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LCE 2016 PROCIR-D-16-00041R1 MSM presentation v01
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AUTOMOBILE AND TRANSPORT
Using Multi-layer Stream Mapping to assess the overall efficiency
and waste of a production system:
A case study from the plywood industry
AERONAUTICS, SPACE AND
DEFENCE
E.J. Lourenço, J.P. Pereira, R. Barbosa, A. J. Baptista
António J Baptista
abaptista@inegi.up.pt
Organized by:
In cooperation with:
Sponsored by:
22nd – 24th May 2016
Page 1
AGENDA
1. Introduction
2. MSM: Its origin and development since LCE 2013
3. Multi-Layer Stream Mapping description
4. Case study definition and results
5. Conclusions and remarks
Page 2
1. Introduction
Main productivity issues of production systems:
 Productivity (output/h)
 Energy consumption
IMPROVE THE
PERFORMANCE OF
PRODUCTION SYSTEMS
 Raw material and resource consumption
 Other variables, as quality, flow
“If you can't measure it, you can't manage it”. (Peter Drucker)
The challenge: How to measure the overall efficiency / performance of a system ?
Page 3
1. Introduction
Base aims of the Multi-Layer Stream Mapping methodology (LCE 2013)
Page 4
1. Introduction
Base aims of the Multi-Layer Stream Mapping methodology (LCE 2013)
 Develop a multi-variable combined use of the Value Stream Mapping (VSM) Lean Tool
and demonstrate its suitability to assess environmental and energy efficiency of unit
processes and production systems in a flexible manner;
 Demonstrate the importance of presenting environmental issues and efficiency in a
simple manner through visual management maps and layouts for decision making and
overall awareness;
 Create an approach that is able to asses productivity, the efficiency and eco-efficiency of
a production system, since the tools and methods are not always directly applicable to
every product and/or production system, and often addressed as “isolated stage
analysis”;
 Create a very easily understandable assessment (for all level collaborators) based in fast
visual management attributes in most methods and tools used for eco-efficiency
assessments.
Page 5
2. MSM: Its origin and development since LCE 2013
List of characteristics of the MSM framework (1|2)
 Aim’s towards sustainable Value maximization and global waste reduction
Relates directly EFFICIENCY (%) << >> WASTE REDUCTION
 Wide spectrum of users utilization by its simplified analysis
Useful for analysis from the top management to the more operational worker
 Integrated / disaggregated view of information (strong and systematic data integration)
MSM Dashboards for easy to interpret information and results
 Fast identification of inefficiencies in critical or limiting process steps
Facilitated assessment of inefficient processes steps and their impact on the overall efficiency
 To relate (in)efficiency with process costs (that add value or just create waste)
Facilitated analysis of costs per process step / variable
Page 6
2. MSM: Its origin and development since LCE 2013
List of characteristics of the MSM framework (2|2)
 Capacity to easily model and to assess efficiency and cost improvement scenarios
Generation of improvement scenarios, cost reductions quantification / simple payback analysis
 Intrinsic focus on efficiency continuous improvement and its sustainability over time
Intrinsic motivation towards efficiency and continuous improvement (“lean thinking”)
 Simplified lexicon and fast visual information assessment by MSM Scorecards
Adoption of visual management, with common colours, simple units (% or €, $, etc.)
 Three types of analysis: AD INITIO
>> Greenfield designs
IN LOCO
>> Static analysis of existing production systems
IN CONTINUUM >> Online monitoring of production systems
 Ability to be easily integrated into IT Management Systems and process large amount of data
Robust base algorithm to process large amount of data into information for decision support
Page 7
3. Multi-Layer Stream Mapping description
Value Stream Mapping (VSM) with application of Lean Principles
Pillar 1: Assess Value Addition versus not adding value
Page 8
3. Multi-Layer Stream Mapping description
Pillar 1: Assess Value Addition versus not adding value
 A value stream mapping consists in the collection of all actions (that add value and
actions that do not add value) that are required to bring a product through the
main production flow, starting from the customer and ending at the raw-material
(upstream).
 The primary goal of this tool is to identify all types of waste in the value stream in
order to take actions for the waste elimination and towards value increase
Example of a common VSM of a Metalworking Industry
Transport
WTS
(input)
Coating bolt
holes
(manually)
Cleaning
WTS
2
2
2
0,75 h
VA
Production
NVA
Time (hours)
Mixing paint
(pneumatic
mixer)
2
0,50 h
2
0,50 h
0,38 h
0,17 h
Drying
primary
coat
Applying
primer coat
2
1,50 h
0,03 h
Coating
Inspection
2
3,00 h
0,20 h
0,50 h
0,15 h
0,15 h
0,06 h
0,17 h
1,13 h
0,53 h
0,70 h
1,65 h
3,15 h
0,56 h
-
66%
94%
71%
91%
95%
89%
PT
6,75 h
LT
7,89 h
WT
1,14 h
𝜑
86%
Page 9
3. Multi-Layer Stream Mapping description
Pillar 1: Assess value addition versus not adding value
 The VSM root transforms, in the MSM concept, the understanding of efficiency
assessment into something easily quantifiable, simpler, concise and directly
applicable to any production system, in a process sequence or even in
compartmented units
 The combined use of Value Stream Layers of a Value Stream Map emerges in order
to “see beyond” the global environmental and financial performance of a
production system in a simpler manner
 Enables the understanding of the overall efficiency assessment, and at the same
time simplify the identification and quantification of specific inefficiency situations
 Combines the assessment of resource efficiency with other type of variables, such
as control variables (operations control), enabling the connection of both
efficiency assessment and effectiveness assessment.
Page 10
3. Multi-Layer Stream Mapping description
Value Stream Mapping (VSM) with application of Lean Principles
Pillar 1: Assess Value Addition versus not adding value
Evaluating variables (KPI)
via efficiency ratios
Pillar 2: Systematically
evaluate variables (and KPIs)
through efficiency ratios
Page 11
3. Multi-Layer Stream Mapping description
Pillar 2: Systematically evaluate variables (and KPIs) through efficiency ratios
 Identify all the variables that influence the stages of the value chain
 Create Key Performance Indicators (KPI) for the variables in the form of ratios
 Values ​of the ratios should be always within the range [0-100%]
 KPI always created in order to be always maximized
Basic form for the KPI formula
Φ
“Value added” fraction
“Value added” fraction + “Non-value added” fraction
Page 12
3. Multi-Layer Stream Mapping description
Pillar 2: Systematically evaluate variables (and KPIs) through efficiency ratios
 The MSM consists in replicating part of the approach used for Value Stream
Mapping, but allowing the addition of multiple layers (for each process or stage
variable)
ØTPi =
PTPi
[%]
LTPi
VSM
ØEPi =
PEPi
[%]
TEPi
ØCPi =
PCPi
[%]
TCPi
MSM
ØXPi =
PXPi
[%]
TXPi
Page 13
3. Multi-Layer Stream Mapping description
Pillar 2: Systematically evaluate variables (and KPIs) through efficiency ratios
 The values in the lower line segments are those which do not add value to the product, i.e.
representing the waste /misuses of time, resources, costs, etc.
 The values on the upper line segments are those that add value to the product, thus representing
the “useful consumption” within the stream or system.
ØTP1
ØTP2
ØTPi
ØEP1
ØEP2
ØEPi
ØCP1
ØCP2
ØCPi
ØXP1
ØXP2
ØXPi
Page 14
3. Multi-Layer Stream Mapping description
Value Stream Mapping (VSM) with application of Lean Principles
Pillar 1: Assess Value Addition versus not adding value
Evaluating variables (KPI)
via efficiency ratios
Pillar 2: Systematically
evaluate variables (and KPIs)
through efficiency ratios
Visual Management
Pillar 3: Apply simple
methodologies of Visual
Management
Page 15
3. Multi-Layer Stream Mapping description
Pillar 3: Apply simple methodologies of Visual Management
 Relate the level of efficiency with 4-color type of systems analysis (red, orange, yellow,
green) in the direction of increased efficiency [0-100%]
Process Stream Analysis
Multi-Layer Stream Mapping
Process Efficiency 100 - 90%
Process Efficiency 89 - 70%
Process Efficiency 69 - 40%
Process Efficiency <40%
Page 16
3. Multi-Layer Stream Mapping description
Value Stream Mapping (VSM) with application of Lean Principles
Pillar 1: Assess Value Addition versus not adding value
Evaluating variables (KPI)
via efficiency ratios
Pillar 2: Systematically
evaluate variables (and KPIs)
through efficiency ratios
Visual Management
Pillar 3: Apply simple
methodologies of Visual
Management
Calculate overall efficiency of processes/systems (bottom-up analysis)
4th Pillar: Aggregate efficiency of unit processes (columns) and the variables (lines)
Page 17
3. Multi-Layer Stream Mapping description
4th Pillar: Aggregate efficiency of unit processes (columns) and the variables (lines)
Efficiency Process Stream Analysis
MSM® efficiency card
Cleaning
WPTS
2
Coating
bolt holes
2
Mixing
paint
2
Applying
primer
2
Drying
Inspection
2
2
Global efficiency
83%
70%
69%
85%
90%
79%
Production Time (hours)
67%
94%
70%
90%
90%
80%
82%
Electrical Energy Consumption
69%
65%
70%
65%
80%
95%
74%
-
-
-
85%
85%
-
85%
-
90%
-
35%
-
-
63%
100%
-
-
-
-
-
100%
-
-
-
-
-
95%
95%
Diesel Consumption (kg)
Paint & Curing agent & Diluent
Consumption (kg)
Auxiliary Material Consumption (kg)
Proper Waste Disposal (kg)
Key
Process Efficiency 100 - 90%
Process Efficiency 69 - 40%
Process Efficiency 89 - 70%
Process Efficiency <40%
MSM (resource efficiency)
79%
Unit Process Efficiency
Page 18
3. Multi-Layer Stream Mapping description
4th Pillar: Aggregate efficiency of unit processes (columns) and the variables (lines)
57%
L3
61%
62%
L1
L2
Lines
Plant
71%
90%
60%
P1
P3
60%
75%
P2
P4
Company
Page 19
3. Multi-Layer Stream Mapping description
Desegregated Cost Analysis by monetizing the MSM KPI values
Costs (Euros)
Added value costs vs. non added value costs
Labour
(k€)
Energy costs
(k€)
Value added
Diesel costs
Water costs
(k€)
(k€)
Non-value added
Packaging costs
(k€)
due to confidentiality reasons the values are uncharacterized
Page 20
3. Multi-Layer Stream Mapping description
MSM’s position regarding other Lean Tools
PDCA
5 why
7 Wastes
TPM
SMED
VSM
Performance Assessment
5S
Continuous
Improvement
DMAIC
Page 21
3. Multi-Layer Stream Mapping description
MSM Strengths – Vision of the MSM with online monitoring (sensors IoT)
Aligned with the Industry 4.0 new challenges
Page 22
3. Multi-Layer Stream Mapping description
MSM Strengths – Versatile Analysis by “Efficiency Cards”
Inventory
Efficiency
Fingerprint
Energy Efficiency
Materials
MSM Scorecard RESOURCES
Summary
analysis
MSM Scorecard OPERATIONS
MSM Scorecard FLOW
Continuous
Improvement
MSM Scorecard DOMAIN X
OEE
Other KPI
Value added and
non value added
Inputs
bottlenecks
Customized
Results
Page 23
4. Case study definition and results
Plywood boards finishing line description
Unit Process (Stages) Description
Feeding table
Calibrating
Sanding
Supply the conveyer with boards (automatically)
Consist in calibrating the board's thickness using coarse and
medium sand paper
Consist in sanding the MDF boards to obtain a smooth finish and
guarantee the specification thickness
The cutting process consists of two steps, vertical cutting and
Cutting
longitudinal cutting, during these steps the MDF boards are also
calibrated in terms of width and length
Stacking
Packing
During this unit process the MDF boards, already cut, are stacked,
and the protection board is placed on the top
This unit process is carried out by placing cardboard and the base
studs, finally the strapping PET tape placed
Page 24
4. Case study definition and results
Plywood boards finishing line description
KPI for Operational Variables
Analysed variables:
Time (h)
Resource and
energy variables
Operational
variables
Electrical energy (kWh)
Diesel (l)
Appropriate referral of waste (kg)
Linear meters sanded per sandpaper
(m)
Sandpaper utilization (m2)
Quality (units)
Length (mm)
Width (mm)
Thickness (mm)
Planned down time (min)
Planned production time (min)
Unplanned down time (min)
• Adopt statistical control technics,
applying control bands to set the
boundary limits (“area tend to
add value”)
• Penalize function that accounts
for the waste areas (“tend to
create waste”)
• Assessment of effectiveness,
rather than efficiency
Variable
value
Counts (N)
Page 25
4. Case study definition and results
 Product : Plywood board
 Functional Unit: m3
 Period of analysis: 1 year
Resource efficiency assessment
Feeding table
0,42
Calibrating
0,42
Sanding
0,42
Cutting
0,58
Stacking
0,58
Packing
0,58
71%
84%
85%
60%
70%
56%
71%
Time (h)
78%
50%
67%
9%
70%
12%
36%
Electrical energy (kWh)
65%
71%
76%
75%
70%
18%
62%
-
-
-
95%
-
95%
95%
-
100%
100%
-
-
100%
100%
-
100%
80%
-
-
-
93%
-
100%
100%
-
-
-
100%
Unit processes
Resource overall efficiency
Diesel (l)
Appropriate referral of waste
(kg)
Linear meters sanded per
sandpaper (m)
Sandpaper utilization (m2)
Process Efficiency 100 - 90%
Process Efficiency 89 - 70%
Process Efficiency 69 - 40%
Process Efficiency <40%
Page 26
4. Case study definition and results
 Product : Plywood board
 Functional Unit: m3
 Period of analysis: 1 year
Operation efficiency assessment
Feeding table
0,42
Calibrating
0,42
Sanding
0,42
Cutting
0,58
Stacking
0,58
Packing
0,58
82%
82%
79%
77%
86%
77%
80%
Availability (min)
62%
62%
62%
62%
62%
62%
62%
Speed Loss (min)
67%
67%
67%
67%
67%
67%
67%
Quality (units)
100%
100%
86%
100%
100%
100%
98%
Length (mm)
-
-
-
-
100%
-
100%
Width (mm)
-
-
-
-
100%
-
100%
99%
98%
99%
-
-
-
99%
Unit processes
Operation overall efficiency
Thickness (mm)
Process Efficiency 100 - 90%
Process Efficiency 89 - 70%
Process Efficiency 69 - 40%
Process Efficiency <40%
Page 27
4. Case study definition and results
 Product : Plywood board
 Functional Unit: m3
 Period of analysis: 1 year
Overall dashboard
(Operation & resource efficiency)
Unit processes
Feeding table
0,42
Calibrating
0,42
Sanding
0,42
Cutting
0,58
Stacking
0,58
Packing
0,58
Overall production system
Performance (%)
59%
69%
67%
46%
60%
43%
57%
Overall resource efficiency (%)
71%
84%
85%
60%
70%
56%
71%
Overall Operation efficiency
(%)
82%
82%
79%
77%
86%
77%
80%
INFORMATIVE VARIABLES
OEE
42%
42%
36%
42%
42%
42%
41%
Bottleneck
100%
41%
50%
31%
59%
23%
51%
Process Efficiency 100 - 90%
Process Efficiency 89 - 70%
Process Efficiency 69 - 40%
Process Efficiency <40%
due to confidentiality reasons the values are uncharacterized
Page 28
4. Case study definition and results
Disaggregated Cost Analysis (€ / m3)
9,0 €
8,0 €
€3,29
19%
7,0 €
6,0 €
5,0 €
14,31 €
81%
4,0 €
3,0 €
2,0 €
1,0 €
- €
Packing
materials
Electrical
Energy
Labour
Sandpaper
Value added
Diesel
Non value added
due to confidentiality reasons the values are uncharacterized
Page 29
5. Conclusions and remarks
 MSM approach brings a new perspective to assess Overall Performance of a System, since results
can be quantified by a discreet method for a process sequence or a individual system
 It integrates strong visual management attributes and is mathematically simple (very easy to use
for all kind of stakeholders)
 The Multi-layer Stream Mapping enables to calculate the aggregation efficiency of different aspects
of management of a system, by the integration of different “MSM EFFICIENCY CARDS”
 Very versatile and wide range concept that can be applied for multi-variable and multiple-domain
activities (project management, logistics, economics, services, health care, etc.)
 Other potential characteristics
 Simple warning programming (Alarmistic) to assist in maintenance
 Support the simplified identification of root causes of problems
 Simplified ROI for improvement actions analysis (payback)
 Easy tracking of indicators on the production line
 Great alignment with Industry 4.0 (“sensing enterprise”, “Internet of Things”, etc.)
 Inductor culture of continuous improvement and focus on reducing waste
Page 30
5. Conclusions and remarks
Other MSM applications
Wine Vineyard Farm (ongoing project)
Other past or ongoing projects:
 Textil Industry
 Process Industry – SPIRE H2020
MAESTRI Project - ongoing
 Aeronautics – CLEAN SKY H2020
Bed 1
Bed 2
Bed 3
PÁSSARO (with Airbus Spain) - ongoing
Page 31
Using Multi-layer Stream Mapping to assess the overall efficiency and
waste of a production system: A case study from the plywood industry
Thank you for your attention
António J Baptista (abaptista@inegi.up.pt)
Page 32
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