MGS8020 Improve.ppt/Apr 9, 2015/Page 1 Georgia State University - Confidential MGS 8020 Business Intelligence Improve Apr 9, 2015

MGS8020 Improve.ppt/Apr 9, 2015/Page 1Georgia State University - Confidential

MGS 8020

Business Intelligence

Improve

Apr 9, 2015


Improve

Measure

Control

Analyze

Improve

Define

• Develop Potential Solutions – Identify potential solutions

through data analysis, brainstorming, benchmarking

• Create Future State– Develop and implement future

state process map and/or innovative solutions for the project

• Evaluate and Mitigate Risk– Analyze the impact of the

solution and error proof the process


Agenda

1. Kaizen Events

2. Capacity Planning

3. Defects vs. Mistakes


Lean Improve Activities

• Plan for and conduct a week long Kaizen event• Learn by doing, and doing it again

– Repeat Kaizen’s for key processes

The Lean Transformation

Fight FiresReact

Improve Processes

time

“Each new improvement reveals new problems!”Freddy Ballé


Kaizen Events

• The “Improve” process for Lean, where obvious waste has been identified

• A team-based, 3-5 day event with no down time

• Cross-functional teams meet full-time (100% of their time!) to solve a specific problem with pre-specified scope, metrics and goals

• Results presented to management at the end of the week, with project completion in 30 days

• Assumption is made that the team will have all the support and resources needed from management


Kaizen Events

• Meet within 100 feet and “walk” the process to identify opportunities that are not working right and do not require detailed data to justify change

• Count the number of steps within and between tasks; estimate task and handoff times; add improvement opportunities to Value Stream Map

• Share “peak” experiences (“Appreciative Inquiry”)

• Develop hypothesis and test immediately to see if it works

• Make quick and not so elegant changes

• Expect the unexpected!


Kaizen Event Team

• The team should include the following:

– 6-8 people– People who work in the process and will have to live with the changes and

at least one supervisor from this area– Representatives from upstream and downstream processes– Support personnel (IT, HR, etc.)– One neutral observer– Plus a neutral facilitator


Kaizen Event - Day 1

• Travel - am

• Lean Classroom Training - pm– All participants required to attend half-day Lean training (Intro, waste,

VSM, takt time, etc.)– Review plan for the week– Clarify charter and scope; special needs; available data– Clarify roles/form sub-teams– Distribute materials/post white paper on walls



• Current State Mapping - am– Sub-teams create current process map using large yellow post-its– Label with key data; identify missing data– Identify major opportunities for improvement– Adjust project scope if required

• Interview Employees/ Collect Data - pm – Sub-teams time a sample of existing sub-processes (with stop-watches)– Key personnel interviewed for knowledge of problems, suggestions for

improvement, and reasons why sample data collection may not be “normal”

– May be preceded by a tour of the entire process



Complete Current State - am– Report-outs of key learnings– Addition of collected data – Identify key opportunities– Experiments to test viability– Management progress review

Create Future State - pm– Perform experiments– brainstorm improvement

opportunities and potential benefits

– Create high level future state (“desired” state)

Current State Value Stream Map

3 min5 min6 min

Supplier

I110 units

RECEIVERECEIVE PRECUTPRECUT PRE SPICEPRE SPICE

ServiceService

Customer

MondayMonday

I92 units

I130 units

CT = 6 min

FPY=92%

CT=5 min

FPY=90%

CT=3 min

FPY= 94%

FINAL ASSEMBLYFINAL ASSEMBLYI

125 units

CT=5 min

FPY= 95%

138 min 143 min 101 min

Lead Time = 503 min

Process Time = 19 min

5 min

Throughput Time = 522 min

3.6% cy EfficienProcess

036.0522

19

Time Throughput Total

Time ProcessTotal cy EfficienProcess

Future State Value Stream Map

3 min6 min

RECEIVERECEIVE PRE SPICEPRE SPICE

ServiceService

Customer

I46 units

I130 units

CT = 6 min

FPY=92%

CT=3 min

FPY= 94%

FINAL ASSEMBLYFINAL ASSEMBLY

CT=5 min

FPY= 95%

121 min 143 min 50 min

110 units

Supplier

I

MondayMonday

Lead Time = 314 min

Process Time = 14 min

5 min Throughput Time = 328 min

4.2% cy EfficienProcess

042.0328

14

Time Throughput Total

Time ProcessTotal cy EfficienProcess



• Complete Future State Map - am– Include full value stream linked to customer– Return to plant to test proposed final recommended changes– Fine tune improvements– Create high-level documentation of new standard procedures

• Create presentation - pm



• Practice Presentation - am• Noon - Lunch• Presentation to management• Debrief; Discuss obstacles to success• Next Steps/Responsibilities/Kaizen “Newspaper”• Create new standard procedures• Write report /Send to stakeholders• Celebrate!!!

# Action steps to achieve goal Responsibility Due Date Date Completed % Complete

Goal_________ Date__________Implementation Team______________



Agenda

1. Kaizen Events




Capacity Planning

• Capacity is the largest amount of output that can be produced in a specified amount of time.

• It is computed by taking the hourly production rate and multiplying by the

number of hours in the specified time period.

• Like cycle time, it is constrained by the slowest step in the process.

• In addition, it will also be constrained by the type of resource that limits the

output of the slowest step.

• It can also be increased by flexible plants, processes and workers.


Capacity Planning - Balance

Unbalanced Process: Capacity is limited by the slowest step (smallest output in time period!)

Balanced Process: The output of one stage is the exact input requirement for the next stage!

Stage 1 Stage 2 Stage 3Units per month 7,0007,000 7,000

Stage 1 Stage 2 Stage 38,000 7,000 6,000

Units per month


Capacity Planning - Example

• A company manufactures a toy automobile. The toy requires three steps: drilling, sanding and painting and final assembly. The company currently operates one 8-hour shift, 5 days per week.

• There are 7 drilling machines. Each drilling machine produces 20 units per hour, Sand and Paint produces 100 units/ hour, assembly produces 80 units per hour.

• What is the bottleneck activity, and what is the weekly capacity?


Process Capacity Calculation Example

Drill Sand &Paint Assemble

8-hour shift, 5 days per week

k units/wee3200 5day/week * hour/day8 *r units/hou80 Assemble

k units/wee4000day/week 5* hour/day8*r units/hou100 Capacity Paint &Sand

k units/wee5600day/week 5* hours/day8 *r units/hou20 *drills 7 Capacity Drill

units/week 6400 5day/week *hour/day 16 *units/hour 80 Assemble

units/week 4000day/week 5*hour/day 8*units/hour 100 Capacity Paint & Sand

units/week 5600day/week 5*hours/day 8 *units/hour 20 *drills 7 Capacity Drill

k units/wee6400 5day/week * hour/day16 *r units/hou80 Assemble

k units/wee6000day/week 5* hour/day8*r units/hou150 Capacity Paint &Sand

k units/wee5600day/week 5* hours/day8 *r units/hou20 *drills 7 Capacity Drill


Bottleneck


Bottlenecks

• The sales team strives to drive new business to the restaurant. Based on the dinning hall capacity, it can only have 100 customers per hour. The dinning hall becomes a bottleneck

• The restaurant struggles to enlarge the capacity of the dinning hall, by increasing the dinning area, adding more dinning tables, and increasing the table turnover rate. The capacity of dinning hall becomes 250 customers per hour.

• However, the kitchen can only book 200 meals per hour, so the kitchen becomes a new bottleneck.

Sales Capacity

250 customers per hour

Dinning Hall Capacity

100 customers per hourKitchen Capacity

200 meals per hour


Ways to Reduce Bottlenecks

• Identify possibilities to split or share tasks (workload balancing), use line balancing

• Determine possibilities to perform parallel work

• Consider cellular layout

• Reduce setup/ changeover time and/or requirements

• Improve employee productivity

• Increase work time through overtime

• Cross-train employees

• Redesign the process

• Use flexible facility layouts

• Reduce batch size/ approach single-piece flow

• Others?


Agenda

1. Kaizen Events




Defects vs. Mistakes

Defects and mistakes are not the same thing!– A Defect is the result of a mistake– A Mistake is the cause of defects

Mistakes are inevitable!– People are human and can not be expected to concentrate all the time on

the work in front of them.– People don’t always completely understand the instructions they are

given.– Machines are not always perfect.– Complexity factors such as number of parts or lack of commonality.

The goal of Mistake Proofing is to engineer the process so that mistakes can be prevented or immediately detected and corrected.


Mistake-Proofing (Poka-Yokes)

• Keeping a mistake from becoming a defect

– Prevention • Determine potential problems• Develop fault-proof designs• Create prevention plans

• A proactive approach– Detection

• Develop signaling system/identification

• Plan for quick response at operator level

• Do root cause analysis; use “5 Whys”

• Eliminate special causes


Technique Prediction Detection

WARNING

CONTROL

SHUTDOWN

Some cameras will not function whenthere isn’t enough light

Vendor delivery time quote exceedsspecs

Some dryers have a overheat shutdowndevice

Employee starts a fist fight - gets fired

Unleaded pumps have smaller fill hose

Product # entered by scanner

Scale system automatically enters data

Cars have warning system for seat belts

Receive warning that 2 days left beforereturn date

All apples pass by sizer to sort

Application will not accept out of rangedata

Smoke detectors provide warning

Application startup for day lists all latecars

Mistake-Proofing Examples


Types of Mistake Proofing Devices

Mistake Proofing devices fall into two major categories:

Prevention - the process is engineered so that it is impossible to make a mistake at all

• Example: 3.5 inch computer diskette

Detection - a device that signals the user when a mistake has been made, so that the user can quickly correct the problem.

• Example: Limit switch signals loading jam

Let’s hope those guys use prevention type mistake

proofing!

Documents

MGS8020 Improve.ppt/Apr 9, 2015/Page 1 Georgia State University - Confidential MGS 8020 Business Intelligence Improve Apr 9, 2015