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Case Study: Lean Implementation at Siemens' Kalwa Plant

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Graduate School of Business Faculty of Business & Accountancy CMGB6104: Operation Management Case Study: Lean Implementation at Siemens' Kalwa Plant Prepared For: Dr. Kanagi Kanapathy Prepared by Group 5 (Wednesday 6.30 p.m. class): Jamaludin Muhamad Yusof CGA 120092 Sathisveran CGA 100081 Vinoden Subramaniam CGA 120012 Payam Nasehi CGA 120079 Salwa Faharudin CGA 110110 Table of Contents Page _____________________________________________________________________________________ 1.0 EXECUTIVE SUMMARY & COMPANY BACKGROUND 3 2.0 QUESTION 1 8 3.0 QUESTION 2 11 3.0 QUESTION 3 13 5.0 QUESTION 4 15 6.0 QUESTION 5 17 7.0 REFERENCES 22 1.0 EXECUTIVE SUMMARY & COMPANY BACKGROUND …show more content…

Every order needed two type of raw materials (equipments) :1-electrical , 2- mechanical ,the top staff wrote the necessary equipments in a list that called (BOM) bill of materials list . The BOM sent by enterprise resource planning software (ERP) to the material planning department, mechanical equipments were existed inside of the company and electrical needed to order to the supplier. Then procurement cycle started next equipments release to the shop according to the requirement. The exits manufacturing system had many error, waste and inefficiencies in shop floor and logistic (they wasted long time and valuable raw materials and sometimes the manufactured panels wasted because of weak layout design) , on the other hand on 2006 customer demands increased around 75 percent and managers need to enhance their manufacturing process efficiency to reduce their costs and respond sooner to the customer demand .in October 2006 Siemens AG sent a letter regarding the implementation of lean management in Kalwa company and mentioned they eagerness to improve Kalwa factory like the other branches during the world . They expected this implementation will enhance company’s capacity to triple during five or six years. Lean management implementation steps: The lean management team visited Siemens site in Turkey which managed in lean management methods then consultant added to the team members , one of the most important duties for managers and team

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