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C

capacity.ppt-1APACIT

©1994GeneralMotorsCorporation.Allrightsreserved.YCAPACITY1©1994GeneralMotorsCorporation.Allrightsreserved.

SUPPLIERDEVELOPMENTTOOLSCAPACITYWORKSHOPEXECUTIVESUMMARYPURPOSE:SCOPE:METHOD:AssistSupplierintheIdentificationAndTheEliminationofPotentialProductionShortfallsBetweenCapacityandRequirements.MayIncludeAllFunctionalAreasAndProductionOperations.Datacollection,workshop,targettedactionsLOGISTICS:ConductedUtilizingJointGM/SupplierTeam.©1994GeneralMotorsCorporat2QCHECKCOPERATIONIdentifypilotarea

Makeallpeople affectedaware ofwhatisgoingtohappen

Select teammembersIdentifyopportunities toimprove Analyze &select

Developactionplan(applyzero/lowcostideasfirst)

ImplementnewmethodA.S.A.P.

Verify&adjust

Lookfornew opportunitiesRecognize effortsof people

Define currentsituationOPERATION:NO.DESCRIPTIONOFOPERATIONWFROM:___________________________TO:_____________________________ELEMENTTIMEHANDWORKMACHINEALK

QUANTITYPERSHIFT:______________ SHIFT:________STANDARDIN-QUALITYPROCESSSTOCKCUSTOMERCYCLETIME:__________________OPERATORCYCLETIME:__________________ CRITICAL SAFETYSupplierDevelopment WorkshopProcessDiscussplanQCHECKCOPERATIONIdentify Make3capacity.ppt-4CAPACITYWORKSHOPAGENDA••••••••IntroductionTheoryofConstraintOverview5StepImprovementProcessDataCollection/DataAnalysisConstraintIdentificationStrategyImplementationMeasureImprovementWrap-Up

©1994GeneralMotorsCorporation.Allrightsreserved.capacity.ppt-4CAPACITYWORK4©1994GeneralMotorsCorporation.Allrightsreserved.TheoryofConstraint Overview

FLOW©1994GeneralMotorsCorporat5©1994GeneralMotorsCorporation.Allrightsreserved.

BOTTLENECK

AnOperationWhichLimitstheOverallOutputofa SeriesofOperations1,000 900800700600500400300200100 012345678BottleneckDemandCAPAC ITY

OPERATIONCAPACITY>DEMAND©1994GeneralMotorsCorporat6©1994GeneralMotorsCorporation.Allrightsreserved.

CONSTRAINTABottleneckbecomesaConstraintwhenitcannolongersatisfythedemandplaceduponitThus,anyresourcewhosecapacityislessthanthedemandplaceduponitisaConstraint

1,000 900800700600500400300200100 012345678ConstraintDemandCAPAC ITY

OPERATIONCAPACITY<DEMAND©1994GeneralMotorsCorporat7©1994GeneralMotorsCorporation.Allrightsreserved.

DEFINITION

Aconstraintisthatactivitywhichmostlimitstheorganization’sabilitytoachievehigherperformancerelativetoitspurposeorgoal.

TypesofConstraints

Capacity:

•Capacity<Demand Market:

•Capacity>Demand Policy:

•ManagementDecision©1994GeneralMotorsCorporat8©1994GeneralMotorsCorporation.Allrightsreserved.

ConstraintTypesCapacity

•Customerswantmoreproductthancanbesupplied

•Symptoms:equipmentoverworked,noPreventativeMaintenance,high premiumcosts,overtime

•Example:StampingPresscanonlymake5,000partsperday,butthe customerrequires6,100.Market

•Customersdonotwantasmuchproductascanbeproduced

•Symptoms:wastedequipment,highercostsincurred,lowefficiency

•Example:Castingforsixhourswiththemachineidlefortheremainderof thedayPolicy

•Managementdecisionsdictatehowthebusinessshalloperate

•Symptoms:unabletochange,highcostsolutionsinsteadoflowcost

•Example:tagreliefnotusedduringaconstraint,maximumovertimeallowed perweek,resultsinmoremachinerybeingused©1994GeneralMotorsCorporat9capacity.ppt-10CONSTRAINTSYMPTOMS••••••••BuildupofInventoryPriortoanOperationDownStreamOperationsStarvedforPartsExpeditingExcessiveMaterialHandlingatanOperationPremiumFreightOvertimeNoTimeforPreventativeMaintenanceConstantScheduleChanges

©1994GeneralMotorsCorporation.Allrightsreserved.capacity.ppt-10CONSTRAINTS10©1994GeneralMotorsCorporation.Allrightsreserved.

5StepImprovementProcessStep0:EstablishBaselineStep1:IdentifyConstraint/BottleneckStep2:ExploitConstraintStep3:Subordinatenon-constraintsStep4:Elevate a:RunAlloftheTime b:AddCapacityStep5:Restudy©1994GeneralMotorsCorporat11

RepairLoop(s)StationBuffers ParallelPower&Free ConveyorISTHEREACONSTRAINT?

Back-Up StationBuffersFinishedProduct ExitPointRawMaterial EntryPoint

capacity.ppt-12ParallelStations

HERE?HERE?

Stations

HERE?

Accumulating ConveyorBack-UpHERE?

©1994GeneralMotorsCorporation.Allrightsreserved.HERE? RepairStationBuffersPower&F12©1994GeneralMotorsCorporation.Allrightsreserved.ISONEPARAMETERSUFFICIENT?102030405010008919028030010203040506510203040504.7102030405010203040501.0102030405065.2MeanTimeBetweenFailuresJobsPerHourOccurrencesofFailure

MeanTimeToRepair6.5ScrapLookingattheseindividualreports,whatwouldyousayisthemainbottleneck?678075714.55.312.80.444.42.01.00.10.437.64.6TotalDowntime

87.50.3©1994GeneralMotorsCorporat13©1994GeneralMotorsCorporation.Allrightsreserved.THETYPICALPLANTENVIRONMENT••••••PlantOperatesataProductivityPlateau,WithHighThroughputVariability.PlantThroughputIsOften10%to50%BelowDesignedRate.LostProductionIsMadeupWithOvertime.ProductionBlamesMaintenance,MaintenanceBlamesProduction,GeneralAssemblyBlamesPaint,PaintBlamesBody,Etc.InManyofOurPlants,We'reCollectingVastQuantitiesofDataandWe'reNotUsingIt!InSomeofOurPlants,NOProductionMonitoringIsPerformed.“High-Tech”andLow-TechSystemsComplicateAnalysisoftheProductionProcess.©1994GeneralMotorsCorporat14©1994GeneralMotorsCorporation.Allrightsreserved.

5StepImprovementProcessStep0:EstablishBaselineStep1:IdentifyConstraint/BottleneckStep2:ExploitConstraintStep3:Subordinatenon-constraintsStep4:Elevate a:RunAlloftheTime b:AddCapacityStep5:Restudy©1994GeneralMotorsCorporat15Step0:EstablishBaseline

• • • •capacity.ppt-16Goalofthisstepistodetermine: “Wherearewetoday?”DefinethescopeofthesystemDeterminethemeasurementsystemtouse-*ifyouknowitatthispointCompletetheCapacityAnalysisWorksheet

–LogicalProcesstoIdentifyanyConstraint

–EstimatestheCapacityatEachOperation

–NoteAdditionalConstraints

•Market

•Policy

©1994GeneralMotorsCorporation.Allrightsreserved.Step0:EstablishBaseline •Go16©1994GeneralMotorsCorporation.Allrightsreserved.CapacityAnalysisTool••Requiresafewsimpleinputs

–CapacityRequirements

–ScrapandRework

–Downtime-ScheduledandUnscheduled

–OperationCycleTimesOutputincludes:

–EstimationofTotalCapacityofOperation

–TotalNumberofShiftsRequiredperWeektoProduce Requirements

–OverallEquipmentEffectivenessMeasurement

–FlagforConstraintOperations©1994GeneralMotorsCorporat17©1994GeneralMotorsCorporation.Allrightsreserved.Step0:Re:CompletionoftheCapacity AnalysisWorksheet•NotetoSDEs:

–ShowanexampleoftheCapacityAnalysisWorksheet

–Workthroughthesheetwiththesupplierwithasmuch actualdataaspossible

–Accuracyofinformationisimportant,asthiswillform thebasisfortheremainderofthediscussion

–Brainstormingforimprovementscanbestructuredto followeachoneoftheinputstothecapacityanalysis©1994GeneralMotorsCorporat18©1994GeneralMotorsCorporation.Allrightsreserved.

5StepImprovementProcessStep0:EstablishBaselineStep1:IdentifyConstraint/BottleneckStep2:ExploitConstraintStep3:Subordinatenon-constraintsStep4:Elevate a:RunAlloftheTime b:AddCapacityStep5:Restudy©1994GeneralMotorsCorporat19NetCapability perdayShiftsReq’d perweek#41417.27#46714.76©1994GeneralMotorsCorporation.Allrightsreserved.Step1:IdentifytheConstraint/Bottleneck••If#shifts/weekrequired>#shiftsavailable,thenaconstraintexists

•Note:Thiswillbeshownbya“#”ontheCapacitySpreadsheetIfnoconstraintexists:

–examinetheoperationsforthegreatestnumberofshifts required,andthelowestnetcapabilityperday.

–Theoperationwiththegreatestnumberofshiftsclosesttothe requirementisthebottleneck.

–Notethatconstraintsmaynotbeimmediatelyvisibleonthe capacityspreadsheetduetointeractionsbetweenoperations (buffers)Shiftsavailable=15Requirement/day=450NetCapabilityShiftsReq’d#41420©1994GeneralMotorsCorporation.Allrightsreserved.

5StepImprovementProcessStep0:EstablishBaselineStep1:IdentifyConstraint/BottleneckStep2:ExploitConstraintStep3:Subordinatenon-constraintsStep4:Elevate a:RunAlloftheTime b:AddCapacityStep5:Restudy©1994GeneralMotorsCorporat21©1994GeneralMotorsCorporation.Allrightsreserved.Step2:ExploitConstraint•••RunconstraintatitsbasiccapacityinisolationScheduleOperationEffectivelyDon’tWasteOutput

–Eliminatedefectivepartsbeforetheyarrive

–Makesurepartsarenotscrappedlaterintheprocess

–Eliminatereworkthatmustgobackthroughconstraint

–Improvethetoolsorgaugesused

–Improveyieldbyassuringthequalityoftheprocess

–“Rushto”before...”Handlewithcare”after©1994GeneralMotorsCorporat22©1994GeneralMotorsCorporation.Allrightsreserved.Step2:ExploitConstraint-continued••OperatorRulesofEngagement

–Runmachineswhenyouhavematerial

–Dosomethingproductivewhenyoudon’thavematerial (setup,PM)

–Cross-trainworkerstopreventidletimedueto absenteeismEliminateBlockandStarvethrougheffectivebuffering

–i.e.partsbeforeandspaceafterwards©1994GeneralMotorsCorporat23©1994GeneralMotorsCorporation.Allrightsreserved.Starving/Blocking••NeverStarveaConstraint

–UtilizeBufferManagement

–Placebufferinventoryaheadtoassureitalwayshas partstorun

–LoadpartsaheadtoensureconstraintrunsNeverBlocktheConstraint

–De-coupletheOperations

–Assurepartsarepulledawaysooperationdoesn’tstop (enoughracks,containers,space)

–Unloadaftertheconstraintifthesystemdownstreamis down©1994GeneralMotorsCorporat24STARVEDSystem(NoJobstoWorkOn)BLOCKEDSystem(Choked)(NoPlacetoputJob)DESIREDSystemL

uuZZZZZZ

LBlocked Station

FullBuffer

uuZZZZZZ

Failed Station

FailedStation

Empt yBufferStarved StationJ

Workin gStation

JConstraint Working

Station©1994GeneralMotorsCorporation.Allrightsreserved.

STARVE/BLOCKNote:Thisisapplicablefortheconstraintoperationonly,andnotalloperations

Max MinBufferMax MinEmptyBufferSTARVEDSystemBLOCKEDSystemDE25©1994GeneralMotorsCorporation.Allrightsreserved.

DE-COUPLINGTakingonecontinuousprocessandbreakingitinto2ormoresmallerprocesseswithasmallinventorybetweeneachprocessinordertoreducethelevelofdependency.

CoupledDe-coupledBuffer

AutoTransferMachineMachineMachineConstraintMachineMachineMachine

AutoTransfer Auto Transfer©1994GeneralMotorsCorporat26BLOCK

©1994GeneralMotorsCorporation.Allrightsreserved.CONSTRAINTS/BOTTLENECKS FLOWBLOCKCONSTRAINTS/BOTTLENECKS27©1994GeneralMotorsCorporation.Allrightsreserved.

5StepImprovementProcessStep0:EstablishBaselineStep1:IdentifyConstraint/BottleneckStep2:ExploitConstraintStep3:Subordinatenon-constraintsStep4:Elevate a:RunAlloftheTime b:AddCapacityStep5:Restudy©1994GeneralMotorsCorporat28©1994GeneralMotorsCorporation.Allrightsreserved.Step3:SubordinateOtherOperationtoRun theConstraint••••Subordinate(Optimize)Resourcesinfavorofrunningtheconstrainingoperation

–Movepeoplefromnon-constraintstoconstraining operationeveniftheyaren’tfinishedatthenon- constraintPerformmaintenanceontheconstraintoperationbeforeothersRunallothermachinestoeliminatestarve/block“Improvingthroughputonanyoperationotherthantheconstraintdoesnotimprovethesystem’soverallthroughput”©1994GeneralMotorsCorporat29©1994GeneralMotorsCorporation.Allrightsreserved.

5StepImprovementProcessStep0:EstablishBaselineStep1:IdentifyConstraint/BottleneckStep2:ExploitConstraintStep3:Subordinatenon-constraintsStep4:Elevate a:RunAlloftheTime

b:AddCapacityStep5:Restudy©1994GeneralMotorsCorporat30©1994GeneralMotorsCorporation.Allrightsreserved.Step4a:Elevate-RunAlloftheTime•KeepItRunning

–Runthroughlunch,breaks(tagrelief),etc.

–Afterchangeover,runproductionsimultaneouslywith firstpieceapproval

–Reducenumberofsetupsbyprocessingfamiliesofjobs thatrequiresimilarsetups

–Reducesetuptime

–Improvepreventativemaintenancetoreducebottleneck downtime©1994GeneralMotorsCorporat31©1994GeneralMotorsCorporation.Allrightsreserved.

5StepImprovementProcessStep0:EstablishBaselineStep1:IdentifyConstraint/BottleneckStep2:ExploitConstraintStep3:Subordinatenon-constraintsStep4:Elevate a:RunAlloftheTime

b:AddCapacityStep5:Restudy©1994GeneralMotorsCorporat32©1994GeneralMotorsCorporation.Allrightsreserved.Step4b:Elevate-AddCapacity••Addcapacitytotheconstraintoperation

–ImproveCycleTime(canitgofaster?)

–AddaMachine/Person

–ProduceMorePartsperCycleReduceWorkloadatBottleneck

–Moveworktoalternateworkcentersormanufacturing methods

–Redesignsomeproductstoreduceworkloadofthe bottleneck

–Subcontractbottleneckwork©1994GeneralMotorsCorporat33©1994GeneralMotorsCorporation.Allrightsreserved.

5StepImprovementProcessStep0:EstablishBaselineStep1:IdentifyConstraint/BottleneckStep2:ExploitConstraintStep3:Subordinatenon-constraintsStep4:Elevate a:RunAlloftheTime b:AddCapacityStep5:Restudy

⇒Thesystemhaschanged,andtheprocess startsoveragainatStep1©1994GeneralMotorsCorporat34No.ActionItemResponsibilityTarget Date

ProgressCommentsWORKSHOPACTIONITEMS

Supplier: GMBuyer:ActivityType:

Location:CreativityTeam: SDE:ActivityDate:FollowupDates:-No.ActionItemResponsibilityTa35PARAMETERS

BEFOREWORKSHOPIMPROVEDSTATE(CURRENTWEEK)SHORTTERMLONGTERMMEASURE%IMPROVEMENTMEASURE%IMPROVEMENTMEASURE%IMPROVEMENTCustomerReq't

(LCR)

Capacityper________

(Enterunittime)FORECASTACTUALGMRequirements Achieved (Yes/No)

Savings(Tooling,etc.)GMSPONSORINGDIVISION

CAPACITYWORKSHOP

SUMMARYOFRESULTSSUPPLIER:__________________________________________________________________________________:___________________________________________________________________PROCESS:_______________________________________________________________________________________________________________________________________________________CREATIVITPARAMETERS BEFOREIMPROVED36C

capacity.ppt-1APACIT

©1994GeneralMotorsCorporation.Allrightsreserved.YCAPACITY37©1994GeneralMotorsCorporation.Allrightsreserved.

SUPPLIERDEVELOPMENTTOOLSCAPACITYWORKSHOPEXECUTIVESUMMARYPURPOSE:SCOPE:METHOD:AssistSupplierintheIdentificationAndTheEliminationofPotentialProductionShortfallsBetweenCapacityandRequirements.MayIncludeAllFunctionalAreasAndProductionOperations.Datacollection,workshop,targettedactionsLOGISTICS:ConductedUtilizingJointGM/SupplierTeam.©1994GeneralMotorsCorporat38QCHECKCOPERATIONIdentifypilotarea

Makeallpeople affectedaware ofwhatisgoingtohappen

Select teammembersIdentifyopportunities toimprove Analyze &select

Developactionplan(applyzero/lowcostideasfirst)

ImplementnewmethodA.S.A.P.

Verify&adjust

Lookfornew opportunitiesRecognize effortsof people

Define currentsituationOPERATION:NO.DESCRIPTIONOFOPERATIONWFROM:___________________________TO:_____________________________ELEMENTTIMEHANDWORKMACHINEALK

QUANTITYPERSHIFT:______________ SHIFT:________STANDARDIN-QUALITYPROCESSSTOCKCUSTOMERCYCLETIME:__________________OPERATORCYCLETIME:__________________ CRITICAL SAFETYSupplierDevelopment WorkshopProcessDiscussplanQCHECKCOPERATIONIdentify Make39capacity.ppt-4CAPACITYWORKSHOPAGENDA••••••••IntroductionTheoryofConstraintOverview5StepImprovementProcessDataCollection/DataAnalysisConstraintIdentificationStrategyImplementationMeasureImprovementWrap-Up

©1994GeneralMotorsCorporation.Allrightsreserved.capacity.ppt-4CAPACITYWORK40©1994GeneralMotorsCorporation.Allrightsreserved.TheoryofConstraint Overview

FLOW©1994GeneralMotorsCorporat41©1994GeneralMotorsCorporation.Allrightsreserved.

BOTTLENECK

AnOperationWhichLimitstheOverallOutputofa SeriesofOperations1,000 900800700600500400300200100 012345678BottleneckDemandCAPAC ITY

OPERATIONCAPACITY>DEMAND©1994GeneralMotorsCorporat42©1994GeneralMotorsCorporation.Allrightsreserved.

CONSTRAINTABottleneckbecomesaConstraintwhenitcannolongersatisfythedemandplaceduponitThus,anyresourcewhosecapacityislessthanthedemandplaceduponitisaConstraint

1,000 900800700600500400300200100 012345678ConstraintDemandCAPAC ITY

OPERATIONCAPACITY<DEMAND©1994GeneralMotorsCorporat43©1994GeneralMotorsCorporation.Allrightsreserved.

DEFINITION

Aconstraintisthatactivitywhichmostlimitstheorganization’sabilitytoachievehigherperformancerelativetoitspurposeorgoal.

TypesofConstraints

Capacity:

•Capacity<Demand Market:

•Capacity>Demand Policy:

•ManagementDecision©1994GeneralMotorsCorporat44©1994GeneralMotorsCorporation.Allrightsreserved.

ConstraintTypesCapacity

•Customerswantmoreproductthancanbesupplied

•Symptoms:equipmentoverworked,noPreventativeMaintenance,high premiumcosts,overtime

•Example:StampingPresscanonlymake5,000partsperday,butthe customerrequires6,100.Market

•Customersdonotwantasmuchproductascanbeproduced

•Symptoms:wastedequipment,highercostsincurred,lowefficiency

•Example:Castingforsixhourswiththemachineidlefortheremainderof thedayPolicy

•Managementdecisionsdictatehowthebusinessshalloperate

•Symptoms:unabletochange,highcostsolutionsinsteadoflowcost

•Example:tagreliefnotusedduringaconstraint,maximumovertimeallowed perweek,resultsinmoremachinerybeingused©1994GeneralMotorsCorporat45capacity.ppt-10CONSTRAINTSYMPTOMS••••••••BuildupofInventoryPriortoanOperationDownStreamOperationsStarvedforPartsExpeditingExcessiveMaterialHandlingatanOperationPremiumFreightOvertimeNoTimeforPreventativeMaintenanceConstantScheduleChanges

©1994GeneralMotorsCorporation.Allrightsreserved.capacity.ppt-10CONSTRAINTS46©1994GeneralMotorsCorporation.Allrightsreserved.

5StepImprovementProcessStep0:EstablishBaselineStep1:IdentifyConstraint/BottleneckStep2:ExploitConstraintStep3:Subordinatenon-constraintsStep4:Elevate a:RunAlloftheTime b:AddCapacityStep5:Restudy©1994GeneralMotorsCorporat47

RepairLoop(s)StationBuffers ParallelPower&Free ConveyorISTHEREACONSTRAINT?

Back-Up StationBuffersFinishedProduct ExitPointRawMaterial EntryPoint

capacity.ppt-12ParallelStations

HERE?HERE?

Stations

HERE?

Accumulating ConveyorBack-UpHERE?

©1994GeneralMotorsCorporation.Allrightsreserved.HERE? RepairStationBuffersPower&F48©1994GeneralMotorsCorporation.Allrightsreserved.ISONEPARAMETERSUFFICIENT?102030405010008919028030010203040506510203040504.7102030405010203040501.0102030405065.2MeanTimeBetweenFailuresJobsPerHourOccurrencesofFailure

MeanTimeToRepair6.5ScrapLookingattheseindividualreports,whatwouldyousayisthemainbottleneck?678075714.55.312.80.444.42.01.00.10.437.64.6TotalDowntime

87.50.3©1994GeneralMotorsCorporat49©1994GeneralMotorsCorporation.Allrightsreserved.THETYPICALPLANTENVIRONMENT••••••PlantOperatesataProductivityPlateau,WithHighThroughputVariability.PlantThroughputIsOften10%to50%BelowDesignedRate.LostProductionIsMadeupWithOvertime.ProductionBlamesMaintenance,MaintenanceBlamesProduction,GeneralAssemblyBlamesPaint,PaintBlamesBody,Etc.InManyofOurPlants,We'reCollectingVastQuantitiesofDataandWe'reNotUsingIt!InSomeofOurPlants,NOProductionMonitoringIsPerformed.“High-Tech”andLow-TechSystemsComplicateAnalysisoftheProductionProcess.©1994GeneralMotorsCorporat50©1994GeneralMotorsCorporation.Allrightsreserved.

5StepImprovementProcessStep0:EstablishBaselineStep1:IdentifyConstraint/BottleneckStep2:ExploitConstraintStep3:Subordinatenon-constraintsStep4:Elevate a:RunAlloftheTime b:AddCapacityStep5:Restudy©1994GeneralMotorsCorporat51Step0:EstablishBaseline

• • • •capacity.ppt-16Goalofthisstepistodetermine: “Wherearewetoday?”DefinethescopeofthesystemDeterminethemeasurementsystemtouse-*ifyouknowitatthispointCompletetheCapacityAnalysisWorksheet

–LogicalProcesstoIdentifyanyConstraint

–EstimatestheCapacityatEachOperation

–NoteAdditionalConstraints

•Market

•Policy

©1994GeneralMotorsCorporation.Allrightsreserved.Step0:EstablishBaseline •Go52©1994GeneralMotorsCorporation.Allrightsreserved.CapacityAnalysisTool••Requiresafewsimpleinputs

–CapacityRequirements

–ScrapandRework

–Downtime-ScheduledandUnscheduled

–OperationCycleTimesOutputincludes:

–EstimationofTotalCapacityofOperation

–TotalNumberofShiftsRequiredperWeektoProduce Requirements

–OverallEquipmentEffectivenessMeasurement

–FlagforConstraintOperations©1994GeneralMotorsCorporat53©1994GeneralMotorsCorporation.Allrightsreserved.Step0:Re:CompletionoftheCapacity AnalysisWorksheet•NotetoSDEs:

–ShowanexampleoftheCapacityAnalysisWorksheet

–Workthroughthesheetwiththesupplierwithasmuch actualdataaspossible

–Accuracyofinformationisimportant,asthiswillform thebasisfortheremainderofthediscussion

–Brainstormingforimprovementscanbestructuredto followeachoneoftheinputstothecapacityanalysis©1994GeneralMotorsCorporat54©1994GeneralMotorsCorporation.Allrightsreserved.

5StepImprovementProcessStep0:EstablishBaselineStep1:IdentifyConstraint/BottleneckStep2:ExploitConstraintStep3:Subordinatenon-constraintsStep4:Elevate a:RunAlloftheTime b:AddCapacityStep5:Restudy©1994GeneralMotorsCorporat55NetCapability perdayShiftsReq’d perweek#41417.27#46714.76©1994GeneralMotorsCorporation.Allrightsreserved.Step1:IdentifytheConstraint/Bottleneck••If#shifts/weekrequired>#shiftsavailable,thenaconstraintexists

•Note:Thiswillbeshownbya“#”ontheCapacitySpreadsheetIfnoconstraintexists:

–examinetheoperationsforthegreatestnumberofshifts required,andthelowestnetcapabilityperday.

–Theoperationwiththegreatestnumberofshiftsclosesttothe requirementisthebottleneck.

–Notethatconstraintsmaynotbeimmediatelyvisibleonthe capacityspreadsheetduetointeractionsbetweenoperations (buffers)Shiftsavailable=15Requirement/day=450NetCapabilityShiftsReq’d#41456©1994GeneralMotorsCorporation.Allrightsreserved.

5StepImprovementProcessStep0:EstablishBaselineStep1:IdentifyConstraint/BottleneckStep2:ExploitConstraintStep3:Subordinatenon-constraintsStep4:Elevate a:RunAlloftheTime b:AddCapacityStep5:Restudy©1994GeneralMotorsCorporat57©1994GeneralMotorsCorporation.Allrightsreserved.Step2:ExploitConstraint•••RunconstraintatitsbasiccapacityinisolationScheduleOperationEffectivelyDon’tWasteOutput

–Eliminatedefectivepartsbeforetheyarrive

–Makesurepartsarenotscrappedlaterintheprocess

–Eliminatereworkthatmustgobackthroughconstraint

–Improvethetoolsorgaugesused

–Improveyieldbyassuringthequalityoftheprocess

–“Rushto”before...”Handlewithcare”after©1994GeneralMotorsCorporat58©1994GeneralMotorsCorporation.Allrightsreserved.Step2:ExploitConstraint-continued••OperatorRulesofEngagement

–Runmachineswhenyouhavematerial

–Dosomethingproductivewhenyoudon’thavematerial (setup,PM)

–Cross-trainworkerstopreventidletimedueto absenteeismEliminateBlockandStarvethrougheffectivebuffering

–i.e.partsbeforeandspaceafterwards©1994GeneralMotorsCorporat59©1994GeneralMotorsCorporation.Allrightsreserved.Starving/Blocking••NeverStarveaConstraint

–UtilizeBufferManagement

–Placebufferinventoryaheadtoassureitalwayshas partstorun

–LoadpartsaheadtoensureconstraintrunsNeverBlocktheConstraint

–De-coupletheOperations

–Assurepartsarepulledawaysooperationdoesn’tstop (enoughracks,containers,space)

–Unloadaftertheconstraintifthesystemdownstreamis down©1994GeneralMotorsCorporat60STARVEDSystem(NoJobstoWorkOn)BLOCKEDSystem(Choked)(NoPlacetoputJob)DESIREDSystemL

uuZZZZZZ

LBlocked Station

FullBuffer

uuZZZZZZ

Failed Station

Faile

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