Sunwind Ab (a) Case Solution

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Operations Management II

Assignment 2

Total (115) MarksWeightage 15%

|Q1 |Q2 |Q3 |Q4 | |Milling |1 |3 |2259.72 | |Painting |2 |2 |3756.92 | |Riveting, inserting studs |2 |1 |712.99 | |Mounting hinges |3 |1 |2534.95 | |Gluing Carpet |2 |2 |546.72 | |Attaching metal plastic fixtures |10 |1 |1054.5 |

The current scenario of workstation shows unbalanced workstation capacity in the plant leading to bottlenecks. Future Requirements:
|Operation |Operators |Shifts |Capacity per week | |Milling |1 |2 |1506 | |Painting |2 |1 |1878 | |Riveting, inserting studs |2(SH-1), 1(SH-2) |2 |1783 | |Mounting hinges |2 |1 |1690 | |Gluing Carpet |3 |3 |1640 | |Attaching metal plastic fixtures |8 |2 |1776 |

With adjustments in the number of operators and shifts worked, a more balanced line can be achieved.

a. Elimination of waste
Current status: Sunwind has high wastage through inventory (raw material, WIP and finished goods). It holds Skr 798,000 of inventory in WIP every year. Future Requirements: Through implementation of JIT, Sunwind should reduce the inventory held in all the three stages.

b. Reduce lot sizes
Current status: The high setup times of components has led to very high batch sizes in Sunwind. This batch sizes have also increased the inventory levels of Sunwind abnormally. Value added activities formed only 1.39% of total activities. Future Requirements: Through implementation of JIT, Sunwind should reduce its lot size which will make them more responsive to the demand from the customer. The lower lot sizes will also impart flexibility to the company to handle the large product mix.

c. Link operations
Current status: The current operations of Sunwind are not linked to its suppliers as well as its customer. The company follows a make-to-stock policy and has a planning horizon of 3-6 months for certain supplier components. Future Requirements: To implement JIT, the operations of Sunwind have to be linked to its suppliers as well as its customer. A linked operation will make it more responsive to the demand from the customer and ensure on-time delivery of components. Also, with the suppliers, the linked operations will prove useful for the variety of colors and carpet type needed for the floor lid.

d. Total Preventive maintenance
Current status: Sunwind currently does not have TPM implemented in the company. This was one of the major causes for varying output due to failure of the gluing machine. The milling machine also operated for 3 shifts and was a critical resource. Future Requirements: Through implementation of JIT, Sunwind should work on the 8 pillars of TPM namely- 5S, Autonomous maintenance, Kaizen, Planned maintenance, Quality maintenance, Training, Office TPM and Safety, health...
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