Chasing Waste

Utilizing 6sigma and Caterpillar Production Systems (CPS) to Achieve Environmental Goals

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Facility Overview
Facility Opened in March 1998 30 Acre Site 183,000 Square Feet Current Active Employees
15 Caterpillar Management 155 Caterpillar Hourly 15 Contract Workers (Maintenance and Chemical Management)

Second Largest Manufacturing Employer in Oxford

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Product Line
The Caterpillar High Performance Extrusions (HPE) Facility manufactures high-pressure hydraulic hose couplings for use with Caterpillar XT hose in all available sizes from 3/8" to 2" in diameter. These couplings are assembled from components that have been machined from near net shape extrusions, or cold-formed steel basics. There are several steps in the process of manufacturing these couplings. These include Annealing, Coating, Extrusion, Machining, and Assembly.

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Tornado February 5, 2008

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Opportunity
Caterpillar looked upon the rebuilding process as an opportunity to make improvements to the facility. Some of those improvements were specifically aimed at improving environmental performance. New energy efficient lighting New energy efficient HVAC units New insulated white roof system Redesigned wastewater treatment system Redesigned chemical storage area

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2009 Environmental Goals and Accomplishments

Goal: 90% recycled material (Year end results 97%) Goal: <12,500 mt CO2 equivalents (Year end results 7,750) Goal: <12.5m gals municipal water (Year end results 6.8m gals)

2010 Environmental Goals

Goal:100% recycled material Goal: <8,500 mt CO2 equivalents Goal: <7.5m gals municipal water used

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6Sigma
Caterpillar launched 6Sigma globally in 2001. 6Sigma methodology is used to focus on real problems. It allows quick results and helps sustain improvements.

DMAIC Process Define How is business impacted? Measure What is the extent of the problem? Analyze What is the root cause? Improve What is the solution? Control Implementation plan

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6Sigma (Reduction of Spent Cleaner- Example)

Define Spent cleaner volumes were too high Measure Drag out and carryover was contaminating cleaner
tanks

Analyze Barrels are not allowed to rotate and drip before

moving to next station

Improve Add dwell time and rotation to programs to allow

excess material to drain before moving to next station

Control Train employees and Implement changes to all

Standard work documents

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Caterpillar Production Systems (CPS)

In 2006 Caterpillar implemented CPS to provide commonality across the various processes CPS consists of three sub systems and fifteen guiding principles
The Operating system is focused on waste elimination using 6Sigma and lean tools. Guiding principles are; Chase Waste, Pull, Make Value Flow, Drive Standard Work,Even the Load, and Validate our processes The Cultural system is focused on making change possible and improving the way we work. Guiding principles are;Put Safety First, Take the Customers View, Go,See,Act, Stop to Fix, Develop People. The Management system is focused on creating measurements and the management structure to support continuous improvement. Guiding principles are; Actively Listen, Make it Visual, Align the Targets, Act Decisively

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8 Wastes

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Caterpillar Production Systems (CPS)

Make it Visual/Align the Targets Communicate goals and post results so that employees can see progress. Make Value Flow - Standardized scheduling and flow at the phosphate coating operation reduced waste from over processing and re-work. Go,See,Act Empower employees to make suggestions and report activities that dont comply with procedures (Continuous Improvement cards). Drive Standard Work - Standard Work created to shutdown boilers and other high energy use equipment during extended shutdown periods. Develop People Establish training program for all employees on waste minimization and recycling program. Validate our Processes Investigation of water usage created 6Sigma project to reduce water consumption through flow restriction and recycling of water.

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Questions? Thank You!

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