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Factory Performance Optimization


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Factory Performance Optimization

  1. 1. Factory Performance OptimizationMethods and tools for continuous significant improvement ofproduction and operations
  2. 2. SIMANDO is a global management and technology consulting firm with a highfocus on decision support systems and operational excellence. We partner withclient organizations in all industrial sectors to address their most importantchallenges and develop complete solutions that will enable them to achievetheir objectives and make significant improvements in their performance. Ourcustomized approach combines innovative technology, systems thinking andpassion for operational excellence. This ensures that our solutions enable ourclients to achieve sustainable competitive advantage by optimized operationsand responsiveness to the current dynamic business environment.Founded in 2009, SIMANDO is a private company with its headquarters inTimisoara, Romania. For more information, please
  3. 3. Outline About SIMANDO Services and Products Factory Performance Optimization Framework Analytical Methods for Performance Analysis & Improvement Simulation in Manufacturing Lean Six Sigma for Manufacturing 2011 3/35
  4. 4. About SIMANDOCompany founded in 2009Privately owned, LLCHeadquarters: Timisoara, ROMANIAMissionAt SIMANDO, our primary mission is to help our clients make substantial, continuous improvement in their performance. Weaccomplish this by providing them with outstanding technology solutions and consulting services to increase their excellencedegree at all levels.VisionWe strive to be the company that understands perfectly its clients objectives, always delivers quantifiable results andmaximizes the financial and trust investments made by its clients.Our Certifications Certified Six Sigma Black Belt Project Management Professional (American Society for Quality) (Project Management Institute) Certificate in Finance Oracle Certified Professional Java (New York Institute of Finance) Programmer (Oracle Corporation) 2011 4/35
  5. 5. ExpertiseModeling and Simulation Operational Excellence Systems modeling, simulation and optimization  Lean Six Sigma Transformation All simulation paradigms - discrete events, agent-  Design for Six Sigma based and system dynamics  Toyota Production System Statistics  Theory of Constraints  Product DevelopmentSoftware Applications Development Industrial Advanced algorithms and design patterns  Project and product development management Software architecture  Computer Integrated Manufacturing Software development lifecycle methodologies  Industrial engineering and factory planning Functional and object oriented programming  Manufacturing, logistics, supply chain design Database Management Systems  Transport and distribution systems MRP/ERP Systems 2011 5/35
  6. 6. Services and Products Services  Production, logistics, supply chain, healthcare engineering , modelling and simulation  Operations optimization  Lean Six Sigma/Design For Six Sigma training and implementation  Training and assistance in simulation models development  Product development and project management  Computer Integrated Manufacturing Products  Modeling and simulation component libraries  MANSIM™ - general manufacturing  SOLSIM ™ - photovoltaics manufacturing equipment  LOGSIM ™ - warehousing and logistics  Specialized software applications for Lean Six Sigma, planning and scheduling 2011 6/35
  7. 7. Factory Performance Optimization Industrial Engineering Information Six Sigma Technology Factory Performance TRIZ Lean Theory of ConstraintsSynergistic framework for continuous significant improvement of production and operations 2011 7/35
  8. 8. Factory Performance Leverage Points 1st Dimension 1st Dimension Products and processes selection Factory location, size and layout 2nd Dimension Factory workstations and machines Factory personnel Material handling systems Supplies and spare parts inventory 2nd Dimension Degree of automation 3nd Dimension Jobs starts protocol Preventive maintenance protocols Personnel allocation protocols Batching protocols Dispatching rules and scheduling Waste reduction programsThe 3 Dimensions of Manufacturing 3rd Dimension Investment Manufacturing Performance 2011 8/35
  9. 9. Factory Performance Indicators Little’s Law • Performance Curves 𝑊𝐼𝑃 = 𝐶𝑇 × 𝑇𝐻 Cycle Time vs. Loading LACTE Profit vs. Loading P-K Equation 𝐶2 + 𝐶2 𝐴𝑅 𝐸𝑃𝑇 𝜌 2(𝑚+1)−1 1 1 𝐶𝑇 𝑝𝑠 = + 2 𝑚(1 − 𝜌) 𝐸𝑃𝑅 𝑝𝑠 𝐸𝑃𝑅 𝑝𝑠 Propagation of Variability 𝜌2 𝐶 2 = 1 + 1 − 𝜌2 𝐷𝑅 𝐶2 − 1 + 𝐴𝑅 𝐶2 − 1 𝐸𝑃𝑇 𝑚 Capacity Effectiveness 𝐷 𝑊0 𝑄1 𝐸𝐶 = 1− × 𝑟𝑏 𝑁𝑊𝑃 2011 9/35
  10. 10. Why Simulation ? What? Where? Who? The future is of greater interest to me than the past, since that is where I intend to spend the ! rest of my life. When? Why? ~ Albert Einstein How?BECAUSE … SIMULATION GIVES US ANSWERS! 2011 10/35
  11. 11. Simulation Study Types Simulation StudiesSystem Design Problem Solving Continuous Improvement  New processes  Diagnosis  Opportunity definition New facilities  Problem definition  Performance measurement New concepts  Solution finding  Performance improvement Structural Design Diagnosis Opportunity Definition  Elements  Problem definition  Benchmarking  Layout  Logic Logical Design Testing Schemes Test Plans  Flow logic  What-if scenarios analysis  Feasibility check  Operations sequences  Priority rules Parametric Design Solution Validation Plan Validation  Cycle times  Sensitivity analysis  Sensitivity analysis  Reliability requirements  Velocities, rates 2011 11/35
  12. 12. Simulation Benefits Analyze the behavior of Experiment and get complex systemsMake prompt and fast feedback correct decisions Convince clients of your operational capabilities Communicate ideas efficiently and credibly Teach new Test fast, fail fast, adjust fast. concepts easily ~ Tom Peters Discover alternatives to unexpected roadblocks Save money in short and medium term Safely analyze dangerous scenarios Implement your decisions with confidence 2011 12/35
  13. 13. Applicability AreasManufacturing Lean Six Sigma Logistics and Supply Chain Key Performance Indicators  Stochastic process simulation FMEA  Statistical analysis  Transport networks design Production flow design  Variability elimination  Fleet planning & maintenance Planning and scheduling  Pull mechanism design  Warehouse design Resource estimation  QOS metrics  Operations optimization Capacity planning  Dynamic VSM  Supply chain planning Total cost of ownership  BenchmarkingHealthcare IT & Telecom Urban Development Resource estimation  Wireless networks topology  Public utilities planning QOS  Protocols design  Evacuation plans creation Epidemics dynamics  Agent-based emergent  Disaster recovery Operations optimization behaviour analysis  Anti-terrorist measures  QOS 2011 13/35
  14. 14. How We Do It ?Continuous improvement is betterthan delayed perfection. ~ Mark Twain Problem formulation Objectives and plan definition Control Model conceptualization Data collection Your trajectory to success Implementation with simulation Reporting Model development Experiments run and analysis Code verification Design of experiments Model validation 2011 14/35
  15. 15. ModelingReusable models and components encourage continuous improvement!Specializedcomponentlibraries 2D/3D customizable animationDomain specificlibrary components Fast and easy drag-and-drop layout modeling 2011 15/35
  16. 16. Simulation Models Input/Output Data CAD Run-time Charts Text Text Excel Excel XML Simulation Model XML Input Output Database Database Data Data Webservice Webservice 2011 16/35
  17. 17. Simulation in Manufacturing Creativity is thinking up new things. Innovation is doing new things. Assembly line simulation model ( ) ~ Ted Levitt 2011 17/35
  18. 18. Simulation in Manufacturing Optimal plant layout ? 2011 18/35
  19. 19. Simulation in Manufacturing Detection and management of bottlenecks ? 120 sec 30 sec 120 sec Rework Loop 120 sec A 60 sec 120 sec Rework Loop B 60 sec 120 sec 60 sec 120 sec Rework Loop 2011 19/35
  20. 20. Simulation in Manufacturing Equipment ROI Calculation Golden Equipment Silver Equipment Bronze Equipment Cycle Time ………....... 30 sec Cycle Time ………....... 60 sec Cycle Time ………....... 80 sec MTBF_1 …..………… 5000 hrs MTBF_1 …..………… 4000 hrs MTBF_1 …..………… 5000 hrs MTTR_1 ……………........ 1 hrs MTTR_1 ……………........ 2 hrs MTTR_1 ……………........ 1 hrs MTBF_2 ……………… 7500 hrs MTBF_2 ……………… 8500 hrs MTBF_2 ……………… 8000 hrs MTTR_2 ………………… 0.5 hrs MTTR_2 ………………… 3 hrs MTTR_2 ………………… 2 hrs Yield ………………………. 99.6% Yield ………………………. 98.9% Yield ………………………. 97.2% Energy …………………. 10 kWh Energy …………………. 8 kWh Energy …………………. 14 kWh Price …………….… $1,500,000 Price ……………….… $850,000 Price ……………….… $450,000 2011 20/35
  21. 21. Simulation in Manufacturing Total Cost of Ownership 𝑻𝒐𝒕𝒂𝒍 𝑪𝒐𝒔𝒕𝒔 ($) 𝑻𝑪𝑶 = 𝑻𝒐𝒕𝒂𝒍 𝑵𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝑮𝒐𝒐𝒅 𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒔 𝑶𝒗𝒆𝒓 𝑺𝒚𝒔𝒕𝒆𝒎′ 𝒔 𝑳𝒊𝒇𝒆 𝑻𝒐𝒕𝒂𝒍 𝑪𝒐𝒔𝒕𝒔($) = 𝑭($) + 𝑳($) + 𝑹($) + 𝒀($) Where: F ($) = fixed costs for purchasing the system L ($) = fully burdened labor cost R ($) = recurring costs (consumables, maintenance, specialized support etc.) Y ($) = yield loss cost 𝒀($) = 𝑵 ∗ 𝑷($) Where: N = number of defective product entities P ($) = value of the product entities in the specific production stage 2011 21/35
  22. 22. Simulation in Manufacturing Total Cost of Ownership 𝑻𝒐𝒕𝒂𝒍 𝑵𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝑮𝒐𝒐𝒅 𝑷𝒓𝒐𝒅𝒖𝒄𝒕 𝑬𝒏𝒕𝒊𝒕𝒊𝒆𝒔 = 𝑳 ∗ 𝑻 ∗ 𝒀 ∗ 𝑼 𝑷𝒓𝒐𝒅𝒖𝒄𝒆𝒅 𝑶𝒗𝒆𝒓 𝒕𝒉𝒆 𝑺𝒚𝒔𝒕𝒆𝒎′ 𝒔 𝑳𝒊𝒇𝒆 Where: L = lifetime of the production system T = throughput rate Y = composite yield U = equipment utilization Where: SM = scheduled maintenance USM = unscheduled maintenance A = assist time S = standby time Q = qualification time 𝑺𝑴 + 𝑼𝑺𝑴 + 𝑨 + 𝑺 + 𝑸 𝑼= 𝟏 − H = total number of scheduled 𝑯 production hours per week 2011 22/35
  23. 23. Simulation in Manufacturing Total Cost of Ownership 𝑭 $ + 𝑳 $ + 𝑹 $ + 𝒀($) 𝑻𝑪𝑶 = 𝑳∗ 𝑻∗ 𝒀∗ 𝑼  All variable/probabilistic elements in the formula can be tracked and calculated by simulating realistically the system under study. Due to variable costs and probabilistic events associated with complex production systems, only simulation-based methods of calculating the TCO can provide correct and accurate estimates therefore. 2011 23/35
  24. 24. Simulation in Manufacturing Detailed modeling of components and manufacturing scenarios Accurate timing and behavior of the modeled systems Manual work, worker-machine and fully automated manufacturing modeling possibilities Any type of production environment: jobbing, intermittent, mass production Resources behavior controlled by highly detailed state machines according to machine specs Any type of Key Performance Indicator can be defined and tracked Ramp-up scenarios analysis Inbound/outbound logistics and supply chain analysis and integration Declustering of job starts and maintenance Load management scheme design 2011 24/35
  25. 25. Simulation in Manufacturing Line balancing and materials handling  Dispatching rules:  critical ratio, shortest processing time, FIFO, due date, etc.  Conveyors vs. Automated Guided Vehicles vs. Humans  Material flow optimization  Buffers capacities & policies (FIFO, LIFO, FEFO, custom) 2011 25/35
  26. 26. Simulation in Manufacturing Lean manufacturing speed and quantity control and Six Sigma quality Simulation offers support in finding solutions to reduce:  Transport time  Inventory and buffers  Employee motion  Waiting  Overproduction  Defects 2011 26/35
  27. 27. Simulation in Manufacturing Optimization of Key Performance Indicators  Work in process (WIP)  Load-adjusted cycle time efficiency  Manufacturing lead time  Equipment cycle times  Queuing, blocking, waiting, transport time  Throughput  Equipment and human resources utilization  Energy, consumables, spare parts, waste  Spares and supplies inventory levels and variability 2011 27/35
  28. 28. Simulation in Manufacturing Design and optimization of complex equipment  Utilization, throughput, cycle time for cluster tools  Equipment with M:N mapping of process resources to handling units  Optimization of handling units movement and process resources allocation Process Process Process Chambers Chamber Chamber Process Chamber Multiple handling units on the same rail IO Ports Process Chamber Process Process Chamber Chamber 2011 28/35
  29. 29. Simulation in Manufacturing Production planning and scheduling Feedback Simulation Production Forecast Planning 2011 29/35
  30. 30. Simulation in Lean Implementation Static Value Stream Map Nature does constant value stream mapping – its called evolution. ~ Carrie Latet Dynamic Value Stream Map (Simulation) 2011 30/35
  31. 31. Simulation in Lean Implementation Single piece flow vs. batch processing analysis Kanban (pull) mechanism design Production leveling (heijunka) Cycle, safety and buffer stocks calculation Just In Time (JIT), Just in Sequence (JIS) inventory strategy design Cellular operations design Overall Equipment Effectiveness (OEE) calculation Relation between demand and takt time analysis 2011 31/35
  32. 32. Simulation in Lean Six Sigma Define Define Define Define Project Scope Lean Measures Structure and Variables Develop Develop Identify Sources Measure Current State VSM Develop Simulation Model Dynamic VSM of Variation and Waste Analize Develop DOE Plan Run Simulation Experiments Analyze Process Flow Apply Develop Improve Optimize Process Parameters Lean Techniques Validate Improvement Future State VSM Test Implement Monitor Control Develop Control Strategy Control Plans Control Plans Performance Over Time Simulation-based Lean Six Sigma Project Roadmap 2011 32/35
  33. 33. Design For Six Sigma Cost vs. Impact Cost Potential is negative (Impact < Cost) Potential is positive (Impact > Cost) Impact Time Design Produce/Build Deliver Support Impact of design stages on life cycle 2011 33/35
  34. 34. Simulation in Design For Six Sigma Identify Simulation-based DFSS Project Roadmap Model building Data collection Conceptualize Simulation model No Verified ? Optimize No Yes Valid ? Model analysis Validate Conclusions and reporting 2011 34/35
  35. 35. Thank you for your attention! SIMANDO Team SIMANDO LLC 9 Republicii Blvd Timisoara, TM 300159 ROMANIA Tel: +40 356 172 021 Fax: +40 356 172 017 E-mail: Web: