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Internal | PA-CF/DBE | 4/17/2013 | © Bosch Packaging Systems AG 2013. All rights reserved, also regarding any disposal, exploitation, reproduction, editing,
distribution, as well as in the event of applications for industrial property rights.
Process Improvements in a Complex Environment
Packaging Technology
Process Improvements in a Complex
Environment
Sebastian Kühne (PA-CF/DBE)
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Internal | PA-CF/BPS | 4/17/2013 | © Bosch Packaging Systems AG 2013. All rights reserved, also regarding any disposal, exploitation, reproduction, editing,
distribution, as well as in the event of applications for industrial property rights.
CV
Packaging Technology
Sebastian Kühne
2003 – 2009
2009 – 2011
2011 – today
Mechanical Engineering, University of Karlsruhe and Purdue
� Major: Production Planning & Control, Production Technology
Bosch, Division Packaging, Waiblingen, Germany
� Junior Management Program (JMP)
� Focus: Order Clarification, Logistic & Assembly Processes
� Various Trainings in the Bosch Production System (BPS) &
Project Management
Bosch Packaging Systems AG, Beringen, Switzerland
� Lean Resultant for Business Unit “Confectionery &
Chocolate”
� Active lean implementation support for our sites worldwide
� Conduction of Lean Maturity Assessments
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Internal | PA-CF/DBE | 4/17/2013 | © Bosch Packaging Systems AG 2013. All rights reserved, also regarding any disposal, exploitation, reproduction, editing,
distribution, as well as in the event of applications for industrial property rights.
Process Improvements in a Complex Environment
Packaging Technology
Content
Introduction to Bosch & Packaging Technology
Demonstration of Complex Environment
Fostering Lean Management
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Internal | PA-CF/DBE | 4/17/2013 | © Bosch Packaging Systems AG 2013. All rights reserved, also regarding any disposal, exploitation, reproduction, editing,
distribution, as well as in the event of applications for industrial property rights.
Process Improvements in a Complex Environment
Packaging Technology
The Four Business Sectors of Bosch
Energy and
Building
Technology
Industrial
Technology
Automotive
Technology
Consumer
Goods
Division: Packaging Technology
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distribution, as well as in the event of applications for industrial property rights.
Process Improvements in a Complex Environment
Packaging Technology
Business Units of Bosch Packaging Technology
Packaging
Services
Pharma Confectionery
& Food
Liquid Food
Asia Pacific 2) 34%
America
13%11%Asia Pacific 2)
12%12%
75%76%Europe
50004700Associates
27%30%America
39%44%Europe
914791Sales
20122011
26%
rounded figures
sales in million euro
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Internal | PA-CF/DBE | 4/17/2013 | © Bosch Packaging Systems AG 2013. All rights reserved, also regarding any disposal, exploitation, reproduction, editing,
distribution, as well as in the event of applications for industrial property rights.
Process Improvements in a Complex Environment
Packaging Technology
Content
Introduction to Bosch & Packaging Technology
Demonstration of Complex Environment
Fostering Lean Management
6
Internal | PA-CF/DBE | 4/17/2013 | © Bosch Packaging Systems AG 2013. All rights reserved, also regarding any disposal, exploitation, reproduction, editing,
distribution, as well as in the event of applications for industrial property rights.
Process Improvements in a Complex Environment
Packaging Technology
Complexity through Global Footprint
7%
Alphaville BR
Hangzhou CN
Tokyo/Funabashi JP
Weert NL
Schiedam NL
Togliatti RU
Remshalden DE
Singapore SG
Verna IN
Kaiseraugst1)CH
Beringen CH
Ecublens CH
Romanel CH
Viersen DEDierdorf DE
1) Cooperation Partner Rotzinger
New Richmond USChengdu CN
Cairo EG- Every site with own sales,
engineering & historical background
-Sites differ a lot in size: from 60 till
900 associates
- sites have different maturity level
regarding lean management
- 15 true production sites, number
increasing
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Internal | PA-CF/DBE | 4/17/2013 | © Bosch Packaging Systems AG 2013. All rights reserved, also regarding any disposal, exploitation, reproduction, editing,
distribution, as well as in the event of applications for industrial property rights.
Process Improvements in a Complex Environment
Packaging Technology
Complexity through Portfolio
Process
Technology
Primary
Packaging
Secondary
Packaging
& Handling
System
Competence
From assemble/make to orderI
Ito true Engineer to order
Length [m] ~3
Width [m] ~1.5
Machines/year 60
Sales Price [T€] ~100
Design Hours 20 h
Lead Time 2 Months
Length [m] ~50
Width [m] ~20
Machines/year 1
Sales Price [M€] ~15
Design Hours 1500 h
Lead Time 14 Months
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Internal | PA-CF/DBE | 4/17/2013 | © Bosch Packaging Systems AG 2013. All rights reserved, also regarding any disposal, exploitation, reproduction, editing,
distribution, as well as in the event of applications for industrial property rights.
Process Improvements in a Complex Environment
Packaging Technology
Content
Introduction to Bosch & Packaging Technology
Demonstration of Complex Environment
Fostering Lean Management
9
Internal | PA-CF/DBE | 4/17/2013 | © Bosch Packaging Systems AG 2013. All rights reserved, also regarding any disposal, exploitation, reproduction, editing,
distribution, as well as in the event of applications for industrial property rights.
Process Improvements in a Complex Environment
Packaging Technology
Decentralized Approach to Foster Lean Management
Head-
quarter
Site
Site
Roadmap & A3s
Site
Site
Site
Challenge &
Support
Recommend
Exchange
Vision, Target &
Principles
� we collectively defined a vision (“Ideal
Value Stream”) & a target (-50%TPT)
� site management defines for themselves a
lean roadmap how to achieve the target
� Headquarter challenges this roadmap and
offer support in case it’s necessary
� Headquarter recommends Best Practices
within our organization and organizes
Exchange Meetings
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Internal | PA-CF/DBE | 4/17/2013 | © Bosch Packaging Systems AG 2013. All rights reserved, also regarding any disposal, exploitation, reproduction, editing,
distribution, as well as in the event of applications for industrial property rights.
Process Improvements in a Complex Environment
Packaging Technology
Common Vision: “Ideal Value Stream” for Make & Assemble to order
Iterations with the
customer for clear order
Concept EngineeringMechanical, Electrical,
Software
(Multi-) Project Management for Takt
Configuration Software
programIntegration
test
• Make optimal
use of
bottlenecks
• Increase capacity at
bottleneck when required
Delivered
as promised
Takt Demand
Clear Order
Sales for Clear Order
• Customer requirements and
order risks are defined, analyzed,
and clearly understood
• The delivery date has been
reviewed, confirmed, and meets
the needs of the customer and
our organization
• Clear order provides proper details
for correct engineering and
construction in a flow
environment
• The order is
understood and
frozen with the
customer
• Eliminate resource bottlenecks
through focused multi-project
management
• Workload is staggered to reduced
need for multitasking
• Key measures for department are
subordinate to the value stream
Hardware and Software for
Takt• Electrical components are delivered
and assembled in takt
• Integration of software occurs
in takt
• Processes and simulation insures
quality
• Mechanical and electrical tie-in through
simultaneous engineering
Supply for Takt• Material is delivered
according to takt
• Deliveries with no
interruptions or failures
throughout the supply chain
• Suppliers are chosen and
developed according to lean
principles
Assembly for Takt• Assembly without interruptions and in takt
• Assembly content is clearly defined
and organized based on takt
• All assembly processes organized based on takt
• Deliveries of components and
assemblies are based on takt
• The right parts at the right place
Design for Takt
• Designed to enable assembly in
modules for takt
• Electrical hardware and software
associates involved immediately
• Work content and duration is
defined according to takt
• The gate process and PA
engineering tools provide robust
and reliable designs
• Standardization and
modularization
reduce complexity
ConfigurationMechanical,
Electrical, Software
Team Takt planningLogistics, Project
Management, Assembly
Modification
Modification
Modification
Cut Throughput Time by 50%!
>and a common goal:
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Internal | PA-CF/DBE | 4/17/2013 | © Bosch Packaging Systems AG 2013. All rights reserved, also regarding any disposal, exploitation, reproduction, editing,
distribution, as well as in the event of applications for industrial property rights.
Process Improvements in a Complex Environment
Packaging Technology
Common Vision: “Ideal Value Stream” for Engineer to order
(Multi-) Project Management for Takt • Eliminate resource bottlenecks
through focused multi-project
management
Design
Specification
Module
SpecificationSoftware
programModule
test
Integration
test
System
test
• Make optimal use of
bottlenecks
• Increase capacity
at bottleneck if
necessary
• Workload is staggered to
reduce multitasking
Delivered
as promised
Takt Demand
Detail Engineering
Takt 1
Detail Engineering
Takt 2
Detail Engineering
Takt 3
Clear Order
Sales for Clear Order• Customer requirements and
order risks are defined, analyzed,
and clearly understood
• The delivery date has been reviewed,
confirmed, and meets the needs of
the customer and our organization
• Clear order provides proper
details for correct engineering
and construction in a flow
environment
• The order is
understood
and frozen
together with
the customer
Team acquisition
Logistics,
Mechanical,
Electrical, Software
• Department KPIs are subordinated
to value stream KPIs
Design for Takt• Designed to enable assembly in
modules for takt
• Electrical hardware and software
associates involved immediately
• Work content and duration is
defined according to takt
• The gate process and PA engineering
tools provide robust and reliable designs
• Standardization and modularization
reduce complexity
Supply for Takt• Material is delivered
according to takt
• Deliveries with no
interruptions or failures
throughout the supply chain
• Suppliers are chosen and
developed according to lean
principles
Assembly for Takt• Assembly without interruptions and in takt
• Assembly content is clearly defined
and organized based on takt
• All assembly processes organized based on takt
• Deliveries of components and assemblies are
based on takt
• The right parts at the right place
Iterations with the
customer for clear order
Concept EngineeringMechanical, Electrical,
Software
Team Takt PlanningLogistics, Purchasing,
Assembly, Mechanical, Electrical,
Software, Project Management
Hardware and Software for Takt• Electrical components are delivered and
assembled in takt
• Integration of software in takt
• Processes and simulation insure quality
• Mechanical and electrical tie-in through
simultaneous engineering
Cut Throughput Time by 50%!
>and a common goal:
2.Harbour
Master
4. Pull &
Consign-
ment
5.
CCPM
1. General
Exchange
3.Flow
Assembly
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Internal | PA-CF/DBE | 4/17/2013 | © Bosch Packaging Systems AG 2013. All rights reserved, also regarding any disposal, exploitation, reproduction, editing,
distribution, as well as in the event of applications for industrial property rights.
Process Improvements in a Complex Environment
Packaging Technology
Exchange of Best Practices
USA Netherlands Switzerland India
2 – 3 times a year exchange meetings for Lean Coordinators and Top Management
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Process Improvements in a Complex Environment
Packaging Technology
MTO/ETO: Harbour Master Principle
3 h
3 h
3 h
1 h
2 h
3 h
+ +1.)
2.)
3.)
Old: New („Harbor Master Principle“):
Theory
Implementation
Mapping current assembly
sequence
(~7 weeks)
Defining future assembly
sequence
(3.5 weeks)
9h loss 6h loss
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Internal | PA-CF/DBE | 4/17/2013 | © Bosch Packaging Systems AG 2013. All rights reserved, also regarding any disposal, exploitation, reproduction, editing,
distribution, as well as in the event of applications for industrial property rights.
Process Improvements in a Complex Environment
Packaging Technology
MTO/ATO: Flow Assembly
Theory
Value Stream Mapping
0
2
4
6
8
10
12
Station 1 Station 2 Station 3 Station 4 Station 5 Station 6
current concept Takt
0
2
4
6
8
10
12
Station 1 Station 2
new concept Takt
Value Stream Design Line Balancing Layout Creation
Implementation
Direct Implementation within 1 week Status today
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Internal | PA-CF/DBE | 4/17/2013 | © Bosch Packaging Systems AG 2013. All rights reserved, also regarding any disposal, exploitation, reproduction, editing,
distribution, as well as in the event of applications for industrial property rights.
Process Improvements in a Complex Environment
Packaging Technology
MTO/ETO: Harbor Master Principle Scheduled day (takt)
Completed
task (green)
Mechanical
task (orange)
Electrical
task (yellow)
Order target
Daily updates
� Potential for drastic Throughput Time Reduction
� Standard Work is established in complex environment as base for further improvement
� On average 20% reduction of assembly hours
Preconditions: Open mindset, good parts availability
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distribution, as well as in the event of applications for industrial property rights.
Process Improvements in a Complex Environment
Packaging Technology
ATO: Pull Steering & Consignment Stock
Theory
Implementation
� 1st Kanban Loop between assembly and internal Manufacturing for machined parts
� 2nd Kanban Loop to stock area for catalogue parts
� 3rd Kanban Loop to Module Supplier in Eastern Europe
� Consignment stock for modules and machined parts (red bins)
Preconditions: Design is frozen, fast lane for format parts established, well trained module suppliers
� Savings in material handling & throughput time
� Stock level transparent and can be steered via amount of Kanban cards
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Internal | PA-CF/DBE | 4/17/2013 | © Bosch Packaging Systems AG 2013. All rights reserved, also regarding any disposal, exploitation, reproduction, editing,
distribution, as well as in the event of applications for industrial property rights.
Process Improvements in a Complex Environment
Packaging Technology
ETO: Critical Chain Project Management (CCPM)
� Basis: Theory of Constraints (TOC) by E. Goldratt (“The Goal”)
� Idea: Control systems with different processes using the bottleneck
� Bottleneck specifies overall system performance and must therefore be optimally controlled and
utilized (1 day lost at the bottleneck is a day lost for the whole system)
� Non-bottleneck areas need to have excess capacity!
� CCPM is the application of TOC in a multi-project environment
� Core Approaches: Buffer Management, Staggering Projects, Priorization
Preconditions:
Orders Projects
Sales20 orders/month
Design10 orders/month
Procurement15 orders/month
Assembly13 orders/month
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Internal | PA-CF/DBE | 4/17/2013 | © Bosch Packaging Systems AG 2013. All rights reserved, also regarding any disposal, exploitation, reproduction, editing,
distribution, as well as in the event of applications for industrial property rights.
Process Improvements in a Complex Environment
Packaging Technology
ETO: Critical Chain Project Management
Staggering Buffer Management Priorization
� Avoid Multi-Tasking at Bottleneck
Old Approach
New Approach
� From individual task buffers to one
common project buffer
� Since associates want to be reliable and
because estimations are turned into fixed due
dates they plan in an implicit buffer for their
tasks!
Which project do you prioritze?
� Project priorization
based on buffer
consumption
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Internal | PA-CF/DBE | 4/17/2013 | © Bosch Packaging Systems AG 2013. All rights reserved, also regarding any disposal, exploitation, reproduction, editing,
distribution, as well as in the event of applications for industrial property rights.
Process Improvements in a Complex Environment
Packaging Technology
Any Questions
Thank you for your attention!
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