Removing the Barriers to Efficient Manufacturing

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1 Removing the Barriers to Efficient Manufacturing Daniel L. Ferguson /O\ \Cf*" ^ *^^S CRC Press I Taylor & Francis Croup Boca Raton London New York CRC Press is an imprint of the Taylor & Francis Group, an informa business A PRODUCTIVITY PRESS BOOK

2 Contents Preface xv Where We Are and How We Got Here xv The Change^ We Need Now.../. xvi Acknowledgments xix Introduction xxi About the Author xxv 1 Deming Got It Right 1 Introduction 1 Point 1: Management Must Have "Constancy of Purpose" to Stay in Business 4 Point 2: Adopt the New Philosophy 4 Point 3: Cease Dependence on Mass Inspection 5 Point 4: Stop Doing Business with the Low Bidder 5 Point 5: Find Problems 5 Point 6: Institute Modern Training Methods 5 Point 7: Institute Modern Methods of Supervision 6 Point 8: Drive Out Fear 6 Point 9: Break Down Barriers between Departments 6 Point 10: Eliminate Goals, Posters, and Slogans Directed at Workers to Do More., 7 Point 11: Eliminate Numerical Quotas 7 Point 12: Remove the Barriers That Keep People from Taking Pride in Their Work ~. 7 Point 13: Institute Vigorous Education and Retraining 8 Point 14: Top Management Must "Push" (Measure and Report) Every Day on the Above 13 Points 8 The Vision 8 Reducing Variability Is the Key 10 vii

3 viii Contents 2 Removing Barriers in the Workplace 13 Introduction 13 Order and Cleanliness 14 Getting, Started 14 Ergonomics Are Economical 15 Employee Facilities Show You Care (or Not) ' 16 Making Safety Equal to Everything Else 16 Establishing Minimum Standards 17 Other Safety Requirements 18 Summary :../? 19 3 Removing the Equipment Reliability Barrier with Effective Maintenance^. t 21 Introduction 21 Preventive Maintenance 22 Predictive Maintenance 23 Vibration Analysis 24 Dynamic Balancing 25 Laser Alignment 25 Ultrasonic Leak Detection ; 25 Infrared Imaging 26 Motor Analysis 26 Oil Analysis 26 PdM Summary 27 Total Productive Maintenance 27 The Maintenance Process ; 28 Work Orders 28 Estimating : 29 Maintenance Planning 30 Work Order Scheduling and Priorities 31 Work Order Completion: Getting the Feedback 32 Maintenance History 33 Spare Parts Management: Keeping Parts Visible 34 Stores Inventory Benchmarks 35 Computerized Maintenance Management System 35 The Human Factor, : 36 Maintenance Performance Benchmarks 38 Putting It All Together 38

4 Contents ix Removing the Process Variability Barrier with Automatic Control Systems 41 Introduction 41 Getting Started ' 43 A Few Real-Life Examples 45 Conclusion <. 49 Removing the Product Variability Barrier with Statistical Process Controls 51 Introduction 51 Sampled Data versus Continuous Monitoring' The Tools 53 Prework ^., 54 A Word of Caution about Sampling^ 55 Getting Started 55 SPC Tool 1: X-Bar and R Charts 56 SPCTool 2: Histogram 57 SPC Tool 3: Pareto Diagram 57 SPC Tool 4: Control Charts 58 SPC Tool 5: Fishbone Diagrams,.59 SPC Tool 6: Flow Chart 60 The X-Bar and Sigma Charting Marches On 60 Advanced SPC Tools for Digging Deeper 6l SPC Tool 7: Process Capability Study 6l SPC Tool 8: Designed Experiments 61 SPC Tool 9: Scatter Diagram 62 Summary 62 Removing the Raw Material Quality Barrier, 65 Introduction : 65 SMED (Single Minute Exchange of Die) 69 Introduction 69 The Vision 69 Getting Started 70 Step 1: Render the Process Safe 70 Step 2: Clean the Process 71 Step 3: Change Machine Settings 71 Step 4: Changing Components 72

5 x Contents Step 5: Changing Out Raw Materials and Supplies 73 Step 6: Additional Sampling 73 Step 7: Final Adjustments and Centerlining...:.,.74 The SMED Process 74 Back to the Vision 78 Summary 78 8 The Process Control Manual 81 Introduction 81 Products Produced 82 Product Specifications 83 Process Description 83 Process Diagrams..<r>. 83 Raw Materials Used Authorized Operating Supplies 85 Detailed Operating Procedures 86 SMED Procedures : 87 Process Reading Sheet 87 Required Tools 89 General Safety Procedures... : 89 Locking and Tagging Procedures 89 Housekeeping Checklist 90 Statistical Process Control...: 91 Product Sampling 91 Product Evaluation 92 Control Charting 92 Definition of "In Statistical Control" 92 Real Purpose of Control Charts 93 Back to the Process Control Manual < 93 Product Attributes 97 Summary 97 9 Training and Retraining 99 Introduction 99 Assessing Basic Skills 99 The Training Begins 101 Verification of Training, l 102 Retraining 102 Annual Recertification 103 Summary 104

6 Contents xi 10 Selected Topics on Working with People 105 Introduction 105 Topic 1: Driving out Fear 106 Topic 2; Promotions (No Good Deed Goes Unpunished) 108 : The Selection Process 108 After the Promotion 110 i Topic 3: Pay Systems Ill Pay According to Job Position 112 i Single Pay Rate 112 j Motivating Employees withpay (Not) 113 j Topic 4: Customer Service 114 j Topic 6: Uplifting Performance Reviews 116 ; Topic 7: Your Employees DcfrVot Have to Be Superstars 118 Topic 8: Nonpunitive Discipline The Last Resort 119 Coaching Session with Informal Note to File..120 Second Coaching Session with Official Note to File 121 One Day on Paid Leave for Employee to Develop Action Plan When All Else Fails: Termination 122 Conclusion 123 Closing Comments Some Pointers on Working with Unions Organizing for Success 129 Introduction 129 The Interdisciplinary Team Concept 130 The Multidisciplinary Team Concept 130 The Three Manufacturing Functions 133 Function 1: Operations 133 Operations Managers 133 Operations Crew Leaders 133 Operators 134 Function 2: Process Engineering. 134 Process Engineering Manager ; 134 Process Engineers 135 Quality Assurance 135 Function 3: Reliability 136 Reliability Manager 137 Reliability Engineers 137

7 xii Contents Reliability Crew Leader 138 Reliability Technicians 139 How the Three Functions Work Together 139 Performance Reviews by Customers 140 We Still Need a Team Putting It All Together with Action Plans 141 Introduction 141 Action Plans by Position 142 Plant Manager 142 Operations Manager 143 Operations Crew Leader 143 Process Operator i j$ Process Engineering Manager Process Engineer /. 153 Quality Technicians 153 Reliability Manager 153 Reliability Engineer 164 Reliability Crew Leader 164 Reliability Planner.". 165 Reliability Technician 165 Summary 174 Final Comments,: A Case Study 175 Appendix 1: The Red Bead Experiment 179 Introduction 179 The Experiment 180 Clear Instructions 181 Intimidation 183 Praise and Comparison Banners and Slogans : 183 Incentives 184 Blame 185 Performance Appraisals 185 Discussion of the Experiment 186 Dr. Deming's Fourteen Points Adaptations of the Experiment 189 The Fourteen Obligations of Top Management 190

8 Contents xiii Appendix 2: Introduction to Statistical Process Control Techniques 191 Index 247