kaizen at coretec with vk grover
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Kaizen at CoretecKaizen at Coretec
Presented byNarayan RaoVP OperationsYuken India Limited
How Coretec became a totally transformed Company through major Kaizen efforts
AgendaAgenda
• Introduction to Coretec• Transformation at Coretec:
– The Methodology– Re-layout– Seiton and other Improvements– Introduction of Kanban– Use of barcode technology
• Summing-Up
About CoretecAbout Coretec
• Set up and managed by a senior executive with over 35 years experience (25 years at Yuken)
About CoretecAbout Coretec
• Manufactures iron cores
• Used in solenoid-operated Direction Control Valves manufactured by Yuken India
01 AC
01 DC
03 AC 03 DC
Direction Control Valve
Iron cores
Iron core comes in here
Guidance, WorkshopGuidance, Workshop
• Mr. V.K. Grover, Kaizen Consultant, started guiding Yuken and its sister companies from April 2000
• Initially, training was given in 5-S and in Kaizen concepts including kanban
• A four-day Gemba Kaizen workshop was conducted at these companies from 12th to 15th July 2000
Guidance, WorkshopGuidance, Workshop
• The team consisted of one person from Coretec, and others from Yuken India Limited and Sai India Limited
• The team re-laid out the Factory and initiated most of the changes explained here
• Every Friday afternoon was reserved for continuation of Kaizen activities
Original layoutOriginal layout
Incoming items
Finished items
Assembly , final welding to despatch
Raw material to tube-to-tube weldingStopper welding
MD’s office
Welding
Storage racks
Stor
age
rack
s
Stor
age
rack
s
Storage racks
Enclosure for grinding, buffing
Ultrasonic cleaning
Inspection / AssemblyTesting For backbite
removal
To next shed for air leak test
Return after air leak test
Return after backbite removal
Revised layoutRevised layout
Finished items
Incoming items
Assembly , final welding to despatch
Raw material to tube-to-tube weldingStopper welding
For backbite removal
Return after backbite removal
Welding
Inspection, Assembly, Ultrasonic cleaning
Grinding, buffing
Ultrasonic cleaning, testing
BenefitsBenefits
• Material movement reduced by 10 kms by: – Re-layout– Some operations were brought in– Some operations were closer
• Total floor space released : 40%• Part of the space released used for:
– Enlarging Managing Director’s office by 30%: very cramped earlier
– Providing space for visitors
Arrangement of toolsArrangement of tools
• Tools and equipment required stored neatly near the work place
• Space for keeping rejection and rework items:– Stored by type of
defect
Grinding and buffingGrinding and buffing
• Lot of time was wasted in changing wheels for tip grinding:– Additional bench
grinder procured and located properly
• Dust extractor installed
New fixtureNew fixture
• Copper rods inserted into stainless steel tubes at time of welding
• Removing these rods after welding was manual, time-consuming
• New pneumatic fixture:– Removes copper rod– Inserts into tubes to be
welded next
Right-sized machinesRight-sized machines
• One large ultrasonic cleaning machine used earlier: batches of 50 cleaned at a time
• Now, two small ultrasonic machines clean 6 at a time
New machine
Old ultrasonic cleaning machine including panel
New ultrasonic cleaning
machine (no extra panel)
Testing – before KaizenTesting – before Kaizen
• Testing of iron cores very laborious:– Fill up oil, assemble
to valve body– Manually operate
switch 100 times for each iron core
– Assemble 49 at a time to manifold
– Test one by one for air leak and for movement of the manual pin
Testing – after KaizenTesting – after Kaizen
• New test rig using a hydraulic power pack and a timer mechanism:– Both tests done
separately earlier now combined
– Saving of 3 minutes per iron core
– Higher reliability of testing
Introduction of KanbanIntroduction of Kanban
No more planning!
Kanban from Customer
Kanban to Supplier
Kanban from CustomerKanban from Customer
• Daily supply to Yuken:– Empty trays
collected from Yuken
– Required iron cores produced the same day
– Filled trays delivered to Yuken the next day
Kanban to SupplierKanban to Supplier
• Subcontractors also operate on kanban in a similar way
• Subcontractor visits daily, picks up empty trays and returns filled trays next day
• No more shortages, no more follow-up and tension!
Kanban to SupplierKanban to Supplier
• Kanban through trays operates even with a supplier located at Harihar, 350 kms away from Bangalore
• Trays sent by bus overnight and returned in 2 – 3 days
Benefits from KanbanBenefits from Kanban
Item Before Kanban
After Kanban
Reduction %age
Iron Cores at Yuken & Coretec
Rs. 0.4 million
Rs. 0.02 million
95%
Raw materials and components
Rs. 0.82 million
Rs. 0.4 million
52%
Total inventory Rs. 1.22 million
Rs. 0.4 million
66%
Benefits from KanbanBenefits from Kanban
0.82
0.4
0.4
0.02
0
0.2
0.4
0.6
0.8
1
1.2
1.4
Before After
Finished Iron CoresComponents
All values in Rupees millions
Use of barcode Use of barcode technologytechnology
Material movement fully computerised:
No more manual material accounting and reconciliation!
Bar-code technologyBar-code technology
• All trays affixed with bar code stickers
• Trays scanned:– Incoming– Outgoing
• Automatic generation of DC’s and MRNs
• Analysis of tray (and therefore material) movement easily possible
Future PlansFuture Plans
• Buy a small lathe so that components do not go out for removing weld “backbite”
• Use the same welding transformer to run three independent welding stations so that true one-piece flow can be implemented
The Last WordThe Last Word
• Mr. T.R. Prasanna, the Managing Director of Coretec feels that Kaizen has made his Company run by itself and left him free to plan for expansion and further growth
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