Ensuring Value (Part 3)

1. Ensuring Value(Part 3) Standardized Work (Best Practices) Mistake-Proofing (Defect Prevention)

2. Total Cost is Key (review) • In Lean Manufacturing, we focus on reducing waste in our processes, by focusing on: • Productivity (pieces per hour; cycle time; schedule attainment) • Quality (scrap and rework; fit with customer needs) • Downtime (equipment uptime; availability of qualified personnel) • Speed (on-time delivery; lead-time; order-to-delivery) • Cost (to produce each piece; overtime; expediting) • The Seven Deadly Wastes • Over-producing • Waiting • Over-processing • (Too Much) Inventory • (Unnecessary) Motion • Defects or Rework • (Excessive) Transportation and Materials Handling • Plus One More: Underutilized (Human) Resources Module 14,15

3. Standardized Work “Same job, same way, every time." RD010402

4. Standardized Work Defined • Standardized Work is work in which the sequence of job elements has been efficiently organized, and is repeatedly followed by a team member. • Standardized Work Instructions (SWIs) are specific instructions that allow processes to be completed in a consistent, timely, and repeatable manner. • By implementing Standardized Work, employees will increase production and efficiency, improve overall quality, and enjoy a safer working environment. • Benefits of Standardized Work: • Increased levels of training • Greater waste elimination • Sustainability of improvements • Predictability of results Module 14,15

5. Reactions and ResistanceMoving Towards “Standardized Work” • Overheard: “If we all have to do things exactly the same way, won’t our days be boring?” • Most workers like to do things “their own way.” That’s fine, as long as their way is the standardized way. • The standardized way encourages quality, productivity, efficiency and safety. • If workers wish to challenge the "Standardized Work Instructions," that’s fine. It’s even desired and appreciated, in order to continually improve our business. • Continuous improvement is our goal -- the key is that everyone should be completing tasks in the “Current Best Way.” Module 14,15

6. Machine Setups Production Processes Requests for Quotation Safety Assignments Engineering Changes Paperwork Administration Lock-Out / Tag-Out Warehousing Inspection … and many more! It’s Thanksgiving time, and 200 passengers are returning home on a flight. It’s foggy on the ground, and your pilot is getting ready to land at the plane’s destination. The large, carbon black silo is scheduled for service, and you are asked to prepare it for shut down, lock-out and tag-out. An order for a prototype is due next week. You are part of the setup team preparing the CNC machines and loaders for the production activity. Imagine That!Applications for Standardized Work Module 14,15

7. Everyday Use of Standardized Work • It is difficult to get consistent quality and timely output unless you standardize work processes and create Standardized Work Instructions that must be followed – to ensure safety, quality, productivity and efficiency. • By documenting the current best practice, Standardized Work forms the baseline for continuous improvement. • As the standard is improved through creativity and challenges, the new standard becomes the baseline for further improvements, and so on. • Improving standardized work is a never-ending process. Module 14,15

8. Elements of Standardized Work • Standardized work consists of three elements: • The time / rate at which products must be made in a process to meet customer demand. • The precise work sequence in which an operator is to perform tasks. • The standard in-process inventory (of instructions, parts, tools, dies, fixtures, and machines) required to keep the process operating smoothly. • Standardized Work will generally include testing work processes again and again to prove out the “current best ways" of completing tasks. • One of the basic tenets of Standardized Work is that we are always looking for better ways to do this work. Module 14,15

9. Benefits of Standardized Work • The benefits of standardized work include: • documentation of the current process (including clear starting and stopping points), • reductions in variability / increased process stability, • easier training of new operators, • reductions in injuries and strain, and • baseline for improvement activities. • Standardizing the work adds operational discipline to the company culture. • Standardized work is a learning tool that promotes team problem-solving, supports ISO and audits, and enables the development of mistake-proofing devices. Module 14,15

10. Creating Standardized Work • A work standard is a written description of how a process should be done. At its best, it documents a current “best practice;” at a minimum, it provides a performance baseline from which a better approach can be developed. • Establishing standardized work relies on collecting and recording data on a few forms. These forms are used by engineers and front-line supervisors to design the process and by operators to make improvements in their own jobs. Module 14,15

11. Creating Standardized Work (con’t) • Standardized Work Instructions use overview and close-up photos, simple diagrams, and plain text to make work instructions “clear and understandable, even by your 12-year-old.” • In addition, examples of good and defective products are kept nearby, to allow operators to readily review current output against standards. After viewing the slides that follow, let’s identify why these work better than the normal multi-page set of very detailed instructions. Any ideas? Module 14,15

12. Example: Visual Work Instructions Key components: Overviews, photos, diagrams, plain text, and samples. Module 14,15

13. Visual WorkplaceExample: Well-Designed Workstation Inventory Clearly Identified Work Area Clutter-free Everything Located Within Immediate Work Envelope Module 14,15

14. Visual WorkplaceExample: Reaction Plans Where in our facility can we use this type of document? Any ideas? Module 14,15

15. 1.3/4 Ft 2 Ft 5 Ft 5 Ft 4 Ft 3 Ft 4.1/2 Ft 3 Ft 2 Ft Visual WorkplaceExample: Set-up Instructions 63 “ CALENDER OPTIMIZED SETUP FOR SQUARE WOVEN FABRICS JULY 2003 DUSTING UNIT OPEN. POLY COVERING THE DUST APPLICATOR IDLER ROLL (SMOOTH) PLASTIC LET OFF FABRIC LET OFF IDLER ROLLS (SMOOTH) IDLER ROLL (SMOOTH) CALENDER ROLLS COOLING ROLLS DUSTED SHEET WIND-UP PLASTIC LET OFF BARWELL DUSTING UNIT POLY BACKED WIND-UP SPREADER ROLL (CHEVRON) SPREADER ROLL Module 14,15

16. Visual WorkplaceExample: Labels to Allow Quick Identification Module 14,15

17. Mistake-Proofing

18. OOPS!!! • Sept. 2004: NASA's $264 million, 500-pound Genesis space capsule crashed in the Utah desert because a critical piece of equipment that was to trigger release of two parachutes to soften its landing was apparently installed backward. • Sept. 1999: NASA lost the $125 million Mars Climate Observer orbiter when it unexpectedly crashed into the red planet’s surface. The crash was caused when one engineering team used metric units while another team used English units for a key spacecraft operation, resulting in miscommunication and faulty navigation. Mistakes can be simple but very costly! Module 14,15

19. Defects vs. Errors • Humans make errors, and defects arise because errors are made. • It is impossible to eliminate errors from tasks performed by humans. • Errors will not turn into defects if feedback and action takes place at the error stage (quality at the source). • Changing occurrences can reduce reoccurrence. Fewer opportunities means fewer errors. The cause of defects lies in errors committed due to imperfect processes. Defects result from either being unaware of the errors or neglecting to do anything to correct them. Module 14,15

20. Quality Method Analysis • The “Cost of Quality” escalates as product moves up the supply chain (i.e., downstream toward customers): Prevention Before It Happens Detection Before It Escapes Your Sub-Process Inspection After the Fact / Before It Ships Rejection Product at Customer Cost of Quality Impact: Time, Labor, Material, Energy, and Customer Satisfaction / Reputation / Credibility Module 14,15

21. Inspection Methods • There are many types of inspection methods: • Traditional Inspection • Inspectors at the end of the process inspect 100% of the product • Statistical Sampling Inspection • Inspectors at the end of the process inspect only a statistical sample • Acceptance by Lot Sampling • Inspection samples portions of each lot received • Successive Checks • Each operation inspects work of previous operation • Self-Checks • Inspection takes place by operator / machine performing the work No inspection method eliminates the production of defects. Inspection only detects defects AFTER they have been produced (and money has been wasted in time, labor, materials and energy). Module 14,15

22. Planning and Designing Processes • Why not just inspect/test out defects? • No test or inspection is 100% effective in finding defects. If you doubt this, then try this experiment: • Count the number of times the letter "e" appears on this page. • Once you have counted the number of times that "e" has been used, write down your answer on a sheet of paper. • Listen to the range of answers given as the instructor gathers the counts from others in the class. • You will be very surprised by the results! 60 Module 14,15

23. Defect Prevention Approach • 1. Identify and describe the Defect • 2. Identify: Where the Defect is Made, and Where the Defect is Discovered • 3. Analyze the Process or Operation Where the Defect is Originally Made • 4. Determine the Deviation from the “Standard/Target” • 5. Determine the Root Cause of the Defect • 6. Identify Potential Ideas to Eliminate or Detect Defects Earlier • 7. Implement Defect Prevention Techniques Module 14,15

24. Poka-Yoke Design for Manufacture Source Inspection Adaptive Control Defect Prevention Techniques • Characteristics of Mistake-Proof Operations: • Checklist built into process • Process can only be performed correctly • 100% prevention of defects and “escapes” Module 14,15

25. Poka-Yoke • Poka-Yoke is Japanese for mistake-proofing. • It is the creation of devices that either (a) prevent the special causes that result in defects or (b) inexpensively inspect each item produced to determine whether it is acceptable or defective. • Does not require human assistance. • Checklist is built into the process. • Process can only be performed correctly – goal is 100% prevention. Module 14,15

26. Two Poka-Yoke Systems Exist • Control Approach • Shuts down the process when an error occurs • Keeps the suspect part in place when an operation is incomplete • Provides high capability of achieving zero defects • Stops the machine when irregularity is detected • Warning Approach • Signals the operator to stop the process and correct a problem • Why? Sometimes an automatic shutoff is not an option! • Initiates dials, lights and sounds to bring attention to the problem Module 14,15

27. Poka-Yoke Example Simple tools / fixtures determine if the product meets appropriate dimensions (here, 0.200” + 0.010”), and sorts the products into both “good” and “defective” piles. Module 14,15

28. Everyday Poka-Yoke Examples • The fueling area of a car has three mistake-proofing devices: • The filling pipe insert prevents the larger, leaded-fuel or diesel nozzles from being inserted; • The gas cap tether does not allow the motorist to drive off without the cap; and • The gas cap is fitted with a ratchet to signal proper tightness and prevent over-tightening. Parking garages include go / no-go gauges at the entrance to indicate low clearance. Module 14,15

29. Ways of Developing Poka-Yoke Devices • Use the natural geometry of the part and attach a fixture to the machine so that the operator cannot attach work pieces into the die or against the tool in the wrong direction. • Use counters to detect the number of operations and compare it to the standard. If the numbers do not match, a warning light will be turned on or a buzzer will sound. • Use a limit switch to monitor the procedure. If the procedure is not performed correctly, the machine will not operate. • Use color-coding and identification symbols to distinguish between similar parts – e.g., yellow for ‘right-handed parts’, blue for ‘left-handed parts’. Module 14,15

30. Source Inspection • Source Inspection searches for the root cause of the defect at the source of the error and seeks to proactively eliminate the cause of the defect. • Evaluate the 6Ms: Man, Material, Methods, Measurements, Machines, Mother Nature. • Evaluate the 4Ps: Policies, Procedures, People, Plant/Technology • Evaluate the Process Steps • Source Inspection is typically used in tooling environments: • Machine is producing bad parts (out of tolerance) • Parts are out of tolerance due to dull or broken tooling • Tooling was not inspected prior to setup or running parts • Inspect tooling before each run and replace, if necessary Module 14,15

31. Design for Manufacture • Design for Manufacture (DFM) is a process originating in sustaining engineering or new product development to eliminate the opportunity to produce the defect on the shop floor. • Design for Manufacture (in terms of defect prevention) uses techniques such as asymmetrical assemblies, locating pins, commonality of parts, etc. to simplify operators’ decision-making, thus reducing the opportunity for creating a defect. Module 14,15

32. In the assembly of the single handle faucet control valve, the cap was often installed backwards, thus creating a leak. 10% Defects To prevent the defect, the cap was made asymmetrical and therefore it could only go one way – the right way. 0% Defects Defect Prevention Example:Design for Manufacture (and Poka-Yoke) BEFORE AFTER Module 14,15

33. A method which detects errors or possible errors during processes before they can become defects SPC UCL Target LCL Adaptive Control Line-control systems that use SPC control charts to constantly monitor and then adjust key operating parameters. Module 14,15

34. Takeaways • Standardized Work uses team-derived best practices to enable employees to increase production and efficiency, improve overall quality, and enjoy a safer working environment. • Visual tools (work instructions, labeling and coding, reaction plans, etc.) improve overall communications. • Inspection techniques can never eliminate defects. Inspection plus defect prevention are key to improving overall quality, profitability and customer satisfaction. • Many defect prevention techniques can be driven by simple changes in processes, design and automation. Module 14,15

35. The Future Goals Quality Products

36. Why is profit down? • Higher cost of raw materials. • Higher cost of benefits for employees. • Higher cost for worker’s comp benefits. • Higher utility costs. • Lower profit margins to be competitive. • Higher scrap costs. • Lower production output. Module 14,15

37. What hurts our competitiveness? • Waste (time & materials)…..scrap • Material Costs • Workers’ Comp Claims • Poor Quality • Inability to make on-time delivery to customers • Inability to increase capacity Module 14,15

38. Attendance • Attendance • 2002 +1.66 • 2003 -0.42 • 2004 -1.21 • 2005 0.37 • 2006 0.33 • Poor Attendance • Affects Scheduling • Affects Production • Affects our Customers Module 14,15

39. Goal #1- Stay in Business • The competition is getting tougher • We need to improve our processes (LSS) • We have not improved much in the areas of scrap and productivity during 2007. Module 14,15

40. LSS • Six Sigma • Process Analysis • Data Analysis • Root Cause Analysis • Lean • Waste Reduction • Value Stream Mapping • Increase production – without sacrificing quality. • The key is what do we do with this knowledge and new skills? Module 14,15

41. Lean Six Sigma Module 14,15

42. Goal #2 • Quality • Standardize • Accountability • Discipline Module 14,15

43. THE IMPORTANCE OF QUALITY MISSION STATEMENT (QUALITY POLICY) OHIO ELECTRIC MOTORS, INC. IS COMMITTED TO TOTAL CUSTOMER SATISFACTION AND CONTINUAL IMPROVEMENT OF THE QUALITY MANAGEMENT SYSTEM. THESE GOALS ARE ACHIEVED THROUGH A COMMITMENT TO COMPLY WITH REQUIREMENTS OF ISO 9001:2000, AND BY PRODUCING HIGH QUALITY PRODUCTS, DELIVERED ON TIME, AT A COST THAT WILL ACHIEVE A PROFIT TO KEEP THE COMPANY HEALTHY FOR A LONG TERM COMMITMENT TO OUR CUSTOMERS Ken Simmons General Manager Module 14,15

44. THE IMPORTANCE OF QUALITY MISSION STATEMENT MADISON MANUFACTURING COMPANY AND ITS DEDICATED EMPLOYEES ARE COMMITTED TO PROVIDING A QUALITY DEPENDABLE PRODUCT, DELIVERED ON TIME THAT WILL FULFILL OUR CUSTOMER'S NEEDS. THIS IS ENSURED WITH TEAMWORK, COUPLED WITH A FULL COMMITMENT TO COMPLY WITH, AND CONTINUOUSLY IMPROVE OUR QUALITY MANAGEMENT SYSTEM. Ken Simmons General Manager Module 14,15

45. PRODUCTIVITY • Efficiency & Quality • Continual Improvement • Standards in Place • Training Module 14,15

46. Quality at Ohio Electric Motors Module 14,15

47. Quality at Madison Mfg. Co. Module 14,15