Track: Industrial Management

Abstract

This paper is a case study of an engineering and manufacturing company which designs, manufactures, and services equipment used in the extraction of petroleum and natural gas. The company faced the challenge of long lead time for its products. A study was undertaken for one of the products to reduce the lead time. Study involved mapping all processes from order receipt till dispatch that includes identification of Value Added and Non-Value-added processes /activities with recommendation for better utilization of available resources. Study included Process Mapping for Design, Procurement, Assembly, Painting and dispatch, Value Added and Non Value Added activities were identified, process Analysis was undertaken and Suggestions for improvements were made. It was observed that the company followed “Project Based Manufacturing” which made the critical path longer. There are only minor changes in design of most of the products. The analysis suggested the company to move from Project based manufacturing to Standard Product based manufacturing for the studied product which will improve the information flow and throughput time. Changing to “Standard Product” thus helped in eliminating some non-value-added processes. In order to keep the benefits for longer period and get sustained improvements, few more suggestions were given.