TWI Case Study Vinyl Manufacturing Year Two of OpEx Implementation
Copyright 2004
The Bilas Group, LLC www.thebilasgroup.com (440) 933-9818 [email protected]
Project Background
• Operational Excellence was 16 months • 6 Plants had launched lean• 5 plants are on their own• Current Focus of Operational Excellence
– Changeover Reduction– On Time Shipping Improvement– Inventory Reduction
• Declining market
Copyright 2004
The Bilas Group, LLC www.thebilasgroup.com (440) 933-9818 [email protected]
Issues Identified
• Impact on the bottom-line difficult to see• Kaizen events aren’t seen impacting plant
controllable operating expenses• Kaizens must be covered with OT during high
demand• Two kaizens a month may be too much• Sustaining gains difficult
– Training of new methods– Daily management
Copyright 2004
The Bilas Group, LLC www.thebilasgroup.com (440) 933-9818 [email protected]
Overview of the 5 Stages of the Lean Implementation Framework
• Stability – A consistent and predictable process• Flow – A process that flows smoothly without interruption• Takt – Production is synchronized to the demand of the customer • Pull – Having the right materials, at the right time, in the right quantity
and nothing more to satisfy the customer• Level Production – Level production on the basis of volume, mix and
sequence for the most efficient use of productive resources
Stability Flow Takt Pull LevelProduction
Copyright 2004
The Bilas Group, LLC www.thebilasgroup.com (440) 933-9818 [email protected]
Stability Phase – Description of What Ideal Looks Like• Stability Defined – Predictable and consistent
processes delivering quality products on time every time
• Description of a Ideal Future State– Standard work has been created and is being
followed for all jobs– People are trained to perform standard work in all
jobs in their work areas– Raw materials are provided in a timely manner and
at the proper quality level– Equipment performs at a high level of reliability– The schedule is consistently met
Copyright 2004
The Bilas Group, LLC www.thebilasgroup.com (440) 933-9818 [email protected]
Stability Phase – Required Organizational Capabilities• Standard work and visual controls at all levels
expose and resolve variances between expected versus actual outcomes in all facets of the process
• Maintenance processes provide basic reliability of equipment
• Capable leaders– Able to motivate their people to perform to standard– Able to train their people on jobs – Able to conduct basic problem solving to eliminate
minor problems in the operation
Copyright 2004
The Bilas Group, LLC www.thebilasgroup.com (440) 933-9818 [email protected]
Evaluating Your Plant on StabilityMethods
1. Standardized work is established
2. Everyone follows the standard work or ‘one best way’
3. Std work used to spot abnormal conditions
Manpower1. People are trained on std work2. Leaders and workers are
motivated to follow std wk in their jobs
3. Everyone is involved in daily problem solving
Machines1. Operating conditions are
established for critical equipment
2. Operators are trained on maintaining equipment
3. System in place to predict and prevent failures
Materials1. The correct materials are
available when needed2. Material is of the correct
quality3. The right material is produced
on time every time
Copyright 2004
The Bilas Group, LLC www.thebilasgroup.com (440) 933-9818 [email protected]
Useful Tools to Develop Stability
Methods1. Standardized work 2. 6S/Visual controls3. Check sheets and lists4. TWI – JI/JR/JM5. Lean Management Systems
Manpower1. Standardized work/Visual
controls2. TWI – JI/JR/JM3. Problem Solving Tools –
5 Whys, PDCA, 7 quality tools
Machines1. 6S2. Autonomous Maintenance3. Problem Solving - 5 Whys4. TWI – JI/JR/JM
Materials1. Basic problem solving –
PDCA, 5 whys, 7 quality tools2. Schedule Attainment3. Pull systems
Copyright 2004
The Bilas Group, LLC www.thebilasgroup.com (440) 933-9818 [email protected]
Developing a Training Capability
• Target audience would be supervisors, team leaders, and operators
• Use the TWI JI training method• Base effort on improving business
metrics• Evaluate effectiveness at end of year• Pick one plant to pilot JI
Copyright 2004
The Bilas Group, LLC www.thebilasgroup.com (440) 933-9818 [email protected]
Business Metrics of Target PlantTerre Haute Average Changeover Time
1.81
1.77
1.73
1.70
1.54
1.89
1.45
1.70
0.75
0.95
1.15
1.35
1.55
1.75
1.95
JAN,
2007
FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Cha
ngeo
ver
Tim
e (H
ours
)
Target Actual
Terre Haute On Time Shipping Percent
91.0
%
91.6
%
92.1
%
92.7
%
90.6
%
84.3
%
90.8
%
89.9
%
80.0%
82.0%
84.0%
86.0%
88.0%
90.0%
92.0%
94.0%
JAN,
2007
FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
OT
S (%
)
Target Actual
• Focus on Changeover Reduction
• Improved Delivery• Reduced Inventory• Success would be
moving these metrics
Copyright 2004
The Bilas Group, LLC www.thebilasgroup.com (440) 933-9818 [email protected]
Agenda for a Weeklong Event• Conduct JI training for 2 hours every morning• Analyze gaps in performance for the plant and in the
target area• Identify the processes that deliver the current results• Select the fundamental skills and critical core tasks
essential for delivering a quality product/service• Analyze the tasks and eliminate any waste• Create visual controls and error proofing devices to
reduce training needs• Record the new tasks – standardized work• Develop the training for the tasks – job breakdowns• Train the organization – timetable for training
Copyright 2004
The Bilas Group, LLC www.thebilasgroup.com (440) 933-9818 [email protected]
Agenda for the Week –Standard Work Kaizen with JI
Monday Tuesday Wednesday Thursday Friday
JI Trng-2 hrs JI Trng-2 hrs JI Trng-2 hrs JI Trng-2 hrs JI Trng-2 hrs
AM
Problem Analysis of Target AreaDevelop High Level Process Map
JI Task Assignments Trng – Job Design Principles
Training –Visual Controls Prioritize Visual Controls
Training –Error-proofing Prioritize Tasks for Error-proofing
Prepare for Report Out Report Out
PM
Identify tasks Designate tasks for Visual Controls, Error-proofing or JI Prioritize JI Tasks
Standard Work Review Develop Job Breakdowns
Implement visual controls Continue Job Breakdowns
Implement Error-proofingContinue Job Breakdowns Create Training and Implementation Plan
Copyright 2004
The Bilas Group, LLC www.thebilasgroup.com (440) 933-9818 [email protected]
Analyze Gaps In Performance
• On time shipping, changeover and unplanned downtime were affected by pigment weigh up operations
• Pigment room had significant absenteeism and long term disability issues
• Pigment weigh up was usually an entry level job filled often by temporary workers
Copyright 2004
The Bilas Group, LLC www.thebilasgroup.com (440) 933-9818 [email protected]
Pigment Weigh Up Process
Review Schedule Pick Materials Weigh Materials Stage Materials
Print SchedulePrint Schedule
Read ScheduleRead
Schedule
Get BOM for Product
Get BOM for Product
Plan Pick Sequence
Plan Pick Sequence
Pick Materials(Repeat for
Each Ingredient)
Pick Materials(Repeat for
Each Ingredient)
Prep BagsPrep Bags
Weigh MaterialsWeigh
Materials
Build CartBuild Cart
Complete PaperworkComplete Paperwork
Do SAP Transactions
Do SAP Transactions
Return MaterialsReturn
Materials
Copyright 2004
The Bilas Group, LLC www.thebilasgroup.com (440) 933-9818 [email protected]
Select Fundamental Skills and Critical Core Tasks• Identify routine versus non routine work• Focus on repetitive routine work, easiest
jobs/tasks to more difficult• Critical tasks require high degree of
accuracy– High impact– Require standardized work – Different methods might result in different
results
Copyright 2004
The Bilas Group, LLC www.thebilasgroup.com (440) 933-9818 [email protected]
Critical TasksReview
Schedule Pick Materials Weigh Materials Stage Materials
Print Schedule
Print Schedule
Read Schedule
Get BOM for Product
Get BOM for Product
Plan Pick SequencePlan Pick Sequence
Pick Materials
(Repeat as needed)
Prep Bags
Weigh Materials
Build Cart
Complete PaperworkComplete Paperwork
Do SAP Transaction
s
Do SAP Transaction
s
Return MaterialsReturn
Materials
Copyright 2004
The Bilas Group, LLC www.thebilasgroup.com (440) 933-9818 [email protected]
Analyze the Tasks
• Reduce or eliminate waste• Identify visual controls that help control
the process• Build in error proofing techniques• Simplify, Simplify, Simplify
Copyright 2004
The Bilas Group, LLC www.thebilasgroup.com (440) 933-9818 [email protected]
Opportunities for ImprovementReview
Schedule Pick Materials Weigh Materials Stage Materials
Print Schedule
Read Schedule
Get BOM for Product
Plan Pick SequencePlan Pick Sequence
Pick Materials
(Repeat as needed)
Prep Bags
Weigh Materials
Build Cart
Complete PaperworkComplete Paperwork
Do SAP Transactions
Return MaterialsReturn
Materials
Copyright 2004
The Bilas Group, LLC www.thebilasgroup.com (440) 933-9818 [email protected]
Create Standardized Work Sheets and Job Breakdowns• Standardized work sheets or procedures
capture the steps involved in the task– Sequence of tasks or steps– Time required to do the task– Standard work in process
• Job breakdowns are for training– Important Steps– Key points – Reasons why
• Standardized work sheets and job breakdowns serve two different purposes
Copyright 2004
The Bilas Group, LLC www.thebilasgroup.com (440) 933-9818 [email protected]
The Relationship Between Standardized Work and JI
Standardized Work
Analysis Tool
Eliminate Waste
Best Method
Job Instruction Training
Teaching
Skilled Employees
Consistent Performance and Results
Task Redesign
Baseline for Continuous Improvement
Other Knowledge Required for Job
Adapted from Liker and Meier, Toyota Talent, p.118.
Copyright 2004
The Bilas Group, LLC www.thebilasgroup.com (440) 933-9818 [email protected]
Create a Training Plan
• Use what you currently are using• Timetable for Training handy tool
– Quickly identifies the tasks and people – Can be done in minutes– Execution can begin immediately
• Timetable for training example at another facility
Copyright 2004
The Bilas Group, LLC www.thebilasgroup.com (440) 933-9818 [email protected]
Business Metrics for Target PlantTerre Haute Average Changeover Time
1.81
1.77
1.73
1.70
1.66
1.62
1.58
1.54
1.50
1.46
1.43
1.39
1.54
1.89
1.45
1.70
1.55 1.
60
1.22 1.
27
1.24
1.62
1.61
1.72
0.75
0.95
1.15
1.35
1.55
1.75
1.95
JAN,
2007
FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Cha
ngeo
ver
Tim
e (H
ours
)
Target Actual
Terre Haute On Time Shipping Percent
91.0
%
91.6
%
92.1
%
92.7
%
93.2
%
93.8
%
94.3
%
94.8
%
95.4
%
95.9
%
96.5
%
97.0
%
90.6
%
84.3
%
90.8
%
89.9
%
88.0
%
84.9
%
96.6
% 98.4
%
96.4
%
92.6
% 94.9
%
83.5
%
75.0%
80.0%
85.0%
90.0%
95.0%
100.0%
JAN,
2007
FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
OT
S (%
)
Target Actual
• Achieved stability first, then improvement
• JI was only a part of the effort – must be integrated into improvement program
• Requires leadership
Copyright 2004
The Bilas Group, LLC www.thebilasgroup.com (440) 933-9818 [email protected]
Other Benefits of Implementing JI
• Sent the message that we heard them• Tool for analyzing and improving, then
training on procedures• Inclusion of supervisors and team
leaders into the improvement plan• Ability to sustain improvements• Flexibility of labor