Redesigning an assembly line through Lean-Kaizen: an Indian case

Abstract

Purpose – The purpose of this paper is to address the adoption of Lean-Kaizen approach to process improvement by the largest manufacturer of steering systems for passenger car and utility vehicle market in India. The company was facing severe liquidity crunch due to falling customer demand (25 percent lower than forecasted), rising cost of raw material and bank borrowing rates. In order to survive in such stiff scenario, the company systematically deployed Kaizen events and drastically improved their internal efficiency. Design/methodology/approach – The study categorically illustrates the employment of value stream mapping (VSM) to target the areas for Kaizen improvement events. Current state VSM was developed to display the non-value-added activities in the existing assembly process. Future state VSM was proposed. After identifying root cause of wastes using 5 Why, three Kaizen events were proposed. Findings – The current state VSM revealed cumulative inventory of 61 days in the entire process, long distances travelled by subassembly for final assembly (294 meters) and a high defect rate (879 parts per million). After modifying the assembly line using lean strategies, the company reduced its inventory levels by 66 percent, defect rate reduced by 32 percent and achieved other benefits such as reduced equipment, production staff and storage space. These reductions helped the company in saving the working capital and also contributed significantly to its profitability. Originality/value – The study exhibits implementation of Lean-Kaizen approach for redesigning assembly line in an auto component manufacturing unit. The proposed lean strategies are considered to be highly valuable for manufacturer of steering for passenger cars and utility vehicles market.