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V O L V O
LEAN TRANSFORMATION
by Julian Kalac, P.Eng
VOLVO EATS RACK LEAN TRANSFORMATION  by Julian Kalac, P.Eng
EATS RACK
VOLVO EATS RACK LEAN TRANSFORMATION  by Julian Kalac, P.Eng
VOLVO EATS RACK LEAN TRANSFORMATION  by Julian Kalac, P.Eng
 VOLVO Patented Design
 EATS-Exhaust After Treatment System
 EATS uses Selective Catalytic Reduction SCR and a Diesel Particulate
Filter DPF to filter & convert (treat) Nox into CO2, which exits
through the exhaust stack
 EATS Rack , made by Mancor Automotive, is the integrated final
product assembly of SCR and DPF
• EATS standard cost = $570/pc, (material=$180, Labour= $380)
• 2013 Annual volume = 2000 units (8/day, 40/week)
• 2014 demand increased from 2000 to 3000 units, (8 to 12
units/day)
• Mancor batch & queue production unable to keep up with
increased Volvo demand due to multiple issues
110 +/-5 mm
• Over 300 components
all made in house
• All Welded together
• Squareness must be
within 5mm top to
bottom
• Volvo customer
• Mounted around truck
cabin
Parts Fitting
Problem areas
Manufacturing and Assembly Concerns
1. Pipe vs Frame Brkt width
width +/- 5mm
2. Pipe to Frame Bracket- Joint
Integrity
3. Fully Groomed w/ DPF/SCR
4, Supplier/MMD/or Both
5. Positioning stops on DPF/SCR
+/-5 mm
1. Volvo plant shut down for 2 days due to EATS
shortage costing $50K/day penalty
2. Production unable to meet Volvo increased
demand of 50% from 40 to 60pcs/week,
3. Unresolved product/design issues causing
30% Internal Quality reject rate , and limiting
max throughput 8 units/day on 2 shifts
4. Volvo lead time = 3 days, Mancor actual cycle
time= 4.5dasy for 1 EATS rack,
1. Redesign parts to eliminate profile
gaps and standardize
2. Product quality by 80%, reduce reject rate
from 42% to <5%
3. Product Lead time by 50% (from 4 to 2
days)
4. Productivity by 50%, from 8-12pcs/day
Estimated Savings= $600K to $800K
1. Internal Final Inspection Quality Reject Rate
=31% being reworked in-line
2. NO PFD, VSM , NO FMEA,
3. Production running Batch & Queue with
high WIP
4. Max Production Capacity 8pc/day using 2 shifts
(6 people)
5. Batch Production with high WIP > 33
1. VOLVO FINAL ASSY DESIGN,
2. Internal drawings incorrect
3. 3D Model incorrectly exported into 2D CAD
drawings, incorrect nominal dimensions and
tolerances
4. No revision history, drawings not updated.
Component parts being modified daily
grinding or welding
5. Product design Issues causing excessive
Non-Value Add (NVA) welding to fit parts
1. TACKING = 90min (50min modifying
components fitting + 40min welding filling gaps
between parts)
2. ROBOT WELDING= 90min (20min robot + 45 min
touch up)
3. SHOT BLASTING= 15MIN/PC
4. FINAL INSPECTION 33% REJECT RATE
5. JOINING = 75MIN -(joining + reworking
defects)
6. PAINTING= 45MIN
 TOTAL ACTUALL TIME =315MIN = 5.2HRS/PC
 STANDARD TIME= 3HRS/PC
VOLVO EATS RACK LEAN TRANSFORMATION  by Julian Kalac, P.Eng
All 3 parts need to be aligned and welded
Currently being done without any support fixture.
1
32
VOLVO EATS RACK LEAN TRANSFORMATION  by Julian Kalac, P.Eng
VOLVO EATS RACK LEAN TRANSFORMATION  by Julian Kalac, P.Eng
0.5 to 1” gaps had to be welded
before fitting
PROFILE FITTING CAUSING ¾” WELD
VOLVO EATS RACK LEAN TRANSFORMATION  by Julian Kalac, P.Eng
VOLVO EATS RACK LEAN TRANSFORMATION  by Julian Kalac, P.Eng
VOLVO EATS RACK LEAN TRANSFORMATION  by Julian Kalac, P.Eng
1. Redesigned 5 main SCR and DPF parts which
reduced profile gaps from 15mm to < 1mm
a) Reduced Non-Value Add welding by 54”
b) Reduced overall fit & tack cycle time by 70 min
2. Validated new design in production on 240
pcs, 4 different runs with no issues.
3. Created an ECN, with As-Built/Red line
drawings with revised part profile dimensions
and obtained Volvo Engineering approval
4. Trained in-house design engineers on Design
Validation and Product Reliability testing,
DFMEA and PFMEA
5. Developed DFSS templates for future use
Developed Checking Fixture
for tubes formed
EATS PROCESS FMEA IMPROVEMENTS
Item # PROCESS FAILURE MODE Part # Improvement
Reduced
Manual
welding
(Inches)
Cycle Time
reduciton
(min)
1
Part profile issues causing fitting problems in
production
21290535
Redesigned shape/profile to match
the tube profile
12 15
2 SCR bracket does not fit, causing 6" NVA welding 21293745
Improved profile to match the tube
profile
6 5
3
Part profile issues causing 8"x 1/2" non-value add
manual welding
21294709 same as abobe 8 10
4 Part does not fit, have to grind and weld part 21602557 same as abobe 10 20
5 DPF channel manually welded after robot 828/829/830/832
Transferred welding onto robot.
Reduced cycle time by 20min
18 20
NO GAPS
VOLVO EATS RACK LEAN TRANSFORMATION  by Julian Kalac, P.Eng
REDESIGNED ROBOT
WELDING FIXTURE
VOLVO EATS RACK LEAN TRANSFORMATION  by Julian Kalac, P.Eng
Eliminated 12” non-value add welding
BEFORE IMPROVEMENT
Part# 21290534
¾” Fillet Weld
Part# 21290534
Reduced 8mm gap to < 1MM GAP
8mm gap
VOLVO EATS RACK LEAN TRANSFORMATION  by Julian Kalac, P.Eng
WEEK OF DATE EATS PRODUCTION SCHEDULE
START TIME= 7:00
WORK ORDER
PART
NUMBER
QTY TAKING COMPLETED ROBOT 7 COMPLETED JOINING COMPLETED
PAINT LINE
COMPLETED
FG
1ST CART 1ST CART 1ST CART 1ST CART 4PCS
WOXXXXXX 222148XX 4PCS 9:00 11:30 14:00 17:00 17:00
2ND CART 2ND CART 2ND CART 2ND CART 8pcs
8PCS 11:00 14;00 16:30 19:30 19:30
3RD CART 3RD CART 3RD CART 3RD CART 12PCS
12PCS 13:00 17:30 20:00 22:30 22:30
1 CART= 4PCS EVERY 3HRS
 Transformed Batch & Queue production into
Lean 1pc Continuous Flow with PULL SYSTEM
 Redesigned critical to quality C2Q components
& obtained VOLVO approval
 Redesigned tacking fixtures, and robot welding
fixtures
 Increased Robot welding utilization from 30%
to 97% , with consistent parts eliminating
rework and manual welding
 Implemented in-process QUALITY inspection
 Developed Master Sample for welding Quality
purposes visible to everyone on the floor
VOLVO EATS RACK LEAN TRANSFORMATION  by Julian Kalac, P.Eng
AFTER LEAN TRANSFORMATION
VOLVO EATS RACK LEAN TRANSFORMATION  by Julian Kalac, P.Eng
MASTER SAMPLE QA
PURPOSES
VICTOR-- LEAD HAND
PAINT LINE KPI BOARD
VOLVO EATS RACK LEAN TRANSFORMATION  by Julian Kalac, P.Eng
0
5
10
15
20
25
0 2 4 6 8 10 12
week
% Rejects/week
(Internal)
Improved Final Quality
Yield from 77% to 99.9%
0
5
10
15
20
25
30
35 EATS WIP BY WEEK
TOTAL WIP UCL WIP LCL WIP
148
176 179
213
261
180
JAN FEB MARCH APRIL MAY JUNE
EATS 2014 YTD FG/Month
 We maintained ZERO WO LATES (since April 21, 2014)
 We reduced quality reject rate from 30% down to 3%
 We reduced total lead time from 4.5 down to < 2 days
 We reduced total cycle time from 3Hrs to 0.7Hrs/pc
 We reduced our WIP from 33 pcs to 12pcs in < 2 weeks
We achieved our project objectives in a 3 month period, ,
something that was considered not possible before !!
 Increased Productivity from 8-12/day = 40-60/week, 20
units/week
1000 units/year , Annual volume = 3000 units/year
 Sale price = $1500/pc
 Increased Revenue = $1500*1000pcs = $1.5MIl/year
 66% GM = $1MIl GROSS MARGIN
 Old cost/unit = $490/pc
 New cost/unit=$342/pc=>=$150/unit savings x 3000pcs=
$450K
 $1.5Mil – ($342 x 3000)= $512K
 Total savings= $450K + $512K=
$960K
VOLVO EATS RACK LEAN TRANSFORMATION  by Julian Kalac, P.Eng

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VOLVO EATS RACK LEAN TRANSFORMATION by Julian Kalac, P.Eng

  • 1. J u l y1 V O L V O LEAN TRANSFORMATION by Julian Kalac, P.Eng
  • 6.  VOLVO Patented Design  EATS-Exhaust After Treatment System  EATS uses Selective Catalytic Reduction SCR and a Diesel Particulate Filter DPF to filter & convert (treat) Nox into CO2, which exits through the exhaust stack  EATS Rack , made by Mancor Automotive, is the integrated final product assembly of SCR and DPF • EATS standard cost = $570/pc, (material=$180, Labour= $380) • 2013 Annual volume = 2000 units (8/day, 40/week) • 2014 demand increased from 2000 to 3000 units, (8 to 12 units/day) • Mancor batch & queue production unable to keep up with increased Volvo demand due to multiple issues
  • 7. 110 +/-5 mm • Over 300 components all made in house • All Welded together • Squareness must be within 5mm top to bottom • Volvo customer • Mounted around truck cabin
  • 9. Manufacturing and Assembly Concerns 1. Pipe vs Frame Brkt width width +/- 5mm 2. Pipe to Frame Bracket- Joint Integrity 3. Fully Groomed w/ DPF/SCR 4, Supplier/MMD/or Both 5. Positioning stops on DPF/SCR +/-5 mm
  • 10. 1. Volvo plant shut down for 2 days due to EATS shortage costing $50K/day penalty 2. Production unable to meet Volvo increased demand of 50% from 40 to 60pcs/week, 3. Unresolved product/design issues causing 30% Internal Quality reject rate , and limiting max throughput 8 units/day on 2 shifts 4. Volvo lead time = 3 days, Mancor actual cycle time= 4.5dasy for 1 EATS rack,
  • 11. 1. Redesign parts to eliminate profile gaps and standardize 2. Product quality by 80%, reduce reject rate from 42% to <5% 3. Product Lead time by 50% (from 4 to 2 days) 4. Productivity by 50%, from 8-12pcs/day Estimated Savings= $600K to $800K
  • 12. 1. Internal Final Inspection Quality Reject Rate =31% being reworked in-line 2. NO PFD, VSM , NO FMEA, 3. Production running Batch & Queue with high WIP 4. Max Production Capacity 8pc/day using 2 shifts (6 people) 5. Batch Production with high WIP > 33
  • 13. 1. VOLVO FINAL ASSY DESIGN, 2. Internal drawings incorrect 3. 3D Model incorrectly exported into 2D CAD drawings, incorrect nominal dimensions and tolerances 4. No revision history, drawings not updated. Component parts being modified daily grinding or welding 5. Product design Issues causing excessive Non-Value Add (NVA) welding to fit parts
  • 14. 1. TACKING = 90min (50min modifying components fitting + 40min welding filling gaps between parts) 2. ROBOT WELDING= 90min (20min robot + 45 min touch up) 3. SHOT BLASTING= 15MIN/PC 4. FINAL INSPECTION 33% REJECT RATE 5. JOINING = 75MIN -(joining + reworking defects) 6. PAINTING= 45MIN  TOTAL ACTUALL TIME =315MIN = 5.2HRS/PC  STANDARD TIME= 3HRS/PC
  • 16. All 3 parts need to be aligned and welded Currently being done without any support fixture. 1 32
  • 19. 0.5 to 1” gaps had to be welded before fitting
  • 24. 1. Redesigned 5 main SCR and DPF parts which reduced profile gaps from 15mm to < 1mm a) Reduced Non-Value Add welding by 54” b) Reduced overall fit & tack cycle time by 70 min 2. Validated new design in production on 240 pcs, 4 different runs with no issues. 3. Created an ECN, with As-Built/Red line drawings with revised part profile dimensions and obtained Volvo Engineering approval 4. Trained in-house design engineers on Design Validation and Product Reliability testing, DFMEA and PFMEA 5. Developed DFSS templates for future use
  • 26. EATS PROCESS FMEA IMPROVEMENTS Item # PROCESS FAILURE MODE Part # Improvement Reduced Manual welding (Inches) Cycle Time reduciton (min) 1 Part profile issues causing fitting problems in production 21290535 Redesigned shape/profile to match the tube profile 12 15 2 SCR bracket does not fit, causing 6" NVA welding 21293745 Improved profile to match the tube profile 6 5 3 Part profile issues causing 8"x 1/2" non-value add manual welding 21294709 same as abobe 8 10 4 Part does not fit, have to grind and weld part 21602557 same as abobe 10 20 5 DPF channel manually welded after robot 828/829/830/832 Transferred welding onto robot. Reduced cycle time by 20min 18 20
  • 33. Part# 21290534 Reduced 8mm gap to < 1MM GAP 8mm gap
  • 35. WEEK OF DATE EATS PRODUCTION SCHEDULE START TIME= 7:00 WORK ORDER PART NUMBER QTY TAKING COMPLETED ROBOT 7 COMPLETED JOINING COMPLETED PAINT LINE COMPLETED FG 1ST CART 1ST CART 1ST CART 1ST CART 4PCS WOXXXXXX 222148XX 4PCS 9:00 11:30 14:00 17:00 17:00 2ND CART 2ND CART 2ND CART 2ND CART 8pcs 8PCS 11:00 14;00 16:30 19:30 19:30 3RD CART 3RD CART 3RD CART 3RD CART 12PCS 12PCS 13:00 17:30 20:00 22:30 22:30 1 CART= 4PCS EVERY 3HRS
  • 36.  Transformed Batch & Queue production into Lean 1pc Continuous Flow with PULL SYSTEM  Redesigned critical to quality C2Q components & obtained VOLVO approval  Redesigned tacking fixtures, and robot welding fixtures  Increased Robot welding utilization from 30% to 97% , with consistent parts eliminating rework and manual welding  Implemented in-process QUALITY inspection  Developed Master Sample for welding Quality purposes visible to everyone on the floor
  • 40. MASTER SAMPLE QA PURPOSES VICTOR-- LEAD HAND PAINT LINE KPI BOARD
  • 42. 0 5 10 15 20 25 0 2 4 6 8 10 12 week % Rejects/week (Internal) Improved Final Quality Yield from 77% to 99.9%
  • 43. 0 5 10 15 20 25 30 35 EATS WIP BY WEEK TOTAL WIP UCL WIP LCL WIP
  • 44. 148 176 179 213 261 180 JAN FEB MARCH APRIL MAY JUNE EATS 2014 YTD FG/Month
  • 45.  We maintained ZERO WO LATES (since April 21, 2014)  We reduced quality reject rate from 30% down to 3%  We reduced total lead time from 4.5 down to < 2 days  We reduced total cycle time from 3Hrs to 0.7Hrs/pc  We reduced our WIP from 33 pcs to 12pcs in < 2 weeks We achieved our project objectives in a 3 month period, , something that was considered not possible before !!
  • 46.  Increased Productivity from 8-12/day = 40-60/week, 20 units/week 1000 units/year , Annual volume = 3000 units/year  Sale price = $1500/pc  Increased Revenue = $1500*1000pcs = $1.5MIl/year  66% GM = $1MIl GROSS MARGIN  Old cost/unit = $490/pc  New cost/unit=$342/pc=>=$150/unit savings x 3000pcs= $450K  $1.5Mil – ($342 x 3000)= $512K  Total savings= $450K + $512K= $960K