Penang Manufacturing Corporation (PMC) produces precision components for the automotive industry. It currently has a functional layout in the machine shop and is forced to use large batch quantities due to the high setup times. The company is looking to improve its competitiveness through the implementation of lean concepts for the manufacture of PMC3234 and PMC3235. These products have high-volume, runner components that are supplied to Penaga Automotive Company (PAC). Following is the detailed information for the production at the company.

Production Process:

Both the above components follow the same process route. Steel bar is delivered to Penang Manufacturing Corporation (PMC) every Tuesday to the line. The bar is sawn into billets in pre-production are dedicated to sawing. The billets are then turned, milled, drilled, and tapped before a heat treatment process. They are then finished and machined on the grinders before dispatch to the finished goods bay.

Customer Requirements:

PMC3234, 4000unit per month.

PMC3235, 2000 unit per month.

10 components per tray.

10 trays per pallet.

One daily shipment to Penang Manufacturing Corporation (PMC).

Work Time:

20 days per month.

One shift for all production departments.

8 hours per day.

Two 15 minutes breaks during the shift.

Manual processes stop during the breaks.

PMC Production Control Department:

Receives PAC 90/60/30 day forecast and enters them into the MRP system.

Issues PMC 6 Week forecast to suppliers.

Secures raw material delivery by weekly faxed order release

Receives daily firm orders from PAC.

Generates MRP-based weekly departmental requirements based upon customer order, WIP, F/G inventory levels, and anticipated scrap and downtime.

Issues daily shipping schedule to the shipping department.

Process Information:

All the processes occur in the following order and each part goes through all the processes.

Operation 1 – Saw
•Cycle time: 8s
• Changeover time: 30 minutes
• Machine Reliability: 9%
• Observed inventory:
• 5 days before saw
• 900 NN 3234
• 300 NN 3235

Operation 2 – Lathe
• Cycle time: load/unload 10s & automatic machining 60s
• Changeover time: 1 hour
• Machine Reliability: 85%

• Observed inventory:
• 700 NN 3234
• 200 NN 3235

Operation 3 – Mill
• Cycle time: 85s
• Changeover time: 1.5 hours
• Machine Reliability: 88%
• Observed inventory:
• 300 NN 3234
• 150 NN 3235

Operation 4 – Drill
• Cycle time: 25s
• Changeover time: 10 minutes
• Machine Reliability: 90%
• Observed inventory:
• 400 NN 3234
• 200 NN 3235

Operation 5 – Tap
• Cycle time: 45s
• Changeover time: 15 minutes
• Machine Reliability: 90%
• Observed inventory:
• 300 NN 3234
• 100 NN 3235

Operation 6 – Heat Treatment
• Cycle time: 4 hours per batch
• Changeover time: nil
• Machine Reliability: 85%
• Observed inventory:
• Before Heat Treatment 900 NN 3234 & 600 NN 3235
• Post Heat Treatment 500 NN 3234 & 250 NN 3235

Operation 7 – Grind
• Cycle time: 170s
• Changeover time: 2 hours
• Machine Reliability: 85%
• Observed inventory:
• 300 NN 3234
• 100 NN 3235

Operation 8 – Finished Good Store

• Observed inventory:
• 3000 NN 3234
• 1000 NN 3235

Based on the above scenario and the information given, answer the following questions;

Draw the current state map of Penang Manufacturing Corporation (PMC) based on data that have been given on a visual diagram or other software available.

Determine the Takt Time, Value Added Time, and Non-Value-Added Time

Answer rating: 100% (QA)

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