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Case Study of Pump Mfg. Company
Title: Lean Journey from Changodar to Colombo
Presented
on 2nd Feb 2015
@ 3rd Annual Lean Conference,
AMA, Ahmedabad
M/s. Waterman Industries Private Limited,
Ahmedabad, Gujarat, India
WEL COME YOU ALL
Lean Manufacturing for Productivity Enhancement
Mr. Bharat B. Patel
Managing Director
15 – 17 Dec 2014
Colombo, Sri Lanka
Dealer strength – 750 Nos.
• We have stock points in all over India with a strong
dealer network under them
WATERMAN
MANUFACTURING
PLANT AT
AHMEDABAD,
GUJARAT, INDIA
WATERMAN –
MAJOR STOCK
POINTS IN
DIFFERENT
STATES OF INDIA
WATERMAN
PRODUCTS –
EXPORT
COUNTRIES
Challenges before Lean
Space constraint
2 different manufacturing locations (Upper Floor & Lower
Floor)
High inventory
Pending order, late delivery, Urgent material requirement
High Manpower
No choice only Lean Training & Implementation
Lean Implementation Scheme by the Govt. of India
• We have participated in Pump Manufacturers’ Cluster
• We have paid Rs. 38,000 ($ 633) and balance money was
paid by the government Appointed M/s. ADDVALUE
Consulting Inc., India as a lean manufacturing consultant
and Its team has helped us to implement lean
manufacturing.
• National Productivity Council (NPC) directors visited us
frequently to audit the progress and given time to time
suggestion for improvement.
TOTAL LEAN MANAGEMENT ATTACK MUDAs
Identify Reduce
Eliminate MUDAs
thru
VALUE ADDING
WORKSHOP (VAW)
World Class, Lean, Fit,
Competitive &
Sustainable Organizations
Unawareness of
Lean Management Tools Muda of Transportation Muda of Motion
Muda of Waiting Muda of Rejection Muda of Over Processing Muda of Inventory
Muda of Over Production Muda of Unused
Human Potential
Creating World Class Organizations
Creating Lean Foundations through TOP Management Commitment & 5S
Creating World Class Organizations = “TOTAL LEAN MANAGEMENT”
TFM TPM TQM TSM THM
SUPPL I ERS
CUSTOMERS
TOTAL
FLOW MANAGEMENT
TOTAL
PRODUTIVE
MAINTENANCE
TOTAL
QUALITY
MANAGEMENT
TOTAL
SERVICE
MANAGEMENT
TOTAL
HUMAN
MANAGEMENT
Identify, Reduce & Eliminate Muda (Waste) Continually– across the Value Chain
Focus
on
Quality, Cost
& Delivery
Focus
on
Quality, Cost
& Delivery
ADD VALUE Through
TOTAL Employee Involvement (TEI)
Continual Process Improvements
Zero Defects Application of Lean Tools
( AVCI- 9 steps)
Lean Tool implementation in our company
• 5S
• On first day, we have removed absolute and
unwanted material and recovered Rs. 3,60,000/-
($ 6000/-) from the scrap
• Arrangement of raw material pick up by own
vehicle
• Total Flow Management (TFM)
• Visual Management
Roadblocks we faced and how we tackled it
No Type of Waste Issues Our action
1 Space and cleanliness
We have space constraint on ground floor
We have removed absolute material and machineries
2
Transportation of material and worker
As company has 2 different manufacturing locations, Upper Floor & Lower Floor. It is observed considerable transport of the resources (material & worker)
We have shifted first floor factory to ground floor
3
Inventory of Rs. 3.25 cr
Company keeps enormous amount inventory to support its manufacturing process. This area has considerable opportunity of improvements.
We have purchased ERP software and reduce raw material, semi-finished and finished stock
4
Over production and man-power utilisation
Separate machine shop and winding department for 4” and 6” submersible pumpsets. Hence, man-hour was wasted during off season of each product.
We have combined machine shop and winding department for 4” and 6” submersible pumpsets for utilisation of man-power in both the department even in off season.
5 Visual Management
Pending order, late delivery, urgent material requirement
Oldest pending order board and Urgent raw material requirement board
Visual on Waste Reduction
Two-bin system
Visual on Oldest Pending Orders and
Urgent requirement
Photographs after implementing Lean Manufacturing
Photographs after implementing Lean Manufacturing
Next-to-next process Material at work place with two bin system
Next-to-Next process Empty space on first floor
Dept. wise - 5S Score-card Scrap Area defined
Palette for C.I. Parts Weight with trolley
Photographs after implementing Lean Manufacturing
Straight Gang-way Gang-way at machine shop
Photographs after implementing Lean Manufacturing
Stock level display board, Workmen will use only green tag
material from the rack.
Photographs after implementing Lean Manufacturing
Ancillary Hub Located only 1 Km away from our company
Six sheds are available exclusive for WATERMAN labour vendor
(Muda of Transportation reduced from 25 km to 1 km)
Major Benefits to our company through Lean
(Financial and Non-Financial)
• Smooth production flow
• Quick traceability of jobs, manpower etc.
• Multi skill manpower develop,
• Single point supervisory,
• Manage work-in-process (WIP),
• Small batch production,
• Space & man power saving,
• Reduced delivery time,
• Reduced rework etc…
Benefits
Sr. No.
Parameter Before After Benefit
1 Production/ Productivity
1000 Pump (V3, V4)
1200 Pump (V3, V4)
Production Increased By 20%
2. Space Utilized 6000 Sq. Ft. 2500 Sq.
Ft. 58% space saving
3. Rework Reduction Rework reduced by 30%, This has increased the Throughput time (TPT) by 8 to 10%
4. Manpower 185 150 Rs. 42 Lakh
($ 70,000)/ Year
5. TOTAL TPT
Total throughput time has been reduced. Earlier company was making 1000 pump/month(V3,V4). At present production is of 1200/month. Hence, production is increased by 20%.
Key Learning
Purchase & Manufacturing as per demand
Material & Information flow should be synchronize
5S is the fundamental
Strategy for Lean Sustenance
• Top Management commitment
• Training
• Faith on Lean Management
• Team for Lean
• 5S (Cleanliness) competition
• Motivation for Kaizen activity
• Audit
