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new KPI TEEP in Lean Six Sigma

World Class OEE is generally accepted as >85%

The world class OEE performance of 85% is comprised of:

Availability = 90%

Performance = 95%

Quality = 99.9%

Research indicates that average OEE for manufacturing plants is 60%

How does your organisation compare against the ‘best in class’ performance?

Imagine what a 40% improvement in OEE (going from 60% to 85%) could do for your organisations competiveness and profitability!

Organisations are now factoring in how often the equipment is used throughout the year (24/7) – this is called the Loading.  For example if the equipment is used for 40 hours in a week (168 hours) the loading is 40/168 = 23.8%

This can be factored into the relatively new KPI – Total Effective Equipment Performance (TEEP) metric as follows TEEP = Loading x OEE

Black Belt training during the summer in Würzburg

during the months of July and August there will be several green and black belt session for Lean Six Sigma; all events will be held in the Maritim Hotel in Würzburg.

Zentral und unweit des Hauptbahnhofs erwartet das stilvolle Maritim Hotel Würzburg seine Gäste. Direkt am Mainufer gelegen, bietet es einen herrlichen Ausblick auf die Festung Marienberg, die hoch über der Stadt thront. Die barocke Innenstadt mit ihren zahlreichen Sehenswürdigkeiten lässt sich bequem zu Fuß erkunden. Elegantes Ambiente, verbunden mit herzlicher Gastfreundschaft, und der direkte Anschluss an das Congress Centrum Würzburg schaffen ideale Voraussetzungen für jeden Reisezweck.

 

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Lean in Engineering

Two dimensions of Lean in Engineering
Lean in Engineering / Product Development deals primarily with information as the material to its processes
It goes beyond Lean in Manufacturing in so far as the product is not yet defined

Thus there are 2 dimensions to Lean in Engineering / Product Development:

1.Process dimension:
–mastering processes to meet the time, quality, and cost expectations of the markets
–making processes manageable and measurable
–providing as much space for knowledge and creativity to unfold as possible
2.Product dimension:
–finding the best solutions to a given problem
–changing less in detail phase

Generally, mastering the process dimension is the prerequisite for mastering the product dimension

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Lean Development in Lean Six Sigma

The 13 Lean Development principles are:

  1. Establish customer value
  2. Front-load the Product Development process
  3. Levelled Product Development process flow
  4. Rigorous standardisation
  5. A Chief Engineer System to integrate development
  6. Balance functional and cross-functional expertise
  7. Towering technical competence in Engineers
  8. Integrate suppliers into the PD system
  9. Build in learning and continuous improvement
  10. Build a culture to support excellence and relentless improvement
  11. Adapt technology to fit your people and processes
  12. Align the organisation through visual communication,, ensuring problems are visible
  13. Enable organisational learning
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Lean Product Development

People & Partners

– Chief Engineer Role in Development phase (misunderstood in Aerospace Industry)

§ Highly experienced in Product development, small team, clear technical authority over all internal & external Eng’s, Voice of the Customer, guardian of the specifications, not a Programme Manager.  Unity of leadership
§ Decide Product & trade off between design/ Manufacturing/ Suppliers & Customer Support/ ILS so that product fulfils all requirements
§ Identify & remove Development roadblocks internal & partners/suppliers
§ Dev. schedule, product recurring costs, product reliability & op costs,

– Balance functional expertise & Programme integration

§ Programme Plateau (early concept phase & integration tasks) or Functional Plateau
(Detail design phase, cross programme optimization & learning, standardization, product/process skills)
–  Develop towering technical competence
§ Proactive hiring, early experience in other functions: Manufacturing, Customer and  Support/
§ Link to HR (Expert network, competence Mgt, specific technology dev. skills,  process)

–  Suppliers/Partners integration into Product Development

–  Build in learning & Continuous Improvement

§ Companys’ culture are mainly based on history & diff. functions (customer value,
multicultural…)

– Build a culture to support Excellence & Relentless Improvement

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Lean Engineering in Lean Six Sigma

– Manufacturing has a relatively small influence on the overall cost and quality of the product or service supplied.  Remember the Value Stream?
– When Lean principles are applied across all the functions in the value stream,   true competitive advantage can be gained. This is sometimes known as Lean Enterprise
– Lean Product Development demands an integrated multi-disciplined approach.

A Lean product development process typically has four phases:

    1. Concept  The Vision for the product produced by the programme lead   who is a technical expert  and is responsible for the product   from concept to market
    2. System design   Set based concurrent engineering looks for all possible    problems and tries to resolve them early in the process. ‘Sets’   of possible solutions are generated (diverge) then gradually   narrow as learning and understanding increases i.e. design   converges. Progressively reducing specifications and   resolving ambiguity actually shortens development time.   The system design team will be multi-functional and often   located together.
    3. Detailed design.
    4. Proto type & tooling.

 

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Lean Engineering

Manufacturing has a relatively small influence on the overall cost and quality of the product or service supplied.

Remember the Value Stream?

When Lean principles are applied across all the functions in the value stream, true competitive advantage can be gained.

This is sometimes known as Lean Enterprise Lean Product Development demands an integrated multi-disciplined approach.

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Lean Engineering in Lean Six Sigma

Lean Six Sigma challenges for Service and Product Development are

  • Short life cycles for service offerings, products and technologies
  • Integrated development and quality approach with suppliers
  • Customer expectations becoming more demanding
  • Technology (hard/software) becoming increasingly complex
  • Extremely high requirements for service and manufacturability
  • High impact of poor OTOQOC performance on confidence
  • High costs of development of complex services and products
  • High cost of post design changes, amendments & failures

Short life cycles for both products and technologies.

[Comment: This requires dynamic changes in product designs be managed at the sub-assembly level and coordinated across product lines to gain the most synergy for our development efforts.]

Customers have rising expectations for quality of total service [Comment: Customers don’t care if the problem is a handset or service provider.]

Increasing number of product development projects.

[Comment: Nokia has chosen to compete in all technology areas.  Since technology has not yet consolidated around one or two standards, we face the need to innovate and refresh all product lines on a regular basis.  Most of our competitors are not attempting this same approach.]

Products must be capable of manufacture in the millions.

[Comment: Mistakes cannot be made in production, right the first time is essential or we will not effectively compete in this business.]

Reliance on component parts quality from suppliers.

[Comment: We do not control our own destiny for quality but must seek exceptional partners who can contribute to our overall effort on behalf of our customers.]

Software is complex and interoperability is essential & interoperability is essential.

[Comment: Again, “right the first time” is the rule for software as well as hardware.  We also rely heavily on standards and industry partnerships to assure that we maintain seamless integration between hardware manufacturers and service providers.]

 

 

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Why does productivity matter?

Productivity growth plays an active role in offsetting inflationary pressure and as well as long tern economic growth. This is achieved through greater resource allocation and human resource efficiency, effectiveness and engagement; increased innovation and technology diffusion and capital investment.

Productivity is an essential component to the success and health of every company in Europe and the overall standard of living.

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