1. Project Information Project Name Process Improvement Project Project Number P09457 Project Family Sustainable Technology for the Global Market Track Process Improvement Innovations Faculty Guide Professor John Kaemmerlen Primary Customer Dresser-Rand Piping and Packaging Area Team Members Eric MacCormack Colin Roy Jimmy Ichihana Cody Rath Duke Bonaventura

2. Agenda Meeting Timeline Start timeTopic of Review 9:00Introduction of Project & Project Team, Agenda 9:05Project Approach 9:10Customer Needs & Engineering Specs 9:20Project Timeline 9:25Risks and Contingencies 9:35Introduction to Process Flow 9:45Weld Booth Project 10:00Facility Layout Project 10:10Hydro Table Project 10:20Consignment and VMI Project 10:30Conclusion

3. Project Approach After initial review of Dresser-Rand Piping and Packaging area it has been determined that the best approach is to break up the floor into several subsystems: – New Floor Layout – Weld Booths – Consignment and VMI Inventory – Tubing and Instrumentation – Cutting, Bending, and Cleaning – Final Assembly

4. Project Approach For 25 years process improvement has been overlooked at Dresser-Rand’s facility. There are many opportunities at making improvements throughout the facility. – Many problems could be individual capstone projects – Proposing quick and inexpensive solutions to several problem areas is the focus of this project

5. Customer Needs Customer Need # ImportanceDescriptionComments/Status CN11 - 1 Increased worker safety by decreasing/preventing recordable injuries and near missesHolds the most weight in reason for change CN21 - 2Increased plant capacityMore floor space allows for more work to be accessible CN31 - 3Increased throughput of final product CN42 - 1 Standard work stations so any employee can quickly identify and operate equipmentCurrently no standards in work processes, work zones, booths CN52 - 2 Improve flow of parts and material between cellsFind solutions to allow parts to flow through the factory CN63 - 1Install visual controls Allow for faster retrieval or parts, resources, personnel priorities CN73 - 2Eliminate unnecessary inventorySome parts in the consignment area have a thick layer of dust Cust. Need #: enables cross-referencing (traceability) with specifications Importance: 1=must have, 2=nice to have, 3=preference only

6. Specifications Engr. Spec. # Importa nce Source Specification (description)Unit of Measure Marginal Value Ideal Value Comments/ Status ES11CN1Recordable InjuryInjuries / yr 00Should be ES21CN1Near Miss Injury Near Miss Injuries / yr 00Should be ES31CN2 Increased floor space for new opportunitysq ft10%30% ES41CN3Finished products out the doorParts / yr5%15% ES52CN4Standard welding stationsSpecs SameYYYes/No ES62CN5Total distance materials travelft-15%-40% ES73CN6Consignment part availabilityPercent Available 90% 100% ES83CN6 Trigger response to recognize what seeingResponse Time <5s <1s ES93CN7Inventory turnoverTime30 Days 16 DaysMinimize Importance: 1=must have, 2=nice to have, 3=preference only Marginal Value: Minimal improvement value Ideal Value: Best case scenario given constraints

7. Project Timeline Planned Schedule of MSD by Sub-System Weeks Sub - System1234567891011121314151617181920 Obtain baseline data Proposed Facility Layout Cost Analysis of Facility Layout Weld Booths Hydro-Table Consignment and VMI Inventory Tubing and Instrumentation Cutting, Bending, and Cleaning Final Assembly Planned schedule On schedule Behind schedule

8. Risks and Contingencies Risk Item 1 SeverityProbabilityOwnerStatus and/or Contingency PlansDecision Date Team unavailable to travel on Fridays due to weather or another extenuating circumstances (Schedule Impact) Low ColinCody, Colin, Duke & Eric will go on Wednesday and Jimmy will be unable to go Weekly (by Thursday night or Friday morning) Worker Resistance to change (Performance Impact) Medium AllShow improvements quickly in the process, possible training on new systems implemented. Changes in one process disrupt subsequent processes (Performance Impact) Low AllProper planning and evaluation prior to implementing any changes within the processes. As occur Increased cost to production (Cost impact) HighLowAllProper planning and evaluation prior to implementing any changes within the processes. As occur Necessary data not available (Performance Impact) HighMediumEricBase off of previous data acquired, similar products, D-R staff estimation. As occur No improvement to facility made in 22 week period (Performance Impact) MediumLowColin /Eric Proper planning/scheduling ensuring the team does not try to do too many changes within the given timeframe. Stay on top of team members so work gets accomplished. Weeks 5, 10, 15, 20 Dresser-Rand Staff Availability (Performance & Schedule Impact) MediumLowColinPlan of action in place for D-R assistance.Week 3

9. Overview of Plant 1 Not in Packet

10. Weld Booths

11. System Needs Primary Needs: 1.Standardize weld booth a)Better use of space by eliminating unnecessary equipment/materials b)Allow welders the flexibility of using any weld booth 2.Install visual controls to ensure welder is always busy 3.Construct exhaust system to remove gasses generated from welding Secondary Needs: 1.Improved safety 2.Make improvements as see fit 3.Acquire tools frequently stolen Weld Booths

12. Suggested Changes 1.Standardized Weld booth (next slide) 2.Eliminate argon tanks 3.Dig trenches for cords 4.Install visual control a)Make pipe-fitters aware of when/which welder needs work b)Make pipe-fitters aware of when welder has completed work 5.Simple exhaust system Results 1.Standard weld booth approved by customer 2.Eliminate the need for welders to go outside and fill up argon tanks (currently 2x per week). Creating an increased installation cost. 3.Eliminate cords from lying along the floor -> safety hazard 4.Visual controls in development, could prove to be a significant savings 5.Welding curtains remain closed -> Safety Work to Date Weld Booths

13. Standard Weld Booth Work Table ViceStick Rod Rollers Quench Tank Power Supply Welder Rod Oven Lockers Oscillating Fan Cell 1Cell 2 Curtain Entrance Staging Area *Proposed Equipment (listed in red)

14. Weld Booths Risks and Contingencies Risk Item 1 SeverityProbabilityOwnerStatus and/or Contingency Plans Worker resistance to changeLowHighTeam/ Dave Couple of workers will complain as their “luxuries” may be taken away, overall changes are minor. Uniform weld booth eliminates ability to do some jobs Low TeamSince the weld booths will be paired and composed of curtains, one weld booth can easily become two to work on bigger pieces of pipe. Operator differences in operating hand (left handed vs. right handed) Medium EricCurrently there is only one left handed operator and his weld table is positioned in the left hand corner of the booth. Items within booths should reach tables if positioned in either corner.

15. Moving Forward – Develop visual control system for interaction between welders and pipe fitters – Come to consensus on orientation of weld booths – Determine cost of implementation – Take further look at creating an exhaust system – Direct piping of argon – New location for stick rod storage Weld Booths

16. System Needs Primary Needs: 1.Increase floor space to allow for additional product to be placed on the assembly floor. 2.Ensure worker safety with improved floor layout Secondary Needs: 1.Create standard weld booths and work stations 2.Improved flow of material 3.Install visual controls for better efficiency, flow of parts, etc in the shop 4.Eliminate any unused or unnecessary equipment, inventory, processes 5.Make improvements as see fit 6.6S (Sort, Set in order, Shine, Standardize, Sustain, Safety) Facility Layout

17. Piping and Packaging Area Current State Final Assembly Consignment VMI Tubing and Instrumentation Weld Booths Cutting, Bending, Cleaning

18. Proposed Layout Facility Layout Weld Booths Final Assembly VMI Consignment Cleaning Cutting & Bending Tubing and Instrumentation

19. Suggested Changes 1.Move weld booths off of assembly floor a)Establish standard size for weld booths 2.Place VMI in old break room 3.Created additional break room at Col 8B 4.Establish isle between final assembly and welding area 5.Eliminate old equipment 6.Produce new area for conduit cell 7.Move records off floor to inspection Results 1.Increased floor space of assembly area by approximately 23% (Eng Spec 15-40%) 2.Safer use of “break room” space. Eliminates smoking (fire) hazard within facility 3.Creates one location for weld booths Work to Date Facility Layout *Move has not yet taken place

20. Facility Layout Risks and Contingencies Risk Item 1 SeverityProbabilityOwnerStatus and/or Contingency Plans Worker resistance to changeLowHigh Team/ Dave Most of this risk will fall on the supervisor of the area – Dave Increased material handling distances LowMediumTeam Minimize. Tradeoff with floor space based on constraints in the system. Changes in individual cells creates change in overall layout MediumLowTeam Will focus on optimizing the processes and issues within each subsystem while maintaining their effect on overall layout. Cost of move is too great for management HighLowEric Proposed solutions will incorporate changes with small financial penalties. Timeline for implementation of move not feasible Low Colin Currently no timetable on when the movement of cells will occur. Pipefitters and welders are further distance apart, potential for more errors LowMediumTeamLittle interface of information currently goes on between pipefitters and welders. Number of trips during the day are infrequent.

21. Moving Forward – Determine cost of implementation – Propose final layout to D-R management – Develop schedule of implementation Facility Layout

22. Hydro Table

23. System Needs Primary Needs: 1.Safety mechanism to prevent hazard of exploding high pressure pipe 2.Allow worker to face direction of testing 3.Improve control layout to designate high and low pressure ranges Secondary Needs: 1.Better coding of pressurized hose 2.Improved storage of pipe fittings Hydro Table

24. Suggested Changes 1.Two Improved layout designs developed 2.Move gauge panel to east end of table facing towards the part being tested 3.Concept #1: Mount panel at an angle for more visibility while testing 4.Concept #2: Mount the Panels at chest height so that the worker can see the panel and the part at the same time 5.Enclose hydrotable with removable safety cage sections to protect worker in the event of test pipe failure. Work to Date Hydro Table

25. Concept #1

27. Concept # 2

29. Hydro Table Risks and Contingencies Risk Item 1 SeverityProbabilityOwnerStatus and/or Contingency Plans Difficulty in accessing parts on hydro table MediumLowCodyCreate safety design to allow 360 degree access to hydro table Upon changing coding scheme worker may result to old code scheme Low TeamMake sure coding scheme is visual Worker resistance to changeLow TeamAllow workers to approve of design prior to implementation

30. Moving Forward – Finalize concepts #1 and #2 – Develop additional concepts based on worker feedback – Analyze the mechanics of failure for safety cage – Develop overall cost for new panel components and safety cage. Hydro Table

31. Consignment and VMI

32. System Needs Primary Needs: 1.A system/process to control the removal of parts from consignment and VMI 2.Better process to help with the tracking of parts being removed Secondary Needs: 1.Determine if there are unnecessary part within both inventory locations 2.Eliminate the need for a 2-3 month audit Constraints: 1.Cannot assign a person to manage consignment because it is considered indirect labor (charging issue) Consignment and VMI

33. Moving Forward Only have the needs of each function at this point Consignment and VMI

34. Questions?