cat logistics presentation 161111
Post on 17-Jul-2016
27 Views
Preview:
DESCRIPTION
TRANSCRIPT
Caterpillar Production System (CPS) deployment at Caterpillar LogisticsMiguel Mazarias, General Manager, Caterpillar Logistics
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 2
It is always possible to improve !
VIDEO
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 3
Committed to Customer Success
How to continuously improve,
globally,
involving all units of a large organization ?
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 4
Committed to Customer Success
• Company introduction
• Caterpillar Production System (CPS)– Link with Caterpillar Strategy– What is it about ?
• Results
• Success factors for deployment
• Future of CPS
Agenda
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 5
450 000
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 6
Excellence in Aftermarket not only to Caterpillar…
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 7
Committed to Customer Success
Caterpillar Production System: kick off 2006
– IBM– Panasonic– Audi– Kohler– Anheuser Busch– International Paper
• How are other companies addressing the same types of questions?
– Toyota– Denso– GM– Ford– Emerson– Pella– Deere
• Are we working on the most important work?
• Are we solving problems fast enough?
• Is involvement and engagement inclusive?
• Are we process-focused? Are we functionally organized? Is every employee focused on the customer?
• Have we fundamentally changed the way we work, the way we behave and the way we lead?
Questions:
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 8
Committed to Customer Success
Caterpillar Production System: what is it about ?
The Caterpillar Production System is the common Order-to-Delivery
process being implemented enterprise-wide to achieve our People, Quality,
Velocity and Cost goals for 2010-2020.
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 9
KPI process
Committed to Customer Success
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 10
Committed to Customer Success
6 Sigma Foundation (Started at Caterpillar in 2000)
CPS is built on a strong 6 Sigma foundation.
CPS uses 6 Sigma:
Methodology (DMAIC, DMEDI and Process Management) supplemented with lean toolsPractitioners (DCs, Master Black Belts, Black Belts, and Green Belts) with additional CPS trainingFull time job roles in defined salary grades (Black Belts, Master Black Belts, DC)Strategy integration process to align, prioritize, and select CPS projectsFinancial Principles to quantify CPS project benefitsGlobal deployment with clarity, consistency, and commitment
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 11
Committed to Customer Success
Caterpillar Production System (CPS)
Eliminate waste !(non value adding activities)
Lost opportunities due to poor safety and an underutilized workforce
Production or rework of out-of-specification parts
Excess raw material, work-in-process or finished goods
Excess supply beyond the requirements of the next process
Lost time due to poor product flow — shortages, bottlenecks, down machines
Wasted movement made while working
Excess movement of work-in-process
Work that adds no value to the customer or business
Unused Creativity / Capability Defects Inventory
Over Production
WaitingExcess Motion Transportation
Over Processing
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 12
Committed to Customer Success
Caterpillar Production System (CPS)
3 subsystems & 15 guiding principles:
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 13
Management System
Are we using the same metrics with the same definitions?
Are we aligning the Targets?
Are we driving accountability?
Are we hiding problems?
Are we implementing employee ideas?
Are we Planning, Acting, Doing and Checking?
Provide the structure to enable
and sustain Operational and Cultural change
“If you can not measure it, you can not improve it,nor manage it”
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 14
We measure same criteria everywhere.
QUALITYPEOPLE VELOCITY COST
• Shipped Within Standard • % of Receipts Posted in
Standard
• Facility Errors (Internal & External Claims)
• Bin Denials• Storage Location Accuracy• CPS Assessment Score
• RIF• Ideas per Employee• % Ideas Closed Within 30
Days • EOS Engagement
Outbound• Shipped Within Standard Inbound• % of Receipts Posted in
Standard
Outbound• Area Errors • Standard Work ConformanceInbound• Storage Location Accuracy• Standard Work Conformance
Outbound & Inbound • Days of Injury-Free Work• Ideas per Employee • % Ideas Closed Within 30
Days• 5S Score
Division (PQVC Executive Scorecard)
Facility Level (Service Parts)
Area Level(Service Parts)Inbound & Outbound
• Variable Margin (% of Plan)
• 6 Sigma Value Prop• OPACC (% of Plan)• ORONA (% of Plan)
• RIF• Ideas per Employee• % Ideas Closed Within 30
Days• Facility 5S Score
• Shipped Within Standard • % of Receipts Posted in
Standard
• Facility Errors (Internal & External Claims)
• Bin Denials• Storage Location Accuracy• Standard Work
Conformance• Inventory Record Accuracy
• Inbound LPH • Outbound LPH• Global LHP
Management System / Tools - Processes
Metrics
Casdade
Outbound• Oubound LPHInbound• Inbound LPH
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 15
Committed to Customer Success
Global reporting tool
28 PQVC metrics by:• Client• Facility• General Manager• Network• Region• Division
Management System / Tools - Processes
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 16
Committed to Customer Success
CPS BoardsPQVC Boards (Facility & Area)
Management System / Tools - ProcessesContinuous Improvement Board
FEEDBACK
Process Improvement Dialogues
Process Improvement Dialogues
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 17
PLAN
PLAN what we are going to do. In this step we assess where we are, where we need to be, why this is important, and plan how to close the gap.
DO
DO: Implement the plan and measure its performance
CHECK
CHECK: Assess the measurements and report the results
ACT
ACT: If you have not accomplished your objective, go through the cycle again, starting with the Plan step.
Management System / Tools - ProcessesPQVC Boards (Facility & Area)
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 18
•Logistics Center
Manager
•General Manager
•Operators
•Org
aniza
tiona
l Lev
el
•Frequency
•Supervisor/•Team Leader
Set Standard Dialogue Meetings•Process Improvement Dialogue - RCCA
•Weekly
•Weekly Team Meeting
•Monthly
•PQVC Facility Board
•Monthly•Daily
•Area Metric Board
•Shift kick- off meeting
•Monthly Team
Meeting
•Weekly Management Team Meeting
By Phone: PQVC Reporting Tool
Facility Monthly Performance
Review
Facility Portfolio Monthly
Performance Review
•VP
Management System / Tools - Processes
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 19
The Key to SustainabilitySystem Management System Metrics
Process Improvement Dialogue= +
Performance tracking systemRelevant cell or asset metricsClear targetsHour by hour chartingVisual Boards
Managers need to drive corrective actions Giving feedback as a “demanding partner”Use of data as a lens (not a weapon) to focus root-cause problem solvingEnsuring accountability for results“Day-In-The-Life”
CATERPILLAR PRODUCTION SYSTEM DIVISION
7
IT’S OUR TURN…
Caterpillar: Confidential Green
QUALITYPEOPLE VELOCITY
People
COST
Profitable Growth
• Committed Ship Date Performance
• Cat Inventory Turns• % Pull• Point of Use Material
Availability• Market Leading Product
Availability• VELOCITY Choice 1
• DRF1 -or- VEHR -or- PPM • 1st Pass Yield -or- Scrap• Rework -or- DPM • Certification• Standard Work• Inventory Accuracy• Bill of Material Accuracy• Routing Accuracy• QUALITY Choice 1 / 2
• Days without Lost Time• RIF and LTCFR• Ideas per Employee and
Implementation Rate• Certified CPS MBB, BB, GB,
and YB• PEOPLE Choice 1 / 2
• Supply Chain Value Proposition
• Hours per Machine -or-Expenses per Hours Worked -or- Expenses per Machine Hours
• COST Choice 1 / 2 / 3 / 4
• DRF1 -or- VEHR -or- PPM• 1st Pass Yield -or- Scrap
and Rework• Rework % -or- Rework
Expense• QUALITY Choice 1 / 2 / 3
• Days without Lost Time• Ideas per Employee and
Implementation Rate• Skills and Capability Matrix• PEOPLE Choice 1 / 2 / 3
• Shipping Performance -or-Master Production Schedule
• Total Cycle Time• % Pull• Takt Time / Cycle Bar Chart• % of Cells at Takt without
Overtime• VELOCITY Choice 1• Point of Use Material
Availability• Shipping Performance
• 1st Pass Yield • CPK -or- DPM
• Days without Lost Time• Ideas per Employee and
Implementation Rate
• OEE and Trend• Hours / Machine -or- Expenses
/ Hrs Worked -or- Expenses / Machine Hrs
Performance in Product and Process
Facility / Business Unit Level
ValueStream Level
Area / Section Level
Metrics CascadeCascaded metrics are
aligned to strategy
• OEE at Constraint• Hours per Machine -or-
Expenses per Hours Worked -or- Expenses per Machine Hours
• COST Choice 1 / 2 / 3 / 4
Cell Level • Hour By Hour Chart• Open area for operators to chart real time data associated with People, Quality,Velocity, or Cost
Management System / Tools - Processes
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 20
Committed to Customer Success
CPS BoardsManagement System / Tools - Processes
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 21
Committed to Customer Success
Continuous Improvement in Action• Engage minds throughout the team
• Utilize ideas from those closest to the work
• Feedback loop is critical
People metric: • Number of ideas per employee per year• Number of ideas closed within 30 days
Team Leader
VP
Manager
Supervisor
Operator
Supportive
Management System / Tools - Processes
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 22
Committed to Customer Success
CPS AssessmentMeasure CPS implementation and progress
(via a scoring on the assessment questions)
CPS Assessment for Manufacturing contains 110 statementsCPS Assessment for Service Parts contains 62 statementsStatements are aligned with the CPS 15 Guiding Principles
Simplify and integrate multiple certifications internally used at Caterpillar
Management System / Tools - Processes
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 23
Are we chasing Waste?
Are we using 6Sigma to drive improvements?
Do we understand our Value Stream?
Do we continuously try to reduce lead times to reduce inventory levels?
Do we have the parts in their optimal location?
Do we follow Standard Work?
Is our Manpower Planning effective?
Operating System / Tools - Processes
The Operating System eliminates waste
using 6 Sigma and lean tools
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 24
Committed to Customer Success
Executive Summary Report (ESR)Report-out
RIW Methodology Core training (if not completed in Prework)Determine Current Standard WorkCPS Tools & Techniques (Spaghetti Mapping, 5S, Hour-by-Hour Charting)
PreworkFour weeks prior
to the RIW
Project Specific TrainingMeasure & Analyze Current Work Process (Current State)Formulate Process Improvements (Future State)
Refine Future StateSimulate Future StateHands-on Shop-Floor ImprovementsEvaluate, Verify, and Refine New Current StateFinalize New Standard ProcessEstablish New Standard WorkImplement 5 Safety and 5 Quality Improvement ideas
Rapid Improvement Workshop Follow-UpFour weeks
after the RIWQuantitative safety risk assessment (FMEA)Determine scope and enter charter into eTrackerIdentify sponsorSelect teamPre-workshop communicationComplete RIW Prework ChecklistRIW Core Training (if practical)Quality/CAV data collection
Day 1
Day 2
Day 3
Day 4
Day 5
DM
MA
AI
IC
CDM
Finalize ESR and forward to DCComplete RIW Newspaper itemsLessons learnedPost-workshop communicationAttach ESR to charter in eTrackerTransition project in eTracker
C
Operating System / Tools - Processes
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 25
Drive Standard Work -- Standardize tasks and utilize common processes as the foundation for Continuous Improvement
Operating System / Tools - ProcessesStandard Work / Standard Work Audits
Standard WorkAudits
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 26
Cultural System
Are we being proactive in Safety?
Do we use Customer Feedback for improvement?
Do Leaders visit the workplace?
Do employees stop and act when they find a problem?
Do people take accountability?
Do we develop our people?
The Cultural System makes change possible and
improves the way we work
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 27
CPS Skill Training Matrix
Cultural System / Tools - Processes
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 28
Cultural System / Tools - Processes
Exception Cards / Stop To FixException cards recorded in the CPS Tracker, results are analyzed in a timely manner and RCCAs generated based on the results.
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 29
Committed to Customer Success
Some results
7% points improvement in Engagement index
Safety metrics improved 37%
Errors per 10.000 order lines improved 38%
Productivity improved 18%
Financial returns improved 8%
Cat Logistics worldwide PQVC scorecard results (2010 vs 2007):
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 30
Committed to Customer Success
Key Lessons Learned from the CPS deployment
Committed to Customer Success
Don’t DoLet each individual
facility/factory roll out CPS on their own
Global roll out with top level engagement
Copy and paste manufacturing program to other business units
Let it be a stand alone program
Replicate and use existing program, but adapt it to your own business needs
Link it to the Corporate Strategy and the strategy of your business (unit)
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 31
Committed to Customer Success
Key Lessons Learned from the CPS deployment
Committed to Customer Success
Don’t DoTry to tackle everything at once Know what your roadmap to success
looks like Neglect feedback from the line
organization
Underestimate communication and change management efforts
Prepare forever
Adapt the program whenever it makes sense
Have a SMALL support team (regional) and be prepared for the roll out
Know there is an amount that needs to be learned by doing
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 32
Committed to Customer Success
Key Lessons Learned from the CPS deployment
Committed to Customer Success
Don’t DoLet the support team alone
be accountable for the CPS roll out
Let the support team and the line organisation be accountable for the roll out
Let each facility/factory control metrics definition and calculation
Forget that positive stories have a snowball effect
Centralize metrics definition and calculation and use metrics to drive accountability
Celebrate success
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 33
Future …Continue our roadmap - Sustain our success - Improve CPS further
CPS: The Transformation Journey
© 2010 Caterpillar Logistics Services, Inc.Caterpillar Confidential 34
Miguel Mazarias
General Manager
Caterpillar Logistics Services, Inc
Supply Chain Solutions - EAME Region
Questions ?
top related