Airplane Game

Training
Objectives of the session

• To describe what Lean is and the key elements

• To explain the history behind Lean
• To introduce the approach to operations transformation
• To experiment through the airplane game the basic lean
tools

1
Content

The history of Lean

approach to operations transformation

Airplane game

2
Henry Ford and Frederick Taylor developed mass-production
concept over 25 years

Ford
Ford builds F W Taylor Ford reach
builds his the first developed Ford builds 2.1 million
1st car in 1st car – model Scientific the first vehicles/ Ford’s
the UK model “A” “T” Management moving line year decline starts
1894 1903 1908 -1911 1913 1923 1930

Craft
Mass Production
production

3
There are however several pitfalls of mass production

Mass Production companies ran into problems:

• Many companies focused on individual process
productivity, buying huge, rapid machinery which were
inflexible and required batch production
• It was good for “you can have any colour you want so
long as its black”!
• But the market was changing …

Craft
Mass Production
production

4
Toyota needed to achieve mass production efficiency at low
volumes, thus inventing TPS

• Japanese economy is depressed with low productivity

(MacArthur said Japan was 1/9th of USA)
• Toyota is a dwarf compared to American car
companies – export is impossible (In 1950, GM
3,656,000, Toyota 11,000)
• Taiichi Ohno, chief engineer at Toyota, invents an
alternative: the Toyota Production System (TPS)

Toyota Taiichi Ohno

founded Major strike starts TPS
1933 WW2 1946 1950

Lean Manufacturing

“Catch up with American

automobile industry in 3 years”
TPS expanded in its use during the next decades

• Toyota Motor Company achieved mass production

efficiency in a low volume, high diversity environment
• Toyota introduces TPS into the supply base
• Japanese companies in the US and Europe obtain 60
similar results to those in Asia. European and US years of
competitors realise their success is due to a development
systematic approach to operations

Transplants
Suppliers
TPS as a system
1933 WWII 1946 1950 1960 1970 1980 1990 2000

Lean Manufacturing

6
What is Lean?

Lean is a customer focused approach which

eliminates operational business problems (waste).

It ensures that customers receive their required level of quality, price and
delivery whilst maximizing an organization's competitive advantage and
shareholder value.

Shareholder / customer
requirement
Performance

Gap = business issue

Actual Performance

Time

7
Content

The history of Lean

Airplane game

8
Airplane simulation
Objectives
• To understand the opportunity to improve quality, cost, and delivery
performance in traditional manufacturing
• To gain an awareness of how JIT manufacturing differs from
traditional manufacturing
• To gain an appreciation of the following 'lean' terms:

ü Eight types of waste

ü Continuous flow processing

ü Takt time

ü Pull system

ü Levelling

10
Structure of simulation rounds

“Design “Set up new

improved Redesign round”
production Prepare
system”

Analyze
Run
“Measure “Simulate
performance and production”
identify issues”

11
Agenda

Time
Minute
• Case introduction 10

• Practice round 10

• Round 1 25

• Round 2 25

• Round 3 25

• Round 4 20

• Summary 5

2 hrs

12
 Context

• You are 1 of 7 shop-floor employees for a company that manufactures aircrafts

• Your company manufactures 2 products:
Civil airplane Military airplane

• The company is currently unable to deliver the quality, cost,

and delivery promises made to its customers
Manufacturing processes

• Every airplane is made from ¼ sheet of A4 or letter paper

• Both variants are made in the same way except the military planes require
stealth protection at the start of production

Operator Process description Military Civil

1 Apply stealth protection ü O
2 Cut sheet into quarters ü ü
3 Assemble: folds a-e ü ü
4 Assemble: folds f-h ü ü
5 Attach logo, then check dimensions ü ü
6 Flight test ü ü
7 Material handler ü ü

14
Airplane machining steps

Operator 1
(Military only)

Stealth Stealth Stealth Stealth

Stealth Stealth Stealth Stealth Stealth Stealth

Stealth Stealth Stealth Stealth Stealth Stealth

Stealth Stealth Stealth Stealth

1 A4 sheet = 4 planes

15
Airplane machining steps

Operator 2

Stealth Stealth Stealth Stealth

Stealth Stealth Stealth Stealth Stealth Stealth

Stealth Stealth Stealth Stealth Stealth Stealth

Stealth Stealth Stealth Stealth

1 A4 sheet = 4 planes

16
 Visible lines/edges
Airplane assembly steps Former shape before folding
Hidden lines/edges on back side
Folded areas

Operator 3
a. b. c. d. e.

Fold
line
1/2 sheet crease

17
 Visible lines/edges
Airplane assembly steps Former shape before folding
Hidden lines/edges on back side
Folded areas

Operator 4
f. g. h.
Turn
over
Turn
over

Fold down
both sides

18
Airplane finishing steps

Operator 5

B4
B4

Apply logo in
correct position Pre-flight inspection
on both sides and preparation

19
Airplane finishing steps

Operator 6

PA
SS
ED

Flight test

2m

20
Production support

Operator 7

Material handler
Agenda

Time
Minute
• Case introduction 10

• Practice round 10

• Round 1 25

• Round 2 25

• Round 3 25

• Round 4 20

• Summary 5

2 hrs

22
Agenda

Time
Minute
• Case introduction 10

• Practice round 10

• Round 1 25

• Round 2 25

• Round 3 25

• Round 4 20

• Summary 5

2 hrs

23
Round 1: Traditional manufacturing

7. Material
handler

1. Stealth 4. Assemble 2. Cut

Layout is
by process

2m

5. Decorate/ 3. Assemble 6. Flight test

inspect
• Every process has a batch size of 4
• Every batch must be packaged together with a paper clip, and the material
handler must be requested to deliver the complete batch to the next process
(material handler can only take one batch at a time)
• Every operator should work as fast as possible (piecework is in place)
• Customers demand 24 planes in 10 minutes; 12 civil + 12 military

24
Simulation round 1

Customers demand:
• 24 planes in 10 minutes
• 12 civil + 12 military

25
Tracking key performance metrics

Metric Units Goal

1. Quantity Number of good planes delivered

2. Quality Percent defects from total produced planes

3. Productivity Good planes delivered / number of employees

4. WIP Number of 1/4 paper sheets in production area

5. Lead time Average throughput time (minutes)*

6. Space Indexed against round 1 (=100%)

* Lead time (in shifts) = Quantity of unfinished goods / Parts delivered per shift

26
Round 1: Learning points

Performance How can performance be improved?

Quality • What went well?
• First pass yield
Cost • What were the most significant
• Productivity problems?
• Inventory • WIP levels
• Bottlenecks
Delivery
• % on time to customer • Waiting time
• Lead time • Worker stress/boredom
• Team interaction
• Defect rate

• What were the root causes of these

problems?

• How can these be resolved?

Value add and non-value add

Waste –
Non-value adding process
Processes that don’t add
value to the product Value adding
(e.g., waiting for material) processes

Processes that directly

add value to the product
(e.g. processing parts
on a machines)

Non-value adding but

necessary process
Processes that don’t add value but must be
done in the short term to accomplish value-
added work in the current system
(e.g. tool changes on machines)

Use the time only for what adds value in the eyes of the customer

28
The 8 types of waste – non-value adding processes
Typical learning points

• The layout is poor:

– does not support this product
– prevents people understanding the system
– hinders communication

• Operators often have nothing to do:

– batch manufacture
– waiting for material handler
– system empty at start of shift

• High levels of inventory tie up cash and create a quality

risk.

• Despite a lot of activity, the customer demand has not

been met.

• It is a frustrating system to work in

30
Continuous flow processing
The traditional layout and configuration of processes creates waste

Process Process Process

A B C

Continuous Flow Processing

is often the first step to removing
waste.

Process
ABC
Line design examples

Isolated Linear “U”-Shaped Parallel

A A A D

D
C
INV B B E
B E
B C C F

D
INV A F
C E

INV F

INV • Feedback • Clear production status • Reduced floor space

E • Reduced (short/full) • Good for pair-product
Inventory • Reduced floor space production
INV • Reduced floor • Increased operator flexibility
F space across steps

Batch Continuous Maximized Flexibility & Motion Economy

Production Flow

32
Agenda

Time
Minute
• Case introduction 10

• Practice round 10

• Round 1 25

• Round 2 25

• Round 3 25

• Round 4 20

• Summary 5

2 hrs

33
Round 2: Summary of design changes

• Improved layout (to optimize material flow)

• Continuous flow processing
• Batch size of 1 (from operator 3 onwards)
• No need for internal packaging
• Work is passed directly between operators
• In-station quality checks
• Material handler freed to study performance

Time = 10 minutes

Demand = 24 planes: 12 civil + 12 military

34
Simulation round 2 – Applying Flow

Customers demand:
• 24 planes in 10 minutes
• 12 civil + 12 military

35
Round 2: Learning points

Performance How can performance be improved?

Quality • What went well?
• First pass yield
• What were the most significant
Cost
• Productivity problems?
• Inventory • WIP levels
• Bottlenecks
Delivery
• % on time to customer • Waiting time
• Lead time • Worker stress/boredom
• Team interaction
• Defect rate

• What were the root causes of these

problems?

• How can these be resolved?

Analyzing the problem of waiting

Time per plane

Seconds

• Line is clearly
imbalanced

33 • What should be
done?

• How much work

15
13 12 13 should each person
have?
3

Operator 1* 2* 3 4 5 6

* Assume these processes must remain batch operation

37
Solving the problem of waiting

• The correct pace of production

Time per plane exactly achieves customer
Seconds demand in the production time
available

Takt time = 25s • For a balanced line with minimal

waste, each process must
complete one operation at this
pace: the takt time
33
• Takt time = Available time
Customer demand

15 = 10 minutes * 60 seconds
13 12 13
24 planes
3 = 25 seconds per plane
Operator 1* 2* 3 4 5 6

* Assume these processes must remain batch operation (clean room for station 1 - dirty process in 2)

38
 Solving the problem of waiting – Line balancing

• Work elements have to

be redistributed to
Waste due to isolated batch
processes* ensure every process
will produce at
customer driven pace
Time per plane
Takt time = 25s • Cross training will be
Seconds
necessary

• Productivity will be
improved

• Non value added time

24 24 focused at one
operation: time may be
16 usefully filled until
13 further productivity
12
improvements are
possible

Operator 1* 2* 3 4 5 6

* Assume these processes must remain batch operation

39
Analyzing opportunity for growth from 24 to 30 planes

Time per plane

Seconds Previous takt time = 25s • Company now has
immediate opportunity to
New takt time = 20s meet higher customer
demand of 30 planes with
existing trained workforce
• Benefits of flexible line can
be captured by reconfiguring
24 24 with more personnel

16 • Line needs to be rebalanced

13 12 at new takt time, and further
cross training will be
necessary

Operator 1* 2* 3 4 5 6

* Assume these processes must remain batch operation

Rebalanced line for growth in round 3

Time per plane

Seconds
New takt time = 20s

• Productivity will be further

improved because of greater
utilization of batch
processes

18 18 18
13 12
10

Operator 1* 2* 3 4 5 6
 Analyzing the problem of poor inventory control
Inventory: Civil
Typical results Inventory:
Military

1. 2. 3. 4. 5. 6.
Stealth Cut Fold Fold Decorate/ Test
inspect

• Inventory is generally high

• Inventory is not balanced
• How does each process know what to build next?
• Customer received what they were given

42
Solving the problem of poor inventory control –
Fill up pull system Inventory: Civil
Inventory:
Military

1. 2. 3. 4. 5.
Stealth Cut Fold Fold Fold,
decorate,
test Customer

• Customer dictates sequence and pace

• Each process makes to replenish "supermarket"
downstream
– Processes 3 to 5 'pull' from upstream supermarket in
order to replenish an empty space in the downstream
supermarket
– Batch processes 1 and 2 'pull' next batch of material from
upstream supermarket at designated signal
(e.g. whenever first component has been taken)

43
Agenda

Time
Minute
• Case introduction 10

• Practice round 10

• Round 1 25

• Round 2 25

• Round 3 25

• Round 4 20

• Summary 5

2 hrs
Round 3: Summary of design changes

• Line balanced to takt time

• Pull system implemented to control
inventory and to allow customer to set
pace
– Each station works only if demand
exists at the next downstream
– Demand is signaled by empty Kanban
space (WIP storage)
– Customer pulls 1 plane from last
process every 20 seconds (reduced
takt time)

Time = 10 minutes

Demand = 30 planes: 15 civil + 15 military

45
Simulation round 3 – Applying Takt time and Pull

Customers demand:
• 30 planes in 10 minutes
• 15 civil + 15 military

46
Round 3: Learning points

Performance How can performance be improved?

Quality • What went well?
• First pass yield
Cost • What were the most significant
• Productivity problems?
• Inventory • WIP levels
• Bottlenecks
Delivery
• % on time to customer • Waiting time
• Lead time • Worker stress/boredom
• Team interaction
• Defect rate

• What were the root causes of these

problems?

• How can these be resolved?

Analysis of production volume over time Civil
Military
Time
Minutes 1 5 10 1 5

Demand

If orders can be levelled (e.g. max 4 of one variant

Many (up to 15) planes of same variant may be at a time) sufficient time is always available for
required in a row; process 1 supermarket must immediate replenishment of process 1
stock inventory since it will be overburdened supermarket

48
Agenda

Time
Minute
• Case introduction 10

• Practice round 10

• Round 1 25

• Round 2 25

• Round 3 25

• Round 4 20

• Summary 5

2 hrs

49
Round 4: Summary of design changes

• Levelling allows inventory to be further

reduced
• Same flexible layout can be reconfigured for a
greater level of demand, which should result
in increased productivity

Time = 10 minutes

Demand = 30 planes alternating between civil

and military version
Simulation round 4 – Applying Levelling

Customers demand:
• 30 planes in 10 minutes
• 15 civil + 15 military
alternating

51
Round 4: Learning points

Performance How can performance be improved?

Quality • What went well?
• First pass yield
Cost • What were the most significant
• Productivity problems?
• Inventory • WIP levels
• Bottlenecks
Delivery
• % on time to customer • Waiting time
• Lead time • Worker stress/boredom
• Team interaction
• Defect rate

• What were the root causes of these

problems?

• How can these be resolved?

52
Agenda
Time
Minute
• Case introduction 10

• Practice round 10

• Round 1 25

• Round 2 25

• Round 3 25

• Round 4 20

• Summary 5

2 hrs

53
Review of objectives

• To gain an awareness of how JIT manufacturing differs

from traditional manufacturing
• To gain an appreciation of the following 'lean' terms:

ü Round 1 - Identifying the 8 types of waste

ü Round 2 – Applying Continuous Flow Processing

ü Round 3 – Applying Takt Time and Pull +

ü Round 4 – Applying production levelling

54
Appendix

55
Required material

• Projector and extension lead (for presentation)

• Flipchart & Markers (for recording KPIs and learning
points)

• A4 sheets of paper (for folding planes)

• Pens (operators 1 and 2)
• Ruler (operator 2)

• Scissors (operator 2)
• Stickers (operator 5)

• Paper clips (material handler)

• Stop watch

56
Role of attendees
Round 1 Round 2 Round 3 Round 4
Participant “Waste” “Flow” “Takt & Pull” “Levelling”

Participant 1 Operator 1 Operator 1 Operator 1 Operator 1

Participant 2 Operator 2 Operator 2 Operator 2 Operator 2

Participant 3 Operator 3 Operator 3 Operator 3 Operator 3

Participant 4 Operator 4 Operator 4 Operator 4 Operator 4

Participant 5 Operator 5 Operator 5 Operator 5 Operator 5

Participant 6 Operator 6 Operator 6 Finance manager Finance manager

(collect KPIs) (collect KPIs)

Participant 7 Material handler Industrial engineer Industrial engineer Industrial engineer

(measure cycles) (measure cycles) (measure cycles)

Participant 8 Customer Customer Customer Customer

Participant 9 Production mgr. Production mgr. Production mgr. Production mgr.

Participant 10 Waste observation 1- Waste observation 1- Waste observation 1- Waste observation 1-

4 4 4 4
Participant 11 Waste observation 5- Waste observation 5- Waste observation 5- Waste observation 5-
8 8 8 8
Role of Customer

• Round 1:
– Requires first 12 civil, then 12 military
– Is full of hope that he will receive his order on time in full
– Asks about the progress from time to time
– Is personally very disappointed if demand is not fulfilled

• Round 2:
– Requires first 12 civil, then 12 military
– Asks production manager if the improvements will be sufficient to fulfill his
demand
– Acknowledges any improvements compared to round 1 but threatens to move to
other supplier

• Round 3:
– Requires first 15 civil, then 15 military
– Is indicating Takt together with plant manager
– Acknowledges any improvements compared to round 2

• Round 4:
– Requires 1 civil, 1 military, 1 civil, 1 military, etc. according to takt
– Is very happy if eventually customer demand is fully met.
– Acknowledges tremendous improvements compared to round 1

58
Role of Production Manager

• Round 1:
– Demands as much as production as possible from every individual
operator
– Compares individual output between operators
– Threatens if operators do not meet targets

• Round 2:
– Demands quality products from every single operator
– Still demands large individual productivity

• Round 3:
– Demands adherence to pull system
– Is indicating Takt together with customer
– Acknowledges improvements and cheers up individuals

• Round 4:
– Demands discipline to pull system and levelling
– Celebrating team improvements

59
Takt time sheet - Round 3
Time Plane Type
0:20 1 Civil
0:40 2 Civil
1:00 3 Civil
1:20 4 Civil
1:40 5 Civil
2:00 6 Civil
2:20 7 Civil
2:40 8 Civil
3:00 9 Civil
3:20 10 Civil
3:40 11 Civil
4:00 12 Civil
4:20 13 Civil
4:40 14 Civil
5:00 15 Civil
5:20 16 Military
5:40 17 Military
6:00 18 Military
6:20 19 Military
6:40 20 Military
7:00 21 Military
7:20 22 Military
7:40 23 Military
8:00 24 Military
8:20 25 Military
8:40 26 Military
9:00 27 Military
9:20 28 Military
9:40 29 Military
10:00 30 Military
Takt time sheet - Round 4
Time Plane Type
0:20 1 Civil
0:40 2 Military
1:00 3 Civil
1:20 4 Military
1:40 5 Civil
2:00 6 Military
2:20 7 Civil
2:40 8 Military
3:00 9 Civil
3:20 10 Military
3:40 11 Civil
4:00 12 Military
4:20 13 Civil
4:40 14 Military
5:00 15 Civil
5:20 16 Military
5:40 17 Civil
6:00 18 Military
6:20 19 Civil
6:40 20 Military
7:00 21 Civil
7:20 22 Military
7:40 23 Civil
8:00 24 Military
8:20 25 Civil
8:40 26 Military
9:00 27 Civil
9:20 28 Military
9:40 29 Civil
10:00 30 Military
C M

62
Back-up slides