Managing industrial operations by lean thinking using value stream mapping and six sigma in manufacturing unit

Abstract

Purpose The purpose of this paper is to cover the significance of lean thinking using value stream mapping and six sigma methodology in managing industrial operations. Design/methodology/approach Lean manufacturing is an efficient approach for identifying and eliminating waste through a continuous improvement via flow of the product/service at the pull of customer in chase of exactness. This study has been carried out in a manufacturing unit of Northern India that was suffering from high production lead time and work in progress (WIP) inventory. Findings The current state and future state maps for the critical product have been prepared. On comparison of both current and future state maps, it was observed that lead time has been reduced by 14.88 percent, processing time by 14.71 percent and wastage of material movement by 37.97 percent. As proposed in model, the WIP inventories have been reduced by 17.76 percent and workforce by 17.64 percent. Further it would lead to the profit of Rs161,800 per annum. Six sigma projects have been carried out to reduce rejections of the critical product P-19 under study. The total length of the product was undersize of the critical product. Root cause analysis technique has been used through strategic DMAIC implementation. Results of investigation demonstrated net savings of rupees 145,560 annually. Originality/value The paper demonstrates the practical application of lean thinking, showing how it can bring real breakthroughs in saving cost in the manufacturing industry.