Six Sigma Quality Engineering: Week 2 Introduction To Six Sigma Macro Model of Six Sigma Management

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CSUN

Engineering Management

Six Sigma Quality Engineering

Week 2 Introduction to Six Sigma Macro model of Six Sigma Management

Chapters 1,2 & 3 Outline


Values of Six Sigma Development & Timeline of Six Sigma Management Benefits of Six Sigma Management Voice Of the Process (VOP) Variation in a Process Voice Of the Customer (VOC) Roles and responsibilities in Six Sigma Management Technical terminology of Six Sigma Management Six Sigma Methodology (DMAIC) Six Sigma Macro Model (Dashboards)\ Six Sigma BB project presentation

Values of Six Sigma


Six Sigma is a process that enables companies to increase profits dramatically by streamlining operations, improving quality, and eliminating defects or mistakes in everything a company does, from raw materials to finish goods. A Six Sigma process generates a defect probability of 3.4 parts per million (PPM).
1. 2. 1. 2. Key activities in Six Sigma are: Understanding customer needs (in quantifiable terms) Translating the needs into the measurable outcomes Key objectives in Six Sigma are: Understanding & measuring the process inputs Looking at the root causes of variation

The Focus of Six Sigma

Y=
Y Dependent Output Effect Symptom Monitor
n
n n n n n

f (X)
X1 . . . X N Independent Input-Process Cause Problem Control

If we are so good at X, why do we constantly test and inspect Y?

Six Sigma Companies


s
Allied Signal Boeing Caterpillar General Electric Nonconformities PMO

308,770

3
4 5 6
Process Capability

66,811
6,210 233 3.4
Parts per Million Opportunities

John Deere & Co


Lockheed Martin Motorola

The sigma scale of measure is perfectly correlated to such characteristics as defects-perunit, parts-per million defective, and the probability of a failure/error.

Polaroid
Sony

Timeline of Six Sigma Management


1978 Poor Quality!!! Motorola sells it TV business. When asked why, VP states QUALITY STINKS!

Did not co-operate across division Ignored customer requirements

Diluted culture with new employees without training


Did not realize that Sigma had limitations

Was an internally focused program

Timeline of Six Sigma Management


1980 1981 1985 1987 1988 Corporate Quality Officer appointed Training Center established Began to measure total defects/unit Corporation adopts Six Sigma program, Six Sigma goal to be achieved by 1992 Motorola wins Malcolm Baldridge Award at the corporate level

1990
1992 1993

Six Sigma Research Institute formed.


Blackbelt infrastructure developed and implemented at Motorola, Kodak, TI, IBM, and Digital. Motorola hires 40,000 new employees and removes the 40 hour quality training program. Revenue growth averages 27% growth.

Timeline of Six Sigma Management


1994 1998 Motorola owns 60% of the wireless phone market. Six Sigma Academy formed. Motorola owns 34% of the wireless phone market. Revenue growth is 5%. Shareholder value is 1%; it had averaged 54% in previous 3 years.

Six Sigma Companies Produce superior, reliable, and customer-satisfying products

Are faster, better, cheaper, and more efficient than their competitors

Benefits of Six Sigma Management


Improve process flows Reduce total defects Reduce process cycle time Enhance Customer and Employee satisfaction Help reduce inventory Help improve capacity and output Help increase quality and reliability Help decrease product costs Help improve product delivery to custumer

Voice Of the Process (VOP)

A process is a collection of interacting components that transform inputs into outputs toward a common aim.

Inputs
Components Machines Operators

Process
Assembly Test Final Inspection Ship to Customer

Outputs
Customer receives product

Variation in a Process
What is Variation?
The enemy of certainty The enemy of customer satisfaction Drives the unknown Adds to customer (and employee) disbelief Adds to lack of confidence in the ability of processes Increases risk that a result will not meet expectations Variation is a driver of defects

For any process, variation is the main reason for poor performance...

Variation is the key focus of Six Sigma

Variation in a Process

Feedback Loops
A feedback loop relates information about outputs from any stage or stages back to another stage or stages to make an analysis of the process.

Inputs

Process

Outputs

Feedback Loop

Voice Of the Customer (VOC)


It is vital that we understand and are able to quantify what is critical to the customer's satisfaction. LSL USL

No Good Loss Unhappy Customer

Good
No Loss

No Good Loss Unhappy Customer

Nominal Value

Voice Of the Customer (VOC)


Critical to Customers satisfactions: High quality Lowest possible price Products deliver on time Therefore Producers should bring forth these products in a manner that minimizes cost and cycle time and maximizes profit

Voice Of the Customer (VOC)


We need to ask ourselves... How easy it is for our customers to do business with us? Are we making assumptions about what customers need? How often do we ask our customers (internal and external) what they need? Is this information properly communicated throughout our organization.

We must place a value and emphasis on the customer, take measurements and measure inputs, not just outputs

Customer Satisfaction?
Do you have dissatisfied customers? Historically 1 in 25 unsatisfied customers express their dissatisfaction

1 unsatisfied customer typically tells 7-16 others.

It cost about five times more to attract a new customer as it does to keep an old one.

Roles and responsibilities in Six Sigma Management

Senior Executive
Provides the impetus, direction & alignment necessary for Six Sigma ultimate success. Senior Executive should:
1. 2. 3. 4. Study Six Sigma management Link companys objectives to Six Sigma projects Champion Six Sigma projects Constantly review Six Sigma projects progress

Executive Committee Member


They are the top management of an organization. Executive Committee Members should:
1. 2. 3. 4. 5. Deploy Six Sigma throughout the organization Prioritize and manage Six Sigma portfolio Assign champion, BB and GB to Six Sigma projects Remove barriers to Six Sigma management Provide resources for Six Sigma management

Roles and responsibilities in Six Sigma Management

Champion
Take a very active sponsorship and leadership role in conducting and implementing Six Sigma projects. Champions should:
1. Identify the project on the organizational dashboard 2. Provide an ongoing communication link between the project team and Executive committee 3. Keep the team focused on the project by providing direction and guidance 4. Assure that Six Sigma methods and tools are being used in the project

Master Black Belt


Takes a leadership role as keeper of the Six Sigma process and advisor to executives or business unit managers. Master Black Belt should:
1. Counsel senior executives and business unit managers on Six Sigma management 2. Continually improve and innovate the organizations Six Sigma process 3. Apply Six Sigma across across both operations and transactions-based process 4. Mentor Green Belts and Black Belts

Roles and responsibilities in Six Sigma Management

Black Belt
Is a full time change agent and improvement leader. Black Belts should have the following characteristics:
1. 2. 3. 4. Technical and managerial process improvement/innovation skills Understand the psychology of individuals and teams Not intimidated by upper management Has a customer focus

The responsibilities of a Black Belt include:


1. Communicate with the champion and process owner about progress of the project 2. Help team members design and analyze experiments 3. Provide training in tools and team functions to project team members 4. Coach Green belts leading projects limited in scope

Roles and responsibilities in Six Sigma Management

Green Belt
Is an individual who works on projects part time, either as a team member for complex projects or as a project leader for simpler projects. Green Belts have the following responsibilities:
1. 2. 3. 4. Define & review project objective with projects champion Facilitate the team through all phases of the project Analyze data through all phases of the project Train team members in the use of Six Sigma tools and methods through all phases of the project

Process Owner
Is the manager of a process. The process owner should be identified and involved in all Six Sigma projects relating to the process owner area. A process owner has the following responsibilities:
1. Empower employees to follow and improve best practice methods 2. Accept and manage the improved process after completion of the Six Sigma project 3. Understand how the process works, the capability of the process, and the relationship of the process to other processes in the organization

Technical terminology of Six Sigma Management


Critical-To-Quality (CTQ): Is a measure of what is important to a customer. Defect: Is a nonconformance on one of many possible quality characteristics of a unit that causes customer dissatisfaction Defects per Million opportunities (DPMO): A quality metric often used in the Six Sigma process. It is calculated by the number of defects observed divided by the number of opportunities for defects compared to 1 million units. Yield: Is the proportion of units within specification divided by the total number of units. Rolled Throughput Yield (RTY): Is the product of the yields from each step in a process.

Six Sigma Methodology (DMAIC)


Project Name: DMAIC PROCESS AND PHASE GATE Define Met Define Phase Criteria
Define Customers and Requirements (CTQs) Develop Problem Statement, Goals and Benefits Identify Champion, Process Owner and Team Define Resources Evaluate Key Organizational Support Develop Project Plan and Milestones Develop High Level Process Map

Estimated Actual completion completion date date

Status

No

Measure Met Measure Phase Criteria


Define Defect, Opportunity, Unit and Metrics Detailed Process Map of Appropriate Areas Develop Data Collection Plan Validate the Measurement System Collect the Data Begin Developing Y=f(x) Relationship Determine Process Capability and Sigma Baseline

No

Six Sigma Methodology (DMAIC)


Analyze Met Analyze Phase Criteria
Define Performance Objectives Identify Value/Non-Value Added Process Steps Identify Sources of Variation Determine Root C ause(s) Determine Vital Few x's, Y=f(x) Relationship

No

Improve Met Improve Phase Criteria


Perform Design of Experiments Develop Potential Solutions Define Operating Tolerances of Potential System Assess Failure Modes of Potential Solutions Validate Potential Improvement by Pilot Studies C orrect/Re-Evaluate Potential Solution

No

Control Met Control Phase Criteria


Define and Validate Monitoring and C ontrol System Develop Standards and Procedures Implement Statistical Process C ontrol Determine Process C apability Develop Transfer Plan, Handoff to Process Owner Verify Benefits, C ost Savings/Avoidance, Profit Growth C lose Project, Finalize Documentation C ommunicate to Business, C elebrate

No

Six Sigma Macro Model (Dashboards)


A dashboard is a tool used by management to clarify and assign accountability for the critical few key objectives, key indicators, and project tasks needed to steer an organization toward its mission statement. There are four basic categories of dashboard key objectives: Financial Key Objectives Process Improvement Key Objectives Innovation/Customer Satisfaction Key Objectives

Employee Growth and Development Key Objectives

Six Sigma Macro Model (Dashboards)


Los Angeles 2006
Greater than 10% from Plan Between 10% and 5% from Plan Within 5% of Plan

STAKEHOLDER

KEY MEASUREMENT Cumulative Sales Growth Over Market CFROGC

DIAGNOSTIC MEASUREMENT

2005 Actual

Actual/ Plan Cum Actual Cum Plan Actual Plan Actual Plan Actual Plan Actual Plan Cum Actual Cum Plan Cum Actual Cum Plan Actual Plan Cum Actual Cum Plan Cum Actual Cum Plan Actual Plan

JAN
9,080 9,702 6.3% 21.9% 150 139.5 41.9 43.3 47 50

FEB
18,847 19,433 28.4% 19.1% 152.6 137.5 46.8 43.5 57 50 3

MAR
29,546 29,164 22.0% 22.8% 140.9 136.3 48.6 43.5 78 50 501 389 12.2% 14.0% 0.7% 0.7% $1,092 $265 $76 $39 3.5 3.5

APR
40,519 38,846 23.1% 16.9% 146.3 133.5 47.4 44 42 50 1,701 409 13.0% 13.2% 1.2% 0.7% $1,530 $370 $81 $52 3.1 3.5

105792 20.9% DOH DSO DPO 133 45 27 1,517 12.0% -3.3% Material Cost Out ($ 000's) Factory Cost Out ($ 000's) Lean Score $2,320 $1,000 3.5

SHAREHOLDERS

Capital Expenditures ($ 000) Operating Margin Productivity

2.3% 14.5% 0.5% 0.7% $280 $105 $26 $13 3.5 3.5

3 11.4% 13.4% 2.0% 0.7% $653 $160 $46 $26 3.5 3.5

Six Sigma Macro Model (Dashboards)


Product OTD Past Due $ ($ 000's) MPS OTD Supplier OTD CUSTOMERS 3 Month Rolling Product Quality (DPPM) 3 Month Rolling Supplier Quality (DPPM) Dev. Program Milestone OTD OCA Action Item OTD Employee Survey Action Item OTD Safety TCIR SUPPLIERS Spend/Strategic Supplier ($000) Environ Audit Action Item OTD Charitable Contributions ($ 000's) 62.1% $7,213 14.6% 57.3% 2706 Plan Actual 9594 50.0% 0.0% 80.0% 2.0 $0 1 $8,311 Cum Plan $708 $1,416 $2,124 $2,832 Plan Actual Plan Actual Plan Actual Plan Actual Plan Actual Plan Actual Plan Cum Actual 12000 75.0% 75.0% 0.0% 0.0% 8.8 5.0 $0 0 $648 10000 66.7% 75.0% 0.0% 0.0% 4.7 4.0 $0 100.0% 1 $1,195 9500 42.9% 75.0% 0.0% 0.0% 2.8 2.9 $0 100.0% 1 $1,893 9000 66.7% 75.0% 0.0% 10.0% 10.0% 2.3 2.7 $0 100.0% 1 $2,406 3000 8765 3000 8488 3000 18974 3000 1087 Actual Plan Actual Plan Actual Plan Actual Plan Actual 56.4% 60.0% $8,262 $8,000 13.1% 0.0% 60.5% 57.0% 2012 63.7% 63.0% $8,100 $7,500 6.2% 0.0% 53.5% 58.0% 1534 60.6% 65.0% $6,973 $7,000 7.6% 10.0% 60.0% 59.0% 1783 65.6% 68.0% $5,886 $6,500 4.8% 11.0% 55.4% 60.0% 2000

EMPLOYEES

COMMUNITY

Plant Performance Dashboard

Supplier to Plant Delivery-Los Angeles, CA Delivery Delivery-Los


MONTHLY PERFORMANCE
70.0%

On-Time Delivery To Request-Los Angeles, CA On Request On-Time Request-Los


MONTHLY PERFORMANCE
100% 95% 90% 85% 80% 75% 70% 65% 60%

Customer Past Due-Los Angeles, CA Due Due-Los


MONTHLY PERFORMANCE ($M)
$7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00

Supplier Quality (DPPM)-Los Angeles, CA (DPPM) (DPPM)-Los


MONTHLY PERFORMANCE
35000 30000 25000 20000 15000 10000 5000 0
1 00.0%

Plant Quality (Customer -Los Angeles, CA Customer DPPM DPPM) )-Los


MONTHLY PERFORMANCE REASON CODES
100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Technical Problem Instruction Error Operator Error Supplier Equip Malfunction

REASON CODES

REASON CODES

CUSTOMERS AUGUST 2004

REASON CODES

100.0% 90.0% 80.0% 70.0% 60.0% Actual Goal

1 0 0
Actual Goal

REASON CODES

60.0% 50.0% 40.0% 30.0%

$ 2 .0 0

1 .4 8 7

5 0 0

Actual G oal

$ 1 .5 0 $ 1 .0 0 $ 0 .5 0

1 .3 1 4

Actual Goal
50.0%

Note: Note: All All units units rejected rejected from from supplier, supplier, coded coded as as supplier supplier responsibility, responsibility, affect affect Supplier Supplier DPPM. DPPM. Therefore, Therefore, supplier supplier DPPM DPPM is is the the result result of of Supplier Supplier Failure. Failure.
S u p p lier F ailu re T ech n icalPro b lem

0 .3 8 5

0 .2 4 3

Jan Feb

Jun

Jul Aug

Oct Nov

Apr May

Sep

Mar

2003

Dec

20.0% 10.0% 0.0%


Rec'd Early Supplier Failure Planning Problem

0 .1 7 3 B o e in gD e f.

6000 5000 4000 3000 2000 1000 0

Favorable Favorable Direction Direction

A ctua l G o a l

Jan

Jun

Feb

Aug

Sep

Mar

Nov

Apr

Jul

2003

May

Dec

Oct

0.0%

B o e in gP H U SG o v't S p a re s G u lfstre a m B .F .G o o d rich

ACTION PLANS ACTION PLANS


F o c u s Ar e a s
R ec eived early R ec eived early S upplier F ailure S upplier F ailure P lanning P roblem

ACTION PLANS

ACTION PLANS

20 03 Jan Fe b M ar Ap r M ay Jun Ju l Au g Se p O ct No v De c

S u p p lie r P e rfo rm a n c e

S a le sO rd e r P ro b le m

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

2003

Dec

L a teF a c to ry

T e c h n ic a l P la n n in gP ro b le m P ro b le m

20 03 Ja n Fe b Ma r Ap r Ma y Ju n Ju l Au g Se p Oc t No v De c

$ 0 .0 0

ACTION PLANS
M endoz a/ Quality m gr. S teve B rak ebill, S QE K arl Fis c her, S QE M endoz a/ Quality m gr. K arl Fis c her, S QE S QE s

Focus Areas
Focus Area Actions See suplier OTD actions Review and measure exceptions message resolution in each of the focused factories Lebetsamer/ McBroom Access database for planners backlog Support of schedule tool Re-organization of manufacturing and supply chain. Lebetsamer/ McBroom Lebetsamer/ McBroom Harris Owner Due date

Actions
Housings are being inspected and reworked to B/P. Laps are in process at Dow. Additional focus provided by assigning a government spares champion (Reduced from $3.3M down to $1.3M) Developed a backlog-to-customer PO reconciliation process. (Our backlog did not match Gulfstream's PO dates).

Owner
Shaham

Due Date
2/1/2005

S upplier Failure

Rationaliz ing s upplier bas e V 22 s ourc e ins pec tion at Dow M aintain s upplier c orrec tive ac tion s y s tem

Action Ite m s
Ongoing Com plete Ongoing

Is s ue # 1 2 3

Expe cte d Re s ults Reduce errors Work Instructions Focus on key areas

Re s pons ible Team Team QE

Ope n Jun-04 Jul-04 Apr-04

Due Date Nov-04 Nov-04 Oct-04

Status Open Open Open

Boeing of Philadelphia

Establish Final Insp C/A Feedback Process Revision & Training f or QCD 191, Final Insp Establish DPPM by Focus Factory

Ac tio n s
H igh volum e, low dollar s uppliers lik e C havers G as k et and B ora are s hipping early . C alled ow ners to ens ure they unders tand the new five day early , on tim e delivery w indow . M etric early toleranc e c hanged from infinite to 5 day s . P olic y enforc em ent U .S . B all C orp. s toc k ing program (another high volum e low c os t s upplier) R ationaliz ing s upplier bas e (A lpine, W C L, B levins , V ik ing) S uppliers now have forw ard vis ibility for s ub-c ontrac t P O 's to plan their c apac ity needs . C M C added as C ertified S upplier - 62% of C M C parts are now s hip to s toc k and a thrid of all rec iepts are s hip to s toc k .

Owner
M endoz a M endoz a T. M endoz a T. M endoz a/ Q uality m gr. T. M endoz a M endoz a

D u e D a te
C om plete O ngoing 50% c om plete 11/30/2004 O ngoing C om plete C om plete

Late Supplier Planning Problem

US Govt Spares
On-going

Dumlao Healy

On-going on-going backlog scrub


Continue S upplier Counc il es tablis hed, 1s t m eeting M arc h, '04 V 22 s ourc e ins pec tion at TP T Continue Certified S upplier P rogram rollout Com plete

Gulfstream
On-going Complete Complete

Ongoing

Note: Note: 54 54 Returns Returns for for Oct Oct 2004. 2004. 33 33 Units Units determined determined to to be be Customer Customer Responsibility Responsibility or or No No Fault Fault Found Found 17 17 Units Units not not evaluated evaluated as as of of the the date date of of this this reporting reporting 4 4 Units Units were were determined determined to to be be Eatons Eatons Responsibility Responsibility DPPM DPPM Calc. Calc. = = 21/6685 21/6685 * * 1,000,000 1,000,000 = = 3141 3141 Units Units determined determined to to be be Customer Customer Resp. Resp. or or No No Fault Fault Found Found not not used used in in calculation calculation

Quality Index(Customer -Los Angeles, CA Customer DPPM DPPM) )-Los


MONTHLY PERFORMANCE REASON CODES
100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Technical Problem Instruction Error Operator Error Supplier Equip Malfunction

Productivity-Los Angeles, CA Productivity Productivity-Los


MONTHLY PERFORMANCE
70.0%

Inventory and DOH-Los Angeles, CA DOH DOH-Los


MONTHLY INVENTORY PERFORMANCE ($M)
$30,000,000 $25,000,000

Health &Safety-Los Angeles, CA &Safety &Safety-Los


Lost Workday Case Incident Rate (LWCIR)
1.00 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00
2003 Jan Feb Mar Apr May Jun Jul Aug Sep Oct

REASON CODES

MONTHLY DOH PERFORMANCE


160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0
Favorable Direction

Total Case Incident Rate (TCIR)

60.0%

20 0 20 2 0 20 3 04 Ja n Fe b M ar Ap M r a Ju y ne Ju ly Au Se g pt O ct No v D Be C e c nc o m hm p ark

6000 5000 4000 3000 2000 1000 0

A ctua l G o a l

90.0% 80.0% 70.0%

Actual Goal

Inventory $

60.0% 50.0% 40.0% 30.0%

$20,000,000 $15,000,000 $10,000,000 $5,000,000 $0

DOH

Favorable Favorable Direction Direction

100.0%

4 .00
Actual Goal

A ctu a l 2 .00 0 .00 G oa l

Jan Feb

Jun

Apr May

Jul Aug

Sep

Mar

Oct Nov

2003

Dec

No v

20 03 Jan Fe b M ar Ap r M ay Jun Ju l Au g Se p O ct No v De c

10.0%
YTD Monthly Comparative Benchmark

Goal

0.0%
Rec'd Early Supplier Failure Planning Problem

YTD

Monthly

Comparative

Benchmark

Goal

Nov

Dec

ACTION PLANS
Action Ite m s Establish Final Insp C/A Feedback Process Revision & Training f or QCD 191, Final Insp Establish DPPM by Focus Factory Is s ue # 1 2 3 Expe cte d Re s ults Reduce errors Work Instructions Focus on key areas Re s pons ible Team Team QE Ope n Jun-04 Jul-04 Apr-04 Due Date Nov-04 Nov-04 Oct-04 Status Open Open Open

ACTION PLANS ACTION PLANS


F o c u s Ar e a s
R ec eived early R ec eived early S upplier F ailure S upplier F ailure P lanning P roblem

ACTION PLANS

Inv. Type

Ac tio n s
H igh volum e, low dollar s uppliers lik e C havers G as k et and B ora are s hipping early . C alled ow ners to ens ure they unders tand the new five day early , on tim e delivery w indow . M etric early toleranc e c hanged from infinite to 5 day s . P olic y enforc em ent U .S . B all C orp. s toc k ing program (another high volum e low c os t s upplier) R ationaliz ing s upplier bas e (A lpine, W C L, B levins , V ik ing) S uppliers now have forw ard vis ibility for s ub-c ontrac t P O 's to plan their c apac ity needs . C M C added as C ertified S upplier - 62% of C M C parts are now s hip to s toc k and a thrid of all rec iepts are s hip to s toc k .

Owner
M endoz a M endoz a T. M endoz a

D u e D a te
C om plete O ngoing 50% c om plete 11/30/2004 O ngoing C om plete C om plete

WIP

Note: Note: 54 54 Returns Returns for for Oct Oct 2004. 2004. 33 33 Units Units determined determined to to be be Customer Customer Responsibility Responsibility or or No No Fault Fault Found Found 17 17 Units Units not not evaluated evaluated as as of of the the date date of of this this reporting reporting 4 4 Units Units were were determined determined to to be be Eatons Eatons Responsibility Responsibility DPPM DPPM Calc. Calc. = = 21/6685 21/6685 * * 1,000,000 1,000,000 = = 3141 3141 Units Units determined determined to to be be Customer Customer Resp. Resp. or or No No Fault Fault Found Found not not used used in in calculation calculation

T. M endoz a/ Q uality m gr. T. M endoz a M endoz a

Action items DexM Kanban, Vendor Managed Inventory, Adding an additional 300 parts to the program Lead-time Reductions Obsolete and Excess disposal Re- alignment of schedule for purchased and manufactured parts for year end. Bring in only what is needed.

Status In progress

Results To Date 100K reduction - slated for Dec.6th '04.

A ctio n Ite m s ESP BOS has dev eloped ac tion plan BOS team has prioritiz ed ESP elements

Is s u e #

Exp e cte d Re s u lts ac tions to c omplete ESP Work key is s ues f irs t Conduc t tec hnic al training improv e ergonomic s priortiz e s af ety w ork orders

Ongoing Ongoing Ongoing

3400 Lead-times reduced 1.7M with expected additional 250K by year end. 964k moved to 2005 with an additional 200k by year end

Corporate planning to dev elop tec h. Training f or 2005' Inc lude Ergonomic s /repetitiv e motion s tudy Building Saf ety w ork order program

Dev eloping s af ety SOP f or all proc edures

A ll proc eedures w ill inc lude s af ety

3 00 2 n Ja b Fe ar M r p A ay M Jun l Ju g u A p e S ct O v o N c e D
R e s p o ns ib le

Ja n

Ju n

Ju l Aug

02

03

04

De c Co m p Bm k

Sep

Feb

Apr

ar

20

20

20

O ct

ay

20.0%

Du e Date Mar-04 A pr-04 A pr-05 A pr-05 Dec -04

Statu s Done Done Corporate plans f or 2005 Corporate plans f or 2005 Starting to trac k Working w ith produc t audit group

BOS team BOS team RNR RNR RNR

RNR

Nov -04

Supplier to Plant Delivery -Los Angeles, CA Delivery-Los


MONTHLY PERFORMANCE
70.0%

REASON CODES

100.0% 90.0% 80.0% 70.0% 60.0% Actual Goal

60.0% 50.0% 40.0% 30.0%

Jan Feb

Jun

Apr May

Jul Aug

Sep

Mar

Oct Nov

2003

Dec

20.0% 10.0% 0.0%


Rec'd Early Supplier Failure Planning Problem

ACTION PLANS
F o c u s Ar e a s
R ec eived early R ec eived early S upplier F ailure S upplier F ailure P lanning P roblem

Ac tio n s
H igh volum e, low dollar s uppliers lik e C havers G as k et and B ora are s hipping early . C alled ow ners to ens ure they unders tand the new five day early , on tim e delivery w indow . M etric early toleranc e c hanged from infinite to 5 day s . P olic y enforc em ent U .S . B all C orp. s toc k ing program (another high volum e low c os t s upplier) R ationaliz ing s upplier bas e (A lpine, W C L, B levins , V ik ing) S uppliers now have forw ard vis ibility for s ub-c ontrac t P O 's to plan their c apac ity needs . C M C added as C ertified S upplier - 62% of C M C parts are now s hip to s toc k and a thrid of all rec iepts are s hip to s toc k .

Owner
M endoz a M endoz a T. M endoz a T. M endoz a/ Q uality m gr. T. M endoz a M endoz a

D u e D a te
C om plete O ngoing 50% c om plete 11/30/2004 O ngoing C om plete C om plete

Questions? Comments?

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