North American Plant-to-Enterprise Conference September 21-23, Orlando, FL

Transcription

1 Applying Lean, Six Sigma, MES, and Sense & Respond to Improve Yields and Reduce the COGS John Rassieur Associate Partner IBM Supply Chain Planning & Operations North American Plant-to-Enterprise Conference September 21-23, Orlando, FL

2 Strategic Initiatives of MESA International The following Strategic Initiatives of MESA International are associated with this presentation: Lean Manufacturing Quality & Regulatory Compliance Real-Time Enterprise

3 Our Client is a Manufacturer of Specialty Wheels for the Automotive Industry Tier 1 Wheel Manufacturer 20 Years of Manufacturing Operations in North America Serve Several Major OEMs in the Automotive Industry Produce Wheels for a Variety of Car Product Lines/Models Adhere to Strict Shipping Requirements Assure Product Safety and Quality Compliance with Federal Regulations

4 The Manufacturing Facility Operates 24x7, Producing About 5,000 Wheels a Day and 30 Different Wheel Types Per Month Corporate Operations Production Requirements Produce 30 (SKU s) Incoming Wheel Inspection Types Each Month Receiving Prep Plant Operations Inventory Convert 3 Months of Inventory On- Hand Pack Production Status Produce About 5,000 Wheels Shipping Per Day 2-3 Days of Receiving Inventory Approximately 1 Quality ControlDay of WIP Inventory at Work Stations Maintenance and Other Supporting Departments Daily Shipments

5 Competitive Pressures Increase in the Face of Globalization; Challenges Are Caused by Internal and External Sources On-Time Delivery Plant Changes Cost Pressures Global Competitive Pressures Company Culture

6 Product or Service Output Critical Customer Requirement Defects: Service unacceptable to customer A 4-Step Approach to Improve Yields and Reduce COGS will be Integral in Addressing & Overcoming Client Challenges 4 Step Approach: Lean Six Sigma Increase efficiency Simplify work flows Identify value & non-value added activities Eliminate waste Increase effectiveness Reduce variation Eliminate defects 1. Lean Manufacturing 2. MES 3. Six Sigma As-Is Flow To-Be Flow 4. Sense & Respond Sense & Respond B A Product or Service Outputs MES Mechanism for standardized work Real-time data collection Poke Yoke

7 Step #1 - Lean Manufacturing Used to Identify Waste In and/or Cause By the Manufacturing Process Lean is accomplished by identifying and eliminating waste (non-value added activities).

8 Lean Studies Used as Problem-Solving Techniques; VSM Findings Were Flushed Out Through Financial Analysis Percentage of Units Per Monthly Cost Annual Cost of Area Re-work Cost Month of Quality Quality Finesse 3% $ $10, $121, Touch-up 4% $ $18, $220, Repeat Op 3 4% $ $24, $291, Repeat Op 2 3% $ $32, $389, Totals 14% 31,500 $1,023, Scrap Percentage of Scrap Cost Units Per Monthly Cost Month of Quality Approximately 1 month of Production Per Year is Lost Due to Scrap and Re-work Annual Cost of Cost of Lost Monthly Cost Annual Cost of Quality Opportunity of Quality Quality Monthly Cost of Quality for Sales Annual Cost of Quality for Sales Op 1 3% $8.36 9,000 $75, $902, $45.16 $406, $4,876, , ,544, Op 2 3% $ ,500 $52, $624, $48.36 $217, $2,611, , ,945, Op 3 3% $ ,500 $55, $669, $49.19 $221, $2,656, , ,990, Op 4 1% $ ,500 $68, $819, $51.98 $233, $2,806, , ,140, % 22,500 $3,015, $12,951, ,621, VSM Findings: *14% Rework *10% Scrapped & Reprocessed *1% Scrap at Each Major Dept. *1 Day WIP *3 Days Receiving Inventory *3+ Months of Finished Goods *First Time Thruput < 60%

9 Step #2 MES Manages the Shop-Floor Through Improved Data Collection; Provides Improved UI over ERP System A MES is a Mechanism for Continuous Process Improvement through its capability to capture it s planned and actual production data (Cause and Effect). What to Build Mechanism How to Build What was Built As-Planned For CPI As-Built How was it Built

10 The Architecture Demonstrates the Ability of MES to Provide the Right Information, to the Right Resource, at the Right time for Action, Enabling CPI Enterprise Factory Process/Line Recipe/Machine As-Built Product & Process Demand Product & Process Data Definitions ERP EDM / PDM Production Status Production Orders Product & Process Data Definitions CPI Execution Systems Consumption Results & Status Set Points Shop Packet Picklist Verification & Traceability Work Status Production, Quality, & Maintenance Controls People Inventory Manufacturing Process Alarms History Data Readings & Parameters Equipment As-Planned

11 Step #3 - Knowledge Gained by 6 Sigma Methodology to Reduce Variation May be Applied to MES to Enhance CPI Capabilities A Pareto of Top Manufacturing Defects was Identified. Defects Highlighted in RED are Caused During the Casting Process, Accounting for Half the Total Defects σ Methodology Define Opportunity What is Important? Measure Performance How are we Doing? Analyze Opportunity What is Wrong? Methodology Applied By Exploring Top Manufacturing Defects Improve Performance What Needs to be Done? Control Performance How do we Guarantee & Sustain Performance? Shrink Spoke Pinholes Hand Rim Cast Pit Hand Cast Other

12 Step #4 An Event Driven Response System Manages Production to Meet Actual Customer Demand Synchronized Manufacturing Demand Volatility Results In: Based on Dynamic Demand Variability in Manufacturing Lead-Times Uncertainty in Order Commitment Quantity and Delivery Dates Dependent on Production Resource Availability Need to Address Product Variation in Planning/Scheduling

13 The Sense & Respond System Optimizes Planning & Scheduling and Reaction to Dynamic Customer Demand React and Plan on Real-Time Basis to Dynamic Business Conditions, Optimizing the Orchestration of Business Activities Consumer Retailer Wholesaler Distribution Manufacturer Supplier

14 The 4-Step Approach Achieves Sustained CPI Through Lean, MES, Six Sigma, and Sense & Respond, Increasing Production Yields & Reducing the COGS 4-Step Approach Waste Elimination Mechanism For CPI Overall Expected Results 2 Months Additional Production Yields Per Year No Additional Facility Resources Required All Elements Working Together as a Well Oiled Entity Variability Reduction Optimization of Customer Order Fulfillment Process

15 C rit ical C u stom er R equ irem ent B A Defe cts: Service u nacceptab le to custo mer P r odu ct o r S er vice O utp ut Who to Contact? David Spade, Partner and Service Area Leader Industrial Supply Chain Operations and Planning Mobile Phone: (805) david.spade@us.ibm.com John Rassieur, GIO/MES Horizontal Leader Mobile Phone: (630) jerassie@us.ibm.com Jon Tschaikovsky, GIO/MES Managing Consultant Mobile Phone: (708) jtschai@us.ibm.com Thank you!