ASobi LIBRAGY ~. GOPY Operational Excellence Series Book 1: Operational and Performance Excellence— The Shingo Model Kenneth E. Rizzo Printing Industries Press PITTSBURGHCopyright 2011 Printing Industries of America Al Rights Reserved Printing Industries of America Catalog No. 17941 International Standard Book Number: 978-0-88362-711-2 Printed in the United States of America Reproduction in any form by any means without specific written permission is prohibited. In Printing Industries Press books are widely used by companies, associations, and schools for training, mazket- ing, and resale. Quantity discounts are available by contacting the Printing Industries of America Member Central department at the number below. Printing Industries Press Printing Industries of America 200 Deer Run Road Sewickley, PA 15143 Phone: 412-741-6860 Toll-Free: 1-800-910-4283 x70 Fax: 412-741-2311 Email: membercentral@printing org Online: www.printing.org {dual trademarks are the property of their respective owners. Product names are mentioned in this book a5 a matter of information only and do not imply endorsement by Printing Industries of America. 4 @ 4 4 4 4 4 4 4 < < « 4 « a « « « ¢ « < < a qContents Introduction 1 What Are the Current Issues? 66.00... Capacity eee ae : : Housekeeping . Best Practices a : Establish Conditions... 20.0... sere seecets = Waste Achieving Excellence»... 20. ....00- Operational Excellence... i : Performance Excellence The Shingo Model Guiding Principles for Operational Excellence . . . . Dimension One: Cultural Enablers (People) Dimension Two: Continuous Process Improvement (Process) Seascape nena Dimension Thre: Enterprise ligament Alignment : : - 10 ‘Denson! Fovar? Resulls.ti cto attechtoe ot areata agen en nee nega CE Tre Scope of Transformation Process Stability and Control... « Print Production Control and Excellence Principal Concepts and Objectives of Print Production Control and Excellence... 13 The Six Big Equipment Losses... 0.0 eee ae feeaee Semin cmenie Major Print Production and Excellence Activities ©1011... 1. 15 Print Production Excellence Main Elements... 0.0.00 e eee cee eee renee IS Key Applications of Print Production Excellence 2.60.0 00 eee eee eens 1. Maintenance Aste eee eater ate : 2. Calibration 3. Process Controls . Ten Steps to Operational Excellence: A Checklist... . 5. fe tedseedtace cea 1. Executive Management ae Beall 2. Management OPEX Champion and Committee... 6.0.0 eee ee ee 22 3. Assess Current State of Operations ‘ : Seater oe Current State Assessment Findings . : - 4. Policy Deployment: “Develop the Plan”... 20... 2. secre eee ee 32 ‘The Policy Deployment System : 32 Breakthrough Objectives... . eerste eee 32 5, Training Management and Staff... eee eens BS 6. Establish the Teams ne : 37 Team Dynamics . . eee Gees tee Hee cence eater es asec 7. Find Waste and Constraints : : : Sita 39 8, Eliminate Waste and Constraints : be eee eee eae - 40 9, Establish Standards and Controls... , eae seeds 8 10, Sustain the Gains ae : 45 ‘Ten Steps to Operational Excellence Checklist cee See seed 6Operational Excellence Programs «6... 05 e eee eee eee ee eee Shingo Model ........... Print Industry Quality Programs . About the Author About Printing Industries of America... . Printing Industries of America Affiliates . Publications of Interest from Printing Industries of America SA@ALALAAZALALZAAAAAAAARARAAAAAAABRAABRARMADRR REINTRODUCTION Printers today must slash downtime and cut all the costs they can—failure to rec- ognize the need to do this can result in extinction. To survive, printers must look. at and address production problems in terms of process issues, not personal or individual issues. ‘To improve the current state of affairs, Operational Excellence (OPEX) must become the driving forces for printers. Excellence begins with measuring pro- cesses, analyzing the information and data, then addressing what is found with objective and unbiased corrective and preventive actions. To accomplish system and Operational Excellence management, you must understand and embrace Lean thinking.WHAT ARE THE CURRENT ISSUES? Capacity Capacity is the basic ability to meet customer demands. Undercapacity indicates that there is not enough business to sustain plant processes on a continuous basis. In our usage, overcapacity means that continuous operating plant pro- cesses are unable to produce enough product to meet customers’ demands (as opposed to the traditional implication that capacity to produce exceeds customer demand) Objective: Increase capacity and reduce cost of manufacturing to increase sales and beat competition. Housekeeping Housekeeping is maintaining plants, processes, and equipment in a clean, neat, and organized manner. Objective: Improve housekeeping so all processes are in customer visitation condition at all times and people can quickly find what they need to perform their assignments. Best Practices Best Practices include seeking out, accepting, developing, and applying highly effective and innovative ways of doing things to maximize equipment, technol- ogy; and operational effectiveness and efficiency. Objective: Develop employee ownership and their sense of being personally responsible for their processes’ condition and performance. Leverage opportunities through bench= marking both internal and external best practices. Establish Conditions Establish conditions for further continuous improvement: * Blocking and Tackling—Refers to maintaining necessary conditions for processes and equipment and performing all required activities and tasks effectively and efficiently. Effectively performing the “basies” or necessary requirements for manufacturing a printed product well will automatically reduce downtime, improve changeovers, and eliminate waste. + Process Stabilization—Refers to achieving a desired state for equipment and process effectiveness and productivity through a total production 58, program. * Process Control—Refers to using operational and technical feedback data to monitor and manage the equipment and processes with manufac turer specifications and industry standards. Adjustments are made to the equipment and processes to enable compliance to specified standards and control limits Operational and Performance Excellence BAAALALAAADAALAAAAALRALZALAAAAAAAAAAARAAAMAAABAAASWaste ‘Waste is the cost of time and materials that consume resources but don’t add any value to the product or result in product that is unacceptable to the cus- | tomer, and for which they are not paying When a print job is scheduled to be produced, there are only two activities that occur: value-added and non-value-added Value-added (VA) activities are the process actions and steps that actually convert the form, fit, or function of materials and information into items and products. The customer pays for and specifies the VA activities. Examples of a printer’s process actions that change information, materials, and items and actually add value are the activities and time it takes to actually ... ¥ Output a proof VY Make a set of plates Y Print ink on substrate—one sheet, signature, carton, or label ¥ Cut one sheet, signature, carton, or label ¥ Bold one sheet, signature, carton, or label ¥ Collate/stitch/trim one book or magazine ¥ Package one job ¥ Ship to customer Non-value-added (NVA) activities are actions that consume resources but do not add any value or convert the form, fit, o function of materials and informa- tion into items and products. Customers don’t care about and do not pay extra for NVA activities. The waste and non-valuc-added activities that occur all day long are known as the Printer’s Hidden Waste. Ten Forms of Non-value-added Waste Remember with the phrase Industries Printing DOWNTIME: |. Ignorance of the Current State—Executive management really does not know the existing capabilites and conditions of equip- ment and processes. 2. Process Instability—Equipment and process conditions and capabilities are below manufacturer and accepted conditions. 3. Defective product—The costs of time and material wasted producing defective product, 4, Overproduction—Producing more than is needed and faster or earlier than the next process or customer can handle. 5, Waiting—Processes and people are waiting for other processes and people, 6. Non-utilized people—The waste of not using human resources effectively. 7. Transportation—Moving anything around the facility: distance is the enemy. Inventory—Excessive raw materials, work-in-process, and/or finished goods waiting resutt from numerous causes. 9. Motion—Any movement of people or machines that does not add value to the product or service. 10. Extra Processing—Tasks and actions that are not planned for or quoted in the job. The Shingo Model| ACHIEVING EXCELLENCE ‘The printing industry has been hearing about Lean Manufacturing or Lean for a decade now. More recently, academic institutions have latched on to it and offer Lean training to printers. The packaging segment of the printing industry has been actively implementing Lean for some time, while the com- mercial segment, for all intents and purposes, has not. Lean seemed to be a hot item for commercial printers for a while, but it has mainly cooled off. It seems commercial printer management resist a system they have to work at or develop. Typically, printers want some type of prefab- ricated, turnkey, shake-and-bake program to improve their companies magi- cally overnight, Printers feel they don’t have time to implement continuous improvements; they have too many fires to put out. That is counterintuitive: people seem to have vast amounts of time to put out the numerous fires that occur; but they don't have timne to improve their processes to prevent the fires in the first place. For printers to be successful and survive, they must produce their printed product quicker, cheaper, and better than ever before. One way is to replace current technology and equipment, which can be an expensive proposition. Another way is to address the current state of the system and processes. If printers choose to adciress the latter, they must realize there are mainly two issues that they need to address. One is Operational Excellence, or an ot- ganization’s systems effectiveness and efficiency, The other is Performance Excellence, which is departmental and process effectiveness and efficiency. Operational Excellence is when the printer’s system—the accumulated processes of preproduction, preprinting, printing, and post printing—are ‘operating and producing based on their design and intent; in other words, the system is running on all cylinders. Operational Excellence means the systems throughput (generating money through sales), inventory levels (raw materials, work-in-process [WIP], and finished goods), and day-to-day operating costs are great and getting better. ‘Two key issues for Operational Excellence are how effective and efficient a printer's operation really is. + Effectiveness is... getting the job done on time, achieving goals and objec- tives, and meeting and exceeding customer expectations * Efficiency is... how the job is done and the cost of time and resources needed to get the job done. The most efficient way often results in turning Make Note. Metric data and information helps reveal where Lean applications and continuous improvernent initiatives must be targeted to achieve Operational Excellence. out products in a better, quicker, and cheaper fashion. Achieving Operational Excellence is contingent on the efficacy of the sys- tem, the accumulated processes of preproduction, preprinting, printing, and post printing. For printers to know how effective and efficient their system is operating, they must measure and track it. Metric data and information helps reveal where Lean applications and continuous improvement initia~ tives must be targeted to achieve Operational Excellence. Operational and Performance Excellence a a a a q a 4 4q 4 a 4 4 a qd q 4 4 q q q 4 q @ @ q@ @ @ @ q q q 4g 4 q qMetrics for Tracking Operational Excellence ‘+ Throughput: The speed or velocity the system takes to produce product | and generate sales dollars (money). Throughput lead time starts when money is spent purchasing raw materials and goes through when the customer pays for the job. Throughput must be accelerated and lead time shortened. + Inventory: The costs of raw materials, work-in-process, and final product, but no payment has been received from the customer. Inventories must decrease for raw materials, WIP, and finished product. * Day-to-Day Operations Costs: All of the operating costs for admit tration, equipment and processes, building, property, and tax costs minus ‘materials and supplies. Day-to-day operating costs and time must be reduced. + Customer Satisfaction Ratio (CSR): The primary issues that determine if a printer is meeting or exceeding their customers’ expectations: frequency of customer complaints, number of job rejections, and on-time delivery rate for both the company and by customers, The CSR formula includes total number of jobs produced in a given period (month, quarter, semi-annual, | annual) minus the total number of quality incidents (customer complaints, Jobs rejected, jobs not delivered on time) divided by the total number of jobs produced. | Jobs shipped) : = Tora | 150 i 139 | 139 = 150 = 093 GR | When there are no customer complaints or job rejections and on-time delivery is 100%, then customer satisfaction is 1.00. ‘The Operational Excellence measurement formula, or OPEX, includes throughput, inventory, day-to-day operation costs, and customer satisfaction. ‘The OPEX ratio provides system performance on gross revenue. OPEX provides a balanced comparison of system performance and is a mea- sure of how well the system is generating money. ‘OPEX Calculation for One Month ‘OPEX = (Throughput? ~ finventory costs + day-to-day operation costs]) X customer satisfaction OPEX = (Sales dollars + Total costs) X customer satisfaction = OPEX Ratio ($540,000 * $475,000) = 1.137 (gross revenue variance) X 0.97 CSR = 1.10 OPEX * the amount of money generated by the system The Shingo Model 5To raise the OPEX ratio, printers must focus on the key metrics for throughput, inventory, day-to-day operation costs, and customer satisfaction. # Increase throughput, or the system generating money Raise customer satisfaction ratio ‘W Reduce inventory costs W Reduce day-to-day operation costs What Should Your OPEX Ratio Be? Obviously the higher the OPEX ratio the better Systems above I.10 OPEX will be generating a satisfactory positive cash flow. Systems below 1.00 OPEX will be experiencing a negative cash flow and be in serious trouble, ‘These companies must change and utilize Lean applications and continuous improvement initiatives for future survival. Performance Excellence Performance Excellence means that preproduction, preprinting, printing, and postsprinting processes and equipment are operating at optimum levels in terms of availability, productivity, and quality. Processes and equipment ‘must be functioning at optimum levels for quality and productivity, Everyone working within the processes are executing their jobs according to their intent or they are blocking and tackling. Performance Excellence can be achicved by systematically applying Lean thinking and eliminating all forms of waste and non-value-added activities. In order to achieve Performance Excellence, printers must measure and track ‘key metrics for performance of the value-creating processes. First and foremost, these metrics are used internally for their own goal setting, benchmarking, and continuous improvement. Performance Excellence metrics can also be used to track the variance costs, ‘or compare actual costs to projected or estimated costs. This can be done by job, customer, and process. Uf the variance is zero for setup/changeover times, cycle times, planned 1, Downtime: ‘a Schedulediplenned '. Unscheduled/unplanned job 16 the next job 2. Setup/changeover time: time it takes a process to go from one 4. Waste: planned material setup and running waste 5. Spoilage: unplanned defective product ‘waste, and spoilage rate, then the job most Metrics for Tracking Performance Excellence likely will make money. If the variances are positive, then the jobs will be completed in less time and more ‘jobs can be produced to make more money. If the variances are negative, then the job could be less profitable or not profit- able at all 3. Cycle time: tine it takes a process to produce one item Tracking variances can reveal which seg- ments to produce a job meet or exceed estimates and which don’t. The ones that don’t meet estimates are where a printer ‘must target improvement initiatives. Operational and Performance Excellence BALALLAALAALAAAAAAAAADAABAAAARALAAAAAAAAMRAABAAAn effective way of measuring and tracking Performance Excellence is through Overall Equipment Effectiveness, or OEE, OBE metrics focus on a machine’s total good production sheets items/feet per ‘minute versus running time, downtime for makeready, downtime (scheduled and unscheduled) multiplied by its factory-rated optimum speed. OBE provides a more balanced comparison between older and newer equip- ment. OEE is a measure of how well machines are utilized in relationship to their optimal designed potential OEE Calculation for 24 hour shift ‘OEE = #f of good terns? = @4 hours X factory optimum rated peed) OEE = Number of good items + (/20 hours X factory optimum iph) ‘OEE = 905,000 sheets = (120 hours X 18,000 sph), OEE = 905,000 = 260000 = 42% O€k * sheets, signatures, cartons labels Metrics direct where to focus process improvement initiatives. The goal is increasing total good product in the current time frame, ¥ Sheets Signatures ¥ Cartons ¥ Labels, Increased OEE means increased sales and revenue. ‘OEE metrics, coupled with process analysis, determine where to focus main- tenance and improvement initiatives. Reducing the five key metrics will raise ‘OEE and process and departmental performance. & Downtime—scheduled and unscheduled % Setup/changeover time (time to go from last good to first good) ‘& Cycle time (time to produce one item) ‘38 Waste—planned (startup and running waste) ‘4 Spoilage—unplanned (defective product) What Should Your OEE Ratio Be? Obviously the higher the OEE ratio is the better. Depending on job run lengths and number of setups/changeovers that occur, an OEE above 50% would be considered good. Equipment and processes experiencing OEE below 30% are prime candidates for Lean applications and continuous improvement initiatives. The Shingo ModelPERFORMING REQUIRED ACTIVITIES EFFECTIVELY AND EFFICIENTLY ‘The principal way for printers to realize Operational and Performance Excel- lence is by following a more objective methodology. First, search for the system constraints, process bottlenecks, and the causes for waste of time and materials. Then attack the problems through a more structured and systematic approach. ‘Various methods and systems exist (like TQM, Six Sigma, and Lean manufac- turing) that printers can use to attack waste and transform their organization. ‘However, one system that stands out is the Shingo Model. ‘The Shingo Model is based on the Lean thinking approach taught by Dr. Shigeo Shingo and shared by Toyota and other world-class manufacturing companies that have achieved high levels of Operational Excellence. Shingo, @ management consultant and engineer, recognized the vital philosophies needed to achieve high levels of effectiveness and efficiency. Shingo knew that real innovation and breakthrough improvement are not achieved by superficial imitation or the random use of TQM and Lean tools and techniques. Instead it requires “knowing what and why,” or understanding underlying and fundamental principles for a business (o survive. ‘The Shingo Model answers some of the nagging questions: * Why aren’t traditional improvement methods getting the benefits we expect? (Traditional methods might include actions such as purchasing new equip- ‘ment, dangling carrots in front of people, pitting one shift of employees against another, and yelling “Hurry Up!”) ‘* How can we quickly transform our organization? ‘+ Whatis the connection between the numerous models we have heard about? * Our pursuit of improvement keeps stalling—how do we get back on track? The Shingo Model first details the principles of Operational Excellence and the power of balancing efforts across all the dimensions. Next is the transfor- mation process for embedding the principles of Operational Excellence into the organizational culture. ‘The Shingo Model characterizes the connections between known methods and techniques: Six Sigma, Total Quality Management (TQM), Jast In Time JIT), and Lean. It is designed as a baseline to help print managers identify their company’s current state and their own behavior before attempting to reach for Operational Excellence. Then they can assess the current state to determine the transformation path their print facility needs to undertake, ‘The Shingo Model goes even further with the Shingo Prize for Operational Excellence, The intent of the Shingo Prize and assessment is to evaluate the degree to which the organization is aligned with the Shingo Model principles, of Operational Excellence. The assessment evaluates results as well as behavior. Each business process will be assessed according to the entire model (i.e., to all dimensions and principles therein), with a primary focus given to particular dimensions and principles of the model as indicated in the following pages. Each dimension of the model is scored on a scale from one to five according to level of maturiey Operational and Performance Excellence AAA AAAAHAA RHA DHHABHBAHAHAHAHHHAKBABHAAAAAKHKARHRTHE SHINGO MODEL GUIDING PRINCIPLES FOR OPERATIONAL EXCELLENCE imension One: Cultural Enablers (People) Cultural enablers make it possible for people to move forward in understanding Shingo’s guiding principles, engaging in organizational transformation, and creating a culture of Operational Excellence. + Respect Every Individual—Respect is a principle that enables the development of people and creates an environment for empowerment, * Lead with Humility—Support long-term relationships, develop people, empower and involve everyone, and assure a safe environment. Dimension Two: Continuous Process Improvement (Process) Continuous improvement begins by clearly defining value in the eyes of customers, both internal and external. Expectations must be clearly and unambiguously communicated so that processes can be designed to meet customer needs. Every employee must know “what good is” and what to do if the process is not creating good product or providing good service. + Focus on Process—A process focus recognizes that all outputs and the customers? expectations—whether product or service—are affected by the processes’ inputs—people, machine, information and materials, and methods and techniques, + Embrace Scientific Thinking—Scientific thinking is results-based, plac- ing a premium on defining and communicating desired outcomes throughout the organization. ¢ Flow and Pull Value. + Assure Quality-at-the-Source—Ensure everything required for a pro- cess to produce superior value is correct, functioning properly, and easily accessible * Seek Perfection: ¥ Stabilize processes by instituting total production maintenance and process control, ¥ Employ direct observation (Gemba, go to where the action is and assess current state) ¥ Rely on data through metrics, measurements, and statistical analysis. Y Standardize processes with Standard Work and best practices. ¥ Focus on the value stream of key customers. 7 Remember to keep-it simple and visual through 5S and visual management. Make Note... Every employee must know. “what good is" and what to do if the process is not creating ‘good product or providing good service. ‘The Shingo ModelNOTES ¥ Identify constraints and waste, then eliminate them through continuous improvement initiatives. Dimension Three: Enterprise Alignment (Alignment) One of the most significant failures of modern management education is its focus on strategy and planning without considering execution. To succeed, or- ganizations must develop management processes that align activities with both philosophy and direction, in ways that are simple, comprehensible, actionable, and standardized. Individual leaders cannot develop individual approaches to management without introducing massive waste into an organization, + Create Consistency of Parpose—Management must be in agreeient on philosophy and strategy, which will provide a unifying vision, + Think Systematically—Systematic thinking unifies principles of Opera- tional Excellence. Thinking systematically takes into account seeing the “big picture,” recognizing that the current state is the result of interactions over time, and understanding how changes will ripple across the printer’s system, ¥ See reality. ¥ Focus on long term. ¥ Align systems to increase throughput. V Align strategy to add value and support the systems Dimension Four: Results ‘The basic principle of the Results dimension is that businesses must flow value, with value typically defined as something for which customers are willing to pay. ‘Therefore, the definition can include many stakeholders: customers willing to ay; investors willing to invest; communities willing to support; and employees, willing to commit their trust, confidence, and careers. Operational Excellence creates the flow of value to all stakeholders, improv- ing customer satisfaction and stakeholder value, while maintaining a safe and healthy environment, * Create Value for the Gustomer—The organization must focus on cre~ ating value for the customers. Drive all aspects of value, including quality, responsiveness to customers, and return to stakeholders. + Measure What Really Matters—Lean-thinking leaders suggest opera- tional and process measurements are needed, Measurements and data must bbe tied directly to strategic priorities and be simple and easy to capture, * Align Behaviors with Performance—Behavior that we know drives Make Note... ‘Value is typically defined simply as something for which custom ers are willing to pay. the right long-term effects must be consistent across the organization, Desired results will happen when people and processes are aligned with the guiding principles of Operational Excellence. + Identify Cause-and-Effect Relationships. 10 Operational and Performance Excellence MABAAAAADAAAAAADAAAAAAALAAAAAARALAADAAALRALAKRBRAMSCOPE OF TRANSFORMATION ‘The principles of Operational Excellence must be applied across all business and management processes. The center of the scope of transformation within an organization includes all basic customer-facing business processes and all | management support processes. The five typical business area processes in- clude the following, 1. Customer Relations Processes Seles eee “Aajvertsing and Promotion ‘Customer interactive Communications ‘Order Processes and Tracking Responsive and Flexible Scheduing Invoice and Collections Warranty 2. Product and Service Development Process Defined Customer Value Market Segment and Selection Research Development of Products and Services New ProductiService Launch 3. Product Realization Process Product/Service Delvery ‘ater Management Process Engineering Maintenance Quality Assurance and Rekabiity “Testing and Anahi 4. Supply Processes Supplier Selection and Qualification Supplier Development and Partnering Procurement Process Logistics 5. Management Support Processes Recruiting ‘Compensation and Benefits Employee Training and Development Employee Relations and Satisfaction Capital Budgeting Budgeting Foancial Reports The Shingo Model NOTES12 Management and Accounting Reporting Accounts Receivable (AR) and Payable (AP) ‘Asset Management Computer Systems and Support “Computer Applicaton Design and Sup Networking Systems and Support The Shingo Model principles must be applied across all business and opera- ial processes. The scope of transformation includes business and opera tional components and management thinking, Processes associated with each business area must include customer relations, product/service development, operations, supply, and management support. ‘The Shingo Model is a set of principles and tools, but its success is dependent 1. How well printing management understands and embraces the Shingo Model's purpose and scope. 2. Understanding that to provide consistent and quality products and services, printers’ equipment and processes must be under control and realistically stable. 3. Management's participation, support, and diligence to the Shingo Model culture. Operational and Performance Excellence as DBABAAADAALAAAADDRABDRAABALALAARABEABAD EMDPROCESS STABILITY AND CONTROL Print Production Control and Excellence Graphic arts companies supply printed products intended to at least satisfy their customers’ requirements for quality and service. Increasing global com- petition has led to the highest levels of customer expectations with regard to quick turnaround time and quality. To achieve a true competitive edge, printers must maximize their production performance and then keep it at that level. “The most effective way a graphic arts company can maintain its competitive edge is to achieve operational stability by employing effective and efficient control systems. Such systems must result in proper process, equipment, and measurement instrument operational effectiveness, as well as continual im- provements in quality, production throughput, and increased satisfaction of the company’s customers and the shareholders (employees, owners, and supplier). Onc of the most recognized quality system standards is ISO 9000; its defini- tion of quality includes quality of product, as well as quality of service: “The totality of features and characteristics of a product or service that bears on its ability to satisfy @ given need.” For graphic arts companies, this ISO 9000 definition can be interpreted as “exceeding their customers’ expectations of both quality conditions of the reproduced product as well as quick cycle time delivery.” The quality maintenance system of any graphic arts company is influenced by the objectives of that company, by the quality of its products, and by the best manufacturing practices specific to the company. The major purpose of maintenance and process control is to improve the systems and processes so that continual improvement of quality and productivity can be achieved. Principal Concepts and Objectives of Print Production Control and Excellence ‘The graphic arts company’s key objectives and responsibilities for achieving quality throughput are to: ¥ Continuously improve the quality of its products and processes based on customer requirements for quality and service. ¥ Pursue ideal conditions of its own operations so as to continually meet or exceed all customers’ expectations for quality and productivity ¥ Provide confidence and expertise to its internal management, staff, and production teams so that the requirements for productive quality can be fulfilled and maintained. ¥ Give the confidence to customers that the Print Production Control and Excellence Quality Standards in place will assure that specified require- ments for quality reproduction will be achieved in the delivered product. Make Note... ‘The most effective way a graphic arts company can maintain its competitive edge is to achieve ‘operational stability by employ- ing effective and efficient control systems. The Shingo Model 13Make Note... The difference between the manufacturers optimum equi ment speed capabilites and what ‘equipment actually produces per hour can be significant. The Six Big Equipment Losses ‘There are six losses that equipment and process will experience while in scheduled operations mode. 1, Equipment Failure/Downtime. There are two basic types of equip- ‘ment failures and losses: sporadic failures/losses and chronic failures/losses. 2, Setup and Adjustment (Changeover). Equipment changeover is the time lost when changing over a process from the last good item of one job to producing the frst good item of the next job. Shorter run lengths require ‘more equipment (presses, cutters, folders, collator/stitchers, ete) setups, and. changeovers and, therefore, result in more lost time. 3. Equipment Idling and Minor Stops. The difference between the ‘manufacturer's optimum equipment speed capabilities and what equipment actually produces per hour can be significant. One of the greater causes for lost equipment production, time, waste, and spoilage is from idling and minor stoppages. A minor stoppage occurs when equipment production is interrupted by a malfunction, quality problems, or material abnormali- ties. Examples include feeding trips; feeding and delivery jams; changing loads (feeder and delivery); web folder or sheeter jams; cleaning various printing components—plates, blankets, dampening systems, dirty sensors; and replacing broken feed tapes. These temporary stoppages are not really breakdowns; they are small production interruptions. Returning the press to normal production i easily achieved by replacing materials and cleaning or resetting press components. 4, Reduced Running Speeds. The difference between the manufacturer's recommended optimum equipment speed and the actual equipment pro- duction per hour during production is reduced equipment speed. Running the machine at less-than-optimum capacity creates loss, 5. Defective Product (Unplanned Spoilage). Defective productis a major contributor to loss of production and profit. The cost of defective product can quickly turn a profitable job into a loss, Defective final product losses include cost of work-in-process materials and labor, extensive inspection staff, production bottlenecks in the inspection area, cost incurred to handle nonconforming product, cost of reruns, and defects in jobs created in one process which cause a production bottleneck in the next process. 6, Reduced Equipment Yield (Planned Startup and Running Waste). Startup losses are the loss of time and materials following equipment makeready during initial production startup when equipment is running at reduced speed. At this time, image register, fit, and position adjustments and ink color tweaking are still being conducted to stabilize the production ran. Recognizing the six equipment losses and their impact on overall equipment effectiveness is the first major step in eliminating them. The next sep is doing something about it. That can only be done through a combined scientific and systematic approach. 14 Operational and Performance Excellence BAMAAAAAALAAAHALAAADAAAARAAAAAAALALARAAARALADMajor Print Production Control and Excellence Activities ‘The major Print Production Control and Excellence development activities should focus on eliminating the six big equipment losses. ‘These activities should focus individually as well as in combination on the equipment and system constraints that the company usually experiences. By focusing Print Production Control and Excellence concepts and employee teams activities in combination, many hidden problems affecting the six big equipment losses, may be revealed. The main Print Production Excellence (PPE) activities for improving productivity and throughput should include the following: 4 Educate all employees in the concepts and intent of Print Production Excel- lence Accreditation, ¥ Form employees into one or more PPE team/s through organization. o Assure safety. Reduce equipment breakdowns with an effective autonomous maintenance program. ¥ Increase quality production and work-in-process inventory through reduced makeready. ¥ Determine restoration requirements by conducting equipment precision diagnostics. ¥ Constantly monitor equipment and process performance. ¥ Reduce costs with realistic materials procurement and conservation. ¥ Blevate the key processes and equipment to maximize their effectiveness ¥ Extend the productive life of the key process equipment and measurement instruments. ¥ Expand the knowledge and skill levels and increase morale of all of the company’s employees through company-wide communication, skills analysis, and training Print Production Excellence Main Elements ‘The main elements for achieving Print Production Excellence within the graphic arts company’s process include applying the key maintenance, calibra- tion, and process control concepis of PPE. These key concepts provide the basis for how PPE is implemented within the company’s process and should always bbe kept in mind for an effective implementation and maintenance of the PPE, system, as well as to achieve the optimal levels of quality product output in the preproduction, prepress, press, and postpress processes. his necessary to identify the key components of the company’s manufacturing process and technical system operation. Every printer has process inputs (X Inputs), such as job specifications, job information, digital files, films, proofs, plates, stock, ink, ete. The process outputs (Y Outputs), or the reproduced products and how the customer expects them to be, are the results of the process, The process output itself is a conversion that creates product or adds value to the product. Every process involves people and other resources in The Shingo Model NOTESNotes 16 some way for it to output a quality product. There are opportunities to make ‘measurements on the inputs and at various stages in the process, as well as on the final outputs. ‘The key input/output components include + Hardware: All equipment, tools, and measurement instruments required to manufacture the required product for the graphic arts company. * Software: All of the software, data, specifications, information, and proce- dures required for the operation of the printer's specific hardware, + Process materials: All of the necessary materials, chemistry, and supplics required for proper output of the printer's specific product, ‘¢ Methods: Operations and servicing which includes the proper maintenance, calibration, process controls, and training necessary to at least maintain necessary conditions of the company’s equipment and processes, * People: All of the company’s employees who are required to plan, super vise, manage, and operate the components of the graphic communications process. ‘The basic formula for system integrity is that ¥ Outputs equal the func- tion of the X Inputs. X Inputs: People, equipment, materials, methods, and environment. Y Outputs: Customer expectations; quality meets or exceeds require: ments:job delvered on time in correct arnounts ard realist cally piced Y Cutouts = function x X Inputs ‘The key contributors to product quality are identified as follows: 1. Quality due to customer specifications and expectations for the reproduced product. A company’s customers will often define their quality requirements and expectations through specifications or attributes ‘Typical specifications and attributes may include the quality of the repro- duced product: Digital files forwarded into the reproduction process in produetion-ready condition ¥ Halftone image line screen ruling ¥ Film image trapping ¥ Visual comparison or match to proofs, samples, or standards ¥ Ink density variation limits Spectrophotometry curves ¥ Limits on the number of hickeys and spots Operational and Performance Excellence 4 4 4 4 4 4 q 4 4 4 a 4 @ 4 4a 4 4@ @