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ABSTRACT
This project was commissioned to study the feasibility of one of the most complex and representative core products of SCL ( provides aluminium and magnesium castings for the automotive industry globally) by comparing its current operations in a centralized model, to a future state in a de-centralized housing model. The method for doing this was Value Stream Mapping, a Lean manufacturing methodology to identify non-value-added activities along the processes, and reduce Lead Time (LT) ,costs by removing those wastes and man power reduction.
It is important to mention that, although most of the information in this report corresponded to real data, some assumptions were made, given constraints such as time and the fact that, by the time this report was written, the company was yet working on some of the projections for the future business model.
Through the development of the project, Value Stream Maps (VSM) for the family product of CUMMINS (ISX Flywheel) were documented on its centralized and de- centralized logistics, main wastes and non-value-added activities were identified, as well as considerations for improvement were raised. This report also shows a basic simulation model of how the VSM would looks like in an improved state, and how each scenario differs from the others. Results showed risks of the future decentralized logistic model of the company regarding complexity of operations planning and inventory management, as well as it describes how successful could it be in terms of a shorter lead time and to increase the Process ratio if an action plan were implemented.Our project focuses on creating current and future state value stream maps which, when implemented, will decrease the current lead time as well as provide recommendations to improve current operations within the company.
CHAPTER:1
1. INTRODUCTION
1.1ABOUT THE COMPANY
The TVS group was established in 1911 by Shri.T V Sundaram Iyengar. Sundaram Clayton Limited (SCL) is part of the $6.5 billion TVS group, one of the largest auto components manufacturing and distribution group in India. SCL is a leading supplier of aluminium die castings to automotive and non-automotive sector.
Since commencing operation in 1962, SCL has achieved many milestones and emerged as one of the preferred solution provider in machined and sub-assembled aluminium castings.
Our contribution commences from early design stage to development and supply of finished product. Over the years, we have built strategic partnership with global OE / Tier one.
With the robust manufacturing driven by TQM, TPM, Lean practices and investments in state of the art technologies, SCL is poised to serve the future needs of the industry in light metal castings.
The company is located near the padi flyover,Chennai and other locations are mahindhra world city,oragadam and hosur.
1.2 PRODUCT RANGE:
Flywheel housing
Gear housing
Clutch housing
Lube oil cooler cover assembly
Turbo charger
Intake manifold
Fuel pump housing
Cylinder head
A/C compressor housing
Air connectors
Cylinder head cover
Fuel tank housing
Crank case
Wheel head
Adoptor oil filter
Filtration module casting
Fork gear shift
Lube oil cover
Compressor cover assembly
1.3 CUSTOMERS:
The TVS Group, with a turnover of over one billion dollars, is the largest manufacturer of automotive components in India.
CARS/HEAVY VEHICLES:
CUMMINS
General Motors
FORD
DELPHI TVS
TATA Motors
VOLVO
HYUNDAI
RENAULT TRUCKS
HONDA
MERCEDEZ BENZ
DAIMLER INDIA
VISTEON
TURBO TECHNOLOGIES
PROJECT DESCRIPTION
WHAT IS VALUE STREAM MAPPING ;
“Developed during the work conducted by Taiichi Ohno at Toyota in the 1960’s and 70‘s, at its basic level VSM is a systematic methodology to identify wasted time and actions in a manufacturing process. In more recent times VSM it has been used to re-engineer businesses because it identifies unnecessary effort and resources to permit simplification and streamlining of operations processes. It is useful to explain the meaning of several key concepts used in VSM. These are: what waste is, what constitutes value-adding, along with what is needless non-value-adding and what is necessary non-value-adding. VSM is used to investigate processes to identify improvement opportunities lying in their wastefulness and lack of fluidity.
Waste is one of the seven wastes identified by Toyota. These are:
Overproduction: items for which there are no orders.
Waiting Time: Employees standing about. Inventory at stand-still.
Unnecessary Transport: Moving material unnecessarily or long distances.
Over-processing: Using more steps to produce a product than necessary.
Excess Inventory: Retaining unnecessary inventory between process steps.
Unnecessary Movement: Any wasted motion by man or machine.
Defect: Making incorrect product.
Value is from the customer’s perspective, the customer being the person who uses the output. Value-adding actions and resources are those which create value for the customer. Non-value-adding is everything done in the process which contributes no value for the customer but which they are forced to pay for when they buy the product or service. Necessary non-value-adding are those actions in a process that must be done to make the product but create no value for the customer. Unnecessary non-value-adding is removed and necessary non-value-adding is minimized to the least possible.
2.1 Value Stream Mapping Methodology
In VSM we follow a process from start to finish monitoring and measuring what happens within, and between, each process step. For each process step we record the variety of resources used in the step, the amount of their usage and the range of times each resource is in use as a block of information specific to that step. The measured variables are collected together in a ‘variable block’.
From the information collected during data gathering the process is drawn as a flow diagram showing the times and resources used at each step and the time delay between each step.
This diagram is called the ‘current state map’. Inventory movements between steps are identified by the ‘I’ inside a triangle. Under the triangle is noted the range of times the inventory can take to be moved. A visualization of the location of value-add and non-value-add steps is presented as a line across the bottom of the page which jumps up during value-adding step and stays low for all other times. The current state map is scrutinized step by step to identify which of the functions and actions performed in the step/process add ‘customer-value’ and which do not. The non-value-adding actions and resources are analyzed to find where they can be minimized through time-saving and cost-
saving improvements. A secondary benefit of timing the process steps and measuring the rate of throughput is identification of the bottleneck steps. The bottlenecks can be redesigned to lift their capacity and so increase the output rate of the whole process. The reengineered process is drawn on a new flow chart known as the ‘future state map’. It shows all the steps and information flows in a redesigned, simplified and more efficient process.
2.1.1 Investigation
VSM requires spending time in the workplace recording the details of people, product, equipment and information movements. It is necessary to record and time the range of variables that occur in each process step during the operation. It also requires viewing written records related to the process in order to record dates, quantities, delays, stoppages, breakdowns, operating decisions, absentees, etc that
impacted on the performance of the operation during the period being analyzed. The believability of the analysis is only as good as its completeness of its content and the truthfulness and honesty it contains. When there are provable facts extracted from documented evidence and recorded site observation there can be belief in the findings from the investigation.
2.1.2 Analysis
The worth of VSM becomes self-evident during the analysis phase. Once a business or manufacturing process is drawn as a series of steps and described in numerical terms, the inherent oddities and inconsistencies become evident. The first analysis performed is to compute a ratio of total customer-value-adding time to total process time to see how customer-effective the process is. Often this figure is in the single digits. A low customer-value-adding ratioindicates a process design
without the customer’s wishes being considered. The fortunate aspect of non-customer-oriented processes is the great scope offered to cut big amounts of waste
and cost from them. Other important factors to identify during the analysis are the variability between good and poor performance in each of the process steps and the time that inventory is standing still between steps. Poor inventory speed is an indicator of too much work-in-progress not leveled to the bottleneck rate. The problems identified in the process are quantified in terms of the customer-non-value-adding time they take.
2.1.3 Identifying Improvements
Opportunities for improvement readily present themselves as the analysis is conducted. When developing proposals it is ideal if that the users of the process are included in identifying the solutions so they take ownership for the future implementation. During the analysis simplifications in process steps are identified, procedural changes to stop wasted actions show themselves, and equipment and process modifications needed to increase throughput rates become evident. The selected improvements are included in the redesigned ‘future state map’ of the process.” (Sondalini.2009)
2.2 PROJECT BACKGROUND
SCL was drastically modifying its business model, which between others, included a reduction of its products range in order to simplify its operations, a downsizing of
its production facilities and a re-design of its supply chain for its core products. This reengineering process implied a study of the core products in the current state
Value Stream compared to a future state Value Stream in a centralized and decentralized product model.
The project consisted of analyzing the manufacturing operations of the company as well as its process flows and supply chains, to define its different type of wastes and actual value-added time, in order to identify potential Kaizens for the company to improve its performance and reduce its costs and total Lead Time.
Expected outcomes from the project were as follows:
Identified organizational processes or activities as potentially wasteful
The value chain broken down into its constituent processes/activities
Established relationship between processes/activities
Estimated average working time required to complete each process/activity
Identified average waiting time between processes/activities
Calculated total working time, wasted time, and efficiency
Analysis of current and future state model
Optional: A "what if?" alternative (a second such picture, "optimal future state )
2.3 VSM PROJECT IMPACT OVER COMPANY’S STRATEGY :
2.3.1 Data collection:
For collection of times and distances data at the plant, I adapted the standard tool of Process Flow Diagram (PFD) to the specific needs of the company and the project (see Appendices 2 to 7) to use it for on-site inspections. Other information was obtained from the MFG-Pro (organizational MRP software) consultations, functional performance reports, documented records, photos, videos, interviews
with processes responsible and finally, some assumptions were made, mainly regarding future projections and an improved state
2.3.2 Process analysis and Mapping:
Collected data were typed into spreadsheets as well as the drawing of the VSM. I decided to utilize MS Excel, given the ease to link processes data from PFDs to the VSM as well as between the different scenarios of the VSM through the formulation of the cells. Therefore not only VSM picture, but a basic model was created to modify according to the business needs and to be used on upcoming events and other core family-products. Nevertheless, this information could be easily incorporated into a MS Visio file or an Arena simulation.
2.3.3 Review and validation:
Periodical reports for review were e-mailed to Sebel's Supervisors, as well as several meetings were held for progress validation.
2.4 DESCRIPTION OF THE EXISTING PRODUCTION SYSTEM
The work is carried out in a flywheel manufacturing unit. The various divisions in this unit are Industrial flywheel division which manufactures variety of engine housing products.
Flywheel housing division dedicated for containers, engine housing of the heavy trucks and buses. This will enhance the scl to rank in the first place globally,
The division selected is flywheel housing that is dedicated for industrial trucks. This division manufactures flywheel housing of different capacities.After through study of the system, a brain storming session has been made for selection of the flywheel, for establishing lean. The battery identified is Product X because lead time is more. The objective is to use value stream mapping to first map the current state and then to identify sources of waste and to eliminate this waste, to meet customer requirement.
2.5 CURRENT STATE MAP FOR EXISTING SYSTEM:
A value stream is all the value added and non value added activities currently required to bring a product through the main flows essential to every product:
The production flow from raw material into the arms of the customer,
The design flow from concept to launch.
This work looks at the production flow from customer demand back through raw material. Value stream means working on not just individual processes, and improving the whole. It will go all the way from molecules into the arms of the customer;
there will be a need to follow the value stream for a product across many firms and even more facilities. This paper work concentrates on the production flow of a dedicated process, including shipment to the plant’s customer and delivery of supplied parts and material, where future state vision is designed and start implementing it right away. Value stream mapping is a pencil and a paper tool that helps to understand the flow of material and information as a product makes its way through the value stream. Value stream mapping can be a communication tool, a business planning tool, and a tool to manage the process. Value Stream Mapping initially follows the steps shown below. The first step in the drawing is the current state, which is done by gathering information on the shop floor. This provides the information that is needed to develop future state. Future state ideas will come up while mapping the current state. Likewise, future state will often point out important current-state information that is overlooked. The division selected is flywheel housing that is dedicated for industrial flywheel. This division manufactures flywheel housing of different capacities.After through study of the system, a brain storming session has been made for selection of the battery, for establishing lean. The battery identified is Product X because lead time is more. The objective is to use value stream mapping to first map the current state and then to identify sources of waste and to eliminate this waste, to meet customer requirement.
About CUMMINS company:
Cummins is a global power leader that designs, manufactures, sells and services diesel engines and related technology around the world. Cummins serves its customers through its network of 600 company-owned and independent distributor facilities and more than 7,200 dealer locations in over 190 countries and territories.
Cummins Inc. is organized into four distinct but complementary business units:Cummins Engine Business manufactures and markets a complete line of diesel and natural gas-powered engines for on-highway and off-highway use. Its
markets include heavy-and medium-duty truck, bus, recreational vehicle (RV), light-duty automotive and a number of industrial uses including agricultural, construction, mining marine, oil and gas and military equipment. Cummins Engine Business also provides a full range of new parts and services and remanufactured parts and engines through an extensive distribution network.
Cummins engines range in size from the ISF2.8 to the QSK95. For more information, visit the Cummins Engines website.
Cummins Power Generation Business is a global provider of power generation systems, components and services in standby power, distributed power generation, as well as auxiliary power in mobile applications to meet the needs of a diversified customer base. Cummins Power Generation also provides a full range of services and solutions, including long-term operation and maintenance contracts and turnkey ,Cummins Power Generation products include diesel and alternative-fueled electrical generator sets from 2.5 to 2,700 kW, alternators from 0.6 KVA to 30,000 KVA, transfer switches from 40 amps to 3,000 amps, paralleling switchgear and generator set controls. For more information, visit the Cummins Power Generation
The Components Business Segment consists of four businesses: Cummins Filtration, Cummins Turbo Technologies, Cummins Emission Solutions and Cummins Filtration designs, manufactures and distributes heavy-duty air, fuel, hydraulic and lube filtration, chemicals and exhaust system technology products for diesel and gas-powered equipment. For more information, visit the Cummins
Cummins Turbo Technologies designs and manufactures turbochargers and related products, on a global scale, for diesel engines above 3 liters. For more information, visit the Cummins Turbo Technologies website. Cummins Emission Solutions is a global leader in designing, manufacturing and integrating exhaust aftertreatment technology and solutions for the commercial on and off-highway light-duty, medium-duty, heavy-duty and high-horsepower engine markets. Dedicated to innovation and dependability in meeting global emission regulations, Cummins Emission Solutions develops and produces various emission solutions designed to meet the highest emissions standards worldwide. For more information, visit the Cummins Emission Solutions website.
Cummins Fuel Systems designs, develops and manufactures new fuel systems and remanufactures electronic control modules in the United States. In Mexico, it remanufactures Cummins fuel systems and others. This business services engines ranging from 9 to 78 liters.
Cummins Distribution Business drives a comprehensive global distribution strategy and channel management. Capitalizing on synergies in parts and services, this business helps Cummins by providing outstanding support to our customers, while growing a less cyclical and less capital intensive business.
The business consists of 17 company-owned distributors and 10 joint ventures, covering 90 countries and territories through 233 locations.
Through this network, trained personnel sell and distribute Cummins-branded products, related services and broader solutions such as maintenance contracts, engineering services and customized integrated products. For the Cummins distributor nearest you, visit the Cummins service and parts locator online.
3.2 ABOUT FLYWHEEL:
A flywheel is a rotating mechanical device that is used to store rotational energy. Flywheels have an inertia called themoment of inertia and thus resist changes in rotational speed. The amount of energy stored in a flywheel is proportional to the square of its rotational speed. Energy is transferred to a flywheel by the application of a torque to it, thereby increasing its rotational speed, and hence its stored energy. Conversely, a flywheel releases stored energy by applying torque to a mechanical load, thereby decreasing the flywheel's rotational speed.
Common uses of a flywheel include:
Providing continuous energy when the energy source is discontinuous. For example, flywheels are used in reciprocating engines because the energy source, torque from the engine, is intermittent.Delivering energy at rates beyond the ability of a continuous energy source. This is achieved by collecting energy in the flywheel over time and then releasing the energy quickly, at rates that exceed the abilities of the energy source.
Controlling the orientation of a mechanical system. In such applications, the angular momentum of a flywheel is purposely transferred as a torque to the attaching mechanical system when energy is transferred to or from the flywheel, thereby causing the attaching system to rotate into some desired position.
Flywheels are typically made of steel and rotate on conventional bearings; these are generally limited to a revolution rate of a few thousand RPM.[1] Some modern flywheels are made of carbon fiber materials and employ magnetic bearings, enabling them to revolve at speeds up to 60,000 RPM.[2]
Carbon-composite flywheel batteries have recently been manufactured and are proving to be viable in real-world tests on mainstream cars. Additionally, their disposal is more eco-friendly.
Flywheels are often used to provide continuous energy in systems where the energy source is not continuous. In such cases, the flywheel stores energy when torque is applied by the energy source, and it releases stored energy when the energy source is not applying torque to it. For example, a flywheel is used to maintain constant angular velocity of the crankshaft in a reciprocating engine. In this case, the flywheel—which is mounted on the crankshaft—stores energy when torque is exerted on it by a firing piston, and it releases energy to the crankshaft when a piston is in the process of compressing a fresh charge of air and fuel. Other examples of this are friction motors,
which use flywheel energy to power devices such as toy cars. In uses like this, the distribution of the mass of the flywheel toward the outside and away from the center is beneficial. Pushing the mass away from the axis of rotation gives it greater angular velocity, therefore giving the flywheel greaterrotational inertia without increasing its total mass. This gives a greater ratio of rotational inertia to mass, increasing the efficiency of the flywheel, since it does not have as much difficulty driving its own weight forward as well as that of the payload.