The document outlines an operational excellence project approach that involves making processes and performance metrics visible through analysis of reports, value streams, and financial data. Key aspects of the project include establishing goals and roles, reviewing current management systems, identifying best practices, and installing ongoing audit and training processes to ensure sustainability. A variety of industrial engineering tools will be used such as process task analysis, resource utilization analysis, variance studies, line balancing, and action planning to pursue ongoing process improvement. The roles of the consulting firm and client are to jointly analyze information, diagnose opportunities, develop recommendations, and have the client implement and own the process changes.
2. Our Job 1 is to Make
the Invisible, Visible.
Dissecting reports, understanding product flows, value
streams, CMMS and the P&L are a facet to our service.
2
3. The Scenario
MANPOWER
Who is doing the work
METHODS
How is the work being
performed
METRICS
What, if any are the KPI
MATERIALS
What are the prescribed
materials used
MACHINES
What machines are used,
are they used to
optimum, what is the
maintenance
3
4. The Project
Opening Meetings
Setting the table
Focus Session
Establish the goals with
the team, illustrate
everyone’s roles and
responsibilities, review
the preliminary project
plan
Base and Goal
Development
Conveying the goals
directly to the
shareholders and
establish a system to
effectively track progress
4
Management
Operating System
Review
Depict in sufficient detail the way you operate today
with process owners and get agreement on “as-is”
Illustrate preliminary upgrades and opportunities
and attack causes of excess variation
Coordination of components to point of use
Balancing workloads & resources
Problem identification and resolution processes
Integrate EIP discovery process
6. The Project Continued
Map and Illustrate
Operating Best Practices
Ensure Sustainability
Document New Operating
System
Install Audit Process
Train personnel to flag and
correct issues on an ongoing
basis
Increase Management
Effectiveness
Discipline and Focus
Corrective Tools
Effective
Communication
6
7. Typical Industrial Engineering Tools
7
Line Balance:
Identification and
Optimization of
Constricted W/C’s
Client Name: Steps Time Steps Time Steps Time
Plant:
Representative Product:
Department:
Activity:
Position:
Date:
Charted By:
Supervisor:
Shift:
Comments / Notes:
1 2 3 4 5
Total
Time
Avg.
Time
Units/ Hr
1 Aquire Material 1
x 1 Frame 3.7 6.5 4.5 2.8 4.2 21.7 4.3 829
2 Glue Ends 1
x 1 Frame 3.2 2.9 3.9 4.8 4.1 18.9 3.8 952
3 Place frame sides on table 1
x 1 Frame 3.0 2.3 3.4 2.4 2.9 14.0 2.8 1,286
4
Scan frame sticker and place
middles pieces & setting blocks 1
x 1 Frame 10.6 9.1 10.1 12.0 9.9 51.7 10.3 348
5
Lock 1st side & middle pieces.
Drill & screw 1
x 1 Frame 28.3 25.0 23.0 19.3 22.4 118.0 23.6 153
6
Lock End side & middle pieces.
Drill & Screw 1
x 1 Frame 22.3 18.6 19.0 19.8 18.8 98.5 19.7 183
7 Unload & stage 1
x 1 Frame 4.4 4.9 2.9 2.5 3.2 17.9 3.6 1,006
Process Task Analysis
Variable
Quantity
Material
Handling
1st Shift
#1
Builder #3
BB
February 3, 2009
Frame
Action
0.0
0.0
Totals & Averages Time
Category
(F,V)
Storage
Present Proposed
Step
#
Description
Crew
Size
UOM
Cycle Time per Unit (sec.)
Frame Building
Transaction
Kraftmaid
0.0
21.1
0.0
Difference
4
0
0
0
0
Inspection
Delay
Frames
Ernie R.
Value Added 3 47.1
0
2
4
6
8
10
12
14
16
18
20
22
1:30 PM 1:40 PM 1:50 PM 2:00 PM 2:10 PM 2:20 PM 2:30 PM 2:40 PM 2:50 PM 3:00 PM
5 minute Increments
Framing
Summary
27%
10%
19%
44%
Working Away Idle NR Work
Framing Resource Utilization
Kraftmaid Cabinetry
1/20/2009
1st Shift
Labor Utilization
0
50
100
150
200
250
300
350
400
450
9:30
AM
9:45
AM
10:00
AM
10:15
AM
10:30
AM
10:45
AM
11:00
AM
11:15
AM
11:30
AM
Pieces
per
Hour
Actual Rate Average Rate Plan Rate Observed Capacity PTA Rate
Euro Mill - KFL 526 Combo
Product Code:
February 11, 2009
1st shift
Production Variance Study
Line Balance
-
20
40
60
80
100
120
140
Stager Builder Tracker Door
Hanger
Inspector Boxer#1 Boxer #2
Units
per
Hour
Actual Erosion
Potential Open Capacity Actual
Optimum Planned Units/Hr.
KAAT Line #11
Cabinet Assembly
February 4, 2009
1st Shift
Resource Utilization:
Determination of Labor
Content Effectivity
Process Task Analysis:
Value Added v Non
Value Added Activities
Variance Study:
Measurement of
Effective Execution
Value Stream Mapping:
Current state – %
Value; % NVA: Waste,
Material Movement,
Takt Time, ec (Est.
Future State)
• Several types of Studies and
Data Collection Methods will be
used throughout the project.
• Managers and Supervisors will
be trained to carry this on post
RPC
8. Pursuit of Excellence
8
Process Task
Analysis
Resource
Utilization
Variance Studies
Line Balancing
Resource
Guide
Operating
Reports
Lost Time and
Material Loss
Pareto’s
Labor
Utilization
Action items
Process
Improvement
Action items
Defect
Reduction
Action items
Resource
Guide
Improved Tool
Data Analysis/
Hypothesis
Development
Execution to Spec
9. Typical Project Steering Team
How will we scale the future
Daily
• Daily Operating
Reports
• Lost Time/
Scrap/ Rework
Pareto
• OTD
• HSE/ Lost Time/
Near Miss
Daily
• Continuous
Improvement
Projects
• Action Items
• Cost Benefit
Analysis
Monthly
• Financials
• Monthly
Operating
Reports
• OTD
• HSE
• CIP’s
• Action Items
9
Weekly
• Weekly
Operating
Reports
• Pareto
• OTD
• HSE
• CIP’s
• Action Items