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Engine Unit Module Project                                                           1/11

                                                         author: Russell Sims
                                                         date: May 28, 2008




                   Project Description
Main Deliverables of the Project
   1. To provide C9 and C13 engine modules to the SpeedLine at a rate to satisfy takt
      time during maximum customer demand cycles.
   2. Engine Unit shall maintain a buffer to feed the SpeedLine of not less than 1 and
      no more than 3 engine unit of each type.

Customer of the Project
   1. Customer of this project is the SpeedLine in general and specifically station 2 of
      the SpeedLine.

Scope of the Project
   1. This project shall encompass all engine models produced for Lokotracks in the
      Columbia Manufacturing facility.
   2. Current product mix consists of C13 Modules for LT200HP and C9 Modules for
      LT106. We are currently forecast to build LT1213 and LT1213S Lokotracks which
      will take a slightly Modified C13 Module.




                        (Remainder of page intentionally blank)
Engine Unit Module Project                                                       2/11

                                                          author: Russell Sims
                                                          date: May 28, 2008



                          Structure of the Project




                                          Time
                                          Study



                                         Make/Buy
                                          Anaysis


                              Layouts                  Sub
                                and                 assembly
                             Balancing              breakouts


Project Classification
   1. This Project is unclassified and contains no confidential data.

Project Owner
   1. LT Manufacturing Engineer is the owner of this project

Project Manager
   1. Russell Sims is the LT Implementation Project Manager.

Required Human Resources (Internal)
   1. Engine Module Assembly Team consisting of 1 team leader, five team members
      and a material services person.
   2. Supervisor element
Engine Unit Module Project                                                               3/11

                                                          author: Russell Sims
                                                          date: May 28, 2008



Required Human Resources (External)
   1. Intern for data collection

Other Required Resources
   1. Material handling equipment, IT services, tools and tool boxes, communications
      devices, maintenance support.



                                     Product Mix
                                     Monthly                                 Monthly       Daily
                         Annual      average                                  max.         max.
                         demand      demand         Daily average demand     demand       demand
LT106 C-9                  140         11.7                  0.56              20           0.95
LT1213 / -S C-13           110          9.2                  0.44              15           0.71
LT200HP C-13               100          8.3                  0.40              25           1.19
         Total demand      350         29.2                                    60

                           days
Annual time available      220                                                   hours
Monthly time available      21                 Total assembly process time        24
                                               Planned takt timemin              5.03
                         hrs/month
Time available in 1
shift                      168                 Calculated number of stages        4.8
Time available in 2                            Selected number of stages
shifts                     336                 (takts)                            5
Time available in 3
shifts                     504

                          hours
Annual time available     1760
Monthly time available     168

Line takt timemin          5.03

                         unit/hour
Line speedmax              0.20
Engine Unit Module Project                                                               4/11

                                                                  author: Russell Sims
                                                                  date: May 28, 2008



                            Product Architecture Review




                       Demand Rates & Available Time
                                            Monthly    Daily    Monthly    Daily
                          Annual            average   average    max.      max.
                          demand            demand    demand    demand    demand
   LT106 C-9                140               11.7      0.56      20        0.95
   LT1213/LT1213S C-13      110                9.2      0.44      15        0.71
   LT200HP C-13             100                8.3      0.40      25        1.19
             Total demand   350               29.2                60

                                  days
   Annual time available          220
   Monthly time available          21

                                hrs/month
   Time available in 1 shift       168
   Time available in 2 shifts      336
   Time available in 3 shifts      504
Engine Unit Module Project                                                               5/11

                                                                  author: Russell Sims
                                                                  date: May 28, 2008



                   Line Design : Takt timemin and Line speedmax
          1. Takt time is the pace of production to match the rate of customer demand.
          2. Takt time is the heartbeat of the whole production system


                                                    Formula:
                                          Monthly
                          Annual          average   Takt timemin = Time available/Total demand
                          demand          demand
   LT106 C-9                140             11.7    Line Speedmax =1/Takt time
   LT1213/ LT1213S C-13     110              9.2
   LT200HP C-13             100              8.3
                                                    Example:
             Total demand   350             29.2    Takt timemin = 1760 h/350 units =5.02 h
                               hours                Line Speedmax =1/2.03 h = 0.20 unit/h
   Annual time available       1760
   Monthly time available       168                 (Note) This line design calculation is based on
                                                    production mainly in one shift)
   Line takt timemin            5.03

                              unit/hour                          Line Design
   Line speedmax                0.20




                            Product-specific high season demand rates

                                                    Product-specific demand rate for materials
                                       Monthly
                            Annual      max.        planning formula:
                            demand     demand
LT106 C-9                                           Rate = Product Demand/days of planning
                             140          20        period
LT1213/ LT1213S C-13
                             110          15        Example High Season Rate for LT106 C-9
LT200HP C-13
                             100          25
                                                    Rate = 20 pcs/21 days = 0.95 pcs/day
         Total demand
                             350          80
Engine Unit Module Project                                                                    6/11

                                                                       author: Russell Sims
                                                                       date: May 28, 2008




                                          Annual        Monthly average
                                          demand           demand
LT106 C-9                                   140              11.7
LT1213 / -S C-13                            110               9.2
LT200HP C-13                                100               8.3
                      Total demand          350              29.2

                       unit/hour
  Line speedmax             0.20


                              hrs/month   unit/month
Time available in 1 shift          168       33        Line outputmax in 1 shift
Time available in 2                                    Line outputmax in 2
shifts                             336       67        shifts
Time available in 3                                    Line outputmax in 3
shifts                             504       101       shifts



               Formula:
               Line outputmax = Available timemax x Line Speedmax
               Example: In 2 shift time available 336 h/month.
               Line speedmax=0, 20 unit/h (takt time 5.03 h)
               Max. Line output in 2-shift= 336 x 0, 20 = 67 units/month


               Needed daily run hours = Total demand / Line Speedmax
               Example: Demand 50 unit/month
               Needed run hours = 50/0.20=250 h/month = 11.9 h/day
               Two Shifts Needed During High Season
Engine Unit Module Project                                                            7/11

                                                            author: Russell Sims
                                                            date: May 28, 2008



  Fast and Slow Options
     1. There are no fast or slow options currently available for the engine modules. We
        will revisit this subject if the need arises.

  Consumption Rate for Fast Options
     1. There are no fast options currently available for the engine modules. We will
        revisit this subject if the need arises.

        Minimum Lead Time from Work Order to Assembly


        Work Order
         Recieved                                 Engine Mounted on
        (SpeedLine)                                   Lokotrack


                       Minimum Lead Time 2.5 D
               Minumum Customer response time 3.5 D




  Split Minimum SpeedLine Lead Time into Sub-process Lead Times
            Work Order
             Recieved                                 Engine Mounted on
            (SpeedLine)                                   Lokotrack


                           Minimum Lead Time 2.5 D                 3 Stage production needed
                                                                   based on lead times and
                  Minumum Customer response time 3.5 D
                                                                   throughput calculations


Sub assembly          Station 2                     Testing
                                  Station 3
   1.05 D              .66 D                         .5 D
                                    .71 D
Engine Unit Module Project                                                                                             8/11

                                                                               author: Russell Sims
                                                                               date: May 28, 2008



                                        Preliminary Line Balancing


 500
                                                                                                         Engine warm-up/Hydraulic Test
 450                                                                                                     Electrical Test
                                                                                                         Electrical connection
 400
                                                                                                         Hydraulic connection
 350                                                                                                     Priming Deisel
                                                                                                         Hydraulic oil
 300                                                                                                     Bottom Plates (2)
                                                                                                         Ball Valves (2)
 250
                                                                                                         Exhaust
 200                                                                                                     Door Work
                                                                                                         Fuel Water Sep
 150                                                                                                     Fuel Cooler
                                                                                                         Turbo Tube
 100
                                                                                                         Hood Bar
  50                                                                                                     Hood Prep
                                                                                                         Radiator Bar/Light Mast
   0                                                                                                     Oil Fill **
       Sub Assembly   Sta 2 Man 1    Sta 2 Man 2   Sta 3 Man 1   Sta 3 Man 2   Testing   Required Time




                                    (Remainder of page intentionally blank)
Engine Unit Module Project                                                  9/11

                                                     author: Russell Sims
                                                     date: May 28, 2008




                        Preliminary Assembly Flowchart



                        •Mechanical Assembly 3.12h
   Sub                  •Electrical Assembly .58h
                        •Coolant Assembly 2.48h
   Assembly             •Hood Assembly .53h




                        •Tank Assembly 1.72h
                        •Wiring 3.03h                                Meeting
   Station 2            •Hose Assembly 1.06h
                        •Tank Installation .52h                    Customer
                        •Exhaust .48h
                                                                    Demand

                        •Bottom Plates .5h
                        •Platforms .33h
   Station 3            •Turbo Tube .63h
                        •Oil Fill 1h
                        •Intake Radiator .72h




                        •Test the Engine Unit 2.5h
   Testing              •Minor Adjustments .5h
Engine Unit Module Project                                                 10/11

                                                    author: Russell Sims
                                                    date: May 28, 2008




               Feeding process flowchart (synchronization)




                    Click here to follow link to actual data.
Engine Unit Module Project                                                         11/11

                                                            author: Russell Sims
                                                            date: May 28, 2008



                     Needed manpower for each station and cell




                      Hours
Planned Takt
Time                    7.167


                       Total
                       work
                      content                     Capacity Balancing
                       time     Resource Resource available   loss
                      [hours]    needed allocated [hours]   [hours]
  Sub Assembly           6.7       0.9       2      0.0       -6.7
    Station 2           11.5       1.6       4      0.0      -11.5
    Station 3           11.2       1.6       1      0.0      -11.2
      Test               1.9       0.3       2      0.0       -1.9
             Total      31.3       4.4      9.0     0.0      -31.3

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Line Calculation Sample

  • 1. Engine Unit Module Project 1/11 author: Russell Sims date: May 28, 2008 Project Description Main Deliverables of the Project 1. To provide C9 and C13 engine modules to the SpeedLine at a rate to satisfy takt time during maximum customer demand cycles. 2. Engine Unit shall maintain a buffer to feed the SpeedLine of not less than 1 and no more than 3 engine unit of each type. Customer of the Project 1. Customer of this project is the SpeedLine in general and specifically station 2 of the SpeedLine. Scope of the Project 1. This project shall encompass all engine models produced for Lokotracks in the Columbia Manufacturing facility. 2. Current product mix consists of C13 Modules for LT200HP and C9 Modules for LT106. We are currently forecast to build LT1213 and LT1213S Lokotracks which will take a slightly Modified C13 Module. (Remainder of page intentionally blank)
  • 2. Engine Unit Module Project 2/11 author: Russell Sims date: May 28, 2008 Structure of the Project Time Study Make/Buy Anaysis Layouts Sub and assembly Balancing breakouts Project Classification 1. This Project is unclassified and contains no confidential data. Project Owner 1. LT Manufacturing Engineer is the owner of this project Project Manager 1. Russell Sims is the LT Implementation Project Manager. Required Human Resources (Internal) 1. Engine Module Assembly Team consisting of 1 team leader, five team members and a material services person. 2. Supervisor element
  • 3. Engine Unit Module Project 3/11 author: Russell Sims date: May 28, 2008 Required Human Resources (External) 1. Intern for data collection Other Required Resources 1. Material handling equipment, IT services, tools and tool boxes, communications devices, maintenance support. Product Mix Monthly Monthly Daily Annual average max. max. demand demand Daily average demand demand demand LT106 C-9 140 11.7 0.56 20 0.95 LT1213 / -S C-13 110 9.2 0.44 15 0.71 LT200HP C-13 100 8.3 0.40 25 1.19 Total demand 350 29.2 60 days Annual time available 220 hours Monthly time available 21 Total assembly process time 24 Planned takt timemin 5.03 hrs/month Time available in 1 shift 168 Calculated number of stages 4.8 Time available in 2 Selected number of stages shifts 336 (takts) 5 Time available in 3 shifts 504 hours Annual time available 1760 Monthly time available 168 Line takt timemin 5.03 unit/hour Line speedmax 0.20
  • 4. Engine Unit Module Project 4/11 author: Russell Sims date: May 28, 2008 Product Architecture Review Demand Rates & Available Time Monthly Daily Monthly Daily Annual average average max. max. demand demand demand demand demand LT106 C-9 140 11.7 0.56 20 0.95 LT1213/LT1213S C-13 110 9.2 0.44 15 0.71 LT200HP C-13 100 8.3 0.40 25 1.19 Total demand 350 29.2 60 days Annual time available 220 Monthly time available 21 hrs/month Time available in 1 shift 168 Time available in 2 shifts 336 Time available in 3 shifts 504
  • 5. Engine Unit Module Project 5/11 author: Russell Sims date: May 28, 2008 Line Design : Takt timemin and Line speedmax 1. Takt time is the pace of production to match the rate of customer demand. 2. Takt time is the heartbeat of the whole production system Formula: Monthly Annual average Takt timemin = Time available/Total demand demand demand LT106 C-9 140 11.7 Line Speedmax =1/Takt time LT1213/ LT1213S C-13 110 9.2 LT200HP C-13 100 8.3 Example: Total demand 350 29.2 Takt timemin = 1760 h/350 units =5.02 h hours Line Speedmax =1/2.03 h = 0.20 unit/h Annual time available 1760 Monthly time available 168 (Note) This line design calculation is based on production mainly in one shift) Line takt timemin 5.03 unit/hour Line Design Line speedmax 0.20 Product-specific high season demand rates Product-specific demand rate for materials Monthly Annual max. planning formula: demand demand LT106 C-9 Rate = Product Demand/days of planning 140 20 period LT1213/ LT1213S C-13 110 15 Example High Season Rate for LT106 C-9 LT200HP C-13 100 25 Rate = 20 pcs/21 days = 0.95 pcs/day Total demand 350 80
  • 6. Engine Unit Module Project 6/11 author: Russell Sims date: May 28, 2008 Annual Monthly average demand demand LT106 C-9 140 11.7 LT1213 / -S C-13 110 9.2 LT200HP C-13 100 8.3 Total demand 350 29.2 unit/hour Line speedmax 0.20 hrs/month unit/month Time available in 1 shift 168 33 Line outputmax in 1 shift Time available in 2 Line outputmax in 2 shifts 336 67 shifts Time available in 3 Line outputmax in 3 shifts 504 101 shifts Formula: Line outputmax = Available timemax x Line Speedmax Example: In 2 shift time available 336 h/month. Line speedmax=0, 20 unit/h (takt time 5.03 h) Max. Line output in 2-shift= 336 x 0, 20 = 67 units/month Needed daily run hours = Total demand / Line Speedmax Example: Demand 50 unit/month Needed run hours = 50/0.20=250 h/month = 11.9 h/day Two Shifts Needed During High Season
  • 7. Engine Unit Module Project 7/11 author: Russell Sims date: May 28, 2008 Fast and Slow Options 1. There are no fast or slow options currently available for the engine modules. We will revisit this subject if the need arises. Consumption Rate for Fast Options 1. There are no fast options currently available for the engine modules. We will revisit this subject if the need arises. Minimum Lead Time from Work Order to Assembly Work Order Recieved Engine Mounted on (SpeedLine) Lokotrack Minimum Lead Time 2.5 D Minumum Customer response time 3.5 D Split Minimum SpeedLine Lead Time into Sub-process Lead Times Work Order Recieved Engine Mounted on (SpeedLine) Lokotrack Minimum Lead Time 2.5 D 3 Stage production needed based on lead times and Minumum Customer response time 3.5 D throughput calculations Sub assembly Station 2 Testing Station 3 1.05 D .66 D .5 D .71 D
  • 8. Engine Unit Module Project 8/11 author: Russell Sims date: May 28, 2008 Preliminary Line Balancing 500 Engine warm-up/Hydraulic Test 450 Electrical Test Electrical connection 400 Hydraulic connection 350 Priming Deisel Hydraulic oil 300 Bottom Plates (2) Ball Valves (2) 250 Exhaust 200 Door Work Fuel Water Sep 150 Fuel Cooler Turbo Tube 100 Hood Bar 50 Hood Prep Radiator Bar/Light Mast 0 Oil Fill ** Sub Assembly Sta 2 Man 1 Sta 2 Man 2 Sta 3 Man 1 Sta 3 Man 2 Testing Required Time (Remainder of page intentionally blank)
  • 9. Engine Unit Module Project 9/11 author: Russell Sims date: May 28, 2008 Preliminary Assembly Flowchart •Mechanical Assembly 3.12h Sub •Electrical Assembly .58h •Coolant Assembly 2.48h Assembly •Hood Assembly .53h •Tank Assembly 1.72h •Wiring 3.03h Meeting Station 2 •Hose Assembly 1.06h •Tank Installation .52h Customer •Exhaust .48h Demand •Bottom Plates .5h •Platforms .33h Station 3 •Turbo Tube .63h •Oil Fill 1h •Intake Radiator .72h •Test the Engine Unit 2.5h Testing •Minor Adjustments .5h
  • 10. Engine Unit Module Project 10/11 author: Russell Sims date: May 28, 2008 Feeding process flowchart (synchronization) Click here to follow link to actual data.
  • 11. Engine Unit Module Project 11/11 author: Russell Sims date: May 28, 2008 Needed manpower for each station and cell Hours Planned Takt Time 7.167 Total work content Capacity Balancing time Resource Resource available loss [hours] needed allocated [hours] [hours] Sub Assembly 6.7 0.9 2 0.0 -6.7 Station 2 11.5 1.6 4 0.0 -11.5 Station 3 11.2 1.6 1 0.0 -11.2 Test 1.9 0.3 2 0.0 -1.9 Total 31.3 4.4 9.0 0.0 -31.3