Creating Mixed Model Value Streams

Creating Mixed Model Value Streams Kevin J. Duggan, Founder

Renowned expert in applying advanced lean techniques to achieve Operational Excellence Author of four books on the subject Kevin has guided many major corporations worldwide, including FMC Technologies, Chromalloy, Aetna, SpaceX, Caterpillar, Pratt & Whitney, Singapore Airlines, Sikorsky, IDEX Corporation and Parker Hannifin Featured on CNN and the Fox Business Network Frequent keynote speaker, master of ceremonies, and panelist at international conferences Kevin J. Duggan

Kevin J. Duggan Kevin has assisted many major corporations worldwide including FMC Technologies, Chromalloy, Aetna, SpaceX, Caterpillar, Pratt & Whitney, Singapore Airlines, Sikorsky, IDEX Corporation and Parker Hannifin Frequent keynote speaker, master of ceremonies, and panelist at international conferences, and has appeared on CNN and the Fox Business Network.

Continuous Improvement Companies have done continuous improvement activities for years

Continuous Improvement Pareto

Continuous Improvement Impact Effort

Continuous Improvement

Improving Operations

Improve Improve Improve Sustain The Lean Journey Sustain Sustain

Operational Excellence Mature lean company 1 5 10 Time in Years Level of improvement

Operational Excellence Operational Excellence 1 5 10 Time in Years Level of improvement

The Jump to Operational Excellence Level of improvement 1 5 10 Time in Years

Operational Excellence When each and every employee can see the flow of value to the customer, and fix that flow before it breaks down. SM Kevin J. Duggan

The Eight Steps to Achieve Operational Excellence 1. Design a lean flow using lean guidelines. 2. Implement a lean flow. 3. Make the lean flow visual. 4. Create standard work for the lean flow. 5. Make abnormal flow visual. 6. Create standard work for the abnormal flow. 7. Teach employees to maintain and improve the flow to the customer. 8. Free management to work on offense.

Supplier Weekly 6 Week Forecast Eight Guidelines for End-to-End Production Control XOXO Form Assembly Test Ship FIFO Value Stream Design Weekly Orders FIFO Customer Daily 2 days 1 day 1 day 1 day 5 days 2 sec 20 min 10 min 15 min 45 min Eight VS Guidelines 1. 2. 3. 4. 5. 6. 7. 8.

Supplier Weekly 6 Week Forecast Pacemaker Production Control XOXO Ten Guidelines for the Mixed Model Pacemaker Form Assembly Test Ship FIFO Weekly Orders FIFO Customer Daily 2 days 1 day 1 day 1 day 5 days 2 sec 20 min 10 min 15 min 45 min Ten MM Guidelines 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Six Guidelines for Shared Resources Flow Supplier Weekly Shared Resource Form 6 Week Forecast Production Control XOXO Assembly Shared Resource FIFO Test Weekly Orders FIFO Customer Daily Ship 2 days 1 day 1 day 1 day 5 days 2 sec 20 min 10 min 15 min 45 min 1. 2. 3. 4. 5. 6. Six S/R Guidelines

Customers email Request Form P/T=15 min. 1 CSR Create File Nine Guidelines for Office Flow Sales Database FIFO Design Pkg. Max = 1.5 days 0 1.5 days Log File 4 Hrs. Estimating Cell Takt = 60 min. P/T=170 min. PC/T=55 min. Op = 3 17 Min. 170 Min. email Post Office Customers 4 Estimates per Day 1.5 Days + 187 min 187 min. L/T P/T 1. 2. 3. 4. 5. 6. 7. 8. 9. Nine Office Guidelines

Beijing Walls China Seven Guidelines for Supply Chain Flow Practical Solutions (MO) Premier Rail Cars Axle Co. Unlimited (WV) FIFO Seven SC Guidelines 1. 2. 3. 4. 5. 6. 7.

Production 6 Week Control Forecast Supplier Weekly XOXO Pacemaker The Mixed Model Pacemaker Weekly Orders Customer Daily Form Assembly Test Ship FIFO FIFO 2 days 1 day 1 day 1 day 5 days 2 sec 20 min 10 min 15 min 45 min Ten MM Guidelines 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Pistons: 45-80 units Brackets: 50-90 units Arms: 25-75 units Stamp Mix of Products Flow through the Same Value Stream How will we run all these products through the same value stream when demand changes each day? Collars: 30-55 units Diverters: 35-60 units Detectors: 20-40 units Lifters: 55-75 units Levers: 60-95 units Cranks: 40-70 units Paint Assemble Ship FIFO max 50

Number of Products Which Type of Value Stream is this? Discrete Mfg. 2 Discrete manufacturer High mix 1 Discrete manufacturer Degree of customization required Make to Order Mfg. 3 Job shop Very high mix High customization 4 Low mix High customization

Welcome to EMC Supply Co. In today s class we will visit the Electro-Motion Control (EMC) Supply Co. EMC Supply Co. builds a wide variety of products for the motion control and electronics industries. They supply distributors and end users. They also build custom products to order. The management at EMC Supply Co. have stated that want to achieve self-healing value stream flow in their high mix environment.

Pistons: 45-80 units Brackets: 50-90 units Arms: 25-75 units Stamp Mixed Model Value Streams Collars: 30-55 units Diverters: 35-60 units Detectors: 20-40 units To produce a variety or mix of products or product variations through the same value stream AT THE PULL OF THE CUSTOMER. Lifters: 55-75 units Levers: 60-95 units Cranks: 40-70 units Paint FIFO Assemble Ship max 50

EMC Product Family PRODUCT Mixed Model Value Streams Anticipated CUSTOMER ORDERS EACH DAY Demand MON TUE WED THU FRI A Sensor Activated Arm 65 54 48 36 60 70 B Laser-Activated Arm 85 84 78 48 84 75 C Manually-Activated Arm 35 24 30 24 25 35 D Bar Code Diverter Piston 70 84 72 60 75 70 E Bar Code Diverter Arm 50 60 84 72 55 65 F Sensor Activated Piston 55 36 48 48 55 30 G Laser-Activated Piston 20 18 27 39 25 25 H Manually-Activated Piston 25 36 54 54 20 20 I Custom Orders 45 30 36 30 45 45 TOTAL 450 426 477 411 450 435

Key Questions and our Agenda 1. Do you have the right product families? 2. What is the takt time at the pacemaker? 3. Can the equipment support takt time? 4. What is the interval? 5. What are the balance charts for the products? 6. How will we balance flow for the mix? 7. How will we create standard work for the mix? 8. How will we create pitch at the pacemaker? 9. How do we schedule the mix at the pacemaker? 10.How do we deal with changes in customer demand?

Product Family Matrix

Product Family Matrix Injection Molding P/N Name 12834 XS2 Servo Motor X X X X X X X 18392 Sensor-Activated Arm X X X A X X X X X X X 19283 Photoelectric Detector X X X X 19299 Ionization Detector X X X X X 21000 Laser-Activated Arm X X X X X X X X X X 21032 Manual Servo Motor X X X X X X X 21042 Manual Servo Motor II X X X X X X X 22020 Manually-Activated Arm X X X A X X X X X X X 23756 Fiber Optic Visual Sensor X X X X X X 24783 XS3 Servo Motor X X X X X X X 25030 Radon Detecter X X X X 28121 Bar Code Divertor Piston X X X A X X X X X X X 30000 Bar Code Diverter Arm X X X A X X X X X X X 31000 Sensor-Activated Piston X X X A X X X X X X X 31666 Laser Diverter X X X X X X X X X X 32220 XS4 Servo Motor X X X X X X X 34556 Carbon Monoxide Detector X X X X X 35599 Auto Servo Motor X X X X X X X 38200 Laser-Activated Piston X X X X X X X X X X 42005 Manually-Activated Piston X X X A X X X X X X X 45890 Motion Detector X X X X Stamp Deburr Hand Deburr Paint Welding Mechanical Assy Electrical Assy Final Assy Configure & Test Ship

Three Potential Families P/N Name 18392 Sensor-Activated Arm A X X X X X X X A 21000 Laser-Activated Arm X X X X X X X X A 22020 Manually-Activated Arm A X X X X X X X A 28121 Bar Code Divertor Piston A X X X X X X X A 30000 Bar Code Divertor Arm A X X X X X X X A 31000 Sensor-Activated Piston A X X X X X X X A 31666 Laser Divertor X X X X X X X X A 38200 Laser-Activated Piston X X X X X X X X A 42005 Manually-Activated Piston A X X X X X X X A 12834 XS2 Servo Motor X X X X B 21032 Manual Servo Motor X X X X B 21042 Manual Servo Motor II X X X X B 24783 XS3 Servo Motor X X X X B 32220 XS4 Servo Motor X X X X B 35599 Auto Servo Motor X X X X B 19283 Photoelectric Detector X X X X C 19299 Ionization Detector X X X X X C 23756 Fiber Optic Visual Sensor X X X X X X C 25030 Radon Detector X X X X C 34556 Carbon Monoxide Detector X X X X X C 45890 Motion Detector X X X X C Hand Debur Paint Welding Mechanical Assy Electrical Assy Final Assy Configure & Test Ship FAMILY A B C

Name Refine by Work Content Hand Debur Paint Welding Mechanical Assy Electrical Assy Final Assy Configure & Test Ship TOTAL A Sensor-Activated Arm 30 60 45 90 140 130 110 X 605 B Laser-Activated Arm 30 60 30 60 140 100 110 X 530 C Manually-Activated Arm 45 60 40 120 150 90 100 X 605 D Bar Code Diverter Piston 30 60 35 90 180 140 110 X 645 E Bar Code Diverter Arm 60 60 45 100 180 105 105 X 655 F Sensor-Activated Piston 30 60 40 85 105 90 90 X 500 G Laser-Activated Piston 30 60 35 150 130 140 200 X 745 H Manually-Activated Piston 30 60 35 80 145 100 100 X 550 I Laser Diverter 30 60 40 240 300 240 80 X 990 X Custom Orders 30 60 30 120 160 105 110 X 615

Current State Map

Takt time = customer demand rate for the entire family. Need to select time period and understand limits of the mix Takt Time for the Mix

Name DEMAND Sensor-Activated Arm 65 Laser-Activated Arm 85 Manually-Activated Arm 35 Bar Code Diverter Piston 70 Bar Code Diverter Arm 50 Sensor-Activated Piston 55 Laser-Activated Piston 20 Manually-Activated Piston 25 Custom Orders 45 Total Demand 450 Takt Time Example Effective Time = 900 min. * * 2 shifts x (8 hrs. -.5 hrs.) TAKT = Effective Time Total Demand = 2 min.

Determining Equipment Needs Name A Sensor-Activated Arm 110 65 7150 B C D E F G H X Laser-Activated Arm Manually-Activated Arm Bar Code Diverter Piston Bar Code Diverter Arm Sensor-Activated Piston Laser-Activated Piston Manually-Activated Piston Custom Orders Configure & Test C/T DEMAND TIME NEEDED Effective Working Time Machines Required Configure & Test Total Time Sum

Interval for the Mix In a mix environment we must define the Interval in which the pacemaker will run the mix of products. The concept of the interval must be clearly understood. You may have hear the term EPEI which stands for Every Product Every Interval.

PRODUCT The Interval WEEKLY DEMAND A Sensor-Activated Arm 325 B Laser-Activated Arm 425 C Manually-Activated Arm 175 D Bar Code Diverter Piston 350 E Bar Code Diverter Arm 250 F Sensor-Activated Piston 275 G Laser-Activated Piston 100 H Manually-Activated Piston 125 X Custom Orders 225 TOTAL - 2250

PRODUCT A B C D E F G H X The Interval Description Monday Tuesday Wednesday Thursday Friday Sensor-Activated Arm Laser-Activated Arm Manually-Activated Arm Bar Code Diverter Piston 325 125 300 150 25 Bar Code Diverter Arm 75 175 Sensor-Activated Piston 275 Laser-Activated Piston 100 Manually-Activated Piston 125 Custom Orders 225 Total - 450 450 450 450 450 350 1 Week

PRODUCT A B C D E F G H X The Interval Description Monday Tuesday Wednesday Thursday Friday Sensor-Activated Arm 65 65 65 65 65 Laser-Activated Arm 85 85 85 85 85 Manually-Activated Arm 35 35 35 35 35 Bar Code Diverter Piston 70 70 70 70 70 Bar Code Diverter Arm 50 50 50 50 50 Sensor-Activated Piston 55 55 55 55 55 Laser-Activated Piston 20 20 20 20 20 Manually-Activated Piston 25 25 25 25 25 Custom Orders 45 45 45 45 45 Total - 450 450 450 450 450 1 Day

Is there Enough Time for Changeovers? We would compare the total time needed to the effective working time per interval. Any left over time can be used for changeovers. Time left for changeovers 100 min. 10 Products in the Family Max C/O time = 10 min. Time Machine station Effective working time per interval 900 min. Total time needed per interval 800 min.

How will we Flow Work through the Pacemaker?

Takt = 120 sec. Current State Mech. 45 sec. Assembly Welding Operator Balance Chart - Part A (Sensor-Activated Arm) 140 sec. 90 sec. Elect. Assembly 130 sec. Final Assembly 110 sec. Config & Test Takt = 120 sec. Balance Charts Operator Balance Chart - Part A (Sensor-Activated Arm) 110 sec. 110 sec. 110 sec. 100 sec. Mech. Elect. Final Assembly Assembly Assembly Welding Future State Config. & Test Common Tools

Takt = 120 sec. Takt = 120 sec. Current State Operator Balance Chart - Part B (Laser-Activated Arm) 140 sec. 110 sec. 100 sec. Elect. Assembly Final 60 sec. Assembly Config & Test Mech. 30 sec. Assembly Welding Operator Balance Chart - Part A (Sensor-Activated Arm) Mech. 45 sec. Assembly Welding 140 sec. 90 sec. Elect. Assembly 130 sec. Final Assembly 110 sec. Config & Test Takt = 120 sec. Takt = 120 sec. Future State Operator Balance Chart - Part B (Laser-Activated Arm) 110 sec. 110 sec. 110 sec. Elect. Assembly Final Assembly 65 sec. Mech. Config. Assembly Elect. & Test Assembly Final Assembly Welding Operator Balance Chart - Part A (Sensor-Activated Arm) 110 sec. 110 sec. 110 sec. 100 sec. Mech. Elect. Final Assembly Assembly Assembly Eliminate Walking Welding Config. & Test Common Tools

Machine Cycle Times Products with a high cycle time at a station may exceed mix takt time. Bottleneck 200 sec. Testing Takt Time = 120 sec.

Balancing Machine Cycle Times Some products have a higher Test cycle time than takt time A small FIFO lane absorbs the mix difference in machine times FIFO Lane sized to the interval Pacemaker 90-150 seconds FIFO Test 90 200 seconds

Balancing Flow for the Mix Since the labor content varies and not all products can be balanced to takt time, we must decide the best way to balance the products based on our business. Let s look at balancing options

Option # 1: Discrete Parts Low Demand Variation High Volume # Operators always constant Output varies based on work content Level mix, sequence orders based on work content and pull signals Pacemaker 90-150 seconds Balancing Examples Level the schedule and keep labor constant, build products in order: A C B A C B A C B FIFO Test 90 200 Seconds Ship

Option # 2: Discrete Parts Custom Parts High Demand Variation Short Lead Times Build to demand as much as possible Output constant, labor varies A C B C C B Pacemaker 110 seconds Balancing Examples Balance to the takt time and add labor when a product exceeds the takt time. Try to build products to demand. FIFO Prod Control Test 90 200 s AWCT=110s FIFO Ship Customer demand Small overflow of main products when mix is exceeded

Takt = 120 sec. 35 sec. Welding Takt = 120 sec. 35 sec. Welding Operator Balance Chart - Part D (Bar Code Diverter Piston) 180 sec. Elect. 90 sec. Assembly 140 sec. Re-Balance for Building to Demand 110 sec. Final Mech. Assembly Config Assembly & Test Operator Balance Chart - Part G (Laser Activated Piston) 150 sec. Mech. Assembly 130 sec. Elect. Assembly 140 sec. Final Assembly 200 sec. Config & Test Takt = 120 sec. Operator Balance Chart - Part D (Bar Code Diverter Piston) 110 sec. 110 sec. 110 sec. 110 sec. Final Mech. Elect. Assembly 75 sec. Config. Assembly Assembly & Test Welding Takt = 120 sec. Elect. Assembly Final Assembly Operator Balance Chart - Part G (Laser Activated Piston) 110 sec. 110 sec. 110 sec. Mech. Assembly Welding Elect. Assembly Mech. Assembly Final Assembly Elect. Assembly 105 sec. Final Assembly 200 sec. Config. & Test

By Standard Work we mean that any operator following a prescribed method, with a proper workstation, and proper tools, should be able to perform the amount of work required in the same amount of time, without risk to health or safety. Creating Standard Work

Pitch is targeted to be: Takt time x something (ex. Pack size) Establishing Pitch How can we create pitch when the pack size is different for each product?

Name Sensor-Activated Arm 4 6 2 min 12 Laser-Activated Arm 4 6 2 min 12 Manually-Activated Arm 4 6 2 min 12 Bar Code Diverter Piston 5 12 2 min 24 Bar Code Diverter Arm 4 12 2 min 24 Sensor-Activated Piston 4 12 2 min 24 Laser-Activated Piston 5 3 2 min 6 Manually-Activated Piston 4 3 2 min 6 Custom Orders 4-5 3 2 min 6 Creating the Schedule Box # Operators Pack Qty Takt time Min per Case Max = 24 minutes Min = 6 minutes Pitch = 24 minutes 4 slots needed per pitch increment

Pitch = paced withdrawal at the pacemaker. Pitch = visual timeframe. I withdraw parts from the pacemaker every twenty four minutes What is Pitch?

Slot = 6 minutes Setting Up the Schedule Box Pitch increments or Buckets of capacity Sensor-Activated Arm Shift 1 6:00 Shift 2 3:30 Laser-Activated Piston Bar Code Diverter G G G G 6:24 6:48 3:54 4:18 D Max = 24 minutes Min = 6 minutes Pitch = 24 minutes 4 slots needed per pitch increment A A

Scheduling Products with Various Work Contents Mix Analysis Product Pacemaker Takt Time Testing Cycle Anticipated Mix Time A 120 110 sec 65 B 120 110 sec 85 C 120 100 sec 35 D 120 110 sec 70 E 120 105 sec 50 F 120 90 sec 55 G 120 200 sec 20 H 120 100 sec 25 X 120 110 sec 45

Logic Chart

Loading the Schedule Box Shift 1 6:00 6:24 6:48 7:12 7:36 8:00 8:39 9:03 9:27 9:51 10:15 10:39 11:33 11:57 12:21 12:45 1:24 1:48 2:12 6:24 6:48 7:12 7:36 8:00 8:24 9:03 9:27 9:51 10:15 10:39 11:03 11:57 12:21 12:45 1:09 1:48 2:12 2:30 G D D D D H H X E E E F C A A A B B B G H H X G H X X C A A B B B B G H X X 4 operators 3 operators

Future State Map

Finished Goods Level We can establish preset levels of the supermarket based on the flexibility and performance of the value stream LEVEL 1 LEVEL 2 LEVEL 3 CUSTOMER

Supermarket limits Flexible Supermarkets Total demand for the product family Lead time intervals

1. Do you have the right product families? 2. What is the takt time at the pacemaker? 3. Can the equipment support takt time? 4. What is the interval? 5. What are the balance charts for the products? 6. How will we balance flow for the mix? 7. How will we create standard work for the mix? 8. How will we create pitch at the pacemaker? 9. How do we schedule the mix at the pacemaker? 10. How do we deal with changes in customer demand? Summary

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