INTEGRATING INFORMATION FLOW WITH LINKED-CELL DESIGN IN MANUFACTURING SYSTEM DEVELOPMENT by Anna W. Mierzejewska B.S., Mechanical Engineering, 1998 Massachusetts Institute of Technology Submitted to the Department of Mechanical Engineering in partial fulfillment of the requirement for the degree of Master of Science in Mechanical Engineering at the Massachusetts Institute of Technology June 2000 0 2000 Massachusetts Institute of Technology All rights reserved A uth or ........................................................ .. ...... Department of Mechanical Ejgineering ay 5, 2000 C ertified by .................................................................................. David S. Cochran Assistant Professor of Mechanical Engineering Thesis Supervisor A ccepted by ............................................ Chairman, Departme 7 Ain A. Sonin on Graduate Students MASSACHUSETTS INSTITUTE OFTECHNOLOGY SEP 2 0 2000 I LIBRARIES I INTEGRATING INFORMATION FLOW WITH LINKED-CELL DESIGN IN MANUFACTURING SYSTEM DEVELOPMENT by Anna W. Mierzejewska Submitted to the Department of Mechanical Engineering on May 5, 2000 in partial fulfillment of the requirement for the degree of Master of Science in Mechanical Engineering Abstract In order to stay competitive, manufacturing companies have to face the challenge of being responsive to customer's needs by reducing cost, improving quality, and shrinking lead times. To achieve these objectives, a manufacturing system should be developed based on a clear understanding of the difference between value-adding and wasteful tasks. In a linked-cell system, the flow of material and information through all the production units determines system performance in terms of efficiency and responsiveness. Although sources of waste in material flow are easier to observe and thus eliminate, information flow pattern is usually given less attention and the effect that the information flow has on the material flow has been less understood. Thus, system development and implementation usually starts with decisions about equipment purchases and their layout, and system information flow is usually forgotten until the end of the system development process. This work attempts to show how information flow influences material flow and thus, performance of the overall system. The objective of this thesis is to present the integration of information and material flow in the conveyance (withdrawal-replenishment) system and its role in design of the production system. Various types of conveyance systems are presented and a discussion on their applicability is included. A case study is described to illustrate the need for change and some of the difficulties in the implementation process. Thesis Supervisor: David. S. Cochran Title: Assistant Professor of Mechanical Engineering 3 4 Acknowledgements I would like to thank Professor David S. Cochran for giving me the opportunity to do my research in this area and to be part of the Production System Design Laboratory at MIT which I have greatly enjoyed. My thanks also go to Visteon Monroe for giving me the motivation for research and for sponsoring my project. During my assignment at Monroe, I have received much support and friendship from many people, but especially from Ed Umin, for whom I have particular respect, Tim Rosengarten, Phil Wylie, Bill Nolan, Ed Patino, Ray Carravallah, and Karen Smith, to name a few. I also enjoyed working on the project with Jeff Smith and Steve Rupp - thank you for helping me learn. The brainstorming with Brandon Carrus enriched my stay there and kept me sane. I would also like to thank all the lab members for putting up with me and providing me with valuable advice on survival and research, especially Jorge Arinez and Jim Duda. My words of appreciation go to Pat Smethurst for her help in so many things and also for taking her time to proof read my thesis. I give my special thanks to Jose Israel Castafteda-Vega for his support, encouragement and advice but most importantly his valuable time. Without you, it would not be the same. Thank you for helping me through it and always giving me new ideas as well as your patience. I hope you finish soon. Finally, I would like to thank my entire family for their support but most especially my father for sharing his passion for engineering and my mother for everlasting support and encouragement. Thank you for your teachings and support. B6g zapla. 5 6 Table of Contents ABSTRACT............................................................................................................................. 3 ACKNOW LEDGEM ENTS ................................................................................................ 5 TABLE OF CONTENTS ................................................................................................... 7 1 2 INTRODUCTION...................................................................................................... 1.1 THESIS OBJECTIVE.................................................................................................. 12 1.2 THESIS OUTLINE ................................................................................................... 13 BACKGROUND ........................................................................................................ 15 2.1 IMPORTANCE OF MANUFACTURING AS COMPETITIVE ADVANTAGE ...................... 15 2.2 DEFINITION OF MANUFACTURING SYSTEM ........................................................... 17 2.3 HOLISTIC VIEW OF THE SYSTEM ............................................................................ 18 2.4 COMPONENTS OF MANUFACTURING SYSTEM.......................................................... 21 2.4.1 Elem ents..................................................................................................... . 21 2.4.2 Connections................................................................................................. . 22 2.5 3 11 LINKED-CELL SYSTEM .......................................................................................... 23 DECOMPOSITION FRAMEWORK IN PRODUCTION SYSTEM DESIGN..... 25 3.1 AXIOMATIC DESIGN APPROACH IN PRODUCTION SYSTEM DESIGN DECOMPOSITION25 3.2 FR'S AND DP's OF INFORMATION AND MATERIAL FLOWS ................................... 28 3.2.1 MaterialFlow ............................................................................................... 30 3.2.2 Information Flow ........................................................................................ 31 3.2.3 General ....................................................................................................... . 32 7 3.3 4 5 Controllabilityof the Productionat the Line................................................ 3.3.2 Impact of the information and materialflows on the system performance..... 34 INFORMATION SYSTEM 33 ...................................................................... 35 4.1 MODES OF MATERIAL FLOW ................................................................................... 38 4.2 INVENTORY STRATEGIES ...................................................................................... 41 4.3 PATTERNS OF INFORMATION FLOW UNDER VARIOUS CONTROL POLICIES ................. 43 CONVEYANCE METHODS IN LINKED-CELL SYSTEMS ............................. 47 5.1 CONVEYANCE: WITHDRAWAL, REPLENISHMENT ...................................................... 47 5.2 KANBAN AS A TOOL .............................................................................................. 50 5.2.1 Types of kanban .......................................................................................... 50 5.2.2 Kanban systems........................................................................................... 52 5.2.3 Specifications of kanban systems ................................................................. 54 CONVEYANCE METHODS ........................................................................................ 58 5.3.1 Mechanism of conveyance ........................................................................... 58 5.3.2 Pacemakerelement withdrawal.................................................................. 60 5.3.3 Types of conveyance methods ...................................................................... 61 5.3.4 Examples of withdrawalsystems ................................................................. 63 CASE STUDY ............................................................................................................... 6.1 INITIAL SYSTEM ..................................................................................................... 67 68 6.1.1 Informationflow - the initialsystem .......................................................... 69 6.1.2 Materialflow - the initial system.................................................................. 70 6.2 7 33 3.3.1 5.3 6 INTERRELATION BETWEEN MATERIAL AND INFORMATION FLOWS....................... REDESIGNED SYSTEM - TOWARDS THE IDEAL STATE ............................................ 73 6.2.1 System level - redesignedsystem.................................................................. 74 6.2.2 Line level - redesignedsystem.................................................................... 78 6.3 PRESENT SYSTEM - TRANSITION STATE.................................................................. 81 6.4 FURTHER DEVELOPMENT ....................................................................................... 84 CONCLUSIONS ........................................................................................................ 87 REFERENCES ...................................................................................................................... 89 8 9 10 Introduction 1 In today's world market, companies compete fiercely to gain and retain customers. However, customers are becoming more finicky; ultimately they want to get their product for free, they want it perfect, and they want it now [Hartman and Rodin, 1999]. In order to compete, the manufacturing companies have to face this challenge with ever-increasing dedication, by reducing cost, improving quality, and shrinking lead times. This challenge places significant requirements on the manufacturing system to be responsive to customer needs. Responsiveness to customer needs has been the underlying objective of the Toyota Production System (TPS) [Ohno, 1988], causing Toyota to be the most benchmarked manufacturing company in the world today [Spear and Bowen, 1999]. The basic concept of TPS is the elimination of activities that do not add value to the product, or elimination of waste in the system. The following categories of waste have been identified [Ohno, 1988]: " Overproduction - waste of resources needed to produce something that the customer does not request at the moment; it will also cause additional waste in other areas, such as transportation, and inventory. " Waiting - waste of operator time. - Transportation - waste of resources (including labor) on non-value adding activity. " Additional processing - waste of labor and machine resources on additional operations, such as rework. - Inventory - waste of space and labor resources associated with inventory management. 11 Movement - waste of labor resources on activities that do not add value to the " product. Non-perfect yield - waste of resources used to make parts that cannot be sold because - they are defective or need to be reworked (requiring additional resources). The elimination of sources of waste in the system improves its efficiency, in terms of the quality of the products, the response time to the demand, and the cost [Ohno, 1988]. 1.1 Thesis Objective Because the performance of a manufacturing system depends to a great extent on the underlying design of the system, the elimination of waste also places requirements on the production system development to prevent waste from occurring in the first place. Designing the value stream, i.e. all actions performed to manufacture a product [Rother and Shook, 1998], should be done to ensure that these actions in the value stream are in fact value adding. The value stream is comprised both of material flow, i.e. actions associated with the processing and movement of material, and of information flow which dictates and controls the flow of the material. Although sources of waste in material flow are easier to observe and eliminate, the information flow pattern is usually given less attention and the effect that the information flow has on the material flow has been less understood. Thus, the system development and implementation usually starts with decisions about equipment purchases and their layout, and the information flow in the system is usually forgotten until the end of the system development. This work attempts to show how information flow influences material flow and thus, the performance of the overall system. The objective of this thesis is to present the integration of information and material flow in the conveyance (withdrawal-replenishment) system and its role in the production system design. Various types of conveyance systems are presented and a discussion on their applicability is included. 12 1.2 Thesis Outline This thesis starts with the background information in Chapter 2, which discusses the importance of manufacturing and defines manufacturing system. This chapter also presents the scope of the manufacturing systems analyzed and introduces the value stream mapping method used throughout this work to illustrate material and information flows. Finally, the linked-cell system, which is the focus of the scope of this thesis, is defined. Chapter 3 presents the decomposition framework used in this thesis to analyze the requirements that overall system design places on information and material flows. The interdependence of information and material flows is discussed. Information systems are the subject of Chapter 4. Various modes of material and information flows are presented and their patterns under various control policies are described. Chapter 5 focuses on conveyance methods. First, the conveyance is defined and its mechanism is described in detail. Kanban systems are presented to illustrate how the information authorizes and controls material flow in conveyance. Finally, various conveyance methods are described in detail, and a discussion of their applicability is provided. The motivation for this work is presented in Chapter 6. This case study describes an initial manufacturing system in an existing plant, displaying various types of waste and the need for a system redesign. The redesigned system is then presented, along with the principles underlying its design. Finally, the transition state is described, with a discussion of the difficulties of implementation of the redesigned system and further recommendations provided. Finally, Chapter 7 concludes this thesis by providing a summary and the recommendation for further work. 13 14 2 Background Manufacturing is the prime activity of many companies. Because of its role in value-adding transformation of goods, it is critical in satisfying customer needs. This chapter discusses the importance of manufacturing as a competitive advantage, defines what a manufacturing system is, introduces the graphical representation of manufacturing systems used in this work and specifies the scope of this work by presenting the manufacturing system types considered. 2.1 Importance of Manufacturing as a Competitive Advantage Any enterprise can be viewed as a chain of capabilities that enable it to satisfy the customer's demand [Fine, 1999], as shown in Figure 2-1. This view goes beyond the organizational or technological structure of a traditionally defined supply chain. Rather, it looks at activities that are necessary under system development and not only system execution. As for any chain, a prevalent principle holds true: a chain is only as strong as its weakest link. Therefore, all components of the capability chain, whether owned by the company or external to it, should be taken into consideration as key to gain advantage over the competition. Manufacturing is one of those links. Wheelwright and Hayes list four stages of the strategic role of manufacturing [Hayes and Wheelwright, 1985]: 1. Internally neutral: minimize the negative effect of manufacturing. Outside experts are called in to make decisions about strategic manufacturing issues. Internal, detailed management control systems are the primary means for monitoring manufacturing performance. Manufacturing is kept flexible and reactive. 15 2. Externally neutral: achieve parity with competitors. Industry practice is followed. The planning horizon for manufacturing investment decisions is extended to incorporate a single-business cycle. Capital investment is the primary means for catching up with competition or achieving a competitive edge. 3. Internally supportive: provide support to the business strategy. Manufacturing investments are screened for consistency with the business strategy. A manufacturing strategy is formulated and pursued. Longer-term manufacturing developments and trends are addressed systematically. 4. Externally supportive: manufacturing contributes significantly to competitive advantage. Efforts are made to anticipate the potential of new manufacturing practices and technologies. Manufacturing is involved "up front" in major marketing and engineering decision. Long-range programs are pursued in order to acquire capabilities in advance of needs. Manufacturing, being one of the links in the chain of capabilities, can be therefore a source of competitive advantage, provided that the manufacturing strategy is aligned with overall business strategy. Organizational Supply Chain 4th Tier Supplier 3rd Tier Supplier 2nd Tier Supplier 1st Tier Supplier Assembler Casting Valve lifters engines Cars Equipment Development Line Design Production System Design Manufacturing Dealer Technology Supply Chain cheitry Capability Chain Machine Controls Design Supply Chain Management Figure 2-1. Supply chain mapping illustrating elements required to satisfy customer's needs (adapted from [Fine, 1999]). 16 However, because the world we live in is constantly changing, especially in a business sense, no single capability should be viewed as a sustainable advantage [Fine, 1999]. Because of the increasing speed of change in industry, each company needs to reinvent itself over and over again. This necessity places an important requirement on manufacturing strategy: not only to provide a competitive advantage now, but also to develop new capabilities for the future. In the case of manufacturing, this necessity relates not only to processes and technology development but also to the organization and its ability to change. This flexibility and anticipation of windows of opportunity to gain competitive advantage is the ultimate core competency of business. 2.2 Definition of a Manufacturing System Manufacturing can be defined as the transformation of material into something useful and portable [Gershwin, 1994]. A manufacturing system, however, encompasses not only a sequence of operations that add value to a product through transformation, but also some other required tasks such as storage, inspection and transportation, which do not take part in the transformation but are required to complete the process, as well as the policies governing those processes. Manufacturing systems can be classified according to their process structure [Hayes and Wheelwright, 1979]: - Job shops " Disconnected flow lines - batching - Connected flow lines " Continuous flow processes The process structure defines how the material flows through the plant and is usually related to the type of product produced, as shown in Figure 2-2. The manufacturing systems considered in this work are continuous flow lines, intended for repetitive production of discrete items. They are characterized by a defined part routing and are connected by a paced material handling system. 17 Process structure Jumbled flow (job shop) ardization Multiple products Few major products high stndardization commodity products higher volume volume onelow low s Ship building Disconnected line flow (batch) Connected line flow (lines or cells) Continuous flow Heavy equipment Auto assembly Sugar refinery Figure 2-2. Matrix of manufacturing systems' process structure (adapted from [Hayes and Wheelwright, 1979]). 2.3 Holistic View of the System In order to analyze the behavior of the entire manufacturing system it is important to take a holistic view, rather than view it from a reductionist perspective [Hopp and Spearman, 1996]. This broad view allows for overall understanding of system behavior rather than one with limited impact caused by a narrow focus. It prevents local optimization and instead seeks overall system optimization. By relating customer requirements to system requirements, the holistic view of the system allows concentrated analysis or design of the system based on the parameters that have the greatest impact on overall system performance relevant to the customer. The system view recognizes that an understanding of entire system behavior requires understanding its components. Therefore, any system, in this case manufacturing, is seen to consist of various subsystems. Analyzing the parameters influencing the behavior of those subsystems and the principles governing their interrelations provides an understanding of the entire system. During the design of a system, the holistic view allows the overall system 18 objectives as seen by the customers to relate to the requirements for subsystem design. This decomposition of the requirements and design parameters is further discussed in Chapter 3. Viewing a system as a set of interacting subsystems also permits one to look at various levels of detail, as shown in Figure 2-3. The overall system can be viewed at the inter-company level of supply chain management, where decisions are aimed maximizing end-customer satisfaction, at the same time maximizing profit shared over the entire chain beyond the borders of the given company [Fine, 1999]. Those decisions which will greatly impact customer satisfaction should not only include the supply chain design, including supplier selection, relationships and transportation, but also issues such as product design and variety portfolio. Furthermore, the supply chain view shows the impact that decisions at the company level have on performance of the entire chain. Company level objectives can be further broken down into the objectives of particular facilities, which should be aligned with the company's business strategy. Furthermore, the level of detail can go down to line/cell, and finally station/machine. In this work, three levels of detail in manufacturing system design will be considered, as shown in Figure 2-3: - Plant - door-to-door view - Cell/Line * Station/Machine The door-to-door view of the plant is chosen as the highest level of detail because of its relevance to immediate implementation. However, it is important to remember that this level should be looked at in the broader perspective of requirements specified by the supply-chain system view. Because of this choice of the initial level of detail, certain characteristics of manufacturing, such as customer relations, product design, manufacturing process selection etc. are going to be looked at as fixed inputs to a design or redesign effort. This work attempts to show how this higher level of detail impacts decisions on cell/line design and further station/machine design. 19 Raw material SuC End Customer Supply Chain Company C mBpr CmayB NIA Company A 7 Company B Company 7 Facility QLINE f _No-_ Am ASSEMBLY Component Market Pr9diction Information Line or Cell Finished Par Incoming Material Material flow Station Gomez, 1999 Figure 2-3. Various levels of detail for manufacturing system analysis. 20 2.4 Components of a Manufacturing System A manufacturing system can be represented graphically by means of value stream mapping [Rother and Shook, 1998], Figure 2-4. This simple method allows one to visualize the material and information flows between components of a manufacturing system. The following sections describe the different components of value-stream mapping and its graphical representation. ASSEMBLY Manual Information Flow 4Manufacturing Process Electronic Information Flow CUSTOMERS Outside Sources '4 ---7 ---- - Truck Shipments 0 Movement of Finished Goods to Customer Inventory Material Flow Physical Pull Physical Push -FIFO- 15 mi. Part Market P' Signal Kanban Transfer of Controlled Quantities of Material in a First-In-First-Out Sequence Load Leveling of Volume and Mix over a specified period of Time Figure 2-4. Value stream mapping symbols [Rother and Shook, 1998]. 2.4.1 Elements The main elements of a manufacturing system are units of production, which keep a constant amount of material in process (WIP). They could be stand alone machines or cells and lines, given that all of the machines in the unit operate at a common production rate and operating pattern. A sample manufacturing system is shown in Figure 2-5. In a manufacturing system, 21 any such element has its suppliers (either internal suppliers - its upstream operations or external - outside suppliers delivering raw material or components) as well as its customers (either internal customers - its downstream processes, or external customers receiving end products). At the same time, each element itself is a customer and a supplier to internal and external elements. If a given element has multiple suppliers, it is generally an assembly operation; if it has a single supplier, it is likely to be a machining line or a stand-alone process such as a stamping press. Connections --- ROCEASSEMBL SUPPLIER -__ CUTOMEIRS Figure 2-5. Sample manufacturing system with its elements and connections. 2.4.2 Connections The connection between adjacent elements in a manufacturing system consists of two components: material flow and information flow. Material connection describes how the material is moved between various elements of the system. Its characteristics include: " location and size of the inventory " material movement prioritization policies (FIFO, FISFO, random, etc) " material movement batch size (related to container size for transportation and the capacity of the transport medium). The information connection determines how the production schedule is communicated to all elements of the system. This information consists of what needs to be produced and when it needs to be produced. The main parameters describing the flow of information in a manufacturing system are: " number of the instruction points, where the information is released to the system (either single or multiple) " instruction points location (finished goods inventory, its components inventory, the last or the first operation of the cell) 22 2.5 m information transfer medium (production authorization card, electronic) m information transfer frequency Linked-Cell System A linked-cell system is a manufacturing system composed of manufacturing and assembly cells linked by a pull system, thus providing a continuous flow and smooth movement of materials through the plant [Black, 1991]. A linked-cell system has a single instruction point, from which production requirement information is issued to upstream processes, in a direction opposite to the material flow. Therefore, production is based on actual usage downstream, rather than a forecast requirement. The cells can be linked directly to each other by placing them directly at the point of use or indirectly by the pull system of material control called kanban [Black, 1991], described in detail in Section 4.3. The buffers between cells are used to protect downstream elements from delays in upstream cells, providing a self-correcting mechanism for production requirement information to compensate for variations in the system. The linked-cell system requires a defined and constant internal customer - supplier structure for a given product type; a given product type has a defined part routing - a sequence of machines and a path it always takes in its manufacturing process, which is essential in the flow line process structure. This type of the manufacturing system will be primarily discussed in this work. 23 24 Decomposition 3 Framework in Production System Design As mentioned in the previous chapter, a holistic system view in production system design gives the relation between system objectives, as seen by the customer, and the requirements for subsystem design. Such a relation helps to prevent local sub-optimization. An approach to relate these objectives is the decomposition method provided by the axiomatic design theory [Suh, 1990], which can be understood as a top-down analysis of objectives and requirements [Duda, 1999]. Axiomatic Design Approach in Production System Design Decomposition 3.1 The design decomposition approach using axiomatic design is a formalized methodology to structure the design process. Its goal is to answer two questions: " What are the objectives of the subsystem? " How can given objective be achieved? By answering these two questions, Functional Requirements (FR) and Design Parameters (DP), respectively, are established. The pairs of FRs and DPs can be further decomposed into lower levels of details by again answering the above questions. Additionally, the answer to the question: - How can performance against the given objective be measured? appoints a performance measurable (PM), which can be used to evaluate how well the given DP meets related FR. 25 In the decomposition of the design, it is important to adhere to the two Axioms that govern the design process: 1. Independence Axiom: Maintain the independence of the Functional Requirements 2. Information Axiom: Minimize the information content of the design. The independence axiom demands that any given DP satisfies a unique FR. Information axiom states the necessity for simplicity in the design. The Production System Design Decomposition (PSDD) [PSD, 2000] has been developed using the axiomatic design approach to relate higher-level business objectives to the requirements of production system elements. The complete PSDD is shown in the insert at the end of this thesis. The initial decomposition, shown in detail in Figure 3-1, branches out to the four fundamental dimensions of manufacturing [Hill, 1994]: quality, cost, response time and reliability, which define classifications for the lower levels of the PSDD hierarchy. The top-down analysis of the PSDD highlights the fact that a manufacturing system and the specifications for its design should be seen as the result of a complex set of dependencies and constraints and is influenced by the way its performance is measured. Consequently, there are many options for making use of manufacturing resources; many ways to have time, inventory, equipment and people work in the system, in order meet the requirements (quality, cost, response time, response reliability) [Castafieda-Vega, et al., 2000]. Meeting those requirements also establishes requirements for the information and material flow within the system. The option selected should result naturally from the high-level performance metrics employed and reflect the business strategy. With the aid of the PSDD, the designer can make better decisions during the development or improvement processes because of being able to see where a design parameter with its related functional requirements and performance metrics is located in the entire system hierarchy. The PSDD groups similar characteristics of production systems in a way that can be used to formulate new system designs, evaluate current performance, guide the redesign of an existing system or help make informed decisions regarding changes to be made [Carrus and Cochran, 1998]. 26 FR I Maximize long-term return on investment PM1 Return on investment over system lifecycle DP I Manufacturing System Design FR 11 FR 12 FR 13 Maximize sales revenue Minimize production costs PM 11 PM 12 Minimize investment over production system lifecycle Sales revenue Manufacturing costs -----[:::::====-,----------------------DPI12 Elimination of non-value adding sources of cost DPI11 Production to maximize customer satisfaction FR 111 Manufactu re products to target design specificati ons PM 111 FR112 Deliver products on time n 440 PM 13 Investment over system Iifecycle DPI13 Investment based on a long-term strategy FR 113 Meet customer expected lead time Investment DP.E PM 112PM11 Process capability Percentage on-time deliveries Difference between mean throughput time and customer's expected lead time DP111 DP112 DPI12 Production processes with minimal variation Throughput time variation reduction Mean throughput time reduction from target r - I--I Figure 3-1. Highest levels of PSDD branching out to the four fundamental dimensions of manufacturing. 27 FRs and DPs of Information and Material Flows 3.2 A complete version of PSDD reveals the requirements placed on material and information flows for a given production system. The location of these requirements in the overall PSDD structure is highlighted in Figure 3-2. It can be seen that they mostly reside in two branches of the decomposition: Predictable Output and Response Time. However, their influence on the performance of the system, as it will be discussed in Section 3.3, spans many branches. Figure 3-2. Location of requirements placed on material and information flows in the overall PSDD structure [PSD, 2000]. The above mentioned requirements are shown in detail in Figure 3-3. They can be divided into the following functional categories: 1. Material flow: = Incoming material requirements " Finished parts movement requirements 2. Information flow: - Production information content and availability requirements 3. General: " Requirements for replenishment interaction with other resources " Simplicity requirement. 28 The applicability of these categories in the physical system is schematically shown in Figure 3-4. The requirements are described separately in sections below and their mutual influence is discussed in Section 3.3. Preictble Output IDelay Reduction Predctabe FR-Fl IA1, Indirect Labor FRIJI FR-fl FR-fl I I FkR-12 Iw d... ".) PM-42 ,,qk.b Pa...Um w"d - bP" PU-TI PM-fl PM-T2 Wo"I (S.1 OP-TI II IM Ow~~UM9 OP-fl OP-TI .. doobe th wve din -AMq) .a. PM-PuPM-P1 FR-Tfl .. b a po FR-fl1 Aba*. .q~b.* S, Ow V -P- a - 1 PM-TII bk-Ta. ,WWFShhi.bd5 f.ft PM-Tm3 ,.I.-f P.qn W FR- Pl4 FR-P141 .*Mpf PM-11P -ktb Ua.Pdt p.-o for ft, d-d PM-flS .55. FR-Tm3 - FR-TSI E w -P M-PM14 l O5 d- W. a.. 55gb a p. b.S.& ~~N a"" d..I"- a. Pa .... d a.,. a---a---------- -1 .ya,. D gP b Figure 3-3. Branches of PSDD with requirements placed on material and information flows. 29 - General Requirements FR-T53 Ensure that support resources don't interfere with one another FR-T51 Ensure that support resources don't interfere with production resources FR-12 Eliminate information disruptions Aq . / FR-T31 Provide knowledge of demanded product mix (part types and Quantities) I--- --- Componjnt FR-P11 Ensure -l FR-P14 Marke arrival rate is Ensure material availity equal to service rate (ra=r,) Finished Parts> Incoming Material I-------------------------------I Figure 3-4. Physical system with applicable requirements on material and information flows. 3.2.1 MaterialFlow The main necessity for material flow expressed by FR-P14 is that the material must be available at the line, see Figure 3-5. This requirement is answered by the DP-P14, which calls for a standard material replenishment system in which FR-P14 Ensure material availability replenishment worker(s) (replenishers) will deliver required Number of disruptions due to material shortages, amount of interruption time materials to the line. In order to achieve this design parameter, its prerequisites are that the parts actually be for material shortages available to the material handlers (FR-P141), which can be achieved through market places linked with the line and their Standard material re lenishment system FR-P141 Ensure that parts are available to the material FR-PI42 Ensure proper timing of part arrivals supplying upstream processes (DP-P141), and that part arrival is properly timed (FR-P142), according to handlers PM-P141 Number of occurrences of marketplace shortages PM-P142 Parts demanded - parts delivered -responsible DP-P141 Standard work in process between sub-systems DP-P42 Parts moved to downstream operations according to pitch pitch (DP-P142). This initiates the definition of the replenisher's or material handler's job, where he is for delivering the material to the line, according to its needs during the designated delivery pitch. Figure 3-5. Requirements for incoming material. 30 Another part of the material flow is the movement of finished parts from the line, as well as delivery of empty containers, if applicable, see Figure 3-6. This is addressed by FR-T23, which asks that the part arrival rate to the downstream FR-T23 Ensure that part arrival rate is equal to service rate (ra=rs) customer - or part departure rate from the supplier process be equal to the demand rate expressed by service rate. This PM-T23 Difference between arrival and can be achieved by movement of parts according to pitch (DP-T23). The physical movement associated with this pitch service rates (retrieval pitch) will also act to pace the production, which is especially important with the issue of controllability of the DP-T23 Arrival of parts at downstream operations according to pitch line. This topic will be further discussed in Section 3.3. Figure 3-6. Requirements for finished parts movement. 3.2.2 Information Flow The PSDD expresses the importance of information flow, see Figure 3-7. Functional Requirement FR-P 11 declares the necessity for relevant production information to be available at the line. Designing and implementing a capable and reliable information system (DP-P1 1) will allow that important prerequisite for predictable output of the line. PSDD also specifies what kind of information is required by stating the need for knowledge of FR-P11 Ensure availability of relevant production information FR-T31 Provide knowledge of demanded product mix (part types and quantities) PM-Ph1 PM-T31 Number of occurrences of information disruptions, Amount of interruption time for information disruptions Has this information been provided? (Yes/No) 111 DP-P1 1 Capable and reliable information system demanded product production line mix to the (FR-T3 1). Therefore, information flow from the customer (DP-T3 1) will dictate not only the quantity of demanded products but also the mix specifying as part variety called for, as well DP-T31 Information flow from downstream customer timing of the order to ensure the expected response time. Figure 3-7. Requirements for flow of production information. 31 3.2.3 General The PSDD also places requirements of a general nature on both the material and information flows external to the line, as listed in Figure 3-8. Because material and information movements involve indirect labor, FR-12 requires the elimination of information disruptions, which will help reduce the indirect labor tasks (DP122). This can be achieved by implementing a visual factory (DP-12), which simplifies the tasks performed by support resources such as replenishers. FR-T51 and FR-T52 require that the support resources that aid in the material and information flows do not interfere with production in the line and with other support resources. DP-T51 ensures that the production line is designed to prevent disruptive part delivery or disruptive part changeover, whereas DP-T53 proposes task separation and coordination to prevent ambiguity in function performed by each support person. This design parameter proves to be quite important in ensuring reliability of the material and information flows as well as controllability of the line and, therefore, of the entire system. FR-T51 Ensure that support resources don't interfere with production resources FR-T53 Ensure that support resources don't interfere with one another PM-T51 Production time lost due to support resources interferences with production resources PM-T53 DP-T51 Subsystems and equipment configured to separate support and production access requests Production time lost due to support resources interferences with one another PM-12 Amount of indirect labor required to schedule system DP-T53 Ensure coordination and separation of support work patterns DP-12 Seamless information flow (visual factory) Figure 3-8. General requirements for replenishment. 32 FR-12 Eliminate information disruptions 3.3 Interrelation Between Material and Information Flows Although the requirements for information and material flows are listed throughout the PSDD branches, they seemed to be discussed separately. This section attempts to point out their interdependence and mutual influence. 3.3.1 Controllabilityof the Productionat the Line As described in Section 3.2.1, the retrieval pitch - the frequency with which end products are removed from the line to be delivered to the immediate customer - has an important role in the performance of the system. Although it is directly related to material movement, it also has information content; every time a material handler comes to pick up finished goods, an evaluation of the production status can be made: are the parts ready to be picked up, or is the line falling behind schedule? This assessment can be further substantiated if the same material handler brings empty containers to the line. The equal exchange of empty containers for filled ones validates the status of production. For example, if two empty containers are brought to the line at the specified time but only one container is ready, it is clear that the line is behind. The coupling of finished goods pickup and empty container delivery also controls overproduction; since only a specified number of containers is delivered, the line has to wait for the next retrieval pitch to continue production. Therefore, this coupling is implementation of a self-controlling system to prevent overproduction. The key point in the controllability of the line is, however, the above mentioned information content of the material movement. The knowledge of the behind/ahead status of the line is important information that can be used to react to system problems. If the material handler, aside from material movement, is also responsible for bringing production information to the line, the production status can be delivered to the scheduler with every retrieval pitch. This brings the following benefits: - Responsiveness: the scheduler can take action according to production status information; for example, if the line is behind, additional resources can be sent to solve the problem, line capacity can be increased (by reducing takt time), the schedule can be re-sequenced according to priorities, arrangements for overtime can be initiated, or customers can be contacted early on about possible delays. 33 x Reliability: since one person is obligated to deliver information and remove finished goods, there is no ambiguity about who is accountable, and even a sense of ownership can be developed, where the material handler is solely responsible for the connection between the two elements in the system, shown in Figure 2-5. For these reasons, it is beneficial to tie the material and information flows together, having a single person perform both tasks at a given linkage in the system. A similar connection can be done with line replenishment, where the replenisher brings necessary material to the line. Here, the information content, which might easily get lost, is related to the quality of incoming material. If material is delivered in prescribed quantities in every delivery pitch interval, any quality problems are easily noticeable and can be tracked down and communicated promptly to suppliers. This is especially important with internal suppliers, for which immediate feedback can improve output quality. With external suppliers, the feedback cannot be as rapid and, therefore, this approach might prove less valuable. In either case, although the information content on incoming material quality might serve an important role, it is also essential to design robustness against possible defects in incoming material into the replenishment system to deal with problems that may arise and prevent down time of the line. Section 5.3 provides a more detail description of possible replenishment options, as well as a discussion of some of the factors that will influence the choice. 3.3.2 Impact of Information andMaterialFlows on the System Performance From the above discussion, it can be seen that material and information flows might impact many PSDD branches spanning all four fundamental dimensions of manufacturing. Since the FRs discussed in Section 3.2 come from the Predictable Output, Delay Reduction and Indirect Labor branches, their impact on those dimensions is obvious, see Figure 3-2. However, as Section 3.3.1 suggests, the combined material and information flow strategy will also have impact on the ability to identify and resolve problems of over- or underproduction by frequent information conveyance. Also, by providing robustness against incoming material quality problems, a well-designed replenishment system will improve the quality output of the manufacturing system. Thus, the material and information flow requirements span all major branches of PSDD. 34 4 Information System Design In general sense, information is a piece of knowledge represented by data that can be interpreted and used by humans [Solvberg and Kung, 1993]. In the context of a manufacturing system, not all of the information is actually used. Hence, information can be divided into formal information -which is recognized, communicated and cultivated within the organization, as well as informal information -which is comprehended or collected by individuals, but not communicated, at least not in a formal manner, with others, not utilized in the enterprise. One of the goals of production system design is to recognize what information should be formalized and how it should be communicated. Therefore, a complete information system not only collects, stores, processes, and distributes information [Solvberg and Kung, 1993] but also defines how and what information is created, how it flows in the physical system, and how it is utilized and executed to impact production. Therefore, the information system is not merely a computerized information system such as many companies implement, but also the physical aspect of it, including human interaction in conveying the information, and physical movement and interaction with other production resources. Indeed, information system is intertwined with the physical part of the production system. These two subsystems: the physical system - represented by the material flow, and information system - represented by information flow, are integral parts of the entire production system and, therefore, greatly impact one another in the design process. Hence, the layout of the physical elements will influence how the information flows and vice-versa - how and what information is communicated will influence the required physical system layout. This interconnection of material and information systems also makes it difficult to discuss information flow patterns 35 without describing the material flow that it induces. Section 4.3 discusses both information and material flows together under various control policies. The complete information system of an enterprise has many subsystems, which encompass all of the functional elements of the enterprise, as shown in Figure 4-1. The manufacturing information system is one of those subsystems, interacting with other subsystems shown. The goal of a manufacturing information system is, as shown in Figure 4-1, to plan, schedule, control, monitor, and facilitate various aspects of production, which refer to various level of detail, as discussed in Figure 2-3. This work will consider the aspects pertinent to the line and facility level of detail. Those details are shown in a rectangle in Figure 4-1. The set of these elements is going to be referred to in this work as the information system in the production system. Enterprise Information System Engineering Information System Manufacturing Information System Planning, che Process Control Production / Capacity Human Resources Information System ling, ontr 1, M itori Material Movement , Facilitating Material Requisition of Inventory Figure 4-1. Elements of enterprise information system. 36 Marketing Information System Production Resources Other ... In order to understand the impact of the manufacturing information system on the production environment, it is useful to break it down along the time dimension. Time scale defines planning horizon hierarchy in the decision-making process, shown in Figure 4-2. The three decision levels - strategic, tactical, and operational, concern all aspects of manufacturing, such as capacity, material movement, material requisition, and inventory from Figure 4-1. For example, material requisition at the strategic level requires selecting suppliers and defining the type of relationship. At the tactical level, purchasing policy - frequency and method of material ordering - needs to be established. Finally, at the operational level, facilitating delivery of ordered materials is required. At all of the above mentioned levels, information is crucial in making the decisions. Competitive Strategy Se Strategic Inventory Strategy and Process Technology Tactical Production System Design and Control & Scheduling Operational Figure 4-2. Planning horizon hierarchy in decision-making process (adapted from [Wein, 2000]). This work is mainly concerned with the operational and tactical level of decision-making. This chapter presents issues such as mechanisms of material and information flows, selection of instruction point in the system, inventory strategy and the basic types of information patterns. Those decisions at the tactical level will impact the operation of the production system. Therefore, this chapter discusses the information system in terms of the requirements for information flow rather than as a computerized tool for information system management. 37 4.1 Modes of Material Flow In a production facility, the movement of material is often compared to the flow of a fluid ([Hopp and Spearman, 1996], [Rother and Shook, 1998], [Black, 1991], [Bonvik, 1996]). This model is an accurate representation of material movement in continuous processes, but even for production of discrete parts this model is a close approximation, especially on the conceptual level. This comparison between material movement and fluid flow in discrete-part production is discussed below. Following this model, the flow is characterized by its velocity or by its volume flow rate, Q. In a production facility, the volume flow rate can be compared to the production rate, or production throughput. When the flow accumulates in a tank, the concept of capacity is introduced. Its equivalent in production is inventory, which is also characterized by its capacity. Furthermore, the fluid can accumulate in terms of increased density, p i.e. increased particle (mass) count in given volume, which in the production environment is accumulation of Work-in-Process (WIP) within a production unit, causing material flow congestion. The fluid moves or flows because of a pressure difference across the length or as a result of flow source. Three basic scenarios can be visualized: flow caused by low pressure source, flow induced by high pressure source and flow initiated by flow source, shown in Figure 4-3. In manufacturing, those three scenarios correspond to the pull, push and stream local flows and they depend on the information flow in the system and more precisely how the production is authorized. In a pull mechanism, most typically a production unit will initiate production in response to withdrawal of a part by its immediate customer. This situation is best illustrated by flow caused by a low-pressure source, Figure 4-3(a). When a downstream process or customer withdraws a part, a low pressure is created - the need to replenish that part. This condition initiates the production and flow of parts. Through this mechanism, the output of the unit is parallel to what has been requested, corresponding to the low pressure imposed. 38 Low pressure a) b) Pressure gradient High pressure) source Flow C) source source Congestion Uniform flow Figure 4-3. Scenarios for fluid flow: a) low-pressure flow, b) high-pressure flow, c) flow source flow. Under the push mechanism, the production unit produces according to a schedule or available incoming material. This condition corresponds to the high-pressure source flow scenario in Figure 4-3(b), where the parts are pushed through the system "under pressure". This situation often causes congestion of the flow resulting in WIP buildup and, similarly to the compressible fluid flow, non-linearity in the production performance. Thus, the unit output might significantly vary in quantity and time from the actual requirements. After the parts are produced, they are pushed further downstream. Another local material flow mechanism is stream flow, compared to the velocity source flow in Figure 4-3(c). In this scenario, production is initiated by material coming in at a steady rate, so no WIP buildup is possible. Parts are not pushed downstream; rather they flow steadily downstream. Adhering to the First-In-First-Out (FIFO) policy for part processing allows the production output to be predictable in terms of quantity, sequence and timing. This mode of local material flow is used in CONWIP control policy as described in Section 4.3. Which of these modes of local material flow will actually occur in a given production system depends to a great extent upon the information flow in that system and more specifically the production control policy adopted. Figure 4-4 presents three systems that demonstrate three 39 different material and information flow patterns. As mentioned in Section 2.4.2, one of the main parameters characterizing the flow of information in a manufacturing system is the number and location of instruction points. Instruction point UPPLIER pull pull a) F - -P~ ~ A S S E M B LY R O ES GCUSTOMERS Instruction points Central ............ push a ooCrs ASSEMBLY push t-CUSTOMERS f.PRCS SUPPLIER Schdln Instruction pointnt pull pull sto c io PROCESSASML G rSUPPLIER CUSTOMERS Figure 4-4. Various material flow patterns: a) pull flow, b) push flow, c) pull and stream flows. The instruction point specifies the element in the production system at which scheduling information enters the system specifying quantity and time of required production. The system shown in Figure 4-4(b) displays multiple instruction points to which the information from the customer is distributed through central scheduling. This multiple location of instruction points is responsible for creating the high-pressure sources, which initiate the push flow mechanism of material movement. Systems in Figure 4-4(a) and (c), on the other hand, have a single instruction point from the customer. 40 4.2 Inventory Strategies Whereas the number of instruction points in a system determines to a great extent the mode of material flow, the exact location of instruction points reflects the inventory strategy chosen. Two major inventory strategies exist: build-to-stock (BTS) or build-to-order (BTO) [Hopp and Spearman, 1996]. Figure 4-5 shows both of those strategies. S PROCESS ASSEMBLY SUPPIEJRS CUSTOMERS bi) S PROCESS ASSEMBLY CUSTOMERS SUPPIERS b2) PROCESS SUPER Figure 4-5. ASSEMBLY CUSTOMERS Manufacturing systems with different inventory strategies: a) build-to-stock (BTS), bI) build-to-order (BTO), b2) assemble-to-order (ATO). Build-to-stock strategy requires that the finished goods inventory (FGI) be kept at the end of the value stream. That inventory allows delivery lead times shorter than manufacturing throughput time, i.e. the time it takes one part to go through all processes. It also provides a buffer against variations in production, demand forecast errors and enables batch production. The BTS strategy also makes it possible to build ahead to cope with seasonality of demand [Hopp and Spearman, 1996]. However, holding finished goods inventory is impractical or infeasible if there is a wide product range, products are large and difficult to store or if the inventory is likely to become 41 obsolete. In this situation, build-to-order strategy can be implemented. Under this strategy, the parts are made for a specific order received and directly after their production, they are sent to the customer. A variation of this strategy is assembly-to-order, where the parts are assembled to a specific order and shipped to the customer but the components themselves are prefabricated or build-to-stock. Table 1. Linking Manufacturing Strategy to inventory strategy choice (from [Hill, 1994]). Arrows signify the location in the spectrum between two characteristics. Strategic Variables Build-to-Order Inventory Strategy Assemble-to-Order Build-to-Stock Type Custom-made Standard Range Wide Predetermined and narrow Low-runner High-runner Product volume per period Low-runner___High-runner Speed Difficult Easy Reliability Difficult Easy Process choice Job shop Line flow Managing changes S Maaging in sales andhand mixx Meeting delivery speed requirement Order backlog WIP or FGI Through rescheduling Reduces process Eliminates requirements lead time process lead time FGI Inventory strategy - decision at the tactical level - is an important influence on both material and information flows. Table 1 presents some of the strategic variables that influence the choice of inventory strategy. Depending on product characteristics, if the product is highly customized, BTO inventory strategy should be used (job shop process structure is often used in these circumstances). As the product becomes more standardized, ATO or BTS strategy might become feasible (line flow should be the choice for process structure). The choice of inventory strategy is also affected by the range of products. If the product range is wide, it might be infeasible to hold all types of parts in FGI and, therefore, BTO or ATO strategies are necessary. As the product 42 range becomes narrow and predetermined, BTS strategy becomes feasible. Oftentimes, the product range consists of parts produced in high volume (so called high-runners) and parts produced less frequently (low-runners). In order to prevent holding inventory that is not needed for long periods of time, the low-runners should be managed under BTO strategy, whereas the high-runners might be managed under BTS strategy. BTS strategy generally offers short lead times and more reliable delivery, since the parts requested by the customer can be simply withdrawn from the FGI. In the ATO and BTO strategies, since the processing time is included in the lead time, fast and reliable delivery becomes more difficult to achieve and the delivery speed requirement is met through rescheduling. FGI present under the BTS strategy allows to easily manage minor changes in demand volume and mix. Under the ATO strategy, the demand fluctuations might be managed to some degree with WIP before assembly, whereas BTO strategy requires keeping order backlog. 4.3 Patterns of Information Flow Under Various Control Policies Both the number of instruction points in the system and the inventory strategy mentioned in the previous sections are decisions which often are determined by the control policy of the system. A control policy is a mechanism by which the production at the shop floor is scheduled and controlled [Bonvik, 1996]. The information flow pattern dictated by the chosen control policy will therefore affect the material flow as well. One of the fundamental control policies used in industry is a push system [Hopp and Spearman, 1996]. Under that policy the information is delivered to many locations, i.e. the system has multiple instruction points. Material Requirement Planning or its later version Manufacturing Resources Planning - (MRP) is a tool used for implementation of push policy, where it schedules the release of work based on demand or forecast. The push control policy controls throughput and observes WIP and inventory levels [Hopp and Spearman, 1996] and by doing so initiates the push mode of material flow. 43 In contrast, the pull system has a single instruction point in the system. This single instruction point, which can initiate both pull and stream modes of material flow, has an important role in system performance since it is the only point in the entire system at which customer demand information is communicated. This point is called the pacemaker element, because how production is controlled at this element sets the pace for all the upstream processes [Rother and Shook, 1998], as shown in Figure 4-6. From that point in the system, the demand information is issued to upstream elements based on actual downstream consumption, following the direction opposite to that of the material flow. Hence, the control information is self-compensated against variation amplification at every stage of production. Kanban is a tool commonly used with pull systems. It authorizes the release of work based on system status, therefore, it controls WIP and inventory levels and observes throughput [Hopp and Spearman, 1996]. a) PROCESS 1 pull pull pull ASSEMLY PROCESS 3 PROCESS 2 -- b) pull PROCESS 1 -- CUTOMRS pull pull ASSEMBLY PROCESS 3 PROCESS 2 CUSTOMERS c) pull PROCESS 1 ASSEMBLY PROCESS 3 PROCESS 2 ] FIFO, -FIFO+ USTMER Figure 4-6. Different locations for pacemaker element and resulting control policies in a linked-cell system: a) pure pull, b) sequenced pull, c) CONWIP, (adapted from [Rother and Shook, 1998]). 44 Because the location of the pacemaker element determines the pattern of information flow in the factory, it also sets the control policy in the system, such as pure pull, sequenced pull or CONWIP [Rother and Shook, 1998] summarized below. Pure pull control policy, Figure 4-6(a), locates the pacemaker element at the last stage of the value stream, the finished goods inventory. This location of the pacemaker makes all upstream processes to work to replenish actual consumption by implementing build-to-stock inventory strategy. Customer lead time becomes the time it takes to withdraw and transport material from the finished goods inventory. This control policy causes the material to flow according to the pull mechanism. When holding finished goods inventory becomes impractical, possibly due to a high number or variations or large parts used infrequently, the sequenced pull could be a better control policy [Rother and Shook, 1998]. Instead of holding the parts in the supermarket, the pacemaker element (still at the end of the value stream) is instructed to make the parts to order under ATO inventory strategy, Figure 4-6(b). This policy is feasible only if the supplying process's lead-time is fast enough, as it will become part of the overall customer lead time. Under this policy the material flows in both pull and stream flow modes, as shown in Figure 4-6(b). Another approach is locating the pacemaker element further upstream. The resulting control policy is called CONWIP [Hopp and Spearman, 1996]. From the chosen pacemaker element, the material flows in a FIFO sequence in the stream mode, limiting inventory between downstream processes, Figure 4-6(c). The location of the pacemaker element will determine the elements of the value stream that become part of the lead time of the system. This policy requires a perfect quality yield from the processes downstream from the pacemaker, or a system dealing with the quality problems by providing feedback information to achieve right quantity in order to keep the FIFO sequence. Otherwise, quality problems will result in unmet customer demand. 45 Although the effects of control policies have been studied extensively [Bonvik, 1996], the choices for material withdrawal, the factors for its implementation and the impact of various conveyance methods on the overall behavior of the manufacturing system seem to have gotten less attention. The material withdrawal refers to the exact location of the instruction point within the selected pacemaker element and how the information is translated into material flow. Chapter 5 discusses withdrawal and replenishment methods in a linked-cell system. 46 5 Conveyance Methods in LinkedCell Systems A linked-cell system consists of multiple production units linked through local information and material flow connections, Figure 4-6. Execution of those local connections is referred to as conveyance. The goal of conveyance is to move the material between production units or their storage market places and to transmit relevant production information. Those local connections exist under various control policies in linked-cell system (pure pull, sequential pull and CONWIP), as discussed in the previous chapter. 5.1 Conveyance: Withdrawal, Replenishment Conveyance is the action of transmitting something between two elements - the origin and the destination. In manufacturing, the entity being transmitted can be material or information whereas the origin and destination elements can be either production units or inventory market places, as Figure 5-1 shows. As discussed in Section 3.3, information and material flow paces production, thus preventing overproduction and allowing quick reaction to problems, thus counteracting underproduction. This controllability of production elements, i.e. monitoring the performance in terms of ahead/behind status and quick reaction to solving problems, is made possible by the feedback loop created by coupling the material and information flow between two given elements of a manufacturing system. This coupling is embodied in conveyance itself. 47 info PROCESS 1 material Do Pickp material transport Withdrawal Conveyance f Replenishment Figure 5-1. Conveyance loop: withdrawal from origin and replenishment at the destination. The main goal of the conveyance system is a frequent and cost-effective movement of material and transmission of information [Monden, 1998]. The more frequent the conveyance, the tighter control over production, with the optimal being a single piece conveyance. However, these two objectives: increased frequency and cost effectiveness, can be conflicting if increasing frequency requires additional resources. Therefore, the preferred approach to increasing frequency is to shorten the conveyance time itself and thus release the resources to perform more frequent conveyance. Another tactic for achieving frequent conveyance is use of mixed loading, where instead of infrequent deliveries from each supplier, more frequent joined supplier deliveries are practiced. The shortening of the conveyance time is also important to shortening production lead time, especially because conveyance is a non value adding task required in the production process. When single piece conveyance is still not achievable, a less frequent "batch" conveyance is necessary. A commonly chosen conveyance frequency within a given facility is one hour [Monden, 1998]. The action of conveyance consists of three stages shown in Figure 5-1. First, the entity transmitted must be picked up from an element, its origin, then it is transported between the elements, and finally it is dropped off at the destination element. However, it is important to note that since the conveyance of material and information, which flow in opposite 48 directions, is often done in a loop by the one person, the drop-off point for the material is also the origin of the information and the destination point for the information is also the origin of the material for the given loop. In fact, the information conveyed in the loop is often the instruction as to what material needs to be picked up at the upstream element. Therefore, in a linked-cell system the pick-up of the material (and drop-off of the information) is referred to as withdrawal and the drop-off of material (and pick up of information) is referred to as replenishment. Under a control policy such as CONWIP local information connections not always exist, see Figure 4-6. In this case the given conveyance loop will transport material based on what is available in FIFO sequence at the origin. However, there is still information that can be conveyed: for example, the loop can be used to monitor the production status of the upstream process and communicate developing problems, as discussed earlier. Withdrawal loop Replenishment loop info info PROCESS material Figure 5-2. maerial Conveyance loops as seen from the particular element: upstream loop replenishment, downstream loop - withdrawal. As described above, each conveyance loop performs withdrawal (pick-up of material at the origin) as well as replenishment (drop-off of material at the destination). However, when looking at a particular production element, such as a manufacturing cell, its upstream conveyance loop can be labeled as replenishment (delivery of necessary material) and its downstream conveyance loop as withdrawal (removal of finished parts), see Figure 5-2. This definition of replenishment and withdrawal is mostly used in this work, whereas conveyance 49 refers to both actions of replenishment and withdrawal performed at the given loop between two elements. 5.2 Kanban as a Tool Kanban is a tool used in linked-cell systems to facilitate information flow under various control policies. The principle behind the kanban system is to provide a direct and standardized connection between elements that will prevent ambiguity in its outcome resulting in a binary yes/no connection [Spear and Bowen, 1999]. This connection requires conveyance of both the product and the information. The kanban system unambiguously initiates release and production of parts, i.e. withdrawal and replenishment of parts. 5.2.1 Types of Kanban Kanbans are essentially cards attached to part containers. They specify the part type, quantity, destination and origin locations for the container with parts. Since the kanbans perform many functions, there are many variations of kanbans. The most general classification of kanban types is shown in Figure 5-3. Material withdrawal kanbans are used to authorize pickup of material and initiate the conveyance of material. The kanban card specifies what parts are needed, how many should be transported, where they should be picked up from and where they should be delivered. Production authorization kanban, on the other hand, signals to initiate production and thus constitutes information flow between production elements. This kanban card specifies what part type is required, how many parts are asked for, where the request is coming from (the local customer for the parts) and to which manufacturing unit the information is going (the supplier for the parts). The withdrawal kanban and production kanban are used for conveyance of material and information for discrete parts in a relatively small container, or production run size. This allows frequent conveyance of small quantities of material. For processes that require large lot production, such as stamping press, material requisition and signal kanbans are used as equivalent in function to withdrawal and production kanbans, respectively. The signal kanban aggregates requests from individual production kanbans and authorizes production 50 when the required lot size is reached. Material requisition kanban is then used to request material for the production of the entire run size. Kanban Function Material Withdrawal Production Authorization Withdrawal Kanban -4 D Production Kanban Supplier Kanban Material Requisition Kanban Signal Kanban Figure 5-3. Classification of kanban types based on its function and production lot size. Other types of commonly used kanbans include supplier kanban, express kanban, emergency kanban, through kanban, and job-order kanban [Monden, 1998]. Supplier kanban is a type of a withdrawal kanban tailored to use of obtaining component parts from the suppliers. In addition to the information every withdrawal kanban contains, the supplier kanban also specifies the frequency of supplier delivery as well as the information that allows accounting transactions to take place between supplier and the customer. Express kanban is used to notify of unexpected shortage of a component and to prioritize its production, whereas emergency kanban schedules production to make up defective units or unexpected down time. Both express and emergency kanbans are one-time cards, which need to be removed from the system after their use. When local information flow is not present, such as under CONWIP control policy, a through kanban is used to identify the parts and specify their movement between processes, restricting amount of WIP present by keeping it constant. Finally, job-order kanban is used to schedule and authorize non-repetitive production or services usually in support of production, such as tool or fixture procurement. 51 5.2.2 Kanban Systems In normal circumstances, the flow of withdrawal and production kanbans is sufficient to fully authorize and control production of the system. Such kanban system is called a two-kanban system and it is shown schematically in Figure 5-4. It consists of two conveyance loops: withdrawal loop (marked by W), which uses withdrawal kanbans and replenishment loop (marked by R), which uses production kanbans. Replenishment loop Pro tion ordering post Withdrawal loop Coll eting post With rawal I post PROCESS PROCESS Figure 5-4. Movement of kanbans in the two kanban system: - - o production kanban, - . * withdrawal kanban. The withdrawal kanbans are collected from the downstream production unit in a withdrawal post, shown in Figure 5-4, step W1. They are picked up by the conveyance person in the withdrawal loop and are taken to the component market, W2. At the market, the appropriate containers, as specified by the withdrawal kanbans, are acquired and the production kanbans attached to them are removed and placed in the collecting post. The withdrawal kanbans are then attached to the containers, W3, which are then transported to the next production unit, W4. At the production unit, as the parts from these containers are used up, the withdrawal kanbans are removed from them and placed in the withdrawal post, W1, to complete their cycle. The production kanbans accumulating at the collecting post at the component market, R1, are picked up and brought to the upstream production unit, R2. There, they are placed in the 52 production ordering post from which they are moved at a frequency set by a pace to the production line to initiate the production, R3. As the production of the required parts is completed, the production kanbans are attached to the appropriate containers, R4. The containers are then taken to the downstream component market and placed there, R5, thus completing the cycle of production kanbans. The separation of the production kanbans from withdrawal kanbans allows autonomy of replenishment and withdrawal loops, with the inventory market usually under the administration of the production unit supplying it, the upstream unit. Each set of kanban cards, production and withdrawal, can be managed separately, by defining the route, frequency of the conveyance cycle as well as number of cards in the system. However, when the production processes are a short distance from each other and they are under jurisdiction of the same supervisor, a common kanban system can be used, thus simplifying the management by the use of one set of cards, instead of two. In the common kanban system, although there are still two separate conveyance loops of replenishment and withdrawal, the same kanban is used for both of those actions. As shown in Figure 5-4, kanbans are collected from the downstream production unit in a withdrawal post, Wi. They are picked up by the conveyance person in the withdrawal loop and are taken to the component market, W2. At the market, the appropriate containers, as specified by the kanbans, are acquired and the kanbans brought are placed in the collecting post, Rl, where they are picked up and brought to the upstream production unit by the replenishment person, R2. There, as in the two-kanban system, they are placed in the production ordering post from which they are moved at a pace to the line itself to initiate production, R3. As production of the required parts is completed, kanbans are attached to the appropriate containers, R4, which are then taken to the downstream component market, R5. From the market they are picked up by the withdrawal loop conveyance person, W3, and are then transported to the following production unit, W4. At the production unit, as the parts from these containers are used up, the kanbans are removed from them and placed in the withdrawal post, Wi, to complete their cycle. 53 In this common kanban system, since only one type of kanban card is used at any time, the containers themselves can be used as kanbans, provided that they unambiguously specify all necessary information, such as the part type, quantity, origin and destination location. An empty container then signifies a production order, whereas a full container initiates material delivery. 5.2.3 Specifications ofKanban Systems The kanban system is an information system, which harmoniously controls the production quantities in every process and manages the Just-In-Time (JIT) production method [Monden, 1998]. The system operates by circulation of cards described in previous section, which authorize conveyance of both material and information, thus pacing and controlling production. The kanban system performs multiple functions in the manufacturing system [Monden, 1998]: " Instruction m Self-control " Visual control " Improvement " Reduction of managerial costs Those functions are discussed hereafter. The flow of kanbans is the means of communication between various production elements and instruction for the entire system at a local/micro level, through direct connections between subsequent production units, as well as at a macro level, through the single instruction point. The kanban cards provide instruction for production by specifying the part type and quantity requested by the customer. The kanbans also instruct conveyance by specifying where the parts are picked up and where they need to be delivered. The circulation of kanbans in the system also provides a self-control function for the system. By having a closed loop of kanban flow, the number of kanban cards in the system can be controlled and kept constant. This automatically controls the amount of inventory in the 54 system and prevents overproduction. Also, since the system has a single instruction point, it is able to respond quickly to demand changes in a self-controlled manner. In fact, the kanban system is capable of handling ±10% fluctuations in demand volume, so called fine-tuning of production [Monden, 1998]. More significant demand changes usually require an alteration in the number of kanbans, which can be performed less frequently. The kanban system also provides visual control of production levels and inventory counts. Since each kanban card represents a container, the constant number of cards in circulation allows easy and visual control of the production status. An accumulation of cards signals problems, which can be quickly detected and counteracted. Because the kanban system is a decentralized control system, the characteristic of being visual makes it transparent, which is especially essential at the interface between local units, for example at the component market place between the replenishment loop in its upstream unit and withdrawal loop in its downstream unit. The kanban system also serves to improve the process and manual operations. The close control of production status through frequent conveyance of information in the kanban system communicates problems quickly and allows the focus of additional resources to overcome the obstacles. By increasing the frequency of conveyance, the instruction interval for production and conveyance is greatly reduced at the same time, striving toward one piece production and conveyance, which leads to true single piece flow of material as well as information. Finally, the single instruction point and the self-controlling property of the kanban system allows for reduction of managerial costs. The kanban system, although requiring rigor in its implementation, is simple to use. The role of the scheduler is greatly simplified, compared to a conventional central control system; here, only one point needs to be informed of customer demand and the demand information will propagate through the system via the kanban flow. 55 The implementation of the kanban system requires specifications of certain parameters to completely characterize the operation of this production control system. Table 2 lists some of those design factors. Table 2. Kanban System Operation Design Factors [Berkley, 1992]. 1. Kanban numbers 2. Container processing (run) time distributions 3. Setup time distributions 4. Finished-goods demand 5. Supply of purchased raw material 6. Line configuration/Part routings 7. Station blocking mechanism 8. Number of part types 9. Part yields 10. Part container size 11. Batch sizes (in containers) 12. Station container sequencing rule 13. Number of machines per station 14. Machine reliability 15. Worker flexibility 16. Worker assignment rule 17. Material handling trigger 18. Material handling frequency 19. Number of part-carriers 20. Availability of part-carriers/Part-carrier assignment rule 21. Part-carrier capacity 22. Material-handling operation time distribution 23. Material-handling operation blocking mechanism 24. Material-handling operation container sequencing rule By defining these parameters, the kanban system can be designed and implemented. However, in order for it to perform satisfactorily, diligence is required. The following application rules of a kanban system [Monden, 1998] depict this diligence: A process should withdraw the necessary products from the preceding process in the necessary quantities at the correct time. This rule is necessary to prevent ambiguity in the connection, as mentioned at the beginning of Section 5.2. For this purpose the kanban card explicitly specifies the part type, quantity and location (both of origin and destination). This 56 rule also requires that people performing the conveyance follow these instructions on the card and their designated routes. The preceding process should produce its products in quantities withdrawn by the subsequent process. This rule, similar to the previous one, is necessary to prevent ambiguity in the connection. It specifies that production should only be initiated in response to receiving a production instruction for a specific part type and only the requested number of parts should be produced, as specified by the received production kanban. Defective products should never be passed to the next process. Otherwise, a shortage of parts will be created downstream or defective product will be produced, resulting in costly scrap or rework. This rule complements the previous two in preventing ambiguity in the connections between production units. If a request for a given quantity of parts is sent, it signifies the exact quantity of good parts that should be conveyed. The number of kanbans should be minimized. Since the number of kanbans determines the size of the inventory held, the reduction in the number of kanban will yield cost reductions. Although the number of kanbans is calculated according to specific formulas based on customer demand (described in Section 5.3.3), the line supervisor makes the final decision on how many kanbans should be circulating, based on the knowledge of process capability of the given area. Too small number of kanbans will lead to delivery shortages, whereas an excessive number of kanbans will create inventory build up, material stagnation and slack in the conveyance. Kanbans should be used to adapt to small fluctuations in the demand (fine-tuning of production). The self-control characteristic of the kanban system, therefore, apart from managing the fluctuations in demand, should be used to detect problems with purpose of resolving them, rather than their concealment. The system does need to be designed with robustness against defects; this, however, should be done through error-proofing devices, called poka-yoke, as well as express or emergency kanbans rather than compensation for defects through delivery of extra parts. The kanban system is also capable of managing 57 delivery of parts that have by nature unstable usage, such as weights used to balance irregularities in shaft rotation. The actual quantity of parts contained in a box or packed in a load must be equal to the quantity written on the kanban. This rule complements rule 1 in preventing ambiguity. Since the kanban card explicitly specifies part quantity, each container for the given part type should contain a constant quantity and no partially filled containers are allowed. The essence of the above rules specifies the connection between production elements in a direct and standardized manner and prevents ambiguity, thus providing a binary yes/no connection in material and information flow. Adherence to these rules will ensure proper performance of the kanban system to its full advantage, thus providing a complete production control system. 5.3 Conveyance Methods The conveyance between production elements and their market places, i.e. the replenishment of used parts with parts withdrawn from the previous element, is critical to the performance of the system as it executes material and information flow between them and provides instruction for production throughout the system. The conveyance frequency determines the management time frame for the system, i.e. the interval at which the performance can be monitored and, if necessary, adjusted [Rother and Shook, 1998]. 5.3.1 Mechanism of Conveyance The execution of both withdrawal and replenishment is shown schematically in Figure 5-4. The withdrawal loop starts at the withdrawal post, from which the conveyance person performing the loop picks up accumulated kanban cards, Wi. The cards together with empty containers, if applicable, are then taken to the upstream component market, W2, from which the required parts are withdrawn and empty containers dropped off, W3, and at the same time information to replenish them is sent upstream, Ri. The withdrawn parts are then taken to the line requesting them, W3. The conveyance person then proceeds to the withdrawal post, Wi, and continues another cycle of the withdrawal loop. One conveyance person usually 58 performs this entire loop, provided that the distance between the production element and the market place is sufficiently short to allow for frequent conveyance. However, a withdrawal in a given loop can be done for multiple types of components and the same conveyance person can stop at multiple market places or even service multiple lines during a complete cycle, as long as the loop route can be standardized. The replenishment is initiated with the withdrawal of the parts from the component market described above, W3, and the request to replenish them. This request signal is manifested by cards accumulated in the collecting post, Ri, where the replenishment loop starts. Here the cards are picked up and sequenced in the production ordering post, R2 from which they are delivered in a specified interval (production ordering pitch) to the line, R3. At the end of the line, the parts can then be picked up, R4 and delivered to the market place. The pickup of parts is usually accompanied by delivery of empty containers to store produced parts. In order to ensure constant WIP within the given production unit as well as monitor its production status to prevent unexpected delays in production, the pickup of parts should be done in terms of equal exchange of empty containers with full ones. Also, the interval at which the withdrawal of parts from the production unit is performed (retrieval pitch) should be equal to the production ordering pitch. This sometimes is reinforced by the above mentioned equal exchange of empty and full containers, where an empty container is an additional authorization to produce parts and its absence stops further production and thus prevents overproduction. It is important to mention that the market place is usually under the jurisdiction of its immediate supplier and is therefore placed close to it. This allows for an easy visual control and a sense of ownership, which helps promote process improvements leading to inventory reduction. Because of the market location close to the supplying production unit, usually the replenishment loop for the market is much shorter and thus a more frequent monitoring of the production is possible. The withdrawal loop, however, is longer, which often advocates withdrawals of multiple parts in a single route (mixed loading). 59 5.3.2 PacemakerElement Withdrawal An important element of a linked manufacturing system is a consistent, level production scheduling of small quantities of work, called paced withdrawal [Rother and Shook, 1998], which allows for frequent and regular monitoring the performance of the entire system to customer demand. The pacemaker element of the system - the single instruction point in the linked-cell system - receives the demand information and propagates it upstream through the local connections between the elements. Thus, the pacemaker element sets the pace for production in the entire system. The pacemaker element receives leveled demand information through paced withdrawal. Thus, the withdrawal loop for the pacemaker element is crucial for the performance of the entire system. A tool used by some companies to implement level schedules in mix and volume is called a heijunka box [Cochran, 1998], shown in Figure 5-5. The heijunka also serves to instruct the paced withdrawal of material at a given frequency as defined by the withdrawal pitch. Figure 5-5. Heijunka: tool for leveled scheduling and paced withdrawal. 60 SHIPPING PACEMAKER ELEMENT Figure 5-6. Paced withdrawal loop from heijunka to pacemaker element. A withdrawal mechanism is shown in Figure 5-6. The paced withdrawal loop starts at the heijunka box (1), from which the conveyance person performing the loop picks up the kanban cards for the given pitch interval. The heijunka determines the frequency of conveyance, as specified by the withdrawal pitch, the quantity conveyed, and the sequence of the production during the next pitch interval. The remainder of the loop follows similarly to any withdrawal loop from a production element (or replenishment to a market place as described in Section 5.3.1) allowing replenishment of the parts market. 5.3.3 Types of Conveyance Methods In order to manage minor ( 10%) fluctuations in demand, the withdrawal and replenishment systems cannot be over-constrained; the conveyance frequency and the quantity conveyed in each cycle cannot stay the same when the demand changes. This is a necessary characteristic for production fine-tuning in the kanban system. Therefore, two general types of conveyance methods are commonly used [Monden, 1998]: " Constant cycle (non-constant quantity) - Constant quantity (non-constant cycle) In the constant cycle conveyance, the withdrawal or replenishment loop is performed always at the same frequency, for example, once every hour. Depending on the demand, however, a different number of kanbans will be picked up at the kanban post (W1, Ri, R2 in Figure 5-4), resulting in conveyance of non-constant quantity (although always in accordance with the number of cards picked up). This method is especially applicable when a single conveyance 61 loop services various production units. With constant cycle conveyance, when demand fluctuation causes the production rate of one of the units to change, the number of the cards picked up and quantity of parts conveyed every cycle will change, but the other units will not be affected. Constant cycle conveyance is also required for parts with unstable usage, as described in Section 5.2.3, which by nature have a varying quantity of consumption and therefore conveyance. In constant quantity conveyance, on the other hand, the conveyance will occur when a predetermined quantity of parts is requested and thus when a predetermined number of kanbans is collected. However, depending on the demand, the frequency with which the conveyance takes place will change. This method is especially applicable if the conveyance loop services a single production unit but many market places. If the production rate changes due to demand fluctuations, the same quantity can still be conveyed but the frequency will change based on the production rate change. This method, however, requires continuous monitoring of inventory or number of collected kanbans, since the conveyance is initiated when a specified number is reached. The number of kanban required in the system in the constant cycle conveyance is given by formula [Monden, 1998]: Total Number of Kanbans = Dx(LT+CC+SP) CD and for the constant quantity conveyance is given by formula: Total Number of Kanbans = Dx(LT+SP) CD where D is the average daily demand, LT is the lead time, CC is a conveyance cycle or interval, SP is a safety factor, and CD is container density or capacity. Lead time, LT is defined as: LT = (processing + waiting + conveyance + kanban collecting) time. The difference between these two formulas is the inclusion of the conveyance interval in the calculation of number of kanbans for the constant cycle method, which will increase the number of kanbans required for this method relative to the constant quantity method. The reason for this difference is that whereas in the constant quantity method, as soon as the parts 62 are used, their replenishment is initiated, in the constant cycle method, the request has to wait up to a full conveyance interval before being picked up and fulfilled. For example if the average daily demand is D = 60000 pcs./day, LT = (processing + waiting + conveyance + kanban collecting) time = 3h + 0.5h + lh + 0.5h = 5h, and CD = 10 pcs., with SP = 3h, total number of kanbans for the constant quantity conveyance method = 2000, and for the constant cycle conveyance method with CC = lh, total number of kanbans = 2250. The final number of kanbans, although based on the above formulas and calculated as shown in the example above, is subject to change by the supervisor [Monden, 1998]. Those adjustments are usually done through changing of safety factor, SP, which allows increase in the number of kanbans depending on process capability. 5.3.4 Examples of Withdrawal Systems The conveyance method - constant cycle vs. constant quantity - specifies the mechanism by which the system adjusts to the changes in customer demand: either by varying the quantity conveyed or varying the conveyance frequency. However, how the replenishment and withdrawal is actually performed also depends on other issues, such as local inventory strategy and the control policy adopted. Figure 5-7 shows various examples of conveyance loops. Figure 5-7(a) depicts a system similar to the one discussed in Section 5.3.1 and presented in Figure 5-4. This system operates under pure pull control policy with build-to-stock (BTS) inventory policy. Figure 5-7(b) represents conveyance under sequential pull, where the inventory strategy is build-toorder, BTO. Figure 5-7(c) shows CONWIP control policy with BTO inventory strategy. All the above mentioned conveyance routes can be performed using either of the two conveyance methods described in Section 5.3.3, either constant cycle or constant quantity. Also, it is interesting to note, that customer lead time is different in each case, and is determined by the length of the conveyance loop itself and, in case of sequential pull and CONWIP control policies, also by the processing time which is included in the route. 63 PRCS SHIPPING PROCESS SHIPPING PROCESS SHIPPING b)PROCESS PROCESS - Figure 5-7. FIFO -- Various conveyance loops: a) pure pull/BTS, b) sequential pull/ATO, c) CONWIP/BTO. Two commonly used withdrawal systems are later replenishment withdrawal and sequenced withdrawal [Monden, 1998]. The later replenishment system operates under the BTS inventory strategy, where the components are stored in a market place (as in Figure 5-7(a)) and then withdrawn based on a constant cycle withdrawal loop. The components specified by the withdrawal kanbans brought from the local customer by the conveyance person will be delivered to this customer just one cycle later, when the conveyance person finishes the loop. The market place from which the parts were withdrawn will be replenished later, after the production ordering kanbans make their loop. Due to the necessity for inventory in the market place under this system, it is usually used for small components with few varieties. 64 When the size of inventory required in a market becomes an issue, making it infeasible to implement BTS strategy, the sequenced withdrawal system is used. This system performs under the constant quantity conveyance method and is usually used for components such as engines or transmissions in the automotive industry [Monden, 1998] - large parts with many variations. This system works under BTO strategy, as shown in Figure 5-7(b), (c). The kanban cards are taken to the supplying production element; however, the corresponding components are not brought back until a few conveyance cycles later, when the production of those components is completed. This system avoids costly inventory, however it requires that production lead time of the supplying production element is sufficiently short to supply the parts on time. Another way to shorten the response time in this system is by sending the requirements instantaneously via fax or electronically, so that the kanban conveyance time of information between customer and supplier is shortened. This system, however, also requires that from the moment the withdrawal loop is initiated, the production sequence of the customer cannot change and thus the production sequence at the supplier does not have to be readjusted. 65 66 6 Case Study The case study project for this work took place at Visteon Automotive Systems in Monroe, Michigan. Monroe plant is a facility of 1.5 million ft2 employing around 2200 workers with a strong unions presence. It supplies various automotive components to 47 different customers. The main product areas are steel wheels, coil springs, stabilizer bars, catalytic converters, body components and hot stampings, with an annual production of 38 million components. The manufacturing system studied is a production line for catalytic converters for over 8500 F-series and Econoline trucks, supplying multiple customer plants. The product, shown in Figure 6-1, weights up to 30 lb and is up to 5 ft long. It comes in 20 varieties and consists of up to 11 different components. Some of those components are common to all types of converters (mat mount and seal), some are complementary and not required on all types of converters (hanger rod, upper shield), and the rest come in different varieties (three varieties of inlet pipe, eight varieties of outlet pipe, five varieties of catalyst, etc.). The components are delivered by various external suppliers, from few times daily to once a month, and a single internal supplier twice a week. The planned annual production volume for the line in 1998 was 350000 parts. The parts are supplied to two main customers and few other customers on less regular basis. The line produces components for current model cars - amounting to 91% of the total production, as well as parts for service - 9% of the production. 67 MAT MOUNT (3) AIRADATERCATALIST (3) UPPER SHIELD (6 UPPER SHELL INLET PIPE ID PLATE L[E SELOUTLET PIPE LOWER SHIELD Figure 6-1. Catalytic converter - product considered in the study and its major components. This chapter describes the initial production system (circa June 1998), the redesigned system, as well as the transition state in the implementation (circa August 1999), with focus on the information system. 6.1 Initial System The initial manufacturing system is illustrated in Figure 6-2. It shows information and material flows between all elements that participate in the manufacturing process, from the moment the raw material enters the plant from the suppliers to the moment the finished converters leave the plant to be delivered to the customers - for the entire value stream. The initial system consists of seven major elements: shipping, central scheduling, assembly line, sub-assembly station, piercing operation, stamping press and purchasing department. The material flow in the initial system is under a push mode, with a central production control system (Figure 6-2: 4) that sends out information on what and when to produce. The system has multiple instruction points; the control information is sent separately to different stages in the material flow. Because of this, the different stages of the value stream are only linked through the central production control system and scheduling. The material and information flows between the various stages in the value stream are decoupled not only 68 through the information system but also through the use of a central hi-density inventory (Figure 6-2: 11) where parts and components in various production stages are being stored. y~)4 SU -productio I SUPPPLIERS CENTRAL SCHEDULING PURCHASING PRODUCTION CONTROL weekly ad daiy nsc ltle s ( monthly and weekl production plan 5~ ASSEMBLY CUSTOMERS G ASSEMBLY SHIPPING 2 daily Staging STAMPING PIERCING Figure 6-2. The initial manufacturing system at the facility level: information and material flow [Br6te, et al. 1999]. 6.1.1 Information Flow - the InitialSystem Starting at the customer's side of the value stream, the customer sends its one-year forecast schedule, one-month firm schedule, and its final one-week schedule for all products needed to the central control system (Figure 6-2: 1). This information is sent to the plant - to its scheduling and shipping departments. The one-year forecast is used for capacity planning for the line at the tactical level. The one-month firm schedule and final one-week schedule are used to schedule the production and introduce last minute changes to the schedule at the operational decision making level. The shipping department uses the customer demand information to schedule its shipping windows, i.e. what and when to ship (Figure 6-2: 2). The shipping department pulls the products to ship from the finished goods inventory or in some cases ship whatever is on hand, in a push mode. In emergencies, when product is not ready, the shipping department 69 contacts the scheduling department (Figure 6-2: 3) to determine the status of the parts and to let them know how many parts are needed. The scheduling department receives the same information from the customer as the shipping department. The scheduling department compares the release of the customer demand for the given week with the balance on hand (BOH) - the finished goods inventory - for all different products (Figure 6-2: 4). Based on differences between the customer release and the BOH, production in the required production areas is scheduled for the entire week. The scheduling department manually distributes the weekly schedule to the managers of the various production areas (Figure 6-2: 5). The area managers are responsible for adjusting the production schedule to react to line downtime (Figure 6-2: 7,8,9,10) caused by such problems as component shortage, machine failures, or workers absenteeism. At the end of each day, the scheduling department is informed of the on-time status of the production areas, enabling the scheduling department to further adjust the schedule and plan for overtime. The scheduling department is also responsible for scheduling the production or purchase of necessary components based on the one-month customer schedule (Figure 6-2: 6). The monthly component demands are calculated by breaking the customer monthly demand into its components. If the balance on hand for a component is less than the monthly demand or if the BOH reaches its required minimum level, production will be scheduled or the purchasing department will be informed to purchase more parts. The same system is used for the scheduling of the purchase of raw material. For the press area (Figure 6-2: 10) the scheduling department determines and informs the purchasing department as to how many, how large and when the new steel coils are needed. Because of the system of infrequent ordering and a minimum level of BOH triggering the scheduling department to schedule production and inform the purchasing department, the purchase of components is only vaguely coupled to actual usage of components. Since the production of components is not scheduled based on the actual usage, all manufacturing areas have to be scheduled separately and lack predictability - thus often leading to component unavailability. 6.1.2 MaterialFlow - the InitialSystem The material flow for the value stream selected for the study is described below, starting downstream, with the customers. The finished goods are shipped to each customer once a 70 day. As described in the previous section, the shipping department pulls the products to ship from the finished goods inventory (Figure 6-2: 2). The assembly line (Figure 6-2: 7) delivers its finished goods, in containers holding between 76 and 98 parts, to the finished goods inventory where they are stored until the next shipping window. The container size varies for different finished goods parts, with the result that it cannot serve as a standard production unit. This inconsistent pack size creates several problems with material flow in the plant. First, it introduces inconsistency of throughput time into the system, since each container might take a different production lead time. This causes unpredictable intervals between container deliveries among the elements of the system downstream from the assembly cells, including the customer. Second, each part type has a different pack quantity requiring a different pitch, or time interval between production signals. Because of the central scheduling system, the important link between information and material flow is lost throughout most of the value stream in the plant. Without constant pack quantities across all finished goods, standards for pack quantities for purchased parts and parts supplied in-house cannot be established. Thus, creating a pull system using tools such as kanban is difficult. TIPUP P UP Material flow WIP accumulation Figure 6-3. The initial assembly line layout. 71 The assembly line (Figure 6-2: 7) operates at two shifts a day, five days a week. Based on the demanded volumes from the customers, the line has to produce 90 parts an hour, or at a takt time of 40 seconds. Since the line is designed for mass production and 90 parts an hour is close to the maximum production rate of the line, each operator is tied to one machine making the line inflexible to volume changes. The line layout, presented in Figure 6-3, shows that the material flow through the line is complicated and difficult to follow making defect detection and tracking difficult. Since each machine in the assembly line has a different cycle time (ranging from 5 to 40 seconds) and the assembly line has not been balanced to a specific takt-time, there is a substantial amount of work-in-process (WIP) between the stations that decouples the demand from one station to another. Conveyors holding WIP parts between several of the stations prevent reinforcing the principles of first-in-first-out (FIFO) which together with high WIP levels makes it difficult to detect and prevent production of defects at their source, even though the production runs with a batch size of one piece. Since there are 20 variations of the final product, with different components and variations of components between them, there are multiple decision points in the manufacturing process, which determine final product type and where the information has to be delivered. Production instruction is partly controlled through changeovers, where the new parts to be used are brought to the line and the parts not to be used are taken away. Since there is no common container quantity for the components, which vary in number between 250 and 1700, the parts taken away from the line are stored as partials. Most of the parts and components being used are purchased parts, which upon delivery from the suppliers are stored in hi-density storage (Figure 6-2: 11). The other components being used come from sub-assembly (Figure 6-2: 8) and from stamping/piercing operations (Figure 6-2: 9,10). The sub-assembly station (Figure 6-2: 8) consists only of manual operations, but due to the operating mode, it runs and produces the required quantity on a one-shift-per-day pattern. The sub-assembly station is scheduled separately from the assembly line and has its own local part-inventory for components and finished sub-assemblies (Figure 6-2: 12). Because 72 some of the components used in subassembly are easily damaged, the multiple transportation and storage creates many quality problems. The stamped parts used in the assembly line are brought from hi-density inventory (Figure 6-2: 11). The stamping area runs stampings twice a week (Figure 6-2: 10), limiting the inventory level to a half-week's demand plus safety stock. Some of the parts are also required to go through a piercing operation (Figure 6-2: 9). These parts are pushed through the piercing operation prior to storing them in the hi-density storage. Besides the parts produced for the assembly line, the stamping press runs eleven other parts - all shipped to external customers, total of twelve parts. Among the other eleven parts, six are high runners (high volume production) that are produced every week. The other five parts are scheduled when needed to run either during one shift or the other in a week. The press runs at two shifts per day and five days a week, with production scheduled in a sequence that minimizes inventory. Since six of the seven high runners are produced for an external customer, the production of these parts is sequenced in such a way that the parts are shipped when produced with the schedule optimized to the shipping windows. The shipping windows for the stamped parts are Monday, Tuesday and Friday. 6.2 Redesigned System - Towards the Ideal State The initial system described in the previous section has been redesigned using the PSDD framework. The overall goal of the new design has been to reduce waste and create a manufacturing system with deterministic output, following the objective of minimizing mean delivery time and its variation, and thus making the system responsive to customer requirements. Such a system exhibits leveled production according to the actual demand as specified by takt time and is capable of volume flexibility. It also has a reduced amount of WIP, which shortens lead time. The goal is also to achieve single piece production and conveyance at all points in the system - true single piece flow throughout. The redesigned system described below is a first step towards this ideal. 73 In the newly designed linked-cell system, shown in Figure 6-4, the subassembly element (Figure 6-2: 8) has been integrated into the assembly line (Figure 6-2: 7) and thus is represented in a single unit as the assembly cells (Figure 6-4: 7). The assembly cells unit is also a pacemaker element of the system. rSUCUSTOMERS dailyy F STAMPING C ~FIFO+- Staging _ PIERCING @ Figure 6-4. Redesigned system at the facility level: information and material flow. An important enabler to the redesigned system is the establishment of a constant pack density of the finished goods, or a constant number of parts, regardless of type, in a container. A quantity of 72 has been picked as it can accommodate all part types. This constant quantity makes it possible to treat a container as a production unit with predictable production lead time, enabling implementation of a kanban system. 6.2.1 System Level - Redesigned System The information flow in the redesigned system starts with the customer. Based on the actual demand, the customer sends the demand information to the plant via kanban cards, which specify how many containers of what part type are requested (Figure 6-4: 1). This information conveyance takes place daily when the parts from the previous order are delivered (Figure 6-4: 2). 74 Therefore, the system operates under BTO strategy with no finished goods inventory. Upon their arrival in the plant, the cards are delivered to the shipping/scheduling unit, where they are sorted and deposited in the leveling box (Figure 6-4: 3). The leveling box makes it possible to schedule the ordered parts into specific time slots for the day. It has been shown that the great demand variations in the initial system were mostly caused by internal variability in production. The customer plant is designed to produce at a constant pace, incapable of frequent rebalance, meaning that the customer is steady and paced and the only way to increase production is through changing operating time. Volume fluctuations are therefore easy to predict and plan for. The demand mix - the ratio of demand for different part types - does fluctuate within a ±10% range depending on component availability from other suppliers. Therefore, with leveled scheduling and simplified value stream, the demand variations have been shown not to exceed ±10% in mix and volume. Thus, the leveling box can be established once a month, based on the monthly forecast, but actual consumption, communicated daily, is used to load the box and schedule the production, using the finetuning characteristic of a kanban system to manage minor variations. The pitch of the paced withdrawal is 1.5 hours, due to the large distance between the assembly cells unit and the shipping unit. The conveyance operates under a constant cycle method and is shown schematically in Figure 6-5. During this pitch, the conveyance person picks up the kanban cards for the next pitch interval from the box and an equivalent number of empty containers and delivers them to the assembly production unit drop off area. From there, the equivalent number of full containers is picked up and delivered back to the shipping, where they are staged waiting for delivery to the customer. The shipping staging area uses visual monitoring of the production status, based on how many containers are waiting. It is important to note that, since the conveyance person operates on a constant cycle conveyance method, more than one production unit can be serviced by the same loop in mixed loading, as shown in Figure 6-5 and thus increase efficiency of the conveyance loop. 75 Basket Staging Area Shipping ........ . ............. 3dSchedu -.lu - 36 34 Delivers information From Heijunka in Shipping - Pitch Clock h: min 1:30 To Cells Removes finished goods - 37 in Box Takes away full containers Brings empties 35 Figure 6-5. Pacemaker conveyance loop from shipping to the assembly element. The filled containers are brought to the drop off area by a forklift, one by one. The forklift can service many production units similar to the above mentioned conveyance loop, and it can operate on demand. As a line completes a container and starts to fill a new one, the forklift is informed and it picks up the full container and leaves an empty one. This dual conveyance: first by the external withdrawal loop and then by forklift and internal replenishment loop (described below) - was chosen because of the great distance between the shipping and production units. Hence the containers cannot be taken to shipping one by one and need to be taken in a train, which is done in the external conveyance loop. From the assembly production unit drop off area in Figure 6-5, the kanbans are then brought to the assembly production unit itself. Here, the kanban cards instruct the material replenisher as to what components are needed. Thus, the replenishment of material is coupled with the conveyance of customer demand. Material replenishment, therefore, provides production authorization and instructions to the workers by giving them the material necessary to produce a specific product. Since the material replenishment loop is the system's instruction point, downstream operations are performed in a stream flow mode. 76 This internal conveyance loop makes it possible to increase the conveyance frequency to the cell and thus keep tighter control of production status. Every internal pitch (usually every 15 min.), the replenishment person delivers the required components in the required quantity. This conveyance loop operates on a constant quantity method, with the same amount of material always being delivered (components necessary for 18 parts which is % of the finished goods container size), although frequency of the conveyance might vary depending on the demand variation. The constant quantity method was used because of the great variety of components and their size as compared to the available space at the cell. Due to the number of parts needed to produce all the variations of the end item, the floor space needed to hold even one container of each type would exceed the floor space available. By linking the customer order point to material replenishment and supplying material to the cell in constant quantities, only the parts that are needed will be in the cell racks. This also eliminates possible quality problems caused by operators using incorrect components. Delivering only the necessary types of components in small quantities also helps to eliminate lengthy material changeovers (initially up to 30 minutes) between different part type runs. However, in order to make the system robust against incoming material defect problems, an emergency system is required to allow replenishment of additional parts, when need. This can be done with an express kanban or an Andon display that communicates shortages and instructs redelivery of certain parts. It should be noted, however, that incoming quality problems were insignificant to begin with, compared to internal quality problems; this source of defects was eliminated through the integration of the processes and reduced WIP in the redesigned line as described later. Components delivered to the assembly cells in the internal replenishment loop are picked from a component line side market located close to the cells (Figure 6-4: 12). From that market, as the components are consumed, the withdrawal kanbans instruct suppliers to replenish them (Figure 6-4: 6). The internally procured parts (stampings) are delivered to the assembly unit from the stamping press market (Figure 6-4: 11). From this market, a signal kanban is used to schedule production when the level of a given component reaches a 77 PW MR minimum quantity. The signal kanban is sequenced together with signal kanbans for other parts that are produced in that specific press. This sequence determines the operating pattern at the press, i.e. which parts, what quantity, and in what order to produce. The sequencing board also indicates when to make changeovers, as well as when and what kinds of coils are needed. As the parts leave the press, they go through the piercing operation (Figure 6-4: 9), if required, before they are placed in the market. The steel for the stampings is obtained from the coil market using material requisition kanban. From that market, the information is sent to the supplier to replenished used coils (Figure 6-4: 8). 6.2.2 Line Level - Redesigned System The redesigned production unit layout is shown in Figure 6-6. As mentioned earlier, the subassembly production unit has been integrated with the assembly line and rearranged into a Ushaped cell configuration. The subassembly operation has been redesigned and balanced with the cycle time of the rest of the cell to equalize the production operating pattern of both of those production units. Line side component market IIc PNL E F1 F-I F-I 1-1 El F I i M-7 FIFIFT-1 Material flow Figure 6-6. The redesigned assembly cells layout. In order to design a value stream that is able to produce at the customers' demand cycle time, the cell has been designed as a linked part of the value stream with a focus on the customers' demand volumes and their variations for all parts produced within that cell [Br6te, et al. 78 1999]. Hence, the cell should enable a flow of parts at the ideal range of cycle time. Consideration has also been given to volume fluctuations; the cell must be able to operate within a range of demand fluctuations. The maximum level of expected demand puts a requirement on the minimal takt time, a time at which all machines within the cell must be able to operate. Since the product design has been held constant within the scope of the project, the machines chosen for the project must be able to meet the requirements of the existing product design, and at the same time be able to operate at the recommended minimum takt time. If the cell is to operate and adjust to different demand levels efficiently, it must be able to increase and decrease its capacity in small incremental steps. The ability to increase and decrease production capacity within the cell corresponds to the need to operate at different takt times in order to avoid the waste of overproduction. The cellular layout, together with the decoupling of operators from the machines through SWIP, enables the cell to be run at different takt times just by adding or reducing the number of operators in the cell. In this way production volumes can be increased or decreased incrementally. The decoupling of operators from the machines is done by autonomation. Autonomation is used so that the operators start the manufacturing or assembly operation by loading the machines, activate it by pushing the start button, and then walk to the next machine without waiting for the machine to finish its cycle. The machines run and often even unload themselves during the machine cycle time. This decoupling of operators from machines allows for better utilization of the operators' time. An example of autonomation in the redesigned cell is the seam welding station. After loading, the operator starts the cycle by pushing a button and walks away with the previous part to the next station. Due to existing equipment limitations, however, the seam welding machine is not equipped with the auto unload feature. Upon return, therefore, the operator has to manually unload the previous part before loading the next one. Since the machine cycle time is less than takt time, the cell is able to always run at takt time. This way the throughput time - the time it takes one part to go through all operations - is always the same and therefore predictable. One of the goals for the system and cell design is to obtain predictable output in terms of time and quality. The predictability of output requires a low scrap rate, which can be 79 obtained by visualizing the material flow and thus enables fast failure detection and quick response. Alternative material flow should be avoided so that the machines that produce the defect can be easily identified. The use of standard operation work sheets, which tell the operators what tasks to perform to achieve various takt times, also describes the work content for the different operations so that they will be performed in a consistent manner. Two independent cells were formed for reason of increased capacity requirement, Figure 6-6. Both cells have machines placed close one to another in a U-shaped configuration. The close placement of the machines not only minimizes walk time for the operators but also reduces the amount of WIP and reinforces FIFO flow in the cell. No conveyors are present between stations, only a simple slide rail, which aids the operators as they move the parts between stations, walking. The amount of incoming material is under tighter control. The parts are delivered to the line in small batches (18 parts). Material delivery is performed through flow racks from the outside of the cell so that material replenishment is non-disruptive to production and workloop pathways. The parts delivery through flow racks also improves the presentation of parts to the workers. They are easily accessible on the path between stations or at the stations themselves. Since the changeovers will be done sequentially as the new material is delivered to the cell, there is a need for a visual changeover sign to inform that a changeover is in progress [Br~te, et al. 1999]. Changeovers in this system are indicated in two ways. First, there is a changeover card highlighting changeovers to the material replenisher as the material is delivered. To instruct the operators that a changeover should take place, a wooden stick is placed between parts being used for the previous product and parts being used for the new product. In this way, the operators are given a signal to perform the changeover. The location of the line side component market directly next to the line makes the components easily accessible to the replenisher. The replenishment can be performed by a single person, servicing both cells, and the component market can be visually managed from the line. 80 6.3 Present System - Transition State PURCHASING SCHEDULING PRODUCTON CONTROL motly and weeki production plan ~p Ar ouc *ionsc ules SUPPPLIERSt =CUSTOMERS daily XOX ASEBYSHIUING -FIFO+ Staging PIERCING STAMPING Figure 6-7. Present system state at the facility level: information and material flow. The present state is a description of the system in August 1999, and is only considered to be one step in the process towards the designed system or the ideal. The implemented system is shown in Figure 6-7. This section describes the implementation status of the system by listing successfully executed elements as well as a discussion of issues that inhibited progress. Table 3 compares the performance of the system before and after initial implementation of changes. Table 3. Comparison of system performance measurements before and after initial implementation. Production volume Work in Process Inventory State of the System Before Implementation After Implementation 1600 parts per day 1600 parts per day ~1000 parts 15 parts 3 days Large and variable Floor space consumed 5000 ft' 4600 Throughput time (Dock-to-dock) Number of defects per month First time Through (no defects) Number of workers (direct/indirect) Material replenishment interval 182 hours 300 parts 26% 14/6 2 hours 92 hours 100 parts 52% 11/4 20 min. Performance Measurements ft2 81 One of the most successful implementations was reconfiguration of the assembly line and the integration of the subassembly process into the new production unit, Figure 6-6. In addition, the material flow within the production unit was examined and splitting the line into two independent cells eliminated any parallel flow, allowing failure detection and quick response to production disruption to be supported. Since there are two major customers for the products, the best way to design the cells would be to have each cell dedicated to one customer and responding to its needs. However, constrained by the equipment available and due to financial restrictions, the cells had to be divided by type of process. This required both cells to be scheduled together although the takt time for both cells is different and it is of course a limitation to the flexibility of both cells. Having two cells instead of one increases the takt time per cell since customer demand cycle time is divided between two cells. In the case of this project, the split of the line gave production rates of 72 and 21 parts an hour for each cell, respectively, equaling 90 parts per hour in total. The slower production rates longer takt time - makes it possible to run the machines at a slower machine cycle time, which may improve product quality and reduce the wear on the machines and tools. Both cells were installed using mostly existing equipment without additional investment. The close configuration of the machines reduced greatly the amount of WIP, from over 1000 pieces down to 15. This WIP reduction not only shortened the lead time of the process from hours down to minutes, but also improved detection of defects in the cell and communication among workers. The result is improved quality in terms of overall defects as well as first time through, as shown in Table 3. Overall, the reduced quantity of WIP made the production output more predictable in terms of both the quality and lead time. Predictable production resources regarding both human and machines are, of course, necessary, [Br6te, et al. 1999]. Causes of unplanned downtime should be documented and analyzed to prevent their reoccurrence. In general, solutions to downtime problems can be classified as design change, preventative maintenance scheduling or repair when down. The degree to which the system can respond quickly to downtime will greatly influence the information and material flow side of the system design and its performance. With high rates 82 of downtime, the system becomes less responsive to customer demand and both functional requirements of the system are negatively affected. The configuration of the cell, with machines placed close together and absence of conveyors between stations, allowed implementation of workloops in which some operators are able to perform more than one operation during cycle time. However, there were some limitations in the implementation. Firstly, since the cell consists of previously purchased equipment, the distance between some of the stations is larger than optimal because of the size of some of the machines. This increases the walking distance for the operators performing workloops increasing non-value-adding movement. Secondly, because of the existing restrictions in workers' task division, some operations could not be combined into a single workloop and have to be performed by different operators. This restricted implementation to some degree, preventing the full balance of the workloops in the cell. Overall, however, implementation of workloops not only enabled volume flexibility, i.e. the ability of the cell to adjust to the required production rate, but also allowed increased efficiency of the workers and required fewer operators and support staff to operate the new system. The implementation of flow racks delivering material to the cell not only reduced the incoming material WIP in the cell but also greatly improved the ergonomics of handling of the parts by operators. From the flow racks, they are easier to reach and are closer to the stations at which they are used. Since the parts are delivered in small quantities, replenishment can be performed more frequently and is non-disruptive to cell production. The line side market placed in the vicinity of the cells also made frequent replenishment possible. However, there were many limitations to its implementation. The design of the new system called for all inventory for this production unit to be placed in a single location, permitting visual management. In the vision of the future system design, the central market should be eliminated and the suppliers would deliver their products directly to the line-side market (Figure 6-4: 12). The line-side market would then be linked to the suppliers through another information/kanban loop (Figure 6-4: 6), eliminating intermediate inventories and allowing better control over the inventory levels of parts. However, due to the large initial 83 inventory size and limited space at the site of implementation, this was not carried out. Only a single container of each type of component is staged at the line side market, and as the parts are used up, a new container is brought from central inventory storage. Because of this, the inventory coming from the external suppliers is managed as in the initial system - based on the forecast of the part consumption from the central scheduling. The future development for the system is to provide links between shipping and assembly production unit, as well as continue those links with the rest of the system, such as presses and suppliers. Currently, the production authorization for both the cells and the instruction of the stamping press area are still done centrally and separately. The cells are still scheduled based on the forecast demand. Although the internal replenishment loop has been implemented, paced withdrawal has not. Therefore, the replenisher does not instruct the cell based on leveled demand. In fact, the leveling box has not been implemented. The stamping area is also scheduled separately, i.e. operates on push-production mode and the pull system using signal kanban is not yet in place. A market of stamped parts should be located near the press and conveyed to the assembly unit based on demand. 6.4 Further Development The implementation thus far of the redesigned system has brought many benefits, as shown in Table 3, such as improved quality and reduced lead time. However, much more is to be gained through implementation of the other elements as well. The biggest benefit will come from the control of purchased parts. Currently, they are placed in a central storage location, which makes it difficult to control their levels and manage them visually. They are ordered based on a forecast from central scheduling and delivered to the line side market. In fact, the purchased components are a "hidden problem". They take up floor space and require additional resources to transport them from the receiving dock to storage and from storage to the production units, often many times back and forth. This additional movement also increases the chance of creating defects. components are also costly. benefits. 84 Some of those Controlling inventory levels would bring, therefore, many However, before implementing the kanban pull system to order parts from suppliers based on actual usage, first the production of the assembly needs to be leveled [Monden, 1998]. The implementation of the leveling box and establishment of material and information connections between shipping and assembly is required. The leveled production of small run sizes of parts as well as their frequent conveyance will make it possible to reduce the incoming material inventory, as mentioned earlier. This linkage, therefore, should be the focus of immediate implementation because leveling will allow implementation of other linkages in the system. The implementation of paced withdrawal will also improve the ability of frequent monitoring of systems performance. This, in turn, will help achieve predictable output. Another key element of predictable output issue is the analysis of down time. Although the machines in assembly are serviced for maintenance, it is mostly done in a "fire-fighting" mode, giving attention to the unit only when one of the machines is down and production has stopped. Little preventive maintenance is done. A dedicated support staff for this production system would ensure better availability of resources and would allow continuity in the preventive maintenance for the system and elimination of the root causes. 85 86 7 Conclusions In manufacturing system development, in order to make the system efficient, it is important to eliminate waste throughout the entire value stream. Thus, it has been shown, based on the Production System Design Decomposition, that overall system design places important requirements on material and information flows through the system. In fact, these two flows significantly affect the performance of the system, in terms of cost, quality and response time. However, it is also important to note the interdependence of the information flow and material flow as discussed in Section 3.3. Traditionally, information flow is designed after the physical elements have been laid out and after the material flow has been established. However, some of the strategic decisions in information flow design discussed in this thesis, such as the inventory strategy, pacemaker element selection and control policies, will impact how the material flows. For example, depending on the chosen location of the instruction points in the system, certain production elements could or could not be integrated into a single unit - the information flow should influence the relative placement of the elements, depending on the kind of connections needed between them. Therefore, the design of the information flow will in fact affect the physical layout of the system and both information and material flows should be designed concurrently, at the system level. In the linked-cell system, the interdependence of the material and information flows is especially visible in the transmission of information and material between production units, or conveyance. This thesis presents various conveyance methods and discusses the circumstances in which they might be most useful. Because the conveyance is responsible 87 not only for delivery of the necessary material but also performs production control, it should be regarded as a critical part of the manufacturing system development. The role of conveyance in production control can be divided into two functions: - Authorization of production - Monitoring of performance The conveyance also provides a feedback loop, which allows taking necessary actions and maintaining controllability of the system, thus improving its performance. The frequency of this feedback loop is a critical characteristic for controllability. However, little work has been done so far to define controllability and to determine the optimal frequency of conveyance in place of a commonly used rule of thumb, one-hour conveyance [Monden, 1998]. Although this thesis listed many factors that will influence the choice of information flow and thus conveyance method used, it was not an intention to provide strict rules for conveyance method selection or design. Instead, a discussion of the requirements some of these factors place on the information flow has been provided as guidelines in decisionmaking process. The information flow design is a strategic decision, which will greatly impact the performance of the entire system. 88 4. s~e~i~n-n--.~- I.-n~eeen r~~scereie - sure n-ru- ,ccsui iii eiiu e-iuun-reru , ,u ~-i--s~ - sun-uIuKPASrn-t-,uesIusuru-rAsun-iun-n-rsisrususuuiuruin-ruiuruuW0uiruGuiisn-sun-n-Si' r4uuaiIu new Is suite. 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'MANUFACTURING SYSTEM DESIGN DECOMPOSITION domnemm opertions O MIT 2000 Generai notes: Ad xbrand siger arprom landsth putltnm Sh= matres tor higher leels DATESrlME 3/27)00 11:57 AM FIl.ENAME MSD Decomposition v5.1 with PM's.ppt OF PAGES PAGE I I References Berkley, B.J., 1992, A Review of the Kanban Production Control Research Literature, Production and Operations management, Vol. 1, No. 4, Fall 1992. ISBN 1059-1478 Black J T., The Design of the Factorywith a Future, Mc Graw-Hill, Inc., 1991. ISBN 0-07005550-5 Bonvik, A.M., 1996, Performance Analysis of Manufacturing Systems Under Hybrid control Policies. PhD Thesis, Operations Research Center, Massachusetts Institute of Technology, Cambridge, Massachusetts. 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