This Paper has won Consolation Prize in "Opsyrus 2005", the CoolAvenues.com - OIG (IIM Lucknow) Paper Writing Competition held in October 2005.

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Abstract

This paper aims to review the extent to which the Indian manufacturing sector has adopted renowned techniques and practices leading to increase in manufacturing efficiency - commonly known as 'lean production techniques'. It first looks at the importance of increased manufacturing efficiency and lean techniques to Indian manufacturing. Then, in order to set a common base for evaluation of lean adoption by firms across sectors, it adopts basic definitions of 'lean' and 'pull', and also devises a framework of steps
for adoption of lean production techniques. It then looks at numerous Indian examples, including auto component manufacturing and other sectors, examines their practices, and the gains realized from adoption of these techniques. Next, it attempts to chart out the road ahead for Indian manufacturing in terms of new challenges as well as subsequent steps. Finally, some of the limitations of the paper are listed.

Introduction

This paper deals with the Indian experience with modern manufacturing practice, and in particular, the techniques and practices together known by the name of 'lean production'. With the advent of globalization and increasing international sourcing of components and sub-assemblies by global corporations from low-cost suppliers in developing countries like China and India, Indian manufacturers have had to experience profound change in the way they operate. In order to step up its competitiveness, the manufacturing sector has had to improve their operations to become more efficient in servicing its customers. In such a scenario, a systematic approach to increasing efficiency of operations would help boost manufacturing performance greatly.

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* Contributed by -
Vaishnav Tadatmya Ashok,
IIM, Lucknow.