Space utilization improvement in CNC machining unit through lean layout

Lean is the term used to describe the production system developed by the Toyota company in the post World War II years. "Lean" comes from the ability to achieve more with less resource, by continuous elimination of waste. Ess Enn Auto CNC Private limited is a leading small scale company manufacturing precision machined components for the past 30 years in Bangalore. The enthused customers of Ess Enn Auto CNC have raised the production demand which could not be fulfilled with existing facilities. In order to continue serving increased customer needs, Ess Enn planned to acquire nine new machines additionally. The space constraint provided an opportunity to integrate lean techniques into the facility layout to accommodate all the new machines and to optimise the material movement with minimal investment.

The existing layout was modelled using AutoCAD, software. Product, processing, and resource data were collected to analyse current layout deliverable levels (space utilisation, material travel distance, material handling cost, etc). Alternate layouts were generated using lean layout concepts such as ‘group technology’ and ‘systematic layout planning’, which facilitate relocating the equipment according to product processing. A suitable layout with efficient space utilisation and effective material handling was selected. This selected layout was validated and recommended for implementation.

The money saved in Unit-2 monthly rent and overall material movement optimization will lead to a savings of INR 6, 72, 828 per annum. The recommended layout will incurs an estimated investment of INR 9, 90, 456 and the ROI will be 1.83 years. The new layout will free up half of the underground floor which can be used for future expansion. The flames of lean philosophy in Ess Enn have been fuelled by executing new layout, and this new layout will craft an opportunity to taste the other flavours of lean concepts such as 5S, Kanban, JIT, small lot production, etc.