4-6 7001A 2-16 A 7 Constraints Time Traps UoC7001A - 91558NSW CLR

Time Traps and Constraints
Lean Six Sigma

Fundamental Skills &
Knowledge
Constraint & Time Trap
Identification
LSS e-Learning
Curriculum under License from
91558NSW Vocational Graduate Certificate in Lean Six Sigma
Lean Six Sigma Australasia Unit 7001A Apply Lean Six Sigma Fundamental Skills and Knowledge
Key Objectives
 Learn the difference between a capacity constraint and a
time trap
 Understand the tools to identify a capacity constraint

 Takt Rate Analysis
 Practice a Load Factor Report Analysis
 Understand the tools to identify time traps

 Workstation Turnover Time
 Using a simple WTT Spreadsheet Analysis
91558NSW Graduate Certificate in Lean Six Sigma

1 Unit 7001A Apply Lean Six Sigma Fundamentals
Lean Definitions
 The following terms are used frequently to quantitatively describe the
output of a process and the critical process steps:
 Capacity: The maximum amount of product (output) a process can deliver
(produce) over a continuous period of time
 Takt Rate: The amount of product (output) required by the customers over
a continuous period of time
 Time Trap: The process step that inserts the most delay time into a
process
 Constraint: Any process step that is unable to produce at the exit rate
required to meet customer demand (internal or external Takt rate)
 Workstation Turnover Time (WTT): The time it takes for all
products/services to pass through a workstation once in a processing cycle
What Is a Time Trap?

 Time traps insert delay time into a process
 Time traps can create long lead times, large
downstream inventories, large WIP,
 Time traps are principally due to long setup times,
machine or human downtime, or quality problems
 Time traps can change over time (monthly, weekly, This is a
even daily) based upon product mixes or special causes
(new product introductions, special orders, etc.)
Time Trap!!
 Time traps can be caused by physical problems (such as
process flow, personnel availability, part/supply
shortages, equipment availability, others)
 Time traps can also be caused by non-physical problems
(such as procedures, morale, unsafe work environments,
lack of training, others)
 There is ALWAYS a time trap in a process!

What Is a Constraint?
 Constraints limit the output capacity of the process
(sometimes called bottlenecks)
 Constraints have less capacity than the prior or
subsequent steps/operations
 Constraints are time traps that cannot meet
customer demand (a constraint is ALWAYS a time This is a
trap, but a time trap may not be a constraint!)
Constraint!!
 Constraints can change over time (monthly, weekly,
even daily) based upon product mixes or special causes
(new product introductions, special orders, others)
How Are Time Traps Created?

 Poor process flow  Distance
 Machine capacity  Safety concerns
 People  Poor scheduling
 Lack of parts  Product mix
 Transportation methods (cranes, foot, etc)  Excessive WIP
 Handoffs  Variability of the process
 Large batch sizes  Stress
 Operational deficiencies  Turnover
 Setup
 Scrap (low yield)  others
 Downtime
 Rework

The Importance of Time Traps

 The most limiting step of this process
Time Time Trap
Exit
Rate
Activity 1 2 3 4 5 6 7
 If we do not understand where the time trap exists, we may end

up focusing our project on the wrong process activity
 Remember that the Time Trap governs the throughput
Time Trap Identification

 With Constraint Identification, we are interested in
finding the operations or processes that will facilitate
meeting customer demand
 With Time Trap Identification, we are interested in

finding the operation or process that will facilitate
improving process efficiencies and throughput
 Time traps impact efficiencies by requiring more inventory,

more equipment, more people, more material, and more
time in order to meet customer demand

Pareto Principle and Bottlenecks

 Applying the Pareto Principle to time traps means that in most
environments, 80% of the inefficiency or delay is caused by 20%
of the steps in the process
 Turning this around then states that making improvements to 80% of

the steps in the process has little to no impact on efficiency or speed
 Therefore it is critical that our improvement projects are focused on

the time traps
The Importance of Constraints

 This time trap is also a constraint…
One Time Trap Constraints
Max. time to
Time
meet customer
demand
Activity 1 2 3 4 5 6 7
 Unless we attack the constraints, we will continue to be unable

to meet customer demand.

Project Focus
Time Traps or Constraints
Time Traps
 Focus on time trap identification if the goal of your project is to

improve efficiencies (in inventory, lead time, output rates, others)
Constraints
 Focus on constraint identification if the goal of your project is to

increase capacity
We priority look at constraint identification first

since it impacts the customer satisfaction
Constraint Identification
Takt Rate Analysis
LSS e-Learning

Takt Time and Takt Rate

We use Takt Time when We will use Takt Rate when
describing the output of a referring to Customer
given step/task Demand
Takt Time = Customer Demand Takt Rate =Customer Demand
(stated in time per unit) (stated in units per time)
“It takes 10 seconds per unit” “We can make 6 units per minute”
Example: Takt Time = seconds/piece Example: Takt Rate = pieces/second

Production Time Available Number of Units to Produce
Takt Time = Takt Rate =
Number of Units to Produce Production Time Available
Note: Takt is German for “metronome” or musical beat
Example of
Takt Rate Analysis
 Takt Rate = “Customer Demand” Main Production Board: Operation 3
 An excellent workstation visual Yesterday: 443 Units 1.61 Units/ labor hr
control tool used to help operators Today: 445 Units 1.62 Units/ labor hr
maintain a customer rhythm to Hour Takt Rate Actual +- Diff Comments
throughput is a Takt Board

7-8 AM 60 53 -7 Down for 5 min
8-9 AM 60 59 -8
In this Takt Board example

9-10 AM 45 48 -5 Skipped prodn meeting
 10-11AM 60 61 -4
 the hourly Takt rate is pre-planned 11-12 PM 30 34 0 Took late lunch
to take into account shift activities 12-1 PM 60 59 -1
such as breaks, lunch and meetings 1-2 PM 60 58 -3
2-3 PM 45 44 -4
 The customer daily demand is 450 3-4 PM 30 29 -5
 Did Operation 3 meet Takt Rate? Totals 450 445

Number of Units to Produce Step 1: Write in the number of units produced and the units/hour from yesterday
Takt Rate =
Production Time Available Step 2: Write in the number of units to produce and the units/hour goal for today,
confirm the takt rate for each hour (account for breaks and lunch)
Constraint Identification Step 3: Each hour, write in the number of units produced in the previous hour
The Constraint is the operation or process Step 4: Write in the cumulative difference between the scheduled units
produced and the actual units produced
that produces below the Takt Rate Step 5: Write in any comments (frame welder down, no glass) as a reason for
meeting or not meeting the takt rate.

Aided exercise:
Constraint vs. Time Trap
Operation Operation Operation Operation

1 2 3 4
Input Task Time
=
Task Time
=
Task Time
=
Task Time
= Output
30 sec/unit 40 sec/unit 45 sec/unit 35 sec/unit
Process Lead Time
Task Time above = The total amount of time needed to

accomplish the operation
1. Which operation is time trap?
2. If the takt rate is 75 units per hour, is there a constraint?
3. What if the customer is demanding 85 units per hour?
Aided exercise cont:

Constraint vs. Time Trap
 We will aid you with this one but can you workout the math
conversion using the Takt Rate & Takt Time formulas?
1. One Time Trap 3. Time Trap & Constraint

2. Max. Takt Time
50 - to meet customer 50 -
45 - demand is 48 45 - 3. Takt time
seconds per unit 42 seconds
40 - 40 -
Time (secs)
Time (secs)
per unit
35 - 35 -
30 - 30 -
30 sec 40 sec 45 sec 35 sec 30 sec 40 sec 45 sec 35 sec
25 - 25 -
Per Per Per Per Per Per Per Per
20 - unit unit unit unit 20 - unit unit unit unit
Activity 1 2 3 4 Activity 1 2 3 4
1. Which operation is time trap?

2. If the Takt Rate is 75 units per hour, is there a constraint?
3. What if the customer is demanding 85 units per hour?

Constraint Exercise: Load Factor Analysis

Good Rhythms Co.
 We are the owners of Good Rhythms Co and need to know the

following to maximize production capabilities.
 The customer demand appears to be high compared to our production
abilities. What do you think?
1. What is the net operating time (hours per week)?
2. What is the factory Takt Rate (units/hour)?
3. What is the time trap in the process? What is its’ capacity (in units per
hour)?
4. Is the time trap a constraint (can it produce to the takt rate – Yes/No)?
5. If an additional piece of equipment is purchased to increase capacity at
the time trap, what is the new capacity?
Constraint Exercise
The Process
 This production process is a four
step operation
Operation 1 Operation 2
Operation 3
Operation 4 Ship

Constraint Exercise
Basic Operating Data
 The company has a customer demand of 16,000 units per
week.
 The factory operates:

 5 days per week
 3 shifts per day
 Each shift receives a 20 minute paid lunch
 Each shift receives 2 x 10 minute paid breaks
Constraint Exercise
Operating Capacity
Operation Capacity/Mach # Machines
 Operation 1 60 units/hr 3

Results Constraint Exercise

Load Factor Analysis
1. What is the net operating time (hours per week)?
 __________________________________________
2. What is the factory takt rate (units/hour)?
 __________________________________________
3. What is the capacity time trap in the process? What is its’ capacity (in units
per hour)?
 __________________________________________
4. Is the time trap a constraint (does it take longer than the takt rate – Yes/No)?
 __________________________________________
5. If an additional piece of equipment is purchased to increase capacity at the
time trap, what is the new capacity?
 __________________________________________
Constraint Exercise: Load Factor Analysis

Good Rhythms Co.
 Complete the Load Factor Analysis Exercise
 Show the numbers for each of the five questions
 Illustrate the Load Factor Analysis with a Takt Rate bar graph

Time Trap
Identification
Workstation Turnover Time (WTT)
LSS e-Learning
Time Trap and Workstation Turnover Time

 Capacity constraints can be found using Takt rate analysis, but how does one
identify a Time Trap in complex inefficient operations?
 To determine the time traps in a process one must consider the different
operating parameters of both the workstations in the process and the products
flowing through the process
 For example
 how do setup times, processing times, and batch sizes affect individual
workstations?
 We can use some fundamental analysis that relate these parameters in a term
called Workstation Turnover Time (which is comparable to inventory
turns), to calculate the time trap

Definition of
Workstation Turnover Time (WTT)
 WTT is the Workstation Turnover Time
 the amount of time to setup and run all parts/products/services at a given
workstation once in a processing cycle
 Formula
WTTk = [(Setup Time i ) + (Process Time i x Batch Size i )]
 Where k = 1 to a number of workstations in the process

 Where  = The sum or addition of each block (parenthesis)
 Where i = 1 to n part numbers routed across that workstation
 We will develop this equation later in the program (to help us analytically
size batches), but it is important to understand in this application
 To determine which workstation is the critical time trap, simply
calculate WTT for each workstation in the process
 the station with the longest WTT is the critical time trap
Process Constraint Identification:

Understanding WTT
Scenario 1: Workstation Z processes three parts: A, B, C
If the parts are run sequentially (one after another), then:
WTT for workstation Z is defined as:
Batch A Batch B Batch C Batch A Batch B Batch C
Setup A Process A Setup B Process B Setup C Process C Setup A Process A Setup B Process B Setup C Process C
WTTZ WTTZ
Scenario 2: Workstation Z processes three parts: A, B, C

The parts are not run sequentially (not one after another), then:
WTT for workstation Z is defined as:
Batch A Batch B Batch A Batch C Batch A Batch B
Setup A Process A Setup B Process Setup A Process A Setup C Process C Setup A Process A Setup B Process B
B
WTTZ
WTT for workstation Z is the same in both scenarios

Aided exercise:
Workstation Turnover Time Example
 Use the data given below to solve for WTT= [(Setup Timei )+(Process Timei
x Batch Sizei)]
WTT = [(SetupA)+(Process TimeA x Batch SizeA)+(SetupB)+(Process TimeB x Batch SizeB)]
 [(4 hrs)+(.01 hrs/unit x 1000 units) + (4 hrs) + (.01 hrs/unit x 1000 units)
 WTT = [(4 hrs) + (10 hrs) + (4 hrs) + (10 hrs)]
 WTT = 28 hrs
Description Value Unit

Product A Product B
Setup A 4 hrs
Setup B 4 hrs
Process Time A 0.01 hrs/unit
Process Time B 0.01 hrs/unit
Batch Size A 1000 units
Batch Size B 1000 units
Demand A 35.71 units/hr
Demand B 35.71 units/hr
Available hours 40 hrs/week Workstation Z
WTT = ?? hrs
Aided exercise cont:

WTT Example Explanation
 Given the workstation data of setup time, process time, and batch
size, the WTT in this example is 28 hrs.
 This 28 hour WTT is a reflection of the workstation’s inflexibility.

Because of the setup time and required batch size, this workstation
is injecting delay time into the process.
 Calculating WTT for each workstation in the process allows us to

find the workstation that is injecting the most delay time. This
workstation is the critical Time Trap.
 As mentioned, later we will learn how to analytically right batch

sizes given workstation data such as setup time, scrap, rework,
downtime, etc. As batch sizes are changed due these parameters,
WTT will change. So ultimately WTT is impacted by all of these
parameters as well.

Key Learning
 How to identify capacity constraints in a process
 How to identify time traps in a process
 Understand the tools used to determine constraints and

Time Traps
 Takt Rate and Takt Time formulas
 Load Factor Analysis
 WTT Analysis
LSS e-Learning
This Training Manual and all materials, procedures and systems herein contained or depicted (the
"Manual") are the sole and exclusive property of Kirtland Leadership Pty Ltd/ Lean Six Sigma
Australasia (“LSSA”).
The contents hereof contain proprietary trade secrets that remain the private and confidential property
of LSSA. Unauthorized use, disclosure, or reproduction of any kind of any material contained in this
Manual is expressly prohibited. The contents hereof are to be returned immediately upon termination
of any relationship or agreement giving user authorisation to possess or use such information or
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conflicting or inconsistent provision(s) of this Manual in all properties subject to that law.
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All Rights Reserved.
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Time Traps and Constraints

Lean Six Sigma

 Understand the tools to identify a capacity constraint

 Understand the tools to identify time traps

91558NSW Graduate Certificate in Lean Six Sigma

What Is a Time Trap?

91558NSW Graduate Certificate in Lean Six Sigma

How Are Time Traps Created?

91558NSW Graduate Certificate in Lean Six Sigma

The Importance of Time Traps

 If we do not understand where the time trap exists, we may end

 Remember that the Time Trap governs the throughput

Time Trap Identification

 With Time Trap Identification, we are interested in

 Time traps impact efficiencies by requiring more inventory,

91558NSW Graduate Certificate in Lean Six Sigma

Pareto Principle and Bottlenecks

 Turning this around then states that making improvements to 80% of

 Therefore it is critical that our improvement projects are focused on

The Importance of Constraints

One Time Trap Constraints

 Unless we attack the constraints, we will continue to be unable

91558NSW Graduate Certificate in Lean Six Sigma

 Focus on time trap identification if the goal of your project is to

 Focus on constraint identification if the goal of your project is to

We priority look at constraint identification first

91558NSW Graduate Certificate in Lean Six Sigma

Takt Time and Takt Rate

Example: Takt Time = seconds/piece Example: Takt Rate = pieces/second

Note: Takt is German for “metronome” or musical beat

maintain a customer rhythm to Hour Takt Rate Actual +- Diff Comments

throughput is a Takt Board

In this Takt Board example

 the hourly Takt rate is pre-planned 11-12 PM 30 34 0 Took late lunch

to take into account shift activities 12-1 PM 60 59 -1

such as breaks, lunch and meetings 1-2 PM 60 58 -3

 Did Operation 3 meet Takt Rate? Totals 450 445

91558NSW Graduate Certificate in Lean Six Sigma

Operation Operation Operation Operation

Process Lead Time

Task Time above = The total amount of time needed to

Aided exercise cont:

1. One Time Trap 3. Time Trap & Constraint

1. Which operation is time trap?

91558NSW Graduate Certificate in Lean Six Sigma

Constraint Exercise: Load Factor Analysis

 We are the owners of Good Rhythms Co and need to know the

91558NSW Graduate Certificate in Lean Six Sigma

 The factory operates:

91558NSW Graduate Certificate in Lean Six Sigma

Results Constraint Exercise

Constraint Exercise: Load Factor Analysis

91558NSW Graduate Certificate in Lean Six Sigma

Time Trap and Workstation Turnover Time

91558NSW Graduate Certificate in Lean Six Sigma

WTTk = [(Setup Time i ) + (Process Time i x Batch Size i )]

 Where k = 1 to a number of workstations in the process

Process Constraint Identification:

Scenario 2: Workstation Z processes three parts: A, B, C

91558NSW Graduate Certificate in Lean Six Sigma

Description Value Unit

Aided exercise cont:

 This 28 hour WTT is a reflection of the workstation’s inflexibility.