Process Improvement for a Materials Perspective

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Process Improvement from a Materials Perspective
Solutions looking for problems or Problems
looking for solutions?
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Process Improvement from a Materials Perspective

• Materials utilization
• How can processes be improved
• Eliminating/Replacing materials
• Replacing Solvent with Aqueous Cleaners
• Reusing materials
• The Army has recently authorized the use of
  re-refined used motor oil for use in ground
  equipment
• Recycling materials, and
• paper waste
• Consolidating/eliminating process steps.

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Expanding the Relationship

• Gather information
• Industrial or Manufacturing Directory
• SIC code
• Sales
• Size
• Dun Bradstreet
• Company history
• Personnel profiles
• Financial report

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Expanding the Relationship

• Made several visits to the facility
• Observed what they do
• Met the Facility Manager and supervisors
• Implemented Several Pollution Prevention Projects
• Replaced Solvents with Aqueous Cleaners
• Introduced Membrane Filtration on Aqueous
  Cleaners
• Implemented Rag Recycling to Reduce the Volume of
  Solid Waste

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Expanding the Relationship

• Trusted
• Useful
• Cost effective, and
• Credible.

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Follow Up Call

• Bumpers-R-Us Corporation
• Mr. Sid E. Ways
• Process line manager
• This scenario is an example only and is not used
  to imply
• that any member of NIST, IMEC, or any other
  organization
• affiliated with NIST is not fully capable in the
  performance
• of their duties.

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Good Job!

• Solved another problem
• Increased client satisfaction,
• Gained more trust and influence,
• One more bean to count, and
• Big project is on the horizon!!

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Follow-Up

• 3 months later
• Pitch the Big project
• Programmable Logic Control (PLC)

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Solutions Looking for Problems

• If the shoe doesnt fit -
• theres something wrong with your foot
• Promoting inappropriate changes
• Dont see the whole picture
• Dont understand the problem
• Dont understand the solution
• Solving the problem at the source.

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Project Opportunity Assessment

• Set up a meeting
• Reviewed the problem,
• Mapped the process,
• Found the root cause of the problem, and
• Brainstormed a solution as a team.

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Coming Up

• How to develop a problem statement,
• How to map a production process,
• How to identify loss reduction opportunities,
• How to use a material loss assessment, and
• How to present your information.

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Next Up

• Process Mapping and Root Cause Analysis

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B
A
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B
A
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B
A
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When the map is complete..the route becomes
clear

• Ancient Chinese Proverb

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Process Analysis Techniques

• Problem Definition
• Process Mapping
• Root Cause Analysis
• Site Assessments
• Identifying Loss Reduction Opportunities

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Problem Definition

• Involves defining the
• What?
• When?
• Where?
• Significance

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Problem Definition Step 1What?

• What opportunity will you address?
• What issue keeps facility manager awake at night?
• What is their pain?
• What is their passion?
• Key tools
• TOP 10 Self-Assessment
• Opportunity Prioritization Matrix
• Interviews/Surveys
• Scrap/reject reports
• Functional Assessments

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Problem Definition Step 2When?

• When did the problem appear?
• Try to pinpoint precise dates/times
• Did problem coincide with something recently
  implemented?

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Problem Definition Step 3Where?

• Narrow the boundaries!
• Did problem occur on
• One shift?
• One activity?
• One supplier?
• One material?
• One machine?

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Historical vs. Newly-Emerged Problems
Anomaly
Historical Reject Level
Question Where is the opportunity!?
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Problem Definition Step 4Significance!

• Measure the impact of the problem
• Is it important to the company?
• Is it defined in terms of the companys decision
  maker can understand?
• Will the elimination of the problem improve the
  companys bottom line?

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Problem Definition Summary

• Combine the
• What?
• When?
• Where?
• Significance
• Develop a problem statement or effect

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Initial Problem Statement

• NOTE This is the problem as they PERCEIVE it
• May only be a symptom of the actual root cause
• Provides insight regarding parameters to monitor
  in process mapping

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Process Mapping

• Why should we map a process?
• Improve process knowledge and understanding
• Identify and correct problem areas
• Identify loss reduction opportunities
• Determine usage and fate of raw materials and
  other resources

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Three Questions Used in Process Mapping

• What happens next?
• What are the inputs?
• What are the outputs?

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Complicating Factors

• General vs. Detailed Processes
• Ancillary Processes
• Intermittent Processes
• Process Upsets
• Looping Processes
• Splitting Processes

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Military Root Cause Analysis

• Vehicle Maintenance
• Repair of Vehicle Sent from Organizational Shop
• Stated Problem (according to Environmental
  Manager)
• Too Much Oily Wastewater is Being Generated

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General Process Map
Organizational Shop
Transportation to Higher Level Shop
Organizational Shop
Higher Level Shop
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Vehicle Repair Process
Repair Need Identified by Operator
Vehicle Washed to Identify Source of Problem
Repair Verified
Vehicle Released to Organizational Unit
Vehicle Washed At Shop
Parts Ordered
Vehicle Transported Back to Unit
Transported to Higher Shop For Repair
Repair is Made
Road Tested
Inspected at Higher Shop
Vehicle Washed to Check for Leaks
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Process loss problem example

• Bumper manufacturer
• Stamping and electroplating operations
• Stated Problem (according to plant manager)
• Electroplating operations cant keep up with
  stamping operations

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General Process Map
Powder Coating
20,000 units/yr
Receiving
Stamping
Shipping
50,000 units/yr
Electroplating
50,000 units/yr
30,000 units/yr
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Electroplating Process(Time Study)
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Electroplating Process(Time Study)
OR
OR
dwell 3 sec.
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Root Cause Analysis

• Used to establish cause-and-effect
• Theory - there is a direct cause for a problem
• Determine the sources of problems
• Personnel
• Machine
• Method
• Material
• Management
• Environment

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Personnel Oriented Problems

• Lack of training
• Manpower availability
• Safety/Industrial hygiene
• Labor Relations

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Machine Oriented Problems

• Antiquated Equipment
• Wrong equipment for Application
• Under/over sized equipment
• Worn out equipment

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Method Oriented Problems

• Productivity (cycle time) Problems
• Bottlenecks
• Downtime and tool change time
• Wrong SOPs
• Lack of measurement
• Poor paperwork flow
• Delivery problems

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Management Oriented Problems

• Increased Costs
• Poor quality of Parts
• Customer relations
• Vendor relations
• Labor relations

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Material Oriented Problems

• Too many rejected parts
• Excessive cost increases
• Too much waste generation
• Regulatory problems
• Inventory Control Problems
• Energy Efficiency
• Work in Progress

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Environment Oriented Problems

• Government Regulations
• Competition
• Transportation Access
• Utility Access

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Too Much Oily Wastewater Is Being Generated
Vehicles Washed Before Repair
Vehicle is Washed After Repair
SOP
SOP
To Make Sure Repair is Complete
So Mechanic Can See Source of Leak
So That The Right Parts Are Ordered
So the Vehicle Can Be Fixed Right the First Time
So the Vehicle Can Be Fixed Right the First Time
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Electroplating Process(Materials Study)
T3
Electro Clean
3,920 gal. caustic NaOH 10-12 oz/gal 170-180
F Dumped every 45 days
T5
Counterflow Rinse
4.1 gpm removes electroclean residue
T5a
T6
Etches surface 10-15 HCl dumped every 1-2 weeks
Acid HCL Dip
T7
6 gpm optimum runs less
Rinse
T10
2300 gal. dumped every 60 days to T3
Electro Clean
T12
Counterflow Rinse
5.4 gpm
T12a
T13
1,832 gal 10-15 HCL dumped every 2 weeks to
acid dump tanks
Acid HCL Dip
T14
Counterflow Rinse
5.4 gpm
T14a
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Electroplating Process(Materials Study)
T17
Semi Brite Ni Plate
OR
T18
Semi Brite Ni Plate
OR
T19
Semi Brite Ni Plate
High sulfur Ni strike 359 cycle 7,250 gal.
T20
Tri Ni Nickel
T21
Brite Ni
8,700 gal 4 bays pH 4.0
2,100 gal, Ni bathdeposits particles
(non-conductive) with Ni 3-4 sec. 64,000
pores/in2
T22
Dura Ni (Strike)
dwell 3 sec.
Rinse Spray
T23
Not functional will be used to replace dragout
evap.
T24
5-10 gpm 1,300 gal each
Counterflow Rinses
a b c
T25
1,832 gal chromic - 202 gal. sulfuric - minimal
.01oz./gal
Pre-dip
T26
2,620 gal 35-40 oz/gal hex Cr sulfuric acid
Deco Cr
T27
a b c
Counterflow Rinses
5.4 gpm
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Cleaning pickling processes cause contamination
Not enough capacity
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Identifying Loss Reduction Opportunities

• Discuss/challenge sub-causes
• Multi-vote to prioritize problems
• Generate Loss Reduction Opportunities
• Brainstorm ideas
• Select implement best solution(s)
• Monitor results
• If problem persists, implement alternative
  solutions

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Loss Reduction TechniquesPersonnel Oriented
Problems

• Improve employee training
• Improve employee participation
• Develop quality circles
• Improve safety conditions
• Improve employee supervision

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Loss Reduction Techniques(Machine Oriented
Problems)

• Modify existing equipment
• Adopt new processes and technology
• Redesign/reformulate products
• Implement preventative/predictive maintenance
• Recycling of by-products and wastes

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Loss Reduction Techniques(Method Oriented
Problems)

• Improve operating practices
• Improve inventory control
• Improve housekeeping
• Process optimization
• Standardize procedures
• Waste segregation
• Process water reduction

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Loss Reduction Techniques(Material Oriented
Problems)

• Raw material modification/substitution
• Improved inventory control
• Implement Statistical Process Control (SPC)
  methods
• Process optimization

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Loss Reduction Techniques(Management Oriented
Problems)

• Better planning and scheduling
• Improved cost allocation and accounting
• Implement continuous improvement strategies
• Improve communications to employees

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Loss Reduction Techniques(Environment Oriented
Problems)

• Relocate operations
• Develop alternative shipping methods
• Energy Efficiency

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Electroplating Cant Keep Up
Not enough capacity
Cant run 2nd line
Process takes too long
Too many steps
WWTP cant handle it
WWTP not big enough
Parts dont get clean (Buffing compound residue
on parts)
Too much waste to treat
Cleaning process inefficient
Too much metals drag out
Cleaning acid tanks dumped too often
Cleaning process inadequate
Buffing compound hard to remove
Tanks become contaminated
Dwell times over plating tanks are too short
Cleaning pickling processes cause contamination
Not enough capacity
Brainstorm Ideas for Loss Reduction
Personnel Machine Method Material Management
Environment
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Cleaning pickling processes cause contamination
20 of the solutions solve 80 of the problems
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Materials Loss Assessments

• From Websters Dictionary
• Map - to explore or make a survey of
• Assess - to evaluate or appraise
• Audit - an examination of records or accounts
  to check their accuracy

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Materials Loss Assessments

• Aspects of Assessments (Audits)
• Materials Balance-what comes out should equal
  what goes in
• Improved Process Knowledge-better general
  understanding of how the system works

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Materials Loss Assessments

• Goals and Products of the Assessment
• Accurate Process Map
• Accurate Facility Layout
• Compilation of Inputs and Outputs
• Ideas on How to Improve the Process

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Materials Loss Assessments

• Opening Meeting-discuss what you will do
• Walkthrough/Process Examination-do it
• Closing Meeting-discuss what you did and future
  actions

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Materials Loss Assessments

• Aspects of the Opening Meeting
• The right people management, labor, line
  personnel, EHS
• An initial process map
• An initial plant layout
• Pertinent data and records
• Organization of the visits activities

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Materials Loss Assessments

• The right people
• Management-authority to act
• Labor
• Shop Supervisor or Area Manager
• EHS-to ensure regulatory compliance

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Materials Loss Assessments

• Process Map
• Plant Layout
• These are not the same thing!! For example

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Materials Loss Assessments

• Pertinent Data and Records
• Standard Operating Procedures
• Production Specifications
• Production Logs
• Vendor Information
• Purchasing Records
• Inventories
• MSDSs
• Manifests, air data, sewer data, TRI data, etc.

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Materials Loss Assessments

• Organization
• Safety requirements-PPE
• Single or multiple groups
• Who goes where?
• Who does what?
• When and where does the group reassemble?

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Materials Loss Assessments

• Walkthrough/Process Examination
• Managing Inventory
• Production Processes
• Operating Practices
• Material Substitution
• Equipment Modification or Substitution
• By-product Concentration, Reuse, and Recycling

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Materials Loss Assessments

• Managing Inventory
• First in First Out to reduce out of date
• Process and inventory by-products the same as raw
  materials
• Control access to raw materials-pharmacy concept
• Purchase in appropriate quantities and containers
• Continuously evaluate less hazardous substitutes
• Implement Just-in-time delivery

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Materials Loss Assessments

• Production Processes and Operating Practices
• Spill/leak prevention
• By-product segregation
• Improved raw material handling
• Preventive and predictive maintenance
• Employee training
• Effective supervision
• Employee participation programs
• Production planning and scheduling
• Cost allocation and accounting

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Materials Loss Assessments

• Material Substitution
• Use more efficient raw materials
• e.g. switch to aqueous cleaner
• use dry machining to eliminate waste coolant
• More transfer efficient coatings
• (e.g. powder coat)

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Materials Loss Assessments

• Equipment Modification/Substitution
• Modification
• e.g. New parts racking
• Improved seals-teflon for neoprene
• Better controls-Automated or PLC
• Substitution (new equipment)
• e.g. Energy efficient dryer
• FRP tanks for steel
• Phase out obsolete equipment

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Materials Loss Assessments

• By-product Concentration/Reuse/Recycling
• Concentration-Membrane Filtration to Concentrate
  Wastes in Aqueous Cleaners
• Reuse- potato starch from rinse water, peels for
  animal feed
• Recycling-cleaning agent recovery from aqueous
  cleaning baths

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Materials Loss Assessments

• Closing Meeting
• Break to get organized
• Discuss what happened
• Correct inaccuracies in maps and data
• Generate loss prevention options
• Brainstorm ideas
• Team discussion
• Determine next actions and assign tasks

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Keys to a Successful Assessment

• Asking Questions
• Do you have to dump that coolant every two
  weeks?-closed
• How do you decide when to dump the coolant?-open
• Is there any way to reuse this material?-closed
• Why does this material become a waste?-open
• Have you tried any substitutes?-closed
• What substitutes have you tried? How did they
  work?-open

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Keys to a Successful Assessment

• Exploring a Process/System
• Ask many questions, even if they seem stupid
• Use other industries as examples
• Generate many ideas
• Do not overlook the obvious
• Look in avoided places
• Look at the big picture
• Examine a variety of information
• Never explore alone

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Loss Reduction Opportunities

• Previous modules
• Gathered information,
• Mapped process,
• Found the root cause of the problem,
• Assessed the process, and
• Brainstormed some solutions
• Present the solutions as a project.

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Material Loss Presentation

• You could report on the projects -
• Expected cost savings
• Expected capital expenses
• Expected labor costs, and
• Expected project results
• Some projects may be sold before you leave, and
• Others will have to be compared financially with
  completing company projects.

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Corporate Priorities for Fund Allocation

• 1 Cost Avoidance projects
• Reduced head count
• Reduced water usage
• 2 - Profit-sustaining projects
• Equipment maintenance

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Case-in-Point

• MARWI USA - Bicycle parts manufacturer
• Problem - Eliminate WWTP operations
• WMRC Presentation -
• Use Membrane filtration to replace WWTP
• Save on WWTP operations chemicals
• Save on parts washer chemicals
• Plant Manager had one question?
• How will this change increase my production?
• Not interested!

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Right Ladder, Wrong Wall

• Project focus was wrong
• Root Cause of problem - Increase production
• Should have looked at Production Changes
• Lost time Labor Dump/Recharge Tank
• 8hrs X 26 dumps per year 208 hours
  downtime/year
• Production Loss of 250 units per hour
• Proposed change Increase of 52,000 units/year

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Competing with Other Projects

• Cost savings alone wont compete successfully.
• Characteristics of a project that influence
  project acceptance include
• Relative advantage of the project work
• Over idea superseded.
• Compatibility
• With existing company needs, values, and
  experiences.
• Complexity
• Perception of the difficulty to understand and
  use.

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Competing with Other Projects

• Trialability
• Degree to which an implemented change can be
  experimented with.
• Observability
• How visible are the projects results.

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Building a Better Projecttrap?

• Use Membrane filtration to replace WWTP
• Save on WWTP operations chemicals
• Save on parts washer chemicals

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Building a Better Projecttrap?

• Membrane Filtration would -
• Increase production by 5
• A relative advantage over the WWTP
• Increase production floor space by 11
• Compatible with the companys needs
• Extend process cleaning bath life
• Complexibility of operation is minimal

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Building a Better Projecttrap?

• Offered a pilot test to demonstrate unit
• Ease of operation compared to WWTP
• Employed plant personnel to run unit
• Hands on experience for familiarity
• Change Agent gains
• More trust,
• More credibility, and
• More success.

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Total Cost Accounting

• Total Cost Accounting (TCA) is a generic term for
  the long-term, comprehensive analysis of the
  internal costs and savings of loss prevention,
  energy efficiency, and other production projects.

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Total Cost Accounting

• TCA in less than 8 hours - Not possible!
• Applying the fundamentals of TCA are possible
• See the whole picture
• Using all costs and expenses involved

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Total Cost Accounting

• Direct Costs
• Directly linked with project or process
• Capital Expenses
• Equipment and Installation,
• Project Engineering,
• Utility Connections, and
• Buildings.
• Operating and Maintenance
• Raw Materials,
• Labor, and
• Utilities.

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Total Cost Accounting

• Hidden (Indirect) Costs
• Costs lumped into general admin. accounts
• Value of lost production,
• Value of rejected parts,
• Lost machine time,
• Insurance, and
• Regulatory permits, costs, and monitoring.

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Total Cost Accounting

• Contingent Liability Costs
• Categories
• Accidental Releases
• Superfund sites and other clean-ups
• Legal damages and settlements
• Fines and penalties
• Attorney fees
• Difficult (if not impossible) to quantify
• Event uncertainty, and
• Costs frequency difficult to estimate

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Total Cost Accounting

• Intangible Cost
• Even harder to quantify
• Increased sales due to product improvement,
• Improved Corporate Image,
• Customer Acceptance, and
• Community Goodwill.
• ISO 9000 and ISO14001 Certification
• Improved Corporate Image!

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Total Cost Accounting

• 4 projects at Bumpers-R-Us
• Evaluate spray cleaning to remove buffing
  compound.
• Evaluate alternative buffing compounds
• Evaluate membrane filtration for in-process
  recycling
• Evaluate diffusion dialysis for acid recycling

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Total Cost Accounting

• Estimating Costs and Benefits hierarchically
• If Direct costs are sufficient to warrant a
  project
• No estimate required for other categories
• If Direct Costs are not sufficient, then estimate
  -
• Hidden costs, then
• Contingent Liability Costs, and finally
• Intangible Costs

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Loss Reduction Opportunities

• Problem Cleaning Process Inadequate
• Project Opportunity Evaluate spray cleaning
  step to remove buffing compound - 1.5 k
• Resources WMRC parts cleaning lab
• Solution Install spray washing nozzle on
  stamping line

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Install Spray Washing Nozzle on Stamping Line
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Install Spray Washing Nozzle on Stamping Line
Less the cost of 2nd cleaning process
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Install Spray Washing Nozzle on Stamping Line -
Payback

• TCA Costs
• Process Cost 906,150
• Investment 14,700
• Savings 872,000
• Payback 6 days

• Direct Costs
• Process Cost 136,150
• Investment 14,700
• Savings 122,650
• Payback 1.5 months

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Loss Reduction Opportunities

• Problem Buffing compound hard to remove
• Project Opportunity Evaluate alternative buffing
  compounds - 2k
• Resources Buffing compound vendors WMRC parts
  cleaning lab
• Solution Switch to alternative buffing compound

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Switch to Alternative Buffing Compound
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Switch to Alternative Buffing Compound - Payback

• TCA Costs
• Investment 0.00
• Savings 1,038,140.00
• Payback Immediately

• Direct Costs
• Investment 0.00
• Savings 134,070.00
• Payback Immediately

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Loss Reduction Opportunities

• Problem Cleaning tanks become contaminated
• Project Opportunity Evaluate membrane filtration
  technology for in-process recycling - 6k
• Resources WMRC pilot microfiltration system
• Solution Implement in-process recycling system

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Implement In-process Recycling System
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Implement In-process Recycling System
First year costs
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Implement In-process Recycling System - Payback

• Direct Costs
• Process Cost 61,400.00
• Investment 63,000.00
• Savings 42,980.00
• Payback 1.5 years

• TCA Costs
• Process Cost 831,400.00
• Investment 63,000.00
• Savings 812,980.00
• Payback 28 days

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Loss Reduction Opportunities

• Problem Acid tanks become contaminated
• Project Opportunity Evaluate diffusion dialysis
  technology for recycling acid - 4.7k
• Resources WMRC pilot diffusion dialysis system
• Solution Implement acid recycling system

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Implement Acid Recycling System - Payback

• Direct Costs
• Process Cost 258,829.00
• Investment 74,700.00
• Savings 181,500.00
• Payback 2 years

• TCA Costs
• Process Cost 1,028,829.00
• Investment 74,700.00
• Savings 1,028,829.00
• Payback 9 months

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TCA Advantages

• Most supportable cost estimates
• Direct or Operational Costs, and
• Hidden or Indirect Costs.
• Minimizes time spent on uncertain estimates
• Contingent Liability Costs, and
• Intangible Costs.

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Process Improvement from a Materials Perspective

• Understanding the process
• Process mapping
• Root cause analysis
• Assessing the process
• Team approach
• TCA Concepts
• Hidden or indirect costs

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Process Improvement from a Materials Perspective

• Success!!

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Process Improvement from a Materials Perspective

• Questions and Answers
• Proposed or Actual Projects

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Process Improvement from a Materials Perspective

• Thank You and have a safe trip home.
• The WMRC Staff