Course Learning Objectives

CLO$1.$ Apply Lean$/$Six Sigma terminology and principles in the context of evaluating an organization$$s performance.

CLO$2.$ Using case study analysis and$/$or client project, apply lean$/$six sigma project and change management techniques to improve an organizations performance.

CLO$3.$ Applying Lean$/$Six Sigma Techniques with an emphasis on improving flow.

CLO$4.$ Applying Quality Management Techniques with emphasis on Lean Philosophy

CLO$5.$ Evaluate current methods and practices used for the purpose of scheduling production and resource allocation.

Assessment Overview

Working in groups of $6,$ students will work collaboratively to develop an A$3,$ SIPOC, Value Stream Map, Report$-$Out presentation, and Executive Summary presentation to submit to the Executive VP of Operations for Acme BioMed $($the professor$),$ that addresses the problems and issues the Acme BioMed is facing.

This assignment leverages the cumulative Lean concepts and techniques learned throughout the semester.

Deliverables:

Week $9$ Learning Activity $2$ Initiating an A$3-$ worth $5\%$

Week $13/14$ Group Project: SIPOC, Value Stream Map, Report$-$Out $($templates provided$)$ worth $30\%$

Week $13/14$ Executive Presentation $(5$ slides$)$ worth $5\%$

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Acme Biomed Case Study

Introduction

Acme BioPed is a manufacturer of custom orthotics, partnering with Chiropractors and Podiatrists to provide custom orthotics for a range of medical issues related to foot care. Located just north of a major urban center. The manufacturing plant is open from $8$:$00$ to $4$:$305$ days per week.

There is a daily standup of $10$ minutes and a cleanup at the end of the day of $10$ minutes along with $2-15-$minute breaks.

Process Overview

The manufacturing plant $($lab$)$ consists of $4$ production lines with $10$ staff per line. The first part of the process involves applying the logo to the top cover. Approximately $60\%$ of orders require a personal top cover. The next step involves picking material for all orders, then the technicians$$ machine the base of the orthotic. From the technicians, the order is scanned into $1$ of the $4$ production cells $($A$,$ B$,$ C$,$ D$)$ which produce the orthotic. Quality control inspects the product before shipping picks it up and processes the order for shipping.

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Customer Information

The organization receives orders from over $2000$ health care practitioners on a yearly basis. Each practitioner can have between $1$ order to $100$ per year. Approximately $500$ to $600$ orders are received daily through the customer service department. However, during peak orders can reach $1000$ per day. Assumer there are $20$ working days per month.

Since custom orthotics are covered via health plans, customers tend to order towards the end of their coverage year. So$,$ the peak demand months are June and July, with the main push towards the end of the year. See the demand table below.

Month Demand

January $9,820$

February $9,980$

March $10,100$

April $10,235$

May $10,654$

June $12,894$

July $11,465$

August $8,263$

September $14,682$

October $16,234$

November $18,756$

December $17,549$

Orders for custom orthotics are received via the Gaitscan system with an electronic scan of the customers foot, or via the mail with a box containing the foam imprint of the customer$$s foot. The customer service department processes the paperwork and ensures that the order includes the necessary information need for the manufacturing processes. Acme BioPed ships daily to customers, health practitioners as the order is completed.

Supplier Information

Raw materials are shipped from two suppliers weekly based upon the forecasted demand. Once processed by receiving, the material handlers provide the inventory to the Material Picker in production.

Layout

Manufacturing Lab

The production steps are outlined below in the next sections.

Personal Top Cover

There are two production staff in this area that run $2$ machines. The big machine can process $10$ top covers $(5$ human feet$)$ at a time and takes $3$ minutes to run while the small machine can process $6$ top covers $(3$ human feet$)$ at a time and takes $2$ minutes to run. The machines breaks$-$down $10\%$ of the day due to clogging or running out of ink. The operators also perform the following tasks:

$$ Walks outside the printing room to pick up orders

$$ Puts orders on trolley inside the room

$$ Sorts the orders by date

$$ Carries the order in batches based upon the machine size e$.$g$.$ large, small

$$ Preps the files on the computer

$$ Takes the completed top covers off the machine

$$marries the top covers to the baskets containing the orders

$$ Preps the machine for the new orders

$$ Presses button to run the machine

$$ Carries finished orders to cart

Materials Picker

$$ Pulls cart from behind station picking area

$$ Picks materials needed for each order and places in basket

$$ The materials picker is interrupted often, with production staff asking questions about which material is in the basket or getting