Introduction to the Case Industry and Identification of Critical Product

ABC case study has been carried in a leading food product manufacturing unit, located near Ludhiana, Punjab, India using VSM, having annual turnover approximately Rs. 15 million ($0.23 million). This organization was started in 2001 and is an ISO certified company. The company employs 400 personnel including workers, supervisors, engineers and also top management. The most valuable product of the organization is pressure type juicer machine. But the organization was not being able to complete the customer’s demand. Because a lot of time being wasted in the manufacturing of pillar rod (one of the most essential parts of juicer machine). The problems faced by the selected organization are: • Insufficient layout of the organization. • Unnecessary movement of material from one place to another which in turn leads to the wastage of time as well as workforce. • Production lead time & WIP inventory were very high. The organization is manufacturing all types of commercial and domestic food processing products. But the most valuable product of ABC organization is pressure type juicer machine. Pillar rod is the most essential part of juicer machine, which was selected on the basis of excessive wastage of time in manufacturing as compared to other parts. (1) Production lead time was very high as comparison of others and (2) In-process inventory was also high.