continuous process improvement & lean six sigma in humes€¦ · continuous process improvement...

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

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Continuous Process Improvement (CPI)

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✓ 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

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CPI Basics

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CPI / Lean Six Sigma what is this about?


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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

Gate

rev

iew

Gate

rev

iew

Gate

rev

iew


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

LafargeHolcim CPI Program

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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)

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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


The 8 Wastes

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The 8 Wastes

Skills

The 8 Wastes


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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


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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


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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


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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


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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


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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


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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


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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.



5S

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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.


What is 5S?

5S


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

for ways to keep it clean 3S - Shine

Maintain and Monitor the first 3 S’s; Standardise so

everyone is doing it the same

Make the 5S’s part of the job; measure progress; stick to the

rules

4S - Standardise

5S - Sustain

5S

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5S in a Nutshell


1S - Sort Sort through, and sort out.

Rules for the first S – Sort:

Only keep the items you need in the area to perform the work at hand

If you won’t need it in the near future, don’t keep it in your area

In some cases, you may consider removing everything from the area, and starting over

Make a visual record

5S

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1S - Sort

5S


Red Tag Area

The unnecessary items can be moved out to a ‘red tag’ holding area.

The remaining necessary items can be then organized.

Label all items in need of repair or adjustment

The items can be repaired and placed back in good working order

Decide on a time frame for disposal of items

Red tag area is NOT a long term storage solution!!!

5S


2S - Straighten

The full meaning of the second ‘S’ is:

To straighten out the area, simplify the work by putting things where they are needed and reduce unnecessary movement.

Decide and organize where to keep necessary items.

Organize how to keep them.

Make it easy for anyone to find and use them.

Make it obvious when they are not in their correct place.

5S


2S - Straighten Analyze current situation

By locating parts, equipment, machinery and tooling, files, desks… in the best location possible, we can minimize motion waste

Analyze area map

Organize – decide on a location of items based on the frequency of their use

Start with large items (furniture, file cabinets, benches, etc)

Make sure it’s obvious where things belong

Lines

Labels

Sign boards

This ensures anyone can find them and put them away!

A place for everything and everything in it’s place

5S


Straighten – Work Flow

Set up work place in the

order that equipment is going

to be used

When setting in order, think

about the flow of work

through your area.

5S


Deciding where it goes

A Category = used frequently (at least daily)

Store within easy reach and as close as possible to

the point of use.

B Category = used often (at least once a

week)

Store close to the point of use but out of the

way

C Category – Used infrequently (once a month or less)

Store away from the workplace in a clearly marked area

5S


Storing Items

Organize your storage areas by “Street”, and “Address”.

Give items a permanent home.

How to store items so they are easy to find, and easy to replenish.

1

2

3

4

5

C B A

Maximum stock quantities are marked off.

5S


Lines

Paint is normally used, but tapes or acrylic sheets are

also suitable

Start drawing lines to identify aisles

and work areas

One-way or two-way traffic?

Use broken lines for exits and

entrances

5S


Possible Floor marking - colour standards

Green – First Aid

Red – Fire

Blue – Bins

Yellow – Walkways

Ensure each area is also labelled

5S


Tools and Equipment Can tool/equipment be eliminated?

Can complexity or variety of tools be reduced?

Tools/equipment should be arranged ergonomically

Worker must easily identify storage locations for tool/equipment

5S

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BEFORE AFTER

5S


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5S



Work

instructions

visible and at

eye level

Tools required

are at arms

reach and

over waste

height

Operator

doesn’t need

to leave work

station to find

necessary

equipment

Shadow board

makes tools

easy to find

and indicates

when they are

missing

Point Of Use Storage

5S


3S - Shine

When things are in top condition, they will be ready to use when

we need them

We are not cleaning just to clean, keep eyes open for anything

out of the norm

- CleanIing is Inspection

- Inspection is Detection

- Detection is Correction

5S


Shine – Eliminate contamination

Now we can see the condition of

the machinery it is much easier to

detect problems

Is this piece of machinery

running efficiently?

Machines are normally grey to “mask” dirt and oil.

5S


4S - Standardise How to keep things as you want them:

Develop standards including frequency and responsibilities

» Who is responsible

» What goes where

» How often to sweep, clean, organize...

» What to do if things are not as expected

Involvement is the key to a successful set of standards

Three examples of standardisation

Check sheets

Daily Logs – with sign off and date/time

Work instructions

5S

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Use of Visual Management techniques for WIP and

storage

4S - Standardise

5S


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4S - Standardise

5S



5S - Sustain

Without Sustain, the other S’s will not last long.

Everyone must follow the agreed upon standards.

Without Discipline – building the right behaviours, building good

habits, things tend to go back to the way they were.

5S

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Sustaining 5S

5S


5S – Sustain

Motivate Employees to Sustain

Leadership is the key

Management at all levels must be committed

Staff must ensure that the work area meets 5S principles at the end of each day

Use audits / checklists for monitoring adherence

Quantify results of workplace inspections

Prominently display each area’s results

Hold competitions between areas

Use rewards and recognition

5S


Sustain Tools… Audit Score Sheet Location: Date: Score: 0

Audited by Previous Score:5

Best Practice; World Class; General Manager review

;Sustained for at least 6 months

Action to improve score

1

2

3

4

5

0

6

7

8

9

10

0

11

12

13

14

15

0

16

17

18

19

20

0

21

22

23

24

25

0

0

STEP 2: Straighten

STEP 3: Shine

STEP 4: Standardise

First Impression

Overall

Only the current levels of inventory in the area is needed for the w ork at hand. Scrap

and rew ork items are placed in clearly marked containers.

Only the necessary items to perform the w ork at hand are located in the area. There

are no unneeded machines, tools or furniture in the area.

All tools, f ixtures and jigs in the area are used on a regular basis. Any items that are

used less than once a day, are stored out of the w ay.

No outdated, torn or soiled announcements are displayed. All bulletins are arranged in a

straight and neat manner.

Your general impression should tell you this is the best you have seen for a

manufacturing environment.

Components,

materials & parts.

Machines, benches,

cabinets & furniture.

Tools, f ixtures &

other equipment.

Bulletin Boards

SORT TOTAL SCORE

SUSTAIN TOTAL SCORE

OVERALL SCORE

STANDARDISE TOTAL SCORE

SHINE TOTAL SCORE

STRAIGHTEN TOTAL SCORE

Machines, benches, etc. are arranged in a logical & neat fashion to promote a smooth

product f low through the w ork area.

Lines on the f loor clearly mark aisles, w alkw ays, w ork areas, storage locations and

danger areas.

Only current labelled documents and binders necessary to do the w ork are stored at

w orkstations. Documents and binders are stored in a neat and orderly manner.

Items are arranged, divided, and clearly labelled such that it is obvious w here things are

stored and if they are missing.

Tools, gages and f ixtures are arranged neatly and stored, kept clean and free of any

risk from damage. They are located for easy access for changeovers.

All f loors are clean and free of debris, oil, and dirt. Cleaning of f loors is done routinely

and at appropriate predetermined intervals.

Routine cleaning of machines is apparent, there is no oil, chips, scrap laying on w ork

surfaces. Glass view w indow s, guards, deflectors are clean & in place.

All cleaning equipment (trash cans, brooms, f loor sw eep, etc.) are stored in a neat

manner. It is obvious w here it belongs and is easily available w hen needed. Hazardous

materials and all storage containers are properly labelled.

All equipment, benches, fans… everything in the area is cleaned on a regular basis, and

ow nership by operators goes beyond just the machine they run.

When unexpected delays occur, operators habitually & automatically sw eep floors &

w ipe equipment.

Display boards are present in each production w ork area and accessible to all

personnel in the area.

5S audits are performed in each w ork area at least monthly, results are shared w ith all

w orkers and goals for new levels set w ith action items.

PPE notices are posted in every area and all employees are w earing the required PPE's.

It is obvious that w orkers w ho perform similar duties, use standard methods to achieve

consistent results.

Methods are review ed on a regular basis, and as new methods are developed, they are

quickly documented and adopted by others.

Employees are adequately deployed to keep equipment operating properly. A Preventive

Maintenance program is in place and functions at a high level.

STEP 5: Sustain

Methods review ed

Safety

Standard w ork

Each area of the operation, inside and out, falls under the responsibility of a manager

w ith 5S auditing and assignment authority.

All documents and binders are clearly labelled as to their contents. Responsibility for

control & revisions is clear. Nothing is unlabeled.

Responsible manager/staff person visits each w ork area on a regular basis and

provides feedback on 5S efforts and results.

Disciplined controls to assure each of above items is maintained at highest level. There

is a sense of responsibility by all employees to maintain systems.

Area layout

Aisles, w alkw ays

and f loor markings

Documentation and

Visual signals

Visual displays and

storage

5S audit

STEP 1: Sort

Cleaning beyond

machines

Cleaning due

diligence

1 2

Specif ic locations for

f ixtures & tooling

Condition of f loors

Machines/Equipment

Cleaning supplies

and tools

Visual Control

Weekly/Monthly

audits

4Not started; zero effort Activity started, slight

effort

Best in Class results;

Manager/Supervisor review;

Sustained for 1 month

3Minimum acceptable

level sustained for at

least 1 month

Widespread activity; however

still many opportunities for

improvement

0

5S Control &

Sustaining

Maintenance

Area Responsibility

Documents: Control

Work Area Visits

Hint: Use this in the 5S Pre-

Work. Use it to establish a

baseline for any 5S activity!

5S


5S – First Steps

Complete a baseline audit

Complete 5S contract and timeline

Set up board

Set target audit score to get to sustain

Construct an audit plan

Complete action item list

Plan 5S activity time

5S


Humes journey to date and

some examples of CPI in

action

© 2015 Holcim Ltd

• One of the Rockhampton teams

scored the highest improvement

in Humes in the courses mock

factory exercise.

Humes Yellow Belt training activity

• Rockhampton’s Operations &

Production Managers, Supervisors,

Production Engineer and Leading

hands all undertook the Yellow Belt

training in early July 2014.

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• Monthly 5S auditing and scoring in

place.

• Actions to improve scores in all areas

delivering improvement results.

Rockhampton now has a 5S Program in place

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• Detailed Waste analysis undertaken.

• Short and long term plans put in

place to remove/reduce wastes.

• 57 detailed actions undertaken to

meet short and long term plans.

Waste Analysis and removal/reduction

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Visual Measurement Boards

Ipswich

NPCAA CPI Presentation Aug 2015, HANZ, Damien Richards, 2015-08-27 54

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• Video Cameras Purchased

• filming mould changes & quality problems

• Parts List Developing with Repair buckets Implemented

5S Improvements


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• Progress with Kanban systems around critical spares

• Completed for foot anchors

“Simplicity is the ultimate form of sophistication”

5S Improvements


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• Reo issue analysed by fishbone diagram, reo jig corrected for

clear practice.

BEFORE AFTER

Root Cause Analysis


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15min Flash Meetings


• 15 min daily meeting covering; PROCESS: All items are categorized and chart developed in excel into red and green. If in green, congratulated and

moved on. If in red, there is room for improvement and/or further discussion is required. All meeting participants

update their area 5-10 minutes prior to meeting. Purpose of the meeting is an information gathering session to

assess key areas around the plant and each area’s performance in past 24 hours. It then looks forward and

discusses forecasts and flags issues that could affect projections for next 24-48 hours. It is not a problem solving

meeting! Actions are assigned and dealt with outside of meeting hours.

FLOW:

• Past 24 Hours: WHS & E, People and Development, Customer Related material and Operational

• Excellence.

• Next 24- 48 hours: Customer & Operational forecast, Items around the Plant

• Commercial Effectiveness: Issues that Influence a Day’s work in a day.

• Actions

• Other Issues/Comments


Where to next for Humes