LEAN_Script_Part1_v12en 2.pdf

Lean Management / Lean Production Methods of Optimisation in Production and Logistics (Part I – Introduction)...

Lean Management / Lean Production Methods of Optimisation in Production and Logistics (Part I – Introduction) Hochschule der Bayerischen Wirtschaft Matthias Pfeffer Version 0.12en DFOE - Lean Production © 2023 - HDBW  Objective of the lecture § Basics of production planning and control § Basic understanding of the factory processes § Design of optimisation measures § Introduction of customer-oriented management § Creating a Lean-oriented view § Important Lean Methods § Flexibility and lead time § Controlling in factory operations § Cost accounting – Process Cost Optimisation DFOE - Lean Production 2 © 2023 - HDBW  Recommended Literature - Ohne, Taiichi: Toyota Prodction System: Beyon Large Scale-Production, CRC 2019 - Hänggi, R.; Fimpel, A; et al.: LEAN Production – Easy and Comprehensive: A practical guide to lean processes explained with pictures, Springer 2022 - Helmold, M.: Lean Management and Kaizen: Fundamentals from Cases and Examples in Operations and Supply Chain Management; Springer 2020 - Kato, Siao; Smalley, Art: Toyota Kaizen Methods: Six Steps to Improvement; CRC 2017 - Schonberger, R.: Best Practice in Lean Six Sigma Process Improvement – A deeper look; 2018 - Janoski, T.;M Lepadatu, D.: The Cambridge International Handbook of Lean Production; 2021 - Rother, M; Shook, J.: Learning to See: Value Stream Mapping to add value and eliminate muda; Lean Enterprise Institute 2003 DFOE - Lean Production 3 © 2023 - HDBW  Agenda Introduction to the topic Basics of lean management (value creation, waste) Excursus: Production planning and control Value stream mapping Production systems Excursus: Types of manufacturing and manufacturing principles Value stream design Selected lean methods of optimisation Flexibility versus capacity utilisation DFOE - Lean Production 4 © 2023 - HDBW  Production in transition Product Volume per "economic production" Fordism, 1914 "quality-conscious production" "flexible production" "fast production" "innovative production" Production today Handcraft production, 1900 Number of products sold/ variants DFOE - Lean Production 5 © 2023 - HDBW  Challenges of the future Strong customer orientation up to Constant relocation and renewal Batch size 1 production of production processes Shorter product life cycles Increase in product variants What does this mean for the production of the companies? More flexibility More effort in administration processes Process optimization Logistics as an competitive advantage DFOE - Lean Production 6 © 2023 - HDBW  Time, costs, quality Growing market demands led to the expansion of the magic triangle. Quality Production targets Costs Time DFOE - Lean Production 7 © 2023 - HDBW  Quality target High product quality Low rework Quality DATA Low failure rates Low error rates Tools: § Six Sigma § Quality control loops § CIP § SPC (Statistical Process Control) § Standardisation of processes § QFD (Quality Function and methods Deployment) § Poka Yoke § ISO 9000 §... DFOE - Lean Production 8 © 2023 - HDBW  Target figure costs Low manufacturing Maximum capacity costs utilisation High Costs... Economic efficiency Low capital High profitability commitment Tools: § Process cost accounting § Life Cycle Cost of Ownership (TCO) § Process cost-oriented § Cost accounting Calculation § Quality costs § Target costing §... DFOE - Lean Production 9 © 2023 - HDBW  Time target Fast delivery times Fast turnaround time High Time... Economic efficiency Quick changeover and Short processing paths adaptability Tools: § Value stream analysis and design § Facility management § Pull production/ Kanban §... § Set-up optimisation DFOE - Lean Production 10 © 2023 - HDBW  Time factor The time factor will continue to play a decisive role in competition in the future. Time in the planning area: Reduction of planning time, start-up time and product development times. Time in operations: Reduction of lead times and procurement times. DFOE - Lean Production 11 © 2023 - HDBW  Agenda Introduction to the topic Basics of lean management (value creation, waste) Excursus: Production planning and control Value stream mapping Production systems Excursus: Types of manufacturing and manufacturing principles Value stream design Selected lean methods of optimisation Flexibility versus capacity utilisation DFOE - Lean Production 12 © 2023 - HDBW  Change to Lean Thinking § What characterises a lean company? § Lean Production / Lean Management § Corporate philosophy § Streamlining the processes § Collection of (simple) methods § Omitting superfluous things (no waste) § Concentration on the essentials (value creation) DFOE - Lean Production 13 © 2023 - HDBW  Lean philosophy "Only produce what the customer wants". Quality § The... § right product § at the right time § in the right place § in the desired (right) quality Production targets § at the right price § in the right quantity § with the right contribution margin Costs Time Customer satisfaction DFOE - Lean Production 14 © 2023 - HDBW  Lean philosophy from "classical thinking" to... "Lean thinking Focus on capacity utilisation Focus on lead time § Conceal /hide problems § Problems are opportunities § Consider stocks as safety § Viewing stocks as a threat § Projects, workshops § Contious Improvements § plan, plan, plan... § Setting Standards, § Fire extinguishing, quality control § Stable processes and self control § 5x who? § 5x why? § Cost Cutting § Cost Managing DFOE - Lean Production 15 © 2023 - HDBW  10 principles of lean management Success has a number of reasons: § Flat hierarchies, decentralised decision-making processes (entrepreneurs in the company) § Products Teams - Process Orientation § Marketable, efficient processes § Pull principle and Kanban § Avoidance of waste and Continous improvements ss c e § Market and customer orientation uc n s § Zero-defect principle a § Focusing on one's own strengths Le § Staff management § Cooperation in partnership DFOE - Lean Production 16 © 2023 - HDBW  Efficient production is quite simple... "All we are trying to do is shortening the timeline..." Taiichi Ohno Toyota Production Chief after WWII A waste of time is the lightest of all wastes... Henry Ford Founder of Ford Motor Company DFOE - Lean Production 17 © 2023 - HDBW  Value creation in the company Value creation Waste Value creation curve (target) Value added curve (actual) Process1 Process2 Process3 Process3 DLZ (target) DLZ (Actual) Time (cycle time or process time) DFOE - Lean Production 18 © 2023 - HDBW  Goal: Short lead time Lead time elements of a production order Lead time production order Laytime Laytime Processing Transport Set-up Processing AGK (after processing) (Before processing) Transitional period Execution time Lead time for 1 working sequence Source: Abels, 2011 DFOE - Lean Production 19 © 2023 - HDBW  Goal: Short lead time / low WIP Lead time Machining time including set-up time Determination of working or value- added times (target times): see also Transport time course „Labour Science“ Checking time Laytime Work process-related idle time Storage time Downtime due to malfunction Downtime due to Human Factors à Problem: long layovers Source: Wiendahl DFOE - Lean Production 20 © 2023 - HDBW  Lean Thinking Processes Staff and culture § For which processes does the customer pay? § How are vulnerabilities identified and exploited? § What is value-adding, what is not? § What is the role of the individual employee? What is important for the customer "Value"? Organisation Supplier management § Who is best placed to make which decision? § How can processes be synchronised across § Who recognises which problems best? operations? § How optimally is capacity and qualification used? § How can processes be synchronised beyond the own company? DFOE - Lean Production 21 © 2023 - HDBW  3M - Muda - Mura - Muri Muda Mura Muda = waste Mura = imbalance Muri Muri = overload DFOE - Lean Production 22 © 2023 - HDBW  Value creation / waste § Value-adding activities make up only a small part of the work process Labour process Value-added Value- § Activities that Non-value- added add value to a added with product obvious § Activities for waste which the Non-value- customer is added with willing to pay hidden waste Concentrate! DFOE - Lean Production 23 © 2023 - HDBW  Value creation / waste § Some types of waste are obvious... Labour process Obvious waste § Proportion of Non-value- Value- activities that are added with added clearly not obvious necessary to add waste value to a product Non-value- Is to be eliminated added with (e.g. rejects, rework, hidden waste inventory, waiting times). DFOE - Lean Production 24 © 2023 - HDBW  Value creation / waste §... other types of waste are more hidden in nature. Labour process Hidden waste Value- § Work that does not Non-value- added add value but has added with to be done under obvious the circumstances waste Can only be reduced, Non-value- e.g. set-up, transport added with times, travel times hidden waste (without product) DFOE - Lean Production 25 © 2023 - HDBW  Value creation / waste Value Added Value-increasing Value-increasing Value-increasing e.g. assembly, development, purchasing, marketing Useful Usefuloutput Useful output output Efforts, Costs Value Added Not value increasing e.g. transport, goods receipt, testing, set-up, tool Supporting change Efforts, Costs performance Value Added Not value increasing e.g. intermediate storage, buffers, transport blind performance between buffers, design changes after release Efforts, Costs Value Added Value-reducing e.g. rework, rejects, defect sequences, sorting Faulty performance inspection, internal and external malfunctions Efforts, Costs DFOE - Lean Production 26 © 2023 - HDBW  Value creation / waste Before After Value creation and waste Separation of value creation and waste are mixed unstructured in the process Value added Waste The separation of value creation and waste enables the concentrated improvement of process flows ("Separate to optimise") DFOE - Lean Production 27 © 2023 - HDBW  Value creation / waste Value-added activities e.g., screwing Cost-increasing activities e.g., search Non-value adding activities e.g., set up DFOE - Lean Production 28 © 2023 - HDBW  Value creation / waste Some critical questions serve to identify non-value-adding parts in the production process: § How many of the activities/functions are necessary to fulfil the task? § How many activities serve to add value and not just to increase costs? Everthing that does not add value is § How many activities really relate to what waste the client sees and what is important to them? DFOE - Lean Production 29 © 2023 - HDBW  What does producing without waste mean? à Focus on lead time Pure processing time: minutes Time at work: Days Order Money § Each process only produces what the next process currently needs. § Direct all improvement activities in the factory to continuously shorten the lead time. à Processes must be coordinated with each other (internally and externally)! DFOE - Lean Production 30 © 2023 - HDBW  Individual performance against system performance Everyone works to the same beat => The ship of production strives steadily and stably along the planned course Individuals work particularly fast => The ship of production goes into a spin Consequences: § Different lead times, § Opposing staff goals, § Synchronisation losses (high stocks), § Unbalanced capacity utilisation, § Poor achievement of objectives (e.g. failure to meet deadlines) DFOE - Lean Production 31 © 2023 - HDBW  Workload orientation vs. process orientation Workload / capactiy orientation: Process orientation: § Departmental view § Customer orientation § Utilisation of areas / machines § Process view - sub-processes / processes § Productivity for each cell / machine § Optimisation across departmental / divisional boundaries § Cost centre-based optimisation § Process-oriented calculation on the basis of workflows § Overhead costing on the basis of overheads per cost centre § Avoiding waste DFOE - Lean Production 32 © 2023 - HDBW  Basic idea: Take the customer's point of view ! à What is the value stream in the company? § Start at shipping and proceed upstream! (and not, as is usually the case, along the material flow, starting at delivery). § The customer view determines the requirements for production § The respective downstream processes are "pacemakers" for the upstream processes § The value stream branches upstream, since a product usually has parts from several source processes: unique starting point § Easier understanding, as it is easier to ask "how?" about the outcome or purpose of a process. DFOE - Lean Production 33 © 2023 - HDBW  Process & Value Stream Improvement What is a value stream? Ø All activities that are necessary to bring a product from the raw material (process start) into the hands of the customer (process end). Value Strea PROCESS PROCESS PROCESS Customer Punching Welding Assembly Raw material Product DFOE - Lean Production 34 © 2023 - HDBW  Process & Value Stream Improvement Optimisation of the value stream by shortening the lead time § The lead time (DLZ) is the amount of time a product takes from goods receipt to goods issue. § Reduction of DLZ through shorter cycle and demurrage times leads to lower inventories and efficient processes. Lead time Cycle time Laytime Customer Punching Welding Assembly Raw material Product DFOE - Lean Production 35 © 2023 - HDBW  Composition of the lead time Lead time Machining time (including set-up) Transport time Control time Laytime / waiting Laytime due to work process Storage time Laytime due to disruptions lying time due to human activity DFOE - Lean Production 36 © 2023 - HDBW  Example - Reduction of throughput time through flow production DFOE - Lean Production 37 © 2023 - HDBW  Value creation & waste What does work consist of? Value-adding activities: à Parts of the work that the client is willing to do (useful power). Non-value-added activities: § Mounting of components à parts of the work that is currently Optimise § Mounting devices being done must be provided (support power). § (Functional tests) §..... § Conversion of vending machines § Converting solder frames § Inserting parts § Unpacking parts § Obvious waste: §...... à Parts of the work that are totally unnecessary Eliminate (reactive power, faulty power). Reduce § Failures § Misplacement and incorrect placement § Repairs § Waiting times §...... DFOE - Lean Production 38 © 2023 - HDBW  7 types of waste - TIMWOOD T Transport (Transport) Movement of material does not increase its value I Inventory (stockkeeping) Space, money, risk, management M Motion (movement) Unnecessary movement is a waste (e.g. fetching material!) Waiting material does not flow through value-added W Waiting (waiting times) workflows Overprocessing (unnecessary If not value-adding from the customer's point of O processes) view (e.g. intermediate cleaning) O Overproduction Produce what is not needed D Defects (rejects, rework) Obstructs flow and costs time and effort DFOE - Lean Production HDBW - M. 39Pfeffer39 © 2023 - HDBW  Value creation & waste Overproduction What do you think, Not worth- what percentage of the time that a material takes through creative activity Rework the entire process is worked on in a value-adding way? possibilities e im Sto gt cks ai tin or t M W ov nsp em en Tra t Goods Receipt Shipping Time DFOE - Lean Production HDBW - M. 40Pfeffer40 © 2023 - HDBW  Value creation & waste >95% Less than 5% of all activities in production / logistics are Overproduction value-adding. Nevertheless, we care Not worth- usually focus their improvement efforts around this 5% creative activity Rework possibilities and ignore 95% of the opportunities! e im Sto gt cks ai tin or t M W ov nsp em Tra en t < 5% DFOE - Lean Production 41 © 2023 - HDBW  Overproduction More Produce as required for the next process Formerly / Earlier Produce as required for the next process Faster Produce as required for the next process DFOE - Lean Production 42 © 2023 - HDBW  Waste in the process: Stock Raw Product material Production Stock Process Equip safety Variants Quality Transport Bad Machines breakdowns problems routes Planning = Large amount of stock lead to more handling, greater space requirements, tied- up capital and resources. à The reduction of inventories makes problems visible and thus prompts continuous improvement at critical points in production. DFOE - Lean Production 43 © 2023 - HDBW  Opportunities and risks of stock System reference external internal Stock valuation § Bridges disruptions and ensures capacity utilisation § Creates flexibility (enables (especially with changing bottlenecks) Opportunities individual, quick lifts) § Enables set-up optimisation § Dampens fluctuations in demand with regard to quantity and the mix of days § increased risk of tipping § Long average lead times with large dispersions increase Risks § Long, medium delivery times planning and control efforts and large delivery time controls § Increases the capital commitment (with manufacturing on § Conceals disruptions, failure-prone processes, errors in demand) the production process and uncoordinated capacities Source: Dissertation H.H. Wiendahl DFOE - Lean Production 44 © 2023 - HDBW  Process and System Kaizen § Elimination of waste § Order and cleanliness Reduction of throughput times Standardi sation § Standardisation Order & Cleanliness Value § Value stream design stream design Elimination Waste Process System Kaizen Kaizen DFOE - Lean Production 45 © 2023 - HDBW  Continuous improvement processes stem from the Kaizen idea DFOE - Lean Production 46 © 2023 - HDBW  Bringing Kaizen to life 4 typical steps to success... Go to Gemba Watch Gembutsu Search for Muda Do KAIZEN Workshop, office, place of The real things Losses, wastage Continuous improvements action Repeat the steps continuously DFOE - Lean Production 47 © 2023 - HDBW  Lean Thinking - The five most important principles Fil m To as t 1. Customer orientation The customer only pays for those activities that directly fulfil his needs, i.e. are value-adding from the customer's point of view. à Serve the needs of the customer! 2. Identification of the value stream Activities that do not add value are waste and must be eliminated. à Concentrate on value-adding activities! 3. The flow principle Avoid interruptions, detours, reflows and waiting times. à Organise continuous processes! 4. Pull principle Avoidance of overproduction or misproduction through demand-oriented service provision. à Produce according to customer needs! 5. Striving for perfection Since customer needs, technologies and staff know-how are constantly changing, one must also constantly question whether the once optimised processes are still efficient. à Continually look for opportunities for improvement! DFOE - Lean Production 48 © 2023 - HDBW  Agenda Introduction to the topic Basics of lean management (value creation, waste) Excursus: Production planning and control Value stream mapping Production systems Excursus: Types of manufacturing and manufacturing principles Value stream design Selected lean methods of optimisation Flexibility versus capacity utilisation DFOE - Lean Production 49 © 2023 - HDBW  Definition „Planning“ Planning § Planning is the determination of an intended course of action or the mental, purposeful, systematic anticipation of future economic action. § Production planning is the systematic search for and definition of goals for production, the preparation of production tasks and the definition of the process to achieve these goals. [VDI] § Planning types: Strategic Operative Long term Short term Characteristics Uncertain Relatively certain Top-Management Middle-Management Products Income / Espenses Goals Markets Supply reliability Technologies Quality Source: Abels, 2011 DFOE - Lean Production 50 © 2023 - HDBW  Definition "Control“ Control Is the purposeful influencing of a system by will enforcement of the mental order (the plan) into reality. Regulation: is the control with continuous feedback and adjustment, i.e. with corresponding correction of deviations in the target-actual comparison. Production control: Is the purposeful influencing of the production system to implement the production long- and short-term plan,"i.e. the initiation, monitoring and securing of the execution of production tasks with regard to demand (quantity, deadline), quality, costs and working conditions". Initiating is a deadline-oriented triggering of task execution for a defined task owner with allocation of the required operating resources Monitoring consists of determining task fulfilment or deviations of the actual data from the target data. Ensuring consists of measures to avoid or reduce target-actual deviations. DFOE - Lean Production 51 © 2023 - HDBW  Objectives and requirements of production planning and control § High adherence to delivery dates § High and even capacity utilisation § Short lead time § Low stock levels § Low WIP (Work-in-process / Work-in-progress) § High readiness to deliver or ability to deliver § High willingness to provide information § High flexibility § Low procurement costs § High material availability § Increasing planning security DFOE - Lean Production 52 © 2023 - HDBW  Basic terms PPC & ERP Companies using different systems to fullfil these requirements, e.g. Enterprise Resource Planning (ERP): § ERP (Enterprise Resource Planning) systems are software packages that integrate all company-wide processes such as controlling, financial accounting, purchasing, materials management and others. § For planning (and control), ERP systems offer functionalities similar to PPC systems. Production Planning and Control (PPC): § PPS (production planning and control) refers to all tasks for planning, controlling and monitoring production processes. § From quotation processing to dispatch, § from a quantity, deadline and capacity point of view, § PPS is no longer conceivable today without the use of computer-aided systems. Also in use: Advacend Planning Systems (APS) and / or Management Execution Systems (MES) and others… DFOE - Lean Production 53 © 2023 - HDBW  Classification of PPC goals according to main objectives Market targets High delivery readiness / High adherence to delivery dates Operational goals High capacity utilisation High economic efficiency Low inventory levels (WIP) Short lead times DFOE - Lean Production 54 © 2023 - HDBW  Change of objectives in the PPC high on-time High on-time delivery delivery Low stock Low stock high Short lead High Short lead utilisation time utilisation time Past Today Utilization (Workload) orientation à Flexibility (Time) orientation DFOE - Lean Production 55 © 2023 - HDBW  Order origination § An order is a written or oral request from an authorised body (entity) to another body of the company to perform a specific task. § Examples: § Procurement order § Production order § Assembly order § Trigger for the creation of the order: § Orders from individual customers § Programmes that reflect the needs of many anonymous customers (stock replenishment) § Own use DFOE - Lean Production 56 © 2023 - HDBW  Overview of order types Demand for pre- Demand on the advised precast Own operational sales market elements (secondary requirements (primary demand) demand) Individual, specific Individual, specific Many anonymous Multiple use of FT in Order solution areas of the clients customers articles company Part-related gross/net Economic efficiency Request Market research analysis and purchase order Offer Order Sales programme invoice Operating order Customer- Programme- and Parts and stock- Type of production oriented stock-oriented oriented production production production Stock replenish- Stock replenish- Type of order Customer order Internal order ment order ment order Order by Order by Order through purchase order Order through customer order programme on invoice to parts own operation sales warehouse warehouse Make-to-order Replacement Example Serial production with production with orders for missing low high mechanisation, many warehouses, parts, operating mechanisation, order for mass production subcontracting maintenance DFOE - Lean Production 57 © 2023 - HDBW  Order types in individual levels Customer order Customer order based Operating order based on a on a production Company level purchase order programme due to own need Production area Development Production Production Procurement order order order oder level Parts Assembly production Workcenter level order order Work- Work- Work- Work- Work- Work- Workplace level shop shop shop shop shop shop order order order order order order Source: REFA DFOE - Lean Production 58 © 2023 - HDBW  Central questions of the PPC § Which products are to be produced in which quantities and time periods? § When do orders, materials, work equipment and labour have to be provided? § How should work be distributed to the workplaces in a timely manner and on schedule? § What ressources (internal / external) are needed to fullfil the requirements? DFOE - Lean Production 59 © 2023 - HDBW  Functions of production planning and control Production planning § Production programme planning: Determination of the finished products to be produced according to type, quantity and deadline § Quantity planning: Determination of the parts and assemblies to be manufactured as well as the materials to be procured § Scheduling and capacity planning: Determination of the start and finish dates for the operations Production control § Order initiation: Release of orders for production based on their planned completion dates after an availability check of the required materials, assemblies and tools. § Order monitoring: control and regulation of orders DFOE - Lean Production 60 © 2023 - HDBW  The PPS task model at a glance Core tasks Cross-sectional tasks Production programme planning Order coordination PPC controlling Warehousing Production requirements planning External procurement Own demand planning and control planning and control Data management The core tasks drive the Cross-cutting tasks serve cross- Order processing ahead divisional integration & optimisation DFOE - Lean Production 61 © 2023 - HDBW  Core tasks § Target tracking (delivery reliability, delivery time, delivery quality, etc.) § Production programme planning (long-term) § Production requirements planning (medium-term) § In-house production planning and control (short-term) § External procurement planning and control (short-term) DFOE - Lean Production 62 © 2023 - HDBW  Principle procedure of the PPS - 1 Customer orders Sales forecasts Bauer AG Müller OHG Meier GmbH Production programme planning § (sales planning) and triggering of demand at item level § Reconciliation with stock levels § Rough check and comparison with available resources Production programme DFOE - Lean Production 63 © 2023 - HDBW  Basic procedure of the PPS - 2 Production programme Production requirements planning Quantity planning: § Triggering of finished product requirements on assemblies and parts § Comparison of requirements with available stocks § Determination of optimal procurement quantities and triggering of procurement Scheduling and capacity planning § Lead time scheduling and dispatching of requirements to resources § Matching capacity demand and supply § Sequencing Procurement programme Procurement programme for external production for in-house production DFOE - Lean Production 64 © 2023 - HDBW  Principle procedure of the PPS - 3 Procurement programme for Procurement programme for external production in-house production External procurement In-house production planning planning and control and control § Selection of suitable suppliers § Order release § Order release and order § Document preparation and work § Order monitoring distribution § Order progress monitoring Order Workshop order Feedback Feedback Internal material flow Parts Intermedi Finished Goods Custom Supplier productio ate Assembly goods Shipping receipt er n storage warehouse DFOE - Lean Production 65 © 2023 - HDBW  Agenda Introduction to the topic Basics of lean management (value creation, waste) Excursus: Production planning and control Value stream mapping Production systems Excursus: Types of manufacturing and manufacturing principles Value stream design Selected lean methods of optimisation Flexibility versus capacity utilisation DFOE - Lean Production 66 © 2023 - HDBW  Optimisation of Value Streams What is Value Stream Management / Value Stream Mapping? § Structured method for optimising production and logistics based on Toyota Production System and principles of Lean Production § It is used to record and design holistic value flows (material and information flows) § It has the goal of developing an ideal target state for production with short throughput times § and to derive necessary implementation measures. DFOE - Lean Production 67 © 2023 - HDBW  Basic symblos for a value stream Production Supplier planning Electronic (external) PPS information flow Pressing ABC GmbH plant Truck Information Tue & Fri delivery flow Cologne Customerplant 1x/day Punching Assembly I I I Stock Working time Material "Push Working time Cycle time Cycle time Process box (quantity Set-up time Set-up time e and current Machine feed Machine feed Data box dt im Lea value t im e ing noted) cess Pro DFOE - Lean Production 68 © 2023 - HDBW  Basic steps of the value stream method Reference product select Value stream mapping Current status of production (actual state) Value stream design Concept for optimised (target state) production Implementation projects Cf. K. Erlach, Value Stream Design, 2007 DFOE - Lean Production 69 © 2023 - HDBW  Methods for the formation of product families Reference product from a product family. Formation of product families usually based on production flow or demand ABC-XYZ-analysis) 1. segmentation according to production flow 2. segmentation according to number of units/turnover Presses Pre- Assembly 1 Assembly 2 Painting Renner 20000 assembly Product A X X X X Product B X X X X 10000 Product C X X X X Exotic 5000 Product D X X X X Product E X X X x 500 300 200 Product F X X X X X Produkt A Produkt B Produkt C Produkt D Produkt E Produkt F Other possibilities for segmentation can be, for example, product characteristics or markets. 1 1 Cf. K. Erlach, Wertstromdesign, 2007 DFOE - Lean Production 70 © 2023 - HDBW  Drawing the actual state Representation of the actual state Reference product § Understanding of the current functioning of the work select § Material and information flows § Draw with symbols Value stream mapping (Actual state) § Starting from "gate to gate § Walk along the river yourself, drawing by hand, with pencil Value stream design § No standard times! (target state) § Basis for the next step § Analyse a similar value stream for new products Implementation projects DFOE - Lean Production 71 © 2023 - HDBW  Typical steps for the as-is drawing § Determine customer information § Quick walkthrough to identify the sequence of the main processes § Request process information and stock quantities on site § Draw in subcontracting § Enquire about control and information flow (How do the processes know what to produce?) § Clarify material transfer (Where is material passed on uncontrolled to the next process? -> "Push principle") § Calculate lead time DFOE - Lean Production 72 © 2023 - HDBW  Typical questions at the Gemba walk § What is the cycle time of the process? § What are the set-up times of the machine? § What is the availability? § How high are the stocks between and in the individual production steps? § Number of employees? § Number of product variants? § Available working time/ shift work? § Scrap rate / rework rate? § Information flow: how does the process know when to produce what? DFOE - Lean Production 73 © 2023 - HDBW  Modelling the customer using the customer cycle Objective: Example: Kühler AG, Darmstadt Achieve production oriented to customer needs Calculation: CarFeuerbach Kraft GmbH, AG Standard PF: Coupling d cooler ämpfungsfedern Modelling of the customer with calculation of the 25 variants 55 variants customer cycle SET 9 261 265 100,000 pcs./a FT = 250 d/a Available operating time per year AZ = 21 h/d Customer cycle = CT = 21h*250d / 100,000 pcs. Customer demand per year = 189 sec./pc. Cf. K. Erlach, Value Stream Design, 2007 DFOE - Lean Production 74 © 2023 - HDBW  Case study: Stamping Company DFOE - Lean Production 75 © 2023 - HDBW  Case study: Stamping Company Stanz AG produces various components for car assembly. This case study concerns a product family - a steel dashboard support in two versions, one each for left-hand drive and right-hand drive models of the same car. Variant 1 Variant 2 DFOE - Lean Production 76 © 2023 - HDBW  Case study: Stamping Company Assembly plant Stamping Co. Stuttgart Cologne plant Customer needs: Working hours: 18,400 pieces per month 20 days per month - 12,000 per month "Left" Two shifts a day in all production - 6,400 per month "Right departments The customer's plant runs two shifts a day 8 hours per shift; overtime if required The assembly plant receives a daily Two 10-minute breaks per shift. delivery by truck Manual processes come to a The customer orders in 20 units standstill. DFOE - Lean Production 77 © 2023 - HDBW  Case study: Stamping Company Punching Welding 1 Welding 2 Assembly I Assembly II Shipping Ruhr AG Stuttgart 6) Shipping department (for all product families) 3) Spot welding station 2 (for this product family) - Disposition from the finished goods warehouse and - Manual process with one employee preparation for dispatch by truck - Cycle time: 46 sec. - Set-up time: 10 min (change of clamping device) - Machine reliability: 75% 5) Assembly station II (for this product family) - Inventory today: 1,600 pieces "Left", 850 pieces "Right". - Manual process with one employee - Cycle time: 40 sec. 2) Spot welding station 1 (for this product family) - Set-up time: none - Manual process with one employee - Machine reliability: 100% - Cycle time: 39 sec. - Stock of finished parts in the warehouse today: - Set-up time: 10 min (change of clamping device) - 2,700 pieces "Left - Machine reliability: 100 - 1,440 pieces "Right Remark: - Inventory today: 1,100 pieces "Left", 600 pieces "Right". All processes are carried out with 4) Assembly station I (for this product family) 1) Stamping / Punching (produces parts for many Stamping Company products) one employee per - Manual process with one employee - Cycle time: 10 sec. (6 pieces/min.) shift! - Cycle time: 62 sec. - Set-up time: 60 minutes - Set-up time: none - Automatic 200-tonne press with coil feeder - Machine reliability: 100% - Machine reliability: 85 - Inventory today: - Inventory today: - 1,200 pieces "Left", 640 pieces "Right - 5 days unpunched coils - 4,600 finished punched parts "Left", 2,400 finished punched parts DFOE - Lean Production "Right © 2023 - HDBW 78  Case study: Stamping Company Ruhr AG Stuttgart Customer information Das Bildelement Supplier processes: Stamping mit der Beziehungs-ID Co rId3 wurde in Tues. and der Datei nicht Thurs. gefunden. Ruhr AG supplies Stanz AG with steel coils every Tuesday daily and Thursday. Punching Welding 1 Welding 2 Assembly 1 Assembly 2 Shipping Steel- 1 4600 "L" 1 1100 "L" 1 1600 "L" 1 1200 "L" 1 2700 "L" Coils 2400 "R" 600 "R" 850 "R" 640 "R" 1440 "R" 5 days ZZ=10 sec. ZZ=39 sec. ZZ=46 sec. ZZ=62 sec. ZZ=40 sec. RZ=60min RZ=10 min. RZ=10 min. RZ=0 RZ=0 MZ=85% MZ=100% MZ=75% MZ=100% MZ=100% 27,600 sec. 2 layers 2 layers 2 layers 2 layers available 27,600 sec. 27,600 sec. 27,600 sec. 27,600 sec. EPEI=2weeks available available available available DFOE - Lean Production 79 © 2023 - HDBW  Case study: Stamping Company Production planning at STANZ AG External planning: § Receives a 90/60/30-day advance notice from the customer and enters it into the PPS system. § Forwards a 6-week plan to the Ruhr AG via the PPC. § Secures the coil steel by weekly Mail order to Ruhr AG. § Receives daily binding order from the Stuttgart plant. § Issues a daily delivery schedule to the shipping department. Internal planning: § Creates weekly PPC targets for the departments based on customer orders, work-in-process inventory, finished goods inventory and expected production losses (scrap, downtime). § Passes on the weekly production plan to the punching shop, welding shop and assembly. DFOE - Lean Production 80 © 2023 - HDBW  Case study: Stamping Company Push control Pull control § Central Planning Unit § Decentralised control § Product on order § Production on demand (e.g. KANBAN) Order Order Order Process Process Process Process 1 2 1 2 Product DFOE - Lean Production 81 © 2023 - HDBW  Case study: Stamping Company 6 weeks preview Production planning 90/60/30-day preview Ruhr AG Stuttgart 1x weekly daily Customer information Weekly plan Tues. and Thurs. daily daily Punching Welding 1 Welding 2 Assembly 1 Assembly 2 Shipping Process information Process information Process information Process information Process information Question: Push or pull control? DFOE - Lean Production 82 © 2023 - HDBW  Case study: Stamping Company Punching Welding 1 Welding 2 Assembly 1 Assembly 2 Shipping Process information Process information Process information Process information Process information PUSH § Each process is "planned" and executed independently of one another (regardless of whether the next process currently needs the material or not). § Work is being done towards a forward view. DFOE - Lean Production 83 © 2023 - HDBW  Case study: Stamping Company § Focus on lead time Punching Welding 1 Welding 2 Assembly 1 Assembly 2 Shipping Steel- 1 4600 "L" 1 1100 "L" 1 1600 "L" 1 1200 "L" 1 2700 "L" Coils 2400 "R" 600 "R" 850 "R" 640 "R" 1440 "R" 5 days ZZ=10 sec. ZZ=39 sec. ZZ=46 sec. ZZ=62 sec. ZZ=40 sec. RZ=60min. RZ=10 min. RZ=10 min. RZ=0 RZ=0 MZ=85% MZ=100% MZ=75% MZ=100% MZ=100% 27,600 sec. 2 layers 2 layers 2 layers 2 layers available 27,600 sec. 27,600 sec. 27,600 sec. 27,600 sec. EPEI=2weeks available available available available Lead time Stock 4600 pc + 2400 pc Range = = 7.6 days Customer demand per day 920 pcs./day DFOE - Lean Production 84 © 2023 - HDBW  Case study: Stamping Company 6 weeks preview Production planning 90/60/30-day preview < Ruhr AG Stuttgart 1x weekly daily Customer information Weekly plan Tues. and Thurs. daily Ongoing Measures daily Punching Welding 1 Shipping < Potentials Welding 2 Assembly 1 Assembly 2 Steel- 1 4600 "L" 1 1100 "L" < 1 1600 "L" 1 1200 "L" 1 2700 "L" Coils 2400 "R" 600 "R" 850 "R" 640 "R" 1440 "R" 5 days ZZ=10 sec. ZZ=39 sec. ZZ=46 sec. ZZ=62 sec. ZZ=40 sec. RZ=60min. RZ=10 min. RZ=10 min. RZ=0 RZ=0 MZ=85% MZ=100% MZ=75% MZ=100% MZ=100% 27,600 sec. 2 layers 2 layers 2 layers 2 layers available 27,600 sec. 27,600 sec. 27,600 sec. 27,600 sec. EPEI=2weeks available available available available Lead time 5 days 7.6 days 1.8 days 2.7 days 2 days 4.5 days 23.6 days 10 Sec 39 Sec 46 Sec 62 Sec 40 Sec 197 seconds Process time DFOE - Lean Production 85 © 2023 - HDBW  Case study: Stamping Company study: Stanz AG § Flow rate as an important parameter Lead time 5 days 7.6 days 1.8 days 2.7 days 2 days 4.5 days 23.6 days 10 Sec 39 Sec 46 Sec 62 Sec 40 Sec 197 seconds Process time Lead time Flow rate = Processing time 23.6 days 23.6 * 16 h * 60 minutes * 60 seconds Flow rate = 197 seconds = 197 seconds = 6,900 (with 16 h) = 23.6 * 2* (8h * 60 min - 20 min) / 197 Sec = 6,613 à Lead time and flow rate as one of the most important parameters in lean optimisation! à All projects / improvement measures should have a positive influence on these two parameters! DFOE - Lean Production 86 © 2023 - HDBW  Agenda Introduction to the topic Basics of lean management (value creation, waste) Excursus: Production planning and control Value stream mapping Production systems Excursus: Types of manufacturing and manufacturing principles Value stream design Selected lean methods of optimisation Flexibility versus capacity utilisation DFOE - Lean Production 87 © 2023 - HDBW  What is a (holistic) production system? Fil