Where Innovation Is Tradition Project #3: Production Cost Savings at Washington Post SYST 798/OR 680 Progress Report #2 31 March 2011 Thomas Kuklinski Timothy Smith Ling Wu Vladimir Zivkovic
Feb 23, 2016
Where Innovation Is Tradition
Project #3: Production Cost Savingsat Washington Post
SYST 798/OR 680Progress Report #2
31 March 2011
Thomas KuklinskiTimothy Smith
Ling WuVladimir Zivkovic
Where Innovation Is Tradition
Overview
• Clients• Problem Statement• Earned Value Management• Task Breakdown Structure and Status• Methodology/Technical Approach• Issues/Concerns• Way Forward• Questions
Where Innovation Is Tradition
Clients
• Kent Renk, Materials Handling Foreman, Washington Post, [email protected],
703-916-2471 (office), 703-916-2471(cell)
• Kim Hammett, Assistant Superintendent for Materials Handling, [email protected],
703-916-2447 (office), 703-869-2463 (cell)
Where Innovation Is Tradition
Problem Statement• Background
• Fall of 2010 GMU students did initial static analysis of the Washington Post’s Shipping and Receiving Department in Springfield, VA
• They conducted a process evaluation, an analysis of labor, and an analysis of routes which resulted in three groups of recommendations:• Labor cuts (implemented)• Route simplifications• Improved data tracking
• Problem Statement• Our objective will be to maximize the efficiency of the Washington Post’s materials
handling system at their four work centers (i.e. Shipping and Receiving Department) in an effort to generate cost savings to the overall operation
• We would like to bring to life and build upon the static analysis done by previous group in a dynamic simulation model of the helper component of the work centers
• Stakeholders• Materials Handling Foreman (Kent Renk)
Where Innovation Is Tradition
Task Breakdown Structure and Status
Where Innovation Is Tradition
Earned Value Management
1/23/2
011
1/27/2
011
1/31/2
011
2/4/20
11
2/8/20
11
2/12/2
011
2/16/2
011
2/20/201
1
2/24/201
1
2/28/2
011
3/4/20
11
3/8/20
11
3/12/2
011
3/16/201
1
3/20/2
011
3/24/2
011
3/28/2
011
4/1/20
11
4/5/20
11
4/9/20
11
4/13/2
011
4/17/2
011
4/21/2
011
4/25/2
011
4/29/2
011
0
100
200
300
400
500
600
700 Washington Post Project Earned Value
Earned Value (BCWP)Actual Cost (ACWP)Planned Value (BCWS)
Hou
rs
Where Innovation Is Tradition
Methodology/Technical Approach• Process Analysis (completed)
• Build upon last group’s work done on process evaluation• Develop a complete and detailed qualitative understanding of how the Shipping and
Receiving Department operates
• Data Collection and Analysis (in progress)• Collect data from both the materials tracking system (i.e. MTC) and subject matter
experts• Obtain descriptive statistics on each component of the system
• Model Selection and Construction (in progress)• Evaluate model alternatives based on quantitative/qualitative data and client needs• Construct and test model (e.g. turn system processes into Arena modules)
• Output Analysis (not started)• Evaluate output in terms of cost and throughput• Iterate
Where Innovation Is Tradition
Process Analysis
Where Innovation Is Tradition
Process Analysis (actual)Daily Insert
Sunday Packaging
Racks
Trucks Materials Handling
2a. Daily Insert Ads
1. Daily Insert Ads & Sunday Packaging
2a. Sunday Packaging
Run of Press
2c. Jackets
3. Completed Jackets
4. Collated Sunday Packaging
Where Innovation Is Tradition
Process Analysis (scope)Daily Insert
Sunday Packaging
Racks
Materials Handling
Input: Sunday Packaging
Output: Completed Jackets
Output: Collated Sunday PackagingRun of Press
Out
put:
Hea
dshe
ets
Input: Daily
Insert A
ds
Where Innovation Is Tradition
Data Collection and Analysis • Labor data
• Obtained labor markup data for this period • Broken down by work center, day, shift, and role
• Assigned helpers within the work centers to specific routes so we know which moves they would be responsible for• This required splitting helpers assigned to specific machines into subsets
(e.g. Collator 4)
Sunday Packaging: Monday 1st Shift (6:30am-2:00pm) 2nd Shift (2:15pm-9:45pm) 3rd Shift (10:00pm-5:30am)Collator 1 2 2 0Collator 2 0 0 0Collator 3 2 2 0Collator 4 3 3 3Total 7 7 3
Where Innovation Is Tradition
Data Collection and Analysis • Route data
• Obtained Summary Report for February 7-12 created by MTC• Data obtained for a “normal” week of work• Contains pallet moves for all materials throughout the system
• Mapped all of the routes to specific areas within our system so that we know how everything interacts• Client assisted with determining which routes were not relevant• This all informed our Process Analysis understanding
• Obtained descriptive statistics on route times for model input, specifically route times
ISSUE DATE PALLET ID CLASS DESCRIPTION LOCATION DATE / TIME USER ID LOCATION DATE / TIME
06/22/2008 R555147 CONSUMABLE Stretch wrap, clear HAARHOFFDS RD0101/06/2011
12:48:45 PM
06/22/2008 R555147 CONSUMABLE Stretch wrap, clear RD0101/06/2011
01:14:49 PM MACKLIND H52A01/06/2011
01:15:44 PM
06/22/2008 R555147 CONSUMABLE Stretch wrap, clear H52A02/07/2011
05:30:33 PM KUBEAG C4CON02/07/2011
05:30:38 PM
Where Innovation Is Tradition
Route Time Statistics• Data options on route duration time• Use estimated data from sponsor (max, min,
mean) for a triangular distribution• Sponsor recommended because of “bad” MTC data
• Use Arena Input Analyzer to find the best fit distribution based on MTC sample of “good” MTC data • Very small sample size
• Looked at both to obtain conclusive results
Where Innovation Is Tradition
Arena’s Input Analyzer
Where Innovation Is Tradition
Arena Input Analyzer Results
• Production Data• Missing production data• Invalid production data• Inconclusive results for route times
• *Estimated client SME data• Client recommended this approach for route times
Where Innovation Is Tradition
Model Selection and Construction• Discussion with client and additional system understanding has allowed us
to settle with an Arena simulation model• It is very important for the client to be able to use the model to
forecast the impact of different labor markups on production targets for both daily inserts and Sunday packaging• Phase 1 - Develop an Arena model that allows the client to play
with “what-if” labor markups to hit production targets (required)• Phase 2 – Add on an optimization engine that determines labor
markups at minimal cost to the client to hit production targets (desired)
• Based on Process and Data Analysis, an Arena model has been started• Architecture, labor markups by day/shift, and route time & assignments finished• Arrival processes by day/shift, internal business logic, and production targets still being
analyzed
Where Innovation Is Tradition
Model Selection and Construction (actual)
C1 Machine
S1 MachineDockDock
Run of Press
U(2,5)U
(4,5
)
U(6,8)Normal(2, 4)
EXP(10)
Raw Materials
Jack
ets
EXP(5)
Monday, Shift 1
Production Targets
Where Innovation Is Tradition
Model Selection and Construction (scope)
C1HS
S1HS
DockRack
ROP
U(2,5)
U(6,8)EXP(5)
Raw Materials Monday, Shift 1
Production Targets
Jackets
C1PZ
C1PZ
EXP(5)
EXP(5)
Where Innovation Is Tradition
Model Selection and Construction (Arena)
Where Innovation Is Tradition
Issues/Concerns• Working with sponsor to obtain accurate business
rules to apply to model components• Currently there is no clearly defined business rules on the
production processes at the work center• Depends on sponsor’s ability to articulate, analyze, and abstract
general business rules of the production processes
• Packaging the Arena simulation model• Graphical User Interface• Model for each day vs. Large dynamic model
Where Innovation Is Tradition
Way Forward• Data Collection and Analysis
• Arrival Process Distributions (Input Analyzer)– Determine raw material arrival processes from the rack– Determine machine output arrival process (e.g. C1, S1, etc.)
• We are waiting for all of this data to be provided• Modeling
• Determine internal business rules– Rack to C1 vs. C2 vs. C3 vs. C4– S1 to Z1 vs. Z2 vs. Z3– Etc.
• Look into production targets• Begin identifying output analysis components to investigate
Where Innovation Is Tradition
Questions?Washington Post Project - Web site