1. FMS 300 Series FBP-FMS320A Introduction to Flow Series: FMS320 to FMS325

2. 2 Content Introduction Manufacturing Strategy Strategy for the Value Stream Identifying where to Flow The Pacemaker Customer Demand Rate

3. Manufacturing Strategy

4. 4 System View of Manufacturing Strategy In a Sequential Pull System orders are built only to demand in a continuous flow manner Paint Assy Customer Stamp OXOX Prod Control Order FIFO In this case we assume one or more of below: The LT for the process is less than the customer delivery window The whole system can achieve continuous flow All work cells are dedicated to the family group FIFO use indicates Mix Model process Schedule the first operation based on demand

5. 5 System View of Manufacturing Strategy The Pull System starts at the FG supermarket and triggers demand upstream In this case we assume one or more of below: All products are in a finished goods supermarket ready for delivery Many shared resources force us to batch production Customer delivery window may be shorter than the assy operation LT Capacity constraints may force FG Supermarket requirements Set Up times are long and force batching Paint Assy Customer OXOX Stamp Prod Control

6. 6 System View of Manufacturing Strategy In a Mixed Pull System only selected products are on pull and the rest are on build to order (continuous flow) Paint Assy Customer Stamp Order Prod Control OXOX FIFO In this case we assume one or more of below: There is border line capacity to meet demand 80/20 rule applied to product selection for supermarket Shared resources force batching prior to assembly Process is a mix model line

7. 7 System View of Manufacturing Strategy The most desirable Paint Assy Customer OXOX Stamp Prod Control Paint Assy Customer Stamp OXOX Prod Control Order FIFO Paint Assy Customer Stamp Order Prod Control OXOX FIFO The most probable Sequential Pull Replenishment Pull Mixed Pull In all cases, the ability to achieve flow will determine performance and behavior of the process So when we say flow, where exactly does it happen?

8. 8 Where do we need to Flow? Paint Assy Customer OXOX Stamp Prod Control Paint Assy Customer Stamp OXOX Prod Control Order FIFO Paint Assy Customer Stamp Order Prod Control OXOX FIFO Sequential Pull Replenishment Pull Mixed Pull In this whole process A B C Where are the Pacemakers in each of these three scenarios? and within each cell

9. 9 Creating Flow What is the strategy for your Value Stream? Review your future state map

10. 10 The Pacemaker What is the Pacemaker: The point at which we schedule work is called the pacemaker After this point we flow downstream to customers. Before this point, we pull from share resources, etc. Pacemaker determines the speed at which the value stream will operate Increase the pacemaker speed = more products Decrease the pacemaker speed = fewer products To create a pacemaker, we can dedicate equipment to form a cell or line through which parts continuously flow, one piece at a time without stoppage Paint Assy Customer OXOX Stamp Prod Control Replenishment Pull

11. 11 The Pacemaker Paint Assy Customer OXOX Stamp Prod Control Replenishment Pull Pacemaker Customer OXOX Chassis Assy Prod Control Backplane Assy Functional & Traffic Test Pack IPK Schedule the first operation in the pacemaker and flow to the customer A Pacemaker establishes the pace of the line, so it requires: * High Uptime* Busy with demand * Quick changeover * Maximum visibility of performance

12. Flowing From the Pacemaker downstream Chassis Assy Backplane Assy Functional & Traffic Test Pack IPK

13. 13 Brings Problems to the surface Creates right process to produce the right results Faster means better in a flow Creating Continuous Flow – Toyota perspective Most Business processes are 90% WASTE and 10% VALUE-ADDED work Creating flow means linking together operations that otherwise are disjointed. When operations are linked together there is : - more teamwork; - rapid feedback on earlier quality problems; - control over the process, and - direct pressure for people to solve problems, think and improve.

14. 14 Continuous FlowContinuous Flow is the key objective of FMS production Creating FlowCreating Flow is the goal of countless kaizen projects Objectives of Creating Flow To eliminate waste by producing the needed item at the right time and the exact quantity and quality as in JIT principles

15. 15 Characteristics of a Continuous Flow Line up all of the steps that truly create value so they occur in a rapid sequence Requires that every step in the process be: CapableCapable – right every time (6 Sigma) AvailableAvailable – always able to run (TPM) AdequateAdequate – with capacity to avoid bottlenecks (right-sized tools)

16. 16 Linking manual and machine operations into the most efficient combinations to maximize value-added content while minimizing waste Elimination of work stagnation in and between processes Ideal creation of one piece flow: making one part and moving one part (in contrast to batch and queue material handling) Why Continuous Flow In order to really get and hold the benefits of flow production the organization must transition from a functional structure to a product-focused, cross-functional structure

17. 17 Built-In Quality; Creates Real Flexibility; Creates Higher Productivity; Frees up Floor Space; Improves Safety; Improves Morale; and Reduces Inventory Benefits of Creating Flow

18. 18 Flow Comparison – Traditional vs JIT Flow with JIT Traditional Flow Customers Suppliers Customers Suppliers Production Process (stream of water) Inventory (stagnant ponds) Material (water in stream) Many ripples

19. 19 A philosophy that rejects batch, lot or mass processing as wasteful States that product should move (flow) from operation to operation, only when it is needed, in the smallest increment One piece is the ultimate (one-piece-flow) One Flow – an ultimate goal One Piece Flow – an ultimate goal

20. 20 Traditional thinking about maximizing utilization; Lack of understanding of flow techniques Resistance from workers; Process/equipment breaks down; Line/machine change over; Creating “fake-flow”; Inventory to cover just-in-case logic; Unable to confront reality; Back tracking the flow implementation Understanding the Need for Flow is Difficult ?

21. Customer Demand Rate

22. 22 Designed capacity is the maximum output we can produce in a flow during planned work hours Designed daily capacity is set for a longer period of time by program management together with the customer Without re-designing the line or changing production method, a range of volume from 50% to 100% designed capacity then can be achieved Daily Capacity : where, Dc, Dr = Designed Daily Rate (Capacity) PV = Targeted Monthly Volume WD = Work days per month Example : Target month volume = 50000, Work days per months = 20 days Therefore, Dr, Dc = 50000/20 = 2500 Determine Line Design Capacity D C = PV WD

23. 23 The flow rate is equal to the specific daily rate divided by the effective work hours times the number of shifts per day: Fr = Fr = Hourly Flow Rate Dc = Daily Capacity (Rate) H = Effective Work Hours S = Work Shift per day The flow rate can also be used as a tool to monitor the progress of throughput during daily production. Line Flow Rate (or Hourly Rate) Dc H(S)

24. 24 TAKT is Total Available Time over Demand Takt defines how often a part or product needs to leave the process within the designed capacity TAKT = = Customer Demand - (TAKT) * Effective work hours is defined as the actual time used to produce the part or product. For example, paid hours minus break time, meeting time, preventive maintenance, etc. Or TAKT = Effective work hours* x Shifts per day Daily Capacity H(S) Dc 1 Fr

25. 25 Takt in Action Takt means “Rhythm” or “Pace” Example: Takt = = =.0568 hrs (3.41 minutes) FEEDER LINE 3,41 FEEDER LINE In-Process Kanban 3.41 TAKT 3.41 1,71 3,41 FEEDER LINE 3,41 2 units required to feed the main process Hrs/Shift x Shifts/Day Required Daily Rate 7.5 x 1 132 IPK

26. 26 Takt for a Product Mix As we have already learned Effective work hours* x Shifts per day Daily Capacity TAKT = So 1 unit is produced every TAKT What happens when we have multiple products? Single Product to Mix Model