Lean Conversion 2009 - ASQ Granite State Section 0104 - …Collision... · Lean Conversion 2009 ......

Grappone Collision CenterLean Conversion

2009

Photo reproduced with permission of Scott Marshall

WHY TOYOTA’S

“THINKING

PRODUCTION SYSTEM”

(TPS)?

Why TPS?

• Our daily tasks involved more stress than productive work

• No standardization of tasks

• Nebulous definition of quality

• Heavy reliance on just the right person who can fight fires

• Grappone customer expectations not being metIn a nutshell: long hours, mad customers, poor

quality (though we were making lots of money!)

Why TPS?

• The “Respect for Humanity” system

• The fifth generation: a long-term solution

• Improving others’ processes (i.e., vendors)

• Commitment to bettering society

Grappone’s Lean Journey

• 2007

Exposed to concepts of “lean manufacturing” through industry conferences – research begins. Purchase The Toyota Way and The Toyota Way Fieldbook. Become hooked.

• 2008

May: Attend Baldridge/Lean conference, hosted by Granite State Quality Council.

December: Formally engage NHMEP to train us on the fundamentals of lean. Secure grant from State of NH to pay for half of all costs.

Grappone’s Lean Journey

• 2009January: Introduce basic TPS concepts and commonly used phrases to all staff

Feb 21st: Lean 101 with NHMEP and entire team (full day)

March 1: Convert all flat rate personnel to salary based on prior 12 months’ performance

March: Value Stream Mapping events with team (several days)

April 4th & 5th: Kaizen event in shop

April 17th: Tour Marshall Auto Body with DuPont Business Council group

April 18th: Start begging Aaron Marshall to help convert our shop based on the principles

of Toyota’s “Thinking Production System” (TPS)

May 20: Aaron and Scott come to NH to see if we have what it takes

June 10: Fly seven staff to Aaron’s shop in Wisconsin for tour

June 15-19: Convert shop with Aaron, Scott, and their two lead Technicians, Mike & Jeff

Late June: Discuss with MEP how to keep them involved, if at all

June 20th – infinity: Continuous improvement and total waste elimination

August 3-5: Marshalls come for follow up visit and to help establish admin. flow in office

The traditional body shop in the United States

Grappone Collision – A Traditional

Body Shop

• Production system:

– Technicians own the Job –shops within the shop

• Independently responsible for quality and time management but….

• Interdependent upon limited resources

–Paint booth

–Frame machines

–Use of Admin.

© Marshall Services 2009

Our Shop Before Marshalls’ Arrival

Without a plan, it was every man for himself. Whoever could get to the frame

machine or spray booth first won!



Body Shop

• Commission Pay structure -

– Techs. in business for themselves

– Negotiate bottlenecks, solve problems or no check

• Lots of deal making

– Oversimplified view of management

• Primary objective: Keeping ourselves “productive”

– While the customer [car] sits in queues



Body Shop

• Process is doomed from the start

– “Parking Lot Estimate”

• Creates waste downstream

– Supplements

–Parts returns

• Commitments are made : Time & $$

– Impossible to keep

• Constant firefighting



Body Shop

• Push System: in on Monday, out on Friday

– Need plenty of work “to keep busy”

– Completely asynchronous:

• Large batches pushed through constrained

processes

–Admin. - supplements

–Paint Department

–Cleanup & Detail

–Customer pick up - rushed



Body Shop• Resource Demand: REFINISH, OFFICE, BODY TECHS

Overload

Underutilized

Balanced

Monday Tuesday Wednesday Thursday Friday



Body Shop

• Quality?: Techs. work for themselves

– Maintain own standards

– “Having to do it over for free” – Incentive to DRTFT?

– High comeback rate >10%

• Improvement?: Localized

– No way to trace effect on overall system performance

– No standard, no stability, no framework to sustain

– Mostly look for cost savings



Body Shop

• Office / Admin.

– Causing the problems, or saving the day?

• Setup, estimate, promise dates

– Reacts to Production

• Breeds firemen

• Always one step behind – unrecoverable A/R


Grappone Collision – A Traditional Body Shop

• The Result? : A lot of Waste

– Ave job = 18 hours, ave. cycle time = 9 days

– Overproduction (bottleneck at the paint booth)

– Inventory (caused by above, and, needed to stay busy)

– Rework (supplements, parts exchanges, comebacks)

– Movement – car travels 1.4 miles in a 10,000 sq ft shop

– Motion – Employee travels 2 miles a day.

• Going to office with new problems, checking up on old

ones

• Looking for misplaced and run out material

• Traveling to re-acquisition shared tools

• Nothing really ever where it’s “supposed to be”



Hey, I’ve been looking for that!

Grappone Collision – A Traditional Body Shop

– Waiting…

• For the overproduction from the body shop to get

painted

• For Admin. to get more parts, or the “right” parts

• Car sitting in queue waiting to come into shop

• Etc.

– Over processing – (lack of standards tied to customer perception of value)

– Friction – Internal & External



Vehicles waiting to be brought in for work by individual Technicians- which car is in what phase of repair? Are the right parts here? Who knows?


Something has to be done

False Start – April 2009

• Understood the theory but NOT how to deploy it

• Our plan went awry (too many cooks in the kitchen)

• No plan to account for extreme variability in types of jobs we perform

• No Heijunka (leveling work) dictated by takt times

• No functional interdependence to establish where constraints were

• No method to exploit constraints had they been identified

• Off flat rate, but “team” attitude was lacking – not 100% buy in by staff

PREP

REFINISH

DISMANTLEBUILD DOWNBODYWORKPRIMEASSEMBLY








THE FIRST ATTEMPT

Saved by the Marshalls

Implementation

• Make the work environment into a system (tool) for

facilitating measurable, continuous improvement.

• Understand the Voice of the Customer – subordinate

“what we do” to this.


Implementation

• Isolate “Value add” operations from current way, measure how long they take.

– Exclude wasted motion, transportation, rework

– Other wastes may be too hard to see and subtract at

this time

• Calculate a Pace - takt time of market demand

– Product mix : Speed, Small, Medium, Heavy

– 5 per day, 8 hour window


Implementation

• Smooth output to takt time

– One every 96 minutes instead of all on Friday

• Standardize:

– What tasks are going to be done & where?

– How the work is going to be done:

• Posted, simple, best practices we know today

– Do work only where and when it can be done 100% completely, and correctly

– To insure quality within the available window of time


Implementation

• Create continuous flow of interdependent tasks balanced to the pace of the market (takt time)

– Bodywork

– Painting

– Reassembly

– Cleanup

• Support flow with pull, when variability too high

– Repair Planning (create blueprint for repair)

– Insurance authorization / parts procurement

– Variability reduction dept. (make all jobs same size)


Implementation• Chain flow process together to surface problems, to demonstrate waste

– Continuously measure

– Find and fix weakest link, (only one “slowest”)

• Develop problem solving process:

– Consistent measurement, Kaizen

– This, after all, is why we built it

• Run the Program – Get To Work!

• Stabilize, Maintain© Marshall Services 2009

Day One – Laying the Groundwork



New parts and R&I parts often stored in the car

Photos reproduced with permission of Scott Marshall

Our Shop After Implementation

All parts stored on carts – cart travels

with job throughout production



Fairly clean & organized but no flow. Once inside, it was hard for cars to move through, move out.



Defined work spaces: “looks less busy”, but more actual work gets done.



Parking lot is now a component of the “Visual Management System”



The Parts Department: all the car’s parts are here. Somewhere. They may be damaged, but we’ll deal with that when we’re putting the car

back together…Photo reproduced with permission of Scott Marshall


A standardized cart for each job; only new parts and R&I parts go out to Production.



Look, we have our own paint store!Photo reproduced with permission of Scott Marshall

Our Shop After implementation

We have plenty of materials – take some more!

Mab cabinet picture

PREP

REFINISH









BEFORE

START

END

BODYWORK

PRIME

PREP

REFINISH

ASSEMBLE

CLEANUP

REPAIR PLANNING

BUILD DOWN


AFTER

HeijunkaHeijunka

� Resource Demand: REFINISH, OFFICE, BODY TECHS

Overload

Underutilization

Balanced

Monday Tuesday Wednesday Thursday Friday

The Week – Admin.

Get all of the work hidden in drawers up

on the wall


The Week – 5S. Again.


The Week – Learn Repair Planning


The Week – Build Parts Procurement

Process


The Week – Laying Out the “Visual

Management System”


Throughout the Week –

Creating Kanban Signals


Throughout the Week

Standard work posted in each

bay – a starting

point


The Old Shop


The New Shop

Some Early Challenges

• Understanding what it takes to level - Heijunka

• Understanding the market demand / Scheduling

• Personnel challenges– Everything matters – It’s all tied together now

– You can’t hide in this system

– Attacking the process, not the person

– Attitudes

– Natural response to change

– Some tasks, and the positions managing them, have become obsolete

Some Early Challenges

• System works “too well” at uncovering problems– Which ones to fix first????– Saturation – seems like everything needs to be fixed at once

• Single piece flow…why can’t I move this car forward so we can make a sale?

• Fiscal – Former flat-rate staff now have a guaranteed paycheck based on what they had been producing; when sales are off by $70,000 this does not bode well for the bottom line

• Not getting hung up on profitability

There’s work to be done…

Continuous Improvement

Moe’s light signaling system (now labeled) to communicate the status of

vehicles in prime, prep., and the spray booth

Continuous (fun) Improvement

Thoughts From the Staff

“I don’t have to stay until 7:00 on Fridays anymore.” – Bob, Wash Bay

“There’s no more chaos.” – Johnny, Production Team Leader

“From the Paint Department’s perspective, we don’t have to re-do things like we used to…we have time to read the work orders now.” –Jeremy, Painter

“We have a lot more room to work.” – Niles, Body

“It isn’t perfect yet, but we have way fewer phone calls from people looking to get updates.” – Carol, CSR

“The way we’re scheduling now is so much better than it used to be. I can’t believe we ever did it the old way.” – Mark, CSR

“Getting those parts carts was the best thing we did.” – George, Parts

“I had a chance to work in reassembly and RP does a much better job of taking a car apart and bagging and labeling everything.” – Jim, Body

Grappone Collision Center

Lean Conversion

2009

Lean Conversion 2009 - ASQ Granite State Section 0104 - …Collision... · Lean Conversion 2009 ......

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