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1、Warehouse Simulation GameWarehouse Simulation GameDuring the Warehouse Simulation Game the principles of Lean are shown and we ask you to apply them on the spotThe game makes you think about what is value add for the customer, what is the employees role and value add in the process, and to let go of
2、 traditional roles and seemingly independent tasksThe goal is to make Lean more concrete and easier to applyIt is an interactive way to get you acquainted with the Lean principles. 7/25/20222To understand the opportunity to improve quality, cost, and delivery performance in traditional warehousingTo
3、 gain an awareness of how JIT warehousing differs from traditional warehousingTo gain an appreciation of the following LEAN terms:Eight types of wasteContinuous flow processingTakt timeObjectives7/25/20223AgendaCase introductionPractice roundRound 1 “Waste”Round 2 “Flow”Round 3 “Takt”Summary 7/25/20
4、224Run(do)Redesign & Prepare(plan)Analyze(check)LEANtheory & examples(act)Structure of simulation rounds“Set up new round”“Design improved warehouse system”“Simulate operation”“Measure performance and identify issues”7/25/20225AgendaCase introductionPractice roundRound 1 “Waste”Round 2 “Flow”Round 3
5、 “Takt”Summary 7/25/20226ContextYou are 6, 12, 18, or 24 employees in a warehouse that produces kits for the consumer industryThe packing for these products requires special treatment, but has a similar setupThe company is currently unable to deliver the quality, cost, and delivery promises made to
6、its customers7/25/20227OperationEach order is made from sheet of A4, 1 photo film tube and 2 to 12 paperclipsEach operator has a workstation with 1 work instruction1Receive and check packing2Cut packing into quarter sheets3Prepare box, add pick list4Pick pack items required for orderQCShip&5Check qu
7、ality, seal order6Material handler7/25/20228UnitsGoalNumber of good orders deliveredPercent wrong picked/packed items from total number of itemsGood orders delivered/number of employeesNumber of 1/4 paper sheets in production areaAverage throughput time (minutes)Indexed against round 1 (=100%)Tracki
8、ng key performance indicatorsKPIDescriptionCost or RevenueComment1.Quantity # of correct orders delivered Revenue 100 2.Late penalty # of orders late Cost- 503.Quality penalty # of incorrect orders delivered Cost- 504.WIPNumber of 1/4 paper sheets in production area Cost - 105.Space# tables used Cos
9、t- 100 6.Personnel# employees Cost - 2007.Overhead Cost- 300 Fixed8.Productivity# orders delivered / # employees9.Lead TimeTime it takes to finish first order7/25/20229AgendaCase introductionPractice roundRound 1 “Waste”Round 2 “Flow”Round 3 “Takt”Summary 7/25/202210AgendaCase introductionPractice r
10、oundRound 1 “Waste”Round 2 “Flow”Round 3 “Takt”Summary 7/25/202211Round 1: Traditional manufacturingEvery process has a batch size of 4Every batch must be prepared together and the material handler must be requested to deliver the complete batch to the next process (material handler can only take on
11、e batch at a time)Every operator should work as fast as possible1. Receipt5. Inspect/ship4. Pick packing3. Preparation2. CuttingLayout is by process2m6. Material handler7/25/202212Simulation round 1 Customers demand:24 orders in 10 minutes7/25/202213Time7/25/202214UnitsGoalNumber of good orders deli
12、veredPercent wrong picked/packed items from total number of itemsGood orders delivered/number of employeesNumber of 1/4 paper sheets in production areaAverage throughput time (minutes)Indexed against round 1 (=100%)Round 1 analysis:Tracking key performance indicatorsKPIDescriptionCost or RevenueComm
13、ent1.Quantity # of correct orders delivered Revenue 100 2.Late penalty # of orders late Cost- 503.Quality penalty # of incorrect orders delivered Cost- 504.WIPNumber of 1/4 paper sheets in production area Cost - 105.Space# tables used Cost- 1006.Personnel# employees Cost - 2007.Overhead Cost- 300Fix
14、ed8.Productivity# orders delivered / # employees9.Lead TimeTime it takes to finish first order7/25/202215Round 1 analysis:Learning pointsWhat went well?What were the most significant problems?WIP levelsBottlenecksWaiting timeWorker stress/boredomTeam interactionDefect rateWhat were the root causes o
15、f these problems?How can these be resolved?QualityFirst pass yieldCostProductivityInventoryDelivery% on time to customerLead timePerformanceHow can performance be improved?7/25/202216InflexibilityWasteVariabilityReducing waste (“muda”) means lowering costs, improving quality and achieving consistent
16、 throughput (service level)Customer demandOutputCustomer demandOutputReducing inflexibility (“mura”) means becoming able to deliver to the client what he asks at the right time in the right amount (service level)Reducing variability (“muri”) means improving process reliability i.e. lowering cost and
17、 improving qualityThree lean enemies waste, inflexibility and variability address all operational targets7/25/202217Typical learning pointsThe layout is poor:Does not support this productPrevents people understanding the system Hinders communicationOperators often have nothing to do:Batch manufactur
18、eWaiting for material handlerSystem empty at start of shiftHigh levels of inventory tie up cash and create a quality riskDespite a lot of activity, the customer demand has not been metIt is a frustrating system to work in7/25/202218Module: WasteModule: One Piece FlowModule: Kanban8 types of wasteOve
19、rproductionProduce too much or too fastOver processingMore steps in the processes than requiredTalentNot fully utilizing the talent of all employeesMotionEvery motion that is not adding valueDefects / ReworkRepairing bad quality or mistakesTransportationMovements between processesInventoryEverything
20、 that is inexcess of the minimum required to perform the tasksWaitingWaiting for parts, until someone else has completes his cycle7/25/202220Lean Introduction TrainingContinuous Flow Processing is often the first step to removing wasteThe traditional layout and configuration of processes and departm
21、ents creates wasteContinuous flow processing7/25/202221Line design examplesAINVBCDINVINVINVEINVFBatch ProductionIsolatedABCDEFContinuous FlowLinear“U”-Shaped ParallelABCDEFCBADEFMaximized Flexibility & Motion EconomyFeedbackReduced InventoryReduced floor spaceClear production status (short/full)Redu
22、ced floor spaceIncreased operator flexibility across stepsReduced floor spaceGood for pair-product production7/25/2022221 piece flow and pull systemFinal customer dictates sequence and pace: pull systemCustomer-supplier relation at each process step (e.g. process 3 is customer of process 2 and proce
23、ss 3 is supplier of process 4)The system is using a 1 piece flow having standard 1 piece WIP Each process makes to replenish supermarket downstream (Kanban)Kanban Supermarket is identified as the place to put 1 single part between each process1.Receipt3.Set up2.Cut4.Pick pack5.QualityFinalcustomer 7
24、/25/202223AgendaCase introductionPractice roundRound 1 “Waste”Round 2 “Flow”Round 3 “Takt”Summary 7/25/202224Round 2: Summary of design changesImproved layout (to optimize material flow)Continuous flow processingBatch size of 1 (from operator 3 onwards)No need for internal packagingWork is passed di
25、rectly between operatorsMaterial handler freed up to study performancePull system implemented to control inventory and to allow customer to set paceEach station works only if demand exists at the next downstreamDemand is signaled by empty Kanban space (WIP storage)Customer pulls 1 order from last pr
26、ocess every 25 seconds7/25/202225Simulation round 2 Customers demand:24 orders in 10 minutes7/25/202226Time7/25/202227UnitsGoalNumber of good orders deliveredPercent wrong picked/packed items from total number of itemsGood orders delivered/number of employeesNumber of 1/4 paper sheets in production
27、areaAverage throughput time (minutes)Indexed against round 1 (=100%)Round 2 analysis:Tracking key performance indicatorsKPIDescriptionCost or RevenueComment1.Quantity # of correct orders delivered Revenue 100 2.Late penalty # of orders late Cost- 503.Quality penalty # of incorrect orders delivered C
28、ost- 504.WIPNumber of 1/4 paper sheets in production area Cost - 105.Space# tables used Cost- 1006.Personnel# employees Cost - 2007.Overhead Cost- 300Fixed8.Productivity# orders delivered / # employees9.Lead TimeTime it takes to finish first order7/25/202228Round 2 analysis:Learning pointsWhat went
29、well?What were the most significant problems?WIP levelsBottlenecksWaiting timeWorker stress/boredomTeam interactionDefect rateWhat were the root causes of these problems?How can these be resolved?QualityFirst pass yieldCostProductivityInventoryDelivery% on time to customerLead timePerformanceHow can
30、 performance be improved?7/25/202229Module: Takt TimeModule: Workforce FlexibilityModule: Poka Yoke11)21)3456OperatorLine is clearly imbalancedWhat should be done?How much work should each person have?Assume these processes must remain batch operation1312331030Analyzing the problem of waitingTime pe
31、r order, Seconds7/25/202231Solving the problem of waitingTime per order, SecondsThe correct pace of productionexactly achieves customer demand in the production time availableFor a balanced line with minimal waste, each process must complete one operation at this pace: the takt timeTakt time = Avail
32、able time Customer demand= 10 minutes * 60 seconds 24 orders= 25 seconds per orderTakt time = 25sAssume these processes must remain batch operation11)21)3456Operato25/202232Solving the problem of waitingTime per order, Seconds - Line BalancingTakt time = 25sAssume these processes must r
33、emain batch operation11)21)3456Operator1312252325Auxiliary waste due to isolated batch processes1)Work elements have to be redistributed to ensure every process will produce at customer driven paceCross training will be necessaryProductivity will be improvedNon value added time focused at one operat
34、ion: time may be usefully filled until further productivity improvements are possible7/25/202233AgendaCase introductionPractice roundRound 1 “Waste”Round 2 “Flow”Round 3 “Takt”Summary 7/25/202234Round 3: Summary of design changesLine balanced to takt time Flexible workforceIn-station quality checks
35、(Poka Yoka)7/25/202235Simulation Round 3 Customers demand:24 orders in 10 minutes7/25/202236Time7/25/202237UnitsGoalNumber of good orders deliveredPercent wrong picked/packed items from total number of itemsGood orders delivered/number of employeesNumber of 1/4 paper sheets in production areaAverage
36、 throughput time (minutes)Indexed against round 1 (=100%)Round 3 analysis:Tracking key performance indicatorsKPIDescriptionCost or RevenueComment1.Quantity # of correct orders delivered Revenue 100 2.Late penalty # of orders late Cost- 503.Quality penalty # of incorrect orders delivered Cost- 504.WI
37、PNumber of 1/4 paper sheets in production area Cost - 105.Space# tables used Cost- 1006.Personnel# employees Cost - 2007.Overhead Cost- 300Fixed8.Productivity# orders delivered / # employees9.Lead TimeTime it takes to finish first order7/25/202238Round 3 analysis:Learning pointsWhat went well?What w
38、ere the most significant problems?WIP levelsBottlenecksWaiting timeWorker stress/boredomTeam interactionDefect rateWhat were the root causes of these problems?How can these be resolved?QualityFirst pass yieldCostProductivityInventoryDelivery% on time to customerLead timePerformanceHow can performanc
39、e be improved?7/25/202239Analyzing opportunity for growth Time per order, SecondsCurrent takt time of 25 seconds Assume these processes must remain batch operation11)21)3456Operator1312252325Company now has immediate opportunity to meet higher demand with existing trained workforceBenefits of flexible line can be captured
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