process improvement techniques

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  • PROCESS ANALYSIS & IMPROVEMENT

    TECHNIQUES

    Simple Sustainable Solutions 1

    Process Analysis & Improvement Techniques

    Trainers:

    HakeemUrRehman

    &

    Sajid Mahmood

    Simple Sustainable Solutions

  • Process Analysis & Improvement Techniques

    Outline:

    Simple Sustainable Solutions 2

    Process Def.

    Process Flow Diagram

    o How to Draw?

    o Value Added Vs NonValue Added Activities

    Process Analysis

    o Bottleneck Analysis

    o Productivity / Process Improvement through Line Balancing

    Process FMEA

    Hakeem-Ur-Rehman & Sajid Mahmood

  • Process Analysis & Improvement Techniques

    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 Analysis & Improvement Techniques

    Process: Def.

    Simple Sustainable Solutions Hakeem-Ur-Rehman & Sajid Mahmood 4

    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 Analysis & Improvement Techniques

    Process Flow Diagram:

    Simple Sustainable Solutions Hakeem-Ur-Rehman & Sajid Mahmood 5

    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 Analysis & Improvement Techniques

    Process Flow Diagram :

    Simple Sustainable Solutions Hakeem-Ur-Rehman & Sajid Mahmood 6

    What you THINK it is

    What it ACTUALLY is

    What it SHOULD be

  • Process Analysis & Improvement Techniques

    Process Mapping Levels:

    Simple Sustainable Solutions Hakeem-Ur-Rehman & Sajid Mahmood 7

    LEVEL1: The Macro Process Map, sometimes called a Management Level or viewpoint.

    LEVEL2: The Process Map, sometimes called the worker level or viewpoint. This example is

    from the perspective of the pizza chef.

    LEVEL3: The Micro Process Map, sometimes called the Improvement level or viewpoint.

    Similar to a level2, 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.

  • Process Analysis & Improvement Techniques

    Value Added & NonValue Added:

    Simple Sustainable Solutions Hakeem-Ur-Rehman & Sajid Mahmood 8

    Value Added Activity

    Transforms or shapes material or information or people

    And its 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 & Improvement Techniques

    Process Analysis Vocabulary:

    Simple Sustainable Solutions Hakeem-Ur-Rehman & Sajid Mahmood 9

    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 & Improvement Techniques

    Process Analysis Vocabulary :

    Simple Sustainable Solutions Hakeem-Ur-Rehman & Sajid Mahmood 10

    WORKERPACED Process:

    o TIME THROUGH EMPTY PROCESS = Sum of the activity times

    WORK PACED PROCESS LAY-OUT

    MACHINE PACED PROCESS LAY-OUT

    MACHINEPACED Process:

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

    (Activity time of the bottleneck step)

  • Process Analysis & Improvement Techniques

    Process Analysis Vocabulary :

    Simple Sustainable Solutions Hakeem-Ur-Rehman & Sajid Mahmood 11

    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 & Improvement Techniques

    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

  • Process Analysis & Improvement Techniques

    Process Analysis Example :

    Simple Sustainable Solutions Hakeem-Ur-Rehman & Sajid Mahmood 13

    Worker1 Worker2 Worker3

    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

  • Process Analysis & Improvement Techniques

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