The TWI Connection With Problem Solving

May 11, 2010

www.donnmfg.comSam Wagner, Director of Advanced Manufacturing

swagner@donnmfg.com320-762-6408

As the Director of Advanced Manufacturing at Donnelly Custom Manufacturing Company in Alexandria, MN, Sam Wagner leads the production, quality, process engineering, training and continuous

How Short Run is Done™

improvement functions. In this role, he is responsible for the identification, assessment and implementation of advanced technologies and process improvements that continue to adapt and advance Donnelly’s short-run expertise. He has been closely involved with implementations of information technologies, Lean manufacturing techniques, quality systems and automation. He holds an MBA from San Diego State University and BS in Engineering Management from the University of North Dakota, and is a Certified Trainer in TWI’s Job Methods. Mr. Wagner’s experience includes executive, management and engineering positions in both high and low volume production of plastic and metal products in a variety of industries including defense and aerospace, agriculture, construction and transportation.

Agenda• Brief Background

– Donnelly Custom Manufacturing Company– Lean and TWI implementation status

• Using TWI to improve quality– The problem– Developing a solution– Demonstration– Results

About Donnelly Custom Manufacturing

• Mission: To Deliver Good Products on Time

• 105,000 sq ft Facility in Alexandria, MN

• 200 Employees

• $29 million in Sales

• 32 Injection Molding Presses (20 to 720 ton)

• 24/7 Production

• Quality Mgmt System certified to ISO 9001 & 13485

• 40-50 Changeovers per day

• Median run: 8 hrs

• 3500+ molds

• 600+ resins

• 250-300 new parts launched per year

Turnover (cumulative YTD)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Jun-

05

Oct

-05

Feb

-06

Jun-

06

Oct

-06

Feb

-07

Jun-

07

Oct

-07

Feb

-08

Jun-

08

Oct

-08

Feb

-09

Jun-

09

Oct

-09

Job Relations (+JI&JM+) BenefitIndustry Average: 34.4%*

Successful Co’s: 25.6%*

* Ref: Plante & Moran 2009 Report of 179 N. American plastics processors (60% injection molders) running 265 separate facilities, as reported in Plastics News, Feb. 25, 2010

Job Instruction Benefits• Two sprue pickers were too many; after

JI training, ten were not enough

• Use in implementing TPM helped sell maintenance group

• Use of JI breakdown structure thinking has improved operating instructions

• Focused classes highly effective– Buddy training – density – Setup training (4 months to 1 month)– CNC operation training – enhancements

Better Use of Technology, Overcoming “We’ve Tried That Before,”

Better Operating Instructions, Quicker & More Effective Training

Better Use of Technology, Overcoming “We’ve Tried That Before,”

Better Operating Instructions, Quicker & More Effective Training

Job Methods Improvement Activity

0

50

100

150

200

250

Jan-

06

Mar

-06

May

-06

Jul-0

6

Sep

-06

Nov

-06

Jan-

07

Mar

-07

May

-07

Jul-0

7

Sep

-07

Nov

-07

Jan-

08

Mar

-08

May

-08

Jul-0

8

Sep

-08

Nov

-08

Jan-

09

Mar

-09

May

-09

Jul-0

9

Sep

-09

# o

f S

ub

mis

sio

ns

Job Methods Benefits

Objective: Engage people in identifying, developing and implementing their ideas for workplace improvement

Value-added per Employee

$45,000

$50,000

$55,000

$60,000

$65,000

$70,000

Oct

-04

Jan-

05

Apr

-05

Jul-0

5

Oct

-05

Jan-

06

Apr

-06

Jul-0

6

Oct

-06

Jan-

07

Apr

-07

Jul-0

7

Oct

-07

Jan-

08

Apr

-08

Jul-0

8

Bottom Line Results

TWI-related Activities at Donnelly

• Mistake-proofing*

• Job Safety

• Troubleshooting Using Process Monitoring*

• Changeover Improvements -- JR, JI and JM working together*

• Practical problem solving (A3)

* Developed in-house

So let’s go find a problem!

Sherlock Holmes (Sidney Paget, 1904)

Total Cost of Quality Performance(For Calendar Years)

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

External Internal Total

% of Sales ISO TWILean

Standardfor externalcost of quality

External Cost of Quality• Reality check: “Good is the enemy of Great”

– Large OEMs demand low (zero) PPM defect rates– “One size fits all” supplier measurement: Defective PPM– Ever-increasing quality expectations:

• What was a good part in the past is often rejectable today

• Characteristics of Donnelly’s External Cost of Quality– 70% of External Cost of Quality is in each quarter’s top ten

rejects– Few are repeat rejects: Over 85% are first-time issues– No trends in terms of shift, production area, customer,

material, machine, method– Key categories: part/mold/material design issues, increasing

customer expectations, and simple human mistakes

0

100

200

300

400

500

600

700

800

900

Parts per month

Jan

Feb

Mar

Ap

r

May

Jun

Jul

Au

g

Sep Oct

No

v

Dec

0

100

200

300

400

500

600

700

800

900

Parts per month

Jan

Feb

Mar

Ap

r

May

Jun

Jul

Au

g

Sep Oct

No

v

Dec

Quality Performance (one part #)

One mistake on one box =March PPM of 1,341vs.Customer expectation = 500

Good partsRejects

Types of Mistakes• Family mold box labeling in production

• Switched labels in shipping – similar part numbers

• Forgot to clip post that looked like a normal part feature

• Core change done wrong

• Piece broke off in mold

• Measured wrong dimension for SPC

• Coolant inadvertantly turned off

• Missing inserts / assembly parts

• Inserts /assembly parts oriented incorrectly

Human performance issuesWhy existing tools are not enough

Motorola findings:

...it became evident early in the project that

achieving a Cp greater than 2 would go only part

of the way. Mistake-proofing the design would

also be required ... Mistake-proofing the design is

an essential factor in achieving the [total number

of defects per unit] goal.Smith, B. IEEE Spectrum 30(9) 43-47

High process capability: necessary but not sufficientHigh process capability: necessary but not sufficient

Achieving Great Quality Performance

• Ensure dimensional capability – PPAP

• Identify and reduce risk of part failure – FMEA

• Mistake-proof the design: still isn’t enough

• Error-proofing your processes is also required

• This requires everyone’s involvement: legacy parts

Why a Mistake-proofing Workshop

• Concluded the only path to near-zero defects is through a plant-wide mistake-proofing process

• Cross-functional

• Proven TWI structure and philosophy– Demonstration and examples– Immediate application– Learn by doing– Learn from each other

• Focus on mindset (overcome myths)

• Easy to follow up

Job Quality Formula

JQ = (ZQC + TWI)

x ATTITUDEx ATTITUDE22

Mistake-proofing Workshop Highlights

• Lisa Story

• De-bunking Myths about Mistake-Proofing

• Making a Mistake Exercise

• Scientific Research – Why People Make Mistakes

• Filling in the Blank – Human Visual Inspection Exercise

• Examples, Examples, Examples

• Mistake-proofing Process Exercise

• Analogy

Mistake-proofing: Not a Substitute

Don’t substitute mistake-proofing for:

• Personal accountability (and related supervisory actions) (JR)

• Effective training (JI)

• Good organization and cleanliness (5S)

• Standard work and simplified processes (JM)

• Strong quality system

Mistake-proofing & Core Values

– Do your best• Eliminate barriers like mistakes so we can take pride in

what we do– Treat others the way you want to be treated

• With respect for the human condition– Don’t be afraid to ask for help

• Identify mistakes and work with others to discover the root cause

– Always work as a team• Mistake-proofing builds teamwork

Structured Approach to Mistake-proofing

1) What went wrong – what mistake was made?– Is it an honest mistake (Job Relations)?

2) Identify the root cause(s)– Has the job been streamlined using Job Methods?– Was Job Instruction used to train effectively?– Use 3-legged 5-why

3) Develop the best solution– Consider cost versus risk– Is the right way the easy way?

4) Apply the solution

Is the risk resolved?

Results• Mindset changes occurring

– “Just try harder” giving way to more permanent fixes– Less finger pointing, more working together and celebrating

successes

• Substantially reduced rejects due to mistakes

• Cut PPM defect rate by more than half ... so far

• With one major OEM customer, went from being “on probation” to being a top supplier

• Also achieved significant benefits in reducing equipment damage and safety incidents

Total Cost of Quality Performance(For Calendar Years)

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

External Internal Total

% of Sales ISO TWILean

Standard

* YTD through March

What it’s really all about...

• Believing in something bigger than ourselves

• Believing in the company and its leadership; believing in its values, vision and mission, and our products and services

• Eliminating motivational inhibitors – like making mistakes

True Compensation