Question
A geographically remote gourmet coffee bean manufacturer has contacted you, a Production Specialist, requesting that you draft a VSM for their facility so that they
A geographically remote gourmet coffee bean manufacturer has contacted you, a Production Specialist, requesting that
you draft a VSM for their facility so that they can better understand their current throughput and operational
performance. This is a brand-new production facility that this organization has custom built to meet the demand of a new
high-volume customer, before the facility was developed, an internal Analyst team sat down and calculated the exact yield
and machinery needed to meet the customer's needs. However, after a month of operation there appears to be a
discrepancy in the required production quantity and the projected productions levels. You have been called in to verify
the work of the Analyst team and determine if they made an error in their calculations.
Unable to physically access the facility, you opted to send your trusted co-worker, Billy Bob, to observe and document the
process as it is completed. During Mr. Bob's time in the facility, he decided to take a series of photos and fill-out his
comments directly next to the captured images to communicate the process more effectively. Unfortunately, Mr. Bob
wasn't familiar with how to format his comments to align to the proper terminology of VSM and has instead written a
series of comments for you to distill the information from. (The information included has not been written in a cryptic
way, the values may simply be presented in a less than desirable unit type for which you will need to translate or
standardize them).
On-site Analyst Observations:
Unit:
When processed, the coffee beans are referred to as a 'unit' of production. The exact measurement was 20Kg of coffee
beans (post-processing) per unit. Therefore, each time a 'unit' is processed, exactly 20Kg of coffee beans were processed.
Facility:
Number of shifts per day: 3
Availability: 8 hours per shift (30-minute time loss to breaks per shift)
Batch Size: 244
Average Demand: 400/day
Weekly Demand: 2000
Raw materials supplier receives an automated electronic communication from our facility, and takes 5 days to ship order
to manufacturing facility.
Process Step 1: Hulling
A single operator runs the coffee bean hulling machine which can
process exactly 20 units per hour.
As the machine requires recalibration and a thorough cleaning
between usage, the resultant setup time is 90 minutes.
Due to the simplistic nature of this machine there is an observed
100% up time.
Before passing to Process Step 2: cleaning approximately 800 units
must be stored in inventory (WIP).
Process Step 2: Cleaning
A single operator runs the filtration basins. Each coffee bean unit is
added to a large filtration device that uses long paddles to spin the
hulled coffee beans, pushing debris and dust off. The unusable
materials will filter through the large mesh sifter base leaving only
cleaned beans that automatically exit the filtration basin into an
attached storage container. For the purposes of this assessment we
will assume that 20Kg of product is still the yield per unit. The
filtration device is rated to process 800Kg of coffee beans per hour.
However, due to the machine becoming clogged with debris,
resulting in the necessity of frequent cleaning, the rated Up-Time of
this machine is only observed to be 80%. Additionally, loading a unit
of beans (Setup Time) into the hopper took 12 seconds for each unit.
Before passing to Process Step 3: Grading 12,000 Kg of product must
be processed.
Process Step 3: Grading
Each unit of coffee must next be placed through a grading device that
will test for acidity, oil consistency and flavonoids. Each unit takes
precisely 1 minute to process with a setup time of 8 seconds per unit.
However, as this device works on compression and heat, the
observed up-time is only 33% and can only be tended to by 1
operator per shift.
8,000Kg's of coffee must be graded (WIP) before we can proceed to
Process Step 4: Roasting.
Process Step 4: Roasting
Mr. Bob requested support from the coffee roaster on how to fill
out this section. These are the values as reported by the roaster
(who just so happened to be a former VSM Expert).
C/T = 133 Seconds per unit
Throughput = 60seconds per min/133 seconds per unit = 0.45 units
per minute
Setup Time = 17 Seconds per unit
Per unit processing time = 133 seconds + 17 seconds = 150 seconds
Up-Time = 75% (22.5 hours @ 75% eff = 60,750 seconds)
Operators = 1
WIP = 400 units
Process Step 5: Packaging
The final step in the process is heavily automated, requiring a single
employee to simply align packaging, allowing the 'feeder machine' to
fill the package, and then heat seal the bag.
Due to the simplicity of this device, a 100% up-time was reliably
observed. To meet daily demand, we need to package and transfer
the daily customer order of 400 units at the same time to Shipping.
This stage had a longer than expected setup time as the company has
opted to subdivide each unit in 20 separate 1Kg bags for resale to
customer. Each of the 20, 1Kg bags, takes 2 seconds to fill and 2.3
seconds to setup.
Shipping
One shipment of 2,000 units per week.
Information Flow:
All communications with customer/raw material producer are electronic.
There is a daily order release to "Step 1: Hulling" and "Step 5: Packaging"
All material is PUSHED.
Tasks:
1) a value stream map and show all rough work for how the data box values were calculated
2) Answer the following group of questions
1. What is the TAKT time for this manufacturing cell?
2. What is the total production Lead Time?
3. What is the total throughput and cycle times for this manufacturing cell?
4. What is the maximum manufacturing capacity per week? Are we able to meet customer requirements? If
we are unable to meet demand, which process failed to meet requirements?
5. What is the process cycle efficiency (PCE)? 6. In under 250 words, clearly describe the purpose of VSM mapping and provide a brief explanation as to how
it would help an organization control processes and capacity manufacturing.
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