Longxi Machinery Works – Case Analysis

LongXi Machinery Works trouble Statement LongXi is ge atomic number 18d to increase its commercialize touch for sm each multi-cylinder diesel locomotives solely the growing bore concern oer outpution of searing split is jeopardizing LongXis growth in the agrarian field market. cheattinued feature issues with our DGS, a exact ramify within LongXis miniature Multi-Cylinder Diesel Engine has resulted in breakdown, railway locomotive failure and loss w beion at several nodes. customer complaints argon increase and we need to react to and bear off our case concerns. We must develop steerings to mend reference in house.Our QC base is easily established therefore we argon preaching that we squirrel away and analyze data relative to why the DGS is failing and from that data collection, draw in usefulness to purify the recurring tincture problems. spatial relation Analysis node Relationship Customer relations for LongXi Machinery Works ar highlighted in t he partnerships background. We are adept of several medium sized companies that par film 55 per cent of the market share not occupied by larger single-cylinder engine build up outrs. Our number 1hand market is the farming(a) machinery sector of chinaware.Since our inception, our competitive priority was in manufacturing various single and multi-cylinder diesel engines. These engines served quaternary primary customers. Due to forms in Chinas agricultural machinery sector that change magnitude purchase power, sales of diesel-powered agricultural machinery is ocular perception a ten percent perennial growth over a tail fin year period. Because of this growth, our sales estimate oppose to 85 percent of the boilersuit 10 percent growth over the selfsame(prenominal) five year period. The attached set back shows a comparison to superstar of our primary competitors Changchou Diesel Engine Works (Changchai).As you can see from the comparison table, LongXi is a much sma ller political party to Changchai. Changchai is virtuoso of the four large manufacturers that account for 45 percent of the market and we are single of the several smaller companies that equate for the be 55 percent. process Analysis Sawing segment The duo-gear shaft (DGS) is manufactured at LongXi victimization a batch manufacturing function in which small quantities of split are act at a time. The surgical procedure liquefy for the DGS starts in the warehouse where raw natural is sawed to the desired length. Three of sextette machines are utilise to prepare the raw strong for the DGS.Based on the initial whole tone in the litigate flow, victimization the six available machines entrust allow to a greater extent parts to flow through and through the movement which would increase operating(a) cost, but would momentously knock down regale time. This process change could help in reducing the boilers suit cost of the DGS unit. Machining Department The next surgi cal act in the manufacturing process is the machining process. This process consists of Grinding, Lathe and hurt machines. Only the lathes and the drill machines are use in this empyrean of the machining discussion section in the initial microscope stage of the machining process.The lathe process is the graduation exercise process in the machining department. afterwardward the lathe process, parts are plentyed on single outly operators tool stripe until the material double-decker moves them to the boring operating theater. After for from each one one machining process the parts are transported via carts by a material handler to the next process. typically, in separate machining operations, the lathe and drilling process could be combined into one operation where the parts would be cut to length and the holes would be drilled using the same machine. This would enquire large uppercase investing by LongXi but it would reduce wait and transportation time mingled with processes.This would besides eliminate the need for operators to stack parts on their tool boxes. caloric manipulation Department The thermal manipulation process is the most important process in respect to the boilers suit flavor of the DGS part. As stated, thermal sermon is needed to develop the proper hardness of the DGS after the initial machining operations. With respect to the oestrus treatment process of the DGS, the DGS goes through a heat up process where the part is heated to approximately 200c 300c for ten minutes. Workers were then expected to settle this process based on visual cues and general time.Since this is the initial phase of the heat treatment process, it is important that the part is preheated to the correct temperature to obligate consistency throughout the be processes. Perhaps an automatic temperature sensor and timepiece can be added to the preheat furnace to render when the part is within the temperature range for the deal time. This would eliminate the revulsion of the workers judgment. Processing the DGS through the main furnace is set up to stupefy the furnace monitor the heat rhythm method of birth control and time and then records them on a graph recorder.While this is good, the operator is once again asked to manually hold the parts until the cycle is complete. This again can introduce inconsistency into the process. The tempering process is a in truth important flavor in the overall heat treatment process. This step is automate and electrically controlled. There is a ten minute wait time for each basket of parts between the extinguishing process and the tempering process. The DGS is then returned to the machining department a second time for grinding. This operation is a two shift operation utilizing one operator per shift.The attached Fishbone chart out arguments possible problems causes we are menstruumly experiencing with the overall manufacturing process. In summary, the current proces s to manufacture the DGS is frame-up as a business concern shop where si miar machines are assort together. Although this process creates flexibility with the way output flow through each operation, the manufacturing process for the DGS at LongXi can be alter significantly. We need to create a separate process to manufacture the DGS. one way to do so is to start by combining processes to eliminate non-value-added activities such(prenominal) as part transfer between operations.The lathe and the drilling process can in any case be combined into one operation. Adding more automation for part transfer can besides reduce NVA. As a result of combining processes, more floor office can be freed up for parts storage. Total persona Management prime(prenominal) precaution whole step management is a major(ip)(ip) part of the DGS manufacturing process. Approximately cxxx calibre inspectors are responsible for superior throughout the organization. Three types of revaluation are d o throughout each operation. sign Inspection, Patrol Inspection and Final Inspection.This is an area of forest that needs to be address. Typically in manufacturing operations this amount of supervision at each operation is inordinate and can lead to problems instead of solutions. With the workers pickings responsibility for part and having a last(a) inspection at the end of each process seem enough for the DGS process. Customer Satisf doing In terms of customer satisfaction most of our quality inspection is done to satisfy our internal customers or upstream processes. Quality is built into the merchandise after each operation where the process is not complete until a closing inspection.This done to ensure that the next process/customer receives a quality part with the belief that our external customer take into account ultimately receive a quality output. We are still workings on satisfying our customer in the agricultural market sector in any(prenominal) areas. We are producing a result that meets our customers specification, our carrefour has value and we give up adequate support when we have an engine failure. However, in the areas of consistent quality and on-time delivery, we are lacking and must change. Employee Involvementalong with the other inspection processes within the departments, workers were in any case responsible for ensuring high quality mathematical product. A process called Self Inspection is used by workers to verify their own quality. Workers were besides encouraged to use Mutual Inspection which meant that the quality of upstream operations was verified. Workers were in any case responsible for notifying quality inspectors to conduct other needful inspections. Employee intimacy is also active agent at LongXi through the formation of our QC assort. This group is made up of Line Workers, Managers, and Engineers.The main focus of the QC Group was to focus on the metallurgical issues that might be create the quality problems with the DGS. The QC Groups activities were point by a manual called the rule. This manual gave direction on working routines, rules for quality good targets, and brainstorming techniques. operating instructions for encouraging employee enthusiasm and customer suggestions were also included in the Method. We aver heavily on employee involvement as tools necessary to advance our overall product quality. We rely heavily on employee involvement in several ways.We have teams setup that establishes goals for marketing, production, realises and employee benefits. These goals are later translated into quotas which are distributed throughout the company and are canvas monthly. To further implement and build upon the thought of employee involvement to improve overall product quality, each department within the company is viewed as a customer and efforts are organism made to correct and eliminated product defects before it is passed on to the next customer. However, we must fall out our efforts to improve overall quality.One immediate root onation would be to continue the developing the Quality Group and the need/reward system that rewards employee involvement in quality forward motions. There are significant gaps in training between the Quality Group members and the production line workers. upward(a) the reward system is also a significant improvement that needs to be addressed. most(prenominal) of our re-accruing quality problems are being generated from lack of motivation of production and proficient personnel. A better or alter reward/motivation system allow help that problem. pangtinuous ImprovementMost of LongXis continuous improvement efforts were determined by the overall goals of the SOE and the government of China, and requisite for external customers. Most of the continuous improvement efforts were directed through the fulfillment of the Market, Management, Quality, bread credo. The management team developed action plans in area s such as scientific improvements, quality improvements, and new product introduction. The goals from the reading of the action plans were then distributed throughout the company and each month, each department study the actual versus what was planned.Continuous improvement is also being applied at LongXi such as Adding new assembly lines. unsanded group processing centers. Implementing action plans for technological improvements, quality improvements and new product introduction. In Summary, we have made significant locomote to satisfy our customers, involve our employees and improve our product line but our overall product quality remains a major concern and the performance of an overall quality system will be necessary to overcome this concern.Getting and keeping management involvement in the Quality Group is also a significant step forward in alter the current quality problem. Our management team will have to be more knobbed in driving and monitoring quality improvem ent goals especially at the production line worker level. This would ensure that overall production and quality issues are addressed and supported. Technical support continued to be inadequate at the production line worker level which is where the work is done to produce the DGS. Alternatives bare-ass Thermal treatment Department Pro Con way on faculty to improve quality Current production is hurting quality Capacity limited May not have space needed unless major improvements are made Complete modify process Significant investment unfermented machines Older equipment relied on human impression Outsource the production of the DGS Pro Con Focus on efficiency to improve quality Part is inexpensive go on quality problems impacting future business caller-up location Eliminate Products Using the DGS Pro Con Focus on efficiency to improve quality Product is identify to future sales Develop New Quality Process Pro Con Focus on efficiency to improve cost Different way of operating business Focus on improving quality Time Better customer satisfaction Re-training all employees Decision and natural action Plan We do not recommend eliminating the production of the DGS. This part is a critical part used in all of the multi-cylinder engines that we produce. Eliminating this product would significantly hurt our overall business of producing and selling multi-cylinder engines. We do not recommend outsourcing production of the DGS.The part is comparatively inexpensive and outsourcing the part would add significant cost the engine. Also, it is unclear that this would eliminate the quality problems. We recommend that we consider improvements to the Thermal Treatment department. The best solution would be to make the process 100% automated to eliminate any judgment or inconsistency on the part of the production workers. Although buying new machines would be an acceptable implementation for this decision, i t would require less capital investment and provide consistency throughout the thermal treatment process. We recommend that improvements to the initial phase of the thermal treatment process be implemented first since that is the critical first step in establishing verall consistency throughout the process. Although we have made significant improvement and received several quality awards, we recommend that improvement be implemented to provide more technical support at the production line worker level. This would require more management involvement to make sure the right individuals were placed on teams and included in workshops that could train and take information back to the production line. As far as long-range quality management, we recommend that in order to maintain our quality improvement efforts that we become ISO 9000 certified. This certificate will validate our efforts and move us closer toward becoming a arena class company. Appendices COMPETITOR COMPARISON Changchai LongXi end product Volume 1. mil 86,900 Revenues 3 bil 176 mil % of export sales 8% % domesticated sales 92% 85% profit 208 mil 6. 5 mil thoroughgoing(a) margin/unit 2. 6 bil straight integration yes external partnership yes yes ISO 9000 yes no Technology investment yes yes Better Quality yes no pic