Exploring How RTLS Can Begin to Reduce the 7 Wastes of Production

By Lyndsey Heavner, Manager, Operational Strategy at Ubisense

The concept of Lean Manufacturing is no longer just buzz terminology. Lean Manufacturing concepts are proven and practiced approaches to holistically improve operations through the streamlining of processes via the reduction of specific wastes. Coming from the Japanese philosophies of the Toyota Production System, the original categorization of "wastes" within production resulted in 7 Wastes - Transportation, Inventory, Motion, Waiting, Overproduction, Over processing, and Defects. (A helpful acronym to remember the 7 Wastes is “TIM WOOD”.) Without going into to much detail of what each of these wastes are, we can effectively say that having any of these wastes in a production facility adds up to one business issue: more money is tied up in goods, assets and labor than necessary. So, reducing the 7 Wastes means reducing costs, and in today's economy, that's big money.

Within the manufacturing sector, notably in large industrial equipment manufacturing arenas such as automotive, aerospace, etc., applying Lean Manufacturing philosophies can be challenging. Where do you start? How do you identify the areas to target for improvement projects? How can you quantitatively and qualitatively measure wastes? The use of Real-Time Location Systems (RTLS) can provide the automated, accurate visibility of process performance, asset usage, space usage, etc., that is needed to identify wastes and define improvement initiatives to reduce them. There are 2 key areas where Ubisense Location-driven manufacturing solutions can highlight the 7 wastes and enable process improvements - real-time process tracking and real-time asset tracking.

Real-time Process Tracking

Tracking parts or components as they move through an assembly process will provide visibility on a few of the mentioned waste areas. Let's start with Inventory. At a very basic level, real-time process tracking ultimately enables the accurate identification of all work in progress (WIP) in a factory. Visibility of WIP = visibility of inventory, both in progress part inventory and parts in stock. Lean philosophy is all about moving to single part flow and just-in-time manufacturing – i.e, reducing the ‘waste’ of on hand inventory. Having stock on hand - either pre-process parts, excessive work in process inventory, or finalized goods in stock – means more cash has been invested than necessary to keep the processes moving. High inventory levels are commonly a result of inaccurate or poor inventory visibility, causing (and also resulting from) poor demand planning (i.e., the “Bullwhip Effect”). This is exactly where real-time tracking of components can help! Using location information, it’s possible to begin to monitor and track part flow accurately, unveiling areas where unnecessary inventory build-up is occurring. Are there parts in non-value added areas - i.e, waiting to be processed? Are there finished goods building up in stock (Overproduction)? Is there a surplus of parts at 50% complete (preempting Overproduction)? As you can see, having accurate visibility of your process and inventory also starts to shed light on the other wastes as well.

Real-time Asset Tracking

The waste of Inventory is not just about part stock; it’s also about asset inventory, such as logistics media, specific tools or other equipment used to keep goods flowing through the process. Ubisense location-driven manufacturing solutions can also provide visibility of your asset inventory, allowing you to understand what further wastes you can reduce. Using location information gathered about tracked asset inventory, it’s possible to accurately analyse asset usage. Are assets waiting to be used, or are they used to their full capacity? With real-time tracking it’s possible to calculate the “down time” of assets and analyze if all the media, equipment, tools in stock are truly needed, which in turn can drive an inventory reduction. Additionally, real-time tracking of assets can reveal other wastes within operational processes that may not be evident until you actually see them. Think about logistic movements. Are transport flows as lean as they can be? How far are good transported and how often they are transported? Using historical location information, “spaghetti diagrams” can be built, depicting the travel paths of tracked asset. Seeing how assets are truly utilized enables the analysis of motion and transportation which paves the way for further waste reduction via flow optimization, and perhaps even plant layout optimization.

The few points that have been discussed are just starting to scratch the surface of how real-time location solutions can drive waste reduction and process improvements in manufacturing. Location information provides visibility, and visibility is necessary to begin to measure current the state of operations and effectively analyze areas where wastes exist.