JR Dickens - FPS 2004

Developing "New Eyes" to See Waste At All

Manufacturing Levels

Robert Dickens, Ph.D.Temple-Inland Inc., Diboll, TX

OutlineOld eyes

Simple tools

Breakthrough improvement

Paradigm IQ TestThere is a mute man who wants to buy a toothbrush. By imitating the action of brushing one's teeth, he successfully expresses himself to the shopkeeper and the purchase is done.

Duh. . .OK

Paradigm IQ Test: Question

Now, if there is a blind man who wishes to buy a pair of sunglasses, how should he express himself?

Paradigm IQ Test: AnswerHe opens his mouth and says:

"I would like to buy a pair of sunglasses."

Doh!

Gig ‘em

Aggies

“Thanks!”

Old EyesWhat are some common expressions we use to illustrate the problem of paradigm paralysis?

Common Expressions:“I couldn’t see the forest for the trees.”

“If it had been a snake, it would have bitten me.”

“It was right under my nose.”

Common Expressions:“I can’t believe my eyes.”

“Love is blind.”

“He’s got tunnel vision.”

The Nugget of TruthWhat is the axiomatic truth behind these kinds of expressions?

We often fail to see the obvious when the data contradicts our expectations!

Why?

Experience vs. BiasOftentimes, the more experience we have, the harder it is to see opportunities.

We become unconsciously biased in regard to what the process can or cannot do.

Believing is SeeingIn psychology, we say that “expectation influences perception.”

Put another way, we see what we expect to see (or want to see) – even if it’s not there.

And, we fail to perceive something we don’t expect to see.

Blinded by the LightWhile paradigms provide organizational stability by setting boundaries and rules, they can blind us to opportunities.

Looking at the process with “fresh eyes” can lead to breakthrough improvements.

Simple ToolsThere are a number of simple ways to find waste at all levels.

We will mention a few simple tools and then spend some time on one particular approach.

Just Imagine . . . One way to find waste is to imagine what the process would look like if it were perfect.

Create a flow chart of the current processCreate a flow chart of the “perfect” processCompare and contrast current reality vs. perfection

Customer Point-of-ViewWalk a mile in the customer’s shoes. Ask the question: “What would the customer be willing to pay for if they knew everything we do?”

Strive to eliminate problems that lead to rework and other non-value-added work.

InventoryLook for piles of inventory.High inventory levels (RM, WIP, FG, and SP) may point to an underlying problem.

Process bottlenecks, scheduling issues, process efficiency, machine setup, and reliability are all potential culprits.

P&LLooking at the P&L may be helpful, but it’s important to remember that cost is only a symptom.

Like an iceberg, most waste is hidden well below the surface.

Dow ngrade

Dow ntim e

CustomerClaim s Excess M aterial

Usage

Reject

Inspection& Testing

Costs

ExcessiveSystemCosts

ExcessiveEm ployeeTurnover

Prem iumFreightCosts

Lack ofFollow -upon CurrentProgram s

OverdueReceivables

Com plaintHandling

Over/UnderSpecifying

Product

Time w ithDisatisfiedCustomers

UnusedCapacity

ExcessInventory

LateShipments

ExpeditingCosts

PlanningDelays

Labor &Overtime

Fresh EyesBring in someone with a fresh perspective – someone who knows nothing about the current process and isn’t biased by preconceived ideas of what can or cannot be done.

Encourage them to ask questions!

Question EverythingDeliberately question the details. Ask “why?”

Asking “why?” will help expose the underlying assumptions about the process.

Sacred CowsAsking “why?” tends to expose sacred cows – outmoded ideas and practices.

Hint: Useless meetings and useless reports are two of the “biggies.”

Be careful here . . . some sacred cows have horns!

Breaking ParadigmsAny or all of the simple tools we’ve mentioned can help us break out of our existing thought patterns and discover previously “hidden” opportunities . . . but there is another paradigm we need to break along the way.

Quality vs. CostConventional wisdom says, “The higher the quality, the higher the cost.”

In reality, it’s possible to reduce cost and improve quality at the same time.

How?

Quality - The “Old” WayWhat are the three things we do when quality problems occur?

Slow down the processAdd raw materials Inspect more rigorously

The net result? Lower productivityHigher costs Increased downgrade losses

Process Improvement – The “Old” Way

Ratchet up the line speed until the machinery starts to fly apart.

Ratchet back on key cost drivers (raw materials) until the board starts to fail properties.

Ratchet back on downgrade criteria until the customer starts to complain.

Quality - The “New” WayWhen quality problems occur, trace them back to the root cause.Addressing the root cause eliminates the problem before it can start.

Where should we look for root causes?Process variation!

Process Improvement – The “New” Way

Identify the key variables driving your process.Determine the sources of variability and eliminate them.

By understanding and controlling variation, breakthrough improvements are possible.

Process VariationThis practitioner is convinced that most of our problems (and opportunities) are to be found by studying process variation. This is the part of the iceberg hidden below the water line.

Variation means not being able to repeat what you just did – whether good or bad.

Process VariationLarge process variations account for chronic problems which often seem to defy explanation.

Process variation can be inherent – built into the process.Process variation can be external – arising from controllable sources.

Inherent VariationVariation that is built into the system is referred to as “common cause” or “random cause.”

Common cause variation is a function of process capability – it’s the best you can do under ideal circumstances.

External VariationVariation that comes from outside the process is called “special cause” or “assignable cause.”

Special cause variation can arise from a number of sources – e.g., raw materials, people, and automated control systems.

OpportunityBoth types of variation can provide opportunities for improvement, but we usually prefer to start with “special causes.”

Process capability is unknowable until we can eliminate special causes of variation.

Measurement SystemsIn order to know anything about our process, we have to have a way to measure what’s going on.

Measurement system analysis ensures that our data isn’t garbage.Bad data provides no basis for problem analysis or decision-making!

Example – MC VariationThe following slide shows an x-bar-R chart for the moisture content of wood furnish exiting the predryer in a particleboard plant.The MC varies drastically and demonstrates lack of statistical control.

Example – MC Variation

Sample

Sam

ple

Mea

n

30272421181512963

6.0

5.5

5.0

4.5

4.0

__X=4.909

UCL=5.215

LCL=4.603

Sample

Sam

ple

Ran

ge

30272421181512963

1.6

1.2

0.8

0.4

0.0

_R=0.530

UCL=1.122

LCL=0

1

11

11

11

111

11

1

1

1

1

58

1

1

1

1

15

1

5

22

2

22

2

222

2

2

222

1

1

Xbar-R Chart of Sample 1 - Sample 5

Example – MC VariationInvestigation revealed that the feedback control loop was over-adjusting the damper which controls air flow through the dryer.

After retuning the control loop . . .

Example – MC Variation

Sample

Sam

ple

Mea

n

60544842363024181261

6.0

5.5

5.0

4.5

4.0

__X=5.127UCL=5.316

LCL=4.938

B A

Sample

Sam

ple

Ran

ge

60544842363024181261

1.6

1.2

0.8

0.4

0.0

_R=0.327

UCL=0.692

LCL=0

B A

51

155

1

1

11

11

11

111

11

1

1

11

58

1

1

1

1

15

1

5

1

22

2

22

2

222

2

2

222

1

1

Xbar-R Chart of Sample 1_1 - Sample 5_1 (Before and After)

MC VariationMC variation is particularly critical in panel board production.

High variation at the early stages of the process will lead to high variation downstream.

Numerous chronic process/quality problems can be traced to MC variation.

Operator VariationAnother significant source of process variation is the operator who’s sitting at the control panel.

Operator VariationJust ask yourself: What happens right after a shift change?

Now ask yourself: What would happen if we could get every operator to run the equipment exactly the same way?

Process ImprovementBy removing sources of variation and stabilizing the process, we’ve created a good starting point for improvement.

Achieving consistency is the first step.

VariationThese simple examples help illustrate that stabilizing and improving the process need not cost large sums of money.

However, it does require discipline and determination.

RoadmapsProblem-solving methodologies provide the roadmap for improvement

PDSA – Plan, Do, Study, ActDMAIC – Define, Measure, Analyze, Improve, Control

Methodologies help organize the toolbox

ConclusionBy using a few simple paradigm-breaking tools, we can begin to see our process in a way that reveals latent opportunity.

By focusing improvement efforts on controlling variation, quality and consistency of products improves while reducing total operating cost.