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Case Study Case description: ABC company specializes in the manufacturing of residential air compressors. The company is looking to implement lean...
Case StudyCase description:
ABC company specializes in the manufacturing of residential air compressors. The company is looking to implement lean principles. In doing so, they are in the process of creating a current state map. The selected product family for this contains two models of X and Y. The final products are shipped directly to the customer once a week while raw material, are received from the supplier one time every two weeks.
Customer's demandDemand fluctuates with average of 8000 units per month (4500 units of type X and 3500 units of type Y)
The pallet can hold up to 5 items.
The customer receives one weekly shipment from the company.
Work time20 days per month; one 8-hr shift per day; Overtime is allowed; two 30-min paid break periods.
Production control departmentThe department is required to perform the following actions:
Receives a monthly forecast from the customer and enters it into the SAP system. Receives weekly order from the customer, Sends the 8-week forecast to the raw material supplier, Replenishes the raw material by a monthly order, Generates the MRP- based weekly requirements, Sends weekly operations schedules to all the departments.
a) Draw the current state map of the case described above (Use Microsoft Visio to draw the value stream map. Microsoft Visio is available on all of the ENCS-labs).
b) Propose a future state & Draw the future state map.
c) Compare Value Added time, Total Lead Time, Number of operators, and inventory for raw material and finished goods, between the current and future states
Note that
All of the equipment are dedicated to this product family.
