Goodrich Continuous Improvement

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GoodrichContinuous Improvement

• This presentation is one of a standard training
  series produced by the Goodrich Continuous
  Improvement organization. The series has been
  prepared for use by Goodrich organizations in the
  training and continuing education of their
  personnel. Any use outside of the Goodrich
  Corporation is expressly prohibited without the
  permission of the Goodrich Continuous Improvement
  organization.

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Introduction to CI - Agenda

• History of Continuous Improvement
• What is Lean?
• What is Six Sigma?
• Combining Lean and Six Sigma
• Goodrich Approach to Continuous Improvement

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History of Continuous Improvement

• Craft production prevails until the late 1700s
• Skilled Worker Starts and finishes order
• Dedicated special tools/All manual operations
• Parts custom fit
• High Cost High Variety

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History of Continuous Improvement
After World War II and through the 1970s,
Taiichi Ohno developed and refined the Toyota
Production System, the foundation for Lean
manufacturing
Jim Womack and his colleagues at MIT bring
attention to the Toyota Production System through
their books, The Machine that Changed the World
and Lean Thinking
Henry Ford in 1915 introduces mass production in
its purest form with a moving assembly line
producing Model Ts.
1900 A.D.
2000 A.D.
W. Edwards Deming, a student of Shewharts,
lectured Japanese industrial companies on
statistical management methods in 1950, after
being frustrated in similar attempts in the U.S.
Mikel Harry Based on his experience at GM and
Motorola, he along with others, developed the Six
Sigma concepts, which have been developed and
expanded by companies such as GE, Allied Signal,
Lockheed Martin, and Boeing.
Walter A. Shewhart, an engineer at Bell Telephone
Laboratories, developed statistical tools to
determine when corrective actions should be
applied to processes, including the SPC control
chart in 1924
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Class Discussion Lean/Six Sigma

• Numerous companies today are applying Lean and/or
  Six Sigma. You may have had some exposure to
  these concepts. Lets list any words/ideas you
  associate with Lean and Six Sigma

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What is Lean?

• Based on the principles of the Toyota Production
  System, Lean, at its core, is about the
  systematic and continuous identification and
  elimination of waste
• Key Principles of Lean

Reference Executive Summary of Lean Thinking by
James P. Womack and Daniel T. Jones
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What is Lean?

• Lean involves multiple systems and methods
• Effective workplace organization and visual
  controls
• Improved machine layouts and multi-skilled
  workers
• Setup reduction
• One piece (or small lot) production
• Standard work to enable line balancing
• Kanban systems for Just-In-Time production
• Small group improvement activities (Lean Events)

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What is Lean?
Speed is a focus of Lean
All we are doing is looking at the time line
from the moment the customer gives us an order to
the point when we collect the cash. And we are
reducing that time line by removing the
non-value-added wastes.
- Taiichi Ohno
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Lean Example in the Factory
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Lean Example in the Office

• Lean Event Payment Request Process (Accounts
  Payable)
• Reduced process steps by 30
• Implemented 10 mistake-proofing ideas
• Applied visual controls
• To work area
• To user instructions for invoice submittals
• Improved productivity by 19
• Drove quality at the source

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What is Six Sigma (6s)?

• A structured approach for improving performance
• Emphasizes importance of customer critical
  processes
• Drives for perfection in those processes by
  reducing variation and eliminating defects
• Uses objective, fact-based analysis techniques

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What is Six Sigma (6s)?

• Sigma (s) is a statistical term that measures the
  variation in a given process and corresponds to
  parts per million defective (ppm)

2s308,537 ppm
3s66,807 ppm
4s6,210 ppm
5s233 ppm
6s3.4 ppm
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Why Six Sigma?
Why 99 is not good enough
3.8 Sigma (99 Good)
6 Sigma (99.99966 Good)
99 just wont cut it in todays world! Our
customers demand better!
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Six Sigma DMAIC

• Proven problem solving/project management
  methodology
• Mathematical tools for problem solving
• Advanced statistical techniques

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Six Sigma Example
Global Express Variable Frequency Generator Low
Saturation Volts (Vsat)

• Problem Definition Vsat production acceptance
  test failures threatening customer deliveries and
  production schedules at customer site.

Define

• Process Capability Analysis indicated a process
  that could become more capable.

Measure

• Fishbone diagram and other analysis tools
  identified poor control of glue viscosity used to
  assemble stator and rotor core packs as a key
  root cause.

Analyze

• More glue in a core pack means less iron which
  means less volts.
• Regression Analysis revealed the exact
  relationship between stator rotor weight and
  Vsat.

Improve
Control

• Understanding gained from Regression Analysis
  allowed controls to be imposed.
• As a result there have been no failures for Vsat.

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Combining Lean and Six Sigma
Think about any typical process
Six Sigma focuses primarily here
Value Added Activity
Lean focuses primarily here
Non Value Added Activity
Lead Time

• Lean ? predominant impact is on Process Speed

Lean and Six Sigma are complementary tools for
reducing cost and improving customer service
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Combining Lean and Six Sigma
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Toolbox Approach to CI

• Business problem defines mix of tools required
• Use whatever tool and improvement activity (Lean
  event or Six Sigma project) best suits the
  problem!

When uncertain which to use, let common sense
prevail select the approach that will work best
in the local environment and stick to the
fundamentals.
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CI History at Goodrich

• Legacy Goodrich
• Aerostructures adopted Lean in mid-1990s in
  response to business crisis
• Several other divisions followed independently
  or with assistance from Aerostructures
• All divisions have at least some exposure and
  experience with Lean some isolated use of Six
  Sigma
• Decentralized approach

• Former TRW Aeronautical Systems
• Evolution to Six Sigma in late 1990s
• Solid foundation of training across AS
• Centralized approach

• Overall, some pockets of significant success, but
  

higher customer expectations and tougher market
conditions require that we take best practices
and lessons learned and apply them consistently
across the Enterprise
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Leverage Value of Enterprise-Wide Processes
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GR Continuous Improvement Program

• Implement a single Goodrich-wide CI program that
  encompasses traditional Lean and Six Sigma tools
• Drawing on best practices from across Goodrich,
  this program will include
• Comprehensive CI Training
• Standard Materials
• Certification Process
• Management Review Process in SBUs
• Performance Measurement Reporting
• Common Assessment Tool For Measuring CI Progress

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Goodrich CI Program Elements

• CI Training Curriculum

CI Overview 8 Hrs
Leadership Overview 16 Hrs
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Goodrich CI Program Elements

• Certification
• Criteria established for standard training
  certifications
• Lean Practitioner, Lean Expert
• Six Sigma Green Belt, Black Belt
• Design Green Belt, Black Belt
• Management Review Process
• Each division/site to have a process and
  structure to oversee the execution of the local
  CI effort
• Local process and structure should encompass both
  Lean and Six Sigma

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Goodrich CI Program Elements

• Performance Measurement
• Key operational metrics to be implemented
• Probable selections
• Inventory Turns
• On-Time Delivery
• Cost of Quality
• Value Added Per Employee
• OSHA Safety Statistics
• Common Assessment Tool
• Provides Roadmap for improvement
• Measures progress along five stages of maturity

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Goodrich CI Program Elements
Enterprise Excellence Assessment

• Qualitative assessment of CI progress
• Five Stages of CI Maturity
• Seven Enablers
• Roadmap for Improvement

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Path to Enterprise Excellence
Stages of Maturity
Pursuit of Perfection
Value Chain Optimization
Enterprise Improvement
Localized Improvement
Foundations for Change
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