IMPLEMENTATION OF THE LEAN-KAIZEN APPROACH IN FASTENER INDUSTRIES USING THE DATA ENVELOPMENT ANALYSIS

Abstract

This research paper is an attempt to improve the quality system of ten small scale fastener manufacturing industries through the implementation of the Lean-Kaizen approach using the Data Envelopment Analysis (DEA) Charnes Cooper & Rhodes (CCR) model with constant returns to scale (CRS). Output maximization is taken as the objective function to identify the percentage scope of improvements. The data is collected by paying personal visits to the selected industries for three inputs (manpower, maintenance, and training of employees) and two outputs (quality, on-time delivery) of their quality system. The DEA CCR model is applied to identify efficiency scores of the quality system by taking the most efficient industry as a benchmark for the rest of the organizations. The Lean-Kaizen approach is applied to identify waste / non-value added activities in outputs of the selected industries. Four Kaizen events are proposed to eliminate waste / non-value added activities in their quality system. The data collected after the Kaizen events are further analyzed by the DEA CCR model. The improvements in efficiency scores of the selected industries are presented as findings in this research paper. Two fastener industries became 100% efficient while the rest of the organizations reported 8% to 49% improvements in their efficiency scores of the quality system. The conclusions are made as the Lean-Kaizen using DEA is found to be an effective approach to improve the quality system of fastener industries. This study will be beneficial for researchers, practitioners and academicians for tackling the inefficiencies in the organization.