PRODUCTION PROCESS
| Course Code and Name | QMT 4143 Value Stream Management | Faculty Name | |
| Project Title | Assessment 3 – Group Project
Group report worth 10%. Presentation and oral worth 20%. |
Due Date | Week 12 for the group report
Week 14 for the individual oral defense |
| Company name: | Date
Submitted |
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| Campus | CRN |
- Table of Contents
1.2 Products By Raw Coffee Company. 4
2.1 Product or services. 4
2.2 Inventory management works. 6
3 Stages of Lean Application for The Production. 7
3.1 Demand, Flow And Levelling. 7
3.2 Seven types of wastages in this situation could be, such as. 9
4.1 Processes of Raw coffee company. 14
5 FUTURE STATE FOR RAW COFFEE COMPANY COFFEE PRODUCTION.. 15
1 Introduction
The raw coffee company sources premium green beans from all over the world and has found the best suitable market for sustainability and quality. It is essential for the RAW coffee company that’s its beans are ethically-sourced and the farmers and his family who grow the beans. We work directly with farmer and processing partners for the fresh beans each year; Roasting and other things are also appropriately considered. Anyone can visit our warehouse, roastery for the purchase sample or provide fresh online delivery to your doorstep.
Since the 2007 RAW coffee company is getting into the coffee business, they realize that Coffee is about beans and Roasting. They managed many variables: the quality of water, quality equipment, trained staff, and others. The coffee market is so glad that they got such a great company( Raw Coffee Company, N.d).
1.1 Brief Background
- The Raw coffee company is a Coffee retailing company and shop, and they also work with the production. From production to service, everything they do is specialties of their company in the market. They are competing with the master coffee company whit their traditional Coffee and are also mastered in flavored Coffee. They provide different flavored coffee types, which is best of their Coffee like cinnamon flavored, chocolate, nuts & caramels flavored, and Vanilla flavored. They have created their entire flavor on their own, and coffee-flavored Coffee is also in the top-selling. As Arabica is considered the best coffee beans globally, the Raw coffee company also deals only with the Arabica coffee. They even work worldwide as they export their Coffee and merchandise to other countries (Raw Coffee Company, N.d).
- Apart from the Coffee, they deal with the most important this associated with the Coffee: coffee machines, espresso machines, coffee subscriptions, training, and other aspects. Simultaneously, the problem comes with improving quality more as sometimes this is not possible for them to maintain the quality of the Coffee. That’s creating a problematic situation to match the demand and supply of the market positively. According to this company’s top-level management, this would be appropriate if they use proper management in their process. Using the proper or lean could enhance their process, plan, strategy, and other ideas and, most importantly, the skilled and knowledgeable workers.
1.2 Products By Raw Coffee Company
The raw coffee company has a wide range of coffee-related products that can be mouth-watering. The most important product they deal with is coffee beans and powder. Apart from that, espresso equipment, which is most important for any coffee business, can be a typical coffee shop and adequate dining restaurant espresso equipment is always in need. Next areGrinders, filters, scales, and other essential equipment for any coffee companies or a café. Every organization needs skilled employees, and the Raw coffee company provides training to every learner. The interested one makes the quality employees for any café or any coffee-related business, which benefits society the most.
Apart from all these, they provide coffee subscriptions, door to door delivery, and the essential promotion and marketing they sell their merchandises ( Montavon et al.,2003).
2 PRODUCTION PROCESS
2.1 Product or services
Raw Coffee Company produces complete and diversified coffee products and coffee-related products; it ranges from premium and estate coffees. The process starts from the dark roasts coffee, origins, blends, and spring flavors and espresso coffee and other than coffee products like espresso equipment, grinders, brewers, scales, and other things also. Moreover, the diversified ranges of coffee and equipment production, at Raw coffee production is not all about money-making as quality Coffee, food safety of consumers, equipment quality and durability are the most focused aspect of this Raw coffee company.
The Raw coffee company’s core production process requires in-depth research and development from the harvesting to the pickup of beans to the roasting process and till the doorstep delivery. At the beginning of the coffee production process, Coffee beans are harvested by strip picking; even tree gets harvested at once, single point of time in which all the berries are stripped ripe or unripe. Or else, they can do selective picking of cherries. After that, the picking of the coffee beans stars. In the next stage, the coffee producers of Raw coffee company initiate the coffee beans’ roasting process in their own company. The beans are mostly brought to a higher temperature, so Roasting happens appropriately and may cause significant chemical changes. And when the coffee beans reach the perfect temperature and it is cooled down quickly to stop the other process. Finally, the coffee beans get lighter than earlier by releasing moisture out of the beans. Thus, through this process, coffee beans are now ready to be packed and sell.
Source – https://rawcoffeecompany.com/collections/coffee
The production of this coffee retail and equipment company chain is considered approx—60% of overall production.
Moreover, when it comes to the supplies and suppliers for every part used for Raw Coffee, they provide a guaranteed supply of Coffee and equipment and other related products with the best and given qualities. Is come Qualities from Raw coffee companies’ supply chain and wholesales process. As a famous coffee brand in-retailer and wholesale, the company opened a new roaster and roaster warehouse as part of the expansion process of supply and coffee production-based is roasting facilities and equipment development that has significantly enhanced the capacity of supply chain and warehouse ( Machado&Leitner,2010).
Source – https://rawcoffeecompany.com/collections/single-origin
Inventory management is started from the place of origin or the central location. The company takes order weekly and deals and works with beans’ production to provides and meets its order and subscription. Hence, when it comes to inventory management, the company produces the highest quality and fresh Arabic beans and high-quality products and equipment.
2.2 Inventory management works
In terms of supply chain process, warehouse, wholesales, merchandising, and inventory management, Raw coffee company have the overall capability of roasting green coffee beans in large and production of espresso equipment and other equipment with the best quality. The coffee retail and wholesale chain mostly use FIFO and for some product, LIFO system of inventory, as it is entirely related to food manufacturing. Hence, mostly all food is perishable and has the date of expiry on it. If the product is not delivered or bought by any customer, it will be a waste and cause a loss for the company. Thus, by this FIFO inventory system, RAW coffee company checks the product’s quality and freshness ( Grewal,2008).
Image – Distribution Flow chart of Coffee
3 Stages of Lean Application for The Production
3.1 Demand, Flow, And Levelling
3.1.1 Demand Stage
Patterns of customers offer
The company needs to know the consumer’s offered pattern as it provides different kinds of Coffee, equipment, and other merchandise. So that they and follow the different patterns for the different kinds of situations.
Takt time Calculation
The Takt time is calculated as,
Takt time = available time for production/ total required for daily production.
Pitch definition
Pitch = Takt time *(Pack out quantity)
Buffer Inventory
The raw coffee company always keeps a buffer stock of finished goods to meet future demand hike or any to meet the present demand in this context.
Finished goods supermarket
We are supplying finished products to satisfy customers’ demands. The raw coffee company always keeps or holds some of the stocks of finished goods, but the production of goods takes place according to their demand.
3.1.2 Flow stage
Flow discussion
The RAW coffee company has proper management about the demand-supply and the consumer’s market information. According to that, the company’s management prepares the quantity of unit production in different conditions ( Flament,2002).
Balancing the line
At this time, RAW coffee plans for the whole production system flow and the distribution channels that work among their staff to meet the takt time.
Standardized work
One of the critical stages for the production flows as the Raw coffee company’s management always works and tries to work positively, and with that, a proper standard is also followed. Whereas for the standardized work, the companies need to maintain a proper communication channel with the staff or with the employees.
Quick changeover
As the company is associated with the food business or in simple coffee retail and Wholesale companies, they always maintain their machines and equipment properly, which could help them be more versatile and flexible during the production flow.
Maintenance
The production company makes a useful checklist for the maintenance and the proper check of machines before and after the production ( Chen, Joseph, and Cox,2012).
Process supermarket
After completing the production process of Coffee, the Raw coffee company process for its consumers.
Kanban system
It is always the company’s goal to deliver the product to the consumer on time without wastage or less wastage, and it’s called the JIT process. So, this would be appreciated for the t use JIT technique in a different situation.
FIFO system and schedule for production
This system ensures the production and company that none of the production systems can overtake the other production system. Also, the order should be maintained first in first out basis.
3.1.3 Leveling stage
Paced withdrawal
At the Raw coffee company, in this situation, the flow of information and material flow should link with each other as this system tells or describes the way through which work can be done.
Heijunka system
Through the process, the Raw coffee company can eliminate any kinds of errors and give a free flow to meet the consumer’s demand.
The runner
Currently, the Raw coffee company is not using any runner, but most probably in the future, they include.
3.2 Seven types of wastages in this situation could be, such as,
Figure 1: Seven wastages types
MURI: this means overburdening when the machine or materials will start working more than their capacity and capability. Then this is important for the employees at Raw coffee company to maintain the machines properly.
MURA: this means unevenness within the production. Sometimes, the Raw coffee company employees will use different amounts of materials, which cause over the coffee process. Then they should use the proper amount of materials in this situation.
3. Current State For The Production Process Of Raw Coffee Company
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The raw coffee company is one of the most famous coffee company that follows above the production practice. It mostly includes five primary and different Harvesting processes followed by Roasting followed by Inspection followed by Mill and Grading, and at the end, Packaging. All of the coffee beans are selected by checking of cherries color. And that all the cherries are dried and roasted into green beans. Through this inspection process, defective beans are thrown away, and the rest are collected for the quality products. After all, these process selected beans are now mailed and graded according to their color and size. After all these quality processes, selecting now all the green beans of Coffee can be packed and are ready to be shipped to the consumer ( Flament,2002).
| Process | Explanation | Bottlenecks & safety |
| Harvest | Mostly any new plant of coffee trees takes three to four years for bearing fruit. After getting a turn to a dark red color that berries are ready to harvest.
A farmer harvests each cherry by their hands. This process needs more workforce, which leads to more cost.
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Harvesting is a very intense process for that staff must be experts. Now machines are also used. |
| Roasting | It is an endothermic reaction where green beans absorb extreme heat, which increases the pores. This process darkens the green bees into a dark chocolate color, which is conducted in batches. Each batch may take around 16 minutes of complete Roasting.
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It’s tough to find the best Coffee after roasting; only experts know the real coffee quality. |
| Inspection | In this process quality of beans is checked as good or bad. There are several techniques to inspect the quality of coffee beans. Some production companies also use an image processing algorithm for this process. After all, these inspections now roast coffee beans re-tested. The quality of the coffee beans is decided based on shape, size, color, and morphology. | This process is critical and vast for that we need an expert with experience. The company must follow a safe technique for demanding quality beans. |
| Mill and grading | Through the milling process, the parchment layer is removed. Process of Hulling removes complete husk of roasted coffee beans. Beans are graded according to their size and color. The diameter of every coffee bean is also tested for grading. Low rated beans are removed by machine. These removed beans are insect-damaged or not acceptable in color and size. Over fermented beans are also thrown out. | Mostly machines can’t grade beans properly. Thus, this process includes the workforce, including machines. |
| Packing | These graded roasted coffee beans are called green Coffee. That all are now packed in jute bags for further shipping. This packing is again packed in plastic-lined containers for bulk shipping, which also protects from excess moisture. | Insufficient Packaging may lead to the wastage of Coffee in a large amount. After Packaging, coffee beans are delivered to the consumer. |
4 LEAN METRICS
| Inventory turn | 120 Days |
| Days of inventory on-hand: | 69.66 days |
| Defective parts per million (DPPM) or sigma level | 195000 |
| Total value stream WIP | 65494 units |
| Pack out quantity | 1000 Kg |
| Total cycle time, or total value-adding time (VAT) | 365 seconds |
| Total lead time | 26 days |
| Uptime | 96% |
| On-time delivery | 85% |
| Overall equipment effectiveness | 60% |
| First-time-through capability | 72% |
| Health and safety record | 3 |
| Daily production required |
3000 Units |
| Equipment used in each operation | Peeler, dry processing plant, huller, bean sorting machine, pulping machine, cylindrical grader. |
| Productivity | 62% |
| production rate | 66% |
| scarp rate | 8.3% |
| defect rate | 39.8% |
| number of employees in the production line |
70 workers |
| total quantities | 86452 units |
| inventory system | FIFO ( First In – First Out) |
| Total daily quantity requirements | 3000 |
4.1 Processes of Raw coffee company
- Harvesting
Cycle time = 528.58 min
Changeover = 0 min
Availability = 300 min
Uptime = 100 %
Operator = 14
- Roasting
Cycle time = 1297 min
Changeover = 10 min
Availability = 300 min
Uptime = 96.6 %
Operator = 3
- Inspection
Cycle time = 576 min
Changeover = 0 min
Availability = 300 min
Uptime = 100 %
Operator = 4
- Mill and grading
Cycle time = 1307 min
Changeover = 3 min
Availability = 300 min
Uptime = 98.8 %
Operator = 5
- Packing
Cycle time = 6 min
Changeover = 1 min
Availability = 300 min
Uptime = 99.5 %
Operator = 6
5 FUTURE STATE FOR RAW COFFEE COMPANY COFFEE PRODUCTION
Currently, the state of Raw coffee company production equipment consists of Five processes that are provided coffee beans, are perfect. But the next process may enhance the existing process effectively and efficiently. Next, process states consist of three processes that are entirely dependent upon the machine with less human resources. The other process emphasizes enhancing machinery work to get things done quickly.
| Harvesting | Roasting | Inspection | Mill and grading | Packing | Total |
| 0.367 days | 0.9 days | 0.4 days | 0.908 days | 0.005 days | 2.58 days |
Applying the future state plant, we get the following table, which is revised with the days taken for the coffee production.
| Roasting | Inspection, Mill, and grading | Packing | Total |
| 0.87 days | 1.526 days | 0.005 day | 2.4 days |
Through the machine’s use, the work will be done on time, and less workforce will be required. And it also reduces the chance of error and will help in maintaining the quality product. The machine does not need so much workforce to operate. Only a few or two will be enough for that, and all work will be automatically running. Raw coffee company Coffee improvises their quality products to a higher level while using machinery for every possible production process.
CONCLUSION AND RECOMMENDATIONS
The raw coffee company follows a traditional method of harvesting the coffee beans by a workforce that picks each of the coffee beans by hand with their eye for detail. They are a well-known manufacturer of quality Coffee of great taste. With the future state mapped in this report, the RAW coffee company is recommended to use machinery for the production processes. This machinery will reduce production time and help in producing more quantity in less time.
6 Reference list
Chen, Joseph C., and R. Cox (2012). Value Stream Management for Lean Office-A Case Study. American Journal of Industrial and Business Management, 2, pp. 17-29.
Flament, V. (2002). Coffee Flavor Chemistry. 396 pp. UK: John Wiley & Sons, Ltd. Accessed from https://www.researchgate.net/publication/227793784_Effects_of_roasting_degree_on_radical_scavenging_activity_phenolics_and_volatile_compounds_of_Arabica_coffee_beans_Coffea_arabica_L_cv_Catimor
Grewal, C. (2008). An initiative to implement lean manufacturing using value stream mapping in a small company. International Journal of Manufacturing Technology and Management, 15(3), pp. 404-417. Accessed from https://www.scielo.br/pdf/jistm/v13n3/1807-1775-jistm-13-03-0389.pdf
Machado, V.C., and U. Leitner (2010). Lean tools and lean transformation process in health care. International Journal of Management Science and Engineering Management, 5(5), pp. 383-392. Accessed from https://www.scielo.br/pdf/jistm/v13n3/1807-1775-jistm-13-03-0389.pdf
Montavon, P., Duruz, E., Rumo, G. &Pratz, G. (2003). Evolution of green coffee protein profiles with maturation and relationship to coffee cup quality. Journal of Agricultural and Food Chemistry, 51, 2328–2334
Raw Coffee company (N.d), accessed from https://rawcoffeecompany.com/