21st International Conference of the

TOC Practitioners Alliance - TOCPA

www.tocpractice.com

11 November 2015, UK

Metal Bond (Centre 04) Flow

Project
Karl Fitzsimmons, Bombardier Aerospace
N. Ireland
11 November, 2015

O4

Karl Fitzsimmons

O4

- Bombardier Aerospace
- Logistics Manager

Karl Fitzsimmons

www.tocpractice.com

21st International Conference of the

TOC Practitioners Alliance - TOCPA

O4

What is Centre 04?

221,000 sq ft plant housing approx. 350 employees

It is the Centre of Excellence for Metal Bonding and Chemical

Milling

Main products are fuselage skins & nacelle components for

almost all Bombardier Programs

This pilot project centred on the fuselage skins involving approx.

100 employees.

www.tocpractice.com

21st International Conference of the

TOC Practitioners Alliance - TOCPA

O4

What is Centre 04? (contd)

Fuselage Panel

www.tocpractice.com

21st International Conference of the

TOC Practitioners Alliance - TOCPA

O4

This is Metal Bond Centre 04

www.tocpractice.com

21st International Conference of the

TOC Practitioners Alliance - TOCPA

O4

This is Metal Bond Centre 04

It contains some processes quite difficult to describe in

terms of capacity
www.tocpractice.com

21st International Conference of the

TOC Practitioners Alliance - TOCPA

These processes are particularly difficult!

Autoclaves

Masking Robot

Cleanline

Chemi-mill

www.tocpractice.com

O4

21st International Conference of the

TOC Practitioners Alliance - TOCPA

What is Centre 04? (contd)

O4

6 Axis Router
ERP systems are notoriously poor at
understanding the product process
characteristics of plant like this and
consequently launch at the wrong time and in
the wrong sequence causing all sorts of
expediting and wasted effort

www.tocpractice.com

21st International Conference of the

TOC Practitioners Alliance - TOCPA

Our Project: Metal Bond (Centre 04) Flow Project O4

Problem Statement historically C04 was plagued with recurring

problems
Inventory levels were too high
On time delivery to the Customer was sporadic
Silo based governance
Perception of poor teamwork

Project Challenge
Reduce Inventory by 40%
Align C04 fuselage supply to Customer Demand
Develop visual management for a flow environment

Significant Leverage Potential

www.tocpractice.com

21st International Conference of the

TOC Practitioners Alliance - TOCPA

O4

Our Approach

Theory of Constraints (TOC)

Throughput

Inventory

OE

DOWN

UP

DOWN

An approach to Continuous Improvement which aims to

:
Expense

Simultaneously
TOC seeks to PULL materials through the system,
rather than PUSH them in.

www.tocpractice.com

21st International Conference of the

TOC Practitioners Alliance - TOCPA

Bombardier C04 pull system

First loop parameters

O4

Loop 1
with
physical
capacity
for approx
70 flight
bars in
front of
the laser

www.tocpractice.com

21st International Conference of the

TOC Practitioners Alliance - TOCPA

Bombardier C04 pull system

2nd loop risk and countermeasure

Farnhams
M
A
T
R
I
X
S
E
Q
U
E
N
C
E

Laser scribe

RM

1 DAYS WORTH
MATERIAL ON ITS WAY TO
THE BUFFER

O4

Transfer
buffer of
flight bars

M
A
T
R
I
X

O
R
D
E
R
S

1-4
DAYS
TIME BUFFER

70 FLIGHT BARS
CIRCULATING

www.tocpractice.com

21st International Conference of the

TOC Practitioners Alliance - TOCPA

Bombardier C04 pull system

The laser scribe scheduler
SDOS

3-Nov-08

O4

14 days

Horizon
1

Mon-03
Tue-04
Wed-05

GS214 5066 001 1

GS214 5041 003 1

SH670-31002-9 1

SH670-33003-11 1

SH670-33003-11 1

Thu-06
Fri-07

SH690-33102-17 1
SH690-33124-11 1

85360131-115 1
SH670-31151-13 1

SH670-33003-11 1

SH690-33102-19 1

85360131-115 1
SH670-33162-13 1

SH690-31351-9SH690-31351-9
1
1

Sat-08
Sun-09
Mon-10
Tue-11
Wed-12

604-32151-7 1 85327112-105 1
85360131-116 1

85360131-116 1

SH670-33003-11 1

Thu-13
Fri-14

85360111-107 1
GM124 1502 029 M1 12
SH670-35133-10 1
600-31016-225 1 600-31017-219 1

85360131-115 1

85360131-116 1

SH690-31351-9SH690-35073-19
1
1
600-31020-191 1 600-31021-83 1
85360131-116 1

SH690-35073-19 1
600-31022-133 1
GS214 0097 003 1

Sat-15
Sun-16

www.tocpractice.com

21st International Conference of the

TOC Practitioners Alliance - TOCPA

O4

Bombardier Pull System Implementation

RESULTS TO DATE

www.tocpractice.com

21st International Conference of the

TOC Practitioners Alliance - TOCPA

Bombardier C04 pull system

Lateness Wk 47 vs Wk 50

O4

As we get better Schedule Adherence at the Laser scribe and more predictable lead
times in Loop 2 we should see the outliers squeezed increasing on time and reducing
earlies and lates
www.tocpractice.com

21st International Conference of the

TOC Practitioners Alliance - TOCPA

Bombardier C04 pull system

What is OTIF performance by Day?

www.tocpractice.com

O4

21st International Conference of the

TOC Practitioners Alliance - TOCPA

Bombardier C04 pull system

What is OTIF performance by Day?

www.tocpractice.com

O4

21st International Conference of the

TOC Practitioners Alliance - TOCPA

Bombardier C04 pull system

What is OTIF performance by Day?

www.tocpractice.com

O4

21st International Conference of the

TOC Practitioners Alliance - TOCPA

Bombardier C04 pull system

What is OTIF performance by Day?

www.tocpractice.com

O4

21st International Conference of the

TOC Practitioners Alliance - TOCPA

Bombardier C04 pull system

Lateness Wk 47 vs wk 50

www.tocpractice.com

O4

21st International Conference of the

TOC Practitioners Alliance - TOCPA

O4

CO4 Performance Assessment

Savings
Demand

Absolute

Week

in No of

Days of

Value of Nett Inventory in

Period

Day

Panels

Inventory

Inventory $'s No of Panels

36D3

333

2
3
4
5
6
7
8
9

38D5
39D1
40D2
41D2
9'03D3
9'04D2
9'04D4
9'05D2

333
333
333
333
387
387
387
387

39.97
37.22
35.39
32.46
28.15
22.78
24.12
24.75
23.33

588590

436

531229
507380
433378
403942
438159
432432
434943
404008

406
386
354
307
289
306
314
296

Savings

Savings in Relative to
$'s

Demand $'s

Relative to
Demand

Inventory

$000's

Turns
9.01

57362
81211
155212
184649
150432
156159
153647
184582

www.tocpractice.com

39,253
65,723
100,387
169,735
330,833
284,346
267,629
288,279

39
66
100
170
331
284
268
288

9.67
10.17
11.09
12.79
15.81
14.93
14.55
15.43

21st International Conference of the

TOC Practitioners Alliance - TOCPA

Concept Applied
DRUM

BUFFER

O4

ROPE

Step 1: Identify the Constraint i.e. pacing item

- Limits throughput
DRUM
Step 2: Focus all efforts on the constraint
- Schedule the constraint
- Protect the constraint

BUFFER

- Control the release of material

ROPE

Step 3: Ensure all other activities in the system provide a service to the
constraint
Step 4: Manage the capacity at the constraint to meet Customer demand
Step 5: Repeat the process as necessary Plan, Do, Check, Act.

What does this look like within C04?

www.tocpractice.com

21st International Conference of the

TOC Practitioners Alliance - TOCPA

Our Application

O4

True Customer Demand

Drum Schedule
Loop 1
Flow to Laser through
all preceding activities

Loop 2
Flow post Laser through
all subsequent activities
Buffer
Time based
buffer
Laser

Drum =
Laserscribe

www.tocpractice.com

21st International Conference of the

TOC Practitioners Alliance - TOCPA

Our Governance Schedule Adherence &

Flow Rate

O4

Drum Schedule
Schedule Adherence at Laserscribe =
Percentage of jobs completed to the planned
sequence through the Drum.

Target = 100% Schedule adherence

Daily Visual Governance for Flow

Flow Rate = The percentage of jobs

dwelling less than 1 day at each activity.

Target = 100% Flow

100% Schedule Adherence & Flow Rate =

Optimum performance.

www.tocpractice.com

21st International Conference of the

TOC Practitioners Alliance - TOCPA

Leadership Challenges

O4

C04 Culture
Long established way of working
Poor teamwork, low morale, unhappy customers
Risk averse
Major change in mindset required
Theory of constraint principles challenged traditional views / financial metrics
Needed to separate the complexity of C04 with the simplicity of the solution

Lower inventory unearthed hidden problems

New process was held responsible when things went wrong
Importance of developing support strategies

Investment in training and education was significant the need was not
always understood

www.tocpractice.com

21st International Conference of the

TOC Practitioners Alliance - TOCPA

Business Results aligned to Bombardier Business Priorities

O4
Amazing
Customer
Experience

Eliminating
As a customer, the Waste

introduction of the C04 flow

project has certainly improved
This project challenges all our conventions
measures,
panel supply
significantly, and
governance and how we run a fabrications
business.
The
- 51%
Inventory
days
reduction
with
further
improvements
- Synchronised
Customer
delivery
on
time.
- Rope
leverage potential is absolute..
we mechanism
witnessed prevents
a team inventory
- Improved responsiveness to Customer
expected,
satisfaction
levels
build- uparound
/ over production
working
in
harmony
with
genuine
alignment
a
common
- Moving towards zero travelled work
reduction
- material
handling
certainly
grow.
purpose - Scrap will
(fix at source)
- Alignment creates Customer confidence

reduced due to less queues

If we can refine this process in a

complex area such as Centre 04,
we can easily rollout the learning
Harry Wilkinson
Ronnie Scott Supply Chain manager, Composites Unit
to other areas. Quality, Cost,
Production Manager
- Improved Teamwork - Natural Team aligned
Footprint all get a benefit,
on the
Panel Assembly Centre
to common goal
people side, people -Significant
like to be workplace environment change
part of a success and supporting
therefore Health and Safety
George Dodds
-High visual governance
system new
will become aligned.

Safe & Rewarding

Workplace

metrics

VP Operations
www.tocpractice.com

21st International Conference of the

TOC Practitioners Alliance - TOCPA

Summary and Next Steps

O4
Before

After

(Wk35 08)

(Wk15 09)
% Reduction

Inventory reduction
No. panels

432

178

59%

39

19

51%

587K

254K

57%

Schedule Adherence

n/a

80%

Flow Rate

n/a

92% Loop1
65% Loop 2

Days worth of Inventory

$ Value

Flow Governance

Customer Satisfaction
Avg No. of Jigs Stopped

6 per week

0-1 per week

Next Steps
Continue to improve pilot results
Leverage to the balance of product / people in C04.
Leverage beyond C04.
www.tocpractice.com

21st International Conference of the

TOC Practitioners Alliance - TOCPA

Making schedule adherence live

O4

Not just a measure for the planner: how well did they stick to my plan?
A measure for operations to focus the whole team on how were using and
losing time:
Equipment not available due to breakdown
Waiting for materials
Waiting for product
Waiting for people
Production run took longer due to running at lower than standard line
speed
Changeover took longer than standard time
Production run took longer due to need to rework product/run in manual
instead of automatic
Drives the continuous improvement cycle

www.tocpractice.com

21st International Conference of the

TOC Practitioners Alliance - TOCPA

Bombardier Flow Project Oct

Current State

O4

2 x Key Resource control points depending upon products

1 x Free flow (Other)

OTIF to MRP
43% -50%

Centre 04
Autoclaves

Chemi Milling
Other

2.1 days

2.6 days
$ 399k
Work in Progress
15.70 days

$ 865k

Finished goods
7.41 days

Snap shot of the buffers

www.tocpractice.com

21st International Conference of the

TOC Practitioners Alliance - TOCPA

Bombardier Flow Project Oct

Current State

O4

2 x Key Resource control points depending upon products

1 x Free flow (Other)
Average Lead Time is 21 days (Before)
Standard Deviation is 10 days
Coefficient of Variation 0.5 unexceptional
Average Lead Time is 15.7 days (After)
Standard Deviation is 7.8 days
Coefficient of Variation 0.5 unexceptional
Average Planned Lead Time is 12.14 days (MRP)
www.tocpractice.com

21st International Conference of the

TOC Practitioners Alliance - TOCPA