CSI approach to your Production Management

CSI approach to your Production Management

Director Andrius Gudaitis 2013.05.171

Nova days key success factor in production and business environment is a correct Information

Flow Management.

Almost all companies work with constantly grown SKU’s and raw materials numbers, that leads to working with smaller and smaller batches, shorter and shorter lead times and higher and higher quality standards which brings high complexity in effective production flow management.

To manage and visualize Information Flow became necessary condition for effective production, business management or any kind of improvements – LEAN, TOC, Six Sigma or TLS.

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Meaning of Proginta’s service is to arrange company Information Flow in such way that Company Management or Lean, TOC, Six Sigma consultants could easily recognize where to put their attention to increase efficiency of

production flow and reliability of client service.

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Proginta inc.

— Proginta inc. combine different competences, software development and ERP deployment with deep international consultant expertise based on supply chain and production management using latest TOC and LEAN tools and methodology.

— Proginta inc. provide Information Flow management services in Ukraine and Europe from 2008. Services included classic consulting, IT solutions, daily work with data flow and Reports. The goal of our service is to help a client to improve their financial result.

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We would like to repeat

Proginta inc. strive to present analytical information in a way that it is easily comprehended even without consultant’s help.

Thus, company management gets a clear understanding where to focus their efforts for a much greater improvement in current

results.

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Methods we have competencies in:

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Proginta are focusing on three main flows or processes

Information flow

Money flow

Products and services flow

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Proginta offer a long term service of:

—Systemic analysis of the entire company

or

—Localized analysis of client’s choice according to Lean and/or TOC as a pilot project.

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Systemic analysis

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Quantum cryptography vs. Business

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Production efficiency depends on the efficiency of every link in production chain: supply, production departments and logistics.

Problems that disrupt production plan are generally known and taken care off as they arise.

This “fire-fighting” method does not provide systemic improvement, because it fights symptoms and not the cause of the problems.

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Systemic analysis must specify production disturbance causes and their ratings.

This allows to determine causes that affect production plan the most weekly and monthly.

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Defective RMOrder sequence changesIssues with working toolsQuality defectsEquipment failureRaw materials/components supply

Raw materials/components supply

26%

Equipment failure12%

Quality defects16%

Issues with working tools21%

Order sequence changes

7%

Defective RM19%

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Production process

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Systemic analysis measures:

— Reliability of material supply;— Planned production starts;— Timely transfers between departments;— Timely production task completions;— Timely order dispatches;— Etc.

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Production process

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ouseMeasures in selected points:

— DDP%,— OS,— TVD.

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Rating’s purpose:

DDP (Due Date Performance) % indicates reliability of a link.

If a link does not have buffer or excess production capacity, then the following link receives a lag.

Common causes:— Untimely material supply;— No material supply;— Previous link changed production tasks;— Incorrectly planned production scope;— Etc.

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Rating’s purpose:

OS – Over Stock

Common causes:— Overprotection;— Production oriented efficiency;— Preceding departments starts tasks too early;— Incorrectly planned queue in preceding departments;— Large production batches policy;— Etc.

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Rating’s purpose:

TVD (throughput value days)

This rating evaluates financial lag of delays.

It allows to analysis financial impact of delays and to allocate TVD points to the source of delay.

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Required data:

DDP%

Initial data – detailed production plan:— Production start time, end time and planned

amount;— Equipment preparation time;— Single element processing cycle;— Equipment standby time.

Operations data:— Reasons for changing production plan;— Amount produced between X and Y hours;— Accumulated lag.

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Data required for planning:

— Number of resources in a department;

— Resources’ work schedule;

— Shifts’ work schedule.

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Data required for planning:

— Material supply schedule

Evaluation of material supply reliability (ordered vs. arrived)

Material arrival terms (lead time, on request)

Procurement plan forming

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,etc.

Your ERP system

Data (or VSM) required for planning:

— Production route.

— System that plans according to production routes.

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Data entry forms - Production routing (operations sequence and resources) description

If current systems cannot store required data…

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Data entry forms – Bills of material and Product assembly tree


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Data entry forms – Job sequence management with raw control


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Data entry forms – Job execution management with barcode or custom instruments


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Data entry forms – Job sequence management per resource usage


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Acquiring actual dataSupply Production Warehouse

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Acquiring actual data

Procurement data:

1) Ordered materials: item number, quantity, planned delivery time;2) Materials’ total received quantity;3) Factors that cause delivery lag;4) Reasons for changing delivery time before delivery term.

First two acquired from business management system, others – from analysis.

Supply Production Warehouse

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Production data:

1) Does the task have all required materials?2) Which tasks executed according to plan?3) What are the reasons for changing production plan?4) What have caused production lag?5) How tasks are queued?6) What production facilities are required?

Evaluate how much data is in BMS (SAP, Oracle & etc) and how much to give to external system.


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To collect information that is transmitted between work centers/departments required :

1) What was the plan?2) What was produced at a specified time and in

what quantities?3) What have caused lags?4) How much spoilage was produced? What was

it?5) What was material spoilage?

Is it possible to indicate in IT system, that department has excess resources or buffer?


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INSTRUMENTS:

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Acquiring actual dataSupply Production Warehouse

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Bottleneck operations data:

1) How production is queued?2) What is equipment's preparation time?3) What is the time for single element cycle?4) What causes lags?5) How much spoilage produced? What was it?6) What was material spoilage?7) Etc.

Data sources include automated data collection systems (Lean2S) and IP video cameras monitoring operations or employees’ behavior.






Orders data:

1) What is order dispatch plan?2) How many orders dispatched according to plan?3) What have caused lags?4) Reasons for changing dispatch time before dispatch term.

First two acquired from business management system, others – from analysis.


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Our aim to identify what causes plan changes and lags, order completion lags, production starts too early or produce to much.

It enables to isolate recurring causes that adversely affect the results.

It also enables systematic application of Kaizen or POOGI improvement mechanism.

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Automated data collection

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Simple & Smartsolution

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The importance of data transmission reliability

While researching production efficiency solutions we discovered that data reliability is very important:

Given example demonstrates data distortion. First chart depicts actual work cycle. Second charts depicts situation when there were no connection to database between minutes 5 and 10:— System did not record 7:00–9:00 downtime.— This distributed and hid the 5:00–6:00 spike.— Spike that occurred right before the downtime compensated the latter. This would not be visible in summarized data and would not draw attention to such event.

Summarizing distorts data.

People who make decisions divide into camps: those

who agree with the data and those who do not.

People who do not agree with the data do not participate in

decision realization.

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Protection against data loss

Considering possible data loss, we have implemented solutions that minimize the risks to an absolute minimum:

1) Data receiver preserves data of up to 10 hours of work while database is down.

2) Data receiver preserves collected data indefinitely while database is down.

3) Software informs personnel via e-mail or SMS when communication is down, allowing quick troubleshooting and data preservation.

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Data integrity

Companies usually use various types of equipment from different vendors.

Consequences of processing data by different software:

1) Different software presents the results differently.

2) Users must learn what those results mean and what to look at.

3) There is no way to analyze equipment interdependences.

4) Employees who move to another department may have to learn new analytical tools that may considerably differ from the previous ones.

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Flexibility of our equipmentBecause we are the developers, we are able to adapt our solution to a specific project.

Data collection unit is constructed using industrial controller (PLC) that enables to:— Read data from any type of sensor.— Adapt data collection algorithms to specific cases.— Control external equipment.— Accumulate data internally when communications are down.

Data transferred to PC using:— Direct connection via COM port.— Industrial grade wireless connection.

Data collection from external systems:— We implemented means to exchange data with external systems.— As the software developer, we are able to adapt data exchange between any hardware and software.— It is possible to export collected data to Your ERP system.

Duomenų mainai su išorinėm sistemom

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Objectives

— Generating analytical reports. The purpose of the analytical reports is to identify negative factors using historical data.

— Identifying negative factors in real-time. The purpose of real-time analysis to inform personnel about identified negative factors ASAP.

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Analytical reports

Measurements and Δ change:EA – Equipment AvailabilityEEP – Equipment Efficiency PerformanceEQP – Equipment Quality PerformanceOEE – Overall Equipment EfficiencyMachine operation and tuning

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EA

EA ∆

Spoilage analysis

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Visualizing equipment operation

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Real-time analysis:

— Report workflow status every two hours.

— Notification about unplanned downtime that is not not resolved in predefined time.

— Notification about lag exceeding predefined time interval. (For example through text message)

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Our proposal -

to start from an

analysis stage:

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Analysis achievements:How and when does information flow now?

Identify what causes information lags.

Assess what current information we can use.

Identify current system’s resources that we can use for analytics.

Determine external IT tools required for systemic analysis.

Develop a project to fill information gaps in the current system.

Define responsibilities for entering information.

Develop a project scope and estimate budget for systemic analysis data collection and processing.

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Andrius GudaitisPhone +370 37 30 08 12

Mobile +370 699 9 26 59

E-mail [email protected]

Website www.lean2s.eu

www.facebook.com/proginta

Darius RadkevičiusPartner

Mobile +370 698 4 10 27

E-mail [email protected]

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Proginta was created to be your business personal CSI (Corporate System Investigator)!

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