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Achieving Change In Today’s Marketplace

John Van Horn

01/02/2009

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Today’s Manufacturing and Packaging challenges :

Producing more from existing equipment Reducing operating costs while meeting marketing

demands Reducing maintainability & maintenance costs Generating greater R.O.I. on manufacturing issues Defining the best approaches to solving capacity

problems, bottlenecks, training , and defect/variance detection and elimination or minimization

Knowing how efficient your key machinery, cells etc. are Identifying which machines are a problem that should be

maintained better or replaced outright Identifying by machine, how much downtime you have Measuring actual throughput versus theoretical Identifying what are the current, major, repeating downtime

issues that need immediate attention Having real-time asset management Knowing how much it will cost to bring your

lines/cells/plant up to near world class O.E.E

In order to insure profitability in today’s economy

dynamics in this very competitive marketplace I can

use my unique background to create innovative,

effective and efficient concepts to help deal with

constant changes in:

Customers Customer requirements Sourcing changes Vendor changes, Distribution points of activity New product mix, Forecasting errors Impacts of seasonality Inventory costs Constant expediting issues

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Productivity Drivers

Machine Data

Quality Manpower

Rework

Waste

Problem Reports

Customer Complaints

High Stress

Quick TurnsLabor Efficiency

Inexperience

Efficiency

Downtime

Cycle Time Reporting

Completeness of Data

Currency of Data

Accuracy of Data

Profitability Drivers

Costs Assets

Supply Chain’s Reliability

Responsiveness & Flexibility

Perfect Order Fulfillment

Actual; Delivery Performance to Committed Date

Fill Rates

Flexibility of Production

Response Time of the Supply Chain

Order Fulfillment Lead Time

Total Cost of Supply Chain

Value Added Productivity

Inventory Days of Supply

Cycle Time cash to cash

Net Asset Turns

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Operational Excellence

Operational Excellence tools I use involve:

Applying Lean Six Sigma techniques to your processes Continuous Improvement Improving equipment utilization Waste Elimination Improving overall equipment effectiveness (O.E.E.) versus

the World Class standard of 85% Using Visual Indicators to make timely corrective actions

unavoidable• Identify defects increase• Identifying variances to theoretical speeds• Variance in performance across shifts, lines,

equipment• Minimizing or eliminating bottlenecks

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Typical Opportunities For Finding and Selection of Lean Six Sigma Opportunities

• Is there a management philosophy of “ How are we doing?’ (doing things well) as opposed to “Are we doing the right things?”• Any step(s) that is/are consistently making less than KVI(s)• Anything that has recently been audited• Anything that has recently been rejected• Anything that is handled many times• Are there processing steps running at “sub-process cycle times”• Any process/step that constantly is a “rush”? • Any inspection steps • Any process with excessive downtime• Any process whose owner is not known and/or who performs the • next task (the customer)• Any given machine with a lot of downtime• Any machine requiring many repetitive spare parts replacement• Any product or process running on sub-optimal ines/setups• Any steps that are non-value added or value enabling controls?

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Value Stream Mapping Checklist For Streamlining

Existing or New Processes

What does each step cost, how long does it take and can that step

be eliminated or combined at a minimum with another task? Number of times that the product is actually touched (either being

moved or processed)? Number of queues (existing or needed / planned for the future

state/new process)? Total time at step (in queue for step, processing and transport time)? Individual step and each process distance’s traveled (either current or new process)? Any transports of product where damage might creep in? Any steps with either currently or planned waiting for parts, manpower. Takt time in place? Would that make sense for a given customer Space required for step? What are the current or future state constraints? Where are the productivity inhibitors

VSM (continued)

What are the steps that affect processing profitability? Is there adequate cross training in-place for key processing steps? Any potential capacity / throughput bottleneck/constraint? Can the order “born to cradle” cradle time (order generation thru

processing time) be dramatically reduced? Where is there any opportunity to dramatically cut the

total overall cycle down without spending huge capital? Step is or can be mistake proofed? Step has or will be standardized/best practice method ? Is each step value added or non-value added? Can product/package size changeover time be greatly reduced? Does each of the processing steps has adequate SOPs in-place? The Best Practice / method(s) are now in place? Best equipment / apparatus for the given step is now in-place? Adequate protective elements now in-place to minimize product damage during all of the processing steps? Is the original OEM speed, quality yields, etc. and the equipment’s

site acceptance testing levels?  

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My Problem Resolution Process (PRP)

Using the PRP master template, I can quickly delve into any issue/process variations/opportunity as to :

What happened? When did it occur? Where did it occur? Who did it happen to? Why did it happen? How often is it occurring? Which line, which plant (unique to?) What approach will solve the problem/issue? What steps would be needed to resolve the issue? What systems or processes in the company should be addressed or changed to remedy future issue? What resources will be needed (both internal and/or external)?

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My Means of Identifying Losses That Affect The Throughput of Any Manufacturing , Packaging Operation or Supply Chain

Throughput Optimization will improve the quality, speed, cost and customer service and that is achieved by identifying :

• Equipment Downtime• Equipment Failures• Shutdown Losses• Processing Failures• Repeated Production Planning Adjustments • Non-Value Added Activities

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Project Management

I have been either the Project Sponsor, Project Originator, or even

the Project Facilitator for many innovative, successful projects.

I know to optimize the key factors involved with successful project

management as to:

Scope Deliverables Milestones Resources

Budget Issues Roles/Responsibilities Risks

I always take into consideration what business processes

and/or business units will be affected, any locations and/or

applications that will be changed, the risks involved, any

contingencies needed and insure that the given project meets

the business’s needs when the given project is fully integrated?

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MY LEAN SIX SIGMA ARSENAL THAT I CAN BRING TO BEAR HERE

•Benchmarking•Best Practices•Brainstorming / Breakthrough – Out-of-the-box Thinking•Cause and Effect Fishbone/Ishikawa Diagramming•Continuous / Process Improvement•Design For Manufacturability (DFSS)•DMAIC Define, Measure, Analyze, Improve, Control•FMEA Failure Modes & Effects Analysis Tool•Kaizen Events•Muda (Waste Elimination of Overproduction, Defects, Time, Transport, Processing, •OEE (Overall Equipment Effectiveness) •Pareto Charting•Poka Yoking (Error / Mistake Proofing)•Process Mapping / Flow Charting•PSDM Problem Solving and Decision Making•Reproducibility and Repeatability Of Processing Steps at Different Sites•Scientific Method•SMED Single Minute Exchange of Dies (Setup Reduction)•SPC Statistical Process Control•Takt Time

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Typical Results That I Would Expect To Accomplish Here If I Am Given The Chance To Become Part of your Site Operations Team

Typical benefits with my influence : Streamlining the new product launch cycles with

costing accuracy, timeliness of info for right people Leaner Streamlined Supply Chain Logistics Project ROI’s of just 90-180 days Highlighting sources of errors, variances, defects Capacity enhancement of 10% - 15% Productivity improvement of 15% - 20 % Maximization of your current asset utilization