How to Upgrade Pakistani Textile Industry ? Effects of Lean Techniques on the Company’s Productivity


Master's Thesis, 2020

76 Pages, Grade: A


Excerpt

Table of Contents

ABSTRACT

Chapter 1: INTRODUCTION
1.1. Introduction
1.2. Background Study
1.3. Introduction to Lean
1.4. Types of Wastes
1.5. Lean Principles and Tools
1.6. Problem Statement
1.7. Research Objectives
1.8. Research Questions
1.9. Significance of the Study
1.10. Hypotheses
1.11. Tools Implemented
1.11.1. Single Minute Exchange of Die (SMED)
1) Preparation before the stop is strategy
2) Use exact locations for everything
3) Follow a Standard Operating Procedure
4) Training, training, training
5) Adapt the apparatus
6) Never discontinue looking for waste
1.11.2 5-S Methodology

Chapter 2: Literature Review
2.1 Literature Review
2.2. Continuous Improvement
2.3 Cost Reduction
2.4 Reduction of Rework
2.5 Independent and dependent Variables relationship

Chapter 3: Methodology
3.1. Theory of Constraints
3.2. Theoretical Framework
3.3. Productivity Enhancement through Theory of Constraints
3.4. Research Methodology
3.5 Research Philosophy
3.6. Research Nature
3.7. Research Approach
3.8. Type of Variables
3.9. Data Collection Process
3.10. Designing of Questionnaires
3.11. Sample Size

Chapter 4: Data Analysis
4.1. Data Collected through Survey

Chapter 5: Implementation of the Lean Tools
5.1. Implementation of Lean Tools
5.1.1. SMED
5.1.2. Internal / External Machine Change Plan
5.1.3. Total Non-Productive and Productive Time
5.1.4. Unit plan of the Production Output
5.2. 5-S Methodology
5.2.1 Following was the condition without 5S
5.2.2. Methods adopted for Implementation
5.2.3. After Implementation

Chapter 6: Results, Discussion and Data analysis using SPSS
6.1. Results and Discussions
6.2. Statistical Findings
6.3 Discussion and Crux

References

ABSTRACT

For the survival in the present race of industries it is very important to upgrade and calibrate the technology. Lean manufacturing concept is applied to Pakistan’s Textile trade. The determination of conducting this study is to check that how much lean is effective; it is a multidimensional approach only the major dimensions are discussed in this research like reducing waste and improving productivity in garment production. In this thesis different apparel industries are overseen using interviews, secondary data and observations, a survey is also conducted to gather general information and effectiveness of lean and its tools. Two lean tools are also implemented. Resultantly the data gathered concludes that lean approach is highly efficient, but still a long way to go on the road of lean. The conducted survey shows that there is a good awareness regarding the lean approach, management knows that lean manufacturing is very helpful but there are unable in implementation, there is a less implementation knowledge and training staff in the companies. Only two lean tools are implemented in this thesis and more tools can be implemented in the future.

Keywords: Lean Manufacturing, Apparel industry, lead time, wastage elimination

Chapter 1: INTRODUCTION

1.1. Introduction

We are living in the regime of innovation in which the smarter person wins the race rather than the hard worker. The technology is helpful in providing sufficient amount of data from the different processes, it helps in identifying all the loop holes and non-conformities but the areas are not properly identified, data examined is incorrect or ambiguous. The management is incompetent in exploring the data at the desired level at which different results can be obtained. The reason behind it is the lack skilled team latest techniques to solve these complex problems.

Reducing the time by eliminating the cause of muda (waste) in the work flow is one of the basic ideas of lean manufacturing. On other hand lean is used in productivity enhancement. Lean creativity is to achieve customer’s requirement through the use of the absolute minimum amount of man to machine ratio and material. This is achieved by continuous effort of improvement, identification and eradication of waste through a systematic methodology that relies on team-integration and effective communication which leads to long and short term goals achievement and helps the company to be competitive to survive in the current regime (Odomirok, 2015).

The doctrine of Lean Manufacturing is deep rooted with the Toyota Manufacturing Systems. The concept of waste is very different in Lean, It don’t only focus on the tangible waste which is in the hard form but also on the intangible waste which is produced in form of processes due to different causes. Lean simple defines waste as “Non Value Added” whether it be process or hard waste. Lean Manufacturing techniques can be implemented in different ways, Toyota is the pioneers in the implementation, and they developed Toyota Production System (TPS). Toyota worked on both cultural and operational elements. While discussing operation management there are many types of wastages involved in it. Waste is defined as nonprofit oriented stuff or simply which the customer is not paying i.e. customer is paying for the final manufactured product not for the delays or the waste (MUDA) generated during its manufacturing. Waste can be both tangible and intangible.

Lean manufacturing means smart (specific, measurable, attainable, realistic and timely). It is a simple methodology of elimination of waste (MUDA) which is in the manufacturing system. This technique has wide dimensions; it is also helpful in the elimination of overburden (MURI) and unevenness of the workload (MURA). Many organizations has implemented the lean techniques and gained a lot from it and still the game is not over. The only thing which a company should focus is a trained staff and the company employs to absorb the tools and techniques.

Motivation

In August 2014, City of A (a City with 200,000 people in North Texas) decided to suspend construction of a $600,000 project of a sidewalk, landscape development in its downtown area due to incorrect design. The problem had arisen after detection of mismatch and discrepancy between the design information provided, site actual conditions and lead time calculation. The poor level of communication and calculation between the three parties, owner, designer, and contractor, contributed to the failure of the construction process and led in project postponement.

The project was very easy and simple, but several factors contributed towards its failure. The supplier’s control had severely impacted the construction schedule and caused delays. Initial issues with condition survey, drainage, gas line, old and deteriorated water pipe leaks, underground electrical conduit, differing surface conditions, and restriction with project sequencing due to limited access to shopping center parking areas all affected construction efficiency, and impacted the construction activities. This case is an example of the necessity for improvement with the information and communication processes within traditional contract practices that are used in these types of projects. Moreover, communicating with general contractors indicated similar situations in previous projects within North Texas, which give these problems a redundancy feature that might continue affecting contractors in similar projects in the future.

1.2. Background Study

Textile is the major contributor of the Pakistan’s economy; currently it is ranked 12th in the Global Textile exporters and 4th among the World Wide cotton production and about 40% of the country’s employment is integrated with this sector reported by Textile World Asia issue June-2015. The core competencies of the large, medium and small scale industries are manufacturing the goods. The problem with the industries was that they were failed in producing quality goods as per customer standard and lead time, which had a serious impact on the overall cost factor and it became unable for the companies to meet its both ends.

The world is becoming more and more globalized, there is a wide variety for the customer to select the vendor and customer wants high quality in low cost and less lead time. It is only possible when the company adopts new techniques and leaves the traditional manufacturing techniques to compete in the race.

When the lean philosophy was adopted by the companies a horizon was opened towards quality production, rework reduction, continuous improvement and cost reduction. These four factors are directly and indirectly integrated with each other. Quality improvement can only be done when there is rework improvement, rework improvement is only possible under the umbrella of continuous improvement and all these factors are responsible for cost reduction. Lean is the solution of all the problems which are barriers in the manufacturing process it is very effective and result oriented approach.

Aim of the Research

With clients yearning for constant escalation in quality and a decrease in price and lead time, fundamental business policies would always be unreliable to meet consumer’s happiness.

For meeting the customer demanding need a company should be striving for continuous improvement and a development culture. Well lean has provided a great improvement in waste reduction and quality improvement.

Today, there is an increasing trend of using lean tools. Research has proven that many firms fail when implementing quality projects and some are scared to initiate the application procedure. The objective of this thesis is to do a thorough literature review that what is the importance of lean manufacturing technique and it’s tools in the textile industry. An adopted questioner will circulated in the five reputed companies of Faisalabad city; as it is the Manchester of Pakistan. Data well be gathered regarding lean effectiveness, importance and implementation and two lean tools will be implemented in a company.

Lean Manufacturing vs. Traditional Methodology

For years companies have created products in a hope of having a market for them. Processes have traditionally been driven by sales forecasts and companies tended to stockpile inventories in case they were needed. A key difference in Lean Manufacturing is that it is based on the concept that assembly should and can be driven by real purchaser request (Ibrahim, 2011). A lean organization can make twice as much product with twice the quality and half the time and space, at half the cost, with a fraction of the normal work-in-process inventory. Lean management is about operating the most efficient and effective organization possible, with least cost and zero waste (Minggu, 2009).

Table no:1

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"Source: CIP, (2006). "Lean Manufacturing / Lean Production".

1.3. Introduction to Lean

Lean manufacturing is capable for finding and eliminating the waste which exist in the manufacturing process. The major areas in which lean are helpful are development of customer and vendor relationship, standardization of quality and increasing profit margins. Toyota Company was pioneer in establishing and implementing Lean approach. Toyota called it Toyota Production System (TPS). Toyota quoted, “TPS is the most efficient way to run Business and it is never ending process of waste elimination.” In the manufacturing process only way to earn large profit is to reduce lead time, a company gets the profit only that product which is shipped instead staled in the stores or lines.

Increasing Customer value and minimizing waste are the 2 very important dimensions for the company to have a serious look. First factor helps in establishing good business and second helps in removing all the loop holes for expediting the process. Toyota terms and philosophy is in the below diagram.

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Figure 1 Toyota Terms and Philosophy (TPS handbook by Craig Woll, PhD)

Following are two key terms which gets a cornerstone position in the manufacturing process:

Value Added: A method which adds-value in the product is called value added. When we convert raw material in to the finished good it is value addition.

Non-Value Added: A process which doesn’t add-value in the product is named value added. While conversion of raw material in to production consumed material doesn’t give the desired result it is non-value addition.

1.4. Types of Wastes

Cost reduction and waste elimination is only possible when there is a culture of continuous improvement. There are various ways for cost reduction; one of it is waste elimination. One of the major goal of Toyota Production System was to identify and eliminate waste at different points in their process. It was only possible when everyone was involved in this process. The selected team leaders guided the workers regarding the type of waste, its identification and its removal. In every case waste doesn’t increase value instead it increases cost. Continuous improvement focuses on the abolition of eight major types of wastes.

1. Overproduction: This arises when processes continue after they should have stopped. It leads to enlarged inventory. Lean advocates the concept of less production rather massive; produce less which can be consumed by the other process in this way a chain is formed and there is huge work in process in the flows. When there is a huge overproduction the chances of faults are increased. Overproduction deals with the less and controlled production
2. Waiting: When there is slow or no production by one process and the next is waiting for it. The cause of this type of waste is due to different breakdowns or absenteeism. It can be countered through effective planning and preventive measures
3. Transport: Excessive movement of materials, such as raw material which is in form of work-in-progress (WIP) is being transferred from one place to other. It should be reduced because it increases lead times and does not add value. Furthermore, leads to damage during transportation of goods. When the whole production is arranged in a single line then there is least transportation waste. It reduces the fatigue of the workers and expedites the process
4. Extra processing: Extra operation which is not required and non-value added. If some process is applied extra on the product it is also considered as waste because it is not required, therefore it is useless, and it increases the processing cost and decreases the quality of the product.
5. Excessive Inventory: All excessive inventories are non-value added. Excessive inventory increase cost factor which comes during staking, transportation and handling. The process should be so steady that a thing should come on the floor when it is required. Excessive inventory doesn’t add value to the product instead it is a waste; a huge workforce is required for the management of the items and it also consumes the floor space.
6. Motion: Extra stages taken to accommodate inefficient design, faults, again and again processing, overproduction, or huge inventory. When the process has a lot of extra motions the amount of fitque will be increased and the time spam of the single operation will increase.
7. Defects: Goods or services that don’t conform to the client requirement, thus causing dissatisfaction. The manufacturing of goods according to customer requirement neither less nor more. Womack et al. (1990)
8. Right person for right Job: This type of waste is recently added in the list which means a person with is not having the proper skills regarding the job is also a waste. The reason behind this concept is that first the person will need time to understand the work which he don’t belong; he will not have a background knowledge regarding that work. This type of person will be different mistakes which will lead to the failure.

1.5. Lean Principles and Tools

The 5 step thought for managing the application of lean practices.

1. Specify value from the standpoint of the end customer by product family.
2. Identify all the steps in the value stream for each product family, eliminating whenever possible those steps that do not create value.
3. Make the value-creating steps occur in tight sequence so the product will flow smoothly toward the customer.
4. As flow is introduced, let customers pull value from the next upstream activity.
5. As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, begin the process again and continue it until a state of perfection is reached in which perfect value is created with no waste.

Essential Lean Tools (Wong et al., 2009)

What is 5-S?

- Sort (remove the things which are not required)
- Set In Order (re-arrange lasting items)
- Shine (clean and review work area)
- Standardize (write principles for above)
- Sustain (regularly apply the principles)

5-S is helpful?

The major purpose of 5S is to eliminate the useless things and arrange the useful things as per requirement.

1. Andon

What is Andon?

Andon work on following principles

Graphic feedback system for the floor management representing production status

Warning signals for corrective maintaince

And permits operator to stop assembly process

How does Andon help?

It is a real-time communication tool for the operation floor that brings instant responsiveness to complications as they happen so can be quickly addressed.

2. Bottleneck Analysis

What is Bottleneck Analysis?

It identifies the areas on which production chokes and eliminates it.

How does Bottleneck Analysis help?

It helps in improving throughput time by strengthening the weakest process in the work process. It is a study of the process which is not giving the output as per standard; It is helpful in the elimination of the constraints which is responsible for the production chocking.

3. Continuous Flow

What is Continuous Flow?

Work in process easily flows through operation with nominal buffer among steps of the operations.

Continuous Flow help?

Removes many types of waste (e.g. inventory, waiting time, and transport).

4. Gemba (The Real Place)

What is Gemba?

An approach that reminds us to get out of the offices and spend time on the operational floor. It is the place where real production occurs.

How does Gemba help?

Endorses a deep understanding of real production issues by top management and by talking with operational floor employees.

5. Heijunka (Level Scheduling)

What is Heijunka?

A form of assembly arrangement that suggests production of small batches instead large batches.

How does Heijunka help?

- Reduce Lead time
- Inventory

6. Hoshin Kanri (Policy Deployment)

What is Hoshin Kanri?

Sharing the corporation strategies and policies with the floor management and the work achievement on the production floor.

How does Hoshin Kanri help?

- Certifies that development towards planned goals
- Elimination of waste plus poor communication

7. Jidoka (Autonomation)

What is Jidoka?

Design apparatus to moderately automate the work process and to spontaneously stop when errors are identified.

How does Jidoka help?

- Monitoring of multiple workstations by one person
- It is helpful in reducing workforce

8. Just-In-Time (JIT)

What is Just-In-Time?

The concept of Just in time deals with the arrangement of things on the floor when needed, Things some come on the floor or in the factory when they are required neither earlier nor late.

How does Just-In-Time help?

- Reduces inventory
- Improve cash flow
- Reduces space

9. Kaizen

What is Kaizen?

A technique in which staff work in an organized way to achieve Continuous improvement.

How does Kaizen help?

- Elimination of waste

10. Kanban (Pull System)

What is Kanban?

It is based on automatic replacement through sign postcards that specify when more goods is product required.

How does Kanban help?

It is helpful in the elimination of the overproduction and inventory waste.

11. KPIs (Key Performance Indicators)

What are KPIs?

Key Performance Indicators are the standards designed to the betterment of the production flows.

12. Muda (Waste)

What is Muda?

Non-value added item in the product; which is not according to the specifications from the customer is muda or waste.

How does Muda help?

Whenever the waste from the process is eliminated the process becomes smarter and quick.

13. Overall Equipment Effectiveness (OEE)

What is Overall Equipment Effectiveness?

Structure for calculating efficiency loss for a given production process. Three types of loss are tracked:

- Quality
- Performance
- Availability

How does Overall Equipment Effectiveness help?

Overall Equipment Effectiveness means 100 percent flawless products without errors. It tracks the processes and eliminates the waste.

14. PDCA (Plan, Do, Check, Act)

What is PDCA?

A methodology for implementing improvements:

- Plan: It is a plan for some improvement
- Do: Implementation of the plan.
- Check: Then check the things for the better results
- Act: Whatever the problems found solve it
- Repeat the Cycle again and again

How does PDCA help?

Applies a systematic method to making enhancements:

- Plan (make a theory regarding the change)
- Do (run trial)
- Check (calculate effects)
- Act (improve your experimentation; try over again)

15. Poka-Yoke (Error Proofing)

How does Poka-Yoke help?

It helps in the identification of the errors in the process through different techniques; which help in making the process flawless.

It is a process of error finding and making the process error free.

16. Root Cause Analysis

What is Root Cause Analysis?

Root Cause Analysis is the solution to many problems; it is actually quick finding of the solution of the problem instead disturbing the whole flow. It ensures the solution of the problem How does Root Cause Analysis help?

It confirms that weather the problem occurred is solved for which the coooretive action has been taken.

17. Single-Minute Exchange of Dies (SMED)

What is Single-Minute Exchange of Dies?

It is reduces the changeover time during the process from days to hours and from hours to single two digit numbers.

- Convert system steps to be outer
- Streamline internal system
- Remove non-essential processes
- Make Uniform Work guidelines

How does Single-Minute Exchange of Dies help?

Facilitates production in smaller stacks, decreases inventory, and increase customer reaction.

18. Six Big Losses

What is Six Big Losses?

Following are the six big losses which are common in all the productions flows.

- Breaks
- Setup/Adjustments
- Small Breaks
- Reduced Quickness
- Startup failure
- Production failure

How does Six Big Losses help?

When these types of losses are eliminated from the production flows then the process is streamlines which leads to increase effectiveness as well as efficiency.

19. SMART Goals

What are SMART Goals?

Goals that are: Specific, Measurable, Attainable, Relevant, and Time-Specific.

How do SMART Goals help?

Helps to ensure that goals are effective.

20. Standardized Work

What is Standardized Work?

This methodology is about making the standard of work by documentation. First observing the work and then standardizing it for future.

How does Standardized Work help?

All the waste from the processes are removed while doing its time and method study and after that it is standardized.

21. Takt Time

What is Takt Time?

This manufacturing technique is the planned production with respect to the customer requirement.

How does Takt Time help?

It is the quickest responsive process as per customer requirement. (actual pcs/target Pcs)

22. Total Productive Maintenance (TPM)

What is Total Productive Maintenance?

The technique which is used in the manufacturing of airplanes, it is the preventive mantaince rather than corrective; which helps in the reduction of breakdown time.

How does Total Productive Maintenance help?

It is the participation of the whole floor management for countering the future coming errors. It helps in reducing defect percentage, reducing cycling time and increasing effectiveness.

23. Value Stream Mapping

What is Value Stream Mapping?

A technique used to visually draw a diagram of the flow of assembly. Which shows all the processes and the replantation of the processes, helps in reducing the repeated process.

How does Value Stream Mapping help?

Discoveries waste in the existing practices and offers a new technique for development for future.

24. Visual Factory

What is Visual Factory?

It is used for following

- Display and controls used in manufacturing
- It improves communication of information throughout the process

1.6. Problem Statement

The ultimate goal of a supplier is customer’s smile. Company fate depends upon the decision made by customer after the goods deliverance. The major concern of the project managers is that the projects are delayed, over budget and lacking satisfactory performance in terms of quality. Interloop Limited is the living example that how they become the world’s largest sox manufacturing company by using the concepts of lean. Its Managing Director said, “Only Lean made it possible.” ITL (2014). Textile industry is at the initial level of lean application and the prime advantage which can be accomplished is cost reduction by lean implementation, followed by client happiness, and reduced lead time (Z.A. Shah & H Hussain Sep-2016).

Modern industrialists are under pressure to find new ways to reduce budgets, increase output, and boost client pleasure. These factors are usually achieved through emerging creative and innovative methods. The lean manufacturing technique is a journey to becoming an outstanding organization through continual developments. The right results can only be obtained from the correct process and method. K. Liker (2004). This helps organizations to think more suitably, clearly, creatively and innovatively pertaining to find solutions for the problems. Arrival of relevant, creative, innovative and peak concepts for applying lean manufacturing system in modern manufacturing industries pertaining to value addition, cost reduction, continual improvements, improve organizational performance and improve customer satisfaction are taken as investigation problem and conceptual result are anticipated.

1.7. Research Objectives

- To investigate how to implement lean and how much it is helpful in textile garment g sector.
- To determine that how lean concepts can improve the Productivity.
- To examine the relationship of continuous improvement, rework reduction and cost reduction on Productivity.
- To explore the impacts of independent variables (continuous improvement, rework reduction and cost reduction) on each other.
- To study the effectiveness of lean tools with paradigm examples.

1.8. Research Questions

The research mainly focuses on the effect of lean techniques on the garment production system. How much it is capable in reducing rework and cost. Therefore, the following research questions have been formulated:

- To what extents continuous improvement is helpful in rework reduction?
- How rework reduction is helpful in cost reduction?
- By what means Independent variables (Continuous improvement, rework and cost reduction) are helpful in improving dependent variable (Productivity enhancement)?

1.9. Significance of the Study

Following points tells to which extends the research is helpful.

1. The race of reducing input, increasing output and trying to generate high profit.
2. Improvement of company financial status by the elimination of the waste and customer satisfaction.
3. Increasing the knowledge of the company employs regarding the lean tools and methods.
4. Increasing the research work in the textile sector for the continuous improvement

1.10. Hypotheses

This study is undertaken to investigate the following hypothesis in the light of existing literature;

H0: Continuous improvement, rework reduction and cost reduction are directly proportional in productivity enhancement of the project.

H1: Continuous improvement, rework reduction and cost reduction are inversely proportional in productivity enhancement of the project.

1.11. Tools Implemented

1.11.1. Single Minute Exchange of Die (SMED)

Single minute Exchange of Die is a lean tool which is helpful for rapid changeover in production process; it offers a quick way of conversion of raw material in to finished goods. The slogan "single minute." It does not mean that all conversions and next process startups should take in only a single minute, but that they should take approximately less than 10 minutes in a solo digit minute.

Toyota developed SMED for the rapid change of dies in more speedy way. They reduced maximum time from one day to 3 minutes. The basic concept of SMED is to decrease startup time of the machine. There are 2 different type of startups; Internal and External startups.

Internal Startups: The startups that can be done only while the apparatus is stopped.

External Startups: The startups that can be done out only while the apparatus is in operational condition.

There has been a huge work done for the SMED procedure in a textile industry and also propose that the effective application of SMED demands following things:

- Team work
- Visual factory control
- Performance measurement
- Kaizen and CI environment

Following are the processes of SMED:

1. Observe the current methodology: The present processes normally documented on videocassette of all the changing procedure. It covers the all changeover from one area to the other.
2. Unconnected the Internal-External actions: All the actions are separated when the machine is stopped or in running position.
3. Stream line the procedure of changeover: For every repetition of the above method, a significant enlargement in set-up times should be expected.
5. Continuous Training: After the setting of all the process continues training of the entire staff is essential.

Use of SMED in Formula-1 Racing

It is based on Principle of SMED, which is used to reduce time; when there is a changeover of the machine parts.

The goal is to speedy change the car parts (i.e. tires, cleaning wind screen, fueling etc.) for bringing it back in the race. The time the car was stopped went from 67 to 3 seconds.

Following are the steps which of quick changeover

1) Preparation before the stop is strategy
2) Use exact locations for everything
3) Follow a Standard Operating Procedure
4) Training, training, training
5) Adapt the apparatus
6) Never discontinue looking for waste

1.11.2 5-S Methodology

5-S is a rudimentary foundation of Lean systems. It is a tool for housekeeping, arrangement, organizing and providing the essential foundation for workstation improvement.

5-S is five Japanese language words.

- Seiri means Sort
- Seiton means Set in order
- Seiso means Shine
- Seiketsu means Standardization
- Shitsuke means Sustain

Definition of Terms

5-S: These are five different Japanese words which are seiri, seiton, seiso, seiketsu and shitsuke and this emphasis on operational workstation.

Seiri: It means sort in English language and it assistances the factory to separate the things into two different classes: useful and non-useful.

Seiton: It means set in order and it is emphases on building efficient use of shop floor by tanging all things in the factory which will boost work flow. All the items should be set in the way that they can be found easily when required.

Seiso: It means to clear. These step emphases on to cleaning all the items and working environment.

Seiketsu: It means standardization of all the 3-Ss.

Shitsuke: This final S typically means for sustain. To sustain all the things which are done and it is the most difficult step.

1.12. Research Plan

Research study is planned and organized in six chapters. Each chapter of the study is organized in logical manner and laid down in the six major parts in following order:

- CHAPTER 1: Introduction: In this chapter background of the study is discussed, research objectives and research problems are defined and hypothesis is designed for deduction.
- CHAPTER 2: Literature Review: In chapter two comprehensive study of literature is conducted to understand the work of scholars previously done, evaluation of historic work and identification of GAPS to be address.
- CHAPTER 3: Methodology: Chapter three elucidates the study design, instruments, procedures, research methodology options and research method & Model adopted to evaluate the problem and purpose of the study.
- CHAPTER 4: Data Analysis: The data which is collected through survey is analyzed.
- CHAPTER 5: Implementation of the Lean Tools: Two tools of lean manufacturing; 5S and SMED, implementation is discussed with practical examples.
- CHAPTER 6: Results and Discussions: The results and crux is discussed in this chapter with the SPSS calculations.
- REFERENCES: The last major part of the thesis is references section.

Chapter 2: Literature Review

2.1 Literature Review

Textile companies is at the initial stage of lean application and the principal advantage which can be achieved is cost reduction by lean implementation, followed by customer happiness, and improved lead time (Z.A. Shah & H Hussain Sep-2016). The backbone of Pakistan economy is Textile, It contributes in term of employment and export. According to APTMA, 2005 textile sector contributes 8.5 percent to the GDP and employs over 40% of the manufacturing sector workforce. Lean manufacturing is the need of the hour for achieving these ultimate goals Gregory Brandon Stump (2008). Lean manufacturing and six sigma is a new concept in enhancement methods, it is defined as the amalgamation of two most powerful development practices (Ronald D. Snee, 2010). Many companies are endorsing lean six sigma in their processes for the output improvement (George et al., 2003). The major areas in which lean are helpful is elimination of waste and rework in the whole process (A. Khan, 2004). Waste exists nearly in all methods and processes of all industry (Feld, 2001). The challenges to Pakistan’s in industries are incredible. The average rejection rate is 10-20 Percent, compliant rate is 2 - 5 percent, and rework is in the range of 30 percent (Khan, 1997). Now in the changed situation, in the absence of protectionist regime, volume is required, with Quality and low production cost. Reduction in production cost is within the range of Pakistani managers but initiatives are required to increase productivity (Sajid, 1999 and 2001). There is an improvement in quality with rework and cost reduction and overall productivity enhancement and provides more leverage to compete internationally. These things will be very helpful for the Pakistani industry, It will boost the efficiency and effectiveness. (Sajid, 2001).

To survive in the present regime there is a need of increasing manufacturing valume to increase market demand. Very few resources are required by lean for improvement rather than huge investments therefore when we compare it with traditional approceses it is better to use lean (Rao, 1999). By implementing continuous improvement techniques we can eliminates waste, reduces lead time, increases product quality, reduces cost of materials, develops a continuous workforce (Hall, 1987).

The internal and external challenges faced in Pakistani industries in general and can be summarized as following (Sajid, 2001; Ahmad, 1996; Khan, 2003 and Moosa, 1999);

- Quality: The things which are countered with the help of quality are Poor, unsatisfactory, unreliable and unpredictable items and errors.
- Price / Cost: As low the manufacturing cost is it will be beneficent for the company to earn its competitive advantage. Higher cost will lead the company towards failure and losses.
- Effectiveness: Missing the goal by time, Quality or quantity.
- Time: Increasing throughput time, reducing delay time, less lead time and overall time management.
- Workforce: Knowledge staff is lacking, small skill, less educated workforce is available.
- Productivity: Level of productivity is low in Asia as compared with the rest of the world, It is the calculation of overall effectiveness.

Successful companies create a surplus through productive operations. It is defined as output to input ratio within a time period with due consideration for Quality. It can be expressed as follows (Prokopenko, 1987 and Alamgir, 2001);

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The below techniques indicated that how productivity can be improve.

- Same input and increased output
- Maintaining the same outputs, or decreasing inputs
- Decreasing inputs and increasing outputs to change the ratio favorably (Weihrich and Knootz, 1993). As such productivity is a combination of both effectiveness (performance) and efficiencies (resources).

Lean is very smart approach, when we compare it with other methods there is a remarkable difference in the results which shows that how lean is a multidimensional approach (Melton 2005). It is very important for a company to build a culture which a help full in lean proliferation rather than reluctant, the areas in which lean work are as following.

- Elimination of the waste in the processes.
- System based on quality
- Inverse proportionality of cost and productivity
- Implementation of simple and smart tools, which can be exercised by everyone.

James Womack et al. (1990) used the term “lean production” in his hardcover that represents the production methodology set up by the Toyota Production System (TPS) that explained the famous 7 kinds of muda (waste) which occur in the production process. TPS proposed a number of highly advanced assembly processes to reduce these wastes (Ohno, 1978; EPA, 2003). Lean manufacturing is the finest manufacturing methodology of 21st era (Nasser et al., 2009). It requires minimum investment as compared to other production systems due to all these reasons it is an ideal candidate for almost every type of factory (small, medium and large) regardless of their type and size (Nasser et al., 2010) .

Continuously improving quality, cost, delivery, and safety and it is achieved by eliminating waste, creating flow, and increasing the efficiency these all are the main focuses of lean sysmatic approach (Plenert, 2007). Lean focuses on ‘doing more with less’ (Womack and Jones, 2003). It is multi-dimensional approach comprising a number of best practices like kaizen (Schonberger, 2007), 5S (EPA, 2003), visual controls, just-in-time, total productive maintenance (Shah and Ward, 2003), single minute exchange of dies (Sanjay and Peter, 2006), Poka-yoke (Bhim and Sharma, 2009), kanban and pull production (Shah and Ward, 2003), quality systems, value stream mapping (Bhim and Sharma, 2009), human resource and supplier management (Shah and Ward, 2003) etc., along with a committed role by the leadership (Feld, 2001; Plenert, 2007) and motivated and empowered employees (Wong et al., 2009). However, transforming an enterprise from traditional style of working to lean is not an overnight process. It involves a number of challenges (Norani et al., 2010) including a change in culture of the organization (Hines at al., 2011), strong relationships with the suppliers based on trust and long term commitment and equally strong relations with the customers. In general, the existence of innovative industrial business relations, the establishment or development of logistic and communication networks, the development of appropriate professional training and educational programs are all fundamental for the development of the new “lean” manufacturing system (Panizzolo, 1998).

Some organizations fail to appropriately implement the lean practices resulting in waste of time and resources. The companies face a number of difficulties in implementing lean. They include a lack of direction and planning and a lack of knowledge of adequate project sequencing (Sanjay and Peter, 2006). The barriers in implementing of lean include (Pavanskar et al., 2003; Achanga et al., 2006; Plenert, 2007; Kumar and Naidu, 2012):

- Administrative values
- Absence of effective communication
- Staff opposition
- Outdated working styles
- Time Management
- Lack of understanding level for practicing lean concepts
- Overall budget limitations
- Failure of previous lean practices
- Absence of apex administration assurance
- Approach of middle staff

Pakistan is lacking behind in lean implementation, instead Bangladesh has done a lot of work in this field and the results recorded are good as compared to Pakistan. The results shows a deep relationship of waste, lead time, cost reduction and increasing quality. (Farhana, 2009).

[...]

Excerpt out of 76 pages

Details

Title
How to Upgrade Pakistani Textile Industry ? Effects of Lean Techniques on the Company’s Productivity
Grade
A
Authors
Year
2020
Pages
76
Catalog Number
V922226
ISBN (eBook)
9783346244352
ISBN (Book)
9783346244369
Language
English
Tags
upgrade, pakistani, textile, industry, effects, lean, techniques, company’s, productivity
Quote paper
Muhammad Bilal Majid (Author)Dr. Irfan Sabir (Author)Dannial Khokhar (Author), 2020, How to Upgrade Pakistani Textile Industry ? Effects of Lean Techniques on the Company’s Productivity, Munich, GRIN Verlag, https://www.grin.com/document/922226

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