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The new business manager for the branch is assigned the task of investigating the reasons for which the company's revenue generation is fluctuating in nature even though the production is consistent over the course of a given financial year. Alongside, it is also interesting to note that the company procures steel and accessories through bulk orders in order to ensure that there are enough supplies for demands in the target market of the entire European Union. The branch manager spotted this as a major flaw in the manufacturing process as the price of the raw materials aren't meant to be stay at the same level throughout the year. Hence it is clear that the effectiveness of the manufacturing process can be increased through the use of JIT manufacturing process in the workshop. The branch manager also identified that most of the accessories purchased in bulk orders are available locally and can be purchased at a fair price thus avoiding the need for an expensive dealer or purchase the goods through the pull strategy.
Furthermore, the branch has a healthy customer supplier relationship, which can be utilised to streamline the production process as well as ensure that the end product meets the customer requirements. Since the pressure valve is a standard piece of equipment for the high pressure boilers, the change in customer needs is minimal whilst the frequency of customer demand can vary. This makes it clear that through identifying the customer demand and the time scales required to deliver the product at the client site for installation can be recorded for the production process.
The pressure valve plug comprises of two major elements. The pressure measurement unit and the steam chamber. The pressure measurement unit comprises of the pressure plate, diaphragm, meter and the compression chamber. The steam chamber on the other hand comprises of the steam circulation unit and the pressure plug that is used to control the steam flow and pressure inside the boiler.
Task:
Design a JIT manufacturing system and a Kanban table to help streamline the above production process that can help the business manager of the branch to improve the production methods of the branch.
Good Practise Guidance:
The JIT method is to identify the key stages in the overall production process and the dependencies (i.e.) those tasks that should be completed before starting another task.
The list of actions required for the above mentioned task include
Stage identification
Identify dependencies
Identify the raw materials required and the lead-time for each stage.
Assign lead-time, completion time and the company's safety lead-time, workshop capacity, demand rate, target down time and the actual down time in the manufacturing process.
Use a computer assisted software to produce a Kanban board that presents the number of Kanbans in a RAG matrix format.