Intermediate 5s

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Table of Contents 1. CHAPTER 1 - INTRODUCTION............................................................................................ 3 1.1. Organization Profile.............................................................................................................4 1.1.1. Key milestones................................................................................................................5 1.1.2. Quality System ...............................................................................................................6 1.1.3. Meridian Industries Limited merges with Precot............................................................6 1.1.4. Corporate / Central office................................................................................................6 1.1.5. A-Unit..............................................................................................................................7 1.1.6. B-Unit..............................................................................................................................7 1.1.7. C-Unit..............................................................................................................................7 1.1.8. D-Unit..............................................................................................................................7 1.1.9. About Precot C................................................................................................................8 1.1.10. About Precot D..............................................................................................................8 1.1.11. General Information.......................................................................................................9 1.2. Product Profile ......................................................................................................................10 1.2.1. Slub Yarn.........................................................................................................................10 1.2.2. Organic Yarn...................................................................................................................10 1.2.3. Compact Yarn.................................................................................................................11 1.2.4. Elitwist / Compact Yarn..................................................................................................11 1.2.5. Polyster Cotton Blend.....................................................................................................11 1.3. Production Process ...............................................................................................................12 1.4. Research Problem statement ...............................................................................................13 1.5. Objective of the project.........................................................................................................13 1.6. Research methodology .........................................................................................................13 1.6.1. Definition........................................................................................................................13 1.6.2. Research design..............................................................................................................13 1.6.3. Population ......................................................................................................................14 1.6.4. Sample size ....................................................................................................................14 1.6.5. Questionnaire design......................................................................................................14 1.7. Method of data collection......................................................................................................14 1.7.1 Primary data.....................................................................................................................14 1.7.2 Secondary data.................................................................................................................14 1

1.8 Limitations of the project.....................................................................................................15

2. CHAPTER 2 – THE CONCEPT OF 5S………….................................................................16 2.1. Literature overview...........................................................................................................16 2.2. 5S Systematization.............................................................................................................21 2.3. How You Can Use 5s to Increase Productivity? ............................................................22 2.4. 5s workplace organization................................................................................................23 2.5. Target Outcomes and Benefits.........................................................................................24 2.6. Visual workplace...............................................................................................................25 3. CHAPTER 3 - DATA ANALYSIS AND INTERPRETATION........................................26 3.1 Data Collection……………………………………………………………………………. 3.1 Seiri-Sort Analysis.............................................................................................................34 3.2 Seiton-Set in Order Analysis............................................................................................35 3.3 Seiso-Shine analysis...........................................................................................................35 3.4 Seiketsu-Standardize analysis..........................................................................................36 3.5 Shitsuke-Sustain analysis.................................................................................................36 4. CHAPTER 4 - SUMMARY, FINDINGS AND SUGGESTIO ........................................37 4.1 Summary................................................................................. ..........................................37 4.2 Findings.............................................................................. ...............................................38 5.3 Suggestions.........................................................................................................................39 BIBLIOGRAPHY........................................................................................................................40 ANNEXURES..............................................................................................................................43

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CHAPTER 1 INTRODUCTION

This research is on the topic “A project on improving productivity through 5S system at Precot Meridian LTD, Walayar” In the present competitive market Precot Meridian is one of the pioneer companies in the yarn manufacturing industry. It is one of the companies having implemented 5s which reflects in their overall performance and quality of the product. This project is to find out the effectiveness of 5s and its benefits in an organization like Precot Meridian ltd. They have been practicing 5S in the organization for the last 5 years. And the production and performance was in its peak when the 5S is in effect. This project is trying to find whether the 5S is effective at present compared with the previous years. The data collection of this project is done through observation and direct interview conducted in production and operations department of the company. The other information available for this project was the company’s records and manuals. This project gives an insight to the company’s present situation of effective housekeeping through the implementation of 5S system. The goal for this project is to let people realize about the importance of good housekeeping, especially in manufacturing plan. Many people think that housekeeping should be done by housewives at home, and cleaners at work. They do not realize that they, too, play an important part in keeping their houses/workplaces clean. More importantly, they do not know how much they can gain for themselves by just practicing good housekeeping. Whether work in an office, the factory, the warehouse, the laboratory or any other place, housekeeping is relevant to every people. Good housekeeping is important as it can create an environment in which even minor abnormalities and mistakes will be obvious. Plus, it will produce an easily managed, safer and more pleasant environment. In industry, a clean, well-ordered and attractive work environment will help to encourage tidy work habits in employees. It helps reduce fatigue. It will promote good worker-management relations. It also gives a lift to morale, which is reflected in the quality of production and overall efficiency. It can stimulate efforts to improve productivity through better use of people, space, 3

equipment, time and material. Good housekeeping is also a good advertisement for every company. It is because customers and clients will have more confidence in an organization when their works is being carried out efficiently in clean, pleasant, well-ordered work surroundings. Good housekeeping portrays professionalism and efficiency to others. It can be expected that the standards displayed in the environment will be reflected in the product The more important reason why good housekeeping matter is it makes the undertaking a safer place to work in. Good housekeeping is a main factor in preventing accidents. Majority of all work accidents are caused during the handling of goods or materials, and by people falling, being hit by falling objects, or striking against objects in the workplace. All these causes can be reduced by good housekeeping practices. In fact, good housekeeping is the only cure for hundreds of accidents that occur. The 5-S framework was originally developed by just-in-time expert and international consultant Hiroyuki Hirano. The 5S framework is an extension of Hirano's earlier works on just-in-time production systems. The 5-Ss represent a simple "good housekeeping" approach to improving the work environment. In general, the 5S approach includes the controls the work floor conditions rather than the worker's behavior. It makes the worker's job easier and safer. It promotes daily activity for continuous improvement. It fosters efficiency and productivity while improving work flow. It encourages a proactive approach that prevents problems and waste before they occur. It provides a practical method for dealing with the real problems that workers face every day. And it fits with a facility's other efforts, such as total preventive maintenance, just-in-time manufacturing, pollution prevention, safety initiatives, and lean manufacturing efforts.

1.1. Organization Profile Precot Meridian is one of the oldest groups which started its mill in 1958, promoted by N.Damodaran. Precot Meridian limited (PML) was incorporated in 1962 in Palakkad, Kerala, to produce cotton yarns with an initial capacity of 12096 spindles. Precot Meridian limited made its maiden issue in 1962. Production of cotton yarns commenced during 1964.The Precot has symbolized Quality and Trust in 4

the textile industry. With four decades of spinning experience and a diverse range of products that include cotton yarns, knitting threads, fabrics and garments. Precot is one of the few total integrated with a total turnover of 90 million US Dollars. The Group has state of the art infrastructure facilities and skilled personnel to rise up to customer expectations. The group has been accorded the status of ‘Export House’ by The Cotton Textile Export Promotion Council of India (TEXPROCIL). Precot exports its products to Belgium, China, Italy, Japan, Malaysia, Portugal, South Korea, Turkey and U.K. 1.1.1. Key milestones: - From an initial capacity of 12,096 Spindles at Kanjikode, Kerala (A-Unit) in 1964, now the capacity of the unit is 57,600 spindles. - In 1983, the second unit (B-Unit) was set up at Hindupur, Andhra Pradesh with an initial capacity of 28,800 Spindles and the current capacity is 69,120 spindles. -In 1992, the third unit (C-Unit) was set up at Walayar, Kerala as a 100% Export Oriented Unit with a capacity of 12,096 Spindles and the current capacity is 25,344 spindles. In

1995, an OE Unit (D Unit) was set up at Walayar adjacent to its third Unit with a capacity of 1344

Rotors. In

1998, a yarn dyeing Unit (K Unit) was set up at Kolar, Karnataka to manufacture polyester knitting

threads and its capacity is 7 tons per day. In

January 2004, yarn dyeing operations were started at Perundurai, which caters to the needs of the

Sethumadai unit. In

2006, Meridian Industries merged with Precot Mills and the name was changed to Precot Meridian

Ltd., and the current capacity is 66,154 spindles. Precot

Meridian is looking towards green power generation and has invested in 17 Windmills. These

windmills cater 50% of the power requirements of units located in Tamil Nadu.

5

1.1.2. Quality System Precot Meridian being an ISO 9001 certified company is focused on providing the finest quality yarns and fabrics. In order to meet customer requirements and to ensure their satisfaction, Precot Meridian implemented TQM in all the units for executing ‘5S’ methods of housekeeping and 3M methods to control wastage of resources. Quality System is achieved through total employee involvement, technical In Marat ion and continual improvement. 1.1.2. Meridian Industries Limited merges with Precot Meridian Industries Limited has been merged with Precot Mills Limited with effect from 01st April, 2006. Meridian Industries Ltd (MIL) which was incorporated in the year 1993 was promoted by Precot Mills Limited and around 70% of the shares of MIL were held by the shareholders of Precot. To have larger capacity in a single company, instead of the capacities being spread over in two companies having common shareholders, the merger was proposed. This has been approved by the High Court of Madras vide its order dated 30th August and 1st Sept, 06. As per the scheme of Merger, the shareholders of MIL are entitled for one share of Precot for every two shares of MIL. Accordingly the share certificates of Precot were dispatched in Dec, 06 to those shareholders who have surrendered the certificates of MIL. Shareholders of MIL, who are yet to claim the certificates of Precot can, do so by sending the MIL certificates along with the following application duly filled in to the registrars.

1.1.3. Corporate / Central office Corporate office is situated at “Suprem” P.B No: 7161737, Pulikulam Road, Coimbatore-641 045.Corporate office deals with raw material purchase, testing, approval and allotment to group mills. In addition to that finalization of sales contract, approval of production-planning, policy decisions etc. are also taken at corporate office. 1.1.4. A-Unit Unit A is located at Kanjikode west, Palghat, Kerala and was established in the year 1964.the area used 6

is 2 Hectors surrounded by 15 Hectors of its own land. Present Spendlage of the Factory is 57600,working 24 hours in a day and 7 days in a week and Spinning Hosiery yarns, warp and weft yarns and doubled yarns counts ranging from 30s to 100s combed and cradle varieties. All are ring spun yarns only. 1.1.5. B-Unit B unit is at Kodigerahalli, H.S.Mandir, Hindupur (post), Andra Pradesh and won established in the year 1983.Mill is located in an area of around 5 Hectars. Present installed capacity of the mill is 72000 spindles engaged in manufacturing of ring spun yarn and working 24 hours a day and 7 days a week continuously. 1.1.6. C-Unit C-Unit is at Chandrapuram, Walayar Dam (post), Palghat (Dist), Kerala. Unit was established in the year 1992.Factory is build up in an area of 9600 square meter. Present spindlage of the unit is 24720 company produces yarn ranging between 20s Ne to 40s Ne in both 100% Cotton Combed varieties to suit different end uses. At present the yarn produced from the mil is being widely used for knitting (Banyan’s and Knitwear). 1.1.7. D-Unit D-Unit is situated at Chandrapuram, Walayar Dam (post), Palghat (Dist), Kerala and was established in the year 1995. This is located in an area of around 5.3 Hectors. Present capacity of the factory is 1344 roller; manufacturing yarn ranging between 60s Ne in both 100% Cotton and Processed wastes in carded and combed varieties to suit different end uses. At present the yarn produced from the mill is being widely used for Industrial fabrics and bed sheets.

1.1.8. About Precot C Founder of the Group: Sri.V.N Ramachandran (Late) Sri.N.Damodaran

7

-

Chairman &Managing Director: Sri.D.Aswin Chandran

-

Starting of the Mill: January 92

-

Total Spindles Installed: 24624 Spindles (9*1056) (1008*15)

-

Raw-material: Cotton and Polyster staple fiber

-

Count of yarn processed: 34s to 40s cotton combed knitting yarn

-

End use of products: Sportswear, Casual wears

-

Raw-material used: Raw cotton, Polysters staples

-

Exporting countries: U.K, Germany, Isreil ,Mauritius, Singapore, Malaysia and Portugal

-

Number of workers in the mill: 105 permanent workers

1.1.9. About Precot D

-

Mill started on: October 95

-

Total rolors installed: 960 (4*192) (96*2)

-

Count of yarn manufactured: 10s OE, 16s OE, 20s OE

-

End use of products: Weaving, knitting

-

Raw-material used: Raw cotton and Noils/Flat strips

-

Yarn sold in Local: 30% Export: 70% 8

1.1.10. General Information

Shift Timings - Precot C: Morning - 8.00 AM to 4.30 PM - I shift Evening - 4.30 PM to 1.00 AM - II shift Morning - 1.00 AM to 8.00 AM - III Shift Other Facilities, Regulations: -

Cycle shed provided for keeping vehicles

-

ERC functions all 24 hrs and provides food.

-

When an employee enters the mill we has to collect the card from the security main gate and handover the same at gate while leaving.

-

Dormitory is provided for ladies inside the mill promises with mess facility.

-

A lady matron is appointed to core the needs of girls.

-

Smoking is strictly prohibited inside the mill premises.

-

Creche is provided to cater the needs of working women’s children.

-

First aid boxes are provided with required medicines inside the department and HRD department to meet any accidents on work. 9

-

SIC’s / Supervisors are present in all shifts to manage workers.

-

Uniform is Supplied to all operatives and non – Operatives.

1.2. Product Profile Precot Meridian manufactures and markets high quality yarns like Slub Yarn, Organic Yarn, Compact Yarn, Elitwist Yarn, etc to domestic and international clients. 1.2.1. Slub Yarn Slub yarn is manufactured with the technical support of CAIPO, Italy and LAKSHMI, India. Precot Meridian manufactures all types of slub yarn - short, medium long, extra-long and reverse slub yarn. Slub yarn comes under the fancy yarn domain as it creates certain visual effects in the resulting fabric. Slub yarn fabric is characterized by an uneven surface; simple colors seem appealing because of the regular change in texture right through the fabric. 1.2.2. Organic Yarn Producing yarn that is certified as being organic involves a long procedure committed to eco-friendly practices at various levels. The cotton used to produce organic yarn is grown on farms that adhere to farming practices wherein chemical herbicides, growth-stimulants and pesticides are not used. Sustainable agricultural practices are put into use to ensure that the cotton used is 100% organic. Precot Meridian sources this organic cotton at premium prices in order to ensure that the yarn manufactured is also organic. This is certified by Control Union, Netherlands. This certificate is renewed each year under the guidance of Control Union Netherlands after a strict audit process. Apart from the measures taken to ensure the organic quality of the yarn, due care is taken to comply with safety, labor and other mandatory issues, while producing organic yarn. 1.2.3. Compact Yarn 10

Precot Meridian has introduced a Marel way of reducing the extra hairiness that characterizes conventional yarn. Conventional yarn spinning techniques result in low strength and irregular appearance. This is overcome by the world class SUESSAN COMPACT which uses the compact spinning technique. This ensures that the yarn produced has quality characteristics such as evenness, tensile strength and lowered hairiness. 1.2.4. Elitwist / Compact Yarn Elitwist / Compact yarn is used in specialist applications. The technology used has the tendency to reduce the twisting triangle in the spinning machine. Elitwist yarn can withstand heavy loads because of its increased strength and elongation. It maintains a good luster as the hairiness is fairly low. The enhanced strength of Elitwist yarn makes it a favored product with customers. Warping breaks are reduced a great deal and sizes can be changed without too many cost implications. It also lends itself to extensive dyeing possibilities. Precot Meridian as one of the most well known manufacturers of polyester knitting thread, produces a wide range that suit the varied needs of end users. Both two ply and three ply yarns that range from Ne 20 to Ne 60 are manufactured. 1.2.5. Polyester Cotton Blend Precot Meridian manufactures a wide range of polyester cotton blends ranging from Ne 30 to 40. Two different cotton blends manufactured include 40/60 and 50/50 poly cotton. These products are well known for their quality and the ultimate fabric appearance is an important factor for PC blends.

1.3. Production Process

Cotton Go-down Blow Room

11

Carding Pre-comber Drawing Lap Former

PREPERATORY

Comber Finisher Drawing Simpler SPINNING AUTO CORNER Yarn Conditioning Plant (YCP) PACKING Yarn Go-down Dispatch

1.4. Research Problem statement For any company it is easy to implement a new policy, procedure or a system, but the success those systems are determined by the adoption and sustainable in effectiveness. Precot Meridian ltd. is unaware about the effectiveness of 5S implementation on improving production efficiency. This project is trying the effectiveness of 5s system in Precot Meridian ltd.

12

1.5. Objective of the project The objectives of this project are: - To find out the method for improving productivity of the 5S system. - To find out the influence of 5S implementation in production process. - To find out and analysis various work environment changes made by 5S system. - To find out the effectiveness of housekeeping system in a company.

1.6

Research methodology

1.6.1. Definition The process used to collect information and data for the purpose of making business decisions.

The methodology may include publication research, interviews, surveys and other research techniques, and could include both present and historical information. 1.6.2. Research design A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose .It is a blue print of the project. Descriptive research design was used in this project for analysis. 1.6.3. Population

The employees of PRECOT MERIDIAN LIMITED textiles in Walayar.

13

1.6.4. Sample size

The size of the sample selected for the project is 40 respondents

1.6.5. Questionnaire design

The questionnaire was prepared by the researcher itself for direct interview. It was for collecting the details from the researcher perspective 1.7. Method of data collection Two types of data were collected: primary and secondary to facilitate this project. Primary data refers to direct information from daily operations of production department while secondary data are administrative records and prior research studies that support this project. Part of the primary data comes from observations interviews and discussions with employees and supervisors. 1.7.1 Primary data Primary data is collected through observation method right at the time when the activity is being carried out. The flow time and flow speed is recorded and calculated to derive the primary data.

1.7.2 Secondary data The secondary data is collected from the company production schedule and records.

1.8 Limitations of the project - Only regular employees were taken into account for the project - Incorrect opinion expressed by the respondents may affect the outcome of findings. - The survey is purely based on the opinion of employees, which may be biased at times. 14

CHAPTER 2 The Concept of 5S 2.1. Literature overview There were four activities in the Japanese system. These activities, each beginning with the letter S, were: 1. Seiri (sort) 2. Seiton (set in order) 3. Seiso (shine) 4. Seiketsu (standardize) 5. Shitsuke (sustain) After that, a fifth activity was added which called Shitsuke (sustain), they are now known as 5S. Based on five Japanese words that begin with 'S', the 5S focuses on effective work place organization and standardized work procedures. 5S classifies the work environment, reduces waste and non-value activity while improving quality, efficiency, and safety. These processes can increase morale, create positive impressions on customers, and increase efficiency and organization. 5S makes employees feel better about their work environment. This improvement leads to less waste, better quality and reduced lead times. Any of these benefits will make a company more profitable and competitive in the market place. Before a company implements the 5S, they should know what 5S are and why 5S. A lot of companies feel that they should do 5S first in order to go lean. Some proven reasons for this: 5S is clear, easy and gets people's attention. Yet, there is no rule to ask where to start. Begin 5S implementation when there is a reasonable point within a company. Let employees understand what the purpose is and how to follow it. Do not use 5S just because everyone else is doing it; 5S is not a trend towards fashion. When a company wants to implement 5S, just like anything new for the company, a leader should describe what 15

5S is and how it will be utilized1. A '5S' driven workplace enhances productivity and competitiveness and fosters a productivity culture through a continual process of identifying, reducing and eliminating MUDA (Japanese for Waste). '5S' helps to: (a) Identify, Reduce and Eliminate MUDA (b) Organized & World Class Gemba (Workplace) (c) Enhancement in Productivity & Competitiveness (d) Better Living and improved work life

2.2. 5S Systematization Upadhye2, in his book describes, “Quality as fitness for use. He discusses that quality as conformance to requirement and non-quality as nonconformance. Quality can take many forms. Quality can be summarized as terms of an excellent product and service. There are three term in quality, Quality of design, Quality of conformance, and Quality of nonconformance. Quality of design means the product has been designed to successful fill a customer need, real or not perceived. The design should be an excellent product or service that fulfills or exceeds customer expectation. Quality conformance means, conformance to requirement. Refers to the manufacture of the product or the service that meet the specified requirement set by the consumer. Quality performance, means, that the product or service performs its intended function as identified by the consumer”. In the Webster’s New World Dictionary “quality is defined as physical or nonphysical characteristic that 1

R. R. Fisher, and K. Kobayashi, Implementing 5S within a Japanese context: an integrated management system.

Management decision 2008. 46(4): p. 565-579. 2

Upadhye et al. Lean manufacturing system for medium size manufacturing enterprise: An Indian case

International journal of management science and engineering management. Vol.5 no.5 pp. 362-375, 2010.

16

constitutes the basic nature of a thing or is one of its distinguishing features. Shewhart, said that there are two common aspects of quality, one of these has to do with the consideration of the quality of a thing as an objective reality independent of the existing of man. The other has to do with what we think, feel or sense as a result of the objective reality. This subjective side of quality is closely linked to value. It is convenient to think of all matters related to quality of manufactured product in terms of these three functions of specification, production and inspection (Grant and Leavenworth, 1988). Quality is fitness for use, (Juran, 1989). Quality is conformance to requirements (Crosby, 1979) and quality should be aimed at the needs of the customer present and future (Deming 1986)”. SEIRI (sorting and disposing unnecessary items) Deals with sorting all the tools, materials and other equipment in the workplace. Important equipment is stored accordingly, which reduces the hazards at the work place. SEITON (everything is set in order, provide a place for everything).Identifies the need of the worker. Tools, materials and other equipment should be arranged systematically for quick access and movement.3 SEISO (shining, cleaning, removal of waste and dust) Points out the need and necessity of clean and neat work place. Cleaning should become a daily activity. Work place should be cleaned at regular intervals (generally at the end of the shift or once in 3hours). Every tool and equipment should be restored at their own places after their use. SEIKETSU (consistent and standardized work environment with unique rules of organization and storage along with cleanliness).Everyone should know his or her responsibility. Cleaning should become a part of regular work routines. This helps in having a good control over the production. SHITSUKE (Sustain, realization of the above set of rules in order). Maintain these standards continuously for years. Implementing 5S should begin from educating the workers about 5S and its importance. It is mandatory that every worker should understand the need of 5S and its advantages. Workers should be provided with an example for all the 5S’s, which makes it easy to understand. It is very important to understand the fact that this methodology do not refer only for the production team but also refers to stores (warehouse) and other office teams. It is better to supply a 5S pocket guide to 3

Ab Rahman, M.N., et al., Implementation of 5S Practices in the Manufacturing Companies: A Case Project.

American Journal of Applied Sciences, 2010. 7(8): p. 1182-1189.

17

the workers such that they could clarify their doubts by reading it”. Dr. M Hudi4, well-known consultant and author on the subject of quality said: “Quality as non faulty system” Dr. Deming stresses that quality efforts should be directed at the present and future needs of the customer. In other words, customers do not necessary know what they want until they have seen the product or received the service”.

2.3.

How You Can Use 5s to Increase Productivity?

5s is a process using 5 different phases needs to be implemented into the workplace. First things need to be as first. You don’t want to improve something that is not needed into your daily working routine. As a first you need to start with the Seiri, sort everything around you in your workplace. Sorting means to find everything around you and eliminate everything that you don’t need in your work. Use following question to help you start with the sorting: What I have around me in my working place? Do I need it? What items I need to eliminate? When you eliminate everything that you don’t need, and you know how important a specific item that you need is, you can start making order (Seiton). Make a place for everything and everything should be in its own place ensuring easy availability when you need specific items. Answer following question because they will help you in this phase: How much important is a specific item for my work? How much times I use each of the items on a daily, weekly and monthly basis? Is the item on the right place? What I need to do when I need a specific item? Is it the movement that I make when I need a specific item optimal? Is the place where each item is placed is the right place for my working routine? Where each item will be placed? How the places will be labeled?

4

M. Hudli and K.H. Imandar, Areas of Lean manufacturing for productivity improvement in a manufacturing

unity, world academy of science, engineering and technology vol. 69, 2010

18

Now, when you eliminate everything that you don’t need, everything has its own place, and everything is in its own place you have much better workplace around you. Next thing that you will need is cleaning routine (Seisi). Clean work environment is much more productive than disorganized and dirty workplace. At the end of each workday you need to clean your workplace in such a way that everything will be on its own place, prepared for your tomorrow use. When you know what you need, where it needs to be placed and how to keep things organized and clean you need to standardize that work practices (Seiketsu). This methodology is not one-time show that you will implement and forget. You need to standardize practices from the first three S into your working daily routine. In such a way, you can easily and quickly improve your workplace to be more productive5. Once, when the first four S is established and implemented as something normal in your daily working routine, you will need to check and review the process to find the better ways to organize stuff around you (Shitsuke). To find what’s the best time to review your standard procedures to maintain and to improve your workplace.

2.4.

5s workplace organization

5S is one of the most widely adopted techniques from the lean manufacturing toolbox. Along with Standard Work and Total Productive Maintenance, 5S is considered a "foundational" lean concept, as it establishes the operational stability required for making and sustaining continuous improvements. The primary objective of 5S is to create a clean, orderly environment- an environment where there is a place for everything and everything is in its place. Beyond this, many companies begin their lean transformation with 5S because it exposes some of the most visible examples of waste it also helps establish the framework and discipline required to successfully pursue other continuous improvement initiatives.

5

M. Hudli and K.H. Imandar, Areas of Lean manufacturing for productivity improvement in a manufacturing

unity, world academy of science, engineering and technology vol. 69, 2010

19

2.5.

Target Outcomes and Benefits:

-

Reduce non-value adding activity

-

Reduce mistakes from employees and suppliers

-

Reduce time for employee orientation and training

-

Reduce search time in navigating the facility and locating tools, parts and supplies

-

Reduce parts stored in inventory, and associated inventory carrying costs

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Reduce unnecessary human motion and transportation of goods

-

Improve floor space utilization

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Improve employee safety and morale

-

Improve product quality

-

Extend equipment life through more frequent cleaning and inspection 5S produces measurable benefits. One of the surest ways to identify these benefits is to establish and track specific metrics. For example, measure the time required to locate items in the workplace before 5S and then measure the time required after the workspace has been improved. Longer term benefits can also be measured by monitoring the amount of workplace injuries reported after 5S has been implemented. Not only May workplace injuries decrease, but training costs may, too. It is easier and faster to train employees in a work area that is orderly and wellmarked. Another way to measure 5S benefits in the workplace is to take pictures. Pictures are very effective at visually highlighting the improved appearance and order in the workplace. Concrete measurements are a complement to the pictures, fueling the momentum needed to sustain 5S. 2.6.

Visual workplace

Visual Workplace – also known as Visual Factory or Visual Management – is a concept that emphasizes putting critical information at the point of need. Visual devices are critical to moving from traditional manufacturing to lean manufacturing. In fact, Visual Workplace serves as the key 20

sustaining force in these initiatives, because it ensures that lean improvements remain clearly visible, readily understood, and consistently adhered to long after the 5s event is over.

Fig. 2.1.Visual Workplace6 Source: Kazuo Tsuchiya, Freddy Soon: The Practice of Good Housekeeping (5S & 5s), Productivity and Standards Board, Singapore 2008, p. 128 The effective implementation of visual systems has been documented to generate the following dramatic improvements: -15% increase in throughput - 70% cut in materials handling - 60% decrease in floor space - 80% decrease in flow distance - 68% reduction in rack storage - 45% decrease in number of forklifts - 12% decrease in engineering cycle time - 50% decrease in annual physical inventory time - 96% decrease in defects

Kazuo Tsuchiya, Freddy Soon: The Practice of Good Housekeeping (5S & 5s), Productivity and Standards Board, Singapore 2008, p. 128 6

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CHAPTER 3 DATA ANALYSIS AND INTERPRETATION

In this chapter we will analyze the data collected through the respondents before the company wasn’t aware of 5s methodology and after the implementation of 5s technique. Both the data’s will be analyzed in order to find out how implementing 5s improved productivity and efficiency of a Precot Meridian Ltd. In order to begin with analysis first we will check the state of Precot Meridian before implementing 5s in their organization. Table 3.1 5s score sheet before 5s implementation

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3.1 Data Collection: Before 5s

(a)

(b)

Figure 3 (a, b): Manual Processes are carried out by manual operations; there is less automation in processes which takes more time in production. It is also possible that while manually cleaning the oil tank the workers may get harmed.

23

(c)

(d)

Figure (c, d): Improper visualization of machining process at end facing machine. Due to sprinkling of oil over the glass it is not possible to examine the process.

(e) (f) Figure (e, f): Poor maintenance of wiring and chemical tank. As the chemical tank is not properly maintained there is chance of tank to get bust up.

24

(g)

(h)

Figure (g, h): Algae/Fungus on floor due to water and oil leakage from machine makes the floor slippery. There is no provision for using the leaked oil which leads in wastage.

(i)

(j)

Figure (i, j) Ergonomics problem, there was no ventilation facility due to which temperature affects worker’s performances, which indirectly affects the productivity of the firm.

Table 3.2 showing analysis of utilization of machines before 5s

The above result came through the organizational records before 5s and shows the analysis of utilization of machines in each type of product before the implementation of 5S. For the product 34s ck it is only 95.2% before 5S, for 30s ck it is 94.4%, for 40s cw 92.8% and for 40s ck 90.1%.

25

Table 3.2: showing GPSS (gram per spindle per shift) before implementation of 5S Type of yarn

Before 5s

34s combed knitting

160gm

30s combed knitting

198gm

40s combed warping

115gm

40s combed knitting

132gm

The above data shows field of GPSS. Where it made the production 34s ck Yarn was 160 gm. In the case of 30s ck yarn it is 198gm, for 40s cw yarn it was only 125gm and for 40s ck yarn it is 132gm. Table 3.7 showing data on Quality (imperfection) before implementation of 5S

It is one of the important impacts of 5S; it could make a change in the quality of different type of yarn with respect to the index of imperfection. In the case of 30s ck yarn imperfection was 110. similarly they could reduce imperfection and improve the quality of all the other type of yarn as it is shown above.

Table 3.8: Count Strength of product before implementation of 5S

The above table shows count strength of yarn before the implementation of 5S. The minimum required count strength of yarn is 2400 and they maintained to achieve above 2400 before the implementation itself. 26

Implementation of 5S: 3.11 Seiri-Sort Analysis Seiri-Sort: Sorting items which are not necessary and segregating and disposing of goods that are not needed at work systematically are considered. Separation process is helpful in determining the necessary materials at the present or the future and should be stored in a designated storage area. Unnecessary items will be disposed. The benefits are:

Figure 3: God-own after the 5s implementation - Saving space -Stock control and efficient products -Searching time is fast -Safer workplace -More comfortable working environment -Easily detect the place / equipment / material damage early

3.12 Seiton-Set in Order Analysis Seiton: Set in Order: Neatness: This means preparing the necessary items neatly and systematically so that they can easily be taken and returned in the original place after use. It includes preparing and storing neatly, easily collected and stored back into place. Organizing and labeling was done after all the items that do not have to be separated. The composition of goods should be carried by the same group. The main objective is to develop economical use of space and the storage of goods is neat and orderly which facilitates the process of locating and obtaining goods in the future. Some examples can be based on the application and give 27

benefit to worker:

Figure 3.1: Machine kept clean and color code after 5s -The process works faster -Errors and mistakes will be avoid -Loss rate lower equipment -The working environment will be more convenient -Educating employees positive discipline -Among employees to generate creative ideas -Higher employee morale 3.13 Seiso-Shine analysis Seiso: Shine Cleaning: Clean and inspect the work in details so that no dust or dirt is on the floor, equipment and the working environment. The purpose of sweeping is to remove dust or dirt that sticks on the floor, the machine at work or goods that have been sorted and arranged. A checklist should be placed to guide the employees on what to do in the future in this activity. Fundamental points, equipment, areas should be swept and cleaned at all times with an effective maintenance schedule. Some examples are based on application which can benefit the worker includes:

28

Figure 3.2: Waste bin after implementing 5s -Low- cost equipment failure -Improved product quality -The work environment is more comfortable and cheerful -Workers continue to produce creative ideas -Higher employee morale -Safety at work 3.14 Seiketsu-Standardize analysis Seiketsu: Standardize: Uniformity: To establish standards of the best practice in the workplace and to ensure that the standards are compiled and to guarantee that the workplace is clean and tidy at all times (Ref. Anx: Ref.4). Examples of storage of equipment and documents that is clear.

Figure 3.3: Standardized machinery after 5S implementation 29

-Low overhead costs -Increased process efficiency -Increased production quantities -Educating employees positive discipline -Workers continue to produce creative ideas -Increasing workers’ skills -Employee loyalty to the organization -Enhancing the image of the organization 3.15 Shitsuke-Sustain analysis Shitsuke: Sustain: Always Practice (Shitsuke): Train employees disciplined for practicing 5S system continuously so that the habits and culture within the organization will include:

Figure 3.5: 5S implementation enables company to sustain -Low production costs -Increased labour productivity -Quality products and services -Get a certificate of increased 5S -Zero accidents at work

30

Data Analysis: Before and after 5s Implementation Efficiency is the comparison of what is actually produced or performed with what can be achieved. In general terms efficiency is the percentage of output by input. In knitting floor the equation for efficiency is given bellow: Efficiency =

Total output per day per line ∗ SMV Total manpower per line∗ Total operating minute

∗ 100

Table 3. Day by day observed output of knitting machine Hine Day 23-Mar 24-Mar 25-Mar 26-Mar 27-Mar Output 2400 2440 2435 2455 2600

The observed outputs of the knitting machine for that week are given to the Table 3. Efficiency before implementing 5s: Total output per machine / day = 22400 pcs, SMV = 37, Total manpower = 32, Total working minute = 10 hr = 10 × 60 minutes, by using equation (1), Efficiency = 50% Efficiency after implementing 5s: Total output per line / day = 2600 pcs. SMV = 37, Total manpower = 31, Total working minute = 10 hr = 10 × 60 minutes, by using equation (1), Efficiency = 62%. Similarly the calculated efficiency of each day of the week is given in Table 4. Table 4 Day by day observed efficiency of knitting machine Day Efficiency (%)

23Mar

24Mar

25Mar

26Mar

27Mar

50

56

54

59

62

DHU is the total no. of defects found in all the inspected garments in hundred units. DHU is considered as the total no of defected points of all defect garments. DHU is an important quality indicator. DHU = Total no. of defects of inspected products*100 31

No. of inspected products On the first day, the total no. of inspected garments was 259 and the total no. of defect points was 347. By using Equation (2), DHU can be found to be 134. After taking the corrective actions defects are reduced. Here it is noticed that DHU is reduced by taking the corrective actions of defects. The DHU for that week is given in table 5. Table 5; DHU chart of the week Day DHU No. of Defect points No. of inspected products

23-Mar 24-Mar 25-Mar 26-Mar 27-Mar 134 118 143 92 51 347 330 386 271 159 259

280

270

295

312

The existing 5S score of the knitting floor was 1.83. The details of 5S score after 5s implementation are listed in Table 6. After taking corrective actions, 5S score has been increased from 1.83 to 3.17. Sl. No.

Factors

Note for the next level of Score improvement 1. Unnecessary fabrics are present

01 Unnecessary Items

3

02 Safety

4

03 Material Storage

3

04 Tools & Gages Cleaning Equipment & 05 Materials

4 4

06 Emergency Equipment

3

07 Aisles

3

08

Floor Cleaning)

3

09

Equipment (Cleanliness)

3

10

Equipment (maintenance)

5

11

Visual Management

2

2. Unnecessary yarns are present 1. Large items are stored incorrectly 1. Defective garments are stored in the Tray 2. Unnecessary fabrics are stored 1. Tools are not standardized 1. No specific color code for brooms Emergency equipment are not 1. colored 2. Not sufficient equipment 1. Unnecessary yarns are present in the Aisles 2.Fabrics are present in the aisles 1.Fabrics are present in the floor 2.Unnecesarry yarns are found 1. Unnecessary oil is always in the Equipment 2. Work surfaces are not clean – 1. Not correctly specific 2. Is not updated Hourly 3. Congested area, tough to visualize 32

12

5S Control (Posted) Total 5S Score

3

1. Counter measures implemented 2. Results are not graphed

38 38/12 = 3.17

During implementing 5s, the observed Work-in-progress is given in table 7. The WIP has lessened gradually. This happened because of total productive maintenance of operators and equipment. Mentoring, control and improvement in processes have resulted in this reduction of WIP. Day WIP

23-Mar 24-Mar 25-Mar 26-Mar 27-Mar 152 145 133 121 106

Table 7: Observed WIP during implementing 5s

33

CHAPTER 4 SUMMARY, FINDINGS AND SUGGESTIONS 4.1 Summary This project of effectiveness of 5S system in improving production efficiency at Precot Meridian Ltd has revealed much information regarding the working of 5S system and how it can be made more effective. Presently the company is using 5S system and it is found that 5S enables the operations of the company more smooth and effective. With the changing techno-economic scenario around the entire world, the market has turned from seller to buyer type. The main objective of every organization is to satisfy the stated and implied needs of the customers. To provide quality product within stipulated time it is necessary to improve the working conditions. In order to improve the performance of employee, organization has to create interesting working environment. A pleasant condition can help improving performance and motivation on the workers. 5S is a system in which to reduce work and optimize productivity and quality through maintaining an orderly workplace. The benefit of good workplace include the prevention of defects; prevention of accidents; and the elimination of time wasted for searching tools, documentation and other ingredients of manufacture. The 5S is the methodology of creation and maintaining well organized, clean, high effective and high quality workplace. Its result is the effective organization of the workplace, elimination of losses connected with failures and breakdowns in machines, improvement of the quality and safety of work, Cleanliness and neatness of the organization. The data collection of this project is done through observation conducted in production and operations department of the company. The other information available for this project was the company’s records and manuals. This project gives an insight to the company’s present situation of effective housekeeping through the implementation of 5S system. The solution to the problem statement i.e. to train and convey the workers about the importance and usefulness of 5S system in housekeeping and their by increase productivity 4.2 Findings Before implementing 5s 5S score was 1.83. Here the 5S score was based on twelve important factors of garment environment. A new approach named visualization system has been introduced there. The 34

present condition of output hour by hour is visualized. The number of defects and most defects are also visualized. So the result is that the competition among worker increased. If there is also a system for extra incentive for good performance, operator will also be motivated. Actually the performance of output highly depends on the working environment. Improving the working environment by making it clean and worker friendly, the operators have become self-motivated to concentrate to the work. So the output of the operators has been increased automatically. In other word productivity depends on operators psychological factors. Before implementing 5s the 5S score was 1.83 but after implementing, monitoring, and controlling 5S approach the 5S score gets 3.17. Bangladeshi garments are usually hundred percent exports oriented. Buyer requirement is to have the hundred percent quality products. But defects are common in sewing floors and it cannot be fully eliminated. After analyzing cause and effect diagram, it is found that few defects are common and occur maximum time. The root causes of those defects have been identified and corrective actions have been taken then the DHU has reduced rapidly. Before implementing 5s the DHU was 134 but after implementing 5s the DHU has turned to 51. Figure 6 exhibits the day by day reduction in DHU with the implementation of 5s.

Figure 5: Observed day by day efficiency

Figure 6. Reduction in DHU day by day

-Precot Meridian ltd is one of the pioneer companies in the yarn manufacturing industries, which using 5S concepts in their work environment. -Based on the observation and interview with employees it is found that after the implementation of the 5S in the company it helped to improve the morale and enthusiasm of employees. -Precot Meridian Ltd has been well executed the concept of the 5S almost all area of the company. -From the comparative project on before and after 5S the company could improve utilizations of mill capacity. -They could also improve GPSS - After the implementation of the 5S they could also reduce the defect in product. -Another important finding of this project that there is an increase in the count strength of yarn from 2450 to 2700. 35

-Based on the observation it is found that there are some areas they couldn’t use properly the concepts of 5S,they are using Red tag systems of sorting line and labeling on the storage device for setting order, proper 5S audit etc. -Company had conducted many quality related training programs to make aware the employees about 5S system and LEAN philosophy. -From the observation and responds from employees it has found that there are some area which requires little more attention the arrangement especially in preparatory section. -Last but not least the important finding from the all project is that they could bring change in the work environment by implementing the 5S concepts and they have been effectively utilizing the benefits of the 5S over the last 5 years. 4.3 Suggestions Any good concepts is useless unless and until it is been utilized properly. So here are some recommendations from my side to the company is that. -Company need to focus on the improvement of utilization of 5S concepts in all the minor area of the work environment for attaining a good result in optimum level. - One of the most important things for the success of the 5S is to have sustainability for following the concepts properly so this area the company needs to put more care for attaining the goal. - Frequent auditing of 5S will help to assure the benefits of 5S in an organization. - Company lacks the sustainability of 5S in especially preparatory section, so as to maintain the 5S in an effective and efficient manner they need to put little more concentration on those areas. - The company can provide quality related training educational programs and events for sustaining the motivation of employees in the aspect of quality. - The company can act as role model and can motivate and assist other organizations in following quality improvement projects and better housekeeping practices.

36

BIBLIOGRAPHY

M. N. Ab Rahman, et al., Implementation of 5S Practices in the Manufacturing Companies: A Case Project. American Journal of Applied Sciences, 2010. 7(8): p. 1182-1189. S. Ahmed and M. Hassan, Survey and case investigations on application of quality management tools and techniques in SMIs. International Journal of Quality & Reliability Management, 2003. 20(7): p. 795-826. A Bayo-Moriones, A. Bello-Pintado, and J.M.D. de Cerio, 5S use in manufacturing plants: contextual factors and impact on operating performance. International Journal of Quality & Reliability Management, 2010. 27(2): p. 217-230. J. E. Becker, Implementing 5S to promote safety & housekeeping. Professional Safety, 2001. 46(8): p. 29-31. C.D. Chapman: Clean house with lean 5S. Quality progress, 2005. 38(6): p. 27-32. B. Eckhardt, The 5S housekeeping program aids production. Concrete products, 2001. 104(11): p. 56. Chauhan et al., Measuring the status of Lean manufacturing using AHP International journal of Emerging technology vol.1 no.2, pp.115-120. 2010. K.S. Chin, and K.F. Pun, A proposed framework for implementing TQM in Chinese organizations. International Journal of Quality & Reliability Management, 2002. 19(3): p. 272-294. R. R. Fisher, and K. Kobayashi, Implementing 5S within a Japanese context: an integrated management system. Management Decision, 2008. 46(4): p. 565-579. D. Gheorghe: The 5S strategy for continuous improvement of the manufacturing process in auto car exhausts, Management and marketing vol. 3, no. 4, pp. 115-120, 2008. S. Girish and P. Prosanto: Energy Efficiency in Small Scale Industries – An Indian Perspective Tata Energy research Institute. . 37

M. Hudli and K.H. Imandar, Areas of Lean manufacturing for productivity improvement in a manufacturing unity, world academy of science, engineering and technology vol. 69, 2010 Lukas et al. Lean implementation in a low volume manufacturing environment: A case project Proceedings Industrial Engineering Research Conference (2010) Miller et al., A case project of Lean, sustainable Manufacturing journal of Industrial Engineering and Management, vol.3 no.1, pp.11-32. 2010. T. Osada, The 5S's: five keys to a total quality environment. 1991: Asian Productivity Organization Tokyo. Upadhye et al. Lean manufacturing system for medium size manufacturing enterprise: An Indian case International journal of management science and engineering management. Vol.5, no. 5 pp. 362-375, 2010. J. Van Patten., A Second Look At 5S. Quality progress, 2006. 39(10): p. 55.

38

ANNEXURES Questionnaire Name: Resignation:

1.

Which all quality related training program has been conducted?

□ LEAN manufacturing □ 5s system □ Statistical process control □ TQM 2.

Is 5s system regularly monitored?

□ Yes 3.

□ No Is there a documented reporting system for 5s system?

Productivity?

□ Yes

□ No

Quality?

□Yes

□No

Efficiency?

□Yes

□No

4. □Yes

Do you issue internal 5s system reports? □ No

5. Do you issue internal 5s reports □Yes

□ No 39

6.

Is there a current organizational chart of the company and the quality department?

□Yes

□ No

7.

Does quality management have direct access to the highest level of management?

□Yes

□ No

8.

Are there written procedure for the control of 5s system?

□Yes

□No

9.

Does an effective corrective action system exist identifies root cause and action taken to eliminate recurrence?

□Yes 10.

□ No Where have you eliminated most unnecessary tools?

□Production □Store 11. Which area more eliminated unnecessary tool? □ Production □ Store □ Material Handling 12.

Do you believe that the arrangement of tool makes the workflow easier? □ strongly agree □ Agree □ Neutral □ Disagree □ strongly disagree 12. If yes, in which area arrangement is mostly needed? 40

□ Work □ Workers □ Equipment □ Raw material 13. Are you aware of Zero defect philosophy system? □Yes

□No 14. Zero defect system implemented here is?

□ More than 70% successful □ 50%-70% successful □ 25%-50% successful □ Below 25% successful 15. Do you clean after each shift? □Yes □No 16. Do you have a system to ensure that the work station is restored and ready for next shifts? □Yes □No 17. Do you have written standard for the quality of each operation? □Yes □No 18. Do you have standardized production system? □Yes □No

41

42

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