1. From the data available Create a “Current Value Stream Map” recording the following:
At each process
Cycle time
Set Up or changeover time
Observed inventory
Waiting time
Scrap
2. Create
Waterfall chart showing, value added, non-value added (X&Y axes respectfully)
Pie chart displaying value added & non-value added percentages
Bar chart displaying value added & non-value added per process
3. Repeat questions 1. and 2. And create a future state map aimed at eliminating waste
4. State your reasoning behind the strategy of your proposed future value stream development, quoting the amount and types of waste reduction you expect
5. Discuss how you would facilitate change (including the people) to enable you to implement the “Future state value stream”
6. What would be your recommendations to the Acme Manufacturing Company board for the implementation of the future state value stream with approximate cost savings.
Acme Machining company produces several components for vehicle assembly plants. With operating costs of £50 – 00p per hour. This case concerns one product family, a vehicle disc brake in two types: one each for the off side (RH) and one for the near side (LH) for a custom built vehicle. These components are sent to the ChrisCar Custom Vehicle assembly plant (the customer).
The ChrisCar company have suggested that due to market demand, they will be looking to increase the monthly order to 1,600 per month (double current output). Would the Acme Machining Company be in a position to respond.
Production Processes
Acme’s processes for this product involve drilling, turning, grinding and painting forged brake disks. The components are then packed and shipped to the customer on a daily basis at a selling price of £100 – 00p each.
Forgings are supplied by British Forgings Ltd. and deliveries to Acme arrive on Tuesdays and at a cost of £20 – 00p per forging.
Customer Requirements
800 pieces per month
400 per month of Type “LH”
400 per month of Type “RH”
Customer plant operates on three shifts
Palletized returnable tray packaging with 4 forgings in a tray and up to 5 trays on a pallet. The customer orders in multiples of trays.
One daily shipment to the vehicle assembly plant by truck.
Work Time
20 days in a month
three shift continuous operation in all production departments
the working week is from 6am Monday to 10pm Friday
Eight (8) hours every shift, with overtime if necessary
Two 10-minute breaks during each shift as well as a 1 hour Lunch.
Processes stop during breaks and lunch.
Production Control Department
Receive ChrisCar’s 90/60/30-day forecasts and enters them on to MRP.
Issues Acme’s 6-week forecasts to British Forgings Ltd. via MRP
Secures forgings by weekly FAXed order release to ChrisCar Co.
Receive daily firm order, WIP inventory levels, F/G inventory levels, and anticipated scrap and downtime.
Issues weekly schedules to Drilling, Turning, Grinding, Painting and Inspection processes
Issues daily shipping schedule to Shipping Department
Process Information
All processes occur in the following order and each piece goes through all processes.
Drill (Asquith – Radial Arm Drill)
3.2 feet arm length 12” column dia 5hp 40 – 2000 rpm
Manual process with one operator
Cycle Time: 8 minutes
Set Time: 15 minutes
Non-conformance: 8%
Observed Inventory prior to drill 30 days of forgings, 1200
Prior to Drill: 1200 forgings
After drill prior to turn:
40 pieces of Type “LH” finished stampings
24 pieces of Type “RH” finished stampings
Distance to Turn 1 = 6m
(part transition / waiting time 720hrs)
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