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Application of Lean Production Case Study from Garment Sector of Pakistan 28 March, 2011 Presenters: Mr. Haider Sag - PowerPoint PPT Presentation


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SMEDA-Industry Support Program. Application of Lean Production Case Study from Garment Sector of Pakistan 28 March, 2011 Presenters: Mr. Haider Sagheer Mr. Qasar Wasique Ahmed Dr. Nabeel Amin `. Background of the Project. Labor intensive

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SMEDA-Industry Support Program

Application of Lean Production

Case Study from Garment Sector of Pakistan

28 March, 2011

Presenters:

Mr. Haider Sagheer

Mr. Qasar Wasique Ahmed

Dr. Nabeel Amin

`


Background of the project
Background of the Project

  • Labor intensive

  • Huge variety of products with small quantity orders

  • Inefficient production systems

  • High need of flexibility

  • Large employment Opportunities and increased share in export market


Evaluation phase
Evaluation Phase

  • House Keeping

  • Factory Current Efficiency Level

  • Factory Current Defect Rate

  • Material Handling

  • Space Utilization

  • Style Change Over Analysis





2 factory efficiency
2. Factory Efficiency

Following were the major steps taken for calculating factory current efficiency level:

  • SAM Calculation of major products

  • Calculation of Over time

  • Data Collection from Bundle induction to sewing lines

  • Data Collection of finished Bundles

  • Idle Time Calculations



3 defect rate
3. Defect Rate

  • Data collection by introducing appropriate format's.

  • Data collection at end line and finishing stage.

  • Appointed end line checkers.

  • After collection of data for one month an average of 35-40% defect rate was observed.




Target setting phase
Target Setting Phase

Following Key Performance Indicators were defined as project target metrics:

1. Efficiency

2. Defect Rate

3. Material Handling

4. Space Utilization

5. Throughput Time

6. Cost/Pc


Implementation phase
Implementation Phase

  • Implementing 5S/Visual Control Systems across the Factory

  • Implementation of IE functions

  • Conducting Style Change Over Analysis by SMED (Reducing throughput time)

  • Running of Sewing Line at target efficiency level

  • Implementing Hourly Based Quality Monitoring System

  • Implementing SQC techniques

  • Introducing Incentive System for Quality Control


5S

Before After



After

Before





Critical path analysis gundo ct short

Pkt bag OL

Frnt rise att, Back Yoke Att

Frnt rise OL, Back yokes OL

Pkt bag att, Pkt TS

Frnt rise TS, Back yokes TS

Back rise att, Piping making

Back Rise OL

Back rise TS, Piping att to bk yokes, Back yokes att to back body

Button hole

Bk yoke edge OL

Side seam att & lbl att

  • Bartack 4 pts

Side seam OL

Inseam att

In seam OL

W.B TS

W.B elastic mkg, Side label att, Elastic att at W.B, Main label att

Bottom hem

Store Room

Critical path Analysis- Gundo CT Short

  • CP Time = 9.63, SM = 1.31O/L time = 1.31


Style change analysis model line
Style Change Analysis (Model Line)

Bundle Size: 15, Style: Short

Date:13/5/10, Time: 10:30


Activities to introduce flexible production line
Activities to introduce Flexible Production Line

  • Reduction of Bundle Size

  • Hourly Basis Monitoring System

  • Advance Cutting in Shelves

  • Implementation of Checklist for Accessories

  • Layout – Shifting of Special Machines

  • Selection Criteria of Operators, Payments, Disciplinary Issues,



Overhead cost Comparison (for 17 no of machines for one month)

OH cost Difference per piece = 18-12.31 = 5.47

OH Cost Savings = 5.47*8125 = Rs. 44, 443


Quality control system
Quality Control System month)

  • Introduced Hourly Basis Reports

    End Line

    Finishing

  • Check Sheets – Major Defects

    ISSUES:

    Reports could not be properly filled due to large buddle size

    Operators were not submitting small bundles on time

    Low DHU is Key Factor for running model line, therefore immediate action must be taken to properly fill the Q.C Reports



Defect rate
Defect Rate month)

DR reduces Upto 5%


Cost savings through defect rate reduction
Cost Savings Through Defect Rate Reduction month)

  • Avg. Production per Month = 60, 000 Pcs

  • DR Before =30%, Rework in Nos = 18000 pcs

  • DR After = 5%, Rework in Nos = 3000 pcs

  • Rework Difference = 18000 – 3000 = 15000 pcs

  • Avg. Operation Time =0.5 min

  • Total time = 15000*0.5=7500 min

  • Total time consumed in RW is 7* times of the operation 1st time performed.

  • Total time saved= 7500 * 7 = 52500 min

  • Avg. SAM per pc = 12 min

    *According to KSA study this factor ranges from 7 to 14 times of the operation 1st time performed.


Cost savings through defect rate reduction1
Cost Savings Through Defect Rate Reduction month)

  • No. of pcs that can be produced = 52500/12*32 = 1400pcs

  • Avg. Profit per pc @15% (FOB=Rs.425) = Rs. 64

  • Cost saving in RW/[email protected]% per Mth = 1400 * 64

    = Rs. 89,600

  • Projected saving by sustaining the RW @5%over one year= 89,600*12

    = Rs. 10,75,200


Cost savings through defect rate reduction inspection cost
Cost Savings Through Defect Rate Reduction month) (Inspection Cost)

  • Salary per month(25 working days) = Rs. 7000

  • Per day income (salary)=7000/25 = Rs. 280

  • Avg. pcs inspected per day per Inspector=250

  • No of days needed by one inspector=15000/250=60 days

  • Savings/Month By Reducing Inspection = 60*280

    = Rs. 16800

  • Projected Saving over one year through Inspection

    = 16800*12= 201,600


Total savings per month
Total Savings Per Month month)

Cost Savings by

Reducing DR/month + Cost Savings By Reducing Inspection

= Rs. 89600 + Rs. 16800

= Rs. 106400


Results
Results month)



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