Competition has driven manufacturers to improve product quality, short time availability to market, cost structures, delivery, responsive customer service, and many other important measures. Globalization of the Toyota Production System has introduced modern manufacturing methods, which integrate waste reduction activities and quality into the production processes as they are performed. This combination of the management philosophy and activities, aiming to reduce waste and improve quality, is known as lean thinking.
XYZ company is a leading Electronic Contract Manufacturer that provides quality custom design engineering, prototyping, and manufacturing of printed circuit boards, cable assembly, and integrated electronic systems. This company obtains most needed parts from various vendors and some parts are produced inside the company. The company utilizes a dedicated production line for board manufacturing; and operates a make-to-order (MTO) production environment based on contracts received from various types of customers. This means that the company does not have the ability to anticipate and provide all parts and requirements before getting a verified order from an outside vendor. In some cases, their main problem is a significant delay and inability to deliver their products to the customers prior to the agreed due date. Subsequently, it creates additional and unnecessary costs and results in customer dissatisfaction.
This research discusses the production processes for one of their selected products. The purpose of this study was to reduce the preventable delays in shipments to the customers. Lean Six Sigma methodology, namely DMAIC (Define, Measure, Analyze, Improve, Control) approach was applied to detect the root cause of this problem. Also, the improvement tools and techniques such as Process Map, Flow chart, Pareto chart, and Value Stream Mapping (VSM) were used in several phases of the methodology.
With a case study of this Electronic Contract Manufacturing company, the production process path is visualized by mapping the current state value stream. After tracking the production process of this XYZ company, problems affecting the delivery time are identified and its causes are analyzed. A future state value stream map is created based on some suggested improvement strategies, with which the production cycle of the order is expected to be shortened from 12 days and 6 hours to 5 days and 22 hours, representing a 52% reduction in shipping delays along with a reduction of the workforce from 35 to 12 representing 66% in production cost. Value stream mapping does not only helps understand and streamline production processes but has proved to be a useful technique to shorten delivery time and reduce production costs.
|Advisor:||Eneyo, Emmanuel S.|
|Commitee:||Cho, Sohyung, Sang Ko, Hoo|
|School:||Southern Illinois University at Edwardsville|
|School Location:||United States -- Illinois|
|Source:||MAI 82/7(E), Masters Abstracts International|
|Subjects:||Industrial engineering, Engineering|
|Keywords:||DMAIC , Production planning processes|
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