Value Stream Mapping of Atlas Copco CTO India
The Construction Tools & Organization (CTO) division of Atlas Copco India is growing and demonstrating positive business results, however, it is faced with challenges due to rapid growth. The production lead times are 25-30% longer than its sister factory in Kalmar, which causes excess inventory and unnecessary costs. There is a need for investigating how lead times can be reduced.
The aim of this study was to develop suggestions on how production lead times can be reduced. The study used concepts of Lean Management and the Value Stream Mapping tool to analyze and examine value and non-value adding activities, to reduce wasteful operations, to improve quality within processes and to simplify and standardize working methods. Delimitations were set to investigate one single product component and product type; the CP1230 Breaker and CP1230 cylinder. Research approach was of deductive method, information gathering was done in the form of literature review, personal observations and interviews, i.e. qualitative and quantitative methods were used to reach the objectives.
The analysis highlighted over-processing, excess transportation and inventory issues in the material flow and the following suggestions were concluded:
• Enhance employee satisfaction by rotating personnel in different stations.
• Visualize work methods and weekly planning on approachable boards to standardize work and ensure quality of outcome.
• Reduce and eliminate inspection processes by training suppliers and sub-contractors in quality assurance.
• Sequence material in honing operations to reduce change-over times.
• Outsource heat treatment operations to save resources and lead time.
The following recommendations would allow for a 24,6% or 68,3% reduction in lead time, depending on choosen solutions, according to the authors’ estimations.
The study was a part of the MG202X: Master Degree Project in Industrial Engineering and Management of the Royal Institute of Technology and was conducted in Atlas Copco Nasik, India and Stockholm, Sweden. On-site analysis lasted for 12 weeks and the thesis was finalized in Stockholm for a total duration of 30 weeks.
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