The document provides steps for quickly improving a new department: 1. Create a current state process map to understand the flow. 2. Identify bottlenecks limiting capacity. Address bottlenecks first by implementing OEE and SMED to reduce changeover times. 3. Create department metrics to measure waste like non-value added time, workload variation, and inventory levels. Implement processes like DMAIC or PDCA to continuously improve.

1. The short version with some examples
Stephen Sikorski 2015
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2. It has occurred to me that most of the times in my career that I have
been given the added responsibility of another department to run, a
pattern existed between those departments I would be given :
• The demand on the area far exceeded the current
processes capabilities.
• The effectiveness & efficiency of the area were seriously in
question.
• There were no measurement metrics in place.
• Very few people understood the process despite the
process being well documented.
• Change needed to come very very quickly. (Usually a
matter of weeks)
Stephen Sikorski 2015
The following lays out the steps that I have taken a few times over
in order to quickly succeed in managing a new department.
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3. Stephen Sikorski 2015
Step 1: Create a current state value stream map (If you
are not sure how, I suggest reading the book Learning to See by Mike Rother and John Shook the book is
very short yet very informative)
Example not actual
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4. Stephen Sikorski 2015
Step 2: Identify the area bottleneck(s) (constraint)
• If it is not apparent from the current state map use the following:
Service or Product A B C D
#1 0.5 0.6 2.0 1.5
#2 2.0 0.0 3.0 4.0
#3 0.0 3.0 4.0 2.0
Demand for week 1
#1 20 10 12 40 30
#2 15 30 0 45 60
#3 25 0 75 100 50
Total Hours Reqd: 40 87 185 140
Capacity Hours Available/Wk 40 80 160 160
Demand for week 2
#1 30 15 18 60 45
#2 30 60 0 90 120
#3 0 0 0 0 0
Total Hours Reqd: 75 18 150 165
Capacity Hours Available/Wk 40 80 160 160
(Requirements are hours per unit)
Resources:
Calculated resources required (week)
Calculated resources required (week)
Create a constraint map in excel using the cycle time data collected from the
value stream map.
Example not actual
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Step 3: Address the constraints (For repeat
bottlenecks Implement OEE and perform SMED)
To implement OEE
I. Brainstorm with equipment operator and
maintenance personnel all of the reasons the
equipment may stop.
II. Create the excel sheets on the following pages.
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6. Stephen Sikorski 2015
OEE Entry Sheet Machine: # Operator:
DatePart/Item Number
Run/Batch/
Lot
Number
Start
Time
End
Time
Run
Quantity
Rejects
Total Run
Time
(min)
Stop
Time
End Stop
Time
Stopagge
Reason
Total
Stop
Time
(min)
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Operating Down
III. Have equipment operator begin filling in the form you
made. (Make sure this excel sheet auto fills to and from the
excel sheets on the following pages). Watch the left side of
this page for variation in run times and the right side for
variation in and types of stoppages.
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Number Reason Date
Sum of
Operating
Time (min)
Planned
Production
Time (min)
Down
Time
Actual
Down
Time
A 0 0 0
B
C
D
E
F
G
H
I Categories Time(mins) Percentage
J Total Operational Time 0 #DIV/0!
K Total Stoppage 0 #DIV/0!
L 0 #DIV/0!
M 0 #DIV/0!
N 0 #DIV/0!
O 0 #DIV/0!
P 0 #DIV/0!
Q 0 #DIV/0!
IV. This excel sheet should feed into and from the
excel sheet and chart on the following pages.
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Shift Length Hours = 0 Minutes
Short Breaks Breaks @ 10 Minutes Each = 0 Minutes Total
Lunch Break Breaks @ 30 Minutes Each = 0 Minutes Total
Down Time Minutes
Ideal Run Rate PPM(Parts Per Minute)
Total Parts 0 Parts
Reject Parts 0 Parts
Variables Calculation Result
Planned
Production Time Shift Length - Breaks 10 Minutes
Operating Time Planned Production Time - Down Time 0 Minutes
Good Parts Total Parts - Reject Parts 0 Parts
Factors Calculation My OEE%
Availability Operating Time / Planned Production Time
Performance (Total Parts / Operation Time) / Ideal Run Rate
Quality Good Parts / Total Parts
Overall OEE Availability x Performance x Quality
SHIFT REPORT
V. This is the third OEE excel sheet (which tells
your actual OEE)
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VI. Address the top 80% of your stoppage drain. (This
auto fills from your second excel sheet)
100.00%
27.21%
8.55% 2.56%
11.11%10.26%
0.00%0.00%
67.52%
0.00%0.00%0.00%0.00% 0.00%0.00%
0.00%0.00%0.00%
0.00% 0.00%
0.00%0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
0
50
100
150
200
250
300
350
400
450
500
mins
Categories
Total Planned Production Time, Total Stoppage Time, and Subcategories
of Stoppage Time
Time(mins)
Percentage
Example not actual
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SMED SETUP REDUCTION OBSERVATION FORM Stephen Sikorski
Dept. Required Setup Tools: Standard Setup Time :
Machine
Operrator
Actual Time Target Time
No Task (P) (R) (L) (A) Internal External Improvement Internal External
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
( P)- Preperation- Actions performed to support the change over.
( R)- Replacment -This includes mounting, replacing, securing, attaching tools or parts.
( L)- Locating- Calibrations, measurments, setting, aligning.
( A)- Adjusting- Actions repeted in order to attain correct machine setting.
VII. You will most likely have to perform a SMED (single minute
exchange of dies) in order to get your changeovers under control
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VIII. Use the daily pareto chart as an operator level
metric. (Teach the constraint operator to identify
variations in the data as he/she fills in the form
and report them immediately).
IX. Congratulate and reward the operator we he/she
has very low stoppage time and when he/she
stops and points out variations.
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Step 4: Create department level metrics
I prefer the following formulas when creating my metrics:
𝑻 𝑻 − 𝑪 𝑻
𝑻 𝑻
[%]
Where:
T/T – takt time of the value
stream
C/T – cycle time of the
process
Passive Waste (Muri) metric
shows the potential overload
and underutilization of
employees and equipment.
𝑵𝑽𝑨
𝑪 𝑻
[%]
Where:
NVA – non-value added
activity time
C/T – cycle time of a
process
Shows (Muda) the
percentage of non-value
added activities being
performed.
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𝑨 𝑻 − 𝑺 𝑻
𝑨 𝑻
[%]
Where:
A/T - daily available time
S/T - standard available time
Shows (Muri) actual over
and underutilization of
employees or equipment.
I generally use this as a
check of the OEE data.
𝜎 𝑤𝑜𝑟𝑘𝑙𝑜𝑎𝑑
𝑥 𝑤𝑜𝑟𝑙𝑜𝑎𝑑 [%]
Where:
𝜎 𝑤𝑜𝑟𝑘𝑙𝑜𝑎𝑑 − 𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑
deviation in operators cycle
times within the value stream
𝑥 workload − average
operators cycle time within the
value stream
Passive Waste (Mura) metric
shows the variation in
workload between operators in
a single process or a value
stream.
department level metrics
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𝑨 𝑻 −𝑫𝑳
𝑨 𝑻
[%]
Where:
A/T – available time
DL – direct labor time
Shows the percent of
time wasted on non-
production activities.
𝑫𝑳 − 𝑺 𝑻
𝑫𝑳
[%]
Where:
S/T – standard time
DL – direct labor time
Shows the percentage
of time wasted due to
poor efficiency of either
man or machine.
department level metrics
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𝑺𝑾𝑰𝑷−𝑾𝑰𝑷
𝑺𝑾𝑰𝑷
[%]
Where:
SWIP – standard
inventory in a process
WIP – actual inventory in
a process
Shows how efficiently
materials flow
through a process.
𝑹 𝑻
𝑨 𝑻
[%]
Where:
R/T – time spent on rework
A/T – available time
Shows the
percentage of time
wasted on rework.
department level metrics
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Step 5: Implement an Appropriate
Response Plan.
Such as: DMAIC or PDCA
To be used for:
• Response to reject
• Response to variation in data
• Removal of non-value added time
• Removal of Muda, Mura, and Muri waste