sapan report

8/8/2019 Sapan Report

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1. EXECUTIVE SUMMARY

1.1 TITLE:

A project on Study of Buffer allocation system and visualization of waste through Valuestream mapping in Heat Treatment Department.

1.2 OBJECTIVE:

Primary objective:

Visualizing the waste caused due to buffer allocation system using VSM.

Secondary objective:

Revisit the current buffer allocation system and find out method to allocate buffer

which will reduce the waste.

Study the flow of the process and preparing dedicated flows for the concerned

channels, which will help in implementation of kanban. Study the communication between process stations.

1.3 SCOPE:

Project work is limited to shared operations area as far as VSM is concerned.

Communication, buffer allocation systems are scoped to heat treatment department.

Components for channels T2 & T3 are under the scope of the project (Customers: Tata

Motors Ltd, John Deere, Escort, Volvo, Swaraj Mazda, Spicer).

1.4 RESEARCH METHODOLOGY

Research is a process of investigation, an examination of a subject from different points ofview. In this project we will be using Value Stream mapping as our research methodology.

Value Stream Mapping is simply mapping on paper (often in pencil) the various information

and processing steps to get a product from idea or raw material to finished product and to the

customer.

Data Collection Method Used is observations. Observation involves recording the behavioral

patterns of people, objects and events in a systematic manner.

1.5 FINDINGS:

After collecting Data and mapping the value stream, the non value added times and buffer

times came in front. Reasons behind these Non Value Added Times are also digged out. After

care full study of allocation system, two proposals for buffer allocation have been made. (i.e.channel wise & Furnace Wise)

Study of flow of components in the department resulted into a suggestion of creating dedicated

flow for family of products which will help in implementing kan ban & single piece flow.

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1.6 CONCLUSION:

Value stream mapping proved to be a power full tool in identifying and eliminating

wastes in the current system. After drawing and building current state VSM, we have to buildFuture State VSM. It is this Future State which highlights the waste in the 'system' that can be

eliminated or reduced. By seeing the amount of 'waste' the team can identify opportunities to

improve. The next step is to develop the 'Future State Implementation Plan'. Designing aFuture State requires more art, engineering and strategy than Present State mapping.

1.7 LIMITATION:

The study is limited to components of channel T2 & T3.

Generalization should be done to apply the flow throughout the entire range of products.

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2. OBJECTIVE AND SCOPE

2.1 AIM:

To study the current system of buffer placing, communication and flow of the process in theshared operations.

2.2 OBJECTIVE:

Primary objective:

Visualizing the waste caused due to buffer allocation system using VSM.

Secondary objective:

Revisit the current buffer allocation system and find out method to allocate buffer

which will reduce the waste. Study the flow of the process and preparing dedicated flows for the concerned

channels, which will help in implementation of kanban.

Study the communication between process stations.

2.3 SCOPE:

Project work is limited to shared operations area as far as VSM is concerned.

Communication, buffer allocation systems are scoped to heat treatment department.

Components for channels T2 & T3 are under the scope of the project (Customers: Tata

Motors Ltd, John Deere, Escort, Volvo, Swaraj Mazda, Spicer).

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Scope of the project

4

Supplier1

Supplier2

Supplier3

Supplier4

Supplier5

Receiving&

Inspection

Washing

HeatTreatm

ent

Face&OD

Grinding

Channels

Custome

rs

Fig1:

scope

oftheprojectwork


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3. COMPANY PROFILE

3.1 The SKF Group

Svenska Kullager Fabriken i.e. SKF was founded by Sven Wingquist in 1907 when he got thepatent for self aligning bearing in Sweden. This was followed by patent in 12 other countries.

By the year 1910 company had a base in United Kingdom with employee strength of 325 andmanufacturing operations in multiple countries (around 32).By the time it when it was 1927the company began its trading operations in India at Kolkata with East India Company.

By the dawn of the year 1965 it started a manufacturing factory at Pune. In the year 1989 a

factory at Bangalore was established with a purpose of manufacture of SDGBB.A decade later

SKF India decided it was time to diversify so in 1999 it entered into manufacturing seals,Half a decade later it felt a need to change its name and thus was renamed as SKF India.

SKF Group is the leading global supplier of products, solutions and services within rolling

bearings, seals, mechatronics, services and lubrication systems. Services include technicalsupport, maintenance services, condition monitoring and training.

Vision:-

To equip the world with SKF knowledgeMission:-To be the preferred company...

For customers, distributors and suppliers:

delivering industry-leading, high value products, services and knowledge- engineered

solutions;

For employees:

creating a satisfying work environment where efforts are recognized, ideas valued, andindividual rights respected;

For shareholders:

delivering shareholder value through sustainable earnings growth.

Values:-

The values that company stresses on while achieving its vision are High Ethics, Empowermentof people and company, Openness and most important thing is teamwork.

Five technology platforms

SKF groups its technologies in five platforms: Bearings and units, Seals, Mechatronics,

Services, and Lubrication Systems. By utilizing capabilities from all or some of the platforms,SKF develops tailor-made offers for each customer segment, helping customers improve

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performance, reduce energy use and lower total costs, while bringing increased added value to

SKF.

Three divisions, 40 segmentsSKF does business mainly through three divisions: Industrial Division and Service Division,servicing industrial original equipment manufacturers (OEMs) and aftermarket customers

respectively, and Automotive Division, servicing automotive OEMs and aftermarket

customers. SKF operates in around 40 customer segments, whereof examples include cars and

light trucks, wind energy, railway, machine tool, medical, food and beverage and paperindustries.

Financial targets

SKF's long-term financial targets are to have an operating margin level of 12%, annual sales

growth in local currencies of 6-8% and a return on capital employed of 24%.

Research and development

Technical development, quality and marketing have been in focus at SKF since the very start.

The Group's efforts in research and development have resulted in numerous innovations,forming bases for new standards, products and solutions in the bearing world. In 2009, the

number of first filings of patent applications was 218.

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by striving for an overall positive environmental impact. Beyond Zero influences SKF's

development of products and solutions.

CO2

Carbon dioxide (CO2) is by far the most significant greenhouse gas generated as a result ofSKF's operations. Therefore, the Group has set a target to reduce CO2 emissions by a

minimum of 5% annually, irrespective of production volume. In 2009, the reduction was 18%,

compared with reduction of 9.1% in 2008 and 2.2% in 2007.

3.4 Six sigma

SKF Six Sigma is a continuous improvement program within SKF that targets waste and

defects in all business processes. SKF Six Sigma projects are run by extensivelytrained Black Belts and Green Belts, where Black Belts are required to run two projects a year

and Green Belts one project a year. Within the SKF Six Sigma program are a number of tools

and methodologies ranging from traditional DMAIC and Design for Six Sigma to Lean and

other waste reducing methodologies. The foundations for SKF Six Sigma improvements arethat they are fact based and sustainable and contribute

to the business objectives.

Design for Six Sigma (DfSS)

A methodology which focuses on developing new products and services to the market

With optimal performance levels.

Lean Six Sigma

A methodology which combines tools from both Lean Manufacturing and Six Sigma.

Lean focuses on speed and waste, Six Sigma on variation and quality the resultis better quality faster.

Six Sigma for GrowthA customer focused approach and targets improvements in the growth areas suchas marketing, sales and distribution. Transactional Six Sigma Focuses on people processes

such as service, sales and human resources.

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3.5 Products

Mechatronics

Power Transmission Products

Seals Product

SKF Lubrication Systems

Bearing Housing and Accessories

Condition Monitoring Products

Hydraulic Seals

Industrial Shaft Seals

Maintenance and Lubrication Products Plain Bearings

Rolling Bearings

3.6 Milestones

1961-Company was incorporated under the name 'Associated Bearing Company'.

1965-Company commenced production of its first factory located at Chinchwad, Pune.

1987-Company has rechristened as SKF Bearing India. Company proposed to set up a

new manufacturing unit for manufacture of 9.0 million nos. of ball bearings at

Bommasandra in Karnataka. SKF of Sweden was the technical collaborators of theproject.

1989-Company set up manufacturing unit for SDGBB in Bangalore.

1990- Companys Chinchwad unit received a license to manufacture 22.35 million

numbers of ball and roller bearings per annum. Its Bommasandra unit was licensed tomanufacture 26.4 million numbers of ball and roller bearings per annum.

1995-Company forayed international markets namely U.S.A., Italy, France, Singapore,

Argentina etc.

1997-Company commenced up gradation of Pune plant with capital outlay of Rs.130

crore.

1999-SKF Bearings India inked an agreement with Telco to supply hub bearings for itslatest model Tata Indica. Company installed an electronic machine reliability

inspection system called `Marlin', to monitor the condition of bearings in industrial

processes.

2002- SKF became the first bearing company in India to obtain ISO/TS-16949 for the

Automotive Business Unit. Company established SKF Center for learning.

2004-Company acquired Vibration Engineer and Consultants-a private limited

company. The name of the company was changed to 'SKF India'. Companyinaugurated SKF Application Development Center.

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3.7 Awards and recognition

SKF India was awarded CNBC Asias India Business Leader Award for TalentManagement.

Company was honored with Lean & Six Sigma Excellence Award by Symbiosis

Centre for Management & Human Resource Development.

Company bagged Six Sigma Award at CII 5th National Convention on Achieving

Business Excellence for Global Competitiveness.

Company received Regional Quality Circle competition award held by ToyotaKirloskar Suppliers Association.

3.8 Future plans

In Future, SKF India plans to increase capacity of its Haridwar, Uttarkhand to manufacturebearings. The plant is expected to become operational by first the quarter of 2010. The total

capital investment of this plant will be around Rs. 1,500 million and will have a manufacturing

capacity of 48 million bearings. The new facility will strengthen Companys leadershipposition in the domestic bearing market.

SKF India's associate company, SKF Technologies (India) Pvt. Ltd. a wholly ownedsubsidiary of AB SKF, Sweden, offers customers complete sealing solutions based on

our leading edge technology

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3.9 SNAPSHOT:

Date of Establishment: 1961Revenue: 356.779 ( USD in Millions )

Market Cap: 24573.362708 ( Rs. in Millions )

Corporate Address: Mahatma Gandhi Memorial Building,Netaji Subhash Road,Mumbai 400002, Maharashtra

Management Details Chairperson: - Kamlesh C Mehra

Managing director:- Rakesh MakhijaDirectors :- Darius C Shroff, Giuseppe Donato, Henrik Lange, Kamlesh C Mehra, Narendra J

Jhaveri, Phil Knights, Pradeep Bhandari, R Makhija, Rakesh Makhija,

Shishir Joshipura, Tryggve Sthen, Vartan Vartanian

Business Operation: BearingsBackground SKF India incorporated in 1961 is engaged in manufacturing bearings, seals,

solutions and other related products for a wide range of industry application. The company is a

subsidiary of SKF Group, Sweden. The group was founded in 1907 and has presence 130countries; it owns 103 factories across 24 countries and has a workforce of 40,000 employees.

Company manufactures ball and roller bearing components

Financials Total Income: - Rs. 15972.1 Million (year ending Dec 2009)Net Profit: - Rs. 942.5 Million ( year ending Dec 2009)

Company Secretary: - Pradeep Bhandari

Auditors BSR & Associates

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3.10 Market share of SKF India Ltd:

Company Sales

(Rs.Million)

Current

Price

Change

(%)

P/E

Ratio

Market

Cap.(Rs.Million)

52-Week

High/Low

SKF India15709.30 467.40 -1.38 19.99 24647.19 504/230

Timken India3191.24 148.90 -1.72 26.31 9490.12 156/72

FAG Bearings7976.90 565.45 -1.04 12.68 9396.24 680/401

NRB Bearings2907.36 89.45 -0.11 17.76 4334.86 102/41

ABC Bearings1338.60 123.05 0.49 6.92 1421.23 129/35

Bimetal Bearings1190.73 265.00 -1.30 11.34 1013.63 298/146

Austin Engg. 816.69 95.60 6.99 4.71 332.48 116/43

Deccan Bearings46.21 29.70 4.58 196.50 64.85 30/16

Asian Bearing142.33 1.45 0.00 0.00 21.81 0/0

Table1Source: shine.com

Fig2 : segment wise net sales5

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3.11 SHARED OPERATIONS:

For a component, shared operations are the very first step in the factory.

It involves heat treatment and the Face & OD Grinding processes for the components.

Factory manufactures 183 types of bearings in this plant, each containing inner & outer Rings.All this components require hardening, which is done in heat treatment dept.

Only 8 furnaces are there to cater the requirements of the 18 channels producing bearings.

Factory is divided into 2 sections DGBB (Deep Groove Ball Bearing) & TRB (Taper RollerBearing); which are further divided into channels to produce bearings of certain range of bore

and strength.

Channels contain operations like groove grinding, ball filling, washing, greasing, inspectionetc.(in some cases F&OD is also done at channels.)

Shared operations should never be allowed to become a bottleneck; therefore shared

operations should have more capacity than needed for serving the involved channels.

For good visualization buffers for next operations in the involved channels shall be locatedwhere the shared operations are located.

The analysis of the buffer status is visual (preferably in webcam mode if needed) and done by

the persons in charge of physical flow for shared operations (forklift drivers).Shared operations sequence prioritization is based on

Sequence list from all involved channels

All the involved channels previous operations buffers.

Buffer after shared operations.

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14

Fig

3:Enti r

e

supply

chain

an

d

Shared

operation

s

asa

vita

lpartofi t


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3.12 HEAT TREATMENT:

Heat treatment is a hardening operation, which is very important considering the life

and strength of the product.Each & every type of components has to undergo hardening before it goes through further

steps of manufacturing. HT has 8 furnaces (Shaker, Roller, Killick, Birlec, Castlink,

Aichelin, Shoei, and Simplicity). Each component is suitable to go to specific furnaceaccording to dimension and other technical constraints.

Each furnace has zones like: heating zone, quenching conveyor, washing conveyor,

tempering zone.

Super-cooliSuper-cooliFIG 4: HARDENING PROCESS AT FURNACE.6

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4. RESEARCH METHODOLOGY

4.1 Research

Research is a process of investigation, an examination of a subject from differentpoints of view. Its not just a trip to the library to pick up a stack of materials, or picking

the first five hits from a computer search. Research is a hunt for the truth. It is getting toknow a subject by reading up on it, reflecting, playing with the ideas, choosing the areas

that interest you and following up on them. Research is the way you educate yourself.Research can be defined as the search for knowledge or any systematic investigation to

establish facts. The primary purpose for applied research (as opposed to basic research) isdiscovering, interpreting, and the development of methods and systems for the

advancement of human knowledge on a wide variety of scientific matters of our world and

the universe. Research can use the scientific method, but need not do so.

Scientific research relies on the application of the scientific method, a harnessing ofcuriosity. This research provides scientific information and theories for the explanation ofthe nature and the properties of the world around us. It makes practical applications

possible. Scientific research is funded by public authorities, by charitable organizations

and by private groups, including many companies. Scientific research can be subdividedinto different classifications according to their academic and application disciplines.

Artistic research, also seen as 'practice-based research', can take form when creative

works are considered both the research and the object of research itself. It is the debatablebody of thought which offers an alternative to purely scientific methods in research in its

search for knowledge and truth.

The term research is also used to describe an entire collection of information about aparticular subject

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Fig 5: research process.3

As an ethnographic research method, observation seems to have no specific beginning.While some researchers found indications of its use in ancient times, others have pointed

to the late nineteenth and early twentieth centuries, when anthropologists starting

"collecting data firsthand.

Describing it as the "bedrock source of human knowledge" about the "social and natural

world," Adler and Adler (1994) stated that Aristotle used observational techniques

botanical studies on tile Island of Lesbos and that Auguste Comte, the father of sociology,listed observation as one of the "four core research methods"

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4.2 Data collection:

Data collection is a term used to describe a process of preparing and collecting data - forexample as part of a process improvement or similar project. The purpose of data

collection is to obtain information to keep on record, to make decisions about important

issues, to pass information on to others. Primarily, data is collected to provide informationregarding a specific topic

In primary data collection, you collect the data yourself using methods such as interviews and

questionnaires. The key point here is that the data you collect is unique to you and your

research and, until you publish, no one else has access to it.

There are many methods of collecting primary data and the main methods include:

questionnaires

interviews

focus group interviews

observation

case-studies

diaries

critical incidents

Portfolios.

In this project, we have used observation as method of data collection.

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4.2.1 Observation

Definitions of observation per se are difficult to find in the literature. Gorman and Clayton

define observation studies as those that "involve the systematic recording of observablephenomena or behavior in a natural setting" .Other authors define observation within thebroader context of ethnography or the narrower one of participation observation. What is

consistent in the definitions, however, is the need to study and understand people within

their natural environment.

Observation involves recording the behavioral patterns of people, objects and events ina systematic manner. Observational methods may be:

structured or unstructured

disguised or undisguised

natural or contrived personal

mechanical

non-participant

Participant, with the participant taking a number of different roles.

4.4 Roles of Observer

The role of the participant observer is not simple. There are different ways of classifying

the role:

Researcher as employee. Researcher as an explicit role.

Interrupted involvement.

Observation alone.

Choice of roles

The role adopted depends on the following:

Purpose of the research: Does the research require continued longitudinal involvement

(long period of time), or will in-depth interviews, for example, conducted over time

give the type of insights required? Cost of the research: To what extent can the researcher afford to be committed for

extended periods of time? Are there additional costs such as training?

The extent to which access can be gained: Gaining access where the role of the

researcher is either explicit or covert can be difficult, and may take time. The extent to which the researcher would be comfortable in the role: If the researcher

intends to keep his identity concealed, will he or she also feel able to develop the type

of trusting relationships that are important? What are the ethical issues?

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The amount of time the researcher has at his disposal: Some methods involve a

considerable amount of time. If time is a problem alternate approaches will have to be

sought

4.5 Research methodology in this project:

In this project, value stream mapping is used as research tool. Value stream mapping is a leanmanufacturing technique used to analyze the flow of materials and information currently

required to bring a product or service to a consumer. At Toyota, where the technique

originated, it is known as "material and information flow mapping" .It can be used in anyprocess that needs an improvement.

Value stream mapping is a helpful method that can be used in Lean environments to identify

opportunities for improvement in lead time.Although value stream mapping is often associated with manufacturing, it is also used in

logistics, supply chain, service related industries, healthcare, software development, andproduct development

Seven value stream mapping tools are:

Process Activity Mapping

Supply chain responsiveness matrix

Product Variety Funnel

Quality filter mapping

Forrester effect mapping

Decision point analysis

Overall Structure Maps

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4.5 VALUE STREAM MAPPING

Lean is about doing more with less: Less time, inventory, space, people, and money. Leanis about speed and getting it right the first time.

Lean Manufacturing is "A systematic approach to identifying and eliminating waste

through continuous improvement by flowing the product at the demand of the customer."

Fig 6: lean manufacturing, a overview.4

Value Stream Mapping is simply mapping on paper (often in pencil) the various

information and processing steps to get a product from idea or raw material to finishedproduct and to the customer.

Value Stream Maps should focus on the product itself, following it from beginning to endand including the information that needs to flow to various departments as the productsmoves through the process.

Placing all of this on paper in front of you enables you to see where the waste is. Every

system has some form of waste. Even system which has implemented lean manufacturingprinciples can be improved. One small example of this is documentation that takes time to

complete but goes nowhere. Another example is more movement of product than

necessary.

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The Value Stream Mapping enables seeing where the long lead times come from when the

value added time is often a few minutes or hours. For example, if the lead time to produce

a product and deliver to the customer is 7 days, but the actual time it takes to produce the

product is 28 minutes, VSM will enable seeing the picture of the non value time.It is important after developing the value stream map to involve many employees, both

management and workers, to eliminate the non value added activities.

The VSM module is one of the first in the Lean Manufacturing course as the big picturemust be seen first before attempting to develop a new Value Stream with less waste.

The value systems domain is involved in the permanent creation of a new culture by

creating new languages and new descriptions and prescriptions about the world through apermanent debate between carriers of different world views, traditions and cultures.

Changes in values in the environment in which the work system in the innovation domain

is embedded are sensed and transformed into new products, services and processes. Thework system is involved in the discovery and the creation of the added-value of the future.

Innovation is not thought about in a vacuum. Again, the split between thinking and doing,between those who develop a concept and those who have to implement it is in general

counterproductive. Innovation is by definition action-research.

Fig 7: Value stream, waste elimination approach.1

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5 . DATA PRESENTATION

5.1 MAPPING THE CURRENT STATE:

Whenever there is a product for a customer, there is a value stream. The challenge lies inseeing it.2

The key to creating an excellent current state VSM is to document what you actually see with

your own eyes. We are not interested in how the process is supposed to work, or was designedto work.

Throughout this project, I used VSM as a research methodology. Observation andcontinuous noting of facts helped a lot to map the current state & visualise the waste in the

shared operations area.Material movement charts is the tool used for visualising the Non Value Added Material

Movements and the effect of it on the complexity of the process.Channel T2 & T3 components as a limited scope are observed while they are in the

concerned area and getting processed.

Value Stream Mapping enables a company to identify and eliminate waste, thereby

streamlining work processes, cutting lead times, reducing costs and increasing quality.

Through Value Stream Mapping, a team of employees can map the current state fromcustomer back to raw material including all steps, both value-added and non-value-added,

and develop a future state vision to act as a blueprint for Lean activities. The Future State

often represents a significant change compared to the way the company currently operates.

The VSM team will develop an implementation strategy to make the Future State a reality.The most urgent needs will be addressed first, and can typically be accomplished in a very

short time frame with the appropriate resources applied.

The Value Stream Mapping Event will identify opportunities to remove waste. The ValueStream Mapping Team will develop the implementation plan, then immediately select and

implement one or more Kaizen Events, including: 5S / Workplace Organization Quick Changeover

Cellular / Flow Manufacturing Pull / Kanban Systems Total Productive Maintenance

This approach maintains the momentum and excitement of the team, as well as ensures

buy-in to the future state plan. Typically, the team members that developed the Value

Stream Maps are utilized for the implementation of the Kaizen Event(s).

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Benefits of Value Stream Mapping

See the flow of your value stream and wastes in the flow View all products from a system perspective

Understanding both material and information flows of your value stream

Draw a blueprint for Lean transformationthe Future State Map Prioritize activities needed to achieve the Future State

Symbols used: 2

: Inventory accumulated

: Process / operation

: Transport.

: Information Flow.

C.T. : Cycle time.

C/O : Change-over time.

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Fig9:CU

RREN

TS

TATEFOR387-IN

NE

R(CH

ANNEL-T3)


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Fig11:

CURRENT

STATEFOR3

020

7-OUTER

(CHANNE

LT2)


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Fig

12:MATERIAL

MOVEM

ENTCHA

RTFOR382-IN

NE

R(CHAN

NEL

T3)


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Fig13:M

ATER

IALMOVEM

ENTCHA

RTFOR387-OUT

ER


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Fig14:F

ISHBONE

DIAGRAM

FORL

ONG

LEA

D

TIMEI N

SHARED

OPERATI O

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6 . OBSERVATIONS

Traceability of soft material is a problem. The entire soft buffer for the type is not

located at same place.

Operators dont know where the whole lot of soft buffer is placed.

Allocation of soft and hard buffers for some channels is not sufficient.

Heat treatment and grinding operations are not done continuously when taken; i.e.lot is broken for some reason and hence the waiting time of the material is

increasing.

Information does not flow operation wise; it is centrally planned and instructionsgiven to operators.

Planning of furnaces and Face and OD machines is done daily. Buffers are taken daily in the morning; hence the buffer arrived in the day is

realised in the next morning; waiting time of it increases.

Frequent and large stop times for F&OD machines.(for change over and

maintenance)

Out put of furnaces is accumulated near the furnace till end of shift. Material ismoved to next station at end of shift hence the lot gets separated.

No material movement in third shift; hence large material to be moved in themorning creates confusion.

Space in F&OD is not distributed channel wise; hence material handler has to

decide where to keep the buffer.

Unnecessary movement of pallets happens in F&OD. i.e. same material is handledtwice to clear up the space.

No communication channel is there to check the run time status of the furnace and

the material arrived from the receiving inspection.

Accountability of the material movement is problem; some body should be wholly

responsible for the movement.

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7 . ANALYSIS

To analyze something is to ask what that something means. It is to ask how something

does what it does or why it is as it is. Analysis is the kind of thinking you will most often

be asked to do in your work life and in other parts of life; it is not the rarefied andexclusive province of scholars and intellectuals. It is in fact one of the most common of

our mental activities.

Analysis of data is a process of inspecting, cleaning, transforming, and modeling data withthe goal of highlighting useful information, suggesting conclusions, and supporting

decision making. Data analysis has multiple facets and approaches, encompassing diverse

techniques under a variety of names, in different business, science, and social sciencedomains.

7.1 Revisit Space allocation for soft buffer and loop lot size:

Currently the shared operations dept keeps 2 days buffer to cater the channels.As a challenge to this assumption of keeping 2 days buffer, it is suggestible to try out and

evaluate other options of lesser loop lot size. If loop lot size reduces, the buffer

requirements will automatically reduce and space can be easily distributed. As we caneasily determine the factors governing loop lot size and buffer requirements:

Optimum batch size (order size).

Lead time (process time + waiting time + stop time + queue time).

Set up times.

Supplier capacity. Etc.

We will check the effect of reduced loop lot size on output.

Consider a month of 30 days=90 shifts.Current loop lot size= 2 days= 6 shifts. (for 100% channel efficiency)

That means, in a month, the type changes 15 times on a channel.

For example say that, 1 setting= 4 hours.

So, time taken for settings in a month= 60 hrs.Value added time in a month= (90x8)-60

=660 hr.

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Now consider following cases:

Case no Loop lot size(shifts) No of settings

in month

Time for setting

(hr)

VA time in a

month(hr)

1 6 15 4 660

2 4 22 4 632

2 6 15 2 690

4 4 22 2 676

It is clear from the table that reducing loop lot size has negative impact on out put.

On the other hand if setting time is reduced, same loop lot size gives better output.So it is not advisable to reduce loop lot size until setting time is reduced.

7.2 Revisit of the current allocation of space to buffer:

It has been noted in current state VSM that, the space in HT dept is not sufficient to store 2days soft buffer for all channels. Due to which the entire lot of soft buffer cant be stored

at one place and thus creates the separation of same type leading to high lead time in

shared operations area.

To analyze this fact, I collected the data about output of all channels, and the currentallocation of space to the buffer. As discussed earlier, it is required to store 2 days channel

output. The following table shows the required and currently allocated space in number ofpallets. It can be clearly seen that there is gap between the current and required spaceallocation. It calls for rearrangement of space channel wise.

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Following table shows the required and allotted space for soft buffers of all channels .

ChannelIR OR

Current Required Current Required

T1(S + R) 6 9 8 16

T2 8 11 15 16

T3 16 16 10 28

T4 - 22 - 35

T5 - 24 - 36

T6 16 11 16 17

T7 16 17 16 22

HUB - 7 16 17CH1 6 4 8 7

CH2 8 6 10 15

CH3 10 7 16 19

CH4 16 14 15 35

CH5 16 12 15 36

CH6 3 5 3 9

CH7 3 1 3 2

TOTAL 124 166 151 310Table 2: review of space allocation

This is the first hand data collected about the space allocation.

It shows that allocation of space for some channels is not sufficient. And this is the reasonwhy operator cant find all soft buffers for heat treatment; As a result the batch getsseparated and the NVA time increases increasing setting time in F&OD dept.

Total requirement of space is 476 pallets in HT.

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7.3 Revisit of the flow of the components through shared operations:

30207 Outer

30207 inner

382 outer

387 inner

Fig 15: Review of flow of components

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Aichelin

Castlink

Birlec

Roller

Killick

Shoei

Simplicity

Shaker

S 40

Gard 1601

Gard 1016

709-1186

DDS 544

SLDP 166

Cl46 1600

Cl3BG 169

CL3BG

170

OD cell 2

OD cell 1


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Figure shows the flow of components through shared operations from stage to stage. It isnoted that although there are constraints to the rings for some machines and furnace, the flow

for a type is not fixed; it is dependent upon the availability of the concerned machine at that

time and the criticality of the requirement.Shared operations dept, on daily basis plans the furnaces and machines for the types to be

taken in coming three shifts.

Furnaces and machines have some technical constraints for the types to grind or heat treat.Priority of the types is affected by various factors. Daily planning gives rise to centralized

communication and sometimes channel stoppage due to miss planning.

Currently channel downtime is 2.8% due to short supply from shared operations.

Planning is manual & scheduling dependent upon individual judgment.

Communication in heat treatment dept is person dependent. When soft buffer arrived fromReceiving & Inspection, there is no signal passed from there. Material remains unnoticed until

stack is taken physically next morning.This person dependent system adds to buffer time. It quite noticeable that there should be

some visual communication system which will bring ease to the parties involved and any

unavailability will be noticed very fast. The new interaction system should build a platformfor kanban and pull system. Currently production system is Push at some places and Pull at

some places.

So it calls for the through out Pull System which will give base for JIT and kanban.Once the flows will be fixed and dedicated; it will be a independent system and can be

practiced for all the channels.

7.4 Revisit of communication system:

Currently communication takes place orally and through telephone. Furnace operators

write daily log book but it is not used for the real-time reference.When material comes from R&I ; there is no such message passed to shared operations

about issue of the material.

Centralized MRP & Production planning issues monthly schedule; each dept plans thereactivities accordingly but no internal official communication about the issue of material

happens.

That is the reason why each morning we have to take the stock physically and preparedaily buffer status.

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8. SUGGESTIONS AND RECOMMENDATIONS

8.1 Allocation of soft buffer in the available space in HT Dept.

Considering the 2 days requirements of channels and soft buffer quantity required to be

stored in heat treatment dept, there are two proposals to store the buffer.

8.1.1 Channel wise allocation of soft buffer:

Requirements of buffer quantity show that it is not possible to store the pallets on

marked space only. There is need to look for more space and locations to store the

pallets.Channel wise allocation of soft buffer calls for the space near simplicity and shoei

furnace to be marked for some channels. Space behind aichelin should be markedfor hard buffer. Currently these spaces are being used but they are not marked, so

material handler has to take his own decision about where to put what.Figure shows a allocation plan of soft buffer, channel wise.

All channels are provided with sufficient space in HT for soft buffer. The no of

pallets are decided considering the highest output in terms of no of boxes from achannel for a type. This gives the worst case requirement for that channel. In the

plan the space is allocated channel wise and considering the maximum

requirements of the channels.The preferred furnaces are also considered in this plan, so that the movement of

material will be the minimum and traffic of pallets will be smooth lined.

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Fig 16: proposed allocation of soft buffer, channel wise.

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8.1.2 Furnace wise allocation of soft buffer:

Another option to store soft buffer is to allocate it furnace wise. All material which will go on

a furnace will be stored same space. Marked space can be easily allocated furnace wise.All types were checked for the preferred furnaces and alternatives available for it.

Preference list is decided depending upon the output of furnace for each type and the

maximum output type from each channel is proffered to go on which furnace for heattreatment.

Suppose 6305 from DGBB channel 2 is the type which is having maximum output in terms of

number of boxes per day. So such types from all channels are considered for the preferredfurnaces. All the types furnaces are provided with preferred loading types and the proposal is

prepared to store the buffer so that operator has to see to one region only for the work to be

done. If material is available there, it s his job to get it done. And if the area is empty, it

stimulates a signal to the supervisor to call next material.The challenge in this task is to arrange the buffer in such a way that the movement will be the

minimum. To resolve this issue, the material is allocated near to furnace and only shoei

furnace is provided with the space at a reasonable distance.Figure shows the detailed placing of buffers furnace wise.

Inventory to be stored gets reduced by 100 pallets using this

layout

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Fig 17: furnace wise allocation of soft buffer.

8.2 Flow of material in shared operations:

As we have seen that, although there are constraints for components to go on furnaces and

machines; still the flow of material is not smooth and predefined. Daily planning and

central controlling of shared operations gives rise to channel stoppage and disturbances.If we decide the flow of material for a channel and dedicate the furnaces and machines to

particular types or channels; there will be ease in information flow and communication.

Visual mapping will be easy and any shortages will be communicated very fast.

The operator will have to look for the buffer at a certain location only and he will have tokeep the out put at certain out put only. Supplier- customer chain will be built inside the

department and no mans land will be covered.

Accountability of the process will increase and the flow will be smooth lined.It will be a platform to implement kanban if the dedicated flow of information In the

reverse direction happens. Following are the charts showing the preferred components on

each machine and furnace.

Rings. Furnace

Taper Inner rings OD > 42mm to 72 mm

Roller ,

Simplicity

Taper & DGBB Inner rings OD < 42mm Shaker, Killick

All HBU Outers ( Due to size & Shape ) Roller

Taper Inner rings OD > 42mm to 72 mm

Castlink ,

Birlec

Taper & DGBB Inner rings OD > 72mm Aichelin ,Shoie

Thin wall Outer types above 80mm OD ( D/t more

than 13 ) Aichelin

Outer rings OD > 80mm Aichelin

Outer rings OD < 80mm to 47 mm

Castlink ,

Birlec

Outer rings OD < 47mm Shaker, Killick

Customer Specific requirementsSpecifiedFurnace

.

Table 3: Furnace allocation

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Rings Face Machine

Channel T3,T4,T5 & T6 components DDS Cell

Channel T1-S,T1-R,HUB1T-IR, T2 components DDS 544

HUB1T,Ch03, Ch01 (62mm) Outers & Ch05 IR Old Gardner

HBU, Ch05 Outers New Gardner

T7,HBU & Specified IR of T2 & T6 S-40

Ch01 Outer, Ch06,07 components SLDP

Rings OD Machine

Channel T3, T4, T5,T6 & Ch05 Outers OD Cell 1HBU, Ch03, T2 & up to 100mm OD Outers of Ch05 OD Cell 2

HUB1T,Ch01 Outers, T2 IR CL 46 170

T1-S, T1-R & T7 Outers CL 46 1600

Ch06,07 all components CL3BG

Table 4: Grinding Machine Allocation

Depending upon this, there can be cells build and information can flow between these cells

rather than centrally.

Kanban cards can be implemented if such cells are implemented.

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AICHELIN

DDSC

ELL

OD

CELL1


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Empty Boxes return.

Boxes in

From previousStage.

Rack

Example of rack system using kanban cards.

45

Fig18:Racksystemimp l

ementingk a

nbancardsandsmoot h

flowbetw

eendedicate d

cells.(for382IR)


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In our case such racks can be implemented only when the two parties on each side of rack are

fixed. For this, shared operations can be divided into cells and communication will happen

only among those cells in reverse direction. This will help in streamlining the flow of materialand information. Once the flow is decided & Racks are implemented the operator of a furnace

or machine will have to look for raw material in one particular rack only without confusion.

Communication will be straight forward & trigger will pass if any empty spaces will be there

in the racks.Further there are some up gradations required before going for racks as pre requisites.( i.e.

replace tote boxes by blue containers, loading mechanisms on machines & furnaces etc)

Ultimate aim of the production system is one piece flow; for that the flows for product

family should be decided and followed in a dedicated way. So this will be first steptowards the single piece flow and JIT.

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8.2.1 Color coding of boxes in racks :

While the boxes are being interchanged through racks or any way, color codes can be usedto decide the preference of material to process. Only ends of the boxes need to be color

coded. FIFO can be easily practiced through color coding.

Example:

9. CONCLUSION

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Whenever there is a product for a customer, there is a value stream. Challenge lies in seeing it.

VSM proves to be a powerful too to visualize the non value added activities in the system.Once the current state VSM is mapped, clear picture of the chain of activities in the stream is

visualized. Next step is identifying the NVAs and attack them to have shorter path towards thefinal product. It proves very useful in seeing the bottleneck from perspective of waste

elimination.

In this era of zero defect and six sigma, no production system can afford to have NVA

in there value stream. If not eliminate we must try to minimize the buffer states and idle runs.In our case of shared operations area, we plotted the current state VSM and identified the

wastes. We also tried to suggest some ways to minimize those wastes. The ultimate aim of

system is single piece flow & it can be achieved through the approach of continuousimprovement by visualizing and eliminating wastes in the systems.

After having the picture of current system as it is now through VSM; it is important toplot the Future State VSM to have goal in our eyes. This FSVSM will play a role ofbenchmark to the planners and executers as they plan their future improvement activities and

schedules.

Future State Value Stream Map helps with the larger process of developing your Lean

Manufacturing Strategy. It requires significant knowledge of Core Disciplines and otherspecific topics. Designing a Future State requires more art, engineering and strategy than

Present State mapping. After finishing Current State Value Stream Map, a Future State Map

looks six months or more down the road at what the organization can achieve. It is this FutureState which highlights the waste in the 'system' that can be eliminated or reduced. By seeing

the amount of 'waste' the team can identify opportunities to improve. The next step is to

develop the 'Future State Implementation Plan'.

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FIG 19: Future State Value stream Map.

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sapan report

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