“chasing waste” - mdeq• cps consists of three sub systems and fifteen guiding principles. the...
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Page 1Caterpillar Confidential: Green
“Chasing Waste”
Utilizing 6sigma and Caterpillar Production Systems (CPS) to Achieve Environmental Goals
Page 2Caterpillar Confidential: Green
Facility Overview
• Facility Opened in March 1998
• 30 Acre Site
• 183,000 Square Feet
• Current Active Employees– 15 Caterpillar Management– 155 Caterpillar Hourly
– 15 Contract Workers (Maintenance and Chemical Management)
• Second Largest Manufacturing Employer in Oxford
Page 3Caterpillar Confidential: Green
Product LineThe Caterpillar High Performance Extrusions (HPE) Facility manufactures high-pressure hydraulic hose couplings for use with Caterpillar XT hose in all available sizes from 3/8" to 2" in diameter. These couplings are assembled from components that have been machined from near net shape extrusions, or cold-formed steel basics.
There are several steps in the process of manufacturing these couplings. These include Annealing, Coating, Extrusion, Machining, and Assembly.
Page 4Caterpillar Confidential: Green
TornadoFebruary 5, 2008
Page 5Caterpillar Confidential: Green
Opportunity
Caterpillar looked upon the rebuilding process as an opportunity to make improvements to the facility. Some of those improvements were specifically aimed at improving environmental performance.• New energy efficient lighting• New energy efficient HVAC units• New insulated white roof system• Redesigned wastewater treatment system• Redesigned chemical storage area
Page 6Caterpillar Confidential: Green
2009 Environmental Goals and Accomplishments
• Goal: 90% recycled material (Year end results 97%)• Goal: <12,500 mt CO2 equivalents (Year end results 7,750)• Goal: <12.5m gals municipal water (Year end results 6.8m gals)
2010 Environmental Goals
• Goal:100% recycled material• Goal: <8,500 mt CO2 equivalents• Goal: <7.5m gals municipal water used
Page 7Caterpillar Confidential: Green
6SigmaCaterpillar launched 6Sigma globally in 2001. 6Sigma methodology is used to focus on “real problems”. It allows quick results and helps sustain improvements.
DMAIC ProcessDefine – How is business impacted?Measure – What is the extent of the problem?Analyze – What is the root cause?Improve – What is the solution?Control – Implementation plan
Page 8Caterpillar Confidential: Green
6Sigma (Reduction of Spent Cleaner- Example)
Define – Spent cleaner volumes were too high
Measure – Drag out and carryover was contaminating cleaner tanks
Analyze – Barrels are not allowed to rotate and drip before moving to next station
Improve – Add dwell time and rotation to programs to allow excess material to drain before moving to next station
Control – Train employees and Implement changes to all Standard work documents
Page 9Caterpillar Confidential: Green
Caterpillar Production Systems (CPS)
• In 2006 Caterpillar implemented CPS to provide commonality across the various processes
• CPS consists of three sub systems and fifteen guiding principles
The Operating system is focused on waste elimination using 6Sigma and lean tools. Guiding principles are; Chase Waste, Pull, Make Value Flow, Drive Standard Work,Even the Load, and Validate our processes
The Cultural system is focused on making change possible and improving the way we work. Guiding principles are;Put Safety First, Take the Customers View, Go,See,Act, Stop to Fix, Develop People.
The Management system is focused on creating measurements and the management structure to support continuous improvement. Guiding principles are; Actively Listen, Make it Visual, Align the Targets, Act Decisively
Page 10Caterpillar Confidential: Green
8 Wastes
Page 11Caterpillar Confidential: Green
Caterpillar Production Systems (CPS)• Make it Visual/Align the Targets – Communicate goals and post
results so that employees can see progress.• Make Value Flow - Standardized scheduling and flow at the phosphate
coating operation reduced waste from over processing and re-work.• Go,See,Act – Empower employees to make suggestions and report
activities that don’t comply with procedures (Continuous Improvement cards).
• Drive Standard Work - Standard Work created to shutdown boilers and other high energy use equipment during extended shutdown periods.
• Develop People – Establish training program for all employees on waste minimization and recycling program.
• Validate our Processes – Investigation of water usage created 6Sigma project to reduce water consumption through flow restriction and recycling of water.
Page 12Caterpillar Confidential: Green
Questions?
Thank You!
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