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LEAN 
CELL DESIGN 
FINAL PROJECT PART C 
Project By 
Rohan Naik --5009-5130 
Aditya Kamble -- 5009-4898 
IE-400/564 – Lean Enterprise
Weights 0.3 0.2 0.2 0.2 0.1 1.0
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
A1 B1 A2 B2 
C 
OP1 OP2 
OP6 OP5 
F E D2 D1
TAKT=82 TAKT=82 
PCT=62 PCT=70
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
 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
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.
Project Part C By: 
Rohan Naik – 5009-5130 
Aditya Kamble – 5009-4898

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Lean Cell Design -Presentation project part c rohan naik & aditya kamble

  • 1.
  • 2. LEAN CELL DESIGN FINAL PROJECT PART C Project By Rohan Naik --5009-5130 Aditya Kamble -- 5009-4898 IE-400/564 – Lean Enterprise
  • 3.
  • 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
  • 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.
  • 11.
  • 12. Project Part C By: Rohan Naik – 5009-5130 Aditya Kamble – 5009-4898