Introduction to

Process Redesign
A methodology to identify customers, discover their
requirements, and find the best solutions
Objectives

 Introduce the Redesign Roadmap

 Introduce Redesign Tools
 Understand when to use the Redesign tools
Why Do We Need a New Roadmap? I Chart for Thicknes

 Six Sigma in the past offered: 30 UCL=30.57

Individual Value
– Excellent data analysis tools Mean=22.03

– Exquisite improvement tools

20

LCL=13.48

 But what is missing?

10
0 50 100 150
Observation Number
– How to determine who the customers are
– Help to develop the soft skills needed to gather customer
information
– Tools to analyze word and picture data
 Redesign gives us a collection of tools to provide those missing
pieces:
– Customer Value, Identification, Value Chains,
– Interviewing skills, KJ
– QFD, Concept Generation, Pugh Concept Selection
Process Redesign

 Degree of Change for Process Improvement

– Control: Reduce variation and associated risks through the
establishment of solid process control
– Optimize: Identify optimal conditions to improve critical
process steps
– Improve: Redesign process flow to improve capability and
eliminate non-value added time
– Redesign: Change strategy, technology, policy to make
step-change improvements in process capability and value
– Design: Change strategy, technology, policy to make
radical improvements in process capability and value
Six Sigma Project Tracker

Project Tracker
Revision 7 Project Start Date: 1/1/2012 Project Type
Project Throughput Time (days): 180 Improvement
Review 6 Sigma Develop
Databases Data Collection Project
Project Hopper and Sponsor Role for like projects Plan for "Y" Schedule Launch Charter

Identify 'Y" and

Define draft charter
Charter Approved

Data Collection
C & E Matrix or 30 Day MBB Preliminary Plan for Key
Process Map FTA Review FMEA or FTA MSA "Xs" MBB Review

M easure
1/2/2012 1/16/2012 1/23/2012 2/6/2012 2/20/2012 2/20/2012 2/20/2012
Initial
Capability Improvements Contract
Study Multi-Vari Defined MBB Review Approval

Analyze
3/1/2012 3/26/2012 3/26/2012 3/26/2012 3/26/2012
Single or Multi Legend Completion
Factor Tests Improvements 2/3/2012 check
(DOE) Implemented MBB Review
Actual 2/1/2012
Improve completion date Planned
completion date
5/10/2012 5/10/2012 5/10/2012
Hand Off Final Project
Training/Process Final Capability Final FMEA Presentation & Project Sign-off
Control Plan Owner Sign-off Study Revised RPN MBB Review Report & Closure

Control
5/30/2012 6/11/2012 6/11/2012 6/14/2012 6/19/2012 6/19/2012 6/29/2012
Requirements Process Solution
Redesign map is calculated separately
(Use as required) VOC/VOB Analysis Redesign Design
with no dependencies on other block
Redesign dates

Enter Start Date Here

Six Sigma Project Tracker
Redesign Project Name
Project Tracker Revision 7 Project Start Date:
Project Throughput Time (days):
1/1/2012
180
Project Type
Redesign
Review 6 Sigma Develop
Project Hopper and Databases Determine Project
Sponsor Role for like projects Team Schedule Launch Charter Kickoff Meeting

Identify 'Y" and Charter

Define draft charter Approved

Cross Stakeholder
Functional Selection Discussion Stakeholder
Value Chain Process Map Matrix Guideline MBB Review Interviews MBB Review

M easure
(VOC/VOB)
1/9/2012 1/9/2012 1/16/2012 1/23/2012 1/23/2012 2/20/2012 2/20/2012

Requirements Concept Concept Contract

Image KJ KJ Survey / QFD Generation Selection MBB Review Approval

Analyze
3/5/2012 3/19/2012 3/26/2012 4/2/2012 4/9/2012 4/9/2012 4/16/2012

Lean Process Transition FMEA / Risk Improvements

Mapped Plans Assessment Trial Process Implemented MBB Review

Improve
(Redesign)
4/30/2012 4/30/2012 5/7/2012 1/2/2012 5/28/2012 5/28/2012

Hand Off Process Final Project Project Sign-off

Control Plan Training Owner Sign-off MBB Review Presentation & Closure

Control
6/4/2012 6/11/2012 6/11/2012 6/11/2012 6/18/2012 6/25/2012
Example project
 Reduce impact on Build plan due to Materials Planning
related issues from 95 Orders / day to < 20/day.
 Alan Peacock - Darlington Rating of Importance to Customer 10
1
6
2
8
3
7
4
7
5
9
6
Process Step Process Input Potential Failure Mode
Potential Failure
Effects
S
E
V
Potential Causes
O
C
C
Current Controls
D
E
T
R
P
N

How well can you

How severe is the

FM?
How often does
cause or FM occur?

detect cause or
effect to the
customer?
What is the What is the process In what ways does the Key What is the impact on What causes the Key Input to What are the existing controls and

Inventory Holding
Updates Supplier

Premuim Freight
process step input under Input go wrong? the Key Output go wrong? procedures (inspection and test)
associated with investigation? Variables (Customer that prevent either the cause or the
the process input Requirements) or Failure Mode? Should include an

Hold Engine
under internal requirements?

Request for
SOP number.

Repromise

Schedules
investigation?

Request

Request
Managing Insufficient resource TBA/Re-promised unplanned absence No Control

TBA's
material issues Order
Planner Knowledge / 10 10 10 1000
from Factory
Process Step Process Inputs Total Planner Skills / Availibility

$
Insufficient resource Re-promise Order unplanned absence No Control
1 Resolve Production Issues Inventory discrepancy (negative) 9 9 9 3 9 9 381 1 Manage 6 day
10 10 10 1000
2 Resolve Production Issues Company Scrap (Incl Engines) 9 9 9 3 9 9 381 2 shortage report Planner Knowledge /
Skills / Availibility
3 Resolve Production Issues Delivery Rep query 9 9 9 3 9 9 381 3 Managing Not relected on POF Re-promise Order EDI schedule sent Thursday - No Control
4 Managing material issues from Factory Planner Engineering Change/DCN (wkly) 9 9 3 9 9 9 375 4 material issues
Material Availability 10
POF updated Friday
9 9 810
from Factory
5 Manage 6 day shortage report Job 1 Deviation 9 9 9 9 9 3 369 5 Planner Information
Managing Not relected on POF Re-promise Order System assumes OK as outside No Control
6 Manage 6 day shortage report VOR Request 9 9 9 9 9 3 369 6 material issues leadtime on Friday. POF not
10 10 8 800
7 Resolve Production Issues VDM Tickets 9 9 9 0 9 9 360 7 from Factory Material Availability updated as planners not
Planner Information informed. Monday inside L/T.
8 Managing material issues from Factory Planner Customer/Customer Services Input 9 9 0 9 9 9 351 1 Misinterpretted by Planner Re-promised Order via System does not down-date No Control
9 Managing material issues from Factory Planner Planner Knowledge / Skills / Availibility 9 9 0 9 9 9 351 2 Manage 6 day
BCA
10
receipts real time
10 8 800
shortage report
10 Managing material issues from Factory Planner SOP's 9 9 0 9 9 9 351 3
In Transit Details
11 Managing material issues from Factory Planner Supplier profile 9 9 0 9 9 9 351 4 Insufficient resource Held engine unplanned absence No Control
12 Resolve Production Issues Planner Knowledge / Skills / Availibility 9 9 9 9 9 1 351 5 Manage 6 day
8 10 10 800
shortage report Planner Knowledge /
13 Manage 6 day shortage report In Transit Details 9 9 9 9 9 1 351 6 Skills / Availibility
14 Manage 6 day shortage report Planner Knowledge / Skills / Availibility 9 9 9 9 9 1 351 7 Managing Insufficient resource TBA/Re-promised Wokload exceeds resource No Control
material issues Order capacity
15 Manage 6 day shortage report SOP's 9 9 9 9 9 1 351 8 from Factory Planner Knowledge /
10 10 8 800

16 Priority Planning (Review MRP Schedules) MRP Parameters 9 9 0 9 9 9 351 9 Planner Skills / Availibility
Insufficient resource Re-promise Order Wokload exceeds resource No Control
17 Managing material issues from Factory Planner Unmatched Schedule report 9 9 9 3 9 3 327 10 capacity
Manage 6 day
18 Managing material issues from Factory Planner Material Availability Information 9 9 0 9 3 9 309 11 shortage report Planner Knowledge /
10 10 8 800

19 Priority Planning (Review MRP Schedules) Material Direction/Policy (Inv Targets) 9 9 0 9 9 3 297 12 Skills / Availibility

Process Map C&E FMEA

:
Assessment Agreement

Within Appraiser

100 [ , ] 95.0% CI
Percent
Percent

95

90

RDZ SM
Appraiser

MSA Initial capability

 Stakeholder discussions
Customer Visit Discussion Guide

1) How can communications be improved between you and materials group??

Supplier:-
 Explain how you use schedule information.
All :-
 How could responses from supplier be received quicker?
LT DM GS PG PN MH MC JP JM AW LDP Holset Conc Allen Gr Bosch
03-Oct 07-Oct 15-Oct 13-Oct 7-Oct 9-Oct 9-Oct 8-Oct 13-Oct 10-Oct 14-Oct 09-Oct 16-Oct 16-Oct 17-Oct 2) What is the main problem you experience with material planning process??
1:30pm 2pm 2pm 2pm 10am 8:30am 9:30am 10am 9:30am 2pm 9am 1:30pm 1pm call 11am call 2pm call  Main frustration for you.
AP I I I S I I
 Biggest cause of bad publicity for planning team
 Biggest time waster for you
LP S I I S I I I  What would you most like to see improved?
CP O I S O O I I
3) How could your job be made easier/quicker/less cumbersome in relation to
material planning??
AR S O
 Automate tasks.
MW O O S  Expand on repetitive tasks
SP O S O I I  More efficient.
GH S
4) What information do you expect from material planning process??
PW O S S  What do you currently get you don’t need
JT  What is essential
JN S O S S
 What do you currently not get that would be beneficial?
 Any information not received frequently enough.
RH
CB S O 5) What consumes most of your time in respect to material planning??
GM O  Expand on none value added tasks
 Why does it take so long
 describe tasks running too frequent

Leave time at the end to let the person talk:

Stakeholder / Customer Matrix

1. This is the end of the interview. Before we go, is there anything you would like to tell
us?

2. If we decide to consider changes to our present Material Planning processes, would

you mind if we contacted you to verify we are on the right track as we develop
potential solutions?

Interview Guide 3. Is there anyone else we should talk to?

THANK YOU !!
Image KJ
By consolidating & improving material
What scenes and images describe issues
reporting and planning processes we
with current Material Planning process
will reduce the impact on the build plan
due to materials related issues

Reporting Must be changed

Build Plan Changes must be for simplification and
Need to work consistently smarter
controlled and understood accountability
Line setting engines Expedite Report should Roles, Resp.
Information should be
should not require so be accurate and easy to Today's issues should expectations should be
extract in right form
much effort None integrated Quality of use.
data changes not affect today's build clear
Why so many Planners Lone Back to basics
to release today’s reporting from good to bad.
Wolf’s
Promise dates are 6 day shortage not run (MRP/SOPS)
engine!!! Its hard getting POF/TBA’s not resolved causes problems today
always changing
Too many engines Held information from cause expedite report to not tomorrow What is my job ?
put of lineset. Engine build movement mainframe grow Delivery
Pulling engines from is out of control TOO LATE !!
Expedite report is
tomorrow into today (70 Like to have a data mart Need time to improve
Forecasting is poor frustrating
per month not started) Lots of manual Lots of manual processes
calculations calculations 7 Step NOT DONE
Poor escalation in
materials No time for
A lot of work is labour improvement
Lone intensive - but all is
needed. Job has changed,
Wolf’s
Require a new
people may not have
automated measurement Too many reports
system
Inventory Reporting and
Targets must be clear and
consistent
Lone Wolves
£4.5M (material) $4.5M Guess Current inventory
(Finance) targets Lone Wolf

Supplier Com’s should

be flexible
Daily and weekly
schedule capabilities

Day 1
Wk 27
Day 2
Requirements
Day 3

Day 4
EDI delivery frequency -
Day 5
Consider all suppliers
(Holset : our schedule is
too late for their MRP).
Translating into Requirements
Translation Worksheet Number
Name
Customer Voice:
Improve IMS system

Any KJ Images:
Getting information from mainframe. Back to basics. Reduce
number of reports. 6 day shortage not run caused problems today
not tomorrow. A lot is non value added but all is needed.

Key Items: Customer Requirement(s)/Needs(s):

Legacy systems 1. Build checks into system for data accuracy
are not very user
2. Consolidate information onto fewer screens e.g. part number
friendly
attributes and display existing details before update.
3. Validate security on existing transactions
4. Increase functionality to allow automation of routine
processes.
5. Allow simulation of supplier schedule changes and assess
impact on build plan (HIAC in USA - maybe)
Customer Requirements KJ
What are Customers perceived requirements to By consolidating & improving material reporting and
improve supplier scheduling and physical product flow planning processes we will reduce the impact on the build
plan due to materials related issues

Effective Reporting Planner Tools and Capabilities

We must Planners must We must have
Reporting should We must ensure We must develop We must
improve adopt a consistent
be all inclusive appropriate smart objective maximise
inventory common decision making
and concise people have for planners integration
reporting approach to and common
view and update location cross within the info.
Consolidate
Users require material
access to CPMS must be and inter planning tools
Onto fewer
capability to filter the Availability of planning Agree
SOP’s developed material planning utilised to set departmental screens e.g. part
data to limit the evaluated communications
and implemented = systems SMART no. attributes
amount of output inventory process plan/rules
common approach objectives
Re-calculated and display
that is specific to Capability of between
adapted by all Validate security regularly existing details
Users require
them to see predicting month Cross functional
planners)
Develop skills on existing (Targets), with departments
different views of the end performance Develop before update
matrix for transactions planner input agreement must Incorporate in-
data to meet different throughout Data needs to individual
planning group be made on all transit details into
needs Mth/Qtr/Yr. be secure from planner targets
and maintain up- pull forward
change (Read based on planning process
Develop an to-date training requests.
only) statistical All users need to Integrate
automated plan analysis understand their con.stock and in-
notification report to
role in any transit onto
allow max time to de-
Develop an decision making. planner reports
expedite material Develop an agreed
exception report
cross functional
to highlight Allow simulation of
decision making
potential over- supplier schedule
process to minimise
buys/xno changes and assess
E&O exposure due to
purchases impact on Build Plan.
cust cancellations

Daily
We must We must
Investigation improve Scheduling improve our
Material Procurement the use of Lone supplier
Capability daily Wolves delivery
Process schedulin management
We must understand Expedite We must g and
timings
process must consider non- Allow
reasons for change should performance
be reinforced engine build Introduce daily simulation
to promise dates maximise reporting
Automated
and users re- requirements in scheduling of supplier
supplier buckets supplier delivery
educated our material schedule
Acc Rep needs to communica Update POF measurement
Validate and re- planning process changes
be able to measure Clear Flexible manning
tion from factory system to enable
issue expedite and assess
number changes to process/guideline patterns
windowsto planner outside supplier
Supplier impact on
promise dates by process
s for selling support L/Ts to performance
Escalation receive call off build plan Development
Cust “promise” production parts worldwide supply
Develop managementof
requirements (HIAC inan an exception
base (Planning
decision if TBA which do not USA) …..
agreed and based receiving
Area)
Realign timing of
for 2nd day
Ensure change prior to cross
maybe report (late
Lone report to support
escalation delivery functional receipts)
worldwide supply Materials should
Wolves process is used base
(Leyland?)
Agree and decision
Improve analysis making be in plant a
publish rules minimum of 24
on part usage / Call off process to
relating to call off hours prior to start
requirements minimise
future demand of production
should not E&)
More traceability
exceed exposure
for demand and
schedule due to
supply variation /
without prior customer
change
agreement from cancellatio
supplier n
Quality Function Deployment (QFD)

Measures

# Parts reported short on day of build

Inv Targets vs Actual (plan & AOP?)
Supplier Delivery performance
Supplier Schedules in arrears

Company weighted imp

# Engines held from Lineset
# Repromised engines/day

# GT 2 days awaiting TBA

Avg Days to resolve TBA

Competition 1 (N/A)
Competition 2 (N/A)
# Parts delivered Early
# Parts delivered Late
Importance Rating
PFR $ (Per Engine)

%POF not updated

Ratio to target
# TBA's/day

DEP Now

Target
E&O$
Customer Needs
Maximize, minimize, or target (+,-, " ") - - - + + - - - - - - - -
Introduce daily call-off/leadtime 10 1 0 1 0 3 0 0 0 0 1 9 0 9 9 0 5 10 100
Agree and publish rules relating to call-off 10 1 0 1 0 3 0 0 0 0 1 9 0 9 9 0 5 10 100
Automate POF update from FP outside leadtime 9 3 3 0 0 1 0 3 0 0 0 1 0 0 0 0 5 10 90
Single source of data for management inventory reporting 8 0 3 0 0 0 3 0 0 0 0 0 0 0 0 0 3.5 10 80
Develop individual planner targets based on statistical analysis 8 0 9 0 0 0 9 0 0 0 0 0 0 0 0 0 4 10 80
Develop an agreed cross functional decision making process to minimise E&O exposure due
8 0 to customer
9 0cancellations
0 0 9 1 0 0 0 0 0 0 0 0.5 5 10 80
Exposure reporting for demand based on forecast only 8 0 9 0 0 0 9 0 0 0 0 0 0 0 0 0 5 10 80
Improve analysis on part usage/future demand 9 9 3 0 0 1 9 3 3 3 0 0 3 0 0 0.5 4 8 72
Automate supplier delivery measurement system to enable supplier performance measurement
8 0 0 3 0 9 3 3 0 0 9 9 0 3 3 0.5 4.5 9 72
Requirements
Users require to see different views of the data to meet different needs 7 1 3 3 3 3 3 3 3 3 1 1 3 1 3 0 3 10 70
Review timings within current process (and escalation process). 7 1 1 0 9 0 0 9 9 9 0 0 9 0 0 0 5 10 70
Users require a single source of data which can generate all reports (including intransit & 9cons stock) 0.5 3.5 7 63
Allow simulation of supplier schedule changes and assess impact on build plan 8 1 3 3 0 3 3 3 0 0 0 3 0 0 0 0.5 3.5 7 56
Integrate consignment stock and intransit onto planner reports 10 9 9 9 0 0 0 3 3 1 0 0 1 1 0 1 5 5 50
Validate and re-issue expedite process 10 3 1 0 9 0 0 9 9 9 0 0 9 0 0 1 5 5 50
More traceability for demand and supply variation/change 9 3 9 0 0 0 1 3 1 0 0 0 1 0 0 1 5 5 45
Users require capability to filter the data to limit the amount of output that is specific to them
7 1 3 3 3 3 3 3 3 3 1 1 3 1 3 0.5 3 6 42
Consolidate information onto fewer screens 9 1 3 0 0 0 0 3 3 3 0 0 3 1 0 1 4.5 4.5 40.5
Development of an exception based receiving report (late receipts) 8 1 0 9 0 1 1 3 0 0 0 1 0 9 9 1 5 5 40
Agree communication plan/rules between departments 5 3 3 0 1 0 1 3 1 1 0 0 1 0 0 0.5 4 8 40
Users need to see exception reports which show current and potential problems 9 3 9 3 3 1 3 3 3 3 0 0 3 3 9 1.5 4.5 3 27

7 14 5 5 5 12 9 6 6 3 7 6 7 8

Priorities
 Solution Design
 The team developed a
Design Document
Name : Incorporating Consignment Stock for
MRP and FP netting for inventory management
Author : P L
Narayanan
Version : Ver 1.0

concept and wrote a design

document to support the IT Business View

Problem Description
Cummins Darlington’s inbound materials are primarily classified as consignment stock and non-

and other implementations consignment stock. While stocks for both these material types are maintained by an external warehouse
(Autrons), this material classification is for transfer of ownership and payment purposes. Payments for
consignment stock are made on consumption i.e. when materials are pulled by Cummins from the
warehouse.
Currently, receipts of consignment materials at the Warehouse are not forwarded by Autrons to
Cummins till the materials are actually pulled by Cummins, resulting in minimal visibility about
consignment inventory at the Warehouse. Therefore, during MRP run, these receipts (against
schedules) are not considered and planners have to manually account for these inventories at the
warehouse. These stocks are considered as arrears (which are either material requested from supplier
but not consumed by Cummins or material not received from suppliers against schedules).

The aim of this activity is to provide visibility of the consignment stock at warehouse to MRP and FP.

Requirement
By providing visibility to consignment stock to MRP and FP, the stock positions would be maintained
accurately, relieving the planner’s time to reconcile and check manually for consignment inventory at
the warehouse, before sequencing line sets.
MRP should recognise the warehouse actual inventory (based on supplier receipts and issues to
Cummins based on pull generated by AIMS) and after netting off, generate accurate supplier schedules
for future requirement.
Currently, since these inventories are not tracked, planners have to manually segregate the arrears and
determine whether enough inventories are available at the warehouse for their six-day planning cycle.
The requirement is to provide Cummins systems with information on receipt of consignment stock so
that the MRP schedules can be down-dated and inventories updated only on pulling of materials.
For non-consignment stock, inventories would be updated on receipt of materials at the warehouse.

Technical View

Current Process
Currently, receipt of consignment inventory at the warehouse is not transmitted to Cummins. Only End
of day stock of parts are sent, which are used by material planners to manually update the Cummins
systems as POF arrears.
Summary

 Introduced the Redesign Roadmap

 Introduced Redesign Tools
 Reviewed when to use the Redesign tools