Operations Management for MBA classes: I use the Heizer & Render textbook, so some of the slides are directly from them. I am busy adding a soundtrack. As soon as I have completed them I shall upload slides with a soundtrack.. Johan Jordaan
The document discusses Lean Thinking and Just-in-Time (JIT) systems. It defines Lean as doing more with less waste and focusing on core capabilities. The key principle of Lean is eliminating all waste to become faster, more dependable, higher quality, and lower cost. JIT aims to meet demand instantly with no waste. The document outlines Lean tools like value stream mapping, small batch production, visual controls, and 5S. It also discusses JIT techniques like pull scheduling, Kanban control, and levelled production to minimize inventory levels. Lean and JIT both focus on eliminating waste to improve productivity, quality and reduce costs.
The document provides an overview of Lean, including its principles of reducing waste and increasing flow to improve performance. It describes the Lean approach and tool kit to drive operational improvements through a structured transformation approach involving roles, tools, and phases to prepare, diagnose, implement, and sustain Lean practices. The goal is to remove variability and inflexibility through techniques like 5S, visual management, and standard work to meet customer demands with higher quality, lower costs, and lead times.
This document provides an introduction to Just-in-Time (JIT) and Lean operations principles. It discusses that JIT aims to produce the right part at the right time with no waste. Key aspects of JIT include eliminating waste, reducing variability, and improving throughput. Specific tactics covered include implementing the 5S methodology, using kanban systems for pull production, establishing JIT partnerships with suppliers, and focusing on small lot sizes, reduced set-up times and lead times to minimize inventory levels. The document also contrasts JIT with Lean operations and discusses approaches for implementing JIT and Lean principles in both manufacturing and service industries.
Lean Production can be defined as an integrated set of activities designed to achieve high-volume production using minimal inventories (raw materials, work in process, and finished goods).
The Toyota Production System
All work shall be highly specified as to content, sequence, timing, and outcome
Every customer-supplier connection must be direct, and there must be an unambiguous yes-or-no way to send requests and receive responses
The pathway for every product and service must be simple and direct
Any improvement must be made in accordance with the scientific method, under the guidance of a teacher, at the lowest possible level in the organization
The document provides an introduction to operations management concepts including defining operations, products, services, and supply chains. It discusses different types of production systems and strategies including mass production, lean production, and agile manufacturing. The document also covers topics like facilities layout, location planning, quality management, and environmental sustainability in operations. It emphasizes the importance of operations management in business strategy and competitiveness.
The document discusses traditional enterprise inspection practices and how they often do not add value and increase costs. It then introduces the concept of a customer supplier chain that aims for continuous quality control throughout all stages of the process. This helps improve communication, reduce gaps, define specifications, and facilitate feedback to more easily identify and address problems. It also discusses supply chain management and concepts like just-in-time manufacturing and lean manufacturing that focus on eliminating waste.
Operations Management for MBA classes: I use the Heizer & Render textbook, so some of the slides are directly from them. I am busy adding a soundtrack. As soon as I have completed them I shall upload slides with a soundtrack.. Johan Jordaan
The document discusses Lean Thinking and Just-in-Time (JIT) systems. It defines Lean as doing more with less waste and focusing on core capabilities. The key principle of Lean is eliminating all waste to become faster, more dependable, higher quality, and lower cost. JIT aims to meet demand instantly with no waste. The document outlines Lean tools like value stream mapping, small batch production, visual controls, and 5S. It also discusses JIT techniques like pull scheduling, Kanban control, and levelled production to minimize inventory levels. Lean and JIT both focus on eliminating waste to improve productivity, quality and reduce costs.
The document provides an overview of Lean, including its principles of reducing waste and increasing flow to improve performance. It describes the Lean approach and tool kit to drive operational improvements through a structured transformation approach involving roles, tools, and phases to prepare, diagnose, implement, and sustain Lean practices. The goal is to remove variability and inflexibility through techniques like 5S, visual management, and standard work to meet customer demands with higher quality, lower costs, and lead times.
This document provides an introduction to Just-in-Time (JIT) and Lean operations principles. It discusses that JIT aims to produce the right part at the right time with no waste. Key aspects of JIT include eliminating waste, reducing variability, and improving throughput. Specific tactics covered include implementing the 5S methodology, using kanban systems for pull production, establishing JIT partnerships with suppliers, and focusing on small lot sizes, reduced set-up times and lead times to minimize inventory levels. The document also contrasts JIT with Lean operations and discusses approaches for implementing JIT and Lean principles in both manufacturing and service industries.
Lean Production can be defined as an integrated set of activities designed to achieve high-volume production using minimal inventories (raw materials, work in process, and finished goods).
The Toyota Production System
All work shall be highly specified as to content, sequence, timing, and outcome
Every customer-supplier connection must be direct, and there must be an unambiguous yes-or-no way to send requests and receive responses
The pathway for every product and service must be simple and direct
Any improvement must be made in accordance with the scientific method, under the guidance of a teacher, at the lowest possible level in the organization
The document provides an introduction to operations management concepts including defining operations, products, services, and supply chains. It discusses different types of production systems and strategies including mass production, lean production, and agile manufacturing. The document also covers topics like facilities layout, location planning, quality management, and environmental sustainability in operations. It emphasizes the importance of operations management in business strategy and competitiveness.
The document discusses traditional enterprise inspection practices and how they often do not add value and increase costs. It then introduces the concept of a customer supplier chain that aims for continuous quality control throughout all stages of the process. This helps improve communication, reduce gaps, define specifications, and facilitate feedback to more easily identify and address problems. It also discusses supply chain management and concepts like just-in-time manufacturing and lean manufacturing that focus on eliminating waste.
Kingsleys Power Point Presentation on Operations Management.pptxKingsley Aduma
The document discusses key concepts in operations management. It defines operations management as the business function responsible for planning, coordinating, and controlling resources needed to produce products and services. An operations manager is responsible for transforming inputs like materials, labor, and capital into outputs like goods and services. The document outlines various operations management strategies, process types, facility layouts, and techniques for scheduling production, monitoring performance, and controlling processes. It also discusses ways to identify and eliminate waste, manage inventory, and increase productivity in operations.
The document summarizes key topics in production and operations management, including the importance of the production function, mass production techniques, production processes, the role of technology, factors in plant location decisions, the jobs of production managers in planning, layout, production control, and quality control, and some common quality standards.
This document provides an overview of lean manufacturing principles. It defines lean manufacturing and the lean enterprise as philosophies focused on minimizing waste and meeting customer needs. The key aspects of lean covered include identifying the seven types of waste, implementing 5S techniques, designing cellular manufacturing layouts, using just-in-time processes, and value stream mapping to optimize workflow. The goals of lean are to continuously improve processes, reduce costs and lead times, and increase quality and efficiency.
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This document describes 25 lean tools used to eliminate waste and improve manufacturing processes. It provides a brief description of each tool, including how it helps reduce waste. Some of the key tools discussed are 5S, which organizes and standardizes the workplace; ANDON, a visual system that alerts others when help is needed; bottleneck analysis for improving throughput; and value stream mapping to identify opportunities for process improvement. The overall goal of these various lean tools is to maximize value and minimize waste in production.
Operations management refers to administering business practices to maximize efficiency and profitability. It involves converting materials and labor into goods and services. The operations function creates and delivers products and services while evaluating quality, quantity, costs and fulfilling customer needs. Mass production and flexible production are two key production methods used. Production managers oversee resources to transform inputs into finished outputs through planning, implementing, and controlling production processes.
Innovative Inventory and Production Management Techniquesnarman1402
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Lean manufacturing is a way to eliminate waste and improve efficiency. It focuses on minimizing muda, or waste, including excess inventory, unnecessary motion, defects, and overproduction. Lean originated from the Toyota Production System, which aimed to reduce costs through practices like just-in-time production and continuous improvement. The key aspects of lean are identifying value-added steps and removing waste, ensuring smooth workflow, using pull systems between processes, and engaging employees in continuous improvement.
This document provides an overview of lean management principles and concepts. It discusses the origins and philosophy of lean management, including key terms like value-added activities and waste elimination. Push and pull scheduling methodologies are compared. Kanban is introduced as a just-in-time production planning and control tool. Continuous improvement processes and commonly used tools like 5S, kaizen, and quality circles are outlined. Organizational challenges to implementing lean management like cultural resistance and the importance of top management support are also highlighted.
Standardization(work study & measurement)Nisarg Shah
Standardization involves developing and applying common standards for products, components, or procedures. This provides benefits such as improved communication, facilitation of trade by removing technical barriers, and technology transfer. Process standardization formalizes work rules and procedures to make activities transparent and uniform. Product standardization sets uniform characteristics for goods or services to allow competition while providing consistency for consumers. Both provide benefits like reduced costs, increased quality and cycle time improvements, while standardization also improves management and organizational flexibility.
Here are the layout types I would expect at each facility and why:
- Airplane manufacturing plant: Fixed-position layout. Large airplanes are built in one area of the factory, with workers and equipment brought to the airplane. This allows for efficient assembly of large, complex products.
- Passenger seat manufacturing plant: Product layout. Seats would be assembled on a linear production line with stations for different assembly steps. This high-volume repetitive process is well-suited for a product layout.
- TV/DVD manufacturing plant: Either product or cellular layout. As these are smaller electronic items, a linear production line or cellular layout with multi-functional teams could both work well.
- Uniform manufacturing plant
This document outlines key concepts in production and operations management. It discusses the importance of effective production, including lower costs, higher quality, and responsiveness to customers. Mass, flexible, and customer-driven production systems are compared. The roles of technology in manufacturing are also examined. Other major topics covered include plant location decisions, production planning and control, inventory management, quality control, and ISO standards.
This document discusses the process of planning and designing cellular manufacturing. It begins by explaining the three flows in manufacturing: information, material, and work. It then defines cellular manufacturing and lists some of its benefits. The document outlines several steps to plan cellular manufacturing, including understanding customer demand, identifying product families, balancing the line, establishing synchronized one-piece production, and designing the cell layout. It provides guidelines for effective cell layout, machine selection, material management, and operator line balancing. The goal is continuous flow and meeting takt time. The document analyzes an example production line and identifies opportunities to better utilize operators' time.
This document provides information on cellular manufacturing and designing cells. It discusses the three flows in manufacturing: information, material, and work flow. It defines cellular manufacturing and lists its benefits. The document outlines the problem with conventional layouts and provides guidelines for identifying product families and determining takt time. It presents the steps to plan cellular manufacturing, including process analysis and razing. Finally, it provides guidelines for cellular layout and questions to consider when designing cells to ensure optimized one-piece flow and continuous improvement.
This document provides an overview of Lean Manufacturing (also known as Just-in-Time or JIT) concepts and implementation process. It discusses that Lean aims to eliminate waste from manufacturing operations to improve efficiency. The seven types of waste are identified as overproduction, inventory, waiting, transportation, overprocessing, motion, and defects. A five step process is outlined for implementing Lean: 1) analysis to identify non-value added activities, 2) choosing appropriate Lean solutions, 3) implementation, 4) verification of impact, and 5) standardization. Critical success factors are also discussed such as aligning with product costing methods and quality practices.
This document provides an introduction to Lean principles, methodology, tools and terminology. It discusses what Lean is, its history and key principles. Lean is a way to pursue value and eliminate waste from daily processes. This results in lower costs, reduced cycle times, fewer defects, improved customer satisfaction and employee morale. The document outlines various Lean concepts and tools, including the eight wastes, 5S, visual management, Kaizen (continuous improvement), standard work and mistake-proofing. It emphasizes identifying value, mapping value streams, establishing flow and pull, and seeking perfection through eliminating waste.
Lean operations aim to remove all non-value adding activities to deliver a faster, more dependable, higher quality and lower cost operation that is more responsive to customers. Just-in-time means producing goods exactly when needed to avoid inventory waste. The lean philosophy focuses on eliminating waste, involving everyone, and continuous improvement. Key lean techniques include visual management, small batch production, pull scheduling, total productive maintenance, and design for manufacturability. Lean and MRP planning approaches can be combined if their advantages are understood and preserved.
This document provides an overview of just-in-time (JIT) manufacturing. It discusses the history and objectives of JIT, the eight types of waste in manufacturing, and the three parts of JIT - purchasing, manufacturing, and quality management. Key aspects of JIT covered include production management, supplier management, inventory management, and human resource management. The document also compares traditional manufacturing systems to JIT systems and discusses how management accounting must adapt to support JIT goals.
This document provides an overview of value stream mapping (VSM) for lean management. It begins with learning objectives and defines VSM principles including suppliers, inputs, process, outputs, and customers (SIPOC) process mapping. It then discusses benefits of VSM such as identifying waste. Key aspects of VSM covered include current and future state mapping, data collection, identifying value-added vs. non-value added processes, challenges in current processes, and developing an implementation plan. The document provides examples of defining mapping boundaries and identifying material and information flows.
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The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
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This document describes 25 lean tools used to eliminate waste and improve manufacturing processes. It provides a brief description of each tool, including how it helps reduce waste. Some of the key tools discussed are 5S, which organizes and standardizes the workplace; ANDON, a visual system that alerts others when help is needed; bottleneck analysis for improving throughput; and value stream mapping to identify opportunities for process improvement. The overall goal of these various lean tools is to maximize value and minimize waste in production.
Operations management refers to administering business practices to maximize efficiency and profitability. It involves converting materials and labor into goods and services. The operations function creates and delivers products and services while evaluating quality, quantity, costs and fulfilling customer needs. Mass production and flexible production are two key production methods used. Production managers oversee resources to transform inputs into finished outputs through planning, implementing, and controlling production processes.
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This document outlines learning objectives and concepts related to innovative inventory and production management techniques. It discusses just-in-time production, target costing, life cycle costing, theory of constraints, and other methods to minimize inventory costs and maximize productivity. Key terms defined include economic order quantity, safety stock, push and pull systems, value chain relationships, and cost accounting changes with JIT adoption.
Lean manufacturing is a way to eliminate waste and improve efficiency. It focuses on minimizing muda, or waste, including excess inventory, unnecessary motion, defects, and overproduction. Lean originated from the Toyota Production System, which aimed to reduce costs through practices like just-in-time production and continuous improvement. The key aspects of lean are identifying value-added steps and removing waste, ensuring smooth workflow, using pull systems between processes, and engaging employees in continuous improvement.
This document provides an overview of lean management principles and concepts. It discusses the origins and philosophy of lean management, including key terms like value-added activities and waste elimination. Push and pull scheduling methodologies are compared. Kanban is introduced as a just-in-time production planning and control tool. Continuous improvement processes and commonly used tools like 5S, kaizen, and quality circles are outlined. Organizational challenges to implementing lean management like cultural resistance and the importance of top management support are also highlighted.
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Here are the layout types I would expect at each facility and why:
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- Passenger seat manufacturing plant: Product layout. Seats would be assembled on a linear production line with stations for different assembly steps. This high-volume repetitive process is well-suited for a product layout.
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This document provides information on cellular manufacturing and designing cells. It discusses the three flows in manufacturing: information, material, and work flow. It defines cellular manufacturing and lists its benefits. The document outlines the problem with conventional layouts and provides guidelines for identifying product families and determining takt time. It presents the steps to plan cellular manufacturing, including process analysis and razing. Finally, it provides guidelines for cellular layout and questions to consider when designing cells to ensure optimized one-piece flow and continuous improvement.
This document provides an overview of Lean Manufacturing (also known as Just-in-Time or JIT) concepts and implementation process. It discusses that Lean aims to eliminate waste from manufacturing operations to improve efficiency. The seven types of waste are identified as overproduction, inventory, waiting, transportation, overprocessing, motion, and defects. A five step process is outlined for implementing Lean: 1) analysis to identify non-value added activities, 2) choosing appropriate Lean solutions, 3) implementation, 4) verification of impact, and 5) standardization. Critical success factors are also discussed such as aligning with product costing methods and quality practices.
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Operating System One Pager for quality.pdf
1. 1
TENNECO CONFIDENTIAL
Monthly
Business Group
Review
Weekly
Plant CI
Review
Daily
Idea
Generation
IDEA MANAGEMENT
Main Aims:
• The aim of continuous improvement ideas is to systematically identify, develop, and implement innovative solutions and enhancements within an organization's processes, products, &/or services.
Potential sources of CI ideas. CI Pipe Line
CI/productivity Idea pipeline
Quick Kaizen Standardized work
Employee
suggestions
Shift handover &
huddle
Andon “Help
Chain”/
Practical Problem
Solving
Hour by hour
performance
management
boards
Improvement ideas
supported by cross
functional team
5 Why / Fishbone /
A3
RCPS
Kaizen / Model cell
or line deployment
Daily shop floor
review/observation
Daily KPI trends
S / Q / D / P
Consumption
Tower
CI pipeline /
Productivity
reviews
Staff meetings Financial reviews
P&L and budgets
results
Plant Ops reviews
(MOR)
Scorecard reviews
Hourly
Production operators &
team lead / group lead
Daily
Production & cross functional support
team
Weekly
Functional Team Members
Management Support
Monthly
Operations review
BU leaders, Ops directors, plant
managers
• CI ideas generation is
a dynamic and
iterative process that
involves all levels of
the organization
• Fostering a CI
environment leads to
a culture of
innovation and
adaptability.
Employee Suggestions:
Submit an idea
Paper
Forms
Google
Forms
Gather ideas
Collection
Boxes
Database
Prioritize Ideas
/ Execution
Employee suggestions
should be managed
systematically from
generation to execution
Collected ideas will be
managed by Lean Partners and
delegate the implementation
to corresponding departments
Corresponding department
takes ownership to develop
and implement the idea
Lean Partners will track
implementation and verify the
completion
Lean department will award
author of the completed ideas
with prizes of their choosing
1 2 3 4
Department Owners
responsible for the
implementation
Color-coded cards are
referenced for Safety or CI
ideas or issues
SQDCP Classification of
idea/issue
Status
idea/
issue
The Originator:
• Fills out CI card. Places on CI Board
The Group Leader
• Reviews card, provides feedback, places it in
the Assigned slot.
• Manage the process by tracking actions on the
CI Board daily
• Communication to TLs daily… status of key
actions, ensuring feedback flow.
General
CI T-card
Safety
CI T-card
Safety
T-card
(Stop-Call-Wait)
Productivity Reviews
CI Management Board Escalation Meeting (Tier)
• WAVE - structured stage gate process.
• Clarity about improvement progress.
• Visibility enables timely action to ensure progress.
Best Practice Sharing & WAVE
One platform to share
initiatives that were
successfully implemented
with sustained impacts
Library of details on
knowledge shared across
(linked with asset when
applicable)
Actions required from topic
managers (CI/ EHS / Quality,
etc.) to review & act on if
the shared knowledge is
applicable & actionable
One Knowledge Database WAVE Database
Ideas Realized
Track
Implement
Plan
Validate
L0
L1 L2 L3 L4 L5
2. 2
TENNECO CONFIDENTIAL
IDM CONSUMPTION MANAGEMENT & REDUCTION
Main Aims:
• Optimize the spend on indirect materials to ensure continuity of the production process while minimizing the expense incurred
Optimisation Tools Explanation:
• 3 areas x 7 Tools used
as strategies for
optimisation of IDM
spend Strategy
Usage control
for supplies
Increase % of
repair parts
Optimize tool
life
Tool
Reusability
Spares
Inventory
Sell-Back of
Obsolete
Inventory
VMI &
Supplier
Consolidation
What is it?
Cost Per Unit
(CPU) reduction
& usage control
Standardize
processes to
enforce repair
Consolidate
repair suppliers
and formalize
agreements
Consider in-
house repair
expertise for
high frequency
items
Extend tool life
by tracking tool
CPU and 'bag &
tag' process
Replace single-
use (cutting)
tools with
reusable, re-
grindable, re-
sizeable options
Optimizing the
min/max stocks
levels.
Keep, transfer,
sell, scrap, run-
down zero usage
or excess
inventory.
Vendor
Managed
Inventory &
Supplier
Consolidation
Reduce ✓ ✓ ✓ ✓ ✓
Re-use ✓ ✓
Repair ✓ ✓ ✓ ✓ ?
Recycle ✓
Supplies and Maintenance Tooling Inventory Management
Optimize repair suppliers
Repair v Buy
Usage Control Tool Reuse
Optimize
Life
VMI &
Supplier
Consolidation
Sell-back
Obsolete
Inventory
Spares
Inventory
Data
collections Track cost
and CPU
▪ Connect purchase order
to Work center.
▪ ‘What gets measured
gets managed’!
Data
analysis
▪ Analyze consumption
▪ Use pareto!...focus on top
10
▪ Launch kaizen activities on
identified supplies / work
center
▪ Monthly review and update
with project owner
▪ Are improvement actions
driving the cost?
▪ Are actions taken sustainable
and sustained?
Usage Control for Supplies
Repair v Buy
Increase % of Repair Parts Optimise Repair Suppliers
• Including repair criteria/notion in parts issuance
procedure
• Establish a “typically able to be repaired” list of items
• Establish standard repair protocols
▪ Consolidate the repair suppliers across sites and formalize
agreements
▪ Consider setting up in-house repair expertise for high
frequency items
Optimise Tool Life
Tool Life Attainment, extension and re-specification
• Extend tool life (and machine parts) by tracking CPU, executing a
bag and tag process, conducting root cause analysis to address
root causes of premature tool breakage, and implementing
initiatives to address the root causes
Tool Reusability
• Analysis on single-use cutting tools, single use
dies and other toolings - that could be replaced
with inserts or reused.
Spares Inventory
Stock
Stock level divided by 2
Q2 Q3 Q4
5 parts
Batch-size reduction
=
Lower Stock + Higher Flexibility
Q1
Stock
Q1 Q2 Q3 Q4
Stock level
10 parts
Data Analysis
• Regular review of usage
• Optimizing the min/max based on usage
• Ensure the right order frequency and right
order size
• Benefits
• This will save the company money via a
one-time inventory reduction
• Ensures re-order levels are continuously
optimized
• Clear up critical inventory storage space
Sell-back of Obsolete Inventory
Outputs
Inputs
Derived
factors
▪ Optimized max
▪ Optimized min
▪ Cycle stock
▪ Safety stock
▪ Demand variability
▪ 12mo demand
▪ Lead time
▪ Critical part (Y/N)
• Reduce cash in excess inventory
• Manage materials no longer active
• Frees up space
• Reduces the need to write-off
• Deal with excess or obsolete inventory
Idea database
▪ Create a master list of ideas that
we can possibly deploy in other
facilities
Plant clusters
▪ Identify plants with similar
processes and technologies –
‘clusters’ within each region
▪ Define applicability of ideas within
those plants/clusters
Read-across sessions
▪ Create a master list of ideas that
have high feasibility of deploying
in other facilities
▪ Rigorous tracking of performance
to ensure deployment of read-
across ideas
Enablers – Sharing Best Practices
3. 3
TENNECO CONFIDENTIAL
MATERIALS HANDLING MANAGEMENT
Main Aims:
• The aim of a materials handling system in an assembly plant is to efficiently and safely move materials, components, and products throughout the production process. This system plays a crucial role in streamlining
operations and driving productivity.
Benefits of Material Handling System
Improved Efficiency:
• Reduce manual labor and minimize time required to transport materials,
Increase overall productivity and output while minimizing errors.
• Reduce operational costs by optimizing the use of resources and
minimizing waste.
• Ensuring that materials are moved safely
• Enhanced quality control by minimizing the risk of damage or
contamination.
• Maximize the utilization of available floor space.
• Better inventory management by reducing the need for excess inventory
and ensuring materials are readily available when needed.
• Streamlined Workflow: Materials handling systems can be designed to
support the flow of materials in a logical and efficient sequence, reducing
bottlenecks and delays.
Transportation Selection
Production
Materials warehouse
Finish product
warehouse
Finished product
Empties; returnable
Raw materials/Semifinished products
Leftovers
Empties
Flow of materials in plant
Paint A
Paint B
Assembly 1
Assembly 2
Assembly 3
Assembly 4
Point-of-use
delivery
Milk run
components
Milk run Bars
1
2
3
4
Component's supermarket
▪ Milk run with pre-defined route (similar to bus
ride) can provide cost-effective transit method
for people to hop on/off throughout defined
routes…Similar logic applies to material
handling…
• Transport of mix of products to
multiple consumption cells in
repetitive route/routes
• Reduced workload on travels,
reduced stock in production area
• Fixed frequency of route,
problematic in case of unplanned
urgent plan changes
“Milk run (bus-delivery)
Heat
treat
Welding
Adjustment
Milling
Turning
Painting
Shipping
oo
o
o
o
oo
o o
o
Optimised for Milk run Delivery
• Make it simple, direct, compact: to
reduce transportation & operator
movement
• Apply 1-piece flow if possible: to
reduce WIP inventory & raise quality
issues timely
• Enable easy handling from
ergonomics standpoint: to improve
direct & indirect productivity
Flow rack
Machine
Present parts as close as
possible to the point of use
Flow racks can also go over
workstations and through
machines
Size parts containers for the
convenience of the operator
(often small and multiple of
FG pack out)
Often flow racks between
equipment
Front Loading
Limit the storage
capacity to 2 hours
maximum (more
frequent delivery)
Boxes opened for
operators
Outflow of empties
& FG
Materials Presentation & Supply – General Rules
• Material delivered as
‘ready-to-use’ for
operators without
handler entering the cell
• For operators, container
change should be a non-
interrupting activity.
Component/
container
size
Number of variants
High
Low
Small
Large Demand based
delivery
Delivered in the exact quantity
and in sequence
Demand based
delivery
Swap of empty containers
(2-bin system)
Dedicated slide/
corridor
Line side small box on flow
rack (designated location)
Picked & kitted
Prepared per batch
production
Characteristics
2 Kanban Super-
market (small
bags/boxes or big
pallets)
Super-
market
Feed full boxes
Line
runner
Operator Material handler
1 Kanban
Linefeed (small
bags/boxes or big
pallets)
Feed full boxes
Material handler
Operator
Pick to order
(picking full
bags/boxes, no
kitting)
Production
Line 1
Line 2
Line 3
#1
#2
#3
MT
Line
runner
Leftovers
Full
boxes
4
3 Kitting (picking
exact number of
parts needed for 1
product or 1 pro-
duction order)
Production
Line 1
Line 2
Line 3
#1
#2
#3
Full
boxes
Line
runner
Remarks
Used for replenishment of
small boxes / large-load
carriers
2-bin system possible
High demand on road
(evenness)
Tugger/
trailer
Used for replenishment
of small boxes and
large-load carriers
2-bin system possible
High demand on road
(width, corners)
Order
picker
Limit the usage if
possible
Primarily used for
large-load carriers and
special carriers
Low space
requirements
Forklift
truck
• Minimize internal transportation
costs
• Low operating costs (man,
machine, ...)
• High truck utilization
• Low share of empty routes
• Minimize plant traffic to improve
workplace safety
• Secure frequent replenishment of
material at point-of-use avoiding
delays
• Adapt to building constraints, i.e.
Width of roads, Corners
Types of Supply Mode to Work Stations
Decision Guidelines for Parts Presentation
8 Step – Design the Milk run
Route Optimisation
Guidelines for Cellular Manufacturing
Cell / Plant Layout
Master data
collection
Process flow
and area
mapping
PFEP model
preparation
Workload
evaluation
Consumption
patterns
calculation
Definition of
supply modes
for each part
Design of
storage
locations,
information
flow &
transportation
equipment
Evaluation of
optimal routes
type and
frequency,
resources
planning
Process
step
Current state analysis Future state design
Preparation
4. 4
TENNECO CONFIDENTIAL
OAE MEASUREMENT & MANAGEMENT
Main Aims:
• OAE (Overall Asset Effectiveness) measurement and management aims to improve the efficiency and performance of manufacturing processes and machinery.
OAE Definition
Data Collection
Minimum Requirement:
Summary View for Management
Machine / Cell Specific Visualisation
Visualizations
Tracking & Escalation
Improvement
B C D E
A F
Shutdown losses
Nonworking time (shutdown, holidays, Saturdays-Sundays,…)
No scheduled production (running only 1 or 2 shifts per day, lack of customer demand,…)
Planned downtime losses
Breaks, shift change, shift kick-off meeting, cleaning, training, meetings, preventive maintenance, trials, prototypes,…
Quality losses
Scrap – rework – startup loss,…
Operating
time Net
operating
time
Total time:
52 wks/yr
7 days/wk
24 hrs/day
Total
operations
time
Run time
Valuable
operating
time
Important note: Valuable
operating time is calculated
based on Designed cycle time
OAE = F / B (4 sources of loss)
Overall Asset Effectiveness
TEEP = F / A (5 sources of loss)
Total Effective Equipment Performance
OEE = F / C (3 sources of loss)
Overall Equipment Effectiveness
Downtime losses
Breakdown, set-up, tool change, no material, no operator, planned repairs,…
Speed losses
Minor stoppages, reduced speed,…
Losses not well declared/or wrong C/T (as calculated by difference)
• OEE / OAE / TEEP calculation & losses included or not
OEE, OAE & TEEP measure effectiveness at different levels :
OAE (Overall Asset Effectiveness)
measures how effectively the plant’s
management is running the equipment.
Plant
OEE (Overall Equipment Effectiveness)
measures how effectively equipment is
running when it is scheduled to run
Production Team
TEEP (Total Effective Equipment
Performance) measures how well an
organization extracts value from its assets.
Business Unit
Line-side hour by hour
performance board
OAE (Hour by hour)
database
Standard OAE visuals
• Data collection and visualization can be
manual, automatic or a combination of
both.
• Various technologies already exist within
Tenneco:
• WERMA, MES, TEN PI, AQUIWEB ASTREE,
Haldan MES,…
168
Waterfall diagram reported weekly Loss pareto reported weekly
OAE % weekly trend Top 3 losses reported daily for bottleneck
machines ONLY
19%
Change over
8%
Quality loss
7%
Breakdown
Real-time OAE% and
top losses (required
for automated data
collection & output)
6%
Breakdown1
3%
Breakdown2
3%
Quality1
89%
M1
54%
M2
75%
M3
62.5% 63.2%
67.8% 64.6% 67.2% 69.3% 65.6% 67.8% 70.3%
65.7%
8.3% 7.9%
8.3%
7.3%
9.4% 6.2%
7.0%
7.4%
7.1%
10.9%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
2021 2022 Jan/23Feb/23Mar/23Apr/23Wk 17 Wk 18 Wk 19 Wk 20
OAE
%
OAE Performance & Output
Set-up % OAE OAE Target
98 92 96 92 89 86 89 84 85 88
0
50
100 0 2
2 0 4 3
3 3 2 3 95
M/C #1
67 71 69 70 69 71 70 71 70 71
0
50
100
8
6 6
8 7 7 6 6 5 6 85
M/C #2
72 76 76 90 85 88 88 92 91 90
100
0
50
4
WEEK2 WEEK4
WEEK1 WEEK7
WEEK3 WEEK9
WEEK5 WEEK6 WEEK8 WEEK10
85
10 8 6
8 4 6 6 4 4
M/C #3
M/C #4
…
…
OAE above target OAE below target Change over loss OAE Target
Hourly Status Board
Automatic Data
Collection & Display
Andon Lights
Gemba Walks
Escalation Rules KPI’s Display Boards
Loss Pareto & Action Plan
Tier Meetings (Regular
Progress Review)
Main Elements for OAE Improvement
… a set time, path & agenda!
98 92 96 92 89 86 89 84 85 88
0
50
100 0 2
2 0 4 3
3 3 2 3 95
M/C #1
67 71 69 70 69 71 70 71 70 71
0
50
100
8
6 6
8 7 7 6 6 5 6 85
M/C #2
72 76 76 90 85 88 88 92 91 90
100
0
50
4
WEEK2 WEEK4
WEEK1 WEEK7
WEEK3 WEEK9
WEEK5 WEEK6 WEEK8 WEEK10
85
10 8 6
8 4 6 6 4 4
M/C #3
M/C #4
…
…
OAE above target OAE below target Change over loss OAE Target
Tier 3
Tier 2
Tier 1
Tier Meeting Visualisation
Typical Improvement Tools
Overall Loss Diagram - Hours
168
144
127
72
44 41
24
17
55
28
3
0
20
40
60
80
100
120
140
160
180
Total time Time not
scheduled
Total
Operations
Time
Planned
down time
Run time Downtime
losses
Operating
time
Speed loss Net
operating
time
Quality loss Valuable
operating
time
Lunch Breaks
Planned Downtime losses
Shift changes
Organization
Multi-skill
3For1 1For3
Minor Stoppages (mainly Auto)
Performance losses
Reduced Speed (Auto or manual)
Tick mark Video analysis
Standardized work
C/T analysis
Changeovers
Breakdowns
Downtime losses
SMED
TPM
Scheduling
Scraps
Quality losses
Living pareto +
shutdown limits
Problem Solving
xx Associated tools to improve
Multi-Level
Pareto
5. 5
TENNECO CONFIDENTIAL
PERFORMANCE MANAGEMENT
Main Aims:
• Performance management system improves overall organization performance by effectively managing and developing the performance of its employees, through setting clear objectives, monitoring and measurement,
feedback and communication, development and training, recognition and rewards and performance improvement activities.
Line Side KPI’s
What is KPI Objectives of performance
management board
Require Elements
• KPIs - to focus your
teams, to make the most
impact towards what's
most important
• Visual management tool
to quickly identify
deviations and close
production gaps
Required Elements:
• Rate/target/Actual/Gap/Running
total
• Shift information
• Loss (quality, scrap, etc.)+ Comments
(loss reasons, actions, action owners,
etc.)
• OAE% (if generated using automated
system)
• Bottleneck machine mush
have a line-side performance
management board!
Target Cascade & Tier Meetings
Purpose is to align, focus, and engage team members to achieve an organization’s vision of success by cascading objectives on one
side and then setting up feedback communication CONTROL loops on the other side
Cascade objectives.
Be aware of 'concrete v abstract'
dilemma, i.e. what is meaningful at
one level, when it is cascaded it is not
doable at the next. Relates to
different time dimensions associated
with the hierarchy (in fact it is why
we have the hierarchy).
Production instruction
Visual management
Withdrawal Kanban
Team Leaders
Implement Kanban system in stamping
to contribute to OTD to customer
Supervisors
Assure 100% OTD by developing and
implementing manufacturing
production control
Production
Teams
Improve customer satisfaction by
improving on-time delivery
Value Stream
Teams
Be the #1 widget supplier in the world
Plant
Management
& Staff
VSM/FF Objectives
Group Leader
Performance
Objectives
Team Leaders
Performance
Objectives
Line Side
Performance
Objectives
Review performance Assess deviations
Launch corrective
actions
Escalate upwards
Leader Standard Work
Purpose: The things that the managers should do on a scheduled basis (daily, weekly, bi-
weekly, monthly)
Time
Leader
Standard
Work
Management
systems
Stabilize what
works!
▪ Management Systems are not mechanical – they are
created and sustained by people.
▪ Constant attention required to sustain and improve.
How do we sustain
(improve) over
time?
Otherwise, we return to, or find new, BAD HABITS.
Standardization Ownership Auditing
Team Leader
LSW
Group Leader
LSW
• Develop basic (& stable)
structure of daily tasks
• Complete the most critical
tasks every day
• Ensure that the LSW is
aligned with other value
stream team members
Tier 3 Tier 2 Tier 1 Hr x Hr
Plant Performance
Objectives
Tier 4
Plant Plan (AOP)
=
+
Tool – Agenda, Performance Management Board
Explanation - Daily meetings connected to the hierarchical
design of the plant
Purpose - ensuring comparison of actual v target and
corrective actions or escalation to next level. Quick
response to emerging problems.
6. 6
TENNECO CONFIDENTIAL
RELIABILITY & MAINTAINBILITY FOCUSSED IMPROVEMENT TEAMS
Main Aim of FIT:
• Elimination of recurrent issues / equipment weaknesses.
• Continuous and sustained Equipment performance improvement.
• Positive feed forward loop – PM + AM
Objectives
Recognize the types of losses:
• Bottleneck process
• Major cost losses
• Define the priority of the losses.
• Identify the area of intervention.
Selection of the topic/s to be addressed:
• Address topics on which the best results can be
achieved
• Create opportunities to enhance know-how
• Identification of a model area:
• Attack bottle-neck processes
• Attack major losses (cost based if necessary).
Objectives
• Stratify (pareto) the losses.
• Repeat the loss stratification
(pareto) process to identify the
root causes of the problem
• Stratification / explode data
to lowest possible level.
• Death by pareto!
• Repeat the process to
identify the root cause loss
which, if eliminated, may
solve the problem.
Objectives
Decide on the improvement topic
Promote the topic
Plan related activities
Prepare the activities
Define the improvement team with necessary:
• Knowledge and skills required
• Subject matter expert(s).
• Product/process competences
• Group dynamics
• Individual willingness
• Available resources
• Members from the affected area.
• Typically, 3-5 members, but appropriate
for the size of the problem.
Objectives
Methodology selection criteria:
• Important that the FIT utilize the
appropriate level of problem
solving.
Standard/Quick Kaizen: is used when the
problem / phenomenon is mostly defined,
and data are available..
Major Kaizen: Heavyweight tool for
improvement with larger teams and longer
timescales (complex problems). Advanced
Kaizen: Advanced Kaizen is used in a less
frequent way. Tools are generally more
complex and sophisticated (e.g., Six Sigma,
etc.)
Objectives
Sharing: The aim is to:
• leverage the benefit of improvements
across the organization (within the plant
and across the group).
• Boost to the business but also a source
of pride for the FIT.
Summary
FIT’s play a vital role in TPM by driving CI, problem-solving, and employee engagement. They identify, analyse, and address issues
to enhance productivity, quality, and overall efficiency in production processes.
Purpose / Usage / Link to other TOS:
• Continuous Improvement - drive continuous
improvement
• Problem Solving - focus on solving specific problems
• Employee Involvement - promote employee
involvement and engagement. Foster a culture of
ownership & responsibility.
• RCPS
• Cross-functional teams
• Data Analysis - gather & analyse data related to the
identified issues.
• Kaizen Events - aim to make rapid improvements
• Standardization - creating and implementing
standardized work procedures and best practices
• Training and Skill Development - skills development
opportunities for team members
• …
7. 7
TENNECO CONFIDENTIAL
RELIABILITY & MAINTAINBILITY – PLANNED / AUTONOMOUS MAINTENANCE
Main Aims: An approach that leads to increased equipment availability by reducing downtime due to failure and unplanned (emergency) repairs. Total: All equipment and all employees are involved. Productive: Improving
productivity by eliminating waste and enhancing asset effectiveness. Maintenance: Maintenance processes and equipment condition
TPM Structure
Autonomous
Maintenance
TPM
Total Productive Maintenance
5S
Visual Management
Problem Solving
Focused
Improvement
Planned
Maintenance
Education
&
Training
Early
Equipment
Management
Quality
Maintenance
Safety,
Health
&
Environment
Administrative
&
Office
TPM
Current focus will be on:
• Autonomous Maintenance.
• Focused Improvement.
• Planned Maintenance
Planned Maintenance
Planned
Maintenance
Pillar
Asset inventory
Risk assessment
Maintenance Schedule
Maintenance Plan
Implementation
Monitoring & Evaluation
Asset Inventory
Inventory created
to ID all assets.
Asset tag applied to
enable rapid
inventory
identification
Risk Assessment
Mixer 4 10 Y 1234 N 10 10 10 Y 15 years ago 10 Y 10 1000000
0
0
0
PM ATPP
%
PM Plan
Inplace
Y/N
Site Asset
Number
Equipment
Load/Utilisation
%
How many
additional
M/C'sof the
same machine
type
RPN
Supplier
still
available
Y/N
Production/Delivery Risk
(How long can production run)
Machine
Criticality /
FMEA
inplace
Y/N
Date FMEA
last reviewed
RISK ASSESSMENT
Any
Rebuild/Upgrades
planned
(Y/N)
MACHINE INFORMATION
FMEA
Action %
inplace
Machine name
Machine
Age
Asset (high level) risk asset
identifies potential risks and
vulnerabilities in respect of the
business.
Plant Level –
Risk Assessment
Equipment Level –
Risk Assessment
Machine/机: Bike Owner/所有者:
Availability/可用性
Performance/性能
Quality/质量
Probability/可能性
Severity/严重
Detection/发现
Cost/成本
Safety/安全
Total/总
PRIORITY/优先
ID
1 Frame 3 3 3 1 3 1 2 3 486
2 Front Rim 3 3 3 1 3 1 1 3 243
2 Front Spokes 1 2 2 2 1 1 1 1 8
2 Front Valve 3 2 2 1 2 1 1 2 48
2 Front Inner Tube 2 2 2 3 2 1 1 2 96
2 Front Quick Release Clamp 3 2 3 2 3 1 2 3 648
2 Back Rim 3 3 3 1 3 1 1 3 243
2 Back Spokes 1 2 2 2 1 1 1 1 8
2 Back Valve 3 2 2 1 2 1 1 2 48
2 Back Inner Tube 2 2 2 3 2 1 1 2 96
2 Back Quick Release Clamp 3 2 3 2 3 1 2 3 648
5 Left Crank Centre Lock Cap 3 3 2 1 3 2 1 3 324
5 Left Crank 2 x Tightening Bolts 3 3 2 1 3 2 1 3 324
Components/组件 Comments and Actions/言论和行动
Cell 13 TPM Team
1. Frame
2. Wheels
3. Seat
4. Pedals
5. Crank
6. Front Deraileur
7. Back Deraileur
8. Brakes
9. Front Forks
10. Handlebars
11. Brakes / Gear Selector
12. Light
13. Waterbottle
14. Saddle Bag
15. Bike Pump
Weighted
Prioritisation
Number
• Equipment level risk assessment.
Consider risks from an OAE,
MFMEA… perspective
• Prioritize to identify what we
should pay attention to
Condition based
maintenance
Time based
maintenance
Optimized
mix
Break down
maintenance
Maintenance Cost
Technical Availability
+
+
TBM – Time-Based
Maintenance
Replace pre-defined time
intervals
BDM – Breakdown-Based
Maintenance
Operate component
intentionally until final failure
UBM – Usage-Based
Maintenance
Replace in pre-defined usage
intervals
CBM – Condition-Based
Maintenance
Replacement triggered by
monitoring condition.
• Determine the right maintenance strategy
for individual machines and machines
aspects.
• Must balance the availability objective
with cost imperative
Maintenance Schedule (Detailed)
• A maintenance
schedule is
created
• Specifies
maintenance tasks
that need to be
performed.
Spare Parts Control / Warehouse / Cribs
▪ Effective management of
maintenance spares is an important
contributor to machine availability.
▪ Spare Parts Control…the purpose is to
provide the right parts, in the right
quantity, to the right place, at the
right time.
Page: 1 Of 1
Shift Team Leader Maintenance
1
2
3
SEQ SYM
1.1
1.2
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1.4
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File:
Symbol Legend: Quality Safety Ergonomics Critical Knack Stockton Robots
needle is not in green.
If in red STOP machine and notify the Process Tech. and/or Supervisor.
If in red STOP machine and notify the Process Tech. and/or Supervisor.
Visually Inspect the pressure on the air flow valve for lock. Adjust the pressure if the
Visually Inspect the pressure on the air flow valve for extend . Adjust the pressure if the
needle is not in green.
If in red STOP machine and notify the Process Tech. and/or Supervisor.
Visually inspect Water Flow Meter. Any range of green is acceptable.
green range. If in red STOP machine and notify the Process Tech. and/or Supervisor weld on parts to specifications.
Visually Inspect the Argon Flow Meter . The ball in the sight glass should be in the STOP machine if in Red Not enough gas to form proper
Element Number 1
Operational Analysis Keypoint Reason
Station Stop #1
Element Name TPM Checks
Rev. Date: 5/9/2012 JOB ELEMENT SHEET
Control Block
Group Leader Engineer Department / Cell Roboic Welder #1014
If in red STOP machine and notify the Process Tech. and/or Supervisor.
needle is not in green.
Visually Inspect the pressure on the air flow valve for clamp. Adjust the pressure if the STOP machine if in Red If air is too high it can bend the part
E K Press #1 Autonomous Maintenance
1
1 2 3
45
3 Checksare
onback right
ofM/C
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5
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1.1
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01-28-20 01-28-20 01-28-20 01-28-20 01-29-20 01-29-20
TPM - SINGLE POINT LESSON (SPL)
Subject
Implementation of Visual Control on the
Pipe Chamfering Machine.
Number 132
Date January 23, 2020
Machine Code: M1061 Participants: George White & Anthony Harris
Prepared by : John Paul
Classification
Training
Dates
Instructors
John Paul John Paul John Paul John Paul John Paul John Paul
Participants
David Mathews
Edouard Lee
Joseph AlanHenry John
RichardPaul MichaelEvans
Improvement
Case
Problem
Case _____________
Basic
Knowledge
Leader Manager
TPM Coord.
Supervisor
X
BEFORE AFTER
Difficult access to
inspect the toothed
belt.
Easy access to inspect -
implementation of visual control
(polycarbonate sheet)
John Peter
01-24-20
Robert W.
01-24-20
LouisWood
01-27-20
Charles
Green
01-25-20
Work Procedures
Checklists
SPL’s
• Checklists and Procedures capture and document good practice
• Enables tasks to be codified for the whole organization and
activities to be effectively executed.
• Represent current best practices for craftspeople, across plants /
divisions, assuring consistency and continuity.
Maintenance Plan
Implementation
• Visual Management is used to make
defects visible and identify the
locations of defects at a glance…
• A tagging system is used to highlight
defects found during the
inspection/maintenance activity.
• Tags attached to the equipment
where problems are discovered.
Repair works orders arising from
Autonomous Maintenance,
Planned Maintenance,
Breakdown Maintenance must
be effectively managed. Ideally
use a visual management board
1st Shift
2nd Shift
3rd Shift
• This is a systematic process used to improve MRO
(parts) usage and costs.
• Used tools, maintenance parts etc. are collected
(bag and tag).
• They are analyzed using problem solving methods.
• Root causes of premature tool/parts breakage are
addressed, captured in standards and shared as
best practices.
Monitoring & Evaluation
T1 & T3
Daily
meeting
MTTR
MTBF
• The maintenance
activities are
monitored daily,
weekly, monthly.
• The evaluation on an
ongoing basis is to
ensure that this activity
is effective and
potential problems are
identified
We mainly use MTBF & MTTR in TPM!
MTBF = Run Time (or Total Operating Time) / Nb of Failures
(MTBF : Mean Time Between Failures)
MTTR = Total Time to fix the Failures / Nb of Failures (MTTR
: Mean Time To Repair)
Availability % = (MTBF-MTTR) / MTBF x 100
8. 8
TENNECO CONFIDENTIAL
ROOT CAUSE PROBLEM SOLVING
Main Aims:
• Root cause problem solving aims to identify and address underlying cause/s of a problem. By getting to the root cause of an issue, you can develop effective & sustainable solutions that prevent the problem from recurring.
Problem Complexity
‘A3’ – Plan-Do-Check-Act
Local
Simple/independent
Common
sense
Experience
sharing
A3
3 steps
8 steps
6 Sigma
Problem complexity/scope
Business
impact
$
Complex/interrelated
large
Local team, front line
Support team, area/FF
SME involvement, plant
Sporadic Repetitive problems Infrequent
Escalation
process
• Selecting appropriate level of problem solving effectively find the root cause/s whilst utilizing resources efficiently (effort, toolset…).
Problem type I:
• Abnormality or Gap to
known standard.
Correct a process to
get back within its
specifications/targets.
Describe the Problem
Analyse Problem
Identify Cause
Plan/ Select Counter Measure
Verify Effectiveness
Adopt & Standardize
Problem
description
What?
Where?
When?
How
many?
Who?
How
often?
POSSIBLE ROOT CAUSE
Use additional Problem solving & Quality tools as appropriate
Cause-and-Effect Diagram
PROBLEM SOLVING WORKBOOK
1
1
1
1
1
1
Systems / Man
Machines
Materials
Methods
Measurements
Environment
C
A
U
S
E
S
O
F
T
H
E
D
E
F
E
C
T
EFFECT OF THE DEFECT
1
1
1
1
1
1
Personnel
Machines
Materials
Methods
Measurements
Environment
1
1
1
1
1
1
Personnel
Machines
Materials
Methods
Measurements
Environment
▪ Take the selected possible causes
▪ Conduct 5 Why analysis
documenting all possible branches.
Get to root causes
▪ Use data & facts to
confirm/disprove validity of each
branch
▪ Plan trials and experiment to help
confirm assumptions
Plan to evaluate potential solutions based on…
• Effect on the problem
• Practicality
• Cost & Time to implement/utilize
• Acceptance
Consider…
• Procedures & Instructions
• Personnel Required and Training
• Production Scheduling
• Unwanted affects
• Experiments can demonstrate correlation /
causation between input and output.
• Have we identified the right ones?
• Do we need to go back to the Process Map?
• Irrespective – we have increased our learning
• We can rule out some inputs.
• We are seeking the “ truth ”
Process side:
Update of relevant standards
5S, Work instructions, Visual
management, TPM, Control
plans
FMEA’s, Drawings, …
System side:
• What prevented us from being first time right?
• How could we improve the system to avoid the
occurrence in the future?
• Adjust roles and responsibilities?
• Could we improve the system to signal
abnormality early enough before it turns out to
become a problem?
• Baseline: A3 report shall be used to
document the learnings from the closed
activity
• Ensures knowledge can be shared
between similar manufacturing lines,
process teams from same area, between
focus factories/value streams from same
plant, between plants, between regions.
• Problem needs to be solved at the lowest level. Use basic problem-solving approaches
first. If this approach is not successful then can escalate and utilize higher level
problem-solving e.g., TiPS, 8 steps, six sigma, etc.
Problem type II:
Improve towards ideal
state. Adjust the
process to reach new
specifications & better
performance.
• Multilevel Pareto analysis
helps you scope down &
focus; to maximize the
benefit.
• What is the problem.
• What part has a problem?
• New problem or chronical?
• Where did the problem occur
• Where did we identify the problem?
Who reported the problem?
• Who is affected by it?
• …..
• Process Mapping - GO & SEE !
• Walk the process
• Do NOT take process maps from
books!
• Where is the Point of Cause
• Where the problem has been
identified
• Where are possible escape points,
detection failures from the
process
Fishbone diagram is a
good tool to help
summarize all
potential inputs from
brainstorming, using
the 6M structure.
Problem
Manpower Machine Manpower Machine
Method Method
Material Material
How Made? (Occurrence) Why Made? (System)
Environment Environment
Measurement
Measurement
A3 Format
Local team, front line
Support team, area/FF
SME involvement, plant
B
usiness
impact
$
Problem complexity/scope
Local
Sporadic
Simple/independent
Repetitive problems
Complex/interrelated
large
Infrequent
Experience sharing
Common sense
8 steps
A3
3 steps
6 Sigma
Focus
PLAN
DO
CHECK
ACT
Define the Problem
Analyze the Problem
Identify “true” Causes
Reflect about possible
counter measures
Select the most appropriate
counter measure
Confirm the expected outcome
after implementation of the
counter measure
Verify the effect of proposed
counter measure on the problem
Compare Actual outcome with the
expected one
Adopt as permanent/Standardize
if objective is achieved
Confirm lessons learned
If the results are not satisfactory,
run another loop
Multi-Level Pareto
Possible
Cause
Potential
Cause
Potential
Cause
Actual
Cause
Root
Cause
Potential
Cause
Actual
Cause
Potential
Cause
Potential
Cause
Actual
Cause
Potential
Cause
Potential
Cause
WHY
WHY
WHY
WHY
9. 9
TENNECO CONFIDENTIAL
• Workstation layout &
visual representations of
all safety procedures and
quality checks.
• Tasks are broken down to
elemental levels for
times and movements.
This gives a cycle time for
the sequence which is
then compared against
the takt time.
Standardized Work Sheet
Properties: 3 main elements in Standard Work:
Relation to other PS –
elements:
• VSM
• Employee Empowerment
• 5S
• Visual Management
• Quality Tools
• JIT
Once times have been established on the Standardized
Work Documents the balance of the different jobs is
shown on the Work balance charts. Generally speaking
the types of activities performed with the use of a Work
balance chart can be divided into:
• Rebalance of work to implement and/or maintain full
work
• Rebalance of a process in the event of line speed
change
• Rebalance of work for improvement through KAIZEN.
• Graphically represent the
operator & machine time
for each step in the
sequence.
• Allows the work
sequence to be analyzed,
and overlapping (waste)
time to be eliminated.
This is often used in the
case of multi-machine
handling where one
operator is running more
than one machine.
Standardized Work Combination Table
• Determine the time per
work element. Typically a
work element is clocked
10 times, and the best
repeatable (not
necessarily the average!)
is chosen. The sum of all
work element times
describes the time
necessary to perform the
process.
Time observation sheet
• Determine the actual
processing capacity of each
machine in the work
sequence
• This ID’s where the bottle
necks are and which areas
need to be focused on to
ensure takt time can be met
by all the machines. It is
also used to check
processing capacity when
takt time is changed.
Production Capacity Sheet
Operators
A B C D E
Takt Time
1. Preparation
• Form a team
• Communicate to all affected personnel
what you are doing and why
2. Current State
• Calculate takt time
• Observe the process
• Capture the Work sequence elements
• Establish Standard time for element
• Capture current WIP
• Fill out the Standardized Work
Combination Table (if needed)
• Create Operator Balance Chart
• Fill out Standardized Work Chart
• Fill out capacity sheet if needed
3. Improve
• Analyze the completed sheets
• Analyze Videos (prefer. with
operators)
• Use checklists to identify
improvements (Multi-Machine
manning, ECRS*)
• Optimize work balance chart
and/or machine balance chart.
• Define improvement actions
4. Training and follow-up
• Fill out standard work
documentation for improved
processes
• Organize training
• Process confirmation
Operators
A B C D
Takt Time
Total Work Time (p. cycle)
Takt Time
= # of Operators
needed
Operator Requirement Formula
Total Work Time (p. cycle)
Takt Time
= # of Operators
needed
Operator Requirement Formula
WORK STANDARISATION
Main Aims: A method to document and control an agreed standard for performing operation and indirect tasks in a manner that will provide for Continuous Improvement
What is Standardized Work?
A standard work procedure is the result of organizing tasks in
the best sequence of steps to make the best use of people,
equipment, tooling and materials.
Objectives:
… Safety: the safest way to do the job
… Quality: Increase process stability by reducing errors and defects
... Cost: stipulate the manning level and rate of production... Delivery :
standardize output therefore ensuring we deliver parts on time
… Flexibility to takt: Provide a means to adjust resources to changes in
customer demand
… Kaizen: Provide a basis for improvement
… Training: Ensure organizational knowledge & best practices are
documented and followed
How to Proceed Work Balance
Standard work in process: This is items
of work that are required in order to
maintain a continuous cyclic flow of work
i.e. an operator in charge of many
machines will require std work in process
at each machine.
Takt Time: This is the time in which one
product/component needs to be
produced in order to satisfy the
customer demand. The formula is:
Takt Time = Operating Time
Customer Demand
Working Sequence: This is the sequence
or order in which a cycle of work is
completed. If the work sequence is not
specified then the output of the work
cannot be reliably specified.
Standardized Work Documents
STEP 1: Establish the Takt Time per
piece for the cell.
STEP 2: Determine the Total Manual Cycle Time
per piece for the
cell.
STEP 3: Determine the optimal manpower
required for the cell.
Optimal Cell Manning
Indirect Labour Standardization
Develop a standardized work model that can be applied
for every Indirect function
How
• List all Indirect functions, by department
• Identify characteristics for each Indirect function and
put them in groups
• Develop a concept/model to apply the standard work in
each group
How to Maintain
Leadership
Developed by Persons
doing the activity
Leader Routine
Verification
4. Frequent and brief interactions
3. Leaders should be learning and
understanding
2. Action-oriented and done sitting
with the employees
1. Scheduled and synchronized
• Process confirmation is the standardized
way by which leaders ‘go and see’ that the
process is delivering its target condition
and where it isn’t, understand and act on
the root causes
New Hires / Retraining
• New hire onboarding & training
should be tracked and
monitored to ensure all
operators on the line can
perform tasks per standard
work (SOP)
Standard Operations Procedure./ Sheet Skills Matrix
10. 10
TENNECO CONFIDENTIAL
SINGLE MINUTE EXCHANGE OF DIES (SMED)
Main Aims:
• SMED is a technique to reduce changeovers time (and optimize resources usage where possible)
Definition
E D
S M
Single Minute Exchange of Dies
Changeover
Production run
Product A
Production run
Product B
Last
part
First Good part
At rate
Changeover:
• Preparation (tool, material, document, etc...)
• Unload / Load — Remove / Install (tool, jigs, material, etc...)
• Locate / Set / Clamp (tool, jigs, etc...)
• Adjust / Try-out
• Clear away / Wrap the C/O
Performed between the processing of two different variants.
Changeover time is the time between the last good part of one
production run to the first good part of the Next Production run.
The time needed can be divided into external and internal
changeover time.
External Changeover:
Setup activity that can
be done while the m/c is
running
Internal Changeover:
Setup activity that can only
be done when the m/c is
stopped.
Current Changeover Time
External Internal
New C/0 Time
Internal
External
Step 4 :
Reduce
Step 3 :
Convert
Step 2 :
Separate/Externalize
Step 1 :
Identify
How to Proceed
Operations
Changeover Time
1
• Understand the needed operations to perform a changeover:
• ID all needed operations & sequence.
• Evaluate time for each operation.
• Collect information regarding needed items (like tools,
documents, gages, etc…).
• ID all safety concerns and the difficulties encountered.
• Keep separated those activities that can be considered as pure
waste like walking, searching, …
Step 1: Identify
Operations
External Internal
Changeover Time
Changeover Time
1
2
Step 2: Distinguish between INTERNAL & EXTERNAL operations
• Do not spend
money on step 2!
• Focus on low cost,
no cost, easier to
implement’
solution!
Previous part number New part number
Changeover
BEFORE AFTER
Some current Internal operations can be Externalized and be
done either:
BEFORE stopping the machine (the last part): as a
preparation
Or AFTER restarting the machine (the first good part at rate)
Operations
External Internal
Changeover Time
Changeover Time
External Internal
1
2
3
Step 3: Convert INTERNAL into EXTERNAL operations
• These solutions are typically more technical than organizational,
and often more expensive than the ones implemented during the
Step 2.
• Few very typical examples:
• Tool pre-assembly (e.g., Cassette-die, with cassette pre-assembled
externally)
• Tool pre-setting (e.g., Pre-setting bench)
• Tool pre-conditioning (e.g., Pre-heating bench)
Changeover Time
Operations
External Internal
External Internal
External Internal
External Internal
Changeover
Time
1
2
3
4
Step 4: Reduce both INTERNAL and EXTERNAL operations
• Start with the INTERNAL
activities as the machine
is stopped : impact on the
changeover time
• Continue with the
EXTERNAL activities :
impact on productivity
and availability of critical
resources (setters)
Minimize MOTION – less walking,
searching,…
• Improve storage & management of tools
and all needed items
• Parallel operations: more than 1
operator (Be very careful about
Safety!!!)
• Standardization of the main functions
• Focus on bolts/screws elimination
• Eliminate adjustment : Right First Time
• Automation / Mechanization
Bolts and Screws focus. Set-up Cart
Clearly defined SOP
Time
Date
Otherwise, we return to,
or find new, BAD HABITS.
Standardization Ownership Auditing
Eliminate Adjustment
Sustain
Track each changeover v target Escalation / Counter Measure
11. 11
TENNECO CONFIDENTIAL
VISUAL MANAGEMENT AND CONTROL
Main Aims:
• Implement systems that generate control within the working environment, enabling all members to differentiate between normal & abnormal immediately
Current State:
Waste (e.g. searching for tools)
Little transparency (due to lack of
orderliness and information
overflow)
Quality risks due to lack of
cleanliness
Too many accidents
Minimal member involvement
Future State:
Proactive waste elimination
Increases productivity / reduced cost
Improved working environment
No Accidents
Increase of morale and motivation
Member involvement in problem
resolution / continuous improvement
• Visual Management systems make the process
transparent – an abnormality can be identified
IMMEDIATELY. The status of the business is
communicated visually, at a defined frequency, and is
therefore controllable. Waste is driven out of the
process. The Visual Management concept provides a
common link through all of the PS elements. To
CONTROL the elements and tools (to realize their
benefits) we must SEE the condition.
• There is little investment required to achieve a high
return. The reaction of the organization to the visual
information is critical. Without recognition and
response, PERFORMANCE will not be achieved.
DEFINITION
See 5S
Clear identification of
parameters of control
Automatic equipment / human
response to parameters exceeding
the standard
Visual
Management
Visual
Control
5S
Implementation
What is Visual Management?
Objective
How to Proceed
Complete Current State Map (see VSM), grasp the current
condition
Set the STANDARDS
Communicate Visual Management purpose / benefit to ALL
employees
Select a pilot line / area
Implement Visual Management and assess impact upon
metrics
Confirm, and implement systems to maintain, and roll out
People record information by:
Sight: 83%
Hearing: 11%
Smell: 3.5%
Touch: 1.5%
Taste: 1%
Team Territory:
Identification of territory
Identification of activities, resources, products
Identification of the team
Markings on the floor
Marking of tools and racks
Technical area
Communication area and rest area
Information and Instructions
Neatness (broom)
Visual Documentation
Manufacturing instructions & technical
procedures
Displaying Indicators
Objectives, results, and differences
Visual ProductionControl
Computer Terminal
Productions Schedule
Maintenance Schedule
Identification of inventories and work-
in-process
Visual Quality Control
Monitoring signals for machines
Statistical process control (SPC)
Record of problems
Rendering Progress Visible
Improvement activities
Company project & mission statement
Visual Management Elements / Sub-Elements
1 – Workplace organisation – 5S
LINE ABC
A108 X292 CY089
A108 X292 CY089
Scrap
2 – Visual Displays & Escalation rules
4 – Visual Controls
3 – Visual Metrics
Presse
N12
Press
N12
5s
5S of the workplace is the 1st Step of
implementing visual management
Visual Display & Escalation Rules
• Visual Displays are methods to visually communicate important
information and to make them accessible to anybody (not only to
the “experts” of the area).
• This typically includes information like:
• Safety, Storage, Quality, Operation, Work environment,
Equipment, etc…
Scrap
• Visual Metrics are used to inform and
communicate in a comprehensive manner
results, progresses, status, etc…
• The purpose is to make performance visible.
• This is typically achieved by using:
- Visual representation like graphs, Pareto's,
action plans, etc…
- Ideally using colours, symbols, smileys, arrows,
etc…
Visual Metrics
Visual Control
• Visual Controls are about building Established Standards
into the workplace allowing easy management and early
abnormalities detection.
• Make the workplace environment communicate itself the
standard conditions.
• This is typically achieved by using:
• Visual aids on machine, visual scheduling and stock
management, visual documents (SOPs), etc…
• Ideally using limits, colours, alerts etc….
A B C
A
A
A
A B
C
B
D
D
E
E
E
E
F
F
F
Escalation rules should be displayed, trained
and audited
Escalation Rules
• Execute action to improve trends and to put the onus on
those responsible for the area to act.
12. 12
TENNECO CONFIDENTIAL
5S – WORKPLACE ORGANISATION
Main Aims:
• 5s methodology results in a workplace that is well organized, clean, uncluttered and safe, to help reduce waste and optimize productivity.
What is 5S?
Traditional State:
Too many accidents
Waste (e.g. searching for tools)
Little transparency
Quality risks
Cleanliness / orderliness are not part
of every operator‘s personal attitude
Minimal member involvement
Future State:
Increased safety
Transparent processes
Increase Transparency
Increased productivity / reduced cost
Increased morale and motivation
Member involvement
Enhanced plant appearance
5S is a systematic approach to improve cleanliness and orderliness in the workplace. The method can and should be used on the shopfloor as well as
in the office. Orderliness and Cleanliness make all processes transparent, so that an abnormality can be identified IMMEDIATELY. Therefore 5S is also the basis for Visual
Management:
Definition: Distinguish between what is, and what is not needed
Identify items that are not needed or never used throughout
a workday.
Attach a 5S Tag to items in question that may be unneeded
or broken.
Move tagged items to a temporary holding area.
Set a time to hold for the tagged items.
Review red tagged items and determine whether to use
elsewhere, store, or discard
Definition: A place for everything, and everything in its place...
Store all items close to where they are needed to avoid unnecessary handling and
transportation; order according to frequency and sequence of use
Set and document the Visual Standards
Identify and mark the home positions of equipment, flowracks, process and
pedestrian related issues (i.e. floor tape / walkways / shadow board)
Identify visually the minimum and maximum levels of relevant items (ie. Inventory)
Benefit: Clear Visual standards – measurement of organisational discipline.
THE ABNORMAL BECOMES CLEAR EASILY.
Definition: Cleaning is about self-discipline!
Cleaning involves all senses: Seeing, Hearing, Smelling and Touching
Prioritize safety, quality and reliability issues
(merely cosmetic actions have lowest priority)
define frequency to a level that sustains set standard
Benefit: Safe and friendly working environment, developing member
OWNERSHIP
Definition: MAINTAIN the STANDARDS through discipline
and habitual regular process confirmation by Leadership
Daily confirmation by ALL organisational levels
(NO unnecessary items, NO dirt, NO mess)
Documented record and visualisation
Continuous challenging of standards to drive
continuous improvement and operating culture (create
a crisis – continuous tension)
Use Kaizen workshops to improve standards
Recognition to areas / members with outstanding
effort / condition
1. SEIRI = Sort
2. SEITON = Set in Order
3. SEIKETSU = Shine
4. SEISOU = Standardize
5. SHITSUKE = Sustain
Definition: Do the right things in the right way, every time!
Set and document the standards and schedule for the first three S‘s
Assign responsibilities by department, group, team and individual
(VISUALIZE!)
Set management escallation
process for defined problem
trigger points (i.e. no. of
defective products exceeds
standard)
Cleaning and Setting things in
order become DAILY actions
Objectives
How to Proceed
Sort
Set-in-Order
Shine
Standardize
Sustain
Physical Change Procedures to sustain
Seiri
(Sort)
Seiton
(Set in order)
Seiso
(Shine)
Seikets
(Standardize)
Shitsuke
(Sustain)
To neatly
arrange and
identify parts
and tools for
ease of use
To conduct
a cleanup
campaign
To conduct seiri,
seiton, and seiso
daily to maintain a
workplace in
perfect condition.
To form the
habit of always
following the
first four S’s.
To separate needed
tools, parts, and
instructions from
unneeded materials
and to remove the
unneeded ones.
Reduces search
Fight waste
Improve productivity One TEAM!
Facilitates troubleshooting
Trust customers
Visual inspection Reduces unplanned downtime
More effective and more efficient
MUDA hunting
Ergonomics and safety improvement Quality improvement
Exposes problems
Spread discipline to follow the
standard
Improve and maximize space Personal and professional growth
Define Responsibilities
• Define areas (the whole site including to the
boundary of the site)
• Define champion for each area
• Train the local team members & champions
• Development of the champions by co-auditing
• Organize audit structure (cadence, audit
frequency)
• Follow-up audit results and action items
Recognition - Award Layered Audit Process 5S Audit