Language & Region
Knorr-Bremse

The "5-day factory": A unique recipe for success

Knorr-Bremse Rail Vehicle Systems

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.

At a glance

Highlights of the implementation

  • Company-wide coordinated, smoothed and feasible production programmes
  • Reduction of throughput time in the entire supply chain
  • Planning table

Results

  • Processing of customer orders is more flexible and reliable
  • Optimal use of capacities
  • Improved efficiency of the supply chain

CONSILIO... expert advice on lean manufacturing.

Andreas Meinzer, Head of Business Process Services Knorr-Bremse IT Services GmbH

The five-day factory

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.

Heijunka - definition

Heijunka (平準化) is a term from Japanese production concepts.

Heijunka is about the extensive harmonisation of the production flow through quantitative balancing. It is a continuation of Heikinka, the levelled production, in which the already fixed production cycle is repeated more often than once a day. Without levelling, a Synchronised Production System cannot be created. Queues and thus idle and transport times should be avoided as far as possible with Heijunka. A prerequisite for this is continuous flow manufacturing with short transport routes. The concept is particularly important in view of the complex, multi-level production. The respective bottlenecks have a limiting effect on the whole system (law of compensation in planning) and thus simultaneously create waste in all other parts.

Source: Wikipedia

Starting point

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:

  • Too much was produced too early, resulting in excess production.
  • The formation of large batches subsequently led to capacity bottlenecks and reduced flexibility in production. (Model mix production)
  • A lack of object dependencies between component production and final assembly led to overproduction at the component level.
  • Unexpectedly high demand in certain periods led to capacity overload at the supplier and thus to a lack of component availability.
  • Increased effort for capacity levelling
  • High effort in control and schedule tracking. No stable process chains.
  • Lack of production resources and tools availability when order sequences change.

After more than five years of partnership and competent cooperation in the SAP area, I am happy to confirm the high professional and social competence of the Consilio employees. The employees of CONSILIO GmbH have successfully supported us in partnership and competent cooperation in the implementation, optimisation and worldwide rollout of the SAP template.

Andreas Meinzer, Head of Business Process Services Knorr-Bremse IT Services GmbH

Implementation

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.

The graphical planning board

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:

  • Customising of customer-specific views for assembly planning
  • Requirements source and confirmed date (customer) in the tabular part of the capacity planning table
  • Notes on whether long texts exist for a production order
  • Information texts for the bars and scroll areas were extended to display more and more meaningful texts in the graphic objects
  • Change in blocking behaviour, so that on the one hand processing in the graphical planning board is possible and on the other hand the further processes such as confirmation are not slowed down
  • Automatic unfixing of planned orders during planning
  • Knorr-specific sequence check when dispatching operations
  • Knorr-specific validations when changing work centre (permitted work centres)
  • Change in colour control for bars so that the planner can easily and quickly see the processing status of a production order (incl. WM provision).
  • Checking the availability of production aids for the order

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.

CONSILIO's solution to the above business problem

  • Initial capacity smoothing as soon as the customer order is received by checking against quotas
  • Optional tabular planning board for medium-term capacity smoothing
  • Detailed planning and sequence changes with preconfigured graphical planning board
  • Purpose-oriented graphical planning boards for end products and components
  • Optimal colour display of orders depending on the order status.
  • Preconfigured order conversion program for component level. Planned orders are converted into production orders at component level only after the final products have been scheduled.
  • Display of pegged requirements in the graphical planning board as an aid for order sequencing.
  • Dynamic availability check of production aids for scheduled orders.

Result

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.

[Translate to English:] Abbildung einer Kupplung von Knorr-Bremse
  • Consideration of capacities as soon as the customer order is received
  • Check against quotas
  • Optimal stock levels across all scheduling levels
  • Helpful tools for order sequencing
  • Optimal order display in the planning board using colour coding
  • Optimal production flow without waste

Knorr Bremse – Rail Vehicle Systems

Knorr-Bremse is one of the leading manufacturers of braking and onboard systems for rail vehicles. Its product range includes complete braking systems for all types of rail vehicles, as well as automatic door systems, air conditioning systems, control components and windscreen wipers. The division is represented in 25 countries around the globe with production, sales and service locations.