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Applying knowledge management tools/ concepts to solve a company problem in Schaffner.
AB Goh
9 January 2011.
Presentation title

2. Fig. 1.0 - Choke Components Plastic Housing Toroid Copper Wire
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Fig Choke Components
Plastic Housing
Toroid
Copper Wire
Steel Wire
Separator
Resin
Presentation title

3. The Choke products is also one of Schaffners’ revenue generators.
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Applying knowledge management tools to solve a company problem in Schaffner.
Figure 1.0 shows the Choke products which are the traditional strong hold products of Schaffner.
At the peak, a few years ago Schaffner produces between 1 million to 1.5 millions a year.
The Choke products is also one of Schaffners’ revenue generators.
In the year Schaffner sold slightly above half a million pieces and 2009 , Schaffner sold much less than half a million pieces.

4. Presentation title
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Applying knowledge management tools to solve a company problem in Schaffner.
The main problem is ;
Schaffner is losing market share and is being threatened that the entire Choke business will be wiped out within two to three years.

5. Schaffner’s prices are above the competitors
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Problem; Schaffner is losing market share and is being threatened that the entire Choke business will be wiped out within two to three years.
Schaffner’s prices are above the competitors
No priority for salesmen to sell
Not designing to customers’ requirements 3%
>40%
>5%
Losing market share on Choke products
>44%
>5%
Schaffners’ Chokes have lesser performance features than competitors
Unhappy customers
>3%
Customers shifting to new technology platform
Fig. 2.0

6. Methods Man 40% Machine Materials Fig. 2.1
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Problem; Schaffner is losing market share and is being threatened that the entire Choke business will be wiped out within two to three years
Too much walking around 1
Methods
Man 7
40%
Throughput time too long
High content of manual operations 2 8
Cycle time too long as compared to standard
Schaffner’s prices are above the competitors
Workers are not ergonomically positioned 1 1 1
Work sequences not optimised. 3 9
Cost reduction by 25%
Related machines are in different floors/ locations causing too much transportation
No cost reduction targets with suppliers 4 10
use over specified materials resulting buying expensive materials 5
Machines are not fully automated
Still buy materials from Europe ( costly) 6 11
Machine
Materials
Fig. 2.1

7. Poor on- time deliveries
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Problem; Schaffner is losing market share and is being threatened that the entire Choke business will be wiped out within two to three years
Quality issues 1
Poor solder joints 3 2
scratches
Potting materials not fully hardened
44%
Unhappy customers
Too long to pick materials at warehouse
to fill a work order 4 7
Long set – up times required before
Production can start 5
Suppliers not delivering materials on-time
Inflexibility of production lines 6
Poor on- time deliveries
Fig. 2.2

8. Presentation title
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Reorganise the work flow from traditional production conveyor lines to lean cell concepts.
By applying Lean cell concepts , the following causes/ actions will be taken care of;
Fig.2.1
Cause #1
Cause #3
Cause #7
Cause #8
Cause #9
Cause #10.
Fig.2.2
Cause #4.
Cause #5
Cause #6.

9. Application of LEAN CELL CONCEPTS
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Application of LEAN CELL CONCEPTS
First , the entire process is mapped out as shown in fig.2.3.
All the processes are studied by removing the 7 wastes in manufacturing.
Figures 3.0 A to 3.0D show the application of lean cell concepts.
Fig. E is the final lean cell layout.
The lean cell concepts will reorganise all the process stations close together with the objective of a smooth and ergonomic flow.
One piece flow is applied.
Materials are at the point of use.
It is a two bin system .

10. Fig. 2.3 Choke Process Flow Winding Pin Insertion
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Winding
Pin Insertion
Cutting & Wave Dipping
Assembly
Soldering
Fig. 2.3 Choke Process Flow
Moulding
Baking
Hi-Volt test
Test
Printing
Packing

11. 7 Wastes In Manufacturing
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7 Wastes In Manufacturing
Over
Production
Unnecessary
motion
Over
Processing
Rejects and
Defects
Seven Wastes
Inefficient
Transportation
Waiting
Times
Unnecessary
Stock
Fig.3.0 A

12. Fig.3.0B 100 meters High inventory hides the problem
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High inventory hides the problem
High water level conceals the rocks
UNSTABLE
DEMAND
LONG SET UPS
100 meters
GENERATING
DEFECTIVE
PRODUCTS
REWORK
DELAY IN
DELIVERIES
POOR
HOUSEKEEPING
HIGH MANPOWER
REQUIREMENTS
MACHINE
BREAKDOWNS
MIXED MATERIALS
Fig.3.0B

13. Fig.3.0C 50 meters Low inventory exposes the problem
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Low inventory exposes the problem
Low water level reveals the rocks
UNSTABLE
DEMAND
LONG SET UPS
GENERATING
DEFECTIVE
PRODUCTS
50 meters
REWORK
DELAY IN
DELIVERIES
POOR
HOUSEKEEPING
HIGH MANPOWER
REQUIREMENTS
MACHINE
BREAKDOWNS
MIXED MATERIALS
Fig.3.0C

14. Value Adding Processes
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Value Adding Processes
Smooth cellular flow by connecting the relevant
processes together:
Operation 1
Customer
Raw Material
Operation 2
Operation 3
Operation 4
Operation 5
Continued from previous
Motion
Motion is a waste
Picking up a part is different than going to pick up a part
Use natural limited motion
Use physics
Gravity
Ergonomics
Product defects
Obvious waste of cost of product
Opportunity cost of resources spent to make the defect
Loss of customer satisfaction/business
Internal defect
Not using the talent, knowledge and experience of all people is waste
Fig.3.0D
One Piece Flow Production in a Cellular Layout:
Significantly reduces transportation, inventory, and waiting time while improving quality, delivery, and costs.
Presentation title

15. Presentation title
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Fig. E Choke Lean Cell

16. Use Nonaka model for automating the following process operations;
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Problem; Schaffner is losing market share and is being threatened that the entire Choke business will be wiped out within two to three years
By automating the process operations the following causes / actions will be solved.
Fig 2.2
Cause # 2
Cause #11
Fig. 2.2
Cause # 2.
Use Nonaka model for automating the following process operations;
Winding process.
Cutting and wave dipping process.
Pin- insertion process.
Assembly process.
Moulding process.
This will cut cycle time by at least 35% but most important is the quality improvements ( yield and less scrap).

17. Fig. D-1 Choke Process Flow
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Fig. D-1 Choke Process Flow
Process
Time(sec)
Picture
Automate the winding process
68.45
Automate Cutting & Wave Dipping
38.34

18. Fig. D-3 Choke Process Flow
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Fig. D-3 Choke Process Flow
Process
Time(sec)
Picture
Automate Pin Insertion process
1.9
Automate Assembly process
36.84

19. Fig. D-2 Choke Process Flow
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Fig. D-2 Choke Process Flow
Process
Time(sec)
Picture
Soldering
11.67
Automate Moulding
process
2.81

20. Fig. 1.0 – four modes of knowledge conversion
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Fig. 1.0 – four modes of knowledge conversion

21. Yr 1, tacit to tacit = socialization
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Yr 1, tacit to tacit = socialization
Target is to automate winding fully
tacit to
explicit
externalization
socialization
tacit 3 2 1
from
internalization
combination
explicit
Figure 2.0 – 3 years of spiraling knowledge

22. Knowledge management – Nonaka model
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Knowledge management – Nonaka model
Yr 1 = tacit to tacit
SOCIALIZATION( Fig. 2.0)
Grand theme; maximachine/minihuman
Automate winding
Socialization;
How- To
Get the experts and most experienced winders for a brain storming session.
Informal gatherings.
Off- site meetings for 3 days.
Building samples, experimenting and sharing etc.
First 4 months – no formal reviews , just discussion.

23. Knowledge management – Nonaka model
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Knowledge management – Nonaka model
Yr 2- tacit to explicit – Externalization
-automate cutting and dipping
tacit to
explicit
externalization
socialization
tacit 3 2 1
from
internalization
combination
explicit
Figure 3.0 – 3 years of spiraling knowledge

24. Knowledge management – Nonaka model
Presentation title
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Knowledge management – Nonaka model
Yr 2 = tacit to explicit
EXTERNALISATION (Fig. 3.0)
Grand theme; maximachine/minihuman
Automate cutting and wave dipping
How – To
Document useful discussion, observations and experiments.
Mid – theme ; The cookie concept
Aims to produce chokes like cookies.
Understand how cookies are fully
automated and produced.
Consistency of the cookies produced.
Low cost production.
Easy packing

25. Knowledge management – Nonaka model
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Yr 3- explicit to explicit
- Combination
-Automate the assembly
Knowledge management – Nonaka model
tacit to
explicit
externalization
socialization
tacit 3 2 1
from
internalization
combination
explicit
Figure 4.0 – 3 years of spiraling knowledge

26. Knowledge management – Nonaka model
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Knowledge management – Nonaka model
Yr 3- explicit to explicit
COMBINATION (Fig. 4.0)
Automate the assembly
Grand theme; maximachine/ minihuman
Final theme; Everyone loves cookie.
How- To.
Exchange ideas and experiences.
Combine , sort and prioritize concepts of value.
Formal and informal communications.
Exchange visits with European colleagues.

27. Knowledge management – Nonaka model
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>Yr 4 explicit to tacit- Internalization-
- Continue automation of other operations
Knowledge management – Nonaka model
tacit to
explicit
externalization
socialization
tacit 6 4 3 2 1
from
internalization
combination
explicit
Figure 5.0 – 3 years of spiraling knowledge

28. Knowledge management – Nonaka model
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Knowledge management – Nonaka model
Beyond 3 Yrs- explicit to tacit
Continue automations of other operations
INTERNALIZATION (FIG. 5.0)
Grand theme; maximachine/ minihuman
How- To;
Verbalize ,constant interactions and informal groups gatherings.
Continue to document success stories and new learnings.
Alignment use ROFO MODEL
Encourage learning by doing
Mindset change and modification of behavior towards learning.

29. A X- bar , R chart is used to track the dimensions of the housing .
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Fig. 2.2 Quality issues – solve by implementing Total Quality management TQM
Fig. 2.2 Qualty issues
Cause # 1
Cause # 2.
This is solved by implementing SPC and multivari – charts as shown in Figures 6.0 A and 6.0 B.
A X- bar , R chart is used to track the dimensions of the housing .
A multi vari chart is used to track the solder defects and the scratches.
Cpk – process capability index of 2.0 is set as target. Fig. 6.0 C
A TQM approach is also applied throughout the company by incorporating training and development plan

30. Fig. 6.0 A -1 X- bar chart henry Time hrs Upper control limit 4 3 2
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Fig. 6.0 A -1 X- bar chart
Upper control limit 4 3
henry 2
Lower control limit 1 2 3 4 1
Time hrs

31. Fig. 6.0 A – 2 R- chart henry Time hrs Upper control limit 4 3 2
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Fig. 6.0 A – 2 R- chart
Upper control limit 4 3
henry 2
Lower control limit 1 2 3 4 1
Time hrs

32. RENAULT – SCHAFFNER’S MODEL OF RENAULT QUALITY SYSTEMS
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RENAULT – SCHAFFNER’S MODEL OF RENAULT QUALITY SYSTEMS
The Multi- Vari chart fig. 6.0B I II
III IV 5
defects 4 3 2 1
Time ( hrs or shifts)

33. Lower Specification Limit, LSL Upper Specification Limit, USL
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Process Capability Study
Lower Specification Limit, LSL
Specification mean
Upper Specification Limit, USL
61
31
Cpk = 1
Three Sigma (3) process
2700 ppm
32
62
Cpk = 2
Six Sigma (6) process
3 ppm
We need suppliers to have the same mindset and practice of Consistency
Fig . 6.0C

34. SUPPLIER MANAGEMENT PLAN( SMP)
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SUPPLIER MANAGEMENT PLAN( SMP)
SMP
By localisation of European parts.
Manage suppliers by developing merit points ;
Quality points.
Cost……………..20 points.
Delivery…………30 points.
On- time delivery targets are jointly set with suppliers.
Develop local suppliers that have materials that are less expensive than European materials. This can be achieved by changing the specification of materials with R&D.
The above actions will reduce materials costs by 18%.

35. Figures 7.0 A and 7.0 B show how the target is achieved.
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The final picture.
Figures 7.0 A and 7.0 B show how the target is achieved.

36. Methods Man 40% Machine Materials Fig. 7.0 A Solve by automation
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Solve by automation
solve by developing a supplier
management plan
Solve by lean cell
Too much walking around 1
Methods
Man 7
Throughput time too long
High content of manual operations
40% 2 8
Cycle time too long as compared to standard
Schaffner’s prices are above the competitors
Workers are not ergonomically positioned 1 1 1 3
Work sequences not optimised. 9
Cost reduction by 25%
Related machines are in different floors/ locations causing too much transportation
No cost reduction targets with suppliers 4 10
use over specified materials resulting buying expensive materials 5
Machines are not fully automated
Still buy materials from Europe ( costly) 6 11
Machine
Materials
Fig. 7.0 A

37. Poor on- time deliveries
Presentation title
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Problem; Schaffner is losing market share and is being threatened that the entire Choke business will be wiped out within two to three years
Solve by TQM
Quality issues 1
Poor solder joints
Solve by automation 3 2
scratches
Potting materials not fully hardened
Solve by supplier
Management plan
44%
Solve by lean cell
Unhappy customers
Too long to pick materials at warehouse
to fill a work order 4 7
Long set – up times required before
Production can start 5
Suppliers not delivering materials on-time 6
Poor on- time deliveries
Inflexibility of production lines
Fig. 7.0 B

38. Thank you very much for your attention.
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Thank you very much for your attention.
Any questions?