Download - Delphi - “Eyes for Waste” & “ Eyes for Flow”
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“Eyes for Waste” & “ Eyes for Flow” “Eyes for Waste” & “ Eyes for Flow”
Brian O’Neill – General Director, Manufacturing Operations, Delphi Steering
December 3, 2004
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2003 Revenue
* Does Not include Inter-Sector eliminations of ($2.0B)
Dynamics, Propulsion Thermal & Interior Sector
2003 Sales $14.2 B•Engine & Emission Management Systems
•Energy Management Systems
•Vehicle Dynamics
•Thermal Management Systems
•Interiors
Electrical, Electronics, & Safety Sector
2003 Sales $12.9 B•Integrated Body Electronics
•Powertrain Electronics
•Chassis & Safety Electronics
•Audio Systems & Mobile Multimedia
•Safety Systems
•Electrical & Electronic Systems
•Product & Service Solutions
Automotive Holdings Group
2003 Sales $3.0 B•Generators
•Instrumentation
•Other
Enterprise Technologies
Sales & Marketing
2003 Sales $28.1 B*
Lean Manufacturing
4As of October 16, 2003
Mexico & South America
Manufacturing sites:Employment:
Joint ventures:Technical centers:
Manufacturing sites:Employment:
Joint ventures:Technical centers:
4951,000714
4951,000714
Manufacturing sites:Employment:
Joint ventures:Technical centers:
Manufacturing sites:Employment:
Joint ventures:Technical centers:
4776,50094
4776,50094
Manufacturing sites:Employment:
Joint ventures:Technical centers:
Manufacturing sites:Employment:
Joint ventures:Technical centers:
6149,000910
6149,000910
Asia Pacific
Total DelphiManufacturing sites:
Employment:Joint ventures:
Technical centers:
Manufacturing sites:Employment:
Joint ventures:Technical centers:
Manufacturing sites:Employment:
Joint ventures:Technical centers:
Manufacturing sites:Employment:
Joint ventures:Technical centers:
1410,000176
1410,000176
171186,5004234
171186,5004234
U.S. & Canada Europe & Middle East
Extensive Global Presence
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Customer Breadth
Represents only a sample of our customers
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What’s Lean?
Over
Short
Demand
Capacity =
$$
$$$
Lean = Minimum Gap
TIME
7
Approach for matching capability…
…through the identification and elimination of
Fluctuation – Overburden - Waste
Implement the best possible combination of :
…focusing on:
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Time
The Lean JourneyP
erfo
rman
ce
INSTABILITY
(No sustainableImprovement)
STABILITY
(SustainableImprovement)
• Get control of quality• Get to schedule
9
Lean & Six Sigma = Control of Variation
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What’s Lean?
Over
Short
Demand
Capacity =
$$
$$$
Lean = Minimum Gap
TIME
77
Approach for matching capability…
…through the identification and elimination of
Fluctuation – Overburden - Waste
Implement the best possible combination of :
…focusing on:
88
Time
The Lean Journey
Per
form
anc
e INSTABILITY
(No sustainableImprovement)
STABILITY
(SustainableImprovement)
•Get control of quality•Get to schedule
10
Lean is often Counter Intuitive
One piece flow Slowing down operations Small lot containers Training in too large a bucket Overproduction Learn & Do Some systems shield the waste
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Flow Can Be Deceiving
River flow
Air flow
Traffic flow
Information flow
Product flow
Manufacturing flow
Engineering flow
Process flow
What we “see” is not always what is
happening
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B E F O R EB E F O R E A F T E A F T E RR
Stockroom Variation
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Changeover Variation
B E F O R EB E F O R E A F T E A F T E RR
Bolts increase the Bolts increase the time of changetime of change
Quick change Quick change devices devices
implementedimplemented
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Original container from supplier
Workplace Variation
B E F O R EB E F O R E A F T E A F T E RR
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B E F O R EB E F O R E A F T E RA F T E R
Chasing critical production requirements
Build to Order/Level Scheduling Board
Scheduling Variation
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Cycle Time Variation
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B E F O R EB E F O R E A F T E A F T E RR
Waste Stream Variation
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High MaintenanceHigh Utility CostPermanent Sump Investment $125,000
Commercial washers Investment $700
B E F O R EB E F O R E A F T E A F T E RR
Uptime Variation
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Labeling Variation
Must improve System
Integration between :
• Quality Control• Engineering• Manufacturing
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Operator Instruction Variation
Helpful Notes
Or
Standard Work
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Step 1. Select Focus
Cost Reduction Focus ?
Regional Focus ?
Development Focus ?
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Step 2. Select Metrics
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Step 3: Analyze for Leverage
%
0
0.5
1
1.5
2
2.5
3
3.5
4
EPS - RACK & PINIONMACHINING
EPS - RACK & PINIONASSEMBLY
EPS - I-SHAFT &JACKET MACHINING &
ASSEMBLY
EPS - COLUMN FINALASSEMBLY
EPS - ASSIST MECHASSLY & WORM
MACHINING
EPS - MOTORCONTROLLER &
SHAFT & HOUSING
No
rmal
ize
d S
core
Build Perf.
Inspectors
FTQ
Overtime
Scrap
Maint.
Tools
Processing
0
0.5
1
1.5
2
2.5
3
3.5
4
EPS - RACK & PINIONMACHINING
EPS - RACK & PINIONMACHINING
EPS - RACK & PINIONASSEMBLY
EPS - RACK & PINIONASSEMBLY
EPS - I-SHAFT &JACKET MACHINING &
ASSEMBLY
EPS - I-SHAFT &JACKET MACHINING &
ASSEMBLY
EPS - COLUMN FINALASSEMBLY
EPS - COLUMN FINALASSEMBLY
EPS - ASSIST MECHASSLY & WORM
MACHINING
EPS - ASSIST MECHASSLY & WORM
MACHINING
EPS - MOTORCONTROLLER &
SHAFT & HOUSING
EPS - MOTORCONTROLLER &
SHAFT & HOUSING
No
rmal
ize
d S
core
Build Perf.
Inspectors
FTQ
Overtime
Scrap
Maint.
Tools
Processing
Normalized Weighted Sum
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Let’s look at this three-step process using
a product quality example
Hypothetical Example
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Step 1: Select Metrics
Customer Shut Down Actual Customer B Complaints Actual Warranty Incidents % Actual Warranty $ ActualSwitch D Defect 1 Cosmetic Defect 94 Component D Defect 0.164 Switch A Failure Appl. A $3,300,000
Lever Defect 1 Wrong/Missing Parts 88 Switch A Failure Appl. A 0.134 Switch B Failure $1,330,000Missing Parts 1 Switch A Failure 60 Noise 0.123 Switch A Failure Appl. B $167,000
Switch C Defect 1 Noise 32 Switch B Failure 0.116 Component C Defect $99,000Switch B Failure 28 Switch A Failure Appl. B 0.088 Noise $56,000Switch C Failure 25
Lever Defect 23
Total 4 350 0.625 $4,952,000
FTQ Actual Supplier Complaints Actual Online Inspection Actual Scrap $ ActualFinal Assembly 915 Switch A Supplier A 145 Noise 336 Shaft $70,000Switch B Failure 687 Switch A Supplier B 68 Switch A Not Seated 268 Bracket A $29,000
Lever Defect 615 Housing Supplier 44 Component C Not Seated 210 Mount Pad $26,000Cosmetic Defect 350 Lever Supplier 35 Component A Not Seated 173 Motor $26,000
Missing Component A 295 Component A Supplier 32 Switch B Wrong Setting 111 Label $24,000Missing Component B 282 Component B Supplier 21 Switch B Not Seated 67 Pivot Mechanism A $22,000
Bracket Defect 260 Switch D Supplier 19 Lever Missing 64 Tie Down $21,000Lever Defect 231 Switch A Supplier C 15 Switch C Not Seated 63 Bracket B $18,000
Component A Defect 220 Component C Supplier 15 Component D Missing 61 Pivot Mechanism B $17,000Component B Not Seated 54 Bracket Assembly $14,000
3855 394 1407 $267,000
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Step 2: Determine Importance
“Customer is King” Weighting:
3X for Customer Shutdown
2X for Customer Complaints & Warranty
1X for Plant Performance Metrics : First Time Quality
Supplier Complaints
Inspection
Scrap
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Step 3: Analyze for Leverage
1. Determine weighting on metrics
2. Normalize each metric
3. Multiply by weighting
4. Add the resulting values by failure type
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Normalized Weighted Sum
Customer B Complaints Actual Normalized Weight = 2Cosmetic Defect 94 0.269 0.537
Wrong/Missing Parts 88 0.251 0.503Switch A Failure 60 0.171 0.343
Noise 32 0.091 0.183Switch B Failure 28 0.080 0.160Switch C Failure 25 0.071 0.143
Lever Defect 23 0.066 0.131
Total 350 1 2
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Look for leverage by grouping common failures
Customer Shut Down Weight = 3 Customer B Complaints Weight = 2 Warranty Incidents % Weight = 2 Warranty $ Weight = 2Switch D Defect 0.75 Cosmetic Defect 0.537 Component D Defect 0.525 Switch A Failure Appl. A 1.333
Lever Defect 0.75 Wrong/Missing Parts 0.503 Switch A Failure Appl. A 0.429 Switch B Failure 0.537Missing Parts 0.75 Switch A Failure 0.343 Noise 0.394 Switch A Failure Appl. B 0.067
Switch C Defect 0.75 Noise 0.183 Switch B Failure 0.371 Component C Defect 0.040Switch B Failure 0.160 Switch A Failure Appl. B 0.282 Noise 0.023Switch C Failure 0.143
Lever Defect 0.131
Total 3 2 2 2
FTQ Weight = 1 Supplier Complaints Weight = 1 Online Containment Weight = 1 Scrap $ Weight = 1Final Assembly 0.237 Switch A Supplier A 0.368 Noise 0.239 Shaft 0.262Switch B Failure 0.178 Switch A Supplier B 0.173 Switch A Not Seated 0.190 Bracket A 0.109
Lever Defect 0.160 Housing Supplier 0.112 Component C Not Seated 0.149 Mount Pad 0.097Cosmetic Defect 0.091 Lever Supplier 0.089 Component A Not Seated 0.123 Motor 0.097
Missing Component A 0.077 Component A Supplier 0.081 Switch B Wrong Setting 0.079 Label 0.090Missing Component B 0.073 Component B Supplier 0.053 Switch B Not Seated 0.048 Pivot Mechanism A 0.082
Bracket Defect 0.067 Switch D Supplier 0.048 Lever Missing 0.045 Tie Down 0.079Lever Defect 0.060 Switch A Supplier C 0.038 Switch C Not Seated 0.045 Bracket B 0.067
Component A Defect 0.057 Component C Supplier 0.038 Component D Missing 0.043 Pivot Mechanism B 0.064Component B Not Seated 0.038 Bracket Assembly 0.052
Total 1 1 1 1
Boxes are all “Switch A” failures
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Customer Shut Down Weight = 3 Customer B Complaints Weight = 2 Warranty Incidents % Weight = 2 Warranty $ Weight = 2Switch D Defect 0.75 Cosmetic Defect 0.537 Component D Defect 0.525 Switch A Failure Appl. A 1.333
Lever Defect 0.75 Wrong/Missing Parts 0.503 Switch A Failure Appl. A 0.429 Switch B Failure 0.537Missing Parts 0.75 Switch A Failure 0.343 Noise 0.394 Switch A Failure Appl. B 0.067
Switch C Defect 0.75 Noise 0.183 Switch B Failure 0.371 Component C Defect 0.040Switch B Failure 0.160 Switch A Failure Appl. B 0.282 Noise 0.023Switch C Failure 0.143
Lever Defect 0.131
Total 3 2 2 2
FTQ Weight = 1 Supplier Complaints Weight = 1 Online Containment Weight = 1 Scrap $ Weight = 1Final Assembly 0.237 Switch A Supplier A 0.368 Noise 0.239 Shaft 0.262Switch B Failure 0.178 Switch A Supplier B 0.173 Switch A Not Seated 0.190 Bracket A 0.109
Lever Defect 0.160 Housing Supplier 0.112 Component C Not Seated 0.149 Mount Pad 0.097Cosmetic Defect 0.091 Lever Supplier 0.089 Component A Not Seated 0.123 Motor 0.097
Missing Component A 0.077 Component A Supplier 0.081 Switch B Wrong Setting 0.079 Label 0.090Missing Component B 0.073 Component B Supplier 0.053 Switch B Not Seated 0.048 Pivot Mechanism A 0.082
Bracket Defect 0.067 Switch D Supplier 0.048 Lever Missing 0.045 Tie Down 0.079Lever Defect 0.060 Switch A Supplier C 0.038 Switch C Not Seated 0.045 Bracket B 0.067
Component A Defect 0.057 Component C Supplier 0.038 Component D Missing 0.043 Pivot Mechanism B 0.064Component B Not Seated 0.038 Bracket Assembly 0.052
Total 1 1 1 1
Look for leverage by grouping common failures
Boxes are all “Wrong or Missing parts”
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Stacked Bar Pareto by common failure
0
0.5
1
1.5
2
2.5
3
3.5
Switch A
Fai
lure
Wro
ng/Mis
sing P
arts
Switch D
Def
ect
Switch B
Fai
lure
Lever
Def
ect
Switch C
Def
ect
Noise
No
rmal
ized
Sco
re
Scrap $Online InspectionSupplier ComplaintsFTQWarranty $Warranty Incidents %
Customer B ComplaintsCustomer Shut Down
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0
1
2
3
4
5
6
7
All Switch Failures Wrong/Missing Parts Lever Defect Noise
No
rmal
ized
Sco
re
Scrap $Online InspectionSupplier ComplaintsFTQWarranty $Warranty Incidents %Customer B ComplaintsCustomer Shut Down
Stacked Bar Pareto by common event
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Normalized Weighted Sum
%
0
0.5
1
1.5
2
2.5
3
3.5
4
EPS - RACK & PINIONMACHINING
EPS - RACK & PINIONASSEMBLY
EPS - I-SHAFT &JACKET MACHINING &
ASSEMBLY
EPS - COLUMN FINALASSEMBLY
EPS - ASSIST MECHASSLY & WORM
MACHINING
EPS - MOTORCONTROLLER &
SHAFT & HOUSING
No
rmal
ize
d S
core
Build Perf.
Inspectors
FTQ
Overtime
Scrap
Maint.
Tools
Processing
0
0.5
1
1.5
2
2.5
3
3.5
4
EPS - RACK & PINIONMACHINING
EPS - RACK & PINIONMACHINING
EPS - RACK & PINIONASSEMBLY
EPS - RACK & PINIONASSEMBLY
EPS - I-SHAFT &JACKET MACHINING &
ASSEMBLY
EPS - I-SHAFT &JACKET MACHINING &
ASSEMBLY
EPS - COLUMN FINALASSEMBLY
EPS - COLUMN FINALASSEMBLY
EPS - ASSIST MECHASSLY & WORM
MACHINING
EPS - ASSIST MECHASSLY & WORM
MACHINING
EPS - MOTORCONTROLLER &
SHAFT & HOUSING
EPS - MOTORCONTROLLER &
SHAFT & HOUSING
No
rmal
ize
d S
core
Build Perf.
Inspectors
FTQ
Overtime
Scrap
Maint.
Tools
Processing
Production losses
Can be used where diverse metrics exist
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Summary
Lean and Six Sigma both reduce variation
You must know a problem exists to solve it– Develop “Eyes for Flow” and “Eyes for Waste”
– Make regular observations
– Observed Normal vs. Abnormal activity
– Establish standardized work
– Make interruptions in flow visible ( small lot )
Learn to “see” thru database smog using– Select Focus
– Select Metrics
– Analyze for leverage
– Apply the appropriate problem solving tool
Normalized
Weighted
Sum