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    Optimising the Process

    towards

    World Class Manufacturing

    August 2007

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    WORLD CLASS

    . . the Highest Standards of B us iness

    Performance

    means achieving

    . . . as measu red by theCustomer

    What Is World Class?

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    The World Class Goals of Securi-Tech

    Delighting the customer through superior:

    QUALITY

    COST

    SERVICE

    LEAD TIME

    FLEXIBILITY

    INNOVATION

    SECURITY

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    EmployeeInvolvement

    Total

    Quality

    Elimination

    of Waste

    Team-basedProcess

    Measurements

    Doing the

    r ightthings

    Rightfirst time....

    .. with theright people.

    World Class principles

    & Measuringthe right things

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    Optimising the Securi-Tech processes for World Class

    performance will require

    Eliminating waste

    Right-First-Time Quality at source

    All process variables under controlA highly organised workplace

    Process-aligned teamwork & accountability,

    Visible Measurements

    Continuous Improvement

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    What is waste?

    WASTEAny resource consuming activity that delivers NOvalue

    to the customer

    The GOALA Continuous and RAPIDFlow of Valueadding

    activities

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    What are the most important causes of waste in

    Securi-Techs processes at the moment?

    Reprints waste:Materials

    Printing capacity

    Packaging capacity

    Peoples time (and wages)

    The result of reprints

    Actual production capacity is unknown

    Customers cannot rely on us to deliver on time

    Our production costs cannot be predicted for setting the right prices Security risks, inconveniences and costs are all increased

    Everyone in the factory works under stress!

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    How many units per hour can these 7 operators produce?

    If you said:

    2+1.5+3+2.5+2+1.5+2.5=15 mins per unit; and

    7 people x 60 mins = 420 mins available per hour; therefore

    420mins / 15mins = 28 units per hour.. Then

    You have not understood the bottleneck!

    Operators:

    2 min 1.5 min 3 min 2.5 min 2 min 1.5 min 2.5 minCycle time

    per unit:

    Finishe

    ProducOP A OP B OP C OP D OP E OP F OP GRaw Mat: OP C

    60mins / 3mins = 20 units per houris the best you can get!

    Unbalanced lines and lack of bottleneck management

    are another major source of waste at Securi-Tech

    Th W ld Cl l i t li i t t d l d

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    The World Class goal is to eliminate waste, reduce lead-

    time and ensure right-first-time quality at each stage

    Eliminate Non-Value-Adding Activities

    Redesign Value-Adding Activities

    Target is a Process consisting of only Value-Adding Activities

    1 2 3 4 5 6 7 8 9 10 11 12 13 14

    Ideal ProcessValue Adding

    Non-Value Adding

    (Waste)

    O ti i i th S i T h f W ld Cl

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    Optimising the Securi-Tech processes for World Class

    performance will require

    Eliminating waste

    Right-First-Time Quality at source

    All process variables under controlA highly organised workplace

    Process-aligned teamwork & accountability,

    Visible Measurements

    Ri ht Fi t Ti d fi th

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    1

    INPUT

    Input variables?

    Process

    Variables?

    OUTPUT

    Output

    variation

    Measurable Attributes

    x

    Right First Time - define the process

    Ri ht Fi t Ti i bl d tt ib t

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    1

    Draw up a Variables - Attributes Matrix.

    - Primary input and process variables.

    - Output (product) attributes.

    Correlate the variables and attributes

    - Rank for strength of correlation

    CAUSE AND EFFECTAttributes

    Variab

    les

    Right First Time - process variables and attributes

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    Right First Time - process variables and attributes

    Example of a Sintering process

    Product Attributes Completing the

    matrix identifies the

    most significant

    process variable

    - those with the

    longest red bars

    The variable(s) can

    then be investigated

    in more detailProcess

    Va

    riables

    Control the process during its operation

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    2

    .. SET THE CONTROL MECHANISMS

    Controls can be...

    Visual ... Audible ... Measurable...Lead-time Quality Costs

    Flexibility Service InnovationRIGHT

    FIRST

    TIME

    100 %

    Control the process during its operation

    Optimising the Securi Tech processes for World Class

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    2

    Optimising the Securi-Tech processes for World Class

    performance will require

    Eliminating waste

    Right-First-Time Quality at source

    All process variables under controlA highly organised workplace

    Process-aligned teamwork & accountability,

    Visible Measurements

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    2

    The visual workplace - housekeeping

    Is this cupboard well

    organised ?

    Can you tell if any equipmen

    is missing ?

    Would it be easy to find the

    equipment you required ?

    Is all of the equipment still

    required ?

    Would you know where to

    return equipment to ?

    A highly organised workplace is achieved using 5S

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    2

    A highly organised workplace is achieved using 5S

    Introduced by Japanese

    A 5 Step Tool for Workplace Improvements

    SIERI- SEGREGATE

    SEITON- STORE

    SEISO- SWEEP

    SEIKETSU- STANDARDISE

    SHITSUKESYSTEMISE

    A Visual Control Method

    Securi-Tech needs to add a 6thS: SECURE

    Understanding 5 S

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    2

    1. CLEARING-UP

    To segregate wanted and unwanteditems.

    Eliminate unwanted items

    Store wanted items

    5. TRAINING &

    DISCIPLINEEmployee involvement

    continuously challenging

    and improving processes

    and practices

    2. ORGANISINGTo store wanted items in a mannerwhich will make them easy for

    anybody to retrieve when required

    3. CLEANINGTo remove the dirt and rubbish from

    the area around the operator and

    from the workplace as a whole

    4.STANDARDISINGTo look after a clean area in such a wayas to prevent it from getting dirty again

    Understanding 5 S

    Th B fit F 5 S

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    2

    Employee Involvement

    Improved Productivity

    Improved Quality

    Reduced Machine Downtime

    Reduced Stock & Space Requirement

    Improved Safety

    Improved SECURITYthe 6thS at Securi-Tech

    The Benefits From 5 S

    How Attitudes Change with 5S ...

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    4

    How Attitudes Change with 5S ...

    Post5S Activities

    Pre - 5S Activities

    Optimising the Securi-Tech processes for World Class

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    5

    Optimising the Securi Tech processes for World Class

    performance will require

    Eliminating waste

    Right-First-Time Quality at source

    All process variables under controlA highly organised workplace

    Process-aligned teamwork & accountability,

    Visible Measurements

    Continuous Improvement

    Measures drive behaviour

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    5

    Measures drive behaviour

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    5

    Who Measures?

    Even if we dont measure our own performance

    we are being measured by others...

    ......by our customers !

    ......by our potential customers!

    ......by our suppliers!

    ......by our competitors!

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    5

    If you dont measure it you cant understand it ...... If you

    cant understand it you cant better it. In sport measurements are used all the time:

    Football

    Score

    Home / away record

    Goals scored / conceded

    Individual player goals

    Performance is measured in sport because they want to

    know how they are doing and, equally important, they want

    to know what it is going to take to be the best.At work, we are nowhere near as sophisticated!

    Why Measure?

    Visual performance measures

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    5

    p

    Performance measures must be ...

    Simple and relevant

    Timely and up-to-date

    Owned by the cell / team

    Visual performance measures - examples

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    5

    p p

    Order tracking

    No. of peoplein the cell

    Productivitymeasure

    1

    2

    3

    4

    5

    1 Productivity by product order

    2 Problems during the shift (tick sheet)

    3 Cell changeover time

    4 Adherence to schedule

    5 Cell skills matrix

    Simple works-ordertracking mechanism

    Team responsible for

    updating the charts

    during and after each

    shift

    End-of-shift meeting

    held around the board

    to discuss problems

    Optimising the Securi-Tech processes for World Class

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    5

    g

    performance will require

    Eliminating waste

    Right-First-Time Quality at source

    All process variables under control

    A highly organised workplace

    Process-aligned teamwork & accountability,

    Visible Measurements

    Continuous Improvement

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    5

    Continuous Improvement

    MEASURES TEAM MEETING IDENTIFY

    ANALYSE

    PLAN SOLUTION

    IMPLEMENTATION

    THE

    IMPROVEMENTPROCESS

    OEE Availty Performance

    Quality Downtime

    If you dont measure it

    you wont improve it!

    Optimised World Class processes at Securi-Tech would:

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    6

    Produce reliable quality right-first-time every time

    Run at an entirely predictable output rate

    Be repeatable on an hourly, daily and weekly basis

    Be efficient in use of materials and peoples time

    Be totally secure

    Be totally safe

    Ensure Securi-Tech succeeds, grows & provides stable

    employmentMake Securi-Tech a pleasant, tidy and harmonious

    place where we can all be proud to work!

    DEFINITION OF A CELL

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    DEFINITION OF A CELL

    AN AREA WHERE WORK GETS DONE . .

    . BY A TEAM OF PEOPLE

    GUIDELINES FOR A CELL

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    GUIDELINES FOR A CELL

    CLEARLY IDENTIFIED 'CUSTOMER'

    LIMITED RANGE OF PRODUCTS

    NO ROUTING COMPLEXITY

    FLEXIBLE PEOPLE

    Multi-Skilled

    Work as Team

    STABLE SCHEDULE

    VISUAL CONTROLS

    TIME ALLOCATED TO IMPROVEMENT / PROBLEM SOLVING

    IDLE EQUIPMENT IS NOT AN ISSUE

    There are two possible approaches to

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    World Class Manufacturing implementation

    1. The Shotgun Approach

    Cellular Layouts Total Quality Management

    Total Productive Maintenance SMED (Set-up Reduction)

    Teamworking / Involvement Performance Measurement

    Pull Scheduling (Kanban, Rate Base) Multiskilling etc.

    This approach may deliver some incremental improvement but never a step-change

    Danger of flavour of the month syndrome

    Single techniques gains often lost as another is applied

    A single WCM technique is selected & applied broadly

    across the entire plant / business e.g:

    There are two possible approaches toW ld Cl M f t i i l t ti ( t )

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    World Class Manufacturing implementation (cont.)

    2. The Multiple Rifle Approach

    A wide range of synergistic WCM techniques are applied simultaneously

    in a highly structured manner to a small, focused area of the business(e.g. a cell)

    This approach delivers radical and irreversible step-changes in

    performance

    A fully integrated World Class Manufacturing cell will deliverstep change improvements

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    Kanban

    STATION 1 STATION 2

    Kanban

    STATION 'n''n-1'

    STATION

    Kanban

    Kanban

    STATION3

    CellMeetings

    Multi -Skilled

    House -Keeping

    OperatorMaintenance

    QualityImprovement

    Teams

    OwnershipAnd PrideIn Cell

    Quick-Set-upFacility

    CellSched-uling

    KanbanRequest FromCustomer- Or Other Cell

    Line-StopAuthority

    DirectLineFeed

    PerformanceVisibleMeasures

    Recognition& Reward

    SuggestionScheme

    KanbanDeliveries

    To Cell

    To Customer

    ManufacturingArea

    KanbansReplenishment

    Or Next

    CustomerFeedbackOn Quality

    'A Place ForEverything'

    Poka-Yoke(Fail-safe)

    ChartsQuality

    SkillsMatrix

    Off-Line

    Buffer

    Stock

    SUPPORTGROUPS(Adjacent

    to Cell)

    Material

    LogisticsProductionEngineering

    MaintenanceEngineering

    ProductDevelopmentProcurement

    Scheduling

    Costing

    Kanban

    Kanban

    step change improvements

    - MAX

    Kanban

    Kanban

    World Class Manufacturing

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    6

    BA1

    MON TUE WED THU FRI W/EMON TUE WED THU FRI W/E

    PLANNING

    BOARD

    WK 23 - 30/5/99 WK 24 - 7/6/99

    BA2

    CR2

    MANNINGRE

    Q

    MANNINGAVAIL

    20

    6

    6 6

    20

    STATION 1 STATION 2

    STATION 'n''n-1'

    STATION

    STATION3

    DirectLineFeed

    Kanban

    VisibleWorkplaceVisual Shop floorBased Planning

    Kanban

    Supplier

    ManagedInventory

    Team Working

    Set-up /ChangeoverReduction

    ProcessCapability& Control

    TotalProductiveMaintenance

    Personal QualityResponsibility

    Visual & MeaningfulPerformance Measures

    Standard OperatingProcedures

    BlitzKaizen

    IMPLEMENTATION OF WORLD CLASS CELLS

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    DO . . .

    Select a Product Family with a Reasonable Futurefor the Pilot Cell

    Select Equipment which allows Some Spare Capacityin the Short / Medium term Form a Multi-disciplinary Project Team, incorporating at least

    Production / Quality / Material Logistics / Maintenance / Future Team Leader

    Dedicate Sufficient Resourceto get the Pilot running quickly ( 4-10 weeks)

    Involve as many World Class Techniquesas possible in the Pilot Cell

    Develop a Detailed Time-phased Project Plan

    Hold a Site Briefingbefore you start

    Involve Operatorsin Planning the Layout & Operation Sequence

    Use Pull Systems(Kanban) within the Cell

    Use Scoreboard Measurements & Problem Board from the first day

    Ensure Operators Own the Measurements

    Encourage Operators to Fine Tunethe Cell

    Have Functional Specialists on call- especially in Start-up phase

    Aim for Maximum Skills Transfer

    IMPLEMENTATION OF WORLD CLASS CELLS

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    DONT . . .

    Select a Brand-newProduct Family or Process for the Pilot Cell

    Allow any Routing Complexitywithin the Cell

    Schedule for Unrealistic Levels of Uptime

    initially not more than 80% of Capacity . . . often less

    Allow any Loss of Momentumonce the Project has begun

    Keep any Substantial Safety Stocks in line- keep them off-line initially

    Overlook Importance of Housekeeping Put inIT Linksto begin with / make the cell dependent on any new technology

    Expect any substantial benefitJUSTfrom moving equipment into new layouts

    Proceed without a Clear Visionof the World Class Environment you are trying to create

    Factory Visits

    External Advice / Facilitation from people who have done it before

    Allow the Pilot Cell to be a Failure !!

    Scope of the set-up reduction activity

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    7

    From finish of production of the previous product / operation

    through to the first good part of the next product / operationProduct A Product B

    Production Stop Find Tooling Load Tooling Set-Up M/c Verify Production

    Scope of Set-Up Reduction Activity