Ibi

© Imants BVBA http://www.managementsupport.com
Integrated Business Improvement
(IBI)
© Imants http://www.managementsupport.com

Principles
• Understand your business
• Understand basic statistics and σ
• Know your products, suppliers and customers
• Understand your processes
• Know your Overall Equipment Effectiveness (OEE)
• Improve your business
• Benchmarking
• Reduce process variability
• Eliminate non-value added activities
• Reduce equipment related losses
• Involve all employees
• Link with customers and suppliers
• Monitor your business
• Balanced scorecard

Understand your business

1. Understand basis statistics and σ

1.1. Basic statistics
• Definition
• The science of
• collection
• analysis
• interpretation
• presentation
of numerical data

• Central tendency
• Mean= average value
• the sum of observed values divided by the number of
observations
• Median
• the values are ranked in order
• half of the values exceed the median and half are less
than the median
• Mode
• value that occurs most frequently

• Spread
• Range:
• difference between the lowest and the highest value
• only 2 data are used
• Variation
• difference between each data and the average
• because the sum of all variations becomes zero, the
variations are squared, and the sum of the squares is
used to measure variation

• Spread (2)
• Sum of squares
• the sum of the squared differences between each
original data and the average of data
• the sum of squares changes according to the number of
data
• Variance
• average of squares
• unit of variance is a squared unit
• Standard deviation (σ)
• square root of the variance
• expresses how widely spread the values are around the
mean

• Distribution
• A representation of the frequency of occurrence
of values of a variable
• Normal distribution
• Symmetric
• Bell-shaped curves with a single peak
• 2 quantities have to be specified
– Mean
– Standard deviation
• Not all distributions are normal

• Understanding Sigma (σ)
• Sigma is a statistical unit of measure,
which reflects process capability
• If sigma is high, there is a lot of variation
in the process
• In a normal distribution, if the mean = 100,
and the standard deviation (σ) = 4, then
• 95.5 % falls between +-2 σ (92 and 108)
• 99.99966 % falls between +- 6 σ (76 and 124)

Sigma Ppm Defects Yield (%)
2 σ 308573 69.2
3 σ 66807 93.3
4 σ 6210 99.4
5 σ 233 99.98
6 σ 3.4 99.99966
Operating at 6 σ allows only 3.4 defects
per one million opportunities

1.2. Data representation
• Line chart
• a chart where a line connects data points which
represent values
• Bar chart
• a chart with bars whose lengths are proportional
to quantities
• Pie chart
• a chart which shows classes or groups of data in
proportion to the whole data set

1.2. Data representation: Histogram
• Definition
• A bar chart in which data values are grouped
together in classes
• The bar bases are equal to the classes and the
bar areas are proportional to the frequencies
• Goal
• Showing distribution of the data (center, spread
and shape)

• Steps
• View summary of the collected data
• Divide the range of all values into non-
overlapping intervals, called classes, in such a
way that every piece of data is contained in some
class
• Display frequency in each class

1.2. Data representation: Run Chart
• Definition
• A line chart, where events, shown on the y axis,
are graphed against a time period on the x axis
• Goal
• To look at a process behaviour over time
• Reveal patterns that occur over time

• Steps
• Draw and label the vertical axis
• Draw and label the horizontal axis (with time
indications when the data are collected)
• Plot the data points on the chart
• Connect the data points with lines
• Look for trends, cycles, seasonality or extreme
values in the data

1.2. Data representation: Check Sheet
• Definition
• A tool for collecting data in a logical format
• Goal
• Collecting data in such a way that it can easily be
used, understood and analyzed
• Organise and display information as it is collected

1.2. Data representation: Check Sheet
• Sample
Defect type Totals
Type 1 I I I 3
Type 2 I I I I I I I 7
Type 3 I I I I I I 6
Type 4 I I I I I I I I I I I I I I 14
Type 5 I I 2

1.2. Data representation: Scatter Diagram
• Definition
• A graph of a pair of variables that plots the first
variable along the x-axis and the second variable
along the y-axis.
• Goal
• Exploring graphically the relationship
(correlation) between two variables of a data item

• Line of best fit
• The slope of the line which fits the data most
closely
• Steps
• Collect data
• Draw horizontal axis: 1st variable
• Draw vertical axis: 2nd variable
• Plot data
• Analyze

2. Know your products, suppliers and
customers

2. Know your products, suppliers and customers
2.1. Pareto principle
• Pareto Principle
• Most effects come from relatively few causes
• 80 % of any result is attributable to 20 % of the
contributing activity
• Examples
• 80 % of the profits are generated by 20 % of the
customers
• 80 % of problems are due to 20 % of the possible
causes

2. Know your products, suppliers and customers
2.2. ABC analysis
• ABC classification
• Select a criterion (ex. Sales, margin)
• Rank the items on criterion in decreasing order
• Calculate % for each item
• Rank in decreasing order
• Calculate the cumulative %
• Assign items into A, B, C categories
• Determine different strategies and policies for
each category

2. Know your products, suppliers and
customers: ABC classification
Class of Item % of Items % of Criterion
Class A 15 % 80 %
Class B 25 % 15 %
Class C 60 % 5 %

3. Understand your processes

3.1. Flow chart
• Definition
• A graphical representation of the flow of material
and information through a process
• Goal
• Expressing the sequence and logic of procedures
• Understanding the current process
• Analyzing the current process
• Looking for improvement opportunities
• Illustration of possible improvements

3.1. Flow chart
Symbol Meaning Example
Start/Stop Proposal
Decision Point Yes/No
Task Phone call
Document Form filled out
Connector/ Break Other page
Delay Waiting

3.1. Flow chart

3.1. Flow chart: deployment flow chart

3.1. Flow chart
• Steps
• Define the process
• Agree on the beginning and ending point of the
work process
• Put the major steps in the proper sequence
• Assign the appropriate symbols to each step
• Connect the steps with arrows to show the flow of
the process.
• Test the flowchart to make sure all the necessary
steps have been included.

3.2. Process Map
• Definition
• Flowcharts that capture more information
• Responsibility for performing the operation
• Operation description
• Cost per unit
• Number of work hours
• Time required to perform the task
• Real time the task is performed
• Performance measures

3.2. Process Map
Job Title
Operation Description
Work hours per unit
Time required: 10 min
Real time: 3 hours
Processed units/day

3.3. Value Stream Map
• Definitions
• Adding value: performing a task or service that
the customer is willing to pay for (85 % of a
process is made up of non-value-added activities)
• Value stream: the sequence of steps that a
company performs in order to satisfy a
customer’s need
• Value stream map: the visual representation of
the material and information flow of the product
production path from raw material to the
customer

• Goal
• Assessment of the current situation
• Identifying where value is added and value is lost
• Elimination of any activity that does not add value
to the final product
• Identifying the sources of waste

• Steps
• Gather details about the customer's requirements and ask,
"Are we adding value?"
• Determine starting and stopping points with the customer
needs in mind
• Detail the physical flow
• Add inventory levels, cycle times and change-over times
• Map the supply of materials
• Map the information flow and determine push and pull
systems
• Determine the value-added ratio
• Construct a future state map

3.4. Control chart
• Definition
• A tool which graphically depicts the average
value and the upper (UCL) and lower control
limits (LCL) of a process
• Properties
• The control limits define the constraints of
common cause variations
• A typical control chart has control limits set at
values such that if the process is in control,
nearly all points will lie between the upper control
limit (UCL) and the lower control limit (LCL)
• Control limits on a control chart are commonly
drawn at 3σ from the center line

3.4. Control chart
• Goal
• Evaluation of the range of variation that is built
into a process
• Seeing both special and common cause variation
in a process

3.4. Control chart
UCL
LCL

3.4. Control chart
• Chart interpretation
• If the data fluctuates within the limits, it is the
result of common causes within the process, and
can only be affected if the system is improved or
changed
• If the data falls outside of the limits, it is the result
of special causes
• These special causes must be eliminated before
the control chart can be used as a monitoring tool
• If one or more points fall outside the control
limits, the process is "out of control"

3.5. Statistical Process Control
• Definition
• A method of monitoring a process during its
operation
• Goal
• Controlling the quality of the products while they
are produced
• Monitoring the performance of a process
• Determining quickly when a process is out of
control
• Determining how much variation in a process is
due to common cause variation and how much
is due to special cause variation

3.6. Process capability
• Definitions
• What the process is capable of accomplishing
• Capability index (Cp)
• A measure that compares the process spread to
customer specifications (LSL and USL)
• Cp does not take the process center into consideration
• The higher Cp, the less variation in your process
• Cp = (USL - LSL)/6σ
– Cp < 1: process is unsatisfactory
– 1 < Cp < 1.6: process is of medium relative capability
– Cp > 1.6: process shows high relative capability

• Definitions
• Capability index (Cpk)
• A measure that compares both the spread and the
center to customer specifications
• Cpk = minimum of
– (USL - mean)/3σ
– (mean – USL)/3σ

• Goal
• Assess whether the process is capable of
producing products which conform to
specifications
• Estimate the fraction of product out of
specification

• The message from process capability studies
is:
• first reduce the variation in the process
• then shift the mean of the process towards the
target

4. Know your Overall Equipment
Effectiveness

4. Know your OEE
4.1. Overall Equipment Effectiveness
• Definition
• A measure of the efficiency of your equipment
during planned operation time
• Components
• Availability
• % of scheduled time that equipment is available to
produce products
• Performance
• Actual rate of production as a % of the design or ideal
rate
• Quality
• % of good products out of the total products produced

4. Know your OEE
4.1. Overall Equipment Effectiveness
Overall Equipment Effectiveness = Availability x Performance x Quality Yield
Availability Downtime loss
Speed lossPerformance
Quality Yield Quality loss

Improve your business

5. Benchmarking

5. Benchmarking
• Definition
• A technique that involves comparing one's
own processes to excellent examples of
similar processes within the own company
(internal benchmarking) or outside the
company (external benchmarking)
• Goal
• Improving products and processes to
better meet customer needs

5. Benchmarking
• Steps
• Plan
• Understand the critical processes and how they are
measured
• Decide what kind of data is needed and how data will
be collected
• Research
• Establish the metrics to be used
• Identify the benchmark candidate
• Collect public data

5. Benchmarking
• Steps (2)
• Observe
• Go to the source of the data and visit the benchmarking
partner
• Analyze
• Summarize and interpret the data
• Analyze the gap between your process and your
partner's process
• Project where future gaps will be
• Analyze things that were not on the agenda
• Develop key findings into new operational goals

5. Benchmarking
• Steps (3)
• Adapt
• Communicate the benchmark findings widely
• Involve a broad cross-functional team of employees
• Translate the findings to a few core principles
• Work down from principles to strategies to action plans
• Improve
• Continuous improvement
• Plan for the next benchmarking project

6. Reduce Process Variation

6.1. Special Cause Variation
• All processes must be brought into
statistical control by first detecting and
removing the Special Cause variation
• special cause variation is created by a non-
random event (machine setting, raw material,
operator error) leading to an unexpected change
in the process output
• the effects are unpredictable
• the process output is not stable over time
• special causes require immediate corrective
action

6.1. Special Cause Variation
• Actions
• Immediately try to understand when a special
cause occurred
• Search for the cause
• determine what was different when the special cause
occurred
• Solve the problem
• perform a quick-fix
• identify ways to prevent the special cause from
recurring

6.2. Problem Solving: Brainstorming
• Definition
• A method for a group of people to gather
everyone’s ideas
• Goal
• Generate a high volume of ideas quickly

• Benefits
• Every member is encouraged to participate
• Generates a substantial list of ideas, rather than
just the few things that first come to mind
• Principles
• Get as many ideas as possible
• Creativity is important
• Don’t criticize
• Be free to comment
• Quantity, not quality

• Steps
• Select a problem and state it clearly and
specifically
• One person will list all ideas on the chalkboard
• Rule out all critical judgments, negative
comments, and evaluation
• Encourage free flow of ideas no matter how far
out or free-wheeling
• Close the session after 15 to 20 minutes

6.2. Problem Solving: Affinity Diagram
• Definition
• An affinity diagram is a tool used to organise
ideas obtained from a brainstorming session
• Goal
• Organize ideas and facts which have an affinity
for each other into categories

• Steps
• Select a topic
• Hand out post-it-notes
• Each group member writes down his ideas (1 idea
per post-it-note)
• Post-it-notes are put on the wall
• Related items are grouped together
• Each group is labeled
• These labels will now be studied to gain a better
understanding of the topic

Idea 1
Idea 2
Idea 3
Idea 4
Idea 5
Idea 6
Idea 7
Idea 8
Idea 9
Idea 10
Idea 11
Idea 12
Label 1 Label 2 Label 3 Label 4

6.2. Problem Solving: Cause and Effect Diagram
• Definition
• A tool used to analyze all factors (causes) that
contribute to a given situation or occurrence
(effect) by breaking down main causes into
smaller and smaller sub-causes.
• This tool is also known as the Ishikawa or the
fishbone diagram
• Goal
• Figure out all the possible causes for a particular
effect

• Steps
• Clearly define the effect for which the causes
must be identified
• Draw the diagram
• Summarize causes under categories such as
• Methods, Machines, Materials, Manpower
• People, Places, Procedures, Policies
• Use brainstorming to identify the elements within
each category

Effect
Category 1 Category 2
Category 3 Category 4
Cause
Cause
Cause
Cause
Cause
Cause
Cause
CauseCause
Cause
Cause
Cause

6.2. Problem Solving: 5 Whys and a How
• Ask 5 times “Why?” and 1 time “How?”
• In some cases, this problem solving
technique can give the root cause of a
problem fairly quickly

6.2. Problem Solving: Pareto Analysis
• Definitions
• Pareto chart: a bar chart that orders data from the
most frequent to the least frequent
• Pareto analysis: a method of classifying items,
events, or activities according to their relative
importance
• Goal
• Prioritizing when all problems cannot be tackled
simultaneously
• Determining the most important problem

Problem Causes
%
20
40
60
80
100
A B C D E F ... O P
42
62
80
100

• Steps
• Identify the contributors to the problem: steps,
machines, materials, costs
• Sort the data in descending order (largest to
smallest)
• Draw the bar graph
• Draw a cumulative line graph on top of the bar
graph showing the cumulative percent
contribution

6.3. Common Cause Variation
• Common cause variation
• Created by many factors, that are acting totally at
random and independent of each other
• The variation will not change unless the process
is changed

6.3. Common Cause Variation
• Actions
• identify aspects of the process that contribute to
the common cause variation
• determine which aspect of the process to change
in order to reduce variation or improve the
performance of the middle value of the process
• plan the process change

6.3. Common Cause Variation: DMAIC cycle
• Definition
• Systematic process to solve problems and make
improvements
• Steps
• Define
• Measure
• Control
• Improve
• Analyze

6.3. DMAIC cycle: Define
• Steps
• Select the process
• Pareto Chart
• Prioritization Matrix
• Document the process
• Process map
• Process Flow Chart
• Value stream map
• Define process requirements

6.3. Prioritization matrix
Project 1
Criterion 1
Project 2
Project 3
Project 4
Criterion 2 Criterion 3 Score

6.3. DMAIC cycle: Measure
• Tools
• Run Chart
• Statistical Process Control
• Measurement Systems Analysis (MSA)
• qualification of a measurement system
by quantifying its accuracy, precision,
and stability
• ensures that your measurement system
is statistically confident

6.3. DMAIC cycle: Analyze
• Steps
• Identify Possible Causes
• Narrow to Root Causes
• Validate Root Causes
• Financially Quantify the Improvement
Opportunity

6.3. DMAIC cycle: Analyze
• Tools
• Histogram
• Cause and Effect Diagram
• Scatter Diagram
• 5 Why analysis
• Design of Experiments (DOE)

6.3. Design of Experiments (DOE)
• Definition
• a systematic approach to varying the input
controllable variables in the process and
analyzing the effects of these process
variables on the outputs
• Rather than experiment with only one
factor at a time, you can experiment with
many factors simultaneously

6.3. DMAIC cycle: Improve
• Steps
• Generate solutions
• Select solutions
• Plan implementation
• Prepare change management strategy

6.3. DMAIC cycle: Improve
• Tools
• Brainstorming
• Standardized work
• Poka Yoke

6.3. DMAIC cycle: Standardized Work
• Definition
• The documentation and application of the best
practices of a manufacturing process
• Includes photographs and drawings
• It is developed with the operators
• It is posted at the workstation
• Goal
• Ensuring that production operations are
performed the same way each time

6.3. DMAIC cycle: Standardized Work
• Standardized work consists of three
elements:
• Takt time – matches the time to produce a part or finished
product to the pace of sales and is the basis for allocating
work among workers.
• Standard in-process inventory – the minimum number of
parts, including units in machines, required to keep a cell or
process moving.
• Standard work sequence – the order in which a worker
performs tasks at various processes.
• Once a standard work is set, performance is
measured and continuously improved

6.3. DMAIC cycle: Poka Yoke
• Definition
• the implementation of fail-safe mechanisms to
prevent a process from producing defects
• uses simple, low cost devices that prevent
defective parts from being made, or makes the
mistake obvious at a glance

6.3. DMAIC cycle: Poka Yoke
• Devices
• Contact devices
• switches, limit switches
• Sensing devices
• vibration, pressure, temperature
• Warning devices
• color code, lights

6.3. DMAIC cycle: Quality at the Source
• Definition
• A tool that places responsibility for meeting
customer specifications and standards at each
manufacturing point

6.3. DMAIC cycle: Quality at the Source
• Machines
• intelligence to be self-operating and self-stopping
when an error occurs
• People
• served by machines, not vice versa
• Quality
• built-in, not inspected-in

6.3. DMAIC cycle: Control
• Steps
• Standardise process(es)
• Document procedures
• Develop and deploy process control
systems
• Evaluate project

6.3. DMAIC cycle: Control
• Tools
• Statistical Process Control
• Control plan
• a centralized document to keep track of the status of all
significant process characteristics

7. Eliminate non-value added activities

7.1. Non-value added activities
• Definitions
• Value Added
• Changes to the Size, Shape, Form, Fit or Function of a
Part
• Non-Value Added
• Required Work that Does Not Change the Part
• Non-Value Added Activity: any activity which
utilizes equipment, materials, parts, space,
employee time or other corporate resource
beyond the minimum amount required for value-
added operations to insure manufacturability

7.1. Non-value added activities
Overproduction
Producing more, sooner and faster than
required by the next process
Types
Transportation
Inventory
Processing
Waiting
Correction
Motion
Unnecessary transport of goods (requires
equipment, space, people etc.)
Maintaining excess inventory
Doing more work than necessary
(inspections, paperwork)
Operator or machine idle time (waiting for
Tooling, setups, parts, breakdowns…)
All repairs to product to fulfill customer
requirements
Any wasted motion to pick up parts or
stock parts. Also wasted walking.
Example

Sort
Sustain Set-in-order
ScrubStabilize
Sort out what is needed and what is not needed.
When in doubt, throw it out
Keep machines and work
areas clean
Make cleaning and checking
a routine practice
Arrange essential things in
order for easy access
Make the 5 S’s a way of life:
requires discipline
5 S
7.2. Workplace organization: 5 S

• Sort
• Sort involves sorting through the contents of an
area, and immediately removing unnecessary
items
• Sort includes large items (old equipment) and
small items
• Sort rule: When in doubt, Sort it out

• Set-in-order
• Set-in-order involves arranging items for easy and
efficient access and use
• There should be a place for everything, and
everything should be in its place

• Scrub
• Scrub means cleaning everyting, and keeping it
clean

• Stabilize
• Make cleaning and checking a routine practice

• Sustain
• Sustain involves communication and education to
ensure that everyone follows the 5S standards

• Benefits
• 30 to 50% increase in available floor space
• Reduced inventory and work-in-progress
• Reduced machine down time
• Less scrap and rework
• Reduced search time
• Enhanced team member morale and motivation

7.2. Workplace organization: Visual Workplace
• Definition
• Visual signals that give each operator and
manager the information needed to make a right
decision
• Systems that enable anyone to immediately
assess the current status of an operation or
process at a glance, regardless of their
knowledge of the process
• Goal
• Creating a visual environment in which
• All information regarding production is displayed
• Performance is easily monitored

• Elements
• Visual displays: relates information and data to
employees in the area
• charts
• metrics
• procedures
• process documentation
• Visual controls: intended to control the actions of
the group members
• production status boards
• quality controls

• Elements (2)
• Visual process indicators
• lines, labels, signs, colors
• painted floor areas for good stock, scrap
• direction of flow indicators
• Visual documentation of processes

7.2. Workplace organization: Point of Use Storage
• All material is stored where it is going to be
used in the process
• Reduces material handling requirements and
makes it easier to determine raw material
needs due to smaller shipments from
vendors

7.4. Create Flow
• General principle
• Value-added steps are linked
• Non-value added steps are eliminated

7.4. Create Flow
• Batch reduction
• A philosophy that rejects batch, lot or mass
processing as wasteful
• Product should move (flow) from operation to
operation, only when it is needed, in the smallest
increment, one piece being the ultimate (one-
piece-flow)

7.4. Create Flow
• Cellular layout
• Links manual and machine operations into the most-
efficient combination to maximize value-added activities,
eliminate non-value added activities and minimize waste
• Product- centered series of operations
• One-piece flow
• U-shape or semi-circle
• Equipment movable and placed closely together
• Quick feedback between operators
• Workers in manufacturing cells typically are crosstrained to
perform multiple tasks

7.4. Create Flow
• One-piece flow
• The concept of moving one workpiece at a time
between operations within a workcell
• Benefits
• balanced work
• low work in process (WIP) inventory
• better quality

7.5. Let the customer pull product
• Pull
• a method that relies on customer demand as a
way to control flow of resources by replacing only
what's been consumed
• Takt Time
• the rate at which customers require the product
• Takt time is computed as:
Available work time per day
Daily required customer demand in parts per day

• Kanban
• A system of inventory management in which
visual cues (color-coded cards or simple signals)
are used to
• pull inventory as it is needed through the manufacturing
process
• start and stop production of components based on a
preset minimum and maximum.

• JIT
• An inventory control system where products and
services are delivered to the customer only when
needed
• Producing
• Exactly what is needed
• At exactly the time it is needed
• In the amount needed
• With the minimum resources possible

8. Reduce Equipment Related Losses

8. Reduce equipment related losses
8.1. Losses (1)
Downtime
loss
Speed loss
Quality loss
Equipment failure / breakdowns
Set-up / adjustments
Minor stopping / idling
Reduced speed
Process errors
Rework / scrap

8.1. Losses (2)
Manpower
losses
Material
losses
Cleaning and checking
Waiting instructions
Waiting quality confirmation
Material yield
Energy losses
Waiting materials
Consumable material losses

8.2. Plan maintenance activities
• Work planning
• assigning work orders to a time period
• plan resources
• Work scheduling
• arranging the sequence of the work orders
• considerations
• priority
• availability of craftsperson
• availability of material and equipment
• desires of the operating personnel

8.2. Plan maintenance activities: workflow
• Work identification
• Work order creation
• Work preparation
• Description
• Crafts
• Estimated hours
• Materials and tools
• Safety and environment
• Work execution
• Progress tracking
• Work analysis
• Recording information

8.2. Plan maintenance activities: workload
• Definition
• all work available to be done (approved and
prepared)
• The workload must be used as a tool to make
decisions
• informs management about future needs for
maintenance (contracting, more or less
personnel)
• must be effectively managed so that it does not
grow to an unmanageable size

8.3. Introduce Autonomous Maintenance
• Train the operators to close the gap
between them and the maintenance
staff, making it easier for both to work
as one team
• Change the equipment so the operator
can identify any abnormal conditions
and measure deterioration before it
affects the process or leads to a failure

8.3. Establish Autonomous Maintenance
• Teach equipment operators
• The operation principles of their machines
• How to maintain their equipment by performing
basic routines
• daily checks
• lubrication
• parts replacement
• precision checks
• early detection and diagnosis of abnormal conditions

8.3. Establish Autonomous Maintenance
• 7 steps are implemented to progressively increase
operators knowledge, participation and
responsibility for their equipment
• perform initial cleaning and inspection
• countermeasures for the causes and effects of dirt
and dust
• establish cleaning and lubrication standards
• conduct general inspection training
• carry out equipment inspection checks
• workplace management and control
• continuous improvement

8.4. Decide on the type of maintenance: FMEA
• Failure Mode and Effects Analysis
• a systemized group of activities intended to
• recognize and evaluate the potential failure modes and causes
associated with the designing and manufacturing of a product
• identify actions which could eliminate or reduce the chance of
the potential failure occurring
• document the above process
• the technique is used both in the product design phase and
in the manufacturing process to determine the potential
risks of the failure of the product design and manufacturing
process

8.4. Decide on the type of maintenance: FMEA steps
• For each asset, answer the following 7 questions
• what functions and at what standard is the asset
theoretically capable of running?
• what are the ways in which it fails to meet these criteria?
(Failure Mode)
• what causes these failures?
• what happens when each functional failure occurs?
• what are the effects of the failure on the ability of the
organisation to meet customer needs?
• what can be done to prevent the failure?
• if a suitable preventive task cannot be found for the failure,
what should be done?

8.5. Reduce changeover times
• Change over time
• the changeover time is the time that it takes to go
from the last good part of the previous type made,
to the first good part made of the new type.
• 2 concepts
• Internal Changeover: steps that need to be
completed while the machine is shut off
(removing dies and tooling)
• External Changeover: steps that can be done
while the machine is running (preparing tooling
for the next changeover)

8.5. Reduce changeover times
• Methods
• component and tool reduction
• quick changeover fasteners
• teaming
• point of use storage of materials
• SMED is an acronym for Single Minute
Exchange of Dies

9. Involve all employees

9.1. Involvement
• Involvement and teamwork
• Involvement is a practice within an organization
whereby employees regularly participate in
making decisions
• A team is a group of individuals organized to
work together to accomplish a specific objective

9.1. Involvement
• How?
• Develop highly-trained, motivated employees who
investigate problems and find solutions as part of
their job
• Get people involved in
• Making suggestions for improvement
• Making decisions
• Implementing solutions
• Communicate your mission, vision and strategy
• Push decision making down to the lowest
possible level

10. Link to customers and suppliers

• Establishing relationships with customers allows the
organization to
• Know exactly what the customers wants (quality, delivery
conditions, frequency of delivery..)
• Improve the service to the customer
• React much faster to the customer needs
• Increase the customer loyalty
• Find rapid solutions to problems
• Receive fewer service calls

• Establishing relationships with suppliers
allows the organization to
• Optimize the number of suppliers
• Find rapid solutions to problems
• Improve supplier performance and delivery time

Monitor your business

11. Balanced Scorecard

11. Balanced Scorecard
• Definition
• A tool which translates a company’s vision and
strategy into a coherent set of performance
measures
• The performance measures include four
areas
• Financial performance
• Customer knowledge
• Internal business processes
• Learning and growth

Pathmaker software
• Some figures in this presentation are made
with Pathmaker, a software that helps you to
systematically create a better organization
• You can download a free 30 day trial of this
software: Click Here

The end
Please feel free to give any
comments to
info@managementsupport.com

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