Delphi - “Eyes for Waste” & “ Eyes for Flow”

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Text of Delphi - “Eyes for Waste” & “ Eyes for Flow”

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2. Eyes for Waste & Eyes for FlowBrian ONeill General Director, ManufacturingOperations, Delphi Steering December 3, 2004 3. 2003 Revenue * Does Not include Inter-Sector eliminations of ($2.0B) Dynamics, PropulsionThermal& Interior Sector 2003 Sales $14.2 B

  • Engine & EmissionManagement Systems
  • Energy Management Systems
  • Vehicle Dynamics
  • Thermal Management Systems
  • Interiors

Electrical, Electronics,& Safety Sector 2003 Sales $12.9 B

  • Integrated Body Electronics
  • Powertrain Electronics
  • Chassis & Safety Electronics
  • Audio Systems & Mobile Multimedia
  • Safety Systems
  • Electrical & Electronic Systems
  • Product & Service Solutions

Automotive Holdings Group 2003 Sales $3.0 B

  • Generators
  • Instrumentation
  • Other

Enterprise Technologies Sales & Marketing 2003 Sales $28.1 B* Lean Manufacturing 4. Extensive Global Presence As of October 16, 2003 Mexico & South America Manufacturing sites: Employment: Joint ventures: Technical centers: 49 51,000 7 14 Manufacturing sites: Employment: Joint ventures: Technical centers: 47 76,500 9 4 Manufacturing sites: Employment: Joint ventures: Technical centers: 61 49,000 9 10 Asia Pacific Total Delphi Manufacturing sites: Employment: Joint ventures: Technical centers: Manufacturing sites: Employment: Joint ventures: Technical centers: 14 10,000 17 6 171 186,500 42 34 U.S. & Canada Europe & Middle East 5. Customer Breadth Represents only a sample of our customers 6. WhatsLean?Over Short Demand Capacity = $$ $$$ Lean = Minimum Gap TIME Man Machine Material 7. Approach for matching capability through the identification and elimination of Fluctuation Overburden - Waste Mura - Muri - Muda Man - Machine - Material Implement the best possible combination of : focusing on: Standardization & Simplification What How 8. The Lean Journey Time Performance INSTABILITY (No sustainable Improvement) STABILITY (Sustainable Improvement)

  • Get control of quality
  • Get to schedule

9. Lean & Six Sigma= Control of Variation 10. Lean is often Counter Intuitive

  • One piece flow
  • Slowing down operations
  • Small lot containers
  • Training in too large a bucket
  • Overproduction
  • Learn & Do
  • Some systems shield the waste

11. Flow Can Be Deceiving River flow Air flowTraffic flow Information flow Product flow Manufacturing flow Engineering flow Process flow What weseeis not always what is happening 12. Stockroom Variation B E F O R E A F T E R 13. ChangeoverVariation B E F O R E A F T E R Bolts increase the time of change Quick change devices implemented 14. Workplace Variation Original container from supplier B E F O R E A F T E R 15. Scheduling Variation B E F O R E A F T E R Chasing critical production requirements Build to Order/Level Scheduling Board 16. Cycle Time Variation 17. Waste Stream Variation B E F O R E A F T E R 18. Uptime Variation

  • High Maintenance
  • High Utility Cost
  • Permanent Sump
  • Investment $125,000
  • Commercial washers
  • Investment$700

B E F O R E A F T E R 19. Labeling Variation

    • Must improve System Integration between :
    • Quality Control
    • Engineering
    • Manufacturing

20. Operator Instruction Variation Helpful NotesOr Standard Work 21. Step 1.Select Focus Cost Reduction Focus ? Regional Focus ? DevelopmentFocus ? 22. Step 2.Select Metrics FTQ Warranty Scrap 23. Step 3: Analyze for Leverage % Normalized Weighted Sum 24. Hypothetical Example Lets look at thisthree-step process using a product quality example 25. Step 1: Select Metrics 26. Step 2:Determine Importance

  • Customer is King Weighting:
    • 3X for Customer Shutdown
    • 2X for Customer Complaints & Warranty
    • 1X for Plant Performance Metrics :
    • First Time Quality
    • Supplier Complaints
    • Inspection
    • Scrap

27. Step 3: Analyze for Leverage

  • Determine weighting on metrics
  • Normalize each metric
  • Multiply by weighting
  • Add the resulting values by failure type

28. Normalized Weighted Sum 29. Look for leverage by grouping common failures Boxes are all Switch A failures 30. Look for leverage by grouping common failures Boxes are all Wrong or Missing parts 31. Stacked Bar Pareto by common failure 0 0.5 1 1.5 2 2.5 3 3.5 Switch A Failure Wrong/Missing Parts Switch D Defect Switch B Failure Lever Defect Switch C Defect Noise Normalized Score Scrap $ Online Inspection Supplier Complaints FTQ Warranty $ Warranty Incidents % Customer B Complaints Customer Shut Down 32. Stacked Bar Pareto by common event 0 1 2 3 4 5 6 7 All SwitchFailures Wrong/Missing Parts Lever Defect Noise Normalized Score Scrap $ Online Inspection Supplier Complaints FTQ Warranty $ Warranty Incidents % Customer B Complaints Customer Shut Down 33. Normalized Weighted Sum% Production losses Can be used where diverse metrics exist 34. Summary

  • Lean and Six Sigma both reduce variation
  • You must know a problem exists to solve it
    • DevelopEyes for Flow and Eyes for Waste
    • Make regular observations
    • Observed Normal vs. Abnormal activity
    • Establish standardized work
    • Make interruptions in flow visible ( small lot )
  • Learn to see thru database smog using
    • Select Focus
    • Select Metrics
    • Analyze for leverage
    • Apply the appropriate problem solving tool

Normalized WeightedSum 35.