ISCI 2015 Successful Lean Project Management

Successful Lean Project Management

using Simulation

Brian HarringtonMTN-SIM, LLC

SIMUL8 Corporation | SIMUL8.com | [email protected]

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About the Presenter

Brian Harrington is a Six Sigma Black Belt with 20 years operations research and simulation experience at Ford Motor Company (Dearborn, Michigan, USA). He designs and implements manufacturing process improvements which incorporate many conflicting objectives such as robust, flexible, and Lean systems.

Now running his own discrete event simulation specialists firm MTN-SIM LLC, he continues to deliver high quality complex models for a wide range of manufacturing, healthcare, and business process improvements. He also acts as a technical ambassador for SIMUL8 Corporation assisting in teaching, mentoring, marketing, and consulting projects.


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MTN-SIM, LLCWhitefish, Montana, USA

ISCI 201512 ½ hours apart and 65°

different!


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Housekeeping

1. Audio

2. Q and A


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Project Management using Simulation

• The facts about most projects• Factors to consider when managing a project

• What’s still important even if you’re “Lean”

• Creating trade-offs and balancing

MoneyTi

me

Quality


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The Facts…IBM Institute for Business Value Study

(48 countries, 1400 samples)

60% of projects fail to meet their objective44% fall short on at least one of their Cost, Quality, Time objectives15% miss all of their objectives or are stopped by management20% Highly successful (“Change Architects”)35% Moderately successful45% Below average successful

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1 Article: “Making Change Work” IBM 2010 Sample size 1,500 practitioners worldwide

2 Article: “Making change work . . . while the work keeps changing” IBM 2014Sample size 1,380 practitioners worldwideBy Hans-Henrik Jorgensen, Oliver Bruehl and Neele Franke 2014

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Cost, Quality, and TimeSmall or Large, Projects…

Need to be on Budget!On Time!

And Strive for Continuous Improvement of Quality!

Project ManagementHow does Lean Manufacturing

concepts affect the stool?


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Enterprise Success Equates to…

Shorter Development Time Beating your Competition to Market

Delivering Quality Lean… with knowledge!

The pressure is on Project Management!


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But… we are a Lean Company!

What does it mean to you? What does it mean to your management?

How does it affect your company?


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Lean Manufacturing Def’n

Something that the customer is willing to pay for Added value to the customer Piece to piece part flow Reduction of waste Reduction of defects Uses pull systems (Kanban) Value Stream Mapping Toyota Production System …


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Lean within Automotive

Plant Reductions… but volume up

Increased Complexity o Several different vehicle-types running-down the same lineo Tool Reuse

Standardizationo Process & Toolso Sub-Systems & Parts

Trained work-force


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Include C,Q,T Metrics into your Simulation


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Simulation metrics

• Throughput (JPH)– Changeovers– Batch Builds

• Number of Repairs– Repair rate

• Number of Scrapped Units– Scrap rate

• Cost– Number of Carriers– Number of Pallets– Number of Tugs & Racks– Number of Robots


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Cost

Cost Avoidance- Biggest bang for your buck!• Comparing simulation scenarios• Equipment Costs

Replication • Can you replicate these actions elsewhere?

Additional Cost Measures•Cost per unit•Material Costs•Scrap Costs•Resource & Labor Costs

Designing your Lean System

Standardization

Visual Management


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Costs may increase as you become Lean!

Training workforce Problem elimination Improving quality

Reduction of inventory Reduction of workforce

Getting more out of your team!


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Quality

• Equipment

• Product Design

• Method/Process

• Tests• Repairs

Where to place quality equipment within your facility, and how much is necessary?


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Quality Example

Strategically placing a vision detection system to analysis weld integrity and

random imperfections.

Reduces scrapReduces destructive testing

Reduces heavy & light repairs

Prevent Recurrence!


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Quality within a Bodyshop

Where to place quality equipment within your facility, and how much is necessary?


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Time

What Discrete Event Simulation does bestThe model is an animated database of events taking place at discrete times; producing realistic behavior and results.

Predicts the facilities capability (Parts per Hour) Provides insight into system performance (Wait, Blocked)

Optimize operating patterns (Shifts, Planned DT)Predicts long-term behavior (1 yr. of production)

Includes outliers (Catastrophic delays)


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We have the Time

Cycle TimesChangeover TimeBreakdown TimeShift PatternsConveyor SpeedsResource TimesTravel MatrixDwell TimesShelve Life TimeDelaysConditional TimeLoad TimeUnload TimeSimulation TimeWarm-up Time… The list goes on

Increased Efficiency & Line Balancing


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Keep your eye on the ballSimulation models can…

Address all three areas of concern

Justify trade-offs within your development plan

Identify interrelationships between key input factors

Provide the muscle to keep your project on target!

Q TC

Q TC

QTC


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“The Goal”

20 years ago… As a member of the Ford College Graduate Program “The Goal” was a one of three books given out to all new engineers.

Protective Capacity and Non-Value Added is a term developed/used by Dr. Eli Goldratt, author of “The Goal”.

“Know the value of your Non-Value Added!”http://www.simul8.com/blog/know-the-value-of-non-value-added/

http://www.simul8.com/blog/know-the-value-of-non-value-added/


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Non-Added Value

Activities that don’t contribute to the product or process; considered waste and can be eliminated from the process.

What is in the process that is deemed as Non-Value Added?


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Buffers & Conveyors

Area of Concern

Become labeled as “Non Value Added”They become labeled as waste

They become a “bad” word


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Protective Capacity

• Extra capacity strategically placed around bottlenecks and constraints

• Protective Capacity resides in:

Buffers Over-speed

Backup strategies Parallel Lines


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So you are a Lean Company?

Why are there so many parts on the shop floor?

You might have a lean configuration… but it’s not working!

Successfully implementing Lean Manufacturing requires an extensive layered discipline change throughout the organization.

60% of projects fail to meet their objective!


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Buffers & Over-Speed

• Might not be as “Bad” as you think!

• Non Value Added; But essential Inspection Stations Decoupling

• Strategically located, right sized, protective capacity is effective! Can be low cost solution Can be optimized to be as “Lean” as your company can

manage


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Successful Approach to Becoming Lean

Lean Manufacturing is much more than just addressing so called “non-value added buffers”!

There are several other important factors within a true lean system from: standardization, reliability, trained work-force, reduction of defects, the list goes on.

Simulation can provide great data-backed insight into implementing suggested lean changes!


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Simulation addresses Lean Concepts

Visualize ProcessA picture is worth a 1000 words; an animation is worth a 1000 pictures!

Focus on Process FlowCompletely covered & beyond!

Strive to Limit “Work in Progress”Apply TOC Concepts!

Continuous ImprovementSimulation Experimentation & “What If” Analysis


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Balanced Project Management

Project Managers must keep the project moving forward

How?

Corporate Strategy

1.Data-backed Decisions

2.“Simulation Milestones” within your strategic timeline

3.“Simulation Sign-Offs”

4.Trained workforce

5.Know your “Protective Capacity”

Simulation studies must be sized properly to deliver Results at Key

Milestones!


Questions?



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Questions?

If you have any questions around this topic, please email: [email protected]

Continue the discussion on the SIMUL8 Users Group– LinkedIn Group


Leadership & Management

ISCI 2015 Successful Lean Project Management