Value Stream Mapping and Interviews with Michigan Steel Company - Term Paper Example

Value Stream Mapping Table of Contents 1 Abstract……………………………………………………………………………..3 2 Introduction…………………………………………………………………………3 3 Methods……………………………………………………………………………..4 3.1 Collecting Relevant Data…………………………………………………5 3.2 Interviews with Michigan Steel Company………………………………5 3.3 Time Studies………………………………………………………………6 3.4 Value Stream Map……………………………………………………….7 4 Results and Discussions……………………………………………………………7 4.1 Current Information Flow……………………………………………….7 4.2 Material Flow…………………………………………………………….8 4.3 Reduction of lead time……………………….…………………………9. 5 Conclusions…………………………………………………...………..………….. 9 6 Appendices ………………………………………………………………………….11 6.1 Appendix One: Current State Map…………………………………….11. 6.2 Appendix Two: Future State Map………………………………………12 7 Reference List………………………………………………………………………13 Abstract Michigan Steel Company deals with manufacture of steel (an alloy of Carbon and Iron). Steel is a raw material to a wide variety of products such as vehicle chassis building to the building and real estate. The lead time for the entire processing is approximately one month from when the raw materials are turned to steel ready for shipment. This paper lays down a project that shall seek to reduce the entire lead time employed during the production of this steel to the time it reaches the consumer. Various stages of cycle times are evaluated and their averages are recorded in the final value stream map. The production lead time is also reduced by analyzing the primary data obtained from observing actual processes in the company’s factory. Further, this paper discusses the methods employed in the analysis and drawing of Michigan Steel Company’s value stream map. These methods are vital in the calculation of the cycle time, changeover time and uptime. The number of shifts for each worker and EPE (every part every) are also calculated. The target number of pieces is also recommended. Finally the paper concludes by giving the results of the entire project and further discusses them giving recommendation where necessary. 2 Introduction The value stream technique is mostly used in the design and analysis of information and material flow that will bring a product or service to the final customer or consumer. Furthermore, the technique also aims at using minimal resources whilst maximizing production. In the analysis of this one is required to draw a current state map that illustrates the whole value stream mapping technique employed. This paper shall embark on discussing the current state map for the Michigan Steel Company and evaluate is value mapping technique. In order to successfully analyze the technique at Michigan Steel Company, the entire chain of steel production is broken down into discrete levels of production and information flow. The step by step flow from production is evaluated and the lead and processing time taken to complete the production is also determined. The route taken by the product until it reaches the State Street Assembly (customer) is also illustrated in the Michigan Steel Company’s current state map situation. This paper shall then discuss this process’s methods, results and efficiency. 3 Methods The biggest problem met by Michigan Steel Company was the relevant optimal lead time for the entire production process. This necessitated the team to set up objectives that are oriented towards goal achievement. The main goals of project analysis will be the creation of a viable VSM that can be employed in the future prospects of the company. The VSM shall illustrate the ideal information and material that can be employed in the production process at Michigan Steel Company. Its implementation shall see the lead current time placed at 23.6 seconds and the Processing time at 188 seconds. During the implementation of this project’s analysis, its objectives included Identifying the product, drawing a current state map, assessing information and implementing the changes. Its objectives included (Tapping, Luyster & Shuker, 2002) : Drawing of a Current state map. Creation of an arena simulation Current VSM analysis. Reduce the lead time In finding out this strategies employed included: Seeking information from employees Carrying out time studies The observation of the processes throughout the day and the entire weeks. Use of Microsoft software for the creation of current state map. 3.1 Collecting Relevant Data. This is an essential process in obtaining a VSM. First, data was acquired directly from the company. In order to obtain this kind of data operation managers as well as the floor managers had to be contacted. To ensure information flow, it was necessary to remain in contact through the e-mail. The production lines were visited and the observations were recorded and various time studies conducted. The teams tasked with doing the information collection were divided to facilitate its completion and success. 3.2 Interviews with Michigan Steel Company Initially, large amounts of information where obtained by conducting research within the factory. The operation managers provided production and quality product data. Furthermore, they provided spreadsheets of data, floor layouts and operation instructions. They also answered vital questions relevant to the concerns of the company, the drawing of the VSM and the operations flow. Actual touring of company availed further information on the primary level. One on one questions where answered about the machines involved, their cycle time and prior inhibiting factors experienced during production. Visiting the company in person ensured that the actual process is observed, how the machines operate and even the time data can be recorded or anticipated. A visit gives valuable data about day to day operations of the factory and invoked ideas that find the areas that are fit for improvement (Chou, 2009; Duggan, 2002). 3.3 Time Studies In order to evaluate time studies one need to accept that this studies are basically aimed at measuring human work with sole purpose of determining the time take to complete a certain task. These were conducted to obtain the cycle times for individual stages of production. The tools employed in this analysis included the stop watch. Average cycle time foretold the current TAKT time (Duggan, 2002) (TAKT refers to the total available time divided by the units on demand during that period of time). In order to facilitate comparisons between various stages of production, a standard cycle time recording system had to be employed (Chou, 2009). However, this standard is hard to reach but cycle times can be recorded using a stopwatch and observing material movement in the machine to determine the appropriate operation that can be time. Pieces produced and the resultant data is recorded. In addition, it is worth noting that it is vital for all machines to do two pieces at a time. Sample numbers for every operation had to be recorded. Since the entire material processing in automated its outputs are expected to be repeatable. Time variations of the cycle times determine the number of operations. Cycle time and other information data on time was integrated into the VSM. 3.4 Value Stream Map VSMs basically exhibit work processes, material processing and information flow. In this project Microsoft Visio was employed to create the current state map. To create a VSM for Michigan Steel Company multiple current state VSMs had to be created and then integrated thereafter. The future state value stream mapping developed multiple scenarios that where used to make the final decision. These included a high level and factory individual VSMs (appendix one & two). Standard VSM symbols were referred to and employed throughout the entire drawing (Rother and Shook, 2003). Data was then inserted into the VSM and the correct names of each production operation. After indicating the correct cycle time for each operation then I calculated the lead cycle time and processing time. 4 Results and Discussions In this section, the information flow, material flow and the current map are discussed. After taking the time studies and collecting information from the company a detailed VSM was created. 4.1 Current Information Flow. For the sole purpose of improving upon the current company’s lead time the current information flow had to be mapped. The channels for information flow illustration were then integrated into the final VSM map. However, improvements can be made to entire system. Information flow improvements can help reduce the lead times. As indicated in the current state map, current information flow from the production control to the different levels of material processing takes place on a weekly basis for planning purposes. Any other communication from the production control level takes place during a problem or changes in the customers’ demands. It might be prudent to recommend a daily operation and communication system that shall improve the regular and standard exchange of information (Chou, 2009). This information can include planning for the future and even daily production updates. This shall ensure the material processing level is always viable and meets the lean procedure recommendations. 4.2 Material Flow. The methods employed during production analysis are aimed at determining the cycle time, changeover time, Uptime (the amount of time the machine is available for processing in percentage), availability time is seconds and the every part every(EPE). These methods are employed at each stage of the five stages of the production material flow (appendix one and two). The entire process begins when Michigan Steel Company receives a weekly fax that places an order. The company then takes a maximum of 5days to place the inventory and bring the raw materials for stamping – the first stage of processing. Here the materials shall take 1 second cycle time each. The changeover time is expected to be 1 hour, uptime to be at 85% and avail of 27600 seconds. The EPE is placed at 2 weeks. The next stage of production is the S. Weld stages. Stage one labeled #1 will take place after a 7.6 days period from the stamping stage. This allows for delivery of orders in the inventory. At this stage of production the method that shall ensure lean measures are employed for maximum production using the limited resources will require an uptime of 100%. The cycle time shall increase to 39 seconds and the avail time shall remain constant as in the stamping stage. From this stage it shall take 1.8 days for the material to reach #2 stage. In the #2 stage, the cycle time increases to 46 seconds and the uptime reduces to 80%. The next two stages shall embark on assembly. Here the steel material shall be assembled to form steel coils. This stage is the most vital of the material processing stage of production. To ensure lean procedures are implemented the cycle time in the #1 and #2 assembly stage shall be at 62 seconds and the 40 seconds respectively. The uptime in both stages is kept at 100%. After this the product is moved for shipment. However, it’s worth noting that contact production control is necessary to ensure that the entire product is coordinated successfully and lead procedures are implemented successfully. 4.3 Reduction of lead time. The current VSM can be seen in the picture. The total cycle time has been reduced significantly and optimally, taking into consideration the quality of the steel. The larges part of the lead time is caused by the assembly line. However, the lead time can be reduced by adjusting the inventory time. These can be done by reducing the time between shifts. Further, ample communication can facilitate the delivery time of the final product to the customer (appendix two). 5 Conclusions To sum it up, it is entirely possible and evident that the processing lead time can be reduced by approximately one week. This means that production processes will take less than a month to complete as opposed to the prior situation. The biggest chunk of this time is eaten by inventory procurements. These take a wide range of time depending entirely on the stage of material processing. A maximum of 2 shifts are put forward by he VSM for implementation. Furthermore, value stream mapping and the drawing of a pictorial illustration of the current value map and future state maps proves its efficiency in analyzing and improving a company’s production and processing (Roudebush, 2005). 6 Appendices 6.1 Appendix One: Current State Map - 6.2 Appendix Two: Future State Map Reference List Chou. (2009). Global perspective for competitive enterprise, economy and ecology proceedings of the 16th ISPE International Conference on Concurrent Engineering. London New York: Springer. Duggan, K. (2002). Creating mixed model value streams: practical lean techniques for building to demand. New York, N.Y: Productivity Press. Rother, M. & Shook, J. (2003). Learning to see: value stream mapping to create value and eliminate muda. Brookline, MA: Lean Enterprise Institute. Roudebush, W. H. (2005). “Think lean construction: Value Stream Mapping (VSM). The Constructive thinker. Construction Contractors Council, pp.5, 6 Tapping, D., Luyster, T. & Shuker, T. (2002). Value stream management : eight steps to planning, mapping, and sustaining lean improvements. New York, N.Y: Productivity. Read More