Manufacturing Handbook of Best Practices An Innovation, Productivity, and Quality Focus © 2002 by CRC Press LLC Applying Manufacturing Execution Systems by Michael McClellan Back to Basics: Your Guide to Manufacturing Excellence by Steven A. Melnyk and R.T. “Chris” Christensen Enterprise Resources Planning and Beyond: Integrating Your Entire Organization by Gary A. Langenwalter ERP: Tools, Techniques, and Applications for Integrating the Supply Chain by Carol A. Ptak with Eli Schragenheim Integrated Learning for ERP Success: A Learning Requirements Planning Approach by Karl M. Kapp, with William F. Latham and Hester N. Ford-Latham Integral Logistics Management: Planning and Control of Comprehensive Business Processes by Paul Schönsleben Inventory Classification Innovation: Paving the Way for Electronic Commerce and Vendor Managed Inventory by Russell G. Broeckelmann Lean Manufacturing: Tools, Techniques, and How To Use Them by William M. Feld Macrologistics Management: A Catalyst for Organizational Change by Martin Stein and Frank Voehl Restructuring the Manufacturing Process: Applying the Matrix Method by Gideon Halevi Basics of Supply Chain Management by Lawrence D. Fredendall and Ed Hill Supply Chain Management: The Basics and Beyond by William C. Copacino Handbook of Supply Chain Management by Jim Ayers The St. Lucie Press/APICS Series on Resource Management Titles in the Series © 2002 by CRC Press LLC ST. LUCIE PRESS A CRC Press Company Boca Raton London New York Washington, D.C. Manufacturing Handbook of Best Practices An Innovation, Productivity, and Quality Focus Edited by Jack B. ReVelle, Ph.D. © 2002 by CRC Press LLC 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. 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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 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 SL3003 FMFrame Page 4 Wednesday, November 14, 2001 3:02 PM © 2002 by CRC Press LLC 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 SL3003 FMFrame Page 5 Wednesday, November 14, 2001 3:02 PM © 2002 by CRC Press LLC 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 SL3003 FMFrame Page 6 Wednesday, November 14, 2001 3:02 PM © 2002 by CRC Press LLC 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 SL3003 FMFrame Page 7 Wednesday, November 14, 2001 3:02 PM © 2002 by CRC Press LLC 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 SL3003 FMFrame Page 8 Wednesday, November 14, 2001 3:02 PM © 2002 by CRC Press LLC 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 SL3003 FMFrame Page 9 Wednesday, November 14, 2001 3:02 PM © 2002 by CRC Press LLC 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 SL3003 FMFrame Page 10 Wednesday, November 14, 2001 3:02 PM © 2002 by CRC Press LLC [...]... Analysis 203 9.1 Why Perform a Measurement System Analysis? 203 9.1.1 The Value of Measurement System Analysis 203 9.2 The Basics of Measurement System Analysis 205 9.2.1 Data and Your Measurement System … What’s It All About? 205 9.2.2 Properties of a Measurement System 206 9.2.3 Variable Data — Bias/Accuracy 207 9.2.4 Variable Data — Precision .208 9.2.5 Why There... .173 8.2 Elimination of Waste Principle 174 8.2.1 Definition of Waste 174 8.2.2 Waste of Overproduction 174 8.2.3 Waste of Inventory 174 8.2.4 Waste of Correction 175 8.2.5 Waste of Movement 176 8.2.6 Waste of Motion .176 8.2.7 Waste of Waiting 176 8.2.8 Waste of Overprocessing 176 8.2.9 Impact of Waste .177 8.3... overall management structures © 200 2 by CRC Press LLC SL3003 FMFrame Page 20 Wednesday, November 14, 200 1 3:02 PM • Lean manufacturing is an integrated collection of tools and techniques, traceable back to the Toyota production system, that focuses on the elimination of waste from the production process • Manufacturing controls integration brings together a collection of related systems such as enterprise... Founding Dean of the School of Business and Management at Chapman University in Orange, CA Currently, Dr ReVelle is a member of the Board of Directors, Arizona Governor’s Award for Quality (1999 200 0) Previously, he was a member of the Board of Examiners for the Malcolm Baldrige National Quality Award (1990 and 1993), a judge for the Arizona Governor’s Award for Quality (1994–1996), a member of the Awards... RIT — USA Today Quality Cup (1994 200 1) Following publication of his books, Quantitative Methods for Managerial Decisions (1978) and Safety Training Methods (1980, revised 1995), Dr ReVelle authored chapters for Handbook of Mechanical Engineering (1986, revised 1998), Production Handbook (1987), Handbook of Occupational Safety and Health (1987), and Quality Engineering Handbook (1991) His most recent... Theory of Constraints/Critical Chain TRIZ/Theory of Innovative Problem Solving (TIPS) © 200 2 by CRC Press LLC Product Operations Process Produce Support x x x x x x x x x x x x x x x x x x x x x x x SL3003 FMFrame Page 23 Wednesday, November 14, 200 1 3:02 PM Acknowledgments The team of authors, editor, and publisher that helped us to convert the original concept for a highly focused manufacturing handbook. .. Development and Business © 200 2 by CRC Press LLC SL3003 FMFrame Page 26 Wednesday, November 14, 200 1 3:02 PM Process Reengineering (1995) and The QFD Handbook (1998) Dr ReVelle led the development of two innovative, expert-system software packages, TQM ToolSchool™ (1995) and QFD/Pathway™ (1998) His latest text is What Your Quality Guru Never Told You (200 0) Dr ReVelle is a fellow of the American Society... to the rank of major and was awarded the Bronze Star Medal while stationed in the Republic of Vietnam as well as the Joint Services Commendation Medal for his work in quality assurance with the Nuclear Defense Agency Dr ReVelle was a Senior Vice President and Treasurer of the Institute of Industrial Engineers (IIE), Director of the Aerospace and Defense Division of the IIE, a Co-Chair of the Total... Division of the IIE, a Co-Chair of the Total Quality Management (TQM) Committee of the American Society for Quality (ASQ), and a member of the Board of Directors of the Association for Quality and Participation (AQP) Other professional memberships include the American Statistical Association (ASA) and the American Society of Safety Engineers (ASSE) Dr ReVelle’s national honor society memberships include... topic(s) of interest to you and begin your journey into the future of manufacturing TABLE 1 Topical Classification by Major Usage Design Topic Agile Enterprises Design for Manufacture & Assembly/Design for Six Sigma (DFMA/DFSS) Design of Experiments (DOE) Integrated Product and Process Development (IPPD) ISO 9000 :200 0 ISO 14000 Lean Manufacturing Manufacturing Controls Integration Measurement Systems Analysis . Number 200 1048504 Printed in the United States of America 1 2 3 4 5 6 7 8 9 0 Printed on acid-free paper Library of Congress Cataloging-in-Publication Data Manufacturing handbook of best practices. Manufacturing Handbook of Best Practices An Innovation, Productivity, and Quality Focus © 200 2 by CRC Press LLC Applying Manufacturing Execution Systems by. Definition of Waste 174 8.2.2 Waste of Overproduction 174 8.2.3 Waste of Inventory 174 8.2.4 Waste of Correction 175 8.2.5 Waste of Movement 176 8.2.6 Waste of Motion 176 8.2.7 Waste of Waiting