Chapter-1

INTRODUCTION
1.1Company profile About (Bosch)

Robert Bosch GmbH is widely known the world over as a pioneer in automotive technology
for 120 years. The name Bosch is synonymous with innovations in automotive technology,
industrial technology and consumer goods and building technology. Founded in 1886 in
Germany as a ‘Workshop for Precision Mechanics and Electrical Engineering’ by Robert
Bosch, Bosch is today the largest automotive technology supplier in the world with a global
group turnover of Euro 41.5 billion in the year 2005. Interestingly, every year, Bosch files on
an average over 2,800 patent applications across the globe.

Bosch is now present in every continent with more than 280 subsidiaries, associated
companies and 12,000 service centers located in over 140 countries. Bosch operates 260
manufacturing locations worldwide. Of these 200 are located outside Germany in Europe,
North and South America, Africa, Asia and Australia. In fiscal 2005, Bosch employed more
than 251,000 people worldwide.

The special ownership structure of the Bosch Group guarantees it financial independence and
entrepreneurial freedom. The structure also enables the group to undertake significant up-
front investments for the future and do justice to its social responsibilities in a manner
reflecting the spirit and will of its founder. Ninety two per cent of the shares in Robert Bosch
GmbH are held by the charitable Robert Bosch Foundation.

1
1.2 INTRODUCTION TO MICO-BOSCH

MICO is a well known and India’s largest Indo-German organization. The company is with
the collaboration of German company Bosch Group.

Fig 1 : MICO is BOSCH

MICO is a member of the Bosch Group, Germany. Founded in 1951, MICO pioneered the
manufacture of automotive spark plugs and diesel fuel injection equipment in India. Access
to the international technology of Bosch, with a conscious commitment quality of its more
than 11,500 employees has made MICO the largest manufacturer of diesel fuel injection
equipment, auto-electrical, hydraulic gear pumps fir tractor applications, electric power tools,
packaging machines, Blaupunkt car multimedia systems and security systems.

Figure 2:.MICO at Nashik front view.

2
1.3 Key information of MICO:

1. Largest Indo German Company

2. Established in 1951 A.D.

3. 4, Manufacturing Locations: Bangalore, Nagnathpura, Nashik and Jaipur

4. All Plants TS16949 certified

5. Global Development Center at Bangalore.

6. MICO Application Center: Capable of application & development work for

customers worldwide and Bosch Group companies.

7. New products and technologies planned: Electronic Diesel Injection systems,

Safety Systems for cars, Localized Power Tools, Security Systems.

¾ Locations in India:

Figure 3: Manufacturing Units and sales office of MICO in India.

Plants Establishments
Bangalore - 1953

Nashik - 1969

Nagnathpura - 1989

Jaipur - 1999

3
1.4 MICO-BOSCH NASHIK:

MICO Nashik also abbreviated as MICO/NaP in the Bosch World, is one of the four pillars
of MICO and Bosch Group in India. The company is situated in city which is one of the holy
cities of India and is full of natural resources and manpower. This has contributed in the
development and growth of the company in the city. The MICO/NaP is located at Satpur in
Nashik. The plant is situated on a land area of 405, 060 sq.m. with 67, 617 sq.m. Of built up
area.

Figure 4: Landscaping at MICO Nashik

The plant has five functioning workshops with well planned and international quality
structure. The plants and buildings are well supplied with necessary facilities such as water,
electricity and ambiators, which make the working as pleasure. The plant is surrounded with
good landscaping and plantation giving the feeling of another world in the city. The good
landscaping is the characteristic of the plant.

Fig 5 : Plant Layout

4
 ¾ Milestones of MICO- Nashik

1969- Start of Pilot Plant

1974- Nozzle and Nozzle Holders production started
1988- Elements and Delivery Valves production started
1992- ISO 9000 Certification
1996- Started manufacturing DSLA injectors (EURO I)
1997- QS 9000 Certification
1998- Started production of DSLA Nozzles
1999- First export to Automotive After Market of BOSCH Group
2000- DSLA Nozzle: Approval up to 1800 bar pressure
2001- One Millionth DSLA Nozzle production
2002- Fifty Millionth NHA production
2003- ISO/TS – 16949 certification Lead plant status for DN Nozzles
2004- Lead plant status for KCA Production of the Sixty Millionth NHA & 100 Millionth
DLL-S Nozzle.

1.5 Products at MICO Nashik:

At the Nashik plants Nozzles and nozzle holders are manufactured which are used in the fuel
injection system of diesel engines. The MICO Nashik is specialized in manufacturing a
variety of nozzles and nozzle holders and that at the cheapest possible rate.

¾ Types of Nozzles:

1. DN nozzles: These are the pintle type nozzles. Pintle-type

nozzles have a coaxial jet and are used in pre-combustion
chamber engines and turbulent chamber engines. The
nozzle openings pressure it between 115 and 400 bars.

Fig 6 DN Nozzle

2. Orifice Nozzles: These Orifice nozzles or Pintaux nozzle have several Spray
orifices and are required for engines with direct injection. The nozzle opening
pressure is between 180 and 400 bar. For larger engines (more than 75 kW) also
cooled nozzles are used.

5
 3. These are termed as: DL, DLL, DSLA etc. these types are orifice types of nozzles
but the difference in them is the shaft diameter and length of the collar.

Fig 7: Orifice Nozzles DSLA, DL, DLL.

Types of Nozzle Holders:

Nozzle Holders are classified according to their shaft diameter.
1. P – Type Nozzle Holder: its characteristic dia. Is 17mm.

2. Modular Type: Its characteristic dia. Is 21mm.

3. Forged Type: It is made out of forging. & have dia. 30 mm.

3. Common Rail Injector

In 1st stage Producing only

-Injector body
-Armature group
-Valve seat
In 2nd stage producing entire assembly in house

Fig 8: Common Rail Injector

6
1.6 Customers of MICO:

MICO has a large customer base. The products of MICO are not only used in India but also
are exported and used by many world renowned automobile manufacturing companies.

Customers outside India: Customers in India:

1. General Motors 1. Ashok Leyland

2. Volkswagen 2. Ford

3. Peugeot 3. KAMCO Diesel Engines

4. Nissan 4. Simpsons Co. Ltd.

5. Hatz 5. Kirloskar

6. IVECO 6. Cummins India Ltd.

7. FIAT 7. Beml

8. Mercedes Benz 8. VST Tillers Tractors Ltd.

9. Renault 9. Swaraj Mazda

10. BMW 10. L&T John deer

11. Lombardini USA Inc. 11. Ford Eicher

12. DaimlerChrysler 12. Escorts Ltd.

13. Ford Tempo.

7
 Chapter 2
Problem Identification

2.1 Study of Existing Process.

2.1.1 Nozzles:-
Nozzle is the part of the injector through which the fuel is sprayed into the combustion
chamber. Injection nozzle consist of
¾ Nozzle body.
¾ Nozzle needle.
Fuel is supplied through small holes drilled along the nozzle body which terminate in
an angular gallery before the needle seating. The inner face of the nozzle holder and the outer
face of the nozzle body perfectly match each other. An annular groove is made in the nozzle
face to connect the oil holes drilled along the nozzle body with those in nozzle holes. Nozzle
needle is stepped in diameter to give differential area upon which the fuel pressure is applied
for fitting the needle against the spring loading.
2.1.2 Requirements:-
¾ To inject fuel at sufficiently high pressure so that fuel enters the cylinder with a high
velocity. Higher the velocity of the fuel smaller will be the droplet size. The momentum of
smaller droplet is less and hence penetration is also less.
¾ The penetration should not be high so as to impinge on cylinder walls. This may result in
poor starting.
¾ The fuel supply and cut-off should be rigid. There should not be dribbling.

2.1.3 FUNCTIONS OF THE NOZZLE:-

• CORRECT ATOMISATION: Correctly atomize the fuel into small particles so that it
ƒ mixes properly with air.
• PROPER DISTRIBUTION: The spray from nozzle should be such that fuel is evenly
ƒ distributed in the combustion space.
• INJECTION PRESSURE: Higher the injection pressure betters the dispersion and
ƒ penetration of the fuel into all the desired
location
ƒ in combustion chamber.

8
 • DENSITY OF AIR IN THE CYLINDER: If the density of compressed air in the
combustion chamber is high then the resistance to the moment of the droplets is
higher and dispersion of the fuel is better.
• PHYSICAL PROPERTIES OF FUEL: Properties like self ignition vapor pressure,
viscosity etc. play an important role in the distribution of fuel.
• PREVENTION OF IMPINGENT ON WALLS: Prevention of fuel from impinging
directly on walls of combustion chamber or piston because striking the walls
decomposes and produces carbon deposits. This cause smoky exhaust as well as
increase in fuel combustion.
• MIXING: Mixing of fuel and air in case of non turbulent type of combustion chamber
should be taken care by the nozzle.
• METERING: The nozzle should meter the injected fuel and prepare the fuel.
• DEFINE & SEAL: It should define the rate of injection curve and seal off the
injection system from the injection chamber.

2.1.4 TYPES OF NOZZLES:-

The type of nozzle used depends on type of combustion chamber in use. Mixing of fuel and
air depends upon the relative velocity between them, which in term is greatly affected by the
nature of the air movement in the combustion chamber.
According to relative movement of air and fuel there are two types first for open combustion
chamber and second for pre-combustion chamber.

9
2.2 Product at MFN-2

DSLA-

DSLA Straight Shaft

DSLA Normal Shaft

DLLP Type

Fig 9 : Types of DSLA

Fig 10: Nozzle Designation

DSLA Nozzle manufactured in MFN-2 at MICO BOSCH Nashik, it’s daily requirement is
very high as compare to DN,DL, and DLL.
DSLA Nozzle has two main parts
• Nozzle Body
• Nozzle Needle

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2.2.1Block Diagram of Manufacturing Process of DSLA Nozzle

Outsourced SOFT HARD

Nozzle Body STAGE STAGE

ASSEMBLY Customer

Outsourced SOFT HARD

Nozzle Needle STAGE STAGE

Fig- 11: Block Diagram of Manufacturing Process of DSLA Nozzle

Nozzle body and Nozzle needle manufactured separately then assemble both and supplied to
fit Nozzle Holder. Every Stage has different operation, after performing that operation ,
Nozzle supplied to next stage .

2.2.2 VSM of DSLA Body Soft stage

B2 VSM :- DSLA BODY SOFT STAGE

QSG5
store Runner type Body no. Daily avg.

Supplier PUR1 PPC

NORMAL 2438622925 13000 PCS

STRAIGHT 2438622923 1800 PCS

35 10 30
9
C. A. CAR
Insc. TBT SPINNER WIDMA CLEANING ECM PICSAL
GRINDING CLEANING BURIZING
rolling
5 0 8 10 1 1 30
VT -
- -
- -- - - - - -

CT 2 2.43 25.66
42.66 23 340 55 2100 720 16200
sec

80 80 80 80 80 80 80
OEE 80 80
% 80
1 1 1 1 1 1 1 1
EPEI 1 1
day
5 1 3 1 1 1 1
3 1

MAE 1 1.15days
0.384ays 0.04days 0.04days
0.38days 1.20days 0.19days 0 days 0.307days
1.35
720 16200
2 42.66 23 2.43 25.66 340 55 2100

BALL A.
TURNING CLEANING HARDENING
6
- - -
35 8
9.5 360 20700

80 80 80

1 1 1

3 1 1 0.307
0.34
0.234days 1.46days

9.5 360 20700

Fig 12: Value Stream Mapping

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2.3Problem Identified – After study of manufacturing line it has found that problem is
between DSLA Body Soft stage and hard stage
• WIP was increasing.
• Monthly Production was not Customer Oriented
• Replenishment time was more
• Using Push system

2.3.1 Data Collection and Analysis

2.3.1.1 WIP was increasing.

Soft Stage WIP

Month WIP(Days) Target
JAN 8 5
FEB 8.2 5
MAR 7.8 5
APR 7.9 5
MAY 7.5 5
JUN 7.45 5
JUL 7.2 5
AUG 7 5
SEP 7.5 5
OCT 7 5

Table 1: WIP Status

WIP STATUS at Soft Stage WIP(Days)

Target
9
8
7
6
WIP(Days)

5
4
3
2
1
0
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT
Month-2006

Fig 13: Soft Stage WIP Status

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2.3.1.2 Monthly Production was not Customer Oriented-
120000
Fullfilment
Requirement
100000

80000
Qty

60000

40000

20000

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Month

Fig14: Type wise fulfillment

2.3.1.3 Replenish Time at Soft Stage-

Replenish Time 2006
Month RT(days)
Jan 3.5
Feb 3.4
Mar 3.5
Apr 3.41
May 3.35
Jun 3
Jul 3.1
Aug 3.2
Sep 3
Oct 3
Table 2: Replenishment Time

Replenish Time at Soft Stage RT(days)

4
3.5
RT (Days)

3
2.5
2
1.5
1

Month (2006)
Fig15: Replenishment time at soft stage

At the same time Type-wise fulfillment was not according to target for some month.
Actually daily production was not meeting and daily it carryover and it was creating burden
on Production Department at the last week of Month. These shows existing process not
Customer Oriented.

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Chapter-3
Literature Review

Literature review provides theoretical and technological input about Kanban &Supermarket
implementation, which will be beneficial to attempt the stated problem.
3.1 History of KANBAN-
Literature “KATSUHIKO TAKAHASHI, Comparing reactive kanban systems,INT J. PROD.
RES.,2003,VOL 41”Explained that Kanban is Japanese world for card or signal. The Kanban
system was developed at a Japanese Automobile Manufacturing in the 1950s as the first JIT
ordering system
Actually KANBAN derived from the Two-bin Inventory system. It is closely associated with
the fixed-quantity system in which, a certain quantity Q, is ordered whenever the stock on
hand falls below a reorder point. The reorder point is determined so that demand can meet
while an order for new material is being processed. Thus, the reorder point corresponds to
demand during lead time. A visual fixed- quantity system called the Two-bin system. The
first (usually larger) bin contains the order quantity minus the reorder point, and the second
bin contains the reorder point quantity. At the bottom of the first bin is and order card that
describes the item and specifies the supplier and the quantity that is to be ordered. When the
first bin is empty, the card is removed and sent to the purchasing department to order a new
supply. While the order is being filled, the quantity in the second bin is used. If everything
goes as planned, when the second bin is empty, the new order will arrive and both bins will
be filled again.

(a) Two Bin System (b) Kanban Inventory system

Bin-1

Bin-2 KANBAN

Q-R
Reorder Card
R R

Q= order quantity
R= reorder point = demand during lead time

Fig 16: The Origin of Kanban

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Ohno looked at this system and liked its simplicity, but he could not understand the purpose
of the first bin. By eliminating the first bin and placing the order card ( which he called
KANBAN) at the top of the second bin Q-R inventory could be eliminated, In this system an
order is continually in transit. When the new order arrives, the supplier is reissued the same
kanban to fill the order again. The only that is maintained is the amount needed to cover
usage until the next order can be processed. This concept is basis for the KANBAN System.
The technique that makes the JIT/TQC principle practical is called Kanban System (rhymes
with bondon).Loosely translated from the Japanese. Kanban means visual control record or
card. A kanban is an authorization to do your job, to produce or move inventory. (2)
kanban do not make the schedule of production; they maintain the discipline of pull
production by authorizing the production and movement of materials.

3.2 What is Kanban?

“KANBAN FOR SHOPFLOOR created by productivity press development team,2002” Explained that
kanban system determines the production quantities in every process. It has been called the
nervous system of lean production because it manages production just as our brains and
nerves manage our bodies. The primary benefit of the kanban system is to tireduce
overproduction; and its aim is to produce only what is ordered, when it is ordered and in the
quantities ordered

3.3 The Pull System and Waste Reduction

“KANBAN FOR SHOPFLOOR created by productivity press development team,2002”

Explained that In the Kanban system the upstream process produces only enough units to

replace those that have been withdrawn by the downstream process. Workers in one process
go to the preceding process to withdrawn the parts they need. They do this only in the
quantities and at the time when the units are needed. The start of this withdrawal system
begins with a customer order. This is called a Pull System.
The pull system is based on the concept of a supermarket. In a Supermarket, customer buy
products already on the shelves and the shelves are replenished as customers remove the
products from the shelf. Applied to lean production, this process reverses the large lot “Push”
method of production products based on an estimate of expected sales.

15
 I need parts to “I need to “I need a
make a part replace the part” part/product ”

Supplier Production Withdrawal

Kanban Kanban Kanban

Suppliers Production Final Customer

Processes Assembly

Upstream Downstream

Fig 17 Pull Production with Kanban

A Pull System creates flexibility on the production floor so that exactly what has been
ordered will be produced, when it is ordered and only in the quantities ordered. In this way, it
is possible to eliminate overproduction – the most critical of the seven deadly wastes. The
ultimate conceptual goal is ZERO KANBAN, which eliminates work-in-process inventory.

3.4 What will make kanban Successful?

“American Machinist, 1981, Kanban are discovered,February:222” Explained that
Kanban is best implemented when a company has committed to a pull production system and
has already implemented small-lot production through one-piece flow and cellular
manufacturing . Once these methods are in place, kanban is the communication system that
keeps all the cells integrated and working in harmony. If kanban is deployed only in parts of
the plant there may be confusion between the “Push” and “Pull” aspects of the production
system. Kanban will expose the problems that cause waste, such as overproduction and if a
pull system is not the plant’s ultimate goal it may become difficult to eliminate these
problems. If a company has wide fluctuations in demand that cannot be smoothed (such as
seasonal products) and therefore will not benefit from small-lot production, kanban will be
less effective and may be inappropriate.
As the number of Kanban in the system is gradually reduced, the first problems that surface
are usually changeover bottlenecks. Improvement methods must be used immediately o
reduces changeover times so that TAKT Time can be reestablished and a mixed, small-lot

16
production flow can continue to be regulated by kanbans. If methods for reducing changeover
tomes are not being practiced it will be impossible for the plant to respond to customer
demand, which is the key purpose of kanban and Pull system.
Autonomous maintenance is another critical element to insure a successful pull production
system. Keeping machines operating, planning scheduled maintenance and all the other
elements of total productive maintenance, and all the other elements of total productive
maintenance ultimately will be necessary for kanban to function optimally.
Kanban is an advanced visual control system and depends on the discipline and
understanding that from implementing the 5S. The steps toward creating a visual workplace-
beginning with 5S to put the workplace in order establish visual displays, and support
continuous improvements will be an important foundation for your Pull system
implementation.

3.5 The Differences between KANBAN and Conventional Ordering System

3.5.1 Reordering Point Method and KANBAN
“KANBAN AND JUST-IN-TIME AT TOYOTA,Japan Management Association; Translated by
David J.LU, Productivity Press ISBN 0-915299-48-8” Explained that
The KANBAN system is based on an inventory management system called Reordering point
Method. This is a stastical method that allows factories to reorder the same amount of parts or
products each time. When inventory drops to a certain level- the reorder point – a new order
is made to replace the used inventory. The reordering point method can be automated easily
and it keeps inventory management cost down by reducing clerical work. However, it does
not pay attention to changes in demand. In fact, this method is unsuitable where sharp
fluctuations in demand exist.
This is also true of Kanban, kanban requires a somewhat stable market environment. It is
unsuitable for products that have large and unpredictable ups and downs. Even Kanban
cannot prevent shortages or gluts in such cases. Instead, the kanban system minimizes waste
by using level production, which averages out the product models and volumes to be
produced, and eliminates the need to produce in large lots.

Though the Kanban system grew out of the reordering point system and shares some of its
characteristics, kanban is a great improvement over the earlier system in many ways

17
 Recording point method Kanban system
1.Enables inventory to be managed without paying

Similarities
Attention to demand fluctuation.
2.Not suitable when sharp demand fluctuation are typical
3. Helps keep inventory management costs down.
4.Conductive to use in an automated recording system
Information Information & goods are kept Inventory (kanban) &
& goods separate from each other (inventory goods are kept
[=good]is managed according to together
the warehouse entry/exit vouchers
[=information])
Management Requires constant inventory Does not require management
Differences

management(warehouse entry/
exit management)
Visual control Does not enable visual control Enable visual control
Relationship Managed separately from Closely related to factory &
with factory factory factory operations
Relationship to None Decreasing number of kanban
improvement indicates the need for
activities improvement

Table 3: Similarities & differences Between the Recording Point Method & Kanban System

3.5.2 Production Work Orders and KANBAN

The “Push” Production system depends on production work orders to identify the type and
quantity of production to be done is each process. Production work orders are generally used
when upstream processes determine how and when goods are moved downstream and how
they are controlled between processes. Production work orders are based on process-specific
operation plans developed as part of the production schedule for the plant. Thus , even though
production still a series of processes, each process relates vertically to the production
schedule, not horizontally to other processes.

In the Kanban system, Kanban serve as the production order for the pull system. They follow
the goods and indicate what is to be withdrawn from the upstream process. As soon as a
client orders a product, a work order is sent to the assembly line, which in turn orders parts
from the process line. The process line orders the materials needed from procurement and so
on. Any one can see that this is the reverse of production in the push system, which begins at
parts procurement and moves downstream. Order information in a pull system the Kanban-
travels upstream from sales to assembly to procurement instead of downstream from planning
and procurement to assembly to sales. Since the downstream processes derive a pull system,

18
originating with the customer order, there is great flexibility in relation to demand and in-
process waste also can be greatly reduced.

3.5.3 MRP II and KANBAN .

“ INTEGRATING KANBAN WITH MRP II,By Raymond S.Louis , ISBN 1-56327-182-6”
Explained that Material requirement planning is a unique and widely used computerized push
system technique. It uses a concept called time buckets-n a predetermined time period for the
production of a set quantity of units based on lead-time data. In the pull system of KANBAN
this time bucket would be one day of production whereas in MRP it covers at least a week.
MRP depends on a master schedule that is rigorously maintained. Planned and actual
production outputs are compared daily and discrepancies are remedied weekly through
changes in the master schedule.

Though the Kanban system also has an overall production schedule it does not drive
production but sets the stage for it. It is used to prepare the plant for the day’s work,
arranging material and workers at each process. Comparison of plans and actual production is
not necessary since production occurs in response to daily orders. Since KANBAN flow
backward from the final assembly upstream, only the final assembly line needs to know about
changes in sequence or quantity. The entire plant’s production will automatically respond to
these changes as the kanbans reach each process accordingly. However Kanban can be used
in an MRP system as as dispatching tool within each time bucket. Also for products that do
not allow smoothing of production because of very short production runs or sharp
fluctuations in demand, MRP may be more appropriate.

3.5.4 PUSH versus PULL System

“Push and Pull Relationships- by Seong-Seop Kim, Choong ki Lee, vol-29 ,year2002”
Explained that, The Push system driven by production work orders imposes in-process
inventory onto downstream process. It tries to stubbornly fulfill the production schedule no
matter what is happening downstream. The rigidity of the push system stems from the need to
determine the schedule for the next week and to estimate future orders for the next several
weeks, and it requires large lot sizes and long production cycle time.

19
 Fig18: Difference between push and pull system
Once setup times and minimum inventory are reduced and order points is lowered so that
small lot size and level production are possible, a pull system can be established that allows
maximum flexibility in relation to customer orders and downstream production needs.
FFIG

Pull System Produce only on real customer demand

Push Pull
Pull System
Inventories cause troubles and increase costs. In a pull system, production and logistics in the
value-added chain are only triggered, if an actual internal or external customer’s demand exists.
Simultaneously introducing the continuous flow production and the synchronization of production
and logistics, lead time and inventories can be reduced to the minimum. Our objective is to
produce exactly according to the customer’s demand (real demand). The introduction of
transparent and self-controlling systems eases the production planning and control.
Fig 19 Push and Pull Process

20
In a Pull System the downstream processes determine the production demands of upstream
processes. The downstream process “Pulls” from the upstream process just those goods that
are needed, when they are needed, and in the amounts needs. As products are pulled from one
upstream process, it pulls from the previous process and , like a chain reaction, products and
parts are pulled all the way back form raw material inventory and ultimately from outside
suppliers.
3.6 Types of KANBAN
“BOSCH production system Nashik chapter” 2005.vol 6,p23-27” Explained that Kanban is
the name given to the production order cards in a Pull System. Since the Japanese word
“kanban” translates as card or sign, and even billboard, or we can say Kanbans are the “sign”
attached to in-process inventory to indicate production orders. There are mainly two kinds of
Kanban
1. Transport Kanban
• Supplier kanbans or Parts-ordering kanban
• Withdrawal or in-factory kanban
2 Production Kanbans
• Production-ordering kanbans
• Signal kanbans

3.6.1 Transport Kanban

The first major type of Kanban is a Transport Kanban, which indicates when numerous parts
are to be moved to the production line, or between process in production and assembly. In
addition to identifying the part and quantity, transport Kanban indicates where the part comes
from and where it is going. There are two basics types of Transport Kanban

¾ Supplier Kanban or Parts ordering Kanban-

Supplier Kanban are the orders given to outside suppliers for parts needed are assembly lines.
If the Kanban system has extended to the supplier network, then suppliers will deliver on
demand as supplier Kanban are received from the factory.

21
 Supplier or parts
ordering kanban
These kanban are sent as order to
Transport outside supplier
Kanban
These kanban are used to
indicate when numerous parts Withdrawl or in
are to be moved to production factory kanban
line These kanban are used between
processes in factory.

KANBAN
(overall)
Production-ordering
kanban
These are the type ofm kanban
routinely used at processes that
Production do not require changeover
kanban
These kanban are used to
indicate operation
instuction at specific
processes. Signal
kanban
These kanban are used at presses
or processes that require
changeover

Table 4: Types of KANBAN

¾ Withdrawal or in- factory kanbans-

Assembly lines also use parts and subassemblies that are produced within the factory. These
are the kanbans used between processes in the factory, they provide the details needed to
withdraw parts form an upstream process.
Withdrawal Kanban are used in many forms depending on the need and type of part being
withdrawn-one kanban for a single part or for a container of parts, or a series of kanbans for
when parts must be supplied in a certain order for downstream assembly sequences.

3.6.2 Production kanbans

The second primary type of kanban is known as a production kanban. Production kanbans
indicate operation instructions for specific processes. There are two basic types of production
kanbans

¾ Production- Ordering Kanbans:

These are the type that most people think of when they talk about the kanban system. They
are routinely used at processes that do not require changeovers. A Production- ordering

22
kanban most closely resembles the standard production order used in a push system- it
identifies what is to be produced and in what quantity. When a withdrawal kanban authorizes
the removal of parts from a line or cell, production-ordering kanbans initiate production to
replace the parts that have been removed.

¾ Signal Kanbans-

Signal Kanban are used at presses or other processes requiring changeovers to signal when a
changeover is needed in the sequence of production kanbans. Triangle kanbans are special
form of signal kanban that call attention to the reorder point.

3.7 Functions of KANBAN

¾ To Serve as the Automatic Nervous System for Just-in-Time Production “By Jens
Nothroff , Analysis and animation of KANBAN system in the car supplier industry
,2002 p1-138” Explained that Just as the autonomic nervous system signals the brain
when certain condition occurs, so kanban is the communication system for lean
production . It signals upstream processes when and what to produce and alerts them
when problems or changes occur so that they can stop producing.
Pickup and work order information-
Kanbans serves as work order, they are automatic directional devices. Kanbans provide two
kinds of information;
• What parts or products have been used and how many
• Where and how parts or products are to produced
Kanban signal standard operations to be engaged at any time based on actual conditions
existing in the workplace. They also prevent unnecessary paperwork in startup operations.
Elimination of overproduction waste-
Since production only occurs when signaled by a downstream process, in-process inventory
and transportation are kept at a minimum and overproduction does not occur.

¾ To Improve and Strengthen the Factory-

Kanban remain attached to the goals that they define and consequently serve as visual
controls

¾ A Tool for Visual Control-

Since Kanban stay with the goods until the product is completed, they act as visual indicators
of where production priorities exist and how operations are proceeding. Since they drive

23
production, they are powerful visual controls of the process itself, determining when each
process is to produce more and when it is to stop production.

¾ A Tool for promoting improvement-

Inventory has problems. Too many kanbans indicate excess in-process inventory. By
reducing the number of kanbans, problems area will come out of hiding so that they can be
improved. In this way the kanban system becomes a valuable means to drive out waste and
continually improve the production system.
3.8 Rules of Kanban
“BOSCH production system Nashik chapter” 2005.vol 6,p23-27
The following rules must be observed if the kanban system’s potential is to be fully realized.

Rule 1: Downstream Process withdraws items from upstream processes.

Rule 2: Upstream processes produce only what has been withdrawn

Rule3: Only 100% defect-free products are sent to the next process.

Rule4: Level production must be established.

Rule5: Kanbans always accompany the parts themselves.

Rule6: The number of kanban is decreased gradually over time.

3.9 Benefits of KANBAN

• Increased Transparency of Production.

• Highly Reactive Customer Orientation.

• Triggers down-stream Process to Produce

• Minimize Production lead time.

• Tightly controlled Work in Process Inventory.

• Supports Pull Principle of BOSCH PRODUCTION SYSTEM.

24
 • Less effort for Production and Logistics planners.

• Simple self Controlled Loops.

• Prevents overproduction and underproduction.

3.10 Calculation of KANBAN

The Kanban system supports level production. It helps to maintain stable and efficient
operations. The question of how many kanbans to use is a basic issue in tuning a kanban
system. If your factory makes products using mostly standard, repeated operations, the
number of kanbans can be determined using the formula

K= DR* RT*(1+ α) / NC
Where
DR= Daily Requirement (parts/day)
RT= Replenishment Time (days)
α= Safety factor
NC=Number of parts per container
Inventory Level = Production requirement * Replenishment time* ( 1+α )
No. of Kanbans = Inventory Level / lot size

The number of kanbans you need dependent on the number of pallets or containers and their
capacity. Lead times, safety margins or buffer inventory , and transportation time for kanban
retrieval are also important factors.

Several questions must be answered when deciding the number of kanban to use.
• How many products can be carried on a pallet?
• How many transport lots are needed, given the frequency of transport?
• Will a single product or mixed products be transported?

The relationship between the order-to-delivery period and the production cycle is also
relevant.
¾ Order-to-delivery time- What quantity do assembly processes require and in what
amount of time?

25
 ¾ Production cycle or lead time- Consider the following
¾ The time it takes to send withdrawal Kanban to the previous process after removing
the Kanban.
¾ The time that elapse until processing is begun after exchanging withdrawal kanban for
WIP kanban.
¾ The time it takes to produce supply lots.
¾ The time it takes to store the lot to be processed.
¾ The time it takes to transport processed items to the assembly line.
In lean production, how to determine the number of kanbans used is less important than how
to improve the production system so that this number can be reduced. To achieve a minimum
number of kanbans several important improvements must occur.
1. Proudction must be done is small lots.
• Reduce setup times to a minimum
• Cut lead time to a minimum.
2 Buffer stocks that are kept as safety margins against market fluctuations and
production instability must eventually be eliminated.
Short setup times make it possible to respond quickly to change. A
Short production cycle allows you to reduce the number of kanbans to
the minimum since reliable information about changes are easily
accessible and the system responds rapidly.

3.11 Takt Time

Takt time is an important element to understand in production scheduling. Takt time is the
rate at which products or parts must be produced to fulfill customer orders.
For example , if customer demand is 240 products a day and production time equals 480
minutes per day, then the takt time- the time you have to produce one product –is 2 minutes .
You may be able to produce the product in less than that and therefore could produce more
than 240 per day, but you will restrain from doing more than what is needed, thus avoiding
overproduction. Takt time therefore is not a measure of what you are capable of but a
calculated number designed to match production to market demand.

26
The formula for calculating Takt time -

Operating hours per day

Takt Time =
Output demand per day

Output Demand Output Demand per month

=
per day
Operating days per Month

Takt time sets the rhythm or pace of production. Like clapping your hands in time t o a piece
of music, Takt time claps the veat of the market. When orders are up, takt time will set a
faster beat, when orders are down, takt time will be slower. The kanban system is the means
used to regulate the rhythm of production to takt time.

3.12What Belongs on a Kanban Card

Kanban cards can be of different types. These cards should show information required to
serve for the purpose for which they are intended.
Ideally they should include:
¾ The material, part, subassembly, or assembly number.
¾ A description which a drawing or photo, if possible.
¾ The previous process- where did it come from?
¾ The next process- where does it go?
¾ The internal or external supplying process
¾ The customer or factory order number
¾ What, when, and how much to withdraw
¾ What, when, and how much to make.

27
 3.13 Rules for circulating kanban

Make sure the following rules are adhered:

¾ Each pallet or container has one kanban sheet or card.
¾ Kanban card always accompany the material.
¾ The quantity indicated on the card is the same as the quantity in the container.
¾ Kanban posts held Kanbans for the material that is withdrawn or produced and
indicate material that has been used in production.
¾ When production begins in a subsequent process, withdrawal Kanban are put in
withdrawal Kanban post to signal themed for replacement of material from the
upstream process.
¾ Production Kanban are placed in production Kanban post in the same sequence the
material is withdrawn.
¾ Production occurs in the same order that the production Kanban collect in the
production Kanban post

28
CHAPTER 4

VALUE STREAM MAPPING

“BOSCH production system Nashik chapter” 2005.vol 6,p23-27” Explained that

VSM is a tool to implement Kanban & Supermarket. As the implementing strategy suggests,
after deciding the vision, the first stage of BPS is the value stream mapping of the products.

4.1 Introduction:

A value stream is all the actions (either value added or non value added) currently required to
bring a product through the main flows essential to every product:
1. The production flow from raw material into the arms of customer.
2. The design flow from concept to launch.
Value stream mapping is a pencil and paper tool that helps to see and understand the flow of
material and information as a product makes its way through the value stream i.e. follow a
product’s production path from customer to supplier, and carefully draw a visual
representation of every process in the material and information flow. Then ask a set of key
questions and draw a “future state” map of how value should follow i.e. Value Stream
Design.

¾ Advantages of Value Stream Mapping:

¾ It helps to visualize more than just the single process level, i.e. assembly, welding,
etc. in production. You can see the flow.
¾ It helps you see more than waste. Mapping helps to see the sources of waste in the
value stream.
¾ It provides a common language for talking about manufacturing processes.
¾ It makes decision about the flow apparent, so you can discuss them. Otherwise, many
details and decisions on the shop floor just happen by default.
¾ It ties together lean concept and techniques, which helps you avoid “Cherry Picking”.
¾ It forms the basis of an implementation plan. By helping to design how the whole
door to door flow should operate – a missing piece in also many lean efforts- value
stream maps become a blueprint for lean implementation.

¾ It shows the linkage between the information flow and the material flow which
otherwise is impossible to follow.

29
 ¾ 4.2 Steps involved in Value Stream Mapping:

Figure 20: Steps in Value Stream mapping

¾ 1. Selection of the Product types for value stream:

One point to understand clearly is the need to focus on one product family. In this first steps
the types of product which are considered for the VSM are selected. The demand of the
product can be a basic guideline for the selection of the product family. The criteria for the
selection may be ABC analysis or VED analysis. The lead time for acquiring the raw
material or the critical parts, many or any one of the above criteria can be used for

¾ 2. Current State mapping:

Symbols used:

----- Customer or Supplier

----- Inventory locations

---- Process Box

30
 ---- Data Box

----- Material Flow (Push Type)

----- Information Flow.

---- First in First out - Continuous material Flow.

FIFO

---- Supermarket

----- Withdrawal

----- Withdrawal kanban

---- Production kanban

----- Kanban Post

---- Milk Run

----- Operator.

31
Measurements taken:

Cycle Time:
How often a part or product actually is completed by process, as
timed by observation. Also, the time it takes an operator to go
through all of their work elements before repeating them.

Value Added Time:

Time of those work elements that actually transform the product in
a way that the customer is willing to pay for.

Lead Time:
The time it takes one piece to move all the way through a process or
a value stream, from start to finish. Envision timing a marked part
as it moves from beginning to end.

Drawing value stream:

¾ Collect customer information regarding types of product, Volumes, Frequency of
delivery i.e. how they want the delivery etc.
¾ Tour the plant to identify and map the sequence of the main processes. And draw the
various processes in the symbolic form on a piece of paper. Draw the process in the
sequence in which they occur and draw them on the paper from left to right.
¾ Fill out data boxes, count inventory, and map inventory locations:
¾ In the data box, information regarding cycle time, setup time, Uptime, per shift
availability and no. of machines for that operation etc. information is written.
¾ Additional information regarding lot size, type of parts, working time shift model,
scrap/ rework etc. can be written.
¾ Inventory between two processes is written and shown with symbols in the map.
¾ Draw material flow:
¾ Process interaction (Push, Pull etc.)
¾ Draw supplier information
¾ collect data for critical parts

32
 ¾ Draw Information flow.
¾ Production schedule, communication system, interaction , ordering, forecast
¾ Whom from and how do the processes and worker know what to do and when to do
it?
¾ Calculate lead time and value added time.

¾ 3. Future State Drawing:

The purpose of mapping is to highlight sources of waste and eliminate them by

implementation of a future state value stream that can become a reality within a short period
of time. The goal is to build a chain or production where the individual processes are linked
to their customers either by continuous flow or by pull, and each process gets as close as
possible to producing only what its customers need when they need it.

4.3 Key Questions for the Future State:

¾ What is the Takt Time for the chosen product family?

“Takt Time” is how often you should produce one part or product, based on the rate
of sales, to meet customer requirements. It is calculated by dividing the customer demand rate
per shift (in units), into your availability working time per shift (in seconds).

Fig 21:Order and Stock

33
 ¾ Build to order or finish goods supermarket?
Decide whether to build a product and send it directly to the shipping or send it to the
supermarket from where the customer takes it with the help of kanban card. This is an
important decision, and main need for direct to shipping is the complete reliability of process.
So it is better, to make finish goods supermarket as for the trial basis and then switch to finish
goods supermarket.

¾ Whether Batch Production or Continuous production?

Continuous flow refers to producing one piece at a time, with each item passed immediately
from one process step to the next without stagnation in between. Continuous flow is the most
efficient way to produce, and lot of creativity is required to achieve it.
The main hurdle in switching from Batch to continuous production is the changeover time or
setup time to change from one type to other type. The attempt should be made to change the
setup time to zero minute.
A good approach can be to begin with a combination of continuous flow and some pull/FIFO.
Then extend the range of continuous flow as process reliability is improved, changeover
times are reduced to near zero, and smaller, in0-line equipment is developed. The difference
between batch production and continuous flow can be visualized from the Following two
figures.

Figure 22: Batch Production System

Figure 23: Continuous Flow

34
 ¾ Implementation of Plan:

This stage is nothing but the listing out the basic targets, jotting down the activities that are
decided to be implemented in first phase, dividing them into groups, assigning the
responsibility to various leaders.
A value stream map looks at the entire flow through the facility, as opposed to only
individual processing areas, and in most cases it will not be possible to implement entire
future state concept at once. There is much to do. So it is the value stream manager’s
responsibility to break implementation into steps.
For this one of the strategy is to divide your future state value stream map into
segments of loops as the suppliers loop, pacemaker loop or assembly loop etc.
This plan shows:

1. Exactly what you plan to do by when, step by step;

2. Measurable goals;

3. Clear checkpoints with real deadlines and named reviewer(s).

¾ Where is the right point to control production?

By using supermarket pull systems, one will typically need to schedule only one point in your
door to door value stream. This point is called the pacemaker process, because how you
control production at this process sets the pace for all the upstream processes. For example,
fluctuations in production volume at the pacemaker process affect the capacity requirements
in upstream processes. Selection of scheduling point also determines what elements of your
value stream, become part of the lead time from customer order to finished goods.
The material transfers from the pacemaker process downstream to finished goods need to
occur as a flow (no supermarkets of pulls downstream of the pace maker process). Because of
this, the pacemaker process is frequently the most downstream continuous flow process in the
door to door value stream. On the future state map the pacemaker is the production process
that is controlled by the outside customer’s orders.

35
Figure 24: Pacemaker process for continuous flow.
 Figure 25: Pacemaker for batch production.

Distribute the production of different products evenly over time at the pacemaker process. Is
small lot production possible? Most production departments probably find it easier to
schedule long runs of one product type and avoid changeovers, but this creates serious
problems for the rest of the value stream.
Grouping the same products and producing them all at once makes it difficult to serve
customer who want something different from the batch being produced now. This requires to
have more finished goods inventory – in the hope that to have on hand what a customer wants
– or more lead time to fulfill an order.

Batching also means that fabricated components will be consumed in batches, which swells
the in process inventories needed in upstream supermarkets throughout the entire value
stream. And, because a variation in a final assembly schedule is amplified as parts move
upstream, those in process inventories will tend to grow larger the further upstream you go.
Leveling the product mix means distributing the production of different products evenly over
a time period. The more you level the product mix at the pacemaker process, the more able
you will be to respond to different customer requirements with a short lead time while
holding little finished goods inventory. This also allows your upstream supermarkets to be
smaller. But leveling requires some efforts to be taken such as more changeovers and trying
to keep all components variations at the line at all times.

36
 ¾ What consistent increment of work should acme release and take away at the
pacemaker process?
Many companies release large batches of work to their shop floor processes, which causes
several problems:
• There is no sense of takt time and no pull to which the value stream respond.
• The volume of work performed typically occurs unevenly over time, with peaks and
valleys that cause extra burden on machines, people, and supermarkets.
• The situation becomes difficult to monitor.
• With a large amount of wok released to the shop floor, each process in the value
stream can shuffle orders. This increases lead time and the need to expedite.
• Responding to changes in customer requirements becomes very complicated, which
can often be seen in very complex information flows in current state drawings.
Establishing a consistent or level production pace creates a predictable production flow,
which by its nature advises of the problems and enables to take quick actions. A good place
to start is to regularly release only a small, consistent amount of productions instructions at
the pacemaker process, and simultaneously take away an equal amount of finished goods. We
call this practice a “paced withdrawal”.

Management time frame plays an important role in this process. Do you provide customer
„Takt time feeling“? If you release a week of work to the floor at one time, then the answer is
probably once a week. It is impossible to produce to takt time n this situation. There is no takt
image however if you are scheduling and checking productions every pitch, then you can
rapidly respond to problems and maintain takt time. Just as we don’t want to transfer the
material in large batches, we don’t want to transfer production instruction in big batches
either.

4.4 Supermarket and Pull system.

“BOSCH production system Nashik chapter” 2005.vol 6,p23-27” Explained that

The purpose of placing a pull system between two processes is to have a means of giving
accurate production instruction to the upstream process, without trying to predict downstream
demand and scheduling the upstream process. Pull is a method for controlling production
between flows.

37
The area where produced part, components, subassemblies, and finished goods are stored are
called supermarket in kanban system. The supermarket or stores are located in the areas
where the products or parts are produced. Customer- the next process- comes to the area to
retrieve the part they need. Withdraws and production kanban controls this process, insuring
that there are always parts available when needed, but that no more that needed will be made.
Supermarket are a nice way to control production between processes that cannot be tied
together in a continuous flow, but sometimes it is not practical to keep an inventory of all
possible part variations in a pull system supermarket. Examples include custom parts, parts
that have a short shelf life, and costly parts that are used infrequently.

In some of these cases a FIFO lane can be used between two decoupled processes to
substitute for a supermarket and maintain a flow between them. FIFO lane can be used for
keeping the limited no. of inventory. If the FIFO lane gets full, the supplying process must
stop producing until the customer has used up some of the inventory. Sometimes “Sequenced
pull” between two processes, instead of a complete supermarket that has all components
represented in it. Sequenced pull means that the supplying process produces a predetermined
quantity directly to the customer process order. This works if lead time in the supplying
process is short enough for production to order, and if the customer process follows strict
ordering rules. Sequenced pull is sometimes called the “golf ball system” because colored
ball or disks are sometimes used to provide production instruction.

Figure26: Supermarket and Pull System.

38
4.5 Water Beetles and Milk runs
The term water beetle comes from the insect called whoroligig. It moves swiftly across the
surface of water, spins, and makes rapid and unexpected changes in direction. In the Toyota
production system this name was given to the conveyor- an operator who delivers parts to the
other operator in his cell or on the line so that they don’t have to get to replenish their work
station to make the next set of product.

In the Kanban system frequent transportation of parts becomes necessary. Usually hourly
deliveries are needed. For simplicity, it is been decided the withdrawal and production
process in terms of a single withdrawal location. The reality is that most production items to
be produced require numerous parts that come from several preceding processes. This can be
a time consuming and confusing aspect. Designing a carrier to withdraw part from the
preceding processes and deliver them to worker greatly simplifies the kanban process. Also,
this perso quickly becomes an expert in the withdrawal and production kanban process,
making it possible to identify and eliminate errors.

The benefits of the water beetle: When a water beetle supports the line:
¾ Operators don’t have to leave the work area to find parts or tools.
¾ Waiting time becomes visible.
¾ The water beetle becomes the pace makers for the line; delay and progress becomes
visible.
¾ The water beetles can fill in far absent operator or for less than “full work” operations.

4.6 BOSCH PRODUCTION SYSTEM:

“BOSCH production system Nashik chapter” 2005.vol 6,p23-27” Explained that

One of the major initiatives taken by the MICO and Bosch Group is the changing of its
culture of working as per the need of the changing market conditions and competitive
environment. This is the stone step taken by the company towards lean manufacturing.

4.6.1 Introduction:

Like other production systems the Bosch production system is a step towards the changing
world environment of lean manufacturing. Lean thinking has become the dominant trend in
operations and manufacturing management over the last few years, where its success is now

39
seeing it being applied in services and healthcare. As the name suggests, BPS Lean
manufacturing focuses on getting more from less, but not in any reckless, reactive way. BPS
approach is not ‘downsizing’, but is instead a holistic, carefully planned approach to how
organisations operate, through building on customer focus, innovation and continuous
improvement. The aim is on delivering value and stripping out anything that fails to by
focusing all efforts on eliminating ‘waste’,

4.6.2 BPS – Goals:

The concept of BPS has come from the Goals of the BPS. The goals of BPS are as follows:
• Increase of customer satisfaction
• Increase of value contribution
• Improvement in the quality, cost and delivery performance to the customer.

Figure 27:Goals of BPS

4.6.3 Principles of BPS:

BPS is not only a theory but is a philosophy which has its own Principles and elements. The
Principles of the BPS are the guidelines to achieve the lean manufacturing and to avoid the
various types of waste in any kind of procedure. The principles of BPS are designed keeping
in mind the ultimate customer satisfaction in terms of world class quality, cheapest cost and
timed delivery. But this is to make it inline with the involvement of associates and their
satisfaction. Because Bosch Group knows that the associates and the staff are the building
stones of an organization. These Principles of BPS are explained below.

4.6.4 Elements of BPS:

The elements described in this section allow putting the BPS principles into practice. The
selection of elements must be made on the basis of potential and measures derived from the

40
ACTUAL analysis. The introduction of elements results from the implementation strategy
that is to be developed for the area.
There is a detailed description available which is designed to guarantee common standards. It
basically forms the standard on which implementation can be based. The element
descriptions leave enough freedom to adapt to local requirements, e.g. for training facilities.

Figure 28: The Structure & Principle of BPS

Figure 29: Phases of BPS implementation

41
Principles and elements are correlated to each other. Basically the principles represent the
binding rules for BPS and they define the alignment of our production and processes.
Principles are so to say enabled by the elements, that is, elements deliver methods,
proceedings and tools, to fulfill the principles.

4.6.5 Phases of BPS Implementation:

b. Standardized Work
1. Preparation Phase:
c. Quick Change Over
a. Value stream Design
d. Pull system
b. BPS Metrics
e. Ship to line
c. Vision
f. Lean line design
2. Stabilization Phase
g. Leveling
a. Orderliness and Cleanliness
h. Continuous improvement
or 5S
process
b. Visual Management
4. New Production Planning.
c. Total Productive
a. Planning Guideline
Maintenance
b. Design for manufacture and
d. Poka Yoke
assembly
e. Q tools
c. Product life cycle planning.
f. Team Oriented Production
3. Optimization Phase
a. Flow Oriented Layout

¾ Preparation Phase:

1. Create a vision for model area using VSM/VSD.

2. Derive a holistic layout and a logistics concept from the vision.
3. Define metrics for target Tracking
4. Establish an implementation plan according to the phase model
5. Determine Point kaizen

¾ Stabilization Phase:

1. Production leveling
a. Value stream based on customer requirements from the very early stage
b. Production leveling of volumes and sequence

42
 c. Standardization of production sequence, stabilization of production.
2. Process Stabilization
a. Increase of equipment and parts availability
b. Standardized work
c. Visualization of standards, deviations, actions

¾ Reduction Phase:

1. Flow: Synchronizing processes, putting them into flow (layout change).

2. Lot size reduction: Change-over time reduction, increase of change over
frequency, starting with pacemaker process.

4.6.6 BPS - Vision:

The basic aim of the BPS is to eliminate the various types of waste those are present in
the line. It may be direct or indirect. There are hardly any waste-free processes,
particularly in a complex and dynamic environment the aim must be to constantly
improve processes and thus reduce waste even more.

The 7 types of waste in production are:

1. Overproduction

2. Waiting time

3. Transport

4. Space and Surface area.

5. Storage

6. Non-value-added movement

7. Faults and rework

43
 Chapter – 5
METHODOLOGY

5.1 Proposed Methodology

Thus after study of the existing process, identified problem could be solved by method
of kanban and supermarket between soft stage and hard stage. It also helps to
implement the pull system which is demand of BPS.

Outsourced SOFT HARD

Nozzle body STAGE STAGE

ASSEMBLY Customer

Outsourced SOFT HARD

Nozzle Needle STAGE STAGE

Fig 30: Proposed Kanban and Supermarket control Area

5.2 Value Stream Design for Soft Stage

Fig 31: Value Stream Design for Soft Stage

44
5.3 Future Kanban Control Area

This figure shows the future kanban control area, if the kanban & supermarket
successfully implemented in pre decided area and gives good result, after that this plan
will be implementing, it was decided by management

Fig32: Future Kanban and Supermarket control Area

45
Chapter 6.
Implementation Phase

6.1 Action Plan.

6.1.1 To Decide Kanban Control Area: After study of the existing process it
was found that maximum inventory and replenishment time was in soft stage and hard
stage. In the process of production initially the parts are processed in soft stage and then
on hard stage. Thus first the problem should be eliminated first from the initial phase of
production i.e. soft stage. So it was decided to implement Kanban in X- Soft stage.

Outsourced SOFT HARD

Nozzle body STAGE STAGE

ASSEMBLY Customer

Outsourced SOFT HARD

Nozzle Needle STAGE STAGE

Fig 33 Proposed Kanban and Supermarket control Area

6.1.2 Selection of Kanban parts.

Type-wise Nozzle Requirement in %

Normal Shaft
Straight Shaft
P Type
High Pressure

Fig 34 Type wise Requirement

46
 Normal Straight High
Month Shaft Shaft P Type Pressure
January 300700 52800 10000 2000
February 329400 72000 12000 1000
March 321600 64200 8000 3000
April 348000 64200 10000 6000
May 327000 52200 20000 8000
June 357600 72000 10000 7000
July 338400 60000 12000 8000
August 326400 62400 25000 6000
Sept 382800 62000 26000 10000
October 364500 72000 15000 7000
November 361400 50400 22000 5000
December 361400 72000 20000 10000
Total 4119200 756200 190000 73000
Requirement in % 80.16503192 14.71664331 3.697649 1.420675697

Normal Straight High

Nozzle Types Shaft Shaft P Type Pressure
Requirement in % 80.16503192 14.71664331 3.697649 1.420675697
Table 5: Monthly Nozzle Requirement

From the table and the pie diagram it is clearly seen that the percentage contribution of
Normal shaft and straight shaft is high as compared to the others.
So it was decided first to successfully implement Kanban for these two types.

6.1.3 Calculate Replenishment Time.

Calculation of lead time of loop (RT)

Fig 35 Replenishment Time

47
The replenishment time for every step was found out by considering the following times.

• RT1- Time to bring lot from FIFO rack to Production chute.

• RT2-waiting time on FIFO Rack
• RT3- Communication time
• RT4- Change over time
• RT5 –Prod. Lead time for whole lot size
• RT6- Time to keep lot on FIFO Rack

Replenish Time for lots from Rolling to Supermarket

OPERATIONS RT1 RT2 RT3 RT4 RT5 RT6 TOTAL
Inscription Rolling 1 15 7 20 1 44

Guide Bore Drill 1 120 180 5 306

Spinner 2 240 5 240 5 492

Collar Grinding 1 50 35 1 87

Inlet & dowell 2 300 10 200 2 514

High Pr. & C fugal 1 50 40 15 106

ECM 1 185 35 2 223

Picsal clean 1 30 25 2 58

Aqueous Clean 2 50 35 5 92

Gas carburising 25 320 390 20 755

Lab test 30 30 120 30 210

Ball Turning 5 120 95 1 221

Aqueous clean 1 40 35 2 78

Hardening 15 200 270 15 500

Lab test/Aqueous c 30 30 150 35 245

118 1780 22 1870 141 3931 min.
65.52 hr.
2.73 days

Table 6: Calculation of Replenishment Time

48
6.1.4 Calculation of no. of Kanban card:

For PULL SYSTEM,

Inventory Level = Production requirement * Replenishment time* ( 1+α )

No. of Kanban = Inventory Level / lot size

For DSLA SOFT/ HARD STAGE,

Production Requirement: -
For DSLA Normal shaft = 14400 pcs/day
For DSLA Straight shaft = 2400 pcs/day

Replenishment Time = 2.73 days

Lot size = 600 pcs

Î If Safety Factor(α) = 1

Î Inventory Level for DSLA Normal shaft = 14400*2.73*(1+1)

= 78,624
No. of Kanban For DSLA Normal shaft = 78,624/600 = 131
¾ Inventory Level for DSLA Straight shaft = 2400*2.73*(1+1)
= 13104
No. of Kanban for DSLA Straight shaft = 13104/600 = 22
Î Total Kanban =131+22
=153
Kanban at Supermarket=(24+4)=28
125 will be at production line.
Total Inventory = 153*600 =91,800 parts

If Safety Factor(α) = 1

Î Inventory Level for DSLA Normal shaft = 14400*2.73*(1+1)

= 78,624
No. of Kanban For DSLA Normal shaft = 78,624/600 = 131
¾ Inventory Level for DSLA Straight shaft = 1800*2.73*(1+1)
= 9828
No. of Kanban for DSLA Straight shaft = 9828/600 = 17
Î Total Kanban =131+17
=148
Kanban at Supermarket=(24+3)=27
121 will be at production line.
Total Inventory = 148*600 =88,800 parts
Inventory in days= 88,800/16200=5.48 days

49
If Safety Factor(α) = 2

¾ Inventory Level for DSLA Normal shaft = 14400*2.73*(1+2)

= 1,17,936
No. of Kanban For DSLA Normal shaft = 1,17,936 /600 = 197

¾ Inventory Level for DSLA Straight shaft = 2400*2.73*(1+2)

= 19656
No. of Kanban for DSLA Straight shaft = 19656 /600 = 33

¾ Total Kanban =197+33=230

¾ Kanban at Supermarket=(48+8)=56

174 will be at production line.

Total Inventory=230*600=1,38,600 pcs

If Safety Factor(α) = 3

¾ Inventory Level for DSLA Normal shaft = 14400*2.73*(1+3)

= 1,57,248
No. of Kanbans for DSLA Normal shaft = 1,57,248 /600 = 262

¾ Inventory Level for DSLA Straight shaft = 2400*2.73*(1+3)

= 26208
No. of Kanbans for DSLA Straight shaft = 26208 /600 = 44

¾ Total Kanban =(262+44)=306

¾ Kanban at Supermarket=(72+12)=84

222 will be at production line.

Total Inventory=306*600=1,83,600

50
6.1.5 Value Stream Mapping and Design:

Fig 36 VSM with In-between Inventory

6.1.6 Present proposed method to management and decide further

action.

Above results were presented to the management for taking further steps.

6.1.7 Training to associates.

In the process of training, give knowledge about

• What is Kanban?
• How the Kanban process works.
• Rules to circulate Kanban.
• How Kanban flows in total process.
• Roles of associates in Kanban process.
• Benefits of Kanban.
• To whom should they consult at the time of any problem.

51
 Fig 37: Block diagram of soft stage process.

Fig. Kanban movement at DSLA X-soft.

Fig 38. Kanban movement at DSLA X-Soft.

52
Fig.39: Kanban Calculation.

Fig 40: Associate Training.

53
6.1.8 Required project hardware material.
• Acrylic Kanban card-200 nos

• kanban post-2

• Supermarket Rack-1

• FIFO Racks-10

• Notice Board-1

Kanban cards
Production Kanban Card used to initiate the production

DSLA Normal shaft DSLA Straight shaft

2438622925 2438622923
QTY. : 600 PCS QTY. : 600 PCS

Location : 105 building Location : 105 building

Kanban card sr. no. : Kanban card sr. no. :

Supermarket for Supermarket for

DSLA HT over body DSLA HT over body
NaP NaP
MICO BOSCH MICO BOSCH

Fig 41: Acrylic Kanban card

Fig 42:Kanban Post on Supermarket.

54
6.1.9 Supermarket Design:

Supermarket is the location where the parts are stacked in the FIFO chutes along with
the kanban cards. The customer or the associate of the next process comes and takes the
part he wanted and put the production kanban on the ‘Kanban Post or kanban Board”.
Supermarket should be designed very carefully taking into consideration the future
trends so that it can fulfill the demand of the future trends as well as current market
requirements and at the same time it should not be oversized and occupy the large space.
The supermarket should be sturdy enough so that it can handle the weight of the
components. The aluminum sections available in the market are conforming to the needs
of the supermarket. The chutes should be designed according to the container type.
Again the chutes are kept inclined so that the parts slides down from one side are
coming down with the help of gravity. Bearing design is the most efficient in this
approach. There is additional chutes are provided to keep the empty trays and are also
inclined but in the opposite way.

6.1.10 FIFO between Machines

First in First out strategy was to be followed for the low runner’s components. The only
rule for to be followed by the operator in this case is no parts should be produced if the
FIFO chutes are full and otherwise parts should be produced.

In the FIFO strategy the pull is followed by the operator of the preceding process. He
has to keep an eye on the FIFO racks kept near of him. If the rack is empty, he produces
parts otherwise he does not produce. So its his responsibility to keep the Pull active. The
advantage of the FIFO racks is that instead of the foreman the responsibility is delegated
to the associates, so there is a sense of responsibility in the associates which improves
the morale of the employees and in turn the working environment.

The FIFO Racks are nothing but the chutes at inclined position. The parts are kept on the
chutes and the size of the chutes is dependent on the VT of the next and preceding
process. One type of FIFO racks that was used in the plant is shown in the fig.

55
Fig.43 Supermarket for HT over body.

Fig.44 FIFO Rack.

56
6.2 Monitoring Phase
Now as the Kanban have been implemented the next most important step is to monitor
the flow of kanban cards. This step is important so as to know whether the Kanban
implementation is successful running or not. One Kanban card represents a lot of 600
nozzles. So at regular intervals Kanban were traced. Here it was inspected that whether
the kanban process was according to the rules as mentioned in the literature. If not then
the associates were told for the corrective action.

6.2.1 Steps at Monitoring Phase

• Daily Tracking of Number of Kanban card .
• Float on line.
• Ensure lot with Kanban
• Kanban is moving in decided loop or not
• Update Notice Board
• Attend daily Production Meeting
• Attend breakdown and know the Root cause
• Always touch with customer to know demand.
• Calculation of Kanban at starting of Every Month.

6.2.2 Hurdles after Implementation

• Production of some lot without Kanban
• Loss of Kanban
• There use to be more than one Kanban card.
• In-between inventory not decided
• Stocking of Kanban at particular area.
• FIFO not follows.
• Replenishment time was more.

57
 Chapter7
Improvement Phase

1.1 Improvement Phase

• Decide in between inventory for every m/c
• Implement FIFO

Fig 45 Decided in-between Inventory with FIFO

• Again give training for kanban rules
• Strictly order by Management if there is no kanban there will no production.
• Analysis of frequent breakdown and meeting with TEF for solutions
• Emphasis on Replenish time
• For sustain of process make team in each shift and give responsibility to
Associates.

TEAM LEADER
Associate

TEAM MEMBER TEAM MEMBER TEAM MEMBER

Associate Associate Associate

58
 Fig 46 Associate Team for Kanban Control
7.1.1 Reduction of Kanban cards

After successful implementation and monitoring of Kanban & Supermarket we go for

improvement, in that first reduced the number of Kanban cards from production line and
then see the effect , in every week reduce 2 cards form line and also analysis the
Replenishment time and Value stream map by that we come what are the non value
adding time and activity ., in which waiting time for lot was more .then we go at the
Root cause of more waiting time , as result of that we do the analysis of frequent
breakdown and their impact on in-between inventory.
To solve that entire problem, arrange a brainstorming session with maintenance
Department. Reduce the causes of frequent breakdown and also work of Autonomous
Maintenance, 5S. Which help to reduce the in-between inventory and waiting time for
each lot at production line?
In this way reduce the Replenish time

Table 7 Reduced RT Time

59
 • Earlier RT2 was 1870 min, now 1611 min and in the same way RT5 from 1780
to 1470 min
• Reduced RT from 2.73 to 2.22 days

7.1.2 Status of RT & Kanban Card

Jan. 2.73 153

Feb. 2.73 153
March 2.67 150
April 2.61 147
May 2.52 142
June 2.38 134
July 2.22 124

Table 8 Monthly Status of RT and No. of Kanban

60
Chapter 8

Results
After implementation of Kanban and supermarket, we monitor the process rigorously
and achieved the following results

8.1 Quantity and Type-wise fulfillment to DSLA Body Hard stage

Quantity wise
Type wise
120

100

80
Percentage

60

40

20

0 Oct-07

Nov-07
Jan-07

Feb-07

Jun-07

Jul-07

Aug-07

Dec-07
Apr-07

May-07

Sep-07
Mar-07

Month

Fig 47 Quantity and Type-wise fulfillment

8.2 Reduction of Replenish time from 2.73 days to 2.23 days

RT(DAYS)

2.5
RT (Days)

2 RT(DAYS)

1.5

1
Jan Feb Mar Apr May Jun Jul
Month (2007)

Fig 48 Replenish Time Status

61
 8.3 Supermarket Status for Customer

Total no. of lot

Supermarket Status Target

45
40
35
Total no. of Lot

30
25
20
15
10
5
0
28 n

12 n
13 v

23 v

8 v

28 ar
ar
23 b

15 b

19 r

19 a y
29 r

9- r

n
29 ay
ay
23 c.

15 .

p
ec

Ap
No

e
a

Ju
-M

-M

-A

-A
De
-N

-N

M
-J

-J

-M

-M
-F

-F
D

9-

8-
2-

Date

Fig 49 Supermarket Status

8.4 Reduction of Inventory with Same output to Customer

Results
Inventory Reduction with Same output
Actual WIP
Target
100000 Month Actual WIP Target
Jan 91100 91800
90000
Feb 88275 91800
80000
March 88050 90000
70000 April 85661 88000

60000 May 77473 85000

June 74000 80000
50000
July 75000
40000
30000
Jan Feb March April May June July

In terms of pcs - (91800-75000)= 16800 pcs

In terms of % - 18.30 % inventory Reduced.

In terms of Cost - Mfc cost of one Nozzle up to SM is 50 Rs. (approx.)

then 0.84 MINR SAVED

Fig 50 Reduction of Inventory with Same Output

62
 Chapter 9
Conclusion & Future Scope
9.1Conclusion
The ‘KANBAN System’ or rather the ‘SIGNALLING system’ is more than a series of
techniques. It is a fundamental approach to improving the manufacturing process. In this
Global scenario Mass production system often have excess inventory, higher WIP levels
and longer quoted lead times from order to delivery. Reason behind it is use of Push
System. The challenges for a company is the reduction of in process stocks, raw
materials and exchange of in time information between all users, this can be solve by
using kanban. Implement Kanban & Supermarket in production line so supplier will
produce only whatever consumed by customer as result of it therewill be no excess
inventory , no higher WIP and no longer lead times . With implement of Kanban &
supermarket MICO BOSCH NASHIK plant in Soft stage reduce 18.30% inventory and
smooth the total line by solving all problem . In this way this also gives Motivation to
lower to top management .
Kanban helps company eliminate overproduction; increase its flexibility to respond to
customer demand, co-ordinate production of small lots and wide product variety.
Kanban is an advanced visual control system and depends on the discipline and
understanding. This is a trial and error process and should be worked on as a team.
Supervisors must pay attention to when the number of kanban is too low
It thus integrates all processes by tying them to the customer. Also with reduced WIP
inventory and uncovering hidden waste in the process, the organization as a whole is
benefited. Thus, it can be said that KANBAN is the nervous system of lean production
because it manages the production just as our brains and nerves manage our bodies.

63
9.2 Future Scope of Project.
According to pre-decided plan Kanban & Supermarket implemented at DSLA Soft
stage which shows good result at shop-floor and running successfully, after that
Management decide that with same concept this project will be implement in other shop
like Hard stage, Needle , Assembly at entire DSLA . Total process will work on Pull
system only. This is future plan for Kanban & Supermarket flow at Needle Area

Fig 51 Needle KANBAN flow

Fig 52 Future plan for Kanban & supermarket flow (2008)

64
 References

1. KANBAN AND JUST-IN-TIME AT TOYOTA, David J.LU Japan Management

Association; Productivity Press ISBN 0-915299-48-8

2. INTEGRATING KANBAN WITH MRP II, By Raymond S.Louis ISBN1-56327-182-6

3. JIT FACTORY REVOLUTION, By Hiroyuki Hirano ISBN 0-915299-44-5

4. TOYOTA PRODUCTION SYSTEM, By Taiichi Ohno ISBN 0-915299-14-3

5. Strategies and Tactics for Implementing TPM and Lean Production, 12 monthly
Issue
LEAN MANUFACTURING ADVISOR

6. THE SAYING OF SHIGEO SHINGO Key strategies for plant Improvement, By

Shigeo shingo , ISBN 0-915299-15-1

7. The Japan Institute of plant Maintenance, AUTONOMOUS MAINTENANCE

ISBN 1-56327-081-1

8. Integrating Kanban with MRP-II Automating a pull system for enhanced JIT
inventory management ISBN1-56327-182-6 by Raymong S. Louis.

9. JIT factory Revolution a pictorial guide to factory Design of the future ISBN 0-
915299-44-5- by Hiroyuki Hirano

10. Arrival first Queuing Network with application in kanban production system - by
Richard JBoucherie, Xiuli Chao, Masakiyo Miyazawa, vol-51,year 2003

11. Push and Pull Relationships- by Seong-Seop Kim, Choong ki Lee, vol-29
,year2002

12. A Decomposition Method for Multi - Product Kanban system with setup times and
lost sales- by Georg N Krieg, Heinrich Kuhn, vol-34, year 2002

13. Comparing Reactive kanban system- by Katsuhiko Takahashi, vol-41, year 2003

14. Improving the performance of job shop manufacturing with Demand Pull
production control by reducing setup / processing time variability- by Jing-Wen Li, vol-
84, year-2003

15. Comparative modeling of multi-stage production - inventory control policies with

lot szing- by George Liberopoulos and Yves Dallery, vol-41, no- 6,1273-1298, year-
2003.
16. kanban for shop floor- by the Productivity press Development Team

17. One - piece flow cell Design for a transforming the production Process, ISBN0-
915299-33-X by Kenichi sekine

65
18. kanban and JIT at TOYOTA- by David J. Lu

19. The Productivity Press Development Team OEE FOR OPERATORS, ISBN 1-
56327-221-0

20. The Productivity Press Development Team KANBAN FOR SHOPFLOOR, ISBN 1-
56327-269-5

21. By The Productivity Press Development Team 5S FOR OPERATOR, ISBN 1-

56327-123-0

22. By The Productivity Press Development Team JUST-IN-TIME FOR OPRATOR,

ISBN 1-56327-134-6

23. www.bosch/BPS nashik.com

24. Analysis and animation of KANBAN system in the car supplier industry , By Jens
Nothroff 2002 p1-138

25. 1981, Kanban are discovered American Machinist,February:222

26. KANBAN –The coming revolution ? productivity Bodek N ED 1980 1 (7) :1-2

27. 1981 a What makes the Toyota production system really tick? Industrial
engineering Monden,Y January 36-46

28. 1981 b Adaptable kanban system helps Toyota maintain just in time production,
industrial engineering Monden Y may 28-46

29. 1981 study of Toyota production system from industrial engineering viewpoint
.Japan management association. Shingo S

30. 1988 5s animation, Seiri, Seiton, Seiso, and Seiketsu , Shitsuke Honda j.

66
 Appendix (i)
Supermarket Float
28 Nov. 9 27
Date Total no. of lot Target
30 Nov. 8 27
2-Nov 12 27
3 Dec. 12 27
3-Nov 6 27
4 Dec. 9 27
4-Nov 16 27
7 Dec. 16 27
5-Nov 22 27
8 Dec. 10 27
6-Nov 12 27
12 Dec. 4 27
7-Nov 8 27
13 Dec. 19 27
8-Nov 6 27
14-Dec 12 27
9-Nov 6 27
17 Dec. 12 27
10-Nov 12 27
18 Dec. 13 27
12-Nov 4 27
19 Dec. 12 27
13-Nov 4 27
20 Dec. 16 27
14-Nov 4 27
21 Dec. 14 27
15-Nov 8 27
22 Dec. 20 27
16-Nov 5 27
23 Dec. 22 27
17-Nov 5 27
24 Dec. 23 27
18-Nov 10 27
28 Dec. 21 27
19-Nov 11 27
2-Jan 32 28
20-Nov 7 27
7-Jan 27 28
21-Nov 9 27
9-Jan 35 28
22-Nov 7 27
10-Jan 31 28
23-Nov 13 27
11-Jan 29 28
24-Nov 9 27
12-Jan 28 28
25-Nov 7 27
14-Jan 27 28
26 Nov. 14 27
15-Jan 25 28
27Nov. 19 27
16-Jan 36 28

67
17-Jan 31 28 25-Feb 27 27

18-Jan 33 28 26-Feb 28 27

19-Jan 35 28 27-Feb 30 30

21-Jan 27 28 08-Mar 31 30

22-Jan 35 28 09-Mar 30 30

23-Jan 38 28 11-Mar 32 30

24-Jan 35 28 12-Mar 30 30

25-Jan 30 28 13-Mar 30 30

28-Jan 36 28 14-Mar 30 30

29-Jan 35 28 15-Mar 30 30

1-Feb 35 27 16-Mar 30 30

4-Feb 30 27 18-Mar 31 30

5-Feb 34 27 20-Mar 30 30

6-Feb 33 27 21-Mar 30 30

7-Feb 34 27 22-Mar 30 30

8-Feb 28 27 23-Mar 28 28

9-Feb 33 27 25-Mar 29 28

11-Feb 35 27 26-Mar 28 28

12-Feb 40 27 27-Mar 29 28

13-Feb 36 27 28-Mar 30 28

14-Feb 32 27 29-Mar 30 28

15-Feb 30 27 30-Mar 32 28

16-Feb 32 27 01-Apr 29 28

18-Feb 30 27 02-Apr 30 28

19-Feb 30 27 03-Apr 30 28

20-Feb 27 27 04-Apr 31 28

21-Feb 27 27 05-Apr 28 28

22-Feb 27 27 06-Apr 28 28

23-Feb 28 27 08-Apr 28 28

68
09-Apr 28 28 08-May 29 28

10-Apr 28 28 09-May 30 28

11-Apr 28 28 10-May 28 28

12-Apr 28 28 11-May 29 28

13-Apr 28 28 12-May 31 28

14-Apr 28 28 13-May 30 28

15-Apr 28 28 14-May 28 28

16-Apr 28 28 15-May 29 28

17-Apr 28 28 16-May 32 28

18-Apr 30 28 17-May 28 28

19-Apr 31 28 18-May 30 28

20-Apr 28 28 19-May 32 28

21-Apr 31 28 20-May 29 28

22-Apr 29 28 21-May 28 28

23-Apr 30 28 22-May 29 28

24-Apr 28 28 23-May 28 28

25-Apr 28 28 24-May 28 28

26-Apr 28 28 25-May 28 28

27-Apr 29 28 26-May 29 28

28-Apr 26 28 27-May 30 28

29-Apr 31 28 28-May 29 28

30-Apr 28 28 29-May 28 28

01-May 32 28 30-May 27 28

02-May 29 28 31-May 31 28

03-May 34 28 01-Jun 29 28

04-May 31 28 02-Jun 30 28

05-May 29 28 03-Jun 28 28

06-May 28 28 04-Jun 27 28

07-May 30 28 05-Jun 28 28

69
 06-Jun 28 28 10-Jun 27 28

07-Jun 28 28 11-Jun 29 28

08-Jun 28 28

09-Jun 29 28

Appendix(ii)

Straight Shaft Production

Fulfillment
Month Requirement, Qty
% Value
Jan 36000 80 28800
Feb 108000 78 84240
Mar 60000 91 54600
Apr 54000 85 45900
May 54000 86 46440
Jun 72000 87 62640
Jul 72000 80 57600
Aug 72000 82 59040
Sep 42000 75 31500
Oct 54000 80 43200

WIP DATA AT SOFT STAGE 2006

Month WIP(pcs)/Day Final output/Day WIP(Days) Target

JAN 89600 11200 8 5
FEB 94300 11500 8.2 5
MAR 92040 11800 7.8 5
APR 98750 12500 7.9 5
MAY 96000 12800 7.5 5
JUN 100575 13500 7.45 5
JUL 100080 14000 7.2 5
AUG 105000 15000 7 5
SEP 112500 15000 7.5 5
OCT 106400 15200 7 5

70