Optimizing High-Mix Low-Volume Operations Shahrukh A. Irani Department of Integrated Systems Engineering The Ohio State University Columbus, OH 43210 PHONE: (614) 688-4685 EMAIL: [email protected] WEBSITE: http://ise.osu.edu/biosketch_SIrani.cfm Agenda Types of Manufacturing Systems What type of manufacturing system do you manage? What makes jobshops (high-mix, low-volume, MTO) different from any “Toyota-type” plant? Limitations of the (Toyota)Lean tools Examples of high-mix low-volume (HMLV) manufacturing systems CASE STUDY: Optimization of the layout of an entire plant CASE STUDY: Optimization of the setup on a press A Toolbox for High-Mix Low-Volume Manufacturers QUANTITY (Volume) Spectrum of Manufacturing Systems Assembly Lines or Transfer Lines Flexible Flowshops Manual Cells High Flexible Mfg.Cells Jobshops Low Low High MIX (Variety) MIX (R) Outliers In a Part Family What is Your Manufacturing System? P Lean for Toyota ≠ Lean for Jobshops • Jobshops ≠ Assembly Facilities – – – – – – High mix of products i.e. many different routings Part families may not be known Product mix segmentation must be done Setup times, cycle times, lot sizes, etc. vary significantly Wide variety of product designs and equipment types Typical facility has a Process Layout (= batch-and-queue) • Different (and Difficult) Business Environment – – – – – – Demand is unstable Lot sizes change Customer loyalty and sanity are non-existent Production schedules are driven by due dates (not Takt Time) Shifting capacity constraints Due dates are different and subject to frequent changes Many Lean Tools are NOT Universal Strategic Planning Top-Down Leadership Motivated Workforce 5S Total Productive Maintenance Setup Reduction Error-Proofing Quality at Source Visual Workplace Right-sized Equipment Standardization of Work X Right-sized (= Inflexible) Machines X Kaizen Events (Mainly by Operators) X 20th (not 21st) Century Managers X Pencil-and-Paper Problem Solving X Value Stream Mapping X One-Piece Flow Cells X Product-specific Kanbans X FIFO Sequencing of Orders X Pacemaker Scheduling X Inventory Supermarkets X Scheduling using Takt Time X Heijunka/Load Leveling X Assembly Line Balancing How to Recognize a High-Mix Low-Volume Manufacturing System? Forge Shop (≈500 Routings) MTO Industrial Scale Fabrication Facility 761 HSTUD/ 761PEM LASER 761AMADA 761 FORM 764BURNM 761PUNCH 770PANG 761 761 DBURR TWELD 761 POLSH 761 SPWLD 761ASY 764BRAKE 764SHR20 764UNPUN 764SUBMR 764BEVLR 812ASM 764PSMA 764CDROB 770WHLBR Z 763DRLPR 763SHR16 763PRBRK Y 763BDSAW 763ACRO Y Z 763FSROB 770MODBO 764/763 WELDM 763IRONW 763 MONRC X X 763 MON45 771 VIKIN 771 SNDBL STORAGE LOCATIONS 771 FSWHL 771HCFIN/ 771TEXTR 811ASM Shipping Flexible Machining Cell 2 3 1 6 4 5 7 9 8 10 11 12 Finish Grinding Department Factory Layout Optimization at Ulven Forging Current State Future State Actions Taken An additional processing area was created in the Drop Hammer building where cleaning,finishing,packaging and shipping were consolidated. The 158 ton Trim Press was replaced by a 440 ton press that was positioned next to the 5000# Hammer. This eliminated the transportation of large forgings to a distant 350 ton Trim press. Also, a 350 kW induction heater and conveyor were purchased and co-located with this press to form an Upset Forging cell. A new 2.5” Upsetter was purchased and positioned next to the 3000# Hammer to form an Upset Forging cell. Actions Taken (contd.) The 1.5” Upsetter was replaced with a faster machine and positioned next to the 700 ton Press to form an Upset Forging cell. A crane was installed over the 5000# Hammer to reduce piston change-out time, reduce die key tightening time and to facilitate product movement in the area. A portable Marvel Hacksaw and 1.5” Bar Shear were acquired. A CNC Mill was acquired and positioned next to the EDM machine to reduce vendor costs and lead times for die sinking. Benefits Approximately 5% cost savings on annual sales of $ 6 million WIP reductions were significant Lead times quoted to customers were reduced Throughput ($ales) increased Since this company is a defense supplier, they were reluctant to release financial and delivery performance data that could be seen by their customers (Defense Logistics Agency and Department Of Defense) Press Setup Optimization at Hirschvogel Observe and Document the Press Setup Work Locations around the Press Sequence of Tasks in Press Setup Operator Motion Traffic around the Press New Workstation Layout for the Press 5 14 11 15 1 10 12 8 17 22 9 16 7 6 Operator Motion in Previous Layout Operator Motion in New Layout Press Setup Time: Before vs. After Activities Operations Inspections Transport. Storage Delays Total Current Process No. Time % 247 1:32:07 71% 32 0:11:28 9% 135 0:17:54 14% 0 0:00:00 0% 12 0:09:01 7% 426 2:10:30 100% Redesigned Process No. Time % 235 1:28:53 79% 31 0:11:23 10% 92 0:12:45 11% 0 0:00:00 0% 0 0:00:00 0% 358 1:53:01 100% Difference No. Time -12 -0:03:14 -1 -0:00:05 -43 -0:05:09 0 0:00:00 -12 -0:09:01 -68 -0:17:29 20:10 Initial Time Taken Time (in min.) 17:17 14:24 11:31 08:38 05:46 02:53 00:00 Revised Time Taken Estimation of Increased Production Potential Increase in Production = [EPT – (# of Setups * Time/Setup)] / Cycle Time per Part 22,500 20,000 Number of Parts Produced 17,500 15,000 12,500 10,000 7,500 5,000 2,500 0 0 5 10 15 20 25 30 Number of Setups 35 40 45 50 Estimation of Increased $ales Potential Increase in Revenue = [EPT – (# of Setups * Time/Setup) / Cycle Time per Part] * $/Part $350,000.00 Revenues from Extra Production $300,000.00 $250,000.00 $200,000.00 Lowest Revenue per Part Average Revenue per Part $150,000.00 Highest Revenue per Part $100,000.00 $50,000.00 $0 5 10 15 20 25 30 Number of Setups 35 40 45 50 Benefits Savings in Setup Time Category Initial Proposed % Decrease Setup Time (min) 130.5 60.86 53.3% Number of Activity Steps 426 358 16.0% Distance travelled by Operator (steps) 1167 797 31.70% Potential Increase in Revenue Part # Demand Price/ Part A1234 B3456 D6755 6,000 3,300 7,500 $ $ $ Extra Parts 16800 Extra Revenue 15.55 7.00 12.50 Revenue $ $ $ 93,300.00 23,100.00 93,750.00 $ 210,150.00 Parallel Task Scheduling for Press Setup 1 Operator 113.02 min (Current State) 2 Operators 60.86 min (Parallel Execution of Activities) 3 Operators 60.86 min (Unnecessary, 2 operators are OK) Gantt Chart for Optimized 2-Person Setup Process Op #1 Op #2 Optimization could Enhance Every Lean Tool Value Stream Mapping Multi-Period Slotting of Orders Demand Forecasting Work Order Release Current Project at Pompano Beach Warehouse Design Work Center Scheduling WIP Inventory Control Scheduling Supplier Deliveries Cell Design Scheduling Material Handlers A Toolbox for HMLV Manufacturers “4H” LEADERSHIP • Walks the Gemba • Knowledgeable • Beyond TLSS • Competitive • Respects Employees • Efficient Fire Fighters (Risk Managers) • Change Managers • Invested in Talent and Technology ENGAGED WORKFORCE • Lean Thinkers • “Factory of One” Problem Solvers • Empowered • Multi-skilled • Team-oriented • IT Savvy • Collaborative CURRENT STATE FUTURE STATE MORE…. LEARNING ENTERPRISE INDUSTRIAL ENGINEERING • Work Measurements • Facility Layout • Ergonomics • Scheduling • Variety Control • Value Analysis/Value Engineering • DFMA • Flexible Mfg. Cells • Product/Process Standardization • Product Mix Rationalization • etc. • Cafeteria Chats • E-newsletter • Wikis • Kaizens • Online Chat Groups • Idea Boards • Annual Conference • Resource Center - E-books - Case Studies - Videos - Online Apps - etc. COMPETING THROUGH INNOVATION • Value Network Mapping • M3 Facilities • Flexible Focus (GT) • Product Mix Segmentation • ERP+FCS+MES • IT-enabled JIT Communications • Virtual Cells and Distributed Teams • Water Striders • Real-time Order Tracking • PLM+CAPP • Agile Suppliers UNIVERSITY PARTNERSHIPS • Co-Curricular Projects • Co-ops • Internships • Faculty R&D • Executives on Loan • Factories as “Test Beds” Acknowledgements The PRO-FAST Program is enabled by the dedicated team of professionals representing the Defense Logistics Agency, Department of Defense and industry. These team mates are determined to ensure the Nation’s forging industry is positioned for the challenges of the 21st Century. Key team members include: R&D Enterprise Team (DLA J339), Logistics Research and Development Branch (DLA – DSCP), and the Forging Industry Association (FIA). Acknowledgements Project Champion: Craig Kaminski Project Engineer: Haydn Garrett Project Champion: John Wilbur Project Engineers: Thomas Slauta Project Champion: Joe Kracheck Project Engineer: John Lucas Project Champion: Kevin Shaw Project Engineer: Greg Muniak Project Champion: Dick Johnston Project Engineer: Todd Sheppard Jon Tirpak Russell Beard Vicky McKenzie Project Champion: Andrew Ulven Project Engineer: Jim Huiras Dan Gearing W W E B E R M E T A L S , IN C . A L UM IN UM AN D T IT AN IU M F OR G ING S W Project Champion: Thomas Stys Project Engineer: Jorge Alvarez PFAST Development Team Dr. Rajiv Ramnath Dr. Rajiv Shivpuri Questions?