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Reducing Manufacturing Cost through Value Stream Mapping

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To survive in today's competitive world, companies require low costs and high customer service levels. As such,
companies pay more effort to reduce their manufacturing cost. Value stream mapping CVSM) technique has been used on a broad
scale in big companies such as toyato and boeing. This paper considers the implementation of value stream mapping technique in
manufacturing technical spring by railway spring manufacturing company. It focuses on product family, current state map and the
future state map. The aim is to identify waste in the form of non value added activities and processes and than removing them to
improve the performance of the company. Current state map is prepared to describe the existing position and various problem
areas. Future state map is prepared to show the proposed improvement action plans. The achievements of value stream mapping
implementation are reduction in manufacturing cost. It was found that even a small company make significant improvements by
adopting VSM technology. It was concluded that if we adopt the VSM technique the company could reduce the manufacturing
cost from 62.5Cr to 61.88Cr

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Reducing Manufacturing Cost through Value Stream Mapping

  1. 1. International Journal of Advanced Research in Engineering Applications, Volume 1, Issue 1, 1-5, 2014 Reducing Manufacturing Cost through Value Renu Sharma, Sanchaya Goyal, Kamlesh Kushwaha Mechanical Department, MPCT / RGPV university, India Abstract- To survive in today's competitive world, companies require low costs and high customer service levels. As such, companies pay more effort to reduce their manufacturing cost. Value stream mapping CVSM) technique has been used on a broad scale in big companies such as toyato and boeing. This paper considers the implementation of value stream mapping technique in manufacturing technical spring by railway spring manufacturing company. It focuses on product family, current state map and the future state map. The aim is to identify waste in the form of non value added activities and processes and than removing them to improve the performance of the company. Current state map is prepared to describe the existing position and various problem areas. Future state map is prepared to show the proposed improvement action plans. The achievements of value stream mapping implementation are reduction in manufacturing cost. It was found that even a small company make significant improvements by adopting VSM technology. It was concluded that if we adopt the VSM technique the company could reduce the manufacturing cost from 62.5Cr to 61.88Cr. Keywords- VSM, Value stream analysis tool (VALSAT) process activity mapping tool, current stat map, Future stat map. 1 INTRODUCTION Stream Mapping Rail Spring Karkhana is the largest and only dedicated coil spring manufacturing unit of Indian railways. It was set up in 1989 on a turnkey basis by M/S Ernst Komrowski & Co, Germany, a leading spring manufacturing of Germany. Having a turn over of 49 crore , the plant has state of art manufacturing facilities springs from hot rolled spring steel bars. The plant is capable of manufacturing spring with wire diameter up to 60 mm. The plant manufactures 90000-100000 springs per annum. This paper will show how the waste reduction can be made throughout the process by using value stream mapping. It analyses the processes involved in manufacturing and identifies the key areas of wastage and possible solution to overcome them. Value stream mapping is a lean-management method for analyzing the current state and designing a future state for the series of events that take a product or service from its beginning through to the customer. Value stream mapping is a tool that helps to see and understand the flow of material and information as a product and service make its way through the value stream. Hines and Rich (1997) defined seven value stream mapping tools. They are: 1. Process Activity Mapping 2. Supply chain responsiveness matrix 3. Product Variety Funnel 4. Quality filter mapping 5. Forrester effect mapping 6. Decision point analysis 7. Overall Structure Maps Value stream analysis tool (VALSAT) This is the procedure which defined that which tool is suitable for us. In this , the vale stream to be reviewed were identified and through a series of interview with manager they were ranked. The manager were given written overview of each waste and these waste affect the efficiency and profitability . This led to the drawing up of the overall structure of the seven waste and the appropriate tools to use for analysis. www.ijarea.org 1
  2. 2. International Journal of Advanced Research in Engineering Applications, Volume 1, Issue 1, 1-5, 2014 NOTE: H= High correlation and usefulness M= Medium correlation and usefulness L = Low correlation and usefulness The researches then used the identified tools for the major wastes shown in above table to develop the current state map as well as the future state map. So by table I find that as my research is on industrial based so I follow the process activity mapping tool. The aim of this research was to:  Understand the current state map of the manufacturing karkhana .  Identify the key area of waste, problem and opportunities across the karkhana  Develop of ‘future state vision’ of each of the supply chain.  Reducing cost 2. DATA COLLECTION AND ANALYSIS: This section will describe the processes which take place throughout the factory and will identify problems and issues. The processes which take place throughout the factory have been summarized as follows • Take a peeled bar (metal bar). This bar is made up of different composition of metal like Cr, V, Mo, steel etc. • Then end tapered bar supplied to bar heating furnace (prepare for coiling), coiler, oil quenching tank, and tempering furnace. • Then sample check for quench hardness. Coiled and tempered spring are end grinding to provide flat end for proper seating of spring are end grinded to provided flat end for proper for developing residual compressive stress on surface and improving fatigue strength • Shot penned coiled springs are then tested for crack testing by magna flux testing. • Then primer coating, scragging pre load testing and black painting are done. • Rejected part are repitched and hot scragged. • Finally black painted spring is checked for ultimate tensile test and dimensional test table 1 Summary of the data in the current state map for RSK Table 2 Root cause analysis & remedial action • Take a peeled bar (metal bar). This bar is made up of different composition of metal like Cr, V, Mo, steel etc. www.ijarea.org 2
  3. 3. International Journal of Advanced Research in Engineering Applications, Volume 1, Issue 1, 1-5, 2014 •Then end tapered bar supplied to bar heating furnace (prepare for coiling), coiler, oil quenching tank, and tempering furnace. S.N. Process Cause Corrective action plan 1 Tempering Delay in process Parallel inspection process 2 Grinding process Extra time on handling spring Change material handling technique. 3 Primer paint Process layout Change process sequence 3. METHODOLOGY AND IMPLEMENTATION OF VSM The Complete Value Stream Mapping Step Fig No.1.2: Value stream mapping steps (web resource 2) Selection of critical product family A particular product or product family should be defined as the target for future improvement. In our study we choose a helical spring having a diameter of 33mm because this dimension diameter spring is most demandable Current state value stream mapping To construct the current state value stream map, relevant information was collected by interviewing people on the shop floor. As Data relevant to the customer, such as quantity to be delivered, delivery time were observed and information related to the assembly line, such as processing time, inventory storage, inspections, rework loops, number of workers and operational hours per day were collected and documented properly. To complete the value map, a timeline is added at the bottom of the map recording the lead-time and the value-added time. Eventually, the value stream map for the current state is constructed. 4. DATA ANALYSIS Here we analyze the data collected by us Basically improvement/modification is done by us in this section. Here we calculate the value addition percentage in the different process. Also we analyzed the root causes of different problems and suggested their remedial actions. Tempering Alloy steel is not plastic as carbon steel and also more liable to temp. from cracks Further more to overheating and burning. The plasticity increase as increase the temp increase hence alloy steel can be heated safely at higher rates on higher temp. In our study as consent production engineers when bar www.ijarea.org 3
  4. 4. International Journal of Advanced Research in Engineering Applications, Volume 1, Issue 1, 1-5, 2014 is heated at 900 C and then coiling but when it takes more time between bar heating and coiling this result scale formation and this cause spring hardness decrees and pitch dia is reduce. By using parallel inspection and If we use Go and Non Go gauge this rejection could be minimized and saving in cost. % cost saving = 3.10% Grinding process In grinding process most of the time spend on handling of coil from conveyor to machine, in grinding machine in one time four springs is placed. Each spring is placed one by one on machine and unloading one by one by single hook. If we used another handling system which can load 3 or 4 spring at a time. I suggest another handling system which can load four springs simultaneously By using new technique lead time is reduced and cost is also saved Save money = = 403920. Or 0.042cr primer paint Primer paint process is being after shot pining then next process is inspection. In data collection it shows rejection in final pas is 3 to 4 percent. So the rejected parts consume the cost of primer paint also, if we change the sequence of process i.e. primer paint is done after inspection then primer cost related to rejected spring could be reduced. cost of saving in primer paint= 81005rs Or 0.0081005cr Reducing cost by Reduction in rejection Tempering process In current state map there was approximate 3.5% rejection in tempering process and in future state map by applying parallel inspection it reduced and cast saving is 3.1 %. Grinding process In grinding process there was energy consumption cost is 427680 and in future state map it became 403920. Means now cost saving is 5.5%. The lead time is also reduced With some changes in techniques. Primer paint In current state map there was cost of primer paint 83550 and in future state map it became 2550.Means now cost saving is 3% Saving in cost by reducing waste Process % saving Tempering 3.1 Grinding 5.5 Primer paint 3 Total cost saving Total Cost of spring Before after 62.5cr 61.88cr 5. CONCLUSION After analyzing the root cause, process activity charts and results this can be concluded that the main reason for non-value added activities are wrong handling and not proper sequence. Thus it can be concluded that in the plant the wastes is mostly in the form of these activity. The VSM is an effective tool to eliminating the wastes and it also suggests ways to reduce wastage in a manufacturing process. The layout of the plant currently shows a lot of back tracking and it is proposed to modify the layout of the organization. www.ijarea.org 4
  5. 5. International Journal of Advanced Research in Engineering Applications, Volume 1, Issue 1, 1-5, 2014 The root cause analysis sheet shows the reasons of the wastages and also provides their solution. Large reductions in wastage can be achieved just by applying parallel inspection, change in technique and change in process sequence . Most important point is that to improve in process, no new machines were purchased nor were operators expected to work faster or harder; only procedures and layouts were changed to allow the product to flow more smoothly through the manufacturing process. Future state map 6. REFERENCES [1] Melvin , A, Baglee,D (2008) ,”value stream mapping : A dairy industry prospective [2] CM Weber - 2011Characterizing the value of technological knowledge for lean manufacturing [3] D Seth - 2008Application of value stream mapping (VSM) for minimization of wastes in the processing side of supply chain of cottonseed oil industry in Indian context Vol. 19 Iss: 4, pp.529 - 550 [4] Wu, S.; 2009 Wee, H.M.; How lean supply chain effects product cost and quality - A case study of the ford motor company [5] Torres, A.S. Gati, A.M. 2009Environmental Value Stream Mapping (EVSM) as sustainability management tool [6]Charles M . Waber 2011Characterizing the value of technological knowledge for lean manufacturing [7] Punnakitikashem, P..2009; A review of theoretical perspectives in lean manufacturing implementation [8] S.S. Abuthakeer 2010 International Journal of Lean Thinking,”activity based on costing value stream mapping” Volume 1, Issue 2, pp 51-64 [9] Gurumurthy, A. Kodali, R.2007 Performance value analysis for the justification of lean manufacturing systems [10] Shahid mujtaba robert feldt, kai peterson - To identify waste related problems in a software product customization process by using value stream mapping . [11] Guo- qiang Pan , Ding- zhong FENG, Mei – xian JIANg- value stream mapping ia proved as a useful technique to shorten delivery time and reduce production cost www.ijarea.org 5

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