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Abstract
The purpose of this paper is to provide an insight on the application of flexible lean tools to a local company for restructuring of the manufacturing operations. The study assists managers in the documentation of the value streams, to strive continuously for perfection and to ensure flexibility in restructuring of their manufacturing operations. To conduct the study, both qualitative and quantitative approaches were followed. In documenting value stream map (VSM), a focus group of employees from production, logistics and warehouse departments was involved. The relevant data was collected through interviews and field visits. For improvement of the system, lean tools such as 5S, one-piece flow and electronic information system (els) have been proposed. The lean implementation in the selected manufacturing company yielded waste reduction due to inappropriate processing (39%), reduction in final inventory (70%), reduction in floor area (45%), reduction in manpower (50%), reduction in cycle time (48%), reduction in WIP inventory (83%), and reduction in non-value added time (60%). The flexible lean tools recommended in this research can support practitioners in improving both production efficiency and flexibility in restructuring of manufacturing operations.
Keywords: 5S, cycle time, flexibility, lean manufacturing, one-piece flow, value stream mapping, WIP inventory
Introduction
Manufacturing industries around the world are currently being affected profoundly by globalisation and emerging technologies resulting in a significant increase in competition in local, regional and global markets (Chowdary and Kanda, 2003). This causes rivalry and makes SMEs vulnerable since they are not protected against these new entrants. Moreover, companies recognize that consistent and disciplined application of lean manufacturing strategies with the emphasis on waste elimination and process streamlining can offer flexibility in restructuring of operations towards business excellence (Mejabi, 2003).
The term "lean" was first introduced by James Daniel Jones and Daniel Roos in The Machine that Changed the World' (W#omack et al., 2007) Lean manufacturing is embedded in the TPS and mainly aims at the elimination of waste (Muda). Taiichi Ohno defined "muda" as any human activity, which absorbs resources but creates no value (Ohno, 1988). This insight creates a vision of eliminating waste both within the firm and across the value chain. The basic principle of lean manufacuring is eliminating waste, reducing production costs and instituting employee empowerment. The different types...