Managing Complexity
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Transcript of Managing Complexity
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Sam Wagner, Director of Advanced ManufacturingDonnelly Custom Manufacturing Company
IndustryWeek ’09 Best Plants ConferenceNashville, TN
Tuesday, April 28, 2009
Managing Manufacturing Complexity through Innovative Processes
A Donnelly Custom Manufacturing Case Study
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The Donnelly story
• Donnelly was founded in 1984 as a custom, plastic injection molding company
• A small, one-story building in Alexandria, MN• Four presses, eight people, no customers• One idea: to focus on short run, close tolerance parts
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The Donnelly story
• Today, the organization is over 225 people strong– Best-in-class technologies and quality systems– 24/7 operations, 110,000 square foot facility with 33 presses– 700+ materials used– 2700+ active molds and 3200+ active parts– Median run time of less than 8 hours– 40 to 50 changeovers per day– Industry-leading and world-renowned OEM customers – $29+ million in revenues
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The Donnelly story
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The Donnelly story
• Plastics News Processor of the Year Finalist 2007
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What is short run?
• Short run is not defined by part quantities/EAUs
• Short run is defined by the number of hours per production run
• Donnelly’s short run– Average production run is 11 hours– Median production run is 7+ hours– Production runs range from .25 to 240 hours– Short run is defined as more than one changeover
per week, per press– We average 9 changeovers per week, per press
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Why short run?
• It is not possible to do short and long run well– Short run focus is on changeover optimization– Long run focus is on process optimization
• A need exists for a supplier committed to short run expertise– Pressure to reduce inventory, but continue to meet
stringent delivery dates– A supplier with short run expertise allows these
vital needs to be met economically
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Donnelly’s mission and values
• Vision: To be the recognized leader in setting the standards in short run molding and related services
• Mission: To deliver good products on time• Core values
– Do your best– Treat others the way you want to be treated– Don’t be afraid to ask for help– Always work as a team
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Donnelly’s complexity factor
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• Complexity factor = active molds x materials used x presses
• Comparative data– Plante Moran’s 2004 North
American Study of the Plastics Molding Industry
Bottom quartile
50th percentile
Upper quartile
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Complexity-driven challenges
• Setting and holding priorities – making decisions
• Shooting at a moving target – planning
• Communication, alignment and teamwork
• Training and continuous improvement
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Addressing the complexity factor
Complexity
• Peer accountability– Manufacturing War Room– Visual Management
• Attention to detail– Checklists– Supervisor Audits– Team Leader audits– Pricing Volatility
• Process orientation with measurements– Manufacturing Launch (40 measures)– Critical Success Factors
(12 key measures – 30 elements)
• Constancy of purpose– Short Run– Quality Management System (incl. MRT)– Lean Manufacturing Techniques– Training & Workforce Development
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Addressing the complexity factor
• The cosmic Law of Nature– Nothing is static
Prog
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Regressing
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Process orientation with measurements
• Manufacturing launch process– Developed in 1999
• Hard work & diligence wasn’t enough with 250+ molds/year
– 80 % of tooling launches will have no problem, but it is the 20 % that a highly defined process allows you to succeed at
– Defined, comprehensive and measured so output is repeatable, reliable and profitable
– Avoids the finger pointing at hand-offs • Responsibilities are defined and reviewable
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Process orientation with measurements
• Manufacturing launch process– Owned by the people who hold responsibility– Result is unique 3-pronged engineering model
• Project Engineer on-site at customer location for design and mold-build support
• Manufacturing Launch Engineer who oversees sampling, measurement and approval process
• Process Engineer for day-to-day production
– Value of a highly defined process is that you can evaluate and change it
• Manage, measure and improve it
Donnelly Manufacturing Launch Process(2)
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Peer accountability
• Daily War Room meetings– This is a problem identification, not problem solving meeting
– Action items are assigned with peer accountability to resolve them within 48 hours
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Peer accountability
Review last 24 hours• Safety• Changeovers & efficiency• Hours run & efficiency• Down time• Scrap• Problem jobs• Action items
Look ahead to the next 24 hours• Set priorities• “At risk” shipments• High scrap jobs• Mold issues
• Daily War Room meetings
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Constancy of purpose
• Donnelly quality system– Deliver good products on time
– ISO 9001:2000
– ISO 13485:2003
• Management Review Team– Corrective action process
RCAWhy was the defective partproduced?
Why was the defective partshipped?
What other parts mighthave this same issue?
Corrective Action Process
Management Review Team
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Constancy of purpose
• The Law of Prosperity/ Law of Compensation– What we make is in
direct proportion to the quality and quantity of the services we deliver
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Constancy of purpose• Results
– Value added per employee
– 14 years without increasing press rates
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Attention to detail• 5S
– Sort: Separate the necessary from the unnecessary– Set in Order: Put everything in its place, label its place– Shine: Keep everything clean, helps identify potential
problems– Standardize: Defines how a task should be performed, sets
the performance standard – Sustain: Most important – requires regular inspections, with
action items identified, assigned, and addressed
“Good factories develop beginning with the 5S’s. Bad factories fall apart beginning with the 5S’s.” Hirouki Hirano
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Attention to detail• Early 5S process results
Old Setup Carts New Setup Carts
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Attention to detail• 5S event results – set in order
Aisles before 5S Aisles after 5S
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Attention to detail• 5S color coding
Green White and blue
Finished goods or inserts Trash Mobile Eqpt
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Attention to detail
• 5S: Middle section: Green– Notice the numbers on
the wall and on equipment (204)
– Numbers on the floor as well
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Attention to detail• 5S: Back section: Orange
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Attention to detail• 5S audit process
– Next shift team leader audits section with current shift team leader
– Record results on current shift schedule showing assignments
– Highlight in green if OK, pink if a problem with notes on the bottom
– Hang schedule on current shift clip board for supervisor to review
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Attention to detail
• 5S process benefits– Much more than just housekeeping– Develops the discipline to follow through– Teaches employees to work in teams– Creates a safer workplace– Attacks quality issues– Attacks waste of searching for things– Clean workplace is more inviting, making it easier
to recruit and retain workers (and customers)– 5S is a fundamental to Lean
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Attention to detail• 5S: Visual workplace progression
Visual Order
Visual Standards
Visual Measures
Visual Controls
Visual Guarantees
Ref. Visual Workplace Visual Thinking, Gwendolyn D. Galsworth
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Success in short run
• Continuously develop and improve upon its leadership position in short run
• Occurs as a result of aligning company’s people, processes and actions with business strategy
• Donnelly employees’ ability to improve upon its hedgehog concept, help the company to grow and thrive
• All actions are tied to processes rather than events, ensuring the business output is repeatable, reliable and profitable
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Sam Wagner, Director of Advanced ManufacturingDonnelly Custom Manufacturing Company
IndustryWeek ’09 Best Plants ConferenceNashville, TN
Tuesday, April 28, 2009
Thank you
Questions?