Lean Manufacturing Application HMC

Die Casting and Machining Shop

Lean Manufacturing

May 30th , 2018

Probabilistic Demand Model

Table of Contents 3

1 2 3

Section-I Section-II Section-III

1. Objective and Scope of 1. Calculation of Effective 1. House of Quality
Application Hours

2. Components Involved in study 2. Forecast of Product Volume

3. Takt Time Calculation

4. Calculation of Number of
Work Stations
Section - I
Objective and Scope
BACKGROUND OF CASE STUDY

Heavy Mechanical Complex (Private) Limited is a leading engineering goods manufacturing enterprise in
Pakistan. HMC Provides services for various industries Defense , Energy Production , Sugar and Cement
Industries

There are few Problems faced by its Casting and Machining Shop over the years are stated as :

1. The idle time for the operator in EDM station of an assembly is long

2. The number of Defective Product is large

3. The time for operator to search for their tools is long

4. The machine used to break down without prior notice

 Objective and Scope of Study
This project aims to study the current problems faced by the company and implement lean manufacturing
tools. The mail objective was to analyze the current manufacturing process then restructure or
recommend a more efficient and effective manufacturing process to the company.

The assembly Line Consists of a

a) Grinding Station ,
b) Milling Station , Turning Station
c) EDM station.

Time study of the Assembly line was done in order to understand the actual performance of each work station
and improvement in companies production was attempted through implementation of Kaizen by improving the
takt time and using the House of Quality Analysis

6
Objective and Scope of Study

In Short The Objectives are :

1. To improve the productivity in the production floor by using time study method.

2. To find the priority issue to be improved based on the customer’s complaint by using House of Quality.

3. To implement 5S in the company’s production floor

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Section - II
Probabilistic Demand
 Calculation of Effective Hours
Effective hours are the total amount of time an operator spends in building a product. When calculating effective hours one
must consider the total time the operator spend in the facility and deduct the time he spend in other activities'. Table bellows
shows the effective hours the project as used for implementing lean manufacturing.

Calculation of Working Days

365 Days a Year
-104 Weekends
-19 Public Holidays
-4 Maintainance
-3 Official Visits
9
235 Days Available to work
Product Volume

Product volume is essential in lean manufacturing because it can help the company to identify the number of product needed to produce in a
single day. The production trend for the past three years was studied and a forecast for the product volume was made
The products produced are divided into four categories
a) Manufacturing
b) Boiler Accessories
c) Sugar Accessories
d) Others

Total number of Products produced in a year on a single assembly line are 2250 .Each unit of Product are divided by 235 days to get the number
of products needed to be produced by a assembly line in a single day. As shown in the table

Products Percentage by Units Divided by 235

Volume
Manufacturing 27.8 625 3
Boiler Accessories 16.66 375 2
Sugar Accessories 27.78 625 3
Others 27.78 625 3
Total 100 2250 11 10
TAKT TIME

Assembly line 1 should be designed that a task is completed at every work station every 39.09 minutes to meet the
requirement of total 11 units per day.

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 No of Work Stations Required
Average Cycle time for for the involved process is as follows

1- Grinding ( 15.03 min)

2- Milling ( 22.15 min)
3- Turning ( 15.11 min)
4- EDM (29.44 min)

It is common practice to apply 85 % rule to calculate the takt time as operators are not able to work at optimum
speed or rate for the entire day. The operator becomes slower and the 85 % rule allows a smoother and more
efficient flow of product .So by multiplying the actual Takt time by 0.85 % we get the new Takt time of 33.23 min
for the assembly line

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 No of Workstations required
No of work stations required in grinding process

Grinding Process
Units 11
Effective Hours 430
Cycle Time 15.03
Takt Time 33.23
Assembly TIme 11.13
Number of work Stations 0.33

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 No of Workstations required
No of work stations required in milling process

Milling Process
Units 11
Effective Hours 430
Cycle Time 22.15
Takt Time 33.23
Assembly Time 15.11
Number of work Stations 0.45

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 No of Workstations required
No of work stations required in Turning process

Turning Process
Units 11
Effective Hours 430
Cycle Time 15.03
Takt Time 33.23
Assembly TIme 5.01
Number of work Stations 0.15

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 No of Workstations required

No of work stations required in EDM process

EDM Process
Units 11
Effective Hours 430
Cycle Time 29.44
Takt Time 33.23
Assembly TIme 3.39
Number of work Stations 0.10

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Section - III
House of Quality
No of Workstations required

18
House of Quality

Now the Same casting shop has received an order for production of a mold with the following specification
a) High Precision
b) Light weight
c) Produces smooth surface
d) Produce 100,000 products before break down
e) Heat Quickly
f) Cool Down Quickly
g) Does not burn when touched

Customer is asked to rate the list of requirements on the scale of 1 to 10 with 10 being the most
important.
Then a competitive assessment is conducted. On a scale of 1 – 5 ( 5 being the best) customer evaluate our
mould against competitors mould which shows that our company excels at producing moulds that can
make 100,000 products but fail when heating and cooling down quickly is involved from the feed back
customer competitive assessment table is made
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Next in order to change the mould design to better satisfy customer requirement, HMC needs to translate those
requirements to measurable design Characteristics The list of design characteristics are shown in our relation ship
matrix

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Now product design characteristics are interlinked using
the trade of matrix

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Complete House of Quality

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Reorder Point with Variable Demand
Reorder Point with Variable Demand

R  d L  Z d L

where:
R  reorder point

d  average daily demand

L  lead time
 d  the standard deviation of daily demand

Z  number of standard deviations correspond ing

to service level probability

Z d L  safety stock
Reorder Point with Variable Demand Example

• For following data, determine reorder point and safety stock

for service level of 95%.

d  30 yd per day
L  10 days
d  5 yd per day
For 95% service level, Z  1.65 (Table A -1, appendix A )

R  d L  Zd L  30(10)  (1.65)(5)( 10 )  300  26.1

 326.1 yd
Safety stock is second term in reorder point formula : 26.1.
Reorder Point with Variable Lead Time

• For constant demand and variable lead time:

R  d L  Zd L

where:
d  constant daily demand
L  average lead time
 L  standard deviation of lead time
d L  standard deviation of demand during lead time
Zd L  safety stock
Reorder Point with Variable Lead Time Example

• Carpet Discount Store:

d  30 yd per day

L  10 days
 L  3 days

Z  1.65 for a 95% service level

R  d L  Zd L  (30)(10)  (1.65)(30)(3)  300 148.5  448.5 yd
Reorder Point
Variable Demand and Lead Time
• When both demand and lead time are variable:
2 2 2
R  d L  Z ( d ) L  ( L ) d

where:
d  average daily demand
L  average lead time

2 2 2
( d ) L  ( L) d  standard deviation of demand during lead time

2 2 2
Z ( d ) L  ( L) d  safety stock
Reorder Point
Variable Demand and Lead Time Example
• Carpet Discount Store:
d  30 yd per day
 d  5 yd per day
L  10 days
 L  3 days
Z  1.65 for 95% service level

2 2 2
R  d L  Z ( d ) L  ( L) d

 (30)(10)  (1.65) (5)(5)(10)  (3)(3)(30)(30)

 300  150.8
 450.8 yds