Creating Continuous Flow An Action Guide for Managers, Engineers and Production Associates By Mike Rother and Rick Harris Foreword by Jim Womack, Dan Jones and John Shook Lean Enterprise Institute Cambridge, MA USA lean.org Version 1.0 June 2001« Lean Enterpri = nate © Copyright 2001 Lean Enterprise Institute, Inc. All rights reserved. Lean Enterprise Institute and the leaper image are registered trademarks of Lean Enterprise Institute, Inc. ISBN 978-0-9667843-3-2 Design by Off-Piste Design November 2011 Lean Enterprise Institute, Inc (One Cambridge Center Cambridge, MA, 02142 USA () 617-871-2900 « (f) 617-871-2989 « lean.orgThe Shop Floor is a Reflection of Management‘With gratitude to our editors Jim Womack and John Shook, Off-Piste Design, our friends at many manufacturing companies, and Dave Logozzo, who coined the apt phrase, “Eyes for Flow, Eyes for Waste.”Contents Foreword Introduction Part 1: Getting Started Part 2: What is the Work? Part 3: Machines, Material and Layout for Flow Part 4: Distributing the Work Part 5: Connecting to the Customer and Regulating the Flow Part 6: Implementing, Sustaining & Improving Conclusion About the Authors Appendices A: A Continuous Flow Refresher B: The Standardized Work Combination TableForeword ‘When we launched Learning to See (LTS) in the summer of 1998, as the first publication of the Lean. Enterprise Institute, we urged readers to identify their major product families and to draw maps showing the flow of information and products as it currently exists. We pointed out that mapping, can be done at many levels—from a single process within a manufacturing facility to the complete path from raw material to customer—and suggested that the best place to start is with the flow of information and product within che walls of a single plant. multipie plants r We then urged readers to envision a future state for each product family’s value stream in which information flows smoothly back from the customer and the product flows smoothly—indeed continuously—toward the customer. Finally, we suggested an implementation plan for achieving furure states quickly We have been delighted with the response to Leartting to See, which has now sold more than 200,000 copies in English and has been translated into multiple languages. However, we have also been struck by the difficulty many readers have had in actually achieving continuous flow within their facilities. AA sight we frequently encounter when touring plants is processing steps relocated from departments (‘process villages’) to product-family cells (as recommended in LTS), but with only intermittent and erratic flow through the cell. Output gyrates from hour to hour and small piles of inventory accumulate between each operation. When we see this pattern, we know immediately that half or more of the benefits of cellularization is being lost. In addition, if the cel is located upstream from the pacemaker process leading directly to the customer, none of the benefit may ever reach the customer due to stagnation and instability in downstceam activities. So how can you create truly continuous flow with the benefits reaching the customer and sustained over time? The methods are not mysterious. Indeed, Toyota and its affiliated companies perfected them years ago. However, we've found that to actually apply them most managers, engineers, and production associates need a friendly sensei (teacher) to walk them through a step-by-step process that focuses their vision and targets their actions. Creating Continuous FlowTo fill this need we decided to publish this sequel volume to Mike Rother and John Shook’s Learning to See. Init we move from the plant to the process level as Mike and Rick Harris take your hand and lead the way in introducing and sustaining continuous flow to the maximum extent possible, beginning with the pacemaker process. across companies You already know Mike from Learning to See, but Rick Harris may be a new name. After fifteen years at General Motors, starting on the shop floor in Anderson, Indiana, Rick got his lean education at Toyota where he was a manager in assembly at the Georgetown, Kentucky plant. Rick and Mike now continue their lean learning by working with companies on lean implementation, ‘Those of you who have already read Learning to See and accurately drawn your current and future state maps will find the help you need in the pages ahead to achieve truly continuous flow and its many benefits. Other readers—who are just encountering lean thinking or who are process improvement veterans and think they need only a few tips on improving their existing cells—will benefit from studying the first section of this workbook to correctly identify product families and pacemaker processes. These readers will then discover many shortcuts on the path to truly continuous flow in the remainder of this workbook. Bur a word of warning: Drawing maps and envisioning future states is invigorating and fun. After all, anyone can deaw an attractive future state on paper. In Creating Continuous Flow you will be tackling the real issues of implementation, and success is only possible through intense collaboration between managers, engineers, and production associates. I's hard work and you will make mistakes, But the benefits are enormous and all the knowledge you will need is summarized here. Given the nature of your challenge we are particularly anxious to hear about your successes and your difficulties and to connect you with the lean community at lean.org. We also need to hear your suggestions for improving Creating Continuous Flow at [email protected]. So please take the time to study this Action Guide carefully referring back to Learning to See as necessary. Then seize the ‘opportunity to implement and sustain continuous flow. And tell us about your experiences so we can share them with the entire lean network. Jim Womack, Dan Jones, and John Shook Cambridge, MA, USA; Ross-on-Wye, Hereford, UK; Ann Arbor, MI,USA Foreword,Introduction Continuous flow is the ultimate objective of lean production, and creating continuous flow has been the goal of countless kaizen projects. We work at a wide range of manufacturing facilities and see many commendable efforts to create flow. Unfortunately, we see very little of it actually achieved. For example, it seems that many of us have concentrated on making U-shaped process layouts instead of on the more important part: Creating and maintaining an efficient continuous flow. ‘Almost any grouping of machines that performs processing steps in a sequence is called a ‘cell’, but it is rare to find real continuous flow which is what actually makes a cell a cell Ideally, product would flow continuously all the way through your value streams, from raw material to the customer. But that is too much to tackle at first. You need a place ro focus. That place is the ‘pacemaker’ process or segment of the value stream, where products take their final form for your external customer, This is usually the most important segment of any value stream, since how the pacemaker operates affects both how well you serve your customer and what demand is like for your upstream processes. A steady production rhythm, level mix, and consistent continuous flow of material at the pacemaker process places regular and consistent demands on your value stream. Yet a closer look at many pacemaker processes shows erratic and intermittent flow of product, fluctuating inventory accumulations between steps, excessive batching, output varying from hour to hour, and poor use of human effort due to the anchoring of operators to individual machines, Performance has certainly been improved over the old process village layouts, where equipment was grouped by type of machine, but much better performance and much leaner value streams are possible. The objective of this book is to sharpen your eyesight and equip you with skills to achieve and maintain a truly efficient continuous flow of material. We'll concentrate on operator-based cells because this type of processing is so widespread and—in a world of geographically scattered cus- tomers and short product life cycles—it is often important to be able to design and manage simple, inexpensive, flexible and reliable operator-based processes. We'll use methods and thinking based on practices pioneered within Toyota and its affliated companies, which you can utilize nearly anywhere you would like to create a continuous flow. ‘Tools and techniques can be useful, but the most significant thing you and your team can gain from studying this workbook is a better ability to see and feel flow. As you apply the methods described here you should automatically start to focus less on layout and more on flow. Bur the ‘most important thing to do is to select one of your pacemaker processes and get started right away—today—because how much we learn depends on our action orientation and persistence in implementation. Don’t wait! Mike Rother and Rick Harris Ann Arbor, Michigan and Stamping Ground, Kentucky June 2001 Creating Continuous FlowContinuous Flow This book focuses on creating continuous flow in pacemaker processes. But the concept of continuous flow goes beyond just pacemaker processes, extending everywhere to any production process. Similarly, the tools described in this book can be used in a variety of applications. This list shows the applicability of this book for various types of processes. Type of Process Completely manual production XxX Operator driven cells and lines Xxx incorporating automated equipment Conveyorized production lines xXx Partially automated transfer lines xx (with operator work stations) Fully automated transfer lines (operators as line attendants) Highly multifunctional automated machines Definition of a Cell ‘A cell is an arrangement of people, machines, materials, and methods with the processing steps placed right next to each other in sequential order, through which parts are processed in a continuous flow (or in some cases in a consistent, small batch size that is maintained through the sequence of processing steps). The most well-known physical cell layout is a “U" shape, but many shapes are possible, Continuous flow processing is also possible in straight production lines. Many companies use the terms “cell” and “ine” interchange- ably, as we do in this book. Intorduetion ixTeam Involvement Please note that you will need a team effort to create continuous flow. Lean systems rely heavily on production associates, especially for daily continuous improvement efforts, but they also depend on the daily involvement of management and engineering to set up systems, show the way, respond to problems, and manage the processes. Your team efforts to develop continuous flow will involve several people in your organization, including: Value-Stream Manager (sce Learning to See}: Draws and keeps fine tuning the future-stare value-stream map, which shows the pacemaker process and where continuous flow is possible Area Manager: Leads the effort to create continuous flow and ensures daily that the flows are maintained and continuously improved. Industrial Engineers and Manufact and staffing levels of continuous flow cells using data they personally collect on the ing Engineers: Design the initial layouts facility floor. They assist closely with implementation and debugging. Engineers also design, specify, and build the small, simple machines that are necessary to support continuous flow. Production Team: The operators, team leader, and supervisor are essential for helping, make the flow work, maintaining it, and finding ways to improve it on a regular basis, Maintenance: De-bugs the new cell until it works as intended (with the Industrial and Manufacturing Engineers) and is then on a fast-response call for problems. Lean Specialists: Assist all of these people.Part 1: Getting Started Welcome to Apex Tube ‘Apex Tube Company is a typical discrete parts manufacturer that we will use to illustrate the process of creating continuous flow. Apex produces a variety of tubular products for automotive, truck, and heavy-equipment applications. Two years ago Apex responded to pressure from its customers for lower prices, higher quality, more frequent deliveries, and more rapid response to changing demand by taking a hard look at its manufacturing operations. For many years the company had organized its fabrication and assembly processes by department with each product visiting each department as necessary. The resulting maze of ke product movements was hard to manage and even harder to improve. Apex spaghe managers therefore took the first step recommended in Learning to See and conducted an analysis of their products to find product families that could be managed individually, ‘Apex managers drew up a product family matrix that grouped products by similar sequence of final processing (pacemaker) steps and machines (see below). Apex’s Product Family Matrix On ate UC Med 4 | pierce | race | sore | ait | aaltthy | etme | txt wwmee | X X truck § ack x truck A X X X wm | X 1X 1X 1X >< |><| >< |/>< >< \Psp<[><)P< X X X Part 1: Getting StartedThe light-truck product family made the greatest revenue contribution to Apex and was under the heaviest price pressure. Apex appointed a Value-Stream Manager for this product, family, who drew a current-state value-stream map. This product family is shipped to the State Street assembly plant in three variants: a short-hose assembly (S) for the short wheelbase truck, long-hose (L) for the long wheelbase model, and an alternative-fuel (ethanol) assembly (A) offered as an option on this vehicle. ae PRODUCTION CONTROL Weekly Schedules SS Le pane jd om/)\ ore sare for ss2o fon ‘sme [Ot wo — ot a [err =7 second [crt = 12 seconds [crt = 24 secon [crr= 22 seconde. a — an a Stee Pn 2s bays 1edays L_Zseconds _f L_t2seconds_[ L24seconds J L 22 seconds Creating Continuous FlowWith their batch and queue production system based on a process village layout, Apex managers were not too surprised to learn that actual processing time was less than 0.01% of lead time and that much of the floor area devoted to this product was cither for storing inventory or to provide access between process steps. In short, nothing flowed and it was very difficult for Apex to respond to changing customer requirements even with very large in-process inventories. State Street Assembly Daly Onder Bb0riy Bote Das : Tati Apex Truck Fuel Lines Current-State Map rm Daily Ship Daily \ Schedule ae -- = i = ot rane Staging 23an days Sane TT = zeedye Ta seconds 20 seconde 19 secondo Processing _ "Tne = 178 sec. Part 1: Getting Started‘Apex managers quickly decided to create a continuous flow cell for the five final fuel line processing steps. (Before doing this they made sure, of course, that enough machines were still available in the process villages to sustain production for the other products in the plant.) Shortly afterward they also developed supermarket pull systems between the new Michigan Stee! Co. it =T seconde it = 12 seconde 10 =1hour (C10 10 minutes 3days Bdays T seconds 12 seconds Creating Continuous Flowcell and the two upstream fabrication steps that would continue to operate in a batch mode shared across several product families. These pull systems replaced the schedules previously used to regulate these processes. Through hard work and by suspending traditional rules of thumb on how quickly change could happen, Apex was able to design and implement the future state shown here. at 1) Forecast State Street ‘Assembly Dally Order 1880/day Box= 80 pe Zahies Apex Truck Fuel Lines Future-State Map Daily Ship Schedule aeeenn4 Stagi G| |e L . lo oe A 7 Operators 20 seconds Production Lead Time = 1aavs 2days 2days 159 seconds Processing ~ 176 sec, Time Part 1: Getting StartedApex started its fuel line value stream improvement at the right place: the ‘pacemaker’ process. The pacemaker involves production steps that are dedicated to a particular family of products and responds to orders from external customers. A well run pacemaker sends smooth demand signals upstream to the pull loops of the remaining batch fabrication processes, which respond to requirements from internal customers. Apex managers and engineers made another good decision by minimizing their initial investment and keeping the cell simple. For example, they could have created a more extended continuous flow by incorporating an end-forming press into the fuel line cell. But such a press would have required substantial capital investment. (In the future Apex may decide to apply some of the cost savings from its improvements to purchase and add a press to the cell.) They decided to install a simple, inexpensive, flexible operator-based cell designed for State Street Assembly's needs. This is more likely to be highly reliable and well-suited to sending smooth signals up the value stream, ‘Apex managers chose a classic U-shaped layout for their new operator-based cell (as illustrated on page 7). In only a few days they were able to move machines and configure the new cell to achieve striking reductions at this process in lead time and floor space required, while dramatically increasing the number of pieces produced per production associate. o Apex’s Continuous Progress with Flow: Continuous Flow Production per Shift (actualtarget) Space (sq. feet) Assembly Lead Time (WIP x Takt) Number of Operators Productivity (pieces/associatefhr) Functions Effectively as L Lo Pacemaker Creating Continuous FlowA Closer Look—With Eyes for Flow Apex managers, engineers, and production associates were excited about their new fuel line cell. After all, they quickly increased productivity by 50% while halving space requirements and dramatically slashing lead times. Yet when you look at the Apex cell with “eyes for flow” you should actually be disappointed. A walk through the fuel line cell will show why. Apex’s fuel line cell current state material flow ‘Assembly I -———_* acconstos \ (stetrees, \*, “ube Bender \ Teeter ree fa (automatic) sto es, Hourly Production G sine esa Pee @ 7] 9 | 6 2] 2 | » EN 3| 7% | 20 ——packout 0 pelcontainer eee ee ‘Getahed goods) s| so | 7 6 | 90 | 6 alee le a | so | 96 690 | 622 Part 1: Getting Started‘The first step when we visit a facility is typically to go see the current situation with ‘our own eyes and ask, “What is the problem?” At Apex, the first thing we notice is the production output chart at the entrance/exit of the cell showing planned and actual production, Looking at the output figures we wonder, “Why is there so much variation, and why does total production fall short of planned production?” More specifically, “Why is the cell achieving only about 70% of planned output during some hours of the shift?” Is the problem incapable machines that make bad parts? Is it machines that won't run? Is a supplier shipping bad parts, or are parts missing? ‘And who reacts when these problems occur? Whatever the cause, the variation in output is clear evidence that cell performance can be greatly improved. We are even more certain of this when we note that in ewo hours out of eight the cell actually produced more than the plan, which is just as bad as being under the target. Four production associates were assigned to the cell the entire shift, so a change in staffing can’t explain the variations. Unless this was achieved by hurrying, unacceptably risking stress injuries and bad quality, there must be waste in the process. We begin to see a source of variation and waste when we closely examine the first two steps in the production sequence: the tube bender and the first assembly operation. ‘The first production associate has to leave her regular work area every 25 pieces, or about every 16 minutes if the cell is producing to takt time (as explained below in Question 2 on page 13). This requires three minutes and means that either the material flow stops or the tube bender and the first two assembly steps are all decoupled from ‘one another. This means no continuous flow. [As we continue to walk around we notice that there are various quantities of inventory between every operation and that the production associates are each anchored to their machine, which often means they have to wait while the machines cycle. Variable inventory buffers between workstations are an inefficient way to balance uneven workloads. When a buffer gets too full, the supplying operation often takes, an unofficial break—pethaps to get materials or do other out-of-cycle work—while the downstream station catches up. Operations are decoupled, allowing each to produce batches instead of one piece at a time. Creating Continuous FlowDecoupled operations, which we call ‘islands’, bake the waste of overproduction and the waste of waiting into a cell, causing them to be repeated many times every shift, day, week, month, and year. Tiny wastes often don’t seem significant to managers just visiting the process (and apparently are not visible to Apex managers), but think about them as they add up more than 600 times per shift! Decoupled operations also make it difficult to notice production problems as they happen. When a problem occurs the rest of the stations keep on working. By the end of a shift the unnoticed problems add up and the production volume falls short of the target. Pacemaker processes, in particular, need to be manageable. Problems or abnormalities need to be spotted as they occur and support personnel must respond to them quickly. Production associates cannot react to and fix significant production problems, find and eliminate the causes of those problems, and at the same time still achieve full production! Finally, as we complete our tour we note that the Apex cell is laid out in a very wide “U.” This defeats one of the main objectives of a U-shaped cell layout: Permitting flexible deployment of operators by moving work areas into close proximity. Both the first and last production associates are moving back and forth over considerable distances to handle materials. Flow stops every time they leave a station to backtrack Our conclusion, at the end of our walk through Apex’s cell, is that there is actually no continuous flow anywhere. Instead we see only erratic and intermittent flow—as indicated by the small piles of inventory between each machine and the fluctuating ouput from hour to hour. Indeed, this cell is really just a ‘module’ of adjacent machines and operators producing at best ‘fake flow’ that misleads the untrained eye. Sec Cer se Cees Coen Peers Bernie id ere to cre SR eee) Prune SE cued Cae uel Pennie Pore ved erred ee nec Cee cece) Reena Peter PRU cca ae eed Ree Pees Cone eee Cy performing one value- Pere econ as Pee CRU acedTargets for Apex’s Fuel Line Cell Original Current State State ees No No mae Production wordt | 2 |x (actual/target) 690 6% Space (sq. feet) 1150 580 Assombh leadtime | ttdays | 37mi WP x Tat) Number of Operators: 6 4 Productivity {pieces/associate/hr) 35 20 Function Ettectively as Pacemaker | NO No While Apex’s new cell performance is much better than the original process village layout, a careful effort to achieve true continuous flow through proper process design and operation can double labor productivity, halve the needed space, reduce lead time by a further 90%, and dramatically improve both quality and responsiveness to customer requirements. Realistic targets for this cell, which we will show you how to achieve in the pages ahead, are shown in the right hand column of the table above. We'll get started by posing the first of eleven questions you should go through as you strive to develop true continuous flow in your own cells and lines. The questions require careful work and attention by your entire team, but you will discover that the answers are invaluable once they are incorporated in your business. Creating Continuous FlowQuestion 1: Do You Have the Right End Items? Apex has already determined their product families and assigned three end items ro its fuel line cell. However, as you consider your own situation, you may have to think carefully about the right products to assign to your pacemaker process. Here are some guidelines we've found helpful. 1) Fh lity. Sometimes demand is high enough to allow you to dedicate individual products to their own cells or lines like this: Product A Product B “ 7 “ 7 However, if demand gyrates between products and you can keep changeover times short, you are often better off sharing products between mixed-model cells like this: Products AaB Products AaB ‘The total capacity is the same in both cases but the ability of each process to accommodate shifts in demand between the two products is much greater in the second case. The demand for one product within a family may vary, while the demand for a whole product family is often more stable. Part 1: Getting Started "2 2) Variation in Total Work Content. The total work content—that is the operator time required to process one piece from start to finish—should not vary by more than about 30% between the different end items processed in the cell, especially when a moving conveyor is used. When the work content varies too much it becomes difficult to maintain flow and productivity. In such cases you may want to split the cell or assign some rare or low-volume end items to other cells. (Some facilities even create a separate line or cell to handle low-volume end items, until product engineers can reduce the content differences between the items via design changes.) 3) Similarity of Processing Steps and Equipment. When the steps required to build different products within the cell vary too much (ie., when some products skip some processing steps) operators will have to “shift gears” every time they change to assembling a variant of the product. This reduces productivity and increases the chance of quality problems, Again, sometimes it is better to produce variants with markedly different processing steps in different cells. 4) Takt Time (Production Pace). Take time is the rate at which customers require finished units. It is determined by dividing the total available production time per shift by the customer demand rate per shift (see the equation at right). As a general guideline, when takt time for a cell falls below ten seconds the operators’ jobs may become highly repetitive and stressful. When high demand calls for very short takt times you should consider using multiple footprints of the cell, possibly side-by-side, instead of a single high-speed cell. This is particularly appropriate if the capital requirements of additional cells can be kept low through utilization of simple equipment. Conversely, when take time slows to more than about 120 seconds, the number of work elements sometimes gets so high that work motions can be difficult to standardize. In such cases consider adding additional but similar end items to the cell to bring down the takt time. Of course, with some products it will simply be impossible to set takt times below 120 seconds because volume requirements are inherently low, even when several different end items are run through the same cell or line. (With long takt times it can get difficult to have all parts at the line for the operators for the different product variations. Sometimes you have to increase the parts delivery frequency or deliver certain parts in the assembly sequence.) 5) Customer Location. When customers for a product are widely dispersed geographically, it may make sense to split up the work into multiple lines, each located near a different customer. This makes sense particularly when shipping costs and duties for finished units are high, when there are potential exchange-rate losses, when lead times for components are ong, or when local infrastructure (supervision, buildings, etc.) is available at reasonable cost. Creating Continuous FlowQuestion 2: What is the Takt Time? Having decided what products to produce in the pacemaker, the next task for Apex managers was to determine the takt time. ("Takt’ is a German word for a pace or beat, often likened to a conductor's baton.) Take time is a reference number that is used to help match the rate of production in a pacemaker process to the rate of sales. takt time Used to help synchronize pace of production with the pace of sales your available work time px *F takt time = Lo] customer demand per shit 27,600 seconds example: ——————._ = 40 seconds 690 pieces this means: The customer is buying this product at a rate of one every 40 seconds. Sales are usually calculated on a daily or weekly basis but most pacemaker processes are actually up and running only some fraction of each day or week. Since the point of takt time is to pace actual production, the most sensible thing to do is to divide the number of products demanded daily or weekly into the number of shifts operated in that time period to determine demand per production shift. For example, the customer demand for Apex’s light truck fuel lines is currently 6900 units per week and Apex operates its fuel line cell ten equal shifts per week. Thus the demand per shift is 690 units. Once demand per shift is known the final step in the calculation of takt time is to divide this number into the ‘effective working time’ per shift. This is start-o-stop shift time minus any scheduled operator breaks, meetings, cleanups, etc. Because takt time must represent the actual customer demand rate do not subtract time for unplanned machine downtime, changeovers, or other internal problems. Part 1: Getting Started 131" Apex operates two 8-hour shifts Monday through Friday, 6:00 AM to 2:30-PM, and 3:30 PM to Midnight. There are two 10-minute breaks each shift but no scheduled downtime for maintenance. This means Apex has 27,600 seconds of effective working time in each shift. 480 min, (8 hours) - 20 min. of breaks = 460 min. x 60 sec./min. = 27,600 seconds By dividing 690 units into 27,600 available seconds we determine the takt time: 40 seconds. 27,600 seconds 40 seconds per unit 690 units This is the rate of customer demand, the all important ‘beat’ of the market. Notice that takt time is expressed in ‘seconds-per-unit’ because it is easier for everyone to understand and use than decimals of minutes. Similarly, we use ‘seconds-per-unit’ rather than ‘pieces- per-hour’ to describe actual production rates, or ‘cycle time’. Comparing takt time and ‘How frequently cycle time is the easiest way to answer the simple but critical question: does the customer need one piece?” and “How frequently do we actually make one piece at our pacemaker process?” ‘There is one additional point that may be very important in your own takt time calculations, the amount of variation in customer orders. In Apex’s case the 6900 unit per week demand was relatively easy to determine because Apex is supplying a massive automotive assembly plant whose own takt time does not change frequently. But what if long-term average demand and day-to-day actual demand are different? ‘We suggest that you check the range of daily customer demand variation by reviewing actual shipments (not orders) over the past twelve months. Your cell must be able to handle sustained demand. For occasional spikes in demand it is generally better to operate at a steady take time (based on average long-term demand) and either hold a buffer stock of finished goods or run some daily overtime to ensure your ability to serve the customer, Changing takt rime from day to day is inefficient, disrupts the work pace, and increases the potential for quality problems. Lastly, regarding future demand for new products, it can be difficult to make accurate forecasts far in advance. When future demand is uncertain it may be wiser to add capacity in steps, as increased demand actually materializes, rather than designing your pacemaker now for a peak demand that may not appear. Creating Continuous FlowCycle Time Cyele time is how frequently a finished unit actually comes off the end of your pacemaker cell, We often find processes that are operated at cycle times faster than take time, For example, if you are running your facility three full shifts (perhaps to achieve high machine utilization} you will probably always need cycle times slightly below takt time because there is never any time available to catch up if your equipment or materials system fails. And to some degree these sorts of problems will always occur in manufacturing! However, keep in mind that when you chronically cycle much faster than takt time you increase the chances of overproducing and may be using extra operators (see the diagram below.) Much worse, you conceal your production problems and reduce the incentive to find and eliminate their causes. It is important to maintain a certain tautness at the pacemaker to ensure that problems get noticed quickly and receive fast response by support staff. Cycling much faster than takt may require more people take time cycle time extra operator Note: The inevitability of problems in manufacturing is one of the reasons why many production facilities in the Toyota group of companies run their pacemaker processes for two shifts with a one to four hour gap between shifts. Then there is time to make up production losses with a little overtime at the end of each shift. Part 1: Getting Started 156 Setting the Pace |As you go through the calculations to determine your own pacemaker takt time we need to explain one final point: It is seldom the case that there is only one correct take time! 3 Remember that takt time is customer demand (which you can’t change) + divided into available production time (which you can change.) Specifically, you can adjust: 1) The available production time—the number or length of shifts. 2) The number of end items produced in a cell. 3) The number of cells making a particular end item. The pace of production is one of the most critical considerations for the design of your processes. Here you will often have some choices to make. For example: © A cell that has a takt time of 40 seconds over two shifts could also be run at 20-second takt in only one shift. In some cases itis easier and less costly to manage only one shift, particularly if running a second shift means extra support structure and paying night premiums. An added bonus is that the waste of waiting time is easier to see and eliminate when take time is shorter. © The size, weight, and complexity of a product can influence what is a reasonable cycle time and the number of motions for each operator. Producing a light, low-complexity product with only a few work elements per operator to a 10-second takt time may be fine. But when operators are working on larger, heavier or more complex products it can be better to work to a longer takt time and assign more work elements to each operator. # When new products are introduced, substantial savings in capital investment can be achieved by adding them to existing cells rather than building additional cells. This will decrease the take time for those cells. ‘As you launch your new cel itis often much better to utilize a temporary and separately held ‘safety stock’ of specific finished goods to protect your customer and to set your cycle time only slightly faster than takt time. The tension this produces forces you and your staff to address the causes of production interruptions. With experience you will gradually learn what's best for you. The key point for the moment is that you must know what the takt time is and how it was determined. Creating Continuous FlowPart 2: What is the Work? We've now examined and answered the first two questions confronting your team as you strive to create continuous flow. We've specified the products appropriate to the pacemaker and determined the takt time. Although you may be addressing some of these issues for the first time, Apex managers had in fact already answered them quite well. Yet the performance of the cell they created falls far short of what is possible. This therefore brings us to the more detailed aspects of cell design, which fewer managers have mastered: Zeroing in on the actual work elements, timing each one of them, and immediately eliminating obvious waste in the work. At this step in continuous flow design you should forget about physical layouts ‘or the number of operators and simply concentrate on the work content that needs to be done by people. Question 3: What Are the Work Elements for Making One Piece? When we look more closely at the fuel line assembly process we can see that each operator performs a series of discrete steps, or ‘work elements’, that are required to complete one cycle at each station. By collecting all the work clements at each workstation, we have the total operator work content of the cell, Understanding these work elements is a key ingredient for creating and maintaining continuous flow. A work element can be defined as “the smallest increment of work that could be moved to another person.” Thus “get one hose and place it in the fixture” isa work element while “get one hose” would not be. In the Process Study Form (see pages 18-19) we have written down the work elements for the Assembly I and Assembly II steps in the creation of a fuel line at Apex, Note: Always break work into elements. This helps you identify and eli waste that is otherwise buried within the total operator cycle. inate Part 2: What is the Work? aB Process Steps Process Study Process: S,LA Fuel Lines Operator Work Element Observed Assembly | Get bent tube & press into fixture Get connector, place & clamp Get hose & place to fixture Start cycle Unclamp & remove Attach convolute Assembly Il Get tube & place to fixture Get hose & RH ferrule, assemble Place to fixture & clamp Get LH ferrule, assemble to hose Place to fixture & clamp Get valve & place to fixture Start cycle Creating Continuous Flow Unclamp & removeObserver: Date/Time: Mary Smith Feb.10,2000 3PM Machine gimes Rosas Cycle Time Notes Operator has to hammer to fit Operator stacks own hoses (parts) Parts far away; Lots of walking Quality check needed? Part 2: What is the Work? 1920 You can only complete a process study form by carefully and repeatedly observing actual work. Do not rely on file data. As you observe the work you will probably find that operators perform it in a slightly different way from cycle to cycle. You will need to think abour the best way to do the job and try to record the elements as done this way. Use the “notes” area of the form to jot down problems, questions, and ideas. It is best to use a pencil for recording work elements, We find that we always have to correct, the list several times before we are satisfied that we have understood and captured the process. Then when you think you've got it right, review the list with the operators who will show you what you've missed, Then re-write the list again! ‘Shop Floor Courtesy Carefully observing a process means that you will be spending time at the process you are trying to improve. You will be a guest in the “office” of the people who ‘work there, Please use the same courtesy you would when entering anyone's office: - Introduce yourself - Explain what you are doing = Don't take notes in front of production associates without showing them what you have written ~ Say “thank you" It may be best to do this through the team leader or supervisor so you don’t interrupt the operators and affect their safety, quality, and productivity. Always keep in mind that you are not watching people or evaluating their performance. You are watch- ing the process or how the product is made. You are figuring out what are the steps and then the times required to make the product. Although we say these things when we gather observations on the shop floor, we know it takes time for this sort of thinking to sink into the culture of a company. When people are observed while they are working itis 2 natural reaction to think that they are being critiqued. And sometimes we tend to blame people for problems rather than working to understand the details of a process. ‘Always remember that the question is not, "How is that person doing?”, but rather, “What is the work?” This is the objective question that people should focus on— out on the shop floor—in a non-judgmental way. Creating Continuous FlowPaper Kaizen [As you observe and record the work elements there is something else you should begin to see: Waste! Operators walking considerable distances to get parts or waiting while machines cycle. Operators leaving their work area to perform out-of-cycle tasks. None of these actions adds value from the standpoint of the customer. All disrupt the flow and all are waste. Here is an important step in completing your process study form: Do not include any obvious wastes as work elements! They are not part of the work thar needs to be done and an objective of the design process is to eliminate them. We call this approach of immediately leaving out wasteful steps ‘paper kaizen’ because you are eliminating some waste on paper before the process is put in place. Of course, many improvements, like fine tuning parts presentation, will have to be done when the new cell is set-up and running. But there is usually a lot of waste you can eliminate in the paper kaizen stage. Here are some paper kaizen guidelines: 1. Do not include any walking as a work element. Because the actual amount of walking in your new process design is unknown and will be minimized, you should ignore it at this point. 2. Do not include out-of-cycle work for operators as work elements. This is a guideline you should never forget! Out-of-cycle work—like the first operator in the Apex cell stopping to feed the tube bender every 25 pieces—destroys continuous flow and makes it impossible to maintain efficient and consistent production to takt time. Other examples include periodically getting bins of parts, making a quality check, or moving a container of finished parts. ‘These tasks may need doing but should be given to support-staff, like team leaders and material handlers, who work outside of the takt-based continuous flow. If you are giving out-of-cycle work to operators as a sort of break, then schedule an official break or practice job rotation instead of burying such flow-killing waste in the work. Some out-of-cycle tasks can be converted to in-cycle tasks. For example, with only minor changes the tube bender in Apex’s cell can be loaded with a single work piece each time the operator cycles through his or her work elements. This allows continuous flow and is easily achieved because the tube bender already has automation that can be adapted to process and eject finished pieces. Part 2: What is the Work? a3. Do not include operators waiting for machines to cycle as a work element. Waiting for a machine to cycle is pure waste and must be eliminated. Always separate machine work from people’s work. It is OK to have machines finish cycling and sit idle until the operator returns on the next take cycle, but an operator should never wait for a machine. You should develop your cells in a way that allows operators to load a machine, start it, and move on to the next workstation while the machine cycles 4, Do not include time for removing finished parts from machines wherever you believe automatic eject could reasonably be introduced. When an operator returns to a machine on the next take cycle, he or she should ideally find an open and empty fixture (an ‘empty nest’) into which the next part to be processed can be loaded. Stopping to remove parts before another part can be loaded adds extra handling and waste. Try to configure cells and equipment to avoid this waste. Work Elements for the Apex Cell Using the guidelines for paper kaizen, let’s take another look at Apex’s fuel line cell (see page 23). We've listed the fuel line work elements beneath the cell layout. Notice that the current operator activities that paper kaizen eliminated are shown crossed out. Creating Continuous FlowApex’s fuel line cell work elements AN Tube Bender (automatic) [| ““seatme +(e | Work Elements | Time | Work Elements | Time Before Kazan Get bent tube, pace Load auto feeder Gootsiapee Get comector pace dclamp cycle Get hose pace Asroepct Start eye plete ee After Kaien ‘Attach comolite Get 58 tube& place to beer a Gye Auto eject ‘Ascembiy Got cube pace Get: tation hove Sight fore, asserbi forse Pace to future & comp Getafe ferrule’ sasserbe tohose Pace Belang Get vahe & place rohesure starseycle ete wae) Uncamp &romove Aside Get assembiy& place Rese to Pace & clamp Lise Starteycle st N |eactonaticy BS roan (toh goods) Gov asserby& place to Mature Remove hose cap fare anche tome rere Pulconelte one ach ap Inopect Pace to shipping Part 2: What is the Work? 224 Question 4: What Is the Actual Time Required for Each Work Element? With all of the waiting on machines and manual removal of parts characterizing ‘Apex’s current situation left out, we are now ready to time the work elements that are still necessary for making the fuel lines, To collect accurate times for each work element you and your team need to go to the workplace and use stop watches. Avoid the tempration to use standard time data or time-and-motion tables because they do not capture the current reality of the shop floor. Likewise, avoid reliance on time-study data on file in the engineering office. Collecting the information yourself on site will help you understand the real situation and see waste that will otherwise remain hidden. Note: It is OK to begin with times from time-and-motion tables or data from past time studies when you are designing a completely new process and observing actual elements is not possible. However, as soon as the new process is operational you need to gather the real data as described here. Be sure to time each work element separately, not the total time required by an operator to perform a sequence of work elements. This is because the total time for a sequence will include wasted time—in particular waiting—between work elements that should not be counted as work. (However, if several work elements in succession are only cone second long you may find it impractical to measure each one. It is OK to group such very short elements.) Once you have timed the individual elements then time the operator's complete work cycle from start to finish. This time will almost invariably be higher than the sum of the work elements. The difference is the wasted waiting time between the elements. You will need to time every work element several times to get meaningful data. Indeed, if you are unfamiliar with this task we suggest that you time each element ten times. This is a lot of work, but practice is the only way to become proficient. As you do this be prepared for the reality that timing is labor intensive and time consuming, even if you are highly experienced. Creating Continuous FlowSometimes as you record the time for one element, the operator will already be on to the next element before you can reset your stopwatch. So you will have to wait for another cycle to time that element. Similarly, if a work element is interrupted while you are timing you must discard that time and wait for the next cycle. Just remember that and timing there is no substitute for patience because the work elemet data are the bedrock for everything else. You should time an experienced operator who is fully qualified to perform the job, but pick a typical operator if possible, not the fastest or slowest. Then, after you have timed many cycles of each work element, select the lowest consistently repeatable time for each element. Do not use the average time since the lowest repeatable time is more indicative of what is realistically possible. Finally, and critically important, don’t forget shop floor courtesy. Make clear to everyone that you are timing, the work, not the operator. ‘As you record the times for each work element on the process study form be careful to always separate operator work time from machine cycle time. For example, if an operator loads a machine for five seconds, takes one second to start the machine, and then the machine cycles for 10 seconds, the operator work time will equal six seconds, not 16 seconds. While you are timing operator work elements go ahead and time the machine cycles as well and record them separately on the process study form (as shown on pages 26-27). Note: ‘Some experienced people we have worked with don’t use a stopwatch! Instead they count operator “motions,” valuing them at 0.6 second each. Perhaps you will fee! comfortable doing this yourself some day. However, we suggest you start with the method described above. Timing Tips Pees ee es Bence PRU eee ncaa CCR Cee ec Oe Rees Preece Peat Pee Peay ONC eRe Suet Bouin’ eg each element. reat floor courtesy.Creating Continuous Flow Process: Process Study SLA Fuel Lines Process Operator Steps Work Element Observed Assembly | Get bent tube & press into fixture 5/5|4 Get connector, place & clamp 3/4 Get hose & place to fixture 4|4 Start cycle Unclamp & remove 2j2l2 Attach convolute 6|7|5 Assembly Il Get tube & place to fixture 5|5 Get hose & RH ferrule, assemble 4/4 Place to fixture & clamp 44 Get LH ferrule, assemble to hose 3)4)4 Place to fixture & clamp 4 Get valve & place to fixture 4 Start cycle Unclamp & removeObserver: Times Mary Smith Repeatal Lowest 7 ble Machine Cycle Time| Date/Time: Feb. 10,2000 3PM 5 Operator has to hammer to fit 4 Operator stacks own hoses (parts) Parts far away; Lots of walking Quality check needed? Part 2: What is the Work? 27Work Element Times for the Apex Cell When we look at the list of all of Apex’s element times and machine cycle times an important finding jumps out. The operators at Assembly I, Assembly Il, the Crimper, and the Tester wait at their machines for a total of 21 seconds each time a fuel line is produced. 21 seconds may not seem like much wasted time on casual observation, but 21 seconds times 690 pieces per shift totals four hours of operator time spent watching machines cycle. No customer would think this creates value and it is completely avoidable because cach machine only needs to cycle once every 40 seconds (takt time). There is nothing gained by the operator staying at the machine and reloading it as soon as it has finished its cycle. Instead, the operator can perform other value-creating in-cycle work and return to the machine for reloading some time after it has finished cycling, Not In reviewing the times in the list, we have estimated the time required to load the tube bender in a one-piece-at-a-time fashion because the work is not currently done this way. All “get & place” times at the other machines were measured at five seconds, so we will use that figure for the tube bender now. This estimate will be replaced with real data once the new cell is in operation. Creating Continuous FlowApex’s fuel line cell work element times material flow AL™ la Te, © Gatetestea) (Gutomatie) [o«]— (automatic) BY LX neo ce os oy Work Elements | Time | Work Elements [Time | Work Elements Get bent Eube, Get tube place Get soserby & Get assorriy & piace Paco RH sda to piace tofrture Get wlonhose cure Get comecto ‘ght ferrule, Remove hose cap paced clamp Pace & clamp Jaattachhose to Lise facore hose & place Pace toficure& Start eyele Starceyce starqyle 1 J etamp plots pte eyelotoaish Get et feral & assemble those acon nemo Remon acim tcromave| Place & clamp Inspect enmps Re-attach cap After Kaizen ‘Actach comoluce Ger valve & place Pu conolute eee Asie tofature over eninps pace to bender oye vart cycle Aside Autosject Gye (wait) Unclamp & remo Aside Machine Cy 7 Machine yele = 7220 Machine Gye = 8 Part 2: What is the Work?30 The Results of Paper Kaizen Now that times are known for all of the work elements, let’s see the benefits of our paper kaizen. We can show this by stacking up the times of all the work clements as the operators have been performing them. Then we can draw a second stack on the right showing the total work content after waste was eliminated by: *# Introducing auto-eject at Assembly I, Assembly II, the Crimper, and the Tester. (This eliminates operator time to unclamp, remove, and set aside parts.) + Eliminating the waiting while machines cycle. + Converting the ou-of-cycle work of loading the bender with a batch of 25 pieces into in-cycle work with the operator loading one piece every cycle. You can easily see that the paper kaizen has removed substantial operator effort from the Apex fuel line assembly process. Total work content to make one piece has fallen by 30 seconds, from 118 to 88. This improvement is actually more dramatic because the redesigned work elements have added the step of loading the bender every cycle instead of every 25 cycles. (This conversion of work from out-of-cycle to in-cycle will make the assembly process much more predictable and easier to manage against takt time and production requirements.) Because the amount of value creating work is the same in both the left and right stacks, it follows that in the future operators can devote a greater percentage of their time to actually creating value without working any harder. Apex’s first Operator Balance Chart With the work elements and times in hand, Apex’s managers can now create a critically useful tool, the Operator Balance Chart. The OBC is a picture of the distribution of work among operators in relation to take time, based on real data that you personally observe and record. It is quantitative, simple, visual, and takes the guesswork out of designing and operating efficient operator-based cells, It enables engineers, managers, and production associates to work together using facts. ‘This tool has been very helpful for developing our own “eyes for flow”. Whenever people start working with an OBC we always note how effective the tool is in helping them to understand, create, manage, and improve continuous flow. Creating Continuous Flow125 120 115 110 105 100} | 80] 75} 70} 60) & 25 20) Paper kaizen for Apex fuel line work content current - TOTAL TIME= 118 seconds Place to container | Tnepect Remove of} eminate, Use auto eect. I} Cycle + eliminate, Operator moves ‘onas machine cycles, Remove cap & attach hose TOTAL TM [+ cet assembly & place to facture |— coca = * Eliminate. Pullconvolute over crimps Inspect crimps Tncaimp Brena et —* Eliminate, Use auto elec. Cycle 1 tininate Operator moves onasmactine cycles. Place & clamp LH side Geb assembly &place Rit side to Fcture Unclamp & remove + Elininate, Use auto eject. Cycle 1 sliminate, Operator moves | [— onasmachine eyeles. Get-valve & pace to fcture |— | | Face&eiamp | _ Gala teri & ascomble tonese Place to ficure & clamp | | cer rose sR fora, aesombie| L] — Gevtube&piace = | [re ee trina Attach conolute TRCRPETTO® et ——* Eliminate, Use auto eject. _| Cycle LL sinnate, Operator moves 7 ons machine cycles, Get hose & place Get connector, place & clamp See Geb bong bibe 8 place to ‘Assemtyi lorkpiece stays in machine, operator moves on Place to container 80) 75 70} Tnepect aa Remove cap & attach hose Place vo tester fixture Pull comolute over crimps Get fished pace Binapock cops be TEST Place & clamp LH side ‘Get frished piece. place Ri sida tb fature & Get valve & place to fixture | & Place & clamp Get LH ferrule & assemble to hose L— 8 Place to fixture & clamp Get hose 6 RH ferrule, aesemile 30) Place to Assembly fixture 25 20) 15| 10) Get finiohed piece =| &attachconvolute | Get hose & place =| Get connacten place andclamp | Get bent tube & place to ‘Rosembly! JoGet $9 cube & place to benderIn the OBC each horizontal line equals one second, with Apex’s fuel line takt time drawn in at the 40 second level. The work elements for each operator are stacked one on top of another (which is why the OBC is sometimes called a ‘stack chart’). The height of each box in the stack represents the time for that element. Note that operator load and unload times are included but not machine cycle times, because the OBC is summarizing human work and not machine work. Apex’s managers thought they understood cell design, but looking at the fuel line OBC should give everyone at Apex a shock! Each operator has considerably less work content then the 40-second takt, In two cases the operator work elements total less than half of takt time. We have already seen that material is not flowing through the cell and that output is highly unstable. Now it is apparent that Apex is also using too many operators to produce fuel lines. This adds cost to the product and threatens everyone's job, But please remember that we are analyzing the process and not operator performance. In fact, the waste we've found has its roots in the design and management of this proce Fortunately, the OBC can help Apex find a better way, as we will explain in the pages ahead. ‘Apex’s Operator Balance Chart—current situation Gerteishedpece | Oetrabedpceto eure zoli Bente Hs eeoarao Pace Bclamp Gechose apace neateeee simp =] Peatocmane 15 ee Py FE 1 Goapeager tee SaRSIGEEE TH] Parmap Sarah se = ea FT ace to fete ca acta 10 Z vos nee a TF cet bene abe pace 5 7 Ey CRERSREE TH ET ecnowamtena mente =] rartcampttnse FA Remawcap dation 5 Get SS tube & place Place te Assembly! F— Get finished pisos, oe t Tobender” ‘ease ASRITSEELE ire FF] Pacetoventertatue — So 8 © © 32 Creating Continuous FlowPart 3: Machines, Material and Layout for Flow Production processes of any type require the coordination of Man, Machines, Materials, and Method (commonly called “The Four Ms’). In the previous part of Creating Continuous Flow we talked about Man (or more accurately, People) in terms of work elements. Now that the work elements have been identified and timed, wwe can put these aside for a moment and turn our attention to arranging machines and workstations (Machines), and the materials management system and apparatus (Materials), in a way that permits continuous flow, Question 5: Can Your Equipment Meet Takt Time? Once Apex managers determined the products to make in their first cell (light truck fuel lines in three variants) and calculated the takt time (40 seconds}, they needed to ask whether the machines they were moving together to create a cell could actually meet the takt time. To do this each machine must be able to complete its cycle on each part within take time. In fact, as we will see in a moment, the ‘effective cycle time’ of each machine should be considerably less than takt time if continuous flow is to be achieved. ‘As Apex managers and engineers examined the five machines they had moved into the cell, they summarized their operations as follows: 41) Tube Bender. Stainless steel tubes from the previous process are bent to final shape in a tube bending machine, which cycles and ejects automatically as long as its feed hopper contains raw tubes. Because the hopper holds 25 pieces it would need to be refilled about every 16 minutes if the cell operates with a 40-second cycle time. 2) Assembly I, Ac this machine a connector and rubber hose are assembled to the tube. An operator loads and unloads this machine, which performs an insertion and crimping operation. 3) Assembly Il. At this machine a Teflon hose, ferrules (metal rings for connecting tubes to hoses), and a valve are assembled to the tube. An operator loads and unloads the machine, which automatically performs the insertion and crimping operations. ‘This machine is changed over to run the two different lengths of hose required by the product variants going through the cell. This involves the operator unpinning and sliding a clamp fixture to another position and repining it there. The short- hose/long-hose changeover takes about 20 seconds, or half of takt time, Part 3: Machines, Materials, Layout 334) Crimper. This machine crimps the left-hand and right-hand sides of the fuel line assembly. It is loaded and unloaded by an operator. 5) Pressure tester. The finished fuel line assembly is tested in an automated test fixture, which is loaded and unloaded by an operator. ‘Apex's managers then prepared the table below to summarize the cycle time characteristics, or effective cycle times of each machine. By ‘effective machine cycle time’ we mean: machine cycle time per piece + load and unload time (during which the machine cannot cycle) + changeover time divided by number of pieces between changeovers Effective cycle times of machines in Apex’s cell Effective Load, Start & c/o Time/ Machine Unioad Time Gatch Size Cycle. Bender 5Ssec ° 21 sec Assembly! | 46ec | 16sec o 20 sec Assembly | 7eec | 28sec ° 36 sec Crimper | Ssec | 12sec oO 17 sec Ssec | 12sec o 17 sec + Time is actually 0.67 second with @ minimum batch size of 30, based on packaging the customer requires as explained later. With a 20-second changeover time, the ‘changeovers on this machine consume just under one second per cycle when averaged over the smallest run. 34 Creating Continuous Flow[As the Apex team looked at these data they noted that the basic cycle time of each machine was well below takt time, the longest case being only 16 seconds. However, when they reviewed the effective machine cycle times they realized that the Assembly II machine raises a problem. If demand were to increase (meaning takt time fell) or if the machines were not completely capable (that is, able to make a good part on every cycle), ‘or completely available (that is, able to cycle every time they are instructed to) then Assembly II could easily become a bottleneck. Apex may need to consider improving the ‘operator load and unload times at this step. At the other machines there are no bottlenecks that will inhibit continuous flow. In fact, we would expect these machines to be idle for several seconds during each 40-second takt interval. In our experience, in a world where machines are not completely capable or available and demand does change, it is best to target effective cycle times for every machine in the cell at no more than 80% of the fastest (highest-volume) takt time. This ensures that operators will not have to wait for machines to finish cycling the next time they come around to go through the work elements. It also provides a bit of extra capacity to accommodate some demand increases without the need to add capital equipment or pay large amounts of overtime. What if some of your machines can’t meet the take time with a 20% margin? You have a number of options: * Kaizen the load, start, and unload process. * Eliminate waste in the machine cycle itself to reduce time. For example, shorten the travel distance and time of moving machine parts. * Split apart some of the tasks a bottleneck machine performs and use more than one machine to perform them. Use simpler or single-task machines running simultaneously at shorter cycle times. « Install two machines of the same type at the bottleneck point in the cell, and alternate between them on each cycle. * Create two cells instead of one. This may be particularly appropriate when there are advantages to locating separate pacemaker cells near different customers. Finally, if all else fails: ‘* Remove the bortleneck equipment from the cell and operate it decoupled from the pacemaker in a batch mode. Normally this will require establishing a supermarket pull system to regulate the production of the decoupled equipment. Part 3: Machines, Materials, Layout 3536 What About New Machinery?—Increments of Capacity In the Apex example, the company already has the machines it needs and wants to move ahead with its cell quickly to cut cost and improve responsiveness. However, you may be in a different situation. Some pieces of equipment are so anti-flow that replacing them now is the best option. Or, in the extreme case, you may have a cellular layout in mind for an entirely new product and process requiring all new machines. What are useful guidelines for designing the needed machines in order to achieve continuous flow? The first question is, “How should the materials be processed to achieve @ quality part?” If there is a clear choice in technologies for making the part, then the design of the new process and its equipment should begin there. ‘The next question is, “What is the desired process capacity?” The answer to this question is related to machine cycle times. The issue is whether you chose to design in the direction of one or a few complex ‘super machines’ that perform many activities with relatively long total cycle times, or you opt for a series of simple machines that each perform only one or a few of the processing steps with short cycle times. Because the cycle time of a multi- function machine will be longer, its capacity will be lower than a series of single-function machines that each cycle more quickly. Demand rates and product portfolios can change frequently, even in stable industries. For this reason it is often to your advantage to buy or build a number of simple machines that cycle quickly. These types of machines provide each cell with more flexibility to respond to change. (This advantage holds if you keep operator load times per machine from getting too long.) For example, if the cycle times of two multi-function machines in a process are near takt time when installed (as shown in the machine balance chart below) there is not much potential to handle additional demand or additional products without buying another machine. Capacity increases in this example must be made by additional machines in increments of 30 seconds of cycle time, because the longest machine cycle time in a process determines the overall increment in which capacity can be added. 1ed flexibility of multifunction machines takt time 40 seconds Ability to handle increased demand and more products machine eycle time 30 seconds Creating Continuous FlowIf this same process instead uses a series of simple machines that each cycle in 10 seconds (as shown below) the cell or line has the ability to handle demand increases and additional products without buying more equipment. And capacity can now be added in increments of only 10 seconds. Single-function machines also tend to be more reliable and less expensive than larger multi-function machines. Also, procurement lead time is shorter. In fact, you might be able to design and build such simple machines yourself! Greater fle» y of simple machines takt time seconds aid = Greater ability to handle increased demand and more products <— machine cycle time 10 seconds Maximize the Utilization of Machines or People? ‘Many of us have been taught that efficiency is achieved by maximizing machine utilization. As we analyze equipment capacity we need to reconsider this flawed maxim. The physical elements of production are people, machines, and material. There are tradeoffs between these elements when you design a process. If you try to maximize the utilization of one ‘element, the utilization of the other two tends to deciine. For example, if you try to maximize the utilization of machines—running them constantly and as fast as possible—you will need extra people to run machines all the time. You will also need extra in-process material between processes to cover problems and keep the machines running. Likewise, if you seek to maximize your utilization of material—having virtually no inventory on hand—you'll need extra people and equipment to handle demand fluctuations and breakdowns. Interestingly, trying to maximize the utilization of people is unique because humans are flexible. If the item that a machine makes is not yet needed by the next processing step, then it is OK for that machine to sit idle and not yet cycle. (This is particularly true with simple equipment.) But an operator can move to a different machine to make something that is needed now. The machine is not very flexible, the operator is. ‘This means that in pacemaker cells and lines you should design operator work content not to simply maximize equipment utilization, but for the best operator utilization. At times this may appear to underutilize the equipment, which sits idle for some time during each takt interval, but producing faster than takt is overproduction—the worst waste of all Part 3: Machines, Materials, Layout 3738. Question 6: How Much Automation? Let’s take a closer look at how automation can be used to make an efficient continuous flow. You can utilize automation to help you achieve an efficient and flexible continuous flow of material. But designed or used the wrong way, automation can also inhibit flow. To avoid this you must consider how the material flow and the operator flow will interact with one another. As a guide to thought, we often use a simple chart highlighting what we call ‘the great divide’ in automation (see below) To allow operators to move on and add value while a machine works you will need at least Level 2 Automation in your cell. This permits machines to automatically complete their cycle once they're started without the need for further human attention. With Level 2 ‘Automation operators can work in a sequence like this: Remove a finished workpiece from Machine 1 | Place a new workpiece in Machine 1 | Start Machine 1 (which then c} | Carry the finished workpiece to Machine 2 (the next processing step). | Repeat the sequence at Machine 2. Jes unattended). Levels of automation nC Cer 1/[ esl pod tad 2 e Auto 3 eC Auto Auto ec The Great Divide 4 ‘Auto Auto Auto e LEVEL 5 Auto Auto Auto Auto Creating Continuous FlowThis work progression allows operators to handle multiple processes within the takt time, as shown in the diagram below. While the machine cycles, the operator moves on to the next processing step. The operator never waits for the machine, ‘We think of it this way: When the operator waits at a machine while it cycles the operator is working for the machine, When the operator moves on to perform subsequent work elements while a machine cycles the machine is working for the operator. Sometimes we still see operators staying at machines to monitor them, Again, the operator is working for the machine, This is pure waste. In these cases engineers need to develop sensors that detect problems, alert someone, and if necessary even automatically stop the machine. Then people come to the machine only when they are really needed. The cost of simple sensors to detect problems is almost always far below the cost of keeping an operator at a machine. And human inspection is never 100% effective anyway. Multi-process handling instead of waiting il A " ai 2fis nal aT ett a Standard WIP re! (one piece) ee Part 3: Machines, Materials, LayoutCoes Ry eee Pre ey BO es PoE Und Cae) and started the machine ad erry CR uCeRu CCC Pei’ SRE manual task part way CC Crary eR ran Cea en Cr ear COR ced Having a machine cycle unattended while the operator moves the finished piece to the next machine means that one piece of ‘standard work-in-process’ inventory is left behind in the machine, Parts are being processed one piece at a time, but the one piece of ‘standard WIP" frees the operators from the machines. (During daily operation of the cell the supervisor or team leader will need to regularly ensure thar these pieces of standard WIP are in place or the efficient flow will break down.) Note: Proper machine guarding needs to be in place when machines are able to cycle without the operator’s hands remaining on the switch. Look for ways to configure safety devices so they do not interfere with the operator’s smooth motion, Level 2 Automation May Not Be Enough Level 2 Automation works well when parts can be unloaded and loaded with one hand. However, there is a problem when the parts being processed require both hands to unload and load. Then the operator has to work in this sequence: Set the new workpiece aside. 1 Remove the finished workpiece from the machine ! Set the finished workpiece aside, | Pick up the new workpiece. ! Place the new workpiece in the machine. | Start the machine, which then cycles unattended. | Pick up the finished workpiece. | Bring the finished piece to the next machine, and repeat these steps.[As you can see, waste occurs because the operator must double-handle both the finished workpiece and the new piece. This is the situation in Apex’s cell, where both hands are needed to handle the long fuel lines, and it is one of the reasons that Apex's operators cach stay at one machine, Instead of having operators handle each fuel line twice as they walk through Apex’s cell, it appears more efficient to have them stay in one position and simply remove a finished part, hang it onto a rack for the next operator, and then get and load a new part. In fact, the parts are still double-handled, but the waste is obscured because it is spread over two operators, Apex managers also felt that by keeping the operators at the machines the operators could reload the machines as soon as they are open again, which results in high machine utilization and feels efficient. But of course, this completely ignores takt time, causes waste, and destroys flow. Double-handling means that many pacemaker processes need Level 3 Automation to achieve an efficient continuous flow. Level 3 Automation means that the finished workpiece is automatically ejected from the machine at the end of the cycle. As a result, the machine presents an “empty nest’ each time the operator returns with a new part. A new part can be loaded without having to double-handle both parts. Because great precision is generally not required to eject a part, Level 3 Automation is usually quite inexpensive. A workpiece can often be ejected by utilizing energy from the final cyclical movements of the machine, for example via a part eject arm (or ‘kicker’) connected to a moving ram. (We urge you to avoid steadily blowing compressed air to eject parts. This creates a noisy workplace and high energy bills.) More Than Level 3 Automation May Be Too Much | ‘An interesting point in the table of automation levels is that when you go beyond Level 3 Automation t0 Level 4 or Level 5 Automation capital costs and technical complexity increase dramatically. Properly loading parts is easy for humans but can require delicate technologies to automate. Similarly, transferring parts automatically may require robots or transfer lines. This may seem attractive on paper, but the complexity often reduces process reliability to below 70%. In addition, what can you do with an expensive, highly automated line when customer demand changes? When demand falls off you are stuck with an underutilized piece of high-depreciation equipment. When demand rises above capacity you need to buy another expensive automated line. Part 3: Machines, Materials, Layout aIn our experience, Level 3 Automation achieves many of the benefits of full automation but without the expense, procurement lead time, maintenance requirements, downtime, and volume inflexibility. We call the decision to pursue Level 4 and 5 Automation ‘crossing the great divide’, In some cases you may need to do it, but you should look very hard at the alternatives first. Question 7: How can the physical process be laid out so one person can make one piece as efficiently as possible? Here is an elegant tactic for cell design. Arrange the machines, workstations, and material presentation devices as if only one operator makes the product from beginning to end, even if you will never run the cell this way. When you design a process so one person can move through it and efficiently perform all of the work elements, you automatically design a process that avoids isolated islands of activity, minimizes inventory accumulation between processes, eliminates excessive walking, removes obstacles in walking paths, and brings the people-driven, value-creating steps as close to one another as possible. ‘This is certain to be the most efficient layout, even though the correct number of operators has yet to be determined (and will vary anyway when takt time changes significantly). On. the following pages are two simple checklists for organizing machines and workstations so that operators can perform their work elements as efficiently as possible. Among these guidelines is that machines and workstations should be close together and that the inside width of a cell should be kept to about five feet if possible. With this in mind, many cells naturally end up in a narrow U-shape. The more workstations or machines in the cell, the longer the U. Of course, there are often product, machine, or part presentation issues that affect cell design and thus many different cell shapes are possible. Note: There is a school of thought that material should flow through cells in a right-to-left direction relative to the operator, because more people are right handed and it is more efficient and natural to work from right to left. However, many efficient processes flow to the left and many flow to the right. Simply evaluate on a case-by-case basis whether a particular direction makes more sense. Creating Continuous FlowGuidelines for Cell Layout Place machines and workstations close together to minimize walking distance. Remove obstacles from the efficient operator walking path. ‘Try to keep the inside width of a cell at around five feet to allow flexibility in reallocating work elements among team members. With a width of no more than five feet, team members can easily walk across the inside of the cell during their work cycle. Eliminate spaces and surfaces where work-in-process inventory can accumulate. Maintain consistent heights for work surfaces and points of use. Locate the leadoff and final processes near one another. This minimizes return walking for the next cycle and allows one operator to easily handle both the leadoff and final process. When this is possible it greatly aids line pacing. Avoid up-and-down and front-to-back transfers of the workpiece. If possible, keep the sides of the machines open to allow horizontal transfers on the shortest path between them. Use gravity to assist operators in placing parts and moving materials whenever possibl Install flexible utility drops from the ceiling to make layout adjustments easier. Keep hand tools as close as possible to the point of use and orient them in the direction that they are used by operators. Use dedicated hand tools instead of tools that requi and combine two or more tools wherever possible. continued —> Part 3: Machines, Materials, Layout 4ajelines for Cell Layout Absolutely ensure safety and good ergonomics. A lean process is designed to support the operator and value-added working. Poor ergonomics is undesirable from a human standpoint and contributes to waste. Keep manual, operator-based work steps close together to allow flexible work element distribution and value-added operator work. ‘Segregate Level 5 automation and continuous-cycle operations (like ovens) from manual operators or operator-based work flow, as shown in the diagram below. Note that an automated segment incorporated into a cell in this manner must be highly reliable. If reliability is poor and hard to improve, begin by placing the automated segment in a separate area and regulate its production with a pull loop. Incorporating automated segments into cells |< Automated segment Manual area (operators work here) material flow Creating Continuous FlowGuidelines for Machines Use small equipment dedicated to a single task rather than large, multi-task equipment. 1 Introduce auto-eject (Level 3 Automation) whenever operators must use both hands to handle the part. Install one-touch automation where possible. One-touch automation means that an operator can place a part in a machine, initiate the machine cycle, and move on. Avoid batching. Ideally, machines should be able to process one-piece-at-a-time in less than takt time. Incorporate sensors to signal abnormal conditions and even automatically stop machines if necessary, so operators don’t need to watch machines during their cycle. Design in maintainability. This means machine designs that are easily accessible for maintenance and repairs, and can be fixed quickly. At the pacemaker process, strive to devise machine changeovers between different end items that take less than one takt time cycle. Guidelines for Materials Management The essential companion to these guidelines for layout and machines are guidelines for material handling. As Apex’s team works on the physical design of the fuel line cell it also needs to take a look at its system for getting the required parts and materials to their ‘point of use’ in the cell. When you use the following materials management guidelines it will help your cell and line operators perform their work elements as efficiently as possible. Part 3: Machines, Materials, Layout 45Guidelines for Materials Management O Present parts as close as possible to the point of use, but not in the walk- ing path of the operator. Q._Present parts so operators can use both hands simultaneously. O._try to keep all part variations at the operators’ fingertips at all times to eliminate changeover time. + Use fail-safe storage mechanisms when different parts look almost the same to prevent the wrong parts being assembled. + When you cannot keep all part variations near the point of use because they are too bulky or numerous, increase the delivery frequency for those parts or sequence their delivery to match the end-item assembly mix running through the pacemaker. For example, deliver sequenced parts every ‘pitch’ of work. (Pitch is discussed under Question 10.) Do not have operators get or restock their own parts. With the possible exception of refilling screw pouches inside the workstation, use a material handler on a regularly scheduled, standardized route (typically every hour) to deliver parts and take away finished goods. Keep no more than two hours of materials at the point of use. If the material handler fails to deliver on schedule, the cell or line will soon stop, forcing managers to address erratic material flow. Do not put additional parts storage in or near the process because this makes the operation of the cell or line harder to understand and encourages operators to get their own parts. This can reintroduce the evil of out-of-cycle work. Utilize kanban to regulate parts replenishment. The material handler comes regularly but will only bring those parts that have actually been used as indicated by kanban. No kanban, no parts. Size parts containers for the convenience of the operators or as a multiple of finished-goods packout quantity, not for the convenience of the material handler or the supplying process. The operators are the ones creating the value. Everyone else is at best incidental work! continued —> Creating Continuous FlowGuidelines for Materials Management Q_ Do not interrupt operator work cycles to replenish parts. Parts should be replenished in small containers from outside the cell and wherever possible should slide to the point of use by gravity-feed racks or chutes. Design these so an empty container taken off the flow rack causes the next full container to slide into position. The operator then slides the empty container down a return chute to exit the cell or line. , boxes opened for operator Flow rack with return (one kanban on each box) material handler operator Overhead view of flow rack delivery rack machine Oo Flow racks can also Y flow over benches and through machines, not SS just between them. Part 3: Machines, Materials, Layout 47Applying the guidelines to the Apex cell ‘When we examine the current Apex cell through the lens of our guidelines, we see the following: * Too much walking distance from beginning to end. * The inside of the cell is too wide. © The leadoff and final operations are far apart, with the consequence that a single operator will have to walk a long way co get to the beginning of the next cycle. «There is ample space for work-in-process accumulation between every machine. © The tube bender needs modification to load one piece every cycle. * The “out” tray for the bender obstructs the operator walking path. Current Apex fuel line module layout 580 square feet, 56 pieces in process 29 feet AL™™ IA Tee feet AY K “ube Bender (coveted) Catomascy owe |/N ocr (ovtomstic) & A Bo peelemeaner “fetshed good) Before applying guid Creating Continuous FlowReorganizing the cell in accordance with the guidelines produces a very different configuration (as shown in the diagram below). This layout will be fine-tuned when deployed on the shop floor. However, we have now improved the physical layout to 4 point that we need to ask how to integrate the work elements and the operators in the newly configured cel. Example layout for nt one-operator, one-piece flow 252 square feet, 5 pieces in process 14 fe ‘Assy Il angled to keep cell inside _- a= width about 5 ft. parts & materials presented on eD ~~ flow racks from outside cell 1 pment! BE single piece of in-process stock left in'machine 08 operetor moves on feet e G = S| ef no obstructions in walking path _ ae no space for WIP accumulation eto [my wren ed See orci @ ese and end together co BS (Poked go) After applying guidelines Part 3: Machines, Materials, Layout 4950 Dealing with Batch-Oriented Equipment ‘Apex was able to create their cell layout because their existing pacemaker equipment was designed to process one piece at a time, but some of your ‘current pacemaker equipment may be configured to rapidly process batches instead of operating in a continuous flow. We call this sort of batch-oriented equipment ‘monuments’ and they often involve processes like painting, heat treating, and plating. In the future you may be able to replace your monuments with simpler, single-piece-flow equipment. But what can you do today? + You can separate a batch-oriented process from your continuous flow with a supermarket pull system or FIFO buffer. + Heating, cooling, curing, and similar processes can sometimes be kept within a continuous flow when they are moving-conveyor processes, as long as operators can drop off a single uncured piece and pick up a single cured piece once within each takt time. Walk distances should be minimized. + Sometimes you can ignore the batch capability of equipment and use it ina single-piece mode. However, the equipment's effective cycle time for processing only one piece must still fit under the takt time. + Sometimes, with a little creativity, a batch-oriented machine can be replaced by an inexpensive, single-piece processing method right away. For example, manual spray guns placed in-line can sometimes do the work of a batch- oriented, conveyorized paint line. Creating Continuous FlowPart 4: Distributing the Work With the physical process now rearranged so that work can be performed in the most efficient manner, itis time to bring the operators and the customer back into the cell design process. Question 8: How Many Operators Are Needed to Meet Takt Time? The total operator work time to make one fuel line after Apex’s paper kaizen is 88 seconds. If this were equal to or less than takt time, the cell could meet the customer's need with one operator. However, the customer currently requires one finished fuel line every 40 seconds, so more than one operator will be needed. ‘The appropriate number of operators should not be determined by estimate or by negoti- ation between the different members of the team. Instead you should begin the process of determining the operator need with this equation: Total Work Content (after paper kaizen) ones tl Onsen Takt Time | In the Apex example this works out as follows: 40-second takt ‘There being no such thing as two-tenths (0.2) of an operator, this means that three operators will be needed if Apex is to meet customer demand with no further improvement in operating, methods. While this is already one fewer operator than Apex is currently using, two-tenths is not far above two, which means using three operators would result in low productivity. ‘This cell can be run with two operators if the entire team is willing to set this as a goal. Part 4: Distributing the Work 5152 ‘The guideline/target table below provides a guideline to evaluate the initial ‘number of operators’ calculation. This table assumes that operator loading will be in the 90 to 95% range. That is, 90 to 95% of each takt interval will be filled with work and operators will not need to watch machines or wait for parts. The table also assumes that your cell or line will be introduced and managed as described in this book Note: If you intend to use a cycle time more than 10% below takt time be sure to make your first number-of-operators calculation based on takt time. We think you should have the potential productivity of your coll or line clearly in mind.Then you can redo the calculation using your planned cycle time as the denominator, instead of the takt time, keeping in mind the serious problems associated with cycling too much faster than takt time. We have found that in each facility or company the commitment to create continuous flow should be accompanied by a consensus on how fully jobs will be loaded against takt time, This discussion shouldn't reoccur every time a new cell is designed and it certainly should never become a game where management is always trying to increase loadings and production teams are trying to reduce them. Fortunately, the Operator Balance Chart makes the actual loading process quite precise so the whole team can discuss the issue with facts. Guidelines for determining the number of operators in a cell Remainder in| # of operators calculation (after paper kaizen) leline / Target Do not add an extra operator. Further reduce waste & incidental work. Do not add an extra operator yet. After two weeks of cell operation & kaizen, carefully evaluate if enough waste & incidental work can be taken out ‘Add an extra operator if necessary and keep reducing waste & incidental work to eventually eliminate the need for that operator in the cell. Creating Continuous FlowHow can Apex reach the 2-operator goal? By committing their whole team of managers, engineers, and production associates to a 2-4 week troubleshooting and debugging process at the cell. ‘When you start to run the cell with two operators you may only reach 65% of target production and be tempted to add another operator. This will be a critical moment of decision because if you do add a third operator now the pressure to kaizen out more waste is likely to disappear. Instead, we urge you to run the cell with two operators for extra time at the end of the shift or on the weekend to make the necessary output target while you continue to kaizen. In our experience, a team willing to commit to intense kaizen in pursuit of a target number of operators based on our guidelines can usually reach 80% of the required ouput within a week of startup and 90% within two weeks. The final 10% is the hard part and will require all elements of production and support to come together. However, as you reach this goal—and we absolutely know that you can—you will have created an operation thar can run for months at low cost with true continuous flow. Even more important, this will set a new standard for your entire organization. Operator Loading Options When you are in the upper range of our operator guideline (with an initially calculated need over 0.5 additional operator per cell) you will face a choice of how to distribute a less-than-full work content among the operators as you begin to operate your cell. ‘The traditional approach is called ‘balancing the line’ (see ‘Option A’ on page 54). The work content is divided evenly between the operators, perhaps from a desire to be fair. But traditional line balancing bakes the waste of waiting into the process by spreading it 088 all operators. The cycle time of each operator is indeed balanced, but each evenly operator is only partially loaded, This practice not only makes it harder to eliminate waste later but also creates the potential for overproduction. For lean producers this is just a bad as failing to meet demand. Part Distributing the Work 534, A Combination Tn many cells a combination of splitting the work and a circuit or reverse flow will make the most sense. For example, some operators will work at specific stations or combina- tion of stations, while one or more pairs of operators work in circuits or reverse flows in other parts of the cell. This can achieve many of the benefits of circuits in cells requiring more than two operators. In addition, when a pait of operators include both the leadoff and the final work elements in their circuits, it provides an excellent pacing mechanism for the whole cell. Combination work dstribtion a oe terut portion Goad 5, One-Operator-per-Station Some processes involve only manual work with no automated equipment. In this situation the number of workstations can be the same as the number of operators, or there can be ‘one operator on each side of a workstation. Each operator performs all of his or her work elements at the single workstation and then passes the work on to the next station. The assignment of work elements is easy, but it may be harder to evenly balance work and fully load the operators because of the limited ability to devise flexible work combi- nations. A moving conveyor to transfer the workpiece often a good idea for maintaining continuous flow with this type of work distribution, because without it there can be a tendency for regression to batching. One-operator-per-station distribution Empty station for volume |_material flow, increase Creating Continuous Flow6. The Ratchet In this arrangement the number of workstations is one greater than the number of operators. Each operator works at two workstations and moves back and forth between stations every takt increment. Except for the leadoff and final workstations, two operators will work in each station, one after the other. When operators move to the downstream workstation they carry the workpiece along. Moving upstream is done empty-handed. Thus the work ‘ratchets’ forward with each cycle of the operators. The work content for each operator must be divided between the two workstations such that each operator divides the takt time in the same ratio between the two stations. For example, if after 50% of the takt time one operator moves downstream to complete his or her cycle at the second workstation, all operators must move after 50% of the takt time. Because all operators move at the same time, the ratchet provides a strong pacing mecha- nism and is excellent for day-to-day kaizen because line imbalances are immediately visible. However, ratchers are only practical when work elements can be evenly divided within generally implies mostly load-and-start machines, takt time at every work station. T! short machine cycle times, and light machines that can be moved easily to even up the work elements. A good example is sewing complex articles in the garment industry. The ratchet Example: 4 operators and 5 workstations Workstation responsibility in the Ratchet Operator 1: workstations A +B Operator 3: workstations C + D Operator 2: workstations B + C Operator 4: workstations D +E Part 4: Distributing the Work 6Selecting a Work Distribution for Apex With these basic approaches in mind, we may now ask what the best work distribution will be for Apex. In looking at the situation it is apparent that a ratchet approach is not appropriate because it would be very hard to divide up the cycle time on each machine into, say, half of rake time. The one-operator-per-station distribution is not suited to this application because all of the machines are to some extent automated, permitting operators to move on and perform other work elements while the machines cycle. In addition, we no need for a note that this is a small cell with a target of two operators, so ther combination of splitting up the work and circuits or reverse flow. This leaves the first three choices on our list—split operations, a circuit, and reverse flow. We prefer the idea of the two operators moving all the way through the cell each takt interval, which makes it easier to maintain continuous flow, provides a pacing mechanism, and adds variety to the work. Because it will take a little time for Apex to design and install the auto-eject devices essential for an efficient circuit distribution in this case, we will begin with a reverse flow and move as quickly as possible to a circuit. Reverse flow does involve a little more work content due to the double-handling of parts, so there will be a need for a little overtime each shift. This should create pressure to eliminate more waste and introduce auto-eject as soon as possible. Creating Continuous FlowPart 5: Connecting to the Customer and Regulating the Flow ‘We have now integrated Man (People), Materials, Machines, and Methods to design a true, efficient continuous flow. But we still need to determine how to schedule the cell and how to react when there are changes in customer demand. Question 10: How Will You Schedule the Pacemaker? To this point we have been working on the flow of products through the cell and the flow of materials and operators to support the product flow. We now need to design a suitable information flow from the customer. It is not realistic to expect customer demand to be completely smooth. However, if wwe try to adjust the output of the cell to respond from hour to hour to every twitch in demand it will be very hard to sustain any type of flow. Costs will go up and quality will fall, Similaely, itis not realistic to expect the mix of product types demanded to be constant. Yet if we try to change over from one product type to another, as each item goes through the cell we may encounter material handling and productivity problems ‘The alternative of producing large batches of one product type between changeovers reduces these problems, but at the price of slowing response to customer requirements for different types, and sending large waves of component orders upstream. This will require holding substantial inventories of finished goods downstream from the cell—in the hope that we will have on hand what the customer wants—and of the necessary parts and components upstream of the cell. Both of these inventories increase the lead time through your value stream. To achieve and maintain continuous flow and a lean value stream we need to schedule and operate a cell, particularly when it is a pacemaker process as in the Apex case, with as little volume fluctuation as possible. We call this ‘leveling the volume’ of work. Similarly, we need to decide on the most appropriate batch sizes to run before changing over to another product type, We call this ‘leveling the product mix.’ Both volume leveling and mix leveling must be part of your cell design process. Part 6: Connecting to the CustomerLeveling the Volume If the customer's schedule to a pacemaker process fluctuates widely over extended periods, you will need capacity (people, machines, material) well above average long-run demand in order to always meet customer needs. But, for the more typical peaks and valleys in demand, when long-term average demand is fairly stable, establishing a supermarket of finished goods between the pacemaker process and the customer can allow you to level production requirements in the cell while still satisfying the customer. The cost of the supermarket—linked to the cell by pull signals—is often much less than maintaining extra capacity Life would be simpler if customers were the only cause of demand fluctuations. But in ‘most processes internal variations in performance also create waves of demand variation. For example, the pacemaker process may at times experience machine problems, quality defects, or missing materials that cause its ouput and material requirements to vary. You have the choice of either responding very quickly to these problems to maintain level output, or adding more inventory of finished goods downstream and parts upstream from the cell. day-to-day volume fluctuations e Finished Goods Customer Supermarket Creating Continuous FlowRapid response to problems is the better choice. To respond rapidly you need to become aware of problems as soon as they occur. Speed of awareness is related to how much production you release to the pacemaker at one time. For example, if production control releases a daily schedule to the pacemaker process, managers and production associates will tend to find out how they are doing only toward the end of the day. At that point it may be hard to catch up and the whole discipline of working to takt time will have been lost. What you need is a much smaller ‘management time frame’, by which we mean the amount of work you release to your pacemaker and the amount of finished goods you take away. By reducing your management time frame and responding quickly to problems, it should become possible over time to produce a consistent volume without needing to hold extra finished goods inventory “just in case”. Ideally, Apex’s production control would release one takt worth of production (one fuel line) to the pacemaker cell every 40 seconds. At the same time, material handling would take away one finished fuel line. This would be true continuous flow. Apex would be able to discover any production problems “instantly” within a single takt time. What is your management time frame? + What increment of work are you releasing? + How often do you know your performance to customer demand? Part 5: Connecting to the Customer‘The problem, of course, is that releasing and taking away one takt ata time at each of your pacemaker processes would require an army of material handlers. Apex will need to employ a more practical approach based on the concept of ‘pitch.’ Pitch is the take time multiplied by some number of pieces that gives a practical time increment for releasing and taking away work at the cell, An often-used multiplier is the finished goods packout quantity. At Apex the packout quantity for the cell is 30 pieces per container, We get from Apex’s packout quantity to a pitch with the following formula: 30 pieces per container Pitch = x 40 seconds per piece (takt time) 1200 seconds or 20 minutes 20 minutes would be the basic scheduling increment, or “heartbeat”, for Apex’s pacemaker cell. Based on this pitch, Apex can establish a material handler route through the plant. Every 20 minutes he or she will bring the next 20 minutes of schedule for the cell and simultaneously take away 20 minutes of production—one container of 30 pieces. This technique of ‘paced withdrawal’ will allow Apex’s managers to always know within 20 minutes if they have a problem. If a fast problem-response mechanism is in place it should be possible to correct problems and get production back on track without the need for large amounts of overtime. Apex managers can truly manage their cell by pitch if they: 1) Know the target (30 pieces every 20 minutes). 2) Check progress regularly to spot abnormalities (every 20 minutes) 3) Quickly respond to abnormalities. Remember that the operators will be working very nearly to the full takt time. They cannot solve the problem and stay on pitch. Instead the team leader will usually need to step into the cell to address the problem, or switch places with an operator who can rework defective parts. Creating Continuous FlowManaging a cell by pitch is most feasible when changeover times are very short. Ideally the changeover time will be less than takt time, This goal should be addressed by engineers who design the machines for the cell. Fortunately, this is the case for the Apex cell where the longest changeover time is 20 seconds. Whenever you encounter changeover times that are significantly greater than takt time you will need to assign changeovers to specific pitch increments and skip one or more pitches each time there is a changeover. ‘There are many possible pitch intervals, and you need to find pitch times that make sense for your own situation. We sometimes begin with longer pitches and move to shorter ones as the capability of the pacemaker process is improved. Note: Pitch and paced withdrawal are used to detect problems in a pacemaker process, not to make operators work harder or faster. Leveling the Mix Producing large batches of one product family variant in the cell makes it hard to supply the customer with a variety of product types in a short lead time without holding extra finished goods. Batching also tends to send surges of demand for particular components up your value stream. This forces upstream processes to hold more inventory to handle the surges. To minimize batching, surges, and upstream inventory, you need to level the product mix of your cell. You can measure the degree of batching in any process by looking at its ‘EPE’, which means “every-part-every-interval”. EPE indicates how often a process can produce each of the high-running product types it makes. For example, if a process can produce all of its high-running end items every day, then EPE becomes “every-part-every-day.” ‘An appropriate EPE for pacemaker processes is “every-part-every-ship-window” or “every-part-every-day”, whichever is smaller. Apex makes two shipments of fuel lines per eight hour shift (with all three product family variants potentially included in each shipment). The goal for Apex’s cell should be an EPE of every-part-every-four-hours. Apex’s managers will need to calculate changeover frequencies accordingly (with six changeovers per shift. Part §: Connecting to the CustomerThe Load Leveling Box One good tool for leveling production volume and production mix at the pacemaker is a load leveling box. This simple device has a column of slots to hold the kanban for each pitch interval and a row of slots for the kanban for each type of end item running through the cell. In Apex’s load leveling box the columns would represent 20-minute increments (the pitch). It would contain three rows of slots for the S, L, and A fuel line variants. On each box of finished fuel lines in the cell's finished goods supermarket there would be one kanban card indicating the following: # Type of fuel line (S, L, or A) + Quantity in the box (30 pieces) ‘Supermarket address + Cell address [As production control pulls a customer order from the finished goods supermarket to stage it for shipping, the kanban cards are removed from the boxes and placed into the load leveling box for the pacemaker cell in a level mix for each ship window (four hours). ‘The material handler serving the cell then withdraws kanban from the box at the pitch increment (20 minutes) and delivers them to the cell to initiate production. Apex’s load leveling box Creating Continuous FlowKaizen the Ship Frequency Many manufacturers are required to make daily (or even more frequent) shipments to their customers. This is a blessing because it establishes a rapid ‘clock speed! for your pacemaker process, within which it must be able to produce all of its high-running part numbers. If you get to the point where the EPE for all of your processes (both pacemakers and upstream fabrication) equals the ship frequency, then your entire value stream will flow. Your facility will be a ‘money pump’ that converts raw materials into final products that can garner cash before the materials bills come due. However, if your customers requite only infrequent shipments or fail to steadily reduce the ship interval there will be little pressure on your pacemaker and upstream processes to improve. Steadily increasing ship frequencies is therefore a highly worthy kaizen project for you and your customers. Leveling Production in a Make-to-Order Environment Make-to-order processes, such as production of custom items, stock picking in warehouses, and even administrative processes, are often mistakenly considered unsuitable for continuous flow processing and workload leveling, since the work content involved in each customer order varies too much. In fact, you can approximate continuous flow and achieve many of its benefits in make-to-order processes by maintaining a FIFO (first-in, first-out) flow through the processing steps and carefully regulating the quantity of work you consistently release to that FIFO chain of steps. Instead of releasing work in increments of customer ordering, release work based on a standard, consistent time increment or ‘pitch.’ Do this by finding the bottleneck operation in your FIFO chain of make-to-order processes. Then break down orders not by customer, but into equal time increments based on the bottleneck’s capacity. The bottleneck process then becomes the ‘pitch set- ter’ for the FIFO chain. The result is a much more consistent work flow that quickly highlights flow interrupting abnormalities. Just like continuous flow processing. Part 6: Connecting to the Customer7 Question 11: How Will the Pacemaker React to Changes in Customer Demand? We have now given lengthy attention to the Apex fuel line cell in order to integrate Man, Machines, Materials, and Methods. After all this work it would be geeat to finish kaizening the process during implementation (as explained in Part 6) and then run it as designed forever! Unfortunately, this will be impossible for wo reasons. First, kaizen is never finished and second, customer demand always changes. In particular, changing volume requirements, are something that anyone who is designing a pacemaker process needs to consider from the beginning of operations so thar they can be ready to respond. Responding to Change in Customer Demand ‘Many facilities are only subject to small day-to-day fluctuations in demand, A year-long history of shipments will often show that demand is stable for periods of time. The customer takes a little more today, a little less tomorrow, and over time it balances out. Smaller day-to-day demand fluctuations are best handled by use of a finished goods supermarket. The supermarket allows managers to set the takt time and the number of ‘operators and makes it possible to manage continuous flow for extended periods. But eventually the average customer volume requirement will change and the pacemaker process will need to respond. If volume drops and you keep the same number of operators, productivity will fall and the potential for overproduction will increase. If volume increases then the take time for the cell will decrease (the takt time bar moves down the OBC). You will need to add people and perhaps machine capacity to continue producing to takt. Responding to an increase in demand Creating Continuous Flow“The periodic need to increase or reduce the number of operators is one of the main reasons for utilizing cells and arranging them in a narrow U-shape, The great variety of walking patterns offered by the U creates many options for redistributing the work elements over a different number of operators. ‘When designing a cell, engineers should prepare ‘one-up’ and ‘one-down’ scenarios for responding to changes in volume requirements. They do this by drawing OBCs for the current number of operators and for work distributions with one less and one more operator. We call these different positions ‘toggles’ because they are like the different positions on a toggle switch. You can alter the output of a cell by ‘toggling’ the number of operators up or down in response to changing customer demand. Over the next 18 months of operating the fuel line cell at Apex, the customer demand, number of operators, and output per operator (labor productivity) may look as follows. Apex’s customer demand/shift anor Aprine lySept OctDee Jandfar — AprJune Part 6: Connecting to the Customer nApex’s number of operators amount of overtime (imtoo per shift Jamar AprJine y.Sept OctDee Jantar Aprune Apex’s hourly output per operator increases due to a ongoing kaizen Jener prune dulySept Oct Dee Torsune Note: ‘The hourly output per operator (labor productivity) remains constant (with a bit of improvement toward the end from continuing kaizen) despite changes in ‘customer demand and the number of operators. This is quite an achievement and, in combination with true continuous flow, is a hallmark of a lean pacemaker process. We call this achievement ‘labor linearity’, meaning that at each toggle position—with different numbers of operators in the cell—the work content for every operator stays very close to takt time. R Creating Continuous FlowApex has three options for reacting to changes in customer demand, listed in increasing order of volume change: # Absorb day-to-day customer fluctuations with a finished goods supermarket. Run a little overtime each shift (which can only be done if there is a time gap between shifts, making this difficult in three shift operations). It is better to run a little overtime than to stop production a little early because operator productivity stays high. ‘+ Toggle the number of operators. This list of options also corresponds to the frequency with which you should resort to them. It’s better to try to deal with demand variation through overtime and the use of a finished goods store, These two options can be used daily. But in our experience the minimum time frame for maintaining a toggle (at a particular takt time and staffing level) is a week, and we strongly recommend two weeks to a month, And when you are starting up a new or redesigned cell, as Apex will shortly, you should try to maintain takt time even longer, say three months, to give yourself time to kaizen the process and develop your process management routines. Note: Trying to change the takt time as you toggle is difficult because you must also change work distribution and redeploy people. For this reason, lean facilities try to maintain their takt times for some period of time. Toyota, for example, currently recalculates takt times in its vehicle assembly plants monthly. Increments of Capacity Increasing output above current process capacity will require not only more operators but more machines. Fortunately, lean cells typically use small, simple, inexpensive equipment that permits flexibility in responding to changing customer requirements. In many cases you can increase capacity incrementally by adding a machine to the cell. We call this ‘increments of machine capacity.’ If even more capacity is needed you can choose to make some of the product in an existing adjacent cell, adding some machinery there if necessary. Finally, if large increases in output are needed it may be appropriate to add another cell ‘We call this adding ‘increments of cell capacity.’ These options require redeployment of people, plus capital spending and significant lead times. You want to make sure that you s of kaizen in your cells and have high machine reliability before you consider spending major sums on more capacity. have achieved the full bene! Part §: Connecting to the Customer BMoving Assembly Lines Are a Little Different The term ‘cell’ implies that the material being processed is moved by the operators, {although cells can have segments of moving conveyor). Alternatively, many pacemaker processes are built around a moving conveyor that advances the material. ‘Moving lines are typically used to handle large products or in situations where a stronger method of pacing is necessary. The product is brought to the operator by the moving line and the workstations are usually all the same size. Sometimes operators are located on only one side of a moving line, which then makes the line even more similar to a cell The operator balance chart and many of the concepts in this workbook can be used for designing, maintaining, and improving continuous flows on moving lines. {A difference with moving lines relates to changing the number of operators in response to 1 change in customer demand. A great advantage of cells is their flexibility to adjust output volume, You can also achieve output flexibility with moving lines. For example, you may be able to halve the output of some moving lines by shifting from one operator per station to one operator every other station and slowing the conveyor to 1/2 speed, or by having cach operator work through two stations instead of just one. ‘Alternatively, you can insert empty workstations periodically along the line and add operators at those positions when the customer demand increases. Line output then increases, but of course you have to redistribute the work elements over the higher number of operators. ” Creating Continuous FlowPart 6: Implementing, Sustaining, and Improving Using the Apex example as our guide, we have now worked our way through eleven questions to introduce continuous flow in a pacemaker process. For Apex’s new cell we have a target of operating with two production associates. However, you should have noticed that the total work content for each operator is still more than takt time. This is normal at this point because not all waste can be eliminated during paper kaizen. To do this you will need to work on the actual process on the shop floor. ‘Working out the waste on the shop floor is called ‘debugging,’ In this last part of Creating Continuous Flow we will implement our improvements to the fuel line cell and then ‘debug’ it with intensive kaizen of such items as fixtures and parts presentation, and the reduction of something called ‘incidental work.’ These efforts will conclude the process design effort and transition us to the daily operation of the cell No design can be made perfect on paper. As you implement your continuous flow on the shop floor you will uncover details that you missed and more waste to be eliminated. This presents the opportunity to get greater input from everyone in your continuous flow implementation effort. The question for your team now is, “OK, what do we all need to do to make this work?” ‘One word of warning: The first continuous flow cell in a facility is often the most difficult to introduce, but is also the most important. Once people see a concrete example of true continuous flow, one that defies all the reasons why it wouldn’t work, then they can begin to think of new ways to improve and spread continuous flow in your facility. For this reason it is a good idea to work very hard with one cell to ensure its success, and then spread this success to other processes. Implementation Planning Before you start implementing a new process you should quickly draft an implementation plan. This will help you check if you are actually achieving your targets o if more work is necessary. The implementation plan should contain the reason for improving the process, 4 summary of the current and target conditions, an implementation schedule, and a place to record quantitative targets and results. Part 6: Implementing, Sustaining, Improving 5Apex Tube Company—Continuous Flow Project Truck Fuel 1e Pacemaker Cell 1) Background/Business Case ~<— Be sure to link your plan to business objectives Product - S/L/A Fuel Lines Location - Anytown 7 | ne Needs: 5 * Customer requires 5% cost reduction 7 + Improve productivity es oye 4 2) Initial condition + No continuous material flow + No people fiow (operators stay at one machine) + Unstable output + Too much overtime + Not working to takt time + Too many operators for demand rate 29 feet 580 square feet 56 pieces in process Oo A Ascombly A 20 AN © © eee Bs x be Bender [= 7 oats, oT] (eutomatic) r Tester 25 pn Le [= AN a 7 7 FOF A (fished goods) 76 Creating Continuous Flow3) Target Condition take 14 foot Cireuit a - —_— Assy Il angled to keep cell inside width about 5 ft. parts & materials presented on flow racks from outside cell single piece of in-process stock left in machine as operator moves on no obstructions in walking paths no space for WIP accumulation tester angled to bring cell start and end together 4) Implementation Task introduction Training Mock Up/Teal ‘Add Auto Eject Reconfigure cell ‘Sta, Work Training “Train Material Handlers Celi Debugging Fished Goods Supermarket Production Kanban Frequent Withdrawal Helunka Box © Proposed Start @ Actual Start (Planning/Tracking) © Review A Proposed Completion 4 Actual Completion (Eval © On Target A Behind Target X Trouble ation) 5) Indicators Cun Caro Be sure to include goals so level of 21 ba success can be e727 evaluated. Part 6; Implementing, Sustaining, Improving n8 ‘The goal of implementation planning is not to create lengthy, intricate documents, but to develop a workable plan that anyone can understand and then to get to work. We suggest your overall cell implementation plan should fit on a single sheet of 11” x 17” (A3) paper. ‘And we strongly recommend that you draw up these plans yourself, by hand, and in pencil. This will ensure that you understand the plan and know if it makes sense, Contrary to common thinking, the most important part of implementation planning is not creating the plan itself, but rather using the plan to regularly review progress and address problems. You can only tell where a project needs help when you have a plan against which to compare progress. Once again, it is imperative that management: 1) Know the target or goals (ie implementation project targets and milestones). 2) Review the process regularly to spot problems that affect achieving the goals (for our Apex example: progress review every 30 days). 3) Respond quickly to those problems to get back on track. With your plan in hand you can review your implementation progress at intervals just like the pitch of a paced withdrawal. For example, if implementation milestones occur monthly then review progress against the plan every 30 days. Implementing the Flow Once you have an implementation plan it’s time to get to work. Typically, continuous flow implementation is started by a team of managers, engineers, and the production team, But once an initial design is in place the degree of operator involvement rapidly increases. Stage 1. Initial Process Design The initial design of a continuous flow is primarily the responsibility of management and engineers. Continuous flow design is not a bottom-up, self-directed team process. Generally a small group of people should first come up with an initial design. Why? Because getting. any large group of people together and asking, “How should we run this process?” almost always results in chaos. A small team of managers, engineers, and someone from the production team should create the initial flow design, based on real data and times that they collect on the shop floor, using the detailed design process presented in this workbook. The new process design must be based on shop floor realities. If you tend to design cells primarily in an office using CAD systems and standard time data you will be headed for problems. Creating Continuous FlowWhy would the production team be willing to let a small team make the initial cell design? Because they should know that after the detailed, real-daca based design process, they will have ample opportunity during the mock-up and 2~4 week debugging period to fine tune, improve, and even alter the cell design. Stage 2. Mock-Up The initial process design and operator balance chart represent theoretical ideas for creating, a continuous flow. Now itis time to bring in the experts—the production team. Explain the initial continuous flow design to them, try out the new process, and start getting more of their input. A good place to begin is to show the operators the layout diagram and operator balance chart, and to discuss the goals of the project. In many cases you may also decide to run a non-production mock-up of the new process. [A process mock-up includes not only the physical process, but also a Standard Work Chart (SWC) for each operator or workstation. These SWC forms vary in appearance from company to company, but like the implementation plan we recommend using an 11” x 17” sheet of paper. A typical SWC includes the major sequential steps at each workstation, the time needed for each step, and key points, such as quality checks or critical adjustments. For example, a key point on an Apex SWC would be that after placing the fuel line in the fixture, rotate it 20 degrees to get a good fit. A sample SWC for the Apex fuel line cell is shown on pages 80-81. Implementation stages ~ Flow functions as designed CCL Part 6: Implementing, Sustaining, ImprovingAssembly | e ° OY ‘Apex ‘Standard Tube C Work Chart Truck Fuel Lines 80 Creating Continuous FlowTakt Time 40 seconds Job Elements ‘Assembly | Job Element ‘Comments Get bent tube Press into fixture Get connector 4 | Place & clamp 5 | Get hose 6 | Place to fixture Rotate 20° 7_| Start cycle & | Get finished part, attach convolute Total Time ‘hitt Check Improvement Idea Team Leader Supervisor Worksheet: Product changs Operator Part 6: Implementing, Sustaining, Improving92 SWC are used to explain the work to the operators, to check how the work is being done, and to form a basis for developing and capturing improvement ideas. The SWC should also include an area to note improvement needs, a sketch of the workstation layout, and operator movements. SWCs should be prepared by hand and in pencil. Never laminate them. Computer printed or laminated SWCs imply that someone has already decided exactly how the cell will run. ‘The goal of the mock-up is to introduce operators to the process design and to find improvement opportunities before the actual process is deployed on the shop floor. At this stage avoid making the various part presentation devices and workstations permanent. That makes you less willing to undertake further adjustments! As much as possible try to make improvements immediately during the mock-up. Encourage a quick and practical approach. For example, if a parts presentation device is too low have someone temporarily hold it higher or put some bricks under it to find a better position. Stage 3. Debugging ‘The mock-up phase for an existing process should take one day, slightly longer for a totally new process. Once improvement ideas from the mock-up have been incorporated into the process you are ready to set up the cell and get into the 2-4 week period we call ‘debugging’. Debugging is without a doubt the most important phase of implementing an efficient continuous flow. This is the time when the process begins operating and is improved to the point where it can make production as designed. During debugging the hourly customer requirements are introduced. The cell will run with the correct number of operators and be watched closely every shift by supervisors, maintenance, and engineers for kaizen opportunities. Debugging is also the time to start using the systems you have developed for supporting and managing the cell. With the equipment in place on the shop floor it’s time to start up. No matter what staffing is called for on the OBC, first start running the cell with one operator handling all the work elements from start to finish for about two hours. Ask the operator to make suggestions as he of she goes through the cell. Take notes right on the SWC. This single- operator approach allows you to see the actual process flow and discover ways to improve it right away. If you begin with all required operators in the cell the process flow will be harder to recognize. Creating Continuous FlowAfter running the cell with one operator, switch to two operators running the cell in a circuit walking pattern, Finally, run the cell with the staffing level and work distribution called for in the OBC. Make sure each operator who will work in the cell has the opportunity to try it out. Don’t worry about achieving the takt time just yet. As operators run the cell, the supervisors and cell design team members should stand close by to look for more ways to improve the cell and record those ideas on the standard work charts. Encourage operators to recommend ways to improve the cell. Then make the improvements that night and update the standard work charts. [As you observe a process in operation, watch operator work motions carefully. You will alue-creating, incidental work, and waste. Waste see three categories of work motions should be eliminated. The work-motion category ‘incidental work’ involves motions that operators must do to be able ro produce the product, but thar don’t actually add value for the customer —like getting parts and tools, or threading nuts onto bolts. Incidental work is necessary, but it should be minimized. Make the bole as short as possible, so only minimum threading is involved in tightening the nut. Present parts and tools as close as possible to their point of use to minimize reaching, Categories of Work Motion Examples: + Weld flange onto part + Bolt part to product Value- Creating Examples: + Walking to get parts + Waiting Examples: + Pull down tool Incidental Work Part 6: Implementing, Sustaining, ImprovingHere are some points to keep in mind for the debugging period: «+ Keep the elapsed time between communicating about a new process and actually starting it up as short as possible. Itis better to judge a change from real experience rather than from hearsay. Once a change is begun people can turn their attention to the reality of making it work. © The engineers and maintenance staff need to work with the new process until it functions as designed. The debugging period ends when the cell or line functions consistently as designed * Because the debugging phase usually lasts from 2-4 weeks you will need to begin carly enough to get up to the customer demand rate. If you are converting an existing module, you should plan ahead and build up a stock of finished goods to ensure that customer demand will be met during the transition. Do not change the takt time during the debugging period, and for as long as possible afterward. It takes time to develop the critical routines for running and managing a new cel. Achieving 60-65% of target production on the first day is not bad! 80% is often reachable in about a week, and 90% within two weeks. The cell's success is everyone’s responsibility. If the cell is not moving closer to its goals, the entire team of operators, managers, and engineers must work to solve the problem. Implement improvement ideas quickly, overnight if possible. * The operator balance chart and standard work charts must be kept up to date. should now begin to be updated by the team leader and supervisor. hey People have attachments to ways of doing things, so when a new cell is introduced there will be a transition period. On average, it takes three weeks for people to become accustomed to a change, As normal resistance to change arises, remember that continu- ous flow is not optional. There is no going back to fake flow. However, how to achieve continuous flow is optional and the place for many creative ideas from all participants. Mark milestones that prove you're making progress. Making the hourly target for the first time, making it two hours back-to-back, or the first time you make the daily target are good occasions to congratulate yourselves. * Near the end of the debugging period the work elements should be carefully relisted and retimed. This is done by the team leader and supervisor under guidance of the engineers who designed the cell. Do not skip this! Creating Continuous FlowA Debugging Checklist During the debugging period, the cell design team and supervisors need to watch the new process frequently and closely on every shift. Here is a checklist of the types of things they should be looking for: Oils there one-piece flow? Can the operator “make one, move one” without waiting? Ask yourself, how would the part build itself? Do operators perform the work as specified in the operator balance chart and standard work chart? If not, why? Has a better method been found? What is the right way to do it? Do the ream leader and supervisor understand their job responsibilities Dees the information flow? Do the operators, team leader, and supervisor know: - What is the take time? - What to make? - How many to make? - How many are actually made? ~ What problems are occurring? - If changeovers are occurring at the correct time? - If changeovers are taking too much time? QlAre parts and materials delivered in the proper quantities? Is the size of flow racks and containers correct? Are there too many parts? Are there part shortages? (Are material presentation devices correct or do the operators reach too far? How are the parts positioned when presented? How do the operators pick them up? Does the cell use the minimum amount of equipment and inventory? Are the correct levels of standard work-in-process inventory being maintained? Is inventory accumulating between machines? (Exception: Where two operators have a hand-off there should be one unit of standard work-in-process stock to account for minor fluctuation in operator cycles.) Is any excess material sitting on the floor? Q Are you using the minimum amount of equipment required to make the product? Is the mized? If a table in the cell is used for just travel distance of moving machine parts mi cone end item in the product family why walk past it all the other times? If the actual work surface of a machine is only 12 inches wide, why is the machine 3 feet wide? (Can the cell change over between different end items in less than takt time? (Does the cell reduce lead time? Compare before and after results. Part 6: Implementing, Sustaining, ImprovingDuring debugging you should start tracking production results against customer demand. You can use a problem awareness board for this. Before the start of every shift the super- visor writes on the board an hour-by-hour list of what parts are to be made and the quantities required to meet customer demand The purpose of the board is not to schedule, but to highlight production problems and trigger response. If goals are not being mer, the team leader should review the problems, use temporary measures to stop the abnormal condition until the root cause can be addressed, and then take steps to address the causes to prevent the condition from occurring again. ‘The supervisor should also be checking the board and signing-off on the production numbers every hour ‘One by one, the problems preventing the cell from meeting takt time should be identified and their causes eliminated. The key during this phase of implementation is to make constant improvement. Be aware, however, that a problem awareness board and the team leader need a support system that helps to eliminate the causes of production gaps. Otherwise the team leader will end up writing the same things on the board every day and the tool becomes meaningless. Example problem awareness board Tine "Team Leader Fuel Line Cell Barb Smith leuantity Take Time Requi 690 AO sec. Tine | Play Act aacwwat | ProblomerCauses | Sievatl 67 navies 20/90 remember->| 78 | 90/20 | 10/170 _| testerfaiure breaks Toe | 00/20 | 270/268 ocso-| 00/05 | 360/255 | sester tare how 90/20 | 450/443 |<— supervisor wed s0/ 20 | 540/593 signs hourly hams 00/26 | 639/619 | vad pares (vales) jwe2| 60/co | 690/679 |-<— area manager ox | 1 Zn | 620/600 | (nines a hourly cumulative Creating Continuous FlowApex’s Debugging Results [Apex’s debugging goal is to reduce the operator need from 2.2 to 2, with operator loading at 95% of takt time. This means reducing the current total work content of 88 seconds to about 76 seconds. In observing the cell during the debugging period the team was able to spot a variety of incidental work items where time could be reduced. * The loading chute for the bender was relocated closer to the Assembly II process, el tubes was placed right next to the and the parts flow rack for raw stainless st bender’s load chute. This took two seconds off the load time. + The auto-eject chute on the tube bender was moved so that finished tubes automatically slide toward the Assembly I workstation, which is the next processing step. This also eliminated two seconds. + With auto-eject added, Apex engineers were able to go ahead with their plan to go from reverse flow to circuit. This meant that the standardized work charts and operator balance charts had to be redone, and the appropriate debugging executed, to achieve smooth natural movement and rhythm by the operators. + The Assembly II operation involves the most parts, so the team paid particular attention to part presentation and handling here. © The Assembly II fixture was improved to reduce load time by one second for two of the four items loaded into this fixture. Total reduction: two seconds. ‘+ By assembling the LH ferrule to the hose first, the operator could then grab the RH ferrule with her right hand and the valve with her left hand simultaneously. The valve is simply dropped into a spot in the fixture. This took out two seconds. + At the packout operation, the finished goods box was raised and angled toward the operator, reducing pack time by one second. The total time reduction for these changes was nine seconds, a fine achievement. However, the team retimed the work elements and discovered that total walk time in the new cell layout, with the tube bender chute position already improved is six seconds. The total work content is 88 + 6 = 94 seconds, and the debugging target is 76 seconds. The nine second time reduction brought the total work time down to 85 seconds, but it is still nine seconds too much. Part 6: Implementing, Sustaining, Improving75 55 45 35 25 20 15 10 TOTAL TIME= 88 seconds after first debugging Place to container Tnepect fe Remove cap & attach hose Place to tester fixture Pull convolute over crimps (Ge Fished poor Ainspect cps Place & clamp LH side Get finished piece, place RH side 1 fxcute be TG Get valve & place to fixture Place & clamp Ger tH ferule 8 assenbie tohose Place to Fixture & clamp [Get hose & RH ferrule, assemble Place to Assembly IIfixture Get finished piece attach comolute Get hose & place Get connector place and clamp Get bent tube & place to ‘Resembiy [oot $6 tube & place tobender| TOTAL TIME= 79 seconds 90 80 75 70 65 60 | & & 30 20 15 10 Place to container Tnepect Remove cap & attach hose Place to tester fixture Pull convolute over crimps! ‘Get finshed pace &nopect orp be — Place & clamp LH side Get, fshed piece place Ri side fixture (Geb valve & piace to future |_ Place & clamp Ger Un forrue& assemble to hose| Place to fixture & clamp Get hose & LH foruie, assemble Place to Assembly fixture Ger finished piece attach contolute Get hose & place Get connector pace and clamp (Get bon tbe pace to Assen (*Get 55 tube & place to bender Creating Continuous Flow‘After carefully watching the flow in the cell for a long time the Apex team made an interesting discovery. At the crimper, the operator requires five seconds to press the nearly completed fuel line into the fixture for a simple and quick crimping cycle. Then, at the very next processing step, the operator takes five seconds to press the finished assembly into the test fixture for a simple and quick pressure-test cycle (another five seconds). ‘With these significant load times and fast machine cycles, the team decided to combine the test process into the crimping operation, utilizing one fixture instead of two. This climinated one loading step and five more seconds of operator time. This also eliminated ‘one second of walk time, because there is one less machine in the cell. Apex’s team made a quick check to ensure that this change did not increase the operator work content at this station to 40% or more of the toral, and thar the effective machine cycle time would still fit under takt time. Total debugging time reduction is now 15 seconds, with a resulting total work content of 79 seconds. Apex will have each of the two cell operators perform all of these work elements in a circuit work distribution. ‘The team has reduced the work content to one second below the takt time, which works at Apex because the one hour time gap between shifts allows for a little overtime each shift. However, a paced withdrawal functions best when operator cycle time is a few seconds under take time. This leaves room for minor cycle variation, hiccups, and swift changeovers without upsetting the paced withdrawal at the pitch increment. ‘The Apex team will continue to work to remove at least an additional three seconds and get operator cycle time to the target of 95% of takt time. Some ideas they have are to automate part clamping into the machine cycle at Assembly II and to use a parts dispenser that automatically drops two ferrules into the operator's hand. Both are technical changes that will take a couple of weeks to realize The team also considered taking the task of pulling the convolute over the crimps (five seconds) out of the cell and moving it to the operator at the customer's assembly plant who installs the fuel line into the vehicle. But they decided instead to keep the value adding work at Apex and figure out how to do it better. Part 6: Implementing, Sustaining, Improving90 Stage 4. Sustaining the Flow ‘Once your continuous flow cell functions as designed—once it consistently makes production—you move from the debugging phase into daily operation. Unfortunately, this is the time when we often see engineers and managers walk away from the new process, thinking that the operators will now be able to take care of things. Itis critical to understand that there is very little slack in a lean system and processes, especially pacemaker processes, will need to be managed. All the elements of lean production are interdependent. Production cells must start on time and function according to standardized work. Team leaders and supervisors must monitor their lines and respond immediately. Material handlers must deliver their quantities on standardized routes at set times. Maintenance must conduct its activities on schedule and respond to line problems very quickly. Ina lean production system both production and support functions are in effect linked to takt time, which means that all are working toward serving the customer. Because the production operators in a lean setting have in-cycle work that is near takt time, they are going to need reliable support systems to handle any significant problems that occur. When production problems occur—and they do, even in the best plants—you will not be able to meet demand if the operators are also your primary problem-tesponse system. [A reliable support system means developing standardized work for team leaders, supervisors, and maintenance—just as there is standardized work for production operators. Among their responsibilities are rapidly detecting and responding to production abnormalities, ating their causes. Standard work for support functions should list their daily and eli tasks and responsibilities, and the times for performing them. Here are three important things to keep in mind as you develop standard work for your support staff. Rapid Response to Problems [As you know from our discussion of paced withdrawal in Part 5 of this book, the speed at which you discover problems at a pacemaker process is related to how much schedule you regularly release to it and how much finished goods you take away. When a new process matures and its production stabilizes, instead of releasing a schedule you can begin to manage it with a paced withdrawal at a pitch increment. This helps to expose problems quickly, fast enough to respond and recover without the need for weekend overtime. Creating Continuous Flow‘The purpose of a paced withdrawal is to quickly detect problems, not to make operators work harder or to get more production out of the process. You have already determined the work content per operator in the previous design steps. ‘The paced withdrawal becomes the “heartbeat” of the continuous flow. When a pacemaker misses a pitch, the team leader or supervisor should react immediately. The goal should be to correct the problem within the pitch increment, and restore the heartbeat. A team leader has several options for reacting to problems and maintaining pitch: ‘© If the pitch quantity was missed because some parts need to be reworked, the team leader can take the problematic parts and rework them while the cell operators go on to make their next pitch. Alternatively, the team leader can step into the work- station where the defect occurred, and that station’s operator can do the rework. + Fora production shortfall, the team leader can step into the cell as an extra operator until the cell is caught up and on pitch again. +f there is an equipment problem, the team leader determines whether or not the problem can be fixed immediately, or if maintenance should be called. When maintenance is called for a missed pitch the target for their response time should be two minutes or less. Audits A good way to keep improvement going, and to prevent backsliding, is to establish a routine of daily, weekly, and monthly audits conducted by overlapping levels of management. In this overlapping system, team leaders audit the work of operators, supervisors audit team leaders, area managers audit supervisors, and the plant manager audits the plant. This may sound like a lot of auditing, but it usually takes less time than you might think. Team leaders and supervisors may spend about 10-30 minutes a day auditing. Area man- agers may spend about 20 minutes to an hour. And the plant manger may only spend one day a month on a formal plant audit in a mature lean operation. These audits should be part of management’s standardized work. Everyone from operator to plant manager has a responsibility to sustain continuous flow. And each member of the management team is expected fo serve as a coach, teaching the audit process to people at the next level. Part 6: Implementing, Sustaining, Improving a1SOUND) ‘osyaradns au Aq yius 94 Jo pue ay e10J9q Ueyer 8q Pinoys YONI” annoa1409 akA xOq # UI paved s! ,X,, UE JeASUSUNA ‘LON HON PazIPJePURIS =MLS ‘uojiaas syuaWUs0D 4} U! 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What is the next level of improvement?” These 30-day process reviews deepen supervisors’ understanding of the processes they manage. At first they may find this analysis very hard to do. But observing each process once a month helps supervisors to concentrate on not just identifying problems, but on climinating their root causes and removing them permanently. While observing a cell supervisors should list what is right and what can be improved, and then talk with operators and team leaders about what they see. Possible observations include: ‘* A previous improvement that hasn’t been incorporated into the standard work. + Parts out of place. For instance, if an operator has to take a handful of screws from a container and place them right in front of his work area, why is the container still located in the old position? * One operator struggling while another works easly. After talking with the operators and team leader about the improvement opportunities, the supervisor should decide what improvements should be made immediately. The goal is to do as much as possible within the next 24 hours. Then decide what can be done within one week, wo weeks, etc. Although cell observations may take place once a month, try to avoid making a 30-day to-do list because they lack the urgency necessary t0 get things done. Frequent improvements add up. One of the best ways to discover them is to review the pacemaker process every 30 days. Improvements bring you back to the OBC, which the team leader or supervisor must update whenever changes are introduced. The OBC brings you back to the questions, “What is the work? What is adding value? What is incidental? What is waste?” These questions, and the OBC, allow you to periodically rethink the processes you manage and to continually improve them, Part 6: Implementing, Sustaining, Improving 95Improvement Leads to Shared Success Improving a cell and removing waste from it, little by little, often reduces the number of operators needed to run it. Eventually it will free up an operator. This creates a great cost reduction for that product family! This achievement represents the combined efforts of everyone involved with a process. But to get this team effort you need to have a plan for the operators who are freed from their current processes. People will not support continuous flow and continuous improvement if it results in loss of employment. Sooner or later everyone’s job changes, because no task stays the same forever, But employment should be secure as long as there is business to support it. People are usually ager to give and implement improvement ideas if they don’t threaten job security. Laying off people because of improvement efforts is out of the question. ‘When people come out of a process they need to go to other meaningful work in the plant, such as becoming a team leader or material handler. A good option is to deploy operators to other processes that are introducing continuous flow. Placing experienced people on these teams lets them apply their new skills and help their company become even more competitive. Another option is for operators to move to Kaizen teams or other improvement teams. ‘When improvement eliminates the need for one operator in a process, many lean organi- zations take the most experienced operators and set them to new challenges. For example, the operator who has learned all the jobs in the cell is kaizened out and trains to become a team leader. Reassigning people in this way helps your organization realize that the purpose of kaizen is ro make processes better, not to eliminate people. Creating Continuous FlowConclusion This book is part of a progession that has been underway in manufacturing throughout the world for years: Shifting away from machines grouped by function or task, to modules that often still process batches, and, ultimately, to achieving true continuous flow. The steps to continuous flow often require sweating the details, which is the subject of this book ‘At the detail level there are various techniques for designing, implementing, sustaining, and improving continuous flows. But the most important thing is to get going. The methods in this book are some of the best we've found because they work together as a system. We are grateful to have learned them and hope you will give them a try. Creating, running, and improving continuous flow is an ongoing task that requires operators, engineers, and managers to work hand-in-hand. Achieving it requires that people in the organization are willing to change the way things are done. Fortunately, everyone benefits from well-designed and well-managed cells. Continuous flow should be recognized as a key piece of a long-term strategy that improves an organization’s competitiveness. Creating true continuous flow in a pacemaker process is a great place to start (or restart) your lean implementation, because it is a highly visible change that will benefie both the external customer and your upstream fabrication processes. But no one can implement a continuous flow from an office. You have to do it on the facility floor. To the leaders we recommend that you participate in design and implementation. No matter how high your title, roll up your sleeves and help create a future state map, learn how to make and read an operator balance chart, conduct your audits on schedule, and respond quickly to help solve problems. Establishing continuous flow at a pacemaker process is just a part of the lean journey. [As described in Learning to See, lean manufacturing involves designing, introducing, and continuously improving entire value streams—from raw material to final customer, concept to launch, and order to delivery—that provide value as defined by the customer, With well-functioning pacemaker processes you will be in a much better position to develop ean value streams. ‘We wish you success and good team spirit in creating continuous flow in those segments of your value streams where it is appropriate today, and expanding the range of those flows as your organization’s experience and skills increase. Don’t Wait! Conclusion 99102 « Shortened lead time, which permits quicker response to the customer and a shorter ‘money conversion cycle” (time between paying for raw material and getting paid for the products made out of those raw materials.) « Problems such as defects quickly become apparent instead of remaining hidden. Problems can be identified quickly and corrected before proceeding. It is easier to identify root causes of abnormalities when they are detected as they occur. + Encourages communication between operations, which become linked in “customer- supplier” relationships. Any item produced before it is actually needed by the next processing step creates waste, such as extra handling, counting, storage, and so on. When you sce batching of even one extra piece you should realize that you have used an operator's time to process and handle an item that was not yet needed. You could have used that person’s time and skills to process something that was needed! ‘When you take a close look at most factories, it doesn’t take long to see that although people are busy, the great majority of their time is actually taken up by processing and dealing with parts not yet needed by the next step, or waiting or searching for the parts they do need. When processes work on only what is immediately needed down the line, large amounts of effort, lead time, and space requirements disappear. Today's Limits to Continuous Flow Ideally you would have a continuous flow from the beginning to the end of your value streams, But the extent of continuous flow in our factories today is usually limited by some of the existing equipment: ‘© Some equipment cycles faster than the customer demand rate, requites large investment, and must change over between different component types (e.g., stamping). © Some equipment is too unreliable to couple directly to other processes. = Some equipment cannot eyele fast enough to meet the shortest anticipated takt time during regular working time (eg: injection molding, casting). + Some equipment, such as for heating, painting, and plating is designed to process batches. ‘To date no one has been able to entirely eliminate the need to produce some batches ahead of time in certain places. But through continuous improvement, creative utilization of existing equipment, and development of simple, reliable equipment that can be dedicated to product families, lean systems are getting closer every day. Creating Continuous FlowAppendix he Standardized Work Combination Table Operator Balance Charts are a relatively simple visual tool that many people in your facility can understand and use to find and eliminate waste in a process. Once you are comfortable with OBCs, you can try an even more detailed process design and analysis tool called the “standardized work combination table” (SWCT). ‘The main difference between a SWCT and the OBC is that the SWCT shows the interac- tion between operators and machines, or between different operators. A SWCT shows the combination of manual work, walking, and machine processing for one operator. The example SWCT shown on the following page was prepared as follows: 1. Calculate and draw in the take time with a vertical red line. 2. List the operator work elements in the order in which they are performed, and number them 3. Enter the operator, machine, and walking times for each work element. 4, Draw the manual work time with a solid line, machine time with a dashed line, and walking with a wavy line. Draw the dashed line for machine cycle time up to the vertical takt time line and then continue it back from the baseline. This will reveal where machine cycle times are too long, causing waiting on the operator’s next cycle, Appendix B 103‘spuoseg oot 08 oe 8 Aqui 23846 aungay 01 200d 9 aye4 220) Oe 9504 01 jquiasse 9 api9} Hy 199 due 9 aumpy 07 20044 ajquiecee ‘aruay 1119 9904 289 jaesey 02 20614 oo yaesae'e 2oard paysiay 290) epoho | Rquiossy 2869 aed 9250429) due 9 200 4 uoreuuos 499 jquosay on candy sepia 04 20189 299 95.299 spuosag SqUaWOIa HOM SOy sow, RL eo yon sean | toutesu02 03 ouyj paysiuy 202I 10, e1qey uoneuquioy 062 sun Sopaon, 1002 ‘zi wdy eq (mea) aqna $5 489 :wos4 40M Pezipsepuers