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Time Traps and Constraints

Lean Six Sigma


Fundamental Skills &
Knowledge
Constraint & Time Trap
Identification

LSS e-Learning
Curriculum under License from
Lean Six Sigma Australasia

91558NSW Vocational Graduate Certificate in Lean Six Sigma


Unit 7001A Apply Lean Six Sigma Fundamental Skills and Knowledge

Key Objectives

Learn the difference between a capacity constraint and a


time trap

Understand the tools to identify a capacity constraint


Takt Rate Analysis
Practice a Load Factor Report Analysis

Understand the tools to identify time traps

Workstation Turnover Time


Using a simple WTT Spreadsheet Analysis

91558NSW Graduate Certificate in Lean Six Sigma


Unit 7001A Apply Lean Six Sigma Fundamentals

Time Traps and Constraints

Lean Definitions

The following terms are used frequently to quantitatively describe the


output of a process and the critical process steps:

Capacity: The maximum amount of product (output) a process can deliver


(produce) over a continuous period of time

Takt Rate: The amount of product (output) required by the customers over
a continuous period of time

Time Trap: The process step that inserts the most delay time into a
process

Constraint: Any process step that is unable to produce at the exit rate
required to meet customer demand (internal or external Takt rate)

Workstation Turnover Time (WTT): The time it takes for all


products/services to pass through a workstation once in a processing cycle

What Is a Time Trap?

Time traps insert delay time into a process

Time traps can create long lead times, large


downstream inventories, large WIP,

Time traps are principally due to long setup times,


machine or human downtime, or quality problems

Time traps can change over time (monthly, weekly,


even daily) based upon product mixes or special causes
(new product introductions, special orders, etc.)

Time traps can be caused by physical problems (such as


process flow, personnel availability, part/supply
shortages, equipment availability, others)

Time traps can also be caused by non-physical problems


(such as procedures, morale, unsafe work environments,
lack of training, others)

There is ALWAYS a time trap in a process!

This is a
Time Trap!!

91558NSW Graduate Certificate in Lean Six Sigma


Unit 7001A Apply Lean Six Sigma Fundamentals

Time Traps and Constraints

What Is a Constraint?

Constraints limit the output capacity of the process


(sometimes called bottlenecks)

Constraints have less capacity than the prior or


subsequent steps/operations

Constraints are time traps that cannot meet


customer demand (a constraint is ALWAYS a time
trap, but a time trap may not be a constraint!)

Constraints can change over time (monthly, weekly,


even daily) based upon product mixes or special causes
(new product introductions, special orders, others)

This is a
Constraint!!

How Are Time Traps Created?

Poor process flow

Distance

Machine capacity

Safety concerns

People

Poor scheduling

Lack of parts

Product mix

Transportation methods (cranes, foot, etc)

Excessive WIP

Handoffs

Variability of the process

Large batch sizes

Stress

Operational deficiencies

Turnover

others

Setup
Scrap (low yield)
Downtime
Rework

91558NSW Graduate Certificate in Lean Six Sigma


Unit 7001A Apply Lean Six Sigma Fundamentals

Time Traps and Constraints

The Importance of Time Traps

The most limiting step of this process

Time

Time Trap

Exit
Rate
Activity

If we do not understand where the time trap exists, we may end


up focusing our project on the wrong process activity

Remember that the Time Trap governs the throughput

Time Trap Identification

With Constraint Identification, we are interested in


finding the operations or processes that will facilitate
meeting customer demand

With Time Trap Identification, we are interested in


finding the operation or process that will facilitate
improving process efficiencies and throughput

Time traps impact efficiencies by requiring more inventory,


more equipment, more people, more material, and more
time in order to meet customer demand

91558NSW Graduate Certificate in Lean Six Sigma


Unit 7001A Apply Lean Six Sigma Fundamentals

Time Traps and Constraints

Pareto Principle and Bottlenecks

Applying the Pareto Principle to time traps means that in most


environments, 80% of the inefficiency or delay is caused by 20%
of the steps in the process

Turning this around then states that making improvements to 80% of


the steps in the process has little to no impact on efficiency or speed

Therefore it is critical that our improvement projects are focused on


the time traps

The Importance of Constraints

This time trap is also a constraint


One Time Trap

Constraints

Time

Max. time to
meet customer
demand

Activity

Unless we attack the constraints, we will continue to be unable


to meet customer demand.

91558NSW Graduate Certificate in Lean Six Sigma


Unit 7001A Apply Lean Six Sigma Fundamentals

Time Traps and Constraints

Project Focus

Time Traps or Constraints


Time Traps

Focus on time trap identification if the goal of your project is to


improve efficiencies (in inventory, lead time, output rates, others)

Constraints

Focus on constraint identification if the goal of your project is to


increase capacity

We priority look at constraint identification first


since it impacts the customer satisfaction

Constraint Identification
Takt Rate Analysis

LSS e-Learning
Curriculum under License from
Lean Six Sigma Australasia

91558NSW Vocational Graduate Certificate in Lean Six Sigma


Unit 7001A Apply Lean Six Sigma Fundamental Skills and Knowledge

91558NSW Graduate Certificate in Lean Six Sigma


Unit 7001A Apply Lean Six Sigma Fundamentals

Time Traps and Constraints

Takt Time and Takt Rate


We use Takt Time when
describing the output of a
given step/task

We will use Takt Rate when


referring to Customer
Demand

Takt Time = Customer Demand


(stated in time per unit)

Takt Rate =Customer Demand


(stated in units per time)

It takes 10 seconds per unit

We can make 6 units per minute

Example: Takt Time = seconds/piece

Example: Takt Rate = pieces/second

Takt Time =

Production Time Available

Takt Rate =

Number of Units to Produce

Number of Units to Produce


Production Time Available

Note: Takt is German for metronome or musical beat

Example of
Takt Rate Analysis

Takt Rate = Customer Demand

Main Production Board: Operation 3

An excellent workstation visual


control tool used to help operators
maintain a customer rhythm to
throughput is a Takt Board

In this Takt Board example

the hourly Takt rate is pre-planned


to take into account shift activities
such as breaks, lunch and meetings

The customer daily demand is 450

Did Operation 3 meet Takt Rate?

Takt Rate =

Number of Units to Produce


Production Time Available

Constraint Identification
The Constraint is the operation or process
that produces below the Takt Rate

Yesterday:

443

Units

1.61 Units/ labor hr

Today:

445

Units

1.62 Units/ labor hr

Hour

Takt Rate

Actual

+- Diff

7-8 AM

60

53

-7

8-9 AM

60

59

-8

9-10 AM

45

48

-5

10-11AM

60

61

-4

11-12 PM

30

34

12-1 PM

60

59

-1

1-2 PM

60

58

-3

2-3 PM

45

44

-4

3-4 PM

30

29

-5

Totals

450

445

Comments
Down for 5 min

Skipped prodn meeting

Took late lunch

Step 1:

Write in the number of units produced and the units/hour from yesterday

Step 2:

Write in the number of units to produce and the units/hour goal for today,
confirm the takt rate for each hour (account for breaks and lunch)

Step 3:

Each hour, write in the number of units produced in the previous hour

Step 4:

Write in the cumulative difference between the scheduled units


produced and the actual units produced

Step 5:

Write in any comments (frame welder down, no glass) as a reason for


meeting or not meeting the takt rate.

91558NSW Graduate Certificate in Lean Six Sigma


Unit 7001A Apply Lean Six Sigma Fundamentals

Time Traps and Constraints

Aided exercise:
Constraint vs. Time Trap

Input

Operation
1

Operation
2

Operation
3

Operation
4

Task Time
=
30 sec/unit

Task Time
=
40 sec/unit

Task Time
=
45 sec/unit

Task Time
=
35 sec/unit

Output

Process Lead Time

Task Time above = The total amount of time needed to


accomplish the operation
1. Which operation is time trap?
2. If the takt rate is 75 units per hour, is there a constraint?
3. What if the customer is demanding 85 units per hour?

Aided exercise cont:


Constraint vs. Time Trap

We will aid you with this one but can you workout the math
conversion using the Takt Rate & Takt Time formulas?
1. One Time Trap

Time (secs)

45 -

30 sec 40 sec 45 sec 35 sec


-

20 -

Per
unit

Per
unit

Per
unit

Per
unit

Activity

50 -

3. Takt time
42 seconds

45 -

Time (secs)

50 40
35
30
25

3. Time Trap & Constraint


2. Max. Takt Time
to meet customer
demand is 48
seconds per unit

40
35
30
25

per unit
30 sec 40 sec 45 sec 35 sec
-

20 -

Per
unit

Per
unit

Per
unit

Per
unit

Activity

1. Which operation is time trap?


2. If the Takt Rate is 75 units per hour, is there a constraint?
3. What if the customer is demanding 85 units per hour?

91558NSW Graduate Certificate in Lean Six Sigma


Unit 7001A Apply Lean Six Sigma Fundamentals

Time Traps and Constraints

Constraint Exercise: Load Factor Analysis

Good Rhythms Co.

We are the owners of Good Rhythms Co and need to know the


following to maximize production capabilities.

The customer demand appears to be high compared to our production


abilities. What do you think?

1. What is the net operating time (hours per week)?


2. What is the factory Takt Rate (units/hour)?
3. What is the time trap in the process? What is its capacity (in units per
hour)?
4. Is the time trap a constraint (can it produce to the takt rate Yes/No)?
5. If an additional piece of equipment is purchased to increase capacity at
the time trap, what is the new capacity?

Constraint Exercise

The Process

Operation 1

This production process is a four


step operation

Operation 2

Operation 3

Ship

Operation 4

91558NSW Graduate Certificate in Lean Six Sigma


Unit 7001A Apply Lean Six Sigma Fundamentals

Time Traps and Constraints

Constraint Exercise

Basic Operating Data

The company has a customer demand of 16,000 units per


week.

The factory operates:

5 days per week

3 shifts per day


Each shift receives a 20 minute paid lunch

Each shift receives 2 x 10 minute paid breaks

Constraint Exercise

Operating Capacity
Operation

Capacity/Mach

# Machines

Operation 1

60 units/hr

Operation 2

25 units/hr

Operation 3

35 units/hr

Operation 4

80 units/hr

10

91558NSW Graduate Certificate in Lean Six Sigma


Unit 7001A Apply Lean Six Sigma Fundamentals

Time Traps and Constraints

Results Constraint Exercise

Load Factor Analysis

1. What is the net operating time (hours per week)?

__________________________________________

2. What is the factory takt rate (units/hour)?

__________________________________________

3. What is the capacity time trap in the process? What is its capacity (in units
per hour)?

__________________________________________

4. Is the time trap a constraint (does it take longer than the takt rate Yes/No)?

__________________________________________

5. If an additional piece of equipment is purchased to increase capacity at the


time trap, what is the new capacity?

__________________________________________

Constraint Exercise: Load Factor Analysis


Good Rhythms Co.

Complete the Load Factor Analysis Exercise


Show the numbers for each of the five questions
Illustrate the Load Factor Analysis with a Takt Rate bar graph

11

91558NSW Graduate Certificate in Lean Six Sigma


Unit 7001A Apply Lean Six Sigma Fundamentals

Time Traps and Constraints

Time Trap
Identification
Workstation Turnover Time (WTT)

LSS e-Learning
Curriculum under License from
Lean Six Sigma Australasia

91558NSW Vocational Graduate Certificate in Lean Six Sigma


Unit 7001A Apply Lean Six Sigma Fundamental Skills and Knowledge

Time Trap and Workstation Turnover Time

Capacity constraints can be found using Takt rate analysis, but how does one
identify a Time Trap in complex inefficient operations?

To determine the time traps in a process one must consider the different
operating parameters of both the workstations in the process and the products
flowing through the process

For example

how do setup times, processing times, and batch sizes affect individual
workstations?

We can use some fundamental analysis that relate these parameters in a term
called Workstation Turnover Time (which is comparable to inventory
turns), to calculate the time trap

12

91558NSW Graduate Certificate in Lean Six Sigma


Unit 7001A Apply Lean Six Sigma Fundamentals

Time Traps and Constraints

Definition of
Workstation Turnover Time (WTT)

WTT is the Workstation Turnover Time

the amount of time to setup and run all parts/products/services at a given


workstation once in a processing cycle

Formula

WTTk = [(Setup Time i ) + (Process Time i x Batch Size i )]

Where k = 1 to a number of workstations in the process


Where = The sum or addition of each block (parenthesis)
Where i = 1 to n part numbers routed across that workstation
We will develop this equation later in the program (to help us analytically
size batches), but it is important to understand in this application

To determine which workstation is the critical time trap, simply


calculate WTT for each workstation in the process

the station with the longest WTT is the critical time trap

Process Constraint Identification:

Understanding WTT

Scenario 1:

Workstation Z processes three parts: A, B, C


If the parts are run sequentially (one after another), then:
WTT for workstation Z is defined as:

Batch A
Setup A

Batch B

Process A Setup B

Batch C

Process B Setup C Process C

Batch A
Setup A

Process A Setup B

WTTZ

Scenario 2:

Setup A

Batch B
Process B Setup C

Batch C
Process C

WTTZ

Workstation Z processes three parts: A, B, C


The parts are not run sequentially (not one after another), then:
WTT for workstation Z is defined as:

Batch A

Batch B

Process A Setup B

Process
B

Batch A
Setup A Process A

Batch C
Setup C

Batch A

Process C Setup A

Process A Setup B

Batch B
Process B

WTTZ
WTT for workstation Z is the same in both scenarios

13

91558NSW Graduate Certificate in Lean Six Sigma


Unit 7001A Apply Lean Six Sigma Fundamentals

Time Traps and Constraints

Aided exercise:
Workstation Turnover Time Example

Use the data given below to solve for WTT= [(Setup Timei )+(Process Timei
x Batch Sizei)]

WTT = [(SetupA)+(Process TimeA x Batch SizeA)+(SetupB)+(Process TimeB x Batch SizeB)]

[(4 hrs)+(.01 hrs/unit x 1000 units) + (4 hrs) + (.01 hrs/unit x 1000 units)

WTT = [(4 hrs) + (10 hrs) + (4 hrs) + (10 hrs)]

Description
Setup A
Setup B
Process Time A
Process Time B
Batch Size A
Batch Size B
Demand A
Demand B
Available hours
WTT =

Value
4
4
0.01
0.01
1000
1000
35.71
35.71
40
??

WTT = 28 hrs

Product

Unit
hrs
hrs
hrs/unit
hrs/unit
units
units
units/hr
units/hr
hrs/week
hrs

Workstation

Product

Aided exercise cont:


WTT Example Explanation

Given the workstation data of setup time, process time, and batch
size, the WTT in this example is 28 hrs.

This 28 hour WTT is a reflection of the workstations inflexibility.


Because of the setup time and required batch size, this workstation
is injecting delay time into the process.

Calculating WTT for each workstation in the process allows us to


find the workstation that is injecting the most delay time. This
workstation is the critical Time Trap.

As mentioned, later we will learn how to analytically right batch


sizes given workstation data such as setup time, scrap, rework,
downtime, etc. As batch sizes are changed due these parameters,
WTT will change. So ultimately WTT is impacted by all of these
parameters as well.

14

91558NSW Graduate Certificate in Lean Six Sigma


Unit 7001A Apply Lean Six Sigma Fundamentals

Time Traps and Constraints

Key Learning

How to identify capacity constraints in a process

How to identify time traps in a process

Understand the tools used to determine constraints and


Time Traps
Takt Rate and Takt Time formulas
Load Factor Analysis
WTT Analysis

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LSS e-Learning
Curriculum under License from
Lean Six Sigma Australasia

91558NSW Vocational Graduate Certificate in Lean Six Sigma


Unit 7001A Apply Lean Six Sigma Fundamental Skills and Knowledge

15

91558NSW Graduate Certificate in Lean Six Sigma


Unit 7001A Apply Lean Six Sigma Fundamentals