Productivity Improvement Study In Factory D Based On Lean Production Principles

With the fast globalization, China becomes the main partner and player in global manufacturing group. Company D, which is a famous global company set up a plant in China in 2006, delivers parts to the global market. In past years, cost of raw material and labor increased very much, and the competition became harder and harder. Especially from the economy crisis in 2008, business of market is getting more and more competitive. All companies are focusing on earning more market sharing and cost reduction. Company D also considers cost reduction as developing basis, and puts it into strategy so as to have high priority.This thesis expounds basic principles of lean production, and analyzes its characters and advantages comparing with mass production, expounds how to reduce waste. Based on company D’s status, the thesis addresses how to increase productivity by using lean principles. It studies value of order demand in low and high seasons, and sets up flexible manpower system, analyzes waste in production line and reduces waste by optimizing layout, manpower planning, WIP, process, etc. so as to increase productivity, setup effective monitor system to ensure all actions can be sustained effectively.The end of this thesis summarizes the experience got during the project, sorts out good approach and idea on productivity increasing, and builds up a useful system for continuous improvement in the future. It states a monitor system to sustain execution, and shows perspective for future improvement.In this thesis, though the cases studies are all based on the data and facts collected from company D, the conclusions and ideas can be a good example for other companies use as reference for productivity improvement.