Methodology

Working on a 4 tier system each stacked on each other to form a supporting structure, the sentiment being a proactive conscientious approach to guide these variables using a KPI targets / upper and lower control limits expressed in a balance score card in the attempt to understand areas / perspectives of the company which are and are not performing enabling the company to adapt retaining / developing our position in the supply chain.

Balance Score Card / KPI Establishment:

Prospective Criteria KPI N0 unit of measure
Financial Profit & Loss KPI 01A £
Financial Bottom Line KPI 01B £
Financial T-Over KPI 01C £
Financial Cash Flow KPI 01D £
Financial Order Book Loading KPI 07A £
Financial Arrears KPI 07B £
Financial Items Quoted KPI 07C £
Financial Margin Report KPI 02A %
Financial Consignment Spend KPI 02B £
Customer Complaints KPI 03A %
Customer OTD KPI 04A %
Internal M/C VA KPI 05A %
Internal AW NCR KPI 06A Numerical
Internal Supply Sub Con KPI 08A Numerical

The balance score card is also part of this composition, the mission statement gives annual purpose, the strategy map lays out the criteria, the KPI’s give the criteria you wish to assess a unit of measure with control limits which in addition are expressed monthly in General Manager Report AS9100 to keep share holders informed of progression and finally the balance score card shows a summary of performance aiding in route cause analysis.

This card can be grown as KPI’s are added to elements of perspective and either assessed monthly or summarised quarterly.

The 5 Pillars

Sort

Sort, the first S, focuses on eliminating unnecessary items from the workplace that are not needed for current production operations. An effective visual method to identify these unneeded items is called “red tagging”, which involves evaluating the necessity of each item in a work area and dealing with it appropriately. A red tag is placed on all items that are not important for operations or that are not in the proper location or quantity. Once the red tag items are identified, these items are then moved to a central holding area for subsequent disposal, recycling, or reassignment. Organizations often find that sorting enables them to reclaim valuable floor space and eliminate such things as broken tools, scrap, and excess raw material.

Set in Order

Set In Order focuses on creating efficient and effective storage methods to arrange items so that they are easy to use and to label them so that they are easy to find and put away. Set in Order can only be implemented once the first pillar, Sort, has cleared the work area of unneeded items. Strategies for effective Set In Order include painting floors, affixing labels and placards to designate proper storage locations and methods, outlining work areas and locations, and installing modular shelving and cabinets.

Shine

Once the clutter that has been clogging the work areas is eliminated and remaining items are organized, the next step is to thoroughly clean the work area. Daily follow-up cleaning is necessary to sustain this improvement. Working in a clean environment enables workers to notice malfunctions in equipment such as leaks, vibrations, breakages, and misalignments. These changes, if left unattended, could lead to equipment failure and loss of production. Organizations often establish Shine targets, assignments, methods, and tools before beginning the shine pillar.

Standardise

Once the first three 5S’s have been implemented, the next pillar is to standardize the best practices in the work area. Standardize, the method to maintain the first three pillars, creates a consistent approach with which tasks and procedures are done. The three steps in this process are assigning 5S (Sort, Set in Order, Shine) job responsibilities, integrating 5S duties into regular work duties, and checking on the maintenance of 5S. Some of the tools used in standardizing the 5S procedures are: job cycle charts, visual cues (e.g., signs, placards, display scoreboards), scheduling of “five-minute” 5S periods, and check lists. The second part of Standardize is prevention – preventing accumulation of unneeded items, preventing procedures from breaking down, and preventing equipment and materials from getting dirty.

Sustain

Sustain, making a habit of properly maintaining correct procedures, is often the most difficult S to implement and achieve. Changing entrenched behaviors can be difficult, and the tendency is often to return to the status quo and the comfort zone of the “old way” of doing things. Sustain focuses on defining a new status quo and standard of work place organization. Without the Sustain pillar the achievements of the other pillars will not last long. Tools for sustaining 5S include signs and posters, newsletters, pocket manuals, team and management check-ins, performance reviews, and department tours. Organizations typically seek to reinforce 5S messages in multiple formats until it becomes “the way things are done.”

Kanban / Consigned Stock / JIT

Here at Arnold Wragg we like to be efficient at all stages of the process from start to finish. With this in mind we adopt a Kanban system with our tooling where we have consigned stocks of cutting tools stored in a vending machine so we can measure and improve our tooling spend as well as making sure we always have toolig in stock.