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Journal of Engineering, Design and Technology

Development of value stream map for an Indian automotive components


manufacturing organization
S. Vinodh T. Selvaraj Suresh Kumar Chintha Vimal K E K
Article information:
To cite this document:
S. Vinodh T. Selvaraj Suresh Kumar Chintha Vimal K E K , (2015),"Development of value stream map
for an Indian automotive components manufacturing organization", Journal of Engineering, Design
and Technology, Vol. 13 Iss 3 pp. 380 - 399
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(2013),"Development of value stream map for achieving leanness in a manufacturing organization",
Journal of Engineering, Design and Technology, Vol. 11 Iss 2 pp. 129-141 http://dx.doi.org/10.1108/
JEDT-01-2010-0007
(1997),"The seven value stream mapping tools", International Journal of Operations &
Production Management, Vol. 17 Iss 1 pp. 46-64 http://dx.doi.org/10.1108/01443579710157989
(2014),"Lean manufacturing implementation using value stream mapping as a tool: A case study from
auto components industry", International Journal of Lean Six Sigma, Vol. 5 Iss 1 pp. 89-116 http://
dx.doi.org/10.1108/IJLSS-04-2012-0002

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JEDT
13,3
Development of value stream
map for an Indian automotive
components manufacturing
380 organization
Received 4 August 2010 S. Vinodh, T. Selvaraj, Suresh Kumar Chintha and Vimal K.E.K.
Revised 17 February 2012
Accepted 21 February 2012 Department of Production Engineering, National Institute of Technology,
Tiruchirappalli, India
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Abstract
Purpose – This paper aims to apply Value Stream Mapping (VSM) for enabling leanness in an Indian
automotive components manufacturing organization.
Design/methodology/approach – The study was initiated with the selection of product line,
construction of current state map, identification of various wastes and the development of future state map.
The improvement proposals were subjected to implementation and performance measures were quantified.
Findings – The expected outcomes of the study include the quantification of wastes, improvement in
manpower productivity, quality improvement and throughput time reduction.
Research limitations/implications – The implementation study has been conducted in only one
manufacturing organization. The experiences gained by the conduct of this implementation study are
feasible and deployable in similar manufacturing organizations.
Practical implications – The results of the study indicated that significant improvement in lean
characteristics is possible as a result of the implementation of VSM.
Originality/value – The paper reports a real-time study conducted in an automotive components
manufacturing organization. Hence, the contributions are original.
Keywords Lean manufacturing, Value stream mapping, Lean production, 5S, Pull production,
Time reduction
Paper type Case study

1. Introduction
The increasing competition has been forcing the manufacturing organizations to
transform their current manufacturing paradigm (Chen et al., 2006). The history of
development of Production Systems is as follows. The evolution of manufacturing
system starts with Craft Production System (1890-1910) in Automobile manufacturing,
and, in the year 1910, Ford Motor Company introduced Mass Production System which
is based on economies of scale. After the World War II, an advanced production system
called Toyota Production System (TPS) (1950 onwards) was introduced in Toyota
Motor Company; then, in 1980, lean manufacturing was evolved by integrating
advanced tools from world-class manufacturing system and TPS which also includes
Journal of Engineering, Design
and Technology Supply Chain Management. The lean manufacturing concept was originated from TPS
Vol. 13 No. 3, 2015
pp. 380-399
and Just-in-Time (JIT) concepts. The contemporary manufacturing organizations have
© Emerald Group Publishing Limited
1726-0531
been witnessing a transition from mass manufacturing to lean manufacturing. Lean
DOI 10.1108/JEDT-08-2010-0054 manufacturing is focused on the reduction of wastes and non-value-added activities of
different types (Lummus et al., 2006). Lean operations eliminate obvious wastes, reduce Development
variability, reduce inventory and thereby reduce cost. The essence of leanness is of value
efficient use of resources through the minimization of wastes.
Lean manufacturing has various definitions. The definition given by National
stream map
Institute of Standards and Technology is a “Systematic approach of identifying and
eliminating wastes (non value added activities) through continuous improvement by
flowing the product at the pull of customer in pursuit of perfection”. Another way of 381
defining it is “integrated manufacturing system intended to maximize capacity,
reutilization and minimize buffer inventories through the minimization of system
variability” (Narasimhan et al., 2006). The majorly occurring wastes in any
manufacturing process are: over production, over processing, waiting time,
transportation, defects, inventory and storage. Some of the leanness parameters include
lead time, total cycle time, work in process inventory, on time delivery, defects in parts
per million (ppm) and uptime.
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The principles of lean manufacturing are waste elimination, streamlining of


processes, quality at the source and continuous improvement. Some of the
tools/techniques of lean manufacturing include VSM, 5S, Kanban, Kaizen, Total Quality
Management (TQM), Total Productive Maintenance (TPM), Single Minute Exchange of
Die (SMED), Cellular layout, Pull production system, Poka Yoke and Visual controls
(Abdulmalek and Rajgopal, 2007; Doolen and Hacker, 2005). The implementation of lean
practices in the Indian context has a massive scope. VSM tool is very important to
implement in Indian industry to streamline the process because it is the first step in
taking the industry toward lean manufacturing (Vinodh et al., 2010, Abdulmalek and
Rajgopal, 2007). One of the vital tools of lean manufacturing is VSM. But the practical
feasibility of using VSM in Indian manufacturing scenario needs to be tested (Vinodh
et al., 2010). This forms the motivation for the conduct for the study and also gives rise
to a need for the organization to eliminate the existing wastes in the assembly line of the
case organization. VSM has been found vital for removing the wastes. VSM has been
implemented in the case organization by keeping the implementation procedure adopted
in Japanese companies as a benchmark (Shah and Ward, 2003).

2. Literature review
The literature has been reviewed from the perspectives of lean manufacturing and VSM.

2.1 Literature review on lean manufacturing


Hummels and Leede (2000), in their article, discussed about two important
organizational concepts – lean production and socio-technical systems design – and
evaluated on their reflective capacity and their (moral) outcomes. Lean manufacturing
and lean construction techniques share many common elements despite the obvious
differences in their assembly environments and processes (Salem et al., 2006). Holweg
(2007) has investigated the evolution of the research at the MIT International Motor
Vehicle Program that led to the conception of the term “lean production”. Before
implementing lean manufacturing in an organization, the current leanness level of the
organization needs to be assessed. For this purpose, a leanness measurement model
incorporated with multi-grade fuzzy approaches has been developed. Vinodh and
Chintha (2009), Vinodh et al. (2010) have presented the case study conducted in the
organization, and they explained how to use VSM in Indian industrial scenario.
JEDT The three contextual factors, namely, plant size, plant age and unionization status,
13,3 have some effect while implementing 22 manufacturing practices that are key facets of
lean production systems. Whereas by implementing bundles such as JIT, TQM, TPM
and Human Resource Management contributed substantially to the operating
performance of plants (Shah and Ward, 2003). Rivera and Chen (2007) have presented
the expected impact of lean implementations on the Cost Time Profile (CTP) and Cost
382 Time Investment. The CTP is proposed as a useful tool for the evaluation of the
improvements achieved by the implementation of lean tools and techniques. Shah and
Ward (2007) addressed the confusion and inconsistency associated with “lean
production”. Crute et al. (2003) have discussed difficulties in implementing the key
drivers for lean in aerospace. The lean manufacturing role in supply chain has been
greatly improved. Rivera et al. (2007) have discussed the concepts, approaches,
challenges and future development. Basic concepts and impacts of lean thinking have
been introduced, followed by the issues of applying lean thinking in supply chain
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management.

2.2 Literature review on VSM


Hines et al. (1999) have described the application of a new variant of process
benchmarking called VSM to the development of a supplier network around a
prominent distributor of electronic, electrical and mechanical components. Hines and
Rich (1997) have outlined a new typology and decision-making process for mapping the
value stream or supply chain. The typology of the seven new tools was presented in
terms of the seven wastes. The seven tools of VSM are Process Activity Mapping,
Supply Chain Response Matrix, Production Variety Funnel, Quality Filter Mapping,
Demand Amplification Mapping, Decision Point Analysis and Physical Structure. Lasa
et al. (2008) have evaluated how the VSM is put into practice. It is understood that there
is a correlation between theory and practice. That is why this research tries to answer
these questions: Is effective VSM really in practice? How much time and resources are
necessary for its correct application? Which are the key aspects for the teams to obtain
as much performance in use as possible? What aspects should the VSM theory improve
to make it a reference tool? Sullivan et al. (2002) have illustrated an equipment
replacement decision problem within the context of lean manufacturing
implementation. In particular, they demonstrated how the VSM suite of tools can be
used to map the current state of a production line and design a desired future state.
Further, they provided a roadmap for how VSM can provide necessary information for
analysis of equipment replacement decision problems encountered in lean
manufacturing implementation. Abdulmalek and Rajgopal (2007) have described a case
where lean principles were adopted for the process sector for application at a large
integrated steel mill. Seth et al. (2008) have identified and addressed various wastes in
the supply chain of the edible cottonseed oil industry (specifically the processing side)
using a VSM approach to improve productivity and capacity utilization in the Indian
context. Wastes are then individually attacked to reduce or eliminate them from the
system. Suggestions to make the whole chain more productive has been generalized and
replicated in the context of other developing countries.

3. Methodology
The methodology followed during this study is shown in Figure 1.
Literature review on Lean manufacturing and VSM Development
of value
stream map
Selection of VSM for implementation

383
Study of the manufacturing processes followed in the organisation

Development of current state value stream map for the identified product line
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Identification of wastes

Computation of improvement in various leanness parameters

Figure 1.
Development of future value stream map and implementation in the case organization
Methodology

First, the literature on lean manufacturing and VSM was reviewed. VSM was selected as
the tool to overcome the problem faced by the case organization. Then data collection
was done, and, based on the data collected, further calculations were done. Various
activities were identified with the micro-level analysis in the shop floor. Based on the
data collected, activity categorization was done to exactly identify the useful activity
and wastes. Then Current State Map for the identified product line was developed. Then
brain storming session is being organized to analyze the current state map and some
improvement proposals were arrived in consultation with the executives of the
organization. These improvement proposals were deployed in the future state map.
The inferences were derived from the future state map. Finally, the developed future
state map was implemented in the case organization. The results have been derived
from the trial implementation of the proposed future state map.

4. Case study
The case study was carried out in automotive components manufacturing organization
located in Tamil Nadu, India (hereafter referred to as ABC).

4.1 About the case company


ABC produces transmission parts used in automobiles and it is a supplier for many
leading automotive manufacturers. ABC is an ISO 9001:2000 company. The product is a
component of transmission gear. Product is of two types depending on whether heat
JEDT treatment is done or not. They are Rack Piston (RP) soft (before heat treatment) and RP
13,3 hard (after heat treatment). The executives of the case company felt that VSM needs to
be applied for RP soft product line.

4.2 About RP soft line


RP is one of the internal components of the transmission gears. If it is used without any
384 heat treatment; it is called as RP soft. This product line was thoroughly analyzed to take
the process sequence. P1-P11 represent the various processes involved in the fabrication
of RP.

4.3 Current State Map


The Current State Map is the baseline view of the existing process from which all
improvements are measured. The Current State Map is a representation of pictures
consisting icons to represents all entities and operations in the value chain. They are a
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snapshot in time of how the value stream was actually operating at a given point in time.
4.3.1 Takt time. It is the pace of customer demand. Takt time is the rate at which a
company must produce a product to satisfy customer demand and was calculated using
equation (1) (Abdulmalek and Rajgopal, 2007):

Available production time


Takt time ⫽ (1)
Total daily quantity required

4.3.2 Pitch. Pitch is the amount of time based on Takt time required for an upstream
operation to release a predetermined pack out quantity of work in process (WIP) to a
downstream operation and was calculated using equation (2):

Pitch ⫽ Takt time ⫻ Pack out Quantity (2)

4.3.3 Available time. The available time is the difference between total production time
and planned down time and was calculated using equation (3):

Available time ⫽ Total production time ⫺ Planned down time (3)

(Vinodh et al., 2010)


4.3.4 Uptime. It is the ratio between the actual operating time and available
production time and calculated using equation (4):

Actual operating time


Uptime ⫽ (4)
Available production time

(Vinodh et al., 2010)

Actual operating time ⫽ Available production time ⫺ Changeover time

4.3.5 Days of WIP on hand. It is the ratio between the Total amount of WIP between
process to the number of parts shipped per day and was calculated using equation (5):

Total amount of WIP between processes


Days of WIP on hand ⫽ (5)
Number of parts shipped per day
(Vinodh et al., 2010) Development
The customer requirements and supplier shipment information are as given below: of value
Customer requirements:
Average demand ⫽ 9,000 units per month ⫽ 360 per day.
stream map
Shipping month ⫽ 25 days.
Units per trolley ⫽ 100 (collected from industry shop floor).
Trolleys per day ⫽ 3.6-4. 385
Supplier information:
Supplier name ⫽ XYZ Forgings.
Shipment ⫽ 2,250/weekly (collected from industry shop floor).
The following data were collected from the shop floor. They are called as ABC process
attributes.
4.3.6 ABC process attributes. Availability.
Total available production time ⫽ 8 ½ hours per shift (collected from industry shop
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floor) ⫽ 510 minutes.


Scheduled planned downtime ⫽ 15 minutes (Daily Review Meeting) ⫹ 10 minutes
(Tea break) ⫹ 30 minutes (lunch break) (collected from the industry shop floor) ⫽ 55
minutes.
Available production time ⫽ (510 ⫺ 55) minutes ⫽ 455 minutes ⫽ 27,300 seconds.
Shipping:
Location ⫽ End of the line.
Frequency/method ⫽ Daily/Trolley.
A sample of attributes related to processes are shown below here and the remaining
are shown in Appendix.
Process P11:
Cycle time ⫽ 30 seconds (collected from industry shop floor).
Changeover time ⫽ 0.
Availability ⫽ 27,300 seconds.
Uptime ⫽ 100 per cent.
Number of operators ⫽ 1.
This operator looks after the operations P11 and P10.
WIP ⫽ Number of units between P10 and P11 ⫽ 1 (collected from the industry shop floor).
Days of WIP on hand ⫽ 1/360 days ⫽ 4 minutes.
After collecting the data from the shop floor about various manufacturing processes and
using the standard icons, the Current State Map was developed by the following procedure.
Customer icon was drawn in the upper right corner and supplier icon was drawn in the upper
left corner. The same icon was used to represent both supplier and customer. Production
control icon was drawn in the middle of the supplier and customer. The information flow
regarding forecasts and orders was represented using the arrows. Customer sends monthly
forecasts and weekly orders to the production control department. The customer
requirements are entered to a box which is drawn below the customer icon. Production
control department sends this information to production supervisor daily and in turn he
sends the information to operator’s daily shift wise. Production control sends monthly
forecasts and weekly orders to the supplier XYZ forgings. The supplier delivers weekly
shipment through a truck which is drawn below supplier icon. The data boxes are drawn for
all the manufacturing operations indicating number of operator, cycle time, changeover time
JEDT (per shift), availability and uptime of the machine. From the last operation in the line, an
13,3 arrow was drawn toward the customer, which goes through a trolley icon. A WIP icon was
drawn in between every two operations which represents that the items that are waiting for
upstream operation which, in turn, is a non-value-added activity. A time line was drawn to
indicate value-added time and non-value-added time. A box was drawn below the time line
and data about lead time and total cycle time were entered. The sum of all days of WIP gives
386 the lead time and sum of all cycle time gives the total cycle time. The Current State Map
developed for RP soft line is shown in Figure 2.

4.4 Future State Map


The Future State Map represents the vision of how the project team sees the value
stream at a point in the future after the improvements have been made. The concern is
on mapping the future state with identification of the opportunities to design a more
efficient and waste-free value stream. After carefully analyzing the shop floor at micro
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level and observing the past data concerning major losses, some improvement proposals
have been derived.
• As the WIP is more before the first operation, to reduce the lead time, it is proposed
to adopt the single piece flow or one more material movement operator is
introduced from store to the start of the line.
• As the line is characterized with cluttered environment, 5S was recommended
with more emphasis on third 5S improvement, i.e. “Shine”.
• As frequent breakdowns are occurring at machines of P1 and P2 which, in turn,
affects the operation of the entire line, TPM study was recommended to adopt for
the machines used for P1 and P2.
• One of the key observations made was that the operators are doing gauge
inspection after machining, keeping the component loaded in the machine which
reduces the available time of the machine. To overcome this problem, it is
recommended to provide proper training to the operators.

These improvement proposals are incorporated and Future State Map is constructed
and the performance measures are estimated. After arriving at the improvement
proposals, the Future State Map was developed using the same procedure as that
followed for developing current state map in the following way.
A Kaizen burst icon was used to represent the first improvement proposal, i.e.
introducing one more operator to reduce the WIP. The data boxes are drawn for all the
manufacturing operations indicating the number of operators, cycle time, changeover time
(per shift), availability and uptime of the machine. Two Kaizen burst icons were used at P1
and P2 machines to improve their utilization. The Kaizen burst icon indicating 3rd 5S
improvement is drawn at P5, P6 and P7. From the last operation in the line, an arrow was
drawn toward the customer who goes through a trolley icon. A WIP icon was drawn in
between every two operations which represents the items that are waiting for upstream
operation which, in turn, is a non-value-added activity. A time line was drawn to indicate
value-added time and non-value-added time. A box was drawn below the time line, and the
data about lead time and total cycle time were entered. The sum of all days of WIP generates
lead time and sum of all cycle time generate total cycle time. Now, the Future State Map is
developed which is shown in Figure 3.
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387
of value

Current State Map


Figure 2.
stream map
Development
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13,3

388
JEDT

Figure 3.
Future State Map
4.5 Total productive maintenance Development
In the part of the TPM study for the machines used for P1 and P2, their past six-month of value
breakdown data were collected, and Fault Tree Analysis was done as shown in
Figure 4 to find the major and minor causes to reduce the attending time for repairs.
stream map
After analyzing the data, the causes are tabulated and presented in Table I. From
these data, the probability failures of the causes were estimated and were used to
calculate the system failure (breakdown) which, in turn, gives the system reliability. 389
4.5.1 Reliability calculation. Reliability of a unit or product is the probability that the
unit performs its intended function adequately for a given period of time under the
stated operating conditions or environment.
4.5.2 Probability failure of sub-causes. P(x1) ⫽ 0.0056, P(x2) ⫽ 0.0056, P(x3) ⫽ 0.0056
(collected from industry shop floor).
P (A) ⫽ P(x1) ⫹ P(x2) ⫹ P(x3) ⫺ P(x1) ⫻ P(x2) ⫺ P(x2) ⫻ P(x3) ⫺ P(x3) ⫻ P(x1) ⫹
P(x1) ⫻ P(x2) ⫻ P(x3) ⫽ 0.0166.
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P (B) ⫽ 0.0221, P (C) ⫽ 0.0276, P (D) ⫽ 0.0111, P (E) ⫽ 0.0056, P (F) ⫽ 0.0111.
Probability of system failure P(S) ⫽ 0.0925.
Reliability of system ⫽ 1 ⫺ P(S) ⫽ 1 ⫺ 0.0925 ⫽ 0.9075 ⫽ 90.75 per cent.
Similarly, reliability was calculated and Fault Tree Analysis was done for machine II.
The breakdown data of both the machines were analyzed and compared for identifying
frequently occurred failures and they analyzed up to the basic levels to develop the Fault
Tree Diagrams for each failure.
A Pareto chart was developed using the above data and is shown in Figure 5.
From the above Pareto chart, it is observed that the frequently occurring causes were
identified as a component that comes out from the spindle, servo alarm, and they were
analyzed to develop the Fault Tree Diagrams, respectively. As an excerpt the Fault Tree
Diagram for cause “component comes out from spindle” was shown in Figure 6.

4.6 Single piece flow


Single piece flow refers to the concept of moving one workpiece at a time between
operations within a work cell. In the present manufacturing line, the single piece flow
was made on a trial basis to observe the constraints and to find the solution for the same.
In the trial run, the following constraints were observed.
4.6.1 Constraint 1: more cycle time in machines 1 and 2. Shift target ⫽ 180.
Capability of HWA-I, II is ⫽ 70 ⫹ 70 ⫽ 140.
Subcontract ⫽ 40.
4.6.1.1 Proposal. To meet the target and to adopt the single piece flow in the line, the
cycle time of the machines 1 and 2 must be reduced by 22.67 per cent. Cpk study was
conducted for machine 1 to reduce the cycle time. Reconditioning plan need to be
deployed in machine 2 for increasing its capability.
4.6.2 Constraint 2: tool changeover. The tool changeover times for work station P3 is
observed as follows and during which WIP would be built-up before the same machine.
The time split up is presented in Table II.
The changeover time for tapping tool and recessing tool ⫽ 19 minutes 25 seconds.
4.6.2.1 Proposal. The tool fetching time could be reduced in existing practice by
means of placing a tag indicating the preplanning.
4.6.3 Constraint 3. Before P9 machine while tool changeover 3 to 4 numbers of WIP
is getting piled up.
JEDT
13,3

390
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Figure 4.
Fault Tree Diagram
for machine 1

4.6.3.1 Solution. Currently, in the 12-slot tool magazine, only 5 slots are being used. The
unused tool slots in 12-slot tool magazine could be used to improve the utilization
reducing the tool changeover time.
4.6.4 Constraint 4. When the operator is attending the gauge inspection of
components, machines are idle and WIP is accumulated.
4.6.4.1 Solution. Instead of inspecting the single component with all the gauges, each
component needs to be inspected for a particular dimension using a single gauge.
Total
Development
Serial no. Problem Sub-cause Frequency occurrence of value
stream map
1 Door not OK (A) Door side open/close connecting link 1 3
screw problem(x1)
Heavy air leakage(x2) 1
Door fixing screw fell down(x3) 1
2 Component comes out Jaw boring not proper(x4) 1 4
391
from the spindle (B) Wrong entry(x5) 1
Low chuck pressure(x6) 2
3 Servo alarm (C) Seal side high drill feed rate(x7) 1 5
Z-axis overload alarm(x8) 1
Over travel(x9) 1
Seal side trip(x10) 1
TRIP(x11) 1
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4 Chip conveyor (D) Locking of heavy burr(x12) 1 2


Chain loosen(x13) 1 Table I.
5 Clamp not working (E) Worn out bar thread(x14) 1 1 Analysis of machine
6 Abnormal sound (F) Worn-out spindle bearing(x15) 2 2 1 breakdown data

4.6.4.2 Observation. At the work station, P5, before loading the component, extra
cleaning is being done (where it is not necessary) which accounts for the waste “Over
processing”.
Existing cleaning time ⫽ 30 seconds.
Necessary time ⫽ 10 seconds.
Over processing time ⫽ 20 seconds.
4.6.4.3 Solution. Standard Operating Procedure (SOP) needs to be evolved to create
awareness for the operator to reduce the over processing time.

4.7 Refinement of 5S policy at P5 workstation


4.7.1 Problem. At the P5 workstation while removing the component from the fixture,
the chips in front of the component are getting disposed out of the door of the machine.
In the long run, this affects the cleanliness of the working environment and may cause
injury to the operator.
4.7.2 Solution. The present guiding element for removing the component is twice as
long as the component which is not necessary. The guiding element was cut to half of its
length and a downward slope was made at the outer side. This facilitates the chip
disposal in to the area provided in the machine itself.

4.8 Cpk study


The Cpk study was done for six machines in the line to know their Cpk value and to keep
the process in control to reduce the defects and scrap reduction. For each machine, one
critical parameter was chosen for calculating its Cpk value. The observations were taken
for 50 continuous pieces using setup rule and run rule. Using an excel spread sheet, the
Cpk value was estimated and trend chart was also developed.

5. Results and discussions


The results are discussed in the following subsections.
JEDT
13,3

392
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Figure 5.
Fault Tree Diagram
for “Component
comes out from the
spindle”

5.1 Identified areas for improvement


The following are the improvement areas being identified:
• single piece flow can be adopted through the line;
• identifying the root causes for breakdowns so that attending time will be reduced;
• cleanliness in the work environment could be enabled; and
• reduction in the defects in PPM.
9 Development
8
7 of value
6 stream map
5
4
3 Series1
2
1 Series2 393
0 Series3

Figure 6.
Pareto chart for the
break down data
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Activity Tapping tool Recessing tool

Tool fetching time from tool crib 180 seconds


Tool fix 72 seconds 92 seconds
Taking offset 30 seconds 30 seconds
Tool removal 130 seconds 110 seconds
Machining in single block 70 seconds 70 seconds
Machining 254 seconds
After machining checking the gauge 10 10 Table II.
If not OK, offset correction – – Time split up of tool
Checking gauge – – changeover time

5.2 Activity categorization


In an internal manufacturing context, there are three types of operations that are
undertaken:
(1) non-value adding;
(2) necessary but non-value adding (NNVA); and
(3) value-adding.

The activity categorization in the current state is as follows:


• lead time ⫽ 412 minutes ⫽ 24,720 seconds;
• non-value-adding activity ⫽ 24,720 seconds;
• total cycle time ⫽ 1,384 seconds;
• value-adding activity ⫽ 1,384 seconds;
• total time ⫽ 26,104 seconds;
• % of value-added activities ⫽ 1,384/26,104 ⫽ 5.3 per cent; and
• % of non-value-added activities ⫽ 24,720/26,104 ⫽ 94.69 per cent.

The activity categorization in the future state is as follows:


JEDT • lead time ⫽ 242 minutes ⫽ 14,520 seconds;
13,3 • non-value-adding activity ⫽ 14,520 seconds;
• total cycle time ⫽ 1,384 seconds;
• value-adding activity ⫽ 1,384 seconds;
• Total time ⫽ 15,904 seconds;
394 • % of value-added activities ⫽ 1,384/1.5904 ⫽ 8.7 per cent; and
• % of non-value-added activities ⫽ 14,520/15,904 ⫽ 91.29 per cent.

The comparison in the values of value-added activities and non-value-added activities is


tabulated and is shown in Table III.

5.3 Waste quantification and categorization


Wastes occurring due to various issues are observed and their quantification has been
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calculated and are presented in Table IV.

5.4 Comparison of performance measures


After the development of Current State Map and Future State Map, a brain-storming
session was conducted and the following performance measures are estimated as shown
in Table V.

5.5 Cpk study results


The results of the Cpk study conducted for the machines are tabulated and are shown in
Table VI.

5.6 Industrial implications


The implementation of lean manufacturing is very much gaining importance in current
Indian scenario. VSM is one of the important vital techniques of lean manufacturing to
be implemented in the initial stage for ensuring the streamlined process. In this context,
in the present study, VSM was selected as the initiating technique for ensuring lean
practice. A suitable assembly line was selected in an automotive organization.
Currently, VSM was constructed by gathering data from the shop floor. This was
followed by the categorization of activities and wastes. Percentage of value-added
activities in total time is 5.3 and the percentage of non-value-added activities in total
time is 94.7. Then, various constraints observed in current state VSM have been
identified and the suitable proposals to ensure leanness were designed and subjected to
implementation. As a result of implementation, the lead time is found to be reduced from
412 to 242 minutes. The utilization of turning machines increased from 96.3 to 97.8 per
cent, value addition increased from 5.3 to 8.7 per cent and overall equipment
effectiveness increased from 56 to 66 per cent, respectively.
Table III.
Comparison of
activity
categorization in Activity Current state Future state Improvement
Current State Map
and Future State % of Value-added activities 5.3 8.7 3.4% increase
Map % of Non-value-added activities 94.69 91.29 3.4% decrease
Waste type Waste occurring in the assembly line Quantification (minutes) (%)
Development
of value
Waiting Equipment failure 1,630 72.56
Scheduled down time 70
stream map
Management loss 1,240
Line organization loss 135
Job/model change 480
Transportation Logistics loss 30 0.6 395
Unnecessary/excess motion Operation & motion loss 200 4.06
Over production Tool change 815 22.78
Over processing Startup loss
Defects Minor stoppages 175
Inventory and storage Reduced speed loss 140
Quality defect Table IV.
Measure and adjust Waste quantification
Total 4,915 100 and categorization
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Serial no. Performance measure Current state Future state Improvement

1 Lead time 412 minutes 242 minutes 41.26% reduction in lead time
2 Utilization of turning 96.3% 97.8% 1.5% increase in utilization Table V.
machine Comparison of
3 Value addition 5.3% 8.7% 3.4% increase performance
4 Overall equipment 56% 66% 10% increment measures in current
effectiveness state and future state

Machine Operation Parameter Cpk

Machine 1 Outer diameter turning rack side Outer diameter 0.8924


Machine 1 Outer diameter turning seal side Outer diameter 1.2339
Machine 2 Outer diameter turning seal side Outer diameter 0.4825
Machine 2 Outer diameter turning rack side Outer diameter 0.5362
Machine p3 Recessing Recessing diameter 1.4611
Machine p3 Recessing Recessing diameter 1.0641
Machine Outer diameter grinding rack side Outer diameter 2.5606
Machine Outer diameter grinding seal side Outer diameter 1.9892 Table VI.
Machine Outer diameter grinding rack side Outer diameter 1.3302 Results of the Cpk
Machine Outer diameter grinding seal side Outer diameter 1.7673 study

6. Summary and conclusions


The modern manufacturing organizations are facing the onslaught of increasing
competition. This has forced the modern organizations to transform their
manufacturing pattern from mass manufacturing to lean manufacturing. Lean
manufacturing is focused on the waste elimination thereby achieving cost reduction
and reconfiguration of the manufacturing processes. One of the important
techniques of lean manufacturing is VSM which is focused on the micro-analysis of
manufacturing processes. In this context, this case study was carried out for the
JEDT Authors Tools used Result
13,3
Vinodh et al. (2010) VSM Reduction in idle time, total cycle time, WIP and
percentage of defects. Improvement in on-time delivery
Uptime has been realized
Abdulmalek and VSM Reduction in lead time and WIP
396 Rajgopal (2007)
Sullivan et al. (2002) VSM (equipment Estimated 33 per cent reduction in WIP and 45 per cent
replacement) reduction in defects and approximately saving $60, 000
Table VII. per year
Comparison of result Present study VSM Improvement in lead time, utilization of turning machine,
with the other value addition and overall equipment effectiveness. The
studies details have been presented in Table VII
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development of VSM for ABC. The results of the conduct of the case study indicate
that VSM could be practically applied in manufacturing industrial scenario for
quantification of wastes, improvement in manpower productivity, quality
improvement and throughput time reduction to achieve core competency in the
global market scenario. The improvements are subjected to rigorous
implementation. The results of the study were compared with other similar studies
and are shown in Table VII.

References
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Operations & Production Management, Vol. 17 No. 1, pp. 46-64.
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pp. 1063-1075.
of value
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pp. 168-175.
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study of ford motor company and general motors”, Journal of Engineering Technology
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Japanese automotive manufacturing into general manufacturing (UK) through change
agents”, Robotics and Computer–Integrated Manufacturing, Vol. 24 No. 4.
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automotive component supplier”, Computers and Industrial Engineering, Vol. 31
Nos 1/2, pp. 95-98.
Naylor, J.B., Naim, M. and Berry, D. (1999), “Leagility: integrating the lean and agile
manufacturing paradigms in the total supply chain”, International Journal of Production
Economics, Vol. 62 Nos 1/2, pp. 107-118.
Parry, G.C. and Turner, C.E. (2006), “Application of lean visual process management tools”,
Production Planning & Control, Vol. 17 No. 1, pp. 77-86.
JEDT Appendix
13,3 Process P10
Cycle time ⫽ 1 minutes 30 seconds ⫽ 90 seconds
Changeover time ⫽ 15 minutes ⫽ 900 seconds
Availability ⫽ 27,900 seconds
398 Uptime ⫽ (27300 ⫺ 900)/(27,300) ⫽ 96.38 per cent
WIP ⫽ number of units between P9 and P10 ⫽ 2
Days of WIP on hand ⫽ 2/360 days ⫽ 8 minutes
Process P9
Cycle time ⫽ 1 minute 42 seconds ⫽ 102 seconds
Changeover time ⫽ 15 minutes ⫽ 900 seconds
Availability ⫽ 24,900 seconds
Uptime ⫽ (27300 ⫺ 900)/(23,900) ⫽ 96.38 per cent
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WIP ⫽ number of units between P8 and P9 ⫽ 5


Days of WIP on hand ⫽ 5/360 days ⫽ 20 minutes
Process P8
Cycle time ⫽ 5 seconds
Changeover time ⫽ 0
Availability ⫽ 27,300 seconds
Uptime ⫽ 100 per cent
WIP ⫽ number of units between P7 and P8 ⫽ 2
Days of WIP on hand ⫽ 2/360 days ⫽ 8 minutes
Process P7
Cycle time ⫽ 3 minutes 50 seconds ⫽ 230 seconds
Changeover time ⫽ 15 minutes
Availability ⫽ 27,900 seconds
Uptime ⫽ (27,300 ⫺ 900)/(27,300) ⫽ 96.38 per cent
Number of operators ⫽ 1
WIP ⫽ number of units between P6 and P7 ⫽ 2
Days of WIP on hand ⫽ 2/360 days ⫽ 8 minutes
Process P6
Cycle time ⫽ 1 minute 30 seconds ⫽ 90 seconds
Changeover ⫽ 5,400 seconds
Availability ⫽ 24,900 seconds
Uptime ⫽ (27,300 ⫺ 5,400)/(27,300) ⫽ 80.21 per cent
Number of operators ⫽ 1
This operator looks after the operations P6 and P9
WIP ⫽ number of units between P5 and P6 ⫽ 5
Days of WIP on hand ⫽ 5/360 days ⫽ 260 minutes
Process P5
Cycle time ⫽ 1 minute 30 seconds ⫽ 90 seconds
Changeover time ⫽ 1,800 seconds
Availability ⫽ 24,900 seconds Development
Uptime ⫽ (27,300 ⫺ 1,800)/(27,900) ⫽ 93.4 per cent of value
WIP ⫽ number of units between P4 and P5 ⫽ 1
Days of WIP on hand ⫽ 1/360 days ⫽ 4 minutes
stream map
Process P4
Cycle time ⫽ 5 seconds
Changeover time ⫽ 2 sec 399
Availability ⫽ 24,900 seconds
Uptime ⫽ (27,300 ⫺ 360)/(27,3900) ⫽ 98.68 per cent
WIP ⫽ number of units between P3 and P4 ⫽ 2
Days of WIP on hand ⫽ 2/360 days ⫽ 8 minutes
Process P3
Cycle time ⫽ 3 minutes 25 seconds ⫽ 205 seconds
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Changeover time ⫽ 900 seconds


Availability ⫽ 27,300 seconds
Uptime ⫽ (27,300 ⫺ 360)/(27,300) ⫽ 96.7 per cent
Number of operators ⫽ 1
This operator looks after the operations P3, P4 and P5
WIP ⫽ number of units between P2 and P3 ⫽ 8
Days of WIP on hand ⫽ 8/360 ⫽ 32 minutes
Process P2
Cycle time ⫽ 4 minutes 43 seconds ⫽ 283 seconds
Changeover time ⫽ 900 seconds
Availability ⫽ 24,900 seconds
Uptime ⫽ (27,300 ⫺ 900)/(27,300) ⫽ 96.38 per cent
Number of operators ⫽ 1
This operator looks after the operations P2 and P1
WIP ⫽ number of units between P1 and P2 ⫽ 0
Days of WIP on hand ⫽ 0
Process P1
Cycle time ⫽ 4 minutes 41 seconds ⫽ 281 seconds
Changeover time ⫽ 900 seconds
Availability ⫽ 27,300 seconds
Uptime ⫽ (27,300 ⫺ 900)/(27,300) ⫽ 96.3 per cent
WIP ⫽ number of units prior to P1 ⫽ 75
Days of WIP on hand ⫽ 75/360 days ⫽ 300 minutes

Corresponding author
S. Vinodh can be contacted at: [email protected]

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