re manufacturing fit-for-use parts supply
TRANSCRIPT
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Lean Six Sigma Green BeltFinal Project Report-Out
Remanufacturing Fit-for-Use Parts Supply
Duration of Project:
June 14, 2004 to August 14, 2004
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Team Membership
1
Operation Supervisor
Materials Manager
Operation Manager
Assembly Team Leader
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Define the processIPO
2
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Define the business case
3
Problem Statement (description)
Assembly was constrained because parts were not fit for use, causing
increased setup delays and repair problems.
Project Goals
Improve the productivity to 84%, Increase First pass Yield to 99%
Primary Metrics
Productivity Measure
FPY
Projected savings: 160K
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Define the voice of the customer
4
Customers
Main customers of project focus are internal depts of Prep and Assemblyprocess with Warehouse as end customer of remanufacturing.
Critical customer requirements, specifications, and/orconcerns
Established customer requirements of Assembly process through
questioning operators and creating a QFD Matrix to determine priority of
issue resolution.
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Defining the current process performance
5
QFD Analysis
Howca
nweaffectthewant
Improveinstructions
Improvethephotos
Betterguntorqueco
ntrol
Improvemachiningc
ontrol
Kitpartsfortheoper
ators
P ick t icke t has a l l parts listed 4 36 0 0 0 0
G ood th reads fo r sm ooth assy 5 0 0 15 45 0
C leare r p ic tu res in instruc tions 3 9 27 0 0 0
O pera to r parts a re grouped toge ther fo r them 4 12 12 0 0 36
N ot m issing parts a t line 4 12 12 0 0 36
Less l ine repa ir 4 0 0 36 36 0
Scores69 51 51 81 72
Fi l l the co lum ns w i th an impact v a lue 0 , 1 , 3 , 9 , (9 Hav ing the greates t im pact)
W hat does the customer want?
R ate
Impor t anc e
1- 5
( 5= Top)
Q F D
Qual i ty Funct ion Dep loyment
Analysis (Lite)
Process / Function
Rem an M odify to Assy
Date 7 /02/04
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Measuring Fit For Use
6
Inspect orders prior to assembly for defective or missing
components
1. Created a form for logging issues encountered
2. Collected issues and assigned department responsible for error
3. Tabulated and summarized the categories
4. Created a further breakdown of the issues showing trends of failures
Measure the use of labor
Work Sampling
Units per Man-hour
Labor minutes expended per unit
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Measure the current process performance
7
High output in area with least laborcontent.
Highest defect content in the area withhighest labor content.
0
10
20
30
40
50
# of Occur
Prep Stage Dassy Mod CLN Cr-Id
Process Area
Pareto Fit for Use Labor Min Spent / Unit of Production
0.0
20.0
40.0
60.0
80.0
100.0
Dis Assy Modify Prep Assy
Process Dept
LabMin/unit
0
5
1015
20
25
3035
40
45
Prep Assy Dassy Flow Mod Core
Process Dept
Labor Min / Unit by Dept
0
50
100
150
200
250
UNITS
Dis Assy Modify Prep Assy
AREA
OUTPUT
24 26 28 30 3234 36 38 40 42 44
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Analysis of Current Results
8
Work Load Imbalance
The right work being done in the wrong place
Productivity Imbalance
Extra capacity where the least amount of money was being spent
Poor Material FlowModify machine layout causing waste of space and motion
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Improve the process
9
Shift Operational Responsibilities
Remove machining operations that gravitated to other areas back to the
modify machining area.
Merge similar small casting operation into modify to take advantage of
labor efficiencies
Kaizen Machine Layout of Area Remove unnecessary equipment and items from area
Group equipment according to flow of material
Move needed equipment but less frequently used out of the flow path of
frequently processed models
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Control to hold the gains
10
Control plan for holding the gains
PCI stating the SOP responsibilities of the modify dept
and Quality characteristics
Feedback of performance beginning at flow through each dept back tomodify with accountability signoff and review for reworked material.
Productivity
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Project Summary Scorecard before and after
11
metric before after change (%)
PRODUCTIVITY 43.4 75.4 74% Increase
FPY 90% 98% 9% Increase
Calculated annual savings for the portion related to this project:
4 head reduction @ 40% PAC = 119K Annual
Reduction in OT yields additional 21K
Total projected annual savings of 140K
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Project Summary
12
Problem
Parts not Fit for Use causing an Assembly constraint
Baseline and Target Performance Improve productivity from the 40% range to the 80% range as well as
improve FPY to 99%
Analysis and Solution
Right work was being done in the wrong place, causing extra expense and
increased risk of defects at Assembly. Redistributed work load.
Results and Business Benefits
Productivity has improved 74%, FPY 9%, conservative hard savings of
140K annually.
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Operational Improvements
13
Head counts
0
10
20
30
40
50
60
70
80
Months by week
Ser i es 1 Ser i es 2 Ser i es3 Pol y. ( Ser i es1) Pol y. ( Ser i es2)
Productivity
0
20
40
60
80
100
120
Month in Weeks
Ser ies1 Poly. (Ser ies1)
The Contin uous
improvement
direction is UP.
Percent Overtime
0
5
10
15
20
25
Months in weeks
Cont inuous
im provem ent
d i r e c t i o n i s
d o w n .
First Pass Yield 2004Goal 89% Annual Average
70%75%
80%
85%
90%
95%
100%
2003
AVG Ja
nFe
bM
arAp
ril May
June Ju
lyAu
gSept Oc
tNo
vDe
c
Monthly Avg. & Current Week Daily
Gross Shipments
0
50
100
150
200
250
Months by week