Lean Implementation at a Siemens PlantKALWA’S CASE STUDY

GLOBAL OPERATIONS MANAGEMENTDR. ANTONY POTTER – PROF. ANTONY PAULRAJ

Lean in Kalwa Plant:MAIN CHANGES

Layout •Assembly Lines•Workstations•Cell Layout

Processes

•Panels Move•TAKT Time•Quota•Andon Lights•JIT Delivery

Culture •Team spirit•Communication•Responsibility and Accountability•Interdependency

TPS

Lean in Kalwa Plant:MAIN PROBLEMS

CustomerSatisfaction

Customers who switch to the competition(based on our firm's retention rate)

Production

PEOPLE:x Resentment and Lack of

Understanding

x Lack of Skills

x Blame Games / Low Team Spirit

x Payment Affected by Interruptions (Bonus System)

MANAGEMENT & PROCESSES:x Material Management

x Vendor Management

x Lack of Coordination Between Departments (Information Management)

x Errors (Being Exposed), Decreasing Throughput

WASTE

Order Fulfilment

4

CustomerSatisfaction

Customers who switch to the competition(based on our firm's retention rate)

Lean in Kalwa Plant:SOLUTIONS

PEOPLE: Communication and

Leadership (Vision, Sense Making) Meetings and Team Appraisal

Assessments and Training Sessions

Discussions, Team Building Initiatives, Team Reshuffling

Reviewed Bonus System Payment Productivity

MANAGEMENT & PROCESSES: Panel Wise Issued BOMs and

Regular Communication

Communication, Short Term: JIT Delivery, Long Term: Lean Implementation

Incorporation of Interdependencies for Documentation and SAP Entries

Root Cause Analysis and Suitable Changes, Ingrain Lean, Reduce Stops

Production

WASTE

Order Fulfilment

5Lean in Kalwa Plant:IMPACT ON OPERATIONAL PERFORMANCE

Reduced Inventories

Increased Individual Responsibility

Stronger Regulatory Compliance

Not Actual Values, but

INCREMENTS

Foundation/Philosophy

Heijunka Standardised Work Kaizen

Pillar I Pillar II

Build in Quality

Poka-Yoke

RC Analysis

Takt Time

Pull System

Jidoka

JIT

TPSHighest QualityLowest LeadtimeLow Cost

Change in Layout

Pull System Implementation/

Kanban

Level Production

Philosophy Based on Production/Quality.

Short term/Long term

Andon System

JIT / Inventory ReductionPoka-YokeRC Analysis

VSM Muda Reduction

Employee´s Suggestions

Suppliers are Not Assisted on Quality

Siemen’s House

(Liker 2004)

8Sustaining Lean in Kalwa Plant:OVERVIEW

Packaging

International Marketin g

Personnel / Staff

Board of D irectors

Delivery

Department

Mechanism

Workgroup

New Initiatives

9Sustaining Lean in Kalwa Plant:PROCESSES

Ideas & Solutions Developed in Visual Management Board

Process & Equipment

Planning &

Control

HumanResources

Customers

Relationship

Manufacturing

Product

Design

Suppliers

Relationship

10

Sustaining Lean in Kalwa Plant:PROCESSES

StandardisationMore Efficiency

Easy Implementation of Procedures

Lower Error Probability

Lower Inventories

Internal Setup

External Setup Streamline

(coordinate) setup times

Perform parallel setup activities (add human resources)

Identify Exploit

Subordinate Elevate

11

Sustaining Lean in Kalwa Plant:PROCESSES

Forklift truck

12

Sustaining Lean in Kalwa Plant:PEOPLE/CULTURE

Economic Security

Group Membership Successful Team

Self-Actualisation

Self-Esteem

Social / Belonging

Safety / Security

Physical / Survival

Comments about Previous Shift Discussion about Indicators (Trends) Health, Safety or improvements

issues Encourages Competitiveness

between shifts 5S’s enforcementPresentation

Throughput Quality (FPY)

Balance Lever

Goal achievement

Maximise Efficiency Minimise Quality Defects Alignment Between Individual

and Company’s Goals Encourages Ideas Development

Teamwork

(Robbins & Coulter, 2010)

13

Sustaining Lean in Kalwa Plant:PEOPLE/CULTURE

Self-Actualisation

Self-Esteem

Social / Belonging

Safety / Security

Physical / Survival

Challenging ProjectsInnovation Opportunity

CreativityLearning at High Level

Recognition

Supportive

Committed

Present

StrongConference

Aim

Performance Quality Issues Compensation Scheme

Results Focus on Win-Win Approach

(Robbins & Coulter, 2010)

14

Staff Retention

•Implementation Decay → Develop and Maintain Training Processes

Focus Group

•Brainstorming, New Ideas Development•Tied With Compensation System•Workers and Managers•Every 4 Months

Sustaining Lean in Kalwa Plant:PEOPLE/CULTURE

Self-Actualisation

Self-Esteem

Social / Belonging

Safety / Security

Physical / Survival

Challenging ProjectsInnovation Opportunity

CreativityLearning at High Level

Economic Security

Group Membership Successful Team

Important Projects Recognition

(Robbins & Coulter, 2010)

Lean Implementation at a Siemens PlantKALWA’S CASE STUDY

GLOBAL OPERATIONS MANAGEMENTDR. ANTONY POTTER – PROF. ANTONY PAULRAJ