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Improve Profits and Reduce Cycle

Time with Manufacturing Cells and


Simulation
Jerry W. Hoskins
Manufacturing Engineering, Inc.
International Lean Manufacturing Conference, 1998

1998, Manufacturing Engineering, Inc.

Manufacturing Cells and


Simulation
Benefits

Our Experience
Industry Weeks Census of Manufacturers
The Cellular Manufacturing Process
The Design Process with Simulation
Implementation Examples

1998, Manufacturing Engineering, Inc.

The Market Need


On-time

delivery
High quality
Responsive and flexible
Excellent value
Lean, responsive suppliers

1998, Manufacturing Engineering, Inc.

CHARACTERISTICS OF
TRADITIONAL MANUFACTURING

Production scheduled based on forecast

Build to inventory

Large batch sizes

Layout based on department/function

Central store room or production floor used for product staging

Lot sampling used to check product quality


COMPANIES USING THESE APPROACHES HAVE
OPPORTUNITIES TO MAKE IMPROVEMENTS
1998, Manufacturing Engineering, Inc.

Results of Traditional Mfg.


Lack

flexibility
Long cycle time
Lack responsiveness
Profits may be shrinking
Hard to focus on strategic issues

1998, Manufacturing Engineering, Inc.

WHAT IF I TOLD YOU IT IS POSSIBLE TO.

Decrease your Mfg cycle times from weeks to days (70% or more)
Reduce your inventories 50% or more
while increasing your customer service levels

Increase capacity 50% or more in your current facilities

Maintain or increase your throughput while


-- Reducing your indirect labor by 50% or more
-- Reducing your direct labor by 10% or more
1998, Manufacturing Engineering, Inc.

WHAT IF I TOLD YOU IT IS POSSIBLE TO.

Improve your flexibility in reacting to changes in requirements

Allow more strategic management focus

Increase shipping and billing frequencies,


thus improving cash flow

Bottom-line: IMPROVE NET INCOME

1998, Manufacturing Engineering, Inc.

All of this can be achieved with


Manufacturing Cells

1998, Manufacturing Engineering, Inc.

CHARACTERISTICS OF
MANUFACTURING CELLS

Processing:

--

A part moves to a production operation,


-- Is processed immediately, and
-- Moves immediately to the next operation

With short order-to-ship cycles times, production is based on orders


rather than forecasts

Inventories (RM, WIP, & FG) are minimized

Quick changeovers of machines & equipment allow different products


to be produced in small batches with one-piece flow

Layout is based on product flow

Quality of each item is assured during processing


1998, Manufacturing Engineering, Inc.

Characteristics of Cells
No competition for these resources
Resources are focused on producing the
product rather than maximizing the efficiency
In-process inspection
Team environment
Rapid problem resolution
Easy to process exceptions

1998, Manufacturing Engineering, Inc.

Example Manufacturing Cell

1998, Manufacturing Engineering, Inc.

INDUSTRY WEEK MAGAZINE


CENSUS OF MANUFACTURERS
December 1, 1997
Identified and Analyzed
Best Manufacturing and Performance Practices

1998, Manufacturing Engineering, Inc.

INDUSTRY WEEK MAGAZINE


CENSUS OF MANUFACTURERS (12/1/97)
CONTINUOUS FLOW PRODUCTION
JUST-IN-TIME INVENTORY CONTROL

NOT ADOPTED

WIDELY
ADOPTED

CYCLE TIME (hrs)

38

18

CUSTOMER LT (days)

20

10

ON-TIME DELIVERY

92%

95%

TOTAL INVENTORY TURNS

5X

10X

WIP INVENTORY TURNS

10X

20X

1998, Manufacturing Engineering, Inc.

INDUSTRY WEEK MAGAZINE


CENSUS OF MANUFACTURERS (12/1/97)
QUICK MACHINE CHANGEOVER
(SET UP TIME REDUCTION) PROGRAMS
NOT ADOPTED

WIDELY
ADOPTED

CYCLE TIME (hrs)

48

16

CUSTOMER LT (days)

21

10

ON-TIME DELIVERY

90%

96%

TOTAL INVENTORY TURNS

5X

10X

WIP INVENTORY TURNS

9X

18X

1998, Manufacturing Engineering, Inc.

Elements of Lean Manufacturing


- Dr. Arlie Halls Courses 4

Basic Activities of Mfg.


5 Basic Principles of Lean Mfg.

1998, Manufacturing Engineering, Inc.

4 Basic Activities of Mfg.


- Dr. Arlie Halls Courses Operations
Inspection
Transportation
Storage

1998, Manufacturing Engineering, Inc.

M
H
H
H

5 Basic Principles of Lean Mfg.


- Dr. Arlie Halls Courses Employee

Empowerment
Standardized Work
JIT
Quality at the Source
Continuous Improvement

1998, Manufacturing Engineering, Inc.

H
H
Enabler
H
Enabler

The Design Process


Flow

Chart the existing process

ISO 9000 process representation


Develop

an assembly diagram
Allocate products to cells
Establish a team
Determine the Takt time
Integrate store room
Describe process steps within the cell

Communicate
1998, Manufacturing Engineering, Inc.

S
i
m
u
l
a
t
e

The Design Process


- Continued

Equally load (balance) each employee


Simulate and modify
Implement
Nurture the team
Add JIT
Continuously improve

Communicate
1998, Manufacturing Engineering, Inc.

S
i
m
u
l
a
t
e

Simulation as an Improvement Tool


Powerful

tool for evaluating performance


Throughput, cycle time, shipments, and cost
Bottlenecks in the process and allow the
designer to evaluate alternative solutions
Strong advantage in dealing with variability
No special programming
Animation required
Ability to import CAD drawings required
3D if desired
1998, Manufacturing Engineering, Inc.

Case Study
Apparel

Manufacturing Cell
Team Environment
Results Achieved

1998, Manufacturing Engineering, Inc.

Apparel Manufacturing Cell


PROBLEM

Manufacturer needed to cut cost and reduce cycle


time
SOLUTION

Process flow developed


Assembly diagram developed
3 cells defined for the business

1998, Manufacturing Engineering, Inc.

Cell Layout
33
33
30

34

1998, Manufacturing Engineering, Inc.

Results
Shipments up 54%

Cycle Time down 75%

1998, Manufacturing Engineering, Inc.

Results
Employees

working as a team
WIP reduced dramatically
Ability to easily expedite orders
Enabled change in marketing strategy
Much less supervision required

1998, Manufacturing Engineering, Inc.

For Additional Information


Jerry W. Hoskins
Manufacturing Engineering, Inc.
614-487-8985
hoskinsjw@MfgEng.com
www.MfgEng.co

1998, Manufacturing Engineering, Inc.

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