MTM for lean process design and world class performance assessment is a successful strategy to improve productivity and reduce costs
PzM SummitWien, 12 & 13 November 2007
International MTM Directorate
Who we are
Wien, 12 November 2007 G. Caragnano - IMD Executive Director 3
IMD: The Mission and the Goals
IMD is dedicated to achieving global leadership and to creating value for its two major stakeholders:
1. National MTM Associations2. MTM applicators and instructors (companies,
institutions and individuals)
For more information, please visit our web site at http://www.mtm-international.org
Wien, 12 November 2007 G. Caragnano - IMD Executive Director 4
IMD active membersWEB or Email addressFoundation dateNational MTM Association
www.cpns.co.yu2004Serbia and Montenegro MTM Association
www.mtmdobrasil.com2004Brazilian MTM Association
www.plmtm.com2004Polish MTM Association
[email protected] MTM Association
www.mtm-vereinigung.at2000Austrian MTM Association
www.mtmitalia.it1998Italian MTM Association
www.asocmtmesp.com1990Spanish MTM Association
www.mtm-association.org.za1975South African MTM Association
www.mtmuk.org1964U.K. MTM Association
[email protected] MTM Association
www.dmtm.com1962German MTM Association
www.mtmfr.com1957French MTM Association
www.swissmtm.com1957Swiss MTM Association
www.mtmnorden.com1955Nordic MTM Association
www.mtm.org1951U.S.A. and Canada MTM Association
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IMD Organization
What is MTM
Methods-Time Measurement
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MTM?
A system for defining every human motion that is made, or required for realizing any kind of manual task/ job/ process
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MTM?
Critical analysis of the MTM elementary motions guides the anlyst to improve the work-method by reducing or eliminatingnon-value motions and motion sequences
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MTM assumption - Activities which cannot be quantified....cannot be improved!
Lean Manufacturing assumption (by Taiichi Ohno) - Activities to create and produce a specific product which cannot be identified, analized and linked to each other....cannot be modified, eliminated or improved.
MTM provides the bricks...... ....to design muda-free processes
MTM for Process Design
It is clear how these two assumptions are strictly related to each other. MTM’s scientific approachleads almost automatically to elimination of wasteand improvements in:
• Workplace• Layout• Machinery & Equipment• Ergonomics
With additional positive effects on:
• Work sequences• Operations• Process flow• Operator satisfaction
Wien, 12 November 2007 G. Caragnano - IMD Executive Director 10
MTM is complementary to Lean Manufacturing
Recognizing and Eliminating MUDA
Standardizing work/processes
Balancing the work flow
Pointing to method/process improvements
Defining takt time and cycle times
Improving health, safety and satisfaction (ERGONOMICS)
TPM (OEE) and reduction of C-O times
Improve Quality
....
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Proprietary data cataloguesProprietary data catalogues
Basic motions
Motion sequencies
Basic operations
Operations
Operation sequence
MTM-1(’40)
MTM-2(’60)
UAS e SAM(’80)
MEK(’80)
MEKData blocks
standard
UAS/SAMData blocks
standard
Mass production
Batch production
Job shop production
6
5
4
3
2
1
Data condensation
level
Function
Official MTM SystemsAnalysis
cost
100
30
10
5
>1
< 30 sec2 min.> 20 min.Tc
(low) (high)Method Level
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MTM Data condensation level
R
G
MP
RL
reach
grasp
moveposition
release R + G + RL
M + P
get
put
Get + Place
Level 1 Level 2 Level 3
MTM-1 MTM-2 UAS
Performance 100% 100% 100%
Process deviations
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The advantages of this scientific approach are numerous:
• We can determine (plan) method and time for manual operations from the product design phase• Focus is set on the designing and improving the work method from an early stage• Work method description is the basis for ergonomic evaluation of workplaces• Operator performance rating is not required• MTM is based on an internationally recognised performance level• Focusing on method and work description from early stages means better training for operators• It focuses on preventing rather than reacting
One ideal MTM system for each production system
Batch production Single part prod.Serial prod.Mass production
UAS / SAM MEKMTM-2MTM-1
MTM techniques tailored to the needs of specific company functions
Operational Logistics
MTM-Logistics
Office work
MTM-MOS
MTM for Process Design
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UAS Analysis EAWS CEN + ISO ergon. norms
Green
Yellow
Red
Low risk - recommended;No action is necessary
Possible risk - not recommended;Redesign, if possible, or take actionsto control the risk
High risk - to be avoided;action to lower the risk is necessary
Link between MTM and Ergonomy
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MTM: Examples
f SX TMU DX f f SX TMU DX f f CODE TMU f CODE TMU f CODE TMUReach 2 screws (jumbled) to 60 cm R60C 22,3 R60C GC80 32,0 GS80 25 AF3 80 AB3 90Grasp screws G4B 9,1 14,0 GC5 GS10 10 AF1 40 AB3 90
9,1 G4BMove to threaded holes (55 cm) M55C 23,5 M-B PC80 41,0 PP80 40Position P2SE 16,2 PP10 25
11,4 ET 30/40 7,0 E
4,5 M4C 21,0 PC516,2 P2SE
Search for thread 2 M2B 4,0 M2B 2 2 PA5 6,0 PA5 2First fastening motion M4B 4,0 M4B PA5 3,0 PA5Motion cycle 5 RL1 10,0 RL1 5 5 GB5 35,0 GB5 5 6 SA15 90 6 ZB1 60 6 ZA 60(5 hand motions) 5 R4A 17,0 R4A 5 5 PA5 15,0 PA5 5
5 G1A 10,0 G1A 55 M4B 20,0 M4B 5
RL1 2,0 RL1Reach screwdriver to 35 cm 14,2 R35B 18,0 GB45 GS45 20 HC2 70 HB3 100
2,0 G1AMove to first screw (35 cm) 16,8 M35C 36,0 PC45 PP45 35Position 19,7 P2SSEPT 50,0 PT 50,0 PT PT 50 PT 50 PT 50Move to second screw 16,8 M35C 36,0 PC45 PP45 35 PC2 40 PB3 50
19,7 P2SSE50,0 PT 50,0 PT PT 50 PT 50 PT 50
Screwdriver aside 6,8 M10B 6,0 PA15 PD10 102,0 RL1
TMU 377,3 370 390 390 490SEC 13,58 13,32 14,04 14,04 17,64
MEKDescription MTM-1 MTM-2 SAM UAS
MTM to control and improvedirect labor productivity
Efficiency and Productivity
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Productivity =
Output all goods and services produced by an organization
Input all resources entering the process
OUTPUT
INPUT
Productivity
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How Operation Time is Made UpTo
tal t
ime
of o
pera
tion
unde
r exi
stin
g co
nditi
ons
Tota
l Wor
k C
onte
nt
Basic work content of product and/or operation(practically the same for similar companies)
Work content added by defects in design or product specification
Work content added by inefficient methods of manufacturing
Non Active Time due to shortcomings of the management(e.g. line balancing, organization, wrong standards)
Ineffective time within the control of the operator
Tota
l ine
ffect
ive
time
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Productivity
Method Performance Utilizationx x
M P Ux x
Method has the biggest potential
Influence Factors of Productivity
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Method has the greatest potential
20 – 30 %Delays normalConnections
“No” delaysTo city centre
DisturbancesTo city centre
Utilisation
20 – 30 %40 – 70 min2 – 4 h9 – 11 hPerformance
300 %50 min3 h10 hMethod
Potential
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Method is the factor of influence that encloses the greatestpotential of improvement.
2 areas of Method:
Hardware: processes, machines, tools, layout, etc.Software: organization, sequence, balancing, etc.
Productivity - Method
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Performance can be referred to:
Worker performances, which depend on: Training levelSkill Motivation
Machines performances, which can be improved by:MaintananceProper use
Productivity - Performance
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It’s the percentage of scheduled time dedicated to value added activities.Utilization embodies:
Technical lossesOrganizational losses
Balancing a manufacturing line can have great influence on its Utilization as losses occur.
Static losses: due to a different work content among workplaces;Dynamic losses: due to time variations, material quality, daily work, etc.
(Planned and effective)
Productivity - Utilization
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Method Performance Utilizationx x
M P Ux x
Influence Factors of Productivity
Efficiency
Productivity
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Between time “O” and time “1” there are cycle time variations, but the same number of workpieces are produced in the same time
efficiency changes, productivity doesn’tBetween time “1” and time “2” cycle times do not change, but more
workpieces are produced in the same time so, efficiency changes as well as productivity (production increases)Comparing time “2” to time “0”, Efficiency turns to be decreased and
Productivity improved. Productivity at time “2” represents the Efficiency that I would have had at time “2” if the cycle times had not been changed.
ExampleExample
Relations between Efficiency and Productivity
Time Pcs. Cycle-time (h/pcs)
availablehours
Efficiency M factor Productivity
zero 9 1 10 90% 100% 90%one 9 0,8 10 72% 125% 90%two 10 0,8 10 80% 125% 100%
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Calculate total productivity increase and factorization
MM: Cycle-time 0.8 0.5………………………..
PP: Performance 0,9 1.05………………………
UU: Utilization 0.6 0.85……………………
TOTAL INCREASE TOTAL INCREASE OF PRODUCTIVITYOF PRODUCTIVITY………………………………………………………………........
Productivity
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Calculation of productivity improvement
Before AfterM: 0,8 0,5 8 : 0,8 = 10 pcs 8 : 0,5 = 16 pcs (+60%)
P: 100 115 10 x 1,0 = 10 pcs 16 x 1,15 = 18,4 pcs (+15%)
U: 60 85 0,6 x 10 = 6 pcs 0,85 x 18,4 = 15,6 pcs (+42%)
Total productivity improvement = 15,6 : 6 = 2,61 = + 161 %(1,60 x 1,15 x 1,42 = 2,61)
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Productivity improvement processes
MethodMethod
- product design
- product range rationalization - production systems- layout- workplace design- systems and procedures- material flow
PerformancePerformance
- skills and training- motivation- work instruction and coaching- target orientation- engineered labor standards
UtilizationUtilizationHuman resources- static balancing- dynamic balancing- qualityEquipment- productive maintenance- change over efficiency
MTMMTM
Process improvement Efficiency Improvement
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Secure (PP x UU)
Create / Buy (MM)
Productivity improvement processes
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Secure (PP x UU)
Create / Buy (MM)
Productivity improvement processes
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Innovation (3:rd level)
Method improvement (2:nd level)
Elimination of waste (1:st level)
Improvement level
Time
Focus on level 2 - method improvement- might lead to level 3 - Innovation
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1° level: Elimination of waste
Low cost and quick to implement.Often based on operators experience.Limited effect on the method.Creates involvement by employees.The ideas often comes from quality circles or
similar activities.
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2nd° level: Method Improvement
Implementation takes some time and requests capital.Often a good relations betweens cost and
effect.Functional solutions (”others has already done
similar improvements”).A new method is built by analyse from base
functions to auxiliary functions.
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3° level: Innovation
Completely new idea or technology.The idea often comes from another business or ”world”.Often demands capital and needs long time to develop and test.Creates a new plat form to continued development.
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1
2
3
45
6
7 Structuring• Objets & modules• Work contents
Classification• BF & AF• IN -> -> OUT
Set Kaizenshiro• Calculate ICT• Kaizenshiro
Seek ideas• Define subject• Brainstorming• Classify & evaluate
Build new method• Inside - out• Critical Path Analysis• Alternative solutions
Implementation• Management system • Follow-up
Results• Operational • Financial
Productivity = MM x P x U
Productivity improvement processMethod Design Concept (MDCMDC)
Wien, 12 November 2007 G. Caragnano - IMD Executive Director 36
MDC – Design new method
Traditional process rationalization
Outside-in Inside-out
New way: focus on value (BF)
BF: Basic Functions; AF: Auxiliary Functions
Workcontent
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MTM for Process Design
Methods-TimesMeasurement (MTM) is a procedurewhich analyzes any manual operation or method into the basic motionsrequired to perform it and assigns to each motion a predetermined time standard, which is determined by the nature of the motion and the conditionsunder which it is made. Thanks to MTM, once the working method is designed, time is determined, for free!
Manual operation
Basic Motions
Influence Factors
Basic Time
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AS IS PROCESS
LINER PALLET
CUT
WELD
PREP
LINE
Example: liner preparation
LINER PALLET
CUTWELDPREP
LINE
TO BE PROCESS
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AS IS 63.6 HM
TO BE 40.1 HM (+59% Productivity)
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PROFITABILITY CALCULATION
Merge cut, welding and preparation to reduce handling of liner
Example: liner preparation
TIME VOL LAB COST PROD.TYAS IS 63,6 120.550 255.567 100%TO BE 40,1 120.550 161.135 159%DELTA -23,5 0- 94.432- 59%LABOR RATE 20 (€/H)TOT INVESTMENT 50.000 (€)PAY BACK TIME 0,5- (YRS)
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MDC – Results
Improvement
Investment
20%
A B C
Kaizenshiro
Innovations
Improvement
Waste elimination
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Secure (PP x UU)
Create / Buy (MM)
Productivity improvement processes
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MDC – Implementation
Target
Time
Cycle time
Reward
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Why monitoring Efficiency ?
To be or not to be
PlanPlan ExecutionExecution• Improvement: ..........................One method One activity
• Process: ..........................One time Distribution of times
• Conditions: ..........................Predeterm. Variable (materials, performance, quality)
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Measuring
Comparing to standards
Discovering problems
Improvementactions
Goals
Active Monitoring to improve Efficiency
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Active Monitoring Scope
MTM_CURR
REST TIME
BALANCING
QUALITY
WORKERPERFORMANCE
REPORTED LOSSES
REWORK LOSSES
COORDINATION COSTSSystem time
Transformation time
Gross Production time
Net Production time
Standard Cost TotStandard Cost OK
Std WkContentBasic WkContent
Efficiency Improvement
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ACTIONS
RESULTS
RESULTS
RESULTS
CAP enhances results
Active Monitoring (CAP) to improve efficiency
Ideas(100-700)
Relevant(50-200)
Justifiable(30-100)
Solutions
Method improvement
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CAP – Orientation to continuous improvement
Goals gradually more difficult to reach have to be set. They have to be achievable in a reasonable time (3-6 months) in order to create motivation and commitment.
02
03
04
X1
X2
X3
X4
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Example of CAP Process
1
2
3+4+5
NReference to
document nr.
Shiftmanager
+Managingdirection
Sche
dulin
gSh
iftm
anag
er
Operatore
Team
Preparation ofthe production
planning
Productionplanning
+Productiontag
Assign productionorders to the team’s spokesman
Critical productionanalysis record
Weekly Efficiencymeeting
Compileproductionreports
Material load + production
Set – up schedulingMaterial availability in department(mag. 19)
Data recording of the previous day production
DBEfficiency
2 times/week Activity MeetingLosses analysisImprovement proposals
Monthly efficiencymeeting
List of autonomous,Corrective + List of requests ofsupport for suggested actions actions
List of actions to be implementedwith the manager’s supervisionand filed with deadline
+Support requests for Suggested actions
List of actions to be implemented withthe manager’s supervision and filed with deadline and advancementstatus
Print previous’week productionreports
Gather and controlproduction reports
START
Print previous’4 weeks productionreports
List of actions to be implementedwith the manager’s supervisionand filed with deadline
+Support requests for Suggested actions
List of actions to be implemented withthe manager’s supervision and filed with deadline and advancementstatus