Industry research on lean implementation in Electrical & Electronics industry - preview

LASSIB

SOCIETY

INDUSTRY RESEARCH ON LEAN IMPLEMENTATION

IN ELECTRICAL AND ELECTRONICS INDUSTRY

LASSIB Society | Industry Research on Lean and Six Sigma Implementation in Electrical & Electronics Industry

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Table of Contents

1.0 ABSTRACT ...............................................................................................................................3

2.0 INTRODUCTION .......................................................................................................................3

3.0 STRATEGIC CHAL L ENGES BEING FACED BY EL ECTRICAL & EL ECTRO NICS INDUSTRY ...................4

4.0 OPERATIONAL CHALL ENGES BEING FACED BY EL ECTRICAL & EL ECTRONICS INDUSTRY ..............5

5.0 ROL E OF L EAN TO OVERCOME THESE CHALL ENGES ..................................................................6

5.1 STRATEGIC BENEFITS ...........................................................................................................7

5.2 OPERATIONAL BENEFITS......................................................................................................7

5.3 ADMINISTRATIVE BENEF ITS .................................................................................................7

6.0 SAMPL E ORGANIZATIONS IMPL EMENTING L EAN IN THE EL ECTRICAL &

EL ECTRONICSINDUSTRY..........................................................................................................8

7.0 CASE STUDIES OF L EAN IMPL EMENTATION IN EL ECTRICAL & EL ECTRONICS INDUSTRY ..............9

7.1 TEL EDYNE TEKMAR .............................................................................................................9

7.2 KODAK GCG FACTORY IN L EEDS, ENGLAND ..........................................................................9

7.3 EL ECTRICAL & EL ECTRONIC INDUSTRY IN MAL A YSIA ..........................................................10

7.4 L ARGE EL ECTRONIC FIRM IN KUWAIT ................................................................................10

7.5 L ARGE INTRUMENTATION FIRM IN UNITED STATES............................................................11

8.0 WHAT IS L EAN? .....................................................................................................................12

9.0 CONCL USION ........................................................................................................................14

WORKS CITED ..................................................................................................................................15

10.0 ABOUT L ASSIB.......................................................................................................................16

11.0 ABOUT L ASSIB RESEARC H REPORTS .......................................................................................16

12.0 CONTRIBUTORS TO THE RESEARCH REPORT ...........................................................................17

13.0 HOW YOU CAN L EVERAGE AND SUPPORT L ASSIB SOCIETY .....................................................17


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1.0 ABSTRACT

The purpose behind creating this research report is to showcase the Return on Investments

(ROI) and benefits of using Lean techniques in Electronics and Electrical Industries.

The challenges currently being faced in this industry can be largely broken into two

categories –

Strategic Challenges

Operational Challenges

Organizations need to focus initiatives at both these levels in order to sustain and grow. This

report looks at tools and techniques of Lean and Six Sigma, and how these can help

organizations address these requirements. The report includes overview of Lean with case

studies on how these techniques have helped Electrical and Electronics companies manage

and grow their business.

The report draws in experience of Electrical & Electronics experts, primary as well as

secondary research sources. Please refer to the list of references at the end of the report for

a complete list of sources used to build this report.

2.0 INTRODUCTION


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3.0 STRATEGIC CHALLENGES BEING FACED BY ELECTRICAL & ELECTRONICS

INDUSTRY


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4.0 OPERATIONAL CHALLENG ES BEING FACED BY ELECTRICAL & ELECTRONICS

INDUSTRY


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5.0 ROLE OF LEANTO OVERCOME THESE CHA LLENGES


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5.1 STRATEGIC BENEFITS

5.2 OPERATIONAL BENEFITS

5.3 ADMINISTRATIVE BENEFITS


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6.0 SAMPLE ORGANIZATIONS IMPLEMENTING LEAN IN THE ELECTRICAL &

ELECTRONICSINDUSTRY


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7.0 CASE STUDIES OF LEAN IMPLEMENTATION IN ELECTRICAL & ELECTRONICS

INDUSTRY

7.1 TELEDYNE TEKMAR

7.2 KODAK GCG FACTORY IN LEEDS, ENGLAND


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7.3 ELECTRICAL & ELECTRONIC INDUSTRY IN MALA YSIA

7.4 LARGE ELECTRONIC FIRM IN KUWAIT


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7.5 LARGE INTRUMENTATION FIRM IN UNITED STATES


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8.0 WHAT IS LEAN?

Lean is a philosophy and a set of management techniques focused on continuous

“eliminating waste” so that every process, task or work action is made “value adding” (the real output customer pays for!!) as viewed from customer perspective. Lean “waste

elimination” targets the “Eight Wastes” namely:

• Overproduction – Making more than what is needed by customer / market demand

• Over-processing- Doing more to a product/service (but not perceived as value by customer or business)

• Waiting – For material, information, people, equipment, procedures, approvals and more

• Transportation – Movement of

products / items during or after production

• Defects – Errors, mistakes, non-

complying products, services, documents, transactions

• Rework and Scrap – Products, transactions or outputs not meeting specifications and

have to be fixed, redone, rectified, marked down or scrapped / unusable

• Motion – Mainly people, document movement, searching etc.

• Inventory – Buffer stocks or resources (Raw, Work in process, Finished Goods, Bench staff etc.,)

• Unused Creativity – People knowledge and skills that are not utilized by the company Wastes make the organization slow, inefficient and uncompetitive. Lean methods help to remove / reduce waste and contributes to driving “business agility” (velocity) through smooth work flow across the organization resulting in rapid fulfilment of customer needs in an optimum manner.(ExampleCG) Lean tools and techniques are designed to eliminate waste, and every organization is

subject to generating waste.


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Waste in the supply chain

Waste in the technical specifications Waste in the staff support functions

Waste in the office processing

Waste in the manufacturing processes Waste equates to dollars lost, opportunities lost, and loss of human motivation. Each of these three criteria can have a positive and / or negative impact on the organization's bottom line. And the bottom line can be the difference between profit and loss to an organization, or the difference between just barely making a marginal profit and becoming a “cash cow” enterprise. Waste equates to dollars lost Every organization has an intrinsic proclivity to generate waste in the way they run their business. Waste is the difference between the way things are now and the way things could be if everything were perfect-no errors, troubles, problems or complexities. The Lean Enterprise process can be simplified by first, “find the waste;” secondly, to “get rid of the waste;” and thirdly, “prevent its return-forever." The Lean process looks everywhere for waste and reviews every activity to evaluate whether it adds value from the external customer’s viewpoint.

Waste equates to opportunities lost Implementing lean tools and techniques will enable your organization, no matter how large

or small, to meet your customers’ demand for a quality product or service , at the time they need it, and for a price that is competitive.

A lean system also creates a business and manufacturing process that is agile and efficient,

and that will help your company manage its total costs and provide a fair ROI.

Waste equates to loss of human motivation For cost management to be successful, everyone in your organization must contribute to

the effort. They must feel a part of the improvement process, and be empowered to commit time and intellectual resources to the effort.

And because lean systems are customer focused and driven, a lean enterprise’s products and services are created and delivered in the right amounts, to the right location, at the

right time, and in the right condition.

Did you know that in American offices, an average of 6 weeks per year or 13% of a workday are wasted simply by searching for items? Taking a workday of 7 hours per day and 232

working days a year, would result in wastage of 211 hours per person per year. Ultimately, assuming an average hourly rate of $60 per hour per person would result in a total of

$12,600peryear in wasted time per person!


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These figures are immense and show that many companies can not only increase their productivity by optimizing their business processes but often also have a high potential of improving performance in their sites and offices. Most people excuse their messy sites and offices by saying they don’t have time to clean. But dealing with the consequences of a chaotic workspace takes far more time than simply cleaning. If a clean office increases your productivity by only 20%, that can convert into approximately $40,000 to $50,000 in value over the next 10 years. A clean site and office also pays off in reduced stress and anguish, not to forget about improved safety.

9.0 CONCLUSION

Lean has been at the forefront of the quality movement in recent years. On the way to get more and more importance, Lean has conquered many areas by improving the performance of several processes. Lean thinking gives the potential to refine current

approaches to Electrical & Electronics Industry improvement. In addition to elimination of waste, it offers benefits by delivering reduced variation. However, in order for this

approach to be successful, it needs strong linkages to strategy, a clear collaborative framework and a combination of tools for addressing the twin goals of waste and variation

reduction.

The benefits for a company by application of Lean can be manifold. These benefits, for example, can be increase in customer satisfaction, increase in revenues, reduction in cycle times and higher flexibility to capitalize on present-day market demands.


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WORKS CITED

al, W. e. (1990).

Allen N. Chournos. Lean Manufacturing. Salt Lake City: Premier Consulting, Inc.

Allen N. Chournos, . Lean Manufacturing. Salt Lake City: Premier Computing, Inc.

BUREAU VERITAS GROUP. (2012). Electrical & Electronics. The Challenge: Delivering Internationally Compliant

Products .

By Frank J. Esposto. Less Overfill Can Mean More Proofit. USC Consulting Group.

c. (fbfxb ). c cv: cx .

Empfasis. (2008). Lean Manufacturing for Electronics. United States.

ExampleCG. (n.d.). Lean Six Sigma an Overview. Lean Six Sigma an Overview , 5.

Hisham Sabry. (2010). Enterprise Cost Reduction through Lean Six Sigma Implementation. Kuwait.

James D. Tarr. (n.d.). Seven ways to reduce your inventory. Seven Ways To Reduce Your Inventory , pp. 1-2.

John Gillett, Ross Fink, Nick Bevington. (2010). How Caterpillar Uses Six Sigma to execute strategy. United

States: Caterpillar.

kjn. (lkj). j. ikj.

Mark Zetter. (2009). Economic drivers, challenges creating regional electronics industry. Economic drivers,

challenges creating regional electronics industry .

Matthew Moore. (2008). The Kodak Operating System: successfully integrating Lean. Leeds: Improvement and

Innovation.com.

Menlo. (2008-2012). About Menlo: Lean Logistics. About Menlo: Lean Logistics .

Mike Roberts. (2012). Top Challenges In Electronics Manufacturing. MANUFACTURING.NET.

Ranawat, M. (2007). Six Sigma in Logistics. Munich: GRIN Publishing GmbH.

Steven Bonacorsi. Six Sigma in Action: Shipping Cost Reduction. United States: GE Capital.

TEKMAR. Teledyne Tekmar Lean Implementation. Mason: Teledyne Tekmar.

UNESCO. (2010). Engineering: Issues, Challenges and opportunities for devlopment. France: UNESCO.

Vikram Dahiya. (2012). Shipping Logistics. United States.

Yu Cheng Wong, Kuan Yew Wong, Anwar Ali. (2009). Lean Manufacturing Implementation in the Malaysian

Electrical & Electronics Industry. European Journal of Scientific Research , 522-535.


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10.0 ABOUT LASSIB

LASSIB Society is a not-for-profit organization pioneering and spreading the knowledge of Organizational

Excellence to the worldwide community. Based on the principles on Gandhian Engineering, we deliver cutting

edge industry research and enhanced value. LASSIB's vision is to create and provide the worl d's most useful

Organizational Excellence resource centre and certification programs, available for the users at the lowest

cost.

LASSIB Society organizes multiple events both through physical locations and virtual mediums to promote its

vision.

11.0 ABOUT LASSIB RESEARCH REPORTS

In conjunction with the Knowledge Base LASSIB Society publishes , LASSIB Society also releases a hostof

research reports through primary and secondary research. These research reports get wide audience across

the industry and are sought after by International Journals as well.

Some of the research reports published by LASSIB Society around the world include:

Industry Research on Lean and Six Sigma Implementation in Logistics Industry

Framework for Implementation of Lean Tools in Indian MSME Sector

Lean Six Sigma for Graduates and Post Graduates

Return on Investment after Implementation of 5S

These Research Reports are a valuable resource for the industry at large, and serve to provide key insights that

can be used by industry leaders to shape the strategy for their organizations.

Please refer to http://www.lassib.org/ for details of all research reports of LASSIB Society.

http://www.lassib.org/


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12.0 CONTRIBUTORS TO THE RESEARC H REPORT

Role Full Name Designation Organization

Author Mr. Varun Khare Coordinator LASSIB Society

Reviewer Ms. Shilpa Kota Secretary LASSIB Society

13.0 HOW YOU CAN LEVERAGE AND SUPPORT LASSIB SOCIETY

Although LASSIB is a not for profit organization, it does not believe in raising funds through charitable means,

without providing direct value to the contributor. There are many different ways in which organizations,

institutions, governments and individuals across the globe are working with LASSIB to deliver value to

themselves and their customers. LASSIB is proud to be associated with all of them in developing and delivering

cutting edge solutions that have not only delivered quantified business value to them but also added thought

leadership to the industry at large. Below are some ways in which you can leverage and support LASSIB.

Leverage LASSIB for

your initiatives

Benefits to you Support to LASSIB

Become an

Individual or

Organization

Member of LASSIB.

Visit

https://lassib.org/ind

ex.php/membership

to know more about

LASSIB membership

options.

Access complete knowledge base including

training materials, best practices, case studies, videos and webinars from LASSIB Society

Network, learn and contribute to the fastest

growing community of specialist, senior leaders from the industry

Get latest updates, insights and research from

the industry delivered to your Inbox

Funds collected through

membership fees are used to

maintain and grow LASSIB

knowledge base.

Leverage Training

and Certification in

themes of

Organization

Excellence.

Get trained from the leading experts from the

industry who bring together years of experience and best in class training skills, tools and technologies

Acquire not only knowledge but skills to

implement the knowledge in real life scenarios

Attain internationally respected certifications

thereby adding value to your organization and yourself

Join the growing panel of Accredited Training

Providers (ATP) and Accredited Test Centers (ATC) of LASSIB Society to deliver value within

your organization.

Training and certification fees

charged by LASSIB Society are the

lowest in the Industry in order to

ensure these key components are

available within reach to masses.

The fees charged helps cover the

cost incurred by LASSIB Society for

hiring trainers and issuing

certificates.

Consult with LASSIB

experts to deliver

business and

customer value

Solve organization problems, create strategy,

deliver customer value through proven tools and

techniques of Lean and Six Sigma

Consulting fees derived by LASSIB

Society aids LASSIB to fund

research, host events and provide

free consulting services to

organizations which cannot afford

to pay yet.

https://lassib.org/index.php/membership

https://lassib.org/index.php/membership


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Participate in LASSIB

Events

Network, brainstorm, and learn from industry

leaders, face to face, over exciting discussions

Sponsorship costs and delegate

fees assist LASSIB in conducting

these events and spreading the

awareness within the community.

Participate and

leverage Industry

Research

Understand the trends in the industry

Identify common challenges and best practices

Hear from experts on future forecasts

By participating in building these

reports, you provide the

opportunity to LASSIB to share

your knowledge with the rest of

the industry.

Please refer to http://www.lassib.org for details on LASSIB or

Send a note to [email protected] to get connected to a LASSIB consultant or

Call +91-9246185187 (India) to speak to a LASSIB consultant directly.


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Industry research on lean implementation in Electrical & Electronics industry - preview

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