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Universal Valve Company Capacity Exercises. Universal Valve Company –Plastics Value Stream Value Stream Map Current. How to Calculate Capacity. Capacity analysis provides an overview of how effectively you use time in each cell . The time is categorized as either:
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Universal Valve Company –Plastics Value StreamValue Stream Map Current
How to Calculate Capacity • Capacity analysis provides an overview of how effectively you use time in each cell. • The time is categorized as either: • “Productive Capacity” – making “good” parts; • “Non-Productive Capacity” – time lost to non value-adding activities; • “Available Capacity” – time available for use. • Total Available time (seconds) = Number of shifts run per day x Crew per shift x (hours worked per shift x60 x 60) x Working days in week x 3,600 seconds
How to Calculate Capacity 2 • Productive time is: Number of "good quality" parts produced x average cycle time (seconds) • Productive Capacity = productive time/ total available time x 100% • Non-Productive time is: • Time lost to scrap (seconds) = quantity scrapped x average cycle time (seconds) • Time lost to downtime (seconds) • Time lost to changeovers (seconds) • Time in meetings/ 5S (seconds) • Non-Productive Capacity = Non-Productive time/ total available time x 100% • Available Capacity = 100% - (Productive Capacity + Non-Productive Capacity)
Value Stream CapacityScenario 1 Week 28 • You are the management team of the Universal Valve Company. • The Plastics Value Stream at the Universal Value Company comprises four cells. • Weekly cell performance measures have been established for each cell and a box score has been implemented for the Value Stream. This data is given on the next slide. • Your task: • Calculate the capacity of each cell in the Value Stream. • What capacity figures would you use in your Value Stream box score ?
Value Stream CapacityScenario 2 Week 29 • Things move fast in the Plastics Value Stream and in Week 29, improvement activity has already generated a number of improvements: • Average set-up time has been reduced by 75%, though the number of set-ups has increased to allow smaller batches. • Improvements in standard work have improved the first time through in each cell (reducing scrap). • On-Time delivery has improved. • Downtime has been reduced. • Your task: • Calculate the impact of the improvements - Capacity in each cell; and Box Score: impact of reduction in scrap. No other costs are saved at this time.
Value Stream CapacityScenario 3 Week 30 • In Week 30, your sales team comes to you with an immediate order for an additional 10,000 pieces at $1.50 per piece. Should you take the order ? • A member of staff is redeployed from the Machining Cell to Assembly to provide the necessary capacity. This has no cost impact. • Your task: • Calculate the impact of the improvements - Capacity in each cell; and Box Score: additional sales.
Value Stream CapacityScenario 4 Week 31 • In Week 31, you make further improvements. Scrap and downtime are further reduced, and improvements are made to set-up times and downtime. • You are able to reduce the amount of space that the Value Stream occupies - resulting in a 20% reduction in energy costs. • Your sales team approach you with an opportunity for further sales of 20,000 pieces at $1.50 per piece. This would entail employing 4 additional staff in the Assembly cell at a total additional cost of $5,000 per week. • Your task: • Calculate the impact of the improvements - Capacity in each cell; and box score.
Value Stream CapacityScenario 5 Week 32 • In Week 32, you have the option of making some radical transformation: • You can either combine cells 1 and 2; or combine cells 3 and 4. For resourcing and technical reasons you cannot make both changes. • Either change will improve FTT, cycle times, and OTD; and will reduce space and energy costs. There will be no impact on sales. • Your task: • Decide which change should you make. • Calculate the impact of both improvements and choose which is the best to make first. Review the impact on capacity in each cell; and the Box Score.
