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Procedia CIRP 57 (2016) 607 – 612

49th CIRP Conference on Manufacturing Systems (CIRP-CMS 2016)

Impact analyses of lean production systems


U. Dombrowski, D. Ebentreich*, P. Krenkel
Institute for Advanced Industrial Management
* Corresponding author. Tel.: +49 531 391 2722; fax: +49 531 391 8237. E-mail address: d.ebentreich@tu-bs.de

Abstract

Today's business conditions are characterized by increased competition. Therefore, enterprises have to cope with shorter product life
cycles, higher product complexity and more product variants. The reaction of many enterprises is to implement lean production
systems. In the past, methods of Lean Production Systems (LPS) have been used to identify waste in production and product
development processes. Lean offers an approach to eliminate waste and increase customer value in all processes.
The selection of the methods contained in LPS can be individually adapted to the respective requirements and conditions of the
corresponding enterprise. Therefore, the identification of the necessary methods is an individual decision for each LPS. The
consideration of the methods effects within the socio-technical system of a LPS is crucial because the effects of the different LPS
methods provide important information for decision support. Thus, the paper describes the identification of interdependencies and
effects in the LPS using System Dynamics. For this purpose, the modeling process of the method SMED is considered as an example. As
a result, the interdependencies of the methods are identified and the methods with the amount of connections can be determined.

© 2016 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
© 2015 The Authors. Published by Elsevier B.V.
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of Scientific committee of the 49th CIRP Conference on Manufacturing Systems (CIRP-CMS 2016).
Peer-review under responsibility of the scientific committee of the 49th CIRP Conference on Manufacturing Systems

Keywords: Lean Production Systems; System Dynamics, SMED

1. Introduction modification if needed. It is now known, that the isolated


use of methods, which was practiced in the early
Exposed to the global competitive pressure of beginning of adaption of TPS methods, does not lead to the
continuously changing market conditions, more and more desired increase in efficiency [3] and therefore it is
enterprises face the challenge to lower the costs of necessary to include technical, organizational, and human
production processes. At the same time, an increase of aspects. Specifically, cultural components, like philosophy
requirements concerning flexibility, variant diversity, are important for the success of LPS. The precise proof of
complexity of logistics, transparency and short delivery success and with that the value of LPS could until now
time along with a customer focus of the organization of only be given by several practical examples. A detailed
production occurs. [1] Enterprises increasingly encounter consideration of interdependencies of single methods in a
these challenges by designing and introducing individual, complex and dynamic system of an enterprise can be
so called lean production system (LPS), which extension modeled and simulated with system dynamics. For this
started in the automotive industry. On the basis of the purpose, the application of system dynamics for a
Toyota Production System, LPS is a specific, methodic qualitative and quantitative analysis of interdependencies
system of rules for an individual, extensive, and of the method Single-Minute Exchange of Die (SMED) [3]
comprehensive formation of business processes. [2] LPS in the field of LPS will be used for an example in the
has an open structure which enables an individual following.
selection and alignment of methods according to the needs
and circumstances within the specific enterprise. The use
of methods needs a continuous review of efficiency and a

2212-8271 © 2016 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of the scientific committee of the 49th CIRP Conference on Manufacturing Systems
doi:10.1016/j.procir.2016.11.105
608 U. Dombrowski et al. / Procedia CIRP 57 (2016) 607 – 612

2. Lean Production Systems Zäh et al. work is based on a literature research by working
out the interrelationships and interdependencies of lean
According to VDI 2870, a LPS is structured into the methods by Ohno, Shingo and Takeda. Based on this, they
hierarchic elements goals, business processes, formal have created a system dynamics model for deriving efficient
principles, methods and tools. Goals represent the highest implementation strategies for lean methods. [6], [7]
level and are usually divided into the dimensions quality, Manotas DUQUE ET AL. have developed another
costs, and time within the considered process of order approach built on the previous two, which illustrates the
transaction. They describe the default for all business relationship between lean methods and the result, which
processes that are supposed to be structured process- follows out of them. The corporate objectives with respect to
oriented. Underneath, the formal principles form the the lean methods are clustered similar to the approach of
thematic frame for the methods and tools, which Sanchez and Perez, in the five categories avoidance of waste,
represent the executing part of the production process. [2] continuous improvement, continuous flow after the pull
Based on this basic structure of all LPS the methods and principle, multifunctional teams and information systems.
tools will be customized enterprise-specific with regard to Each category is further described by metrics. For example
the content. [1] The classification of methods and tools the continuous flow after the pull principle is described by the
follows VDI 2870 and leads to the eight principles shown metrics of the lot size or the lead time. The presentation of the
in figure 1. effects of lean methods to the metrics takes place in a positive
or negative notation. [8]
The eight principles of LPS
according to the VDI 2870
Quantitative approaches
The approach of Lean accounting under Maskell et al. tries
1 2 3 4 5 6 7 to describe the change in accounting with a view to present a
management by objectives
employee orientation and
continuous improvement

lean company caused through the introduction of LPS


zero defects principle

visual management
standardisation

methods. Because of the difficulty measuring the short term


flow principle

pull principle

process

financial success the tool "Box Score" was developed. The


tool is based on a model which includes actual and financial
effects. With the comparison of the actual with the future
(after the introduction of the Lean method) and the long-term
targets, it is possible to clarify the degree of target
achievement. [9]
8 Sobczyk et al. have developed the approach of Value
avoidance of waste
Stream Cost Map. The basic idea is to extend the method of
Value Stream Mapping (Value Stream Map) by selected
Fig. 1. LPS Principles [2]
modules which describes explicit ongoing the state of the
production system. The performance is evaluated on the
3. Individual approaches financial impact of changes. The module balance sheet- and
inventory valuation and resources are complemented by a
The interdependencies between methods in a LPS have fifth module which leaves scope for more individual metrics.
been examined by various authors in individual approaches. All types of costs, which can be assigned to the single or
These approaches and their respective priorities are displayed multiple value streams (except material costs), must be
in Table 1. They can be divided into the categories of regarded as period costs. The module of the balance sheet-
qualitative, quantitative, simulation-based and graphical and inventory valuation contains statements about the value of
approaches. the inventory, income, cost of sales, the total cost and the
proceeds. The module resources includes beside the use of
Qualitative approaches company resources, the use of labour measured in units of
Karlsson et al. has developed a model to assess the change, time and is also divided into the six components production,
which is caused by the implementation of lean methods. For overproduction, set-up, stop, failure and inactivity. Based on
this, key figures such as, productivity, quality, lead time or this data, combined with the module costs, a statement about
costs are examined. The effects are measured based on the cost of waste can be made. [10]
defined factors. For each considered index a positive or The method of Lean cost management, which was
negative change is defined. [4] developed at the Lean Management Institute in Aachen is
Based on the model of Karlsson et al. a checklist was presented by Feldmann. It is a method that tries to make
developed by Sanchez et al. which also examines the change potentials and successes of implementing lean methods visible
through the implementation of lean methods. The total of 36 by complementing the usual cost allocation sheet by two
indicators of the checklist are clustered in the six groups non- tools. At first the values of settlement that divides the costs
value added activities, continuous improvement, into overcapacity, inefficiency and necessary wastage.
multifunctional teams, JIT production and supply, supplier Secondly, the value cockpit gets visible, which makes non-
integration and flexible information systems. The result of the monetary effects and successes, such as delivery capability or
checklist expresses the changes of the respective indicators in lead time transparent. The consequences of the use of lean
a positive or negative direction. [5]
U. Dombrowski et al. / Procedia CIRP 57 (2016) 607 – 612 609

methods are illustrated by the cost reduction by avoiding made, which measures changes in optimal impact on Lean
waste. [11] metrics. [15]
Jondral developed a methodology for simulation-based
Simulation-Based Approaches optimization and economic evaluation of the efficiency
An approach for simulation-based benefits determining of improvement of production with lean methods. The
the use of Lean methods in the assembly has been developed methodology is divided into three phases. In the first phase,
by Detty et al. It is based on a discrete event-driven all data are collected for the specification of the production
simulation that compares the status quo of the system with the system and are selected by a Lean check appropriate method.
system, in which a lean method is used. Through the In the second phase the simulation and optimization model is
possibilities of simulation, a direct comparison of the systems build. The model delivers a comparison of key factors for a
can be realized, which is not possible under real conditions. It monetary valuation of the LPS methods. This provides
also contains the influence of warehousing, inventory decision makers the opportunity to analyze the realization of
management, transportation and production control. By the methods and there achievable effects to minimize the business
simulation key indicators of the systems, such as the average risk. [16]
lead time, inventory quantity, the utilization ratio and other
can be determined. The comparison of these key indicators Graphical Approaches
delivers a statement about the success of the lean methods. Rivera introduces the approach of creating a cost-time
[12] profile to show the effects of lean methods. For this, the
Abdulmalek et al. tracks a similar goal with the simulation- temporal data about the production process with all the
based comparison of the simulation-based models before and activities, delays, material approvals and the relevant costs
after the implementation of a lean method. For this purpose have to be present. Based on this data basis, the cost can be
they first created a value stream analysis, which displays the determined per unit of time and there accumulated history can
waist by showing optimization needs. On this basis, a be presented graphically. The area under the curve represents
selection of appropriate Lean methods is made. Out of this a the cost-time-investment. This combines the evaluation
value stream map of the new potential production system is criteria of time and costs and highlights a reduction lead time
created. Based on these data a simulation model can be with constant total costs. The smaller the area, the smaller the
created, which also includes uncertain and dynamic aspects of cost-time investment. The direct comparison of the situation
the production system. A quantification of the success shows before and after the introduction of Lean methods in a chart,
up by comparing the models before and after the introduction. delivers a statement about the advantages of the used method.
[13] [17]
Peter describes a simulation-based method to evaluate and
optimize the effects of lean methods on the basis of quantified Table 1. Overview about the previous approaches for creating efficiency
interdependencies in small series production. In the first step a evidence
realistic simulation is created. With the aid of a qualitative criteria

Both positive and negative

Consideration of methods
Use of System dynamics

Comparison of complete

representation of the interdependencies of the individual lean


Justification of relations

Consideration of LPS-
relationships between
Consideration of the

individual elements

methods, the methods are selected and integrated into the

impact relations
concepts
model, which are conducive for the corporate goals. Through

principles

and tools
systems

a sensitivity analysis the effect of each method is quantified to


the targets. Through these potentials of the current system Qualitative approaches
production system can be identified. Finally, by using 1. Karlsson; Ählström, 1996 [4]
2.Sanchez; Perez, 2001 [5]
optimization software the effect of the combinations of 3.Zäh; Aull, 2006 [6]
various lean methods can be examined and evaluated with 4.Aull, 2013 [7]
5. Manotas; Rivera, 2007 [8]
respect to the target function. [14] Quantitative approaches
6. Maskell; Baggaley, 2004 [9]
One approach for simulation-based development and 7. Sobczyk; Koch, 2008 [10]
evaluation of production systems by using Lean metrics is 8. Feldmann, 2009 [11]
Simulation-Based Approaches
introduced by Al-Aomar. Lean metrics such as productivity, 9. Detty; Yingling, 2000 [12]
lead time or circulating stocks are helping the description of 10. Abdulmale; Rajgopal, 2007
[13]
the production system and are forming the basis for the 11. Peter, 2011 [14]
12. Al-Aomar, 2010 [15]
decision of this approach. In consideration of the influence of 13. Jondral, 2013 [16]
dynamic and stochastic structures, the target production Graphical Approaches
14. Rivera, 2006 [17]
system is modeled under the use of discrete event-driven
legend: 2 contemplation 0 partly contemplation
simulation. Building on this basis, the use of various lean
Previous approaches to create efficiency evidence appear
methods can be performed to identify the specific Lean
that only the method System Dynamics by Hardy and Aull
metrics. Based on defined target functions as a minimum
has been used. It shows that the methodology is
circulating stocks or a profit function, which also includes
fundamentally suitable for the modeling of methods and tools
inventory costs in addition to the revenues, the simulated
of lean production systems. Further, many of the approaches
annealing method is used. Through the interactive cooperation
carry out the comparison of entire systems without examining
with the simulation model it is possible to search for the
the impact of lean methods among themselves. Therefore,
optimal balance of lean metrics. Finally, a statement can be
only a few reasons for the effects between different methods
610 U. Dombrowski et al. / Procedia CIRP 57 (2016) 607 – 612

are presented. Here again, only Zäh and Aull identified some For rectified (+) relationships apply [22]:
influences by literature review and expert interviews. These
are exclusively positive because they only are described with x If X increases, then Y rises above a value, that Y would
one another supportive influences. Specific mathematical accept without modification of X.
relationships that would be necessary in the quantitative
modeling of LPS, have not been established yet. A necessary x If X decreases, then falls below a Y value, that Y would
data base for the development of mathematical relationships is accept without modification of X.
missing. For opposite (-) relationships apply [22]:

4. System Dynamics x If X increases, then decreases Y below a value, that Y


would accept without modification of X.
Originally developed as a control cycle-based model of
behavior of social structure, system dynamics now x If X decreases, then Y rises above a value, that Y would
represents a method to simulate and analyze different accept without modification of X.
systems. [18] The control cycle as basic element of the By formalizing the single interdependences by the basis
method describes a loop of cause and effect, in which of a system of equations, which is intended to reflect the
decisions are connected to actions, systems status and dynamic system behavior as realistically as possible, a
conditions and where information about the system status simulation model is created (Step 3). This step includes
is reported back to the point of decision. [19] Through the the preparation of equations and the definition of
use of the method, influences of business strategy and parameters and initial conditions. [20] On the basis of the
time lag of decisions can be overviewed as a whole. The verification the system of equations is checked for a
information network, that connects the single activities, function without errors. The validation of the simulation
generates the dynamic system behavior. [18] Because of model ensures that the results are sufficiently accurate to
the structural conditions of the system behavior, system describe the real system behavior (step 4). [23] Finally,
dynamics examines the interdependence between the verified and validated model can be used as a tool for
different components of the model. The aim is the analysis decision support (step 5). Because of the simulation
of the relationship between system structure and system character the model provides a fast, economical and safe
behavior of complex systems through simulation. [18] way to evaluate alternative. [24]
The process of modeling by Sterman views the
procedure as a 5 step circle of iteration (figure 2). The 5. Modeling the LPS
circle commences with the identification of the problem
(step 1), which includes the description of the problem The aim of using the method System Dynamics in the
and of the purpose of modeling to define the system environment of LPS is to analyze the influence of selected
boundaries and key variables. [21] parameters and elements on defined command variables.
Because of the individual combination of the methods
every LPS is different and adopted to the enterprise.
1. Identification of the
problem Therefore, it is the best way to develop individual models
which can be modular combined. In a second step, these
5. Using the model for
decision support
2. Model
2 M of
hypothesis
models can be grouped together by their mutual
interdependence. The method modeling is described
below by using the LPS-method Single-Minute Exchange of
Die (SMED). SMED is a method of lean production systems,
4. Validation
l ti
3. Simulation
model
with the goal to reduce the set-up time by optimizing the
set-up process. Therefore, the internal set-up times are
Possible relations of iterations converted into external set-up times. In addition, a
continuous optimization of both set-up process types is
Fig. 2. Modeling process by Sterman [20] striven to reduce the overall set-up time. [3]
If the problem identification describes a high existing
Because of the complexity, it is preferred to model set-up time, the influencing factors on the reduction of set-
multiple small sub models for each sub problem, rather up time need to be identified by the SMED method.
than one big model. The whole model can then be Therefore, the model must include elements, which
constructed through the connection of all the sub models. present the number of SMED applications and about the
[20] In the second step a model of hypothesis for each internal, external and overall set-up time. Important
identified problem is constructed (Step 2). The system´s influencing factors on the reduction of set-up times is the
basic structure will be analyzed to identify the relevant conversion of internal to external set-up time and the
cause and effect relations. The visualization then follows number of optimizations and their effectiveness. Based on
by a causal diagram, in which the relations are illustrated these considerations, a causal graph can be developed, in
by arrows. [21] The type of correlation is defined which the respective relationships between the elements
according to the following rule: are displayed. The effects of any relationship are to
U. Dombrowski et al. / Procedia CIRP 57 (2016) 607 – 612 611

characterize as either positive or negative. Based on the The internal set-up time (ܷܵܶ௜௡ ) added to the external
causal diagram, all variables are classified by their set-up time per procedure gives the set-up time (ܷܵܶ).
characters into state variables, flow size or auxiliary The control loop closes with the change of the set-up time.
variables. This flow chart is shown in Figure 3.
ܷܵܶ ൌ ܷܵܶ௘௫ ൅ ܷܵܶ௜௡ (4)

The verification of the created model is based on the


review of the stored equation system. Therefore, the
number of
optimizations
(external) effectiveness of optimization factor
the optimization
(external)
(external)
set-up time
relationships between the individual system elements are
verified on their units to their logical connection. The
external set-up
time per week
external
set-up time
review of the present system of equations leads to the
conclusion that there are no incorrect combinations.
Optimization
of the external
target set-up time
The validation of the model is based on an analysis of
number of set-up
the system behaviour with different parameters.
conversion factor
conversion from processes
internal/external
internal to external

Therefore, the parameter number of optimizations


set-up time
realized SMED number of
SMED Workshops optimizations

(external), the number of optimizations (internal), the


Workshops (internal)

internal set-up internal

optimization
time per week set-up time
optimization factor (external) and the optimization factor
(internal) were increased by 20 % and decreased by 20 %
of the internal
set-up time

as compared to the initial situation (trend scenario). The


effectiveness of optimization factor
the optimization (internal)
(internal)
results for the average set-up time and the number of
realized SMED workshops are illustrated in Fig. 4.
Fig. 3. Model of the SMED method
a b

In the following step, the model was quantified by a


Minutes/Set-up process Set-up time Realized SMED Workshops
Workshops
200 11

formal description of all effect relationships. The resulting


180 10
160 9
140 8

system of equations should depict the dynamic system 120


100
7
6

behavior of a real system as closely as possible. An


5
80
4
60 3

exemplary formalization of relations effect is described by


40 2
20 1
0 0

the red marked loop in Figure 3. The rate variable SMED 0 1 2


Trend scenario
3 4 5 6 7 8 9 10 11
Week
12 0 1 2
Trend scenario
3 4 5 6 7 8 9 10 11
Week
12

Workshops (ܹܵௌொ஽ ) describes the temporal variation of


- 20% - 20%
+ 20% + 20%

the number of SMED applications. It results from the


comparison of the set-up time (SUT) with the target time Fig. 4. Simulation results (a) Set-up time (b) Realized SMED Workshops
(TT). A positive difference results in the need for action to
carry out a SMED workshop: An increase of the parameter values number of
optimizations of internal and external set-up procedures
ͳǣܷܵܶ െ ܶܶ ൐ Ͳ as well as the external and internal optimization factors
ܹܵௌொ஽ ቄ (1)
Ͳǣܷܵܶ െ ܶܶ ൑ Ͳ shows in the results, that the simulated system behaviour
decreases the average set-up time (+ 20 %) compared to
The optimization of the external set-up time (ୣ୶ ) is
the initial situation (trend scenario). The third curve (- 20
also a rate variable. The conversion from internal to
%) shows a slowly declining average setup time reduction
external set-up time ( ୗ୙୘೔೙ିௌ௎்೐ೣ ) counteracts the
in the mentioned parameters. This change of system
reduction in the external set-up time by the product of
behavior corresponds to the expectations of the real
number of optimizations (ܱ௘௫ ) and the effectiveness of
system behavior because the four varied parameters have
optimizations (‫ܧ‬௘௫ ). The change of the external set-up
a significantly influence on the effectiveness of the
time arises in the present model out of the context:
implementation of an SMED method. In addition, the
number of SMED workshops is displayed over time in Fig.
ܱܷܵܶ௘௫ ൌ ܹܵௌொ஽ ൈ ሺௌ௎்೔೙ିௌ௎்೐ೣ െ ܱ௘௫ ൈ ‫ܧ‬௘௫ ሻ (2)
4. These results also describe the expected course by
changing the parameters. Increasing the parameter
The Division of the external set-up time per week describes an increase in effectiveness, because of the
(ܷܹܵܶ௘௫ ) with the number of set-up procedures (ܷܵܲ) smaller number of SMED workshops to reach the same
gives the external set-up time per procedure (ܷܵܶ௘௫ ). goals (+ 20 %). In the opposite the necessary number of
ܷܵܶ௘௫ ൌ
ௌ௎்ௐ೐ೣ
(3) SMED workshops increases with a decrease in the
ௌ௎௉ parameter (- 20 %) compared to the trend scenario.
612 U. Dombrowski et al. / Procedia CIRP 57 (2016) 607 – 612

Table 2. Development of the set-up time with small models of methods towards linking them to one
another, to eventually map the dynamics of a LPS.
Average set –up time [min/set-up process]
Time[Weeks] References
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