WHEEL OF FORTUNE Operational Benefits of Product Wheel Scheduling - PowerPoint PPT Presentation

WHEEL OF FORTUNE Operational Benefits of Product Wheel Scheduling Peter L. King – Zinata Alan Nall - Zinata

APICS 2017 Session Evaluation Visit www.apics.org/Monday or download the APICS2017 app 2 #APICS2017

PETER L KING peter.king@Zinata.com  BS Electrical Engineering – Virginia Tech  DuPont Company – 42 years  R & D – 9 years  Project management – 15 years Lean manufacturing & supply chain consulting – 18 years   Lean Dynamics – 2007 to present  Consult with companies in process industries  Zinata – 2014 to present  Consult on Product Wheel design/implementation , Value Stream Mapping  Lean for the Process Industries – Productivity Press, 2009  The Product Wheel Handbook – Productivity Press, 2013  Value Stream Mapping for the Process Industries – Productivity Press, 2015  Several articles in IE Magazine, APICS Magazine, Target (AME)  Frequent speaker at IIE, APICS, ASQ, OpEx conferences 3 #APICS2017

AGENDA  Why Product Wheels?  Product Wheel concept  Wheel Design Basics  Case study - vitamin pill packaging  Making it real – simplifying daily operation  Other prominent Product Wheel users  Q & A 4 #APICS2017

IT HAS OFTEN BEEN SAID THAT ….. 75% of the problems on the plant floor are caused by processes outside the plant floor 5 #APICS2017

PRODUCTION SCHEDULING IS OFTEN THE CULPRIT Production scheduling is often based on what needs to be produced within the next planning period  Without any view of the full manufacturing system  Without an understanding of the full product line-up Therefore opportunities for optimization are often missed  Opportunities to standardize schedules  Opportunities to standardize sequences  Opportunities to simplify changeovers  Opportunities to optimize frequency of low volume items 6 #APICS2017

THE SOLUTION PRODUCT WHEELS  Allow you to optimize production scheduling  In an integrated, holistic design process  In a way that has enabled major manufacturers to save millions $$  Higher throughput – higher revenue  Reduced inventories – reduced working capital = $$  Improved customer service performance – increased market share  With increased stability – reducing the chaos  With increased predictability – better forward planning 7 #APICS2017

PRODUCT WHEEL CONCEPT  A regularly repeating PRODUCTS (SPOKES) sequence of the production of the various products K A J  The overall cycle time is fixed B The cycle time is optimized o I based on business C priorities D H  The sequence is fixed E G F The sequence is optimized o for minimum changeover loss (time or material) CHANGE-OVERS 8 #APICS2017

PRODUCT WHEEL CONCEPT  Spokes can have different lengths, based on the Demand for each product  The amount actually produced 19097 53124 53125 53129 55412 41628 51381 can vary from cycle to cycle, based 46077 13412 on actual consumption 19852 3809 19955 30282  Some low-volume products may 53181 13045 not be made every cycle 45211 55347  When they are made, it’s always 30173 at the same point in the sequence 57601 32689 13775  Make-to-order and Make-to- stock products can be intermixed LINE 3 - CYCLE 1 on a wheel 9 #APICS2017

PRODUCT WHEEL CONCEPT WHEEL TIME ONE CYCLE, ONE REVOLUTION PRODUCT A A BREATHING ROOM H CHANGEOVER G BATCHES B F SPOKE, . CAMPAIGN E C PRODUCT F D CHANGEOVER 10 #APICS2017

PRODUCT WHEEL APPLICABILITY  Product wheels can be applied to a single major piece of process equipment  A resin reactor  A paint mixer  A vitamin tablet compression machine  A ketchup homogenizer  Or to an entire line  A shampoo bottling line  A potato chip packaging line. 11 #APICS2017

PRODUCT WHEEL APPLICABILITY  Product wheels support a Pull replenishment system  Each spoke is designed based on average historical demand or on the forecast  What is actually produced on any spoke is just enough to replenish what has been consumed from inventory  Low volume products won’t be made unless needed  Product wheels can be employed in a Make-to-Stock (MTS) or a Make-to-Order (MTO) environment  MTS and MTO products can be made on the same wheel 12 #APICS2017

2 ∗ 𝐷𝑃𝐷 ∗ 𝐸 𝐹𝑃𝑅 = 𝑊 ∗ 𝑠 ∗ (1 − 𝐸 𝑄𝑆 ) PRODUCT WHEEL DESIGN 13 #APICS2017

PRODUCT WHEELS ARE BASED ON A THOROUGH ANALYSIS OF … Your process as an integrated system SUPPLIER 1 CUSTOMERS, DISTRIBUTORS Order Lead 1 week Time Quantity/time 5.4 M #/Mo 6 # SKUs 7.5 K #/Hr TAKT Lead time Exp 4 Days Frequency 5 Trucks/Day BONDING WRAPPING Lot Size 36 K#/Truck SHEET CASTING SLITTING INSPECTION PACKAGING (HEAT TREATING) (3) (3) (1) 2 Days Transp time 6 (3) 3 2 LABELING 3 3 RAIL CARS 3 M# 2.6 M# 8.9 M # Invtry Invtry Invtry 60 K # Invtry Max Demo Max Demo Max Demo Max Demo Max Demo SUPPLIER 2 18.6 18 51 14.5 15 Rate Rate Rate Days 16 Days 15 Hours 8 Days 50 1.2 M # Rate Rate Invtry 13.8 Eff Capac 18 36 10.6 Eff Capac Eff Capac 8.25 Eff Capac Eff Capac Frequency 1 Car/Day 50 100 2,000 Order Lead 5.6 # SKUs # SKUs # SKUs 1000 # SKUs 1 Week Days TAKT 7.5 Time TAKT 8.1 7.5 TAKT 7.5 TAKT 8.3 TAKT Lot Size 190 K # 6 4 # SKUs # SKUs K #/Hour K #/Hour K #/Hour K #/Hour K #/Hour Transp time 7 Days 78% 59% Utilization 91% Utilization 42% 21% Utilization Utilization Utilization 15 Min 6 min Lead time 15 Min Lead time 18 Min Lead time Lead time Lead time 8 Min 92% 100% Yield 93% 98% Yield Yield Yield 100% Yield 85% 72% 100% 70% Reliability Reliability 82% Reliability Reliability Reliability 55% 100% OEE 73% OEE 74% OEE OEE OEE 70% # SKUs 50 100 # SKUs 1000 # SKUs 1000 # SKUs 2000 # SKUs 1 roll 1 roll Batch size 1 roll Batch size 1 Slit Roll Batch size Batch size Batch size 1 Slit Roll 7 days N/A CYCLE 9 days CYCLE 13 days CYCLE CYCLE CYCLE N/A C/O time 1 hr 45 Min C/O time 5 Min C/O time 0 C/O time 0 C/O time 1 Roll 0 0 C/O loss C/O loss ~ 0 C/O loss ~ 0 C/O loss C/O loss Avail time 168 hr/wk Avail time 168 hr/wk Avail time 168 hr/wk Avail time 168 hr/wk Avail time 168 hr/wk Shift schd 3 x 8 x 7 Shift schd 3 x 8 x 7 Shift schd 3 x 8 x 7 Shift schd 3 x 8 x 7 Shift schd 3 x 8 x 7 14 #APICS2017

PRODUCT WHEELS ARE BASED ON A THOROUGH ANALYSIS OF … HOURS HOURS BOTTLE BOTTLE TYPE DESSICANT # BOTTLE HOURS PER ITEM FCST AVERAGE TABLET COLOR PER 2 PER SIZE COLOR MONTH WEEKS WEEK AB207 102000 N/A 500CC SHORT-PET D546 CLEAR 73.6 36.8 18.4 AB302 49303 N/A 500CC SHORT-PET D546 CLEAR 35.6 17.8 8.9 AB206 52234 N/A 500CC SHORT-PET NONE CLEAR 33.0 16.5 8.2 6.8 3.4 1.7 AB203 12447 N/A 400CC PET NONE LT BROWN 4.8 2.4 1.2 AA105 9500 N/A 400CC PET NONE LT BROWN Your product line-up as an 23.7 11.8 5.9 AC101 25796 N/A 400CC PET NONE GREEN interrelated group of things 22.7 11.4 5.7 AD401 32821 WHITE 400CC PET NONE GREEN AD221 41221 N/A 400CC PET NONE YELLOW 20.8 10.4 5.2 with varying degrees of AC301 29888 N/A 400CC PET NONE YELLOW 20.7 10.3 5.2 similarity AC201 27207 N/A 400CC PET NONE YELLOW 18.1 9.0 4.5 AB205 12792 N/A 400CC PET NONE YELLOW 7.0 3.5 1.8 AA101 3200 N/A 400CC HDPE NONE LIME 3.1 1.6 0.8 7.8 3.9 1.9 AA104 6462 N/A 400CC HDPE NONE LIME 5.1 2.5 1.3 AA103 5247 N/A 400CC HDPE NONE LIME 3.3 1.7 0.8 AA102 3407 N/A 400CC HDPE NONE LIME 16.8 8.4 4.2 AB207 25262 N/A 400CC HDPE NONE EGGSHELL AD201 33992 N/A 400CC HDPE NONE BLUE 40.9 20.4 10.2 AC441 44016 N/A 400CC HDPE NONE BLUE 30.5 15.2 7.6 15 #APICS2017

PRODUCT WHEEL DESIGN Step 1 - Decide which assets would benefit 16 #APICS2017

SHEET FORMING VIRTUAL CELL GROUPING Roll Forming Roll Forming Roll Forming Roll Forming Machine 1 Machine 2 Machine 3 Machine 4 Roll Bonder 1 Roll Bonder 2 Roll Bonder 3 Roll Bonder 4 CELL 3 Roll Slitting Roll Slitting Roll Slitting Machine 1 Machine 2 Machine 3 CELL 2 CELL 1 CELL 4 Chopper Chopper Chopper 1 2 3 Packaging Packaging 17 #APICS2017