1、Warehouse Simulation GameWarehouse Simulation Game12/16/20222 During the Warehouse Simulation Game the principles of Lean are shown and we ask you to apply them on the spot The game makes you think about what is value add for the customer,what is the employees role and value add in the process,and t
2、o let go of traditional roles and seemingly independent tasks The goal is to make Lean more concrete and easier to apply It is an interactive way to get you acquainted with the Lean principles.To understand the opportunity to improve quality,cost,and delivery performance in traditional warehousing T
3、o gain an awareness of how JIT warehousing differs from traditional warehousing To gain an appreciation of the following LEAN terms:-Eight types of waste-Continuous flow processing-Takt timeObjectives12/16/20223Agenda Case introduction Practice round Round 1“Waste”Round 2“Flow”Round 3“Takt”Summary 1
4、2/16/20224Run(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”12/16/20225Agenda Case introduction Practice round Round 1“Waste”Round 2“Flow”Ro
5、und 3“Takt”Summary 12/16/20226Context12/16/20227 You are 6,12,18,or 24 employees in a warehouse that produces kits for the consumer industry The packing for these products requires special treatment,but has a similar setup The company is currently unable to deliver the quality,cost,and delivery prom
6、ises made to its customersOperation Each order is made from sheet of A4,1 photo film tube and 2 to 12 paperclips Each operator has a workstation with 1 work instruction12/16/202281Receive and check packing2Cut packing into quarter sheets3Prepare box,add pick list4Pick pack items required for orderQC
7、Ship&5Check quality,seal order6Material handlerUnitsGoalNumber 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%)Track
8、ing 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 Cost-100 6.Pe
9、rsonnel#employees Cost-2007.Overhead Cost-300 Fixed8.Productivity#orders delivered/#employees9.Lead TimeTime it takes to finish first order12/16/20229Agenda Case introduction Practice round Round 1“Waste”Round 2“Flow”Round 3“Takt”Summary 12/16/202210Agenda Case introduction Practice round Round 1“Wa
10、ste”Round 2“Flow”Round 3“Takt”Summary 12/16/202211Round 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 one batch at a time)
11、Every operator should work as fast as possible1.Receipt5.Inspect/ship4.Pick packing3.Preparation2.CuttingLayout is by process2m6.Material handler12/16/202212Simulation round 1 Customers demand:24 orders in 10 minutes12/16/202213Time12/16/202214UnitsGoalNumber of good orders deliveredPercent wrong pi
12、cked/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 RevenueComment1.Quantity#of correc
13、t 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-300Fixed8.Productivity#orders delivered/#empl
14、oyees9.Lead TimeTime it takes to finish first order12/16/202215Round 1 analysis:Learning pointsWhat went 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
15、?QualityFirst pass yieldCostProductivityInventoryDelivery%on time to customerLead timePerformanceHow can performance be improved?12/16/202216InflexibilityWasteVariabilityReducing waste(“muda”)means lowering costs,improving quality and achieving consistent throughput(service level)Customer demandOutp
16、utCustomer 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 improving qualityThree lean enemies waste,inflexib
17、ility and variability address all operational targets12/16/202217Typical learning points12/16/202218 The layout is poor:-Does not support this product-Prevents people understanding the system-Hinders communication Operators often have nothing to do:-Batch manufacture-Waiting for material handler-Sys
18、tem empty at start of shift High levels of inventory tie up cash and create a quality risk Despite a lot of activity,the customer demand has not been met It is a frustrating system to work inModule:WasteModule:One Piece FlowModule:Kanban8 types of wasteOverproductionProduce too much or too fastOver
19、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 that is inexcess of the minimum required to p
20、erform the tasksWaitingWaiting for parts,until someone else has completes his cycleLean Introduction Training2012/16/2022Continuous Flow Processing is often the first step to removing wasteThe traditional layout and configuration of processes and departments creates wasteContinuous flow processing12
21、/16/202221Line design examplesAINVBCDINVINVINVEINVFBatch ProductionIsolatedABCDEFContinuous FlowLinear“U”-Shaped ParallelABCDEFCBADEFMaximized Flexibility&Motion EconomyFeedbackReduced InventoryReduced floor spaceClear production status(short/full)Reduced floor spaceIncreased operator flexibility ac
22、ross stepsReduced floor spaceGood for pair-product production12/16/2022221 piece flow and pull system Final customer dictates sequence and pace:pull system Customer-supplier relation at each process step(e.g.process 3 is customer of process 2 and process 3 is supplier of process 4)The system is usin
23、g 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 process12/16/2022231.Receipt3.Set up2.Cut4.Pick pack5.QualityFinalcustomer Agenda Case introduction Practice roun
24、d Round 1“Waste”Round 2“Flow”Round 3“Takt”Summary 12/16/202224Round 2:Summary of design changes12/16/202225 Improved layout(to optimize material flow)Continuous flow processing-Batch size of 1(from operator 3 onwards)-No need for internal packaging-Work is passed directly between operators Material
25、handler freed up to study performance Pull system implemented to control inventory and to allow customer to set pace-Each station works only if demand exists at the next downstream-Demand is signaled by empty Kanban space(WIP storage)-Customer pulls 1 order from last process every 25 secondsSimulati
26、on round 2 Customers demand:24 orders in 10 minutes12/16/202226Time12/16/202227UnitsGoalNumber 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 areaAverage throughput time(minutes)Ind
27、exed 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 Cost-504.WIPNumber of 1/4 paper sheets in product
28、ion 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 order12/16/202228Round 2 analysis:Learning pointsWhat went well?What were the most significant problems?WIP levelsBottl
29、enecksWaiting 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 performance be improved?12/16/202229Module:Takt TimeModule:W
30、orkforce FlexibilityModule:Poka Yoke11)21)3456Operator Line is clearly imbalanced What should be done?How much work should each person have?1)Assume these processes must remain batch operation1312331030Analyzing the problem of waitingTime per order,Seconds12/16/202231Solving the problem of waitingTi
31、me 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=Available time Customer demand=10 minutes*60 seconds 24 orders=25 sec
32、onds per orderTakt time=25s1)Assume these processes must remain batch operation11)21)3456Operator131233103012/16/202232Solving the problem of waitingTime per order,Seconds-Line BalancingTakt time=25s1)Assume these processes must remain batch operation11)21)3456Operator1312252325Auxiliary waste due t
33、o isolated batch processes1)Work elements have to be redistributed to ensure every process will produce at customer driven pace Cross training will be necessary Productivity will be improved Non value added time focused at one operation:time may be usefully filled until further productivity improvem
34、ents are possible12/16/202233Agenda Case introduction Practice round Round 1“Waste”Round 2“Flow”Round 3“Takt”Summary 12/16/202234Round 3:Summary of design changes Line balanced to takt time Flexible workforce In-station quality checks(Poka Yoka)12/16/202235Simulation Round 3 Customers demand:24 orde
35、rs in 10 minutes12/16/202236Time12/16/202237UnitsGoalNumber 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 throughput time(minutes)Indexed against round 1(=100%)Round 3
36、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.WIPNumber of 1/4 paper sheets in production area Cost-105.Space#tables used
37、 Cost-1006.Personnel#employees Cost-2007.Overhead Cost-300Fixed8.Productivity#orders delivered/#employees9.Lead TimeTime it takes to finish first order12/16/202238Round 3 analysis:Learning pointsWhat went well?What were the most significant problems?WIP levelsBottlenecksWaiting timeWorker stress/bor
38、edomTeam interactionDefect rateWhat were the root causes of these problems?How can these be resolved?QualityFirst pass yieldCostProductivityInventoryDelivery%on time to customerLead timePerformanceHow can performance be improved?12/16/202239Analyzing opportunity for growth Time per order,SecondsCurr
39、ent takt time of 25 seconds 1)Assume these processes must remain batch operation11)21)3456Operator1312252325 Company now has immediate opportunity to meet higher demand with existing trained workforce Benefits of flexible line can be captured by reconfiguring with more personnel Line needs to be reb
40、alanced at new takt time,and further cross training will be necessary12/16/202240Rebalanced line for growth in round 4Time per order,Seconds1)Assume these processes must remain batch operation11)21)3456Operator1312252325Productivity will be further improved because of greater utilization of batch pr
41、ocessesFrom 25s.To 15s.!12/16/202241Review of Objectives To understand the opportunity to improve quality,cost,and delivery performance in traditional warehousing To gain an awareness of how JIT warehousing differs from traditional warehousing To gain an appreciation of the following LEAN terms:-Eig
42、ht types of waste-Continuous flow processing-Takt time12/16/202242Agenda Case introduction Practice round Round 1“Waste”Round 2“Flow”Round 3“Takt”Summary 12/16/2022438 types of wasteOverproductionProduce too much or too fastOver processingMore steps in the processes than requiredTalentNot fully util
43、izing the talent of all employeesMotionEvery motion that is not adding valueDefects/ReworkRepairing bad quality or mistakesTransportationMovements between processesInventoryEverything that is inexcess of the minimum required to perform the tasksWaitingWaiting for parts,until someone else has completes his cycleLean Introduction Training4412/16/2022
