B. O. S.

1. B. O. S. Business Operating System

2. B.O.S. DEFINITION • BOS is a practical and simple approach to coordinating key business and operating objectives with real projects and activities. • BOS also provides a practical and simple approach to collectively use the tools we have discussed.

3. B. O. S. CHART Is a one page chart showing data trends identifying key factors, tracking projects and monitoring improvements.

4. WHY USE THE B. O. S. CHART TOOL? • B. O. S. charting is a standard tool used to support visual control • One page summary which facilitates management at a glance. • Ensures real activities are occurring to improve the areas identified as important to the company • Is an excellent communications tool • to employees • to management

5. Key Measurable • Target • Trend Line Improvement Activities • Data Analysis • Pareto Improvement Tracking BOS CHART FORMAT

6. BOS Key Measurable: PPM - Steel Can Assembly Cell Ref # Description Resp. End Date 1 Redesign finished goods packaging AM 7/18/95 Procure new component parts 2 JK 6/30/96 containers 3 Improve weld in process weld SL 7/24/95 monitoring system 4 Replace current controller on paint GA 9/20/95 system Ref # Description Jan Mar May Jul Sept Damaged 1 51 48 45 39 5 Assembly 2 20 20 18 20 19 Cracked Casing 3 Broken Weld 19 17 21 18 1 4 Paint Blister 14 19 18 10 14

7. BOS IMPLEMENTATION • Identify key measureables • Brainstorm • Analyze data • Pareto analysis works well • List Improvement activities • Fishbone diagrams • Track improvement activities • Unique measures

8. Fishbone Diagrams • Lists the possible causes of a problem by considering the following areas • Man • Methods • Materials • Machines • Environment

9. Fishbone Diagrams • Continue to ask the Question Why until there is a consensus that the root cause has been uncovered 5 Why's Problem Why Why Why Why Why Root Cause

10. Operator Machine Broken tool Fishbone Diagram Training Calibration l Fatigued Damaged Assembly Out of spec Ergonomics Environment Wrong Material Methods

11. Countermeasures • Actions taken to ensure that root causes do not resurface at a later date. • Examples of countermeasures are • Error proofing • Gauging and Fixturing • Supplier Certification

12. Error Proofing • Restricts the ability to incorrectly assemble a product • Forms of error proofing in our products are; • Tabs • Notches • Unsymmetrical Features

13. Gauging and Fixturing • Used when it is determined that an operation may introduce excessive variation to the final product • Common examples are; • Weld Fixtures • Final assembly gauges and fixtures • Leak check fixtures

14. Supplier Certification • How do we control the parts that we buy from outside sources? • Part Number Certification • Supplier Certification

15. Tracking Downtime • Important tool for determining the best process for producing the product • Areas to consider when analyzing downtime; • Process equipment • Production Associates • Material • Methods • Work Area

16. Process Equipment • Downtime here may indicate that the equipment may need to be refurbished, updated or even replaced to be capable of producing an acceptable product

17. Production Associates • Downtime in this area may indicate: • Training needs • Lack of knowledge of acceptable product • Incorrect line staffing

18. Material • If downtime is related to material the following may be true; • The material may not be the best suited for the process • The material quality needs to be improved

19. Methods • Downtime in this area indicates excessive travel and or wasted motion as well as • Equipment layout concerns • Process bottlenecks

20. Work Area • Downtime may also be due to environmental problems • Is it too hot or cold? • Is there sufficient lighting? • Is the work area safe?

21. Downtime • Other methods of tracking downtime are used, they are; • Live production counts • Andon alarms • Downtime Clocks • These are all excellent tools for at a glance management

22. Scrap Tracking • Used in conjunction with other tools to determine the process problems • Red Box Method of scrap tracking • Identifies suspect product • Records all defects • Corrective action implemented and logged for future reference

23. DEFECTIVE PART CAN IT BE REPAIRED SET-UP IN LESS THAN 1 &/OR SUPERVISOR CYCLE DETERMINE CORRECTIVE & INTERIM ACTION IN ORDER TO RESUME PRODUCTION & DOCUMENT ACTIONS REPAIR PART CONTINUE NORMAL PRODUCTION SET-UP &/OR SET-UP INFORMS SUPERVISOR INSPECTOR OF DECIDE IF PART REASON FOR REPAIRABLE SCRAP REPAIR PARTS REFER TO WORK INSTRUCTION 13.1.8, "SCRAP & SALVAGE" CONTINUE NORMAL PRODUCTION

24. LET’S REVIEW WHAT & WHY • B O S = • BUSINESS OPERATING SYSTEM • B O S is a practical and simple approach to coordinating key business and operating objectives with real projects and activities

25. B O S IMPROVES COMMUNICATION • Fosters management at a glance • Insures communication of key goals to workers, management, visitors, everyone • Allows operators to communicate activities and progress to management • Facilitates visual control

26. BOS REQUIRES ACTION • Proper use requires specific action to address key objectives • Includes tracking progress of activities • Demonstrates organization’s commitment to improvement activities

27. CONCLUSION • These tools are simple to use • They can be implemented in any area at Arvin • B.O.S. charting visibly closes the loop from the measure and its cause to the actions being taken to improve

28. Report Out Deliverables • Present a B.O.S. Chart for Report Out Exercise 7. Use the standard 4 quadrant format.

29. BOS Chart