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    RENEWABLE ENERGY CORPORATION

    LEAN AT REC

    onsdag, 15. juni 2011

    Jonas Wallmander

    Learning's Lean implementation REC Scancell

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    2 2011 REC All rights reserved. Confidential

    Jonas Wallmander

    Development engineer, project leader ABB Robotics

    Process Engineer REC Scanmodule

    Process Engineer Leader REC Scanmodule

    Production Manager REC Scanmodule

    RBS & Performance Manager REC Scancell

    Performance, Process & Technology Manager REC Scancell

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    Outline

    Basic lean

    REC Business System (RBS)

    Scancell RBS implementation 2008 Q3 2010

    Scancell RBS implementation Q4 2010 2011

    Results & Conclusions

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    5 2011 REC All rights reserved. Confidential

    Lean basic

    Earnings = Price - Cost

    It is the customer

    that sets the price

    As a production unit the only

    thing that you can affect is

    the cost

    And do it thru shortening

    lead time, eliminate waste,

    improve safety, morale and

    get in control of your quality

    and performance indicators

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    REC Silicon employees working at the plant in Moses Lake WA, USARIGHT HERE AT REC

    REC Business System (RBS)

    In brief

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    DISCIPLINE

    5S

    ACCURATE FACTS, FIGURES &

    VISUAL MANAGEMENT

    CONTINUOUS IMPROVEMENT & SYSTEMATIC PROBLEMSOLVING

    LEVELING

    STABLE & RELIABLE PROCESSES (4M)

    WASTE

    REDUCTION

    CUSTOMER SATISFACTION

    BEST SAFETY - BEST QUALITY

    SHORTEST LEAD TIME - LOWEST COST

    0 DEFECTSPERFECT FLOW

    HSE & QUALITY

    R E C I D

    RPS PRINCIPLES

    INDUSTRIALIZATION

    TECHNOLOGY

    DEVELOPMENT & VALIDATION

    REALIZE THE POTENTIAL OF

    PRESENT TECHNOLOGY

    UNDERSTAND PRESENT TECHNOLOGY

    TECH.

    STEP CHANGE

    OPTIMIZED MANNING

    TRAINING

    CRITICAL COMPETENCE

    ORGANIZATIONAL STRUCTURE ROLES AND

    RESPONSIBILITIES

    REC

    LEADERSHIP

    STABILITY

    &

    CONTINUOUS

    IMPROVEMENTS

    The House

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    Principles of the house

    Work from the ground and up

    Start with common values and

    principles and then use the tools

    The result appears in the internally

    in the ceiling and externally on the

    rooftop

    DISCIPLINE

    5S

    ACCURATE FACTS, FIGURES &

    VISUAL MANAGEMENT

    CONTINUOUS IMPROVEMENT & SYSTEMATIC PROBLEMSOLVING

    LEVELING

    STABLE & RELIABLE PROCESSES (4M)

    WASTE

    REDUCTION

    CUSTOMER SATISFACTION

    BEST SAFETY - BEST QUALITY

    SHORTEST LEAD TIME - LOWEST COST

    0 DEFECTSPERFECT FLOW

    HSE & QUALITY

    R E C I DRPS PRINCIPLES

    INDUSTRIALIZATION

    TECHNOLOGY

    DEVELOPMENT & VALIDATION

    REALIZE THE POTENTIAL OF

    PRESENT TECHNOLOGY

    UNDERSTAND PRESENT TECHNOLOGY

    TECH.

    STEP CHANGE

    OPTIMIZED

    MANNING

    TRAINING

    CRITICAL COMPETENCE

    ORGANIZATIONAL STRUCTURE ROLES

    AND RESPONSIBILITIES

    REC

    LEADERSHIP

    INDUSTRIALIZATION

    TECHNOLOGY

    DEVELOPMENT & VALIDATION

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    Standardize all activities

    Customer-supplier connection

    Optimize flow

    Improvements & Problem solving

    1

    2

    3

    Basic design

    of the system

    4Developingthe System

    Standard

    method

    & execution

    Supplier

    Custome

    r

    3

    1

    2

    4

    Our Principles help developing and implementing RPS

    They are the linchpin of the system

    SPL

    Business

    Case

    Current

    Condition

    Target

    Measure

    Action plan

    1. UNDERSTAND YOUR BUSINESSCASE

    Problem

    Team

    2. ORGANIZE YOUR PEOPLE

    3. DESIGN AND IMPROVE YOUR SYSTEM

    USE OUR RULES IN USE (RiU)

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    REC Wafer production plant, Herya, NorwayRIGHT HERE AT REC

    RBS ImplementationREC Scancell 2008 Q3 2010

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    2008 - 2010

    Extensive Lean program started

    External consultants into Scancell

    JMAC

    BCG

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    Organization

    External organization to implement RBS RBS leader

    Operators

    Engineers

    Consultants

    Scancell

    organization

    RBSorg.

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    Everything needs to be followed up else it will faill

    Improvement

    Time

    Follow up is the key

    to holding a standard

    Without Holding

    standard

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    Follow up and train

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    To sustain the improvement even the manager has to be

    followed up

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    18 2011 REC All rights reserved. Confidential

    Examples from REC ScanCell in Narvik

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    Six sigma implementation in production

    19

    Target OK Target Avg Range

    INPUT

    OUTPUT

    CONTROL

    CONDITIION

    PROCESS MAP Units Meas Sys Sampling Freq

    Sheet R ohm 4 point 5 1/hr

    Reflect ivity % Optical 100%

    Surface 100%

    PROCUCT PROCESS CONTROL PLAN

    1. SIPOC 2. Flow Chart

    4. Process Map

    ProcessOutputInput

    Control

    Condition3. Focus Diagram (P-diagram)

    Process

    M

    AR

    OCAP

    5. Regulation System 6. Control Plan

    Units Meas Sys Sampling Freq

    Sheet R ohm 4 point 5 1/hr

    Reflec tivity % Optical 100%

    Surface 100%

    Failure Mode Effect Analysis

    7. FMEA

    O

    CI

    MP

    i1 c1 c2 c312

    8. Elimination Tree

    SPC

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    Visual management and meeting structure

    Critical Process Management (CPM)Meeting Stabilization process engineer meets with equipment

    engineer and operator to report process and

    equipment errors

    Purpose is to solve the problem at the source and

    create communication in-between operator and

    engineers

    Production meeting Escalation of problems that not are solved at the

    CPM meetings

    High management attention

    All KPIs reported both leading and lagging ex.

    Number of Job observation, sick leave,

    environmental pollution,..

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    Value Analysis of the impact of different KPIs

    Find the KPIs that are driving cost down

    Waste, Fixed cost

    Yield

    Cycle time

    Efficiency

    Availability

    Have a two weeks workshop brainstorming and make pre-studies to understand

    what projects to run

    Create a project roadmap for the coming year and put focus on getting the high

    priority projects implemented. Run all projects according to RBS prinsiples

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    How to get people to walk the extra mile

    Create the team thatwill make the change

    Management team and

    some extra functions

    Create the Burning

    Platform

    Business case for the

    site

    Point out the road

    where to go Follow up frequently

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    REC panels installed in a power plant in Alicante, Spain.System size of 8 MW, powering 4 896 householdsRIGHT HERE INALICANTE

    Results &

    Conclusions

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    Learning's

    Lean takes time and no1 is the right leaders with the right mindset

    To get speed in implementation you need a common understanding in the entireorganization

    Competence is often the biggest hinder in an Lean implementation

    Time for training is often underestimated

    By having an external Lean team you get the speed up but there are risk of low

    ownership in the organization.

    Dont do it as a leader if you are not willing to go the entire way with follow up andbeing the leading example