Creating Flow through Shared Resources

Creating Flow through Shared Resources Kevin J. Duggan, Founder kduggan@instituteopex.org

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, CN Railroad, Express Jet, 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

Improve Improve Improve Sustain The Lean Journey Sustain Sustain

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

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

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 Eight Guidelines for End-to-End Value 6 Week Forecast Production Control XOXO Form Assembly Test Ship FIFO Weekly Orders FIFO Stream Design 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.

Ten Guidelines Ten Guidelines for the for Mixed the Mixed Model Model Pacemaker Production 6 Week Control Forecast Supplier Weekly XOXO 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 Pacemaker Ten MM Guidelines 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Six Guidelines for Shared Resources Flow 6 Week Forecast Supplier Weekly Shared Resource Form Production Control XOXO Assembly Shared Resource FIFO Test 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 Ship Six SRF Guidelines

Nine Guidelines Nine Guidelines for Office Flow for Office Flow Customers email Request Form P/T=15 min. 1 CSR Create File 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.

Stam p Weldin g Solderi ng Introduction to Shared Resources Assemb ly FIFO Moldin g Inspectio n Test Decoratin g FIFO Ship Six SRF Guidelines

Normal vs. Abnormal Flow Normal Abnormal

Cut cost Increase OTD Lean Increase efficiency Reduce lead time Improve quality Operational Excellence Brand recognition VOC Increased sales Higher market share

Lean Journey Continue to drill deeply to eliminate waste Lean and Operational Excellence Lean Journey Operational Excellence Ops management spends most of its time on activities that grow the business: Brand recognition Voice of the customer Solution provider Technology improvements

Bridge Lean to Operational Excellence

Automotive Model Introduction to Shared Resources Fixed Sequence (Mixed Model)

Introduction to Shared Resources What is a shared resource? Process A process that is responsible for more than one product family

American Pump current state factory layout.

American Pump current state factory layout, material flow: Cylinder Medium Pump Piston Small Pump Large Pump

Product Family Definition Value Stream Mapping Review Current State Map The 4 Step Process Future State Map Implementation Plan

Part Number Saw (x2) Grind (x2) Drill Mill Machine Deburr Heat Treat CNC Lathe 1 CNC Dual Spindle Lathe Product Family Matrix 767-577 x x x x x x A x A x x x x 458-743 x x x x A x x A x x x x x 187-192 x x x x x A x x x x x x 199-225 x x x x x x x A A x x x x 281-849 x x A x x x x x x x 981-156 x x x x x x A x A x x x x 623-405 x x x x A x x A x x x x x 606-723 x x x x A x x A x x x x x 689-529 x x A x x x x x x x 554-086 x x x x x A x x x x x x 345-008 x x x x x x x A x x x x x 418-690 x x A x x x x x x x 583-930 x x x x A x x A x x x x x 565-451 480-231 x x x x x x x x x A x x A x x A A x x x x x x x x x 212-660 x x x x x A x x x x x x 799-398 x x x x x A x x x x x x 238-561 x x x x x x A x A x x x x 542-429 x x x x A x x A x x x x x 623-444 x x A x x x x x x x Manual Deburr Hone Shared Polish Stamp Carburize Sub Assembly Dedicated Paint Final Assembly Test Inspection Ship

Work Part Number Family Content 542-429 Small Pump 10 15 8 15 48 480-231 Small Pump 10 15 8 15 48 623-405 Small Pump 10 15 8 15 48 458-743 Small Pump 10 15 8 15 48 565-451 Medium Pump 30 20 16 15 81 767-577 Medium Pump 30 20 16 15 81 981-156 Medium Pump 30 20 16 15 81 238-561 Medium Pump 30 20 16 15 81 583-930 Large Pump 45 40 35 15 135 606-723 Large Pump 45 40 35 15 135 345-008 Large Pump 45 40 35 15 135 199-225 Large Pump 45 40 35 15 135 799-398 Cylinder 23 100 15 15 153 187-192 Cylinder 23 100 15 15 153 554-086 Cylinder 23 100 15 15 153 212-660 Cylinder 23 100 15 15 153 689-529 Piston 25 18 10 5 15 73 623-444 Piston 25 18 10 5 15 73 418-690 Piston 25 18 10 5 15 73 281-849 Piston 25 18 10 5 15 73 Sub Assembly Work Content Times Dedicated Paint Final Assembly Test Inspection Ship There should be no more than a 30% variation in the work content.

Shared Dedicated American Pump current state factory layout, subassembly and final assembly dedicated.

Product Family Definition Value Stream Mapping Review Current State Map The 4 Step Process Future State Map Implementation Plan

Shared Dedicated

Product Family Definition Value Stream Mapping Review Current State Map The 4 Step Process Future State Map Implementation Plan

1. Can we extend the product families? Design Guidelines 2. Can we create process families with dedicated equipment? 3. Can we create flow through true shared resources? 4. Can we balance to create continuous flow? 5. How will the shared resource know what to make next? 6. How will we manage the shared resource?

Shared Resource Analysis 1. Can we extend the product families?

Can we Dedicate a Shared Resource? A few guidelines: Focus on active part numbers only Concentrate on the top 80% by volume Dedicate as much as possible Separate uptime and yield from run time identify factors

Calculating Machine Load at the Deburr Manual Deburr AT = 450 minutes (1 Shift) PLT = 414 minutes 306 minutes M Time left for CO Uptime = 6 minutes 300 minutes Machine Deburr AT = 450 minutes PLT = 414 minutes 301 minutes Cyl. Lg. Sh. Sm. Sh. Time left for CO Uptime = 6 minutes 90 minutes 125 minutes 80 minutes

I 4.9 d I 72 CNC Lathe CT=30 min. CO=25 min. UP=95 % Machine Loading 2 I 24 Manual Deburr CT=25 min. UP=98 % A/T = 450 minutes (1 Shift) PLT = 414 minutes 306 minutes The Shaft Branch M Time left for c/o Uptime = 6 minutes 300 minutes

CNC Lathe 1 AT = 450 minutes PLT = 414 minutes 379 minutes M Time left for CO Uptime = 19 minutes Run time = 360 minutes CNC Dual Spindle Lathe AT = 900 minutes PLT = 828 minutes Run Time = 200 minutes 563 minutes The Shaft Branch C L S Time left for CO Uptime = 28 minutes Run time = 160 minutes Run time = 175 minutes

Machine Loading I 72 CNC Lathe 1 Assign p/n s CT=30 min. UP=95 % A/T = 450 minutes (1 Shift) PLT = 414 minutes 379 minutes M. Sh. I 24 The Shaft Branch Manual Deburr Assign p/n s CT=25 min. UP=98 % A/T = 450 minutes (1 Shift) PLT = 414 minutes 306 minutes M. Sh.

6 d 2 d

Saw 1 End Plate & Rotor Process Family Grind 1 Drill Small Pump Asy Cylinder Asy Piston Asy

Benefits of a Process Family Dedicate set of tools Create universal fixtures Have all programs local on machines Reduction in setup times Operator TPM / increased uptime Visual flow Self healing flow / Operational Excellence

Saw 1 End Plate & Rotor Process Family Grind 1 Drill Small Pump Asy Cylinder Asy Piston Asy

End Plate & Rotor Process Family Saw/Grind/Drill Small Pump Asy Cylinder Asy Piston Asy

Branch Takt time Takt Time Customer demand rate for the product family Branch Takt Customer demand for all the products that go through the process family

Branch Takt vs. Cycle Time at the End Plate & Rotor Process Family Branch Takt = 18 min./pc. Time CT = 15 min. CT = 12 CT = 8 min. min. Saw 1 Grind 1 Drill

What is the Interval of the Shared EPEI = Every Part Every Interval Resource? How long it will take to produce all the part numbers within a process family Longest interval wins The smaller we can make the interval, the better the flow through the shared resource.

We would compare the total time needed to the available working time (PLT) per interval. Any leftover time can be used for changeovers. Time left for changeovers Uptime factor Total run time What is the Interval of the Shared Time Machine Available time Planned load threshold (85% - 95% of available time) Total time needed per interval Resource?

I 2 Days Saw 1 CT=8 min. CO= 5 min. UP=95 % EPEI = 1 day I 2 Days Longest Interval Wins Grind 1 CT=15 min. CO= 15 min. UP=95 % EPEI = 2 days I 2 Days Drill CT=12 min. CO= 7 min. UP=100 % EPEI = 1 day

American Pump factory layout with Saw 1, Grind 1, and Drill combined into a cell making small, medium, and large end plates and rotors.

I 5.7 d I 86 Mill CT=25 min. CO= 45 min. UP=95 % I 2.9 d I 36 Shared Resource Analysis Machine Deburr CT=25 min. CO= 0.25 min. UP=98 % The Impeller Branch I 1.9 d I 20 Heat Treat CT=60-240 min. CO= 50 min. UP=95 %

1. Can we extend the product families? Key Questions 2. Can we create process families with dedicated equipment? 3. Can we create flow through true shared resources? 4. Can we balance to create continuous flow? 5. How will the shared resource know what to make next? 6. How will we manage the shared resource?

Process A FIFO First In First Out FIFO is a form of flow used to regulate two disconnected processes FIFO is similar to ping pong balls going through a pipe. They always come out in the same order, and the pipe is only so big. Once you fill it, that s it. Max = 4 FIFO Process B

Machine Deburr Connecting the Machine Deburr to the Heat Treat with a Single FIFO Lane Family Cylinder Small Impellers Medium Impellers Large Impellers CT 18 8 25 29 Heat Treat

Connecting the Machine Deburr to the Heat Treat with a Single FIFO Lane Family Cylinder Small Impellers Medium Impellers Large Impellers Machine Deburr CT 18 8 25 29 Heat Treat

Multiple FIFO Lanes Multiple FIFO Lanes is an ideal approach to create flow with shared resources! Provides more flexibility for managing flow with multiple families than a single lane. Great approach to managing flow into a shared resource from multiple inputs, including multiple pass items and rework loops. Key Questions How many? How big? How used? Mix Indicator Next job

Q & A Session Conclusion

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