System Kaizen Approach May 2015
- 1. Lean Production PDCA A3 Business Case Initial Condition Target Condition Implementation Indicators Approval System Kaizen Process
- 2. “YourValueStreamImprovementCoach” 2 “Lean Production” stands for... …the complete and through elimination of waste to reduce the timeline from receipt of customer order to delivery. ...increase of efficiency and standardization by continuous improvements. ... a philosophy, as well as production techniques, for “cutting the fat” from production processes. ...the highest quality, lowest cost, shortest lead time... ... customer orientation, orientation for quality and cost reduction. ...A business system for organizing and managing product development, operations, suppliers, and customer relations that require less human effort, less space, less capital, less material, and less time to make products with fewer defects to precise customer desires. ...quick and agile as it provides the flexibility and speed to design and produce a wide variety of products customized to specific orders and delivered with extremely short lead times. …the right part, in the right quantity, at the right moment, in the right quality, at the right place. 10/5/2016
- 3. “YourValueStreamImprovementCoach” 3 Plan, Do, Check, Act (PDCA) An improvement cycle based on the scientific method of proposing a change in a process, implementing the change, measuring the results, and taking appropriate action. The PDCA cycle has four stages: 1. Plan: Determine goals for a process and needed changes to achieve them. 2. Do: Implement the changes. 3. Check: Evaluate the results in terms of performance. 4. Act: Stabilize and Standardize the change or begin the cycle again, depending on the results. Plan Do Check Act Grasp the Situation Standardize 10/5/2016
- 4. “YourValueStreamImprovementCoach” 4 A one page storyboard on 11”x17” paper, commonly known as A3-size paper. Logic flows from the top left to the bottom right, and each box leads to the next one. An A3 includes both analysis (number- crunching) and synthesis (storytelling). It’s a practice of getting the problem, the analysis, the corrective actions, and the action plan on a single sheet of paper. The primary purpose of the A3 is to gain a shared understanding of critical issues in order to solve problems and get results. A3 Report Initial Condition: Target Condition: Implementation: Approval Indicators Background / Business Case: Project Name: A3 Report It’s a way of thinking. 10/5/2016
- 5. “YourValueStreamImprovementCoach” 5 A3 Report Initial Condition: Target Condition: Implementation: Approval Indicators Background / Business Case: Project Name: 10/5/2016
- 6. “YourValueStreamImprovementCoach” 6 Define the Business Case Increasing Customer expectations require improved quality, delivery, and cost Need to improve cost competitiveness to survive in a global economy - Growth/New Markets - Inventory Turnover - ROI Capital -Cost Reductions / Increase Margins $ Be sure to link your plan to business objectives. 10/5/2016
- 7. “YourValueStreamImprovementCoach” 7 A3 – Document Business Case Background / Business Case: Project Name: Hose Line Productivity Improvement 1. Increasing customer expectations and pressure require improvements in quality, delivery, and cost. 2. Need to improve cost competitiveness. 10/5/2016
- 8. “YourValueStreamImprovementCoach” 8 The LEAN Journey Initial Condition IDEAL Condition •100% Value Add •0 Defects (Internal) •One Piece Continuous Flow •Human Development •Value to Society •Hidden Waste (Problems) •Poor Equipment Efficiency •Poor Labor Efficiency •High Defect Rates •Large Batches •Infrequent improvement Before you can begin the journey you must “Grasp the Initial Condition”. 10/5/2016
- 9. “YourValueStreamImprovementCoach” 9 Grasp the Initial Condition Walk / Observe the Value Stream(s) from shipping to receiving. Map the Process - Value Stream Map - Flow Chart - Spaghetti Diagram - Bubble Diagram - Work Flow CustomerSupplier Final AssemblyFabrication #2Fabrication #1 MRP Finished Goods Control Daily Customer Schedule MRP Component Control Supplier Orders (Weekly EDI) Customer Orders (Weekly EDI) Daily Orders ASN Warehouse RM IWIP Warehouse FG Daily Schedule Daily Ship Schedule Shuttle Shuttle IWIP FTT= 98% OEE= 70% Scrap= 2% Rework= 1% Uptime= 70% EPEI = 3 - 10 Days FTT= 96% OEE= 50% Scrap= 2% Rework= 2% Uptime= 70% EPEI = 2- 5 Days FTT= 94% OEE= 65% Scrap= 2% Rework= 4% Uptime= 75% EPEI = 1 – 2 Days Expedited 20 min 1 Day 1 Day 30 min 2 Days 20 min 4 Days RM Production Lead Time = 8.3 Days Processing Lead Time = 70 min. (0.6%) Kanban Rack KanbanRack Kanban Rack HFV6 Jumper Tube Punch Sort Table Washer Drain Rack Washer Drain Rack FC Bench ToolChest 2.7L EF1042 Bead Checker EF005 3-Hit EF006 1-Hit WIP Rack EF007 3-Hit EF008 EF009 EF001 2-Hit EF1041 2.7 EF015 2-Hit C ylinder Drop Auto Loader 2.7LJR&LH Skive&Punch Load Unload Electric 110V EF004 2-Hit EF004 2-Hit LoadUnload EFMachine EF010 Robot Guarding Guarding Guarding Robot Controller 3 5 6 3 6 7 5 4 SPCTable 4 5 2 2 1 1 1 5 1 5 1 4 5 1 1 1 2 2 5 Template: Quick Connect - Red Line Jumper - Blue Line Cutter Race track 1 Race track 2 Race track 3 Hose Assy 1 Hose Assy 2 Hose Assy 3 Crimp 1 Crimp 2 Crimp 3 Butter- Fly 1 Butter- Fly 2 Butter- Fly 3 Clench 1 Clench 2 Test, Inspect, Tape, Gauge, And Pack1 1 x 3 x 3 x 3 x 1 x 2 x 1 = 54 different possible paths through production Masco Raw WIP Raw A B Ranso- hofff C Bushing Press Gantry Load Key Process Indicators Indicators: Current Lead Time 8.3 days WIP 12,168 Productivity (MH/100) 6.00 Bubble Diagram (# Paths) 54 OBC (% over ideal) 25% Problems / Opportunities CustomerSupplier Final AssemblyFabrication #2Fabrication #1 MRP Finished Goods Control Daily Customer Schedule MRP Component Control Supplier Orders (Weekly EDI) Customer Orders (Weekly EDI) Daily Orders ASN Warehouse RM IWIP Warehouse FG Daily Schedule Daily Ship Schedule Shuttle Shuttle IWIP 1 2 FTT= 98% OEE= 70% Scrap= 2% Rework= 1% Uptime= 70% EPEI = 3 - 10 Days FTT= 96% OEE= 50% Scrap= 2% Rework= 2% Uptime= 70% EPEI = 2- 5 Days FTT= 94% OEE= 65% Scrap= 2% Rework= 4% Uptime= 75% EPEI = 1 – 2 Days 5 6 3 4 5 7 8 8 9 Expedited 10 8 20 min 1 Day 1 Day 30 min 2 Days 20 min 4 Days RM Production Lead Time = 8.3 Days Processing Lead Time = 70 min. (0.6%) Problems / Opportunities: 1. Supplier incoming quality 2. Excessive RM amounts 3. Excessive rework 4. Poor equipment availability (OEE) 5. Excessive WIP amounts 6. Excessive lead-times (Muda) 7. Multiple scheduling points (Push) 8. Group leader managing scheduling 9. Excessive logistic touches 10. Premium freight cost Barriers Barriers: • Supplier Quality System • Poor OEE (59%) at Fab. 2 Other Relevant Data Operator Balance Chart 26 52 60 54 28 20 0 10 20 30 40 50 60 70 80 90 Masco Washer Inspect/Pack Value-Added Waiting Takt 10/5/2016
- 10. “YourValueStreamImprovementCoach” 10 A3 – Document Initial Condition Background / Business Case: Project Name: Hose Line Productivity Improvement 1. Increasing customer expectations and pressure require improvements in quality, delivery, and cost. 2. Need to improve cost competitiveness. Initial Condition: CustomerSupplier Final AssemblyFabrication #2Fabrication #1 MRP Finished Goods Control Daily Customer Schedule MRP Component Control Supplier Orders (Weekly EDI) Customer Orders (Weekly EDI) Daily Orders ASN Warehouse RM IWIP Warehouse FG Daily Schedule Daily Ship Schedule Shuttle Shuttle IWIP 1 2 FTT= 98% OEE= 70% Scrap= 2% Rework= 1% Uptime= 70% EPEI = 3 - 10 Days FTT= 96% OEE= 50% Scrap= 2% Rework= 2% Uptime= 70% EPEI = 2- 5 Days FTT= 94% OEE= 65% Scrap= 2% Rework= 4% Uptime= 75% EPEI = 1 – 2 Days 5 6 3 4 5 7 8 8 9 Expedited 10 8 20 min 1 Day 1 Day 30 min 2 Days 20 min 4 Days RM Production Lead Time = 8.3 Days Processing Lead Time = 70 min. (0.6%) Kanban Rack KanbanRack Kanban Rack HFV6 Jumper Tube Punch Sort Table Washer Drain Rack Washer Drain Rack FC Bench ToolChest 2.7L EF1042 Bead Checker EF005 3-Hit EF006 1-Hit WIP Rack EF007 3-Hit EF008 EF009 EF001 2-Hit EF1041 2.7 EF015 2-Hit C yl in de r Drop Auto Loader 2.7LJR&LH Skive&Punch Load Unload Electric 110V EF004 2-Hit EF004 2-Hit LoadUnload EFMachine EF010 Robot Guarding Guarding Guarding Robot Controller 3 5 6 3 6 7 5 4 SPCTable 4 5 2 2 1 1 1 5 1 5 1 4 5 1 1 1 2 2 5 Template: Quick Connect - Red Line Jumper - Blue Line Masco Raw WIP Raw A B Ranso- hofff C Bushing Press Gantry Load Problems / Opportunities: 1. Supplier incoming quality 2. Excessive RM amounts 3. Excessive rework 4. Poor equipment availability (OEE) 5. Excessive WIP amounts 6. Excessive lead-times (Muda) 7. Multiple scheduling points (Push) 8. Group leader managing scheduling 9. Excessive logistic touches 10. Premium freight cost Barriers: • Supplier Quality System • Poor OEE (59%) at Fab. 2 Operator Balance Chart 26 52 60 54 28 20 0 10 20 30 40 50 60 70 80 90 Masco Washer Inspect/Pack Value-Added Waiting Takt 10/5/2016
- 11. “YourValueStreamImprovementCoach” 11 Prioritize Problems / Opportunities Cost, Effort, Time Impact 1 2 3 4 Start Here Work on High Impact, Low Effort Activities 10/5/2016
- 12. “YourValueStreamImprovementCoach” 12 The LEAN Journey Initial Condition IDEAL Condition •100% Value Add •0 Defects (Internal) •One Piece Continuous Flow •Human Development •Value to Society •Hidden Waste (Problems) •Poor Equipment Efficiency •Poor Labor Efficiency •High Defect Rates •Large Batches •Infrequent improvement Once the Initial Condition is thoroughly understood the next step is to define a Target Condition assuring a magnetic pull towards the Ideal Condition. Target Condition The Target Condition should be a short term vision that is attainable and measured in days/weeks not months/years. Initial Condition 10/5/2016
- 13. “YourValueStreamImprovementCoach” 13 Define the Target Condition Map the Future State Customer Supplier Pacemaker Customer Specific Scheduling Point Complexity Split Fabrication #2Fabrication #1 FIFO Cross Dock or Supplier Warehouse MRP AdP Finished Goods Control Daily Customer Schedule Overseas Suppliers MRP AdP Component Control A Source Global Feel Local Supplier Orders (Weekly EDI) Customer Orders (Weekly EDI) Daily Orders e-Kanban 3x Day Green Loop (A Component Suppliers) Line side “A” component Supermarket MIN/MAX FG Supermarket MIN/MAX FG located/ visualized in manufacturing building warehouse ASN O X O X O X RM located/ visualized in manufacturing building warehouse Warehouse (RM) NAFTA Suppliers RM delivered to POU locations established by value stream (A Items) EPE Day or Shipment Window then strive to shorten over time Ridged MIN/MAX Rules – Minimum level inventory Cycle + Buffer + Safety Stocks EPEI Goal to match the pacemaker Ridged MIN/MAX Rules – Minimum level inventory EPEI Goal to match the pacemaker 20 Min. Loops 1 Day on hand RM Daily Deliveries Key Process Indicators Indicators: Current Target Delta Lead Time 8.3 days 4.0 days -52% WIP 12,168 7614 -37% Productivity (MH/100) 6.00 4.78 -20% Bubble Diagram (# Paths) 54 2 -96% OBC (% over ideal) 25% 8% -68% Verbal Description • Reduce from 3 Operators to 2 in Upper Machining • Elimination of 106 seconds of labor in Upper Machining • OEE > 88% (with FWD) • OEE >70% (w/o FWD) Other Graphical Analysis Operator Balance Chart 67 60 7 0 10 20 30 40 50 60 70 80 Machining Inspect/Pack Value-Added Waiting Takt Masco Raw WIP Raw A B Ranso- hofff C Bushing Press Gantry Load 10/5/2016
- 14. “YourValueStreamImprovementCoach” 14 A3 – Document Target Condition Background / Business Case: Project Name: Hose Line Productivity Improvement 1. Increasing customer expectations and pressure require improvements in quality, delivery, and cost. 2. Need to improve cost competitiveness. Initial Condition: CustomerSupplier Final AssemblyFabrication #2Fabrication #1 MRP Finished Goods Control Daily Customer Schedule MRP Component Control Supplier Orders (Weekly EDI) Customer Orders (Weekly EDI) Daily Orders ASN Warehouse RM IWIP Warehouse FG Daily Schedule Daily Ship Schedule Shuttle Shuttle IWIP 1 2 FTT= 98% OEE= 70% Scrap= 2% Rework= 1% Uptime= 70% EPEI = 3 - 10 Days FTT= 96% OEE= 50% Scrap= 2% Rework= 2% Uptime= 70% EPEI = 2- 5 Days FTT= 94% OEE= 65% Scrap= 2% Rework= 4% Uptime= 75% EPEI = 1 – 2 Days 5 6 3 4 5 7 8 8 9 Expedited 10 8 20 min 1 Day 1 Day 30 min 2 Days 20 min 4 Days RM Production Lead Time = 8.3 Days Processing Lead Time = 70 min. (0.6%) Kanban Rack KanbanRack Kanban Rack HFV6 Jumper Tube Punch Sort Table Washer Drain Rack Washer Drain Rack FC Bench ToolChest 2.7L EF1042 Bead Checker EF005 3-Hit EF006 1-Hit WIP Rack EF007 3-Hit EF008 EF009 EF001 2-Hit EF1041 2.7 EF015 2-Hit C yl in de r Drop Auto Loader 2.7LJR&LH Skive&Punch Load Unload Electric 110V EF004 2-Hit EF004 2-Hit LoadUnload EFMachine EF010 Robot Guarding Guarding Guarding Robot Controller 3 5 6 3 6 7 5 4 SPCTable 4 5 2 2 1 1 1 5 1 5 1 4 5 1 1 1 2 2 5 Template: Quick Connect - Red Line Jumper - Blue Line Masco Raw WIP Raw A B Ranso- hofff C Bushing Press Gantry Load Problems / Opportunities: 1. Supplier incoming quality 2. Excessive RM amounts 3. Excessive rework 4. Poor equipment availability (OEE) 5. Excessive WIP amounts 6. Excessive lead-times (Muda) 7. Multiple scheduling points (Push) 8. Group leader managing scheduling 9. Excessive logistic touches 10. Premium freight cost Barriers: • Supplier Quality System • Poor OEE (59%) at Fab. 2 Operator Balance Chart 26 52 60 54 28 20 0 10 20 30 40 50 60 70 80 90 Masco Washer Inspect/Pack Value-Added Waiting Takt Target Condition: Customer Supplier Pacemaker Customer Specific Scheduling Point Complexity Split Fabrication #2Fabrication #1 FIFO Cross Dock or Supplier Warehouse MRP AdP Finished Goods Control Daily Customer Schedule Overseas Suppliers MRP AdP Component Control A Source Global Feel Local Supplier Orders (Weekly EDI) Customer Orders (Weekly EDI) Daily Orders e-Kanban 3x Day Green Loop (A Component Suppliers) Line side “A” component Supermarket MIN/MAX FG Supermarket MIN/MAX FG located/ visualized in manufacturing building warehouse ASN O X O X O X RM located/ visualized in manufacturing building warehouse Warehouse (RM) NAFTA Suppliers RM delivered to POU locations established by value stream (A Items) EPE Day or Shipment Window then strive to shorten over time Ridged MIN/MAX Rules – Minimum level inventory Cycle + Buffer + Safety Stocks EPEI Goal to match the pacemaker Ridged MIN/MAX Rules – Minimum level inventory EPEI Goal to match the pacemaker 20 Min. Loops 1 Day on hand RM Daily Deliveries Masco Raw WIP Raw A B Ranso- hofff C Bushing Press Gantry Load Operator Balance Chart 67 60 7 0 10 20 30 40 50 60 70 80 Machining Inspect/Pack Value-Added Waiting Takt • Reduce from 3 Operators to 2 in Upper Machining • Elimination of 106 seconds of labor in Upper Machining • OEE > 88% (with FWD) • OEE >70% (w/o FWD) 10/5/2016
- 15. “YourValueStreamImprovementCoach” 15 Create an Implementation Plan Implementation: # Task Resp. Person Target Date Feb 05 Mar 05 Apr 05 May 05 Jun 05 Jul 05 Aug 05 Sep 05 Oct 05 Nov 05 Review Review 1 Fix Clamping to eliminate operator checking clamp force Roger Marshall 4/1/05 2 Reprogram Masco to separate operator from machine (PCT=88) Grant Glasscock 5/1/05 3 Standardize Blow-off (PCT=77) Brian Zolman 3/1/05 4 Improve clamp/ unclamp speed (PCT=75) Roger Marshall 4/1/05 5 Improve fixture rotation rate (PCT=74) Grant Glasscock 4/1/05 6 ROI Analysis: Re- balance Gantry (13 sec reduction) Grant Glasscock 5/1/05 7 ROI Analysis: Re- balance Masco (PCT=70) Matt Jacoby 5/1/05 8 ROI Analysis: Blow-off machine (PCT=63) Roger Marshall 4/1/05 9 Reduce from 3 to 2 operators per shift on Lower Machining cell Roger Marshall 7/1/05 10 Reduce from 3 to 2 operators per shift on Finishing cell Roger Marshall 9/1/05 Task description with specific, quantifiable expected resultsResponsible Person 3 Standardize Blow- off (PCT=77) Planned Start / Completion - Plan Start - Act Start - Plan Compl. - Act. Compl. - ReviewPlanning: Periodic evaluation of progress against planned timing and results Evaluation: X- On Target - Behind Target - In Trouble 10/5/2016
- 16. “YourValueStreamImprovementCoach” 16 A3 – Document Implementation Plan Background / Business Case: Project Name: Hose Line Productivity Improvement 1. Increasing customer expectations and pressure require improvements in quality, delivery, and cost. 2. Need to improve cost competitiveness. Initial Condition: CustomerSupplier Final AssemblyFabrication #2Fabrication #1 MRP Finished Goods Control Daily Customer Schedule MRP Component Control Supplier Orders (Weekly EDI) Customer Orders (Weekly EDI) Daily Orders ASN Warehouse RM IWIP Warehouse FG Daily Schedule Daily Ship Schedule Shuttle Shuttle IWIP 1 2 FTT= 98% OEE= 70% Scrap= 2% Rework= 1% Uptime= 70% EPEI = 3 - 10 Days FTT= 96% OEE= 50% Scrap= 2% Rework= 2% Uptime= 70% EPEI = 2- 5 Days FTT= 94% OEE= 65% Scrap= 2% Rework= 4% Uptime= 75% EPEI = 1 – 2 Days 5 6 3 4 5 7 8 8 9 Expedited 10 8 20 min 1 Day 1 Day 30 min 2 Days 20 min 4 Days RM Production Lead Time = 8.3 Days Processing Lead Time = 70 min. (0.6%) Kanban Rack KanbanRack Kanban Rack HFV6 Jumper Tube Punch Sort Table Washer Drain Rack Washer Drain Rack FC Bench ToolChest 2.7L EF1042 Bead Checker EF005 3-Hit EF006 1-Hit WIP Rack EF007 3-Hit EF008 EF009 EF001 2-Hit EF1041 2.7 EF015 2-Hit Cylin de r Drop Auto Loader 2.7LJR&LH Skive&Punch Load Unload Electric 110V EF004 2-Hit EF004 2-Hit LoadUnload EFMachine EF010 Robot Guarding Guarding Guarding Robot Controller 3 5 6 3 6 7 5 4 SPCTable 4 5 2 2 1 1 1 5 1 5 1 4 5 1 1 1 2 2 5 Template: Quick Connect - Red Line Jumper - Blue Line Masco Raw WIP Raw A B Ranso- hofff C Bushing Press Gantry Load Problems / Opportunities: 1. Supplier incoming quality 2. Excessive RM amounts 3. Excessive rework 4. Poor equipment availability (OEE) 5. Excessive WIP amounts 6. Excessive lead-times (Muda) 7. Multiple scheduling points (Push) 8. Group leader managing scheduling 9. Excessive logistic touches 10. Premium freight cost Barriers: • Supplier Quality System • Poor OEE (59%) at Fab. 2 Operator Balance Chart 26 52 60 54 28 20 0 10 20 30 40 50 60 70 80 90 Masco Washer Inspect/Pack Value-Added Waiting Takt Target Condition: Customer Supplier Pacemaker Customer Specific Scheduling Point Complexity Split Fabrication #2Fabrication #1 FIFO Cross Dock or Supplier Warehouse MRP AdP Finished Goods Control Daily Customer Schedule Overseas Suppliers MRP AdP Component Control A Source Global Feel Local Supplier Orders (Weekly EDI) Customer Orders (Weekly EDI) Daily Orders e-Kanban 3x Day Green Loop (A Component Suppliers) Line side “A” component Supermarket MIN/MAX FG Supermarket MIN/MAX FG located/ visualized in manufacturing building warehouse ASN O X O X O X RM located/ visualized in manufacturing building warehouse Warehouse (RM) NAFTA Suppliers RM delivered to POU locations established by value stream (A Items) EPE Day or Shipment Window then strive to shorten over time Ridged MIN/MAX Rules – Minimum level inventory Cycle + Buffer + Safety Stocks EPEI Goal to match the pacemaker Ridged MIN/MAX Rules – Minimum level inventory EPEI Goal to match the pacemaker 20 Min. Loops 1 Day on hand RM Daily Deliveries Masco Raw WIP Raw A B Ranso- hofff C Bushing Press Gantry Load Operator Balance Chart 67 60 7 0 10 20 30 40 50 60 70 80 Machining Inspect/Pack Value-Added Waiting Takt • Reduce from 3 Operators to 2 in Upper Machining • Elimination of 106 seconds of labor in Upper Machining • OEE > 88% (with FWD) • OEE >70% (w/o FWD) Implementation: Implementation: # Task Resp. Person Target Date Feb 05 Mar 05 Apr 05 May 05 Jun 05 Jul 05 Aug 05 Sep 05 Oct 05 Nov 05 Review Review 1 Fix Clamping to eliminate operator checking clamp force Roger Marshall 4/1/05 2 ReprogramMasco to separate operator from machine (PCT=88) Grant Glasscock 5/1/05 3 Standardize Blow-off (PCT=77) Brian Zolman 3/1/05 4 Improve clamp/ unclamp speed (PCT=75) Roger Marshall 4/1/05 5 Improve fixture rotation rate (PCT=74) Grant Glasscock 4/1/05 6 ROI Analysis: Re- balance Gantry (13 sec reduction) Grant Glasscock 5/1/05 7 ROI Analysis: Re- balance Masco (PCT=70) Matt Jacoby 5/1/05 8 ROI Analysis: Blow-off machine (PCT=63) Roger Marshall 4/1/05 9 Reduce from 3 to 2 operatorsper shift on Lower Machining cell Roger Marshall 7/1/05 10 Reduce from 3 to 2 operatorsper shift on Finishing cell Roger Marshall 9/1/05 10/5/2016
- 17. “YourValueStreamImprovementCoach” 17 Identify Expected Results Tangible Metric Improvements Indicators: Current Target Delta Intangibles: Lead Time 1.52 days .95 days -37% Less variation in the assembly process Lower C/O time by 66% Similar results can be achieved on the APOX1 and ASOX assembly lines Labor productivity stability at a wide range of demand Reduced material handling and conveyance of WIP WIP 12,168 7614 -37% Productivity (MH/100) 6.00 4.78 -20% Bubble Diagram (Paths) 54 2 -96% OBC (% over ideal) 25% 8% -68% WIP Value $13,624 $8,525 -$5,099 Labor Cost ($/year) $352,000 $253,500 -$98,500 Tangible Cost Improvements Intangibles 10/5/2016
- 18. “YourValueStreamImprovementCoach” 18 A3 – Document the KPI’s and Expected Results Background / Business Case: Project Name: Hose Line Productivity Improvement 1. Increasing customer expectations and pressure require improvements in quality, delivery, and cost. 2. Need to improve cost competitiveness. Initial Condition: CustomerSupplier Final AssemblyFabrication #2Fabrication #1 MRP Finished Goods Control Daily Customer Schedule MRP Component Control Supplier Orders (Weekly EDI) Customer Orders (Weekly EDI) Daily Orders ASN Warehouse RM IWIP Warehouse FG Daily Schedule Daily Ship Schedule Shuttle Shuttle IWIP 1 2 FTT= 98% OEE= 70% Scrap= 2% Rework= 1% Uptime= 70% EPEI = 3 - 10 Days FTT= 96% OEE= 50% Scrap= 2% Rework= 2% Uptime= 70% EPEI = 2- 5 Days FTT= 94% OEE= 65% Scrap= 2% Rework= 4% Uptime= 75% EPEI = 1 – 2 Days 5 6 3 4 5 7 8 8 9 Expedited 10 8 20 min 1 Day 1 Day 30 min 2 Days 20 min 4 Days RM Production Lead Time = 8.3 Days Processing Lead Time = 70 min. (0.6%) Kanban Rack KanbanRack Kanban Rack HFV6 Jumper Tube Punch Sort Table Washer Drain Rack Washer Drain Rack FC Bench ToolChest 2.7L EF1042 Bead Checker EF005 3-Hit EF006 1-Hit WIP Rack EF007 3-Hit EF008 EF009 EF001 2-Hit EF1041 2.7 EF015 2-Hit Cylin de r Drop Auto Loader 2.7LJR&LH Skive&Punch Load Unload Electric 110V EF004 2-Hit EF004 2-Hit LoadUnload EFMachine EF010 Robot Guarding Guarding Guarding Robot Controller 3 5 6 3 6 7 5 4 SPCTable 4 5 2 2 1 1 1 5 1 5 1 4 5 1 1 1 2 2 5 Template: Quick Connect - Red Line Jumper - Blue Line Masco Raw WIP Raw A B Ranso- hofff C Bushing Press Gantry Load Problems / Opportunities: 1. Supplier incoming quality 2. Excessive RM amounts 3. Excessive rework 4. Poor equipment availability (OEE) 5. Excessive WIP amounts 6. Excessive lead-times (Muda) 7. Multiple scheduling points (Push) 8. Group leader managing scheduling 9. Excessive logistic touches 10. Premium freight cost Barriers: • Supplier Quality System • Poor OEE (59%) at Fab. 2 Operator Balance Chart 26 52 60 54 28 20 0 10 20 30 40 50 60 70 80 90 Masco Washer Inspect/Pack Value-Added Waiting Takt Target Condition: Customer Supplier Pacemaker Customer Specific Scheduling Point Complexity Split Fabrication #2Fabrication #1 FIFO Cross Dock or Supplier Warehouse MRP AdP Finished Goods Control Daily Customer Schedule Overseas Suppliers MRP AdP Component Control A Source Global Feel Local Supplier Orders (Weekly EDI) Customer Orders (Weekly EDI) Daily Orders e-Kanban 3x Day Green Loop (A Component Suppliers) Line side “A” component Supermarket MIN/MAX FG Supermarket MIN/MAX FG located/ visualized in manufacturing building warehouse ASN O X O X O X RM located/ visualized in manufacturing building warehouse Warehouse (RM) NAFTA Suppliers RM delivered to POU locations established by value stream (A Items) EPE Day or Shipment Window then strive to shorten over time Ridged MIN/MAX Rules – Minimum level inventory Cycle + Buffer + Safety Stocks EPEI Goal to match the pacemaker Ridged MIN/MAX Rules – Minimum level inventory EPEI Goal to match the pacemaker 20 Min. Loops 1 Day on hand RM Daily Deliveries Masco Raw WIP Raw A B Ranso- hofff C Bushing Press Gantry Load Operator Balance Chart 67 60 7 0 10 20 30 40 50 60 70 80 Machining Inspect/Pack Value-Added Waiting Takt • Reduce from 3 Operators to 2 in Upper Machining • Elimination of 106 seconds of labor in Upper Machining • OEE > 88% (with FWD) • OEE >70% (w/o FWD) Implementation: Implementation: # Task Resp. Person Target Date Feb 05 Mar 05 Apr 05 May 05 Jun 05 Jul 05 Aug 05 Sep 05 Oct 05 Nov 05 Review Review 1 Fix Clamping to eliminate operator checking clamp force Roger Marshall 4/1/05 2 ReprogramMasco to separate operator from machine (PCT=88) Grant Glasscock 5/1/05 3 Standardize Blow-off (PCT=77) Brian Zolman 3/1/05 4 Improve clamp/ unclamp speed (PCT=75) Roger Marshall 4/1/05 5 Improve fixture rotation rate (PCT=74) Grant Glasscock 4/1/05 6 ROI Analysis: Re- balance Gantry (13 sec reduction) Grant Glasscock 5/1/05 7 ROI Analysis: Re- balance Masco (PCT=70) Matt Jacoby 5/1/05 8 ROI Analysis: Blow-off machine (PCT=63) Roger Marshall 4/1/05 9 Reduce from 3 to 2 operatorsper shift on Lower Machining cell Roger Marshall 7/1/05 10 Reduce from 3 to 2 operatorsper shift on Finishing cell Roger Marshall 9/1/05 Indicators Indicators: Current Target Delta Intangibles: Lead Time 1.52 days .95 days -37% Less variation in the assembly process Lower C/O time by 66% Similar results can be achieved on the APOX1 andASOX assembly lines Labor productivity stability at a wide range of demand Reduced material handling and conveyance of WIP WIP 12,168 7614 -37% Productivity (MH/100) 6.00 4.78 -20% Bubble Diagram (Paths) 54 2 -96% OBC (% over ideal) 25% 8% -68% WIP Value $13,624 $8,525 -$5,099 Labor Cost ($/year) $352,000 $253,500 -$98,500 10/5/2016
- 19. “YourValueStreamImprovementCoach” 19 Seek Project Approval Project Team Leader Project Team Leader: Roger Smith Team Members: Jim Fisher, Mark Johnson Sara Lewis John Davis Management: Tom Burdette Team Members Management 10/5/2016
- 20. “YourValueStreamImprovementCoach” 20 A3 – Document Project Approval Background / Business Case: Project Name: Hose Line Productivity Improvement 1. Increasing customer expectations and pressure require improvements in quality, delivery, and cost. 2. Need to improve cost competitiveness. Initial Condition: CustomerSupplier Final AssemblyFabrication #2Fabrication #1 MRP Finished Goods Control Daily Customer Schedule MRP Component Control Supplier Orders (Weekly EDI) Customer Orders (Weekly EDI) Daily Orders ASN Warehouse RM IWIP Warehouse FG Daily Schedule Daily Ship Schedule Shuttle Shuttle IWIP 1 2 FTT= 98% OEE= 70% Scrap= 2% Rework= 1% Uptime= 70% EPEI = 3 - 10 Days FTT= 96% OEE= 50% Scrap= 2% Rework= 2% Uptime= 70% EPEI = 2- 5 Days FTT= 94% OEE= 65% Scrap= 2% Rework= 4% Uptime= 75% EPEI = 1 – 2 Days 5 6 3 4 5 7 8 8 9 Expedited 10 8 20 min 1 Day 1 Day 30 min 2 Days 20 min 4 Days RM Production Lead Time = 8.3 Days Processing Lead Time = 70 min. (0.6%) Kanban Rack KanbanRack Kanban Rack HFV6 Jumper Tube Punch Sort Table Washer Drain Rack Washer Drain Rack FC Bench ToolChest 2.7L EF1042 Bead Checker EF005 3-Hit EF006 1-Hit WIP Rack EF007 3-Hit EF008 EF009 EF001 2-Hit EF1041 2.7 EF015 2-Hit Cylin de r Drop Auto Loader 2.7LJR&LH Skive&Punch Load Unload Electric 110V EF004 2-Hit EF004 2-Hit LoadUnload EFMachine EF010 Robot Guarding Guarding Guarding Robot Controller 3 5 6 3 6 7 5 4 SPCTable 4 5 2 2 1 1 1 5 1 5 1 4 5 1 1 1 2 2 5 Template: Quick Connect - Red Line Jumper - Blue Line Masco Raw WIP Raw A B Ranso- hofff C Bushing Press Gantry Load Problems / Opportunities: 1. Supplier incoming quality 2. Excessive RM amounts 3. Excessive rework 4. Poor equipment availability (OEE) 5. Excessive WIP amounts 6. Excessive lead-times (Muda) 7. Multiple scheduling points (Push) 8. Group leader managing scheduling 9. Excessive logistic touches 10. Premium freight cost Barriers: • Supplier Quality System • Poor OEE (59%) at Fab. 2 Operator Balance Chart 26 52 60 54 28 20 0 10 20 30 40 50 60 70 80 90 Masco Washer Inspect/Pack Value-Added Waiting Takt Target Condition: Customer Supplier Pacemaker Customer Specific Scheduling Point Complexity Split Fabrication #2Fabrication #1 FIFO Cross Dock or Supplier Warehouse MRP AdP Finished Goods Control Daily Customer Schedule Overseas Suppliers MRP AdP Component Control A Source Global Feel Local Supplier Orders (Weekly EDI) Customer Orders (Weekly EDI) Daily Orders e-Kanban 3x Day Green Loop (A Component Suppliers) Line side “A” component Supermarket MIN/MAX FG Supermarket MIN/MAX FG located/ visualized in manufacturing building warehouse ASN O X O X O X RM located/ visualized in manufacturing building warehouse Warehouse (RM) NAFTA Suppliers RM delivered to POU locations established by value stream (A Items) EPE Day or Shipment Window then strive to shorten over time Ridged MIN/MAX Rules – Minimum level inventory Cycle + Buffer + Safety Stocks EPEI Goal to match the pacemaker Ridged MIN/MAX Rules – Minimum level inventory EPEI Goal to match the pacemaker 20 Min. Loops 1 Day on hand RM Daily Deliveries Masco Raw WIP Raw A B Ranso- hofff C Bushing Press Gantry Load Operator Balance Chart 67 60 7 0 10 20 30 40 50 60 70 80 Machining Inspect/Pack Value-Added Waiting Takt • Reduce from 3 Operators to 2 in Upper Machining • Elimination of 106 seconds of labor in Upper Machining • OEE > 88% (with FWD) • OEE >70% (w/o FWD) Implementation: Implementation: # Task Resp. Person Target Date Feb 05 Mar 05 Apr 05 May 05 Jun 05 Jul 05 Aug 05 Sep 05 Oct 05 Nov 05 Review Review 1 Fix Clamping to eliminate operator checking clamp force Roger Marshall 4/1/05 2 ReprogramMasco to separate operator from machine (PCT=88) Grant Glasscock 5/1/05 3 Standardize Blow-off (PCT=77) Brian Zolman 3/1/05 4 Improve clamp/ unclamp speed (PCT=75) Roger Marshall 4/1/05 5 Improve fixture rotation rate (PCT=74) Grant Glasscock 4/1/05 6 ROI Analysis: Re- balance Gantry (13 sec reduction) Grant Glasscock 5/1/05 7 ROI Analysis: Re- balance Masco (PCT=70) Matt Jacoby 5/1/05 8 ROI Analysis: Blow-off machine (PCT=63) Roger Marshall 4/1/05 9 Reduce from 3 to 2 operatorsper shift on Lower Machining cell Roger Marshall 7/1/05 10 Reduce from 3 to 2 operatorsper shift on Finishing cell Roger Marshall 9/1/05 Indicators Indicators: Current Target Delta Intangibles: Lead Time 1.52 days .95 days -37% Less variation in the assembly process Lower C/O time by 66% Similar results can be achieved on the APOX1 andASOX assembly lines Labor productivity stability at a wide range of demand Reduced material handling and conveyance of WIP WIP 12,168 7614 -37% Productivity (MH/100) 6.00 4.78 -20% Bubble Diagram (Paths) 54 2 -96% OBC (% over ideal) 25% 8% -68% WIP Value $13,624 $8,525 -$5,099 Labor Cost ($/year) $352,000 $253,500 -$98,500 Approval Project Team Leader: Roger Smith Team Members: Jim Fisher, Mark Johnson Sara Lewis John Davis Management: Tom Burdette 10/5/2016
- 21. “YourValueStreamImprovementCoach” 21 The LEAN Journey Now its time to work the plan. As you move forward on this journey additional barriers will be encountered. Initial Condition IDEAL Condition •Hidden Waste (Problems) •Poor Equipment Efficiency •Poor Labor Efficiency •High Defect Rates •Large Batches •Infrequent improvement Target Condition •100% Value Add •0 Defects (Internal) •One Piece Continuous Flow •Human Development •Value to Society Dodging barriers leads you away from the Ideal Condition. Barriers must be met head-on and eliminated! Solutions to problems cannot involve diverting off the path to the Ideal Condition! There can be no shortcuts! Barriers Plan Do Check Act Grasp the Situation 10/5/2016
- 22. “YourValueStreamImprovementCoach” 22 The LEAN Journey To achieve sustainability it is important to stabilize and standardize the system improvements; otherwise, improvements will regress over time. Initial Condition IDEAL Condition •Hidden Waste (Problems) •Poor Equipment Efficiency •Poor Labor Efficiency •High Defect Rates •Large Batches •Infrequent improvement •100% Value Add •0 Defects (Internal) •One Piece Continuous Flow •Human Development •Value to Society The sustainability of system improvements will be achieved by the standardization and is the basis for the next improvement steps. The standardization allows: •To measure and evaluate improvements. •The exchange of best practices with similar and equal tasks. Target Condition Current State 10/5/2016
- 23. “YourValueStreamImprovementCoach” 23 Approach Quick wins using Lean methodologies. Always tie projects to dollars. Establish measurable benefits expected from each project. Quick pace of implementation requires removal of organizational and bureaucratic barriers. 10/5/2016
- 24. “YourValueStreamImprovementCoach” 24 Process Go to the Gemba for data. “Grasp the Situation” Start where the business need is greatest. Select projects that yield the greatest impact. A3 is a “working document”. “Nemawashi”. Prepare the ground for planting. A consistent process is used repeatedly. Background / Business Case: 1. Increasing customer expectations and pressure require improvements in quality, delivery, and cost. 2. Need to improve cost competitiveness. Project Name: Hose Line Productivity Improvement A3 – Document Project Approval Initial Condition: Cus tom er Sup plie r Final Asse mbly Fabri cation #2 Fabri cation #1 MRP Finis hed Goo ds Cont rol Dail y Custo mer Sche dule MRP Com pone nt Cont rol Sup plier Orde rs (We ekly EDI) Cus tome r Orde rs (We ekly EDI) Dail y Orde rs ASN Ware hous e RM IWIP Ware hous e FG Dai ly Sch edu le Dail y Ship Sch edul e Shutt le Shutt le IWIP 1 2 FTT= 98% OEE= 70% Scrap= 2% Rewor k= 1% Uptime = 70% EPEI = 3 - 10 Days FTT= 96% OEE= 50% Scrap= 2% Rewor k= 2% Uptime = 70% EPEI = 2- 5 Days FTT= 94% OEE= 65% Scrap= 2% Rewor k= 4% Uptime = 75% EPEI = 1 – 2 Days 5 6 3 4 5 7 8 8 9 Expe dited 10 8 20 min 1 Day 1 Day 30 min 2 Days 20 min 4 Days RM Produc tion Lead Time = 8.3 Days Proces sing Lead Time = 70 min. (0.6%) Kanb an Rack Kanb an Rack Kanb an Rack HFV6 Jumper Tube Punch Sort Tabl e Wash er Drain Rack Wash er Drain Rack FCBenc h Tool Chest 2.7L EF104 2 Valu e Stre am Map Descri ption "Dana Curren t Future State Map" Endform Spaghetti Diagram SIZE File Name Drawn By: REV B SHEET 1 OF 1 Bead Checke r EF005 3-Hit EF006 1-Hit WIP Rack EF007 3-Hit EF008 EF009 EF001 2-Hit EF104 1 2.7 EF015 2-Hit Cylinder Drop Auto Loader 2.7L JR &LH Skive &Punch Load Unload Electric 110V EF004 2-Hit EF004 2-Hit Load Unload EF Machine EF010 Robot Guarding Guarding Guarding Robot Controller 3 5 6 3 6 7 5 4 SPC Table 4 5 2 2 1 1 1 5 1 5 1 4 51 1 1 2 2 5 Sepera te Worksh op Templa te: Quick Connec t - Red Line Jumper - Blue Line Ma sco Ra w WI P Raw A B Ra nso- hofff C Bushing Press Gantry Load Pr ob lem s / Op po rtu nit ies : 1. Su pp lier inc om ing qu ality 2. Ex ce ssive RM am ou nts 3. Ex ce ssive rew ork 4. Po or eq uip me nt av ailab ility (O EE ) 5. Ex ce ssive WI P am ou nts 6. Ex ce ssive lea d-t im es (M ud a) 7. Mu ltip le sche du ling po int s (Pus h) 8. Gr ou p lea de r ma na gin g sche du ling 9. Ex ce ssive log istic tou ch es 10 . Prem ium fre igh t co st Barriers : • Supplier Quality System • Poor OE E (59 %) at Fab. 2 Ope rato r Bala nce Cha rt 26 52 60 54 28 20 0 10 20 30 40 50 60 70 80 90 Masc o Was her Insp ect/P ack Valu e-Ad ded Wait ing Takt Target Condition: Cus tom er Sup plie r Pace make r Custo mer Spec ific Sche duling Point Comp lexity Split Fabri cation #2 Fabri cation #1 FIF O Cross Dock or Supp lier Ware hous e MRP AdP Finis hed Goo ds Cont rol Dail y Custo mer Sche dule Over seas Supp liers MRP AdP Com pone nt Cont rol A Sourc e Globa l Feel Loca l Sup plier Orde rs (We ekly EDI) Cus tome r Orde rs (We ekly EDI) Dail y Orde rs e-Ka nban 3x Day Gree n Loop (A Comp onen t Supp liers) Line side “A” com pone nt Sup erm arke t MIN /MA X FG Sup erm arke t MIN /MA X FG locat ed/ visua lized in man ufac turin g build ing ware hous e ASN O X O X O X RM locat ed/ visua lized in man ufac turin g build ing ware hous e Ware hous e (RM) NAFT A Supp liers RM deliv ered to POU locat ions esta blish ed by value strea m (A Items) EPE Day or Shipm ent Windo w then strive to shorten over time Ridged MIN/M AX Rules – Minimu m level invento ry Cycle + Buffer + Safety Stocks EPEI Goal to match the pacem aker Ridged MIN/M AX Rules – Minimu m level invento ry EPEI Goal to match the pacem aker 20 Min. Loops 1 Day on hand RM Daily Deliver ies Ma sco Ra w WI P Ra w A B Ra nso- hofff C Bu shing Press Ga ntr y Load Ope rato r Bal anc e Cha rt 67 60 7 0 10 20 30 40 50 60 70 80 Mac hini ng Insp ect/ Pac k Val ue-A dde d Wa itin g Tak t • Reduce from 3 Opera tors to 2 in Upper Ma chining • Elimination of 106 seconds of labor in Upper Ma chining • OE E > 88% (with FW D) • OE E >70% (w/o FW D) Implementation: Implem entation: # Task Re sp. Person Target Da te Feb 05 Ma r 05 Ap r 05 Ma y 05 Jun 05 Jul 05 Au g 05 Sep 05 Oc t 05 No v 05 Re vie w Re vie w 1 Fix Clam pin g to eliminate opera tor checkin g cla mp force Ro ger Ma rshall 4/1 /05 2 Re programMa sco to separate op era tor from ma chine (PCT =88) Grant Glasscock 5/1 /05 3 Standardize Blow -off (PCT =77) Brian Zo lman 3/1 /05 4 Improve cla mp / uncla mp speed (PCT =75) Ro ger Ma rshall 4/1 /05 5 Improve fixture rotation rate (PCT =74) Grant Glasscock 4/1 /05 6 RO I An aly sis : Re - balan ce Ga ntry (13 sec reduction) Grant Glasscock 5/1 /05 7 RO I An aly sis : Re - balan ce Ma sco (PCT =70) Ma tt Jacoby 5/1 /05 8 RO I An aly sis : Blow -off ma chine (PCT =63) Ro ger Ma rshall 4/1 /05 9 Re duce fro m3 to 2 op erato rsper shift on Lowe r Ma chining cell Ro ger Ma rshall 7/1 /05 10 Re duce fro m3 to 2 op erato rsper shift on Finishing cell Ro ger Ma rshall 9/1 /05 Indicators Indicators: Current Target Delta Intangibles: Lead Tim e 1.5 2 days .95 days -37% Less variation in the assembly process Lowe rC/O tim e by 66% Similarresults can be achieved on the AP OX 1 andAS OX assembly lines Laborproductivity sta bility at a wide range of demand Re duced mate rial handling and conveyance of WIP WIP 12,16 8 7614 -37% Productivity (MH/100) 6.0 0 4.7 8 -20% Bu bble Diagram (Path s) 54 2 -96% OB C (% over ide al) 25% 8% -68% WIP Value $13,6 24 $8,52 5 -$5,0 99 LaborCo st ($/ye ar) $352,00 0 $253,50 0 -$98,50 0 Approval Proje ct Team Leader: Ro ger Sm ith Team Me mb ers: Jim Fis her, John Da vis Ma rk Johnson Scott Eric Sara Lewis Ma nageme nt: Tom Bu rdette Plan Do Check Act Grasp the Situation Standardize 10/5/2016