1st Edition
Fundamentals of Daily Shop Floor Management A Guide for Manufacturing Optimization and Excellence
Survival and thriving in today’s business environment require companies to continuously strive for operational excellence at all levels of the organization. Simply working to maintain existing operations is not an adequate or sustainable business strategy, especially when competing in a global market. To remain relevant, companies must adopt a process control and continuous improvement mentality as an integral part of their daily work activities. These two operational disciplines form the foundation and stepping stones for manufacturing excellence. Processes must be stable, capable, and controlled as a prerequisite for sustainable improvement. Sustainable improvements must be strategic, continuous, and focused on process optimization.
Modern-day manufacturing is rapidly changing in the face of technological, geopolitical, social, and environmental developments. These challenges are altering the way we think and act to transform raw materials into finished goods. Meeting these challenges requires particular attention to how we develop and engage people and apply technology for long-term sustainability and competitive advantage. This book takes you on a journey to explore the fundamental elements, management practices, improvement methods, and future direction of shop floor management.
Part 1 of this five-part book considers workplace culture, organizational structure, operational discipline, and employee accountability as the foundation for a robust manufacturing system. Part 2 studies the impact of process standardization, data analytics, information sharing, communication, and people on daily shop floor management. Once the management system has been adequately described, Part 3 concentrates on its effective execution, monitoring, and control with a deep look into the people, methods, machines, materials, and environment that make it possible. Like every good manufacturing text, efficiency and productivity are key topics. That’s why Part 4 explores various methods, tools, and techniques associated with product and process development, productivity improvement, agile methods, shop floor optimization, and manufacturing excellence. The final section, Part 5, shifts focus to emerging technologies, engaging the reader to contemplate technology’s impact on the digital transformation of the manufacturing industry.
Fundamentals of Daily Shop Floor Management:
A Guide for Manufacturing Optimization and Excellence
Table of Contents:
Preface
Figure P.1: Steps to Operational Excellence
Figure P.2: Daily Shop Floor Management Roadmap
Reference
Acknowledgment
About the Author
Introduction
Overview
Book Contents
Part 1 - Shop Floor Foundation
Part 2 - Shop Floor Fundamentals
Part 3 - Shop Floor Management
Part 4 - Shop Floor Improvement
Part 5 - Shop Floor - Next Generation
The Journey to Manufacturing Excellence
Daily Shop Floor Management
Essential Practices of Shop Floor Management
Figure I.1: Principles and Practices of Daily Shop Floor Management
Summary
Side Bar: 8 Steps for Improving Shop Floor Performance
Key Points
A Note about Supply Chain Management (SCM)
Manufacturing Supply Chain Management
Administration
Production
Distribution
Figure I.2: Key Supply Chain Functions
Figure I.3: Supply Chain Management (SCM) Activities
Figure I.4: Production Activities
Sources
Part 1 - Shop Floor Foundation
Overview
Figure 1.0.1: The Fundamental Elements of DSFM
1.1 Organizational Culture)
Introduction
Lean Mindset and Culture
Key Points – Culture
Organizational Commitment
Key Points - Commitment
Organizational Alignment
Key Points
Side Bar: A Multicultural World
Side Bar: Influencing Commitment
Source
1.2 Organizational Structure
Overview
Figure 1.0.1A: Fundamental Elements of Daily Shop Floor Management
Figure 1.2.1: Elements of Organizational Structure
Organizational Framework
Business Strategy
Guiding Principles
Routine Practices
Shop Floor Management Planning
Manufacturing Operations Manual (MOM)
Side Bar: A Manufacturing Management System
Guidelines, Procedures & Standards
Shop Floor System Execution
Standard Work Routines
Figure 1.2.2 Operating Instructions
Shop Floor System Monitoring
Figure 1.2.3: System Monitoring Practices
Key Process Indicators (KPI)
Visual Controls
Gemba Walks
Performance Reviews
Layered Process Audits
Process Control
Deviation Management
Action Item List
Structured Problem Solving
Total Productive Maintenance
Productivity Improvement
Key Points
Side Bar: Shop Floor Expectations
1.3 Operational Discipline
Overview
Figure 1.0.1B: Fundamental Elements of Daily Shop Floor Management
Sustainable Discipline
Improving Operational Discipline
How to Maintain Operational Discipline
Side Bar: Discipline Matters
Key Points
Sources
1.4 Employee Accountability
Overview
Figure 1.0.1C: Fundamental Elements of Daily Shop Floor Management
Corporate Accountability
Employee Accountability
Side Bar: Ways to Enhance Employee Accountability
Peer Accountability
Shop Floor Accountability
Setting Employee Expectations
Employee Feedback
Employee Empowerment
Rewards and Consequences
Treat People with Respect
Communication
Strategy Alignment
Case Study: Are you a Management Tool or Empowered?
Accountability vs. Micro-management
Attitude, Behavior and Accountability
Commitment and Accountability
Key Points:
Side Bar: Personal Accountability
Part 2 - Shop Floor Fundamentals
Overview
Figure 2.0.1 Fundamentals of Shop Floor Management
2.1 Standardization
Introduction
Figure 2.1.1: Shop Floor Control and Improvement
Workplace Cleanliness and Organization (5S)
Procedures and Standard Work Instructions (SWI)
Figure 2.1.2: Standard Work Instruction (SWI)
Standard Operation Sheet (SOS)
Figure 2.1.3: Standard Operation Sheet (SOS)
Work Place Design
Key Points
2.2 Shop Floor Data and Information
Measurement Data
Figure 2.2.1 Typical Manufacturing Metrics
Key Process Indicators
Figure 2.2.2: Input, Process, and Output indicators
Figure 2.2.3: Types of Metrics
Sidebar: Setting Performance Expectations
Data Gathering
Figure 2.2.4: Data Collection Plan
Data Analysis
Data Reporting
Key Points
2.3 Data Visualization
Overview
Visual Controls for Process Management
Figure 2.3.1: Visual Communication Elements
Common Visual Control Displays
Information or Communication Boards
Figure 2.3.2: Information or Communication Board Example
Figure 2.3.3: A Production Line Board Hourly Output Template
Manpower Planning Boards
Employee Cross-Training / Qualification Matrix
Figure 2.3.4: Employee Qualification Matrix
Andon Boards & Lights
Tip: Chart Preparation
Key Points
2.4 Shop Floor Communication
Overview
Figure 2.4.1: Five Shop Floor Communication Methods
Machine to Machine (M2M) Communication
Machine to Business (M2B) or Machine to Enterprise (M2E) Communication
Shop Floor Communication
Daily Meetings
Figure 2.4.2: Daily Meeting Hierarchy
Weekly Meetings
Monthly Meetings
Project Performance Reviews
Gemba Walks
Case Study: Gemba Walks in Action
Mobile Devices
Key Points
2.5 Shop Floor People
People Overview
Employee Empowerment
Respect, Honesty, Trust
Training & Development
Side Bar: Developing People through Workshops
Mentoring & Coaching
Recognition & Reward
Stakeholder Management
Side Bar: Employee Satisfaction
Key Points
2.6 Facilities Management
Shop Floor Environment
Technical Cleanliness
Ergonomics
ESD
Utilities
Key Points
Part 3 - Shop Floor Management
Overview
Figure 3.0A: Fundamental Elements of Daily Shop Floor Management
3.1 Manufacturing System Execution
Overview
Figure 3.0B: Fundamental Elements of Daily Shop Floor Management
Standard Work Routines
Figure 3.1.1: Roles, Responsibilities, and Standard Work Routines Hierarchy
Figure 3.1.2: Snapshot of Standard Work Routines.
Preparing Standard Work Routines
Key Points
3.2 Manufacturing System Monitoring
Overview
Figure 3.0C: Fundamental Elements of Daily Shop Floor Management
Process Monitoring / Verification
Figure 3.2.1: Shop Floor Monitoring Practices
Go, See, Observe
Gemba Walks
Side Bar: The 10 Minute Gemba Walk
Scrap Walks / Reviews
Layered Process Audits
Side Bar: Standard Process Audit Questions
Performance Reviews
Key Points
3.3 Manufacturing System Control
Overview
Figure 3.0D: Fundamental Elements of Daily Shop Floor Management
Manufacturing System Control
Figure 3.3.1: Manufacturing Practices and System Elements
Process Control
Figure 3.3.2: A View of Shop Floor Management
Manufacturing System Integrity
Standard Work Routines
Deviation Management
Figure 3.3.3: Deviation Management Methodology
Structured Problem Solving
Action Items
Figure 3.3.4: Example of Action Item Format
Decision Making
Poka Yoke
Jidoka
Figure 3.3.5: Jidoka Process Flow
Change Management
Production Change Points
Bottleneck Management
Additional Manufacturing System Controls
Figure 3.3.6: Manufacturing System Control Methods
Key Points
3.4 Manpower
Overview
Figure 3.4.0 Engaging with People
People Availability
People Flexibility
Workload Balancing
Manufacturing Gages and Tools
Employee Motivation
Training & Experience
Workplace Design & Ergonomic
Working Conditions (environment)
Autonomous Maintenance
Labor Efficiency
Employee Safety
Side Bar: Covid-19 in the Workplace
Key Points
3.5 Materials
Overview
Materials Requirements Planning (MRP)
Material Deployment and Replenishment
Milk Run
Water Spider
Material Handling and Storage
Traceability
Inventory Management
Figure 3.5.1: Categories of Manufacturing Materials
Health and safety
Side Bar: Material Kitting
Key Points
3.6 Manufacturing Equipment, Fixtures & Tooling
Overview
Equipment Optimization (Effectiveness, Reliability and Durability)
Overall Equipment Effectiveness (OEE)
Efficiency Losses (Big Six Losses)
Figure 3.6.1: OEE Losses and Examples
OEE Calculation
OEE Improvement Cycle with PDCA
Equipment Improvement Metrics - MTTR / MTBF
Figure 3.6.2: Visual of Time to Repair and Time Between Failure
Spare Parts Management
Side Bar: Tips for Reducing Equipment Downtime - Good Operating Disciplines
Equipment Reliability
Equipment Calibration
Measurement Systems Analysis
Figure 3.6.3: Measurement System Analysis Overview
Total Productive Maintenance (TPM)
Autonomous Maintenance
Systemic Maintenance
Training & Qualification
Asset Management
Equipment Durability
Key Points
3.7 Methods
Overview
PDCA
5S Method
Deviation Management
Side Bar: Investigating Abnormalities
Change Management
Structured Problem Solving
Figure 3.7.1: Problem Solving Methods
Just-in-Time Inventory
Policy Deployment
Figure 3.7.2: Policy Deployment
Side Bar: Organizational Policy
Single Minute Exchange of Die (SMED)
Figure 3.7.3: Changeover Time Reduction Process
Agile Manufacturing
Side Bar: Negative Side to Company growth
Summary
Key Points
3.8 Environment
Overview
Building layout/design
Ergonomics
Safety
Figure 3.8.1: Safe Workplace
Lighting
Temperature
Ventilation
Air Quality
Air Current
Noise
Humidity
Facility Space
Case Study: The Value of Space
Vibration
Key Points
Part 4 - Shop Floor Improvement
Overview
4.1 Product & Process Development
Overview
Design for Manufacturing
Figure 4.1.1: Design for Manufacturing Overview
Design for Six Sigma
Figure 4.1.2.: DFSS Methodology (DICOV)
Design & Process FMEA
Figure 4.1.3.: Failure Modes & Effects Analysis
Key Points
4.2 Productivity Improvement
Overview
Figure 4.2.0: Process Maturity
Incremental Improvement
Sustainable Improvement
Side Bar - Leveraging Organizational Knowledge
Improvement Methods
Quality Circles
Figure 4.2.1 - Seven Basic Quality Tools
Employee Idea Management
Set-up and Changeover (SMED)
Six Sigma DMAIC
Figure 4.2.2: Six Sigma DMAIC Methodology
Kata / PDCA Project
Figure 4.2.3 The Five Toyota Kata Questions and Four Reflections
Value Analysis
Figure 4.2.4. Value Analysis Process
Kaizen Events
Figure 4.2.5: Kaizen Event Process
Jishuken (Self-study) Workshops
Side Bar: Jishuken Workshops
Improvement Tools & Techniques
Go, See, Observe, Understand and Confirm
Side Bar: Tip for Effective Observation
Workplace Design
Process Mapping
Six Thinking Hats
Workload Balancing
Figure 4.2.6: Workload Balancing - Before and After
Production Leveling
Figure 4.2.7: Production Leveling.
Yamazumi Charts
Figure 4.2.8: Yamazumi chart
Buffer Management
Best Practice Sharing
Lessons Learned
Key Points
References
4.3 Agile Methods
Agile Overview
Application of Agile Practices
Predictive, Iterative and Incremental Life Cycles
Figure 4.3.1: Predictive Life Cycle
Figure 4.3.2: Iterative Life Cycle
Daily Stand-up meetings
Retrospectives
Co-location
Side Bar: Agility Response
Case Study: Manufacturing Agility
Key Points
4.4 Shop Floor Optimization
Overview
Figure 4.4.0: Optimize
Knowledgeable and Skilled People
Cooperation and Collaboration
Available and Reliable Equipment
Materials Management
Practices and Procedures
Operator Movement Optimization
Material Flow Optimization
Environmental Optimization
Optimization Methods, Tools and Techniques
Process Characterization
Design of Experiments
Response Surface Analysis
Process Flow Optimization Methods
Value Stream Mapping / Design
Figure 4.4.1 Value Stream Improvement
Side Bar: Optimization Beyond the Shop Floor
Constraint Management
Spaghetti Diagram
Figure 4.4.2 – Spaghetti Diagram Example
Lessons Learned
Case Study: A Pitch for Lessons Learned
Key Points
4.5 Manufacturing Excellence
Overview
Enterprise Alignment
Organizational Structure
Operational Discipline
Employee Accountability
Side Bar: Organize and Prioritize
Agility Mindset
Employee Development
Process Control
Continuous Improvement
Side Bar: Welcome Visitors
Technical Advancement
Supplier Partnerships
Lessons Learned
Shop Floor Practices
Summary
Case Study: Rules of Engagement
Key Points
Part 5 - Next Generation Shop Floor
Overview
Industry 4.0 Expectations
Digital Transformation
Productivity Improvements that make a Difference
Part 1 - Technical Innovations
Collaborative Robots (Cobots)
Figure 5.1: Cobot
Robotic Process Automation (RPA)
Automated Guided Vehicles (AGVs)
Micro AGVs
Smart Glasses
Centralized (Automated) Inspection (AOI)
Case Study: Visual Inspection with Artificial Intelligence
Fixed Production Cell
Autonomous (digital) Workforce
Part 2 - Thinking Differently
Big Data
Side Bar: Improvement Projects Using AI
Equipment Robustness (Reliability & Durability)
Predictive Equipment Maintenance
Figure 5.2: Evolution of Predictive Maintenance
Spare Parts Management
3D Printing of Spare Parts
Suitcase Tester
Vendor Managed Inventory (VMI)
Figure 5.3: Vendor Managed Inventory
Machine Learning
Modular Product Architecture
Mobile Devices
Gamification
Environmental Sustainability
Key Points
Appendices
Appendix 1 - Daily Shop Floor Management Checklist
Appendix 2 - Manufacturing Operations Manual
Appendix 3 - Standard Work Routines
Appendix 4 - Tips for Shop Floor Monitoring
Appendix 5 - SMED Workshop
Appendix 6- Jishuken Workshop Outline
Appendix 7 -Acronyms & Terms
Biography
Philip Gisi, PMP, SSMBB, has over 30 years of experience in the automotive, commercial and aerospace industries. His areas of expertise include new product development, process technology, quality management, automotive electronics, and manufacturing. He has worked internationally in multi-cultural environments and is currently involved in manufacturing operations as a manufacturing operations manager at Vitesco Technologies. Phil has a Master of Science in Engineering, a Master’s Certificate in Project Management, Lean Management Certification from the University of Michigan, Project Management Professional certification and a Six Sigma Master Black Belt (SSMBB). Phil is the author of the book “Sustaining a Culture of Process Control and Continuous Improvement: The Roadmap for Efficiency and Operational Excellence” and continues to share his experiences in Project Management, Lean Concepts, and Six Sigma Process Improvement as a DePaul University instructor for over 20 years.
