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Continuous Flow vs Batch Production
January 12, 2019
by Julian Kalac, P.Eng
Lean Six Sigma Master Black Belt
1
2
3
Shipped on time and customer happy
We Made $$$$
ProductionMaterial
Ship order
CUSTOMER
• No Wasted Time
• No Wasted Money
• No Wasted Resources
• No Wasted Material
? ?
99%
Customer Quality
The truth
4
The Hidden Factory
$50000-material
scrap costs
$350,000 transportation costs
Lost order
Wrong order shipped
ProductionMaterial
Ship order CUSTOMER
Hidden Factory
 The systematic elimination of waste and re-alignment of resources to
deliver value to the customer faster, better, & more
consistently
 Lean also is:
◦ Pursuit of excellence
◦ Continuous Improvement of performance and quality
◦ .
◦ Increasing inventory “turns” and throughput
◦ Simplifying and redefining processes
◦ Measuring & monitoring processes
◦ Empowering the workforce (80%)
Leading to Leading to
Eliminate
Waste
Reduced Cycle
Times
Increased
Capacity
Focus: Eliminate waste, non-value add steps, process constraints
and bottle necks that cause problems in work
Value Added
Typically 95% of all lead time is non-value added
1. Overproduction
2. Waiting
3. Transportation
4. Non-Value Added Processing
5. Excess Inventory/Material
6. Defects
7. Excess Motion
8. Underutilized People
Non-Value Added
5%
| | 8
 Lack of cross-functional training
 Over relying on a select few while others
are Inadequately trained
 Operators are unable to rotate and help
each other out to balance the work-load
 High overtime, increased pressure stress
 Workers can do each others work, help out
when someone is sick, on holidays, quit
 Workers help improve bottleneck operations
by helping out each other
 Variety in work making it more full-filling
 Training new workers
10
11
 Cycle Time is dictated by the slowest (bottleneck)
operation in the cell.
40 min
20 min
25 min
15 min
30 min
1
54
3
2
•What operation controls the cycle?
•How can you relieve the bottleneck?
 Bottleneck
◦ The point which is currently reducing the
flow or slowing the entire process
◦ A managed buffer before a bottleneck is
necessary
◦ A bottleneck WILL exist in every process
◦ Bottlenecks move !
◦ High WIP can mask the bottleneck
◦ The people working at the bottleneck take
breaks, not the bottleneckSource: Improve Phase 26jul07
14
1
1
1
FABRICATION BATCH VSM –Total Cycle Time= 9.1 days
Customer Complaint
Total Cycle Time = 9 days
Value Added Time = 14 min
1 people
C/T = 2 min
C/O = 3 hr
Uptime = 71%
Inspection
2 people
CNC 1
C/T = 4 min
C/O = 2 hr
Uptime = 64%
2 people
C/T = 10 min
C/O = 4 hr
Uptime = 28%
WELD
2 QC
Late Delivery
5 min1 min1 min
2 days 3 day2 days 1 days
Production
Order
WK
D
Wk
6 WEEKS INVENTORY
DELIVERED EVERY
SHIPMENT TO SAVE
ON TRANSPORTATION
COSTS C/T = 12 min
C/O = 30 min
Uptime = 83%
175T PRESS
1 days
0
Customer
BSupplier
1
Supplier
2
3 weeks
lead time
WIP WIP
VA Time
NVA Time
I
30% REWORK
14% SCRAP
I
3x Week
Market Forecast
Total Cycle Time = 4.1 hrs
Value Added Time = 7 min
Customer
A
Customer
B
1 people
C/T = 2 min
C/O = 20 min
Uptime = 88%
CNC 2
1 people
CNC 1
C/T = 4 min
C/O = 0.5 hr
Uptime = 78%
1 people
C/T = 3 min
C/O = 30 min
Uptime = 67%
ROBOT WELD
1 people
Shipping
Production
Control
Supplier
1
Supplier
2
C/T = 2 min
C/O = 30 min
Uptime = 93%
PRESS
D
I
3 min2 min2 min
1 hr 1 hr1 hr1 Hr
2 min
INVENTORY TURN-
OVER RATE
NVA Time
VA Time
1 Piece Flow and continuos feedback loop
1 % SCRAP
BATCH vs LEAN 1 PCS CONTINUOUS FLOW
BATCH LEAN
Pcs CRIMPING PULL TESTING FINAL ASSY PACKING Sec/Pc CRIMPING PULL TESTING FINAL ASSY PACKING Sec/Pc
SETUP TIME
(SEC)
300 5 5 0 310 300 5 5 0 310
1 10 14 8 10 1 10 14 8 10 42.0
2 10 14 8 10 2 10 14 8 10 14.0
3 10 14 8 10 3 10 14 8 10 14.0
4 10 14 8 10 4 10 14 8 10 14.0
5 10 14 8 10 5 10 14 8 10 14.0
6 10 14 8 10 6 10 14 8 10 14.0
7 10 14 8 10 7 10 14 8 10 14.0
8 10 14 8 10 8 10 14 8 10 14.0
9 10 14 8 10 9 10 14 8 10 14.0
10 10 14 8 10 10 10 14 8 10 14.0
400 145 85 100 10 478
+ + + 1040
Totsl Cycle Time 10Pcs
(sec)
478 478
17 Cycle Time 10pcs (min) 7.97 42
1030 First Part Packed (sec) 42 7.97
1040 Last Part packed (sec) 478
104 Avg cycle time /Pc (sec) 47.8
104sec/p 47sec/pc
CURRENT STATE EATS VSM
Customer Demand
Total Non-Value Add Time = 4.5 days
Value Added Time = 173 min (2.8Hrs)
2 operator
C/T = 34 min
C/O = 0.5 hr
Uptime = 61%
Joining &
Inspection
2 operator
Tacking
C/T = 52 min
C/O = 0.5 hr
Uptime = 86%
1 operator
C/T = 47 min
C/O = 0 hr
Uptime = 78%
Manual
Weld
1 QC+ 1 welders
8 sets/day
47 min34 min52 min
1 day 2 day1 day 0.5 days
Production
Order
WK
D
Wk
INVENTORY
C/T = 40 min
C/O = 0 min
Uptime = 83%
Robot Weld
40
Customer
BLaser Break
Press
WIP WIP
VA Time
NVA Time
I
REWORK
Batch & Que Production
3x Week
Market Forecast
Total Non-Value Add Time = 1.5 days
Value Added Time = 114 min ~2 Hrs
Customer
A
Customer
B
0.5 operator
C/T = 44 min
C/O = 5 min
Uptime = 70%
0.5 operator
Tacking
C/T = 30 min
C/O = 0.5 hr
Uptime = 85%
1 QC+ 1 welders
C/T = 40 min
C/O = 0 min
Uptime = 95%
Joining &
Inspection
12 sets/day
Production
Control
Laser Break
Press
Robot 7
D
40 min44 min30 min
0.5 days 1 days0 days
INVENTORY TURN-
OVER RATE
NVA Time
VA Time
1 Pc continuous flow
30 min
20 min25 min
25 min
30 min
1
54
3
2
•What is the process cycle time?
•What is the process bottleneck?
New Cycle Time = 30min
 Get All Your Needed Material Before You Start!
 Set-up equipment as close as possible together
so you can pass parts without using boxes
 Eliminate WIP BOXES
 Set-up a white board and record hourly PPMH
compared to target.
 List any issues you have during the run
 Run 1 order at a time in the cell until it’s
completed and then next order
2
2

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Batch & Queue vs Lean Continuous Flow

  • 1. Continuous Flow vs Batch Production January 12, 2019 by Julian Kalac, P.Eng Lean Six Sigma Master Black Belt 1
  • 2. 2
  • 3. 3 Shipped on time and customer happy We Made $$$$ ProductionMaterial Ship order CUSTOMER • No Wasted Time • No Wasted Money • No Wasted Resources • No Wasted Material ? ? 99% Customer Quality
  • 4. The truth 4 The Hidden Factory $50000-material scrap costs $350,000 transportation costs Lost order Wrong order shipped ProductionMaterial Ship order CUSTOMER Hidden Factory
  • 5.  The systematic elimination of waste and re-alignment of resources to deliver value to the customer faster, better, & more consistently  Lean also is: ◦ Pursuit of excellence ◦ Continuous Improvement of performance and quality ◦ . ◦ Increasing inventory “turns” and throughput ◦ Simplifying and redefining processes ◦ Measuring & monitoring processes ◦ Empowering the workforce (80%) Leading to Leading to Eliminate Waste Reduced Cycle Times Increased Capacity Focus: Eliminate waste, non-value add steps, process constraints and bottle necks that cause problems in work
  • 6.
  • 7. Value Added Typically 95% of all lead time is non-value added 1. Overproduction 2. Waiting 3. Transportation 4. Non-Value Added Processing 5. Excess Inventory/Material 6. Defects 7. Excess Motion 8. Underutilized People Non-Value Added 5%
  • 8. | | 8  Lack of cross-functional training  Over relying on a select few while others are Inadequately trained  Operators are unable to rotate and help each other out to balance the work-load  High overtime, increased pressure stress
  • 9.  Workers can do each others work, help out when someone is sick, on holidays, quit  Workers help improve bottleneck operations by helping out each other  Variety in work making it more full-filling  Training new workers
  • 10. 10
  • 11. 11
  • 12.  Cycle Time is dictated by the slowest (bottleneck) operation in the cell. 40 min 20 min 25 min 15 min 30 min 1 54 3 2 •What operation controls the cycle? •How can you relieve the bottleneck?
  • 13.  Bottleneck ◦ The point which is currently reducing the flow or slowing the entire process ◦ A managed buffer before a bottleneck is necessary ◦ A bottleneck WILL exist in every process ◦ Bottlenecks move ! ◦ High WIP can mask the bottleneck ◦ The people working at the bottleneck take breaks, not the bottleneckSource: Improve Phase 26jul07
  • 14. 14
  • 15. 1
  • 16.
  • 17. 1
  • 18. 1
  • 19. FABRICATION BATCH VSM –Total Cycle Time= 9.1 days Customer Complaint Total Cycle Time = 9 days Value Added Time = 14 min 1 people C/T = 2 min C/O = 3 hr Uptime = 71% Inspection 2 people CNC 1 C/T = 4 min C/O = 2 hr Uptime = 64% 2 people C/T = 10 min C/O = 4 hr Uptime = 28% WELD 2 QC Late Delivery 5 min1 min1 min 2 days 3 day2 days 1 days Production Order WK D Wk 6 WEEKS INVENTORY DELIVERED EVERY SHIPMENT TO SAVE ON TRANSPORTATION COSTS C/T = 12 min C/O = 30 min Uptime = 83% 175T PRESS 1 days 0 Customer BSupplier 1 Supplier 2 3 weeks lead time WIP WIP VA Time NVA Time I 30% REWORK 14% SCRAP I
  • 20. 3x Week Market Forecast Total Cycle Time = 4.1 hrs Value Added Time = 7 min Customer A Customer B 1 people C/T = 2 min C/O = 20 min Uptime = 88% CNC 2 1 people CNC 1 C/T = 4 min C/O = 0.5 hr Uptime = 78% 1 people C/T = 3 min C/O = 30 min Uptime = 67% ROBOT WELD 1 people Shipping Production Control Supplier 1 Supplier 2 C/T = 2 min C/O = 30 min Uptime = 93% PRESS D I 3 min2 min2 min 1 hr 1 hr1 hr1 Hr 2 min INVENTORY TURN- OVER RATE NVA Time VA Time 1 Piece Flow and continuos feedback loop 1 % SCRAP
  • 21. BATCH vs LEAN 1 PCS CONTINUOUS FLOW BATCH LEAN Pcs CRIMPING PULL TESTING FINAL ASSY PACKING Sec/Pc CRIMPING PULL TESTING FINAL ASSY PACKING Sec/Pc SETUP TIME (SEC) 300 5 5 0 310 300 5 5 0 310 1 10 14 8 10 1 10 14 8 10 42.0 2 10 14 8 10 2 10 14 8 10 14.0 3 10 14 8 10 3 10 14 8 10 14.0 4 10 14 8 10 4 10 14 8 10 14.0 5 10 14 8 10 5 10 14 8 10 14.0 6 10 14 8 10 6 10 14 8 10 14.0 7 10 14 8 10 7 10 14 8 10 14.0 8 10 14 8 10 8 10 14 8 10 14.0 9 10 14 8 10 9 10 14 8 10 14.0 10 10 14 8 10 10 10 14 8 10 14.0 400 145 85 100 10 478 + + + 1040 Totsl Cycle Time 10Pcs (sec) 478 478 17 Cycle Time 10pcs (min) 7.97 42 1030 First Part Packed (sec) 42 7.97 1040 Last Part packed (sec) 478 104 Avg cycle time /Pc (sec) 47.8 104sec/p 47sec/pc
  • 22. CURRENT STATE EATS VSM Customer Demand Total Non-Value Add Time = 4.5 days Value Added Time = 173 min (2.8Hrs) 2 operator C/T = 34 min C/O = 0.5 hr Uptime = 61% Joining & Inspection 2 operator Tacking C/T = 52 min C/O = 0.5 hr Uptime = 86% 1 operator C/T = 47 min C/O = 0 hr Uptime = 78% Manual Weld 1 QC+ 1 welders 8 sets/day 47 min34 min52 min 1 day 2 day1 day 0.5 days Production Order WK D Wk INVENTORY C/T = 40 min C/O = 0 min Uptime = 83% Robot Weld 40 Customer BLaser Break Press WIP WIP VA Time NVA Time I REWORK Batch & Que Production
  • 23. 3x Week Market Forecast Total Non-Value Add Time = 1.5 days Value Added Time = 114 min ~2 Hrs Customer A Customer B 0.5 operator C/T = 44 min C/O = 5 min Uptime = 70% 0.5 operator Tacking C/T = 30 min C/O = 0.5 hr Uptime = 85% 1 QC+ 1 welders C/T = 40 min C/O = 0 min Uptime = 95% Joining & Inspection 12 sets/day Production Control Laser Break Press Robot 7 D 40 min44 min30 min 0.5 days 1 days0 days INVENTORY TURN- OVER RATE NVA Time VA Time 1 Pc continuous flow
  • 24. 30 min 20 min25 min 25 min 30 min 1 54 3 2 •What is the process cycle time? •What is the process bottleneck? New Cycle Time = 30min
  • 25.  Get All Your Needed Material Before You Start!  Set-up equipment as close as possible together so you can pass parts without using boxes  Eliminate WIP BOXES  Set-up a white board and record hourly PPMH compared to target.  List any issues you have during the run  Run 1 order at a time in the cell until it’s completed and then next order 2
  • 26. 2