Using Multi-layer Stream Mapping to assess the overall efficiency and waste of a production system: A case study from the plywood industry

AUTOMOBILE AND TRANSPORT
AERONAUTICS, SPACE AND
DEFENCE
22nd – 24th May 2016
Organized by: In cooperation with: Sponsored by:
Using Multi-layer Stream Mapping to assess the overall efficiency
and waste of a production system:
A case study from the plywood industry
E.J. Lourenço, J.P. Pereira, R. Barbosa, A. J. Baptista
António J Baptista
abaptista@inegi.up.pt

1. Introduction
2. MSM: Its origin and development since LCE 2013
3. Multi-Layer Stream Mapping description
4. Case study definition and results
5. Conclusions and remarks
AGENDA

1. Introduction
Main productivity issues of production systems:
 Productivity (output/h)
 Energy consumption
 Raw material and resource consumption
 Other variables, as quality, flow
IMPROVE THE
PERFORMANCE OF
PRODUCTION SYSTEMS
“If you can't measure it, you can't manage it”. (Peter Drucker)
The challenge: How to measure the overall efficiency / performance of a system ?

1. Introduction
Base aims of the Multi-Layer Stream Mapping methodology (LCE 2013)

1. Introduction
Base aims of the Multi-Layer Stream Mapping methodology (LCE 2013)
 Develop a multi-variable combined use of the Value Stream Mapping (VSM) Lean Tool
and demonstrate its suitability to assess environmental and energy efficiency of unit
processes and production systems in a flexible manner;
 Demonstrate the importance of presenting environmental issues and efficiency in a
simple manner through visual management maps and layouts for decision making and
overall awareness;
 Create an approach that is able to asses productivity, the efficiency and eco-efficiency of
a production system, since the tools and methods are not always directly applicable to
every product and/or production system, and often addressed as “isolated stage
analysis”;
 Create a very easily understandable assessment (for all level collaborators) based in fast
visual management attributes in most methods and tools used for eco-efficiency
assessments.

 Aim’s towards sustainable Value maximization and global waste reduction
Relates directly EFFICIENCY (%) << >> WASTE REDUCTION
 Wide spectrum of users utilization by its simplified analysis
Useful for analysis from the top management to the more operational worker
 Integrated / disaggregated view of information (strong and systematic data integration)
MSM Dashboards for easy to interpret information and results
 Fast identification of inefficiencies in critical or limiting process steps
Facilitated assessment of inefficient processes steps and their impact on the overall efficiency
 To relate (in)efficiency with process costs (that add value or just create waste)
Facilitated analysis of costs per process step / variable
List of characteristics of the MSM framework (1|2)

 Capacity to easily model and to assess efficiency and cost improvement scenarios
Generation of improvement scenarios, cost reductions quantification / simple payback analysis
 Intrinsic focus on efficiency continuous improvement and its sustainability over time
Intrinsic motivation towards efficiency and continuous improvement (“lean thinking”)
 Simplified lexicon and fast visual information assessment by MSM Scorecards
Adoption of visual management, with common colours, simple units (% or €, $, etc.)
 Three types of analysis: AD INITIO >> Greenfield designs
IN LOCO >> Static analysis of existing production systems
IN CONTINUUM >> Online monitoring of production systems
 Ability to be easily integrated into IT Management Systems and process large amount of data
Robust base algorithm to process large amount of data into information for decision support
List of characteristics of the MSM framework (2|2)

Value Stream Mapping (VSM) with application of Lean Principles
Pillar 1: Assess Value Addition versus not adding value

 A value stream mapping consists in the collection of all actions (that add value and
actions that do not add value) that are required to bring a product through the
main production ﬂow, starting from the customer and ending at the raw-material
(upstream).
 The primary goal of this tool is to identify all types of waste in the value stream in
order to take actions for the waste elimination and towards value increase
Example of a common VSM of a Metalworking Industry
Transport
WTS
(input)
Cleaning
WTS
Coating bolt
holes
(manually)
Mixing paint
(pneumatic
mixer)
Applying
primer coat
Drying
primary
coat
Coating
Inspection
2 2 2 2 2 2 2
VA 0,75 h 0,50 h 0,50 h 1,50 h 3,00 h 0,50 h PT 6,75 h
NVA LT 7,89 h
0,38 h 0,03 h 0,20 h 0,15 h 0,15 h 0,06 h WT 1,14 h
𝜑 86%0,70 h0,53 h1,13 h0,17 h
- 66% 94% 71% 89%
Production
Time (hours)
0,56 h3,15 h1,65 h
0,17 h
91% 95%

Pillar 1: Assess value addition versus not adding value
 The VSM root transforms, in the MSM concept, the understanding of efficiency
assessment into something easily quantifiable, simpler, concise and directly
applicable to any production system, in a process sequence or even in
compartmented units
 The combined use of Value Stream Layers of a Value Stream Map emerges in order
to “see beyond” the global environmental and financial performance of a
production system in a simpler manner
 Enables the understanding of the overall efficiency assessment, and at the same
time simplify the identification and quantification of specific inefficiency situations
 Combines the assessment of resource efficiency with other type of variables, such
as control variables (operations control), enabling the connection of both
efficiency assessment and effectiveness assessment.

Evaluating variables (KPI)
via efficiency ratios
Pillar 2: Systematically
evaluate variables (and KPIs)
through efficiency ratios

Pillar 2: Systematically evaluate variables (and KPIs) through efficiency ratios
 Identify all the variables that influence the stages of the value chain
 Create Key Performance Indicators (KPI) for the variables in the form of ratios
 Values of the ratios should be always within the range [0-100%]
 KPI always created in order to be always maximized
Basic form for the KPI formula
Φ
“Value added” fraction
“Value added” fraction + “Non-value added” fraction

 The MSM consists in replicating part of the approach used for Value Stream
Mapping, but allowing the addition of multiple layers (for each process or stage
variable)
VSM
MSM
ØTPi
=
PTPi
LTPi
[%]
ØEPi
=
PEPi
TEPi
[%]
ØCPi
=
PCPi
TCPi
[%]
ØXPi
=
PXPi
TXPi
[%]

 The values in the lower line segments are those which do not add value to the product, i.e.
representing the waste /misuses of time, resources, costs, etc.
 The values on the upper line segments are those that add value to the product, thus representing
the “useful consumption” within the stream or system.
ØTP1
ØTPi
ØTP2
ØEP1
ØEPi
ØEP2
ØCP1
ØCPi
ØCP2
ØXP1
ØXPi
ØXP2

Visual Management
Pillar 3: Apply simple
methodologies of Visual
Management

Pillar 3: Apply simple methodologies of Visual Management
Process Efficiency 100 - 90%
Process Efficiency <40%
 Relate the level of efficiency with 4-color type of systems analysis (red, orange, yellow,
green) in the direction of increased efficiency [0-100%]
Process Stream Analysis
Multi-LayerStreamMapping

Calculate overall efficiency of processes/systems (bottom-up analysis)
4th Pillar: Aggregate efficiency of unit processes (columns) and the variables (lines)
Visual Management
Pillar 3: Apply simple
methodologies of Visual
Management

Efficiency Process Stream Analysis
Cleaning
WPTS
Coating
bolt holes
Mixing
paint
Applying
primer
Drying Inspection
2 2 2 2 2 2
Unit Process Efficiency
Process Efficiency 100 - 90% Process Efficiency 69 - 40%
Process Efficiency 89 - 70% Process Efficiency <40%
79% 83% 70% 69% 85% 90% 79%
Production Time (hours) 67% 94% 70% 90%
MSM(resourceefficiency)
90% 80% 82%
Electrical Energy Consumption 69% 65% 70% 65% 80% 95% 74%
85% - 85%Diesel Consumption (kg) - - - 85%
Paint & Curing agent & Diluent
Consumption (kg)
- 90% - 35% - - 63%
Auxiliary Material Consumption (kg) 100% - - -
Proper Waste Disposal (kg) - - - -
- - 100%
- 95% 95%
Key
Global efficiencyMSM® efficiency card

P3
60%
P2
60%
P1
90%
P4
75%
Company
71%
L1 L2
L3
61% 62%
57%
Lines
Plant

Desegregated Cost Analysis by monetizing the MSM KPI values
Added value costs vs. non added value costs
Labour
(k€)
Energy costs
(k€)
Water costs
(k€)
Diesel costs
(k€)
Packaging costs
(k€)
Non-value addedValue added
Costs(Euros)
due to confidentiality reasons the values are uncharacterized

PDCA
5 S
DMAIC
5 why
SMED
TPM
7 Wastes
VSM
Performance Assessment
Continuous
Improvement
MSM’s position regarding other Lean Tools

MSM Strengths – Vision of the MSM with online monitoring (sensors IoT)
Aligned with the Industry 4.0 new challenges

MSM Strengths – Versatile Analysis by “Efficiency Cards”
Efficiency
Fingerprint
Summary
analysis
Other KPI
OEE
bottlenecks
ResultsInputs
Inventory
Value added and
non value added Customized
Continuous
Improvement
MSM Scorecard RESOURCES
MSM Scorecard OPERATIONS
MSM Scorecard FLOW
MSM Scorecard DOMAIN X
Energy Efficiency Materials

Unit Process (Stages) Description
Feeding table Supply the conveyer with boards (automatically)
Calibrating
Consist in calibrating the board's thickness using coarse and
medium sand paper
Sanding
Consist in sanding the MDF boards to obtain a smooth finish and
guarantee the specification thickness
Cutting
The cutting process consists of two steps, vertical cutting and
longitudinal cutting, during these steps the MDF boards are also
calibrated in terms of width and length
Stacking
During this unit process the MDF boards, already cut, are stacked,
and the protection board is placed on the top
Packing
This unit process is carried out by placing cardboard and the base
studs, finally the strapping PET tape placed
Plywood boards finishing line description

Plywood boards finishing line description
Resource and
energy variables
Time (h)
Electrical energy (kWh)
Diesel (l)
Appropriate referral of waste (kg)
Linear meters sanded per sandpaper
(m)
Sandpaper utilization (m2)
Operational
variables
Quality (units)
Length (mm)
Width (mm)
Thickness (mm)
Planned down time (min)
Planned production time (min)
Unplanned down time (min)
Analysed variables: KPI for Operational Variables
• Adopt statistical control technics,
applying control bands to set the
boundary limits (“area tend to
add value”)
• Penalize function that accounts
for the waste areas (“tend to
create waste”)
• Assessment of effectiveness,
rather than efficiency
Counts (N)
Variable
value

Resource efficiency assessment
- 100%
93%- 100% 80% - - -
- 100% 100% - -
- 100% 100% - -
- - 95% - 95%
18% 62%
Sandpaper utilization (m2
)
Linear meters sanded per
sandpaper (m)
Appropriate referral of waste
(kg)
Diesel (l)
Electrical energy (kWh) 65% 71% 76% 75% 70%
100% 100%
95%-
56% 71%
Time (h) 78% 50% 67% 9% 70% 12% 36%
Resource overall efficiency 71% 84% 85% 60% 70%
Packing
0,42 0,42 0,42 0,58 0,58 0,58
Stacking
Unit processes
Feeding table Calibrating Sanding Cutting
Product : Plywood board Functional Unit: m3 Period of analysis: 1 year

Operation efficiency assessment
- 100% -
99% 98% 99% - -
- 100%
Thickness (mm)
Width (mm)
Length (mm) - - - - 100%
- 99%
100%- - -
100% 98%Quality (units)
67% 67% 67% 67% 67% 67% 67%Speed Loss (min)
100% 100% 86% 100% 100%
77% 80%
Availability (min) 62% 62% 62% 62% 62% 62% 62%
Operation overall efficiency 82% 82% 79% 77% 86%
Packing
0,42 0,42 0,42 0,58 0,58 0,58
Stacking
Unit processes

Overall dashboard
(Operation & resource efficiency)
INFORMATIVE VARIABLES
59% 23% 51%
42% 41%42%
Bottleneck 100% 41% 50% 31%
OEE 42% 42% 36% 42%
56% 71%
Overall Operation efficiency
(%)
82% 82% 79% 77% 86% 77% 80%
Overall resource efficiency (%) 71% 84% 85% 60% 70%
Overall production system
Performance (%)
59% 69% 67% 46%
Unit processes
43% 57%
Packing
0,42 0,42 0,42 0,58 0,58 0,58
Stacking
60%

Disaggregated Cost Analysis (€ / m3)
- €
1,0 €
2,0 €
3,0 €
4,0 €
5,0 €
6,0 €
7,0 €
8,0 €
9,0 €
Packing
materials
Electrical
Energy
Labour Sandpaper Diesel
Value added Non value added
14,31 €
81%
€3,29
19%

 MSM approach brings a new perspective to assess Overall Performance of a System, since results
can be quantified by a discreet method for a process sequence or a individual system
 It integrates strong visual management attributes and is mathematically simple (very easy to use
for all kind of stakeholders)
 The Multi-layer Stream Mapping enables to calculate the aggregation efficiency of different aspects
of management of a system, by the integration of different “MSM EFFICIENCY CARDS”
 Very versatile and wide range concept that can be applied for multi-variable and multiple-domain
activities (project management, logistics, economics, services, health care, etc.)
 Other potential characteristics
 Simple warning programming (Alarmistic) to assist in maintenance
 Support the simplified identification of root causes of problems
 Simplified ROI for improvement actions analysis (payback)
 Easy tracking of indicators on the production line
 Great alignment with Industry 4.0 (“sensing enterprise”, “Internet of Things”, etc.)
 Inductor culture of continuous improvement and focus on reducing waste

Other MSM applications Wine Vineyard Farm (ongoing project)
Other past or ongoing projects:
 Textil Industry
 Process Industry – SPIRE H2020
MAESTRI Project - ongoing
 Aeronautics – CLEAN SKY H2020
PÁSSARO (with Airbus Spain) - ongoing
Bed 2
Bed 3
Bed 1

Thank you for your attention
Using Multi-layer Stream Mapping to assess the overall efficiency and
waste of a production system: A case study from the plywood industry
António J Baptista (abaptista@inegi.up.pt)

Using Multi-layer Stream Mapping to assess the overall efficiency and waste of a production system: A case study from the plywood industry

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