Analysing internal logistics network of a manufacturing plant using lean concepts

Abstract

Objective of the Project: The objective of the project is to analyse the existing value stream mapping of the internal logistics process in the XYZ Plant using Lean Management concepts. Through the project, we attempted to apply lean management concepts as value stream mapping, process activity mapping, why-why analysis on the processes and design ideal value stream systematically. Scope of the Project: Our project covers the internal logistics process that is a subset of the manufacturing of the multi-cylinder pumps at the plant. The internal logistics primarily consists of the milk run of kitting of the required components and transporting them from the storage and supermarket areas to the assembly lines of the pumps. Need for the Project: The internal logistics process is considered a necessary non-value added activity. However, being an integral component of the manufacturing process it significantly affects the lead time, production schedule and costs incurred. Particularly in a high-variety sector as multicylinder production, it is imperative to control deviations in internal milk runs in terms of time, quality and human effort. The process being highly labor-intensive requires process standardization and control, yet being a supportive activity it is usually ignored. With the same consideration, the project was taken up to adopt lean management concepts in this process and through the process identify and eliminate hidden wastes. Methodology: The first step in the project involved a collection of data. The data included the production plan for the manufacturing of multi-cylinder pumps. The components involved in the manufacturing of 2,3,4,5 and 6 cylinder pumps. The number of variants of different types of multi-cylinder pumps. The existing value stream map is observed to understand the layout of supermarkets, location of raw material and outsourced components. The time taken for identifying the components, arranging the components in the trolley, movement of a trolley from one supermarket to the other was measured. Manpower details used in the internal milk run of components was taken.