A Production System for the auto parts industry with elements of Industry 4.0

Schmidt, Fabrício Carlos; Korzenowski, André Luis; Goecks, Lucas Schmidt; Gomes, Ismael Becker; Benetti, Vanderlei Giovani

doi:10.1590/0103-6513.20220005

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Sumário

Thematic Section - Production Engineering leading the Digital Transformation • Prod. 33 • 2023 • https://doi.org/10.1590/0103-6513.20220005 copy

A Production System for the auto parts industry with elements of Industry 4.0

Authorship SCIMAGO INSTITUTIONS RANKINGS

Abstract

Paper aims

considering that the fourth industrial revolution can be a primary engine for process innovation, this research proposes a 4.0 Production System applicable to the auto parts industry.

Originality

the study’s relevance is observed from the assimilation of practical issues with the scientific process for constructing a 4.0 Production System for the sector in question.

Research method

this research is structured from a real case study, proposing an artifact from Design Science Research.

Main findings

the results obtained provided a competitive advantage to the company, with a reduction of 23% in lead time, 16% in HM/Fuel Tank, 55% in WIP, and 38% in the total distance traveled by operators, in addition to an ROI of 9.22%.

Implications for theory and practice

the practical application of the artifact showed that its use is viable; however, to extract the maximum potential, it is suggested to insert it into the company's culture.

Keywords:
Mass production; Toyota Production System; Volvo Production System; Hyundai Production System; Operational Performance

Elements	Ford	Toyota	Volvo	Hyundai	Industry 4.0
Known as	Fordism / Mass	Toyotism / Lean	Volvisism/ Reflective / Socio-technical	Hyundaism / Modularization	Advanced Manufacturing / Smart Manufacturing
Mechanization	High	Medium	Medium	High	High
Engineering	Important	Important	Important	Priority	Priority
Workforce	Specialists	Specialists and Generalists	Specialists and Generalists	Specialists	Specialists
Standardization	High	Medium	Medium	High	High
Management	Pushed	Pulled	Pulled	Pushed	-
Flexibility	Low	High	High	High	High
Ergonomics	No	Yes	Yes	No	Yes
Improvement	Leaders	All involved	All involved	Engineers	Specialists
Operator autonomy	Low	Medium	High	Low	Low
Product modularization	No	No	No	Yes	Yes
Employee appreciation	Low	High	High	Low	Medium
Suppliers relationship	Multiple suppliers and choice by cost	Long term and synergistic	Long term and synergistic	Short term and focus on cost reduction	Short term and focus on cost reduction
System principles	Low cost and high production	JIT e Autonomation	Reflective and socio-technical	Automation-oriented modularization and engineering	Smart Factories and Products

Process Steps	Outputs
Awareness of the problem	Design a production system considering the practices of previous methods and systems that allow designing Industry 4.0, showing a path for companies to evolve towards Industry 4.0;
Suggestion	Analysis of the available literature to build the Artifact design to propose a method for implementing a Production System for the auto parts industry with elements from Industry 4.0 and with the best practices of production systems;
Development	Construction of the proposal of the conceptual model and the artifact now called method for implementing a production system for the auto parts industry;
Evaluation	Practical application of the proposed artifact and evaluation of the process and its results;
Conclusion	Presentation of the proposed artifact for analysis regarding the research objective.

Training	Output from each training
1. Introduction to lean mindset	Initial training where the solution is to strengthen the team to pursue the project's objectives.
2. Production System Academy	Hands-on training in a laboratory where the output is to build miniature tractors, make four production runs, and advance in each one with production management tools.
3. ValueStreamMapping	Know the process flow, identify opportunities for improvement and project a new future state, which will be targeted by the project team (which may be in conjunction with the simulation).
4. A3 Management	Project contract, contemplating the objectives and goals that the team will pursue
5. Workplace organization	Implementation of organization and cleaning routines in the area and standardization.
6. Daily Management	Aid chain implementation, production analysis framework (planned vs. realized), Andon and Kamishibai.
7. Quick tool change	Mapping internal and external setup by machine, in-sight Management of instruction, and monitoring tool change time.
8. Kaizen and Troubleshooting	Problem-solving method, Ishikawa, five whys (practiced in Genba).
9. Multifunctionality	Construction of the staffing table and versatility matrix, implementation of job rotation, and spot management to monitor qualifications.
10. Stabilizing production	Table of production capacity per machine, Pareto chart of problems per machine, raw material supply routines.
11. Continuous flow and standardized work	Review daily management training outputs, evaluation of new layout opportunities, and construction/improvement of standardized work instructions.
12. Pull system and production leveling	Kanban implementation.

Classification	Performance	Description
Gold	91% to 100%	Excellence-acting sustainably^* * Tools implemented and self-managed by the leadership;
Silver	81% to 90%	Requires low complexity improvements^ Strengthen training and monitoring of employees.
Bronze	70% to 80%	Stabilized but unsustainable processes*
Back-to-basics	0% to 69%	Not able to move forward, needs to go back to bases and stabilize the operation

Indicator	Calculate monthly gain	Annual gain
Lead time	It is the main indicator, considering the reduction in operating times, reduction in setup times, exclusion of operations from the process, and reduction in work center costs. It is calculated by the unit cost of the improvement multiplied by the monthly demand.	Unit improvement gain multiplied by 12-month demand.
WIP	Reduction in the number of intermediate stocks. It is calculated by comparing the initial quantity with the final amount of the project.	Earning value (initial x final) multiplied by 12 months.
TD	Layout improvements. Calculated per reduced m².	Reduced m² multiplied by 1,000*
HM/Fuel Tank	Effort/outcome-related gains. Calculated by the implemented improvements multiplied by the number of employees at the project beginning, which is multiplied by 3,000^* * Benchmarks.	Monthly gain value multiplied by 12 months

	Phase	Objective	Steps	Description
1	Opportunity identification	Convert an existing factory into a factory of the future (Industry 4.0)	Manufacturing layout	The manufacturing system layout must be evaluated and reorganized.
			Transport standardization	Use of automated transport technologies (AGVs).
			Reduce/Eliminate setup time	Improvements in the fixing structure and transport in the robotic welding station.
			Tank traceability	Track product movement at the factory and calculate the lead time (RFID, QR Code, or TaggenBeacon).
			Inventory reduction	Work on approaching the machines and directing the tanks to continuous flow (layout improvement).
			Integrate maintenance	Inclusion of technologies for monitoring equipment to predict preventive/predictive maintenance.
			Even and balance	Planning training for the team for a continuous flow and standardized work.
			Automate manual processes	Collaborative robots to assist in finishing routines, sharing the exact location with operators.
			Prediction technologies	A computational system for planning and dynamic production optimization (Big Data and Analytics).
2	Team structuring and meetings	Professionals who make a difference to the project and also be the change agent in their area of origin	Bi-monthly meetings	The sponsor, project manager, and Lean specialist present the indicators to the company's board and president.
			Monthly Meetings	The project manager and Lean specialist prepare a summary presentation of the project status and take it for the approval of all managers on investment needs.
			Fortnightly Meetings	The project manager, Lean specialist, and group coordinators come together to check the progress of the work and define the strategies for conducting the project.
			Weekly meetings	Group coordinators meet with their teams to conduct actions and update project pending issues.
			Daily Meetings	Follow what was planned by the production coordinators at the beginning and end of the work shift.

Scenario	LEAD	WIP	TD	PRO	SETUP	HM	TOPSIS factor	Ranking
Current	6.0	50	329	988	74.5	3.3	--	--
1	5.9	132	454	1087	60.4	4.3	0.109	12
2	6.2	47	293	988	72.2	3.3	0.723	11
3	5.9	47	289	961	74.4	3.4	0.729	10
4	6.1	47	270	967	70.9	3.3	0.736	9
5	5.6	44	254	990	71.4	3.2	0.791	7
6	5.2	45	244	1022	68.5	3.1	0.823	6
7	6.1	41	331	1121	58.6	3.3	0.745	8
8	5.5	39	239	940	68.,4	2.9	0.833	5
9	5.4	34	235	999	51.9	2.8	0.902	2
10	5.4	38	232	939	70.4	2.6	0.840	4
11	5.5	32	208	938	69.7	2.8	0.853	3
12	4.9	36	216	977	51.8	2.6	0.931	1
Indicators				Description				Weight
Lead Time (LEAD)				= sum of operation times + sum of waiting times				30%
Work in Process (WIP)				= raw material used - units produced				15%
Traveled Distance (TD)				= sum of the distances covered by the operators				15%
Production (PRO)				= number of fuel tanks produced				15%
Total Setup (SETUP)				= sum of setup times performed				15%
Hour man per fuel tank produced (HM/Fuel Tank)				= Hour man / fuel tank produced				10%

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