Farm Equipment International (FEI) is an organization that specializes in creating sub-assemblies as well as components for agricultural purposes. Moreover, the company has presently planned to consider a particular family product hydraulic control section. Based on the case scenario it has been found that FEI mainly considers 60 days as lead-time to their targeted customers. Other than this, the case study also confirms some of the relevant data and information about total time undertaken for work and requirements of customer such as

20 days of working in a particular month
2 shifts provided to labors in a single day
Each of the shifts are of 8 hours
2 respective breaks are provided to labors for each of the shifts that take a time of 15 minutes that is (15 minutes * 2 breaks = 30 minutes)
24000 hydraulic control sections are produced each month

Therefore, based on the above information it can be stated that

Takt Time= Available working time per shift / Customer demand rate per shift

Available working time per shift = 8 hours * 3600 - 30 minutes * 60 = 27000 seconds per shift

Customer demand rate per shift = 24000 / (20 working days * 2 shifts) = 600 hydraulic control each shift.

Therefore, the time that FEI takes for choosing product family is 27000 seconds per shift / 600 hydraulic control each shift = 45 seconds. Hence, it can be concluded from the above calculation that FEI need to produce each hydraulic control section within the time of 45 seconds to meet the customer needs and demands effectively.

QUESTION 2: Should FEI build hydraulic control sections to a finished goods supermarket or directly to shipping?

In accordance with the case scenario, it has been analyzed that Farm Equipment International (FEI) has planned to revise its business operation and start producing a family product hydraulic control sections. Hydraulic control sections are mainly tubes of metal along with a cast inter-mediator, which is welded at every node of the tube. The product is available in 3 diameters, 30 different lengths and 2 types of connectors. Moreover, at the end of each of the products have a different type of connector. Thus, it is clear that FEI required to make plan of producing 360 (30 different lengths * 3 diameters * 3) different types of finished products like hydraulic control sections. However, each of the products is being designed according to customer demand hence; quantity, as well as the configuration of the product, may vary accordingly.

Figure 2: Building directly to shipping

(Source: Created by learner)

Apart from this, it is not much possible for the company to store all the 360 different types of finished goods each month within the supermarket. Therefore, in order to manage the production as well as the in-house storage, it will be beneficial for the company, Farm Equipment International to ship the finished goods directly to the customers. Moreover, the case study further concludes that Farm Equipment International receives a time of 2 weeks for configuration before they can ship their products directly to the customers. This, essentially found to be beneficial for the management team as it will avoid bringing any complication for the manufacturing structure. Other than this, it will also help in predicting demand for the product that will endure their future planning. With the help of this picture, it has been observed that consumers demand makes an effective way for implementing the supply management way in a regular manner. After getting an order from the side of consumer, the order picked up by radial ships from the stores, and then the delivery man starts parceling to the customers.

QUESTION 3: Where can FEI introduce continuous flow?

Based on the case study, it has been analyzed that procedure time for both cutting and machining the product requires 1 hour and 2 hours respectively. Moreover, the case study also indicates that the time undertaken by FEI for the changeover is a primary issue and barrier that they need to work on in order to generate a flow within the work process. Other than this, resolving this issue will also help the company in expanding its operation further in the market and increase demand structure effectively over time.

Table 1: FEI Continuous Flow

Hence, it will be beneficial for them if they include lean management approach that will certainly guide them in enhancing production. Based on the present state map, it can be found that overall time considered for cycling the manufacturing process related to welding both 1 and 2 and deflash is of a total time period of 40 seconds that includes 10 for the operating purpose and other 30 seconds for machining the product. Furthermore, it can be concluded that cycling time can be reduced by 10 seconds more if the operator does the working within the time taken during machining. Thus, the extra 10 seconds can be included within the 30 seconds of operating and machining the overall product.

Based on the case scenario it can be stated that cycling time of cutting is of 15 seconds and including this process within the continuous flow will further help in reducing the time to a certain extent. On the other hand, the mechanizing process found to be having a longer time of 2 hours and serves two particular welding processes. Moreover, it has further been analyzed from the case scenario that each of the three processes considers a time period of 30 seconds each that is total cycle time of the three processes 90 seconds (30sends * 3 processes). Further dividing the three cycling time by the takt time it can be found that each process cycle requires two specific operators (90 seconds /45 seconds = two operators). On the other hand, the company can further use the FIFO method between two specific decoupled procedures. Moreover, the overall lead-time related to painting a particular contractor is about 2 days.

QUESTION 4: Where will FEI need to use supermarket pull systems?

A total of Four Supermarket Pull system is being used by FEI likewise, it has been mentioned in the previous questions that the process of cutting machining is not being comprised in the ongoing flow and needs a long stock. In that case, a system of Supermarket is the only point, which can be used as the solution to regulate the stocks and connect these two procedures with the process of upstream (Roser and Nakano, 2015). The process of upstream includes the process of wielding/deflash. However, the hindrances are still there, as the machines required switching between the lengths and diameters. In the procedure of creating the state map for future use, it is being discussed about the way to build a possible supermarket. This requires regulation in the management of the production mix.

The design of the pull system begins with the requirement of the customer and the customers of cutting and machining are the welding/deflash process. 1200 cut tubes are being needed by the cell in the recent time for the per day. The cell-based on the demand of the customers the Kanban production is to be managed.

QUESTION 5: What single point in the production chain (the pacemaker process) should FEI schedule?

This question is evaluating the ability to identify the single point where FEI must be scheduled. The scheduling of the FEI is known as the pacemaker process (Borbély et al., 2016). FEI will regulate the process of production, which will set the rhythm of the production process that all the down-stream works in an effective manner.

Transferring the process of down-stream of pacemaker to finished products is required to take place as a flow, which is the ultimate down-stream process of flow that is ongoing. As it is mentioned in the question earlier, the beginning of the flow this is continuous and is the welding or deflashes. Therefore, building for process of the flash will be the peacemaker of FEI.

QUESTION 6: How should FEI level the production mix at the pacemaker process?

It is being easier to routine the long run product type and the changeover can be avoided, However, it is almost impossible for FEI. FEI considered the production would be around 360 various types of the hydraulic regulator (Syrkin et al., 2017). This will need to have a big stock of finished goods; in addition, the demand of the consumer differs between 20 to 200 pieces.

Leveling of the mixture of a product refers to the distribution of the production of various products in an even way over a period. This process will assist the FEI to meet the requirements of the customers without storing too many stocks (Lorts, 2016). The average demand for the products comes from the customers can be assumed as 50 pieces, as the demand is variable on a regular basis. It also assures the flow of information between the regulation of the production and the pacemaker is fluid and smooth.

The hydraulic control is being stored in five boxes hat s, an average of 10 boxes per customer.

Process of level loading is being introduced by the FEI between the control of production and the pacemaker process at the computation, however, the increment varies (the pitch varies because the demand also varies) and this is the main reason the transfer of information the communication process between these two procedures should be immediate and updated. This could be enhanced by the implementation of software, which will be more effective in performance in order to develop an enhanced flow of information.

QUESTION 7: What consistent increment of work should FEI release and take away at the pacemaker process?

According to the formula, it is being known that Pitch = Takt time × Pitch Batch size. Here, the size of batch is related to the procedure of pacemaker.

The welding/deflash is pacemaker process in this case. The suppliers of the processes are the methods of cutting and machining, the painting contractor is the customer. In this case, the supermarket pull system is being used amid the process of pacemaker and its provider and a FIFO line of around 1200 pieces is being used in order to congregate the requirement of the consumers. Therefore, it is being understood that about 50 pieces are to be released to the operation of pacemaker for each cycle of the Pitch.

Pitch= 45 × 50=2250= 37.5 minutes in each of the 10 boxes.

In the regular interval of 37.5 minutes, the pacemaker will modify the batch.

As the time of exchange of the processes is being reduced by the means of kaizen and SMED, the pitch will be reduced. As theses enhancement of being improved the batch size may be reduced.

QUESTION 8: What process improvement will be necessary for FEI’s value stream to flow as the future state-design describes?

This Question will evaluate the required improvement, which is needed for the smooth performance of the glow, which is being mentioned in the previous process.

The changeover time of the process is decreased. The enhancement is significant, critical and vital if the management wants the FEI to work in accordance with the state map of the future.
Another point of enhancement will be the reduction in the lead-time of the pain process. Working more closely with the contractor of painting is very much required and the implementation of a FIFO line between the FEI and the contractor of painting is very significant. Moreover, in the lean approach, it can be tried as the just in time process with the contractor of the painting.
The process of assembly is to be reduced by reducing the time of work.
SRM or the Supplier Relationship Management for the enhancement is the process of planning and is used to improve the coordination with the providers. Working on every week suppliers with Ketish Tube Systems Ltd. and Essex Casting Ltd.

PIII. Produce a future state map detailing the processes necessary to operate the factory according to lean manufacturing principles.

Figure 3: Future state map detailing the processes necessary to operate

IV. Produce an implementation plan for the company to move from present state to a future state.

Kaizen

Kaizen has also considered as the continuous improvement full stop it is the strategy in which employees of all levels in a company involved in working together actively for the achievement of proper manufacturing processes. According to the view of Minh (2015), it helps in merging the various talents in a company for the creation of a powerful force for improvement in the manufacturing processes. It is considered as a beginning step for improving the atmosphere of the workplace. According to the view of Mayr et al. (2018), the operators can collaborate with each other and cooperate for the improvement of the work process. Continuous improvement can attract the audience towards the products of the company. The operation should be there within all the sections of the employees in the company. Democratic leadership should be followed in this strategy. This is because maintaining a communicative circuit needs this type of leadership style. In this style of leadership, the administrative body is in great communication with the different stakeholders mainly employees.

The employees are given opportunities to share their ideas about improving the manufacturing process. According to the opinion of Svensson et al. (2015), this process suggests that all the personnel should stop working after predicting error or abnormality in the manufacturing process. After stopping the work, they should discuss the solution to solve this problem. Giving proper training to the employees will reduce the errors in the manufacturing process. A program of improving the manufacturing processes continuously should involve the Kaizen burst event. According to the opinion of Klimecka-Tatar (2017), this will help the process to be more successful. Mainly, Kaizen is a word that means changing a particular process for its betterment. It is mainly a business philosophy prevalent in Japan and explains that continuous operation improvement needs all the employees. The philosophy of Kaizen involves a varied range of ideas.

Preventive maintenance and OEE (Overall Equipment Effectiveness)

It has been noticed that most of the lead times involved in the steam regarding the value. It has been seen that these lead times are generally from the section of machinery. The proper and enhancing management process and operation of the machines will be helpful in minimizing the lead-time of the procedures. According to the view of Mazlum and Pekericli (2016), In order to exploit the machinery efficiently and effectively accompany should not focus on neglecting their implementation of maintenance system, which will be preventive. This maintenance will lead to the occurrence of fewer errors or breakdowns. Through this process, a company becomes efficient by monitoring the working of the machine and their effectiveness. This will minimize or minimize the lead-time of the procedures hugely.

SMED

It is considered as a system that is used for reducing the time usually for completing the changeovers in equipment. In FEI, it has been stated that the time for the changeover is a huge challenge. As per the viewpoint of Buckley et al. (2017), the time for change over is after 2 hours for the process of machining, with it almost an hour for the other processes. Conduction of a proper Research and program is needed to minimize the time of changeover. The principles of need are focused on the improvement of processes, which is helpful in improving efficiency and attaining high profitability. The philosophy or concept is very simple. On the other hand, implementing those concepts is very hard and close to unimaginable thinking. There are few principles of SMED, which are:

Identification of internal and external tasks of the changeover
Screening each other’s task in a convenient way
Emphasizing on providing a low-cost solution
It has the main objective of eradicating the possibility of long change over time.

Stage 1

Some tasks can be completed before stopping the Machines for the changeover. As per the opinion of Heizer et al. (2017), this will need recruiting the right employees, repairing, preparing the tools and parts of the machines. Three logical techniques are there for implementing this and that is:

Developing and implementing the checklist of the changeovers
Performing checks on the functions of parts and the tools
Reducing the cost of materials, tools, and transportation

Stage 2

Only the functions of stage one will not minimize the time for internal setup within a range of single minutes. This will require implementation of stage 2.

It is important to check the functions and the purposes of every option in the present internal setup.
This page involves fending off ways for the conversion of internal setups to the external setups.

There are few techniques of converting the internal setup to external setup and those techniques are listed as follows:

Preparation of operating conditions in advance
Standardization of the functions
Applying the intermediary Jigs

Stage 3

In this stage, the internal and external setup that was left is involved in the process of improvement. It can be done very fluently by looking at each of the functions of operations and purpose again. There are four general approaches to improve the external and internal setup and those are:

External setup

Maintenance of an organized workplace which will be visually aid

Internal setup

Implementation of The parallel options
Eradicating the requirement of adjustments
Applying the functional clamps
Mechanization of the functions

Supply chain response Matrix

The supply chain response matrix is recognized as one of the most popular tools that are being utilized for analyzing lead-time as well as inventory within any kind of business organizations. In this matrix, lead-time is being displayed in the X-axis whereas inventory of an organizations displays in the Y-axis respectively. These tools can be recognized as beneficial tools for FEI. In the context of the present state map, it has been found that FEI is facing issues related to the long and unnecessary inventory. Thus, it cane stated that FEI in future can develop 360 hydraulic controls. However, implementations of such controls can be recognized as challenging factors for FEI. As per the study of Kusi-Sarpong et al. (2016), analysis of organizational inventory is recognized as the common process during development of supply chain system. On the other hand, Supply Chian Responsive Matrix is recognized as one of those tools, which can be utilized for analyzing and determining lead-time, stick and process effectively and systematically.

Apart from this, in relation to the FEI, it can be stated that they could utilize FIFO as well as supermarket lines for reducing organizational inventory. Additionally, by utilizing this tools, FEI could able to analyze their lead-time, process, and stock in such as way so that they could able to enhance their business productivity as well as business growth in the future (Tundys, 2018). It is being constructed with the help of reviewing the stages related to the business processes, lead-time, and inventory after which the results are being displayed pictorially. The Supply chain Response matrix helps any business organization to analyze critical uncertainties as well as helps to resolve those issues in an appropriate manner. Therefore, it can be stated that these tools can also be utilized during the lean manufacturing process for identifying future process risks as well as for reducing organizational future inventory.

5S is recognized as one of the most effective tools related to Lean Manufacturing. This tool is utilized for organizing organizations working environment efficiency, clean, and safe. This further helps the business organizations to enhance their business productivity as well as develops standardize working environment. As per the ideas of Alaskari et al. (2016), 5S defines effective steps through which organizational processes can be performed in a systematic and effective way. This 5S is being associated with the five components such as Sort, Straighten, Shine, Standardize, and sustain respectively. Thus, it can be stated that the nature 5S methodology or process helps business organizations to eliminate unwanted items(Sort), organize business activities for optimizing flow and efficiency(Strengthen), clean workplace areas for identifying organizational issues(Shine), executes labels and color coding for staying consistent (Satndaridze) and improve organizational behavior that further helps to sustain business activities more effectively.

It has been found that many business organizations or companies are being utilized lean manufacturing process by implementing and executing 5S technologies. As per the study of Garza-Reyes et al. (2018), 5S methodology is recognized as the Japanese methodology, which is being developed for minimizing or reducing manufacturing errors effectively and systematically. Utilization of 5S methodology helps any business organizations to enhance their business productivity, increase safety, as well as reduce business waste in a better way.

In the context of a future state map, it can be stated that introducing new and modern cells at the working place by combining deflash and workshop would be beneficial. This would help to organize the cell effectively from the initial stage based on the 5S methodology process. Based on the ideas of Rao et al. (2017), it is significant and necessary to organize and extend a working environment in a better way so that organizational effectiveness, as well as productivity, can be increased. It has been observed that the 5S process also includes other types of similar processes such as machining and the cutting assembly, which is mainly recognized as visual management. These process also helps to organize and standardize workshop as well as a working area in a more better and effective way. Apart from this, it can also be stated that with the help of this process business organizations can able to develop a lean manufacturing process that would further help to minimize lead-time working process time as well.

KPI

KPI or Key Performance Indicators are recognized as the measurable values, which explain or define how a company could effectively obtain their key or targeted business objectives. It has been noticed that maximum business organizations is being utilized KIP for analysis of their business success by achieving their future business objective (Mourtzis et al. 2017). Thus, in the context of FEI, it can be stated that they should utilize some of the KPI tools and techniques in order to manage and control their activities. This would help them to improve their existing business operations as well as future business productivity effectively and systematically.

It has been found that lean KPI enables leaders in process improvement, engineers, and managers in the following ways:

Helps in determining present performance of the process or system that is being evaluated
Helps in deterring and identifying suitable performance benchmark
Helps in evaluating process and lean improvements Kaizen or initiatives

Thus, it can be stated that this methods can be considered as the suitable methods for improving present business process as well as future growth. In the context of FEI, the below mentioned KPI can be followed:

Count

It has been found that organizational floor metric mainly depends on the developed organizational products. On the other hand, the count is mainly defines either number of produced products from the last change over time of machine or sum of the production in the overall week or shift.

Takt time

Takt time refers to the time amount or the cycle time, which is essential for completing targeted task. This would help to analyze the estimated time that would be required for completing any kind of a particular task (Sangwa and Sangwan, 2018). This time mainly denotes the time requires for producing any particular task.

Overall Equipment Effectiveness (OEE)

OEE is recognized as the metric that mainly multiplies the quality and performance by availability for determining the utilization of task resources.

Downtime

Downtime is recognized as the one of the major and important key aspect in KPI that helps to keep track of the process that involves in any particular task. Downtime is also recognized as the easy and effective way to enhance business profitability and business growth.

ERP

The system of ERP helps in offering different advantages in this latest business environment. As per the opinion of Bititci et al. (2016), this is because they help in lowering the operating costs, increasing the satisfaction of the customers and reducing the time cycle.

Implementation of the system will incur many benefits for FEI and that are:

Optimizing the process of planning for the workshops
Maintaining the consistency of the information
Maintaining a communicative circuit between various departments of the company
It is a very effective tool for the procedure of decision making

This is a constructive method for the management of information flow and gathering data by the managers.

References

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