MSM - Multi-Layer Stream Mapping as a Combined Approach for Industrial Processes Eco-efficiency...

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Multi-Layer Stream Mapping as a Combined Approach for Industrial Processes Eco-efficiency Assessment

E.J. Lourenço1, A.J. Baptista1, J.P. Pereira1, and Celia Dias-Ferreira2

1 INEGI - Institute of Mechanical Engineering and Industrial Management, Campus FEUP, Universidade do Porto, Porto, PORTUGAL

2 CERNAS - Research Center for Natural Resources, Environment and Society, Campus da Escola Superior Agrária, Coimbra, PORTUGAL

Singapore 17-19 April 2013

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CIRP – LCE 2013 Singapore, 17-19 April 2013

CONTENTS

1. Introduction

2. Value Stream Mapping: The root for the concept

3. The Multi-layer Stream Mapping Description

4. Strengths of the MSM concept and applicability

5. Application Example

6. Conclusions and Future Work

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1. Introduction


Eco-efficiency

� Last decades economic growth and industrialization lead to major environmental impacts

In the 90’s the World Business Council for Sustainable Development (WBCSD) defined the term eco-efficiency, which combines ecological and economical efficiency

� WBCSD developed a framework to assesses eco-efficiency in order to promote sustainable development. The main goals are: maximize value creation (more goods/services) and minimize environmental burdens (less resource consumption and waste creation)

� Eco-efficiency measures the relationship between economic growth and environmental pressure, and is generally expressed by the ratio between economic value and environmental influence, represented by.

Eco-efficiency

Product or service value

Environmental Influence

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1. Introduction


Eco-efficiency

� Eco-efficiency as a management philosophy towards sustainability can be a very useful tool to assess environmental and economic performance and enhance the global performance of a company or even of a production system

� The framework developed by WBCSD can be used by any business to assess and measure progress towards economic and environmental sustainability.

However, this framework lacks a simple and discrete approach in order to analyze and assess unit processes that are part of a production system

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1. Introduction


Objectives

� Develop a multi-variable combined use of the Value Stream Mapping (VSM) Lean Tool and demonstrate its suitability to assess environmental and energy performance of unit processes and production systems in a fast and flexible manner. This by mapping the unit processes inputs and outputs and assessing their efficiency.

� Demonstrate the importance of presenting environmental issues and eco-efficiencyperformance in a simple manner through visual management maps and layouts, in order to simplify top/middle management understanding of the Key Environmental Performance Indicators (KEPI’s) and their suitability for decision making and overall awareness.

� Create an approach that solves the existing eco-efficiency tools and methods that are not always directly applicable to every product and/or production system, and often addressed as “isolated stage analysis”.

� Create a very easily understandable assessment (for all level collaborators) based in fast visual management attributes in most methods and tools used for eco-efficiency assessments.

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Value Added vs NON Value Added

� A value stream mapping consists basically in the collection of all actions (actions that add value and actions that do not add value) that are required to bring a product or a group of products through the main flow, starting with the customer and ending with the raw-material (upstream).

� The primary goal of this tool is to identify all types of waste in the value stream flow and processes in order to take actions to try and eliminate these, by analyzing the Value Stream Map.

Example of a common VSM of a Metalworking Industry

Transport WTS (input)

Cleaning WTS

Coating bolt holes (manually)

Mixing paint (pneumatic mixer)

Applying primer coat

Drying primary coat

Coating Inspection

2 2 2 2 2 2 2

VA 0,75 h 0,50 h 0,50 h 1,50 h 3,00 h 0,50 h PT 6,75 h

NVA LT 7,89 h

0,38 h 0,03 h 0,20 h 0,15 h 0,15 h 0,06 h WT 1,14 h

� 86%0,70 h0,53 h1,13 h0,17 h

- 66% 94% 71% 89%

Production Time (hours)

0,56 h3,15 h1,65 h

0,17 h

91% 95%

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� The MSM framework combines Value Stream Layers evaluated by the waste elimination / value creation mindset, identifying the variable part that adds value from the one that does not add value, with detailed unit process inventory and visual management attributes

� The VSM root transforms, in the MSM concept, the understanding of eco-efficiency into something easily quantifiable, simpler, concise and directly applicable to any production system, in a process sequence or even in compartmented units

� To assess the environmental, financial and global performance of a production system (by the composition analysis of its subparts), and identifying and quantifying the inefficiencies or misuses, the MSM concept starts from the classic bathtub curve of Value Stream Mapping

� The combined use of Value Stream Layers of a Value Stream Map emerges in order to “see beyond” the global environmental and financial performance of a production system in a simpler manner and enable the understanding of the eco-efficiency assessments, and at the same time simplify the identification and quantification of specific inefficiency situations

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� The MSM consists in replicating part of the approach used for Value Stream Mapping, but allowing the addition of multiple layers (stream flows for each process variable) that embrace environmental and economic aspects, or other variable, to assess eco-efficiency

VSM

MSM

ØTPi=

PTPi

LTPi

[%]

ØEPi=

PEPi

TEPi

[%]

ØCPi=

PCPi

TCPi

[%]

ØXPi=

PXPi

TXPi

[%]

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� The values located below of the MSM line are those which do not add value to the product, i.e. representing the waste/misuses of time, money or resources

� The values that are presented above the MSM line (Process Stages) are those that add value to the product, thus representing the “useful consumption” of stream flow that can be analyzed in order to assess, evaluate and quantify production efficiency and eco-efficiency

ØTP1ØTPi

ØTP2

ØEP1ØEPi

ØEP2

ØCP1ØCPi

ØCP2

ØXP1ØXPi

ØXP2

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� The MSM approach considers dimensionless ratios (actual variable divided by the maximum of the same variable, on the same process step), so the higher the result for the ratio, the better the performance of the energy, mass or time flow or other key variable of a process or system

� The process variables, must be assigned consistently to be maximized. The analysis of variables with the MSM is almost unlimited, for instance, the following environmental aspects can take place as assessing variables:

� Electrical energy� Raw Material� Fuel� CO2 Emissions reduction� Waste elimination� Toxic materials reduction

� Beside environmental aspects, other specific cost flows can be added, i.e. cost flow lines to assess the costs of energy consumption only, or raw material only, thus allowing to assess specific eco-efficiency indicators (since product value and environmental influence are specific)

� For a faster assess of the efficiency quantity, it was added visual management attributes by relating a very common key of 4 colors (red, orange, yellow, green) in the positive direction of efficiency, from 0% to 100%

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MSM global efficiency dashboard (illustrative data)

Process Stream Analysis

Multi-L

ayer S

tream M

apping

Process Eff iciency 100 - 90%



Process Eff iciency <40%

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MSM Strengths

� The MSM approach can assess, quantify and analyze environmental aspects (energy consumption, emissions, raw material consumption etc.), economic aspects and productions aspects one by one for each unit process. On the other hand the global performance can be assessed and quantified.

� One key feature of the MSM approach consists in considering dimensionless ratios, so the higher the result for the ratio, the better the performance. This feature allows the comparison of efficiency performance of distinct variables, and combine an integrated quantification of the overall efficiency, for instance by weighted average or product (by column or row)

� The outcome and results are a diagrammatical and intuitive representation of managerial concepts, and can be very practical and useful for:

� Top management decision support� Defining priorities� Identifying inefficiencies in an easy manner � Identifying Key Environmental Performance Indicators (KEPI) � Assessing eco-efficiency performance � Identifying improvement actions needs� Informing all level of collaborators of the efficiency of the production cell or unit

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MSM Strengths

� This approach can also be used for process re-engineering evaluation (multi-scenarios analysis), since in some cases the unit processes, or even the whole production system of a factory, have good operational results, but the efficiency is not as high as it could be.

� Therefore, using this approach to start point for scrutinize “where”, “how”, and “how much” can a unit process and/or a production system improve its financial, environmental and performance aspects, is of great importance for decision-making

� It’s simplicity is one great advantage, since it allow a very fast and visual assess of multi-variable efficiency and its integration (for instance by heighted average), simultaneously for top management or even workers.

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(*) If the data inventory exists(*) If the data inventory exists(*) If the data inventory exists(*) If the data inventory exists

… and …… and …… and …… and …

LLLL1111 (line 1) = M(line 1) = M(line 1) = M(line 1) = M11111111 (machine 11) +(machine 11) +(machine 11) +(machine 11) + MMMM1i1i1i1i (machine (machine (machine (machine 1i) +…1i) +…1i) +…1i) +…

LLLL2222 (line (line (line (line 2) 2) 2) 2) = = = = MMMM21212121 (machine (machine (machine (machine 21212121) + ) + ) + ) + MMMM2i2i2i2i (machine 2i(machine 2i(machine 2i(machine 2i) +… ) +… ) +… ) +…

MSM drilldown (*) MSM drilldown (*) MSM drilldown (*) MSM drilldown (*)

ProcessesProcessesProcessesProcesses

LinesLinesLinesLines

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Combine MSM analysis with mapping of layouts Combine MSM analysis with mapping of layouts Combine MSM analysis with mapping of layouts Combine MSM analysis with mapping of layouts

P3

60%

L1

61%

L2

62%

L3

57%

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Integrate MSM results and layouts Integrate MSM results and layouts Integrate MSM results and layouts Integrate MSM results and layouts

P3

60%

L1 L2

L3

61% 62%

57%

P2

60%

P1

90%

P4

75%

Company

71%

Lines

Plant

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Other MSM applications Other MSM applications Other MSM applications Other MSM applications Wine Vineyard Farm Wine Vineyard Farm Wine Vineyard Farm Wine Vineyard Farm

Other examples:Other examples:Other examples:Other examples:

� HospitalsHospitalsHospitalsHospitals

� BuildingsBuildingsBuildingsBuildings

� Office units (Services or Engineering)Office units (Services or Engineering)Office units (Services or Engineering)Office units (Services or Engineering)

� Transport companiesTransport companiesTransport companiesTransport companies

etc… etc… etc… etc…

BedBedBedBed 2222

BedBedBedBed 3333

BedBedBedBed 1111

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MSM comparison regarding other performance indicatorsMSM comparison regarding other performance indicatorsMSM comparison regarding other performance indicatorsMSM comparison regarding other performance indicators

� The visual management attributes integration and its mathematical simplicity, based on the well-known VSM lean tool, the MSM can be viewed as a promoter for the importance of assessing, evaluating and quantifying environmental aspects of an industrial process or plant, in order to improve global industrial performance

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5. Application Example


MSM simplified diagramMSM simplified diagramMSM simplified diagramMSM simplified diagram

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6. Conclusions and Future Work


� Develop a mathematical approach for optimization system purposes

� Study the application of the results for Life Cycle Engineering decision support, assessing process/resource usage efficiency vs. process/resource usage eco-efficiency

� Study its application in multi-product analysis

� Develop data base with environmental impact (single score contribution – Pt) for major/most common materials and energy types/flows

ConclusionsConclusionsConclusionsConclusions

Future WorkFuture WorkFuture WorkFuture Work

� MSM concept, based on the lean tool VSM, brings new perspective on how eco-efficiency assessments results can be quantified by a discreet method for a process sequence or a individual system

� It integrates strong visual management attributes and is mathematically simple (very easy to use for all kind of stakeholders)

� Very versatile and wide range concept that can be applied for multi-variable and multiple economic activities (project management, logistics, economics, services, health care, etc.)

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Thank You


E.J. Lourenço, A.J. Baptista, J.P. Pereira, and Celia Dias-Ferreira

Corresponding author: [email protected]

INEGI - Institute of Mechanical Engineering and Industrial Management, Campus FEUP, Universidade do Porto, Porto, PORTUGAL

MSM - Multi-Layer Stream Mapping as a Combined Approach for Industrial Processes Eco-efficiency...

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