1 Reduction in Cost of Poor Quality (COPQ) Quality improvement project PROPRIETARY AXALTA COATING SYSTEMS About Axalta Axalta Coating Systems: fact file 150 years in the coatings industry 46 manufacturing facilities 4 global technology centers 30+ country technology laboratories 47 customer training centers Doing business in 130+ countries 100,000+ customers, 4,000+ distributors More than 13,000 employees 1,400+ scientists, engineers and technology staff 1,000+ patents 2016 net sales of $4.1 billion History For more than a century and a half, Axalta has been at the leading edge of developing coatings and application tools that are designed to help our customers succeed. We will continue to evolve as we have from the inception of our business in 1866 to manufacturing next generation, more environmentally compatible products needed in the 21st century. Our commitment to quality, technology, and innovation will enable us to continue to put our customers first and lead the industry for the next 150 years. Axalta India State of the art manufacturing facility is located at Savli in Vadodara (India) catering to both local as well as regional requirement for the Refinish , Automotive Plastic Coatings and Industrial segments covering Thailand, Indonesia, Sri Lanka, Abu Dhabi, Philippines, South Korea, and Malaysia 2
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Reduction in Cost of Poor Quality (COPQ)
Quality improvement project
PROPRIETARYAXALTA COATING SYSTEMS
About Axalta
Axalta Coating Systems: fact file150 years in the coatings industry
46 manufacturing facilities 4 global technology centers
30+ country technology laboratories47 customer training centers
Doing business in 130+ countries100,000+ customers, 4,000+ distributors
More than 13,000 employees 1,400+ scientists, engineers and technology staff
1,000+ patents2016 net sales of $4.1 billion
HistoryFor more than a century and a half, Axalta
has been at the leading edge of developing coatings and application tools that are designed to help our customers
succeed. We will continue to evolve as we have from the inception of our business in
1866 to manufacturing next generation, more environmentally compatible
products needed in the 21st century. Our commitment to quality, technology, and innovation will enable us to continue to
put our customers first and lead the industry for the next 150 years.
Axalta IndiaState of the art manufacturing facility is
located at Savli in Vadodara (India) catering to both local as well as regional
requirement for the Refinish , Automotive Plastic Coatings and Industrial segments covering Thailand, Indonesia, Sri Lanka,
Abu Dhabi, Philippines, South Korea, and Malaysia
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PROPRIETARYAXALTA COATING SYSTEMS
Axalta – Customers and Products
Light VehiclesVehicle coatings are our oldest products and date back to the carriages of the 19th century. First applied to automobiles more than 90 years ago, Axalta coatings are visible today on most of the world’s leading cars, light trucks, and SUVs. For discerning buyers, the color and visual effects created by today’s sophisticated paints can be one of the most important deciding factors in the choice of a new car. And, beneath the colorful finish, our coatings protect the metal and composite components of the body, adding years to the vehicle’s life.
Commercial VehiclesCoatings on heavy duty trucks, buses, and trains are designed to protect vehicles from the destructive effects of constant exposure to weather, sunlight, and harsh road conditions. Colorful coatings also have become an integral part of corporate marketing strategies. Many logistics and delivery fleets, as well as manufacturers of buses, trains, and agricultural and construction equipment, use color to promote their specific brand identity. This combination allows for highly recognized vehicles that stand out on the road and stand up to the elements.
RefinishNo matter how tough the coating, the need for repairs is inevitable in the life cycle of almost any vehicle due to aging, collisions, and other unavoidable events. Axalta provides a full spectrum of coatings and application technologies that enables the collision repair industry to match color and repaint vehicles to meet the original specifications. Our coatings for repair and our color matching tools are designed to help refinish technicians achieve a perfect color match as efficiently as possible. Business management tools from Axalta designed to help better manage the repair process can increase body shop efficiency and productivity.
IndustrialIndustrial development has evolved and so has the need for sophisticated coatings that are formulated to protect a catalog of diverse products from harsh environments and operating conditions. Axalta coatings protect pipes from corrosion underground and add beauty to household appliances. Architectural coatings enable outdoor structures such as building facades and outdoor furniture to withstand extreme climates. Electrical insulation coatings protect products ranging from large electric motors to the smallest electronic components of computers to improve their efficiency while saving energy. Axalta electro coat products protect materials from corrosion.
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PROPRIETARYAXALTA COATING SYSTEMS
The market situation today in India is competitive, whereinthe businesses are facing big challenge to provide theircustomers with products at a low cost without affecting thequality of the product and services. In order to sustain thiscompetition, Axalta Coating systems India Pvt. Ltd. isfocusing to reduce the Cost of Poor Quality (CoPQ).
CoPQ is defined as “the cost which would beeliminated if a company’s products and the processes inits business were perfect”.
‘Reduction in CoPQ’ project helped Axalta India to identifyprocesses improvement opportunities in its value chain,which further were evaluated in relation to otherimprovements and loss reduction.
Accomplishment of this project helped AxaltaIndia to realize CoPQ reduction from 0.43% of sales to0.20% of sales in 2016. Audited savings to the tune ofK$101.55 or ₹66 lakhs (INR)
Project summary
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PROPRIETARYAXALTA COATING SYSTEMS
▪ 1.1.0 Understanding the Context for Project Selection
✓ 1.1.1. A – Who was responsible for selecting the project?
Pre-mixing Dispersion Let down Shading Filling FG warehouse
Raw material/Packaging material Warehouse
Mother Warehouse
Suppliers Customers
Inventory variation
Customercomplaints
Monthly plan
Product damage during transit
Customer Support Representative
▪ 1.1.0 Understanding the Context for Project Selection
✓ 1.1.1. B – What background information on the company or those who selected the
project was provided to better understand the context of the project?
1. Project and team selection
• Axalta India caters to both local as well as regional requirement for the Refinish , Automotive Plastic Coatings and Industrial segments covering Abu Dhabi, Indonesia, Philippines, South Korea, Malaysia & Thailand.
• In 2015, CoPQ losses were high, i.e., 0.43% of net sales
PAINT MANUFACTURING VALUE STREAM POPULAR PRODUCTS
AXALTA INDIA IS EXPORTING TO MIDDLE EAST, ASIA PACIFIC REGION COUNTRIES
Cost of Poor
Quality (CoPQ)
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PROPRIETARYAXALTA COATING SYSTEMS
▪ 1.2.0 Project Selection Process
✓ 1.2.1. A – How was the gap or opportunity brought into the attention of the project identification group?
✓ 1.2.1. B – What was the opportunity (process improvement)? 1.2.1.C - What area of the organization had the gap or the opportunity?
1. Project and team selection
PROJECT IDENTIFICATION GROUP
Increase in COPQ
1.2.1.C
1.2.1.A
1.2.1.B
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PROPRIETARYAXALTA COATING SYSTEMS
All customer complaints recorded in SFDC portal
Financial reports collected through SAP (ERP system)
▪ 1.2.0 Project Selection Process
✓ 1.2.2. A – What data was generated to help select the project?
1. Project and team selection
GL Code Particulars 01'15 02'15 03'15 04'15 05'15 06'15 07'15 08'15 09'15 10'15 11'15 12'15 Grand Total
COPQ $ KOPE / month $ KCapex Spend Major $ KCapex Spend Minor $ KAxalta way Savings $ K
PDCA
Brainstorming
Decision matrix
KPI1
2 4
3
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PROPRIETARYAXALTA COATING SYSTEMS
▪ 1.2.0 Project Selection Process
✓ 1.2.2. C – Why were these methods and /or tools used to select the project?
1. Project and team selection
Method/Tool Reason for use Method/Tool Reason for use
1. Key performance indicator (KPI) is a Management tool to monitor performance of Business related goals
2. This tool helped us to identify the metric to be improved
1. Brainstorming is a ideageneration tool
2. This tool helped us to identify core areas of action
1. PDCA tool is a performance measurement tool
2. This tool helped us to decide the Metric to be worked upon.
1. Many improvement ideas were generated during the brain storming session
2. This tool helped us to prioritise the project to be taken up
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PROPRIETARYAXALTA COATING SYSTEMS
Inventory management
GLOBAL GOALS
COST & QUALITY
Improving quality and the customer experienceFully execute on the Axalta Way to transform cost structureManage costs which do not benefit growth Continue to be a growth oriented, best in class commercial coatings supplier Achieve overall sales, profitability and growth plans
SITE GOALS
COST &
QUALITY
Customer complaints
Axalta way Savings
Plant Fix cost / Ltr
VFPDE
FFPDE
COPQ
OPE / month
Capex Spend Major
Capex Spend Minor
Axalta way Savings
▪ 1.2.0 Project Selection Process
✓ 1.2.3. A – What goals (organizational and / or local), performance measures, and / or strategies were the project expected to impact?
✓ 1.2.3. B – What was the relationship between the stated measures and perceived gap in 1.2.1?
1. Project and team selection
AREA PERCEIVED GAP
Cost of Poor Quality(K$)
Distribution(Transportation)
Customer end
Packaging damageLeakage issues
Product complaintService complaint
Inventory variation
1.2.3.A 1.2.3.B
STATED MEASURE
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PROPRIETARYAXALTA COATING SYSTEMS
▪ 1.2.0 Project Selection Process
✓ 1.2.3. C – What was the problem / project objective statement that expresses where the organization wanted to be at the end of the project?
1. Project and team selection
Problem Statement Goal Statement
In Year-2015, Organizational CoPQ was
high, i.e.; 0.43% of net sales. This resulted
in negative affect on COPQ target.30% reduction in COPQ losses by the end
of December 2016
Project Scope Business case / Financial ImpactIn Scope :- Loss on claims paid for India
❖Centralized database created for data collection to be referred
❖Read/write access right given to team members❖ Installed Minitab software in every team
member’s computer
Training on Logistics and distribution, 4W/2H/1C
Training on SFDC, ETQ platform
Training on QMS
Training on VSM, Control
impact matrix, 8D
Training to fill
identified gaps
1.3.3.A
1.3.3.B
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PROPRIETARYAXALTA COATING SYSTEMS
▪ 1.3.0 Team Selection and Preparation
✓ 1.3.4. A – What roles and expectations were determined ahead of the project?
✓ 1.3.4. B – What deadlines and deliverables did the team have to consider ahead of actually starting the project?
1. Project and team selection
Project Sponsor/champion
Project Leader
Functional Leader
Team member
Key roles/expectations
Oversees that process improvement projects are aligned to company’s
business goals and strategies
Ensure that right team members are selected for the project
Gets buy-in from other stake holders in the company
Approves any financials that are required for completing the project
Acts as a subject matter expert for the process and guides the project
team from time to time
One who will need to be kept informed on direction, findings
Green Belt resource responsible for driving the improvement project
Ensure data availability for analysis
Follow Project Management timelines and ensure timely completion of
each phase
Highlight / Call out any challenges that may arise in the project and
require guidance from project sponsor/champion
Project
Road Map
Generate possible solutions, Prioritize and Pilot
Solutions, Validate and justify solutions,
Implementation of Solution30.09.2016
Improve
Identify and prioritize possible
X’s (Cause and Effect Analysis),
Control and Impact Analysis, Data Collection Plan
15.04.2016
Measure
Identify and validate Vital X’s (Data / Process
Door Analysis), Root Cause Identification
30.06.2016
Analyze
Project Selection and Prioritization, Project
Charter (with approval) , SIPOC / Process Flow
31.03.2016
Define
Process control Analysis, Quality Net Saving calculations,
Monitoring and Response Plan,
Institutionalize and Sign-off
30.11.2016
Control/Verify
1.3.4.A1.3.4.B
Contribute with process knowledge and expertise during the project
Provide helping hand to Green belt for data gathering and analysis
Contribute during brainstorming sessions in identifying causes and
solution gathering
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▪ 1.3.0 Team Selection and Preparation
✓ 1.3.4. C – Before the project started, what team routines, including communication, were established?
Centralized database created for data collection
Team members to update all relevant documents
required for project completion and documentation
MOMs to be circulated to all project stakeholders
for every meeting
All key decisions / changes to be signed off by
Sponsor / Champion via e-mail
Project
Schedule
Project
database
Communic
ation
Gantt chart prepared for the team to work with
deadlines
Weekly meeting schedules decided for the team
In the event of any change in schedule project
leader to inform team members
1. Project and team selection
Project Gantt Chart
Team Key Routines and
Communication plan
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PROPRIETARYAXALTA COATING SYSTEMS
2. Current Situation and Root Cause / Improvement Opportunity Analysis
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PROPRIETARYAXALTA COATING SYSTEMS
▪ 2.1.0 Key Measures Expected of the Project
✓ 2.1.1. A – What specific goals and / or measures was the team trying to achieve with the project?
✓ 2.1.1. B – What additional potential benefits, other than the specific goals and / or measures, was the project expected to impact?
2. Current Situation and Root Cause / Improvement Opportunity Analysis
Project Goal Statement
30% reduction in COPQ losses by December 2016 against year 2015
Voice of Customer(VOC)
• Improvement in Product and
Service quality
• Reduce inventory variation
• Reduce in-transit damages
• Reduce Product and service
complaints
Project impact areas
End customerImprovement in Product and Service quality
Projected Improvements
Reduce inventory variation
Reduce in-transit damages
Inventory
Material shipment
Additional Benefits
Real time information on materials.
Improve productivity and speed up data collection process
Streamline WH management system
Elimination of NVA and minimization of wastages
Elimination of misloading cases
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PROPRIETARYAXALTA COATING SYSTEMS
▪ 2.2.0 Possible Root Causes / Improvement Opportunities
✓ 2.2.1. A – What methods and / or tools were used to identify possible root causes / improvement opportunities?
✓ 2.2.1. B – Why were these methods and / or tools selected (to identify possible root causes / improvement opportunities?
✓ 2.2.1. C – How was the team prepared to use these methods and / or tools t (to identify possible root causes / improvement opportunities)?
SIPOC VALUE STREAM MAPPING BRAIN STORMING FISH-BONE
1. This tool helped us to identify project boundaries, and identify all the elements within the value chain
1. This tool helped to perform detailed process mapping and to pin point the areas of concern in the value stream
1. Brainstorming is a idea generation tool
2. This tool helped us to identify core areas of action
1. visualization tool for categorizing the potential causes of a problem in order to identify its root causes
The team members had the knowledge of using brain storming, SIPOC, Fishbone diagram toolREFER 1.3.2.B
2. Current Situation and Root Cause / Improvement Opportunity Analysis
2.2.1.A
2.2.1.B
2.2.1.C
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PROPRIETARYAXALTA COATING SYSTEMS
2. Current Situation and Root Cause / Improvement Opportunity Analysis
Inventory variation
Calibration of radarAccounting of sticking lossesWeight variation in weigh scaleCounting errorsData punching errors during stock countMultiple codes for single materialDifference in UoM
Products and service complaints
Rework cost Field credits
LeakagePoor gumming of labelsRustingShort- receiptWrong MRPWrong batch no. dispatchedWrong shelf life printedMixing of cans
In-transit damage and leakageExpired materialObsolete productCustomer returns
Short supplyIn-transit damage and leakage
SIPOCIdentification of project
boundaries
▪ 2.2.0 Possible Root Causes / Improvement Opportunities
✓ 2.2.2. A – What data was generated and how was the data analyzed to identify the possible root cause / improvement opportunities?
✓ 2.2.2. B – What were the possible root cause / improvement opportunities? 2.2.2.A
2.2.2.B
BRAIN STORMINGTo identify core areas of action
VALUE STREAM MAPPINGIdentification of areas of
concern
CAUSE & EFFECTS ANALYSISCategorization of all possible
reasons
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PROPRIETARYAXALTA COATING SYSTEMS
▪ 2.3.0 Final Root Causes / Improvement Opportunities
✓ 2.3.1. A – What methods and / or tools were used to identify the final root cause(s) / improvement opportunities?
✓ 2.3.1. B – Why were these methods and / or tools selected to identify the final root causes(s) / improvement opportunities?
This tool helped us to identify core areas of action
This is a prioritization tool that is used to prioritize causes which can be controlled
To narrow a large list of possibilities to a small list
visualization tool for categorizing the potential causes of a
problem in order to identify its root causes
Walking around to look for wastes and opportunities
Pareto Analysis, identify and list problems and their causes. Then
score each problem and group them together by their cause
To validate the root cause
8D – To identify, correct, and eliminate recurring problems
5Why – To peel away the layers of symptoms which can lead to the
root cause of a problem
2. Current Situation and Root Cause / Improvement Opportunity Analysis
Product service
complait
Inventory variation
Field credits
Rework cost
CoPQ
Brain storming
8-D, 4W/2H/1
C
Multi-voting
Control impact matrix
Pareto
Gemba walks
Ishikawa
Brain stormin
g
Hypothesis
testing
8-D, 4W/2H/
1C
Multi-voting
Control impact matrix
Pareto
Gemba walks
Ishikawa
Effect – Cost of poor quality
Contributing areas
Methods/tools used
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▪ 2.3.0 Final Root Causes / Improvement Opportunities
✓ 2.3.1. C – How was the team prepared to use these methods and / or tools to identify the final root causes / improvement opportunities?
2. Current Situation and Root Cause / Improvement Opportunity Analysis
VSM 8D
4W/2H/1CControl impact
matrix
Trainings
Refer 1.3.3.A
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PROPRIETARYAXALTA COATING SYSTEMS
▪ 2.3.0 Final Root Causes / Improvement Opportunities
✓ 2.3.2. A – What data was generated and how was the data analyzed in order to identify the final root causes / improvement opportunities?
✓ 2.3.2. B – What are specific examples of data analysis that led to the final root cause?
2. Current Situation and Root Cause / Improvement Opportunity Analysis
Inventory variation
1. Write-off data through ERP
2. Write-on data through ERP
2.3.2.A
GL Code Particulars 01'15 02'15 03'15 04'15 05'15 06'15 07'15 08'15 09'15 10'15 11'15 12'15 Grand Total
▪ 2.3.0 Final Root Causes / Improvement Opportunities ✓ 2.3.2. C – What was(were) the final root causes / improvement opportunities?
2. Current Situation and Root Cause / Improvement Opportunity Analysis
Impact/Control Matrix
High ImpactLow Impact
Co
ntr
olla
ble
Un
con
tro
llab
le
Vital Xs’
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PROPRIETARYAXALTA COATING SYSTEMS
▪ 2.3.0 Final Root Causes / Improvement Opportunities
✓ 2.3.3. A – How was the final root cause / improvement opportunities validated?
2. Current Situation and Root Cause / Improvement Opportunity Analysis
S.No. Vital ‘X’ Validation method
1 Defects in packaging material
• Dimensional analysis of tins for leakage• Stability study for leakage• Solubility test of seaming compound for
leakage• Humidity test for rusting• Salt spray test for rusting• Natural weatherometer study for rusting• Rolling ball tack test for poor gumming
2 Gassing tendency in products
• Lab test of Solvent by using Karl Fischer instrument
• Sampling inspection in lots• Change solvent combination• Replacement of formulation ingredients• Trial in different shaped cans• Trial with cans of same design from another
supplier• Review the Batch card parameter with
Standard best practice.
S.No. Vital ‘X’ Validation method
3 Dust issue in products
• Residue analysis
4 Look-a-like material
• Pareto of internal quality incidents
5 Bulk storage
variance
• Historical data
6 Material accounting and stock taking errors
• Historical data
7 Material Handling damages
• % of credit notes against sales value
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PROPRIETARYAXALTA COATING SYSTEMS
▪ 2.3.0 Final Root Causes / Improvement Opportunities
✓ 2.3.3. B – What evidence showed that the final root causes / improvement opportunities were validated prior to solution development?
2. Current Situation and Root Cause / Improvement Opportunity Analysis
S.No. Vital ‘X’ Validation method Evidence
1 Defects in packaging material
• Humidity test for rusting• Salt spray test for rusting• Natural weatherometer
study for rusting• Rolling ball tack test for poor
gumming
1 Defects in packaging material
• Dimensional analysis of tins for leakage
• 1 week Stability study for leakage
• Solubility test of seaming compound for leakage Due to less curling thickness the
leakage is observed on the conipail Seaming compound
solubility test
Humidity test for rusting test
Salt spray test for rusting test
Rolling ball tack test for poor gumming
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PROPRIETARYAXALTA COATING SYSTEMS
▪ 2.3.0 Final Root Causes / Improvement Opportunities
✓ 2.3.3. B – What evidence showed that the final root causes / improvement opportunities were validated prior to solution development?
2. Current Situation and Root Cause / Improvement Opportunity Analysis
S.No. Vital ‘X’ Validation method Evidence
2 Gassing tendency in products
• Lab test of Solvent & resin by using Karl Fischer instrument
2 Gassing tendency in products
• DOE for solvent combination by replacement of formulation ingredients
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▪ 2.3.0 Final Root Causes / Improvement Opportunities
✓ 2.3.3. B – What evidence showed that the final root causes / improvement opportunities were validated prior to solution development?
2. Current Situation and Root Cause / Improvement Opportunity Analysis
S.No. Vital ‘X’ Validation method Evidence
2 Gassing tendency in products
• Trial in different shaped cans• Trial with cans of same
design from another supplier
2 Gassing tendency in products
• Review the Batch card parameter with Standard best practice.
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PROPRIETARYAXALTA COATING SYSTEMS
▪ 2.3.0 Final Root Causes / Improvement Opportunities
✓ 2.3.3. B – What evidence showed that the final root causes / improvement opportunities were validated prior to solution development?
2. Current Situation and Root Cause / Improvement Opportunity Analysis
S.No. Vital ‘X’ Validation method Evidence
3 Dust issue in products
• Residue analysis • 0.6mg residue observed from 17 kg material after filtration in one of the products
4 Look-a-like material • Pareto of internal qualityincidents
QIR analysis shows human error as major contributor in look-a-like cases
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PROPRIETARYAXALTA COATING SYSTEMS
▪ 2.3.0 Final Root Causes / Improvement Opportunities
✓ 2.3.3. B – What evidence showed that the final root causes / improvement opportunities were validated prior to solution development?
2. Current Situation and Root Cause / Improvement Opportunity Analysis
S.No. Vital ‘X’ Validation method Evidence
5
6
Bulk storage
variance
Material accounting
and stock taking
errors
• Historical data • HMI stock vs booked stock
7 Material Handling damages
• % of credit notes against sales value
RESINSPIGMENTISOCYANATE
600
500
400
300
200
100
0
CATEGORY 2
QT
Y
Boxplot of QTY
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PROPRIETARYAXALTA COATING SYSTEMS
▪ 2.4.0 Project Management Update
✓ 2.4.1. A – How was the correctness of the initial project scope, deliverables, and timing confirmed (or, what changes were made?)
2. Current Situation and Root Cause / Improvement Opportunity Analysis
Project scope –No change
Project deliverables –No change
Timing –No change in Planned time line
Defects & Metrics Project Team
Operational Definition : Costs associated with losses due to claims paid on account of in-transit damage of finished goods, inventory mismatch, damage of packaging material, and poor product quality.
Project Champion:
Sandeep Batwe
Process Owners: Santosh Tipnis, Atul Upadhye
Defect Metric (CTQ) measurement:CoPQ >0.20% of net salesCurrent baseline : CoPQ = 0.43% Current baseline period: 2015
Core Team Members:
Hardik Oza, Amit Desai, Ajinkya Joshi, Viral Mehta, Prasad Menon, Hiren Bhatt, Vijay Parashar, Santosh Shatpalkar
Milestones Approval
Phase Date Planned Date Completed Process owner's name and signature Santosh Tipnis
Define 31.03.2016 31.03.2016
Measure 15.04.2016 15.04.2016 Champion's name and signature Sandeep Batwe
✓ 2.4.1. C – What stakeholder resistance was identified and / or addressed in this phase of the project?
2. Current Situation and Root Cause / Improvement Opportunity Analysis
Project Sponsor/champion Project Leader Team Members Functional leaders
Stake holders
Communication channels
No resistance No resistance No resistance No resistance
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PROPRIETARYAXALTA COATING SYSTEMS
▪ 2.4.0 Project Management Update
✓ 2.4.1. D – How was the appropriateness of the initial team membership and management routines confirmed (or, what changes were made)?
2. Current Situation and Root Cause / Improvement Opportunity Analysis
Project Team
• Team selection based on SIPOC analysis• Project deadlines planned by the project
team members
Management schedule
Confirmation of appropriateness of the Project team
• Routine checks done on planned dates v/s actual implementation dates
• Feedback and support received from Sponsor / Champion
• Minutes of meeting sharing after each meeting
• No changes • No changes
Changes proposed/made
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3. Solution / Improvement Development
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▪ 3.1.0 Possible Solutions or Improvements
✓ 3.1.1. A – What methods and / or tools were used to identify the possible solutions / improvements?
✓ 3.1.1. B – Why were these methods and / or tools selected?
3. Solution / Improvement Development
This tool helped us to identify core areas of action
Compared with the best practice
5Why – To peel away the layers of symptoms which can lead to
the root cause of a problem
Walking around to look for wastes and opportunities
Subject Matter Expert To validate the root cause
8D – To identify, correct, and eliminate recurring problems
Brain storming
DOE
8-D
Benchmarking
SME
Process audit
Why why analysis
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PROPRIETARYAXALTA COATING SYSTEMS
▪ 3.1.0 Possible Solutions or Improvements
✓ 3.1.1. C – How was the team prepared to use these methods and / or tools?
3. Solution / Improvement Development
Brain storming
• The team had the subject knowledge
• Covered during Yellow belt training for 1 hour
• Consultation from Subject matter experts
• The team had the subject knowledge
• Training conducted for 2 days, 2 hours each
• Training conducted on 8D for 1 day, 2 hours
• Training conducted for 2 hours
DOE
8-DBench
marking
SMEProcess
auditWhy why analysis
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PROPRIETARYAXALTA COATING SYSTEMS
1. Process audit findings from supplier process audit2. Internal quality test specifications for packing material3. Air leak test data at supplier end4. Material gauge data5. DOE analysis on can design6. Calibration check for radar7. WPL data in HMI8. Losses due to Palletization process 9. Inventory analysis data for sister plants10. Products and service complaints data from customer
▪ 3.1.0 Possible Solutions or Improvements
✓ 3.1.2. A – What data was generated and how was it analyzed?
3. Solution / Improvement Development
DoEIshikawa
Brain storming
SMEProcess audit
Benchmarking
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PROPRIETARYAXALTA COATING SYSTEMS
▪ 3.1.0 Possible Solutions or Improvements
✓ 3.1.2. B – What are the possible solutions / improvements?
3. Solution / Improvement Development
S.No. Vital ‘X’ POSSIBLE SOLUTIONS
1 Defects in packaging material
1. Process improvement at existing supplier2. Identification of alternate supplier3. Internal quality testing for packing material4. Manual seaming process replaced with automated seaming process5. Improving in welding process at supplier end (ex. Welding rollers changed, thyristor fire card
changed)6. New overlap welder machine with double wire system, voltage stabilizer, fluctuation arrester,
chiller installation at supplier end7. Introduction of multi-head water leak tester in place of air leak tester at supplier end8. Start using VCI (Volatile Corrosion Inhibitor) paper, silica gel, Desiccant bags to avoid rusting of
tins9. Change in Gauge of 5 Ltr. & 4 Ltr. Rect. Tin Body from 0.25 mm. to 0.26 mm, & Top & Bottom
from 0.25 mm. to 0.27 mm
2 Gassing tendency in products
1. Can design modification2. Product formula upgradation3. Design the new inner cap with air vent provision, and leakage prevention
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▪ 3.1.0 Possible Solutions or Improvements
✓ 3.1.2. B – What are the possible solutions / improvements?
3. Solution / Improvement Development
S.No. Vital ‘X’ POSSIBLE SOLUTIONS
3 Dust issue in products 1. 20 ltr lacquered drums replaced by 20 ltr conipail
2. RM quality improvement, 3. Inspection plan revision
4. Modification in paint mixing room with appropriate cartridge filter at Customer’s end
4 Look-a-like material 1. Stamping on inter-company look-a-like materials2. Colour coding on external vendor look-a-like barrels
5 Bulk storage variance 1. Calibration check for radar
2. Correction of WPL data in HMI
3. Pigging system implementation
6 Material accounting and stock taking errors
1. Bar coding of materials
2. WMS implementation & automation
7 Material Handling damages
1. Palletization process improvement, 2. Material dispatch in Pallet with proper shrink wrap
2. material handling training to W.H staff & transporter labours
3. Improvement in packaging quality
43
PROPRIETARYAXALTA COATING SYSTEMS
▪ 3.1.0 Possible Solutions or Improvements
✓ 3.1.2. C – What evidence showed that the solutions / improvements identified were possible instead of final?
3. Solution / Improvement Development
1. Process improvement at existing supplier2. Identification of alternate supplier3. Internal quality testing for packing material4. Can design modification5. Product formula revision6. Process change7. Design the new inner cap with air vent provision, and leakage prevention8. 20 ltr lacquered drums replaced by 20ltr conipail9. RM quality to be improved10. Inspection plan revision11. Modification in paint mixing room with appropriate cartridge filter at Customer’s end12. Stamping on inter-company look-a-like materials13. Colour coding on external vendor look-a-like barrels14. Calibration check for radar15. Correction of WPL data in HMI16. Pigging system implementation17. Bar coding of materials18. WMS implementation & automation19. Palletization process improvement20. Material to be dispatch in Pallet with proper shrink wrap21. Material handling training to W.H staff & transporter labours22. Improvement in packaging quality
EXAMPLE
44
23
PROPRIETARYAXALTA COATING SYSTEMS
▪ 3.2.0 Final Solutions or Improvements
✓ 3.2.1. A – What methods and / or tools were used to identify the final solutions / improvements?
✓ 3.2.1. B – Why were these methods and/or tools selected?
✓ 3.2.1. C – How was the team prepared to use these methods and / or tools?
3. Solution / Improvement Development
This tool helped us to identify core areas of
action
Compared with the best practice
Decision matrix tool to rate the solutions
The tool was used to identify correct solution
through various lab trials
Subject Matter Expert
Brain storming
Benchmarking
SME DOE
Pugh matrix
Tool Team competency
Brain storming • Team competent
Pugh matrix • Training conducted for 2 days, 2 hours each day
Design of Experiments (DOE)
• Training conducted for 2 days, 4 hours each day
45
PROPRIETARYAXALTA COATING SYSTEMS
▪ 3.2.0 Final Solutions or Improvements
✓ 3.2.2. A – How were the methods or tools used to determine the final solutions? 3.2.2. B – What was the final solution?
3. Solution / Improvement Development
Vital ‘X’ Final Solution Tool/method How the tool was used
Defects in packaging
material
1. Process improvement at existing supplier for leakage2. VCI paper, Desiccant bags, silica gel pouch
Action –VCI paper, Desiccant bags, silica gel pouch implementation
Tool – Brain stormingFocused group discussion on rusting issueTool – SMEPackaging experts invited for solution provisionTool – DOELab trials like humidity test, Salt spray test and weatherometer study conducted to test the sample. Based on the trial results the action decidedFinal decision based on Cost feasibility and speed of implementation
Gassing tendency in products
1. Design the new inner cap with air vent provision, and leakage prevention
Dust issue in products 1. 20 ltr lacquered drums replaced by 20 ltr conipail
2. Modification in paint mixing room with appropriate cartridge filter at Customer’s end
Look-a-like material 1. Stamping on inter-company look-a-like materials2. Colour coding on external vendor look-a-like barrels
Bulk storage variance 1. Calibration check for Radar2. Correction of WPL data in HMI
Material accounting and stock taking errors
1. Bar coding of materials2. WMS implementation & automation
Material Handling damages
1. Palletization process improvement2. Material handling training to WH staff & transporter
labours
46
24
PROPRIETARYAXALTA COATING SYSTEMS
▪ 3.2.0 Final Solutions or Improvements
✓ 3.2.3. A – How were the final solutions validated?
✓ 3.2.3. B – What evidence showed that validation was performed prior to implementation?
3. Solution / Improvement Development
Vital ‘X’Defects in Packaging material
Validation of solutionProcess improvement at Supplier end
Defects in packaging material –Leakage issue
Successful trials conducted to improve welding process at Supplier end
Successful trials conducted on seaming improvement at Supplier end
BeforeInconsistent Rubber seaming
AfterConsistent Rubber seaming
47
PROPRIETARYAXALTA COATING SYSTEMS
▪ 3.2.0 Final Solutions or Improvements
✓ 3.2.3. A – How were the final solutions validated?
✓ 3.2.3. B – What evidence showed that validation was performed prior to implementation?
3. Solution / Improvement Development
Vital ‘X’Defects in Packaging material
Validation of solutionVCI paper, Desiccant bags, silica gel pouch implementation for rusting issue
Defects in packaging material –Rusting issue
Took two can samples
Packed both cans in Multiguard 50 & kept in Humidity Chamber for testing
Physical observation after completion of 12 cycles
Above result clearly show & indicates that there are no sign of corrosion on both component. Materials are passing in
corrosion test
48
25
PROPRIETARYAXALTA COATING SYSTEMS
▪ 3.2.0 Final Solutions or Improvements
✓ 3.2.3. A – How were the final solutions validated?
✓ 3.2.3. B – What evidence showed that validation was performed prior to implementation?
3. Solution / Improvement Development
Vital ‘X’Gassing tendency in products
Validation of solutionDesign the new inner cap with air vent provision, and leakage prevention
Gassing tendency in products
Old inner cap design
New inner cap design with air vent designed
Improved inner cap design
49
PROPRIETARYAXALTA COATING SYSTEMS
▪ 3.2.0 Final Solutions or Improvements
✓ 3.2.3. A – How were the final solutions validated?
✓ 3.2.3. B – What evidence showed that validation was performed prior to implementation?
3. Solution / Improvement Development
Vital ‘X’Dust issue in products
Validation of solution1. 20 ltr lacquered drums replaced by 20 ltr conipail2. Modification in paint mixing room with appropriate cartridge filter at Customer’s end
Dust issue in productsBased on microscopic analysis of residue collected from 20 ltr internal lacquered drum, resin flakes observed in the residue. Also earlier method of paint mixing at customer end resulted into peeling off of internal lacquer. Hence we switched to 20 ltr open mouth tin plated buckets in addition to modification in paint kitchen at customer end
50
26
PROPRIETARYAXALTA COATING SYSTEMS
▪ 3.2.0 Final Solutions or Improvements
✓ 3.2.3. A – How were the final solutions validated?
✓ 3.2.3. B – What evidence showed that validation was performed prior to implementation?
3. Solution / Improvement Development
Vital ‘X’Look-a-like material
Validation of solution1. Stamping on inter-company look-a-like materials2. Colour coding on external vendor look-a-like barrels
Look-a-like materialVisual management implementation for barrel identificationValidation based on trials conducted on specific look-a-like
material
51
PROPRIETARYAXALTA COATING SYSTEMS
▪ 3.2.0 Final Solutions or Improvements
✓ 3.2.3. A – How were the final solutions validated?
✓ 3.2.3. B – What evidence showed that validation was performed prior to implementation?
3. Solution / Improvement Development
Vital ‘X’Material accounting and stock taking errors
Validation of solution1. Bar coding of materials2. WMS implementation & automation
Material accounting and stock taking errors
▪ Automatic system (Bar coding) for materials handling in all production areas (Logistics and Factory)
▪ Use of wireless barcode scanners that collect all information
▪ Integration of bar coding system with ERP and WMS
▪ Validation based on adoption of best practice followed at Axalta China Plant
52
27
PROPRIETARYAXALTA COATING SYSTEMS
▪ 3.2.0 Final Solutions or Improvements
✓ 3.2.3. A – How were the final solutions validated?
✓ 3.2.3. B – What evidence showed that validation was performed prior to implementation?
3. Solution / Improvement Development
Vital ‘X’Material Handling damages
Validation of solution1. Palletization process improvement2. material handling training to W.H staff & transporter labours
Material Handling damagesValidation – New palletization and packing process trials conducted. Based on feedback from customer end, the process was validated
53
PROPRIETARYAXALTA COATING SYSTEMS
▪ 3.2.0 Final Solutions or Improvements
✓ 3.2.4. A – What additional potential benefits were anticipated from the final solutions?
✓ 3.2.4. B – Were the additional benefits anticipated prior to implementation?
3. Solution / Improvement Development
BAR CODING SOLUTION• Real time data generated • NVA reduction like searching time• Elimination of misloading incidences
PRODUCT & PACKAGING DEFECTS• Supplier capability improvement• Customer delight• Elimination of near miss incidences• Cycle Time improvement
All additional benefits were anticipated prior
to implementation
54
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PROPRIETARYAXALTA COATING SYSTEMS
▪ 3.2.0 Final Solutions or Improvements
✓ 3.2.5. A – What data was generated and analyzed to justify implementation?
✓ 3.2.5. B – What evidence showed that justification was performed prior to implementation?
3. Solution / Improvement Development
Vital ‘X’ Final Solution Justification evidence
Defects in packaging
material
1. Process improvement at existing supplier for leakage
2. VCI paper, Desiccant bags, silica gel pouch implementation for rusting issue
• Improvement in seaming and welding process after successful trials
Without VCI paper With VCI paper
55
PROPRIETARYAXALTA COATING SYSTEMS
▪ 3.2.0 Final Solutions or Improvements
✓ 3.2.5. A – What data was generated and analyzed to justify implementation?
✓ 3.2.5. B – What evidence showed that justification was performed prior to implementation?
3. Solution / Improvement Development
Vital ‘X’ Final Solution Justification evidence
Gassing tendency in products
1. Design the new inner cap with air vent provision, and leakage prevention
• No bulging observed during accelerated study after modification in inner vent
Dust issue in products 1. 20 ltr lacquered drums replaced by 20 ltr conipail
2. Modification in paint mixing room with appropriate cartridge filter at Customer’s end
• Trials conducted at customer end with improved tins and no dust observed. Refer slide - 50
Before - Bulging Before – Good can
56
29
PROPRIETARYAXALTA COATING SYSTEMS
▪ 3.2.0 Final Solutions or Improvements
✓ 3.2.5. A – What data was generated and analyzed to justify implementation?
✓ 3.2.5. B – What evidence showed that justification was performed prior to implementation?
3. Solution / Improvement Development
Vital ‘X’ Final Solution Justification evidence
Look-a-like material 1. Stamping on inter-company look-a-like materials
2. Colour coding on external vendor look-a-like barrels
• Visual management improvement
Bulk storage variance 1. Calibration check for radar
2. Correction of WPL data in HMI
• Calibration of radar resulted in improved radar readings. 10 trials conducted
Before After
57
PROPRIETARYAXALTA COATING SYSTEMS
▪ 3.2.0 Final Solutions or Improvements
✓ 3.2.5. A – What data was generated and analyzed to justify implementation?
✓ 3.2.5. B – What evidence showed that justification was performed prior to implementation?
3. Solution / Improvement Development
Vital ‘X’ Final Solution Justification evidence
Material accounting and stock taking errors
1. Bar coding of materials
2. WMS implementation & automation
• Formula ingredients bar codes defined and incorporated in the batch card formula
• Best practice adoption from other Axalta site
8681
94 93
0102030405060708090
100
Q1 2016 Q2 2016 Q3 2016 Q4 2016
IRA (%)
58
30
PROPRIETARYAXALTA COATING SYSTEMS
▪ 3.2.0 Final Solutions or Improvements
✓ 3.2.5. A – What data was generated and analyzed to justify implementation?
✓ 3.2.5. B – What evidence showed that justification was performed prior to implementation?
3. Solution / Improvement Development
Vital ‘X’ Final Solution Justification evidence
Material Handling damages
1. Palletization process improvement
2. material handling training to W.H staff & transporter labours
• Pilot study was conducted in North region. The study results were found suitable
59
PROPRIETARYAXALTA COATING SYSTEMS
▪ 3.3.0 Project Management Update
✓ 3.3.1. A – How was the correctness of the initial or updated project scope, deliverables and timing confirmed?
3. Solution / Improvement Development
Project scope
Project Deliverable
Project Timeline
No change
No change
Analyze phase – Toll gate review got delayed by 10 days
Improve phase – Certain actions identified during analyze phase required capital investment as well as visits made to sister plants to leverage the learnings for feasibility study
For the rest - Scope Confirmed No change Identified
60
31
PROPRIETARYAXALTA COATING SYSTEMS
▪ 3.3.0 Project Management Update
✓ 3.3.1. B – How were the stakeholders involved and communicated with during the solution phase of the project?
3. Solution / Improvement Development
Project Sponsor/champion Project Leader Team Members Functional leaders
Stake holders
Communication channels
Obtaining approval for solution
Weekly team meetings or as per need basis
Weekly team meetings or as per need basis
Participated in decision making and
Involvement in various stages of the project through exchange of ideas, feasibility of
options
61
PROPRIETARYAXALTA COATING SYSTEMS
▪ 3.3.0 Project Management Update
✓ 3.3.1. C – What stakeholder resistance was identified / addressed in this phase of the project?
3. Solution / Improvement Development
Project Sponsor/champion Project Leader Team Members Functional leaders
Stake holders
Communication channels
No resistance No resistance No resistance
Resistance observed wrt timing of trials
from the shop floor personnel, which was
resolved amicably
62
32
PROPRIETARYAXALTA COATING SYSTEMS
▪ 3.3.0 Project Management Update
✓ 3.3.1. D – How was the appropriateness of the initial or updated team membership and management routines confirmed (or, what changes were made)?
3. Solution / Improvement Development
Project Sponsor/champion Project Leader Team Members Functional leaders
Stake holders
Routine management
Monthly review, no changes made
Weekly meetings to review progress, no
changes made
Weekly meetings, no changes made
Part of the CFT & used this forum for communication of
concerns, ideas, etc.
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PROPRIETARYAXALTA COATING SYSTEMS
4. Implementation and Results Verification
64
33
PROPRIETARYAXALTA COATING SYSTEMS
▪ 4.1.0 Stakeholder Considerations in Implementation
✓ 4.1.1. A – How were stakeholders involved in planning the solution / improvement implementation?
✓ 4.1.1. B – How were stakeholders involved in implementing the solution / improvement?
✓
4. Implementation and Results Verification
S.No. Stake holders Planning the solution Contribution in implementing the solution
1 Project sponsor
Ensured availability of all resources on scheduled meeting dates
Sponsor / Champion: Change agents to make the improvements a part of the process
2 Project Team Project Lead ensured required stakeholder’s presence while planning the solutions.Functional leaders/SMEs contributed with their knowledge and experience on planning solutions
Project Lead: Took the onus of training the entire team on the new procedures Process SME’s built new process flows for the revised procedures
3 Technology Team
Helped with identifying the areas in the process that can be automated Helped in troubleshooting various automation options
Built the automation for the process Technical team helped us fixed bugs that were identified in the pilot phase They also supported the team with initial training on using the new automation
5 Knowledge Management Team
Helped in creating training need analysis based on proposed solutions
Worked with the project lead and SMEs in updating the SOPs, Process Checklists, process FMEA, Process Training Plans and assessments Carried refresher trainings and conducted post training assessments for the process team 65
PROPRIETARYAXALTA COATING SYSTEMS
▪ 4.1.0 Stakeholder Considerations in Implementation
✓ 4.1.2. A – What was done to anticipate resistance before it occurred?
4. Implementation and Results Verification
Stake holders
Project Sponsor/champion
Project Leader
Functional Leader/SME
Team member
Gate reviews were conducted with project Sponsor / Champion
Meeting with identified stakeholders on various points of concern from time to time
Functional leaders were involved in the decision making process
Internal team discussions followed by consulting with functional leaders
Actions to avoid resistance
66
34
PROPRIETARYAXALTA COATING SYSTEMS
▪ 4.1.0 Stakeholder Considerations in Implementation
✓ 4.1.2. B – What types of resistance were actually encountered during the course of solution / improvement implementation?
✓ 4.1.2. C – How was the actual resistance identified?
4. Implementation and Results Verification
Final Solution Resistance identified
1. Process improvement at existing supplier for leakage2. VCI paper, Desiccant bags, silica gel pouch
implementation for rusting issue
1. Resistance from supplier wrt design change2. Resistance from shop floor for increase in additional process step
1. Design the new inner cap with air vent provision, and leakage prevention
1. Resistance from inner cap supplier to change the design
1. 20 Ltr lacquered drums replaced by 20 ltr conipail2. Modification in paint mixing room with appropriate
cartridge filter at Customer’s end
1. No resistance2. Resistance from customer to make changes in his paint kitchen
1. Stamping on inter-company look-a-like materials2. Colour coding on external vendor look-a-like barrels
1. No resistance2. No resistance
1. Calibration check for radar2. Correction of WPL data in HMI
1. Radar agency not agreeing for periodical calibrations2. No resistance
1. Bar coding of materials2. WMS implementation & automation
1. No resistance2. No resistance
1. Palletization process improvement2. MH training to WH staff & transporter labours
1. Resistance from warehouse2. No resistance
67
PROPRIETARYAXALTA COATING SYSTEMS
▪ 4.1.0 Stakeholder Considerations in Implementation
✓ 4.1.3. A – How was the actual resistance addressed?
✓ 4.1.3. B – How did the team know it was successful in addressing the resistance?
4. Implementation and Results Verification
Final Solution Resistance identified Resistance addressed
1. Process improvement at existing supplier for leakage
2. VCI paper, Desiccant bags, silica gel pouch implementation for rusting issue
1. Resistance from supplier wrt design change
2. Resistance from shop floor for increase in additional process step
1. Meeting with supplier, explained the concerns,negotiations worked
2. Shop floor team convinced due to negligible impact on cycle time
1. Design the new inner cap with air vent provision, and leakage prevention
1. Resistance from inner cap supplier to change the design
1. Alternate vendor development
1. 20 ltr lacquered drums replaced by 20 ltr conipail
2. Modification in paint mixing room with appropriate cartridge filter at Customer’s end
1. No resistance
2. Resistance fro customer to make changes in his paint kitchen
1. Nil
2. Shared the benefits of modification in the paint kitchen to reduce the rework activities at customer’s end
68
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PROPRIETARYAXALTA COATING SYSTEMS
▪ 4.1.0 Stakeholder Considerations in Implementation
✓ 4.1.3. A – How was the actual resistance addressed?
✓ 4.1.3. B – How did the team know it was successful in addressing the resistance?
4. Implementation and Results Verification
Final Solution Resistance identified Resistance addressed
1. Stamping on inter-company look-a-likematerials
2. Colour coding on external vendor look-a-like barrels
1. No resistance2. No resistance
1. Nil2. Nil
1. Calibration check for radar
2. Correction of WPL data in HMI
1. Radar agency not agreeing for periodical calibrations
2. No resistance
1. Radar agency was convinced and negotiations done
2. Nil
1. Bar coding of materials
2. WMS implementation & automation
1. No resistance
2. No resistance
1. Nil
2. Nil
1. Palletization process improvement
2. material handling training to W.H staff & transporter labours
1. Resistance from warehouse due to additional tasks
2. No resistance
1. Team convinced
2. Nil
Once the resistance issues were
addressed, the suppliers, teams
were motivated, and the identified actions
were completed successfully
69
PROPRIETARYAXALTA COATING SYSTEMS
▪ 4.1.0 Stakeholder Considerations in Implementation
✓ 4.1.4. A – What was the evidence of stakeholder group buy-in?
✓ 4.1.4. B – What evidence showed that buy-in was obtained prior to implementation?
4. Implementation and Results Verification
70
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PROPRIETARYAXALTA COATING SYSTEMS
▪ 4.2.0 Solution / Improvement Implementation
✓ 4.2.1. A – What processes or systems were changed or created to implement the solution / improvement?
✓ 4.2.1. B – What systems were changed or created to measure and manage the performance of the implementation?
4. Implementation and Results Verification
Final Solution Process change/created Process management
1. Process improvement at existing supplier for leakage
2. VCI paper, Desiccant bags, silica gel pouch implementation for rusting issue
1. Leak test process changed from air type to water type. Change in tin specification (0.25 to 0.26)
2. New process introduction of inserting VCI papers during filling operation.
1. Supplier audits, Standard operating procedures (SOP), control plan updation
2. SOP creation, BOM updation, PFMEA updation
1. Design the new inner cap with air vent provision, and leakage prevention
1. Packing material design change 1. New material code generated in SAP through Management of Change (MOC) process
1. 20 ltr lacquered drums replaced by 20 ltr conipail
2. Modification in paint mixing room with appropriate cartridge filter at Customer’s end
1. Packing material design change
2. Process improvement at customer end
1. New material code generated in SAP through Management of Change (MOC) process
2. Verification by technical service representative at customer’s end
71
PROPRIETARYAXALTA COATING SYSTEMS
▪ 4.2.0 Solution / Improvement Implementation
✓ 4.2.1. A – What processes or systems were changed or created to implement the solution / improvement?
✓ 4.2.1. B – What systems were changed or created to measure and manage the performance of the implementation?
4. Implementation and Results Verification
Final Solution Process change/created Process management
1. Stamping on inter-company look-a-like materials
2. Colour coding on external vendor look-a-like barrels
1. Introduction of stamping for look-a-like material (process change)
2. Colour coded drums from supplier (visual management)
1. Standard operating procedure2. Inspection plan updation
1. Calibration check for radar
2. Correction of WPL data in HMI
1. New process introduction
2. Process improvement
1. Standard operating procedure
2. Standard operating procedure
1. Bar coding of materials
2. WMS implementation & automation
1. New process introduction
2. ERP Process improvement
1. Management of change – technology
2. Standard operating procedure
1. Palletization process improvement
1. Process improvement 1. Standard operating procedure
72
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PROPRIETARYAXALTA COATING SYSTEMS
▪ 4.3.0 Project Results
✓ 4.3.1. A – What were the results?
✓ 4.3.1. B – How did the results compare to the specific project goals / measures from item 2.1.1?
4. Implementation and Results Verification
17
1210 10
0
5
10
15
20
Product Service
Complaint analysis-Categorywise
Year-2015 Year-2016
194,195
92643
0.43%
0.20%
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
0
50000
100000
150000
200000
250000
300000
2015 2016
% C
oP
Q a
gain
st N
et S
ales
Co
PQ
in U
S$
Year
Cost of Poor Quality - CoPQ
Total COPQ COPQ % against Sales
65000
22850
20000
40000
60000
80000
2015 2016
US$
Claims paid
Claims paid
12919590358
0
50000
100000
150000
2015 2016
In-transit damage and other losses
In-transit damage and other losses
73
PROPRIETARYAXALTA COATING SYSTEMS
▪ 4.3.0 Project Results
✓ 4.3.2. A – What additional benefits were realized from the project?
4. Implementation and Results Verification
• Improved Inventory Record Accuracy• Elimination of misloading incidences• Speedup and minimized the errors in routine
transactions• Minimized manual intervention and reduced
paper work • Real time information on RM, PM and FG• Loss of time and manpower reduced leading to
resource optimization.• Reduction in supplier incoming % rejection• Improvement in customer score cards• Gassing issue resolved resulting in elimination of
near miss incidences
Example – Reduction in cycle time of CED products
74
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PROPRIETARYAXALTA COATING SYSTEMS
India business team is aggressively focusing on
Industrial & OEM segment for growth wherein the
current system had multiple issues related to FIFO, real
time accounting, misloading, IRA accuracy, customer
complaint, etc. ▪ High cases of misloading of material
leading to QIR’s and customer complaint
▪ The IRA accuracy of the site was also low. ( around 80 % )
▪ Very difficult to manage FIFO for materials
▪ Physical inventory count / cycle count process was tedious and time taking
▪ Loss of time and manpower as traceability of material was very difficult
▪ Repeated manual intervention in material accounting which increases the possibility of human errors