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DTD Guidebook for Effective Measurables

Version 2.0 Page 1 of54Revision Date: 3/05/99

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Document Control

Cover Page

Name of Document: Guidebook for Effective Measurables - Dock to Dock

0Current Effective Date 3/05/99 Current Version Number 2.0

0Record of RevisionsVersion

Number

Effective

Date

Revision Description Authorized

By

1.0 12/98 Initial Release S. Rezabek

2.0 3/05/99 Revisions done in conjunction with information gathered at

the GEM Review meeting

S. Rezabek


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Ford Production System

Guide Book to

Effective Measurables

Dock to Dock


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"Ordinarily

money put into raw materials orfinished stock is thought of as live

money. It is money in the business, it is

true, but having a stock of raw

materials or finished goods in excess of

requirements is waste - which like every

other waste, turns up in high prices and

low wages."

Henry FordToday and Tomorrow,

from Productivity Press


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TABLE OF CONTENTS

WHY MEASURE DOCK TO DOCK?...................................................................................................................................7

WHAT IS DOCK TO DOCK & HOW DO I CALCULATE IT? ......................................................................................15

WHAT IS DOCK TO DOCK? ....................................................................................................................................................17

IMPROVEMENT PROCESS SECTION.............................................................................................................................31

STEP 1: LAUNCH PLANNING ........................................................................................................................................34

STEP A: LAUNCH STRATAGY CHECKLIST............. ........... .......... ........... ........... .......... ........... ........... .......... .......... ....34

STEP B: DATA COLLECTION CHECKLIST.......... .......... ........... ........... .......... ........... ........... .......... ........... .......... .......36

STEP C(A): REPORTING CHECKLIST........................................................................................................................37

STEP C(B): EXTERNAL REPORTING - PLANT LEVEL DOCK TO DOCK.......... .......... ........... .......... .......... .......... ..38

STEP 2: LAUNCH PREPARATION.................................................................................................................................38

STEP 3: IMPLEMENT DTD MEASURABLEPROCESS................................................................................................38

STEP 4: ESTABLISH BASELINES ..................................................................................................................................38

STEP 5: PROCESS IMPROVEMENT CYCLE................... ........... ........... ........... ........... ........... ........... ......... .......... .........39

STEP 1: PLAN ..............................................................................................................................................................40

STEP 2: DO ...................................................................................................................................................................46

STEP 3: CHECK.............................................................................................................................................................46

STEP 4: ADJUST............................................................................................................................................................47

DIVISION SPECIFIC EXAMPLES SECTION ..................................................................................................................49

DIVISION SPECIFIC EXAMPLES ..............................................................................................................................................50


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7/54




0Why Measure Dock toDock?

SECTION= = = = = = = = = = = = = = = = = = = = = = = = = =

= = = = = = = = = = = = = = =


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Defects

Over-Processing

Motion

Inefficiency

Waiting

Inventory

Over Production


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INTRODUCTION

Dock to Dock is a FPS Measure that helps identify waste that occurs in the manufacturing process. It focuses

on the non-value added activities between the time raw materials are brought into the process and the time they

are shipped out as Products. Whenever parts stop and wait in the process, costs that do not add value begin to

build up. The following are some examples from our plants:= Space and storage systems for Work In Progress(WIP) are accepted as necessities.= As inventory builds parts are moved to unused areas and when needed can be difficult to locate.= Parts must be disposed of when they become obsolete by production or design changes.

When many parts are involved, the problems can become hard to see. Vast amounts of money are tied up in

inventory! The major waste categories are shown on the facing page.

waste

(wast) n

. anything

that takestime

,resourc

es

or space

but does not a

dd

to the va

lue of the

product

or service

delivere

d to the

custome

r .

Dock to Dock (DTD) is the elapsed time between the unloading of raw materials and the release of

the finished goods for shipment. DTD is a measure (in hours) of the speed of material through the plant,not the speed of the processes. By building large buffers you may produce more parts (increase the speed ofyour process) but slow down the speed of the materials. DTD should not be confused with inventory

management tools and metrics. It can't replace the inventory metrics used today (e.g. Days-of-Supply, Inventory

Turns, Float reductions, etc.). Since DTD only focuses on a control part for a Product Line, not all inventory,

it's important that plants implement Synchronous Material Flow to reduce total plant inventory.

DTD provides a focus for the entire plant. It can be one of the best indicators for a plant to use in determining

progress in implementation of lean manufacturing. DTD is like taking your temperature; it tells you, "your

sick", but it doesn't tell you where or why. This document is aimed at showing you where you can improve.

How can I get better?


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OBJECTIVE: The Ford Production System objective is

less than or equal to 1 day Dock to Dock

Time at each plant.

Why is speed (and Dock to Dock) so important?

New demands are being made on our industry. Plants

must eliminate waste and move towards a customer

"PULL" system.

Order to Delivery: The time it takes to produce and deliver a vehicle from final order amendment to delivery to

the dealership. The vision of OTD is a lean, flexible, and predictable process that combines the efforts of all

Company components to enable Ford to provide its dealers and their customers with the right products in the

right place at the right time. Ford's OTD is currently among the longest in the industry. Typically, a very

small percentage of our customers get the exact vehicle they want. The Dock to Dock trend will help

display the plants ability to minimize waste and increase inventory speed. Building what the customerwants, when they want it, at the lowest possible price (by getting rid of WASTE).

Our target is to meet exact customer

specification within 15 days.


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What will it take to compete in the future????

Three undeniable phenomena will shape the future:

1. shrinking product life cycles

2. intensified competition3. the global penetration of the Internet

In this environment, flexibility, cost/value (obtained by elimination of waste), and the ability to get the product

to the customer become an absolute necessity for us to remain competitive.

What is Ford Doing????

Cover stories in business magazines recently are describing the explosion of e-commerce. It was not long ago

that many people believed that cars and trucks would never be sold over the Internet. But, David Ropes

reports that as many as 15 percent of new car buyers in 1998 will shop the Internet before visiting the dealers.

Last month, Ford facilitated more than 1,000 new car sales through our dealers from sales leads from our

customers using our On Line Shopping Service through www.ford.com. David also reports that more than 400

of these sales were financed through Ford Credit.

Dec. 4, 1998

According to estimates from J.D. Power and Associates 50 percent of new car buyers will use the Internet to car

shop by 2000, up from 16 percent in 1997. Most shoppers use on-line information as ammunition in their dealer

negotiations. But a few consumers are already using the Internet to actually make a purchase.

The researchers say statistics are still fuzzy but estimate 1 to 4 percent of new cars were bought through Internet

services in 1997. Industry forecasts suggest the number could reach 20 percent in three years.

Dock to Dock and Order to Delivery are focused on the same concern: CUSTOMER SATISFACTION!

From exciting, crowd pleasing designs, to getting the exact vehicle the customer wants delivered quickly! In thefuture, Ford customers will expect to order their vehicles on the Internet. This will intensify the pressure on

quick/cheap delivery, since people expect to know when their order will arrive.


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To achieve the goal of "one day Dock to Dock", plants

must eliminate WASTE and increase speed!

Common Causes for Dock to Dock Problems1. Inventory excessive inventory is costly!

2. Inefficiencies buffers - needed to keep machines going;

looking for "misplaced" inventory, or just

buying more - when you can't find the

parts you need.

3. Over-Production building products with no immediatecustomer demand.

4. Motion moving inventory around then letting it

sit, unpacking racks holding repairs so

they can be used for production

5. Waiting changeover, equipment breakdowns, minor

stoppages,excessive tool change times

6. Defects repair time, scrap

7. Over

Processing

inspecting - instead of Error Proofing


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Benefits of Improving Dock to Dock

Shown on the facing page are common Dock to Dock concerns.

If waste is reduced, improvements in the other FPS Measurables will also be obtained. Some typical examples

are described below:

= Improve scheduled performance - increase Build to Schedule= Only build what the customer wants now. Don't let excess finished goods sit on your dock, justbecause someone may want them someday. Building large amounts of goods that are not needed is

the opposite of LEAN. This attacks excess inventory, over production and motion.

= Reduce scrap/improve quality - increase First Time ThoughDefects that require repair can slow down the entire process. Better quality should decrease the wastes

ofdefects, motion and inefficiencies.

= Improve equipment reliability/reduce downtime - increase Overall Equipment EffectivenessTo achieve a low (fast) Dock to Dock, you must be able to run when you need to. OEE is a great tool

for measuring and reducing unplanned downtime. Waiting should be minimized.

= Reduce cost - Total CostEliminating waste will result in big savings. These can affect any and all of the major waste categories.

Lower material handling, less dunnage, reduced storage space for excess inventory, less

obsolescence and lower inventory carrying cost are just "the first step in reducing waste". Space

regained by eliminating excess inventory provides room to grow future business!

Eliminating Waste to be on TOP!


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1What is Dock to Dock &

1How do I Calculate it?

= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =

SECTION


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0

Dock to

Dock Time =

Inventor control art

End Of Line Rate

Inventor is made u of

RawMaterials

Manufacturin -Work In Pro ress

FinishedGoods

DEFINITION OF DOCK TO DOCK

Whenever DTD is used in this document it refers to

Production Dock to Dock. Production DTD tells how

lon a control art will normall take to be converted

from Raw Material to a Finished Good and shi ed fromthe lant measured b when the facilit is runnin .

0


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Wh we dont use Total Dock to Dock!

Total Dock to Dock = Production Dock to Dock * 168/ roductionwhere 168 is the number of hours in a week and production hours are the number of

hours in the week, when the plant is making parts. The following example shows aplantwith 40 production hours a week, with a 12 hour dock to dock.

Monda

Mornin

start of

shift

Tuesda

Mornin

start of

shift

Tuesda

mid da

the art is

shi ed

8 hours 4 hours16 hours

Frida

Afternoon

near the

end of

shift

Monda

afternoon

end of

shift

Frida

afternoon

end of

shift

Monda

Mornin

start of

shift

1 hour 8 hours64 hours 16 hours 3 hours

Tuesda

mornin

the art is

shi ed

Best Case Scenario

In this case the lant would take 28 hours to shi .

Worst Case Scenario

In this case the lant would take 92 hours to shi

Total Dock to Dock= 12 Hours (Production DTD) * (168/40) = 50.4As shown in the examples: 50.4 is the average number of hours a control partwouldtake on average to be manufactured from Raw Material to be shipped as a FinishedGood.

This number shows how the operating pattern of the plant effects Dock to Dock. Abetter

way to report would be to show the shift schedule with the Production Dock toDock.

EXAMPLE: DTD = 12 Hours with one eight hour shift per week.


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What is Total Dock to Dock:

Total Hours Dock to Dock provides the average amount of time the customer must typically wait for Raw

Materials to be shipped as Finished Goods.

For example:

The plant level control part's DTD is 80 hours. That means if a plant is running one 40 hour shift per week it

will typically take more than two full weeks to convert Raw Materials to Finished Goods. DO NOT report

Total Dock to Dock. An example is shown on the facing page showing why Total Dock to Dock should not

be used.

As you review the example notice that in both the best and worst cases, the production dock to dock stays the

same (DTD = 12 Hours). The total dock to dock, only reflects the production schedule. A much simpler way to

show the same information is by reporting the Production Dock to Dock and the plants operating schedule.

Remember the goal is to improve Dock to Dock by reducing waste! Total DTD can show improvement by

increasing the production hours.

PRODUCTION DTD GOAL

D T D =Inventory

S p e e d

D T D

H o u r s

J a n F e b M a r A p r M a y J u n

R e d u c e I nv ento ry

I ncrea s e Speed

R e d u c e

T i m e

S p e n t

W a i ti n g

DTD Vision: Key FPS concepts and processes, like Synchronous Material Flow, are reflected in the chartillustrated below. These processes will drive the Dock to Dock measure in the right direction.

Marketplace

Min 1Max 3

Pull by downstreammanufacturing process

Push by upstreammanufacturing process

Pull based on predictablecustomer demand

Raw material orderedto support predictable

customer demand

No schedule

Material manufacturedwhen material is recieved


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Main Line

(End Item Product)

Feeder Line 3(Internal Product C)

Feeder Line 4(Internal Product D)

Feeder Line 1(Internal Product A)

OP10 OP20 External

Process

OP40 OP50

OP10 EP20 OP30 OP40 OP10 OP20 OP30 OP40 OP60

OP10 OP30OP20

OP40OP30OP20OP10

Feeder Line 2

(Internal Product B)

How to select Control Parts1. Diagram the processes as illustrated below, use the FPS defined plant wide control part if it

is processed on your line.

2. Determine characteristics of the Internal Products that are contained in the End Item Product

(In this example all four feeder lines manufacture parts included in the End Item Product.)

Parts are shipped

outside the plant for

processing.

This is the longest manufacturing

processes and due to the external

shipping has the largest inventory.

Product B is the least expensive

internal product and little inventory

is held in plant.

Inventory for this interal

product is very expensiveProcess runs well,

inventory costs are

stable and not

excessive.

3. In the example Feeder line 1 and 2 have the highest inventory costs. Due to the external processing, delays

are common on Feeder line 1. Analyze total cost and pick the control part that has the highest cost and

the longest process.


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What is a CONTROL PART?

A control part is a significant piece of theEnd Item Product that travels through the major processes involved in

the manufacture of the product.

FPS requires the followingplant level control part be used for:

Operation Control Part

Stamping Blank

Assembly Front Floor Pan

Engine Cylinder Block

Transmission Output Shaft

Electronics Board

Casting/Chassis/Plastics/etc Division selects a control part for end item product

(SEE THE DTD MATRIX at the beginning of the Division

Specific Examples section.)

Work Groups should use the plant level control part if it travels through their processes; otherwise they should

select a control part which travels through their major processes. Use the criteria given on the facing page

example. First identify parts that travel through the major processes, then consider Total Cost: Volume, Length

of Process, Material Cost, and the cost to collect information.

1

What are CONTROL PART NUMBERS?

The control part number represents the actual part number(s) for the control part. In some processes the control

part may be several part numbers, all which have the same function in the End Item or Internal Product. The

correct mapping of part numbers to control parts is critical when using any of the Measurables Extractors.

What is End of Line Rate?

The division must indicate which of the following values they will use to represent End of Line Rate:

1. The rate at which units are turned into shippable items. (Typically this is the average number of Products,

either end item or internal, that are made at either the last operation.)

Example: In Engine Assembly - The rate of engines out of the hot test area.

End of Line Rate It can be calculated by _Manufactured End Item Products per week_

Production Hours per week

2. Customer Demand Rate - The rate at which the customer requires the End Item Products per week.

(SEE THE DTD MATRIX at the beginning of the Division Specific Examples section for your

operation's EOL standard.)


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What is a Value Add Operation?

Activities that add form or function to the Product and that the customer is willing to pay for.

2DATA COLLECTION REQUIREMENTS:

3

4A plant wide Dock to Dock must be calculated for all End Item Products. As work groups are formed

they may want to calculate their own Dock to Dock measure where it makes business sense. Work groups

can calculate DTD for selected Internal Product(s).

What to count? / Where should I count?

Plant Level DTD:

Raw Material - Purchased Part (control part) - begin counting when it is received in the plant, even on

consignment, because it is already in its product form. Some product, like rolls of steel, have considerable

value added before they are received into the plant. Furthermore, purchased part inventory has a greateramount of exposure to engineering changes; the goal is to keep low inventory to minimize the time to respond

to an engineering change. For example:

= door inserts - counted in the plant's DTD when it is received at the plant= raw castings - counted in plant's DTD when it is received at the plant= rolls of steel (blanks)- must be counted when they are received at the plant. NOT after the= first operation. Rolls of steel can take significant floor space are expensive.

Raw Material (control part) - begin counting when it changes to the product form. For example:

= Plastic pellets are not counted in DTD until after the first operation (molding) and thereforehave changed from a raw material form to a product form

= Vinyl/body cloth - not counted in DTD until after the first operation (laminate or cut)(SEE THE DTD MATRIX at the beginning of the Division Specific Examples section for your

operation's Raw Material Standards)

Work-in-Process (WIP) - all Work in Process inventory for the control part is included in the DTD

calculation, including material in repair/rework areas, and all buffers including any parts awaiting disposition

such as Units On-Hold, Units Waiting for Repair, and Parts In Scrap Bins which havent been scrapped. WIP

stored in external warehouses must also be counted, this often occurs when parts require processing outside

the plant.

If all work groups involved in processing the control part are calculating a Dock to Dock value, the plant

level DTD WIP inventory can be calculated by:

Plant Level WIP = the SUM of all work groups (RM + WIP + FG) inventory

Note: Remember to add the Raw Material and Finished Goods that are not included in any of the work

group calculations.


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Finished Goods End Item Products - all finished goods containing the control part are included in the DTD

calculation until they are physically shipped from the dock.

Finished Goods stored in external warehouses should not be included in your DTD calculation. For

example plants in Mexico may have external warehouses in the USA, because of border crossing

concerns.

These warehouses are not part of the manufacturing processes and must not be included in DTD.

Material Procurement & Logistics Role:

MP&L plays an important role in the plant wide Dock to Dock improvement process. They are critical to the

implementation of Synchronous Material Flow, and should be part of the team focused on reducing inventory.

If you are getting data from a corporate system through a Measurables Extractor, it's important that your MP&L

people are involved in the configuration of the extractor. The extractors require up-to-date part numbers and

MP&L is usually the first to know about part number and plant scheduling changes. It may make sense for

MP&L to handle the configuration of the extractors.

Work Group DTD:

Work groups must define where they start counting Raw Material and stop counting Finished Goods. Work

groups must agree when their Finished Goods become the next work group's Raw Material. Material must

never be double counted (e.g. counted a one work groups finished goods and anothers raw material).

Typically, buffers between areas are the producing work group's Finished Goods. Remember our goal is a

pull system. The next work group "pulls" goods when they are required.

Feeder Line(Internal Product)

OP40OP30OP20OP10

Control parts

stored line side

Buffer

Finished

Goods Buffer

Finished Goods

Work In Process

Raw Material - Purchased Part (control part) - count the control parts that are owned by the work group. Do

not include the PLANT LEVEL control part's Raw Material held in the plant's warehouse or marketplace in

any work group's Dock to Dock calculation. Work groups need only count Raw Material that is in their

immediate control. In the example below, three work groups are making Internal Product A.


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OP10 EP20 OP30 OP40 OP50 OP60 OP70 OP80 OP90

(Internal Product A)

Work Group 1Work Group 2

Work Group 3

Each work group should only count the internal product control parts that are stored in their area (line side)

as Raw Material.

Work Group DTD:

Work-in-Process (WIP) - all Work in Process inventory for the control part is included in the DTD

calculation, including material in hold/repair/rework areas, and all buffers belong to the operation that

generated the WIP.

Finished Goods End Items - all parts containing the control part are included in the DTD calculation until the

next process claims them.

End of Line Rate - Each work group must calculate it's own end of line rate. If your division is using the rate

at which parts are turned into shippable items. The work group will typically pick the rate of their last

operation and use their own Production Hours. If the division is using customer demand rate, then the work

group should use the demand rate of the next process.

How to Count? (Both Plant and Work Group Level)

Manual data collection is encouraged. Periodic (weekly) manual data collection provides the plant with better

idea of where inventory is accumulating. Remember since only the control part is measured in the Dock to Dock

calculation, effective implementation of Synchronous Material Flow is critical to reducing all excess inventory.

Effective Value Added Analysis can only be done if data is collected by, and used by, work groups.

Manual data collection should be performed every week at the same time. FPS recommends that manual

collection be performed on Mondays. If cost effective, more frequent data collection is encouraged.

Daily collection of data can be automated, when corporate inventory systems are used to collect data.

Plants may be able to use the corporate inventory systems to count the number of control parts in Raw Material,Work In Progress and Finished Goods for either Plant level or Work group DTD. It is important that the plant

understand how they are using the inventory system to adjust part shipments and select the appropriate time to

extract the data.


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If the plant is NOT using the system as described below for each computer application, they CAN NOT

use the information from the system to calculate their DTD measurable, since BAD INFORMATION can

not be used to make effective changes.

CMMS may provide all necessary Balance on Hand (BOH) data (Purchased Parts, Work in Process, Finished

Goods) to Measurables to calculate DTD by Product Line if the following rules are followed:

= Typically, plants can not get work in progress data from CMMS, since there are not CMMS pay or countpoints between the Raw Material (production inventory) and the Finished Goods. To be able to distinguish

raw material/purchased part BOH from Work In Progress BOH, the plant would need a CMMS count point

set up at the first manufacturing operation; however, this is not always feasible or practical.

= Control part scrap must be recorded in CMMS every day at the same time. If control part scrap is reportedany other way (weekly/monthly/or when you have time), CMMS will not provide accurate information (and

may give negative values).

If production counts ofFinished Goods for the plant or work groups are reported in batches/lots/pallets/standard

packs, then the data extracted from CMMS will reflect only the completed batches (for example: 168 parts areindicated as one shipment in CMMS, but at the end of the day only 160 parts were completed for the final

batch). Since 160 parts do not fill a pallet, typically a plant will not report these parts to CMMS. Therefore, the

number of parts actually built will be 160 greater then the finished goods reported by CMMS. Since the 160

parts manufactured today can not be shipped until the batch is completed these need to be counted as FINISHED

GOODS.

To override the values from CMMS you can use the Measurables Input screen. You have to type in the

corrections after the CMMS Extractor has run for the PREVIOUS day. DTD information can be corrected in

CMMS until one day after the production date. This information will overwrite any updates made on the

Measurables Input Screen, so you normally do not want to update information manually in the Measurables

application until two days after production.

To provide a plant wide Dock to Dock, the plant should be using the CMMS schedule (the CMMSEXNA

screen). Random inventory checks of the Raw Materials should typically match the CMMS balance. If the

CMMS balance is often manually adjusted and/or the plant does not build what CMMS expects then CMMS

SHOULD NOT be used to calculate the plant's Dock to Dock.

Rules for using data from ILVS/AVS/PVS, MS3 and MIS will be added in the next version of this document.


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When to Count/Data Collection Frequency? (Both Plant and Work Group Level)

Data should be collected at the same time of week, which best represents the operating pattern for a product line.

Consistency in the time of the data collection will ensure that the DTD numbers measured and reported are a

true reflection of the material velocity.

Manual data collection -

Measure DTD weekly. This will help to ensure that DTD is a reflection of a normal production

operating cycle and not a snapshot in time. Data can be collected more frequently, if cost effective.

Automated data collection -

Measure DTD daily by end item product. Operating decisions should be made based on weekly or

monthly trend, do not use a single day's information to make decisions. Typically a minimum of 30 days

information should be analyzed before changes are made.

What should we do with the collected information ?

The Synchronous Material Flow process provides tools to focus on inventory control and reduction, which can

dramatically improve the plant's DTD measurable. Knowing where your excess inventory is can help you focus

on reduction.

A Value Added Analysis should be performed during the Current State Mapping for each new application area

that launches FPS. The VA Analysis should be done periodically within a product line to measure progress

toward the elimination of non-value add activities. Value added analysis is one of the primary tools for

identifying and eliminating WASTE!


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By using both Value Add Analysis and Synchronous Material

Flow concepts, the results should be considerable

improvements in the Dock to Dock measure. The following

section of this document focuses on using data to improve

the process.


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Sample calculation sheet:

Total Dock to Dock TimeCalculation Worksheet

Section IControl Part Name:

Product (End Item/Internal)

Date Data Collected:

Section II

Manufactured products/week (A) OR Customer Demand

End of Line Rate = Production hours/week (B) rate per week

= End Of LineRate (C)

Section III

(D) (E)

D/C

Units in Production

Area Hours

Raw Materials =

Manufacturing Processes: (optional)

Work Group 1 =

Work Group 2 =

Work Group 3 =

Work Group 4 =

Work Group 5 =

Work Group 6 =

Work In Progress =

Finished Goods =

TOTALS =

Total UnitsDTD

ProductionHours


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Total Dock to Dock TimeCalculation Worksheet Instructions

Section I = Control Part InformationRecord information on control part in Section I of calculation sheet.

- Record control part; Remember a control part may map to several

part numbers.

- Record the date. Manual data collection should be performed once

a week. Typically plants should collect data on Mondays.

Product, circle internal or end-item

Section II = Calculate End of Line RateEnd of Line Rate = #of products built per week of the Product (A)

Number of production hours per week (B)

or

End of Line Rate = Customer demand rate per week of the Product.

- Production hours per week = The number of manufacturing hours.

- Production hours per week. Do not include contractual downtime (contractually

required breaks and paid lunches are excluded).


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2Improvement ProcessSection

SECTION= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =


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RawMaterials

Manufacturing-Work In Progress

FinishedGoods

Dock to Dock focuses on:

Where Does The Time Go?

Dock to Dock Production Hours

7/16/97

Value Added

5%

Buffer

10%

Rew ork

31 %

Inspection

1%

Transfer

53%


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How to Improve Dock to Dock

'Value Added Analysis' (VAA) is an excellent tool to analyze and improve the elements of DTD. When FPS

is launched in an area Current State Mapping is performed. Part of the process is a Value-Add/Non Value Add

analysis. This process must be performed regularly to ensure that waste is being reduced and DTD is improving.

FPS recommends that DTD be measured and the trend charted for at least 30 days before and after changes are

made.

Value-Added

Non-Value

Added

Valued added activities are those that add form or function to the product and the

customer is willing to pay for.

Any activity that does not add form or function to the product is considered non-value

added waste.

No company can have 100% value added activity. World class companies have between 30% to 50% value

added activities. Typical areas in our plant have from 0.3 % to 25% value added activities. Recent studies put

our average process at 4% to 10% value added activities.

Displayed in the following chart are typical Value Added / Non-Value Added activities.There are some operations that are needed that do not add value to the part or product but are required to run the

business. It is important that the difference between these functions is clearly understood.

Value Added Non-Value Added

Necessary Welding component to

unit

Transfer unit between

operations

Unnecessary Extra time unit spends in

oven due to process

Excessive buffers, inventory,

and raw materialsValue Added / Non Value Added Matrix

The goal is to reduce or eliminate Non-Value Added activities and speed

up all activities to allow your plant to respond quickly to changes in the

marketplace or demand.

As the plant begins internal logistics portion of the Synchronous Material Flow process, they will implement a

Plan for Every Part. This plan considers all information about a part including: Lot Size, Packaging,

Presentation to the operator, Delivery strategy (scan, card, call, in sequence), Float at lineside and the

marketplace, etc The work groups participation in the planning and implementation of the SynchronousMaterial Flow process where it affects their jobs will be key in reducing inventory and improving Dock to Dock.


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Dock to Dock Launch Strategy Check List

Directions: Enter a check for each completed action. When an action has not been completed, use the description for

your action plan and projected completion date.

Plant:

Process / product:

Checklist completed by : (please list all names)Checklist reviewed by:

Check List Questions

Check for

yes Description/Date

Obtain a list of all End I tem Products produced by the plant

Diagram processes and und erstand how many of the products flow

through the same process.

Are all product lines calculated?

Have you established a plantwide c ontrol part?

Do you have m ore than one plantwide control part?

Do you ship the control parts outside for processing (paint, plating,

etc..)?

Have you established work group co ntrol parts (if the plant wide

does not travel through their processes)?

Has a value-add-analysis been performed with current state

mapping?

Is your control part a significant piece of the final product that

travels through the major processes involved in the manufacture of

the product?

Is DTD currently measured plantwide?

Management has received Measurables training and understands

the value of a low Dock to Dock?

Management regularly reviews the Plant Level Dock to Dock

value and mades business decisions based upon it?

Management has established goals for Plant Level Dock to Dock?

A process for determining business value and cost of measuring

Dock To D ock for work groups has been established?

Is DTD currently measured by individual wo rkgroups?Does the Team leader / Superintendent / Supervisor (for every

work group collecting DTD) understand the business value of

DTD? Describe training.

Have Team Leaders/Superintendents/Supervisors been shown how

to set DTD goals?

Do Tean Leaders/Superintendents/Supervisors understand how to

use Value Added Analysis to drive down DTD? Describe training.

Do Team Leaders/Superintendents/Supervisors understand how

Synchronous Material Flow effects the Dock to Dock Measurable?

Has at least one member of each workgroup received some type of

Measurables Training? (Joe's Pizza / Henry's House Sim ulation)

Do the workgroups understand how DTD goals are set and

reviewed?Do work groups understand how to use Value Added Analysis to

drive down DTD? Describe training.

Do work groups understand how Synchronous Material Flow

effects the Dock to Dock Measurable?


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1STEP B: DATA COLLECTION CHECKLISTThe plant completes the data collection checklist (displayed below).

Dock to Dock Data Collection Check ListDirections: Enter a check for each completed action. When an action has not been completed, use the

description field for your action plan and projected completion date.

Plant:

Process / product:

Checklist completed by: (please list all names)

Checklist reviewed by:


Check

for yes Description/Date

Are responsibililities for who

collects/enters/edits/configures plant level DTD clearly

Does each work group understand who is responsible for

configuring/entering/editing DTD data for their internalproducts?

Do you collect all your data on the floor at the point of

If you manually collect data, do you collect it once a week

on Monday?

Or do you use a corporate or local computer system to

collect information? Please describe which system is used

and what data it collects.

Have all requirement for using a corporate system been

reviewed and processes are in place to assure data

integrity?

Do you begin counting purchased parts when they arereceived in plant (already in product form)?

Do you begin calculating DTD when the raw material

changes to the product form (I.e. vinyl not counted in DTD

until after it has been laminated or cut and is now in

product form)?

Do you include your Work in Process (including material in

hold/repair/rework areas and all material in buffers) when

doing calculations?

Are all finished goods included in your calculation until

they are shipped from the dock?

Do you have an outside warehouse for your parts?

Outside warehouse parts are excluded from your Finished

Goods count?

Do you take out any other time other than contractual for

net available time when calculating end of line rate?

Describe what is subtracted and why.


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2STEP C(A): REPORTING CHECKLIST

Dock to Dock Reporting Check ListDirections: Enter a check for each com leted action. When an action has not been com leted, use the

description field for your action plan and projected completion date.

Plant:

Process / product:

Checklist completed by: (please list all names)

Checklist reviewed by:


Check

for yes Description/Date

Are responsibililities for who prints plant level DTD

trends, value added analysis and inventory status clearly

Does each work group understand who is responsible for

printing and distributing DTD data and reports for their

internal products?

Does each Team Leader/Superintendent/Supervisor receive

their area's reports on a regular basis?

Is their a regular meeting where management reviews their

plant level DTD information?

Do work groups post their internal product DTD

information and value added analysis for regular

managment/superintendent review?

Does management express interest in getting more DTD

information?

Are work groups showing sustained improvements in

eliminating waste, via their Value Added Analysis reports?

Do you begin calculating DTD when the raw material

changes to the product form (I.e. vinyl not counted in DTD

until after it has been laminated or cut and is now in

product form)?

Is their an escalation process where work groups can ask

for assistance to make improvements in their area to

eliminate waste?

Is the FPS Measurables system used for reporting?

Does the FPS Measurables system provide useful reports

for Plant External Reporting? If not, do you have a good

alternative? Please describe.

Does the FPS Measurables system provide useful reportsfor management? If not, do you have a good alternative?

Please describe.

Does the FPS Measurables system provide useful reports

for Team Leaders/Superintendents and work groups? If

not, do you have a good alternative? Please describe.


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3STEP C(B): EXTERNAL REPORTING - PLANT LEVEL DOCK TO DOCKPlants are currently required to roll up the individual product line DTDs into a DTD for the entire plant. Plant

Controller offices typically provide the Measurables Coordinators with a cost weighted average for each product

line. Per the FPS Measurables Coordinators Guide (pg. A-20), this cost weighted average is a function of the

budgeted volume and the 'cost added' (excludes material cost) for each product line. The group agreed that thisapproach would remain unchanged in the future. It is important to note that plant-level DTDs are should not be

used inside the plant (since work groups can only effect their DTD's); this type of reporting is done for Division

and System Business Unit management only.

3STEP 2: LAUNCH PREPARATIONUse the completed checklists for Strategy, Data Collection and Reporting (completed in Step #1) to

determine which activities are not completed. Create a project work plan that details all tasks, person(s)

responsible for the task and forecast completion dates. A standard project management software

package like Microsoft project can be useful to track your progress. This project plan should be the

responsibility of the plant's FPS Plant Implement Team and FPS Measurable Coordinator. It should bereviewed regularly by the plant's management.

Remember implementation of the Measurables (including DTD) should follow the plant specific

implementation plan (for FPS). A current state mapping and Value Added Analysis are critical to the

successful use of the Dock to Dock measure.

4STEP 3: IMPLEMENT DTD MEASURABLE PROCESSOnce launch planning and preparation have been completed the plant begins the process of implementing the

DTD Measurables Process. First by collecting data in the Initial Application Area followed by all other areas in

the plant in accordance to the predetermined launch plan. Second, inn sync with data collection, Base Lines are

established (Step 4) and the (PDCA) Plan, Do, Check, Adjust process (Step 5) are employed to attain continuous

quality improvement.

5STEP 4: ESTABLISH BASELINESIn order to identify opportunities for improvement and evaluate the effectiveness of improvement efforts, it is

necessary to establish DTD baselines within each Plant Application Area and for each Plant end-item product.

DTD baselines should be used to establish internal DTD targets and trend improvement progress. It is

recommended that thirty (30) production days of data be used to establish DTD baselines. Internal targets

should be reasonable and clear action plans must be developed which outline how these targets will be

achieved.


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6STEP 5: PROCESS IMPROVEMENT CYCLE

Each Application Area should continuously follow the Plan, Do, Check, Adjust (PDCA) Process Improvement

Cycle (shown below).

Plan (set targets)

= Identifying opportunities for the elimination of related wastes (Value Added Analysis and Internal Logistic -Synchronous Material Flow)=

Do

= Applying the appropriate Ford Production System tools to improve the processes= Check

= Checking the effectiveness of work group improvement actions= = Adjust= Standardizing improvements (Adjust).

The Problem Solution Cycle is the process for driving and measuring the improvement of

equipment operation. The process is continuous until the objective has been met.

Continuous Process Improvement Cycle

Plan

Do

Adjust

Check

At ob ective?


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DATE : Process = Location = Author :

Description Version :

Operation

NVA Op

Storage

Delay

Inspection

Transport

TIME (secs)

DISTANCE

QTY ( # parts )

REMARKS : Visual / Sketch

: Current State

: Im rovement (future) 1. Complete the date, process and location fields. Use names that shop floor people will recognize.

2. For each step in the process fill in:

= Description of the step. Describe exactly what happens to the control part at each process. Bespecific! Don't leave it to peoples imagination.

= Mark the appropriate symbol on the chart, which signifies what is happening to the controlpart.

= Note the time in seconds at the step in the time field. (If supported by your plant, you canalso use a estimate to get started)

= Show the distance traveled from the previous step. (use either meters or feet)= Record the number of control parts held at each step in the QTY field. (For this date/time)


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Shown below is a sample of a partially completed Value Add - Process Flow.DATE : 15-11-98 Process = Differential Manufacture Location = John's Axle Plant Author :

Description Version :

fitdifferential

coverand

Identificationtag

TransporttoFian

l

assemblybuffer

store

Storeinbuffer

loadtofinall

assemblystation

OP

NO1

60

Aseemblebreak

components

Loadtoshipping

Pallet

Operation

NVA Op

Storage

Delay

Inspection

Transport TOTALS

TIME (secs) 60 10 852 10 450 30 1412 (secs)

DISTANCE (meters) 0 0 0 1.5 0 1.5 3 (meters)

QTY ( # of parts ) 1 1 1 1 1 6 11 (parts)

Notice that the step descriptions are easy to understand and the control parts path through the

steps is charted by the type of step.

The total TIME, DISTANCE and QUANTITY OF Control Parts at the step are calculated.

Percentage of Value Added:Once the process flow is completed (results resemble the chart above), you can calculated the percentage of

value added operation.

Value Add % operations = Number of Value Add OperationsNumber of steps in the process

If you have 38 steps and 8 are value added = 8 = 21% Value Add Steps

38

A better metric is the amount of time you are spending doing value added work. Since you couldreduce steps, but not really eliminate waste. Teams should set targets to track their improvements.

Value Added % time = Sum of value-added time = 60 + 450 = 35% Value Add Time

TOTAL TIME 1412


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Step 1: Plan - Inventory Questions

When studying Dock to Dock the following questions may help the plant find areas to focus

improvement. Remember Dock to Dock is measures of time not inventory. It is intended to measure

the how effectively inventory flows through the process, and although there is a connection to inventory

in most of our manufacturing systems there is not a tight correlation.

Raw Material: Receiving

Incoming Materials

How often does material come in?

What are your receiving hours?

Do you receive advanced shipping notices?

Do you have the supplier inspect/[certify] material?

Do you inspect the material?

How do you know material is approved?

Do you accept the material without the paperwork?

Do you physically match material with the paperwork?

Do you have an inspection plan?

How quickly do you handle changes in specs?

Storage

How do you know where to put material when it comes in?

How many different areas do you store material in?

ReturnsWhere do you store rejected material?

How do you handle rejects?

How quickly do you handle rejects?


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Work In Progress

How do you get material to point of operation?

Who do you tell when you need material moved?

Is WIP stored in the same location every time?

Do you follow First In First Out for all WIP?

How do you know when you need parts or material brought to the line?

How many hours is the line scheduled to work and what are the actual hours worked?

How do you know how many parts to run?

What is a normal run size?

How many hours a day is scheduled and how many actual hours a day do you work?

Do you know the Engineering cycle time and do you run at that time?

What's the line speed/target?

Area/Process: Finished Goods

Operations

How do you manage shipping instructions to your customers?

Do you ship on time as the customer requested?

How do you know what to ship and to where?

How do you know if you are behind or ahead on shipments?

How many times do you transfer stock?

How do you ship, rail or truck?

Do you always ship full trucks?


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How do you handle returns?

How many hours do you work Finished Goods?

How many days inventory?

Do you ship from the dock in First In First Out?

Are Finished Goods stored in the same place, by type, every time?


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56STEP 2: DOEvaluate your Value Added Analysis Process Flow and look for opportunities on the process can be

improved. When you first study any mass production process it is very common to have a value add

percentage (both of time and operations) of less than 20%. See this as an opportunity, not as a problem.

Here are a few ideas to consider to improve the process:

Can any of the non value operations, storage, delay, transportation, or inspection be reduced?= = Maybe an inspection could be removed if an "Error Proofing" device was installed.= Can the layout be changed to reduce the distance between process steps? Remember when

you are implement flow racks to present parts to the operator (as part of Synchronous

Material Flow) to try to eliminated wasted motion.

= Can the number of parts be reduced at each process step?= Can buffers be reduced?=

Can batch sizes be reduced? Remember where ever possible implement single piece flow.= Review the results of the inventory questions. Are there areas where you can make improvements? A

common example would be to always store Work in Progress in the same location and to follow first in

- first out.

Discuss the opportunities for improvement with your team (either work group or plant level).

Determine which items will be possible to implement. Prioritized your improvements based on cost

benefits. You don't want to changes too much at once. By setting reasonable incremental targets

(PLAN), correctly implementing changes (DO), you should see improvements after implementation as

you CHECK your results.

Once the team has decided what actions to implement a project plan should be created and updated to

ensure that items are completed. Teams may want to use Microsoft Project or in Powertrain & Vehicle

Operations the CPIP application, Visteon teams can use CSS, to help them track progress.

789STEP 3: CHECKAfter implementing changes from the improvement plan the group must trend data to verify that

improvement actions are working.

MEASURABLES trend reports will be inserted here in the next version 3.0 of this document.


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10STEP 4: ADJUST

Once the effectiveness of an improvement action has been verified by a review of the appropriate DTD

information, the improvement must be STANDARDIZED. The Application Area should develop and

implement methods to maintain the new standard.

For example: If the area has implemented flow racks to minimize line side inventory and eliminate wasted

operator motion. Some of the actions which should ensure that the change :

= Revising the appropriate QPS SHEETS with the effected production operators,= = Applying VISUAL FACTORY techniques to provide clear visual indication of the location of the flow

control racks and SMART mailbox, scan or call button.= = Continued monitoring of the DTD MEASURABLE and inventory levels & costs on a timely basis to

detect if the new process fails to unction properly.

Implementing and maintaining standards is a key application area responsibility in the Continuous Improvement

Process.


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7Division Specific Examples

Value Add Analysis - Process Flow Example

This example is based on a Rear Axle Assembly Line located within in a fictitious company JohnsTransmissions ltd. The process flow sheet is completed for the control part only, which is the differential case.

The differential case is the only component that flows through the entire application area.

The production process for the axle is totally manual. There are13 operators that normally work at the

same station every shift. The process is as follows:

= Differential cases are unloaded from the pallet four at a time inspected, de-burred and loaded into thewashing machine four at a time and washed Op No 10.

= The cases are then unloaded one at a time and loaded to OP NO 20 where the Pinion cone is pressed to thehousing.

= The case is then moved manually to Op No 30 where the pinion shaft and remaining bearing cone havebeen pressed in place. The master setting aid is then inserted.

= The friction moment is then measured at Op No 40 and the master setting aid disassembled and thedifferential flange coupling fitted and the torque measured to ensure correct pre-load.

= At Op No 100 the Half shaft tubes are pressed into the differential case.= The two tubes are puddle welded at Op No 110.= The Differential Assembly is then transported to the cooling store as it takes approximately 30 minutes for

each axle to cool to room temperature prior to fitting the differential ring gear assembly so as to ensure the

prescribed amount of backlash is not effected by contraction.

= The differential ring Assembly is fitted in Op No 120 and adjusted to the correct backlash.= The gear mesh pattern is checked at Op No 130.= The cover plate is fitted at Op No 150.=

At the final Assembly station Op No 160, the following components are fitted:= Break calipers, Half shafts, Hand Break Cable, Break Drum, and Various seals.= The completed axle is then loaded in a shipping rack for dispatch to the customer.

On the following pages the Process Flow Chart is presented.


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Measurables Divisional Policies

Vehicle Ops Powertrain

Divisional Policies Assembly Stamping Engine Transmission Casting Electronics Interior Exterior ClC

DTD

Indicate your plant level control part Blanks PlasticPellets

When raw materials in non product form

is counted (when received or after first

process)

When

received

After 1st

process

End of line rate (customer demand rate

per week or Manufactured End ItemProducts per week divided by the

Production Hours per week)


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Instal Pinion Flange

Load to to pinion

mounting Op no 50

assemble Differential

flange coupling

Tighten nut with

toque wrench

Measuer torque

Retighten Nut

Check Torque

Transport to Tube

press buffer

Buffer store

Load to tube press

OP NO 100

Press axle tubes

Transport Axle to

weld station

Weld axle tubes to

Differential housing

Transport to coolingbuffer

Buffer storefor

cooling

Transport to

differential gear

asembly area

Assemble differential

gear to axle OP No

120

3

4

15

12

6

8

6

5

540

5

8

4.5

40

8

1800

10

270

0

1

0

0

0

0

0

4

0

2

0

5

0

2

0

3

0

1

1

1

1

1

1

1

1

2

1

1

1

1

1

6

1

1


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Check backlash

Adjust backlash

Check back lash

Transport to Gear

mesh test buffer

Diferential and axle

assembly to gear

mesh tester OP 150

Check Gear Mesh

Transport to diff

cover assembly

station

fit differential

coverand

Identification tag

Transport to Fianl

assembly buffer

store

Store in buffer

load to finall

assembly station OP

NO 160

Aseemble break

components

Load to shipping

Pallet

TO

10

20

10

540

6

180

4

60

10

852

10

450

30

5

0

0

0

2

1.5

0

1

0

0

0

1.5

0

1.5

1

1

1

2

1

1

1

1

1

1

1

1

6

dtd guide book

Documents