Achieving

Competitive
Excellence

Achieving Competitive Excellence

Overview

1/11/2020
Achieving
Competitive
Excellence
Agenda
 What is ACE?

 Why Are We Doing It?

 How Does ACE Work?

 What is the link between ACE and Ito

University?

 Summary
1/11/2020
Achieving
Competitive
Excellence
What is ACE?
 A comprehensive system to improve
quality

 A common process across all of UTC

 A set of standard measures

 A natural evolution of a continuous

performance culture

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Competitive
Excellence
ACE Background

 Started in manufacturing at Pratt &

Whitney in 1996

 Mechanism for improving quality by

achieving specified levels of
competency in 7 improvement tools

 Factory successes lead to broader

implementation

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Competitive
Excellence
Initial Structure

ACHIEVING
COMPETITIVE
EXCELLENCE

QUALITY SPEED COST

Process Mistake Set Up Standard

5S TPM QCPC
Certification Proofing Reduction Work
Achieving
Competitive
Excellence
Why ACE?
“Cost of Poor
Quality” Elements Scrap Warranty
Escapes Rework
(The Iceberg Model) Extra Inspection Repair
Visible
2-3% of Sales

Engineering Changes Lost Sales

Hidden Lost Sales
Lost Credibility
Recurring ?
Service Bulletins Lost
LostCustomer
CustomerLoyalty
Loyalty

Recurring Non - Visible

Engineering Notices Late Delivery Charges
5-8% of Sales
Extra Set-ups Excess Inventory

Long Cycle Times Supplier Quality

Non-Contractual Warranty Expediting Costs

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Competitive
Excellence
Why ACE?
 Involve and Empower Front-line
Leadership and the Workforce to be
“Owners” of their process

 Focus Entire Company on Stretch,

Consistent and Measurable Goals

 Align All Resources Under One

Integrated Initiative

1/11/2020
 Improve competitiveness
Achieving
Competitive
Excellence
How Does ACE Work?
Mission:
Achieve a level Achieving
Competitive
of quality Excellence
improvement
that will satisfy New 5S SPEED COST Passport
System
our customers Market
TPM
and allow us to QUALITY Feedback
Analysis
work more QCPC
Root Process Standard
Mistake Setup
efficiently Cause
Analysis Proofing
Management &
Certification
Reduction
Work

Ito University
Additional ACE tools

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Achieving
Competitive
Excellence
The Tools
 New 5S/Visual Workplace
 People take pride in their workplace,
improving efficiency and morale
 Spirit
 Sort
 Straighten
 Shine
 Standardize
 Sustain
 Anyone can walk into a workplace and
visually understand the current situation

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Achieving
Competitive
Excellence
The Tools
 TPM
 An equipment management strategy
designed to achieve maximum efficiency
through employee involvement
 Assigned Ownership of shared equipment
 Documentation of Downtime and Reasons
 Scheduled maintenance
 QCPC
 Simple tool used to continuously analyze a
process for quality improvement
opportunities and process inefficiencies or
“turnbacks”

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Achieving
Competitive
Excellence
The Tools

 Root Cause
 Rapid and persistent pursuit of the
fundamental breakdown or failure of the
process that when resolved, prevents
recurrence of the problem
 Mistake Proofing
 Using wisdom and ingenuity to provide
methods and/or devices that allow you to do
your job 100% defect free 100% of the time

1/11/2020
Achieving
Competitive
Excellence
The Tools
 Market Feedback Analysis
 Using unemotional customer data to focus on
the issues causing our customers the most
pain and frustration

 Passport
 A set of reviews integrated with the program
deployment process designed to ensure all
problems are identified in the deployment
cycle before moving to the next stage

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Achieving
Competitive
Excellence
The Tools
 Process Management and
Certification

 Process Certification
 Methodology that will reduce variation and
optimize the efficiency of our processes.
Process certification requires a process to be
capable and in control
 Process Management
 Disciplined approach to achieving business
process effectiveness, efficiency and agility

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Competitive
Excellence
The Tools

 Set-Up Reduction

 Reducing the time of change over a machine

or process from the last good part through
the acceptance of the next good part

 Allows for the reduction of lot size which

improves lead times and inventory

 Key is to move internal setup tasks to external

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Achieving
Competitive
Excellence
The Tools
 Standard Work
 The motion of the operator and the sequence
of the movement of material through the cell
or work area
 Takt Time
 Work Sequence
 Standard Work-In-Process
 The method by which work is simplified and
structured to ensure maximum consistency
and repeatability over time
 Simplified work instructions
 Defined standards
 Documented lessons learned
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Excellence
How Does ACE Work?
Four Achievement Levels:
 Qualifying
 Bronze
 Silver
 Gold Work Areas are Ready
to Certify Once…
 All metrics for each
tool have been
reached

Site is Certified Once…

 All work areas are certified
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Competitive
Excellence
Achievement Levels
Gold

Silver Excellence!

Bronze Step Change

Qualifying
Assessment and Application
Awareness and
Baseline Activity

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Competitive
Excellence
Achievement Criteria
Manufacturing
Qualifying
Criteria 5S
• ACE Awareness training
Example: • Owners for Shared Areas/Equipment Identified
• ACE Activity Board
• Checklists Developed and Utilized in Scheduled Audits

Business Process
5S
• ACE Awareness training
• Owners for Shared Areas/Equipment Identified
• ACE Activity Board
• Standards set for file organization
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Achieving
Competitive
Excellence
Qualifying Criteria
 ACE Overview Training
 ACE Element Training
 Emphasis in 5S and TPM and Process
Prioritization

32 Tactical Items

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Competitive
Excellence
Bronze Criteria
 More significant work in 5S, TPM
 Use of remaining tools
 QCPC, Root Cause, Mistake Proofing, Set-
Up Reduction, Process Certification and
Standard Work

48 Tactical Items

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Competitive
Excellence
Organizational Structure
UTC Corporate
UTC VP QUALITY
ACE Structure

UTC ACE Quality University

Program Manager Program Manager

Carrier Pratt & Whitney

ACE Program Manager ACE Program Manager

Hamilton Standard Sikorsky

ACE Program Manager ACE Program Manager
(UTC ACE Council)

Otis UT Automotive
ACE Program Manager ACE Program Manager

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Achieving
Competitive
Excellence
UTC ACE Council - Key Objectives

• Common Deployment Strategy

• Define ACE Elements - UTC-wide

• Achievement Level Criteria

• Define ACE Organization Model

• Skills Training Development with Ito U.

• ACE Promotion and Communication

Achieving
Competitive
Excellence
UTC ACE Council
Carrier Liz Haggerty
Hamilton Standard Mike Ladas
Kathy Paro
Otis Mike Beck
Pratt & Whitney Dave Haddock
Len Javinett
Pratt & Whitney Canada Dave Robinson
Sikorsky Dave Driscoll
UT Automotive Lori Bowen
Charlie Lingo
UTC Charlie Turecek
Achieving
Competitive
Excellence
Organizational Structure
ACE Structure
Business Unit Divisional ACE Steering Committee
Structure Champion

Divisional ACE
Program Management Team

ACE
Coordinators
ACE
Coordinators
... Supplier ACE
Coordinators

Pilots Pilots Pilots Pilots Pilots Pilots

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Competitive
Excellence
Roles and Responsibilities
• Corporate Champions

• Champions

• Owners

• ACE Program Management Team

• ACE Coordinators

• Pilots
Achieving
Competitive
Excellence
Roles and Responsibilities

Champions Lead the Deployment of ACE

Drive the Culture, Define the Targets,
Generate Excitement, Deliver Results the Business

Owners Lead the Change, Champion the Opportunities,

Scope the Benefits, Regular Project Reviews,
Deliver Results to Region, Budget Resources
Achieving
Competitive
Excellence
Pilots
 Full-time Associates
 Cover several work areas
 Responsible for driving continuous
improvement
 Coach/Lead improvement teams
 Set Schedules for training and activities
 Train associates
 Communication link between associates and
management
 Daily associate issues
 Daily equipment issues
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Excellence
ACE at Suppliers

• Phase 1 - Identify Suppliers

• Phase 2 - Assess and Plan

• Phase 3 - Implementation and Monitor

• Phase 4 - Train - Ito University

• Deliver results!

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Competitive
Excellence
ACE Implementation - Expectations

• Dedicated Pilots, ACE Coordinators and

Program Management Team

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Achieving
Competitive
Excellence
ACE Implementation - Expectations

• Dedicated Pilots, ACE Coordinators and

Program Management Team
• Active Management Support and
Involvement

1/11/2020
Achieving
Competitive
Excellence
ACE Implementation - Expectations

• Dedicated Pilots, ACE Coordinators and

Program Management Team
• Active Management Support and
Involvement
• On-going Training

1/11/2020
Achieving
Competitive
Excellence
ACE Implementation - Expectations

• Dedicated Pilots, ACE Coordinators and

Program Management Team
• Active Management Support and
Involvement
• On-going Training
• Achievement Rewards and Recognition

1/11/2020
Achieving
Competitive
Excellence
ACE Implementation - Expectations

• Dedicated Pilots, ACE Coordinators and

Program Management Team
• Active Management Support and
Involvement
• On-going Training
• Achievement Rewards and Recognition

• RESULTS!

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Achieving
Competitive
Excellence
ACE and Ito University

• All Ito University modules are ACE

Elements

• ACE activity supports and sustains the

Ito University teachings

• ACE will use Ito University subject-

matter experts to support Division
projects
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Achieving
Competitive
Excellence
Summary
ACE is UTC’s Achieving
new way of Competitive
Excellence
doing business.
It is an integrated New 5S SPEED COST Passport
System
approach to
Market
quality TPM
QUALITY Feedback
Analysis
improvement QCPC
Root Process Standard
driven by Cause Mistake
Management &
Setup Work
Proofing Reduction
Analysis Certification
consistent and Ito University
measurable Additional ACE tools

stretch goals
1/11/2020
Achieving
Competitive
Excellence

Questions?

1/11/2020
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Competitive
Excellence

1/11/2020