Abstract:
This research aims to apply the lean production technique in order to improve the manufacturing system of Bao process line. The current problem found on high inventory cost, average of 5,148,286 baht/month, when comparing with the average purchase order 7,710,744 baht/month. This means that the actual average usage only 2,562,458 baht/moth. Insufficient volume of finish goods to meet customer demand and unbalanced production line were the other problems leading to lower process efficiency at 61.88% when the target set at 90%. Therefore, the lean production technique was implemented to reduce wastes in manufacturing system and create the value added to company.
Value stream mapping is used as a tool for data gathering and identifying the wastes. The problem was found at the department of warehouse and production. Cause and effect diagram is also used to analyze the root cause then many lean tools were applied to reduce 7 wastes, for example, ECRS, inventory management, pull system, time study and line balancing.
After implementation, the results showed that at the warehouse department, purchasing cost reduced to 52.18%, inventory level reduced to 82.57%, cycle time of purchasing process reduced to 80.66% and material lead time reduced to 77.14%. At the production department, line balancing improved by 96.64%, process efficiency increased by 43.20%, cycle time of production reduced to 48.41% and direct labor cost was also saved to 54,000 baht per every 120,000 pieces.