Implementing POOGI at Great Lakes Copper to Drastically Increase Capacity a Road Map to Success

Transcription

1 Implementing POOGI at Great Lakes Copper to Drastically Increase Capacity a Road Map to Success Presented By: Date: June 15, 2011 Chris Mitchell, Great Lakes Copper Inc. Jack Warchalowski, CMS Montera Inc TOCICO. All rights reserved. 1

2 Agenda Presentation Objectives About Great Lakes Copper Location, Products and TOC Implementation History Operations Overview Business and Execution Challenges POOGI Implementation Approach Results Achieved POOGI Road Map Lessons Learned Next Steps 2

3 Presentation Objectives Provide an overview of POOGI implementation Discuss challenges associated with our project Demonstrate the change management approach we used in our implementation Show tools and techniques required for the successful outcomes Start a POOGI Implementation Road Map to follow 3

4 About Great Lakes Copper Location Located in the city of London Ontario, Canada along the 401Highway corridor for easy access to the great lakes region. In southwestern Ontario we are between Detroit and Toronto. Toronto London Detroit 4

5 About Great Lakes Copper Manufacturing Plant 3-shift operation few hundred employees seasoned work force many second generation one of the bigger employers 5

6 About Great Lakes Copper Products Manufactured We manufacture seamless copper tube for the plumbing, HVAC, Refrigeration and Natural Gas installation, Medical Gas industries. Commercial grade copper tube for various manufacturing industries in both coil form and straight lengths. As the leading manufacturer of polyethylene coated copper tubing for Natural Gas, Liquefied Petroleum Gas, Fuel Oil, Potable Water and various industrial applications A World Class producer of Line set Coils for the residential central air conditioning market. 6

7 About Great Lakes Copper TOC Implementation History Conducted business performance review in early 2009 Designed and implemented Drum-Buffer-Rope to manage the plant Deployed Consumption Driven Replenishment for all Make-to-Stock products Implemented Throughput Accounting based decision making process Installed TOC based Business Performance Intelligence dashboard late

8 About Great Lakes Copper Operations Overview Plant Layout & DBR Base Tube Stock Buffers Autos Buffer Auto Finishers EXTRUSION Extrusion Buffer South North Block Draw Winders Auto Finishers FINISHING Degrease Cast Extrusion Press DRAWING BENCHES Aetna Vaughn COIL MILL STRAIGHT MILL Sutton Straightener Small Furnace Big Furnace Nitro Debur Saws Pack, Bundle, Weigh Finished Goods Buffers Straightener Buffer Big Mac Straightener Plant System Buffer 2 main flow streams Coil Mill and Straight Mill DBR in place since late 2009 Control Points shown in Green (Press, Autos, Straighteners) 8

9 About Great Lakes Copper Business and Execution Challenges Very strong and increasing demand Initial DBR and replenishment implementation increased capacity and sales by 25% in the Coil Mill stream of the plant Matched organizational structure to support new DBR design Improved business profitability Straight Mill stream of the plant experienced delivery issues High process variability coming off the Extrusion Press Drawing capacity (Vaughn & Aetna) insufficient Decided to implement TOC based Process of On-Going Improvement (POOGI) to further improve business performance 9

10 POOGI Implementation - Approach Goldratt s Strategy & Tactic Tree 2.1 Reliability Competitive Edge VV for MTO Manufacturing 2.2 Rapid Response Competitive Edge Remarkable DDP Reliability Selling Managing Growth Remarkably Faster Lead Times Reliability RR Load Control Selling RR Selling Expending RR Client Base Choking the Release Managing Reliability Priorities Selling Dealing with CCRs Load Control POOGI Improving Flow Followed MTO S&T to implement POOGI Needed to combine the Make-to-Order and Make-to-Stock 10

11 POOGI Implementation Approach S&T Overview of Flow Issue Reporting 11 The cause for each non-trivial (bigger than 1/10 of production / system buffer) delay is reported and stored in the general bank of disruptions A cause for a disruption is the answer to the question What is the work order waiting for? All corresponding disruptions to a work order are pulled from the general bank and are placed on the Pareto diagram when: For MTO order: The work order becomes red (in the last 33% of the system buffer) For MTS order: The time since the release of a work order is longer than 2/3 of the system buffer, AND the colour of the work order is red (red zone of stock buffer) On weekly basis, a Pareto analysis on the relevant bank provides the data needed to pinpoint the major sources of disruptions that endanger on-time delivery Cross functional kaizen teams are taking actions to eliminate major sources of disruptions that endanger on-time delivery

12 POOGI Implementation Approach DBR Design modifications Base Tube Stock Buffers Autos Buffer Auto Finishers EXTRUSION Extrusion Buffer South North Block Draw Winders Auto Finishers FINISHING Degrease Cast Extrusion Press 1 3 Benches Buffer 2 DRAWING BENCHES Aetna Vaughn COIL MILL STRAIGHT MILL Sutton Straightener Big Mac Straightener Plant System Buffer Small Furnace Big Furnace Nitro Debur Saws Pack, Bundle, Weigh Finished Goods Buffers 1. Expanded and increased Base Tube Stock Buffers 2. Moved control point from Straighteners to Vaughn 3. Protected Vaughn with a short constraint buffer 12

13 POOGI Implementation Approach DBR Design mods and outcomes Base Tube Buffers managed in the CMS RoadRunner software perpetual inventory module greater visibility and availability Scheduling and production reporting improved and simplified fewer orders released / reduced WIP Excellent September and October shipments (best ever) Ready to initiate Flow Issue Reporting (POOGI) 13

14 POOGI Implementation Approach Initial data collection Implemented Continuous Improvement Software Module to institutionalize Work Centre Issue Collection Clearly identified Vaughn (drawing) as an initial POOGI target area 14

15 POOGI Implementation Approach Flow Issue Reporting Objectives Should Expect: 15 Prioritized flow issues among all work centers (where?) Easier to get (automated by software) Documented relevant flow issues across the plant (why?) More difficult (people involvement, shifts, etc.) To facilitate improvement opportunities discussion across shop floor Help to develop value proposition for suggested improvements Should Not Expect: Issues that no one knew about shop floor input A silver bullet

16 Vaughn Capacity Increase EXPLOIT Workshop 1. Describe the Process; Identify the Issues; Develop the Solutions 3. Create a Robust Action Plan Step 1 Step 2 Step 3 Issue Issue Issue Issue Issue Solution C Solution A Solution B Solution D Actions October 5, 2011 Respons ible Date Status Implement C Chris 10/1/10 0% Implement B Grace 11/15/10 0% Implement Solution D John 01/30/11 0% Study Solution A Ross 06/30/11 0% 2. Evaluate the Solutions 4. Follow up on implementation Big Return B Jewels D A Strategic Action December 1, 2011 Owner Date Status Implement C Chris 10/1/10 50% Small Return C Quick Hit Extra Effort Implement B Grace 11/15/10 100% Implement Solution D John 01/30/11 30% Study Solution A Ross 06/30/11 10% Easy to do Difficult to do 16

17 Vaughn Capacity Increase EXPLOIT Workshop Involved shop floor operators, supervisors, and plant management (4 x 4hr sessions) Not only directly involved (i.e. crane operators) Many exploitation opportunities identified by the team Focused on the work centre and other issues impacting its performance i.e. operating procedures, crane availability, etc. Created a payoff spreadsheet with clearly articulated tasks, responsibilities and associated costs (if any) took cause and effect into consideration Initiated task specific implementations in addition to the overall DBR scheduling and POOGI data collection activities 17

18 POOGI Implementation Approach Data collection challenges The biggest problem identified - No Issue Entered Some difficulties in collecting Flow Issues Not fully automated process Requires shop floor cooperation and input 18

19 POOGI Implementation - Approach TOC 6 Layers of Buy-In Agreement on the Problem What to Change Agreement on the Direction of the Solution Agreement that the Solution solves the Problem Agreement that we can resolve any new negative effects created by the solutions What to Change To Agreement that we can overcome any obstacles to successful implementation Agreement that we can overcome un-verbalized fear How to Cause the Change 19 Change Management framework used to create buy-in 6 Layers of Buy-In Provided overall change management framework Also used Prerequisites for Implementing Change 19

20 Prerequisites for Implementing Change (PICs) Executive Sponsorship Cascading Sponsorship People & Measures Change Agent Skills Managing Resistance Implementation Project Planning & Management Motivation Vision SUSTAINING CHANGE INITIATING CHANGE Change Management framework used to guide the implementation Executive Sponsorship and Cascading Sponsorship a key Supported by the Senior Management Steering Committee Provided focus (who to target and when) don t need everyone s support at the beginning 20

21 Key Activities for the Executive Sponsor implementation treat it as your 21 own Ensure that the organization has the resolve to sustain the change motivation management, consequence management Demonstrate passion and enthusiasm for the change implementation by continually reinforcing its relative priority frequent follow up Communicate the overall vision of the future state team meetings Demonstrate visible commitment to the change implementation understand and using tools (software) Ensure that both the Executive Sponsor and Sustaining Sponsors are on the same page one on one communication Eliminate barriers encountered by the sustaining sponsors and change agents change policies if required, drive consultants, employees and management Assume full ownership and responsibility for successful

22 POOGI Implementation Results Achieved Vaughn output increased by approx. 50% Vaughn w/c performance became a focus for the plant Drum Performance screen provided on-going feedback 22

23 POOGI Implementation Results Achieved MTS Straight Mill Finished Goods and their stock buffer positions Drum capacity increase allowed us to control, or even reverse, the overall level of stock-outs (black zone) While the overall Finished Goods position didn t improve dramatically the sales kept going up 23

24 POOGI Implementation Results Achieved Relationship between Throughput Delay (Throughput $ Days) and Order Lines Shipped We managed to reduce Order Delays while shipping more orders on time 24

25 POOGI Implementation Road Map Follow Goldratt s S&T And its sequence: 25 Choke, Manage Priorities, Deal with CCRs, Load Control, POOGI / Improve Flow POOGI step is the last one not the first one Need to have a stable DBR / Flow in place otherwise collected POOGI statistics is invalid Easier to identify problems with Work Centres More difficult to collect Flow Issues across the plant People involved, shift work / hand-offs, etc. Still need to convert Flow Issues to actionable steps Automated tool really helps with implementation - its speed, monitoring, and sustainability

26 POOGI Implementation Lessons Learned It is imperative to align implementation speed with the business performance and culture Need to change measures to support implementation objectives output (lbs.) vs. schedule Proper organizational structure and people changes are critical to the success Need to be pragmatic enough to take what you can get from the organization to keep the POOGI going 26

27 Next Steps Formalize continuous improvement process Use POOGI statistics to drive weekly continuous improvement meetings and monthly operations review Monitor and identify on-going improvement opportunities Establish permanent roles and responsibilities for the POOGI process 27

28 About Chris Mitchell & Jack Warchalowski Chris Mitchell is the Vice President, Operations for Great Lakes Copper Inc. Prior to Great Lakes Copper, Chris was the General Manager for two divisions of Magna International, and an Ontario based injection moulder. Chris has been instrumental in the implementation of DBR scheduling methodology and has utilized this with an effective POOGI program. Chris holds a Bachelor of Applied Science degree in Mechanical Engineering from the University of Waterloo in Waterloo, Ontario. Jack Warchalowski is the President & CEO of CMS Montera Inc. (CMS). CMS provides TOC based management solutions and software to increase operational performance and sales. Prior to CMS, Jack was the Head of Operations for high tech manufacturer, E&Y management consultant, and a project engineer with Babcock & Wilcox. Jack holds an MBA degree from the Wilfrid Laurier University and a BASc. in Mechanical Engineering from the University of Waterloo in Waterloo, Ontario. He is also certified by the TOCICO in all fields of TOC. In addition, Jack is a Professional Engineer registered 28 in Ontario and a Certified Management Consultant.