ISCI 2015 Successful Lean Project Management

Successful Lean
Project Management
using Simulation
Brian Harrington
MTN-SIM, LLC

SIMUL8 Corporation | SIMUL8.com | info@SIMUL8.com
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About the Presenter
Brian Harrington is a Six Sigma Black Belt with 20
years operations research and simulation experience
at Ford Motor Company (Dearborn, Michigan, USA).
He designs and implements manufacturing process
improvements which incorporate many conflicting
objectives such as robust, flexible, and Lean systems.
Now running his own discrete event simulation specialists firm MTN-SIM
LLC, he continues to deliver high quality complex models for a wide
range of manufacturing, healthcare, and business process
improvements. He also acts as a technical ambassador for SIMUL8
Corporation assisting in teaching, mentoring, marketing, and consulting
projects.

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MTN-SIM, LLC
Whitefish, Montana, USA
ISCI 2015
12 ½ hours apart and 65°
different!

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Housekeeping
1. Audio
2. Q and A

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Project Management using Simulation
• The facts about most projects
• Factors to consider when managing a project
• What’s still important even if you’re “Lean”
• Creating trade-offs and balancing
Money
Time
Quality

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The Facts…
IBM Institute for Business Value Study
(48 countries, 1400 samples)
60% of projects fail to meet their objective
44% fall short on at least one of their Cost, Quality, Time
objectives
15% miss all of their objectives or are stopped by management
20% Highly successful (“Change Architects”)
35% Moderately successful
45% Below average successful
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1 Article: “Making Change Work” IBM 2010
Sample size 1,500 practitioners worldwide
2 Article: “Making change work . . . while the work keeps changing” IBM 2014
Sample size 1,380 practitioners worldwide
By Hans-Henrik Jorgensen, Oliver Bruehl and Neele Franke 2014
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Cost, Quality, and Time
Small or Large, Projects…
Need to be on Budget!
On Time!
And Strive for Continuous Improvement of Quality!
Project Management
How does Lean Manufacturing
concepts affect the stool?

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Enterprise Success Equates to…
 Shorter Development Time
 Beating your Competition to Market
 Delivering Quality
 Lean… with knowledge!
The pressure is on Project Management!

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But… we are a Lean Company!
 What does it mean to you?
 What does it mean to your management?
 How does it affect your company?

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Lean Manufacturing Def’n
 Something that the customer is willing to pay for
 Added value to the customer
 Piece to piece part flow
 Reduction of waste
 Reduction of defects
 Uses pull systems (Kanban)
 Value Stream Mapping
 Toyota Production System
 …

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Lean within Automotive
Plant Reductions… but volume up
 Increased Complexity
o Several different vehicle-types running-down the same line
o Tool Reuse
 Standardization
o Process & Tools
o Sub-Systems & Parts
 Trained work-force

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Include C,Q,T Metrics into your Simulation

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Simulation metrics
• Throughput (JPH)
– Changeovers
– Batch Builds
• Number of Repairs
– Repair rate
• Number of Scrapped
Units
– Scrap rate
• Cost
– Number of Carriers
– Number of Pallets
– Number of Tugs & Racks
– Number of Robots

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Cost
Cost Avoidance- Biggest bang for your buck!
• Comparing simulation scenarios
• Equipment Costs
Replication
• Can you replicate these actions elsewhere?
Additional Cost Measures
•Cost per unit
•Material Costs
•Scrap Costs
•Resource & Labor Costs
Designing your Lean System
Standardization
Visual Management

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Costs may increase as you
become Lean!
 Training workforce
 Problem elimination
 Improving quality
 Reduction of inventory
 Reduction of workforce
Getting more out of your team!

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Quality
• Equipment
• Product Design
• Method/Process
• Tests
• Repairs
Where to place quality equipment within your facility,
and how much is necessary?

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Quality Example
Strategically placing a vision detection
system to analysis weld integrity and
random imperfections.
Reduces scrap
Reduces destructive testing
Reduces heavy & light repairs
Prevent Recurrence!

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Quality within a Bodyshop
Where to place quality equipment within your facility, and how much is
necessary?

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Time
What Discrete Event Simulation does best
The model is an animated database of events taking place at
discrete times; producing realistic behavior and results.
Predicts the facilities capability (Parts per Hour)
Provides insight into system performance (Wait, Blocked)
Optimize operating patterns (Shifts, Planned DT)
Predicts long-term behavior (1 yr. of production)
Includes outliers (Catastrophic delays)

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We have the Time
Cycle Times
Changeover Time
Breakdown Time
Shift Patterns
Conveyor Speeds
Resource Times
Travel Matrix
Dwell Times
Shelve Life Time
Delays
Conditional Time
Load Time
Unload Time
Simulation Time
Warm-up Time
… The list goes on
Increased Efficiency & Line
Balancing

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Keep your eye on the ball
Simulation models can…
Address all three areas of concern
Justify trade-offs within your development plan
Identify interrelationships between key input factors
Provide the muscle to keep your project on target!
Q TC
Q TC
Q
TC

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“The Goal”
20 years ago… As a member of the Ford College
Graduate Program “The Goal” was a one of three
books given out to all new engineers.
Protective Capacity and Non-Value Added is a term
developed/used by Dr. Eli Goldratt, author of “The Goal”.
“Know the value of your Non-Value Added!”
http://www.simul8.com/blog/know-the-value-of-non-value-added/

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Non-Added Value
Activities that don’t contribute to the product or
process; considered waste and can be eliminated
from the process.
 What is in the process that is
deemed as Non-Value Added?

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Buffers & Conveyors
Area of Concern
Become labeled as “Non Value Added”
They become labeled as waste
They become a “bad” word

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Protective Capacity
• Extra capacity strategically placed around
bottlenecks and constraints
• Protective Capacity resides in:
 Buffers
 Over-speed
 Backup strategies
 Parallel Lines

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So you are a Lean Company?
Why are there so many parts on the shop floor?
You might have a lean configuration… but it’s not
working!
Successfully implementing Lean Manufacturing
requires an extensive layered discipline change
throughout the organization.
60% of projects fail to
meet their objective!

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Buffers & Over-Speed
• Might not be as “Bad” as you think!
• Non Value Added; But essential
 Inspection Stations
 Decoupling
• Strategically located, right sized, protective
capacity is effective!
 Can be low cost solution
 Can be optimized to be as “Lean” as your company can
manage

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Successful Approach to Becoming Lean
Lean Manufacturing is much more than just
addressing so called “non-value added buffers”!
There are several other important factors within a
true lean system from: standardization, reliability,
trained work-force, reduction of defects, the list goes
on.
Simulation can provide great data-backed insight
into implementing suggested lean changes!

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Simulation addresses Lean Concepts
Visualize Process
A picture is worth a 1000 words; an animation is worth a 1000 pictures!
Focus on Process Flow
Completely covered & beyond!
Strive to Limit “Work in Progress”
Apply TOC Concepts!
Continuous Improvement
Simulation Experimentation & “What If” Analysis

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Balanced Project Management
Project Managers must keep the project moving forward
How?
Corporate Strategy
1.Data-backed Decisions
2.“Simulation Milestones” within your strategic timeline
3.“Simulation Sign-Offs”
4.Trained workforce
5.Know your “Protective Capacity”
Simulation studies must be sized
properly to deliver Results at Key
Milestones!

Questions?

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Questions?
If you have any questions around this topic,
please email: brian.h@simul8.com
Continue the discussion on the SIMUL8 Users Group
– LinkedIn Group

ISCI 2015 Successful Lean Project Management

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