1. Acme Machell
Lean Assessment
March 2011

2. 2Lean – Six Sigma Project
Project Definition
PROBLEM DESCRIPTION:
Acme Machell is past due on product affecting Nuevo Laredo, Shangai & Matamoros KA plants,
Actually KA is expediting material having a Cost of Poor Quality of $____.
OBJECTIVE:
Reduce the Past due parts from 69.694 to 0, by April 2011 & give the Plant an assessment so they
may create an Action Plan to improve & sustain their processes.
SCOPE: Acme Machell & its suppliers for KA products
Define/Measure/Analyze/Improve/Control
CORE TEAM:
Alberto Martinez – K.A. Logistics Manager – Leader
Tom Cox – A.M. President
Louis Poggenburg – A.M. Lean 6σ Engineer, QA Manager
Glenn Litchford – A.M. VP- Operations
Alex Quezada – K.A. MBB/Lean 6σManager NA – Support
EXTENDED TEAM:
Jim Reder – K.A. Purchasing Director NA – Champion
Nicklas Berntsson – K.A. Purchase Director

3. 3Lean – Six Sigma Project
Pareto of Part Numbers and Days to recover
Days to recover 2.226 0.1178.052 6.566 6.086 5.663 5.255 4.276 3.707 2.484
Percent 5.0 0.318.1 14.8 13.7 12.7 11.8 9.6 8.3 5.6
Cum % 99.7 100.018.1 32.9 46.6 59.3 71.2 80.8 89.1 94.7
Part Number
O
th
er
'996T-S1030'
'092P-S7712'
'054J-S1732'
'073T-S7825'
'062T-S7754'
'076P-S7812'
'066P-S2807'
'006T-S1025'
'084P-S7811'
50
40
30
20
10
0
100
80
60
40
20
0
Daystorecover
Percent
Pareto Chart of Part Number
Define/Measure/Analyze/Improve/Control

4. 4Lean – Six Sigma Project
Current VSM O84P-S7811
Customer Demand:
27000 pieces per Month
(Takt Time 67.2 seconds)
KONGSBERG
MIXING
Total C/T = 2 seconds
Defect = 0%
1
INSPECTION
Total C/T = 12.2 seconds
Value Add: 0 seconds
NVA = 12.2 seconds
Defect = 12%
Distance Traveled: 12 ft.
1
Production
Planning
Preferred
Compund
Information
Information
Information
1008000
seconds
2 seconds
24864 seconds
11 seconds
16.6 seconds 65453 seconds 12.2 seconds Lead Time = 1098348 seconds
VA / T = 13 seconds
RM = 13.3 days
WIP = 24883 seconds
FG = 65465 seconds
15000 pcs
Information
MOLDING
Total C/T = 16.6 seconds
Value Add: 11 seconds
NVA = 5.6 seconds
Defect = 4%
C/O = 180 mins.
Uptime = 75%
Availability: 70%
1
370 pcs 974 pcs
Define/Measure/Analyze/Improve/Control
Current State (data from 03-09-11)
Work Balancing
2 s. 24.7 s. 13.9 s.
MIXING
MOLDING
INSPECTION
TaktTime 67.2s.

5. 5Lean – Six Sigma Project
VSM O84P-S7811
Define/Measure/Analyze/Improve/Control
Customer Demand:
27000 pieces per Month
(Takt Time 67.2 seconds)
KONGSBERG
MIXING
Total C/T = 2 seconds
Defect = 0%
1
INSPECTION
Total C/T = 12.2 seconds
Value Add: 0 seconds
NVA = 12.2 seconds
Defect = 12%
Distance Traveled: 12 ft.
1
Production
Planning
Preferred
Compund
Information
Information
Information
1008000
seconds
2 seconds
24864 seconds
11 seconds
16.6 seconds 65453 seconds 12.2 seconds Lead Time = 1098348 seconds
VA / T = 13 seconds
RM = 13.3 days
WIP = 24883 seconds
FG = 65465 seconds
15000 pcs
Information
MOLDING
Total C/T = 16.6 seconds
Value Add: 11 seconds
NVA = 5.6 seconds
Defect = 4%
C/O = 180 mins.
Uptime = 75%
Availability: 70%
1
370 pcs 974 pcs
Analytical
Batch Size
TPM
Set-up Reduction
Combine
Operations
FIFO
5S
Replenishment
Pull System
Visual
Management
Visualizing the Future State

6. 6Lean – Six Sigma Project
Customer Demand:
27000 pieces per Month
(Takt Time 72 seconds)
KONGSBERG
MIXING
Total C/T = 2 seconds
Defect = 0%
1
Production
Planning
Supplier
Information
Information
Information
8.89 days
2 seconds 11 seconds
15.2 seconds 7.11 days
11 seconds
Lead Time = 16 days
VA / T = 24 seconds
RM = 8.89 days
WIP = 576028 seconds
FG = 0 seconds
10000 pcs
InformationSupplier
8000 pcs
MOLDING &
INSPECTING
Total C/T = 15.2 seconds
Value Add: 11 seconds
NVA = 4.2 seconds
Defect = 4%
C/O = 90 mins.
Uptime = 75%
1
ASSEMBLY
Total C/T = 11 seconds
Defect = 0%
Uptime = 90%
Distance Traveled: 12 ft.
1
Information
Information
Proposed State O84P-S7811
Define/Measure/Analyze/Improve/Control
WorkBalancing
2s. 15.8s. 11s.
MIXING
MOLDING&IN...
ASSEMBLY
TaktTime 58.9s.
FIFO

7. 7Lean – Six Sigma Project
Actions & Benefits in Process Improvements
Kaizens To Do:
• Kan ban racks and cards at Assembly to create a signal to produce according to
demand and Re-order material.
• SMED (Change Over reduction) to reduce from 180 mins to 25 mins by having a
heating plate to pre-heat the tool after installation.
• TPM have the operators know basic adjustments and maintenance of the
machine.
• Reduce scrap by using only new material.
• Reduce Scrap by having a Proper machine maintenance, oil is leaking and may
hurt operator.
• Work instruction properly showed at machine
• Combine Inspection with the same press operator, reduce one person

8. 8Lean – Six Sigma Project
VSM 092P-S7712
Define/Measure/Analyze/Improve/Control
Current State (data from 03-09-11)
Customer Demand:
33000 pieces per Month
(Takt Time 55 seconds)
KONGSBERG
MIXING
Total C/T = 2 seconds
Defect = 0%
1
INSPECTION
Total C/T = 12.2 seconds
Value Add: 0 seconds
NVA = 12.2 seconds
Defect = 12%
Distance Traveled: 12 ft.
1
Production
Planning
Preferred
Compund
Information
Information
Information
824727
seconds
2 seconds
20343 seconds
11 seconds
15.2 seconds 53552 seconds 12.2 seconds Lead Time = 898652 seconds
VA / T = 13 seconds
RM = 10.9 days
WIP = 20360 seconds
FG = 53565 seconds
15000 pcs
Information
MOLDING
Total C/T = 15.2 seconds
Value Add: 11 seconds
NVA = 4.2 seconds
Defect = 4%
C/O = 180 mins.
Uptime = 75%
Availability: 70%
1
370 pcs 974 pcs
Work Balancing
2 s. 22.6 s. 13.9 s.
M
IXING
M
O
LDING
INSPECTIO
N
Takt Time 55 s.

9. 9Lean – Six Sigma Project
Customer Demand:
33000 pieces per Month
(Takt Time 55 seconds)
KONGSBERG
MIXING
Total C/T = 2 seconds
Defect = 0%
1
INSPECTION
Total C/T = 12.2 seconds
Value Add: 0 seconds
NVA = 12.2 seconds
Defect = 12%
Distance Traveled: 12 ft.
1
Production
Planning
Preferred
Compund
Information
Information
Information
824727
seconds
2 seconds
20343 seconds
11 seconds
15.2 seconds 53552 seconds 12.2 seconds Lead Time = 898652 seconds
VA / T = 13 seconds
RM = 10.9 days
WIP = 20360 seconds
FG = 53565 seconds
15000 pcs
Information
MOLDING
Total C/T = 15.2 seconds
Value Add: 11 seconds
NVA = 4.2 seconds
Defect = 4%
C/O = 180 mins.
Uptime = 75%
Availability: 70%
1
370 pcs 974 pcs
Analytical
Batch Size
TPM
Set-up Reduction
FIFO
5S
Replenishment
Pull System
Visual
Management
VSM 092P-S7712
Visualizing the Future State
Define/Measure/Analyze/Improve/Control
Work Balancing
2 s. 22.6 s. 13.9 s.
M
IXING
M
O
LDING
INSPECTIO
N
Takt Time 55 s.
Combine
Operations

10. 10Lean – Six Sigma Project
Customer Demand:
33000 pieces per Month
(Takt Time 55 seconds)
KONGSBERG
MIXING
Total C/T = 2 seconds
Defect = 0%
1
Production
Planning
Preferred
Compund
Information
Information
Information
274909
seconds
2 seconds 5 seconds
15.2 seconds Lead Time = 274926 seconds
VA / T = 7 seconds
RM = 3.64 days
WIP = 17.2 seconds
FG = 0 seconds
5000 pcs
MOLDING &
INSPECTING
Total C/T = 15.2 seconds
Value Add: 5 seconds
NVA = 0 seconds
Defect = 1%
C/O = 60 mins.
Uptime = 90%
Availability: 90%
1
Proposed State 092P-S7712
Define/Measure/Analyze/Improve/Control
FIFO
Work Balancing
2 s. 17.1 s.
MIXING
MOLDING&IN...
Takt Time 55 s.

11. 11Lean – Six Sigma Project
Actions & Benefits in Process Improvements
Kaizens To Do:
• SMED (Change Over reduction) to reduce from 240 mins to 45 mins by having a
heating plate to pre-heat the tool after installation.
• TPM have the operators know basic adjustments and maintenance of the
machine
• Reduce scrap by using only new material and add FIFO.
• Reduce Scrap by having a Proper machine maintenance.
• Work instruction properly showed at machine
• Set up parameters optimized
• Combine Inspection with the same press operator, reduce one person

12. 12Lean – Six Sigma Project
0
1
2
3
4
5
Level Schedule
Continuous Flow
Takt Time
Pull System
Abnormality Detection
Line Stop Call (Andon)
Problem Solving
Man/Machine Separation
Cell/Line Layout
Plant Design
Skill Building
Standard Operations
5S
Visual Management
TPM
Inventory Management
Management Style
Change Readiness
Customer focus
Continuous Improvement
9-Mar-11
Goal
Lean Assessment
Score 1.55

13. 13Lean – Six Sigma Project
Lean Assessment Comments
Production processes are isolated “islands” with considerable amounts of WIP
between operations (i.e., departmentalized). Products move through the
production line in batches resulting in long throughput times.
Production pace is not planned but assumed to be a fixed function of the current
equipment. Line operates and adds/cuts hours or inventory to match customer
demand.
Production flow is completely MRP based with no in-line control on operations or
production Pace. Material enters & is pushed downstream on forecast only.
Some fail-safes and process monitors are present, but team members are still
expected to prevent errors. Only a small group of people notice problems and
understand the status of the shop floor.
Team members can notify supervisor/team leader of problems, but cannot
consciously stop production. There is not an efficient process in place for team
members to signal a problem.
Majority of problems are only noticed by team members and result in quick
superficial “fixes” by maintenance technicians. Problems constantly reoccur and
result in low process efficiency (productivity or OEE).
Basic work procedures exist, but are not strictly followed and are not easily
accessible by team members.

14. 14Lean – Six Sigma Project
Lean Assessment Comments
No workplace organization on the shop floor. All areas are generally disorganized
and dirty. It is not clear what is needed and what is not needed.
Virtually no examples of visual management beyond basic forms, e.g., aisles
marked.
PM plans in place for some select pieces of equipment, but majority of
maintenance activity is for unplanned downtime. Only maintenance technicians
work on machines. Little information available on downtime/OEE.
Only isolated areas practice FIFO. Designated areas for inventory may exist, but it
is not clear because there are no labels and there is little discipline in place.
Problems are communicated to management, but response is slow and the status
always unclear.
There are no improvement activities involving team members and there is no
formal improvement organization.

15. 15Lean – Six Sigma Project
0
1
2
3
4
5
SORT
SET
SHINESTANDARDIZE
SUSTAIN
9-Mar-11
Goal
5’s Assessment
Score 1.55
Generally cluttered. Quite a few unnecessary items either on benches, desks, shelves or cabinets.
Some unneeded furniture and equipment. Items stored on floor.
Inadequate organization. Many key items have no designated location. Shelves and drawers are
poorly labeled. Aisles or equipment markings are not clear or straight. Very few visual controls or
instructions are evident. Safety equipment is not designated.
Area needs to be picked up. Items have not been cleaned in some time. Significant oil leakage.
Floor is dirty and/or waste containers are full.
There is no evidence that a 5S. Checklist exists for the area. PM log is not up to date. Metrics and
charts in the area are not current.
There is no system or commitment within the organization to sustaining 5S.

16. 16Lean – Six Sigma Project
Areas

17. 17Lean – Six Sigma Project
Next Steps:
Acme will develop an Action Plan to get out of backlog and
improvements moving forward to maintain Quality &
Delivery to KA – Tom Cox - TBD