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Case Study #1

Submitted by:
Team #2
Fernanda G. Isidoro Correa
Henrique Siqueira Madeira
Rafael Frasson Pereira
Rafael Gomes de Carvalho

MSE 507
Prof. Scott Wainess
Date 10-08-14

Table of Contents

1. The Lean Implementation 2. The Five Principles of Lean a. Specifying Customer Value b. Identifying the Value Stream c. Making the Value Stream Flow d. Implementing Customer Pull e. Pursuing Perfection 3. Insights and Conclusions 4. Appendix

The Lean Implementation

As we have studied, lean manufacturing is one of the initiatives that many major businesses in the world have been trying to adopt in order to remain competitive in an increasingly global market. The focus of this approach is on cost reduction by eliminating non value added activities. Applications of lean manufacturing have been less common in the continuous / process sector, in part because of a perception that this sector is less amenable to many lean techniques, and in part because of the lack of documented applications. This has caused managers to be reluctant to commit to the improvement program. The chosen article for this case study takes a case based approach to address both issues. It describes a case in which lean principles were adapted for the continuous / process sector for application at a large integrated steel mill. Value stream mapping was the main tool used to identify the opportunities for various lean techniques. The article also describes a simulation model that was developed to contrast the ‘‘before’’ and ‘‘after’’ scenarios in detail, in order to illustrate to managers potential benefits such as reduced production lead-time and lower work-in-process inventory. Finally, the article explains that one of the biggest obstacles for the company, which has long