TPM And Kanban Lead To Higher Profitability
TPM pillar of Total Lean Management (TLM) increases machine OEE to 85%.
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Ahmedabad, Gujarat, India (ePressReleases.org) Jan 19, 2010 - TPM (Autonomous Maintenance / Jishu Hozen ) and Kanban lead to dramatic changes in PET Strap manufacturing Plant. PET Strap manufacturing plant in Thailand, has an installed plant capacity of 265 tons, with a customer base in Asia Pacific, Australia region.
The plant was manufacturing only 150-160 tons / month, against the monthly demand of nearly 250 tons. The profitability was drained out because of high production costs and overheads and rejection of nearly 10%.
Add Value Consultant team started off in May 09 with the Gemba walk and primary data collection. Primary Data revealed the health of the organization; critical but could be improved.
The observations:
Lack of awareness of basic lean tools
5S not applied
Die change over time approx 4 hours
Machine down time and idle time extremely high
Required spares not available
Frequent customer complaints of delayed shipments and quality.
Low finished goods velocity
Customer satisfaction index = 60%
The Lean Transformation Process:
A TPM team was formed and the pillar head was appointed to drive and motivate the team. The team was receptive to the new learnings and subsequently sustaining the changes.
The data was collected for the previous months and OEE, MTBF and MTTR were calculated. All the machine parameters were far below the normal standards. Simple quality tools such as Ishikawa Diagram, 5 Why analysis were applied. The root cause for each problem was identified and poka yoke (error proofing) techniques were executed.
The die exchange time was reduced from 4 hours to 25 minutes (phase1), with target time less than 9 minutes. This increased the run time of the machine, required for higher production to meet the increasing demand.
Inventory management, Product Standardization and Spares management (kanban) also ensured the down time of the machine was drastically reduced.
In Nov the machine produced more than 13% than the designed capacity, leading to lower costs of manufacturing (reduced by nearly 5%).With the increased reliability of the machines, finished goods were produced on JIT basis, to replenish the sales.
Lower through put time across the value chain increased the inventory turns and thereby increased the profitability of the organization. Currently inventory models ( kanban ) are being extended to the distribution and logistics.
Impact of Total Lean Management:
OEE improved from 60% to 87%
Die change over time reduced from 4hrs to 25 minutes ( target time 9 mins)
SKUs reduced from 45 to 8
Rejection reduced from 10% to 3%
Overhead costs reduced by 25%
Customer satisfaction Index improved from 60 % to 88%
The plant has now surplus cash reserves and is looking forward to increasing the manufacturing capacity and thereby increase the customer base.
About Add Value Consulting Inc.
Add Value Consulting Inc. (AVCI) has been instrumental in assisting several organizations transform in TOTALLITY in the Asia Pacific - Africa region using its unique onsite tools - Value Adding Workshops / Lean Workshops and Value Adding Counseling. |
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| Company |
Add Value Consulting Inc.
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| Location |
Ahmedabad, Gujarat, India
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| Person | Mr. Nilesh Arora |
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| Phone | 91-9824009792 |
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| Web | http://www.avci-lean.com/ | |
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| Blog | lean manufacturing tpm | |
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January 18 2010 PR Business Economy Press Release
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