LASSIB - Industry Research on Lean Implementation in Electrical & Electronics Industry - Preview

1. LASSIB INDUSTRY RESEARCH ON LEAN IMPLEMENTATION
SOCIETY IN ELECTRICAL AND ELECTRONICS INDUSTRY

2. Table of Contents
1 .0 ABSTRACT ...............................................................................................................................3
2 .0 IN TRODUCTION .......................................................................................................................3
3 .0 STRATEGIC CHAL L EN GES BEIN G FACED BY EL ECTRICAL & EL ECTRO N ICS IN DUSTRY ...................4
4 .0 OPERATION AL CHALL EN GES BEIN G FACED BY EL ECTRICAL & EL ECTRON ICS IN DUSTRY ..............5
5 .0 ROL E OF L EAN TO OVERCOME THESE CHALL EN GES ..................................................................6
5 .1 STRATEGIC BEN EFITS ...........................................................................................................7
5 .2 OPERATION AL BEN EFITS......................................................................................................7
5 .3 ADMIN ISTRATIVE BEN EF ITS .................................................................................................7
6 .0 SAMPL E ORGAN IZATION S IMPL EMEN TIN G L EAN IN THE EL ECTRICAL &
EL ECTRON ICSIN DUSTRY..........................................................................................................8
7 .0 CASE STUDIES OF L EAN IMPL EMEN TATION IN EL ECTRICAL & EL ECTRON ICS IN DUSTRY ..............9
7 .1 TEL EDYN E TEKMAR .............................................................................................................9
7 .2 KODAK GCG FACTORY IN L EEDS, EN GLAN D ..........................................................................9
7 .3 EL ECTRICAL & EL ECTRON IC IN DUSTRY IN MAL A YSIA ..........................................................1 0
7 .4 L ARGE EL ECTRON IC FIRM IN KUWAIT ................................................................................1 0
7 .5 L ARGE IN TRUMEN TATION FIRM IN UN ITED STATES............................................................1 1
8 .0 WHAT IS L EAN ? .....................................................................................................................1 2
9 .0 CON CL USION ........................................................................................................................1 4
WORKS CITED ..................................................................................................................................1 5
1 0 .0 ABOUT L ASSIB.......................................................................................................................1 6
1 1 .0 ABOUT L ASSIB RESEARC H REPORTS .......................................................................................1 6
1 2 .0 CON TRIBUTORS TO THE RESEARCH REPORT ...........................................................................1 7
1 3 .0 HOW YOU CAN L EVERAGE AN D SUPPORT L ASSIB S OCIETY .....................................................1 7
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3. 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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4. 3.0 STRATEGIC CHALLENGES BEING FACED BY ELECTRICAL & ELECTRO NICS
INDUSTRY
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5. 4.0 OPERATIONAL CHALLENG ES BEING FACED BY ELECTRICAL & ELECTRONICS
INDUSTRY
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6. 5.0 ROLE OF LEANTO OVERCOME THESE CHA LLENGES
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7. 5.1 STRATEGIC BENEFITS
5.2 OPERATIONAL BENEFITS
5.3 ADMINISTRATIVE BENEFITS
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8. 6.0 SAMPLE ORGANIZATIONS IMPLEMENTING LEAN IN THE ELECTRICAL &
ELECTRONICSINDUSTRY
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9. 7.0 CASE STUDIES OF LEAN IMPLEMENTATION IN ELECTRICAL & ELECT RONICS
INDUSTRY
7.1 TELEDYNE TEKMAR
7.2 KODAK GCG FACTORY IN LEEDS, ENGLAND
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10. 7.3 ELECTRICAL & ELECTRO NIC INDUSTRY IN MALA YSIA
7.4 LARGE ELECTRONIC FIRM IN KUWAIT
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11. 7.5 LARGE INTRUMENTATION FIRM IN UNITED STATES
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12. 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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13. 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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14. 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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15. 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 Invento ry , pp. 1-2.
John Gillett, Ross Fink, Nick Bevington. (2010). How Caterpilla r 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 Moor e. (2008). The Kodak Operating System: successfully integ rating Lean. Leeds: Improvement and
Innovation.com.
Menlo. (2008-2012). About Menlo: Lean Logistics. About Menlo: Lean Logistics .
Mike Roberts. (2012). Top Challenges In Electronics Manufactu ring. MANUFACTURING.NET.
Ranawat, M. (2007). Six Sigma in Logistics. Munich: GRIN Publishing GmbH.
Steven Bonacorsi. Six Sigma in Action: Shipping Cost Redu ction. United States: GE Capital.
TEKMAR. Teledyne Tekmar Lean Implementation. Mason: Teledyne Tekmar.
UNESCO. (2010). Engineering: Issues, Challenges and opportunities fo r 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 Scien tific Research , 522-535.
LASSIB Society | Industry Research on Lean and Six Sigma Implementation in Electrical & Electronics Industry
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16. 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.
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17. 12.0 CONTRIBUTORS TO THE RESEARC H REPOR T
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
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