Case Study: Lean Implementation at Siemens’ Kalwa Plant Essay

1 ) 0 EXEC SUMMARY & COMPANY BACKGROUND In 2009, 60 to sixty-five percent from the Switchboard Factory (WSWB) region allocated to production panels (M1) and IVCBs (MC) and remain space remains intended for manufacturing OVCB (MC) and M2 products. This company had 400 staff (blue and white collar) and personnel worked in 2 working shifts and one extra shift (if necessary).

Make cycle – order preparing and logistic: Technical Buy Processing office (TOP) received orders and recorded that in to the development planning databases according to their times after that delivery committee tried to predicted the delivery date to the customer. Every order needed two type of unprocessed trash (equipments): 1-electrical, 2- mechanised, the top staff wrote the necessary equipments within a list that called (BOM) bill of materials list. The BOM sent by simply enterprise resource planning application (ERP) for the material preparing department, physical equipments were existed inside the company and electrical needed to order to the supplier. In that case procurement pattern started following equipments discharge to the store according to the necessity.

The completely manufacturing program had various error, spend and inefficiencies in shop floor and logistic (they wasted very long time and beneficial raw materials and sometimes the made panels thrown away because of fragile layout design), on the other hand in 2006 buyer demands elevated around seventy five percent and managers need to enhance their making process performance to reduce their costs and act in response sooner to the consumer demand. in October 06\ Siemens AKTIENGESELLSCHAFT sent a letter about the implementation of lean supervision in Kalwa company and mentioned they eagerness to enhance Kalwa manufacturer like the various other branches throughout the world. That they expected this implementation is going to enhance company’s capacity to multiple during 5 or 6 years. the lean staff decided to break down their becomes: 1-layout 2-support system 3-vendor management 4-cultural changes, which will these adjustments caused to enhance the Kalwa company performance.

Lean staff had meeting with personnel of sections that had even more errors following lean setup, team members attempted to find out concerns and keep pace with solve the situation. 2 . zero QUESTION you Has Siemen’s Kalwa grow been successful in obtaining lean setup? In our thoughts and opinions, Siemens Kalwa Plant has become affective in achieving low fat implementation.

The main contributing factors for a highly effective lean setup for Siemens Kalwa Grow are the following: 1 . Leading Management provide a very good support and clear course a. Business lead by Global Head, Mister Gewald 2 . Proper organizing in understanding the as is procedure and to end up being process g. 6 months of impact assessment and feasibility study about Vacuum Signal Breaker (VCB) existing products processes four. Formation of Implementation crew to operationalize and monitor h. Siemens Kalwa Plant General Administrator, Mr Khandekar as the top for both the solar panels and VCB implementation group i. Supported by Mr Vedak for VCB j. Operating group by cross functional team managers and business owners 5. Web page visit to study from a real life low fat implementation k. 2-3 associates and Mr Vedak frequented lean plant Maruti d. Kandekar and Vedak visited Siemens Switchboard in Turkey 7. Corporation are highly committed and determined in implementing lean o. Group commanders support the employees maintaining the pace of the line p. Khandekar wonderful management staff will enroll in the dash meeting to solve issues q. By the actions of 7. a and six. b, the employee realizes the importance of the effort and start to commit themselves in making this a success l. With correct training, automobile feels participate and motivated to ensure the projects is a achievement The several contributing factors above allow Siemens Kalwa plant to effectively implement the changes essential below: 1 ) Layout improvements 3. 0QUESTION 2 In the first step Vedak and some people of the team had a vacation to the lean plant of Maruti and they could understood benefits of lean management at the same time some American consultants appeared to the Kalwa factory to cooperate with them in lean administration process setup.

Initially consultants had a ending up in manager and explained pertaining to him benefits associated with lean management like: maximize productivity, decrease in inventory amounts and increase space utilization. In 08 khandekar and Vedak stopped at Siemens web page in Turkey and shocked of put into practice lean supervision results in firm efficiency. Managers needed to restructure layout and process to implement lean management. certainly errors, issues and waste products were not clear before rendering, during this procedure managers asked every section idea to attain efficient ways and reduce next impact between personnel. Kalwa Company needs this process because total needs enhanced for his or her panels.

Business must improved exist traditional layout in operating sections that needed unity between workers and supervisors. They will decided to develop workers with rewards in the event that they will capture the enough production month-to-month. They decided to prepare 6 work areas along their very own five assemblage lines and in addition they made this method flexible to work with leader employee team to aid the various other assembly line (if necessary). As a Mather of fact, it’s necessary to alter support program for new layout, managers used a panel at the beginning of every assembly line which describe whom are person in costs? Production features and their quantity?

And required raw materials this board called dashboard and help to the company to find out the mistake or some weakness points during the process. Seriously, suppliers were one of the most vital parts for their JIT and lean management. Lean companies need the correct component in a correct time mainly because they do not have got inventory any more.

In the beginning there were various inconsistency among company’s operational section and suppliers which may cause to direct meeting among lean affiliates with them and associates describe that it can be possible this kind of methods make extra cost for yourself but in while this method will improve company production quantity and improve your offering. Mr. khandekar decided to accumulated every series member (engineers, workers, and so on ) together to improve their very own organization traditions, for feeling team belonging he made a decision to take 40 min for their pray and sport activity daily. three or more. 0 QUESTION 3 What resistance do Khandekar face in putting into action the alter and how come?

Lean is definitely consider one of the most important accomplishment factor in a company strategy as one of its primary focus is usually to diminish impediments to the creation line to be able to ensure easy process movement by eliminating squander. As observed in the article, time spend was evident throughout the office in the worth chain which requires major changes to the method flow. Due to the fact that this would involve adjustment towards the process circulation and straight impact the way in which employees have been performing all their task for many years, it has made resentment via various sets of employees.

Eventually, most of the departments involved have become defensive of their own approach as well as the way they are doing their operate. Furthermore, the employees bonuses had been solely influenced by the line’s productivity. In case where throughput of the collection is affected due to problems, workers’ efficiency as well as their very own salary will probably be affected because they need to delay until the issue is deal with and might ought to extend all their working several hours. Therefore , the disruption was unacceptable and was exponentially boosted by the work union. Supplier management is considered one of the toughest issues and it posed major issues for Kalwa plant.

This while, suppliers were accustomed to supplying in amounts the required supplies and products for a more and more orders with a certain day. Thus majority of the distributors could take full advantage of the cost advantages due to delivering materials to conserve. However , with lean rendering, the material is only required as soon as the individual panel came around the production collection since there is no longer needs pertaining to materials to be delivered by simply batch or by buyers order.

The change a new vast effects to suppliers where sellers were necessary to be regularly reminded in the new layout and to offer the goods this day which in turn impede their profits since they could will no longer exploit the economies of scale. Additionally , the new build has also keep an impact to the material organizing group because they need to organize order for seperate panels regularly instead of purchasing in bulk and require to be in constant contact with the suppliers to guarantee the material is definitely delivered in time. 5. 0QUESTION 4 6. 0QUESTION a few How was the lean setup institutionalized in the new set-up?

When Siemens AG (headquarters) decided to implement lean making in the Kalwa factory, handful of initial methods were taken to ensure a suitable foundation in terms of knowledge and understanding of slim manufacturing is first build inside the Kalwa manufacturing plant. Mr. Gewald, global head for spearheading lean project was brought in to the Kalwa factory to educate the top management level on what lean manufacturing is all about and how it can boost and benefit the factory. One among first few actions that Mister.

Gewald got was to contact form a trim implementation group with Mr. Khandekar because the task leader and Mr. Vedak as the lean administrator. Mr.

Gewald with the help of consultants from Usa held few meetings together with the management to describe the potential great things about the implementation. Through thinking and recognition sessions, the consultant staff also offered presentation within the successful lean implementation consist of companies specifically at Toyota. Apart from that, Mr. Khandekar and Mr.

Vedak also had a series of manufacturer visits to companies which may have completed the implementation of lean manufacturing. The main reason for all this gatherings, presentation and visits would have been to create the management’s assurance and show how the implementation will be beneficial. Creating the idea and confidence of the managing is essential in ensuring the success of the setup.

Once the low fat team have been formed as well as the essence of lean making has been included in all of them, the team starts the implementation process. Physique 1 show the implementation method. Observations & Analysis of Current procedure flow Recognize Waste Location Identify Alterations and Execution Monitoring Performances * Current process flow chart comes from the process mapping activity. 2. A monitoring team was created to doc, analyses and report about these KPIs. Apart from structure changes, low fat team also made changes in support system for the availability line.

The main idea is to bring in ownership concept to the production line whereby the owner must be answerable to all or any problem that arise below his control. Dashboards were introduced at the beginning of each flow line. Any issues in the production series will be highlight in the plank with brand of the related personal. Conferences will be placed on daily bases to oversee each of the issues. The dashboard also will display daily out of every assembly line showing progress in each collection.

Apart from that skill assessment in the employees and top administration were also done continuously to identify skill gaps and ideal training will be arranged. Difference in Vendor Administration. Implementing slim manufacturing inside the Kalwa manufacturer alone probably would not be adequate to eliminate spend.

With suppliers continuously delivering material or part to conserve orders, wastage of safe-keeping or inventory space happens in the manufacturing plant. With the accessibility to extra material or parts, manufacturing problem will go undetected. As such, merchant management was also required to be changed. The key idea the following is to have the right quantity of parts available at the moment with the right top quality.

Vendor will have to supply every single order volume accordingly rather that offering in group. Because of some difficult facing the sellers, short term and long term plans were made. Permanent plans should be implement slim principle on the vendor’s end. As for short-term plans will be the implementation of pull viewpoint of the lean system where vendors is going to manufacture material in bulk yet deliver it to stock as needed by the series.

This is to minimize storage and inventory space in the manufacturing plant. Occurs of producing mistake or perhaps defects may come to the familiarity with the line managers or administrators. Once all the changes have been implemented in line with the plan, the next important stage that was taken should be to monitor the potency of the changes. By using Mr.

Gewald, the monitoring KPIs had been defined to analyze the effectiveness of lean system for the overall performance of the factory. A monitoring staff was formed to continuously doc, analyze and report in these KPIs to the Siemens AG (headquarters) on month to month bases. To summary, we could say many key actions have been taken to institutionalize the lean execution in the fresh set-up of the Kalwa Manufacturer. i) Ahead of implementation method was began, a proper base was built-in the company simply by educating the top management around the lean concepts. ii) A sound setup plan was performed by the trim team by first, analyzing the existing process to recognize inefficiencies.

Then simply determine methods to improve them. iii) The lean group continued to educate all staff from personnel level to worker level to ensure all of them understood the lean concepts. iv) Proper monitoring was done to know the effectiveness of all of the changes manufactured. v) Mr. Khandekar and his team also continually come up with creative solutions for problem just like resentment and worker concerns.