Building Competitive Manufacturing Systems in Wood Composite

Manufacturing

John R. Noffsinger

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Presentation Outline

Competitive CompanyCompetitive AdvantageCompetitive Initiatives / Empowerment• TQM• Six Sigma• Lean Manufacturing• Lean Six Sigma

Case Study

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What Makes a Competitive Company?

Customer FocusedAn abiding Concern for People The Celebration of Trial and Error

Peters and Waterman In Search of Excellence

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What is a Customer Focused Company?

Think and talk about their customers a lot.Tend to resolve priority issues in favor of the profitable impact on the customer.Employ a “whatever it takes” policy in trying to remedy the situation for a dissatisfied customer.

Eckes Six Sigma Revolution

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What is a Competitive Company?

Understand what they can and cannot be best at.Confront the brutal facts (yet never give up).A culture of discipline with an ethic of entrepreneurship.Technology accelerators but do not use it as the primary means of transformation.

Collins Good to Great

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What is a Competitive Advantage?Assesses Its Niche, Compares to Competitors, and Enhances its position – by adding more value to suppliers and customers than do its competitors.”

Two Critical Elements:1. Perceived Customer Value, and 2. Sources of Uniqueness.

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Perceived Customer Value

Competitive Advantage is achieved if and only if customers perceive that they receive value from their transactions with a business.It is vital that all employees be dedicated to meeting customers’ needs.

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Source of Uniqueness

Economic Capability• Lower Cost

Marketing Capability• Differentiation

Technological Capability• Unique Way of Building & Delivering Products

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COMPETITIVE ADVANTAGE

KNOWLEDGE About Processes

PEOPLE - KNOWLEDGE they have with regards to the Business’ Processes, and the Company’s Culture of “CONTINUOUS IMPROVEMENT”

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COMPETITIVE ADVANTAGE

Data can be Knowledge – A Competitive Advantage

But Data WITHOUT Knowledge is NOT a Competitive Advantage

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How do We Tap Into the Knowledge of the People?

Participative Management Movement to empower peopleTotal Quality Management Movement – Teach People Problem Solving DisciplineHigh Performance Work Systems

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How do We Tap Into the Knowledge of the People?

Six Sigma (Quality) – Set a GoalLean Manufacturing (Speed) – Improve the Process EfficiencyLean Six Sigma – Speedy (Lean) Quality (Six Sigma)

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Six SigmaSix Sigma Ingredients = Six Sigma Capability• Genuine focus on the Customer• Data and Fact driven management• Process focused, management, and

improvement• Proactive management• Boundary Less Collaboration• Drive for Perfection, Tolerate Failure.

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Six Sigma Breakthrough StrategyTHE SIX SIGMA ROAD MAP

STAGE

BREAKTHROUGH STRATEGY PHASE OBJECTIVE

Identification Recognize Define

Identify Key Business Issues

Characterization Measure Analyze

Understand Current Performance Levels

Optimization Improve Control

Achieve Breakthrough Improvement

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Integrate Transform How Day-to-Day Business is Conducted

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Six Sigma

Strategies:• Process Improvement• Process Design/Redesign• Process Management

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Six Sigma – Process Improvement

Find the critical Xs (causes) that create the Unwanted Ys (defects) produced by the process.

Five Step Process - DMAIC:Define the problem and what the customer requiresMeasure the defects and process operationAnalyze the data and find the causes for the problemImprove the process to remove causes of the defectsControl the process to make sure the defects don’t recur

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LEAN MANUFACTURING

Process Speed and Efficiency.

Continuous Improvement through Self-directed Work Force and Driven by Out-Put Based Measures Aligned with Customer Performance Criteria.

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LEAN MANUFACTURING - Elements

Manufacturing Flow Organization Process ControlMetrics Logistics

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LEAN MANUFACTURING – Process Control

Total Productive Maintenance• Preventative maintenance • Corrective maintenance • Maintenance prevention

Poka-Yoke or mistake proofingStatistical Process Control

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LEAN MANUFACTURING + SIX SIGMA

Six Sigma Focused more on Quality than Speed.

The Lean Methods are better at improving Process Flow and Speed than on Improving Quality.

Combining Both Concepts we get SPEEDY (lean) QUALITY (six sigma)

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Foundation for Lean Six Sigma

Delight Customers by Improving Quality and Speed of DeliveryImprove their Processes by Reducing Variation / Defects and Improving Process FlowTeam Work and Sharing IdeasBased on Facts and Data.

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Laws of Lean Six Sigma

Law of the MarketLaw of FlexibilityLaw of FocusLaw of Velocity Law of Complexity and Cost

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Lean Six Sigma Project

DMAIC Define

Measure Analyze

Improve Control

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Summary

Competitive Initiatives such as TQM, Six Sigma, and Lean involve:• customer focus and • empowering employees by providing them

processes to improve the process / product by unlocking the data to reduce variation and defects

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CASE STUDY Mat Formation – What can you see in the data

Define: Reduce the cross machine weight variation. Measure: Data from numerous panel tests Analyze: Correlation between sample weight and strength. Measure: Series of studies on the forming process including:• complete master panel cut up, • cross panel density strips

Analyze: Forming was identified as the Root Cause

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CASE STUDY Mat Formation – What can you see in the data

Improve: Material flow was evaluated and “smoothed” and modified the forming head orientation roll spacing and “tooth” design. Control: New Process monitoring procedures instituted including control charting cross panel strip data.

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Conclusions

Competitive Manufacturing is Customer Focused Involves Employees in Gaining an Understanding of the Customer’s Needs and Requirements Continually Improves the Process and Product so the Process is LEAN (speed) and Product is QUALITY (six sigma)

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Conclusions

A Competitive Manufacturer will NOT Exist if it Makes the Lowest Cost, Highest Quality

“Buggy Whips”

A Competitive Manufacturer has to Understand the Customers’ Needs and Requirements + Low Cost, High Quality