Standard Times

Standard Times - V1 page 1

Lean Six Sigma

DMAIC Improvement Process Road Map
Define Measure Analyze Improve Control
Activities
• Review Project Charter • Value Stream Map for Deeper • Identify Potential Root • Develop Potential Solutions • Implement Mistake Proofing
• Validate Problem Statement Understanding and Focus Causes • Evaluate, Select, and Optimize • Develop SOP’s, Training Plan
and Goals • Identify Key Input, Process and • Reduce List of Potential Best Solutions and Process Controls
• Validate Voice of the Customer Output Metrics Root Causes • Develop ‘To-Be’ Value Stream • Implement Solution and
and Voice of the Business • Develop Operational Definitions • Confirm Root Cause to Map(s) Ongoing Process
• Validate Financial Benefits • Develop Data Collection Plan Output Relationship • Develop and Implement Pilot Measurements
• Validate High-Level Value • Validate Measurement System • Estimate Impact of Root Solution • Identify Project Replication
Stream Map and Scope • Collect Baseline Data Causes on Key Outputs • Confirm Attainment of Project Opportunities
• Create Communication Plan • Determine Process Capability • Prioritize Root Causes Goals • Complete Control Gate
• Select and Launch Team • Complete Measure Gate • Complete Analyze Gate • Develop Full Scale • Transition Project to Process
• Develop Project Schedule Implementation Plan Owner
• Complete Define Gate • Complete Improve Gate

Tools Identify and Implement Quick Improvements

• Project Charter • Value Stream Mapping • Process Constraint ID and Takt Kaizen, 5S, NVA Analysis, • Mistake-Proofing/
• Voice of the Customer and • Value of Speed (Process Cycle Time Analysis Generic Pull Systems, Zero Defects
Kano Analysis Efficiency / Little’s Law) • Cause and Effect Analysis Four Step Rapid Setup Method • Standard Operating
• SIPOC Map • Operational Definitions • FMEA Procedures (SOP’s)
• Replenishment Pull/Kanban
• Project Valuation / ROIC • Data Collection Plan • Hypothesis Tests/Conf. • Process Control Plans
• Stocking Strategy
Analysis Tools • Statistical Sampling Intervals • Visual Process Control Tools
• Process Flow Improvement
• RACI and Quad Charts • Measurement System Analysis • Simple and Multiple Regression • Statistical Process Controls
• Process Balancing
• Stakeholder Analysis (MSA) • ANOVA (SPC)
• Analytical Batch Sizing
• Communication Plan • Gage R&R • Components of Variation • Solution Replication
• Total Productive Maintenance
• Effective Meeting Tools • Kappa Studies • Conquering Product and • Project Transition Model
• Design of Experiments (DOE)
• Inquiry and Advocacy Skills • Control Charts Process Complexity • Team Feedback Session
• Solution Selection Matrix
• Time Lines, Milestones, • Histograms • Queuing Theory
• Piloting and Simulation
and Gantt Charting • Normality Test
• Pareto Analysis • Process Capability Analysis
• Belbin Analysis

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Learning Objectives

Know what standard times are and their use in manufacturing
environment

Understand the link between standard time and performance

monitoring

Practice standard KPI calculation

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Why do we need Manufacturing Standard Times?

For capacity, scheduling MRP / SAP

& costing.

To control the processes KPI’s / SAP &

efficiency SIM

You can’t manage what you don’t measure

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 What do we call a standard time?

A predetermined labor or machine time for an

operation to a manufacturing process

In manual assembly In automated assembly

To forecast the number of To forecast the number of

hours the operators should hours an equipment should
work run

Operation Time: OTR Schedule Production Time: SPTR

Or Or
Time Spent: TSR (including Plant Operating Time: POTR
support functions) (including expected down time)

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Which standard times in manual assembly?

Examples:
Machine setter
Feeder
Examples:
Stoppages DVC support
Breakdown functions
Examples: Uncert
estimated

Cleaning ainties
Set up
Maintenance op Non
station training Quality
Examples: CVD
Supply, extern to Examples:
parts removal, process Human error
Time Spent
Operation Time

Administrative task Operator scrap repair

per batch activity Part sorting
TSR

Frequential Examples:
OTR

Example: non VA
assembly Operator
Predetermined

operations familiarizations
Cyclic Lack of training
Design Time

.
non VA Useless gestures

Examples:
Useful Time

DT

Motions
Non normative KSR = 0TR /
UT

inspection r TSR
KER = DT / OTR
KD = UT / DT

Non value added

Estimated waste in the cell Estimated number of hours
characteristic of the
process design

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 Which standard times in automated assembly?

Plant Operating Time Reference : POTR

Expected planned
down time
KSR = SPTR / POTR

Scheduled production time Reference : SPTR

Expected
KER = UT / SPTR unplanned
down time

Up time
Expected
rate
deviation + Staff Utilization Rate
Running time SURR = TSR / POTR
TSR = Total labor time expected
Expected
non
quality

Useful time : UT Estimated waste for the forecasted period

quantity good products / theoretical rate

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Which information for engineers & MRP ?

3
2

Manual process 1
Example: 5 stations

Engineering routing data 4

5
SAP routing data
Product A – Cell level
Product A - Cell level
UT KD DT
Operation # 1 18 0.9 20 UT = 101
Operation # 2 20 0.95 21
Operation # 3 23 0.8 28.7 KD = 0.86
Operation # 4 21 0.8 26.2
Operation # 5 19 0.9 21.1 KER = 0.80
101 sec. Total 117
KSR = 0.92
Cell level KER = 0.8 OTR = 146,25

Sector to cell level KSR = 0.92 TSR = 158.9 - To produce 800 products we will need 32.5 labor hours
- If 4 operators are working on the cell 8 hours / day, the cell
Efficiency expected IE = 0.63 operating time will be of 1 day
-2.8 hours of support functions will be required

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 Which information for engineers & MRP ?

Automated process
Example: equipment 1 Bottleneck = 300 pcs / hr

Engineering routing data

Product B – Cell level

SAP routing data
Output
Theoretical optimal rate = 300 pieces per hour Product B - Cell level
(without deviation & stoppage)
UT = 12
Useful time = 12 seconds / piece
SURR = 2.5 KER = 0.85
(An average of
Equipment efficiency KER = 0.85 2.5 operators are required
KSR = 0.92
to run the equipment)
Support coefficient KSR = 0.92

KER & KSR are coefficients used in SAP to forecast the workload - To produce 10 000 pieces we will need the machine to run 39,2 hours
KER: forecast coefficient similar to OEE effectiveness measured - We should expect 3.4 hours for planned down time
KSR: expected planned down time coefficient - 98 hours of machine operators and support functions will be required

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How to control the manufacturing efficiency ?

3
2

1
Manual process
Example: 5 stations
4

5
Short Interval Management meeting
SAP
Product A – Cell level
Product A - Cell level
Total expected DT = 26 hours
Total UT expected = 22.4 hrs
Total time spent OT = 35 hours
Total Time Spent = 38 hrs
Total time sup. funct. = 3 hours
IE = 0.59
Quantity produced = 800

- Total waste = 15.6 hrs

Cell level KE = DT/OT = 0.74 - 3.6 hrs due to process design
Main causes of waste - 9 hrs due to current issues
- 3 hrs support function

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 How to control the manufacturing efficiency ?

Automated process
Example 1 machine 1

Short Interval Management meeting

Product B – Cell level

SAP
Schedule Production Time = 42 hrs
Useful Time = 33.3 hrs Product B - Cell level

OEE = UT / SPT = 0.79 Useful Time = 33.3

hrs
Main causes of waste Plant Operating Time = 45
hrs
SURR = 2.5 (Plant Operating Time recorded for the
machine having the longest Operating
SUR = 3 Time)

- Total waste = 11.7 hrs

- 3 hrs due to planned down time
- 8.7 hrs due to current issues NEE = UT / POT = 0.74
(Non Quality, Rate deviation, Unplanned downtime)

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Which one to choose when the processes are

mixed in a cell ?

IE & KE NEE & OEE

When: When:

-The output is mainly the result of -The output is mainly the result
the number of DVC hours worked. of the equipment running hours.

-We want to control the labor -We want to control the

efficiency. equipment efficiency.
(cyclic and frequential NAV, ( Non quality, Rate deviation,
Activity, out of process, Non unplanned and planned down
quality, Uncertainties) time)

SUR:

- To control the number of DVC

hours needed to run the
equipment.

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 Practice – Efficiency & coefficients calculation for
manual assembly
Efficiency
UT = 9,1 UT = 9,5 calculation
re KD = 0,81 KD = 0,72
Da
T & K by 800 800
U en g
rin
giv inee ent 5 6 1 - Calculate DT & KD for the cell
n g tm
e r
pa
de
UT KD DT
UT = 8,5 4
1 7,5 0,9
KD = 0,84
2 8 0,94
Current situation; tracking sheet 3 7,4 0,86
Shift = 8 hours
1600

4 8,5 0,84
N°of operators = 4
Quantity produced = 1440 pcs
5 9,1 0,81
Support function = 5 hours 6 9,5 0,72
UT = 7,4
KD = 0,86 3
2 – Are the stations well balanced &
what about the operations cycle times
2 1 according to LADM prescription ?
800 800

UT = 8 UT = 7,5 ………………………………………..
KD = 0,94 KD = 0,9 ………………………………………..
…………………………………………

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Practice – Efficiency & coefficients calculation for

manual assembly
SAP
Efficiency coefficient
calculation & planning

4 – Planning
3 - Calculate the efficiency of the cell
Customer forecast / month = 40 000 / month
Working hours = 4 x 8 Cell efficiency KE is expected to improve of 12%
Quantity produced Qty The cell could run 20 days / month
No reduction in support functions is expected
Total UT Hrs UT
KD= UT / DT KD -How many operators / shifts to put out the
Total DT Hrs DT quantity
Total OT Hrs OT expected in a month?
KE= DT / OT KE …………………………………………………………….
Total TS Hrs TS …………………………………………………………….
KS=OT / TS KS -How many support functions hours expected?
…………………..
IE = UT / TS UT KD KER KSR

OTR TSR

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 Practice – Efficiency & coefficients calculation for
automated assembly
Rate = 188/hr Rate = 185/hr Efficiency
calculation

1 – Define the theoretical rate = …..

Rate 5 6
= 190/hr 4 2 – Calculate the efficiency coefficients
Tracking sheet
Machine running time = 8 hours Quantity
Quantity produced = 1100 pieces UT secondes
Planned down time = 1 hours
Operator = 1 machine setter Total UT hrs
Water spider = 4 hours Total SPT hrs
Rate 3 OEE
= 184/hr 2 1 Total POT hrs
NEE
3 – Calculate the Staff Utilization Rate
SUR = ………
Rate = 180/hr Rate = 192/hr

4 – Define the reference coefficient & explain your decision:

KER = ………….. when no improvement expected
SAP coefficient definition KSR = ………….. when 10 hrs maintenance / 50 hrs running
SURR = ………… when 10 hrs of machine setter & 4 hrs of
water-spider are needed when the machine runs 20 hrs

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Answer

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 Practice – Efficiency & coefficients calculation for
manual assembly
1 - Calculate DT & KD for the cell 1 – DT & KD calculation

UT KD DT UT KD DT

1 7,5 0,9 1 7,5 0,9 8,33

2 8 0,94 2 8 0,94 8,51

3 7,4 0,86 3 7,4 0,86 8,60

4 8,5 0,84 4 8,5 0,84 10,12

5 9,1 0,81 5 9,1 0,81 11,23

6 9,5 0,72 6 9,5 0,72 13,19
50 0,83 60,00

2 – Are the stations well balanced &

2 – Work station balancing & Cycle time / LADM
what about the operations cycle times
8,33 < Operation cycle time < 13,19
according to LADM prescription ?

………………………………………..
………………………………………..
…………………………………………
Unbalancing
between the lower
and higher 15 s < Cycle Time > 60 s
operation cycle (42 Dmh ) (166 Dmh )
time does not
exceed 20%

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Practice – Efficiency & coefficients calculation for

manual assembly SAP
Efficiency coefficient
calculation & planning
4 – Planning

3 - Calculate the efficiency of the cell Workload per month and shifts forecasted:

Working hours = 4 x 8 - Number of hours / month forecasted:

Quantity produced 1440 Qty (100 000 x 28.7)/3600= 797.2 hrs / month
- Number of hours / day required if
UT=(1440 x 50)/3600 20 Hrs UT
the demand per day can be averaged:
KD= UT / DT 0,83 KD 797.2 / 20 = 39.8 hrs / day
DT=20 / 0,83 24 Hrs DT
Example of workshop organization (8 hrs/shift):
KE= 24 / 32 0,75 KE
OT= DT / KE 32 Hrs OT 1 shift of 3 operators = 24 hrs / day / 20 days
1 shift of 2 operators = 16 hrs / day / 20 days
TS=32 + 5 37 Hrs TS Total = 40 hrs / day / 20 days
KS=32 / 37 0,86 KS OTR = 800 hrs / month
IE = UT / TS 0,54 Or

1 shift of 4 operators = 32 hrs / day / 20 days

1 shift of 4 operators = 32 hrs / day / 5 days

KER=0.84
KE=0.75 improve of 12%

OTR = 800 hrs / month
UT KD KER KSR
20 0.83 0.84 0.86 Number of support functions hours:
OTR TSR
28,7 33,4 TSR = OTR / KSR = 800 / 0,86 = 930
N°of support function hours = 930-797 = 133

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 Practice – Efficiency & coefficients calculation for
automated assembly
1 – Theoretical machine rate: 180 pcs / hr
“The theoretical rate of the production line is the theoretical rate of the bottleneck machine”
Quantity 1100 SUR=TS/POT 1,54
UT 20 secondes TS = 9 + 1 + 4 = 14 hrs
Total UT 6,11 hrs POT = 9,11 hrs
Total SPT 8 hrs
OEE 0,76
Total POT 9,11 hrs
NEE 0,67
3 – Reference coefficients, example:

UT = 20 second / piece
KER = OEE = 0.76, when we don’t expect any improvement
(if any improvement or deterioration are forecasted KER ≠ OEE)

SPTR = UT/KER = 26,3 seconds / piece

KSR = 0.83, when the planned down time for maintenance is of 10 hours
when the machine runs 50 hours, KSR = SPTR/POTR = 50 / 60 = 0.83)
POTR = SPTR/KSR = 31.7 seconds/piece
The machine cannot be used for any other utilization during this time

SURR = 0,7, if we need 10 hours of machine setter and 4 hours of water spider
when the machine runs 20 hours (SURR = 14 / 20 = 0,7)

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