Production Management Model to Reduce the Percentage of Defectives by Applying Lean Manufacturing Tools in a Textile Sector: A case study

Abstract

This research project focused on addressing the high percentage of defectives in a Small and Medium-Sized Enterprise (SME) in Peru's textile sector. Production defects had impacted the overall profitability. To mitigate these issues, three key Lean Manufacturing tools were implemented: 5S, SMED (Single-Minute Exchange of Dies), and Standardized Work. The main goal of this project was to decrease the rate of defective products, improving production efficiency while upholding high-quality standards. The outcomes achieved following the implementation of the three tools were extremely positive. The 5S methodology showed significant improvements, as evidenced by the final evaluation score of 72,06%, surpassing the initial score of 32,35%. The SMED tool achieved a notable reduction in production process time, decreasing it to 148,26 minutes. Lastly, the application of Standardized Work increased efficiency from 96,69% to 97,69% and contributed to reducing the percentage of defective products from 2,65% to 1,64%. Additionally, an economic flow analysis with improvements was conducted, requiring an investment of $8 705,97. The economic results included a Net Present Value (NPV) of $11 924,87, an Internal Rate of Return (IRR) of 48,36%, and a Benefit-Cost Ratio (B/C) of 2,37. It was also concluded that the invested amount was recovered in 3,74 months.