Implementation of a performance management system for environmental sustainability in an industrial organization

Abstract The paper explores the implementation of process performance management systems in the automotive industry, specifically focusing on improving the assembly line of an organization within this sector thanks to the introduction of cobots in the line of manufacturing electronic modules used in car seat control systems. With an emphasis on environmental sustainability and circular economy (CE) concepts, the study investigates the positive effects of optimizing mechanical and electromechanical systems within the assembly line. Leveraging concepts such as KAIZEN and Gemba Kaizen, along with the guiding principles of Just-In-Time (JIT), Continuous Improvement and Automation with a Human Touch (JIDOKA), the research aims to elucidate the potential benefits of such enhancements. Key performance indicators (KPIs) including Overall Equipment Effectiveness (OEE), First Pass Yield (FPY), and scrap rates were considered. Rejects, primarily stemming from human error in part handling, emerged as the major challenge facing this assembly line. To address this issue, collaborative robots were introduced to automate part handling, replacing manual processes with precise and reliable automation. Before the implementation, the cycle time stood at 13.6 units, which was reduced to 12.5 units post-implementation, resulting in a significant increase in productivity equating to 3000 more parts produced per week. OEE increasing from 80% to 87.74%, FPY rising from 96.42% to 98.48%, and the scrap rate decreasing from 0.06% to 0.02%. By addressing inefficiencies at the assembly line level, organizations can achieve significant improvements in performance metrics while concurrently contributing to a greener and more sustainable future.