08/11/2013

Achieving Lean Manufacturing through Lean Design

print | close

Achieving Lean Manufacturing through Lean Design

Ron Guiliani and Tim Bolbach, SSOE Group
Wed, 2013-07-03 10:19

Simulation modeling and analysis provide solutions that decrease waste, increase efficiency and optimize
flow.
To remain competitive, manufacturers must utilize "lean manufacturing" operating with maximum
productivity and process efficiency, while generating quality products. Although establishing processes
that support the lean manufacturing philosophy can be a challenge, finding improvements to those
processes, with a reasonable return on the investment, is often the greater challenge.
Manufacturers should utilize methods such as process simulation modeling, achieving the manufacturing
edge by using experienced process engineers who apply simulation techniques. Preserving value with less
work can be accomplished through "lean" methods of design and problem solving.

Preserving Value with Less Work

Using a "lean design" approach, process simulation experts can analyze and suggest improvements much
more quickly than someone using traditional techniques.
Utilizing process simulation (an analytical approach to modeling industrial and manufacturing processes),
the engineer scrutinizes the tasks of the process flow separately, concurrently or in conjunction with
other processes and procedures to understand the data and to determine problem resolution and better
practices.
Analysis of materials, operations, handling and time factors can show the bottlenecks. Adjustments can
then be made to the model, at which time the effect on the entire process is observed often with
surprising results.

Reducing Work in Process Inventory

Identifying and resolving the correct root cause of problems with distribution techniques, which have
direct impact on Work in Process (WIP) inventorylevels, will reduce those levels.
Process modeling techniques, used with other techniques like root cause analysis, can identify and resolve
inventory level issues.
For example, a manufacturer of original automotive equipment and after-market parts was experiencing
increasing expense due to anomalies in their WIP process.
Consultants using traditional analysis of the operations recommended technically advantageous, but
extensive, renovations to the plant. That approach yielded an ROI of more than two years, which was far
www.industryweek.com/print/lean-six-sigma/achieving-lean-manufacturing-through-lean-design

1/3

08/11/2013

Achieving Lean Manufacturing through Lean Design

longer than the manufacturer was willing to accept.

However, when other consultants utilized process simulation to perform the same analysis, the
manufacturing bottlenecks were easily located.
The consultants' recommendation was simply to relocate the loading docks to points adjacent to where
materials are used, without having to move major equipment.
The solution eliminated so much material handling that worker productivity increased more than 20% and
yielded an ROI of less than one year.

Enhancing the Production Line Efficiency

Process modeling can quickly and accurately determine the right manufacturing productivity
enhancements to a product line, which will cost-effectively reduce errors and waste, and improve quality.
For example, an automotive plant in Ohio made 122 versions of rear wheel transmissions. Final assembly
lines were fed sub-assemblies from various other sub-assembly lines.
However, after installing two new final assembly lines, the plant was failing to achieve production numbers,
operating at 6070% efficiency and experiencing a 27% rejection rate.
Specifications, drawings, process diagrams and standard operating procedures were studied. The analyst
discovered the most impactful inefficiency to be that no completed work was transported until all stations
were complete.
The system was reprogrammed to transport work upon completion, and a new program was created at each
station, removing the transport time from the cycle time.
Production increased from 700 to 1,000 per shift per line, at 83% of utility.
The next round of analysis through process modeling and root cause analysis revealed bottlenecks at the
line-to-line transfer points. Removing the bottlenecks increased productivity to 97%.
Getting the last 3%, to achieve 100% utility at 1,200 per shift per line, came with considerable work to
enhance the "intelligence" of the system, but was accomplished through experience, teamwork, creative
solutions and innovative spirit.
"Perfect shifts" were the result, with final assembly lines meeting 100% of the production schedule at full
100% utility, and with the additional achievement of complete flexibility and increased quality control.
Any of the 122 models could be built on the line at the same time with automated part selection and
placement monitoring. Because the final assembly lines were so productive, the sub-assembly lines could
not keep up, so the same analytical techniques and successes were applied to those lines as well.
The rejection rate dropped to 0.5% or less, for years following, making the plant the most productive in the
USA. The ROI was measured in weeks, not years, with an estimated increase in the manufacturer's revenue
of $192 million per year.

Simplifying Worker Tasks to Increase Production

www.industryweek.com/print/lean-six-sigma/achieving-lean-manufacturing-through-lean-design

2/3

08/11/2013

Achieving Lean Manufacturing through Lean Design

Simplifying worker tasks does not require relocating major equipment. In fact, doing so often creates a
domino effect, with modified foundations or pits, significant structural reconstruction or additions to a
building. It also pushes the ROI well beyond comfortable timetables.
However, simulation modeling can lead to increased production and significantly shortened ROI. For
example, an automotive manufacturing plant that produced 200 vehicles per day using two shifts wanted
to increase production without costly reconstruction.
A 300-vehicle-per-day simulation, created by FlexSim Simulation Software, showed that it could be
achieved, with one shift, creating an immediate cost savings.
Simplifying worker tasks proved to be the most effective method to increase productivity. Parts required
by workers were placed in a basket that travelled with each vehicle along the line. Each workstation was
equipped with a verification screen that allowed each worker to check off the task performed.
In an innovative step, telescoping stations were added, allowing workers to raise or lower a vehicle to allow
easier access to particular areas. Basic ergonomic solutions like these significantly decreased the time
required to install each part.

Simulation Skill is Achieved by Experience

While process simulation has its historic roots in the chemical industry, the basic theory describing each
step mathematically and then making adjustments to increase productivity is applicable to nearly any
manufacturing process.
Like any tool, the experience of the professional who has used it makes all the difference. Achieving the
highest possible efficiency within a computer model is relatively easy; assessing changes to a
manufacturing line while keeping cost, feasibility and ROI goals in line is entirely another exercise. An
experienced engineer's talent lies in this practical, cost-effective approach to process design and analysis.
The advantage of lean manufacturing by lean design is clear various changes and options to a
manufacturing process can be examined virtually, without the tremendous expenditure of reconfiguring
the manufacturing line or purchasing new equipment. In the hands of a talented engineer, these findings
translate into cost-effective improvements with maximum impact on productivity.
The use of process simulation modeling software warrants lean design. Lean design leads to lean
manufacturing. Lean manufacturing impacts the bottom line and propels manufacturers to leader positions
in their industry.
Authors are with SSOE Group (www.ssoe.com), an international engineering, procurement and
construction management firm. With 23 years' experience, Ron Guiliani, PE, PMP, is a senior vice
president, specializing in Industrial Manufacturing and R&D projects. Tim Bolbach, PE, is a master
engineer with 34 years' experience and responsibility for leading teams of highly skilled engineers in the
design of state-of-the-art automation and instrumentation systems for process and machine control.
Source URL: http://www.industryweek.com/lean-six-sigma/achieving-lean-manufacturing-throughlean-design

www.industryweek.com/print/lean-six-sigma/achieving-lean-manufacturing-through-lean-design

3/3