Introduction To Just In Time (JIT) Pg 0 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Group Exercise Description Based

Introduction To Just In Time (JIT) Pg 1

Copyright © 2001-2004Six Sigma Academy International LLCAll Rights Reserved

Group Exercise Description

• Based on your previous work, you’ve been awarded a contract by the Left Dogleg Bank of America (LDBA) to facilitate a lean event on the Credit Card process

• The current daily demand is 25 and there are 15 minutes in a day. • The Credit Card company is looking for help in increasing productivity

and reducing variation • It’s critical that standard work be created to they can proliferate the

model throughout all locations • They’ve asked that you focus on the 4 operators that complete

the forms- Data Entry for Credit Card Application - Green- Background Credit Checks - Blue- Set the Customer up in the System - Red- Issue the Card - Yellow



Group Exercise Instructions

This is the standard model we’ll follow for the event

• Calculate Takt Time

• Time study credit card operations

• Create Percent load

• Balance work to Takt

• Create Standard work layout

• Define Standard WIP

• Create Standard work combination for operators

• Complete each tool and be prepared to discuss your proposal with the class along with expected productivity results



Takt Time Calculation

• Takt Time = Available time

Demand

• Available time = 15 min

- 15 min * 60 sec = 900 sec

• Demand = 25 pc

• Takt Time = 900 sec = 36sec/pc

25pc



Time Observation Form

• Each team should have a Time Observation form for each operator

• Remember – Keep the watch running (this insures we capture normal variation)

• Double check their math – Each dot should take around 4 – 5 sec each(Ex. 2 Red dot Cycle Time should be 8sec)

• We want lowest repeatable time for each element

• Encourage note taking when using this tool – This normally reveals additional opportunities to eliminate waste. (Use Time Observation Form.xls)

Process for Observation: Date & Time:

Observer:

Applying Red Dots Team

Analysis #:

Item No.

Component Task 1 2 3 4 5 6 7 8 9 10Component Task Time

2 10 181 Pick up dot sheet 2 2 2 2

3 11 192 Remove dot 1 1 1 1

5 13 213 Apply Dot 2 2 2 2

6 14 224 Remove dot 1 1 1 1

8 16 245 Apply Dot 2 2 2 2

Points Observed

TIME OBSERVATIONFORM



Before Percent Loading Chart

First sum up total operator Cycle Time to complete one form

16 sec + 24 sec + 8 sec + 16 sec = 64 sec

Then divide the total operator cycle time by Takt time

64 sec / 36 sec = 1.8 Operators

The necessary theoretical staffing for this process is 1.8 Operators

Date:

Prepared by:Process Name:

Part Number:

CYCLE

TIME(sec)

OPERATOR

Before Project Takt time

=SUM OF Cycle time Operators NeededOperators NeededOperators NeededOperators Needed

48

40

32

24

16

81 2 3 4

T/T=36 Sec



After Percent Loading Chart

Prepared by:Date:

Process Name:Part Number:

OPERATOR

CYCLE

TIME(sec)

Takt time= Operators Needed

After ProjectAfter Project

SUM OF Cycle time

48

40

32

24

16

81 2

T/T=36 Sec

To balance the operations to TaktCombine Operations 1 and 4 = 32 secCombine Operations 2 and 3 = 32 sec2 Operators

50% productivity improvement



/ /

Standard Work in ProcessQuality Check

Operator NumberNet TimeTAKT Time

# of Pieces of Std WIP

Safety Precaution

Process Name Model Number Model Name

Scope of Operations

From

To

Standard Work Layout SheetDepartment

HeadDepartment Supervisor

Date Prepared or Revised

Identify each machine & significant work area in scale (1ft per Square)Draw a circle with a number in it for each standard sequence of stepsShow a path of operatorShow path of work in ProcessShow how many work units are in process (WIP)

Standard Work Layout Sheet

Oper. 2

Oper. 1

Oper. 3

Oper. 4

1

2

Standard WIP = 3pc

Takt Time = 36 Sec



Date Prepared

Volume Per Shift Pieces

Dept. Takt Time

Operation Name Man Auto Walk 4 8 12 16 20 24 28 32 36 40

1 Pick up Red dot sheet 2

2 Remove dot 1

3 Apply Dot 2

4 Remove dot 1

5 Apply Dot 2

6 Walk to Blue 2

7 Pick up Blue dot sheet 2

8 Remove dot 1

9 Apply Dot 2

10 Remove dot 1

11 Apply Dot 2

12 Remove dot 1

13 Apply Dot 2

14 Remove dot 1

15 Apply Dot 2

16 Remove dot 1

17 Apply Dot 2

18 Remove dot 1

19 Apply Dot 2

20 Walk to Red 2

TimeStep No.

Operation Time (In Seconds)

Standard Work Combination Sheet

ManualAutomaticWalking

Model No.and Name WorkSequence

Standard Work Combination Sheet

This is a Standard Work Combination for Operator 2Performs operations 2 - Blue and 3 – Red under Takt Time



Key Learning Points

• Takt Time- What happens to Takt when demand

• Goes up? Takt time is smaller (less time to complete product)• Goes down? Takt time is bigger (more time to complete product)

- What happens to staffing needs when Takt• Goes Up? Staffing needs increase• Goes Down? Staffing needs decrease

- We should look at Takt monthly or even more frequent depending on demand patterns

• Time observations- Break down to small elements- Copious notes – May observe waste during timing - Multiple runs must be timed to capture variation



Exercise Take-aways

• Percent Load Chart- Helps us see graphically where waste (wait time, overproduction)

is occurring- Theoretical Staffing is an approximation based on how possible it is to

split up and combine operations for balancing purposes• Standard Work Layout

- This example shows how a “U” shaped layout enabled us to combine operations 1 and 4 to balance work to Takt

- Can also be used a visual training tool• Standard Work Combination Sheet

- This where we capture the best work sequence- It is a visual description of how the operator work sequence flows- Also a great tool for training- Managers can use to audit processes and monitor variation

Documents

Introduction To Just In Time (JIT) Pg 0 Copyright © 2001-2004 Six Sigma Academy International LLC All Rights Reserved Group Exercise Description Based