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Valuation of increased production system performance by integrated production systems

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Abstract

Since the 1990s a transition from mass production systems to integrated production systems has been taking place. Realising the potential of integrated production systems to reduce costs by avoiding waste, more and more companies follow the example of Toyota and try to increase their production systems’ performance by applying lean elements and methods. However, the lack of a holistic methodology to forecast the profitability of the application of lean elements and methods impedes the justification of necessary investments. This paper presents an approach developed at the Institute of Production Science of the Karlsruhe Institute of Technology to valuate the increased performance of a production system by lean elements and methods. By simulating and optimising the analysed production system, the ideal combination of lean methods can be identified. Key performance indicators of the real and ideal states of the production system can then be used to quantify the effects of the ideal combination of lean methods.

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Abbreviations

CTI:

Cost–time investment

CTPs:

Cost–time profiles

e.g.:

Lat. exempli gratia—for example

i.e.:

Lat. in est—in particular

LESAT:

Lean enterprise self-assessment tool

KIT:

Karlsruhe Institute of Technology

KPIs:

Key performance indicators

SMED:

Single minute exchange of die

TPM:

Total productive maintenance

TQM:

Total quality management

VSA:

Value stream analysis

vs.:

Versus

wbk:

Institute of Production Science

5S:

Standardisation of workplaces

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Acknowledgments

We extend our sincere thanks to the Deutsche Forschungsgemeinschaft (German Research Foundation) for supporting this research project LA 2351/6-1 “Quantitative Analyse stochastischer Einflüsse auf die Leistungsfähigkeit von Produktionssystemen mittels analytischer und simulativer Modellierung” (“Quantitative Analysis of Stochastic Influences on the Performance of Production Systems with the help of Analytical and Simulative Modelling”).

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Correspondence to Annabel Jondral.

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Lanza, G., Jondral, A. & Drotleff, U. Valuation of increased production system performance by integrated production systems. Prod. Eng. Res. Devel. 6, 79–87 (2012). https://doi.org/10.1007/s11740-011-0359-1

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