An Approach To Implement Lean Concepts in Supply Chain of Steel Industry
An Approach To Implement Lean Concepts in Supply Chain of Steel Industry
Bachelor of Engineering
In
INDUSTRIAL ENGINEERING
By
Jatin Pradhan (46)
Lakshya Sarda (52)
Shubham Tiwari (72)
1
AN APPROACH TO IMPLEMENT LEAN CONCEPTS
IN SUPPLY CHAIN OF STEEL INDUSTRY.
Bachelor of Engineering
In
INDUSTRIAL ENGINEERING
By
Jatin Pradhan (46)
Lakshya Sarda(52)
Shubham Tiwari(72)
2
Shri Ramdeobaba College of Engineering and Management,
Nagpur
(An Autonomous Institute Affiliated to Rashtrasant Tukdoji Maharaj Nagpur
University Nagpur)
Department of Industrial Engineering
CERTIFICATE
Date:
Place:
DECLARATION
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I/We, hereby declare that the thesis titled “AN APPROACH TO
IMPLEMENT LEAN CONCEPTS IN SUPPLY CHAIN OF STEAL
INDUSTRY” submitted herein, has been carried out in the Department of
I n d u s t r i a l Engineering of Shri Ramdeobaba College of Engineering &
Management, Nagpur. The work is original and has not been submitted
earlier as a whole or part for the award of any degree / diploma
at this or any other institution / University.
Date: 20/05/2021
Place: Nagpur
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ACKNOWLEDGEMENTS
With immense pleasure and great respect, we take this opportunity to express deep sense of
gratitude to our project guide Dr. V. S. Deshpande and Co-guide Prof. Himanshu Shukla,
Department of Industrial Engineering, RCOEM, Nagpur, for their invaluable guidance,
inspiration, constant encouragement and motivation throughout the project work.
We would like to express our special gratitude and thanks to Dr. Rajesh Pande,
Principal, RCOEM, Nagpur, for his cooperation and encouragement.
Last but not least, we are very much thankful to our parents and friends who directly
or indirectly supported us at every stage to bring this project towards successful completion.
Projectee
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ABSTRACT
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TABLE OF CONTENTS
Certificate
Declaration
Approval Sheet
Acknowledgements
Abstract
Table of Contents
List of Figures
List of Tables
Chapter 1 INTRODUCTION
1.1.1 Definition
1.1.2 Objectives
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Chapter 4
LIST OF FIGURES
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Fig. 3.1.2
Fig. 3.1.3
Lean manufacturing tool(5S)
Fig. 3.1.4
Lean Manufacturing Strategies
Fig 3.1.5
Difference between lean and traditional manufacturing
Fig 3.1.6
Status of different lean strategies as per literature study
Fig 3.1.7
LIST OF TABLES
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CHAPTER 1
INTRODUCTION
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1.1 Lean Manufacturing
1.1.1. Definition
Lean production is a Japanese approach to management that focuses on cutting out waste,
whilst ensuring quality. This approach can be applied to all aspects of a business from
design, through production to distribution. Lean production aims to cut costs by making the
business more efficient and responsive to market needs. This approach sets out to cut out all
activities that do not add value to the production process, such as holding of stock repairing
faulty product and unnecessary movement of people and product around the plant.
1.1.2 Objectives
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Fig. 1.1
5)Sustain or Shitsuke: to instill self-discipline and make the process part of everyday
practice.
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Bottleneck Analysis
How many times have your projects gotten stuck somewhere between development and
delivery? Bottleneck analysis is a structured way of looking at the processes and workflows
for developing a product or service. Bottleneck analysis is also used to address both present
and future issues, by identifying and addressing operational and process challenges.
Just-in-Time (JIT)
Value stream mapping is a technique developed from Lean manufacturing. Organizations use
it to create a visual guide of all the components necessary to deliver a product or service with
the goal of analyzing and optimizing the entire process.
Value stream mapping is used in a variety of industries, including manufacturing, finance and
healthcare. This principle takes all the people, processes, information and inventory
necessary, and displays them in a flow chart in order to get an overview of the business.
Kaizen
Kaizen is a Japanese term meaning "change for the better" or "continuous improvement." It is
a Japanese business philosophy regarding the processes that continuously improve operations
and involve all employees. Kaizen sees improvement in productivity as a gradual and
methodical process.
The concept of kaizen encompasses a wide range of ideas. It involves making the work
environment more efficient and effective by creating a team atmosphere, improving everyday
procedures and making a job more fulfilling, less tiring, and safer.
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1) Transport- Moving products that are not actually required to perform the processing.
2) Inventory- All components, work in process, and finished product not being processed.
3) Motion- People or equipment moving or walking more than is required to perform the
processing.
4) Waiting- Waiting for the next production step, interruptions of production during shift
change.
6) Processing- Working on a product more than the actual requirement time is termed as over
processing.
7) Defects- Defects in the processed parts are termed as waste. Repairing the defective parts
or replacing the parts due to poor quality.
A supply chain is defined as the entire process of making and selling commercial goods,
including every stage from the supply of materials and the manufacture of the goods through
to their distribution and sale. Successfully managing supply chains is essential to any
company hoping to compete.
Inward Supply Chain include the movement of raw materials, finished goods, and supplies from a
manufacturer or other distribution channel to a fulfilment center, warehouse, or retail store depending
on the business model.
Outward Supply Chain are related to the movement of end products to the end user, often originating in a
distribution or fulfillment center and then delivered to its final destination.
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CHAPTER 2
COMPANY OVERVIEW
Ramsons Castings Pvt. Ltd. is a leading manufacturer of mild steel long products i.e. Billets,
Flats, Angles, Round Bars, Squares etc. The plant has 4 induction furnaces of 8MT capacity.
The plant has a daily production capacity 200MT and 2 Rolling Mills.
PLANT LAYOUT
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Fig 2.1
CHAPTER 3
LITERATURE REVIEW
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3.1 Detailed study of the research papers
Department of Industrial Engineering, Federal University of São Carlos, São Carlos, Brazil
This paper aimed to understand the capabilities that enables supply chain resilience.
And the major capabilities:
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Fig 3.1.1 -Capabilities of supply chain resilience
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2. Implementation of Lean Manufacturing Tools in Garment Industry
For any Company’s economy, the industry cost, production time, total quality management
and waste reduction have great impact. The investments consumed by the company by
eradicating non value added production work and time are very important. Focusing on these
points Lean Manufacturing tools, a Japanese strategy, is implemented in this work.
The bottleneck areas were identified through Value Stream Mapping (VSM) and were
eliminated by implementing line balancing and parallel working section.
OBJECTIVES
● The primary objective of the present study is to investigate the garment manufacturing
processes to identify the bottle-neck operations through lean diagnostic tools, preferably
value stream mapping (VSM).
PROBLEM STATEMENT
In India due to lower skill levels and traditional manufacturing systems, the garment
industries are able to achieve 50% to 60% productivity level.This project is done in an
apparel industry in Salem, Tamil Nadu, India. They are manufacturers of men formal and
casual shirts. The company has been facing problem with unbalanced productivity among
various operations in sewing department.
To understand the real bottle neck area, the operations analysis for cuff production line and
current state of value stream mapping are created and shown in Fig , respectively.
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Fig 3.1.2
The timing has been reduced to 50% by KAIZEN. Now all the operations in the cuff line are
under control and a smooth flow is achieved. The improved takt time details are shown in Fig
Fig 3.1.3
CONCLUSION
Thus an apparel industry was studied and the bottleneck areas were identified through
Value Stream Mapping (VSM).
The bottleneck areas were eliminated by implementing line balancing and parallel
working section. The implementation of kaizen resulted in reduction of cycle time by
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48.7%. The value added percentage got increased from 0.397% to 0.431% which
accounts for 8.5% improvement in the processes.
3. Supply Chain Integration and Supply Chain Performance: The Mediating Role of
Supply Chain Resilience
By-Arsalan Zahid Piprani and Suhana Mohezar(2020)
The objective of this study is to examine the influence of supply chain integration (SCI)
on supply chain resilience (SCRES) on supply chain performance (SCP) dimensions of
large – scale manufacturing firms in Pakistan.
It also examines the indirect effects of all the SCI dimensions on all the SCP dimensions
through the SCRES. A quantitative approach using questionnaire survey was employed to
examine the hypotheses and theoretical framework.
Data were collected from 182 manufacturing firms in Pakistan and the SMART PLS
version 3.2.7 was used for data analysis. The results showed that the SCI contributed
significantly to the SCRES while the SCRES impacted on the SCP substantially.
The findings of this study also highlight the need for manufacturing firms to not only
concentrate on investing in integration practices, but also to take note on how they
could improve their resiliency.
Resiliency allows the manufacturing firms to handle disruptions effectively, and to
continue to provide the expected services and products to customers.
Having said this, the resiliency capabilities can be promoted through intense
integration between different units in a firm and with supply chain partners.
The study employed the SEM (structural equation modeling) by using partial least squared
method for the assessment of the inter relationship among the different latent variables. This
helped to test the theoretical model which has been widely recognized and used in supply
chain risk management and resilience studies.
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4. Implementing of Lean Manufacturing Tool In Dairy Industry.
5S is the name of a workplace organization method that uses a list of five Japanese words:
seiri, seiton, seiso, seiketsu, and shitsuke. Transliterated or translated into English, they all
start with the letter "S". The list describes how to organize a work space for efficiency and
effectiveness by identifying and storing the items used, maintaining the area and items, and
sustaining the new order. The decision-making process usually comes from a dialogue about
standardization, which builds understanding among employees of how they should do the
work.
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STEPS TO ACHIEVE LEAN SYSTEMS
The following steps should be implemented to create the ideal lean manufacturing system:
Fewer inventories.
Increased productivity.
Analysis
This paper presents the review of lean thinking and its concept through definitions from
literature.
The main focus of lean manufacturing is to eliminate waste, doing things better in half of the
resources as mass production requires, providing higher quality.
Understanding the barriers is important for managers to avoid failures and to sustain lean
leap. The paper contributes by identifying enablers and barriers in implementing the lean
principles and practices.
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5.A Framework for Effective Implementation of Lean Production in Small and
Medium-sized Enterprises.
By-Fatima Ezzahra Touriki andEl Fezazi (2016)
Industrial Engineering Research Team, Higher School of Technology, Safi, Cadi Ayyad
University (Morocco)
Purpose: The present paper aims at developing an effective framework including all the
components required for implementing lean production properly in Small and Medium-sized
Enterprises.
Practical implications: Implementing rigorously the proposed framework will help small
companies’ managers to improve considerably their organization’s performance and benefits
from lean strategies' outcomes. Researchers and practitioners in small businesses now possess
an integral framework for successfully implementing lean strategies.
Analysis
This paper started with a claim that large companies worldwide were always the most
privileged to adopt many advanced enhancement approaches including lean
implementation and then enjoy advantages resulted by implementation of these
approaches in their organizations compared to SMEs.
The outcome was a more meaningful framework that groups all the requirements and
guidelines for lean implementation (implementation process, tools and success factors).
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6. An empirical review of lean manufacturing and their strategies
By-Virender Chahala and M.S. Narwalb (2017)
When lean manufacturing concept was developed the main question was that which strategies
will be more successive for this concept. After study literature, the result was in form of the
number of strategies which can be used here. So this lean concept becomes a flexible system
in which the strategies can be added, merged and be further explored as per requirement.
Some lean strategies are:
According to Forza (1996) and Chahal et al. (2013), lean manufacturing have more
advantages over traditional system. Some reasons are discussed below that why use lean
manufacturing as primary system:
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Fig 3.1.6
Analysis
It is accepted that lean manufacturing is the most profitable concept for both,
manufacturing industries as well as customers so lean team prepared by different
manufacturing industries.
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All lean strategies are important at their own levels but these all are not used in all
manufacturing environment. As the result of this research paper, lean manufacturing is
very much important in every area of innovation which provided lean manufacturing
strategies.
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CHAPTER 4
OUTLINE OF WORK
4.1 OBJECTIVE
After examining and analyzing the production and supply chain process of M.S Billets from
raw materials to finished products, we collected data of various processes and identified
wastes (of lean concepts) i.e
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Billets Data
Sr. Date of order Date of Time load at Time to reach
No. received dispatch factory(Hrs) Mumbai(Hrs)
1 4/30/2021 5/1/2021 1 48
2 4/30/2021 5/1/2021 1 47
3 5/1/2021 5/3/2021 1.5 48
4 5/3/2021 5/4/2021 1.2 48
5 5/3/2021 5/4/2021 1.5 44
6 5/4/2021 5/5/2021 1.5 47
7 5/6/2021 5/7/2021 1 48
8 5/6/2021 5/7/2021 1 48
9 5/6/2021 5/8/2021 1.1 55
10 5/7/2021 5/8/2021 1 54
11 5/8/2021 5/9/2021 1.2 48
12 5/9/2021 5/10/2021 1.3 46
13 5/10/2021 5/11/2021 1 47
14 5/11/2021 5/12/2021 1.5 48
15 5/14/2021 5/15/2021 1 48
16 5/15/2021 5/16/2021 1 47
17 5/16/2021 5/17/2021 1.5 47
18 5/16/2021 5/18/2021 1.1 49
Average= 1.188888889 48.16666667
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SPONGE IRON
Sr unloading
date of order placed date of truck arrived time taken by truck to arrive
no. time
1 30/04/2021 2/5/2021 45hrs 1hr 10min
2 30/04/2021 3/5/2021 50hrs 1hr 5min
3 30/04/2021 3/5/2021 56hrs 1hr 10min
4 1/5/2021 3/5/2021 39hrs 1hr
5 1/5/2021 4/5/2021 49hrs 1hr 15min
6 3/5/2021 6/5/2021 51hrs 1hr 20min
7 4/5/2021 6/5/2021 40hrs 4hr 30 min
8 6/5/2021 8/5/2021 32hrs 1hr 10min
9 7/5/2021 10/5/2021 57hrs 1hr 20min
10 7/5/2021 10/5/2021 52hrs 1hr 20min
11 8/5/2021 10/5/2021 50hrs 1hr 10min
12 11/5/2021 14/5/21 59hrs 1hr 05min
13 13/5/21 15/5/21 40hrs 1hr 05min
14 13/5/21 15/5/21 37hrs 1hr 05min
15 13/5/21 15/5/21 36hrs 5hr 10min
16 14/5/21 16/5/21 41hrs 1hr
17 14/5/21 16/5/21 42hrs 1hr
18 15/5/21 17/5/21 40hrs 1hr 25min
19 17/5/21 19/5/21 45hrs 1hr 30min
20 17/5/21 19/5/21 43hrs 4hr 40min
Scrap Data
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Sr. Date of order Scrap Time unload at Time to reach
No. given Received factory(Hrs) Factory(Hrs)
When
1 Available 5/1/2021 3 NA
When
2 Available 5/1/2021 3.5 NA
When
3 Available 5/2/2021 2.5 NA
When
4 Available 5/3/2021 4.5 NA
When
5 Available 5/4/2021 4 NA
When
6 Available 5/5/2021 2.5 NA
When
7 Available 5/6/2021 3 NA
When
8 Available 5/7/2021 3 NA
When
9 Available 5/8/2021 3 NA
When
10 Available 5/8/2021 3.5 NA
When
11 Available 5/9/2021 3 NA
When
12 Available 5/10/2021 3 NA
When
13 Available 5/11/2021 2.5 NA
When
14 Available 5/11/2021 3.5 NA
When
15 Available 5/15/2021 3 NA
When
16 Available 5/16/2021 3 NA
When
17 Available 5/17/2021 5 NA
When
18 Available 5/18/2021 3 NA
When
19 Available 5/19/2021 3.5 NA
When
20 Available 5/20/2021 4 NA
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4.3 OBSERVATIONS
1. Unloading is done by overhead cranes, forklifts and battery trolleys and is time taking for
more number of packages per truck.
2. System entry and documentation at the gate office is the major contributing factor to truck
turnaround time.
3. The deviation from the mean time taken at gate office is very high.
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