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Operational Excellence Practice
Project Approach 2022
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
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
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
Employee Involvement Prototype
5
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
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
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
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
Project Plan
For a 3 to 1 return 15-25 weeks
10
Roles and Responsibilities
Howe Street Advisors:
Provides Structure, Focus & Urgency
Provides Project Management Knowledge
Provides Diagnostics & Analytic Tools
Provides Subject Matter Expertise in Operation Excellence
Howe Street Advisors & Our Clients:
Analyze Information Together
Diagnose Opportunities thru Analysis
Review Findings and Formulate Conclusions
Benchmark Processes
Develop Fact-Based Recommendations
Generate Action Items/ Assign
Mitigate Risk
OUR CLIENTS
OUR CLIENTS
Our Clients:
Implement Recommendations as Identified
Drive Action Items to Prompt Closure
Retain Tools and Applied Knowledge
Demonstrate Ownership of the Process
Communicate to All Levels
Operational Excellence
412.417.4210
jason.lhota@howestreetadvisors.com
http://howestreetadvisors.com/

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Howe Street Basic Project Approach

  • 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
  • 10. Project Plan For a 3 to 1 return 15-25 weeks 10
  • 11. Roles and Responsibilities Howe Street Advisors: Provides Structure, Focus & Urgency Provides Project Management Knowledge Provides Diagnostics & Analytic Tools Provides Subject Matter Expertise in Operation Excellence Howe Street Advisors & Our Clients: Analyze Information Together Diagnose Opportunities thru Analysis Review Findings and Formulate Conclusions Benchmark Processes Develop Fact-Based Recommendations Generate Action Items/ Assign Mitigate Risk OUR CLIENTS OUR CLIENTS Our Clients: Implement Recommendations as Identified Drive Action Items to Prompt Closure Retain Tools and Applied Knowledge Demonstrate Ownership of the Process Communicate to All Levels