The Value of Cellular Manufacturing · Takt Time = Demand Rate WIP Inventory Orders Shipments 1...
Transcript of The Value of Cellular Manufacturing · Takt Time = Demand Rate WIP Inventory Orders Shipments 1...
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The Value of
Cellular Manufacturing
James M. JoynerVice President of Global Operational Excellence
Astec Industries, Inc.
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We Love Infrastructure
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We Love Infrastructure
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Locations Around the World
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Let’s Talk Lean…
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Does this look Lean?
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What is Lean Truly About?
• Doing More with Less• A lot of Kaizen projects• Resource utilization• Keeping people busy working • Kanbans• Focus on being “On-time”• Value Stream Meetings• Training Employees to Gain Buy-In
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It’s About Time
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Reducing Operational Lead-time Across the Value Stream
Order Entry
Engineering Procurement Production Testing Install Get Paid
Customers Will Feel This Difference
Order Entry
Engineering Procurement Production Test InstallGet Paid
Operational Leadtime
Days/Weeks/Months
Apply Lean Concept & Techniques!
It’s About Time
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Takt Time = Demand Rate
WIPInventory
Orders
Shipments
1 Gal. / Hr.
100 Gallons
= 100 Hrs.
50 Gallons
= 50 Hrs.Cycle Time = Avg. time for each unit
to make its way through to the bucket
Less stuff requires Less Space+ there will be fewer drownings!
Takt & Cycle Times
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Takt Time = Demand Rate
WIPInventory
Cycle Time = Avg. time for each unit
to make its way through to the bucket
Orders
Shipments
A. Add another line
B. Open up the spigot
1 Gal. / Hr.
50 Gallons
= 50 Hrs.
Cycle Time = Ability to respond to customer needs
Takt & Cycle Times
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Value Stream AStep 1X Days
Step 2X Days
Step 3X Days
Step 4X Days
Step 5X Days
Step 6X Days
Takt Time (Demand) = One Unit Every X Days
Cycle Time = “first labor applied” to “last labor applied” = xx Days
Value Stream BStep 1X Days
Step 2X Days
Step 3X Days
Step 4X Days
Step 5X Days
Step 6X Days
Takt Time (Demand) = One Unit Every X Days
Cycle Time = “first labor applied” to “last labor applied” = xx Days
Value Stream CStep 1X Days
Step 2X Days
Step 3X Days
Step 4X Days
Step 5X Days
Step 6X Days
Takt Time (Demand) = One Unit Every X Days
Cycle Time = “first labor applied” to “last labor applied” = xx Days
If Demand is 120 Units this year, Takt = 3 Days
Open up the Spigot
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Value Stream AStep 1X Days
Step 2X Days
Step 3X Days
Step 4X Days
Step 5X Days
Step 6X Days
Takt Time (Demand) = One Unit Every X Days
Cycle Time = “first labor applied” to “last labor applied” = xx Days
Value Stream BStep 1X Days
Step 2X Days
Step 3X Days
Step 4X Days
Step 5X Days
Step 6X Days
Takt Time (Demand) = One Unit Every X Days
Cycle Time = “first labor applied” to “last labor applied” = xx Days
Value Stream CStep 1X Days
Step 2X Days
Step 3X Days
Step 4X Days
Step 5X Days
Step 6X Days
Takt Time (Demand) = One Unit Every X Days
Cycle Time = “first labor applied” to “last labor applied” = xx Days
If Demand is 120 Units this year, Takt = 3 Days
Open up the Spigot
If Takt is 3 Days & Cycle is 24 Days, WIP = 8 unitsFind the Contstraints!
If Takt is 3 Days & Cycle is 18 Days… WIP = 6 units
Learn to be comfortable with less WIP!
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40%
30%
30%
50%
50%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
WEEKS
40%
30%
Engineering
Fabrication
30%
Assembly
50%
Testing
50%
Installation
Cost-based Thinking
= Touch Time
= Queue/Wait Time
Minimizing touch time is the goal
Time-based ThinkingSpeed through the Value Stream is the goal
E F A T I
E F A T I
E F A T I
E F A T I
E F A T I
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Process Sequence = 17 Hours CT = Nine Days = 72 Hours
17/72 = 24% Efficiency
Step 1
2 people
@ 3 hrs = 6 TDL
Step 2
2 people
@ 4 hrs = 8 TDL
Step 3
1 person
@ 5 hrs = 5 TDL
Step 4
2 people
@ 2 hrs = 4 TDL
Step 5
3 people
@ 3 hrs = 9 TDL
Total Direct
Labor
Hours = 32
Existing Cycle Time = 9 days (One 8-hour shift per day)
I don’t see
any cost
savings!
Steps 4 & 5
4 people
@ 3.3 hrs
= 13 TDL
Steps 1 & 2
3 people
@ 4.7 hrs
= 14 TDL
Step 3
1 person
@ 5 hrs
= 5 TDL
Total Direct
Labor Hours
= 32
Possible Cycle Time = 2 Days
Process Sequence = 13 Hours CY = Two Days = 16 Hours
13/16 = 81% Efficiency
Queues
Eliminated
& WIP
Reduced
Results: Cycle-time reduced by 80% with 30% fewer people.
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• Cells are created when a value stream is divided into work-centers that combine as much of the manufacturing process as possible.
• The objective is to allow a single work team to build a complete product - from start to finish.
• An ideal cell is self-contained with all necessary equipment and resources.
• Communication is easier since every operator is close to the others. This improves quality, coordination and support.
• Simplicity is an underlying theme throughout cellular design, including material flow. Scheduling, supervision and many other elements also reflect this underlying simplicity.
Cellular Manufacturing
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A different crew for each step. “Labor
Specialization”
Inventory “buffers” between steps.
Run-In
Prep & Ship
Inventory
Grind & Prep
Inventory
Head & Bed
InventoryInventory
Inventory
Paint
Inventory
Electrical Cage
InventoryInventory
Inventory
Plane, Mill, Bore
LayoutDrill
InventoryInventory
InventoryInventoryInventory Inventory
Final AssemblyElectrical Floor Assembly
Final AssemblyElectrical Floor Assembly
Final AssemblyElectrical Floor Assembly
Inventory
Inventory
Inventory
Inventory
Inventory
Sub-Assembly
Inventory
InventoryInventory
InventoryInventory
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Prep & Ship
Inventory is reduced through Pull System
Head & BedFinal Assembly
Electrical Floor AssemblyRun-In
Inventory
Inventory
Inventory
Inventory
Inventory
Electrical CageInventory
InventoryInventory
Sub-Assembly
PaintGrind & Prep
Plane, Mill, Bore
LayoutDrill
InventoryInventory
Inventory
Inventory
Customer Demand Pull
InventoryInventory
Cell Teams assume ownership
from paint to ship
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EPCOTT
Cells
Controller schedule sequenced with Machine schedule
Inventory
Sub-Assembly located next to Machine Shop to reduce movement of parts
Inventory
Inventory
Grind, Prep & Pre-Paint
SNK Super Bridge-Mill:Plane, Mill, Bore, Drill based
on NC Program
Head & BedFinal Assembly
Electrical Floor AssemblyRun-In
Super Cell
Sub-Assembly
Inventory
Inventory Inventory
Prep & Ship
FinalPaint
Team
Customer Demand Pull
Attachments
Super Cell
Super Cell
Super Cell
Super Cell
Super Cell
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Machine Build (Drill to Ship) Cycle Time
63
6872
66
71
66
55
47
42
35
43
36 35
46
41
34
80
20
30
40
50
60
70
80
90
04 Avg Jan Feb M ar Apr M ay Jun Jul Aug Sep Oct Nov Dec Jan Feb M ar Apr
Machine Build Cycle Time as Cellular Implemented
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Lean Objectives• On-time delivery of new machines:
• Manufacturing Cycle time:
• Growth (production value of shipments):
• Productivity (Output per employee):
• WIP:
• Total Inventory turns:
• Nonconformance:
• Service parts shipped on time (by request):
• Set-Up reduction:
• CNC machine utilization:
• Installation time:
Cut by 70% (Smaller Lots – Synchronous Flow – Demand Pull System)
Up 400%
Reduced by 65%
Avg. +15%
Doubled
Up from 70% to 88%
Down by 99% on some machines
Up from <50% to >95% on some machines
Reduced 25%
Reduced by 33%
Consistently up
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Handrail Cell Project Metrics
Before Metrics
• Cycle Time = 1.52 days (avg.)
• Rework = 1.1 hrs. / week
• Floor Space = 1387 sq. ft.
• Travel Distance = 1700 ft.
• # of process activities = 54
• Operators = 1
After Metrics
• Cycle Time = 1.2 hrs. (avg.)
• Rework = 0.1 hrs. / week
• Floor Space = 1159 sq. ft.
• Travel Distance = 92 ft.
• # of process activities = 24
• Operators = 1
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A Cellular Approach will…• Eliminate “transition dead time” (fewer hand-offs)
• Reduce motion (machine & crew moves less)
• Make work easier (no forced sequence)
• Make work faster (better assembly sequence)
• Make work safer (fewer ladders)
• Enhance ownership (expands responsibility)
• Improve communication (better teamwork)
• Reduce work-in-process inventory (one at a time)
• Speed product to the customer (shorter cycle times)
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Create Waves of Excellence
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Session No: ThS/39
The Value of Cellular Manufacturing
Jim Joyner
Astec Industries, Inc.