MSL Horn Assignment
MSL Horn Assignment
STUDY:
MEAGAL STELPLAST PVT. LTD.
Submitted by:
Abinash Kumar Sahu, PGEXP‐26
Kumud Anand, PGEXP‐21
Rakesh Ranjan, PGEXP‐19
Observations and problem areas
i. The company’s overall performance is satisfactory. There is scope for improvement in some of
the areas.
ii. The capacity can be improved by efficiently utilizing the resources
iii. The stress on quality is a positive factor and will help the company in the long run.
iv. The company should target to establish its own brand name and try to enter the OEM market.
v. As the demand is estimated to grow, the company should try to capture more marketshare.
The problem areas include
i. As it operates under made to order type of supply chain, the erratic nature of demand causes
uneven load on the plant. Hence inventory and manpower management becomes difficult.
ii. The competition issues in the market is posing a serious threat for survival of the company in
the long run
iii. The fluctuating raw material prices hinder the company to adopt a made to stock kind of
strategy. Supply of raw material is erratic and at times the suppliers run out of stock. This
builds pressure on MSL management and delays their production schedule. It also creates
planning and forecasting problems.
iv. There is lack of optimal utilization of manpower. Task specialization is not seen.
v. Inventory management seems to be non‐existent. Though there are no such space constraints
and a healthy demand for horns, inventory is not being effectively used to cater to this
demand.
vi. Material management as seen from the video was unorganized and jumbled. The assembly parts
were haphazardly laid out. This obviously leads to poor material management and pilferage
vii. Process automation is absent thereby increasing the cycle time of individual as well as overall
process.
A. Suggestion for improvements
i. Modification in process flow
They can analyze their existing process flow diagram and make necessary changes
Existing Process flow diagram
4. Diaphragm Assembly
23 s
1.1 Coil Winding 1.2 Edge cleaning
46 s 16 s
3. Housing Assembly 5. Final Assembly
1 m 40 s 1 m 15 s
2.1 Burr cleaning 2.2 Company Stamping
10 s 10s
6. Stud and Bracket
9. Packaging 8. Final Testing 7. Testing
Fitting
50 s 8 s 47 s
22 s
MLT = 6 min 4 sec
CT = 1 m 40 sec
Critical WIP = MLT/CT = 364/100 = 3.64 horn
Monthly capacity = 26*9*60/1 min 40 sec = 8424
But monthly sale is 15000 per month and 15 % sales increase is forecasted, so forecasted sale is 17250.
Bottleneck is housing assembly which is taking maximum time i. e. 1 m 40 sec, so if two parallel housing
assemblies and two final assemblies are positioned then capacity of assembly line will be doubled.
Proposed Process flow diagram
4. Diaphragm Assembly
23 s
3. Housing Assembly 5. Final Assembly
1.2 Coil Winding 1.2 Edge cleaning
46 s 16 s 1 m 40 s 1 m 15 s
5. Final Assembly
2.1 & 2.2 Burr cleaning & company stamping 1 m 15 s
20 s 3. Housing Assembly
1 m 40 s
6. Stud and Bracket
9. Packaging 8. Final Testing 7. Testing
Fitting
50 s 8 s 47 s
22 s
Shuffling of workers: One worker will be replaced from process 2.2 and same will be positioned at the
additional process 3. One additional worker is required at the additional process 5.
The revised process parameters are
CT = 1 m 40 sec/2 = 100 sec/2 = 50 sec
Monthly capacity = 26*9*60 min /50 Sec = 16848
MLT = 276.5 sec = 4 min 36 min
Critical WIP = MLT/CT = 276.5/50 = 5.53 horn
ii. Manpower strategy
They should concentrate on task specialization and optimal utilization of manpower.
Training and encouragement is necessary for using automatic machines
iii. Inventory Management
Computerized inventory management should be adopted to check any pilferage and
shortages of supply. An optimal inventory calculation needs to be carried out.
B. Suggested Future Plans
a. For a consistent demand and better sales, company should try to enter into the OEM
market.
b. For bigger capacity, the company should adopt made to stock strategy.
c. As there is no constraint for space, new plant for OEM market is advisable.
d. Necessary certifications are to be taken for entering the OEM market.
e. IT enabled information management system like ERP is to be implemented.
f. Computerised inventory management system is to be put in place and demand
forecasting is to be done.