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1 1 Bott om Line Im pact of J I: 5-Year Case Study  J une 6, 2007  TWI Summ i t June 5-6, 2007 2 • Lean Ac ti vi ti es bef or e TWI ESC O St rat egi c Planni ng Proc ess St rategy Map The Role of T WI J I Tr ain ing ESCO Appr oach is T he TOY OTA Way • Result s Achieved • Standar d Wo rk L ess ons from ESCO Questions Session Outline

Ejemplo Twi en Escco

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1

Bottom Line Impact of J I:5-Year Case Study

 J une 6, 2007

 TWI Summit

June 5-6, 2007

2

• Lean Activities before TWI

• ESCO Strategic Planning Process

• Strategy Map

• The Role of TWI JI Training

• ESCO Approach is The TOYOTA Way

• Results Achieved

• Standard Work Lessons from ESCO

• Questions

Session Outline

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3

• ESCO is a network of companies andalliances specializing in challengingproduction that requires exotic alloys orcomplex geometries which are used in theaerospace and industrial gas turbinemarkets.

• Produce and source from global locationsincluding the United States, Mexico, WesternEurope, Eastern Europe, China and India.

4

Investment Casting Business Climate

• Customers are very large i.e., General Electric,Siemens-Westinghouse, Solar Turbines, RollsRoyce, Pratt & Whitney.

• There is enormous price pressure. Somecustomers are demanding reductions in the pricethey pay for our products 6% to 12% immediatelyand 3% per year for the next 3 years.

• Customers looking to offshore / low cost poles tosource product.

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5

Lean History of the Plant

Before Strategic Planning

• Cellular Manufacturing– Remove the Departmental “Silos”.

• Kaizen– A Continuous Improvement philosophy of 

“change for the better”

• Synchronous Manufacturing– Constraint Management

• Six Sigma– Addressing inconsistencies in the process with

improvements driven and supported by data.

6

High performance ResultsCustomers Employees

Shareholders

   R  e  s  u   l   t  s

   I  n   t  e  r  n  a   l

   L  e  a  r  n   i  n  g   &   G  r  o  w   t   h

   C  u  s   t  o  m  e  r

Capability To Acquire,Develop &Launch New Products

Safety, Producti vity,Cost, Asset Utilization

Operational Excellence

Enhance StrategicSkills/TalentKnow how

Integration

Innovation/Growth

Establish and maintain ahigh performancecustomer focusedteam based culture

High PerformanceResponsive/Adaptive

Shared vision/Team Based

Customer Focus

Pipeline

LeadershipDevelopment

Self Management

Pull in same direction

Performance Management

Communications

Strategic Planning

Knowledge/peoplesharing

Double Loop Learning

Multi Skilled

Application of Technology

Workforce Training

Profitable Growth

Customer Management

 Added Value

Finished Product

Delivery Instant, Flawless,

Customer ServiceQuality

Span 0-5 Days

0 Returns

Meet Specs

Integration of functions toProvide seamless service

Lead Time

Reduce Rework by 50%

Price

Lost Time Accidents,

Scrap, Throughput

Continuous Improvement / Kaizen

Six Sigma / Synchronous Mfg.

Build 

Leadership

Low Short

Speed to MarketProcess Robustness

Dimensional Capability

Develop Supplier Base Capable of 

Providing Supplies and Services

Targeted market segments

Human Capital Organization Capital - The ability to mobili ze and sustain the process of str ategy execution

Solidification Modeling Rapid PrototypingCasting

Alignment

2001 Strategy Map

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7

– Reduce inventory

– Increase speed of flow

– Decrease lead time for the customer

– Improve ability to take drop in ordersfor the replacement parts market

Strategic Objectives

8

Strategic J ob Family: Wax Mold Assy.

 Analysis:

>On-time release from Wax Dept. averaged 73% in 2002.>Significant variability in techniques used by assemblers.>Significant defects in the initial completed molds.>Rework increased cost and slowed the flow of work.

 Action:

Identify competency constraints (combination of skills,know how, and process) which were impacting on ourability to deliver our customer value proposition.

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9

Quality Begins in the Wax Department

10

Employees were either being trained• Utilizing the buddy technique, or• Assigning one of our best employees to

train the new employee

The company searched for a repeatable andverifiable method for training and foundwhat they had been looking for in the TWI

Job Instruction (JI) Program.

Approach to Training Not Effective

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11

Job Instruction Training (JI)

How to teach people to quickly learnto do a job

correctly,

safely, and

conscientiously.

12

No. __________ 

JOB INSTRUCTION BREAKDOWN SHEET

Operation: _______________ ______________ _______________ ________ 

Parts: ________________________________________________________ 

 Tools & Materials: ___ _____ _____ _____ _____ _____ _________ _________ 

A logical segment of theoperation when somethinghappens to advance the work.

Anything in a step that might—1.Make or break the job2.Injure the worker3.Make the work easier to do, i.e.

“knack”, “trick”, special timing, bitof special information

Reasons for each key point

IMPORTANT STEPS KEY POINTS REASONS

Standard Training Format

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13

Important Steps A logical segment of the operationwhen something happens to advancethe work.Putting a new blade in hack saw.

Key Points Anything in a step that might—• Make or break the job• Injure the worker• Make the work easier to do, i.e. “knack”,

“trick”, special timing, bit of specialinformation, etc.

That 5 or 10% of a the hard or tricky parts of a job.

Reasons  The reason for each Key PointPeople learn better when they know why they do things.

Repeatable Format

What

Why

How

14

Verifiable Element

Step 1 - Prepare the Worker

Step 2 - Present the Operation

Step 3 – Try out Performance 

Step 4 - Follow-up

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15

 J I Training Timetable

16

Human Capital Readiness Program

ESCO-Syracuse Strategy Map

(Partial)

Financial

High performance resultsfor our customers, employees

and stakeholders

Profitable growthAsset

utilization

P ri ce Del ivery R elati onsCustomerReturns

Quality

Customer 

Internal

Reduce Reworkby 50%

Operational Excellence

Flexible Manufacturing

Human Capital

MoldAssembly

Strategic

Job

Family

# Required 30

Define Competency Profile

Human Capital Readiness Report

 Assess Strategi c Readines s

Human CapitalDevelopment Program

 TWI Training Templates

• Each cell

• Each skill

Identify

Strategic

Job Family

1

3

2

1 Turbo

2Solar

. . . . .8

Smarts

. . . .

. . . .Radius GaugeWelderAcidT ankSaw. . . .. . . .

 TotalSkills

CellsSkills

--1011--

26

--1101--

16

--0110--

11

1= Skill requiredfor this cell

0

240

480

720

960

1200

      R    e    a      d      i    n    e    s    s

50%

75%

100%

25%

Goal

IV I II III IV I II

(40%)

(84%)

2002 2003

Level Explanation

1 NotTrained

2 Future Training

3 In Training

4 Certified: Within Cell

5  Trainer: Certified All Cells

Goal

4

How Defined

Local experts built the model,

creating TWI JI template

How Assessed

Monthly and quarterly reviews

conducted by supervisors,

inspectors, and trainers

relative to TWI JI template

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17

Define Competency Profile2

Competency Profiles for Mold Assembly

1 Turbo

2Solar

. . . . .8

SmallParts

. . . .Radius GaugeWelderAcid TankSaw. . . .. . . .

 Total Skills

CellsSkills

-1011--

26

-1101--

16

-0110--

11

1 =Skill required for this cell

18

 Assess Strategic Readiness

Record Progress

Level Explanation

1 Not Trained

2 Future Training

3 In Training

4 Certified: Within Cell

5  Trainer: Certified All Cells

Goal

3

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19

Human Capital Development Program

Development a Plan to Close Gaps

 TWI Training Templates

• Each Skill

• Each Cell

• Within Cells

• Within Departments

4

20

• Random audits using the J I breakdown once anemployee has been trained on a job.

• Operators are qualified by element after passingsix consecutive audits on that element.

• Goal is to qualify all employees in the elementscommon for all lines and then qualify people for jobs within a line.

• Once they are qualified within a line, trainingcontinues with the goal for all people in the

department to become qualified in all lines.• Cross functional training between departments.Benefit: Maximum flexibility for production to

move employees as required bycustomer demand.

Audit Process to Sustain Training

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21

0

500

1000

1500

2000

2500

3000

3500

4000

Defects Found

 J anFebMarAprMayJun J ul AugSepOctNovDec

Months

Wax Department Assembly Initial Defects

2002

2003

2004

2003 vs. 2002 75% reduction

2004 vs. 2003 83% reduction

2004 vs. 2002 96% reduction

Impact on Bottom Line: Reduced Rework

22

Increased Readiness

Human Capital Readiness Report

0

240

480

720

960

1200

      R

    e    a      d      i    n    e    s    s

50%

75%

100%

25%

Goal

IV I II III IV I II

(40%)

(84%)

2002 2003

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23

2002 - 73.0%

2003 - 89.5%

2004 - 98.6%

Average On-Time Release Shot Up

Improved Mold Release Time

24

 Training Time went from 2 mos. to 2 weeks

Cycle time reduction 64%

Inventory reduction 50%

On time delivery improvement 80%

Other Outcomes

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25

WAX RELEASE

20

30

40

50

60

70

80

90

100

 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

MONTHS

   %    O

   N   T   I   M   E

2002

2003

2004

Significant leveling of month to monthVariability of On-Time Release of Molds

Stabilized the Wax Process

26

50 55 60 65 70 75 80 85 90 95

Score

1999 Data

2003 Data

2003

1999

Significant Improvement in Performance Reviews

Surprising Outcome

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27

Dedicated Wax Training Area Today

28

Wax Defect - Parting Line

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29

Wax Department Tools

30

Relationship Between Internal Method Sheet(IMS) and J ob Instruction Training (J I)

 The IMS - provides the customer specification

Does not specify the techniques for using the tools.

 The J I Breakdown

Is used to teach the safe and proper use of the tools

and the techniques to meet customer specifications.

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Wax Trim Internal Method Sheet (IMS) ALLOWABLE:

POSITIVES: ___NONE ALLOWED________ NEGATIVES: ___NONE ALLOWED_________ MISMATCH: ___NONE ALLOWED__________ FLOW LINES: ___NONE ALLOWED_________ PARTING LINES: ___NONE ALLOWED______ INJECTION FEED HEIGHT:_________________ 

NOTE: PATTERNS MUST BE X-RAYED 100% BEFORE ASSEMBLY -

Do not set patterns up unless X-ray is complete and results are in!

TRIMMING COMPONENTS:

1. Injected patterns 101. Injected patterns 102. S2. S--355355 (GATE) 10(GATE) 10

TRIMMING:

1. No nicks, cracks, through defects, flash, air bubbles, or non-fill allowed, unlessotherwise

specified. (CAUTION: Scotch bright lines must be filled in)2. Shellac core,(3) heavy coats, trim after tabs and fill in holes.3. Fill in (5) chaplet holes and slot with hot wax and trim flush.(Be sure holes are not negative).

32

Part: all

Tools and Materials: pattern, pick, air hose, paper towel

Title: trim flash and parting lines

Job Instruction Breakdown Sheet (JI)

 No. ASSM -15

Rev.1

1.dimensional1.same way you took it off  place pattern back on tray4

1.Scratching

2.Negatives

3.radius

1.visuallyinspect3

1.free of debris

2.prevent damage of pattern

1.air hose

2.one piece at a time

 blow off pattern2

1.prevent gouging pattern

2.prevent over trimming

3.Safety

4.keep flash off piece

1.lightly with flat side of pick 

2.one direction starting and stopping in

the same spot

3.away from you

4.over paper towel

remove flash/parting line1

REASONSKEY POINTSIMPORTANT STEPSSTEP

NO.

Wax Trim J ob Instruction Sheet (J I)

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Metal End, Coating, and Foundry

• TWI incorporated into new employee training

• Competency profiles are maintained for allemployees within flow lines.

• Cross-functional training between lines

• Cross-functional training between departments.

• Training maintains a plant wide training matrix.

• TWI Trainers audit, train and retrain on a

continuing basis through the Team Leaders.

 J I Expands from Wax

34

Different Skills for Metal End Repair

Basic Visual Categories:

Blending Discrete Negatives

Blending Positives

Blending Trailing and Leading Edge

Identifying Stones, Belts, Discs

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Metal End Defect

Finning

36

Metal End Defect

Spalling

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37

Metal End Defect

Cold Shut

38

 Training Delivery Approach

•  Team leaders deliver training in Wax area

These people also have an assigned job in the

Wax area

• Dedicated TWI trainers deliver training for theteam leaders in the Metal end

These people never worked in the Metal End

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39

Dedicated Metal End Training Area

Blending

Stations

40

Metal End Visual Tools

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Die Grinder Accessories

42

Metal End Visual IMSVISUAL INSPECTION (rough before hip)

Perform complete visual inspection in accordance with requirements listed below.

All castings shall be sent to HIP.

SPECIFICATIONS:

1) No cracks, cold shuts, porosity, or linear defects permitted.

2) Positives:

a.) Any positives up to .005 high are permitted.

b.) Between .005 and .032 high, maximum of five (5) & in a two (2) inch square (4 square inches) area.

c.) Parting lines and gates: .015 max.

d.) Local positive material a max. of .060 high is permitted in areas to be machined (reference sketch).

Except for core flash at throat area, flash must be .020 max. high.

e.) Positive metal up to .020 high (due to core chaplets) permitted where shown on sketch. If it is

necessary

to blend these areas, then a soft stone must be used. Do Not Over Blend!

3) Negatives:

a.) Negatives less than .015 long permitted with a minimum separation of 3X the maximum indication.

b.) Negatives up to .032 long permitted with a minimum separation of .096.

c.) Any negative which will be completely removed by machining is permitted.

(reference machine stock sketch or machined part)

4) No welding in throat area.

5) Do not over blend throat area. .060 minimum wall thickness must be maintained. Measure all castings

(reference sketch).

6) Use boroscope to inspect core passage 100% for broken cores and any core residue.

REFERENCE WELD TECHNIQUE AS REQUIRED.

NOTE:NOTE: All welded/blended areas must be verified to ensure dimensionsAll welded/blended areas must be verified to ensure dimensions are within B/P limits.are within B/P limits.

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No. Blend-1 (Sm. I & II)

JOB BREAKDOWN SHEET

Operation: BLENDING DISCRETE POSITIVESParts:

 Tools & Materials: Die Grinder/White stone, Dynabrade 80 Grit, Casting, IMS

IMPORTANT STEPS KEY POINTS REASONS

A logical segment of theoperation when somethinghappens to advance the work.

Anything in a step that might—1. Make or break the job2. Injure the worker3. Make the work easier to do,

i.e. “knack”, “trick”, specialtiming, bit of specialinformation 

Reasons for the key points

1. Position Casting 1. Defect visible 1. Avoid overwork

2. Select Tool For Area1. Die grinder/white stone2. Dynabrade/80 grit

1. Minimizes to acceptabledefect

2. Minimizes to acceptabledefect

3. Blend

1. On top of defect2. Constant back & forth

motion3. To acceptable limit

1. Proper starting point2. Smooth transition3. Dimensional quality

44

 Techniqueand Tool Use Training for

Blending a Positive

Metal End Trainee

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45

 J ob Instruction Audit Sheet

ESCO Turbine Technologies – Syracuse

Employee Name: Date:

 J I: Quick Check Basics

( ) Not Acceptable ( ) Acceptable

Comments Identified :

Employee Signature:

 Trainer Signature :

46

Auditing A Trainee

IdentifyingDefects

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Defect Identification Survey

D e f e c t I d e n t if i c a t i o n S u r v e y

E m p l o y e e : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _  

D a t e : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _  

 _ _ _ _ P r e - S u r v e y _ _ _ _ P o s t - S u r v e y

S p a c e s a r e p r o v i d e d b e l o w f o r i d e n t if i c a t i o n o f 1 0d i f f e r e n t d e f e c t s . T h e d e f e c t n u m b e r o f t h e c a s t i n g i s

s h o w n i n t h e l e f t c o l u m n . E n t e r y o u r d e t e r m i n a t i o n o f  

w h a t t h e d e f e c t i s i n t h e a d j a c e n t c o l u m n .

D e f e c t N o .

I n t h e s p a c e p r o v i d e d b e l o w ,w r i t e w h a t y o u w o u l d c a l l t h i s c o n d i t i o n .

# 6

# 8

# 9

# 1 0

# 1 3

# 1 4

# 1 5

# 1 6# 1 9

# 3 0

Pre &

Post

 Training is

Part of the

Audit

48

Defect Identification QuestionnaireDD EE FF EE CC TT TT R R  AA II  N N II  N N GG QQ UU EE SS TT II OO  N N  N N AA II R R  EE  

 N N aa mm ee  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  SS hh ii f f  tt _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _  _   

DD ii r r  ee cc tt ii oo nn ss :: CC ii r r cc ll ee cc oo r r r r ee cc tt aa nn ss ww ee r r   

11 .. R R  ee mm oo vv aa ll oo f f  p p oo ss ii tt ii vv ee ss oo r r  nn ee gg aa tt ii vv ee ss ww ii tt hh ii nn cc uu ss tt oo mm ee r r  ss  p p ee cc ii f f ii cc aa tt ii oo nn oo r r  b b ll uu ee  p p r r  ii nn tt ll ii mm ii tt ss ii ss cc aa ll ll ee d d  ??  AA .. BB ee nn cc hh ii nn gg  BB .. BB ll ee nn d d  ii nn gg  CC .. DD r r ee ss ss ii nn gg  DD .. AA ll ll oo f f  tt hh ee aa  b b oo vv ee  

22 .. WW hh aa tt ii ss aa ss uu r r f f aa cc ee d d  ee  p p r r ee ss ss ii oo nn tt hh aa tt ii ss cc r r ee aa tt ee d d  ii nn ww aa xx tt hh aa tt nn oo r r mm aa ll ll yy hh aa ss r r oo uu nn d d  ee d d  ee d d  gg ee ss ,, cc oo r r nn ee r r ss aa nn d d  b b oo tt tt oo mm ??  AA .. BB ll oo ww hh oo ll ee  BB .. CC ll uu ss tt ee r r   CC .. DD ii ss cc ee r r nn ii b b ll ee  DD .. WW aa xx WW aa ll ll CC hh ee cc k k  MM aa r r k k  ss  

33 .. WW hh aa tt ii ss mm ee tt aa ll r r ee mm oo vv ee d d  b b ee ll oo ww tt hh ee ss uu r r f f aa cc ee aa tt tt hh ee cc uu tt -- oo f f f f  oo  p p ee r r aa tt ii oo nn ??  AA .. DD ee f f ee cc tt  BB .. FF ii ll ll ee tt  CC .. CC uu tt OO f f f f  DD aa mm aa gg ee  DD .. N N oo nn ee oo f f  tt hh ee aa  b b oo vv ee  

44 .. WW hh aa tt ii ss aa tt hh ii nn p p oo ss ii tt ii vv ee ll ii nn ee oo f f  mm ee tt aa ll f f  oo r r mm ee d d  aa ss aa r r ee ss uu ll tt oo f f  ss hh ee ll ll ss  p p ll ii tt tt ii nn gg ??  AA .. MM ee tt aa ll FF ii nn  BB .. PP aa r r  tt ii nn gg LL ii nn ee  CC .. II mm  p p ee r r  f f ee cc tt ii oo nn  DD .. MM ii ss mm aa tt cc hh  

55 .. WW hh aa tt ii ss aa cc r r aa cc k k  -- ll ii k k  ee ii nn d d  ii cc aa tt ii oo nn aa tt ll ee aa ss tt 33 :: 11 .. (( 33 tt ii mm ee ss ll oo nn gg ee r r  tt hh aa nn ii tt ii ss ww ii d d  ee )) ??  AA .. CC oo ll d d  SS hh uu tt  BB .. LL ii nn ee aa r r  DD ee f f ee cc tt  CC .. GG aa ss HH oo ll ee  DD .. PP ii  p p ii nn gg  

66 .. WW hh aa tt ii ss aa p p oo ss ii tt ii vv ee b b uu tt ,, cc aa nn b b ee aa nn ee gg aa tt ii vv ee ss ee aa mm ll ii nn ee ,, cc aa uu ss ee d d  b b yy ss ee  p p aa r r aa tt ii oo nn oo f f  ww aa xx d d  ii ee cc aa vv ii tt yy ii nn ss ee r r tt ss ??  AA .. PP aa r r  tt ii nn gg LL ii nn ee  BB .. II nn d d  ii cc aa tt ii oo nn  CC .. TT hh r r  uu PP oo r r oo ss ii tt yy  

DD .. AA ll ll oo f f  tt hh ee aa  b b oo vv ee  

77 .. WW hh aa tt ii ss r r aa ii ss ee d d  mm ee tt aa ll oo nn tt hh ee ss uu r r f f aa cc ee ??  AA .. PP ii tt tt ii nn gg  BB .. CC aa vv ii tt ii yy  CC .. FF ll oo ww LL ii nn ee  DD .. PP oo ss ii tt ii vv ee ss  

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Results of Defect Audits & Training

Categories Improvement

– Casting Configuration 44%

– Defect Identification 67%

– Quick Check Basics 79%

– Quick Check Advanced 25%

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JI Training = Win/Win

Productivity 

 Although the tools and skills for these areasare dramatically different, cross-trainedemployees are now assigned based on theproduction schedule for a given day.

Employee Satisfaction 

Employees voluntarily move betweendepartments just for a change of pace and tomaintain their overall skills.

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JM Improvement Proposal Sheet

Submitted to: Fred HanbaMade by: Vicki Holdridge & Colleen MillsDepartment: WaxProduct/Part: Date: 1/4/07Operations: Applying Alloy Code to gates

Proposed Improvement: Have alloy code injected onto gates.

Before Improvement: One person 240 seconds (4 min.) per mold Aft er Improvement: One person 10 seconds per mold

Content:

Employees will no longer have to walk to embosser, print cards, cut upalloy codes, use welder and inspect. Also avoids defects from wrongalloy codes being applied.

Savings: 230 seconds per mold (3.83 min.)230 x annual run =annual savings

Special thanks to Fred Hanba for his assistance.

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The three TWI programs work together 

like a three-legged stool — take one leg

away and the stool falls down.

• J R – Positive Environment

• J I – Stable Processes• J M – Continuous Improvement

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August 2001 Balanced Scorecard Strategy Mapping

identifies need for employee training

September 2001 ESCO people attend TWI J M pilot

March 2002 ESCO people attend J I and J R pilots

 J uly 2002 TDO/Patrick Graupp trains 3 ESCOtrainers on how to deliver TWI programs to train people inthe Wax Department in order to meet strategic objectivesto reduce inventory, increase speed of flow, and decreaselead time necessary to compete in replacements market.

April 2005 Initial goals are met. Implement Lean.May 2006 Implement J I training plant wide.

2007 J M is introduced.

A Review of the ESCO/TWI Timeline

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In order to take maximum advantage of theflexible synchronous managementprinciples that were already in use in theback end of the production process, thecompany reorganized the wax area into thesame flow lines as in the finishing area.

 This revealed a significant opportunity to

reduce initial wax defects.

2001 – Lean Reveals Opportunities

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It would be necessary for the Wax Department toreduce Rework by at least 50% to eliminate thebottleneck at the front end of the investmentcasting process.

Utilizing the buddy technique, or assigning bestemployees to train the new employees was notworking.

2002 - Strategic Planning

Reveals a Need

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Identified skills requirements for each cell.

 The simplest cell in Wax required 11 differentactivities, while the most complex cell required 27.

• Determine which jobs were common to all cells.

• Define a competency profile for each job in each cell.

• Create J I Breakdowns for all jobs within cells jobs.

• Assess levels of competency for each person inperforming all jobs within their cell.

• Implemented training plan.

2002 – Introduced J I in Wax

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 The TWI J ob Instruction program wasrecognized by management for itscontribution to this plant becoming thefirst and only recipient to date of theprestigious Platinum Supplier Award fromthe Dallas, Texas based Lockheed MartinMissiles and Fire Control division at apublic award ceremony in Chittenango,NY on June 21, 2005.

2005 – Impact of J I at ESCO

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The TOYOTA WAY/TWI Connection

“The Toyota Way of going to the source, observing indetail, and learning by doing were all very muchinfluenced by TWI and became the backbone of  Toyota’s standardization philosophy…..

the belief that the way to learn about industrialengineering methods was through application on theshop floor and that standardized work should be acooperative effort between the foreman and theworker.”*

The Toyota Way, J effrey K. Liker 2004, pg. 141

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• Standard work is lacking when “the amount of time ittakes to perform a given process varies tremendouslyfrom person to person, across shifts, or over time.”

• “The first step in creating lean processes is to achievea basic level of process stability.”

• “The initial level of stability is generally defined as thecapability to produce consistent results some minimumpercentage of the time.”

• “A simpler indicator (of process stability) would be theability to meet customer requirements with qualityproducts the first time through on time (again, 80

percent or better)”. *

* The TOYOTA WAY Fieldbook, J effrey Liker and David Meier, 2006, pg. 56

The TOYOTA Fieldbook/TWI Connection

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 The TOYOTA Way Fieldbook (2006)Standard work is lacking when “the amount of time it takes

to perform a given process varies tremendously fromperson to person, across shifts, or over time.”pg56

ESCO (2002 - 2005)• Significant variability in techniques used by assemblers.

• On-time release from Wax Dept. averaged 73% in 2002.

• Significant defects in the initial completed molds.

• Rework increased cost and slowed the flow of work.

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 The TOYOTA Way Fieldbook (2006)

“The first step in creating lean processes is to achieve abasic level of process stability.”pg 56

WAX RELEASE

20

30

40

50

60

70

80

90

100

 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

MONTHS

   %    O

   N   T   I   M 2002

2003

2004

ESCO (2002 - 2004)Significant leveling of month to month on-time release of wax molds

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 The TOYOTA Way Fieldbook (2006)

“The initial level of stability is generally defined as thecapability to produce consistent results some

minimum percentage of the time.”pg 56

ESCO (2002 - 2007)Average On-Time Release of Molds from Wax

2002 - 2004 from 73% to 98.6%

2005 - 2007 98 - 99% maintained

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 The TOYOTA Way Fieldbook (2006)“A simpler indicator (of process stability) would bethe ability to meet customer requirements withquality products the first time through on time(again, 80 percent or better)”. pg 56

ESCO (2002 - 2005)• Reduced Rework by 96%• Shipped 25% more product with the same

number of people.• Customer on time delivery improved 80%

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ESCO and TOYOTA TALENT J effrey K. Liker and David Meier, 2007

• “The three steps of the talent development process—determine what is important to teach, teach it, and then verifythat learning occurred—will be repeated continually as newwork methods are developed or as new processes areintroduced.”Pg 60

• “You must understand the organization. Develop anorganization structure for training, develop plans for who willbe trained and developed, and select and develop the trainersthemselves.”pg 54

• “Don’t make the mistake of developing a J ob Instructioncourse, sending people to it, and then expecting them to be‘trainers’. In the J ob Instruction method the follow-up phase of the training is crucial to the overall success.” pg 43

• “By focusing efforts where they yield the greatest benefit andadhering tightly to the most important aspects of the work,

 Toyota is able to consistently produce great results.”pg 114

• “…it is not possible to operate a lean system without highlycapable people, and without a lean system it is not mandatoryto develop highly capable people who can continuouslyimprove the system.”pg 21

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Questions