© Fraunhofer IPA

Factory Planning with Value Stream Design

April 13th 2016

Fraunhofer IPA, Stuttgart Germany

Erin Sheehan

Fraunhofer Institut für Produktionstechnik und Automatisierung IPA

© Fraunhofer IPA

Slide 2

Future Challenges3

Factory Planning Methodology2

Factory Planning at Fraunhofer IPA1

Agenda Kick-Off Meeting

© Fraunhofer IPA

Slide 3

Factory Planning und Production Optimization

Integrated Planning of Factories and Material Handling Systems Factory design and redesign, layout-planning Factory evaluation und site comparison Plant structure development Floor-space optimization and design validation

Production Optimization und Value Stream Design Value stream design: increasing efficiency and sinking costs Process optimization with lean production systems Increasing energy efficiency with the Energy-Value-Stream Value-Stream-Management for lean order-processing Creation of performance indicator systems

Manufacturing and Assembly Planning Assembly planning and optimization Design of manufacturing systems and technology selection Simulation of manufacturing systems

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Slide 4

Future Challenges3

Factory Planning Methodology2

Factory Planning at Fraunhofer IPA1

Agenda Kick-Off Meeting

© Fraunhofer IPA

Slide 5

A well-designed factory layout should allow for optimal operation as well as expansion

Principles for layout design:

1. Material-flow oriented arrangement of processes, material handling (valuestream)

2. Closeness: Assembly Areas/Inbound Goods (midstream supply vendor parts)

3. Clustering of areas with similar requirements (e.g. Clean Room)

4. Permanent placement of fixed points without without obstructing material flow or prohibiting growth

5. Include Indirect Areas without obstructing material flow or prohibiting growth

6. Plan for expansion: More product lines, Insourcing/Outsourcing

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Slide 6

The Factory Planning Method of Fraunhofer in Accordance with the VDI Guideline 5200*

Phase 1-3Pre-planning

Phase 4 Ideal planning

Project-initialisation

Kick-Off

Weak point-Workshop Real-Layout

variants

Greenfield

Brownfield

Value stream design

Dimensioning

Ideal-Layout

Expansion Planning

Phase 5Real planning

Development of transformation scenarios and construction steps

Value-Benefit Analysis

Setting Objectives

Defining Strategy

Establishing Restrictions, Constraints and Assumptions

Establishing a Basis

Product family definition

Value stream analysis

Capacity assessment

Space analysis

Storage analysis

Material flow analysis

l

II

III V.2IV.1 V.1

IV.2

VDI: Association of German Engineers

© Fraunhofer IPA

Slide 7

The Effect of Uncoordinated Activities On Factory Operations

Each department has a different goal, although all efforts are well meant, and each acts "correctly" in terms of its own goals The factory targets

cannot be achieved

Make transparent targets Set priorities Clear focus in the project Common understanding among

all stakeholders Measurement of project success

What can be done about it?Goal Setting-Workshop

Short Lead Time

High Efficiency

On-time Delivieres

Low Inventory

CostEffectiveness

Short Lead

Time

High

Efficiency

On-time

Deliveries

Low

inventory

Cost

Effective

ness

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Slide 8

Market

• Positioning relative to the competition

• Focus on Core Sectors, Customer Groups, and Business Units

• Logistical Requirements: SalesChannels, Shipping Conditions

Products

• Volume forecasts

• New products

• Product revisions

Technologies

• New equipment

• Productivity improvements

• New technologies

• Resulting new requirements on thebuilding: foundation, cleanliness, coloumn grid, cranes, …

Site:

• Cost structure trends (manpower, machinery, material)

• Core Competencies and Make-or-Buy

• Expansion possibilities at this site

• Relocation and division of work in a production network

To set facility and project goals, all assumptions, demandecenarios, and concrete evaluation criteria are defined in a strategy workshop

Deriv ing Factory and Project Objectives fromthe Company Strategy

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Slide 9

Assessment of Boundary Conditions

Baujahr des Gebäudes

Gebäude: A 601

B e s c h r e i b u n g

B e w e r t u n g I S T

1966

Dach:mittel schlechtgut

Dach:mittel schlechtgut

Fassade: mittel schlechtgut

Fassade: mittel schlechtgut mittel schlechtgut

Verglasung: mittel schlechtgut

Verglasung: mittel schlechtgut

Iso

lieru

ng

:

Zustand Boden:mittel schlechtgut

Geschätze Restlebensd. 40

B e w e r t u n g E i g n u n g

Lager:mittel schlechtgut

Lager:mittel schlechtgut

Produktion: mittel schlechtgut

Produktion: mittel schlechtgut mittel schlechtgut

Verfügbare Nutzfläche: 456 (Prod. und Logistik)

Ausl. Stromversorg.:0%100% 50%

Ausl. Stromversorg.:0%100% 50%

Ausl. Heizung :0%100% 50%

Ausl. Heizung :0%100% 50%

Ausl. Kühlanlagen.:0%100% 50%

Ausl. Kühlanlagen.:0%100% 50%

100%

An

zah

l:

250A

Assessment of structural fabric of building: Monuments? Renovation?

Zoning and surrounding plots :Can we expand?

Building A 601

As-Is Evaluation

Description

Suitability Evaluation

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Slide 10

The Basic Evaluation Collects Key Product, Production, and Floor Space Information As Well As Restrictions

I Products:Product Family Definition

II Manufacturing:Value Stream Analysis

III Building andProperty:

Product Families

Product Attributes

Product Lifespan

Volumes

Modules and Part Lists

Order Sizes

Insourcing/Outsourcing

Manufacturing Technologies

Machine Lists

List of workstations

Work schedules

Value streams

Value Stream KPIs (Throughputtimes, Inventory Levels)

Machine/Process KPIs (Processing Times, OEE,..)

Manpower (Qualifications, shiftmodel, …)

Plant structure (Topology, land development, zoning, access to roads)

Building Structure (Floorplan, floor space quality, coloumn grid, buildingcondition)

Floor space structure(qualitative and quantiatve)

Arrangement of equipment

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Slide 11

Step 1: Products – Product Family Definition andProduction Segmentation

The top-down approach toforming product familiesconsiders the order ofoperations of productattributes .

2. By common attributes

geometry

function

variants work content

handlingraw material

weight

product type

1. By order of operations

washing

final assembly

pre-assembly assembly

processingprocessing

cleaning

painting

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Slide 12

Beginning: Modelling the Customer by Calculating the Customer Demand Rate (Takt Time)

Effective working time per day

Customer requirement per day

Target: Achieving a customer-oriented production

Calculation: Modelling the customer by calculating the takt

time

Translation: Power Inc., Cardiff buys a single spring every 9 sec (during our working hours).

Takt Time =

Example: Spring Ltd., Bridgend

Power Inc. Cardiff

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Slide 13

VSM: Depicts the Current State of the Complete Production and Improvement Potential

Drawing a Value Stream Map:Take a snapshot of production flow at shopfloor level as well as in the office

Result:Understanding of actual production flow in factory• Transparent depiction of complete production

flow with all important parameters• Identification of potential for improvements

Raw material

Value stream

Finished product

ProcessProcess Process

customerSupplier

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Slide 14

VSM: a Clear Overview of Current Operationsand Improvement Potential

production lead time = 22,55 dprocessing time = 182 sec.

Example: Manufacturing and assembly of an oil filter

process(with main para-

meters)

material flow(incl.

stock)

customer

supplierinformation flow

Advantages:

Change of perspective:Focus on logistical linkages of technical processes instead of processes in isolation

The Big Picture:material and information flow completely depicted on one sheet

Communication:clear and simple icons

Performance Check #1: ‘Flow Rate’Ratio of total processing time (value-add) and lead time shows the distance from the ideal state.

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Slide 15

VSM: Balancing Chart

Performance Check #2:The simple comparison of process performance (cycle time) with customer demand (takt time) shows bottlenecks and waste

7

4

78,5

7,56

5

1,35

0,9

9,4

0

2

4

6

8

10

[V=85%] [V=90%]

Winden Anlassen Schleifen Kugel-

strahlen

Warmsetzen Montieren Prüfen

0

9 Takt time TT

Cycle time CTof all production processes

bottleneck

waste

Example:Production of damping coupler springs

Balancing Chart shows how the capacity each of each process stacks up to the customer demand

Winding Annealing Grinding Grit plasting

Hot rolling

Assembly Check

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Slide 16

Each process places demands on the factory layout

2Universalität

Kompatibilität 5

5Skalierbarkeit

1Mobilität

JIS

Kleben

1

Vormontieren Mechnik

1

Montieren

4

Verladen

1

Extra Fundament

Montagehalle H > 5m; 3 to/qm

Kunststoff- Spritzen

1

1Skalierbarkeit

4Universalität

Kompatibilität 5

2Mobilität

1Universalität

Kompatibilität 5

2Mobilität

2Skalierbarkeit

1Universalität

Kompatibilität 5

5Mobilität

5Skalierbarkeit

1Universalität

Kompatibilität 5

5Skalierbarkeit

5Mobilität

5Universalität

Kompatibilität 5

5Skalierbarkeit

1MobilitätMo

nu

men

t

Mo

nu

men

t

Ven

do

rPart

s

Ven

do

rPart

s

Process types Requirement on factory design

Monuments Height, Fundament, not block material flow, expansion

High Cleanliness Protection from contamination (Isolation)

Emitter Isolated from sensitive processes

Machining/Fabrication Good connection to incoming goods, assembly

Assembly Good connection to incoming goods, machining

Material Handling Accessibility to all direct areas requiring or delivering materials

Indirect Not block material flow, expansion

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Slide 17

Intake of Process Requirements, Evaluation ofTransformability during value stream mapping

Process

2□

theoretical output of each resource/machine per shift

net-amount of shifts without set-up times, maintenance, etc.

number of different resource types within one process due to different product variants

required floor space including worker moving space, logistic ways, buffering, etc. (if unknown doubled footprint space)

building requirements / equipment

media (e.g. electricity, pressurized air, gas, cooling water, …)

emissions which might require containment (e.g. dust, noise, vibrations,…)

e.g. extinguishing systems, access security, industrial safety

ambient conditioning

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Slide 19

Clustering the processes by layout-requirements can cut costs, increase flexibility

Evaluation of adaptability:

transformable without limitation

Opportunity costs to achieve full transformability

x

€

Special technologies must be structurally separated

Technical ‘Monuments’ determined

Large, unmovable, unscalable equipment hinders transformability ("purple cross")

For the other technical modules, three combination groups, which differ only by the four cleanliness classifications areCombinations without structural separation:

A: low cleanliness

B: normal-clean assembly

C: high-clean assembly areas

© Fraunhofer IPA

Slide 20

The Factory Planning Method of Fraunhofer in Accordance with the VDI Guideline 5200*

Phase 1-3Pre-planning

Phase 4 Ideal planning

Project-initialisation

Kick-Off

Weak point-Workshop Real-Layout

variants

Greenfield

Brownfield

Value stream design

Dimensioning

Ideal-Layout

Expansion Planning

Phase 5Real planning

Development of transformation scenarios and construction steps

Value-Benefit Analysis

Setting Objectives

Defining Strategy

Establishing Restrictions, Constraints and Assumptions

Establishing a Basis

Product family definition

Value stream analysis

Capacity assessment

Space analysis

Storage analysis

Material flow analysis

l

II

III V.2IV.1 V.1

IV.2

VDI: Association of German Engineers

© Fraunhofer IPA

Slide 21

A Customer-Driven Production by Synchronizing the Rhythms of Manufacturing and Sales

78

78,2 7,5

8,6

1,350,7

0,458,4

7,78,7

0

2

4

6

8

10

[V = 85%] [RZ ? 10%] [V = 95%]

Winden Anlassen Schleifen Kugel-

strahlen

Warmsetzen Montieren &

Prüfen

0,0

9,0

Guideline 1: Adjusting to takt time (balancing)The available production capacity has to match the customer takt time

CT of any process should match

TT of product family

Process Balance Chart

Takt time TT Sets the target for thesystem capacities

Cycle time CT of all production processes

Example: Spring Ltd., Bridgend

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Slide 22

The Continuous Flow Production Provides the Shortest Throughput time, Requires Less Space, Improved Recognition of Quality Defects

Possible restrictions:• Spread locations of machines

• Low reliability

• Unbalanced processing times

• Significant change over times

Co

nti

nu

ou

s Flo

w

Batc

h P

roce

ssin

g

Initial situation:• Batch production based on MRP forecast

data

Guideline 2: Process integrationCreate continuous flow between consecutive production processes by combination if possible

Process 1 Process 2

processing

time = 1 min.processing

time = 1 min

processing

time = 1 min

production lead time/piece: 2 min.production lead time/lot: 6 min.

Production lead time of order: 5 * 2min = 10 min + buffer

Process 1a Process 1b

processing

time = 1 min

integration of processes

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Slide 23

In Lean Production the Material Flow Is Consumption-Oriented without any Forecast-Based Stock (Push-Control)

FIFOFIFO

max.3 pcs. Guideline 3: FIFO-coupling

Consecutive production processes, which can’t be integrated in continuousflow production for technological or organizational reasons, should be coupled as line production with limited inventory level as far as possible.

Process 1 Process 2

Production- or Signal-Kanban

withdrawal-Kanban

20

Supermarket

20 Guideline 4: Kanban-ControlProduction processes for multiple usage parts with high changeover times, low reliability or highly differing cycle times should be connected by lotproduction with supermarket stores.

supply-Process customer-Process

12

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Slide 24

Orders Are ‘Levelled’ with Respect to Size andMix in a Waiting Queue and Released at a Single Scheduling Point

Guideline 5: Pacemaker processEvery value stream should be controlled at one well-defined point in the value stream (at the pacemaker). This is the order-entry point.

Production order

Process 1 Process 3pacemakerFIFOFIFO

Guideline 7: Levelling production mixThe sequence of production orders has to be mixed with respect to the variantsOXOXnnn

n

800

nnn

n

830

nnn

n

900

nnn

n

930

nnn

n

1000

nnn

n

730

33 627 002

32 130 000

nnn

n

nnn

n

nnn

n

nnn

n32 660 105

31 466 000

31 463 000

1030700630600Produktvarianten

nnn

n

800

nnn

n

830

nnn

n

900

nnn

n

930

nnn

n

1000

nnn

n

730

33 627 002

32 130 000

nnn

n

nnn

n

nnn

n

nnn

n32 660 105

31 466 000

31 463 000

1030700630600Produktvarianten

Spalten: Freigabe-Intervalle

Guideline 6: Definition of release unitThe release of production orders has to be done in small, standard sizes to create an even production volume

Waiting queue

average

demand

maximum

demand

time

qu

an

tity

average

demand

maximum

production volume

time

qu

an

tity

© Fraunhofer IPA

Slide 25

Order Release at One Scheduling Point Only After Levelling in Waiting Queue with Respectto Volume and Production Mix

Customer

Waiting queue with fluctuating length, which consists of production

orders in a well-defined release quantity in each case

Guideline 6: Definition of release unitsThe release of production orders has to be done in small, standardized dimensioned amounts to reach an even production volume.

Definition of sequence tolevel the material request

OXOX

Guideline 7: Levelling the production mixThe sequence of production orders has to be thoroughly intermixed concerningthe variants to reach a balanced production variety.

average

demand

maximum

demand

time

qu

an

tity

average

demand

maximum

production volume

time

qu

an

tity

Waiting queue

© Fraunhofer IPA

Slide 26

In Customer-Specific Production, the Release Unit Has to Be Defined and Steered by the Bottleneck

Guideline 8: Bottleneck controlThe release of production orders is subject to quantity or sequence-related control depending on possible capacitive and/or restrictive downstream bottlenecks.

variant C 18 p.

variant B 20 p.

Cutting Drilling Welding Packing

Productioncontrol

FIFO FIFO FIFO

(bottleneck)

CTABC = 70 CTA = 160CTBC = 0

CTA = 180CTB = 90CTC = 100

CTABC = 60

Release every 30 min. variant A

10 p.

18 201020

Target: Adjusting production capacity to the

capacity of the bottleneck Avoiding overproduction in other processes In addition: sequencing restrictions

may be considered

Approach: After finishing an order, the bottleneck gives

an release s ignal Depending on the cycle time at the

bottleneck, a release unit can have different quantities per variant

© Fraunhofer IPA

Slide 27

Material flow structure and a to scale machine arrangement and floor space structure belong to an ideal layout

Defined final configuration s tage

path 1

Eck-Struktur

FGeh.

FKolb.

M

A

FGeh.

FKolb.

M

A

FGeh.

FKolb.

M

A

FGeh.

FKolb.

M

A

Abgewandelte U-Struktur

FahrwegFahrweg

Selection of Base Structures

Block Flow withMaterial Flow

Transformation scenarios confirm

adaptability

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Slide 28

Ideal planning: Layout Preselection

The ideal layout has to be chosen according to the three criteria along the following decision tree

single

production level

decentralised

logistics

Layout 1: I-shape

without

monument

multiple

production level

without

monument

with two

monuments

with one

monument

centralised

logistics

Layout 2: U-shape

centralised

logistics

Layout 3:

I-shape split

centralised

logistics

Layout 4: L-shape

centralised

logistics

Layout 5:

U-shape split

single + multiple

production level

with one

monument

decentralised

logistics

Layout 7: Z/I-shape

with two

monuments

decentralised

logistics

Layout 6: Z-shape

© Fraunhofer IPA

Slide 29

Production levels: single

Monuments: no

Logistics: decentralised

Material-Flow: I-shape

Production-Flow: I-shape

Extension: vertically to production-flow

extension logistic areaproduction area indirect areas production-flow material-flow monumentM manufacturingM assemblyA

one

production level

decentralised

logistics

Layout 1: I-shape

without

monument

multiple

production level

without

monument

with two

monuments

with one

monument

centralised

logistics

Layout 2: U-shape

centralised

logistics

Layout 3:

I-shape split

centralised

logistics

Layout 4: L-shape

centralised

logistics

Layout 5:

U-shape split

one + multiple

production level

with one

monument

decentralised

logistics

Layout 7: Z/I-shape

with two

monuments

decentralised

logistics

Layout 6: Z-shape

Layout 1: I-Shape

© Fraunhofer IPA

Slide 30

The Factory Planning Method of Fraunhofer in Accordance with the VDI Guideline 5200*

Phase 1-3Pre-planning

Phase 4 Ideal planning

Project-initialisation

Kick-Off

Weak point-Workshop Real-Layout

variants

Greenfield

Brownfield

Value stream design

Dimensioning

Ideal-Layout

Expansion Planning

Phase 5Real planning

Development of transformation scenarios and construction steps

Value-Benefit Analysis

Setting Objectives

Defining Strategy

Establishing Restrictions, Constraints and Assumptions

Establishing a Basis

Product family definition

Value stream analysis

Capacity assessment

Space analysis

Storage analysis

Material flow analysis

l

II

III V.2IV.1 V.1

IV.2

VDI: Association of German Engineers

© Fraunhofer IPA

Slide 31

Through real world adaptations multiple real layoutvariants are created

Preselection AssessmentBasis for decision

making

Quantitative evaluation:

Investments

Operating costs

Qualitative evaluation

Selection of best real variants

Costs

Bene

fits

Overview of costsand benefits

© Fraunhofer IPA

Slide 32

Future Challenges3

Factory Planning Methodology2

Factory Planning at Fraunhofer IPA1

Agenda Kick-Off Meeting

© Fraunhofer IPA

Slide 33

Future Challenges

Shorter factory lifecycles, more brownfield planning

‚Transformable‘ and ‚Flexible‘ Factories

Human factor plays an increasingly important role

Representative Factories, Work/Life Fusion

Factory buildings help manage the increasing production complexity

Intelligent factory buildings: material flow tracking with scannerson ceiling or column grid, inventory surveillance, processmonitoring, quality control, communication

© Fraunhofer IPA

Slide 34

F r a u n h o f e r I P A

We are looking forward to a successful cooperation!

Contact person :

Factory Planning and Production OptimizationNobelstraße 1270569 Stuttgart

Erin SheehanTel. +49 (0) 711 / 970 - 1421E-Mail: erin.sheehan@ipa.fraunhofer.de

F u t u r e

I n n o v a t i o n