TC380FinalReport(mikemark)

TC380FinalReport(mikemark) - Optimizing Process and Layout:...

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Optimizing Process and Layout: Improving the efficiency of the assembling and packaging process and expanding the facility to reach new consumers Final Report Delivered To: Mr. Reed Sharp Owner, E-Dining 33665 Winding Way Eagleton, MI 48546 Prepared By: Ms. Ashley Jones, Ms. Jaclyn Julow, and Mr. Michael Mark Senior Project Managers, Consultant Experts Inc. 6346 Industrial Drive Tecton, MI 48555 Date Submitted: November 18, 2008 Approved by: _______________________ _____________ Mr. Reed Sharp, Owner, E-Dining Date
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Introduction E-Dining, an online catalog company founded in 2003, sells dinner kits to a customer base of parents with young children. The kits are prepared in E-Dining’s 1800 square foot facility on the edge of Midwestern University; however the facility is overcrowded due to its inefficient assembly and packaging operations. E-Dining is purchasing an adjacent 1200 square foot facility to alleviate these inefficiencies and open a walk-in facility to expand their market. Its business plan is to continue increasing online sales and expanding sales to college students at Midwestern with a walk-in facility. Both increases in sales and the expansion to a college student customer base will further strain their packaging facility and raise questions of how to arrange the 1200 square foot addition. E-Dining needs to know the sources of current process inefficiency and improve these inefficiencies concurrent to expanding their market sales. Therefore, E-Dining asked Consultant Experts Inc. to provide current layout process times and two alternative layouts using the 1200 square foot expansion. Consultant Experts Inc. will develop a plan that improves the current assembly and packaging process and creates an efficient walk-in facility. To answer these questions Consultant Experts Inc. will perform the following tasks: analyze worker surveys, observe worker flows, perform time studies in the assembling and packaging kits, measure the distances, interview workers, and collect quantitative data about E-dining inventory. This final report will provide findings, conclusions and recommendations. Background The current assembling and packaging process estimates that employees take 12 to 16 minutes to assemble and package a kit for shipping. One major problem in the process above is the time required to assemble the kits, which is influenced by navigating the boxes in the facility, moving between traffic with other packaging workers, and finding the kit components in the two storage areas. The estimate above does not include the time spent looking for an open bench to assemble a kit, which means actual cycle time of the product is higher than 12 to 16 minutes. The time spent looking for an open bench is the second major problem with the current process. Four to six workers often occupy a single assembly bench. Increase in sales has caused assembly and packaging operations to become this overcrowded. At the same time, E-Dining wants to create a walk in facility to expand their market. This project will
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This note was uploaded on 03/11/2009 for the course IOE 310 taught by Professor Saigal during the Winter '08 term at University of Michigan.

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TC380FinalReport(mikemark) - Optimizing Process and Layout:...

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