INDU $321$Lean Manufacturing

ASSIGNMENT $1$

Due back on February $13,20241$:$00$ PM$.$

$$ This is an individual assignment. Submit

only your own work. Your submitted work

will be carefully checked for plagiarism.

Problem description:

LGG company is interested in implementing lean

concepts in its refrigerator production facility to

reduce its production lead time and costs. A major

step to convert its traditional production system to

a lean one is to develop the current state map. The

company produces different models of

refrigerators, but they decided to start with a

product family that contains two models: model

$301$ and model $302.$ The final products are sent

directly to the distributor Sellers Inc. once a week

and the metal sheets are received from their

supplier Steels Co$.$ once a week.

Customer$$s demand

While the weekly demand may exhibit

considerable mix variations, the total demand has

been quite stable at an average of $140$ units per

week $($with an average of $100$ units for model $301$

and $40$ units for model $302).$ Sellers Inc. currently

receives one weekly shipment from the company

and would prefer daily shipments in the future as

well as some reduction in unit cost.

Work time

$5$ days per week; One $8-$hr shift per day.

Two $15-$min paid break periods;

The regular time labour cost is $$40/$hr and the

overtime labour cost is $$60/$hr$.$

The current collective agreement limits overtime

to a maximum of $2$ hrs per day.

Production Control Department

The Production Control Department performs the

following actions:

Receives a monthly forecast from the buyer via

fax and enters it manually into the SAP system.

Receives weekly order from the buyer via fax,

Sends the $8-$week forecast to the raw material

supplier via fax,

Replenishes the raw metal sheets by weekly

orders via fax,

Generates the MRP$-$ based weekly requirements,

Sends weekly operations schedules to all the

departments.