Post on 20-Jan-2015
description
POLCA Implementationat Olsen Engineering
International QRM ConferenceMadison, WisconsinOctober 29th 2002
Partners: Olsen Engineering John Deere
• Mark Dawson Plant Manager• Brad Miller Assistant Plant Manager• Doug Chadwick Production Control
Manager
• Todd Hansel John Deere Supply Development
Olsen Engineering, L.P.
• $ 22M in Sales• 11 Year Partner Supplier to John
Deere• 160 Employees• Over 5,000 part numbers• In- House Heat Treat & Zinc Plating• 138,000 Square foot Facility
Products
• 50% Pins• 25% Bushings• 15%
Miscellaneous machine parts & weldments
• 10% Bending/Rollover Protection
Pins BushingsMisc. Bend/ Rops
POLCA Implementation
• Over 3,500 Different Pin Types
ProcessesMany dissimilar routings- examples of just a few
Many dissimilar routings- examples of just a few
C u to f f / P in C e ll P in C e l l / I n d u c t io n I n d u c t io n / G r in d G r in d / Z in c
C u to f f / I n d u c t io n In d u c t io n / G r in d
C u to f f
C u to ff / P in C e ll P in C e ll / In d u c t io n In d u c t io n / G r in d G r in d / W e ld W e ld / Z in c
C O / P C
P C / IN D
IN D / G R
G R / C R
C R / G R
G R / W L D
W L D / ZN C
PROJECTBACKGROUND
Project Background
• Previous State– Inventory Everywhere: WIP and FG– Long Lead Times: 4 – 6 weeks– Hot Jobs
• Due to Long Lead Times, Micro Scheduling
– Scheduling: 3+ Schedulers• Working Weekends• Lead Men Scheduling Also
Project Background
• Need For Improvement
– Customer Demands
• Cost Reduction
• Competitive Analyses
• Kanban Direct (Lower Lead Times)
– Company Profitability
Project Background
• Investigation of Options
– Kanban
– Cells
– Pull without Cards
–POLCA!
POLCA
• POLCA Implementation Workshop– Hosted by QRM, February 20, 2002
– Basic Outline
– Pre-Requisites
– Helpful Suggestions
– Baseline for Building Strategy
POLCA
• Strategy– Assemble The Team
• Factory Managers
• Schedulers
• “The Deere Guy”
• “The Get It Done Guy”
• Department Leads and Others as Needed
POLCA
• Strategy
– Hardened Pins First
• About 50% of Total Business
• Covers Majority of Processes in Plant
• Will Show Most Significant Results
• Success Here Makes Easy Transition to
Other Areas
POLCA
• Strategy– Card Design & Card Management
– Card Quantities
– Procedures
– Quantum
– Authorization List
– HL/MRP
– FIFO Staging Areas/Racks
POLCA Cards
POLCA Station
POLCA Management
POLCA Staging Racks
POLCA
• Strategy– Training (Lean, QRM, and POLCA
Principles)– Support Projects
• 5S – Housekeeping• Setup Reduction• Cross-Training• Total Preventative Maintenance• Quality Improvements: Reject and Rework
POLCA
• Strategy
–JUST DO IT!
IMPLEMENTATION
Implementation
1) Decide “Support Work” needed and timing
2) Review routings3) Choose Families4) Prepare Staging Areas (Racks)5) Prepare POLCA stations6) Material Handling Trigger Boards7) Train Operators
Implementation
8) Tag Jobs and Organize on Racks9) Launch Process10) Monitor and Adjust Repeatedly
11) Proceed to Next Loop When Previous Loop is Stabilized
Implementation
• Support Work is key and requires substantial effort
• Steps 2 through 11 are concentrated efforts focused on one loop and are faster paced
Implementation
• We found POLCA implementation came in waves of exciting physical activity and lulls while larger issues were worked out (cross training, management issues, cultural issues, etc..)
Support Work at Olsen Engineering
• Quality Improvement
• Set-up Reduction
• 5S
• Cross Training
• Alternate Work Schedules
We were well on our way with the first three projects before we started POLCA
Some of these were key to the success of POLCA, required strong efforts and consumed large amounts of time
Here is an in-depth look
We were well on our way with the first three projects before we started POLCA
Some of these were key to the success of POLCA, required strong efforts and consumed large amounts of time
Here is an in-depth look
Quality Improvement
JOBS REJECTED AT FINAL INSPECTION
010,00020,00030,00040,00050,00060,00070,000
Jan-0
2
Feb-0
2
Mar-0
2
Apr-02
May-0
2
Jun-0
2
Jul-0
2
Aug-02
Goal is below 10,000 PPM
Pa
rts
pe
r m
illio
n
REWORK HOURS PER
MILLION PRODUCTION HOURS
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
J un-
00
J ul-
00
Aug-
00
Sep-
00
Oct-
00
Nov-
00
Dec-
00
J an-
01
Feb-
01
Mar-
01
Apr-
01
May-
01
J un-
01
J ul-
01
Aug-
01
Sep-
01
Oct-
01
Nov-
01
Dec-
01
J an-
02
Feb-
02
Mar-
02
Apr-
02
May-
02
J un-
02
J ul-
02
Aug-
02
Quality Improvement
We Increased Communications,
Improved In-process Controls
and
Killed Many Root Causes!
We Increased Communications,
Improved In-process Controls
and
Killed Many Root Causes!
Set-Up Reduction
PLANT SET UP EFFICIENCY
50%
60%
70%
80%
90%
100%
110%
SET UP HOURS PERCENT OF
TOTAL OPERATOR HOURS
13%
14%
15%
16%
17%
18%
19%
20%
Set-Up Reduction
We Installed Set-Up Hours Tracking at Every Department
We Held Formal Set Up Reduction Events In Every Process on the “POLCA path”
We Installed Set-Up Hours Tracking at Every Department
We Held Formal Set Up Reduction Events In Every Process on the “POLCA path”
We did 5S
Installed Cleaning Stations-
1) Posted Work Instructions
2) Trained & Made Assignments
3)Performed Audits Relentlessly
Installed Cleaning Stations-
1) Posted Work Instructions
2) Trained & Made Assignments
3)Performed Audits Relentlessly
We removed unnecessary items from the plant for three months running!
We removed unnecessary items from the plant for three months running!
Cross Training
MASS Cross Training of 34 employees in 240 positions was started after first POLCA loop was implemented
MASS Cross Training of 34 employees in 240 positions was started after first POLCA loop was implemented
NameFirst Shift AB Bush AC Bush CNC Lathe CNC Mill Cut Off Fab Grinders Pin Cell Quick Turn Saws/CS Welding
Adams Dennis X XAnderson Larry X X X X X X X XBelk Craig X X XBomia Brad X X X XBrady Mark X X X X X X X X X X XCoon Terry X X X X XFrahs Mark X X X X X XFuller Mike X XGoodell Ed X XHorner Jason XKobilka john X X X X XMeggers Scott X x X no coolant XMelchert Steve X X X X X XPewe Derron X X X X X X X XRicheal Scott X X X X X XSchutt Mark X X X X XSchwien Greg X X X X X XSeible Brian X X XStarling Eric X X X X X XWidel Mike X X X X X X X X X X
Second ShiftEdgar Jeriah X X XFarmer Curtis X X XJewell Harlan X X XKaesbauer Betty Jo X X X XOsborne Eric XRichards Kevin X XSimonsen Dale X XStoker Kris X I XThaxton Julie X XUllrich Erica X XWhitacre Ross X X X X XWiese Dwight X XDon Dewitt X X
Department
A cross training matrix was planned with employees
and posted along with daily job assignments.
Bottlenecks will test the POLCA implementation!
Bottlenecks will test the POLCA implementation!
Alternate Work Schedules
• A Crew & B Crew• B Crew takes break and lunch
opposite of A Crew• We positioned B Crew as a positive:
they would be in line for better raises, improved promotion possibilities and would be more “lay off resistant”
COSTS
Costs
• Cross Training Operators $20,000
• Daily Shipments for Sub-contracting $16,000 Annually
• Racks, Carts, Tags, Cards, Signs$7,000
Costs
• Training $6,000– Lean Manufacturing– Total Productive Maintenance– Seminars– Conferences
• Dedicated Implementation Resources $35,000
BENEFITS OF POLCA
Benefits of Polca
• Cycle Time Reduction• WIP Reduction• Visual Management• Uncovers “Hidden” Problems• Cultural Change
Cycle (lead) Time Reduction
Days Reduced % Improved
• 21 > 6.6 68%
• 28 > 14.3 48%
• 30.6 > 15 51%
• 30.3 > 23.8 22%
Cycle (Lead) Time Reduction
5
10
15
20
25
30
35
40
PrePOLCA
6/ 10/ 02 8/ 5/ 02 9/ 6/ 02
21 Days 28 Days35 Days 42 Days
POLCA WIP Reduction
POLCA WIP Reduction
• Pin Cells • 82% Reduction
POLCA WIP Reduction
• Centerless Grinding
• 90% Reduction
POLCA WIP Reduction
• Welding• 90% Reduction
POLCA WIP Reduction
•Heat Treat•75% Reduction
0102030405060708090
100
Pre POLCA
Immediate Bottleneck Visualization
Card Holders
Labor Re-deployment
• Move employees to bottleneck areas
Un-covers “hidden” Problems
• Material Availability
• Perishable Tooling Availability
• Quality Issues• Machine Down
Time• Long Setups
Cultural Change
• Continuous improvement
LESSONS LEARNED
Lessons Learned
• Visual Management• Part Families• Support Activities• Outside Contractors• It Spreads!• Don’t Over-analyze, Just Do It!
POLCA Provides Visual Management
• Color Coding• Easy to know quantity of jobs an
area can produce- important for capacity planning
• Immediate bottleneck visualization• Upstream and downstream
scheduling conditions immediately assessable
Visual Management-Color Coding
• Improves Organization-Provides simple “routing instructions”
• Mistake Proofs-An out of place item is seen a
“mile away”
Visual Management-Color Coding
• Area Identifiers
Visual Management- Color Coding
• POLCA STATIONS
Visual Management- Color Coding
• POLCA Cards• Container Tags
Part Families
Part families should be seriously considered- through standardization they facilitate: • Building cells• Quicker set-ups• Ease of operator substitution in
times of bottlenecks• Better POLCA flow
Support Activities
• Before starting POLCA, consider the roadblocks that may keep you from a successful start up
• Most groundwork involves the tenets of QRM and may require six to twelve months to implement
Outside Subcontractors
• Daily shipments are helpful• If you have very cooperative
subcontractors- teach them to POLCA• To get up and running quickly, maintain
a POLCA station in your plant for each subcontractor. Material handlers operate the system.
It Spreads to Other Applications!
• Material Pre-stage Triggers were also installed in non-POLCA areas
• They led to improved “first operation” scheduling
It Spreads in Popularity!
• We picked up supporters through the first loop implementation
• An implementation team member gladly became a full time POLCA resource and is one of our strongest believers in POLCA
• Another volunteered to help the team set-up POLCA in the next loops
Don’t Over Analyze - Just Do It!
• Must have area experts and scheduling experts directly involved in implementation.
• Experts must be authorized to make quick decisions and major adjustments. Start with a high quantity of cards per loop and work it down as you see the affects of POLCA.
• Remember that the changes are reversible!• Embrace failure and learn from it.