COVENTRY UNIVERSITY

Assignment 3
M14 EKM Lean Operations

Muhammad Ahmed Masood Noori, SID 5431807
5/5/2014





2

Table of Contents
Summary .................................................................................................................................... 2
1. Introduction ........................................................................................................................ 5
2. Case Study .......................................................................................................................... 8
2.1 Data Analysis ................................................................................................................. 11
2.2 Future State Map ............................................................................................................ 14
2.3 Production Control System ........................................................................................ 16
2.4 Discussion ...................................................................................................................... 30
Conclusion ............................................................................................................................... 36
References ................................................................................................................................ 37

List of Tables
Table 1 Pareto Analysis ........................................................................................................... 12
Table 2 Comparison between Current and Future State Map .................................................. 31
Table 3 Implementation Plan ................................................................................................... 33


3

List of Figures
Figure 1 Product Structure ................................................................................................. 9
Figure 2 Current State Map .............................................................................................. 10
Figure 3 WIP in Days ........................................................................................................... 11
Figure 4 Percentage Utilization of Operators in Current State ......................... 13
Figure 5 Current Layout of Shop Floor ........................................................................ 14
Figure 6 Future State Map ................................................................................................. 15
Figure 7 Load Levelling Box ............................................................................................. 17
Figure 8 Yamazumi Board of Assembly Cell .............................................................. 18
Figure 9 Walk Diagram Assembly Cell ......................................................................... 19
Figure 10 Standard Operating sheet of Assembly Cell.......................................... 20
Figure 11 Yamazumi Board of Grind Cell ................................................................... 22
Figure 12 Walk Diagram of Grind Cell ......................................................................... 23
Figure 13 Standard Operating Sheet of Grind Cell.................................................. 23
Figure 14 Yamazumi Board of Machining Cell ......................................................... 24
Figure 15 Walk Diagram of Machining Cell ............................................................... 25
Figure 16 Standard Operating Sheet of Machining Cell ........................................ 26
Figure 17 Yamazumi board of Electronic Assembly Cell ..................................... 27
Figure 18 Walk Diagram of Electronic Assembly Cell ........................................... 28
Figure 19 Standard Operating Sheet of the Electronic Assembly Cell ........... 28
Figure 20 Kaizen Bursts on FSM..................................................................................... 31

4

Summary
The study starts with the Literature Review on the reasons of the application of lean tools in
industries, which will highlight the use of Lean in different scenarios and its importance and
swill exhibit the flexibility of lean techniques in different applications of industry. A case
study will also be discussed and many lean tools will applied to improve the current state of
the industry (WMCC) to a much more sophisticated and controlled future state. The impact
of Kanban System, visual controls and 5S will be evaluated on the basis of the results
obtained by applying these techniques. The implementation plan of the Future State Map will
also be discussed which showed the places where improvements were required and needs
observation.

5

1. Introduction
Lean manufacturing techniques are used to change the practice of management in production.
Lean manufacturing is a performance-based process used in manufacturing organizations to
increase the competitive advantages. Actually, lean manufacturing focuses on continuous
improvement of processes by the elimination of waste or non-value added steps within the
organization. The challenge to organizations utilizing lean manufacturing is to develop and
sustain a waste free culture which requires long term commitment from the top management
through the entire workforce. Lean manufacturing techniques are based on the application of
five principles to guide managements actions toward success:
i) Value: The foundation for the value stream that defines what customer is willing to
pay for.
ii) The value stream: The mapping and identifying of all the specific actions required to
eliminate the non-value activates from design concept to customer usage.
iii) Flow: The elimination of all process is stoppages to make the value stream flow
without any interruptions.
iv) Pull: It has ability to streamline products and processes from the concept by customer
usage.
v) Perfection: Lean has ability to advocate doing things right the first time through the
application of continuous improvement efforts.
Four reasons to push the lean in the organization:
Basically, lean manufacturing organization gives attention on four thrusts to support their
lean techniques/manufacturing design;
i) Strong leadership:
Communicate the ideas
Facilitate and models the behaviour of lean manufacturing
Set the standard for the organization
Assist the workforce to absorb the change in management and system.
Develop the trust and inspires the work force
Continuously challenges the system.



6


ii) Team work culture:
Use project-oriented team based structure which focuses on the empowerment
ideas.
Influence knowledge through using highly skilled workers in the cells
Support the operators accountability and responsibility in the production
Support the continued development of workers.
Support the employee ownership of the final product is shared throughout the
process.
iii) Communication system:
Support the processes to find out the critical design issues in the process as soon
as possible
Encourage on the place decision making processes that use the several resources
to solve the critical design issues.
Promote the hourly based information flow in the cell through the visual control
system in the production.
Develop the behaviours of internal operations and focus on the suppliers
behaviour and customers.
iv) Simultaneous development and continuous improvement processes:
Design the product right time and right place
Use the continuous improvement processes to eliminate the non-value-added
problems
Drive commitment to reduce or eliminate the problems
Prefer the just in time material control system
Continues and constant improvement in the supply chain
Develop and train the highly skilled workers
Use visual control or scoreboard measurement system to control the progress.

Lean techniques vary years by years so this frame-work will explain the clear picture of lean
implantation in the organization:
7


Why Use Lean
To significantly improve overall productivity
Increase the market share.
Improve the new product development into the market.
Reduce the manufacturing and engineering labour costs
Eliminate the non-value-added operations and processes.

Because lean methodology focus on the:
Equipment reliability
Balance the production as requirement
Just in time material control techniques
Continuous improvement processes
Process control techniques for quality
Design the HRM system to support the technical processes
Develop continuous flow whenever possible
This presumes that the existing waste is eliminated as much as possible. The challenge is to
withdraw from thinking in batches and start to create a value-creating flow. This means that
an item is passed and dealt with without any storage. It is necessary to ignore all existing
organisational and functional pattern, to find the best possible and waste-free solution
(Womack, Jones 1998).
Nor single steps are repeated many times, but a single-piece flow is practiced. Apart from
that this is the most efficient way to produce, there is not the risk to produce an entire batch
of scrap at an early stage, because failures are noticed immediately before the next part is
produced (Page 2004). On the other hand it is sometimes necessary to interrupt the single-
8

piece flow because in case one takt time is disproportionate high, it will affect all the other
ones as well (Rother 1998).
The next section of our study includes a case study of a company having high inventory and
production lead time problems. The case study will be examined with the application of lean
tools and the results will be obtained as a suggestion for the company.

2. Case Study
West Midlands Car Components (WMCC) is a manufacturing company based in the
Midlands. It machines component parts and assembles them for high volume automotive
customers. Its current manufacturing processes include conventional machining, CNC
machining centres, heat treatment and electronic assembly and final assembly.
WMCC is a first tier supplier to the automotive industry. They supply 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 2012 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. WMCCs manufacturing facility is currently producing to mass
production principles. The machines have a functional layout and produce components in
large batches.
An initial analysis of the company production data has identified a product family containing
two parts, AL123 (left hand side) and ARE124 (right hand side), which are high value, high
volume, runner products. A car set consists of one LHS, AL123 and one RHS, ARE124.
ARE124 has an additional electronic subassembly. The product structure is given in Figure 1.

9

A car set


AL123 (1 off) ARE124 (1 off)

AR124 (1 off) E124 (1 off)
Figure 1 Product Structure
10

Customer
Lanchester Steel
Electronic
Supplier
MRP System
WMCC
Saw Lathe Etching CNC 2 Grind
Assembly
1
Assembly
2
Final
Assembly
Assembly
1E
Assembly
2E
Assembly
3E
5 Days
630 AL
370 ARE
5 Day
500 AL
700 AR
850 AL
475 AR
550 AR
900 AL
650 AR
570 AL
525 AR
150 AL
324 ARE
4 Week Forecast
Weekly Fax
4 Week Forecast
Weekly Fax
90/60/30 Day Forecast
Daily Order
M
o
n
d
a
y
s
W
e
d
n
e
s
d
a
y
s
6100 2430 980 560 AL
220 ARE
Finished
Good
Inventory
4100 AL
3750 ARE
315 E 635 E
Despatch
Department
750 E
D
a
i
l
y
C/T=15s
C/O=10min
Av =95%
EPE 2weeks
QPR=99%
C/T=38s
C/0=nil
Av =100%
QPR=99%
C/T=42s
C/0=nil
Av =100%
QPR=99%
C/T=168s
m L&UL 15s
C/0=35min
Av =88%
QPR=90%
C/T=185s
C/0=45min
Av =87%
QPR=95%
C/T=120s
C/0=nil
Av =100%
QPR=98%
C/T=182s
C/0=nil
Av =100%
QPR=98%
780 AL
690 AR
1660
C/T=55s
C/0=nil
Av =100%
QPR=98%
C/T=170s
C/0=nil
Av =100%
QPR=98%
C/T=110s
C/0=nil
Av =100%
QPR=98%
C/T=235s
C/0=nil
Av =100%
QPR=98%
38 s
4.8
Days
42 s
1.94
Days
168 s
2.91
Days
21600 s
2.2+3.1
Days
2.18
Days
235 s
5 Days
110 s
1.25 Days
170 s
2.52 Days 2.98 Days
182 s 120 s
1.98
Days
55 s
1.55
Days
0.9+15.6
Days
Value
added
time
22658 s
6.3 hr
Lead
Time
62.56
Days
Weekly Weekly Weekly Weekly
Weekly
Weekly
Weekly
Weekly Weekly
Daily
C/T=77S
C/O=30min
Av =85%
QPR=98%
Debur
77 s
12.1
Days
C/T=176s
m L&UL 10s
C/0=35min
Av =88%
QPR=95%
CNC 1
176 s
3.3
Days
15 s
5 Days
Heat
Treatment
HT 4hr/b
AC 2hr/b
L&UL 10s/p
Av =80%
QPR=95%
185 s
2.4+2.6
Days
Weekly Weekly
5040 Car Sets
per month
20 assemblies
per carrier
Takt Time = 1.67 min or 100 sec

Figure 2 Current State Map
11

2.1 Data Analysis
The previous assignment on WMCC demonstrated the current state of the companys shop
floor by developing a current state map. The current state map, as shown in figure 2,
highlights the existence of wastes and gives the idea for future improvements. The current
state map drew attentions to many areas of improvements, not only by improving the work-
in-progress (WIP) but also other areas such as reduction in changeover time, increase in
availability of the machines, reduction of labours resulting in increase in utilisation, layout of
shop floor and the most importantly the production control system.
The impact that these inventories were creating on the system is shown in figure 3. The figure
clearly shows the existence of WIP in terms of days between each working station.

Figure 3 WIP in Days
The Pareto analysis, shown in table 1, gives us an idea to eliminate the waste from which
workstations. The data was obtained from the current state map and the same data was used
to develop figure 3. The highlighted rows show WIP at which workstations combine to make
80% of the total WIP.
0
2
4
6
8
10
12
14
16
D
a
y
s

Operations
WIP in Days
12

S.No Area
WIP
(Days)
Cumulative
WIP
Cumulative
Range %
Cumulative
WIP %
1 Dispatch Department 15.57 15.57 7.692308 24.12457
2 Saw 12.1 27.67 15.38462 42.87264
3 Heat Treatment 7.5 35.17 23.07692 54.49334
4 Raw Material Store 5 40.17 30.76923 62.24047
5 Lathe 4.8 44.97 38.46154 69.67772
6 Grind 4.78 49.75 46.15385 77.08398
7 Etching 3.3 53.05 53.84615 82.19709
8 CNC 1 2.91 55.96 61.53846 86.70592
9 CNC 2 2.17 58.13 69.23077 90.06817
10 Assembly 1 1.98 60.11 76.92308 93.13604
11 Debur 1.94 62.05 84.61538 96.14193
12 Assembly 2 1.55 63.6 92.30769 98.54354
13 Final Assembly 0.94 64.54 100 100

Total 64.54
Table 1 Pareto Analysis
The following figure will exhibit the utilisation of workers in the current state map. Figure 4
clearly shows that the utilisation of workers is not balanced, some operators are contributing
as low as 38% of the takt time and on the other hand some are contributing above 100% takt
time. This imbalance creates WIP and results in poor quality.
13


Figure 4 Percentage Utilization of Operators in Current State
Figure 5 demonstrates the zigzag motion of the material on the shop floor, which is a kind of
waste. The figure is also known as Spaghetti diagram.
0
100
200
Percentage Utilization
Percentage
Utilization
14


Figure 5 Current Layout of Shop Floor
2.2 Future State Map
On the basis of these facts a future state map is developed as shown in figure 4. The map has
a new production control system, WIP is reduced by forming cell and developing a single
piece flow, number of operators are reduced by using techniques such as line balancing and
work standardisation, and most importantly the number of left hand assemblies are made
equal to that of right hand assemblies by introducing a Heijunka box to place production
orders on the shop floor.
15


Production Control
WMCC
Customer
Electronic
Supplier
90/60/30 Day Forecast
Daily
4 Week Forecast
Daily
Lanchester
Steel
Daily
4 Week Forecast
Shipping
Assembly
Cell
Assembly
1
Grind
Heat
Treatment
Machining
Cell
Saw
Electronic
Assembly Cell
Daily
OXOX
FIFO
As produced
F
IF
O
Sawed
Bars
Electronic
Part
15 s
2 Days
501 s
1 Day
Mechanical
21600 s
1 Day
182 s
1+2
Days
182 s
1 Day
175 s
1 Day 0 Day
515 s
2 Days
Electronic
ARE 124
AL 123
F
IF
O
A
R

1
2
4
AL 123
ARE 124
Electronic
D
a
i
l
y
D
a
i
l
y
Mechanical
Raw
Material
D
a
i
l
y
1 Day
Value added
time = 22655 s
Lead time = 9
Days
C/T 15 s
C/O < 10m
EPE day
Av 95%
QPR 99%
5040 Car Sets
per month
20 assemblies
per carrier
Takt Time = 1.67 min
or 100 sec/assembly
C/T 15 s, C/O < 10m
TT 100 sec
2 Operators
QPR 98%
HT 4h/b
AC 2h/b
L&UL 10s/p
Av 80%
QPR 95%
TA T 1 Day
C/T < 183s
C/O < 10m
Av 98%
QPR 95%
TT 100s
2 Operators
C/T 182 s, C/O nil
Av 100%, QPR 98%
TT 200s
C/T 175s
C/O nil
Av 100%
QPR 98%
TT 100s
2 Operators
C/T 515s, C/O nil, Av 100%
QPR 98%, TT 200s
3 Operators
FIFO
E 124

Figure 6 Future State Map
504 Assemblies per
Day
20 assemblies per
Kanban Card
VA ratio = 1 : 20
16

Note:
C/T Cycle Time
C/O Changeover Time
EPE Every Product Every
Av Availability
QPR Quality Pass Rate
TT Takt Time
L&UL Loading and Unloading
HT Heat Treatment
AC Air Cooling
TA T Turnaround Time
Mechanical relates to mechanical processes and its inventories
Electronic relates to electronic processes and its inventories.
2.3 Production Control System
Kanban production control system has been designed for the West Midlands Car Components
(WMCC), which will help them to meet daily requirement in an efficient manner and with
controlled inventory. Figure 6 shows the manner in which the production process will be
controlled. Kanban cards have been used as a visual control system to schedule the
production.
Explanation
The monthly demand of the car sets or assemblies has been fixed by the customer to be 5040
car sets per month. This demand has been broken down to daily targets as 252 car sets daily
or 504 assemblies daily (including both AL 123 and ARE 124). The production control
receives a daily confirmation order which is passed to the shop floor through the load
levelling box (Heijunka Box) as shown in figure 7. Figure seven shows that the pitch is
33min and 20 sec. The reason behind this is that it is calculated that for each Kanban card 20
assemblies will be produced. This is related to size of the carrier specified by the customer.
The load levelling box will ensure that equal number of left hand and right hand assemblies is
17

produced throughout the days production, which has been the utmost priority of the
customer.

Figure 7 Load Levelling Box
Following are loops that are formed in the future state map, which will help manage them
easily.
Pacemaker Loop
This loop will create the pace of the whole production
system, and will directly send the material to the shipping
department on receiving the kanban cards from load
levelling box. The assembly cell is included in this loop.
The assembly will receive material from the supermarket
upstream by using withdrawal kanbans.
The assembly cell has two workers operating as a team and
will cover operation 10 and 11 according to the current
0
6
:
0
0
0
6
:
3
3
0
7
:
0
6
0
7
:
4
0
0
8
:
1
3
0
8
:
4
6
0
9
:
0
1
0
9
:
3
4
1
0
:
0
6
1
0
:
3
8
1
1
:
0
8
1
1
:
4
8
1
2
:
2
1
1
2
:
3
6
1
3
:
0
9
...
2
2
:
0
0
TIME
A
L

1
2
3
A
R
E

1
2
4
18

state map. The utilization of workers and their work is shown in figure 8 and 9 by Yamazumi
and Walk diagrams.

Figure 8 Yamazumi Board of Assembly Cell
0
OP 1 OP 2
0
OP 1 OP 2
100
32
TAKT
TIME 100s
95% TAKT
TIME
92
90
A
S
S
E
M
B
L
Y

2
A
S
S
E
M
B
L
Y

2
2
91
89
F
I
N
A
L

A
S
S
E
M
B
L
Y
120
55
F
I
N
A
L

A
S
S
E
M
B
L
Y
TAKT
TIME 100s
A
S
S
E
M
B
L
Y

2UTIL. =
55%
UTIL. =
120%
100
19


Figure 9 Walk Diagram Assembly Cell
All the operators in the future state map have been assumed to be working at 95% efficiency.
The walks have been assumed to be of 2 seconds and denoted by curved line. The layout of
the cell is shown in standard operating sheet (figure 10).
0
OP1 OP1
OP3 OP3
2
32
90
92
OP 1
0P2
OP1
0P2
OP2
S
L
A
C
K

-

9
s
100 200
91
S
L
A
C
K

-

9
s
S
L
A
C
K

-

8
s
S
L
A
C
K

-

8
s
OP 1 OP1
90
OP2
Despatch
Final
Assembly
89
Assembly 2
Super
Market
32
20


Figure 10 Standard Operating sheet of Assembly Cell
Mechanical Loop
On receiving the withdrawal kanban from assembly cell the supermarket containing AL 123
will send a production kanban to machining cell. On receiving the production signal the
machining cell will produce parts according to sequence of the Heijunka box. The parts will
then move through the fifo lanes to heat treatment process and then again through the fifo
lane to the Grind cell in the same sequence. The grind cell will then work on the same
sequence as that of Heijunka box. The grind cell will push the material AR 124 to assembly
one (operation 9) for assembling with the electronic part (E124). The grind cell will also
produce AL 123 which will be place in the supermarket downstream, upstream of assembly
Op.
No.
Description
10 Assembly 2
11 Final Assembly
Two (2) oerators working as a team in a dedicated cell Supplied Processed
Assembly Cell
OP 1 will start from the supermarket upstream and will pick
material from it and then will go to the work bench and
perform his job for 88 sec. He will then pass his working object
to OP 2 sitting beside him, and then OP1 will move back to
upstream supermarket.
On receiving work from OP1, OP2 will finish the
assemblycovering some part of operation 10 and complete
operation 11. He will then place the object in the carrier to
shipping and then will return to his position.
Standard Operating Sheet
Operator
Route Safety Alert
Quality
Check Operator
Standard
WIP
10 10
11
21

cell. Assembly 1 will draw
material from the fifo lane
as well as upstream
supermarket containing E
124 and place the product in
the downstream
supermarket as ARE124.
The details of Grind Cell
and machining cell are
given by the Yamazumi
board, Walk diagrams and standard operating sheet, as shown below.
22


Figure 11 Yamazumi Board of Grind Cell
OP 1 OP 2
G
r
i
n
d
G
r
i
n
d
100
0
2
96.5
182
G
r
i
n
d
OP 1
100
0
23


Figure 12 Walk Diagram of Grind Cell

Figure 13 Standard Operating Sheet of Grind Cell

0
96.5
S
L
A
C
K

-

3
.
5
s
OP1
0P2
S
L
A
C
K

-

3
.
5
s
96.5
0P2
OP1
Fifo Lane,
Supermarket
S
L
A
C
K

-

3
.
5
s
S
L
A
C
K

-

3
.
5
s
2 100 200
Fifo Lane
Grind
Op.
No. Description
8 Grind
Supplied Processed
Grind Cell
Standard Operating Sheet
Two operators working in a dedicated cell, making two
products AL123 and AR 124
OP1 will start from picking up the material from fifo lane after
heat treat ment process, then will walk to the work bench to
perform operation 8 (grind). He will perform the task till 92.5
sec and then will move to fifolane to pick another part.
OP2 will receive the material from OP1 and after completing it
will place AL 123 in supermarket and AR 124 in fifo lane.
Operator
Route Safety Alert
Quality
Check Operator
Standard
WIP
8 8
24



Figure 14 Yamazumi Board of Machining Cell
D
e
b
u
r
0 0 0
OP 1 OP 2 OP 3 OP 4 OP 5 OP 1 OP 2 OP 1 OP 2
95 % TAKT
TIME
TAKT
TIME 100s
TAKT
TIME
100s
95 %
TAKT
TIME
100
95
91
81
C
N
C

2
E
t
c
h
i
n
g
Cycle 2
D
e
b
u
r
L
a
t
h
e
30
28
2
Cycle 1
E
t
c
h
i
n
g
C
N
C

1
D
e
b
u
r
D
e
b
u
r
L
a
t
h
e
79
76
72
For Both Cycles
95
84
81
30
2
28
UTIL. =
42%
UTIL. =
38%
UTIL. =
10%
UTIL. =
15%
D
e
b
u
r
100 100
74
80
90
91
TAKT
TIME
100s
UTIL.
77%
60
40
20
79
10
15
38
42
77
L
a
t
h
e
D
e
b
u
r
E
t
c
h
i
n
g
CNC 1
CNC 2
72
25


Figure 15 Walk Diagram of Machining Cell
0
C
Y
C
L
E

1
200 300
C
Y
C
L
E

1
S
L
A
C
K

-

5
s
S
L
A
C
K

-

5
s
400
OP 1 OP 1
C
Y
C
L
E

2
C
Y
C
L
E

2
S
L
A
C
K

-

5
s
OP 1
81 95 100 91 79
OP 1
S
L
A
C
K

-

5
s
Super
Market
2
Lather
OP 2
88
90
30
72
OP 2
OP 2
OP 2
OP1
130
191
OP 2
OP1
OP2 OP2
OP2
C
Y
C
L
E

1
OP 2 OP1 OP2
OP 2
74
84
S
L
A
C
K

-

1
0
s
176
195
OP1
193
C
Y
C
L
E

1
S
L
A
C
K

-

5
s
S
L
A
C
K

-

5
s
S
L
A
C
K

-

5
s
S
L
A
C
K

-

1
0
s
128
172
OP 2
C
Y
C
L
E

2
C
Y
C
L
E

2
S
L
A
C
K

-

5
s
S
L
A
C
K

-

5
s
28
S
L
A
C
K

-

5
s
Fifo Lane
Debur
Etching
CNC 1
CNC 2
26


Figure 16 Standard Operating Sheet of Machining Cell
Electronic Loop
The supermarket upstream to electronic assembly
cell will send a production kanban to electronic
assembly cell when the assembly1 workstation
removes a part from this supermarket. The
electronic assembly cell will then remove the
material from the electronic parts stored in a
supermarket, supplied by the supplier. The details of the electronic cell have been shown in
the following figures.
Op.
No. Description
2 Lathe
3 Debur
4 Ethcing
5 CNC 1
6 CNC2
Standard Operating Sheet
Machining Cell
OP1 will pick material from supermarket and perform
operation 2 (complete) and operation 3 (10 sec) and then will
move back to the supermarket
OP2 will start from operation three (continue) and perform
other operations 4, 5 and 6. After completing he will place the
part in fifo lane and then return to operation 3
Operator
Route
Standard
WIP Operator
Quality
Check Safety Alert
2
3
4
5
6
1
1
2
3
1
27


Figure 17 Yamazumi board of Electronic Assembly Cell
0 0
OP1 OP2 OP3
UTIL. =
87%
UTIL. =
87.5%
A
S
S
E
M
B
L
Y

1
E
A
S
S
E
M
B
L
Y

2
E
A
S
S
E
M
B
L
Y

3
E
UTIL. =
117.5%
235
110
170
200
A
S
S
E
M
B
L
Y

1
E
200
A
S
S
E
M
B
L
Y

1
E
2
65
172
175
TAKT
TIME 200s
UTIL. = 85%
UTIL. = 55%
TAKT
TIME 200s
95% TAKT
TIME
190
OP1 OP2 OP3
A
S
S
E
M
B
L
Y

2
E
A
S
S
E
M
B
L
Y

3
E
28


Figure 18 Walk Diagram of Electronic Assembly Cell

Figure 19 Standard Operating Sheet of the Electronic Assembly Cell
Saw Loop
0
OP2
OP3
172
OP1 OP1
0P2
26s
SLACK
26s
SLACK
25s
SLACK
175
170 174
OP1
0P2
OP2
OP3
65
174
172
OP1
2
Super
Market
Assembly
1E
Assembly
2E
Assembly
3E
Super
Market
Op.
No. Description
1E Assembly 1E
2E Assembly 2E
3E Assembly 3E
Three operator working in a dedicated cell
OP2 will continue the work on operation 1E, after completing it
will complete the next task (operation 2E), then will pass the
part to OP3, and will receive a new part from OP1
OP3 will complete the operation 3 and will place the part in
supermarket containing E124 and then will return to his
position to work on the next task.
Standard Operating Sheet
Electronic Assembly Cell
Supplied Processed
OP1 receive material from supermarket and then will perform
operation 1E (for 172 seconds), then will return to
supermarket to receive another part.
Operator
Route Safety Alert
Quality
Check Operator
Standard
WIP
1
E
3
E
1
E
2
E
29

The supermarket downstream to the saw machine will receive
withdrawal kanbans from the machining cell. As the material in the
supermarket falls below the predefined level a trigger signal will be
generated. This trigger signal will tell saw machine operator to start
production.



Supplier Loop
This loop will receive signals to when saw machine and
electronic assembly cell takes out material from their
respective supermarkets. These signals will be received in
withdrawal kanban post, which will then send them to the
production control department. These signals will tell the
production department the exact quantity consumed today
and what is required in future on daily basis. The WMCC
will now receive the material daily both from the Lanchester
Steel and Electronic Supplier. This daily receiving of
material from supply is termed as milky run in lean.



Customer Loop
The material enters in this loop from the pacemaker loop and
focuses on delivering the material to customer. In this, five
hundred and four (504) assemblies (252 each) is transported
to the customer daily via lorry in designated carriers. The
carriers have the capacity of 20 assemblies, as mentioned by
the customer.
30

Runner
The runner will carry the material and information in
the pacemaker loop. He will collect the information
in the form of kanban cards from the load levelling
box and transfer to assembly cell. In figure, the
orange lines show runners path in pacemaker loop.



2.4 Discussion
The future state map shown and explained above has been developed based on certain
considerations regarding the improvements that should happen to implement this system.
Some of the key points of improvements are discussed below along with their positions on
the future state map.
Kaizen (improvements)
i) SMED: SMED (single minute exchange of die) is important at saw machine,
machining cell (CNC1 and CNC2) and grinding cell. This will result in more
available time of production and will enable saw machine to produce parts every day.
ii) Milky Run: This improvement is concerned with the supplier. It is very necessary to
improve the capabilities of the supplier as well if there are changes to be made in the
manufacturing system. The result of milky run will be a great reduction in raw
material stocks.
iii) Reduced Batch Size: The batch size of bars being sawed on the saw machine has to be
reduced to decrease the inventory levels.
iv) Same QPR: The quality pass rate of every machine in a cell should be similar, so that
the produce material of the same quality level.
v) Increased Availability: The availability of heat treatment and grind machine is low in
comparison to that of others and it needs to be improved. 98% have been assumed in
Future State Map.
vi) C/T < 183s: As it has already been mentioned that the cells are operating at 95%
efficiency, therefore the cycle time of grinding cell must be improved to be lower than
183s. This will give workers some time to relax and gather themselves.
31

vii) 5S: The 5S principles must be applied everywhere on the shop floor, as well as offices
but most importantly it should be applied in the shipping department as it is very
important to deliver the correct product in correct amount.
viii) Visual Workplace: The development of visual workplace techniques and practices
on the shop floor will improve the efficiency and productivity of this system.

Figure 20 Kaizen Bursts on FSM
Benefits Obtained from Future State Map
A comparison table has been developed which will highlight the most important benefit of
the application of this system, which is as follows.

Table 2 Comparison between Current and Future State Map
Bars
Sawed
Bars
Machined
Parts
Heat
Treatment
(WIP)
Grind
Parts
Assembly 1
Parts
Final
Assembly
Finished
Goods
Production
Lead Time
Total
Inventory
Turns
Number of
Operators
Before
5 Days
12.1
Days
15.15 Days 10.1 Days
2.18
Days
1.98 Days 2.45 Days 15.6 Days 64.56 Days 4 14
After Lean
2 Days 1 Day 1 Day 3 Days 1 Day 1 Day 0 0 9 Days 27 12
32

The table shows that the production lead time has been reduced by almost seven times, which
is a huge turnaround by any means. Some of the other tangible and intangible benefits
obtained from this system are as follows
i) Reduced inventory
ii) Much more control over the production.
iii) More responsive to the customer demands
iv) Low operating costs
v) Visual management of the shop floor improved
vi) Quality of work will be improved.
vii) Decision making will move downwards in the hierarchy
viii) More sense of responsibility among operators.
ix) Transparency of workplace will increase.
Implementation Plan
Implementation of future state map is not easy. It requires a persistent effort from the
organisation. Its implementation takes time and does not give results instantly. Hence it
requires organisation to stay calm. It is also to be noted that implementation of the system is
not one mans work, it includes the decision made with the consensus of teams, as it may
require immense changes in setup of the shop floor, which inherent a risk in itself. It is better
if the implementation plan is developed and broken down in to monthly schedule of activities
on the basis of loops. Responsibilities must be assigned to individuals and departments
involved should be categorised. The implementation plan of this future state map is shown in
table below.
33


Table 3 Implementation Plan
5S Analysis
This would be analysed on the basis of 5 principles of 5S. The visual controls were used to
implement 5S methodology.
i) Sort: The reduction of inventory, by implementing kanban pull system has sorted out
the required and waste inventory.
ii) Set in Order: This was applied by setting up items in the supermarket at appropriate
places. The kanban cards ensured that only the required amount of material is
removed from the supermarkets.
34

iii) Shine: The supermarkets should be cleaned and in kept in order so that different parts
are easily distinguishable
iv) Standardise: The use of magnetic and white boards on the shop floor will help the
operators to understand the tasks and will reduce the operation time and would
increase the quality of product.
v) Sustain: The bordering on floors and tables will enable the material handler and
operators to place the material and machines at their marked positions. The bordering
on aisles will allow the transportation to move on the guided paths, which will
enhance safety. The use of andon lights will help supervisors and engineers to make
notice of problems quickly, hence sustaining the continuity of the process.
a. Seven Waste Analysis
vi) The following table will exhibit the impact of kanban system on this production
system in reducing various wastes.
S.
No.
Types of
Wastes
Comments
1 Defects The work in the cells is now distributed uniformly and is
balanced, which will improve the quality and remove the
defects and chances of errors
2 Overproduction The push system is bound to have the overproduction as it
depends on the forecasted demand and each process is given
tasks individually. Whereas in kanban system, pull system,
depends on the actual demand and processes are linked
together hence there is a presence of reduced and controlled
inventory (no overproduction)
3 Transportation In a typical push system workstations and cells are often
positioned as different departments, which results in frequent
transportation of goods from one process to another. In this
kanban pull system, work stations/cells are designed close
together along with the supermarkets between them, reducing
the unnecessary flow of goods.
4 Waiting The balancing of lines in machining, grind, electronic
assembly and assembly cells have created almost a
35

continuous flow, with the help of which the waiting time
between processes has been stopped.
5 Inventory With implementing the milky run methodology between
supplier and the storage solution, by making him deliver
material daily and inventory of raw material is reduced by 3
days. Also the reduction in batch size of saw operation has
reduced inventory by 10 days. The formation of
supermarkets with upper limits and fifo lanes have reduced
and put a control on building inventory.
6 Motion With implementation of visual controls such as andon, the
motion of the worker is reduced, as now he doesnt have to
run to supervisors and managers for any problem with the
line, he can give them the signal, reducing in motion. The use
of electronic kanban (in future) may further reduce the
motion of operators.
7 Processing Sawing process can be eliminated if the supplier is arranged,
who will give the sawed bars directly.
Table 4 Seven Waste Analysis

36

Conclusion
The study started with the Literature Review on the reasons of the application of lean tools in
industries, which highlighted the use of Lean in different scenarios and showed the flexibility
of lean techniques in different applications of industry. A case study was discussed and many
lean tools were applied to improve the current state of the industry (WMCC) to a much more
sophisticated and controlled future state. The major impact the application of lean had on the
production control of this company can be imagined from the fact that the production lead
time is now almost 1/7 of the current state map and the inventory turns have increased by 8
times. The implementation plan of the Future State Map was also discussed which showed
the places where improvements were required and needs observation.

37

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