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

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

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

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  1. The Great Cookie Crisis – 2006Utilizing the Tools of Quality in PIM Performance Improvement Brian KoenigCPIM The Elmore Institute LLC Doug Brandt CPIM, CIRM Armstrong Air Conditioning

  2. 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

  3. 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

  4. Cookie Defects

  5. What issues hinder our success?? Corrective Action & Help!!! Continuous Improvement from optimizing Effectiveness and Efficiencies?

  6. 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.

  7. Kaoru Ishikawa • Tools • Support the processes • How and when • Methods = Results • Simple = Effective • Lean / ISO objectives • Employee Involvement • Continuous Improvement

  8. 1. Gantt Chart 2. Tally Sheets 3. Run Chart Scatter Diagram 5-Why’s Control Charts 4. Pareto Analysis 5. Flow Charts 6. Fishbone Analysis Corrective Action Matrix Failure Mode & Effects (FMEA) Poka-Yokes Basic Tools

  9. 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”!

  10. 1. Initial Activities • Member Selection • Problem Definition • Objectives • Project Timeline

  11. Assembling the Team • Core Members • Support Members • Initiator • Problem definition • Goal • Closure Beware!

  12. 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

  13. 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

  14. Gantt ChartNice Recruiting Tool !!!

  15. Communications and buy-in • Project Management • Methods, documentation & records • Up to individual organizations • What? Who? How? Results? • Training & Competencies

  16. 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

  17. Tally Sheet User Friendly!!!Defects – ‘000 DefectWk 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

  18. Run Chart

  19. “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

  20. Pareto ChartRule of 80/20

  21. Flow ChartCurrent

  22. 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.

  23. Ottawa BakingProject Goal Reduce the 6-Week moving average of Defective Cookies by 30% in 180 days. 12,000or less per week- Toledo 7,000or less per week -Atlanta

  24. 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.

  25. 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

  26. Fishbone

  27. Start counting last pack of M&M’s.

  28. 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.

  29. 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

  30. 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

  31. 6. Sustaining the Gains • Standardization and Work Guidance • Future Monitoring and Verification • What, Who, When, “How” • SPC – Control Charts • Departmental audits

  32. Standards (Specs - What) Clear image of desired conditions Make abnormalities obvious Simple and Visual Work Guidance (How) Robust - wide Dynamic - changing Input from users

  33. Standards & Guidance

  34. 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.

  35. 7. Revised ConditionAre we there yet?

  36. 8. Review and Record Keeping • Evaluation of activities, findings, methods, tools and results. • Story of the Team - summary • Each organization, own requirements

  37. Problem Description Goal Team & Input Current Process Current Condition Root Cause Analysis Counter Measures Future Condition Standardization Verification Documentation Results Team Review

  38. Story of the Team

  39. Reactive ??? Or Proactive???

  40. Hoshin PlanningAttaining Strategic Objectives 3 -Tier Policy Deployment – PDCA Cycles 1. Top Management 2. Middle Management 3. 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.

  41. Internal Objectives – Ottawa Baking 1. Employee Involvement 2. Visual Tools 3. Continuous Improvement Internal Tools – Ottawa Baking 1. Daily / Weekly Meetings 2. Department Scoreboard!!!

  42. Departmental Scoreboard • Know the objective • Assess the situation • Adjust and attack

  43. 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

  44. Summary • Tools identified and sequenced to help Ottawa Baking improve performance. • Departmental “scoreboard” to improve day-to-day operations.

  45. Thanks!!! Hope you enjoyed the presentation... Brian

  46. Appendix • Scatter Diagram • Control Charts • FMEA • Additional Reading

  47. Scatter Diagram

  48. 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

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