You have been employed as a consultant to implement Lean within Evenort

Module Title LeanOperations

The customer's expectations

You have been employed as a consultant to implement Lean within Evenort, a business providing bespoke flanges to the oil and gas industries. You have Eleven weeks to consider all of the available material. After which you are required to produce a written document detailing Lee's options. (Resigning is not one of them!)

Task:

• Review the literature giving detailed examples of where within industry Lean has been applied, the strategies followed when implementing, the benefits achieved and whether there are any lessons to be learned.
• Create a future state Value Stream Map.
• Propose approaches which can feasibly be considered when implementing lean manufacturing principles within Evenort. Stating where the most benefit would be gained. Are there any tools and techniques which you would not implement?
• The key to successfully introducing Lean is to ensure buy-in from all employees. To this end you are required to produce a detailed plan. State what tools and explicitly where would implement them to ensure that the maximum benefits were gained from implementing Lean within the business.
• Create an implementation plan including a discussion abouthow you would implement the lean tools you have selected, as well as the anticipated benefits.

Conditions of Assessment

· To be completed on a wholly individual basis.

· It is expected that some of the information which you consider necessary to complete this assignment has been omitted and as such you will need to make a number of assumptions. State all of the assumptions you have made in completing this assignment.

· Your work should be appropriately and correctly referenced. If you are unclear of how to reference your work please seek guidance from the Learning Centre.

· You are expected to write 3000-5000 words.

· This assignment is worth 50% of the total assessment load.

· Late submission will result in a zero mark being awarded in common with standard university regulations.

Contents

Assignment 2b (Individual Assignment) (2011)1

The customer's expectations.1

Conditions of Assessment1

Scenario.3

Context4

General Company Background.4

The Production Process.4

Examples of typical products (flanges).5

Facility Layout6

Product route.7

Current Value Stream Map.9

Appendix.10

Current Value Stream Map.16

Flange Production: Saw Cutting Process Data.17

Administrative Process.18

Marking Scheme.19

Table of Figures

Figure 1 Aerialphotograph of Evenort. (Building with white roof.)3

Figure 2 0.75" Diameter Flange.5

Figure 3 16" Diameter Flange.5

Figure 4 Shop Floor Layout.6

Figure 5 Production Route 1.7

Figure 6 Manufacturing Process and Product Route.8

Figure 7 Current Value Stream Map.9

Figure 8 Product Route 1.11

Figure 9 Product Route 2.12

Figure 10 Product Route 3.13

Figure 11 Product Route 4.14

Figure 12 Some ideas for improving the site.16

Scenario

Manufacturing and logistics industries involve the movement of physical items through a series of processes and acted upon by discrete resources. Being aware that industry is under constant pressure to provide high quality, timely products while utilising the minimum of resources you are required to research and apply appropriate Lean Tools and techniques within Evenort, a small manufacturing business situated based in South Yorkshire. Thereby helping the business better identify and removewaste. Below,Figure 1, is an aerial photograph of Evenort's premises. It should be noted from the photograph that there is little room for expansion as there is a train track behind the factory and buildings on either side. It may be possible to extend the building towards the main road if required.

Figure 1Aerial photograph of Evenort. (Building with white roof.)

Context

In 2009 as the world's economy was in the midst of recession Evenort, an SME based in South Yorkshire, was seeking to increase efficiency within the business through implementing a process improvement strategy. In conjunction with Sheffield Hallam University a Knowledge Transfer Partnership was entered into providing the opportunity to change. Lee, the Knowledge Transfer Associate having an awareness of Lean, 6 Sigma, and discrete-event simulation has the opportunity to make significant improvements to the bottom line of the business; but before making any change to the business he must first identify what improvements could be made and devise a strategy for making those improvements. What could, where would you and in what order would youimplement changes? Make your recommendations.

The Evenort Case is intended for using on a process improvement course. The normal participant is recent graduate who may be taking this module on a full or part-time basis and has little prior exposure to the practical side of process improvement.

General Company Background

Incorporated in Sheffield in 1982, Evenort is currently situated over two sites. The Head Office and main manufacturing site is at Houghton Road, Dinnington, Sheffield, S25 4JJ, UK. With its plasma cutting workshop based at: Shop 12, Robert Jenkins Works, Wortley Road, Rotherham, S61 1LT, UK.

Evenort's commitment to manufacturing excellencehas established the company as a reliable partner in the processing of Stainless Steel. Evenort's business proposition is to supply high value bespoke products, typically flanges, produced within 24hours of order, to the highest quality standards and manufactured from alloys appropriate to the environment, be it sour or acidic. As such their products are often used in the oil and gas industries.

The Production Process

Evernort offers a range of products and services which includes:

· Steel & Alloy Flanges

· Bar Processing

· Advanced Manufacturing

· Deep Water Shipments

· Plasma Cutting

However, the focus of this case study is Evenort's Head Office where flanges are machined, either from cut bar or semi finished castings.

Semi finished forgings are usually purchased from Hilton Metal Forging Ltd. based in India of whom Evenort owns a substantial share of and is the official UK agent.

Examples of typical products (flanges).

The flanges come in a variety of sizes but typically range in size from 98mm Dia to 597mm Dia and are manufactured from stainless steel.Figure 2 andFigure 3 illustrate and provide schematics of the products.

0.75" ASA 150LB RFSO 316/L

Dimensions in mm D K L C N H B R O F No.Holes 98 69.8 15.9 12.7 38 15.9 27.7 3 42.9 1.6 4

Figure 2 0.75" Diameter Flange

16.00" ASA 150LB RFSO 316/L

Dimensions in mm

D	K	L	C	N	H	B	R	O	F	No.Holes
597	539.8	28.6	36.5	457	63.5	410.5	9.5	469.9	1.6	16

Figure 3 16" Diameter Flange

Facility Layout

The manufacturing facility has grown and expanded as demand for specific products has increased. This led to equipment being purchased and located where there was space, which Lee thinksmay or may not be in the best location from a process efficiency point of view. The current layout can be seen inFigure 4.

Figure 4 Shop Floor Layout.

Product route

Lee has spent several weeks collecting data and has been able to identify four different routes through the factory.The first of which is shown inFigure 5 with the remainder given in the appendix.

The generic process route consists of Sawing the bar to length (if manufactured form bar and not from a semi finished forging), turning, drilling, inspecting, marking and packing.

Figure 5 Production Route 1

An alternative representation of the process route can be seen inFigure 6.

Figure 6 Manufacturing Process and Product Route.

Current Value Stream Map

From compiling the above data and direct observation Lee has created the following Value Stream Map,Figure 7.

	Figure7 Current Value Stream Map

Appendix

Figure8 Product Route 1

Figure9 Product Route 2

Figure11 Product Route 4

Current Raw Material Inventory and WIP for Reference to Make Batch Size Assumptions
Bar	Route 1	For CNC-T1,T3,T4	For CNC-D2, D3, D4	For Inspect	For Mark	For Pack
2 weeks stock	137 parts, 1 to 10 types of parts	79 parts, 1 to 7 types of parts	20	0	45
Forge	For M-L1, L2
4 months stock	64 parts, 1 to 10 types of parts
	Route 2	For Mazak INT 200	For Mazak VAX 500	5	10	10
	40 parts, 1 to 5 types of parts	77 parts, 1 to 5 types of parts
	For Mazak INT 300
	17 parts, 1 to 3 types of parts
	Route 3	For CNC-T2, M-L3, L4	For CNC-D5	4	0	4
	16 parts, 1 to 5 types of parts	6 parts, 1 to 2 types of parts
	Route 4	For CNC-T&D5		6	0	0
	6 parts, 1 to 4 types of parts
Note: This inventory and WIP is just for reference so that you have an rough idea when you make assumption on batch size.
The WIP of parts number for different operation and types number varies day by day. They are average figures based on my one week statistics.

Current Value Stream Map

Figure12 Some ideas for improving the site

Flange Production: Saw Cutting Process Data 304, 316 Material Bar Saw Cutting Data
Bar Size (Ømm)	Saw Type Used for Cutting	Cutting Time (mins)	Varation
76		3	±1
82
88
95
101		5	±1
107
114
120	HA250
127
133
139
152		10	±2
165
177
185
190
200		17	±3
203
215
220
228	HA400
241
254		25	±4
279
285
304		38	±4
340
355		59	±5
381	HA500
406		75	±6
431
457		100	±7
520	HA700	150	±8
580
640		220	±10
Duplex Steel e.g. F44 and Nickel Alloy e.g. 625 Material Bar Saw Cutting Data
76		4	±1
82
88
95
101		10	±2
107
114
120	HA250
127
133
139
152		22	±3
165
177
185
190
200		37	±4

Administrative Process

Physical equipment in process

4 x PC for orders (4 staff)

1 printer - job sheets (carbon paper)

1 printer - WRI cards, drawings, test certificates (normal)

1 PC - Diana/Peter -digital filing, printing

(Peter also has PC but not necessarily required for this particular process)

Marking Scheme

Indicative weighting: Each task will carry an equal weighting.

	<40	40-50	50-60	60-70	>70
Task 1 Review the literature giving detailed examples of where Lean has been applied, the strategies followed when implementing, the benefits achieved and whether there are any lessons to be learned.	One of two examples.	Some examples of common applications.	Many examples applications given.	plus... many varied examples. A table of applications from a published source.	plus... primary research with discussion of the validity of the table.
Task 2 Create a future state Value Stream Map.	Does not understand the concepts.	Minor mistakes.	Symbols used appropriate.	Redesigns the process incorporating Lean tools and techniques.	plus... Indicates where and what changes are required.
Task 3 Propose approaches which can feasibly be considered when implementing lean manufacturing principles within Evenort. Stating where the most benefit would be gained. Are there any tools and techniques which you would not implement?	Inappropriate schedule.	Schedule provided but lacks justification.	Implementation schedule, weightings given for each activity.	plus... Difficulty of implementing vs. benefit gained.	plus... tools and techniques which should not be implemented with appropriate justification.
Task 4 The key to successfully introducing Lean is to ensure buy-in from all employees. To this end you are required to produce a detailed plan. State what tools and explicitly how, where and when you would implement them to ensure that the maximum benefits were gained from implementing Lean within the business.	Some tools stated.	Tools have been considered together with where they could be applied.	Detail plan produced stating where and when tools would be implemented.	Explicit examples from other businesses of how and where the tools you are recommending have been implemented.	plus... identification and quantification of the metrics used to quantify the benefits of implementing your chosen improvements.