Question: Please create a value stream map based on the case material provided. Please also consider integrating the Kanban system into the value stream map. Thank
Please create a value stream map based on the case material provided. Please also consider integrating the Kanban system into the value stream map. Thank you.
Case study: KE
KE a stock company, develops and produces filter systems for both stationary and mobile applications. KE has
staffs of approx. and a turnover of almost million Euro. KE would like to conduct a value stream
analysis for their oil filters for buses, which are produced for twelve factories of different customers at an annual
volume of The entire production runs three shifts on days per year with an hour's break per shift.
The basic body of a KE oil filter consists of a milled aluminium diecasting body housing. In addition, the finished
product contains another twentyfour purchased parts. In general, the product needs to passe through six
production processes: The cast piece is received, milled and washed, subsequently assembled in a twostep
assembly process and finally shipped as described in the following detailed process description:
Shipping The filters are shipped in pallets with layers of pieces each. On average, the preparing and
loading of each pallet, the printing and allocating of the respective shipping documents takes minutes. In
addition, the receipt and taking into storage of the goods transferred from production approximately take
another minutes. This results in an operation time per piece of seconds The process is also
used for other products, manpower is allocated to the oil filters. This results in a cycle time of seconds.
Note that the shipping personnel works in single shifts hours
Assembly The process finishes with the aligning and mounting of the plastic components of the casing, which
takes one worker seconds. In the case of two identical workstations with one worker each, the cycle time is
seconds.
Preassembly All small parts are assembled in the cast housing, which takes one worker seconds. As two
identical workstations are used one staff works for one workstation the cycle time is seconds.
Washing The milled cast parts in containers of pcs are automatically washed in continuous processes of
minutes each. Division of the processing time by the number of containers results in a cycle time of seconds.
Milling The unfinished castings are entirely mechanically processed on two milling machines. The operation
time per piece is seconds, the cycle time is therefore seconds. However, the quality defect rate for the
milling process is a bit high, with a percentage of and time loss due to rework should be taken into
consideration.
Inspection Random samples are taken from pallets of pcs The handling time is of minutes for the
pallets. The operation time per piece is thus min. pcs seconds. The receiving dock is also available
for other cast parts and works in single shifts hours One worker assigns one quarter of his time to this
product family, therefore the cycle time is seconds.
At KE stocks are counted between all production processes, ie at five different locations. In order to convert the
stocks into range of coverage in days, we can assume the daily demand of the product is constant and stable.
Finished goods storage. There are full pallets with a total of oil filters.
Unfinished goods Before and during assembly, a total of preassembled oil filters are counted.
Unfinished goods Before and during preassembly, a total of processed cast parts. It was observed
that the stocks were piled up high.
Washing. The milled cast parts are washed immediately. There is a buffer for parts upstream of the
washing machine.
Unfinished castings storage. Thanks to daily deliveries, the raw material inventory was decreased
considerably even before commencement of the value stream analysis. On the first day of value stream
mapping, there were pieces.
All external KE transport is done by truck. XAG daily delivers aluminium diecast housings in pallets of pieces
each. Orders must be placed two days before delivery. Shipping is daily on pallets of oil filters each.
At KE according to the demand forecast submitted by the customer, a weekly production is developed. In
addition, milling and preassembly are equipped with order documents. On a daily basis, the shipping
department's TMS system is supplied with the relevant dispatch information via SAP interface. Depending on the
customers' specifications, carriers must be selected and notified of the impending dispatches incl. volumes. The
"shipping" process receives the delivery documents and a picking list to retrieve the respective oil filters from the
finished goods storage.
The customers forward nonbinding demand forecasts to the SAP system, reflecti
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