Resource – Process - Efficiency
How to engage & inspire the client
To be really effective and ultimately successful you need to be
perceived by the client as having
• commitment,
• knowledge, experience,
• be able to communicate
• be understood
• have empathy
• understand synergy
• credibility
• passion and exuding that passion - transfering the passion
in part or in whole to the audience, (the client(s), to inspire
them into action.
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Process Efficiency
So how do you do this?
DEMONSTRATE AND SUPPORT THE POTENTIAL TO PROVIDE
COST SAVINGS!!!!!!
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What needs to be improved
• Identifying what needs to be improved is always helpful ie
some companies have the mission statement, some
companies lead times ;some service levels.
• Companies tend to relate back to the financial plan with
some non financial targets such as complaints, customer
ppm, hours without a lost time accident etc.
• These targets are then communicated through to all and
action the team through policy deployment. This allows
activities to be tested on the question- does project X
support any of the critical objectives?.
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Process Efficiency
Need to know what, where and how resources are used in the process
and controls in place
–
–
–
–
–
–
–
–
Do they have recognised Management procedures eg ISO
Is the process(es) a batch process or continuous or a mixture
Do they recognize and apply best practice man machines
methods and materials?
Are there perceived bottlenecks, pinch points, rate determining
steps in the process
Raw materials - records of amounts purchased/used, rejects
&rework (plus analysis), complaints. Costs of major raw
materials. QA records
Energy & water- Bills, any monitoring and targeting, any
analysis – major consumers of utilities
Waste- how/where it arises - the amounts- is it avoidable and if
unavoidable is it being managed?
Transport- Systematic approach, logs of fuel use, training
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Process Efficiency
Input 100%
Process(es)
Output 70%
Difference 30% HOW, WHY ,WHERE ,WHO,WHAT
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Where to start!
• “If you can’t measure it, you can’t
control it.
• If you can’t control it, you can’t improve
it.”
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Effective use of Short Interval Control (SIC) can be
summarized in this way
• Processes are kept in control when - and only
when - every member of the organisation accepts
responsibility for identifying variances, then
takes action to eliminate causes of problems.
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Some Basic and not so Basic Problem Solving Tools
•
Brainstorming
•
5s – Sort-Set in order- Shine- Standardise- Sustain
•
Histograms & Charts
•
Process-Mapping
•
Fishbone (Ishikawa) Diagrams
•
Mapping – Visual - waste
•
Causal-Loop Diagram
•
Pareto Diagrams
•
Attribute Charts
•
•
•
•
•
•
Route Cause Analysis
Statistical Process Control – 6 sigma – Capability
SMED
Design of Experiments
Taguchi
Multi variable SPC
•
Some tools are for driving improvements whilst the others are to stabilise the new state and
managing abnormalities.
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The Power of “Why
The most powerful question a consultant can ask is:
WHY?
… ask enough times and you will uncover the root cause.
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Why Is The US Railroad Gauge 4’ 8.5”?
•
•
•
•
•
•
Why? Because that's the way they built them in England.
Why did the English build them like that? Because the first rail lines were built by the
same people who built the pre-railroad tramways.
Why did they use that gauge then? Because the people who built the tramways used
the same jigs and tools that they used for building wagons, which used that wheel
spacing.
Why did the wagons have that particular odd wheel spacing? Well, if they tried to use
any other spacing the wagon wheels would break on some of the old, long distance
roads in England, because that's the spacing of the wheel ruts.
So who built those old rutted roads? The first long distance roads in Europe (and
England) were built by Imperial Rome for their legions - Roman war chariots first made
the initial ruts, which everyone else had to match for fear of destroying their wagon
wheels and wagons.
Why were the chariots designed as they were? Imperial Roman war chariots were
made just wide enough to accommodate the back ends of two war horses
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Why Is The US Railroad Gauge 4’ 8.5”?
Because that is the width of the backend of two horses!
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Definition: KPI
• A Key Performance Indicator (KPI) is a
metric which is used to measure the
performance of a critical or high
leverage activity or process
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Definition: KPI
KPI’s are like the dashboard of a car.
They provide the essential information
required to control the vehicle safely and
efficiently. They do not provide
information on all of the aspects of the
vehicle which could be measured
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Make sure you measure the right thing
• The FAA defines ‘on time departure’ as when the door shuts
• …Not much fun if you’re a passenger delayed on the
runway for another hour
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Use both ‘Leading’ and ‘Lagging’ indicators
Example
When losing weight, it is far more effective
to count calories than to just focus on
weight
Leading indicators measure activity (input)
while the lagging indicators measure
results (output)
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Map the KPI relationships using a tree
Lagging
$ / Unit
Leading
Units
Efficiency
Yield
Cost $
Materials
Labor
• KPI tree cascades each of the desired outcomes to the
lowest level at which a KPI can be managed
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Example of a KPI tree
Variable
Cost
Throughput
Efficiency
Process Control
Availability
Changeovers
Stoppages
Quality
Give-Away /
Breakages
Energy
Efficiency
Fixed
Cost
Labor
Productivity
Overtime /
Contractors
Staffing /
Shifts
Materials
Usage
Org.Effectiveness
Infrastructure
Warehouse
Inventory
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Set challenging goals
•Until Roger Bannister broke the fourminute mile, it was commonly believed that
it could not be done
•After he broke the record, suddenly others
began to be able to accomplish this as well
Why is that?
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Targets, budgets, plans, etc.
• *B.D.P. = Best Demonstrated Practice
Plan
KPI
Actual
B.D.P.*
Target
Budget
Base
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Define ‘SMART’ Targets
S
Specific
M
Measurable
A
Achievable
R
Realistic
T
Time Related
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KPI guidelines
•
•
•
•
Should be limited to manageable number (12-25)
Should be used in balanced combinations or as ratios
Should be measured against a base, plan and target
Should be capable of being influenced by the person
monitoring it
• Should be used as a tool to improve performance
and not to punish poor performance
• Should be easy to understand
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The D.A.D.A. Cycle
Data
Action
Facts
Analyse
Decision
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Stages In The Process
• Identify problems
• Record them
• Classify or group them
• Agree ranking criteria
• Rank and prioritise problems
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Basic Problem Solving Tools
• Brainstorming
• Histograms & Charts
• Process-Mapping
• Fishbone (Ishikawa) Diagrams
• Mind-Mapping
• Causal-Loop Diagram
• Pareto Diagrams
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Example: Pareto (80/20 Rule)
98%
95%
46
100%
45
90%
83%
40
80%
71%
35
Frequency
100%
90%
70%
30
60%
46%
25
25
50%
20
40%
15
30%
12
10
7
5
5
Cummulative %
50
20%
3
2
0
10%
0%
1
2
3
4
5
6
7
Category
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Example: Fishbone (Ishikawa) Diagram
Cause
Effect
Men
Machines
EFFECT
4 P’s
Policies
Plant
People
Procedures
Methods
Materials
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Introduction of the root cause analysis (RCA)
• Definition
– Root Cause Analysis (RCA) is a formal approach to solving a given
problem
– The use of RCA provides a structured method for developing the root
cause and enables identification of the best recommended solutions to
the problem
• When is a RCA needed?
– Any time there is an incident, or when you have identified a repetitive
problem that needs to be solved
• Who can use the RCA method?
– Everyone
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Root cause analysis in 5 steps
Defi
ne
the
pro
ble
Step n°1:m
 agreement
and scope problem.
 Collect data to
establish a hypothesis,
idea or theory of what
happened once the
problem is defined.
Elements/Tools
Elements/Tools

Problem Statements



Det
erm
ine
data
nee
Step n°2: ds
Timelines

Data collection plan



Prove the hypothesis
by taking the large list
of potential causes and
identifying the most
likely root cause(s)

Ishikawa


Flowcharts/
Process Maps
Ishikawa Diagrams

Imp
lem
ent
solu
tion
Step n°5:s
Acti
Step n°4:ons
Generate a list of
 Ensure
improvements to
recommendations are
address root causes
implemented through
of the identified issues assigning responsibilities to
stakeholders and following
up in RCA Meetings

Elements/Tools

Elements/Tools
Assign Actions
Team Authorization

Define responsible
entity and timeline

Pareto Charts
Flowchart/
Process Maps

Prioritize (risk rank)
task
Risk Analysis FMEA

Submit to RCA Team

Pareto Charts

Eliminate and rank
causes

Affinity diagram

Corr
ecti
ves
Elements/Tools
Collecting Data
Boundaries
Improvement Targets
Anal
yse
the
pro
ble
Step n°3: m



Follow up
Resource Evaluation
Communicate Results
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Ishikawa example
METHODS
Causes
MACHINERY
Use wrong gears
Drive
too
fast
Poor hearing
Fuel mix too
rich
No record
tire pressure
Under-inflated tires
Mech. doesn’t
Radio too loud have specs
Always
late
Impatience
Poor
maintenance
$
Poor design
Can’t hear engine Carburetor
adjustment
Poor training
Difficult air valve
stems
Wrong gas
type
MANPOWER
Poor driving
habits
$
Don’t know
recommended
petrol type
Causes

Represented by the RIBS of the skeleton

Use the “4M’s” / “4P’s” or others to categorize the causes
 Add
the causes to the rib
 Add
further riblets to show relationships between causes
POOR
GAS
MILEAGE
No oil change
No owner’s
“When in Rome”manual
No awareness
Effects
Improper
lubrication
Don’t know right oil
Wrong oil
No owner’s manual
MATERIALS
Effects
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CAUSE & EFFECT DIAGRAM reminders
•
•
•
•
•
“4 M’s”
Manpower
Machinery
Materials
Methods
“4 P’s”
Personnel
Plant
Policies
Procedures
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Affinity diagram
Étape 1
Brainstormed Post-Its
Stick with the rule of 3 - 6 words per
Post-It, with a verb.
Define the categories
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Root Cause Analysis Roadmap
Define Problem
Suppliers
Inputs
Process
Outputs
Customers
Problem Statement:
Goal:
Business Case:
Scope:
Targeted improvement
Timeline::
Determine Data Needs
Analyze Data
80,000
70,000
60,000
50,000
40,000
Total
30,000
20,000
10,000
0
0020 Arret Scie (Detection
Genoux)
0001 Bp Arret Urgence 4pc12-2
0099 Trappe A Faute
0009 Convoyeur De
Compression Pas Baissee
0004 Blocage Entrée Courroie
Action log
Corrective Action
Implementation
1 2 3
4
5
6
7
8
9 10
A
B
C
D
G
E
F
H
G
I
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J
Supported by coaching the people in using specific tools...
Helping the people utilise the new measurements properly
“these tools can eventually be automated to help people think and make decisions faster”
Source fishbone
Root-cause fishbone
Frequency histogram
Pareto histogram
3
Decision scripts
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Short Interval Control (SIC) Prevents Large Problems from
Surprising the Organization
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What is a Short Interval Control (SIC)?
•
SIC is part of a suite of tools to improve the efficiency of production
focusing on a part of a process that is critical to the overall
optimisation of the process
•
A tool tracking a variable at the optimum interval. This variable will
be whatever is most meaningful in optimising output and the
reporting will be based on a variance against a standard.
•
Typically developed and used by the people at the ‘front line’ of the
process and recorded by hand. High performance results are
achieved where the operator has the desire & passion to achieve
the best results and quickest resolution of issues – thus behaviours
are very important.
•
Provides a good base for communication tool between operators
on shift change
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Designing the Short Interval Control (SIC) –
What are the principles?
• Find or develop experts who know about process control
charts.
• ‘Get them to do it!’ - Coach the operators through drawing up
the control chart, identifying the appropriate interval for
measuring the variable, and establishing the desired
parameters for operation (across shifts!).
• Don’t design the ‘perfect’ control chart - go with one that
does the job; upgrade at a later date
• Make a commitment to reviewing the performance regularly
and consistently
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Coaching the Installation of a SIC
Working with Operators, define key
variables to monitor
Agree
performance
standard
Coach operators in designing SIC
Get operators to agree on targets /
parameters; communicate across
shifts
Set aside several hours each day to
sit with operators to install SIC
Challenge
Listen / Follow up
Support / Trust
Question operating norms, changes to
rates, challenge non-compliance,
reward good operation, use problemsolving tools to help remedy poor
operation - LISTEN
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Short Interval Control Tool
• Short Interval Control (SIC) mechanism is a
simple tool
• Helps staying on track towards goal
• SIC is utilizing the decision loop so frequently that
any deviation from progress towards goal is
DATA
corrected early enough
(Check)
ANALYSIS
(Act)
ACTION
(Do)
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DECISION
(Plan)
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Description of Short Interval Control
Short interval control (SIC)
3-4-5
Line:
Follow:
What is SIC?
SIC is used to measure shortterm changes in the process.
It serves as a tool for
communicating processperformance during team
changes.
It is a tool that ensures corrective
actions are taken before the
process goes out of control.
Palletiser
Place:
(Follow every hour)
Follows the number of stops in minutes on the palletiser after accumulation or bad pallets
25 min
20 min
15 min
10 min
5 min
0
Number of the
pallatiser
Time
6 AM
7AM
8AM
9AM 10AM 11AM 12AM 1PM
2PM
3PM
4PM
5PM
6PM
7PM
8PM
9PM 10PM 11PM 12PM 1AM
2AM
3AM
4AM
5AM
•
If the indicator is in the red zone, the process is out of control. Take corrective
action. Call the supervisor.
•
If the indicator is in the yellow zone, take preventive measures to avoid the
process going out of control.
•
Check the adjustments or call the supervisor, electrician, mechanic.
•
If the indicator is in the green zone, the process is under control
Congratulations!
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Example of Graphical SIC
Short Interval Control (Example)
Line:
Area:
5
Follow:
Shift
10 min
Shift
Corrective
Action
Shift
Corrective
Action
8 min
Corrective Action tendency increasing
6 min
Preventive
Action
Preventive
Action
4 min
2 min
0
Operator Initials
Time
6 AM 7AM
8AM
9AM 10AM 11AM 12AM 1PM
2PM
3PM
4PM
5PM
6PM
7PM
8PM
9PM 10PM 11PM 12PM 1AM
2AM
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3AM
4AM
5AM
What’s SMED?
Single Minute Exchange of Dies
CYCLE TIME COMPRESSION
AND
IMPROVEMENT IN QUALITY
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PIT CREW
•
•
•
Tyres ready, tools in place,
fast-flow fuel tank is full
Co-ordinated crew activity four new tyres - fill fuel tank wipe windshield - water for
driver
Car out of pit - get ready for
next pit stop
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IMPROVEMENTS IN PIT STOP TIMES
TIME IN SECONDS
250
200
150
100
50
0
1950
1960
1970
1980
1990
YEAR
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Definition of changeover time
The time, the last good product was produced on the old setup, to the time, the first acceptable product is made on the
new set-up (after adjustments).”
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CAUTION - What is the changeover time?
• to external
changeover
last good
piece of old
product
internal
activity
changeover
rework
first pass
yield
start of first good
piece of new product
re set-up
during
process
of part
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Parallel Operations
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How can adjustment time be eliminated?
Externals
Externals
Internals
Internals
Run
Run
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Smooth & Simplify
• Eliminate adjustments - standardize location
points, settings of adjustment, utilize visible
centerlines and numerical scales
• Use functional clamps and one-turn, one-motion,
interlocking methods
• Determine the best way to organize, maintain, and
store tools and materials.
• Determine the right amount of tools and materials.
– And...
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Smooth & Simplify
•
•
•
•
•
“Slick” loading and unloading of dies and fixtures
Determine and record key dimensions
Utilize a least common multiple system
De-skill most steps
Utilization of appropriate technology - standard
base plates, chamfered pins, t bolts, v fixtures,
limit switches to set heights and lengths, upgraded
clamping methods
• Mechanize - utilize forklifts, overhead cranes,
bolsters, remote control tightening devices,
electric drives
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BENEFITS of SMED
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Quicker set-ups - reduced downtime
Increased uptime - increased production and throughput
Higher equipment availability
Improved competitiveness - job security
Improved safety - reduced risk of injury & physical strain
Improved customer service and delivery
Reduced costs and improved quality
Reduced lot sizes
Reduced scrap and repair
Reduced work in process inventory
(WIP)
Reduced finished goods inventory /
need for storage space
Reduced obsolescence
Improved housekeeping
Simplified production scheduling
Increased manufacturing flexibility
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SMED do’s and don’ts
DO
• Start on bottlenecks
• Reduce batch sizes in line with set-up reductions
• Organize the workplace
• Make checklists
• Focus on internal set-ups first
• Eliminate / reduce adjustments
• Develop one-touch clamping
• Utilize fool-proofing
• Standardize methods
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SMED do’s and don’ts
DON’T
• Tackle all machines / products at once
• Underestimate time required
• Expect instant results
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What is a One Point Lesson?
• It is a short Standard Operating Procedure (SOP) with visual
elements written in one page
• It is a tool to communicate knowledge and skill about the
equipment amongst members of the team.
• A tool to raise the knowledge and skills of the team in a very
short period of time.
• If you find a better way of doing something you can ensure
that everyone knows about it by using a One Point Lesson
(OPL).
• If you have found a way of solving a problem and want to
ensure that next time the problem is encountered everyone
knows, then tell the team using an OPL (but also update the
correlated SOP
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What is a One Point Lesson?
• A One Point Lesson is one of the easiest and cheapest
methods of reducing and avoiding downtime.
• It is a complement for the SOP in order to facilitate the
communication and the training.
• One Point Lesson NEVER REPLACE THE SOP
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How is a One Point Lesson generated?
• One member of the team prepares a sheet, which describes
the problem and solution in simple language. Illustrate it with
pictures if possible.
• The team discusses the OPL, formally or informally, and
incorporate any ideas.
• The OPL is approved by line management to ensure it is
appropriate and safe.
• The OPL is published and read by all members of all shift
teams. Individuals sign to acknowledge that they have read
the OPL.
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The One Point Lesson Form (Example
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How to achieve Behavioral Ownership
• Create a sense of urgency so that people start telling each
other, “Let’s go, we need to change things!”
• Pull together a guiding team powerful enough to guide a
big change
• Create clear, simple, uplifting visions and sets of
strategies
• Communicate the vision through simple, heart felt
messages sent through multiple channels so that people
begin to buy into the change
• Empower the people by removing obstacles to the vision
• Create short-term wins that provide momentum
• Maintain momentum so that wave after wave of change is
possible
• Make change stick by nurturing a new culture
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