Business and people integrated manufacturing strategy for word class manufacturing

Abstract

Background: Siemens Limited is a leading name in the field of electrical and electronics. The electrical industry is growing at 19.8% and we would like to grow at 25% . We at Switchboard works have a vision to move from 2100medium voltage panels to 4500 medium voltage panels per annum by the turn of this century .Objective: The objective of the project is to evolve a manufacturing strategy for Switch boards to meet the Visio»J2O00Methodology: A through analysis of present working was carried out viz. :existing product lead-time ? existing capacity utilisation , capacity limits , existing productivity ratios etc. In order to meet the targets by present norms we would require almost 48% more manpower and an additional area of 448 sq.mtrs. Hence it was evident that we required quantum improvements and sensible anchillarisation . To meet the Vision 2000 targets we have to reduce our lead-time and improve our area productivity. This is best possible when we operate on a unit batch size .On analysing the unique advantages of the single panel working we were able to evolve a product cell concept for our 8BK80 Panel which has a modular design and will form 80 % of our product mix by 2000 . By formation of three 8BK80 Product cells we will be able to manufacture 3600 8BK80panels in the same floor space and with a shorter lead-time (from 7 weeks to 4weeks ). The world class ratios have been used as stepping stones to achieve these improvements. This is a continuous process. We need to set higher bench marks in order to continue improving on our manufacturing .Investments and Returns: The additional investment required for layout changes are Rs 0.71million over a period of six months and the net savings vis-a-vis through put reduction , SMH reduction and increased area utilisation is approximately Rs5.2 million per annum for the business volume of 2700 panels for the year1996-97.Implementation:The implementation of this project can be started only after Sepf96when our Low Voltage Business gets transferred to Calcutta . This will create some space to carry out the layout changes in a phased manner . The completion deadline has been set as Dec?96 .Finally we are set for a major cultural change and the change is for the better . With a totally empowered workforce we expect to reach our targets with minimum hurdles .Suggestions: The implementation of this project should be accompanied with introduction of new performance measures which facilitate improvements and generate better performance . Cost and delivery reliability will be the key parameters . Employees will be the key to our success . In order to tap their creative potentials we need to create conducive work environment. A regular employee morale survey also needs to be launched to take corrective action .