Lean Assessment of Component Manufacturing in Machine Tool Industry.

Lean manufacturing is introduced by Toyota for their mass manufacturing assembly lines to reduce wastage in production. Since then Lean manufacturing has been traditionally applied to mass manufacturing (high volume-low mix). However, for low volume-low mix environments like component manufacturing, all the conventional lean concepts and approaches may not be appropriate. They require their own assessment system due to their inherent complexity. Measurement of leanness for high-volume low mix (mass production) environments has received sufficient attention. This unfortunately is not true for low volume-high mix environments. The Toyota Production System (TPS) was designed for design and operation of assembly line-type facilities. However, this type of low-variety high-volume (LVHV) manufacturing system differs significantly from the typical high-variety low-volume (HVLV) manufacturing system. A frame work is developed at IIT Delhi to assess the leanness of assembly lines in machine tool manufacturing industry, and it has been validating by using the inputs from machine tool manufacturing industry. As a part of my internship I have used that frame work for the lean assessment of machine tool assembly line at BFW Machine Tool Manufactures Limited, Bangalore. The objective of this project is to develop an assessment system that can be specifically used for component manufacturing environment in machine tool industry. The Frame work used to assess the milling machine assembly line

Step 1. Identify the category of product in the organization Example of categories is 1. General purpose machines 2. Special Purpose Machines Step 2. Identify and define value streams for each category A value stream is a series of all actions required to fulfil a customer's request, both value added and not. A value stream contains a product or a family of products that have similar material and information flows. Examples of value streams Value stream 1. Milling Machines Value stream 2. CNC milling machines Step 3. For each value stream we then identify the type of possible products For eg: The product varieties of milling machines are: 1. Vertical milling machines 2. Horizontal milling machines Step 4: Define sub-value streams for each of product types The sub-value streams for Horizontal milling machines are: 1. Component Manufacturing 2. Bed sub assembly 3. Spindle sub assembly

Step 5. For each of the sub value streams, define Key Performance Areas (KPA) As an example, few possible KPAs are given below 1. Cost 2. Quality 3. Lead Time 4. On Time Delivery Step 6: For each of the KPAs, define a performance measure (KPI) Key performance Indicators, also known as KPI or Key Success Indicators, helps an organization define and measure progress toward organizational goals. As an example, KPAs and their performance measures are given below 1. Cost: The term cost refers to the cost of conducting activity including labour, power, rent, inventory and other activities. The performance measure would be taken as Non Value added Cost/Total Cost, where Non vale added Cost refers to the sum o supporting cost, Risk Reducing Cost and absolute Non Value adding Cost. 2. Quality: The term quality refers to conformance to performance, functional and customer specifications. The performance measure has been taken as % First Time Pass 3. Lead Time: This refers to the specified time required to conduct an activity. The performance measure is Non value added time / Total time Where Non Value added Time refers to the sum of supporting time, Risk Reducing time and Absolute Non Value Adding Time. 4. On Time Delivery: This refers to the extent to which the products are delivered on time to internal or external customers. The performance measure is % of jobs delivered on time. Step 7: For each of the KPAs, identify the contributing factors. As an example the contributing factors for cost and Quality can be 1. Value Adding Activity (VAA) It increases the worth of a product or service and for which the customer is willing to pay. 2. Support Activity: (SA) it incurs expenditure of time and /or money, but does not contribute to the customer satisfaction, service or value but not unnecessary as they include essential functions such as accounting, inspection, storage transportation etc. 3. Risk Reducing Activity (RRA) It focuses on preventing or minimizing the effects of failures. 4. Absolute Non Value Added Activity (ANVAA) These do not add any value whatsoever to do the product. For example activities such as recall, rework, and waste of effort. Step 8: For each of the contributing factors, identify the root causes. As an example, few possible components for Manufacturing Cost are given below VAA- Machining cost, Assembly Cost SA- Maintenance cost, set up cost, loading & unloading cost. RRA Inspection cost, testing cost ANVAA- Inventory holding cost Step 9 : For each of the root causes, define the lean tools which would help counter those causes As an example, few possible Lean tools to counter the Process Quality are 1. Standardized work

Step 10: For each of the Lean Tools, define the parameters which would implement these Lean Tools As an example, to implement TQM the following need to be done

2. TQM

1. Benchmarking 2. Quality Circles

Assessment System for Component Manufacturing in Machine Tool Industry Assessment system for component manufacturing is will also be using the same frame work. But as it involves so many products and different routes, value stream mapping of individual components will be difficult. So instead of collecting data for individual components and making value streams, it is decided to map the entire shop floor into simulation software (Delmia Quest) and simulate the actual scenario to generate the data required assessment. After generating the data, leanness is assessed based on the parameters Cost, Quality, Lead Time and On Time Delivery.