International Journal of Applied Engineering Research

ISSN 0973-4562 Volume 9, Number 7 (2014) pp. 773-782

Research India Publications
http://www.ripublication.com

Implementation of Lean Manufacturing in Indian Dairy

Industry: A Case Study
Mukeshkumar N Parmar1, Shashank J. Thanki2
1

PG Student at Shri Sad Vidya Mandal Institute of Technology,

Bharuch-392001, Gujarat, India.
2
Shri Sad Vidya Mandal Institute of Technology,
Bharuch-392001, Gujarat, India.

Abstract:
Lean manufacturing is a production strategy for organizational effectiveness
focusing on waste reduction and improving productivity through application
of various tools. This paper attempt to find out the reasons for sparse adoption
of the concept in Indian food processing industries through a cross sectional
case study. The study highlighted knowledge and understanding levels of
Indian industries about the concept of lean manufacturing, its adaptability, the
driving factor that lead to its adoption, benefits derived and application of lean
tools looking into operating environments. The study finally concludes with a
broad implementation framework for application of lean manufacturing in
dairy industries by used of value stream mapping tool.
Keywords: lean manufacturing, dairy industries, value stream mapping, waste
identification, waste reduction, etc.

Introduction
Lean production is a Japanese approach to management that focuses on cutting out
waste, whilst ensuring quality. This approach can be applied to all aspects of a
business from design, through production to distribution. Lean production aims to
cut costs by making the business more efficient and responsive to market needs. This
approach sets out to cut out all activities that do not add value to the production
process, such as holding of stock, repairing faulty product and unnecessary movement
of people and product around the plant. The original lean concept of flow date dates
back to around 1910 and is attributed primarily to henry Ford. In 1900, James
Womack and Daniel Jones documented the success of the Toyota Production System
in the Machine that changed the changed the world. Womack and Jones went on to

774

Mukeshkumar N Parmar, Shashank J. Thanki

demonstrate that in represent a fundamentally different way of thinking about process,

system, and organization as whole when they published lean thinking in 1996.
In lean manufacturing system the use of tools is [18], 5 Ss, Kanban, Visual
control, Poke yoke, SMED (single minute exchange dies), Value stream mapping,
Quality tool, TPM, Cell, Piece flow, Seven wastes.

2. Value Stream Mapping

A value stream mapping is collection of value added and non-value added activities to
make a product or service or combination of both for the customer (Rother and
Shook, 1999). In this consider the flow of both information and materials within the
overall supply chain. VSM focus on identifying the waste and to take a step for
eliminate these (Rother and shook, 1999). The researcher create a lot of tool for
optimizing the individual operation within a supply chain, but some of tool not giving
a visualizing for material and information flow in the entire supply chain in the
industries. VSM is like pencil and paper work, which is created using a predefine set
of standardized icons (Rother and Shook, 1999).
2. 1 Step of Value Steam Mapping
Value stream mapping can be a communication tool, a business planning tool, and a
tool to manage your change process. Value stream mapping is essentially a language
and, as with any new language, the best way to lean mapping is to practice it formally
at first, until you can use it instinctively. In value stream mapping initially follow the
step which is mention in figure-1. Mention that future-state drawing is highlighted
because of your goal is to design and introduce a lean value stream. The first state is
drawing the current state, which is done by gathering information on the shop floor.
This provides the information you need to develop a future state. The final step is to
prepare and begin actively using an implementation plan that describes, on one page,
how you plan to achieve the future state. Then, as your future state becomes reality, a
new future state map should be drawn. The beauty of this bureaucracy-and
PowerPoint-free method that your mapping and implementation team ends up with
only a few sheet of paper and the result future state and plan you archive.

Implementation of Lean Manufacturing in Indian Dairy Industry

775

Figure 1. Lean tool adopted by manufacturing firm (from 1994 to 2014) Data from
science direct as on20/04/2014

Figure: 2 Initial value stream mapping step [19]

3. Lean Manufacturing System with VSM.

Application of Lean manufacturing philosophy has found limited application and
acceptance in Indian dairy industries. The purpose of the present study is to explore
the current status of Indian dairy industries in terms of lean manufacturing tools and

776

Mukeshkumar N Parmar, Shashank J. Thanki

techniques and to provide a conceptual framework for lean implementation in Indian

dairy industries. Application of tools like VSM can help to identify the area for
improvement at case organization and the improvement in the performance indices
will be measured after implementation of lean tools/techniques based on the proposed
framework.

4. Methodology of project.

Figure3. Objectives of frame work [11]

The biggest problem for milk diary industry was long lead times. In order to
improve these times, the team set up several project goals. One of the main goals of
our project was to create a future state VSM that illustrated the ideal material and
information flow for the milk dairy industry. With the creation and implementation of
our VSM, milk dairy industries current lead time should be reduced. In this paper
both primary and secondary sources of data were collected. Primary data sources in
this paper were typically that of interviews that were of semi-structured. The
interview questions were structured in such way to get was necessitated out of the fact
I wanted to be flexible to enable me ask questions that would trigger respondent to
provide detailed opinion. Different key personnel in Amul Dairy, were interviewed so
as to get a rich theoretical framework and to show areas of problem.

5. Data analysis
Based on the interviews session with the case companies, the information collected
was transcribed accordingly to identify the types of production wastes evident and the
performance management systems currently in use in each of the companies. In the
analysis of the data, first approach is with the within time study method to show the
uniqueness of case company in the types of production waste evident and how they
have been reduced or eliminated in line with theories of waste reduction to show
confirmation or deviation. And also to describe what performance management
systems is in place and how these systems are used to manage performance in relation
to existing theories. Based on this a table highlighting the areas of differences and
similarities would be constructed. Time study is a structured process of directly
observing and measuring, using a timing device (stop watch): Human work in order to
establish the time required to complete the work by a qualified worker when working
at a defined level of performance.

Implementation of Lean Manufacturing in Indian Dairy Industry

777

6. Development of Current State Map

Some lean practitioners claim that hand drawn maps are of more benefit describing
value stream mapping as a pencil and paper activity. Others state that the most
valuable part of a value stream mapping activity are the maps themselves and whilst
software can be used for documenting the findings it shouldnt detract from the
process.
The current and future state maps are only as good as the data on which they are
based. Collecting good, useful data can be a challenge. It can be a very time
consuming step if everything needs to be measured for the first time. In addition,
where no measures are consistently collected, it will be necessary to obtain
information about the operation from those directly involved with the operation, and
this kind of data is often unreliable.
The following tips may help you get a better picture of what happens:
Follow the manufacturing process from start to finish to get the actual routing.
Walk the route and confirm that at each step the product came from the
previous step; or better still, start at the end and work towards the start,
ensuring that product travels to the step just visited.
Note levels of WIP at each step. Ask if there is more material stored
elsewhere, and include that in the count as well. Ask if this is the normal
routing, or if it is an alternative step (due, for example, to a machine being
unavailable as a result of breakdown, or a quality problem with another
product).
Some of the task competed doing the observation which is the mention to
below, Routing (process or queue name; routing step; number of machines
allocated to step),
Cycle times (process c/t; queue minimum wait time), Setup time (time;
frequency), Yield (scrap or yield %), Availability / frequency of utilization of
an operation in the particular value stream (allocation % to value stream;
stoppages for breaks; how often the process is used for the value streams
products), Shifts and number of operators (overtime requirements; regular
shifts; number of operators per machine).
The above data collected by the stopwatch on shop floor and this all process is
continuous process so inventory are not calculated doing the observation.
Table 6. Actual data of case industries.
PROCESS
CYCLE TIME PEOPLE
Reception Area
45Mint
9
Cream pasteurization
60 Mint
2
Butter machine
60 Mint
2
Butter packing machine
100 Mint
5
Trolley filler
20 Mint
9
Load storage and delivery vehicle
120 Mint
4

778

Mukeshkumar N Parmar, Shashank J. Thanki

Figure4. Current state of xyz dairy industry.

After the data collection is complete, all of the data can be collected in a single
spreadsheet, or transferred directly to the value stream map from each observation
value. The above value stream map generate in eVSM software and analyze the time
study. The summary of current state map of xyz milk industry mention to below.
Table 7. Summary of current state map of process vs. cycle time
Process
Cycle time
Reception area
35
Storage tank
150
Cream pasteurization
60
Cream buffer tank
90
Butter machine
60
Butter packing machine
100
Trolley filled
20
Ware house
720
Load storage delivery vehicle
120

This section is applicable to both maps and simulation models, in that validation is
required to move forward with confidence. However, static maps are more difficult to
validate, since all results are calculated manually, and lack the element of time.
Typically, static maps only provide lead time and cycle time data, whereas computer
simulations can provide data on inventory fluctuation, process waiting time, and other
time based values.

Implementation of Lean Manufacturing in Indian Dairy Industry

779

6. Waste Checklist
Table 8. Waste check list
Factor inspected
Waste identify
Balance product supply with end user demand
NO
Product quality
NO
Administration
NO
Improve forecast management
NO
Handling and moment
YES
Layout
YES
Land equipment and input
YES
Physical fault
NO
Staff
YES
Wasting and Damage
YES

Table 9. Area of improvement

Area of improvement
Suggestion
Handling and moment
Flat belt conveyor
Layout
Change the location of box packing system
Land equipment and input
Automation
Staff
Communication device
Wasting and Damage
Proper inspection and procedure

7. Area of improvement
From the current state map identify the waste in the some task which is mention to
above table and the suggestion also given there. in the material handing waste
suggestion the flat belt conveyor, in the lay out.
Result: area of improvement is Butter section.

780

Mukeshkumar N Parmar, Shashank J. Thanki

8. Future State Map

Figure 14. Future state map

Implementation of Lean Manufacturing in Indian Dairy Industry

781

9. Result and Discussion

After the analysis of current state and future state map shown in above figures, some
important findings of the case study are interpreted. The following areas of wastage
have been identified:
Inappropriate plant layout:
Box packaging area is eliminated and it is covered as free working space. For
example initially butter was packed in this space now it is directly packed on machine
by manually.
Repetitive handling and moving:
Goods moved between various storage / sites. Rooms used as thoroughfares.
Transportation:
To and from logistics, customers, sister sites and suppliers. Effective no. of working
days are 30 days, no of shift per day is three and hour per shift are 7 hour available
working time per days is 50400 sec, takt time can be calculated as,
Takt time = {(available working time per day)/ (customer demand per day). Takt
time for this system is 265 minute. It is found that total inventory time is reduced
from 17 hr to 11 hr and value added time is reduced from 40. 66 Minute to 20. 75
Minute. Cycle time is reduce from 21. 11 hr to 13. 60 hr.
Manpower is reduced from 13 to 7 by replacing the manual packing of butter and
manual transportation with help of trolley is replaced by automatic flat belt conveyor.
It directly reducing the man power which is associated with trolley. By replacing the
conveyor ROI and transportation time is calculated and obtained beneficial for system
ROI with energy cost.
6 person associated with trolley is eliminated by replacing conveyor whose wages are
200Rs. per year total expenditure is 13, 14, 000 Rs. for three shift. The conveyor cost
is approximately 13, 50, 000Rs. The operating cost is 1, 50, 000 including
maintenance. The return of investment approximately one year.

Conclusion
This research has discussed the processes which take place in yoghurt manufacturing
and has highlighted problems which exist in the organization. To overcome these it
has uncovered a number of possible opportunities to improve inefficiencies. The
report has highlighted inappropriate layout of butter production area which is affected
to product quality and also transportation facility of final product. In the butter section
the butter transport by trolley to the ware house by manually but we suggest a flat belt
conveyor and that result the product damage ratio decrease and man power also
reduce. the flat belt conveyors electricity consumption and total cost calculated and
compare to the ROI and to know that after 1 year will be back the ROI and also to
improve the quality.

782

Mukeshkumar N Parmar, Shashank J. Thanki

Reference
[1] Abdulmalek, F. A., Rajgopal, J., 2007. Analyzing the benets of lean
manufacturing and value stream mapping via simulation: A process sector case
study International Journal of Production Economics 107 (1), 223236.
[2] Fawaz A. abdulmclek and Jayant Rajgopal, 2006. The lean manufacturing and
value stream mapping via simulation.
[3] James C. Chain, Chen-Huan Cheng, Pot sang B. Hung, Supply chain
management with lean production and RFID application
[4] Poul Componation, Hank C zarnecki, Bernard J. Schorer, Simulation as a tool
for continuous process improvement.
[5] N. P. Mahalik and Matthew yen, 2008. Extending eldbus standards to food
processing and packaging industry
[6] Robert Collins, Carlos cordon and Denyse Julien, 1996. Lessons from the
made in Switzerland study: what makes a world-class manufacturing.
[7] G. C. cox and E. J. miller, 1986. Comparative energy efficacies of the dairy
manufacturing and processing industry: Australia and New Zealand.
[8] Amar mahofouj, John crowe and Amr arisha, 2011. Integrating current state
and future state value stream mapping with discrete event simulation: a Lean
distribution case study.
[9] Wyatt W. Decker and Lathha G. Stead, 2008. Application of lean thinking in
health care :a role in emergency department
[10] Melvin A. and Baglee. D, 2008. Value stream mapping : A dairy industries
prospective
[11] Rahani A. R and Muhammal al-Ashraf 2012. Production Flow Analysis
through Value Stream Mapping: A Lean.
[12] Shingo S. A study of Toyota production system from an industrial engineering
viewpoint. 1989.
[13] Womack, J. P., Jones, D. T., Roos, D., 1990. The Machine that Changed the
World. Rawson Associates, New York.
[14] Rother, M., Shook, J., 1999. Learning to See: Value Stream Mapping to Add
Value and Eliminate Muda. The Lean Enterprise Institute, Inc., Brookline, MA.
[15] Ohno, T. (1998): Toyota Production System: Beyond large scale production,
Productivity Press, Portland Learning to see value steam mapping by mik
Rother and john shook.
[16] S. S. Mahapatra and S. R Mohanaty: Lean manufacturing in continues process
industries: An empirical study
[17] Lean manufacturing pocket hand book by Kenneth W. Dailey
[18] Value stream mapping for lean development by Drew A. locher.
[19] Value stream mapping for lean development by Drew A. locher.