Lean Operations and Six Sigma

Module Title Lean Operations

The customer’s expectations

You have been employed as a consultant to implement Lean within Evenort, a business providing bespoke flanges to the oil and gas industries. You have Eleven weeks to consider all of the available material. After which you are required to produce a written document detailing Lee’s options. (Resigning is not one of them!)

Task:

Review the literature giving detailed examples of where within industry Lean has been applied, the strategies followed when implementing, the benefits achieved and whether there are any lessons to be learned.
Create a future state Value Stream Map.
Propose approaches which can feasibly be considered when implementing lean manufacturing principles within Evenort. Stating where the most benefit would be gained. Are there any tools and techniques which you would not implement?
The key to successfully introducing Lean is to ensure buy-in from all employees. To this end you are required to produce a detailed plan. State what tools and explicitly where would implement them to ensure that the maximum benefits were gained from implementing Lean within the business.
Create an implementation plan including a discussion about how you would implement the lean tools you have selected, as well as the anticipated benefits.

Conditions of Assessment

· To be completed on a wholly individual basis.

· It is expected that some of the information which you consider necessary to complete this assignment has been omitted and as such you will need to make a number of assumptions. State all of the assumptions you have made in completing this assignment.

· Your work should be appropriately and correctly referenced. If you are unclear of how to reference your work please seek guidance from the Learning Centre.

· You are expected to write 3000-5000 words.

· This assignment is worth 50% of the total assessment load.

· Late submission will result in a zero mark being awarded in common with standard university regulations.

Contents

.docx#_Toc308694706″>Assignment 2b (Individual Assignment) (2011)1

.docx#_Toc308694707″>The customer’s expectations.1

.docx#_Toc308694708″>Conditions of Assessment1

.docx#_Toc308694709″>Scenario.3

.docx#_Toc308694710″>Context4

.docx#_Toc308694711″>General Company Background.4

.docx#_Toc308694712″>The Production Process.4

.docx#_Toc308694713″>Examples of typical products (flanges).5

.docx#_Toc308694714″>Facility Layout6

.docx#_Toc308694715″>Product route.7

.docx#_Toc308694716″>Current Value Stream Map.9

.docx#_Toc308694717″>Appendix.10

.docx#_Toc308694718″>Current Value Stream Map.16

.docx#_Toc308694719″>Flange Production: Saw Cutting Process Data.17

.docx#_Toc308694720″>Administrative Process.18

.docx#_Toc308694721″>Marking Scheme.19

Table of Figures

.docx#_Toc271705814″>Figure 1 Aerialphotograph of Evenort. (Building with white roof.)3

.docx#_Toc271705815″>Figure 2 0.75″ Diameter Flange.5

.docx#_Toc271705816″>Figure 3 16″ Diameter Flange.5

.docx#_Toc271705817″>Figure 4 Shop Floor Layout.6

.docx#_Toc271705818″>Figure 5 Production Route 1.7

.docx#_Toc271705819″>Figure 6 Manufacturing Process and Product Route.8

.docx#_Toc271705820″>Figure 7 Current Value Stream Map.9

.docx#_Toc271705821″>Figure 8 Product Route 1.11

.docx#_Toc271705822″>Figure 9 Product Route 2.12

.docx#_Toc271705823″>Figure 10 Product Route 3.13

.docx#_Toc271705824″>Figure 11 Product Route 4.14

.docx#_Toc271705825″>Figure 12 Some ideas for improving the site.16

.0/msohtmlclip1/01/clip_image002.jpg” alt=”http://109.170.208.152/Web%20Portal/Evenort/Images/main_top_banner.gif”>

Scenario

Manufacturing and logistics industries involve the movement of physical items through a series of processes and acted upon by discrete resources. Being aware that industry is under constant pressure to provide high quality, timely products while utilising the minimum of resources you are required to research and apply appropriate Lean Tools and techniques within Evenort, a small manufacturing business situated based in South Yorkshire. Thereby helping the business better identify and remove waste. Below, Figure 1, is an aerial photograph of Evenort’s premises. It should be noted from the photograph that there is little room for expansion as there is a train track behind the factory and buildings on either side. It may be possible to extend the building towards the main road if required.

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Figure1Aerial photograph of Evenort. (Building with white roof.)

Context

In 2009 as the world’s economy was in the midst of recession Evenort, an SME based in South Yorkshire, was seeking to increase efficiency within the business through implementing a process improvement strategy. In conjunction with Sheffield Hallam University a Knowledge Transfer Partnership was entered into providing the opportunity to change. Lee, the Knowledge Transfer Associate having an awareness of Lean, 6 Sigma, and discrete-event simulation has the opportunity to make significant improvements to the bottom line of the business; but before making any change to the business he must first identify what improvements could be made and devise a strategy for making those improvements. What could, where would you and in what order would you implement changes? Make your recommendations.

The Evenort Case is intended for using on a process improvement course. The normal participant is recent graduate who may be taking this module on a full or part-time basis and has little prior exposure to the practical side of process improvement.

General Company Background

Incorporated in Sheffield in 1982, Evenort is currently situated over two sites. The Head Office and main manufacturing site is at Houghton Road, Dinnington, Sheffield, S25 4JJ, UK. With its plasma cutting workshop based at: Shop 12, Robert Jenkins Works, Wortley Road, Rotherham, S61 1LT, UK.

Evenort’s commitment to manufacturing excellence has established the company as a reliable partner in the processing of Stainless Steel. Evenort’s business proposition is to supply high value bespoke products, typically flanges, produced within 24hours of order, to the highest quality standards and manufactured from alloys appropriate to the environment, be it sour or acidic. As such their products are often used in the oil and gas industries.

The Production Process

Evernort offers a range of products and services which includes:

· Steel & Alloy Flanges

· Bar Processing

· Advanced Manufacturing

· Deep Water Shipments

· Plasma Cutting

However, the focus of this case study is Evenort’s Head Office where flanges are machined, either from cut bar or semi finished castings.

Semi finished forgings are usually purchased from Hilton Metal Forging Ltd. based in India of whom Evenort owns a substantial share of and is the official UK agent.

Examples of typical products (flanges).

The flanges come in a variety of sizes but typically range in size from 98mm Dia to 597mm Dia and are manufactured from stainless steel.Figure 2 andFigure 3 illustrate and provide schematics of the products.

0.75″ ASA 150LB RFSO 316/L

.0/msohtmlclip1/01/clip_image005.jpg” alt=”0.75″ asa 150lb rfso 316/l”>.0/msohtmlclip1/01/clip_image006.jpg” alt=”Drawing for 0.75″ asa 150lb rfso 316/l”>

Dimensions in mm

D

K

L

C

N

H

B

R

O

F

No.Holes

98

69.8

15.9

12.7

38

15.9

27.7

3

42.9

1.6

4

Figure2 0.75″ Diameter Flange

16.00″ ASA 150LB RFSO 316/L

.0/msohtmlclip1/01/clip_image007.jpg” alt=”16.00″ asa 150lb rfso 316/l”>.0/msohtmlclip1/01/clip_image006.jpg” alt=”Drawing for 16.00″ asa 150lb rfso 316/l”>

Dimensions in mm

D

K

L

C

N

H

B

R

O

F

No.Holes

597

539.8

28.6

36.5

457

63.5

410.5

9.5

469.9

1.6

16

Figure3 16″ Diameter Flange

Facility Layout

The manufacturing facility has grown and expanded as demand for specific products has increased. This led to equipment being purchased and located where there was space, which Lee thinks may or may not be in the best location from a process efficiency point of view. The current layout can be seen inFigure 4.