Abstract
India’s small and medium enterprises (SME) has around 45% contribution to the total manufacturing output of the country. SMEs face the problem of scrap and rework generation because of improper workplace organization and inappropriate treatment of raw materials as well as finished goods. Due to rework problems, the overall quality of the product is also compromised. Such problems hike the overall manufacturing cost resulting in a thin profit margin by the firms. A little reduction in expenses at a small-scale can be effective in the overall manufacturing cost in industries. This case study focuses on the reduction of scrap and rework cost, along with solving the operations and management-related problems in an enterprise. Based on the 5S methodology, a special-purpose machine (SPM) has been made and implemented in an Indian firm, which reduces approximately 5% scrap and rework cost in a duration of 3 months.
Published Version
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