Value Stream Analysis and Future State Design for FEI (PROD 1024)

This report presents a comprehensive analysis of Farm Equipment International's (FEI) hydraulic control section production process, focusing on the application of lean manufacturing principles. The report begins with a detailed current state value stream map, illustrating the flow of materials and information from suppliers to customers. It then addresses eight key questions crucial for designing the future state, including the calculation and significance of Takt time, the choice between finished goods supermarket or FIFO, and the identification of continuous flow opportunities. The analysis extends to the implementation of pull systems, the scheduling point, and the production mix at the pacemaker process, along with the consistent work processes. The report concludes with a future state map detailing the processes necessary to operate the factory according to lean manufacturing principles and an implementation plan outlining the steps required to transition from the current state to the desired future state, including specific process improvements and waste reduction strategies. The report highlights the importance of reducing lead times, optimizing operator allocation, and implementing Kanban systems to enhance efficiency and responsiveness in the production of hydraulic control sections.

Question-1
1. Present a map of the value stream giving the processes of door-to-door service of the
current manufacturing work.

SUPLIERS:
KENTISH TUBE
SYSTEM and Essex
Coating Limited
16 weeks
order Production
Control MRP
60 days
order Customer
2 weeks
order
2 weeks
order
Daily Priorities
1 X 2 Weeks Shop Order Daily
Shipment 1 X Day
20 Days
uncut
material
Cutting
Welding 1 Welding 2 Deflash
Painting
Outside
Contract
Assembly Shipping
5 days 3 days 3 days 5 days 6 days 4 days
C/T-15 sec C/T-15 sec C/T-30 sec C/T-30 sec C/T-195
Sec
c/p-15
min(L) c/o- 10 sec c/o- 10 sec c/o- 10 sec C/O-10
Min
20 Days
Raw
Material
c/o-60
min(D)
c/p-15
min(L)
c/p-15
min(L)
c/p-15
min(L)
Reliability-
100%
Reliability-
100%
c/o-60
min(D)
c/o-60
min(D)
c/o-60
min(D) Shifts: 2
Shifts: 2 Reliability-
80%
Reliability-
80%
Reliability-
100%
Shifts: 2 Shifts: 2 Shifts: 2 Total Lead Time-48 days
Process Time-315 Sec

Machining
1
C/T-30 Sec
C/O-120
Min
Reliability-
100%
Shifts: 2 5 days 3 days 3 days 5 days 2 days 6days 4 days
30 sec 30 sec 30 sec 30 sec 195 sec

Qusetion-2
The eight important questions given below for the future state design are to be answered.
Q1. Elaborate the concept of Takt time?
Assuming the monthly average, 20 working days taken by the FEI Company, comes to 5
working days per week, wherein everyday there are two shifts of 8 hours, and each of the shifts
has two breaks of 15 minutes which ultimately can result in the time of production, availability
of 7 hours and 30 minutes in each shift.
Available Production Time = 7.5 Hours/shift
The production time that can be accessed can be converted from hours to seconds by multiplying
with 3600
Available Production Time = 7.5 (hours/shift) * 3600 (seconds)
= 27000 seconds/shift.
For calculating the daily available time, available production time has to be multiplied with
number of shifts which is 2,
Available Production Time= 27000 seconds/shift *2 = 54000 seconds/day.
24000 per month hydraulic control sections are needed by the customer. In order to quantify the
customer’s regular needs for hydraulic control divisions, it has to be divided by the number of
Company’s working days which is 20.

Daily Production = 24000/20 = 1200 piece per day.
To derive the Takt Time in the Farm Equipment Company, it has to be calculated like: dividing
the Available production time by the daily customer demand as exhibited below:
Takt Time = the daily Available production time/ the daily customer demand
Takt Time = 5400/1200 = 45 seconds.
The illustrations shows that the Farm is required to generate the hydraulic control divisions in
each 45 seconds to fulfill the customer needs in the given hours availability.
Q2.Does the specified company utilises finished goods supermarket or should it opt for the
shipping system option I.E. FIFO?
The Farm International, which delivers the hydraulic control section, are available in the 30
various lengths, 3 different diameters, and 2 several kinds of connectors. At the end of every
hydraulic control section, there may be a unique connector. The Company is approximately
supplying 360 various finished hydraulic control sections and due to these many vast availability
of the variety, it is tough to develop more than 360 complete goods supermarkets. The Company
avails direct shipping for the implementation of these sections, as it helps in reducing both the
inventory levels and the money associated to this inventory.
Q3. Where can the company initiate the continuous flow?
The time data cycle, when figured out, results from the aforementioned two processes of cutting
and matching takes shorter time as compared to the Takt time even while their rotational time is
different and impossible for flow rationally and continuously. Whereas the other three processes,
welding 1, welding 2 and deflash, possesses similar cycle being in the similar process family.

Combined together, concrete time for individual process is 40 seconds while the operator’s cycle
time is 10 seconds and its 30 seconds for the machine.
The all combined cycle time is lower in comparison to the Takt time and also proved that the
rationale and non-disturbed flow is possible amongst the above mentioned three processes.
Figure 2: The current time scale factor
Abovementioned diagram shows that there is 195 seconds cycle time in the given assembly
which is far higher than the Takt Time of 45 seconds. The complete assembly work content
when divided by the Takt Time results in the number of operators required to run assembly at
takt.
Number of Operators Required = Total Cycle Time / Takt Time
= 195/45 = 4.33 Operators

When logically thought, will the five operators be selected, bring in the content of the work
within the Takt Time?
Currently, real time workstation is managing with 6 operators and the cycle time taken is 195
seconds. But, a Kaizen has to be applied to the workstation in order to optimize the process and
also eliminating waste. Kaizen is also applied to lead the cycle time within the Takt time.
Considering 5 operators, the fresh cycle time taken for the workstation should be derived by
dividing cycle time with the number of operators.
The cycle time of assembly workstation = Total cycle / Number of Operators
= 195/5 = 39 seconds.
The cycle time of the assembly workstations is 39 seconds with 5 operators, with a difference of
6 seconds in the Takt time.
Q4. State that the usage of supermarket pull systems by the Company?
The Company can build its first supermarket pull system on the front side of the machining and
cutting process considering that the raw goods provided is coming from the two different
suppliers engaged it the Company. These suppliers are Kentish Tube System Ltd providing tubes
and Essex Casting Ltd engaged in the supply of raw castings for the end connectors.
The system of the pull belonging to the 2nd supermarket has been amongst the cutting
workstation and the welding1, welding 2 and deflash workstations, together along with the
machining of casting workstation and the combined workstation. Such application is done in case
of the various running cycle times amongst these processes. Summarizing, the cutting and

machining cycle time is much rapid as compared to the combined workstation and the Takt
Time.
The Company also works to cling a production Kanban to each of the 5 available hydraulic
controls in the supermarket, and also utilize the same to acknowledge the cutting and machining
process in cases where bin has been eliminated from the supermarket, which shall also enable
the instruction of cutting and machining to produce the 5 spare parts and move the same to the
supermarket.
Q5. In the production chain, which is the single point that the company must schedule?
The Farm International Company has specified the scheduling point, being concrete workstation
welding 1, welding 2 and the deflash. This stated central area shall monitor the Company’s
whole steering- bracket value stream, by hiring the First in First Out method (FIFO). The
products must also be sent to the painting, also the assembly workstation and finally to the
shipping unit. Because of the downstream of the pacemaker processes, the steps should be
carried out in an order. Kanban would be sending orders to these workstations for the production
to start in the processes of cutting and machining.
Q6. In the pacemaker process, what should company do to adopt the production mix?
At the pacemaker processes, balancing the production mix requires Company to apply a
Heijunka box which if created by the Kanban slots, is utilized as leveling load box for every
single product configuration. Every Kanban card is inclusive of the 5 hydraulic control sections.

Considering these sections, it will benefit in estimating the both the quantum of work and time
for its production.
Q7. For maintaining consistency in the pacemaker process, which consistent work process
must be released by the company?
The consistent work increment of welding1, welding 2 and deflash workstation will be arrived at
by multiplying the 45 Takt time with 5 pieces per tray pack size.
Work Increment = Takt Time * Pack Size = 45*5 = 225 seconds = 3.75 minutes.
Illustrations shown above are done to show calculations regarding the hydraulic control section
pitch, and the consideration amongst one Kanban for single tray of 5 hydraulic control sections.
By showing this calculation, it is implied that the Company would attempt on the work
instructions, one Kanban at a time and scheduled withdrawal of finished goods at its welding 1,
welding 2 and deflash workstation. As shown above, in the time gap of every 3.75 minutes, the
material handler would invite the next Kanban to the welding 1, welding 2 and deflash
workstation and also roll back the empty trays in the finished goods area for filling.
Q8. Enumerate the improvement processes important for carrying out the value stream of
the company to maintain as the future-state design suggests?
To facilitate improvement in the Company processes, it is always better to have a value
streamline. Below are the process improvements highlights which must be implemented and
executed:

⮚ For effecting reduction in the lead time of production, the painting contractor must
always be inside the factory.
⮚ The operators currently working in the assembly station must need reduction to five
operators and made to work at a stretch in a flow.
⮚ Supply should be doubled instead of once in every 14 days.
⮚ For reducing the lead time under Takt, a combined workstation of welding 1, welding 2
and deflash must be developed.
⮚ Changeover time must be reduced in the cutting and machining of casting workstation.
⮚ By reducing and if possible, extinguishing all the waste, the rotation time taken by the
assembly workstation must be reduced from 195 second to 39 seconds.

Question-3. What is future state map for specifying important processes for operating
factory as per the lean manufacturing principles.
Value Stream Mapping is required for operating the lean manufacturing process. VSM is nothing
but mapping of available material and the information flows which are needed to synchronize
amongst the tasks which are carried out by the manufacturers, suppliers and the distributors to
deliver the products to its customers.

SUPLIERS: KENTIST TUBE
SYSTEM and Essex Coating
Limited
2 X weeks
order
Production Control
MRP
2 X weeks
order Customer
OXOX
2 X Week
Shop Order
Pitch-3.75 Daily
20 Days
uncut
material
Cutting
Welding
1, 2 &
Deflash
FIFO Painting
Outside
Contract
FIFO Assembly FIFO FIFO Shipping
5 days 3 days 3 days 5 days 6 days 4 days
C/T-15 sec
c/o- 10 sec
Reliability-
100%
Shifts:2
Takt Time=45 sec C/T-
30 sec C/O-2 min
Reliability-100% Shift-2
C/T-195 Sec
C/O-5 Min
20 Days
Raw
Material
Reliability-
100%
Machining Shifts: 2
Shifts: 2
Total Lead Time-48 days
Process Time-315 Sec
C/T-15 sec
c/o- 10 sec
Reliability-
100%
Shifts:2