Final Copy of Mgt 330

Imolementation on Lean System 1
INDEPENDENT UNIVERSITY, BANGLADESH

Course Name: Introduction to Product and Operation Management
Course ID: MGT 330
REPORT ON
“Imolementation on Lean System"
SUBMITTED TO
Mr. Mamun Rashid

Lecturer,
School of Business
SUBMITTED BY
S. M. Nadim 1420853
Samsun Nahar Kamara 1420924
Rafiq Awal Khusi 1620484
Md. Nazmul Huda Labon 1330444
SUBMISSION DATE
28th November, 2018
LETTER OF TRANSMITTAL
28 November, 2018
Mr. Mamun Rashid

Lecturer,
School of Business,
Independent University, Bangladesh.
Subject : Submission of survey report on "Imolementation on Lean System".
Dear Madam,
It’s my pleasure to submit you our survey report on "Imolementation on Lean System". The job is
assigned to our group to fullfill the partial requirement of MGT-330 Subject.We have completed
our survey. We have furnish our report based on our practical experience.The report focuses
mainly on the imporatce of the lean system process and the beneift of the garments industry.
In the writing of the report I have tried to follow all the guidelines provided by you and tried to
make my analysis in an effective way. I got enough support and information for preparing my
report on time from you and from the company.
Would you please kindly accept our paper and oblige us thereby.
Sincerely yours,
S. M. Nadim
ID: 1420853
Dept. Human Resources Management.
ACKNOWLEDGEMENT
At first I would like to express my special thanks of gratitude to almighty Allah and my
supervisor “Mr. Mamun Rashid” for his able guidance and support in completing my project.
Without whose support and suggestions this study would not have been possible in the first place
and for providing valuable advice on the successful completion of this project. The support that he
gave truly helps the progression and the smoothness of the Mgt 330 program.
I would also like to extend my gratitude to them who also helped me in completing my MGT
330 project. I came to know about so many new things and I am really thankful to them.
Secondly I would also like to thanks my parents and my friends helped me a lot in finalizing
this project within the limited time frame. I am very grateful to the Manager of those industry who
help us by giving the information.
I am very much obliged who extended their whole-hearted cooperation during my survey
period. I would like to thank all my co-workers for their overall support and cooperation during
my survey in the industry.
S. M. Nadim
ID : 1420853
Executive Summary
Our survey on garments industry in Bangladesh the implementation of lean system. In our country
most of the garments industry do not use lean process. Many of garments do not know about lean
process at all. Some of high profile garments like group of industries like Square group, Beximco
Group, DBL group etc. Some of garments which are in 10th position such as Hamim group, Tazreen
fashions, Mishupi Bitopi etc they are trying to implemnt the lean system. Some of foreign
consultency firm are working on it. We discussed with some company about lean system and they
inform us the production cost would be deccreases and profit margin increases also. We hope the
implementation of lean system will make a big profit to our garments industry today or tomorrow.
TABLE OF CONTENTS
INTRODUCTION 9
1.1 Lean for Production and Services 18

1.2 Why “LEAN”? 18
1.3 Purpose, Process, People 19
1.4 Lean Production 19
1.5 Tim wood 20
1.6 Additional wastes 20
1.7 Background of the survey 21
1.8 Purpose of the survey 21
1.9 Lean Practices 22
2.0 The Survey 25
Conclusion 27
References 28
A Survey Questionnaire: Barriers of Implementing of Lean

Manufacturing in different industries in Bangladesh
Company Information:
1. Please tick (√) the category that best describes of your company (tick one)
Woven Knitting Sweater Textile
FMCG Cosmetics Apartment/Construction Furniture

Business
Tobacco Light Engineering Leather Pharmaceutical

Industry Industry
2. Please indicate your position in the company (check one)
Production Manager/ Supervisor General Manager
Factory Manager Director/ Managing Director
Manager (Quality Control) Manager (Industrial Engineering)
Floor In-charge Operation Manager
3. Please indicate how many employees currently employed in your company? (Check one)
25 to 99 Workers/ Employees 100 to 250 Workers/ Employees
251 to 1000 Workers/ Employees More than 1000 Workers/

Employees
4. Please write your company name and address
Lean Practices:
5. Are you familiar with the following terms (check all that apply)?
Familiar Not Familiar

Lean Management
Lean Production/ Lean Manufacturing
Just in Time (JIT)
Toyota Production system (TPS)
6. Please tick (√) the degree of implementation of each of the lean tools and techniques in your
factory/organization (lean elements) using the scale of 1-5.
Key:
of
of
of
of
1. No implementation
2. Very low level of implementation
Very low level

No implementation
level
3. Low level of implementation
level
implementation
implementation
implementation
implementation
level
4. Moderate level of implementation
5. High level of implementation
Moderate
High
Low
Lean Tools and Techniques(lean 1 2 3 4 5
elements)
Value stream mapping (VSM)
5s method
Kanban system/Pull system of material
Just-in-time (JIT)
Continuous flow/One- piece flow
Cellular manufacturing/Group technology
Quick changeover/single minute exchange of
dies (SMED)
Standardize work
Bottleneck analysis
Leveling production and schedules
(Heiiunka)
Total production maintenance (TPM)
Visual management (Andon)/Notification
system for quality and process problems
Error proofing (Poka-Yoke)
Continuous Improvement
Multifunctional Teams (MT)
5 WHY analysis
Root cause analysis (fish bone diagram)
Plan do-check- act (PDCA) cycle
Go to where the problem is and see
Takt time
7. Please tick (√) the barriers of lean implementation in your factory from your practical experience.
The following are the tentative barriers that you might have faced while implementing lean in your
organization.
Please tick () the appropriate box on a scale of 1-5
Key:
nor
1. Strongly disagree
2. Disagree
3. Neither agree nor disagree
Strongly disagree
agree
4. Agree
strongly agree
5. strongly agree
Disagree
disagree
Neither
Agree
Barriers of lean system implementation 1 2 3 4 5
1. Lack of top management support/

Insufficient support from top management
2. Lack of vision or long-term philosophy by
top management
3. Inability to quantify benefits of lean system
4. Lack of time to implement
5. Lack of lean culture in the company
6. Budget constraints/ resource shortage
7. Employee resistance to change to a new
system
8. Lack of communication
9. Lack of understanding of lean
manufacturing concepts/ insufficient
knowledge about lean system
10. The nature of our manufacturing process
and facilities
11. High turnover (job leaving) of workers
(workforce)
12. Lack of awareness about lean tools by top
management
13. Lack of knowledgeable workforce
14. Lack of know-how regarding lean
implementation
15. Lack of lean consultants or consulting
firm/organization
8. Please mention (if) any other barrier or any other

comment:……………………………………………………………………………………………
………………………………………………………………………………………………….


Business

Industry Industry

Employees
Lean Practices:

Lean Management
Just in Time (JIT)
Key:
of
of
of
of
Very low level

No implementation
level
level
implementation
implementation
implementation
implementation
level
Moderate
High
Low
elements)
5s method
Just-in-time (JIT)
dies (SMED)
Standardize work
Bottleneck analysis
(Heiiunka)
5 WHY analysis
Takt time
organization.
Key:
nor
7. Disagree
Strongly disagree
agree
9. Agree
strongly agree
10. strongly agree
Disagree
disagree
Neither
Agree

top management
system
and facilities
(workforce)
management
implementation
firm/organization

comment:……………………………………………………………………………………………
………………………………………………………………………………………………….


Business

Industry Industry

Employees
Lean Practices:

Lean Management
Just in Time (JIT)
Key:
of
of
of
of
Very low level

No implementation
level
level
implementation
implementation
implementation
implementation
level
Moderate
High
Low
elements)
5s method
Just-in-time (JIT)
dies (SMED)
Standardize work
Bottleneck analysis
(Heiiunka)
5 WHY analysis
Takt time
organization.
Key:
nor
12. Disagree
Strongly disagree
agree
14. Agree
strongly agree
15. strongly agree
Disagree
disagree
Neither
Agree

top management
system
and facilities
(workforce)
management
implementation
firm/organization

comment:……………………………………………………………………………………………
………………………………………………………………………………………………….


Business

Industry Industry

Employees
Lean Practices:

Lean Management
Just in Time (JIT)
Key:
of
of
of
of
Very low level

No implementation
level
level
implementation
implementation
implementation
implementation
level
Moderate
High
Low
elements)
5s method
Just-in-time (JIT)
dies (SMED)
Standardize work
Bottleneck analysis
(Heiiunka)
5 WHY analysis
Takt time
organization.
Key:
nor
17. Disagree
Strongly disagree
agree
19. Agree
strongly agree
20. strongly agree
Disagree
disagree
Neither
Agree

top management
system
and facilities
(workforce)
management
implementation
firm/organization

comment:……………………………………………………………………………………………
………………………………………………………………………………………………….
INTRODUCTION
Our team survey on five several garments company in Bangladesh. Three of them are in same
group of company. The company is DBL group and it is the one of the most leading group I
Bangladesh. And the two of others are another garments company which are not in leading
position. We survey on two types of company so that we can compare among them what kind of
lean implementation is there applied?
1.1 Lean for Production and Services

A popular misconception is that lean is suited only for manufacturing. Not true. Lean applies in
every business and every process. It is not a tactic or a cost reduction program, but a way of
thinking and acting for an entire organization.
Businesses in all industries and services, including healthcare and governments, are using lean
principles as the way they think and do. Many organizations choose not to use the word lean, but
to label what they do as their own system, such as the Toyota Production System. The word lean
transformation is often used to characterize a company moving from an old way of thinking to lean
thinking. It requires a complete transformation on how a company conducts business. This takes a
long-term perspective and perseverance.
1.2 Why “LEAN”?

The term "lean" was coined to describe Toyota's business during the late 1980s by a research team
headed by Jim Womack, Ph.D., at MIT's International Motor Vehicle Program.
The characteristics of a lean organization and supply chain are described in Lean Thinking, by
Womack and Dan Jones, founders of the Lean Enterprise Institute and the Lean Enterprise
Academy (UK), respectively. While there are many very good books about lean techniques, Lean
Thinking remains one of the best resources for understanding "what is lean" because it describes
the thought process, the overarching key principles that must guide your actions when applying
lean techniques and tools.
1.3 Purpose, Process, People

Womack and Jones recommend that managers and executives embarked on lean transformations
think about three fundamental business issues that should guide the transformation of the entire
organization:
Purpose: What customer problems will the enterprise solve to achieve its own purpose of
prospering?
Process: How will the organization assess each major value stream to make sure each step is
valuable, capable, available, adequate, flexible, and that all the steps are linked by flow, pull, and
leveling?
People: How can the organization ensure that every important process has someone responsible
for continually evaluating that value stream in terms of business purpose and lean process? How
can everyone touching the value stream be actively engaged in operating it correctly and
continually improving it?
"Just as a carpenter needs a vision of what to build in order to get the full benefit of a hammer,
Lean Thinkers need a vision before picking up our lean tools," said Womack. "Thinking deeply
about purpose, process, and people is the key to doing this."
1.4 Lean Production

Lean production is an approach to management that focuses on cutting out waste, whilst ensuring
quality. Lean production aims to cut costs by making the business more efficient and responsive
to market needs. This approach sets out to cut out or minimize 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 business.
Lean production originated in the manufacturing plants of Japan, but has now been adopted well
beyond large and sophisticated manufacturing activities.
The lean production can be described to be doing some specific things while the production.
Doing the simple things well
Doing things better

Involving employees in the continuous process of improvement and as a result, avoiding waste
By simply being aware of

Time based management
Simultaneous engineering
Just in time production (JIT)
Cell production
Kaizen (Continuous improvement)
Quality improvement and management
1.5 Tim wood

The concept of lean production is an incredibly powerful one for any business that wants excel in
the new world. Lean addresses 7 types of waste or waste known as TIMWOOD
1. Transport
2. Inventory
3. Motion
4. Waiting
5. Over Production
6. Over-Processing
7. Defects
1.6 Additional wastes

Waste of Talent
Failing to make use of the people within your organization. This is an issue that many of our
companies in the West fail to address. We still tend to operate within a command and control
environment and take little real notice of what our employees really think and what they can
contribute. Your employees are your greatest asset by far and can help you to drive out many of
the other wastes.
Waste of resources
Failure to make efficient use of electricity, gas, water. Not only does this waste cost you money it
is also a burden on our environment and society as a whole.
Wasted materials
It is too often off-cuts and other byproducts are just sent to landfill rather than being utilized
elsewhere.
1.7 Background of the survey

Bangladesh is one of the fastest developing countries in the world. Currently it is in the 6th position
in fastest production based country. Because of off shoring, free lancing manufacturing and cutting
cost for the major brands all over the world, Bangladesh got the chance to start many small/mid/
large production houses.
Within all the productions, Bangladesh really excelled in the garments producing and exporting.
In order to understand the current process and to introduce the groundbreaking idea called “LEAN”
this survey is made.
1.8 Purpose of the survey

If the survey shows that the most of the manufacturing companies follow lean than it has already
became a well-practiced system in Bangladesh. If the survey shows otherwise then there can be
room for improvement and other methods should be applied in order to make lean system a norm
with in Bangladesh manufacturers.
Training opportunities
Free seminars on “LEAN”
Introducing new subjects regarding the “LEAN” management.
1.9 Lean Practices

• Lean Management
Lean production is an 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.
Name Familiar Not Familiar
1. A. R. Apparels Ltd. 1
2. S.M.S. Fashions 2
3 Shovon Group Of Companies 1
4. Koromi Knite Composite Ltd. 1
Familiar
18% 15%
1. A. R. Apparels Ltd.
2. S.M.S. Fashions
20% 3 Shovon Group Of Companies
47% Koromi Knite Composite Ltd.
Figure: 1.1 Familiar with Lean Management
Not Familiar
2. S.M.S. Fashions
3 Shovon Group Of Companies
Koromi Knite Composite Ltd.
100%
Figure: 1.2 Not Familiar with Lean Management

• Lean Production/ Lean Manufacturing

Lean production aims to cut costs by making the business more efficient and responsive
to market needs. Lean Manufacturing
Company Name Familiar Not Familiar

4. Korom Knite Composite Ltd. 1
Familiar
25% 25%
2. S.M.S. Fashions
25% 25%
koromi Knite Composite Ltd.
Figure: 1.3 Familiar with Lean Manufacturing
• Just in Time (JIT)

Just in Time originally referred to the production of goods to meet customer demand exactly, in time,
quality and quantity, whether the `customer' is the final purchaser of the product or another process
further along the production line. Just in Time (JIT)
4. Korom Knite Composite Ltd. 1
Familiar
25% 25%
2. S.M.S. Fashions
25% 25%
Korom Knite Composite Ltd.
Figure: 1.4 Familiar with Lean (Just In Time)
• Toyota Production System (TPS)
Toyota Production System (TPS) is a system that was developed initially to account for the
specific issues facing one company. The revolutionary ideas and concepts pioneered at Toyota
have been used in many other organizations and industries throughout the world. Value is truly the
central focus of TPS. By defining and understanding value, TPS has evolved to help companies
maximize value. In this system all activities relating to the manufacturing process are classified as
adding value or waste.
Toyota Production System (TPS)

4. BSCI Apparels Ltd. 2
Familiar
2. S.M.S. Fashions
Figure: 1.5 Familiar with Toyota Production System (TPS)

Not Familiar
33% 34% 2. S.M.S. Fashions
Figure: 1.6 Not Familiar with Toyota Production System (TPS)
2.0 The Survey

Implementation Status of Lean Tools and Techniques Analysis
Status of No Very low Low level of Moderate High level of

Lean Tools implementati level of implementati level of implementation
and on implementati on implementati
Techniques on on
Value stream 33% 0% 16% 33% 17%
mapping
(VSM)
5s method 34% 16% 0% 50%
Kanban 16% 0% 16% 0% 68%
system/Pull
system of
material
Just-in-time 16% 0% 0% 16% 68%
(JIT)
Continuous 16% 16% 0% 0% 68%
flow/One-
piece flow
Cellular 50% 0% 0% 50% 0%
manufacturing
/Group
technology
Quick 16% 0% 0% 34% 50%
changeover/si
ngle minute
exchange of
dies (SMED)
Standardize 0% 0% 16% 34% 50%

work
Bottleneck 50% 0% 0% 0% 50%
analysis
Leveling 16% 0% 16% 36% 36%
production
and schedules
(Heiiunka)
Total 0% 0% 16% 34% 50%
production
maintenance
(TPM)
Visual 16% 0% 0% 16% 68%
management
(Andon)/Notif
ication system
for quality and
process
problems
Error proofing 33% 0% 0% 17% 50%
(Poka-Yoke)
Multifunction 17% 17% 0% 50% 16%
al Teams
(MT)
5 WHY 17% 17% 0% 33% 33%
analysis
Root cause 17% 0% 17% 50% 16%
analysis (fish
bone diagram)
Plan do- 33% 0% 17% 0% 50%
check- act
(PDCA) cycle
Go to where 0% 0% 0% 34% 66%
the problem is
and see
Takt time 16% 0% 17% 17% 50%
Continuous 0% 17% 0% 50% 33%
Improvement
Barrier Of the Implementation

Barriers of lean Strongly Disagree Neither agree nor Agree Strongly
implementation disagree disagree agree
Lack of top management 66% 17% 0% 17% 0%
support
Lack of vision or long 33% 33% 0% 34% 0%

term philosophy by top
management
Inability to quantify 0% 33% 33% 34% 0%
benefits
Lack of time to 17% 17% 16% 50% 0%
implement
Lack of lean culture 0% 17% 50% 33% 0%
Budget 33% 0% 17% 33% 17%
constraint/Resource
shortage
Employee resistance 17% 0% 66% 17% 0%
Lack of communication 33% 33% 34% 0% 0%
Lack of understanding of 17% 33% 17% 17% 16%
lean manufacturing
concepts
The nature of our 17% 33% 33% 0% 16%
manufacturing process
and facilities
High turnover of workers 17% 33% 17% 33% 0%
(workforce)
Lack of awareness of lean 17% 17% 17% 33% 16%
tools by top management
Lack of knowledgeable 0% 17% 33% 50% 0%
workforce
Lack of know-how 0% 33% 17% 17% 33%
regarding lean
implementation
lack of lean consultants or 17% 0% 33% 33% 17%
consulting
firm/organization
Conclusion
At the end of this report on the basis of the survey we can say that the three companies are the top
level company in Bangladesh and they are also top of using lean process in their factory and proper
use of workers. They are the most exporting company in our country and they research on JIT,
Toyota production system, Lean manufacturing as well as Lean Management. Now they are
consulting to other companies using lean management.
References

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Imolementation on Lean System 1

INDEPENDENT UNIVERSITY, BANGLADESH

“Imolementation on Lean System"

Mr. Mamun Rashid

Mr. Mamun Rashid

Subject : Submission of survey report on "Imolementation on Lean System".

1.1 Lean for Production and Services 18

A Survey Questionnaire: Barriers of Implementing of Lean

Woven Knitting Sweater Textile

FMCG Cosmetics Apartment/Construction Furniture

Tobacco Light Engineering Leather Pharmaceutical

Production Manager/ Supervisor General Manager

Factory Manager Director/ Managing Director

Manager (Quality Control) Manager (Industrial Engineering)

Floor In-charge Operation Manager

25 to 99 Workers/ Employees 100 to 250 Workers/ Employees

251 to 1000 Workers/ Employees More than 1000 Workers/

4. Please write your company name and address

Familiar Not Familiar

Lean Production/ Lean Manufacturing

Just in Time (JIT)

Toyota Production system (TPS)

Very low level

1. Lack of top management support/

8. Please mention (if) any other barrier or any other

A Survey Questionnaire: Barriers of Implementing of Lean

Woven Knitting Sweater Textile

FMCG Cosmetics Apartment/Construction Furniture

Tobacco Light Engineering Leather Pharmaceutical

Production Manager/ Supervisor General Manager

Factory Manager Director/ Managing Director

Manager (Quality Control) Manager (Industrial Engineering)

Floor In-charge Operation Manager

25 to 99 Workers/ Employees 100 to 250 Workers/ Employees

251 to 1000 Workers/ Employees More than 1000 Workers/

10. Please write your company name and address

Familiar Not Familiar

Lean Production/ Lean Manufacturing

Just in Time (JIT)

Toyota Production system (TPS)

Very low level

16. Lack of top management support/

14. Please mention (if) any other barrier or any other

A Survey Questionnaire: Barriers of Implementing of Lean

Woven Knitting Sweater Textile

FMCG Cosmetics Apartment/Construction Furniture

Tobacco Light Engineering Leather Pharmaceutical

Production Manager/ Supervisor General Manager

Factory Manager Director/ Managing Director

Manager (Quality Control) Manager (Industrial Engineering)

Floor In-charge Operation Manager

25 to 99 Workers/ Employees 100 to 250 Workers/ Employees

251 to 1000 Workers/ Employees More than 1000 Workers/

16. Please write your company name and address

Familiar Not Familiar

Lean Production/ Lean Manufacturing

Just in Time (JIT)

Toyota Production system (TPS)

Very low level