It is a study done on finding the Effectiveness of lean Manufacturing Practices In MSME (Micro Small Medium Enterprises) with the help of cluster approach. the Study has primarily been done on 33 industrial units in Mohali Chandigarh.This study is very necessary for the Engineering and as well as Business Students and Entrepreneurs for the implementation of Lean Manufacturing Practice. it gives the whole ideas of perception on Lean.

1. Research Topic
A Study on the effectiveness of lean Manufacturing Practices in
Micro, Small and Medium Enterprises (MSME) through Cluster
Approach
Submitted by:
Jaspreet Singh
Uni. Roll No.:1176171
SID:- 0711-0027
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A Study on the effectiveness of Lean Manufacturing Practices In MSME through Cluster Approach

2. Introduction of Lean Manufacturing.
A Study on the effectiveness of Lean Manufacturing Practices In MSME through Cluster Approach
2
• An operational system that maximizesValue Added, reduces
Essential Support and eliminatesWaste in all processes
• A good understanding of waste and value and a set of tools and
techniques to eliminate the waste from system are very crucial to
create a lean Enterprises.
Tools of Lean
5S,Waste Identification & Elimination, Kaizen, S.M.E.D.(Single Minute
Exchange Die), PokaYoke, Single Piece Flow,Value Stream Mapping ,
Visual Management.

3. Definition of Research Problem
 “A study on the effectiveness of lean manufacturing practices in
Micro, Small and Medium Enterprises (MSME) through cluster
approach.”
 The organizations were engaged in the Cluster Programme. Lean
Manufacturing tools and technique were applied by them in their
respective industries.
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A Study on the effectiveness of Lean Manufacturing Practices In MSME through Cluster Approach

4. Objective of the research.
 To See the effectiveness of Lean Manufacturing practices?
 What are the potential benefits been achieved by them?
 Various factors responsible for the Adoption of Lean Manufacturing
Practices ?
 Reasons for being not be implemented in Some Industries?
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A Study on the effectiveness of Lean Manufacturing Practices In MSME through Cluster Approach

5. Designing of Research
 Study is carried out in 33 industries, Who had implemented lean.
 A key person was selected from each of these 33 industrial units for
getting information on various aspects of the lean manufacturing
practices and techniques.
 Questionnaire was the tool used for collecting the data.
 Data is analyzed through the SPSS, Micro soft Excel and some where
manually too.
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A Study on the effectiveness of Lean Manufacturing Practices In MSME through Cluster Approach

6. Sampling design
 Sample Size:- Sample Size was 33 industries , Concerned person
was selected from those industries.
 It was a Judgmental sampling technique.
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A Study on the effectiveness of Lean Manufacturing Practices In MSME through Cluster Approach

7. Measurement used
 Mean
 Variance
 Standard deviation.
 ANOVA’s
 Chi-SquaredTest.
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A Study on the effectiveness of Lean Manufacturing Practices In MSME through Cluster Approach

8. Method adopted for data collection
Method Adopted for Data Collection was a structured
Questionnaire comprising the four sections as follows:
 Perceptions about lean
 Factors influence for adoption of the lean
 potential benefits been achieved
 Why it can not be implemented in some industries.
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A Study on the effectiveness of Lean Manufacturing Practices In MSME through Cluster Approach

9. Results.
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How do you perceive the lean Manufacturing concept ?
A Study on the effectiveness of lean Manufacturing Practices through Cluster Approach
Table 1:- Mean score on different perceptions of the Lean Concept.
Different Concept of lean Average of Responses receives.
Improvement Project (I.P) 1.39
Complexity of technique (C.T) 3.52
Only a training Not Implementable 3.8
Piecemeal Approach (P.A.) 3.85
Time Waste Activities(T.A.) 4.36
1- Strongly Agree, 2- Agree, 3- neutral, 4- Disagree, 5- Strongly disagree.
1.39
3.52
3.8 3.85
4.36
0
1
2
3
4
5
I.P C.T N.I P.A T.A
MeanRatingScale
Industrial Perception About Diffrent Concept of Lean

10. 10
Factors responsible for adoption of lean manufacturing Practices in different types of industries.
Table:-2 One wayVariance analysis had been done on the responses received.
Factors
Responsib
le for lean
Type of Industry
Micro
Scale
Small
scale
Medium
scale
P.R.F. 3.99 4.12 3.875
C.D.F 4.22 4.22 4.167
P.F. 4.47 4.36 3.33
M.R.F. 4 4.2 3.5
3.99
4.22
4.47
44.12 4.216 4.36 4.2
3.875
4.167
3.33
3.5
0
1
2
3
4
5
P.R.F. C.D.F P.F. M.R.F.
Micro scale Small scale Medium Scale
1- Strongly Disagree, 2- Disagree, 3- neutral, 4- agree, 5- Strongly agree.
Lower
Bound
Upper
Bound
1 21 3.9940 .32948 3.8441 4.1440 3.25 4.50
2 10 4.1250 .30619 3.9060 4.3440 3.63 4.50
3 2 3.8750 .17678 2.2867 5.4633 3.75 4.00
Total 33 4.0265 .31678 3.9142 4.1388 3.25 4.50
1 21 4.2302 .35542 4.0684 4.3919 3.33 4.83
2 10 4.2167 .43780 3.9035 4.5298 3.50 4.67
3 2 4.1667 .23570 2.0490 6.2844 4.00 4.33
Total 33 4.2222 .36720 4.0920 4.3524 3.33 4.83
1 21 4.4762 .65465 4.1782 4.7742 2.00 5.00
2 10 4.3667 .33148 4.1295 4.6038 3.67 5.00
Total 33 4.3737 .61100 4.1571 4.5904 2.00 5.00
1 21 4.0000 .70711 3.6781 4.3219 2.50 5.00
2 10 4.2000 .94868 3.5214 4.8786 2.50 5.00
Total 33 4.0303 .80951 3.7433 4.3173 2.50 5.00
N Mean
Std.
Deviation
Maxim
um
prf
cdf
pf
mrf
95% Confidence
Interval for Mean
Minimu
m
A Study on the effectiveness of Lean Manufacturing Practices In MSME through Cluster Approach

11. 11
Which Tools and Techniques used by Companies?
Tools used by companies No. of companies that used these tools
5S 32
W.I&E:- Waste identification and elimination 11
V.M.- Visual management 17
V.S.M- Value stream Mapping 0
T.P.M.- Total productive maintenance 1
S.M.E.D.- Single Minute exchange die. 26
Takt Time 0
S.P.F.- Single Piece flow 9
PokaYoke 7
Kaizen 33
Table:- 3 Shows that tools and techniques used by the Companies
• Chi squared test were tried here.
• Data received was not up to the
expectation.So Chi-SquaredTest does
not applied.
A Study on the effectiveness of Lean Manufacturing Practices In MSME through Cluster Approach

12. 12
Tools and Techniques used by Companies – Type of Industry wise.
Tools/Techniques
Type of industry.
Micro scale Small scale Medium scale
5S 21 10 2
W.I.E 5 5 1
V.M 10 6 1
V.S.M 0 0 0
T.P.M 0 0 1
S.M.E.D. 13 11 2
T.T 0 0 0
S.P.F. 7 2 0
Q.F.D. 0 0 0
P.Y. 3 3 1
Kaizen 20 10 2
21
5
10
0 0
13
0
7
0
3
20
10
5 6
0 0
11
0
2
0
3
10
2 1 1 0 1 2
0 0 0 1 2
0
3
6
9
12
15
18
21
24
27
30
33
No.ofcompanies.
Micro scale Small scale Medium scale
This analysis had been done manually and graph is made with the help of Microsoft excel
Table:- 4 Shows that tools and techniques used by the Companies
A Study on the effectiveness of Lean Manufacturing Practices In MSME through Cluster Approach

13. 13
What are the Potential benefit been obtained by Industries.
Potential Benefits
Mean of
all
response.
Reduced Cost (R.C.) 3.06
Improved Service (I.S) 3
Improved On time Delivery (I.O.D) 3.09
Reduced Lead Time R.L.T. 3.3
Increase Manufacturing Flexibility (I.M.F.) 3.18
Zero Machine Breakdown (Z.M.B) 3.24
Improved Customer Service I.C.S 3.42
Eliminate Error Proofing (E.E.P) 2.73
1. Nil (0%), 2.Low (1-25%), 3.Moderate (26-
50%),4.High (51-75%), 5.Very High (75-100%)
3.06 3 3.09
3.3 3.18 3.24
3.42
2.73
1
2
3
4
5
r.c. I.S I.O.D R.L.T. I.M.F. Z.M.B I.C.S E.E.P
ScaleOfbenefits.
Potential Benefits.
R.C- Reduced Cost, I.S- Improved Service, I.O.D. Improved In on time Delivery, R.L.T-
Reduced Lead Time, I.M.F.- Improved Manufacturing Flexibility, Z.M.B.- Zero Machine
Breakdown, I.C.S.- Improved Customer Satisfaction, E.E.P. – Eliminate the error Proofing.
A Study on the effectiveness of Lean Manufacturing Practices In MSME through Cluster Approach
Table:- 4 Shows the Benefits Obtained by Company.

14. Summary of Findings
 Companies perceived lean manufacturing practice as an improvement project.
 A negative trend can be seen on the negative perceptions of lean.
 It was clearly found that, People related factors were the reasons for implementing the
Lean Manufacturing practices
 After people related factors customer driven factors is the second factor which is
responsible for the adoption of lean manufacturing practices.
 Customer driven factor was main reason for implementing the lean manufacturing
practices in Medium scale industries.
 5S and Kaizen had been implemented by all companies.
 T.P.M. was implemented by only one company and that was a Medium scale company
 Poka yoke was more used by small scale industries
 Reduction cost was moderate (26-50%).
 There was not any company who can get the higher benefits up to 90% in this
research.
 Error proofing was least beneficial than others.
 58% people think that tools were complex for workers.
 Entire Organization got benefits with the implementation.
 They are recommending it to other companies to go for it too.
14A Study on the effectiveness of Lean Manufacturing Practices In MSME through Cluster Approach

15. Limitations of the Research
15A Study on the effectiveness of Lean Manufacturing Practices In MSME through Cluster Approach
•Due to certain reason only one person was selected from each industry as it can be more
than one too.
•The research was carried out in a short period of time. Therefore the sample size and
other parameters were selected accordingly so as to finish the work within the time frame
•This was the research from manufacturing sector as it may not be applied to service
sector
•The study was done only in Mohali

16. 16
Glimpses.
Before After
Before After
AfterBefore
A Study on the effectiveness of Lean Manufacturing Practices In MSME through Cluster Approach

17. Kaizen Sheet 1
6/21/2013
Kaizen No.773Productivity Quality 3M Safety Material Energy
KaizenTheme :- Implemented Area :- Zone- 5
To increase the production of Upper chain bracket Implemented By:- Satpal
Problem/Present Status:-- Before Implement:-- Result benefit:
The production of upper chain bracket
was low as there was a bit difficult to
meet the monthly orders.
P • Result production
increased by 80%.
• Saving Rs. 720 /day ,
which is Rs. 20540/
month.
Q
C
D
S
M
Root Cause Identification After Improvement:- Standardization:-
The production of this part was low
the fixture can only clamp these parts
The fixture was small
Root Cause: The fixture was small
How many places this kaizen can be
deployed horizontally: 9 Paces Found
IdeaTo eliminate root cause The fixture can be enlarged
Action taken The fixture modified.
SOP to be revised
Operation standard to be
revised.

18. Thank you
18A Study on the effectiveness of Lean Manufacturing Practices In MSME through Cluster Approach