Process Optimization & Engineering Problem Solving

Your Gateway to
Operational Excellence
© PSL 2010 All Rights Reserved
Process Optimisation &
Engineering Problem Solving
26-27 April 2010 JW Marriott Hotel, Kuala Lumpur, Malaysia

Your Gateway to
Vision
World-Class
Operations
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Your Gateway to
The Goal of Operational Excellence is…
“Getting the right things
to the right place,
in the right quantities,
at the right time and
at the desired quality,
the first time,
while minimizing waste
and being
open to embrace change.”

Your Gateway to
Performance Excellence – Recognition
Baldrige Award –
The Malcolm Baldrige National
Quality Award, created by an
Act of Congress in 1987, is
the highest level of national
recognition for performance
excellence that a U.S.
organization can receive.
Baldrige criteria
2010-11
1. Leadership
2. Strategic Planning
3. Customer Focus
4. Measurement, Analysis
and Knowledge
Management
5. Workforce Focus
6. Process Management
7. Business Results
Malcolm Baldrige

Your Gateway to
Activity – Batch (Push) Manufacturing
Flow Simulation
Batch Size = 6
Airplane Company

Your Gateway to
Business Process Management
• A business process is a collection of interrelated tasks, which solve a
particular issue.
• Three types of Business Processes:
• Management processes - the processes that govern the operation of a
system.
– Corporate Governance
– Strategic Management
– Business Integration
– Balanced Business Systems
– Balanced Score Card
• Operational processes - these processes create the primary value stream,
and they are part of the Core Business.
– Value Chain Management
– Quality Management
– Performance Management
• Supporting processes - these support the core processes. Examples
include Accounting, Recruitment, IT-support etc.

Your Gateway to
Session 3
Value versus Waste

Your Gateway to
Value (VA) versus Waste (NVA)
Value Adding (VA)
Customer is ready to pay for
Non Value Adding But Required
(NVA-R)
Legal requirements, such as
documentation etc
Non-Value Adding (NVA)
Customer is not interested in paying
for, such as motion, transportation,
inventory etc

Your Gateway to
Over Production
• Making more than required
(WIP or FG)
• Keep the machines running
• Changeover times are high
• Buffer stocks
• Production is NOT demand
drivenThis document is a partial preview. Full document download can be found on Flevy:

Your Gateway to
Transportation
• Movement of materials
and information
• WIP
• Poor Layout
• Large Batch sizes
• Inadequate WH systems
• Too many inspections

Your Gateway to
Excessive Processing
• Doing more than required
which doesn’t add value from a
customer perspective
• More steps than required
• Excessive paper work
• Lack of clear communication
• Lack of SOP’s
• Lack of understanding of what
customer needs

Your Gateway to
Activity –Small Lot Manufacturing
Flow Simulation
Batch Size = 3
Airplane Company

Your Gateway to
VSM – Current State

Your Gateway to
Activity
• Use paper and pencil to draw a simple current
state value stream map
• Identify types of wastes and opportunities for
improvement

Your Gateway to
Steps of 5S
SORT is the removal of unnecessary
items from work place
SET-IN-ORDER “A place for everything
and every thing in its place”
SHINE involves cleaning to inspect the
workplace and equipment for defects
and safety hazards
STANDARDISE is creating visual
controls and guidelines for keeping
the workplace organized, orderly,
and clean
SUSTAIN involves training and
instructing employees to follow the
guidelines created in the standardize
step.

Your Gateway to
Shining
• There are two parts to
Shining:
1.Initial cleaning – the
work area is ‘blitz’
cleaned
2.Regular cleaning and
inspectionThis document is a partial preview. Full document download can be found on Flevy:

Your Gateway to
Examples of 5S

Your Gateway to
Some more examples…
Communicating
performance
through visual
boards in the
factory and
office provides
feedback for all
to seeThis document is a partial preview. Full document download can be found on Flevy:

Your Gateway to
TPM
Total Productive Maintenance –
A system used to maximize
the effectiveness and abilities
of equipment through
properly planned upkeep
This system broadens the
scope of maintenance to
include operators
(autonomous maintenance),
IT, management, etc.

Your Gateway to
Equipment and process improvement
Equipment losses (6 Big Time Losses)
Downtime
loss
Speed loss
Quality loss
Equipment failure / breakdowns
Set-up / adjustments
Minor stopping / idling
Reduced speed
Process errors
Rework / scrap

Your Gateway to
OEE Calculation
Breakdown losses
Set-up and adjustment
losses, Operator losses
Overall Equipment
Effectiveness (OEE)
Availability % x Performance % x Quality %
(Total hours planned – lost
time) /
Total hours planned
Actual machine speed
/
Design machine speed
Number of good
products /
Total products made
Idling losses
Minor stoppage losses
Reduced speed losses
Defect and rework
losses
Start-up losses

Your Gateway to
Takt Time
The time to produce a single component or
entire product based on customer demand
• Sets the beat of manufacturing
• Sets the paces for work
Pace of
Sales
Pace of
Production

Your Gateway to
Example (cont’d)
• How do you use it?
34 sec cycle time
18 sec takt time
= 2 workers needed
This is how resources are properly
allocated to meet customer demand:
•Anymore workers than 2 = Over production
•Any less than 2 workers = Not meeting customer demandThis document is a partial preview. Full document download can be found on Flevy:

Your Gateway to
Continuous Flow
Traditional Batch Manufacturing
Lead time:
• 30+ min for total order
• 21+ min for first piece
• 1 min cycle time per process
Continuous Flow Manufacturing
10 min 10 min 10 min
12 min
Lead time:
• 12 min for total order
• 3 min for first piece
• 1 min cycle time per process

Your Gateway to
Case Study – Tank Manufacturing
• Production output –
Increased by 100%.
• Lead Time to Customer –
Reduced by 50% overall
(a tank every 4 hours).
• Labour component –
Reduced by an average of
26.5%.
• Cost Savings in Labour –
Average 20%.
OFFICE
Bases /Tiers Tops Tank

Your Gateway to
Categories of Setup Tasks
• On-line Tasks: Setup tasks
performed while the equipment
has halted the production of parts
• Off-line Tasks: Setup tasks
performed while the equipment is
producing good parts, whether it
be on the previous order or the
new order
Note: When calculating setup time it
only includes the sum of the on-
line tasks

Your Gateway to
Batch vs. Production Leveling
DEMAND
A = 120
B = 150
C = 210
Day 1
Day 2
Day 3
8 hrs
Product A = 120
Product B = 150
Product C = 210
Batch
• Batch production focuses on completing each batch
at once to avoid multiple changeover time losses
• Batch leads to under utilized workforce and
equipment on some days and expensive overtime on
others

Your Gateway to
Everyday Example of Pull System

Your Gateway to
Kanban
Kanban is a tool used to
regulate flow in a
manufacturing
environment, which aids
in the implementation of a
pull system.
It acts as a physical signal
of what is needed, when it
is needed, and how much
is needed. This reminder
is necessary before an
upstream process may
continue production.
3 Types
1. Withdrawal Kanban
2. Production Kanban
3. Signal Kanban

Your Gateway to
Session 7
Quality and Reliability for TQM

Your Gateway to
Where is Error Proofing Used?
• Anywhere there is
an opportunity to
prevent error
– Office
– Design
– Manufacturing

Your Gateway to
Benefits of Standardized Work
• Provides a baseline to improve from: Set
procedures which capture and sustain
improvements made with the other lean tools.
• Provide Operational Stability: Performing the
task the same way every time…
– Improves quality
– Increases efficiency
– Improves safety

Your Gateway to
- Defining Quality Standards

Your Gateway to
Session 8
Road Map for Becoming World-Class

Your Gateway to
Roadmap to Achieving a
Lean Enterprise
• Assess the current process
• Understand the customer's true desires and future market trends
• Obtain buy-in from senior management
• Develop sound knowledge of the manufacturing process
• Apply Lean tools and techniques at the most critical processes
• Spread out the Lean implementation to all auxiliary areas until a
fully integrated manufacturing process is obtained
• Implement Lean with suppliers
• Implement Lean with downstream supply chain organizations,
including customers
• Apply Lean Thinking into off-line and nonmanufacturing areas
(Engineering, Design, Marketing, etc.)

Your Gateway to
Lean Metrics
• Value added % (per direct labour hour or person)
• DIFOT (On Time Delivery)
• Inventory Turns or IQR
• OEE (Overall Equipment Effectiveness)
• Throughput (Parts per man-hour)
• First time through Capability (First time quality
yield)
• Safety (injury / accidents)
• Cycle Time (Lead Time to Customer)
• Equipment use based on customer demand

Your Gateway to
Leading Change
• Provide Direction
• Lead Courageously
• Influence Others
• Foster Teamwork
• Motivate Others
• Coach and Develop Others
• Champion ChangeThis document is a partial preview. Full document download can be found on Flevy:

Your Gateway to
Lean Assessment
OperationalExcellence Score
5S(Sort,Set-to-Order,Shine, Standardise,Sustain) 1 2 3 4 5 6 7 8 9 10
Quality Processes 1 2 3 4 5 6 7 8 9 10
Work Cells /Areas asProfitCentres 1 2 3 4 5 6 7 8 9 10
Visual Controls 1 2 3 4 5 6 7 8 9 10
StandardWork (PreciseProcessing) 1 2 3 4 5 6 7 8 9 10
Total ProductiveMaintenance 1 2 3 4 5 6 7 8 9 10
Just-in-Time
ContinuousFlow 1 2 3 4 5 6 7 8 9 10
Pull Systems 1 2 3 4 5 6 7 8 9 10
Production Levelling 1 2 3 4 5 6 7 8 9 10
Quick Changeovers 1 2 3 4 5 6 7 8 9 10
HumanResources
ContinuousImprovement 1 2 3 4 5 6 7 8 9 10
Training 1 2 3 4 5 6 7 8 9 10
Supplier / Customer Alliances 1 2 3 4 5 6 7 8 9 10
CircleYour Score

Your Gateway to
Further References
Thank You!
www.lean.org
www.strategosinc.com
www.gemba.com
www.solutions4productivity.com

Your Gateway to
Quality Assurance
• Question
Do we guarantee that the
product or process we
are working on is fit for
purpose for the next
step in the
manufacturing, design
or administration
activity the 1st time?
The Goal is Zero Defects.
Don’t Make Defects – Don’t Pass on Defects – Don’t Accept Defects

Your Gateway to
What is a Process?
• A process is the set of activities
necessary to accomplish a task or
produce an output.
• A Process is …
– The work we do
– Can be broken down into a
repeatable sequence of events
– Consists of connected events
that lead to predictable results
Customer
Inputs
Supplier
Inputs
Process Steps
Outputs
CustomerThis document is a partial preview. Full document download can be found on Flevy:

Your Gateway to
Session 9
FMEA (Failure Modes and Effects Analysis)

Your Gateway to
Evaluating the Risk of Failure
• The relative risk of a failure and its effects is
determined by three factors:
– Severity – the consequence of the failure
should it occur;
– Occurrence – the probability of frequency of
the failure occurring;
– Detection – the probability of the failure
being detected before the impact of the effect
is realised.

Your Gateway to
The 10 Steps for an FMEA
1. Review the process;
2. Brainstorm potential failure modes;
3. List potential effects of each failure mode;
4. Assign a severity rating for each effect;
5. Assign an occurrence rating for each failure mode;
6. Assign a detection rating for each failure mode and / or
effect;
7. Calculate the risk priority number (RPN) for each effect;
8. Prioritise the failure modes for each action;
9. Take action to eliminate or reduce the high-risk failure
modes;
10.Calculate the resulting RPN as the failure modes are
reduced or eliminated.

Your Gateway to
Occurrence Rating Scale
Note: Modify this rating to suit your industry; If Cpk < 1.33, the process is incapable of repeatability

Your Gateway to
Activity
• In groups of 2, select a product or process and
brainstorm Failure Modes and their Effects.
• Assign Severity, Occurrence and Detection ratings
and calculate RPN.

Your Gateway to
PDCA
• Plan what we are going to do.
• Do try out or test the
solutions
• Check to see if the
countermeasures you tried
out had the effect you hoped
for.
• Act on what you have
learned.

Your Gateway to
7 Quality Tools
• These are the most fundamental quality control (QC) tools. They
were first emphasized by Kaoru Ishikawa, professor of
engineering at Tokyo University and the father of “Quality Circles.”
• Cause and Effect Diagram: (also called Ishikawa or fishbone chart).
• Check Sheet: A structured, prepared form for collecting and analyzing
data.
• Control Charts: Graphs used to study how a process changes over time.
• Histogram: The most commonly used graph for showing frequency
distributions, or how often each different value in a set of data occurs.
• Pareto Chart: Shows on a bar graph which factors are more significant.
• Scatter Diagram: Graphs pairs of numerical data, one variable on each
axis, to look for a relationship.
• Stratification: A technique that separates data gathered from a variety
of sources so that patterns can be seen (some lists replace "stratification"
with "flowchart" or "run chart").

Your Gateway to
Fishbone Diagram Continued…
When to Use a
Fishbone Diagram?
When identifying possible
causes for a problem.
Especially when a
team’s thinking tends
to fall into ruts.

Your Gateway to
Check Sheets
• A check sheet is structured,
prepared form for collecting and
analyzing data. This is a generic
tool that can be adapted for a
wide variety of purposes. More
than 50 observations should be
available to be charted for this
tool to be really useful
When to Use a Check Sheet ?
– When data can be observed and collected repeatedly by
the same person or at the same location.
– When collecting data on the frequency or patterns of
events, problems, defects, defect location, defect causes,
etc.
– When collecting data from a production process.

Your Gateway to
Flow Charts
Flowcharts describe a process
in as much detail as possible
by graphically displaying the
steps in proper sequence.
A good flowchart should show all
process steps under analysis
by the quality improvement
team, identify critical process
points for control, suggest
areas for further
improvement, and help
explain and solve a problem.

Your Gateway to
Root Cause Analysis
Root cause analysis (RCA) is a
methodology for finding and
correcting the most important
reasons for performance
problems.
It differs from troubleshooting and
problem-solving in that these
disciplines typically seek solutions
to specific difficulties, whereas
RCA is directed at underlying
issues.

Your Gateway to
Steps in RCA
• Identify all possible causes of
the problem
• Construct a Cause and Effect
Diagram
• Select the root cause(s)
• Verify the root causes with
the dataThis document is a partial preview. Full document download can be found on Flevy:

Your Gateway to
5 Why’s
Why?
Problem
or Effect
Direct
Cause
Why?
Contributing
(Intermediate)
Cause
Contributing
Cause
Why?
Contributing
Cause
Why?
Contributing
Cause
Why?
Root
Cause
Contributing
Cause
• Generally, 3-5 levels of “Why” is
sufficient to get to a reasonable Root
Cause
• Beyond 5 levels usually yields too
narrow or too specific details

Your Gateway to
Session 11
5 Steps to Problem Solving –
A Systematic Approach

Your Gateway to
Step2: Analyse
2a) Identify Root
Cause (s) of the
Problem – Collecting Data
2): Verify Each Root
Cause
Step 2c: Identify the
Root Cause (s) most
Responsible for the
Problem
–Establish a purpose
before collecting data
–Isolate the cause to be
verified
•Tools that can be
used for Quality
improvement are –
–Determine if the
indicators are reliable
–Reduce or eliminate
this cause
–Check sheet
–Track all the data
needed
–Determine the effect of
your action on the
problem
–Histogram
–Record the data carefully –Bar Chart
–Pareto Chart

Your Gateway to
Step 3c: Plan the Implementation of Selected
Solutions
Major
Elements
What to Consider
People Whose support will be needed to successfully Implement your solutions?
Materials
Will your solutions require that new or different materials be utilized?
Where do they come from? Who will procure them?
Methods
How will those Involved learn how to implement what you propose? The
solutions you plan to Implement represent a change from the way things
are currently being performed.
How will you know if your solutions are working? The effectiveness of each
solution must be measured to Identify those solutions that are effective
and those that aren’t
Machinery /
Equipment
Will your solutions require that new or different equipment be utilized?
Where will it come from? Who will procure It? How will others be trained
to operate it?

Your Gateway to
Step 4: Test-Implement
4a – Implement the
Plan
4b: Help the
Solution Succeed
4c: Show Measurable
Improvement
4d – If measurable
improvement is not evident,
return to Step 1c
–Communicate the
Plan
–The most convincing way to
prove that implemented
solutions are working is to show
measurable improvement in the
problem area.
–Be specific
–Monitor the Plan
Implementation
–Describe a problem not a
symptom
–Reinforce Each
Other
–Relate the current situation to
what is desired
–Adjust When
Necessary
–Show the effectiveness of
implemented solutions with
indicators one for overall
solutions and for each for
individual solution.
–Be free of causes and
solutions
–A test-implementation
also provides useful
information that can be
used to ensure the
success of the actual
implementation when it
occurs.
–A test-implementation
will provide you and
others an opportunity to
assess the effectiveness
of your solutions and
the plan to implement
them.
–The best method of displaying
this measurable improvement is
by using the tools for quality
improvement, like a Line Graph,
Pareto Chart, Pie Chart, Bar
Chart, Histogram or Check
Sheet.

Your Gateway to
ZQC (Zero Quality Control)
• ZQC is a quality control approach for
achieving “zero” defects. Zero refers to
the goal of this approach – to produce
products with “0” defects
• ZQC is based on the principle that
defects are prevented by controlling the
performance of a process so that it
cannot produce defects – even when a
mistake is made by a machine or person.
• ZQC approach doesn’t point fingers at
people. It recognises that machines and
people do make mistakes sometimes,
and it finds ways to keep those errors
from turning in to defects.
• ZQC is a method of mistake-proofing a
process.

Your Gateway to
Activity
• What problems or hassles do you experience in
your job as a result of defects that occur?
• What kinds of things can cause defects to happen
in your process?

Your Gateway to
Errors and Defects
Are Errors and Defects the same?

Your Gateway to
Informative Inspection
• Informative inspection overcomes
the 2nd problem of judgement
inspection by giving feedback to
the process.
• The focus here is on alerting the
defect-producing process about
the problem as quickly as
possible
• Three ways to perform an
informative inspection
1. SQC (Statistical Quality
Control)
2. Successive check of each
product
3. Self-check of each product

Your Gateway to
Self-Checks
• In this method, operators
check their own work before
passing on the products to the
next process
• The feedback here is much
quicker
• It’s hard to catch all defectsThis document is a partial preview. Full document download can be found on Flevy:

Your Gateway to
Introducing Poka-Yoke…
• Pronounced as POH-kah YOH-kay
• Serve two purposes
– 100% inspection
– Quick feedback for corrective
action
• A truce ZQC uses poka-yoke
systems in source inspection
• Poka-yoke systems are also used
in informative inspections, where
the check happens immediately
after the process, either as self-
check or successive check.

Your Gateway to
Methods for using Poka-Yoke
2. Fixed-Value Method can be
used when a fixed number of
parts must be attached to the
product or when a fixed
number of repeated operations
needs to be done at a process
station.
In this method, a device counts
the number of times
something is done and signals
or releases the product only
when the required number is
reached. E.g., limit switches
Improves Assembly Quality by
Enabling Bolt Counting of
Complete Cycles to Prevent
Missed Fasteners

Your Gateway to
Types of Sensing Devices
• Three categories of sensing devices are used in
poka-yoke systems
1. Physical Contact Sensing Devices
2. Energy Sensing Devices
3. Sensors that can detect change in physical
conditions

Your Gateway to
Other Energy Sensors
• Fibre sensors – detect motor revolutions, colour coding marks.
• Area Sensors – detect random breaks in a fixed area, e.g., hands
placed in a hazardous area or parts dropping from a conveyor.
• Position sensors – control cylinder strokes or determine screw
heights.
• Dimension sensors – ensure correct product dimensions.
• Vibration sensors – detect product ejection errors, width distortion,
seam position, or start of processing.
• Displacement sensors – detect and measure warping, thickness, and
fluid level heights.
• Tap sensors – detect incomplete tap screw machining
• Metal passage sensors – detect metal in motion.
• Colour-mark sensors – detect coloured marks or differences in colour
• Double-feed sensors – detects two products fed at the same time.
• Weld-position sensors – detect joints such as weld lines in coil stock,
seams in pipes and cans, or splices in wires.

Your Gateway to
Examples of Energy Sensors

Your Gateway to
Activity
• Can you think of situations in your workplace in which energy-
sensing devices and sensors that can change in physical
conditions might be useful? How?
• What about devices that link to poka-yoke sensors? Which of
these might be useful and why?

Your Gateway to
Application of Poka-Yoke Systems
Fixed-Value Method: Making sure all bolts are installed

Your Gateway to
Application of Poka-Yoke Systems
Test for Un-Cut Grooves

1
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Process Optimization & Engineering Problem Solving

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