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Vehicle Group North AmericaContinuous Improvement Award Competition

Kings Mountain PlantHD Transmission Assembly – Takt Attack

November 4th, 2015

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“Takt Attack” Team

Jesse HuntLead Operator

Larry LovelaceSt. 120 Operator

Don HopperSt. 130 Operator

Rodney FallsSt. 190 Operator

Richard TuftSt. 110 Operator

Jason JacksonAssembly Supvr

Zach RahaimAssembly PLM

Emily LeadonLean Coordinator

Matt EtterMfg Eng Supvr

JR GreeneLead Operator

Back Row:

Front Row:

Not Pictured: Joseph Caldwell (Assembly BTL); Brandon Goodwin (Assembly Supvr); Wrenn Anderson (Lead Operator); Tamesha Surratt (St. 190 Operator); Jimmy Graham (St. 70 Operator); Vicky Wachendorf (Sr. Qual Engr); Tre McCorkle (St. 70 Operator)

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Process Information

KM Heavy Duty Transmission Assembly Line• Very High Model Mix (~1300 unique SKUs)• Over 4,000 cycle “pitches” per day (from one station to next)• 27 Stations and 19 Subassembly Stations• 82 Direct Labor Employees / 30 Indirect Labor Employees

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Strategic Linkage

VSM

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Strategic Linkage

• Visual Controls• Daily Accountability• Problem Solving• C.I. for Everyone

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• Daily Accountability / Visual Controls• Electronic Hour by Hour boards• Electronic Andon-Pull system to alert support• Tiered Meetings

• Improvement Efforts• 6 RIEs conducted from mid-2014 through 2015• Focus primarily on process constraints

• Employee Engagement / Feedback• No feedback to operators on cycle-by-cycle performance• No measure of an individual’s scope of control• Communications/metrics focused on overall line performance

Prior Condition

• Many tools applied but goals not met• Operators engaged only in pockets

Live HBH Display

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BeforePerformance Metrics

Unable to Meet Goals

Managing by “looking in

rearview mirror” at lagging metrics

Goal = 63%

Goal = 95%

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ApproachManagement System

• Engage operators – focus on what they can control• Select high-leverage lead measure for the process

• Apply team A3 problem-solving to make improvements• Eliminate waste through use of ELSS tools

Operators can impact this ~4,000 times a day!

Cycle-by-Cycle Takt Attainment!

Deployed Management System Upgrade in July 2015

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Improvements MadeManagement System

• Daily Accountability / Visual Controls• 4,000 Opportunities = “At-Bats”• New Metrics: Daily and Weekly Takt Attainment

• Individual “Batting Average”• Overall Line “Batting Average”

• Scoreboard at Tier 1

At-Bat: When a transmission arrives in a stationBatting Average: % of day’s at-bats where work was completed within takt, by station. Operator

Scoreboard

CIF Tools

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Improvements MadeFocusing our Problem-Solving

• Focus of Improvement Efforts• Focus on Lead measures• Systematic A3 approach to improve the worst batting

averages, 3 stations each month• Flow Line Team holds a “Weekly Commitment Meeting”

• Review past commitments and make new commitments• Weekly actions/commitments made by operators/FLT

A3 PS Flow Chart

Lag

Lead

ELSS Tools

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ApproachA3 Problem-Solving Examples

St. 110

St. 190 St. 120

• Teams consisted of FLT members and operators from both shifts

• Tally Sheets at focus stations• Removed small interruptions• Tackled process improvements

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Operator Engagement in A3 Problem Solving“[The focus on takt attainment] brought to light an issue with the shims that had been going on, but not yet addressed.” – Don Hopper, Station 130

Root Cause Identified

Issue Root Cause CountermeasureShim rejections Shims out of spec Supplier resolving (in process)

Bearings not seated Incorrect calibration of press

Replaced and calibrated load cell

Counter Measure

Resolution

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Issue Root Cause CountermeasureExcess time getting parts Poor access to bearings Adjusted shelf height

Time wasted decanting material

Material not decanted for operator

Decanted material made standard

Operator Engagement in A3 Problem Solving“Team worked good together to get problems resolved quickly.” – Jimmy Graham, Station 70

Employee Engagement

Operator Generated Standards

Height Adjusted

Standardizedcontainer

presentation

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Issue Root Cause CountermeasureLong walk time to tools Tools located far away Move tools to Point of Use

Fixtures failing and falling off during use

Poor fixture design Redesigned fixtures and made more durable

Operator Engagement in A3 Problem Solving“I was motivated to get better based on looking at my daily performance. Having Flow Line Team on floor, trying to make my job better was good teamwork.” - Rodney Falls, Station 190

Cross Functional

Team Involvement

Impact tools & sockets enhanced,

moved location

Batting AverageJune = 68%

October = 94%

Bottleneck Station

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Increased Individual Accountability/Engagement

Daily Accountability

Takt attainment incorporated into start up meeting standard work at Tier 1 board.

“Created awareness of opportunities for operators. Also showed them how they are doing, how the shift is doing, and how everyone is committed to each other and our customers.” - Jesse Hunt, Lead Operator

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Results18-Month Performance

45%

50%

55%

60%

65%

70%

LAG – Gross Utilization

75%

80%

85%

90%

95%

100%

LAG – OEM OTD

80%

85%

90%

95%

LEAD – Takt Attainment % (Batting Avg)

Unprecedented Sustained

Performance

Engagement in Problem Solving

Focus on High Leverage Leading

Measure

Record Attainment

Record High

Record 100% OTD

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ResultsCost Savings

• 4-Month Cost-Out = $576K• Annualized Cost-Out = $1.7M

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Benchmarking

• Benchmarked BMW, Spartanburg, SC Plant• Highly-Automated Assembly Line• Automotive Production• Cycle time feedback during shift• Live TAKT time monitoring and display• Multiple levels of escalation through Andon

• Benchmarked Freightliner, Cleveland, NC Plant• Live TAKT time monitoring and display• Visual Controls for Takt on floor, per pace of line• Andon / Line Stop prompts issue resolution

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Learnings and Sharing

• Learnings• Previous lag measures were not actionable• Find your high-leverage lead measures• Empower people to improve what they can control

• Sharing• Monthly report outs during KM CI Council• Presented to VGNA leadership during Fly Around• Posted A3s to ELSS ERG• Will present during the next Assembly Council

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SustainingLeader Standard Work

Lead Op

Daily Proces

s

Weekly Review

Coach

Daily Proces

s

Weekly Commit

ment Meeting

Monthly

Review

BTL

Weekly Commit

ment Meeting

Weekly Review

Monthly

Review

PLM

Weekly Commit

ment Meeting

Weekly Staff WIG Walk

Quarterly Off-Site Strategy Review

FLT

Weekly Commitment Meetin

g

Monthly Focus Station Identific

ation

Staff

Weekly Gemba Walks of process

and focus areas

Quarterly Off-Site

Strategy Review

CIF Tools

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ResultsSummary

• Results sustained for 4 months since deployment of Takt Attainment Process

Metric Jan-Jun 2015

Jul-Oct 2015

Takt Attainment(Batting Average) 84% 91%

GU 59% 63%

OTD 95% 98%

Cost Savings To Date $576K

$1.7M Annualized

Questions?