value adding activities - lean concepts

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arlos E. DaSilva (978)442 4821 [email protected] 0110 W orcesterSection January M eeting -2004 Lean Concepts to Meet: Value-adding Activities By Carlos Eduardo DaSilva SMART CAR. SMART CAR. SMART PEOPLE SMART PEOPLE . . SMART COMPANY. SMART COMPANY.

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Visual Management based in real time data from production and quality control, using lean approach and supplier development

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Page 1: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

0110 Worcester Section

January Meeting - 2004

Lean Concepts to Meet:Value-adding Activities

By Carlos Eduardo DaSilva

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

Page 2: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

Tyco Electronics is the world-leading supplier of passive electro-mechanical components. The high-tech products of its brands like AMP, ASG, EC, Elcon, Elo TouchSystems, HTM, M/A COMM/A COM, Madison Cable, Netconnect, Raychem, SIMEL, Schrack, OEG and P&B have been used in various applications of the following sections:

• Automotive • Communications-Equipment• Computer and Consumer Electronics• Industrial and Commercial• Energy• Modules and Relays• Wireless Products

• Telecom and Outside Plant• Premises Wiring• Connectors/Interconnection Systems• Application Tooling• Energy• Printed Circuit Boards• Wire and Cable Products

TYCO ELECTRONICS IN PROFILETYCO ELECTRONICS IN PROFILETYCO ELECTRONICS IN PROFILETYCO ELECTRONICS IN PROFILE

Page 3: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

DISTRONIC ADAPTIVE CRUISE CONTROLDISTRONIC ADAPTIVE CRUISE CONTROLACC Lab – Lowell , MAACC Lab – Lowell , MA

Tyco International

Tyco Electronics

M/A COMwww.macom.com

Microwave Solutions Business Unit

Automotive Sensors and Telematics Group

Page 4: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

S-Class Mercedes

DC Actros Truck

CL Mercedes

E-Class Mercedes

Nissan Cima

Cadillac DeVille

Coming 2004

THE CUSTOMERSTHE CUSTOMERSTHE CUSTOMERSTHE CUSTOMERS

Page 5: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

Dimensions (mm) Width: 137.6Length: 146.9Height: 57.9

ACC 77 GHz Sensor

Frequency 76 to 77 GHz

Technology Pulsed Doppler

MMIC based design

Output Power 58 to 66 dBm EIRP*G/F

Antenna 3 beams separated by 3.5°

Electronic beam switching

Beam Width 3 degree (-6 dB)

Sidelobes -30 dB Min

Freq Switching < 5 nS

THE PRODUCTTHE PRODUCTTHE PRODUCTTHE PRODUCT

Page 6: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

Data transformed becomes information.Data transformed becomes information.

Information transformed becomes intelligence.Information transformed becomes intelligence.

Intelligence transformed becomes competitive advantageIntelligence transformed becomes competitive advantage ..

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

QUALITY AS RESULT OF HUMAN EXCELLENCEQUALITY AS RESULT OF HUMAN EXCELLENCEQUALITY AS RESULT OF HUMAN EXCELLENCEQUALITY AS RESULT OF HUMAN EXCELLENCE

HOW TO MAKE THE CHANGEHOW TO MAKE THE CHANGEHOW TO MAKE THE CHANGEHOW TO MAKE THE CHANGE

Page 7: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

GROUP BEHAVIOR / ORGANIZACIONALTEAM BEHAVIOR

Management

INDIVIDUAL BEHAVIOR SKILLSINDIVIDUAL BEHAVIOR SKILLSACTION

INDIVIDUAL BEHAVIOR SKILLSINDIVIDUAL BEHAVIOR SKILLSACTION

ATTITUDE COMPETENCEATTITUDE COMPETENCE

Assurance

ATTITUDE COMPETENCEATTITUDE COMPETENCE

Assurance

KNOWLEDGEKNOWLEDGEKNOWLEDGEKNOWLEDGE

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

TRANSITION CYCLETRANSITION CYCLETRANSITION CYCLETRANSITION CYCLE

Page 8: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

Tools: Balanced Scorecard; 6Sigma; Corrective/Preventive Actions Notification; Audits (System/Process/Product) ; Recognition Program; etc.

IPIKNOWLEDGE SYSTEM

Project A 2002 Project B 2003 Project C 2005

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

THE PLANTHE PLANTHE PLANTHE PLAN

Page 9: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

PEOPLEPEOPLE

PROCESS

PROCESS

PROCESS

PROCESS CO

NTR

OL

CON

TRO

L

CON

TRO

L

CON

TRO

L

PEOPLEPEOPLE

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

THE ACTIONTHE ACTIONTHE ACTIONTHE ACTION

Page 10: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

KEY LEAN CONCEPTSKEY LEAN CONCEPTSKEY LEAN CONCEPTSKEY LEAN CONCEPTS Plant Level

“It transfers the maximum number of tasks and responsibilities

to those workers actually adding value to the car on the line, and it has

in place a system for detecting defects that quickly traces every problem, …”

“It transfers the maximum number of tasks and responsibilities

to those workers actually adding value to the car on the line, and it has

in place a system for detecting defects that quickly traces every problem, …”

THE MACHINE THAT CHANGED THE WORLDJames P. Womack, Daniel T. Jones, and Daniel Roos

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

Page 11: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

TP

S

THE BENCHMARKTHE BENCHMARKTHE BENCHMARKTHE BENCHMARK

Page 12: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

“Thinking”Production

System

= ToyotaT

THE BENCHMARKTHE BENCHMARKTHE BENCHMARKTHE BENCHMARK

Page 13: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

PROCESS(Set of interrelated or interacting activities –

must be inspected and controlled)

INPUT OUTPUT

(Includes Resources)

PRODUCT(Result of a process – Must be Audit)

MONITORING AND MEASUREMENT OPPORTUNITIES FOR IMPROVEMENT

Before, during and after the process

THE ISO APPROACHEDTHE ISO APPROACHEDTHE ISO APPROACHEDTHE ISO APPROACHED

Page 14: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

IPIKNOWLEDGE SYSTEM

Tools: Balanced Scorecard; 6Sigma; Corrective/Preventive Actions Notification; Audits (System/Process/Product) ; Recognition Program; etc.

Project A Project B Project C2002 2003 2005

Database

Reports

MRB

Metrics

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

THE PLANTHE PLANTHE PLANTHE PLAN

Page 15: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

THE RESULTTHE RESULTTHE RESULTTHE RESULT

• REAL TIME INFORMATION• REAL TIME KNOWLEDGE• REAL TIME DEFECT IDENTIFICATION• REAL TIME CICLE TIME• REAL TIME COST OF POOR QUALITY• REAL TIME PROCESS VARIABLE STUDY• REAL TIME TEAM WORK

Page 16: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

WASG Pareto of Defects - Twist Plate Assembly

1000009164-0001

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MSBU

Created 10/1/2002 1:05:01 AM

[email protected]

THE MANAGEMENTTHE MANAGEMENTTHE MANAGEMENTTHE MANAGEMENT

Page 17: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

AUTOMOTIVE SENSORS PRODUCT LINE Weekly First Pass Yield for ACC LAB ( 1000009164-0001 )

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

13 '02 14 '02 15 '02 16 '02 17 '02 18 '02 19 '02 20 '02 21 '02 22 '02 23 '02 24 '02 25 '02 26 '02 28 '02 29 '02

Weeks

FPY 2nd Pass WIP Scrapped

MSBU

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

THE MANAGEMENTTHE MANAGEMENTTHE MANAGEMENTTHE MANAGEMENT

Page 18: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

THE MANAGEMENTTHE MANAGEMENTTHE MANAGEMENTTHE MANAGEMENT

IPI MANAGEMENT REVIEW LEVEL

Quality Assurance

IPI ENGINEERING REVIEW LEVEL

Quality Control

IPI – OPERATOR LEVEL

Quality Management

Effectiveness Efficiency

Page 19: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

When we talk about defects in our factories, we are talking about defective processes. If there’s a defective process, it’s going to

turn out defective products.However hard you examine a defective product,

it doesn’t improve the process. So we should focus on defective processes.

Components move from supplier to supplier in a flow,and unless an excellent control system is in place, it’s impossible to prevent defects from occurring.

Teruyuki Minoura, Former President,Toyota Motor Manufacturing, North America

Page 20: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

IPIKNOWLEDGE SYSTEM

COMAKERSHIPSUPPLIER MANAGEMENT

Tools: Balanced Scorecard; 6Sigma; Corrective/Preventive Actions Notification; Audits (System/Process/Product) ; Recognition Program; etc.

Project A Project B Project C2002 2003 2005

Database

Reports

MRB

Metrics

Database

Reports

SCAR

Metrics

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

THE PLANTHE PLANTHE PLANTHE PLAN

Page 21: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

WHAT IS CO-MAKERSHIP ?WHAT IS CO-MAKERSHIP ?

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

Its the establishment of a relationship management between Customer and Supplier to achieve the extremely value add and the total customer satisfaction, through: Quality AgreementQuality Agreement

Lean Supply ChainLean Supply Chain Just in TimeJust in Time

Page 22: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

Completed

In process

Supplier Guide

Draft Version

Quality Agreement

Draft Version

Supplier Guide

Draft Version

Supplier Guide

Draft Version

Quality Agreement

Draft Version

Supplier Database

Draft Version

Supplier Relationship

Process

Supplier Agreement

Meeting

Review draft SRG and QAA ;Review draft SRG and QAA ;Meeting with Sensors Product Line Team;Meeting with Sensors Product Line Team;Meeting with Supplier Quality Manager;Meeting with Supplier Quality Manager;Release SRG and QAARelease SRG and QAA

CRITICAL & VITAL CRITICAL & VITAL

Implement Supplier

Relationship Management

Week 27 29 33 36 40 45 48

Time Line FY’ 03

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

THE SUPPLIER RELATIONSHIPTHE SUPPLIER RELATIONSHIPTHE SUPPLIER RELATIONSHIPTHE SUPPLIER RELATIONSHIP

Page 23: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

Supplier Relationship GuideSupplier Relationship Guide

All suppliers of Automotive Sensors Product Line

Based on ISO 9001:2000 and ISO/TS 16949:2002 with references toVDA 6.1 and QS 9000:1998

Note: M/A COM internal procedures

Supplier Relationship GuideSupplier Relationship Guide

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

THE GUIDETHE GUIDETHE GUIDETHE GUIDE

Page 24: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

QAAQAAQQuality uality AAssurance ssurance

AAgreementgreementSelected suppliers

Follow the needs of Automotive Sensors Product Line

Technical Agreement with focus on Product Realization and Process Control

Request FMEA, Control Plan, and Corrective Action (8D)

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

THE AGREEMENTTHE AGREEMENTTHE AGREEMENTTHE AGREEMENT

Page 25: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

IPIKNOWLEDGE SYSTEM

COMAKERSHIPSUPPLIER MANAGEMENT

VISUAL VISUAL FACTORYFACTORY

Tools: Balanced Scorecard; 6Sigma; Corrective/Preventive Actions Notification; Audits (System/Process/Product) ; Recognition Program; etc.

Project A Project B Project C2002 2003 2005

Database

Reports

MRB

Metrics

Database

Reports

SCAR

Metrics

Housekeeping

Visual Aid

KanBan

Integration Center

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

THE PLANTHE PLANTHE PLANTHE PLAN

Page 26: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

THE FIVE THE FIVE COMMONCOMMON SSENSEENSETHE FIVE THE FIVE COMMONCOMMON SSENSEENSEThe Principle is: Clean it up, Make it Visual

1.1. SSort – Sort through items and keep only what is needed while disposing of what is not

2.2. SStraighten (orderliness) – “A place for everything and everything in its place”

3.3. SShine (cleanliness) – The cleaning process often acts as form of inspection that esposes abnormal and pre-failure conditions that could hurt quality or cause machine failure

4.4. SStandardize (create rules) – Develop systems and procedures to maintain and monitor the first three SS’s

5.5. SSustain (self-discipline) – Maintaining a stabilized workplace is an ongoing process of continuous improvement

Page 27: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

VISUAL AID & CONTROLVISUAL AID & CONTROLVISUAL AID & CONTROLVISUAL AID & CONTROLThe Principle is: Can our manager/director walk through the shop floor or office, and recognize if standard work or procedures are being followed?

Page 28: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

DON’T PUSH, JUST PULLDON’T PUSH, JUST PULLDON’T PUSH, JUST PULLDON’T PUSH, JUST PULLSMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

The Principle is: From the inspiration of supermarket - Instead of using a system of estimated replenishment, the store restocks only what has been sold, thereby reducing defective inventories.

The KanBan System is the most critical to implement a TPS model.

The more inventory a company has,…the less likely they will have what they need.The more inventory a company has,…the less likely they will have what they need.Taiichi Ohno

Page 29: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

DEVELOPING PEOPLE AND PARTNERSDEVELOPING PEOPLE AND PARTNERSDEVELOPING PEOPLE AND PARTNERSDEVELOPING PEOPLE AND PARTNERS

Floor

Automotive Group

Supplier

CUSTOMER

FOCUS

Page 30: Value Adding Activities - Lean Concepts

Carlos E. DaSilva (978)442 [email protected]

SMART CAR. SMART CAR. SMART PEOPLESMART PEOPLE.. SMART COMPANY. SMART COMPANY.

SUMMARYSUMMARYSUMMARYSUMMARY

“ This is the result of manufacturing science transitions that we have been working on for at least five years”

Bill Guggina – Operations ManagerDelphi Delco Electronics Systems

Kokomo-IN-USA