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 Management Decision
Managing industrial operations by lean thinking using value stream mapping and
six sigma in manufacturing unit: Case studies
Jagdeep Singh, Harwinder Singh, Amandeep Singh, Jashanpreet Singh,
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Jagdeep Singh, Harwinder Singh, Amandeep Singh, Jashanpreet Singh, (2019) "Managing industrial
operations by lean thinking using value stream mapping and six sigma in manufacturing unit: Case
studies", Management Decision, https://doi.org/10.1108/MD-04-2017-0332
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Managing
Managing industrial operations by industrial
lean thinking using value stream operations

mapping and six sigma in

manufacturing unit
Case studies Received 14 April 2017
Revised 16 April 2018
23 June 2018
Jagdeep Singh Accepted 22 January 2019
Department of Industrial and Production Engineering,
Dr B.R. Ambedkar National Institute of Technology,
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Jalandhar, India
Harwinder Singh
Department of Mechanical Engineering,
Guru Nanak Dev Engineering College, Ludhiana, India
Amandeep Singh
Department of Mechanical Engineering,
I.K. Gujral Punjab Technical University,
Kapurthala, India, and
Jashanpreet Singh
Department of Mechanical Engineering,
Guru Nanak Dev Engineering College, Ludhiana, India

Abstract
Purpose – The purpose of this paper is to cover the significance of lean thinking using value stream
mapping and six sigma methodology in managing industrial operations.
Design/methodology/approach – Lean manufacturing is an efficient approach for identifying and eliminating
waste through a continuous improvement via flow of the product/service at the pull of customer in chase of
exactness. This study has been carried out in a manufacturing unit of Northern India that was suffering from high
production lead time and work in progress (WIP) inventory.
Findings – The current state and future state maps for the critical product have been prepared.
On comparison of both current and future state maps, it was observed that lead time has been reduced by
14.88 percent, processing time by 14.71 percent and wastage of material movement by 37.97 percent. As
proposed in model, the WIP inventories have been reduced by 17.76 percent and workforce by 17.64 percent.
Further it would lead to the profit of Rs161,800 per annum. Six sigma projects have been carried out to reduce
rejections of the critical product P-19 under study. The total length of the product was undersize of the critical
product. Root cause analysis technique has been used through strategic DMAIC implementation. Results of
investigation demonstrated net savings of rupees 145,560 annually.
Originality/value – The paper demonstrates the practical application of lean thinking, showing how it can
bring real breakthroughs in saving cost in the manufacturing industry.
Keywords Waste, Lean thinking, WIP, Lead time
Paper type Case study

1. Introduction
Lean manufacturing (LM) may be defined as the application of techniques that are used to
reduce or eliminate the wastes (Wilson, 2009). It is more than one-dimensional approach and Management Decision
encompasses a large range of management practices including JIT, quality systems, teamwork, © Emerald Publishing Limited
0025-1747
cellular manufacturing, supplier management, etc., in an integrated manner. In today’s DOI 10.1108/MD-04-2017-0332
 MD marketplace, the organizations are facing many difficulties due to changing customer demands,
increasing dissimilarity in products and demands for world class quality. The changing
environment is forcing industrial units to focus upon customer satisfaction and to reduce the
lead time (Saraswat et al., 2015). In modern times, many organizations have tried to implement or
have already implemented LM tools/techniques/processes, whereas some have adopted the LM
principles in totality. According to the lean concept, excess inventory of raw materials, work in
progress (WIP) and finished products, over-production, waiting for equipment and human
resources, space occupied by unused machines and materials, unused creativity, frequent
warranty claims, etc., are considered as wastes (Doolen and Hacker, 2005). The lean principles
provide perfect quality to satisfy the customer’s demand and at the same time minimize the
non-value-adding activities.
LM is a comprehensive philosophy popularized over the last two decades. The success
story of Toyota shows the large gap that exists between Japanese and western automotive
sectors. These ideas were also adopted by USA in city California because of Japanese
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development, production and distribution of products with lesser human efforts, expense,
time, material consumption and investment (Nash et al., 2006). In times of global economic
crises, the survival and competitiveness of companies depend on their practices and adaptive
capacities in external environments, which are attributed to shifts in customer preferences,
government regulations, technology and competitors. This strategic alignment of internal
resources and requirements of external market provides not only survival but also
competitiveness (Soosay et al., 2016). As a result of implementation of LM principles, a number
of manufacturing industries across the world have cut down the costs of their products
in the manufacturing stage itself, which is a motivating factor for Indian manufacturing
units, as they have started to implement LM concepts in their organizations (Anand and
Kodali, 2008).
The manufacturing units under study were suffering from difficulties of different types
of wastes. As they have been employing conventional methods that eventually lead to an
increase in WIP inventories, production lead times have also increased, making the units
unable to meet customer’s demand in time. So in order to enhance the profitability, two LM
strategies, namely value stream mapping and six sigma, have been applied to reduce wastes
arising in industrial operations. Data collection before and after implementing lean
strategies has been analyzed at the shop floor level and also through simulation, and the
results are highly encouraging.
The rest of the paper is structured as follows. Section 2 presents the review of relevant
literature to concisely describe VSM and six sigma as lean tools for managing industrial
operations. The research findings of the case-1 are described, including current state map, takt
time calculation, proposed changes in current state map, future state map, simulation analysis,
comparison of current and future state maps and the role of VSM towards performance
improvement is justified in Section 3. The research findings of the case-2, including systematic
define–measure–analyze–improve–control (DMAIC) cycle implementation steps taken to
improve the problem, are described in Section 4. Finally, the paper concludes by summarizing
the key issues, implications and possibilities for future research in the case companies
under study.

2. Literature review
This section describes the literature describing the role of VSM, six sigma and integrated
approach of lean thinking towards managing industrial operations.

VSM – a tool for managing industrial operations

The most significant tool of LM is value stream mapping. The technique was developed in
1995 and it helps the researcher and practitioners to identify and remove the waste
 through value stream (Hines and Rich, 1997). VSM is the process in which the visual Managing
mapping of the flow of product is done, which would be best suited in future references industrial
that go hand in hand with performance and methodology (Singh and Sharma, 2009; operations
Gohane et al., 2014). VSM shows all the activities from supply of raw material to final
product while using different processing steps. It brings all the processing steps at one
single place, providing a bigger picture of the shop floor and improving shop areas and the
production line. It is simply transferring information about the value stream to a “map”
that represents either current or future state of the manufacturing system. As the term
implies, a “current state map” shows how materials and information flow through
processes in the current production system. The value stream consists of all the materials
and information required in the manufacturing of a particular product and how they flow
through the manufacturing system (Chen et al., 2010). McDonald et al. (2002) described the
application of VSM in a high variety low-volume organization, although they did not
explicitly state that the case organizations operate under a batch environment. They also
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did not take into consideration time and temperature dimensions. Dhandapani et al. (2004)
presented a case study of a steel company and demonstrated the construction of current
state and future state VSMs and explained that per annum production costs can be
reduced by 8 percent of turnover, whereas capital equivalent to 3.5 percent of turnover can
be released through the reduction of inventory. Lacerda et al. (2016) conducted a case
study that describes the use of a lean tool, namely value stream mapping in the production
process of automotive parts for a major automotive company. At the beginning of the
project, relevant data from the process were collected and analyzed. Subsequently, the
initial process was mapped, the related wastes were identified, and then future processes
were mapped and financial results were estimated. Consequently, the cycle time and the
level of the workforce were reduced, the process was improved and savings were obtained.
Yuvamitra et al. (2017) performed a case study in rope manufacturing company. A current
state value stream map was created, and the possible improvements were suggested. The
implemented results were shown in the form of future state map. The results showed that,
after waste elimination and structural revision, a manufacturing process became more
efficient, enabling the customer to receive an order significantly faster. Implementing
changes in both the information flow system and the material flow system would save an
estimated 75 percent for the manufacturing time of the rope. In other words, the suggested
changes would reduce the time that was taken for manufacturing the rope and the order
would be shipped from 36 days to 9 total days.

Six sigma – a tool for managing industrial operations

Al-Aomar and Youssef (2006) described an approach for achieving six sigma rating in
critical-to-quality criteria measured through a system discrete-event simulation (DES)
model. DES provides a flexible platform for applying DMAIC analyses as well as LM
techniques. LM techniques are utilized at the improve (I) phase of DMAIC to reduce
manufacturing lead time. An example of a simple manufacturing process is used to clarify
the application of the proposed approach. Results showed that although achieving six
sigma rating may not be always practically attainable at the system level, still significant
relative improvement can be achieved. Cheng (2007) displayed the relationship between
the factors in a preliminary exploratory framework and their associated equations in a
quality performance model for Taiwanese companies. The results of the study are
primarily based on statistical package for the social sciences (SPSS) analysis that showed
that organizational culture is the most important factor to enhance business performance
when integrating six sigma with their business strategies. Hu et al. (2005) explained
that fundamental objective of six sigma is to achieve customer satisfaction with the
continuous improvement in quality. Process control and manufacturing variation
 MD reduction are important, but companies often discover that the majority of their quality
problems were actually created during the design process. An example of improving
manufacturing process capability to give bottom line cost savings and customer
satisfaction is presented. The methodology to increase system robustness through design
for six sigma is also provided and demonstrated through the extension of the case study
of crankshaft journal lobing design robustness improvements. Al-Refaie and Al-
Hmaideen (2015) implemented six sigma approach DMAIC to improve the performance of
direct compression process with two quality responses, including tablet’s weight and
hardness. During define phase, the x-bar and s-charts are plotted and judged for in-control
responses. To measure performance, the values of the actual capability indices for
hardness and weight are estimated as 1.5 and 0.587, respectively, which indicate that the
tableting process is capable for tablet’s hardness but it is incapable for weight. During the
analyze and improve phases, designed experiments utilizing the Taguchi’s L27 array
followed by the gray relational analysis technique are implemented to determine the
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combination of factor levels that enhance process performance. Tiwari et al. (2016)
implemented six sigma methodology in Indian foundry industry. The DMAIC approach
has been followed to reduce the rejection rate in the green sand casting process. In
addition, response surface methodology was employed in “improve phase” to develop
an empirical model that correlates the casting process variables with the desired
quality characteristics. The developed model is further utilized to optimize the process
parameters for minimizing the casting rejection. The results showed that after the
implementation of six sigma, the rejection rate was reduced by 25.44 percent. Ismail et al.
(2017) reported a work improvement project in Kolej Kemahiran Tinggi MARA Kuantan.
It involves problem identification in production of “Khufi” product and proposing
an effective framework to improve the current situation effectively. Based on the
observation and data collection on the WIP product, the major problem related to function
of the product, the parts cannot assemble properly as the dimension of the product
is out of specification, has been identified. Finally, the root cause and solution for the
production of “Khufi” problem have been identified and implemented and the result for
this product is then successfully followed by the specification of fitting. Venkatesh
and Sumangala (2018) have presented the results based on the analysis of collective
opinion of employees of various Indian manufacturing industries that have implemented
six sigma. This research examines interrelationship among various parameters defined in
the research. The research revealed that industries are benefited, irrespective of their
nature in terms of their growth, financial benefits, productivity and satisfaction of the
customer. However, peoples’ equity, which deals with the benefits that employees obtain
after six sigma implementation, is not certain. The research also revealed the existence
of strong interrelationship among various parameters used to measure the success of
six sigma.

Lean manufacturing – an integrated tool for managing industrial operations

Serrano et al. (2008) utilized multiple case study methodology in six industrial units to
evaluate the real applicability of LM to redesign disconnected flow lines based on
manufacturing environments with a diversity of logistical problems. Lean continuous flow
that can satisfy both the conditions of high service level, as well as low inventory cost can be
solved by a combination of multiple attribute decision-making and lean manufacturing
(Yang and Lu, 2011). Hines and Rich (1997) proposed seven more tools that can be used in
conjunction with VSM for mapping the inter-company and intra-company value-adding
processes. They noted that it is only these value-adding processes that make the final
product or service more valuable to the end customer than otherwise it would have been.
Detty and Yingling (2000) used the simulation to assist in the decision of implementing LM
 principles at an existing assembly operation. They developed the models for the existing Managing
assembly system as well as for a new system (of similar capacity), which employs the LM industrial
principles. In addition to the manufacturing processes, they also included the associated operations
warehousing, inventory management; transportation and production control/scheduling
systems in the model to enable the quantification of LM impact on the total system. Satolo
et al. (2017) conducted case studies in companies of different branches in the agribusiness
sector to analyze the degree of adherence to lean production system, considering the use of
techniques and tools, and the specificities of the agribusiness system work. While
comparing the degree of adherence to lean production with the use of techniques and tools, it
was observed that there is no direct relationship, indicating that organizations should
select only the techniques and tools that will improve their own organizational performance.
At last, the specific characteristics of seasonality of consumption, quality and health
surveillance and sociological aspects of the food have high influence on surveyed
agribusiness systems, and its effects can be minimized by the techniques and tools
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associated with lean production system. Singh and Sharma (2009) defined that LM uses
several tools and techniques, like VSM, 5S, Kaizen, total quality management, Kanban, total
preventive maintenance, poka yoke, etc., to identify and remove the waste from any
procedures and it helps managers to understand the current operational conditions and to
recognize improvement opportunities for improving the operational performance. Pacheco
et al. (2015) presented a conceptual comparative analysis of LM and six sigma, highlighting
18 critical aspects between such approaches and their respective implications for
management decision-making. The main points of divergence between lean and six sigma
have been highlighted. In all, 17 criteria are proposed as a result of a review of the literature
and one criterion, and “quality control,” is suggested by the authors. The authors have
analyzed the features of LM and six sigma to be learnt from organizational change and
productivity improvement efforts. The results pointed out three specific observations: first,
both approaches are predominantly complementary; second, it is possible to create a single
model, integrating both approaches studied in this research; and third, when LM is
implemented as stand-alone approach, it falls short of specific tools to leverage its full
potential according to the complexity of the problem under consideration. Wyrwicka and
Mrugalska (2017) carried out case study in a large polish factory that showed that in spite of
high assessment of the level of implementation of particular lean tools, the expected effects
of waste elimination did not appear. When comparing the results received from the analysis
of assumed effects of waste elimination in the factory and the percentage level of
implementation of particular tools, it was noticed that the degree of implementation does
not influence the elimination of particular types of waste. Hiremath et al. (2018) have
concentrated mainly on the procedures to identify and to reduce the different types of
wastes in a production process. Initially, the data related to types of waste and their
classification according lean techniques were analyzed and implemented on a production
process. The data were recorded for a whole month before implementation and for a whole
month after implementation. Later the influence of the lean techniques was analyzed on two
different sections of waste, for 5 percent significance value using paired t-test. It has been
found that there is a positive impact of lean techniques on some areas of production flow.
Tortorella and Fettermann (2018) have proposed an instrument for assessing the
relationships between the critical success factors (CSFs) that promote help chain, providing
means to enhance an overall equipment effectiveness (OEE) and quality performance in
companies undergoing a lean implementation. The aforementioned relationships were
determined and validated through a survey carried out with 50 Brazilian manufacturers.
The results of this paper show that the size of the company and CSFs have a significant
relationship with quality. However, for OEE, time of lean implementation seems to be
significantly important to predict its performance.
 MD 3. Methodology adopted
In the present study, multiple case studies have been performed in medium-scale
organizations selected on the basis of convenient sampling technique. Snow Ball sampling
followed by invited visits has been done to collect the data. The critical product has been
identified and root cause analysis has been done through implementation of LM
strategies. Data collection before and after implementing LM strategies has been
performed and consequently conclusions are drawn. Figure 1 shows the methodology
adopted the research.

4. Case Study I
Introduction to the Case Industry 1 and identification of critical product
The case study has been carried in a leading food product manufacturing unit,
located near Ludhiana, Punjab, India, using VSM, having an annual turnover of
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approximately Rs15m ($0.23m). This organization was started in 2001 and is an ISO-
certified company. The company employs 400 personnel including workers, supervisors,
engineers and managers. The organization was not being able to complete the customer’s
demand, because a lot of time was being wasted in the manufacturing of pillar
rod (one of the most essential part of juicer machine). The problems faced by the
organization were:
• improper layout of the organization;
• unnecessary movement of material from one place to another, which in turn led to the
wastage of time as well as human effort; and
• production lead time and WIP inventory were objectionably high.
The organization was manufacturing all types of commercial and domestic food processing
products. However, the most valuable product of the organization was pressure type juicer
machine. Pillar rod is an important part of juicer machine, which was selected on the basis of
excessive wastage of time in manufacturing as compared to other parts.

Selection of Companies

Case Study 1 Case Study 2

Identification of critical areas in the case companies

Implementation of LM tools

Data collection before and after implementing LM tools

Figure 1.
Methodology adopted
for the research Results and Conclusions
 The products had to be delivered to customer within 35 days (by truck) and 43 days (by sea) Managing
after receiving the order from the customer. The length of pillar rod was 400 mm and its industrial
respective diameter was 30 mm (Figure 2). operations
Calculation of takt time of operations
In this study, the data collection was done for time study, workforce and material movement of
all processes of pillar rod. The cycle time was noted for every operation, and the time study of
product movement from one workstation to another was performed. The information was
collected using a stop watch with a random sampling method. In manufacturing of pillar rod,
the various operations include cutting, turning, drilling, tapping, grinding, assembly and
packaging. Table I shows the information about the cycle time of every operation and workforce
involved to complete these operations.
The study was restricted to material handling function only. The in-process movement of
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the product was done by the workforce. The total distance moved by the product for the
manufacturing of pillar rod was 39.5 meters and four workers were involved (Figure 2)
(Table II).

20

18

16

14
Lead time in days

12

10

2
Figure 2.
0 Comparison of lead
Funnel Handle Cap Lock Strainer Base Head Pillar Rod time of juicer
CUP machine’s components
Components of juicer m/c

S.No. Operations Cycle time (in second) Number of workers

1 Cutting 154 2
2 Turning 70 1
3 Drilling 25 1
4 Tapping 20 1
5 Grinding 70 2
6 Assembly 12 2 Table I.
7 Packaging 125 4 Cycle time
Total 476 13 study and workforce
 MD Takt time is the pace of production that aligns production with customer demand, i.e., it is
how fast you need to manufacture a product in order to fill the customer demand in time.
In the present case, the following specification are used:
• Demand ¼ 5,000 pieces per month.
• Working days per month ¼ 25 (Gazetted holidays and Sundays excluded).
• Number of shifts per day ¼ 1.
• Working hours per day ¼ 8 h (9.00 a.m. to 5.00 p.m.).
• Available time per day ¼ 480 min.
• Net working time per day ¼ 480 − 40 ¼ 440 min (excluding 30 min. lunch break and
10 min. tea break).
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• Total working time per day ¼ 440×60 ¼ 26,400 s.

• Takt time ¼ Total working time per day/Customer demand per day ¼ 26,400/200 ¼ 132 s.
Figure 3 shows cycle time of current state at different workstations. This figure shows that
the cycle time of one operation (i.e. cutting) is above the takt time.

S.No From To Distance (in meters) Number of workers

1 Raw material storage Cutting 0 1

2 Cutting Turning 5.5
3 Turning Drilling 14 1
4 Drilling Tapping 0
Table II. 5 Tapping Grinding 8 1
Current distance 6 Grinding Assembly 3
traveled by 7 Assemble Packaging 1 1
material and 8 Packaging Storage 8
workforce required Total 39.5 4

TAKT time =132 s

180

160

140
Cycle Time in second

120

100

80

60

40

Figure 3. 20
Current state
0
processing time at
Cutting Turning Drilling Tapping Grinding Assembly Packaging
different workstations
Operations
 Current state map Managing
Current state map has been prepared by taking the data from the selected department and also industrial
by consulting the workers, foreman, etc. The order comes from the customer to marketing operations
department of the organization. After forecasting the exact demand, the marketing department
sends the forecast information to the production planning and control department and the
material requirements planning department.
The material follows a number of operations to get transformed from raw material to finished
product, namely cutting, turning, drilling, tapping, grinding, assemble and packaging. WIP
inventory between the operations is shown using the triangle symbol. The timeline shows the
lead time (in days) at the top and processing time (in second) at the bottom of value stream map.
VSM is purely a pencil and paper work, which shows the flow of the product. The major
steps involved in mapping are as follows:
• An A3 size (12×17 inches) paper is taken and icons are drawn representing customer;
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marketing department and supplier are being displayed with enough gap.
• All the entries are done to make a record of monthly/daily requirements of each
product along with the amount of containers.
• Dispatching and receiving data are shown with the truck using direction arrow for
movement of material.
• The bottom of the map is being displayed with the manufactured/assembly operations
with the upstream operation on the left side and downstream operation on the right side.
• WIP inventory between the processes has been symbolized with triangles.
Figure 4 shows the current state map of pillar rod and Figure 5 presents the layout of
the organization.

Annual
Forecast

Marketing
Supplier Monthly
Department Customer
Order

Monthly
Order Daily
Requirement

Weekly PPC
Order Department

MRP
3 Days
For
Raw Material

G A
P
D T R S
C T A
R A I S
U U C
I P N E
T R K
L P D M
T N I
L I I B
I I N
585 310 I N N 465 L 497
N 450 N 325 420 E
G
N G G
G G
G

Production
Lead Time CT =154 s CT = 70 s CT = 25 s CT = 20 s CT = 70 s CT =10 s CT =125 s
18.28 day uptime =100% uptime =100% uptime =100% uptime =100% uptime =100% uptime =100% uptime =100%
Availability = 26,400 Availability = 26,400 Availability = 26,400 Availability = 26,400 Availability = 26,400 Availability = 26,400 Availability = 26,400

=2 =1 =1 =1 =2 =2 =4
Processing Time
476 s
2.93 day 2.25 day 1.55 day 1.63 day 2.1 day 2.33 day 2.49 day
Figure 4.
Current state
map of pillar rod
154 s 70 s 25 s 20 s 70 s 10 s 125 s
 MD Analysis of current state map
After studying the current state map, it was noted that the production lead time was very
high, i.e., 18.28 days. WIP inventory was also objectionably high, i.e., 3,052 number tied up in
between the processes. It was further noticed:
• There was a considerable waste of time in movement of material from turning
process to drilling process. The distance between both the processes was 14 m and it
was covered in 1.30 min physically by a worker.
• Total processing time was 476 s.
• 17 workers were being employed.
• There was one process (i.e. cutting) having processing time more than the takt time.
The reasons spotted behind the wastages are: the lack of communication between the
operator and supervisor; negligence of workers; variety of product mix being manufactured.
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All the above-mentioned operations need a keen observation along with those operations
of pillar rod production to carry out a sincere effort to prevent the waste. Table III depicts

L L L L L L L L L L G P

Washing

Stairs
Power Milling Milling Milling Luster
Drill

Shaper Process G1 G2 Tapping

1 2 3

Reamer
Power
FINISHED
Hacksaw
Lift Scrap RAW MATERIAL
PRODUCTS

Assembly Table
CNC CNC CNC Cabin
RAW MATERIAL

Grinding
Air

Gear
m/c

CNC Filling Drilling Tapping Reaming

Grinding

Drilling Milling Turning Tapping Grinding

CNC VMC

Main Office Reception Design Department

Figure 5.
Present layout of the
organization PRESENT LAYOUT
MAIN GATE

Operations Cycle time (in second) WIP inventory (nos) Lead time (in days)

Material arrangement 0 0 03.00

Cutting 154 585 02.93
Turning 70 450 02.25
Drilling 25 310 01.55
Tapping 20 325 01.63
Grinding 70 420 02.10
Table III. Assemble 12 465 02.33
Analysis of current Packaging 125 497 02.49
state map of pillar rod Total 476 3,052 18.28
 the current state map of pillar rod operations, showing cycle time (in second), WIP inventory Managing
and lead time (in days). industrial
operations
Simulation analysis using flexsim software
Flexsim simulation software is an object software environment used to develop, model,
simulate, visualize and monitor dynamic flow process activities and systems. Flexsim is a
complete suite of development tools to develop and compile simulation applications (Kumar
and Narayan, 2015). The data collected during the development of current state VSM have
been used for developing the simulation model (using flexsim software).

Proposed changes for future state map

Some of the alterations suggested for future state map are as follows.
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Cutting operation. Cutting of pillar rod was done with power hacksaw machine. It takes
154 s of cycle time having as summarized below:
• Product loading time ¼ 6 s.
• Cutting period ¼ 145 s. (value-addition time)
• Product unloading time ¼ 3 s.
Since the value-addition time was very high, so the main consideration was to reduce this
time as the operation was being performed by using power hacksaw machine. However, if
the organization used metal cutting band saw machine, then it would lead to the reduction of
value-addition time. Moreover, cost saving could also be achieved by using machine.
Movement of material. The distance traveled by the material from turning station to
drilling station was 14 m and this distance was covered in 90 s by the worker. It led to the
wastage of time, workforce, and hence was affecting productivity. The movement of
material was adding extra time to the standard time of the operations.
By allocating the new respective position of the machines (i.e. drilling and tapping), the
mentioned wastes could be reduced. Moreover, the movement of material might not have
required any worker. This resulted in saving manpower and hence brought down the cost of
the producing product (Figure 6).
Packing department. The packing operation was accomplished in four steps by four
workers with their own respective operations. The operations performed are as follows:
(1) lifting and hanging over the juicer machine;
(2) covering the juicer machine in polyethylene pack one after the other;
(3) placing the covered juicer machine in the container; and
(4) sealing the container.
On careful observations, it was found that second and third operations could be clubbed
together in order to reduce the number of operations, time consumed and the manpower.

Future state map

Few alternations were done in the current state map and consequently a future state map
was developed. All the changes, as discussed in previous section, were incorporated in the
future state map. The future state map looked entirely different from the current state map.
The salient features of the future state map were as follows:
• by allocating the new positions of the machines (i.e. drilling and tapping), the
movement of material got reduced from 14 m to 1 m;
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MD

Figure 6.

of the operations
Simulation model of
the current state map
 • manpower was reduced from 17 to 14; Managing
• operating time was reduced from 476 s to 406 s; industrial
• WIP got reduced from 3,052 to 2,510; operations
• lead time was reduced from 18.28 days to 15.56 days; and
• labor productivity got increased by 5 percent.
Figure 7 shows cycle time of future state at different workstations. This figure shows the
cycle time of all operations as well as takt time.
The analysis of current state map helped to identify wastes such as path distance
between the workstations and extra labor applied, as the current layout was not a line
assembly and was restricted to certain parameters. The new layout reduces the path
between the workstations and manpower to a considerable extent, i.e., reduction of the
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distance between workstation by 24.5 meter and workforce is reduced from four to three.
This results in elimination of waste due to motion and transportation.
Table IV depicts the future state map of pillar rod operations, showing distance traveled
by material (in meters) and workforce required. Figure 8 presents future state map of pillar
rod in light of changes implemented. Figure 9 gives a modified layout of the organization.

Comparison of current and future state

Table V shows the comparison between the current state map and future state map of the
pillar rod.

TAKT time =132 s

140

120

100
Cycle time in second

80

60

40

20

Figure 7.
0
Future state
processing time at
Cutting Turning Drilling Tapping Grinding Assembly Packaging
different workstations
Operations
 MD The comparison between the current state and future state shows that the cycle time of the
pillar rod was reduced by 14.71 percent, production lead time was reduced by 14.88 percent,
WIP inventory was reduced by 17,76 percent, workforce was also reduced by 17.64 percent and
total movement of material from one place to another was reduced by 37.97 percent. Figure 10
shows the comparison of all operations that are used in the manufacturing of pillar rod.
Table VI shows the comparison between the current and future states of distance
traveled by material from one workstation to other workstation and workforce required for
material handling (Figure 11).

Results and discussion

This section describes time taken by cutting operation, distance moved by material and
packing steps of current and future state map.
Cutting operation. Earlier cutting operation was done by two workers and this operation
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was done by power hacksaw machine. The main drawback of this process was that the

S.No. From To Distance (in meters) Workers

1 Raw material storage Cutting 0 0

2 Cutting Turning 5.5 1
3 Turning Drilling 1 0
4 Drilling Tapping 0 0
Table IV. 5 Tapping Grinding 6 1
Future distance 6 Grinding Assembly 3 0
travelled by 7 Assemble Packaging 1 0
material and 8 Packaging Storage 8 1
workforce required Total 24.5 3

Annual
Forecast

Marketing
Supplier Monthly
Department Customer
Order

Monthly
Order Daily
Requirement

Weekly PPC
Order Department

MRP
3 Days
For
Raw Material

D G A P
C T T R S A
R
U U A I S C
I
T R P N E K
L
T N P D M I
L
I I I I B N
200 450 310 I 325 420 465 340
N N N N L G
N
G G G G E
G

Production
Lead Time
CT =154 s CT = 70 s CT = 25 s CT = 20 s CT =70 s CT =10 s CT =125 s
uptime =100% uptime =100% uptime =100% uptime =100% uptime =100% uptime =100% uptime =100%
15.56 day
Availability = 26,400 Availability = 26,400 Availability = 26,400 Availability = 26,400 Availability = 26,400 Availability = 26,400 Availability = 26,400

Processing Time =2 =1 =1 =1 =2 =2 =4
Figure 8. 406 s
1 day 2.25 day 1.55 day 1.63 day 2.1 day 2.33 day 1.7 day
Future state
map of pillar rod
84 s 70 s 25 s 20 s 70 s 10 s 125 s
 Managing
L L L L L L L L L L G P industrial
Washing
operations
Stairs
Power Milling Milling Milling Gear Luster
Shaper G1 G2
Process 1 2 3 m/c

Reamer
Power
FINISHED
Hacksaw
Lift Scrap RAW MATERIAL
PRODUCTS

Assembly Table
CNC CNC CNC
Cabin
RAW MATERIAL

Grinding
Air

Drill
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CNC Filling Drilling Tapping Reaming

Tapping

Tapping
Drilling Milling Turning Tapping Grinding

CNC VMC

Main Office Reception Design Department

Figuree 9.
Modified layout of the
MODIFIED LAYOUT organization
MAIN GATE

S.No. Performance Current state Future state Reduction (in %)

1 Cycle time 476 s 406 s 14.71

2 Production lead time 18.28 days 15.56 days 14.88 Table V.
3 Work in process inventory 3,052 2,510 17.76 Comparison between
4 Workforce (operator + process shifter) 17 14 17.64 the current state
5 Movement of material (distance) 39.5 m 24.5 m 37.97 and future state

value-added time was quite high and the main aim was to reduce this value-added time. The
introduction of metal cutting band saw machine led to the reduction in value-added time.
Table VII given below shows the difference between current state and future state of cutting
operation that includes value-added and non-value-added activities. Value-added time is
defined as the time required to provide actual value to the product, whereas non-value-
added time is defined as the time that does not enhance any value of the product.
Table VII shows that the value-added time has been decreased by 42.06 percent with the
use of metal cutting band saw machine. Loading and unloading time remain unaltered. The
ultimate results of using metal cutting band saw machine are given below:
• A single skilled worker could operate this machine instead of two unskilled workers.
• The final processing time of operation was 93 s in place of 154 s.
Movement of material. The distance traveled by the material from turning station to drilling
station was 14 m and this distance was covered in 1.30 m physically by a worker. It led to
the wastage of time, workforce and useless movement of material.
 MD 180
Current

160 Future

140

120
Cycle time in second

100
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80

60

40

20
Figure 10.
Comparison between
the operations of 0
current and
Cutting Turning Drilling Tapping Grinding Assembly Packaging
future state
Operations

Distance (in meters) Workers

S.No. From To Current Future Current Future

1 Raw material storage Cutting 0 0 0 0

2 Cutting Turning 5.5 5.5 1 1
3 Turning Drilling 14 1 1 0
4 Drilling Tapping 0 0 0 0
Table VI. 5 Tapping Grinding 8 6 1 1
Comparison between 6 Grinding Assembly 3 3 0 0
current and future 7 Assemble Packaging 1 1 0 0
distance and 8 Packaging Storage 8 8 1 1
workforce required Total 39.5 24.5 4 3

By allocating the new respective position of the machines (i.e. drilling and tapping), the
above-mentioned wastages were reduced. Moreover, the movement of material would not
need any kind of worker (Table VIII).
Packing department. This process was also categorized under the takt time and it was
also taken into consideration for the changes. It was reckoned that generating any kind of
waste with context to working time and workforce has to be reduced.
Current packing process. Initially, packing operation was accomplished under four steps
by four individual workers with their own respective operations. Figure 12 shows the
present packing process of juicer machine.
 Managing
industrial
operations
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Figure 11.
Simulation model of
the future state map
of the operations
 MD Future packing process. On careful observations, we found that second and third operations
could be merged together into a single one and it could be performed by even a single
worker in place of two workers. As a result, only three workers were needed to complete the
process and the steps of operations were also decreased from four to three. Hence, the
worker would also not have to suffer from any kind of fatigue with the implementation of
this new step (Figure 13).

Results discussion of simulation run of model

It should be understood here that the simulation results are obtained with necessary
assumptions. In the case of actual situation, the shop floor is quite dynamic and uncertain.
Even though VSM can resolve the above issue to some extent, it suffers from various
shortcomings. Hence, researchers used simulation analysis in conjunction with VSM. The
future state model was made to run with shorter distances between various machines and
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results were compared. The validation of manual results with simulation results is
presented in Table IX.

CUTTING OPERATION
Operations Current state (in second) Future state (in second) Reduction (in %)
Table VII.
Comparison between Product loaded 6 6 No change
current state and Cutting period 145 84 42.06
future state of Unloading product 3 3 No change
cutting operation Total 154 93

Table VIII. Elements Current state Future state Reduction (in %)

Comparison between
current and future Distance (in meter) 14 1 92.85
state of Time (in minute) 1.30 0 100
material’s movement Workforce 1 0 100

1 1 1 1

Covering the
Figure 12. Lifting and Placing the
juicer machine
Current packing hanging over covered juicer Sealing the
in polythene
processes of the juicer machine in the container
pack one after
juicer machine machine container
the other

1 1 1

Covering the juicer machine

Lifting and in polythene pack one after
hanging over Sealing the
Figure 13. the other and placing the
Future packing the juicer container
covered juicer machine in the
processes of machine container
juicer machine
 Before implementing this LM tool, it was decided to simulate the manufacturing area by Managing
incorporating necessary changes in the current state simulation model. All the assumptions industrial
made for the simulation of current state map hold good for future state map except that the operations
inventory is scaled down by a factor of 20 for the ease of simulation. The little error between
manual cycle time and Flexsim cycle time is attributed to the following facts:
• The distribution entered into the simulation software generates random numbers,
which are unable to match the actual working condition.
• Little run time error in the first stage of operations will lead to an error in whole of the
operation as it follows distribution.
The results demonstrated that the flexsim output is in consistence with the manual output,
so future state VSM map is correctly interpreted.
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AHP for justifying the role of VSM towards performance improvement

Formation of hierarchy Five contributors are assessed for their contribution towards
performance improvement using analytical hierarchy process (AHP). Three (3) level
hierarchy has been prepared and assessed using standard procedure of AHP. Figure 14
shows the three-level hierarchy for measuring the contributors.
Degree of preference. The intensity of importance has been measured from 9 point scale,
starting from equally important to extremely most important. The responses are obtained
on this predetermined scale, which further is translated into priority weight in the next step.
Pair-wise comparison of different sub-objectives. The importance of ith sub-objective
compared to jth sub-objectives is calculated. The pair-wise comparison matrix for the sub-
objectives is shown in Table X.

Operation Manual (cycle time) Flexsim (cycle time)

Cutting 154 154.27

Turning 70 71.04
Drilling 25 24.57 Table IX.
Tapping 20 19.92 Comparison of manual
Grinding 70 69.86 cycle time with
Assemble 12 11.64 Flexsim output
Packaging 125 125.6 cycle time

VSM

Takt WIP
Set up Cycle time Lead Time
Time inventory
time (ST) (CT) (LT)
(TT) (WIP)
Figure 14.
Three-level hierarchy
for measuring the role
of VSM towards
Performance Performance performance
not improved improved parameters
 MD Thus, the approximate priority weight (W1, W2, Wj) for each attribute is obtained as shown
in Table XI:
X
n
W j ¼ 1=n  aij :
i¼1

Consistency check. In consistency check, eigenvalues are verified:

A  W i ¼ lmax  W i i ¼ 1; 2; . . .; n;
where A represents the pair-wise comparison decision matrix and λmax gives the highest
eigenvalue. Then consistency index (CI), which measures the inconsistencies of pair-wise
comparisons, is calculated as:
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ðlmax nÞ
CI ¼ :
ðn1Þ

The last ratio that has to be calculated is CR. Generally, if CR is less than 0.1, the judgments
are consistent and acceptable. The formulation of CR is:
CI
CR ¼ ;
RI
where random index (RI) denotes the average RI with the value obtained by different orders
of the pair-wise comparison matrices. The values of consistency test are given in Table XII.
Priority weights for alternatives with respect to attribute. The contribution of different
barriers towards inflexibility has been measured from the preference of the alternatives with

ST CT TT WIP LT

ST 1 3.45 1.716 2.2 5

CT 0.343 1 3.5 2.616 1.466
Table X. TT 0.518 0.47 1 1.56 1.688
Pair-wise comparison WIP 0.51 0.431 0.388 1 2.566
of different LT 0.24 0.736 0.526 0.325 1
sub-objectives Total 2.611 6.087 7.13 7.701 11.72

ST CT TT WIP LT Weight

ST 0.383 0.567 0.241 0.286 0.426 0.381

CT 0.1313 0.164 0.491 0.339 0.125 0.250
Table XI. TT 0.198 0.115 0.140 0.203 0.144 0.16
Normalized matrix WIP 0.195 0.071 0.054 0.129 0.219 0.121
of sub-objectives LT 0.092 0.121 0.073 0.042 0.085 0.0826

Maximum eigenvalue CI RI CR
Table XII.
Consistency test 9.808 0.1335 1.53 0.087
 respect to an attribute. Table XIII summarizes the result of evaluating the possible outcome Managing
of the implementation with respect to each attribute. industrial
The decision index is calculated by multiplying priority weight by attribute weight and operations
by taking summation of all attributes:

Decision Index of Inflexibility ¼ 10:266  0:381þ0:221  0:250þ 0:372  0:1672

þ0:270  0:16 þ0:422  0:0826 ¼ 0:71:

The VSM contributes towards improving performance by 71 percent.

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Result discussion of the findings

The results of investigation suggested that value-added time has been reduced from
turning to drilling operation and tapping to grinding, which result in saving of cost
associated with the workforce. Initially, cycle time of the cutting operation was more than
the takt time, which indicates that the process needs stabilization. The cutting period was
significantly reduced by 42.06 percent, which results in net savings of value-added time
that was causing time addition to the standard time. The operations, including covering of
juicer machine in polythene pack one after the other and placing covered juicer machine in
the container, are clubbed with each other, which results in net savings of the manpower.
The unnecessary movement of operator was reduced in future state map. Simulation
analysis helped to predict optimum values of cycle time and validation of current and
future state VSM map, and it shows consistency with VSM. The different types of waste
including waste due to transportation, inventory waste, waste due to motion and waste
due to waiting are targeted in this study. Table XIV shows the results obtained after
modifications in the current state map.
Moreover, AHP suggests that VSM contributes about 71 percent towards performance
improvement.

Not improved Improved Priority weight

ST
Not improved 1 0.314 0.266
Improved 3.4 1 0.734
CT
Not improved 1 0.285 0.221
Improved 3.62 1 0.779
TT
Not improved 1 0.59 0.372
Improved 1.69 1 0.628
WIP
Not improved 1 0.36 0.270
Improved 2.616 1 0.730
LT
Not improved 1 0.732 0.422 Table XIII.
Improved 1.376 1 0.578 Decision index table
 MD 5. Case Study 2
Introduction to the industry and problem formulation
XYZ Company is one of the premier units of Hero Group of Companies located in Northern
India and established in year 1971. The company is engaged in manufacturing and
supplying of auto parts to M/S Hero Moto Corporation Ltd, located in Mohali, Punjab and
stores located in three cities of Punjab. The wide range of products consists of crankshafts
and kick levers for different ranges of motorcycles. The company is managed by a team of
professionals with focus on:
• customer satisfaction;
• continual improvement;
• prevention of pollution, hazards and accident; and
• compliance with legal and other applicable requirements.
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Since its establishment in 1971, the four decades of the eventful journey have established
XYZ Company as a name to reckon with as reputed suppliers of hot forged components
and sub-assemblies to a number of industries in two-wheeler segments in India and
abroad. With the vision of its founder – Umesh Munjal, the new dimensions have been
added to the operations, keeping excellence and quality as the benchmarks. Innovation,
futuristic R&D, zero error, precision work, culture have added to elite performance of
Industry. The different departments include forging shop, ultrasonic section, machine
shop and standard room. In the competitive world of globalization, all industries are
focusing towards higher productivity through system simplification and organizational
potential. Nowadays, the market is increasingly demanding more customized products,
thus putting the manufacturers under pressure to reduce the product cost in order to
survive. More and more numbers of forging mills are coming in market and everyone
is trying to increase the profitability that can only be possible through a continuous
improvement in the manufacturing process. By considering all these facts, a study has
been conducted in the selected unit to reduce the rejection with DMAIC study.

Implementation of DMAIC cycle

Define phase. The data were collected for six months for P-19, KZNA and M2W crankshaft
products. The total rejection of the different products is shown in Figure 15. The average
rejection of the products was 2,316, which was on high side. The fault-wise rejection of the
products is shown in Table XV.
Measure phase. Measurement is the second phase of the DMAIC study. The data were
collected for P-19 crankshaft product. The histogram has been prepared with the help of Minitab
Software that shows the mean, standard deviation of 20 samples taken randomly. Figure 16
shows the histogram with an undersized total length and a standard length of 108.32 mm.
From Figure 16, the values of Cp and Cpk come out as 1.75 and 0.62.
Total PPM ¼ 41,099.42. Figure 17 shows that three readings show extreme variation,
which indicates that the process needs stabilization.

S.No. Performance Reduction (%)

1 Cycle time 14.71

Table XIV. 2 Production lead time 14.88
Outcomes of 3 Work in progress inventory 17.76
modifications in 4 Workforce (operator + process shifter) 17.64
current state map 5 Movement of material (distance) 37.97
 3,500
REJ. (PPM) Managing
industrial
3,000
2,962
2,813 operations
2,500 2,355 2,329 2,316

1,970
2,000

1,466
1,500

1,000

500
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Figure 15.
0 Total rejection of
May June July August September October Average different products
2014 2014 2014 2014 2014 2014

Faults Undersized T/L Pitting OD flash Unfilling Blocker Flatness more Flange damage other
Table XV.
REJ (PPM) 697 515 377 347 169 91 71 116 Fault-wise rejection

Process Capability of t/length 108.50+0.5/–0.6 (c/s left p-90)

LSL USL
Process Data Within
LSL 107.9 Overall
Target *
USL 109 Potential (Within) Capability
Sample Mean 108.805 Cp 1.75
Sample N 50 CPL 2.88
SD (Within) 0.1047 CPU 0.62
SD (Overall) 0.112309 Cpk 0.62
Overall Capability
Pp 1.63
PPL 2.69
PPU 0.58
Ppk 0.58
Cpm *

00 15 30 45 60 75 90 05
8. 8. 8. 8. 8. 8. 8. 9.
10 10 10 10 10 10 10 10
Observed Performance Exp. Within Performance Exp. Overall Performance
PPM < LSL 0.00 PPM < LSL 0.00 PPM < LSL 0.00 Figure 16.
PPM > USL 0.00 PPM > USL 31,134.06 PPM > USL 41,099.42 Histogram for an
PPM Total 0.00 PPM Total 31,134.06 PPM Total 41,099.42 undersized
total length
Note: *Means neglected

Analyze phase. Analyze phase is the third phase of DMAIC study. The problem has been
studied and fleshed out for the root cause or causes of the problem. After measuring the current
process, relevant data were collected from define stage for future comparison. By conducting
brain storming sessions, it was ensured that all possible factors have been considered for an
undersized total length. The root cause of the problem is shown in Table XVI.
 MD I-MR Chart of T/LENGTH
UCL =136.732
Individual Value 136.6

136.4
X =136.313
136.2

136.0
LCL =135.893
136.8

1 6 11 16 21 26 31 36 41 46
Observation
0.8

0.6
Moving Range

UCL =0.5154
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0.4

0.2
Figure 17. MR = 0.1578
IM-R chart for
0.0 LCL = 0
an undersized
total length 1 6 11 16 21 26 31 36 41 46
Observation

Man Carelessness of forger

Press up and down setting time problem
Machine Undersized billet length
Stopper at band saw not working properly
100% Gauging tool was not properly being done prior to loading
Unstandardized packing plates
Table XVI. Method Billet was not kept in the center of blocker die
Root cause of Miscellaneous Power tripping
the problem High temperature of billet

Improve phase. In improve phase, the improvements are done to improve the problem of an
undersized total length.
The steps taken to improve the problem are as follows:
• The problem of jaws change frequency should be given in process operation sheet.
Vice was also not in the route of process operation. Proper training should be
provided to the worker for proper clamping of the work piece. Frequency of the sheet
jaws should be checked on a daily basis.
Total production at different stages has been analyzed and it has been observed that the
actual production was more than the standardized production (around 5,000). Table XVII
indicated that total production exceeded the standardized production.
The standardized total length (length of die + thickness of packing plates) required
was validated by using standardized plate thickness. The pin size lengths of bottom/
finisher and bottom blocker were also standardized, as shown in Table XVIII (see also
Table XIX).
Control phase. In control phase, steps are taken to control the already discussed
problem. The standard operating procedure has been prepared to ascertain the benefits in
future time.
 SOP for forging press. To control the variation in an undersized total length, the Managing
standard operating procedure (SOP) and skilled matrix cum training need identification industrial
(providing on job and off the job training as per recommendation of the different experts operations
from various departments):
(1) working area around forging press should be neat and clean;
(2) tool shadow board should be placed in a proper area;
(3) all tools should be placed at their places (SMED table);
(4) daily tools should be placed closer to forger;
(5) the water spray tank and oil should be filled properly;
(6) air gun should be in working condition;
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(7) die bolts and clamps should be kept tight;

(8) the length of bolts should be equal;
(9) the top die temperature and bottom die temperature should be checked;
(10) it should be ensured that the billet heater temperature is 1,210 degree before starting
production;
(11) production should start after first piece inspection by Quality Assurance Department;

Die status Production (in pcs) Reason to open die

New 5,790 Worn out

Polished 1,500 More flatness
1st re-cut 3,010 Worn out
Polished 3,615 More flatness Table XVII.
Polished 2,685 Crack Total production
2nd re-cut 4,050 Changed planning vs standardized
Total 20,650 Die continue production

Packing plate Total length

Die Die number Length of die (mm) thickness (mm) required (mm)

Bottom finisher BF-CR-1104 136 24 160 Table XVIII.

Bottom blocker BB-CR-1102 136 24 160 Standardized total
Top blocker TB-CS-1121 71 24 95 length of
Top finisher TF-CS-1110 89 6 95 crankshaft P-19

Problem Root cause of the problem Activity made to improve the process

Tripping of work piece in Pump circulation is not proper New pump has been introduced Table XIX.
the induction coil Countermeasures of
Improper temperature Input voltage not proper Frequency of voltage stabilizer has been controlled high temperature
of furnace of billet
 MD (12) the measuring instrument should be used very carefully;
(13) it should be ensured that all gauges and instrument are calibrated;
(14) red bins should be used for rejection, and yellow for rework;
(15) the standardized pin and packing should be used while die setting, if any problem is
found, the shift supervisor should be informed;
(16) safety equipment must be used in forge shop; and
(17) 5S should be maintained in the working area.
SOP for trimming press:
(1) the area should be kept neat and clean;
(2) the machine should be oiled according to the schedule;
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(3) the safety equipment should be used during trimming;

(4) the cold piece should not be trimmed;
(5) the trimming machine should not be stopped while forging press is running;
(6) the scrap ( flash) should be kept into the trolley;
(7) the trimming die should be loaded according to the model of component while
forging press is running;
(8) trimming diameter should be according to the diameter of forged component;
(9) the rejected pieces should be kept in red bin and rework pieces in yellow bin; and
(10) 5S should be maintained in the working area.

6. Cost benefit analysis and validation of overall results

Cost benefit analysis
Case Study 1. Cutting operation. Now, metal cutting band saw machine was employed in the
cutting operation and it required a single skilled worker in place of two unskilled workers.
In this machine two motors, with power 2 HP and 1/2HP, were installed and it cost about
13/per hour or two units of electricity in 1 h:
• Payment of two unskilled workers per month ¼ 7,500×2 ¼ Rs15,000.
• Payment of one skilled worker per month ¼ Rs10,000.
• Profit in payment ¼ 15,000 − 10,000 ¼ Rs5,000.
• Total power consumed per month ¼ Rs325.
• Additional cost ¼ Rs68,000 (one time cost).
• Profit ¼ 5,000 – 325 ¼ Rs4,675 per month or Rs56,100 yearly.
Packing department. The merging of two packaging processes, from second
and third newly reduced packaging processes, is designed and resulting profits are
as follows:
• Payment of one worker per month ¼ Rs7,500.
• Additional cost ¼ Rs0.
• Profit ¼ Rs7,500 per month or Rs90,000 yearly.
 Movement of material. Changed layout reduces one member out of total workforce and the Managing
results are as follows: industrial
• Payment of worker per month ¼ Rs7,000. operations
• Additional cost ¼ Rs0.
• Profit ¼ Rs7,000 per month or Rs84,000 yearly.
Overall profits:
• Profit ¼ 2,29,800 – 6,800 ¼ Rs1,61,800
Case Study 2
• PPM before six sigma ¼ 11,179.87.
• achieved PPM ¼ 28.69.
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• cost per piece ¼ rupees 110.

• PPM reduction ¼ 11,151.18.
• monthly production ¼ 120,000.
• savings per month ¼ 11,151.18 × 120,000/106 ¼ 1,338.1416 pcs.
• yearly savings ¼ 1,338.1416 × 110 × 12 ¼ rupees 1,766,346.384/17. 66 lakhs.

Validation of overall results

The overall improvement is validated by applying paired sample t-test in SPSS software
(v22). In this statistical test, Null Hypothesis is taken as population mean and tested at the
level of significance adopted.
Null hypothesis:
H0. There is no significant difference in the overall improvement before and after
implementing lean thinking.
Alternate hypothesis:
Ha. There is a significant difference in the overall improvement before and after
implementing lean thinking.
• Average of deviation ¼ 92.48.
• Standard Deviation ¼ 0.779.
• t value ¼ 6.765.
• p-value (two tailed) ¼ 0.004.
The table value for 8 degrees of freedom at 5 percent significance is 2.732, which is less than
6.765 and p-value is less than 0.05. Hence, the null hypothesis is rejected. The result signifies
that there is a significant difference in the overall improvement before and after implementing
lean thinking. Hence, it is concluded that lean thinking brings a significant positive impact on
processes in the case company.

7. Conclusions, applicability, limitations and scope of future work

Results of investigation demonstrated that Lean Thinking is a powerful tool of production
management. LM is one of the most important strategies to decrease the defects, improve
the process capability and eliminate waste. Case companies under study experienced high
 MD variations in their processes, which was contributing to various losses. The main
challenges in the case companies were a large amount of WIP production, a large product
portfolio, high rejection rates and an unproductive production layout. So, there was a lot of
scope for the implementation of six sigma and VSM in such types of manufacturing
industries, which would create lean thinking. VSM and six sigma use lean thinking to
reduce or eliminate non-value-addition activities. LM is a long-term method and despite
being very extended and time-consuming, it guarantees proper identification of problems
and their effects for the improvement process. It ensures developing and implementing
effective improvement actions and, what is most important, it guarantees that the
implemented actions will be continued in the future. The results obtained from the case
studies are as follows:
• time taken to manufacture a pillar rod was reduced by 14.71 percent;
• the movement of material was reduced by 37.97 percent;
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• WIP inventory was reduced by 17.76 percent;

• production lead time was reduced by 14.88 percent;
• workforce was reduced by 17.64 percent;
• labor productivity was increased by 5 percent; and
• the case Company II earned the profit of Rs17.66 lakhs annually.
LM has proven as a universal approach of achieving major enhancements through system
simplification and organizational potential through incremental improvements. It is a viable
and popular approach for developing production processes and enabling continuous
improvement in these companies through elimination of waste. It is evident that mapping
the value stream helps in identifying the different non-value-adding activities in a process
flow easily.
The lean technique could be implemented along with the simulation tool to improve the
utilization of resources to a greater extent. Therefore, it is concluded that there is a broad
scope of elimination of different forms of wastes from manufacturing system processes by
lean thinking in an Indian context. Simulation analysis proved effective for the companies
under study to actually see and feel how their manufacturing system processes will be in the
future before the actual LM implementation. This study is restricted to a pillar rod only,
whereas the work can be extended for all the products manufactured by the organization.
Fuzzy set theory can be applied for mapping the value stream in order to incorporate the
variability of data to determine the critical path and map the current state map and to prefer
the effective future state map from existing current state maps. With the layout planning
using simulation, utilization of workers can be efficiently made and their performance can
be measured easily. The study results also indicate that enough time should be reserved for
the current state analysis; this includes several aspects, such as an analysis of the
company’s production processes, supply chain and product portfolio. The problem areas
can only be identified after a careful current state analysis. The study can be enhanced by
implementing sophisticated lean methodologies like lean six sigma.

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Further reading
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step of Six Sigma”, Quality and Quantity, Vol. 41 No. 3, pp. 387-400.
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and knowledge creation in quality management”, Journal of Operation Management, Vol. 25
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International Journal for Quality Research, Vol. 6 No. 3, pp. 221-231.
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manufacturing system”, IEEE International Conference on Industrial Engineering and
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International Journal of Six Sigma and Competitive Advantages, Vol. 1 No. 2, pp. 121-133. industrial
Pande, P. and Holpp, L. (2002), What is Lean Six Sigma?, McGraw-Hill, New York, NY. operations
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International Journal of Six Sigma and Competitive Advantages, Vol. 1 No. 1, pp. 4-20.
Tanger, M.T., Sezen, B. and Antony, J. (2007), “An overview of six sigma applications in healthcare
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Corresponding author
Jagdeep Singh can be contacted at: jagdhoor605@yahoo.com
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