22. Jul. 2016

Operational excellence in process industry

by Jayanth Murthy

With hypercompetitive market environment, the competition is getting intense. Increasingly organizations from all sectors & all sizes are looking at Kaizen/ Lean to eliminate waste across their value chain which ultimately helps them drive costs down and deliver quality goods & services to customers. This white paper is an attempt to capture the applicability & importance of Kaizen/ Lean to the process industry.

Kaizen/ Lean is considered to be readily applicable only to discrete/ product manufacturing companies. People from continuous process plants/ businesses shy away from KAIZEN™ and often consider it irrelevant. Total Productive Maintenance (TPM®) has made great inroads into the process industry but TPM® combined with classical Lean results in greater benefits.

While TPM®, as per JIPM, can be very powerful but many times TPM® is partially understood & partially deployed. The results are normally related to OEE/ MTTR/ MTBF improvements while this has impact on throughput time & inventory, nevertheless its indirect.

Classical Kaizen/ Lean

KAIZEN™ focuses on waste elimination while TPM® focuses more on higher asset utilization. This is debatable; however the need for classical Lean in process industry is high. This results in shorter manufacturing throughput time and thus reducing inventory in pipeline related benefits.

Actions recommended:

1.       Current state analysis & setting goals for future state.

2.       Balancing the line so as to create smoother throughput.

3.       Finding ways & means to eliminate temporary storage, staging, holding vessels.

4.       Eliminating redundancies in equipment by improving reliability.

5.       Potential for reduction in cleaning/ changeover/ startup time.

Conclusion

KAIZEN™ / Lean have a tremendous scope in process environment.

  1. The first visible change is to create a dust free work environment.
  2. It has been observed, over & above TPM, Kaizen/ Classical Lean in the improvement program of process industry results in ~30% reduction in cost of production/ conversion.
  3. This directly adds to the bottom-line while simultaneously customers receive on time delivery & high quality products.

In case you missed it, our last post was about “A Japanese technique for overcoming laziness.”

And, if you wish to read & learn more from our blog, click here to follow our blog by subscribing the same.

Recent Posts

 

30. Oct. 2018

KAIZEN™ for Newbies

by Narasimhan Gopalkrishnan, Senior Consultant, Kaizen Institute India

 

23. Oct. 2018

Establishing a Standard Work Chart

by NARASIMHAN GOPALKRISHNAN-SENIOR CONSULTANT AT Kaizen Institute INDAF

 

09. Oct. 2018

Problem Solving

by NARASIMHAN GOPALKRISHNAN-SENIOR CONSULTANT AT Kaizen Institute INDAF

 

Popular Posts

 

05. May. 2015

SDCA before you do PDCA

by KII

 
 

02. Jun. 2014

16 types of loss in Gemba

by KII

 
arrow up