Global Best Practise7th April 2014

Paul HardimanSMMT Industry Forum

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Many different thoughts on what global best practice is

Many different thoughts on what global best practice is

Many different thoughts on what global best practice is

Do you find it difficult to sustain improvements?

Would you like to achieve and sustain world class standards?

What is global best practise?

Understand where your losses / wastes are and their relationship to cost

Performance

Eliminate all losses and wastes – achieve zero accidents, zero defects and zero breakdowns

Performance

Prevent any negative impact on the environment

Performance

Develop relationships with customers and suppliers to drive loss from the supply chain

Performance

Design and maintain loss free information flows

Physical

Problem free vertical start up for new product introduction

1 Project plan 2 Project feasibility 3 Design 4 Procurement and

construction 5 Installation 6 Commissioning 7 Handover and review

EMM Step Function Input Activity Output Tools required

Who How What Why

Project team Material spec List potential problems MP Design

Charter information Checklist 1 : searching activity

Project team

Engineers Cost Estimation +/- 25 %

Basic material to organise the team

Checklist 2 : technical approach

Operation

Maintenance

TPM leader

Project team Project brief KPI Life Cycle Costing

Operation Loss tree Process FMEA

Maintenance FMEA

Suppliers QA Matrix with 4Ms

Buying Impact on production during project

Safety

Quality

Planning Prelim Eng. Report Functional design

Development PM Analysis

TPM leader

Project team Workshop information More detailed cost Checklist 3 : detailed

technical study

Supplier Material to write the capital proposal

Checklist 4 : project management

TPM leader

Project team Material to write the capital proposal

Capital Proposal

Project team Standard checklist for design &

PR1

Project plan

Project Feasibility

Design

Review existing MP data

Project Brief

Conceptual / Preliminary Eng.

Create KPI matrix PQCDSM including vertical start-up target

Team building / Kick-off meeting / workshop

Supplier Quotation / TPM awareness

DR 1

Design and maintain flexible manufacturing processes

Physical

What factors underpin success?

Effective policy deployment with improvements directly linked

Improve manufacturing capability NRFT < 1.5% •Improve turn round time of sales quotation Quote to customer < 4 hrs •

Achieve direct labour cost £5 per unit • •Achieve overhead labour cost £7 per unit •Achieve purchase part cost £15 per unit •

Dramatically improve customer quality

Owner A Dent

Achieve manufacturing cost target

Owner T Beaker

30/11/2010

16/12/2010

Annual Plan 2011

ACME

Annual Policy Timing

Eng

inee

ring

Plan

Pur

chas

ing

Control Item

Pro

duct

ion

Sal

es

Cat

egor

y

C

Q

Owner Chief Executive A Dent

Deployment Responsibility

£27 per unit

Reduce customer

complaints by 30%

Issue Date

Initial Creation Date

Dec 2011

Dec 2011

Target

ACME

Reduce unplanned over time 50% reduction • • • •

Q Improve manufacturing capability

Production Department A Issue Date 16/12/2010

Conduct 7 Waste activity to improve productivity

Increase People Productivity by 20%

80% reduction in frequency of occurrence of top

category•

Owner Dept. Mng. Z B Brox

Initial Creation Date 02/12/2010

•

•

Cat

egor

y

Objectives Target Timing

Annual Objectives Plan 2011

Plan

Dec 2011

•

> 85% team trained in a minimum of 4 key processesImprove skill level on key processes •

C Achieve direct labour cost £5 per unit Jul 2011

Control Item

Deployment Responsibility

Pre

p M

anag

er

Mak

ing

Mng

Conduct Problem Solving activity on top defect category

Fini

shin

g M

ng

Insp

ectio

n M

ng

NRFT < 1.5%

ACME

Q NRFT < 1.5%

3% / 2.25%

Previous improvement levelled out

QQuote to

customer < 4 hrs

5.9 hrs / 6 hrs -

C £5 per unit £5.57 / £5.50

Recovery plan on

track

C £7 per unit £8 / £8 -

C £15 per unit £16.50 / £16.50

Raw material

price doubled

Objectives Plan Review Form 2011 Owner A Dent

Initial Creation Date 01/01/2011

ACME Issue Date 12/04/2011

Cat

egor

y

PlanEnd Of

Year Target

Monthly Actual / Target

Jan

Improve turn round of sales quotation

Achieve direct labour cost

Achieve overhead labour cost

Achieve purchase part cost

DecEnd Of

Year Forecast

Trend (3

months)Comment

Improve manufacturing capability

Jun Jul Aug Sep Oct NovFeb Mar Apr May

ACME

Pareto chart defects by cat. •

Set up and run a cross shift Problem Solving Activity team

Unplanned overtime trend chart • •

•Pareto reasons for unplanned overtime

and develop countermeasures for top 20% reasons

Implement countermeasures

Control Item

C Reduce unplanned over time 50% reduction

Jul 2011

Pareto chart of hours unplanned overtime by

reason

Problem Solving Board

Q Conduct Problem Solving activity on top defect category

•

•

Initial Creation Date 09/12/2010

80% reduction in frequency of occurrence

of top category

Jul 2011

Sup

. Shi

ft B

Objectives

16/12/2010

Deployment Responsibility

Sup

. Shi

ft A

Annual Objectives Plan 2011 Owner Prep Manager F Prefect

Cat

egor

y

Target Timing Plan

Preparation Area Production Department A Issue Date

Sup

. Shi

ft C

ACME

11 12 13 14 15 16G

A

G

R

G

G

G

KeyCurrent status line

Planned Future Action Overdue Action with catch back plan

Completed Action Overdue Action without catch back plan

ROverall Status

Detailed Plan Monitor 2011Preparation Area Shift A

Week Number

Identify and verify root causes

Supervisor

T Starke

Plan Detail Status

Choose permanent countermeasures

Plan Set up and run a cross shift Problem Solving Activity team

Invite 2 people per shift onto PS team

Run initial training in Problem Solving

Set up data collection sheets for defects

Set up Problem Solving Activity board

Pareto defects

ACME

Q

>85% trained in

min 4 processes

35% / 21%

Ahead of plan

Q

80% reduction in frequency of

top category

0 / 0

Finishing dept on

schedule. Prep behind

C 50% reduction

10% / 15%

Recovery plan working

C

Increase People

Productivity by 20%

10% / 10% -

DecEnd Of

Year Forecast

Trend (3

months)Comment

Improve skill level on key processes

Jun Jul Aug Sep Oct NovFeb Mar Apr May

Conduct Problem Solving activity on top defect category

Reduce unplanned overtime

Conduct 7 Waste activity to improve productivity

Objectives Plan Review Form 2011 Owner Department Manager Z B Brox

Initial Creation Date 01/01/2011

Production Department A Issue Date 07/04/2011

Cat

egor

y

PlanEnd Of

Year Target

Monthly Actual / Target

Jan

ACME Policy Proposal

Sales Reduce total number of complaints by 30%

Dramatically improve customer quality Reduce customer complaints by 30%

M Owen Deployment Responsibility

Proposed duration

Internal NRFT Q1< 2.25 %, Q2 <2%, Q3<1.75%,

Q4<1.5%

Identify and resolve largest customer complaint issue

Production, Sales

Policy Statement Target

2011

Situation

We are under threat from a new competitor in the market for Product X. Although our NRFT performance to the customer improved to 967 ppm last year, our internal NRFT was 25000 ppm. We also employ 1 person full time to deal with customer complaints.

Improve manufacturing capability Production departments

Objectives Owner Control Item

Proposer

Policy Proposal

Sales Reduce total number of complaints by 30%

Dramatically improve customer quality Reduce customer complaints by 30%

M Owen Deployment Responsibility

Proposed duration

Internal NRFT Q1< 2.25 %, Q2 <2%, Q3<1.75%,

Q4<1.5%

Identify and resolve largest customer complaint issue

Production, Sales

Policy Statement Target

2011

Situation

We are under threat from a new competitor in the market for Product X. Although our NRFT performance to the customer improved to 967 ppm last year, our internal NRFT was 25000 ppm. We also employ 1 person full time to deal with customer complaints.

Improve manufacturing capability Production departments

Objectives Owner Control Item

Proposer

Policy Proposal

Sales Reduce total number of complaints by 30%

Dramatically improve customer quality Reduce customer complaints by 30%

M Owen Deployment Responsibility

Proposed duration

Internal NRFT Q1< 2.25 %, Q2 <2%, Q3<1.75%,

Q4<1.5%

Identify and resolve largest customer complaint issue

Production, Sales

Policy Statement Target

2011

Situation

We are under threat from a new competitor in the market for Product X. Although our NRFT performance to the customer improved to 967 ppm last year, our internal NRFT was 25000 ppm. We also employ 1 person full time to deal with customer complaints.

Improve manufacturing capability Production departments

Objectives Owner Control Item

Proposer

Policy Proposal

Sales Reduce total number of complaints by 30%

Dramatically improve customer quality Reduce customer complaints by 30%

M Owen Deployment Responsibility

Proposed duration

Internal NRFT Q1< 2.25 %, Q2 <2%, Q3<1.75%,

Q4<1.5%

Identify and resolve largest customer complaint issue

Production, Sales

Policy Statement Target

2011

Situation

We are under threat from a new competitor in the market for Product X. Although our NRFT performance to the customer improved to 967 ppm last year, our internal NRFT was 25000 ppm. We also employ 1 person full time to deal with customer complaints.

Improve manufacturing capability Production departments

Objectives Owner Control Item

Proposer

11 12 13 14 15 16

KeyCurrent status line

Planned Future Action Overdue Action with catch back plan

Completed Action Overdue Action without catch back plan

Overall Status

Detailed Plan Monitor 2011Preparation Area Shift A

Week Number

Identify and verify root causes

Supervisor

T Starke

Plan Detail Status

Choose permanent countermeasures

Plan Set up and run a cross shift Problem Solving Activity team

Invite 2 people per shift onto PS team

Run initial training in Problem Solving

Set up data collection sheets for defects

Set up Problem Solving Activity board

Pareto defects

ACME

catchball process

+ values + vision + mission + mid term plan + customer + business environment + review

Select the vital few

Q

80% reduction in frequency

of top category

0/0Results not expected until May

C

C

Set Up and run a cross shift Problem Solving Activity team

Pareto reasons for unplanned overtime and develop countermeasures for top

20% reasons

Implement countermeasures for unplanned overtime

Sep

Owner

Initial Creation Date

Issue Date

Jul

Detailed Plans Review Form 2011

End Of Year

ForecastCat

egor

y

PlanEnd Of

Year Target

Monthly Actual / Target

Aug

Preparation Area Production Department A

JunMayApr Oct NovMarFebJan

Prep Manager F Prefect

01/01/2011

02/04/2011

Trend (3

months)CommentDec

50 % reduction 0/0

Results not expected until July

ACME

annual review

Turn annual policies into objectives and plans

Integrate into the daily routine

Involve everybody in policy deployment and improvement activities

Training is a key to success

Develop a flexible work force with good problem solving skills

Why?Why?Why?

Why?Why?

Effective process based management systems

CustomersFeedback

CustomersRequirements

CustomerRequirements

CustomerSatisfaction

Continual improvement

InputProduct realization Product

Output

Measurement,analysis andimprovement

Managementresponsibility

Resourcemanagement

Effective management of change

Use both formal and informal, effective communication techniques

Can I see this in practice?

Japan Best Practice

Programme15 Nov – 22 Nov

2014

• Visits to world class organisations

• Lectures by globally recognised experts

Previous Delegate Feedback

‘’One of the many benefits of the programme was in the value of TPM information exchange that we could use to support acceleration of our continuous improvement approach moving us towards a more responsive and efficient supply organisation’’Steve Ellam: Director, Carlsberg

“During this visit you have a fantastic opportunity to see best practice at work and sustainable in world class companies”Daryl Steel: Facilities Manager, Perkins Engines

“This programme will help you to see things in a whole new way and shock you with all the things you have been missing”Adam MacNaughton, Trim and Final Assembly Area Manager, Jaguar Land Rover

Japan Best Practice

Cost per delegate: £5,850.00

10% discount to any webinar participants on this based on commitment to attend by the end of May 2014.

Cost per delegate includes;• Transportation in Japan to and from Narita airport and hotel• Hotel accommodation in Tokyo and Nagoya to cover standard room

charge including taxes and breakfast• Transportation in Japan by luxury coach for all business visits• Support throughout the visit by Associates of Industry Forum• Services of a professional interpreter during company visits• Speaker fees for guest lectures• Welcome reception on arrival (dinner)• Farewell reception (dinner)• Further two group evening meals• A half day sightseeing tour of Tokyo on Sunday

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