Nova days key success factor in production and business environment is a correct Information Flow Management. Almost all companies work with constantly grown SKU’s and raw materials numbers, that leads to working with smaller and smaller batches, shorter and shorter lead times and higher and higher quality standards which brings high complexity in effective production flow management. To manage and visualize Information Flow became necessary condition for effective production, business management or any kind of improvements – LEAN, TOC, Six Sigma or TLS.

1. CSI approach to your Production
Management
Director
Andrius
Gudai0s
2013.05.171
1

2. Nova days key success factor in production
and business environment is a correct
Information Flow Management.
Almost
all
companies
work
with
constantly
grown
SKU’s
and
raw
materials
numbers,
that
leads
to
working
with
smaller
and
smaller
batches,
shorter
and
shorter
lead
0mes
and
higher
and
higher
quality
standards
which
brings
high
complexity
in
effec0ve
produc0on
flow
management.
To
manage
and
visualize
Informa/on
Flow
became
necessary
condi0on
for
effec0ve
produc0on,
business
management
or
any
kind
of
improvements
–
LEAN,
TOC,
Six
Sigma
or
TLS.
2
2

3. Meaning of Proginta Inc. service is to arrange company’s
Information Flow in such way that Company Management
or Lean, TOC, Six Sigma consultants could easily recognize
where to put their attention to increase efficiency of
production flow and reliability of client service.
3
3

4. Proginta inc.
—Proginta
inc.
combine
different
competences,
soUware
development
and
ERP
deployment
with
deep
interna0onal
consultant
exper0se
based
on
supply
chain
and
produc0on
management
using
latest
TOC
and
LEAN
tools
and
methodology.
—Proginta
inc.
provide
Informa(on
Flow
management
services
in
Ukraine
and
Europe
from
2008.
Services
included:
classic
consul0ng,
IT
solu0ons,
daily
work
with
data
flow
and
Reports.
The
goal
of
our
service
is
to
help
a
client
to
improve
their
financial
result.
4
4

5. Methods we have competencies in:
5
5

6. Proginta is focusing on three main flows
or processes
Informa0on
flow
Money
flow
Products
and
services
flow
6
6

7. Proginta offers a long term
service of:
—Systemic
analysis
of
the
en0re
company
or
—Localized
analysis
of
client’s
choice
according
to
Lean
and/or
TOC
as
a
pilot
project.
7
7

8. Systemic analysis
8
8

9. Quantum cryptography
vs. Business
9
9

10. Production efficiency depends on the efficiency of
every link in production chain: supply, production
departments and logistics.
Problems that disrupt production plan are generally
known and taken care off as they arise.
This “fire-fighting” method does not provide systemic
improvement, because it fights symptoms and not the
cause of the problems.
10
10

11. Systemic analysis
must specify
production
disturbance causes
and their ratings.
This allows to
determine causes
that affect
production plan the
most weekly and
monthly.
11
0"
5"
10"
15"
20"
25"
30"
35"
3'5'2013"3'6'2013"3'7'2013"3'8'2013"3'9'2013"
3'10'2013"
3'11'2013"
3'12'2013"
Defec0ve"RM"
Order"sequence"changes"
Issues"with"working"tools"
Quality"defects"
Equipment"failure"
Raw"materials/components"
supply"
Raw$
materials/
components$
supply$
25%$
Equipment$
failure$
12%$
Quality$
defects$
16%$
Issues$with$
working$
tools$
21%$
Order$
sequence$
changes$
7%$
DefecDve$
RM$
19%$
11

12. Production process
Order
dispatch
Material
arrival
Material
ordering
Material
issuing
Element
transfer
to
department
X
Element
transfer
to
department
Y
Product
arrival
to
warehouse
12
12

13. Systemic analysis measures:
— Reliability of material supply;
— Planned production starts;
— Timely transfers between departments;
— Timely production task completions;
— Timely order dispatches;
— Etc.
13
13

14. Production process
Order
dispatch
Material
arrival
Material
ordering
Material
issuing
Element
transfer
to
department
X
Element
transfer
to
department
Y
Product
arrival
to
warehouse
Measures
in
selected
points:
—
DDP%,
—
OS,
—
TVD.
14
14

15. Rating’s purpose:
DDP
(Due
Date
Performance)
%
indicates
reliability
of
a
link.
If
a
link
does
not
have
buffer
or
excess
produc0on
capacity,
then
the
following
link
receives
a
lag.
Common
causes:
— Un0mely
material
supply;
— No
material
supply;
— Previous
link
changed
produc0on
tasks;
— Incorrectly
planned
produc0on
scope;
— Etc.
15
15

16. Rating’s purpose:
OS
–
Over
Stock
Common
causes:
— Overprotec0on;
— Produc0on
oriented
efficiency;
— Preceding
departments
starts
tasks
too
early;
— Incorrectly
planned
queue
in
preceding
departments;
— Large
produc0on
batches
policy;
— Etc.
16
16

17. Rating’s purpose:
TVD
(throughput
value
days)
This
ra0ng
evaluates
financial
lag
of
delays.
It
allows
to
analysis
financial
impact
of
delays
and
to
allocate
TVD
points
to
the
source
of
delay.
17
17

18. Required data:
DDP%
Ini0al
data
–
detailed
produc0on
plan:
— Produc0on
start
0me,
end
0me
and
planned
amount;
— Equipment
prepara0on
0me;
— Single
element
processing
cycle;
— Equipment
standby
0me.
Opera0ons
data:
— Reasons
for
changing
produc0on
plan;
— Amount
produced
between
X
and
Y
hours;
— Accumulated
lag.
18
18

19. Data required for planning:
— Number
of
resources
in
a
department;
— Resources’
work
schedule;
— ShiUs’
work
schedule.
19
19

20. Data required for planning:
— Material
supply
schedule
Evalua0on
of
material
supply
reliability
(ordered
vs.
arrived)
Material
arrival
terms
(lead
0me,
on
request)
Procurement
plan
forming
20
,etc.
Your ERP system
20

21. Data (or VSM) required for planning:
— Produc0on
route.
— System
that
plans
according
to
produc0on
routes.
21
21

22. Data entry forms - Production routing (operations sequence and
resources) description
If
current
systems
cannot
store
required
data…
22
22

23. Data entry forms – Bills of material and Product assembly tree
If
current
systems
cannot
store
required
data…
23
23

24. Data entry forms – Job sequence management with raw control
If
current
systems
cannot
store
required
data…
24
24

25. Data entry forms – Job execution management with barcode or
custom instruments
If
current
systems
cannot
store
required
data…
25
25

26. Data entry forms – Job sequence management per resource
usage
If
current
systems
cannot
store
required
data…
26
26

27. Acquiring actual data
Supply Produc0on Warehouse
27
27

28. Acquiring actual data
Procurement
data:
1) Ordered
materials:
item
number,
quan0ty,
planned
delivery
0me;
2) Materials’
total
received
quan0ty;
3) Factors
that
cause
delivery
lag;
4) Reasons
for
changing
delivery
0me
before
delivery
term.
First
two
acquired
from
business
management
system,
others
–
from
analysis.
Supply Produc0on Warehouse
28
28

29. Acquiring actual data
Produc0on
data:
1) Does
the
task
have
all
required
materials?
2) Which
tasks
executed
according
to
plan?
3) What
are
the
reasons
for
changing
produc0on
plan?
4) What
have
caused
produc0on
lag?
5) How
tasks
are
queued?
6) What
produc0on
facili0es
are
required?
Evaluate
how
much
data
is
in
BMS
(SAP,
Oracle
&
etc)
and
how
much
to
give
to
external
system.
Supply Produc0on Warehouse
29
29

30. Acquiring actual data
To
collect
informa0on
that
is
transmiqed
between
work
centers/departments
required
:
1) What
was
the
plan?
2) What
was
produced
at
a
specified
0me
and
in
what
quan00es?
3) What
have
caused
lags?
4) How
much
spoilage
was
produced?
What
was
it?
5) What
was
material
spoilage?
Is
it
possible
to
indicate
in
IT
system,
that
department
has
excess
resources
or
buffer?
Supply Produc0on Warehouse
30
30

31. INSTRUMENTS:
+
Acquiring actual data
Boqleneck
opera0ons
data:
1) How
produc0on
is
queued?
2) What
is
equipment's
prepara0on
0me?
3) What
is
the
0me
for
single
element
cycle?
4) What
causes
lags?
5) How
much
spoilage
produced?
What
was
it?
6) What
was
material
spoilage?
7) Etc.
Data
sources
include
automated
data
collec0on
systems
(Lean2S)
and
IP
video
cameras
monitoring
opera0ons
or
Supply Produc0on Warehouse
31
31

32. Acquiring actual data
Orders
data:
1) What
is
order
dispatch
plan?
2) How
many
orders
dispatched
according
to
plan?
3) What
have
caused
lags?
4) Reasons
for
changing
dispatch
0me
before
dispatch
term.
First
two
acquired
from
business
management
system,
others
–
from
analysis.
Supply Produc0on Warehouse
32
32

33. Our aim - to identify what causes plan changes/
lags, order completion lags, production starts
too early or produce to much.
It enables to isolate recurring causes that
adversely affect the results.
It also enables systematic application of Kaizen
or POOGI improvement mechanism.
33
33

34. Automated
data collection
34
34

35. Simple
&
Smart
solu0on
35
35

36. The importance of data transmission
reliability
While researching production efficiency solutions we
discovered that data reliability is very important:
Given example demonstrates data distortion. First chart depicts actual work cycle. Second
charts depicts situation when there were no connection to database between minutes 5
and 10:
— System did not record 7:00–9:00 downtime.
— This distributed and hid the 5:00–6:00 spike.
— Spike that occurred right before the downtime compensated the latter. This would not
be visible in summarized data and would not draw attention to such event.
Summarizing
distorts
data.
People
who
make
decisions
divide
into
camps:
those
who
agree
with
the
data
and
those
who
do
not.
People
who
do
not
agree
with
the
data
do
not
par0cipate
in
decision
realiza0on.
1
2
36
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pcs/min"
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60"
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pcs/min"(from"05"to"10"min"lost"connec;on)"
pcs/min" lost"connec;on"
36

37. Protection against data loss
Considering possible data loss, we have implemented
solutions that minimize the risks to an absolute
minimum:
1) Data receiver preserves data of up to 10 hours of
work while database is down.
2) Data receiver preserves collected data indefinitely
while database is down.
3) Software informs personnel via e-mail or SMS when
communication is down, allowing quick troubleshooting
and data preservation.
37
37

38. Data integrity
Companies usually use various types of
equipment from different vendors.
Consequences of processing data by different
software:
1) Different software presents the results
differently.
2) Users must learn what those results mean and
what to look at.
3) There is no way to analyze equipment
interdependences.
4) Employees who move to another department
may have to learn new analytical tools that may
38
38

39. Flexibility of our equipment
Because we are the developers, we are able to adapt our
solution to a specific project.
Data collection unit is constructed using industrial controller
(PLC) that enables to:
— Read data from any type of sensor.
— Adapt data collection algorithms to specific cases.
— Control external equipment.
— Accumulate data internally when communications are
down.
Data transferred to PC using:
— Direct connection via COM port.
— Industrial grade wireless connection.
Data collection from external systems:
— We implemented means to exchange data with external
systems.
— As the software developer, we are able to adapt data
exchange between any hardware and software.
— It is possible to export collected data to Your ERP system.
Duomenų
mainai
su
išorinėm
sistemom
39
39

40. Objectives
— Generating analytical reports. The purpose of
the analytical reports is to identify negative
factors using historical data.
— Identifying negative factors in real-time. The
purpose of real-time analysis to inform personnel
about identified negative factors ASAP.
40
40

41. Analytical reports
Measurements and Δ change:
EA – Equipment Availability
EEP – Equipment Efficiency Performance
EQP – Equipment Quality Performance
OEE – Overall Equipment Efficiency
Machine operation and tuning
41
!60%%
!40%%
!20%%
0%%
20%%
40%%
60%%
80%%
100%%
120%%
3!4!2013%
3!5!2013%
3!6!2013%
3!7!2013%
3!8!2013%
3!9!2013%3!10!2013%3!11!2013%3!12!2013%3!13!2013%3!14!2013%3!15!2013%3!16!2013%3!17!2013%3!18!2013%3!19!2013%3!20!2013%3!21!2013%
EA%
EA% ∆%
41

42. Spoilage analysis
42
45%$
17%$
14%$
10%$
7%$
7%$
0%$
Causes$
Raw$materials/components$supply$
Process$viola5on$
Replenishment$
Working$tools$
Employee$
Documenta5on$
others$
42

43. Visualizing equipment operation
43
43

44. Real-time analysis:
— Report workflow status every two hours.
— Notification about unplanned downtime that
is not not resolved in predefined time.
— Notification about lag exceeding predefined
time interval. (For example through text
message)
44
44

45. Our proposal -
to start from an
analysis stage:
45
45

46. Analysis achievements:
How and when does information flow now?
Identify what causes information lags.
Assess what current information we can use.
Identify current system’s resources that we can use for analytics.
Determine external IT tools required for systemic analysis.
Develop a project to fill information gaps in the current system.
Define responsibilities for entering information.
Develop a project scope and estimate budget for systemic analysis data collection and
processing.
46
46

47. Andrius Gudaitis
Phone
+370
37
30
08
12
Mobile
+370
699
9
26
59
E-­‐mail
andriusg@proginta.lt
Website
www.lean2s.eu
www.facebook.com/proginta
Darius Radkevičius
Partner
Mobile
+370
698
4
10
27
E-­‐mail
:
darius.radkevicius@gig-­‐europe.eu
47
47

48. Proginta was created to be your
business personal CSI (Corporate
System Investigator)!
48
48