The value stream analysis is being transferred into the digital age

The classic value stream analysis seems like a relic from long past days. But now, a research team from Fraunhofer IPA, together with iFAKT GmbH, is developing software that will in the future automatically and in real-time query all production data and display it clearly. © University of Stuttgart IFF/Fraunhofer IPA, Photo: Rainer Bez, Heike Quosdorf

Scientists from the Fraunhofer Institute for Production Technology and Automation IPA digitize the value stream analysis together with the Stuttgart-based software provider iFAKT. This aims to make this proven optimization method feasible in the future with significantly less effort and almost in real-time.

In times of Industry 4.0 and artificial intelligence, the classic value stream analysis seems like a relic from long past days. For over 40 years, it has followed the same procedure and remains deeply analog to this day: An external service provider or an internal planning engineer walks through all production stations with a clipboard and stopwatch, interviews employees, and measures how long each work step takes. From these notes, a comprehensive overview is manually created, illustrating the interplay of all production processes on a DIN-A3 sheet. Only when the current state of production is known in detail does it reveal where processes can be optimized.

»Basically, value stream analysis is nothing more than a snapshot, and most companies only perform this effort once a year at most«, notes Markus Böhm from the Department of Factory Planning and Production Management at Fraunhofer IPA. However, the production system often changes multiple times within a year: new products are manufactured, using different raw materials than before, and perhaps additional machines are acquired. Optimization potentials therefore often remain undiscovered for a long time.

Software analyzes production, machine, and sensor data

The collection of data and the creation of the overall overview could soon take much less time. A research team led by Böhm is working with iFAKT GmbH on software that will automatically and almost in real-time query and clearly display all production data from the Enterprise Resource Planning system (ERP system) and other available data sources in the future.

However, in practice, databases like the ERP system are often inaccurate or incomplete. Data essential for value stream analysis are missing. Therefore, the researchers also analyze machine data — and struggle with heterogeneous interfaces: incompatible hardware, manufacturer-specific programming languages, different file formats. In many cases, machines are designed so that only the manufacturer has access to the data.

The scientists often do not have access to machine data or cannot read it out. They have to obtain it through other means: via sensors. For example, the research team installs location sensors on small load carriers and can then track in real-time which stations a customer order passes through in assembly and how long it is processed there.

Apps illustrate the insights gained

All events occurring during the processing of an order are represented in the digital value stream analysis as so-called data points. From these data points, apps calculate key figures. For example, if a machine fails during a process step, these apps not only provide information about the exact time and duration of the disruption but also offer insights such as how often the affected machine fails or what percentage of the process runs without errors. These details are visualized by the apps in tables and charts.

»It remains the task of a professional production planner to interpret the value stream analysis and derive appropriate measures«, says Böhm. The apps currently do not make suggestions. In the long term, however, the optimization of production processes could also be automatically initiated by software.

This is still future talk. Currently, the research team, together with scientists from the ESB Business School at Reutlingen University, is building a demonstrator to visually present the digital value stream analysis at trade fairs. At the same time, the software is made available to companies that want to standardize their value stream analysis with digital tools.

Background: Research Project ECOWERT

The research project »Real-time-oriented value stream analysis for sustainable production optimization« (ECOWERT) is planned for one year and runs until August 31, 2022. The Ministry of Economy, Labor and Tourism of Baden-Württemberg funds the project with a total of around 300,000 euros from the Invest BW funding program.