Dealer Information Dealer Project Information

Dealer Dealer Activity Value Improvement

DSD
Code Name Type Stream Activity Name

EAME DS L010 Avesco AG 6 Sigma Product Machine

Support Preparation
Process

AP DS J320 Tractors 6 Sigma Business Improving

Singapore Support Machine
Ltd. Invoicing Process

ADS - N D100 Carter RIW Product Improving

Machinery Support Cylinder Rebuild
Process

ADS - N H070 Cashman RIW Rental/Us Cashman Rental

Equipment ed Operations
Company
ADS - N N050 Hewitt RIW Parts Hewitt - Wabush
Equipment Operation RIW - Parts
Limitee s Operations

ADS - N D240 Louisiana RIW Machine Louisiana

Machinery Sales/ Machinery -
Co. Sales Inventory
Support Receiving &
Staging

AP DS T080 or Westrac RIW Machine WesTrac - New

T120 Pty. Ltd. Sales Machines
Quotation

AP DS T080 or Westrac RIW Product WesTrac - Quick

T120 Pty. Ltd. Support Changeover
(QCO) Event -
SV75
Dynamometer
(3500)

AP DS J540 WesTrac RIW Machine WesTrac China -

China Sales BCP/CCE PINS
AP DS T010 William RIW Business William Adams -
Adams Pty. Support & Order to Build
Ltd. Product Process
Support

ADS - S P340 CEMCOL VST Service D6 Repair

Operation Optimization
s

AP DS J560 Capital VST Product Capital Machine

Machinery Support (CML Taiwan) -
Ltd. 320 Series
Rebuild Process
ADS - S R080 Ferreyros VST Service Ferreyros -
S.A.A. Operation Mejorar los
s Procesos de
Recepcion y
Despacho en
Servicios

AP DS T080 or Westrac VST Product WesTrac - SV75

T120 Pty. Ltd. Support 3500 Rebuild
Process

EAME DS L080 or Zeppelin VST Product Zeppelin Power

L240 Oesterreich Support Systems - Engine
GMBH or Customization -
Zeppelin VST
Baumaschin
en GmbH
aler Project Information
Problem Goals

Avesco is losing sales in the Europe Y1 = Implementation of an efficient Machine

region to competitive dealers. They are
losing sales due to the strengthening of
the Swiss Franc vs. the Euro. Even
though Avesco is getting temporary
support from the Large Contractor
segment, we need to implement
efficiency improvements and increase
bottom line profitability.
Invoicing delays are creating
accounting problems for new and used
machine customers and shortened their
payment term period. Average time
taken for invoicing from machine
delivery to invoice dispatch is 12 days.
Additionally, uneven spread in the
invoicing process (where most of the
invoices were created at the end of the
month) is causing unneeded stress on
staff.
High volume billing days are negatively
Impacting time value and cash flow.
The high volume days are creating
"chokes" in the administrating
department. They are also creating
risks of failing to recover all billable
items before their deadlines. Also, Last
Day Labor to Invoice time is too long
and needs to be reduced.
Preparation Process with minimal waste and
optimal customer Value Added activity
Y2 = Continuous Improvement Process
implemented for People, Quality, Velocity, Cost
(PQVC)
X1 = Completed Current State VSM identifying
potential Waste
X2 = Implement multi-generation project plan to
improve and eliminate identified Wastes in the
process.
Y = Reduce invoicing cycle time to within 3 days
X1 = Adequate, accurate documentation and
information
X2 = Smooth flow of invoice volume
X3 = Standardize the process
X4 = Processing staff
Y = Reduce LDLI from 18 days to 10 days - 44%
reduction
X1 = Customer info at W.O. open
X2 = Expectation of Paperwork - Supplies
Recovery, Labor Records, etc.
X3 = Pricing policy - T&M vs. Flat Rate,
Exchange, Adds, etc.
X4 = Defined Roles & Responsibilities
X5 = Capacity
X6 = Communication Tools

Our inspect process may be inefficient NA

The method by which machines are
chosen for rent needs to improve, the
same units are being rented repeatedly.
This results in some machines
accumulating excessive hours while
other units are idle. The work order
closing process may be inefficient
which causes the availability status of
some machines to be inaccurate in
DBS. We have no reliable means of
communication for members of the
value stream.
N/A
Louisiana Machinery engine inventory
yard at Carencro is unorganized, has
limited space, and much of the yard is
not paved. These conditions make it
difficult to ensure engine quality is not
compromised. The engine quality can
be compromised by many things: by the
elements; by people trying to find the
corect machines; and by loose
packaging
External customers are experiencing
delays in receiving quotations and
information on equipment. Internal
customers are receiving inconsistent
and incomplete Fitting Order
information which results in delays, and
additional costs, in the workshop.
Current performance is: Cycle time = 14
hours and Changeover time = 7 hours.
Those Cycle and Changeover times are
unacceptable and need to be reduced.
To make value flow though this
process, cycle time and changeover
time needs to be reduced to align with
Takt time.
With rapid economic growth in China,
China urban construction development
is booming. So the favorable economic
environment brings tremendous sales
opportunity for Cat BCP/CCE products.
Per statistics of China Construction
Machinery Association, YTD total
BCP/CCE industry increased over
100% in WesTrac territory, but WesTrac
current BCP/CCE PINS are only 1.6%.
WesTrac is missing out on a great sales
oportunity in China.
To overhaul the warehouse and free up space
Y = 100% of serial numbered units and associated
shipped loose boxes are organized under roof
(with protection from the elements) and can be
located and delivered to the staging area within 10
minutes. X1 = Number of engines & models in
queue. X2 = Square footage allotted for inventory.
X3 = Dimensions of units. X4 = Turn radius and
clearance of handling lift trucks and limitations of
current cranes. X5 = Inventory tracking process.
X6 = Alternate storage locations and facilities.
On completion, a cross functional team will have
identified and implemented corrective actions to:
Reduce time taken in providing completed quotes
as requested by customers. Once Purchase
Orders have been received, provide a consistent
and complete flow of information for Fitting Orders.
Y = Time required to produce new machine
quotations. X2 = Information conveyed to
marketing support by account managers. X3 =
Volume of quotations in progress (WIP/inventory).
X4 = Quote production capacity (number of
operators). X5 = Skill and experience of account
managers and quotation staff.
The team will focus on reducing Cycle time and
Changeover time to Takt time limits. This will be
achieved by: Separating Internal and External
changeover activities. Converting Internal
activities to External activities. Streamlining
Internal and External elements. Elimination of
waste in the process.
Y = Increase BCP/CCE PINS from current 1.6% to
5% (160 units) in 2009. X1 = BCP/CCE market
coverage and awareness. X2 = Appreciate
BCP/CCE sales policy and marketing promotion
program. X3 = Customer loyalty. X4 =
Appreciate BCP/CCE product support policy. X5
= Machine availability.
Concerns exist we are failing to meet
both internal and external Customer
Critical Requirements and the Critical
Business Requirements for William
Adams, throughout the "Opportunity to
Cash" process. Reduce the inventory
costs of x% by reducing the turnaround
times from average of xx days to xx
days. Ensuring we deliver exactly what
the customer is expecting. An
opportunity exists to: "Reduce and
maintain selling and admin expense
below 18% of sales." Reduce the time
between sale acceptance and the pre-
work order. Develop established
standard build times. Reduce the
workshop turnaround time from order to
build complete. Establish KPIs for
OTC. Improve level of communication
as demand builds.
The Shop repair process has a lot of
waste that delivery a bad customer
service according to PQCV indicators.
There are many Cost Saving
Opportunity at Capital Machine: Labor
hour cost savings; rebuild turn around
time savings; parts cost savings; and
warranty costs savings. There is a
huge demand for rebuilds if we can
perform them quickly and efficiently.
There are 86 total 320c machines in the
field and 14 have more than 8000 SMU.
If we can perform rebuilds cheaply and
quickly we will save a lot of money for
the customer.
Y1 = Machine build cycle time, Y2 = One Vision,
One Voice, One Team, One Process, X1 =
Sources of waste, X2 = Internal Critical Customer
Requirements, X3 = External Critical Customer
Requirements, X4 = Critical Business
Requirements.
It was decided at CEMCOL to use a CPS Value
Stream Transformation project to apply a
continuous improvement initiative at the San
Pedro Sula Branch main shop. The goal of
eliminating wastes in the D6 repair process and
build better capabilities across the three sub-
systems along with achieving goals within the
areas of People, Quality, Velocity and Cost.
Y1 = Elimination of waste and reduce labor cost,
Y2 = Reduce turn around time, Y3 = Reduce parts
cost, X1 = Level of skill, X2 = Required tooling
and equipment, X3 = Rebuild process and
workflow planning, X4 = Job execution.
coordination (parts supply, paper work, admin), X5
= Pre-rebuild machine diagnostic (can be
eliminated), X6 = Reusable parts identification, X7
= Rebuild option (reman/group
exchange/component exchange/Classic Parts), X8
= Job outsourcing management.
Buscamos mejorar los tiempos de
entrega en los procesos de: 1.
Recepción & Despacho 2.
Presupuestación 3. Procesos en
Talleres: Desarmado y evaluación;
reparación y armado. 4. Facturación.
El primer VST se referirá a R&D por ser
el proceso de contacto con el cliente
donde se inicia y termina el ciclo.
Optimizar los recursos de las Áreas de R&D de los
Talleres para formar un Área de R&D integrada
que brinde soporte al flujo de material e
información desde el ingreso hasta la salida de
FESA según la VOC. Métricas PQVC: Tiempo de
Atención en Recepción XX hrs. / Tiempo de
Lavado xx hrs. / Tiempo de Pintado xx hrs. /
Tiempo de Atención en Despacho xx hrs. / Takt
Time y Tiempo de Ciclo.

Well documented need for project: - 7
years of revenue/profit information - 3
years of engines processed per year
data - 5 years of 3400/3500 engine
rebuild times - Valued added / non-
valued added with best case/ worst
case information - Current State Value
Stream Map with analysis.
Y = Increased 3500 engine rebuilds with higher
profitability - X1 = Reduce lead time for 3500
engine rebuilds - X2 = Increase store capacity for
3500 engine rebuilds - no new capital - X3 =
Reduce finished inventory safety stock.

Pre-delivery processes are a key Improvement in delivery time, Improvement in

element in an efficient product delivery quality of delivered product, Improve Throughput.
system and have a strong impact on
dealer profitability and customer
satisfaction. There is no current
documented standard flow in the
process; there is perceived variability in
Velocity and Quality; there are no
documented PQVC metrics cascaded
to employees.
Dealer Project Information
Contact
Replicate
Benefits of Project Publish? Tools Used in Project First
?
Name
NA Y Y Waterfall chart Wyss
Current State Value Stream Map
Histogram
Process Map
Root Cause Analysis
Standard Jobs

NA Y Y Histogram, Box plot, Probability Plot, Koh

Anderson-Darling Normality Test, 2
Sample T-Test, One-way ANOVA,
Tukey, Confidence Intervals,
Descriptive Statistics, Test and CI for
One Proportion, Ishikawa (Fishbone)
Diagram, To Be Functional Process
Map

NA Y Y Current State Value Stream Map Doug

PQVC Waste
Xbar - R Chart
Anderson Darling Normality Test
Process Capability Chart
Scatter Plot
Root Cause Analysis
Cultural Assessment
Brainstorming
Standard Work
Roles and Responsibilities

NA Y Y Current State Value Stream Map (2) Nancy

Safety, Quality, Velocity, Cost Issues
identified - solutions presented
Spaghetti Map (2)
Process Improvement Dialogue (PID)
30 Day Follow Up
Lessons Learned
NA Y Y NA Pierre

NA Y Y Brainstorming, Current State Process Jay

Map, Spaghetti Diagram, Root Cause
Analysis, Go, See, Act, Pugh Matrix,
Waste Walk, Future State Process
Map, 5S, 5 Safety Improvements, 30
Day Plan, 60 Day Plan, Value
Added/Non-Valued Added Analysis,
Lessons Learned.

NA Y Y Current State Process Map, Hilton

Brainstorming, 5 Whys, Action List,
Quick Hits (Quick Wins), Future State
Critical Success Factors.

NA Y Y Current Process Steps Map, Future Hilton

State Process Map, Action Items.

NA Y Y Current State Process map, Root Julia

Cause Analysis, Future State Process
Map, Roles and Responsibilities -
Future State, Standard Checklists , 30
Day RIW Action List, Expected
benefits, Critical Success Factors.
NA Y Y Current State Process Map, Olliver
Brainstorming, 5 Whys Problem
Solving, Quick Hits (Quick Wins),
Future State Process map, 30 Day
Action List, KPIs, Standard
Jobs/Checklists, PQVC Benefits/Value.

NA Y Y Cultural Assessment, Wastes NA

Identified, Takt Time, Takt Time/Cycle
Time Bar Chart, Risks Identified, Safety
& Ergonomics Review, Current State
Value Stream Map, Spaghetti Chart,
PQVC Baseline and Targets, MGPP.

NA Y Y Current State Value Stream Map, NA

Noodle Diagram (Spaghetti Chart),
Brainstorming, Future State Value
Stream Map, Detailed Action List, Key
Success Factors, PQVC
Benefits/Value.
NA Y Y MGPP, 3 RIWs identified plus Quick Cecilia
Wins, PQVC metrics identified,
Standard Work, Current State Value
Stream Map, Future State Value
Stream Maps, Continuous
Improvement Process, 2 RIW
presentations included, Area Map for
RIW, Pareto Chart.

NA Y Y Value Added/Non-Value Added Hilton

analysis, Go, See, Act (4 days), Future
State Value Stream Map - with key
requirements for success identified, 3
RIWs identified - 1 completed , MGPP
(6 month plan), Standard Work
implemented, Continuous Flow &
Supermarkets implemented, Kanban
system , Implementation Plan w/
responsibilities & dates.

NA Y Y MGPP, Implemented CIProcess, PQVC Thomas

Metric targets, Change Plan, Safety &
Health Assessments / Programs,
Current State Value Stream Maps with
analysis, 4, 6 Sigma projects and 10
RIWs identified, Project priority list for
above 14 projects, 5S, Ergonomic
evaluation, standard work
implemented, Wastes identified.
Contact Information Web Details
Contact
Contact Publication Date Published
Last Job Role Web Menu
Email Title (MM/DD/YYYY)
Name
Fabian (Product fabian.wyss Machine Project 1/23/2012
Support @avesco.c Preparation Examples /
Project h Process - Product
Manager) Avesco - 6S Support

Yeok Soon BB koh.yeok.so Improve Project 1/23/2012

on@tractors Machine Examples /
.simedarby. Invoicing Business
com.sg Process - Support
Tractors
Singapore -
6S

Brooks DC doug_brook Hydraulics Project 1/23/2012

s@carterma WIP & LDI - Examples /
chinery.com Carter - RIW Product
Support

Zwijac MBB Nancy_Zwij Rental Project 1/23/2012

ac@cashm Operations - Examples /
anequipme Cashman - Rental/Used
nt.com RIW
Sauvé Ceinture psauve@he Parts Project 1/23/2012
Noire witt.ca Warehouse Examples /
6Sigma Capacity - Parts
Hewitt - RIW Operations

Thompson BB jthompson Engine Project 1/23/2012

@louisiana Inventory Examples /
machinery.c Receiving & Machine/En
om Staging - gine Sales
Louisiana
Machinery -
RIW

Smith DC Parts Project 1/23/2012

Operations - Examples /
Hilton.smith Warehouse Parts
@westrac.c Contaminatio Operations
om.au n Control -
WesTrac

Smith DC SV75 Project 1/23/2012

Dynamomet Examples /
Hilton.smith er Quick Product
@westrac.c Changeover Support
om.au - WesTrac -
RIW

Tang (Sales julia.tang@ Increase Project 1/23/2012

Administrati westrac.co BCP-CCE- Examples /
on m.cn PINS - Machine/En
Manager) WesTrac gine Sales
China - RIW
Riedel MBB OlliverRiede Machine Project Not
l@wadams. Order to Examples / Published
com.au Build Business
Process - Support
William
Adams - RIW

NA NA NA D6H Repair Project Not

Optimization Examples / Published
- CEMCOL - Service
VST Operations

NA NA NA 320 Series Project Not

Rebuild Examples / Published
Process - Product
Capital Support
Machinery -
VST
Falcon NA Falcon_Cec Mejorar los Project 1/23/2012
ilia@cat.co Procesos de Examples /
m Recepción y Service
Despacho en Operations
Servicios -
Ferreyros -
VST

Smith DC SV75 3500 Project 1/23/2012

Rebuild Examples /
Hilton.smith Process - Product
@westrac.c WesTrac - Support
om.au VST

Sobocinski MBB Sobocinski_ Engine Project 1/23/2012

Thomas_C Customizatio Examples /
@cat.com n Efficiency - Product
Zeppelin - Support
VST