A Lean Manufacturing Progress Model and Implementation for SMEs in the Metal Products Industry

Abstract

The manufacturing industry faces the challenge of small and diversified customer orders. To meet this challenge, strong internal production capabilities are required. A lean manufacturing process that uses fewer resources and offers greater process improvement will help SMEs to continue to contribute to the global economy. Though SMEs provide most employment opportunities, previous studies have focused on large companies in auto-manufacturing-related industries. With the commitment and support of the management, and the application of a value stream map (VSM) and related improvement tools, we produced a practical process improvement model for a lean manufacturing system in an SME. With the commitment and support of the management and the joint efforts of the project improvement staff, the 10 improvement projects over a six-month period all achieved their goals: reduction in lead time from 26 days to 19.5 days, improvement of welding per people per hour (PPH) efficiency by 28.3%, improvement of packaging PPH efficiency by 64.1%, improvement of working in process (WIP) efficiency at the production site by 83.84%, and improvement of raw material storage by 83.84%. The efficiency of the raw material warehouse inventory was improved by 58.63%, and the efficiency of the shipment completion rate was improved by 14.5%.