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Magna Manufacturing Company (MMC) is a manufacturing company based in the Midlands. Its core skills include precision machining, welding and assembly. MMC is a first tier supplier to the automotive industry, it supplies complete assemblies for the OEMs and components for the Aftermarket sector. The company has been in business for 40 years and currently employ 200 people. Since 2010 the company have lost 2 major orders to overseas competitors. 20 % of their direct workers have been made compulsory redundant and there may be a loss of a further 25% of workers in the next 12 months if they continue as they are.
MMC’s manufacturing facility is currently producing to mass production principles. The machines have a functional layout (figure 1) and produce components in large batches.
The company have recently employed you as their Manufacturing Director to turn around their manufacturing performance; as you have extensive knowledge and experience of Lean Manufacturing principles.
An initial analysis of the company production data has identified a ‘runner’ customer order to supply a car set, consisting of two assemblies AR (RHS assembly) and AL (LHS assembly), on a regular basis. Figure 2 shows the simplified product structure.
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.
Figure 2 Simplified product structure
¢ 20 working days in a month
¢ Operating a three shift system in all production operations
¢ 6.00am – 2.00pm, 2.00pm – 10.00pm, 10:00pm – 6:00am
¢ 30 mins lunch and two 15 min breaks
¢ This is the responsibility of the Logistics department which receives 90/60/30 forecasts from the customer. Logistics are responsible for downloading this information onto the MRP system.
¢ A 4-week forecast is issued by logistics to Lanchester Steels and Coventry Castings via MRP.
¢ Logistics ensure all materials are available and secures by weekly faxed order release to the suppliers.
¢ MMC generates weekly departmental requirements via MRP.
¢ A daily firm order is received from the customer
¢ Weekly requirements are customer order based as well as logistics taking into account WIP and finished goods inventory numbers, anticipated scrap and process downtime.
¢ Logistics issue weekly launch and build schedules to the stores, press shop, welding area, machining area, and assembly area.
¢ Logistics issue a daily shipping plan to the Despatch Department.
Process Data - Covers (COL and COR)
Operation 1 – Press (not dedicated to product family)
¢ Cycle time: 2 seconds
¢ Batch size 10000
¢ Changeover time: 120mins
¢ Availability: 95%
¢ EPE 4 weeks
¢ Quality pass rate 99%
¢ Observed inventory:
· 5 days Sheet metal
· After pressing; 1452 COL
Operation 2 – Manual Weld
¢ 2 operators dedicated to manual process
¢ Batch size 100
¢ Cycle time: 233 seconds
¢ Changeover time: 20 mins
· 404 COL
· 495 COR
Operation 3 – manual assembly
¢ Cycle Time: 177 seconds
¢ Changeover time: 15 minutes
¢ Availability: 98%
¢ Quality pass rate 90%
¢ Load cover to paint fixture 10s each (15 per jig)
¢ Observed inventory (post assembly):
· 506 COL
· 785 COR
Observed inventory waiting goods out to painting
· 500 COL
· 300 COR
Operation 5 – Painting (Sub Contracted)
¢ Turn around time 2 days
¢ Painting 15 seconds per part
¢ Batchsize 600
¢ Availability: 90%
¢ Quality pass rate 95%
¢ Observed inventory (goods in waiting transport)
¢ Observed inventory waiting assembly
Operation 6 – External Component Assembly (COR only)
¢ 1 Operator dedicated to manual operation
¢ Cycle time: 240 seconds
¢ Changeover time: none
¢ Availability: 100
· 351 COL (delivered from paint)
· 492 COR
Production Data - Carriers (CA)
Operation 1 – rough milling
¢ One operator dedicated to manual process
¢ Cycle time: 132 seconds
¢ Quality pass rate 98%
· 10 days castings before rough machine
· After rough machine
· 776 CA
Operation 2 – machine datums
¢ Operator dedicated to manual operation
¢ Cycle time: 153 seconds
¢ Changeover time: 10 mins
Operation 3 – CNC machine
¢ Automated cycle
¢ Unload & load (combined) 15s
¢ Auto machining cycle 263 seconds
¢ Changeover time: 30mins
¢ Quality pass rate 92%
· 592 CA
Operation 4 – CNC Twin Spindle drilling
¢ Unload & load (combined) 15s per carrier
¢ 2 carriers per fixture
¢ Auto machining cycle (for two carriers) 258 seconds
· 1021 CA
Operation 5 - Linish
¢ Cycle time: 90 seconds
¢ Changeover time: 120 mins
¢ Quality pass rate 97%
· 720 CA
Operation 6 – Sub Assembly
¢ 1 operator dedicated to manual operation
¢ Cycle time: 63 seconds
¢ Availability: 100%
· 734 CA
Final Assembly (carrier and cover assembled together)
¢ 2 operators dedicated to manual operation
¢ Cycle time: 196 seconds
International House, 12 Constance Street, London, United Kingdom, E16 2DQ
UK Registered Company # 11483120
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