Reducing Leadtime VSM – Case Study
“the foundry has increased volume and we need to reduce Lead-times, Lower Work-in-Progress and introduce flow on our high volume products”
Current Situation and Background
The growth of the foundry as hit new heights with one customer becoming a key account at over 80% of the volume, with 4 products stepping into the repeaters category for the business. Lead-times are increasing and the SMEs Customer is wanting to raise the volume further whilst also wanting a reduction in leadtime.
First Phase is to analyse the business and understand the current situation from Order Entry through to Customer Delivery.
• Go Look and See the process.
• Process steps – sequence of work.
• Actual operation (VA / NVA)
• Transportation (conveyance)
• Storage (inventory)
• Inspection (quality control)
• Delay (material or process)
• Measurable:- time, distance, quantities.
• Information (process details and issues).
• Improvement Priorities
Analysis and Recommendations
A Value Stream Map was created to ascertain the following;
- Process flow (how it’s made)
- Material (is it push or pull)
- Information flow (what to make and when)
Data Boxes were completed, recording- cycle times, change over times, OEE or Uptime, number of people, process step, etc. All Work-in-Progress within the system was logged and how planning interacted within the process from a people and systems point of view. All rework and subcon loops were mapped.
A complete picture of the Operations Systems Design:
• Demand and Capacity Management
• Inventory Management
• Process Foundations
• Process Stability
The Leadtimes across Wax, Shell, Foundry and Finishing was analysed for opportunities, TAKT Time was calculated, along with Manning and Line Balancing.
Phase 1 – Implementation Priorities
Overall 27 Projects were highlighted for Implementation, some were categorised as “Just Go Do it’s” with a Top 5 prioritised for implementation immediately these include;
• Eliminate Rework
• Wax Capacity and Uptime Improvement
• Shell Capacity Improvement
• Finishing Cell (incorporating One Piece Flow, pull systems)
• Subcon Performance and Commercial Agreements
50% Leadtime Reduction Highlighted
75% Reduction in Rework
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