5 . Case Studies

Case studies.5 Two

case studies were used to test the ability of EPFA to identify VGs. The case studies concerned of two factories making power cables for different market sectors. The next tables identifies these two cases:

Table 1:case studies comparison Factory 1

Factory 2

Market sector.1

kV power distribution cables 1-132 Special cables for use in mining, between substations and towns, aircraft, shipping, and public villages or directly to large .building .consumers

Profit source.2

Operates in a fiercely pricefamily of 24 families is profitable 1 sensitive market resulting in small that accounts for 50% of factory .profit margins output, other families are .produced in small quantities

Age.3 Factory layout.4

years old 30

years old 11

Function (process) layout [product oriented lines 2]

Function (process) layout

Table 2:summary of case data sets Data type

Factory 1

Factory 2

324

699

Number of process routes

65

159

Number of machines

85

47

Number of processes

21

12

319

604

7

24

438

27,332

Number of jobs

Number of products Product families Total length of finished )cable (km





 



The results of EPFA methodology to identify VGs were positive; as it was possible to identify VGs with functional layouts. In both cases 4 VGs were identified due to similarities of processes and stages of production. No single VG produced a complete product. Products in both cases pass through VG1,then proceed to either VG2 or VG3 and are completed in VG4. VGs in case 1 were characterized by clear process differences, and in case 2 by different levels of profitability.

Table 3:Case 1 & 2 VGs Group number and type

Description of case 1

Description of case 2

VG1 (process based

Wire draw, annealing and .stranding

Wire draw, annealing and stranding, rod draw .and tinning

VG2 (product based

Waveform, paper, HV XLPE, MV .XLPE

.FP product family

VG3 (product based

LV XLPE, LV PVC Remaining product .families

VG4 (process based

Test

(

(

(

(

Test

The results of both case studies indicate the decoupling point will be required between VG1 and VG2.  The level of buffer stock required will be influenced by product mix at this point. 

conclusions.6 

This paper describes the value of VGs to functional layouts by the ability of changing the focus of processes to products management, the advantages of which are:



Increasing the importance of addressing customer demand at all stages of production. VGs offered the opportunities to enable functional layouts to achieve the combination of lean and agile concepts in manufacturing system.



  

This paper differentiated VGs from VCM and cellular manufacturing. This paper showed the ability to identify VGs in two case studies of cable manufacturing. The application of EPFA in any factory with functional layouts is better than layout changes for manufacturing improvements.



One of the important improvements VGs can offer is the de-coupling point:



Its capacity and management are vey important in determining the scale of benefits obtainable by the implementation of the virtual groups. Simulation could provide the necessary insight.

