Better Lives. Better Planet. SM This presentation is the Confidential work product of Pall Corporation and no portion of this presentation may be copied,

Better Lives. Better Planet.SM

This presentation is the Confidential work product of Pall Corporation and no portion of this presentation may be copied, published, performed, or redistributed without the express written authority of a Pall corporate officer

© 2013 Pall Corporation

DevelopingEffectiveMetrics

Presenter: Ryan Theodore, Manufacturing EngineerDate: 4/22/2014 Presenter: Ryan Theodore, Manufacturing EngineerDate: 4/22/2014

2

Safety

In case of an emergency

Restrooms

3

Introductions

VMAMEDAttendeesPresenter

4

Agenda

Voice of the Customer

– Who, What, Where, When

Daily Management

– Genba

– Basic Process Measures

– 5S+

Lego Exercise

– What have you learned

Wrap-up/Questions

5

Who are the customers?

The customer is the one being served

A customer is someone looking for something to be provided to them

The customer sets the expectations

Customers can be internal and external

6

Voice of the Customer

VOC Must be surveyed, recorded and used as a key input to Quality Function Deployment activities and Continuous Improvement projects.

The VOC has the:– Wants– Needs– Necessities

The VOC Defines the Inputs From the Customer Perspective.

VALUE CAN ONLY

BE DEFINED

BY THE

CUSTOMER!

7

The Voice of the Customer

Let’s define wants, needs and necessities:– Wants: Customers overtly state that they want their product to

do or perform.

– Needs: These are statements that are more urgent than the wants of the customer.

– Necessities: These are statements that are driven by legal or regulatory requirements.

Capture VOC Early To Prevent “Scope Creep”

8

The Learning Curve

Cus

tom

erE

xpec

tatio

n

Cycle Time

CustomerDemands

Capability

Learning with Customers faster than the Competition

9

Each person tells 9 other people about their

problem, so 1,000 people know

4COMPLAIN

FOR EVERY 100 PROBLEMS

When a Customer Complains

10

Customer Loyalty

Lower SATISFACTION Higher

Greater

LOYALTY

Lesser

Highest satisfaction,greater loyalty

11

Introduction to Daily Management

Daily Management is the process to Manage Operations at the Genba

There are Four Pillars(Components)

of Daily Management

5S/SW are part of the “Lean Conversion” and are the minimum foundation to support DM

DAILY MANAGEMENTM

anag

ing

5 K

PI D

rive

rsA

t th

e G

enb

a

Gen

ba

Vis

ual

M

anag

emen

t

Gen

ba

Pro

ble

m S

olv

ing

Gen

ba

Lea

der

ship

Lean Conversion

12

Why Daily Management?

Site Leader

OperationsLeader

Value StreamLeader

Front LinePerformer of Work

Policy Deployment

Daily Management

Kaizen

0% 50% 100%

Time

How Do You Spend Your Time

13

Daily Management Relationship to Policy Deployment

Imp

rove

me

nt

DailyMgmt

Daily

KAIZEN

Year 0 Year 1 Year 2 Year 3 Year 4

Daily

Daily

DailyKAIZEN

KAIZEN

Policy Deployment

Policy Deployment

Once Breakthrough is achieved…process is standardized to

Daily Management! StrategicObjective is

Achieved!

MgmtMgmt

Mgmt

Mgmt

FoundationforPD

Policy Deployment

14

Policy Deployment – Flows from the top

Goal Deployment - Pall Global Operations Fiscal 2014 Level 2 Draft Version #2

Institionalize the EDR and Talent Management process

Through effective deployment of project management execute the Market aligned global architecture plan

By harmonizing PES and the OpEx lean tools create direct linkage between the plants and the customer

Drive the DFMA process through out the product design Group

Execute Characterization Pilot at Pensacola using 6 Sigma tools

Dev

elop

and

Exe

cute

the

Ope

ratio

ns L

eade

rshi

p Pr

ogra

m (O

LP)

Dev

elop

and

exe

cute

the

Ope

ratio

ns A

rchi

tect

ure

plan

Dep

loy

PES

Lea

n to

ols

to L

ever

age

and

Link

the

ente

rpri

se to

the

cust

omer

Inst

ition

aliz

e th

e D

FMA

Pro

cess

in n

ew p

rodu

ct d

esig

n fo

cuse

d on

the

top

30 N

PI

proj

ects

Impr

ove

Proc

ess

Cha

ract

eriz

atio

n w

ith P

ilot s

ites

Tsuk

uba

and

Iffra

mco

mbe

and

TB

D

Med

ia s

ite to

mee

t and

exc

eed

mar

ket q

ualit

y re

quire

men

ts

Impr

ove

Exte

rnal

cla

ims

DPP

M r

ate

from

500

to 3

20 b

y 7/

31/2

014

Impr

ove

DIO

from

X to

Y b

y 7/

31/2

014

Pas

t Due

s fr

om 1

day

pas

t Due

to h

alf d

ay p

ast D

ue J

anua

ry 3

1st 2

014

Impr

ove

Ope

ratio

ns fi

nanc

ial s

prea

d fr

om X

%to

Y b

y 7/

31/2

014

Impr

ove

Ope

ratio

n cu

stom

er s

atis

fact

ion

from

84%

to 9

3% b

y O

TD%

1/3

1/14

Opt

imiz

e an

d to

not

exc

eed

CA

PEX

Bud

get o

f $31

.5 7

/31/

2014

Exe

cute

Tal

ent M

anag

emen

t Mile

ston

es

NPI

spe

ed to

mar

ket

Exe

cute

Eng

inee

ring

org

aniz

atio

nal m

ilest

ones

Ric

hard

Jac

kson

Mat

t Buz

zeo,

Glo

bal V

P M

edia

Eng

inee

ring

Jim

my

Will

iam

s, G

loba

l VP

Eng

inee

ring

Will

iam

Che

ung,

VP

Asi

a O

pera

tions

Har

vey

Bon

d, V

P E

urop

ean

Ope

ratio

ns

John

McC

lear

n, V

P A

mer

ica

Ope

ratio

ns

Jeff

Bro

wn,

VP

Glo

bal A

eros

pace

Ope

ratio

ns

Mo

Fitz

gera

ld, G

loba

l Man

ufac

turin

g Te

chno

logy

Lea

der

Cra

ig B

ower

, Glo

bal O

pera

tions

Exc

elle

nce

Lead

er

Industry leading Quality - 5 sigma minimum 6 sigma SUS & OEMCustomer Satisfaction 93% to 100% less then 1/2 day past due Global Primary Responsibility

Reduce cost to Serve Regional Primary Responsibility

Organic growth at 2X Global Secondary Responsibility

Product Vitality to 25%M & A at 2X Global GDPTop Quartile Return on Capital performance

Resources

Richard Jackson, Sr. VP Operations

6/17/2013

Top Level 3-5 YearAnnual Target to

Top Level Business Strategic Plan Annual Target to Top Level Business Strategic Plan Annual Target to

Target to Improve(How Much)

Strategic Plan Initiatives

(What)



Top LevelImprovement

priorities(How Far)

Level 2 Improvement

Priorities(How)

Goal Deployment - Pall Deland Operations Fiscal 2014 Level 4 Version #1

Deland - Bart CondermanGW - Reduce manufacturing lead time for AX items by 50% using Operational Excellence tools and simplification of PES to deliver improved customer service and reduced inventory.W - Develop and integrate in-line quality assurance program to help achieve targeted DPPM reductionsGW - Execute operations architecture plan at or better than transition siteO - Execute EDR process - develop succession plan for key positions

O - EHS - Develop and execute EHS program

Dev

elop

Am

eric

a's

Dis

trib

utio

n st

rate

gy

Ope

ratio

naliz

e St

rate

gic

sour

cing

Stra

tegi

cally

app

ly O

PEX

cultu

re

Exec

ute

Am

eric

a's

oper

atio

ns a

rchi

tect

ure

plan

Ope

ratio

naliz

e th

e ED

R ta

lent

man

agem

ent p

roce

ss

Ach

ieve

Ext

erna

l DPP

M ra

te o

f 400

(4 .5

sigm

a) b

y 7/

31/2

014

Dev

elop

Qua

lity

cert

ified

trai

ners

/ope

rato

rs b

y 1/

31/2

014

Impr

ove

DIO

from

77

to 6

9 da

ys th

roug

hout

Q4

FY14

Impr

ove

Ope

ratio

n cu

stom

er s

atis

fact

ion

from

63%

to 8

5% b

y O

TD%

1/

31/1

4

Ach

ieve

ope

ratio

ns a

rchi

tect

ure

chan

ges

on b

udge

t whi

le m

aint

ain

1 da

y pa

st d

ue .

Exec

ute

Tale

nt M

anag

emen

t Mile

ston

es

Red

uce

cost

to s

erve

from

21%

to 1

4%

Red

uctio

n of

A-X

Y le

ad-ti

me

by M

ar 3

0 20

14

Impl

emen

t ris

k as

sess

men

t pla

nt w

ide,

act

ion

and

mee

t FY1

4 m

ilest

ones

Bar

t Con

derm

an, V

P D

elan

d O

pera

tions

Am

it G

hugu

ri, S

r. O

pera

tions

Man

ager

John

Bas

ham

, Sr.

Ope

ratio

ns M

anag

er

Bob

Hug

hes,

Sr.

Purc

hasi

ng M

anag

er

Jim

Crit

elli,

Sou

th R

egio

nal O

PEX

Lead

er

Rob

Jef

fery

s, Q

ualit

y M

anag

er

Mat

t Cum

min

gs, H

R D

irect

or

Nia

ll O

'Con

nor,

Sr. O

pera

tions

Man

ager

Ken

Fry

, EH

S M

anag

er

Industry leading Quality - 5 sigma minimum 6 sigma SUS & OEM

Customer Satisfaction 93% to 100% less then 1/2 day past due Primary Responsibility

Reduce cost to Serve Secondary Responsibility

Organic growth at 2X Global

Product Vitality to 25%

M & A at 2X Global GDPTop Quartile Return on Capital performance

Resources

Deland Operations Bart Conderman

9/3/2013


Top Level Business Strategic Plan Annual Target to

Top Level Business Strategic Plan Annual Target to

4th Level Improvement

Priorities(How)



3rd Level Improvement

Priorities

Goal Deployment - Pall America's Operations Fiscal 2014 Level 3 Draft Version #1

America's John McClearnDevelop America's Distribution strategy

Right size PPR overhead structureOperationalize Strategic sourcing

Strategically apply OPEX culture

Execute America's operations architecture plan

Operationalize the EDR talent management process

Inst

ition

aliz

e th

e ED

R a

nd T

alen

t Man

agem

ent p

roce

ss

Thro

ugh

effe

ctiv

e de

ploy

men

t of p

roje

ct m

anag

emen

t exe

cute

the

Mar

ket

alig

ned

glob

al a

rcht

ectu

re p

lan

By

harm

oniz

ing

PES

and

the

OpE

x le

an to

ols

crea

te d

irect

link

age

betw

een

the

plan

ts a

nd th

e cu

stom

er

Ach

ieve

Ext

erna

l DPP

M ra

te o

f 233

(5si

gma)

by

7/31

/201

4

Ach

ieve

Rec

ogni

tion

of a

5 s

igm

a ca

pabl

e M

anuf

actu

ring

envi

ronm

ent i

n at

le

ast 2

maj

or B

ioph

arm

cus

tom

er A

udits

Q3

and

4 FY

14 (H

eike

to a

ssis

t with

m

etric

)

Impr

ove

DIO

from

105

to 7

5 th

roug

hout

Q4

FY14

Impr

ove

Ope

ratio

n cu

stom

er s

atis

fact

ion

from

80%

to 9

3% b

y O

TD%

1/3

1/14

Past

Due

s fr

om 1

day

pas

t Due

to h

alf d

ay p

ast D

ue th

roug

h Q

3 an

d Q

4 FY

14

Firs

t pro

duct

ion

cell

in p

lace

Mar

ch F

Y14

Ach

ieve

ope

ratio

ns a

rchi

tect

ure

chan

ges

on b

udge

t with

Max

imum

XX

(TB

D)

cust

omer

dis

rupt

ion.

Exec

ute

Tale

nt M

anag

emen

t Mile

ston

es

Red

uce

Frei

ght i

n co

st b

y 2x

AO

P

Impr

ove

BK

OEE

on

Pape

r mac

hine

by

50%

Dev

elop

Cer

amic

s bu

sine

ss p

lan

by m

arke

t by

end

of Q

3 FY

14

John

McC

lear

n

Mik

e G

afro

n

Dan

Kee

fe

Bar

t Con

derm

an

Car

los

Palo

u

Ted

Form

an\

Lara

Ken

ig

John

Dan

is

Industry leading Quality - 5 sigma minimum 6 sigma SUS & OEMCustomer Satisfaction 93% to 100% less then 1/2 day past due Global Primary Responsibility

Reduce cost to Serve Regional Primary Responsibility

Organic growth at 2X Global Secondary Responsibility

Product Vitality to 25%Organic Growth 2X Global GDPM & A at 2X Global GDPTop Quartile Return on Capital performance

6/3/2013

Resources

America's Operations John McClearn

6/3/2013



3rd Level Improvement

Priorities(How)



(What)

2nd Level Improvement

Priorities

Global Regional

Site

Global Operations Goal Deployment Performance Scorecard

Deland - Bart Conderman Period 1 1

150 Plan 150 150 150 150 150 150 150 150 150 150 150 150

Actual 20 44 47 34 20 16

Deployed to: Rob JeffreysScore Keeper Steve Bergeron

Unit of Measurement : Defects Per Millions based on POR's

Plan 2 3 6 8 8 8 14 15 16 18 19 20

Actual 8 8 8 8 8 8

Deployed to: Rob JeffreysScore Keeper Simmone Johnson

Unit of Measurement : Number of Trained Operators

75 Plan 77 76 75 75 74 73 72 72 71 70 70 69

74 Actual 84 88 81 74 73 80

Deployed to: Bob HughesScore Keeper Kathleen Whitley

Unit of Measurement : Local DIO

Plan 60% 65% 70% 75% 75% 75% 80% 80% 85% 85% 90% 90%Actual RequestActual CCGI 61% 52% 58% 60% 58% 63%

Deployed to: Amit Ghugari, Bob Hughes, John BashamScore Keeper Tom Pelchy

Unit of Measurement : OTD Delivery to Request GI Date %

Plan $750 $1,100 $650 $470 $470 $470 $470 $470 $470 $470 $470 $470

Actual $716 $2,540 $1,564 $1,823 $1,281 $944

Deployed to: Amit Ghugari, Bob Hughes, John BashamScore Keeper Tom Pelchy

Unit of Measurement : Past Due $ External Sales

Plan EDR Rev EDR Rev EDR Rev EDR Rev

Actual 12/5/2013 3/7/2014

Deployed to: Matt CummingsScore Keeper James Gallagher

Unit of Measurement : Edr review and documentation

Mar Apr May Jun Jul

Execute Talent Management Milestones

Sept Oct Nov Dec Jan FebGoal Deployment Measurement JOP

FY14 Goal

YTD Annualized

ResultsAug

Mar Apr May Jun Jul

Achieve operations architecture changes on budget while maintain 1 day past due .

$300


FY14 Goal

YTD Annualized

ResultsAug

Goal Deployment Measurement JOPFY14 Goal

YTD Annualized

ResultsAug

63% 85%Improve Operation customer satisfaction from

63% to 85% by OTD% 1/31/14

Mar Apr May Jun JulSept Oct Nov Dec Jan Feb

Mar Apr May Jun Jul

Improve DIO from 77 to 69 days throughout Q4 FY14

77 69


FY14 Goal

YTD Annualized

ResultsAug

Mar Apr May Jun Jul

Develop Quality certified trainers /operators by 1/31/2014

0.0 20


FY14 Goal

YTD Annualized

ResultsAug

Mar Apr May Jun Jul

Achieve External DPPM rate of 400 (4 .5sigma) by 7/31/2014

4 150


FY14 Goal

YTD Annualized

ResultsAug

Value Stream

15

Daily Management – The “HOW”

“Lean Conversion” is critical first step to drive results at Genba

Each Plant is at different point in the “Lean Conversion”

Basic 5S/SW is the foundation of Lean Conversion

Lean Conversion

Daily Management

VMKPIs

ContinuousImprovement

Lean Conversion Process and Daily Management Process are intertwined. To maximize improvement, you cannot do one without the other.

16

Five Key Performance Indicator (KPI) Drivers

In Daily Management,we manage these

at the Genba

(S) Safety(Q) Quality(D) Customer Service(I) Inventory(P) Productivity

17

Genba

■ Japanese term

■ “The place where the truth can

be found."

■ “The value proposition"

■ “Go and See”

■ ”Learn to See”

18

■ A Genba visit is often simply called a customer visit with unique characteristics.

■ Main purpose is to observe (in silence)

■ Many eyes, cross-functional, one thing

■ Normal from abnormal conditions

■ Abnormalities should be apparent and visible

■ Visual management

■ Occasionally question, rarely guide or direct

Genba

19

■ Often the client (user or operator) is asked to describe what he/she is doing while he/she is doing it (5 why’s, etc)

■ Open ended questions

■ Moments of truth

■ In the spirit of

Continuous Improvement

Genba

20

■ Genba occurs in the context where the product or service is used.

■ This allows direct observation

■ Of problems that arise (or have occurred)

■ Workarounds that are applied

■ Capabilities or services that are never used (waste).

Genba

21

■ Genba provides insight and deep understanding into the thought processes and problems which often reveal differences between the customer's mental model and the model of the developers or providers of the product or service.

Genba Outcomes

22

■ The customer (user, or operator) will often express wishes or needs while working in context that would be forgotten or suppressed in a different context such as a structured interview or sales meeting

■ Common cases for a customer visit include:

■ Rapidly Solve Problems

■ Enhancing the features or usability of products (especially software)

■ Enhancing the features of devices (especially ones aimed at very broad or very niche consumers)

Genba (project or service)

23

Must Not Must Do

Provide the right tools

Set goalsCreate smoke screens Grovel Be clueless

Give up

Cover up

Stress out

Leaders Visual Guide

Set the Strategy

Genba theprocess

Think of atleast 7 ways to do better

Kaizen yourstandard work

Have a visionObserve the process Find the WasteHide in the

office

Throw fits

Blame the worker

Blame the Measure

Tamper with the Measure

Throw People at Problems

FlexMuscles

Show Boat

24

Managing the Five KPI Drivers

DAILY MANAGEMENT

Man

agin

g 5

KP

I Driv

ers

at th

e G

enba

Gen

ba

Vis

ual M

anag

emen

t

Gen

ba

Pro

blem

Sol

ving

Gen

ba L

eade

rshi

p

Lean Conversion

Safety Quality Delivery Inventory

Productivity

25

“Symptoms” Ask Yourself - Is your “Real Place” currently…

Managers rarely visit the shop floor.

Safety Meetings take place in conference rooms.

5S discipline not apparent.

Questions about Safety performance, cell metrics cannot be answered by either managers or Associates.

Safety issues present.

Safety Improvement is stagnant (no target).

Associates not engaged, not participative.

Minimal cross-training is taking place in jobs with repetitive motion.

No Repeatable and Robust process for maintaining equipment. Associates not engaged in this process.

Kaizens do not account for potential Safety concerns.

Employees have no voice or no mechanism of reporting safety hazards.

26

Safety

Define Safety KPI for facility and to be managed in each Cell

Define Jump off Point (Audit) for facility and each Cell

Define Target for facility and each Cell

Implement Visual Management for Safety KPI

Communicate and Train

27

5S

Train 5S broadly and deeply

Target cells for 5S kaizen

Implement 5S Checklist and 5S Patrols in each Cell

Monitor through 5S Checklist and Patrols and take Corrective Action

DEFINITION:5S:

A process to ensurea clean, orderly,

safe and productive workplace.

5SSUSTAIN

5SSUSTAIN

1SSimplify

4SStabilize

Straighten2S

Scrub3S

28

Associate Involvement

Each associate (operator/front line leader) must understand Safety Concerns and what their responsibility is to prevent and avoid

Must have Safety KPI targets and actual posted

Associates must be actively engaged with preventing accidents and unsafe conditions

29

5S Defined

5S relates to the beginning of five terms that begin with the letter S that describe workplace practices conducive to visual control and workplace organization. It is one of the foundations on which lean manufacturing is built.

Sort

Set in Order

Shine

Standardize

Sustain

30

SORT (Organization)

Clearly distinguishneeded items fromunneeded itemsand eliminatethe later

SET IN ORDER(Orderliness)

Keep needed items in the correct place to allow for easy and immediate retrieval

STANDARDIZE(StandardizedCleanup)

This is the condition we support when we maintain the first three 3S’s

SHINE(Cleanliness)

Keep thework areaswept andclean

SUSTAIN(Discipline)

Make a habitof maintainingestablishedprocedures

Benefits

Improved Safety Promotes Teamwork Improved Quality Reliable Delivery Lower Cost Reduces Breakdowns Improved Moral

5S

31

To survive and grow as a business we must reduce cost. Implementing “preventive controls” can and will stop the generation of defects and poor results before they take place.

Benefits Improved efficiency Workplace visual controls Improved quality Workplace ownership and pride Improved safety and work environment

Why Do 5S Plus?

5S has proven to reduce waste and cost

32

8 Wastes

1. Defects

2. Overproduction

3. Motion

4. Material Movement

5. Waiting

6. Inventory

7. Processing

8. Not utilizing Employee Talent

33

Seiri - Sort -Housekeeping. Separate needed items from unneeded items. Keep only what is immediately necessary item on the shop floor. Seiton - Set in Order - Workplace Organization. Organize the workplace so that needed items can be easily and quickly accessed. A place for everything and everything in its place. Seison - Shine - Cleanup. Sweeping, washing, and cleaning everything around working area immediately. Seiketsu - Standardize - Consistant. Keep everything clean for a constant state of readiness. Shitsuke - Sustain - Discipline. Everyone understands, obeys, and practices the rules when in the plant.

The 5S System

34

Before After

Machine Shop

35

Before After

Cell Workstation

36

Plus – Safety

All changes made during the implementation of 5S should be done with safety in mind

An area that actively sustains 5S promotes a safe work environment

Perform job safety analysis, set goals and targets, and continually monitor performance

Safety Always!

37

5S Checklist

38


DAILY MANAGEMENT

Man

agin

g 5

KP

I Driv

ers

at th

e G

enba

Gen

ba

Vis

ual M

anag

emen

t

Gen

ba

Pro

blem

Sol

ving

Gen

ba L

eade

rshi

p

Lean Conversion


Productivity

39

“Symptoms” Is Your “Real Place” Currently…

Large team of inspectors (10%) (Receiving, 1st piece, Final Part, Finished Goods)

All inspection treated as indirect labor

As material received, detailed receiving inspection performed

Prior to parts being run, the set-up and first piece have to be signed off by an inspector

Before parts go into stockroom, all material must undergo product inspection

As finished goods complete, inspectors test and inspect the product again

Quality Manual and Procedures available but not known to people on shop floor

40

Quality

Establish process inspection; identify what to check, when to check, and how to check

Train operators and quality technicians

Establish statistical process control (SPC) charts as appropriate

Where assembly cells are established:

Put test and equipment in the cell

Identify all points where checks/inspections are needed (Standard Work Sheet)

Set up scrap bins as necessary

PRODUCT PROCESS

Goal is quality at the source

41

S : ? P : ? C : ?

So, Not Really New, but still efficient…

■ Date of birth: 1920’s - Western Electric / Dr. Walter Shewhart

■ Used to identify controlled & uncontrolled variation, also known as common & special causes of variations

■ Tries to find the process signals in all of the noise■ Uses control charts as main tool

S = Statistical techniques used to examine process variation

P = Process, ANY Process

C = Control: Controlling the process through active management

42

SPC Example

Assumption Is Not Always A Good Approach

2

3

Scr

ap L

evel (%

)Scr

ap L

evel (%

)

1

J F M A J F M A

Party TimeParty Time

■ The factory scrap level is at a year low of 2%.■ Manager presents an award to the plant.■ Ceremony in the cafeteria: pizza and refreshments for all!■ “Everyone should be proud of what you’ve accomplished”.

APRIL…

43

A Turn For The Worse…..

Summer Vacation Effect?

2

3

1

J F M A M J J J F M A M J J

Manager wants to take back awardManager wants to take back award

■ Three consecutive months of scrap increases.■ Manager wishes he could take back the award.■ Recognition has backfired.■ Instead of holding the gains, scrap went right back up.■ Manager decides: “This group just needs tough management!”

Scr

ap L

evel (%

)Scr

ap L

evel (%

)

JUNE…

44

Scrap War

Christmas Preliminary Effect ?

2

3

1

J F M A M J J A S O N DJ F M A M J J A S O N D

No more “Soft Management”No more “Soft Management”

■ Scrap rises to a value of 2.6%. ■ Manager decides to take action.■ A “special meeting” is called to solve this problem once and for all.■ After a sound lecture on the importance of scrap, the manager leaves.■ Employees aren’t sure what to do. Besides, they have other metrics which

have more importance. So… they do nothing.

Scr

ap L

evel (%

)Scr

ap L

evel (%

)

NOVEMBER…

45

Scrap: A Life of It’s Own?

No Celebration?

■ Manager has seen reduced scrap levels since the end of last year. “Things are looking-up!” (although nothing had been done to change the system).

■ His takeaway: “A tough management style gets results!”

Manager concludes: “Tough love makes things happen”

Manager concludes: “Tough love makes things happen”

2

3

1

J F M A M J J A S O N DJ F M A M J J A S O N D J F M A M JJ F M A M J

Scr

ap L

evel (%

)Scr

ap L

evel (%

)

JUNE…

A year later…

46

Let’s look at it with SPC eyes…

Observe, Analyze, Understand, Then Decide…

2

3

1

J F M A M J J A S O N DJ F M A M J J A S O N D

UCL

J F M M J J A S OJ F M M J J A S O

LCL

Scra

p L

evel (%

)S

cra

p L

evel (%

)

■ Manager “ Hey, I made my decision based on data - How can I go wrong ?”

■ YOU:“Your decisions were made from observing high and low points as signals. When In reality, it was all variation. Look at the data, there was no significant change in the process.”

47

Examples of Special Causes

Unfortunately, There Are So Many…

Pro

cess R

esp

on

se

Time

■ Special causes are assignable and can include:> Weather (season, time of

day)> Lighting Conditions> Machine Type> Machine Age> Maintenance> Supplier> Operator> Shift> Supplier> Material Lot> etc…

Special causes

48

Built in Quality Checks

Have operators/ assemblers doing the inspection

Need to build quality into the cell and process

Watch calibration and sensitivity of equipment in the cells

49

Poke-yoke

Where appropriate and needed build mistake-proofing into the process

If you have a toolroom, take advantage of their skill-set and creativity

50

Measure Quality Results Every Day

1st pass inspection by cell (# of defect/total production) normally expressed in PPM. Roll up yields can also be used. Make sure process is kept simple

Review control charts and re-establish control limits as needed.

Returns from customers measured in PPM

Scrap $

Visual Bins normally red labeled “Scrap”

Simple means that anyone can understand

51

Address Issues with Necessary Tools

Identify issues through KPI performance

Consider volume, customer expectation, and impact when selecting projects

Pareto issues and select Problem Solving tool needed

Push process down. Have cell leaders, value stream leaders, and manufacturing engineers working with operators to improve

If on-going action required, develop corrective action plans or countermeasures. Post in cell.

Document corrective actions with visual aids. Use photos to assist with quality information

Keep all associates involved with improvements and expectations

52


DAILY MANAGEMENT

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Commitments not made

Lead times too long

Past due dollars high

Customer Service Dept. receiving many calls

Customers waiting on phone and hanging up

Hedge orders happening

Operations spending lots of time furnishing Customer Service with promise dates (which don’t happen)

Schedules changing daily and/or hourly

Workbook Pg 17

54

On Time Delivery (OTD)

■ On-time delivery is measured based on customer requested date with the three following rules

– Oldest orders are filled first (where possible) – i.e. once an order is missed it must be a priority to be filled over new “on-time” orders. (Missed orders are only counted against delivery on the day they are missed, not when shipped)

– Shipments missed due to Credit Holds “Count” as on-time delivery misses and should be highlighted in the pareto as appropriate

– All parts on consignment at the customer are considered to be delivery “hits” if the consignment levels remain between the min and max. If the consignment level falls outside the min/max levels it is considered a delivery “miss.”

A Measure of Performance Against Customer Request

55

On – Time Delivery Exercise

Plant A ships 77 lines before they are due and 12 on the day they are due out of 121 total lines requested. What is the plant’s OTD?

Plant B ships 10 orders that were on credit hold 2 days after they were to ship, 12 lines early, and 30 on the day they were due out of 65 lines requested. What is the plant’s OTD?

Plant C ships 34 lines to the customer 1 day late, 12 lines two days late, 16 on the day the lines were due and 84 on-time. What is this plant’s OTD?

56

On-Time Delivery Solutions

Plant A ships 77 lines before they are due and 12 on the day they are due out of 121 total lines requested. What is the plant’s OTD?

– (77 + 12) are on-time / 121 total lines = 73.5% OTD

Plant B ships 10 orders that were on credit hold 2 days after they were to ship, 12 orders early, and 30 on the day they were due out of 65 orders requested. What is the plant’s OTD?

– (12 + 30) are on-time / 65 total lines = 64.6% OTD (remember orders late due to credit hold “count” as an OTD miss)

Plant C ships 34 lines to the customer 1 day late, 12 lines two days late, 16 on the day the lines were due and 84 on-time. What is this plant’s OTD?

– You really can’t tell with the data given here. How many total lines were requested? Always seek complete information! How many of you said 57.55%?, How many 68.4%?

57

Past Due

■ Past due is defined as the monetary value of all orders with a customer requested due date earlier chronologically than the current date

All Sales / Deliveries With A Requested Delivery Date Earlier Than Today!

58

Reduce Past Due

Need information indicating Past Due by cell

Establish root cause of Past Due (paretos need to get to root cause)

Need to be able to age past due

Establish goals to reduce based on cell output now achieving

Achieve goals for past due

$ $ $ $ $ $

$ $ $ $ $ $

$ $ $ $ $ $

$ $ $ $

© 2005 . All Rights Reserved

59

Establish Credibility by Making Your Commitments

Measure the OTD

Measured against request dates (when the customer wants the product).

Need system for measuring daily

All info and measurements must be down to cell level

Establish goals for OTD based on cell output. Outputs may have to be increased if improvements in OTD not occurring fast enough.

Good daily visual for cell as to how performance going

The OTD measurement must be used in conjunction with past due numbers


“Listen to the customer”

60

Measurement to CUSTOMER REQUEST

Identify true customer request date

Understand how your organization captures what the customer wants

Monitor progress-establish goals for Customer Request and Lead Times

Monitor continued reduction of lead times

Measure actual lead time for all orders


“Understand importance of delivery for each customer type”

61

Monitor Performance

Continue to improve OTD against goal

Continue to reduce lead times

Measure at the cell daily

Understand root cause of why you missed each delivery


62

Associate Involvement

Each associate (buyer/operator/cell leader) must understand standard work and what their responsibility is

Must be able to see orders as they are entered

Need to have a process so they can work to customer priorities

Commitment to and understanding of goals

Cell team needs to keep up with and have visibility of customer request date

Use this time when lead times are being reduced as an opportunity to cross train operators.


“The whole team needs to understand goals”

63

Visual Management

End of line output/ scorecards

Past due performance (actual vs goal by date)

OTD performance (actual vs goal by date)

Lead times – continue to reduce lead times (as velocity increases cost decreases)


“End of line output – goal should be against customer demand (frequency, planned, actual and why you missed)”

64


DAILY MANAGEMENT

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Inventory replenishment based on a computerized system such as MRP

System contains several modules such as routings, processing, BOM’s, order launching

Orders that are issued daily/weekly are generated by demand from either firm orders, planned orders,or forecasted requirements

Labor and overhead are tracked by order through each processing department

As parts are completed they are entered into the system and stored in a warehouse

Cycle counters maintain the accuracy of the inventory being stored. Transactions are made each time material comes in or goes out of warehouse

Large staff of materials department required to perform these functions (planners, order launchers, warehouse personnel, material handlers, cycle counters, etc.)

When finished goods are required, components are issued from warehouse to assembly. When complete, finished product is inspected and either goes to shipping or back to the warehouse.

Workbook Pg 17 © 2005 . All Rights Reserved

66

Establish JIT Orders with suppliers

Review expectation with supplier Establish annual requirements (+/-) Place blanket order with kanban being

release method Negotiate reduced lead time

(target is transport time) Negotiate supplier maintaining 2 kanban

quantities on hand You will need to commit to some raw

material and finished goods


67

Establish Inventory Goals

Primary Inputs and Outputs Defined:

What is being put into the cell

How much will be shipped out of the cell

What is scheduled to be received

Standard value of incoming material

Other

If based on above, ending inventory exceeds cell planned levels, additional actions needed:

Have customer demands changed?

Do kanban cards reflect latest lead times and safety stocks?

Review all “A” parts

Periodic reviews of Excess and Obsolete items

Purchasing needs to work closely with production group


68

Implement Inventory Management System

Develop shipping forecast

Determine inventory reduction based on shipping forecast

Review scrap, E&O, and material to be returned

Establish the total inventory reduction $

Review kanban boards and determine $ volume of inventory to be received

Compare output vs input

Make adjustments

Must have involvement at cell level

Need to review weekly


“This is an inventory management system”

69

Measure results and take countermeasures

Inventory Measurement

– Measure by cell level if possible

– Set up measurements so that inventory dollar value is broken out by cell

– Establish inventory turns measurements


70


DAILY MANAGEMENT

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Time gathering systems throughout the plant

May still have a dispatching system with time keeper

Earning labor based on what goes into the warehouse

Labor separated by indirect and direct

Standards include classic definition of direct labor

Indirect labor included in variable overhead

Closed order variance reports issued well after orders completedWorkbook Pg 17


72

Understand and be able to determine where takt time comes from

Relate takt time to your process

Understand the difference between takt time and cycle time

Understand the basics of cycle time analysis including the time observation form

Takt Time

73

The time requirements to make your customer happy

Takt Time

* The periods of time must be consistent (shift, day, week…)

Net time of operation per

period*

Customer requirements per period*

Divided by

Proportion of daily production (in seconds per piece)Production is equal to the customer demand

74

The periods of time must be consistent

Example Calculation

50”50”For one shift per day: Takt Time =

Customer Requirements/Period 540

Net Time of Operations/Period = 450 = 0.83 min

Takt Time =

540540

Units / day

÷ 20

Amount of working days/month

10,800

Monthly Requirements (units)

Customer requirements

Cleaning: 1 @ 10 minutes-20 -10

Break: 2 @ 10 minutesOperation per shift

480Shift: 480 minutesNet time

Net time of operation 450450

0.83 * 60 = 50 sec

75

Cycle Time is different from Takt Time

Cycle Time

Machine Cycle Time

Operator Cycle Time

Machine Automation Time

Inspection

PackDelay

Unload / Load / Start

T/T

76

Bar Chart of Takt Time Vs. Cycle Time

Time

Operation Number

10

20

30

60

40

50

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

Takt Time = 50 sec

Operation Cycle Time = 150 sec

Number of Operations = Operation Cycle Time

Takt Time= 150 sec

50 sec3 Op=

Bar graphs visually show balance of operations

77

Bar Chart of Takt Time Vs. Cycle Time

Visual reference of operation cycle time and takt time of a specific cell

Determine the suitable number of operators (operations) necessary for a line or cell

Show what is necessary to balance the line

Using this tool provides:

Time

Operation Number

1010

2020

3030

6060

4040

5050

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

Takt Time = 50 sec

Operation Cycle Time = 150 sec Operation Cycle Time = 150 sec

Number of Operations = Operation Cycle Time

Takt Time

78

Perform Cycle Time Analysis

Observe tasks and group into small elements

Establish lowest repetitive cycle time by operator

Use to create standard work

Process Observer Date

Step Task 1 2 3 4 5 6 7 8 9 10 Task Time NOTES

CYCLE TIME CAPTURING SHEET

Lowest and RepeatibleCycle Time1 Cycle Time

9

10

7

8

4

5

6

1

2

3

79

Date: Process: Observer: Date


:08 :53 :38 :23 :13 :54 :42 :29 :17 7:02

:18 1:04 :48 :34 :23 4:06 :53 :40 :27 :13

:20 :06 :51 :37 :25 :09 :55 :43 :29 :16

:30 :15 2:01 :48 :34 N/O 5:05 :53 :38 :27

:33 :18 :05 :51 :37 :23 :09 :56 :41 :31

:43 :27 :14 3:01 :46 :32 :19 6:06 :52 :40

:46 :30 :16 :04 :48 :35 :22 :09 :54 :42


Lowest and RepeatibleCycle Time1 Cycle Time

9

10

7 Sit down in the chair

8

4 Write on the flipchart

5 Recap the marker and put it down

6 Return to chair

Rise from the chair1

2 Walk towards the flipchart

3 Take the marker and open the cap

Time Observation Form

No Observation Detected

Collect real data on the process

80

Date: Process: Observer: Date


:08 :53 :38 :23 :13 :54 :42 :29 :17 7:02

8 7 8 7 9 6 7 7 8 8

:18 1:04 :48 :34 :23 4:06 :53 :40 :27 :13

10 11 10 11 10 12 11 11 10 11

:20 :06 :51 :37 :25 :09 :55 :43 :29 :16

2 2 3 3 2 3 2 3 2 33

:30 :15 2:01 :48 :34 N/O 5:05 :53 :38 :27

10 9 10 11 9 10 10 9 11

:33 :18 :05 :51 :37 :23 :09 :56 :41 :31

3 3 4 3 3 4 3 3 4

:43 :27 :14 3:01 :46 :32 :19 6:06 :52 :40

10 9 9 10 9 9 10 10 11 9

:46 :30 :16 :04 :48 :35 :22 :09 :54 :42

3 3 2 3 2 3 3 3 2 2


46 44 46 48 44 - 47 47 45 Lowest and RepeatibleCycle Time

48 441 Cycle Time

7

10

2

10

3

9

3

9

10

7 Sit down in the chair

8

4 Write on the flipchart

5 Recap the marker and put it down

6 Return to chair

Rise from the chair1

2 Walk towards the flipchart

3 Take the marker and open the cap

Time Observation Form

Omitted Observations

Lowest and Repeatable

Observation Times

Consistency is key!

81

Labor Reporting

Measure Labor Output

End of cell scorecard

– Pieces per time period as a plan

– Keep making improvements to attain goals

Overall measurements

– Productivity

– Excess Labor (difference between actual and standard)

– Plant level measurements may/should be different than cell level

MEASUREMENTS:

PRODUCTIVITY:Sales $ per hour worked in cell

Pieces produced per hourSales $ per employee

EXCESS LABORNeeded especially if sales $/

hour is the productivitymeasurement in cells wherethe price per unit can show

large fluctuations


82

OEE: Operational Equipment Effectiveness

■ Operational Equipment Effectiveness helps you see and measure a problem so you can fix it, and provides a standardized method of benchmarking progress.

■ OEE is the framework for measuring the efficiency and effectiveness of a process, by breaking it down into three constituent components:

– Availability - takes into account Down Time Loss (events that stop planned production for an appreciable amount of time)

– Performance – takes into account Speed Loss (factors that cause the process to operate at less than the maximum possible speed, when running).

– Quality - takes into account Quality Loss (parts which do not meet quality requirements).

Often it is more important to focus on the OEE Factors than the metric.

Relentlessly Work to Eliminate OEE Losses

83

OEE – Calculation Tool

Shift Length 8 Hours = 480

Short Breaks 2 Breaks @ 15 Minutes Each = 30 Minutes Total

Meal Break 1 Breaks @ 0 Minutes Each = 0 Minutes Total

Unplanned Down Time 37

Ideal Cycles per minute 0.25

Total Pieces 68

Reject Pieces 8

Pieces

Pieces

Minutes

Production Data Calculated Data

Minutes

PPM (Pieces Per Minute)

Support VariablePlanned Production Time

480 - 30 = 450 Minutes

Actual Operating Time

450 - 37 = 413 Minutes

Good Pieces 68 - 8 = 60 Pieces

Calculated Data

Shift Length - Planned Breaks

Planned Production Time - Unplanned Down Time

Total Pieces - Reject Pieces

Calculation

OEE Factor Calculation

AvailabilityActual Operating Time /Planned Production Time

413 / 450 = = 91.8 %

Performance(Total Pieces / Actual Operating Time) / Ideal Pieces per minute

68 / 413 / 0.25 = 0.6586 = 65.9 %

Quality Good Pieces / Total Pieces 60 / 68 = = 88.2 %

Overall OEEAvailability x Performance x Quality

0.9178 x 0.6586 x 0.8824 = 0.5333 = 53.3 %

0.9178

0.8824

OEE %Calculated Data

85.0%Overall OEE

99.9%Quality

95.0%Performance

90.0%Availability

World ClassOEE Factor

85.0%Overall OEE

99.9%Quality

95.0%Performance

90.0%Availability

World ClassOEE Factor

data points on each shift Need to collect these 4

A Little Data Collection Can Lead to Big Opportunities for Improvement !

84

OEE Example 1 - Solution

■ Availability: Planned Production time: 480 – 30 = 450 minutes

Shift 8 hrs X 60 min = 480 minutes

2 breaks X 15 min = 30 minutes, Lunch is unpaid = 0

Downtime = 37 minutes

Now it is Obvious Where to Start Improvements!

Availability = Planned Production time – Downtime ( 450 – 37)

Planned Production Time (450) = .918 X 100 = 91.8%

■ Perf Eff: Ideal Cycles per minute = 15 test cycles per hour / 60 minutes = 0.25 test cycles per minute

Processed Amount = 68 tests

Actual Operating time = Planned Production time- Downtime = 450-37= 413 minutes

Perf Eff = Processed Amount / Actual Operating Time (68/ 413)

Ideal Cycles per minute (0.25) = .659 X 100 = 65.9%

RQP = Processed Amount – Defect Amount ( 68-8)

Processed Amount 68 = .882 X 100 = 88.2%

■ RQP: Processed Amount = 68 units

Defects = 8

OEE = Availability X Performance Efficiency X RQP = 53.3%

85

Productivity – Calculation Tool

Date:21-Apr-14

HourTarget Output

Actual Output

Hourly Productivity Scrap

Downtime (Minutes) Scrap



Downtime (Minutes) Reason Notes

8:00 AM 33 34 103%9:00 AM 33 28 85% 20 Equipment Issue Sensor broken on outrun table10:00 AM 25 28 112%11:00 AM 33 36 109%12:00 PM 16 17 106%1:00 PM 33 20 61% 15 Other End Caps out of Spec2:00 PM 25 35 140%3:00 PM 33 34 103%4:00 PM 33 37 112%5:00 PM 25 0 0% 60 60 Material Shortage Ran out of Spiral Wrap6:00 PM 0 0%7:00 PM 0 0%8:00 PM 0 0%9:00 PM 0 0%

10:00 PM 0 0%11:00 PM 0 0%12:00 AM 0 0%1:00 AM 0 0%2:00 AM 0 0%3:00 AM 0 0%4:00 AM 0 0%5:00 AM 0 0%6:00 AM 0 0%7:00 AM 0 0%

CAT CELLOverall Productivity

93Hourly Productivity

109

Corrugator Sideseal Spiral wrap End cap

Part NumberF1389409F1389409F1389409F1389409

F1389409

F1389409F1389409F1389409F1389409F1389409

93 109

Save and Open New sheet

86

Standards to Match Revised Labor System

Charge all labor against cell (both direct and indirect)

After a given period of time, compare the total labor to the previous standard labor

Create a new ratio (total labor : standard labor)

Multiply old standard by new ratio


87

Measure Productivity and Excess Labor By Cell

REPORT PURPOSE

Productivity by cell To measure change at lowest level

Excess labor by cell Assist with variation in selling price and planning labor

Kaizen funnel To know where attention needs to be focused

VISUAL MGMT PURPOSE

End of line output/scorecards

To see how cells are performing as it is happening

Productivity ($/hour, etc.) vs. goal

To see how cell is performing to a goal

Excess labor vs goal To see if labor is on track with plan


88

Take Corrective Action at the Lowest Level

How to Improve Productivity

Observe areas with issues (ie: quality, output, material flow, down-time, customer service, batching, etc.)

– These are areas where gains can be made quickly

– Implement root cause corrective actions and document on SQDIP board

Have mfg engineer/Value stream leader/ cell leader address these specific areas. Take corrective actions quickly at the cell.


“It is important to take action once problems are found”

89

Use Kaizens to Address Major Issues

Schedule Kaizens with documented expectations where issues cannot be resolved quickly

Keep emphasis on continued improvement in all cells

For cells meeting plan, work with operators and cell leaders to set new level of expectation

Use walk-arounds to follow-up and monitor


“There is no such thing as status quo… If you’re not getting better, you’re getting worse”

90

Use Productivity Information to Assist in Managing Plant

How to Use Labor Information

Use $ sales/labor hour to assist with establishing manpower requirements by cell

Determine where manpower needs to be shifted from one area to another

Determine where cross-training needs to occur

Use this information to develop forecasting

– Monthly forecast

– Annual operation plan

Use to ensure correct head-counts and proper distribution of labor

Use to calculate excess labor requirements


91

Genba Visual Management

DAILY MANAGEMENT

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Daily Management Visuals…Standardized Format

Mandatory to use before going to next level of DM Visuals“Cell scorecard at the end of the cell indicates how the team is doing versus customer

needs”

Goal Met Goal Met Goal Met Goal Met Goal Met

Goal Met But Attention needed Goal Met But Attention needed Goal Met But Attention needed Goal Met But Attention needed Goal Met But Attention needed

Goal Missed Goal Missed Goal Missed Goal Missed Goal Missed

Not Scheduled Not Scheduled Not Scheduled Not Scheduled Not Scheduled

Date WHO DUE STATUS Date WHO DUE STATUS Date WHO DUE STATUS Date WHO DUE STATUS Date WHO DUE STATUS

SAFETY/5S: Pareto Chart

ACTIONROOT CAUSEISSUE

5S / SAFETY Quality

SAFETY/5S: COUNTER MEASURES

QUALITY ISSUES / SCRAP

QUALITY: Pareto Chart

Delivery Inventory Productivity

MATERIAL SHORTAGESPAST DUE HOURLY GOAL VS. ACTUAL

ISSUE ROOT CAUSE ACTIONISSUE ROOT CAUSE ACTIONISSUE ROOT CAUSE ACTIONISSUE ROOT CAUSE ACTION

DELIVERY: Pareto Chart INVENTORY: Pareto Chart PRODUCTIVITY: Pareto Chart

QUALITY: COUNTER MEASURES DELIVERY: COUNTER MEASURES INVENTORY: COUNTER MEASURES PRODUTIVITY: COUNTER MEASURES

1

3

5

23

8

12 16

20

2

4

6

7 9 10

11 13 14 15

17 18 19 21 22

2524

GOAL

0

LAST REPORTEDINJURY(Days)

26

28

30

31

29

27

1 2 4

5 6

7 8

10 11

14 15

17 18

20 21

22 23 24

9

13

12

16

3

25

19

3130

29282726

1

5

8

11

14

17

20

23

3 4

7

10

13

16

19

22

25

2

6

9

12

15

18

21

24

3130292827

26

1 2 3

4 5 6

7 8 9

10 11 12

13

16 17 18

19 20

22 23 24

25

14 15

21

28 29

26

31

30

27

“At a Glance” view of

Performance

“Everyday Kaizen”

Countermeasures taken at Cell

Level

Pareto of issues

93

Daily Management Visuals…Hourly Scorecard

Date:Goal Actual Cumulative

Goal / Act

ChangeoverGoal / Act

Reason for Miss

11:00 - 12:00 / /

12:00 - 1:00 / /

1:00 - 2:00 / /

2:00 - 3:00 / /

3:00 - 4:00 / /

4:00 - 5:00 / /

5:00 - 6:00 / /

6:00 - 7:00 / /

7:00 - 8:00 / /

8:00 - 9:00 / /

9:00 - 10:00 / /

10:00 - 11:00 / /

11:00 - 12:00 / /

12:00 - 1:00 / /

1:00 - 2:00 / /

2:00 - 3:00 / /

3:00 - 4:00 / /

4:00 - 5:00 / /

5:00 - 6:00 / /

6:00 - 7:00 / /

7:00 - 8:00 / /

8:00 - 9:00 / /

9:00 - 10:00 / /

10:00 - 11:00 / /

Hourly Count Sheet

94

Daily Management Visuals…Standardized Format

+ Q D I P

Sub-Plantor Large Cell

Safety Incident Rate PPM (External)

Gross $or

Inventory Turns

$ / # of Associates

Cell

# of Recordable Accidents

or# of Near Miss

Accidents

PPM (Internal)or

First Pass Yield

Gross $or

Kanban Past Dues

Equivalent Pcs / # of Associate

Hrs

Use at all above

Past Due($ or Lines)

orOTD

(To Request Date)

Guidelines for '+QDIP' DM VisualsLevel

MeasuredWhat to Measure

95

Visual Management Checklist

Charts & signs must be visible at a distance. Should be directed toward a group, not individuals

where appropriate Visuals should communicate a Plan and Actual. Involve all employees in the visual management

process. Do not use visual management as a means to control or

punish…Drive to solve problems in a blameless environment.

Should be understandable…consider the audience. Should be “At-a-glance” (think “three-second” rule). Should be standardized (over time). Everyone should

know what they are looking at as they move from cell-to-cell and plant-to-plant.


96

Visual Management Process

STAND UP MEETING

(5 MINUTES)

OPERATOR FILLS OUT CELL

SCORECARD at GIVEN TIME INTERVALS

TEAM LEADER AUDITS HOURLY

Value stream leader AUDITS TWICE

DAILY

OPERATOR UPDATES

SQDIP BOARD

PREPARE NEXT DAYS

SCORECARD

END OF

SHIFT

WALK THROUGH &REVIEW SQDIP BOARD

BY MGMT TEAM

ANALYZE RESULTSAND COUNTER-

MEASURE


97

Genba Leadership

DAILY MANAGEMENTM

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Genba Leadership

5 KPI Drivers

Genba Visual Management

Genba Problem Solving

Genba Leadership

– Rigorous KPI Leadership

– Walk the Floor

– Stand up Meetings

– Walk-Around Meetings

– Auditing

What doyou

need tolead

in the Genba?


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Elements of Rigorous KPI Leadership

1. Define the Parameters

2. Set People Up to Win

3. Uphold the Parameters

4. Lean Principles... No other option


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Leadership Element 1: Define the Parameters

Set Expectations

Make it clear what Winning looks like

Make it clear what Losing looks like

Only define expectations that you are serious about


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Leadership Element 2: Set People Up to Win

Are they set up with the right resources, people, time, dollars, capital?

How do you provide feedback to the associates?

How do you communicate to them?

How do you manage with positive expectancy?


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Leadership Element 3: Uphold the Parameters

Inspect what you expect

React to what you find

Consistency is critical across the factory

Apply feedback that is:

– Immediate

– Specific

– Positive and negative

– Coach to Win

The walk around process upholds parameters


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High proportion of a Genba Style leader’s time is spent in the Genba (with users) so that supervisors and leaders can be intimately involved in issues as they arise.

Their presence informs their decision making and speeds resolution of problems.

This attitude is driven by the belief that all customer value is created in the Genba and it is therefore the qualities of the Genba (Genbatsu) which will determine the success of the company.

Genba – Leadership Style

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Genbatsu ( 現物 )

“The actual product”:

– Mindset teaching that when there is a problem somewhere, one should get as close to the problem as possible before proposing a solution.

– By observing the actual process or problem at the actual place (Genba) where it is occurring, the problem solver is able to obtain actual data or facts

– This will improve the chances for a better solution.

– This in in contrast to most Western thinking in which managers make decisions in a remote location (like behind a desk), armed only with second hand information from others.

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Walk the Floor

Walk the Floor EVERYDAY

Schedule time if necessary to ensure that you will walk the floor

Reach ALL areas of the floor regularly – don’t just stay on the main isles

Talk with Associates and Listen

Observe how SQDIP can be improved

Act immediately to implement issues that can be resolved short-term

FLOOR DEFINITION:

Could be production

floor, office or any other

place where work is done(Your Genba)


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Stand Up Meeting

Why: Communicate key information to start the shift operations

When: Daily (morning or shortly after shift start for every shift)

Duration: 5 min. max per cell or collection of cells

Where: Standing in the cell or team area

Who: Value stream manager, cell leader, materials and technical support etc.


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Lego Exercise

Better Lives. Better Planet.SM

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Better Lives. Better Planet. SM This presentation is the Confidential work product of Pall Corporation and no portion of this presentation may be copied,