Lean Implementation at Siemens Kalwa Plant

Lean Implementation At Siemens Kalwa Plant
CASE ANALYSIS Prepared By:AMULYA KALIA(400907002) CHETAN MATHUR (400907005) HARPARKAR SINGH (400907007) JAGBIRPAL SINGH (400907009) KARANVEER SINGH (400907012)
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Siemens Introduction
First workshop, 1955
Started with 10 employees

55% subsidiary of Siemens AG Germany in 2009 Factories in Kalwa, Nasik, Calcutta, Aurangabad and Goa Reached upto 4000 employees, 11 sales offices, 23 representatives, 300 dealers, 5
factories and e-offices

Became the second largest of Siemens manufacturing operations outside Germany Four major divisions: Industry, Energy, Healthcare and Consumer products
Kalwa Works: Medium Voltage division, sole manufacturer

Switchboard: second largest MV factory outside Germany
Need for a change

Batch Processing dampened inefficiencies Errors had a ripple effect on overall manufacturing chain Increasing amounts of scrap Increased customer orders: need to utilize full capacity Need for improvement in labor productivity, lower inventory levels & higher throughput In October 2006 : Proposal to implement Lean systems In October 2007 : Gewald, Global head of lean projects arrived at Kalwa and marked the official beginning of the project. The lean team was set and decided to implement for Panels and VCBs units.
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THE LEAN PROGRAM
Question 1: Has Siemens Kalwa plant been effective in achieving lean implementation?
1. Top Management provide a very good support and clear direction
2.
3. 4. 5. 6. 7.
Proper planning in understanding the as is process and to be process

Lean objectives and target was communicated clearly to the whole team in Kalwa plant Formation of Implementation team to operationalize and monitor Site visit to learn from a real life lean implementation Appointment of consultant to help on the lean implementation Organization are highly committed and motivated in implementing lean
Benefits of Implementation
Increased productivity of labor Reduction in inventory levels and associated costs Improved space utilization These Benefits promised to result in Higher throughput of panels
Increased profits for the factory
Question 2: How was the organizations change process managed?

The company had different sections which needed to change during lean management theory for example : shop floor , design and engineering departments, vendor and suppliers All of these sections worked in traditional methods Implementing Lean in the shop floor meant the supporting departments also need to adopt lean methodologies
Layout changes Changes in support system Changes in vendor management Cultural changes
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The organizations change process

In the first step two or three members of the team including Vedak had a trip to the lean plant of Maruti and they could see benefits of lean management At the same time some American consultants arrived to the Kalwa factory to cooperate with them in lean management process implementation. Managers needed to restructure layout and process to implement lean management . Obviously errors, inefficiencies and wastes were not clear before implementation, during this process managers asked every department idea to achieve efficient ways and reduce next impact between personnel
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Question 3: How did Khandekar handle the resistance?

Since lean would involve adjustment to the process flow and directly impact the way employees had been performing their task for years, it has created resentment from various groups of employees. Khandekar attended meetings to explain to the employees the importance of lean to meet with the growing demand of panels. These meetings made and impact on the employees. The lean team hosted discussions for issues related to :
Structure of team Team activities more mechanical Lack of coordination between the departments Errors in design drawings
Resentment existed as employees believed it is another project by management

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Issues with Workers

Bonus was linked to productivity : union wanted daily production to be five panels per day per line but management wanted eight Workers classified as : productive and non productive
The pace of working quickly and relaxing was now not possible
Khandekar interacted with employees and made them aware how their faults and performance resulted in loss to the organisation. This helped increase the interest of workers and employees in lean meetings. Khandekar also explained to the workers the role of lean in increasing the productivity, thus making them part of the process.
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Question 4: How was the lean implementation institutionalized in the new set-up?
Before going for implementation , make ensure a proper foundation in terms of knowledge and understanding of lean manufacturing by all Teach employees about what and how lean manufacturing can benefit them and the firm, this task was assigned to Mr. Gewald (global head for spearheading lean project) Lean implementation team was formed with Mr. Vedak as the lean manager and cross functional team of managers and executives. Brainstorming and awareness sessions were carried out to teach lean principles , implementation and success stories especially at Toyota.
Analysing and identifying key steps to institutionalize lean manufacturing by lean team
Observations and analysis of current process flow
Process Mapping to understand how to current process works.
Current process flow charts
Identify waste areas

non-value adding activities identified from process flow charts Brainstorming to discuss how to make this current process efficient.
Identify changes and implementation

Changes identified in previous step and implementation process begins. Layout changes, changes in support system, in vendor management and cultural changes
Monitoring performances
Monitoring KPIs defined Monitoring team formed to analyse and document KPIs and report the same.
Changes identified to eliminate waste identified

Layout changes Assembly line concept adopted, assembly lines with workstation formation. Time per workstation fixed and work content adjusted Proper and efficient flow of products and worker movement also considered as important factor. To improve response time and coordination between worker and executives, a communication system was created
Changes in support system

Dashboard introduced , issues to be highlighted in the board following concerned personal Display daily out of each assembly lines to show production progress Training and workshops organized to narrow down the skill gaps
Changes identified to eliminate waste identified

Changes in Vendor management
JIT was to focus upon ( parts available at the right time and quality) No batch supplying Long term plans created to implement Lean principle at the vendor side whereas, short term plans to implement pull philosophy of lean system Aim is to reduce storage and inventory space in the factory
Cultural changes
Joint prayers and exercise sessions introduced to have feel team belongingness among internal customers. Uniform dress code introduced
Actions taken to institutionalize the lean implementation in the new set-up of the Kalwa Factory
1. A proper foundation in term of lean and its principles were laid down by educating the employees. 2. Implementation plan was made by lean team followed by analysing the existing processes to identify waste and inefficiencies. 3. By brainstorming , identifying ways and means to improve them 4. Lean team effort in educating and making all people from lower to top level to ensure all understand lean principles. 5. To measure the effectiveness of the changes, continuous monitoring was done by the team itself.
Question 5: How was the lean implementation institutionalized in the new set-up?
Implementation plan as shown in figure implementation was done.

Observations
& Analysis of Current process flow
was made to ensure a smooth
Identify Waste Area

Key Activities
Identify Changes and Implementation

Key Activities From the analysis, changes are identified and the implementation process begins. The changes will cover: - Layout changes
Monitoring Performances
Key Activities Process Mapping to understand how the current process works Current process flowchart is derived from the process mapping activity.
From the derived process flow chart, waste or non-value added works are identified. Through brainstorming, the ways and means to make this process efficient are discussed.
The monitoring KPIs were defined. A monitoring team was formed to document, analyses and report on these KPIs.
Changes in support system

Changes in Vendor Management
Cultural Changes
LAYOUT CHANGES
CHANGES IN THE SUPPORT SYSTEM
Installation of dashboards at the beginning of every line 5 Assembly lines were formed Issues were posted by workers and shop Each line had 6 assembly engineers on the dash boards workstations These issues were discussed on daily Takt time (time per workstation basis to improve the throughput and was fixed at 1 hour) conflicts between departments and workers Also root cause of the problem was determined and solutions to avoid them in future were noted Gaps in skills were identified by skill assessment test
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CHANGES IN VENDOR MANAGEMENT
CULTURAL CHANGES
On time delivery with ensured quality. Joint prayer and exercise Vendors usually supplied materials sessions for each assembly line in batches at the beginning of every shift. With the implementation of lean Instill a sense of Team they are no longer required by Belongingness batch or customer order All the members were given a Challenge for both suppliers and T-shirt imprinted with Lean logo the material planning team as a uniform Vendors were presented with the benefits of the program sends message of team Effort Short term solution Suppliers can manufacture in Bulk and the company will use Pull philosophy, i.e. to pull material when needed
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Lean Implementation At Siemens Kalwa Plant

Started with 10 employees

factories and e-offices

Kalwa Works: Medium Voltage division, sole manufacturer

Need for a change

THE LEAN PROGRAM

Proper planning in understanding the as is process and to be process

Increased profits for the factory

Question 2: How was the organizations change process managed?

The organizations change process

Question 3: How did Khandekar handle the resistance?

Resentment existed as employees believed it is another project by management

Issues with Workers

Current process flow charts

Identify waste areas

Identify changes and implementation

Changes identified to eliminate waste identified

Changes in support system

Changes identified to eliminate waste identified

Implementation plan as shown in figure implementation was done.

was made to ensure a smooth

Identify Waste Area

Identify Changes and Implementation

Changes in support system

CHANGES IN THE SUPPORT SYSTEM

CHANGES IN VENDOR MANAGEMENT

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