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Rhode Island Value Stream Presentation & Walkthrough03/19/2019

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Value Stream Presentation & Walkthrough 03/19/2019

1. Planning2. Learning3. Implementation4. Sustainment5. Achievements

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Rhode Island Value Stream Team

From Left to Right: Mike Sitkin, Matt Williams, Charlie Hanley, Gary Viera, Gary Kloss, Matt Fischer, Miguel Ventura,Fred Perrin, John Petrarca, Todd Mackey

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KAIZEN GOAL:Establish connected flow through the truck upfit process in order to increase velocity and reduce waste.

UPFIT PRODUCTS:• Service Bodies, Platforms, Landscapers, & Dump Bodies

Truck Equipment Value Stream -PlanningPlanning: Goal

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PROCESS MAP BEFORE KAIZEN:• Too many scheduling points! At least 6 – which takes more labor to coordinate and track

progress in each work area (prebuild, sand, paint, and final.) Usually a need for status code tracking is then implemented which adds additional labor to the build by punching in and out of jobs.

• Work in Process builds between work areas when work is not balanced and work areas are scheduled independently.

• Excess work in process takes up room in the yard, increased movement of materials and risk for damage, and becomes more difficult to control adding cost to the business.

Before Kaizen – January 4, 2019Truck Equipment Value Stream -Planning

Hitch Build1 Bay

Hoist to Body2 Bays

Sand4 Bays

Paint4 Bays

Pre-Detail2 Bays

Final4 Bays

WIP WIP WIP

WIP WIP

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• Dump and Service Bodies make up the highest volume of upfits in 2018.

• High percentage of upfits use same processes from beginning to end.

• Data represents dealer and retail sales which averages to 6 bodies per day.

• TAKT is the pace that one vehicle must “drive” out of the bay door complete in order to meet the total customer demand for the day. It is calculated by taking the available time to work on a vehicle divided by the number of vehicles needed in one day.

Customer Demand DataTruck Equipment Value Stream -Planning

TAKT = 435 min./ 6TAKT = 73 min.

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Cycle Time Bar ChartTruck Equipment Value Stream -Planning

Takt, 73

0

50

100

150

200

250

300

350

Hitch Build BodyPrebuild

Hoist toBody

Sand Paint Pre Detail Detail Install

Cyc

le T

ime

(Min

utes

)

Cycle Time Bar Chart

Waiting time caused by improper balance

of work tasks

Too many work steps cause bottlenecks

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Timeline & MetricsTruck Equipment Value Stream -Planning

Action Item Due DateEstablish team and create high level plan 12/12/18

Intensive line lead training 1/07/19

Time observations dump body 1/14/19

Standard work training, develop, create line layout 1/21/19

Time observations service body 1/28/19

Standard work, develop, service body 2/04/19

Time observations landscape body 2/11/19

Standard work, develop, landscape body 2/18/19

Time observations flatbed 2/25/19

Move line layout to facilitate one by one flow 3/4/19

Train MDI, develop SQDC to measure and adjust 3/4/19

Sustainment line support response team 3/11/19

Report out and celebration 3/19/19

Action Item Before After %

Safety (Improvements) 0

Quality (First Pass Yield from QC Insp Checklist)

Delivery (Production Lead Time - Days) 8

Hours per Unit (HPU) 26.1

Space Utilization (Work Bay) 17

Inventory (StandardWork in Process -SWIP)

~10 (varies)

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Table of Contents1. Planning2. Learning3. Implementation4. Sustainment5. Achievements

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GOAL:Create a deep understanding of DDMS and learn how to apply lean tools in order to achieve the Kaizen goal.

DDMS PRINCIPLES:• Understand our Customer(s)• Seek Out the Data• Be Creative and Curious• Simplify the Process• Work as a Team, Win as a Team

Truck Equipment Value Stream -LearningLearning: Goal

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Truck Equipment Value Stream -LearningCurrent State vs. Future State

USING WATER FLOW TO ILLUSTRATE CURRENT VS. FUTURE STATE TRUCK UPFIT FLOW

PREBUILD

PREBUILD WIPSANDING

SANDINGWIP PAINT

BOOTH 1PAINT BOOTH 2

DETAIL/FINAL

VS.

The river is flowing, but in all different directions. SWIP builds or pools using more land There can be hidden surprises

One way in and out Space is controlled A surprise will stop the flow! Water out is same speed as its poured in

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Standard work defines the interaction of operators and their work area when upfitting a vehicle. It details the order of the steps along with the movements of the operator.

ELEMENTS OF STANDARD WORK:• TAKT Time• Operator Cycle Time• Standard Work in Process• Standard Work Layout

Truck Equipment Value Stream -LearningStandard Work

Standard work provides us with a basis for improvement and highlights abnormality.

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Truck Equipment Value Stream -LearningUnderstand

No. Process Step DescriptionLowest or Repeatable

TimeAdjust-ment

Adjusted Elemental

Time

Time Observation FormJob Number: DS17029 Process: 9' 2-3 yrd. Operator: Austin Prepared By: Matt W. & John P.

Dealer: Dover Auto World Department: Detail TAKT Time: Date: 1/11/2019Make: Chevy Model: 3500 Gas

Process Cycle

Break Point 1 Observations

1 Grab paperwork, punch into the job, & Grab mudflaps Return tools to toolbox 0:00:00 Walking to Punch in & get mudflaps0:00:57

2 Prestage Area Leave toolbox 0:01:12 Walking to grab hardware 0:02:09

3 Make Body up Harness Return tools to toolbox 0:03:20 Walking to get loom & wire0:05:29

4 Install Body up light & switch Return tools to toolbox 0:19:01 Pull Apart Dash, could be done same time as controller install ?0:24:30

5 Install Mudflaps Leave toolbox 0:02:37 * No Diamond Plate 0:27:07

6 Final Wiring of Rear end Return tools to toolbox 0:10:31 Walking for Materials 0:37:38

7 Install Cab Stickers & Inspect Work Grab Paperwork 0:03:110:40:49

8 Fill out Paperwork & Punch out of Job Paperwork on Dash 0:01:160:42:05

As a team we sought out to…• Calculate takt time• Observe the work and identify process

improvements.• Calculate staffing requirements• Balance the work steps.• Test our hypotheses.

• Fill out form heading• Talk with operators• Establish process steps• Make observations, take notes• Use continuous timing • Record movements• Record order information

No. Process Step Description 1 2 3 Lowest Repeatable Adjustment Adjusted

Elemental Time1 Grab paperwork, punch into the job, & Grab mudflaps 0:00:57 0:01:08 0:00:48 0:00:48 0:00:482 Prestage Area 0:01:12 0:02:14 0:01:57 0:01:12 0:01:123 Make Body up Harness 0:03:20 0:04:09 0:03:27 0:03:20 0:03:204 Install Body up light & switch 0:19:01 0:17:03 0:17:18 0:17:03 0:17:035 Install Mudflaps 0:02:37 0:06:13 0:06:30 0:06:13 0:06:136 Final Wiring of Rear end 0:10:31 0:06:59 0:07:34 0:06:59 0:06:597 Install Cab Stickers & Inspect Work 0:03:11 0:02:19 0:02:26 0:02:19 0:02:198 Fill out Paperwork & Punch out of Job 0:01:16 0:01:01 0:01:23 0:01:01 0:01:01

Sum of process steps (Overall Cycle Time): 0:42:05 0:41:06 0:41:23 0:38:55 0:38:55

Lowest Repeatable Overall Time - Lowest Observed Time: 0:02:11 < Adjustment Time

• Make multiple observations

• Use a repeatable time

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Table of Contents1. Planning2. Learning3. Implementation4. Sustainment5. Achievements

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GOAL:Use data and process improvements to create a continuous flow line.

7 Ways – Layout Exercise:

Truck Equipment Value Stream - ImplementationImplementation: Goal

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Truck Equipment Value Stream - ImplementationIdea Trystorming

Moving carts & bodies to test different layout proposals for space.

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Truck Equipment Value Stream - ImplementationIdea Trystorming

Testing the turning radius of forklifts w/ bodies being delivered in layout.

Create different parts delivery carts to the point of use.

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Truck Equipment Value Stream - ImplementationIdea Trystorming

Final layout before paint booth using only dump bodies with all standard work in process in place (SWIP).

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Truck Equipment Value Stream - ImplementationIdea Trystorming

Final layout AFTER paint booth.

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Table of Contents1. Planning2. Learning3. Implementation4. Sustainment5. Achievements

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GOAL:Setup KPI board to capture data in order to eliminate abnormalities that prevent achievement of takt.

Truck Equipment Value Stream - SustainmentSustainment: Goal

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Truck Equipment Value Stream - SustainmentBalanced Work

0102030405060708090

100

BodyPrebuild

HitchWipedown

4 Sanders 2 Painters Pre Detail Final Detail Install

Cyc

le T

ime

(Min

utes

)

Cycle Time Bar Chart

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Truck Equipment Value Stream - SustainmentDaily Management

• Team is collecting data hourly by using the Performance to Takt Job Board

• Data is then captured using a trend chart by day to summarize changes in the month

• Abnormality data is being collected and summarized using a Pareto chart

• A daily meeting is being conducted to communicate results of the SQDC

• Improvements in tooling, fixtures are being evaluated and introduced to the workstations over time

• Communicate with the team that things will be worse before they get better. This is a natural path for change. Through problem solving we will fix issues that have always been there and the line will run more smoothly!

Action Item Before After %

Safety (Improvements) 0 6 In progress

Quality (First Pass Yield from QC Insp Checklist) Not tracked

Delivery (Production Lead Time - Days) 8 3 60%

Hours per Unit (HPU) 26.1 15.1 42%

Space Utilization (Work Bay) 17 7 58%

Inventory (Standard Work in Process - SWIP) ~10 (varies) 3 70%

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Truck Equipment Value Stream - SustainmentDaily Management – Takt Job Board

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Truck Equipment Value Stream - SustainmentFuture State

• Putting signals in place will encourage and expedite abnormality response vs. searching and leaving the workstation.

• Collecting additional data to better understand and plan for options that increase cycle time above takt for certain operators.

• Use synchronized count down timers to assist in creating a rhythm or cadence to the workflow.

• Modify existing paint booth to reduce WIP, create better work balance, and reduce complexity of scheduling mixed models.

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Truck Equipment Value Stream - AchievementsVSU Line Achievement Talking Points

• 143 units qualified & introduced into the pipeline

• 63 units delivered

• Average built time improvement: -7.7hrs• Average GP% improvement over quote: +6.6%• Average rolling GP%: 40%• Schedule to build lead time reduction from: 8 days

to 2 days.