Manufacturing Systems: EMP-5179 Module #5: Value-Stream Mapping & Quick Set-Up

1. Manufacturing Systems: EMP-5179Module #5: Value-Stream Mapping& Quick Set-Up Dr. Ken Andrews High Impact Facilitation Fall 2010

2. Program Overview (Modules & Weeks) 7. Quality at Source 1. Intro. ToManuf. Systems There IS Class on Nov 8 2. Lean & JIT 8. Customer Ints. 3. Push vs. PullProcess Impr. 9. QFD & DFM 4. TQ Tools & Techs. 10. Teams & Change No Class on October 11 11. Term Papers 5. Value Stream Maps 12. Final Exam (Dec 6)-new date 6. Manuf. Metrics

3. EMP-5179: Module #5 • Gen-X Case Study • Value Stream Mapping(ref Gary Conner) • Quick Set-Up

4. Key Manufacturing Strategies • Quality • Cost • Delivery

5. Waste Opportunities • Producing defective parts • Passing on defective parts • Not communicating improvements • Overproduction • Inventories • Motion • High nonvalue ratio • Transportation • Waiting • Counting • Inspection after the fact • Facility layout • Excessive setup times • Incapable process • Maintenance • Work method • Training (or lack of) • Supervisory ability (coaching) • Production planning/scheduling • Lack of workplace organization • Supplier quality/reliability • Lack of concern

6. Two Approaches

7. Mapping Value Streams Define all activities required to design, order, and provide a specific product, from concept launch, from order to delivery, from raw materials into the hands of the customer. This includes: • Information flow • Material flow • Inventory (WIP) • Non value-added activities • Transportation flow

8. A visual tool for identifying all activities of the planning, and manufacturing process to identify waste Provides a tool to visualize what is otherwise usually invisible The leaders of each product family need to have a primary role in developing the maps for their own area Develop a current state map before improvements are made so that the efforts and benefits can be quantified On the shop floor, not from your office—you need the real information, not opinion or old data Value Stream Mapping What? Why? Who? When? Where?

9. Value Stream Map Symbols 3,000 units Spot weld C/T = 30 sec ABC C/O = 10 min plating Finished 3 shifts goods = 1 day 2% scrap rate Process Vendor Data box Inventory Mon and Wed Physical pull Shipment Push Supermarket

10. Step #1 Identify customer requirements Define method of delivery Define typical quantity requirements It is OK that more than one customer is served by this value stream, but make sure that the primary processes used are similar Use a pencil rather than computer Approach to Value Stream Mapping 6 units/ week XYZ Corporation 18 units/day 9 lefts 9 rights Recyclable tray

11. Step #2 Perform an upstream walk through each process step, observing and documenting as much of the following as possible: Cycle time (operator & machine cycle time) Changeover times Average inventory queue Average production batch size Number of operators at each process Package or container size Available time (don’t count breaks) Scrap rate Machine up time (availability) Number of product variations Approach to Value Stream Mapping 180 units/ week XYZ Corporation 18 units/ day 9 lefts 9 rights Recyclable tray

12. Approach to Value Stream Mapping • Step #3 • Record as much data as is pertinent in the process description box The triangle symbol identifies inventory; this can be expressed in pieces or in time (how many hours, days, or weeks of inventory). Process Description I Crew size: Output: per: C/T The arrow connects to the next process. A straight arrow can stand for a push, a curved arrow can symbolize a physical pull from a kanban location. C/O Up time: Waste % Time available

13. Approach to Value Stream Mapping • Step #4 • Dream about perfection • Think outside the box • Develop alternatives to the current state map—Muda free • Focus on velocity • Test each idea against TOP— in other words, does it support: • One-piece flow • Pull

14. Approach to Value Stream Mapping • Step #4 • Dream about perfection • Think outside the box • Develop alternatives to the current state map—Muda free • Focus on velocity • Test each idea against TOP— in other words, does it support: • One-piece flow • Pull • Develop a “future state” map that visually describes the goal • Break down the future state map into manageable steps • Develop a Gantt chart (time-phased project plan) • Identify the kaizen events that will need to take place

15. Fast Track Process Improvement What process? Improvements toa) fix root causes b) meet C requirements Customer +requirements Metrics (1-3 months) Map currentprocess Communicate plan Identifyhot-spots Implement,measure,fine-tune Root-causeanalysis

16. Current State Map (Simplified) Weekly shipments: 6-day lead time as shown 700,000 lineal 50,000 pieces 5,350 finished pieces/day 5 % 90 % Staging 5 % 10% 90% Lam #1 Resaw (4 saws) Molder #4 Prime I I I I Crew size: 4 Crew size: 1 1/3 Crew size: 4 Crew size: 3 Run speed 58 ft/min Run speed 184 ft/min. Run speed 300 ft/min Run speed: 3,15 l ft/min Output: 500 pieces/hr Output:1,584 pieces/hr Output:1,285 pieces/hr Output: 1,350 pieces/hr 4,500 pieces 9000 9,000 268 pieces C/T= 7.2 sec C/T= 2.3 sec C/T= 2.8 sec pcs C/T= 1.3 sec pieces C/O= 5 - 25 min C/O= 7 - 30 min C/O= 5 - 45 min C/O= 1 min - 1 hr % Crew:days= 100% % Crew Days =100% % Crew:days= 100% % Crew:days =100% swing = 0% Swing =0% swing = 0 % swing = % Reliability = 98% % Reliability = 95% % Reliability = 98% % Reliability =73% Waste = 1/2% Waste = Waste = 1/2% Waste = 3% Sec available 27,000 Sec available 108,000 Sec available27,000 Sec available 27,000 Weekly hr = 5 Weekly hr = 31.6 Weekly hr = 38.9 Weekly hr = 18.5 .5 hr 48 hr 48 hr 48 hr 1,034 sec 230 sec 280 sec 130 sec

17. Value-added Ratios VA:NVA Process Time Shear 10 blanks = 15 min Punch 10 blanks = 30 min Deburr 100 parts = 10 min Form 100 parts = 40 min Hrdwr 100 parts = 15 min Pack 100 parts = 10 min Total = 120 min Lead time 1.0 day 1.0 day 0.5 day 1.0 day 1.5 day 0.5 day 5.5 day (7,920 min) 120 is 1.5% of total lead time or a ratio of 1:66

18. Future State Map Weekly shipments: 700,000 lineal 1-day lead time as shown 50,000 pieces Ÿ Free up $50,625 inventory Ÿ 96% improvement in lead time Ÿ Instant quality feedback 5,350 finished pieces/day 95% Staging 5% Lam #1 Primed lineal cell I I Crew size: 4 Crew size: 6 Run speed 58 ft/min Run speed 300 ft/min Output: 500 pieces/hr Output: 1,285 pieces/hr 4,500 268 pieces pieces C/T= 7.2 sec C/T= 2.8 sec C/O= 5 -25 min C/O= 10 - 20 mins % Crew:days= 100% % Crew days =100% swing = 0% % Reliability = 98% % Reliability = 95 % VA Ratio =1:12 Waste = 1/2% Waste = 1.2% Sec available 27,000 Sec available 27,000 Weekly hr = 5 Weekly hr = 38.9 Production lead .5 hr 3 hr .2 hr time = 3.7 hr Value-added time 1,034 sec 199 sec 1,233 sec

19. Improvement Data Before • 5 forklift movements • 28,118 pieces in WIP • 144 hr lead time • 273 labor hr/week • 9,000 ft2 required After • 3 forklift movements • 10,118 pieces in WIP • 3.7 hr lead time • 235 labor hr/week • 2,760 ft2 required Improvement • 40% reduction • 64% reduction • 97% reduction • 14% reduction • 70% reduction

20. Value Stream Mapping: Summary • Develop a current state map first • Clearly document the future state map so everyone can visualize it • Perform the improvements in manageable steps • Be good at finishing—use policy deployment • Don’t wait for the entire process to complete, celebrate the journey

21. EMP-5179: Module #5 • Review Quiz #1 • Gen-X Case Study • Value Stream Mapping • Quick Set-Up

22. JIT: Pull System • Benefits: • Eliminate waste. • Eliminate over production. • Reduce inventory and warehousing costs. • Restrains. • Higher shipping costs per unit. • Needs extensive supplier and system integration. Remember from Module #2?

23. Reducing Inventoriesthrough Setup Time Reduction • Central to JIT is the reduction of production lot sizes so that inventory levels are reduced. • Smaller lot sizes result in more machine setups • More machine setups, if they are lengthy, result in: • Increased production costs • Lost capacity (idle machines during setup) • The answer is: REDUCE MACHINE SETUP TIMES Remember from Module #2?

24. Set-Up Reduction • Traditionally, we have left set-up operations to the workers. Even when employees are conscientious, they often lack the resources and authority to make significant improvements to the set-up process. • Outdated accounting practices still “drive” many organization’s thoughts regarding set-up. That is- large lot size runs in order to spread the cost of timely and costly set-up operations across many pieces, thereby reducing set-up cost per piece. • What this model of thinking results in is lengthy set-up operations that take hours or days, instead of minutes. Most set-ups can be reduced by 50-90% with a focused approach, using low-cost, no cost techniques. • The potential that reducing set-up has is difficult for most people to envision as a reality, because “that is the way we have always done it”, blinds us to the possibilities. • In order to achieve small lot production and thereby achieve significant reductions in inventory and WIP, set-up reductions must be done first.

25. Setup reduction Typical setup activities • Prepare 30% • Attach machine parts 5% • Measure, center 15% • Adjust 50%

26. The SMED Approach • Observe (videotape) the setup • Time • Distance (spaghetti diagram) • Define internal/external elements • Separate external elements from setup • Shift as many internal elements to external as possible • Streamline internal elements • Streamline external elements

27. Time Observation Sheet

28. Set-Up Reduction Internal Set-up - Defined as the elements or work that must be carried out while the machine or equipment is shut down or idle. - Example of Internal Set-up Elements: - Removal and attachment of dies. - Tooling adjustments when tooling is on the machine. External Set-Up - Defined as set-up elements which can take place while the machine is in operation or after the operation is completed. - Example of External Set-Up Elements: (1) Return of dies to storage. (2) Transporting of new dies to machine.

29. Set-Up Reduction: Internal  External • Improving Transportation and removal of Dies and other Parts:Do as an External Activity and not when the machine is idle.- Die storage should have a clearly marked and specific location, not simply a general shop area. Dies need to always be returned to the same location, in “production ready” condition.- Wherever possible, dies should be stored at or near the point of production use. Segregation by cell, product line or family are also possible location schemes. • Eliminate Small losses:- Determine what preparations have to be made in advance.- Determine what tools need to be on hand- What type of work bench is required for proper organization of tools and other equipment.- Where the tools, jigs, dies, blades, cutters placed after each use

30. Set-Up Reduction: Internal  External • Pre-assemble. Do any assembly of parts attachment when the machine is running and adjust “pre-sets” also during External Time. • Eliminate “guess work” and repeated need to adjust to get correct settings of tooling, jigs, beds, etc. • Use standard and “One-Touch” Tools. “One-Touch” tools are quick fitting jigs, fixtures, that require minimal adjustment and are easily placed repeatedly and accurately for each set-up. • Simplify Clamping Mechanisms. • Reduce the number of bolts. • Use single thread bolts versus multiple thread bolts. • Replace bolts with hydraulic or cam-operated clamps.

31. Set-Up Reduction: Internal  External • Add parallel operations • Two people are more effective than one and the set-up time can often be reduced by more than 50% with the same amount of labor. • Optimize the Number of Workers and the Division of Labor. • On lengthy set-ups, use more than two people. • Determine what the “optimum” number is through analysis. • Determine how the work is to be divided to optimize efficiency and avoid duplication of efforts. • Standardize the work and cross-train.

32. Three ways to spend money on Setup • Run large batch sizes, hold lots of inventory • Run small batch sizes with no change to the setup • Fix the setup

33. Set-Up Time & Lot Size • In a mass production environment, the most commonly recognized benefits of shorter set-up times are: • Greater machine utilization • Higher workstation efficiency • Overall factory efficiency ???? • In a lean environment the greatest benefit of reduced set-up times is: • The ability to produce in smaller lots

34. B B B B Set-up A Set-up Set-up Set-up Set-up A A A B Set-up A Set-up Set-up Set-up Set-up LargerLots Smaller Lots Original Improved Production Options with Quick Set-Up

35. Impact of Small Lots on Total System Efficiency • Eliminates Over-Production • Reduces Cycle-Time • Reduces Congestion/Waiting at Machines • Supports Inventory/WIP Reduction • Less Floor-Space Requirements • Reduces Scrap • Improves Quality (“machine + man + dog”) • Improves Customer Response Time & Flexibility • Increases Worker Motivation

36. Preparation for Next Week • Watch for new articles/links on the website • Download material for module #6 • Ideas for your term paper??