creating flow through shared resources by kevin j....

Creating Flow through Shared Resources

Kevin J. Duggan, [email protected]

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© 2017 Institute for Operational Excellence. All Rights Reserved.

Kevin J. Duggan

• Renowned expert in applying advanced leantechniques 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, IDEXCorporation and Parker Hannifin

• Featured on CNN and the Fox Business Network• Frequent keynote speaker, master of ceremonies,

and panelist at international conferences

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Kevin J. Duggan

• Kevin has assisted many major corporations worldwide includingFMC Technologies, Chromalloy, Aetna, SpaceX, Caterpillar, Pratt &Whitney, Singapore Airlines, Sikorsky, IDEX Corporation, CNRailroad, Express Jet, and Parker Hannifin

• Frequent keynote speaker, master of ceremonies, and panelist atinternational conferences, and has appeared on CNN and the FoxBusiness Network.

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Continuous Improvement

They Key Question for Continuous Improvement

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If we look for opportunities to improve then over time our CI efforts become…..

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The Lean Journey

SustainImprove

SustainImprove

SustainImprove

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Operational Excellence

Mature lean company

Time in Years

Leve

l of i

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1 5 10

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Time in Years

Leve

l of i

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1 5 10

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The ‘Jump’ to Operational Excellence

Time in Years

Leve

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“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

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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.

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How Did This Happen?

Current State Map

Future State Map

Kaizen

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The Correct Process for OpEx

Current State Map

Future State Map

Apply Guidelines

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Eight Guidelines for End-to-End Value Stream Design

XOXO

Eight VS Guidelines1.

2.

3.

4.

5.

6.

7.

8.

Form Assembly Test Ship

FIFOFIFO

2 days 1 day 1 day 1 day 5 days

2 sec 20 min 10 min 15 min 45 min

DailyWeekly

CustomerSupplier

Production Control6 Week

ForecastWeekly Orders

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Ten Guidelines for the Mixed Model Pacemaker

Ten Guidelines for the Mixed Model Pacemaker

Ten MM Guidelines1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Daily

Pacemaker

CustomerSupplier



XOXO

Form Assembly Test Ship

FIFOFIFO

2 days 1 day 1 day 1 day 5 days

2 sec 20 min 10 min 15 min 45 min

Weekly

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Six Guidelines for Shared Resources Flow

Shared Resource Shared Resource

Form Test

XOXO

Assembly Ship

FIFOFIFO

2 days 1 day 1 day 1 day 5 days2 sec 20 min 10 min 15 min 45 min

DailyWeekly

CustomerSupplier



Six SRF Guidelines

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Nine Guidelines for Office FlowNine Guidelines for Office Flow

Nine Office Guidelines

1.

2.

3.

4.

5.

6.

7.

8.

9.

Customers Customers

Sales Database

email

Design Pkg.Create

File

Log File

P/T=15 min.1 CSR

Request Form

FIFO

4 Hrs.

4 Estimates per Day

L/TP/T

1.5 Days + 187 min

187 min.17 Min. 170 Min.

Max = 1.5 days

P/T=170 min.PC/T=55 min.

Op = 3

Takt = 60 min.

Post Office

0 – 1.5 days

email

Estimating Cell

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Seven Guidelines for Supply Chain Flow

Seven SC Guidelines

1.

2.

3.

4.

5.

6.

7.

Premier Rail Cars

Axle Co. Unlimited (WV)

Practical Solutions (MO)

FIFO

Beijing Walls China

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FIFO FIFOStamp ShipAssembly Test

Welding Molding

InspectionSoldering

Decorating

Introduction to Shared Resources

Six SRF Guidelines

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Normal

Abnormal

Why Do We Design Value Streams?

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Lean and Operational Excellence

Continue to drill deeply to eliminate waste

Ops management spends most of its time on activities that grow the business:

• Brand recognition• Voice of the customer• Solution provider• Technology

improvements

Lean Journey

Lean Journey


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Bridge Lean to Business Growth

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Six Guidelines for Shared Resources Flow

Shared Resource Shared Resource

Form Test

XOXO

Assembly Ship

FIFOFIFO

2 days 1 day 1 day 1 day 5 days2 sec 20 min 10 min 15 min 45 min

DailyWeekly

CustomerSupplier



Six SRF Guidelines

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Introduction to Shared Resources

What is a shared resource?

Process

A process that is responsible for more than one product family

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American Pump current state

factory layout.

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American Pump current state factory layout, material flow:

Cylinder

Medium Pump

Piston

Small Pump

Large Pump

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Value Stream Mapping ReviewThe 4 Step Process

Product Family

Definition

Current State Map

Future State Map

ImplementationPlan

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Part Number Saw (x2)

Grin

d (x2)

Drill

Mill

Machine

Deb

urr

Heat T

reat

CNC Lathe 1

CNC Dua

l Spind

le Lathe

Man

ual D

eburr

Hon

e

Polish

Stam

p

Carburize

Sub Assembly

Paint

Fina

l Assem

bly

Test

Inspectio

n

Ship

767‐577 x x x x x x A x A x x x x458‐743 x x x x A x x A x x x x x187‐192 x x x x x A x x x x x x199‐225 x x x x x x x A A x x x x281‐849 x x A x x x x x x x981‐156 x x x x x x A x A x x x x623‐405 x x x x A x x A x x x x x606‐723 x x x x A x x A x x x x x689‐529 x x A x x x x x x x554‐086 x x x x x A x x x x x x345‐008 x x x x x x x A x x x x x418‐690 x x A x x x x x x x583‐930 x x x x A x x A x x x x x565‐451 x x x x x x A x A x x x x480‐231 x x x x A x x A x x x x x212‐660 x x x x x A x x x x x x799‐398 x x x x x A x x x x x x238‐561 x x x x x x A x A x x x x542‐429 x x x x A x x A x x x x x623‐444 x x A x x x x x x x

Product Family MatrixShared Dedicated

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Part Number Family Sub

Ass

embl

y

Pai

nt

Fin

al A

ssem

bly

Tes

t

Insp

ectio

n

Shi

p Work Content

542-429 Small Pump 10 15 8 15 48480-231 Small Pump 10 15 8 15 48623-405 Small Pump 10 15 8 15 48458-743 Small Pump 10 15 8 15 48565-451 Medium Pump 30 20 16 15 81767-577 Medium Pump 30 20 16 15 81981-156 Medium Pump 30 20 16 15 81238-561 Medium Pump 30 20 16 15 81583-930 Large Pump 45 40 35 15 135606-723 Large Pump 45 40 35 15 135345-008 Large Pump 45 40 35 15 135199-225 Large Pump 45 40 35 15 135799-398 Cylinder 23 100 15 15 153187-192 Cylinder 23 100 15 15 153554-086 Cylinder 23 100 15 15 153212-660 Cylinder 23 100 15 15 153689-529 Piston 25 18 10 5 15 73623-444 Piston 25 18 10 5 15 73418-690 Piston 25 18 10 5 15 73281-849 Piston 25 18 10 5 15 73

Work Content TimesDedicated

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American Pump current state

factory layout, sub-assembly and final

assembly dedicated.

DedicatedShared

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Product Family

Definition

Current State Map

Future State Map

ImplementationPlan

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DedicatedShared

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Product Family

Definition

Current State Map

Future State Map

ImplementationPlan

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Design Guidelines

1. Can we extend the product families?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?

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Shared Resource Analysis

1. Can we extend the product families?

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Machine DeburrAT = 450 minutes

PLT = 414 minutes

Time left for CO

80 minutes125 minutes

Uptime = 6 minutes301

minutes

Manual DeburrAT = 450 minutes (1 Shift)

PLT = 414 minutes

Time left for CO

300 minutesM

Uptime = 6 minutes306 minutes

Sm. Sh.

Lg. Sh.

Cyl.90 minutes

Calculating Machine Load at the Deburr

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Machine Loading

Manual DeburrCNC Lathe

2 I24

I72

4.9 dI

CT=30 min.CO=25 min.UP=95 %

CT=25 min.UP=98 %

A/T = 450 minutes (1 Shift)PLT = 414 minutes

Time left for c/o

300 minutesM

Uptime = 6 minutes306 minutes

The Shaft Branch

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AT = 450 minutes

Time left for CO

CNC Lathe 1AT = 900 minutes

Time left for CO

CNC Dual Spindle Lathe

PLT = 414 minutes PLT = 828 minutes

Uptime = 19 minutes

379 minutes

Uptime = 28 minutes

563 minutesM

SLC

Run time = 360 minutes



Run Time = 200 minutes

The Shaft Branch

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I72

CNC Lathe 1 Manual DeburrI24

CT=30 min.UP=95 %

CT=25 min.UP=98 %

Machine Loading

Assign p/n’s

Assign p/n’s


379 minutes

M. Sh.


M. Sh.

306 minutes

The Shaft Branch

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6 d 2 d

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Design Guidelines



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Grind 1 DrillSaw 1

End Plate & Rotor Process Family

Small Pump Asy

Cylinder Asy

Piston Asy

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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

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Design Guidelines



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Grind 1 DrillSaw 1


Small Pump Asy

Cylinder Asy

Piston Asy

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Small Pump Asy

Cylinder Asy

Piston Asy

Saw/Grind/Drill

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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

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Branch Takt = 18 min./pc.

CT = 8 min.

Saw 1

Time CT = 15 min.

Grind 1

CT = 12 min.

Drill

Branch Takt vs. Cycle Time at the End Plate & Rotor Process Family

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What is the Interval of the Shared Resource?

• EPEI = Every Part Every Interval• How long it will take to produce all the part

numbers within a process family• The smaller we can make the interval, the better

the flow through the shared resource.

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We would compare the total time needed to the available working time (PLT) per interval. Any leftover time can be used for changeovers.

Machine

Time

Total run time

Available time

Planned load threshold

(85% - 95% of available time)

Uptime factor

Total time needed per interval

Time left for changeovers

What is the Interval of the Shared Resource?

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Grind 1

I5 Days

I

Drill

I

CT=8 min.CO= 5 min.UP=95 %

CT=15 min.CO= 15 min.

UP=95 %

CT=12 min.CO= 7 min.UP=100 %

Saw 1

EPEI = 1 dayEPEI = 5 daysEPEI = 1 day

Longest Interval Wins

1 Day5 Days

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American Pump factory layout with Saw 1, Grind 1, and Drill combined into

a cell making small, medium, and large end

plates and rotors.

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Machine Deburr Heat Treat

The Impeller Branch

CT=25 min.

CO= 45 min.

UP=95 %

CT=25 min.

CO= 0.25 min.

UP=98 %

CT=60-240 min.

CO= 50 min.

UP=95 %

Mill

I86

5.7 dI

I36

2.9 dI

I20

1.9 dI

Shared Resource Analysis

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Key Questions


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?

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FIFO

Process BProcess A

Max = 4

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.

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Heat TreatMachine Deburr

Family CT

Cylinder

Small Impellers

Medium Impellers

Large Impellers

18

8

25

29

Connecting the Machine Deburr to the Heat Treat with a Single FIFO Lane

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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”

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Q & A Session

Conclusion

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© 2017 Institute for Operational Excellence. All Right Reserved.

Live Training EventsEach year the Institute for Operational Excellence produces training events throughout the U.S. and Europe.

London, EnglandMay 8-10, 2017

Denver, COJune 12-14, 2017

Anaheim, CAOctober 16-18, 2017

For more information please visit www.instituteopex.org/eventsEmail me at [email protected]

London, EnglandMay 11, 2017

Denver, CO June 15, 2017

Anaheim, CAOctober 19, 2017

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© 2017 Institute for Operational Excellence. All Right Reserved.

Digital Instructor’s GuidesDigital Instructor’s Guides provide consistent, high-engagement training for OpEx classes. Each Instructor will now know:• What flipcharts to draw• What stories and examples to tell• What questions to ask• What demonstrations and exercises they

facilitate• What information is mandatory• And much more…

Available now for:5S – TPM – Creating FIFO – Designing supermarket (Kanban) systems

For more information please visit www.instituteopex.org – OpEx Training –Digital Instructors Guides

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