THESIS ON MECHANICAL ENGINEERING E92 Dynamic Management Framework for Continuous Improvement of Production Processes JEVGENI SAHNO PRESS TALLINN UNIVERSITY OF TECHNOLOGY Faculty of Mechanical Engineering Department of Machinery The thesis was accepted for the defence of the degree of Doctor of Philosophy in Engineering Sciences at Tallinn University of Technology on: 07.05.2015. Supervisor: Eduard Shevtshenko, PhD, Senior Research Scientist, Faculty of Mechanical Engineering, Department of Machinery, Chair of Production Engineering, Tallinn University of Technology, Estonia. Opponents: Ph.D. Stipe Čelar, Assistant Professor, Department of Computer Architecture and Operating Systems, University of Split, Croatia. Double Dr.sc.ing. Aleksandrs Boiko, (“Railway Transport”, field “Transport and Traffic Engineering”, subfield “Land Transport and Infrastructure” and “Applied Mechanics”, field “Mechanics and Machine Science”); Lecturer, Riga Technical University, Institute of Railway Transport; Chief Technologist, L- Ekspresis Ltd, Latvia. Defence of the thesis: 30.06.2015. Declaration: Hereby I declare that this doctoral thesis, my original investigation and achievement, submitted for the doctoral degree at Tallinn University of Technology, has not been submitted for any degree or examination. Copyright: Jevgeni Sahno, 2015 ISSN 1406-4758 ISBN 978-9949-23-792-0 (publication) ISBN 978-9949-23-793-7 (PDF) MEHHANOTEHNIKA E92 Tootmisprotsesside pideva parenduse dünaamiline juhtimisraamistik JEVGENI SAHNO CONTENTS INTRODUCTION ............................................................................................. 7 Background ...................................................................................................... 7 Research objectives and tasks .......................................................................... 8 LIST OF ABBREVIATIONS ......................................................................... 10 1. STATE OF THE ART ................................................................................. 11 1.1 Basic concepts applied in the research .................................................... 11 1.1.1 Key Performance Indicators ............................................................. 11 1.1.2 Analytic Hierarchy Process .............................................................. 13 1.2 Basic concepts applied in dynamic management framework .................. 15 1.2.1 Bill Of Materials ............................................................................... 15 1.2.2 Production Route Card ..................................................................... 15 1.2.3 Failure Classifier ............................................................................... 16 1.2.4 Failure Mode and Effect Analysis Methodology .............................. 16 1.2.5 Theory Of Constraints ...................................................................... 21 1.3 Review of methodologies and tools for continuous improvement .......... 22 1.3.1 Total Quality Management ............................................................... 22 1.3.2 ISO 9000 Standards .......................................................................... 23 1.3.3 Six Sigma .......................................................................................... 24 1.3.4 Lean Six Sigma ................................................................................. 26 1.3.5 Six Sigma DMAIC ........................................................................... 26 1.4 Tools applied in the Information System framework .............................. 29 1.4.1 Product Data Management ............................................................... 29 1.4.2 Enterprise Resource Planning ........................................................... 29 1.4.3 Extraction-Transformation-Loading ................................................. 30 1.3.4 Data Warehouse and Data Mart ........................................................ 30 1.4.5 ISA-95 Standard ............................................................................... 32 1.5 Summary of the Literature Review .......................................................... 33 2. FRAMEWORK DEVELOPMENT FOR CONTINUOUS IMPROVEMENT OF PRODUCTION PROCESSES ................................. 36 2.1 Actions in Define step ............................................................................. 36 2.2 Actions in Measure step ........................................................................... 38 2.2.1 Measure in FC .................................................................................. 38 2.2.2 Measure in FMEA ............................................................................ 38 2.2.3 Measure in FCC ................................................................................ 40 2.2.4 Measure in TOC ............................................................................... 42 2.2.5 Comparison of KPIs in AHP ............................................................ 42 2.2.6 Summary of Measure Step................................................................ 42 2.3 Actions in Analyse step ........................................................................... 43 2.3.1 Analyse in FMEA and FCC .............................................................. 43 2.3.2 Analyse in FMEA ............................................................................. 44 2.3.3 Analyse in FCC ................................................................................ 44 2.3.4 Analyse in TOC ................................................................................ 45 5 2.4 Actions in Improve step ........................................................................... 46 2.5 Actions in Control step ............................................................................ 46 2.6 Summary of the QCD framework ............................................................ 46 3. DEVELOPMENT OF DATA MART FOR THE NEW FRAMEWORK AND IDENTIFICATION OF NEEDED INFORMATION SYSTEM SOURCES ........................................................................................................ 48 3.1 Data Mart development and description .................................................. 48 3.2 Description of Information System environment for the Data Mart ........ 49 4. COMPUTATIONAL EXPERIMENT ....................................................... 54 4.1 Actions in Define step ............................................................................. 54 4.2 Actions in Measure step ........................................................................... 55 4.2.1 Measure in FC .................................................................................. 55 4.2.2 Measure in FMEA ............................................................................ 55 4.2.3 Measure in FCC ................................................................................ 57 4.2.4 Measure in TOC ............................................................................... 58 4.2.5 Comparison of KPIs in AHP ............................................................ 59 4.3 Actions in Analyse step ........................................................................... 60 4.3.1 Analyse in FMEA and FCC .............................................................. 60 4.3.2 Analyse in FMEA ............................................................................. 63 4.3.3 Analyse in FCC ................................................................................ 66 4.3.4 Analyse in TOC ................................................................................ 66 4.4 Actions in Improve step ........................................................................... 67 4.5 Actions in Control step ............................................................................ 70 4.5.1 Validation of the improvements ....................................................... 70 4.5.2 KPIs re-calculation ........................................................................... 72 CONCLUSIONS .............................................................................................. 74 Scientific novelty of the research .............................................................. 75 Future work................................................................................................ 76 ABSTRACT ...................................................................................................... 78 KOKKUVÕTE ................................................................................................. 79 ACKNOWLEDGEMENTS ............................................................................ 80 REFERENCES ................................................................................................. 81 LIST OF PUBLICATIONS ............................................................................ 89 APPENDIX ....................................................................................................... 90 CURRICULUM VITAE .................................................................................. 91 ELULOOKIRJELDUS ................................................................................... 92 6 INTRODUCTION Background Internal issues that many manufacturing companies face today are often surrounded by the idea that companies are aware of the problems they have, for instance, unreliable production processes, low product quality, financial losses, delay in product delivery, but they do not