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Process Optimization ​

How to optimize processes ? ​

  • bottom up: create an atmosphere of continuous improvement.

  • top down: optimize planning and control.

example: Toyota.

Continuous Improvement ​

  • signalling problems is rewarded
  • find causes first, then look for solutions.

Logistical Paradigms ​

3 principles of Operations Management: ​

Main goal:

  • maximize value adding (eliminate non value adding activities)

Internal goals:

  • reduce variability (eliminate disturbances, mistakes variations)
  • reduce complexity (less is more, the easiest solution that works is the best)

what is the optimal balance between reducing variability / complexity

TOC (Theory of Constraints) ​

  • Focus on the bottleneck.
  • Focus on non bottleneck is wasted effort.

Benchmarking ​

  • Learn by performance comparison.
  • Often results in naming/shaming/blaming

ConWIP (Constant work-in-progress) ​

Strive for continuous workload:

  • reduces leadtime
  • improves quality

Advantages:

  • simple principles
  • simple planning and control
  • process wide orientation

Disadvantages:

  • not suitable when there is high variability in the process.

Push vs. Pull vs. ConWIP ​

Push:

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Pull:

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ConWIP:

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Total Access ​

Planning is a weakness, do todays work today! Strive for maximal flexibility

  • Organize on a “walk-in” basis where possible

Advantages:

  • Simple planning and control
  • No access time

Disadvantages:

  • Possible a lot of waiting time
  • Often not realistic

LEAN ​

Eliminate all waste (Muda) focus on efficiency and quality.

Eliminate:

  • Defects
  • Overproduction
  • Transport
  • Waiting
  • Storage (buffers)
  • Movements
  • Doing more than necessary
  • Unused capacities / creativity

Example Lean Instruments:

  • Kaizen Plan-Do-Check-Act
  • Pull Production demand controlled production
  • Line balancing workload control
  • Just-in-Time deliver as late as possible (reduce inventory)
  • Two-Bin bin 1 is used for production, bin 2 is used as reserve, if 1 is empty switch the bins.
  • Poka Yoke "mistake proof" production (originally called idiot-proof, for example if you open the door of a microwave it will stop)
  • Learn by doing productivity improvement by experience
  • Single Minute Exchange of Die leadtime reduction (change production from one product to another in less than 10 minutes)
  • 1:3 and 3:1 1 person can do 3 tasks, 3 persons can do 1 task

Single Minute Exchange of Die ​

(Shingeo, Shingo) Reduction of setup times

  • Perform steps in parallel
  • Create a standardized and optimized process.

Just-In-Time ​

High volume output, with little (intermediate) inventory of materials and parts, by:

  • Group technology: make group of employees responsible for (part of) product.
  • JIT production: working without inventories
  • Quality at the source: quality control in every production step
  • Uniform plant loading: workload and work composition the same every day
  • Focused factory: it is easier to manage small specialized units

Focused Factory ​

Standardize working methods through protocols: efficient, improved quality.

  • Focus first on large customer groups.
  • Reserve capacity for these customers.

Advantages:

  • "repetition may lead to efficiency"
  • Rapid access for patient

Disadvantages:

  • Block access to other patients.

Six Sigma ​

(3,4 mistakes per million)

  • Strive for perfect process: focus on quality.
  • Statistical analyses of processes: eliminate all variations, mistakes etc.

DMAIC cycle:

  • Define: define the problem.
  • Measure: measure performance.
  • Analyse: find the causes.
  • Improve: design validate and select solutions.
  • Control: implement solutions.

How should planning and control be designed ? ​

  • Who ?, what ?, where ?, when ?

Every organization designs this based on:

  • Mission, strategy, vision
  • characteristics of the org. and environment