International Journal of Engineering Trends and Technology (IJETT) – Volume 28 Number 2 - October 2015
Effect of Lean Technology on Connector Industry in India
M.Yogesh#1, Dr.G.Chandramohan#2
#1
#2
Research Scholar, Karpagam University, Coimbatore, Tamilnadu
Vice-Principal, PSG Institute of Technology and Applied Research, Coimbatore, Tamil Nadu
Abstract - Lean Technology is applied to enhance the
efficiency of an industrial concern. Lean includes
minimizing wastage in the operational sector,
improving the quality and diversity in the products.
When Supply is more than Demand, Sales decline and
at such times sales team approaches customers with a
set of questioners and makes a thorough study of
customer tastes and requirements. The Manufacturer
is tuned to the interests of the customer so that waste
in Inventory, Manufactured Goods and Time Lag is
minimized. The study of effect of Lean Technology is
made in the light of a study conducted by FCI OEN
Connectors Ltd.
Keywords:
Lean,
Electronics
Equipments,
Connectors, Efficiency, Quality, Productivity, India.
INTRODUCTION
Lean Technology has a profound effect on
the efficient working of an Industry. We made a Study
on this aspect especially in the case of Connector
Industry in India. We derived the relevant data from
the organization study conducted at FCI OEN
Connectors Ltd. The Study aimed at a first-hand
information of this organizational structure, its
different departments and responsibilities of the
different management levels, the various functional
and manage mental activities taken place and finally
over review of the company.
DETAILS OF THE STUDY CONDUCTED AT
THE FCI OENCONNECTORS LTD:
The organization study conducted at FCI
OEN Connectors was aimed at getting a firsthand
information of its organizational structure, the
different departments, the duties and responsibilities
of the different management levels, the various
functional and managerial activities taking place and
finally an overall review of the company. The
information was collected mainly through the
interaction and communication with the concerned
departmental employees.
Objectives of the Study: To get overall idea
about various departments in the organization, To
know and understand how the management make use
of the management tools, concepts, theory and its
principles in the practical environment of an
organization, To get a clear picture about a corporate
and their industrial profile in India and to learn about
the functions of the industry through practical
experience.
Limitations of the Study: The study was
conducted only for one month. So the data collected
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also limits this factor, The company policies and
regulations affect the collection of data especially in
finance department and There are some technical and
engineering terms that are unknown.
The company intends to be a world class
manufacturer and globally competitive supplier of
inter connected products, tooling services and business
processes and also to be an organization in India that
can actively show FCI’s worldwide competitive
advantage through cost leadership and operational
excellence and to provide a sustainable development
for all the stake holders.
The company aims to achieve and sustain a
reputation for quality in global market through their
commitment to meet and exceed customer expectation
by maintaining a quality management system to
international standards, aim at the satisfaction of our
customers, employees and investors through continual
improvement, endeavor to make positive contribution
to the community around them and through continual
improvement.
In the last few years, electronic component
industry worldwide has been undergoing a massive
and interesting revolution. The telecom and internet
boom in the last 90’s saw sky rocketing demand and
high capacity addition, As the market size was small,
there is only minimum number of connector
manufactures in India so the industry was growing
very fast. The market size grows. But during the early
2000s, the overall economy reported a decline in
consumer spending and it had negative effect on the
industry.
Challenging Operational environments of
industry and the military continued to provide a
demand for specialized connectors. In 1991, Ocean
Design Inc. introduced an oil-filled, pressurized
connector for military and petroleum industry use in
undersea and damp conditions. This connector could
be mated underwater without shutting off power. The
design relied on a thin layer of a specially engineered
thermoplastic to strengthen its protective epoxy layer.
Another specialized connector with military
applications was the Beta Flex circuit board
connector. This connector was developed to meet a
need for very fast data transmission in the highvibration avionics environment. At the core of this
design was a nickel-titanium memory alloy. Pave
Technology Co. introduced a radiation-resistant
"push-through" connector that allowed workers to
replace the connection without entering a sealed
chamber.
Not content with the connector's status as the
weak link in the signal chain, coaxial connector-and-
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International Journal of Engineering Trends and Technology (IJETT) – Volume 28 Number 2 - October 2015
cable assemblies were developed in which the
connectors and the cable were shielded, preventing
signal loss of as much as 30 percent. These connector
assemblies also featured a four-beam contact,
providing more surface area than the standard twobeam contact. In 1992, AMP Inc. introduced another
important innovation within the industry, a hybrid
called the Active Eurocard Connector. It was a highspeed connector that featured a small printed circuit
board on which microchips could be placed, freeing
motherboard space. The design was said to allow more
efficient use of space and dramatically increase bus
speed. Highly controlled impedance was a feature of
all such high-density connectors.
An ongoing problem in the mid-1990s was
the provision of standards for the vast number of new
technologies, although some manufacturers preferred
proprietary standards, forcing customers to purchase
many different components from one source.
Concurrent with the push for proprietary standards, a
trend began with suppliers working closely with
customers to develop customized connectors. The
result was somewhat higher profit margins in
specialized applications, such as military use.
Increased consumer demand for inexpensive products
that used electronic connectors and increased
competition among producers of electronic connectors
continued to diminish the number of manufacturers
within the industry.
The industry grew steadily during first half of
the 1990s, especially for coaxial connectors and
printed circuit connectors. A promising long-term
trend in the late 1990s was the proliferation of
electronics in such varied industries as industrial
connector applications in data communications,
commercial aircraft, medical technology, automobiles,
and telecommunications. Mobile phones also offered a
greatly expanding market potential. However, industry
shipments declined consistently throughout the late
1990s, dropping from $5.55 billion in 1997 to $5.33
billion in 1998 and to $5.13 billion in 1999. It was not
until 2000 that the value of shipments began to climb,
reaching $6.15 billion.
After peaking at $6.15 billion in 2000, the
industry was adversely affected by the economy,
which stifled demand and caused oversupply issues,
thus eroding prices. Shipment values fell 18 percent to
$4.99 billion in 2001 and another 23 percent to $3.6
billion in 2002. By 2003, the economy began to
recover and demand increased in computers and
consumer electronics. Globally, connector sales grew
9.7 percent during 2003 to $25.4 billion, although the
United States only experienced a marginal 0.4 percent
increase in revenues. China's connector industry, on
the other hand, grew 23 percent year-on-year.
Computer and peripheral related connector sales
increased by nearly 10 percent from $6 billion to $6.7
billion, and the medical equipment industry grew
more than 17 percent, from $557 million to $653.5
million.
Current conditions:
Growth continued
during 2004 and prices stabilized. Orders were up,
lead times were extended, and backlogs began to build
once again. Growth was driven by ongoing recovery
of demand in the automotive, consumer electronics,
computer, and mobile technology sectors. Although
the global industry grew during the mid-2000s, U.S.based operations continued to move overseas where
production costs were sometimes cut over 50 percent.
In 2006, the industry's 289 establishments shipped
about $4.45 billion in connectors. The following year
saw the number of establishments drop to 229 and
shipments increase modestly to $4.5 billion with
21,791 employees earning $941 million. As of 2008,
shipments fell further to $4.2 billion. Now it has been
increased by 4.2%.
Product wise share in the connector industry
Computer and peripherals
25.9%
Military and aviation
7.4%
Automotives
12.9%
Industrial equipments
14.1%
Telecom and data communications
18.3%
Analysis of the study made
From the report mentioned above, it is inferred
that company has applied Lean technology in three
aspects
1) Improvement of the Operation
2) Quality Improvement
3) Supply Chain Optimization
Improvement Of Operation And Reduction Of Cost
Price
1) In most of the times, supply of the connectors
is less than demand. The company has
applied lean for improving operation. So as
to reduce the cost of production. This is done
by minimizing waste in row material,
reducing running time, efficient labor
management,
manufacturing
process
efficiency
and
manufacture
support
optimization. It is found that cost of
production of connectors is reduced over a
span of period from 2009-2014.
Fig 1: Degradation of Quality with Time
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International Journal of Engineering Trends and Technology (IJETT) – Volume 28 Number 2 - October 2015
200
160
120
Number of
Complaints
80
0
Jul-11
Sep-11
Nov-11
Jan-12
Mar-12
11
May-12
11Jul-12
12
Sep-12
12
Nov-12
12
Jan-13
Mar-13
May-13
12
Jul-13
13
Sep-13
13
Nov-13
13
Mar-14
May-14
13
13
14
14
40
Mar-11
May-11
2) Lean is applied is improve the quality of
finished goods. When quality is increased,
although cost of production is increased, it
will add to the customer satisfaction quality
can be expressed as
G = P/E, P is Performance or Result, EExpectation.
We include a Quality Improvement Graph.
Group actual
Fig 3: Quality Complaint Evolution
Fig 2: Continuously Improved Quality
3) During the period from 2000 to 2003, when
there was global inflation, demand was
slightly less than supply. At this Context,
company has reengineered the production by
Lean technology. The following steps were
taken:
a. Instead of special labourers, existing
labourers are trained to do every
type of job and thus all the labourers
are equipped to work as a team. So
the waste in labor force is reduced.
b. The waste in raw material is
reduced.
c. The floor space and inventory is
reduced.
d. The sale team is made as an integral
part of the company and so that the
team is instructed to go directly to
the customer with a set pattern of
questioners so as to get information
regarding the requirement of
military or other company or
individual who purchase connectors.
After knowing the requirement of
customer, a diversity in the product
is attempted.
e. The quality of manufactured good is
increased without increase of cost of
production.
The following graph shows that
number of Complaints pertaining to
Quality of product is gradually
reduced.
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As a result of these Lean measures, Waste in
manufacture section, purchase section is minimized.
So the cost of production declined, export increased
by about 2003. As government has increased.
Presently by the application of Lean Technology,
Efficiency of the company is being increased every
year.
CONCLUSION
From the Study of the Company in the light
of these reports, one could realize the effect of Lean
measures in the working of the company. More about
the company is obtained from the various surveys.
Lean technology has improved the efficiency of
Labourers, Minimized the Operational Cost and Time,
Improved the Quality and Diversity of the Product.
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