Reduction of Scrap and Rework Cost
by Implementing 5S Methodology:
A Case Study
Gnanesh Vora, Hemendrasinh Umat, Soni Kumari, Dinbandhu,
Chetansingh Rajput, and Kumar Abhishek
Abstract India’s small and medium enterprises (SME) has around 45% contribution
to the total manufacturing output of the country. SMEs face the problem of scrap and
rework generation because of improper workplace organization and inappropriate
treatment of raw materials as well as finished goods. Due to rework problems, the
overall quality of the product is also compromised. Such problems hike the overall
manufacturing cost resulting in a thin profit margin by the firms. A little reduction in
expenses at a small-scale can be effective in the overall manufacturing cost in industries. This case study focuses on the reduction of scrap and rework cost, along with
solving the operations and management-related problems in an enterprise. Based on
the 5S methodology, a special-purpose machine (SPM) has been made and implemented in an Indian firm, which reduces approximately 5% scrap and rework cost in
a duration of 3 months.
Keywords Scrap · Rework · Cost reduction · 5S method · SMEs
1 Introduction
With the development of new technologies and methods, the competition in the manufacturing industry has increased. Good quality products, along with competitive
prices, have become mandatory for any company’s survival. The production cost in a
manufacturing plant increases due to the inefficiency of machines, frequent rework,
excessive scrap generation, etc. Selling prices cannot be raised to cope up with these
losses for the sake of increasing the profit. The only solution is the reduction of
production cost, which increases profit keeping the selling price constant.
G. Vora · H. Umat · Dinbandhu · C. Rajput · K. Abhishek (B)
Department of Mechanical and Aero-Space Engineering, Institute of Infrastructure Technology
Research and Management (IITRAM), Ahmedabad, India
e-mail: krabhishek1987@gmail.com; kumarabhishek@iitram.ac.in
S. Kumari
Department of Mechanical Engineering, GLA University, Mathura, India
© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2021
A. K. Parwani et al. (eds.), Recent Advances in Mechanical Infrastructure,
Lecture Notes in Intelligent Transportation and Infrastructure,
https://doi.org/10.1007/978-981-33-4176-0_15
183
by Implementing 5S Methodology:
A Case Study
Gnanesh Vora, Hemendrasinh Umat, Soni Kumari, Dinbandhu,
Chetansingh Rajput, and Kumar Abhishek
Abstract India’s small and medium enterprises (SME) has around 45% contribution
to the total manufacturing output of the country. SMEs face the problem of scrap and
rework generation because of improper workplace organization and inappropriate
treatment of raw materials as well as finished goods. Due to rework problems, the
overall quality of the product is also compromised. Such problems hike the overall
manufacturing cost resulting in a thin profit margin by the firms. A little reduction in
expenses at a small-scale can be effective in the overall manufacturing cost in industries. This case study focuses on the reduction of scrap and rework cost, along with
solving the operations and management-related problems in an enterprise. Based on
the 5S methodology, a special-purpose machine (SPM) has been made and implemented in an Indian firm, which reduces approximately 5% scrap and rework cost in
a duration of 3 months.
Keywords Scrap · Rework · Cost reduction · 5S method · SMEs
1 Introduction
With the development of new technologies and methods, the competition in the manufacturing industry has increased. Good quality products, along with competitive
prices, have become mandatory for any company’s survival. The production cost in a
manufacturing plant increases due to the inefficiency of machines, frequent rework,
excessive scrap generation, etc. Selling prices cannot be raised to cope up with these
losses for the sake of increasing the profit. The only solution is the reduction of
production cost, which increases profit keeping the selling price constant.
G. Vora · H. Umat · Dinbandhu · C. Rajput · K. Abhishek (B)
Department of Mechanical and Aero-Space Engineering, Institute of Infrastructure Technology
Research and Management (IITRAM), Ahmedabad, India
e-mail: krabhishek1987@gmail.com; kumarabhishek@iitram.ac.in
S. Kumari
Department of Mechanical Engineering, GLA University, Mathura, India
© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2021
A. K. Parwani et al. (eds.), Recent Advances in Mechanical Infrastructure,
Lecture Notes in Intelligent Transportation and Infrastructure,
https://doi.org/10.1007/978-981-33-4176-0_15
183