Manufacturing Handbook of Best Practices An Innovation, Productivity, and Quality Focus © 2002 by CRC Press LLC The St. Lucie Press/APICS Series on Resource Management Titles in the Series Applying Manufacturing Inventory Classification Execution Systems Innovation: Paving the Way by Michael McClellan for Electronic Commerce and Vendor Managed Inventory Back to Basics: by Russell G. Broeckelmann Your Guide to Manufacturing Excellence Lean Manufacturing: by Steven A. Melnyk Tools, Techniques, and R.T. “Chris” Christensen and How To Use Them by William M. Feld Enterprise Resources Planning and Beyond: Macrologistics Management: Integrating Your Entire A Catalyst for Organization Organizational Change by Gary A. Langenwalter by Martin Stein and Frank Voehl ERP: Tools, Techniques, and Applications for Restructuring the Integrating the Supply Chain Manufacturing Process: by Carol A. Ptak Applying the Matrix Method with Eli Schragenheim by Gideon Halevi Integrated Learning Basics of Supply Chain for ERP Success: Management A Learning Requirements by Lawrence D. Fredendall Planning Approach and Ed Hill by Karl M. Kapp, with William F. Latham Supply Chain Management: and Hester N. Ford-Latham The Basics and Beyond by William C. Copacino Integral Logistics Management: Planning and Control of Handbook of Comprehensive Business Processes Supply Chain Management by Paul Schönsleben by Jim Ayers © 2002 by CRC Press LLC Manufacturing Handbook of Best Practices An Innovation, Productivity, and Quality Focus Edited by Jack B. ReVelle, Ph.D. ST. LUCIE PRESS A CRC Press Company Boca Raton London New York Washington, D.C. © 2002 by CRC Press LLC SL3003 FMFrame Page 4 Wednesday, November 14, 2001 3:02 PM Library of Congress Cataloging-in-Publication Data Manufacturing handbook of best practices : an innovation, productivity, and quality focus / edited by Jack B. ReVelle p. cm. -- (St. Lucie Press/APICS series on resource management) Includes bibliographical references and index. ISBN 1-57444-300-3 1. Technological innovations--Management. 2. Product management. 3. Quality control. I. ReVelle, Jack B. II. Series. HD45 .M3295 2001 658.5--dc21 2001048504 This book contains information obtained from authentic and highly regarded sources. Reprinted material is quoted with permission, and sources are indicated. A wide variety of references are listed. Reasonable efforts have been made to publish reliable data and information, but the authors and the publisher cannot assume responsibility for the validity of all materials or for the consequences of their use. Neither this book nor any part may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, microfilming, and recording, or by any information storage or retrieval system, without prior permission in writing from the publisher. 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Visit the CRC Press Web site at www.crcpress.com © 2002 by CRC Press LLC St. Lucie Press is an imprint of CRC Press LLC No claim to original U.S. Government works International Standard Book Number 1-57444-300-3 Library of Congress Card Number 2001048504 Printed in the United States of America 1 2 3 4 5 6 7 8 9 0 Printed on acid-free paper © 2002 by CRC Press LLC SL3003 FMFrame Page 5 Wednesday, November 14, 2001 3:02 PM Table of Contents Chapter 1 The Agile Enterprise............................................................................1 1.1 Introduction......................................................................................................1 1.2 Traditional Manufacturing...............................................................................2 1.3 Evolution from Lean to Agile Enterprise........................................................3 1.4 Agile Enterprise Foundation............................................................................5 1.4.1 Customer Focus....................................................................................5 1.4.2 Strategy Deployment............................................................................6 1.4.3 Focus on Work.....................................................................................7 1.5 Agile Manufacturing........................................................................................8 1.5.1 Definition..............................................................................................8 1.5.2 Agile Manufacturing Challenges in the Automotive Industry............8 1.6 Agile Enterprise Guiding Principles................................................................9 1.6.1 Benefits of Being Agile.......................................................................9 1.6.2 What’s New or Different?..................................................................10 1.7 Agile Enterprise Tools and Metrics...............................................................10 1.7.1 Transaction Analyses.........................................................................10 1.7.2 Activity/Cost Chains..........................................................................11 1.7.3 Organization Maps.............................................................................11 1.7.4 Key Characteristics (KCs).................................................................11 1.7.5 Contact Chains...................................................................................11 1.8 Customer Orientation.....................................................................................12 1.9 Information System Design...........................................................................13 1.10 Cooperation through Virtual Teams and Corporations..................................14 1.11 Highly Educated and Trained Workforce......................................................15 1.11.1 The Rise of the Knowledge Worker..................................................17 1.12 Agile Enterprise and the Internet..................................................................17 1.12.1 Supply Chain Challenges...................................................................18 1.12.2 Growth and Value...............................................................................19 1.12.3 Impact of the Internet on Various Aspects of Agility.......................19 1.12.4 Customer Orientation — The Rise of CRM (Customer Relationship Management)..............................................20 1.12.4.1 What Will It Take to Keep the Customer in the Future?......................................................................21 1.12.4.2 A Value Chain Proposition.................................................21 1.12.4.2.1 Functional Requirements..................................22 1.12.4.2.2 Reaping Business Benefits from IT.................23 1.12.4.2.3 Setting the Stage for Success...........................24 © 2002 by CRC Press LLC SL3003 FMFrame Page 6 Wednesday, November 14, 2001 3:02 PM 1.12.5 The Future of the Agile Enterprise....................................................24 1.12.5.1 Idea-Centric Society...........................................................24 1.12.5.2 The Agile Enterprises of the Future Will Have Certain Defining Characteristics.........................................25 1.12.5.2.1 Management by Web........................................25 1.12.5.2.2 Information Management.................................25 1.12.5.2.3 Mass Customization.........................................25 1.12.5.3 Dependence on Intellectual Capital...................................26 1.12.5.4 Global..................................................................................26 1.12.5.5 Speed...................................................................................26 1.12.6 Flexible Facilities and Virtual Organizations....................................26 Chapter 2 Benefiting from Six Sigma Quality...................................................27 2.1 A Brief History of Quality and Six Sigma...................................................27 2.2 How Six Sigma Affects The Bottom Line....................................................31 2.3 Characteristics of a Six Sigma Organization................................................32 2.3.1 Customer Focus..................................................................................33 2.3.2 Everybody on the Same Page............................................................34 2.3.3 Extensive and Effective Data Usage..................................................34 2.3.4 Empowerment: Autonomy, Accountability, and Guidance...............35 2.3.5 Reward Systems that Support Objectives..........................................35 2.3.6 Relentless Improvement.....................................................................36 2.4 Departmental Roles and Responsibilities......................................................36 2.4.1 Top Management................................................................................37 2.4.2 Cost Accounting.................................................................................39 2.4.3 Information Technology.....................................................................39 2.4.4 Human Resources..............................................................................39 2.4.5 Factory Management..........................................................................40 2.4.6 Sales and Marketing...........................................................................40 2.4.7 Engineering and Design.....................................................................40 2.4.8 Quality................................................................................................41 2.4.9 Other Organizations...........................................................................41 2.5 Individual Roles and Responsibilities...........................................................41 2.5.1 Executive Staff...................................................................................41 2.5.2 Coordinator.........................................................................................43 2.5.3 Champions..........................................................................................43 2.5.4 Problem-Solving Practitioners, Experts, and Masters.......................43 2.5.5 Team Members and Supervisors........................................................44 2.6 Six Sigma Implementation Strategies............................................................44 2.6.1 Assess Current Situation....................................................................45 2.6.2 Establish Accountability and Communication..................................46 2.6.3 Identify and Sequence Tasks.............................................................46 2.6.4 Performance Metrics..........................................................................46 2.7 Conclusion......................................................................................................47 © 2002 by CRC Press LLC SL3003 FMFrame Page 7 Wednesday, November 14, 2001 3:02 PM Chapter 3 Design of Experiments.......................................................................49 3.1 Overview........................................................................................................49 3.2 Background....................................................................................................49 3.3 Glossary of Terms and Acronyms.................................................................50 3.4 Theory............................................................................................................51 3.5 Example Applications and Practical Tips......................................................52 3.5.1 Using Structured DOEs to Optimize Process-Setting Targets..........52 3.5.2 Using Structured DOEs to Establish Process Limits........................53 3.5.3 Using Structured DOEs to Guide New Design Features and Tolerances....................................................................................53 3.5.4 Planning for a DOE...........................................................................53 3.5.5 Executing the DOE Efficiently..........................................................56 3.5.6 Interpreting the DOE Results............................................................56 3.5.7 Types of Experiments........................................................................57 3.6 Before the Statistician Arrives.......................................................................61 3.7 Checklists for Industrial Experimentation.....................................................64 References................................................................................................................68 Chapter 4 DFMA/DFSS......................................................................................69 4.1 Design for Manufacture and Assembly (DFMA).........................................69 4.1.1 Simplicity...........................................................................................70 4.1.2 Use of Standard Materials Components and Designs.......................71 4.1.3 Specify Tolerances.............................................................................71 4.1.4 Use of Common Materials.................................................................72 4.1.5 Concurrent Engineering Collaboration..............................................72 4.2 Design for Six Sigma (DFSS).......................................................................73 4.2.1 Statistical Tolerance Analysis............................................................73 4.2.2 Process Mapping................................................................................73 4.2.3 Six Sigma Product Scorecard............................................................76 4.2.4 Design to Unit Production Cost (DTUPC).......................................82 4.2.5 Designed Experiments for Design Optimization..............................84 Chapter 5 Integrated Product and Process Development...................................87 5.1 Overview........................................................................................................87 5.2 Background....................................................................................................87 5.2.1 Design-Build-Test..............................................................................87 5.2.2 Teams Outperform Individuals..........................................................88 5.2.3 Types of Teams..................................................................................88 5.2.4 Fad of the Early 1990s.......................................................................88 5.2.5 DoD Directive 5000.2-R (Mandatory Procedures for Major Defense Acquisition Programs).........................................................89 5.2.5.1 Benefits of IPPD.................................................................89 5.2.5.2 Why IPPD Benefits Employees..........................................90 © 2002 by CRC Press LLC SL3003 FMFrame Page 8 Wednesday, November 14, 2001 3:02 PM 5.2.5.3 Why IPPD Benefits the Customer......................................90 5.2.5.4 Why IPPD Benefits an Organization.................................91 5.3 Organizing an IPT..........................................................................................91 5.3.1 Initial Challenges — What Are We Doing (Goals)? Why Change? How Are We Going to Do It (Roles)?......................91 5.3.1.1 Goals...................................................................................91 5.3.1.2 Why Change?......................................................................92 5.3.1.3 Roles...................................................................................92 5.3.2 Core Members (Generalists) vs. Specialists (Bit Players)................92 5.3.3 Collocation and Communication Links.............................................93 5.3.4 Team Culture......................................................................................93 5.3.5 Picking the Right Team Leader.........................................................94 5.4 Building the Environment (Culture) for Successful IPPD............................94 5.4.1 Effective Change Management..........................................................94 5.4.1.1 Fear and Jealousy of Change (from the Functional Manager’s View).................................................................95 5.4.1.2 Organizational Issues Created by Change.........................95 5.5 The Tools that an IPT Will Require..............................................................96 5.5.1 Technical Tools..................................................................................96 5.5.2 Communication and Decision-Making Tools....................................96 5.6 Probable Problem Areas, and Mitigations.....................................................96 5.6.1 Reduced Development Time = Less Time for Corrections and Customer Review and Feedback................................................96 5.6.1.1 Customer Inputs..................................................................97 5.6.1.2 Specification Errors............................................................97 5.6.2 “Silo” and “Group-Think” Mentality................................................97 5.6.3 Self-Sufficient vs. Too Large a Team................................................97 5.6.4 Recruiting — Internal (Why Were They Chosen?) vs. External......98 5.6.5 Retention and Career Paths Following Project Completion.............98 5.6.6 Costs Associated with IPTs...............................................................99 5.7 Methodologies of Simultaneous Product and Process Development.........100 5.7.1 Concept and Prototyping.................................................................100 5.7.2 Design and Development.................................................................100 5.7.2.1 CAD Databases.................................................................101 5.7.2.2 Codevelopment.................................................................101 5.7.2.3 Tooling (Molds and Dies)................................................101 5.7.2.4 Passive Assurance in Production......................................102 5.7.3 Qualification.....................................................................................102 5.7.3.1 Tooling Qualification........................................................102 5.7.3.2 Design Verification First...................................................103 5.7.3.3 Assembly Qualification = Product Qualification.............103 5.7.4 Conclusion........................................................................................104 5.8 Internet Sites................................................................................................104 References..............................................................................................................104 © 2002 by CRC Press LLC SL3003 FMFrame Page 9 Wednesday, November 14, 2001 3:02 PM Chapter 6 ISO 9001:2000 Initiatives................................................................107 6.1 Introduction..................................................................................................107 6.2 The Basic Changes.......................................................................................108 6.3 Quality Management System.......................................................................110 6.3.1 Quality Management System Audit Checklist Based on ISO 9001:2000 Clause 4............................................................113 6.4 Management Responsibility.........................................................................113 6.4.1 Management Responsibility Audit Checklist Based on ISO 9001:2000 Clause 5............................................................115 6.5 Resource Management.................................................................................115 6.5.1 Resources Management Audit Checklist Based on ISO 9001:2000 Clause 6............................................................115 6.6 Product Realization......................................................................................115 6.6.1 Product Realization Audit Checklist Based on ISO 9001:2000 Clause 7............................................................119 6.7 Measurement, Analysis, and Improvement.................................................119 6.7.1 Measurement Analysis and Improvement Audit Checklist Based on ISO 9001:2000 Clause 8.................................................121 6.8 Disclaimer....................................................................................................121 Appendices.............................................................................................................122 Chapter 7 ISO 14001 and Best Industrial Practices.........................................141 7.1 Introduction..................................................................................................141 7.2 Energy Use...................................................................................................142 7.2.1 Lighting............................................................................................142 7.2.1.1 Recommendations and Guidelines...................................142 7.2.2 Ventilation........................................................................................143 7.2.2.1 Recommendations and Guidelines...................................143 7.2.3 Electrical Equipment and Machinery..............................................144 7.2.3.1 Recommendations and Guidelines...................................144 7.2.3.1.1 Computers and Printers..................................144 7.2.3.1.2 Photocopy Machines......................................144 7.2.3.1.3 Stand-Alone Refrigerators and Freezers........145 7.2.3.1.4 Dishwashers....................................................145 7.2.3.1.5 Point-of-Use Water Heating...........................145 7.2.4 The Solar Option..............................................................................145 7.3. Other Environmental Impacts......................................................................145 7.3.1 Use of Water.....................................................................................146 7.3.1.1 Recommendations and Guidelines...................................146 7.3.1.1.1 Inside Buildings..............................................146 7.3.2 Boilers..............................................................................................148 7.3.2.1 Recommendations and Guidelines...................................148 7.3.2.1.1 Optimizers.......................................................148 © 2002 by CRC Press LLC SL3003 FMFrame Page 10 Wednesday, November 14, 2001 3:02 PM 7.3.3 Waste................................................................................................148 7.3.3.1 Recommendations and Guidelines...................................148 7.3.3.1.1 Permits............................................................148 7.3.3.1.2 Waste Reduction Initiatives............................149 7.3.3.1.3 Waste Water (See Also, Water Use)...............149 7.3.3.2 General..............................................................................150 7.3.4 Recycling..........................................................................................150 7.3.4.1 Recommendations.............................................................150 7.3.5 Ozone-Depleting Substances...........................................................152 7.3.5.1 Recommendations and Guidelines...................................152 7.3.5.1.1 Refrigeration and Air Conditioning...............153 7.3.5.1.2 Dry Cleaning..................................................153 7.3.5.1.3 Fire Protection Systems..................................154 7.3.6 Hazardous Substances......................................................................154 7.3.6.1 Recommendations and Guidelines...................................154 7.3.6.1.1 Acids...............................................................154 7.3.6.1.2 Alkalis.............................................................154 7.3.6.1.3 Bleach.............................................................154 7.3.6.1.4 Solvents...........................................................155 7.3.6.1.5 Phosphates......................................................155 7.3.7 Stationery and Office Supplies........................................................156 7.3.7.1 Recommendations and Guidelines...................................157 7.3.8 Office Equipment — Fixtures and Fittings.....................................157 7.3.8.1 Recommendations and Guidelines...................................157 7.3.9 Transport..........................................................................................158 7.3.9.1 Recommendations and Guidelines...................................158 7.3.9.1.1 Servicing.........................................................159 7.3.9.1.2 Training and Driving Style.............................159 7.3.9.1.3 Vehicle Use.....................................................159 7.3.10 External Influences...........................................................................160 7.3.10.1 Recommendations and Guidelines...................................160 7.3.11 Miscellaneous...................................................................................160 7.3.11.1 Recommendations and Guidelines...................................160 7.4 Environmental Management Initiatives.......................................................160 7.4.1 Energy Management Systems..........................................................160 7.4.1.1 Responsibility...................................................................160 7.4.1.2 Energy Audit.....................................................................161 7.4.1.3 Action Plan.......................................................................161 7.4.1.4 Involve Employees............................................................161 7.4.1.5 Finance..............................................................................162 7.4.1.6 Energy Monitoring............................................................162 7.4.1.7 Yardsticks..........................................................................162 7.4.1.8 Consumption Targets........................................................163 7.4.2 Access to Legislative Information...................................................163 7.4.2.1 Recommendations and Guidelines...................................163 © 2002 by CRC Press LLC
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