CASE ANALYSIS OF INDUS MOTORS CO. LTD.

PREPARED BY:

Mujahid Ali (258) M.Nawaz Younis (272) Aamir Manzoor (295)

SUBMITTED TO:

Sir Qamar Ali waince

BBA (Hons) Section (B) SEMESTER: 8TH SESSION: 2007-2011

DEPARTMENT OF MANAGEMENT SCIENCES

G.C University Faisalabad

Introduction:
In the first phase of the case analysis we generally explained the three Japanese terms Muda (Non value added), Muri (Over burden), Mura (Unevenness) which are used in the case study to enhance the productivity, and also explained the Yamazumi chart which showing the Time spent in doing Standard Job Element & Time spent in Muda. Regarding these terms a example of case study productivity enhancement at indus motor co. ltd. through focusing on 3ms. is also added in the analysis. In the next phase we done the comparison of general terms (Muda ,Mura, Muri) with its practical implementation that was done in the case study. In the end summing up with the conclusion.

Theoretical Background:
Muda (Non value added):
Muda is a traditional Japanese term for an activity that is wasteful and doesn't add value or is unproductive. It is also a key concept in the Toyota Production System (TPS) and is one of the three types of waste (muda,mura,muri) that it identifies. Waste reduction is an effective way to increase profitability. Toyota merely picked up these three words beginning with the prefix mu which in Japan are widely recognized as a reference to a product improvement program or campaign. Muda has been given much greater attention as waste than the other two which means that whilst many Lean practitioners have learned to see muda they fail to see in the same prominence the wastes of mura (unevenness) and muri (overburden).

The seven wastes:

The expression "Learning to see" comes from an ever developing ability to see waste where it was not perceived before. Many have sought to develop this ability by 'trips to Japan' to visit Toyota to see the difference between their operation and one that has been under continuous improvement for thirty years under the TPS. The following "seven wastes" identify resources which are commonly wasted. They were identified by Toyota's Chief Engineer, Taiichi Ohno as part of the Toyota Production System. Transportation: Each time a product is moved it stands the risk of being damaged, lost, delayed etc. as well as being a cost for no added value. Transportation does not make any transformation to the product that the consumer is supposed to pay for. Inventory: Inventory, be it in the form of raw materials, work-in-progress (WIP), or finished goods, represents a capital outlay that has not yet produced an income either by the producer or for the consumer. Any of these three items not being actively processed to add value is waste. Motion: As compared to Transportation, Motion refers to the producer, worker or equipment. This has significance to damage, wear and safety. It also includes the fixed assets and expenses incurred in the production. Waiting: Whenever goods are not in transport or being processed, they are waiting. In traditional processes, a large part of an individual product's life is spent waiting to be worked on. Over-processing: Over-processing occurs any time more work is done on a piece than what is required by the customer. This also includes using tools that are more precise, complex, or expensive than absolutely required. Over-production: Overproduction occurs when more product is produced than is required at that time by your customers. One common practice that leads to this muda is the production of large batches, as oftentimes consumer needs change over the long times large batches require. Overproduction is considered the worst muda because it hides and/or generates all the others.

Defects: Whenever defects occur, extra costs are incurred reworking the part, rescheduling production, etc.

An easy way to remember the 7 wastes is TIMWOOD. T: Transportation I: Inventory M: Motion W: Wait O: Over-processing O: Over-production D: Defect

Muri (Over burden):

Muri is one of three types of waste (Muda, Mura, Muri) identified in the Toyota Production System. Waste reduction is an effective way to increase profitability. Muri can be avoided through standardized work. To achieve this standard condition or output must be defined to assure effective judgment of quality. Then every process and function must be reduced to its simplest elements for examination and later recombination. The process must then be standardized to achieve the standard condition. This is done by taking simple work elements and combining them, one-by-one into standardized work sequences. When everyone knows the standard condition, and the standardized work sequences, the results observed include Heightened employee morale (due to close examination of ergonomics and safety). Higher quality.

improved productivity reduced costs

Mura (Unevenness):
Mura is traditional general Japanese term for unevenness, inconsistency in physical matter or human spiritual condition. It is also a key concept in the Toyota Production System. Waste reduction is an effective way to increase profitability. Toyota merely picked up these three words with prefix mu which every Japanese know, as product improvement program or campaign. Mura is avoided through Just In Time systems which are based on little or no inventory, by supplying the production process with the right part, at the right time, in the right amount, and first-in, first out component flow. If parts or material defects are found in one process, the Just-in-Time approach requires that the problem be quickly identified and corrected.

Takt time:
Takt time, derived from the German word Taktzeit which translates to cycle time, sets the pace for industrial manufacturing lines. For example, in automobile manufacturing, cars are assembled on a line, and are moved on to the next station after a certain time that is Takt time. The time needed to complete work on each station has to be less than the takt time in order for the product to be completed within the allotted time. Takt time concept aims to match the pace of production with customer demand.

Yamazumi chart:
Yamazumi is a Japanese word that literally means to stack up. A Yamazumi chart is a stacked bar chart that shows the balance of cycle time workloads between a number of operators typically in an assembly line or work cell. The Yamazumi chart can be either for a single product or multi product assembly line. The time spent for doing any process can be divided into two broad categories : a) Time spent in doing Standard Job Element b) Time spent in Muda (walking, picking, unpacking etc) A standard job element is a value added activity e.g. tightening of bolt for fixing a part which may take 6 seconds. However the time spent in walking to a rack & picking the bolt and bringing to work station which may be taking 4 seconds is a non-value added activity and hence a waste, Muda.

Comparison:
As well as comparison is concerned with general terms (muda,muri & mura) and their practical implementation in case study as we already explained in the literature that the Muda is waste that cant add any value to the final production. Here are some types of Muda:
MUDA of Motion : Any motion that does not contribute directly to adding value. MUDA of Correction: Any Repair is Muda. MUDA of inventory: Any more than the minimum to get the job done. MUDA of Defects: Whenever defects occur, extra costs are incurred reworking the

part, rescheduling production, etc. MUDA of waiting: Waiting for parts to arrive or for a machine to finish a cycle.
MUDA in processing: Over processing. MUDA of over Production too much or too

soon. Now we see how these wastages reduces in the case study Reduction in Walking Time: 51% of non-value added activity consists of walking by Team member for going to part rack for picking the part, bringing it to the vehicle, installing it and then going back to part rack for the next part. This movement was reduced by : 1) Reducing Picking frequency of parts from racks 2) Introduction of Movable Rack Reduction in Picking Frequency/ Extra movement: It was observed that team members were in the habit of picking one part at a time from part rack, and after installing it in the vehicle would go to part rack for next part. Thus if

he is to pick up 7 parts A to G a shown in the sketch below, he will go and come back from the rack 7 times: The team member was advised and trained to pick up as many parts as he can conveniently from the racks and put these in the vehicle and install the parts one after the other. Then for next picking again pick up 2 or 3 parts and bring these to Then for next picking again pick up 2 or 3 parts and bring these to vehicle for installation.

Introduction of Moveable Rack: For small parts like grommet, washer, screws etc small trolleys were introduced which can be attached with the moving vehicle on conveyor as the vehicle approaches a work station. The simultaneous movement of trolley with vehicle enables team member to access to the small parts without walking. The Reduction in Walking Time and Reduction in Picking Frequency/ Extra movement are the practical implementation of the term Muda of Motion.

Conclusion:
The above comparison shows that the general terns (Muda, Mura, Muri) are correctly implemented in the case study. Because by applying these terms Indus motor co. ltd get the desired results which are: The non-value added time reduced from 41 Minutes to 17 Minutes

(reduction of 58%).
The Takt time for each station reduced from 10.5 min/ vehicle to 8.5 min/

vehicle (reduction of 23%). Increase in the production from 10,000 per year vehicles to 13,000 vehicles per year.
Worked area space saved by 20%.