What Does Manufacturing Excellence Look Like

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What Does Manufacturing Excellence Look Like

• Ralph Keller
• President, Association for Manufacturing
  Excellence (AME)

2
Agenda

• Introduction (Who is this guy)
• Questions to Ask Yourself
• Example of Kaizen Event
• What Happens to the Metrics
• Q A

3
Customer Satisfaction

• Look at the plant like youre a customer
• Does the plant sell itself?
• Would you buy product from this plant?
• Does everyone know the customer needs?
• Do they track delivery performance to customer
  REQESTED date?
• Is it posted so everyone knows the metric?
• Do products less than 3 years old account for a
  substantial portion of sales?

4
Safety, Environment, Cleanliness

• Is operator safety a key value?
• Is safety data tracked and posted?
• Is the plant clean, well lighted, well organized
  and orderly?
• Is there a place for everything and is the
  discipline in place to follow it?
• Is the value of the production material respected
  with it well organized and protected?
• Ask yourself if you would work here?

5
Visual Management

• Can you tell from the visual signals around the
  plant how they are performing?
• Does the visible information tell the operators
  if they are working to schedule and what jobs to
  work on next?
• Are key performance metrics tracked and displayed
  for everyone to see?
• Look for product identification on boxes,
  containers, carts etc.
• Are part numbers and quantities easily
  determined?

6
Scheduling Systems

• Is the plant MRP driven with work orders and lots
  of paperwork on the floor?
• Does the facility use demand pull systems for
  customer orders or do they use push production
  according to a sales forecast?
• Are operations scheduled to customer demand using
  TAKT time?
• Are suppliers scheduled to deliver Just in Time
  according to actual demand instead of fixed
  quantity delivery (ala economic order quantity)?

7
Product Material Flows, Space Utilization

• Is the operation capable of Every Product Every
  Day (EPED)?
• Are they running small batch sizes or single
  piece flow with rapid changeovers?
• Are operations organized in product cells?
• Does material flow through all processes in a
  cell instead of being moved to each process?
• Are materials brought to the operators or do they
  go get them?
• How are they moved throughout the operation?

8
Inventory WIP Levels

• Are materials stocked at point of use or in a
  central stockroom location?
• Do they measure and track inventory turns for raw
  material, WIP and finished goods?
• World class is over 40 for these combined, most
  companies are less than 5.
• Do they measure and track value-added time to
  total manufacturing lead time?
• Do they do an annual physical inventory or use
  cycle counting?
• Whats their inventory accuracy?

9
People Teamwork, Skill Level and Motivation

• Does the operation have a formal cross-training
  program?
• Is there a training matrix posted?
• On your tour, are employees friendly and willing
  to discuss their operation?
• Are there operator work instructions posted at
  each work station and are they used?
• Is there evidence of formal systems to support
  employees (training, recognition, rewards for
  performance over the norm, appreciation perks)

10
Equipment and Tooling

• Is the equipment clean and devoid of drip pans,
  oil absorbent pigs, and available for use?
• Is there a formal Total Productive Maintenance
  program with OEE calculations?
• Are there standard changeover times for each
  piece of equipment posted and tracked?
• Are tooling and fixtures clean, organized and
  stored by the equipment for use?
• Are maintenance tasks separated between operator
  tasks and maintenance staff?
• Does the organization focus on keeping old
  equipment well maintained instead of buying new?

11
Complexity Variability

• Does the organization appear to try to keep
  things simple?
• Use common parts.
• Eliminate transactions (backflush).
• High direct to indirect ratio (over 2 to 1)
• Is there a supplier reduction program in place to
  develop supplier partnerships?
• Are there more than 5 key performance metrics
  that people are expected to track?
• Is there a visible effort to use common
  processes, components and tooling whenever
  possible?

12
Supply Chain Integration

• Are suppliers involved in product development
  from the beginning?
• Is there a supplier rating system in place and is
  this communicated regularly?
• Are supplier deliveries based on customer pull
  and Kanban systems instead of MRP?
• Are supplier delivery schedules set by purchasing
  or shop operations?
• Are there joint company/supplier teams in place
  to take cost out of the supply chain?

13
Quality System Deployment

• Is the company ISO or QS certified?
• Are their cross functional problem solving teams
  utilized to reduce defects?
• Is there a continuous improvement culture in
  place with defined goals and results?
• How are defect levels measured (percent defective
  or PPM)?
• Who handles customer complaints?
• Is the focus on quality from the eyes of the
  customer or on adherence to specifications?

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Kaizen Event - Before
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Kaizen Event - Four Days Later
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(No Transcript)
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The Power of Lean!Percentage Improvements

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Average Kaizen Improvements
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Questions?