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The table below provides the parameters for a new current state value stream map for the family of retainers at Jensen Bearings Inc. This table depicts the value stream after Kline Steel agrees to accept daily orders for steel sheets and also agrees to deliver on a daily basis. Calculate each component of the new value stream's reduced lead time. Jensen Bearings operates 5 days per week.

1. Click the icon to view the data from the new current state value stream map at Jensen Bearings Inc.

Overall Process:
- Average demand: 2,700/week (1,400 "L" and 1,300 "S")
- Attributes: Batch size: 1,000
- Number of shifts per day: 1
- Availability: 8 hours per shift with two 30-minute lunch breaks

Press Process:
- Step 1:
- Cycle time: 6 seconds
- Setup time: 2 hours
- Uptime: 90%
- Operators: 1
- WIP: 1 day of sheets (before Press)

Process Step 2: Pierce & Form
- Cycle time: 27 seconds
- Setup time: 30 minutes
- Uptime: 100%
- Operators: 1
- WIP: 1,000 "L", 1,350 "S" (before Pierce & Form)

Process Step 3: Finish Grind
- Cycle time: 40 seconds
- Setup time: 45 minutes
- Uptime: 100%
- Operators: 1
- WIP: 300 "L", 1,550 "S" (before Finish Grind)
- WIP: 600 "L", 1,300 "S" (after Finish Grind)

Process Step 4: Supplier Information
- Ship: One shipment a day in trays of 60 pieces
- All communications from customer are electronic
- Forecasts: 180/90/60/30/day
- Daily Order: All communications to supplier are electronic
- 4-week Forecast: Weekly Fax
- There is a weekly schedule manually delivered to Press, Pierce & Form, and Finish Grind and a Daily Ship Schedule manually delivered to Shipping
- All material is pushed

Questions:
a. How many days of raw material does the Bearings plant now hold? The plant holds _____ days of raw material. (Enter your response rounded to one decimal place.)

b. How many days of work in process inventory is held between Press and Pierce & Form? The inventory is held _____ days. (Enter your response rounded to one decimal place.)

c. How many days of work in process inventory is held between Pierce & Form and Finish Grind? The inventory is held _____ days. (Enter your response rounded to one decimal place.)

d. How many days of work in process inventory is held between Finish Grind and Shipping? The inventory is held _____ days. (Enter your response rounded to one decimal place.)

e. What is the new value stream's production lead time? The production lead time is _____ days. (Enter your response rounded to one decimal place.)

f. What is the new value stream's processing time? The processing time is _____ seconds. (Enter your response as a whole number.)

Answer :

a. To calculate the number of days of raw material inventory, we need to consider the average demand and the batch size.

The average demand per week is 2,700 sheets, and the batch size is 1,000 sheets. Since the plant operates 5 days per week, the plant holds (2,700/5) / 1,000 = 0.54 days of raw material inventory.

b. The work in process inventory between Press and Pierce & Form consists of the batch size of 1,000 sheets. Since the batch size is the same as the work in process inventory, the inventory held between Press and Pierce & Form is 1 day

c. The work in process inventory between Pierce & Form and Finish Grind is given as 300 sheets for "L" and 1,550 sheets for "S" before Finish Grind. After Finish Grind, the inventory is 600 sheets for "L" and 1,300 sheets for "S". Therefore, the inventory held between Pierce & Form and Finish Grind is (600+1,300) - (300+1,550) = 50 sheets.

d. The work in process inventory between Finish Grind and Shipping is not explicitly provided in the given information. Therefore, we cannot determine the number of days of work in process inventory between these two steps.

e. The new value stream's production lead time is calculated by adding the days of raw material inventory, the days of work in process inventory, and the days of finished goods inventory. Since the finished goods inventory is not provided, we cannot determine the production lead time.

f. The processing time for the new value stream is the sum of the cycle times for all process steps: 6 seconds + 27 seconds + 40 seconds = 73 seconds.

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