Lean Simulation

1. Overview The simulation will be run under varying circumstances of demand and layout. First on a Batch production approach and them as two Lean approaches and the differences recorded and discussed. There are two products to be assembled. A short arm door handle and a long arm door handle. There are 4 workstations: Arm Assembly; Base assembly; Final Assembly and Final Inspection. Initially, the stations should be set up at least 10 feet apart. The assemblies are as follows: Arm Assembly Station (Uses small, red bins for Short Arms and long, red bins for Long Arms) a sample of each type of assembly is provided. Base Assembly Station (Uses long blue bins I.D. half for short arm bases and the rest for long arm bases) A sample of the assemblies is provided. Final Assembly Station (Fed by sub assemblies and returns bins to them) a sample of each type of finished assembly is provided 2. Assign job responsibilities and brief the group on how the simulation will take place. Position Production Manager 3 Operators 3 Material Handlers Inspector Customer Responsibilities - Assign work, handle problems, ensure quality, cost and Delivery is met effectively. - Assemble parts correctly and in a timely manner - Move material between operations, (2 for Sub assembly To Final Assembly + 1 for Final Assembly to Inspection) - Conduct final inspection and inform Production Manager of any problems. - Requests product mix and delivery requirements. receives and counts finished product and keeps track of elapsed time. - Provides plant with raw materials

Supplier

3. Start Batch Simulation Give starting instructions: You are producing 2 types of door handles (short and long arm). You have just received an order for 100 units (50% of each type) for delivery ASAP. There are 3 assembly stations and one inspection station. The current minimum batch size is 10 units before setting up and switching to the next arm size. Since the customer wants the product delivered to match the sales mix as closely as possible the schedule of short and long arm product should reflect this. (i.e. 10 short arm then 10 long arm then 10 short arm .. to 100) Give the group about 5 min to get familiar with the operations and get organized, then tell them to start. (Start Timer) 4. After 3 minutes the customer tells the Production Manager that their requirements have changed and they now require 1/3 short arm handles and 2/3 long arm handles. Please reschedule production and start producing ASAP. 5. Time how long it takes to get back into production again. 6. After a total of 5 minutes stop and record details of production conditions on the matrix. 7. LEAN APPROACH SIMULATION We still assume that a 1-piece flow situation is possible. For the simulation purpose we can assume that 1 piece represents a much smaller batch size than 10 pieces and this is the point that we are trying to get across. A batch size to the final customer is still 10. 8. Starting layout for LEAN: Arm Assembly: 2 small, red bins for short arms 1 assembly per bin. 2 large, red bins for long arms 1 assembly per bin. DO NOT PRODUCE UNLESS THERE IS AN EMPTY BIN Base Assembly: 2 large, blue bins identified for short bases 1 assembly per bin. 2 large blue bins for long bases 1 assembly per bin. DO NOT PRODUCE UNLESS THERE IS AN EMPTY BIN Final Assembly: Is fed by sub assemblies and passes the assembled units on to inspection in the respective what long and short arm bins 1 assembly per bin. Final Inspection:

Receives finished Short and Long Assemblies in separate bins (1 per bin) inspects them and passes them on to the customer in batches of 10. Rejected units are separated and the empty bins are returned to the sub-assembly operations. As before, we will start with the customer wanting 100 units 50/50 finished short and long assemblies ASAP. Give the group about 5 minutes to get familiar with the operations and get organized, then tell them to start. (start timer) 9. After 3 minutes the customer now tell the Production Manager that their requirements have changed and they now require 1/3 finished short assemblies and 2/3 finished long assemblies. Please reschedule production and start producing ASAP. 10. Time how long it takes to get back into production again. 11. After a total of 5 minutes stop and record details of production conditions on the matrix. 12. Summarize Discuss differences between Batch and Lean approach. Explain the principle of Kanban and based on the bins in the simulation. Discuss the need for small lot sizes and quick set up. 13. Build to order Run the process one more time under the same condition except move the stations close together to reduce the need for as much material handling. Remove the need for bins allow just movement of parts. The customer will request each assembly as he needs it. i.e. one long, one short, one short in whatever order they want.

Run 1 5 min # finished to customer # defects Inventory costs Headcount Problem downtime Comments

Run 2 5 min

Run 3 5 min

Calculations
Inventory costs: $1 per pin of raw materials (a 4 pin block would be $4) $1 per pin of assemblies plus $1 for every pin connection (long arm base assembly would have 8 pins plus 4 pins plus 4 pins connected = $16) Long arm final assemblies would be 8 pins plus 4 pins plus 4 pin plus 8 pins plus 4 connected plus 4 connected plus 2 connected = $34 short arm handles would be 8 + 4 + 4 + 2 + 6 (pins) + 4 + 4 + 2 + 2 (connections) = $36

Headcount is a measure of direct and indirect costs. Problem downtime is calculated in minutes and seconds.

Base Assembly Operation

The purpose of this operation is to assemble long bases and short bases subassemblies. Long base assembly Step 1: Take one 8 pin base block and attach a four pin mounting block on the top of the base block making sure the sides of the base block and mounting block are flush. (see diagram)

Long Base Assembly Four pin mounting block

Eight pin base block

Short base assembly Step 1: Take one 8 pin base block and attach a four pin mounting block on the top of the base block making sure that three sides of the base block and mounting block are flush. (see diagram) Step 2: Take one 2 pin upper block and attach to the top of the four pin mounting block making sure that three sides of the 2 pin upper block, four pin mounting block and the eight pin base block are flush. (see diagram) Short Base Assembly 2 pin upper block

8 pin base block

4 pin mounting block

Arm Assembly Operation

The purpose of this operation is to assemble long arm and short arm subassemblies. Long arm assembly Step 1: Take one 4 pin mounting block and attach a straight 8 pin handle block on the top of the mounting block making sure two of the sides of the handle block and mounting block are flush. (see diagram) Straight 8 pin handle block

4 pin mounting block

Short arm assembly Step 1: Take one 4 pin mounting block and attach a straight 6 pin handle block on the top of the mounting block making sure that two sides of the handle block and mounting block are flush. (see diagram)

Straight 8 pin handle block

4 pin mounting block

Final Assembly Operation

The purpose of this operation is to complete the final assembly of long and short assemblies. Final long assembly: Step 1: Take one long arm assembly and one long base. Attach the long arm assembly to the base in front of the 4 pin mounting block attaching it to the 4 exposed pins of the long base assembly. (see diagram) Long arm assembly

Finished Long Assembly 4 pin mounting block Exposed pins

Long base assembly

Final short assembly: Step 1: Take one short arm assembly and one short base assembly. Attach the short arm assembly to the base in front of the 4 pin mounting block attaching it to the 4 exposed pins of the short base assembly. (see diagram)

Short arm assembly

Short base assembly Exposed pins Finished Short Assembly

4 pin mounting block

Final Assembly Inspection

100% inspect all parts and packs Check final assembly for the following defects Blocks not seated correctly Any assembly that is contaminated by falling on the floor Any assembly that comes apart due to handling damage Any assembly that is incorrectly assembled Any pack size that is not correct (10 pack or single pack) o If a defect is found in a pack it must be sent back to correct the pack size with good parts. All parts must be re-inspected

Finished Short Assembly

Finished Long Assembly

Material Handling
Material handling will move complete packs from one assembly operation to the next. Material handling will move complete packs from the final assembly operation to inspection. Material handling will move complete packs from the final assembly operation to shipping. Material handling will return all empty baskets to the appropriate areas.

Supplier
The supplier will disassemble all assemblies after inspection and return the blocks to the appropriate departments for assembly. (This is primarily used to keep the assembly lines supplied with raw materials but it also will demonstrate what happens when there are problems with supply)

Guide to Lean Simulation Assemblies

Dark Grey Red Grey Short Base Assembly

Red Grey Long Base Assembly

Red

White Red

Short Arm Assembly

Long Arm Assembly White

Finished Short Assembly

Finished Long Assembly