process improvement from a materials perspective

Waste Management and Research Center

ManufacturingExtensionPartnership

Process Improvement from a Process Improvement from a Materials PerspectiveMaterials Perspective

Solutions looking for problems or

Problems looking for solutions?




Materials utilization How can processes be improved

– Eliminating/Replacing materials Replacing Solvent with Aqueous Cleaners

– Reusing materials The Army has recently authorized the use of re-refined used

motor oil for use in ground equipment

– Recycling materials, and paper waste

– Consolidating/eliminating process steps.



Expanding the RelationshipExpanding the Relationship Gather information

– Industrial or Manufacturing Directory SIC code Sales Size

– Dun & Bradstreet Company history Personnel profiles Financial report



Expanding the RelationshipExpanding the Relationship

Made several visits to the facility– Observed what they do

– Met the Facility Manager and supervisors

Implemented Several Pollution Prevention Projects– Replaced Solvents with Aqueous Cleaners

– Introduced Membrane Filtration on Aqueous Cleaners

– Implemented Rag Recycling to Reduce the Volume of Solid Waste



Expanding the RelationshipExpanding the Relationship

Trusted Useful Cost effective, and Credible.



Follow Up CallFollow Up Call

Bumpers-R-Us Corporation– Mr. Sid E. Ways

Process line manager

This scenario is an example only and is not used to imply

that any member of NIST, IMEC, or any other organization

affiliated with NIST is not fully capable in the performance

of their duties.



Good Job!Good Job! Solved another problem

– Increased client satisfaction,– Gained more trust and influence,– One more bean to count, and– Big project is on the horizon!!



3 months later Pitch the “Big project”

– Programmable Logic Control (PLC)

Follow-UpFollow-Up



Solutions Looking for Solutions Looking for ProblemsProblems

“If the shoe doesn’t fit -

– there’s something wrong with your foot” Promoting inappropriate changes

– Don’t see the whole picture Don’t understand the problem Don’t understand the solution

Solving the problem at the source.



Project Opportunity Project Opportunity AssessmentAssessment

Set up a meeting– Reviewed the problem,– Mapped the process,– Found the root cause of the problem, and– Brainstormed a solution as a team.



Coming UpComing Up How to develop a problem statement, How to map a production process, How to identify loss reduction opportunities, How to use a material loss assessment, and How to present your information.



Next UpNext Up

Process Mapping and Root Cause Analysis



A B

““When the map is When the map is complete…..the route complete…..the route

becomes clear”becomes clear”Ancient Chinese Proverb



Process Analysis TechniquesProcess Analysis Techniques

Problem Definition Process Mapping Root Cause Analysis Site Assessments Identifying Loss Reduction Opportunities



Problem DefinitionProblem Definition

Involves defining the…– What?– When? – Where?– Significance



Problem Definition Step 1:Problem Definition Step 1:What?What?

What opportunity will you address?– What issue keeps facility manager awake at night?

What is their pain? What is their passion?

Key tools…– TOP 10 Self-Assessment– Opportunity Prioritization Matrix– Interviews/Surveys– Scrap/reject reports– Functional Assessments



Problem Definition Step 2:Problem Definition Step 2:When?When?

When did the problem appear? Try to pinpoint precise dates/times Did problem coincide with something

recently implemented?



Problem Definition Step 3:Problem Definition Step 3:Where?Where?

Narrow the boundaries! Did problem occur on …

– One shift?– One activity?– One supplier?– One material?– One machine?



Historical vs. Newly-Emerged Historical vs. Newly-Emerged ProblemsProblems

0

1

2

3

4

5

6

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Week Number

Rej

ect

Rat

e (

%)

Historical Reject Level Anomaly

Question: Where is the opportunity!?



Problem Definition Step 4:Problem Definition Step 4:Significance!Significance!

Measure the impact of the problem Is it important to the company? Is it defined in terms of the company’s

decision maker can understand? Will the elimination of the problem improve

the company’s bottom line?



Problem Definition SummaryProblem Definition Summary

Combine the…– What?– When?– Where?– Significance

Develop a problem statement or effect



Initial Problem StatementInitial Problem Statement

NOTE: This is the problem as they PERCEIVE it

May only be a symptom of the actual root cause

Provides insight regarding parameters to monitor in process mapping



Process MappingProcess Mapping

Why should we map a process?– Improve process knowledge and understanding– Identify and correct problem areas– Identify loss reduction opportunities– Determine usage and fate of raw materials and

other resources



Three Questions Used in Three Questions Used in Process MappingProcess Mapping

What happens next? What are the inputs? What are the outputs?



Complicating FactorsComplicating Factors

General vs. Detailed Processes Ancillary Processes Intermittent Processes Process Upsets Looping Processes Splitting Processes



Military Root Cause AnalysisMilitary Root Cause Analysis

Vehicle Maintenance Repair of Vehicle Sent from Organizational

Shop Stated Problem (according to

Environmental Manager):– “Too Much Oily Wastewater is Being

Generated”



General Process MapGeneral Process Map

Organizational Shop

Transportation to Higher Level Shop

Higher Level Shop

Organizational Shop

Vehicle Vehicle Repair Repair ProcessProcess

Repair Verified

Vehicle WashedAt Shop

Transported to Higher ShopFor Repair

Inspected at Higher Shop

Vehicle Washed toIdentify Source

of Problem

Parts Ordered

Repair is Made

Road Tested

Vehicle Washed to Check for Leaks

Vehicle Released to Organizational

Unit

Vehicle TransportedBack to Unit

Repair Need Identifiedby Operator



Process loss problem exampleProcess loss problem example

Bumper manufacturer Stamping and electroplating operations Stated Problem (according to plant

manager):– “Electroplating operations can’t keep up with

stamping operations”



General Process MapGeneral Process Map

Receiving Stamping

Powder Coating

Electroplating

Shipping

50,000 units/yr

20,000 units/yr

30,000 units/yr

50,000 units/yr

Electroplating Electroplating ProcessProcess(Time Study)(Time Study) Spray Clean RinseT2 170 sec.

Soak Cleaner(Plans for prewash after

stamping)T1 380 sec.

Electro CleanT3 380 sec.

Counterflow RinseT5 Dip 45 sec.

Acid HCL DipT6 35 sec.

RinseT7 Dip 10 sec.

Electro CleanT10 145 sec.

Counterflow RinseT12 Dip 10 sec.

Acid HCL DipT13 40 sec.

Counterflow rinseT14 35 sec.

Rinse ShuttleT16 170 sec.

Electroplating Electroplating ProcessProcess(Time Study)(Time Study)

Pre-dipT25 130 sec.

Deco CrT26 180 sec.

Tri Ni NickelT20 120 sec.

Brite NiT21 490 sec.

Dura Ni (Strike)T22 170 sec.

Semi Brite Ni PlateT17 46 min.



RinseSprayT23 45 sec.

Counterflow RinsesT27abc

35 sec.35 sec.35 sec.


5 sec.5 sec.5 sec.

dwell 3 sec.

OR

OR



Root Cause AnalysisRoot Cause Analysis

Used to establish “cause-and-effect” Theory - there is a direct cause for a problem Determine the sources of problems

– Personnel

– Machine

– Method

– Material

– Management

– Environment



Personnel Oriented ProblemsPersonnel Oriented Problems

Lack of training Manpower availability Safety/Industrial hygiene Labor Relations



Machine Oriented ProblemsMachine Oriented Problems

Antiquated Equipment Wrong equipment for Application Under/over sized equipment Worn out equipment



Method Oriented ProblemsMethod Oriented Problems Productivity (cycle time) Problems Bottlenecks Downtime and tool change time Wrong SOPs Lack of measurement Poor paperwork flow Delivery problems



Management Oriented Management Oriented ProblemsProblems

Increased Costs Poor quality of Parts Customer relations Vendor relations Labor relations



Material Oriented ProblemsMaterial Oriented Problems Too many rejected parts Excessive cost increases Too much waste generation Regulatory problems Inventory Control Problems Energy Efficiency Work in Progress



Environment Oriented Environment Oriented ProblemsProblems

Government Regulations Competition Transportation Access Utility Access



Too Much Oily WastewaterIs Being Generated

Vehicles Washed Before Repair

SOP

So Mechanic Can See Source of Leak

So That The Right Parts Are Ordered

So the Vehicle Can Be Fixed Right the First Time

Vehicle is Washed After Repair

SOP

To Make Sure Repair is Complete

So the Vehicle Can Be Fixed Right the First Time

Cleaning process inadequate

Buffing compoundhard to remove

Electroplating Can’t Keep Up

Not enough capacity

Process takes too long

Too many steps

Parts don’t get clean(Buffing compound residue on parts)

Cleaning process inefficient

WWTP can’t handle it

Too much waste to treat

WWTP not big enough

Can’t run 2nd line

FishWMRC

?

Electroplating Process(Materials Study)

Counterflow RinseT12 5.4 gpm

T12a

Acid HCL DipT6 Etches surface; 10-15% HCl dumped every 1-2 weeks

Counterflow RinseT5 4.1 gpmremoves electroclean residueT5a

Electro CleanT3 3,920 gal. caustic NaOH10-12 oz/gal; 170-180° FDumped every 45 days

Spray Clean RinseT2R.O. water rinse ambient temp. 3gpm bleed

Soak Cleaner(Plans for prewash after

stamping)T1

3,140 gal10-12 oz/gal180° F, pH 1430 day dump

Counterflow RinseT14 5.4 gpm

T14a

RinseT7 6 gpm optimumruns less

Electro CleanT10 2300 gal.dumped every 60 days to T3

Acid HCL DipT131,832 gal

10-15% HCL; dumped every 2 weeks to acid dump tanks

Rinse ShuttleT16 1-3 gpm

Electroplating Process(Materials Study)

Pre-dipT25

Deco CrT26

Tri Ni NickelT20

Brite NiT21

Dura Ni (Strike)T22

Semi Brite Ni PlateT17



RinseSprayT23



dwell 3 sec.

OR

OR

High sulfurNi strike3:59 cycle; 7,250 gal.

8,700 gal; 4 bayspH = 4.0

2,100 gal, Ni bathdeposits particles (non-conductive) with Ni

3-4 sec.; 64,000 pores/in2

Not functional; will be usedto replace dragout & evap.

5-10 gpm1,300 gal each

1,832 galchromic - 202 gal. &sulfuric - minimal .01oz./gal

2,620 gal35-40 oz/gal hex Crsulfuric acid

5.4 gpm




Not enough capacity


Too many steps



Cleaning & pickling processes

cause contamination



WWTP not big enough

Cleaning & acid tanks dumped too

often


Tanks become contaminated

Dwell times over plating tanks are

too short

Not enough capacity

Too much metals

drag out



Identifying Loss Reduction Identifying Loss Reduction OpportunitiesOpportunities

Discuss/challenge sub-causes Multi-vote to prioritize problems Generate Loss Reduction Opportunities

– Brainstorm ideas– Select & implement best solution(s)– Monitor results– If problem persists, implement alternative

solutions



Loss Reduction TechniquesLoss Reduction TechniquesPersonnelPersonnel Oriented ProblemsOriented Problems

Improve employee training Improve employee participation Develop quality circles Improve safety conditions Improve employee supervision



Loss Reduction TechniquesLoss Reduction Techniques(Machine Oriented Problems)(Machine Oriented Problems)

Modify existing equipment Adopt new processes and technology Redesign/reformulate products Implement preventative/predictive

maintenance Recycling of by-products and wastes



Loss Reduction TechniquesLoss Reduction Techniques(Method Oriented Problems)(Method Oriented Problems)

Improve operating practices Improve inventory control Improve housekeeping Process optimization Standardize procedures Waste segregation Process water reduction



Loss Reduction TechniquesLoss Reduction Techniques((Material Oriented Problems)Material Oriented Problems)

Raw material modification/substitution Improved inventory control Implement Statistical Process Control

(SPC) methods Process optimization



Loss Reduction TechniquesLoss Reduction Techniques(Management Oriented Problems)(Management Oriented Problems)

Better planning and scheduling Improved cost allocation and accounting Implement continuous improvement

strategies Improve communications to employees



Loss Reduction TechniquesLoss Reduction Techniques(Environment Oriented Problems)(Environment Oriented Problems)

Relocate operations Develop alternative shipping methods Energy Efficiency




Not enough capacity


Too many steps



Cleaning & pickling processes

cause contamination



WWTP not big enough

Cleaning & acid tanks dumped too often



Dwell times over plating tanks are too

short

Not enough capacity

Too much metals

drag out

Brainstorm Ideas for Loss Reduction

Personnel Machine Method Material Management Environment




Not enough capacity


Too many steps



Cleaning & pickling processescause contamination



WWTP not big enough

Cleaning & acid tanks dumped too often



20% of the solutions solve 80% of the problems



Materials Loss AssessmentsMaterials Loss Assessments

From Webster’s Dictionary: Map - to explore or make a survey of Assess - to evaluate or appraise Audit - an examination of records or

accounts to check their accuracy




Aspects of Assessments (Audits)

Materials Balance-what comes out should equal what goes in

Improved Process Knowledge-better general understanding of how the system works




Goals and Products of the Assessment

Accurate Process Map Accurate Facility Layout Compilation of Inputs and Outputs Ideas on How to Improve the Process



Materials Loss AssessmentsMaterials Loss Assessments Opening Meeting-discuss what you will do

Walkthrough/Process Examination-do it

Closing Meeting-discuss what you did and future actions




Aspects of the Opening Meeting The right people: management, labor, line

personnel, EH&S An initial process map An initial plant layout Pertinent data and records Organization of the visit’s activities




The right people Management-authority to act Labor Shop Supervisor or Area Manager EH&S-to ensure regulatory compliance



Materials Loss AssessmentsMaterials Loss Assessments Process Map

Plant Layout

These are not the same thing!! For example:




Pertinent Data and Records Standard Operating Procedures Production Specifications Production Logs Vendor Information Purchasing Records Inventories MSDS’s Manifests, air data, sewer data, TRI data, etc.




Organization Safety requirements-PPE Single or multiple groups Who goes where? Who does what? When and where does the group reassemble?




Walkthrough/Process Examination Managing Inventory Production Processes Operating Practices Material Substitution Equipment Modification or Substitution By-product Concentration, Reuse, and Recycling




Managing Inventory “First in First Out” to reduce out of date Process and inventory by-products the same as raw

materials Control access to raw materials-pharmacy concept Purchase in appropriate quantities and containers Continuously evaluate less hazardous substitutes Implement Just-in-time delivery




Production Processes and Operating Practices Spill/leak prevention By-product segregation Improved raw material handling Preventive and predictive maintenance Employee training Effective supervision Employee participation programs Production planning and scheduling Cost allocation and accounting




Material Substitution Use more efficient raw materials

e.g. switch to aqueous cleaner use dry machining to eliminate waste

coolant More transfer efficient coatings

(e.g. powder coat)




Equipment Modification/Substitution Modificatione.g. New parts racking

Improved seals-teflon for neoprene

Better controls-Automated or PLC

Substitution (new equipment)e.g. Energy efficient dryer

FRP tanks for steel

Phase out obsolete equipment




By-product Concentration/Reuse/Recycling Concentration-Membrane Filtration to

Concentrate Wastes in Aqueous Cleaners Reuse- potato starch from rinse water, peels

for animal feed Recycling-cleaning agent recovery from

aqueous cleaning baths



Materials Loss AssessmentsMaterials Loss Assessments Closing Meeting

– Break to get organized

– Discuss what happened

– Correct inaccuracies in maps and data

– Generate loss prevention options Brainstorm ideas Team discussion

Determine next actions and assign tasks



Keys to a Successful Keys to a Successful AssessmentAssessment

Asking QuestionsDo you have to dump that coolant every two weeks?-closed

How do you decide when to dump the coolant?-open

Is there any way to reuse this material?-closed

Why does this material become a waste?-open

Have you tried any substitutes?-closed

What substitutes have you tried? How did they work?-open



Keys to a Successful Keys to a Successful AssessmentAssessment

Exploring a Process/System Ask many questions, even if they seem stupid Use other industries as examples Generate many ideas Do not overlook the obvious Look in avoided places Look at the big picture Examine a variety of information Never explore alone



Loss Reduction OpportunitiesLoss Reduction Opportunities

Previous modules– Gathered information,– Mapped process,– Found the root cause of the problem,– Assessed the process, and – Brainstormed some solutions

Present the solutions as a project.



Material Loss PresentationMaterial Loss Presentation You could report on the project’s -

– Expected cost savings– Expected capital expenses– Expected labor costs, and– Expected project results

Some projects may be sold before you leave, and Others will have to be compared financially with

completing company projects.



Corporate Priorities for Fund Corporate Priorities for Fund AllocationAllocation

1 – Cost Avoidance projects – Reduced head count– Reduced water usage

2 - Profit-sustaining projects– Equipment maintenance



Case-in-PointCase-in-Point

MARWI USA - Bicycle parts manufacturer– Problem - Eliminate WWTP operations

WMRC Presentation - – Use Membrane filtration to replace WWTP

– Save $$$ on WWTP operations & chemicals

– Save $$$ on parts washer chemicals

– Plant Manager had one question? How will this change increase my production?

– Not interested!



Right Ladder, Wrong WallRight Ladder, Wrong Wall Project focus was wrong Root Cause of problem - Increase production Should have looked at Production Changes

– Lost time = Labor Dump/Recharge Tank 8hrs X 26 dumps per year = 208 hours downtime/year Production Loss of 250 units per hour

– Proposed change = Increase of 52,000 units/year



Competing with Other ProjectsCompeting with Other Projects Cost savings alone won’t compete successfully. Characteristics of a project that influence project

acceptance include:– Relative advantage of the project work

Over idea superseded.

– Compatibility With existing company needs, values, and experiences.

– Complexity Perception of the difficulty to understand and use.



Competing with Other ProjectsCompeting with Other Projects

– Trialability Degree to which an implemented change can be

experimented with.

– Observability How visible are the project’s results.



Building a Better Building a Better “Projecttrap”?“Projecttrap”?

Use Membrane filtration to replace WWTP– Save $$$ on WWTP operations & chemicals– Save $$$ on parts washer chemicals




Membrane Filtration would - – Increase production by 5%

A relative advantage over the WWTP

– Increase production floor space by 11% Compatible with the company’s needs

– Extend process cleaning bath life Complexibility of operation is minimal




– Offered a pilot test to demonstrate unit Ease of operation compared to WWTP

– Employed plant personnel to run unit Hands on experience for familiarity

Change Agent gains– More trust,– More credibility, and– More success.



Total Cost AccountingTotal Cost Accounting

Total Cost Accounting (TCA) is a generic term for the long-term, comprehensive analysis of the internal costs and savings of loss prevention, energy efficiency, and other production projects.




TCA in less than 8 hours - Not possible! Applying the fundamentals of TCA are possible See the whole picture

– Using all costs and expenses involved




Direct Costs– Directly linked with project or process

Capital Expenses– Equipment and Installation,– Project Engineering,– Utility Connections, and– Buildings.

Operating and Maintenance– Raw Materials,– Labor, and– Utilities.




Hidden (Indirect) Costs– Costs “lumped” into general admin. accounts

Value of lost production, Value of rejected parts, Lost machine time, Insurance, and Regulatory permits, costs, and monitoring.



Total Cost AccountingTotal Cost Accounting Contingent Liability Costs

– Categories Accidental Releases

– Superfund sites and other clean-ups

Legal damages and settlements– Fines and penalties

– Attorney fees

– Difficult (if not impossible) to quantify Event uncertainty, and Costs & frequency difficult to estimate




Intangible Cost– Even harder to quantify

Increased sales due to product improvement, Improved Corporate Image, Customer Acceptance, and Community Goodwill.

ISO 9000 and ISO14001 Certification– Improved Corporate Image!




4 projects at Bumpers-R-Us– Evaluate spray cleaning to remove buffing compound.– Evaluate alternative buffing compounds– Evaluate membrane filtration for in-process recycling– Evaluate diffusion dialysis for acid recycling




Estimating Costs and Benefits hierarchically– If Direct costs are sufficient to warrant a project

No estimate required for other categories

– If Direct Costs are not sufficient, then estimate - Hidden costs, then Contingent Liability Costs, and finally Intangible Costs




Problem: Cleaning Process Inadequate Project Opportunity: Evaluate spray cleaning

step to remove buffing compound - $1.5 k Resources: WMRC parts cleaning lab Solution: Install spray washing nozzle on

stamping line



Install Spray Washing Nozzle Install Spray Washing Nozzle on Stamping Lineon Stamping Line

$0.00

$150,000.00

$300,000.00

$450,000.00

$600,000.00

$750,000.00

$900,000.00

Direct TCA

Hidden(includes lostproduction andwaste disposal)

Direct (includes2nd HCl dip, 2ndrinse, & labor)



Install Spray Washing Nozzle on Install Spray Washing Nozzle on Stamping LineStamping Line

$0.00

$3,000.00

$6,000.00

$9,000.00

$12,000.00

$15,000.00

Project Costs $14,700.00*

Consultant

Maintenance

Water

New plumbing

Labor

Chemicals

* Less the cost of 2nd cleaning process



Install Spray Washing Nozzle on Install Spray Washing Nozzle on Stamping LineStamping Line - Payback - Payback

Direct Costs

Process Cost = $136,150

Investment = $ 14,700

Savings = $122,650

Payback = 1.5 months

TCA Costs

Process Cost = $906,150

Investment = $ 14,700

Savings = $872,000

Payback = 6 days




Problem: Buffing compound hard to remove Project Opportunity: Evaluate alternative

buffing compounds - $2k Resources: Buffing compound vendors & WMRC

parts cleaning lab Solution: Switch to alternative buffing compound



Switch to Alternative Buffing Switch to Alternative Buffing CompoundCompound

$0.00$100,000.00$200,000.00$300,000.00$400,000.00$500,000.00$600,000.00$700,000.00$800,000.00$900,000.00

$1,000,000.00

Direct TCA

Hidden(includesdecreasedproduction)

Direct (includesbuffingcompound &2nd stagerinse)



Switch to Alternative Buffing Switch to Alternative Buffing Compound - PaybackCompound - Payback

Direct Costs

Investment = $ 0.00

Savings = $134,070.00

Payback = Immediately

TCA Costs

Investment = $ 0.00

Savings = 1,038,140.00

Payback = Immediately




Problem: Cleaning tanks become contaminated Project Opportunity: Evaluate membrane

filtration technology for in-process recycling - $6k Resources: WMRC pilot microfiltration system Solution: Implement in-process recycling system



Implement In-process Implement In-process Recycling SystemRecycling System

$50,000.00

$150,000.00

$250,000.00

$350,000.00

$450,000.00

$550,000.00

$650,000.00

$750,000.00

$850,000.00

$950,000.00

Direct TCA

Hidden (lossproduction of15,000bumpers)

Direct(cleaningchemicals)



Implement In-process Implement In-process Recycling SystemRecycling System

$0.00$10,000.00$20,000.00$30,000.00$40,000.00$50,000.00$60,000.00$70,000.00$80,000.00$90,000.00

Project Costs$81,420.00*

Consultant

Chemicals

Maintenance

Capital

*First year costs



Implement In-process Recycling Implement In-process Recycling SystemSystem - Payback - Payback

Direct Costs

Process Cost = $61,400.00

Investment = $63,000.00

Savings = $42,980.00

Payback = 1.5 years

TCA Costs


Investment = $ 63,000.00

Savings = $812,980.00

Payback = 28 days




Problem: Acid tanks become contaminated Project Opportunity: Evaluate diffusion dialysis

technology for recycling acid - $4.7k Resources: WMRC pilot diffusion dialysis system Solution: Implement acid recycling system



Implement Acid Recycling Implement Acid Recycling System - PaybackSystem - Payback

Direct Costs


Investment = $ 74,700.00

Savings = $181,500.00

Payback = 2 years

TCA Costs

Process Cost =$1,028,829.00

Investment = $74,700.00

Savings = $1,028,829.00

Payback = 9 months



TCA AdvantagesTCA Advantages

Most supportable cost estimates– Direct or Operational Costs, and– Hidden or Indirect Costs.

Minimizes time spent on uncertain estimates– Contingent Liability Costs, and– Intangible Costs.




Understanding the process– Process mapping – Root cause analysis

Assessing the process– Team approach

TCA Concepts– Hidden or indirect costs




Success!!




Questions and Answers

Proposed or Actual Projects


Thank You and have a safe trip home.The WMRC Staff

process improvement from a materials perspective

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