Lean Methods & Implementation / Leadership Strategy / Production Scheduling / Campaign Lot Sizing King • King THE THE PRODUCT WHEEL PRODUCT WHEEL HANDBOOK THE HANDBOOK CREATING BALANCED FLOW IN HIGH-MIX PROCESS OPERATIONS “Peter King continues to be a thought leader in the spread of advanced manufacturing practices throughout the process industries. His product wheel concepts and practices PRODUCT WHEEL are an excellent resource for plants with multiple products sharing the operating assets.” CREATING BALANCED FLOW IN HIGH-MIX —Ray Floyd, Shingo Prize-winning author of Liquid Lean and Member of IndustryWeek’s Manufacturing Hall of Fame PROCESS OPERATIONS “The authors have a gift for writing well, in a way that will keep the reader connected throughout this excellent work. It flows through the methodology in a well structured and logical way… definitely a must-read for any Lean practitioner.” —Henrique Fagundes, Senior Project Manager, DuPont “The product wheel is a true landmark in the management and organization of the workplace. All manufacturing operations searching for a way to organize and level the factory should A have this book.” Editorial Board, Target Magazine, Association for Manufacturing Excellence; —Cash Powell, Jr., B K A Lead Consultant, Center for Competitive Change, University of Dayton C I “A clearly written guide to designing and improving product wheels ... Pete and Jennifer J King take you through a logical step by step process without ever resorting to simplistic D B recipes ... Highly recommended!” G —Peter C. Compo, Director of Integrated Business Management, DuPont I F HANDBOOK E The Product Wheel (PW) design process has practical methods for finding the optimum C sequence, minimizing changeover costs, and freeing up useful capacity. As a testament to it’s efficacy, the DuPont™ Company and Exxon Mobil are just two of many companies that H have used the product wheel concept to achieve and sustain a competitive advantage. J H D Breaking down a fairly complex design process into manageable steps, The Product G Wheel Handbook: Creating Balanced Flow in High-Mix Process Operations walks readers through the steps of designing and implementing the PW technique. It includes K a case study and several examples of product wheels being used by successful F E manufacturing companies—including BG Products, Inc., DuPont, Dow Chemical, and Appleton. K15304 ISBN: 978-1-4665-5418-4 9 0 0 0 0 9 781466 554184 Peter L. King www.productivitypress.com Jennifer S. King THE PRODUCT WHEEL HANDBOOK CREATING BALANCED FLOW IN HIGH-MIX PROCESS OPERATIONS THE PRODUCT WHEEL HANDBOOK CREATING BALANCED FLOW IN HIGH-MIX PROCESS OPERATIONS Peter L. King Jennifer S. King Boca Raton London New York CRC Press is an imprint of the Taylor & Francis Group, an informa business A P R O D UCTIV I T Y PRE SS BOOK CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2013 by Taylor & Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Version Date: 20130102 International Standard Book Number-13: 978-1-4665-5419-1 (eBook - PDF) This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. 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Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the CRC Press Web site at http://www.crcpress.com Contents Acknowledgments ................................................................................... xi Introduction ..........................................................................................xiii Why Product Wheels? .....................................................................................xiii Process Industry Challenges ........................................................................... xiv Product Wheel Basics ...................................................................................... xv How This Book Is Organized ........................................................................ xvi About the Authors ................................................................................. xix 1 The Problem: Production Sequencing, Campaign Sizing, Production Leveling ........................................................................... 1 Challenges Facing Operations Managers—Production Leveling ...................... 1 Challenges Facing Operations Managers—Random Sequence or Regular Pattern? .................................................................................................. 2 Challenges Facing Operations Managers—Optimum Sequence ...................... 3 Challenges Facing Operations Managers—Optimum Cycle ............................. 4 The Insidious Nature of Changeovers ............................................................... 6 2 The Solution—Product Wheels .......................................................... 9 Product Wheels Defined .................................................................................... 9 Product Wheel Terminology .............................................................................. 9 Simultaneous Operating Modes ...................................................................... 13 Product Wheel Characteristics ..........................................................................14 Process Improvement Time ..............................................................................14 Benefits of Product Wheels ..............................................................................15 Product Wheel Applicability .............................................................................15 3 The Product Wheel Design and Implementation Process ................17 Product Wheel Design ......................................................................................17 Step 1: Begin with an up-to-date, reasonably accurate value stream map (VSM) .....................................................................................17 Step 2: Decide where to use wheels to schedule production ................ 18 Step 3: Analyze product demand volume and variability—identify candidates for make to order ................................................................... 18 Step 4: Determine the optimum sequence .............................................. 18 v © 2010 Taylor & Francis Group, LLC vi ◾ Contents Step 5: Analyze the factors influencing overall wheel time ................... 18 Step 6: Determine overall wheel time and wheel frequency for each product ........................................................................................19 Step 7: Distribute products across the wheel cycles—balance the wheel ...................................................................................................19 Step 8: Plot the wheel cycles ....................................................................19 Step 9: Calculate inventory requirements ................................................ 20 Step 10: Review with stakeholders .......................................................... 20 Step 11: Determine who “owns” (allocates) the PIT time ....................... 20 Step 12: Revise the scheduling process ................................................... 20 Product Wheel Implementation ....................................................................... 20 Step 13: Develop an implementation plan .............................................. 20 Step 14: Develop a contingency plan ...................................................... 21 Step 15: Get all inventories in balance .................................................... 21 Step 16: Put an auditing plan in place ..................................................... 21 Step 17: Put a plan in place to rebalance the wheel periodically .......... 21 Kaizen Events ................................................................................................... 22 Prerequisites for a Product Wheel ..................................................................