Instructions for the Lego

Simulation Using Standard Blocks

another 4-peg block and then completing the assembly with a 2-peg block. Operator B
may not
pre-assemble his blocks.”

® “In addition, Operator B must complete a changeover process before each color
change. This
consists of assembling 4 1x8 blocks of the appropriate color as shown.”

“Each product is then staged and shipped by the Shipping Dept.”

“You are each responsible for production in your area - and by the way your
performance will
e individually measured by how much work you get done.”

“We just received a greatly increased order from our customers and we need to see
if we can
roduce it economically and on time.”

“We usually can make 10-12 block assemblies per shift.”

“However, our new orders are for 30 assemblies per shift! 10 Reds, 10 Whites, 10
Blues.”
“Because we've tried to minimize changeovers and due to other constraints in our
equipment,
we like to make batches although not always the same size.”

e “However, our customers want us to ship in groups of 5 as this is a full

truckload and mini-
mizes shipping costs.”

“As is the case with any business, we must make money. So far we have succeeded by
serv-
ing our customers well through your efforts as excellent, dedicated employees.”

“We pay our suppliers $50 for each individual piece and we pay each of you for your
efforts
$200 per shift. Our customers pay us $350 for each completed assembly.”

“We will use this information as well as your production data to record information
on Cus-
tomer Satisfaction (Delivery Performance) as well as Financial Performance on the
charts next to
each of your areas.”

“For those of you not directly involved in the production process, we want you to
be observers
and be prepared to help collect lessons learned and offer suggestions for
improvements for future
runs."

e “Supervisors — please prepare your production teams and be ready when the shift
starts.”
on separate copy of Today’s Production Schedule will be given to both Operators A
and B.
Notice that it tells you to make the assemblies in various size batches from
quantities of 1 to 5
and what order to make them in.”

® “Once Operator A makes a batch, it is passed on to Operator B. Once Operator B

makes a
batch they go to Shipping. Shipping arranges them in lots of 5 to go to the
customer. That's the
way the customer wants them.”

® “This entire shift lasts 4 minutes. Start your shift.”

OF

SOOs

®@ Evaluating the run and discussion

@® Record all the results on Financial sheet. The number of units produced probably
ex-
ceeded 12 by a small number; if so, compliment the team on improved performance.
However,
point out the fact that production was far below the goal of 30. (Turn in your
results to the Lead
Facilitator as quickly as possible.)

® Debrief the team, use the observer guidelines for structure (if needed), and
quickly get
the most important points captured. Ask for ideas to improve the output. Quickly
settle on
the notion of organizing the workplace (5s) to sort the components into the right
sizes and colors
and get rid of the extraneous blocks.

® Lead Facilitator will call the group to attention to the front; review the
delivery perform-
ance and financial data. Collect comments from each table. Congratulate the group
ona
good effort and for producing more than ever before - but point out that this falls
far short
of meeting customer requirements and that we cannot continue this financial
performance

Instructions for the Lego

Simulation Using Standard Blocks

and stay in business. We trust that your ideas for improvement will make a big
difference.
Instruct the team leaders to proceed with Run 2.

. RUN 2:

® Organize the blocks by color and peg count at the work areas of both operators.

Both operators should have the needed items to make 20 units of each color. The
duplicate
quantity of blocks that was recommended in the list of materials will save
considerable time at this
point by avoiding the tedious sorting step.
® Express confidence about reaching the goal of 10 Reds, 10 Whites and 10 Blues now
that
the 5s activity was completed and the workplace was organized. Ask the operators to
work faster.

® Allow Operators to move closer and be seated IF identified as an improvement.

® Let the Operators organize their workspace IF they request the improvement.
® Include work instructions for changeover and assembly at each station.

e Repeat the run using the new schedule to both Operators A and B. Note the use of
color to
simplify schedule adherence.

@ Evaluating the run and discussion

® Stop the run at 4 minutes of elapsed time.

® Record all the results on Financial sheet. The number of units produced probably
ex-
ceeded 12 by a small number; if so, compliment the team on improved performance.
However,
point out the fact that production was far below the goal of 30. (Turn in your
results to the Lead
Facilitator as quickly as possible.)

® Debrief the team similar to after Run 1. Discuss the delivery performance and
financial re-
sults in terms of relevant concepts in the Tutorial. Discuss the components of cost
and how they
were affected, particularly the build-up of inventory from overproduction. Discuss
why overpro-
duction is undesirable (e.g., raises costs, creates congestion, can keep us from
making the right
products for our customers). Lead the group to the improvement suggestion of
getting the shipper
to help with the changeover process as he has the least amount of work to do. The
shipper can
pre-build the changeover device; Operator B must tear it down when finished with
that color. The
shipper can rebuild it (as a task external to the changeover itself per SMED
techniques) for its
next use. Note: if the team comes up with another viable way of balancing the
workload that
seems feasible consider their idea and improvise as appropriate.

® Lead Facilitator - bring the attention back to the front. Review the Delivery
Performance and
Financial Results - compare them to Run 1 and commend them for any improvements.
Get com-
ments from each table. Challenge them that while this may be a substantial
improvement, it still

does not meet the Customer Satisfaction or the Financial Goals of the business. We
must make

some additional improvements in our manufacturing system.

Instructions for the Lego

Simulation Using Standard Blocks

® Set the stage for Run 3

®@ Using the Tutorial sheet revisit the definition of a Pull System. It is useful
to contrast this
with a Push System which existed in Runs 1 and 2. Also, point out the scheduling in
Runs 1 and
2 was done from centrally generated list that did not link the operations together
(i.e., each proc-

ess was trying to optimize its own performance, not that of the “system”. The term
for this condi-
tion is “isolated islands’.

RUN 3:

® This run will primarily teach about the Kanban.

® Preparations

® Provide enhanced work instructions to each process.

® Between Operators A and B place the Kanban sheet and load each square with a sub
assem-
bly. These will serve as a “store” to supply Operator B and the Visual Controls for
Pull Scheduling
signals between Operator A and Operator B. When Operator B needs a particular color
sub-
assembly, he pulls from the “store” after Process A and completes the assembly. As
soon as Op-
erator A sees an empty square, that serves as his instruction to produce another
sub-assembly of
that color - that is to produce in accordance with what his customer needs or “Make
To Use”.

® Instructions from Lead Facilitator

e will now produce the same as before for delivery to the Shipper, but due to
customer re-
® We will d th before for deli he Shi but di te
quirements still ship in batches of 5.”

® ‘The sheet of paper between A and B with the three marked squares represents both
a Store
and a Visual Control that will send a Pull signal to Operator A.”

® “Notice that we have placed some strategic inventory on each square.”

(The 3 squares between Operators A and B should contain partial assemblies.)

@ Once the participants understand the rules, start the run.

e Evaluating the run and discussion
® Stop the run at 4 minutes.

® Record all the results on Financial sheet. Point out the fact that production was
still below
the goal of 30. (Turn in your results to the Lead Facilitator as quickly as
possible.)
® Debrief the team. Chances are slim that all goals have been reached and the run
was profit-
able. Note if productivity improved, Work-In-Process inventory was greatly reduced,
and delivery
performance was 100%. Stress the need for improved profitability. Ask for their
ideas that
would make even further improvements.