ADDING VALUE TO LASER CUTTING ASSEMBLY

To improve the productivity and capacity of its laser cutting assembly, SLTL Group undertook a strategic project that put forth several challenges to be addressed with unique solutions.

SLTL Group, a dynamic and innovation-driven conglomerate with expertise in industrial laser, diamond and jewelry processing, medical devices, RF and microwave, and renewable energy, undertook a strategic project to improve the productivity and capacity of its laser cutting assembly. Originally planned for a capacity of 15 machines per month, the assembly shop faced challenges due to increased customer demand, necessitating a systematic approach to enhance efficiency and ensure on-time deliveries.

Trigger for the project

The decision to embark on this project was triggered by the significant growth projected in the global market for laser cutting machines. According to Future Market Insights (FMI), the market was anticipated to grow at a CAGR of 5.8 percent, reaching a valuation of US $5,974.1 million by 2032. SLTL experienced a surge in demand, reaching up to one machine per day, showcasing the need to optimize the assembly shop's capacity to meet market demands promptly.

Challenges and solution generation

The project identified challenges across the 4Ms – Man, Method, Material, and Machine/Equipment/Tools. Skilled manpower attrition, assembly sequencing issues, material shortages, and inefficient material handling were key obstacles.

The solution involved a multi-faceted approach:

Man (Skill Development): A comprehensive skill development program was initiated, focusing on training new associates for different assembly stages. A skill matrix was implemented to increase flexibility, and a visual API (Assembly Process Instruction) was introduced to enhance transparency and train new manpower effectively.

Method (Assembly Sequencing): Detailed assembly process studies were conducted, leading to the identification of optimized assembly sequences. Sub-assemblies were created, and off-station assembly was implemented to reduce occupancy time and material movement, resulting in improved efficiency.

Material (Leveling): Strategies for leveling production were employed, including the realization of multiple planning concepts and capacity reserves. This approach aimed to manage fluctuations in customer demand, ensuring a smoother production flow.

Machine/Equipment/Tools/Material Handling Trolley: The project introduced specific trolleys for material handling, redesigned assembly processes, and implemented power tools to enhance efficiency and reduce assembly time.

Results and impact

The impact of the project was measured through various key performance indicators (KPIs):

Station Throughput Time: Improved by 56 percent, signifying a significant improvement in the efficiency of the assembly process.

On-time Delivery: Increased from 60 percent to an impressive 85 percent, demonstrating the project’s success in meeting customer delivery requirements promptly.

Rework Hours: Decreased by 53 percent per machine, indicating enhanced quality and reduced rework.

Manpower Overtime: Reduced from 83 to 43 hours per machine, highlighting improved efficiency and reduced strain on manpower.

Business sustainability and future focus

To ensure the sustainability of the implemented solutions, the project initiatives have been incorporated into SLTL’s Quality Management System (QMS) and Enterprise Resource Planning (ERP) system. Milestones in the ERP system track the progress of each operation, contributing to data accuracy and transparency. The company is committed to continuous monitoring and improvement, ensuring that the benefits of the project are sustained over the long term.

Resource impact and sustainability

The project had a positive impact on resource usage and sustainability:

Waste Reduction: Significant reductions were observed in plastic, paper cardboard, and wooden scrap waste, demonstrating a commitment to environmentally friendly practices.

ERP Integration: The incorporation of project initiatives into the ERP system ensures ongoing visibility and management of key milestones, contributing to the sustainability of the improvements.

Business metrics

Key business metrics exhibited substantial improvements:

Sales Volumes: Monthly dispatch increased by 60 percent for laser cutting machines, showcasing the positive impact of the project on production and market demand.

Customer Satisfaction Score: Improved across categories such as machine performance, quality, and consistency. Customer reviews reflected a significant increase in satisfaction levels.

Scope for horizontal deployment

The success of the project has paved the way for horizontal deployment across other value streams within SLTL Group. The concepts of block assembly, sub-assembly, and leveling will be applied to laser marking and laser welding value streams. Furthermore, these successful concepts will be deployed in part production at the fabrication and CNC units, extending the positive impact and efficiency gains across various facets of the company.

Conclusion

SLTL Group’s laser cutting assembly improvement project stands as a testament to the company’s commitment to innovation, efficiency, and customer satisfaction. By systematically addressing challenges and implementing innovative solutions, SLTL not only improved its assembly processes but also set the stage for broader organizational enhancements. The project’s success underscores the importance of continuous improvement and adaptability in the face of evolving market demands. As SLTL looks towards the future, the lessons learned from this project will undoubtedly shape its approach to operational excellence and sustainable business practices.

Creating a level playing field

Aiming to protect domestic industries from cheap Chinese imports, the Ministry of Finance has approved Import Dumping duties on industrial laser machines following an investigation by the Ministry of Heavy Industries and the Directorate General of Trade Remedies. This move aligns with the Make-in-India initiative, fostering self-reliance and fair competition for advances in R&D, academia, and laser applications. SLTL Group, a supporter of Make-in-India, welcomes the decision, expecting a 30 percent price increase in Chinese machines. The initiative aims to create a level playing field, encouraging Indian manufacturers to prioritize quality and market needs. The Government’s comprehensive strategy supports economic growth, innovation, and global competitiveness.

MAULIK PATEL Executive Director SLTL Group

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