The Knorr-Bremse Rail Vehicle Systems division's most modern European plant, employing some 1,000 people, is located in Budapest. A new building was constructed in 2010, which not only significantly increased the plant's capacity but also introduced new forms of production supply and control.
While the old factory still produced 6 days a week in a production organized according to the workshop principle, further bottlenecks were reduced with the construction of the new factory by investments, for example in an electroplating and painting line. A further decisive step in the direction of lean manufacturing was the conversion of the production principle to cell production. Through a continuous reduction of bottlenecks by means of value stream analyses and a close interlocking of the supply chain with the production system, the goal of a 5-day factory, which was issued by the management, could be achieved.
Highlights of the implementation
Results
Solutions of this kind are considered routine in the automotive sector, where high volumes are the norm. In the rail vehicle industry, however, where production tends to be geared towards small volumes or one-off production, this concept is an absolute novelty.
The most important element of the five-day principle is the drastic reduction of internal production throughput times. The production and work organisation processes have also been aligned with this. Knorr-Bremse Budapest was breaking new ground at the time. In the past, for example, the production of a block braking unit was expected to take 15 to 25 working days from the provision of the raw material to final assembly and testing. In the five-day factory, the entire production process has to be completed in five working days, which takes about 20 to 25 per cent of the time previously estimated. At the same time, the quantity of materials tied up in the process and thus the inventory values are reduced to a quarter of the original quantity.
The changeover to the new production process offers Knorr-Bremse's customers enormous advantages: customer orders are processed more flexibly and reliably than before, changes can be implemented more quickly, capacities are used optimally, and the efficiency of the supply chain has been improved. Last but not least, the use of state-of-the-art development techniques ensures that customers receive products that meet the highest quality standards.
The processes and system implementation at the old Budapest plant were based on classic MRP planning. Starting from the primary demand, the BOMs were exploded via the MRP run, requirements were planned and order proposals (planned orders and order requirements / delivery schedules) were generated. The aim was to produce in large batches. In doing so, mechanical production was mainly geared to the deadlines set by MRP and less to the planned assembly programme. The other side of the coin was that:
To achieve the objectives of the five-day factory, it was necessary to change system settings such as the lot-sizing procedure on the one hand, and to adapt the SAP tools for production planning and control to the objectives of the five-day factory and the planned Heijunka process on the other.
The graphic planning table was used for precise planning and control of the assembly and mechanical production. In the first step, the bottlenecks in the individual production lines in the assembly were analysed and realistic times were assigned in the work plans. This enabled finite planning of the lines. With the help of the graphical planning board, the individual assembly lines can now be optimally utilised, taking into account the actual capacity situation. Based on the scheduled orders, the requirements are then planned via the MRP and order proposals (planned orders) are generated. To ensure that only those parts are produced in mechanical production that will actually be assembled in the following days, only planned orders whose pegged requirements have actually been scheduled can be converted into production orders, i.e. a production date is actually planned in the assembly. The planning of the mechanical production also takes place via the graphical planning board in order to achieve a realistic utilisation of the machines.
So that the capacity planning table actually supports the Heijunka process and can be efficiently used in daily work, some adjustments were made. These could all be made using the customising function or by programming user exits. These were, in detail:
In order to achieve the goals of the 5-day factory in mechanical production as well, a transaction was designed and implemented that only allows planned orders to be converted into production orders if the requirements originators are actually scheduled in assembly and thus a concrete requirement exists and production is not only for stock. The functions of the graphical planning board described above are also used to some extent in mechanical production to enable optimal planning and control.
By implementing Heijunka in the 5-day factory based on SAP ERP ECC 6.0, the company has succeeded in reducing throughput time and inventories while increasing flexibility and delivery capacity. It has also improved transparency for all departments involved in the process, such as purchasing , scheduling, planning, production and sales, because the Heijunkaplanung can not only be displayed on a board in production, but can be accessed by anyone in the system and the effects of scheduling and rescheduling (date changes) are immediately passed on to everyone and are transparent. Implementing Heijunka with SAP tools also helps to react quickly and flexibly to changes in demand, especially in the automotive industry, where unit volumes are usually lower than in other industries.