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energy efficiency and reliability
Applying knowledge management tools/ concepts to solve a company problem in Schaffner.
AB Goh
9 January 2011.
energy efficiency and reliability
Presentation title DD.MM.YYYY 2
Fig. 1.0 - Choke ComponentsPlastic Housing
Steel Wire
Separator
Toroid
Copper Wire
Resin
energy efficiency and reliability
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Applying knowledge management tools to solve a company problem in Schaffner.
1. Figure 1.0 shows the Choke products which are the traditional strong hold products of Schaffner.
2. At the peak, a few years ago Schaffner produces between 1 million to 1.5 millions a year.
3. The Choke products is also one of Schaffners’ revenue generators.
4. In the year 2008 Schaffner sold slightly above half a million pieces and 2009 , Schaffner sold much less than half a million pieces.
energy efficiency and reliability
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Applying knowledge management tools to solve a company problem in Schaffner.
1. The main problem is ;
1. Schaffner is losing market share and is being threatened that the entire Choke business will be wiped out within two to three years.
energy efficiency and reliability
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Problem; Schaffner is losing market share and is being threatened that the entire Choke business will be wiped out within two to three years.
Losing market share on Choke products
Not designing to customers’ requirements
No priority for salesmen to sell
Schaffners’ Chokes have lesser performance features than competitors
Unhappy customers
Fig. 2.0
Schaffner’s prices are above the competitors
Customers shifting to new technology platform
3%
>3%
>40%
>44%
>5%
>5%
energy efficiency and reliability
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Problem; Schaffner is losing market share and is being threatened that the entire Choke business will be wiped out within two to three years
Schaffner’s prices are above the competitors
Man
MaterialsMachine
MethodsToo much walking around
Cost reduction by 25%
High content of manual operations
Throughput time too long
Cycle time too long as compared to standard
Related machines are in different floors/ locations causing too much transportation
Work sequences not optimised.
Still buy materials from Europe ( costly)
use over specified materials resulting buying expensive materials
No cost reduction targets with suppliers
Workers are not ergonomically positioned
Machines are not fully automated
Fig. 2.1
2
1
3
1
4
11
5
6
9
8
7
11
10
40%
energy efficiency and reliability
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Problem; Schaffner is losing market share and is being threatened that the entire Choke business will be wiped out within two to three years
Unhappy customers
Quality issues
Potting materials not fully hardened
Poor solder joints
Poor on- time deliveries
Too long to pick materials at warehouseto fill a work order
Long set – up times required beforeProduction can start
Fig. 2.2
Suppliers not delivering materials on-time Inflexibility of production lines 6
5
4
3
1
7
2 scratches
44%
energy efficiency and reliability
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Reorganise the work flow from traditional production conveyor lines to lean cell concepts.
1. By applying Lean cell concepts , the following causes/ actions will be taken care of;
1. Fig.2.11. Cause #12. Cause #33. Cause #74. Cause #85. Cause #96. Cause #10.
2. Fig.2.21. Cause #4.2. Cause #53. Cause #6.
energy efficiency and reliability
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Application of LEAN CELL CONCEPTS
First , the entire process is mapped out as shown in fig.2.3. All the processes are studied by removing the 7 wastes in
manufacturing. Figures 3.0 A to 3.0D show the application of lean cell concepts. Fig. E is the final lean cell layout. The lean cell concepts will reorganise all the process stations
close together with the objective of a smooth and ergonomic flow.
One piece flow is applied. Materials are at the point of use. It is a two bin system .
energy efficiency and reliability
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Fig. 2.3 Choke Process Flow
WindingPin Insertion
Assembly
Soldering
Moulding
Baking
Hi-Volt test
Test
Cutting & Wave Dipping
Printing
Packing
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7 Wastes In Manufacturing
Rejects andRejects andDefectsDefects
Seven Seven WastesWastes
OverOverProcessingProcessing
InefficientInefficientTransportationTransportation
UnnecessaryUnnecessarymotionmotion
UnnecessaryUnnecessaryStockStock
WaitingWaitingTimesTimes
OverOverProductionProduction
Fig.3.0 A
energy efficiency and reliability
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REWORK
UNSTABLEDEMAND
MACHINEBREAKDOWNS MIXED MATERIALS
POOR HOUSEKEEPING
HIGH MANPOWERREQUIREMENTS
GENERATINGDEFECTIVEPRODUCTS
High inventory hides the problem
LONG SET UPS
DELAY IN DELIVERIES
100 meters
High water level conceals the rocks
Fig.3.0B
energy efficiency and reliability
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REWORK
UNSTABLEDEMAND
MACHINEBREAKDOWNS MIXED MATERIALS
POOR HOUSEKEEPING
HIGH MANPOWERREQUIREMENTS
GENERATINGDEFECTIVEPRODUCTS
LONG SET UPS
DELAY IN DELIVERIES
Low inventory exposes the problem
50 meters
Low water level reveals the rocks
Fig.3.0C
energy efficiency and reliability
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One Piece Flow Production in a Cellular Layout:Significantly reduces transportation, inventory, and waiting time while improving quality, delivery, and costs.
Smooth cellular flow by connecting the relevant processes together:
Value Adding Processes
Operation 1
Customer Raw Material
Operation 2
Operation 3
Operation 4
Operation 5
Fig.3.0D
energy efficiency and reliability
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Fig. E Choke Lean Cell
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Problem; Schaffner is losing market share and is being threatened that the entire Choke business will be wiped out within two to three years
By automating the process operations the following causes / actions will be solved.
1. Fig 2.21. Cause # 22. Cause #11
2. Fig. 2.2 1. Cause # 2.
Use Nonaka model for automating the following process operations;1. Winding process.2. Cutting and wave dipping process.3. Pin- insertion process.4. Assembly process.5. Moulding process.
This will cut cycle time by at least 35% but most important is the quality improvements ( yield and less scrap).
energy efficiency and reliability
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Fig. D-1 Choke Process Flow
Process Time(sec)
Picture
Automate the winding process
68.45
Automate Cutting & Wave Dipping
38.34
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Fig. D-3 Choke Process Flow
Process Time(sec) Picture
Automate Pin Insertion process
1.9
Automate Assembly process
36.84
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Process Time(sec)
Picture
Soldering 11.67
Automate Moulding
process
2.81
Fig. D-2 Choke Process Flow
energy efficiency and reliability
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Dialogue
Learning byDoing
LinkingExplicitKnowledge
FieldBuilding
Socialization Externalization
Internalization Combination
Tacit TacitTa
cit
Taci
t
Explicit Explicit
ExplicitExplicit
Fig. 1.0 – four modes of knowledge conversion
energy efficiency and reliability
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3 2 1 0
tacit
explicit
tacit
combinationinternalization
externalizationsocialization
explicitto
from
Figure 2.0 – 3 years of spiraling knowledge
Yr 1, tacit to tacit = socialization
Target is to automate winding fully
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Knowledge management – Nonaka model
Yr 1 = tacit to tacit SOCIALIZATION( Fig. 2.0) Grand theme; maximachine/minihuman
Automate winding
Socialization; How- To Get the experts and most experienced winders for a brain
storming session. Informal gatherings. Off- site meetings for 3 days. Building samples, experimenting and sharing etc. First 4 months – no formal reviews , just discussion.
energy efficiency and reliability
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Knowledge management – Nonaka model
3 2 1 0
tacit
explicit
tacit
combinationinternalization
externalizationsocialization
explicitto
from
Figure 3.0 – 3 years of spiraling knowledge
Yr 2- tacit to explicit – Externalization-automate cutting and dipping
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Knowledge management – Nonaka model
Yr 2 = tacit to explicit EXTERNALISATION (Fig. 3.0)
Grand theme; maximachine/minihuman Automate cutting and wave dipping How – To
Document useful discussion, observations and experiments.
Mid – theme ; The cookie concept Aims to produce chokes like cookies. Understand how cookies are fully automated and produced. Consistency of the cookies produced. Low cost production. Easy packing
energy efficiency and reliability
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Knowledge management – Nonaka model
3 2 1 0
tacit
explicit
tacit
combinationinternalization
externalizationsocialization
explicitto
from
Figure 4.0 – 3 years of spiraling knowledge
Yr 3- explicit to explicit
- Combination
-Automate the assembly
energy efficiency and reliability
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Knowledge management – Nonaka model
Yr 3- explicit to explicit
COMBINATION (Fig. 4.0) Automate the assembly
Grand theme; maximachine/ minihuman
Final theme; Everyone loves cookie. How- To. Exchange ideas and experiences. Combine , sort and prioritize concepts of value. Formal and informal communications. Exchange visits with European colleagues.
energy efficiency and reliability
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Knowledge management – Nonaka model
3 2 1 0
tacit
explicit
tacit
combinationinternalization
externalizationsocialization
explicitto
from
Figure 5.0 – 3 years of spiraling knowledge
>Yr 4 explicit to tacit- Internalization-
- Continue automation of other operations
46
energy efficiency and reliability
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Knowledge management – Nonaka model
Beyond 3 Yrs- explicit to tacit Continue automations of other operations
INTERNALIZATION (FIG. 5.0)
Grand theme; maximachine/ minihumanHow- To; Verbalize ,constant interactions and informal groups
gatherings. Continue to document success stories and new learnings. Alignment use ROFO MODEL Encourage learning by doing Mindset change and modification of behavior towards
learning.
energy efficiency and reliability
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Fig. 2.2 Quality issues – solve by implementing Total Quality management TQM
Fig. 2.2 Qualty issues
1. Cause # 12. Cause # 2.
This is solved by implementing SPC and multivari – charts as shown in Figures 6.0 A and 6.0 B.1. A X- bar , R chart is used to track the dimensions of the
housing .2. A multi vari chart is used to track the solder defects and the
scratches. 3. Cpk – process capability index of 2.0 is set as target. Fig. 6.0
C A TQM approach is also applied throughout the company by
incorporating training and development plan
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Fig. 6.0 A -1 X- bar chart
Upper control limit
Lower control limit
henr
y
1
3
2
4
1 2 43Time hrs
energy efficiency and reliability
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Fig. 6.0 A – 2 R- chart
Upper control limit
Lower control limit
henr
y
1
3
2
4
1 2 43Time hrs
energy efficiency and reliability
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RENAULT – SCHAFFNER’S MODEL OF RENAULT QUALITY SYSTEMS
The Multi- Vari chart fig. 6.0B
defe
cts
Time ( hrs or shifts)
I II III IV
12
4
5
3
energy efficiency and reliability
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Process Capability StudyLower
Specification Limit, LSL
Upper Specification Limit, USL )
3'
3min(
LSLxxUSLC pk
61
3131
Cpk = 1Three Sigma (3) process
2700 ppm
3232
62
Cpk = 2Six Sigma (6) process3 ppm
We need suppliers to have the same mindset and practice of
Consistency
Specification mean
Fig . 6.0C
energy efficiency and reliability
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SUPPLIER MANAGEMENT PLAN( SMP)
SMP By localisation of European parts. Manage suppliers by developing merit points ;
Quality------------ 50 points. Cost……………..20 points. Delivery…………30 points.
On- time delivery targets are jointly set with suppliers. Develop local suppliers that have materials that are less
expensive than European materials. This can be achieved by changing the specification of materials with R&D.
The above actions will reduce materials costs by 18%.
energy efficiency and reliability
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The final picture.
Figures 7.0 A and 7.0 B show how the target is achieved.
energy efficiency and reliability
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Schaffner’s prices are above the competitors
Man
MaterialsMachine
MethodsToo much walking around
Cost reduction by 25%
High content of manual operations
Throughput time too long
Cycle time too long as compared to standard
Related machines are in different floors/ locations causing too much transportation
Work sequences not optimised.
Still buy materials from Europe ( costly)
use over specified materials resulting buying expensive materials
No cost reduction targets with suppliers
Workers are not ergonomically positioned
Machines are not fully automated
Fig. 7.0 A
2
1
3
1
4
11
5
6
9
8
7
11
10
Solve by automation solve by developing a supplier management plan
Solve by lean cell
40%
energy efficiency and reliability
Presentation title DD.MM.YYYY 37
Problem; Schaffner is losing market share and is being threatened that the entire Choke business will be wiped out within two to three years
Unhappy customers
Quality issues
Potting materials not fully hardened
Poor solder joints
Poor on- time deliveries
Too long to pick materials at warehouseto fill a work order
Long set – up times required beforeProduction can start
Fig. 7.0 B
Suppliers not delivering materials on-time
Inflexibility of production lines6
5
4
3
1
7
2 scratches
Solve by TQM
Solve by supplierManagement plan
Solve by automation
Solve by lean cell 44%
energy efficiency and reliability
Presentation title DD.MM.YYYY 38
Thank you very much for your attention.
Any questions?