MEAGAL STELPLAST : STEERING A

NEW PATH

CASE STUDY – OPERATIONS MANAGEMENT

Objective
• To improve the performance of MSL
• To improve productivity
• To remove the drawbacks and to establish the firm

Pros
• Wide range of products
• Relationship with employees
• Low attrition rates

Cons
• Orders are produced only after customer demands. No forecasting done
• Demands from customers were unpredictable
• No brand value
• There was a competitor who had more productivity with similar kind of factory set up
 Process Flow Diagram for MSL Horn
Production

35 Seconds*

Process Flow based on Exhibit 6

1 – Coil Assembly = 2 minutes
2 – Housing Ready = 2 minutes
3 – Housing Assembly = 5 minutes
4 – Diaphragm Assembly = 2 minutes
5 – Final Assembly = 4 minutes
6 – Stud and Bracket fitted on Final Assembly = 2 minutes
7 – Testing = 4 minutes
8 – Final Testing = 2 minutes ( a lag of 4hrs)
9 – Packing = 5 minutes
Process Flow Diagram CLASSIC HERO HONDA

5minutes
2minutes
3. Housing 4minutes
1.1 Coil Winding 1.2 Edge Cleaning Assembly
5. Final
Assembly

2.2 Company
2.1 Burr Cleaning 4. Diaphragm
Stamping
Assembly
2minutes
2minutes

9. Packaging 8. Final Testing 6. Stud and Bracket

(Delay 4 hours) 7. Testing Fitting
7
5 minutes
2minutes 4minutes
2minutes

Process Flow based on Exhibit 6, Operation Time as given in the case

• Cycle time= 5minutes (bottleneck time)
• Hourly capacity = 60/5 = 12 Units per hour.
• Throughput time=2+5+4+2+4+2+5= 24 minutes
• The total utilization of the process:
={((5x(2/5)+2x(5/5)+2x(4/5)))/9} x 100
= 62.22%

Work Duration:
26 days a month, 9 hours per day (Inc. 30 min of lunch; 2 x 10 minutes = 20 minutes of tea break )
Number of workers = 12
Operating time per day = (9hr-50min) = 490min
Working hours/worker = 490*26/ = 212.33hrs

NOTE: it is noted that the process time in the video is different.

Video Reference: https://www.youtube.com/watch?v=aXjEDGq29h0&feature=youtu.be

 Process Flow Diagram - Assuming values from video

44 Seconds 10 Seconds 100 Seconds

3. Housing 45 Seconds
1.1 Coil Winding 1.2 Edge Cleaning Assembly
35 Seconds* 5. Final
Assembly
35 Seconds
10 Seconds 35 Seconds
2.2 Company
2.1 Burr Cleaning 4. Diaphragm
Stamping
Assembly

9. Packaging 8. Final Testing 6. Stud and Bracket

(Delay 4 hours) 7. Testing Fitting
50 Seconds 7
6 Seconds 40 Seconds 20 Seconds
Process Flow based on Exhibit 6, Operation Time based on Video

Cycle time= 100 sec (bottleneck for housing assembly)

Throughput time= 44+10+100+45+20+40+6+50= 315 sec
Maximum Task Time = Throughput time+ Wait time = 315s+4hrs = 14715sec
Utilization= [(44/100) + (10/100) +(100/100)+ (35/100) +(45/100) + (35/100)
+(10/100) +(20/100) + (40/100) +(6/100) + (50/100)]/11 = 36%
Cycle time (Time taken in bottleneck process) = 100 Sec
Output rate = Operating time per day/cycle time= 490*60/100 = 294 units
Sum of task time = 395Sec
Theoretical Min. Number of Station = Sum of task time / Cycle Time = 395/100 = 3.95 = 4
Stations
Worstation Assigned Tasks Revised Timing Idle Time

1 1.1(44) 56

1.2(10) 46

2.1(10) 36

2.2(35) 1 1

2 3(100) 0 0

3 4(35) 65

5(45) 20

6(20) 0 0

4 7(40) 60

8(6) 54

9(50) 4 4

5
Balance Delay = Idle time per cycle x 100 / (Na x cycle time) = 5 x 100/ (4 x 100) = 1.25%
Efficiency = 100% - Balance Delay = (100-1.25)% = 98.75%

Conclusion & Recommendations

• Utilization is less, can be improved
• Can initiate automation for speedy process
• Motivate the existing laborers to produce more output.
• Increase production of high demanding horns and use more quality products