1 Mix Model for Executives FMS 200 Series FBP-FMS288A

2 Content Mix Model Introduction Family Grouping Differences from Hi Vol/Low Mix Mix Model TAKT Equipment Capacity Building a Mix Model Analysis table

3 Hi Mix/Low Vol vs. Hi Vol/Low Mix What single factor makes High volume/Low Mix different from High Mix/Low Volume? Takt Time for a single product = Time Available Demand What if we have many products through the same process? Takt Time for a Mix of Products = Time Available Total Demand A Mix Model assembly process requires more thought than single product due to variation with product velocity, WIP accumulation and bottleneck management

4 The Product Family These 14 products go through 8 distinctive process steps. Since we will explain flow downstream from the pacemaker, we must identify the place where flow stops and inventory accumulates. Note that the same flow methodology should be applied to any section of the VSM that needs to flow.

5 The Product Family Once we have identified the pacemaker (dedicated resources), we sort and select the product family according to process commonality

6 The Product Family With the Process Times we can now find the range and delta of the total work content for every product. Should be 30% or less

7 The Product Family A delta of greater than 30% may indicate that one or more products belong to a different family Flowing products through a cell with work contents greater than 30% delta will cause difficulties with balancing and confusing operating behavior. Some products will have more labor than others at the same station, and keeping a sense of pace will be difficult. Still, if the demand is not high enough to have a dissimilar product join a different group, then we will have to manage it as is…

8 Demand for the Product Family Now we include demand for each product on a daily and weekly view. Each process consumes the same demand and requires time to produce it Time needed to build Network System Y1 at Chassis Assy = 280 x 15 = 4,200 sec

9 Takt and Resources for the Product Mix

10 Equipment Capacity to meet Takt We have only 1 Functional tester, and at a 90% uptime we have 100% utilization In the future, we will have to work on improving Uptime to reduce utilization requirement on the equipment. We want stay below 90% if possible. Time requirement to process increases with poor uptime 48,690 = 54,100 seconds 90%

11 Equipment Capacity to meet Takt To meet TAKT, the planned machine/equipment cycle time should ideally be around 90% of TAKT. What if the machine cannot meet the TAKT time? - Kaizen the load, start and unload process (refer to SOE details); - Eliminate waste in the machine cycle itself to reduce time, e.g. shorten travel distance and time of moving machine parts; -At the constraint machine, determine if some of the tasks can be performed by some other machines; -Install 2 machines of the same type at the constraints points and alternate between them on each cycle; -Remove the constraint equipment from the cell and operate it independently (strategic buffers) -Relocate (material or work content) -Use SMED* technique for set-up time reduction and quick changeover -Add resources (machine, inventory, overtime) – (last resort)

12 First Level View for the Product Mix To flow, each operation must produce at a speed of 200 sec/units. This makes clear the need for balancing each operation to Takt. The following section will focus on Sequence of Events (SOE) and Operator Balance Charts (OBC) Flow

13 Line Balancing If a sequence of events is labor intensive, both labor and material can be redistributed in order to obtain a balance Distribute the work content through the workstations, as appropriate, to meet the calculated Takt time An imbalance exists when the Cycle Time can’t achieve Takt TaktActual C/T

14 Line Balancing Time Operations Takt time ABCDE Time Operations Takt time ABCDE In this case, two things can happen: All operators must wait or all operators will overproduce In this case, operators cannot overproduce. One operator may wait, which helps us focus the improvement effort (kaizen blitz). The rate at which we produce to meet customer demand is TAKT A good target for the Planned Cycle Time is 92-95% of TAKT Takt time = 120secs Operations AB C D PCT = 110sec (92-95% of Takt)

15 Line Balancing Work is redistributed between operations and one station is eliminated Takt The functional test exceeds Takt and can’t be separated or broken down. We will deal with this problem later.

16 Line Balancing A kaizen to reduce the total labor content for Chassis and backplane assemblies helped reduce the number of operators to 2. A second kaizen event helped reduce the work content for packaging by 20 seconds. This eliminated the need to add a 5 th operator.

17 Line Balancing In the last 2 products, we were not able to reduce the work time for packaging. We will set up the packaging operation with the 90 sec work content and develop kaizen plans to eliminate it.

18 Average Weighted Cycle Time Some products take longer than others at Test, and the average speed to produce the mix is 201 sec Improving uptime helps AWCT, so we can handle the mix

19 Load Leveling So, for our example, can we really build the Mix in 1 day?

20 Cycle Time Interval Set Ups consume valuable time: Chassis Assy (changing P/N’s) Func Test (Cables and fixtures) Traffic Test (cables)

21 Cycle Time Interval The Cycle Time Interval tells us how many days it will take us to complete the Mix Due to the time consumed by Set Ups, it will take 2 days to produce this Mix No of Products Max No of Set Ups

22 Cycle Time Interval CTI helps us calculate the size for each production batch In this example we can decide to run the mix over 2 days and batch 2X of the daily requirement OR we could Kaizen the Set Up times to achieve a CTI of 1 day or less

23 CTI Analysis Lower CTI = Higher Productivity Managing AWCT Sensitivity Balancing to Takt Formal Set Up reduction program Focus on Equipment uptime WIP Management

24 CTI Exercise