Identifying the Bottleneck

in GM Assembly Systems

Kevin A. Kohls, P.E.

Director - Technical Systems and Data Analysis
General Motors North America
Quality Reliability & Competitive Operations Implementation

TOC World presentation.ppt / kak 05/19/00 02:50 PM 1

 Background
•  Founded in 1908
•  World's largest automotive corporation and full-line
vehicle manufacturer.
•  Employs more than 388,000 people
•  Partners with over 30,000 supplier companies
worldwide.
•  Largest U.S. exporter of cars and trucks
•  Manufacturing operations in 50 countries, has a
global presence in more than 200 countries.
•  Has substantial interests in digital communications,
financial and insurance services, locomotives, and
heavy-duty automatic transmissions.
TOC World presentation.ppt / kak 05/19/00 02:50 PM 2
 Before TOC in GM Manufacturing

•  New or renovated plants started up

poorly.
•  Efforts to improve throughput were
generating results slowly.
•  Large investments were made in the
plants to try and improve throughput.
•  Overtime was extensively used to try
and keep up with demand.
•  RONA and profit targets were far
below expectations.

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 History of TOC in Production
•  Started in GM in1980 in Saginaw Division with a
product call OP.
•  GM develops C-Thru bottleneck identification tool in
1984 (Now called C-More).
•  First successful implementation of C-Thru in 1987 at
Detroit/Hamtramck.
•  A divisional group was then started, which has grown
from a few people to over 50 at corporate level.
•  Other active groups in Powertrain, Supplier
Development.

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 Alfred Sloan
... we made the assumptions of the
business process itself explicit. We
presumed that the first purpose in making
a capital investment is the establishment
of a business that will both pay
satisfactory dividends and preserve and
increase its capital value.
The primary object of the corporation, therefore, we
declared was to make money, not just to make motor
cars. Positive statements like this have a flavor that has
gone out of fashion; but I still think that the ABC s of
business have merit for reaching policy conclusions.
from My Years with General Motors
TOC World presentation.ppt / kak 05/19/00 02:50 PM 5
 Comparison of Systems

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 Assembly Systems

Automotive assembly systems tend to be large,

serial, highly balanced (all the cycle times and
downtimes tend to be similar), with very small (0-1)
job buffers on the floor, and small buffers overhead
between systems. Finding the bottleneck in these
tightly coupled systems is difficult.

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 Bottleneck Identification Problems

•  Downtimes are short

–  so an observer needs to be near the workstation to
determine why it went down.
–  Looking for inventory here doesn t work.
•  There is significant blocking and starving.
–  Thus, the station is not running, but there is nothing wrong
with it.
•  The bottleneck may not be in the same place from
shift to shift
–  although it tends to stay in the same place week to week.

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 Bottleneck Identification Problems

•  Stations that have a small amount of downtime, but

are in an area of no buffers may turn out to be the
bottleneck.
•  Stations with high downtimes, but that are fast and
have buffer may be perceived to be the bottleneck,
but are not.
•  Thus, there may be conflict in the plant over the
bottleneck location.
•  We needed a better way!

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 Solution - C-More
C-More is a GM Research developed proprietary
software tool that predicts throughput, identifies the
bottleneck and quantifies its impact, and can determine
the best locations for buffers in a manufacturing system.

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 Causing the Change

•  Training is the key. We have courses in Constraints

Management, C-More (basic and advanced), and
GM s Throughput Improvement Process.
•  We distribute Goldratt books throughout GM without
charge to individuals (The Goal, La Meta, The Race,
It s Not Luck, Critical Chain, etc.)
•  We install data collection in the plants to drive C-
More.
•  We do direct training with a plant that is installing this
process or has a new manufacturing system.

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 Training Example
Overhead Buffers

1 2 3 4 5 6 7 8 9 10 11

Workstations Floor Buffers

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 Data
# MCBF MTTR JPH Buff Cycle Trgt SAA Down
1 92 4.3 58.7 -1 61.3 60 95.7% 383
2 58 1.7 64.8 -1 55.5 60 97.0% 261
3 86 2.7 59.6 -1 60.4 60 97.0% 264
4 76 0.9 57.1 -1 63.0 60 98.9% 101
5 100 3.3 59.7 -1 60.3 60 96.8% 281
6 94 0.2 56.8 15 63.3 60 99.8% 14
7 62 2.8 64.0 5 56.3 60 95.4% 403
8 398 0.3 56.1 5 64.1 60 99.9% 6
9 88 0.2 59.6 1 60.4 60 99.7% 24
10 15 2.5 56.5 -1 63.7 60 86.4% 1203
11 24 1.0 60.0 -1 60.0 60 96.0% 353

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 Sample C-More Report

C-More Bottleneck Report

3
2.5
2
1.5
1
0.5
0
7

2
W 0
11
S_

S_

S_

S_

S_

S_

S_

S_
1
S_

S_
W

W
W

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 5 Steps & C-More
2. Exploit the Constraint:
Add buffer between 10 &
1. Identify the 11, or improve 11 to reduce
Bottleneck C-More Bottleneck Report
blocking to the bottleneck.
3
3. Subordinate the non-
2.5
constraints - its clear that
2
1.5
working on any station besides
1 10 or 11 will have no impact.
0.5
0
7

2
W 0
11
S_

S_

S_

S_

S_

S_

S_

S_
1
S_

S_
W

W
W

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 Elevate
4. Elevate the constraint - Workstation 10 fails
frequently and is slow. Pareto charts from
Monitoring Systems or from time studies.
Solutions are typically not difficult to develop.
# MCBF MTTR JPH Buff Cycle Trgt SAA Down
5 100 3.3 59.7 -1 60.3 60 96.8% 281
6 94 0.2 56.8 15 63.3 60 99.8% 14
7 62 2.8 64.0 5 56.3 60 95.4% 403
8 398 0.3 56.1 5 64.1 60 99.9% 6
9 88 0.2 59.6 1 60.4 60 99.7% 24
10 15 2.5 56.5 -1 63.7 60 86.4% 1203
11 24 1.0 60.0 -1 60.0 60 96.0% 353
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 Restudy
5. Restudy - or, in this case, predict the
location of the next bottleneck.
C-More Bottleneck Report

1.4
1.2
1
0.8
0.6
0.4
0.2
0
_1
_5
_3
_2
_4

W _6

_9
_7
W 0

W 1
_1
_1
S
S
S
S
S
S

S
S
S
S
W
W
W
W
W
W

W
TOC World presentation.ppt / kak 05/19/00 02:50 PM 17
 Typical Training Results

Impact on the Bottom Line

4.00
Best Guess
3.50
Profit ($ Millions)

C-More/MTTR
3.00 Cumlative
2.50
2.00
1.50
1.00
0.50
-
1 2 3 4 5 6 7 8 9

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 Buffer Analysis
JPH Increase from Adding Buffers

53
52.5
52
51.5
JPH

51
50.5
50
49.5
49
3

1
10

10

10

10

10
e
as
B

Station

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 Production
Evaluate
Identify
Pull
Plant Floor
Collect Data
Monitoring
C-MORE
Analysis Simulation
Team
Plan/Select
Meetings
Plant
Implement Personnel

Evaluate Track
Throughput

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 Identify the Goal - Production
Key factors in selecting plants
for Throughput Improvement.

•  Demand exceeds capability.

•  Inability to make schedule.
•  Excessive overtime & premium
shipping.
•  Willingness to change.
•  Data collection capability.

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 Data Flow
Monitoring TIP Report
PLC System Server Reporter 12

10

PC
8

DB 2

0
Sta 10 Sta 20 Sta 30 Sta 40 Sta 50
Amount of Data

Real One shift or less

Time Daily/Weekly

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 Data Collection Issues at GM
•  All data is wrong - some of it s useful.
•  Data is being collected to find the
bottleneck in the plant, but can also be
used for simulation of future systems.
•  C-MORE analysis and data rarely
matches our perceptions, unless we are
willing to go down to the floor and stare
at one workstation for at least a shift.
•  Perceived need to micro-analyze the
data - challenge its validity instead of
attacking the problem.

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 Analysis - Production

•  C-More for finding bottlenecks, setting priorities, basic

what-ifs.
•  Add Selling Price, Raw Material Costs, Operating
Expense to help determine Net Profit impact.
•  Emphasize that buffers, while Non-Value Added,
can be Net Profit Added if properly located.
•  Simulation for production strategies, detailed what-
ifs.
•  Use Pareto analysis & delay studies for breakdown of
problems on the Bottleneck.

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 Implement/Evaluate - Production
•  Insure the actions plans are Action Plans
recorded, and their progress is • Install locator
tracked. •  Ezman 4/1/93

• Contain tab damage

•  Bottleneck changes generally have •  Jones 4/15/93

priority after health, safety, and Throughput

quality issues (These are 80
necessary conditions ). 60
•  Productivity suggestions can now be
40
effectively evaluated.
20
•  Work on overtime, then operating
expenses, and then inventory after 0
throughput goals are obtained.
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 Team Meetings - Production

•  Appoint Champion of overall process.

•  Appoint TIP Coordinator.
•  Hold team meetings at floor level to resolve
problems.
•  Involve operators & skilled trades in meetings.
•  Bring C-MORE results, Pareto of faults to the meeting
to help prioritize resources.
•  Use five step process for problem solving.

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 Status in GM

•  To date Net Profit improvements,

validated with internal customers,
exceeds $2 billion.
•  All GM assembly plants have been
allocated a throughput improvement
coordinator position.
•  Impact is large, so even having a few
action plans focused on the
bottleneck yields results.

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 Current Status

•  Have one Throughput Coordinator position in every

Truck and Car plant.
•  There are 56 engineers working in or around this
area of data collection, bottleneck analysis,
bottleneck resolution, or new system design.
•  TOC classes are taught as part of the General Motors
University Curriculum. As of 6/9/2000, over 600 of our
GM people have attended a 2-day course.

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 Relentless Pursuit of the Constraint

•  While we were learning how to improve throughput

once that plant was running, it became apparent that
the root cause was in process design. Designs for
new manufacturing systems were not capable of
reaching throughput targets.
•  So, were started to pursue the constraint into the
design world....
Manufacturing
Engineering

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 Design of Manufacturing Systems

Manufacturing: A series of material

handling steps we occasionally
interrupt with value-added
operations

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 Data Problems in Design
This is a technique I
learned in my college
engineering labs -- if
you don t get the
right answer,
Simulation Data keeping changing the
Sta. Speed Downtime data until you do!!
1 60 5% 3% 1%
2 65 6% I can justify it, because we re
3 70 5% going to perform better at our
4 65 5% plant. We have better training,
better PM, and all of our children
are above average!
TOC World presentation.ppt / kak 05/19/00 02:50 PM 31
 Design Production
Portfolio, Evaluate
Identify
Centers Pull

Collect Data
Phase 0 DATA Plant Floor
Database Monitoring
MODELS
C-MORE C-MORE
Analysis Simulation Simulation
Review Team
Plan/Select
Meetings Current Meetings
Problems Plant
Implement Designers
Personnel

Evaluate New Track

Layout Throughput
Protect Throughput
TOC World presentation.ppt / kak 05/19/00 02:50 PM 32
 Data for Future Designs
Monitoring TIP Data & Report
PLC System Server Reporter 12
# MCBF MTTR JPH
10
1 92 4.3 58.7

PC
8 2 58 1.7 64.8
6 3 86 2.7 59.6
4
4 76 0.9 57.1

DB
5 100 3.3 59.7
2
6 94 0.2 56.8
0 7 62 2.8 64.0
Sta 10 Sta 20 Sta 30 Sta 40 Sta 50
8 398 0.3 56.1
9 88 0.2 59.6
10 15 2.5 56.5
11 24 1.0 60.0

# MCBF
1 92
MTTR
4.3
JPH
58.7
Class MCBF MTTR JPH
2 58 1.7 64.8
101 90 4.3 60
PC
3 86 2.7 59.6
4 76 0.9 57.1
5 100
6 94
3.3
0.2
59.7
56.8 102 60 1.7 60
7 62 2.8 64.0
DB
8 398
9 88
10 15
0.3
0.2
2.5
56.1
59.6
56.5
201 90 2.7 60
11 24 1.0 60.0
203 75 0.9 60
Multiple Plants Phase 0 Database
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 Results
•  All simulations for GM NA Car & Truck plants use the
Phase 0 data base, if data is available.
•  Designers are not allowed to modify data unless they
can demonstrate that there is better data to be had.
–  More up-to-date
–  Matches their process more closely
•  If there is a belief that a modification to a current
process will lead to improved performance, that
process must be modified and validated in a current
running plant before the data is changed.
•  Poor performers are noted in Phase 0 database and
taken to Engineering for redesign.
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 Results
•  Our latest GMT800 truck plant designs have
performed much better, and have not required the
massive injections of investment required in the past
to improve throughput.
•  These plants accelerated up their
throughput curves more quickly than
past plants.
•  Loss of net profit from not being able
to supply these highly profitable
trucks was avoided.

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 Relentless Pursuit of the Constraint

•  Designs were performing better, but the design

process still appeared to be in chaos.
•  So, were started to pursue the constraint into the
policy & measurement world....

Manufacturing Manufacturing
Engineering Management

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 Typical Design Review Meeting
R LD CLA S S!! TOO MUCH FLOOR SPA
KE I T WO CE!!!
MA

O R Y !!
VENT
CH IN
O MU
TO

CUT HEADS!!
TOC World presentation.ppt / kak 05/19/00 02:50 PM 37
 A Few Conflicts...

Commonize your designs Innovate your designs.

Balanced Systems Unbalanced Systems

Reduce Investment Add Flexibility

Cut Costs
Reduce Floor Space

TOC World presentation.ppt / kak 05/19/00 02:50 PM 38

 Conflict Results
•  The inability to resolve these conflicts in design
strategies leads to our Undesirable Effects:
•  Finger Pointing
•  Poor Teamwork
•  Wasted meeting time
•  Distrust between groups
•  Divergent efforts
•  Silos
•  Empire building
•  We know how to do this, they don t.
•  etc.
TOC World presentation.ppt / kak 05/19/00 02:50 PM 39
 Can Find a Better Way?
•  Can TOC concepts help us find a better way -
determine a best, overall design?
•  Can we determine an overall optimization measure,
once our necessary conditions have been met?
•  Can we teach the organization how to use it?

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 TOC & Manufacturing Design

What to Change?
•  TOC helped us to determine that the local
optimization paradigm was a root cause. Each part
of the organization was trying to hit their local,
stretch targets, hoping that would improve the
bottom line.
What to Change to?
•  Take a global optimization approach.
•  Use RONA & Net Profit as measures for global
optimization.

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 Design Cloud
Improve every
Put our efforts into
element that goes
optimizing every
into the
aspect of the
Improve the manufacturing
system.
performance of system.
GM s
manufacturing
systems. Improve only those
Put our efforts into
elements that
optimizing the
improve the overall
system as a whole.
system.

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 Developing Solutions

•  How are we going to obtain the needed consensus

and active collaboration to implement this solution?

•  Obviously, we have to play a game!

–  Go to groups in manufacturing design who are in crisis.
–  Have them verbalize their current situation.
–  Convince them their current efforts will not change the
situation.
–  Demonstrate a better method.
–  Apply to their design.

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 Design Game

•  Ask the question, What are GM s obstacles to

successfully designing manufacturing systems?
•  As in the TOC class, we take their list of obstacles
and then eliminate them.
•  Give them a scenario with perfectly accurate data,
clear expectations, with perfect employees, no
product problems, etc.

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 Design Game Scenario

Problem
•  Design the optimal manufacturing line. It should be
world class in every measure.
•  There are 7 station types plus a conveyor. There are
five possible choices for each station type and the
conveyor.
•  Add buffer as required.

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 Mandates
•  Meet the budget!
•  Serial Lines are Synchronous and allow for better
quality!!!
•  Create your own targets based on actual data.
•  Since you create the above targets you should have
no trouble meeting them.
•  Move the company towards World Class in every
measure!!
•  Minimize Buffers & Inventories - NVA
•  Keep Operating Expense Low.
•  Keep downtime to a minimum!!
•  Keep Scrap to a minimum!
•  Don't create waste by overspeeding machines.
TOC World presentation.ppt / kak 05/19/00 02:50 PM 46
 Setting World Class Targets
Scrap Rates
No X s! Players set
3
their own
Red X
2.5 targets, and
get Yellow
Scrap Rate in p ercen t

or Red
2

Yellow X
1.5
X s for
1 each
machine
that is
0.5

0
Close (Yell
A100

A300

A500

C100

C300

C500

D100

D300

D500

F 100

F 300

F 500

I100

I300

I500
B100

B300

B500

E100

E300

E500

ow)or Way
Target setting strengthens the Over (Red).
local optimization paradigm.
TOC World presentation.ppt / kak 05/19/00 02:50 PM 47
 Setting Targets

•  Players set targets for Scrap, Investment,

Operating Expense, Overspeed, Stand
Alone Availability (S.A.A.), and Inventory
(Buffer).
•  They must meet their budget
requirements, which is a stretch target.
•  It all must fit into the space allowed. For
this example, the system is land-locked,
so adding more floor space is not an
option.

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 Decisions, Decisions
Model Sec/Unit Units/ Proc Cycl. Tm Spd(jph) MCBF MTTR Scrap(% )
A100 0.65 88 57.05 63.1 1476 8 0.12
A200 0.69 88 61.02 59 2205 24 0.08
A300 0.70 88 61.64 58.4 720 18 0.38
A400 0.66 88 57.69 62.4 348 34 0.39
A500 0.72 88 63.16 57 560 11 0.42

Model I(1000's) OE(1000's) S.A.A. S.A.T.(jph) Cost/job* Sq Feet

A100 802 2 0.994 62.67 1.11 5625
A200 582 9 0.989 58.33 1.76 10000
A300 487 17 0.976 56.80 2.67 7500
A400 344 18 0.908 56.42 2.64 12500
A500 192 16 0.982 55.72 2.23 15625

TOC World presentation.ppt / kak 05/19/00 02:50 PM 49

 One Best Design?

•  Given that there are 5 choices for 8 types

of processes, there are 390,625 different
design possibilities, before buffering is
even considered.
•  Adding buffers makes the number of
solutions boundless.
•  And, of course, you have to reach a
stretch budget target.
•  The design must fit into the space allowed.
?

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 Typical Selections
Targets Worksheet

Total Cost $ 5,812 =>94% Over Budget! WARN

Series: (Enter the number of machines Fault Count (By Row)

100
200
300
400
500
in the appropriate col.)

Process A: Spot Welds 2 XXXXX

Process B: Part Welds 2 XXX XX
Process C: Drilling 3 XXXX XXX
Process D: Bolting 3 X
Process E: Sealing 2 XXXXX XX
Process F: Painting 8 X
Process I: Inspection 2 XXX XXXX
Process Z: Conveyor 1 X
PROCESS VIOLATIONS: 16 18
Buffers Total==> 10 1 0
Grand Total Violations 17 18

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 Data
Configuration Window X
Data entry screen for
Process A: Body Welding workstations. Work
Model A200 can be distributed
Number of Welds required: 88 among each station so
Number of Welds at this machine: 88 that each one is
Seconds/weld: 0.7 balanced. Thus, you
Speed (in jph): 59.3 can assign 44 welds to
Stand-Alone Throughput (in jph): 58.6 this A200 process,
MTTR: 24 Scrap Rate: 0.08% and 44 welds to the
MCBF: 2205 Investment: $582K next A200 process.
Op.Expense/month: $9000
Refresh Enter Close

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 Sample Design - 1st Run
Workstation
Break Area

B100 B100 C300 C300 C300 E500 E500

A400 A400 D500 D500 D500
86.0 JPH 86.0 J PH 78.2 J PH 78.2 JPH 84.2 J PH 67.6 J PH 67.6 JPH
102.7 J PH 102.7 JPH 97.3 J PH 91.4 JPH 97.3 JPH

F300 F300 F300 F300 F300 F300 F300 F300

79.0 JPH 79.0 J PH 79.0 JPH 79.0 JPH 79.0 J PH 79.0 JPH 79.0 JPH 79.0 J PH

I300 I300
Buf Z300
10 76.5 J PH 73.3 JPH
2.8 Sec.

Buffer Outline of Area Available

TOC World presentation.ppt / kak 05/19/00 02:50 PM 53
 Sample Results
Design Game Report Our student got 49
_ X
JPH when s/he needed
Target Throughput: 70 JPH
70 JPH. It will take
Actual Throughput: 49 JPH
7.5 years to payback
Throughput Dollars: $2,817 K
our investment.
Operating Expense: $2,077 K
Obviously, there is a
Net Profit: $ 743 K
lot of upside potential
Investment: $5,546 K
in Net Profit & RONA
RONA: 13.34%
if we can increase
Done throughput up to our
demand rate.
(C-More is run in the background to generate Actual
Throughput, which is always in JPH in GM.)
TOC World presentation.ppt / kak 05/19/00 02:50 PM 54
 Design Game Report _ X

Target Throughput: 70 JPH

Actual Throughput: 49 JPH
Throughput Dollars: 2,817 K
Operating Expense: 2,077 K
Net Profit: 743 K
Investment: 5,546 K
RONA: 13.34%
Done

TOC World presentation.ppt / kak 05/19/00 02:50 PM 55

 End of 1st Run
•  Using the traditional method of local optimization
results in every team having a different design, and
all falling well short of their throughput goals. Most
bleed red and/or fail to fit into the required area,
miss their budgets, and have too many red X s.
•  What are the possibilities of consensus among the
teams on the best design?
•  Buffers are often the first thing sacrificed.
•  Leads to our list of Undesirables Effects listed earlier.

TOC World presentation.ppt / kak 05/19/00 02:50 PM 56

 Second Run
•  Remove all mandates and local measures
- only use Net Profit & RONA for decision
making.
•  Use RONA at the workstation level to
decide on each workstation.
•  End up with only a few variations to test
from an system level perspective. (Down
from 390,625)
•  Use C-More to add the optimal amount of
buffer to maximize RONA. GM NA!
•  End up with one best design for making
money.
TOC World presentation.ppt / kak 05/19/00 02:50 PM 57
 Workstation RONA

Number Capacity RONA RONA calculation

B100 2 87.5 28% made per
B200 3 72.1 42% workstation,
B300 4 81.8 16% based on number
B400 2 96.0 20% of machines
B500 4 70.5 25%
required to make
demand.
E100 3 100.4 0%
E200 2 79.8 17%
For workstation
E300 2 72.6 16%
E400 2 75.2 4%
RONA s that are
E500 2 67.3 -15% close, check both
in system model.
TOC World presentation.ppt / kak 05/19/00 02:50 PM 58
 Designed-In Constraint
Sta. RONA The designed in
A500 51% constraint, from this
perspective, is that
B200 42%
workstation that has
C400 1819% the lowest RONA of
D500 82% all the stations
E200 17% selected. This station
F500 47% should be the focus of
continuous
I300 1220% improvement activities
on the design side of
the house.

TOC World presentation.ppt / kak 05/19/00 02:50 PM 59

 Results after 2nd Run
•  One basic design that can be agreed upon by
everyone in the room.
•  Experimentation past this point is usually around
uncertainty.
–  Demand, model mix
–  Downtime data
–  Buffer protection investment to cover uncertainty risk
•  Basis for incremental change - will the change
increase Net Profit or improve RONA?

TOC World presentation.ppt / kak 05/19/00 02:50 PM 60

 Design Production
Portfolio, Evaluate
Identify
Centers Pull
Phase 0 DATA Plant Floor
Collect Data
Database Monitoring
MODELS
C-MORE C-MORE
Analysis Simulation Simulation
Review Team
Plan/Select
Meetings Current Meetings
Problems Plant
Implement Designers
Personnel

Evaluate New Track

Layout Throughput
Optimize RONA
TOC World presentation.ppt / kak 05/19/00 02:50 PM 61
 System Design using TOC in GM
•  Design assembly lines to be unbalanced, and
design in the constraint.
•  Break up the system with buffers. Use C-More &
the RONA equation to get the most bang for the
buck.
•  Over protect the designed in constraint with
buffers.
•  Use RONA calculations to optimize design,
perform trade-offs.
•  Our basic rule of thumb is: There is no rule of
thumb - you gotta do the math (analysis).

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 Factory after TOC implementation

TOC World presentation.ppt / kak 05/19/00 02:50 PM 63

 Status within GM
•  Class developed for training engineers on
optimizing system design using RONA.
Focus is on simulation engineers.
•  Rolling out to manufacturing design groups
in GM.
•  Used for understanding impact of changes
to current designs.

TOC World presentation.ppt / kak 05/19/00 02:50 PM 64

 Summary

•  Improving throughput in GM assembly plants has

increased our Net Profits by over $2 billion.
•  The data we collected from these plants help us
design the next wave of plants. These new plants
having higher throughput than the previous designs.

•  The use of RONA in design is our

next step to further improving our
profitability.
•  TOC is still primarily a Production
thing in GM.

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