Q14. What is a pacemaker process? Explain the importance and relevance of selecting an activity as pacemaker process in a value stream.

 

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Any process along the value stream that sets the pace of entire stream. The pacemaker is most of the time near the customer end of value stream i.e. the final assembly cell, but in a FIFO flow of product from upstream to downstream the pacemaker process is at the upstream .

 

On future state mapping pacemaker is the production process that is controlled by outside customers order

The "pacemaker process" is a series of production steps, frequently at the downstream (customer) end of the value stream in a facility, that are dedicated to a particular product family or services that responds directly to orders from external customers. The pacemaker is the most important process in a facility because how you operate here determines how well you can serve the customer, and what the demand pattern is like for upstream fabrication processes.

Lean activity should begin at the pacemaker process (usually shipping or final assembly), as it is most vulnerable with direct impacts on the customer. The pacemaker process usually is near the customer end of the value stream, often the final assembly cell. However, if products flow from an upstream process to the end of the stream in a FIFO sequence, the pacemaker may be at this upstream process.

 

When drawing a map, lean thinkers create a data box underneath each step to record information on these attributes. Sometimes additional information is needed, depending on the situation, and an important reality of mapping is that every map for every value stream will be slightly different. With all of the steps identified and characterized, it’s time for a harder task, which is to map the movement of product and the information flow that regulates the value stream. Mappers are looking to capture three critical attributes of each value stream. A final step in mapping the current state is to summarize the most critical feature of the value stream, and this is usually throughput time. Therefore, capturing the total time from the start of work on a product until it is ready for the customer is often the most helpful way to characterize the performance of the entire stream. With a completed current-state map in hand, it’s time to think about a better future state that will help both the customer and the provider organization. Getting there may involve a number of actions. 
One is to challenge each step as to whether it really creates value. Rework and storage of items are rarely of any value to the customer, and need to be eliminated whenever possible. Increasing the capability of individual steps so there is no rework, and organizing many process steps in a continuous flow, are excellent ways to eliminate waste while making the customer happier because of better quality and more rapid delivery.

 

A second step is to place as many actions as possible in continuous flow. This can dramatically reduce throughput time, and almost always reduces costs substantially. Achieving continuous flow frequently requires the relocation of processing equipment employing different technologies into a tight process sequence. And it may require the introduction or even the invention of new processing technologies that can be right-sized to the specific value stream, and which are inherently more capable, available, and flexible.

A problem we often note is a rush by an organization to relocate and tightly link process technologies that are neither capable nor available. In the absence of basic stability (which is capability times availability), it is more likely that there will be no flow rather than continuous flow. Although it seems to be against the spirit of rapid kaizen, we find that it is often better to attack capability and availability problems before tightly linking process steps. Once these attributes of the process steps are improved, progress toward continuous flow can be both rapid and sustainable.

 

A third step on the path to an improved future state is to level the output of the value stream and, when necessary, to divide what was originally one value stream into two or three value streams suited to processing products with different challenges.

The idea of levelling is very simple: Identify one spot along the value stream—the pacemaker step—where orders from the customer are transformed into production instructions. Then create a standard inventory at this point to permit every step upstream and downstream to operate in a level, smoothed manner, using first-in/first-out scheduling downstream from the pacemaker and pull signals upstream.

The pacemaker point is almost always that point at which the final specification of the product is set. For a make-to-stock product, this will be at the assembly point at the downstream end of the value stream. For a make-to-order product, it will often be at a point far up the value stream.

 

For Example in Retail / Manufacturing warehouses:

By creating a standard inventory large enough to buffer the value stream from gyrations in demand while still responding to customer needs in a timely manner, it’s possible to remove most of the mura and muri in the value stream. Doing so always leads to lower costs and higher quality.

As organizations try to level and smooth production, they will often discover that a major cause of muda and muri is the attempt to run very dissimilar products down the value stream. In both cases, the introduction of continuous flow at the pull of the downstream customer with levelled production will in a dramatic reduction in throughput time, a dramatic reduction in costs, and a substantial improvement in quality. This, rather than simply drawing maps, is the objective of value stream mapping.

Once the future state is achieved, it’s time for the lean thinker to start over by specifying the value desired by the customer, the gaps in the performance of the value stream from the standpoint of customer and producing organisation, and the needs of the employees operating the process.

 

The above explanation is taken from reference of SME.org.

Pacemaker process is critical process in the value chain, which creates the pull in the value stream. Production planning team plans production schedule at the rate of takt time, and is first informed to pacemaker process, which is supposed to drive the entire value chain then. Pacemaker process creates ‘pull’ in other processes in value chain to avoid waste. Other processes must produce only when the pacemaker process demands so. Generally it is the last assembly process in mfg environment, but there can be exceptions.

 

Importance & relevance of selecting an activity as pacemaker process in a value stream

Pacemaker process is very important because, of following and thus hightlights it relevance in perfect selection from value chain,

• Pacemaker process responds directly to demands of external customers
• Gives trigger to internal customers to start the work
• Smoothens the entire value stream
• Helps organization to become lean, by producing only when ‘really needed’ by customer & reducing the wastage like overproduction, inventories, delays
• Pacemaker process is most susceptible with direct impacts on customer
• Pacemaker process cycle time must answer to takt time (equal or slightly less)
• Value stream must be balance with respect to pacemaker process

PACEMAKER PROCESS

Any process along a value stream that sets the pace for the entire stream. (The pacemaker process should not be confused with a bottleneck process, which necessarily constrains downstream processes due to a lack of capacity.)

The pacemaker process usually is near the customer end of the value stream, often the final assembly cell. However, if products flow from an upstream process to the end of the stream in a FIFO sequence, the pacemaker may be at this upstream process.

 

 

 

 

 

 

Pacemaker process is a key point in the value stream, pace of entire value stream depends on way in which the pace of this key process is managed. Importance of selecting an activity as pacemaker is, it decides which all elements in the value stream becomes part of lead time computation from customer order to finished goods. Pace maker process also acts as the input process to receive the production schedule planned according to TAKT time, which further sets tone for upstream processes for further processing.

In an unlinked production environment, some processes move faster than the average and some operate more slowly. As a result, parts move through the system at varying speeds, only to end up in piles of inventory scattered along the value stream. Even with a takt time in place, there can still be some fluctuation in the actual performance of processes, if they are not somehow linked together. This fluctuation gets even more complicated when scheduling is done at multiple places in a value stream. For this reason, a pacemaker process is established. A pacemaker is the single point is normally towards the end of the line (sometimes final assembly) where a production process is scheduled. The upstream processes don’t produce without a pull signal originating from the pacemaker. It. A key rule for selecting the pacemaker is that all processes after it must “flow” to the customer.

 

The pacemaker simplifies production oversight. Having only one scheduling point greatly reduces the need for coordination. The benefit is amplified when there is mixed-model production in a value stream. The actual demand determines the mix, and the pull signals generated by the pacemaker process ensure that only the types of products that are needed are produced.

 

If there are multiple products, supermarkets are used. Continuous flow is used downstream from the pacemaker to manage production.

 

The following things needs to be considered while setting up a pacemaker process:

1. The pacemaker should be reliable. If it is frequently down for maintenance, it wreaks havoc on the rest of the value stream.
2. It should have minimal setup times to prevent surges.
3. The closer it is to the end of production, the more linked it is to the customer. The downside is that it might drive more inventory into supermarkets on the upstream processes.
4. Branches in production processes need to be upstream of the pacemaker or have a supermarket.

The pacemaker process in short simply determines the sequence of production.

Pacemaker process can be defined as the scheduling point in the production system, so as to say it dictates the rhythm for the rest of the system by responding directly to the orders from external customers or we can say that the upstream processes don’t produce without a pull signal originating from the pacemaker.

 

The importance and relevance of selecting an activity as a pacemaker process in the value stream lies in the fact that, how we control the production at this process sets the pace for all the upstream process, for e.g fluctuations in production volume at the pacemaker process affect the capacity requirements in the upstream process. Every piece of inventory above the pacemaker is pulled into it and everything below it flows in a smooth manner. For made-to-stock products one would typically have the pacemaker in the downstream, like in the final assembly where everything comes together, whereas for make-to-order kind of product, one would set the pacemaker in the upstream where the final specification is set or where the product becomes unique (maybe color, laptop configuration desired etc by customer.).

 

Using a pacemaker simplifies scheduling, maintains a level output, focuses on the bottleneck and prevents over production. The pacemaker concept is similar to drum buffer rope concept in Theory of Constraints (TOC) especially in make-to-order type of scenarios. However, the process constraint, in TOC, decides the throughput of the process or the capacity of the process to meet customer demand, whereas pacemaker sets the flow to meet the customer demand. So to say we can say that TOC purposely imbalances its process to manage the constraint whereas pacemaker doesn’t do purposely but by virtue of customer demand some processes may become a constraint.

 

Thanks

Jisha Nair

Value Stream Mapping is lean manufacturing tool used to document, analyze and improve the flow of materials or information from its beginning through till it reaches the customer. Each process step that the material/ information passes through is analysed to see if it is a:

• Value Add/ Non-Value Add
• Capable and Available
• Capacity is adequate
• Flexible

A Pacemaker process in the value stream is a process that is the only scheduling point along the value stream that sets the production rhythm for the entire stream. The pacemaker process should be located such that a pull system is maintained upstream of the pacemaker step and First-In-First-Out (FIFO) pace is maintained downstream till Customer. The pacemaker process usually is near the customer end of the value stream, often the final assembly cell. However, if products flow from an upstream process to the end of the stream in a FIFO sequence, the pacemaker may be at this upstream process. The idea is to schedule the pacemaker process such that its cycle time is as close as possible to the Takt time, so that the transition from a Pull system (upstream) to a FIFO system (Downstream) is achieved.

 

Fig. Selecting the “Pacemaker Process” [1]

 

 

One thing to note is a pacemaker process (a concept of lean production) is different from a bottleneck process (a concept of Theory of Constraints).

 

A bottleneck process is an overloaded or inefficient process step that limits the overall system’s production throughput. Bottleneck could be due to multiple reasons – excessive downtime, poor quality, long changeover times, and so on. The bottlenecks need to be analysed and fixed, but a bottleneck process need not be made the pacemaker process to set the flow rate of the entire value stream

 

 

[1] https://todaysleanmanufacturing.com/learning-to-see/pacemaker-process/

[2] http://journals.sfu.ca/ijietap/index.php/ijie/article/viewFile/158/116

Pacemaker helps the process to set the pace to meet the customer’s demand. Takt Time helps greatly to determine the speed and control of the process. The goal is to match the cycle time to the Takt time.

 Two major stages - Upstream is the point of origin for the process where it gets the input. Downstream is the point where it is closer to the end/to the customer. The pace maker schedules the process and sends out the signal to upstream as to what the inventory has been and the subsequent demand therefore. When the pacemaker is set closer towards the end of the process, it causes continuous flow resulting cycle time matching lead time.

The other pre requisites for pacemaker implementation are and not limited to

PULL (released when needed)

FLOW (movement with reduced waste)

VALUE (Customer’s willing to get)

MAP( Designing the process )

PERFECTION (Seeking continuous improvement)

Load leveling (Spike in Customer demand)

 

Let’s consider a simple stream of seeking a loan and the getting it approved.

 

PROCESS	Applying online	Customer reached out	Documents received	Verification	Approval
Cycle time( Biz hrs)	0.25	0.25	0.25	0.25	0.10
Lead time(Biz hrs)	8	8	16	16	8
Lead time	7 biz days
TAKT time		5 biz days
Upstream	XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Down stream					XXXXXXXXXXX
Pacemaker				XXXXXXXXXXXX

PaceMaker Process and its need:

 

In a production process flow, due to the variations in the individual process cycle times, the overall flow could vary and often result in unwanted inventories piling up. While Takt time indicates the pace of individual processes to meet the customer demand, variations amongst processes could be difficult to manage if scheduling is done at multiple places in the value stream. The objective of a pacemaker process is to overcome this issue, which will provide a “pull” signal for the upstream processes to produce.

 

Importance of PaceMaker Process:

 

The pacemaker process becomes the only scheduling point and there should be no other pull systems downstream of the pacemaker process. This ensures that there will be free flow to customer after the Pacemaker process.  It dictates the production rhythm for the rest of the system, with such a pace being based on supermarket pull systems further upstream from this point, as well as First In First Out (FIFO) systems further downstream.

 

Considerations in choosing a Pacemaker process:

• Has to be a process that is reliable and should not have high down time for maintenance or other reasons, because it will have serious impact on the rest of the value stream.
• It should be towards the end of the production flow, i.e. closer association with customer.
• It should not be a process than requires very high set up time.
• Any branching of the production processes need to be upstream of the Pacemaker process

In a production environment, when there are multiple products being simultaneously manufactured/ prepared/ assembled with different cycle times,  to meet a defined Takt time and the individual processes are not linked – We are looking at a scope for piles of inventory scattered along the value stream. This adds to the wastage and other work flow inefficiencies.

 

An apt example is the Kitchen or production area of a QSR that is into an assembly line production mode.

 

Each product has it’s individual cycle time and the takt time by default is defined for an order. A single order can be  with variable products or combination of multiple variable products… In this scenario , even with a takt time in place, there can still be some fluctuation in the actual performance of the sub processes, if they are not somehow linked together. This fluctuation gets even more complicated when scheduling is done at multiple places in a value stream. For this reason, a pacemaker is often established at a single point which is closest to the last service point- It is called a Transfer Bin , where the  finished products are arranged in a supermarket system with kanbans (a signalling system between each process)’. The signal tells people when to produce products on every station. The signal is normally a  card system or markings on the floor. Thus, a ‘production’ kanban triggers the production of parts. A ‘withdrawal’ kanban instructs the operator to refill it when it is empty and requires Replenishment to ensure that the immediate trend of product requirement is met . A proper schedule of production is controlled from here through the pull from upstream value system.

 

Thus A pacemaker is the single point where a production process is scheduled. The upstream processes don’t produce without a Pull signal originating from the pacemaker. Thus it sets the pace for all the processes which are upstream in the Value system.

An effective Pacemaker thus Facilitates or helps to:

• Meet customer demand immediately- adds to customer experience
• Create Flow- reduces inefficiencies in process
• Pull-based on real-time customer demand- Fresh food is provided to customer, thus customer experience is enhanced
• Keep a vigil on the final product quality as well as segregation of veg and non veg products, as the wrapping or packaging of the burgers / Sandwiches can be done at this point.- Thus reducing defects and replacements 
• Simplifies production oversight.-  The process is efficient and monitored
• Reduce the need for coordination as there is only one scheduling point- The benefit is amplified when there is a mixed- model production in a value stream, like in a QSR kitchen.- reduces waste of movement
• Determine the mix and pull signals based on actual demand to ensure that only the types and quantity of products that are needed are produced. Thus reducing wastage through replication or defects

Thus an effective Pacemaker ensures that different types of wastage are controlled adding to value to customer as well as the profitability in business.

Definition:

A device or technique used to set the pace of production and maintain takt time is called pacemaker.

A technique for pacing a process to Takt time is called pacemaker process.

Takt time is the maximum amount of time in which a product needs to be produced in order to satisfy customer demand. The term comes from the German word "takt," which means "pulse."

 

Importance of Pacemaker Process:

The "pacemaker process" is a series of production steps, frequently at the downstream (customer) end of the value stream in a facility, that are dedicated to a particular product family and respond to orders from external customers. The pacemaker is the most important process in a facility because how you operate here determines how well you can serve the customer, and what the demand pattern is like for upstream fabrication processes.

 

Overview

An unlinked production environment is like an accordion. Some processes move faster than the average and some operate more slowly. As a result, parts move through the system at varying speeds, only to end up in piles of inventory scattered along the value stream.

Even with a takt time in place, there can still be some fluctuation in the actual performance of processes, if they are not somehow linked together. This fluctuation gets even more complicated when scheduling is done at multiple places in a value stream. For this reason, a pacemaker is often established. A pacemaker is the single point where a production process is scheduled. The upstream processes don’t produce without a pull signal originating from the pacemaker.

 

Discussion:

The pacemaker simplifies production oversight. Having only one scheduling point greatly reduces the need for coordination. The benefit is amplified when there is mixed-model production in a value stream. The actual demand determines the mix, and the pull signals generated by the pacemaker ensure that only the types of products that are needed are produced.

 

The Pacemaker Process

1. The production schedule is planned according to takt time, and is sent to the pacemaker process. It pulls from the upstream processes.
2. Upstream processes ONLY produce when the pacemaker sends its signal. If there are multiple products, supermarkets are used.
3. Continuous flow is used downstream from the pacemaker to manage production.

There are several things to consider when selecting a pacemaker.

 

1. The pacemaker should be reliable. If it is frequently down for maintenance, it wreaks havoc on the rest of the value stream.
2. It should have minimal setup times to prevent surges.
3. The closer it is to the end of production, the more linked it is to the customer. The downside is that it might drive more inventory into supermarkets on the upstream processes.
4. Branches in production processes need to be upstream of the pacemaker, or have a supermarket.

 

 

Don’t let a pacemaker process override a takt time. You don’t want wild fluctuations in production rates. When a process is well refined and tightly linked the pacemaker becomes more of a scheduling point than a way to manage the actual pace. Consider an assembly line. The shifts occur at prescribed intervals, or the line moves at a constant pace. The pacemaker simple determines the sequence of production.

 

Example:

 

For example, fluctuations in production volume at thepacemaker process affect capacityrequirements in upstream processes. ... Note: material transfer from the pacemaker process downstream to finished goods need to occur as a flow (no supermarkets or pulls downstream of the pacemaker process).

Send the customer schedule to only one production process

By using supermarket pull systems, you will typically need to schedule only one point in you door-to-door value stream.  This point is called the pacemaker process, because how you control production at this process sets the pace for all the upstream processes.

For example, fluctuations  in production volume at the pacemaker process affect capacityrequirements in upstream processes.  Your selection of this scheduling point also determines what elements of your value steam become part of the lead time from customer order to finished goods.

Note: material transfer from the pacemaker process downstream to finished goods need to occur as a flow (no supermarkets or pulls downstream of the pacemaker process).  Because of this, the pacemaker process is frequently the most downstream continuous-flow process in the door-to-door value stream.  On the future-state map the pacemaker is the production process that is controlled by the outside customer’s orders.

 

 Thanks

Kavitha

 

 

Pacemaker process is any process along a value stream that sets the pace of the entire stream. It is usually near the customer end of the value stream, often the final assembly point. Pacemaker process is an essential component of Lean Manufacturing as it avoids inventory building along the value stream. Even with Takt Time in place, there can still be some fluctuations in the actual performance of the process and these fluctuations get even more complicated when scheduling is done at multiple places in a value stream. For this reason, a pacemaker is often established. A pacemaker is single point where a production process is scheduled. Pacemaker acts as a Kanban system where a signal is generated for the downstream processes to make a new component / product.

 

The activity of final assembly, outcome of which is delivered to the customer as a finished product, shall be selected as pacemaker process in the value stream.

A production schedule planned according to takt time is called as Peacemaker process.

The steps of a process that are dedicated to a particular family of products or services that responds directly to orders from external customers. A well run pacemaker sends smooth demand signals upstream to the remaining processes in the process cycle, which respond to requirements from external customers.

 

The steps of a process that are dedicated to a particular family of products or services that responds directly to orders from external customers. A well run pacemaker sends smooth demand signals upstream to the pull loops of the remaining processes, which respond to requirements from internal customers (not directly from external customers).

 

Lean activity should begin at the pacemaker process (usually shipping or final assembly), as it is most vulnerable with direct impacts on the customer.

The pacemaker simplifies production oversight. Having only one scheduling point greatly reduces the need for coordination. The benefit is amplified when there is mixed-model production in a value stream. The actual demand determines the mix, and the pull signals generated by the pacemaker ensure that only the types of products that are needed are produced.

 

The Pacemaker Process:

• The production schedule is planned according to takt time, and is sent to the pacemaker process. It pulls from the upstream processes.
• Upstream processes ONLY produce when the pacemaker sends its signal. If there are multiple products, supermarkets are used.
• Continuous flow is used downstream from the pacemaker to manage production. There are several things to consider when selecting a pacemaker.
• The pacemaker should be reliable. If it is frequently down for maintenance, it wreaks havoc on the rest of the value stream.
• It should have minimal setup times to prevent surges.
• The closer it is to the end of production, the more linked it is to the customer. The downside is that it might drive more inventory into supermarkets on the upstream processes.
• Branches in production processes need to be upstream of the pacemaker, or have a supermarket.

Pacemaker

It controls the operating or production rhythm of the value stream processes

 

When an activity is chosen as pacemaker process,        

1.       It provides only one scheduling point on production systems
2.       Upstream processes respond only when pacemaker sends the signal

Dear Ambassadors,

 

At the outset congratulations and sincere thanks for participating in this forum.

 

As we all know, given the inherent varying production rates at various processes, the central objective of Pacemaker process is to control and optimise the

inventory (WIP & FG) and avoid overproduction at all stages of value stream.

 

The key here is to select the processes which is reasonably stable and accommodates all product mix in upstream processes. As regards to relevance, the benefits of setting pace maker process is highest for single piece flow production followed by batch production.

 

Once again kudos to all the participants for great answers which were well thought and articulated. To pick up the best answer was as challenging as answering the question itself. Having said that, we feel that Sandhya Kamath’s answer was bit more crisp and specific in addressing the question.

 

Lastly I think what is more important for us is to think, write, read and meditate on various concepts of business excellence and enhance our own knowledge and understanding and along this journey we also create a world class dictionary for business excellence professionals.

 

Cheers!!”