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Optimizing High-Mix Low-Volume Operations Shahrukh A. Irani Department of Integrated Systems Engineering The Ohio State University Columbus, OH 43210 PHONE:

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Presentation on theme: "Optimizing High-Mix Low-Volume Operations Shahrukh A. Irani Department of Integrated Systems Engineering The Ohio State University Columbus, OH 43210 PHONE:"— Presentation transcript:

1 Optimizing High-Mix Low-Volume Operations Shahrukh A. Irani Department of Integrated Systems Engineering The Ohio State University Columbus, OH 43210 PHONE: (614) 688-4685 EMAIL: WEBSITE:

2 Agenda Types of Manufacturing Systems What type of manufacturing system do you manage? What makes jobshops (high-mix, low-volume, MTO) different from any “Toyota-type” plant? Limitations of the (Toyota)Lean tools Examples of high-mix low-volume (HMLV) manufacturing systems CASE STUDY: Optimization of the layout of an entire plant CASE STUDY: Optimization of the setup on a press A Toolbox for High-Mix Low-Volume Manufacturers

3 Spectrum of Manufacturing Systems QUANTITY (Volume) MIX (Variety) High Low High Assembly Lines or Transfer Lines Flexible Flowshops Manual Cells Flexible Mfg.Cells Jobshops

4 $ALES ($) MIX (R) QUANTITY (Q,T) Outliers In a Part Family LOW HIGH PROTOTYPES STRANGERS RUNNERS REPEATERS P What is Your Manufacturing System?


6 Strategic Planning Top-Down Leadership Motivated Workforce 5S Total Productive Maintenance Setup Reduction Error-Proofing Quality at Source Visual Workplace Right-sized Equipment Standardization of Work X Right-sized (= Inflexible) Machines X Kaizen Events (Mainly by Operators) X 20 th (not 21 st ) Century Managers X Pencil-and-Paper Problem Solving X Value Stream Mapping X One-Piece Flow Cells X Product-specific Kanbans X FIFO Sequencing of Orders X Pacemaker Scheduling X Inventory Supermarkets X Scheduling using Takt Time X Heijunka/Load Leveling X Assembly Line Balancing Many Lean Tools are NOT Universal

7 How to Recognize a High-Mix Low-Volume Manufacturing System?

8 Forge Shop (≈500 Routings)

9 MTO Industrial Scale Fabrication Facility

10 Flexible Machining Cell

11 Finish Grinding Department

12 Factory Layout Optimization at Ulven Forging

13 Current State

14 Future State

15 Actions Taken An additional processing area was created in the Drop Hammer building where cleaning,finishing,packaging and shipping were consolidated. The 158 ton Trim Press was replaced by a 440 ton press that was positioned next to the 5000# Hammer. This eliminated the transportation of large forgings to a distant 350 ton Trim press. Also, a 350 kW induction heater and conveyor were purchased and co-located with this press to form an Upset Forging cell. A new 2.5” Upsetter was purchased and positioned next to the 3000# Hammer to form an Upset Forging cell.

16 Actions Taken (contd.) The 1.5” Upsetter was replaced with a faster machine and positioned next to the 700 ton Press to form an Upset Forging cell. A crane was installed over the 5000# Hammer to reduce piston change-out time, reduce die key tightening time and to facilitate product movement in the area. A portable Marvel Hacksaw and 1.5” Bar Shear were acquired. A CNC Mill was acquired and positioned next to the EDM machine to reduce vendor costs and lead times for die sinking.

17 Benefits Approximately 5% cost savings on annual sales of $ 6 million WIP reductions were significant Lead times quoted to customers were reduced Throughput ($ales) increased Since this company is a defense supplier, they were reluctant to release financial and delivery performance data that could be seen by their customers (Defense Logistics Agency and Department Of Defense)

18 Press Setup Optimization at Hirschvogel

19 Observe and Document the Press Setup

20 Work Locations around the Press

21 Sequence of Tasks in Press Setup

22 Operator Motion Traffic around the Press

23 New Workstation Layout for the Press

24 Operator Motion in Previous Layout

25 Operator Motion in New Layout

26 Press Setup Time: Before vs. After Activities Current ProcessRedesigned ProcessDifference No.Time%No.Time%No.Time Operations2471:32:0771%2351:28:5379%-12-0:03:14 Inspections320:11:289%310:11:2310%-0:00:05 Transport.1350:17:5414%920:12:4511%-43-0:05:09 Storage00:00:000%00:00:000%00:00:00 Delays120:09:017%00:00:000%-12-0:09:01 Total4262:10:30100%3581:53:01100%-68-0:17:29

27 Potential Increase in Production = [EPT – (# of Setups * Time/Setup)] / Cycle Time per Part Estimation of Increased Production

28 Potential Increase in Revenue = [EPT – (# of Setups * Time/Setup) / Cycle Time per Part] * $/Part Estimation of Increased $ales

29 Part #DemandPrice/ PartRevenue A12346,000 $ 15.55 $ 93,300.00 B34563,300 $ 7.00 $ 23,100.00 D67557,500 $ 12.50 $ 93,750.00 Extra Parts16800Extra Revenue $ 210,150.00 CategoryInitialProposed% Decrease Setup Time (min)130.560.8653.3% Number of Activity Steps42635816.0% Distance travelled by Operator (steps)116779731.70% Potential Increase in Revenue Savings in Setup Time Benefits

30 Parallel Task Scheduling for Press Setup  1 Operator 113.02 min (Current State)  2 Operators 60.86 min (Parallel Execution of Activities)  3 Operators 60.86 min (Unnecessary, 2 operators are OK) Gantt Chart for Optimized 2-Person Setup Process Op #1 Op #2

31 Optimization could Enhance Every Lean Tool

32 Value Stream Mapping Work Order Release Multi-Period Slotting of Orders Demand Forecasting Cell Design Scheduling Material Handlers Scheduling Supplier Deliveries WIP Inventory Control Work Center Scheduling Warehouse Design Current Project at Pompano Beach

33 CURRENT STATEFUTURE STATE MORE…. A Toolbox for HMLV Manufacturers

34 Acknowledgements The PRO-FAST Program is enabled by the dedicated team of professionals representing the Defense Logistics Agency, Department of Defense and industry. These team mates are determined to ensure the Nation’s forging industry is positioned for the challenges of the 21 st Century. Key team members include: R&D Enterprise Team (DLA J339), Logistics Research and Development Branch (DLA – DSCP), and the Forging Industry Association (FIA).

35 Acknowledgements Project Champion: Craig Kaminski Project Engineer: Haydn Garrett Project Champion: Andrew Ulven Project Engineer: Jim Huiras Project Champion: Joe Kracheck Project Engineer: John Lucas Project Champion: John Wilbur Project Engineers: Thomas Slauta Project Champion: Thomas Stys Project Engineer: Jorge Alvarez Project Champion: Kevin Shaw Project Engineer: Greg Muniak Project Champion: Dick Johnston Project Engineer: Todd Sheppard PFAST Development Team Dr. Rajiv Ramnath Dr. Rajiv Shivpuri Dan Gearing Jon Tirpak Russell Beard Vicky McKenzie

36 Questions?

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