Layout Optimisation
through VSM
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No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
Lean Value Stream
Speed and
effort
required of
Workers
Speed with which
Material Flows
through
Manufacturing
process
Lean is the continual effort requiring embracing of several
tools, support systems, and people.
What is Value Stream
A Value Stream consists of everything that transforms
Materials into Finished Goods:
• Communication all along the Supply Chain
regarding orders and order forecast
•Material Transport and conveyance
•Production Planning and Scheduling
•The Network of Processes and operations through
which material and information flows in time and
space, as it is being transformed.
What is Value Stream?
Manufacturing Activity
Order delivered
Order Placed
Time line
Choice of the Value Stream Focus
Product-Quantity Analysis
PARETO CHART
180000
80000
70
60
50
40
60000
30
40000
20
20000
10
0
0
FORD CD132
FORD D258
FORD D333
TATA SAFARI
PRODUCT
QUANTITY
CUMM. %
TATA INDIGO
PERCENTAGE
80
Choose Value Stream with
20(variants) : 80 (volume) ratio
100000
100
90
72
120000
QUANTITY
100
84
160000
140000
99
95
Choose the Value Stream
√
√
√
√
√
Products Grouped into
one family as the process
routing is similar
√
√
√
√
√
visual inspection
√
√
√
√
√
read back
√
√
√
√
√
brush cleaning
√
√
√
√
√
steeper moter
√
√
√
√
√
programing
√
√
√
singulation
SMD-4
√
√
√
Ultrasonic cleaning
SMD-3
√
√
√
√
√
Visual inspection
SMD-2
√
√
√
√
√
Lead cutting
SMD-1
√
√
√
√
√
TH-2
screen printing
√
√
√
√
√
TH-1
PR inspection
FORD CD132
FORD D258
FORD D333
TATA SAFARI
TATA INDIGO
Reflow soldering
PROCESS
Product-Routing Analysis
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
Ford Family value stream
selected as it meet
20 : 80 ratio,
VSM MAP – 2003-04
OLD STATE VSM SNAPSHOT (2003-04)
SR. NO
METRICS
2003-04
1
PRODUCTION PER MONTH
2
NOS. OF OPERATORS
17 NOS
3
TOTAL LEAD TIME
23 HRS
4
NO. OF OPERATIONS
18 NOS
5
TOTAL CYCLE TIME
583 SEC
6
CHANGE OVER TIME
1800 SECS
7
WIP
2342 NOS
8
ON-TIME DELIVERY
9
ASSEMBLY LINE REJECTS
3177PPM
9
CUSTOMER LINE REJECTS
10 PPM
10
SPACE
61 SQMT
11
TRAVEL DISTANCE
94 MTRS
20,000 NOS
100%
Layout – 2003-04
PR INSPECTION
SCREEN
PRINTING
SMD-1
SMD-2
SMD-3
SMD-4
TH SOLDERING
1
TH SOLDERING
2
LEAD CUTTING
VISUAL
INSPECTION -1
US CLEANING
SINGULATION
PROGRAMMING
S. MOTOR
SOLDERING
BRUSH
CLEANING
READ BACK
AND TIME RATE
VISUAL - 2
FORD CD-132
OPERATIONS
TAKT TIME
No. of Operators – 17
CYCLE TIME (SEC)
REFLOW
SOLDERING
Line Balance Chart (2003-04)
140.0
120.0
100.0
80.0
60.0
40.0
20.0
0.0
No. of Operations – 18
SECONDS
Value Stream Status Snapshot (2003-04)
Strong Points:
• Customer satisfied for Delivery. Cost and Quality needed
improvement
• Work Place Organized and Standardized
• Good Employee Participation and Commitment to Lean
Problems / OFIs:
• Extra hours of work to manage 3 bottleneck areas
• Inconsistent flow
• High inventory between processes
• High changeover time
• High Level of Skill required and complicated planning.
Improvement Planning
1. CUSTOMER DEMAND STAGE – Understanding
customer demand, including quality characteristics,
lead time and price.
2. FLOW STAGE - Implementing continuous flow
manufacturing to ensure right products for both
internal and external customers, at right time, in the
right quantity.
Customer Demands – 2003-04 vs. Expected
SR. NO
METRICS
1
PRODUCTION
PER MONTH
ON TIME
DELIVERY
ASSEMBLY
LINE REJECTS
COST
2
3
4
2003-04
EXPECTED
20,000 NOS 26,000 NOS
100%
100%
3177 PPM
500 PPM
REDUCTION BY 5%
Calculating TAKT Time
AVAILABLE PRODUCTION TIME
TAKT TIME =
TOTAL DAILY QUANTITY REQUIRED
Available Production time
Rest breaks
= 480 minutes
= -25 minutes
= 455 minutes
= 27300 sec.
Demand Production per Month
Working days Available per month
Demand Per Day
= 26,000 nos.
= 26 days
= 1000 nos.
27300 sec
TAKT TIME =
1000 nos
= 27.3 sec
Line Balance Chart (2003-04)
Determining whether Customer demands can be met using
current Production Methods
FORD CD-132
140.0
120.0
SECONDS
100.0
Kaizen Area Identified
Considering Customer
demand
80.0
60.0
40.0
20.0
0.0
OPERATIONS
CYCLE TIME (SEC)
NOS. OF OPERATORS NEEDED :
TOTAL CYCLE TIME
TAKT TIME
TAKT TIME
=
22 OPERATORS
593.6
SEC =
Snapshot Considering Customer Demand
Problems:
•Extra hours of work to manage 3 bottleneck areas
• Inconsistent flow
• High inventory between processes
• High changeover time
• High Level of Skill required and complicated planning.
Solution:
• Kaizens to Increase capacity of bottleneck operations.
• Manual SMD – Auto CNC Pick and Place Machine
• Ultrasonic Cleaning increased 20nos / cycle to 40nos / cycle.
• Provide fixture for Stepper Motor Soldering
Kaizen - Customer demand stage
SMD Process
Before – 2 manual cells
After
BENEFITS : 75% reduction in Manpower
Kaizen - Customer demand stage
Ultrasonic Cleaning
Before
Ultrasonic Cleaning Chamber
having round beaker
accommodating 20 circuits
After
Change the shape of the
container to rectangular shape so
as to accommodate 40 circuits
BENEFITS : 50% reduction in Cleaning Time/Manpower
Kaizen - Customer demand stage
Stepper Motor Soldering
Before
After
Soldering Without Fixture
BENEFITS : 58% reduction in Mampower
100% Right First Time
Soldering With Fixture
Kaizen - Customer demand stage
Programming and Read Back
Before
After
Manual Read-back and Time
Rate Checking
Semi Automatic Testing system
BENEFITS : 89 % reduction in Manpower
FLOW STAGE IMPROVEMENTS
1. MUDA Elimination
2. Line Balancing
3. Controlling Upstream Production
Kaizen – Muda Elimination
PR Inspection
Before
After
Activity Shifted to
Supplier
100% Visual Inspection
BENEFITS : 17% reduction in Manpower
Kaizen – Muda Elimination
Before
Screen Printing
After
3.0 mtrs
0.5 mtrs
Screen
Printer
P&P
M/C
Unloading
loading
7-8 Walking steps per cycle, High
operator fatigue.
Screen
Printer
Unloading
P & P M/C
loading
Shifted Screen Printing Machine
close (0.5mts) to Auto SMD M/C.
Next operation can be accessed
within a hands reach.
BENEFITS : 20% reduction in Cycle Time, Reduction in operator fatigue
Kaizen – Muda Elimination
Reflow Soldering Strip Layout
Before
After
Circuit
Board
Reflow
Oven
Tray
8 strip Per Cycle
BENEFITS : Output Increased by 22%
11 strip Per Cycle
Kaizen – Muda Elimination
Visual Inspection
Before
After
Eliminated Visual
Inspection due to
Process Control
100% Visual Inspection
BENEFITS : Manpower saving : 4 Man Hrs / day.
Cycle time reduction by 5.5 %
VSM MAP – SMD PROCESS
2003-04 FLOW
Operation combined
and automated
Operation Eliminated,
Vendor development
PR
INSPECTI
ON
I
1
.
SCREEN
PRINTING
I
1M .
1500
nos
26
days
SMD-1
I
2
.
80
nos
SMD-2
2 .
I
24
nos
Increase in Output
SMD-3
I
2
.
48
nos
SMD-4
I
2
.
12
nos
REFLOW
SOLDERIN
G
I
1M .
72
nos
CT : 27.3sec/Piece
(4ECB)
CT :15.3sec/Piece
CT : 32sec/Piece
CT : 30.4sec/Piece
CT : 34.1sec/Piece
CT : 23.6sec/Piece
CT : 20.3sec /Piece
C/O : 0 mins
C/O : 0 mins
C/O : 0 mins
C/O : 0 mins
C/O : 0 mins
C/O : 0 mins
C/O : 0 mins
Uptime : 100%
Uptime : 100%
FLOW AFTER MUDA ELIMINATION
SCREEN
PRINTING
I
1M .
1500
nos
AUTO
SMD
I
2
.
80
nos
REFLOW
SOLDERIN
G
I
1M .
72
nos
CT :15.3sec/Piece
CT : 6sec/Piece
CT : 20.3sec /Piece
C/O : 0 mins
C/O : 0 mins
C/O : 0 mins
Uptime : 100%
Uptime : 100%
VSM MAP – SOLDERING AND CLEANING
2003-04 FLOW
Operation
Combined
Operation
Combined
TH-1
SOLDERIN
G
I
1
TH-2
SOLDERIN
G
.
1
I
240
nos
LEAD
CUTTING
.
1
I
160
nos
Combining
Cleaning and
Singulation
operation
Eliminated
operation, by
eliminating
Internal Quality
rejection
VISUAL
INSPECTIO
N-1
.
1
I
52
nos
ULTRASON
IC
CLEANING
.
2
I
256
nos
SINGULAT
ION
.
1M .
I
240
nos
160
nos
CT :91sec/Strip
CT : 109sec/ Strip
CT : 43.7sec / Strip
CT : 87.4sec/Strip
CT : 1020sec/5 strip
CT : 27sec/strip
C/O : 0 mins
C/O : 0 mins
C/O : 0 mins
C/O : 0 mins
C/O : 0 mins
C/O : 0 mins
Uptime : 90%
Uptime : 100%
Uptime : 100%
FLOW AFTER MUDA ELIMINATION
TH-1
SOLDERIN
G
I
1
.
240
nos
TH-2
SOLDERIN
G
I
1
.
160
nos
LEAD
CUTTING
I
1
.
52
nos
ULTRASON
IC
CLEANING
I
2
.
SINGULAT
ION
I
1M .
160
nos
240
nos
CT :91sec/Strip
CT : 109sec/ Strip
CT : 43.7sec / Strip
CT : 1020sec/5 strip
CT : 27sec/strip
C/O : 0 mins
C/O : 0 mins
C/O : 0 mins
C/O : 0 mins
C/O : 0 mins
Uptime : 100%
Uptime : 100%
VSM MAP – SOLDERING TESTING
2003-04 FLOW Simplified operation
with fixture and
combined with
Cleaning
Operation
Combined
PROGRAM
MING
I
Combined with
Testing Operation
STEPPER
MOTOR
SOLDERIN
G
1M .
126
nos
BRUSH
CLEANING
Partially Combined
with Cleaning
operation
READ BACK
AND TIME
RATE
CHECKING
VISUAL
INSPECTION
I
I
I
I
96
nos
66
nos
520
nos
190
nos
CT : 19.5 Sec/ Piece
CT : 30.3sec/Piece
CT : 27.3sec/Piece
CT : 129sec/Piece
CT : 68.3sec/Piece
C/O : 0 mins
C/O : 0 mins
C/O : 0 mins
C/O : 0 mins
C/O : 0 mins
FLOW AFTER MUDA ELIMINATION
STEPPER
MOTOR
SOLDERIN
G
BRUSH
CLEANING
VISUAL
INSPECTION
PROGRAM
MING
I
I
I
I
96
nos
66
nos
190
nos
126
nos
1M .
CT : 30.3sec/Piece
CT : 27.3sec/Piece
CT : 68.3sec/Piece
CT : 19.5 Sec/ Piece
C/O : 0 mins
C/O : 0 mins
C/O : 0 mins
C/O : 0 mins
Line Balance Chart
After Customer Demand fullfilment & MUDA elimination
140.0
120.0
100.0
80.0
60.0
40.0
20.0
0.0
No. of
Operation : 18
No. of
Operators: 22
OPERATIONS
04-05
OPERATIONS
CYCLE TIME (SEC)
TAKT TIME
VISUAL - 2
TESTING
BRUSH
CLEANING
S. MOTOR
SOLDERING
PROGRAMMIN
G
SINGULATION
US CLEANING
LEAD CUTTING
TH
SOLDERING 2
TH
SOLDERING 1
REFLOW
SOLDERING
AUTO SMD
45.0
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
SCREEN
PRINTING
SECONDS
SECONDS
OLD 2003-04
No. of
Operation : 13
No. of
Operators: 6
After MUDA Elimination
Problems :
•Inconsistency in operations
•Ineffective utilization of resources
•Some operations faster than Takt time
Solution : Line Balancing
VSM MAP – SMD PROCESS
FLOW AFTER MUDA ELIMINATION
SCREEN
PRINTING
I
1M .
1500 nos
AUTO SMD
I
2
REFLOW
SOLDERING
1M .
.
I
80 nos
72 nos
CT :15.3sec/Piece
CT : 6sec/Piece
CT : 20.3sec /Piece
C/O : 0 mins
C/O : 0 mins
C/O : 0 mins
Uptime : 100%
FLOW AFTER LINE
BALANCING 2005-06
Uptime : 100%
SCREEN
PRINTING,
AUTO SMD
AND REFLOW
MAX : 120 PIECES
FIFO LANE
CT : 23.9sec/Piece
C/O : 5 mins
UPTIME : 96%
AVAIL : 27300SEC
RFT : 99.99 %
VSM MAP – SOLDERING AND CLEANING
FLOW AFTER MUDA ELIMINATION
Operation
Combined
TH-1
SOLDERIN
G
I
1
.
240
nos
Operation
Combined
TH-2
SOLDERIN
G
I
Combining
Cleaning and
Singulation
operation
1
.
160
nos
LEAD
CUTTING
1
I
ULTRASON
IC
CLEANING
.
2
I
52
nos
SINGULAT
ION
.
1M .
I
240
nos
160
nos
CT :91sec/Strip
CT : 109sec/ Strip
CT : 43.7sec / Strip
CT : 1020sec/5 strip
CT : 27sec/strip
C/O : 0 mins
C/O : 0 mins
C/O : 0 mins
C/O : 0 mins
C/O : 0 mins
Uptime : 100%
Uptime : 100%
FLOW
AFTER LINE
BALANCING
2005-06
TH
SOLDERING
MAX : 120 PIECES
LEAD
CUTTING,
INSPECTION
CLEANING,
SINGULATION
FIFO LANE
MAX : 120 PIECES
FIFO LANE
CT : 27.3 sec/Piece
CT : 27.3 sec/Piece
C/O : 0 mins
C/O : 0 mins
UPTIME : 100%
UPTIME : 98%
AVAIL : 27300SEC
AVAIL : 27300SEC
RFT : 100 %
RFT : 100 %
FIFO LANE
introduced with
max. qty equivalent
to Pitch time
VSM MAP – SOLDERING AND TESTING
FLOW AFTER MUDA ELIMINATION
Simplified operation
with fixture and
combined with
Cleaning
STEPPER
MOTOR
SOLDERIN
G
Partially Combined
with Cleaning
operation
BRUSH
CLEANING
VISUAL
INSPECTION
PROGRAM
MING
I
I
I
I
96
nos
66
nos
190
nos
126
nos
FLOW
AFTER LINE
BALANCING
2005-06
1M .
CT : 30.3sec/Piece
CT : 27.3sec/Piece
CT : 68.3sec/Piece
CT : 19.5 Sec/ Piece
C/O : 0 mins
C/O : 0 mins
C/O : 0 mins
C/O : 0 mins
SM
SOLDERING &
BRUSH
CLEANING
1
MAX : 120 PIECES
.
FINAL
INSPECTION
1
MAX : 120 PIECES
.
FIFO LANE
PROGRAMMIN
G AND
READBACK
1
MAX : 120 PIECES
.
FIFO LANE
FIFO LANE
CT : 22.8 sec/Piece
CT : 27.3 sec/Piece
CT : 27.3 sec/Piece
C/O : 0 mins
C/O : 0 mins
C/O : 1 mins
UPTIME : 100%
UPTIME : 100%
UPTIME : 98%
AVAIL : 27300SEC
AVAIL : 27300SEC
AVAIL : 27300SEC
RFT : 100 %
RFT : 100 %
RFT : 100 %
Line Balancing Chart
After LINE BALANCING
45.0
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
VISUAL - 2
TESTING
BRUSH
CLEANING
S. MOTOR
SOLDERING
PROGRAMMING
SINGULATION
US CLEANING
LEAD CUTTING
TH SOLDERING
2
TH SOLDERING
1
REFLOW
SOLDERING
AUTO SMD
No. of
Operation : 13
SCREEN
PRINTING
SECONDS
AFTER MUDA ELIMINATION
SECONDS
AFTER LINE BALANCING
30.0
25.0
20.0
15.0
10.0
5.0
0.0
No. of
Operation : 6
OPERATIONS
CYCLE TIME (SEC)
TAKT TIME
Controlling Upstream Production
CONTROL OVERPRODUCTION
CONTROL INVENTORY
REDUCED SPACE
Production Controlling – FIFO LANE
MAX : 120 PIECES
FIFO LANE
Max. Qty in FIFO LANE
Standard Pack-out Qty
Max. Qty in FIFO LANE
= Standard Pack-out Qty
= 120 nos.
= 120 nos.
VSM Map Present
Layout – 2005-06
Results – 2005-06
Sl.
NO
METRICS
2003-04
2005-06
20,000 NOS 26,000 NOS
IMPROVE
MENT
30%
1
PRODUCTION PER MONTH
2
NOS. OF OPERATORS
17 NOS
6 NOS
65%
3
LEAD TIME
23 HRS
5.5 HRS
76%
4
NO OF OPERATION
18 NOS
6 NOS
67%
5
TOTAL CYCLE TIME
583 SEC
156 SEC
73%
6
CHANGE OVER TIME
1800 SECS
420 SECS
77%
7
WIP
2342 NOS
720 NOS
69%
8
ON-TIME DELIVERY
100%
100%
-
9
ASSEMBLY LINE REJECTS
3177PPM
672PPM
79%
9
CUSTOMER LINE REJECTS
10PPM
5PPM
50%
10
SPACE
61 SQMT
50SQMT
18%
11
TRAVEL DISTANCE
94 MTRS
51MTRS
46%