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CSI approach to your Production
Management
Director	
  Andrius	
  Gudai0s	
   	
   2013.05.171
1
Nova days key success factor in production
and business environment is a correct
Information Flow Management.
Almost	
  al...
Meaning of Proginta Inc. service is to arrange company’s
Information Flow in such way that Company Management
or Lean, TOC...
Proginta inc.
—Proginta	
  inc.	
  combine	
  different	
  competences,	
  soUware	
  
development	
  and	
  ERP	
  deploym...
Methods we have competencies in:
5
5
Proginta is focusing on three main flows
or processes
Informa0on	
  flow
Money	
  flow
Products	
  and	
  services	
  flow
6
6
Proginta offers a long term
service of:
—Systemic	
  analysis	
  of	
  the	
  en0re	
  company
or
—Localized	
  analysis	
...
Systemic analysis
8
8
Quantum cryptography

 
 
 
 
 vs. Business
9
9
Production efficiency depends on the efficiency of
every link in production chain: supply, production
departments and logi...
Systemic analysis
must specify
production
disturbance causes
and their ratings.
This allows to
determine causes
that affec...
Production process
Order	
  dispatch
Material	
  arrival
Material	
  ordering
Material	
  issuing
Element	
  transfer	
  t...
Systemic analysis measures:
— Reliability of material supply;
— Planned production starts;
— Timely transfers between depa...
Production process
Order	
  dispatch
Material	
  arrival
Material	
  ordering
Material	
  issuing
Element	
  transfer	
  t...
Rating’s purpose:
DDP	
  (Due	
  Date	
  Performance)	
  %	
  indicates	
  reliability	
  
of	
  a	
  link.
If	
  a	
  lin...
Rating’s purpose:
OS	
  –	
  Over	
  Stock
Common	
  causes:
— Overprotec0on;
— Produc0on	
  oriented	
  efficiency;
— Prece...
Rating’s purpose:
TVD	
  (throughput	
  value	
  days)
This	
  ra0ng	
  evaluates	
  financial	
  lag	
  of	
  delays.
It	
...
Required data:
DDP%
Ini0al	
  data	
  –	
  detailed	
  produc0on	
  plan:
— Produc0on	
  start	
  0me,	
  end	
  0me	
  an...
Data required for planning:
— Number	
  of	
  resources	
  in	
  a	
  department;
— Resources’	
  work	
  schedule;
— ShiU...
Data required for planning:
— Material	
  supply	
  schedule
Evalua0on	
  of	
  material	
  supply	
  
reliability	
  (ord...
Data (or VSM) required for planning:
— Produc0on	
  route.
— System	
  that	
  plans	
  
according	
  to	
  produc0on	
  
...
Data entry forms - Production routing (operations sequence and
resources) description
If	
  current	
  systems	
  
cannot	...
Data entry forms – Bills of material and Product assembly tree
If	
  current	
  systems	
  
cannot	
  store	
  required	
 ...
Data entry forms – Job sequence management with raw control
If	
  current	
  systems	
  
cannot	
  store	
  required	
  
d...
Data entry forms – Job execution management with barcode or
custom instruments
If	
  current	
  systems	
  
cannot	
  stor...
Data entry forms – Job sequence management per resource
usage
If	
  current	
  systems	
  
cannot	
  store	
  required	
  ...
Acquiring actual data
Supply Produc0on Warehouse
27
27
Acquiring actual data
Procurement	
  data:
1) Ordered	
  materials:	
  item	
  number,	
  quan0ty,	
  planned	
  delivery	...
Acquiring actual data
Produc0on	
  data:
1) Does	
  	
  the	
  task	
  have	
  all	
  required	
  materials?
2) Which	
  t...
Acquiring actual data
To	
  collect	
  informa0on	
  that	
  is	
  transmiqed	
  
between	
  work	
  centers/departments	
...
INSTRUMENTS:	
  	
  

 
 +
Acquiring actual data
Boqleneck	
  opera0ons	
  data:
1) How	
  produc0on	
  is	
  queued?
2) W...
Acquiring actual data
Orders	
  data:
1) What	
  is	
  order	
  dispatch	
  plan?
2) How	
  many	
  orders	
  dispatched	
...
Our aim - to identify what causes plan changes/
lags, order completion lags, production starts
too early or produce to muc...
Automated
data collection
34
34
Simple	
  &	
  Smart
solu0on
35
35
The importance of data transmission
reliability
While researching production efficiency solutions we
discovered that data ...
Protection against data loss
Considering possible data loss, we have implemented
solutions that minimize the risks to an a...
Data integrity
Companies usually use various types of
equipment from different vendors.
Consequences of processing data by...
Flexibility of our equipment
Because we are the developers, we are able to adapt our
solution to a specific project.
Data c...
Objectives
— Generating analytical reports. The purpose of
the analytical reports is to identify negative
factors using hi...
Analytical reports
Measurements and Δ change:
EA – Equipment Availability
EEP – Equipment Efficiency Performance
EQP – Equ...
Spoilage analysis
42
45%$
17%$
14%$
10%$
7%$
7%$
0%$
Causes$
Raw$materials/components$supply$
Process$viola5on$
Replenishm...
Visualizing equipment operation
43
43
Real-time analysis:
— Report workflow status every two hours.
— Notification about unplanned downtime that
is not not resolv...
Our proposal -
to start from an
analysis stage:
45
45
Analysis achievements:
How and when does information flow now?
Identify what causes information lags.
Assess what current i...
Andrius Gudaitis
Phone	
  	
   +370	
  37	
  30	
  08	
  12	
  
Mobile	
   +370	
  699	
  9	
  26	
  59	
   	
  
E-­‐mail	...
Proginta was created to be your
business personal CSI (Corporate
System Investigator)!
48
48
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CSI approach to your Production Management

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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.

Published in: Business, Technology
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CSI approach to your Production Management

  1. 1. CSI approach to your Production Management Director  Andrius  Gudai0s     2013.05.171 1
  2. 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. 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. 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. 5. Methods we have competencies in: 5 5
  6. 6. Proginta is focusing on three main flows or processes Informa0on  flow Money  flow Products  and  services  flow 6 6
  7. 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. 8. Systemic analysis 8 8
  9. 9. Quantum cryptography vs. Business 9 9
  10. 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. 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. 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. 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. 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. 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. 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. 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. 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. 19. Data required for planning: — Number  of  resources  in  a  department; — Resources’  work  schedule; — ShiUs’  work  schedule. 19 19
  20. 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. 21. Data (or VSM) required for planning: — Produc0on  route. — System  that  plans   according  to  produc0on   routes. 21 21
  22. 22. Data entry forms - Production routing (operations sequence and resources) description If  current  systems   cannot  store  required   data… 22 22
  23. 23. Data entry forms – Bills of material and Product assembly tree If  current  systems   cannot  store  required   data… 23 23
  24. 24. Data entry forms – Job sequence management with raw control If  current  systems   cannot  store  required   data… 24 24
  25. 25. Data entry forms – Job execution management with barcode or custom instruments If  current  systems   cannot  store  required   data… 25 25
  26. 26. Data entry forms – Job sequence management per resource usage If  current  systems   cannot  store  required   data… 26 26
  27. 27. Acquiring actual data Supply Produc0on Warehouse 27 27
  28. 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. 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. 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. 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. 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. 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. 34. Automated data collection 34 34
  35. 35. Simple  &  Smart solu0on 35 35
  36. 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 0" 10" 20" 30" 40" 50" 60" 01:00" 02:00" 03:00" 04:00" 05:00" 06:00" 07:00" 08:00" 09:00" 10:00" 11:00" 12:00" 13:00" 14:00" 15:00" 16:00" 17:00" 18:00" 19:00" 20:00" pcs/min" 0" 10" 20" 30" 40" 50" 60" 01:00" 02:00" 03:00" 04:00" 05:00" 06:00" 07:00" 08:00" 09:00" 10:00" 11:00" 12:00" 13:00" 14:00" 15:00" 16:00" 17:00" 18:00" 19:00" 20:00" pcs/min"(from"05"to"10"min"lost"connec;on)" pcs/min" lost"connec;on" 36
  37. 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. 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. 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. 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. 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. 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. 43. Visualizing equipment operation 43 43
  44. 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. 45. Our proposal - to start from an analysis stage: 45 45
  46. 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. 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. 48. Proginta was created to be your business personal CSI (Corporate System Investigator)! 48 48

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