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ABSTRACT
Purpose
The forging industry in India, largely comprising MSMEs, is highly unorganized, leading to substantial wastes in the processes. These units are now in direct competition with similar units across the world. In order for these units to have a sustainable competitive advantage, these units need to leverage the potential of their employees, establish a continuous improvement culture, improve their processes and leverage on their knowledge to make their operations highly efficient and eliminate their wastes. Lean methodology has the power to address all these issues.
Design & Methodology
The case study methodology has been adopted in this paper to explain in detail the step wise process of lean implementation in a forging MSME.
Findings
Lean implementation in MSME has resulted in vast improvements in labor productivity, throughput, customer delivery, quality and changeover time, which are detailed in the paper.
Implications
This paper provides a step wise process of lean implementation in a MSME in forging industry, right from diagnostic stage to project implementation. Entrepreneurs in MSME sector who find LEAN intimidating could get motivated with this case study and embark on adopting lean techniques to make their operations world class.
Limitations
The findings of this paper are based on case study of lean implementation in a forging MSME. Similar implementation, in other industries could result in a different set of findings, based on the environment and culture existing in those units.
Originality / Value
This case study bridges the gap between knowledge of lean and skills of implementing lean, especially in a forging industry. It can guide lean practitioners in similar implementation.
Keywords: Lean, MSME, Deskilling, 5S, SOP, Visual management, MSME
1.INTRODUCTION
1.1. Objective
The Make in India initiative launched by Prime Minister of India in September 2014 aims to transform India into a manufacturing hub of the World. With more than 36 million MSMEs forming the lowest denominator of the supply chain, the effectiveness of this initiative is directly dependent on the competitiveness of the MSMEs. With 'Make in India' and startup initiatives, the MSME sector will significantly emerge contributing to the economic development in the next few years. 'Productivity' in this sector is vital for their efficient operations, as higher operating margins can ensure sustenance and supply the capital required...