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Study on Improving Throughput Time through
Value Stream Mapping
Alwin P Thomas
CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT
L e a n O p e r a t i o n a n d
S y s t e m s
SummerInternshipProject
Apollo Tyres Ltd
@
2013
Company Profile
Apollo Tyres Limited
World's 7th biggest tyre manufacturer, with annual consolidated revenues
of Rs 121.5 billion (US$ 2.5 billion) in 2011.
Acquired US based Cooper Tyres & Tyre Company valued USD 2.5 billion
The unit at Kalamaserry produces more than 25 types of
tyres. But the unit is turning out to a full fledge unit for
producing OHT (Off-Highway Tyres) in next 5 years.
2013
1
L e a n O p e r a t i o n a n d
S y s t e m s
Aim of Study
To improve the throughput time by studying the
values stream mapping of tyre manufacturing.
Objective of Study
To map the value stream of tyre manufacturing
To identify factors affecting throughput time
To reduce throughput time
Summer Internship
Project
2013
2
L e a n O p e r a t i o n a n d
S y s t e m s
L e a n O p e r a t i o n a n d
S y s t e m s
Introduction
Value Stream Mapping is a tool that helps people to understand the
flow of material and information, as a product makes it way through the value
stream.
Summer Internship
Project
This tool is used primarily to identify, demonstrate and decrease waste,
as well as create flow in the manufacturing process.
Manufacturing throughput time is defined as the length of time
between the release of an order to the factory floor and its receipt into
finished goods inventory or its shipment to the customer.
2013
3
Manufacturing Throughput Time is
the sum of Process Time, Move
Time, Queue Time
VSM’s can be created using
Microsoft Visio & Microsoft Excel
Summer Internship
Project Study Approach
2013
4
1. Study the Manufacturing Process and Parts produced
Mixing & Extrusion Tyre Building & Curing Inspection & Final Finish
Summer Internship
Project Study Approach
2013
5
L e a n O p e r a t i o n a n d
S y s t e m s
Parts of Tyre
Identify problem areas & Create
Future State VSM
Implement action plans with respect
to the Future state VSM
Map the Process & Create Current
State VSM
Define Product
Value Stream Mapping
(VSM)
12.4-28PR krishak premium tyre
2. Identify the steps to VSM
Summer Internship
Project Study Approach
2013
6
L e a n O p e r a t i o n a n d
S y s t e m s
Summer Internship
Project Study Approach
2013
7
L e a n O p e r a t i o n a n d
3. Find the parameters required to map VSM
Parameters
Manpower
No. Of Shifts
Utilization %
Setup Time
Time Available
Cycle Time
Databox
Sign used in VSM
Factors Affecting Throughput Time
Process time/cycle time Handling Time Ageing Time Setup Time Transportation Time
Summer Internship
Project Data Analysis
Utilization
%
8
Section
Time
Available
(hrs)
Schedule
d (S)
Breakdow
n (B)
Running
Time (R =
S-B)
Utilitisatio
n (R/S)
Dual Extruder 672 496.67 55.6 441 89%
8" Extruder 672 208.83 10.33 198.5 95%
Fabric Calendaring 672 486.92 26.17 460.75 95%
Recoat
Calendaring 630 547.92 15.25 532.67 97%
VBC 672 571.25 41.75 529.5 93%
HBC 1344 819.84 12.33 807.5 98%
Bead Winding 672 664 188 476 72%
Slitter 630 305.5 0 305.5 100%
Squeegee
Lamination Nil 87%
Bead Apexing 1260 576.5 98.25 478.25 83%
Band Building 3150 3148.33 0 3148.33 100%
Bead Flipping 1890 860.75 85.42 837.5 97%
Tyre Building 4032 2688 23.25 2664.75 99%
Curing 14112 10943.48 1911.23 9032.25 83%
Tyre Trimming
Based on requirementTyre Inspection
Tyre Repair
This represents what % of machine is
utilized in each process with respect to
schedule and breakdown hours..
Utilization Calculation
Retrieved from SAP Calculated
Time (Hrs) available to produce the
demanded output part of tyre from each
process section in a month.
Time required to produce the parts of tyre
from each process, after monthly holidays
and break time(30min/shift)
Time Available = 24hrs * No. Of Days
Scheduled
Days Scheduled = 28
Time Available
Schedule Time
CycleTime
Ageing
Time
Summer Internship
Project Data Analysis 9
Time required to complete a task from start to
finish. With the help of line speed obtained from
the machine spec. We can find the cycle time.
Cycle Time (CT)
Process
Cycle Time
(min)
Setup
Time
(min)
Manpower Utilization %
No. Of Total
shift
Available
Total Shifts
worked
Dual Extrusion 0.361 0.15 14 85 84 55.125
8" Extrusion 0.138 0.2 8 95 84 24.8125
Fabric Calendaring 20.3 2.2 10 97 84 57.59375
Recoat Calendaring (per roll) 1.5 1.6 3 97 78.75 66.58375
VBC 4.18 0.25
8
93 84 66.1875
HBC 1.16 0.25 98 168 100.9375
Bead Winding 0.34 0.1 2 72 84 59.5
Slitter 1.33 0.18 2 100 78.75 38.1875
Squeegee Lamination (per
roll) 5.23 0.25 2 87 nil nil
Bead Apexing 1.25 0.1 2 83 157.5 59.78125
Band Building 0.69 0.15 1 100 393.75 393.5413
Bead Flipping 0.43 0.12 1 97 236.25 104.6875
Tyre Building 9 0.55 5 99 504 333.0938
Curing 55 2.5 2 83 1764 1129.031
Tyre Trimming 1.08 0.12 1 nil nil nil
Tyre Inspection 0.9 0.2 2 nil nil nil
Tyre Repair 6.97 0.2 2 nil nil nil
Dual Extrusion Process
Line Speed = 7.1metre/min
Tread required for 1 tyre = 2.56m
Cycle time = 2.56/7.1 = 0.361min
8 inch Extrusion Process
Line Speed = 16m/min
Sidewall required = 2.22m
Cycle time = 2.22/16 = 0.138
CTcalculation
Utilization
%
CycleTime
Ageing
Time
Time required to prepare the
machine/process for the production. It is a
part of cycle time.
Setup Time
Summer Internship
Project Data Analysis 10
Utilization
%
CycleTime
Ageing
Time
Section
Handling
Time (min)
Transportation
time (min)
Ageing Time
Dual Extrusion 1.2 1.3 4hrs
8" Extrusion 1.2 1.1 6hrs
Fabric Calendaring 2.3 1.35 Nil
Recoat Calendaring
(per roll)
1.2 0.55 Nil
VBC 0.55 0.5 Nil
HBC 0.5 1 Nil
Bead Winding 0.5 0.55 Nil
Slitter 1 1.2 Nil
Squeegee Lamination
(per roll)
1.1 1.5 Nil
Bead Apexing 0.45 0.5 Nil
Band Building 1.2 1.2 Nil
Bead Flipping 0.55 1.1 Nil
Tyre Building 1.3 3.2 Nil
Curing 2.3 2.2 5 min
Tyre Inspection 1.1 1.1 Nil
Tyre Trimming 0.55 1.1 Nil
Tyre Repair 1.3 1.3 Nil
Time required to heal the raw material produced
from the specific machine. Eg: After curing
process, the treated tyre cannot be used
suddenly after the process, a healing time is
required.
Ageing Time
Time required to handle the raw material before
and after a process. Eg; time is required to
handle the nylon roll from storage to the setup
place.
Handling Time
FieldStudy
Summer Internship
ProjectData Interpretation
2013
SIP
Current State VSM
From the data analysis, we can map the current state VSM and assess the
throughput time.
Throughput time = VA time + non-VA time
= 1hr 44.55min + 14 hr 30.10min
= 15hr 74.65min
Cycle Time Setup time
Transportation time
Handling time
Ageing time
Value Added Time Non-Value Added Time
Keywords
VA time – Value Added Time
TTC – Current Throughput Time
TTF – Future Throughput Time
It was found out that the cycle time of fabric calendaring was high.
The non-VA time was also high for the same, which delayed the following
processes.
Summer Internship
ProjectRecommendation
2013
SIP
L e a n O p e r a t i o n a n d
S y s t e m s
Increase the line speed of Fabric Calendaring machine.
The speed can be increased from 40 metre/min to 46 metre/min. This will reduce the cycle
time.
Modify the 3-rolled calendaring machine to 4-rolled calendaring machine.
The cycle time will be reduced by more than 50%. It was analysed that time taken to
calendar one dipped roll is 86 min through a 3-rolled calendaring process. If the machine is
changed to a 4-rolled machine, the time taken for the process will be reduced to 75min.
Modify the tyre building machine to turret type tyre building machine.
By installing the machine, the process like band building, 50% of squeegee lamination
process, and the breaker lay-up can be discarded. Thus reduces the overall lead time, as well
as the manpower.
By proper planning, the PPC can forecast the electrical and mechanical breakdowns by
understanding the machine use and its nature. By doing such, the process can be continued
without making the band building section to delay.
Summer Internship
ProjectImplementation of Action Plan
2013
SIP
L e a n O p e r a t i o n a n d
S y s t e m s
Future State VSM
After the recommendation that can be suggested , we can map the future
state VSM and assess the throughput time. Also we can find the time saved
in each process.
Throughput time = VA time + non-VA time
= 1hr 28.96min + 14hr 17.65min
= 15hr 46.61min
Cycle Time Setup time
Transportation time
Handling time
Ageing time
Value Added Time Non-Value Added Time
Reduced throughput time
= TTC - TTF
= 15hr 74.65min – 15hr 46.61min
= 28.04min
Summer Internship
ProjectCurrent State Value Strea Map
2013
SIP
L e a n O p e r a t i o n a n d
S y s t e m s
Summer Internship
ProjectFuture State Value Stream Map
2013
SIP
L e a n O p e r a t i o n a n d
S y s t e m s
Summer Internship
Project Conclusion
2013
SIP
L e a n O p e r a t i o n a n d
S y s t e m s
The value stream map thus helped to identify the factors affecting the throughput time and
helped to reduce the same through proper action plan.
The various factors that affected the throughput time were studied through VSM and
necessary recommendations were suggested to improve the throughput time.
It can be concluded that the company strives for improved performance and effectiveness,
and by analysing the throughput time the company can forecast the necessary action plans.
Company profile retrieved from http://www.apollotyres.com/india/aboutus-overview.aspx
Hines, P., and Rich, N., (1997), "The Seven Value Stream Mapping Tools.
Houtzeel, A. (1982). “Computer integrated manufacturing.” Proc. Of 1982 Academic-Practitioners Liaison
Operations Mgmt. Workshop, American Production and Inventory Control Society, pp23-37.
Jazar, Reza N. (2008). Vehicle dynamics: theory and applications. Springer. p. 11. ISBN
978-0-387-74243-4. Retrieved 2011-03-16. "Inner layers are made of different fabrics, called plies”.
Suri, R.; Wemmerlöv, U.; Rath, F.; Gadh, R.; and Veeramani, R. (1996). “Practical issues in implementing quick
response manufacturing: insights from 14 projects with industry.” Proc. of Mfg. and Service Operations Mgmt.
(MSOM) Conf., Dartmouth College.
Tyre manufacturing retrieved from http://www.maxxis.com/AutomobileLight-Truck/How-a-Tire-is-
Made.aspx
Werner Obrecht, Jean-Pierre Lambert, Michael Happ, Christiane Oppenheimer-Stix, John Dunn and Ralf
Krüger (2012), "Emulsion Rubbers" in Ullmann's Encyclopedia of Industrial Chemistry
Reference
A bad system will defeat a good person every time
Edwards Deming
Thank You
2 0 1 3
Lean Operation and
C U I M
Alwin P Thomas
1220206

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Study on Improving Throughput Time through Value Stream Mapping

  • 1. Study on Improving Throughput Time through Value Stream Mapping Alwin P Thomas CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT L e a n O p e r a t i o n a n d S y s t e m s SummerInternshipProject Apollo Tyres Ltd @ 2013
  • 2. Company Profile Apollo Tyres Limited World's 7th biggest tyre manufacturer, with annual consolidated revenues of Rs 121.5 billion (US$ 2.5 billion) in 2011. Acquired US based Cooper Tyres & Tyre Company valued USD 2.5 billion The unit at Kalamaserry produces more than 25 types of tyres. But the unit is turning out to a full fledge unit for producing OHT (Off-Highway Tyres) in next 5 years. 2013 1 L e a n O p e r a t i o n a n d S y s t e m s
  • 3. Aim of Study To improve the throughput time by studying the values stream mapping of tyre manufacturing. Objective of Study To map the value stream of tyre manufacturing To identify factors affecting throughput time To reduce throughput time Summer Internship Project 2013 2 L e a n O p e r a t i o n a n d S y s t e m s
  • 4. L e a n O p e r a t i o n a n d S y s t e m s Introduction Value Stream Mapping is a tool that helps people to understand the flow of material and information, as a product makes it way through the value stream. Summer Internship Project This tool is used primarily to identify, demonstrate and decrease waste, as well as create flow in the manufacturing process. Manufacturing throughput time is defined as the length of time between the release of an order to the factory floor and its receipt into finished goods inventory or its shipment to the customer. 2013 3 Manufacturing Throughput Time is the sum of Process Time, Move Time, Queue Time VSM’s can be created using Microsoft Visio & Microsoft Excel
  • 5. Summer Internship Project Study Approach 2013 4 1. Study the Manufacturing Process and Parts produced Mixing & Extrusion Tyre Building & Curing Inspection & Final Finish
  • 6. Summer Internship Project Study Approach 2013 5 L e a n O p e r a t i o n a n d S y s t e m s Parts of Tyre
  • 7. Identify problem areas & Create Future State VSM Implement action plans with respect to the Future state VSM Map the Process & Create Current State VSM Define Product Value Stream Mapping (VSM) 12.4-28PR krishak premium tyre 2. Identify the steps to VSM Summer Internship Project Study Approach 2013 6 L e a n O p e r a t i o n a n d S y s t e m s
  • 8. Summer Internship Project Study Approach 2013 7 L e a n O p e r a t i o n a n d 3. Find the parameters required to map VSM Parameters Manpower No. Of Shifts Utilization % Setup Time Time Available Cycle Time Databox Sign used in VSM Factors Affecting Throughput Time Process time/cycle time Handling Time Ageing Time Setup Time Transportation Time
  • 9. Summer Internship Project Data Analysis Utilization % 8 Section Time Available (hrs) Schedule d (S) Breakdow n (B) Running Time (R = S-B) Utilitisatio n (R/S) Dual Extruder 672 496.67 55.6 441 89% 8" Extruder 672 208.83 10.33 198.5 95% Fabric Calendaring 672 486.92 26.17 460.75 95% Recoat Calendaring 630 547.92 15.25 532.67 97% VBC 672 571.25 41.75 529.5 93% HBC 1344 819.84 12.33 807.5 98% Bead Winding 672 664 188 476 72% Slitter 630 305.5 0 305.5 100% Squeegee Lamination Nil 87% Bead Apexing 1260 576.5 98.25 478.25 83% Band Building 3150 3148.33 0 3148.33 100% Bead Flipping 1890 860.75 85.42 837.5 97% Tyre Building 4032 2688 23.25 2664.75 99% Curing 14112 10943.48 1911.23 9032.25 83% Tyre Trimming Based on requirementTyre Inspection Tyre Repair This represents what % of machine is utilized in each process with respect to schedule and breakdown hours.. Utilization Calculation Retrieved from SAP Calculated Time (Hrs) available to produce the demanded output part of tyre from each process section in a month. Time required to produce the parts of tyre from each process, after monthly holidays and break time(30min/shift) Time Available = 24hrs * No. Of Days Scheduled Days Scheduled = 28 Time Available Schedule Time CycleTime Ageing Time
  • 10. Summer Internship Project Data Analysis 9 Time required to complete a task from start to finish. With the help of line speed obtained from the machine spec. We can find the cycle time. Cycle Time (CT) Process Cycle Time (min) Setup Time (min) Manpower Utilization % No. Of Total shift Available Total Shifts worked Dual Extrusion 0.361 0.15 14 85 84 55.125 8" Extrusion 0.138 0.2 8 95 84 24.8125 Fabric Calendaring 20.3 2.2 10 97 84 57.59375 Recoat Calendaring (per roll) 1.5 1.6 3 97 78.75 66.58375 VBC 4.18 0.25 8 93 84 66.1875 HBC 1.16 0.25 98 168 100.9375 Bead Winding 0.34 0.1 2 72 84 59.5 Slitter 1.33 0.18 2 100 78.75 38.1875 Squeegee Lamination (per roll) 5.23 0.25 2 87 nil nil Bead Apexing 1.25 0.1 2 83 157.5 59.78125 Band Building 0.69 0.15 1 100 393.75 393.5413 Bead Flipping 0.43 0.12 1 97 236.25 104.6875 Tyre Building 9 0.55 5 99 504 333.0938 Curing 55 2.5 2 83 1764 1129.031 Tyre Trimming 1.08 0.12 1 nil nil nil Tyre Inspection 0.9 0.2 2 nil nil nil Tyre Repair 6.97 0.2 2 nil nil nil Dual Extrusion Process Line Speed = 7.1metre/min Tread required for 1 tyre = 2.56m Cycle time = 2.56/7.1 = 0.361min 8 inch Extrusion Process Line Speed = 16m/min Sidewall required = 2.22m Cycle time = 2.22/16 = 0.138 CTcalculation Utilization % CycleTime Ageing Time Time required to prepare the machine/process for the production. It is a part of cycle time. Setup Time
  • 11. Summer Internship Project Data Analysis 10 Utilization % CycleTime Ageing Time Section Handling Time (min) Transportation time (min) Ageing Time Dual Extrusion 1.2 1.3 4hrs 8" Extrusion 1.2 1.1 6hrs Fabric Calendaring 2.3 1.35 Nil Recoat Calendaring (per roll) 1.2 0.55 Nil VBC 0.55 0.5 Nil HBC 0.5 1 Nil Bead Winding 0.5 0.55 Nil Slitter 1 1.2 Nil Squeegee Lamination (per roll) 1.1 1.5 Nil Bead Apexing 0.45 0.5 Nil Band Building 1.2 1.2 Nil Bead Flipping 0.55 1.1 Nil Tyre Building 1.3 3.2 Nil Curing 2.3 2.2 5 min Tyre Inspection 1.1 1.1 Nil Tyre Trimming 0.55 1.1 Nil Tyre Repair 1.3 1.3 Nil Time required to heal the raw material produced from the specific machine. Eg: After curing process, the treated tyre cannot be used suddenly after the process, a healing time is required. Ageing Time Time required to handle the raw material before and after a process. Eg; time is required to handle the nylon roll from storage to the setup place. Handling Time FieldStudy
  • 12. Summer Internship ProjectData Interpretation 2013 SIP Current State VSM From the data analysis, we can map the current state VSM and assess the throughput time. Throughput time = VA time + non-VA time = 1hr 44.55min + 14 hr 30.10min = 15hr 74.65min Cycle Time Setup time Transportation time Handling time Ageing time Value Added Time Non-Value Added Time Keywords VA time – Value Added Time TTC – Current Throughput Time TTF – Future Throughput Time It was found out that the cycle time of fabric calendaring was high. The non-VA time was also high for the same, which delayed the following processes.
  • 13. Summer Internship ProjectRecommendation 2013 SIP L e a n O p e r a t i o n a n d S y s t e m s Increase the line speed of Fabric Calendaring machine. The speed can be increased from 40 metre/min to 46 metre/min. This will reduce the cycle time. Modify the 3-rolled calendaring machine to 4-rolled calendaring machine. The cycle time will be reduced by more than 50%. It was analysed that time taken to calendar one dipped roll is 86 min through a 3-rolled calendaring process. If the machine is changed to a 4-rolled machine, the time taken for the process will be reduced to 75min. Modify the tyre building machine to turret type tyre building machine. By installing the machine, the process like band building, 50% of squeegee lamination process, and the breaker lay-up can be discarded. Thus reduces the overall lead time, as well as the manpower. By proper planning, the PPC can forecast the electrical and mechanical breakdowns by understanding the machine use and its nature. By doing such, the process can be continued without making the band building section to delay.
  • 14. Summer Internship ProjectImplementation of Action Plan 2013 SIP L e a n O p e r a t i o n a n d S y s t e m s Future State VSM After the recommendation that can be suggested , we can map the future state VSM and assess the throughput time. Also we can find the time saved in each process. Throughput time = VA time + non-VA time = 1hr 28.96min + 14hr 17.65min = 15hr 46.61min Cycle Time Setup time Transportation time Handling time Ageing time Value Added Time Non-Value Added Time Reduced throughput time = TTC - TTF = 15hr 74.65min – 15hr 46.61min = 28.04min
  • 15. Summer Internship ProjectCurrent State Value Strea Map 2013 SIP L e a n O p e r a t i o n a n d S y s t e m s
  • 16. Summer Internship ProjectFuture State Value Stream Map 2013 SIP L e a n O p e r a t i o n a n d S y s t e m s
  • 17. Summer Internship Project Conclusion 2013 SIP L e a n O p e r a t i o n a n d S y s t e m s The value stream map thus helped to identify the factors affecting the throughput time and helped to reduce the same through proper action plan. The various factors that affected the throughput time were studied through VSM and necessary recommendations were suggested to improve the throughput time. It can be concluded that the company strives for improved performance and effectiveness, and by analysing the throughput time the company can forecast the necessary action plans.
  • 18. Company profile retrieved from http://www.apollotyres.com/india/aboutus-overview.aspx Hines, P., and Rich, N., (1997), "The Seven Value Stream Mapping Tools. Houtzeel, A. (1982). “Computer integrated manufacturing.” Proc. Of 1982 Academic-Practitioners Liaison Operations Mgmt. Workshop, American Production and Inventory Control Society, pp23-37. Jazar, Reza N. (2008). Vehicle dynamics: theory and applications. Springer. p. 11. ISBN 978-0-387-74243-4. Retrieved 2011-03-16. "Inner layers are made of different fabrics, called plies”. Suri, R.; Wemmerlöv, U.; Rath, F.; Gadh, R.; and Veeramani, R. (1996). “Practical issues in implementing quick response manufacturing: insights from 14 projects with industry.” Proc. of Mfg. and Service Operations Mgmt. (MSOM) Conf., Dartmouth College. Tyre manufacturing retrieved from http://www.maxxis.com/AutomobileLight-Truck/How-a-Tire-is- Made.aspx Werner Obrecht, Jean-Pierre Lambert, Michael Happ, Christiane Oppenheimer-Stix, John Dunn and Ralf Krüger (2012), "Emulsion Rubbers" in Ullmann's Encyclopedia of Industrial Chemistry Reference
  • 19. A bad system will defeat a good person every time Edwards Deming Thank You 2 0 1 3 Lean Operation and C U I M Alwin P Thomas 1220206

Editor's Notes

  1. OHT – They are used by machines & automobiles used in industrial, construction & earth movers.Company acquired cooper tyres worth USD 2.5 billion. But the shares have plunged to more than 36%in 2weeks.Neerja kanwar, MD, expect the deal to be completed by Oct 2013.In 1995, apollo acquired Premier tyres @kalamasery and now the unit produces more than 25 types of tyres. But forecasting the demand for OHT tyres, the unit is turning out to a fully fledged production unit of OHT tyres. Currently Chennai unit and Pune unit are only producing OHT tyres.
  2. VSM is a lean technique or tool which is used to identify & reduce waste in the production. It helps to understand the flow of material and process involved.Manufacturing throughput time is time required for a product to pas thru a process (from raw materials to finished goods).