Acme Machell

Lean Assessment

March 2011

2Lean – Six Sigma Project

Project DefinitionPROBLEM DESCRIPTION:

Acme Machell is past due on product affecting Nuevo Laredo, Shangai & Matamoros KA plants, Actually KA is expediting material having a Cost of Poor Quality of $____.

OBJECTIVE:

Reduce the Past due parts from 69.694 to 0, by April 2011 & give the Plant an assessment so they may create an Action Plan to improve & sustain their processes.

SCOPE: Acme Machell & its suppliers for KA products

Define/Measure/Analyze/Improve/Control

CORE TEAM:Alberto Martinez – K.A. Logistics Manager – LeaderTom Cox – A.M. PresidentLouis Poggenburg – A.M. Lean 6σ Engineer, QA Manager Glenn Litchford – A.M. VP- OperationsAlex Quezada – K.A. MBB/Lean 6σManager NA – Support

EXTENDED TEAM:Jim Reder – K.A. Purchasing Director NA – ChampionNicklas Berntsson – K.A. Purchase Director

3Lean – Six Sigma Project

Pareto of Part Numbers and Days to recover

Days to recover 2.226 0.1178.052 6.566 6.086 5.663 5.255 4.276 3.707 2.484Percent 5.0 0.318.1 14.8 13.7 12.7 11.8 9.6 8.3 5.6Cum % 99.7 100.018.1 32.9 46.6 59.3 71.2 80.8 89.1 94.7

Part NumberOth

er

'996T

-S10

30'

'092P

-S77

12'

'054J-

S173

2'

'073T

-S78

25'

'062T

-S77

54'

'076P

-S78

12'

'066P

-S28

07'

'006T

-S10

25'

'084P

-S78

11'

50

40

30

20

10

0

100

80

60

40

20

0

Day

s to

rec

over

Perc

ent

Pareto Char t of Par t Number

Define/Measure/Analyze/Improve/Control

4Lean – Six Sigma Project

Current VSM O84P-S7811Customer Demand:

27000 pieces per Month(Takt Time 67.2 seconds)

KONGSBERG

MIXING

Total C/T = 2 secondsDefect = 0%

1

INSPECTION

Total C/T = 12.2 secondsValue Add: 0 secondsNVA = 12.2 secondsDefect = 12%Distance Traveled: 12 ft.

1

Production Planning

Preferred Compund

Information

Information

Information

1008000 seconds

2 seconds

24864 seconds

11 seconds

16.6 seconds 65453 seconds 12.2 seconds Lead Time = 1098348 seconds

VA / T = 13 seconds

RM = 13.3 days

WIP = 24883 seconds

FG = 65465 seconds

15000 pcs

Information

MOLDING

Total C/T = 16.6 secondsValue Add: 11 secondsNVA = 5.6 secondsDefect = 4%C/O = 180 mins.Uptime = 75%Availability: 70%

1370 pcs

974 pcs

Define/Measure/Analyze/Improve/Control

Current State (data from 03-09-11)

Work Balancing

2 s. 24.7 s. 13.9 s.

MIXING

MOLDING

INSPECTION

Takt Time 67.2 s.

5Lean – Six Sigma Project

VSM O84P-S7811Define/Measure/Analyze/Improve/Control

Customer Demand:27000 pieces per Month

(Takt Time 67.2 seconds)

KONGSBERG

MIXING

Total C/T = 2 secondsDefect = 0%

1

INSPECTION

Total C/T = 12.2 secondsValue Add: 0 secondsNVA = 12.2 secondsDefect = 12%Distance Traveled: 12 ft.

1

Production Planning

Preferred Compund

Information

Information

Information

1008000 seconds

2 seconds

24864 seconds

11 seconds

16.6 seconds 65453 seconds 12.2 seconds Lead Time = 1098348 seconds

VA / T = 13 seconds

RM = 13.3 days

WIP = 24883 seconds

FG = 65465 seconds

15000 pcs

Information

MOLDING

Total C/T = 16.6 secondsValue Add: 11 secondsNVA = 5.6 secondsDefect = 4%C/O = 180 mins.Uptime = 75%Availability: 70%

1370 pcs

974 pcs

AnalyticalBatch Size

TPM

Set-up Reduction

CombineOperations

FIFO

5S

ReplenishmentPull System

VisualManagement

Visualizing the Future State

6Lean – Six Sigma Project

Customer Demand:27000 pieces per Month(Takt Time 72 seconds)

KONGSBERG

MIXING

Total C/T = 2 secondsDefect = 0%

1

Production Planning

Supplier

Information

Information

Information

8.89 days

2 seconds 11 seconds

15.2 seconds 7.11 days

11 seconds

Lead Time = 16 days

VA / T = 24 seconds

RM = 8.89 days

WIP = 576028 seconds

FG = 0 seconds

10000 pcs

Information

Supplier

8000 pcs

MOLDING & INSPECTING

Total C/T = 15.2 secondsValue Add: 11 secondsNVA = 4.2 secondsDefect = 4%C/O = 90 mins.Uptime = 75%

1

ASSEMBLY

Total C/T = 11 secondsDefect = 0%Uptime = 90%Distance Traveled: 12 ft.

1

Information

Information

Proposed State O84P-S7811

Define/Measure/Analyze/Improve/Control

Work Balancing

2 s. 15.8 s. 11 s.

MIXING

MOLDING & IN...

ASSEMBLY

Takt Time 58.9 s.

FIFO

7Lean – Six Sigma Project

Actions & Benefits in Process Improvements

Kaizens To Do:

• Kan ban racks and cards at Assembly to create a signal to produce according to

demand and Re-order material.

• SMED (Change Over reduction) to reduce from 180 mins to 25 mins by having a

heating plate to pre-heat the tool after installation.

• TPM have the operators know basic adjustments and maintenance of the

machine.

• Reduce scrap by using only new material.

• Reduce Scrap by having a Proper machine maintenance, oil is leaking and may

hurt operator.

• Work instruction properly showed at machine

• Combine Inspection with the same press operator, reduce one person

8Lean – Six Sigma Project

VSM 092P-S7712Define/Measure/Analyze/Improve/Control

Current State (data from 03-09-11)Customer Demand:

33000 pieces per Month(Takt Time 55 seconds)

KONGSBERG

MIXING

Total C/T = 2 secondsDefect = 0%

1

INSPECTION

Total C/T = 12.2 secondsValue Add: 0 secondsNVA = 12.2 secondsDefect = 12%Distance Traveled: 12 ft.

1

Production Planning

Preferred Compund

Information

Information

Information

824727 seconds

2 seconds

20343 seconds

11 seconds

15.2 seconds 53552 seconds 12.2 seconds Lead Time = 898652 seconds

VA / T = 13 seconds

RM = 10.9 days

WIP = 20360 seconds

FG = 53565 seconds

15000 pcs

Information

MOLDING

Total C/T = 15.2 secondsValue Add: 11 secondsNVA = 4.2 secondsDefect = 4%C/O = 180 mins.Uptime = 75%Availability: 70%

1370 pcs

974 pcs

Work Balancing

2 s. 22.6 s. 13.9 s.

MIX

ING

MO

LDIN

G

INSPEC

TIO

N

Takt Time 55 s.

9Lean – Six Sigma Project

Customer Demand:33000 pieces per Month(Takt Time 55 seconds)

KONGSBERG

MIXING

Total C/T = 2 secondsDefect = 0%

1

INSPECTION

Total C/T = 12.2 secondsValue Add: 0 secondsNVA = 12.2 secondsDefect = 12%Distance Traveled: 12 ft.

1

Production Planning

Preferred Compund

Information

Information

Information

824727 seconds

2 seconds

20343 seconds

11 seconds

15.2 seconds 53552 seconds 12.2 seconds Lead Time = 898652 seconds

VA / T = 13 seconds

RM = 10.9 days

WIP = 20360 seconds

FG = 53565 seconds

15000 pcs

Information

MOLDING

Total C/T = 15.2 secondsValue Add: 11 secondsNVA = 4.2 secondsDefect = 4%C/O = 180 mins.Uptime = 75%Availability: 70%

1370 pcs

974 pcs

AnalyticalBatch Size

TPM

Set-up Reduction

FIFO5S

ReplenishmentPull System

VisualManagement

VSM 092P-S7712Visualizing the Future State

Define/Measure/Analyze/Improve/Control

Work Balancing

2 s. 22.6 s. 13.9 s.

MIX

ING

MO

LDIN

G

INSPEC

TIO

N

Takt Time 55 s.

CombineOperations

10Lean – Six Sigma Project

Customer Demand:33000 pieces per Month(Takt Time 55 seconds)

KONGSBERG

MIXING

Total C/T = 2 secondsDefect = 0%

1

Production Planning

Preferred Compund

Information

Information

Information

274909 seconds

2 seconds 5 seconds

15.2 seconds Lead Time = 274926 seconds

VA / T = 7 seconds

RM = 3.64 days

WIP = 17.2 seconds

FG = 0 seconds

5000 pcsMOLDING & INSPECTING

Total C/T = 15.2 secondsValue Add: 5 secondsNVA = 0 secondsDefect = 1%C/O = 60 mins.Uptime = 90%Availability: 90%

1

Proposed State 092P-S7712

Define/Measure/Analyze/Improve/Control

FIFO

Work Balancing

2 s. 17.1 s.

MIXING

MOLDING & IN

...

Takt Time 55 s.

11Lean – Six Sigma Project

Actions & Benefits in Process Improvements

Kaizens To Do:

• SMED (Change Over reduction) to reduce from 240 mins to 45 mins by having a

heating plate to pre-heat the tool after installation.

• TPM have the operators know basic adjustments and maintenance of the

machine

• Reduce scrap by using only new material and add FIFO.

• Reduce Scrap by having a Proper machine maintenance.

• Work instruction properly showed at machine

• Set up parameters optimized

• Combine Inspection with the same press operator, reduce one person

12Lean – Six Sigma Project

0

1

2

3

4

5

Level ScheduleContinuous Flow

Takt Time

Pull System

Abnormality Detection

Line Stop Call (Andon)

Problem Solving

Man/Machine Separation

Cell/Line LayoutPlant Design

Skill BuildingStandard Operations

5S

Visual Management

TPM

Inventory Management

Management Style

Change Readiness

Customer focusContinuous Improvement

9-Mar-11

Goal

Lean Assessment

Score 1.55

13Lean – Six Sigma Project

Lean Assessment CommentsProduction processes are isolated “islands” with considerable amounts of WIP between operations (i.e., departmentalized). Products move through the production line in batches resulting in long throughput times.

Production pace is not planned but assumed to be a fixed function of the current equipment. Line operates and adds/cuts hours or inventory to match customer demand.

Production flow is completely MRP based with no in-line control on operations or production Pace. Material enters & is pushed downstream on forecast only.

Some fail-safes and process monitors are present, but team members are still expected to prevent errors. Only a small group of people notice problems and understand the status of the shop floor.

Team members can notify supervisor/team leader of problems, but cannot consciously stop production. There is not an efficient process in place for team members to signal a problem.

Majority of problems are only noticed by team members and result in quick superficial “fixes” by maintenance technicians. Problems constantly reoccur and result in low process efficiency (productivity or OEE).

Basic work procedures exist, but are not strictly followed and are not easily accessible by team members.

14Lean – Six Sigma Project

Lean Assessment Comments

No workplace organization on the shop floor. All areas are generally disorganized and dirty. It is not clear what is needed and what is not needed.

Virtually no examples of visual management beyond basic forms, e.g., aisles marked.

PM plans in place for some select pieces of equipment, but majority of maintenance activity is for unplanned downtime. Only maintenance technicians work on machines. Little information available on downtime/OEE.

Only isolated areas practice FIFO. Designated areas for inventory may exist, but it is not clear because there are no labels and there is little discipline in place.

Problems are communicated to management, but response is slow and the status always unclear.

There are no improvement activities involving team members and there is no formal improvement organization.

15Lean – Six Sigma Project

0

1

2

3

4

5

SORT

SET

SHINESTANDARDIZE

SUSTAIN

9-Mar-11

Goal

5’s Assessment

Score 1.55

Generally cluttered. Quite a few unnecessary items either on benches, desks, shelves or cabinets. Some unneeded furniture and equipment. Items stored on floor.

Inadequate organization. Many key items have no designated location. Shelves and drawers are poorly labeled. Aisles or equipment markings are not clear or straight. Very few visual controls or instructions are evident. Safety equipment is not designated.

Area needs to be picked up. Items have not been cleaned in some time. Significant oil leakage. Floor is dirty and/or waste containers are full.

There is no evidence that a 5S. Checklist exists for the area. PM log is not up to date. Metrics and charts in the area are not current.

There is no system or commitment within the organization to sustaining 5S.

16Lean – Six Sigma Project

Areas

17Lean – Six Sigma Project

Next Steps:

Acme will develop an Action Plan to get out of backlog and improvements moving forward to maintain Quality & Delivery to KA – Tom Cox - TBD