# Zack Guthrie

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• #112168

Zack Guthrie
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See advertising on this site – SBTI.

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#104405

Zack Guthrie
Member

Steve,
Question: how did you calculate Kanbans if you don’t know replenishment time? (time from trigger to stores and replenishment).  That is, how are you going to ensure that you don’t have a stock-out situation if you don’t know replenishment time?  (The Kanban lot size is never less than average daily demand multiplied by the replenishment time).
To answer your question, a very important metric is process lead-time improvements (to your internal/external customers) – since you are moving from push to pull (and smaller lot sizes) you should see improvements in lead-time.  You don’t need to calculate LT savings for each one – just look at your highest volume parts and, using the routing/process plan, and see how much time you’ve shaved off your processing time.
Another intangible measure is simplified scheduling.  Since you’ve already calculated ADD, etc. you have the system pre-stocked with appropriate levels of inventory; planners don’t have to ‘chase’ in-process materials, etc.
There are many variations in Kanban calculations, but here’s what I use:
ADD = Average daily demandR = Replenishment time in daysReplenishment Amount = ADD*RSafety Factor (SF) = (Highest demand – ADD)/ADD Total Qty = Replen. Amt + SF Stock# Kanbans = Total Qty / Container Size
Additionally, if you have ‘service level’ information from your suppliers it can also be included and replace SF.
Service Factor Factor Used 80% 0.8490% 1.2895% 1.6597% 1.9699% 2.33100% 3.08
Service Amount (SA) = service level factor * supply std. dev. (replaces SF if std. dev. Is available from supplier deliveries)# Kanbans lots = (ADD * R * (1+SF) + SA) / standard container qty
Hope that helps –  good luck!
Zack Guthrie

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#103327

Zack Guthrie
Member

https://www.isixsigma.com/forum/showmessage.asp?messageID=32939
Tom,

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#103324

Zack Guthrie
Member

NB,
Sounds like your teammate (that brings up VOE) isn’t one whom I’d go to for advice.  Sounds like this guy/gal is more concerned about protecting status quo than imlementing DFSS.
WORK AROUND HIM – HE’LL LIKELY ALWAYS BE ON THE FENCE.
Why would management introduce (or allow your involvement) DFSS if they didn’t want you to follow this methodology???
Most top execs are attempting to change status quo and they seek new enablers (people/tools) to get this done … not someone to regurgitate back to them perceived management expectations.
I’m (obviously) not suggesting you stray from the scope/expectations that have been set from management, but the VOC encourages distinctly different metrics than otherwise would be set – the reason VOC is valuable is that important metrics get lost in all of the business noise if it’s not a consideration; VOC is a good path to follow.
I would also take small issue with Rudolf’s comments about execs “should best know the business, intricacies of the market segment, existing and probable contractual obligations, competitive intelligence analysis, and hear first hand the ongoing voice of the customer … the management team … which should be heard.”
Several points: they get most of this information from teams like yours !!!  Secondly, his comments have little involvement with the ‘DV’ in DMADV.  Lastly, let the DATA distinguish between perceived and factual !
If your exec is worth his/her salt, they will see the value of the VOC and why it’s a critical element in SS.  That is, you’ll likely come up with conclusions that support other leadership inputs.
Get good data, do your homework, follow the methodology and provide the execs with valuable information that they wouldn’t otherwise have without your team.
Don’t worry … they’ll have plenty of chances to give you their (valuable) input!
Zack Guthrie
Did Dilbert come up with VOE?

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#103220

Zack Guthrie
Member

Jim,
Zack

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#103218

Zack Guthrie
Member

Albena,
Zack

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#102187

Zack Guthrie
Member

JBB,
Zack

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#102101

Zack Guthrie
Member

NATS,
Zack

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#102036

Zack Guthrie
Member

JBB,
Post an email address that you use and I’ll send a simplified version to you.
Zack
I’ll be out of pocket the rest of the day so if you post I’ll pick it up tonight/tomorrow.  FYI

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#102011

Zack Guthrie
Member

JBB –
When we graph OEE, it’s done as a pie chart with the following categories: OEE, minor stoppages, breakdowns, unplanned downtime, setup, and quality – not just one grouped percentage.  Thus, this is (6) different categories that we have mapped out (by %) which give us a good indication on where to the biggest opportunities lie.  Further, depending upon the application it may be appropriate to break these out further – obviously only so far as you can get good data.
Minor stoppages and setup may point to setup improvements (layout, tooling boards, SMED exercises, etc.); breakdowns may point to TPM,  or capital improvements, etc.; unplanned downtime may indicate scheduling issues; and quality alerts us to lost opportunities due to defects, for example.
Concluding, I do think it’s useful for someone in the trenches … especially when management enablers are required.  This OEE category breakout can at times be used to communicate ‘capability’ (using the word loosely).  If OEE is at 75%, it may be shown that to approach higher levels of effiency that capital expenditures are required (15% breakdowns, 5% other) and to focus elsewhere until they become available.
We are on the same page, I just didn’t want to tell BB that OEE was just another metric.
Zack Guthrie, P.E.
I agree with your RPN example.

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#101988

Zack Guthrie
Member

BB –
Can’t say I agree with JBB – it’s not a ‘decent’ measure, it’s a critical metric.  Further, the main reason OEE is calculated IS to determine where to improve.
The main question isn’t the value of the metric or improvement area identification; The primary concern of OEE, is can you get reliable data for your calculation?
If data collection exists on your equipment then you are well on your way to a very useful metric.  (You may have in-house resources to modify how the data is collected, you can refine this to fit your OEE calculation requirements.)  If, however, you have no data collection and have to rely on a stop-watch or mechanic’s reports of how long their setups have taken, etc. there is a lot of risk.  If no collection exists, you are better off staging a very good short-term system to get OEE snapshots than attempting to take OEE’s every day, for example, due to the number of inputs.  Only get the minimum number of OEE calc. points as necessary.  If management requires more, write a CAR and get data collection installed.
Below are calculations – just wanted to make sure the calculation you are using is comprehensive.
Zack Guthrie
AVAILABILITY % = PLANNED AVAILABILITY % X UPTIME %PERFORMANCE EFFICIENCY  %RATE OF QUALITY  %AVAILABILITY  X  PERFORMANCE EFFICIENCY  X  RATE OF QUALITY
FACTORS:
# OF SHIFTS=HOURS PER SHIFT=PLANNED DOWNTIMELUNCH (INCLUDE ALL AVAILABLE SHIFTS) SHIFT STARTUP MEETINGSTRAINING (CONDUCTED)NOT SCHEDULED TO RUNPLANNED MAINTENANCEOTHER UNAVAILABLE TIME (MEETINGS ETC.)SETUP TIME (Time exclusively used to prepare equipment for another paint)BREAKDOWNS (repair required)UNPLANNED DOWNTIME (waiting for work, or to restart)MINOR STOPS (cleaning accumulated material between setups, etc.)TIME TO PRODUCE DEFECTIVE PARTS  (SCRAPPED OR REWORKED IN AREA, MAY HAVE BEEN RETURNED BY LAB)

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#101946

Zack Guthrie
Member

Are you still looking?  Post if so, and I’ll reply.
Zack

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#101944

Zack Guthrie
Member

Pharma,
Determining ‘those few truly critical indicators’ isn’t going to be found in a book … or at another company.  I’m sure some others can give you good possibilities, but until the KPI is ‘internalized’ and bought-in by your team (or management) it probably won’t be accepted all that well.
I’d recommend performing a C&E matrix with key inputs down the first column correlated with the key outputs across the first row.  Key outputs is from the standpoint of the customer.
Then you can have a cross-functional team (important) of process owners, suppliers & customers determine the correlation of each input to each output (independently).  There’s a ranking algorithm to cross multiply, etc.
Bottom line – you get both critical inputs (sorting top to bottom) and key outputs (sorting left to right) and a good idea of what your KPI’s should be.
Also, if all else fails speak with the customers of the department … they usually point you in the right direction.
Hope this helps,
Zack
If you’d like a copy of a C&E post your internet email in response and I’ll send you one.

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#101943

Zack Guthrie
Member

Danno,
I’d recommend SBTI, San Marcos, Texas.  They are really good in both Six Sigma & Lean and offer combined courses as you’ve mentioned below.
Their website is http://www.6sbti.com.
Check their site out and if you call talk w/ Joe Costello.
Good luck,
Zack

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