Browse Publications Technical Papers 2010-01-2025

Implementation of Lean Manufacturing to Improve Competitiveness 2010-01-2025

In traditional manufacturing processes a lot of material is wasted in hidden ways. These can be identified through Lean Manufacturing systems. It is proven that the Lean Approach eliminates waste and improves value. This reduces excessive investment in working capital and improves Return on Invested Capital (RoIC). As a result, the shareholder's value is maximized through simultaneously reducing costs and increasing capital efficiency.
To demonstrate this we analyzed the production process of the Upper Output Shaft , a key component in a typical drive train assembly like a Four Wheel Drive transfer case, used in a pickup truck or SUV. Value Stream Mapping (VSM) is used to identify and reduce non value-added activities. VSM methodology for Output Shaft delivered the following benefits for DivgiWarner:
  • Reduction in Inventory by 66%,
  • Process cycle efficiency improved by 228%,
  • Manpower cost reduced by 43%
  • Material movement in the plant reduced by 68%
  • Improvement in RoIC by 32%
  • Cost of part reduced by 11%
This paper illustrates how to implement lean principles in the manufacturing environments of order-based medium scale production to eliminate wastes in the form of defects, unnecessary processing, and excess inventory. With the use of lean tools, we also show how to set performance baselines, track continuous improvements, and communicate progress to pursue perfection


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