Companion Line

Kaizen Event

www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

Companion Line Flow
LOT SIZE RULE

Make One
Move One

INDIVIDUAL EFFICIENCY VS. SYSTEM EFFICIENCY

We are committed to overall system efficiency rather than just the
efficiency of individual processes.
www.wyrickenterprises.com
We are a TEAM!
949-461-0279 Lean & Six Sigma Integration Specialists
 Kaizen Mandate

Eliminate waste
Create a more efficient layout
Implement and sustain 5S
Create a tracking and reporting system

www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

 Project Scope
¾5S the work area
¾Redesign the work area
¾Flow and flexibility
¾Visual workspace, point of use tools
¾Cost effective
¾Define/implement min/max inventory levels
¾Eliminate waste
¾Create Communications Board with measures
¾Document Non-conformance issues
¾Standardize work (SOP)
www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists
 Kaizen Deliverables
Creating Shorter, Simpler and Smoother Processes

¾ Establish ground rules

¾ Create a team charter
(scope, boundaries, expectations, deliverables, ROI)

¾ Develop a current state map

¾ Identify necessary data, people, resources
¾ Determine Metrics and Indicators
¾ Incorporate data and metrics into current
state map
www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists
 Kaizen Deliverables
Creating Shorter, Simpler and Smoother Processes

¾ Create detailed future state map

¾ Perform Gap analysis
¾ Assign teams for immediate process changes
¾ Assign teams for long term system changes
¾ Implement immediate changes
¾ Document and quantify improvements
¾ Create time-lines and follow-through plans
¾ Prepare and present report-out

www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

 Lean in Action

www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

 Lean in Action

www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

 Old Layout of Work Area

www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

 Old Process Flow Map

www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

 Original Spaghetti Diagram 1
Pull Order Flow

www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

 Original Spaghetti Diagram 3
Companion Unit Flow

www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

 Original Time and Distance
¾Total Time = 2253 min
¾Total Distance = 8908 ft
¾Total VA Time = 690 min
¾Total Steps = 54
¾Total VA Steps = 19

www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

 BEFORE Pictures

www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

 BEFORE Pictures

www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

 BEFORE Pictures

www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

 Non-Conformance
Service Calls

¾2 Methods to Resolve
¾Phone
¾3rd party service provider @ $95/hour
¾Average Service Call = $800
¾Total Companion Service Calls = 756
¾Total Cost of Service Calls = $604,800
¾16 Out of Box Failures

www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

 Non-Conformance
Companion PARs and Deviations
¾59 PARs since March 2003
¾45 Deviations in last 3 months
¾Estimated cost of $100 per deviation
¾Cost of deviations last 3 months = $4,500
¾Companion communicator spends 8 hours per
week sorting and tracking documentation for
the area

www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

 Non-Conformance
Companion Rework
¾ Time/Labor Cost
¾ 67% of rework time is due to engineering changes
¾ 25% is due to bad parts
¾ Cost for week of June 13, 2005 = $2,800
¾ Annual Cost = $145,600
¾ Vendor errors
(vendor errors of fabricated items are generally fixed by assembly personnel and no
cost is captured. Items not able to be repaired by assembly are sent to the machine
shop. Samples are:
¾ Side panels: broken welds (30), 6 hrs, $259
¾ Stud and paint: 196 parts, 5.25 hrs, $218

www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

 Non-Conformance
Companion Rework
¾Samples of items returned to vendor
¾Mother board, 27 bad out of 349 (7.7%) since
February 2005
¾Pump board, 97 bad out of 504 (19.2%) since
January 2005
¾Cable set D, 39 bad out of 340 (11.5%) since
December 2005
¾Display cable for touch screen, 82 bad out of 254
(32.3%) since December 2004

www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

 Non-Conformance
Summary
We do not track nonconformance very well.
A lot of rework is done by assembly personnel
and the cost is not captured. However, from
the data we do have, it is easy to see that
vendors are hurting the Companion assembly
department.
92% of the rework is generated outside of the
department, but it cost the department an
annual average of $145,000 to fix it.

www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

 New Layout and Flow of Work Area

www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

 AFTER Pictures

www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

 AFTER Pictures

www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

 New Time and Distance
¾Total Time = 822 min
¾Total Distance = 190 ft
¾Total VA Time = 578 min
¾Total Steps = 31
¾Total VA Steps = 7

www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

 Return On Investment
¾Reduction of overall time by 36% (1431
minutes)
¾Reduced movement by 7908 feet
¾Total steps reduced from 54 to 31
¾Value added increased from 31% to 70%
¾Expenditures for the event = $7,500 (see
30/60 day action plan for details)

www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists

 Return On Investment

Overall benefit is an increase in capacity to

run at 4 units per day from 2.1 units per day.

This translates to a cost savings of $5400 per

unit.

www.wyrickenterprises.com 949-461-0279 Lean & Six Sigma Integration Specialists