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  • Strength. Performance. Passion.

    © 2015 Holcim (Australia) Pty Ltd

    Continuous Process Improvement &

    Lean Six Sigma in Humes

    Presented at NCPAA 28/8/15 by: Damien Richards – National

    Operations & Engineering Manager

  • © 2015 Holcim Ltd

    Content

    Continuous Process Improvement 3

    LafargeHolcim & Humes CPI Program 8

    The 8 Wastes 10

    5S 19

    Humes Sites CPI 45

    Where to next for Humes in CPI 59

  • © 2015 Holcim Ltd

    Continuous Process Improvement (CPI)

  • © 2015 Holcim Ltd

    ✓ by eliminating waste

    ✓ streamlining

    ✓ making the process flow

    CPI IS NOT about reducing Manpower!!!

    CPI is all about increasing efficiency

    NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27

  • © 2015 Holcim Ltd

    CPI Basics

  • © 2015 Holcim Ltd

    CPI / Lean Six Sigma what is this about?

    NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27

  • © 2015 Holcim Ltd 7

    Define

    Measure

    Analyze

    Improve

    Control

    Create

    Project

    Definition

    Map the

    process

    Capture

    customer

    requirements

    Validate

    Measurement

    System for

    output Y

    Collect

    data

    Establish

    Baseline

    Capability

    Identify potential

    sources of

    variation and Waste

    Analyse root

    causes

    Establish

    potential process

    improvements

    Prioritise

    key X’s -

    process

    inputs

    Implement

    control plan

    Document

    Process.

    Implement

    Controls

    Monitor Project

    Performance

    Over Time

    Determine Final

    Process

    Capability

    D M A I C Roadmap

    Identify

    Solution

    Plan

    Improvements

    Validate

    Solution Implement

    Improvements

    G a te

    r e v

    ie w

    G a te

    r e v

    ie w

    G a te

    r e v

    ie w

    NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27

  • © 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27

    LafargeHolcim CPI Program

  • © 2015 Holcim Ltd

    LafargeHolcim CPI Program

    •CPI / Lean Six Sigma Yellow Belt Awareness Training (1 day)

    •CPI / Lean Six Sigma Green Belt (8 days)

    •CPI / Lean Six Sigma Black Belt (8 days)

    •Lean Manager (4 days)

  • © 2015 Holcim Ltd

    The Humes Yellow Belt CI course was

    run across all 13 sites and trained

    participants in;

    • 8 Wastes

    • Process Mapping

    • Spaghetti Diagrams

    • 5S

    • Visual Measurement

    Humes Yellow Belt CPI Yellow Belt training

    Skills

  • © 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27

    The 8 Wastes

  • © 2015 Holcim Ltd

    The 8 Wastes

    Skills

    The 8 Wastes

    NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27

  • © 2015 Holcim Ltd

    All material movement or handling is considered non-value added by the customer

    Transportation, does not add value and should be minimized or eliminated

    Causes:

    • Large distance between operations

    • Poor layout

    • Batch processing

    • LIFO vs. FIFO

    • Finite storage areas

    Waste 1 – Transportation

    NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27

  • © 2015 Holcim Ltd

    Waste 2 – Inventory

    Any material other than what is immediately needed.

    It exists as raw materials, WIP or finished goods.

    Inventory should act as a buffer and only exist to satisfy customer demand

    Causes:

    • Relying on forecasting systems

    • Long lead times

    • Unknown market demand

    • Poor scheduling

    • Supplier reliability

    • Inventory is comforting • Buffer against downtime • Over ordering

    NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27

  • © 2015 Holcim Ltd

    Any movement of people which does not contribute value to the product or service

    Extra movements when getting tooling, information etc

    Causes:

    ● Poor work arrangement

    ● Poor work layout

    ● Poor facilities

    ● Not enough tooling

    or equipment

    ● Lost items (searching)

    ● Non ergonomic work set up

    Waste 3 – Motion

    NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27

  • © 2015 Holcim Ltd

    Any idle time, waiting for:

    ● Equipment/material

    ● Decisions

    ● People

    ● Inspection

    ● Maintenance

    ● Paper work/information

    Underutilizes resource and results in a decline in productivity.

    Causes: “‘Stuff’ not available at the right time in the right place”

    ● Poor layout

    ● Poor work balance

    ● Unreliable equipment

    Waste 4 – Waiting

    NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27

  • © 2015 Holcim Ltd

    Producing more than needed and before it’s needed.

    Production should be driven by customer demand

    i.e. produce what the customer wants when the customer wants it

    Causes:

    • Make a little more just to be on the safe side

    • Overcapacity and the need to keep busy

    • Unreliable equipment or processes

    Overproduction creates more problems and hides the real causes of the problems

    Waste 5 – Overproduction

    NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27

  • © 2015 Holcim Ltd

    Effort which adds no value to a product or service

    Tasks, process steps, time allocated and parts provisioning are more involved than needed to achieve customer requirements

    Waste 6 – Over Processing

    Causes:

    • That’s the way we’ve always done it

    • No standard work

    • Mistakes in process

    • Excessive checking

    • Closed-minded thinking

    • Poor layout

    • Improper fixtures, tools, jigs

    • Poor communication between process steps

    What the

    customer

    wanted and

    paid for.

    An over

    processed

    product

    NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27

  • © 2015 Holcim Ltd

    Waste 7 – Defects

    Scrap / Rework from a poorly running process, repair of a product or service to fulfil customer requirements

    Task improperly performed due to human factors

    Defective materials and Incorrect information

    • Causes:

    • Incorrect specifications

    • Damaged or lost materials

    • Poor/no training

    • Misunderstandings

    • Storage concerns

    • Passing on defects

    NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27

  • © 2015 Holcim Ltd

    Waste 8 – Skills

    Under utilizing capabilities, delegating tasks with inadequate training.

    "It is only by capitalizing on employees' creativity that organizations can eliminate the other seven wastes and continuously improve their performance”

    Causes:

    When employees potentials are not leveraged on by the organization, the opportunity cost becomes a direct waste to the bottom line. Other examples of this waste are as follows:

    • Persons put on the wrong job

    • Giving position without the requisite authority

    • Not dealing with perpetual under performance.

    NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27

  • © 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27

    5S

  • © 2015 Holcim Ltd

    5S is a systematic, step-by-step process to produce a clean and well organized work area

    5S is based on the premise that a clean and well organized work place is more productive, less frustrating and safer for employees.

    In a clean well organised workplace you can spot abnormalities and address them

    How?

    5S allows you to remove the clutter around an operation and see how a process is really working ….or not working.

    You set the goals high and accept nothing less.

    NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27

    What is 5S?

    5S

  • © 2015 Holcim Ltd NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27

    5S Stands for….

    1S - Sort

    2S - Straighten

    Sort needed and unneeded items;

    eliminate what is not needed

    A place for everything and everything in its place

    Clean up the workplace; this is cleaning and looking

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