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The Great Cookie Crisis – 2006 Utilizing the Tools of Quality in PIM Performance Improvement

Brian Koenig CPIM

The Elmore Institute LLC

Doug Brandt CPIM, CIRM

Armstrong Air Conditioning

Engaged in Improvement???

“How many agree that the vast majority

of the workforce in your organization

possess far more talent, intelligence,

capability and creativity than their

present jobs require or even allow?”

Stephen Covey

The 8th Habit – From Effectiveness to Greatness

The Great Cookie Crisis

• Problem Solving Methodology Process Control – Predictability & Stability Scientific Method – Hoshin Planning / Policy Deployment

• Tools of Quality Which tool, when, how and why? Long Term – Process Improvement Medium Term - Problem Solving Short term - Daily Manufacturing Process Control

• Ottawa Baking Toledo - 400,000 per week Atlanta - 250,000 per week

Cookie Defects

What issues hinder our success??

Corrective Action & Help!!!

Continuous Improvement

from optimizing

Effectiveness and Efficiencies?

5 Step – Methodology

1. Define current process / problem.

2. Define future process / goal.

3. Analysis of data and alternate solutions.

4. Selection and implementation of solutions.

5. Verification of results / future condition.

• Kaoru Ishikawa

• Tools Support the processes How and when Methods = Results Simple = Effective

• Lean / ISO objectives Employee Involvement Continuous Improvement

Basic Tools

1. Gantt Chart

2. Tally Sheets

3. Run Chart

Scatter Diagram5-Why’sControl Charts

4. Pareto Analysis

5. Flow Charts

6. Fishbone Analysis

Corrective Action Matrix

Failure Mode & Effects (FMEA)

Poka-Yokes

The MeetingApril ‘05

• Veronica’s office – Rainy Tuesday morning

• Quality Issues

Lost 3 of 10 largest customers in since last fall. (quality?) Quality Mgr and Maintenance Supt – New ovens $1/2 mil. 11 of 36 cookies with “not enough” chips at party.

It’s up to us to solve the “problem”!

1. Initial Activities

• Member Selection

• Problem Definition

• Objectives

• Project Timeline

Assembling the Team

• Core Members

• Support Members

• Initiator Problem definition Goal Closure

Beware!

What is the Problem with Inventory???

1. Reduce average total number of cookies the inventory is off. (Average week +/- 20,000 of 1,000,000 in stock)

2. Reduce average number of items off by

+/- 1,000. (Average week 8 types out of 100 types)

3. Increase number of cookie types that are 100% accurate. (Average week 82%)

* * Examples * *

of different Definitions

ObjectiveOttawa Baking

• Our objective is to reduce the number of defective cookies based off scrap, audits and customer credits / complaints for the Toledo and Atlanta facilities.

• Developed by core members during 2nd meeting. Goal to be developed after base data collected.

Is this too Broad? - Veronica’s mandate

Gantt ChartNice Recruiting Tool !!!

Cookie Defect Reduction

Apr May Jun Jul Aug Sept Oct

A Select Members X X X X X X X

B Current Condition X X X X X X X X X X X X

C Select Goal X X X X X X

D Root Cause X X X X X X X X X X X X X X X X X

E Corrective Action X X X X X X X X X X X X X X X X X X X X X X X X X X X X X

F Standardize X X X X X X X X X X X X X X X X X X X X X X X X X X X X X

G Revised Condition X X X X X X X X X X X X X X X X X X X

• Communications and buy-in

• Project Management

• Methods, documentation & records Up to individual organizations What? Who? How? Results?

• Training & Competencies

2. Current Condition

• Data Collection – What do we collect? Data aligned with future problem / solution needs? User friendly and understood? How much do you need to collect? Sorting, ranking, presenting?

• Tools Tally Sheet – Initial collection Run Chart – Defects by Quantity Pareto Chart – Defects by Type Flow Chart – Sequence of activities

Tally Sheet User Friendly!!!

Defects – ‘000

Defect Wk 1 Wk 2 Wk 3 Wk 4

1. Burned IIIII IIII

2. Broken IIII II

3. Packaging II I

4. Size I I

5. Stuck II

6. Chips I

Total 15 8

Run Chart Ottawa Baking

Defects Per Week

WeeklyDefects( '000 )

35

30

2425 O

2020 O 18 Avg Defects

O 17,000 per Week

15O O

10 14 O 1412

5

0

1 2 3 4 5 6

Week

“Secondary Sorts”Stratification – Six Sigma

Breaking data apart into different categories to assist future analysis. Could be by: shift, plant, department, cookie type, etc.

Total 20 14 24 18 12 14 Total

Shift - 1 9 7 10 8 5 8 47

Shift – 2 5 4 8 5 4 2 28

Shift – 3 6 3 6 3 3 4 25

Pareto Chart Rule of 80/20

Defects by Type

Ottawa Baking

Defects ' 000

8065

60

4040

25

2010

5 5

0

Burned Broken Pkg Size Stuck Chips

Flow ChartCurrent

Ottawa BakingProcess Flow

Receiving Mixing Baking Packaging Shipping

Inventory Inventory Inventory Inventory

3. Future Process / GoalWhere are we going?

“SMART” Goals

• S pecific

• M easurable

• A ggressive

• R ealistic

• T ime bound

Goals impact the activities and resources allocated to the project.

Ottawa BakingProject Goal

Reduce the 6-Week moving average of Defective Cookies by 30% in 180 days.

12,000 or less per week - Toledo

7,000 or less per week - Atlanta

4. Root Cause Analysis

• Identify lowest level of cause

• 5M’s + E / Fishbone / 5 Why’s Scatter Diagram / ANOVA A single “problem” can have multiple Issues / Root

Causes attached to it.

5M’s + ESources of Variation

1. M an Left in oven too long

2. M aterial Dry dough

3. M achines Hot spots in ovens

4. M ethods Tray versus belt

5. M easurement Inconsistent scale

E nvironment Ambient humidity

Fishbone

BurnedCookies

Environment

Measurements

Methods

Material

Machines

Man

Defective Cookies

Start counting last pack of

M&M’s.

5 – Why’sPossible multiple analysis

1. Why burned cookies?Hot spots

2. Why hot spots? Thermocouple calibration

3. Why calibration? Not on PM checklist

4. Why not on checklist? Issues with updating

5. Why not updated? Staffing shortages / Priorities

** Possible to have multiple 5-Why analysis within a project.

5. Corrective Action Plan

• Designing and executing the “Action” Plan Multiple activities per project – Coordinate Tools - DOE / FMEA / APQP / Poka Yokes / Standardize

• Best way to organize Who’s available / interested Vertical vs. Horizontal ex. Training (all groups

responsible for their own or one groups trains all?)

• Corrective Action Matrix Issue, C/A, Leader, Target Date, Results

Corrective Action Matrix

Issue Activity Leader Date Status

1. Dough Review Eng 7-31 Closed Temp

2. Oven Calibration & DB/BK 9/30 Closed Temps Location Maint

3. Tray Verify and DB/BK 9/30 Closed

Type Standardize

4. Set-up Baking and DB/BK 9/30 Open Packaging Maint

6. Sustaining the Gains

• Standardization and Work Guidance

• Future Monitoring and Verification What, Who, When, “How” SPC – Control Charts Departmental audits

Standards (Specs - What)

Clear image of desired conditions

Make abnormalities obvious

Simple and Visual

Work Guidance (How)

Robust - wide

Dynamic - changing

Input from users

Standards & Guidance

      Manning: 1 operator - 17.5 minutes Takt Time:Station: 1

Location: MIXING STATION W.S. PPE:Rev. Date: 4/25/2002Rev. Level: 1

PPE: SAFETY GLASSES/ RUBBER GLOVES/ BOOTIES/HAIR NETModel: Candy Coated Chocolate Chip

Task Description MCT Fixt./ Gage VRA Tools Mach.1. MEASURE MEASURE 40 LBS. OF FLOUR PUT IN 40# SIZED VAT AND DUMP INTO MIXER 2.8 MIN 40 LB FLOUR VAT MIXER

2. MEASURE MEASURE 6.4 GALLONS OF WHOLE MILK IN 4.4 GALLON CONTAINER AND POUR INTO MIXER 2.4 MIN6.4 GALLON CONTAINER

MIXER

3. MEASURE MEASURE 5.3 GALLONS OF PREPARED EGGS POUR INTO MIXER 1.2 MIN5.3 GALLON CONTAINER

MIXER

4. MEASURE MEASURE 1.7 LBS OF SALT AND POUR INTO CONTAINER .8 MIN1.7 LB SALT CONTAINER

MIXER

5. MEASURE 3.2 LBS OF BAKING SODA AND POUR INTO MIXER 1.1 MIN3.2 LB BAKING

SODA CONTAINERMIXER

6. MEASURE 7.8 LBS OF BAKING POWDER AND POUR INTO MIXER 1.3 MIN7.8 LB BAKING

POWDERMIXER

7. MEASURE MEASURE 11.6 LBS. OF SUGAR POUR INTO MIXER 1.8 MIN11.6 LB SUGAR

CONTAINERMIXER

8. MEASURE MEASURE 2.3 GALLONS OF VANILLA AND POUR INTO MIXER 1.3 MIN2.3 GALLON CONTAINER

MIXER

9. MIX START MIXER AT 54 STROKES PER MINUTE 11 MINMIXER SPEED CONTROL AND

TIMERMIXER

10. MEASUREAFTER MIXER HAS RUN FOR 11 MINUTES, MEASURE 12 LBS. OF CANDY COATED CHOCOLATES AND POUR

INTO MIXER1.8 MIN

12 LB CANDY COATED

CHOCOLATE CONTAINER

MIXER

11. MIXINCREASE MIXING SPEED TO 83 STROKES PER MINUTE AFTER ALL INGREDIENTS HAVE BEEN ADDED. RUN

MIXER AT THIS RATE FOR 6 MINUTES6 MIN

MIXER SPEED CONTROL AND

TIMERMIXER

12. MIX SEND MIXING VAT TO BAKING 8 MIN VAT

39.5 minutes

HAIR NET, ALL CLOTHING COVERS, SAFETY GLASSES, RUBBERGLOVES

Items StandardizedBurned Cookies

1. Tray types used by cookies

2. PM on thermocouples

3. Reference scales for cookie inspection

4. Competencies and training in baking and packaging

5. Min/ Max dough temps, prior to baking.

6. Operator, Supervisor and Quality inspection methods and responsibilities.

7. Revised ConditionAre we there yet?

Ottawa BakingDefects Per Week

WeeklyDefects( '000 )

28

24

20 1715 O

16 O 14 13 GoalO O 12,000 per Week

12O

8 10 O

84

0

Week 21 22 23 24 25 26

6 Week 15 14 15 13 12 11Average

8. Review and Record Keeping

• Evaluation of activities, findings, methods, tools and results.

• Story of the Team - summary Each organization, own requirements

Team Review

• Problem Description

• Goal

• Team & Input

• Current Process

• Current Condition

• Root Cause Analysis

• Counter Measures

• Future Condition

• Standardization

• Verification

• Documentation

• Results

Story of the Team

Reactive ???

Or

Proactive???

Hoshin PlanningAttaining Strategic Objectives

3 -Tier Policy Deployment – PDCA Cycles

1. Top Management2. Middle Management3. Departmental

Quality Hoshin Safety Hoshin Productivity Hoshin TPM Hoshin Sales Hoshin

Management can/should walk into the departments to verify how well departmental activities are aligned with and meeting higher level Hoshins.

Internal Objectives – Ottawa Baking

1. Employee Involvement

2. Visual Tools

3. Continuous Improvement

Internal Tools – Ottawa Baking

1. Daily / Weekly Meetings

2. Department Scoreboard!!!

Departmental Scoreboard

• Know the objective

• Assess the situation

• Adjust and attack

Departmental Scoreboard

Ottawa Baking

Quality Productivity Inventory Customer

A1 Defects Schedule Attainment On-Hand On-Time

Run Chart Run Chart Run Chart Run Chart 

A2 Defects Downtime Accuracy Complaints

Pareto Pareto Pareto Pareto  

A3 Root Cause Root Cause Root Cause Root Cause Analysis Analysis Analysis Analysis  

A4 Action Log Action Log Action Log Action Log---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 

B1 Accidents & Efficiency Run Chart 5S Audit

Safety Audit Run Chart

B2 Safety Efficiency 5S Action Log

  Action Log Action Log

Summary

• Tools identified and sequenced to help Ottawa Baking improve performance.

• Departmental “scoreboard” to improve day-to-day operations.

Thanks!!!

Hope you enjoyed the presentation...

Brian

Appendix

• Scatter Diagram

• Control Charts

• FMEA

• Additional Reading

Scatter Diagram

Temp vs Darkness

10 x x

DA 8 x x

RK 6 x x

NE 4 x x x

SS 2 x

0

325 F 350 F 425 F

Control Chart

• Processing Capabilities Control Limits Voice of Process Customer Specs Voice of Customer

• Common Cause vs. Special Cause Variation Reducing Common Cause Variation =

Continuous Improvement

• Accuracy vs Precision

Cookie WeightGrams

112

2%108

14%104

34%100

34%C

96

CB C C 14%

92

B B C 2%

88

A

FMEA

• Failure Mode & Effects

• Severity

• Occurrence

• Detection

• RPN Number (SxOxD)

Additional Sources

Lean Production Simplified

Pascal DennisStandards, Job Element Sheets, Hoshin Planning

Productivity Press

Understanding Statistical Process Control

Donald J. Wheeler / David S. ChamberlainControl Charts & Interpretation

SPC Press

Special Thanks

• AIC – Rita, Kathy, Sue, Margaret & Mike

• EMU – Dr Tucker, Veronica, Jim & Brian

• Owens CC – Students from QCT 110 / 231

We hope you enjoyed!

Brian Koenig CPIMeibk @ aol.com

Doug Brandt CPIM / CIRM Doug.Brandt @ aac-inc.com

Session #: E – 09 Title: The Great Cookie Crisis

Please return your completed session survey to the room monitor or the collection boxes near the exit

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