Case Study: Lean Implementation at Siemens’ Kalwa Plant

EXECUTIVE SUMMARY 

Briefly. in this instance we glimpse on Kalwa Planet-Siemens in India which better itself from a traditional organisation to tilt direction construction. The first Siemens work store started on May 1st. 1955 in a little topographic point on Mumbai with 10 employees and with really simple equipment’s. Their chief concern is repairing damaged switch boards and other fiction occupations which most of their constituents were imported and little figure of them produced inside workshop.

In 2009 Siemens company in India consolidate its topographic pointinstead than before this mill equipped with the most modern machinery and proving installations and 40 per centum of the India Siemens worked in Kalwa mill. non merely they change their function during these old ages from a simple assembly site to the medium electromotive force patchboards ( M1 ) manufacturer. medium electromotive force indoor and out-of-door vacuity circuit surfs ( MC ) manufacturer. gas insulated switcher ( M2-GIS ) manufacturer in support of the chief company. but besides they improved their place in the market. now the company has 5 mills in Mumbai. Nasik. Calcutta. Aurangabad and Goa. 4000 employees and 11 gross revenues offices. 300 traders.

Furthermore their company is 2nd Siemens mills outside of Germany after Brazil subdivision. Siemens better its merchandises in 4 subdivisions: 1-industry 2-energy 3-healthcare 4-consumer merchandises in India and all of the universe and our instance company manufactured low assortment and high assortment merchandises which belong to power distribution section. energy division. Siemens Company in India competed with ABB. Areva. Schneider electrics on the other manus Kalwa merchandises exported to Bangladesh. Sri Lanka. Nepal. Bhutan. Maldives. Oman. Qatar and etc.

In 2009. 60 to 65 per centum of The Switchboard Factory ( WSWB ) country allocated to fabricating panels ( M1 ) and IVCBs ( MC ) and remain infinite remains for fabricating OVCB ( MC ) and M2 merchandises. This company had 400 forces ( bluish and white neckband ) and employees worked in 2 working displacements and one extra displacement ( if necessary ) .

Manufacture rhythm – order planning and logistic: Initially. SOE ( gross revenues order technology ) was the first section in M1 which had some responsibilities like: design fabrication. procedure planning. testing and quality bundle and despatch commercial. incoming review and shops. Local clients ordered to the regional gross revenues squad and selling squad focused on export orders. Every order that transferred to the SOE marked and entered to the mill. All the orders must passed two phases: 1-Design and technology phase. 2-order planning and executing phase.

After an order received by marketing subdivision. so SEO prepared an technology pulling with cooperation with gross revenues co-workers and client ( to cover client demands ) . these pulling prepaid in 2 phase A and B. in phase A: they have all info except wiring diagram which completed in subdivision B. after go throughing these twodegrees they sent their drawing to the client to O.K. and so direct it to the fabrication. During these procedures SEO consulted them to avoid any non criterion client demand if all the degree passed right the paperss were passed to the fabrication section.

Technical Order Processing section ( TOP ) received orders and recorded it in to the production planning database harmonizing to their times so bringing commission tried to estimated the bringing day of the month to the client. Every order needed two type of natural stuffs ( equipments ) : 1-electrical. 2- mechanical. the top staff wrote the necessary equipments in a list that called ( BOM ) measure of stuffs list. The BOM sent by endeavor resource planning package ( ERP ) to the stuff planning section. mechanical equipments were existed inside of the company and electrical needed to order to the provider.

Then procurement rhythm started following equipments release to the store harmonizing to the demand. The issues fabrication system had many mistake. waste and inefficiencies in store floor and logistic ( they wasted long clip and valuable natural stuffs and sometimes the manufactured panels wasted because of weak layout design) . on the other manus on 2006 client demands increased about 75 per centum and directors need to heighten their fabrication procedure efficiency to cut down their costs and react Oklahoman to the client demand. in October 2006 Siemens AG sent a missive sing the execution of thin direction in Kalwa company and mentioned they eagerness to better Kalwa mill like the other subdivisions during the universe. They expected this execution will heighten company’s capacity to treble during five or six old ages.

Thin direction execution stairss:The thin direction squad visited Siemens site in Turkey which managed in thin direction methods so adviser added to the squad members. one of the most of import responsibilities for directors and squad member is to clear up how much this execution is critical for the company to keep its market portion and all the forces had a critical function to accomplish this end. therefore directors started the Lean direction procedure with encephalon storming among all the company subdivisions. they asked which points make waste during productionprocedure? They wanted to cognize and extinguish any waste of clip and natural stuff during production line. However. altering the working methods which many individual work with it for many old ages has some bitterness among different groups.

the thin squad decided to split their alterations to: 1-layout 2-support system 3-vendor direction 4-cultural alterations. which these alterations caused to better the Kalwa company efficiency. Lean squad had meeting with forces of subdivisions that had more mistakes after thin execution. squad members tried to happen out jobs and seek to work out the issue.

Has Siemen’s Kalwa works been effectual in accomplishing thin execution?

In our sentiment. Siemens Kalwa Plant has been affectional in accomplishing thin execution. The chief contributing factors for an effectual thin execution for Siemens Kalwa Plant are as follows:

• Top Management supply a really good support and clear way. Lead by Global Head. Mr Gewald. Siemens Kalwa Plant General Manager. Mr Khandekarc. Mr Khandekar. showing “walk the talk” by demoing his committedness by closely involved in the execution activity to guarantee the workers understood the aims
• Proper planning in understanding the As is process and to be process. 6 months of impact appraisal and feasibleness survey on Vacuum Circuit Breaker ( VCB ) bing merchandise line procedures
• Thin aims and mark was communicated clearly to the whole squad in Kalwa works. Introduction of Gewald to the store floor workers and office employees to clearly pass on the enterprise and the thin execution aims. Clearly communicate that thin execution to be introduced to merely industry of panels and VCB. Provide clear ground on why the two ( industry of panels and VCB ) waschosen
• Formation of Implementation squad to operationalize and supervise. Siemens Kalwa Plant General Manager. Mr Khandekar as the caput for both the panels and VCB execution squad I. Supported by Mr Vedak for VCB J. Working group from cross functional squad directors and executives
• Site visit to larn from a existent life thin execution. 2-3 squad members and Mr Vedak visited thin works Maruti l. Kandekar and Vedak visited Siemens Switchboard in Turkey
• Appointment of adviser to assist on the thin execution. The adviser provide touchable possible benefitsI. Increased productiveness of laborstwo. Decrease in Inventory Levelthree. Better infinite usen. Knowledge sharing and best pattern based on existent life thin execution from other industries
• Organization are extremely committed and motivated in implementing thin. Group leaders support the workers keeping the gait of the line. Khandekar and his direction squad will go to the splashboard meeting to decide issues. By the actions of 7. a and 7. b. the employee realizes the importance of the enterprise and start to perpetrate themselves in doing it a success. With proper preparation. the employee feels engage and motivated to guarantee the enterprises is a success.

How was the organization’s alteration procedure managed?

Actually this company had different subdivisions which needed to alter during thin direction theory for illustration: store floor. design and technology sections. seller and providers all of these subdivisions work in traditional methods. on the other these company use two different sorts of resources 1- mechanical. 2-electical which mechanical constituents exist in the company warehouse. But ; electrical constituents needs to order and purchase from providers. this company industry in mass customization method.

As a affair of fact alterations had started with cooperation between Mr. Kulkarni with corporate scheme section to happen out executable switchboard portion for execution thin direction in procedure. on the other manus direction replacing occurred ; Mr. Kulkarni was promoted to manager of Medium electromotive force Division and Mr. Khandekar raised to general director for WSWB mill. Following. Mr. Gewald worldwide individual in charge of thin undertaking in the Siemens Switch Boards arrived at the Kalwa mill. and director introduced him to the store floor workers and office employees and they decided to implement thin direction in the VCB company excessively.

In the first measure Vedak and some members of the squad had a trip to the thin works of Maruti and they could understood benefits of thin direction at the same clip some American advisers arrived to the Kalwa mill to collaborate with them in thin direction procedure execution. Initially advisers had a meeting with director and explained for him benefits of thin direction like: addition productiveness. decrease in stock list degrees and better infinite use.

In 2008 khandekar and Vedak visited Siemens site in Turkey and surprised of implement thin direction consequences in company efficiency. Directors needed to reconstitute layout and procedure to implement thin direction. evidently mistakes. inefficiencies and wastes were non clear before execution. during this procedure directors asked every section thought to accomplish efficient ways and cut down following impact between forces. Kalwa Company needs this procedure because entire demands enhanced for their panels. Company must alter exist traditional layout in operating subdivisions that needed integrity among workers and supervisors.

They decided to cultivate workers with wagess if they will catch the adequate production monthly. They decided to fix six work Stationss along their five assembly lines and they made this procedure flexible to utilize leader worker squad to assist the other assembly line ( if necessary ) . As a Mather of fact. it’s necessary to alter support system for new layout. directors used a board at the beginning of every assembly line which describe who are individual in charges? Production characteristics and their measure? And necessary natural stuffs this board called splashboard and aid to the company to happen out the error or failing points during the procedure.

Seriously. providers were one of the most critical parts for their JIT and thin direction. Thin companies need the right portion in a right clip because they do non hold stock list any more. In the beginning there were many incompatibility between company’s operational subdivision and providers which cause to direct meeting between thin squad members with them and squad members describe that it is possible this methods make excess cost for you but in long clip this method will better company production measure and better your merchandising. Mr. khandekar decided to garner every line member ( applied scientists. workers. etc ) as a squad to better their organisation civilization. for experiencing squad belonging he decided to take 30 min for their pray and athletics activity daily.

What opposition did Khandekar face in implementing the alteration and why?

Lean is see one of the most of import success factor in an organisation scheme as one of its chief focal point is to decrease hindrances to the production line in order to guarantee smooth procedure flow by extinguishing waste. As noted in the article. clip waste was apparent throughout the section in the value concatenation and this requires major alterations to the procedure flow. Since this would affect accommodation to the procedure flow and straight impact the manner employees had been executing their undertaking for old ages. it has created bitterness from assorted groups of employees. Finally. most of the sections involved are going defensive of their ain attack and the manner they do their work.

At the beginning of every line there were splashboards installed throughout the store floor. SOE and right to the despatch subdivision. The store applied scientists and workers will post all issues that occurred on the line including the names of the people involved. The mistakes uncovered from assorted sections thru thin system which are overlooked antecedently has formed strong bitterness among the workers particularly for those who weren’t at easiness in acknowledging their errors.

This has leads to workers faulting each other which ended out with het statements among the sections. Furthermore. the construction alteration within the squad. high human intercession in squad activities and deficiency of synchronism between sections has contributed to high Numberss of mistakes. One of the chief grounds that contributed to this opposition isbecause the workers view the thin system as merely another enterprise from the direction.

Furthermore. the workers fillips were entirely dependent on the line’s productiveness. In the event where throughput of the line is hampered due to issues. workers’ productiveness every bit good as their wage will be affected as they need to wait until the issue is resolve and might necessitate to widen their working hours. Therefore. the break was unacceptable and was compounded by the labor brotherhood.

Vendor direction is considered one of the toughest issues and it posed major challenges for Kalwa works. All this piece. sellers were so used to providing in batches the needed stuffs and goods for a big Numberss of orders by a certain day of the month. Thus bulk of the sellers could maximise the cost advantages due to providing stuffs in majority. However. with thin execution. the stuff is merely needed one time the single panel came on the production line since there is no longer needs for stuffs to be delivered by batch or by clients order. The alteration had a huge impact to providers where sellers were required to be invariably reminded of the new agreement and to present the goods the undermentioned twenty-four hours which impede their net incomes since they could no longer work the economic systems of graduated table.

Additionally. the new set up has besides leave an impact to the stuff planning group as they need to set up order for single panels invariably alternatively of telling in majority and necessitate to be in changeless contact with the providers to guarantee the stuff is delivered on clip.

How did Khandekar manage the resistant to alter?

The company faces several challenges despite the benefits of successful execution were attractive. The challenges among others include reconstituting the organisation. acquiring the staff to accept the thin execution and managing the opposition from internal and external stakeholders.

One of the manner Khandekar handle the opposition to alter is byforming meeting to explicate to the employees the importance of following thin to provide the turning demand for panels. This tilt was implemented at the store floor which besides requires the back uping section to follow the thin execution which includes layout alterations. alterations in the support system. alterations in seller direction and cultural challenges. As for the layout alteration. the group leader plays a function to back up the workers in keeping the gait of the line.

The workers will press an “and on” visible radiation which would so illume up another “add on” lamp in the fabrication department’s office in the event there is an issue with respects to the stuff or drawings. The Top stuff planning or the equipment group would run into the worker to discourse the issue and later the visible radiation would be exchange off upon the issue is settled. Khandekar besides attend run intoing with a few other caput of sections to discourse on the issues involve every bit good as those single staff names which is listed on the splashboard.

The meeting which is conducted every afternoon 2 autopsy for an half an hr provides the footing for directors to place figure of panels manufactured for the twenty-four hours. how the line is come oning and place the issues that hampered the line’s advancement. During the meeting. the issues are bit by bit addressed ; the single staffs involved were required to work out the issue by executing 6hkooa root cause analysis. Khandekar besides face challenges to implement the thin as the sellers face job to provide stuffs as and when required when the several panel come on line as antecedently the stuffs were supplied in batches as per the in agreement timeline. Hence. to get the better of this issue. the thin squad visits the sellers and presents the benefit of thin plan.

For short term. it was decided that sellers will fabricate the stuff in majority but bringing of the stuffs as required by the line. Khandekar besides introduce joint supplication and exercising session at each assembly line at the beginning of every displacement. This construct was besides introduced to the forces in office. All the members involved in the thin undertaking were given a Jersey with thin logo which represents the “team effort” which was subsequently introduced to the workers besides to the office staff and direction.

Khandekar besides introduce cardinal public presentation indexs and the workers public presentation fillips are determine based on the in agreement panel produced. i. e. six panels per twenty-four hours per line. The abovementioned solutions were identified and implemented by Khandekar to manage the opposition to alter tosuccessfully implement the tilt at Siemens’ Kalwa Plant.

How was the thin execution institutionalized in the new set-up?

When Siemens AG ( central office ) decided to implement thin fabrication in the Kalwa mill. few initial stairss were taken to guarantee a proper foundation in footings of cognition and apprehension of thin fabrication is first physique in the Kalwa mill. Mr. Gewald. planetary caput for spearheading thin undertaking was brought in to the Kalwa mill to educate the top direction degree on what thin fabrication is all approximately and how it can better and profit the mill. One of first few actions that Mr. Gewald took was to organize a thin execution squad with Mr. Khandekar as the undertaking leader and Mr. Vedak as the thin director. Mr. Gewald with the aid of advisers from United States held few meetings with the direction to explicate the possible benefits of the execution.

Through brainstorming and awareness Sessionss. the adviser squad besides gave presentation on the successful thin execution in other companies particularly at Toyota. Apart from that. Mr. Khandekar and Mr. Vedak besides had a series of mill visits to companies which have completed the execution of thin fabrication. The chief intent of all this meetings. presentation and visits were to make the management’s assurance and turn out how the execution will be good. Making the belief and assurance of the direction is indispensable in guaranting the success of the execution.

As such. Mr. Khandekar and the thin squad realized that they need to reconstitute both the layout and the procedure itself to extinguish non-value added plant. Rather than blindly making the execution procedure. the squad foremost did procedure function for the bing procedure to understand how it works. In the procedure function phase. the thin squad held treatment with the full section in the value concatenation sing their procedure flow.

The result of this activity was procedure flow chart. Next. the thin squad analyzed the procedure flow chart to place all non-value added in the flow. A brainstorming session was done with all the related personal to make up one’s mind the alterations that need to be made to do the procedure more efficient. At this phase the thin squad besides held meetings with all the employees to explicate what thin fabrication is all about and why it is of import for them to follow thin in their workplace. This was an of import action by the thin squad as there were marks of bitterness and agnosticism among the employees. From the first two phases of the execution procedure. alterations that are required to extinguish waste were identified.

The alterations are as below:

1. Layout Changes. The thin squad realized that physical construction of the layout needed to be changed. as there were wastage in footings of workers motion and the flow of the merchandise or stuff. For the layout alterations. the assembly line construct was adopted. Assembly lines with workstations were formed. The clip per workstation was fixed and their work content was adjusted. An efficient flow of the merchandises and worker motion were besides considered in the new layout. Apart from that a communicating system between worker degree and the executive degree was besides created to better response clip.
2. Changes in support system. Apart from layout alterations. thin squad besides made alterations in support system for the production line. The chief thought here is to present ownership construct to the production line whereby the proprietor has to be answerable to all job that arise under his ownership. Splashboards were introduced at the beginning of each assembly line. Any issues in the production line will be highlight in the board with name of the related personal. Meetings will be held on day-to-day bases to supervise all the issues. The splashboard besides will expose daily out of each assembly line to demo advancement in each line. Apart from that skill appraisal of the employees and top direction were besides done continuously to place skill spreads and appropriate preparation are arranged.
3. Change in Vendor Management. Implementing thin fabrication in the Kalwa mill entirely would non be sufficient to extinguish waste. With sellers continuously providing stuff or portion in bulk orders. wastage of storage or stock list infinite occurs in the mill. With the handiness of excess stuff or parts. fabricating error will travel unnoticed. As such. seller direction was besides needed to be changed. The chief thought here is to hold the right measure of parts available at the right clip with the right quality. Vendor will hold to provide each order measure consequently instead that providing in batch. Because of some hard faced with the sellers. short term and long term programs were made. Long term programs are to implement thin rule at the vendor’s terminal. As for short term programs are the execution of pull doctrine of the thin system whereby sellers will fabricate stuff in majority but present it to factory as needed by the line. This is to cut down storage and stock list infinite in the mill. Occurs of fabricating error or defects will come to the cognition of the line directors or supervisors.
4. Cultural Changes. Activities such as joint supplications and exercising session were introduced to instil a sense of squad belongingness among employees. Apart for that unvarying frock codification are besides introduced for the thin execution member to direct the message of squad attempt to all workers and direction staff. Once all the alterations have been implemented harmonizing to the program. the following of import measure that was taken is to supervise the effectivity of the alterations. With the aid of Mr. Gewald. the monitoring KPIs were defined to analyse the effectivity of thin system on the overall public presentation of the mill. A monitoring squad was formed to continuously document. analyze and study on these KPIs to the Siemens AG ( central offices ) on monthly bases.
5. Continuous developing on thin rules. Peoples tend to fear things they don’t understand and in the instance of Kalwa works. it is proven to be true. When thin execution was foremost announced to all Kalwa’s employees. there were marks of bitterness and agnosticism among the employees. This happened because employees didn’t understand what is thin. why the direction wanted to implemented it and what profit do they and the company get. Proper preparation must be provided to all the employees to guarantee their apprehension of thin rules. The enforced alterations can merely last if the employees willing to work harmonizing to the alterations and this can merely be achieved through apprehension. The thin rules must besides be integrated in to the company’s preparation plans for new employees. Continuous appraisal must besides be done to mensurate the degree of apprehension of the employees particularly workers as it is ever hard to make them because of their instruction background. An constitution of thin civilization among all the employees in the company is of import to guarantee the sustainability of all the implemented alterations.
6. Proper certification. Proper certification must be made sing all the implemented alterations. This is of import because there is a possibility that a future betterment can accidentally change by reversal the alteration made now. Believe me ; this tends to go on more frequently than non in the fabrication line. As such proper certification can work as mention to future employees particularly applied scientists when they are doing some betterment. Changes made in the method of working must besides be documented as work criterion as it can work as preparation tool for workers.
7. Regular Auditing. Regular auditing is of import to guarantee that all the alterations in footings of procedure flow and work criterion are followed consequently. Regular audit must besides be done to all related provider and sellers to guarantee their conformitywith the thin rules.

Thin fabrication is designed in such a manner that it will non go forth any room for jobs and errors to conceal if it is implemented right. As such execution of thin fabrication will coerce all wastage. job and errors to come up. The monitoring squad must be assign to continuously supervise for such instance and appropriate action must be taken to work out or better. Continuous sustainability can merely be achieved if betterments are carried out continuously by capable people genuinely understand the manner of tilt.