1. 1 Rolled Throughput Yield Exercise 3_01_07_003

2. 2 Objective of Exercise l Demonstrate the impact of process variation on:  Rolled Throughput Yield  Product Cost  Cycle Time 3_01_07_004

3. 3 Goal of Team l Ship 25 good units to customer l Maximize yield l Minimize:  Scrap and rework  Total cost  Total cycle time 3_01_07_005

4. 4 People/Equipment Needed l About 12 participants per team l Three targets l One deck of 52 cards l Stop watch l 3 pads of paper l Tally sheet (Excel worksheet) 3_01_07_006

5. 5 Process Flow Good product is advanced to next process step, defects are recycled Recycle Good Units Input 25 Units Good Units Step #1Step #2Step #3 Recycle 3_01_07_007

6. 6 Team Roles At each process step: Operatordrops card Material handlermoves good cards to next process step recycles defects back to operator Recorderrecords performance data for process step Also, each team will need: Timekeepermeasures time to completion Customerreceives and counts good units received Data entry clerkinputs performance data into worksheet 3_01_07_008

7. 7 Games Rules l Start with full deck (52 cards) as input l Stand next to (but not on) target l Hold cards:  one at a time  at arm’s length and at shoulder height  with vertical orientation (or as instructed) l Drop toward center of target 3_01_07_009

8. 8 Game Rules (continued) l Units landing completely within customer specification limit (outer red circle) are moved to next process step (or shipped to customer) l Units landing on or beyond specification limit are recycled l Stop game when 25 good units are achieved in step 3 l Use tally sheet provided to measure results l Present results to group 3_01_07_010

9. 9 Data to Track l Total good units moved to subsequent step (or to customer) l Total “drops” at each step (you do not need to count recycled units separately) l Total cards never used (first operator only - must segregate units never used from recycled units) l Total time from first drop to completion of customer order 3_01_07_011

10. 10 To Begin l Choose roles l Get equipment together l Run trial of 5 units l Return cards to first operator l Begin dropping and start stopwatch 3_01_07_012

11. 11 Scoring and Results Sheet (Use Excel file provided) Results Input Data Material yield0.609756 Process yield Step 10.613636 Total cardsTotal goodUnused Step 20.714286 droppedunitscards Step 30.595238 Step 1442711 RTY0.260900 Step 23525 Step 34225 Cost/unit Materials$8.20 Total time (sec)120 Process$9.68 Scrap$0.64 Total$18.52 Material Cost per Unit$5.00 Process Cost per Unit$2.00 Cycle time4.80 Scrap per Unit$1.00 3_01_07_013

12. 12 Assumptions Used in Scoring l Yield  Materials yield - shipment qty / total input into step 1  RTY - multiplication of yield (units in spec / total drops) for all three process steps l Cost  Materials cost - $5 per unit introduced into step 1  Process cost - $2 per drop  Scrap - $1 per unit in process at end of game (WIP) l Cycle time - total time / number of units shipped to customer 3_01_07_014

13. 13 l Was there process variation? l Was the process in control? l What was the impact of process variation on:  Defects?  RTY?  Cost?  Cycle time l How could you improve? RTY=$$ 3_01_07_015 What Did We Learn?