This is a short presentation on Lean using Cell Design techniques and operator balance Chart.

2. LEAN
CELL DESIGN
FINAL PROJECT PART C
Project By
Rohan Naik --5009-5130
Aditya Kamble -- 5009-4898
IE-400/564 – Lean Enterprise

4. Weights 0.3 0.2 0.2 0.2 0.1 1.0

5. Alternatives # of
Change
Overs
# of
Workers
OEE #
WorkStati
on
Stage Total
Investme
nt
Profit Per
Day
Pay back
Period
(Days)
2 Change Over
Case
2 7 0.75 9 Current $9000 $142 43.25
Minimize
Inventory
4 9 0.5833 13 1 $16,000 $142.21 62.62
3 Change Over
Case
3 6 0.90 9 3 $9010 $142.68 43.25
Minimize
Work Station
1 6 0.97 9 3 $9000 $142.68 43.20

6. A1 B1 A2 B2
C
OP1 OP2
OP6 OP5
F E D2 D1

7. TAKT=82 TAKT=82
PCT=62 PCT=70

8. At the 3 Sigma Level, We find :
Average Std Deviation Sigma Level Demand
X- Demand 174 5.9 3 192
Y- Demand 175 9.5 3 204
Total 349 11.9 3 385
The Average Cycle time we Take as 60 (since X is at 60 and Y is at 70 and they are approx. equal)
At 3σ, Max Demand = 385 and corresponding planned cycle time = 64
This Suggest that we can handle fluctuations up to 3σ levels and meet the demands.
Operating at PCT minimizes inventory
Working days considered for calculations

9.  Revenue / unit: X = $2.75,Y = $4.00
 Material Costs / unit: X = $1.50,Y = $2.00
 Labor Costs / unit: X = $0.96,Y = $1.09 Expected profit for the year = $52,427.50
 Total Unit Cost: X = $2.46,Y = $3.09
 Profit / unit: X = $0.29,Y = $0.91
 Cost of workstations = $9,000
 Stage III Improvement Costs = $12,000 Investment cost = $ 31,485.50
 Payback period = 43 Days
 Annual Savings / Annual Cost
 Annual Savings based on inventory carryover cost savings and operator savings = $20942
Profit per day =$ 142.65

10. Cell-based design for Operations A to F:
 Achieved main objective
 Minimized floor place
 Minimize inventory
 Minimize number of Operators : 6
 Minimize number of Workstation : 9
 Maximum space for additional product families
 Additional Value Stream Improvements:
 Supermarket-based finished goods delivery and at injection molding
 Plastic raw material delivery from 1 /week to 1 /day.
 Changeover time improvements at Injection Molding from 60 to 30 minutes.

12. Project Part C By:
Rohan Naik – 5009-5130
Aditya Kamble – 5009-4898