System Kaizen Approach May 2015
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Transcript of System Kaizen Approach May 2015
Lean Production PDCA A3
Business Case Initial Condition Target Condition Implementation Indicators Approval
System Kaizen Process
“You
r Val
ue S
trea
m Im
prov
emen
t Coa
ch”
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“Lean Production” stands for...
…the complete and through elimination of waste to reduce the timeline from receipt of customer order to delivery.
...increase of efficiency and standardization by continuous improvements.
... a philosophy, as well as production techniques, for “cutting the fat” from production processes.
...the highest quality, lowest cost, shortest lead time...
... customer orientation,
orientation for quality and cost
reduction.
...A business system for organizing and managing product development, operations, suppliers, and customer relations that require less human effort, less space, less capital, less material, and less time to make products with fewer defects to precise customer desires.
...quick and agile as it provides the flexibility and speed to design and produce a wide variety of products customized to specific orders and delivered with extremely short lead times.
…the right part, in the right quantity,
at the right moment, in the right quality,
at the right place.
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Plan, Do, Check, Act (PDCA)
An improvement cycle based on the scientific method of proposing a change in a process, implementing the change, measuring the results, and taking appropriate action.
The PDCA cycle has four stages:
1. Plan: Determine goals for a process and needed changes to achieve them.
2. Do: Implement the changes.
3. Check: Evaluate the results in terms of performance.
4. Act: Stabilize and Standardize the change or begin the cycle again, depending on the results.
Plan
Do
Check
ActGrasp the
SituationStandardize
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A one page storyboard on 11”x17” paper, commonly known as A3-size paper. Logic flows from the top left to the bottom right, and each box leads to the next one.
An A3 includes both analysis (number-crunching) and synthesis (storytelling). It’s a practice of getting the problem, the analysis, the corrective actions, and the action plan on a single sheet of paper.
The primary purpose of the A3 is to gain a shared understanding of critical issues in order to solve problems and get results.
A3 Report
Initial Condition:
Target Condition:
Implementation:
Approval
Indicators
Background / Business Case:
Project Name:
A3 Report
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A3 Report
Initial Condition:
Target Condition:
Implementation:
Approval
Indicators
Background / Business Case:
Project Name:
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Define the Business Case
Increasing Customer expectations require
improved quality, delivery, and cost
Need to improve cost competitiveness to survive in a global
economy
- Growth/New Markets- Inventory Turnover- ROI Capital- Cost Reductions / Increase Margins
$
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A3 – Document Business Case
Background / Business Case:
Project Name: Hose Line Productivity Improvement
1. Increasing customer expectations and pressure require improvements in quality, delivery, and cost. 2. Need to improve cost competitiveness.
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The LEAN Journey
Initial Condition
IDEAL Condition
•100% Value Add•0 Defects (Internal)•One Piece Continuous Flow•Human Development•Value to Society
•Hidden Waste (Problems)•Poor Equipment Efficiency•Poor Labor Efficiency•High Defect Rates•Large Batches• Infrequent improvement
Unclear Journey
Before you can begin the journey you must “Grasp the Initial Condition”.
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Grasp the Initial Condition
Walk / Observe the Value Stream(s) from shipping to receiving.
Map the Process- Value Stream Map- Flow Chart- Spaghetti Diagram- Bubble Diagram- Work Flow
CustomerSupplier
Final AssemblyFabrication #2Fabrication #1
MRP
Finished Goods Control
Daily
Customer Schedule
MRP
Component Control
Supplier Orders (Weekly EDI)
Customer Orders
(Weekly EDI)
Daily Orders
ASN
Warehouse
RM IWIP
Warehouse
FG
Daily Schedule
Daily Ship Schedule
Shuttle
Shuttle
IWIP
FTT= 98%
OEE= 70%
Scrap= 2%
Rework= 1%
Uptime= 70%
EPEI = 3 - 10 Days
FTT= 96%
OEE= 50%
Scrap= 2%
Rework= 2%
Uptime= 70%
EPEI = 2- 5 Days
FTT= 94%
OEE= 65%
Scrap= 2%
Rework= 4%
Uptime= 75%
EPEI = 1 – 2 Days
Expedited
20 min
1 Day 1 Day
30 min
2 Days
20 min
4 Days RM Production Lead Time = 8.3 Days
Processing Lead Time = 70 min. (0.6%)
Kanban Rack
Kan
ban
Rac
kK
anba
n R
ack
HFV6 Jumper
Tube Punch
Sort
Table
Washer DrainRack
WasherDrainRack
FCB
ench
Tool Chest
2.7L EF1042
Bead Checker E
F005
3 - H
it
EF0061 - Hit
WIP
Rack EF007
3 - Hit
EF008 EF009 EF0012 - Hit
EF10412.7
EF0152 - Hit
Drop
Auto Loader
2.7L JR &
LHS
kive & P
unch
Load U
nload
Electric 110V
EF0042 - Hit
EF0042 - Hit Load Unload
EF M
achineE
F010
Robot
Guarding
Gua
rdin
g
Guarding
Robot Controller
3
5
6
3
6
7
5
4
SP
C T
able
45
2
2
1
1
1
5
1
5
1
4
51
1
1
2
2
5
Template: Quick Connect - Red LineJumper - Blue Line
Cutter
Racetrack 1
Racetrack 2
Racetrack 3
Hose Assy 1
Hose Assy 2
HoseAssy 3
Crimp 1
Crimp 2
Crimp 3
Butter-Fly 1
Butter-Fly 2
Butter-Fly 3
Clench1
Clench2
Test, Inspect,Tape, Gauge,
And Pack1
1 x 3 x 3 x 3 x 1 x 2 x 1
= 54 different possible paths through production
Masco
RawWIP
Raw
A
B
Ranso-hofff
C
BushingPress
GantryLoad
Key Process IndicatorsIndicators: Current
Lead Time 8.3 days
WIP 12,168
Productivity (MH/100) 6.00
Bubble Diagram (# Paths) 54
OBC (% over ideal) 25%
Problems / Opportunities
CustomerSupplier
Final AssemblyFabrication #2Fabrication #1
MRP
Finished Goods Control
Daily
Customer Schedule
MRP
Component Control
Supplier Orders (Weekly EDI)
Customer Orders
(Weekly EDI)
Daily Orders
ASN
Warehouse
RM IWIP
Warehouse
FG
Daily Schedule
Daily Ship Schedule
Shuttle
Shuttle
IWIP
1
2
FTT= 98%
OEE= 70%
Scrap= 2%
Rework= 1%
Uptime= 70%
EPEI = 3 - 10 Days
FTT= 96%
OEE= 50%
Scrap= 2%
Rework= 2%
Uptime= 70%
EPEI = 2- 5 Days
FTT= 94%
OEE= 65%
Scrap= 2%
Rework= 4%
Uptime= 75%
EPEI = 1 – 2 Days
5
63
4
5
7
88
9
Expedited
10
8
20 min
1 Day 1 Day
30 min
2 Days
20 min
4 Days RM Production Lead Time = 8.3 Days
Processing Lead Time = 70 min. (0.6%)
Problems / Opportunities:1. Supplier incoming quality2. Excessive RM amounts3. Excessive rework4. Poor equipment availability (OEE)5. Excessive WIP amounts6. Excessive lead-times (Muda)7. Multiple scheduling points (Push)8. Group leader managing scheduling9. Excessive logistic touches10. Premium freight cost
Barriers
Barriers:• Supplier Quality System• Poor OEE (59%) at Fab. 2
Other Relevant Data
Operator Balance Chart
26
5260
54
2820
0
10
20
30
40
50
60
70
80
90
Masco Washer Inspect/Pack
Value-Added Waiting Takt
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A3 – Document Initial Condition
Background / Business Case:
Project Name: Hose Line Productivity Improvement
1. Increasing customer expectations and pressure require improvements in quality, delivery, and cost.
2. Need to improve cost competitiveness.
Initial Condition:CustomerSupplier
Final AssemblyFabrication #2Fabrication #1
MRP
Finished Goods Control
Daily
Customer Schedule
MRP
Component Control
Supplier Orders (Weekly EDI)
Customer Orders
(Weekly EDI)
Daily Orders
ASN
Warehouse
RM IWIP
Warehouse
FG
Daily Schedule
Daily Ship Schedule
Shuttle
Shuttle
IWIP
1
2
FTT= 98%
OEE= 70%
Scrap= 2%
Rework= 1%
Uptime= 70%
EPEI = 3 - 10 Days
FTT= 96%
OEE= 50%
Scrap= 2%
Rework= 2%
Uptime= 70%
EPEI = 2- 5 Days
FTT= 94%
OEE= 65%
Scrap= 2%
Rework= 4%
Uptime= 75%
EPEI = 1 – 2 Days
5
63
4
5
7
88
9
Expedited
10
8
20 min
1 Day 1 Day
30 min
2 Days
20 min
4 Days RM Production Lead Time = 8.3 Days
Processing Lead Time = 70 min. (0.6%)
Kanban Rack
Kan
ban
Rac
kK
anba
n R
ack
HFV6 Jumper
Tube Punch
Sort
Table
Washer DrainRack
WasherDrainRack
FCB
ench
Tool Chest
2.7L EF1042
Bead Checker E
F005
3 - H
it
EF0061 - Hit
WIP
Rack EF007
3 - Hit
EF008 EF009 EF0012 - Hit
EF10412.7
EF0152 - Hit
DropAuto
Loader
2.7L JR &
LHS
kive & P
unch
Load U
nload
Ele
ctric 11
0V
EF0042 - Hit
EF0042 - Hit Load Unload
EF M
achineE
F010
Robot
Guarding
Gu
ard
ing
Guarding
Robot Cont roller
3
5
6
3
6
7
5
4
SP
C T
able
45
2
2
1
1
1
5
1
5
1
4
51
1
1
2
2
5
Template: Quick Connect - Red LineJumper - Blue Line
Masco
RawWIP
Raw
A
B
Ranso-hofff
C
BushingPress
GantryLoad
Problems / Opportunities:1. Supplier incoming quality2. Excessive RM amounts3. Excessive rework4. Poor equipment availability (OEE)5. Excessive WIP amounts6. Excessive lead-times (Muda)7. Multiple scheduling points (Push)8. Group leader managing scheduling9. Excessive logistic touches10. Premium freight cost
Barriers:• Supplier Quality System• Poor OEE (59%) at Fab. 2
Operator Balance Chart
26
5260
54
2820
0
10
20
30
40
50
60
70
80
90
Masco Washer Inspect/Pack
Value-Added Waiting Takt
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Prioritize Problems / Opportunities
Cost, Effort, Time
Impact1 2
3 4
StartHere
Work in this direction
Do not work here!
Work on High Impact, Low Effort Activities
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The LEAN Journey
Initial Condition
IDEAL Condition
•100% Value Add•0 Defects (Internal)•One Piece Continuous Flow•Human Development•Value to Society
•Hidden Waste (Problems)•Poor Equipment Efficiency•Poor Labor Efficiency•High Defect Rates•Large Batches• Infrequent improvement
Unclear Journey
Once the Initial Condition is thoroughly understood the next step is to define a Target Condition assuring a magnetic pull towards the Ideal Condition.
Target Condition
Unclear Journey
The Target Condition should be a short term vision that is attainable and measured in days/weeks not months/years.
Initial Condition
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Define the Target Condition
Map the Future StateCustomer
Supplier
Pacemaker
Customer SpecificScheduling PointComplexity Split
Fabrication #2Fabrication #1
FIFO
Cross Dock or Supplier
Warehouse
MRP
AdP Finished Goods Control
Daily
Customer Schedule
Overseas Suppliers
MRP
AdP Component
Control
A
Source Global Feel Local
Supplier Orders (Weekly EDI) Customer
Orders (Weekly EDI)
Daily Orders
e-Kanban
3x Day
Green Loop (A Component Suppliers)
Line side “A” component Supermarket MIN/MAX
FG Supermarket MIN/MAX
FG located/visualized in
manufacturing building warehouse
ASN
O X O X O X
RM located/visualized in
manufacturing building warehouse
Warehouse (RM)
NAFTA Suppliers
RM delivered to POU locations established by value stream
(A Items) EPE Day or Shipment Window then
strive to shorten over time
Ridged MIN/MAX Rules – Minimum
level inventoryCycle + Buffer + Safety Stocks
EPEI Goal to match the pacemaker
Ridged MIN/MAX Rules – Minimum level
inventory
EPEI Goal to match the pacemaker
20 Min. Loops
1 Day on hand RM
Daily Deliveries
Key Process Indicators
Indicators: Current Target Delta
Lead Time 8.3 days 4.0 days -52%
WIP 12,168 7614 -37%
Productivity (MH/100)
6.00 4.78 -20%
Bubble Diagram (# Paths)
54 2 -96%
OBC (% over ideal)
25% 8% -68%
Verbal Description
• Reduce from 3 Operators to 2 in Upper Machining
• Elimination of 106 seconds of labor in Upper Machining
• OEE > 88% (with FWD)• OEE >70% (w/o FWD)
Other Graphical Analysis
Operator Balance Chart
67 60
7
0
10
20
30
40
50
60
70
80
Machining Inspect/Pack
Value-Added Waiting Takt
Masco
RawWIP
Raw
A
B
Ranso-hofff
C
BushingPress
GantryLoad
05/02/2023
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A3 – Document Target Condition
Background / Business Case:
Project Name: Hose Line Productivity Improvement
1. Increasing customer expectations and pressure require improvements in quality, delivery, and cost.
2. Need to improve cost competitiveness.
Initial Condition:CustomerSupplier
Final AssemblyFabrication #2Fabrication #1
MRP
Finished Goods Control
Daily
Customer Schedule
MRP
Component Control
Supplier Orders (Weekly EDI)
Customer Orders
(Weekly EDI)
Daily Orders
ASN
Warehouse
RM IWIP
Warehouse
FG
Daily Schedule
Daily Ship Schedule
Shuttle
Shuttle
IWIP
1
2
FTT= 98%
OEE= 70%
Scrap= 2%
Rework= 1%
Uptime= 70%
EPEI = 3 - 10 Days
FTT= 96%
OEE= 50%
Scrap= 2%
Rework= 2%
Uptime= 70%
EPEI = 2- 5 Days
FTT= 94%
OEE= 65%
Scrap= 2%
Rework= 4%
Uptime= 75%
EPEI = 1 – 2 Days
5
63
4
5
7
88
9
Expedited
10
8
20 min
1 Day 1 Day
30 min
2 Days
20 min
4 Days RM Production Lead Time = 8.3 Days
Processing Lead Time = 70 min. (0.6%)
Kanban Rack
Kan
ban
Rac
kK
anba
n R
ack
HFV6 Jumper
Tube Punch
Sort
Table
Washer DrainRack
WasherDrainRack
FCB
ench
Tool Chest
2.7L EF1042
Bead Checker E
F005
3 - H
it
EF0061 - Hit
WIP
Rack EF007
3 - Hit
EF008 EF009 EF0012 - Hit
EF10412.7
EF0152 - Hit
DropAuto
Loader
2.7L JR &
LHS
kive & P
unch
Load U
nload
Ele
ctric 11
0V
EF0042 - Hit
EF0042 - Hit Load Unload
EF M
achineE
F010
Robot
Guarding
Gu
ard
ing
Guarding
Robot Cont roller
3
5
6
3
6
7
5
4
SP
C T
able
45
2
2
1
1
1
5
1
5
1
4
51
1
1
2
2
5
Template: Quick Connect - Red LineJumper - Blue Line
Masco
RawWIP
Raw
A
B
Ranso-hofff
C
BushingPress
GantryLoad
Problems / Opportunities:1. Supplier incoming quality2. Excessive RM amounts3. Excessive rework4. Poor equipment availability (OEE)5. Excessive WIP amounts6. Excessive lead-times (Muda)7. Multiple scheduling points (Push)8. Group leader managing scheduling9. Excessive logistic touches10. Premium freight cost
Barriers:• Supplier Quality System• Poor OEE (59%) at Fab. 2
Operator Balance Chart
26
5260
54
2820
0
10
20
30
40
50
60
70
80
90
Masco Washer Inspect/Pack
Value-Added Waiting Takt
Target Condition:Customer
Supplier
Pacemaker
Customer SpecificScheduling PointComplexity Split
Fabrication #2Fabrication #1
FIFO
Cross Dock or Supplier
Warehouse
MRP
AdP Finished Goods Control
Daily
Customer Schedule
Overseas Suppliers
MRP
AdP Component
Control
A
Source Global Feel Local
Supplier Orders (Weekly EDI) Customer
Orders (Weekly EDI)
Daily Orders
e-Kanban
3x Day
Green Loop (A Component Suppliers)
Line side “A” component Supermarket MIN/MAX
FG Supermarket MIN/MAX
FG located/visualized in
manufacturing building warehouse
ASN
O X O X O X
RM located/visualized in
manufacturing building warehouse
Warehouse (RM)
NAFTA Suppliers
RM delivered to POU locations established by value stream
(A Items) EPE Day or Shipment Window then
strive to shorten over time
Ridged MIN/MAX Rules – Minimum
level inventoryCycle + Buffer + Safety Stocks
EPEI Goal to match the pacemaker
Ridged MIN/MAX Rules – Minimum level
inventory
EPEI Goal to match the pacemaker
20 Min. Loops
1 Day on hand RM
Daily Deliveries
Masco
RawWIP
Raw
A
B
Ranso-hofff
C
BushingPress
GantryLoad
Operator Balance Chart
67 60
7
0
10
20
30
40
50
60
70
80
Machining Inspect/Pack
Value-Added Waiting Takt
• Reduce from 3 Operators to 2 in Upper Machining
• Elimination of 106 seconds of labor in Upper Machining
• OEE > 88% (with FWD)• OEE >70% (w/o FWD)
05/02/2023
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Create an Implementation Plan
Implementation:
# Task Resp.Person
Target Date
Feb 05
Mar 05
Apr 05
May 05
Jun 05
Jul 05
Aug 05
Sep 05
Oct 05
Nov 05
Review Review
1 Fix Clamping to eliminate operator checking clamp force
Roger Marshall
4/1/05
2 Reprogram Masco to separate operator from machine (PCT=88)
Grant Glasscock
5/1/05
3 Standardize Blow-off (PCT=77)
Brian Zolman
3/1/05
4 Improve clamp/ unclamp speed (PCT=75)
Roger Marshall
4/1/05
5 Improve fixture rotation rate (PCT=74)
Grant Glasscock
4/1/05
6 ROI Analysis: Re-balance Gantry (13 sec reduction)
Grant Glasscock
5/1/05
7 ROI Analysis: Re-balance Masco (PCT=70)
Matt Jacoby 5/1/05
8 ROI Analysis: Blow-off machine (PCT=63)
Roger Marshall
4/1/05
9 Reduce from 3 to 2 operators per shift on Lower Machining cell
Roger Marshall
7/1/05
10 Reduce from 3 to 2 operators per shift on Finishing cell
Roger Marshall
9/1/05
Task description with specific, quantifiable
expected resultsResponsible Person
3 Standardize Blow-off (PCT=77)
Planned Start / Completion
- Plan Start
- Act Start
- Plan Compl.
- Act. Compl.
- ReviewPlanning:
Periodic evaluation of progress against planned timing and
results
Evaluation:
X- On Target
- Behind Target
- In Trouble
05/02/2023
“You
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A3 – Document Implementation Plan
Background / Business Case:
Project Name: Hose Line Productivity Improvement
1. Increasing customer expectations and pressure require improvements in quality, delivery, and cost.
2. Need to improve cost competitiveness.
Initial Condition:CustomerSupplier
Final AssemblyFabrication #2Fabrication #1
MRP
Finished Goods Control
Daily
Customer Schedule
MRP
Component Control
Supplier Orders (Weekly EDI)
Customer Orders
(Weekly EDI)
Daily Orders
ASN
Warehouse
RM IWIP
Warehouse
FG
Daily Schedule
Daily Ship Schedule
Shuttle
Shuttle
IWIP
1
2
FTT= 98%
OEE= 70%
Scrap= 2%
Rework= 1%
Uptime= 70%
EPEI = 3 - 10 Days
FTT= 96%
OEE= 50%
Scrap= 2%
Rework= 2%
Uptime= 70%
EPEI = 2- 5 Days
FTT= 94%
OEE= 65%
Scrap= 2%
Rework= 4%
Uptime= 75%
EPEI = 1 – 2 Days
5
63
4
5
7
88
9
Expedited
10
8
20 min
1 Day 1 Day
30 min
2 Days
20 min
4 Days RM Production Lead Time = 8.3 Days
Processing Lead Time = 70 min. (0.6%)
Kanban Rack
Kan
ban
Rac
kK
anba
n R
ack
HFV6 Jumper
Tube Punch
Sort
Table
Washer DrainRack
WasherDrainRack
FCB
ench
Tool Chest
2.7L EF1042
Bead Checker E
F00
53
- Hit
EF0061 - Hit
WIP
Rack EF007
3 - Hit
EF008 EF009 EF0012 - Hit
EF10412.7
EF0152 - Hit
Drop
Auto Loader
2.7L JR &
LHS
kive & P
unch
Load
U
nload
Electric
110V
EF0042 - Hit
EF0042 - Hit Load Unload
EF M
achine
EF010
Robot
Guarding
Gua
rdin
g
Gua
rding
Robot Cont roller
3
5
6
3
6
7
5
4
SP
C T
able
45
2
2
1
1
1
5
1
5
1
4
51
1
1
2
2
5
Template: Quick Connect - Red LineJumper - Blue Line
Masco
RawWIP
Raw
A
B
Ranso-hofff
C
BushingPress
GantryLoad
Problems / Opportunities:1. Supplier incoming quality2. Excessive RM amounts3. Excessive rework4. Poor equipment availability (OEE)5. Excessive WIP amounts6. Excessive lead-times (Muda)7. Multiple scheduling points (Push)8. Group leader managing scheduling9. Excessive logistic touches10. Premium freight cost
Barriers:• Supplier Quality System• Poor OEE (59%) at Fab. 2
Operator Balance Chart
26
5260
54
2820
0
10
20
30
40
50
60
70
80
90
Masco Washer Inspect/Pack
Value-Added Waiting Takt
Target Condition:Customer
Supplier
Pacemaker
Customer SpecificScheduling PointComplexity Split
Fabrication #2Fabrication #1
FIFO
Cross Dock or Supplier
Warehouse
MRP
AdP Finished Goods Control
Daily
Customer Schedule
Overseas Suppliers
MRP
AdP Component
Control
A
Source Global Feel Local
Supplier Orders (Weekly EDI) Customer
Orders (Weekly EDI)
Daily Orders
e-Kanban
3x Day
Green Loop (A Component Suppliers)
Line side “A” component Supermarket MIN/MAX
FG Supermarket MIN/MAX
FG located/visualized in
manufacturing building warehouse
ASN
O X O X O X
RM located/visualized in
manufacturing building warehouse
Warehouse (RM)
NAFTA Suppliers
RM delivered to POU locations established by value stream
(A Items) EPE Day or Shipment Window then
strive to shorten over time
Ridged MIN/MAX Rules – Minimum
level inventoryCycle + Buffer + Safety Stocks
EPEI Goal to match the pacemaker
Ridged MIN/MAX Rules – Minimum level
inventory
EPEI Goal to match the pacemaker
20 Min. Loops
1 Day on hand RM
Daily Deliveries
Masco
RawWIP
Raw
A
B
Ranso-hofff
C
BushingPress
GantryLoad
Operator Balance Chart
67 60
7
0
10
20
30
40
50
60
70
80
Machining Inspect/Pack
Value-Added Waiting Takt
• Reduce from 3 Operators to 2 in Upper Machining
• Elimination of 106 seconds of labor in Upper Machining
• OEE > 88% (with FWD)• OEE >70% (w/o FWD)
Implementation:Implementation:# Task Resp.
PersonTarget Date
Feb 05
Mar 05
Apr 05
May 05
Jun 05
Jul 05
Aug 05
Sep 05
Oct 05
Nov 05
Review Review
1 Fix Clamping to eliminate operator checking clamp force
Roger Marshall
4/1/05
2 Reprogram Masco to separate operator from machine (PCT=88)
Grant Glasscock
5/1/05
3 Standardize Blow-off (PCT=77)
Brian Zolman
3/1/05
4 Improve clamp/ unclamp speed (PCT=75)
Roger Marshall
4/1/05
5 Improve fixture rotation rate (PCT=74)
Grant Glasscock
4/1/05
6 ROI Analysis: Re-balance Gantry (13 sec reduction)
Grant Glasscock
5/1/05
7 ROI Analysis: Re-balance Masco (PCT=70)
Matt Jacoby 5/1/05
8 ROI Analysis: Blow-off machine (PCT=63)
Roger Marshall
4/1/05
9 Reduce from 3 to 2 operators per shift on Lower Machining cell
Roger Marshall
7/1/05
10 Reduce from 3 to 2 operators per shift on Finishing cell
Roger Marshall
9/1/05
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Identify Expected Results
Tangible Metric Improvements
Indicators: Current Target Delta Intangibles:
Lead Time 1.52 days .95 days -37% Less variation in the assembly process
Lower C/O time by 66%Similar results can be achieved on the
APOX1 and ASOX assembly linesLabor productivity stability at a wide
range of demandReduced material handling and
conveyance of WIP
WIP 12,168 7614 -37%
Productivity (MH/100) 6.00 4.78 -20%
Bubble Diagram (Paths) 54 2 -96%
OBC (% over ideal) 25% 8% -68%
WIP Value $13,624 $8,525 -$5,099
Labor Cost ($/year) $352,000 $253,500 -$98,500
Tangible Cost ImprovementsIntangibles
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A3 – Document the KPI’s and Expected Results
Background / Business Case:
Project Name: Hose Line Productivity Improvement
1. Increasing customer expectations and pressure require improvements in quality, delivery, and cost.
2. Need to improve cost competitiveness.
Initial Condition:CustomerSupplier
Final AssemblyFabrication #2Fabrication #1
MRP
Finished Goods Control
Daily
Customer Schedule
MRP
Component Control
Supplier Orders (Weekly EDI)
Customer Orders
(Weekly EDI)
Daily Orders
ASN
Warehouse
RM IWIP
Warehouse
FG
Daily Schedule
Daily Ship Schedule
Shuttle
Shuttle
IWIP
1
2
FTT= 98%
OEE= 70%
Scrap= 2%
Rework= 1%
Uptime= 70%
EPEI = 3 - 10 Days
FTT= 96%
OEE= 50%
Scrap= 2%
Rework= 2%
Uptime= 70%
EPEI = 2- 5 Days
FTT= 94%
OEE= 65%
Scrap= 2%
Rework= 4%
Uptime= 75%
EPEI = 1 – 2 Days
5
63
4
5
7
88
9
Expedited
10
8
20 min
1 Day 1 Day
30 min
2 Days
20 min
4 Days RM Production Lead Time = 8.3 Days
Processing Lead Time = 70 min. (0.6%)
Kanban Rack
Kan
ban
Rac
kK
anba
n R
ack
HFV6 Jumper
Tube Punch
Sort
Table
Washer DrainRack
WasherDrainRack
FCB
ench
Tool Chest
2.7L EF1042
Bead Checker E
F00
53
- Hit
EF0061 - Hit
WIP
Rack EF007
3 - Hit
EF008 EF009 EF0012 - Hit
EF10412.7
EF0152 - Hit
Drop
Auto Loader
2.7L JR &
LHS
kive & P
unch
Load
U
nload
Electric
110V
EF0042 - Hit
EF0042 - Hit Load Unload
EF M
achine
EF010
Robot
Guarding
Gua
rdin
g
Gua
rding
Robot Cont roller
3
5
6
3
6
7
5
4
SP
C T
able
45
2
2
1
1
1
5
1
5
1
4
51
1
1
2
2
5
Template: Quick Connect - Red LineJumper - Blue Line
Masco
RawWIP
Raw
A
B
Ranso-hofff
C
BushingPress
GantryLoad
Problems / Opportunities:1. Supplier incoming quality2. Excessive RM amounts3. Excessive rework4. Poor equipment availability (OEE)5. Excessive WIP amounts6. Excessive lead-times (Muda)7. Multiple scheduling points (Push)8. Group leader managing scheduling9. Excessive logistic touches10. Premium freight cost
Barriers:• Supplier Quality System• Poor OEE (59%) at Fab. 2
Operator Balance Chart
26
5260
54
2820
0
10
20
30
40
50
60
70
80
90
Masco Washer Inspect/Pack
Value-Added Waiting Takt
Target Condition:Customer
Supplier
Pacemaker
Customer SpecificScheduling PointComplexity Split
Fabrication #2Fabrication #1
FIFO
Cross Dock or Supplier
Warehouse
MRP
AdP Finished Goods Control
Daily
Customer Schedule
Overseas Suppliers
MRP
AdP Component
Control
A
Source Global Feel Local
Supplier Orders (Weekly EDI) Customer
Orders (Weekly EDI)
Daily Orders
e-Kanban
3x Day
Green Loop (A Component Suppliers)
Line side “A” component Supermarket MIN/MAX
FG Supermarket MIN/MAX
FG located/visualized in
manufacturing building warehouse
ASN
O X O X O X
RM located/visualized in
manufacturing building warehouse
Warehouse (RM)
NAFTA Suppliers
RM delivered to POU locations established by value stream
(A Items) EPE Day or Shipment Window then
strive to shorten over time
Ridged MIN/MAX Rules – Minimum
level inventoryCycle + Buffer + Safety Stocks
EPEI Goal to match the pacemaker
Ridged MIN/MAX Rules – Minimum level
inventory
EPEI Goal to match the pacemaker
20 Min. Loops
1 Day on hand RM
Daily Deliveries
Masco
RawWIP
Raw
A
B
Ranso-hofff
C
BushingPress
GantryLoad
Operator Balance Chart
67 60
7
0
10
20
30
40
50
60
70
80
Machining Inspect/Pack
Value-Added Waiting Takt
• Reduce from 3 Operators to 2 in Upper Machining
• Elimination of 106 seconds of labor in Upper Machining
• OEE > 88% (with FWD)• OEE >70% (w/o FWD)
Implementation:Implementation:# Task Resp.
PersonTarget Date
Feb 05
Mar 05
Apr 05
May 05
Jun 05
Jul 05
Aug 05
Sep 05
Oct 05
Nov 05
Review Review
1 Fix Clamping to eliminate operator checking clamp force
Roger Marshall
4/1/05
2 Reprogram Masco to separate operator from machine (PCT=88)
Grant Glasscock
5/1/05
3 Standardize Blow-off (PCT=77)
Brian Zolman
3/1/05
4 Improve clamp/ unclamp speed (PCT=75)
Roger Marshall
4/1/05
5 Improve fixture rotation rate (PCT=74)
Grant Glasscock
4/1/05
6 ROI Analysis: Re-balance Gantry (13 sec reduction)
Grant Glasscock
5/1/05
7 ROI Analysis: Re-balance Masco (PCT=70)
Matt Jacoby 5/1/05
8 ROI Analysis: Blow-off machine (PCT=63)
Roger Marshall
4/1/05
9 Reduce from 3 to 2 operators per shift on Lower Machining cell
Roger Marshall
7/1/05
10 Reduce from 3 to 2 operators per shift on Finishing cell
Roger Marshall
9/1/05
IndicatorsIndicators: Current Target Delta Intangibles:
Lead Time 1.52 days .95 days -37% Less variation in the assembly process Lower C/O time by 66% Similar results can be achieved on the
APOX1 and ASOX assembly lines Labor productivity stability at a wide
range of demand Reduced material handling and
conveyance of WIP
WIP 12,168 7614 -37%
Productivity (MH/100) 6.00 4.78 -20%
Bubble Diagram (Paths) 54 2 -96%
OBC (% over ideal) 25% 8% -68%
WIP Value $13,624 $8,525 -$5,099
Labor Cost ($/year) $352,000 $253,500 -$98,500
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Seek Project Approval
Project Team Leader
Project Team Leader:Roger Smith
Team Members:Jim Fisher, Mark JohnsonSara LewisJohn Davis
Management:Tom Burdette
Team MembersManagement
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A3 – Document Project Approval
Background / Business Case:
Project Name: Hose Line Productivity Improvement
1. Increasing customer expectations and pressure require improvements in quality, delivery, and cost.
2. Need to improve cost competitiveness.
Initial Condition:CustomerSupplier
Final AssemblyFabrication #2Fabrication #1
MRP
Finished Goods Control
Daily
Customer Schedule
MRP
Component Control
Supplier Orders (Weekly EDI)
Customer Orders
(Weekly EDI)
Daily Orders
ASN
Warehouse
RM IWIP
Warehouse
FG
Daily Schedule
Daily Ship Schedule
Shuttle
Shuttle
IWIP
1
2
FTT= 98%
OEE= 70%
Scrap= 2%
Rework= 1%
Uptime= 70%
EPEI = 3 - 10 Days
FTT= 96%
OEE= 50%
Scrap= 2%
Rework= 2%
Uptime= 70%
EPEI = 2- 5 Days
FTT= 94%
OEE= 65%
Scrap= 2%
Rework= 4%
Uptime= 75%
EPEI = 1 – 2 Days
5
63
4
5
7
88
9
Expedited
10
8
20 min
1 Day 1 Day
30 min
2 Days
20 min
4 Days RM Production Lead Time = 8.3 Days
Processing Lead Time = 70 min. (0.6%)
Kanban Rack
Kan
ban
Rac
kK
anba
n R
ack
HFV6 Jumper
Tube Punch
Sort
Table
Washer DrainRack
WasherDrainRack
FCB
ench
Tool Chest
2.7L EF1042
Bead Checker E
F00
53
- Hit
EF0061 - Hit
WIP
Rack EF007
3 - Hit
EF008 EF009 EF0012 - Hit
EF10412.7
EF0152 - Hit
Drop
Auto Loader
2.7L JR &
LHS
kive & P
unch
Load
U
nload
Electric
110V
EF0042 - Hit
EF0042 - Hit Load Unload
EF M
achine
EF010
Robot
Guarding
Gua
rdin
g
Gua
rding
Robot Cont roller
3
5
6
3
6
7
5
4
SP
C T
able
45
2
2
1
1
1
5
1
5
1
4
51
1
1
2
2
5
Template: Quick Connect - Red LineJumper - Blue Line
Masco
RawWIP
Raw
A
B
Ranso-hofff
C
BushingPress
GantryLoad
Problems / Opportunities:1. Supplier incoming quality2. Excessive RM amounts3. Excessive rework4. Poor equipment availability (OEE)5. Excessive WIP amounts6. Excessive lead-times (Muda)7. Multiple scheduling points (Push)8. Group leader managing scheduling9. Excessive logistic touches10. Premium freight cost
Barriers:• Supplier Quality System• Poor OEE (59%) at Fab. 2
Operator Balance Chart
26
5260
54
2820
0
10
20
30
40
50
60
70
80
90
Masco Washer Inspect/Pack
Value-Added Waiting Takt
Target Condition:Customer
Supplier
Pacemaker
Customer SpecificScheduling PointComplexity Split
Fabrication #2Fabrication #1
FIFO
Cross Dock or Supplier
Warehouse
MRP
AdP Finished Goods Control
Daily
Customer Schedule
Overseas Suppliers
MRP
AdP Component
Control
A
Source Global Feel Local
Supplier Orders (Weekly EDI) Customer
Orders (Weekly EDI)
Daily Orders
e-Kanban
3x Day
Green Loop (A Component Suppliers)
Line side “A” component Supermarket MIN/MAX
FG Supermarket MIN/MAX
FG located/visualized in
manufacturing building warehouse
ASN
O X O X O X
RM located/visualized in
manufacturing building warehouse
Warehouse (RM)
NAFTA Suppliers
RM delivered to POU locations established by value stream
(A Items) EPE Day or Shipment Window then
strive to shorten over time
Ridged MIN/MAX Rules – Minimum
level inventoryCycle + Buffer + Safety Stocks
EPEI Goal to match the pacemaker
Ridged MIN/MAX Rules – Minimum level
inventory
EPEI Goal to match the pacemaker
20 Min. Loops
1 Day on hand RM
Daily Deliveries
Masco
RawWIP
Raw
A
B
Ranso-hofff
C
BushingPress
GantryLoad
Operator Balance Chart
67 60
7
0
10
20
30
40
50
60
70
80
Machining Inspect/Pack
Value-Added Waiting Takt
• Reduce from 3 Operators to 2 in Upper Machining
• Elimination of 106 seconds of labor in Upper Machining
• OEE > 88% (with FWD)• OEE >70% (w/o FWD)
Implementation:Implementation:# Task Resp.
PersonTarget Date
Feb 05
Mar 05
Apr 05
May 05
Jun 05
Jul 05
Aug 05
Sep 05
Oct 05
Nov 05
Review Review
1 Fix Clamping to eliminate operator checking clamp force
Roger Marshall
4/1/05
2 Reprogram Masco to separate operator from machine (PCT=88)
Grant Glasscock
5/1/05
3 Standardize Blow-off (PCT=77)
Brian Zolman
3/1/05
4 Improve clamp/ unclamp speed (PCT=75)
Roger Marshall
4/1/05
5 Improve fixture rotation rate (PCT=74)
Grant Glasscock
4/1/05
6 ROI Analysis: Re-balance Gantry (13 sec reduction)
Grant Glasscock
5/1/05
7 ROI Analysis: Re-balance Masco (PCT=70)
Matt Jacoby 5/1/05
8 ROI Analysis: Blow-off machine (PCT=63)
Roger Marshall
4/1/05
9 Reduce from 3 to 2 operators per shift on Lower Machining cell
Roger Marshall
7/1/05
10 Reduce from 3 to 2 operators per shift on Finishing cell
Roger Marshall
9/1/05
IndicatorsIndicators: Current Target Delta Intangibles:
Lead Time 1.52 days .95 days -37% Less variation in the assembly process Lower C/O time by 66% Similar results can be achieved on the
APOX1 and ASOX assembly lines Labor productivity stability at a wide
range of demand Reduced material handling and
conveyance of WIP
WIP 12,168 7614 -37%
Productivity (MH/100) 6.00 4.78 -20%
Bubble Diagram (Paths) 54 2 -96%
OBC (% over ideal) 25% 8% -68%
WIP Value $13,624 $8,525 -$5,099
Labor Cost ($/year) $352,000 $253,500 -$98,500
Approval Project Team Leader:Roger Smith
Team Members:Jim Fisher, Mark JohnsonSara LewisJohn Davis
Management:Tom Burdette
05/02/2023
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The LEAN Journey
Now its time to work the plan. As you move forward on this journey additional barriers will be encountered.
Initial Condition
IDEAL Condition
•Hidden Waste (Problems)•Poor Equipment Efficiency•Poor Labor Efficiency•High Defect Rates•Large Batches• Infrequent improvement
Target Condition
Unclear Journey
•100% Value Add•0 Defects (Internal)•One Piece Continuous Flow•Human Development•Value to Society
Dodging barriers leads you away from the Ideal Condition. Barriers must be met head-on and eliminated!
Solutions to problems cannot involve diverting off the path to the Ideal Condition!
There can be no shortcuts!
Clear Plan
Barriers
Plan
Do
Check
ActGrasp
the Situation
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The LEAN Journey
To achieve sustainability it is important to stabilize and standardize the system improvements; otherwise, improvements will regress over time.
Initial Condition
IDEAL Condition
•Hidden Waste (Problems)•Poor Equipment Efficiency•Poor Labor Efficiency•High Defect Rates•Large Batches• Infrequent improvement
Unclear Journey
•100% Value Add•0 Defects (Internal)•One Piece Continuous Flow•Human Development•Value to Society
The sustainability of system improvements will be achieved by the standardization and is the basis for the next improvement steps.
The standardization allows:• To measure and evaluate improvements.• The exchange of best practices with similar and equal tasks.
Standards
Target ConditionCurrent
State
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Approach
Quick wins using Lean methodologies.Always tie projects to
dollars. Establish measurable benefits expected from each
project.
Quick pace of implementation
requires removal of organizational and
bureaucratic barriers.
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Process
Go to the Gemba for data.
“Grasp the Situation”
Start where the business need is
greatest. Select projects that yield the greatest
impact.A3 is a “working
document”.“Nemawashi”.
Prepare the ground for planting.
A consistent process is used repeatedly.
Background / Business Case:
1. Increasing customer expectations and pressure require
improvements in quality, delivery, and cost.
2. Need to improve cost competitiveness.
Project Name: Hose Line Productivity Improvement
A3 – Document Project Approval
Initial Condition:
Customer
Supplier Final Assemb ly
Fabrica ti on #2
Fabricati on
#1
MR P
Fin ished
Goods
Control
Daily
Customer Sched ule
MRP
Component
Control
Supplier Ord ers
(Week ly EDI )
Custo mer
Orders
(Week ly EDI )
Daily
Orders
AS N
Warehou se
RM
IWIP
Warehouse
FG
Daily Schedule
Daily Ship
Schedule
Shuttle
Shuttle
IWIP
1
2FTT = 98%
OEE = 70%
Sc rap = 2 %
Rewo rk = 1%
Upti me= 70%
EPEI = 3 - 10 Day s
FTT = 96 %
OEE= 50 %
Sc ra p= 2%
Rewo rk = 2%
Upti me= 70 %
EPEI = 2 - 5
Da ys
FTT= 94 %
OEE = 65 %
Scr ap= 2%
Re work = 4%
Up time= 75%
EP EI = 1 – 2 Day s
5
6
3
4
5
7
8
8
9
Expedited
10
8
20 min
1 Day
1 Day
30 min
2 Day s
20 mi n
4 Da ys RM
Pro duction Lea d T ime =
8.3 Day s
Pr oc ess ing Lead Time
= 70 mi n . ( 0. 6%)
Kanban Rack
Kanb
an
Ra
ck
Kanb
an
Rac
k
HFV 6
Jumper
Tube
Punch
Sort
Table
Washer
Drain
Rack
Washe r
Dra in
Rac k
FCBe
nc h
Tool Chest
2. 7L
EF1042
Value
Stream Map
Desc rip tion "Dan a Current F u ture
Stat e Map "
Endfo rm Spagh et ti Dia
gram
SI ZE
Fil e Nam e
Dr aw n B y:
REV
B
SHE ET
1 OF 1
Bead
Ch ecker
EF00
5
3 - H
it
EF006
1 - Hit
WI PRack
EF007
3 - Hit
EF008
EF009
EF001
2 - Hit
EF1041
2.7
EF015
2 - Hit
Cyl in der
Drop
Auto
Loader
2.7 L JR & LH
Skiv e & Punch
Lo a d
Un load
Elec tri c 110 V
EF004
2 - HitEF004
2 - Hit
Load Unload
EF Ma c hine
EF 01 0
Rob ot
Guardi ng
Guard
ing
Gu ard in g
Robo t
Cont r o ll er
35
6
3
6
7
5
4
SPC
Tab
le
4
52
21
1
1
51
5
1
4
511
1
2
2
5
Se per at e
Wor kshop
Te mpl ate :
Qui ck Con nect - Red L ine
Jump er - Bl ue L ine
Masco
RawWIP
RawA
B
Ranso-
hofffC
Bushing
Press
Gantry
Load
Problems / Opportunities:
1. Supplier incoming quality
2. Excessive RM amounts
3. Excessive rework
4. Poor equipment availability (OEE)
5. Excessive WIP amounts
6. Excessive lead-times (M
uda)
7. Multiple scheduling points (Push)
8. Group leader managing scheduling
9. Excessive logistic touches
10. Premium freight co
st
Barriers:
•Supplier Quality System
• Poor OEE (59%) at Fab. 2
Operator Balance Chart
26
52
6054
28
20
Value-AddedWaiting
Takt
Target Condition:
Customer
SupplierPacem
a ker
Customer Speci fi c
Schedul ing Poin
t
Co mplexity Spli t
Fa brica tion #2
Fab ricatio n #1
FIFOCro ss D ock or
Suppl ier
Ware hou se
MRP
AdP
Fin ished
Goods
Con trol
Daily
Cu stome r Sche dule
Overseas
Suppliers
MR P
AdP
Component
Control
A
Source Glob al Fe el Lo cal
Su pplier Orders
(Week ly EDI)
Custo mer
Orders
(Weekly EDI)
Dai ly
Orders
e-Kanba n
3x Day
Gre en Loop (A Component Suppliers )
Line side “A
” component
Su permarket MIN
/MAX
FG Supe rmarket
MIN/MAX
FG loca ted/
visual ized in
manufacturing
bui ldin g war ehouse
ASN
O X O X O X
RM located/
visual ized in
manufacturing
building wareh
ouse
Wa reho use (RM)
NAFTA
Supplie rs
RM del ivered to POU locations
establ is hed by value stream(A Items ) EP E Day or
Shi p ment W in dow then
stri ve to sh ort en over time
Ridg ed M IN/MAX
Rul es – Mi nimum
leve l i nven tory
Cycle + Buf fer +
Saf ety St ocks
EPEI Goa l to matc h th e
pa cema ker
Ridged M IN/MAX
Rul e s – Min imum le vel
invent or y
EPEI Goa l to m atch
the pace ma ke r
20 Mi n . Loop s
1 Day on hand RM
Dai ly Del iv eries
MascoRawWIP
RawA
B
Ranso-
hofffC
Bushing
Press
Gantry
Load
Operator Balance Chart
67
60
7
010
2030
4050
6070
80
MachiningInspect/Pack
Value-AddedWaiting
Takt
•Reduce from 3 Oper ators to 2 in Upper
Machining
•El imination of 106 seconds of labor in Upper
Machining
•OEE > 88% (with FWD)
•OEE >70% (w/o FWD)
Implementation:
Imp lementation:
#
Task
Resp.
Person
Target
Date
Feb 05
Mar 05
Apr 05
May 05
Jun 05
Jul 05
Aug
05
Sep 05
Oct 05
Nov 05
ReviewReview
1Fix Clamping to
el iminate operator
checking clamp force
Roger
Marshall
4/1/05
2Reprogram Masco to
sep arate operator from
machine (PCT=88)
Grant
Glasscock
5/1/05
3Standardize Blow-off
(PCT=77)
Brian
Zo lman
3/1/05
4Imp rove clamp/
unc lamp speed
(PCT=75)
Roger
Marshall
4/1/05
5Imp rove fixture rotation
rate (PCT=74)
Grant
Glasscock
4/1/05
6ROI Analys is : Re-
balance Gantry (13 sec
reduction)
Grant
Glasscock
5/1/05
7ROI An alysis: R
e-
balance Masco
(PCT=70)
Matt Jaco by 5/1/05
8ROI Analys is : Blow -off
mach ine (PCT=63)
Roger
Marshall
4/1/05
9Reduce from 3 to 2
op erators p er shift on
Lower Machining cel l
Roger
Marshall
7/1/05
10Reduce from 3 to 2
operators per shift on
Finishing cell
Roger
Marshall
9/1/05
Indicators
Indicators:
CurrentTarget
DeltaIntangibles:
Lead Time
1.52 days.95 days
-37%
Less variation in the assembly process
Lower C/O time by 66%
Similar results can be achieved on the
APOX1 and ASOX assembly lines
Labor productivity stability
at a wide
ran ge of demand
Reduced material handling and
conveyance of WIP
WIP
12,168
7614
-37%
Productivity (MH/100)
6.00
4.78
-20%
Bubble Diagram (Paths)
54
2
-96%
OBC (% over ideal)
25%
8%
-68%
WIP Value
$13,624$8,525
-$5,099
Labor Cost ($/year)
$352,000$253,500
-$98,500
Approval Project Team Leader:
Roger Smith
Team Members:
J im F isher , J ohn Davis
Mark J ohnson Scott Eric
Sara Lewis
Management:
Tom Burdette
Plan
Do
Check
ActGrasp the
SituationStandardize
05/02/2023