Some enablers have been casually
applied, while few have been officially implemented, and no model was found to
officially combine Lean Product Development enablers into a coherent whole. This is the
first paper to analysis attempts to describe lean Product Development and provide a
definition for Lean Product Development.
This shows that there is a need to demonstrate the conceptual Lean PPD model and assess
its impact on product development. If a lean Product development model is developed
which addresses the current challenges faced by industry, companies may consider
adopting it. Through our interactions with industry we have identified a keen interest in
the arrangement of the core enablers. The companies did not want to be provided with
isolated tools; rather they would prefer to implement lean product development using
their existing tools and methods.
Just-in-Time (JIT) is one of the most important principles of lean manufacturing and is
one of the many method a lot of companies strive to apply and achieve.
We first need to start by gathering a clear narrative and definition of what Just-in-time
(JIT) actually is. Everybody seems to know the “buzz word” JIT, but not everybody
really understands what it is all about.
The main objective and driving force of JIT is to reduce waste by improving the way
an organization manages their inventory, and applying JIT management principles.
These principles can be summarized as follows :
The first principle states that lot sizes should be cut, while the most of the organizations
in industry use the popular EOQ model. Economic order quantity (EOQ) models are used
to determine the size or lot quantity that should be ordered at a time at an optimal cost.
The formulas for basic EOQ models will be shown and compared with modified
JIT/EOQ models in this section.
Even if we take into account all the costs involved and the carrying costs of raw material
is not consistence with the JIT principle. For example, a firm might order a lot size of 20
units to manufacture 10 units over a production phase of 1 week. This means the firm
only produce 1 units/day or 5 units/ week. This example of EOQ modeling contradicts the
JIT principle because the firm will have 10 units of raw materials, which they are not
going to use for another week. This increases inventory levels, reduce space capacity and
increases work load of material handlers without cause.
Another major concern for these models is that they are connected to a Master Production
Schedule (MPS), the planning manufacture rate over a stage of set time. But it does not
Product & Process Development by LM techniques Page 16
keep track of the real progress of the MPS and the production rate. If production falls in
the size of delay EOQ lot size will still be ordered, regardless of whether the previous
ordered raw supplies for that job is actually consumed. This creates unnecessary excess
inventory. If the production is in front of the expected lack of material it will be tested.
Using these example over describes JIT at its best, because it will decrease the inventory,
increase productivity and decrease lead times needed for supplies. This is because of
materials will only be used when they are required. This is achieved by application of
Kanban systems. Kanban is the soul and powerful mechanism for JIT and will be
discussed in the next chapter.
Modifications to the EOQ models were made to make them more appropriate for the JIT
location and were labeled JIT/EOQ models. The formulas for both models are shown and
compared below.
*
EOQ ORDER QUANTITY (Q ) =
2 2
0
22
EOQ TOTAL ANNUAL COST (T ) = √
*
Where: Q = cost minimizing order quantity in units under EOQ
system O = ordering costs in per order
D = annual demand in units
0
T = minimized total annual cost in rupees under EOQ
system C = carrying costs in per unit
P = purchased cost per unit
The last point of the JIT principles, seek reliable suppliers, is one of the most important
principles for the implementation and success for JIT systems.
This principle puts emphasis on long term relationships with suppliers. Long term
relationships with suppliers will have one of the biggest impacts on the success of any
To achieve this is not an simple task, but is well feasible. This can be achieved by
creating and conducting training of JIT programs for all the suppliers by expert in your
own industries and consultants. The main purpose is that they need to understand the
reason for change and the advantages and rewards that can be obtained and how it is
helpful for both. This can all be planned for and integrated in the training and seminar
sessions with the suppliers.
If successful training is reached out to your suppliers it will have a chain reaction in the
Supply chain network. It is important to know from a Logistical and supply chain view
that your suppliers have suppliers and their suppliers have suppliers, so the supply chain
does not have with your suppliers and ends with your customers. It is stretched beyond
that. A diagram illustrate this theory is shown below.
3.7. AUTOMATION
One of the rules in a production environment JIT and lean is that only automates when
the machine can do a better job and more accurate than humans. This applies to highly
tedious and repetitive work like spot welding in the automotive manufacturing firm. Do
not automate for the sake of automation. Not automate for the benefit of automation.
Humans have a great sense of freedom on any machine or robot, where you can think of
to solve a problem unplanned; machines do not have this ability.
3.8. QUEUEING
When the materials are handled badly and excess inventory has been living in a hotel,
queues tend to form in places other than deposits to the production plan. When queues
3.9. 5S
5S refers essentially to the basic rules of cleanliness.. The term 5S is assigned simply
because it is made up of five Japanese words everything from a 5 S. The key words and
their meaning is described in the following table: 5S WORDS AND DECSCRIPTIONS
Table 2.1 5s Words and Descriptions
SEIRI ARREGMENT
SEITON ODORLESS
SEISO CLEANNESS
SEIKETSU CLEANUP
SHITSUKE DISCIPLINE
Applying 5S will mean that every part / tool / equipment will be in his assigned space so
neat and clean. After a round or specified time and the task everything is clean and still in
place. And this is applied consistently with discipline.
5S- primarily reduce the high installation costs and reduce delivery times to set the cost
to perform tasks. This is achieved by eliminating the time operators need to look for tools
/ material / equipment to carry out their tasks, applying the principle of 5S.
5-S is used to create more organization in the workplace. It is most often applied on a
workstation by workstation basis to systematically improve flow. The idea is to start by
sorting out all the tools and parts necessary to do a specific job.
The philosophy of the 5S has its roots in Japan. Name 5S is the acronym of five Japanese
words of the following meanings:
Fig.4.2 5S CIRCLE
Through rigorous efforts and teamwork we were able to implement the basics of 5s at our
workshop.
The purpose of 5 S is to assure that everything has a place or is accessed and everything
is in its place. Through rigorous efforts and teamwork we were able to implement the
basics of 5s at our workshop.
SORT
Remove what is not absolutely necessary for production in the immediate future In
this we have to eliminate the material which is not required at the working hour.
This will not create hindrance in the smooth running of the operations.
We may identify a large area devoted to tools or gauges, some of which are needed
regularly and some used infrequently. This brings all sorts of problems, including:
➢
Operators unable to find the item they need, being unable to see wood for trees.
➢
The time spent searching is a waste (or in Japanese speak a muda) and if we only held the
items needed regularly in a prominent position we would save time.
➢
Quality issues when gauges are not calibrated on time because too many are held.
➢
Safety issues when people fall over things.
SET IN ORDER
Set in order is the series of steps by which the optimum organisation identified in the first
pillar are put into place.
➢
AFTER 5S
The principle here is that we are all happier and hence more productive in clean, bright
environments. There is a more practical element in that if everything is clean it is
immediately ready for use.
Other issues are health and safety (perhaps slipping in a puddle of oil, shavings blowing
into people's eyes) and machine tools damaged by coolant contaminated by grease and
dust.
Sometime should be set aside for cleaning each day, or each shift. We may have cleaners
who come in a sweep office floors, and even clean the floor in a production area, but they
do not clean the production equipment. Even if they did, this would miss one of the
opportunities available - an operator cleaning and lubricating his machine tool will spot
worn or damaged components.
The first is the assignment map which identifies who is responsible for which areas.
The second is the schedule which says who does what at which times and on which days.
STANDARDIZED
The fourth pillar is the introduction of a formal, rigorous review programme to ensure
that the benefits of the approach are maintained.
BEFORE STANDARDIZED
This is best described as Standardized cleanup, but other names adopted include
Standardization (not to be confused with the second pillar), Systematization and
Sanitation For example, are the storage areas still clearly defined? Does the tool rack still
have clear outlines or profiles for each tool to be stored in it? Does the area meet the
general standards of cleanliness?
SUSTAIN
The final stage is that of Discipline. For those who wish to retain the use of initial S's in
English this is often listed as Sustain or Self-discipline
The fifth pillar is more than this; it is not simply the mechanical means by which we
continue to monitor and refine, it is the set of approaches we use to win hearts and minds,
to make people want to keep applying best practice in shop organisation and
housekeeping.
Root Cause: The cause that, if corrected, would prevent recurrence of thousand similar
occurrences. The root cause does not apply to this occurrence only, but has generic
implications to a broad group of possible occurrences, and it is the most fundamental
aspect of the cause that can logically be identified and corrected. There may be a series of
causes that can be identified, one leading to another. This series should be pursued until
the fundamental, correctable cause has been identified. For example, in the case of a leak,
the root cause could be management, not its maintenance, which ensures that it is
effectively managed and controlled. This cause could have led to the use of improper seal
material or missed preventive maintenance on a component, which ultimately led to the
leak.
Causal Factor: A condition or an event that results in an effect (anything that shapes or
influences the outcome). This may be anything from noise in an instrument channel, a
pipe break, an operator error, or a weakness or deficiency in management or
administration. In the context of DOE there are seven major causal factor categories.
These major categories are:
➢
Equipment/Material Problem
➢
Procedure Problem
➢
Personnel Error
➢
Design Problem
➢
Training Deficiency
It is one of the many brainstorming methodology of asking “why” five times repeatedly
to help in identifying the root cause of a problem. If a problem is repeatedly questioned,
each time an alternative solution comes out which is linked to the root cause.
However, asking why may be continued till getting an agreeable solution. Five is an
arbitrary figure. The theory is that after asking ¡§why¡¨ five times one is likely to arrive at
the root cause.
➢
Steps in Cause and Effects Task Analysis are as follows:
➢
Obtain preliminary information so that one may know that what the
➢
person was doing when the problem or inappropriate action occurred.
Decide on a task of interest.
➢
Obtain necessary background information.
➢
Obtain relevant procedures
➢
Obtain system drawings, block diagrams, piping and instrumentation
diagrams, etc.
➢
Interview personnel who have performed the task to have an understanding
of how the task should be performed.
5.3.2 Change Analysis
Change Analysis looks at a problem by analyzing the deviation between what I expected
and what actually has happened. The evaluator essentially asks about the difference that
has occurred to make the outcome of the task or activity as compared to that of all the
other times this task or activity was successfully completed.
Given condition. Some amount of redundancy exists in the questions to ensure that all
items are addressed. Several key elements include the following:
➢
Consider the event containing the undesirable consequences. Consider a
comparable activity that did not have the undesirable consequences.
Compare the condition containing the undesirable consequences with the
reference activity.
➢
Set down all known differences whether they appear to be relevant or not.
➢
Analyze the differences for their effects in producing the undesirable
consequences. This must be done in detail with careful attention, ensuring
that obscure and indirect relationships are identified (e.g., a change in color
or finish may change the heat transfer parameters and consequently affect
system temperature).
➢
Integrate information into the investigative process relevant to the causes of,
or the contributors to, the undesirable consequences.
Root cause analysis is defined in the Canadian Root Cause Analysis Framework1 as “an
analytic tool that can be used to perform a comprehensive, system-based review of
critical incidents. It includes the identification of the root and contributory factors,
determination of risk reduction strategies, and development of action plans along with
measurement strategies to evaluate the effectiveness of the plans.”
To improve product quality and productivity, the analysis team proceeds through a series
of probing questions focused on answering “why” and “caused by” questions to delineate
the various factors that contributed to the event and which, if left unmitigated, could
contribute to another event. The focus is on systems and processes and their interaction
with individuals, with the understanding that the individuals involved did not
intentionally act to cause harm, and given the same set of circumstances, the outcome
would be the same for any individuals involved.
Relevant literature and practice standards are considered in formulating recommendations
and actions. To make it understand the significance of such a system enhancement, it has
In the above sample study, it was found that the non-value adding activities were higher
than the value adding activities.
Table 5.3 Possible causes of root cause and its expected outcome
➢
The 5S methodology relies on the creation and keeping well organized,
clean, high effective and high quality workplace.
➢
The 5S program is also an excellent ice-breaker for organizations that have
entrenched resistance to change.
➢
The 5S program provides a kick start. with such substantial positive benefits
to both the employees and employer that the.
➢
5S implementation more than pays for itself while creating a positive
climate for further change.
➢
If company would implement six sigma then customer complaint would be
reduce in GX-100
➢
If company remove defects as listed above then time reduces and
productivity will be improved.
➢
Implementation Of Lean Manufacturing In Computer Integrated
Environment
By Rahul 1 and J. S. Kaler
➢
Implementing Lean Manufacturing Principles In A Manufacturing
Environment
By James Keyes,jh.D
➢
(Leanpd) Towards Lean Product And Process Development
By Muhammad Khan, Ahmed Al-Ashaab
➢
Supply Chain Excellence : A Handbook For Dramatic Improvement Using
The SCOR Model
By Bolstorff, P. & Rosenboom, R.
➢
Best Management Articles
By Wright C.
➢
J. Petersen, “Defining lean production: some conceptual and practical
issues” in TQM Journal, 21(2), 2009, pp. 127–142.
➢
J. P. Womack, D. T. Jones, Lean thinking. Free Press, 2003.
➢
T. Ohio, Toyota Production System. Free Press, 1998.
➢
S. A. Ruff, Going Lean. AMACOM, 2008.
➢
C. Pirellis, B. Rosin ski, 5S Implementation Manual: Starting Lean
Manufacturing. W Publications, 2007.
➢
S. S. Chakravorty, “Six Sigma Programs: An Implementation Model” in
International Journal of production Economics, 119(1), 2009, pp. 1–16.
➢
www.wikipedia.org
➢
www.google.com
➢
Dalgobind Mahto; Anjani Kumar, “Application of root cause analysis in
improvement of product quality and productivity”