Supplier Process Assessment

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Supplier Process Assessment

• Training Activity

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Supplier Process Assessment
Agenda

• Activity Time
• Introductions 1000 am 1005 am
• Training Purpose 1005 am 1015 am
• Classroom Training 1015 am 1100 am
• Plant Floor Exercise 1100 am 100 pm
• Discuss Results/Adjust 100 pm 200 pm
• (working lunch)
• Conclude 200pm

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Supplier Process Assessment
Why Are You Here?

• To Learn
• SPA methodology
• How to properly evaluate a plant
• How to make effective SPA suggestions
• How to create SPA improvement plans
• How to ensure successful implementation

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Supplier Process Assessment
Background of SPA

• Past 9 years (third revision)
• Annual Activity
• Purchasings SSG Conducted
• Supplier Growth (Cost, Quality, Delivery)
• Growth through kaizen

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Toyota Production System(TPS)

• Overview

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TPS Historical Perspective
1902 Sakichi Toyoda Invented automatic looms
Ground Work Reduced defects/increased yield
through Jidoka Pokayoke 1930 Kiichiro Toyoda
Studied Fords (conveyor line) manufacturing
system Ground Work Just In Time production
(J.I.T.) 1956 Taiichi Ohno Visited U.S.
automobile plants supermarkets Ground
Work Developed Pull System
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Goals of the Toyota Production System

• Better ways to ensure production quality
• A working environment for maximum potential
• Lower costs by total elimination of MUDA
• Strong Flexible Company

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TPS STRUCTURE
TOYOTA PRODUCTION SYSTEM
J.I.T.
JIDOKA
HR
STANDARDIZED WORK
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Lets Now Look At The SPA Tool

• Standard Format
• 13 Topics

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V. STANDARDIZED SPA FORMAT
COMMENTS/SUGGESTIONS
SCORE ( )
TOPIC 2 Work Cell / Standardized Work
?
Comments

5
-
Operators actual operation is checked against SW
on daily basis
to identify any discrepancies and documented.
4
-
Work is well balanced and there is no wait time
during each cyc
le.
SW is periodically checked and updated.
3
-
Some work is unbalanced. SW is clear but not
being followed
exactly each cycle. Takt time is clear and
posted. Hourly prod
uction
is being tracked (PC Board).
2
-
Some form of work instruction exists. Takt
time/target cycle t
ime
is clear.
Suggestions
1
-
Work is unbalanced. SW is not used. No use of
takt time/target
cycle time. No tracking of hourly production.

Takt time
-
the time which should be taken to produce a
component or
one vehicle
Takt
Time
actual operation time per shift (in seconds)
required total production quantity per shift

Standardized Work
-
A tool which provides a consistent framework
for jobs centered around human motion and creates
an efficient
production sequence without waste.

Workers should be on the inside of the cell and
parts supplied f
rom
outside of the cell.
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2003 PROCESS ASSESSMENT FORM New United Motor
Manufacturing Incorporated Purchasing Supplier
Support Group  
  Company Name Location Date

SPA Topics 1. Production
System (Pull System) 2. Work Cell/Standardized
Work 3. Process Flow 4. Change Over 5.
Pokayoke 6. Visual Control/Andon 7. 5S 8.
Inventory Management 9. Kaizen Activities 10.
Training Programs 11. Preventive Maintenance 12.
Safety Programs 13. Other Information
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Supplier Process Assessment

• Topic 1 Production System (Pull System)
• As products are sold, orders are generated to
  replace the sold inventory
• A good example of a Pull System is a grocery
  store, where items on the shelves are replaced as
  they are used.

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TOPIC 1 Production System (Pull System)
?

Comments Suggestions
5 - Pull system that considers heijunka.
Production levels are periodically adjusted to
reflect customer orders. Kanban quantity per
container is minimal. 4 - Pull system plant wide
which clearly shows production progress. All
component parts and raw materials are also on
pull system. 3 - Pull system is linked through
all production processes. Uses a flexible
manpower system. Kanban rules are followed. 2 -
Pull system which is only tied to a single
process. Uses internal kanban to trigger
production. 1 - Push system which uses a MRP
system to generate production schedule for
operators. Each process is independent of each
other.
Kanban - a tool to achieve just-in-time
production, that is, to supply the right parts,
at the right time, in the right amount. Heijunka
- leveling of production. Flexible manpower line
- can meet changing production requirement with
any number of workers, without lowering
productivity. The kanban rules 1. only good
parts move 2. following processes pull 3.
quantity produced matches quantity withdrawn 4.
no production if no kanban 5. parts move only
with kanban attached 6. only in kanban
quantity There are clearly defined roles as to
who is to bring what, where and when.
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Supplier Process Assessment

• Topic 2 Work Cell / Standardized Work
• Standardized Work is a tool that documents
• the steps of a process or operation.
• Efficiency
• Quality
• Safety
• Elimination of Waste

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TOPIC 2 Work Cell / Standardized Work
?
Comments Suggestions
5 - Operators actual operation is checked against
SW on daily basis to identify any discrepancies
and documented. 4 - Work is well balanced and
there is no wait time during each cycle. SW is
periodically checked and updated. 3 - Some work
is unbalanced. SW is clear but not being
followed exactly each cycle. Takt time is clear
and posted. Hourly production is being tracked
(PC Board). 2 - Some form of work instruction
exists. Takt time/target cycle time is clear.
1 - Work is unbalanced. SW is not used. No use
of takt time/target cycle time. No tracking of
hourly production.

• Takt time - the time which should be taken to
  produce a component or
• one vehicle
• Takt Time actual operation time per shift (in
  seconds)
• required total production
  quantity per shift
• Standardized Work - A tool which provides a
  consistent framework
• for jobs centered around human motion and creates
  an efficient
• production sequence without waste.
• Workers should be on the inside of the cell and
  parts supplied from
• outside of the cell.

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Supplier Process Assessment
Topic 3 Process Flow One Piece Flow products
that move from one process to the next process ,
one piece at a time.
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?
TOPIC 3 Process Flow
5 - Secondary processes (paint, outsource, etc.)
are tied together plant wide. 4 - Material
flow in and out of the work cell is clear and on
a scheduled conveyance route. All components
and raw materials have a clear flow. 3 - Each
proceeding process is clearly linked to the
following process and it is easy to follow
material flow. 2 - Individual processes maintain
one piece flow but process to process flow is
difficult to follow. 1 - All processes are
individual. Piece flow is in lots. WIP is not
standard.

• Comments
• Suggestions

• One piece flow - products move from one process
  to the next process
• one piece at a time.

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Supplier Process Assessment

• Topic 4 Change Over (C/O)
• The action of changing dies or molds in an
• orderly and efficient manner.
• Goal of Change Over
• To minimize down time
• Inventory

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TOPIC 4 Change Over (C/O)
?
Comments Suggestions
5 - C/O team includes machine operator. C/O time
is short (less than 10 minutes) and this standard
is practiced plant wide. Ratio of C/O time to
production time is optimized. 4 - A
model/showcase C/O example exists (less than 10
minutes). Kaizen activities occur to reduce C/O
time. Multiple C/Os occur each shift. 3 -
Standardized work is clear and being used and
off-line and on-line C/O procedures are
separated. C/O target time is clear and
tracked. Tooling and jigs are color coded or
identified. 2 - Machine assignment is clear
(dedicated). Production schedule is clear. C/O
standardized work does exist but off-line and
on-line C/O procedures are not separated. 1 -
Machine assignment is not clear. C/O
standardized work does not exist. C/O is long
and in large sizes. C/O time is not tracked.

• Off-line set up (external) those parts of the
  set-up operation which
• can be done without stopping the line or
  machinery (this should be
• maximized).
• On-line set up (internal) those operations which
  cannot be carried
• out without stopping the line or machines (this
  should be minimized).
• C/O instructions should identify both the
  off-line and on-line actions,
• target time, recording of each C/O and should be
  posted.
• Jigs, tools, dies and other related equipment
  should be color coded.
• Off-line C/O activities should be maximized.
• Maximum of 10-15 percent of daily production time
  should be used
• for C/O activity.

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Supplier Process Assessment
Topic 5 Pokayoke Fool proof devices that ensure
quality in the process. These devices will not
allow the process to proceed unless well defined
conditions for quality are met (correct color,
orientation, position, fit, torque, etc.)
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?
TOPIC 5 Pokayoke

• Comments
• Suggestions

5 - A pokayoke mapping system exists to track all
pokayoke locations and functions. Each pokayoke
is evaluated to ensure 100 effectiveness. A
pokayoke implementation system is planned at line
design stage. 4 - Pokayoke devices are checked
before each shift. Pokayoke devices are fail
safe (easily identified if not working).
Picture/diagram of pokayoke on machine is
posted. (Record daily and keep records) 3 -
Pokayoke devices are checked on a daily basis.
Machines have and workers understand the
function of pokayoke devices. Pokayoke devices
are labeled or colored for identification. 2 -
Some equipment has pokayoke devices. Pokayoke
devices should be tested using a known and
clearly identified bad part. Pokayoke devices
are checked periodically. 1 - There are no
pokayoke devices on any machines.

• All critical characteristics should have some
  kind of pokayoke device
• to detect any abnormality.
• Once an abnormality is found, the production line
  should stop.
• Pokayoke device should be simple, robust,
  reliable and cost effective.
• Review all processes plant-wide for additional
  pokayoke applications.
• Jidoka - Quality must be built in at each
  process.
• Pokayoke device should be designed so it can not
  be bypassed.

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Supplier Process Assessment
Topic 6 Visual Control / Andon Andon is a
audio/visual system that is used to signal and
identify problems in the manufacturing process.
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TOPIC 6 Visual Control / Andon
?
5 - Quick response time for team leader to
respond and fix problem. 4 - A clear action
procedure is in place for an abnormal situation
and understood by everyone. 3 -
Operators/management understand meaning of
signals. Andon devices can be seen easily. 2 -
There is a clear understanding of a
normal/abnormal situation. There is a
standardized signal system (lights/alarms)
throughout the plant to alert everyone of an
abnormal situation. 1 - There is no type of
signal (lights/alarm) to alert everyone in the
case of an abnormal situation.
Comments Suggestions

• There should be a way for all team members to
  notify team leader for
• help from their workstation in the case of an
  abnormal situation.
• The andon should notify the correct person for
  the trouble at hand.
• Emergency stops or equipment problems should
  notify the
• maintenance department and production problems
  should notify
• production management.
• Targets should be set for quick response and
  repair time.
• Andon concept is utilized throughout the plant
  (Assy., Weld, Paint)

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Supplier Process Assessment

• Topic 7 5S
• 5S is a system for work place organization
• Sort Eliminate unnecessary items
• Sweep - Clean
• Straighten Arrange in orderly fashion
• Standardize Consistent methods
• Sustain Maintenance of first 4 Ss

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?
TOPIC 7 5S
5 - 5S is sustained by individual team members
through clear assignment and routine schedule. 4
- Practicing of 5S activity is very visible
throughout the entire plant operation including
each individual work-site. Method and standards
are clear and followed plant wide and audited on
a regular basis. 3 - Practicing of 5S activity
is visible primarily in the work-sites. Documented
procedures/standards exist but are not
consistently followed. 2 - Practicing of 5S
activity is visible but limited. There is no
discipline to keep the areas tidy and
organized. 1 - 5S activity applied to model cell
was not maintained.
Comments Suggestions

• 5S Principle - There should be a place for
  everything and everything
• in its place. (Sort, Sweep, Straighten,
  Standardize, Sustain)
• Common tools, parts, and equipment locations
  should be easily
• identified.
• Cleanup should be done each shift by the
  operators and audited
• periodically by team leader.
• All unnecessary items have been removed from the
  work-site.

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Supplier Process Assessment

• Topic 8 Inventory Management
• Activity to minimize the amount of material (Raw,
  WIP, FG) necessary to maintain production.
• Controls
• FIFO (First In First Out)
• Visual Controls (labels, pictures, etc.)
• Min/Max Levels

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?
TOPIC 8 Inventory Management

• Comments
• Suggestions

5 - Inventory level adjustments are made
regularly to account for usage fluctuations.
4 - Min./max. level rules exist and are
followed (no overflow). Visual controls are
used to prevent mixing of parts. 3 - FIFO system
is clear and being followed. There are
min./max. levels determined but not consistently
followed. Some overflow exists. 2 - All
inventory locations are established and easily
identified. Racks and containers are labeled.
FIFO system exists but not being sustained. No
inventory adjustments are made to account for
usage fluctuations. 1 - Inventory locations
are partially identified and labeled
(racks/containers). FIFO is not controlled.

• Parts locations must be clearly labeled.
• FIFO (first in first out) should be practiced.
• Containers should be labeled before being put
  into stores.
• Visual controls for prevention of mixed parts
• (i.e. pictures, sample parts attached to rack,
  etc.).

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Supplier Process Assessment

• Topic 9 Kaizen Activities
• Process of applying continuous improvement to
  enhance
• aSuccessful kaizen activity involves all T/Ms

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?
TOPIC 9 Kaizen Activities
5 - Kaizen activity is tracked and tied to
company goals and objectives 4 - There is a
company wide kaizen program. There is strong
team member involvement and initiative. 3 -
The company culture acknowledges the benefits of
kaizen. Management supports kaizen teams and
schedules time for kaizen team activity during
work day. 2 - There is some type of kaizen
program for the team members. There is clear
understanding among all team members that
individual suggestions strengthen the company.
1 - There is no kaizen activity. A suggestion
system exists but there is limited feedback.
Comments Suggestions

• Kaizen - Continuous Improvement
• Kaizen activities should be of the norm and not
  the exception.
• All members of the plant should be involved in
  kaizen activities.
• Kaizen activities should be a part of the annual
  goals and objectives
• of all departments and the company.
• Kaizen should be based on the identification of
  the 7 types of muda
• (overproduction, motion, waiting, conveyance,
  processing, inventory,
• correction).

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Supplier Process Assessment

• Topic 10 Training Programs
• Training programs are necessary for future growth
  of the company and its T/Ms.
• Multi-skilled T/Ms benefit the company through
  working knowledge of various operations.

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?
TOPIC 10 Training Programs
5 - A team member development/career path program
exists for career opportunities. 4 - The
training status of all team members is posted
(versatility chart). Team members are provided
with refresher training on a regularly scheduled
basis. 3 - Team members are trained to be
multi-skilled. Training status is documented
and a training schedule is available. 2 - There
is a formal training program for all new hired
team members. Team members are only trained on
one operation. 1 - There is a training program
for new hired team members but is only performed
in the work-site where the team member will be
working (basically, on the job training).
Comments Suggestions

• The company should have a formal training program
  that addresses
• the needs of the company, not only for today, but
  also for future
• growth.
• If possible, there should be a dedicated training
  department with
• qualified and certified trainers.
• Training requirements for all level of employees
  should be posted
• (not only what team members need for their
  current jobs but also
• what they need for advancement).
• Kaizen and process improvement should be basic
  for line team
• members. Problem solving and standardized work
  are also highly
• recommended.

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Supplier Process Assessment
Topic 11 Preventive Maintenance Regularly
scheduled maintenance of equipment by skilled
team members to prolong equipment life and
minimize unscheduled down time.
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TOPIC 11 Preventive Maintenance
?
5 - Plant wide TPM with operator involved in
daily maintenance. Clear assignments for each
team member and all work assignments are signed
off. Time is allocated for TPM. Tooling
calibration program exists to ensure accuracy of
equipment. 4 - Plant wide preventive maintenance
system with set replacement parts inventory.
Also utilizes visual control tracking to identify
open/closed work orders. Root causes of
problems are determined and countermeasures
incorporated into PM system. 3 - Utilizes
preventive maintenance system, based on
historical data tracking and has a preventive
maintenance schedule with planned down time for
maintenance (simultaneously has down time
reduction activity). 2 - Tracking system to
identify down time (analyze data) limited to
specific equipment or area. 1 - Reactionary
approach to repair. Simple trouble shooting only.
Comments Suggestions
PM - preventive Maintenance (regularly scheduled
maintenance of equipment by skilled maintenance
team members). TPM - Total preventive
Maintenance (involves operators in daily
discipline in cleaning and light maintenance of
equipment).
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Supplier Process Assessment

• Topic 12 Safety Programs
• Safety programs are essential in maintaining a
  healthy and happy workforce.
• Accident/injury free companies benefit from
• Lower Insurance Premiums
• Reduced Absenteeism
• Improved Efficiency

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TOPIC 12 Safety Programs
?

• Comments
• Suggestions

5 - Benchmarks industry best practices for safety
and maintains an accident free workplace. 4 -
Safety Coordinator participates on a daily basis
and Audit Team reviews job site safety and
compliance. Accident tracking and
countermeasures are adopted and analyzed. 3 -
All safety requirements are up to date and
available MSDS PPE Forklift Licenses
Posted Safety Training Records 2 - The safety
program is used and enforced by all team members.
Visual safety information, evacuation plan and
lost time accident record is posted in the
plant. 1 - There is a written safety program and
it is available to all team members. Safe work
conditions and work habits are encouraged and
trained but are not strictly enforced

• All required safety equipment should be supplied
  to all team members
• and visitors.
• All safety information/requirements should be
  posted throughout the
• plant.
• All Material Safety Data Sheets should be up to
  date and on file.
• All machines should have the proper safety
  features on them such as
• light curtains, lockout doors, two hand operation
  buttons, safety mats,
• etc.
• Accident Free Workplace - There should be no OSHA
  recordable
• incidents for one year.

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Supplier Process Assessment
Topic 13 Other Information Gathers
miscellaneous pertinent information relative to
our business relationship.
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TOPIC 13 Other
NA
1 - Scrap 2 - Efficiency 3 - Attendance 4
- Turnover 5 - Number of employees 6 - Number
of shifts 7 - Hours/shift 8 - Plant Size 9
- ISO Certification date certified
(Quality/Environmental) 10 - Shipments/day
(Car/Truck) 11 - Union Affiliation 12 - Percent
of total business NUMMI represents 13 - NUMMI
production (car, truck or both) 14 - Other
manufacturing at this location 15 - Supplier to
GAMA 16 - Supplier to other NAMCs 17 -
Returnable packaging issues
1 - 2 - 3 - 4 - 5 - 6 - 7 -
8 - 9 - 10 - 11 - 12 - 13 - 14 - 15 - 16
- 17 -
Handouts Provided
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Supplier Process Assessment

• EXPECTATION
• Each supplier to conduct SPA of their own plant
• Each supplier to develop action plan to improve
  overall capability

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Supplier Process Assessment

• VI. Improvement Plan (example)

Key Plan Items
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(No Transcript)
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Conclusion