Select and apply appropriate analysis techniques to identify problem areas within the supply chain. Critically analyse them and design an action plan to achieve improvements through Lean principles.

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M20AAE_Lean Supply and Quality Management

Semester 1, 2016/17

Assignment 2_ Current State Mapping

(35% Module Mark)

Online Submission date: Moodle; 11:50pm Thursday 01st December 2016

Learning Objectives:

This assignment covers the learning objectives 2 and 3:

2.Select and apply appropriate analysis techniques to identify problem areas within the supply chain. Critically analyse them and design an action plan to achieve improvements through Lean principles.

3.Evaluate just-in-time (JIT) systems, their application within the supply chain and implications to supplier business functions such as logistics, manufacturing, service and inventory management.

Assignment

This is an individual assignment to be submitted online on moodle by 01st December 2016 before 23:50pm. The mandatory submission components are:

A detailed report including all the required tasks 1, 2, 3 & 4.

A Value Stream Map for the case study.

The report should be presented as a formal technical report to include a summary, introduction, main body of your report, a discussion and conclusions. A minimum of 1500 words is expected excluding Table of content, references and appendices.

As a postgraduate-level student, you are required to support your discussion and arguments with relevant academic references using Coventry University Harvard Reference System.

Case Study Information

MICT Components is a manufacturing company based in the Midlands. MICT Components is afirst tier supplier to the automotive industry and also produces several components for the aftermarket sector. The company started to fully manufacture in 1975, and currently employ 350 people.

Over the last two years MICT Components have lost two of their major orders to overseas competitors. In an attempt to improve the manufacturing performance to be able to continue in a competitive environment, the company has employed you, as an expert in Lean principles, to turn around their manufacturing performance.

Analyse the following data and prepare a report to be presented to the Board of Directors, assessing the current state of the manufacturing system and demonstrating a vision for the future.

Production Processes

An initial analysis of the production data identified that the Fuel Tank area is one of the more profitable areas of the company, in particular the product family that contains the three similar tanks, TANK 356, TANK 357 and TANK 153, which are high value, high volume, and runner products.

TANK 356, TANK 357 includes an extra inner component that it is also manufacture by MICT Components but in a different cell of the manufacturing company. Therefore, two separate production lines are designed, one for Tanks and other for inner component. At the end of the tank common processes, the inner component is manually inserted into the TANK 356 and TANK 357, before passing to the Assembly. Finally, all tanks TANK 356, TANK 357 and TANK 15 are test, label, packed and sent out to the customer.

TANK 153 is sold to the aftermarket sector and consists of just tank without the internal component. Therefore it does not require passing through the assembly process, and passes direct to the test, labelling and packing processes.

MICT Components is currently producing to mass production principles. The machines have a functional layout (Figure 1) and produce parts in large batches. The key manufacturing processes for the tanks include mould and finish, arm fit, pump fit, The sequence for the inner component is from laser cutting, manual turn and Brackets welding.

Because of the short cycle time and high set up time the batch size is high, 2000 (almost every product every month).The products are packed onto stillages each one with 20 tanks. The customer orders in multiples of stillage quantities.

All moves within the same section are done manually, using trolleys.

All moves between sections are done by fork lift truck (a very scarce shared resource!)

Parts between the two cells (tanks and inner component cell ) are transport using fork lift trolleys that carries stillages (50 parts per stillage).

Fork lift truck is a very scarce shared resource with other cells. Distance between the two cells it is approximately 500m.

Multipoly Ltd supplies the tank raw material to MICT Components on Tuesdays.

UK steels supplies tubes for the inner component to MICT Components every Thursday.

Customer Requirements

20,100 tubes per month6,500 TANK 356 5,400 TANK 357 8,200 TANK 153

Products are delivered every day to the customer by lorry. TANK 356 customer is MPB cars

TANK 357 customer is VUX cars TANK 153 customer is Mipix ltda

Work Time

20 working days in a month

Operating a 3 shift system in all production operations

6am-2pm, 2pm-10pm, 10pm-6am

20 mins lunch and two 15 min breaks per shift

MICT Components Control Department

The Logistics department is responsible for receiving customer’s 30 day forecasts and enters them to the MRP system.

A daily firm order is received from the customer.

A monthly forecast is issued by logistics to Multipoly Ltd via MRP.

A three week forecast is issued by logistics UK steels via MRP.

Logistics ensure raw materials are available and secured by weekly faxed orders released to both suppliers.

In addition, the department:

Generates MRP-based weekly departmental requirements based upon customer order, WIP Inventory levels, F/G inventory levels, and anticipated scrap and downtime

Issues weekly build schedules to all the processes.

oF ftilrk

RAW MATERIAL

Mould and Finish

 

 

 

 

 

 

 

Assembly

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pump fit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Walking area and forklift movement area

 

 

Arm fit

Lathe

 

 

lliM

 

 

 

Walking area and forklift movement area

 

Tank close

Pump Test

Label & Packing

 

 

Walking area and forklift movement area

CNC Mchine

Brackets welding

Laser cut

Finish Goods

Warehouse

Figure 1. Current facility layout plan

PROCESS INFORMATION

The processes to produce a carrier tank in the following order:

Processes

Cycle Time

Change Over

Availability

Quality Pass rate

 

(secs)

time (mins)

 

 

Moulding and finish

165

240

97%

95%

Arm fit

45

10

90%

95%

Pump fit

160

4

84%

90%

Pump test

85

2

93%

90%

Assembly

900 (15 mins)

15

90%

85%

Tank close

65

None

100%

87%

Tank test

120

10

100%

98%

Label and Packing

80

None

100%

98%

The processes to produce an Inner component occur in the following order:

Processes

Cycle Time

Change Over

Availability

Quality Pass rate

 

(secs)

time (mins)

 

 

Laser cutting

45

None

95%

98%

Brackets Welding

170

120

95%

87%

CNC

80

10

100%

100%

WIP (Inventory)

The raw material before the first processes in both flow lines it is estimated to stay 4 days each before passing to their respective processes.

The observed WIP inventory after each tank process are:

Processes

WIP

Moulding and finish

520TANK 356

 

430 TANK 357

 

680 TANK 153

Arm fit

600 TB115

 

750 TB116

 

800 TB201

Pump fit

1,100 TANK 356

 

800 TANK 357

 

1,250 TANK 153

Pump test

370 TANK 356

 

450 TANK 357

 

620TANK 153

Assembly

550 TANK 356

 

800 TANK 357

 

720 TANK 153

Tank close

1,200 TANK 356

 

950 TANK 357

 

1,100 TANK 153

Tank test

450 TANK 356

 

620 TANK 357

 

580 TANK 153

Packing 1,120 TANK 356 960 TANK 357 1,310 TANK 153

The observed WIP inventory after each inner process are:

Processes

WIP

Laser cutting

1,250 TANK 356

 

1,100 TANK 357

Brackets Welding

750 TANK 356

 

820 TANK 357

CNC

970 TANK 356

 

1,200 TANK 357

Due to the transportation required after the CNC process there is an extra WIP inventory before the Assembly of the tank and inner component as follows:

1,150 TANK 356 1,250 TANK 357

Despatch Department

The observed inventory of finish goods observed ready to be sent to customers is: 4,300 TANK 356

3,800 TANK 357

2,350 TANK 153

The products are pack onto carries stillages (10 tanks per stillage) and the, transported to the Finish product warehouse using fork lift trolleys.

ASSIGMENT TASKS

Asses the current state and critically evaluate the MICT Components case by:

1. Create a Value Stream Map for the current state and calculate Lead time and Non Value

Added ratio.

[45 marks]

2. Use 7 wastes analysis and other Lean tools and techniques to discuss the issues.

[25 marks]

3. Discuss any issues regarding information flow, communication with suppliers and logistics

issues with clients.

[15 marks]

4. Presentation and Effort

[15 marks]

Price: £79

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