Transcript
Page 1: Delphi - “Eyes for Waste” & “ Eyes for Flow”
Page 2: Delphi - “Eyes for Waste” & “ Eyes for Flow”

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“Eyes for Waste” & “ Eyes for Flow” “Eyes for Waste” & “ Eyes for Flow”

Brian O’Neill – General Director, Manufacturing Operations, Delphi Steering

December 3, 2004

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2003 Revenue

* Does Not include Inter-Sector eliminations of ($2.0B)

Dynamics, Propulsion Thermal & Interior Sector

2003 Sales $14.2 B•Engine & Emission Management Systems

•Energy Management Systems

•Vehicle Dynamics

•Thermal Management Systems

•Interiors

Electrical, Electronics, & Safety Sector

2003 Sales $12.9 B•Integrated Body Electronics

•Powertrain Electronics

•Chassis & Safety Electronics

•Audio Systems & Mobile Multimedia

•Safety Systems

•Electrical & Electronic Systems

•Product & Service Solutions

Automotive Holdings Group

2003 Sales $3.0 B•Generators

•Instrumentation

•Other

Enterprise Technologies

Sales & Marketing

2003 Sales $28.1 B*

Lean Manufacturing

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4As of October 16, 2003

Mexico & South America

Manufacturing sites:Employment:

Joint ventures:Technical centers:

Manufacturing sites:Employment:

Joint ventures:Technical centers:

4951,000714

4951,000714

Manufacturing sites:Employment:

Joint ventures:Technical centers:

Manufacturing sites:Employment:

Joint ventures:Technical centers:

4776,50094

4776,50094

Manufacturing sites:Employment:

Joint ventures:Technical centers:

Manufacturing sites:Employment:

Joint ventures:Technical centers:

6149,000910

6149,000910

Asia Pacific

Total DelphiManufacturing sites:

Employment:Joint ventures:

Technical centers:

Manufacturing sites:Employment:

Joint ventures:Technical centers:

Manufacturing sites:Employment:

Joint ventures:Technical centers:

Manufacturing sites:Employment:

Joint ventures:Technical centers:

1410,000176

1410,000176

171186,5004234

171186,5004234

U.S. & Canada Europe & Middle East

Extensive Global Presence

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Customer Breadth

Represents only a sample of our customers

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What’s Lean?

Over

Short

Demand

Capacity =

$$

$$$

Lean = Minimum Gap

TIME

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Approach for matching capability…

…through the identification and elimination of

Fluctuation – Overburden - Waste

Implement the best possible combination of :

…focusing on:

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Time

The Lean JourneyP

erfo

rman

ce

INSTABILITY

(No sustainableImprovement)

STABILITY

(SustainableImprovement)

• Get control of quality• Get to schedule

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Lean & Six Sigma = Control of Variation

66

What’s Lean?

Over

Short

Demand

Capacity =

$$

$$$

Lean = Minimum Gap

TIME

77

Approach for matching capability…

…through the identification and elimination of

Fluctuation – Overburden - Waste

Implement the best possible combination of :

…focusing on:

88

Time

The Lean Journey

Per

form

anc

e INSTABILITY

(No sustainableImprovement)

STABILITY

(SustainableImprovement)

•Get control of quality•Get to schedule

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Lean is often Counter Intuitive

One piece flow Slowing down operations Small lot containers Training in too large a bucket Overproduction Learn & Do Some systems shield the waste

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Flow Can Be Deceiving

River flow

Air flow

Traffic flow

Information flow

Product flow

Manufacturing flow

Engineering flow

Process flow

What we “see” is not always what is

happening

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B E F O R EB E F O R E A F T E A F T E RR

Stockroom Variation

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Changeover Variation

B E F O R EB E F O R E A F T E A F T E RR

Bolts increase the Bolts increase the time of changetime of change

Quick change Quick change devices devices

implementedimplemented

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Original container from supplier

Workplace Variation

B E F O R EB E F O R E A F T E A F T E RR

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B E F O R EB E F O R E A F T E RA F T E R

Chasing critical production requirements

Build to Order/Level Scheduling Board

Scheduling Variation

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Cycle Time Variation

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B E F O R EB E F O R E A F T E A F T E RR

Waste Stream Variation

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High MaintenanceHigh Utility CostPermanent Sump Investment $125,000

Commercial washers Investment $700

B E F O R EB E F O R E A F T E A F T E RR

Uptime Variation

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Labeling Variation

Must improve System

Integration between :

• Quality Control• Engineering• Manufacturing

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Operator Instruction Variation

Helpful Notes

Or

Standard Work

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Step 1. Select Focus

Cost Reduction Focus ?

Regional Focus ?

Development Focus ?

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Step 2. Select Metrics

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Step 3: Analyze for Leverage

%

0

0.5

1

1.5

2

2.5

3

3.5

4

EPS - RACK & PINIONMACHINING

EPS - RACK & PINIONASSEMBLY

EPS - I-SHAFT &JACKET MACHINING &

ASSEMBLY

EPS - COLUMN FINALASSEMBLY

EPS - ASSIST MECHASSLY & WORM

MACHINING

EPS - MOTORCONTROLLER &

SHAFT & HOUSING

No

rmal

ize

d S

core

Build Perf.

Inspectors

FTQ

Overtime

Scrap

Maint.

Tools

Processing

0

0.5

1

1.5

2

2.5

3

3.5

4

EPS - RACK & PINIONMACHINING

EPS - RACK & PINIONMACHINING

EPS - RACK & PINIONASSEMBLY

EPS - RACK & PINIONASSEMBLY

EPS - I-SHAFT &JACKET MACHINING &

ASSEMBLY

EPS - I-SHAFT &JACKET MACHINING &

ASSEMBLY

EPS - COLUMN FINALASSEMBLY

EPS - COLUMN FINALASSEMBLY

EPS - ASSIST MECHASSLY & WORM

MACHINING

EPS - ASSIST MECHASSLY & WORM

MACHINING

EPS - MOTORCONTROLLER &

SHAFT & HOUSING

EPS - MOTORCONTROLLER &

SHAFT & HOUSING

No

rmal

ize

d S

core

Build Perf.

Inspectors

FTQ

Overtime

Scrap

Maint.

Tools

Processing

Normalized Weighted Sum

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Let’s look at this three-step process using

a product quality example

Hypothetical Example

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Step 1: Select Metrics

Customer Shut Down Actual Customer B Complaints Actual Warranty Incidents % Actual Warranty $ ActualSwitch D Defect 1 Cosmetic Defect 94 Component D Defect 0.164 Switch A Failure Appl. A $3,300,000

Lever Defect 1 Wrong/Missing Parts 88 Switch A Failure Appl. A 0.134 Switch B Failure $1,330,000Missing Parts 1 Switch A Failure 60 Noise 0.123 Switch A Failure Appl. B $167,000

Switch C Defect 1 Noise 32 Switch B Failure 0.116 Component C Defect $99,000Switch B Failure 28 Switch A Failure Appl. B 0.088 Noise $56,000Switch C Failure 25

Lever Defect 23

Total 4 350 0.625 $4,952,000

FTQ Actual Supplier Complaints Actual Online Inspection Actual Scrap $ ActualFinal Assembly 915 Switch A Supplier A 145 Noise 336 Shaft $70,000Switch B Failure 687 Switch A Supplier B 68 Switch A Not Seated 268 Bracket A $29,000

Lever Defect 615 Housing Supplier 44 Component C Not Seated 210 Mount Pad $26,000Cosmetic Defect 350 Lever Supplier 35 Component A Not Seated 173 Motor $26,000

Missing Component A 295 Component A Supplier 32 Switch B Wrong Setting 111 Label $24,000Missing Component B 282 Component B Supplier 21 Switch B Not Seated 67 Pivot Mechanism A $22,000

Bracket Defect 260 Switch D Supplier 19 Lever Missing 64 Tie Down $21,000Lever Defect 231 Switch A Supplier C 15 Switch C Not Seated 63 Bracket B $18,000

Component A Defect 220 Component C Supplier 15 Component D Missing 61 Pivot Mechanism B $17,000Component B Not Seated 54 Bracket Assembly $14,000

3855 394 1407 $267,000

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Step 2: Determine Importance

“Customer is King” Weighting:

3X for Customer Shutdown

2X for Customer Complaints & Warranty

1X for Plant Performance Metrics : First Time Quality

Supplier Complaints

Inspection

Scrap

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Step 3: Analyze for Leverage

1. Determine weighting on metrics

2. Normalize each metric

3. Multiply by weighting

4. Add the resulting values by failure type

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Normalized Weighted Sum

Customer B Complaints Actual Normalized Weight = 2Cosmetic Defect 94 0.269 0.537

Wrong/Missing Parts 88 0.251 0.503Switch A Failure 60 0.171 0.343

Noise 32 0.091 0.183Switch B Failure 28 0.080 0.160Switch C Failure 25 0.071 0.143

Lever Defect 23 0.066 0.131

Total 350 1 2

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Look for leverage by grouping common failures

Customer Shut Down Weight = 3 Customer B Complaints Weight = 2 Warranty Incidents % Weight = 2 Warranty $ Weight = 2Switch D Defect 0.75 Cosmetic Defect 0.537 Component D Defect 0.525 Switch A Failure Appl. A 1.333

Lever Defect 0.75 Wrong/Missing Parts 0.503 Switch A Failure Appl. A 0.429 Switch B Failure 0.537Missing Parts 0.75 Switch A Failure 0.343 Noise 0.394 Switch A Failure Appl. B 0.067

Switch C Defect 0.75 Noise 0.183 Switch B Failure 0.371 Component C Defect 0.040Switch B Failure 0.160 Switch A Failure Appl. B 0.282 Noise 0.023Switch C Failure 0.143

Lever Defect 0.131

Total 3 2 2 2

FTQ Weight = 1 Supplier Complaints Weight = 1 Online Containment Weight = 1 Scrap $ Weight = 1Final Assembly 0.237 Switch A Supplier A 0.368 Noise 0.239 Shaft 0.262Switch B Failure 0.178 Switch A Supplier B 0.173 Switch A Not Seated 0.190 Bracket A 0.109

Lever Defect 0.160 Housing Supplier 0.112 Component C Not Seated 0.149 Mount Pad 0.097Cosmetic Defect 0.091 Lever Supplier 0.089 Component A Not Seated 0.123 Motor 0.097

Missing Component A 0.077 Component A Supplier 0.081 Switch B Wrong Setting 0.079 Label 0.090Missing Component B 0.073 Component B Supplier 0.053 Switch B Not Seated 0.048 Pivot Mechanism A 0.082

Bracket Defect 0.067 Switch D Supplier 0.048 Lever Missing 0.045 Tie Down 0.079Lever Defect 0.060 Switch A Supplier C 0.038 Switch C Not Seated 0.045 Bracket B 0.067

Component A Defect 0.057 Component C Supplier 0.038 Component D Missing 0.043 Pivot Mechanism B 0.064Component B Not Seated 0.038 Bracket Assembly 0.052

Total 1 1 1 1

Boxes are all “Switch A” failures

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Customer Shut Down Weight = 3 Customer B Complaints Weight = 2 Warranty Incidents % Weight = 2 Warranty $ Weight = 2Switch D Defect 0.75 Cosmetic Defect 0.537 Component D Defect 0.525 Switch A Failure Appl. A 1.333

Lever Defect 0.75 Wrong/Missing Parts 0.503 Switch A Failure Appl. A 0.429 Switch B Failure 0.537Missing Parts 0.75 Switch A Failure 0.343 Noise 0.394 Switch A Failure Appl. B 0.067

Switch C Defect 0.75 Noise 0.183 Switch B Failure 0.371 Component C Defect 0.040Switch B Failure 0.160 Switch A Failure Appl. B 0.282 Noise 0.023Switch C Failure 0.143

Lever Defect 0.131

Total 3 2 2 2

FTQ Weight = 1 Supplier Complaints Weight = 1 Online Containment Weight = 1 Scrap $ Weight = 1Final Assembly 0.237 Switch A Supplier A 0.368 Noise 0.239 Shaft 0.262Switch B Failure 0.178 Switch A Supplier B 0.173 Switch A Not Seated 0.190 Bracket A 0.109

Lever Defect 0.160 Housing Supplier 0.112 Component C Not Seated 0.149 Mount Pad 0.097Cosmetic Defect 0.091 Lever Supplier 0.089 Component A Not Seated 0.123 Motor 0.097

Missing Component A 0.077 Component A Supplier 0.081 Switch B Wrong Setting 0.079 Label 0.090Missing Component B 0.073 Component B Supplier 0.053 Switch B Not Seated 0.048 Pivot Mechanism A 0.082

Bracket Defect 0.067 Switch D Supplier 0.048 Lever Missing 0.045 Tie Down 0.079Lever Defect 0.060 Switch A Supplier C 0.038 Switch C Not Seated 0.045 Bracket B 0.067

Component A Defect 0.057 Component C Supplier 0.038 Component D Missing 0.043 Pivot Mechanism B 0.064Component B Not Seated 0.038 Bracket Assembly 0.052

Total 1 1 1 1

Look for leverage by grouping common failures

Boxes are all “Wrong or Missing parts”

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Stacked Bar Pareto by common failure

0

0.5

1

1.5

2

2.5

3

3.5

Switch A

Fai

lure

Wro

ng/Mis

sing P

arts

Switch D

Def

ect

Switch B

Fai

lure

Lever

Def

ect

Switch C

Def

ect

Noise

No

rmal

ized

Sco

re

Scrap $Online InspectionSupplier ComplaintsFTQWarranty $Warranty Incidents %

Customer B ComplaintsCustomer Shut Down

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0

1

2

3

4

5

6

7

All Switch Failures Wrong/Missing Parts Lever Defect Noise

No

rmal

ized

Sco

re

Scrap $Online InspectionSupplier ComplaintsFTQWarranty $Warranty Incidents %Customer B ComplaintsCustomer Shut Down

Stacked Bar Pareto by common event

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Normalized Weighted Sum

%

0

0.5

1

1.5

2

2.5

3

3.5

4

EPS - RACK & PINIONMACHINING

EPS - RACK & PINIONASSEMBLY

EPS - I-SHAFT &JACKET MACHINING &

ASSEMBLY

EPS - COLUMN FINALASSEMBLY

EPS - ASSIST MECHASSLY & WORM

MACHINING

EPS - MOTORCONTROLLER &

SHAFT & HOUSING

No

rmal

ize

d S

core

Build Perf.

Inspectors

FTQ

Overtime

Scrap

Maint.

Tools

Processing

0

0.5

1

1.5

2

2.5

3

3.5

4

EPS - RACK & PINIONMACHINING

EPS - RACK & PINIONMACHINING

EPS - RACK & PINIONASSEMBLY

EPS - RACK & PINIONASSEMBLY

EPS - I-SHAFT &JACKET MACHINING &

ASSEMBLY

EPS - I-SHAFT &JACKET MACHINING &

ASSEMBLY

EPS - COLUMN FINALASSEMBLY

EPS - COLUMN FINALASSEMBLY

EPS - ASSIST MECHASSLY & WORM

MACHINING

EPS - ASSIST MECHASSLY & WORM

MACHINING

EPS - MOTORCONTROLLER &

SHAFT & HOUSING

EPS - MOTORCONTROLLER &

SHAFT & HOUSING

No

rmal

ize

d S

core

Build Perf.

Inspectors

FTQ

Overtime

Scrap

Maint.

Tools

Processing

Production losses

Can be used where diverse metrics exist

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Summary

Lean and Six Sigma both reduce variation

You must know a problem exists to solve it– Develop “Eyes for Flow” and “Eyes for Waste”

– Make regular observations

– Observed Normal vs. Abnormal activity

– Establish standardized work

– Make interruptions in flow visible ( small lot )

Learn to “see” thru database smog using– Select Focus

– Select Metrics

– Analyze for leverage

– Apply the appropriate problem solving tool

Normalized

Weighted

Sum

Page 35: Delphi - “Eyes for Waste” & “ Eyes for Flow”

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