LEAN CELL DESIGN

FINAL PROJECT PART C

Project ByRohan Naik --5009-5130

Aditya Kamble -- 5009-4898IE-400/564 – Lean Enterprise

Weights 0.3 0.2 0.2 0.2 0.1 1.0

Alternatives # of Change Overs

# of Workers

OEE # WorkStati

on

Stage Total Investme

nt

Profit Per Day

Pay back Period(Days)

2 Change Over Case

2 7 0.75 9 Current $9000 $142 43.25

Minimize Inventory

4 9 0.5833 13 1 $16,000 $142.21 62.62

3 Change Over Case

3 6 0.90 9 3 $9010 $142.68 43.25

Minimize Work Station

1 6 0.97 9 3 $9000 $142.68 43.20

A1 B1 A2 B2

C

E D1F D2

OP1 OP2

OP5OP6

TAKT=82 TAKT=82

PCT=70PCT=62

Average Std Deviation Sigma Level Demand

X- Demand 174 5.9 3 192

Y- Demand 175 9.5 3 204

Total 349 11.9 3 385

At the 3 Sigma Level, We find :

The Average Cycle time we Take as 60 (since X is at 60 and Y is at 70 and they are approx. equal)

At 3σ, Max Demand = 385 and corresponding planned cycle time = 64

This Suggest that we can handle fluctuations up to 3σ levels and meet the demands.

Operating at PCT minimizes inventory

Working days considered for calculations

Revenue / unit: X = $2.75, Y = $4.00

Material Costs / unit: X = $1.50,Y = $2.00

Labor Costs / unit: X = $0.96,Y = $1.09 Expected profit for the year = $52,427.50

Total Unit Cost: X = $2.46,Y = $3.09

Profit / unit: X = $0.29,Y = $0.91

Cost of workstations = $9,000

Stage III Improvement Costs = $12,000 Investment cost = $ 31,485.50

Payback period = 43 Days

Annual Savings / Annual Cost

Annual Savings based on inventory carryover cost savings and operator savings = $20942

Profit per day =$ 142.65

Cell-based design for Operations A to F:

Achieved main objective

Minimized floor place

Minimize inventory

Minimize number of Operators : 6

Minimize number of Workstation : 9

Maximum space for additional product families

Additional Value Stream Improvements:

Supermarket-based finished goods delivery and at injection molding

Plastic raw material delivery from 1 /week to 1 /day.

Changeover time improvements at Injection Molding from 60 to 30 minutes.

Project Part C By:

Rohan Naik – 5009-5130Aditya Kamble – 5009-4898