Successful Lean Implementation Through Strategic Selection, Execution and Continuous Improvement. Martin Nazareth & Mark Keneipp

Transcription

1 Successful Lean Implementation Through Strategic Selection, Execution and Continuous Improvement Martin Nazareth & Mark Keneipp A

2 Topics Introduction Alcoa & ABS Overview Autonomous Maintenance (AM) What & Why Autonomous Maintenance Where to Focus Overall Equipment Effectiveness (OEE) Summary & Discussion 2

3 Alcoa Global Primary Products North America: Smelting 2.8M tonnes Refining 2.3M tonnes Latin America: Smelting 0.3M tonnes Refining 2.6M tonnes Europe: Smelting 0.6M tonnes Refining 1.3M tonnes Smelting 0 6M tonnes Key Facts (2006) Australia: Smelting 0.4M tonnes Refinery Refining 7.8M tonnes Smelter Stand-alone bauxite mine 26 Smelters on 5 continents 99 refineries on 4 continents 3.6 mmt Aluminum Production 11% of world output 15.1 mmt Alumina production 23% of world output $8.9 billion in 3 rd Party Revenue 3

4 Alcoa Business System (ABS) GOALS: Best Quality Lowest Cost Shortest Lead Time KEY IS: Thorough Elimination of Waste JUST-IN-TIME Continuous Flow Pull System Takt Time Leveling ( Heijunka ) Standardized Work AUTONOMATION ( Jidoka ) Machines Stop and notify of Abnormalities Separate Man s work & Machine s work Continuous Improvement ( Kaizen ) Stability (e.g., Equipment Reliability, Stable Processes, Quality Materials) PEOPLE 4

5 Topics Introduction Alcoa & ABS Overview Autonomous Maintenance (AM) What & Why Autonomous Maintenance Where to Focus Overall Equipment Effectiveness (OEE) Summary & Discussion 5

6 Why Focus on Autonomous Maintenance One of the keys to creating a culture of execution and achieving successful & sustainable ABS deployment is Engagement & Ownership Autonomous Maintenance (AM) is one of the Lean Manufacturing tools used at Alcoa to drive engagement and ownership In addition, AM helps reduce equipment related breakdowns, accidents and defects which is key to Alcoa s success Hence, the focus of this presentation: Strategically selecting focus equipment, operation or problem combined with strategic execution and engagement, results in sustainable implementation and continuous improvement 6

7 7 Levels or Steps of AM Continuous Reduction of All Losses Self Directed Address Quality Losses Standardization Expand to Complete Process & Systems Establish Basic Equipment Condition 1 st 3 steps 3 STEP 4 STEP 6 STEP 7 STEP PRACTICE FULL SELF MANAGEMENT QUALITY MAINTENANCE 5 STEP SYSTEM GENERAL PROCESS INSPECTION GENERAL EQUIPMENT INSPECTION. 2 STEP ESTABLISH INITIAL CLI STANDARDS 1STEP CONTAMINATION Reduce Time to Clean & INACCESSIBILITY INITIAL CLEANING OF Basic Cleaning and MACHINE Train Operators SUSTAIN Visual management Lubrication MAINTAIN IMPROVE Improve access to check points Tagging of Defects RESTORE 7

8 At Home and At Work!!!! AT HOME AT YOUR PLANT Fuel Check oil & coolant level Check air pressure A Cleanliness Check hydraulics pressure Check lights Cleanliness Check lubrication Tire Pressure 8

9 Why Clean??? CLEAN TO INSPECT INSPECT TO DETECT DETECT TO CORRECT CORRECT TO PREVENT 9

10 Potential for Failure is Introduced Ultra Sonic Waves Asset Health and the PF Curve Vibration Infrared The equipment will tell us that it is having problems before final failure, if we are listening. Temptation to Avoid: Using PdM & PMs processes but then optimizing a run to failure philosophy $ x 1 PdM Target = 15% Diagnostic + 35% Corrective Work = 50% Total Oil Analysis Can Hear It OEE Losses and Cost to Repair Can Smell It $ x 5 Can See It Failure Occurs OEE Losses and Cost to Repair $ x 10 PM Target = 15% Diagnostic + 15% Corrective Work = 30% Total Target = < 20% Time from P to F can be Weeks, Days, Hours, or Minutes Plenty of Time for Excellent Planning & Scheduling Unplanned-Unscheduled R&M work is 7 times more expensive than planned-scheduled work! Little to No Time for 10 Proper Planning & Scheduling

11 Why do Autonomous Maintenance? Start-Up Phase 100 Operations Phase AM/TPM equipment "normal" equipment OEE Historical performance of badly maintained equipment 2. Rebuild or major overhaul of equipment (costly, loss of production) 3. Early wear-out, shortened life Improve new equipment, bring up to design/construction errors (TPM-MP/FI). Maintain equipment at it's highest level of performance (TPM-PM/TPM-EW) and extend it s useful life. Reduce consequences of wear-out, replace worn parts, etc. (TPM-FI/PM) Time 11

12 ABS & AM - AM Impact Ice Berg Effect Labor Materials Reported Costs Downtime Emergency Purchases Safety Customer Complaints Lost Business Missed Schedules Scrap Crisis Management Ripple Effect Energy Start-up/Set-up/Clean-up Unreported Costs 12

13 AM Benefits to Maintenance Maintenance Department from "Low Tech" to "High Tech" Add "High Tech" work: "HIGH TECH" WORK Equipment: - Improvement -Overhaul - Monitoring Major PM, including: Predictive Maintenance New Equipment Design Training of Operators MAINTENANCE DEPARTMENT "ROUTINE" (Approx. 30%) tenance Departm ment Existing Maint Delegate "routine" work to operators (after training) Equipment: - Cleaning - Adjusting - Lubricating - Set-up - Inspection (most) - PM (some to most) - Minor repairs (some) 13

14 Topics Introduction Alcoa & ABS Overview Autonomous Maintenance (AM) What & Why Autonomous Maintenance Where to Focus Overall Equipment Effectiveness (OEE) Summary & Discussion 14

15 Identifying the Critical Operation (Contd.) Supply Demand P C S OEE Loss? OEE? OEE Loss? 15

16 Once the critical operation has been identified and focused cleaning and improvement events take place, there will be several opportunities identified for improvement. The natural tendency is to: Request for investment especially those that have been rejected over the years This will be a major issue in achieving success Hence, recommend classifying the solutions based on value and cost or complexity and selecting those with high value & low cost Identifying Solutions Hi Com mplexity/c Cost Lo Lo Reevaluate Immediate & Ongoing Daily Management Potential Value Long Term Immediate Reduction of Losses 16 Hi

17 Topics Introduction Alcoa & ABS Overview Autonomous Maintenance (AM) What & Why Autonomous Maintenance Where to Focus Overall Equipment Effectiveness (OEE) Summary & Discussion 17

18 OEE As A Measure of Effectiveness OEE is a simple powerful tool for finding waste: It is designed for operators on the shop floor to track performance and improve their work It is a key measurement of equipment stability It is used to break down large capacity problems into small, controllable losses that can be solved on the shop floor OEE losses are often referred to the six big losses and are broken down into three categories: Availability Breakdowns Setup & adjustment time Performance Idling & minor stoppages Reduced equipment capacity Quality Process scrap Quality scrap 18

19 Types of OEE Calculation & Issues Two ways to calculate based on time: Total time approach (for snap shots of Utilization or TEEP) Scheduled time approach (Recommended for ongoing OEE) Two ways to calculate based on elements of OEE either approaches are OK to use Composite approach Elemental approach Several deficiencies are apparent in the way we calculate OEE: Purpose and location of measurement/calculation is not clear Calculation l is not consistent t Effectiveness is confused with utilization Calculation and improvements are not connected to financial results 19

20 OEE Calculation Composite Approach (Also referred to as Unit Based ): Actual Good Units Produced OEE = x 100 Number of fgood dunits at tstandard dcycle Time Elemental Approach: (Also referred to as Component Based ) 20

21 OEE Application Inclusions & Exclusions Exclude Should not Impact OEE Planned maintenance >= 7 days Waiting due to no orders, store full, no pull Regularly scheduled meetings Load/Unload standard time Improvements in standard time Lunch/Breaks Unrelieved Planned scrap Include Will Impact OEE Changeover/Setup Tooling not available No or short crewing Waiting on material Product not meeting specifications Late start and Early shutdown Planned maintenance < 7 days (Unplanned) Extended PM/downtime past planned PM time Rules of Thumb: Does the calculation expose problems, in particular, the problems related to the business problem you are trying to solve? Is the calculation easy to understand and calculate on the shop floor? Are the problems within the operators control? Things not in the operators control: Planned scrap (e.g., side scrap) Machine design leading to long, manual load/unload times (however, standard load/unload times are still required, and times exceeding them are OEE losses) 21

22 OEE Dashboard Liked to Financial Results Overall Equipment Effectiveness Dashboard 2008 OEE Definition at 100% OEE $ / 1.0 OEE Pt Per Yr Baseline 2008 (1st Half) Previous Year Actual Current Year Goal Jan-08 Feb-08 Dec OEE Gap $ Value to Close Base to 100% OEE Gap $ Value to Close Base to 2008 Goal Annualized OEE $ Gap Value Achieved for 2008 Annualized OEE $ Gap Value Remaining Department XYZ Process ABC How much can be produced at 100% capacity and what equipment determines the pace How much can be produced at 100% capacity and what equipment determines the pace $69, % 2007 Goal 61.0% 61.0% 61.0% 61.0% 56.0% 61.0% $2,626,700 $346,154 ($148,846) $2,775,546 Actual 53.8% 53.9% 53.9% 2007 Goal 100.0% 100.0% 100.0% 100.0% $40, % 45.0% 100.0% $1,125,000 $1,125,000 ($756,818) $1,881,818 Actual 43.0% 65.0% 54.0% Total Value $3,751,700 $1,471,154 -$905,664 $4,657,364 22

23 Creating Your Dashboard Dashboard is better done for long term tracking at a process or department level Creating your dashboard should reflect your own business case, hence, do not copy Steps: Identify the target processes and departments based on business case Calculate the OEE to $$ equation (1% OEE =?? $$) Define the 100% OEE Calculate the savings potential (amount left on the table) Develop the equation Set a baseline and target OEE Setup the dashboard Develop a reviewing, problem solving and reporting cadence 23

24 Topics Introduction Alcoa & ABS Overview Autonomous Maintenance (AM) What & Why Autonomous Maintenance Where to Focus Overall Equipment Effectiveness (OEE) Summary & Discussion 24

25 Creating a Culture of Execution through Successful & Sustainable Deployment Identify the most significant opportunities Focus on no more than the organization s capability to quickly turn around Ensure engagement Everyone knows Why, the Business Case, and is passionate about it Understand the Current Condition and focus Where it is strategically most beneficial Develop a quickly achievable Target Condition with hi-value low-cost solutions on How to fix it Follow through on Actions to completion and Celebrate the accomplishments Ensure a system is put in place for continuous improvement, to Measure effectiveness, expose problems and fix them Ensure continuous focused improvement Fix and go back to the first step 25

26 Summary What have we covered: Successful approaches at Alcoa using ABS and AM to demonstrate creating a culture of execution Identification of the most strategic opportunities Engaging employees through Autonomous Maintenance How OEE is used in combination with ABS and AM to: Drive overall productivity improvements Drive toward zero breakdowns, accidents and defects How to encourage continuous improvement through OEE and the dashboard 26

27 Questions 27

28 Closing Slide Presenter name: Martin Nazareth com Successful Lean Implementation Through Strategic Selection, Execution and Continuous Improvement Number: VS5-07 Please return your completed session survey to the room host. 28