Development of production layout : A proposal of Lean model for a manufacturing company by using Value Stream Mapping

Abstract: A general aim among manufacturing companies is to create a high value for the customer by using few resources and gain profit as a result. Tools and methods from Lean can be used for streamlining the production in order to achieve a resource-effective, flexible, and fast production process. An earlier study has shown that productivity increased by 37% when Lean tools were applied. The aim of Lean is to have a continuous value stream by eliminating waste that does not add any value to the customer. The value stream refers to the processing steps a product passes through from the moment a customer places an order until the finished product whose purpose is being fulfilled. Waste in terms of transportation, inventory, wait, defects in products, and more impairs the flow efficiency. The choice of production layout has an impact on the grade of flow efficiency. Making a suitable placement of machines, inventory areas, shipment positions, and workstations can minimize the number of waste occurrences hence benefit a continuous value stream. The purpose of this study is to design a suitable layout for a newly started manufacturing company. The company does not have a current production facility as its enterprise development is in the start-up phase. The layout is designed for the future production facility that is under planning. The goal is to design a layout with minimal waste occurrences that benefit a continuous value stream. The study is based on literature and data collections. The literature studies include Lean and production systems as the main field. Relevant data were collected through interviews and study visits at similar manufacturing companies around Värmland. The value stream regarding the company will be described through a visual map. This is done by using value stream mapping as a tool from Lean. Various layouts that are considered to be in alignment with the value stream will be designed and discussed. One of these layouts is chosen as being the most appropriate. The results presented a layout and a value stream map with regard to the company’s production process. These were based on a predictable volume of two similar products that were expected to be sold during the first production year. Three scenarios of different production schemes with regard to the presented layout was presented. One production schemed was proved to be the most resource-efficient. This was proved by calculations of machine capacity, the timeframe for production, and customer request. Furthermore, a value stream map of a future workshop and business state was presented. The value stream map provided a comprehensive control over the value stream. However, some data could not be provided. The starting point of this was considered to be unique as there was no current value stream to analyze or judge. Several assumptions, estimations, and simplifications for a future state were, therefore, taken. The presented conclusion of the study was that the layout was designed according to the required manufacturing processing steps. Waste risks were assumed to be low in the presented layout due to a suitable placement of machines, inventory areas, and workstations. Space, material handling, and transportations were being held low hence benefit a continuous value stream. The layout was assumed to be in alignment with the value stream. Recommendations for future work were to make simulations of different layouts before any implementations take place. The value stream map was obtained for future work in order to distinguish value-added and non-value-added activities by adding process data.