Managing Complexity

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How Donnelly manages being one of the most complex injection molding companies on the planet.

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Managing Complexity

  1. 1. Managing Manufacturing Complexity through Innovative Processes A Donnelly Custom Manufacturing Case Study Sam Wagner, Director of Advanced Manufacturing Donnelly Custom Manufacturing Company IndustryWeek ’09 Best Plants Conference Nashville, TN Tuesday, April 28, 2009 1
  2. 2. The Donnelly story • Donnelly was founded in 1984 as a custom, plastic injection molding company • A small, one-story building in Alexandria, MN • Four presses, eight people, no customers • One idea: to focus on short run, close tolerance parts 2
  3. 3. The Donnelly story • Today, the organization is over 225 people strong – Best-in-class technologies and quality systems – 24/7 operations, 110,000 square foot facility with 33 presses – 700+ materials used – 2700+ active molds and 3200+ active parts – Median run time of less than 8 hours – 40 to 50 changeovers per day – Industry-leading and world-renowned OEM customers – $29+ million in revenues 3
  4. 4. The Donnelly story 30 30 Sales Dollars Orders Shipped 25 25 20 20 15 15 10 10 5 5 0 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2.0 Sales Dollars/Order Shipped 1.5 1.0 0.5 4 0.0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
  5. 5. The Donnelly story 200 35 Molding Hours Run # of Presses Available 30 150 25 20 100 15 10 50 5 0 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 7,000.0 Hours Run /Press Available 6,000.0 5,000.0 4,000.0 3,000.0 2,000.0 1,000.0 5 0.0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
  6. 6. The Donnelly story • Plastics News Processor of the Year Finalist 2007 6
  7. 7. What is short run? • Short run is not defined by part quantities/EAUs • Short run is defined by the number of hours per production run • Donnelly’s short run – Average production run is 11 hours – Median production run is 7+ hours – Production runs range from .25 to 240 hours – Short run is defined as more than one changeover per week, per press – We average 9 changeovers per week, per press 7
  8. 8. Why short run? • It is not possible to do short and long run well – Short run focus is on changeover optimization – Long run focus is on process optimization • A need exists for a supplier committed to short run expertise – Pressure to reduce inventory, but continue to meet stringent delivery dates – A supplier with short run expertise allows these vital needs to be met economically 8
  9. 9. 9
  10. 10. Donnelly’s mission and values • Vision: To be the recognized leader in setting the standards in short run molding and related services • Mission: To deliver good products on time • Core values – Do your best – Treat others the way you want to be treated – Don’t be afraid to ask for help – Always work as a team 10
  11. 11. Donnelly’s complexity factor • Complexity factor = active molds x materials used x presses • Comparative data – Plante Moran’s 2004 North American Study of the Plastics Molding Industry 0 Injection Molding Over 25% All participating Automotive Over $25MM Donnelly Medical Bottom quartile Over 25% companies in sales Over 50% 50th percentile Upper quartile 11
  12. 12. Complexity-driven challenges • Setting and holding priorities – making decisions • Shooting at a moving target – planning • Communication, alignment and teamwork • Training and continuous improvement 12
  13. 13. Addressing the complexity factor • Process orientation with measurements • Peer accountability – Manufacturing Launch (40 measures) – Manufacturing War Room – Critical Success Factors – Visual Management (12 key measures – 30 elements) Complexity • Constancy of purpose • Attention to detail – Short Run – Checklists – Quality Management System (incl. MRT) – Supervisor Audits – Lean Manufacturing Techniques – Team Leader audits – Training & Workforce Development – Pricing Volatility 13
  14. 14. Addressing the complexity factor • The cosmic Law of Nature g s s in e – Nothing is static o gr Pr Re g re ssi ng 14
  15. 15. Process orientation with measurements • Manufacturing launch process – Developed in 1999 • Hard work & diligence wasn’t enough with 250+ molds/year – 80 % of tooling launches will have no problem, but it is the 20 % that a highly defined process allows you to succeed at – Defined, comprehensive and measured so output is repeatable, reliable and profitable – Avoids the finger pointing at hand-offs • Responsibilities are defined and reviewable 15
  16. 16. Process orientation with measurements • Manufacturing launch process – Owned by the people who hold responsibility – Result is unique 3-pronged engineering model • Project Engineer on-site at customer location for design and mold-build support • Manufacturing Launch Engineer who oversees sampling, measurement and approval process • Process Engineer for day-to-day production – Value of a highly defined process is that you can evaluate and change it • Manage, measure and improve it 16
  17. 17. Donnelly Manufacturing Launch Process (2)
  18. 18. Peer accountability • Daily War Room meetings – This is a problem identification, not problem solving meeting – Action items are assigned with peer accountability to resolve them within 48 hours 18
  19. 19. Peer accountability • Daily War Room meetings Review last 24 hours Look ahead to the next 24 hours • Safety • Set priorities • Changeovers & efficiency • “At risk” shipments • Hours run & efficiency • High scrap jobs • Down time • Mold issues • Scrap • Problem jobs • Action items 19
  20. 20. Constancy of purpose • Donnelly quality system – Deliver good products on time – ISO 9001:2000 – ISO 13485:2003 Management Review Team • Management Review Team – Corrective action process Corrective Action Process RCA What other Why was the parts might defective part have this produced? same issue? Why was the defective part shipped? 20
  21. 21. Constancy of purpose • The Law of Prosperity/ Law of Compensation – What we make is in direct proportion to the quality and quantity of the services we deliver 21
  22. 22. Constancy of purpose • Results – Value added per employee – 14 years without increasing press rates 22
  23. 23. Attention to detail • 5S – Sort: Separate the necessary from the unnecessary – Set in Order: Put everything in its place, label its place – Shine: Keep everything clean, helps identify potential problems – Standardize: Defines how a task should be performed, sets the performance standard – Sustain: Most important – requires regular inspections, with action items identified, assigned, and addressed “Good factories develop beginning with the 5S’s. Bad factories fall apart beginning with the 5S’s.” Hirouki Hirano 23
  24. 24. Attention to detail • Early 5S process results Old Setup Carts New Setup Carts 24
  25. 25. Attention to detail • 5S event results – set in order Aisles before 5S Aisles after 5S 25
  26. 26. Attention to detail • 5S color coding Green White and blue Finished goods or inserts Trash Mobile Eqpt 26
  27. 27. Attention to detail • 5S: Middle section: Green – Notice the numbers on the wall and on equipment (204) – Numbers on the floor as well 27
  28. 28. Attention to detail • 5S: Back section: Orange 28
  29. 29. Attention to detail • 5S audit process – Next shift team leader audits section with current shift team leader – Record results on current shift schedule showing assignments – Highlight in green if OK, pink if a problem with notes on the bottom – Hang schedule on current shift clip board for supervisor to review 29
  30. 30. Attention to detail • 5S process benefits – Much more than just housekeeping – Develops the discipline to follow through – Teaches employees to work in teams – Creates a safer workplace – Attacks quality issues – Attacks waste of searching for things – Clean workplace is more inviting, making it easier to recruit and retain workers (and customers) – 5S is a fundamental to Lean 30
  31. 31. Attention to detail • 5S: Visual workplace progression Visual Guarantees Visual Controls Visual Measures Visual Standards Visual Order 31 Ref. Visual Workplace Visual Thinking, Gwendolyn D. Galsworth
  32. 32. Success in short run • Continuously develop and improve upon its leadership position in short run • Occurs as a result of aligning company’s people, processes and actions with business strategy • Donnelly employees’ ability to improve upon its hedgehog concept, help the company to grow and thrive • All actions are tied to processes rather than events, ensuring the business output is repeatable, reliable and profitable 32
  33. 33. Thank you Questions? Sam Wagner, Director of Advanced Manufacturing Donnelly Custom Manufacturing Company IndustryWeek ’09 Best Plants Conference Nashville, TN Tuesday, April 28, 2009 33

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