1 - K ACEOverview Element

AchievingCompetitiveExcellence1/29/2020AchievingCompetitiveExcellenceOverviewAchievingCompetitiveExcellence1/29/2020AgendaWhatisACE?WhyAreWeDoingIt?HowDoesACEWork?ACEStructureSummaryAchievingCompetitiveExcellence1/29/2020WhatisACE?AcomprehensivesystemtoimprovequalityAcommonprocessacrossallofUTCAsetofstandardmeasuresAnaturalevolutionofacontinuousperformancecultureAchievingCompetitiveExcellence1/29/2020ACEBackgroundStartedinmanufacturingatPratt&Whitneyin1996Mechanismforimprovingqualitybyachievingspecifiedlevelsofcompetencyin7improvementtoolsFactorysuccessesleadtobroaderimplementationAchievingCompetitiveExcellence1/29/2020WhyACE?“CostofPoorQuality”Elements(TheIcebergModel)LostSalesLostCustomerLoyaltyHidden?ExtraInspectionEscapesScrapWarrantyReworkRepairVisible2-3%ofSalesNon-Visible5-8%ofSalesEngineeringChangesRecurringServiceBulletinsRecurringEngineeringNoticesExtraSet-upsLongCycleTimesNon-ContractualWarrantyExpeditingCostsLostSalesLostCredibilityLostCustomerLoyaltyLateDeliveryChargesExcessInventorySupplierQualityAchievingCompetitiveExcellence1/29/2020WhyACE?InvolveandEmpowerFront-lineLeadershipandtheWorkforcetobe“Owners”oftheirprocessFocusEntireCompanyonStretch,ConsistentandMeasurableGoalsAlignAllResourcesUnderOneIntegratedInitiativeImprovecompetitivenessAchievingCompetitiveExcellence1/29/2020HowDoesACEWork?Mission:AchievealevelofqualityimprovementthatwillsatisfyourcustomersandallowustoworkmoreefficientlyAchievingCompetitiveExcellenceNew5STPMQCPCPassportSystemStandardWorkMarketFeedbackAnalysisProcessManagement&CertificationMistakeProofingSetupReductionRootCauseAnalysisItoUniversityAdditionalACEtoolsQUALITYAchievingCompetitiveExcellence1/29/2020HowDoesACEWorkTheToolsAchievementLevelsAchievementCriteriaOrganizationalStructureMission:AchievealevelofqualityimprovementthatwillsatisfyourcustomersandallowustoworkmoreefficientlyAchievingCompetitiveExcellence1/29/2020TheToolsNew5S/VisualWorkplacePeopletakeprideintheirworkplace,improvingefficiencyandmoraleSpiritSortStraightenShineStandardizeSustainAnyonecanwalkintoaworkplaceandvisuallyunderstandthecurrentsituationAchievingCompetitiveExcellence1/29/2020AchievingCompetitiveExcellence1/29/2020AchievingCompetitiveExcellence1/29/2020TheToolsTPMAnequipmentmanagementstrategydesignedtoachievemaximumefficiencythroughemployeeinvolvementAssignedOwnershipofsharedequipmentDocumentationofDowntimeandReasonsScheduledmaintenanceAchievingCompetitiveExcellence1/29/2020AchievingCompetitiveExcellence1/29/2020TheToolsQCPCSimpletoolusedtocontinuouslyanalyzeaprocessforqualityimprovementopportunitiesandprocessinefficienciesor“turnbacks”AchievingCompetitiveExcellence1/29/2020TheToolsRelentlessRootCauseRapidandpersistentpursuitofthefundamentalbreakdownorfailureoftheprocessthatwhenresolved,preventsrecurrenceoftheproblemMistakeProofingUsingwisdomandingenuitytoprovidemethodsand/ordevicesthatallowyoutodoyourjob100%defectfree100%ofthetimeAchievingCompetitiveExcellence1/29/2020MistakeProofingAchievingCompetitiveExcellence1/29/2020TheToolsMarketFeedbackAnalysisUsingunemotionalcustomerdatatofocusontheissuescausingourcustomersthemostpainandfrustrationPassportAsetofreviewsintegratedwiththeprogramdeploymentprocessdesignedtoensureallproblemsareidentifiedinthedeploymentcyclebeforemovingtothenextstageAchievingCompetitiveExcellence1/29/2020TheToolsProcessManagementandCertificationProcessCertificationMethodologythatwillreducevariationandoptimizetheefficiencyofourprocesses.ProcesscertificationrequiresaprocesstobecapableandincontrolProcessManagementDisciplinedapproachtoachievingbusinessprocesseffectiveness,efficiencyandagilityAchievingCompetitiveExcellence1/29/2020TheToolsSet-UpReductionReducingthetimeofchangeoveramachineorprocessfromthelastgoodpartthroughtheacceptanceofthenextgoodpartAllowsforthereductionoflotsizewhichimprovesleadtimesandinventoryKeyistomoveinternalsetuptaskstoexternalAchievingCompetitiveExcellence1/29/2020Set-UpReductionAchievingCompetitiveExcellence1/29/2020TheToolsStandardWorkThemotionoftheoperatorandthesequenceofthemovementofmaterialthroughthecellorworkareaTaktTimeWorkSequenceStandardWork-In-ProcessThemethodbywhichworkissimplifiedandstructuredtoensuremaximumconsistencyandrepeatabilityovertimeSimplifiedworkinstructionsDefinedstandardsDocumentedlessonslearnedAchievingCompetitiveExcellence1/29/2020AchievementLevelsWorkAreasareReadytoCertifyOnce…AllmetricsforeachtoolhavebeenreachedFourAchievementLevels:QualifyingBronzeSilverGoldSiteisCertifiedOnce…AllworkareasarecertifiedAchievingCompetitiveExcellence1/29/2020AchievementLevelsQualifyingBronzeSilverGoldAwarenessandBaselineActivityAssessmentandApplicationStepChangeExcellence!AchievingCompetitiveExcellence1/29/2020AchievingCompetitiveExcellence1/29/2020AchievementCriteriaQualifyingCriteriaExample:5S•ACEAwarenesstraining•OwnersforSharedAreas/EquipmentIdentified•ACEActivityBoard•ChecklistsDevelopedandUtilizedinScheduledAuditsManufacturing5S•ACEAwarenesstraining•OwnersforSharedAreas/E