Download the case of flexible manufacturing

ROLE OF ADVANCED MANUFACTURING TECHNOLOGIES IN
ENAHANCING THE COMPETITIVENESS OF INDIAN MANUFACTURING
INDUSTRY IN THE LPG REGIME: A STUDY WITH FOCUS ON LEAN
MANUFACTURING
Abstract of the Paper:
Because of the ever-increasing pressure caused by changing customer preferences and
also the utmost rapidity of technological innovations, the developed world has for quite a long
time been adopting computerized automation in many a manufacturing process. This has resulted
in mass production being gradually replaced by low volume but high variety production. This
paradigm shift has underlined the much desired “flexibility” in the manufacturing system to meet
the challenges caused by the increasingly pluralistic markets of the world economies, particularly
in view of the economic liberalisation measures sweeping across the globe. Shorter lead times
and reduced work-in-process result in significant economy in manufacturing. Computerised
Numerically Controlled (CNC) machines, by virtue of their advanced features, can manufacture
components completely or almost completely in a single set up, and hence provides flexibility in
such areas as Operations, Quality, Products, Process and Machines. CNC machines coupled with
industrial robots and automated guided vehicles (AGVs) can greatly reduce human intervention
and human inaccuracy, and hence can very significantly increase the overall efficiency of
production processes. Accordingly, greater flexibility is increasingly being added to the
manufacturing systems the world over.
A further step ahead of the incorporation of flexibility in manufacturing systems has been
the emergence of lean manufacturing, and a still further step ahead is that of agile manufacturing.
Both lean and agile manufacturing are represent “new systems of doing business” and they prove
themselves to be paradigm shifts from established notions of mass production. These systems
though originated in typical manufacturing settings have grown to such an extent that they can
very meaningfully be applied even at the enterprise level for superior business performance.
Lean manufacturing embraces many of the modern manufacturing concepts like flexible
manufacturing, minimizing the work-in-process, “pull” systems of production control, and set-up
time reduction. Lean manufacturing essentially involves four principles viz. (i) minimize waste,
(ii) perfect first-time quality, (iii) flexible production and (iv) continuous improvement. Needless
to mention, for a developing country like India, each of the above four parameters has got
tremendous strategic significance, as these have a direct bearing on industrial productivity and
manufacturing competitiveness.
In view of the ever growing pressures of globalisation in general and the stagnancy in the
performance of the Indian manufacturing sector during the last decade in particular, of late, the
central government is giving top importance in enhancing the manufacturing competitiveness of
Indian industry. This is primarily because of the fact that the contribution of industrial sector to
the total GDP is stagnant over the years (at about 17 percent since 1990) in spite of the
appreciable growth in the services sector which has reached nearly 55 percent as of now. For a
sustained and balanced growth of the economy, the above level of performance of industrial
sector in general and that of manufacturing sector (within the industrial sector) in particular is
not at all sufficient. What is required is enhanced competitiveness and efficiency of the
manufacturing sector. Further, another disappointing feature of Indian economy is the not-soencouraging growth of the SSI sector, which in turn inhibits fast economic development of this
developing nation and also makes it imbalanced.
The above state of affairs has prompted the policy makers to contemplate on
manufacturing competitiveness of the nation, particularly the one with respect to the small scale
sector. Accordingly, a separate council called NMCC (National Manufacturing Competitiveness
Council) has been constituted by the Government of India in 2004. “The National Strategy for
Manufacturing” released by NMCC in March 2006 points out “a high level of 8 to 10 GDP
growth and providing gainful employment annually to over eight million boys and girls will be
possible only when the different elements of the economy are competitive both in terms of
quality and costs.” The above strategy of NMCC further points out, “To unleash the creative
energies of Indian entrepreneurs, businessmen, scientists, engineers and other professionals, and
to create the right type of employment the manufacturing operations will have to grow faster
than other sectors. The share of “manufacturing” should be raised to 30 to 35 percent of the GDP
by the year 2020.
In view of the foregoing, it may be stated that lean manufacturing has got special
significance in India as a modern manufacturing philosophy. It has got the potential to enhance
the competitiveness of Indian manufacturing to a large extent, and also to ensure a balanced
economic development of the nation through increased thrust on development of the small-scale
sector. In the above context, this paper looks into the suitability of lean manufacturing systems
in the Indian context in the ongoing deregulated economic environment as a competitive tool for
improving the performance of the Indian manufacturing sector. It looks into the characteristics,
advantages and limitations, trend in respect of implementation etc. of lean manufacturing
systems. Its suitability in India vis-à-vis the experiences in other major nations is paid special
attention. The paper is based on extensive review of relevant literature available from reliable
sources and it concludes with the optimism that Indian manufacturing sector can reap significant
benefits by embracing modern manufacturing technologies like lean manufacturing.
Key Words: AMT, FMS, Lean Manufacturing.