Ensuring Value (Part 3)

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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

3
Standardized Work

• Same job, same way, every time."

RD010402
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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

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Reactions and Resistance Moving Towards
Standardized Work

• Overheard If we all have to do things exactly
  the same way, wont our days be boring?
• Most workers like to do things their own way.
  Thats 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," thats fine. Its 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.

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Imagine That!Applications for Standardized Work

• Machine Setups
• Production Processes
• Requests for Quotation
• Safety Assignments
• Engineering Changes
• Paperwork Administration
• Lock-Out / Tag-Out
• Warehousing
• Inspection
• and many more!

• Its Thanksgiving time, and 200 passengers are
  returning home on a flight. Its foggy on the
  ground, and your pilot is getting ready to land
  at the planes 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.

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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.

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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.

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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.

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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.

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Creating Standardized Work (cont)

• 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, lets
identify why these work better than the normal
multi-page set of very detailed instructions.
Any ideas?
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Example Visual Work Instructions
Key components Overviews, photos, diagrams,
plain text, and samples.
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Visual WorkplaceExample Well-Designed
Workstation

• Inventory Clearly Identified
• Work Area Clutter-free
• Everything Located Within Immediate Work Envelope

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Visual WorkplaceExample Reaction Plans
Where in our facility can we use this type of
document?
Any ideas?
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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)
CALENDER ROLLS
IDLER ROLL (SMOOTH)
COOLING ROLLS
BARWELL DUSTING UNIT
PLASTIC LET OFF
DUSTED SHEET WIND-UP
POLY BACKED WIND-UP
SPREADER ROLL (CHEVRON)
SPREADER ROLL
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Visual WorkplaceExample Labels to Allow Quick
Identification
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Mistake-Proofing
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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 planets 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!
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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.
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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
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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).
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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
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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

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Defect Prevention Techniques

• Characteristics of Mistake-Proof Operations
• Checklist built into process
• Process can only be performed correctly
• 100 prevention of defects and escapes

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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.

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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

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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.
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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.
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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.

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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

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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.

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Defect Prevention ExampleDesign for Manufacture
(and Poka-Yoke)

• 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

BEFORE
AFTER
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Adaptive Control
Line-control systems that use SPC control charts
to constantly monitor and then adjust key
operating parameters.

• A method which detects errors or possible errors
  during processes before they can become defects

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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.

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The Future

• Goals
• Quality
• Products

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Why is profit down?

• Higher cost of raw materials.
• Higher cost of benefits for employees.
• Higher cost for workers comp benefits.
• Higher utility costs.
• Lower profit margins to be competitive.
• Higher scrap costs.
• Lower production output.

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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

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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

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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.

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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?

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Lean Six Sigma
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Goal 2

• Quality
• Standardize
• Accountability
• Discipline

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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 90012000, 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
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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
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PRODUCTIVITY

• Efficiency Quality
• Continual Improvement
• Standards in Place
• Training

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Quality at Ohio Electric Motors
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Quality at Madison Mfg. Co.