DrEaglePerson668
You have been hired as a consultant specializing in operational…
You have been hired as a consultant specializing in operational transformation at San Diego-based consultancy. You are assigned an engagement for local government transportation and overhaul operation as part of the operations improvement team. The project lead for the engagement has asked that you meet with the shop lead for an engine repair shop and evaluate their use of Lean Thinking and Systems, and to investigate whether integration of the Theory of Constraints would be useful.
On arrival, the shop lead walks you through the 8-step process of engine teardown, cleaning and overhaul:
Engine receipt and teardown: 1 person does 1 engine per week (assume 5 day work week and an 8-hour work day) then waits for 1 week
Parts cleaning: 1 person does 1 engine per week and then waits for 1 week
Evaluation of parts: 1 person does 1 engine per day and then waits for 1 week
Retrieve spares from stock for rebuild: 1 person and then waits for 4 weeks
Engine rebuild: 1 person at 1 engine per week then waits 2 weeks
Engine test: 1 person per 1 day then waits 2 weeks
Engine packaging: 1 person and 1 day then waits 2 weeks
Shipment: 1 person 10 engines per day
1-What is the wait time in weeks?
2.-What is the processing time in weeks?
3.-What is the total throughput time in weeks?
In order to better understand the system you interview the workers and lead to develop an understanding of demand, capacity and utilization…
Each worker can do the following…
Step 1: 2 engines per week
Step 2: 2 engines per week
Step 3: 10 engines per week
Step 4: 10 engines per week
Step 5: 1 engine per week
Step 6: 5 engines per week
Step 7: 4 engines per week
Step 8: 50 engines per week
The shop lead says the County sends one engine per week for repair. But the problem is that with all the budget cuts the County needs to overhaul more engines to get additional life out of them.
4.-What is the capacity utilization at each step of the process?
5.-What is the best-case throughput of the current state?
6.-Just prior to step 5 you count 8 engines as Work in Process. How many weeks do you think it will take to get those 8-engines through the system if working 1-engine per week?
Use the following information for Questions 7-10
The shop lead tells you he has been studying the problem and thinks better software will fix the problem. He is thinking about recommending a buy of a new SAP ERP system that he has read about to increase capacity.
7.-What would you advise on the technology and why?
8.-Is there a better way to increase throughput while reducing operating expense and inventory?
9.- What Lean Thinking ideas might improve throughput?
10.-How might you integrate a “kanban” system?
Reference: Operation Management in the supply chain by Schroeder and Goldstein. Chapter 6-7
