Highlights
Lean Manufacturing Case Study
The case study is to be done in groups of 3 or less. Absolutely no collaboration between groups.
Deliverables and Deadlines:
1. Progress report: Submission Deadline:
A 3-page summary of the progress you made. Submit on Moodle only! This will count as one of your assignments.
2. Final submission (90%): Submission Deadline:
a. The final report showing your detailed solution and answers to parts (a)-(c) below.
b. VSM files, excel files, etc. Submit your files on Moodle.
3. One A3 report (for part (a) below)
Project Case – STRAT
STRAT is supplying flaps to a major aeroplane manufacturer Airpro. STRAT has high levels of WIP inventories and have to expedite orders or work overtime to meet the monthly demand target. The company is facing high costs, late deliveries and has long lead times. To stay competitive, they must reduce unnecessary overtime, reduce lead time and costs and deliver to their customer on time.
Production control department: The department performs the following actions:
• Receives (by Fax) 2-month forecast from Airpro and enters it into SAP.
• Receives (by Fax) weekly order from Airpro,
• Sends (by Fax) the 2-month forecast to the raw material suppliers, Complaint,
• Sends (by Fax) weekly orders to Complaint, and replenishes raw material by a weekly order,
• Generates MRP- based weekly requirements and issues daily updates,
• Sends printed operations schedules to all the departments.
Question:
a) Use all the tools/techniques you have learned in this course and be as detailed as possible to propose a lean flow. Elements of your design should include:
• Finished goods strategy, continuous flow cell(s)/Pacemaker, staffing and machine requirements, operator work distribution, load and mix levelling, weekly schedules (how will the production employees know what to work on next?), required supermarket, FIFO size (if any), etc.),
• For batch processes (if any), production lot size and trigger points,
• List of improvements to be made to achieve the proposed future state.
b) Identify the following improvements (if any) you’ve made by implementing lean:
Before After Lead time Value added time Inventories Inventory Turns 3 Operators Productivity Uptime Yield Other(s):
c) If the demand is increased by 1 chipset per month and is expected to stay at this level in the foreseeable future, explain what kind of impact this will have on your production system and how you will cope with this increase. Be brief but specific in your recommendations.
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