Value Stream Mapping and Improved Cell Layout in an Oilfield Services company

Abstract

This research explores potential improvements in efficiency through improved cell layout and value stream mapping. Analysis of cell layout led to significant reductions in material handling and operator movement along with reduction in cell area thereby improving overall productivity. Value stream mapping of protector assembly, one of the company's products, identified hidden inefficiencies in the value stream. A future state map using lean principles was also prepared. The major improvement areas concerned process improvement and lead time & Work-In-Process (WIP) reductions. This research also provides a detailed framework to deal with inventory inaccuracy existing in the system. Three inventory inaccuracy compensation methods were introduced and their performance was evaluated and compared using a simulation study.