case study of kaizen and 5S implementation

1. A Presentation on Implementation on Kaizen & 5S Technology in
PVC Pipes Manufacturing Company
Presented BY:
Ms.Shubhangi.Gurway
Asst.Prof Priyadarshini Bhagwati College of Engineering,Nagpur

2. Broad Contents of The
Presentation
 Introduction of Kaizen & 5S
 Aim
 Objective
 Literature Review
 Methodology
 Problem Statement
 Implementation of Kaizen & 5S
 Validation after implementation
 Result & Discussion
 Conclusion & Future Scope

3. INTRODUCTION
A continuous improvement process which when
apply with 5S solve many of the problem related to
productivity improvement, stock-out ,incresed lead
time etc.
The present work is on finding out the improvement
opportunity using continuous improvement

4. AIM
The aim of the present work is to implement
Kaizen & 5s technique in PVC & HDPE Pipe
manufacturing company to improve productivity &
reduce probability of stock out.

5. OBJECTIVE
The main objective of the present work as follows:-
To study the concept of Kaizen & 5S in manufacturing
Industry
To study improvement opportunity using Kaizen & 5S
To develop Conceptual Simulation Model
To validate the model in case company

6. LITERATURE REVIEW
IMPORTANCE of KAIZEN CONCEPT IN MEDIUM
MANUFACTURING ENTERPRISES.By Abhijit
Chakraborty,Associate Prof,Global Institute of
Management and Technology,West Bengal, India
Madhuri Bhattacharya, Asst. Prof., Narula institute
of Technology, West Bengal, India Saikat
Ghosh,Final year student, Global Institute of

7. An Exploratory Study on Implementation of Lean
Manufacturing Practices (With Special Reference to
Automobile Sector Industry) Er. Rajesh Kumar Mehta
Faculty-RIT, Indore, INDIA Dr. Dhermendra Mehta Faculty-
FMS-Pt.JNIBM, Vikram University, Ujjain (MP), INDIA Dr.
Naveen K. Mehta Faculty-MIT, Ujjain (MP), INDIA
KAIZEN: A Case study in small scale organizations Pramod
Kumar Assistant professor in Mechanical Department of
Jagannath University, Jaipur (Raj.) Vineet Pandey, Assistant
professor in Mechanical Department of Banasthali

8.  Applying Gemba Kaizen at SKS Separator in cement
plant: A case study Mr. Bhupendra Kumar Daiya,
Lecturer Mechanical Engineering, Govt. Polytechnic
College, Chittorgarh (Raj.), India
Lean Manufacturing Implementation in the
Assembly shop of Tractor Manufacturing Company
(case study on kaizen implementation) By Gundeep
Singh, Dr. R.M. Belokar

9. Applying the Kaizen Method and the 5S Technique in
the Activity of Post-Sale Services in the Knowledge-
Based Organization Mihail Aurel Titu; Constantin
Oprean and Daniel Grecu.
Kaizen Implementation in an Industry in India:
A Case Study By Rajesh Gautam,Manav Bharti
University, Solan, Himachal Pradesh, India Sushil
Kumar, 1Manav Bharti University, Solan, Himachal
Pradesh, India Dr. Sultan Singh Panipat institute of
Engg. & Technology, Smalkha, Panipat, India.

10. METHODOLOGY

11. COMPANY SELECTION
To implement Kaizen & 5S we have selected a
PVC pipe manufacturing company currently facing with
the problem of Increased lead time and Stock out
problem.
Company profile
Modigold Pipes Pvt. Ltd
B-10, MIDC, Buttibori,Nagpur.

12. PROBLEM STATEMENT
The company is dealing with the manufacturing of
varieties of pipes with the variation of 40mm to
200mm diameter pipe. Which is facing with some of
the problem
1.More lead time for sales order processing
2.More production cycle time.
3.Work hazardness
4.Stock out problem

13. Stepwise production process of
pipe

14. TIME CALCULATION BEFORE
IMPLEMENTATION
Sr
No
Time factor Calculated time
(In Hour)
1 Raw Material Preparation Time 0.54Hr
2 Machining Time 2.70Hr
3 Socket making time 1.25 Hr
4 Total Production Time( M/c warm up
time+RMPT+MT+SMT)
3.33+0.54+2.70+1.25 =
7.82Hr.
5 Lead Time ( Total production
time+transportation)
1 to 3.5 Days (depend on
source destination
destination)

15. ESTIMATION OF STOCK OUT
The first 12 demand collected from the companies production
manager are:
Sr. No X (Demand per
month)
X-µ (X-µ)2
1 17.50 -7.975 63.60063
2 10.00 -15.475 239.4756
3 20.00 -5.475 29.97563
4 20.00 -5.475 29.97563
5 50.00 24.525 601.4756
6 53.20 27.725 768.6756
7 21.00 -4.475 20.02563
8 000 -25.475 648.9756
9 8.00 -17.475 305.3756
10 36.00 10.525 110.7756
11 30.00 4.525 20.47563
Sr. No X (Demand per
month)
X-µ (X-µ)2
1 17.50 -7.975 63.60063
2 10.00 -15.475 239.4756
3 20.00 -5.475 29.97563
4 20.00 -5.475 29.97563
5 50.00 24.525 601.4756
6 53.20 27.725 768.6756
7 21.00 -4.475 20.02563
8 000 -25.475 648.9756
9 8.00 -17.475 305.3756
10 36.00 10.525 110.7756
11 30.00 4.525 20.47563

16. ANALYSIS OF CURRENT
STOCK OUT PROBLEM
The demand of PVC pipes of 75mm/4kg pipes for a
company follows the normal distribution with a mean
of 25.5 units/month and standard deviation of 15.94
units/month. The lead time is distributed uniformly
from 1 t0 3.5 month. If the company is maintaining the
safety stock of 18units,the estimated probability of
stock out using Monte-Carlo simulation technique is
shown in table below:
(Note:1unit=100pipes)

17. MONTE-CARLO SIMULATION
Sr. No Lead time
in month
Demand/
month
Demand
above
average
Stock out?
(demand>
18units)
Random.
No (from
table)
(1)
Lead time
2.5*f(t)=1
(2)
Random.
No
(from
Table)
(3)
Normal
deviation
(Z)
(4)
X=µ+z*σ
(demand)
(5)
(demand/m
onth-Avg.
demand)*
lead time
[(5)-µ]*(2)
1 0.7571 2.892 0.6644 0.425 32.2495 19.5969 YES
2 0.8703 3.17575 0.8005 0.842 38.896 42.623 YES
3 0.8069 3.01725 0.4382 -0.155 23.0043 7.4547 NO
4 0.6081 2.520 0.9041 1.305 46.2767 52.425 YES
5 0.9861 3.46525 0.7937 0.82 38.5458 45.29 YES
6 0.2785 1.696 0.4981 -0.02 25.1562 -0.540 NO
7 0.5194 2.2985 0.1986 -0.843 12.03758 -30.885 NO
8 0.0475 1.1187 0.5066 0.015 25.7141 0.267 NO

18. RESULT AFTER SIMULATION MODEL
Probability of stock out is 50% with the
safety stock of 18 units which is not decided by any
scientific technique

19. INDENTIFIED CAUSES OF
PROBLEM
Improper Raw material Stock mainatenance

20. Poor working environment

21. AREAS NEED IMPROVEMENT
Raw material storage section
Need of Inventory record keeping for data
maintenance
Finished good storage area
Supporting tool storage area.
No scientific provision for maintaining safety stock.

22. IMPLEMENTATION PROCESS
The implementation process involve following areas
1.Countermeasure for poor working area and improper
stock maintenance
2.Countermeasure for safety stock determination
3.Calculation of safety stock

23. Countermeasure for poor working area
and improper stock maintenance
Preparation of Kaizen sheet
Preparation of 5S sheet

24. Plant: Modigold
pipe s pvt ltd.
Butibori, Nagpur
Kaizen Theme : To
improve the
productivity
Problem/present
statu Barrel size
changing operation
required more time.
Proble m/pre s e nt
s tatus
More time for
preparation of
production stock (raw
material mixing)
Proble m/pre s e nt
s tatus
Difficulty to operator
for producing varieties
of pipe size which
increase production
time
Problem present status
Difficulty during
transportation of pipes
to the transportation
depot
Root caus e
Stock of barrels and supporting tools are not
maintained in good condition, hence more
searching time is there
Counte rme as ure
The barrel should be kept at shortest
possible distance & the stock should be
labelled with respective pipe size
Kaizen event sheet Modigold pipes private. Ltd.
Machine: Extrusion molding machine
Idea: Reduce change over time,lead
time,improve working area
Root caus e
The raw material inventory is not properly
maintained
Counte rme as ure
The inventory should be maintained with
proper identification mark for each variety
of raw material
Root cause
Production planning is not proper and the as
there is a huge variation in the pipe size there
is a need of proper identification for each pipe
size & understandable production plan
Countermeasure
Proper production plan with pipe size on
each machine
Root cause
The finish good inventory is not properly
maintained with varying pipe size
Countermeasure
The stock should be label for ease in
identification

25. Computerized data maintenance
MODIGOLD PIPES PVT LTD
Butibori Nagpur
R-PVC
Sr.no. Item
KGS
/
Roll
Monthl
y
Openin
g 3 OCT 2014
Rate/I
NR
Disco
unt
Amount
(Rs)
Opening Receipt Dispatch Closing
1 40mm 6KGPCS 0 0 0 0 0 0 0 0
2 50mm 6KGPCS 0 0 0 0 0 0 0 0
3 63mm 4KGPCS 1005 1005 0 0 1005 386 33.8 256810
4 63mm 6KGPCS 0 0 0 0 0 557 33.8 0
5 75mm 2.5 KGPCS 0 0 0 0 0 0 33.8 0
6 75mm 4KGPCS 558 558 0 0 558 547 33.8 202060
7 75mm 6KGPCS 245 245 0 0 245 785 33.8 127319
8 90mm 2.5KGPCS 336 336 0 0 336 531 33.8 118111
9 90mm 4KGPCS 638 638 0 0 638 767 33.8 323947
10 90mm 6KGPCS 369 369 0 0 369 1123 33.8 274324
11 110mm 2.5KGPCS 163 163 0 0 163 783 33.8 84490.4
12 110mm 4KGPCS 381 381 0 0 381 1115 33.8 281228

26. Calculation of Safety stock
If R is the rate a consumption demand) ,L is the
lead time, then Consumption rate during the lead
time = RL
If s is the safety stock , and Q is the re-order
quantity, then
Maximum stock level, Q+S
Minimum stock level, S=s
Production Point = Safety stock + consumption
during lead time
= safety stock + mean lead time consumption

27. In this first we have to find the probability of stock out when
the company is maintaining the minimum stock of 18 units i.e
1800 pipes (one specific item).mean demand is 25.475 and std.
deviation is 15.94.the probability that the demand comes more
than 18 unit is calculated as
X=18 in terms of z is
Z= (18-25.475)/15.95=-0.46895 (approximately -0.47)
P(x>18) = P (Z>-0.46895)
=Area right to z=-0.47
= (area between z=0 to z=0.47) + 0.5000
= 0.1808+0.5000
= 0.6808
68.08% of probability of stock out when the company is
maintaining a safety stock of 18 units. Then what should be the
safety stock?

28. For the usual demand pattern drawn from the observation and production
manager the mean and standard deviation was found to be 25.475 and 15.94
respectively. The policy of the management is to have 95% of the service level.
For approximately 95% of the service level (approximately 0.9495 and
0.9405)The values of area for z= 1.64 and z=1.65 which can be calculated as :
Approximate values from table are
A = 0.9405 and A= 0.9505 which are taken from z= 1.64 and z= 1.65
By interpolation actual value of z will be
Z= 1.64 + [ (0.9500-0.9405)/(0.9505-0.9405)* (1.65-1.64) ]=1.68475
µ = 25.475 and σ = 15.94
Therefore , Safety stock =z *σ
= 1.64875 * 15.94
=26.28 approximately (26.3 units)
Therefore the company should maintain a safety stock of 26.28 units for 95% of
the service level.

29. Validation after implementation
Sr. No Lead time
in month
Demand/
month
Demand
above
average
Stock out?
(demand
>26.3units
)
Random.
No (from
table)
(1)
Lead time
2.3*f(t)=1
(2)
Random.
No
(from
Table)
(3)
Normal
deviation(
Z)
(4)
X=µ+z*σ
(demand)
(5)
(demand/
month-Avg.
demand)*le
ad time
[(5)-µ]*(2)
1 0.7571 2.74133 0.6644 0.425 32.2495 18.5711400
9
NO
2 0.8703 3.00169 0.8005 0.842 38.896 40.2871223 YES
3 0.8069 2.85587 0.4382 -0.155 23.0043 -
7.05599800
9
NO
4 0.6081 2.39863 0.9041 1.305 46.2767 49.8955816
7
YES
5 0.9861 3.26803 0.7937 0.82 38.5458 42.7157665
2
YES

30. RESULT
Sr
no
Factor Before Kaizen implementation After Kaizen implementation Diffrence
1 Total
production
time
Raw material preparation
time+Machining time+Socket
making time+M/c warm up time
=0.54Hr+2.70Hr+1.25Hr+3.33
=7.82Hour
Raw material preparation
time+Machining time+Socket
making time+M/c warm up time
=0.495Hr+2.38Hr+1.15Hr+3.33
Hr
=7.315
Raw material
preparation time
Before:0.54Hr
After: 0.495
Difference:
0.54-0.495
=0.045Hr (2.7min)
2 Lead time 1 to 3.5 day 1 to 3.3 days Reduction of lead
time by 0.2 day
3 Safety stock 20 units (without any technical
assumption)
26.3 units calculated value NA
4 Probability of
stock out
50 % of the time stock out
situation
40% probability of stock out Probability of
stock out will be
reduce by 10 %

31. CONCLUSION
Kaizen has been successfully implemented in the
PVC pipe manufacturing company and the
determination of stock out situation before kaizen
implementation is completed using simulation model
& validation after implementation is done with 10%
reduction in stock out.

32. REFERENCES
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Componenet Manufacturing Company.
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www.iosrjen.org Volume 2, Issue 9 (September 2012), PP 01-06
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Tractor Manufacturing”. International Journal of Innovative Technology and Exploring
Engineering (IJITEE) ISSN: 2278-3075, Volume-1, Issue-2, July 2012

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34. THANK YOU