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SimLean: a reference framework for embedding simulation in lean projects JIA, Yan Available from Sheffield Hallam University Research Archive (SHURA) at: http://shura.shu.ac.uk/17881/ This document is the author deposited version. You are advised to consult the publisher's version if you wish to cite from it. Published version JIA, Yan (2010). SimLean: a reference framework for embedding simulation in lean projects. Doctoral, Sheffield Hallam University. Repository use policy Copyright © and Moral Rights for the papers on this site are retained by the individual authors and/or other copyright owners. Users may download and/or print one copy of any article(s) in SHURA to facilitate their private study or for non- commercial research. You may not engage in further distribution of the material or use it for any profit-making activities or any commercial gain. Sheffield Hallam University Research Archive http://shura.shu.ac.uk

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Page 1: SimLean: a reference framework for embedding simulation in lean … · 2018-01-07 · SimLean: A Reference Framework for Embedding Simulation in Lean Projects Yan Jia A thesis submitted

SimLean: a reference framework for embedding simulation in lean projects

JIA, Yan

Available from Sheffield Hallam University Research Archive (SHURA) at:

http://shura.shu.ac.uk/17881/

This document is the author deposited version. You are advised to consult the publisher's version if you wish to cite from it.

Published version

JIA, Yan (2010). SimLean: a reference framework for embedding simulation in lean projects. Doctoral, Sheffield Hallam University.

Repository use policy

Copyright © and Moral Rights for the papers on this site are retained by the individual authors and/or other copyright owners. Users may download and/or print one copy of any article(s) in SHURA to facilitate their private study or for non-commercial research. You may not engage in further distribution of the material or use it for any profit-making activities or any commercial gain.

Sheffield Hallam University Research Archivehttp://shura.shu.ac.uk

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Sheffield Hallam University Learning and information Services

Adsetts Centre, City Campus Sheffield S1 1WD

1 0 1 9 6 8 1 4 7 0

Sheffield Halfam University I Mwmng ^od !1 Services ■ Adsetts * Centre O ty Campus :] Sheffield S1 1WB

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Sim Lean: A R eference Fram ew ork fo r

Em bedding S im ulation in Lean Pro jects

Yan Jia

A thesis submitted in partial fulfilment of the requirements of

Sheffield Hallam University

for the degree of Doctor of Philosophy

September 2010

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A B S T R A C T

The intense global competition in today’s market is forcing organisations to looking for good process improvement techniques constantly. Currently lean methodology is one of the most popular programs for process improvement. However, the static lean tools have caused problems in lean implementation.

The main aim of the research work is to develop a reference framework about embedding simulation in lean projects. By embedding simulation method in lean projects, deficiencies of static lean tools such as their inability to assess the effects of variation, to validate effects of proposed changes before implementation, to identify other possible improvements or to capture the interactions between system components (Standridge and Marvel, 2006) might be overcome.

A combination of research methodology approaches is adopted. This includes conducting literature review, observing companies’ practices and interviewing experts, and adopting several case studies.

The focal points of the reference framework are designed in the pre­implementation stage of lean projects. Referring to the detailed implementation of the framework, a new modelling environment is proposed. This new environment will use customised VSM templates built in Microsoft Visio software and in Arena simulation system respectively to achieve the quick modelling for lean projects. The proposed modelling environment is validated through five case studies.

The main features of the proposed framework are summarized as systematic, generic and the ability to overcome major challenges. A major contribution of the developed system is its ability to simplify, facilitate and standardize simulation modelling in lean projects. It dramatically reduces building blocks in the model, saves model constructing time and eliminates errors in logic design; the simulation models provides better results than static VSM; meanwhile, the interface between Arena and Visio greatly reduces users’ fear for complex simulation modelling environment, and increases the ease of use.

II

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A B R E V IA T IO N S

5S Sort, Set in order, Shine, Standardize and Sustain

ANOVA Analysis of Variance

C/O Time Changeover Time

DES Discrete Event Simulation

DMAIC Design-Measure-Analyze-lmprove-Control

DOE Design of Experiments

FIFO First in First Out

FMEA Failure Modes and Effects Analysis

JIT Just In Time

NVA Non Value Added

PDCA Plan-Do-Check-Act

PCE Process Cycle Efficiency

PLT Production Lead Time

PM Preventative Maintenance

PnP Plug and Play

QFD Quality Function Deployment

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SMED Single Minute Exchange of Dies

SPG Statistical Process Control and Control Charts

SS Six Sigma

TPM Total Productive Maintenance

TPS Toyota Production System

WIP Work In Progress

VA/T Value-Added Time

VOC Voice of Customer

VSM Value Stream Mapping

IV

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C O N T E N T S

ABSTRACT.. ............. IIABREVIATIONS ........ IllCONTENTS .............. ..VLIST OF FIGURES ...... VIIILIST OF TABLES ....... IX1 INTRODUCTION ............................... 1

1.1 BACKGROUND ........ 11.2 MOTIVATION ..... 21.3 RESEARCH AIM AND OBJECTIVES ............ 41.4 THESIS STRUCTURE ........ 5

2 LITERATURE REVIEW................. 72.1 LEAN METHODOLOGY.............................................. 7

2.1.1 BRIEF HISTORY OF LEAN .......................... 82.1.2 BASIC PRINCIPLES OF LE A N ........... 102.1.3 THE EIGHT WASTES OF LE AN .......... ,.............................122.1.4 LEAN IMPLEMENTATION ROADMAP.... ............................. 16

2.2 LEAN MANUFACTURING TO O LS ......... 182.2.1 5S ......... ..192.2.2 VISUAL CONTROLS............. 192.2.3 STREAMLINED LAYOUT ...... 212.2.4 STANDARD W ORK.. ................................................... .....212.2.5 BATCH-SIZE REDUCTION ........................................ 212.2.6 TEAM S .... 212.2.7 QUALITY AT THE SOURCE...................... 212.2.8 POINT-OF-USE STORAGE.................... 212.2.9 QUICK CHANGEOVER........................ 222.2.10 PULL / KANBAN ............. 222.2.11 CELLULAR / FLOW...................................... 222.2.12 TOTAL PRODUCTIVE MAINTENANCE (TPM)................ 222.2.13 OTHER TOOLS..... ............... ..23

2.3 VSM (VALUE STREAM MAPPING) ..... 232.3.1 ADVANTAGES OF VSM........................................,........ 252.3.2 PROCESS MAP FOR VSM (Locher, 2008)............... 26

2.4 SHORTCOMINGS OF LEAN MANUFACTURING TOOLS ...:.. 272.5 SIMULATION APPLICATION IN LEAN PROJECTS .................... 29

2.5.1 SIMULATION CLACIFICATIONS.............. ,...... 292.5.2 DES (DISCRETE EVENT SIMULATION) MODELLING .......302.5.3 STEPS IN A SIMULATION STUDY............................................. 352.5.4 VSM MODELS WITH STANDARD TEMPLATES .......... 412.5.5 VSM MODELS WITH CUSTOMISED TEMPLATE............... 42•2.5.6 ALTERNATIVE APPROACHES FOR MODELLING LEANPROJECTS ........... ...44

2.6 CRITICAL ASSESSMENT OF LITERATURE SURVEY ............... 472.7 SUMMARY ........................... 49

3 RESEARCH METHODOLOGY........................... 50

V

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3.1 RESEARCH QUESTIONS ......... .................. 503.2 DESIGN OF RESEARCH METHODS ...... 513.3 THE SELECTED RESEARCH METHODOLOGY............... ....533.4 RESULTS FROM INTERVIEWS.............................. ........ 58

3.4.1 RESEARCH QUESTIONS VERIFICATION............. 593.4.2 CONCLUSIONS DRAWN FROM INTERVIEWS ........... 67

4 BUILDING THE FRAMEWORK................ ............................................... 704.1 MOTIVATION AND DATA COLLECTION.......................... 704.2 ANALYSIS OF SIMULATION EMBEDMENT ........... 714.3 FRAMEWORK DEVELOPMENT..................... 72

4.3.1 ESTABILISH NEED FOR SIMULATION... ............... .....734.3.2 SET SIMULATION OBJECTIVES......................................... ........ 764.3.3 MANAGEMENT COMMITMENT .......... 774.3.4 SIMULATION TEAM AND TIME SCALE.............. 784.3.5 PRE-IMPLEMENTATION............................ 804.3.6 IMPLEMENTATION.................. 854.3.7 POST IMPLEMENTATION ........... 86

4.4 FEATURES OF THE SIMLEAN FRAMEWORK.................................. 874.4.1 SYSTEMATIC ................ 874.4.2 GENERIC AND HOLISTIC ...... 884.4.3 OVERCOME MAJOR CHALLENGES ...................... 88

5 CUSTOMISED SIMULATION ENVIRONMENT................ 905.1 INTRODUCTION. .................... 905.2 OVERVIEW OF ARENA TEMPLATE DEVELOPER ...... 915.3 THE SYSTEM DEVELOPMENT PROCESS ...... 925.4 DETERMINE TEMPLATEMODULES......................................... ........ 955.5 DESIGN TEMPLATE MODULES .................... 99

5.5.1 SUPPLIER MODULE..................... 1005.5.2 CUSTOMER MODULE................................................ ....1015.5.3 TRUCK MODULE .................. 1015.5.4 SAFETY STOCK MODULE.......................................................1025.5.5 PROCESSVSM MODULE................. .....1035.5.6 INVENTORY MODULE............................................................... 1045.5.7 SUPERMARKET MODULE.............................................. 105

5.6 TEMPLATE MODIFICATION ...................................... 1065.6.1 CUSTOMER MODULE MODIFICATION............. 1075.6.2 INVENTORY MODULE MODIFICATION .... 1085.6.3 SUPERMARKET MODULE MODIFICATION............................. 1095.6.4 PROCESSVSM MODULE MODIFICATION ........................ ..110

5.7 TEMPLATE INTERFACE IN V IS IO ........................ 1115.7.1 ARENA INTERFACE TO VISIO APPLICATIONS (ROCKWELLAUTOMATION, 2005).............. 1125.7.2 PROCESS SIMULATOR INTRODUCTION (ROCKWELLAUTOMATION, 2005)................ 1135.7.3 VISVSM TEMPLATE DEVELOPMENT .......................... ..1145.7.4 MAPPING FILE EDITTING ....... 117

5.8 VERIFY AND VALIDATE SIMVSM TEMPLATE.......................... .....1195.9 SUMMARY.. ...... 119

6 EVALUATION OF THE REFERENCE FRAMEWORK.............. 1216.1 DESIGN OF CASE STUDIES.................. 1226.2 CASE STUDY ONE........................................... 123

V I

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6.2.1 VSM DESCRIPTION.......................... .1236.2.2 THE SIMULATION SCEN E ........... 1246.2.3 RESULTS AND FINDINGS ...................... 127

6.3 CASE STUDY TW O .............................................................1276.3.1 VSM DESCRIPTION ............................................... 1276.3.2 THE SIMULATION SCENE............. 1296.3.3 RESULTS AND FINDINGS .............. 132

6.4 CASE STUDY THREE .............. 1326.4.1 VSM DESCRIPTION................................. ...'.................. 1326.4.2 THE SIMULATION SCEN E .................... 1346.4.3 RESULTS AND FINDINGS............................... 136

6.5 CASE STUDY FO UR ......... 1366.5.1 VSM DESCRIPTION......................................... 1366.5.2 THE SIMULATION SCENE ................. 1386.5.3 RESULTS AND FINDINGS................................... 141

6.6 CASE STUDY F IV E .............. 141' 6.6.1 VSM DESCRIPTION ........................ 141

6.6.2 THE SIMULATION SCENE ........................... 1426.6.3 RESULTS AND FINDINGS.................................................... 145

6.7 KEY OBSERVATIONS... .................. 1457 CONCLUSIONS AND FUTURE W ORK... ...... 149

7.1 RESEARCH OBJECTIVES AND ACHIEVEMENTS ............... 1497.1.1 ACHIEVEMENTS OF THE RESEARCH OBJECTIVES 1507.1.2 DEVELOPPING SIMLEAN FRAMEWORK ........... 1517.1.3 EVALUATION OF THE CUSTOMISED SIMULATION ENVIRONMENT.............. 152

7.2 CONTRIBUTION TO KNOWLEDGE........................ 1527.2.1 NOVELTY IN RESEARCH FINDINGS ............ 1537.2.2 NOVELTY IN CAPABILITY OF SIMLEAN FRAMEWORK........... 1537.2.3 NOVELTY IN CAPABILITY OF THE PROPOSED SYSTEM....... 1547.2.4 SOLUTIONS TO THE IDENTIFIED RESEARCH G APS 1557.2.5 ACCOMPLISHMENT OF THE RESEARCH QUESTIONS 155

7.3 RESEARCH LIMITATIONS.................... 1567.4 FUTURE RESEARCH W ORK.................... 158

REFERENCES..... ................. ........161APPENDIX A: DATA COLLECTION SHEET ....... 170APPENDIX B: DATA COLLECTION SHEET FOR INTERVIEW ........ 171APPENDIX C: DIALOG DESIGN OF SIMVSM TEMPLATE............................174APPENDIX D: VlSVSM TEMPLATE PARAMETERS............... 179APPENDIX E: MAPPING FILE CONTENT.................... 183

V II

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LIST OF FIG URES

Figure 2-1 Structure of Lean Manufacturing Implementation....................... 17Figure 2- 2 Process Map for VSM ... 27Figure 2- 3 Elements of System Modelling with D E S ......... 31Figure 2- 4 The Simulation Procedure.............................. 36Figure 3-1 The Selected Research Methodology .............................. 54Figure 4-1 The Proposed SimLean Framework........................ ..73Figure 4- 2 SimLean Stage One... .... ...:........... 74Figure 4- 3 SimLean Stage Two ................ 76Figure 4- 4 SimLean Stage Three ... 78Figure 4- 5 SimLean Stage Four............... 78Figure 4- 6 SimLean Stage Five.......................... 81Figure 4- 7 Simulation Modelling at Pre-implementation Stage....................... 82Figure 4- 8 SimLean Stage Six .................. 85Figure4 -9 SimLean Stage Seven........... ......................... ..86Figure 5-1 Five Windows for Module Definition ................ 92Figure 5- 2 Modules Development Process............. :................... 94Figure 5- 3 The SimVSM Template ............................ 99Figure 5- 4 Logic Concept of Supplier M odule....................... 100Figure 5- 5 Logic Concept of Customer Module ......... 101Figure 5- 6 Logic Concept of Truck Module................. 101Figure 5- 7 Logic Concept of Safety Stock Module ................ 102Figure 5- 8 Logic Concept of ProcessVSM Module ........ 103Figure 5- 9 Logic Concept of Inventory Module................. ....104Figure 5-10 Logic Concept of Supermarket Module.............................. 105Figure 5-11 Logic Concept of Modified Customer Module .......................107Figure 5 -12 Logic Concept of Modified Inventory M odule ...... 108Figure 5 -13 Logic Concept of Modified Supermarket Module........................ 109Figure 5 -14 Logic Concept o f Modified ProcessVSM M odule ........ 110Figure 5 -15 Arena Software Architecture..................... 113Figure 5 -16 Process Simulation Approach.............................................. .....114Figure 5 -17 VisVSM Template Development ..........................................115Figure 5 -18 Visio Shape Mapping File.......................... 118Figure 6-1 Static VSM of Case Study 1 ........ 123Figure 6- 2 Simulation Scene of Case Study 1 .......... 125Figure 6- 3 Static VSM of Case Study 2 .................. 128Figure 6- 4 Simulation Scene of Case Study 2................... 129Figure 6- 5 Static VSM of Case Study 3 ................. 133Figure 6- 6 Simulation Scene of Case Study 3................. 134Figure 6- 7 Static VSM of Case Study 4 ...................................... 137Figure 6- 8 Simulation Scene of Case Study 4 ....... 138Figure 6- 9 Static VSM of Case Study 5 ............................. 142Figure 6-10 Simulation Scene of Case Study 5 .............. :.... 143

V III

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LIST OF TABLES

Table 2-1 Development Waste Examples ............ 15Table 2- 2 Data Collected for Various DES Elements..................... 31Table 2- 3 Examples of Structural Elements in D E S ................... 32Table 2- 4 Examples of Model Logical Designs.............. 33Table 2- 5 Examples of Model Statistics.............................................. 35Table 3-1 Summary Results of Practitioners' V iews................................... .....63Table 4-1 Simulation Applicability for Lean Problems........................... 75Table 4- 2 Simulation Team Selection ............ 79

• Table 4- 3 System Specification in Six Elements (Kelton, et al. 2004)............. 80Table 5-1 Static VSM Icons in Visio 2007...................... 95Table 5- 2 Determined Modules for SimVSM Tem plate ........................... 97Table 5- 3 Unselected VSM Icons................... 98Table 5- 4 Block Number of Modules in SimVSM Template ........... 99Table 5 -5 Block Number of Modified Modules in SimVSM Tem plate ...... 106Table 5- 6 Custom Property Options.............. 116Table 6-1 Data Comparison of Case Study 1 ....................... 126Table 6- 2 Data Comparison of Case Study 2 .............................. 131Table 6- 3 Data Comparison of Case Study 3 ......................... 135Table 6- 4 Data Comparison of Case Study 4 ..... 140Table 6- 5 Data Comparison of Case Study 5 .......... 144Table 6- 6 Block Savings of Five Case Studies................... 146

IX

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1 IN T R O D U C T IO N

1.1 B A C K G R O U N D

To survive in an ever increasing global and competitive marketplace,

organisations are forging strategic alliances to gain a competitive advantage

over their rivals. Consequently, it is now recognised that process improvement

techniques are very important. Currently, one of the most popular management

programs is lean management. Lean methodology originated at Toyota in

Japan and has been implemented by many major firms world wide. Lean aims

to continuously minimize waste (non-value-added activities) to maximize flow.

The driving force behind the development of lean management was the

elimination of waste, especially in Japan, a country with few natural resources

(Arnheiter and Maleyeff, 2005).

Lean is a necessary but not a sufficient approach to analyzing production

system issues (Standridge and Marvel, 2006). Deficiencies in lean methodology

have caused problems in implementation of process improvement. Some of

these deficiencies are described as following (Standridge and Marvel, 2006):

(1) Variation such as customer demand, machine breakdowns and different

production schedules must be addressed in operating systems. While lean

methods acknowledge the need for inventory due to variation, no methods are

provided for computing how much is needed.

(2) A more thorough analysis of data is required. Since lean procedure only

computes average value of quantities, the results might be inaccurate or even

misleading.

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(3) Component interaction is not considered in lean approach.

(4) No validating methods are included in lean methodology, and without

validation approach, the results obtained from static models are doubtful.

(5) What's more, no tools are included in lean method to identify the best

solution among several future state alternatives.

To sum up, since lean is a deterministic method and it uses only descriptive

value stream maps to model production operations (Standridge and Marvel,

2006), it has limited the development of manufacturing operations, and caused

bottlenecks in further improvement.

1 .2 M O T IV A T IO N

The highlighted market competitiveness that challenging deficiencies or

limitations of lean methodology; has been the major motivating factor for this

research. This research is also valuable for further promoting applications of

lean. *

In order to compensate for the shortcomings of lean methodology, experts in

industry as well as academia scholars are looking for solutions. One possible

way is to embed simulation in lean projects.

Computer simulation is a technique that imitates the operation of a real-world

system as it evolves over time. Process simulation, often used to model

production and business processes in both the manufacturing and service

sectors, is referred to as discrete event simulation (DES) (El-Haik and Al-Aomar,

2006). This thesis only deals with discrete, dynamic and stochastic simulation

2

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models. Such models have collectively been termed as discrete event dynamic

models (DEDM) or discrete event simulation (DES) in the literature.

Simulation modelling as an industrial engineering tool for system design and

improvement has undergone tremendous development in the past decade. This

can be pictured through the growing capabilities of simulation software tools

and the application of simulation solutions to a variety of real-world problems in

different business arenas (El-Haik and Al-Aomar, 2006). Ferrin, Miller and

Muthler (2005) explained that "simulation is complimentary with Lean

methodology. Simulation is a well designed capability that brings the statistically

robust solution and associated confidence to meet the customers' expectations

that a process will deliver at Lean Sigma quality levels." Crosslin (1995) stated

that "virtually all of the Fortune 50, a majority of the Fortune 1000 and military

planning units of all technologically advanced countries, use simulation rather

than subjective notions to make decisions about key manufacturing and

logistics process decisions. There are no good reasons why simulation should

not be used to aid decisions about key business processes. On the contrary,

there are numerous good reasons why simulation should be used for BPR."

“Simulation can be considered a worthwhile tool whenever we consider

changes where experience tells us that the outcome is in doubt or, that there

would be a considerable expense due to failure. Simulation can help you

mitigate your risk potential.” (http://leanandagile-mhc.com/Simulate.htm). A

number of case studies also show the great success of their combination (Bayle,

et al. 2001) (Abbas, et al. 2006) (Adams, et al. 1999) (Wang, et al. 2005)

(Bodner and Rouse, 2007) (Huang and Liu, 2005) (Lian and Van, 2007).

3

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However, all the case studies available just make use of simulation in one or

several stages of the individual steps of lean methodology, while does not

explain systematically how simulation can be embedded into the lean projects,

or illustrate how to build a holistic framework or structure to embed simulation

into lean projects. The lack of integrity of the reference framework will in turn

greatly influent simulation application in lean projects. McClellan (2004) stated

that making an accurate simulation model is very difficult because of the

tremendous amount of factors in a normal manufacturing system.

While the use of modelling and simulation in manufacturing is steadily gaining

acceptance for certain applications (such as capacity planning), there is still a

long way to go before it is commonly applied for a multitude of other

applications (Rose 2004). Currently, the combination of simulation and lean has

not yet been widely adopted by industry, fear of their complexity, and

effectiveness. Enterprises do not know how much revenue it will cost and what

benefits can be brought by their integrity; such uncertainty has increased

concerns of the enterprises to adopt lean and simulation.

1 .3 R E S E A R C H A IM A N D O B J E C T IV E S

Research aim is to develop a reference framework which enables embedding of

simulation in lean projects.

Research objectives are listed below:

1. Conduct Literature Survey;

2. Develop an integrated framework to capture the interaction between lean

and simulation;

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3. Establish role of simulation within the above framework;

4. Develop the reference framework to embed simulation;

5. Validate the reference framework.

A software toolkit is proposed, which integrates simulation and lean, and

accomplishes being a very comprehensive optimization framework about

embedding simulation into Lean projects.

1 .4 T H E S IS S T R U C T U R E

This research thesis is composed of seven chapters. Chapter one describes

research background, motivation, aim and objectives and thesis structure.

Chapter two provides literature review and critical assessment of related work in

lean manufacturing and DES (discrete event simulation) methodology, and

summarizes the research gap.

Chapter three describes the research methodology adopted for the research

study.

Chapter four presents the overall framework of embedding simulation in lean

projects. The proposed SimLean framework contains seven stages, which cover

the whole project cycle from "qualify need for simulation" to "post

implementation".

Chapter five explains the development of a customised simulation environment,

which has simplified, facilitated and standardized model building process for

lean projects.

5

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Chapter six presents the evaluation process of the proposed system. Through

five case studies discussed in Chapter six, the customised simulation

environment is validated and its limitations are pointed out.

Chapter seven contains discussions and conclusions of the overall research

work. It also highlights the limitations of the research work and recommended

future work.

6

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2 L IT E R A T U R E R E V IE W

In previous chapter the research aim and objectives have been explained. In

this chapter, the literature review has been presented and the literary

contributions towards lean manufacturing and simulation integration have been

provided. The main aim of this chapter is to examine the academic literature

review on the subject of lean manufacturing, DES (discrete event simulation)

and their combination, in order to discover the research gaps and collect

information for research design.

In order to achieve the above aim, this chapter has been structured as follows:

Section 2.1 introduces the history and principles of lean manufacturing; Section

2.2 outlines the available tools used in lean manufacturing; VSM (value stream

mapping) is described in Section 2.3 because of its unique capability to

visualise a whole and complex manufacturing system and represent the

materials and information flow within a facility (Rother and Shook, 1999) and

(Tapping, et al. 2002); Shortcomings of lean manufacturing tools are stated in

Section 2.4; In Section 2.5, simulation applications in lean projects are

described; Section 2.6 presents and discusses the critical assessment of the

overall literature review; At last, Section 2.7 provides conclusion to the literature

review exercise.

2.1 L E A N M E T H O D O L O G Y

In the last ten years or so, a new term "lean" has entered our vocabulary.

Executives and decision makers, especially in senior management, quality,

operations, engineering, and human resources have been hearing of lean in a

context other than dieting (Alukal and Manos, 2006).

7

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Lean is a manufacturing or management philosophy that shortens the lead time

between a customer order and the shipment of the parts or services ordered

through the elimination of all forms of waste. Lean helps firms in the reduction of

costs, cycle times, and non-value-added activities, thus resulting in a more

competitive, agile, and market-responsive company (Aliikal and Manos, 2006).

There are many definitions of lean. For instance, here is one that is used by the

Manufacturing Extension Partnership of National Institute of standards and

Technology, a part of the U.S. Department of Commerce: "A systematic

approach in identifying and eliminating waste (non-value-added activities)

through continuous improvement by flowing the product at the pull of the

customer in pursuit of perfection." Lean focuses on value-added expenditure of

resources from the customers' viewpoint. Another way of putting it would be to

give the customers: what they want; when they want it; where they want it; at a

competitive price; in the quantities and varieties they want, but always of

expected quality (Alukal and Manos, 2006).

A planned, systematic implementation of lean leads to improved quality, better

cash flow, increased sales, greater productivity and throughput, improved

morale, and higher profits. Once started, lean is a never-ending journey of ever-

improving processes, services, and products. Many of the concepts in total

quality management and team-based continuous improvement are also

common to the implementation of lean strategies (Alukal and Manos, 2006).

2.1.1 B RIEF H ISTO R Y OF LEAN

The concept of lean management can be traced to the Toyota production

system (TPS), a manufacturing philosophy pioneered by the Japanese

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engineers Taiichi Ohno and Shigeo Shingo (Inman, 1999). However, most of

the lean concepts are not new. Many of them were being practiced at Ford

Motor Company during the 1920s or are familiar to most industrial engineers

(Alukal and Manos, 2006). Ohno greatly admired and studied Ford because of

his accomplishments and overall reduction of waste at early Ford assembly

plants (Hopp and Spearman, 2001). The TPS is also credited with being the

birthplace of just-in-time (JIT) production method, a key element of lean

production, and for this reason the TPS remains a model of excellence for

advocates of lean management (Arnheiter and Maleyeff, 2005).

A few years after World War II, Eiji Toyoda of Japan's Toyota Motor Company

visited the American car manufacturers to learn from them and to transplant U.S.

automobile production practices to the Toyota plants. With the eventual

assistance of Taiichi Ohno and Shigeo Shingo, the Toyota Motor Company

introduced and continuously refined a system of manufacturing whose goal was

the reduction or elimination of non-value-added tasks (activities for which the

customer was not willing to pay). The concepts and techniques that go into this

system are now known as Toyota Production System (TPS), and were recently

reintroduced and popularized by James Womack's group in the United States

under the umbrella of lean manufacturing (Alukal and Manos, 2006).

Lean concepts are applicable beyond the shop floor. Companies have realized

great benefit by implementing lean techniques in the office functions of

manufacturing firms, as well as in purely service firms such as banks, hospitals,

and restaurants. Lean manufacturing in this context is known as lean enterprise

(Alukal and Manos, 2006).

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2 .1 .2 B ASIC PR IN C IPLES OF LEAN

Among the several quality management concepts that have been developed,

the lean concept, as in lean manufacturing, lean production, et al. is one of the

most wide-spread and successful attempts. Briefly, lean is about controlling the

resources in accordance with the customers' needs and to reduce unnecessary

waste, including the waste of time (Andersson, eta l. 2006). •

Lean principles are fundamentally customer value driven, which makes them

appropriate for many manufacturing and distribution situations. Five basic

principles of lean manufacturing are generally acknowledged (Womack and

Jones, 1996) (Curry and Mclvor, 2001):

1. Understanding customer value. Only what the customers perceive as

value is important.

2. Value stream analysis. Having understood the value for the customers,

the next step is to analyse the business processes to determine which ones

actually add value. If an action does not add value, it should be modified or

eliminated from the process.

3. Flow. Focus on organising a continuous flow through the production or

supply chain rather than moving commodities in large batches.

4. Pull. Demand chain management prevents from producing commodities

to stock, i.e. customer demand pulls finished products through the system. No

work is carried out unless the result of it is required downstream.

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5. Perfection. The elimination of non-value-adding elements (waste) is a

process of continuous improvement. There is no end to reduce time, cost,

space, mistakes, and effort.

Lean is especially important today as a winning strategy. Some key reasons are

listed below (Alukal and Manos, 2006):

1) To compete effectively in today's global economy

2) Customer pressure for price reductions

3) Fast-paced technological changes

4) Continued focus by the marketplace on quality, cost, and on-time delivery

5) Quality standards such as TS 16949:2002 and ISO 9001:2000

6) Original equipment manufacturers (OEM) holding on to their core

competencies and outsourcing the rest

7) Higher and higher expectations from customers

8) The need for standardized processes so as to consistently get expected

results

To compete successfully in today's economy we need to be at least as good as

any of our global competitors, if not better. This goes not only for quality, but

also for costs and cycle times (lead time, processing time, delivery time, setup

time, response time, and so on). Lean emphasizes teamwork, continuous

training and learning, production to demand (pull), mass customization and

batch-size reduction, cellular flow, quick changeover, total productive

maintenance, and so on. Not surprisingly, lean implementation utilizes

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continuous improvement approaches that are both incremental and

breakthrough (Alukal and Manos, 2006).

2 .1 .3 T H E E IG H T W A S T E S O F L E A N

Waste of resources has direct impact on our costs, quality, and delivery.

•Conversely, the elimination of wastes results in higher customer satisfaction,

profitability, throughput, and efficiency. Excess inventory, unnecessary

movement, untapped human potential, unplanned downtime, and suboptimal

changeover time are all symptoms of waste (Alukal and Manos, 2006).

Taiichi Ohno, a former executive at Toyota, identified seven categories of waste.

Many in the Lean community consider there to be an eighth category --

Underutilized People -- that can have significant importance to the development

process. The eight categories of waste are explained as follows (Locher, 2008):

1) Overproduction. In overproduction, organizations product more information

or provide greater service than is needed, sooner than is needed either by

the next process step or by the end user or customer. The impetus behind

overproduction is the impulse to "stay ahead." Although this reasoning is

commendable, it creates other problems and other wastes. For example,

information is more subject to changes and can even become out-of-date if it

is processed too early.

2) Excess Inventory. Excess inventory is more than the absolute minimum

required to maintain uninterrupted flow of information or service. People will

often "batch" development activities. Most often they do so because they

believe that it is more efficient. Sometimes there are real reasons to batch

development activities, such as system limitation. The root causes for all

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such practices need to be addressed in order to allow for more flexible

processing.

3) Defective product or service. This type of waste refers to the discovery and

correction of information or a service that has been processed incorrectly or

is missing altogether. The correction and clarification of information as it

flows through a company can require tremendous effort and cost. To counter

this unnecessary expenditure of resources and effort, organizations must

address the root causes for the lack of complete and accurate information.

Information or service "defects” simply cannot be allowed to continue and

become the norm in any company.

4) Over processing (or Non-Value-Added - NVA). NVA occurs when teams

expend extra effort beyond what is actually needed by the customer. Extra

steps or entire processes within the development process fall into this

category, including many of the administrative activities performed in support

of the development process. While it may not be possible to eliminate them

all, at the very least, the amount of time and effort to perform them can be

reduced.

5) Waiting. Information or services can wait for numerous reasons, thereby

impeding flow. To reduce the likelihood of this type of waste, organizations

must focus on the necessary information itself or on the customer, not on the

people performing the work. People can generally keep busy at all times.

However, if a customer has to wait beyond an acceptable time frame,

customer satisfaction will decline. If, for whatever reason, information must

wait, other problems will arise, such as declines in customer service or a rise

in quality-related issues.

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6) Excess Motion. Although organizations rarely consider this category when

looking for ways to trim waste, excess motion by employees in the course of

their work can, in fact, be a significant waste category. For example, if

employees need to consistently travel to different parts of thp. huilding_in.

order to reach necessary supplies, they are likely to be less efficient and

less productive than they would be if the supplies were within easy reach.

7) Transportation. Transportation refers to the movement of information or a

service, either manually or electronically. Although it requires little physical

effort, even the electronic transportation of information can be considered

wasteful. This issue with transportation waste is not solely the time required,

but the other problems that arise with each transfer. For example, the

potentia' for information to end up in another queue waiting to be processed

increases with each transfer, as does the potential to lose information.

Quality tends to decline with each transfer of information.

8) Underutilized People. In this instance, staff members are not using their full

skills and abilities. People are often given very limited roles and

responsibilities when, in reality, they can assume much more if the process

has been designed effectively. ,

Although most people are now familiar with these waste terms, they may still

have difficulty in recognizing them in the development process, and some have

contended that the terms do not apply to the development process at all.

Regardless of whether an organization develops a product, a process, or a

service, these terms are, in fact, all applicable. Going Lean requires that people

expand their exiting, sometimes narrow, definitions for these now-common

terms (Locher, 2008).

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To assist the Lean practitioner in developing "eye for waste," Table 2-1 provides

selected examples for each waste category. It is important to note that the eight

wastes are fundamentally interrelated and may overlap; in other words, the

examples below may fit into more than one category (AlukaLand Manos, 2006)^-

T a b le 2 -1 D e v e lo p m e n t W a s te E xam p les

Waste Types Explanations

Overproduction Completing design elements that are not needed for some

time; Including features that the customer does not see as a

value (could also be included in nonvalue-added or over

processing waste); "Over-engineering".

Waiting Approvals from superiors; A lack of available capacity; Input

from customers; System response time; Completion of

other design elements.

Transportation E-mailing information.

Multiple hand-offs; Report distribution; Circulating

paperwork for signatures.

Nonvalue-Added

Processing

(or Over

processing)

Re-entering data; Extra copies; Unnecessary or excessive

reports or paperwork; Redesigning something that already

has been designed (i.e., reinventing the wheel); Most

engineering support services.

Excess Inventory Filled in-boxes (electronic or paper); Batch processing

transactions; "Large" design releases; Retaining documents

beyond what is required.

Defects

(or Correction)

Design errors; Service failures; Engineering change orders

due to errors; Not clearly understanding customer needs;

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Waste Types Explanations

Missing or incomplete information.

Excess Motion Going to / from printer, fax machine, central filing, and

m p p f i n n c - Travel ------------------------------------------------

Underutilized

People

Limited authority and responsibility for basic tasks;

Management "command and control"; Not sufficiently

sharing knowledge; Not involving suppliers early in the

development process; Not involving manufacturing early in

the development process.

2 .1 .4 L E A N IM P L E M E N T A T IO N R O A D M A P

Knill (1999) states that five initiatives are necessary for a successful

implementation of Lean Manufacturing:

1. Supplier programs;

2. Continuous improvement;

3. Flexibility;

4. Eliminate waste;

5. Zero defects.

LM (Lean Manufacturing) is the umbrella over these concepts, and while many

companies often grasp a couple of these concepts, the full potential of a

company cannot be reached without implementing all of these initiatives.

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^ S ta r t ^

F ig u re 2 -1 S tru c tu re o f L ean M a n u fa c tu r in g Im p le m e n ta tio n

Achanga (2007) proposed a framework for assessing the impacts of

implementing lean manufacturing within small-to-medium sized manufacturing

firms (SMEs). By assessing the impact of lean implementation, SMEs can make

informed decisions on the viability of lean adoption at the conceptual

implementation stage. Companies are also able to determine their status in

terms of lean manufacturing affordability. Figure 2-1 shows the structure of lean

implementation developed by Achanga (2007):

Firstly, qualify need for lean, which means to decide whether or not to use lean

methods for the projects. A company can carry out investigations of its current

manufacturing issues to identify the issues or problems that its business faces.

If results of this phase are not conclusive, the project may be reassessed or

abandoned completely.

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Secondly, the leadership commitment is essential for the success of the

projects. If the company is intending to apply lean for the first time, its

requirements for lean consultancy and training may be huge. It needs full

support from the leadership to start the project.

Then the project team and time scale need to be decided. If the company

cannot find someone who knows the work in the company and understands

lean concept at the same time, it may abandon the project completely, or revise

it again.

Phase four is the financial impact assessment, which aims to calculate the

possible outcomes of the lean project. The assessment result will be referenced

by managers to make decisions. If managers are not satisfied with the possible

financial gains, the company may abandon the project completely or revise it.

Next step is pre-implementation, where project team members measure the

problems in current state as well as design the future state.

At implementation stage, changes should be made according to the plans made

in pre-implementation step. Changes to the system are made according to the

detailed design of future state.

After implementation process, the project team need to summarize their work,

and write up reports and documentations at post-implementation stage.

2 .2 L E A N M A N U F A C T U R IN G T O O L S

The tools and techniques used to introduce, sustain, and improve the lean

system are sometimes referred to as the lean building blocks. Many of these

building blocks are interconnected and can be implemented in tandem. For

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example, 5S (workplace organization and standardization), visual controls,

point-of-use storage (POUS), standard work, streamlined layout, working in

teams, and autonomous maintenance (part of total productive maintenance)

can all be constituents of lean tools. The building blocks are introduced as

follows: (Alukal and Manos, 2006):

2.2 .1 5S

A system for workplace organization and standardization. The five steps that go

into this technique all start with the letter S in Japanese (seiri, seiton, seison,

seiketsu, and shitsuke). These five terms are loosely translated as sort, set in

order, shine, standardize,' and sustain. Achanga (2007) stated, that the 5S

approach is not simply a system for house keeping; but a method for organising,

standardising and improving the whole of a manufacturing process. The sole

objective of the technique is to ensure total eradication of unwanted items within

the working environment of an organisation.

2 .2 .2 V ISU A L CO NTRO LS

The placement in plain view of all needed information, tools, parts, production

activities, and indicators so that everyone involved can understand the status of

the system at a glance.

The intent of a visual factory is that the whole workplace is set-up with signs,

labels, colour-coded markings, etc. so that anyone unfamiliar with the process

can, in a couple of minutes, know what is going on, understand the process,

and know what is being done correctly and what is out of place.

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A visual factory is made up of visual displays and visual controls. Visual

displays and controls help keep things running as efficiently as they were

designed to run. Sharing information through visual tools helps keep production

running smoothly and safely. Shop floor teams are often involved in devising

and implementing these tools through 5S and other improvement activities.

Visual controls describe workplace safety, production throughput, material flow,

quality metrics, or other information. Visual controls supply the feedback to an

area, much the same way that SPC (statistical process control) can give

process feedback to the operator running a particular operation.

A visual display relates information and data to employees in the area. For

example, charts show the monthly revenues of the company or a graphic

depicting a certain type of quality issue that group members should be aware of.

The efficient design of the production process that results from lean

manufacturing application carries with it a set of assumptions. The process will

operate as it was designed as long as the assumptions hold true. A factory with

expansive visual controls and displays will allow employees to immediately

. know when one of the assumptions has not held true.

Audio signals in the factory are also very important because they signal

malfunctioning equipment, sound warnings before the start of machine

operation, or other useful information.

A visual factory allows the people operating the process to stay on target.

(http://www.dwassoc.com/visual-controls.php)

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2 .2 .3 STR EA M LIN ED LAYO UT

A layout designed according to optimum operational sequence.

2 .2 .4 STA N D A R D W O R K

Consistent performance of a task, according to prescribed methods, without

waste and focused on human movement (ergonomics).

2 .2 .5 B A TC H -S IZE RED UCTION

The best batch size is one-piece flow, or “makes one and move one”. If one-

piece flow, is not appropriate, reduce the batch to the smallest size possible.

2 .2 .6 TEAM S

In the lean environment, the emphasis is on working in teams, whether it is

process improvement teams or daily work teams.

2 .2 .7 Q U A LITY A T TH E SO U R C E

This is inspection and process controlled by employees so they are certain that

the product or information that is passed on to the next process is of acceptable

quality.

2 .2 .8 PO IN T-O F-U SE STO R A G E

Raw materials, parts, information, tooling, work standards, supplies, procedures,

and so on, are stored where needed.

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2 .2 .9 Q U IC K C H A N G EO VER

The ability to change tooling and fixtures rapidly (usually in minutes) to enable

multiple products in smaller batches can be run on the same equipment.

2 .2 .1 0 P U L L /K A N B A N

A system of cascading production and delivery instructions from downstream to

upstream activities in which the upstream supplier does not produce until the

downstream customer signals a need (using a kanban system).

2 .2 .11 C E L L U L A R /F L O W

Physically linking and arranging manual and machine process steps into the

most efficient combination to maximize value-added content while minimizing

waste. The aim is single-piece flow.

2 .2 .1 2 T O T A L PR O D U C TIVE M A IN TEN A N C E (TPM)

A lean equipment maintenance strategy for maximizing overall equipment

effectiveness. Achanga (2007) states that Total Productive Maintenance (TPM)

is a brainchild of Preventive Maintenance (PM), and works identically to Total

Quality Management (TQM). The idea behind TPM is that of having zero

tolerance at breakdowns as well as defects. This production technique is very

central to the lean manufacturing ethos since it has the attributes of making

problems visible so that they are not buried but dealt .with right away. TPM also

calls for simplicity in the tasks people carry out as well, allowing the workforce

enjoyment while carrying out work they are assigned to do. The essence of

implementing the lean manufacturing technique of TPM is the provision of a

cost effective operation and support of the available manufacturing system.

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2 .2 .1 3 O TH ER TO O LS

Besides these building blocks, there are other concepts or techniques that are

equally important in lean: value stream mapping (VSM), just-in-time (JIT)

methods, error-proofing (poka-yoke), autonomation (jidoka), change

management, root cause analysis and problem solving, Kaizen (continuous

improvement) and policy deployment (hoshin planning). Since lean is a never-

ending journey, there is always room for continuous improvement.

2 .3 V S M (V A L U E S T R E A M M A P P IN G )

In "Lean Thinking (1996)", James Womack and Daniel Jones identified the

three critical management tasks of any business:

1) Problem solving (e.g., product or service design)

2) Information management (e.g., order processing and other transactional

activities)

3) Physical transformation (e.g., converting raw materials to finished product)

The authors define a value stream as the set of all specific actions required to

bring a specific product or service throughout the critical management tasks.

Clearly, there is a strong relationship among the three. For example, a product

design that is difficult to build will negatively impact the "physical transformation"

value stream. Also, poor information management from the market will

negatively impact the "problem solving" value stream. Therefore, in

manufacturing, all three tasks ultimately must be addressed.

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The original Lean concept of "flow" dates back to around 1910 and is attributed

primarily to Henry Ford. Toyota, however, is credited with taking Ford's original

flow concepts to the next level, with diversified small lot production. While not

specifically using the term “Lean”, Toyota has applied Lean concepts for more

than fifty years to its production and product development systems and is widely

recognized as the leader in the application of Lean thinking. In 1990, James

Womack and Daniel Jones documented the success of the Toyota Production

System (TPS) in "The Machine that Changed the World". Womack and Jones

went on to demonstrate that it represented a fundamentally different way of

thinking about processes, systems, and organizations as a whole when they

published "Lean Thinking" in 1996 (Locher, 2008).

But, what is still missing from the literature is a "how-to" book. How can

organizations get their arms around an often poorly defined existing

development process and redesign it based on the concepts of Lean thinking?

To start, they need a reference to guide them through a step-by-step

methodology that they can apply, in a real-time, practical way, to their own

development processes (Locher, 2008).

Why do we use value stream mapping as the methodology? Value stream

mapping is a method of visualizing the flow of a service, a product, or

information. It provides a system's view of the flow of work, involving multiple

processes, that goes well beyond traditional process mapping techniques.

Through the use of symbols or icons, it conveys a great deal of information in a

succinct manner. Also it incorporates process and system-related data to further

increase the power of the mapping methodology. As such, value stream

2 4

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mapping is the assessment and planning tool of Lean practitioners, and an

enabling tool to apply Lean thinking (Locher, 2008).

2.3.1 ADVANTAGES OF VSM

The true power of value stream mapping lies not in visually depicting the current

state of a process, but rather in the actions that are taken and the results

achieved by doing so. In other words, the power of the process lies in

developing achieved "future states" that provide breakthrough results to an

organization (Locher, 2008). Rother and Shook (1999) states that value stream

mapping (VSM) is an easy technique to visualise a whole and complex

manufacturing system, identify wastes and their sources and guide

improvement efforts. The core of VSM consists of the definition of an actual

state map (ASP) being a graphical representation of both materials and

information flow within a facility (Tapping et al. 2002). The capability to track an

order throughout the facility and to measure how long it remains in one place is

extremely useful, because it allows to uncover the roadblocks in product flow

and to understand the 'root causes' of waste. Therefore, VSM helps, to

streamline work process using lean concepts and to evaluate the improvements

that are obtainable through lean manufacturing. These objectives are usually

formalised in a future state map (FSM), which represents the ideal pull

production system to be obtained (Braglia, et al. 2009).

With respect to other mapping techniques, VSM offers several advantages

(Braglia, et al. 2009):

1). It shows the linkage between product flow and information flow;

2 5

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2). It includes information related to production time as well as to inventory

levels;

3). It helps to visualise the production process at the plant level, not just at

the single process level;

4). It relates the manufacturing process internal to the facility to the whole

supply chain;

5). It links products planning and demand forecast both to production

scheduling and to flow shop control, using operating parameters such as Takt

Time, which determines the production rate at which each processing stage in

the manufacturing system should operate;

6). It makes decisions about the flow evident, enabling people to discuss

them;

7). It gives managers and employees the same tool and a common

language to communicate;

8). It constitutes the basis of a well-structured implementation plan.

2.3.2 PRO CESS MAP FO R VSM (L o c h e r , 2 0 0 8 )

As with all tools, there is a recommended process for using value stream

mapping (Figure 2-2). The first step in the process -- the "preparation" step - is

critical to conducting an effective value stream mapping event, and to the

successful implementation of the envisioned "future state"; the preparation step

occurs before the mapping event itself. During the preparation step, the team

tasked with the objective of improving the development process is assembled.

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Next, this team develops the "current state" - a visual, agreed upon depiction of

how things work today. The team then develops the future state - their shared

vision of a new, lean development process. Finally, there is the "planning and

implementation" step.

- Id en tify ing th e m a p p in g te a m , th e

p ro d u c t o r p ro jec t to s tu d y , a n d h o w

th e p ro je c t o r p ro d u c t w ill b e m a p p e d .

- A g re e in g on a w e ll u n d ers to o d m a p

o f th e cu rre n t s itu a tio n .

- A g re e in g o n a s h a re d v is io n o f a

lea n d e v e lo p m e n t p ro cess .

- D e v e lo p in g a p lan to a c h ie v e th e

fu tu re s ta te .

F ig u re 2 - 2 P ro ce s s M a p fo r V S M

The ultimate goal to value stream mapping is to achieve the future state and to

realize the expected benefits. The typical duration of the mapping event is three

days, including the development of the current state, the future state, and a

detailed implementation plan. Obviously, implementation will occur after the

event, over a one - to twelve-month period of time (Locher, 2008).

2 .4 S H O R T C O M IN G S O F L E A N M A N U F A C T U R IN G T O O L S

Value Stream Mapping (VSM) has become an integrated and essential

technique in lean projects; it combines material processing steps with

information flow as well as other important related data (Tony Manos, 2006).

However, being a static method, VSM has many limitations such as its inability

to assess the effects of variation, to validate effects of proposed changes before

implementation, to identify other possible improvements or to capture the27

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interactions between system components (Standridge and Marvel, 2006).

Braglia, et al. (2009) summarizes the main drawbacks of VSM as follows:

1. It is a paper- and pencil-based technique, thus the accuracy level is

limited and the number of versions that can be handled is low;

2. It lacks the spatial structure of the facility layout and how that impacts

interoperation material handling delays;

3. It fails to show the impact of inefficient material flows on work in process

(WIP), order throughput and operating expenses;

4. It cannot address the complexity of high-variety low-volume type

companies, whose value streams are composed of hundreds of industrial parts

and products;

5. It can be effectively applied only to linear product systems, as it fails to

map value streams characterised by multiple flows merging together;

6. It lacks the capability for a rapid development and evaluation of multiple

what-if analyses that are required to prioritise different alternatives;

7. It cannot be applied to engineering processes due to fundamental

differences between manufacturing and engineering methods;

8. It is unable to give a real vision of the variability problems concerning the

production process analysed.

From literature review we find out that by embedding simulation in VSM, it may

be possible to overcome some of these limitations. However, so far there has

been no uniform way of modelling VSM. In order to fill in the research gap, a

2 8 ,

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reference framework about embedding simulation in lean projects (especially in

VSM tool) is proposed in this thesis.

2 .5 S IM U L A T IO N A P P L IC A T IO N IN L E A N P R O J E C T S

2.5.1 S IM U LA TIO N C LA C IFIC A TIO N S

Computer simulation models can be classified in several ways (Rubinstein,

1998), (Law and Kelton, 1991), (Banks, et al. 2001) and (Zeigler, et al. 2000):

1. Static versus Dynamic Models: Static models are those that do not evolve

overtime. In contrast, dynamic models represent the behaviour of systems over

time.

2. Deterministic versus Stochastic Models: Models that incorporate at least a

single random variable in the representation of the model are termed stochastic

models, while models that incorporate non random (deterministic) variables

exclusively in their representation are termed deterministic models.

3. Continuous versus Discrete Models: Models can also be classified in the way

the notion of time is handled. In continuous models the state of the model

changes continuously with respect to time. Continuous models generally

employ a system of differential or difference equations to express a model of a

particular system. Examples of continuous models include models of air flow on

aircraft wings, models of chemical reactions and system dynamics models, etc.

Simulations of these models are performed by solving the differential equations

either on an analogue computer or digital computer. On the other hand, discrete

models update their state instantaneously at a finite number of discrete points in

time. The manner in which the state is transformed is expressed using a logical

2 9

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state transition function as opposed to mathematical equations. Simulation is

performed by employing discrete event simulation software on a digital

computer. Discrete event models are usually used in the modelling of queuing

network systems such as manufacturing systems, etc.

This thesis deals only with discrete, dynamic and stochastic simulation models.

Such models have collectively been termed as discrete event dynamic models

(DEDM) or discrete event simulation (DES) in the literature.

2.5.2 DES (DISCRETE EVENT SIMULATION) MODELLING

Banks (1998) stated that process simulation, often used to model production

and business processes in both the manufacturing and service sectors, is

referred to as discrete event simulation (DES). Discrete event systems are

dynamic systems that evolve in time by the occurrence of events at possibly

irregular time intervals, since this resembles the nature of the majority of real-

world applications. Examples include traffic systems, manufacturing systems,

computer communication systems, call centres, bank operations, hospitals,

restaurants, production lines, and flow networks. Most of these systems can be

modelled in terms of discrete events whose occurrence causes the system to

change from one state to another in a stochastic manner.

Law and Kelton (1991) stated that by utilizing computer capabilities in logical

programming, random generation, fast computations, and animation, DES

modelling is capable of capturing the characteristics of a real-world process and

estimating system performance measures at different settings of its design

parameters. System modelling with DES includes mimicking the structure,

layout, data, logic, and statistics of the real-world system and representing them

30

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in a DES model. Figure 2-3 shows the elements of system modelling with DES.

Abstracting the real-world system in a DES model can be approached by

precise understanding and specification of the details of the five system

modelling elements shown in Figure 2-3.

D a ta

S tru c tu re

R e a l-W o r ld

S y s te mL o g ic

L ay o u t

S ta tis t ics

D E S S y s te m

M o d e l '

F ig u re 2 - 3 E lem en ts o f S ys te m M o d e llin g w ith D E S

1). System Data: Real-world systems often involve a tremendous amount of

data while functioning. Data collection system (manual or automatic) are often

used to collect critical data for various purposes, such as monitoring of

operations, process control, and generating management reports. DES models

are data-driven; hence, pertinent system data should be collected and used in

the model. Model performance and results are highly dependent on the quality

and accuracy of such data, based on the commonly used term garbage-in­

garbage-out. Table 2-2 presents the data that need to be collected for modelling

various simulation elements.

T a b le 2 - 2 D a ta C o lle c te d fo r V a r io u s D E S E le m e n ts

Element Modelled Pertinent S im ulation Data

Machine (Load, cycle, unload) time, MTBF, MTTR

Conveyor Speed, capacity, type, accumulation

Operator Walk speed, work sequence, walk path

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Element Modelled Pertinent S im ulation Data

Buffer Capacity, discipline, input / output rules

Automated guided vehicle Speed, acceleration / deceleration, route

Power-and-free system Speed, dog spacing, chain length

Part / load Attributes of size, colour, flow, mix

2). System Structure: A system DES model is expected to include the

structure of the actual system being simulated. This structure is basically the set

of system elements in terms of physical components, pieces of equipment,

resources, materials, flow lines, and infrastructure. Elements of a manufacturing

system are different from the elements of a business system. Whereas

manufacturing systems are modelled using machines, labour, work pieces,

conveyors, and so on, business systems are modelled using human staff,

customers, information flow, service operations, and transactions. Modelling

such elements thoroughly is what makes a model realistic and representative.

However, the level of details and specifications of model structural elements

depends primarily on the objective and purpose for building the model. Table 2-

3 shows examples of structural elements for a plant or a manufacturing system.

T a b le 2 - 3 E xa m p le s o f S tru c tu ra l E le m e n ts in D E S

Structura l Element Modelled Model Performance Factor A ffected

Conveyor length Conveyor Capacity

Unit load dimensions Number of units stacked

Buffer size Buffer capacity

Length of aisles and walkways Walking distance and time

Size of automated guided vehicle AGV Number of AGV carriers

Length of monorail Carrier travelling time

Dog spacing of power and free system Power and free throughput

Dimensions of storage units Storage and retrieval time

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3). System Logic: System logic comprises the rules and procedures that

govern the behaviour and interaction of various elements in a simulation model.

It defined the relationships among model elements and how entities flow within

a system. The programming capability of simulation languages is often utilized

to implement the system logic designed into the DES model developed.

Similarly, real-world systems often involve a set of simple or complex logical

designs that control system performance and direct its behaviour. Abstracting

relevant logic into , a DES model is a critical modelling task. In a typical

simulation model, it is often the case that several decision points exist within the

model operations, such as splitting and merging points. At these decision points,

certain scheduling rules, routing schemes, and operational sequences may

need to be built into the DES model to reflect the actual performance of the

underlying system. Table 2-4 provides examples of such logical designs.

T a b le 2 - 4 E xa m p le s o f M o d e l L o g ica l D e s ig n s

Model A c tiv ity Logical Design

Parts arriving at loading dock Sorting and inspection scheme

Requesting components Model mix rules

Producing an order Machine scheduling rules

Material handling Carrier routing rules

Statistical process control Decision rules

Machining a part Sequence of operation

Forklift floor operation Drivers' dispatching rules

Storage and retrieval system (AS / RS) AS / RS vehicle movement rules

4). System Layout: A system layout is simply the configuration plan for a

system's structural elements. The layout specifies where to locate pieces of

equipments, aisles, repair units, material-handling systems, storage units,

loading and unloading docks, and so on. Similar to system structure, placing

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and sizing model elements according to the layout specified results in a more

representative DES model. Sticking to layout specifications helps capture the

flow path of material or entities within the system. When designing new systems

or expanding existing ones, the layout often plays an important role in

assessing design alternatives. Facility planning is the topic under which the

layout of a plant or a facility is designed. Department areas and activity-

relationship charts are often used to provide a design for a facility layout.

Locations of departments, distances between them, and interdepartmental flow

need to be captured in the DES model to provide accurate system

representation.

5). System Statistics: System statistics are means of collecting run-time

information and data from a system during run time and aggregating them at the

end of simulation run time. During run time, such statistics are necessary to

control the operation and flow of system activities and elements. At simulation

end, these statistics are collected to summarize system performance at various

system design and parameter settings. In a system DES model, therefore,

statistics are collected and accumulated to provide a summary of results at the

end of run time. Such statistics are used to model real-time monitoring gauges

and clocks in a real-world system. Because of model flexibility, however, some

statistics that are used in the model may not actually be in the real-world system.

This is because statistics do not affect model performance. Therefore, we can

define statistics that are necessary to system operation and other statistics that

may provide useful information during run time and summarize the results at the

end of run time. Table 2-5 provides examples of model statistics.

3 4

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T a b le 2 - 5 E xa m p le s o f M o d e l S ta tis tic s

Model S tatistic Value Measured

Jobs produced per hour System throughput

Percent of machine busy time Machine utilization

Number of units in system Work-in-progress level

Time units spend in system Manufacturing lead time

Number of defectives Process quality

Number of machine failures Maintenance plan

Number of units on a conveyor Conveyor utilization

Number of units on a buffer Buffer utilization

2 .5 .3 S T E P S IN A S IM U L A T IO N S T U D Y

Law and Kelton (1991), Banks (1998) Banks, et al. (2001) and El-Haik and Al-

Aomar (2006) summarized procedure for conducting simulation studies. Figure

2-4 shows the flowchart of the step-by-step simulation procedure.

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F ig u re 2 - 4 T h e S im u la tio n P ro ce d u re

1). Problem Formulation: The simulation study should start with a concise

definition and statement of the underlying problem. The problem statement

includes a description of the situation or the system of the study and the

problem that needs to be solved. Formulating a design problem includes stating

the overall design objective and the constraints on the design process. Similarly,

formulating a problem in an existing system includes stating the overall

problem-solving objective and the constraints on the solution proposed.

2). Setting Study Objectives: Based on the problem formulation, a set of

objectives can be set to the simulation study. Such objectives represent the

36

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criteria through which the overall goal of the study is achieved. Study objectives

simply indicate questions that should be answered by the simulation study.

Examples include determining current-state performance, testing design

alternatives, studying the impact of speeding up the mainline conveyor, and

optimizing the number of carriers in a material-handling system.

3). Conceptual Modelling: Developing a conceptual model is the process

through which the modeller abstracts the structure, functionality, and essential

features of a real-world system into a structural and logical representation that

is transferable into a simulation model. The model concept can be a simple or a

complex graphical representation, such as a block diagram, a flowchart, or a

process map that depicts key characteristics of the simulated system, such as

inputs, elements, parameters, logic, flow, and outputs. Such a representation

should eventually be programmable and transferable into a simulation model

using available simulation software tools.

4). Data Collection: Simulation models are data-driven computer programs

that receive input data, execute the logic designed, and produce certain outputs.

Hence, the data collection step is a key component of any simulation study.

Simulation data can, however, be collected in parallel to building a model using

the simulation software. This is recommended since data collection may be time

consuming in some cases, and building the model structure and designing

model logic can be independent of the model data. Default parameters and

generic data can be used initially until the system data are collected.

5). Model Building: Data collection and model building often consume the

majority of the time required for completion of a simulation project. To reduce

such time, the modeller should start building the simulation model while data

are being collected. The conceptual model can be used to construct the

37

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computer model using assumed data until the data collected become available.

The overlap between model building and data collection does not affect the

logical sequence of the simulation procedure.

6). Model Verification: Model verification is the quality control check that is

applied to the simulation model built. Like any other computer program, the

simulation model should perform based on the intended logical design used in

building the model. To verify a model, we simply check whether the model is

doing what it is supposed to do. Other verification techniques include applying

rules of common sense, watching the model animation periodically during run

time, examining model outputs, and asking another modeller to review the

model and check its behaviour.

7). Model Validation: Model validation is the process of checking the

accuracy of the model representation to the real-world system that has been

simulated. It is simply about answering the following questions: Does the model

behave similarly to the simulated system? Since the model will be used to

replace the actual system in experimental design and performance analysis,

can we rely on its representation of the actual system? Several techniques are

usually followed by modellers to check the validity of the model before using it

for such purposes. Examples include checking the data used in the model and

comparing them to the actual system data, validating the model logic in terms of

flow, sequence, routing, decisions, scheduling, and so on, with regards to the

real-world system, and matching the results of the model statistics to those of

actual system performance measures.

8). Model Analysis: Having a verified and validated simulation model

provides analysts with a great opportunity since it provides a flexible platform on

which to run experiments and to apply various types of engineering analyses

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effectively. Model analysis often includes statistical analysis, experimental

design, and optimization search. The objective of such methods is to analyze

the performance of the simulation model, compare the performance of proposed

design alternatives, and provide the model structure and parameter setting that

will lead to the best level of performance.

9). Study Documentation: The final step in a simulation study is to document

the study and report its results. Proper documentation is crucial to the success

of a simulation study. Documenting the simulation study is the development of a

study file that includes the details of each simulation step. Comprehensive

documentation of a simulation study comprises three main elements: detailed

documentation of the simulation model, the development of an engineering

simulation report, and the presentation of simulation results to customers and

partners of the simulation project.

Documentation of the simulation model includes both the concept model and

the simulation program. Such documentation facilitates making model changes,

explaining the data used in the model, debugging code and logic, understanding

model behaviour, and interpreting model results.

El-Haik and Al-Aomar (2006) stated that the major deliverable of. the simulation

study is the development of a simulation report. A simulation report includes the

following elements:

(1) The system being simulated

a. Background

b. System description

c. System design

(2) The simulation problem

a. Problem formulation

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b. Problem assumptions

c. Study objectives

(3) The simulation model

a. Model structure

b. Model inputs

c. Model assumptions

(4) Simulation results

a. Result summary

b. Results analysis

(5) Study conclusion

a. Study finding

b. Study recommendations

(6) Study supplements

a. Drawings and graphs

b. Input data

c. Output data

d. Experimental design

e. Others

Results presentation often includes a summary of the simulation results

(summary of study steps, results and findings, conclusions, and

recommendations). The presentation should include running animations,

movies, or snapshots of the simulation model in a variety of situations. Such

animations help explain the study results and aid the analyst in selling the

design proposed, comparing design alternatives, and securing management

support through proposed solutions and plans of action.

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2 .5 .4 VSM M O DELS W ITH STA N D A R D T EM PLA TES

Value Stream Mapping (VSM) has become an integrated and essential

technique in lean projects; it combines material processing steps with

information flow as well as other important related data (Tony Manos, 2006).

However, being a static method, VSM has many limitations such as its inability

to assess the effects of variation, to validate effects of proposed changes before

implementation, to identify other possible improvements or to capture the

interactions between system components (Standridge and Marvel, 2006). All

these shortcomings have led to the use of simulation.

Many attempts have been made to embed simulation in lean projects. For

instance, Bayle, et al. (2001), Abbas, et al. (2006), Adams, et al. (1999), Wang,

et al. (2005), Bodner and Rouse (2007), Huang and Liu (2005), and Lian and

Van (2007) gave an overview of embedding simulation in lean projects and

used case studies to illustrate how simulation could be used in lean

manufacturing.

In recent years, many researchers are trying to combine simulation method with

static value stream mapping (VSM). Traditional VSM models are built with

standard simulation templates, which are time-consuming and unreliable; since

there are no uniform ways of modelling VSM, the reliability of simulation models

depends on model builder's experience, and it is very difficult for non-experts to

build simulation models of VSM on their own. McClellan (2004) stated that

making an accurate simulation model is very difficult because of the

tremendous amount of factors that are a part of a normal manufacturing system.

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Many papers have used traditional simulation methods -- which means through

basic templates offered by simulation software to build VSM models. For

instance, Donatelli (2002) tried to integrate value stream mapping (VSM) into

discrete event simulation to further the continuous improvement goals of lean

manufacturing.

Abdulmaled and Rajgopal (2007) developed a simulation model (using Arena 5)

to analyze current and future state of VSM in a steel mill.

However, since they used standard templates to build models, the models were

very large and the logic was very complicated. A lot of time was spent on code

checking and logic verification aside from model building. The whole process

was time-consuming, and the model was complicated and not reusable. It was

very difficult for non-experts to build such complex models.

Detty (2000) used SIMAN V language to build simulation models of VSM, which

is very difficult for users to understand the program, not to mention change the

internal logic of the model.

2.5.5 VSM MODELS WITH CUSTOMISED TEMPLATE

In Arena, simulation models were built by placing modules in a working area of

a model window, providing data for these modules, and specifying the flow of

entities through modules (Miwa and Takakuwa, 2005). Traditional models are

built by using basic templates which contains basic modules offered by

simulation software. Customised template is designed and developed on the

basis of basic templates, for instance, the customised template proposed here

is designed for VSM (value stream mapping) modelling.

4 2

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Many attempts have been made to design customised template for VSM

simulations as well. For example, Lian and Van (2007) developed a VSM-based

simulation generator, and described its database structure. However, it requires

a lot more data information than the data shown on static VSM. The static VSM

can only provide basic information for the model such as entities, locations,

setup times and cycle time, more detailed data need to be obtained from ERP

database, and some reformatting and data filtering techniques are required as

well. The simulation generator requires users to be familiar with ERP database

as well as simulation model, which stops non-experts to use it.

Treadwell and Herrmann (2005) developed a kanban module to facilitate

simulating pull production model. They stated that modern discrete-event

simulation software has many modules to help analysts quickly construct

simulation models of manufacturing systems. Moreover, simulation is a very

useful tool for designing manufacturing systems. However, pull production

control has not been adequately addressed. They discussed various ways to

implement pull production control in discrete event simulation (specifically,

Arena, by Rockwell Software). A kanban workstation module was modelled as

resources. Thus, all of the overhead for tracking kanbans is managed internally,

while providing flexible options for entity creation or input from an external

source. The analyst needs to include only a single, easily customized module to

represent each workstation. Constructing a complete model then requires much

less effort than if it were to be constructed from standard Arena components. At

this point, the kanban workstation module can model stations with parallel,

identical servers but cannot be used for fork or join processes. They claimed

that users could save more than half the time to construct a simulation model

4 3

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with their tool. However, to use their tool, users have to be familiar with VSM

(value stream mapping) as well as Arena software, and have a deep

understanding of resource concept in the simulation model; thus it is not a

completely simplified tool for model constructing, and non-expert of simulation

may find it very difficult to understand and use.

Lian and Van (2002) designed a template containing four basic modules to

simulate VSM models. However, the templates were only designed for pull

system, and users still have to use standard templates to build simulation

models for push system, which makes the modelling process more complex and

confusing. Again, it is not a completely simplified tool for VSM model

constructing.

2.5.6 A LT ER N A TIVE A P PR O A C H E S FO R M O D ELLING LEAN

PRO JECTS

Apart from simulation models built for VSM (value stream map) as discussed in

Section 2.5.5 and Section 2.5.6 in details, there are other solutions to lean

problems. For instance, Agbulos and AbouRizk (2003) designed a simulation

model for drainage operations maintenance crews. The application of the

industrial engineering philosophy of work measurement, lean production theory,

and simulation analysis was used to capture current work methods, generate

and test alternative methods, and develop new standards. The principles of lean

thinking were applied to this model. The daily work (Service Line Roding)

activity was broken down to a number of tasks and then further subdivided into

work elements. In addition, each element of the work process was designated

as either value added (VA) or non-value added (NVA) work step. The current

state model is built in a hierarchy that represents different levels of detail for the

44

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actiiti. The highest level of the hierarchy represents the work preparation, work

steps, work completion and transportation elements. The actual service line

rodding is found at the lowest level of the hierarchy (child level). The paper

illustrated the improvement in SLR productivity of 10.6% through applying lean

theory to current SLR work methods.

Van der Zee and Slomp (2005) developed a simulation game to support the

introduction of lean principles in an existing assembly line. The simulation game

can be used to demonstrate applicability of a lean control concept at the

assembly line and to train workers to make appropriate control decisions within

this concept. The user interaction is intrinsic for this gaming model. The model

concerns a segment of the assembly line - 5 stations. It allows a single player

to make decisions on worker deployment by dragging worker icons to

respective stations. As an input for decision making a player may consider shop

status, i.e., the distribution of jobs and workers over the line, and several

indicators. Alternative scenarios may be chosen by changing the experiment

number in the display, and worker and station settings are reflected by setting

their labels accordingly. Game runs take about one half hour per scenario.

During a run, decisions are recorded for further analysis. After each scenario

learning experiences and initiatives towards rule construction are collected by

means of a questionnaire.

Khurma, Bacioiu and Pasek (2008) developed simulation models for current

and future states of Emergency Departments (ED) in Canadian hospitals. This

paper described an effort aimed at improvement of patients’ experience over

their ED stay. A combination of Lean tools were used to analyze, assess and

improve the current situation, such as Cycle Time Analysis, Work Combination

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Charts, Cause & Effect Matrix, Fish-bone Diagram, and Affinity Diagram. The

outcome helps to understand why the process system is creating long waiting

lines and overwhelming delays. In addition, simulation model software was used

to convey this information in a visual form and perform comparative analysis.

The modified process offers a better-managed, balanced and continuous

patient flow through ED. Consequently, a comprehensive and feasible

improvement appears that will ultimately enhance the quality of health care

services provided by the institution. The paper addressed some of the wastes

(Muda) in the front-end ED process, including transportation, over-processing,

waiting, motion etc. A future state layout was designed to dramatically reduce

the amount of travel the patient has to go through, simplify the whole triage

process and reduce travel for the hospital personnel.

Evans and Alexander (2007) discussed the use of multi-criteria models in

conjunction with optimization procedures and simulation in order to identify an

ideal system state and associated policy. An illustration of a replenishment

policy for a distribution system is described. A criterion model is a way of

combining all of the outputs from the simulation model so that a ranking of the

various alternatives associated with the simulation study can be accomplished.

A simulation model was built to represent the distribution system. Several

different types of control variables can be input to the model; however, the main

type investigated in this cast study, is that whether each branch orders a

product line directly from the vendor, or through the distribution centre (DC).

Various performance measure values are output by the model, including sales

dollars, lost sales, shipping charges, inventory carrying charges, and cost of

purchasing stock keeping units (SKU) from the vendor. In order to keep this

4 6

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case study brief in nature, only one product line, consisting of 27 different SKUs,

is considered. This gives us an optimization problem involving 19 zero-one

decision variables; hence, considering all possible combinations of 19 zeros

and ones, there are 2 to the 19th power possible solutions to this problem. Using

principles as procedures from the area of multi-objective decision analysis, an

appropriate criterion model can be identified which, when used with an

optimization procedure and simulation model, will allow for the identification of

an ideal system state along with a policy that will lead to that ideal state.

2 .6 C R IT IC A L A S S E S S M E N T O F L IT E R A T U R E S U R V E Y

From the literature survey, we can see that:

First of all, lean is a very powerful and popular methodology, among which VSM

is the assessment and planning tool of Lean practitioners, and an enabling tool

to apply Lean thinking (Locher, 2008). It provides a system's view of the flow of

work, involving multiple processes, that goes well beyond traditional process

mapping techniques.

Secondly, as a static method, lean has many limitations. Particularly for VSM,

Standridge and Marvel (2006) and Braglia, et al. (2009) summarized the main

drawbacks of VSM such as its inability to assess the effects of variation, to

validate effects of proposed changes before implementation, to identify other

possible improvements or to capture the interactions between system

components. By embedding simulation, it might be possible to overcome some

of these limitations.

Thirdly, many papers have discussed building simulation models for VSM.

Traditionally, people use standard template to build simulation models for VSM,47

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as demonstrated by Donatelli (2002) and Abdulmaled and Rajgopal (2007);

some researchers tried to design customised template for VSM modelling, such

as Treadwell and Herrmann (2005) and Lian and Van (2002). However,

problems with standard template is that it is time-consuming and logically

complicated; and the template proposed by Treadwell and Herrmann (2005)

and Lian and Van (2002) has limitations as well.

Fourthly, many attempts have been made to design process models for lean

projects, see works of Evans and Alexander (2007), Khurma, Bacioiu and

. Pasek (2008), Van Der Zee and Slomp (2005), Agbulos and AbouRizk (2003),

etc. Agbulos and AbouRizk (2003) designed simulation models with hierarchy

for current state and future state of the drainage operations maintenance, and

the multiple levels of sub-models have sufficiently represented the complexity of

the system. However, the reusability of the models is very low. The developed

simulation model can only demonstrate lean improvement for the particular

drainage maintenance system, and for another drainage maintenance system,

the models become totally useless and meaningless; not to mention other

systems which has requirements of lean improvement. Other case studies

shown in Section 2.5.6 have the same problem as being so specific to a

particular problem in a particular system, while do not provide generic solutions

for model constructing in lean projects.

Last but not least, the combination of Lean methodology and Simulation has

achieved greater success than merely use Lean method. But currently all the

case studies just make use of simulation in one or several stages of the

individual steps of lean methodology, while does not explain systematically how

simulation can be embedded into the lean projects, or illustrate how to build a

4 8

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holistic framework or structure to embed simulation into lean projects. And lacks

of integrity of the reference framework in turn will greatly influent Simulation

application in lean projects.

2 .7 S U M M A R Y

In summary, no authors have proposed a completely simplified method of VSM

modelling, see works of Lian and Van (2002) and Treadwell and Herrmann

(2005). The case studies presented in Section 2.5.6 have provided simulation

solution for some particular problems in particular systems; while they do not

have generic and holistic influence for building simulation models for lean

projects. Since lean methodology is a well developed process improvement

approach which contains systematic lean tools, there is a possibility to develop

a generic and holistic reference framework which enables easy model building

for lean projects. The method proposed in this thesis is a completely simplified

method of VSM modelling, it overcomes the limitations mentioned above, and it

enables non-expert of simulation build VSM models quickly and accurately.

Considering all problems mentioned above, a reference framework, termed

SimLean, is proposed to illustrate how to embed simulation in lean projects step

by step. A customised simulation environment is designed for VSM modelling to

compensate the drawbacks of static VSM; to simplify and facilitate VSM

modelling; and finally to standardize model building process of lean projects.

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3 R E S E A R C H M E T H O D O L O G Y

The literature review in last chapter has revealed three research gaps. These

gaps have facilitated the development of this research work, which aims to

develop a reference framework about embedding simulation in lean projects.

Hence, a hybrid research methodology was adopted for the research work. This

chapter describes the research methodology designed and used in the overall

research investigation.

The remainder of. this chapter is structured as follows: Section 3.1 summarizes

the research questions based on the research gaps; Section 3.2 provides the

design of research methods; Section 3.3 discusses the adopted research

methodology; At last, Section 3.4 describes the results obtained from interviews.

3.1 R E S E A R C H Q U E S T IO N S

The research questions were based on the research gaps identified from

literature review in last chapter. A fundamental issue raised from the gap was

that companies are not certain of the actual gain and benefit of embedding

simulation in lean projects. They also do not know how to use simulation in lean

projects. What’s more, they fear the simulation technique is too complicated to

apply to real manufacturing industry. The above statements have facilitated the

creation of the research questions, and the research questions below are

designed to guide the focus of this assumption.

1) Is it possible to embed simulation technique within lean projects?

2) What are the main concerns of embedding simulation?

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3) How can companies embed simulation in lean projects?

4) Can embedment of simulation help companies overcome some limitations in

lean implementation?

5) What is the most suitable delivery medium for the reference framework?

3 .2 D E S IG N O F R E S E A R C H M E T H O D S

Once we have stabilized our research questions, we can move from content to

method. The connection from content to method is through data. Data includes

evidence, information, or empirical materials. The essential idea is first-hand

observation and information about (or experience of) the world. Data is a very

broad term, and is subdivided into quantitative and qualitative (Punch, 2005).

Quantitative data are in the form of numbers, from either counting, or scaling, or

both. Measurement turns data into numbers, and its function is to help us make

comparisons. Denzin and Lincoln (1994) defined qualitative data as 'qualitative

empirical materials', which includes interview transcripts, recordings and notes,

documents and the products and records of material culture, audiovisual

materials, and personal experience materials (such as artefacts, journal and

diary information, and narratives). The qualitative researcher thus has much

wider range of possible empirical materials than the quantitative researcher,

and will typically also use multiple data sources in a project.

A comparison of quantitative and qualitative approaches in aspects of

characteristic and advantages are presented as follows (Punch, 2005):

• The quantitative approach conceptualizes reality in terms of variables,

and relationships between them. It rests on measurement, and therefore

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pre-structured data, and usually research questions, conceptual

frameworks and design as well. Its methods in general are more uni­

dimensional and less variable than qualitative methods. It is therefore

more easily replicable.

On the other hand, the qualitative approach deals more with cases. It is

sensitive to context and process, to lived experience and to local

groundedness, and the researcher tries to get closer to what is being

studied. It aims for in-depth and holistic understanding, in order to do

justice to the complexity of social life. Samples are usually small, and its

sampling is guided by theoretical rather than probabilistic considerations.

Its methods are less formalized than those in the quantitative approach.

They are also more multidimensional, more diverse and less replicable. It

therefore has greater flexibility.

There are different strengths and advantages to each approach.

Quantitative data enable standardized, objective comparisons to be

made, and the measurements of quantitative research permit overall

descriptions of situations or phenomenon in a systematic and

comparable way.

On the other hand, there are important strengths and advantages to the

qualitative approach as well. Qualitative methods are more flexible than

quantitative methods. Therefore they can be used in a wider range of

situations and for a wider range of purposes. Because of their great

flexibility, they are well suited for studying naturally occurring real-life

situations. Qualitative methods are the best way we have of getting the

insider's perspective, the meanings people attach to things and events.52

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This means they can be used to study the lived experience of people,

including people's meanings and purposes.

Based on the comparisons above, this research decides to adopt qualitative

research approach. This decision was made with reference to a number of

factors, but most important thing is the matching of research question with

method - using quantitative methods for quantitative questions, and qualitative

methods for qualitative questions. The main direction of influence is from

question to method. The research questions presented in Section 3.2 are more

about getting holistic information or finding out the interpretations it has for the

people involved; than making standardized and systematic comparison or in

accounting for variance.

3 .3 T H E S E L E C T E D R E S E A R C H M E T H O D O L O G Y

This research project has employed a hybrid research methodology. Specifically,

the research methodology adopted techniques such as literature review,

interviewing lean practitioners in companies and case studies as shown in

Figure 3-1. The selected research methodology is discussed in the following

five phases in details:

5 3

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P h a s e 1

R e s e a rc h S ta rt - > Iden tify R e s e a rc h P ro c es s — > S e le c t Q u a lita tiv e A p p ro a ch

IP h a s e 2

Iden tify R e s e a rc h G a p — ► L ite ra tu re R e v ie w — > D e s ig n R e s e a rc h Q u es tio n s

> L e a n M an u fac tu r in g

S im u la tio n T e c h n iq u e

> S im u la tio n in L ea n P ro jec ts

P h a s e 3

V e r ify R e s e a rc h H y p o th es is - > Ind u s tr ia l V is its — > D a ta A n a lys is - > D a ta V a lid a t io n

> O b s e rv a tio n s

In te rv ie w s

P h a s e 4

D e v e lo p S im L e a n F ra m e w o rk — > D e v e lo p C u s to m is e d S im u la tio n E n v iro n m en tV e r ify & V a lid a te

S im u la tio n T e m p la te

In te rv iew s

L ite ra tu re R e v ie w

P h a s e 5

E v a lu a te S im L e a n F ra m e w o rk & C u s to m is e d S im u la t io n E n v iro n m en t > R e s e a rc h E n d

> C a s e S tu d ies

> P u b lica tio n s

F ig u re 3 -1 T h e S e le c te d R e sea rch M e th o d o lo g y

(1) Phase 1: Identification of the research process

Phase one of the research process aims to identify the most suitable approach

for the whole research work. After examining both quantitative and qualitative

research approaches, deeply analyzing their strengths and weaknesses, we

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have decided to use qualitative research approach. The main reasons are

presented in Section 3.3 in details.

(2) Phase 2: Problems definition and literature review

The second phase of the research work aims to identify research gaps through

obtaining and analyzing background information on the relevant subject areas.

These areas include literatures on lean methodology, simulation technique and

simulation applications in lean projects. In addition, the limitations and

shortcomings of the case studies were also reviewed. The literature review was

conducted at the initial stages of the research investigation, and it revealed the

research gaps in knowledge. It is significant to note that, the review did not

provide specific information on building a reference framework about

embedding simulation in lean projects.

Therefore, there is a need for further research within the existing company that

has implemented the lean method previously. The idea behind it is to

investigate further, in order to determine the necessity, benefit and simplicity for

simulation embedment.

This research investigation was directed to a manufacturing company to get the

first hand information of the problem domain. What's more, company

involvements provided a platform’ for the data collection of this research

investigation. One experienced production manager, one production director

and two lean/six sigma consultants who had successfully implemented lean

methodology within their premises were selected in the research study.

(3) Phase 3: Research questions verification and interviews

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The third phase of the research study aims to verify research questions through

collecting data from companies. This was aided by the engagements of

production manager, production director and consultants as discussed below.

(i) Initial Contact:

After contacting companies by e-mail and telephone, a formal meeting was

arranged between the researcher and four experts (including one production

manager, one production director and two lean six sigma consultants).

(ii) Display simulation models:

In order to enable the production manager and director to have a general

understanding of simulation, the researcher demonstrated a simulation model of

a manufacturing factory, which included internal logic, animation, statistics and

a set of variables.

(iii) Observations in a manufacturing company:

In the investigated manufacturing company, the researcher carried out direct

observation which lasted about fifteen minutes at each manufacturing process.

Real-time information obtained from the observation was recorded as shown in

Appendix A. Observations were focused on processing time and error rate.

(iv) Interviews with production manager, director and lean consultant:

After collecting and analyzing data from observation, the researcher conducted

some interviews to verify the observation results, as well as to get further

information about the research work. Personal interviews were conducted

through a set of questions (see Appendix B). The interview lasted for two hours,

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and all the three experts (including one production manager, one production

director and one lean consultant) have at least four years experience of

implementing lean concept.

In order to find out their perspectives on lean implementation, the data

collection sheets were used and critical information on lean manufacturing

projects was obtained. The research designed a number of questions regarding

their comprehension of lean manufacturing, the major lean tools they have

adopted, the most successful lean projects they have completed and current

difficulties or problems in lean implementation. Through the use of prepared

questionnaires, the researcher was able to deduce a number of issues.

First of all, by analyzing information provided by the managers, the level of lean

implementation in this firm can be easily revealed. Secondly, the study also

wanted to find out the difficulties and problems that currently existed in their

lean implementation process. This was very important for the retrieval of lean

limitations or problems which might be overcome by simulation method. Thirdly,

the most commonly used as well as most important tools in their lean operation

were discussed. In addition, the collected data from shop floor was also

discussed and validated.

(v) Interview with lean six sigma consultant

Another two hour interview was undertaken with a lean six sigma consultant (a

black belt). The consultant has two years experience of implementing lean and

six sigma project, during which he had utilized modern technology frequently

such as statistical analysis software and simulation software. The result of this

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interview was very helpful to this research investigation as well as to the

framework development process.

(4) Phase 4: Development of the SimLean framework

Phase four of the research work aims to develop a reference framework about

embedding simulation in lean projects. This phase included two parts. The first

part was to develop the framework model; whereas the second part included

the development of a customised simulation environment. Both of these

activities involved personal interviews and literature survey. After developing the

customised simulation environment, verification and validation activities were

conducted for each module and the interactions between designed modules

were tested.

(5) Phase 5: Evaluation of the SimLean Framework

The final phase of the research work aims to evaluate the proposed SimLean

framework through case studies. In order to test the merit and worthiness of the

framework and the developed customised simulation environment, five case

studies.were selected as shown in Chapter six.

3 .4 R E S U L T S F R O M IN T E R V IE W S

Literature review has identified research gaps, as a supplementary process, a

number of practitioners were also consulted to assess their views on research

gaps identified. This section presents findings from company visits and personal

interviews. This section also discusses the major objectives of company

investigation and highlights the data collection results.

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3.4.1 RESEARCH QUESTIONS VERIFICATION

Chapter one highlighted the effectiveness and popularity of lean methodology,

which is very crucial for the improvement of manufacturing performance. This

notion is one of the major motivating factors for conducting this research. In

order to survive in the intense global marketplace, organisations and companies

are adopting various process improvement techniques, such as lean

methodology. However, literature review in chapter two revealed that lean

method has some limitations, which might be overcome by embedding

simulation technique. Unfortunately, literature review does not provide reference

framework for simulation embedment.

Hence, there is a need for investigating companies to understand this issue.

The major objective of company visits is to explore their lean operations, so as

to determine their major difficulties or problems in lean implementation. The

industrial investigation also tries to find out the most important and commonly

used tools in their lean practices, in order to determine which tool or tools

should be assisted by simulation technique. Finally, it is hoped that the results

obtained from interviews could help researcher develop the reference

framework - SimLean.

The industrial investigation used a list of questions to obtain a meaningful result.

The questions asked and their corresponding answers are described below:

1) What type of product is manufactured and what is the volume level?

Production manager: “The major product is frames, the production volume level

is large, and the variety of frames which can be manufactured in this company

is over 100.”

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2) How long has this company implemented lean concept?

Lean consultant: “The company has adopted lean manufacturing for about four

years until now. “ (The interview time was June, 2008).

3) What is the most successful process improvement during lean applications?

Lean consultant: “The greatest achievement is the reduction of average

production error rate from previously 15% four years ago to nowadays less than

3% ”

Production director: “The good result is achieved through continuous

improvement. We hold weekly and monthly quality meetings, during which

production data are gathered and analyzed. We have adopted lean tools such

as employees’ training, work balancing and one-piece flow.”

Production manager:”Through using automation technique and purchasing new

machines, we were able to eliminate the error in some processes immediately.”

4) What are the company’s current difficulties or problems in lean

implementation?

Production manager: “After ten years’ continuous progress in lean applications,

the company has encountered a new difficulty. In order to further improve work

performance, we want to apply for bank loans to purchase some new

equipment. It is a large investment. However, the productivity of the new

equipment varies within a certain range, and the new facility will cause changes

to all other processes. Considering the high risk in this investment, I find it

difficult to make a decision.”

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Lean consultant: “Another problem is the culture in this company. People don't

want to change the way they work, and are worried about losing jobs once the

company becom e‘lean’.”

5) Knowledge about using simulation in lean projects?

Production manager: "When we first started lean project four years ago, we did

not have experience to know or to use simulation. But now we know more about

lean, and we think simulation is a useful tool in lean project, and we would have

got big benefit from using it."

Lean consultant: “We have tried to do simulation on our own system recently,

but failed.”

The same questions were asked to the lean and six sigma consultant who has

used simulation technique in lean six sigma projects before. He clearly affirmed

that simulation technique has a great effect on actual lean and six sigma

projects, such as predicting results before implementation, comparing several

scenarios by building simulation models and discovering problems in a dynamic

system. Furthermore, he believed that simulation technique should be used in

pre-implementation stage of lean and six sigma projects, which is consistent

with Shapiro's (2002) opinion. Stephen Shapiro stated in "24/7 Innovation, A

Blueprint for Surviving and Thriving in an Age of Change" that "Misguided

innovation can be costly in time and money and in trust between manager and

employee. How can these risks be contained? Many companies find that

simulation is the answer. In my experience, the refinement of an idea through

computerized simulation is the best route to pre-implementation testing. It

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allows us to approach, if not achieve, perfection prior to betting the business on

it."

6) What are the most commonly used lean tools in your lean projects?

The data was collected using data collection sheet (see Appendix B). Table 3-1

below shows the results provided by two production managers and one lean

consultant.

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Table 3-1 Summary Results of P ra c t it io n e rs ’ V ie w s

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The interview questions were designed after conducting literature review. The

activities in lean projects as shown in the second column of Table 3-1 were

summarized by Standridge and Marvel (2006), where they stated that the

deficiencies of lean approach exist in these specific stages or steps. The lean

tools shown in row one of Table 3-1 were referenced from Bicheno (2006),

Tapping and Shuker (2002), Plenert (2007), Breyfogle (2008), Chase, et al.

(2006), Heizer, et al. (2008), Ross (2003), Taylor and Brunt (2001), Santos, et

al. (2006), Ortiz (2006), Page (2004), Alukal and Manos (2006), Womack and

Jones (2005), Nicholas and Soni(2006), Locher (2008) and Basu (2009). The

nine selected lean tools and two other, tools mentioned by interviewees are

described in details below:

(1) Value Stream Mapping: A waste identification tool that is used to identify

lean improvement opportunities based on the non-value-added processes that

get identified.

(2) Systems Flow Chart: A mapping tool to detail out the information process to

eliminate the non-value-added information flow lines that existed.

(3) Spaghetti Chart: a mapping tool to show the travel time of the materials

and/or the people involved in the process.

(4) Future State Value Stream Map: An ideal VSM achievable in the future to

help identify a target goal for our improvement effort.

(5) TAKT Time: The time it will take to produce one unit of product in order to

meet customer demand.

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(6) Lean Action Item List or Lean Newspaper: An action item list of

improvements to show the specific areas that are targeted for change.

(7) Lean Events: a team activity designed to eliminate waste and make rapid

changes in the workplace.

(8) 5S: The objective is to create an organized, safe, and productive work

environment. The 5Ss are:

Sort -- separate the needed from the unneeded items; Set in Order (Straighten)

- physically rearrange the layout; organize the work area; Shine - clean and

remove reasons for contaminants; Standardize - implement procedures and

signalling systems that ensure worker understanding of the process; Sustain --

set up systems to ensure open and complete communication.

(9) Simulation: A means of experimenting with a detailed model of a real system

to determine how the system will respond to changes in its structure,

environment or underlying assumptions.

Others (1) Standard Operations: Clearly defined activities and standardized

step by step procedures for machines and their operators.

Others (2) KPIs: Key performance indicator (KPI) is a measure of performance

which is commonly used to help an organization define and evaluate how

successful it is, typically in terms of making progress towards its long-term

organizational goals.

Table 5-2 shows that apart from “lean events” which has been ticked ten times,

VSM (including current VSM and future VSM) is the most commonly used tool

in their lean projects (ticked five times); The next commonly used tools are

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“Lean Action Item List” and “5S” (ticked four times each); “System Flow Chart”

and “KPI” were chosen for three times; The least often used tools are “Spaghetti

Chart”, “TAKT Time” and “Standard Operations” (one tick each); Finally, last

option - “Simulation” was never selected in their lean projects (zero tick). The

result of lean tools usage is consistent with their actual operations. This

company has weekly meetings to solve quality problems, and it explains the ten

ticks in “Lean Events”. “VSM” is the second most frequently used lean tool, and

the result approves the importance and significance of VSM in lean projects.

7) Which stages do you have difficulties in currently and would like to use

simulation technique to make improvements?

The data in column one of Table 3-1 shows that they would like to use

simulation in the following stages or activities: “ Identify problems”, “Rank

opportunities for improvement”, “Predict impact of improvement”, “Address

random and structural variation”, “Assess the interaction between system

components”, “Validate the future state", “Identify and consider alternatives to

the future state” and “Detail dynamic behaviour of production processes”.

Statistical analysis of lean tools selected in each step shows that seven tools

were used in "Identify problems” and four tools were chosen to “Rank

opportunities for improvement”. However, for other six stages (“Predict impact

of improvement”, “Address random and structural variation”, “Assess the

interaction between system components”, “Validate the future state”, “Identify

and consider alternatives to the future state” and “Detail dynamic behaviour of

production processes”) which they would use simulation to assist in, only one to

three tools were available to conduct the lean activities.

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3.4.2 C O N C LU SIO N S DRAW N FROM INTERVIEW S

The interview activity was scheduled for no more than two hours. The purpose

was to collect as much information as possible from the interviewees. At last, all

the information gathered from interviews were analyzed and compared with

information obtained from literature review.

The following conclusions were drawn from the interview:

1) A lack of supportive culture has been a big problem during lean

implementation in this company; Workers are reluctant to change and are afraid

of losing jobs after changes are made. This finding is consistent with Achanga,

et al. (2006)'s view from literature survey. They stated that "the creation of a

supportive organisational culture is an essential platform for the implementation

of lean manufacturing. High-performing companies are those with a culture of

sustainable and proactive improvement. Manufacturing, almost more than any

other sector, is a global industry; It is highly desirable to have some degree of

communication skills, long-term focus and strategic team while intending to

implement any new initiative."

2) They have realized the power of simulation technique in general. However,

without a clear, step-by-step reference framework, the trial of simulation on their

system was a total failure. This finding has further confirmed the importance

and urgency of this research work.

3) Interview helped researcher to develop the SimLean framework, particularly

in deciding to embed simulation in Pre-implementation stage. Interviews with

the experienced lean and six sigma consultant who has used simulation in his

projects confirmed the assumption that simulation should be applied before the

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lean implementation stage, and the view is consistent with Shapiro's (2002)

opinion.

4) The collected data in Table 3-1 showed that one of the most commonly used

tools in lean projects is VSM (value stream mapping). Combined with the view

of Rother and Shook (1999), who stated that “value stream mapping (VSM) is

an easy technique to visualise a whole and complex manufacturing system,

identify wastes and their sources and guide improvement efforts”, a preliminary

notion about designing a customised simulation template based on static VSM

was formed.

5) They have no good tools to predict the impact of future state before changes

are made. For instance, what is the throughput quantity if a new machine is

purchased; what influence will it bring to other processes? Problems like those

are difficult for them, and the solutions are not based on scientific statistics but

on managers’ experience.

6) They lack suitable tools to address variations in operation systems, or to

catch the dynamic behaviour of production processes. Data in Table 3-1 shows

that besides weekly meetings to discuss the problems and brainstorm solutions,

no tool has been used to assess the interaction between system components;

only two tools were used to address the variations in system and to detail the

dynamic behaviour of production processes.

7) The two stages in lean projects “Identify problems” and “Rank opportunities

for improvement” are very important to the company. They have attached great

importance to these stages, which can be seen from the number of tools

adopted in the two steps. Even though four to seven different tools have been

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applied to the above stages, they still want the assistance of simulation

technique to further improve the accuracy of the results and outcomes of the

two steps.

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4 B U IL D IN G T H E F R A M E W O R K

Literature review in Chapter 2 described a number of lean manufacturing tools,

simulation techniques and simulation applications in lean projects, Chapter 3

presented the research methodology adopted by this research study and results

gained from company visits and personal interviews. Conclusions from the

literature review and company investigations drew a number of research

questions. Particularly, it was revealed that existing lean techniques and

frameworks do not include holistic and systematic guidance about embedding

simulation in lean projects.

To overcome the drawback mentioned above, a reference framework about

embedding simulation in lean projects is proposed. This chapter describes the

development process of the framework about embedding simulation in lean

projects.

4.1 M O T IV A T IO N A N D D A T A C O L L E C T IO N

The motivation for developing a reference framework about embedding

simulation in lean projects is to enable enterprises employ simulation technique

in their lean operations easily and quickly, especially in pre-implementation

stage. Businesses should be able to evaluate their current operations as well as

predict their future performance. By embedding simulation method in their lean

operations, a company will know the best solution to adopt, choosing from many

alternatives; So as to greatly improve the project quality and efficiency, reduce

error rates, shorten trial and error time, and save a lot of money.

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To achieve this research aim, the researcher tried to find out the difficulties and

problems that companies encountered during lean implementation. Oral

communications with production manager, production director and lean six

sigma consultants, compounded. with literature survey provided a lot of

information. The information helped the development of the framework. The

collected data were analyzed and validated by people in academia as well as in

industry to prove its validity and accuracy.

4 .2 A N A L Y S IS O F S IM U L A T IO N E M B E D M E N T

Simulation embedment in lean projects means to build simulation models for the

lean manufacturing processes. First of all, a company or a factory needs to find

out the major problems or difficulties in their current system. Traditionally, this is

accomplished according to people’s experience, or through the use of static

lean analysis tools, such as various diagrams and charts. It could work well on

some static systems or systems without much variation. However, generally

speaking, manufacturing system is a dynamic process, and most problems

occur in a continuously changing production. What’s more, a system without

much variation might not need lean methodology. In a word, static tools can not

discover dynamic problems very well, but with the assistance of simulation

technique, it becomes possible to discover problems in dynamic productions.

Secondly, what a company or a business cares most is the effect or outcome of

the lean transformation. However, the existing lean tools do not have the

adequate function to predict results precisely. Without effective tools to predict

the results, companies have to make lean implementation through trial and error

approach, which costs a lot of workforce, time and money. Fortunately, with the

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help of simulation method, the effects of different scenarios can be predicted in

advance and in details, which could greatly reduce the risk and cost of lean

implementation.

4 .3 F R A M E W O R K D E V E L O P M E N T

The development of the reference framework about embedding simulation in

lean projects included several research processes. Firstly, literature survey was

conducted to gather information about current development of lean

methodology, simulation approach and their combination status. Data collection

sheets and interview questions were designed after literature review process.

Secondly, company visits were conducted to collect information such as current

difficulties or problems in their lean implementation, and the most frequently

used tools in lean activities. The main stages in lean project and the role of

simulation in lean projects were analyzed through personal interview with lean

six sigma consultants. After that, a reference framework and a customised

simulation environment were developed to make the embedment of simulation

in lean projects systematically and efficiently.

The proposed framework, termed SimLean, is described below (see Figure 4-1).

The SimLean framework is designed based on the assumption that the

company is already using lean methodology. There are seven main stages in

the framework, which cover the whole project cycle from “Establish need for

simulation” to “Post implementation”. With the assistance of the simple and

generic SimLean framework, managers and model users can easily discover

problems in current system and make correct changes to the system based on

implementation plan produced in pre-implementation stage.

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IN P U T (C o m p a n y u s in g " \

le an J O U T P U T

D e c is io n on s im u la tio n

ad o p tio n ;

Id en tified p ro b lem s fo r

sim u la tio n m eth o d .

S e t s im u la tio n o b jec tives ;

D e fin e p ro jec t s co p e ;

D e fin e p er fo rm an ce

m etrics .

M a n a g e m e n t su p po rt;

R e s o u rc e co m m itm en t;

B u d g e t fo r th e p ro jec t

(c o n su ltan cy , tra in in g ,

h a rd w a re a n d so ftw a re ).

S e le c t s im u la tio n te am ;

A n a ly z e th e sy s te m a n d s im u la tio n

o b jec t ive s briefly ;

D e te rm in e t im e sca le ;

Id en t ify a p r im a ry co n tac t;

B o th p a rt ies s ig n an a g re e m e n t.

5 .1 A n a ly z e tn e s ys tem

IS!

5 .2 C o lle c t d a ta

7 .2 G e t fee d b a c k s fro m cu s to m er5 .3 D raw V S M in V is io

7 .1 R e v ie w & ev a lu a t io n th e

p ro jec t

6 .2 Im p ro ve o r build sys tem

re fe rr in g to im p lem e n ta t io n p lan

X5 .4 G e n e ra te m o d e l in A re n a

5 .5 V e r ify & v a l id a te m o d e ls

5 .6 M o d e l le a n prin c ip les

5 .7 A n a ly z e s im u la tio n m o d e ls

X5 .8 E v a lu a te m o d e ls

5 .9 P ro d u c e an im p lem en ta t io n

6 .1 T ra in p eo p le a b o u t le a n an d

s im u la tio n

/

5 .1 0 P re p a re s im u la tio n rep o rt

F ig u re 4 -1 T h e P ro p o s ed S im L ea n F ra m e w o rk

4.3.1 ESTABILISH NEED FO R S IM ULATIO N

As shown in Figure 4-2, the first stage in SimLean is to establish need for

simulation, which means to decide whether or not to use simulation methods for

the projects.7 3 .

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INPUT

P e o p le w h o k n o w lean ,

a c tu a l p ro d u c tio n an d

s im u la tio n ;

L ist le a n p ro b le m s an d

an tic ip a te d le a n too ls.

P e o p le w h o k n o w le an ,

a c tu a l p ro d u c tio n an d

s im u la tio n .

f C o m p a n y using^N

lean J

\7

JSZ.2 . S e t s im u la tio n o b jec tiv es

O U TPU T

■ > 1. E s tab lis h n e e d fo r s im u la tio n

D e c is io n on s im u la tio n

ad o p tio n ;

Id en tifie d p ro b le m s fo r

s im u la tio n m e th o d .

S e t s im u la tio n o b je c tive s ;

D e f in e p ro jec t sc o p e ;

D e f in e p e r fo rm a n c e

m etrics .

F ig u re 4 - 2 S im L ea n S ta g e O n e

Input elements include a group of people who have knowledge of lean

methodology and know the actual production process very well. This group can

carry out investigations of its current manufacturing issues in their company to

identify the issues or problems that its business faces. Another input element is

a list of lean problems the company aims to solve and the anticipated lean tools

to be used in the project. Through comparing problems with Table 4-1, the

enterprise can quickly figure out simulation suitability in their lean project.

Table 4-1 lists the major lean problems and the simulation applicability for

solving them. The scores are determined after conducting literature review. If

the lean problems have been solved in case studies, the simulation applicability

is set as high; Otherwise, if the lean problems have not been found in literature,

the simulation applicability is determined as low. The case studies in Table 4-1

show that simulation technique is suitable for solving complex, dynamic,

interactive problems and has an excellent ability in predicting future states as

well as testing different scenarios.

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Through comparing the existing problems with those listed in Table 4-1,

companies can easily find out simulation suitability for their operations, and

make decision about simulation adoption in their lean projects. For instance, if

output of this investigation shows that they have severe problems such as long

lead time, huge inventory, unbalanced work station, et al., they can conclude

that simulation technique is the right tool to solve their problems.

T a b le 4 -1 S im u la tio n A p p lic a b il ity fo r L ean P ro b le m s

LEAN PROBLEMS SIMULATIONAPPLICABILITY

CASE STUDIES

Overproduction High Duanmu and Taaffe (2007);Waiting High Schroer (2004); Wang, Owen

and Mileham (2005); Enns, (2007); Duanmu and Taaffe

(2007);Transportation High Wang, Owen and Mileham

(2005); Enns, (2007);Non-value-addedprocessing

High Enns, (2007); Duanmu and Taaffe (2007);

Excess Inventory High Duanmu and Taaffe (2007);Defects Low NoExcess Motion Low NoUnderutilized people Low NoIdentify existing problems High Schroer (2004);Rank opportunities for improvement

High Enns, (2007); Duanmu and Taaffe (2007);

Predict impact of improvement

High Wang, Owen and Mileham (2005); Bodner and Rouse

(2007); Enns, (2007); Duanmu and Taaffe (2007);

Address random and structural variation

High Standridge and Marvel (2006); Schroer (2004);

Bodner and Rouse (2007); Wang, Owen and Mileham

(2005); .Assess the interaction between system components

High Standridge and Marvel (2006); Marvel, Schaub and Weckman (2005); Tan and Platts, (2003); Duanmu and

Taaffe (2007);Validate future state High Standridge and Marvel

(2006); Marvel, Schaub and Weckman (2005); Bodner and Rouse (2007); Enns, (2007); Duanmu and Taaffe (2007);

7 5

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LEAN PROBLEMS SIMULATIONAPPLICABILITY

CASE STUDIES

Identify alternatives to the future state

High Standridge and Marvel (2006); Wang, Owen and

Mileham (2005); Enns, (2007); Duanmu and Taaffe

(2007);Detail dynamic behaviour of production processes

High Standridge and Marvel (2006); Marvel, Schaub and Weckman (2005); Duanmu

and Taaffe (2007);Analyze data High Standridge and Marvel

(2006); Bodner and Rouse (2007); Enns, (2007);

Document process Low NoTrain personnel . Low No

4.3.2 SET SIMULATION OBJECTIVES

P e o p le w h o k n o w le an ,

ac tu a l p ro d u c tio n an d

s im u latio n ;

L ist lea n p ro b le m s an d

a n tic ip a ted le a n too ls.

P e o p le w h o kn o w le a n ,

ac tu a l p ro d u c tio n an d

s im u la tio n .

R e q u ire full s u p p o rt fro m

to p m a n a g e m e n t;

E x p la in p ro jec t b en e fits .

- > 1 . E s tab lis h n e e d fo r s im u la tio n

\ 7

3 Z .■ > 3 . M a n a g e m e n t c o m m itm e n t

D ec is io n o n s im u la tio n

ad o p tio n ;

Id e n tif ied p ro b le m s fo r

s im u la tio n m e th o d .

V 2 . S e t s im u la tio n o b je c tiv e s

S e t s im u la tio n o b jec tiv es ;

D e fin e p ro je c t s co p e ;

D e fin e p e r fo rm a n c e

m e trics .

M a n a g e m e n t su p p o rt;

R e s o u rc e c o m m itm e n t;

B u d g e t fo r th e p ro jec t

(c o n su lta n c y , tra in in g ,

h a rd w a re a n d s o ftw a re ).

F ig u re 4 - 3 S im L e a n S ta g e T w o

Figure 4-3 shows the stage two of SimLean framework, which aims to set

simulation objectives for the lean projects.

Input elements are a group of people who have knowledge of lean methodology

and simulation technology, along with problems identified for simulation method

from last stage. This group of people will decide whether or not to adopt

simulation technology in their lean projects. Generally speaking, not all lean

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projects need to employ simulation technique; only for the complex, dynamic

systems with many variables, or for predicting results before actual

implementations, it requires the use of simulation technique (detailed

description can be found in section 2.4, section 2.6 and section 4.2).

The output of this stage is to set simulation objectives for the project. Based on

the problem formulation in last stage, a set of objectives can be determined for

the simulation study. At the same time, project scope and performance metrics

should be defined clearly. Examples include determining current-state

performance, testing design alternatives, studying the impact of speeding up the

mainline conveyor, and optimizing the number of carriers in a material-handling

system.

4.3.3 M A N A G EM EN T C O M M ITM EN T

Figure 4-4 shows that leadership commitment is essential for the success of

projects. For instance, if a company is intending to apply lean for the first time,

its requirements for lean consultancy and training may be huge. It needs full

support from the leadership to start the project. Achanga, et al. (2006) stated

that "leadership and management commitment are the most critical ones in

determining the success of a lean project within the SMEs premise. In order to

succinctly implement the concept of lean manufacturing successfully within\

SMEs, the recipient companies should harbour strong leadership traits capable

of exhibiting excellent project management styles. Good leadership ultimately

fosters effective skills and knowledge enhancement amongst its workforce,

improve resource availability, willingness to learn and acquire new ideas and

technologies for its corporate competitiveness."

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Input elements include strong demand for supporting from top management,

explanation of project benefits to the management, and the output elements

from stage two.

F ig u re 4 - 4 S im L e a n S ta g e T h re e

Output elements of this stage include leadership commitment, and most

importantly, enough budget for the project (including consultancy, training,

hardware, software and others).

4.3.4 SIM ULATIO N TEAM AND T IM E SCA LE

After obtaining leadership commitment, the next stage is to find simulation team

and determine time scale (Figure 4-5).

R e q u ire fu ll s u p p o rt fro m

to p m a n a g e m e n t;

E x p la in p ro je c t b en e fits .

L o o k fo r su ita b le

s im u la tio n te a m .

3 . M a n a g e m e n t c o m m itm e n t

5 Z .

4 . S im u la t io n te a m & tim e s ca le

M a n a g e m e n t su p p o rt;

R e s o u rc e c o m m itm e n t;

B u d g e t fo r th e p ro jec t

(co n su lta n c y , tra in in g ,

h a rd w a re a n d s o ftw a re ).

S e le c t s im u la tio n te a m ;

A n a ly z e th e s y s te m a n d s im u la tio n

o b je c tiv e s b rie fly ;

D e te rm in e t im e s c a le ;

Id en tify a p rim a ry co n tac t;

Bo th p a r tie s s ign a n a g re e m e n t.

F ig u re 4 - 5 S im L e a n S ta g e F o u r

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Input elements are search for suitable simulation teams, and the output

elements from stage three. Good simulation teams should have profound

knowledge of simulation modelling and plenty experience in industry and lean

cases, meanwhile the budget is another factor that influences team selection.

Normally three options are available for team selection, which include hiring

consulting company, employing some simulation experts or building in-house

simulation department. Decisions should be made in consideration of the

frequency of simulation adoption, company size and possible budget. Table 4-2

shows the recommendation of team selection principles. For instance, if the

company size is small, and its simulation need is low, it might consider hiring

some consultants for the simulation projects; On the other hand, if the company

scale is big, and its need for simulation is very high, it could think of having its

own in-house simulation department.

T a b le 4 - 2 S im u la tio n T e a m S e le c tio n

\ C O M P A N Y S IZ E

S IM U L A T IO N f\T E £ D

SMALL MEDIUM LARGE

LOW* consultants consultants consultants

MEDIUM** consultants Experts Experts or In-

house

HIGH*** consultants Experts In-house

Low*: Companies only use simulation occasionally to solve particular problems. Medium**: Companies use simulation frequently.High***: Companies use simulation regularly or as a general practice in the pre­implementation stage.

After simulation team is determined, the simulation people should analyze the

system and simulation objectives briefly, in order to estimate if the mission can

be finished within original time scale. To ensure the good communication

between company and simulation team, a primary contact in the company who

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knows production very well should be selected at this stage. At the end of this

stage, an agreement should be drafted and signed by both parties.

4.3.5 PRE-IMPLEMENTATION

Next step is pre-implementation; where simulation models are constructed for

current state and future state of the system (see Figure 4-6). Detailed

descriptions are stated below.

Input elements include output elements from last stage, together with analyzing

the system carefully, developing system specification in six elements (see Table

4-3), collecting data in certain format and starting to build simulation models.

T a b le 4 - 3 S ys te m S p e c ific a t io n in S ix E le m e n ts (K e l to n , e t a l. 2 00 4 )

Elements Contents1. Simulation objective

What is to be included in the simulation model? At what level of detail?

2. System description

What are the primary resources of the system?Are process plans or process flow diagrams available?Are there physical, technological, or legal constraints on how the system operates?Are there defined system procedures?How are decisions made?

3. Modelling approach

When will data be available? What form will they be in? How accurate are the data?

4. Animation What type of animation is required?5. Input & output

Who will verify and validate the model, and how? What kind of output is required?How many scenarios will be considered?What are the major milestones of the study?

6.Deliverables

What are the deliverables?

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F ig u re 4 - 6 S im L e a n S ta g e F ive

Output elements include delivering models on time, asking client to install

simulation software on their PCs and preparing simulation reports and

documentations. Since the most time-consuming and laborious work -

simulation model building takes place at this stage, a detailed and step-by-step

guidance or roadmap is designed as shown in Figure 4-7.

Simulation modelling process accomplished at pre-implementation stage can be

divided into three steps, which are current state modelling, future state

modelling and results presenting. The flowchart is shown in Figure 4-7.

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F ig u re 4 - 7 S im u la tio n M o d e llin g a t P re -im p le m e n ta t io n S ta g e

(i) Step one

Step one begins with drawing current VSM in Visio software and fill in

parameters for each module. In order to simplify and facilitate model building

process for VSM, an interface in Visio - termed VisVSM template is designed

and described in Chapter five. Here users can draw VSM in Visio with

customised VisVSM template which contains parameters for each module in

correspondence with SimVSM template in Arena software, details are explained

in Chapter five.

After the current VSM is drawn with VisVSM template in Visio, users can export

the Visio drawing to Arena via “Simulation -> Simulation drawing” menu in

VisVSM template. A mapping file from Arena software to Visio software has

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been pre-defined to enable the auto-generation of simulation models with the

exported VSM drawings (see Appendix E).

Thirdly, it comes to verification and validation process. If the model logic has

problems, it can be discovered by verification process. If the output result

doesn’t match real system, it means the model is not valid, and the modeller

has to go back to the concept design step again, which is to draw the static

VSM in Visio environment.

After verification and validation step, we can make the output analysis of

simulation models. Since simulation technique is good at solving complex,

stochastic problems in dynamic systems, it provides better results than static

lean tools, such as VSM. The case studies in Chapter six provide detailed

descriptions of models’ output analysis.

Then we can use optimisation tools to carry out model experimentation. Arena

software provide OptQuest package to search for the optimal parameter set for

the model; OutputAnalyser (another package in Arena software) to compare

different scenarios for current state models. With reference to the results of

OutputAnalyser, we can pick up the best one or two scenarios of the current

state model, and run models for a long term, e.g. one year to check if variation

is within limit.

Step seven is evaluation process. If the customer is happy with the current state

model, the project goes to next step; otherwise, be prepared to redo the whole

work from step 1.1 “Draw current VSM in Visio”.

(ii) Step two

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After current state modelling comes to end, we start step two - future state

modelling. The procedure is almost the same, what differs from step one is that

“Draw current VSM” is replaced with “Draw future VSM” and “validation”

process is removed because there is no actual system to be compared with.

(iii) Results presenting

After current model and future model are well developed according to customer

requirements, it is time to present results and deliver models.

Simulation report should include outputs of current state model and future state

model. However, modellers should be prepared to make some changes to the

report; for instance, the customer might want the results in comparison format,

and shown in 3D-bar chart; Or the customer might not be interested in those

technical specifications, especially for top management, they only care about

actual savings on money and cost, in that case, to convert technical

specifications to economical numbers, some mathematical calculation might be

required.

If simulation report passes the evaluation, modellers can make plan for

implementation together with lean experts in the company, with reference to

future state model.

After implementation plan is made, the next thing is to disseminate the model

within time scale and ask client to install simulation software on their PCs. In the

end of the project, the final presentation and documentation should be provided

by the simulation team.

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4 .3 .6 IM PLEM EN TA TIO N

At implementation stage, changes should be made according to the

implementation plans made in pre-implementation stage.

F ig u re 4 - 8 S im L ea n S ta g e S ix

Input elements are people training and output elements from pre­

implementation stage. Production managers should be trained about using

simulation models to predict outcomes of their lean project, meanwhile

understand simulation report precisely.

Simulation model acts like a reference to managers at this stage (see Figure 4-.

8). Changes to the system are made according to the implementation plan

produced in last stage and the simulation model of future state; since several

future scenarios can be analyzed with OptQuest and OutputAnalyzer, managers

can clearly see the results of different implementation plans. It also helps to

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make the culture change and persuade employees to prepare for the changes.

Meanwhile, managers can compare real situation with simulation results and

make some adjustment to the model when necessary.

4.3.7 POST IMPLEMENTATION

Post implementation stage is all about project review and future project

discussion (see Figure 4-9). The simulation team should ask for feedbacks from

the customer, and if the customer is satisfied with the simulation work in lean

project, he is more likely to discuss future simulation projects.

The discussion should include the contents from Stage one-“Establish need for

simulation” to Stage four-“Simulation team and time scale” as explained in

previous sections. After the four stages are completed, the project goes to “Pre­

implementation” again; hence the SimLean framework forms a loop.

F ig u re 4 - 9 S im L ea n S ta g e S ev en

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4 .4 F E A T U R E S O F T H E S IM L E A N F R A M E W O R K

4 .4 .1 SYSTEM A TIC

SimLean framework contains seven stages, which cover the whole lean project

cycle from “qualify need for simulation” to “post implementation”, and the

structure is clear, coherent and comprehensive.

First of all, distinctions between the seven stages are very clear, each stage has

highly summarized the central theme of the stage, and there is no functional

overlap or cross. Therefore, the structure of SimLean framework is very clear,

which makes.it easy to understand and implement.

Secondly, not only does the division of the seven stages have clear significance,

but also it is arranged in execution time sequence, which makes it time

continuous. For instance, stage one - “Qualify need for lean” is the basis and

foundation of all the other stages, and stage two - “Set simulation objectives”

can not be conducted Until the completion of stage one. Similarly, stage three

“Leadership commitment” can not begin until stage two finishes. Stage seven

“Post implementation” is the last step in project execution, where review and

evaluation about the results achieved after the whole implementation are made

and future projects are discussed. As a result, the time continuity of SimLean

framework has greatly enhanced its practical feasibility.

Thirdly, SimLean framework includes all the essential elements in “ INPUT” and

“OUTPUT” sections of each stage. Input elements are people or activities

required at the beginning of each stage; and output elements are results

achieved in the end of each stage. The detailed items summarized in “ INPUT”

and ’’OUTPUT” sections provide a good reference for the actual implementation.87

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To sum up, SimLean is a systematic reference framework with clear, coherent

and comprehensive structure.

4 .4 .2 G EN ERIC AND HO LISTIC

SimLean framework has wide applicability. No matter the size of the company is

small or large; the type of the main products is food or steel; lean experience of

the company is entry level or repeat user; the area of simulation application is

within the entire business or just on a specific area; complexity level of the

process is low or high; and company strategy of implementation is a quick

project or a durable project, SimLean can serve as a suitable reference

framework for the company. Therefore, SimLean is a generic and holistic

framework for embedding simulation in lean projects.

4 .4 .3 O VER C O M E M A JO R C H A LLEN G ES

SimLean framework has simplified, facilitated and standardized simulation

embedding process in lean projects, which has not been achieved before.

McClellan (2004) stated that making an accurate simulation model is very

difficult because of the tremendous amount of factors in a normal manufacturing

system. From literature review and company interviews, the author has found

out that among the dozens of lean tools, VSM (value stream mapping) is an

easy technique to visualise a whole and complex manufacturing system, identify

wastes and their sources and guide improvement efforts (Rother and Shook,

1999).

Hence, the researcher tried to combine VSM method with simulation technique

to simplify model building process for lean projects. Then another problem was

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found out that there was no uniform way of modelling VSM, and the reliability of

simulation models depends on modeller’s experience.

In order to solve problems mentioned above, a customised simulation

environment (including SimVSM template in Arena and VisVSM template in

Visio) is proposed in Chapter five. SimVSM Is a customised simulation template

for VSM modelling, which contains eleven modules corresponding with VSM

icons, integrates up to 23 blocks in logic design of each module. Instead of

dragging up to 23 blocks to accomplish some task, users only need to drag one

module out from SimVSM template to achieve the same function. VisVSM is an

interface in Visio software, which is designed to provide ease of building

simulation models for non-expert users. Therefore, the proposed SimVSM

template has simplified, facilitated VSM model building process, and provided a

type of standard way to embed simulation technique in lean projects.

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5 C U S T O M IS E D S IM U L A T IO N E N V IR O N M E N T

5.1 IN T R O D U C T IO N

In previous chapter, the development of a reference framework for embedding

simulation technology in lean manufacturing was conducted. Last chapter also

presented that stage five in SimLean framework - Pre-implementation is the

most time-consuming and laborious stage, where simulation model building

takes place. In order to simplify, facilitate and standardize modelling process, a

customised simulation environment is proposed in this chapter.

Hence, Chapter five aims to develop a customised simulation environment for

implementing the SimLean framework presented in Chapter four.

In order to achieve the above aim, this chapter has been structured as following.

An overview of Arena template developer system is outlined and discussed in

Section 5.2; Section 5.3 presents the development process of the customised

simulation environment; Section 5.4 explains the determination process of VSM

modules for simulation template in Arena developer system; Section 5.5

describes the detailed design of template modules which were focused on

single product, single supplier, single customer and non-paralleled processes;

after conducting further review of VSM, it was found out that in order to deal

with complex situations, multiple products, multiple suppliers, multiple

customers and paralleled processes need to be included in the SimVSM

template, and Section 5.6 describes the necessary changes to the model logic;

Section 5.7 demonstrats the development of Visio interface - VisVSM template;

Verification and validation of each individual module in the proposed system is

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presented in Section 5.8; and finally the summary of this chapter is shown in

Section 5.9.

5 .2 O V E R V IE W O F A R E N A T E M P L A T E D E V E L O P E R

The customised simulation environment described in this chapter was

developed with the aid of Arena template developer system.

Arena provides a fully integrated environment for building, graphically animating,

verifying, and analyzing simulation models. It does so by the creation of

reusable modelling components called modules that are collected into libraries,

or templates. A module definition is created by working with five windows:

dialog design, logic, switch,.user view, and panel icon. A template window in

Figure 5-1 shows these five windows. The five buttons used to open module

definition windows (from the toolbar shown in Figure 5-1) are arranged in the

order that we find we most often work when initially building a new module; i.e.,

first defining the dialog design and logic, then switches to control turning on and

off module options, and finally the user view and panel icon graphics (Rockwell

Automation, 2005).

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F ig u re 5 -1 F ive W in d o w s fo r M o d u le D e fin itio n

To use a module in an Arena model, a panel containing the module is attached

to the Project Bar. This panel displays all of the modules that may be selected

for placement in the model. To build a model, you select a module from the

panel and place it in the model window. The graphics associated with the

module, referred to as its user view, are added to the model window (Rockwell

Automation, 2005).

5 .3 T H E S Y S T E M D E V E L O P M E N T P R O C E S S

The system development process went through three stages. First stage aims

to determine template modules; since VSM is a commonly used tool without a

uniform standard, the selection of VSM icons was based on some knowledge

elicitation technique, see Section 5.4 for detailed descriptions. Second stage of

the development process is to design the template modules; including dialog92

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design, logic design, switch edit, user’s view design, panel icon design which

are discussed in Section 5.5. Further review of VSM indicated some changes to

the module logic which is described in Section 5.6. Interface design in Visio

environment is presented in Section 5.7. Stage four is the verification and

validation of the developed system as discussed in Section 5.8.

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S T A R T

F ig u re 5 - 2 M o d u le s D e v e lo p m e n t P ro c es s

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5 .4 D E T E R M IN E T E M P L A T E M O D U L E S

Stage one of the system development process aims to analyze the functions of

static VSM icons so as to determine template modules in Arena software. In

terms of selecting VSM icons, it is important to note that even though there is no

standard set of VSM icons generally acknowledged, the most important and

fundamental icons are accepted and shown in almost any lean books and

papers.

In order to determine the suitable modules for simulation template, firstly

literature review was used to collect the function of each VSM icon. In order to

reduce confusions at this point, a set of VSM icons drafted by Visio 2007 was

selected as the prototype for this research. The descriptions of each VSM icon

were summarized by Rother and Shook (1999) and McClellan (2004) as

displayed in Table 5-1. Secondly, the researcher adopted concept sorting to get

a deeper understanding of VSM icons. After that, a few confusions came out

and the researcher discussed these problems with supervisor, who provided

great help to solve the problems and to determine the final version of VSM

modules. At last, eleven modules were selected for the customised simulation

template SimVSM. Table 5-2 lists the modules’ names and the selected VSM

icons in each module.

Because of the difference between static VSM method and dynamic simulation

technique, some VSM icons were not included in simulation environment, which

were displayed in Table 5-3.

T a b le 5 -1 S ta tic V S M Ico n s in V is io 200 7

M odules Icons D escrip tions(V isio 2007)

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Modules Icons (V isio 2007)

Descrip tions

Process

vQ/.

One process box equals an area of flow. All processes should be labelled.

Customer / Supplier

Used to show customers, suppliers, and outside manufacturing processes.

Inventory Count and time should be noted.

ShipmentTruck

^ ■ PNote frequency of shipments.

ProductionControl

Used for departments, such as Production Control.

Data Table Select shape and

type text. Yellow

handle adjusts line

spacing.

Used to record information concerning a manufacturing process, department, customer, etc.

TimelineSegment 1

It helps us separate the value added cycle time (taken from data boxes) from the non­value added time (days' or hours' supply info).

Timeline Total It is used to sum up all the "value-add" cycle times and "inventory" time and note them at the end of the timeline.

ProductionKanban

\ The "one-per-container" kanban. Card or device that tells a process how many of what can' be produced and gives permission to do so. .

WithdrawalKanban

Card or device that instructs the material handler to get and transfer parts (i.e. from a supermarket to the consuming process).

Batch Kanban — Production kanbans arriving in batches.

BatchWithdrawalKanban l l l l i i

Withdrawal kanbans arriving in batches.

Signal Kanban

v

The "one-per-batch" kanban. Signals when a reorder point is reached and another batch needs to be produced. Used where supplying process much produce in batches because changeovers are required.

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Modules Icons (V isio 2007)

Descrip tions

Kanban Post \ / Place where kanban is collected and held for conveyance.

Supermarket

A controlled inventory of parts that is used to schedule production at an upstream process.

Safety / Buffer Stock —

"Buffer" or "Safety Stock" must be noted.

FIFO Lane --------- FIFO------- ► Indicated a device to limit quantity and ensure FIFO flow o f material between processes. Maximum quantity should be noted.

Kaizen Burst

QHighlights improvement needs at specific processes that are critical to achieving the value stream vision. Can be used to plan kaizen workshops.

Physical Pullo

Pull of materials, usually from a supermarket.

Sequenced

Pull BallGives instruction to immediately produce a

predetermined type and quantity, typically one

unit. A pull system for subassembly processes

without using a supermarket.

Load Levelling oxox A production scheduling technique used in

lean manufacturing to set production to meet

customer demand.

Push Arrow ■ ■ Material that is produced and moved forward

before the next process needs it, usually

based on a schedule.

Pull Arrow — ------- > Pull materials from upstream process or

supermarket.

Manual

Information- - - - - - - - - - - - - ► For example: production schedule or shipping

schedule.

Electronic

Information

For example: via electronic data interchange.

T a b le 5 - 2 D e te rm in ed M o d u le s fo r S im V S M T e m p la te

Modules Contained VSM iconsSupplier Supplier

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Modules Contained VSM iconsTruck Shipment truck

Customer Customer, withdrawal kanban, batch withdrawal kanbanProcessVSM Production control, data box, withdrawal kanban, batch

withdrawal kanbanInventory Inventory

Supermarket Supermarket, production kanban, batch production kanban, signal kanban, kanban post, physical pull arrow

Safety stock Buffer / safety stockKaizen Kaizen burst

Sequenced pull ball

Sequenced pull ball

FIFO FIFOLoad levelling Load levelling

T a b le 5 - 3 U n s e le c te d V S M Ico n s

VSM icons Unselected reasonsTimeline segment Simulation report provides better statistical analysis about

lead timeTimeline total Simulation report provides better statistical analysis about

lead timePush arrow Simulation models use auto-connect arrows for linking

two modulesPull arrow Simulation models use auto-connect arrows for linking

two modulesManual information All schedules in simulation models are preset, no manual

info.Electronic

informationAll schedules in simulation models are preset.

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5 .5 D E S IG N T E M P L A T E M O D U L E S

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In order to simplify, standardize and facilitate model building process in Pre­

implementation stage of SimLean framework, a customised simulation

environment with eleven modules is proposed with the adoption of VSM (value

stream mapping) icons in Arena software (see Figure 5-3). Seven modules with

logic design are included in SimVSM simulation template for push and pull

states of VSM (see Table 5-4).

T a b le 5 - 4 B lo c k N u m b e r o f M o d u le s in S im V S M T e m p la te

Module Name No. o f b locks used in log ic design

Supplier 4

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Module Name No. o f blocks used in log ic design

Customer 10

Truck 3

Safety stock 4

ProcessVSM 23

Inventory 12

Supermarket 17

From Table 5-4, we can see that the customised simulation environment -

SimVSM template has packaged 4 to 23 blocks in different modules, thus

dramatically reduces block numbers used in model construction, and greatly

saves model building time and eliminate logic errors in simulation models.

5.5.1 S U P PLIER M O DULE

F ig u re 5 - 4 L o g ic C o n c e p t o f S u p p lie r M o d u le

The supplier module is used to create product entities in the model. Users can

define supplier name, entity type, supply quantity, supply interval and time unit.

After product entities are created, the logic will record the total product number

and send product entities to downstream module via “next label” (see Figure 5-

4).

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5.5.2 C U STO M ER M O DULE

F ig u re 5 - 5 L o g ic C o n c e p t o f C u s to m e r M o d u le

The customer module has two functions. In push system, it receives product

entities from upstream module, split the original batch, record the total product

number, and at last dispose all product entities. In pull state, besides the

functions applied in push state, it has other tasks - create kanban entities,

assign withdrawal kanban tag to the kanban entities, and send those wkanban

entities to upstream supermarket (see Figure 5-5).

5.5.3 TRUCK MODULE

F ig u re 5 - 6 L o g ic C o n c e p t o f T ru c k M o d u le

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Truck module is designed to transport raw materials from suppliers to

downstream manufacturers, or ship products to customers. Product entities

arriving at truck module are grouped Into batches, delayed for a certain time for

transportation, and sent to downstream module in the end. Users can set up

parameters such as truck name, transport time and truck batch size (see Figure

5-6).

5.5.4 SAFETY STOCK MODULE

F ig u re 5 - 7 L o g ic C o n c e p t o f S a fe ty S to c k M o d u le

Safety stock module is designed to protect downstream operations from being

starved due to currently out-of-control process variances. Product entities are

created and grouped into batches, waiting for the trigger point or signal from

downstream module; when the trigger point is reached, pre-defined amount of

product entities are sent to downstream module immediately via “next label”.

Module parameters include stock name, stock quantity, next process name,

product batch and trigger point (see Figure 5-7).

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5.5.5 PR O C ESSVSM M O DULE

F ig u re 5 - 8 L o g ic C o n c e p t o f P ro ce s sV S M M o d u le

There are two parts of ProcessVSM logic design. One part is focused on

processing products, while the other part is responsible for dealing with kanban

signals. For instance, in push state, after the product entities arriving at this

module, the original batch is split, and each product entity goes through

manufacturing process, as shown in Figure 5-8. If the product is qualified, the

entity goes to downstream module via “next label” link; otherwise if the product

is scrapped somehow, it couldn’t go to the next module and the entity will be

disposed immediately.

If the system is in pull state, the ProcessVSM module will receive kanban

entities from downstream supermarket module, then assign production kanban

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tag to kanban entities, and send those kanban entities to upstream supermarket

module to ask for more raw materials. Meanwhile, the scraped products will be

grouped into product batches permanently, assigned kanban attribute, and

these newly created kanban entities will be sent to upstream supermarket.

There are ten parameters to set up in this module: process name, product batch,

capacity, variations, scrap rate (0-1), cycle time (sec), changeover time, uptime

(1-100), upstream supermarket, and system type (push or pull).

5.5.6 IN VEN TO R Y M O DULE

F ig u re 5 - 9 L o g ic C o n c e p t o f In v e n to ry M o d u le

The inventory module is used in push system. When product entities arrive at

inventory module, the original batches will be split into individual entities, then

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grouped into “product batches”, and wait for two conditions to be met. If the

resource is available in downstream process, meanwhile the released entities

have not exceeded the daily demand^ it will send product entities to downstream

module, otherwise the products will keep waiting. There are six parameters to

fill in: inventory name, inventory quantity, next process, entity type, product

batch and daily demand (see Figure 5-9).

5.5.7 S U P E R M A R K ET M O DULE

F ig u re 5 -1 0 L o g ic C o n c e p t o f S u p e rm a rk e t M o d u le

Supermarket module is used in pull system. The logic design includes two parts:

kanban logic and product logic. The left part shown in Figure 5-10 is the kanban

logic. When kanban entities arrive at Supermarket module, a decide block is

used to determine whether or not the upstream process exists; If so, the kanban

entities are sent to upstream process, if not, the kanban entities are disposed.

The product logic is shown on the right side of Figure 5-10. Firstly, product

entities arrive at supermarket module, after that, the original batch is split into

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individual product entity, then entities are grouped into batches and waits for

withdrawal kanban signal, and after receiving the withdrawal kanban signal, the

individual entities are sent to downstream process via “next label” link.

Six operands are designed in this module, which include store quantity,

supermarket name, upstream process, product batch, entity type and daily

demand.

5 .6 T E M P L A T E M O D IF IC A T IO N

Further review of VSM indicated that in complex situations, multiple products,

multiple suppliers, multiple customers and paralleled processes need to be

included in the template. This section describes the modifications made to four

modules in SimVSM template.

The modified modules are customer, inventory, supermarket and ProcessVSM.

Table 5-5 lists the block number in the modified four modules. The new dialog

design of ProcessVSM module, Inventory module and Supermarket module are

shown in Appendix C.

T a b le 5 - 5 B lo c k N u m b e r o f M o d ifie d M o d u le s in S im V S M T e m p la te

Module Name No. of blocks used in logic design

Customer 10

ProcessVSM 38

Inventory 23

Supermarket 39

From Table 5-5, we can see that except Customer module, the other three

modified modules contain more blocks than the original version (as shown in

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Table 5-4). The changes in logic design of the four modules are presented as

follows.

5.6.1 C U STO M ER M O DULE M O DIFICATION

F ig u re 5 -1 1 L o g ic C o n c e p t o f M o d if ie d C u s to m e r M o d u le

The change to the customer module is in Kanban logic section as shown in

Figure 5-11. In the original version, only one product can be manufactured in

the system, thus the kanban entity has only one mission - to send signal to the

upstream supermarket. However, in the modified system, up to three products

can be processed in the system at the same time, which requires the customer

module to distinguish the product type on the kanban entity; therefore an

attribute of signal type has been assigned to the kanban entity.

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5.6.2 IN VEN TO R Y M O DULE M O DIFICATION

F ig u re 5 -1 2 L o g ic C o n c e p t o f M o d ifie d In v e n to ry M o d u le

Modifications to the inventory module include two parts’ First part is “group into

batches”; to deal with multiple products in one inventory module, the logic has

to batch the products of the same entity type. Secondly, considering that

different products might go to different process modules, they should be placed

in different wait blocks in the inventory module, and the following decide

modules, scan modules and exit points have to be separated for different

products as well (see Figure 5-12).

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There are six new parameters to fill in on the module dialog: entity type2, next

process2, inventory quantity2, entity type3, next process3 and inventory

quantity3.

5.6.3 SU P ER M A R K ET M O D U LE M O DIFICATION

F ig u re 5 - 1 3 L o g ic C o n c e p t o f M o d ifie d S u p e rm a rk e t M o d u le

The logic design of Supermarket module contains two parts: kanban logic and

product logic (Figure 5-13). Both parts need modifications. For kanban logic

section, after kanban entities arrive there, a decide module will send them to

different signal blocks according to their attribute - signal type. After passing the

signal blocks, the following decide blocks and route blocks have both been

multiplied to suit the multi-product / multi-process requirement. In the product

logic section, after been batched by entity types, the products are sent to

different wait blocks according to their signal types. After that, the products are

sent to different downstream processes via different exit points.

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Six operands are added to this module, which include entity type2, upstream

process2, store quantity2, entity type3, upstream process3 and store quantity3.

5.6.4 PROCESSVSM MODULE MODIFICATION

F ig u re 5 -1 4 L o g ic C o n c e p t o f M o d ifie d P ro ce s sV S M M o d u le

There are three modifications to the ProcessVSM logic design (see Figure 5-14).

One part is in the kanban logic section. After kanban entities arrive in the

module, they are sent to different assign blocks by their “signal type” attribute,

then they will go to different assign blocks to assign production kanban tag,

after that, they are transported to different process modules via different route

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blocks. Part two of the modifications lie in product processing logic. If the

products are not scraped, a decide block will decide where to send them

referring to the entity types; after that, different assign blocks and exit points are

designed for different product entities. The last part of the change is in the

scraped products logic; in pull state, the scraped products are not disposed

directly, instead they are grouped into batches and assigned attribute - signal

type according to their original entity types; then the entity type is changed to

kanban and these kanban entities are sent to assign blocks in the kanban logic

section.

There are four new parameters added up to this module: entity type2, upstream

supermarket2, entity type3 and upstream supermarkets.

5 .7 T E M P L A T E IN T E R F A C E IN V IS IO

In previous section, a customised simulation template for VSM modelling -

SimVSM was developed. It has achieved the task of simplifying, facilitating and

standardizing modelling process in lean projects. In order to further increase the

ease of operation of the SimVSM template, an interface in Visio is proposed

and described in this section.

Section 5.7 has been structured as follows: Section 5.7.1 presents an overview

of Arena interface to Visio applications; Section 5.7.2 illustrates the structure of

process simulator; Section 5.7.3 explains the development of VisVSM template;

and Section 5.7.4 describes the editing of mapping file which links SimVSM.

template and VisVSM template.

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5.7.1 A R E N A INTER FA C E TO V ISIO A PPL IC A T IO N S (RO C K W ELL

A U TO M A TIO N , 2005)

Arena supports the importing of Visio Drawing files. Rockwell Software, Inc. is a

Visio Business Partner and has worked closely with Visio Corporation to provide

an integrated, high quality, flexible interface to the . industry-leading Visio

application.

This interface features include:

• Support for conversion of any Visio shape (including custom shapes) to

any Arena module (including custom modules).

• Support for copying any shape custom property data to any module

operand value.

• Convert Hierarchical Visio Drawings to Hierarchical Arena models.

• A Visio Process Simulator for linking directly to Arena's Basic Process

panel.

Software Architecture is shown in Figure 5-15:

The Visio Link is launched via the Import Visio Drawing item on Arena's File

menu. After you select the Visio drawing to be imported, the Visio Link creates a

new Arena model file containing modules and drawing objects (lines, boxes,

etc.) that correspond to the objects in the Visio drawing. To decide what

modules should be placed in the model, the Visio Link looks in the active map

file, which lists a set of Visio shapes and the target modules that should be used

in Arena.

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F ig u re 5 - 1 5 A re n a S o ftw a re A rc h ite c tu re

5.7.2 PROCESS SIMULATOR INTRODUCTION (ROCKWELL

AUTOMATION, 2005)

Arena software includes a Visio Process Simulator. This simulator consists of a

custom Visio stencil and template that map directly to simulation constructs in

Arena's Basic Process panel. If you have Arena Basic Edition or are primarily

developing models in the Basic Process panel, the Visio Process Simulator

provides an easy way to flowchart a process in Visio and import the drawing

into Arena.

The Visio Process Simulator includes a custom Visio stencil and template

(Process Simulation.vss and Process Simulation.vst) that allow you to map and

define business processes in Visio drawing files, then easily export these

drawings to Rockwell Software’s Arena software for dynamic simulation.

Rockwell Software, Inc. has worked closely with Visio Corporation (now

Microsoft) to provide an integrated, high-quality, interface to the industry-leading

Visio application.

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The Visio Process Simulator requires Visio Professional version 2002 or 2003.

Before opening the stencil, it is necessary to have an administrator on the

machine to set the Visio macro security options to Low so that macros will be

enabled.

F ig u re 5 - 1 6 P ro ces s S im u la tio n A p p ro a c h

Figure 5-16 shows the process simulation approach using Process Simulation

Template. The detailed descriptions are illustrated below:

1). Flowchart your process and data in Visio using the Process Simulation

stencil and template.

2). Export your drawing to the Arena simulation system by clicking “Simulation

Drawing” off of the “Simulation” menu in Visio.

3) Analyze the performance of the process via dynamic animation. Watch the

drawing come “alive”. Enhance the model using Arena’s graphical flow charting

tools (similar to Visio).

5.7.3 VISVSM TEMPLATE DEVELOPMENT

Process simulator provides great convenience in model construction via Visio

interface. However, to create a customised VisVSM template in Visio, we can

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not use Process Simulator directly, instead, some changes have to be made to

the Simulator. Figure 5-17 shows the development process of VisVSM template.

F ig u re 5 -1 7 V is V S M T e m p la te D e v e lo p m e n t

Firstly, open Process Simulation.vst defined in the Visio Process Simulator

which customised a “SIMULATION” menu in VISIO to enable the exporting of

VISIO drawing to Arena immediately.

Secondly, create and save the VisVSM stencil. Since VSM stencil has been

defined in VISIO 2007 professional version, here we just modify the existing

VSM stencil to the VisVSM stencil. The steps are described as following:

Instead of clicking Open immediately, click the drop-down arrow on the Open

button and choose Copy from the drop-down menu. Visio opens a copy of the

stencil in the Shapes window using a default name, such as StenciM. The icon

in the stencil title bar includes an asterisk, indicating that the stencil is editable.

To save the new stencil, right-click the stencil’s title bar and choose Save from

the shortcut menu. In the Save As dialog box, type VisVSM for the stencil and

then click Save.

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Thirdly, add shapes to the VisVSM stencil. Since the SimVSM template in

Arena has organized all VSM icons into eleven modules, correspondingly the

VisVSM stencil needs only eleven masters in it, so we need to delete the

unwanted thirteen icons and then add a new master named Supplier. Right-click

inside the VisVSM stencil window and choose New Master. In the New Master

dialog box, specify the master name as Supplier, edit graphics and change the

icon image.

Step four is to create and customise shapes. After finishing step three, eleven

shapes are created in the VisVSM stencil. However, some modifications still

need to be made, such as renaming the master, modifying master graphics and

changing the icon image.

Last but not least, edit the custom properties in each shape. In order to store

data in shapes of the VisVSM stencil, you must first create custom properties

and then associate them with the masters or shapes. In Visio 2007 environment,

when editing the master shape, right-click the current shape, select data ->

shape data -> define shape data now, and define new properties for each

shape by specifying options, as shows in Table 5-6 (Biafore, 2004).

T a b le 5 - 6 C u s to m P ro p e r ty O p tio n s

OPTION DESCRIPTIONLabel Consisting of alphanumeric characters and underscore characters,

the label is the name of the custom property and appears next to the field in which you enter the property value.

Type The data type for the property, including String,' Number, Fixed List, Variable List, Boolean, Currency, Date, and Duration.

Language Specifies the language to correctly format the date and time when you create a Date property. For example, English (U.S.) uses mm/dd/yy, whereas English (U.K.) uses dd/mm/yy.

Calendar Specifies whether to use the Arabic Hijri (Islamic), Hebrew Lunar (Jewish), Saka Era (Hindu), or Western (Gregorian) calendar to convert a date entered in a Date property.

Format The format for the data type. The options available depend on the type and Calendar options selected. You can select from lists of

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OPTION DESCRIPTIONpredefined formats when you define data types such as String, Number, Fixed List, Variable Lit, Currency, Boolean, Date, and Duration.To specify fixed lists or variable lists, type each item in the list separated by semicolons. For example, you can create a colour list by entering red;white;blue. If you create a fixed list, you can only select one of the entries on the list. With variable lists, you can enter another value, such as green.

Value Specifies the initial value for the property. For existing properties, this box shows the current value. Omit this value if you want the property to be blank initially.

Prompt Specifies text that appears when you select the property in the Custom Properties dialog box or pause the pointer over the custom property label in the Custom Properties window. You can use the prompt to see a description of the property or instructions on its use.

Properties Displays the existing custom properties for a shape. When you select a property in the list and modify it, Visio applies the changes you make to its definition immediately.

New Creates a new custom property.Delete Deletes the custom property selected in the Properties list.

According to the descriptions listed in Table 5-6, custom properties are defined

for the eleven masters in VisVSM stencil, and the details are presented in

Appendix D.

5.7.4 MAPPING FILE EDITTING

When Arena creates a new model from a Visio drawing, it uses the active map

file to decide which Arena module to place for each Visio shape. A map file is

simply a list of Visio shapes and Arena modules, along with a detailed mapping

from one to the other, including the mapping of Visio shape custom properties

to Arena module operand values.

The default map file used by Arena is called Arena Basic.map. This pre-defined

map file links Visio shapes in the Process Simulation stencil (provided by

Rockwell Software) to Arena modules in the Basic Process template. Thus, you

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can use the Process Simulation stencil to map and define business processes

in Visio drawing files, and then easily export these drawings to Rockwell

Software’s Arena software for dynamic simulation.

In addition to the Arena Basic map file, you can create other map files to serve

as blueprints for the transfer of shapes and data from other Visio stencils (e.g.,

the Basic Flowchart stencil). To do this, go to Tools/OptionsA/isioOptions in

Arena. Leave the File Name prompt for the Visio Shape Mapping File blank and

click the Edit button (see Figure 5-18). This action will load the Shape Map

Editor where you can create a new mapping. When done, save this new map

file with a different name, then close the Shape Map Editor. Make sure that your

new map file is shown on Arena's Tools/OptionsA/isioOptions page in order for

the map file to be used the next time you import a Visio drawing. The actual

mapping file for this customised simulation environment is shown in Appendix E.

P roject Parameters

D eb ugging

R eplicatio n Parameters

T em plate D evelo pm ent

Settings ] D raw ing } D X F Options | Folders i Ed it L ayers i R u n Layers

R u n S p e ed | R u n Control | A rray S izes V isio Options I Reports

Defau lts

F3e Name:

V isio S h ap e M apping F ile ------------------ ------- ------------------- ---------— —

_ . . Browse... Edit...Foe Nam e: -------------- ------- ------------------■— I

Import O ptio ns ------------------------------------- -----------------------------------------

F M a p Sub-drawings F M ap N o n-Stenc il D raw S h apes

F W a rn o n M apping Errors

S c a le Factor: Horizontal: ] g" Vertical: p f

OK C ancel He lp

F ig u re 5 -1 8 V is io S h a p e M a p p in g F ile

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5 .8 V E R IF Y A N D V A L ID A T E S IM V S M T E M P L A T E

In order to verify and validate each module in SimVSM template, simulation

models have been built with each individual module from SimVSM template

together with the modules from Basic template. Since the modules in Basic

template have already been verified and validated by Rockwell Software, the

verification and validation of each module from SimVSM template can be

achieved through constructing models with the verified modules in Basic

template. For instance, to test the Supplier module in SimVSM template, the

researcher has built a simple VSM simulation model with Supplier module from

SimVSM template and other modules from Basic template, then analyze the

results; after that, the researcher tries to build some complex VSM models with

Supplier module from SimVSM template to further verify and validate it.

It is worth mentioning that verifying and validating small modules doesn’t mean

that the whole model is verified and validated; to verify and validate the whole

model logic requires more laborious experimentations, such as to construct big

models with all required modules from the customised simulation template.

After this step, all the 11 modules in SimVSM template have been verified and

validated.

5 .9 S U M M A R Y

A description has been made on the development of a customised simulation

environment for embedding simulation technique into lean projects. The

developed system consists of a customised simulation template for VSM

modelling in Arena software and an interface of the developed SimVSM

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template in Visio software. The system provides a fast and accurate modelling

of VSM that is in common use of lean projects. Moreover, the interface in Visio

software as described in Section 5.7 is perceived as a useful tool to simplify and

facilitate VSM modelling. The verification and validation of each individual

module in SimVSM template is shown in Section 5.8. Therefore, this chapter

has demonstrated the accomplishment of research objective number four as

stated in Section 1.3; developing the reference framework to embed simulation

in lean projects. The research objective contributes to the accomplishment of

the research questions presented in Section 3.1 which presumes that

developing a reference framework about embedding simulation in lean projects

would motivate companies’ adoption of simulation technique.

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6 E V A L U A T IO N O F T H E R E F E R E N C E F R A M E W O R K

In this chapter, a description of the evaluation of the SimLean and the

developed customised simulation environment is conducted. The essence of

evaluation stems from the fact that, research work must be tested for

worthiness or merit. Since stage one to stage four of SimLean framework has

been validated by best practices from elsewhere, the focus of the evaluation

work lies in the customised simulation environment. Murphy and Perera (2001)

identified a list of best practices to guide the implementation of simulation from

their studies on how simulation has successfully been used in U.S. companies.

They suggested that UK companies should follow these best practices in order

to encourage the use o f simulation more openly. What’s more, Mclean and

Leong (2001) also agreed that some best practices (e.g. standardising building

blocks and data interfaces in model developing process) can reduce project

costs and time which finally increase the accessibility to the use of simulation.

The reminder of the chapter is structured as follows. Section 6.1 explains how

the case studies are designed for the evaluation of the developed system. In

Sections 6.2 to 6.6, details of the evaluation process including key

measurements, simulation scene and results analysis are presented and

discussed. These sections also highlight the number of blocks saved through

the use of the customised simulation environment, which infers a lot of time

saving at the same time. The key observations derived from the evaluation

exercises are summarised in Section 6.7.

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6.1 D E S IG N O F C A S E S T U D IE S

To evaluate the developed system’s usability, and its effectiveness in assisting

the embedment of simulation technique in lean manufacturing, a number of

case studies were employed to test the validity of the customised simulation

environment. Five case studies were performed at different levels in this

process. The details are listed as following:

Level 1: Case study one is a push system of single product, single supplier,

nonparallel process, and single customer;

Level 2: Case study two is a pull system of single product, single supplier,

nonparallel process, and single customer;

Level 3: Case study three is a push system of single-product, multi-suppliers,

nonparallel process, and single-customer;

Level 4: Case study four is a push system of multi-products, multi-suppliers,

paralleled processes and multi-customers;

Level 5: Case study five is a pull system of multi-products, multi-suppliers,

parallel processes and multi-customers.

The definitions of our key measurements are given as follows:

• Production Lead Time (PLT)

• Value Added Time (VA/T)

• Process Cycle Efficiency (PCE)

• Resource utilisation

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Through experimentation with the five case studies, simulation results were

obtained under different conditions and compared with static VSM.

6 .2 C A S E S T U D Y O N E

6.2.1 VSM DESCRIPTION

Case study one is a push system which contains single product, single supplier,

nonparallel process, and single customer. Static VSM describes PB&J

manufacturing which produces sandwiches (Pereira, 2008), and the

manufacturing processes consist of material purchasing from supplier, Peanut

Butter Application, Jelly Application, Packaging process and finally shipping to

Customer (as shown in Figure 6-1). We use this case study to demonstrate the

easiness of building a simulation model of VSM with the customised simulation

template.

1 days 0 .5 1 3 days 0 .69 4 d a /s 0 .1 8 3 days P L T = 2 .39 days

25 secs. J L 3 0 secs. J L 4 2 secs I I I V A V T = 9 7 secs.

P C E = 0 .1 5 %

F ig u re 6 -1 S ta tic V S M o f C as e S tu d y 1

Production data o f PB&J is listed below:

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6 .2.2

Daily demand: 700 pieces

Hours per shift: 8

Break minutes per shift: 30

Shifts per day: 1

Days per week: 5

THE SIMULATION SCENE

As shown in Figure 6-2, one supplier module, four inventory modules, four

processVSM modules and one customer module have been used to simulate

case study one. The picture above in Figure 6-2 is the Visio drawing of case

study one; and the one below is the simulation model generated from Visio

drawing. Three scenarios have been designed as following:

Scenario A: scrap rate = 0; variation = 0; run time = 22 days;

Scenario B: scrap rate = 5%; variation = 5 sec; run time = 22 days;

Scenario.C: scrap rate = 0: variation = 0: run time = 252 days.

Results obtained from the above three scenarios are compared with static VSM

as presented in Table 6-1.

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125

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6.2.3 RESULTS AND FINDINGS

The crucial purpose of developing a customised simulation environment is to

shorten modelling time as well as to eliminate logic errors in model constructing

process. With reference to Table 5-5 and Section 6.2.2, we can see that the

model of case study one has used 154 blocks which have been packaged into

10 modules, and the adoption of the SimVSM template has save 144 blocks,

the saving rate is over 93%.

Through the data comparison of static VSM and simulation results as shown in

Table 6-1, we can see that simulation provides more comprehensive data, and

helps discover more problems in the system. For instance, resource utilization

in scenario A, B and C all indicate that packaging process is a bottleneck of the

system; the extremely high quantity of inventory 3 in scenario C also indicate

that the downstream process has slowed down the whole process which blocks

so many products; the difference between scenario C and the other two also

indicates that the system is not stable, which leads to the diversity of short-term

data and long-term data.

6 .3 C A S E S T U D Y T W O

6.3.1 VSM DESCRIPTION

Case study two is a pull system which contains single product, single supplier,

single process, and single customer. Static VSM describes the “future state” of

PB&J manufacturing (see Figure 6-3) which contains supermarket and kanban.

It is based on the logic that nothing will be produced until it is needed. The U-

shaped flow line is a combination of Peanut Butter Application, Jelly Application

and Packaging operations. The supplier ships raw material to the supermarket127

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every two days, and customer requires a product every 38.6 seconds.

Production data of PB&J is listed below:

• Daily demand: 700 pieces

• Hours per shift: 8

• Break minutes per shift: 30

• Shifts per day: 1

• Days per week: 5

• Takt Time: 38.6 sec

Customer Demand:7 0 0 p iece s p e r D a y

(T a k t T im e 3 8 .6 se c o n d s )

P B & J C e ll

0 .5 days 0 .5 days

T o ta l C /T = 9 7 secs

0 .5 d ays 0 .5 d ays P L T = 1 d ay s

97 sec s .

F ig u re 6 - 3 S ta tic V S M o f C a se S tu d y 2

128

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6 .3 .2 T H E S IM U L A T IO N S C E N E

| S u p p l i g T j

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F ig u re 6 - 4 S im u la tio n S c e n e o f C a s e S tu d y 2

As shown in Figure 6-4, one supplier module, one truck module, two

supermarket modules, one processVSM module and one customer module

have been used to simulate case study two. The picture above in Figure 6-4 is

the Visio drawing of case study two; and the one below is the simulation model

generated from Visio drawing. Three scenarios have been designed as

following:

Scenario A: scrap rate = 0; variation = 0; run time = 22 days;

Scenario B: scrap rate = 5%; variation = 5 sec; run time = 22 days;

129

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Scenario C: scrap rate = 0: variation = 0: run time = 252 days.

Results obtained from the above three scenarios are compared with static VSM

as presented in Table 6-2.

130

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Firstly, we can calculate the efficiency of template adoption. With reference to

Table 5-5 and Section 6.3.2, we can see that the model of case study two has

used 74 blocks which have been packaged into 6 modules, and the adoption of

the SimVSM template has save 68 blocks, the saving rate of building blocks is

over 91%.

Through the data comparison of static VSM and simulation results as shown in

Table 6-2, we can see that simulation data do not have big difference, which

indicate that case study two is almost a stable system. The resource utilization

of 80% means that no bottleneck exists in the system. The only difference in the

quantity of supermarket 2 in the three scenarios is caused by the customer

demand during break times, which has resulted in a temporary shortage of

replenishment for supermarket s . The stocks decline in supermarket 1 and

supermarket 2 in scenario C compared with data in scenario A indicate that the

customer demand rate is a little faster than the system’s actual production rate.

6 .4 C A S E S T U D Y T H R E E

6.4.1 VSM DESCRIPTION

Case study three is a push system which contains single product, multiple

supplier, single process, and single customer. Static VSM describes aluminium

extrusion process (http://www.leanmanufacture.net/vsm.aspx). The

manufacturing processes (as shown in Figure 6-5) consist of material

purchasing from two suppliers, reheating furnace, extraction mill, oven, roll

corrector, cleaning, edging and finally shipping to Customer. We use the case

6 .3 .3 R E S U L T S A N D F IN D IN G S

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study to demonstrate the VSM modelling of multi-suppliers. Production data of

aluminium extrusion process is listed below:

Daily demand: 9 pieces

Hours per shift: 8

Break minutes per shift: 30

Shifts per day: 3

Days per week: 5

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siJDyi

133

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6 .4 .2 T H E S IM U L A T IO N S C E N E

A B A B A B A B A Ht m i l w l I - - - - - - - - - - - - - 1 I I - - - - - - - - - 1 f t - - - - - - - - - 1 1 - - - - - - - - - - 1 0 » i I — — I I — I c 1 Iii» i i w $ 1 - - - - - - - - - - 1 e t a I -

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As shown in Figure 6-6, two supplier modules, three truck modules, five

inventory modules, six processVSM modules and one customer module have

been used to simulate case study three. The picture above in Figure 6-6 is the

Visio drawing of case study three; and the one below is the simulation model

generated from Visio drawing. Three scenarios have been designed as

following:

Scenario A: scrap rate = 0; variation = 0; run time = 22 days;

Scenario B: scrap rate = 5%; variation = 1 min; run time = 22 days;

Scenario C: scrap rate = 0: variation = 0: run time = 252 days.

Results obtained from the above three scenarios are compared with static VSM

as presented in Table 6-3.134

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135

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With reference to Table 5-5 and Section 6.4.2, we can see that the model of

case study 3 has used 225 blocks which have been packaged into 17 modules,

and the adoption of the SimVSM template has save 208 blocks, the saving rate

is over 92%.

The data comparison of static VSM and simulation results in Table 6-3 indicates

that this is a non-balanced system. The resource utilization in three scenarios

shows that even though no bottlenecks exist in current system, the work load is

not balanced at all; workers in Oven process is much busier than all other

departments. From comparison of lead time and inventory 1 data between

scenario A and scenario C, we can see that some bottleneck has slowed down

the whole process, which results in the accumulation of products in inventory 1

as time goes by.

6 .5 C A S E S T U D Y F O U R

6.5.1 VSM DESCRIPTION

Case study four is a push system which contains multiple products, multiple

suppliers, paralleled processes, and multiple customers. Static VSM describes

complex manufacturing process (http://operationsresources.com/id3.html). The

manufacturing processes (as shown in Figure 6-7) consist of material

purchasing from three suppliers, fabric cutting, sewing, upholstery, final assy,

frame assy, foam assy, foam cutting and finally shipping to two customers

separately. We use the case study to demonstrate the VSM modelling of multi­

products, multi-suppliers, paralleled processes and multi-customers in a push

system. Production data of case study four is listed below:136

6 .4 .3 R E S U L T S A N D F IN D IN G S

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Daily demand of product D: 100 pieces

Daily demand of product T: 100 pieces

Hours per shift: 8

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F ig u re 6 - 7 S ta tic V S M o f C ase S tu d y 4

137

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6 .5 .2 T H E S IM U L A T IO N S C E N E

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As shown in Figure 6-8, three supplier modules, three truck modules, ten

inventory modules, nine processVSM modules and two customer modules have

been used to simulate case study four. The picture above in Figure 6-8 is the

Visio drawing of case study four; and the one below is the simulation model

generated from Visio drawing. Three scenarios have been designed as

following:

138

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Scenario A: scrap rate = 0; variation = 0; run time = 22 days;

Scenario B: scrap rate = 5%; variation = 5 sec; run time = 22 days;

Scenario C: scrap rate = 0: variation = 0: run time = 126 days.

Results obtained from the above three scenarios are compared with static VSM

as presented in Table 6-4.

139

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6 .5 .3 R E S U L T S A N D F IN D IN G S

With reference to Table 5-5, Table 5-6 and Section 6.5.2, we can see that the

model of case study four has used 613 blocks which have been packaged into

27 modules, and the adoption of the SimVSM template has save 586 blocks,

the saving rate is over 95%.

From resource utilization statistic of three scenarios as shown in Table 6-4, it is

indicated that employees have not reached their full capacities; meanwhile the

work flow is not balanced between different processes. High stock quantity in

inventory 2, inventory 4 and inventory 8 suggests that the processes after them

has slowed down the whole manufacturing process.

6 .6 C A S E S T U D Y F IV E

6.6.1 VSM DESCRIPTION

Case study five is a pull system which contains multiple products, multiple

suppliers, paralleled processes, and multiple customers. Figure 6-9 depicts a

future state value stream map that includes kaizen starbursts for environmental

improvement opportunities as well as changes to establish a “pull” system to

control inventory levels and to improve production flow

(http://epa.gov/lean/toolkit/ch3.htm). Static VSM describes that the “future state”

of the manufacturing company (see Figure 6-9) contains supermarket and

kanban. Supplierl and supplier2 ships raw materials every two weeks to the

supermarket, the materials go through milling, welding, painting, assembly and

inspection four processes, and finally are transported to customer A and

customer B separately. Production data of case study five is listed below:

141

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• Daily demand of product A: 40 pieces

• Daily demand of product B: 40 pieces

• Hours per shift: 8

• Break minutes per shift: 30

• Shifts per day: 3

• Days per week: 5

• Takt Time of Customer A: 0.57 hrs

• Takt Time of Customer B: 0.57 hrs

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C /T = 4 m in C /O = 3 h r

U p tim e = 6 1 %

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m A s s e m b ly & x / ^ ' / In s p e c t io n

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T o ta l M a te r ia ls U s ed < 1 5 0 lb s

M a te r ia ls N e e d e d « 1 1 0 lb s

F ig u re 6 - 9 S ta tic V S M o f C a se S tu d y 5

6.6.2 THE SIMULATION SCENE

As shown in Figure 6-10, two supplier modules, four truck modules, five

supermarket modules, four processVSM modules and two customer modules

142

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have been used to simulate case study five. The picture above in Figure 6-9 is

the Visio drawing of case study five; and the one below is the simulation model

generated from Visio drawing. Three scenarios have been designed as

following:

Scenario A: scrap rate = 0; variation = 0; run time = 22 days;

Scenario B: scrap rate = 5%; variation = 1 min; run time = 22 days;

Scenario C: scrap rate = 0: variation = 0: run time = 252 days.

Results obtained from the above three scenarios are compared with static VSM

as presented in Table 6-5.

F ig u re 6 - 1 0 S im u la tio n S ce n e o f C a s e S tu d y 5

143

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With reference to Table 5-5, Table 5-6 and Section 6.6.2, we can see that the

model of case study five has used 217 blocks which have been packaged into

17 modules, and the adoption of the SimVSM template has save 200 blocks,

the saving rate is over 92%.

Simulation results in Table 6-5 shows that this is a stable system, based on the

small difference between scenario A (short-term data) and scenario C (long­

term data). Resource utilization indicates that staffs are not fully used, and work

load is not well balanced. However, because of the characteristic of pull system

and the adoption of supermarket, the un-balanced work force does not influence

the manufacturing process.

6 .7 K E Y O B S E R V A T IO N S

The most obvious advantage of the customised simulation environment for VSM

modelling is that through adopting the template as described in Chapter five and

Chapter six, users can save large amount of building blocks as well as

modelling time. Rockwell Automation (2005) stated that the customised

simulation template can use the terminology that is appropriate for the industry

to minimize the abstraction needed for a modeller to translate a system into the

simulation software tool. The experimentation with five case studies illustrates

that up to 91% blocks can be saved during model constructing process, which

indicates that at least 91% modelling time can be saved as well (as shown in

Table 6-6).

More importantly, the customised simulation template has provided the ease of

model constructing. The interface presented to a modeller can be customized to145

6 .6 .3 R E S U L T S A N D F IN D IN G S

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be very familiar (both in terms of graphical animation and the terminology used

in- module dialogs); and parts, processes, etc., in the target application

environments can be represented accurately (Rockwell Automation, 2005),*

which has greatly increased the ease of use to non-expert users.

T a b le 6 - 6 B lo c k S a v in g s o f F ive C as e S tu d ie s

CASE BLOCKS MODULES BLOCK SAVING1 154 10 93%2 74 6 91%3 225 17 92%4 613 27 95%5 217 17 92%

What’s more, the adoption of customised template can improve the accuracy of

simulation models. Since the model logic in the template is already verified (as

presented in Chapter five), it provides better accuracy and fewer mistakes. The

model complexity increases, the likelihood of making errors increases as well.

Chwif, Barretto and Paul (2000) stated that it is intuitive that a simple model is

easier to code, validate and analyze; thus in general complexity will increase

the time to perform a simulation study (including conceptualization,

implementation and analysis). Building a reusable template or module

decreases the likelihood that you might make a mistake in reusing the original

model representation, encourages you to reuse what you have learned, and

makes it much easier for you to share with others the modelling approach you

have developed (Rockwell Automation, 2005).

Besides the three advantages mentioned above, other advantages of simulation

include its ability to answer “what i f questions, deal with complex situations, as

well as produce more accurate results than static VSM.

146

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Firstly, dynamic VSM is more accurate than static VSM. Take inventory module

for an example, the static VSM gives one value of the inventory quantity while

simulation result provides three values - minimum, average and maximum. In

the manufacturing companies, it is very important to evaluate the inventory

quantity precisely to arrange the suitable storage space, and the simulation

approach satisfies this demand.

Secondly, simulation model can predict the long-term production data, by

setting up the model run-time in Arena software. For instance, in case study 3,

the output data of 20 days running time is very different from the output data of

200 days running time, and result shows that the long-term production data is

very different from the shot-term data in the organization.

Thirdly, simulation model can demonstrate systems with multiple parameters in

the VSM. Even though static VSM has setup many parameters in the process

module, such as cycle time, variations, changeover time, scrap rate, uptime,

etc., it does not take all these factors into account when calculating the VA/T

and lead time. However, simulation model shows its power in dealing with

multiple parameters at the same time. The output data in simulation report

contains the influence of all the pre-defined operands, therefore the simulation

result is more accurate and realistic.

What’s more, simulation models can deal with very complex VSM. For some

VSM that contains more than one product or has parallel suppliers, customers,

inventories, processes or supermarkets, it is very difficult or even impossible to

calculate the VA/T, lead time and PCE correctly on a piece of paper; However,

through adopting simulation technique, the problem is solved easily. As long as

the VSM model can be constructed, meanwhile the parameters are filled in

147

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properly; the automatically generated simulation report gives all the key

statistics after running the model, which provides users with all the key

measurements of the complex system.

Last but not least, in Arena simulation environment, O p tQ u e s t software can be

used to do the parameter optimization task. For example in case study one - a

simple push system, if we change batch size in a range of [1, 10], change

workers’ capacity from 1 to 3, with the limit of 5 workers in total, after

optimization, we get minimum lead time under the premier parameter set: the

Lead Time reduced from 2.14 Days to 0.51 Days, PCE increased from 0.15% to

0.64%, and no bottlenecks in the system. In case study two - a simple pull

system, if we change batch size in a range of [1, 10], change workers’ capacity

from 2 to 5, change inventory amount in supermarket 1 and supermarket 2 in a

range of [10, 700], the optimal parameters illustrate that when batch size is

reduces to one, with workers' capacity of four, inventory amount of ten in each

supermarket, lead time can be reduced from 0.91 Days to 0.43 Days, PCE

therefore increases from 0.36% to 0.78% and operators' utilization decreases

from 81% to 59%.

148

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7 C O N C L U S IO N S A N D F U T U R E W O R K

The literature review presented in Chapter two and the analysis of interview

results discussed in Chapter three provided some research gaps, which

facilitated the development of the SimLean framework and the customised

simulation environment (including an Arena template SimVSM and a Visio

stencil VisVSM) as presented in Chapter four and Chapter five respectively.

What’s more, to test the usability and the effectiveness of the proposed

simulation environment, the evaluation process was performed through five

case studies as illustrated in Chapter six. In this chapter, all the research

findings are explained and discussed against the research aim and objectives in

Section 7. 1; Discussions about contributions to knowledge are presented in

Section 7.2; Research limitations are explained in Section 7.3 and

recommended future work is shown in Section 7.4.

7.1 R E S E A R C H O B J E C T IV E S A N D A C H IE V E M E N T S

In Chapter one it was stated that the research aim of this study was to develop

a reference framework which enables embedment of simulation in lean projects.

In order to achieve the above aim, a set of research objectives were determined

as listed below:

1. Conduct Literature Survey; 2. Develop an integrated framework to capture

the interaction between lean and simulation; 3. Establish role of simulation

within the above framework; 4. Develop the reference framework to embed

simulation; 5. Validate the reference framework.

149

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7 .1.1 A C H IE V E M E N T S O F T H E R E S E A R C H O B J E C T IV E S

The first research objective is to conduct literature survey to identify research

gaps. To achieve this goal, the research study analyzed the published works

within lean manufacturing and simulation technique, and summarized the critical

assessment of literature review as presented in Chapter two. The literature

review also identified shortcomings of lean manufacturing tools and clarified that

simulation technique might be able to overcome these limitations.

A number of different lean manufacturing tools were introduced in the

identification process of research gaps. This idea stemmed from the fact that

the currently available lean tools are not sufficient in solving dynamic and

complex problems in manufacturing systems, or precisely predicting future state

of lean projects before the actual implementation takes place. These findings

have been supported by several authors who state that simulation is

complimentary with lean methodology (Standridge and Marvel, 2006), (Bragliz,

et al. 2009), (El-Haik and Al-Aomar, 2006), (Ferrin, Miller and Muthler, 2005),

(Crosslin, 1995), (Bayle, et al. 2001), (Abbas, et al. 2006), (Adams, et al. 2999),

(Wang, et al. 2005), (Bodner and Rouse, 2007), (Huang and Liu, 2005) and

(Lian and Van, 2007).

Moreover, the literature review summarized several frameworks in the domain

of lean implementation, VSM (value stream mapping) process map and

simulation procedure. However, no framework about embedding simulation

technique in lean projects has been proposed before. This scenario therefore

suggests that many lean practitioners are in great need of a holistic reference

framework which is capable of assisting them in embedding simulation

technique in lean projects.

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The second objective is to develop an integrated framework to capture the

interaction between lean and simulation. This task required the accomplishment

of literature survey and several interviews with lean practitioners as a

supplementary process. A reference framework named SimLean is proposed

and explained in details in Chapter four.

The main role of simulation within the above SimLean framework has been

identified and established in pre-implementation stage of lean projects. A

customised simulation environment is developed to simplify, facilitate and

standardize simulation embedment in lean projects as described in Chapter five

and six repectively.

The evaluation of the customised simulation environment - SimVSM template is

accomplished through five case studies which contain different structure and

states of VSM (value stream map), as presented in Chapter six.

7.1.2 D EVELO PPIN G SIM LEAN FR A M EW O R K

The research has identified a guidance road map for simulation integration in

lean projects. The developed SimLean framework comprises of seven stages,

which are “Qualify need for lean”, ’’Set simulation objectives”, ’’Leadership

commitment”, ’’Simulation team and time scale”, ”Pre

implementation”, ’’Implementation” and ’’Post implementation”. Moreover, the

framework is conceptualised in a customised simulation environment which is

designed on the basis of static VSM (value stream mapping) icons and

generates simulation models in Arena DES simulation software from VSM

drawings in Visio software. •

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7.1.3 EVA LUATIO N OF TH E C U STO M ISED S IM U LA TIO N

EN VIR O N M EN T

This research has validated the developed customised simulation environment

including VSM template in Visio software and SimVSM template in Arena

software. Detailed discussions of the evaluation process are presented in

Chapter six. Evaluation process includes drawing VSM in Visio software and

exporting to Arena software, then running the automatically generated model to

see the results. Parameters’ optimisation is presented as well. The five case

studies have proven the efficiency, accuracy and usability of the developed

SimLean framework and its conceptualised simulation environment.

Moreover, the VSM icons adopted by the developed system (including Supplier,

Customer, Truck, Process, Data box, Inventory, Supermarket, Production

kanban, Withdrawal kanban, Kanban post, Physical pull arrow, Kaizen burst,

etc.), provide logical and rapid modelling of lean projects. Furthermore,

limitations of the customised simulation environment were also observed, which

enabled the researcher to make recommendations for future work. The detailed

discussions about the developed framework and the functionality of the

proposed system are shown in Chapter four, Chapter five and Chapter six

respectively.

7 ,2 C O N T R IB U T IO N T O K N O W L E D G E

The research study has made a number of contributions to knowledge. To sum

up, the novelty of the research can be categorised into two main themes: the

research findings in terms of data and results; and the capability of the

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developed SimLean framework which aims to guide the embedment of

simulation technique into lean projects.

7.2.1 N O VELTY IN RESEARCH FINDING S

In terms of research findings, the research has provided an understanding of

how to embed simulation technique into lean projects systematically. A

customised simulation environment is proposed to facilitate, simplify and

standardize modelling process in lean projects. The results were obtained

through conducting literature review and interviewing lean practitioners. A

further contribution to knowledge is the simulation applicability for various lean

problems (as shown in Table 4-1). Then, the suggestion for simulation team

selection is described in Section 4.3.3 in details.

7.2.2 N O VELTY IN C A PA B IL ITY OF S IM LEAN F R A M EW O R K

The research work has proposed a novel framework about embedding

simulation in lean projects. Moreover, the emphasis of the framework is on

building simulation models at pre-implementation stage of the lean project, so

as to aid lean practitioners to validate the future state before actual

implementation and reduce the risk of making huge mistakes in the end. The

capability of the SimLean framework is described as follows:

• It enables companies to establish their simulation needs easily, by

comparing their existing problems with problems summarized in Table 4-

1.

• It enables a company to predict the outcome of implementing lean

manufacturing within its business precisely at an early stage.

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• Organisations are able to identify the best implementation plan for their

business, since the framework conducts model analysis and scenarios

comparison when designing the future state.

• Companies can evaluate their strengths and weaknesses in

manufacturing process based on the models of current state.

• The framework can also be used as a reference business tool for

embedding simulation in lean projects.

7.2.3 N O VELTY IN C A PA B IL ITY OF T H E PRO PO SED SYSTEM

The developed SimLean framework is conceptualised in a customised

simulation environment, which has been described in Chapter five and Chapter

six. The capability of the proposed customised simulation environment is

described as follows:

• It saves a lot of building blocks as well as model constructing time

through the use of the proposed system (as shown in Table 6-6).

• The customised simulation environment provides the ease of model

constructing with the familiar dialog design and Visio interface.

• The adoption of the customise template improves the accuracy of

simulation models, since each module in the SimVSM template has been

verified and validated as presented in Section 5.8.

• Dynamic VSM constructed with the proposed system provides better

result than static VSM as discussed in Chapter six.

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7.2.4 SO LU TIO N S TO TH E ID EN TIFIED RESEARCH GAPS

Through literature review and personal interviews presented in Chapter two and

Chapter three, a number of research gaps were discovered as listed below.

• Not clear about the best fit for simulation embedment in lean projects. Do

companies need simulation wholesome or piecemeal in their lean

projects?

• . Companies are unaware of the procedure of simulation integration in

lean projects.

• There is lack of structured framework to aid enterprises in determining

simulation suitability at the conceptual stage.

• Few reasons explaining why organizations have not adopted simulation

technique in their lean projects whole-heartedly.

• There are no available models capable of predicting lean effects through

dynamic simulation quickly and accurately to potential users.

The research study has provided some solutions to the above research gaps by

developing a reference framework about embedding simulation technique into

lean projects. Furthermore, as a building block in SimLean framework, a

customised simulation environment was developed and validated as described

in Chapter five and Chapter six.

7.2.5 A C C O M P LIS H M E N T OF TH E R ESEARCH Q U ES TIO N S

Chapter three described a number of research questions, and the answers are

listed below.

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1) Is it possible to embed simulation technique within lean projects? 2) What are

the main concerns of embedding simulation? 3) How can companies embed

simulation in lean projects? 4) Can embedment of simulation help companies

overcome some limitations in lean implementation? 5) What is the most suitable

delivery medium for the reference framework?

The answer to the first question is yes. The research has proven the possibility

through the development of SimLean framework which aims to guide simulation

integration in lean projects, as discussed in Chapter four.

The answers to question two and three can also be found in Chapter four of the

thesis. The main concerns about embedding simulation include: whether or not

simulation is applicable to solve the problem; Is simulation capable of

overcoming the limitations of required lean tools; Select the suitable simulation

team (in-house simulation team, simulation experts, external consultants, etc.);

Determine the budget range; and select the most suitable delivery medium for

building simulation models. The proposed SimLean framework provides a “how­

to” guide for companies to adopt simulation technique in their lean projects.

Question four and five have been achieved through the development and

deployment of a customised simulation environment, which can facilitate,

simplify and standardize modelling process in lean projects, as discussed in

Chapter five and six respectively.

7 .3 R E S E A R C H L IM IT A T IO N S

The SimLean framework aims to guide lean users to adopt simulation technique

in their projects. Additionally, the developed framework was conceptualised

through the use of a customised simulation environment. What’s more, the156

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proposed simulation environment was tested and validated through five cases

as presented in Chapter six. Thus, the main strengths of this research are listed

as follows.

• A unique framework about embedding simulation in lean projects whose

structure is systematic and generic and it overcomes major challenges

as discussed in Section 4.4.

• The proposed customised simulation environment has simplified,

facilitated and standardized simulation embedding process in lean

projects, which is a novelty achievement in this research.

• The benefits of the designed simulation environment include dramatically

saving model building time; eliminating the possible serious errors

caused by incorrect model logic design or unsynchronised parameter

modification; reducing threshold for users by designing the interface in

Visio software, as discussed in Chapter five and Chapter six respectively.

• The SimLean framework can be used as a guidance roadmap by

companies integrating simulation technique in their lean projects; or

referenced by simulation teams and consultants as an outline in

processing lean projects.

On the other hand, the research work has some limitations as well. For instance,

the research project conducted two interview activities which involved only four

interviewees. However, the small sample of interviewees is quite acceptable for

this case, because the aim of the interviews is to get in-depth and holistic

understanding in order to do justice to the complexity o f social life (Punch,

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2005); and the four selected interviewees hold standard basis to provide expert

opinions in the lean projects.

Firstly, all the interviewees have plenty experience in conducting lean projects

(see Section 3.4 for details). Secondly, all of them have delivered very

successful lean projects in the last few years, which make their opinion very

valuable since this whole research is based on the assumption that the

company is already implementing lean methodology. Last but not least, the-

three interviewees in the manufacturing company have developed an interest in

simulation technique and the lean six sigma consultant has used simulation in

his lean projects before, which is a good match for this research subject. Hence,

the adopted two interviews are sufficient for this research project.

Another limitation of the research work is that the proposed framework and

developed system can not solve all the problems in lean projects. Even though

simulation technique is a powerful tool in dealing with variant, dynamic and

complex system, there are some problems that are not suitable for simulation

technique to solve. For instance, 5S (sort, set in order, shine, standardize and

sustain), visual control (set up the whole workplace with signs, labels, markings,

etc.) and teams (an emphasis on team working in process improvement and

daily work) are all basic and very important lean tools that can not be replaced

by simulation technique.

7 .4 F U T U R E R E S E A R C H W O R K

After conducting research about embedding simulation technique in lean

projects, it is found out that a couple of other researchers are dealing with the

same problem as presented in Section 2.5 in literature review. However, none

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of those research work or products are designed within a systematic framework

as have been develop in this thesis. Thus in the future work, the researcher

suggests that the comparison between the SimLean framework and other

researchers’ work can be conducted for future work. The author also suggests

that future research investigation can be concentrated on simulation

applications in six sigma projects, and finally a reference framework about

embedding simulation technique in lean - and six sigma projects could be

proposed.

In conclusion, the research study has achieved the main aim and research

objectives of developing a reference framework about embedding simulation

technique in lean projects. Moreover, this thesis has conducted the following

activities:

• The thesis has presented a review of lean manufacturing, DES (discrete

event simulation) modelling and simulation applications in lean projects.

• The literature survey has identified a number of research gaps.

Significantly, it has generated a need for further research work in the

area of simulation embedment in lean projects.

• The research has proposed a systemic solution to the identified gaps. In

particular, the research has developed a reference framework SimLean

to assist simulation integration in lean projects and used a customised

simulation environment to achieve fast modelling for lean projects.

• The user-friendly interface in Visio is designed to provide ease of

understanding and interpretation for potential users.

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• The thesis highlights that the SimLean framework has the features of

being systematic and generic, and is capable of overcoming major

challenges in simulation embedment.

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Figure c.1 Dialog design of supplier module

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Figure c.2 Dialog design of customer module

174

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Figure c.4 Dialog design of safety stock module

175

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Figure c.6 Dialog design of Inventory module

176

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Figure c.7 Dialog design of Supermarket module

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Figure c.8 Dialog design of modified ProVSM module

177

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I ” ""File E d it V iew T o o k F o rm a t O b je c t C he ck W in do w H elp

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Figure c.9 Dialog design of modified Inventory module

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Figure c.10 Dialog design of modified Supermarket module

178

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A P P E N D IX D : V IS V S M T E M P L A T E P A R A M E T E R S

SUPPLIER MASTER___________ Table D.1 Properties of supplier masterLABEL NAM E TYPE VA LU E LA N G U A G E C A LE N D A R

SupplierName SupplierName String Supp lier! English Western

EntityType EntityType String Entityl English Western

SupplyQuantity SupplyQuantity String 500 English Western

TimeUnit TimeUnit String Days English Western

Interval Interval String 1 English Western

CUSTOMER MASTERTable D.2 Properties ol: customer master

LABEL NAM E TYPE V A L U E LA N G U A G E C A L E N D A R

CustomerName CustomerName String Customerl English Western

TimeUnit TimeUnit String Days English Western

KanbanBatch KanbanBatch String 1 English Western

Interval Interval String 1 English Western

SystemType SystemType String Push English Western

ProductBatch ProductBatch String 10 English Western

UpSuperM UpSuperM String SuperM2 English Western

TRUCK MASTERTable D.3 Properties of truck master

LABEL NAME TYPE V A L U E L AN G U A G E C A LE N D A R

TruckName TruckName String Truckl English Western

TransTimeHrs TransTimeHrs String 1 English Western

TruckBatch TruckBatch String 500 English Western

PROVSM MASTERTable D.4 Properties of provsm master

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LABEL NAME TYPE VALUE LANGUAGE CALENDAR

ProcessName ProcessName String ProVSMI English Western

ProductBatch ProductBatch String 10 English Western

Capacity Capacity String 3 English Western

Variations Variations String 5 English Western

ScrapRate ScrapRate String 0.02 English Western

CycleTime CycleTime String 40 English Western

C/OTime C/OTime String 10 English Western

Uptime Uptime String 100 English Western

UpSuperM UpSuperM String SuperMI English Western

SystemType SystemType String Push English Western

INVENTORY MASTERTable D.5 Properties of inventory master

LABEL NAME TYP

E

VALUE LANGUAG

E

CALENDA

R

InventoryName InventoryName Strin

9

Inventory

1

English Western

InventoryQuant

iy

InventoryQuanti

ty

Strin

g300 English Western

NextProcess NextProcess Strin

gProVSM

1English Western

EntityType EntityType Strin

gEntityl English Western

ProductBatch ProductBatch Strin

g

10 English Western

DailyDemand DailyDemand Strin

g600 English Western

SUPERMARKET MASTERTable D.6 Properties of supermarket master

LABEL NAME TYPE VALUE LANGUAGE CALENDAR

180

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LABEL NAM E TYPE VA LU E LA N G U A G E C A LEN D A R

SuperMName SuperMName String SuperMI English Western

StoreQuantity StoreQuantity String 350 English Western

UpProcess UpProcess String ProVSMI English Western

ProductBatch ProductBatch String 10 English Western

EntityType EntityType String Entityl English Western

DailyDemand DailyDemand String 600 English Western

KAIZEN BURST MASTERTable D.7 Properties of kaizen burst master

LABEL NAM E TYPE VA LU E L AN G U A G E C A LEN D A R

KaizenName KaizenName String Kaizen 1 English Western

SAFETY STOCK MASTERTable D.8 Properties of safety stock master

LABEL NAM E TYPE V A L U E L AN G U A G E C A LE N D A R

StockName StockName String Stockl English Western

EntityType EntityType String Entityl English Western

StockQuantity StockQuantity String 500 English Western

TrigerPoint TrigerPoint String 20 English Western

NextModule NextModule String SuperMI English Western

FIFO LANE MASTERTable D.9 Properties of FIFO lane master

LABEL NAM E TYPE V A LU E LA N G U A G E C A LE N D A R

FIFOName FIFOName String FIF01 English Western

SEQUENCED PULL BALL MASTER_________ Table D.10 Properties of sequenced pull ball masterLABEL NAM E TYPE V A LU E LA N G U A G E C A LE N D A R

SPBallName SPBallName String SPBalM English Western

LOAD LEVELLING MASTERTable D.11 Properties of load levelling master

181

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LABEL NAME TYPE VALUE LANGUAGE CALENDAR

LevelName LevelName String Level 1 English Western

182

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A P P E N D IX E: M A P P IN G F IL E C O N T E N T

STENCIL SHAPE PROPERTY TEMPLATE MODULE OPERAND

VisVSM Custome

r

SimVSM Customer

VisVSM Custome

r

Customer

Name

SimVSM Customer Customer

Name

VisVSM Custome

r

EntityType . SimVSM Customer Entity Type

VisVSM Custome

r

Interval SimVSM Customer Interval

VisVSM Custome

r

KanbanBatc

h

SimVSM Customer Kanban

Batch

VisVSM Custome

r

SystemType SimVSM Customer System

Type

VisVSM Custome

r

TimeUnit SimVSM Customer Time Unit

VisVSM Custome

r

UpSuperM SimVSM Customer Up SuperM

VisVSM Inventory SimVSM Inventory

VisVSM Inventory DailyDeman

d

SimVSM Inventory DailyDemand

VisVSM Inventory EntityType 1 SimVSM Inventory Entity Typel

VisVSM Inventory EntityType2 SimVSM Inventory Entity Type2

VisVSM Inventory EntityType3 SimVSM Inventory Entity Type3

VisVSM Inventory Inventory

Name

SimVSM Inventory Inventory

Name

VisVSM Inventory Inventory

Quantityl

SimVSM Inventory Inventory

Quantityl

VisVSM Inventory Inventory

Quantity2

SimVSM Inventory Inventory

Quantity2

183

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STENCIL SHAPE PROPERTY TEMPLATE MODULE OPERAND

VisVSM Inventory Inventory

Quantity3

SimVSM Inventory Inventory

Quantity3

VisVSM Inventory Next

Process1

SimVSM Inventory Next

Process1

VisVSM Inventory Next

Process2

SimVSM Inventory Next

Process2

VisVSM Inventory Next

Process3

SimVSM Inventory Next

Process3

VisVSM Inventory ProductBatc

h

SimVSM Inventory Product

Batch

VisVSM Kaizen

Burst

SimVSM Kaizen

Burst

VisVSM Kaizen

Burst

KaizenNam

e

SimVSM Kaizen

Burst

Kaizen

Name

VisVSM Load

Leveling

SimVSM Load

Leveling

VisVSM Load

Leveling

ModuleNam

e

SimVSM Load

Leveling

Module

Name

VisVSM ProcessV

SMSimVSM ProVSM

VisVSM ProcessV

SM

Capacity SimVSM ProVSM Capacity

VisVSM ProcessV

SM

Changeover

Time

SimVSM ProVSM Changeover

Time

VisVSM ProcessV

SM

CycleTime

Sec

SimVSM ProVSM Cycle Time

Sec

VisVSM ProcessV

SM

EntityType 1 SimVSM ProVSM Entity Type 1

VisVSM ProcessV

SM

EntityType2 SimVSM ProVSM Entity Type2

VisVSM ProcessV

SM

EntityType3 SimVSM ProVSM Entity Type3

184

Page 196: SimLean: a reference framework for embedding simulation in lean … · 2018-01-07 · SimLean: A Reference Framework for Embedding Simulation in Lean Projects Yan Jia A thesis submitted

STENCIL SHAPE PROPERTY TEMPLATE MODULE OPERAND

VisVSM ProcessV

SM

Process

Name

SimVSM ProVSM Process

Name

VisVSM ProcessV

SM

Product

Batch

SimVSM ProVSM Product

Batch

VisVSM ProcessV

SM

ScrapRate SimVSM ProVSM Scrap Rate

VisVSM ProcessV

SM

SystemType SimVSM ProVSM System

Type

VisVSM ProcessV

SM

UpSupermar

ketl

SimVSM ProVSM Up

Supermarket

1

VisVSM ProcessV

SM

UpSupermar

ket2

SimVSM ProVSM Up

Supermarket

2

VisVSM ProcessV

SM

UpSupermar

ket3

SimVSM ProVSM Up

Supermarket

3

VisVSM ProcessV

SM

Uptime SimVSM ProVSM Uptime

VisVSM ProcessV

SM

Variations SimVSM ProVSM Variations

VisVSM Safety/

Buffer

stock

SimVSM Safety

Stock

VisVSM Safety /

Buffer

stock

EntityType SimVSM Safety

Stock

EntityType

VisVSM Safety /

Buffer

stock

NextProcess SimVSM Safety

Stock

Next

Process

VisVSM Safety /

Buffer

stock

ProductBatc

h

SimVSM Safety

Stock

Product

Batch

VisVSM Safety / StockName SimVSM Safety Stock Name

18 5

Page 197: SimLean: a reference framework for embedding simulation in lean … · 2018-01-07 · SimLean: A Reference Framework for Embedding Simulation in Lean Projects Yan Jia A thesis submitted

S T E N C IL S H A P E P R O P E R T Y T E M P L A T E M O D U L E O P E R A N D

Buffer

stock

Stock

VisVSM Safety /

Buffer

stock

StockQuanti

ty

SimVSM Safety

Stock

Stock

Quantity

VisVSM Safety /

Buffer

stock

TriggerPoint SimVSM Safety

Stock

Trigger Point

VisVSM Sequenc

ed Pull

Ball

SimVSM Sequenc

ed Pull

Ball

VisVSM Sequenc

ed Pull

Ball

PullBallNam

e

SimVSM Sequenc

ed Pull

Ball

Pull Ball

Name

VisVSM Shipment

truckSimVSM Truck

VisVSM Shipment

truck

TransportTi

me Hours

SimVSM Truck Transport

Time Hours

VisVSM Shipment

truck

TruckBatch SimVSM Truck Truck Batch

VisVSM Shipment

truck

TruckName SimVSM Truck Truck Name

VisVSM Superma

rket

SimVSM SuperM

VisVSM Superma

rket

EntityType 1 SimVSM SuperM Entity Typel

VisVSM Superma

rket

EntityType2 SimVSM SuperM Entity Type2

VisVSM Superma

rket

EntityType3 SimVSM SuperM Entity Type3

VisVSM Superma

rketProductBatc

h

SimVSM SuperM Product

Batch

VisVSM Superma StoreQuantit SimVSM SuperM Store

186

Page 198: SimLean: a reference framework for embedding simulation in lean … · 2018-01-07 · SimLean: A Reference Framework for Embedding Simulation in Lean Projects Yan Jia A thesis submitted

STENCIL SHAPE PROPERTY TEMPLATE MODULE OPERAND

rket yi Quantityl

VisVSM Superma

rket

StoreQuantit

y2SimVSM SuperM Store

Quantity2

VisVSM Superma

rket

StoreQuantit

y3SimVSM SuperM Store

Quantity3

VisVSM Superma

rket

Supermarke

tName

SimVSM SuperM Supermarket

Name

VisVSM Superma

rket

UpProcessI SimVSM SuperM Up Process 1

VisVSM Superma

rket

UpProcess2 SimVSM SuperM Up Process2

VisVSM Superma

rket

UpProcess3 SimVSM SuperM Up Process3

VisVSM Supplier SimVSM Supplier

VisVSM Supplier EntityType SimVSM Supplier Entity Type

VisVSM Supplier Interval SimVSM Supplier Interval

VisVSM Supplier SupplierNa

me

SimVSM Supplier Supplier

Name

VisVSM Supplier SupplyQuan

titySimVSM Supplier Supply

Quantity

VisVSM Supplier TimeUnit SimVSM Supplier Time Unit

187