2-11 Process Constraint Identification (ABBE-R031104)

Process Constraint
Identification and
Time Trap Analysis
© 2003 ALCAN Inc.

Lean Six Sigma
Black Belt Improvement Process Road Map
Identify and Implement Quick Improvements with Kaizen

Kaizen, 5S, NVA Analysis,
Generic Pull Systems,
Four Step Rapid Setup Method
Activities Tools
• Identify Potential Root Causes • Process Constraint ID and Takt Time
Analysis
• Reduce List of Potential Root Causes
• Cause & Effect Analysis
• Confirm Root Cause to Output Relationship
• FMEA
• Estimate Impact of Root
• Value StreamCauses
Mapping on Key Outputs
• Value of Speed (Process Cycle
• Hypothesis Tests/Conf. Intervals
• Prioritize Root Causes
Efficiency/Little’s Law)
• Operational Definitions
• Simple and Multiple Regression
• Complete Analyze• Data
Gate Collection Plan
• Statistical Sampling
• Measurement System Analysis
• ANOVA
(MSA)
• Gage R&R • Components of Variation
• Kappa Studies
• Control Charts • Conquering Product and Process
• Histograms Complexity
• Normality Test
• Process Capability Analysis • Queuing Theory
Process Constraint ID & Time Trap Analysis © 2003 ALCAN - George Group Curriculum Slide 2
Learning Objectives
 Learn the difference between a capacity constraint and a time trap
 Understand the tools to identify a capacity constraint

 Takt Rate Analysis
 Load Factor Report Analysis
 Understand the tools to identify time traps

 Workstation Turnover Time
 Spreadsheet Analysis
Lean Definitions
 The following terms are used frequently to quantitatively describe the output of a process and the critical process steps:
 Capacity: The maximum amount of product (output) a process can deliver (produce) over a continuous period of time
 Example: The capacity of our process is 120 mortgage applications per day
 Takt Rate: The amount of product (output) required by the customers over a continuous period of time
 Example: Our customers submit a Takt Rate of 130 applications per day
 Time Trap: Any process step that inserts delay time into a process
 Example: Our property appraisers evaluate 120 properties per day, all other process steps can process 145 applications per day
 Constraint: A time trap that is unable to produce at the exit rate required to meet customer demand (internal or external takt
rate)
 Example: Our property appraisers can only evaluate 120 properties per day, but customer demand is currently 130 applications per day!
What Is a Time Trap?
 Time traps insert delay time into a process
 Time traps can create long lead times, large downstream inventories, large WIP,
 Time traps are principally due to long setup times, machine or human downtime, or quality problems
 Time traps can change over time (monthly, weekly, even daily) based upon product mixes or special causes
(new product introductions, special orders, etc.)
 Time traps can be caused by physical problems (such as process flow, personnel availability, part/supply
shortages, equipment availability, etc.)
 Time traps can also be caused by non-physical problems (such as procedures, morale, unsafe work
environments, lack of training, etc.)
 There is ALWAYS a time trap in a process!
This is a
Time Trap!!
What Is a Constraint?
 Constraints limit the output capacity of the process (sometimes called
bottlenecks)
 Constraints have less capacity than the prior or subsequent steps/operations
 Constraints are time traps that cannot meet customer demand (a
constraint is ALWAYS a time trap, but a time trap may not be a constraint!)
 Constraints can change over time (monthly, weekly, even daily) based
upon product mixes or special causes (new product introductions, special
orders, etc.)
This is a
Constraint!!
How Are Time Traps Created?
 Poor process flow
 Machine capacity  Distance
 People
 Lack of parts  Safety concerns
 Transportation methods (cranes, foot, etc)


Handoffs
Large batch sizes
 Poor scheduling
Operational deficiencies
Product mix

 Setup 
 Scrap (low yield)
Downtime
 Excessive WIP

 Rework
 Variability of the process

 Stress
 Turnover
 Etc.
The Importance of Time Traps
 The most limiting time trap of this process is here.
 If we do not understand where the time traps exists, we may end up focusing our project on the wrong process activity.
Activity 1 2 3 4 5 6 7
The Importance of Constraints
 This time trap is also a constraint…
Demand
 Unless we attack the constraint, we will continue to be unable to meet customer demand.
Activity 1 2 3 4 5 6 7
Black Belt Project Focus
Time Traps or Constraints
Time Traps
 Focus on time trap identification if the goal of your Black Belt project is to improve efficiencies
( in inventory, lead time, output rates, etc.)
Constraints
 Focus on constraint identification if the goal of your Black Belt project is to increase capacity
We will look at constraint identification first

since it impacts the customer
Constraint
Identification
Takt Rate Analysis
© 2003 ALCAN Inc.

Takt Time and Takt Rate
We use Takt Time when We will use Takt Rate when
describing the output of a referring to Customer
given step/task Demand
Takt Time = Customer Demand Takt Rate = Customer Demand

(stated in time per unit) (stated in units per time)
Example: Takt Time = seconds/piece Example: Takt Rate = pieces/second
Takt Time = Takt Rate =

Production Time Available Number of Units to Produce
Number of Units to Produce Production Time Available
Note: Takt is German for “metronome” or musical beat
Takt Rate Analysis
Constraint
Takt Rate = Identification
Customer Demand Main Production Board: Operation 3
The Constraint is the operation or process Yesterday: 443 Units 1.61 Units/ labor hr
Today:
that produces below the Takt Rate
445 Units 1.62 Units/ labor hr
Hour Takt Rate Actual +- Diff Comments
7-8 AM 60 53 -7 Down for 5 min
8-9 AM 60 59 -8
9-10 AM 45 48 -5 Skipped production meeting
10-11AM 60 61 -4
11-12 PM 30 34 0 Took late lunch
Number of Units to Produce 12-1 PM 60 59 -1
Takt Rate = 1-2 PM
2-3 PM
60
45
58
44
-3
-4
Production Time Available 3-4 PM 30 29 -5
Totals 450 445
Step 1: Write in the number of units produced and the units/hour from yesterday
Step 2: Write in the number of units to produce and the units/hour goal for today,
confirm the takt rate for each hour (account for breaks and lunch)
Step 3: Each hour, write in the number of units produced in the previous hour
Example Step 4: Write in the cumulative difference between the scheduled units
produced and the actual units produced
Step 5: Write in any comments (frame welder down, no glass) as a reason for
meeting or not meeting the takt rate.
Constraint vs. Time Trap
Operation Operation Operation Operation

1 2 3 4
Input Task Time = Task Time = Task Time = Task Time = Output
30 sec/unit 40 sec/unit 45 sec/unit 35 sec/unit
Process Lead Time
Task Time above = The total amount of time needed to

accomplish the operation
1. Which operations are time traps?
2. If the takt rate is 75 units per hour, is there a constraint?
3. What if the customer is demanding 85 units per hour?
Constraint Exercise #1:
Great XYZ Company
 We are the owners of the Great XYZ Company and need to know the following to maximize production
capabilities. The customer demand appears to be high compared to our production abilities. What do you
think?
1. What is the net operating time (hours per week)?
2. What is the factory takt rate (units/hour)?
3. What is the time trap in the process? What is its’ capacity (in units per hour)?
4. Is the time trap a constraint (can it produce to the takt rate – Yes/No)?
5. If an additional piece of equipment is purchased to increase capacity at the time trap, what is the new capacity?
The Process
Operation 1 Operation 2
Ship
Operation 3 Operation 4
Basic Operating Data
 The company has a customer demand of 16,000 units per week.
 The factory operates:

 5 days per week
 3 shifts per day
 Each shift receives a 20 minute paid lunch
 Each shift receives 2 – 10 minute paid breaks
Operating Capacity
Operation Capacity/Mach # Machines
 Operation 1 60 units/hr 3
Results Constraint Exercise #1:
Great XYZ Company
1. What is the net operating time (hours per week)?
 __________________________________________
2. What is the factory takt rate (units/hour)?
 __________________________________________
3. What is the capacity time trap in the process? What is its’ capacity (in units per hour)?
 __________________________________________
4. Is the time trap a constraint (does it take longer than the takt rate – Yes/No)?
 __________________________________________
5. If an additional piece of equipment is purchased to increase capacity at the time trap, what is the new capacity?
 __________________________________________
Constraint Identification
Load Factor Report Analysis
For environments where the
constraint changes daily due to
product mix (i.e. a job shop)
© 2003 ALCAN Inc.

Environments with
Changing Constraints
 In most environments the constraint is fairly easy to identify through takt rate analysis
 However, in some instances, the constraint shifts frequently depending on the product mix
 Different product mixes may have different processing times at each operation, or they may have
different operation routings. This is often the case in job shops
 In these types of environments, it is necessary to identify the constraint each day as the
production mix changes
Load Factor Report Analysis
The Load Factor Report: Load Factor
Report
 Provides visibility to the constraint operations that are
loaded over capacity
 Allows control of the in-process load at the operation level
 Sets a capacity target level for each operation
Load Factor Report
The Load Factor Report has the following information:
 Work Center – Operation number assigned to process units
 Capacity – Productive hours per shift (hours)
 Load – Current queue for operation (hours)
 Load Factor – Factor calculated by dividing load (queue) by capacity of the operation
 Target Load Factor – Targeted load per machine expressed in days
 Deviation – Over (+) or Under (-) the target Load Factor expressed in days
Example:
Load Factor Report
Load Factor Report
Operation Capacity Load Factor Target Deviation
Hours Hours Days Days (+/-)
261100 6.5 51.3 7.89 1 6.89
261102 6.5 5.9 0.91 1 -0.09
261400 6.5 5.1 0.78 1 -0.22
261406 6.5 0.6 0.09 1 -0.91
 Operation #261100 is loaded over capacity, therefore a constraint
 Goal – eliminate constraint #261100 by reducing the Factor Days to be less than or equal to the
Target Days. This is accomplished by either:
 Off-loading work to another area
 Increasing capacity at this operation (more people, time, equip.)
 The Load Factor Report is created prior to the beginning of the working shift
 A flag can then be placed at the constraint operation for visibility
Time Trap
Identification
© 2003 ALCAN Inc.

Time Trap Identification
 With Constraint Identification, we are interested in finding the operation or
process that will facilitate increasing capacity
 With Time Trap Identification, we are interested in finding the operation or

process that will facilitate improving process efficiencies
 Time traps impact efficiencies by requiring more inventory, more equipment, more
people, more material, and more time in order to meet customer demand
Where Are the Time Traps?
Where the Inventory Stacks Up?
Careful!
Remember ACE Manufacturing?
Where Was the Time Trap?
Pareto Principle and Time Traps
 Applying the Pareto Principle to time traps means that in most environments, 80%
of the inefficiency or delay is caused by 20% of the steps in the process
 Turning this around then states that making improvements to 80% of the steps in
the process has little to no impact on efficiency or speed
 Therefore it is critical that our Black Belt projects are focused on the time traps
Time Trap Identification
Workstation Turnover Time
© 2003 ALCAN Inc.

Time Traps and Workstation
Turnover Time
 Capacity constraints can be found using takt rate analysis, but how does one identify time traps through
inefficiency?
 To determine the time traps in a process one must consider the different operating parameters of both the
workstations in the process and the products flowing through the process.
 For example, how do setup times, processing times, and batch sizes affect individual workstations?
 We can use some fundamental mathematics that relate these parameters in a term called Workstation
Turnover Time (which is analogous to inventory turns), to calculate the time trap.
Workstation Turnover Time
(WTT)
WTTk = [(Setup Time i ) + (Process Time i x Batch Size i )]
 WTT is the Workstation Turnover Time - the amount of time to
setup and run all parts at a given workstation once.
 Where k = 1 to number of workstations in the process
 Where i = 1 to n part numbers routed across that workstation
 We will develop this equation later in the course (to help us
analytically size batches), but it is important here too.
 To determine which workstation is the critical time trap, simply
calculate WTT for each workstation in the process – the station
with the longest WTT is the critical time trap
Process Constraint Identification:
Understanding WTT
 Workstation Z processes three parts: A, B, C
Scenario 1:  If the parts are run sequentially (one after another), then:
 WTT for workstation Z is defined as:
Batch A Batch B Batch C Batch A Batch B Batch C
Setup A Process A Setup B Process B Setup C Process C Setup A Process A Setup B Process B Setup C Process C
WTTZ WTTZ
Scenario 2:  Workstation Z processes three parts: A, B, C

 The parts are not run sequentially (not one after another), then:
 WTT for workstation Z is defined as:
Batch A Batch B Batch A Batch C Batch A Batch B
Setup A Process A Setup B Process B Setup A Process A Setup C Process C Setup A Process A Setup B Process B
WTTZ
 WTT for workstation Z is the same in both scenarios.
Workstation Turnover
Time Example
 Use the data given below to solve for WTT=[(Setup Timei ) + (Process Timei x
Batch Sizei)]
WTT = [(SetupA)+(Process TimeA x Batch SizeA) + (SetupB) + (Process TimeB x Batch SizeB)]
 [(4 hrs) + (.01 hrs/unit x 1000 units) + (4 hrs) + (.01 hrs/unit x 1000 units)
 WTT = [(4 hrs) + (10 hrs) + (4 hrs) + (10 hrs)]
 WTT = 28 hrs
A B C
Setup A 4 hrs
Setup B 4 hrs
Process Time A 0.01 hrs/unit
Process Time B 0.01 hrs/unit
Batch Size A 1000 units
Batch Size B 1000 units
Demand A 35.71 units/hr
Demand B 35.71 units/hr
Available hours 40 hrs/week
WTT = ?? hrs
WTT Example Explanation
 Given the workstation data of setup time, process time, and batch size, the WTT in this example is 28 hrs.
 This 28 hour WTT is a reflection of the workstation’s inflexibility. Because of the setup time and required batch size,
this workstation is injecting delay time into the process.
 Calculating WTT for each workstation in the process allows us to find the workstation that is injecting the most delay
time. This workstation is the critical time trap.
 In the future, we will learn how to analytically size batch sizes given workstation data such as setup time, scrap, rework,
downtime, etc. As batch sizes are changed due these parameters, WTT will change. So ultimately WTT is impacted by
all of these parameters as well.
Time Trap
Identification
Excel Exercise
© 2003 ALCAN Inc.

Takeaways
 How to identify capacity constraints in a process
 How to identify time traps in a process
 Understand the tools used

 Takt Rate Analysis
 Load Factor Report Analysis
 WTT Analysis

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Process Constraint

© 2003 ALCAN Inc.

Identify and Implement Quick Improvements with Kaizen

 Understand the tools to identify a capacity constraint

 Understand the tools to identify time traps

 Variability of the process

We will look at constraint identification first

© 2003 ALCAN Inc.

Takt Time = Customer Demand Takt Rate = Customer Demand

Takt Time = Takt Rate =

Number of Units to Produce Production Time Available

Note: Takt is German for “metronome” or musical beat

7-8 AM 60 53 -7 Down for 5 min

9-10 AM 45 48 -5 Skipped production meeting

11-12 PM 30 34 0 Took late lunch

Number of Units to Produce 12-1 PM 60 59 -1

Takt Rate = 1-2 PM

Totals 450 445

Operation Operation Operation Operation

Process Lead Time

Task Time above = The total amount of time needed to

 The factory operates:

© 2003 ALCAN Inc.

 Allows control of the in-process load at the operation level

 Sets a capacity target level for each operation

© 2003 ALCAN Inc.

 With Time Trap Identification, we are interested in finding the operation or

© 2003 ALCAN Inc.

Batch A Batch B Batch C Batch A Batch B Batch C

Scenario 2:  Workstation Z processes three parts: A, B, C

Batch A Batch B Batch A Batch C Batch A Batch B

© 2003 ALCAN Inc.

 How to identify time traps in a process

 Understand the tools used

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