Continuous Improvement

Continuous Improvement Overview
Quest for Operational Excellence
2006 Goodrich Corporation
CI Overview -- Revision 2
Todays Agenda Logistics & & Course Course Objectives Objectives Logistics What is Continuous Improvement Change Continuous Improvement Enablers Leadership Customer Focus Process Management Strategy Organizational Development Metrics Application of CI Tools Summary
Logistics 9:30 am to 1:30 pm One 10 minute break (before Application of CI Tools) Restrooms Cell phones, pagers, Blackberries off Clarifying questions welcomed Have fun
Course Objectives At the end of todays overview, you should understand What is Continuous Improvement Why we need to continuously improve Basic CI tools & processes How Lean & Six Sigma work together What it takes to be successful in our efforts to continuously improve
Todays Agenda Logistics & Course Objectives What Whatis isContinuous ContinuousImprovement Improvement Change Continuous Improvement Enablers Leadership Customer Focus Process Management Strategy Organizational Development Metrics Application of CI Tools Summary
What is Continuous Improvement? Continuous Improvement (CI) Continual elimination of waste and variation from all aspects of our business To stay competitive we must be able to provide customers the highest quality and lowest cost product when the customer requires the product or service the drive to achieve the highest levels of customer satisfaction while achieving superior business results or Operational Excellence
This most likely means a change to how we do things today

2006 Goodrich Corporation CI Overview -- Revision 2 6
Adapting to Changing Business Environment
Business environments change Can you name any industries or companies that were slow to change or failed to change when faced with a threat?
Swiss watch industry Mainframe computer manufacturers Big Three U.S. automakers U.S. steel producers
One Perspective on Change
Insanity
Doing the same thing over & over & expecting different results.
- Albert Einstein
Group Discussion
What are significant barriers to change?
How might we overcome these barriers to change?
Managing Through Change is Not Easy Change can bring about significant emotional response
High Acceptance Anger
Emotional Response
Stability
Bargaining
Testing
Denial Immobilization Depression
Low
Awareness
Understanding
Commitment
Habit
Change is Easier if we have a Vision for where we are going, a Plan to get there, and Commitment from Leadership to see it through
What is Continuous Improvement? How is Continuous Improvement done? Using traditional Lean & Six Sigma tools and methodologies to identify and eliminate the waste and variation out of our processes/services
Eliminating waste and variation is key to Continuous Improvement

What is Lean? Based on the principles of the Toyota Production System, Lean, at its core, is about the systematic & continuous identification & elimination of waste Key Principles of Lean
Define value & identify the value stream Eliminate unnecessary steps in the value stream
Normal
VA NVA
Make value flow
vs.
Abnormal
Kaizen
In pursuit of perfection
You cant see all the waste until you strip away waste
As pulled by the customer
Dont Automate Waste
Reference: Executive Summary of Lean Thinking by James P. Womack & Daniel T. Jones 2006 Goodrich Corporation CI Overview -- Revision 2 12
What is Lean? Lean involves multiple systems & methods Effective workplace organization & visual controls Improved machine layouts & multi-skilled workers Setup reduction One piece (or small lot) production Standard work to enable line balancing Kanban systems for Just-In-Time production Small group improvement activities (Lean Events)
13
What is Lean?
Speed is a Focus of Lean All we are doing is looking at the time line from the moment the customer gives us an order to the point when we collect the cash, & we are reducing that time line by removing the non-value-added wastes. - Taiichi Ohno
Order
Cash
Cash
14
What are Lean Events? Major tool for creating lean enterprise is a lean (or kaizen) event Short-term effort with a bias for action modeled after Toyota workshops for suppliers Performed by a multi-functional/multi-level team Focused on a targeted area of the value stream/business Designed to achieve specific objectives linked to corporate specific goals Changes are identified & made during the event Low cost/high yield Managed to ensure closure
Lean Example in the Factory Before - Traditional Batch

Machines Grouped By Function
After - Lean
Isolated Workers Poor Teamwork Large Batches
Cluttered, Unsuitable Work Area
One Piece Flow Reduced Leadtime Cell Team Working

CI Overview -- Revision 2 16
Lean Example in the Office Lean Event Payment Request Process (Accounts Payable) Reduced process steps by 30% Implemented 10+ mistake-proofing ideas Applied visual controls To work area To user instructions for invoice submittals Improved productivity by 19% Drove quality at the source
17
What is Six Sigma (6)? A structured approach for improving performance Emphasizes importance of customer critical processes Drives for perfection in processes by reducing variation & eliminating defects Uses objective, fact-based analysis techniques
A systematic approach
failure!
to reduce variation and
center the process!
LSL
USL
LSL Tolerance
USL
LSL Tolerance
USL
Tolerance
18
What is Six Sigma (6)? Sigma () is a statistical term that measures the variation in a given process & corresponds to parts per million defective (ppm)
2 308,537 ppm
3 66,807 ppm
4 6,210 ppm
5 233 ppm
6 3.4 ppm
19
Why Six Sigma?
99% is not good enough

3.8 Sigma (99% Good)
50 newborn babies dropped at birth by doctors per day Toxic drinking water for 15 minutes per day 5,000 incorrect surgical operations per week 204,000 wrong drug prescriptions per year 2 short or long landings at major U.S. airports per day
6 Sigma (99.99966% Good)

6 newborn babies dropped per year Unsafe water for 1 minute per 7 months 1.7 incorrect surgical operations per week 68 wrong prescriptions per year 2 short or long landings at major U.S. airports per 10 years
99% will not cut it in todays world! Our customers demand better!
Six Sigma DMAIC

DEFINE MEASURE ANALYZE IMPROVE CONTROL
Charter team ID customers Capture voice of the customer(s) ID critical Ys Estimate initial benefits Ensure strategic linkage Develop timeline
Baseline performance Validate measurement system Characterize critical Ys Map process Determine failure modes & seventies ID potential Xs
Identify key sources of variation Focus on critical few Eliminate trivial many Identify benchmarks Estimate benefits Target gap assessment
Quantify Y=f(X) Identify possible solutions to shift mean and/or shrink spread Estimate cost/benefits Pilot improvement Implement optimal solution
Institutionalize changes Ensure solution is owned by stakeholders Modify control systems Estimate final benefits Develop validation plan Final sign-off
DMAIC provides
A proven problem-solving methodology A data-driven problem-solving process A set of statistical tools

Six Sigma Example Low First Pass Yield, High Cost of Quality
Count
60 40 30 20 20 10 0 0
n s ig De t en on mp Co ild Bu er Oth
40
Percent
Define
Problem Definition: Critical manufacturing & assembly process variability is driving 60% FPY & Cost of Quality 30% above Plan Multi-level Pareto Analysis sharpened the teams focus & pointed to the biggest contributors Process mapping, fishbone diagram, & graphical analysis identified the critical few causes
Fault by Main Cause

100 70 60 50 80
Defect
Count Percent Cum %
Design Faults
100 80
57 75.0 75.0
13 17.1 92.1
4 5.3 97.4
2 2.6 100.0
Count
60 30 20 10 0 40 20 0
t ec nn Co le du Mo rs oto eM rqu To ld Co rt Sta n ule tio od rM libra ce Ca du IC ns AS Tra IOP n Imo
Defect
Count Percent Cum %
21 36.8 36.8
10 17.5 54.4
8 14.0 68.4
8 14.0 82.5
5 8.8 91.2
3 5.3 96.5
2 3.5 100.0
Analyze
Regression Plot
Y = -5.25290 + 1.82E-02X R-Sq = 88.0 %
147
146
Vsat (V)
Improve
Regression Analysis & Design of Experiments quantified the relationship between the causes & the effects & yielded a low-cost solution Standard work was revised to institutionalize the process improvements Metrics impact was validated over time Improvements were leveraged to other products
145
144
Regression 95% CI
143 8200 8250 8300 8350
95% PI
Total Weight MS & MR
First Pass Yield

100 90 80 70 60 50 40 30 20 10 0 j f m a m j j a s o n d
Control
22
Percent
Measure
50 40
Combining Lean & Six Sigma Think about any typical process
Value Added Activity
Six Sigma focuses primarily here Lean focuses primarily here
Non-Value Added Activity
Lead Time
Lean predominant impact is on Process Speed Six Sigma predominant impact is on Process Quality
Continuous Improvement = Lower Costs, Better Six Sigma Lean = Continuous Improvement Quality, High+ Customer Satisfaction, and Excellent Business Results
Toolbox Approach to CI Business problem defines required mix of tools Use whatever tool & improvement activity that best suits the problem
Process Mapping Time Observations Voice of the Customer Design For Mfg/Assembly SWCS Cause & Effect Diagramming
Risk Analysis 5Ss SWS Mistake Proofing Design of Experiments Visual Controls Root Cause Analysis % Load Charts Lean Waste Way Planning Product Cost Reduction Measurement System Analysis Control Charting Process Capability Analysis Design Scorecards Creative Problem Solving
When uncertain which to use, let common sense prevail select the approach that will work best in the local environment & stick to the fundamentals
CI Key Enablers Key Enablers

Committed LEADERSHIP is essential to success Maintaining a strong CUSTOMER FOCUS assures were fixing the right things Effective PROCESS MANAGEMENT accelerates improvement & helps us hold gains Must drive improvement goals through the enterprise using effective STRATEGY development & deployment Careful attention to ORGANIZATIONAL DEVELOPMENT builds important foundations for continued success Carefully chosen METRICS help us monitor our rate of improvement & make course corrections when needed Rigorous & thoughtful USE OF CI TOOLS is the engine that propels improvement
These are the Key Enablers needed to achieve Operational Excellence

Todays Agenda Logistics & Course Objectives What is Continuous Improvement Change Continuous Continuous Improvement Improvement Enablers Enablers Continuous Improvement Enablers Leadership Leadership Customer Focus Process Management Strategy Organizational Development Metrics Application of CI Tools Summary
26
Why Leadership is Essential to CI Leadership creates the CI environment Resources are effectively applied to the Enterprises opportunities Make a conscious choice to drive change Take deliberate & sustained action Employees consider CI part of their daily routine Leadership drives the pursuit of Operational Excellence Customers needs are satisfied Stakeholder expectations are met Unwavering commitment to CI Leadership is the single most important factor in the success or failure of change efforts
Class Discussion
Who are Leaders? How can you be a CI Leader?
28
Todays Agenda Logistics & Course Objectives What is Continuous Improvement Change Continuous Improvement Enablers Leadership Customer Focus Customer Focus Process Management Strategy Organizational Development Metrics Application of CI Tools Summary
29
Definitions A Customer is the receiver of our product or service Customers are either External Goodrich, HAL, ISRO, Distributors, etc. Internal person performing the next process step, assembly department, accounting, etc. Customer Focus refers to a commitment to continually work to better understand & serve the needs of all our customers
30
VOC Exercise The customer wants a tower as tall as possible to support a cup of water 10 Min to come up with a plan 15 Min to build the tower The customer will allow 1 representative to ask questions concerning the specifications or rules during the planning phase
31
Why Customer Focus is Essential to CI Customer Focus Guides Our CI Efforts Helps us target those improvement opportunities that will best enhance value delivery to our customers & improve the effectiveness of internal operations The resulting improvement in customer satisfaction Leads to enhanced business performance Provides stability & growth opportunities
32
Customer Satisfaction is a Moving Target Continuous Improvement of products, processes or services is required to maintain customer satisfaction over time
E X A M P L E S
DC-3 LP Album 286 Pony Express Party Line B707 8 Track 386 US Mail Home Phone B747 Cassette 486 Fed Ex Cell Phone SST CD Pentium Email Satellite Phone B787/A380 MP4 Nano/Bio BlackBerry Internet Phone
Excitement
Customer Delighted Customer Satisfied Customer Dissatisfied
Acceptability
Time
Customer expectations continue to increase. The same product or service over time may transition from delight to satisfaction to dissatisfaction.
Todays Agenda Logistics & Course Objectives What is Continuous Improvement Change Continuous Improvement Enablers Leadership Customer Focus Process Management Process Management Strategy Organizational Development Metrics Application of CI Tools Summary
34
Definitions A Process is a series of operations required to transform inputs (materials and/or information) into a finished product Process Management is designing & managing product & information flows from a process, rather than a functional, perspective Inputs Suppliers
Process
Outputs Customers
What are some of your processes?
35
Why Process Management is Essential to CI Most business activities cut across functional boundaries, so the value-added part of the business is better understood when viewed as a total process rather than a sum of functions or tasks Improvement opportunities are easier to identify & realize when we look at activities from a process perspective because we can see steps that do not add value to the customer or that waste our time, materials and other resources
36
Process Management Why change from Functional focus to a Process focus? Functional Focus Sub-optimization Best for function Metrics drive non-lean behavior Superstars (we/they) Much effort spent on routine/reporting Specialized workers, engineers & leaders Process Focus Optimize the whole Best for the customer Metrics drive value focused behavior Teamwork Encourage support & focus resources on improvement Multi-functionally skilled employees
Process management allows us to better meet customer expectations

Focus on the Value Stream
Customer
Goodrich Products
Suppliers
Airline Customers
Raw Material OEM / Airframers Goodrich Manufacturing Processes Goodrich Service Processes
Value Stream The specific activities required to design, order & provide a specific product, from concept to launch, order to delivery & raw materials into the hands of the customer. - Lean Thinking, Womack & Jones
Todays Agenda Logistics & Course Objectives What is Continuous Improvement Change Continuous Improvement Enablers Leadership Customer Focus Process Management Strategy Organizational Development Organizational Development Metrics Application of CI Tools Summary
39
Definition Organizational Development involves creating an environment that supports high performance by Engaging the entire workforce in CI activities Assuring that employees have the right skills Developing structure & process to manage improvement efforts
The only differentiator among the competition will be the effectiveness of their employees
40
Todays Agenda Logistics & Course Objectives What is Continuous Improvement Change Continuous Improvement Enablers Leadership Customer Focus Process Management Strategy Organizational Development Metrics Metrics Application of CI Tools Summary
41
Why Metrics are Essential to CI Effective metrics guide the application of our CI tools to improve our processes Metrics provide vital information Leading indicator of business success/failure Identify opportunities for improvement Help to prioritize improvement efforts Help to evaluate the effectiveness of our CI efforts Metrics should show sustained improvement as a consequence of our commitment to CI What gets measured gets improved
Types of Metrics Metrics can be grouped into two categories
RESULTS MEASURES: These are final outcomes that are important to our stakeholders. Other names include goals, business measures, performance measures.
DRIVER MEASURES: These metrics influence the results measures.
43
Metrics by Organizational Level

Typically results metrics
CEO/President Vice Presidents Directors

External/Corporate reporting Financial reporting Look backwards Higher level, little value or understanding at lower levels
Typically roll-up metrics
Managers Supervisors Microprocess workers
Summarize lower levels Add little value by themselves
MUST be Driver Measures

Predictors of success Daily progress measurement Owned by the workgroup Actionable/controllable here Often measure actions
44
Corporate Performance Metrics Performance Measurement & Reporting

Finance Sales Operating Income Cash Flow Working Capital Earnings Inventory Supply Chain Direct Material Cost Savings Supplier OTIF Supplier Quality Operations % Good Quality % On time Delivery CI Cost Savings Cost of Quality/Cost of Poor Quality Recordable Rate Lost Time Incidence Rate Infrastructure % MFG in Low Cost Countries Foreign Exchange Exposure
Todays Agenda Logistics & Course Objectives What is Continuous Improvement Change Continuous Improvement Enablers Leadership Customer Focus Process Management Strategy Organizational Development Metrics Application of Tools CI Tools Application of CI Summary
46
Value-Added vs. Non-Value-Added Every time we perform a manufacturing activity, we incur some cost Customers are willing to pay us only for those activities which they view as beneficial to their product These beneficial activities are generally referred to as value-added Problems occur when nonvalue-added activities become significant within a process
$4M $ 0.74 M $ 0.77 M $ 0.09 M $ 0.91 M $ 0.25 M $ 1.24 M Painting Assembling Rework Sanding Moving Folding
47
Value-Added vs. Non-Value-Added Every time we perform a manufacturing activity, we incur some cost Customers are willing to pay us only for those activities which they view as beneficial to their product These beneficial activities are generally referred to as value-added Problems occur when nonvalue-added activities become significant within a process
$4M
$ 3.54 M $ 0.66 M $ 0.52 M $ 0.74 M $ 1.12 M Painting Assembling Sanding Folding
48
Non-Value-Added = Waste The good news: non-valueadded activities are very easy to spot once you know what youre looking for CI practitioners generally refer to these types of activities as waste Taiichi Ohno, father of the Toyota Production System, classified seven types of manufacturing waste
49
Waste #1: Inventory

Inventory is one of the more insidious wastes Its easy to tell ourselves that inventory is good
We can respond more quickly to our customer It keeps our machines & workers busy during business lulls Financially, inventory is an asset
Sailing on a sea of inventory
But inventory actually hides production problems & ties up our cash
Poor quality, long setup times, lack of housekeeping, machine breakdowns, absenteeism, etc.
Waste #2: Defects Defects are an obvious waste Whenever we put time & effort into making something that doesnt meet customer requirements, weve created waste Even when a product itself meets customer requirements, we can create defect waste by failing to document an inspection, leaving a manual out of a shipment, etc.
vs.
vs.
vs.
51
Waste #3: Waiting Time we spend waiting on materials or other workers is a waste But we shouldnt work just to avoid waiting when there is no demand for our product
Cheese delivered 3:30 p.m. daily
52
Waste #4: Overproduction Overproduction occurs whenever we build more than is currently demanded by customers We can be tempted to overproduce in order to keep our machine efficiencies up & beat labor standards While overproducing will improve those metrics, the negative financial impact of overproduction is of greater concern
Waste #5: Processing There are two primary causes of processing waste Working to a finer tolerance than that demanded by the customer Working too long on each piece because our process lacks capability Each of these wastes indicates a problem with the process itself
Ze customer has specified painted doors!
54
Waste #6: Motion Motion waste occurs whenever workers have to move excessively to do their jobs This can include walking between several locations & twisting & turning within a single work location Lack of motion can also be a waste watching the wash
55
Waste #7: Transportation Moving parts, equipment, setup tooling & machines around within a production process is wasteful Manufacturing floors are susceptible to this type of waste because people like to organize by department instead of by product
Final Inspection
Shipping & Receiving
Testing
Production
56
Seven Wastes in the Office We dont all work in a manufacturing environment, but the seven wastes still apply to our jobs
Inventory Defects Waiting Overproduction Processing Motion Transportation Full inboxes, lengthy To-Do lists, long work queues Memos containing spelling & grammar errors Delaying a meeting until a coworker returns from vacation Excessive e-mail cc-ing Routing documents for approval Walking to the copier/printer/fax machines Interoffice mail
57
5S A method of creating a self-sustaining culture that perpetuates a neat/clean/efficient workplace Helps establish, reinforce & discipline the Standard Work A Toyota Production System foundation
Sort Straighten Shine Standardize Sustain
Clearly distinguishing between what is necessary & disposing of the unnecessary Organizing the necessary items so that they can be used & returned easily Taking proper care of your work space Maintaining & improving the standards of the first three Ss Achieving the discipline or habit of properly maintaining the correct 5S procedure
58
5S Examples
59
Point of Use (POU) Point of Use refers to the practice of providing tools, parts, materials & information at the point where they will be needed, in the quantity needed, & arranged in the sequence of use
Put tools & parts in build / use sequence
60
Visual Controls 5Ss & visual workplace are complementary A visual workplace is when anyone can walk in & visually understand the current situation Workplace organization The work process When there is an abnormality If they are ahead, behind or on schedule We create the visual workplace with visual controls
61
Visual Controls
Andon light indicating the current process status
Monitor indicating aircraft schedule status
62
One Piece Flow One Piece Flow is Commonly called continuous flow manufacturing The opposite of Batch Production Processing product one unit at a time, e.g., one unit could be one shipset of product The Toyota Production System strives for One Piece Flow One Piece Flow assures lowest cost & highest quality by eliminating waste
63
Setup Reduction Often called SMED (Single Minute Exchange of Dies) A process for dramatically, logically & methodically reducing setup or changeover time Machine tools & dies Task change over To enable significant reduction of lot sizes & approach Single Piece Flow Batch processing parts or tasks Supports mixed model, daily production Fabrication shop Office environment
Physical Layout
Lean layouts assure 3 flows The flow of objects The flow of people The flow of information
65
Physical Layout U-shaped Cells Support one piece flow Enable developing multi-skilled employees Eliminate return trips Support visual control
After Before
Right Sizing Only the right amount of resources Equipment Space Work surface Material
to support One Piece Flow Work station no larger than part

Before After
67
Pull Manufacture/provide the service & deliver What is needed When it is needed In the quantity needed
OK, let me have the next one.
68
Kanban
Kanban is a Japanese term meaning sign or placard; we use kanbans as signals within a process that tells us when to produce
Operators will each have an upstream kanban & a downstream kanban I must produce
downstream
Kanbans are sized to hold only one item when a process is at One Piece Flow
An empty downstream kanban is a signal to the operator to perform their operation, pulling material from their upstream kanban
69
Takt Time It represents the drumbeat of customer demand
TAKT Time =
Available Time
Available Time Sold Units
Recognizes productive time available for making a product or providing a service Sold Units Driven by Customer Demand & reinforces the concept of MAKING ONLY WHAT IS NEEDED; NO OVERPRODUCTION
70
Cycle Time Cycle Time = Manual + Walking + Waiting Time For one cycle of work sequence
Operation 2 Fuselage Fold
7/25/06
Lot #1
Incoming
Outgoing
0:00 0:01 0:02

The time for an employee to do a prescribed task & return to his original stance. - Taiichi Ohno
Percent Load Chart Compares cycle time to takt time; goal is CT = TT Will show all employees in the process Highlights opportunities for improvement Can be used whether or not the tasks & activities are repetitive
Cycle Time (min)
Cycle Time (min)
15 10 5 0
TT = 10 Sec
15 10 5 0
TT = 10 Sec
Operator/Operation
2006 Goodrich Corporation CI Overview -- Revision 2
Operator/Operation
72
Voice of the Customer Voice of the Customer (VOC) is a tool that Allows us to better understand our customers needs & how they perceive our products & services Helps guide our selection of improvement projects Key steps
1. Identify customers & define what we want to learn about them. 2. Gather all available data about customers needs & perceptions. 3. Analyze data to develop list of key customer needs. 4. Translate customer needs into Critical to Quality requirements (CTQs). 5. Define specifications for CTQs.
Use this info to define key projects.
73
Data Collection Plan Provides a systematic approach to measuring current performance Plan should address:
What is being measured? How many measurements will we take? Who will take measurements? How will measurements be taken? How will we measure the same way every time? When will measurements be taken? What type of sampling will we use? Where will we record the data?
74
Histogram
A histogram is a bar chart that shows frequency of occurrence across a range of values Lets look at an example
Airplane Flight Performance
10 9
Flight No.
Distance from Center Line
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1 2 3 4 5 6 7 8 9
10 19 15 20 24 14 17 11 13 16 -5 -8 -1 -2 -4 1 6 5 4 8 7 2
Number of Occurrences
Acceptable Region 8 7 6 5 4 3 2 1 0 -15 -12 -9 -6 -3 0 3 6 9 12 15 18 21 24 26
Deviation from Center Line (inches)

Process Mapping A systematic method for visualizing a process Creates a common understanding about what is happening Clarifies steps in the process Helps identify improvement opportunities in the process (complexity, waste, delays, inefficiencies and bottlenecks) Helps uncover problems in the process A gap between Reality and Ideal shows room for improvement
Theory...
Ideal...
Reality...
How to Create a Process Map

Hotel Check-out Process
Process Name
Work with a group so you can get multiple viewpoints Brainstorm action steps Write these on sticky notes or on a flipchart Make sure to include the steps that occur when things go wrong Arrange the steps in sequence Be consistent in the direction of flow - time should always flow from top to bottom, or from left to right Use appropriate flowchart symbols Check for missing steps or decision points
77
1 Approach f ront desk
2 Is there a line?
YES
3 Wait
NO
Numbered steps
4 Step up to desk
Clear direction of flow (top to bottom or left to right)
5 Clerk av ailable?
NO
6 Wait
Key of symbol s
YES
7 Giv e room number
Start/End Action/Task
Consi stent level of detail
8 Check bill Decision 9 Charges correct?
Sequence
NO
10 Correct charges
YES
11 Pay bill
Date of creation or update & name of creator
Clear starting and ending points
Root Cause Analysis: 5 Whys Based on customer expectations where are the problems occurring? Ask WHY? at least 5 times to get to the root cause Because weve always done it that way, is NOT a root cause
centerline
Turn the problem into an opportunity

Root Cause Analysis (cont.): Cause & Effect Diagram The cause & effect (or fishbone) diagram is an effective tool to help stimulate thinking while trying to identify possible root causes of a problem
Major categories of root causes form the main bones of the fish First tier causes attach to main categories
Human
Machine
Materials
Second tier causes attach to first tier causes
Problem Description
Method
Environment
Measurement
Problem Statement is at the head of the fish
79
Mistake Proofing Ingenious devices to prevent the processing of discrepancies (data, information, parts or materials) by the use of gauges, gates, deflectors, sensors, limit switches, etc. In such a way that only acceptable results will be allowed to proceed to the next downstream operation Examples
Compare to a completed product

Compare to a sensory standard

Use a gauge or meter

Use a physical constraint

Mistake-Proofing Devices On Your Car

Cant fit a diesel nozzle in the gas tank Bell chimes when seatbelt not worn Light indicates that parking brake is engaged Doors lock when speed is greater than 5 mph Gas cap is attached to car by a lanyard Bell chimes when turn signal left on Bell chimes when headlights left on Indicator lights when fuel is low Oil & fuel specs are listed on caps or tanks Cant start the car unless its in park or clutched Headlights automatically burn & extinguish
81
Total Productive Maintenance

Total Productive Maintenance (TPM) is a key element of Lean Operations We cant maintain CT=TT if equipment is down
A common sense approach to optimizing equipment uptime, part quality & safety
Needs the participation of all operations personnel operators, maintenance & management A long-term commitment, it takes 3-5 years to become world-class A tool that improves teamwork between team leaders, operators & maintenance personnel
Multi-Skilled Employees
The leanest process may require workers to provide effort in a variety of tasks
Rigid job classifications & skill sets are in direct conflict with teamwork & reduce flexibility to meet customer needs
Multi-skilled workers are capable of maximizing teamwork & performance
83
Todays Agenda Logistics & Course Objectives What is Continuous Improvement Change Continuous Improvement Enablers Leadership Customer Focus Process Management Strategy Organizational Development Metrics Application of CI Tools Summary
84
Course Objectives Revisited Now you should understand What is Continuous Improvement Why we need to continuously improve The Goodrich Operational Excellence Culture and the role of Continuous Improvement (CI) in our Strategy Basic CI tools & processes How Lean & Six Sigma work together What it takes to be successful in our efforts to continuously improve (CI Enablers) How CI relates to your job function
Key Enablers and Operational Excellence LEADERSHIP Essential to success CUSTOMER FOCUS Assures were fixing the right things PROCESS MANAGEMENT Accelerates improvement STRATEGY Effective development & deployment drives improvement goals through the enterprise ORGANIZATIONAL DEVELOPMENT Builds important foundations for continued success METRICS Help us monitor our rate of improvement & make course corrections when needed USE OF CI TOOLS The engine that propels improvement
All seven Key Enablers must be occurring for us to reach Operational Excellence
Expectations Each Employee Actively participate in CI Drive CI Accept Change Adapt CI culture To Aggressively achieve Operational Excellence
Operational Excellence
87
Exercise
List at least two ways you are going to apply lessons learned today in your area of work
88

Continuous Improvement

Diunggah oleh

Informasi Dokumen

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

Continuous Improvement

Diunggah oleh

Hak Cipta:

Format Tersedia

Continuous Improvement Overview

Quest for Operational Excellence

2006 Goodrich Corporation

2006 Goodrich Corporation

2006 Goodrich Corporation

2006 Goodrich Corporation

2006 Goodrich Corporation

This most likely means a change to how we do things today

Adapting to Changing Business Environment

2006 Goodrich Corporation

One Perspective on Change

2006 Goodrich Corporation

What are significant barriers to change?

How might we overcome these barriers to change?

2006 Goodrich Corporation

Denial Immobilization Depression

Eliminating waste and variation is key to Continuous Improvement

Make value flow

As pulled by the customer

Dont Automate Waste

2006 Goodrich Corporation

2006 Goodrich Corporation

Lean Example in the Factory Before - Traditional Batch

Isolated Workers Poor Teamwork Large Batches

Cluttered, Unsuitable Work Area

One Piece Flow Reduced Leadtime Cell Team Working

2006 Goodrich Corporation

2006 Goodrich Corporation

to reduce variation and

center the process!

2006 Goodrich Corporation

Why Six Sigma?

99% is not good enough

6 Sigma (99.99966% Good)

Six Sigma DMAIC

A proven problem-solving methodology A data-driven problem-solving process A set of statistical tools

Fault by Main Cause

Total Weight MS & MR

First Pass Yield

2006 Goodrich Corporation

Non-Value Added Activity

CI Key Enablers Key Enablers

These are the Key Enablers needed to achieve Operational Excellence

2006 Goodrich Corporation

Who are Leaders? How can you be a CI Leader?

2006 Goodrich Corporation

2006 Goodrich Corporation

2006 Goodrich Corporation

2006 Goodrich Corporation

2006 Goodrich Corporation

Customer Delighted Customer Satisfied Customer Dissatisfied

2006 Goodrich Corporation

What are some of your processes?

2006 Goodrich Corporation

2006 Goodrich Corporation

Process management allows us to better meet customer expectations

Focus on the Value Stream

2006 Goodrich Corporation

2006 Goodrich Corporation

2006 Goodrich Corporation

Types of Metrics Metrics can be grouped into two categories

DRIVER MEASURES: These metrics influence the results measures.

2006 Goodrich Corporation

Metrics by Organizational Level