Implementation of Lean Manufacturing to Improve Production Efficiency: A Case Study of Electrical and Electronic Company in Malaysia

Abstract

The manufacturing industry plays a crucial role in the economy development of a country includes Malaysia. Lean manufacturing is a production method that aims to minimize waste and optimize efficiency in the manufacturing process. By applying lean manufacturing, it enables a company to pursues continuous improvement and integration of labor with a clear focus on value adding activities and elimination of waste. However, this concept is still not widely being applied by all type of company or limited in certain aspects only. This study aims to implement lean concept into a medium sized electronic company in Malaysia named as Company ABC, particularly to improve the efficiency of the production line. Company ABC is expanding its production line, thus looking forward to implement 8 Waste and VSM to improve the Line Balancing Rate and improve the line productivity from 1500 units/ week to 3000 units / week. The clarifications lead to this study is to understand, how the Implementation of Lean Manufacturing can help to improve the production line efficiency, what are the factors that causes producibility issues during design development stage and what are the area of improvement of the manufacturing line of Model X that could be enhanced and applied in this particular project. The goal of this study is to assess the contribution of Lean six sigma in the company to increase the process line productivity and maximize the efficiency of the production process. A model was developed to simulate the efficiency improvement of the production line after application of Lean Manufacturing.