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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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• 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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– 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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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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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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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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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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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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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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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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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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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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Dedicated Wax Training Area Today
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Wax Defect - Parting Line
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Wax Department Tools
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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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Metal End Defect
Cold Shut
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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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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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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%
50
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.
52
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
54
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
56
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