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Cellular Manufacturing    201


                    delay button. At first glance, the production numbers do not look too bad until we
                    recall that the design of 186 was based on an OEE of 85 percent, or 15 percent losses due
                    to quality, availability, and cycle-time losses. The data we analyzed showed:
                        •  Quality losses to be 3.1 percent
                        •  Zero availability losses
                        •  All other losses were cycle-time losses
                       So what were the cycle-time losses? The design hourly rate at 100 percent efficiency
                    was 225 units but we produced 163 units so losses were 62 units or 27.6 percent. If qual-
                    ity and availability losses total 3.1 percent this means cycle time losses total 27.6 percent
                    –3.1 percent or 24.5 percent … which is huge! With all these losses the effective cycle
                    time is 22 seconds (21.5 × 3600/3516).
                       Our design is synchronized externally since we need a 16.4-second cycle time and
                    have a design of 16 seconds, which supposedly should work nicely. It does not, however,
                    and the reason it does not work is because the production cycle time is not producing
                    anywhere near takt × OEE.
                       So, just what can we do about it?
                       Well, we need to redesign the production process so it will produce to takt, and to
                    do that, we will proceed to Strategy 2: Synchronize Production, Internally.

                    Strategy 2: Synchronize Production, Internally

                    A New Approach, Multiple Work Cells
                    We will attack this problem with cellular design, which will directly reduce the varia-
                    tion and better balance the flow, using multiple cells in our new design.
                       The questions we must first answer are:
                        •  How many cells?
                        •  How many persons per cell?
                        •  What is the cell layout?
                    The Time Study and Line Balance Review
                    A time study was performed and a line balance chart was constructed (see Fig. 13-1).
                       As we evaluate the line balance chart, we find the following.

                                              Gamma Line, Line Balance Chart
                        14
                        12
                        10
                       Time, secs  8 6


                         4
                         2
                         0
                            1  2  3  4  5  6  7  8  9  10 11 12 13 14 15 16 17 18 19 20 21
                                                        Stations
                    FIGURE 13-1  Gamma Line balance chart, base case.
   218   219   220   221   222   223   224   225   226   227   228