gapr11glscm130_vsm_dm

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Assignment Submission Form

Individula Name : Rohit Kaushal

Course Name : Demand Management

Assignment Title : VSM Analysis

Individual or Group : Individual

Prepared by :

Submitted by : Rohit Kaushal

SPJCM Honor Code:

y I will represent myself in a truthful manner

y I will not fabricate or plagiarize any information with regard to curriculum

y I will not seek, receive, or obtain an unfair advantage over other students

y I will personally uphold and abide, in theory and practice, the values, purpose, and rules of the SPJCMHonor Code

y I will respect the rights and property of all in the SPJCM community

I certify that I have adhered to the Honor Code of the SPJCM in completing this assignment.

Signature: Rohit Kaushal Date: 17.12.2011

To be filled by the Evaluator only

Score Obtained:

Name of the Student / s Roll Number DivisionRohit Kaushal GAPR11GLSCM130



Company and Process (BEAB etikett & system AB)

BEAB has more than 30 years¶ experience of producing labels. They have provided customers

with different capabilities required to produce labels: from designing steps to the shipment of labels. Apart from producing labels, BEAB has also sold printers and ribbons so customers can

print their own labels. It is sometimes more convenient for the customer to have their own printer

and place it close to their manufacturing site. By owning a printer customers can request thatBEAB supply them with neutral labels and ribbons .The result would be a postponement in printing information, and reducing the risk of errors to great extent since the customers do not

have to consider the transportation time form BEAB to their production site and they can print onneutral labels last minute.

BEAB head office is located near Borås and has 36 employees. Its customers are located allaround the world and include large companies like IKEA, VOLVO and HEMTEX.

All products are Made-To-Order (MTO), therefore no production can be made before an order has been released.

A description of each department and its role is presented as following:

Ordering Department

Each order was received at the ordering department by way of three means: telephone, fax andmail. Some orders were new and some were repeat orders. New orders were then sent to the pre-

press department for designing and ordering of stereo coverings.

NOTE: The lead time was calculated from the day that the order was received at BEAB.

Prepress Department

The pre-press department was responsible for equipping the production machines with newstereo coverings and die cutters.

Material Planning and Control

In the material planning and control section, the availability of raw materials was checkedagainst the material requirements. The EDI system used at BEAB was called Concorde XLA. It

was used only inside the company for checking the availability of raw materials.

Production Department

Each order was produced by an assigned press machine. Depending on the customer¶s request,

orders may have gone through a converter to reduce the rolls¶ diameter or orders have been fanfolded by special machines. The waiting time before pressing varies between one and six

days. Each machine had one operator who controls every step. That assigned operator should notleave the machine when it is running. The work day consisted of one shift lasting for 7.75 hours.

The press should have been set up according to what is required for each order. The setup timediffered from 15 minutes to 2.5 hours, depending on the order.

Shipping Department

After the labels were produced, they were carried by a lift truck to the shipping department.Packages for the same customer were put on the same pallet and a plastic film covers them. A

delivery note was printed and attached to each pallet.



AnalysisValue Stream Mapping

Two random orders were selected from the ordering department. One was a new order and theother was a repeated order.

The repeated order was received at BEAB on 13tApril with a due date of 23 April. The label was

for one color and required 5400 labels.Press machine availability = 84 %

Converter availability = 72%Time to produce one label (Takt time) = 0.0015 of a minute

The production carried out on 18 April, were converted the same day. They were then shippedthe next day before noon.

One of the most time consuming processes was the press change over.

Below is the VSM diagram shows the current state map. This map includes all timings such asthe setup time, cycle time and wait time.



Production lead time = 4.37 daysTotal lead time = 7 days (for this particular order)

Cycle time for the assigned press machine = 15 minutes and 6 minutes for the convertor Wait time before the press machine = 3 days

It is evident now that the press machine was the most important bottleneck of all the processes.

It is also obvious, from the above map that passing through the ordering department is anunnecessary step for new orders. This can be seen as a waste of time and creates no value to the

order.

R ecommendations

y R eduction of change over time:From the analysis section, it was apparent that the pressing machines were the most significant

bottleneck. To accomplish this, two personnel would be required to work on each machineduring the change-over process instead of one person. One person could do the preparation for

the next order and the other could clean and wash the cylinders and stereo coverings from previous order and take them back to their storage locations, simultaneously.

y R eduction of work in process (WIP) and wait time between the press and

converter:In order to reduce the WIP inventory and the wait time between two processes, a special kindof converter could be used. It is attachable to the press machine, so that the two processes

are combined into one process. The key point in lean production was to reduce the number of processes thereby reducing the wait time and WIP.

y The new orders should arrive at prepress: New orders must first be received by the pre-press department. Then necessary actions must betaken to prepare the new design or order the dies and cylinders. Afterwards the orders could besent to the ordering department for registration. In this way, a significant amount of time would

be saved and the wait time would categorically be decreased.

y Collect and store information about performance: Information was not kept, categorized or utilized in an appropriate way at BEAB. Information

concerning lead time, real demand, returns, customer satisfaction was not available.

Future state map:The future state map is shown below in figure. It illustrates the different processes after

implementing the aforementioned recommendations.



By implementing the above recommendations, the total lead time would be reduced from eightdays to approximately six days. The production lead time would be reduced from 4.35 days to

four days. The main difference between the current and future situations was the reduction of thechange-over time.

gapr11glscm130_vsm_dm

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