Know the value of non value added

Know the Value of your Non-Value Added!

Lean Manufacturing

By: Brian Harrington

SIMUL8 Corporation | SIMUL8.com | [email protected]

About the Presenter

Brian Harrington is a Six Sigma Black Belt with 20 years operations research and simulation experience at Ford Motor Company. 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.


Non-Value Added

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

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 is a term developed by Dr. Eli Goldratt, author of The Goal.

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


Lean Manufacturing

• What does it mean to you?

• What does it mean to your management?

• How does it affect your company?


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


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?


Buffers & Conveyors

• Become labeled as “Non Value Added”

• They become labeled as waste

• They become a “bad” word


Protective Capacity

• Extra capacity strategically placed around bottlenecks and constraints

• Protective Capacity resides in:– Buffers– Over-speed– Backup strategies– Parallel Lines


Synchronous Work Flow

• Piece to piece part flow

• Synchronous stations within an assembly line

All stations have unique downtime

Summed-up they can create a LOW overall Availability!

Remember that a line of 8 stations that all are rated at 95% availability might seem like a productive line. But… that equates to (.95^8) for an overall availably of 66% for the line!


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.


Buffers & Over-Speed

• Might not be as “Bad” as you think!• Non Value Added; But essential

– Inspection Stations

• 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


Achieved via Simulation

• Where to place buffers

• Where to place over-speeds

• Optimal size of buffers

• Optimal cycle time

• Best combination of both!


Benefits of buffers & Over-Speed

• Break-up or decouple synchronous behavior

• Create a “Push” to downstream operations

• Creating a balance system

• Optimizing impacts of planned downtime

• Can be the low cost solution


SIMUL8 Example


SIMUL8’s Scenario Manager


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!


Q & A

We will accept additional question on LinkedIn “SIMUL8 User Group”

Know the value of non value added

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