Salient Features of New Scheme of Lean Manufacturing for MSME Quality Council of India
Relevance of Lean in MSME sector
Quality Council of India Cabinet decision to establish Quality Council of India, in 1996 Formed in January 1997. Non-profit autonomous society Joint initiative of the Government of India, and the Indian Industry, namely ASSOCHAM, CII and FICCI. PPP – 50% seed money by Govt; 50% by the industry bodies Purpose : Mission : To establish & operate national accreditation Quality for the National Well Being structure and to promote Quality through nation wide quality campaign 3
Governance Council – 38 members Governing Body – 11 members out of the Council Chairman - appointed by the Prime Minister on recommendation of the Government and Industry. Past Chairmen : Mr. Ratan N. Tata (1997-99) Mr. Venu Srinivasan (1999-01) Dr. R. A. Mashelkar (2001-07) Mr. Ajay Shankar (2007-10) Mr. Arun Maira (2010 -13) Mr. Saurabh Chandra (2014) Mr. Amitabh Kant (2014) Current Chairman Mr. Adil Zainulbhai 4
* Currently an independent autonomous organization under 5 5 Department of Science & Technology
Working With MSME Training of ITI Teachers – 1800 Teachers trained on QMS/ QT Tools Awareness Programs on QMS/ QT Tools -198 programs, 7000 individuals trained on QMS/ QT tools Cluster project : Implementation of QMS/ QT Tools in 10 identified clusters Training of Polytechnic Teachers on QMS/ QT tools Evaluation Study report on Lean Manufacturing Competitiveness National Workshop on Enabling MSME to be Competitive through Quality Tools
ROLE of MSME Worldwide, micro, small and medium enterprises (MSMEs) have been accepted as the engine of economic growth and for promoting equitable development. MSMEs constitute over 90% of total enterprises in most of the economies and are credited with generating the highest rates of employment growth and account for a major share of industrial production and exports. In India too, the MSMEs play a pivotal role in the overall industrial economy of the country. MSMEs in India account for more than 80% of the total number of industrial enterprises and produce over 8000 value-added products . It is estimated that in terms of value, the sector accounts for 45% of the manufacturing output and 40% of the total export of the country and employs over 6 crore people. Further, in recent years the MSME sector has consistently registered higher growth rate compared to the overall industrial sector. The major advantage of the sector is its employment potential at low capital cost (skill development).
Status of MSME’s The Micro, Small and Medium Enterprises (MSMEs) are a vital part of the Indian economy contributing to over 45% of industrial production and around 40% of the total exports. There are more than 13 million MSMEs in India employing about 31 million people, easily the single largest contributor in terms employment generation in the manufacturing sector Manufacturing Sector has The National Manufacturing Policy of Government been recognized as the of India envisages share of manufacturing to reach main engine for growth of target of 25% of the National GDP by 2022 the economy The share of the To achieve a sustained rate of growth, the manufacturing sector in Indian manufacturing sector needs to build and National GDP over the years maintain competitiveness needed to face the has stagnated to 14-15% only challenges posed by globalization Under the LM Scheme, MSMEs will be assisted in reducing their manufacturing costs, through proper personnel management, better space utilization, scientific inventory management, improved process flows , reduced engineering time and so on with application of LM techniques
Problems being faced by MSME Despite constituting more than 80 % of the total number of industrial enterprises and supporting industrial development, many MSMEs in India have problems such as • sub-optimal scale of operation • technological obsolescence • supply chain inefficiencies • increasing domestic and global competition • fund shortage • change in manufacturing strategies • turbulent and uncertain market scenario.
Lean Manufacturing The goal of Lean Manufacturing is to Lean manufacturing is incorporate aimed at the elimination of - less human effort, waste in every area of - less inventory, production including - less time to develop products, and - less space - customer relations, - product design, to become highly responsive to customer - supplier networks and demand, while at the same time producing top quality products in the most efficient - factory management and economical manner.
Lean Manufacturing goals
4 Goals of Lean • In today’s order to stay competitive in Improve marketplace, a company must understand its customers' wants and needs and design Quality processes to meet their expectations and requirements. • Waste is any activity that consumes time, Eliminate resources, or space but does not add any value to the product or service. Waste • Reducing the time it takes to finish an activity Reduce Time from start to finish is one of the most effective ways to eliminate waste and lower costs.. • To minimize cost, a company must produce Reduce Total only to customer demand. Overproduction increases a company’s inventory costs due to Cost storage needs.
Lean The term “lean” is used because lean manufacturing uses “less”… • Labor in factory 1 • Manufacturing space 2 • Capital Investment 3 • Material 4 • Time between the customer order and the product shipment 5
Definition of Lean A systematic approach to identifying and eliminating waste ( non-value-added activities ) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection . ” Non-value added is an Value-added is an activity activity that takes time, that transforms or shapes resources or space, but raw material or information to does not add to the meet customer requirements. value of the product or service itself. Waste : Anything that adds Cost to the product without adding Value
The Basics of Lean Manufacturing - Eliminating work processes that add no value to the product It means : - Simplify those processes that add value Typically >95% of Total Lead Time is Non-Value Added!! OrderProcessing, Transport, Storage, Waiting, RUN Rework, Machine Setup, Inspection, Machine TIME Breakdowns, etc... Total Lead Time
5 Principles of Lean Define Value from the • Specify value from the standpoint of the end customer by product family. Customer Perspective • Identify all the steps in the value stream for each product Identify the value family, eliminating whenever possible those steps that do not stream create value. • Make the value-creating steps occur in tight sequence so the Make the process flow product will flow smoothly toward the customer Pull from the customer • Make only what the customer has ordered • As value is specified, value streams are identified, wasted Head toward steps are removed, and flow and pull are introduced, begin Perfection the process again and continue it until a state of perfection is reached in which perfect value is created with no waste.
8 Wastes of Lean “OMIT What U DO” • Waiting • Overproduction What O • Motion • Underutilized M People U • Inventory I • Defects • Over-processing Do • Transportation T
Lean Vs Traditional Lean Traditional Simple and visual signals Complex Demand driven Forecast driven Inventory as Excessive inventory needed Speed up value- Reduce non-value added work added Batch production Small lot size Long lead time Minimal lead time Inspected-in Quality built Functional Value stream departments managers
Benefits of Lean Manufacturing Helps in – Real Results 0 50 100 Cost reduction Lead Time Cycle time reduction Reduction “Waste” minimization Productivity Increase Elimination of non- WIP value-added activities Reduction Resulting in a more Quality Improvement “lean,” competitive, Space agile, and market- Utilization responsive company
5S TPM ( Total Productive Maintenance) Lean Just in Time (JIT) Tools Kanban System Poka Yoke or Cellular Mistake Proofing Layout Value Stream Mapping
The 5 S systems is a workplace organization which helps in getting the "junk" out of the work area and set of procedures to keep it that way. 5S stands for Sort, Set in order, Shine, Standardize & Sustain. Visual controls such as cartoons, charts, light signals, Lane marking on floor, Safety instructions, Warning signs, Poka-Yoke instructions etc. can be displayed all over the work place. All verbal instructions should be converted to SOPs to remove dependency on skilled personnel in achieving required product quality level, consistency, effectiveness and efficiency.
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