Strength. Performance. Passion.
© 2015 Holcim (Australia) Pty Ltd
Continuous Process Improvement &
Lean Six Sigma in Humes
Presented at NCPAA 28/8/15 by: Damien Richards – National
Operations & Engineering Manager
© 2015 Holcim Ltd
Content
Continuous Process Improvement 3
LafargeHolcim & Humes CPI Program 8
The 8 Wastes 10
5S 19
Humes Sites CPI 45
Where to next for Humes in CPI 59
© 2015 Holcim Ltd
Continuous Process Improvement (CPI)
© 2015 Holcim Ltd
✓ by eliminating waste
✓ streamlining
✓ making the process flow
CPI IS NOT about reducing Manpower!!!
CPI is all about increasing efficiency
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
© 2015 Holcim Ltd
CPI Basics
© 2015 Holcim Ltd
CPI / Lean Six Sigma what is this about?
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
© 2015 Holcim Ltd 7
Define
Measure
Analyze
Improve
Control
Create
Project
Definition
Map the
process
Capture
customer
requirements
Validate
Measurement
System for
output Y
Collect
data
Establish
Baseline
Capability
Identify potential
sources of
variation and Waste
Analyse root
causes
Establish
potential process
improvements
Prioritise
key X’s -
process
inputs
Implement
control plan
Document
Process.
Implement
Controls
Monitor Project
Performance
Over Time
Determine Final
Process
Capability
D M A I C Roadmap
Identify
Solution
Plan
Improvements
Validate
Solution Implement
Improvements
Gate
rev
iew
Gate
rev
iew
Gate
rev
iew
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
© 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
LafargeHolcim CPI Program
© 2015 Holcim Ltd
LafargeHolcim CPI Program
•CPI / Lean Six Sigma Yellow Belt Awareness Training (1 day)
•CPI / Lean Six Sigma Green Belt (8 days)
•CPI / Lean Six Sigma Black Belt (8 days)
•Lean Manager (4 days)
© 2015 Holcim Ltd
The Humes Yellow Belt CI course was
run across all 13 sites and trained
participants in;
• 8 Wastes
• Process Mapping
• Spaghetti Diagrams
• 5S
• Visual Measurement
Humes Yellow Belt CPI Yellow Belt training
Skills
© 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
The 8 Wastes
© 2015 Holcim Ltd
The 8 Wastes
Skills
The 8 Wastes
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
© 2015 Holcim Ltd
All material movement or handling is considered non-value added by the customer
Transportation, does not add value and should be minimized or eliminated
Causes:
• Large distance between operations
• Poor layout
• Batch processing
• LIFO vs. FIFO
• Finite storage areas
Waste 1 – Transportation
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
© 2015 Holcim Ltd
Waste 2 – Inventory
Any material other than what is immediately needed.
It exists as raw materials, WIP or finished goods.
Inventory should act as a buffer and only exist to satisfy customer demand
Causes:
• Relying on forecasting systems
• Long lead times
• Unknown market demand
• Poor scheduling
• Supplier reliability
• Inventory is comforting • Buffer against downtime • Over ordering
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
© 2015 Holcim Ltd
Any movement of people which does not contribute value to the product or service
Extra movements when getting tooling, information etc
Causes:
● Poor work arrangement
● Poor work layout
● Poor facilities
● Not enough tooling
or equipment
● Lost items (searching)
● Non ergonomic work set up
Waste 3 – Motion
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
© 2015 Holcim Ltd
Any idle time, waiting for:
● Equipment/material
● Decisions
● People
● Inspection
● Maintenance
● Paper work/information
Underutilizes resource and results in a decline in productivity.
Causes: “‘Stuff’ not available at the right time in the right place”
● Poor layout
● Poor work balance
● Unreliable equipment
Waste 4 – Waiting
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
© 2015 Holcim Ltd
Producing more than needed and before it’s needed.
Production should be driven by customer demand
i.e. produce what the customer wants when the customer wants it
Causes:
• Make a little more just to be on the safe side
• Overcapacity and the need to keep busy
• Unreliable equipment or processes
Overproduction creates more problems and hides the real causes of the problems
Waste 5 – Overproduction
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
© 2015 Holcim Ltd
Effort which adds no value to a product or service
Tasks, process steps, time allocated and parts provisioning are more involved than needed to achieve customer requirements
Waste 6 – Over Processing
Causes:
• That’s the way we’ve always done it
• No standard work
• Mistakes in process
• Excessive checking
• Closed-minded thinking
• Poor layout
• Improper fixtures, tools, jigs
• Poor communication between process steps
What the
customer
wanted and
paid for.
An over
processed
product
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
© 2015 Holcim Ltd
Waste 7 – Defects
Scrap / Rework from a poorly running process, repair of a product or service to fulfil customer requirements
Task improperly performed due to human factors
Defective materials and Incorrect information
• Causes:
• Incorrect specifications
• Damaged or lost materials
• Poor/no training
• Misunderstandings
• Storage concerns
• Passing on defects
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
© 2015 Holcim Ltd
Waste 8 – Skills
Under utilizing capabilities, delegating tasks with inadequate training.
"It is only by capitalizing on employees' creativity that organizations can eliminate the other seven wastes and continuously improve their performance”
Causes:
When employees potentials are not leveraged on by the organization, the opportunity cost becomes a direct waste to the bottom line. Other examples of this waste are as follows:
• Persons put on the wrong job
• Giving position without the requisite authority
• Not dealing with perpetual under performance.
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
© 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
5S
© 2015 Holcim Ltd
5S is a systematic, step-by-step process to produce a clean and well organized work area
5S is based on the premise that a clean and well organized work place is more productive, less frustrating and safer for employees.
In a clean well organised workplace you can spot abnormalities and address them
How?
5S allows you to remove the clutter around an operation and see how a process is really working ….or not working.
You set the goals high and accept nothing less.
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
What is 5S?
5S
© 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
5S Stands for….
1S - Sort
2S - Straighten
Sort needed and unneeded items;
eliminate what is not needed
A place for everything and everything in its place
Clean up the workplace; this is cleaning and looking
for ways to keep it clean 3S - Shine
Maintain and Monitor the first 3 S’s; Standardise so
everyone is doing it the same
Make the 5S’s part of the job; measure progress; stick to the
rules
4S - Standardise
5S - Sustain
5S
© 2015 Holcim Ltd
5S in a Nutshell
© 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
1S - Sort Sort through, and sort out.
Rules for the first S – Sort:
Only keep the items you need in the area to perform the work at hand
If you won’t need it in the near future, don’t keep it in your area
In some cases, you may consider removing everything from the area, and starting over
Make a visual record
5S
© 2015 Holcim Ltd
1S - Sort
5S
© 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
Red Tag Area
The unnecessary items can be moved out to a ‘red tag’ holding area.
The remaining necessary items can be then organized.
Label all items in need of repair or adjustment
The items can be repaired and placed back in good working order
Decide on a time frame for disposal of items
Red tag area is NOT a long term storage solution!!!
5S
© 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
2S - Straighten
The full meaning of the second ‘S’ is:
To straighten out the area, simplify the work by putting things where they are needed and reduce unnecessary movement.
Decide and organize where to keep necessary items.
Organize how to keep them.
Make it easy for anyone to find and use them.
Make it obvious when they are not in their correct place.
5S
© 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
2S - Straighten Analyze current situation
By locating parts, equipment, machinery and tooling, files, desks… in the best location possible, we can minimize motion waste
Analyze area map
Organize – decide on a location of items based on the frequency of their use
Start with large items (furniture, file cabinets, benches, etc)
Make sure it’s obvious where things belong
Lines
Labels
Sign boards
This ensures anyone can find them and put them away!
A place for everything and everything in it’s place
5S
© 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
Straighten – Work Flow
Set up work place in the
order that equipment is going
to be used
When setting in order, think
about the flow of work
through your area.
5S
© 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
Deciding where it goes
A Category = used frequently (at least daily)
Store within easy reach and as close as possible to
the point of use.
B Category = used often (at least once a
week)
Store close to the point of use but out of the
way
C Category – Used infrequently (once a month or less)
Store away from the workplace in a clearly marked area
5S
© 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
Storing Items
Organize your storage areas by “Street”, and “Address”.
Give items a permanent home.
How to store items so they are easy to find, and easy to replenish.
1
2
3
4
5
C B A
Maximum stock quantities are marked off.
5S
© 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
Lines
Paint is normally used, but tapes or acrylic sheets are
also suitable
Start drawing lines to identify aisles
and work areas
One-way or two-way traffic?
Use broken lines for exits and
entrances
5S
© 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
Possible Floor marking - colour standards
Green – First Aid
Red – Fire
Blue – Bins
Yellow – Walkways
Ensure each area is also labelled
5S
© 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
Tools and Equipment Can tool/equipment be eliminated?
Can complexity or variety of tools be reduced?
Tools/equipment should be arranged ergonomically
Worker must easily identify storage locations for tool/equipment
5S
© 2015 Holcim Ltd
BEFORE AFTER
5S
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
© 2015 Holcim Ltd
5S
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
© 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
Work
instructions
visible and at
eye level
Tools required
are at arms
reach and
over waste
height
Operator
doesn’t need
to leave work
station to find
necessary
equipment
Shadow board
makes tools
easy to find
and indicates
when they are
missing
Point Of Use Storage
5S
© 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
3S - Shine
When things are in top condition, they will be ready to use when
we need them
We are not cleaning just to clean, keep eyes open for anything
out of the norm
- CleanIing is Inspection
- Inspection is Detection
- Detection is Correction
5S
© 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
Shine – Eliminate contamination
Now we can see the condition of
the machinery it is much easier to
detect problems
Is this piece of machinery
running efficiently?
Machines are normally grey to “mask” dirt and oil.
5S
© 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
4S - Standardise How to keep things as you want them:
Develop standards including frequency and responsibilities
» Who is responsible
» What goes where
» How often to sweep, clean, organize...
» What to do if things are not as expected
Involvement is the key to a successful set of standards
Three examples of standardisation
Check sheets
Daily Logs – with sign off and date/time
Work instructions
5S
© 2015 Holcim Ltd
Use of Visual Management techniques for WIP and
storage
4S - Standardise
5S
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
© 2015 Holcim Ltd
4S - Standardise
5S
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
© 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
5S - Sustain
Without Sustain, the other S’s will not last long.
Everyone must follow the agreed upon standards.
Without Discipline – building the right behaviours, building good
habits, things tend to go back to the way they were.
5S
© 2015 Holcim Ltd
Sustaining 5S
5S
© 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
5S – Sustain
Motivate Employees to Sustain
Leadership is the key
Management at all levels must be committed
Staff must ensure that the work area meets 5S principles at the end of each day
Use audits / checklists for monitoring adherence
Quantify results of workplace inspections
Prominently display each area’s results
Hold competitions between areas
Use rewards and recognition
5S
© 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
Sustain Tools… Audit Score Sheet Location: Date: Score: 0
Audited by Previous Score:5
Best Practice; World Class; General Manager review
;Sustained for at least 6 months
Action to improve score
1
2
3
4
5
0
6
7
8
9
10
0
11
12
13
14
15
0
16
17
18
19
20
0
21
22
23
24
25
0
0
STEP 2: Straighten
STEP 3: Shine
STEP 4: Standardise
First Impression
Overall
Only the current levels of inventory in the area is needed for the w ork at hand. Scrap
and rew ork items are placed in clearly marked containers.
Only the necessary items to perform the w ork at hand are located in the area. There
are no unneeded machines, tools or furniture in the area.
All tools, f ixtures and jigs in the area are used on a regular basis. Any items that are
used less than once a day, are stored out of the w ay.
No outdated, torn or soiled announcements are displayed. All bulletins are arranged in a
straight and neat manner.
Your general impression should tell you this is the best you have seen for a
manufacturing environment.
Components,
materials & parts.
Machines, benches,
cabinets & furniture.
Tools, f ixtures &
other equipment.
Bulletin Boards
SORT TOTAL SCORE
SUSTAIN TOTAL SCORE
OVERALL SCORE
STANDARDISE TOTAL SCORE
SHINE TOTAL SCORE
STRAIGHTEN TOTAL SCORE
Machines, benches, etc. are arranged in a logical & neat fashion to promote a smooth
product f low through the w ork area.
Lines on the f loor clearly mark aisles, w alkw ays, w ork areas, storage locations and
danger areas.
Only current labelled documents and binders necessary to do the w ork are stored at
w orkstations. Documents and binders are stored in a neat and orderly manner.
Items are arranged, divided, and clearly labelled such that it is obvious w here things are
stored and if they are missing.
Tools, gages and f ixtures are arranged neatly and stored, kept clean and free of any
risk from damage. They are located for easy access for changeovers.
All f loors are clean and free of debris, oil, and dirt. Cleaning of f loors is done routinely
and at appropriate predetermined intervals.
Routine cleaning of machines is apparent, there is no oil, chips, scrap laying on w ork
surfaces. Glass view w indow s, guards, deflectors are clean & in place.
All cleaning equipment (trash cans, brooms, f loor sw eep, etc.) are stored in a neat
manner. It is obvious w here it belongs and is easily available w hen needed. Hazardous
materials and all storage containers are properly labelled.
All equipment, benches, fans… everything in the area is cleaned on a regular basis, and
ow nership by operators goes beyond just the machine they run.
When unexpected delays occur, operators habitually & automatically sw eep floors &
w ipe equipment.
Display boards are present in each production w ork area and accessible to all
personnel in the area.
5S audits are performed in each w ork area at least monthly, results are shared w ith all
w orkers and goals for new levels set w ith action items.
PPE notices are posted in every area and all employees are w earing the required PPE's.
It is obvious that w orkers w ho perform similar duties, use standard methods to achieve
consistent results.
Methods are review ed on a regular basis, and as new methods are developed, they are
quickly documented and adopted by others.
Employees are adequately deployed to keep equipment operating properly. A Preventive
Maintenance program is in place and functions at a high level.
STEP 5: Sustain
Methods review ed
Safety
Standard w ork
Each area of the operation, inside and out, falls under the responsibility of a manager
w ith 5S auditing and assignment authority.
All documents and binders are clearly labelled as to their contents. Responsibility for
control & revisions is clear. Nothing is unlabeled.
Responsible manager/staff person visits each w ork area on a regular basis and
provides feedback on 5S efforts and results.
Disciplined controls to assure each of above items is maintained at highest level. There
is a sense of responsibility by all employees to maintain systems.
Area layout
Aisles, w alkw ays
and f loor markings
Documentation and
Visual signals
Visual displays and
storage
5S audit
STEP 1: Sort
Cleaning beyond
machines
Cleaning due
diligence
1 2
Specif ic locations for
f ixtures & tooling
Condition of f loors
Machines/Equipment
Cleaning supplies
and tools
Visual Control
Weekly/Monthly
audits
4Not started; zero effort Activity started, slight
effort
Best in Class results;
Manager/Supervisor review;
Sustained for 1 month
3Minimum acceptable
level sustained for at
least 1 month
Widespread activity; however
still many opportunities for
improvement
0
5S Control &
Sustaining
Maintenance
Area Responsibility
Documents: Control
Work Area Visits
Hint: Use this in the 5S Pre-
Work. Use it to establish a
baseline for any 5S activity!
5S
© 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
5S – First Steps
Complete a baseline audit
Complete 5S contract and timeline
Set up board
Set target audit score to get to sustain
Construct an audit plan
Complete action item list
Plan 5S activity time
5S
© 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
Humes journey to date and
some examples of CPI in
action
© 2015 Holcim Ltd
• One of the Rockhampton teams
scored the highest improvement
in Humes in the courses mock
factory exercise.
Humes Yellow Belt training activity
• Rockhampton’s Operations &
Production Managers, Supervisors,
Production Engineer and Leading
hands all undertook the Yellow Belt
training in early July 2014.
© 2015 Holcim Ltd
• Monthly 5S auditing and scoring in
place.
• Actions to improve scores in all areas
delivering improvement results.
Rockhampton now has a 5S Program in place
© 2015 Holcim Ltd
CI boards and initial sorting in place
© 2015 Holcim Ltd
• Detailed Waste analysis undertaken.
• Short and long term plans put in
place to remove/reduce wastes.
• 57 detailed actions undertaken to
meet short and long term plans.
Waste Analysis and removal/reduction
© 2015 Holcim Ltd
Visual Measurement Boards
Ipswich
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27 54
© 2015 Holcim Ltd
Machine Loss Improvements - Waste Identification and
analysis
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27 55
© 2015 Holcim Ltd
Visual Standards
Ipswich Journey
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27 56
© 2015 Holcim Ltd
Go-No-Go Bug Hole Gauge
Ipswich Journey
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27 57
© 2015 Holcim Ltd
• “A place for everything and everything in its place”
• Shovel & Tool Rack
5S Improvements
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27 58
© 2015 Holcim Ltd
• Video Cameras Purchased
• filming mould changes & quality problems
• Parts List Developing with Repair buckets Implemented
5S Improvements
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27 59
© 2015 Holcim Ltd
• Progress with Kanban systems around critical spares
• Completed for foot anchors
“Simplicity is the ultimate form of sophistication”
5S Improvements
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27 60
© 2015 Holcim Ltd
• Stands made for shaft mould supports
5S Improvements
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27 61
Quick Release
Pins – Bolts are
the Enemy
© 2015 Holcim Ltd
• Reo issue analysed by fishbone diagram, reo jig corrected for
clear practice.
Root Cause Analysis
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27 62
© 2015 Holcim Ltd
• Reo issue analysed by fishbone diagram, reo jig corrected for
clear practice.
BEFORE AFTER
Root Cause Analysis
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27 63
© 2015 Holcim Ltd
15min Flash Meetings
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27 64
• 15 min daily meeting covering; PROCESS: All items are categorized and chart developed in excel into red and green. If in green, congratulated and
moved on. If in red, there is room for improvement and/or further discussion is required. All meeting participants
update their area 5-10 minutes prior to meeting. Purpose of the meeting is an information gathering session to
assess key areas around the plant and each area’s performance in past 24 hours. It then looks forward and
discusses forecasts and flags issues that could affect projections for next 24-48 hours. It is not a problem solving
meeting! Actions are assigned and dealt with outside of meeting hours.
FLOW:
• Past 24 Hours: WHS & E, People and Development, Customer Related material and Operational
• Excellence.
• Next 24- 48 hours: Customer & Operational forecast, Items around the Plant
• Commercial Effectiveness: Issues that Influence a Day’s work in a day.
• Actions
• Other Issues/Comments
© 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
Where to next for Humes
© 2015 Holcim Ltd
Where to next: Developing people with CI Capabilities
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27
© 2015 Holcim Ltd
“Food for thoughts”: DuPont Experience
NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27