Select and apply appropriate analysis techniques to identify problem areas within the supply chain. Critically analyse them and de

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 montho 6,500 TANK 356 o 5,400 TANK 357 o 8,200 TANK 153

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

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

Work Time

20 working days in a month

Operating a 3 shift system in all production operations

PROCESS INFORMATION

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

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

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:

580 TANK 153

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

The observed WIP inventory after each inner process are:

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:

o 1,150 TANK 356 o 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

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