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Lean production and industrial engineering applied in China
Computers ind. EngngVoi. 29, No. 1--4, pp. 233-237, 1995 Copyright © 1995 Elsevier Science lad Printed in Great Britain. All rights reserved 0360-8352/95 $9.50 + 0.00
Pergamon
0360-8352(95)00077-1
Lean Product ion and I n d u s t r i a l E n g i n e e r i n g
Applied in China
....
wo.nq ~
Donq
Deputy General Manager with S~Ek Ck,r Motorcycle Company dc~,cz~¢
! . T h e a p p U m m l a n ll;endm'my l l ; o w m L.onn P r o d u o l ; l a n annd Incluml=rinl n=nglmmr~.g in C l a m . In the 3O's of this century, a research on werk efficiency and e f f e c t s turned f i r s t page in I n d u s t r i a l E n g i n e e r i n g . Western S o c i e t y , a f t e r the ~ortd ~ar I I , i n f i l t r a t e d ~ e f f i c i e n c y ~ i n t o v a r i o u s system of I n d u s t r i a l E n g i n e e r i n g , hence formed a s p e c i a l t c c i m i q u e named "Industrial Engineering". This management tecbmique effective utilization of resources pushed Western industry to develop as quickly as possible. Japan introduced a series of management tecbJ~iquc from European and the American a f t e r the 2nd war and combined i t s t r a d i t i o n a l c u l t u r e to e n r i c h and d e v e l o p I n d u s t r i a l E n g i n e e r i n g Theories, such as " creating new idea consciousness" and "Lean Production" and the later was Japanese successfu! application of Industrial Engineering. Therefore, Japanese Industry stepped into World Industry rank in several decades shortly. This was duc to creative practice in Industrial Engineering. Traditional Planning Economy and rigid way of production under which ignored "efficiency" and "profit" and made the operation of national economy slumber in low efficiency and low profit in a long period of time.
O~IE29:114-~
233
234
17th ~ter~tional Conference on C o m p u ~ a ~ l ~ t r ~ l Engineen~
S i n c e the 8 0 ' s of t h i s c e n t u r y , great changes were taken p l a c e in China owing to the r e f o r m i n g and opening p o l i c y . New thought and method of management began to e n t e r i n t o c h i n e s e i n d u s t r i a l fields. R e c e n t l y , f o r i n s t a n c e , Shanghai Automotive I n d u s t r y Corp. pushes a campaign of " c r i s i s management" of which main c o n t e n t s a r e Lean P r o d u c t i o n . This w i l l r e d u c e the cost of Santana ( a kind of car) to go down 5~ and labour p r o d u c t i v i t y up 5~ in c o n s e c u t i v e y e a r s , h s u r v e y from China Second Automotive Corp. shows t h a t the a p p l i c a t i o n of "Lean P r o d u c t i o n " in Gearbox P l a n t causes the output to be doubled than o r i g i n a l c a p a c i t y , and working c a p i t a l and p r o d u c t i v e workers reduced 50~, and labour p r o d u c t i v i t y is i n c r e a s e d one more time. Report from the F i r s t Automotive Corp. Gearbox P l a n t shows that the a d o p t i o n of lean p r o d u c t i o n makes the p l a n t ' s output v a l u e i n c r e a s e d 44.3~, labour p r o d u c t i v i t y i n c r e a s e d 37~ and p r o f i t per c a p i t a i n c r e a s e d 25.15 in h a l f a y e a r . The above a r e the c a s e s to p o i n t t h a t carrying forward advanced management t e c h n i q u e l i k e I n d u s t r i a i E n g i n e e r i n g and Lean P r o d u c t i o n ana in c o m b i n a t i o n w i t h c h i n e s e n a t i o n a l c o n d i t i o n s w i i l be an i r r e v e r s i b l e c u r r e n t . I t is a s h o r t cut f o r c h i n e s e c o r p o r a t i o n s to s t e p i n t o tile i ~ e r n a t i o n a l ~ a ; k e t .
~m T h e r ~ l ~ n ~ I~wee. Lean Produotion.
Inclua~'mml E n g i l ' m l l r l r t g
P o i n t I: I n d u s t r i a l E n g i n e e r i n g ~s the e n g i n e e r i n g p r o d u c t i ~ , t h e r e f o r e , pushing Lean P r o d u c t i o n f i r s t ~
base
and
of
Lean
G). Lean P r o d u c t i o n is the e x p r e s s i o o used ~" e x p e r t s of I n t e r n a t i o n a l Motbr V e h i c l e P l a n n i n g O r g a n i z a t i o n ( I ~ ) to p r a i s e J a p a n ' s "Canpain Production". "Lean ~ h e r e means as l e s s as p o s s i b i e , namely u s i n g n e c e s s a r y f a c t o r s of p r o d u c t i o n to m a n u f a c t u r e the p r o d u c t s demanded in the market ( or components needed by the next p r o c e s s ) . . ~ d a l i the o p e r a t i v e a c t i v i t i e s should be b e n e f i c i a l , e f f i c i e n t and economical. P r e s e n t l y , Lean P r o d u c t i o n is the b e s t o r g a n i z a t i o n a l s y s t e v and method used in the world i n d u s t r y , w h i l e I n d u s t r i a ! E n g i n e e r i n g is an e n g i n e e r i n g base to complete Lean P r o d u c t i o n and a i s o important p a r t of Lean P r o d u c t i o n . J a p a n e s e u n d e r t a k i n g s adopt o p e r a t i o n a l s t u d y , Motion s t u d y and time s t u d y t e c h n i q u e of I n d u s t r i a l E n g i n e e r i n g to implement Lean P r o d u c t i o n , Thus makes Lean P r o d u c t i o n stand on s c i e n t i f i c bases and i t is d i s t i n g u i s h e d and e f f i c i e n t . Certainly, c r e a t i v e a p p l i c a t i o n of I n d u s t r i a l E n g i n e e r i n g in Japanese b r i n g s not o n l y core changes in the ways of p r o d u c t i o n but a t s o r a d i c a i changes in o r g a n i z a t i o n a l system, management system, m a r k e t i n g v a l u e p o i n t
17th ~ t e r n a t w ~ l Conference on C o m p u ~ and Indus~ml Engineering
~5
concerning product development, q u a l i t y control, o u t s i d e - c o o p e r a t i o n management, customer r e l a t i o n s and so f o r t h which the most e f f e c t i v e i n f l u e n c e is Japanese c o r p o r a t i o n c u l t u r e . In the c o u r s e of learning and implementation 12, China must combine it with the a n a l y s i s of I n d u s t r i a l E n g i n e e r i n g and get down in i t from IE. P o i n t II: C a r r y i n g forward IS0-9000 in mainland E n g i n e e r i n g is the p r e c e d e n c e .
China,
Industrial
IS0-9000 is an i n t e r n a t i o n a l General S t a n d a r d worked out by International Standardized O r g a n i z a t i o n to a s s u r e the q u a l i t y of the product as well as q u a l i t y formed in a l i the p r o c e s s i n g l i n k s . In my o p i n i o n , the e s s e n c e of ISO - 9000 is to let the u n d e r t a k i n g s to adopt i n t e r n a t i o n a l s t a n d a r d i z e d q u a l i t y a s s u r a n c e system and q u a l i t y management system so as to e n s u r e the q u a l i t y of the p r o d u c t . Learning the i n t e n s i o n and e x t e n s i o n of I n d u s t r i a l E n g i n e e r i n g , we can see t h a t I n d u s t r i a l E n g i n e e r i n g is the p r e c e d e n c e of ISO-9000. Only a f t e r w i d e l y - f i n d i n g the q u e s t i o n s , c o m p l e t i n g o p e r a t i o n , o p t i m i z i n g management and f i n a l l y makig improvement on a l l p r o c e s s l i n k s in the p r o d u c t i o n chain can the q u a l i t y o~ the p r o d u c t s be e n s u r e d and the s t a n d a r d be implemented. The f a c t t h a t some i n t e r n a t i o n a l c o r p o r a t i o n s have got ISO's certificate without c o m p l e t e l y s o l v i n g the p~oblem of q u a l i t y proved t h a t c a r r y i n g out IS0 9000, one should do on the base of I n d u s t r i a l E n g i n e e r i n g .
111. l m p i l m l m l = , . , l l = i o n o f Urlclualr,r,iml E n g i r m i - i n g Produall;Ion In Sh~,,nghll - Ek Chop C : ~ y L i m i t , e ,<-.
and Lean Mol;or~yoill
Shanghai-Ek Chor Motorcycle Company Limited ( h e r e i n a f t e r refer to SE~) is a j o i n t v e n t u r e with equal s h a r e between Shanghai Automotive I n d u s t r y Corp. and Ek Chor Investment Co,, Hong Kong, a d i v i s i o n under Chia Tai Group, Thailand. E s t a b l i s h e d in 1985, SF_bt mainly produced two s e r i e s XingPu (which in c h i n e s e means " h a p p i n e s s " ) brand Motorcycles, namely, XT125 and XF250, ana about ten more kinds of p r o d u c t s . In 1994, SF_/d's annual output r e a c h e d 300,000 u n i t s and it is p l a n n i n g to manufacture 400,000 u n i t s in 1995. S i n c e the founding of the J o i n t Venture, SE/d's output i n c r e a s e d t e n more times and p r o d u c t s s e l l well as f a r as to A r g e n t i n a , N i g e r i a , I r a n , and Turkey. Besides, SEbt has been honoured as " v e n t u r e of advanced t e c h n o l o g y in Shanghai" e v e r y y e a r s i n c e 1986. )md from 1987, ~ has
~6
17th ~ t e r n a t w ~ l C o n ~ e
on Computers a ~ Induswml Engineering
been nominated as "Ten b e s t mantffacturing j o i n t venture nationwide " f o r seven years. SEM i s one of the l a r g e s t s i n o - f o r e i g n j o i n t venture and p r o f e s s i o n a l m o t o r c y c l e producer.
1 . P r a c t i c e and r e s u l t . Combined with Lean P r o d u c t i o n and I n d u s t r i a l Kngineering s i n c e the end of 1993, SK~ has p r a c t i s e d in the f o l l o w i n g ways: A. To have a c l e a r o b j e c t i v e and to have the u t i l i z a t i o n of various factors of production be increased greatly within ten thousand yuan industry net sales compared with Other companys of the same trade and that before pushing Industrial Engineering. B. To lay emphasis and to execute by steps. To solve two p r e s s i n g problems of our company production c a p a c i t y b o t t l e n e c k s and l o s i n g the c o n t r o l of p r o d u c t s p h y s i c a l q u a l i t y , S ~ developed I n d u s t r i a l e n g i n e e r i n g , pushed Lean P r o d u c t i o n smoothed m a t e r i a l flows and o p t i m i z e d p r o c e s s i n g o p e r a t i o n s . D e t a i l e d speaking, SI~ organized j u s t - i n - t i m e p r o d u c t i o n f o r the purpose of d e c r e a s i n g i n v e n t o r y and a r r a n g e d motion study, MOD in the hope of o p t i m i z i n g o p e r a t i o n and i n c r e a s i n g labour e f f i c i e n c y . Motion study ensured s u p p l y - i n - t i m e from o u t s i d e s u p p l i e r s of our company. C. Experts consultation connects with participation of employees. SEbt had twice i n v i t e d e x p e r t s from Senior Expert S e r v i c e o~ Germany to h e l p c a r r y i n g out I n d u s t r i a l E n g i n e e r i n g a n a l y s i s . Meanwhile, SF_~ a l s o i n v i t e d domestic e x p e r t s from E n g i n e e r i n g and Technology U n i v e r s i t y of Shanghai and J i n Lin J o i n t - S t o c k Company to make d i a g n o s i s and c o n s u l t a t i o n on the w o r k s i t e . B e s i d e s , SI~ a l s o i m i t a t e d ways of Japan to let every employee participate in motion study. Basically speaking, the employees can use principles and methods of IE to make depth analysis of the operational processes in their posts after training. D.
I n t e g r a l e x e c u t i o n and up u t i l i z a t i o n
the f a c t o r s of p r o d u c t i o n
SI~ emphasized on r e c t i f i n g of labour o r g a n i z a t i o n , r e s p o n s i b i l i t i e s t r a n s f e r e n c e of q u a l i t y o b j e c t and wokesite management, a p p r a i s a l of q u a l i t y , IS0-9000 system e l e m e n t s a n a l y s i s and i n t e r n a l q u a l i t y a u d i t , as
17~ l m e r n a t ~ ! Confewnce on Compmers and Indus~l Engineering
~7
w e l l as c o n s t r u c t i o n of c o r p o r a t i o n c u l t u r e w i t h i n t i n d e r t a k i n g s . F u r t h e r m o r e , S I ~ c e n t r a l i z e d maintenance s e c t i o n and means of d e l i v e r y , s e t the q u a l i t y w o r k s i t e i n s p e c t i o n system and so on. SI~ has s u c c e s s f u l l y r e a c h e d the aim of the b e s t d i s p o s i t i o n and e f f i c i e n t improvement of p r o d u c t i o n factors. The f o l l o w i n g d a t a may d e s c r i b e the r e s u l t s of a p p l i c a t i o n I n d u s t r i a l E n g i n e e r i n g in our Company: • The p r o d u c t i v e c a p i t a l among t e n thousand yuan output v a l u e goes down 15~ . C a p i t a l t u r n o v e r of u n f i n i s h e d p r o d u c t s is l l days ahead in 1994 than in 1993, a p p r o x i m a t e l y 31.4~ f a s t e r . • .kfter motion s t u d y in Welding Shop, ten u n n e c e s s a r y motions a r e c a n c e l l e d and labour p r o d u c t i v i t y i n c r e a s e d by 30~ compared w i t h 1993. • ~l~e Case Shop m o d i f i e s and completes time s t a n d a r d a f t e r motion study and improves w o r k s i t e s u r r o u n d i n g to form "one c u r r e n t p r o d u c t i o n # - t h e r e is no p a r t s w a i t i n g to be machined in the l i n e . Unfinished p a r t s o~ the w o r k s i t e has d e c r e a s e d from 5000 to 500 pieces. • Last y e a r , as the s u g g e s t i o n s came from a l l l e v e l s . SEN got an idea to c e n t r a l i z e m a i n t e n a n c e f o r c e s in our company with e v e r y workshop kms i t s o~ri m a i n t e n a n c e groups. Then, Motorcycle Plant reduced 24 e m p l o y e e s , a b o u t 42g of the reduced r a t e ; u t i l i z e d 56 s e t s of r e p a i r equipments f o r o t h e r purposes which took 37% of the t o t a l ; Repair a r e a was saved about 1351 square meters; The r a t e of machine t r o u b l e goes down l e s s than lg~ Key equipment b r e a K d o ~ was l e s s than 0.5% and machine was m a i n t a i n e d on s c h e d u l e 100%. 2.
Future intentio~
Honda Motor Company hax implemented Lean P r o d u c t i o n f o r more than 20 y e a r s . While SF~ is going to spend 5 y e a r s ' effort to i n c r e a s e working e f f i c i e n c y by 50g. R e c e n t l y , SF_~ w i l l be engaged in c o l l e c t r e a s o n a b l e s u g g e s t i o n s on management system. The p r e l i m i n a r y idea is to take out I m i l l i o n P,q B y u a n f o r r e a s o n a b l e s u g g e s t i o n s e v e r y y e a r . SEMhas formed ~four q u i c k n e s s ~ principles, namely "To get r e a s o n a b l e s u g g e s t i o n s q u i c k ! y , to a p p r a i s e q u i c k l y , to improve and modify management s t a n d a r d and p r o c e s s manual q u i c k l y and to p r a i s e in cash quickly". Moreover,SF.~ will also establish an Industrial Engineering Department and advertise for employing IE engineers. SEM has just achieved initial results in developing Industrial Engineering and carrying out Lean Production, and has the confidence to build a chinese style Honda Company in the year 2005. Address; 999 Tong J i Road, Shanghai, P.R. China Zip Code. 201900 Fax 32092"/1
Pergamon
0360-8352(95)00077-1
Lean Product ion and I n d u s t r i a l E n g i n e e r i n g
Applied in China
....
wo.nq ~
Donq
Deputy General Manager with S~Ek Ck,r Motorcycle Company dc~,cz~¢
! . T h e a p p U m m l a n ll;endm'my l l ; o w m L.onn P r o d u o l ; l a n annd Incluml=rinl n=nglmmr~.g in C l a m . In the 3O's of this century, a research on werk efficiency and e f f e c t s turned f i r s t page in I n d u s t r i a l E n g i n e e r i n g . Western S o c i e t y , a f t e r the ~ortd ~ar I I , i n f i l t r a t e d ~ e f f i c i e n c y ~ i n t o v a r i o u s system of I n d u s t r i a l E n g i n e e r i n g , hence formed a s p e c i a l t c c i m i q u e named "Industrial Engineering". This management tecbmique effective utilization of resources pushed Western industry to develop as quickly as possible. Japan introduced a series of management tecbJ~iquc from European and the American a f t e r the 2nd war and combined i t s t r a d i t i o n a l c u l t u r e to e n r i c h and d e v e l o p I n d u s t r i a l E n g i n e e r i n g Theories, such as " creating new idea consciousness" and "Lean Production" and the later was Japanese successfu! application of Industrial Engineering. Therefore, Japanese Industry stepped into World Industry rank in several decades shortly. This was duc to creative practice in Industrial Engineering. Traditional Planning Economy and rigid way of production under which ignored "efficiency" and "profit" and made the operation of national economy slumber in low efficiency and low profit in a long period of time.
O~IE29:114-~
233
234
17th ~ter~tional Conference on C o m p u ~ a ~ l ~ t r ~ l Engineen~
S i n c e the 8 0 ' s of t h i s c e n t u r y , great changes were taken p l a c e in China owing to the r e f o r m i n g and opening p o l i c y . New thought and method of management began to e n t e r i n t o c h i n e s e i n d u s t r i a l fields. R e c e n t l y , f o r i n s t a n c e , Shanghai Automotive I n d u s t r y Corp. pushes a campaign of " c r i s i s management" of which main c o n t e n t s a r e Lean P r o d u c t i o n . This w i l l r e d u c e the cost of Santana ( a kind of car) to go down 5~ and labour p r o d u c t i v i t y up 5~ in c o n s e c u t i v e y e a r s , h s u r v e y from China Second Automotive Corp. shows t h a t the a p p l i c a t i o n of "Lean P r o d u c t i o n " in Gearbox P l a n t causes the output to be doubled than o r i g i n a l c a p a c i t y , and working c a p i t a l and p r o d u c t i v e workers reduced 50~, and labour p r o d u c t i v i t y is i n c r e a s e d one more time. Report from the F i r s t Automotive Corp. Gearbox P l a n t shows that the a d o p t i o n of lean p r o d u c t i o n makes the p l a n t ' s output v a l u e i n c r e a s e d 44.3~, labour p r o d u c t i v i t y i n c r e a s e d 37~ and p r o f i t per c a p i t a i n c r e a s e d 25.15 in h a l f a y e a r . The above a r e the c a s e s to p o i n t t h a t carrying forward advanced management t e c h n i q u e l i k e I n d u s t r i a i E n g i n e e r i n g and Lean P r o d u c t i o n ana in c o m b i n a t i o n w i t h c h i n e s e n a t i o n a l c o n d i t i o n s w i i l be an i r r e v e r s i b l e c u r r e n t . I t is a s h o r t cut f o r c h i n e s e c o r p o r a t i o n s to s t e p i n t o tile i ~ e r n a t i o n a l ~ a ; k e t .
~m T h e r ~ l ~ n ~ I~wee. Lean Produotion.
Inclua~'mml E n g i l ' m l l r l r t g
P o i n t I: I n d u s t r i a l E n g i n e e r i n g ~s the e n g i n e e r i n g p r o d u c t i ~ , t h e r e f o r e , pushing Lean P r o d u c t i o n f i r s t ~
base
and
of
Lean
G). Lean P r o d u c t i o n is the e x p r e s s i o o used ~" e x p e r t s of I n t e r n a t i o n a l Motbr V e h i c l e P l a n n i n g O r g a n i z a t i o n ( I ~ ) to p r a i s e J a p a n ' s "Canpain Production". "Lean ~ h e r e means as l e s s as p o s s i b i e , namely u s i n g n e c e s s a r y f a c t o r s of p r o d u c t i o n to m a n u f a c t u r e the p r o d u c t s demanded in the market ( or components needed by the next p r o c e s s ) . . ~ d a l i the o p e r a t i v e a c t i v i t i e s should be b e n e f i c i a l , e f f i c i e n t and economical. P r e s e n t l y , Lean P r o d u c t i o n is the b e s t o r g a n i z a t i o n a l s y s t e v and method used in the world i n d u s t r y , w h i l e I n d u s t r i a ! E n g i n e e r i n g is an e n g i n e e r i n g base to complete Lean P r o d u c t i o n and a i s o important p a r t of Lean P r o d u c t i o n . J a p a n e s e u n d e r t a k i n g s adopt o p e r a t i o n a l s t u d y , Motion s t u d y and time s t u d y t e c h n i q u e of I n d u s t r i a l E n g i n e e r i n g to implement Lean P r o d u c t i o n , Thus makes Lean P r o d u c t i o n stand on s c i e n t i f i c bases and i t is d i s t i n g u i s h e d and e f f i c i e n t . Certainly, c r e a t i v e a p p l i c a t i o n of I n d u s t r i a l E n g i n e e r i n g in Japanese b r i n g s not o n l y core changes in the ways of p r o d u c t i o n but a t s o r a d i c a i changes in o r g a n i z a t i o n a l system, management system, m a r k e t i n g v a l u e p o i n t
17th ~ t e r n a t w ~ l Conference on C o m p u ~ and Indus~ml Engineering
~5
concerning product development, q u a l i t y control, o u t s i d e - c o o p e r a t i o n management, customer r e l a t i o n s and so f o r t h which the most e f f e c t i v e i n f l u e n c e is Japanese c o r p o r a t i o n c u l t u r e . In the c o u r s e of learning and implementation 12, China must combine it with the a n a l y s i s of I n d u s t r i a l E n g i n e e r i n g and get down in i t from IE. P o i n t II: C a r r y i n g forward IS0-9000 in mainland E n g i n e e r i n g is the p r e c e d e n c e .
China,
Industrial
IS0-9000 is an i n t e r n a t i o n a l General S t a n d a r d worked out by International Standardized O r g a n i z a t i o n to a s s u r e the q u a l i t y of the product as well as q u a l i t y formed in a l i the p r o c e s s i n g l i n k s . In my o p i n i o n , the e s s e n c e of ISO - 9000 is to let the u n d e r t a k i n g s to adopt i n t e r n a t i o n a l s t a n d a r d i z e d q u a l i t y a s s u r a n c e system and q u a l i t y management system so as to e n s u r e the q u a l i t y of the p r o d u c t . Learning the i n t e n s i o n and e x t e n s i o n of I n d u s t r i a l E n g i n e e r i n g , we can see t h a t I n d u s t r i a l E n g i n e e r i n g is the p r e c e d e n c e of ISO-9000. Only a f t e r w i d e l y - f i n d i n g the q u e s t i o n s , c o m p l e t i n g o p e r a t i o n , o p t i m i z i n g management and f i n a l l y makig improvement on a l l p r o c e s s l i n k s in the p r o d u c t i o n chain can the q u a l i t y o~ the p r o d u c t s be e n s u r e d and the s t a n d a r d be implemented. The f a c t t h a t some i n t e r n a t i o n a l c o r p o r a t i o n s have got ISO's certificate without c o m p l e t e l y s o l v i n g the p~oblem of q u a l i t y proved t h a t c a r r y i n g out IS0 9000, one should do on the base of I n d u s t r i a l E n g i n e e r i n g .
111. l m p i l m l m l = , . , l l = i o n o f Urlclualr,r,iml E n g i r m i - i n g Produall;Ion In Sh~,,nghll - Ek Chop C : ~ y L i m i t , e ,<-.
and Lean Mol;or~yoill
Shanghai-Ek Chor Motorcycle Company Limited ( h e r e i n a f t e r refer to SE~) is a j o i n t v e n t u r e with equal s h a r e between Shanghai Automotive I n d u s t r y Corp. and Ek Chor Investment Co,, Hong Kong, a d i v i s i o n under Chia Tai Group, Thailand. E s t a b l i s h e d in 1985, SF_bt mainly produced two s e r i e s XingPu (which in c h i n e s e means " h a p p i n e s s " ) brand Motorcycles, namely, XT125 and XF250, ana about ten more kinds of p r o d u c t s . In 1994, SF_/d's annual output r e a c h e d 300,000 u n i t s and it is p l a n n i n g to manufacture 400,000 u n i t s in 1995. S i n c e the founding of the J o i n t Venture, SE/d's output i n c r e a s e d t e n more times and p r o d u c t s s e l l well as f a r as to A r g e n t i n a , N i g e r i a , I r a n , and Turkey. Besides, SEbt has been honoured as " v e n t u r e of advanced t e c h n o l o g y in Shanghai" e v e r y y e a r s i n c e 1986. )md from 1987, ~ has
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17th ~ t e r n a t w ~ l C o n ~ e
on Computers a ~ Induswml Engineering
been nominated as "Ten b e s t mantffacturing j o i n t venture nationwide " f o r seven years. SEM i s one of the l a r g e s t s i n o - f o r e i g n j o i n t venture and p r o f e s s i o n a l m o t o r c y c l e producer.
1 . P r a c t i c e and r e s u l t . Combined with Lean P r o d u c t i o n and I n d u s t r i a l Kngineering s i n c e the end of 1993, SK~ has p r a c t i s e d in the f o l l o w i n g ways: A. To have a c l e a r o b j e c t i v e and to have the u t i l i z a t i o n of various factors of production be increased greatly within ten thousand yuan industry net sales compared with Other companys of the same trade and that before pushing Industrial Engineering. B. To lay emphasis and to execute by steps. To solve two p r e s s i n g problems of our company production c a p a c i t y b o t t l e n e c k s and l o s i n g the c o n t r o l of p r o d u c t s p h y s i c a l q u a l i t y , S ~ developed I n d u s t r i a l e n g i n e e r i n g , pushed Lean P r o d u c t i o n smoothed m a t e r i a l flows and o p t i m i z e d p r o c e s s i n g o p e r a t i o n s . D e t a i l e d speaking, SI~ organized j u s t - i n - t i m e p r o d u c t i o n f o r the purpose of d e c r e a s i n g i n v e n t o r y and a r r a n g e d motion study, MOD in the hope of o p t i m i z i n g o p e r a t i o n and i n c r e a s i n g labour e f f i c i e n c y . Motion study ensured s u p p l y - i n - t i m e from o u t s i d e s u p p l i e r s of our company. C. Experts consultation connects with participation of employees. SEbt had twice i n v i t e d e x p e r t s from Senior Expert S e r v i c e o~ Germany to h e l p c a r r y i n g out I n d u s t r i a l E n g i n e e r i n g a n a l y s i s . Meanwhile, SF_~ a l s o i n v i t e d domestic e x p e r t s from E n g i n e e r i n g and Technology U n i v e r s i t y of Shanghai and J i n Lin J o i n t - S t o c k Company to make d i a g n o s i s and c o n s u l t a t i o n on the w o r k s i t e . B e s i d e s , SI~ a l s o i m i t a t e d ways of Japan to let every employee participate in motion study. Basically speaking, the employees can use principles and methods of IE to make depth analysis of the operational processes in their posts after training. D.
I n t e g r a l e x e c u t i o n and up u t i l i z a t i o n
the f a c t o r s of p r o d u c t i o n
SI~ emphasized on r e c t i f i n g of labour o r g a n i z a t i o n , r e s p o n s i b i l i t i e s t r a n s f e r e n c e of q u a l i t y o b j e c t and wokesite management, a p p r a i s a l of q u a l i t y , IS0-9000 system e l e m e n t s a n a l y s i s and i n t e r n a l q u a l i t y a u d i t , as
17~ l m e r n a t ~ ! Confewnce on Compmers and Indus~l Engineering
~7
w e l l as c o n s t r u c t i o n of c o r p o r a t i o n c u l t u r e w i t h i n t i n d e r t a k i n g s . F u r t h e r m o r e , S I ~ c e n t r a l i z e d maintenance s e c t i o n and means of d e l i v e r y , s e t the q u a l i t y w o r k s i t e i n s p e c t i o n system and so on. SI~ has s u c c e s s f u l l y r e a c h e d the aim of the b e s t d i s p o s i t i o n and e f f i c i e n t improvement of p r o d u c t i o n factors. The f o l l o w i n g d a t a may d e s c r i b e the r e s u l t s of a p p l i c a t i o n I n d u s t r i a l E n g i n e e r i n g in our Company: • The p r o d u c t i v e c a p i t a l among t e n thousand yuan output v a l u e goes down 15~ . C a p i t a l t u r n o v e r of u n f i n i s h e d p r o d u c t s is l l days ahead in 1994 than in 1993, a p p r o x i m a t e l y 31.4~ f a s t e r . • .kfter motion s t u d y in Welding Shop, ten u n n e c e s s a r y motions a r e c a n c e l l e d and labour p r o d u c t i v i t y i n c r e a s e d by 30~ compared w i t h 1993. • ~l~e Case Shop m o d i f i e s and completes time s t a n d a r d a f t e r motion study and improves w o r k s i t e s u r r o u n d i n g to form "one c u r r e n t p r o d u c t i o n # - t h e r e is no p a r t s w a i t i n g to be machined in the l i n e . Unfinished p a r t s o~ the w o r k s i t e has d e c r e a s e d from 5000 to 500 pieces. • Last y e a r , as the s u g g e s t i o n s came from a l l l e v e l s . SEN got an idea to c e n t r a l i z e m a i n t e n a n c e f o r c e s in our company with e v e r y workshop kms i t s o~ri m a i n t e n a n c e groups. Then, Motorcycle Plant reduced 24 e m p l o y e e s , a b o u t 42g of the reduced r a t e ; u t i l i z e d 56 s e t s of r e p a i r equipments f o r o t h e r purposes which took 37% of the t o t a l ; Repair a r e a was saved about 1351 square meters; The r a t e of machine t r o u b l e goes down l e s s than lg~ Key equipment b r e a K d o ~ was l e s s than 0.5% and machine was m a i n t a i n e d on s c h e d u l e 100%. 2.
Future intentio~
Honda Motor Company hax implemented Lean P r o d u c t i o n f o r more than 20 y e a r s . While SF~ is going to spend 5 y e a r s ' effort to i n c r e a s e working e f f i c i e n c y by 50g. R e c e n t l y , SF_~ w i l l be engaged in c o l l e c t r e a s o n a b l e s u g g e s t i o n s on management system. The p r e l i m i n a r y idea is to take out I m i l l i o n P,q B y u a n f o r r e a s o n a b l e s u g g e s t i o n s e v e r y y e a r . SEMhas formed ~four q u i c k n e s s ~ principles, namely "To get r e a s o n a b l e s u g g e s t i o n s q u i c k ! y , to a p p r a i s e q u i c k l y , to improve and modify management s t a n d a r d and p r o c e s s manual q u i c k l y and to p r a i s e in cash quickly". Moreover,SF.~ will also establish an Industrial Engineering Department and advertise for employing IE engineers. SEM has just achieved initial results in developing Industrial Engineering and carrying out Lean Production, and has the confidence to build a chinese style Honda Company in the year 2005. Address; 999 Tong J i Road, Shanghai, P.R. China Zip Code. 201900 Fax 32092"/1