The Josy manufacturing simulation for greater profit and higher ROI

The Josy simulation is described so that you can use it using smartphones.
The simulation is a manufacturing line (you can create other routings with more phones).
It is Theory of Constraints oriented, but whatever your philosophy you can still use Josy.

Play the simulation several times. Initially let participants 'play' as they do in their factory; follow this with a series of improvements to the process.

Evaluate the results .... answer the question why a process is better than the others.

1. The Josy* Manufacturing Simulation How much can you make in 6 minutes of simulation time? *AGI UK (David Marx) developed the original version – I think

2. The Josy Manufacturing Simulation The original version uses a game specific timer. The smartphone version uses the smartphones time function. The simulation rules are identical. Sim 2a

3. The Josy Manufacturing Simulation The original version uses a game specific timer. The smartphone version uses the smartphones time function. The simulation rules are identical. Sim 2a

4. Workstations Workstation 1 has unlimited material. It never runs out. The rest depend on deliveries from their feeding workstation. Only full pallets are transferred. The timer shows 1min 30 sec. That is too long. Set machines with times between 3 and 10 sec. Think about using a different colour (white or red) for the 1st unit of production (here yellow) to time progress. Sim 2c

5. Your First Model Factory Sim 2d

6. Participants Guides and Observers. Business owner Consultant Customer If necessary 1 person can be all 3. Materials manager Releases material to production 4-8 (here 6) workers that operate the machines 1 Controller & QC Documents time – start and end times. Controls inventory. Production manager Assigns people Customer – complains about late deliveries. Sim 2e

7. Run 1 Target : produce 65 units within 6 minutes. One coloured plastic cube = 1 unit. Every machine has some variability – due to the 6 players. 1 st unit is white – so we can measure progress and the time to the warehouse. QC checks every 5 th unit. The machine 4 worker brings the item to QC for checking. Customers and the boss complain. They cause delays for the worker; he must listen to the boss. Product is moved in 2 pallet units (5 units per pallet) Sim 2f

8. Results Run 1 WIP 1 is the WIP between machines 1 & 2. FG = Finished Goods Quantity Fi = Total inventory after the constraint White LT = The time the white unit takes between start and FG. Stop and measure every 60 sec. (Launch a white unit every 60 sec. Measure lead-time changes.) Sim 2f Time WIP 1 WIP 2 WIP 3 WIP 4 WIP 5 FG FI c White LT-1 60 sec 120 sec 180 sec 240 sec 360 sec

9. Results Run 1 Why did we not produce 65 units? How much WIP is there in the system after every 60 seconds? Why? How long did it take for the white unit to be finished. The following white units? What is our production lead time? What is the touch time? (The total transformation time all machines.) What can we do to improve? Sim 2g

10. Discussion Run 1 Why did we not produce 65 units? How much WIP is there in the system after every 60 seconds? Why? How long did it take for the white unit to be finished. The following white units? What is our production lead time? What is the touch time? (The total transformation time all machines.) What can we do to improve? Sim 2g

11. Run 2 – First Improvements Identify the constraint. Machine ?? Decide how to use the constraint. QC moves to machine 4 (the constraint). QC protects machine 4 from, disturbances & starvation. Train machine 4 personnel. Our goal remains 65 units in 6 minutes. The same conditions as Run 1. What result do you expect? Sim 2h

12. Results Run 2 Sim 2i Run 1 Time WIP 1 WIP 2 WIP 3 WIP 4 WIP 5 FG FI c White LT 60 sec 120 sec 180 sec 240 sec 360 sec Run 2 Time WIP 1 WIP 2 WIP 3 WIP 4 WIP 5 FG FI c White LT 60 sec 120 sec 180 sec 240 sec 360 sec

13. Discussion Run 2 Why did we not produce 65 units? How much WIP is there in the system after every 60 seconds? Why? How long did it take for the white unit to be finished. The following white units? What is our production lead time? What is the touch time? (The total transformation time all machines.) What can we do to improve? Sim 2j

14. Run 3 – Further Improvements How do we prevent more and more WIP? Little’s Law relates the avg. no. of items in a system to the avg. arrival rate & the avg. time they spend in the system. L= λ× W ; L  = avg. no. of items) in the system (WIP). λ   = avg. rate at which items enter the system. W  = avg. time items are in the system (or "cycle time") Choke release. Minimise WIP? Less WIP = less time in the system. Should we give it a try? Sim 2k

15. Run 3 – Set Up Sim 2l Raw- Materials Material Release Machine 1 Machine 2 Machine 3 QC @Machine 4 Machine 6 Finished Product Machine 5

16. Results Run 3 Sim 2m Run 1 Time WIP 1 WIP 2 WIP 3 WIP 4 WIP 5 FG FI c White LT 60 sec 120 sec 180 sec 240 sec 360 sec Run 3 Time WIP 1 WIP 2 WIP 3 WIP 4 WIP 5 FG FI c White LT 60 sec 120 sec 180 sec 240 sec 360 sec

17. Discussion Run 3 Did we produce 65 units in 6 minutes? How much WIP is there in the system after every 60 seconds? Why? How long did it take for the white unit to be finished. The following white units? What is our production lead time? What is the touch time? (The total transformation time all machines.) What can we still improve? Sim 2n

18. What is it worth? How much faster did we produce? How can we use this? How much more did we produce? How can we use this? Did (or would) reliability improve? If we produce and sell 35% what happens to profit and ROI? How much more profit and ROI would be typical? Let’s assume the following as typical: Sales 100% Variable Cost 50% Fixed Cost 42% Profit% Sim 2o

19. Financials; Fixed Cost is Constant. WHY? Before After Sales 10’000 13’500 Variable Cost 5’000 6’750 Gross Margin 5’000 6’750 Fixed Cost 4’200 4’200 Profit 800 2’550 Return on Sales 8% 18.9% Sim 2p