Premiere Manufacturing Case Study Assignment - Current State Mapping Background: Premiere Manufacturing, Inc., is a Tier 1 automotive supplier producing #4, #6, #8 and #10 coolant hoses for six key customers. Over time, Premiere has been making improvements through kaizen activities. Recently the company replaced two screw machines with two dual-spindle CNC machines, which have not proven to be as reliable as expected. One of Premiere's key customers, Cord, Inc., has been consolidating its supply base. Cord has been auditing and analyzing their suppliers' abilities to meet quality and delivery demands while also reducing costs. Premiere's long term agreement (LTA) with Cord is about to expire. Cord is willing to keep doing business with Premiere but is demanding: A 5 percent cost reduction annually over the next two years On-time delivery of 98 percent or higher A lead-time reduction of 6 weeks to less than two weeks The plant manager decides to sign the new LTA immediately, because he does not want to run the risk of losing Cord's business. He is confident that you will apply lean tools and methods to achieve the performance goals that Cord demands. Current State Map. HAS A Hantering Cone Mly Ouman Happing Premiere atacalcio Art production i s 30.- perhit. There is wydd Premiere Manufacturing Case Study Assignment - Current State Mapping Background: Premiere Manufacturing, Inc., is a Tier 1 automotive supplier producing #4, #6, 18 and 10 coolant hoses for six key customers. Over time, Premiere has been making improvements through kaizen activities. Recently the company replaced two screw machines with two dual spindle CNC machines, which have not proven to be as reliable as expected. One of Premiere's key customers, Cord, Inc., has been consolidating its supply base. Cord has been auditing and analyzing their suppliers' abilities to meet quality and delivery demands while also reducing costs. Premiere's long term agreement (LTA) with Cord is about to expire. Cord is willing to keep doing business with Premiere but is demanding: A5 percent cost reduction annually over the next two years On-time delivery of 98 percent or higher A lead-time reduction of 6 weeks to less than two weeks The plant manager decides to sign the new LTA Immediately, because he does not want to run the risk of losing Cord's business. He is confident that you will apply lean tools and methods to achieve the performance goals that Cord demands. Current State Map. This value stream is to focus on the #4 (0.25-inch) and 16 (0.125-inch) coolant hoses The team has gone back to the floor and collected the data, beginning with the shipping area and working back to the machining process. The data they collected is as follows. Premiere Current State Data Collection Customer Requirements Average demand: 10,080 units per month = 504 per day: 6,720 14 hoses 336 per day 3,360 #6 hoses 168 per day Shipping month: 20 days Units per container: 24 Containers per day: 21 Supplier information Premiere receives a weekly shipment of 2,500 units from its supplier, ABC, Inc Premiere Process Attributes Availability: Total available production time is 8.5 hours (510 minutes) per shift. There is a 30 minute unpaid lunch break and two 10 minute breaks--a total of 50 regularly scheduled minutes of planned downtime. Therefore, the available production time is 460 minutes (27,600 seconds) per shift. Shipping: Location = staging area Frequency/method = daily/UPS Finished-goods inventory = 2,000 units Marking: Cycle time = 50 seconds Changeover = 5 minutes Availability = 27,600 seconds Uptime = 99% Operator = 1 WIP = 2000 units between testing and marking Testing: Cycle time = 30 seconds Changeover = 5 minutes Availability = 27,600 seconds Uptime = 99% Operator =1 WIP = 2000 units between crimping and testing Crimping: Cycle time = 40 seconds Changeover = 5 minutes Availability = 27,600 seconds Uptime = 99% Operator = 1 . Shifts =1 WIP = 3,500 units between deburring and crimping Deburring: First-In, first-out (FIFO) lane between machining and deburring Cycle time = 5 seconds Changeover = 0 Availability = 27,600 seconds Uptime = 100% Operator = 0 (Machining operator also runs deburring when necessary) Shifts = 1 . WIP = 3,360 #14 and 1,680 #6 between Machining and Deburring Machining: Cycle time (CT) = 45 seconds Changeover time (C/O) = 60 minutes Availability = 27,600 seconds Uptime = 87 percent Operator =1 Shifts=1 WIP: 2,500 prior to machining Flow of Information and Material All communications with customer and supplier are electronic. Production control receives monthly forecasts and weekly orders from Cord. Production control transmits monthly forecasts and weekly orders to ABC (supplier). There is a weekly order release to the production supervisor. There is a daily order release from the production supervisor to machining, crimping, testing, and marking. All material is pushed, so there is a push icon between each process. There is a FIFO lane between machining and deburring. Premiere Manufacturing Case Study Assignment - Current State Mapping Background: Premiere Manufacturing, Inc., is a Tier 1 automotive supplier producing #4, #6, #8 and #10 coolant hoses for six key customers. Over time, Premiere has been making improvements through kaizen activities. Recently the company replaced two screw machines with two dual-spindle CNC machines, which have not proven to be as reliable as expected. One of Premiere's key customers, Cord, Inc., has been consolidating its supply base. Cord has been auditing and analyzing their suppliers' abilities to meet quality and delivery demands while also reducing costs. Premiere's long term agreement (LTA) with Cord is about to expire. Cord is willing to keep doing business with Premiere but is demanding: A 5 percent cost reduction annually over the next two years On-time delivery of 98 percent or higher A lead-time reduction of 6 weeks to less than two weeks The plant manager decides to sign the new LTA immediately, because he does not want to run the risk of losing Cord's business. He is confident that you will apply lean tools and methods to achieve the performance goals that Cord demands. Current State Map. HAS A Hantering Cone Mly Ouman Happing Premiere atacalcio Art production i s 30.- perhit. There is wydd Premiere Manufacturing Case Study Assignment - Current State Mapping Background: Premiere Manufacturing, Inc., is a Tier 1 automotive supplier producing #4, #6, 18 and 10 coolant hoses for six key customers. Over time, Premiere has been making improvements through kaizen activities. Recently the company replaced two screw machines with two dual spindle CNC machines, which have not proven to be as reliable as expected. One of Premiere's key customers, Cord, Inc., has been consolidating its supply base. Cord has been auditing and analyzing their suppliers' abilities to meet quality and delivery demands while also reducing costs. Premiere's long term agreement (LTA) with Cord is about to expire. Cord is willing to keep doing business with Premiere but is demanding: A5 percent cost reduction annually over the next two years On-time delivery of 98 percent or higher A lead-time reduction of 6 weeks to less than two weeks The plant manager decides to sign the new LTA Immediately, because he does not want to run the risk of losing Cord's business. He is confident that you will apply lean tools and methods to achieve the performance goals that Cord demands. Current State Map. This value stream is to focus on the #4 (0.25-inch) and 16 (0.125-inch) coolant hoses The team has gone back to the floor and collected the data, beginning with the shipping area and working back to the machining process. The data they collected is as follows. Premiere Current State Data Collection Customer Requirements Average demand: 10,080 units per month = 504 per day: 6,720 14 hoses 336 per day 3,360 #6 hoses 168 per day Shipping month: 20 days Units per container: 24 Containers per day: 21 Supplier information Premiere receives a weekly shipment of 2,500 units from its supplier, ABC, Inc Premiere Process Attributes Availability: Total available production time is 8.5 hours (510 minutes) per shift. There is a 30 minute unpaid lunch break and two 10 minute breaks--a total of 50 regularly scheduled minutes of planned downtime. Therefore, the available production time is 460 minutes (27,600 seconds) per shift. Shipping: Location = staging area Frequency/method = daily/UPS Finished-goods inventory = 2,000 units Marking: Cycle time = 50 seconds Changeover = 5 minutes Availability = 27,600 seconds Uptime = 99% Operator = 1 WIP = 2000 units between testing and marking Testing: Cycle time = 30 seconds Changeover = 5 minutes Availability = 27,600 seconds Uptime = 99% Operator =1 WIP = 2000 units between crimping and testing Crimping: Cycle time = 40 seconds Changeover = 5 minutes Availability = 27,600 seconds Uptime = 99% Operator = 1 . Shifts =1 WIP = 3,500 units between deburring and crimping Deburring: First-In, first-out (FIFO) lane between machining and deburring Cycle time = 5 seconds Changeover = 0 Availability = 27,600 seconds Uptime = 100% Operator = 0 (Machining operator also runs deburring when necessary) Shifts = 1 . WIP = 3,360 #14 and 1,680 #6 between Machining and Deburring Machining: Cycle time (CT) = 45 seconds Changeover time (C/O) = 60 minutes Availability = 27,600 seconds Uptime = 87 percent Operator =1 Shifts=1 WIP: 2,500 prior to machining Flow of Information and Material All communications with customer and supplier are electronic. Production control receives monthly forecasts and weekly orders from Cord. Production control transmits monthly forecasts and weekly orders to ABC (supplier). There is a weekly order release to the production supervisor. There is a daily order release from the production supervisor to machining, crimping, testing, and marking. All material is pushed, so there is a push icon between each process. There is a FIFO lane between machining and deburring