“Chasing Waste” - MDEQ• CPS consists of three sub systems and fifteen guiding principles. The...

Caterpillar Confidential: Green

“Chasing Waste”

Utilizing 6sigma and Caterpillar Production Systems (CPS) to Achieve Environmental Goals


Facility Overview

• Facility Opened in March 1998

• 30 Acre Site

• 183,000 Square Feet

• Current Active Employees– 15 Caterpillar Management– 155 Caterpillar Hourly

– 15 Contract Workers (Maintenance and Chemical Management)

• Second Largest Manufacturing Employer in Oxford


Product LineThe Caterpillar High Performance Extrusions (HPE) Facility manufactures high-pressure hydraulic hose couplings for use with Caterpillar XT hose in all available sizes from 3/8" to 2" in diameter. These couplings are assembled from components that have been machined from near net shape extrusions, or cold-formed steel basics.

There are several steps in the process of manufacturing these couplings. These include Annealing, Coating, Extrusion, Machining, and Assembly.


TornadoFebruary 5, 2008


Opportunity

Caterpillar looked upon the rebuilding process as an opportunity to make improvements to the facility. Some of those improvements were specifically aimed at improving environmental performance.• New energy efficient lighting• New energy efficient HVAC units• New insulated white roof system• Redesigned wastewater treatment system• Redesigned chemical storage area


2009 Environmental Goals and Accomplishments

• Goal: 90% recycled material (Year end results 97%)• Goal: <12,500 mt CO2 equivalents (Year end results 7,750)• Goal: <12.5m gals municipal water (Year end results 6.8m gals)

2010 Environmental Goals

• Goal:100% recycled material• Goal: <8,500 mt CO2 equivalents• Goal: <7.5m gals municipal water used


6SigmaCaterpillar launched 6Sigma globally in 2001. 6Sigma methodology is used to focus on “real problems”. It allows quick results and helps sustain improvements.

DMAIC ProcessDefine – How is business impacted?Measure – What is the extent of the problem?Analyze – What is the root cause?Improve – What is the solution?Control – Implementation plan


6Sigma (Reduction of Spent Cleaner- Example)

Define – Spent cleaner volumes were too high

Measure – Drag out and carryover was contaminating cleaner tanks

Analyze – Barrels are not allowed to rotate and drip before moving to next station

Improve – Add dwell time and rotation to programs to allow excess material to drain before moving to next station

Control – Train employees and Implement changes to all Standard work documents


Caterpillar Production Systems (CPS)

• In 2006 Caterpillar implemented CPS to provide commonality across the various processes

• CPS consists of three sub systems and fifteen guiding principles

The Operating system is focused on waste elimination using 6Sigma and lean tools. Guiding principles are; Chase Waste, Pull, Make Value Flow, Drive Standard Work,Even the Load, and Validate our processes

The Cultural system is focused on making change possible and improving the way we work. Guiding principles are;Put Safety First, Take the Customers View, Go,See,Act, Stop to Fix, Develop People.

The Management system is focused on creating measurements and the management structure to support continuous improvement. Guiding principles are; Actively Listen, Make it Visual, Align the Targets, Act Decisively


8 Wastes


Caterpillar Production Systems (CPS)• Make it Visual/Align the Targets – Communicate goals and post

results so that employees can see progress.• Make Value Flow - Standardized scheduling and flow at the phosphate

coating operation reduced waste from over processing and re-work.• Go,See,Act – Empower employees to make suggestions and report

activities that don’t comply with procedures (Continuous Improvement cards).

• Drive Standard Work - Standard Work created to shutdown boilers and other high energy use equipment during extended shutdown periods.

• Develop People – Establish training program for all employees on waste minimization and recycling program.

• Validate our Processes – Investigation of water usage created 6Sigma project to reduce water consumption through flow restriction and recycling of water.


Questions?

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