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Value Stream-2

In Value Stream-1 we looked at the Mass Production example and attempted to rationalize the layout into a Lean system.  The summary of that exercise was as follows -

Summary of Value Stream–                                                 

  Mass Production Lean System
Distance traveled 214 Metres 82 Metres
Value added time 0.47 Minutes 0.67 Minutes
Non-value added time 15,306 Minutes 5,286 Minutes
Value added index 0.003% 0.013%
Factory lead-time 10.6 Days 3.6 Days

To establish the summary, we had to record a detailed step-by-step analysis of the path through each system.

“Oh watch out Spike, here comes Ms PC&L ”.

“What you did not do last time ‘Spike’ was to look at the information flow and the customer requirement”.

To cover these aspects of reviewing the Value Stream let’s examine ANOTHER JOB IN A DIFFERENT PART OF THE FACTORY.

STARTING WITH CUSTOMER DEMAND

Assuming a Customer Demand of 125,000 units / year.                         Customer Demand / day = 125,000 / (20 days/mth. x 12 mths.)                  Customer Demand / day = 521 PIECES / DAY.

This means that we have to make 521 pieces each and every day throughout the year to meet the customer demand.  In Lean Manufacturing we set out to make that number each day – we do not set out to make 1,563 pieces one day and then none for the next couple of days.  It is 521 pieces each and every day.

The next question to ask ourselves is, “Do we make all 521 pieces first thing in the morning, or after lunch or before we leave in the evening”?  The answer is, “We make them all day”.

“Ok, I know that we currently operate the factory on a single shift basis starting at 8:00am and finishing at 4:00pm with 30 minutes for lunch.  Everybody has two; 10 minute breaks during the day.  So that means we have 480 – 30 – (2 x 10) = 430 available minutes / shift.  That is 430 x 60 = 25,800 seconds / shift.”

“Now if we need to make 521 pieces / day and we have a total of 25,800 seconds available / shift we need to make one piece every…. um……” “Hey ‘BEENIE’, come over here!!!”

“If we need to make 521 pieces / day and we have 25,800 seconds available to us we need to make ONE PIECE EVERY 49.52 SECONDS, PRECISELY!   This time is called TAKT TIME and the formula is as follows” –

TAKT TIME = Net Operating Time / Customer Demand                       

In my terms it means -

TAKT TIME = Available seconds per shift / Number of pieces needed per shift

“Not so fast Ms PC&L.  What you’ve forgotten to tell the folks is that the 125,000 parts per year that the customer wanted; need not be one single product.  It can comprise of a range of very similar products that use the same process flow.  If it were a range, the TAKT TIME would apply to each product within the range.  Later on I’ll show you how we group the products and look at other aspects of TAKT TIMES.  Meanwhile please carry on Ms PC&L.”
Spike, I think we had better work together on this look at another part of the factory.  We need to arrive at a sketch that provides an overall picture of the existing Value Stream that includes TAKT Times, Cycle Times and Information Flow.  It may begin to look a bit congested.  Please get the process routings for the assembly being made here and you, Spike, can sketch out the process flow of the component parts and final assembly.”    
“This is the process flow of the various parts and the final assembly.  Part A is purchased and we drill a 3mm hole in the flange.  Part B and D are pressed parts, while part C is an injection-moulded part.” 
“The next question is what are we going to look at? We need to find the longest path (time wise) through the process.”  If we don’t already know that we will have to check each part through to the final assembly.”

“Ok we can see that Part B has the longest path through the process at 23 days.  But before we sketch this up let’s take a look at the TIME LINE.”

Spike, why did you draw a TIME LINE?

Well, take a look at the line and you will see that Part B has the longest path through the process.  When we reduce the time line of Part B through to the dispatch of the final assembly, we need to know how this will influence the whole job.  For example if we reduce time on the assembly from operation 20 onward, the time line of all parts will reduce.  But if we reduce Part B fabrication by more than 5 days, part D will then have the longest flow path.  If we forgot about this we will have told Mr Boss we have reduced the process flow lead-time by “X” amount of time, but in reality we did not.  When Mr Boss realizes this, I will get the blame, I always get the blame around here!  Oh no, Spike, I think you are clever!  “Well, gee thanks!”

Spike, you’ve drawn in the process flow, cycle times and up-time etc. and I’ve put in the information flow.  I have not put in the delivery times from the supplier and to the customer.  In some cases where long distances are involved these factors become very important.”

Well we have drawn a sketch of the current system and have found out that the Production Lead Time through the system is 23 days.  We also know that the value added time is 102.6 seconds for the critical flow, but it is not the total value added time for the complete assembly.  We have also calculated that the TAKT TIME to satisfy the customer demand of 125,000 assemblies per year is approximately 50 seconds.

Is that all we need to know about TAKT TIME?

“NO!”  “When we looked at the TAKT time we assumed that all the machines were available to work on the assembly that we needed to make.  In this example, the assembly machines only work on that assembly but the presses and moulder also work on other products.  Therefore the TAKT time of 50 seconds for the presses and moulder is not valid.  Where machines are shared with other products or product ranges it is necessary to set-up a machine matrix and check its specific TAKT Time e.g.
Press Number 4801 Product A 105,000 / year Cycle time 10 seconds
  Product B 100,000 / year Cycle time 14 seconds
  Product C 110,000 / year Cycle time 11 seconds
  Product D 120,000 / year Cycle time 13 seconds
  Total 435,000 / year  
Assuming one shift operation as previous calculation, the TAKT TIME would be

TAKT TIME = Available seconds per piece / Number of pieces needed per shift

                       = 25,800 seconds / { 435,000 / [20 x 12] } = 14.23 seconds

This means that that press would have to produce a part every 14.23 seconds to meet the customer demand.  From the cycle time shown it would appear that the press could cope because all parts can be made faster than the TAKT Time.  In practice although some of the parts can run even faster than the TAKT TIME you would expect to have to run this on part of a second shift due to UPTIME and CHANGEOVER factors.”

“OK, we now realize in this case the presses and moulder do not relate to the TAKT TIME that we originally calculated.  Ideally we would like to set all the processes to the TAKT TIME but this is not always possible. So let’s look at the assembly processes instead. 

Remember, it is always a good idea to start at the end of the process flow and work backwards when trying to reduce the process flow lead-time.  At the moment all the assembly processes are batched.  Before we decide to flow the job lets study each process.

Returning to “People and Machines” in the first section called “Before Lean”, we can recall that an operation can comprise of the persons time and the machine time.  We looked at various examples of combinations of these two elements.  We will probably have to add a third element, walk time from one process to the next if we decide to flow the processes.  

Remember the TAKT TIME for the assembly was 49 Seconds.  We can see below that each process cycle is considerably less than the TAKT TIME so in this example we may not have to improve each process. Changeover time is not critical for now because the machines only work on this job at the moment.

Can we set this up as a one-piece flow system?  In summary the persons work content is 44 seconds; the machine content is 35 seconds; walk time is 0 seconds and uptime is 8 seconds.  Making a grand total of 87 seconds.  Remember our TAKT TIME is 49 seconds.  The uptime allowance was calculated from the sub total by applying uptime % to it. 

It would appear that we have no problem with each process cycle because in total they do not exceed the TAKT TIME.  In fact they are so low that the processes are obviously idle for much of the week.  The base machine cycles are even lower.  It would appear we do not need to tamper with them.

The question facing us is can we flow these processes using just one person.  The total time needed to perform the manual work is 44 seconds, but added to that would be the walk time from process to process and the effect of the uptime allowance.  If the walk time is 10 seconds (allowing about 1 second or less per metre) and the uptime allowance is 8 seconds, the total cycle time would be 62 seconds.  This is above the 49 seconds but if we could automate some of the manual unloads it may be possible to reach the TAKT target.   
I think I will join you Spike, it is time for a pint!  We will take another look in Value Stream-3.