Development of Lean Enterprise Simulation Tools

Transcription

1 Development of Lean Enterprise Simulation Tools NSRP Program Dr. Alok K. Verma P.E., CMfgE Ray Ferrari Professor & Principle Investigator Old Dominion University William McHenry Lean Training Coordinator Northrop Grumman Newport News 1

2 Topics Project Overview Supply Chain Integration Design Processes Scheduling Ship Repair Value Stream Mapping Simulation Kits Cost and Availability Train-the-Trainer Program - Cost 2

3 Lean Enterprise Simulation Project - Overview Development of simulation tools, associated training programs & kits for ship building industry Duration 16 Months 9/03 12/04 Phase- 0 Completed Lead Inst. ODU Shipyard NGNN Phase- I Completed STASR Participating Organization 3

4 Five Areas of Need Identified by Industry Design Process Ship Repair Process Supply Chain Integration Value Stream Management Scheduling 4

5 Project Scope Design and develop simulation activities in five areas to complement existing Lean training programs. Identified five areas of critical need. Develop associated training programs. Develop simulation kits. Disseminate the results. Develop and deploy a web site. 5

6 Benchmarking Simulation Activity All five areas Phase - I Traditional Manufacturing Collect data and compare Large Batch, Push System Phase - II Implement LEAN Tools and Compare Performance Metrics Phase - III Implement LEAN Tools and Compare Performance Metrics Collect data and compare Collect data and compare Lean Enterprise 6

7 LEAN ENTERPRISE SIMULATION AREAS 7

8 Supply Chain ISSUES IN SUPPLY CHAIN # ISSUES LEAN TOOLS 1 Scheduling Problem Pull, Integrate Planning & Sourcing with suppliers, information sharing 2 Adversarial relationship with supplier Team - Sharing information, long-term commitment, communication 3 No involvement of supplier in design. Co-location 4 Long lead-time Pull, Group technology 5 High costs Batch size reduction. 6 Inventory very high POUS, Pull, 5S, Batch reduction, TPM 7 Challenge in synchronizing flow with Pull, Kanban, Takt time. suppliers. 8 Vendors furnishing information late Map information flow, (reduce paperwork, improve scheduling) 9 Irregular performance Built in quality, mistake proofing. 10 Higher price to US shipyards Co-designing, sharing information, long-term commitment 11 Shrinking choice of vendors Vendor development 12 Many engineering changes Concurrent Engineering, Co- location. 8

9 Supply Chain SUBMARINE MODEL 9

10 Supply Chain SUPPLY CHAIN SIMULATION OVERVIEW The simulation is done in 3 phases The first phase simulates the traditional supply chain process Partial Lean implementation in shipyard in first phase Lean tools are implemented through 2 nd and 3 rd phase Impact of Lean implementation is studied through performance metrics This simulation includes 2 primary suppliers and 2 secondary suppliers A variability wheel is used to inject random variations in the simulation 10

11 Supply Chain ROOM LAYOUT- PHASE - I Shipyard 11

12 Supply Chain PERFORMANCE METRICS-PILOT 16 th JULY Lead-time reduces as we go from phase-1 to phase-3 There is a 30% reduction in overall lead time. Number of quality checks decrease from 25 in phase- 1 to 2 in phase-3. Space utilized by warehouses decreases. Cycle time decreases. 12

13 Supply Chain KEY BENEFITS DEMONSTRATED DURING PILOT SESSIONS Reduction in Lead time from phase-1 to phase-3. Decrease in number of quality checks and cost of quality checks. Reduction in space utilized by warehouses. On-time delivery in phase -3. Decrease in cycle times due to improved communication. 13

14 Design Processes 14

15 Design Process ISSUES Lack of Communication Over the Wall Lack of Standardization Design for Maintenance Lead Time Batch Flow Lack of Line Balancing Functional Processing Issues in Design Process Unnecessary Review/ Duplicate Review LEAN TOOLS Communication, IPPD, CAD/CAM System, Colocation TQM, Quality at Source Concurrent Engineering /IPPD DFM DFM Group Technology Single Piece Flow Takt time, GT Cellular 15

16 Design Process Role of Various Departments 16

17 Design Process Room Layout for Phase I Phase 1 demonstrates the traditional design process There will be confusion and chaos due to lack of communication, no visual signals, no accountability and no pull system. 17

18 Design Process Room Layout for Phase III Integrated Product & Process Design Communication, Co-location Integrated Product and Process Design (IPPD) Concurrent Engineering Single Piece Flow 18

19 Design Process Performance Metrics from NGNN Pilots PERFORMANCE CRITERIA Phase I Phase II Phase III Total # of Employees Lead Time (to complete one order) Cycle Time Customer Order Conceptual Design ERP System Preliminary Design 14 9 Drafting Detailed Design 6 4 Analysis Supervisor Number of Reviews Trips made by the Transporter Paper Work- # of files forwarded to next Dept. 5 2 ERP Concurrent Operations 19

20 Design Process Performance Metrics for Preliminary Design Department Cycle Time Round 1 Round 2 Round 3 Preliminary Design #1 Preliminary Design # ERP System Preliminary Design #3 Preliminary Design # Concurrent Operations Cycle Tim e for Prelim inary Design Departm ent Cycle Time PD #1 PD #2 PD #3 PD #4 Phases 20

21 Design Process Key Benefits Demonstrated During Pilot Sessions The lead time dropped from 35 minutes in phase-i to 24 minutes in Phase II and to 10 minutes in Phase III. Total simulation time also went down for all phases due to refinement. Fewer errors due to clarifications and changes in instructions. Introduction of WIP in Analysis Department reduced the idle time during the beginning of simulation. Introduction of the third order kept Conceptual Design Department and Preliminary Design Department busy till the end of simulation. 21

22 Scheduling 22

23 Components of Model used in Simulation MODULE 1 MODULE 3 AC-UNIT MODULE 4 MODULE 2 WATER TANK FUEL TANK PROPELLER SHAFT ENGINE Scheduling 23

24 Scheduling Issues Lack of Communication Artificial variability, machine breakdown Material planning and capacity planning Sequential scheduling Demand variation Workload Distribution Priority Management Disruptions in schedule Issues in Scheduling Cross Functional Teams, Co-location. Time buffer, TPM. Cross functional teams. Spatial scheduling Supermarket Lean Tools Line balancing, takt time Cradle to grave approach, Cross functional teams Dynamic scheduling, Time buffer, Communication between suppliers and schedulers 24

25 Scheduling Room Layout for Phase 1 Room Layout : Traditional (phase I) Variability wheel Planning Department Material flow Transfer of forms Purchasing Department Production Department Dry dock Water front Services(Crane) Quality control Quality control Quality control Supplier A Supplier B Warehouse Department WS1 WS2 WS3 Phase 1 demonstrates the following problems - Lack of communication Demand variability, Capacity planning, Resource planning Spatial management, Priority management 25

26 Scheduling Results of pilots (NGNN-Pilot 2) PERFORMANCE ANALYSIS Phase I Phase II Phase III crane utilization drydock cycle time cycle time at planning dept cycle time at production dept cycle time at purchasing dept cycle time at WS cycle time at WS cycle time at WS Inventory holding cost of AC Unit(50$/min) Inventory holding cost of Heat Exchanger (50$/min) Inventory holding cost of Water tank (50$/min) Inventory holding cost of Fuel tank (30$/min) Inventory holding cost of Engine (50$/min) Inventory holding Cost of propeller shaft ( 20$/min) Inventory holding cost of propeller ( 20$/min) TOTAL HOLDING COST OF ITEMS $ $ $ cycle time at warehouse Total lead time Drydock cost($100/min) $1, $ $ Work Stations Cost($25/min) $90.00 $ $ Crane Cost($50/min) $ $75.00 $70.00 Warehouse Cost($50/min) $ $ $ TOTAL COST $2, $1, $ As we implemented pull scheduling in pilot 2, there is a reduction in inventory hold cost for parts at warehouse. Cycle time at workstation 2 is reduced by 30 % in phase 3 as compared to phase 2 after we implement dynamic scheduling. 26

27 Scheduling Results of pilots (NGNN-2) Drydock cycle time Drydock Cycle time Cycle time decreases due to implementation of dynamic scheduling. Simulation Phase Number Crane Utilisation CT at WS CT at WS Simulation Phase Number Simulation Phase Number 27

28 Key Benefits Demonstrated During Pilot Sessions Reduction in the total cost for building in phase 2 and 3 compared to phase 1 as we implement lean principles in phase 2 and 3. Reduction in inventory holding cost of warehouse as we implement pull scheduling in phase 2 and 3. Reduction of cycle time of dry-dock in phase 2 and 3 as we implement spatial scheduling and 5s. Cycle time of workstation 2 reduces as we implement line balancing at workstations. Sub assemblies are done at workstations as part of dynamic scheduling which reduces the cycle time of dry-dock. 28

29 Ship Repair Process 29

30 Ship Repair Issues In Ship Repair No Important Issues Emergent Repair Job Sequencing/ Pacing Multiple Source Planning Resource Setup and Changeover Excessive part / people travel Unrealistic Planning Space Management Lack of Capacity Management Lean Tools Cradle to grave approach, Use of historical data Pull, TAKT time, Multiple skills Communication Setup reduction Cellular layout Cradle to grave approach, Use of historical data 5S, POUS Capacity Management 30

31 Ship Repair Ship Model 31

32 Ship Repair Example of Repair Jobs Blasting of Ship Painting of Ship 32

33 Ship Repair Room Layout - Phase - I Material Information Planning Warehouse Machinery Production Hull Dry Dock Inspection Waterfront Services 33

34 Ship Repair Task Phase - 1 Phase - 2 Phase - 3 Start Time for Replacement of Deckplate # 1 of ship Finish Time for Replacement of Deckplate # 1 of ship Start Time for Replacement of Deckplate # 3 of ship Finish Time for Replacement of Deckplate # 3 of ship Start Time for Replacement of Deckplate # 1 of ship Finish Time for Replacement of Deckplate # 1 of ship Start Time for Engine Overhaul Finish Time for Engine Overhaul Start Time for Painting and Blasting Finish Time for Painting and Blasting Start Time for Shaft Straightening Finish Time for Shaft Straightening Start Time for cutting Plate # 1 of ship Finish Time for cutting Plate # 1 of ship Start Time for cutting Plate # 3 of ship Finish Time for cutting Plate # 3 of ship Start Time for cutting Plate # 1 of ship Finish Time for cutting Plate # 1 of ship Number of Modules on which repainting was done Painting Cost for one module Lead Time Cycle Tme for Replacement of Deckplate # 1 of ship Cycle Tme for Replacement of Deckplate # 3 of ship Cycle Tme for Replacement of Deckplate # 1 of ship Cycle Tme for Engine Overhaul Cycle Time for Painting and Blasting Cycle Tme for Shaft Straightening Cycle Tme for cutting Plate # 1 of Ship Cycle Tme for cutting Plate # 3 of Ship Cycle Tme for cutting Plate # 1 of Ship Total Distance Travelled by Waterfront Services Repainting Cost Performance Metrics - Pilot 2 nd August Lead Time Repainting Cost Lead Time Phase Number Repainting Cost Phase Number Lead Time Repainting Cost 34

35 Ship Repair Key Benefits Demonstrated During Pilot Sessions Reduction in Lead time from phase-1 to phase-3. Decrease in repainting cost (Rework). On-time completion of repair job. Decrease in cycle times due to improved communication and flow. 35

36 Value Stream Mapping 36

37 VSM Overview of Value Stream Mapping Simulation Observe the production of the police patrol boat (using traditional approach) and collect cycle time data. Develop the current state map by examining the flow. Development of future state map from the current state map using lean tools and techniques. Examine the prediction for future state using a computer based simulation model. Implement the future state and compare performance metrics. 37

38 VSM The Lego Boat and Sub Assemblies 38

39 VSM Issues in Value Stream Mapping Issues Overproduction Bottlenecks Transport Batch flow/inventory Layout Defects Long lead time Information flow Functional layout Lean Tools Pull/Kanban Takt time/line balancing Co-location, supermarket Supermarket Cellular Manufacturing Quality at source Pull/Single piece flow Pull Cellular Layout 39

40 VSM The division of participants into teams 40

41 VSM Room Layout for Phase 1 41

42 VSM Results from the Pilot Session -2 The results differ from session-1, since the times were calculated based on the red-star boat. The total cycle time increases from the first phase by 2 mins. but the productivity is higher. The productivity went up by 66% in the second phase. 42

43 VSM Summary of the Results for the Pilots The summary of the results: 1. Additional performance metrics were included as a result of the pilots. 2. The number of boats made in the simulation and the number of boats made per minute were included as performance metrics. 3. The collection of data for the red-star boat helped in identifying cycle time for one boat. 4. Simplification of the processes and forms has resulted in reduced simulation time. 5. The drawing of current state map and future state map are made easier and less complicated by a step by step example. 43

44 DESIGN PROCESS SIMULATION KIT Developed under NSRP Program. ATI Agreement # by Old Dominion University, Northrop Grumman Newport News and Virginia Ship Repair Association Inc. ESTIMATED DELIVERY: 3-4 WEEKS DESIGN PROCESS KIT Cost of the kit: $ 1, LIST OF ITEMS IN THE KIT Training presentation Instructor s Guide Simulation Guide Calculators Laminated instructions and forms Digital clock with remote Easel and Chart Paper Miscellaneous stationary like, rulers, file folders, permanent markers, cutters, masking tapes, etc Kit comes in one large box 44

45 SUPPLY CHAIN SIMULATION KIT Developed under NSRP Program. ATI Agreement # by Old Dominion University, Northrop Grumman Newport News and Virginia Ship Repair Association Inc. ESTIMATED DELIVERY: 6-8 WEEKS SUPPLY CHAIN KIT Cost of the kit: $ 4, LIST OF ITEMS IN THE KIT Training presentation Instructor s Guide Simulation Guide 2 sets of Submarine Models Laminated instructions and forms Digital clock with remote Vernier calipers and rulers Variability wheel Miscellaneous stationary like, scissors, file folders, permanent markers, masking tapes, screw drivers, etc Kit comes in two large boxes 45

46 SHIP REPAIR SIMULATION KIT Developed under NSRP Program. ATI Agreement # by Old Dominion University, Northrop Grumman Newport News and Virginia Ship Repair Association Inc. ESTIMATED DELIVERY: 6-8 WEEKS SHIP REPAIR KIT Cost of the kit: $ 4, LIST OF ITEMS IN THE KIT Training presentation Instructor s Guide Simulation Guide 2 Ship Models Laminated instructions and forms Digital clock with remote Acrylic Dry-dock Electric Screwdriver Miscellaneous stationary like, scissors, file folders, permanent markers, screw drivers, cutters, body paint, brushes etc Kit comes in two large boxes 46

47 SCHEDULING SIMULATION KIT Developed under NSRP Program. ATI Agreement # by Old Dominion University, Northrop Grumman Newport News and Virginia Ship Repair Association Inc. ESTIMATED DELIVERY: 6-8 WEEKS SCHEDULING KIT Cost of the kit: $ 4, LIST OF ITEMS IN THE KIT Training presentation Instructor s Guide Simulation Guide 2 Ship Models Laminated instructions and forms Digital clock with remote Acrylic Dry-dock Electric Screwdriver Variability wheel Miscellaneous stationary like, scissors, file folders, permanent markers, screw drivers, cutters, etc Kit comes in two large boxes 47

48 Value stream mapping SIMULATION KIT Developed under NSRP Program. ATI Agreement # by Old Dominion University, Northrop Grumman Newport News and Virginia Ship Repair Association Inc. ESTIMATED DELIVERY: 6-8 WEEKS VSM KIT Cost of the kit: $ 2, LIST OF ITEMS IN THE KIT Training presentation Instructor s Guide Simulation Guide 20 Lego boats Laminated instructions and forms Digital clock with remote Writing pads Variability wheel Miscellaneous stationary like, scissors, file folders, permanent markers, masking tapes, etc Kit comes in two large boxes 48

49 TRAIN THE TRAINER PROGRAM Developed under NSRP Program. ATI Agreement # by Old Dominion University, Northrop Grumman Newport News and Virginia Ship Repair Association Inc. DESIGN PROCESS KIT SCHEDULING KIT SHIP REPAIR KIT SUPPLY CHAIN KIT Train the Trainer Program VSM KIT ON-Site - $ 6, Two-day training for up to 15 people Training in two of the five simulation areas Includes travel cost for 1 instructors and 2 assistants At ODU in Norfolk, VA - $ 3, Two-day training for up to 15 people Training in two of the five simulation areas 49

50 QUESTIONS??? For additional information Please visit the project web site: or Contact: Dr. Alok K. Verma P.E., CmfgE Chief Technologist Lean Institute Ray Ferrari Professor Engineering Technology Department, KH-214 Old Dominion University, Norfolk, Virginia, USA Tel: (757) Fax: (757)