The Product Wheel Handbook : Creating Balanced Flow in High-Mix Process Operations

219 Pages·2013·2.688 MB·English

by  King, Peter L., King, Jennifer S.

Lean Methods & Implementation / Leadership Strategy / Production Scheduling / Campaign Lot Sizing K
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PRODUCT WHEEL
T H E in
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PRODUCT WHEEL
H A N D B O O K H A N D B O O K
CREATING BALANCED FLOW IN HIGH-MIX PROCESS OPERATIONS
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“Peter King continues to be a thought leader in the spread of advanced manufacturing E
practices throughout the process industries. His product wheel concepts and practices CREATING BALANCED FLOW IN HIGH-MIX
are an excellent resource for plants with multiple products sharing the operating assets.” P
PROCESS OPERATIONS
—Ray Floyd, Shingo Prize-winning author of Liquid Lean and Member of IndustryWeek’s R
Manufacturing Hall of Fame
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“The authors have a gift for writing well, in a way that will keep the reader connected
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throughout this excellent work. It flows through the methodology in a well structured and
logical way… definitely a must-read for any Lean practitioner.” U
—Henrique Fagundes, Senior Project Manager, DuPont
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“The product wheel is a true landmark in the management and organization of the workplace. T
All manufacturing operations searching for a way to organize and level the factory should A

have this book.”
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—Cash Powell, Jr., Editorial Board, Target Magazine, Association for Manufacturing Excellence; B K A
Lead Consultant, Center for Competitive Change, University of Dayton C I
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“A clearly written guide to designing and improving product wheels ... Pete and Jennifer E J
King take you through a logical step by step process without ever resorting to simplistic D B
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recipes ... Highly recommended!”
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—Peter C. Compo, Director of Integrated Business Management, DuPont L
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The Product Wheel (PW) design process has practical methods for finding the optimum H C
sequence, minimizing changeover costs, and freeing up useful capacity. As a testament to
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it’s efficacy, the DuPont™ Company and Exxon Mobil are just two of many companies that H
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have used the product wheel concept to achieve and sustain a competitive advantage.
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Breaking down a fairly complex design process into manageable steps, The Product B G
Wheel Handbook: Creating Balanced Flow in High-Mix Process Operations walks O
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readers through the steps of designing and implementing the PW technique. It includes O
a case study and several examples of product wheels being used by successful
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manufacturing companies—including BG Products, Inc., DuPont, Dow Chemical,
and Appleton.
K15304
ISBN: 978-1-4665-5418-4
90000
Peter L . King
9 781466 554184
Jennifer S. King
www.productivitypress.com

T H E
PRODUCT WHEEL
H A N D B O O K
CREATI N G BALAN CED FLOW I N H I G H-M IX
PRO CESS O PERATI O NS

T H E
PRODUCT WHEEL
H A N D B O O K
CREATI N G BALAN CED FLOW I N H I G H-M IX
PRO CESS O PERATI O NS
Peter L. King
Jennifer S. King
Boca Raton London New York
CRC Press is an imprint of the
Taylor & Francis Group, an informa business
A PRODUCTIV ITY PRESS BOOK
CRC Press
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© 2013 by Taylor & Francis Group, LLC
CRC Press is an imprint of Taylor & Francis Group, an Informa business
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Version Date: 20130102
International Standard Book Number-13: 978-1-4665-5419-1 (eBook - PDF)
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Contents
Acknowledgments ...................................................................................xi
Introduction ..........................................................................................xiii
Why Product Wheels? .....................................................................................xiii
Process Industry Challenges ...........................................................................xiv
Product Wheel Basics ......................................................................................xv
How This Book Is Organized ........................................................................xvi
About the Authors .................................................................................xix
1 The Problem: Production Sequencing, Campaign Sizing,
Production Leveling ...........................................................................1
Challenges Facing Operations Managers—Production Leveling ......................1
Challenges Facing Operations Managers—Random Sequence or
Regular Pattern? ..................................................................................................2
Challenges Facing Operations Managers—Optimum Sequence ......................3
Challenges Facing Operations Managers—Optimum Cycle .............................4
The Insidious Nature of Changeovers ...............................................................6
2 The Solution—Product Wheels ..........................................................9
Product Wheels Defined ....................................................................................9
Product Wheel Terminology ..............................................................................9
Simultaneous Operating Modes ......................................................................13
Product Wheel Characteristics ..........................................................................14
Process Improvement Time ..............................................................................14
Benefits of Product Wheels ..............................................................................15
Product Wheel Applicability .............................................................................15
3 The Product Wheel Design and Implementation Process ................17
Product Wheel Design ......................................................................................17
Step 1: Begin with an up-to-date, reasonably accurate value
stream map (VSM) .....................................................................................17
Step 2: Decide where to use wheels to schedule production ................18
Step 3: Analyze product demand volume and variability—identify
candidates for make to order ...................................................................18
Step 4: Determine the optimum sequence ..............................................18
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vi  ◾  Contents
Step 5: Analyze the factors influencing overall wheel time ...................18
Step 6: Determine overall wheel time and wheel frequency
for each product ........................................................................................19
Step 7: Distribute products across the wheel cycles—balance
the wheel ...................................................................................................19
Step 8: Plot the wheel cycles ....................................................................19
Step 9: Calculate inventory requirements ................................................20
Step 10: Review with stakeholders ..........................................................20
Step 11: Determine who “owns” (allocates) the PIT time .......................20
Step 12: Revise the scheduling process ...................................................20
Product Wheel Implementation .......................................................................20
Step 13: Develop an implementation plan ..............................................20
Step 14: Develop a contingency plan ......................................................21
Step 15: Get all inventories in balance ....................................................21
Step 16: Put an auditing plan in place .....................................................21
Step 17: Put a plan in place to rebalance the wheel periodically ..........21
Kaizen Events ...................................................................................................22
Prerequisites for a Product Wheel ...................................................................23
4 Step 1: Begin with an Up-to-Date, Reasonably Accurate VSM ........... 25
An Example Process—Sheet Goods Manufacturing .......................................25
A Value Stream Map.........................................................................................27
Material Flow—Process Boxes .........................................................................29
Process Step Data Boxes..................................................................................29
Material Flow Icons ..........................................................................................30
Inventory Data Boxes .......................................................................................31
Information Flow .............................................................................................32
Summary ..........................................................................................................35
5 Step 2: Decide Where to Use Wheels to Schedule Production ......... 37
Criteria for Product Wheel Selection ...............................................................37
Analyze the VSM ..............................................................................................38
Forming 1 .........................................................................................................39
Bonder 2 ...........................................................................................................42
Bonder 1 ...........................................................................................................43
Slitter 1 ..............................................................................................................44
Summary ..........................................................................................................44
6 Step 3: Analyze Products for a Make-to-Order Strategy .................. 47
Demand Volume ..............................................................................................47
Demand Variability ..........................................................................................48
Deciding on the Best Strategy for Each Product ............................................49
Summary ...........................................................................................................51
7 Step 4: Determine the Optimum Sequence .....................................53
Changeover Complexity ...................................................................................53
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Contents  ◾  vii
Optimizing the Forming 2 Sequence ..............................................................54
Optimizing the Sequence in Complex Situations ...........................................56
Summary ..........................................................................................................59
8 Step 5: Analyze the Factors Influencing Overall Wheel Time ......... 61
Time Available for Changeovers—The Shortest Wheel Possible .....................61
Finding the Most Economic Wheel Time ........................................................63
Leveling Out Short-Term Demand Variability ..................................................67
An Additional Word about Standard Deviation and CV .................................70
Making Practical Lot Sizes of Each Material....................................................71
Protecting Shelf Life .........................................................................................72
Making to Stock Using a Trigger Point ...........................................................73
Summary ...........................................................................................................74
9 Step 6: Put It All Together—Determine Overall Wheel Time
and Wheel Frequency for Each Product .......................................... 75
EOQ—The Most Economic Wheel Time ........................................................75
The Shortest Wheel Possible ...........................................................................77
Short-Term Demand Variability .......................................................................79
Minimum Practical Lot Size .............................................................................79
Shelf Life ...........................................................................................................80
Summary ..........................................................................................................80
10 Step 7: Arranging Products—Balancing the Wheel ......................... 81
Wheel Resonance .............................................................................................82
Achieving Better Balance .................................................................................83
Wheels within Wheels .....................................................................................83
Summary ..........................................................................................................84
11 Step 8: Plotting the Wheel Cycles ....................................................87
Summary ..........................................................................................................88
12 Step 9: Calculate Inventory Requirements ..........................................89
Inventory Components ....................................................................................90
Total Inventory Requirements .........................................................................91
Inventory Benefit of the Wheel .......................................................................93
Seasonality ........................................................................................................94
Customer Lead Time ........................................................................................96
Summary ..........................................................................................................99
13 Step 10: Review with Stakeholders ................................................101
What to Review ...............................................................................................101
Who to Include ...............................................................................................102
Possible Concerns and Challenges .................................................................103
Summary .........................................................................................................105
14 Step 11: Assign Responsibility for Allocating PIT Time ................ 107
Appropriate Uses of PIT Time ........................................................................107
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15 Step 12: Revise the Scheduling Process ........................................ 109
Wheel Concepts and the Production Scheduling System ..............................109
Visual Management of the Current Wheel Schedule .....................................110
Summary .........................................................................................................113
16 Step 13: Develop an Implementation Plan ......................................115
17 Step 14: Develop a Contingency Plan .............................................117
Possible Wheel Breakers .................................................................................117
Steps in Contingency Planning .......................................................................118
Example of a Contingency Plan .....................................................................118
Summary ........................................................................................................120
18 Step 15: Get All Inventories in Balance ......................................... 121
Summary .........................................................................................................122
19 Step 16: Confirm Wheel Performance—Put an Auditing Process
in Place .......................................................................................... 123
20 Step 17: Put a Plan in Place to Rebalance the Wheel Periodically 127
21 Prerequisites for Product Wheels .................................................. 129
Foundational Elements....................................................................................129
A Highly Motivated, Well-Trained Workforce ................................................129
Standard Work ................................................................................................130
Visual Management .........................................................................................131
Total Productive Maintenance ........................................................................131
A Value Stream Map........................................................................................132
SMED ...............................................................................................................132
SKU Rationalization—Portfolio Management ................................................132
Bottleneck Identification and Management ...................................................133
Cellular Manufacturing and Group Technology ............................................133
Summary ........................................................................................................134
22 Product Wheels and the Path to Pull ............................................ 135
Product Wheels and Pull ................................................................................135
Pull through the Entire Process .....................................................................136
Summary .........................................................................................................140
23 Unintended Consequences—Inappropriate Use of Metrics ............141
Inappropriate Use of Metrics ..........................................................................141
Performance to Plan (PTP) .............................................................................142
Summary .........................................................................................................144
24 Cultural Transformation and Product Wheel Design—
The Synergy ....................................................................................145
Summary .........................................................................................................146
© 2010 Taylor & Francis Group, LLC