IMD MTM Lean v03 Austrian-Conf

MTM for lean process design and world class performance assessment is a successful strategy to improve productivity and reduce costs

PzM SummitWien, 12 & 13 November 2007

International MTM Directorate

Who we are

Wien, 12 November 2007 G. Caragnano - IMD Executive Director 3

IMD: The Mission and the Goals

IMD is dedicated to achieving global leadership and to creating value for its two major stakeholders:

1. National MTM Associations2. MTM applicators and instructors (companies,

institutions and individuals)

For more information, please visit our web site at http://www.mtm-international.org


IMD active membersWEB or Email addressFoundation dateNational MTM Association

www.cpns.co.yu2004Serbia and Montenegro MTM Association

www.mtmdobrasil.com2004Brazilian MTM Association

www.plmtm.com2004Polish MTM Association

[email protected] MTM Association

www.mtm-vereinigung.at2000Austrian MTM Association

www.mtmitalia.it1998Italian MTM Association

www.asocmtmesp.com1990Spanish MTM Association

www.mtm-association.org.za1975South African MTM Association

www.mtmuk.org1964U.K. MTM Association

[email protected] MTM Association

www.dmtm.com1962German MTM Association

www.mtmfr.com1957French MTM Association

www.swissmtm.com1957Swiss MTM Association

www.mtmnorden.com1955Nordic MTM Association

www.mtm.org1951U.S.A. and Canada MTM Association


IMD Organization

What is MTM

Methods-Time Measurement


MTM?

A system for defining every human motion that is made, or required for realizing any kind of manual task/ job/ process


MTM?

Critical analysis of the MTM elementary motions guides the anlyst to improve the work-method by reducing or eliminatingnon-value motions and motion sequences


MTM assumption - Activities which cannot be quantified....cannot be improved!

Lean Manufacturing assumption (by Taiichi Ohno) - Activities to create and produce a specific product which cannot be identified, analized and linked to each other....cannot be modified, eliminated or improved.

MTM provides the bricks...... ....to design muda-free processes

MTM for Process Design

It is clear how these two assumptions are strictly related to each other. MTM’s scientific approachleads almost automatically to elimination of wasteand improvements in:

• Workplace• Layout• Machinery & Equipment• Ergonomics

With additional positive effects on:

• Work sequences• Operations• Process flow• Operator satisfaction


MTM is complementary to Lean Manufacturing

Recognizing and Eliminating MUDA

Standardizing work/processes

Balancing the work flow

Pointing to method/process improvements

Defining takt time and cycle times

Improving health, safety and satisfaction (ERGONOMICS)

TPM (OEE) and reduction of C-O times

Improve Quality

....


Proprietary data cataloguesProprietary data catalogues

Basic motions

Motion sequencies

Basic operations

Operations

Operation sequence

MTM-1(’40)

MTM-2(’60)

UAS e SAM(’80)

MEK(’80)

MEKData blocks

standard

UAS/SAMData blocks

standard

Mass production

Batch production

Job shop production

6

5

4

3

2

1

Data condensation

level

Function

Official MTM SystemsAnalysis

cost

100

30

10

5

>1

< 30 sec2 min.> 20 min.Tc

(low) (high)Method Level


MTM Data condensation level

R

G

MP

RL

reach

grasp

moveposition

release R + G + RL

M + P

get

put

Get + Place

Level 1 Level 2 Level 3

MTM-1 MTM-2 UAS

Performance 100% 100% 100%

Process deviations


The advantages of this scientific approach are numerous:

• We can determine (plan) method and time for manual operations from the product design phase• Focus is set on the designing and improving the work method from an early stage• Work method description is the basis for ergonomic evaluation of workplaces• Operator performance rating is not required• MTM is based on an internationally recognised performance level• Focusing on method and work description from early stages means better training for operators• It focuses on preventing rather than reacting

One ideal MTM system for each production system

Batch production Single part prod.Serial prod.Mass production

UAS / SAM MEKMTM-2MTM-1

MTM techniques tailored to the needs of specific company functions

Operational Logistics

MTM-Logistics

Office work

MTM-MOS



UAS Analysis EAWS CEN + ISO ergon. norms

Green

Yellow

Red

Low risk - recommended;No action is necessary

Possible risk - not recommended;Redesign, if possible, or take actionsto control the risk

High risk - to be avoided;action to lower the risk is necessary

Link between MTM and Ergonomy


MTM: Examples

f SX TMU DX f f SX TMU DX f f CODE TMU f CODE TMU f CODE TMUReach 2 screws (jumbled) to 60 cm R60C 22,3 R60C GC80 32,0 GS80 25 AF3 80 AB3 90Grasp screws G4B 9,1 14,0 GC5 GS10 10 AF1 40 AB3 90

9,1 G4BMove to threaded holes (55 cm) M55C 23,5 M-B PC80 41,0 PP80 40Position P2SE 16,2 PP10 25

11,4 ET 30/40 7,0 E

4,5 M4C 21,0 PC516,2 P2SE

Search for thread 2 M2B 4,0 M2B 2 2 PA5 6,0 PA5 2First fastening motion M4B 4,0 M4B PA5 3,0 PA5Motion cycle 5 RL1 10,0 RL1 5 5 GB5 35,0 GB5 5 6 SA15 90 6 ZB1 60 6 ZA 60(5 hand motions) 5 R4A 17,0 R4A 5 5 PA5 15,0 PA5 5

5 G1A 10,0 G1A 55 M4B 20,0 M4B 5

RL1 2,0 RL1Reach screwdriver to 35 cm 14,2 R35B 18,0 GB45 GS45 20 HC2 70 HB3 100

2,0 G1AMove to first screw (35 cm) 16,8 M35C 36,0 PC45 PP45 35Position 19,7 P2SSEPT 50,0 PT 50,0 PT PT 50 PT 50 PT 50Move to second screw 16,8 M35C 36,0 PC45 PP45 35 PC2 40 PB3 50

19,7 P2SSE50,0 PT 50,0 PT PT 50 PT 50 PT 50

Screwdriver aside 6,8 M10B 6,0 PA15 PD10 102,0 RL1

TMU 377,3 370 390 390 490SEC 13,58 13,32 14,04 14,04 17,64

MEKDescription MTM-1 MTM-2 SAM UAS

MTM to control and improvedirect labor productivity

Efficiency and Productivity


Productivity =

Output all goods and services produced by an organization

Input all resources entering the process

OUTPUT

INPUT

Productivity


How Operation Time is Made UpTo

tal t

ime

of o

pera

tion

unde

r exi

stin

g co

nditi

ons

Tota

l Wor

k C

onte

nt

Basic work content of product and/or operation(practically the same for similar companies)

Work content added by defects in design or product specification

Work content added by inefficient methods of manufacturing

Non Active Time due to shortcomings of the management(e.g. line balancing, organization, wrong standards)

Ineffective time within the control of the operator

Tota

l ine

ffect

ive

time


Productivity

Method Performance Utilizationx x

M P Ux x

Method has the biggest potential

Influence Factors of Productivity


Method has the greatest potential

20 – 30 %Delays normalConnections

“No” delaysTo city centre

DisturbancesTo city centre

Utilisation

20 – 30 %40 – 70 min2 – 4 h9 – 11 hPerformance

300 %50 min3 h10 hMethod

Potential


Method is the factor of influence that encloses the greatestpotential of improvement.

2 areas of Method:

Hardware: processes, machines, tools, layout, etc.Software: organization, sequence, balancing, etc.

Productivity - Method


Performance can be referred to:

Worker performances, which depend on: Training levelSkill Motivation

Machines performances, which can be improved by:MaintananceProper use

Productivity - Performance


It’s the percentage of scheduled time dedicated to value added activities.Utilization embodies:

Technical lossesOrganizational losses

Balancing a manufacturing line can have great influence on its Utilization as losses occur.

Static losses: due to a different work content among workplaces;Dynamic losses: due to time variations, material quality, daily work, etc.

(Planned and effective)

Productivity - Utilization


Method Performance Utilizationx x

M P Ux x

Influence Factors of Productivity

Efficiency

Productivity


Between time “O” and time “1” there are cycle time variations, but the same number of workpieces are produced in the same time

efficiency changes, productivity doesn’tBetween time “1” and time “2” cycle times do not change, but more

workpieces are produced in the same time so, efficiency changes as well as productivity (production increases)Comparing time “2” to time “0”, Efficiency turns to be decreased and

Productivity improved. Productivity at time “2” represents the Efficiency that I would have had at time “2” if the cycle times had not been changed.

ExampleExample

Relations between Efficiency and Productivity

Time Pcs. Cycle-time (h/pcs)

availablehours

Efficiency M factor Productivity

zero 9 1 10 90% 100% 90%one 9 0,8 10 72% 125% 90%two 10 0,8 10 80% 125% 100%


Calculate total productivity increase and factorization

MM: Cycle-time 0.8 0.5………………………..

PP: Performance 0,9 1.05………………………

UU: Utilization 0.6 0.85……………………

TOTAL INCREASE TOTAL INCREASE OF PRODUCTIVITYOF PRODUCTIVITY………………………………………………………………........

Productivity


Calculation of productivity improvement

Before AfterM: 0,8 0,5 8 : 0,8 = 10 pcs 8 : 0,5 = 16 pcs (+60%)

P: 100 115 10 x 1,0 = 10 pcs 16 x 1,15 = 18,4 pcs (+15%)

U: 60 85 0,6 x 10 = 6 pcs 0,85 x 18,4 = 15,6 pcs (+42%)

Total productivity improvement = 15,6 : 6 = 2,61 = + 161 %(1,60 x 1,15 x 1,42 = 2,61)


Productivity improvement processes

MethodMethod

- product design

- product range rationalization - production systems- layout- workplace design- systems and procedures- material flow

PerformancePerformance

- skills and training- motivation- work instruction and coaching- target orientation- engineered labor standards

UtilizationUtilizationHuman resources- static balancing- dynamic balancing- qualityEquipment- productive maintenance- change over efficiency

MTMMTM

Process improvement Efficiency Improvement


Secure (PP x UU)

Create / Buy (MM)



Innovation (3:rd level)

Method improvement (2:nd level)

Elimination of waste (1:st level)

Improvement level

Time

Focus on level 2 - method improvement- might lead to level 3 - Innovation


1° level: Elimination of waste

Low cost and quick to implement.Often based on operators experience.Limited effect on the method.Creates involvement by employees.The ideas often comes from quality circles or

similar activities.


2nd° level: Method Improvement

Implementation takes some time and requests capital.Often a good relations betweens cost and

effect.Functional solutions (”others has already done

similar improvements”).A new method is built by analyse from base

functions to auxiliary functions.


3° level: Innovation

Completely new idea or technology.The idea often comes from another business or ”world”.Often demands capital and needs long time to develop and test.Creates a new plat form to continued development.


1

2

3

45

6

7 Structuring• Objets & modules• Work contents

Classification• BF & AF• IN -> -> OUT

Set Kaizenshiro• Calculate ICT• Kaizenshiro

Seek ideas• Define subject• Brainstorming• Classify & evaluate

Build new method• Inside - out• Critical Path Analysis• Alternative solutions

Implementation• Management system • Follow-up

Results• Operational • Financial

Productivity = MM x P x U

Productivity improvement processMethod Design Concept (MDCMDC)


MDC – Design new method

Traditional process rationalization

Outside-in Inside-out

New way: focus on value (BF)

BF: Basic Functions; AF: Auxiliary Functions

Workcontent



Methods-TimesMeasurement (MTM) is a procedurewhich analyzes any manual operation or method into the basic motionsrequired to perform it and assigns to each motion a predetermined time standard, which is determined by the nature of the motion and the conditionsunder which it is made. Thanks to MTM, once the working method is designed, time is determined, for free!

Manual operation

Basic Motions

Influence Factors

Basic Time


AS IS PROCESS

LINER PALLET

CUT

WELD

PREP

LINE

Example: liner preparation

LINER PALLET

CUTWELDPREP

LINE

TO BE PROCESS


AS IS 63.6 HM

TO BE 40.1 HM (+59% Productivity)


PROFITABILITY CALCULATION

Merge cut, welding and preparation to reduce handling of liner

Example: liner preparation

TIME VOL LAB COST PROD.TYAS IS 63,6 120.550 255.567 100%TO BE 40,1 120.550 161.135 159%DELTA -23,5 0- 94.432- 59%LABOR RATE 20 (€/H)TOT INVESTMENT 50.000 (€)PAY BACK TIME 0,5- (YRS)


MDC – Results

Improvement

Investment

20%

A B C

Kaizenshiro

Innovations

Improvement

Waste elimination


Secure (PP x UU)

Create / Buy (MM)



MDC – Implementation

Target

Time

Cycle time

Reward


Why monitoring Efficiency ?

To be or not to be

PlanPlan ExecutionExecution• Improvement: ..........................One method One activity

• Process: ..........................One time Distribution of times

• Conditions: ..........................Predeterm. Variable (materials, performance, quality)


Measuring

Comparing to standards

Discovering problems

Improvementactions

Goals

Active Monitoring to improve Efficiency


Active Monitoring Scope

MTM_CURR

REST TIME

BALANCING

QUALITY

WORKERPERFORMANCE

REPORTED LOSSES

REWORK LOSSES

COORDINATION COSTSSystem time

Transformation time

Gross Production time

Net Production time

Standard Cost TotStandard Cost OK

Std WkContentBasic WkContent

Efficiency Improvement


ACTIONS

RESULTS

RESULTS

RESULTS

CAP enhances results

Active Monitoring (CAP) to improve efficiency

Ideas(100-700)

Relevant(50-200)

Justifiable(30-100)

Solutions

Method improvement


CAP – Orientation to continuous improvement

Goals gradually more difficult to reach have to be set. They have to be achievable in a reasonable time (3-6 months) in order to create motivation and commitment.

02

03

04

X1

X2

X3

X4


Example of CAP Process

1

2

3+4+5

NReference to

document nr.

Shiftmanager

+Managingdirection

Sche

dulin

gSh

iftm

anag

er

Operatore

Team

Preparation ofthe production

planning

Productionplanning

+Productiontag

Assign productionorders to the team’s spokesman

Critical productionanalysis record

Weekly Efficiencymeeting

Compileproductionreports

Material load + production

Set – up schedulingMaterial availability in department(mag. 19)

Data recording of the previous day production

DBEfficiency

2 times/week Activity MeetingLosses analysisImprovement proposals

Monthly efficiencymeeting

List of autonomous,Corrective + List of requests ofsupport for suggested actions actions

List of actions to be implementedwith the manager’s supervisionand filed with deadline

+Support requests for Suggested actions

List of actions to be implemented withthe manager’s supervision and filed with deadline and advancementstatus

Print previous’week productionreports

Gather and controlproduction reports

START

Print previous’4 weeks productionreports

List of actions to be implementedwith the manager’s supervisionand filed with deadline

+Support requests for Suggested actions

List of actions to be implemented withthe manager’s supervision and filed with deadline and advancementstatus

IMD MTM Lean v03 Austrian-Conf

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