Reduced W-I-P Exposes Problems

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Increased return on investment

Cost reduction through


Better adaptability reduced
Quality improvement
to market Inventories mainly, and other
unnecessary things

Just-in-time production

Vendors Smoothing of production Kanban Information system

Yo-i-don
Reduced Suitable
Small pacing, quality
W-I-P equipment &
lot size consciousness
Exposes layout
& teamwork
problems
Short Multifunction Standardized
Setup worker Jobs
Time
Problem
Solving by
Labour & mgt
Through quality
Circles, etc.
Lucas TVS
• Lucas - TVS established in 1961 as a joint venture between
Lucas UK and T V Sundram Iyengar & Sons (TVS), India to
manufacture Automotive Electrical Systems. Lucas-TVS is the
leader in Auto Electricals in India today with 48 years
experience in design and manufacturing. 4 out of 5 vehicles
rolled out daily are fitted with Lucas-TVS products.

• First JIT Grand Prix winner outside Japan and Korea in 2003,
awarded by JIT management Laboratory Co. Japan. The award
is given to a company that has successfully adopted and
practiced JIT techniques over the years.

• JIT implementation began in 1985, much ahead of several


other manufacturers in India.
Manufacturing Organization
Lucas TVS

Five Step process

• Step 1: Building awareness among


employees.
• Step 2: 5S for factory improvement.
• Step 3: Flow manufacturing.
• Step 4: Levelling.
• Step 5: Standardised operations.
Methodology
Manufacturing Journey
Lucas TVS
• By implementing Kanban, inventory in the system was reduced even when
production was increasing and better control of processes was possible. Eg:
Wiper motor cell would receive parts such as motor and casing only when
it sent a Kanban card to the internal supplier.
• Lean and efficient operation at Lucas.
• Better prepared to absorb sudden changes in customer order, drop in
demand or even price pressures.
• Sales per employee increased from Rs. 1.96 lakh at the time the JIT
implementation process began to Rs. 13.80 lakh in 2002.
• Rejection rates came down from 10 percent to below 1 percent.
• Scrap rate is at 0.8 percent compared to 3 percent.
• Employees make 400 suggestions every month.
Journey Towards Excellence

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