Work Measurement and Lean

Applications in the Process IndustriesReduce Cost and Improve Flow

Copyright 2009

Luis Armendariz, P.E.,MBA,Six Sigma EngineerLean Physics and Operations Modeling Consultant

Agenda

• Contributors & Origins of Work Measurement

• Global Economy and Work Measurement

• What’s Work ? Lean Principles

• Work Measurement Tools

• Work Measurement Case Studies/Applications • Work Measurement Case Studies/Applications

Traditional and Non-Traditional

• Improvement Challenges & Survey Results

2Copyright 2009

Contributors and Origins of Work

Measurement

The Mayas in Mesoamerican Civilization

ProtimeSystems.com

W= F d F = m a

Issac Newton1643-1727

Long Time CountEstimated Current and Historical Dates

2600 B.C.

Lilian and Frank Gilbreth 1931Lilian 1878-1972

Fredreric Taylor 1856-1915

Henry Ford1863-1947

Greece and EgyptHour Glass

Predetermine Time System (PTS)1910

USA-Sweden-Germany1940

PTS…. And OthersWorkfactor, MOST, Modaps

ProtimeSystems.com

Computer Video-Based Work Measurement

and Video & Pictorial Instruction Systems

1996

Taiichi Ohno1912-1990

3Copyright 2009

Current Economic Issues and WMGDP Global Level

Country Level

Product demand unstable (high variability) creating waste of resources

•State of CA job growth fell 5.0% in July 2009 from a year ago; national job growth fell 4.2%. •State CA unemployment averaged 11.9% in July 2009; the national average was 9.4% •Personal income fell 0.2% to $1.5 trillion in Q1 2009 from a year ago. •Tax revenue fell 16.2% in Q1 2009 from the previous year. •Exports fell 22.4% to $48.8 billion in the first five months of 2009 from a year ago. •Venture capital investment in CA fell 63% to $1.4 billion in Q1 2009 from a year ago.

State Level

4Copyright 2009

What is Work & Lean Principles

Any activity that consumes resources and creates value or non-value added for the customer

What is Work ?

Work Measurement

MPI

5Copyright 2009

What is Work Measurement ?

What is Work Measurement?

Is the application of techniques designed to establish the time for a qualified worker/process

to carry out a task at a defined speed

Work Method

Work

Process

Study

Work Method

To simplify the job and

develop more economical

methods of doing it

(eliminate waste)

Work Measurement

To determine how long it

should take to carry out

Work

Instruction

6Copyright 2009

Work Measurement Methodology

1-Select

2-Record

3-Examine

Work to be studied

Relevant data, work elements

Work element breakdown and effective method

4-Measure

5-Define

7-Install

8-Maintain

Work in each element (time), VA and NVA

6-Compile Work Allowances and determine standard time

Work Method (Why, What, Where, When, Who and How)

Std. work instruction training and visual instructions

Workflow balance and standard work audit

7Copyright 2009

Work Measurement Applications

• Value Stream/Process Flow Mapping • Capacity and Lead Time Analysis • Production Plan/Production Standards• Scheduling• Labor/Staffing Analysis/Labor Standards• Production Incentives• Machine Efficiencies (OEE)

The Work Flows of :• Material• People• Machine• Machine Efficiencies (OEE)

• Costing• Product Design• Layout Planning• Ergonomics• Inventory Planning/ERP• Information Systems• Simulation Modeling• Flow Manufacturing & Service• Learning Curves and Training• Productivity/Efficiency & Effectiveness

TIME

• Machine• Information• Service• Layout• Cash• Environment

8Copyright 2009

Work Measurement Techniques

TimeDirect

Observation

Video

SamplingSampling

Historical

Predetermined

MTM

Most

Stopwatch

/PDA

Sampling

Sampling

Production Records

Computer

Online/LAN

MRP/ERP Transaction

Std. Data

Simulation

Modeling

9Copyright 2009

Work Measurement Approach

Engineer Based Standards Team Video Based Standards

1. Engineer Conducts Work Measurement

1. Engineer /Supv. Facilitates Study2. Cross Functional Team Conducts Work

2. Engineer Compiles Standard3. Engineer Develops Std Work

Instruction4. Management Enforces Standard5. Operators Follow Instructions

Measurement (Including Operators)3. Team Develops Std Work Instruction

(Including Operators)4. Management provides training, removes

barriers and motivate operators5. Operators are accountable to sustain6. Operators are motivated to improve

standards7. Engineer/Mgt. installs the control systems

and operating mechanisms

10Copyright 2009

Work Measurement (7 Workflows)

1-Does the Material flow ?Move from one value adding processing step right to the next value adding step

2-Do the Operators flow ?Is the operator’s work repeatable and consistent within each cycle ?Can the operator perform efficiently from one value adding work element to the next ?

3-Do Machines/Equipment/Tools flow ? Are the machines or equipment adding value to the product/service ?to the product/service ?

4-Does Information flow ?Is there a plan and schedule that maximizes flowDoes everyone know the hourly production target ?How quickly are problems and abnormalities noticed?What happens when there are problems and abnormalities ?

5-Does the Service or Mgt Business Support Function flow ?Are the service functions in the company flowing efficiently and supporting mfg. flow

6-Does the Layout (facility) flow ?Are the material, operators, equipment and information flowing efficiently

7-Does the Cash flow ?What is the material idle time (cash in-idle), WIP, TH, CT and inventory turn over 11Copyright 2009

Beyond 5S/Ergonomics-Human FactorsArrangement and

Storage of Tools

Lighting

Color

Noise & Vibration

PFD Allowances

PersonalFatigue Noise & Vibration

Climate & Ventilation

Toxic Substances

PPE

Work Time and Rests

Facilities

FatigueDelays

12Copyright 2009

The 5 Work Symbols and 7 Waste

7 WasteMotion

Any activity that consumes resources and creates value or non-value added for the customer

What is Work ?

VA

5 Work Symbols

Operation

MotionOverproductionWaitingTransportationInventoryUnnecessary ProcessingDefects

“8” Tap into human potential and creativity

NVA

Storage

Delay

Transport

Inspection

13Copyright 2009

Process Flow and The 5 Work SymbolsProcess Flow AnalysisProcess Description: XXXXXX

Date: XX-XX-XX Material People Machine Information

No. Task Description

Cu

m.

Tim

e (

min

)

Inte

rva

l T

ime

(m

in)

Dis

tan

ce (

Ft)

Op

era

tio

n

Tra

nsp

ort

Sto

rag

e

De

lay

Insp

ect

ion

1 Get tube and place to bender 5 5 6 5

2 Get bent tube & place to assy 10 5 1 5

3 Get connector 15 5 5 5

This tool is used to measure service or manufacturing processes, collecting information using sticky notes to build the VSM

3 Get connector 15 5 5 5

4 Get hose & place 20 4 3 4

5 Start assembly cycle 24 5 0 5

6 Walk and bring finished piece 29 7 6 7

7 Attach to convolute 36 4 0 4

8 Start assembly cycle 40 6 0 6

9 Place to tester fixture 46 6 3 6

10 inspect part 52 5 0 5

11 Attach to Coiler 57 5 0 5

Total 57 24 20 32 0 0 5

Steps Count 12 5 6 1

Work Flow Cycle Efficiency 35%

Total

Steps Count

Work Flow Cycle Efficiency

Cu

rre

nt

Pro

po

sed

14Copyright 2009

Work Measurement (Material)

at VSM Level

A B C

2d 4d 1d1d

Supplier

Customer

Min TAKT

CT= 400 m

C/O= 160 m

TBF = 4 D

TTR = 2 H

Yield = 92%

HCT = 8 FT

EPEI = 4

VA = 300 m VA = 200 m VA = 300 m

Work Cycle Efficiency =(WCE)

VA/(VA+NVA)

= 300+200+300(800+12000)

WCE= 6.3%CT= 213 H

WIP = 20TH = 4

Min

A B C

15Copyright 2009

Work Measurement (Labor Unrestricted)

Assy1

Constant Work Elements Time 1- Pick up part 32- Move to table 23- Assemble housing 104- Inspect assembly 7 5- Move part to bin 2 S/E- Starts and End in container1

23 4

5Assy1

Current State

CT= 30 S

C/O= 0 m

TBF = 0 D

TTR = 0 H

Yield = 92%

HCT = 1 FT

VA = 10 S

IndicatorsWCE= 33%

CT= 30 S TH = 120/hrWIP=110

S E

Observed Time = Constant + Variable Work ElementsObserved Time = (3 + 2+10+7+2 ) + (60/100)Observed Time = 24+ 0.6 = 24.6 Sec

Variable Work Elements Time - Re-fill container f=100 60

Normal Time = Total Observed Time x EfficiencyNormal Time = 24.6 x 1.05 = 25.83 Sec

Standard Time = Total Normal Time x PFDStandard Time = 25.83 x 1.15 = 29.7 Sec, ~30 S

16Copyright 2009

Work Measurement (Labor Unrestricted)

Assy1

Constant Work Elements Time 1- Pick up part 22- Move to table 13- Assemble & test housing 124- Inspect assembly 7 5- Move part to bin 2 S/E- Starts and End in container

12 3

Assy1

Future State

CT= 17.3 S

C/O= 0 m

TBF = 0 D

TTR = 0 H

Yield = 92%

HCT = 1 FT

VA = 12 S

IndicatorsCurrent (Future)

WCE= 33% (70%)CT= 30 S (17 S)TH = 120/hr (208/hr)WIP=110 (3)

Observed Time = Constant + Variable Work ElementsObserved Time = (2+ 1+12 ) + 0Observed Time = 15 Sec

Variable Work Elements Time - Re-fill container f=100 60

Normal Time = Total Observed Time x Eff. RatingNormal Time = 15 x 1.05 = 15.75 Sec

Standard Time = Total Normal Time x PFDStandard Time = 15.75 x 1.10 = 17.3 Sec

17Copyright 2009

Work Measurement (Labor Restricted)

Operator and Machine

A

Restricted WorkIs work in which the output is limited by factors

outside the control of the worker

Operator Working Operator Idle

Current

1.2 min

2.0 min

CT= 1.36 m

C/O= 1 m

TBF = 4 D

TTR = 2 H

Yield = 92%

HCT = 8 FT

VA = 0.8 m

Machine Idle Machine Working

Current

Future

0.8 min

Operator Working Operator Idle

Machine Idle Machine Working

1.12 min

0.8 min

1.36 min

18Copyright 2009

Work Measurement (Labor Restricted)

Operator and Machine «Pump Diagram»

A Machine Process Time 0.8 min

1.36 min

Operator Time

CT= 1.36 m

C/O= 1 m

TBF = 4 D

TTR = 2 H

Yield = 92%

HCT = 8 FT

VA = 0.8 m

Internal Time 0.56 min External 0.56 min Idle 0.24 min

Status

• Idle Time

• Working Time

• Total Cycle

• Utilization

Operator

• 0.24 min

• 1.12 min

• 1.36 min

• 82% (1.12/1.36)

Machine

• 0.56 min

• 0.80 min

• 1.36 min

• 59% (0.8/1.36)

Summary

19Copyright 2009

Work Measurement (Setup Time)

Operators and Machine « Pump Diagram »

ObservedCT = 648 Min

Prep (11min) External

Run TimeSetup

Extract(70min)

Rinse I (50min)

Rinse II (60min)

Remove Gasket (80min)

Install Gasket (145 min)

Clean Gasket (30 min)

MC Breakdown (200 min)

Internal-Reduce

Int-Reduce

Int-ReduceEliminate

Int-Reduce

Int-Reduce

Int-Combine

20Copyright 2009

Work Measurement (Setup Time)

Operators and Machine « Pump Diagram »

Observed = 648 min Reduced = 232 min

Capacity Gain = 416 min

Eliminate

ReduceReduceReduce

ReduceReduceCombine

External

21Copyright 2009

Work Measurement (Single Machine )

« OEE »

Availability (Downtime Loss) = Operating Time / Planned Production Time

Performance (Speed Loss) = Ideal Cycle Time / (Operating Time / Total Pieces)

OEE = Availability x Performance x Quality

Performance (Speed Loss) = Ideal Cycle Time / (Operating Time / Total Pieces)

Quality (Quality Loss) = Good Pieces / Total Pieces

OEE Factor Shift 1 Shift 2

Availability 90% 95%

Performance 95% 95%

Quality 99.5% 96%

OEE 85.1% 86.6%

Note: Availability (TBF and TTR)22Copyright 2009

Work Measurement (Multiple Machine)

« Waterfall Diagram »

A

Multiple Machine and Operator WorkIs work which requires the worker/team to attend two

or more machines/equipment

Machine

A

CTq1

CT= 1.36 m

C/O= 1 m

TBF = 4 D

TTR = 2 H

Yield = 92%

HCT = 8 FT

VA = 0.8 m

A

B

C

CTq2

CT= SetupTime + Process Run Time + Ctq

23Copyright 2009

Work Measurement (People Flow)

« Spaghetti Diagram »Process Layout: 6 People -Crew

3 Op to unload printing frames

30 ft

printing framesand remove gaskets

3 Op to change inksand spray pins

50 ft

24Copyright 2009

Work Measurement (People Flow)

1 9

10

1 2

3Incoming

Outgoing

ProcessSequence

WorkSequence

Operator A1

2

3

4

5

9

8

7

6

1

1

2

1

2

4

3

3

2

Operator B

Operator C

25Copyright 2009

Work Measurement

(Material-Facility Flow)

26Copyright 2009

Work Measurement

(Material-Facility Flow)

27Copyright 2009

Work Measurement PTS

Predetermined Time StandardsPTS

Are pre-established times for basic human motions and are used to build up the time for a job at a

defined level of performance

Studs

Base assembly workplace layout

Studs

18”

12”

8” 8” 8”

12”

28Copyright 2009

Work Measurement

Work SamplingWS

Is a method of finding the % of occurrence of a certain activity by statistical sampling and random observations

n

pqp =∂

Sample SizeObservations

Machine WorkingMachine Idle

Preliminary Study100 observationsP = 25 % machine idleq = 75% working

95% conf level 10% error

1096.1 =∂× p

n

75255

×=

n = 75 observations

Machine Working

Waiting for Repairs Waiting for SuppliesPersonal needs of

workers

Idle

Numb er of Observations: 75 Total %

Machine Running

11111 11111 11111 11111 11111 11111 11111 11111 11111

11111 11111 11111 11 62 82.7%

Machine Idle Repairs 11 2 2.7%

Supplies 111111 6 8.0%

Personal 1 1 1.3%

Idle 1111 4 5.3%

100%

29Copyright 2009

Work Measurement

Service /Business Function

Time To Fill Vacancies(Intellectual Capital Losses)

Lost Hours of Productive Hourly EmployeesLost Hours of Productive Salary EmployeesLost Hours of Productive Executive Employees

A

Lost Hours of Productive Executive Employees

CT= 1.36 m

C/O= 1 m

TBF = 4 D

TTR = 2 H

Yield = 92%

HCT = 8 FT

VA = 0.8 m

Time To Process Purchase Orders

Time To Generate Financial Reports

Time and Resources To Service Machinery and Equipment

Time and Resources To Execute a Project

Time To Train New Employees

30Copyright 2009

Distributing the Work Load

Line Balancing

a. Reduce NVA time to improve work balancea. Reduce NVA time to improve work balance

b. Reduce product cost by removing work time from productb. Reduce product cost by removing work time from product

c. Cycle Time and WIP will be reducedc. Cycle Time and WIP will be reduced

d. Productivity will increase due to more time for VA tasksd. Productivity will increase due to more time for VA tasks

6

8

10

12

14

16

0

2

4

Step 1 Step 2 Step 3 Step 4 Step 5

TaktTaktTimeTime

NVAT

VAT

Set-up

min

d. Productivity will increase due to more time for VA tasksd. Productivity will increase due to more time for VA tasks

31Copyright 2009

Work Measurement (Information Flow)

Does everyone know the target and the method ?

Video Instruction

Text Instruction

WIP

CTInformation Board

TH

Text Instruction

Align plate on table

32Copyright 2009

Achieving Standard WorkRoutine for work to be performed right the first time, every time

Elements of Standard Work

1- Takt (Demand Rate)

Min

A B C

TAKT

WIP = CT x TH

2- Standard WIP

3- Work sequence (Work Instruction,

Documentation & Training)

33Copyright 2009

Sustaining and Improving

Standardization Drives Sustainable Results

KS

TIME

IMP

RO

VE

ME

NT

KK

K

K

K

K

K

KS

S

SS

K-

S-

Kaizen event

Sustained performance

34Copyright 2009

Q&A

Cannot manage if you don’t measure !Contact IIE Membership

Luis Armendariz, P.E.

35Copyright 2009