CHAPTER NO 1

INTRODUCTION

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 Introduction
Background of study

The company's condition is largely dependent on its capacity to react quickly to changing customer needs.
Producing goods precisely on time, in the specified quantity and quality, and for the lowest possible price
has become the standard. Of course, the corporation must make some sort of profit from all of these
activities.

Companies throughout the world attempt to improve their efficiency as the manufacturing industry becomes
an increasingly competitive market. the cost of labour is rising A few factors that influence business
decisions to relocate or outsource operations include the presence of numerous industrialized nations and the
need to lower and better manage operational costs.

Enterprises must pay close attention to lowering production costs if they want to accomplish their goals and,
more importantly, gain a competitive edge in the marketplace. A value stream is created when the value of
manufactured goods emerges during the execution of following actions. It is crucial that the customer base
accords the individual a value that includes the product's price. Therefore, the need of improving production
procedures is developing. To improve, production losses must be found and eliminated.

Typically, most businesses outsource to nations with cheaper production costs and lower pay levels.
Companies employ a range of techniques to lower costs and maintain their competitiveness with producers
abroad. Lean manufacturing is one of the key techniques. Reducing waste in an operation, such as lengthy
lead times, faults, and material waste, is the core tenet of lean manufacturing. A value stream map (VSM) is
created in order to visually illustrate where waste occurs throughout the process. In addition to developing
ideal, future state processes, VSMs are frequently used to evaluate present manufacturing processes.

Companies must adjust to the expanding and changing business strategies as the manufacturing industry
grows and spreads more extensively around the globe.

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Lean manufacturing theory
Henry Ford began to "marry regularly interchangeable partners" in the early 1900s. movable pieces with
uniform labour in order to produce what he called flow Not long after World War I, the Toyota Production
System, or TPS, introduced lean manufacturing. (A Brief History of Lean The incorporation of
manufacturing concepts into the industrial industry 2007). Leading manufacturers are using lean
manufacturing more and more. companies across the globe. It has demonstrated a number of advantageous
effects. They encompass ideas like lower cycle time, decreased cost, and decreased waste and defects. Lean
manufacturing seeks to increase output while using less resources. less time, less space, less effort from
humans, fewer machinery, and less material and reduced cost.

One must first comprehend the fundamental concepts that support lean manufacturing in order to understand
it more fully. Recognizing wastes, having standard procedures, having a continuous flow, pull-production,
preserving quality at the source, and continuing continuous improvement are some of the key lean
manufacturing principles.

The TPS states that there are seven original wastes that go by the name "Muda," which is Japanese for
"trash." These wastes must be located and eliminated in order to develop a lean workplace. Overproduction,
or producing more than is required or required by the customer, is the first Muda. Muda means the presence
of defects. Product flaws increase prices, waste manufacturing time, and require additional work to inspect
for and correct. Inventories make up the third waste. Inventory may result in increased defect rates and
higher storage costs. Large inventories cost a corporation money because they raise operating costs, even if
there is no "inventory fee." The fourth Muda is transportation, which could involve moving products
between factories. Companies work to reduce transportation distances since, when considered strictly,
transportation is a non-value-added activity.

The fifth Muda, waiting, is crucial to lean manufacturing because it is one of the key wastes that production
organizations want to reduce. Waiting is a waste of time and money. Over processing is the sixth waste.
Unintentionally performing more processing work than the client requires can result in overprocessing,
which can increase expenses by consuming more resources than necessary. Motion that is unneeded is the
last waste. When workers have to walk between tasks or around the manufacturing floor, it slows down the
pace of production overall (Mekong, 2004). A lean workplace will be created within a corporation by
identifying and eliminating these wastes during the production process.

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Lean manufacturing: What is it?

A production method known as "lean manufacturing" is based on the idea of increasing productivity while
reducing waste in a manufacturing operation. Anything that doesn't add value that customers are willing to
pay for is considered waste according to the lean philosophy. Lean manufacturing has advantages like
shorter lead times, lower operating costs, and better product quality. The methodology, also referred to as
lean production, is founded on particular manufacturing principles that have influenced production systems
in other industries, such as healthcare, software, and various service sectors, as well as those throughout the
world.

The Operation of Lean Manufacturing

To continuously improve a process, eliminating waste is the core principle of lean manufacturing. Lean
manufacturing sustainably provides value to the client by reducing waste to deliver process improvements.
The processes, activities, goods, or services that demand resources such as time, money, or expertise but do
not add value for the clientele are examples of waste. These may include excess inventories, underutilized
personnel, or wasteful or inefficient processes and procedures. Eliminating these inefficiencies should
improve services, lower expenses, and ultimately give customers savings for a particular good or service
throughout the supply chain.

How Can Lean Manufacturing Help and Why Is It Important?

Image No 01: Lean manufacturing

Lean manufacturing seeks to eliminate waste in the manufacturing sector, including underutilized labour,
inefficient processes, and unused materials, all of which reduce productivity. Depending on who you ask,
there are many different reasons for doing this,

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including boosting profits and giving customers advantages. Regardless of the overarching goals, lean
manufacturing has four major advantages:

 Reduce Waste: Wastage has an adverse effect on costs, deadlines, and resources. It adds nothing to
the value of goods or services.
 Enhance Quality: Enhancing quality enables businesses to remain competitive and satisfy
customers' shifting needs and desires. You can stay ahead of the competition and keep quality
improvement at the forefront by designing processes that satisfy these demands and expectations.
 Cost-saving Measures: By improving processes and material management, it is possible to
decrease storage costs that result from excess production or material availability.
 Increasing Efficiency: Employing more effective procedures reduces lead times, enables faster
delivery of goods and services, and saves time and money.

Lean manufacturing: Who or When Did It First Exist?

The fundamental principles of lean manufacturing may have existed for centuries, but they were established
by Benjamin Franklin's writings on waste reduction in his "Poor Richard's Almanack," where he stated that
cutting expenses may result in greater profits than growing sales.

This and other ideas were presented by Franklin in his essay "The Way to Wealth," which mechanical
engineer Frederick Winslow Taylor developed in his 1911 book "Principles of Scientific Management."
When a worker suggested an improvement, Taylor codified the procedure, referring to it as scientific
management and writing, "it should be the policy of the management to make a careful analysis of the new
method, and if necessary, conduct a series of experiments to accurately determine the relative merit of the
new suggestion and of the old standard. Additionally, once a new approach is shown to be noticeably better
than an existing one, the entire organisation should embrace it as the norm.

Lean manufacturing was viewed at the time by American manufacturers, especially Henry Ford, as a
strategy to fend off the influx of inexpensive overseas labour. Henry Towne, President of the American
Society of Engineers, stated in the introduction to Frederick Winslow Taylor's 1911 book "Shop
Management," "We are justifiably proud of the high wage rates that are the norm throughout our nation and
envious of any attempts by foreign products using less expensive labour to interfere with them. Every
influence that tends to make our production processes more efficient should be welcomed and supported in
order to maintain this condition, strengthen our control over domestic markets, and, most importantly,
increase our opportunities in foreign markets where we must compete with the products of other industrial
nations."

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But it was Toyota Motor Corporation's Shigeo Shingo and Taiichi Ohno who actually developed these ideas
into what is now known as lean manufacturing. After reading Frederick Taylor's 'Principles of Scientific
Management' in 1931, Shingo stated that he was "greatly inspired to make the study and practice of scientific
management his life's work."

Toyota, which was formerly a textile business, switched to making cars in 1934 and was awarded a truck
contract by the Japanese government in 1936. However, as Kiichiro Toyoda, the company's creator, oversaw
the engine casting project, he identified issues with its production, such as the needless expenditure of
resources on the replacement of subpar castings. Toyoda studied every step of the production process, then
formed "Kaizen" improvement teams to deal with the issues. Taiichi Ohno combined the results of the
Kaizen teams to establish the Toyota Production System (TPS). Since there was little demand in the
Japanese economy during the late 1940s, Ohno came to the conclusion that work schedules should be set by
real sales rather than sales or output targets. Toyota decided to implement "pull" (or build-to-order)
production scheduling rather than target-driven "push" production scheduling in order to minimize expensive
overproduction.

Just-in-time production, often referred to as TPS, evolved into lean manufacturing in the latter 1980s and
early 1990s. After working on a Toyota-General Motors joint venture in California, quality engineer John
Krafcik first used the term "lean manufacturing" in his 1988 article, "Triumph of the Lean Production
System." According to Krafcik, lean manufacturing facilities outperform non-Lean facilities in terms of
productivity and quality, and "the level of plant technology seems to have little effect on operating
performance." He proceeded by saying that establishing a well-trained, adaptable staff, user-friendly, high-
quality product designs, and a supportive, high-performing supplier network can all help to reduce the risks
associated with implementing lean processes.

James Womack, Daniel T. Jones, and Daniel Roos expanded on the definition of lean manufacturing in their
1990 book, "The Machine that Changed the World." In their book "Lean Thinking: Banish Waste and Create
Wealth in Your Corporation," published in 1996, Womack and Jones provided a more detailed explanation
of this. They outlined five key principles, including "Precisely specify value by specific product, identify the
value stream for each product, make value flow without interruptions, let customer pull value from the
producer, and pursue perfection."

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What Does Lean Manufacturing Mean?

By reducing processes and procedures, lean manufacturing increases production by removing of waste. Lean
is "a method to achieve more and more with less and less - less human labour, less equipment, less time, and
less space - while moving closer and closer to supplying customers with exactly what they want," according
to Womack and Jones

Which 5 Principles are there?

Value, the value stream, flow, pull, and perfection are listed as the five guiding concepts of lean
manufacturing. These are now the foundation for implementing lean.

Image No 02: Lean Principles

1. Value: From the viewpoint of the customer, value is determined by how much they are willing to
pay for goods or services. In order to reach the ideal pricing for the client while still maximizing
profits, the manufacturer or service provider should work to reduce waste and costs.
2. Map the Value Stream: In order to identify waste and make improvements, this approach entails
examining the materials and other resources needed to generate a good or service. A product's
complete lifecycle, from raw materials to disposal, is covered by the value stream. Waste must be
identified at every level of the production cycle, and everything that doesn't contribute value should
be eliminated. To complete this phase, chain alignment is frequently advised. The actual
manufacture of a physical product is only one component of a larger stream of work in today's often-

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 complex manufacturing streams that involve the collaboration of engineers, scientists, designers, and
others.
3. Create Flow: To improve lead times, functional obstacles must be removed in order to create flow.
This guarantees that procedures go as planned and may be completed with little delay or unnecessary
waste. Creating flow requires providing a continuous stream for the production or distribution of
services since interrupted and disruptive industrial processes are expensive.
4. Implement a pull system: A pull system only starts working when there is demand for it. Push
systems, which are employed by manufacturing resource planning (MRP) systems, are the antithesis
of this. Push systems establish production to fulfil these sales or production estimates while
determining inventories in advance. However, this can lead to either too much or not enough of a
product being produced to meet demand because many projections are inaccurate. This may result in
higher warehousing expenses, messed up schedules, or dissatisfied clients. A pull system only
responds to demand and is successful when there is flexibility, communication, and effective
procedures in place. Teams can use the "pull" method, where they only move on to new tasks once
the previous ones have been finished. This method enables teams to adjust to challenges as they arise
since they know that the work, they have already done is largely still valid to providing the product
or service.
5. Pursuit of perfection: Kiichiro Toyoda, the founder of Toyota Motor Corporation, coined the term
"Kaizen" to describe the pursuit of perfection through ongoing process improvements (see "When
and Who Invented Lean Manufacturing?" above). Lean manufacturing calls for continuous
evaluation and enhancement of processes and procedures in an effort to establish the ideal solution
for the value stream. The idea of continuous improvement needs to be ingrained in an organization's
culture and measured using metrics like lead times, production cycles, throughput, and cumulative
flow in order to have a significant and long-lasting impact. The culture of continuous improvement
must permeate an organization at all levels, from team members and project managers all the way up
to the executive level, in order to establish a sense of common accountability for value creation and
improvement.

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7 Lean Manufacturing Wastes
Eliminating waste from work processes is the goal of lean thinking. It is crucial to comprehend what
waste is before delving into the eight types of garbage. Waste is any action or process step that does not
provide the customer with additional value. In other words, a process that the client does not choose to
pay for is waste.

Image No 03: TIM-WOOD

Taiichi Ohno, Toyota's Chief Engineer, created the initial seven wastes (Muda) as part of the Toyota
Production System (TPS). Transportation, inventory, motion, waiting, overproduction, overprocessing,
and defects are the seven wastes. The abbreviation "TIMWOOD" is frequently used to refer to them.
Later, in the 1990s, when the Toyota Production System was implemented in the West, the eighth waste
of underutilized talent or "Skills" of workers was added. As a result, the eight wastes are sometimes
referred to as "TIMWOODS."

1. Transport

Transportation waste comprises the unnecessary movement of people, tools, inventories, equipment, or
goods. Defects and product damage can result from excessive material movement. Furthermore, moving
people and equipment around a lot might result in extra effort, increased wear and tear, and tiredness.

2. Inventory

It might be challenging to consider extra inventory as wasteful. Inventory is viewed as an asset in

accounting, and suppliers frequently provide discounts for large orders. However, maintaining more
inventory than necessary to support a regular flow of work can result in issues such as product flaws or
damaged materials, longer production lead times, an inefficient use of capital, and difficulties that are hidden
in the inventory. Overbuying, overproducing work in progress (WIP), or producing more items than the
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market requires can all result in excess inventory. The inability to detect production-related issues due to
excess inventory allows for errors to build up before being found. Therefore, additional effort will be
required to fix the problems.

3. Motion

Any wasteful motion of people, objects, or machines is considered waste in motion. Walking, lifting,
bending, stretching, and moving are all included in this. The redesign of motion-intensive tasks will improve
worker productivity and raise health and safety standards.

4. Waiting

People who are waiting for supplies or equipment, as well as idle machinery, are examples of waiting waste.
Inconsistencies in the production stations frequently contribute to waiting times and might lead to excess
inventory and overproduction.

5. Overproduction

When a product or component of a product is produced earlier than needed or expected, this is known as
overproduction. When there is downtime for workers or equipment, it could be tempting to create as many
items as possible. The "Just In Case" method of working, however, causes a variety of issues, such as
impeding a smooth flow of work, higher storage costs, hiding defects inside the WIP, necessitating more
capital expenditure to fund the production process, and excessive lead-time, as opposed to producing
products just when they are needed under the "Just In Time" philosophy. Additionally, when a product is
produced in excess, there is a greater chance that the product or numbers produced exceed the needs of the
consumer.

6. Over-processing

A product or service that has been over-processed includes work that has been done beyond what the
customer has requested, as well as additional components and procedures. In the manufacturing industry,
examples of this include using more precise equipment than is necessary, using components with greater
capacities than necessary, performing more analyses than necessary, over-engineering a solution, adjusting a
component after it has already been installed, and including more functionalities in a product than is
necessary.

7. Defects

When a product is unfit for usage, defects occur. This usually leads to the product being either reworked or
scrapped. Both outcomes are unproductive because they increase operating costs without providing any
benefit to the client.

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8. Skills - The 8th Waste

Although the eighth waste, the waste of human potential, was not a component of the Toyota Production
System (TPS), it is still widely known. Waste of untapped human talent and inventiveness is another name
for the eighth waste. Organizations that isolate the management from the employee roles experience this
waste. Planning, organizing, controlling, and innovation of the manufacturing process are duties assigned to
management in some businesses. Employees' only responsibility is to accomplish the work as directed and to
follow directions. Process improvement is challenging if the knowledge and experience of frontline workers
are not utilized. The reason for this is that those who are performing the work are best suited to recognize
issues and create solutions.

Generally, there are three distinct categories for these wastes:

Image No 04: Muda,Mura,Muri

 Muda: This is process-related waste and unproductive effort. It is pointless and ought to be stopped
if an activity doesn’t contribute to or directly support one that does.
 Mura: Unevenness or waste brought on by varying demand, whether it comes from client requests or
new services (and therefore, more work) being introduced by an organization.
 Muri: Overwork or waste brought on by attempting to achieve too much. People are being
overworked in this case, which has to do with resource allocation. Switching between jobs or simply
becoming demotivated from being overworked can waste time.

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Advantages and Disadvantages of Lean Manufacturing

Advantages

 Increased product quality: Product quality is improved because of the time saved by increased
efficiency, which can be used for innovation and quality assurance.
 Improved lead times: Reduced delays and better lead times are the consequence of streamlining
manufacturing procedures, which enables companies to react more quickly to changes in demand and
other market factors.
 Sustainability: A business that is more adaptable and produces less waste is better positioned to
succeed well into the future.
 Employee satisfaction: When a worker’s daily schedule is overburdened or filled with unneeded
tasks, it lowers morale. Employee satisfaction is increased through lean manufacturing in addition to
productivity.
 Profit growth: It goes without saying that a firm will be more lucrative if it can increase productivity
while reducing waste and improving quality.

Disadvantages

 The Inventory Issue: Low stock levels are typically kept on hand in lean management
implementations to reduce carrying expenses. As a result, businesses must rely on their suppliers and
trust that they can adapt to supply items promptly and effectively. If inventory operations are
disrupted in any way, the business may fail.
 Difficult to Change Over: Change is challenging since staff members aren’t always responsive to
lean management techniques. It will take a lot of patience and a thorough reorganization of work
processes to execute this style. Longer-tenured employees might not feel comfortable with this.
Leaders must therefore be open and honest about all upcoming changes in the organization. It’s also
necessary to give time for queries from staff members who aren’t yet on board with the changeover.
 High Implementation Cost: When lean management is introduced to a business that has never
utilized it before, it is usually necessary to keep all systems and production processes running as-is.
Companies that are unprepared for the additional costs of bringing in new equipment and training
programs may incur large costs as a result of this event.
 The Attempted Over-Structuring — It may not be necessary to overhaul everything. Determining
what should be included in lean management and what shouldn’t is a difficulty for leaders.
Understanding the effects of incremental adjustments is crucial in this situation because leaders
might push systems beyond what they may be able to provide.
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Tools for Lean Manufacturing
These lean tools can be used individually or collectively. However, as additional approaches are applied, the
advantages will significantly grow because they complement and strengthen one another. Scientifically-
organized problem-solving techniques are called lean tools. Below is an explanation of some major lean
tools:

1. 5S

Image No 05: 5S

Toyota developed the 5S, a Japanese lean tool, as part of their lean manufacturing production method. The
5S method is a strategy for organizing and maintaining a structured, orderly, and effective workplace. It
contributes to the improvement of working conditions and waste management while increasing effectiveness
& quality. This tool becomes the foundation for all other Lean Manufacturing tools to be used in a company
that implements 5S. The term 5S stands for five straightforward procedures that start with the letter “S” and
are Sort, Set in Order, Shine, Standardize, and Sustain. In Japanese, these are referred to as:
seiri,“s”itan,erious, seiketsu, and shitsuke.

Sort: The 5S process begins with sorting. It refers to the method of organizing all the chaos and clutter in the
workplace while keeping only what is necessary.

Setting Things in Order: After getting rid of the extra clutter, you can reorganise the vital items so that
anyone can find & access them with ease. It specifies the location and arrangement of the materials needed
to complete the task. This step ensures that every object has its immediate environment during the lean
transformation and that those things return to that environment.

Shine: Another lean manufacturing strategy under 5S, Shine also attempts to create a clean workplace free
of trash, dirt, and dust. It involves thoroughly cleaning the workspace, all the systems, the lean tools to be

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utilised, and the machines and equipment to be employed in the company’s manufacturing unit. This will
make it possible to quickly identify irregularities, such as repeated contamination, before the issue worsens.
Shining additionally helps in creating a sense of ownership over the workspace, making it safer & more
enjoyable to work in.

Standardize: This step ensures that the work that was completed in the previous three steps has been
properly standardised. It entails consistently carrying out the proper actions. Make one-time actions into
routines. Set aside time to assist in creating a culture where duties become usual, whether it be through the
use of an online schedule or verbal reminders.

Sustain: After the first four phases have been completed, you must concentrate on maintaining the results.
Cleaning up and auditing the procedures, tools, and equipment are part of this stage. During this phase, the
daily routine at work develops into a culture. It is by far the most challenging component of the lean
transformation to implement.

2. Poka-yoke

Image No 06: Poka-Yoke

Poka-Yoke is designed to stop errors from becoming defects. This lean technique uses preventive in-built
responsiveness in the design of the product or manufacturing process to stop an operator from making a
mistake. The purpose of this lean tool is to develop a system of quality control that detects errors
automatically and eventually eliminates the need for humans. It can be used in the majority of operations,
but there are some instances where it may be crucial, such as when a client makes a mistake, when a little
mistake becomes a big mistake, or whenever there is a chance that an error will cause significant disruption.

Advantages of error-proofing:

 Make sure the right conditions are in place before the creation happens and stop errors from
happening.
 encourages improvement of processes and accountability.
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  determines and removes disruption-causing factors.
 less time-consuming and requires relatively little effort.

Poka-yoke Example: You may have observed that your washing machine automatically turns off when you
open the lid. This will shield you from any problems with the moving parts or water spills. An illustration of
error-proofing is this.

3. Andon

Image No 07: Andon

Andon is a visual feedback system for the shop floor that recommends manufacturing status, alerts when aid
is needed, and gives operators the power to halt the production process if any product defects are discovered.
It is one of the lean manufacturing tools.

Benefits of Andon:

 Ando uses a combination of light and sound as a shop floor communication tool that alerts workers to
issues as they arise and provides production status updates.

4. Kaizen

Kaizen, which meaning "continuous improvement" in Japanese, refers to the transformation of quality. Kai
and zen, the two words that make up the phrase "kaizen," both refer to improvement or transformation.

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 Image No 08: Kaizen

a strategy in which workers cooperate and take initiative to improve the production process on a regular
basis. Kaizen involves the participation of every employee, from high management to assembly-line
workers, and it may be used to improve each step of the supply chain, from purchasing to logistics.

Benefits of Kaizen:

 Eliminate waste to improve procedures.

 enhances customer happiness while improving safety, delivery, cost structures, and quality.
 encourages both personal and professional growth among staff.

5. Kanban Pull System

Image No 09: Kanban

When a part was running low, industrial employees would fill up a signal card, which is what the Japanese
phrase for "sign board" or "billboard" kanban means. A team whose task it was to place an order for more of
that component would get the signal card. When a product or piece of information is needed, a customer

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process notifies a supplier process via a Kanban pull system. JIT (Just in Time) efficiency, when the product
meets rather than surpasses consumer demand, is referred to in the lean method of the pull system.

Kanban is a tool used to reduce waste during the lean transformation process. You are less likely to waste
time, money, or space buying unnecessary components if you simply purchase parts as needed. Because the
strategy is carried out based on consumer demand, this lean tool produces more efficient operations. Only
when a product is in high demand should you place more orders. If there isn't enough demand, businesses
can avoid placing excessive orders.

Benefits of Kanban:

 increased effectiveness of production.

 improved industrial environment

6. Value Stream Mapping

Image No 10: VSM

Value stream mapping, often known as VSM, is a lean manufacturing approach used to evaluate, plan, and
control the flow of materials and information necessary to deliver a product to a customer. It employs a set
of common symbols to represent different work streams and information flows and is also known as
"material and information-flow mapping." To identify products that don't add value, objects are mapped as
either adding or not providing value from the customer's perspective.

Benefits of Value Stream Mapping:

 You may identify wasteful activities with the help of VSM.

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  VSM offers a clear picture of the work process, showing where value-adding and non-value-adding
stages are formed. Visualizing how long it takes for work items to pass through them is another smart
approach.
 The existing workflow is highlighted by VSM, and attention is drawn to potential future
improvements.

7. Gemba Walk

Image No 11: Gemba

Gemba is Japanese for “the true place.” It denotes a real location where the issue or occurrence is
discovered. Shop floor is referred to in manufacturing. Additionally, it could be a sales floor, a construction
site, etc. The concept behind the lean manufacturing tool Gemba is that management must visit the work
floor to look for and address real problems. Gemba maintains that manufacturing issues cannot be resolved
in an office setting. Therefore, the team of issue solvers must be present at the Gemba.

Benefits of Gemba:

 Gemba Walks refer to employees taking the time to stroll through the factory and observe what is
happening in order to learn about plant productivity for organisational change.
 Gemba offers an important, in-depth, and efficient understanding of the production process and
conversations with shop floor workers

8. Quick Changeover/SMED

The Japanese word for "levelling" is heijunka. It is used to level production in both type and quantity while

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The Single Minute Exchange of Dies, or SMED, is a procedure for shortening changeover times by
classifying machine components as internal or external, then altering the internal components such that they
can be changed externally while the machine is still in use.

Image No 12: SMED

Using an automotive race as an example, a pit crew represents quick changeover. A racer's chances of
winning increase with the speed at which a crew can swap over. A sluggish transition will frequently result
in a loss of the race.

Benefits of SMED:

 Reduce the quantity of flaws.

 Cut back on inventory expenditures.
 greater likelihood of delivery on time.

9. Heijunka (Level Scheduling)

Image No 13: Heijunka

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reducing batching in the lean manufacturing process. Toyota made use of Heijunka to reduce batching and
improve the manufacturing process. Small-batch manufacturing with predictable and consistent flow is
supported rather than more complex production methods.

For illustration, suppose a company that manufactures mobile devices receives 1000 orders every week.
Monday: 100; Tuesday: 300; Wednesday: 400; and Thursday: 200. The corporation would create 200
mobiles each day rather than the initial weak or exact number necessary, which was 1000 mobiles. By doing
this, the business can improve its manufacturing process, making it more effective.

Benefits of Heijunka:

 This particular lean manufacturing technique is to drastically cut down on capital expenses,
inventories, labour costs, and production times

10. Jidoka

Image No 14: Jidoka

In 1896, the jidoka was created. It stands for Autonomy. In essence, it is automation with a human touch.
Jidoka prioritises industrial processes above limited managerial tasks. When a defect is found, the machine
under this idea automatically stops.

Benefits of Jidoka:

 enhances productivity
 minimises downtime
 enables staff members to successfully transform human resources.

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 11. Cellular manufacturing

Image No 15: Cellular manufacturing

Grouped components and manufacturing cells are its two defining qualities. Producing related items in a
single cell is a process known as cellular manufacturing. In cellular manufacturing, the product undergoes
the lean manufacturing process in a single unit without any interruptions. The same assembly line can create
similar goods in cellular manufacturing.

As an illustration, a metallic casing comes in a manufacturing and needs to be put together. Several unique
actions must be taken during assembly. Cellular manufacturing aims to have every process take place in a
single cell, in one location. This reduces the amount of time that parts need to travel during the lean
manufacturing process.

Benefits of Manufacturing Cellular:

 To reduce changeover time, group related products together.

 During the entire manufacturing, utilise space effectively.

12. Overall Equipment Effectiveness (OEE)

OEE is a tool used to measure the effectiveness of lean manufacturing. The amount of time a manufacturer is
actually productive is measured. A 100% would therefore indicate that a manufacturer is entirely productive.
OEE monitors availability, quality, and performance.

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 Image No 16: OEE

OEE aims to give producers a clearer picture of how to use lean manufacturing tools to improve overall
manufacturing performance by assessing productivity in terms of time. The method aids in locating waste,
monitoring development, and increasing the effectiveness of production machinery.Benefits of OEE:

 OEE stands for availability*performance*quality.

 The quantity of flaws in a lean manufacturing process is a metric of quality. A score of 100% means
that there are no errors.
 Performance metrics include stop and slow cycles. A score of 100% means that everything is
operating as quickly as it can.
 Any stops are considered in availability. A score of 100 percent means that the process is always
active during the scheduled production times.

13. One-piece flow

Image No 17: One piece flow

The flow of a product or service through a process one unit at a time is known as one-piece flow. The
inverse of batch production, known as one-piece flow, involves producing a large number of items all at

22
once and sending them through the lean manufacturing process in a batch or group. One-Piece Flow places
more emphasis on product manufacturing than on product waiting, shipping, and storage.

Benefits of one-piece flow:

 Ability to more accurately and early discover flaws.

 More customisation and customer demand fulfilment options.
 To increase the efficiency of each step, less work will be in progress.
 Eliminates waste, which lowers costs

14. 5 Whys

The five whys are a tried-and-true approach to understanding and resolving a problem. Using the 5 Whys
method, a problem can be identified for what its root cause is. Sakich was the one who created the five
whys method.

Image No 18: 5 Whys

Asking oneself why is crucial because it is the quickest method to solve a problem by cutting through the
symptoms and addressing the core causes. Repeating the five-why test while providing alternate answers or
having a worker perform the test for comparison is always a fantastic idea. For this reason, you can ask more
than 5 whys; the important thing is to finish the exercise when no more helpful explanations are provided or
the answers become unusable.

Using the 5 Whys as an example:

Problem: We exceeded the customer delivery deadline.

23
  Why was the deadline not met? because we delivered the item a day late.
 Why was the shipment of the merchandise delayed? The new batch of orders was still not updated in
our customer management system.
 Why was the database not updated? Considering that it was in use.
 Why caused the update to be delayed? Turnaround times have increased since the IT department has
vacant personnel.
 Why are there vacant IT jobs? The IT team is split off into different vacations on the same time.

15. Total Quality Management (TQM)

Image No 19: TQM

Total Quality Management (TQM is a lean tool and organizational initiative to raise the quality of
manufactured goods. It takes a customer-focused strategy. TQM is concerned with participative management
and focuses on enhancing the organization's product, service, or process. The goal is to improve the standard
of each and every step taken in an organizational workflow.

Total Quality Management is based on the following guiding principles:

 Customer-centered: The aim of total quality management is to enhance the service provided to
consumers and maintain their satisfaction.
 The strategy for using this lean manufacturing technology must follow a predetermined
methodology.
 Continuous Improvement: Maintaining quality requires time and yearly evaluation and improvement.

24
Benefits of TQM:

 TQM raises quality awareness throughout the organization.

 Its requisite information.
 Increases the organization's commitment to ongoing improvement.

25
History of value stream mapping

Lean's emergence in the second half of the 20th century led to the widespread adoption of value stream
mapping as a technique. Despite the fact that at the time the word VSM was not in use, it was one of the
pillars that helped the Toyota Production System become a manufacturing phenomenon. Value Stream
Mapping for Toyota It's a popular myth, nevertheless, that Toyota came up with the idea of visually mapping
a workflow. A 1918 book by Charles E. Knoeppel titled Installing Efficiency Methods has records of
schematics illustrating the movement of information and supplies.

Image No 20: History of VSM

Value stream mapping was a common practice among western managers by the 1990s. Its popularity began
to outpace manufacturing and eventually grew to include knowledge-based businesses like marketing, IT
management, software development, and many more.

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Value Stream Mapping

Value Stream Mapping It is also referred to as VSM. It is a particular kind of process map that enables
organizations to gain a high-level understanding of the entire workflow from customer demand to fulfilment
across all of their organizations.

Despite being widely used outside of Toyota, it is not frequently used there. It was created to be used with
suppliers and for outside consulting projects. Rather than being known as VSM, it was first known as the
Material and Information Flow Diagram (MIFD) or Material and Information Flow Analysis.

The goal is to align everyone in the company with the customer experience so they can recognize ways to
streamline the process or raise the process's quality. It draws attention to departmental sub optimization that
delays fulfilling customer requests. Teams frequently only have access to information about their own
departments' performance, and they frequently have no idea how their performance fits into the larger value
stream that is the customer experience.

You can construct a thorough picture of each step in your work process using the value stream mapping
method. It depicts the movement of goods throughout your business from the supplier to the buyer. A value
stream map shows all the critical phases in your work process that must be completed from beginning to end
in order to deliver value. It gives you a quick status report on the status of each assignment and enables you
to visualise every task that your team completes.

It is crucial to make it clear that value in lean is whatever the consumer would be willing to pay for. When
mapping a value stream, certain phases might not directly benefit your client but nonetheless help to
guarantee that you will deliver the end good or service. It's crucial to keep in mind that users, whether
internal (workers) or external (customers), only care about the value of the product or service they're
receiving, not how challenging the production process was or how much value it could provide to other
users. This is considered while creating value stream maps. It enables project managers to see, assess, plan,
and enhance the workflow process used in creating a product from beginning to end.

Lean product management uses the technology of value stream mapping. It examines the production process
to identify high-value processes and inefficient regions. It is also future-focused since the method may be
used to create a production model that takes into account both present performance and desired future
outcomes. A value stream map is a graphic depiction of a company's production process that identifies all the
crucial steps and activities that go into adding value. Even for the same final product, it may differ from
business to firm. It measures output in terms of volume and inputs like time.
27
Value stream maps are sometimes compared to flowcharts because they show how information and materials
move through a work process using drawings, diagrams, and other symbols. A value stream map will show
the arrival of raw materials, washing and preparation, the extraction process, purification, branding, and
packing, as well as possible distribution to warehouses or direct customers in a realistic environment like an
oil processing facility. via use of value stream. A production manager may locate areas of backlog,
stagnation, and waste using value stream mapping, which increases process efficiency overall.

The concept of value stream mapping is not brand-new. After World War II, Toyota became aware of its
application for the first time. A material and information flow diagram was the term used at that time. Later,
it was included into the lean manufacturing philosophy, which swept throughout the US in the 1990s.

There are 2 types of value stream maps.

 Current
 Future

A current state map outlines the key steps taken to produce a good or provide a service, from taking a
customer's order or request to returning it to them. It depicts what is occurring right now, not what ought to
or might occur. Before attempting to create maps of an ideal or future state, it is important to truly
understand the current situation.

If there were no obstacles or impediments to the process, the ideal state map depicts the ideal world (the
perfect process). Explore the criteria for the Ideal State.

The high-level steps to develop the product or service are described in a future state map. The map should
depict the next six to twelve months.as you work to achieve the ideal state.

The current state should be created first, followed by the ideal state and finally the future state. If ideal state
is skipped, the team frequently chooses a less aggressive or transformational future state. Future state value
stream maps offer a forecast for where the good or service will go in the future, which directs all investment
and choice-making.

A VSM is divided into 4 main parts:

 Information Flow
 Material Flow
 Data Boxes
 Timeline

28
These provide information on how the process is currently functioning and the locations of the issues The
cross-functional team then develops action items to implement the future state, which mainly consists of a
series of quick kaizen events.

The future state map serves as a road map for the organization to help identify which areas (related to system
bottlenecks) need improvement the most and which areas are not currently worth the investment in
improvement. By eliminating waste, for instance, you can speed up a non-bottleneck process without
increasing the workload on the bottleneck process, which will only magnify your issue.

The TPS is the source of value stream mapping, also referred to as "material and information flow mapping,"
a lean manufacturing methodology. This mapping tool analyses and assesses specific work processes in a
manufacturing operation using the principles of lean manufacturing. This technology is primarily used to
recognize, quantify, and reduce waste and to improve flow in the production process. VSMs can be made
with just paper and a pencil, but more sophisticated maps require Smart draw as well as Microsoft Excel.

Advantages and disadvantages of value stream mapping

Advantages

 Early adopters may enjoy a competitive edge because value stream mapping is still a relatively new
concept in business.
 It's also an effective technique for locating process waste. Although wastage frequently refers to
manufacturing, it is more broadly used in VSM to describe any process that does not increase the
value for the consumer.
 The company may align with its fundamental principles and brand identity by concentrating on
offering value to the customer.
 The company may align with its fundamental principles and brand identity by concentrating on
offering value to the customer.
 Consumers will, of course, pay for value, thus firms should, whenever possible, take use of VSM's
incremental improvement capacity.

Disadvantages

 Making a VSM framework involves some learning curves. It frequently necessitates an initial
commitment of a significant amount of time and money, and if done incorrectly, can become a cause
of waste in and of itself.

29
 Image No 21: Sample Value Stream Map

There are 5 basic steps involved in creating a VSM:

1) State what it is.

2) Produce an up-to-date VSM.
3) Assess the present map and identify any problems.
4) Produce a VSM for a future state.
5) Put the final strategy into action.

Image No 22: VSM steps

Selecting the precise product, the VSM will

concentrate on is the first step in the
identification process, or identifying the
product. A first VSM of the current process
is built after the product is selected. The
team assesses the procedure and the stages
involved after finishing the current map.
After putting all of this data upon a map,
analysis is done. Every stage of the process is
included on a standard VSM.

Cycle time, TAKT time, work in progress (WIP), set up time, down time, worker count, and scrap rate could
all be parameters for each stage. A VSM identifies the points in the manufacturing process where value is
30
added. Additionally, it will display any additional processes that do not provide value. The areas that need
improvement can be determined by reviewing and assessing the product's present manufacturing process. A
final state VSM might be created if the present procedure has been altered to entirely decrease issue regions.
Implementing the new concepts will result in a more effective lean manufacturing process as the final step of
the value stream mapping process.

Purpose of value stream mapping

Importance stream mapping has demonstrated its value in improving the effectiveness of production
processes ever since it was first introduced as a part of the lean approach. This has always been the case
since the invention of the technique. Value stream mapping seeks to increase efficiency while eliminating
waste, which calls for little effort.

It locates the waste's source and reduces it. Any point in the value stream that does not add to the ultimate
consumer's entire value proposition is referred to as "waste." You may recognize these stages and cut them
down to the bare minimum with the aid of VSM. It encourages collaboration and open communication
amongst various groups. VSM improves cross-departmental communication and collaboration across all
areas, from procurement to manufacturing and operations to logistics. While doing so, it makes sure that
each team member has well defined yet flexible duties.

In both aspects of input and output, it increases production efficiency. It accomplishes this by calculating
cycle time, takt time, removing lags and delays, etc. Additionally, resources that are not required for the
finished output are cut out. Value stream mapping offers a foundation for development and expansion.
Additionally, it aids in laying the groundwork for a plan to implement fresh product concepts.

Elements of value stream map

Recognizing and appreciating the elements that each value stream map has as a foundation is the first step in
creating a value stream map that works. Value stream mapping must take into account the foundational four
components of the production process. Which are:

The client: The value mapping stream must include this as a necessary component. Be aware that under the
value system, operational procedures that have no bearing on the final result are less important than what the
consumer perceives as the value. A data box including information on how much of the product the
production team needs to produce each day to meet demand should be added to the symbol for the consumer.
This establishes an efficient process where the cycle time and takt time are equal, and it is also used to
calculate takt time.

31
Provider: The value stream map is also quite important for the supplier. The flow of raw materials utilized in
processing is covered by this. Geographical regions or a generic symbol might be used for various providers.
Knowing your suppliers makes it easier to manage your inventory, capital, and production expenses.

Product flow: The body of the mapping process is comprised of the product flow. It uses symbols to
represent each step used to transform the raw material into the end product. The product flow includes all of
the various stations, including processing, printing, and sealing devices, assembly stations, etc. For adequate
evaluation, information on the human resources engaged in each manufacturing phase is also provided.

Information flow: What you see in this element is the documentation for this phase in the value stream
mapping procedure. The information flow, which is frequently ignored, is crucial to the value stream's
efficient operation. It can be manual, using paper reports and cards, or computerized, utilizing note-taking
software like Trello. Restocking of raw materials, processing and interpreting customer demands, work
schedules, shifts, emails, etc. are all directed by the information flow.

Limitations of value stream mapping

VSM is excellent at locating bottlenecks and other causes of inefficiency for organized and standardized
operations.

However, certain tasks are difficult and heuristic in nature, necessitating imagination, problem-solving, and
the utilization of various materials at various times. Mapping these duties is infamously difficult.

For process operations where time, resources, and participants are very changeable, VSM might not be the
optimal technique. Value stream mapping may be challenging when:

 You lack the necessary mapping knowledge.

 You don't have automated processes set up properly to get the necessary data.
 There is little knowledge exchange between functional silos in your business culture.

In conclusion, it may be exceedingly challenging to obtain the type of useful insights that an organization
needs. By identifying possibilities for improvement that boost efficiency and effectiveness, VSM may
promote value creation by achieving substantial visibility in product delivery processes.

How does Value Stream Mapping work

32
Implementing value stream mapping is a rather simple process. A professional should only create a
functional diagram of your organization's operation on rare occasions. These 10 steps will show you how to
apply value stream mapping to your company.

1. Identify the company's issue

Identifying the issue is the first step in any value stream mapping procedure. Knowing the product and
determining the customer's pain point or value for it are necessary for recognizing the problem. This will
direct the mapping process's goal.

The item, piece of software, or service might be the product. The customer's complaint about such product
may be about the lengthened delivery time, the need for a price cut, the inability to meet the rising demand.
In any case, each team member should be aware of this background information since it will affect how they
approach the value stream map and, in turn, if the output is successful.

2. Define the value stream map's bounds.

Setting limits is a very important VSM stage. Without bounds, even mapping will require excessive and
unneeded energy. The value stream map is more than just a list of every activity carried out by a corporation.
It is a flowchart that depicts the journey of a certain product. 2. Define the value stream map's bounds.

Setting limits is a very important VSM stage. Without bounds, even mapping will require excessive and
unneeded energy. The value stream map is more than just a list of every activity carried out by a corporation.
It is a flowchart that depicts the steps that a certain product must follow and emphasizes the procedures that
add value and those that don't. Establish the beginning and ending points of your value stream map before
you begin. Will it, for instance, cover everything from obtaining raw ingredients through storage? or to
grievances, delivery, and customer service.

3. Carry out a "Gemba Walk"

Drawing a useful value stream map without first participating in the manufacturing process is impossible.
You must perform a waste identification exercise, often known as a "Gemba Walk," rather than relying just
on reports or hearsay for your judgments. The walk may need to be done several times, and it is advised that
you complete it at least twice. This makes it easier to examine the whole process—or at least a large portion
of it—in an overview and identifies important waste sources that may not be included in reports.

4. Outline the actions

33
In a VSM example, the following stage names every procedure and task involved in creating a good or
service with added value for the consumer. This goes beyond just listing a factory's operating processes. The
research must be focused on outlining the information flow that will result in customer value, identifying
additional stages that are essential, and searching for areas of waste.

5. Describe the flow.

The following stage is to add the appropriate arrows to depict the direction of work materials and
information after the manufacturing process has been graphically represented. The value-adding processes
can be highlighted in the middle of the map, and further actions are depicted with vertical arrows drawn
perpendicular to the value stream.

6. Compile vital information.

The next step in the value stream mapping process is data collection. During the second VSM tour, data
collection is possible. This information is utilized for further review and has to be closely connected to each
procedure. The amount of time spent processing each step, the resources required, the inventory on hand, the
number of workers, the processing time, the batch size, the daily client demand, etc. should all be included in
the data gathering.

7. Create a timeline and add data to the map.

After gathering data, you may go back to the map as it is being created and add that data to the boxes under
each procedure. The resources, employees, work time, machine time, quantity of goods processed, lead time,
cycle time, packaging, and shipping time should all be listed in these boxes, as appropriate.

8. Describe waste

The identification and disposal of garbage is the next important step. Inefficiencies in the lean approach may
be divided into six areas and are considered waste.

Overproduction: This creates waste throughout the whole value chain. It entails creating more products than
are required at any one moment.

Conveyance: This refers to the wasteful movement of tangible items or services over longer distances than
necessary. It could be caused by workstations being dispersed too widely.

Waiting: It alludes to the inactivity of equipment or workers who are unable to perform their duties because
resources from the preceding phase are either unavailable or delayed. It has a knock-on effect.

Processing: Products should be produced using only necessary resources to achieve the required level of
quality. Anything more than this is useless.

34
Motion: this includes the time spent performing tasks like hunting for tools that ought to be readily available.
This time and these resources were used to remedy production-related mistakes.

9. Construct and assess the value stream map

The value stream map will then be evaluated, with inputs added where necessary and superfluous parts
removed. The current value stream map for that organization may then be created. A value stream map
depicting an ideal state that shows the objectives everyone should strive to achieve can also be created in the
future.

10. Create an implementation strategy.

It is simpler to follow a value stream map than to actually perform it. When implementation tactics are
disregarded, it turns into more of a showpiece for the business. Use the value stream map to create detailed
instructions that are actionable and measurable steps to increase effectiveness. After then, keep an eye on the
results and modify as required.

Examples of Value Stream Mapping

Almost all industries have adopted this project management method, which has been adjusted to match the
specifics of each industry's procedures. The examples given below can be used as guides for creating your
value stream map.

1. Value stream diagram for the healthcare sector

One of the largest sectors in our modern world is healthcare. The issue of patient waiting times, service
costs, and processes exists in all healthcare settings, including hospitals, clinics, and pharmacies. Any wait
period in the medical field carries the risk of a major mortality. This emphasizes the significance of value
stream mapping and how experts may apply it in the healthcare system to boost productivity and save costs.

Hospitals can make a value stream map that depicts every step a patient takes from the moment they enter
the building until the moment they leave. This covered the time spent in the ER, at the nursing stations,
during consultations, during operation preparation, etc. Clinics and hospitals may pinpoint processes that
cause bottlenecks, provide additional resources there, and enhance overall performance if they are properly
implemented.

2. Value stream mapping in finance

The banking sector is another industry that is rapidly implementing value stream mapping in its business
strategy. The goal of waste reduction and efficiency improvement has not changed. Some common
procedures that cause long bank lines can be automated. Wait times, conveyance, and mobility can be

35
decreased by updating outdated technology and hardware-based IT infrastructure. Value stream maps help
managers locate root reasons, improve tactics in underperforming divisions, and discover areas of the
business or services that perform better than others.

3. Manufacturing industry value stream mapping

Manufacturing industries were where value stream mapping was first introduced. It gained popularity in the
1990s after Toyota published a manual on their manufacturing process. Since then, industrial firms have
imitated the method to enhance performance. In manufacturing firms, the steps used to create a finished
product and deliver it to the customer are closely examined, assessed, and graphically represented. There are
areas of subpar performance that might slow down the overall process. In manufacturing firms, the steps
used to create a finished product and deliver it to the customer are closely examined, assessed, and
graphically represented. It is observed and addressed if there are areas of subpar performance that might
slow down the overall process. Additionally, overproduction hotspots are found.

4. Corporate offices employ value stream mapping

Value stream mapping has practical advantages for corporate organisations as well. Regardless of size, every
office and department in a business engages in a number of behaviours that hinder productivity. As a result,
they may increase productivity by using value stream mapping. Productivity is commonly slowed down by
issues including interdepartmental communication, a shortage of office supplies, congested printing spaces,
inadequate inventory, software and hardware malfunctions, etc. These bottlenecks are identified and dealt
with when a value stream map is being created.

36
 CHAPTER NO – 2

RESEARCH METHODOLOGY

37
 Research Methodology

Research problem statement – To minimize non-value-added activities and making the streamline
flow of processes.

Objectives of the project

1. To study the concept of Value stream mapping

2. To reduce non-value-added activity
3. To Maximize machine, men and space utilization.

Steps of Research Methodology:

Recommend
Future ations
Waste State Map
Drawing Identificat
Current ion
Data
Collectio State Map
Identification
of Product n
Family
Image No 23: Research steps

Data sources and data collection methods.

 Primary data - To effectively grasp the issue, data was gathered and collected. Following the first
selection of a certain item made by this firm for value stream analysis, the issue statement was then
understood. Each station was visited and exact timing of is process was noted and studied. Primary
data was collected by interacting with the workers and knowing the actual process flow.
38
  Secondary data – Secondary data was obtained from the process flowchart and process manuals.
Different reference sheet of process flow was referred. Value stream mapping reference books were
also taken into consideration for making of the actual project report.

Customer Demand
The number of product units or service units that a customer requires in a certain period of time.

Takt Time
The cycle time required to match the pace of the customer demand. Workspace uses the following equation
to calculate takt time.

Takt Time = Total Production Time Available / Demand

Hours/Day (Total production time available)

The total production time available is the total time of a shift minus the total time for lunch breaks, meetings,
and so on. Workspace uses the following equation to calculate total production time available (Hours per
shift) – (Break minutes per shift / 60) * (Shifts per day)

Customer demand and takt time display in the upper right corner of the value stream map

Example

Time: 8 hours x 60 minutes = 480 minutes.

50minute breaks

430 minutes are available.

Demand from customers in 8 hours: 100 units

Takt Time: 430 / 100 = 4.3 minutes = 258 seconds

39
The customers will require 1 unit in this case every 258 seconds. To help with any fluctuation in the process
steps, you might like to manufacture a single unit in slightly less than 258 seconds. However, before
applying takt, it is important to make sure that your processes are dependable and capable of producing high-
quality products.

Cycle time

The time between one finished output and the next finished output is known as the cycle time of a process
step. The Process task window is where you may input the cycle time values. Cycle Time, VA CT (value
added cycle time), and NVA CT can all be entered (non-value added cycle time). When all three values are
entered, Workspace shows the highest value, which is either Cycle Time or the total of VA CT and NVA
CT, on top of the trough. VA CT is always visible at the trough's bottom.

The Cycle Time in this illustration is 35 minutes, the VA CT is 20 minutes, and the NVA CT is 10 minutes.
Due to the fact that 35 minutes is larger than the total of VA CT and NVA CT, it is displayed at the top of
the trough. Cycle time is shown on the timeline in seconds if it is less than or equal to 2 minutes. Cycle time
is shown on the timeline in minutes if it is less than or equal to 2 hours.

Cycle time is calculated in the timeline but not in the task pane if you enter VA CT and NVA CT on a
process shape.

Wait time and inventory time

When both the waiting and the inventory forms are present, the non-value-added times from both are shown
at the peak of the timeline between the process shapes.

Workspace estimates in-process inventory time using the takt time or the cycle time of the following process
step when you enter inventory on an inventory shape on the timeline.

40
The maxima of the timeline are at 5 hours and 3 hours.

You can choose to utilise cycle time or takt time in the calculation for the estimated inventory time on the
Map tab in the task pane.

The following equation is used by Workspace if you want to use Takt Time.

(Inventory) * (Takt time)

The following equation is used by workspace if you use cycle time.

(Inventory) * (Cycle time)

NOTE

The takt time equation is always applied to finished products inventory time. Use the following data in the
cycle time equation.

Cycle Time is equal to the process shape's greatest value, which is to the right of the inventory shape.

A is equal to the lowest of first pass yield or 1 - defect percentage.

B is equal to the lowest of machine availability or operator availability.

Raw material inventory and finished goods inventory

Stock of raw materials is stock that is prepared for processing. On the timeline, it is situated before the first
process form.

41
The product that is ready to be dispatched to clients is known as finished products inventory. On the
timeline, finished goods inventory is to the right of the final process form with cycle time.

Timeline summary box

The timeline summary box of a value stream map maintains a running total of the timeline data. The
following computations are displayed in the timeline summary box, which appears after the final process
shape on the timeline.

Total CT:

The total number of cycle time values that are shown on the timeline.

Total VA CT:

The total of all cycle times with value added that are shown on the timeline.

Total CT NVA:

The timeline shows the entire cycle time less the total value-added cycle time.

Lead Period:

The total of all cycle time and inventory time values shown on the timeline.

Inventory Time for Finished Goods The timeline's inventory time is for finished goods.

Final Goods Time Total:

42
the timeline's finished products section's total for waiting and inventory time.

Final Goods Waiting Period:

the length of time in the timeline's finished products segment.

Cycle Time Efficiency:

Value Added Time/Lead Time is the portion of lead time that provides value.

Raw Materials Inventory Time The raw materials segment of the timeline has an inventory time component.

Total Raw Material Time:

the timeline's raw materials section's total for waiting and inventory time.

Wait Time for Raw Materials:

the period of waiting in the timeline's raw material segment.

Total Time for Inventory:

Sum of all inventory times on the timeline, or total inventory time.

The sum of all wait periods shown on the timeline is the total wait time.

Hold Time:

A hold-up in processing brought on by waiting

WIP Time The length of time a product is in development.

Lead Time - (Inventory Time of Finished Goods + Inventory Time of Raw Materials)

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Current State Material and information flow:

Map No 01: Material and Information Flow

44
CHAPTER NO - 3

Literature review

45
 Literature Review

The phrase "value stream" was initially introduced in the 1990 book The Machine that Changed the World
by Womack, Jones, and Roos. Womack and Jones expanded on this idea in their 1996 book Lean Thinking.
A value stream is the series of actions that a business takes to fulfil a client request, according to Martin and
Osterling in a subsequent book. (Osterling and Martin, 2013) 1 A value stream, defined more generally, is the
series of tasks necessary to plan, create, and deliver an item or service to a consumer. It also includes the

(Osterling and Martin, 2013) A value stream can include both internal and external operations, including
work done by clients. It can also include work done by the business itself. Value streams come in several
forms. The most common form is where a consumer requests a good or service and receives it in the end. A
value stream that aids in the delivery of value is known as a value-enabling or support value stream (e.g., IT
support, hiring, product design).

Building Value Stream Mapping since 1993, the principles of lean production have been applied to the
building industry, giving rise to lean construction (Pasqualini & Zawislak 2005) 2. The construction sector
has also been exposed to the use of the value stream mapping tool, which exemplifies the core ideas of lean
production. Although value stream mapping has been effectively implemented in other industries, it has not
yet reached its full potential in the construction industry. There isn’t many research on VSM in construction,
and those that do focus more on the materials used in the industry than on the actual production process
(Fontanini & Picchi 2004)3.

According to Ballard (2001)4, variability was the primary cause of waste in the construction industry, and
even-flow production may save cycle times by improving the dependability of work flow. Further discussing
the consequences of even flow in construction, Bashford et al. (2003) 5 asserted that the concept had no
bearing on the length of building activities but may lessen the unpredictability of the workflow. By using
value stream mapping to achieve even flow, this study by Yu et al. builds on Ballad and Bashford's work on
house production flow.

46
 Chapter No - 4

Company At Glance

47
 Company Profile
Company Details:

Name of the Organization: Samsonite South Asia Pvt. Ltd.

Industry: Luggage

Headquarters: Luxembourg City, Luxembourg

Founded: 10 March 1910; 112 years ago

Founder: Jesse Shwayder

Address: Gate No. 159 To 163, Near Shalimar Paints, Village Gondhe, Tal. Igatpuri, Nashik- 422403,
Maharashtra, India.

History of the company

The Shwayder Trunk Manufacturing Company was founded on March 10, 1910, in Denver, Colorado, by
Jesse Shwayder (1882–1970), a luggage salesman from Black Hawk, Colorado. [5] A pious man, Shwayder
began using the Samsonite trademark for his tapering vulcanised fibre suitcase in 1941. He named one of his
first cases Samson in honour of the Biblical hero. [6] After realising that the Samsonite bag was its best-
selling item, the company changed its name to SAMSONITE in 1965. The subsidiary SAMSONITE
Furniture Co. produced folding chairs and card tables in Murfreesboro, Tennessee, for many years.

The Shwayder family sold the company to Beatrice Foods in 1973. Before being bought by Kohlberg Kravis
Roberts in 1986, Samsonite was a very autonomous company within the Beatrice area. 1980s and 1990s The
Shwayder family sold the company to Beatrice Foods in 1973. Before being bought by Kohlberg Kravis
Roberts in 1986, Samsonite was a very autonomous company within the Beatrice area. The company had a
series of ownership changes in the 1980s and early 1990s. First, Samsonite and KKR were separated by E-II,

which was now owned by American Brands. [6] E-II changed their name to Astrum International after filing
for bankruptcy. In 1993, Astrum purchased American Tourister luggage together with Samsonite. [7]

48
Samsonite became independent following Astrum's dissolution in 1995 and opened its new Denver
headquarters alongside American Tourister.

At its peak, the Denver complex employed 4,000 people. It closed in May 2001. The Samsonite corporate
offices were moved after a change of ownership in May 2005. Samsonite moved its US sales and marketing
headquarters from 91 Main Street in Warren, Rhode Island, to Mansfield, Massachusetts, on September 1,
2005.

Former Louis Vuitton CEO Marcello Bottoli bought the company in 2005 to bring it out of a lengthy slump.
Bottoli left the company in 2009.CVC Capital Partners, a financial investor, purchased Samsonite in July
2007 for $1.7 billion. Samsonite has been bought five times by CVC Capital Partners Ltd. during the last 21
years. On September 2, 2009, Samsonite Company Store LLC (U.S. Retail Division), previously Samsonite
Company Stores Inc, filed for Chapter 11 bankruptcy. The "Black Label" brand would be discontinued in the
US, and up to 50% of its retail outlets would be closed. $1.25 billion was raised by Samsonite in through its
Hong Kong initial public offering in June 2011, Samsonite raised $1.25 billion in the United States. For $35
million in cash, Samsonite acquired the high-end bag business Hartmann in August 2012. Established in
1877, Hartmann.

In June 2014, Samsonite and Black Diamond, Inc. came to an agreement for Samsonite to purchase Gregory
Mountain Products, a technical outdoor bag firm, for US$85.0 million in cash. The company's largest
acquisition to date, Samsonite agreed to pay $1.8 billion to acquire upscale bag maker Tumi in March 2016.

In April 2017, Samsonite and eBags agreed to a $105 million cash transaction. Revenues for eBags
increased to $158.5 million in 2016.

Samsonite started creating and distributing products with permission from the Danish parent company. In
1961, Samsonite started manufacturing and marketing Lego building toys for the North American market
under licence from the Danish parent firm. A licencing dispute led to the termination of the contract in the
United States in 1972, while Samsonite continued to serve as the distributor in Canada until 1986. Albert H.
Reckler, who was in head of Military and Export Sales for the luggage industry at the time, introduced
Samsonite to the idea of manufacturing and promoting Lego in the United States. He and Stan A. Clamage
were instrumental in making the Lego brand well-known in the US. This was a component of a bigger
company expansion into the toy industry that happened in the 1960s and was abandoned in the 1970s.

40% of Samsonite's hard luggage is made in its factory in Nashik, India. Samsonite has two assembly plants
in Hungary. Samsonite is made in the Szekszard factory in Hungary. Samsonite now has a "F" rating from
the Better Business Organization due to their subpar customer service.

49
Major competitors of samsonite

 Briggs and Riley

 Victorinox
 Gap
 VF Corporation
 Dufry
 Eagle Creek
 Away
 Targus
 VIP
 ZUCA
 Hermes
 Gucci
 Rimowa

SAMSONITE MAJOR BRANDS

Image No 24: Samsonite Brands

 Samsonite
 Tumi
 American tourister
 Speck

50
 Gregory
 High sierra
 Kamiliant
 Ebags
 Lipault
 Hartman

51
 Chapter No- 5

Data analysis and interpretation

52
 Data analysis and interpretation

Analysis of Value Stream Mapping

VSM is a particular kind of flow chart that incorporates symbols referred to as "the language of Lean" to
represent and enhance the flow of inventory and associated information. It makes use of two potent
instruments in one.

The Value Analysis separates actions that the client perceives as adding value from those that do not. The
time spent on each step is calculated using flow analysis. This establishes the cost of conducting business,
the time and effort spent on non-value-adding tasks, and paves the way for waste elimination and process
simplification. Value stream mapping is used to increase value and reduce waste in a variety of methods,
including: Fostering effective collaboration and communication while promoting ongoing process
improvement Establishing Visualizations of Delays, Excess Inventory, And Production Constraints To
Facilitate Culture Change Within An Organization. Value Added, Non-Value Added, Necessary Nonvalue
Added Activities Value-added activities are those processes that must be completed to satisfy your customer
base. For Example:

“There’s no way I’ll buy that unless you include…”

Nonvalue-added activities are production or service-related activities that simply add cost to, or increase
time spent on, a product service without increasing its market value (i. e. 8 classic wastes). For example, the
repair of machines, storage of inventory, moving materials, maintenance, and inspections
Necessary non-value adding activities don’t contribute to customer satisfaction that they must be done and
they are essential and difficult to remove from the operation or production, i. e. comply with regulations or
organizational policies, etc.
Note That:
Nonvalue-added activities consume resources but create no value for the customer. Even if they stopped and
they would be invisible to the end-user or customer.
In conclusion, value-added activities should be further optimized for seeking continuous improvement and
growth of an organization, while the non-value-added activities should be eliminated, or at least minimized
as much as possible.

53
Value and non-value-added activities example

Image No 25: Example of VSM

54
Value Stream Mapping Symbols and Their Components

Customer/Supplier Value Stream Mapping Symbol: The customer or supplier, which is often the end point
for material flow, is shown in the upper left.

Dedicated Process flow is the movement of material through a process, operation, device, or department. It
symbolises a single department with an ongoing, fixed internal flow.

Shared Process Value Stream Mapping Symbol

Shared Process: a procedure, activity, division, or A shared process is one that is utilised by several value
stream families.

Data Box with Value Stream Mapping Symbol

Data Box: It comprises important details and data needed for system analysis and observation.

55
Work cell: Value Stream Mapping Symbol

Work Cell: A manufacturing work Cell that has numerous processes integrated into it.

Inventory: Display inventory between two processes via a value stream mapping.

∆
Shipments, a Value Stream Mapping symbol

Shipments: stand for the flow of raw materials from suppliers to the factory's receiving port or docks.
alternatively, the transfer of finished goods from the factory's shipping port to the clients

Push Arrow Value Stream Mapping Symbol

Material is "pushed" from one process to the next in this diagram by the arrow.

Supermarket: an inventory "supermarket" Value Stream Mapping Symbol:

56
 Material Pull symbol With this "Pull" that denotes physical removal, supermarkets link to downstream
operations.

FIFO Lane is the Value Stream Mapping symbol.

First-In, First-Out inventory is known as FIFO Lane. Use it when input is limited by a FIFO system and
related operations.

Safety Value Stream Mapping Symbol

Symbol for Value Stream Mapping - External Shipment

External shipment: Deliveries made to consumers or from suppliers utilising outside transportation

Production Control: This box symbolises a central production scheduling or control department, person, or
activity in a value stream mapping diagram.

57
The basic flow of information from memos, reports, or conversations is depicted by a straight, thin arrow in
the Value Stream Mapping symbol for manual information. Other notes and frequency may be important.

Symbol for Value Stream Mapping: Electronic Information

Information about electronic flow is represented by this wiggling arrow, which includes EDI, the Internet,
intranets, LANs (local area networks), and WANs (wide area network). You can include the frequency of
data exchange, the means utilised (such as phone, fax, etc.), and the kind of data shared.

Kanban Production is the symbol for value stream mapping. Kanban is a system that starts the manufacture
of a set number of parts. It instructs a process that supplies components to a downstream process to do so.

Symbol for Value Stream Mapping: Withdrawn Kanban

Withdrawn Kanban: This term refers to a gadget or card that tells a material handler to move components
from a store to the receiving process. The material handler (or operator) visits the grocery store and
purchases what is required.

Symbol for Value Stream Mapping: Signal Kanban

58
When the on-hand inventory levels in the supermarket between two operations fall below a trigger or
minimum point, Signal Kanban is employed. Another name for it is "one-per-batch" Kanban.

Symbol for Value Stream Mapping: Kanban Post

A Kanban Post is where Kanban signals are stored in anticipation of collection. frequently employed

Sequence Pull is the Value Stream Mapping symbol for a pull system that directs subassembly operations to
manufacture a set kind and number of goods, generally one unit, without the aid of a store.

Load Levelling is a batch Kanban technique used in value stream mapping to level production volume and
mix across time.

Value Stream Mapping Icon: Go See Production Go See Production is the process of acquiring data visually.

Verbal Information Value Stream Mapping Symbol Verbal Information: Verbal or personal information
flow

59
Kaizen is a Value Stream Mapping symbol that is used to emphasise

Value Stream Mapping Symbol - Kaizen Kaizen: used to draw attention to areas in need of improvement and
schedule kaizen workshops at certain processes that are essential to attaining the value stream's Future State
Map.

Operator is a symbol for an operator in a value stream mapping. It displays how many operators are
necessary to process the VSM family at a certain workstation.

Other Information is a Value Stream Mapping symbol for any additional relevant or possibly helpful
information.

Value Stream Mapping Symbol - Timeline The timeline displays wait periods as well as cycle times, which
are times that contribute value. This should be used to determine Lead Time and Total Cycle Time.

Actual takt time for report: Takt time is the maximum amount of time you need to comply with to meet
customer demand.

60
Types of allowances:

 Personnel needs – 5 %
 Basic fatigue – 4%
 Contingency – 5%

Calculations:

Demand 370 (Bayview 68 inch) bags per shift

Shift time 8.5 hours (510 min) – Lunch, Tea time And Preparation Time.

=510-60

=450 min

Taking the allowances 14%

= 450*14/100

= 63

= 450-63

= 387 min / 23220

Takt time = 23220/370

= 62.75 sec

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 Map No 02: Current State Map

In the current state map the customer demand is analysed and the trend of 3 to 4 months forecast is being
prepared by the production control unit. The production unit is the main element in the value stream map.
The production control unit has the overall control over all the units in the value stream map. The supplier is
the next phase where he is given order 1- 2 months forecast After the supplier receives the order, he manages
the logistics and delivers the order to the rm store where all the raw material is stored.

In later phase the raw material is provided to the injection moulding department according to the just in time
production process plan by which the required amount of top and bottom shells is manufactured. After the
production process of the top and bottom shell the shells are transferred to the shell warehouse and according
62
to the Jit plan given by the planning department the required number of shells of specific size and colour are
transferred to the assembly lines. In the ongoing process all the assembly of the product is performed with
proper accuracy and if any kind of rework is required it is again sent to the required workstation for rework
after the final assembly of the product packaging of it is done and sent to the finished goods section where
all the FG is stored.

From the FG store the finished good is transferred to the mother warehouse. And from the mother ware
house distribution of the product is done according to the customer order placed and fulfilment of the
required orders is performed.

Cycle time for IMD department is 60 sec per shell

Cycle time for WIP assembly is 610 sec

Lead time for IMD is 7 days

Lead time for WIP assembly is 1 day

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Flowchart No 01: Assembly Line A1A

64
Process flow map No. 01: CS TS Assembly process

65
Process flow map No. 02: CS BS Assembly process

66
Process flow map No. 03: Joining TS and BS process

67
 FUTURE STATE VALUE STREAM MAP

Map No 03: Future State Map

In future State map Non-value added time is reduced by performing various methods such as one-piece flow
and SMED. The total lead time is 9 days

And the Non-value added time is 568 sec which is reduced in the future State map and the value added time
is 648 sec.

68
Process flow map No. 04: FS TS Assembly process

69
Process flow map No 05: BS Assembly process

70
Process flow map No 06: Joining TS and BS

71
 CHAPTER NO - 6

FINDINGS AND CONCLUSION

72
 Findings

Objectives of the project

To study the concept of Value stream mapping

To reduce non-value-added activity

 Single piece flow not maintained which causes the stacking on the line.
 Non-value-added activities in various forms of waste such as unutilized labour, motion, waiting.
 Downtime of machine due to repetitive change of operators.
 Physical counting of shells and software data not matched at times when availability of shell is
generated.

To Maximize machine, men and space utilization.

 Improper shell stacking in IMD.

 Required amount of shell trolleys not available.
 Material wastage while filling the hopper.
 Stacking of finished bags in assembly due to unavailability of space in FG and waiting for quality
check and nesting.
 Sticker machine shortage.
 Mould nameplate not available on various moulds.
 Leakage of air in pneumatic guns and pressure lines.
 Excess non-moving stock in SHL.
 Required amounts of jigs not available to keep on simultaneous working.
 Shell not placed properly in SHL at proper section.

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 Conclusion

Value stream mapping is a key Lean strategy for achieving continuous improvement in your work processes.
These are the key advantages of value stream mapping:

 You can use it to visualise and constrain your process.

 It aids in streamlining the manner in which you provide value to your clients.
 It assists you in determining the process phases that are most important.

More study with improved methodology is required before drawing a definitive judgement regarding the
efficacy of Value Stream Mapping. Despite the paucity of data, Value Stream Mapping has the ability to
raise the time-related quality of treatment. When using Value Stream Mapping, it is necessary to look into
the contextual effect in order to draw conclusions about the relationships between various quality domains.
However, the drawback of including diverse and potentially biased data must be taken into consideration for
adopting this review's conclusion.

74
 CHAPTER NO - 7

SUGGESTIONS / RECOMMENDATIONS

75
 Suggestions

1. Non-moving inventory should be removed timely

2.Add new sticker printing machine

3. Shells should be arranged properly in SHL in proper section with proper placarding.

4. Downtime should be minimised with proper utilisation of man power

5. Un necessary movement of worker should be prohibited

6. All tools should be available before work starts.

7. A sticker providing person to provide stickers to all assembly lines.

8. Proper supervision by supervisor should be done to avoid rejection.

9. Mould changeover time should be reduced by using SMED.

76
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