Download as pdf or txt
Download as pdf or txt
You are on page 1of 188

COST REDUCTION & OPTIMISATION PROGRAMME (CROP)

#2 FY2023 SECRETARIAT ENGAGEMENT

25 OCTOBER 2023
COST REDUCTION & OPTIMISATION PROGRAMME (CROP)
#2 FY2023 SECRETARIAT ENGAGEMENT

25 OCTOBER 2023

FY2023 YTD CROP ACHIEVEMENT


Noor Fadhili Mohamad Fadhil
Systems & Methods
FY2023 YTD CROP Achievement

Promising number of initiatives & encouraging full year expected savings…

1,221 Registered
Initiatives
Expected Savings RM 91.52mil

976 Initiatives in
Realisation Stage
YTD Realised Savings RM 55.22mil RM 36.30mil (40%)

Substantial combined contribution towards realised savings


but rather modest adoption of Automation & Digitalisation…

Cost Automation &


Subsidisation Digitalisation

Savings
10% RM 5.43mil Contribution RM 0.93mil 2%
88% RM 48.86mil 12% RM 6.36mil No. of
4% 45 / 1,221 Initiatives 36 / 1,221 3%

No. of
43% 9 / 21 Companies 10 / 21 48%

Conventional CROP
FY2023 YTD CROP Achievement
Various theme-based initiatives by participating
companies clustered into few common activities…

COST SUBSIDISATION Process Enhancement - Application of Barcode


Manual to Automation AI Scanning

Recognition of income-generating activities to subsidise


portion of costs which are currently fixed Implementation of
Physical-to-Digital
Robotic Process
Migration - Server
Automation (RPA)
Rental of Space Disposal of Asset
/ Sublet / Material
Digital Form / Monitoring Installation of New
/ Report / Dashboard Software / System
Claims from Vendor Proceeds from
/ Customer Applicable Incentive Technology that reduce human intervention in a process and
adaptation of system, process, etc to be operated
with the use of computers and internet
Ancillary /
Sales of Scrap
Complementary Services
/ Products
/ Waste AUTOMATION & DIGITALISATION

…have we done these? Can we replicate them?


COST REDUCTION & OPTIMISATION PROGRAMME (CROP)
#2 FY2023 SECRETARIAT ENGAGEMENT

25 OCTOBER 2023

KAIZEN PORTAL
Motosikal Dan Enjin Nasional Sdn. Bhd.
MODENAS
KAIZEN PORTAL
Presenter: Mohd Yazid Abdul Gafar @ Ahmad

#2 CROP SECRETARIAT
ENGAGEMENT SESSION FY2023
Date: 25th October 2023 (Wednesday)
AGENDA 1. BACKGROUND

2. PROBLEM STATEMENT

3. COUNTERMEASURE / IMPROVEMENT

4. INTO THE ‘KAIZEN PORTAL’

5. BENEFITS

6. 5 YEARS “HMS” PLAN GOAL [2023 – 2027]


BACKGROUND
Go-Kaizen Presentations & Award
Ceremony was held twice a month and was
led by CEO itself, En. Roslan Roskan. The
program objective was to give recognition
to all Modenasian in contributing to
company saving program. As of September
2023, the program has been held 17 times
since January 2023. HMS department will
do the tracking on the achievement of all
department.

9
1. BACKGROUND

AGENDA 2. PROBLEM STATEMENT

3. COUNTERMEASURE / IMPROVEMENT

4. INTO THE ‘KAIZEN PORTAL’

5. BENEFITS

6. 5 YEARS “HMS” PLAN GOAL [2023 – 2027]


PROBLEM STATEMENT

No Remark

No computerized system. HMS manually compile the data in Excel.


1

Time consuming for HMS staff to update accumulate number of projects for each
2
user.

Employees contact HMS for details during yearly PMS (Performance Monitoring
3
System) evaluation.

HMS personnel manually update management team on the Kaizen's activity and cost
4
saving.

11
PROBLEM STATEMENT

No Remark

No computerized system. HMS manually compile the data in Excel.


1

Time consuming for HMS staff to update accumulate number of projects for
2
each user.

Employees contact HMS for details during yearly PMS (Performance Monitoring
3
System) evaluation.

HMS personnel manually update management team on the Kaizen's activity and cost
4
saving.

12
PROBLEM STATEMENT

No Remark

No computerized system. HMS manually compile the data in Excel.


1

Time consuming for HMS staff to update accumulate number of projects for each
2
user.

3 Employees contact HMS for details during yearly PMS (Performance Monitoring
System) evaluation.

HMS personnel manually update management team on the Kaizen's activity and cost
4
saving.

13
PROBLEM STATEMENT

No Remark

No computerized system. HMS manually compile the data in Excel.


1

Time consuming for HMS staff to update accumulate number of projects for each
2
user.

Employees contact HMS for details during yearly PMS (Performance Monitoring System)
3
evaluation.

HMS personnel manually update management team on the Kaizen's activity


4
and cost saving.

14
1. BACKGROUND

2. PROBLEM STATEMENT

AGENDA 3. COUNTERMEASURE / IMPROVEMENT

4. INTO THE ‘KAIZEN PORTAL’

5. BENEFITS

6. 5 YEARS “HMS” PLAN GOAL [2023 – 2027]


COUNTERMEASURE / IMPROVEMENT

1. Develop a web-based system named "Kaizen Portal". Web can be


access thru Employee Self-Service (ESSNet).

2. The portal holds the information of target and actual for each
employee.

3. The result also can be viewed by department as well as company.

16
COUNTERMEASURE / IMPROVEMENT

1. Develop a web-based system named "Kaizen Portal".

2. The portal holds the information of target and actual for each
employee.

3. The result also can be viewed by department as well as company.

17
COUNTERMEASURE / IMPROVEMENT

1. Develop a web-based system named "Kaizen Portal".

2. The portal holds the information of target and actual for each
employee.

3. The result also can be viewed by department as well as company.

18
1. BACKGROUND

2. PROBLEM STATEMENT

3. COUNTERMEASURE / IMPROVEMENT

AGENDA 4. INTO THE ‘KAIZEN PORTAL’

5. BENEFITS

6. 5 YEARS “HMS” PLAN GOAL [2023 – 2027]


INTO THE ‘KAIZEN PORTAL’

To get into Kaizen Portal, user must log


in thru MODENAS INTRANET 2.0

20
INTO THE ‘KAIZEN PORTAL’

The portal display Kaizen information


such as target and actual saving
(separate by soft saving, cost 2
avoidance and hard saving).

21
INTO THE ‘KAIZEN PORTAL’

3
The information can be viewed by
employee, date, department as well as
group.
2

22
INTO THE ‘KAIZEN PORTAL’

The achievement by departments are


more meaningful by introducing the
status by colour.

Actual Saving Can be print out


Kaizen
Submitted

23
INTO THE ‘KAIZEN PORTAL’
List of group
members

The details of registered kaizen by the


group can be view and downloaded
24
INTO THE ‘KAIZEN PORTAL’

Improvement type
1. Safety
2. Cost
3. Quality
4. Time
5. Delivery

List of employee and


details of kaizen which
include

25
1. BACKGROUND

2. PROBLEM STATEMENT

3. COUNTERMEASURE / IMPROVEMENT

4. INTO THE ‘KAIZEN PORTAL’

AGENDA 5. BENEFITS

6. 5 YEARS “HMS” PLAN GOAL [2023 – 2027]


BENEFITS

No Remark

Reduce time for HMS personnel to compile the data on kaizen activities.
1

Reduce time for HMS personnel as well as employees on the retrieving data
2
(during PMS, etc.).

3 The employees able to view the kaizen information by themselves.

The portal can be accessed anywhere (as long as has internet connection).
4

27
BENEFITS

No Remark

Reduce time for HMS personnel to compile the data on kaizen activities.
1

Reduce time for HMS personnel as well as employees on the retrieving


2
data (during PMS, etc.).

3 The employees able to view the kaizen information by themselves.

The portal can be accessed anywhere (as long as has internet connection).
4

28
BENEFITS

No Remark

Reduce time for HMS personnel to compile the data on kaizen activities.
1

Reduce time for HMS personnel as well as employees on the retrieving data
2
(during PMS, etc.).

3 The employees able to view the kaizen information by themselves.

The portal can be accessed anywhere (as long as has internet connection).
4

29
BENEFITS

No Remark

Reduce time for HMS personnel to compile the data on kaizen activities.
1

Reduce time for HMS personnel as well as employees on the retrieving data
2
(during PMS, etc.).

3 The employees able to view the kaizen information by themselves.

The portal can be accessed anywhere


4
(as long as has internet connection).

30
1. BACKGROUND

2. PROBLEM STATEMENT

3. COUNTERMEASURE / IMPROVEMENT

4. INTO THE ‘KAIZEN PORTAL’

5. BENEFITS

AGENDA 6. 5 YEARS “HMS” PLAN GOAL [2023 – 2027]


5 YEARS “HMS” PLAN TO ACHIEVE THE GOAL [2023 – 2027]
REV DATE/ NO: 16082023/ 04]

World Class Manufacturing

FY2023 FY2024 FY2025 FY2026 FY2027

•CROP [AMP •CROP [RM7.6mil •CROP [RM8.6mil •CROP [RM9.6mil •CROP [RM10.6mil
RM5.4mil] from 1.2% of COGS from 1.1% of COGS from 1.1% of COGS from 1.1% of COGS
•Lean six sigma projection} projection] projection] projection]
Green Belt •Lean six sigma •Lean six sigma •Lean six sigma •Lean six sigma
certification training Green Belt Green Belt & Black Green Belt & Black Green Belt & Black
[20 participants/group Certification [20 Belt Certifications Belt Certifications Belt [(20
@ 20%]. GM23 participants/ group @ [(20 participants/ [(20 participants/ participants/group @
agreed to defer next YTD 40%] . group @ YTD 60% ) group @ YTD 80%) YTD 100%) & (BB 4
year . •Factory 7S & (BB 4 people)] & (BB 4 people @ people @ YTD 12%)]
•Factory 6S Improvement Genba •Factory 7S YTD 8%)]. •Factory 7S
Improvement Genba [18 times a year] Improvement Genba •Factory 7S improvement Genba
[18 times a year] •Go-Kaizen & CROP [monthly] Improvement Genba [quarterly]
•Go-Kaizen & CROP activities [New •Go-Kaizen & CROP [monthly] •Go-Kaizen & CROP
activities [New Participation Rate: activities [New •Go-Kaizen & CROP activities [New
Participation Rate: x%] Participation Rate: activities [New Participation Rate:
x%] •Lean manufacturing x%] Participation Rate: x%]
•5s Visual cost savings •Lean manufacturing x%] •Lean manufacturing
management [RM0.8mil] cost savings •Lean manufacturing cost savings
[Develop work •5s auditor training [4 [RM1.6mil] cost savings [RM3.6mil]
standards & Audit people & in week 10] •5S workplace audit [RM2.65mil] •5S workplace audit
checklist] •5s workplace audit [quarterly] •5S workplace audit [Biannual]
•HMS Dojo. [quarterly] •Digital shopfloor [Biannual] •Digital shopfloor
•5s manuals boards [Block B & •Digital shopfloor boards [Main office &
[Launching in W13] Block C] boards [Block A and Canteen].
•Inhouse Convention •Inhouse Convention R&D] •Digitization yield.
[W41 of each year] [W41 of each year] •Inhouse Convention •Inhouse Convention
[W41 of each year] [W41 of each year]

32
THANK YOU
MOTOSIKAL DAN ENJIN NASIONAL SDN. BHD | www.modenas.my

MODENAS SDN. BHD EDARAN MODENAS SDN. BHD.


Kawasan Perindustrian Gurun, Level 2, EON Head Office Complex,
08300 Gurun, Kedah Darul Aman, No.2, Persiaran Kerjaya,
Malaysia. Taman Perindustrian Glenmarie,
Tel : 04-4668000 Seksyen U1, 41050 Shah Alam,
Fax : 04-4668300 Selangor Darul Ehsan Malaysia

33
COST REDUCTION & OPTIMISATION PROGRAMME (CROP)
#2 FY2023 SECRETARIAT ENGAGEMENT

25 OCTOBER 2023

IN-HOUSE CAPABILITY INITIATIVES


DRB-HICOM Defence Technologies Sdn. Bhd.
DRB-HICOM DEFENCE TECHNOLOGIES SDN BHD

IN-HOUSE CAPABILITIES INITIATIVES


COST REDUCTION &
OPTIMIZATION
PROGRAM
25 October 2023
TABLE OF CONTENT

1 2 3 4 5
INTRODUCTION OVERALL SUMMARY TOP 3 INITIATIVES MANPOWER CHALLENGES &
IN-HOUSE (PROJECT OPTIMIZATION OPTIMIZATION
CAPABIILTIES BACKGROUND, STRATEGIES &
REGISTERED IN CROP HOW WE DO IT, FACILITIES
& SUCCESS STORY)
CONTRIBUTION
TOWARD
COMPANY’S SAVINGS
1 2 3

OUR
BENEFITS

INTRODUCTION OBJECTIVE
CAPABILITIES Cost-effective

High quality
Capable in-house
control
To deliver MR AV8 repairs and
repair and maintenance.
Maintain
maintenance confidentiality and
within stipulated Equipped with
security.
time special facilities
and equipments.
Develop new skills
and expertise.
Certified staff with
experiences. More flexibility to
customize repair.
% from total CROP savings
OVERALL SUMMARY for that respective year
98.4%
IN-HOUSE CAPABILITIES 2021
RM1,113,470
CONTRIBUTION
2021-2023 AT A GLANCE TOWARDS
COMPANY’S
This dashboard is to provide a summary of in-house capabilities 73.6%
2022
SAVINGS
registered in CROP from year 2021 to 2023.
RM2,691,120
Total savings for
in-house capabilities
RM457,928
SUMMARY OF IN-HOUSE CAPABILITIES
2023
78.1%

RM1,119,722
12 12 22 900000

800000
856706 19
20
2023 SO FAR
700000 Major contributor to the
15 CROP savings for 2023 is
600000
13 from MR in-house repair.
500000
10
2021 2022 2023 400000
8 354020
Initiatives to resolve long lead time and high repair Initiatives to deliver 300000

cost by OEMs for critical AV8 warranty claims AV8 Maintenance 200000 222501 5 CROP
and Repair parts and 100000 No of Initiatives
3-Tonne GS Cargo to 62341
1
the user according to
0 0
Q1 2023 Q2 2023 Q3 2023 Q4 2023
contract obligation
OVERALL SUMMARY
IN-HOUSE CAPABILITIES 22
2023
1. ECU Suspension repair

12 12
2. ECU Lighting Powerpack repair
3. ECU Drivetrain repair
4. Driver Work Station (DWS) repair
5. Maintenance Repair Binnacle repair
2021 2022 6. Upgrade cabin to filing storage
7. 3TGSC towing hook modification
1. HF TRC 3700 repair 1. GID-3 Sieve Pack repair
8. 3TGSC spare tire bracket modification
2. ALA 172 repair 2. Driver Work Station (DWS) Display repair
9. 3TGSC lifting attachment special tool fabrication
3. VHF 9210 repair 3. Direction Lamp repair
10. 3TGSC sideboard support special tool fabrication
4. Main Weapon Controller (MWC) repair 4. GID-3 Motor Pump repair
11. Painting job for DEFTECH Shah Alam
5. Gun Drive Controller (GDC) repair 5. W44 Harness fabrication and repair
12. 3TGSC jigs to mark and allocate canopy hook on the
6. Gun Drive Unit (GDU) repair 6. Cotton rags fabrication
designed area special tool fabrication
7. Gunner Day Sight (GDS) repair 7. Wooden box for schedule waste fabrication
13. 3TGSC special tool to hold seat frame to desired
8. GID-3 Sieve Pack Refurbishment 8. Container for chemical spillage fabrication
measurement fabrication
9. Warranty Improvement Project: Local supply desiccant 9. Electrical and Pneumatic cage fabrication
14. 3TGSC fixture to clamp trailer coupler in milling table
and o’ring for Gunner Day Sight with LRF maintenance 10. KAIZEN fabrication
fabrication
10. Minor maintenance of air-conditioning in office at Batu 11. AV8 Digital painting
15. 3TGSC fixture to ease the installation of adapter
Berendam, Melaka 12. Motor vehicle basic servicing
bracket on bumper fabrication
11. Gutter repair
16. 3TGSC fixture to weld the kangaroo bar and legs
12. Periscope rework
fabrication
17. 3TGSC jig for marking the location of gussets
fabrication
18. 3TGSC jig to allocate tool box brackets fabrication
19. 3TGSC jig to allocate jerry can box bracket fabrication
20. 3TGSC lifter fixture to lift cargo body onto vehicle
fabrication
21. DAV utility room refurbishment
22. Safety Signage and Signboard fabrication
TOP 3 INITIATIVES
DRIVER WORKSTATION
Total Cost Savings: RM 156,486.00
Quantity: 3 units
% of cost reduction per unit: 81%

BINNACLE
Total Cost Savings: RM 105,252.00
Quantity: 2 units
% of cost reduction per unit: 78%

GID-3
Total Cost Savings: RM 26,020.00
Quantity: 2 units
% of cost reduction per unit: 50%
INITIAL INSPECTION
Inspect the electronic equipment to verify the
functional faulty at Army campsite.

DIAGNOSE AND TROUBLESHOOT


Diagnose and analyse the faulty equipment. Verify the faulty of
component or parts.

REPAIR AND SERVICE


IN-HOUSE REPAIR Repair and service the electronic equipment after
PROCESS troubleshoot and verify faulty component or
parts.

FUNCTIONAL TEST
Test the repaired electronic equipment by using
test bench and lab equipment.

VEHICLE TEST
Verify the functionality of electronic
equipment in Army vehicle at campsite.
DRIVER WORK STATION (DWS)

PROJECT GOAL PROJECT BACKGROUND

81
COST
To find cost-effective solution for ▪ Original Equipment Manufacturer (OEM) REDUCTION
electronic component repair AV-8 Driver
Work Station (DWS).
Lead Time: 8-12 weeks.
▪ Long repair period affecting customer %
delivery lead time.
▪ Based on OEM quotes, RM 64,156.28

HOW WE SOLVED IT? SUCCESS STORY

8
LEAD TIME
• Self-diagnose the DWS. ▪ In-house repair cost per unit: REDUCTION
• Utilize internal resources and expertise RM12,000.00
experienced staff with technical ▪ Savings per unit:
knowledge.
WEEKS
RM52,156.28
▪ Time taken to repair:
2-4 weeks
DRIVER WORK STATION (DWS)
IN-HOUSE REPAIR

FUNCTIONAL TEST DIAGNOSE AND REPAIR AND


Test functionality of Driver TROUBLESHOOT REPLACEMENT
Workstation in lab to determine Diagnose and troubleshoot the Repair and replacement of
the probable cause. Printed Circuit Board (PCB) and the faulty components in
wiring. PCB and wiring.
BINNACLE

PROJECT GOAL PROJECT BACKGROUND COST

84
REDUCTION
To find cost-effective solution for ▪ Original Equipment Manufacturer (OEM)
electronic
Binnacle.
component repair AV-8 Lead Time : 4 weeks.
▪ Long repair period affecting customer %
delivery lead time.
▪ Based on OEM quotes, RM67,626.00

HOW WE SOLVED IT? SUCCESS STORY


LEAD TIME

2
• Self-diagnose the Binnacle. ▪ In-house repair cost per unit: REDUCTION
• Utilize internal resources and expertise RM15,000.00
experienced staff with technical ▪ Savings per unit:
knowledge. RM52,626.00
WEEKS
▪ Time taken to repair:
1 -2 weeks
BINNACLE
IN-HOUSE REPAIR PROCESS

FUNCTIONAL TEST DIAGNOSE AND REPAIR AND


Test functionality of Binnacle TROUBLESHOOT REPLACEMENT
in lab to determine the Diagnose and troubleshoot the Repair and replacement of
probable cause. Printed Circuit Board (PCB) and the faulty component in
wiring. PCB and wiring.
GID-3

PROJECT GOAL PROJECT BACKGROUND


COST

50
To find cost-effective solution for ▪ Original Equipment Manufacturer (OEM) REDUCTION
electronic component repair AV-8 Lead Time: 8-24 weeks.
chemical detector GID-3. ▪ Long repair period affecting customer
delivery lead time.
%
▪ Based on OEM quotes, RM 26,010.00

HOW WE SOLVED IT? SUCCESS STORY LEAD TIME


• Self-diagnose the Chemical detector
GID-3.
• Utilize internal resources and expertise
experienced staff with technical
knowledge.
▪ In-house repair cost per unit:
RM13,000.00
▪ Savings per unit:
RM13,010.00
▪ Time taken to repair:
20 REDUCTION

WEEKS

1-4 weeks
GID-3
IN-HOUSE REPAIR PROCESS

MOTOR PUMP AREA ORIGINAL MOTOR FABRICATED MOTOR

Local purchase of
Original GID-3 motor from OEM
motor and fabricated
MANPOWER OPTIMIZATION
STRATEGIES & FACILITIES

ON JOB TRAINING TRANSFER OF SUSTAINABILITY OF


TECHNOLOGY (TOT) MANUAL / WORK
• Knowledge and expertise can INSTRUCTION &
be increased by consistent ● Test Bench Operation
EQUIPMENT’S
exposure to the operation of ● Licensing Agreement
AV-8 vehicle ● Maintaining and updating
● Collaboration with OEMs the manual or work
• Diagnose and Fault Findings instruction

• Troubleshooting ● Maintaining the


calibration of equipment’s
• Testing and Verification & software version
MANPOWER OPTIMIZATION
STRATEGIES & FACILITIES

CATHERINE XP
WORKSTATION
ROOM

• Engineered space that • A workplace area for


filters pollutants like technician to diagnose
dust, airborne microbes and repair electronic
and aerosol equipment.
• Prevents humidity.

TEST BENCH TIS TEST BENCH

• A bench for testing AV-8 • Test bench for testing


equipment. and calibrating Thermal
• E.g: Gunner Day Sight, Imaging Sight (TIS)
Thermal Imaging Sight, • Certified by OEM
Battle Management (THALES) for TIS repair.
System
CHALLENGES AND OPTIMIZATION

AVAILABILITY AND COMPLEXITY OF EQUIPMENT DIAGRAM


• Request OEM to provide higher level technical repair manual
• Request OEM to provide higher level of technical training on
the equipment

LIMITATION OF DATA, EQUIPMENT AND TECHNOLOGY


• Invest on latest technology

RESIGNATION OF SKILLED STAFF


• Talent retention program

MAINTAINING FACILITIES AND EQUIPMENT


• Apply systematic system such as tooling process to maintain
the tools and equipment

PROTECTED SOFTWARE
• Analyse the software
• Consider the acquisition of the licensed software
THANK YOU
COST REDUCTION & OPTIMISATION PROGRAMME (CROP)
#2 FY2023 SECRETARIAT ENGAGEMENT

25 OCTOBER 2023

PRICIPLE OF PROJECT MANAGEMENT


En. Mohammad Rizal Yaacob
Project Management Office
PRINCIPLE OF
PROJECT
MANAGEMENT
Date: 25th October 2023
AGENDA
ABOUT PROGRAM
MANAGEMENT
OFFICE (PMO)
Program Management Office (PMO)
➢ PMO sits in the Corporate Management Division (CMD)
➢ Corporate Management Division (CMD) established on 1 Aug 2018 consists of Corporate Performance
Department (CPD), System and Method Department (SMD) and Program Management Office (PMO)

Corporate Management

Program Management
Corporate Performance System and Method
Office

• Performance tracking • Focus on Subsidiaries’


Operational Excellence • Monitoring and tracking of
of Group Companies
and Mitigating Audit GSR initiatives & promote
via “A3 Dashboard”
Issues Project Management within
the Group

The three units work very closely in identifying issues and challenges as well as assisting the subsidiaries
in development of possible solutions to achieve the Annual Management Plan (AMP)
Quick facts on Program Management Office (PMO)

Jun Subsidiaries Monthly reporting to

2014 20+
across all sectors

established
participated in
project reporting GMC
More than 300 20+
3 current
manpower projects/ initiatives engaged
since establishment
PMO events
organised

Over the years, PMO has engaged in multiple projects with many different
subsidiaries across various sectors within DRB-HICOM
Key Roles of PMO

Strategy Success

Bridging the gap between


strategy and execution
Summary for GSR FY2023

Classification Monitoring

76 Monitoring & Tracking by PMO


Monthly
SIs

Initiatives
Submitted
92 16 Business Cases are monitored
by PMO on an update basis
Non-BAU Business
Initiatives Cases

Business as Tracked by respective Sector


usual Heads / HoC
LEARNING
OUTCOMES
Session’s Learning Outcomes

Describe a

Identify the elements that make for a


successful project
What is a Project?
What is a Project?
• Contains a well-defined objective
• Objective is defined in terms of scope,
schedule and cost – The Iron Triangle of
Project Management

Source: PMI
Project is carried out via a set of interdependent tasks called…

Work
-

Breakdown
Structure
(WBS)
Consists of:
• Activity List
• Work Packages
Source: PMI
Project

Uses various resources to carry out these


tasks
A project can create:
- product
- components of a product or service
- improvement of a product or service
- results such as outcome of document
Has a definite start date and an expected
end date.

Unique

Has stakeholders

Source: PMI
Projects are usually divided into phases

Collectively, these phases make up the


project life cycle
Phases of Project Life
Cycle Management

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5


Initiation Execution Monitor &
Planning Controlling
Closure

•Project •Lesson Learnt


Key Output

•Project •Forecasts •Activity Tracking


Charter Scope Document
•Project •Goal Tracking
•WBS •Project
Status •Budget Tracking
•Gantt Chart Closure
•Progress Report
Tracking
GOLDEN RULES
IN PROJECT
MANAGEMENT
How To Ensure Project Success?
How To Ensure Project Success?

FOLLOW THE GOLDEN RULE!


THE 12 GOLDEN RULES
The 12 Golden Rules

• Rule #1
– You shall gain consensus on
project outcome
The 12 Golden Rules

• Rule #2
– You shall build the best team
possible
The 12 Golden Rules

• Rule #3
– You shall develop a
comprehensive & viable
project management plan
The 12 Golden Rules

• Rule #4
– You shall determine how much
resources you really need to
get things done
The 12 Golden Rules

• Rule #5
– You shall have a realistic
schedule
The 12 Golden Rules

• Rule #6
– You won’t try to do more than
can be done
The 12 Golden Rules

• Rule #7
– You will remember that people
matter the most
The 12 Golden Rules

• Rule #8
– You will gain the formal and
ongoing support of all
stakeholders
The 12 Golden Rules

• Rule #9
– You must be willing to change
The 12 Golden Rules

• Rule #10
– You must keep others informed
of what you’re up to
The 12 Golden Rules

• Rule #11
– You must be willing to try new
things
The 12 Golden Rules

• Rule #12
– You must become a LEADER!
Session Summary
What is a Project?

A temporary endeavor
undertaken to create a
unique product, service or
result
Session Summary
Session Summary
Build
Get consensus on comprehensive Determine
project outcome project resources needed
management plan

Obtain support
Realistic Do not perform
from all
schedule/timeline “Gold Plating”
stakeholders

Always update the You must become


progress a LEADER!
Is this a Project?

Building a house
Is this a Project?

Renovating a house
Is this a Project?

Going to work daily


Is this a Project?

Planning a wedding
A. Initiation
QUESTION
B. Planning
What is the MOST
important phase in C. Execution
project management D. Monitor & Control
lifecycle? E. Closing
What are the 3 elements of Project Management’s
“Iron Triangle”?
S cope
____

T _ime
__ C ost
___
THANK YOU
rizal.yaacob@drb-hicom.com
COST REDUCTION & OPTIMISATION PROGRAMME (CROP)
#2 FY2023 SECRETARIAT ENGAGEMENT

25 OCTOBER 2023

LAUNCHING OF KNOWLEDGE CENTRE


Dato’ Jezilee Mohamad Ramli
Group Chief Operating Officer, Corporate Services
COST REDUCTION & OPTIMISATION PROGRAMME (CROP)
#2 FY2023 SECRETARIAT ENGAGEMENT

25 OCTOBER 2023

CROSS-FUNCTIONAL TEAM (CFT) PROGRAMME


PHN Industry Sdn. Bhd.
CrossFunctionalTeam

CFT
EON Auditorium
25th October 2023
Journey

Ir. Mohd Yuza Mohd Yusof MIEM P.Eng


CFT FOREWORD
History & Year of Introduction
Origin
Advocator
The Evolution ‘CFT2.0’
ABOUT CFT
Promotion of Best Practices in industry & Cost-Concious
among the workforce …
Top-Down oriented as opposed to Bottom-Up
● Innovation
● Creativity platform
● Continual Learning & Sharing avenue
● Multi-Disciplinary approach
● COST OPTIMISATION PROGRAMME
2022
10 6 2.1
CF T 2 CF T 4 CFT6 CF T 8 CF T 1 0
Recondition 100% Reduce rental Conversion of 3 40 minute Line balancing
of welding jigs in cost from RM manual assembly Turn around for 2 SAGA and 1
PHNSA1 with POKA 9mil to RM lines to 3PL trucking Myvi assembly
YOKE 6.3mil by Q4’22 Automation in Factory part
Process

CF T 1 CF T 3 CF T 5 CF T 7 CF T 9
Reduce 40% Rejection rate Reduce logistic cost Factory Space RM 44 Mil Flood
defect and rework reduction from 25% from RM 7.2mil to utilization in cost recovery in
for SAGA Rear to 5% for non-auto RM 5.0mil by production & PHNSA1 and SA2
Axle assembly business Q4’22 warehouse area
COMPONENT OF CFT
ORGANISATION CHART COORDINATION
Steering Liaison
Committee coordinator

TIMELINE PROJECT
Mentorship, Charter, Crews
Definitive Target Savings
schedule
REWARD &
TOLL GATE
Regular interval RECOGNITION
project review Appreciation
Support & Motivation
CFT ORGANOGRAM
THE MILESTONE
FEB MAY JUNE SEPT TOLL GATE REVIEW
TG TG TG TG WITH SCs

JAN ✓ ✓ ✓ ✓ ✓ ✓ ✓

✓ ✓ ✓ DEC
Group meeting With Finance With Mentor
SMALL GROUP ACTIVITY & DISCUSSION
TOLL GATE REVIEW MECHANICS
MONTHLY AFFAIR
Fix the schedule
01
02 05
REVIEW MODE
CHAIRED BY HEAD On-line / Physical
Supported by SCs

PRESENTATION DURATION
10 + 5 min 03 04 FINANCE VALIDAITION
Advisory on cost calcs.
THE WHEEL OF FORTUNE
PROJECT
PROBLEM STATEMENT
IMPACT
Specific project proposal with cost
optimization driven
What are the pertinent issue which lead to
leakages

TEAM
Improved
performance

Leader

HARD SAVINGS Member


1. Production
RM x Mil / Year 2. QC
3. Engineering

TIMELINE
4. Finance

FY 2023
PROBLEM SOLVING APPROACH
IMPLEMENTATION COST
Stage 1: Mechanics & Data collection
Stage 2: Data analysis
Stage 3: QC Tools
RM xx,000 (estimation) Stage 4: Trial & Monitoring
THE CFT STORY BOARD
TEAM
MEMBER
CFT From diverse
Department

PROJECT DATA
OWNER COLLECTION
The Leader Analysis &
Synthesis

SMALL GROUP
EVALUATION ACTIVITY
The Strategy Inter-Disciplinary
REWARD AND RECOGNITION

01 WINNER RM 20,000

02 1ST RUNNER UP RM 4,000

03 2ND RUNNER UP RM 3,000

04 CONSOLATION RM 2,000
2022 CFT ACHIEVEMENT & REWARDS
2023
15 12 7.6
CFT Mil Savings
Months
Project Target
CFT2 CFT4 CFT6 CFT8 CFT10 CFT12 CFT14 CFT16
Automation Cost down for Medical cost Maintenance Revenue from Consumable Reduce Reduce
P2/P6 line Purchased reduction by cost reduction apartment & purchased logistic cost reworked
Cost 4% by 2% condo reduction by 2 by RM84k parts
%

Knowledge, Comprehension, Application, Analysis, Synthesis And Evaluation

CFT1 CFT3 CFT5 CFT7 CFT9 CFT11 CFT13 CFT15 CFT17


Manpower Automation O/time Reduce Project cost Reduction of Energy savings Reduction of Retrieval of
reduction by P2 Fr Deck reduction by company rental reduction by finance RM350k/ raw material subcontracted
2% 15% cost by 2% 1% charges month stock holding dies

(14 + 3 ) CFT Projects driven by relative Cost Drivers


‘The future is NOW’

Reach me at:
myuza@drb-hicom.com
COST REDUCTION & OPTIMISATION PROGRAMME (CROP)
#2 FY2023 SECRETARIAT ENGAGEMENT

25 OCTOBER 2023

CTRM REWARDS MECHANISM


Composites Technology Research Malaysia Sdn. Bhd.
CROP
(COIN)
Reward
Mechanism
CTRM Aero Composites
Sdn. Bhd. (311703P)

25 October 2023

winning mindset, striving for new horizon


1. COIN Journey
2. Project process flow
3. MyKaizen process flow
4. COIN Reward process flow
5. COIN Reward financial endorsement
6. COIN Rewards - mechanism

winning mindset, striving for new horizon


COIN Journey – How we started…
Digitalisation
CCC Conference
Mar,22 June’22
COIN Reward
1st Team Rewarded 1st International Competition COIN Reward Validation Feb & Mar’21
Dec ‘16 ICQCC Manila using SOCI Data
Oct ‘17 Apr ‘19
1st 10K reward ArISE, MPC
Apr ‘18 Nov,21
Replication Project DRB-HICOM
Innovation Challenge
Champion
1st COIN
Appreciation
Dinner
May ‘17
8th COIN
Reward
Aug ‘19
100% Executives
Participation
637
personnel
COIN validation Q1 Q2 Q3 Q4 2022
Established using ERP Data
COIN May ‘18
Q1 Q2 Q3 Q4 2021 Embracing
Steering Q1 Q2 Q3 Q4
Digitalisation
Committee 2020 Horizontal
Replication
Q1 Q2 Q3 Q4 2019 Technology Advancement Digital
Q1 Q2 Q3 Q4 Renewable Energy Transformation
2018 ROADMAP
Process Innovation
2017 Energy Management
2016 Manpower Optimization
Process Automation Hard copy to System Integrity – single
Procurement Strategy Energy Efficiency paperless dependence - data source,
Process Improvement FY2023 conversion Systematic data prevent
Highlights storage, archiving duplications, real
time update
PROJECT PROCESS FLOW – Structured flow…
PROJECT
MAX 9
Members
TEAM
1. Financial Endorsement
2. SOCI Trend
Min 6 months
BREAKTHROUGH TEAM consistent data
PROJECTS
Monthly Saving Validation
REPLICATION PROJECTS (ERP/payroll/manual data) Project
Completion
JUST-DO-IT
PROJECTS
Project REWARD
Execution HARD SAVING
MGT ACCOUNT/ FINANCE Project Facilitation BREAKTHROUGH
Review & Review 0.7% X Annualize Nett Saving
TEAM REPLICATION
1. Team Formation 0.5% X Annualize Nett Saving
Proposal
2. Project Charter Approved SOFT SAVING
3. Financial Benefit Declaration WORKING COMM
Evaluate & HoDs 0.3% X Annualize Nett Saving
& Review OTHERS
[HMS]
Appreciation Event : RM25/pax
Project Proposal Process Improvement :
proposal Declined
WHY? • Vouchers RM25/pax

Not feasible
Not logical
Not practical
PROJECT PROCESS FLOW – Structured flow…

MGT ACCOUNT/ FINANCE


MY KAIZEN
MAX 3 TEAM Min 6 months
Members consistent data
1. Financial Endorsement*
2. SOCI Trend* Project
Approved REWARD
TEAM COIN HARD SAVING
BACK TO REPLICATION Monthly Saving Validation* Evaluate with Saving
STANDARD PROJECTS (ERP/payroll/manual data) BREAKTHROUGH
& Review 0.7% X Annualize Nett Saving
[HMS]
JUST-DO-IT Project REPLICATION
PROJECTS Approved 0.5% X Annualize Nett Saving
TEAM Project
1. Team Formation Completion My Kaizen SOFT SAVING
2. My Kaizen form Without Saving 0.3% X Annualize Nett Saving
[HMS]
Project OTHERS
Execution Appreciation Event RM50/pax
Saving <RM10K
Vouchers RM25/pax
BEFORE AFTER Project
proposal
Facilitation
& Review
[HMS, HoD]

5
COIN Reward – Process Flow…
Min 6 consecutive
months of positive results

Obtain Monthly Saving Financial Challenge


Process actual data project Database Reporting Endorsement session with Reward
tracking Steering CO.
• Component • Monthly • Dashboard • Reporting • Actual cost saving • Potential rewards • Cash
Issuance monitoring template • MAC & FAC list • Voucher
Data • Issue Unplanned template • Convention
• Receipt PO • Appreciation
Event

Frequency of payment - Quarterly

COIN Challenge Session


Objectives 1. Project saving insight
2. Financial impact endorsement (SOCI & BS)
3. On-tracked progress
4. Management support
5. Result validation
6. Rewards approval
COIN Reward – Financial Endorsement…
MANAGEMENT ACCOUNT (MAC) FINANCIAL ACCOUNTING & TREASURY (FAC)

1. Saving Initiative Category – Cost of Sales: 2. Saving Initiative Category - Process Efficiency & Cash Flow
a. Purchase and Consumption of Direct and Indirect Improvement:
Material a. Space Optimization
b. Labour Cost. e.g. OPE and Manpower Reduction b. Personnel. e.g. Tax, Insurance
c. General Overhead. e.g. Consumables, Utilities, Repair c. Project Base (3 valid quotations)
& Maintenance
d. Quality Initiative
e. OEE Machine Hours & Cycle Time Reduction
COIN Reward – Mechanism…
PLWS ELEMENTS INCENTIVES BASED ON REDUCTION IN WASTAGE INCENTIVES BASED ON COST & TIME SAVINGS PRODUCTIVITY INCENTIVES SCHEME

Small Group Activity (SGA) – Quality centered


TYPE OF INCENTIVES Cost Optimization Initiative (COIN) program reward scheme improvement
Project based appreciation – Big scale project
improvement
The company provide productivity incentives scheme
DESCRIPTION Rewards based on saving gain from continuous improvement project and appreciation event to celebrate employees
achievements and contributions

METHOD Continuous Improvement Project using variable method including, Small Group Activities, My Kaizen, Lean Sigma

PROCESS KPI Planning > Performance Evaluation System > Committee Review > Rewards Recognition Events > Periodical Review

• Hard Saving (Breakthrough project) – 0.7% from Total Saving Amount


• Hard Saving (Replication project) – 0.5% from Total Saving Amount Additional rewards on top of cash rewards
CRITERIA • Soft Saving – 0.3% from Total Saving Amount Involve >10 project team member
• Capping at RM10,000 Saving amount >RM1 mil
• Savings <RM10K
• Vouchers RM25/pax
Rewards 2016-2019: RM619K Appreciation Event e,g Lunch, High Tea
Recipients: 903 Teams RM50/pax

REWARDS

* if applicable
COIN Reward – Mechanism…
PLWS
ELEMENTS COST OPTIMIZATION INITIATIVE (COIN) PROGRAM

Reward Rating Simulation Based on Project Category and Saving Value COINReward
COIN RewardTrend
Trend

Cost Saving Reward 877K

Hard Saving Soft Saving Total Staff appreciation 801K


Saving Amount At Rate 0.7% At Rate 0.3%
RM1.27M
(min RM10,000) RM RM 690K
SIMULATION/EXAMPLE

10,000 70.00 30.00


100,000 700.00 300.00
300,000 2,100.00 900.00 468K
500,000 3,500.00 1,500.00
800,000 5,600.00 2,400.00
307K
1,000,000 7,000.00 3,000.00 253K
1,500,000 10,000.00 3,500.00 178K
More than
Max 10,000.00 Max 3,500.00
RM1,500,000 23K 58K

FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19 FY 20 FY 21 FY 22 FY 23

Cash Convention Appreciation Event


winning mindset, striving for new horizon

THANK
YOU
COST REDUCTION & OPTIMISATION PROGRAMME (CROP)
#2 FY2023 SECRETARIAT ENGAGEMENT

25 OCTOBER 2023

ROOT CAUSE ANALYSIS (RCA) WITH MINITAB STATISTICAL APPLICATIONS


En. Ishak Mohd Noor
Manufacturing & Engineering
Root Cause Analysis (RCA) with
Minitab Statistical Applications
Wednesday, 25 October 2023,
@EON Auditorium
Contents

❖ Minitab Overview
❖ RCA - Problem Solving Tools:
❖ Histogram >> Boxplot
Agenda
❖ Control Chart >> I-MR Chart
❖ Scatter Plot >> Correlation
❖ Regression Analysis
❖ Pareto
Minitab

3
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Some organizations using Minitab

4
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Minitab Interface

5
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
RCA or Problem Solving Tools

6
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Histogram --> Boxplot
(Continuous Data)
Histogram
Purpose?
Histograms are visual
representations to show data
spread using frequency
distribution of the data sets.

8
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Histogram vs Boxplot

9
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Histogram / Boxplot
EXAMPLE 1:
A quality engineer wants to compare pistons from two suppliers. The engineer measures the lengths of
a random sample of 100 pistons from each of the suppliers. The engineer creates a histogram with fit
and groups to compare the distributions of the sample data.

10
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Histogram on separate graph

11
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Histogram – Overlaid on same graph

▪ Comparison between 2
data sets are clearly
shown using Minitab

▪ Items to compare:
▪ Data spread
▪ Range
▪ Center

12
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Similarly using Boxplot

13
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Boxplot
EXAMPLE 2:
A quality paint shop engineer wants to monitor the rate of 3 main defects to show before, during
improvement and after. The engineer collects the defect data from Jun-22 to Dec-22 (before), Jan-23 to
May-23 (during improvement) and result for Jun-23 (after). The paint shop dept target defect rate is 5%.

14
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Boxplot

15
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Control Chart
(Continuous Data)
What is Control Chart?
A control chart indicates when your Points that fall randomly within the
process is out of control and helps control limits indicate that your
you identify the presence of special- process is in control and exhibits only
cause variation. When special-cause common-cause variation. Points that
variation is present, your process is fall outside the control limits or
not stable and corrective action is display a nonrandom pattern,
necessary. indicate that your process is out of
control and that special-cause
Control charts are graphs that plot variation is present (8 Tests to
your process data in time-ordered identify special causes).
sequence. Most control charts include
a center line, an upper control limit,
and a lower control limit. The center When to use a Control Chart :-
line represents the process mean. ▪ Demonstrate whether your process is stable and consistent over time. A stable
The control limits represent the process is one that includes only common-cause variation and does not have any
process variation. By default, the out-of-control points.
control limits are drawn at distances ▪ Assess the effectiveness of a process change. With control charts, it is easy to
of 3σ above and below the center compare shifts in the process mean and changes in the process variation.
line. ▪ Communicate the performance of your process during a specific period of time.

17
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Tests 1-8 : Available for Continuous
8 Tests for Special Causes Tests 1-4 : Available for Discreet
Test 1: One point more than 3σ from center line
Test 1 identifies subgroups that are unusual compared Test 5: Two out of three points more than 2σ from the
to other subgroups. Test 1 is universally recognized as center line (same side)
necessary for detecting out-of-control situations. If Test 5 detects small shifts in the process.
small shifts in the process are of interest, you can use
Test 2 to supplement Test 1 in order to create a control
chart that has greater sensitivity.

Test 2: Nine points in a row on the same side of the Test 6: Four out of five points more than 1σ from
center line center line (same side)
Test 2 identifies shifts in the process centering or Test 6 detects small shifts in the process.
variation. If small shifts in the process are of interest,
you can use Test 2 to supplement Test 1 in order to
create a control chart that has greater sensitivity. Test 7: Fifteen points in a row within 1σ of center line
(either side)
Test 7 detects a pattern of variation that is sometimes
Test 3: Six points in a row, all increasing or all mistaken as evidence of good control. This test detects
decreasing control limits that are too wide. Control limits that are
Test 3 detects trends. This test looks for a long series of too wide are often caused by stratified data, which
consecutive points that consistently increase in value or occur when a systematic source of variation is present
decrease in value. within each subgroup.
Test 4: Fourteen points in a row, alternating up and
down Test 8: Eight points in a row more than 1σ from center
Test 4 detects systematic variation. You want the line (either side)
pattern of variation in a process to be random, but a Test 8 detects a mixture pattern. In a mixture pattern,
point that fails Test 4 might indicate that the pattern of the points tend to fall away from the center line and
variation is predictable. instead fall near the control limits.

18
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Types of Control Chart

19
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Control Chart : I-MR
EXAMPLE 3:

20
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
I-MR (Individual - Moving Range Chart Example)
INTERPRET THE RESULTS

From the I-MR Chart:-

TEST 1: Both I-Chart & MR Chart


One point more than 3.00 standard
deviations from center line.
Test Failed at points: 7

Investigate point that failed the test


for special causes.

Vaccine is not stable.

Note: Out-of-control points can


influence the estimates of process
parameters and prevent control
limits from truly representing your
process. Investigate these points and
take necessary actions to reduce the
variation.

21
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Scatter Plot & Correlation Analysis
(Continuous Data)
Scatter Plot
Purpose? To study the association or relationship or correlation between 2 variables

SCATTER
Strong Positive Moderate Positive
PLOT Correlation Correlation
No Correlation

PATERNS

Moderate Negative Strong Negative Curvilinear


Correlation Correlation relationship

23
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Scatter Plot & Correlation
EXAMPLE 4:
A materials engineer at a furniture manufacturing site wants to assess the stiffness of the particle
board that the manufacturer uses.

The engineer measures the stiffness and the density and temp of a sample of particle board pieces.

24
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Scatter Plot

25
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Correlation

Pairwise Pearson Correlations Pairwise Pearson Correlations

Sample 1 Sample 2 N Correlation 95% CI for ρ P-Value Sample 1 Sample 2 N Correlation 95% CI for ρ P-Value

Stiffness Density 29 0.919 (0.833, 0.962) 0.000 Temp Stiffness 29 -0.004 (-0.370, 0.363) 0.984

26
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Correlation

Pairwise Pearson Correlations

Sample 1 Sample 2 N Correlation 95% CI for ρ P-Val


Temp Stiffness 29 -0.004 (-0.370, 0.363) 0.98
Density Stiffness 29 0.919 (0.833, 0.962) 0.00
Density Temp 29 -0.082 (-0.435, 0.293) 0.673

27
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
RCA Tools Set

2
Control Chart
(Statistical Process Control - SPC)
What is Control Chart?
A control chart indicates when your Points that fall randomly within the
process is out of control and helps control limits indicate that your
you identify the presence of special- process is in control and exhibits only
cause variation. When special-cause common-cause variation. Points that
variation is present, your process is fall outside the control limits or
not stable and corrective action is display a nonrandom pattern,
necessary. indicate that your process is out of
control and that special-cause
Control charts are graphs that plot variation is present (8 Tests to
your process data in time-ordered identify special causes).
sequence. Most control charts include
a center line, an upper control limit,
and a lower control limit. The center When to use a Control Chart :-
line represents the process mean. ▪ Demonstrate whether your process is stable and consistent over time. A stable
The control limits represent the process is one that includes only common-cause variation and does not have any
process variation. By default, the out-of-control points.
control limits are drawn at distances ▪ Assess the effectiveness of a process change. With control charts, it is easy to
of 3σ above and below the center compare shifts in the process mean and changes in the process variation.
line. ▪ Communicate the performance of your process during a specific period of time.

29
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
8 Tests for Special Causes Tests 1-8 : Available for Continuous
Tests 1-4 : Available for Discreet
Test 1: One point more than 3σ from center line
Test 1 identifies subgroups that are unusual compared Test 5: Two out of three points more than 2σ from the
to other subgroups. Test 1 is universally recognized as center line (same side)
necessary for detecting out-of-control situations. If Test 5 detects small shifts in the process.
small shifts in the process are of interest, you can use
Test 2 to supplement Test 1 in order to create a control
chart that has greater sensitivity.

Test 2: Nine points in a row on the same side of the Test 6: Four out of five points more than 1σ from
center line center line (same side)
Test 2 identifies shifts in the process centering or Test 6 detects small shifts in the process.
variation. If small shifts in the process are of interest,
you can use Test 2 to supplement Test 1 in order to
create a control chart that has greater sensitivity. Test 7: Fifteen points in a row within 1σ of center line
(either side)
Test 7 detects a pattern of variation that is sometimes
Test 3: Six points in a row, all increasing or all mistaken as evidence of good control. This test detects
decreasing control limits that are too wide. Control limits that are
Test 3 detects trends. This test looks for a long series of too wide are often caused by stratified data, which
consecutive points that consistently increase in value or occur when a systematic source of variation is present
decrease in value. within each subgroup.
Test 4: Fourteen points in a row, alternating up and
down Test 8: Eight points in a row more than 1σ from center
Test 4 detects systematic variation. You want the line (either side)
pattern of variation in a process to be random, but a Test 8 detects a mixture pattern. In a mixture pattern,
point that fails Test 4 might indicate that the pattern of the points tend to fall away from the center line and
variation is predictable. instead fall near the control limits.

30
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Control Chart (Continuous or Discreet Data)
(Continued on 8 Tests) :-
Apply certain tests based on your knowledge of the
process. If it is likely that your data might contain
particular patterns, you can look for them by
choosing the appropriate test. Adding more tests
makes the chart more sensitive, but may also
increase the chance of getting a false signal. When
you use several tests together, the chance of
obtaining a signal for lack-of-control increases.

If you are not sure which tests to apply in your


specific situation, you might try using Tests 1 & 2.
▪ Test 1 (a point outside the control limits) detects
a single out-of-control point.
▪ Test 2 (9 points in a row on one side of the
center line) detects a possible shift in the
process.

Add Test 7 if you want first to establish the control


limits based on your data. After the control limits
are established, you should use the known values of
those limits and Test 7 is no longer needed.

31
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
RCA Tools Set

2
Control Chart (Continuous Data)
(I-MR and Xbar-R)
I-MR (Individual - Moving Range Chart Example)
Use I-MR Chart to monitor the mean and variation of your process when you have continuous data that are individual
observations not in subgroups. Use this control chart to monitor process stability over time so that you can identify and correct
instabilities in a process.

GO OWN IT
MINITAB LET’S DO EXAMPLES

Dr. Thompson, a senior researcher has been monitoring the status of R-naught of an infectious disease following the
introduction of a vaccine aimed at curbing the said disease. Based on the past 23 months’ data, is it reasonable enough to
assume that the vaccine has been consistent in combating the disease’s progress?

OPEN THE SAMPLE DATA, Vaccine – IMR Chart

1. Choose Stat > Control Charts > Variables Charts for Individuals > I-MR
2. In Variables, enter R0
3. Click I-MR Options
4. On the Tests tab, select 1 point > K standard deviations from center line (Test 1) and K points in a row on same side of
center line (Test 2) *If you are not sure which tests apply in your specific situation, use Tests 1 and 2.
5. Click OK in each dialog box

33
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
I-MR (Individual - Moving Range Chart Example)
INTERPRET THE RESULTS

From the I-MR Chart:-

TEST 1: Both I-Chart & MR Chart


One point more than 3.00 standard
deviations from center line.
Test Failed at points: 7

Investigate point that failed the test


for special causes.

Vaccine is not stable.

Note: Out-of-control points can


influence the estimates of process
parameters and prevent control
limits from truly representing your
process. Investigate these points and
take necessary actions to reduce the
variation.

34
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
- R (Xbar – R: Mean – Range Chart Example)
Use Xbar R Chart to monitor the mean and variation of your process when you have continuous data in subgroups. Use this
control chart to monitor process stability over time so that you can identify and correct instabilities in a process.

GO BUILD TRUST
MINITAB LET’S DO EXAMPLES

An engineer has installed pressure switch on one of the water pump to control rise of fall in pressure. He wanted to assess the
fluctuation of pressure (psi) which may cause the pressure switch to trip. Pressure from the water pump is sampled 5 times
daily for 10 days.

OPEN THE SAMPLE DATA, Pressure Switch – Xbar R Chart

1. Choose Stat > Control Charts > Variables Charts for Subgroups > Xbar R
2. Choose Observations for a subgroup are in one row of columns
3. In Variables, enter Sample 1, Sample 2, Sample 3, Sample 4, Sample 5
4. Click Xbar R Options
5. On the Tests tab, select 1 point > K standard deviations from center line (Test 1) and K points in a row on same side of
center line (Test 2)
6. Click OK in each dialog box

35
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
- R (Xbar – R: Mean – Range Chart Example)

INTERPRET THE RESULTS

From the Xbar-R chart:-

There is no out of control points for


both Xbar-chart and R-chart.

Process is stable and in control.

Note: Out-of-control points can


influence the estimates of process
parameters and prevent control
limits from truly representing your
process. Investigate these points and
take necessary actions to reduce the
variation.

36
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Exercise 1: I-MR, Xbar-R, Xbar-S Charts
A quality engineer for a plastic parts company monitors an injection molding process. A machine has a die that creates five parts at one
time. The engineer collects 20 subgroups of five parts each. The engineer monitors both the variation between parts that are created at
the same time and the between-subgroup variation between the batches.

(PLOT I-MR TO MONITOR VARIATION BETWEEN INDIVIDUAL PARTS --> PLOT XBAR-R/S TO MONITOR VARIATION BETWEEN SUBGROUPS)

OPEN THE MINITAB FILE, InjectionMolding – Exercise I-MR, Xbar

1. Choose Stat > Control Charts > Variables Charts for Individuals > I-MR
2. In Variables, enter Parts
3. Click I-MR Options
4. On the Tests tab, select 1 point > K standard deviations from center line (Test 1) and K points in a row on same side of center line (Test
2)
5. Click OK in each dialog box

1. Choose Stat > Control Charts > Variables Charts for Subgroups > Xbar-S
2. Choose All Observations for a chart are in one column
3. In Subgroup sizes, enter Subgroup
4. Click Xbar S Options
5. On the Tests tab, select 1 point > K standard deviations from center line (Test 1) and K points in a row on same side of center line (Test
2)
6. Click OK in each dialog box. Click OK in each dialog box

37
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
RCA Tools Set

2
Control Chart (Discreet Data)
(P-Chart and U-Chart)
P-Chart (Proportion Chart – Discreet Data Example)
Use P Chart to monitor the proportion of defective items where each item can be classified into one of two categories, such as
pass or fail. Use this control chart to monitor process stability over time so that you can identify and correct instabilities in a
process.

GO OWN IT
MINITAB LET’S DO EXAMPLES

ABC Factory produces fans to monitor the performance of its production process, varying numbers of fans will be tested every
week. The number of fans which failed the test is recorded.

OPEN THE SAMPLE DATA, Fan Failed – P Chart

1. Choose Stat > Control Charts > Attribute Charts > P


2. In Variables, enter Fans failed test
3. In Subgroup sizes, enter Number of fans tested
4. Click P Chart Options
5. On the Tests tab, select 1 point > K standard deviations from center line (Test 1) and K points in a row on same side of center line
(Test 2)
6. Click OK in each dialog box

39
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
P-Chart (Proportion Chart – Discreet Data Example)

INTERPRET THE RESULTS

From the P chart:-

There is no out of control points.

Process is stable and in control.

Note: Out-of-control points can


influence the estimates of process
parameters and prevent control
limits from truly representing your
process. Investigate these points and
take necessary actions to reduce the
variation.

40
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
U-Chart (Discreet Data Example)
Use U Chart to monitor the number of defects per unit, where each item can have multiple defects. Use this control chart to
monitor process stability over time so that you can identify and correct instabilities in a process.

GO DRIVE INNOVATION
MINITAB LET’S DO EXAMPLES

Jimmy, an engineer works for a company that produces drive shafts. Pits on a shaft will make the shaft uneven while rotating the
wheels of a car, which might affect the comfort and performance of a car. Jimmy is responsible for monitoring the number of pits
found on the drive shafts during the production process, every week, jimmy will take 75 samples.

OPEN THE SAMPLE DATA, Bottle Defects – U Chart

1. Choose Stat > Control Charts > Attribute Charts > U


2. In Variables, enter No of Defects
3. In Subgroup sizes, enter Sample Size
4. Click U Chart Options
5. On the Tests tab, select 1 point > K standard deviations from center line (Test 1) and K points in a row on same side of center line
(Test 2)
6. Click OK in each dialog box

41
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
U-Chart (Discreet Data Example)

INTERPRET THE RESULTS

From the U chart:-

There is no out of control points.

Process is stable and in control.

Note: Out-of-control points can


influence the estimates of process
parameters and prevent control
limits from truly representing your
process. Investigate these points and
take necessary actions to reduce the
variation.

42
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Regression Analysis (Continuous Data)
Types of Regression

44
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Linear Regression

y = ß0 + ß1x y = ß0 - ß1x y = ß0 + ß1x + ß2x2

45
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Multiple Regression
EXAMPLE 5:
A materials engineer at a furniture manufacturing site wants to assess the stiffness of the particle board that the
manufacturer uses. The engineer measures the stiffness, density and temp of a sample of particle board pieces.

OPEN THE SAMPLE DATA, ParticleBoard – Regression.

1. Choose Stat > Regression > Regression > Fit Regression Model
2. In Responses, enter Stiffness
3. In Continuous Predictors, enter Temp Density
4. Click OK in each dialog box.

46
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Multiple Regression

47
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Simple Regression

48
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Multiple Regression
EXAMPLE 6:
An energy usage commission encourages a manufacturing plant to keep monthly energy usage below 1,000,000
kWh. For each kWh above 1,000,000, the plant pays a higher rate. Analysts want to develop a statistical model to
identify the major sources of energy usage and use it to develop guidelines for monthly equipment usage. They
begin by considering the following 8 predictors tabulated below. Analysts access 20 months of plant data from their
database. They use monthly temperature averages recorded by National Weather Bureau.

WEATHER DATA PLANT DATA


Variable Description Variable Description
Month 1 to 20 Units Produced Number of items produced each month
Mean Temp Mean daily for each month (°F) Total Equip Run Time Time accumulated on all 4 manufacturing lines each month
Min Temp Mean low for each month (°F) Employee Hours Employee hours worked per month
Max Temp Mean high for each month (°F) Avg Equip Age Mean equipment age per month
Percent Sun Percent sun for each month Energy Mean daily energy usage per month, kWh

49
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Multiple Regression

50
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Multiple Regression - Stepwise

51
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Pareto Chart
Pareto

EXAMPLE 7:
A quality paint shop engineer wants to conduct project selection based on defect rate data. The
engineer collects the defect data from Jun-22 to Dec-22 as the baseline information.

53
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Pareto

54
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
Root Cause Analysis Overview
RCA

1 2 3 4 5

• Fishbone, Pareto • Basic stats • Data distribution • Correlation • Hypothesis test


• Common tools:– • Control charts • Data types • Regression:– roadmap
• 7 QC • Continuous type • Std. Deviation Single & Multiple • Continuous type
• Lean • Special causes • Central tendency • Continuous type • Discreet type
• Boxplot • Discreet type • Ppk, Cpk, Sigma • Discreet type • P-Value

Common Tools Control Charts Process Capability Regression Hypothesis Test

Hypothesis Test
Fishbone, Pareto I-MR, Xbar-R Chart Normality, P-value Fitted Line Plot
Roadmap

7 QC Tools, Lean P-Chart Normal/Non-Normal Multiple regression 1, 2 Sample t test

Basic statistics Laney P-Chart Poisson / Binomial Discreet regression 1, 2 Proportion test

55
MANUFACTURING & ENGINEERING
OWN IT | BUILD TRUST | ONE TEAM | DRIVE INNOVATION | MOVE FAST | DELIGHT CUSTOMERS MANUFACTURING & ENGINEERING
COST REDUCTION & OPTIMISATION PROGRAMME (CROP)
#2 FY2023 SECRETARIAT ENGAGEMENT

25 OCTOBER 2023

You might also like