Improving processes Recruitment Simulation part 2 Takt, Load Charting, and monuments

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Improving processes Recruitment Simulation
part 2 Takt, Load Charting, and monuments
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Objectives

• To consolidate Lean Thinking concepts, turning
  them into reality
• Do this by..
• Simulating a value creating business unit
• Using Lean Sigma tools concepts to design an
  optimum solution
• Running the solution to test the theory

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Process Simulation
This exercise simulates the recruitment process.
Each stage of the recruitment process is
represented by the application of dots to sheets.
This time the company requires a total of 40
candidates to be placed into positions over a 10
month period 20 Managers, 10 Directors and 10
VPs. The customer is your aligned business
department who will tell you exactly what
positions need to be filled each month.
The interview process is a monument, as before,
so is in a separate location. Also, the capacity
for interviewing is limited, to allow time for
each interviewee.
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Process Simulation

• The recruitment process has 5 sequential stages
• Job advertised
• Candidates screened
• Interview
• Offer made
• Candidate appointed

In the simulation, each minute will represent one
month, and you will receive notification for how
many vacancies are to be filled at the beginning
of each month. Depending on what vacancy is to
be filled, a different amount of work is required
for each step.
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Manager Recruitment
Candidate Appointed
Job Advertised
Candidates Screened
Interview
Offer Made
6
Director Recruitment
Candidate Appointed
Job Advertised
Candidates Screened
Interview
Offer Made
7
VP Recruitment
Candidate Appointed
Job Advertised
Candidates Screened
Interview
Offer Made
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Process Simulation
More information Based on historical data, the
average number of candidates recruited is 4 per
month (this could be any position) The maximum
number of any one role (VP, Dir or Mgr) that will
be recruited in a month is 4 - usually it will be
less. The maximum number of positions recruited
in any one month across all roles is 6. The
interviewing step is a monument, meaning it
must be carried out in a separate location (min
10 ft from other operations). A max of 4
interviews can take place each month, all of
which must be the same candidate profile (e.g.
all VPs), and all 4 are released en-masse at the
end of the month. Note To meet customer
demand, you will need to have candidates already
appointed ready to go.
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How exercise will run

• Monuments minute starts and ends with
  Facilitators minute.
• Run for 10 months (i.e. 10 mins, total of 40
  candidates)
• Customer requirements over 10 months will be-
• Managers 50 (20 positions)
• Directors/VPs 25 each (10 positions of each)
• Average Demand per month (AD) 4
• (AD for Mgr 2/month for VP/Dir 1/month)
• Max overall demand in any given month 6

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Expectations of analysis

• 7 cycle analysis
• Monument strategy
• Process flow
• Calculations-
• Takt time (load to 85 of this)
• Cycle times
• Safety factor/buffer
• Replenishment time
• Kanbans (see over)
• Load charts
• Pull system implemented

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Process Simulation

• Determine how you will design a LeanSigma process
  for recruiting different candidates .
• Balanced to Takt
• Minimal NVA
• Minimal variation
• Use Pull
• Minimum WIP
• Designed for flow
• Perform Process Observation
  
• Calculate Takt Time
• Determine required staffing
• Determine required inventory
• Design the physical process

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Bonus Multiplier

• 100
• Each Candidate recruited 1k
• WIP when audited - 0.2 (-80 per sheet)
• Late recruitment - 0.5 (-200)
• WIP (within 20 of start) - 5k (one-off)
• Cost of Poor Quality
• Aborted process (scrap) - 0.2 per sheet
• Wrong / inadequate candidate - 2 (- 800)
• People (HR recruiters) - 5 (- 2k) each

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Task 1 Determine Staffing

• Calculate the Takt time ( time available /
  average demand)
• Identify sequence of work elements
• Determine standard times for each work element
• - Multiple observations with different operators
  (Use 7 cycle analysis)
• Total up the work for each product
• Create a load chart for each product or
  process step
• - Load operators to approximately 80-85 of takt
• - Must be complete work elements
• Determine how to deal with demand changes for
  candidates
• - Decide if resources need reallocation between
  roles

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Tools you will need(in the order you will need
them)

• Process observation (7 cycle analysis)
• Cycle times
• Load charting
• Load balancing
• Replenishment times
• Kanbans (WIP) calculations
• Monument strategy (Bottleneck)
• Physical layout (flow, cells)

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Observation- Activity of The Operator
ONECYCLE

• Examples
• Walking to get parts
• Waiting for parts

• Human actions or motions are performed when
  producing products, these can be categorised as
• Value Creating
• Movement directly necessary for making
  products.
• Incidental Work
• Motions that operators must perform to make
  products, but do not create value from the
  stand point of the customer.
• Waste
• Motions that create no value and can be
  eliminated.

• Examples
• Investor reports
• Paying salaries

Motion

• Examples
• Quality inspection
• Multiple Sign offs

Source The Lean Enterprise Institute (2003),
Lean Lexicon
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7 cycle Analysis Form To understand the
variation between cycles

• Pick out the value added work elements
  (Transferable sequence of activities)
• Fill out the operation description column to list
  the work elements
• Using 2 to 3 operators observe the operation 7
  distinct times
• Record the work element cycle times for each
• Calculate Average and Standard Deviation for each
  work element
• Calculate Predicted Slowest Avg. 2 x St Dev
  for each work element

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Load Chart
Are we capable of meeting demand with current
operating cycle time?
Example Load Chart

• Observe the process, and categorise the
  steps/operations
• Create a stacked bar chart of the total work time
  per operation
• Overlay Takt
• Improve Operations to load processes up to 80-85
  of Takt
• Load Chart can be used for machines, people or
  full processes

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Value
19
Added
18
17
16
Value
15
Value
Added
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Value
added
TAKT 14Mins
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Added
Planned
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Waste
Cycle time
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Planned
10
waste
9
Planned
8
Planned
Waste
7
waste
6
5
Pure
Planned
Pure
4
Waste
Waste
Waste
3
2
Pure
1
Waste
A
B
C
D
E
Operation
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Load Balancing
Eliminate Pure Waste, then re-align
resources/tasks/etc to fit below 85 of Takt (may
need to add additional resources)
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Example Load Chart
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18
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16
15
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TAKT 14Mins
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D
E
B
12
C
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Cycle time
D
10
C
B
9
B
8
7
A
6
A
5
D
4
3
2
1
A
B
C
D
E
Operation
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How many people?

• What is the total work time required to produce
  one part (role)? take the average/worst case
• What is your Takt (i.e. how frequently do you
  need to make one of these parts)?
• Operators Total work time
• Takt

e.g. assume takes 30 seconds work to make 1
part and Takt 10 seconds (elapsed time in which
1 part must have been made) then Ops 3 people
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Go to it!

• Do 7 cycle analysis
• Come back with Load charts and Operator
  Calculations for next stage

60 mins
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Tools you will need(in the order you will need
them)

• Process observation (7 cycle analysis)
• Cycle times
• Load charting
• Load balancing
• Replenishment times
• Kanbans
• Inprocess candidates (WIP)
• Monument strategy (Bottleneck)
• Physical layout (flow, cells)

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Replenishment Time

• (RT) The time taken to make replace a product
  at the point of consumption (includes production,
  waiting, transportation)

Scenario 4 process steps to manufacture a
product. Process 4 only accepts A components from
9-12 am (when it processes A parts), and B
components from 2-5 pm (when it processes B
parts). All others run full 24hrs. Process 4
takes its WIP from a supermarket. How long does
it take to replenish the part taken? How long
does it take to replenish the part taken from the
FG Supermarket? What is the lead time for product
A or B?
Process 1
Process 2
Process 3
Process 4
2 hrs
3 hrs
3 hrs
2 hrs A9-12am B2-5pm
FG Super-market
Supermarket
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How to Calculate Kanbans

• Kanbans AD RT (1 Safety Factor)
• Standard Container Quantity
• AD Average Daily Demand (or monthly etc)
• RT Replenishment Time (Processing time wait
  transport etc)
• Safety Factor (Highest Demand - AD)/AD
• Min WIP total replenishment time x AD
• (lead time x production rate)

N.B. Kanbans equate to inventory, each card
represents 1 container (batch).
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Layout considerations
Geographically concentrated equipment to enable
operations to be performed within a Cell or
Line
To
From
Finished Goods
Raw Material
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Monument Strategy

• Remember The Goal
• What were the key rules around bottlenecks?
• How will you ensure your bottleneck is working on
  the right product (role)? What kind of signal
  will you put in place to replenish the pool of
  roles being recruited?

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Go to it!

• Calculate WIP, kanbans
• Work out your physical layout
• Define your monument strategy
• Do a trial run

60 mins
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!
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Replenishment time
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Example Load Chart
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18
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16
15
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TAKT 12 Sec
13
12
11
Cycle time
10
9
8
7
6
5
4
3
2
1
A
B
C
D
E
Interview
1 min
1 min
1 min
RT
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Calculating SF Kanbans

• Safety factor
• General (6MAX-4AD)/4AD 0.5
• Explicit
• MGR (3-2)/2 0.5
• DIR/VP (2-1)/1 1
• Std Container Qty 4 (have to be processed in
  batches of 4 at the monument)
• Kanbans
• General (4AD x 3RT x (10.5SF))/4SCQ 18/4
  4.5 (rounded up 5). In practice, you will start
  from this position, but as the operation smooths
  out you can reduce the number of kanbans.
• Explicit (per role)
• MGR (2AD x 3mins x (10.5SF))/4 9/4 2.25
  (i.e. 3 kanbans)
• DIR/VP (1AD x 3mins x (11SF))/4 6/4 1.5
  (i.e. 2 kanbans)
• Remember that 3 kanbans means 3 lots
  (batches) of 4 sheets i.e. 12 sheets.

News Flash! The max Mgrs in any month 3 Max VPs
in any month 2 Max Dirs in any month 2
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Team Debrief

• What problems did you have?
• How well did the team work?
• Did the tools for cell design work?
• What have you learnt?
• What are your solutions to fix your problems?