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Lean Six Sigma Assignment

Value Stream Mapping-DEP Engine Mfg. Plant

Submitted by :

Kalla Surya Teja (2016PGP164)


Kanduri Shanmukvenkata Chaitanya (2016PGP166)
Vasantada Srikanth (2016PGP423)
1. Value Stream Map
2. What is the Takt time for the DEP Engine assembly plant? What Process is Bottle
Neck and Why?

2.1.Takt Time: Takt time is the rate of customer demand


Takt time = Available Time / Demand

Takt Time Calculation:


Shift duration Hours 8
Working Time in a shift min 420
Shifts in a day 3
Total Time in a day min 1260
Customer Demand Engines/day 1700
Takt Time min/ Engine 0.74
Takt Time Sec/ Engine 44.47

Takt time = 44.47 Sec

2.2.Bottleneck:

Units Engine Short Engine Hot Engine Shipping


Definition Block with Testing Dressing Development
Point Trim
Assembly
Cycle Time (CT) Sec 40 48 37 40 38 38
Takt Time Sec 44.47 44.47 44.47 44.47 44.47 44.47

60
50
40
30
20
10 Cycle Time (CT)
0
Takt Time

Here Short Block is the bottle Neck Process. For Short Block Process the Cycle Time > Takt
Time. Hence it is the Bottleneck
3. What is the Value added ratio? Share ideas on how will you go about improving
the value added ratio?

3.1. Value added ratio:

Value added ratio the ratio of total value added time to non-value added time

Value added ratio = Value added time / Non Value added time
= 241 sec / 249490 Sec
= 0.097%
3.2.Improving the Value added ratio:

Units Engine Short Engine Hot Engine Shipping


Definition Block with Testing Dressing Development
Point Trim
Assembly

Rejection % 0.0% 3.0% 1.0% 1.0% 0.5% 0.0%


Machine
Reliability % 99% 94% 90% 99% 99% NA
Observed
Inventory Blocks 1700 1700 3400 850 0 340
In Process
Inventory Blocks - 1700 850 1700 100 1700

 Inventory levels are quite high. It will create to large weighting time.
 Higher inventory levels leads to high lead times and low value added ratio.
 Smaller batches are required to reduce high inventory levels. Lean Principles are
required to achieve lower inventory levels in the process.
 Rejection rates are quite high in short block process. Improvement of through six
sigma practice to reduce rejection rate.
 Machine reliability is low in Short block (94%) and Trim Assembly (90%). Proper
maintenance or replacement of the machine is required
 Based on the Takt time analysis the process has employed more work force than
what is required.

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