Cost Reduction Through Waste Management in Auto Parts Industry: A Case Study
Industrial waste elimination is a major challenge that is faced by all the companies in the day-to-day activity of
manufacturing systems. There are seven types of industrial waste in lean systems such as movement, waiting, overproduction,
inventory, over-processing, defects and transportation. Every industry faces same type of waste that occurs in
day-to-day production activities. Muda directly or indirectly affect the production cost. Poor production cost is considered as
major problem in case industry. The objective of this study is to reduce the muda from side stand process line. In this study,
two techniques are used to achieve the objectives. Value stream mapping (VSM) is a state of the art technique used to find
out the major flaws in side stand process and ECSR (Eliminate Combine Simplify Reduce) technique is applied to identify
the opportunities for saving. Along with the application of VSM and ECSR techniques, corrective actions are taken to reduce
the muda from process flow of side stand from which higher process capability is achieved. It was observed that wastage of
material`s movement was reduced by 94.4%. As proposed in model, the Work in Process (WIP) inventory has been reduced
by 76.4% and workforce by 15.38%. Further, it would lead to the profit of Rs. 15738.4 per month.
Keywords— Value Stream Mapping (VSM), TAKT Time, Work In Process Inventory (WIP), Kaizen.