Kaizen at CoretecKaizen at Coretec

Presented byNarayan RaoVP OperationsYuken India Limited

How Coretec became a totally transformed Company through major Kaizen efforts

AgendaAgenda

• Introduction to Coretec• Transformation at Coretec:

– The Methodology– Re-layout– Seiton and other Improvements– Introduction of Kanban– Use of barcode technology

• Summing-Up

Introduction to CoretecIntroduction to Coretec

About CoretecAbout Coretec

• An ancillary of Yuken India Limited

• Compact, independent unit

About CoretecAbout Coretec

• Set up and managed by a senior executive with over 35 years experience (25 years at Yuken)

About CoretecAbout Coretec

• Manufactures iron cores

• Used in solenoid-operated Direction Control Valves manufactured by Yuken India

01 AC

01 DC

03 AC 03 DC

Direction Control Valve

Iron cores

Iron core comes in here

The methodologyThe methodology

How it was all done!

Guidance, WorkshopGuidance, Workshop

• Mr. V.K. Grover, Kaizen Consultant, started guiding Yuken and its sister companies from April 2000

• Initially, training was given in 5-S and in Kaizen concepts including kanban

• A four-day Gemba Kaizen workshop was conducted at these companies from 12th to 15th July 2000

Guidance, WorkshopGuidance, Workshop

• The team consisted of one person from Coretec, and others from Yuken India Limited and Sai India Limited

• The team re-laid out the Factory and initiated most of the changes explained here

• Every Friday afternoon was reserved for continuation of Kaizen activities

Re-layout at CoretecRe-layout at Coretec

Wasteful movements drastically reduced!

Original layoutOriginal layout

Incoming items

Finished items

Assembly , final welding to despatch

Raw material to tube-to-tube weldingStopper welding

MD’s office

Welding

Storage racks

Stor

age

rack

s

Stor

age

rack

s

Storage racks

Enclosure for grinding, buffing

Ultrasonic cleaning

Inspection / AssemblyTesting For backbite

removal

To next shed for air leak test

Return after air leak test

Return after backbite removal

Revised layoutRevised layout

Finished items

Incoming items

Assembly , final welding to despatch

Raw material to tube-to-tube weldingStopper welding

For backbite removal

Return after backbite removal

Welding

Inspection, Assembly, Ultrasonic cleaning

Grinding, buffing

Ultrasonic cleaning, testing

BenefitsBenefits

• Material movement reduced by 10 kms by: – Re-layout– Some operations were brought in– Some operations were closer

• Total floor space released : 40%• Part of the space released used for:

– Enlarging Managing Director’s office by 30%: very cramped earlier

– Providing space for visitors

Seiton and other Seiton and other improvementsimprovements

Making the worker’s life easier

Arrangement of toolsArrangement of tools

• Tools and equipment required stored neatly near the work place

• Space for keeping rejection and rework items:– Stored by type of

defect

Grinding and buffingGrinding and buffing

• Lot of time was wasted in changing wheels for tip grinding:– Additional bench

grinder procured and located properly

• Dust extractor installed

New fixtureNew fixture

• Copper rods inserted into stainless steel tubes at time of welding

• Removing these rods after welding was manual, time-consuming

• New pneumatic fixture:– Removes copper rod– Inserts into tubes to be

welded next

Right-sized machinesRight-sized machines

• One large ultrasonic cleaning machine used earlier: batches of 50 cleaned at a time

• Now, two small ultrasonic machines clean 6 at a time

New machine

Old ultrasonic cleaning machine including panel

New ultrasonic cleaning

machine (no extra panel)

Testing – before KaizenTesting – before Kaizen

• Testing of iron cores very laborious:– Fill up oil, assemble

to valve body– Manually operate

switch 100 times for each iron core

– Assemble 49 at a time to manifold

– Test one by one for air leak and for movement of the manual pin

Testing – after KaizenTesting – after Kaizen

• New test rig using a hydraulic power pack and a timer mechanism:– Both tests done

separately earlier now combined

– Saving of 3 minutes per iron core

– Higher reliability of testing

Manpower ReductionManpower Reduction

Before Kaizen

After Kaizen (present status)

Final target

5 3 2

Introduction of KanbanIntroduction of Kanban

No more planning!

Kanban from Customer

Kanban to Supplier

Kanban from CustomerKanban from Customer

• Daily supply to Yuken:– Empty trays

collected from Yuken

– Required iron cores produced the same day

– Filled trays delivered to Yuken the next day

Kanban to SupplierKanban to Supplier

• Subcontractors also operate on kanban in a similar way

• Subcontractor visits daily, picks up empty trays and returns filled trays next day

• No more shortages, no more follow-up and tension!

Kanban to SupplierKanban to Supplier

• Kanban through trays operates even with a supplier located at Harihar, 350 kms away from Bangalore

• Trays sent by bus overnight and returned in 2 – 3 days

Benefits from KanbanBenefits from Kanban

Item Before Kanban

After Kanban

Reduction %age

Iron Cores at Yuken & Coretec

Rs. 0.4 million

Rs. 0.02 million

95%

Raw materials and components

Rs. 0.82 million

Rs. 0.4 million

52%

Total inventory Rs. 1.22 million

Rs. 0.4 million

66%

Benefits from KanbanBenefits from Kanban

0.82

0.4

0.4

0.02

0

0.2

0.4

0.6

0.8

1

1.2

1.4

Before After

Finished Iron CoresComponents

All values in Rupees millions

Use of barcode Use of barcode technologytechnology

Material movement fully computerised:

No more manual material accounting and reconciliation!

Bar-code technologyBar-code technology

• All trays affixed with bar code stickers

• Trays scanned:– Incoming– Outgoing

• Automatic generation of DC’s and MRNs

• Analysis of tray (and therefore material) movement easily possible

Summing-UpSumming-Up

Total transformation of operations!

Future PlansFuture Plans

• Buy a small lathe so that components do not go out for removing weld “backbite”

• Use the same welding transformer to run three independent welding stations so that true one-piece flow can be implemented

The Last WordThe Last Word

• Mr. T.R. Prasanna, the Managing Director of Coretec feels that Kaizen has made his Company run by itself and left him free to plan for expansion and further growth

Thank You!Thank You!