Paper Review Report

(Assignment 1 )

Paper Considered -Lean Adoption in Small

Manufacturing Shops: Attributes and Challenges
BY
Dr. Manocher Djassemi
The Journal of Technology, Management, and Applied Engineering (JITMAE)
Volume 30, Number 1 January March 2014

Submitted by
Nedunuri Sarat Chandra
Student Id No: 104334656
Date of Submission: 3rd June 2015

ABSTRACT:
We all are aware that lean principles application in large manufacturing plants is
wide and being improved by various consistent lean practices. The objective of this
paper is to present what all are the potential barriers to be faced while
implementing these lean practices in small manufacturing shops (SMS). Initially
the variation in the application of lean system in large and small manufacturing
plants were listed out and subsequently the possible solutions were stated in for
implanting these system in SMS in comparison with similar efforts in large
manufacturing plants. A three phase implementation strategy namely training of the
diverse team of employees by external consultants, finding out the possible
improvement opportunities and implementation of lean practices was followed. A
SMS was considered for the real time application of these stated three phase
strategy and found out the various backdrops of where the non-value added time is
being wasted excessively and resolving the same, processes that might help for the
lowest cost with best quality make. All the managerial aspects that are to be taken
into consideration for the successful implementation of the lean practices in spite
of various barriers were discussed. The training provided by the external
consultants to the teams for operation of the kaizen events with the available
environment in SMS lead to found out the six pilot projects that are to be
considered for the process improvements in the SMSs. Ultimately it was found out
that the systematic approach of lean practices in small manufacturing shops despite
of the challenges can result in an eliminating waste or non-value added activities
and improving production cost, quality and delivery even in the SMS.
Methods Used: Implementation of lean practices in Small manufacturing plants
comprising with employee number less than 100, limited resources and production
deadlines have to be done in a systematic planned way keeping in consideration of
the stated backdrops. The three phase implementation strategy was done in a
sequential way initially the strategy was generally stated and later on the real time
application on a SMS was done. The shop that was considered machine shop that
serves large customers in the aerospace and semiconductor industries with
prototypes and low to mid volume parts. This particular company has 50
employees which is idle for the lean adoption being a small firm.

Phase 1 Training: This training involves a brief classroom teaching to the

employees by the outside certified consultants on lean implication practices in such
a way to achieve tangible levels of improvement. This includes a 5 week intensive
training comprising of 2 hours of training, 4 days a week for every employee. For
this employees have to be divided into six teams for the training. Spending on
these outside consultants is a wise idea as SMS cannot afford for an internal
consulting team for small number of employees moreover the money spend on this
training can be compensated by the fruitful results after the lean process
implication. Earlier in the classes the objective of lean principles and in what way
that helps on the process improvement with the available resources were explained
to the employees followed by the lean tools prioritization matrix, value stream
mapping, caused and effect and the 5- why analysis.
Improvement in Teams: The teams should be divided in a mixed way such that
every employee comes to interaction with the other operation employee and get to
know a basic information of operations which are of not in his knowledge. The
team composition was made keeping in consideration about the maximizing
diversity and this was achieved by decomposition/ re composition matrix such that
every team comprises of members from each different operation. Other
considerations are like each team should not concentrate on only one particular
operation and care should be taken that no particular team causes any internal
disturbance in the manufacturing. To ensure the unitedness care should be taken
that every member of the company have to attend all training sessions and
consequentially every member should be in each team. The teams were then
assigned for their respective job roles for a 10 week period of time for collecting
the data and process observations by the guidelines taken in the training sessions a
detailed study of the 10 week report of the employees pertains for the pilot projects
and managerial aspects to be considered for this SMS for the process improvement.
Phase 2 Kaizen events: The teams after training will be working on sorting out
the issues in the production in various aspects and work on the process
improvements along with the lowering of the cost. The exposure that teams gained
through the lean principles now they put that into the real time practice and their
diversified teams comprising of members from different operational areas in the
shop provides them an opportunity to gain the knowledge from others. This
improves the working environment effectively as for an example every team may
consist a manager, machinist and technicians which leads them to gain knowledge
from one another for the effective process improvement.

The figure below shows the strategy or the pictorial representation of the
methodology being implemented in a SMS.

Phase 3 Implementation:
After the six teams have sorted out the improvement projects that are to be
undertaken a systematic approach plan for their implementation will be prepared

and submitted to the managements approval. The teams were trained in a way that
their plan comprises of identification of the problem with the root cause of that
particular problem, resolution to that particular problem with a systematic strategy
for its execution. A detailed study measures will be stated in the form of pilot
projects for the efficient results. The projects found out by the team members may
be similar at some aspects as they may have the same root cause this may be due to
the overlap in the initial phase. However the identified projects may have
coherence despite of the process they worked form the starting due to the linkage
between the processes in the shop. The consultant service advice or guide by
showing the path to the team members but the real implementation was done by
the diversified team members only.
Pilot Projects: The pilot projects identified in this particular machine shop causing
the waste or reducing the efficiency of the production are as below:
1) Non value added time due to surface finish: It was found that a
considerable amount of non-value added time is being spend on the parts
surface quality for surface finishing, cleaning and deburring. The resolution
for the same is the working members having no knowledge on the parts
priority.
2) Machine Maintenance: This is another non-value added time being spend
for the clamping of machine tools on the machine. The negative aspect while
this work is taking place is that the machine will not be in work which
ultimately leads to the break in the production time. The non-availability of
the machines for any purpose costs a lot to the management so the possible
resolution given by the team members for the same is that the machinists are
to be trained in such a way of doing the setup externally by providing the
suitable holders and supports. This approach of providing the external setup
will not lead to any interruption in the operation of machine which
ultimately does not affect the production.
3) Engineering Contract issues: In many of the small manufacturing shops
the engineering is provided by a customer contract. There will be mutual
understanding for the payment depending upon the project. It was identified
that the customer contract was spending 40% more labor time than that was
agreed in the contract. This will ultimately increase the project cost which is
a waste of cost to the management. The resolution for the same is given by
comparing the standards of the contracts with the previous allocated

contracts and by improving the accounting of the contracts for avoiding the
stated mistakes.
4) Cutting Tools Placement: In the machine shops cutting tools are
mandatory for each operation a non-proper placement of these tools will lead
to non-value added search time of these tools. Moreover the efficiency of
these cutting tools are also to be ensured on daily basis as replacement time
for each of the non-proper tools also is again a waste of time. So the
implementation of 5S (sort, straighten, shine, standard and sustain) is to be
done as proper storage of these tools is essential for saving the operation
time without any delay and employees should strictly follow the replacement
of the tools in the storage after their usage.
5) Fixtures Identification: In this particular shop it was noted that a
considerable amount of time is being wasted for searching of the fixtures in
the storage. These fixtures are used for holding purpose in complex machine
operations. The resolution provided for the same is to set a new fixture
storage place with visual management system which will fix the wastage of
time in these fixtures.
6) Efficient strategy for the working of Quality and assurance department:
Many state that Q&A department work as non-value added time being spent
but this will not be true in most of the cases as an error in any product
supplied to the customer will considerably affect the business relationship
between the customer and the shop. In this particular machine shop it was
noted that enormous amount of the time is being wasted in the Q&A
department which stops the products supply to the customer. Moreover
customers requirement is that a certified product only will be accepted by
them so an efficient working process for quality and assurance of the parts is
mandatory. The teams identified that the main reason for the delay in this
department is due to the over workload on these particular employees and
communication gap between the other departments with the Q&A
department. The resolution was stated based on the study of the total
overtime spend on Q&A tasks and on time delivery rate. The other
departments were trained with the basic quality assurance tasks that can be
done during their particular operation only which consequently reduces the
part workload on the Q&A department. An efficient interaction of the Q&A
and other processing departments is to be done for scheduling the tasks with
higher accuracy.

The below table shows the improved performance for the Q&A department after
implementing the countermeasures for the problems

Discussions and Conclusions: The author tried to explain the lean adoption
strategy in small manufacturing shops in a very efficient way with a systematic
approach. The great advantage of this study of the real time application of the
theoretical approach on a SMS and sorting out the problems with respective
countermeasures in resolving the same. It was significantly proved in this study
that adoption of these principles improved the overall production efficiency with
minimizing the losses and cost. Apart from the sorting out of the issues with the
resolution managerial aspects like training, dissemination, tracking the waste, lean
level scheduling are briefly stated that are to be considered by the management.
Author specified that adoption of lean principles in SMS with less employees and
limited resources is tough as this will reduce the production levels but no in detail
countermeasure for facing this issue is not illustrated. Moreover the pilot projects
that are stated can be identified by the value stream mapping also so a detailed
study of the lean principles and direct implantation of a particular principle is not
done a generalized approach was done in most of the cases which is a backdrop. It
was stated that investment for the training can be compensated by the results
obtained after implication of lean practices but no proper financial figures were
stated that proofs the above statement. However a detailed study with linkage of
each lean tools like 5S, visual management system, standardization, and statistical
process control with real problems encountered in the selected machine shop was
not done which should be next approach of this particular paper. Incorporating the
above statement in a detailed way would be very helpful for the management of the
SMS.
If I had been leading the research: The papers main objective was to adoption of
the lean principles in small manufacturing shops SMS. The possible suggestions
that I could recommend for this paper are still more a clear picture should be
provided, how exactly we can manage the productivity levels not going down

while consequently the lean adoption training and implementation was going on.
The exact implication of kaizen or lean tools like 5S, visual management system,
standardization, statistical process control and more with a linkage of the problems
that are being encountered in a SMS. Another main important criteria is that the
training costs are to be kept in mind and incorporating these lean tools all of a
sudden is not that easy so consequently I would recommend a backup team to take
care there are no loses with the present production levels.
My Recommendations for the Pilot Projects apart from the stated things are like
every employee should be aware about the project deadlines and priority work
orders including which provides the SMS more money profits. Even though in a
small members of 50 there would always be some efficient and smart employees
care should be taken by the manager that these employees are given majorly the
priority orders which enables the quick completion of the job. Deploying an
external consultant agency for training is an economical idea but what would be
the situation if there was any dispute in implementing lean practices after the
agency leaves this would again create an issue of stopping the work, so probably I
would believe that even though it is a small shop there should be at least one
efficient employee who has good knowledge in lean practices moreover hi spay
would never be a loss he can be helpful for supervision of the work and get know
where exactly a problem is being occurred. Employees should also be trained for
an optimistic approach while completing the jobs with the limited available
resources in SMS. Apart from the above stated rest of the approaches for lean
adoption in a SMS that were stated in this paper are really appreciable as SMS also
play a very significant role in the manufacturing sector efficient working
environment for this SMS is highly recommended.