a study on the effectiveness of lean manufacturing practices in msme

Research Topic

A Study on the effectiveness of lean Manufacturing Practices in

Micro, Small and Medium Enterprises (MSME) through Cluster

Approach

Submitted by:

Jaspreet Singh

Uni. Roll No.:1176171

SID:- 0711-0027

1

A Study on the effectiveness of Lean Manufacturing Practices In MSME through Cluster Approach

Introduction of Lean Manufacturing.

A Study on the effectiveness of Lean Manufacturing Practices In MSME through Cluster Approach2

• An operational system that maximizes Value Added, reduces

Essential Support and eliminates Waste in all processes

• A good understanding of waste and value and a set of tools and

techniques to eliminate the waste from system are very crucial to

create a lean Enterprises.

Tools of Lean

5S, Waste Identification & Elimination, Kaizen, S.M.E.D.(Single Minute

Exchange Die), Poka Yoke, Single Piece Flow, Value Stream Mapping ,

Visual Management.

Definition of Research Problem

“A study on the effectiveness of lean manufacturing practices in

Micro, Small and Medium Enterprises (MSME) through cluster

approach.”

The organizations were engaged in the Cluster Programme. Lean

Manufacturing tools and technique were applied by them in their

respective industries.

3


Objective of the research.

To See the effectiveness of Lean Manufacturing practices?

What are the potential benefits been achieved by them?

Various factors responsible for the Adoption of Lean Manufacturing Practices ?

Reasons for being not be implemented in Some Industries?

4


Designing of Research

Study is carried out in 33 industries, Who had implemented lean.

A key person was selected from each of these 33 industrial units for

getting information on various aspects of the lean manufacturing

practices and techniques.

Questionnaire was the tool used for collecting the data.

Data is analyzed through the SPSS, Micro soft Excel and some where

manually too.

5


Sampling design

Sample Size:- Sample Size was 33 industries , Concerned person

was selected from those industries.

It was a Judgmental sampling technique.

6


Measurement used

Mean

Variance

Standard deviation.

ANOVA’s

Chi-Squared Test.

7


Method adopted for data collection

Method Adopted for Data Collection was a structured

Questionnaire comprising the four sections as follows:

Perceptions about lean

Factors influence for adoption of the lean

potential benefits been achieved

Why it can not be implemented in some industries.

8


Results.

9

How do you perceive the lean Manufacturing concept ?

A Study on the effectiveness of lean Manufacturing Practices through Cluster Approach

Table 1:- Mean score on different perceptions of the Lean Concept.

Different Concept of lean Average of Responses receives.

Improvement Project (I.P) 1.39

Complexity of technique (C.T) 3.52

Only a training Not Implementable 3.8

Piecemeal Approach (P.A.) 3.85

Time Waste Activities(T.A.) 4.36

1- Strongly Agree, 2- Agree, 3- neutral, 4- Disagree, 5- Strongly disagree.

1.39

3.523.8 3.85

4.36

0

1

2

3

4

5

I.P C.T N.I P.A T.A

Me

an

Rati

ng S

cale

Industrial Perception About Diffrent Concept of Lean

10

Factors responsible for adoption of lean manufacturing Practices in different types of industries.

Table:-2 One way Variance analysis had been done on the responses received.

Factors

Responsib

le for lean

Type of Industry

Micro

Scale

Small

scale

Medium

scale

P.R.F. 3.99 4.12 3.875

C.D.F 4.22 4.22 4.167

P.F. 4.47 4.36 3.33

M.R.F. 4 4.2 3.5

3.994.22

4.47

44.12 4.216 4.364.2

3.8754.167

3.333.5

0

1

2

3

4

5

P.R.F. C.D.F P.F. M.R.F.

Micro scale Small scale Medium Scale

1- Strongly Disagree, 2- Disagree, 3- neutral, 4- agree, 5- Strongly agree.

Lower

Bound

Upper

Bound

1 21 3.9940 .32948 3.8441 4.1440 3.25 4.50

2 10 4.1250 .30619 3.9060 4.3440 3.63 4.50

3 2 3.8750 .17678 2.2867 5.4633 3.75 4.00

Total 33 4.0265 .31678 3.9142 4.1388 3.25 4.50

1 21 4.2302 .35542 4.0684 4.3919 3.33 4.83

2 10 4.2167 .43780 3.9035 4.5298 3.50 4.67

3 2 4.1667 .23570 2.0490 6.2844 4.00 4.33

Total 33 4.2222 .36720 4.0920 4.3524 3.33 4.83

1 21 4.4762 .65465 4.1782 4.7742 2.00 5.00

2 10 4.3667 .33148 4.1295 4.6038 3.67 5.00

Total 33 4.3737 .61100 4.1571 4.5904 2.00 5.00

1 21 4.0000 .70711 3.6781 4.3219 2.50 5.00

2 10 4.2000 .94868 3.5214 4.8786 2.50 5.00

Total 33 4.0303 .80951 3.7433 4.3173 2.50 5.00

N Mean

Std.

Deviation

Maxim

um

prf

cdf

pf

mrf

95% Confidence

Interval for Mean

Minimu

m


11

Which Tools and Techniques used by Companies?

Tools used by companies No. of companies that used these tools

5S 32

W.I&E:- Waste identification and elimination 11

V.M.- Visual management 17

V.S.M- Value stream Mapping 0

T.P.M.- Total productive maintenance 1

S.M.E.D.- Single Minute exchange die. 26

Takt Time 0

S.P.F.- Single Piece flow 9

PokaYoke 7

Kaizen 33

Table:- 3 Shows that tools and techniques used by the Companies

• Chi squared test were tried here.

• Data received was not up to the

expectation. So Chi-Squared Test does

not applied.


12

Tools and Techniques used by Companies – Type of Industry wise.

Tools/TechniquesType of industry.

Micro scale Small scale Medium scale

5S 21 10 2

W.I.E 5 5 1

V.M 10 6 1

V.S.M 0 0 0

T.P.M 0 0 1

S.M.E.D. 13 11 2

T.T 0 0 0

S.P.F. 7 2 0

Q.F.D. 0 0 0

P.Y. 3 3 1

Kaizen 20 10 2

21

5

10

0 0

13

0

7

0

3

20

10

5 6

0 0

11

02

0

3

10

2 1 1 0 1 20 0 0 1 2

0

3

6

9

12

15

18

21

24

27

30

33

No

. o

f co

mp

an

ies.

Micro scale Small scale Medium scale

This analysis had been done manually and graph is made with the help of Microsoft excel

Table:- 4 Shows that tools and techniques used by the Companies


13

What are the Potential benefit been obtained by Industries.

Potential Benefits

Mean of

all

response.

Reduced Cost (R.C.) 3.06

Improved Service (I.S) 3

Improved On time Delivery (I.O.D) 3.09

Reduced Lead Time R.L.T. 3.3

Increase Manufacturing Flexibility (I.M.F.) 3.18

Zero Machine Breakdown (Z.M.B) 3.24

Improved Customer Service I.C.S 3.42

Eliminate Error Proofing (E.E.P) 2.73

1. Nil (0%), 2.Low (1-25%), 3.Moderate (26-

50%),4.High (51-75%), 5.Very High (75-100%)

3.06 3 3.093.3 3.18 3.24

3.42

2.73

1

2

3

4

5

r.c. I.S I.O.D R.L.T. I.M.F. Z.M.B I.C.S E.E.P

Scale

Of

ben

efi

ts.

Potential Benefits.

R.C- Reduced Cost, I.S- Improved Service, I.O.D. Improved In on time Delivery, R.L.T-Reduced Lead Time, I.M.F.- Improved Manufacturing Flexibility, Z.M.B.- Zero Machine Breakdown, I.C.S.- Improved Customer Satisfaction, E.E.P. – Eliminate the error Proofing.


Table:- 4 Shows the Benefits Obtained by Company.

Summary of Findings Companies perceived lean manufacturing practice as an improvement project.

A negative trend can be seen on the negative perceptions of lean.

It was clearly found that, People related factors were the reasons for implementing the

Lean Manufacturing practices

After people related factors customer driven factors is the second factor which is

responsible for the adoption of lean manufacturing practices.

Customer driven factor was main reason for implementing the lean manufacturing

practices in Medium scale industries.

5S and Kaizen had been implemented by all companies.

T.P.M. was implemented by only one company and that was a Medium scale company

Poka yoke was more used by small scale industries

Reduction cost was moderate (26-50%).

There was not any company who can get the higher benefits up to 90% in this

research.

Error proofing was least beneficial than others.

58% people think that tools were complex for workers.

Entire Organization got benefits with the implementation.

They are recommending it to other companies to go for it too.

14A Study on the effectiveness of Lean Manufacturing Practices In MSME through Cluster Approach

Limitations of the Research


•Due to certain reason only one person was selected from each industry as it can be more

than one too.

•The research was carried out in a short period of time. Therefore the sample size and

other parameters were selected accordingly so as to finish the work within the time frame

•This was the research from manufacturing sector as it may not be applied to service

sector

•The study was done only in Mohali

16

Glimpses.Before After

Before After

AfterBefore


Kaizen Sheet 16/21/2013

Kaizen No.773Productivity Quality 3M Safety Material Energy

Kaizen Theme :- Implemented Area :- Zone- 5

To increase the production of Upper chain bracket Implemented By:- Satpal

Problem/Present Status:-- Before Implement:-- Result benefit:

The production of upper chain bracket

was low as there was a bit difficult to

meet the monthly orders.

P • Result production

increased by 80%.

• Saving Rs. 720 /day ,

which is Rs. 20540/

month.

Q

C

D

S

M

Root Cause Identification After Improvement:- Standardization:-

The production of this part was low

the fixture can only clamp these parts

The fixture was small

Root Cause: The fixture was smallHow many places this kaizen can be

deployed horizontally: 9 Paces Found

Idea To eliminate root cause The fixture can be enlarged

Action taken The fixture modified.

SOP to be revised

Operation standard to be

revised.

Thank you


a study on the effectiveness of lean manufacturing practices in msme

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