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Operator Training Slides
OPERATIONS
ChitaHPO 2015
Introduction to CHITA
CHITA combines operator Knowledge of the
processes with simple Process Improvement Tools
to create a powerful process improvement program.
Working +
Knowledge
Tools
Change
or
Add Value
Input
+ Resources =
Better
Processes
Output
Number of Injuries
Strain
Contusion
5
4
3
2
0
Laceration
Eye
Burn
Management doesnt
require box cutter training
Gloves are not provided
for employees
Employees not using
box cutters properly
Wood components
have sharp edges
Employee
Lacerations
Protective shields are
sometimes missing
ChitaHPO 2015
Bottle,
Cap,
Water.
Change
or
Add Value
Fill bottle,
with water,
Put on cap.
Output
Bottle of
Water.
ChitaHPO 2015
Queue
Process
Step
Decision
Yes
Output
Connector
No
ChitaHPO 2015
Input
Un-finished
Chair
Paint Chair
Output
Painted
Chair
To
Packaging
ChitaHPO 2015
Pass
Input
Un-finished
Chair
Inspect
Paint Coverage
Wait
Remove Chair
From Conveyor
Wipe Chair
With Tack Cloth
Set Chair On
Conveyor
Spray Paint
On Chair
Fail
Touch Up
Paint
Date Stamp
Under Seat
Input
Paint From
Drum
Input
Plastic
Bag
Cover Chair
With Plastic Bag
Output
Painted
Chair
To
Packaging
ChitaHPO 2015
Input
Change
or
Add Value
Output
Cycle Time
Throughput
Time
Throughput Increase.
Variability Reduce.
Inventory Reduce.
Cost Reduce.
Number of Injuries
2
1
0
2
1
3
2
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Number of Injuries
5
4
3
2
1
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Number of Injuries
7
6
5
4
3
2
1
0
Laceration
Strain
Contusion
Eye
Burn
ChitaHPO 2015
Employee
Lacerations
Protective shields are
sometimes missing
Corrective action:
Management set up box cutter training and require that employees are trained to use box cutters properly, before being allowed to use a box cutter.
ChitaHPO 2015
ChitaHPO 2015
diagram?
Who #1 has the greatest knowledge needed to
time?
Who #2 in management will ensure that the resources
ChitaHPO 2015
or
ChitaHPO 2015
Goal 97%
95%
90%
85%
80%
75%
70%
65%
60%
55%
50%
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
120
120
100
75
80
60
40
30
25
20
17
0
Missing Materials
Unacceptable
Quality
Incorrect
Paperwork
Machinery
Breakdown
Other
Management doesnt
require box cutter training
Gloves are not provided
for employees
Employees not using
box cutters properly
Wood components
have sharp edges
Employee
Lacerations
ChitaHPO 2015
Change
or
Add Value
Output
Cycle Time
ChitaHPO 2015
Processing time
Queue time
Setup time
Down time
Wait
STOP
STOP
ChitaHPO 2015
Input
Unfinished
Chair
Wait
Clean
Chair
Wait
Paint
Chair
Wait
Dry
Chairs
Throughput
10 chairs/hr.
ChitaHPO 2015
Page 37 Value-Adding
Creating features or services that our customers
want and will pay for.
Value-Adding processes:
Filling a clean bottle with clean water.
Delivering a case of bottled water to customer.
Non-Value-Adding activities:
ChitaHPO 2015
Decision
Yes
No
Install
Right
Handle
Wait
Install
Left
Handle
Install Left
& Right
Handles
ChitaHPO 2015
5 Min
5 Min
5 Min
Eliminate bottlenecks.
Conveyors to move inventory.
ChitaHPO 2015
ChitaHPO 2015
140
120
120
100
75
80
60
40
30
25
17
20
0
Missing Materials
Unacceptable
Quality
Incorrect
Paperwork
Machinery
Breakdown
Other
Management doesnt
require box cutter training
Employee
Lacerations
Decision
Yes
No
ChitaHPO 2015
Page 44 Throughput
The outputs generated per period of time.
Input
Change
or
Add Value
Output
Time
Throughput
ChitaHPO 2015
Page 44 Throughput
Can process Throughput keep up with customer
demand without overtime?
YES We do not need to increase throughput.
Focus resources on increasing sales by:
Increasing On-Time Performance.
Reducing Variability.
Reducing Cycle Time.
Reducing Costs.
NO We need to increase throughput.
ChitaHPO 2015
Input
Unfinished
Chair
Wait
Clean
Chair
Wait
Paint
Chair
Dry Chairs
Process Step
Queue Inventory
Backed Up 10 chairs/hr. Sometimes Idle
Throughput
10 chairs/hr.
ChitaHPO 2015
ChitaHPO 2015
Task Description
Cycle Time
How to
Minimize
New
Cycle Time
5 Seconds Conveyor
5 Seconds Conveyor
Switch on turntable
2 Seconds Footswitch
1 Second
4 Seconds
4 Seconds
9 Seconds
9 Seconds
7 Seconds
7 Seconds
8 Seconds
8 Seconds
1 Second
8 Seconds Conveyor
Value-Add
Non-Value-Add
30 Seconds
24 Seconds
32 Seconds
24 Seconds
6 Seconds
Minutes
Cycle Time Frequency Per Day
How to Minimize
New
New
Minutes
Cycle Time Frequency Per Day
5 Minutes 3/Day
0 Minutes 0/Day
5 Minutes 2/Day
1 Minute
2/Day
30 Minutes 3/Week
5 Minutes 3/Week
10 Minutes 2/Week
2 Minutes 2/Week
47
Seconds
2820
540
ChitaHPO 2015
4:00 PM
0:33
10:08 AM
10:13 AM
0:05
2:33 PM
2:39 PM
0:06
9:15 AM
11:25 AM
2:10
ChitaHPO 2015
Page 54 Variability
Process Consistency
Three types of Variability:
Input variability.
Process variability
Output variability
If the process and inputs are consistent,
the outputs should be consistent.
Why is it important that outputs be consistent?
ChitaHPO 2015
How to
Measure
How Often
16 oz bottle of water
Volume of water
16.1 oz
+/- 0.1
16.0 oz
16.2 oz
32 oz bottle of water
Volume of water
32.1 oz
+/- 0.1
32.0 oz
32.2 oz
16 oz bottle of water
Volume of water
16.1 oz
+/- 0.1
16.0 oz
16.2 oz
16 oz bottle of water
Volume of water
16.1 oz
+/- 0.1
16.0 oz
16.2 oz
Time
Product
Attribute
Measured
Actual
Quantity
Measurement Rejected
Cause of
Rejects
Downtime
Minutes
4/18/2013
15.9 oz
50
4/18/2013
32.3 oz
110
Plunger leak
4/18/2013
31.9 oz
27
ChitaHPO 2015
Diameter in Inches
1.015
1.010
UCL
1.005
1.000
Target
0.995
0.990
LCL
0.985
0.980
1
9 10 11 12 13 14 15 16 17 18 19 20
Like a run chart but with a Target, an Upper Control Limit (UCL)
and a Lower Control Limit (LCL).
Measurements within the UCL and LCL are acceptable.
Measurements outside the UCL and LCL are not acceptable.
Improve the process to bring the measurements consistently
closer to the target.
ChitaHPO 2015
Task Description
Instructions
Switch on turntable
ChitaHPO 2015
Page 64 Inventory
Four types of Inventory:
In-process inventory:
Having Value-Added
or
Waiting in a Queue.
Raw materials.
Finished goods.
Queue
Queue
ChitaHPO 2015
Bottleneck
Process
Step
Process
Step 2
ChitaHPO 2015
5 Min
5 Min
5 Min
Removing bottlenecks.
Issuing inventory to the process to match
the throughput of the bottleneck.
Install
Right
Handle
Wait
Install
Left
Handle
Install Left
& Right
Handles
ChitaHPO 2015
cost of shipping.
ChitaHPO 2015
ChitaHPO 2015
of shipping.
Page 72 Costs
Two types of Process Costs :
Variable or Direct Vary with output:
Direct labor
Raw materials
Supplies
Services
Overhead Costs Fixed in the short term:
Rent
Insurance
Maintenance
Depreciation
Some may be partly fixed and partly variable.
ChitaHPO 2015
Cost/
Unit
Units Produced
Cost
27,106
Labor
Materials
Hardware
Electricity
Solvents
Packaging
Freight
Hand Tools
Abrasives
Gloves
Brushes
$43,070
$32,026
$4,599
$4,205
$3,845
$3,706
$3,624
$3,281
$2,468
$1,407
$1,207
$1.59
$1.18
$0.17
$0.16
$0.14
$0.14
$0.13
$0.12
$0.09
$0.05
$0.04
$103,438
$3.82
ChitaHPO 2015
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
18,532 18,532 18,532 18,532 18,532 18,532 18,532 18,532 18,532 18,532 20,287 20,287
6,235
6,235
6,235
6,235
6,235
6,308
6,308
6,964
6,964
7,185
7,185
7,258
14,026 14,026 14,026 14,587 14,545 14,026 14,026 14,026 14,026 14,026 14,026 14,026
Worker's Comp Ins. 20,599 29,691 20,599 20,599 20,599 20,599 20,599 20,599 20,599 26,473 26,473 26,473
Outside Serv ices
175
270
937
1,611
918
1,667
2,637
351
1,277
561
Supplies
3,706
3,894
1,158
4,789
Utilities-Gas
1,006
984
1,043
Utilities-Electricity
6,335
6,248
Utilities-Water
174
Telephone
675
Total Ov erhead
169
277
324
1,227
440
2,455
165
1,181
3,873
356
3,185
2,924
2,734
2,740
3,799
1,023
4,508
2,867
863
694
534
463
408
576
765
894
972
6,354
6,446
6,844
7,088
7,459
7,807
8,784
7,201
6,104
5,901
190
201
171
176
215
226
231
217
173
169
160
675
550
550
550
575
575
575
575
700
700
700
74,100 80,745 69,986 75,660 72,839 72,908 73,377 72,216 74,349 77,583 84,219 80,227
ChitaHPO 2015
ChitaHPO 2015