SPS Section 3 V3.0 English

TRAINING
Lean & Flow Manufacturing
Section 3 - Product / Process
A - Product
B - Process
SPS 0075 EN ind AC Section 3 : lean & flow manufacturing Training

1
SPS principles extract
Product/process engineering: simple

 17) Rationalize and standardize
raw materials, product
designs, processes and
equipment as much as
possible
Equipment : e xample of
standard module PRODUCTS : exam ple of
subassem bly com mon to different
ranges of c ircuit brea kers
SPS - 0041 EN - ind AM Illustration guiding principles of SPS

20
20

2
SPS principles extract
Product/process engineering: flexible
Profusion of variations to be delayed

 25) Promote late product
differentiation and Lead time
maximum component
standardization
Comb
Rake
A
SPS - 0041 EN - ind AM Illustration guiding principles of SPS
D
IP
28
28

3
TRAINING
A - Product
B1 - Process Capacity

4
An efficient process is a Just-in-Time process.
Make and Deliver

 just what is needed
 just when it is needed
 just in the amount needed
It must be synchronized with customer demand, and precisely

match production with this demand.
Takt Time is one of the Lean Manufacturing fundamentals
Takt Time is the precise interval of time between two

products to meet customer demand. (Takt means "heartbeat" in
German)

5
ORGANIZATION
Net Work hours ?
Sales &
Marketing
Capacity Strategy !!
Cmax ?
maxi 
Worked hours
without breaks
How define production pace of the process ?
Available production time

Takt Time  TAKT TIME
Customer _ demand REF ?

6
How define Cmax ?
Gradual increase of demand
Cmax
Cmax
Cmax
+ 15% + 20%
+ 10%
18-24 Months
period is ok. Up
to 50% is
feasible
12 Months 18 Months 24 Months

7
How define Cmax ?
High increase of demand
Define strategy.
Additional hours
or increase line
capacity?
Cmax
Cmax
+ 100%
+ 50%
6 Months 12 Months

8
How define Cmax ?
Seasonality Question:
‘ Where to place
Cmax ? ’
Cmax
6 Months 12 Months

9
How define Cmax ?
Eratic Demand Question:
‘ Where to place
Cmax ? ’
Cmax
6 Months 12 Months

1
0
How analyze or Simulate Customer need ?
The « Order Queue »

Is a tool which synthesize :
Lead Time, Service Rate, Efficiency, Capacity.
The idea is to express all of them, in a common unit :
« Time » A
F

1
1
Qtés
10000
15000
20000
25000
5000
0
02/01/1995
16/01/1995
SPS 0075 EN ind AC

30/01/1995
Example...
13/02/1995
27/02/1995
13/03/1995
27/03/1995
10/04/1995
24/04/1995
08/05/1995
22/05/1995
05/06/1995
19/06/1995
03/07/1995
Jours
17/07/1995
31/07/1995
Position our daily capacity at this level?
14/08/1995
28/08/1995
11/09/1995
25/09/1995
09/10/1995
23/10/1995
06/11/1995
20/11/1995
04/12/1995
18/12/1995
Below an order portfolio by day:
Section 3 : lean & flow manufacturing Training

2
1
Qtés
10000
15000
20000
25000
5000
0
02/01/1995
16/01/1995
SPS 0075 EN ind AC

30/01/1995
Example...
13/02/1995
27/02/1995
13/03/1995
27/03/1995
10/04/1995
24/04/1995
08/05/1995
customers on-time….
We will deliver these
22/05/1995
05/06/1995
19/06/1995
03/07/1995
Jours
17/07/1995
31/07/1995
14/08/1995
28/08/1995
But these are unhappy Customers !!
11/09/1995
25/09/1995
09/10/1995
23/10/1995
06/11/1995
20/11/1995
04/12/1995
18/12/1995
Below an order portfolio by day:

3
1
Qtés
10000
15000
20000
25000
5000
0
02/01/1995
16/01/1995
SPS 0075 EN ind AC

30/01/1995
Example...
13/02/1995
27/02/1995
13/03/1995
27/03/1995
10/04/1995
24/04/1995
08/05/1995
22/05/1995
05/06/1995
19/06/1995
03/07/1995
QuantitéModèle
Jours
17/07/1995
31/07/1995
Position our daily capacity at this level?
14/08/1995
28/08/1995
11/09/1995
25/09/1995
09/10/1995
23/10/1995
06/11/1995
20/11/1995
04/12/1995
18/12/1995
4
1
Qtés
10000
15000
20000
25000
0
5000
02/01/1995
16/01/1995
SPS 0075 EN ind AC

30/01/1995
Example...
13/02/1995
27/02/1995
13/03/1995
27/03/1995
10/04/1995
delivered on-time
24/04/1995
08/05/1995
22/05/1995
05/06/1995 Every customer will be

19/06/1995
03/07/1995
Jours
17/07/1995
31/07/1995
14/08/1995
28/08/1995
11/09/1995
25/09/1995
09/10/1995
23/10/1995
06/11/1995
20/11/1995
But who is paying the
04/12/1995
periods of low charge?
18/12/1995
5
1
3 objectives
Customer Customer
Lead Service
time level
Capacity
Production
efficiency

1
6
Lead time impact on current capacity
25000
Ex : for a Service rate of 98% 20000

The production tool can ’t meet
15000
Qtés
10000
Daily 5000
If Deadline 10 days capacity
10000/day
0
25000
The production tool can’t meet
20000
daily
If Deadline 1 day capacity
20000/day 15000
Qtés
10000
5000
0
1
Jours 7
Running principle of "Order Queue" tool
Quantity
Cmax is function
of customer lead
C Max time and service
rate
K*e1
Forecast
Average M 1 Portfolio
Marketing
Data M1
e1
Average M 0 Current
Portfolio
Nber of
days

1
8
TAKT Time Reference
Consistency of
units
H *S
TTref 
C max
Cmax = 50 Units
H= 400 Minutes
S= 1
Takt time ref = 8 Minutes/Unit
Cmax = demand at
TAKT Time Ref
capacity maximum – is used to match the rate of production to the “pace of sales”
H= available work hours per shift – is the target for equipment and operator balancing
S= number of shifts –
–
is a target rate for material consumption (material flow)
is used throughout the system for assembly and components

1
9
TAKT Time
C < Cmax
H *S
TT 
C
C= 40 Units
H= 400 Minutes
S= 1
Takt time = 10 Minutes/Unit
C= current demand
H= available work hours per shift
S= number of shifts

2
0
TRAINING
A - Product
B1 - Process Capacity
Exercice Cmax, TTref

2
1
Workshop 2
H *S
Calculate the Takt Time Reference for the different scenario’s below: TTref 
C max
Scenario 1: Scenario 3:
He = 450 Minutes per Shift (S) He = 420 Minutes per Shift (S)
S=1 S=1
Cmax = 600 Cmax = 14
TTref = ……….. TTref = ………..
S=3 S=3
Cmax = 1800 Cmax = 42
TTref = ……….. TTref = ………..

2
2
Workshop 2 (Answer Sheet)
H *S
Calculate the Takt Time Reference for the different scenario’s below: TTref 
C max
S=1 S=1
Cmax = 600 Cmax = 14
TTref = 45 Seconds TTref = 30 Minutes
S=3 S=3
Cmax = 1800 Cmax = 42
TTref = 45 Seconds TTref = 30 Minutes

2
3
TRAINING
B2 - Process Architecture

2
4
What Are Value Streams?
A Value Stream is the set of all actions (both value added and non value added) required
to bring a specific product or service from raw material through to the customer.
Types of Value Streams

“Whenever there is a product (or service) for a customer,
 there is a value stream. The challenge lies in seeing it.”
• 3 enterprise value streams:
• Raw Materials to Customer – Manufacturing
Use Process Synchronisations !
• Concept to Launch – Engineering
Use VSM !
• Order to Cash - Administrative Functions
Use VSM !
M
VS

2
5
2
6
Understand Processes and Products
FLOW LINE 2
?
Mixing
FLOW LINE 1
Heating Forming Cooling Pack Finish
der Process Cycle Time

e
Fe

2
7
Process definition
General description of a process: INPUT ACTIVITY OUTPUT
Process definition elements in a Lean & Flow Manufacturing environment
1. Sequential Work
2. Same Volume
3. Performed by Labor and/or Machine Resource
Process Definition:
Sequential tasks of work performed by a person and/or machine at a volume

2
8
PROCESS SYNCHRONISATION =
RELATIONSHIP OF PROCESSES IN A FLOW TO BUILD A PRODUCT
4 Types of Processes:
Process E
%?
Process F Process H
Process A Process B Process C Process D FP
Process G
1. Main Line Processes
%?
2. Secondary Processes
3. Option Processes
4. Rework Processes

2
9
FUNCTIONAL ORGANISED PRODUCTION
Front Wheel
Differential
Front
Final Assembly
Axle
Motor
Rear Wheel Rear

Brake Axle Differential
Motor
Process Synchronisation:
Brake
Final Assembly
Front Differential Front Wheel Axle
Rear Differential Rear Wheel Axle

3
0
Process E
Process F
Product 1 Process A Process B Process C Process D FP
Process H
Process G
Process H
Process G
Process E
Process F Process I
Process H

3
1
Process E
Process F
Process H
Process G
Process Steps & Equipment

Proc. A Proc. B Proc. C Proc. D Proc. E Proc. F Proc. G Proc. H Proc. I
Product 1 X X X X X X X X
Product 2
Product 3
Product 4
Product ...

3
2
Process H
Process G

Product 2 X X X X X X
Product 3
Product 4
Product ...

3
3
Process E
Process F Process I
Process H

Product 4
Product ...

3
4
Product 4
X X X X X X X X
Product 5
X X X X X X X
Product 6
X X X X X X X X
Product 7
X X X X X X X X
Product 8
X X X X X X X X
Product 9
X X X X on X
process X
Families based
X
commonality
Product 10
X X X X X X X X X

3
5
Mixed–Model Process Synchronisation
Understand flow of the Mix of Products to understand how to layout the new line design
Process E
Process F Process I
Process A Process B Process C Process D PF
Process H Process K
Process G

3
6
How identify the critical path of a current process ?
The definition of the production lead time: PLT
Throughput time in between two milestones of process.
The time taken is measured on the process’s critical path.
This indicator is used for designing or re-engineering a production line, to improve the
process reactivity. It must be followed from time to time by the production department.
The measuring unit is the hour.

3
7
Measuring the production lead time: PLT
End of
internal End of
customer
Internal MO
MO
MO Customer
MO
1st
Available for
operation on the
dispatch
critical path Intermediate TOP 2
TOP 1 Stock
Branch 1: Critical path
PLT measured on the critical path from “TOP1 to TOP2”

for a product (not for a batch):
= Σ of the manufacturing times
+ Σ of the transport times between stations
+ Σ of the waiting times at manufacturing stations
+ Σ of the waiting times in the intermediate stock
+ delivery time to the warehouse platform
3
8
Critical Path : ( Time unit )
Process E
Process F
Process A Process B Process C Process D FP
Processes
Process H Product
Cmax
A B C D E F G H
Product 1 25 X X X X X X X X
Process G Product 2
Product 3
31
50
X
X X X
X X X
X
X
X
X
X
Product 4 5 X X X X X X X
Product 5 12 X X X X X X
Product 6 6 X X X X X X X

3
9
3.6
Process E
6.1
Process F
1.3 5.3 7.2 2.2
Process A Process B Process C Process D
2.1
Process H
Process A: 1.3
Process B: 5.3
4.1 Process C: 7.2
Process D: 2.2
Process G Process E: 3.6
Process F: 6.1
Process G: 2.1
Process H: 4.1

4
0
3.6
2.2 + 2.1 + 4.1 = 8.4
6.1
1.3 5.3 7.2 ? 2.2
2.1
Process A: 1.3
Process B: 5.3
4.1 Process C: 7.2
Process D: 2.2
Process E: 3.6
Process F: 6.1
Process G: 2.1
Process H: 4.1

4
1
3.6
2.2 + 7.2 + 6.1 + 3.6 = 19.1
6.1
1.3 5.3 7.2 2.2
?
2.1
Process A: 1.3
Process B: 5.3
4.1 Process C: 7.2
Process D: 2.2
Process E: 3.6
Process F: 6.1
Process G: 2.1
Process H: 4.1

4
2
3.6
2.2 + 7.2 + 5.3 + 1.3 = 16.0
6.1
1.3 5.3 7.2 2.2
2.1
Process A: 1.3
Process B: 5.3
4.1 Process C: 7.2
Process D: 2.2
Process E: 3.6
Process F: 6.1
Process G: 2.1
Process H: 4.1

4
3
3.6 3.6 + 6.1 + 7.2 + 2.2 = 19.1

4.1 + 2.1 + 2.2 = 8.4
1.3 + 5.3 + 7.2 + 2.2 = 16.0
6.1
1.3 5.3 7.2 2.2
2.1
Process A: 1.3
Process B: 5.3
4.1 Process C: 7.2
Process D: 2.2
Process E: 3.6
Process F: 6.1
Process G: 2.1
Process H: 4.1

4
4
3.6
3.6 + 6.1 + 2.2 = 11.9
4.1 + 2.1 + 2.2 = 8.4
1.3 + 5.3 + 7.2 + 2.2 = 16.0
6.1
1.3 5.3 7.2 2.2
2.1
Process A: 1.3
Process B: 5.3
4.1 Process C: 7.2
Process D: 2.2
Process E: 3.6
Process F: 6.1
Process G: 2.1
Process H: 4.1

4
5
TRAINING
B3 - Process - Pull System

4
6
Principle: Pull system
PUSH SYSTEM PULL SYSTEM

4
7
Build the internal
Placing process
prosesses in architecture: Before ?
Lead time contract
The physical process
FO being identified,
Let’s work on the decision
Operation S/A 1 Welding A
making process…..
0peration S/A 2 0peration S/A B
0peration S/A 3
Cycle
External
Assembly Sub-contracting
Have we taken into account..?

Control Customer PLT - Lead-time ?
- Flow ?
Packaging - Process type ( continus,.) ?
Customer - Economic series coherence ?
- Differentiation trees ( Variants ) ?
- Quality criteria ?
Link 1
4
8
Impact on the internal architecture……..
FO
Time not seen by the customer

Link 1
Cycle
Initial
FO
Link Replenishment Loop
Time seen by Link 2

the customer Time seen by
the customer
Identification of new links…...

D
SC
M

4
9
Build or adapt the internal process architecture : After
Service level =
Operation S/A 1 Welding A Average + Std dev.
Service rate
0peration S/A 2 0peration S/E B
The quantity per variant is in
accordance with the average
0peration S/A 3 consumption in a given period of
time.
Inventory (*)
Third party
FO Sub-contracting
Assembly
Customers PLT
Control
Customers
Packaging

5
0
Pull Signal (PS) :
"Work In Progress" Visualization & Control in the Cell
• It’s a neutral Kanban Signal which shows when to start production, but not what to
produce.
• It’s a direct link between the customer demand and the suppliers.
• There is one PS at the end of each operation.
OP50 OP40
• The size of the PS reflects the size of the product
• There is always maximum one product in one PS
OP30 OP20
OP60
• The PS helps tp balance the Line
OP70
OP10
OP80
5
1
Workshop 3

5
2
Workshop 3
Individual Questions
1. List the 7 different types of waste as they are typically identified in a lean environment?
1) ________________________________________ 5) ________________________________________
2) ________________________________________ 6) ________________________________________
3) ________________________________________ 7) ________________________________________
4) ________________________________________
2. Which of the following elements in a Lean environment can be defined as “Value Added”:
A) Transportation
B) Waiting
C) Normative Control
D) Storage
3. Which of the following elements has not an impact when defining Cmax?
A) Customer Lead Time

B) Takt Time
C) Customer Service Level
D) Production Efficiency
4. Which elements are necessary to calculate TTref ?:
1) ___________________
2) ____________________

5
3
Workshop 3
5. When customer demand decrease, the takt time :
A) increase
B) decrease
C) don't change
6. What are minimal considerations, when defining a process?
A) Sequential operations , Volume, Labor, Parts

B) Volume, Labor, Machines, Space
C) Sequential Operations , Volume, Labor, Machines
D) Machines, Parts, Volume, Space
7. A family definition in a flow environment is defined as:
A) Products that are similar from a marketing point of view

B) Products that have similarity on the process level
C) Products that have the same Cycle Time
8. Which element is not taken into account when calculating the critical path for a product?
A) Manufacturing time
B) Transport time
C) Waiting time
D) Batch size

5
4
Workshop 3 (Solution)
1. List the 7 different types of waste as they are typically identified in a lean environment?
Over Production
1) ________________________________________ Micro Movement
5) ________________________________________
2) ________________________________________
Waiting time 6) ________________________________________
Repair, Inspection
Transport or Handling
3) ________________________________________ Storage
7) ________________________________________
Administrative Process
4) ________________________________________
2. Which of the following elements in a Lean environment can be defined as “Value Added”:
A) Transportation
B) Waiting
C) Normative Control
D) Storage
3. Which of the following elements has not an impact when defining Cmax?
A) Customer Lead Time

B) Takt Time
C) Customer Service Level
D) Production Efficiency
4. Which elements are necessary to calculate TTref ?:
Effective hours
1) ___________________
Cmax
2) ____________________

5
5
Workshop 3 (Solution)
5. When customer demand decrease, the takt time :
A) increase
B) decrease
C) don't change
6. What are minimal considerations, when defining a process?
A) Sequential operations , Volume, Labor, Parts

B) Volume, Labor, Machines, Space
C) Sequential Operations , Volume, Labor, Machines
D) Machines, Parts, Volume, Space
7. A family definition in a flow environment is defined as:
A) Products that are similar from a marketing point of view

B) Products that have similarity on the process level
C) Products that have the same Cycle Time
8. Which element is not taken into account when calculating the critical path for a product?
A) Manufacturing time
B) Transport time
C) Waiting time
D) Batch size

5
6

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TRAINING

Lean & Flow Manufacturing

Section 3 - Product / Process

SPS 0075 EN ind AC Section 3 : lean & flow manufacturing Training

Product/process engineering: simple

SPS - 0041 EN - ind AM Illustration guiding principles of SPS

SPS 0075 EN ind AC Section 3 : lean & flow manufacturing Training

Product/process engineering: flexible

Profusion of variations to be delayed

SPS 0075 EN ind AC Section 3 : lean & flow manufacturing Training

Section 3 - Product / Process

SPS 0075 EN ind AC Section 3 : lean & flow manufacturing Training

Make and Deliver

It must be synchronized with customer demand, and precisely

Takt Time is one of the Lean Manufacturing fundamentals

Takt Time is the precise interval of time between two

SPS 0075 EN ind AC Section 3 : lean & flow manufacturing Training

How define production pace of the process ?

Available production time

SPS 0075 EN ind AC Section 3 : lean & flow manufacturing Training

12 Months 18 Months 24 Months

SPS 0075 EN ind AC Section 3 : lean & flow manufacturing Training

SPS 0075 EN ind AC Section 3 : lean & flow manufacturing Training

SPS 0075 EN ind AC Section 3 : lean & flow manufacturing Training

SPS 0075 EN ind AC Section 3 : lean & flow manufacturing Training

The « Order Queue »

Lead Time, Service Rate, Efficiency, Capacity.

The idea is to express all of them, in a common unit :

SPS 0075 EN ind AC Section 3 : lean & flow manufacturing Training

SPS 0075 EN ind AC

Section 3 : lean & flow manufacturing Training

SPS 0075 EN ind AC

Section 3 : lean & flow manufacturing Training

SPS 0075 EN ind AC

SPS 0075 EN ind AC

05/06/1995 Every customer will be

SPS 0075 EN ind AC Section 3 : lean & flow manufacturing Training

Ex : for a Service rate of 98% 20000

SPS 0075 EN ind AC Section 3 : lean & flow manufacturing Training

SPS 0075 EN ind AC Section 3 : lean & flow manufacturing Training

SPS 0075 EN ind AC Section 3 : lean & flow manufacturing Training

Section 3 - Product / Process

SPS 0075 EN ind AC Section 3 : lean & flow manufacturing Training

TTref = ……….. TTref = ………..

TTref = ……….. TTref = ………..

SPS 0075 EN ind AC Section 3 : lean & flow manufacturing Training

TTref = 45 Seconds TTref = 30 Minutes

TTref = 45 Seconds TTref = 30 Minutes

SPS 0075 EN ind AC Section 3 : lean & flow manufacturing Training

Section 3 - Product / Process

SPS 0075 EN ind AC Section 3 : lean & flow manufacturing Training

Types of Value Streams

SPS 0075 EN ind AC Section 3 : lean & flow manufacturing Training

der Process Cycle Time

SPS 0075 EN ind AC Section 3 : lean & flow manufacturing Training

General description of a process: INPUT ACTIVITY OUTPUT

Process definition elements in a Lean & Flow Manufacturing environment

3. Performed by Labor and/or Machine Resource