1. 1 -Quality Manufacturing- in the Chemical Process Industries CM4120 Chemical Plant Operations D. Caspary

2. 2 CM4120 Chemical Plant Operations Lab Introduction to Chemical Manufacturing CM4120 Course Description : A capstone laboratory course focused on chemical manufacturing processes from the perspective of manufacturing excellence. Lecture material includes quality management, the application of statistical process control, and current trends in quality manufacturing. Experimental reinforcement of these concepts occurs in the department's pilot plants.

3. 3 CM4120 Chemical Plant Operations Lab Introduction to Chemical Manufacturing Additional Professional Development : MTU Courses BA3600 Quality Management BA4620 Supply Chain Management ME4650 Quality Engineering ME5990 Design for Experiments – (JWS) MA2720 Statistical Methods MA3710 Engineering Statistics Many good web resources Carillon Technologies iSix Sigma W. Edwards Deming Institute

4. 4 CM4120 Chemical Plant Operations Lab Introduction to Chemical Manufacturing Entry-level titles of B.S. Chemical Engineers: Chemical Engineer Process Engineer Product Specialist Product Engineer Research Engineer Production Engineer

5. 5 CM4120 Chemical Plant Operations Lab Introduction to Chemical Manufacturing Petrochemical Energy Automotive Food Processing Agricultural Products Environmental Remediation Pharmaceutical / Health Care Consumer Products Pulp and Paper Coatings and Adhesives Intermediate Products Polymer Processing Semiconductor Industry Industries Served:

6. 6 CM4120 Chemical Plant Operations Lab Introduction to Chemical Manufacturing Primary Goal of Chemical Manufacturing? How does your company achieve that goal?

7. 7 CM4120 Chemical Plant Operations Lab Introduction to Chemical Manufacturing Corporate Survival Skills: Must provide service or product on a timely basis Manage multiple supplier relationships Sufficient quality, consistently Manage complex customer relationships Expand existing markets Develop new products Continuing education/professional development

8. 8 CM4120 Chemical Plant Operations Lab Introduction to Chemical Manufacturing Business Constraints Must maintain a level of profitability while complying with: Environmental laws Health and safety regulations Labor laws Tax laws International trade agreements Certifications or quality assurance standards Internal politics Moral and ethical standards

9. 9 CM4120 Chemical Plant Operations Lab Introduction to Chemical Manufacturing Major political events changed the business climate worldwide Breakup of Soviet Union Free and open trade in western Europe and a re- united Germany NAFTA Expanding markets and infrastructure development in India, China, S. Korea, other Pacific Rim countries Formation of the European Union and the creation of the Euro

10. 10 CM4120 Chemical Plant Operations Lab Introduction to Chemical Manufacturing What you did today isn’t good enough for tomorrow! Your company is driven to continuous improvement by your customers by your competitors

11. 11 CM4120 Chemical Plant Operations Lab Introduction to Chemical Manufacturing Ways to improve profitability increase throughput increase on-time order fulfillment improve stability of process improve quality reduce inventory – product and feedstocks reduce maintenance costs reduce labor costs reduce production costs reduce/eliminate environmental releases reduce energy costs reduce/eliminate off-spec product

12. 12 CM4120 Chemical Plant Operations Lab Introduction to Chemical Manufacturing All improvements fall into one of two categories: Improved processing and control thru Quality Management, or Increased profitability thru efficient Supply Chain Management

13. 13 CM4120 Chemical Plant Operations Lab Quality Manufacturing How is Quality defined? ISO9000: The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied need. Quality is always defined by the customer. Quality is what adds value to your raw materials.

14. 14 CM4120 Chemical Plant Operations Lab Quality Manufacturing Traditional thinking: Quality costs $ higher quality higher cost no gain Current practice: Un-quality costs $ must recognize and evaluate cost/ quality relationship

15. 15 CM4120 Chemical Plant Operations Lab Quality Manufacturing Costs related to quality, 4 primary categories Prevention costs Appraisal costs Internal failure costs External failure costs reference: Dr. Joseph Juran

16. 16 CM4120 Chemical Plant Operations Lab Quality Manufacturing What is Quality Management? Managing systems and processes for the elimination of errors. Creating an environment for continuous improvement.

17. 17 CM4120 Chemical Plant Operations Lab Quality Manufacturing Formula for a generic process: A+B=C where A=system contribution, B=human contribution, and C=desired (measurable) output manipulating A and B causes variation in C W. Edwards Deming – Variation is the enemy of quality manufacturing

18. 18 CM4120 Chemical Plant Operations Lab Quality Manufacturing Deming’s 14 Principles: Quality manufacturing means “elimination of errors” 1. Create constancy of purpose toward improvement and service, with the aim to become competitive and to stay in business, and to provide jobs. 2. Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change. 3. Cease dependence on inspection to achieve quality.

19. 19 CM4120 Chemical Plant Operations Lab Quality Manufacturing 4. End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust. 5. Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs. 6. Institute training on the job. 7. Institute leadership. 8. Drive out fear. see www.deming.org for morewww.deming.org

20. 20 CM4120 Chemical Plant Operations Lab Quality Manufacturing What is a Process? A logical sequence of tasks that repeatedly transform inputs into outputs. Inputs may be people, information, or material. Outputs may be products, services, or behaviors.

21. 21 CM4120 Chemical Plant Operations Lab Quality Manufacturing What is a System? Group of people and/or processes that are united with a common purpose. Have identifiable characteristics. Have measurable performance (quality) indicators.

22. 22 CM4120 Chemical Plant Operations Lab Quality Manufacturing What is Variation? Measurable change in the system output(s). Inherent to all processes or systems. 4 types of variation: Common cause – built into the system. Special cause – assignable to an event. Tampering – result from tampering. Structural – regular, systematic changes.

23. 23 CM4120 Chemical Plant Operations Lab Quality Management Tools What is Statistical Process Control? Application of statistical methods to separate common cause variation from other causes. Uses control charting to convert fluctuations in a measured characteristic into useful information. A tool commonly used in quality systems.

24. 24 CM4120 Chemical Plant Operations Lab Quality Management Tools Fishbone (Cause and Effect) Diagram Viscosity variation

25. 25 CM4120 Chemical Plant Operations Lab Quality Management Tools Pareto Chart Used to display the relative importance or frequency of problems or conditions A bar graph showing frequency of problem occurrence. Optionally, can have a “cumulative frequency” line and show percentage of total on bar graph.

26. 26 CM4120 Chemical Plant Operations Lab Quality Management Tools

27. 27 CM4120 Chemical Plant Operations Lab Quality Management Tools Deming Cycle

28. 28 CM4120 Chemical Plant Operations Lab Quality Management Tools Goal setting Helps us “maintain constancy of purpose” if we define our purpose and set appropriate goals. Goals must be attainable Goals must be measurable

29. 29 CM4120 Chemical Plant Operations Lab Introduction to Supply Chain Management What do we mean by the Supply Chain? Concerns the flow of material from procurement to delivery of finished products  purchasing  receiving  warehousing  processing  packaging  shipping

30. 30 CM4120 Chemical Plant Operations Lab Introduction to Supply Chain Management What do we mean by the Supply Chain? Concerns the flow of information through business processes  sourcing  planning  technology solutions  inventory management  sales, marketing, and advertising  order fulfillment  customer service

31. 31 CM4120 Chemical Plant Operations Lab Introduction to Supply Chain Management Why manage the supply chain? U.S. Chemical Industry is $400 billion/yr. in sales Better management of supply chain yields 7.5% of sales in savings for typical chemical manufacturer $30 billion/yr. potential savings

32. 32 CM4120 Chemical Plant Operations Lab Introduction to Supply Chain Management Where do gains come from? It is estimated that U.S. CPI has 80 days inventory Reduce inventory by 50% and save 30% of the value of inventory Estimated savings are $20 billion/yr.

33. 33 Where do gains come from? Typical cash-to-cash cycle time is 6 months Best-in-class implementations will reduce cash- to-cash cycle time to 30 days CM4120 Chemical Plant Operations Lab Introduction to Supply Chain Management

34. 34 CM4120 Chemical Plant Operations Lab Introduction to Supply Chain Management Where do gains come from? Automation of business processes Open communications w/ suppliers Open communications w/ customers

35. 35 CM4120 Chemical Plant Operations Lab Introduction to Supply Chain Management Advancements in computing technology enable improvements in business efficiency computing hardware and software technologies networked computer systems and WWW database systems

36. 36 CM4120 Chemical Plant Operations Lab Introduction to Supply Chain Management Enterprise management tools available SAP, i2, iBaan, others manages everything from order entry to invoice provides links to suppliers and customers Require that all relevant data at all levels of the business be available in real time

37. 37 CM4120 Chemical Plant Operations Lab Introduction to Supply Chain Management Information flow in a manufacturing environment : Originates at the field device or from an operator DCS or other control system and their operators Manufacturing Execution System (MES) and their operators Supply Chain (Enterprise) Management System and their operators

38. 38 CM4120 Chemical Plant Operations Lab Introduction to Supply Chain Management A quote from: The Germ Theory of Management Myron Tribus Director of the American Quality and Productivity Institute Copyright 1995-2000 by Deming Electronic Network – all rights reserved