Companion Line

Kaizen Event

www.wyrickenterprises.com

949-461-0279

Lean & Six Sigma Integration Specialists

Companion Line Flow
LOT SIZE RULE Make One Move One

INDIVIDUAL EFFICIENCY VS. SYSTEM EFFICIENCY
We are committed to overall system efficiency rather than just the
www.wyrickenterprises.com

efficiency of individual processes. 949-461-0279

We are a TEAM!

Lean & Six Sigma Integration Specialists

Kaizen Mandate
Eliminate waste Create a more efficient layout Implement and sustain 5S Create a tracking and reporting system

www.wyrickenterprises.com

949-461-0279

Lean & Six Sigma Integration Specialists

Project Scope
5S the work area Redesign the work area
Flow and flexibility Visual workspace, point of use tools Cost effective

Define/implement min/max inventory levels Eliminate waste Create Communications Board with measures Document Non-conformance issues Standardize work (SOP)
www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

Kaizen Deliverables
Creating Shorter, Simpler and Smoother Processes

Establish ground rules Create a team charter
(scope, boundaries, expectations, deliverables, ROI)

Develop a current state map Identify necessary data, people, resources Determine Metrics and Indicators Incorporate data and metrics into current state map
www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

Kaizen Deliverables
Creating Shorter, Simpler and Smoother Processes

Create detailed future state map Perform Gap analysis Assign teams for immediate process changes Assign teams for long term system changes Implement immediate changes Document and quantify improvements Create time-lines and follow-through plans Prepare and present report-out
www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

Lean in Action

www.wyrickenterprises.com

949-461-0279

Lean & Six Sigma Integration Specialists

Lean in Action

www.wyrickenterprises.com

949-461-0279

Lean & Six Sigma Integration Specialists

Old Layout of Work Area

www.wyrickenterprises.com

949-461-0279

Lean & Six Sigma Integration Specialists

Old Process Flow Map

www.wyrickenterprises.com

949-461-0279

Lean & Six Sigma Integration Specialists

Original Spaghetti Diagram 1
Pull Order Flow

www.wyrickenterprises.com

949-461-0279

Lean & Six Sigma Integration Specialists

Original Spaghetti Diagram 3
Companion Unit Flow

www.wyrickenterprises.com

949-461-0279

Lean & Six Sigma Integration Specialists

Original Time and Distance
Total Time = 2253 min Total Distance = 8908 ft Total VA Time = 690 min Total Steps = 54 Total VA Steps = 19

www.wyrickenterprises.com

949-461-0279

Lean & Six Sigma Integration Specialists

BEFORE Pictures

www.wyrickenterprises.com

949-461-0279

Lean & Six Sigma Integration Specialists

BEFORE Pictures

www.wyrickenterprises.com

949-461-0279

Lean & Six Sigma Integration Specialists

BEFORE Pictures

www.wyrickenterprises.com

949-461-0279

Lean & Six Sigma Integration Specialists

Non-Conformance
Service Calls 2 Methods to Resolve
Phone 3rd party service provider @ $95/hour

Average Service Call = $800 Total Companion Service Calls = 756 Total Cost of Service Calls = $604,800 16 Out of Box Failures
www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

Non-Conformance
Companion PARs and Deviations
59 PARs since March 2003 45 Deviations in last 3 months Estimated cost of $100 per deviation Cost of deviations last 3 months = $4,500 Companion communicator spends 8 hours per week sorting and tracking documentation for the area
www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

Non-Conformance
Companion Rework
Time/Labor Cost
67% of rework time is due to engineering changes 25% is due to bad parts Cost for week of June 13, 2005 = $2,800 Annual Cost = $145,600

Vendor errors
(vendor errors of fabricated items are generally fixed by assembly personnel and no cost is captured. Items not able to be repaired by assembly are sent to the machine shop. Samples are:

Side panels: broken welds (30), 6 hrs, $259 Stud and paint: 196 parts, 5.25 hrs, $218

www.wyrickenterprises.com

949-461-0279

Lean & Six Sigma Integration Specialists

Non-Conformance
Companion Rework
Samples of items returned to vendor
Mother board, 27 bad out of 349 (7.7%) since February 2005 Pump board, 97 bad out of 504 (19.2%) since January 2005 Cable set D, 39 bad out of 340 (11.5%) since December 2005 Display cable for touch screen, 82 bad out of 254 (32.3%) since December 2004
www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

Non-Conformance
Summary
We do not track nonconformance very well. A lot of rework is done by assembly personnel and the cost is not captured. However, from the data we do have, it is easy to see that vendors are hurting the Companion assembly department. 92% of the rework is generated outside of the department, but it cost the department an annual average of $145,000 to fix it.
www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

New Layout and Flow of Work Area

www.wyrickenterprises.com

949-461-0279

Lean & Six Sigma Integration Specialists

AFTER Pictures

www.wyrickenterprises.com

949-461-0279

Lean & Six Sigma Integration Specialists

AFTER Pictures

www.wyrickenterprises.com

949-461-0279

Lean & Six Sigma Integration Specialists

New Time and Distance
Total Time = 822 min Total Distance = 190 ft Total VA Time = 578 min Total Steps = 31 Total VA Steps = 7

www.wyrickenterprises.com

949-461-0279

Lean & Six Sigma Integration Specialists

Return On Investment
Reduction of overall time by 36% (1431 minutes) Reduced movement by 7908 feet Total steps reduced from 54 to 31 Value added increased from 31% to 70% Expenditures for the event = $7,500 (see 30/60 day action plan for details)
www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

Return On Investment
Overall benefit is an increase in capacity to run at 4 units per day from 2.1 units per day. This translates to a cost savings of $5400 per unit.

www.wyrickenterprises.com

949-461-0279

Lean & Six Sigma Integration Specialists