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Abstract

This case is an opportunity to apply the concepts of value stream mapping based on details about a

flange manufacturing facility. Value stream mapping is a fundamental lean tool in which flowcharts are

used to show all steps involved, from making a product from incoming raw materials to the delivery

of finished goods. In this learning activity, use the details provided in this case to construct a present$-$

state value stream map. From this map, identify issues and create a future$-$state value stream map

to address them. Operations management principles, such as takt time, cycle time, Kanban, standard

costing, and inventory control will guide this learning activity.Introduction to the Facility

The $200,000$ sq$.$ ft$.$ facility shown in Figure $1$ has been manufacturing flanges in Indianapolis, IN for the past

$50$ years.Outgoing Logistics

Flanges made in the factory are shipped to the company's distribution center in Muncie, IN $($Figure $2).$ Flanges made in the factory are shipped to the company$$s distribution center in Muncie, IN$.$ The distribution center$$s standing $12,000-$piece weekly production order is issued to the factory through SAP $($enterprise resource planning software$).$ The logistics department arranges for pick$-$up from the factory$$s finished product warehouse every Friday at the end of the production shift for evening delivery to Muncie. Recently, the logistics department at the distribution center has been complaining about excessively long manufacturing lead times as compared to the industry standard of two weeks. Incoming Logistics$$The factory manufactures flanges from steel bars $($Figure $3).$ Each bar weighs $94$ kg and costs USD $88($excluding delivery fee$).$ The steel bar supplier is located in Gary, IN$.$ The bar vendor is capable of delivering every week, every two weeks, every three weeks, and so forth. The purchasing department issues a purchase order $($PO$)$ through SAP for $1,000$ steel bars to be delivered every four weeks. The transportation cost is USD $300$ per truckload. A single truck can carry $20,000$ kgs of bar.