process improvement techniques

PROCESS ANALYSIS & IMPROVEMENT

TECHNIQUES

Simple Sustainable Solutions 1

Process Analysis & Improvement Techniques

Trainers:

Hakeem–Ur–Rehman

&

Sajid Mahmood

Simple Sustainable Solutions


Outline:


Process Def.

Process Flow Diagram

o How to Draw?

o Value Added Vs Non–Value Added Activities

Process Analysis

o Bottleneck Analysis

o Productivity / Process Improvement through Line Balancing

Process FMEA

Hakeem-Ur-Rehman & Sajid Mahmood


Questions to Ask in Process Flow Analysis & Improvement:

Simple Sustainable Solutions Hakeem-Ur-Rehman & Sajid Mahmood 3

PRODUCTION

SYSTEM

Four Factors involve:

o Quantity

o Quality

o Time

o Cost / Price

Flow: “Balanced?”; “bottleneck?”; are all steps necessary?

Time: Manufacturing Lead Time? Cycle time? Excessive set-up

time? Excessive waiting time? Can it be reduced?

Quantity: “Design Capacity Vs Actual Capacity”

Quality: Historical defect rate? Which step(s) contributes to

defect rate? Where do errors occur?

Cost to produce one unit? Can we reduce it?

What does the customer need? What operations are necessary? Can some operations be

eliminated, combined, or simplified?

Who is performing the job? Can the operation be redesigned to use less skill or less labor?

Can operations be combined to enrich jobs?

Where is each operation conducted? Can layout be improved?

When is each operation performed? Is there excessive delay or storage? Are some

operations creating bottlenecks?

How is the operation done? Can better methods, procedures, or equipment be used?


Process: Def.


Process / Operations refers to the production of goods and services, the set

of value-added activities that transform inputs into outputs.

Inputs Outputs

GoodsServices

Resources Labor & Capital

Process “network of activities performed by resources”

Resources: Labor & Capital

Flow units

(raw material, customers)

1. Process Boundaries:

– input

– output

2. Flow unit: the unit of analysis

3. Network of Activities & Storage/Buffers

4. Resources & Allocation

– who does what?

5. Information Structure

KEY FOR CAPACITY ANALYSIS


Process Flow Diagram:


Process flow diagram is that uses graphic symbols to represent the nature

and flow of the steps in a process / system.

FEW SYMBOLS USED IN FLOW DIAGRAM

Process Symbol

“An Operation or Action step”

Terminator Symbol

“Start or Stop Point in a process”

Inventory / Buffer

“Raw Material / Finished

Goods Storage”

Inventory / Buffer

“Partial Finished Goods

“Work In Process” Storage”

Flow Line

Decision Point


Process Flow Diagram … :


What you THINK it is …

What it ACTUALLY is …

What it SHOULD be …


Process Mapping Levels:


LEVEL–1: The Macro Process Map, sometimes called a Management Level or viewpoint.

LEVEL–2: The Process Map, sometimes called the worker level or viewpoint. This example is

from the perspective of the pizza chef.

LEVEL–3: The Micro Process Map, sometimes called the Improvement level or viewpoint.

Similar to a level–2, it will show more steps and tasks and on it will be various performance

data; yields, cycle time, value and non-value added time, defects, etc.


Value Added & Non–Value Added:


Value Added Activity

Transforms or shapes material or information or people

And it’s done right the first time

And the customer wants it

Non-Value Added Activity – Necessary Waste

No value is created, but cannot be eliminated based on current technology,

policy, or thinking

Examples: project coordination, company mandate, law

Non-Value Added Activity – Pure Waste

Consumes resources, but creates no value in the eyes of the customer

Examples: idle/wait time, rework, excess checkoffs


Process Analysis Vocabulary:


Processing times or activity time: how long does the worker or process spend on

the task?

Capacity: how many units can the worker or process make per unit of time

Bottleneck is the process step with the lowest capacity

Process Capacity is the capacity of the bottleneck

Cycle time is the time interval between the completion of two consecutive units (or

batches)

Flow rate (Throughput rate) is the output rate that the process is expected to

produce

Flow Time (Throughput time) = The amount of time for a unit to move through thesystem

Inventory (WIP): The number of flow units in the system

Utilization is the ratio of the time that a resource is actually being used relative tothe time that is available for use

Work Load/Implied Utilization = Capacity requested by demand / AvailableCapacity

TIME TO FINISH ‘X’ UNITS (Continuous System)= X Units / Flow Rate

(Empty System)= Time through empty process + [(X – 1) Units / Flow Rate]


Process Analysis Vocabulary… :


WORKER–PACED Process:

o TIME THROUGH EMPTY PROCESS = “Sum of the activity times”

WORK PACED PROCESS LAY-OUT

MACHINE PACED PROCESS LAY-OUT

MACHINE–PACED Process:

o TIME THROUGH EMPTY PROCESS = “(Number of resources in sequences) X

(Activity time of the bottleneck step)”


Process Analysis Vocabulary… :


Takt Time = (Avaiable Time / Demand)

Cost of Direct Labor = (Total wages per unit of time) / (Flow rate per unit of time)

Idle Time across all workers at resource ‘i’

= [(Cycle Time) X (Number of workers at resource ‘i’) – (Activity time at resource ‘i’)]

Average Labor Utilization = [(Labor Content) / (Labor Content + Total Idle Time)

Labor Content = Sum of activity times with labor

EXAMPLE: SCOOTERS # of Workers = 3 (one for each activity)

Production Time = 35 Hours / week

Wage = $12 per hour

Demand (In March) = 125 Scooters / Week

Demand (In May) = 200 Scooters / Week

WORK PACED PROCESS LAY-OUT


Process Analysis – Example … :

Simple Sustainable Solutions Hakeem-Ur-Rehman 11

TASKS Task Duration

(SEC. / UNIT)

TASKS Task Duration

(SEC. / UNIT)

WORKER – 1:

1: Prepare cable 30

14: Trim and cap cable 59

2: Move cable 25 15: Place first rib 33

3: Assemble washer 100 16: Insert axles and cleats 96

4: Apply fork, threading cable end 66 17: Insert rear wheel 135

5: Assemble Socket head screws 114 18: Place second rib and deck 84

6: Steer pin nut 49 19: Apply grip tape 56

7: Brake shoe, spring, pivot bolt 66 20: Insert deck fasteners 75

TOTAL: 648

8: Insert front wheel 100 WORKER – 3:

21: Inspect and wipe-off 95

9: Insert axle bolt 30 22: Apply decal and sticker 20

10: Tighten axle bolt 43 23: Insert in bag 43

11: Tighten brake pivot bolt 51 24: Assemble carton 114

12: Assemble handle-cap 118

TOTAL: 792

25: Insert Xootr and manual 94

WORKER – 2:

13: Assemble brake lever and cable 110

26: Seal carton 84

TOTAL: 450




Worker–1 Worker–2 Worker–3

Activity Time 13 min. / Unit 11 min. / Unit 8 min. / Unit

Capacity 1/13 Unit/min.

= 4.61 Units/hour

1/11 Unit/min.

= 5.45 Units/hour

1/8 Unit/min.

= 7.5 Units/hour

Process Capacity Capacity of the bottleneck resource = 4.61 Units / hour

Flow Rate Demand = 125 Units / Week = 125 / 35 hours = 3.57 Units / hour

= Min{Demand, Process Capacity} = 3.57 Units / hour

Cycle Time (1/3.57) hours / Unit = 16.8 Minutes / Unit

Idle Time 16.8 – 13 =

3.8 minutes / Unit

16.8 – 11 =

5.8 minutes / Unit

16.8 – 8 =

8.8 minutes / Unit

Utilization 3.57/4.61 = 77% 3.57/5.45 = 65.5% 3.57/7.5 = 47.6%

Cost of Direct Labor =(3 X $12/h X 35h/W) / 125 S/week = $10.08 / Scooter

Average Labor Utilization =(32 min. / Unit) / {(32 min. / Unit) + (18.4 min. / Unit)} = 63.4%

WHEN DEMAND (IN MARCH) IS = 125 UNITS / WEEK




INCREASING CAPACITY BY LINE BALANCING

Line Balancing is the act of reducing such imbalances. It thereby provides the opportunity to:

o INCREASE THE EFFICIENCY OF THE PROCESS

by better utilizing the various resources, in this case labor.

o INCREASE THE CAPACITY OF THE PROCESS (without adding more resources to it)

by reallocating either workers from underutilized resources to the bottleneck

by reallocating work from the bottleneck to underutilized resources.

0

20

40

60

80

100

Worker-1 Worker-2 Worker-3

Utilization (%) 77 65.5 47.6

Per

cen

tage

(%

)

Worker’s Utilization (%)




WHEN DEMAND (IN MAY) IS = 200 UNITS / WEEK


Activity Time 13 min. / Unit 11 min. / Unit 8 min. / Unit

Capacity 1/13 Unit/min.

= 4.61 Units/hour

1/11 Unit/min.

= 5.45 Units/hour

1/8 Unit/min.

= 7.5 Units/hour

Process Capacity = Capacity of the bottleneck resource = 4.61 Units / hour

Flow Rate Demand = 200 Units / Week = 200 / 35 hours = 5.71 Units / hour

= Min{Demand, Process Capacity} = 4.61 Units / hour

(4.61X35 = 161.5 Units / week)

Cycle Time (1/4.61) hours / Unit = 13 Minutes / Unit

Idle Time 13 – 13 =

0 minutes / Unit

13 – 11 =

2 minutes / Unit

13 – 8 =

5 minutes / Unit

Utilization 4.61/4.61 = 100% 4.61/5.45 = 84.6% 4.61/7.5 = 61.5%

Cost of Direct Labor =(3 X $12/h X 35h/W) / 161.5 S/week = $7.80 / Scooter

Average Labor Utilization =(32 min. / Unit) / {(32 min. / Unit) + (7 min. / Unit)} = 82%




INCREASING CAPACITY BY LINE BALANCING: By Changing the Task

1st Iteration:

Worker–1: 674 seconds per unit (792 – 118) = 11.23 min. per unit

Worker–2: 635 seconds per unit (648 +118 – 56 – 75) = 10.58 min. per unit

Worker–3: 582 Seconds per unit (450 +56 +75) = 9.7 min. per unit


Activity Time 11.23 min. / Unit 10.58 min. / Unit 9.7 min. / Unit

Capacity 5.34 Units/hour 5.67 Units / hour 6.19 Units / hour

Process Capacity = 5.34 Units / hour

Flow Rate = 5.34 Units / hour

Cycle Time 1/5.34 hours / Unit = 11.23 Minutes / Unit

Idle Time 11.23 – 11.23 = 0 minutes / Unit

11.23 – 10.58 = 0.65 min. / Unit

11.23 – 9.7 = 1.53 min. / Unit

Utilization 5.34/5.34 = 100% 5.34/5.67 = 94.2% 5.34/6.19 = 86.3%

Average Labor Utilization =(31.51 min. / Unit) / {(31.51 min. / Unit) + (2.18 min. / Unit)} = 93.53%




2nd Iteration:

Worker–1: 623 seconds per unit (674 – 51) = 10.38 min. per unit

Worker–2: 602 seconds per unit (635 + 51 – 84) = 10.03 min. per unit

Worker–3: 665 Seconds per unit (581 + 84) = 11.08 min. per unit


Activity Time 10.38 min. / Unit 10.03 min. / Unit 11.08 min. / Unit

Capacity 5.78 Units/hour 5.98 Units / hour 5.41 Units / hour

Process Capacity = 5.41 Units / hour

Flow Rate = 5.41 Units / hour

Cycle Time 1/5.41hours / Unit = 11.08 Minutes / Unit

Idle Time 11.08 – 10.38 = 0.7 min. / Unit

11.08 – 10.03 = 1.05 min. / Unit

11.08 – 11.08 = 0 min. / Unit

Utilization 5.41/5.78 = 93.6% 5.41/5.98 = 90.5% 5.41/5.41 = 100%

Average Labor Utilization =(31.49 min. / Unit) / {(31.49 min. / Unit) + (1.75 min. / Unit)} = 94.7%

INCREASING CAPACITY BY LINE BALANCING: By Changing the Task …




INCREASING CAPACITY BY LINE BALANCING: By Changing the Task …

PROCESS IMPROVEMENT:

BASED ON THE NEW BOTTLENECK (WORKER–3):

o = (1/665) Units/Second X 3600 Seconds/Hour X 35 Hours/Week

o = 189.5 Units per Week.

o Thus, Compared to the Unbalanced line (161.5 Units per Week) The Increased

Process Capacity (and Flow Rate) by 17% (189.5–161.5= 28 Units).

COST OF DIRECT LABOR (for Unbalanced line):

o =(3 X $12/h X 35h/W) / 161.5 $/week = $7.80 / Scooter

COST OF DIRECT LABOR (Based on the New Bottleneck ):

o =(3 X $12/h X 35h/W) / 189.5 $/week = $6.65 / Scooter


Problems–Fix or Prevent:


Why does it always seem we have plenty of time to

fix our problems, but never enough time to prevent the problems by doing it right the

first time?


Failure Mode & Effect Analysis (FMEA):


FMEA is an Engineering “Reliability Tool” That:

Helps define, identify, prioritize, and eliminate known and/or potential

failures of the system, design, or manufacturing process before they reach

the customer. The goal is to eliminate the Failure Modes and reduce their

risks.

What it can do for you!

1. Identifies Design or process related Failure Modes before they happen.

2. Determines the Effect & Severity of these failure modes.

3. Identifies the Causes and probability of Occurrence of the Failure Modes.

4. Identifies the Controls and their Effectiveness.

5. Quantifies and prioritizes the Risks associated with the Failure Modes.

6. Develops & documents Action Plans that will occur to reduce risk.


Failure Mode & Effect Analysis (FMEA)… :


In what ways can

the process step

go wrong?

What is

the impact

of the

Failure

Mode on

the

customer?

How severe is the

effect on the customer?

What are

the causes

of the

Failure

Mode?

What are the

process steps?

What are

the existing

controls and

procedures

that prevent

the Cause

or Failure

Mode?

How often does the Cause

or Failure Mode occur?

How often does the Cause

or Failure Mode occur? RPN = S X O X D

What are the

actions for

reducing the

occurrence,

decreasing

severity or

improving

detection?

Who is

responsib

le f

or

the r

ecom

mended

action?


Failure Mode & Effect Analysis (FMEA)…:


There are three types of FMEA as given below:

1. System: focuses on global system function

2. Design: focuses on components and subsystems

3. Process: (Driven by process functions & part characteristics) A Process is a

sequence of tasks that is organized to produce a product or provide a service. A

Process FMEA can involve fabrication, assembly, transactions or services.

Same Strategy… Different Tactics


Process Failure Mode & Effect Analysis (PFMEA)…:


STEP 1: Determine the process steps to be considered Use Process Flow Diagrams to determine the processes

Conduct of PFMEA is limited to the current level of understanding of process

behaviors

STEP 2: Brainstorm – Potential Failure Modes generated by the process When defining failure modes – assume prior steps and incoming materials are

perfect.




STEP 3: Identify potential effects of each failure mode An effect of a failure is the consequence(s) of a failure mode that would be

noticed or experienced at the next station, or a subsequent operation, by adownstream user or by the ultimate customer.




STEP 4: Determine the SEVERITY of the effect

Severity is a rating corresponding to the seriousness of an effect of a potential

failure mode.

STEP 5: Determine potential cause for each failure mode Cause: It is description of how the process could result in a failure. (Use only first

level causes for this analysis)




Step 6: Rank the Occurrence of each Cause

The occurrence rating of each cause should reflect the relative occurrence of boththe failure and cause.

Step 7: Identify process controls currently used to DETECT the failure mode or

PREVENT the cause Detection is rating corresponding to the likelihood that current process will detect the

failure mode before it gets to the customer




Step 8: Calculate RPN

RPN = S X O X D

Step 9: Plan appropriate Corrective Action based on RPN

Corrective action measures must be taken to reduce the risk for the following

condition: (i.e.: RPN >100)




The purpose of any action is to reduce the occurrence and/or detection ranking. The

action plan should include:

Recommended action: must be defined to reduce the risk associated

Responsibility - the organization and/or individual responsible for the action and

the target date of completion

Action taken - a brief description of the actual completed action and the effective

date

Resulting RPN - after C/A has been taken, the occurrence and detection ranking

must be defined and the RPN recalculated

Hakeem-Ur-Rehman & Sajid Mahmood



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