Every Product Every Cycle in Production

1

Flow Logic

and

Every Product Every Cycle

How to start

2

Where to start with current plant & equipment limitations?

3

The Glenday Sieve

• A tool to help

– Implement Every Product Every Cycle

– Remove waste

4

The Glenday Sieve - first analysis

% Cumulative Sales

% ProductRange

50%

95%

99%

5

The Glenday Sieve - first analysis

Exercise

Data source: $B paint/coatings multinational

6

The Glenday Sieve – second analysis

7

GreenGreen Products

% Cumulative

Sales

% Product Range

50% 6%

• High volume/small number of SKUs• Create a “green stream” for these

products– Enable the green stream to flow

8

The Glenday Sieveand

Value Stream Mapping

What do you map first?

The Greens

9



To make the “greens” flow

10



which willas a consequence

reduce non-value added waste

11

YellowYellow Products

% Cumulative Sales

% Product Range

50% 6%

95% 50%

Work to closely to align with Green products– Piggyback with greens where

• Little change-over impact• Differentiation happens off-line

12

Yellows

• Work on reasons stopping yellows going into green stream

• E.g.– Changeovers– Batch sizes

13

Green stream

• Start with 6% range in fixed cycles• Increase capacity (white space) through EOR• Work on yellows• Reduce barriers to being in green stream• Move yellows into white space• 50% product range BUT 95% volume in green

stream

14

Yellow Yellow Products

% Cumulative Sales

% Product Range

50% 6%

95% 50%

– Utilize rapid improvement methodology to remove barriers to flow

e.g.• Grade change time, etc.• Improve line performance

15

BlueBlue Products

% Cumulative Sales

% Product Range

50% 6%

95% 50%

99%

• Opportunity for product or packaging harmonization

• Product, materials and/or processing include non-value adding complexity

16

Blue SKU’s - removing non-value adding complexity

– Back labels

17

Blue SKU’s - removing non-value adding complexity

• Facial Tissue mill• Totally chaotic scheduling environment• Clear bottleneck at the end of the production

process in making bundle packs

Blue opportunity – Printed Shrink Film

18

EXAMPLE

Results:• Removed Carton Orienter• One week production cycle (now EPEW)• Transformed a “chaotic” environment to a

smooth and “calm” one• Focus on Multi-pack (Cyclone) bottleneck

– Output rates improved 22% two years in a row

19

Red Products

% Cumulative

Sales

% Product Range

50% 6%95% 50%99% 70%

1% of Sales30% of the SKUs

20

More “institutional” waste

21

Exercise

Impact of central limit theory

On

Sales predictability

22

Facial Tissue SalesFORECASTS PER WEEK

Code 28200 Code 28201 Code 28100 Code 28112 Code 32905200 Ct Case 184 Assorted 100 Ct Case AV 112 Ct Case Walgreens 100 Ct

16,133 9320 5949 2038 120

Actual Demand Actual Demand Actual Demand Actual Demand Actual DemandWk of 5/30 15,386 8936 8743 4218 15

6-Jun 14,355 8413 4548 1874 1513-Jun 17,695 9564 6572 3153 23320-Jun 14,536 9242 5337 1011 6627-Jun 14,513 8048 5363 1065 87

4-Jul 14,668 8246 5581 2002 11711-Jul 16,931 8948 6043 1280 26018-Jul 16,632 9699 5367 1781 6625-Jul 17,777 10294 5200 1327 277

Average 15,833 9043 5862 1968 126

Green Code

RedCode

23

Average Sales Forecast Accuracy

ProductAverage Weekly Sales

Weekly Forecast

% Forecast Accuracy

28200 15,833 16,13328201 9,043 9,32028100 5,862 5,94928112 1,968 2,03832905 126 120

24

Sales Forecast Accuracy at Weekly LevelWEEKLY FORECAST ACCURACY DATA

Week 1 2 3 4 5 6 7 8 9 Forecast28200 Sales 15,386 14,355 17,695 14,536 14,513 14,668 16,931 16,632 17,777 16,133

F/C Acc. 95% 89% 110% 90% 90% 91% 105% 103% 110%

28201 Sales 8936 8413 9564 9242 8048 8246 8949 9699 10294 9320F/C Acc. 96% 90% 103% 99% 86% 88% 96% 104% 110%

28100 Sales 8743 4548 6572 5337 5363 5581 6043 5367 5200 5949F/C Acc. 147% 76% 110% 90% 90% 94% 102% 90% 87%

28112 Sales 4218 1874 3153 1011 1065 2002 1280 1781 1327 2038F/C Acc. 207% 92% 155% 50% 52% 98% 63% 87% 65%

32905 Sales 15 15 233 66 87 117 260 66 277 120F/C Acc. 13% 13% 194% 55% 73% 98% 217% 55% 231%

Actual Sales

25

Sales Forecast Accuracy at a Weekly Level

Lowest % Highest %28200 to

28201 to

28100 to

28112 to

32905 to

26

Sales forecast accuracy at a weekly level

0%

50%

100%

150%

200%

250%

1 2 3 4 5 6 7 8 9

2820028201281002811232905

27

What about Forecasting and Sales Variability?

Generally bigger sellers have less variability

therefore greater predictability

28

Rationalisation is NOT the only option!

It is AN option

however

there are many solutions

Red SKU’s

29

Buffer tank utilization learning

Pre lean/RFS: Schedule adjustments would have occurred at three points(creating that “vicious cycle”)

Post lean/RFS: No schedule adjustments and normal variability is handled through the buffer tank

0

50

100

150

200

250

2/12

/200

6

2/19

/200

6

2/26

/200

6

3/5/20

06

3/12

/200

6

3/19

/200

6

3/26

/200

6

4/2/20

06

4/9/20

06

4/16

/200

6

4/23

/200

6

4/30

/200

6

5/7/20

06

5/14

/200

6

5/21

/200

6

5/28

/200

6

6/4/20

06

Avg of min su Avg of max su Sum of Inv SU

GPS TCR12SR FAMILY (All) LOCCODE (All)

SUN_DT

Data

30

Remove the “window” in to the Buffer Tank…

11/27 12/4 12/11 12/18 12/25 1/1 1/8 1/15STING8RR OK OK OK OK OK OK OK OK

STING1CAS HIGH HIGH OK OK OK OK OK HIGH

STING3RR OK OK OK OK OK OK OK OK

STING12RR OK OK OK OK OK OK OK OKSTING15RR HIGH HIGH HIGH OK OK OK OK OK

STING1MR OK OK OK OK HIGH HIGH OK OK

STING1RR OK LOW OK OK OK OK OK OK

STING24RR HIGH HIGH HIGH HIGH HIGH HIGH HIGH HIGH

STING2CAS OK OK OK OK OK OK OK OK

STING2MR HIGH HIGH HIGH HIGH OK OK OK OKSTING6RR OK OK OK OK OK OK OK OK

OK OK OK OK OK OK OK OK

31

Impact on peopleG’day Ian

I am sure "easy" was a word that sprang to mind when we firststarted fixed cycles...there was a general view that I was insanebut having said that the crew would assassinate anyone whonow tried to take their fixed cycle away...

I'm probably a certifiable "early adopter" and the things youare proposing seem to make so much sense.

best regards

Marty

32

Impact on peopleHi Ian

Our Green Flow project started with four products that made up around 30%of our total capacity here in Denmark. To test Green Flow’s proof-of-conceptwe ran three cycles of five weeks per cycle. After fifteen weeks, the project’sfinal fermentation finished followed by the standard purification, granulationor liquid formation, QC analysis and shipping procedures.

The project has been a big success. We have reduced our lead time by 50%for the majority of batches. Even the few batches that required some reworkinghave had a 33% reduced lead time. It has been possible to hold the vast majorityof the agreed start/stop times throughout the supply chain. And lastly almosteveryone, from operators to top management, thinks the Green Flow principleis a far better way of production than what we were doing before. We expect thatGreen Flow will no longer be considered a project but an established way of production.

Best regards,Herman HerzLean Facilitator

33

Impact on peopleFrom: Graham, Jeff Sent: Monday, February 15, 2007 10:08 AMTo: Sather, RickCc: Gardhouse, BrianSubject: RE: Huntsville Lean-RFS

Hi Rick

RFS has been a tremendous success for the Huntsville assets. Since the RFS start-upin 2006 productivity has increase from under 15,000 cph to over 18,000 cph in January 2007.The steady upward trend in rate of operation is a testament of the power of a frequent, stable, predictable repeating schedule. I am a believer and would fight any efforts to go back to the prior scheduling chaos!

We’ve been digging into the productivity improvement “toolbox” using standard techniques fitted into the RFS structure. SMED, centerlining, TPM and equipment improvements are all used to improve rates of operation. The approach has been practical with operations and technical team members’ involvement. In particular, the line mechanics and electrical Support are fully engaged making improvements regularly. Efforts have concentrated on eliminating “rocks”, reducing equipment variables and stabilizing the process.

34

A major shift in thinking is the idea of “making the cycle” versus daily rates of operation. Instead of measuring rates of operation, we measure where we are in the cycle – ahead or behind by hours. Also when extra hangs are made, it provides all team members a measurable contribution to the business their efforts made especially when there are customer service issues.

As for challenges, RFS continues to show us weaknesses in equipment, procedures and people. Example: the facial tissue grade 280’s continues to be a challenge. Given it is run every week; we know operating issues are independent of operating team, materials, current procedures and equipment set-up. Plans have been developed to methodically address observable barriers to flow to improve rates of operation. Although 280’s rates of operation are stable and predictable, they are poor compared to other grades.

As I stated at the start, the Multifolder rates of operation continue a steady upward positive trend in rate of operation. The stable, predictable repeating schedule contributes to problem solving and solution implementation. I am a RFS believer.

Jeff

35

Rocks or barriers to flow

• Visible • Hourly • Operator led• Focussed on achieving plan• Problem identification

36

Downtime– tends to get attention & resources

0

100

200

300

400

500

600

1 2 3 4 5 6 7 8 9 10 11 12

std outputactual output

37

“Normal” production variability

430440450460470480490500510520530

1 2 3 4 5 6 7 8 9 10 11 12


Average output = 501/hr

38

“Normal” production variability

430440450460470480490500510520530

1 2 3 4 5 6 7 8 9 10 11 12


Average output = 501/hr

• 501/hr average = seen as “good” shift

•“good” hours balance “bad” hours

• little or no problem solving focus

• repeat issues not understood or addressed

• operators get little or no resources to help resolve their repeat issues

3939

RockbustingRockbusting ProcessProcessOperator ResponsibilitiesOperator Responsibilities

At the end of each hour, enter results on the“Line 31 hourly Efficiency Board”

– Green Bar if over the standard– Red Bar if under the standard

4040

4141

Contact ProcessContact Process

Operator

Make necessary contacts if the hourly casecount goes below the Standard LineEfficiency.

4242


Hour 1: Contacts the Line Supervisor

Hour 2: Contacts Shift/Area Manager

4343


Hour 3: Contacts the Manufacturing Manager.

Hour 4: Contacts the Plant Manager.

44

Rockbusting

• Focus on all “bad” hours (not consecutive hours or single reoccurring issue)

• Operator led

• Visible process that triggers help (NOT a problem solving process)

45

“ROCK” Busting - Sustaining Action: Follow-up Process for Rock Identification & Elimination

No Team Action Needed

Decision

Point

Lean Steering Team decides the need for

Rock Busting in a certain area

Gather information

from all shifts & perform sieve

analysis

Potential Rocks documented on

Supervisors Daily Shift

notes (email)Supervisor flags

the need for Rock Busting Team to

meet•Rock Busting Team Members

OperatorSupervisor

Maintenance SupervisorQuality Assurance Specialist

EngineeringSanitation

Maintenance Techs

Report Findings and Corrective Actions to

Distribution with specific timeline &

person(s) responsible

Implement Corrective Actions and continue

to monitor hourly results

Team Gathers Data & Executes Problem

Solving Process (Brainstorming, etc.)

Team involves any other necessary resources (incl.

Corporate)

46

Schedule BreaksA tracking mechanism

47

Schedule BreaksExample of tracking breaks

Hard Rollover

8

Business / Other

36

Materials76

Customer92

Site/Asset113

0

20

40

60

80

100

120

2006 TOTAL FAMILY CARE RfS Schedule Breaks

Hard Rollover Business/Other Materials Customer Site/Asset

unt of Reason Description

Reason Description

48

Schedule BreaksConclusions

• Schedule Break Log data is critical to understanding root cause, and standardization of data is a must

• Three major barriers to flow:

– Site/Asset (36%) – Customer (28%)– Materials (23%)

2006 RfS Breaks - Internal or External* (%)Customer

28%

Kimberly-Clark72%

49

Schedule BreaksDeeper dive – Site/Asset breaks

Site/Asset reason code breakdown (2006 totals)

0

5

10

15

20

25

30

White SpacePlan

Rates ProjectConflict

MachineFailure

HumanResources

Runout

50

Schedule BreaksDeeper dive

- Materials Breaks

51

From Problem-hiding to Problem-solving

• Focus on meeting the plan NOT line efficiencies

• Identification of rocks & barriers to flow

• Problem solving activity separate to “get the line running NOW!”

52

Changing the logic from

Batch to Flow

Overall Summary

53

Toyota Production System

Jidoka

-Andon

-Poka-Yoke

-Visual control

-5S, etc.

Just-in-time

-continuous Flow

-Takt time

-Pull system

Customer service

Continuous Improvement

AndElimination of MUDA (waste)

Lead TimeCostQuality

Stability & Standardized Work

Levelled production (heijunka)

54

Production Levelling or Heijunka

= Foundation of Lean

Therefore essential to beinga truly Lean Enterprise

55

• Final step in the process, not how Toyota started

• What you see is different to how it was achieved

• You now know the “secret” = EVERY PRODUCT EVERY CYCLE

56

New Paradigm Supply Chain Logic

• Every Product Every Cycle is the key and required to support production leveling

• Use the Glenday Sieve and pattern production based on SKU categories

• Rigid cycle (start time and sequence) creates Economies of Repetition

• Utilize “buffer tanks” to manage variability and exceptions– instead of always re-planning to a target– Flexible quantity when limits are broken

57

Every product Every Cycle

• A rigid disciplined PUSH process

• Leads to stability and standardisation as a consequence

• Invest improvements in faster cycles

58

Progression over timeEstablish an EPEC pattern, leverage Economies of Repetition (EOR) & create stability. A push flow

Fixed sequence, fixed volume

Fixed sequence, unfixed volume

Unfixed sequence, unfixed volume

Respond closer to demand, continue to rely on EOR.Sustain flow with some pull

Produce to demand.True flow and pull

At this point, you will have a true Consumer Driven Supply Network

Increasin

g capability, responsiven

ess, lower cost an

d cash

Faster fixed sequence, fixed volume Maximise impact of EOR &stability. Increase rate of flow.

Unfixed sequence, fixed volumeBreak reliance on EPEC &EOR. Pull using small fixed volumes.

59

Getting started

What – specifically – are yougoing to do as a result of this forum

next week?

Write it down.

60

Levelledproduction

61

Levelledproduction

Every ProductEvery Cycle

62

Levelledproduction


The GlendaySieve

63

Levelledproduction

Economies of Repetition


The GlendaySieve

64

Levelledproduction



The GlendaySieve

65

Levelledproduction



The GlendaySieve

Education

Every Product Every Cycle in Production