promodel generis - modeling accelerates lean

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1 Generis – 2015 American Manufacturing Summit Bruce Gladwin, ProModel Corporation [email protected]

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Generis – 2015 American Manufacturing Summit Bruce Gladwin, ProModel Corporation

[email protected]

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Introductions: Who, What & Why

Evolution of (Lean) Process Analytics

Simulation-based “Living VSMs” ◦ Understanding the “Physics of the Process”

The Virtual Kaizen: your insurance policy

Introducing Modeling & Sustaining the Gain

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Bruce Gladwin – fellow pilgrim on the Lean journey

28 years in process analysis and improvement ◦ Hughes Aircraft – Industrial Engineer Role

◦ GE Global Research – Internal PI Consultant

◦ GE Power Systems – Six Sigma Black Belt

ProModel Corporation – Orem, Utah ◦ Simulation Trainer, Consultant & Project Manager

◦ Product Manager, Process Simulation Tool

◦ Currently VP, Modeling Services Team

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What? ◦ How modeling tools, specifically discrete-event simulation,

can improve & accelerate your Lean journey

Why? ◦ “The times they are a changin” – Bob Dylan

◦ Early modeling tools were not for “the faint of heart”

◦ Advances in simulation technology have put this valuable

technology within reach of more and more Lean practitioners

Many tools today are “fill in the blank”, no programming required!

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Learning to See – Lean Enterprise Institute

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Learning to See: © 1998 LEI, Inc., pp. 32-33

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Learning to See: © 1998 LEI, Inc., pp. 78-79

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Value Stream Map ◦ Static model that describes

the states of current and/or future processes

◦ Tells what is happening in the process now and what the process could be later

◦ Typically reports on lead time and value added time

◦ Requires general information regarding material arrivals, operation times, labor and equipment availability. e.g. average time = 15 sec

Process Simulation ◦ Dynamic model that predicts the

behavior of current and/or future processes

◦ Tells why a process behaves the way it does or how it could behave in the future

◦ Reports on throughput, inventory, lead times, VA, NVA and resource utilization

◦ Requires specific information about material arrivals, batch constraints, operation times, labor and equipment uptime & availability, transportation methods and times, and any other capacity constraints.

◦ e.g. Time = T(5,10,25) sec

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Non-functioning Recirculation Loop for empty Tub carriers

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Repairing the Recirculation Loop allowed more WIP which was key to fixing problem

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Throughput Up 37% !!

WIP also Up 37% !!

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Interdependencies

Variation

SIMULATE

Use Simulation When You Cannot Ignore Variation and Interdependencies

Static Tools

SPREADSHEET ANALYSIS

MONTE-CARLO SIMULATION (Crystal Ball)

OPTIMIZATION ALGORITHMS (LP, MIP)

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Using “Averages” can be dangerous.

How much Risk can

you afford to take?

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Trying to optimize a

complex mfg system

is like trying to solve

the Rubic’s cube.

Simulation can

help understand

the trade-offs!!

Maximize Throughput

Reduce Cycle Time

Reduce Inventory

Minimize CapEx

Interdependencies

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Exercise 1 …

from Process

Simulator Basics

Training Course

Activity

Worker

Work Unit

(Exit)

5 minute

Process Time

100% Resource

Availability

Deterministic

Example

Activity 2

Worker 2

Work Unit 2

(Exit)

U(5,1) minute

Process Time

100% Resource

Availability

Stochastic

Example

Activity 3

Worker 3

Work Unit 3

(Exit)

U(4,1) minute

Process Time

80% Resource

Availability

Stochastic

Example with

Uncertainty

Activity 4

Worker 4

Work Unit 4

(Exit)

U(4,1) minute

Process Time

80% Resource

Availability

Assembly Opn

Stochastic

Example with

Uncertainty and

InterdependencyActivity 4A

Worker 4A

Work Unit 4A

BA

C D

Arrival Rate = 1 unit every 5 minutes

Identical for every arrival stream

No variation

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Results Are

Striking!

40 hr comparison of System A to System D Throughput: 4.6% Avg Queue: 14x Avg Cycle: 15x

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A Virtual Kaizen is simply using simulation first to

better understand the “Physics of the Process”…

Then design the improved process, to produce the

desired outputs, within expect levels of variation…

All in a risk free environment ◦ No interruptions to the existing line

◦ No need to make physical rearrangements (yet)

◦ Ability to ask “What if…?”

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Founded in 1975 by former Westinghouse engineers

Ownership: privately held by founders

Location: Pittsburgh area

Employees: 150 total (50 salary, 100 hourly)

Products: ◦ Mechanical Switches for Electric Utility Grids

◦ Automatic Distribution Motor Operators (ADMO)

Allows remote control of switches by utility personnel

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Vertical Switch

V2-C (copper) Center Break Switch

CB-A (aluminum)

6’

6’

Switches = 50% Revenues

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Privately held, debt-free, profitable business with little competition from low cost countries (for now).

Capacity constrained. The market would buy every additional unit that they could produce.

Each additional unit sold would contribute $5k-$10k to their bottom line.

Want to maximize 1st shift capacity before adding additional 2nd shift operations.

Considering 30,000 sf expansion to their existing plant, at a cost of about $1M.

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Eliminate or Reduce the Risk through a “Virtual Kaizen” using Simulation Technology.

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Value stream mapping

Work standardization

Point of use storage

Single Piece Flow

Visual management (Subassembly Feeder Lines)

Kanban (pull) production (Subassembly Area)

Setup reduction (Fabrication Area)

Total productive maintenance (Fabrication Area)

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Simulation proved to be an accurate tool for modeling

the current state Vertical Switch Assembly process

A Future-State model using Lean Production concepts

proved to be far more efficient ◦ 20% improvement in product throughput!

◦ 67% reduction in average unit cycle time!

◦ 50% reduction in floor space requirements!

◦ Elimination of need for 2nd shift!

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Identify the best opportunities ◦ Good ROI potential

Every additional unit produced can be sold

◦ (Fairly) Low Risk

Use a Sensei with years of modeling experience

Involve all stakeholders, especially line operators whenever possible

Be patient and allow your team time to develop modeling skillset. Make modeling a part of every major process change.

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Update the models regularly so they are always

available to predict the future ◦ More & better data results in better decisions

Link to real-time data sources ◦ More & better data results in more accurate results

◦ Strategic Analysis becomes Tactical Analysis

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Generis – 2015 American Manufacturing Summit Bruce Gladwin, ProModel Corporation

[email protected]