Question: INDU 3 2 1 Lean ManufacturingASSIGNMENT 1 Due back on February 1 3 , 2 0 2 4 1 : 0 0 PM . This

INDU 321Lean ManufacturingASSIGNMENT 1Due back on February 13,20241:00 PM. This is an individual assignment. Submitonly your own work. Your submitted workwill be carefully checked for plagiarism.Problem description:LGG company is interested in implementing leanconcepts in its refrigerator production facility toreduce its production lead time and costs. A majorstep to convert its traditional production system toa lean one is to develop the current state map. Thecompany produces different models ofrefrigerators, but they decided to start with aproduct family that contains two models: model301 and model 302. The final products are sentdirectly to the distributor Sellers Inc. once a weekand the metal sheets are received from theirsupplier Steels Co. once a week.Customers demandWhile the weekly demand may exhibitconsiderable mix variations, the total demand hasbeen quite stable at an average of 140 units perweek (with an average of 100 units for model 301and 40 units for model 302). Sellers Inc. currentlyreceives one weekly shipment from the companyand would prefer daily shipments in the future aswell as some reduction in unit cost.Work time5 days per week; One 8-hr shift per day.Two 15-min paid break periods;The regular time labour cost is $40/hr and theovertime labour cost is $60/hr.The current collective agreement limits overtimeto a maximum of 2 hrs per day.Production Control DepartmentThe Production Control Department performs thefollowing actions:Receives a monthly forecast from the buyer viafax and enters it manually into the SAP system.Receives weekly order from the buyer via fax,Sends the 8-week forecast to the raw materialsupplier via fax,Replenishes the raw metal sheets by weeklyorders via fax,Generates the MRP- based weekly requirements,Sends weekly operations schedules to all thedepartments.Production processes:Each unit goes through all the production processesin the following order.Process Name Metal cutting &bending (shared)Used labor 1Cycle time (sec.)45Changeover time(min.)45Up-time 60%Observed inventory 15 days of raw sheets(worth $6000),380 units of cut/bentsheets @$5 each*Process Name Base & DoorassemblyUsed labor 3Cycle time (min)36(cannot reduce)Changeover time (min.)2Up-time 95%Observed inventory 300(units) @ $50each*Process Name InsulationUsed labor 2Cycle time (min)20(cannot reduced)Changeover time (min.)5Up-time 85%Observed inventory 261(units) @ $60each*Process Name Engine +Condenser2/2Used labor 2Total cycle time (min)20(cannot reduce)Changeover time (min.)4Up-time 95%Observed inventory 210(units) @ $150each*Process Name Gas insertion*Used labor 1Cycle time (min)15Changeover time (min.)15Up-time 90%Observed inventory 200(units) @ $300each**Gas insertion is done at another location andcannot be relocated. Refrigerators are transferredto the gas insertion station once a day.Process Name Main AssemblyUsed labor 6Total cycle time (min)60Changeover time (min.)0Up-time 95%Observed inventory 247(units) @ $500each*Process Name Testing &PackagingUsed labor 3Cycle time (min)27Changeover time (min.)5Up-time 90%Observed inventory 290(units) @ $650each*Process Name Shipping* Note: Given costs represent the unit material+ labour cost of an item at that particular stageof production (excluding overhead cost).Annual unit holding cost is historically shown tobe 15% of the material + labour costs.Use Microsoft Visio to draw the current statemap (CSM) of the case described below. Writea report to explain the material and informationflow.Also show your calculations for the totalproduction lead-time and value-added time aswell as all the information required in thefollowing table:CSMTotal Production Leadtime(days)Total Value Added Time(minutes)Number of OperatorsTotal annual Mtl+Labour CostUnit labour costUnit holding cost (annual)Your report should also contain a discussion ofthe wastes you see and their sources.Submit the following two files on Moodle: 1)MS Word file with all our detailed answers tothe questions above, and 2) your MS Visio filefor your value stream map. Submit your filesin their original format. Do not submit pdf, zip,or tar files.Moodle will close at 1:00PM and late assignmentswill not be accepted.Process Name Accessory insertionUsed labor 2Cycle time (min)16Changeover time (min.)0Up-time 95%Observed inventory 200(units) @ $600each*

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