Lean 6 Sigma at Solar Turbines

Gary Higganbotham
Solar Turbines Black Belt
April 16, 2009
Agenda
• Solar Turbines \ Caterpillar
- Brief background of company and products

• The Burning Platform

- Why change?

• What is 6 Sigma?
- Background behind the methodology

• Lean 6 Sigma at Solar Turbines

- Organizational structure, training, and project execution
- Successes and lessons learned
Caterpillar is . . .

• The world's largest manufacturer of construction and mining

equipment, diesel and natural gas engines and industrial gas
turbines.
• Technology leader in logistics, construction, transportation, mining,
forestry, energy and electric power generation.
Caterpillar at a glance.

• 277 Company facilities

• 198 Caterpillar dealers (main stores)
• 1,689 Dealer branch stores
• > 400 FG Wilson, MaK, Perkins and Solar Turbines Distributors
• 1,437 Dealer rental outlets
• 3,000+ key suppliers
 Solar Turbines

• Industrial Gas Turbines

• Centrifugal Gas Compressors
• Compressor Sets, Mechanical Drives,
Generator Sets
• Construction Services
 Solar Turbines

• 5600 Employees Worldwide

• 38 Sales / Service Offices
• 16 Overhaul / Repair Centers
• Presence in over 90 Countries
Agenda
• Solar Turbines \ Caterpillar
- Brief background of company and products

• The Burning Platform

- Why change?

• What is 6 Sigma?
- Background behind the methodology

• Lean 6 Sigma at Solar Turbines

- Organizational structure, training, and project execution
- Successes and lessons learned
The Burning Platform - Why change?
! !
• Significant culture change begins with the creation of a “burning
platform”, a compelling vision of why change is needed

• An enterprise can not move forward unless the need for change
is clearly established
200’

What is the burning platform at your company?

The Burning Platform - Why change?
! !
! !

200’
 The Burning Platform - Why change?

Quality & Reliability

Sales
Percent of Industry Sales

Caterpillar’s 6 Sigma Journey Began in 2001…

And We Have Learned a Lot.
Agenda
• Solar Turbines \ Caterpillar
- Brief background of company and products

• The Burning Platform

- Why change?

• What is 6 Sigma?
- Background behind the methodology

• Lean 6 Sigma at Solar Turbines

- Organizational structure, training, and project exectution
- Successes and lessons learned
What is 6 Sigma?

3.4 defects per million opportunities – it’s near perfection

 What is 6 Sigma?

• A measurement of variation

• A method for improving our processes

• The disciplined application of statistical tools

The higher the Sigma value, the lesser the

chance of defects occurring
What is 6 Sigma?

• The organizational commitment and involvement that

engages and further develops your people

• The strategy for prioritizing your business opportunities

• The proven methodology and structure to manage your

projects and deliver exceptional results
What is 6 Sigma?
DMAIC DMEDI

Define

TS
Define

PR
EN

OC
EM
Measure Measure

ES
OV

S
PR
Analysis

CR
Explore
IM

EA
S

TIO
ES

Improve Develop
OC

N
PR

Control PROCESS OWNER Implement

Sustains the Gains

 What is 6 Sigma?
Statistical Proven Project Business
and Analytical Quality Management Philosophy
Methods Tools

Elimination
EliminationofofVariation
Variation
Desired / Nominal
Desired / Nominal Desired / Nominal

- +- + - + - +

Squish 6 Sigma Performance

Scoot
 What is 6 Sigma?
Statistical Proven Project Business
and Analytical Quality Management Philosophy
Methods Tools

• Problem Identification
• Root Cause Analysis
• Select Optimum Solution Quality Function

• Satisfy Customers Deployment

 What is 6 Sigma?
Statistical Proven Quality Project Business
and Analytical Tools Management Philosophy
Methods

Proven Disciplined Process Multi-Generation Plan

Charter
• Clear Objectives
Vision Generation #1Generation #2 Generation #3

Business Opportunit
Case y
• Specific Deliverables 1
2
Gantt Chart/Project
Goal
ID

Statem
Plan
Project Plan
ID Customers
ID Needs
Statem
Project
ent
Task Name

Scope
Sep
Qtr 4, 1999

Oct Nov Dec

Qtr 1, 2000
Jan Feb Mar
Team Members
Qtr 2, 2000

Apr May Jun

Qtr 3, 2000

Jul Aug Sep

Communications Plan
3 ID CCRs

• Stakeholder Involvement
ent
4 Review

In-and-Out-of-Scope Tool Stakeholder

5
6
7
Develop Concepts
High-Level Design
Capability
Communication
8Objective
Desired
Design Review
Response
What Do
They Already
Current
Attitudes
Communications
Channel
Timing Who Prepares
and Delivers
9 Develop Details Know?

TS
10 Simulation
11 Cost Analysis

In Scope

PR
EN
12 Design Review

ImOCE
13 Procurement
14 Implementation

EMs
OVoces

pro S
veSmC
PRPr
Out of

IMon
Out of

enRE
Seati
scope

t AT
scope

ECSr

IO
OC

N
Process Management

PR
PROCESS OWNER
 What is 6 Sigma?
Statistical Proven Quality Project Business
and Analytical Tools Management Philosophy
Methods

6 Sigma is Philosophy Voice of the Measurements

Customer Driven

• Focus on the Customer

• Fact Based Decision Making
• Process Focus Process Focus

• Cross Functional Collaboration Inputs Activity Output Inputs Activity

• Drive for Perfection; Tolerance for Failure

What is 6 Sigma?
New
Improve Maintainability Product
Safety Introduction

Customer
Reduce Satisfaction Delivery
Cost Performance

Manufacturing Product
ISO
Velocity Quality

6 SIGMA
Agenda
• Solar Turbines \ Caterpillar
- Brief background of company and products

• The Burning Platform

- Why change?

• What is 6 Sigma?
- Background behind the methodology

• Lean 6 Sigma at Solar Turbines

- Organizational structure, training, and project execution
- Successes and lessons learned
Lean 6 Sigma at Solar Turbines
Structure
• Executive management accountability
• Master Black Belts
• Finance
• Black Belts
• Green Belts
• Subject Matter Experts
Lean 6 Sigma at Solar Turbines
Black Belts
• 2 year commitment
• Certification
• 4 projects per year
• E-Tracker
• Financial Reporting System
• Annual Quality Award competition
Lean 6 Sigma at Solar Turbines
BB Training
• 1 week per month over 4 months
• Work first project at same time
• Executive management support
• Facilitated by MBB’s
• Formal graduation ceremony with Solar President
Lean 6 Sigma at Solar Turbines
Project Teams
• Sponsor
• Black Belt
• Green Belts
• Yellow Belts / Subject Matter Experts
• Stakeholders
• Master Black Belt
Project Charter
 DMAIC Tollgate Summary
Define Measure Analyze Improve Control

" Business Case " Define Y = f(x) and list ! Variation shown ! Generate Multiple ! Pilot/Solution Results vs.
your measures graphically Solution Ideas Project Goals
" Opportunity (Cp, Cpk, SQL)
Statement " Deployment Map(s) ! Evaluate and select ! Budget and Benefits
that depict measure ! Performance solutions Case
" Goals locations gap(s) quantified
! Communicate team ! Potential Problem
" Scope " Operational ! Problem recommendations to Analysis
Definitions Statement(s) stakeholders
" Team Resourced & ! Detailed Implementation
prepared " Data Collection plan ! Process Map ! Link solutions to root Plan
Analysis causes
" High Level Project " Measurement System ! Communication Plan
(bottlenecks,
Plan Evaluation ! New Future State
value-add)
Process Map(s) ! Standards and
" High Level Process " Output Measure (Y), ! Potential Root Procedures
Map (SIPOC) Baseline Performance Causes quantified ! High Level
quantified and prioritized Implementation Plan ! Training Plan
" Quick Wins
(updated in Analyze)
! Root Causes ! Process Owner(s) ! Key Metrics and Process
" VOC Translated to Control System
CCR’s
" Financial How/How Validated confirmed
(updated in Analyze) Y= f (x)
! Projected Benefits ! BRM
" Communication Plan
" Process Owner(s) ! Financial Baseline ! BRM ! FRS Updated & 2/6 mo
" BRM Identified approved control meetings
" E-tracker updated " BRM ! FRS Updated scheduled
! BRM
! FRS Forecast ! Scheduled Transition to
Process Owner(s)
Entered
! Replication Opportunities
Lean 6 Sigma at Solar Turbines
 Voice of the Customer
Voice of the Customer
Actual customer statements
and comments which reflect
their perception of:
• An attribute of a product or
service
• An experience with a
product or service or its
delivery
• An encounter or
experience with a business
processes or representative
“This mower is way too hard to
start”
“I’m always on hold or end up
talking to the wrong person”
“This package doesn’t do squat”
Key Customer Issue
The real customer concerns,
values or expectations
regarding a product or
service. Void of emotion or
bias, the statement describes the
primary issue a customer may
have with the product or
services. Describes the
experience surrounding the
attributes of the product or
service expected or desired by
the customer.
Wants the mower to start quickly and
painlessly
Wants to talk to the right person
quickly
The software does what the vendor
said it would do
Critical Customer Requirements
The specific, precise and
measurable expectation which
a customer has regarding a
product or service.
• Mower starts within two pulls on
the cord
• Mower starts with an effortless
pull on the cord not exceeding
24” in length
• Add additional menu items to the
voice system (bad)
• Customer reaches correct person
the first time within 30 seconds
(good)
• Every design feature needed is
built into the package
• The software is fully operational
on the customer’s existing system
 Y = f(x), - Measurement Plan
<Executing Special Requirements for Package Manifolds>
Business Sales Order
Customer Quality Structures
Managment Engineering

PAE
Reviews
customer spec

Y X Measurement plan PRA Released

PAE
Handoff

X1
to PM/PE

• Total Product Cycle Time HME Releases

ACS sent to

Manufacturing
Elapsed Time • Total Process Time 1 4
Project Team
A Initial Hydro’s
(HMSTAT)

QE

Processes & • Cycle Efficiency IKOM Creates Initial

ITP

YY Workflow A
PE Released
PID in PDSWIN
ME validates
key long lead
items and

YY
releases

Drawing
Drawing CKOM
(This loop may be repeated via Customer input
Forecast BOM

Package Cost
Release
Package Cost
Release
PE/PM/QE
throughout the project)

Reviews Initial
2

Cycle Time X2 • Frequency of Rework ITP with

3 Customer
ACS Revision

Cycle Time Standard

Accuracy of & • Pareto of Root Causes
Parts Yes
that Impacts ITP?
1

No

End

Subassembly
Inputs ITP Revisions? Yes
2
QE Revises ITP

No

End

PM Reviews/
QE
Revised ITP Approves ITP

X3 • Time Lost Due to Rework

Uploads ITP to
sent to customer and ACS
Windchill
3 revisions

Problem Customer
changes?
No

Resolution Yes A

Time
 Business Risk Management
BRM 6 Sigma Risk Action Plan
Engineering Drawing Release
Updated On: 3/25/09
Key Risk
Risk Comments Actions Owner of Actions
Category
Risk Map

External
10

9
- Improve efficiency of release process
8

Financial
Delayed drawing releases - Project Team
- Provide ability to find lost/delayed
7 will increase probability of
items
expedite fees. - Group Managers
Significance

6 - Metrics to improve process mgmt

People
Operational Submitters will not
- Revise process documentation - Project Team
People
5
understand process and
Strategic
will not provide all
4 - Train submitters - Group Managers
required information.
- Improve efficiency of release process
3
Operational

Delayed drawing releases - Project Team

- Provide ability to find lost/delayed
2 will increase probability of
items
material shortages. - Group Managers
1
- Metrics to improve process mgmt
1 2 3 4 5 6 7 8 9 10
Likelihood
Strategic
Structures Lean Journey

Not so good to GREAT!

Packaging's Largest Supplier

Brackets

Manifolds
Business Case
Solar’s volumes were increasing in 2006 and
were to grow by 30% in 2007.

That was an additional

11,000
Structures parts for 2007
 Voice of the Customer
In 2006 the Structures department struggled to
meet increased production levels; their
inability to support the package takt rates put
the year's financial plan at risk.
! "#$%&'($)*+&,+-#.-)/01'%21)34%$+'#(.1
Meetings, Meetings, Meetings
July 2006
Monday Tuesday Wednesday Thursday Friday

5%%'#.- 5%%'#.- 5%%'#.- 5%%'#.- 5%%'#.-

5%%'#.- 5%%'#.- 5%%'#.- 5%%'#.- 5%%'#.-

r s
5%%'#.- ho
u ! !!
5%%'#.- 5%%'#.- 5%%'#.-
0 h
5%%'#.-
t
0
1 m o n
e r 5%%'#.-
5%%'#.- 5%%'#.- 5%%'#.-
p
5%%'#.-
 Process Mapping Inputs something into text
Turbine Assembly Creates BOM for engine
routing (after test items
M.E. removed from engine after
test?)

Turbine Assembly Cashes parts 5 M-days

Signs off
from PSS date “Package
Production Scheduler Final” (Titan, Mercury, T65,
(Marin) T70 only)

ASL Coordinator

Inventory Specialist
Cashes PA engine Loose
ship parts 2 weeks from
PSS date “Final Date”

Pulls Floor Stock

Audits Loose Ship parts
delivered by Stores. With
Stores in Triangle until Delivers parts to KM 25
STRUCTURES WIP
LINE
(Allen) ASL Bill
audited by PM Low Bay PA engine DZ

After Market Shipping Coordinates acceptance of

Contacts PM for Audit
Loose Ship parts & T.A. PM audit
Coordinator parts, PM audit, Photo’s
(Van Arsdale)

Len's FLOW BURN FORM/ IRON LID BOOTH WB PPO In WB WB WB WB Total

(Alex)

After Market
Shipping Packer #
Packs Loose Ship.

DATE
Gets Weights & Dimensions
Delivers W &D’s to Lisa &
Veronica, or does Alex?
DEBUR DRILL SAW Loads truck
Exits MCT
Lisa & Veronica Create Preliminary Pack
List
Receive W&D’s from
packer and forwards to TJ
Cox in Logistics
Creates Bill of Lading
office DAN'S TABLE BREAK WORK IN RACK 1 Box 2 3 4 5 WIP
Logistics Analyst
(TJ Cox)
Receives W&D’s, creates
shipping instructions
Sends shipping instructions
to Lisa & Veronica to create
the Bill of Lading, Final
Contacts Switzerland of
pickup date
OFFICE
1 20-Sep 69 72 3 2 3 0 9 4 2 2 3 0 0 1 278 13 21.38
Pack List????

Turbine Assembly
Assembles Engine, Test
Cell completes test, returns
engine
Borescopes engine, ???
Buttons up, sends to paint
Returned from paint
108 Gets M.E. to sign off, install
data plate

Photographer
(Joe Canales)
Takes Photo – Posts
on-line
2 21-Sep 82 94 105 10 0 0 0 5 5 1 7 3 0 0 7 319 13 24.54
3 22-Sep 67 90 102 3 1 0 0 6 4 1 5 4 0 1 5 289 7 41.29
Ancillary Shipping Lead Receives engine, ????, Sends Weights & Dims to
Loads truck
(Tommy) eventually packs Veronica & Lisa

Freight Forwarder Checks Bill of Lading and

4 25-Sep 67 88 106 2 3 0 0 4 4 1 4 4 0 1 4 288 20 14.40

transports engine to next
Trucking Company location

5 26-Sep 83 56 91 0 2 0 4 11 4 3 7 3 0 3 3 270 11 24.55

6 27-Sep 88 71 92 0 3 0 1 3 4 1 6 2 0 2 4 277 21 13.19
7 28-Sep 89 68 61 1 4 2 0 5 4 1 3 1 0 2 1 242 24 10.08
Averages 83 77 90 3 2 1 1 6 4 1 5 3 0 1 4 280 16 21

Exit Logs
 What else did we find? WIP

Weld Supervisor’s
Booths Weld
Office
Hydro Booths
Machine
Test Plasma
Shop
Burn Table
 Structures Baseline
Sum mary for C 1
Anderson-Darling Normality Test
A-Squared 3.41
Baseline Performance
P-Value < 0.005
Mean
StDev
Variance
Skewness
20.780
8.001
64.012
3.3112
Brackets
Kurtosis 15.4189
N 50
Minimum 12.000
1st Quartile 17.000
Median 19.000
3rd Quartile 23.000

280 Brackets in WIP

12 24 36 48 60
Maximum 63.000
95%Confidence Interval for Mean
18.506 23.054
95%Confidence Interval for Median
17.672 21.000
95%Confidence Interval for StDev
95%Confidence Intervals 6.683 9.970
Mean

Median

18 19 20 21 22 23
Cycle time of
20.7 days
Baseline Performance Summary for Weld booth exits
A n d e rs o n -D a r lin g No r m a lit y T e s t
Pipes
A-Squa re d 0 .8 6
P -Va lu e 0 .0 2 6

Mean 5 .8 1 4 8
S tD e v 2 .9 7 2 0
Va ria n c e 8 .8 3 3 0

14/day @ 7 days/wk
S k e wn e s s 0 .6 3 9 2 0 9
Ku rt o s is 0 .1 6 0 0 7 2
N 54

M in im u m 2 .0 0 0 0
1 s t Q u a rt ile 3 .0 0 0 0
M e d ia n 5 .5 0 0 0
3 rd Qu a r tile 8 .0 0 0 0
3 6 9 12 15 M a x im u m 1 5 .0 0 0 0
9 5 % Co n fid e n c e In t e r v a l fo r M e a n
5 .0 0 3 6 6 .6 2 6 0

Demand for 80-90

9 5 % Co n fid e n c e In te r v a l fo r M e d ia n
4 .0 0 0 0 7 .0 0 0 0
9 5 % Co n fid e n ce In te r v a l fo r S tD e v
9 5 % Co n fid e n c e In t e rv a ls
2 .4 9 8 4 3 .6 6 9 0

Brackets per day

Mean

Median

4 5 6 7
Baseline Performance
16/day @ 7 days/wk
21
Baseline Part Shortages

Shortages per Value Stream

March - August 2006
50

700 40

Pipe 30

Data
Backlog 20

10

0
Small Gen_1 MarsTitanCSMD_1 C40-T70 CSMD_1 Large GS_1
 Variation Analysis
Drilling Analysis
Summary for C1
Drilling
Anderson-Darling Normality Test
A-Squared 2.90
P-Value < 0.005

Mean
Outlier 71.625
StDev
33.398

Variance
Skewness
5130.118
3.3280
Analysis:
Kurtosis 11.6178
N Outlier due to common
14

Minimum 1.450
cause variation.

0 50 100 150 200 250

1st Quartile
Median
3rd Quartile
Maximum
3.383
4.340
34.468
273.370
Out of Control
95% Confidence Interval for Mean
-7.957
Largest
74.753
size hole required
three
95% Confidence Interval separate drilling
for Median

95% Confidence Intervals

3.404 34.215
phases to reach proper
95% Confidence Interval for StDev
51.925 diameter.
115.391
Coping Baseline
Mean

Median Summary
Copingfor C1
0 20 40 60 80
TIME STUDY Anderson-Darling Normality Test
A-Squared 0.21
COPING P-Value 0.832

Mean 50.314
Program # Diameter Tools needed Old StDev 25.815
Variance 666.432
O20 2"RUN 1.5"PIPE T18 14.33 Skewness 0.278043
O21 3"RUN 1.5"PIPE T18 14.52 Kurtosis -0.780435
Caterpillar: Confidential Green 33 N 14
O22 4"RUN 1.5"PIPE T18 23.32
Minimum 14.330
O23 6"RUN 1.5"PIPE T18 54.02 1st Quartile 31.458

O24
O25
8"RUN 1.5"PIPE
3"RUN 2"PIPE
T18
T18
87.30
34.17 20 40 60 80 100
Median
3rd Quartile
Maximum
47.775
69.228
97.240
Bracket
HistogramCycle Time
of MCT BEFORE
95% Confidence Interval for Mean
O26 4"RUN 2"PIPE T18 41.53 35.408 65.219
14
O27 6"RUN 2"PIPE T18 36.52 95% Confidence Interval for Median

O28 8"RUN 2"PIPE T18 68.18 33.612 68.396

95% Confidence Interval for StDev
O29 4"RUN 3"PIPE T18 38.14 95% Confidence Intervals
18.715 41.590 12
O30 6"RUN 3"PIPE T18 56.45 Mean

O31 8"RUN 3"PIPE T18 72.37

Median
O32 6"RUN 4"PIPE T18 66.30 10
30 40 50 60 70
O33 8"RUN 4"PIPE T18 97.24
50:31 average coping
Outlier

Frequency
time per pipe
8

Welded Assembly Exits 6

Caterpillar: Confidential Green 26

4

0
15 20 25 30 35
MCT BEFORE
 Solar Success
PSO Success
PSO Packaging Value Streams
Structures
StructuresMulti
MultiGeneration
GenerationProject
ProjectPlanv
Plan
Safety +5S Order Velocity Chase Waste
Management
set,
Safety
sort, Cycle Time NVA Activities
shine, WIP caps reductions
Employee
standardize, Waiting
Engagement Visual Control Process Overproducing
sustain Boards Rework
Optimization
set, sort,
Safety Motion
shine, Green Change Response Processing
Employee
standardize, Management Time Inventory
Engagement
sustain Transportation

Lean 6 Sigma
Integrity Excellence Teamwork Commitment
 ;24<(0%%)
5S+1
;.-+-%2%.'
Quality

Safety
/($')6 /%')6 /7#.%
/'+.8+$8#9%)! /:1'+#.

Safety Velocity
Ergonomic
 Heijunka
Scheduling
Heijunka Methodology

Visual Order
Management
WIP Caps
 Over 1,200 pipes
in finished goods.

Yet, Structures could not

deliver the correct pipe to
its customer on time.

After
 Employee Lead Kaizen Event
One Bin System

Two Bin System

Before
After
 Lean
Customer
Gas Fabrication
Interface
Fuel ModulePanel
Design for Manufacturability

80%
Gas Fuel Module
50% cycle time reduction
cycle time
reduction Removed 14 feet of
weld per module

4,200
feet of
welding
4,000 feet annually!
Customer Interface Panel
annually
Feet of welding

Labor hours
Lean Machining

Reduced cycle times

from 30 minutes to
Continuous Improvement
30 seconds
Operator created a solution
for larger pipes, cycle times = Summary for
Machining CTC1
Anderson-Darling Normality Test

2 minutes A-Squared
P-Value <
3.48
0.005

Mean 0.46071
StDev 0.31936
Variance 0.10199
Skewness 1.56562

Manufacturing Engineer Kurtosis

N

Minimum
0.50138
14

0.30000
1st Quartile 0.30000
Median 0.30000
3rd Quartile 0.48750
0.4 0.6 0.8 1.0
Maximum 1.05000
95% Confidence Interval for Mean
0.27632 0.64511
95% Confidence Interval for Median

Outlier: Uncommon 95% Confidence Intervals

0.30000 0.33860
95% Confidence Interval for StDev
0.23152 0.51450
Mean

sized diameter pipes Median

0.3 0.4 0.5 0.6 0.7

Machinist
Eliminated
daily trips %) ? 8 8% 8)

( .! >+<:
=
2008

Barstow
8 Deadly Wastes
99% First Pass X-ray Inventory
Overproduction

Unused
Creativity / Over
Capability Defects Inventory Production

Lost opportunities due Production or rework of out- Excess raw material, Excess supply beyond
to poor safety and an of-specification parts work-in-process the requirements of
underutilized workforce or finished goods the next process

Excess Over
Waiting Motion Transportation Processing

Lost time due to Wasted movement Excess movement of Work that adds no value
poor product flow — made while working work-in-process to the customer or business
shortages, bottlenecks,
down machines MOTION

3EE#&%

Burn Barn
B
?
C * +<<%'1
D
/

@:$.)'+A<%
Hand
Writing
/ 7%8

"(:A<%)
1 #8%8

Waiting 110
Processing
74
 Phase 1 Phase 2

Metrics Board
Monthly Forum for new
Employee ideas and
Communication feedback to
Meetings sustain process
control
 Voice of the Customer
In 2006 the Structures department struggled to meet increased production levels;
their inability to support the package takt rates put the year's financial plan at risk.
The Lean 6 Sigma process improvements not only allowed Structures to get
caught back up and support our 2006 volumes, the improvements have allowed
Structures to successfully supported record levels in 2007, including our 2nd
quarter performance of one package a day, 7 days a week, for over 100 days
straight! This has been a phenomenal improvement!
Director
Packaging Systems Operations

We have seen excellent benefits related to the Structures organization process

improvements and 6 Sigma efforts. Delivery performance from the Structures
department to Customer Services went from a very low 25% on time delivery in
July 2006 to an outstanding 100% on time delivery in July 2007.

Manager
Customer Services Project Management
 "%1#-.)E($)
5+.:E+&':$#.-) >+<:%)*$(4(1#'#(.
K5L1
HHI)E#$1')4+11)J!$+0)
'%1')1:&&%11) C0&<%)'#2%)
$%8:&'#(.1)
G#1'%.#.-)'()(:$)
4%(4<%);3/)
;2A%88#.-)F)/#-2+)
&:<':$%)
5%%'#.-)(:$)
&:1'(2%$1).%%81)
Controls Assembly
Major 5S+1 Event
Lean Work Centers & Product Flow
After
Off-Skid Offices On-Skid Controls
Lean Work Lean Work
Support
Center Central Center Lean Work
Supermarket Center
Floor Stock

Assembled
Project
Assembled
Tested Kitting Tested

Pkg. Test Pkg. Assembly

Better aligning product flow to our Customers

Single Piece Flow

Panel Build Up

Final Test
Cross Wiring

Panel Build System 1st Pass 2nd Pass

Panel Wiring
Up Wiring TEST TEST Packaging
Pull Pull Pull Pull Pull

Kit

Panel Wiring 1st Pass Test

Results and Benefits
By implementing the material kitting operation, we
eliminated internal excess motion

Before After
Motion
Results and Benefits
By changing our internal product flow we were able to
change our external product flow
Before After

Off-Skid
Packaging Packaging
Off-Skid
On-Skid On-Skid

Controls Controls

17 20
Results and Benefits
32

11

7.5
8.5
Results and Benefits

37 days

12 days
Controlling the New Process

Mgr. Spvr.
PAC
ME Schedulers
Results and Benefits
32 7.5
8.5

11
65%
65 13%

87%
37 days 67%
12 days

29%
 Drawing Release Project

Business Case Opportunity Statement

Engineering drawing release cycle is Reduce labor cost, material
unclear and inefficient. shortages, and expediting fees.

Project Goals
Improve cycle efficiency

Clean up the process(es)

Multiple Drawing Types and Processes

Purchased Part

Configuration
Management
Compliance

Technology
Information
Structures
Modeling

Drafting
Drafting
Project Drawings x x x
AutoCAD
Source Control Drawings x x x
Source Control Drawings x x x x
Specfication Control Drawings x x x x
CADDS
Procurement Control Drawings x x x
Purchased

Project Drawings
Procurement Control Drawings
Project Drawings
Pro-E
Source Control Drawings
Specfication Control Drawings
Procurement Control Drawings
Word Project Drawings
Source Control Drawings
Manufactured
x x x
x x x x
x x x x
x x x x x
x x x x
x x x x
x x x x
x x x x
x x

External Supplier
CADDS

Structures / PSOSUR
x x x

Structures / PSOSUR
x x x x
Pro-E

External Supplier
x x x
x x x x
Assy

Pro-E
Shop Floor Drawings

CADDS
Shop Floor Drawings x x x
Multiple Drawing Types and Processes
Access file on the S : drive. Info posted (read only) in livelink for
users (Ref http ://solarweb2.solar.cat.com/engstandards /
purchasedpartdrawings /index.html “Where is my drawing now” )

Manually updated daily with all items

S:#Depts\187\Modeling Report .xls received and pending release
NEW

Design Services DEF

Entry and Exit Purcase Part Purcase Part
D258 and D403 Drafting Log Drafting Log
Log
Create part in
Purchased
Windchill , RTP, Purchase Part
Part Design Services Compliance Purchase Part Original Purchase Part
complete initial setup , Drafting Inbox
set NEW flag to Done , Inbox Inbox Drafting Inbox Submitter’s Inbox Drafting Inbox Purchased
collect signatures for Part
PPRD / RFC initial
submital , and prepare ODS Administrator
Make log entry Compliance verifies Make log entry and Back check drawing and Make log entry and add ODS Administrator sets
dwg packet loads drawing into
FIFO certification certificates complete drafting sign RFC ERCC stamp to drawing I DEF flag to Done
INPUTS : New part number
FIFO Windchill
INPUTS :
Word, Excel and
FIFO INPUTS : FIFO INPUTS : INPUTS : INPUTS : INPUTS : INPUTS :

FIFO
OUTPUTS : new DEF item review
flag
OUTPUTS : AutoCAD Word Drawings Word Drawings
OUTPUTS : OUTPUTS : OUTPUTS : OUTPUTS :
Word Drawings WIP ________
OUTPUTS : OUTPUTS :
Drawings
VALUE ADDED TIME :
VALUE ADDED TIME : I I Dave’s Log
I I
VALUE ADDED TIME : VALUE ADDED TIME : VALUE ADDED TIME : VALUE ADDED TIME : VALUE ADDED TIME :

I
VALUE ADDED TIME :
Exits ________
Word and AutoCAD WIP ________ Au Do
toC WIP _______
Drawings AD es WIP ________ WIP ________
WIP ________ Dave’s Log

Word Drawi ngs

If Required d ra it
Pro-E and CADDS Drawings Exits ________ go Exits ________
w in to Dave’s Log Dave’s Log
Exits ________ gs Exits ________ Exits ________
req Au th
e CM group puts drawing PLN PUR
u toC ME
ire on T: drive ????

Word Drawings
a A
If Required tif fi D ra D a n or
Initiate LOA and copy le fr w ing d E s tr
a ig
Create Model if required om xce INPUTS :
Planner and Buyer s l ht
th e to
s ub C Manufacturing OUTPUTS :
m M?
INPUTS : Lead time and need date
INPUTS : itte r Configuration AutoCAD
Package DE Engineer Inbox Purchased Purchased
OUTPUTS : LOA – supplier begins Management and Excel VALUE ADDED TIME :
Inbox Part Part
Pro-E drawings tha t require modeling

work sooner OUTPUTS :

Inbox
VALUE ADDED TIME :
VALUE ADDED TIME :
DE back checks model / I Update BOM as
Review for CM CM group releases through
Complete Planner
Buyer gets quote from
Planner releases
requirements and create ARP (Windchill) and sets supplier and inputs item
drafting required portion of item setup purchase order
DHR entry (sys release) DEF flag to Done cost
Make electronic I
documentation from INPUTS :
WIP ________ INPUTS :
FIFO INPUTS : INPUTS : INPUTS : INPUTS : INPUTS :

supplier available WIP ________

Drafting Required ? OUTPUTS :
Pro-E and CADDS OUTPUTS :
Pro-E, CADDS, AutoCAD, and Excel Drawings Word, CADDS, AutoCAD,OUTPUTS : CADDS OUTPUTS : OUTPUTS : OUTPUTS : OUTPUTS :
INPUTS : Exits ________ DEF
Drawings and Excel Drawings
Pro-E and CADDS Drawings VALUE ADDED TIME : VALUE ADDED TIME : Exits ________ VALUE ADDED TIME : VALUE ADDED TIME : VALUE ADDED TIME : VALUE ADDED TIME : VALUE ADDED TIME :
OUTPUTS :

I
VALUE ADDED TIME :

WIP ________ Purchased

Part
Pro-E and CADDS Drawings

FIFO
Pro-E
Pro-E Drawings

Exits ________
CM Group initiates
release in ARP

Manufactured Parts
Pro-E and CADDS
Drawings for
INPUTS :
IT Inbox
gs

55 items in Kanban
w in

OUTPUTS :

10/21/08
D ra

VALUE ADDED TIME :

-E
P ro

D225 Drafting
Inbox Package DE
Inbox
Create part number in Prepare PPRD / RFC
Windchill and drawing packet DE reworks design as
Make log entry and Structures ME initiates
required per Structure’s IT checks structure , releases
Modeling complete drafting item setup in BAAN
INPUTS : INPUTS :
Required?
FIFO NEW
feedback drawing in Windchill and
INPUTS : INPUTS : INPUTS : sets DEF flag to Done
OUTPUTS : OUTPUTS : Pro-E Drawings Pro-E and CADDS
No modeling required OUTPUTS : OUTPUTS : Drawings OUTPUTS :
INPUTS :

VALUE ADDED TIME : VALUE ADDED TIME :

OUTPUTS :
VALUE ADDED TIME : VALUE ADDED TIME : VALUE ADDED TIME :

DEF
Manufacture VALUE ADDED TIME :

Part

I PLN ENG
WIP ________ Purchased
Part
Exits ________ Drafting Log
WIP ________

Manufacture Manufacture Exits ________

Part Part
S:#Depts\187\Drafting Report .xls Planner completes item Structures ME sets ENG Planner opens
setup and sets cost flag to Done production work order

Purchased Part Flow (s) INPUTS

OUTPUTS
:

:
INPUTS

OUTPUTS
:

:
INPUTS

OUTPUTS
:

Manufactured Part Flow (s) VALUE ADDED TIME : VALUE ADDED TIME : VALUE ADDED TIME :

Structures ME does not keep a log

Who gets drawing packet first?

Minor errors in drafting corrected by
of inputs. Projects are distributed Structures. Major drafting or any modeling
evenly across the (3) ME’s. Work errors are returned to appropriate person
Push is processed 6 weeks prior to base (i.e. drafter or DE )
lay. No official process defined for
returning drawings to DE .

What is req’d for certification?

What information is required?
BAAN
Item
Review
Flag

Who authorizes release?

When and how do I expedite?
Where is my drawing packet?
etc…
 MS Word Based Purchased Parts

: –
t

i
• Time Study
• Value Add Time
• Span Time
All data points are median values. • Cycle Efficiency
 MS Word Based Purchased Parts

: –

Time Study Data Value Add

t

n = 60
:
Time Span Cycle
(Minutes) (Hours) Efficiency
Design Services 1 0.5 0.0667
/

Compliance 3 1.25 0.0417

Purchase Part Drafting (1) 10 16 0.0003
Backcheck 5 4 0.0003
Purchase Part Drafting (2) 2 3 0.0003
DHR / Config Mgmt 15 3.75 0.0011
Load to On Line Drawings 2 3 0.0003
2008 Historical Data
i
Mdays
Design Services to PPD 2
Span
PPD 1
(Calendar Days)
PPD to DHR 2
ODS to DEF 0.67
DHR to DEF 2
DEF to PLN 4.32
DEF to PLN 1
PLN to PUR 7.25
PLN to PUR 6
14

All data points are median values.

 Simple Process Change

SP2 SP3 SP2 SP3 SP2 SP3

–

: –
t

i
 Simple Process Change
Excel Excel

Design
Compliance
,
Services
INPUTS: INPUTS:

:
OUTPUTS: OUTPUTS:
:

VALUE ADDED TIME: VALUE ADDED TIME:

SP2 SP3 SP2 SP3

–

: –
t

• Deliver to Compliance first

• Eliminate two trips between SP2 and SP3 i

• Reinstate Compliance spreadsheet

 Locator Tool
Excel

Design
Compliance
,
Services
INPUTS: INPUTS:

:
OUTPUTS: OUTPUTS:
:

VALUE ADDED TIME: VALUE ADDED TIME:

: –
t

• Simple VB query on desktop

• Aging file locator

• Cycle time metrics

i
Process Documentation
•Better definition and understanding of drawing release process/requirements

Retrofit Controls Manufacturing Engineer

Package (Mechanical) Design Engineer
Many options?

Hydro Mechanical Design Engineer

Controls Manufacturing Engineer

Package Manufacturing Engineer

Expanded Services Controls DE
• Process Maps

Ancillary Design Engineer

Controls Design Engineer

Process Control Engineer

Package Design Engineer
Controls Test Engineer
• Work Instructions
• Guidance Notes

GN 5.3.2-01 IDA / Promis-E Hydro Dwg Rel & Rev Ctl 1

GN 5.3.2-09 MID Engineering Guidance and Definitions 1
GN 5.3.2-17 Promis-E Drawing Routing Process 1
GN D258-17 Anti-surge Design Drawing 1
GN P.ED-07 Drawing and Software Release 1 1 1 1 1 1 1 1 1
GN PEC-07 Request for CADD and Release (RFC) 1 1 1 1
GN PEC-23 Release Cycle for Base/Frame Assemblies/Sub-Assemblies & Detail Parts 1 1 1
WI P.EC-12 Source Control Drawing Process 1 1 1 1 1
WI P.EC-22 Rev and Rel for Stand Alone Pipe Assy's 1
WI P.EF-06 Piping Detail Drawing Specifications 1 1
WI P5.07 Project Legal Drawings 1 1 1 1 1 1 1 1
WI PEC-12 Source Control Drawings (SCD) & Procurement Control Drawings (PCD) 1
Process Documentation
•Better definition and understanding of drawing release process/requirements

Determining Need for a Part Drawing Creation (drafting / hand markup)

- part searching - when to use electronic or hand markup
- new part creation - instructions on how to get electronic copies
- configuration management - instructions on how to do markups

Release process
Drawing Types
- process flow
- decision flow
- drawing packet contents
- define drawing types
- data requirements
- applications
- expediting instructions
- nomenclature
- procurement rules
Training Material

Solar Product Certification

• Create quick reference material

An Overview of Solar
Solar Product Certification
Product Certification

Solar Product Certification

R.K. Bostick 1-05
Quick Reference

Package Hardware
Certification
Requirements R.K. Bostick 5-05

R.K. Bostick 5-05

Training for Certification

Database
Rev. 2, 3/15/07

• Create links for functional departments

Lean Mechanical Drawings
 Mechanical Drawing(s)
• PG creates 2 drawings - Mechanical Installation Drawing

• OG creates 1 drawing - Mechanical Interface Drawing

Mech. DE Pkg DE
Copy Standard Copy Standard

Mech. DE Ancillary DE
Prunes Tree Prunes Tree Pkg DE Enclosure DE Frame DE Ancillary DE
Prunes Tree Prunes Tree Prunes Tree Prunes Tree

Add S.O. Add S.O.

Features Features Add S.O. Add S.O. Add S.O. Add S.O.
Features Features Features Features

Generate Generate
In Crate Dwg Out Crate Dwg Design
Freeze
Release Release
In Crate Dwg Out Crate Dwg Generate
MID Drawing

Release MID
One Drawing VS Two

Boxplot of T otal M echanical Draw ing H ours

1000
Total Mechanical Drawing Hours

800

600

400
66 hrs

200

0
O&G PG
Bu sin ess Un it
 One Drawing VS Two - Regression
Mech Dsn & Dft Hours Dependent Variable = Mech. Design and Draft Hours

18
Predictor P
12
A CS Revisions
ACS Revisions 0.047
6

60
Project Span Time (weeks) 0.566
Total Releases 0.043
45
Project Span (wk s)
Sales Order Items 0.055
30
Custom Features 0.196
4.5

3.5
Total Releases
2.5

300

200
Sales Order Items
100

80

40 Custom Features

0
300 600 900 6 12 18 30 45 60 2.5 3.5 4.5 100 200 300
One Drawing VS Two - Regression
Starting Equation: Total Hours = -140 + 12*(# of ACS Revisions) + 71.3*(# of Dwg Releases)
+ .97*(# of Sales Order Items) + 2.02*(# of Custom Features)

P = .002 (Model will correlate well with actuals)

R-Sq(adj) = 34.2% (34% of the variation in design and drafting hours is accounted for)

Analysis of variation after accounting for ACS Revs, Releases, Sales Order Items, and CF’s:
Factor P R-sq(adj) Impact of Different Levels
Certification .088 8.4% CE +268 / CENELEC +109 / NEC –66

Analysis of variation after accounting for impact of Certification:

Factor P R-sq(adj) Impact of Different Levels
Custom Frame .075 6.5% Custom Frame +13.3 / Std Frame –68.7

Other factors (Custom Generator, Custom L/O Cooler, Enclosure, Fuel System, Marine, Inlet, and
Exhaust) showed no statistical significance.

Final Equation: Total Hours = -275 + 12*(# of ACS Revisions) + 71.3*(# of Dwg Releases)
+ .97*(# of Sales Order Items) + 2.02*(# of Custom Features)
+ 336(if CE) +175(if Cenelec) + 82 (if custom frame)
One Drawing VS Two
Boxplot of Normalized Hours

750

500
Normalized Hours

250

-250

-500
O&G PG
Business Unit
Content Differences
Content Differences
Isometric Views
Content Differences
Isometric Views

Orientation of ventilation fans

Content Differences

• Transfer content to ‘Package Installation Guidelines’

• Ε Exploded Views
Content Differences

One view
per sheet
Multiple views
per sheet
 Content Differences
Elevation Views

• Single view per sheet adopted

 Content Differences
Elevation Views

• Single view per sheet adopted

• Changes for enclosure door swings
Content Differences

• Skid edge to device cable requirements

• Content added to ‘Package Installation Guidelines’
• Additional connection information added to MID
 Content Differences

Solar In Crate Drawing Supplier Drawing

# Ε Generator Terminal Box in MID

# Single source for information
 New MID Summary
• Single Mechanical Interface Drawing (MID)
• Content Changes
Ε Exploded views
• Single elevation view per sheet
• Replacing enclosure door swings with ‘Stay Out Zone’
Ε Package component layout
• Adding end device connection info to Table 1
Ε Generator terminal box
• Adopting PG datum flags
• MIND Notes Changes
• Reference to Installation Guidelines
• References for cable sizes
• Refining Pro-E Drawing Simplified Rep
Conclusion