Value Stream Mapping ABC Electronics Inc.

VSM Project Instructions

Using the information provided in the ABC Electronics Case, develop the following:

A Current State Map of the Value Stream

Ideas for improvements to the process

Assumptions used in creating the Future State

A Future State Map of the Value Stream

Suggestions to consider:

Injection mold equipment is not compatible with printed circuit board assembly equipment

(heat and dirt issues)

Inventory is considered to be found prior to an operation unless otherwise noted

There can be multiple inventory locations between operations

Details of the VSM to construct

Value Stream Mapping ABC Electronics Inc.

ABC Electronics Inc. manufactures several products for eStuff Merchandise. This case considers

one product family, NF Device, which is available in three colors. The end product is packaged in

eStuff brand packaging and shipped to an eStuff Distribution Center.

The Production Process

The process for the manufacture of NF Device begins with Circuit Board Assembly and an Injection

Mold operation. The circuit board goes through a Test operation and the two parts join up in the NF

Device Assembly operation. The full assembly then proceeds to a Functional Test, Packaging and

finally to the Finished Goods Warehouse.

ABC Electronics Work Day

20 days per month

2 shifts per day

8 hours per shift (OT available if necessary)

2 10 minute breaks per day (paid), 30 minute lunch (unpaid)

eStuff Merchandise Requirements

120,000 pieces per month

60,000 blue / 30,000 red / 30,000 green

eStuff Merchandise runs 2 shifts

Requires daily shipments in palletized returnable containers (25/tray 20 trays/pallet)

Sends 30/60/90 day forecast via email

Sends a Daily Ship Requirement firm order for each day product quantity and mix

ABC Production Control

Issues a rolling 4 week forecast to raw material suppliers

Issues firm weekly ship requirement to suppliers by fax (materials delivered M & F)

Generates MRP based weekly departmental requirements based on open orders

Monitors WIP inventory, F/G inventory, scrap and down time

Issues weekly production schedules to operations

Process Information

Circuit Board Assembly

Makes parts for several ABC product lines

Cycle time 16 sec.

C/O time 20 minutes (good part to good part)

Reliability 80%

Observed inventory 15000 completed boards ( 2 weeks raw material observed)

Circuit Board Test

Manual operation (3 workstations)

Cycle time 25 sec.

C/O time 10 minutes (fixture)

Reliability 100%

Observed inventory 15000 before test / 11,000 after test / 2200 rework

Injection Mold

Makes multiple products for ABC Electronics

Cycle time 6 sec. (10 pcs. per 1 minute mold cycle)

C/O time 1 hr. 20 min.

Reliability 85%

Observed inventory 23,000 blue / 10,000 red / 3000 green (1 week raw material observed)

NF Device Assembly

Manual operation (5 workstations)

Cycle time 1 min. 30 sec.

C/O time 0

Reliability 100%

Observed inventory 6000 blue / 5000 red / 2000 green

NF Device Test

Manual operation (2 workstations)

Cycle time 12 sec.

C/O time 0

Reliability 100%

Observed inventory 8000 blue / 1000 red / 1000 green

Package

Manual load and ultrasonic welder stretch wrap pallet

Cycle time 1.5 min. per pallet

Value added time 30 seconds

C/O time 0

Reliability 82%

Observed inventory 3500 blue / 1750 red / 1200 green

Finished Goods Warehouse

Observed inventory 12000 blue / 6000 red / 7500 green

Shipping

Picks parts from F/G warehouse and stages for truck shipment

can you create an example value stream of this?