1、Warehouse Simulation GameWarehouse Simulation Game23 September 20232 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 proces
2、s,and to 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 wareho
3、using To 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 timeObjectives23 September 20233Agenda Case introduction Practice round Round 1“Waste”Round 2“Flow”Round 3“
4、Takt”Summary 23 September 20234Run(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”23 September 20235Agenda Case introduction Practice round R
5、ound 1“Waste”Round 2“Flow”Round 3“Takt”Summary 23 September 20236Context23 September 20237 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
6、deliver the quality,cost,and delivery promises 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 instruction23 September 202381Receive and check packing2Cut packing into quarter sheets3Prepare box,a
7、dd pick list4Pick pack items required for orderQCShip&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
8、 time(minutes)Indexed against round 1(=100%)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
9、ion area Cost-105.Space#tables used Cost-100 6.Personnel#employees Cost-2007.Overhead Cost-300 Fixed8.Productivity#orders delivered/#employees9.Lead TimeTime it takes to finish first order23 September 20239Agenda Case introduction Practice round Round 1“Waste”Round 2“Flow”Round 3“Takt”Summary 23 Sep
10、tember 202310Agenda Case introduction Practice round Round 1“Waste”Round 2“Flow”Round 3“Takt”Summary 23 September 202311Round 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 t
11、o the next process(material handler can only take one batch at a time)Every operator should work as fast as possible1.Receipt5.Inspect/ship4.Pick packing3.Preparation2.CuttingLayout is by process2m6.Material handler23 September 202312Simulation round 1 Customers demand:24 orders in 10 minutes23 Sept
12、ember 202313Time23 September 202314UnitsGoalNumber 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 1 analysis:
13、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 Cost-100
14、6.Personnel#employees Cost-2007.Overhead Cost-300Fixed8.Productivity#orders delivered/#employees9.Lead TimeTime it takes to finish first order23 September 202315Round 1 analysis:Learning pointsWhat went well?What were the most significant problems?WIP levelsBottlenecksWaiting timeWorker stress/bored
15、omTeam 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?23 September 202316InflexibilityWasteVariabilityReducing waste(“muda”)mea
16、ns lowering costs,improving quality and achieving consistent 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”)mea
17、ns improving process reliability i.e.lowering cost and improving qualityThree lean enemies waste,inflexibility and variability address all operational targets23 September 202317Typical learning points23 September 202318 The layout is poor:-Does not support this product-Prevents people understanding
18、the system-Hinders communication Operators often have nothing to do:-Batch manufacture-Waiting for material handler-System 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
19、to work inModule:WasteModule:One Piece FlowModule:Kanban8 types of wasteOverproductionProduce 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 qualit
20、y 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 Training2023 September 2023Continuous Flow Processing is often the first step to
21、 removing wasteThe traditional layout and configuration of processes and departments creates wasteContinuous flow processing23 September 202321Line design examplesAINVBCDINVINVINVEINVFBatch ProductionIsolatedABCDEFContinuous FlowLinear“U”-Shaped ParallelABCDEFCBADEFMaximized Flexibility&Motion Econo
22、myFeedbackReduced InventoryReduced floor spaceClear production status(short/full)Reduced floor spaceIncreased operator flexibility across stepsReduced floor spaceGood for pair-product production23 September 2023221 piece flow and pull system Final customer dictates sequence and pace:pull system Cust
23、omer-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 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
24、1 single part between each process23 September 2023231.Receipt3.Set up2.Cut4.Pick pack5.QualityFinalcustomer Agenda Case introduction Practice round Round 1“Waste”Round 2“Flow”Round 3“Takt”Summary 23 September 202324Round 2:Summary of design changes23 September 202325 Improved layout(to optimize mat
25、erial flow)Continuous flow processing-Batch size of 1(from operator 3 onwards)-No need for internal packaging-Work is passed directly between operators Material handler freed up to study performance Pull system implemented to control inventory and to allow customer to set pace-Each station works onl
26、y 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 secondsSimulation round 2 Customers demand:24 orders in 10 minutes23 September 202326Time23 September 202327UnitsGoalNumber of good orders deliveredPercen
27、t 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 2 analysis:Tracking key performance indicatorsKPIDescriptionCost or RevenueComment1.Quantity
28、#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-300Fixed8.Productivity#orders deliv
29、ered/#employees9.Lead TimeTime it takes to finish first order23 September 202328Round 2 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
30、these be resolved?QualityFirst pass yieldCostProductivityInventoryDelivery%on time to customerLead timePerformanceHow can performance be improved?23 September 202329Module:Takt TimeModule:Workforce FlexibilityModule:Poka Yoke11)21)3456Operator Line is clearly imbalanced What should be done?How much
31、work should each person have?1)Assume these processes must remain batch operation1312331030Analyzing the problem of waitingTime per order,Seconds23 September 202331Solving the problem of waitingTime per order,SecondsThe correct pace of productionexactly achieves customer demand in the production tim
32、e 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 seconds per orderTakt time=25s1)Assume these processes must remain batch operation11)21)3456Operator1312331
33、03023 September 202332Solving the problem of waitingTime per order,Seconds-Line BalancingTakt time=25s1)Assume these processes must remain batch operation11)21)3456Operator1312252325Auxiliary waste due to isolated batch processes1)Work elements have to be redistributed to ensure every process will p
34、roduce 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 improvements are possible23 September 202333Agenda Case introduction Practice round Round 1“Waste”Round 2
35、“Flow”Round 3“Takt”Summary 23 September 202334Round 3:Summary of design changes Line balanced to takt time Flexible workforce In-station quality checks(Poka Yoka)23 September 202335Simulation Round 3 Customers demand:24 orders in 10 minutes23 September 202336Time23 September 202337UnitsGoalNumber of
36、 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 analysis:Tracking key performance indicatorsKPIDescriptionCost
37、 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-1006.Personnel#employees Cost-2007.Overhead Cost-300Fixe
38、d8.Productivity#orders delivered/#employees9.Lead TimeTime it takes to finish first order23 September 202338Round 3 analysis:Learning pointsWhat went well?What were the most significant problems?WIP levelsBottlenecksWaiting timeWorker stress/boredomTeam interactionDefect rateWhat were the root cause
39、s of these problems?How can these be resolved?QualityFirst pass yieldCostProductivityInventoryDelivery%on time to customerLead timePerformanceHow can performance be improved?23 September 202339Analyzing opportunity for growth Time per order,SecondsCurrent takt time of 25 seconds 1)Assume these proce
40、sses 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 rebalanced at new takt time,and further cross train
41、ing will be necessary23 September 202340Rebalanced 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 processesFrom 25s.To 15s.!23 September 2023
42、41Review 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:-Eight types of waste-Continuous flow
43、processing-Takt time23 September 202342Agenda Case introduction Practice round Round 1“Waste”Round 2“Flow”Round 3“Takt”Summary 23 September 2023438 types of wasteOverproductionProduce too much or too fastOver processingMore steps in the processes than requiredTalentNot fully utilizing the talent of
44、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 Training4423 September 2023
