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Problem Solving Process (A3) – Clear Understanding of Our Systems – Visual Management – Drive and Dedication – Urgency and Accountability

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Problem Solving Process (A3) – Clear Understanding of Our Systems – Visual Management – Drive and Dedication – Urgency and Accountability “Process Stabilization Through A3 and the Daily Management Process” Angelo Esposito Manager of Quality & Operational Excellence ODG (Ontario Drive and Gear) Welcome Who is ODG? • Started in 1962 • Two divisions – Gear and Vehicle • Brand names – ODG Gear and ARGO • Sales 2013 of nearly $60M • Total employees 230 1967 The first Argo amphibious all terrain vehicle was developed Gears • High mix, low volume, high quality gear manufacturer – Over 1000 skews – Target 1 to 50,000 pieces – Manufacture up to 500 mm, AGMA 12 • Industries supplied – Industrial, off-highway, agricultural, construction, automotive, military, aerospace, natural resources and ATV Engineering Design Gear Technology Transmission Assembly Test GROWTH ! CHALLENGE ! 11 On Time Delivery 100% 95% STABLE 90% On Time + Partials + Late Sales Orders 85% 80% GOOD 75% 70% CHALLENGE ! 65% 60% Quality - % Cost of Sales 1.8% 1.6% 1.4% 50% Improvement 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2012 2012 2012 2013 2013 2013 2013 2014 Cost of Quality Defect as % of Sales What was needed… Stabilize Operations Process Using A3 and The Daily Management Process Focus on Foundational Elements… Consistency in: • Machines • Manpower • Materials • Methods MASTER PLAN Planning & Deployment… Where are we? 1.CURRENT STATE Where do we Requires Creation of want to be? 2.VISION / FUTURE STATE Requires OBJECTIVES Determines METRICS Necessitates STRATEGY When ? Who ? How ? What ? 3. PLAN Facilitates 4. MONITORING, Requires How will we FREQUENT REVIEW, Is it working? get there? FEEDBACK 16 Where are we ? Where do we want to be..? Future State Condition Current State Condition Two main areas of focus.. • On Time Delivery 75% > 100% • Cost of Quality 1.6% > 0.8% Team agreed on the strategies, timing and duration of activities, champions of the activities, milestones and review timing, and the target measurables. A roadmap toward the vision. …Protection Managing Scoreboard Safety Learning Growth QA Quality Cost Environment Delivery & Morale & Technology So… WHERE DO WE BEGIN? Operating System Daily Management Process Measurables Standardized 5S/ Work Visual Management Lean Problem Overview Kanban Solving Maintenance Error Quick Excellence Changeover Proofing TPM What is Lean? Measurables Standardized 5S/ Work Visual Management Lean Problem Overview Kanban Solving Maintenance Quick Error Excellence Changeover Proofing TPM Training developed that defines principles and more importantly provides a clear understanding of Lean and the standardized tools necessary to execute Lean principles. – Formal Problem Solving process (A3) – Clear understanding of our Systems – Visual Management – Drive and dedication – Urgency and Accountability Specify Understand and specify what adds value Value from the perspective of the customer Integrate the Identify steps in the whole value Value Stream stream to highlight waste Make the Create a continuous flow of Product Flow activities along the value stream Only carry out activities in response At the Pull of to pull from the customer the Customer Strive for perfection by continually creating In Pursuit of value and removing successive layers of waste Perfection Paradigms… Old Paradigm: New Paradigm: You Can Have 2 of 3 Must Provide all 3 C C Q D Q D “Cost” The House… Fastest Processes CONTINUOUS IMPROVEMENT HUMAN CENTERED JUST WORK BUILT “Speed” IN IN “Quality” TIME QUALITY PROBLEM SOLVING STANDARDIZATION • Operational Excellence • Maintenance Excellence • 5S & Workplace Organization • Employee Training & Involvement “Building Our Future” The House… ContinuousFoundational Improvement Elements to our system • PDCA Human Centered Work • Kaizen and Quickand Lean Manufacturing emphasizing• Lean Culture a Change Over Fastest Processes • Communication • Elimination of Waste • Support for the Value-Adder sequencedCONTINUOUS application IMPROVEMENT of tools. • Measurables KPIs Lowest Cost HUMAN • Total Cost Without these foundationsCENTERED the house• Price – Cost = Profitis Just In Time WORK Built In Quality • Takt Time JUST unstable.BUILT • Quality Standards • Level Production IN IN • Error Proofing • Pull System, Kanban TIME QUALITY • Andon • Flow • MSAProblem Solving • Multi-skilled Operators • A3 Problem Solving PROBLEM SOLVING • Six Sigma Standardization • Reoccurrence Prevention • ETQ STANDARDIZATION Training • Standardized Work • Lean Camp, Basic • 5S & Workplace • Operational Excellence Training Organization • Specific Training • Visual Controls & Visual • Maintenance Excellence Management – 50 ft 15 secs. • 5S & Workplace Organization • Employee Training & Involvement 5S/Visual Management… 5S / Measurables Standardized Work Visual Management Lean Overview Problem Kanban Solving Maintenance Quick Lean Excellence Changeover Culture TPM 5S Activities 5S Activities Total Productive Maintenance and Maintenance Excellence… Measurables Standardized 5S / Work Visual Factory Lean Mfg. Problem Overview Kanban Solving Lean Maintenance Quick Culture Excellence Changeover TPM The House… Continuous Improvement Human Centered Work • PDCA • Lean Culture • Kaizen and Quick Fastest Processes • Communication Change Over • Support for the Value-Adder CONTINUOUS IMPROVEMENT • Elimination of Waste Lowest Cost • Measurables KPIs HUMAN • Total Cost Just In Time CENTERED • Price – Cost = Profit • Takt Time WORK • Level Production JUST BUILT Built In Quality • Pull System, Kanban IN IN • Quality Standards • Flow TIME QUALITY • Error Proofing • Multi-skilled Operators • Andon PROBLEM SOLVING • MSA Standardization Problem Solving • ETQ STANDARDIZATION • A3 Problem Solving • Standardized Work • Six Sigma • 5S & Workplace • Operational Excellence • Reoccurrence Prevention Organization • Maintenance Excellence Training • Visual Controls & Visual • 5S & Workplace Organization Management – 50 ft 15 secs. • Lean Camp, Basic • Employee Training & Involvement Training • Specific Training The House… Continuous Improvement Human Centered Work • PDCA • Lean Culture • Kaizen and Quick Fastest Processes • Communication Change Over • Support for the Value-Adder CONTINUOUS IMPROVEMENT • Elimination of WasteMaintenance Excellence - anotherLowest Cost • Measurables KPIs HUMAN • Total Cost Just In Timefoundational elementCENTERED to our System• Price – Cost = Profitand • Takt Time WORK JUST BUILT • Level ProductionLean Manufacturing emphasizingBuilt In Qualitya Zero • Pull System, Kanban IN IN • Quality Standards • Flow Tolerance,TIME Zero MileageQUALITY condition.• Error Proofing • Multi-skilled Operators • Andon PROBLEM SOLVING • MSA Standardization Problem Solving • ETQ STANDARDIZATION • A3 Problem Solving • Standardized Work • Six Sigma • Reoccurrence Prevention • 5S & Workplace • Operational Excellence Organization • Visual Controls & Visual • Maintenance Excellence Training Management – 50 ft 15 secs. • 5S & Workplace Organization • Lean Camp, Basic • Employee Training & Involvement Training • Specific Training TPM Objectives… The concept of “Zero Mileage Equipment” How Do We Measure Maintenance & TPM? • OEE (Overall Equipment Effectiveness) • % Planned vs. Unplanned maintenance • Repeat failures • MTBF (Mean Time Between Failure) • MTTR (Mean Time To Repair) Visual OEE STANDARDIZATION Measurables Standardized 5S/ Work Visual Management Lean Problem Manufacturing Kanban Solving Overview Maintenance Lean Excellence Quick Culture TPM Changeover The House… Continuous Improvement Human Centered Work • PDCA • Lean Culture • Kaizen and Quick Fastest Processes • Communication Change Over • Support for the Value-Adder CONTINUOUS IMPROVEMENT • Elimination of Waste Lowest Cost • Measurables KPIs HUMAN • Total Cost Just In Time CENTERED • Price – Cost = Profit • Takt Time WORK • Level Production JUST BUILT Built In Quality • Pull System, Kanban IN IN • Quality Standards • Flow TIME QUALITY • Error Proofing • Multi-skilled Operators • Andon PROBLEM SOLVING • MSA Standardization Problem Solving • ETQ STANDARDIZATION • A3 Problem Solving • Standardized Work • Six Sigma • 5S & Workplace • Operational Excellence • Reoccurrence Prevention Organization • Maintenance Excellence Training • Visual Controls & Visual • 5S & Workplace Organization Management – 50 ft 15 secs. • Lean Camp, Basic • Employee Training & Involvement Training • Specific Training ContinuousThe House… Improvement Human Centered Work • PDCA Standardization - another foundational• Lean Culture • Kaizen and Quick Fastest Processes • Communication Change Over • Support for the Value-Adder elementCONTINUOUS of our IMPROVEMENTLean Manufacturing • Elimination of Waste Lowest Cost • Measurables KPIs System emphasizingHUMAN a consistent• Total Cost Just In Time CENTERED • Price – Cost = Profit • Takt Time WORK • Level Productionresult, makingJUST the abnormalBUILT standBuilt In Quality out • Pull System, Kanban IN IN • Quality Standards • Flow TIMEfrom the normalQUALITY • Error Proofing • Multi-skilled Operators • Andon PROBLEM SOLVING • MSA Standardization Problem Solving • ETQ STANDARDIZATION • A3 Problem Solving • Standardized Work • Six Sigma • 5S & Workplace • Reoccurrence Prevention Organization • Operational Excellence • Visual Controls & Visual • Maintenance Excellence Training Management – 50 ft 15 secs. • 5S & Workplace Organization • Lean Camp, Basic • Employee Training & Involvement Training • Specific Training What Does It Look Like? Traditional Work: Standardized Work: • Manage symptoms • Eliminate root cause • React to fires • Prevent problems • Search for things • Find things easily • Engineers design • Processes
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