A Lean RACE Model for Continuous Improvement in Four...

A Lean RACE Model for Continuous Improvement in Four Possible Directions

Hung-da Wan, Associate Professor

Department of Mechanical EngineeringCenter for Advanced Manufacturing and Lean Systems

The University of Texas at San Antonio (UTSA)

University of Texas at San Antonio (UTSA) 1

“Current State” mapped.

Now what? How do we identify improvement opportunities?

Which lean tools should be used?


?C/T=1 sec

C/O=1 hour

Uptime=85%

27,600 sec. av.

EPE=2weeks

Production Control

MRP

Weekly Schedule Daily Ship

Schedule

I IIIII200 T

Stamping

Staging

ShippingAssembly#2Assembly#1S. Weld#2S. Weld#1

C/T=40 sec

C/O=0

Uptime=100%

2 Shifts

27600 sec. Av.

C/T=62 sec

C/O=0

Uptime=100%

2 Shifts

27600 sec. Av.

C/T=46 sec

C/O=10 min

Uptime=80%

2 Shifts

27600 sec. Av.

C/T=39 sec

C/O=10 min

Uptime=100%

2 Shifts

27600 sec. Av.

Coils

5 days

4600L

2400R

1100L

600R

1600L

850R

1200L

640R

2700L

1440R

Michigan

Steel Co.

18,400 pcs/mo

-12,000 “L”

-6,400 “R”

Tray= 20 pieces

2Shifts

State Street

Assembly

90/60/30 day

Forecasts6 week

Forecast

Daily

Order

Weekly

Fax

Tues.+

Thurs.

1X

Daily

1 1 1 1

The “7+1 Types of Waste” in TPS


8 Types of Waste

Defects

Overproduction

Waiting

Non-utilized Resources/Talent

Transportation

Inventory

Motion

Excess Processing

After current state mapped, we often do “Waste Audit” based on Toyota’s 8 wastes.

The 8 types of wastes are “symptoms” of problems, not root causes.

Good starting point, but not necessarily leading to good improvement opportunities.

Process Improvement Methods

Lean Daily Management

Value Stream Mapping

Six Sigma’s DMAIC

Deming’s PDCA

A3 + 8 Step

How to prioritize the improvement targets?

How to identify opportunities for improvement?

How to define the target to be measured and analyzed?

How to pick the right target for the problem solving cycle?

How to set correct targets for root cause analysis?


Let’s zoom out and think about the fundamentals.

What should a good “value stream” do?


C/T=1 sec

C/O=1 hour

Uptime=85%

27,600 sec. av.

EPE=2weeks

Production Control

MRP

Weekly Schedule Daily Ship

Schedule

I IIIII200 T

Stamping

Staging

ShippingAssembly#2Assembly#1S. Weld#2S. Weld#1

C/T=40 sec

C/O=0

Uptime=100%

2 Shifts

27600 sec. Av.

C/T=62 sec

C/O=0

Uptime=100%

2 Shifts

27600 sec. Av.

C/T=46 sec

C/O=10 min

Uptime=80%

2 Shifts

27600 sec. Av.

C/T=39 sec

C/O=10 min

Uptime=100%

2 Shifts

27600 sec. Av.

Coils

5 days

4600L

2400R

1100L

600R

1600L

850R

1200L

640R

2700L

1440R

Michigan

Steel Co.

18,400 pcs/mo

-12,000 “L”

-6,400 “R”

Tray= 20 pieces

2Shifts

State Street

Assembly

90/60/30 day

Forecasts6 week

Forecast

Daily

Order

Weekly

Fax

Tues.+

Thurs.

1X

Daily

1 1 1 1

5 days 1 second 7.6 days 39 sec. 1.8 days 46 sec. 2.7 days 62 sec. 2 days 40 sec. 4.5 d.

Production

Lead = 23.6 days

Time

Value-

Added = 188 sec.

Time

Take jobs in

Route jobs through the processes

Consume resources and time

Provide “value” to customers

Lean: Route the jobs through the system effectively and efficiently.

Performance: Cost, Lead Time, Value Provided

Four Aspects of Continuous Improvement- The “Lean-RACE” Model

6

Production Routing(i.e., Value Stream)

Reduce non-value-added (NVA) activities to decrease interruptions in flow

Accelerate value-added processes to improve throughput and lead time

Consolidate value-added processes into fewer steps to shorten the value stream

Enhance Value-Cost ratio of products and processes to improve competitiveness in marketplace

“Seven Zeros” of

An Ideal System

•Zero Defects

•Zero (Excess) Lot Size

•Zero Setups

•Zero Breakdowns

•Zero (Excess) Handling

•Zero Lead Time

•Zero SurgingEdwards, J.N. (1983)

University of Texas at San Antonio (UTSA)

1) Reduce NVA

Reduce non-value-added (NVA) activities to decrease interruptions in flow

Methods All Lean-Six Sigma tools to stabilize & standardize

processes and to eliminate the 8 wastes.

Examples 5S, Visual Aid, Standardized Work: Standardize

processes and stabilize the performance

Kanban, Heijunka, SMED: Streamline the job flow


Waste!

Necessary

NVAValue

Adding

(Non-Value

Adding)

2) Accelerate VA

Accelerate value-added processes to improve throughput and lead time

Methods Theory of Constraints (TOC), Technology Deployment

Examples Add more operators at the bottleneck to improve

system capacity

Use better/faster equipment and/or automationto increase throughput


3) Consolidate VA

Consolidate value-added processes into fewer steps to shorten the value stream

Methods Time Study, Workload Balancing, Cellular Layout,

Moving Flowline, Technology Deployment, ...

Examples Combine dispersed processes in an inefficient

routing into a production cell

Use moving flowline to conduct processes (assembly, baking, etc.) while being moved


Production CellPre-application

8 hrs 80 hrs 80 hrsGather financial

data = 15 m

Run credit

report = 15 m

Determine prgm

= 120 m

Application

Verify emply &

assets = 60 m

Underwriting =

120 m

Approval/Title

Order appraisal

& title = 20 m

File paperwork

pending = 5 m

Closing Prep

Notify parties &

confirm = 120 m

Schedule

location = 5 m

Print docs

= 120 m

4) Enhance Value Provided

Enhance Value-Cost ratio of products and processes to improve competitiveness in marketplace

Methods VOC & CTQ, Value Engineering, SPC, Marketing, …

Examples Ball Bearing: Improve process capability

Higher-grade products

Awning: Faster & more accurate delivery Higher-end market


3s

6s

No just yet!

Before the future state is mapped, the trade-offs of improvement opportunities should be evaluated.


150 min

8 hrs

180 min

80 hrs

25 min

80 hrs

245 min

240 hrs

Pre-application

8 hrs 80 hrs 80 hrs 40 hrs

Client

Gather financial

data = 15 m

Run credit

report = 15 m

Determine prgm

= 120 m

Application

Verify emply &

assets = 60 m

Underwriting =

120 m

Approval/Title

Order appraisal

& title = 20 m

File paperwork

pending = 5 m

Closing Prep

Notify parties &

confirm = 120 m

Schedule

location = 5 m

Print docs

= 120 m

(10 days) (10 days) (5 days)(1 day)

LevelingFIFO Lane

Standard

Work

Runner

Folder

System

5S

Kanban

Supplies

Cross

Training

Pitch Folders

5) Tradeoffs Force Field Analysis


Be aware that a solution for one performance metric may have adverse impact on others.

Examples:

Throughput Cost Time Value

5 0 -5 5 0 -5 5 0 -5

Replace a manual operation by robot

Improve Error-Proof device

High investment Reduced Cycle Time

Stable quality

Investment offset by less inspection

Less inspection time

Better quality

5 0 -5

Higher OutputOverproduction?

Higher Yield

Case #1 – A DMAIC Project of a University Service Center

Define Measure Analyze Improve Control


Time to issue invoice: 6 – 8 weeks

-10

0

10

20

30

40

50

60

70

80

1 5 91

31

72

12

52

93

33

74

14

54

95

35

76

16

56

97

37

78

18

58

99

39

71

01

10

51

09

11

31

17

12

11

25

12

91

33

13

71

41

14

51

49

15

31

57

16

11

65

Day

s to

Issu

e a

n In

voic

e

Events

University Center - Billing Process

Days to Issue Invoice Target (USL)

Reduce NVA - VSM: Lead Time 245 hrs 44 hrs

Accelerate & Consolidate

• Two Graduate Assistants per Area

Empowerment of GA Staff

• Cross Training

WorkloadBalancing • Track Weekly

Progress

Do, Doing, Done Board

Enhance- Less dispute- More satisfied

customers

Case #2 – Shop Floor Kaizen Event:An Engine Assembly Line


Reduce NVA– Spaghetti Map and Point of Use Storage

Accelerate VA– Added an adaptor to help the operator maintain a better posture to torque the filters and perform the operation 15% faster.

(Photo is not the actual production line)

Consolidate VA– Moving an installation of connector to a different workstation allows combined tasks. Reduced both

VA & NVA time.

Case #3 – Reporting Improvementsthrough RACE Analysis

Define Current State Map

with 7 processes

Measure VA Time >100 hrs Total Lead Time >480 hrs

Analyze CTQ, SIPOC, Fishbone, Pareto, CPM

Improve Future State Map with 5 processes VA Time reduced by 14 hrs

Control Automated standardized process


Improvements Summary Reduce NVA

Quality at source

Accelerate VA Saved 14 hrs

Consolidate VA Combined 3 reports in 1 Combined statement

format with E-bill

Enhance Value Reduced billing errors

and disputes Automated bill format to

meet customer’s needs

Process improvement methods plus Lean RACE Model

to identify more potential opportunities

Lean Daily Management

Value Stream Mapping

Six Sigma’s DMAIC

Deming’s PDCA

A3 + 8 Step


ReduceNVA

ConsolidateVA

AccelerateVA

EnhanceValue

Lean RACE gives 4 directions of potential improvements

Thank you!

Conclusion of Lean RACE Model

A method to identify improvement opportunities in process excellence practices.

Continuous improvement in 4 possible directions.


Reduce NVA

Accelerate VA

Consolidate VA

Enhance Value

Trade-offsValue Stream

A Lean RACE Model for Continuous Improvement in Four...

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