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

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<ul><li> 1. </li></ul> <p> 2. Eyes for Waste &amp; 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&amp; Interior Sector 2003 Sales $14.2 B </p> <ul><li>Engine &amp; EmissionManagement Systems </li></ul> <ul><li>Energy Management Systems </li></ul> <ul><li>Vehicle Dynamics </li></ul> <ul><li>Thermal Management Systems </li></ul> <ul><li>Interiors </li></ul> <p>Electrical, Electronics,&amp; Safety Sector 2003 Sales $12.9 B </p> <ul><li>Integrated Body Electronics </li></ul> <ul><li>Powertrain Electronics </li></ul> <ul><li>Chassis &amp; Safety Electronics </li></ul> <ul><li>Audio Systems &amp; Mobile Multimedia </li></ul> <ul><li>Safety Systems</li></ul> <ul><li>Electrical &amp; Electronic Systems </li></ul> <ul><li>Product &amp; Service Solutions </li></ul> <p>Automotive Holdings Group 2003 Sales $3.0 B </p> <ul><li>Generators </li></ul> <ul><li>Instrumentation </li></ul> <ul><li>Other </li></ul> <p>Enterprise Technologies Sales &amp; Marketing 2003 Sales $28.1 B* Lean Manufacturing 4. Extensive Global Presence As of October 16, 2003 Mexico &amp; 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. &amp; Canada Europe &amp; 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 &amp; Simplification What How 8. The Lean Journey Time Performance INSTABILITY (No sustainable Improvement) STABILITY (Sustainable Improvement) </p> <ul><li>Get control of quality </li></ul> <ul><li>Get to schedule </li></ul> <p> 9. Lean &amp; Six Sigma= Control of Variation 10. Lean is often Counter Intuitive </p> <ul><li>One piece flow </li></ul> <ul><li>Slowing down operations </li></ul> <ul><li>Small lot containers </li></ul> <ul><li>Training in too large a bucket </li></ul> <ul><li>Overproduction </li></ul> <ul><li>Learn &amp; Do</li></ul> <ul><li>Some systems shield the waste </li></ul> <p> 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 </p> <ul><li>High Maintenance </li></ul> <ul><li>High Utility Cost </li></ul> <ul><li>Permanent Sump</li></ul> <ul><li>Investment $125,000 </li></ul> <ul><li>Commercial washers</li></ul> <ul><li>Investment$700 </li></ul> <p>B E F O R E A F T E R 19. Labeling Variation </p> <ul><li><ul><li>Must improve System Integration between : </li></ul></li></ul> <ul><li><ul><li>Quality Control </li></ul></li></ul> <ul><li><ul><li>Engineering </li></ul></li></ul> <ul><li><ul><li>Manufacturing </li></ul></li></ul> <p> 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 </p> <ul><li> Customer is King Weighting: </li></ul> <ul><li><ul><li>3X for Customer Shutdown </li></ul></li></ul> <ul><li><ul><li>2X for Customer Complaints &amp; Warranty </li></ul></li></ul> <ul><li><ul><li>1X for Plant Performance Metrics : </li></ul></li></ul> <ul><li><ul><li>First Time Quality </li></ul></li></ul> <ul><li><ul><li>Supplier Complaints </li></ul></li></ul> <ul><li><ul><li>Inspection </li></ul></li></ul> <ul><li><ul><li>Scrap </li></ul></li></ul> <p> 27. Step 3: Analyze for Leverage </p> <ul><li>Determine weighting on metrics </li></ul> <ul><li>Normalize each metric </li></ul> <ul><li>Multiply by weighting </li></ul> <ul><li>Add the resulting values by failure type </li></ul> <p> 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 </p> <ul><li>Lean and Six Sigma both reduce variation </li></ul> <ul><li>You must know a problem exists to solve it </li></ul> <ul><li><ul><li>DevelopEyes for Flow and Eyes for Waste </li></ul></li></ul> <ul><li><ul><li>Make regular observations</li></ul></li></ul> <ul><li><ul><li>Observed Normal vs. Abnormal activity</li></ul></li></ul> <ul><li><ul><li>Establish standardized work</li></ul></li></ul> <ul><li><ul><li>Make interruptions in flow visible ( small lot ) </li></ul></li></ul> <ul><li>Learn to see thru database smog using </li></ul> <ul><li><ul><li>Select Focus </li></ul></li></ul> <ul><li><ul><li>Select Metrics </li></ul></li></ul> <ul><li><ul><li>Analyze for leverage </li></ul></li></ul> <ul><li><ul><li>Apply the appropriate problem solving tool </li></ul></li></ul> <p>Normalized WeightedSum 35. </p>