applying knowledge management tools/ concepts to solve a company problem in schaffner

energy efficiency and reliability

Applying knowledge management tools/ concepts to solve a company problem in Schaffner.

AB Goh

9 January 2011.


Presentation title DD.MM.YYYY 2

Fig. 1.0 - Choke ComponentsPlastic Housing

Steel Wire

Separator

Toroid

Copper Wire

Resin



Applying knowledge management tools to solve a company problem in Schaffner.

1. Figure 1.0 shows the Choke products which are the traditional strong hold products of Schaffner.

2. At the peak, a few years ago Schaffner produces between 1 million to 1.5 millions a year.

3. The Choke products is also one of Schaffners’ revenue generators.

4. In the year 2008 Schaffner sold slightly above half a million pieces and 2009 , Schaffner sold much less than half a million pieces.



Applying knowledge management tools to solve a company problem in Schaffner.

1. The main problem is ;

1. Schaffner is losing market share and is being threatened that the entire Choke business will be wiped out within two to three years.



Problem; Schaffner is losing market share and is being threatened that the entire Choke business will be wiped out within two to three years.

Losing market share on Choke products

Not designing to customers’ requirements

No priority for salesmen to sell

Schaffners’ Chokes have lesser performance features than competitors

Unhappy customers

Fig. 2.0

Schaffner’s prices are above the competitors

Customers shifting to new technology platform

3%

>3%

>40%

>44%

>5%

>5%



Problem; Schaffner is losing market share and is being threatened that the entire Choke business will be wiped out within two to three years


Man

MaterialsMachine

MethodsToo much walking around

Cost reduction by 25%

High content of manual operations

Throughput time too long

Cycle time too long as compared to standard

Related machines are in different floors/ locations causing too much transportation

Work sequences not optimised.

Still buy materials from Europe ( costly)

use over specified materials resulting buying expensive materials

No cost reduction targets with suppliers

Workers are not ergonomically positioned

Machines are not fully automated

Fig. 2.1

2

1

3

1

4

11

5

6

9

8

7

11

10

40%




Unhappy customers

Quality issues

Potting materials not fully hardened

Poor solder joints

Poor on- time deliveries

Too long to pick materials at warehouseto fill a work order

Long set – up times required beforeProduction can start

Fig. 2.2

Suppliers not delivering materials on-time Inflexibility of production lines 6

5

4

3

1

7

2 scratches

44%



Reorganise the work flow from traditional production conveyor lines to lean cell concepts.

1. By applying Lean cell concepts , the following causes/ actions will be taken care of;

1. Fig.2.11. Cause #12. Cause #33. Cause #74. Cause #85. Cause #96. Cause #10.

2. Fig.2.21. Cause #4.2. Cause #53. Cause #6.



Application of LEAN CELL CONCEPTS

First , the entire process is mapped out as shown in fig.2.3. All the processes are studied by removing the 7 wastes in

manufacturing. Figures 3.0 A to 3.0D show the application of lean cell concepts. Fig. E is the final lean cell layout. The lean cell concepts will reorganise all the process stations

close together with the objective of a smooth and ergonomic flow.

One piece flow is applied. Materials are at the point of use. It is a two bin system .



Fig. 2.3 Choke Process Flow

WindingPin Insertion

Assembly

Soldering

Moulding

Baking

Hi-Volt test

Test

Cutting & Wave Dipping

Printing

Packing



7 Wastes In Manufacturing

Rejects andRejects andDefectsDefects

Seven Seven WastesWastes

OverOverProcessingProcessing

InefficientInefficientTransportationTransportation

UnnecessaryUnnecessarymotionmotion

UnnecessaryUnnecessaryStockStock

WaitingWaitingTimesTimes

OverOverProductionProduction

Fig.3.0 A



REWORK

UNSTABLEDEMAND

MACHINEBREAKDOWNS MIXED MATERIALS

POOR HOUSEKEEPING

HIGH MANPOWERREQUIREMENTS

GENERATINGDEFECTIVEPRODUCTS

High inventory hides the problem

LONG SET UPS

DELAY IN DELIVERIES

100 meters

High water level conceals the rocks

Fig.3.0B



REWORK

UNSTABLEDEMAND

MACHINEBREAKDOWNS MIXED MATERIALS

POOR HOUSEKEEPING

HIGH MANPOWERREQUIREMENTS

GENERATINGDEFECTIVEPRODUCTS

LONG SET UPS

DELAY IN DELIVERIES

Low inventory exposes the problem

50 meters

Low water level reveals the rocks

Fig.3.0C



One Piece Flow Production in a Cellular Layout:Significantly reduces transportation, inventory, and waiting time while improving quality, delivery, and costs.

Smooth cellular flow by connecting the relevant processes together:

Value Adding Processes

Operation 1

Customer Raw Material

Operation 2

Operation 3

Operation 4

Operation 5

Fig.3.0D



Fig. E Choke Lean Cell




By automating the process operations the following causes / actions will be solved.

1. Fig 2.21. Cause # 22. Cause #11

2. Fig. 2.2 1. Cause # 2.

Use Nonaka model for automating the following process operations;1. Winding process.2. Cutting and wave dipping process.3. Pin- insertion process.4. Assembly process.5. Moulding process.

This will cut cycle time by at least 35% but most important is the quality improvements ( yield and less scrap).



Fig. D-1 Choke Process Flow

Process Time(sec)

Picture

Automate the winding process

68.45

Automate Cutting & Wave Dipping

38.34




Process Time(sec) Picture

Automate Pin Insertion process

1.9

Automate Assembly process

36.84



Process Time(sec)

Picture

Soldering 11.67

Automate Moulding

process

2.81




Dialogue

Learning byDoing

LinkingExplicitKnowledge

FieldBuilding

Socialization Externalization

Internalization Combination

Tacit TacitTa

cit

Taci

t

Explicit Explicit

ExplicitExplicit

Fig. 1.0 – four modes of knowledge conversion



3 2 1 0

tacit

explicit

tacit

combinationinternalization

externalizationsocialization

explicitto

from

Figure 2.0 – 3 years of spiraling knowledge

Yr 1, tacit to tacit = socialization

Target is to automate winding fully



Knowledge management – Nonaka model

Yr 1 = tacit to tacit SOCIALIZATION( Fig. 2.0) Grand theme; maximachine/minihuman

Automate winding

Socialization; How- To Get the experts and most experienced winders for a brain

storming session. Informal gatherings. Off- site meetings for 3 days. Building samples, experimenting and sharing etc. First 4 months – no formal reviews , just discussion.




3 2 1 0

tacit

explicit

tacit



explicitto

from


Yr 2- tacit to explicit – Externalization-automate cutting and dipping




Yr 2 = tacit to explicit EXTERNALISATION (Fig. 3.0)

Grand theme; maximachine/minihuman Automate cutting and wave dipping How – To

Document useful discussion, observations and experiments.

Mid – theme ; The cookie concept Aims to produce chokes like cookies. Understand how cookies are fully automated and produced. Consistency of the cookies produced. Low cost production. Easy packing




3 2 1 0

tacit

explicit

tacit



explicitto

from


Yr 3- explicit to explicit

- Combination

-Automate the assembly




Yr 3- explicit to explicit

COMBINATION (Fig. 4.0) Automate the assembly

Grand theme; maximachine/ minihuman

Final theme; Everyone loves cookie. How- To. Exchange ideas and experiences. Combine , sort and prioritize concepts of value. Formal and informal communications. Exchange visits with European colleagues.




3 2 1 0

tacit

explicit

tacit



explicitto

from


>Yr 4 explicit to tacit- Internalization-

- Continue automation of other operations

46




Beyond 3 Yrs- explicit to tacit Continue automations of other operations

INTERNALIZATION (FIG. 5.0)

Grand theme; maximachine/ minihumanHow- To; Verbalize ,constant interactions and informal groups

gatherings. Continue to document success stories and new learnings. Alignment use ROFO MODEL Encourage learning by doing Mindset change and modification of behavior towards

learning.



Fig. 2.2 Quality issues – solve by implementing Total Quality management TQM

Fig. 2.2 Qualty issues

1. Cause # 12. Cause # 2.

This is solved by implementing SPC and multivari – charts as shown in Figures 6.0 A and 6.0 B.1. A X- bar , R chart is used to track the dimensions of the

housing .2. A multi vari chart is used to track the solder defects and the

scratches. 3. Cpk – process capability index of 2.0 is set as target. Fig. 6.0

C A TQM approach is also applied throughout the company by

incorporating training and development plan



Fig. 6.0 A -1 X- bar chart

Upper control limit

Lower control limit

henr

y

1

3

2

4

1 2 43Time hrs



Fig. 6.0 A – 2 R- chart

Upper control limit

Lower control limit

henr

y

1

3

2

4

1 2 43Time hrs



RENAULT – SCHAFFNER’S MODEL OF RENAULT QUALITY SYSTEMS

The Multi- Vari chart fig. 6.0B

defe

cts

Time ( hrs or shifts)

I II III IV

12

4

5

3



Process Capability StudyLower

Specification Limit, LSL

Upper Specification Limit, USL )

3'

3min(

LSLxxUSLC pk

61

3131

Cpk = 1Three Sigma (3) process

2700 ppm

3232

62

Cpk = 2Six Sigma (6) process3 ppm

We need suppliers to have the same mindset and practice of

Consistency

Specification mean

Fig . 6.0C



SUPPLIER MANAGEMENT PLAN( SMP)

SMP By localisation of European parts. Manage suppliers by developing merit points ;

Quality------------ 50 points. Cost……………..20 points. Delivery…………30 points.

On- time delivery targets are jointly set with suppliers. Develop local suppliers that have materials that are less

expensive than European materials. This can be achieved by changing the specification of materials with R&D.

The above actions will reduce materials costs by 18%.



The final picture.

Figures 7.0 A and 7.0 B show how the target is achieved.




Man

MaterialsMachine

MethodsToo much walking around

Cost reduction by 25%

High content of manual operations

Throughput time too long

Cycle time too long as compared to standard

Related machines are in different floors/ locations causing too much transportation

Work sequences not optimised.

Still buy materials from Europe ( costly)

use over specified materials resulting buying expensive materials

No cost reduction targets with suppliers

Workers are not ergonomically positioned

Machines are not fully automated

Fig. 7.0 A

2

1

3

1

4

11

5

6

9

8

7

11

10

Solve by automation solve by developing a supplier management plan

Solve by lean cell

40%




Unhappy customers

Quality issues

Potting materials not fully hardened

Poor solder joints

Poor on- time deliveries

Too long to pick materials at warehouseto fill a work order

Long set – up times required beforeProduction can start

Fig. 7.0 B

Suppliers not delivering materials on-time

Inflexibility of production lines6

5

4

3

1

7

2 scratches

Solve by TQM

Solve by supplierManagement plan

Solve by automation

Solve by lean cell 44%



Thank you very much for your attention.

Any questions?

applying knowledge management tools/ concepts to solve a company problem in schaffner

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