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APICS is not responsible for statements or opinions expressed by individuals in its publications or at its meetings. The views expressed are solely those of the individual and are not necessarily endorsed by APICS. 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 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 8 th Habit – From Effectiveness to Greatness
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
What issues hinder our success?? Corrective Action & Help!!! Continuous Improvement from optimizing Effectiveness and Efficiencies?
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.
Kaoru Ishikawa Tools Support the processes How and when Methods = Results Simple = Effective Lean / ISO objectives Employee Involvement Continuous Improvement
The Meeting April ‘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”!
1. Initial Activities Member Selection Problem Definition Objectives Project Timeline
Assembling the Team Core Members Support Members Initiator Problem definition Goal Closure Beware!
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
Objective Ottawa 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 2 nd meeting. Goal to be developed after base data collected. Is this too Broad? - Veronica’s mandate
Communications and buy-in Project Management Methods, documentation & records Up to individual organizations What? Who? How? Results? Training & Competencies
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
Tally Sheet User Friendly!!! Defects – ‘000 Defect Wk 1Wk 2Wk 3Wk 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
3.Future Process / Goal Where 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.
Ottawa Baking Project Goal Reduce the 6-Week moving average of Defective Cookies by 30% in 180 days. 12,000 or less per week - Toledo 7,000 or less per week - Atlanta
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.
5M’s + E Sources 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
5 – Why’s Possible 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.
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
Corrective Action Matrix IssueActivity Leader Date Status 1. DoughReviewEng7-31Closed Temp 2. Oven Calibration &DB/BK9/30Closed TempsLocationMaint 3. TrayVerify andDB/BK9/30 Closed TypeStandardize 4. Set-upBaking andDB/BK9/30 Open PackagingMaint
6. Sustaining the Gains Standardization and Work Guidance Future Monitoring and Verification What, Who, When, “How” SPC – Control Charts Departmental audits
Standards (Specs - What) Clear image of desired conditions Make abnormalities obvious Simple and Visual Work Guidance (How) Robust - wide Dynamic - changing Input from users
Items Standardized Burned 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.
Control Chart Processing Capabilities Control LimitsVoice of Process Customer Specs Voice of Customer Common Cause vs. Special Cause Variation Reducing Common Cause Variation = Continuous Improvement Accuracy vs Precision
Additional Sources Lean Production Simplified Pascal Dennis Standards, Job Element Sheets, Hoshin Planning Productivity Press Understanding Statistical Process Control Donald J. Wheeler / David S. Chamberlain Control Charts & Interpretation SPC Press
Special Thanks AIC – Rita, Kathy, Sue, Margaret & Mike EMU – Dr Tucker, Veronica, Jim & Brian Owens CC – Students from QCT 110 / 231
We hope you enjoyed! Brian Koenig CPIM eibk @ aol.com Doug Brandt CPIM / CIRM Doug.Brandt @ aac-inc.com Session #: E – 09 Title: The Great Cookie Crisis Please return your completed session survey to the room monitor or the collection boxes near the exit APICS programs are noncommercial forums. Speakers have agreed to refrain from the use of brand names and specific product endorsement whenever possible. Speakers understand that the association’s podium cannot be used as a place for direct promotion of the presenter’s product, services, or for monetary self interest.