HOW TO USE THIS BOOK

(FOLLOW THE FLOWCHART SHOWN ON THE NEXT PAGE)

Study Chapters 1 - 7, holding periodic name-in-the-hat group meetings.

When reading the text, reflect on each sentence. Reflect on the concepts.

Be sure that all senior management has taken the 24-hour Management
for Results course offered by the Instituto de Desenvolvimento
Gerencial.

Set up a Management Improvement Plan that corresponds to the

PUTTING THE HOUSE IN ORDER phase. Adopt an 8 - month time frame.

Begin work. During this time reconvene your name-in-the-hat group and
study again chapters 1 - 7. When the ideas are applied in practice, the
level of understanding improves considerably. See for yourself.

After 8 months resume the study of the book. Together with your namein-the-hat group study up to Chapter 13.

Set up a new Management Improvement Plan that corresponds to the

ADJUSTING THE MACHINE phase. Adopt a 16 - month time frame.

Begin work. Reconvene your name-in-the-hat group as in item 4.

At the end of the 16 months get back to your name-in-the-hat group and
go through to the end of the book. I can guarantee you that by that time
your management may already be classified as "World Class."

UNDERSTAND
YOUR WORK

MANAGE TO
IMPROVE RESULTS

MANAGE TO
SUSTAIN RESULTS

MONITOR
RESULTS

ELIMINATE
ABNORMALITIES

STANDARDIZE

PUTTING THE
HOUSE IN ORDER

2ND PHASE

PUTTING THE HOUSE

IN ORDER

1ST PHASE

UNDERSTANDING
YOUR WORK

IMPROVE

IMPROVE
MAINTENANCE

PRACTICE PROBLEM
SOLVING

12

10

IMPROVE
MONITORING

13

11

ADJUSTING THE MACHINE

3RD PHASE

HUMAN
RESOURCES

ASSURE
QUALITY

(EACH RECTANGLE CORRESPONDS TO A CHAPTER OF THIS BOOK)

FLOWCHART FOR THE ROAD TOWARDS EXCELLENCE

4TH PHASE

14

FUTURE

ON THE ROAD TO THE

FUTURE

OPERATIONAL

OPERATION

SUPERVISION

MANAGEMENT

Figure 1.1: Functions of people within an organization and its relation to the method.

FUNCTIONS

MANAGERIAL

DIRECTION

SITUATION

OPERATION

SUPERVISION

MANAGEMENT

DIRECTION

FUNCTIONS

MANAGERIAL

OPERATIONAL

* Follows the Standard Operational Procedures.

* Promotes the training of the operation

function

* Checks wether the operation function is

following standard operational procedures.

* Promotes the training of the supervision

function.

* Attains GOALS (PDCA).

* Establishes GOALS that guarantee the survival

of the company through the use of a strategic
plan. Deploy these goals.

NORMAL

* Reports abnormalities.

* Every six months draws up a status report for

senior management.
* Eliminates chronic abnormalities by attacking their
root causes (PDCA).
* Periodically reviews abnormalities to detect chronic
abnormalities (Pareto Analysis).
* Checks abnormalities daily at the site of their
occurrence, working in a complementary manner
with supervision.
* Records abnormalities and reports them to the
managerial function.
* Conducts abnormality analysis, attacking the
inmediate causes (for example, was the standard
observed?).

* Understands status report management.

* Establishes GOALS to correct the current situation.

OCCURRENCE OF ABNOMALITIES

Table 1.1: Type of Work Carried Out Through Each Function(2), (3).

TYPE

TOP MANAGEMENT

TOP DOWN
MANAGEMENT

Figure 2.1: Division of Management.

- IMPORTANT RELATIONSHIP

ROUTINE
MANAGEMENT

MANAGEMENT
BY POLICY

MODE
CROSSFUNCTIONAL
MANAGEMENT

HOW ARE MY RESULTS?

HOW DO THEY COMPARE WITH THE
GOALS?
HOW DO THEY COMPARE WITH THE
BENCHMARKS?

CONTROL ITEMS:

ACTING ON THE PROCESS (MEANS)

TO SUSTAIN AND IMPROVE
RESULTS.

CORRETIVE ACTION:

MORALE: MOTIVATION, UNITY,

PARTICIPATION, FRIENDSHIP, LEARNING, GROWTH,
ENVIRONMENTAL PROTECTION.

5S: PARSIMONY, ORGANIZATION, CLEANLINESS,

DISCIPLINE, PURITY OF INTENTIONS, AND JUSTICE.

EXECUTION: DISCIPLINED WORK

ACCORDING TO STANDARD OPERATIONAL
PROCEDURES.

Figure 2.2: Daily Work Routine Management Mentality.

COMPLIANCE WITH STANDARDS

- SYSTEM STANDARD
- PROCESS TECHNICAL STANDARD
- STANDARD OPERATIONAL PROCEDURE

METHOD:

THE COMPETITION AND IN A MORE

ECONOMICAL MANNER.

GOAL: TO SATISFY PEOPLE BETTER THAN

5S

DEFINITION OF
FLOWCHARTS

ABNORMALITY
REPORT

PDCA
TRAINING
A PRIORITY
PROBLEM

IDENTIFICATION
OF CHRONIC
ABNORMALITIES

STANDARD OPERATIONAL PROCEDURE

(On-the-job training)

PROCESS TECHNICAL STANDARD

OR SYSTEM STANDARD

PROCESS EVALUATION
(Dispersion evaluation)

PROCESS
IMPROVEMENT
(Dispersion reduction)

CORRECTIVE
ACTION

TWO EASY
PROBLEMS

RESEARCH OF
BENCHMARK
VALUES

DEFINITION OF
PRIORITY
CONTROL ITEMS

ACTION PLAN

FULL UTILIZATION
OF PDCA

C D

A S

FULL
UTILIZATION
OF SDCA

QUALITY
ASSURANCE
(Reliability)

PRODUCTIVITY
GAINS

C D

A P

IDENTIFICATION OF
PRIORITY PROBLEMS

GRAPHS

CONTROL ITEMS
TABLE

Figure 2.3: Basic Outline for the Improvement of Daily Work Routine Management.

STANDARDIZATION

ELIMINATION
OF
ABNORMALITIES

ORGANIZATION
OF YOUR
MANAGEMENT

DESCRIPTION
OF BUSINESS

GOAL
IDENTIFICATION

5S

DAILY WORK
ROUTINE
MANAGEMENT

Figure 2.4: Exemplary Daily Work Routine Management.

Exemplary
Daily Work Routine Management

HUMANISM

METHOD

Receive an IMPROVEMENT GOAL from your

director or establish your own goal (quality,
cost, customer service, morale, and safety).
Establish a control item.
Gather information (Facts and Data)

Carry out an analysis

(What are the causes that keep us from reaching the goal?)

MANAGERIAL ACTION PLAN

(Countermeasures against the causes)

You and your team carry out the ACTION PLAN.

Check whether all actions were executed.

500
CONTROL
ITEM

475

BETTER

455

* GOAL (425)

400

Time

(380) BENCHMARK
Company Y, Inc.

If your PLAN produced no results, go further in gathering

data and in the analysis.

If your PLAN was successful, STANDARDIZE.

Train the workers and conclude.

Figure 3.1: Method for Attaining Goals.

Table 3.1: How to Set Up Your First Action Plan.

Receive the IMPROVEMENT GOAL from your director, or establish one

yourself. Collect all the information you can on the subject.
Call on everyone (engineers, technicians, supervisors, workers, other

2 managers, technicians from supplying companies, consultants, etc) that you

feel can contribute; those who are on top of the subject. This is a process of
knowledge collection.

3 Hold a meeting, visiting, if possible, the location where the subject occurs.
Have available: plenty of flip-chart paper, masking tape, magic markers of
several colors, post-it notes, etc.

4 At the meeting, state first your long-range goal (one in which you surpass the
best in the world). Then, state the goal to be reached within one year at the
most. Clearly explain how much the company will earn per year after it reaches
the goal. Put all this on flip-chart paper affixed to the wall. Print in very large,
colored letters to help people remember. Discuss these numbers with the
people in the meeting. How many families could be supported with the saving
from this waste reduction?

5 Define the groups problem. Write: OUR PROBLEM IS TOO MANY INVOICING
ERRORS (for example).

6 Now ask the group: WHY DO WE HAVE SO MANY INVOICING ERRORS? (for
example). At this point you have two alternatives: either you can distribute
post-it note paper and have each one write down a cause of the problem or
simply say what he or she thinks is the cause of the problem. The leader of
the meeting writes down each cause on the flip-chart sheets affixed to the
wall of the room. Do not forget to ask why? a number of times.

7 Having finished the cause harvesting activity, attempt to simplify the

causes by combining similar ones and eliminating those considered
unimportant by the group. If necessary, the group may vote. Analyze the
consistency of the causes during the cleanup process.
(a) What is the impact of the elimination of each cause on the desired result (goal)?
(b) Is it within my authority to act on this cause?

8 Now, for EACH CAUSE that remains after the cleanup process, discus with the
group one or more COUNTERMEASURES. Write on the flip-chart sheets only
those countermeasures that are agreed upon by all. Place these
countermeasures in the 5W 1H format. Presto! You have an ACTION PLAN, as
shown in Table 3.2.

06/30

Paul

3. Train personnel

In this column
place a name, and
not a group or an
acronym. It must be
the name of the
person in charge

08/31

John

2. Change the guides

In this column
place the
countermeasures
that came out of
brainstorming
(See Table 3.1)

08/31

(WHEN)

TIME

Mike

PERSON
RESPONSIBLE
(WHO)

1. Level the base of

the equipment

(WHAT)

COUNTERMEASURES

To prevent
stoppages

To train them in
new procedures

Rolling
mill
Training
center and
work area

In these five columns

you place the
complementary data
as shown above

To prevent sleeve
breakage

Rolling
mill

* Do not leave out this

WHY column. People
want to know why they
must do something

Use recently updated Standard

Operational Procedures RC-0-1-98
and RC-0-1-99.

Take advantage of the shutdown of

the rolling mill and change any guides
that are worn.

Disassemble the main roller, remove it

with the overhead derrick and raise
base B2 by 2cm with drilled steel plates
in order to make room for the regulating
screw.

PROCEDURE
(HOW)

JUSTIFICATION*
(WHY)

(WHERE)

LOCATION

Table 3.2: Example of an ACTION PLAN (5W 1H).

OPERATIONS

Product
Merchandise
or Service

Figure 4.1: Distinction between PROCESS and OPERATION.

PROCESS

STEEL
REFINED

FURNACE
PREPARED

TRANSPORT

SCRAP
PREPARED

PROCESS
FLOWCHART

16
8
4
8

Assembly
Casting
Operation
Refining
Operation

Booth Operation
Platform
Operation

Adjustment

Crane Operation

Priority level
of the task

Prepare the
Tower

OPERATIONS

Number of
people assigned
to the task

Standardization Putting the House

order
in Order phase

Priority for the

Table 4.1: Priorization for Standardization (this table is a simulation and does not depict an actual case.
It merely serves as an instructive example).

Customer

Product
Process
Engineering Engineering

PRODUCTION
Manager

Supervisor

Operator

Needs
Product
specification
and design
Process
specification

Standard
operational
procedure
Trains the
supervisor
Trains the
operator and
checks
compliance
with standard
Implements
quality
assurance
complying
with standard
Idea for new
standard
operational
procedure
Approves

Approves

Figure 4.2: Process of Establishing and Modifying a Standard Operational Procedure.

STANDARD RESTAURANT
INC.

STANDARD
OPERATIONAL
PROCEDURE

Standard: RP-C-03
Established: 03.24.94
Revised: 04.08.1994

NAME OF PROCEDURE: Coffee Preparation

WORKER RESPONSIBLE: Kitchen Assistant

Revision Number: First

MATERIAL REQUIRED
KETTLE

FILTER HOLDER

GROUND COFFEE

CONNECTOR

COFFEE MEASURER

STANDARD CUP

THERMOS BOTTLE

HEAT-RESISTANT GLOVE

PAPER FILTER

CRITICAL ACTIVITIES
01 - CHECK HOW MANY PEOPLE WILL DRINK COFFEE.
02 - PLACE WATER TO BOIL IN KETTLE (1 STANDARD CUP/PERSON).
03 - PLACE GROUND COFFEE IN PAPER FILTER (1 COFFEE MEASURE/PERSON).
04 - WASH THE THERMOS BOTTLE.
05 - PLACE FILTER ON TOP OF THERMOS BOTTLE, USING CONNECTOR.
06 - WHEN THE WATER BEGINS TO BOIL, POUR A LITTLE OVER THE GROUND COFFEE TO MOISTEN IT
THOROUGHLY.
07 - AFTER 30 SECONDS, POUR THE REST OF THE WATER IN THE FILTER.
08 - WHEN ALL THE WATER HAS PERCOLATED, REMOVE FILTER AND CLOSE THE THERMOS BOTTLE.

HANDLING OF MATERIAL
01 - AFTER EACH BREWING, WASH ALL EQUIPMENT, DRY AND STORE.
02 - GROUND COFFEE SHOULD ALWAYS BE KEPT IN A CLOSED CONTAINER.

EXPECTED RESULTS
01 - COFFEE AVAILABLE IS ALWAYS FRESH (MAXIMUM OF ONE HOUR AFTER BREWING).
02 - COFFEE AT CORRECT STRENGTH (NEITHER TOO WEAK NOR TOO STRONG).

CORRECTIVE ACTIONS
IN CASE THERE ARE COMPLAINTS THAT THE COFFEE IS TOO WEAK OR TOO STRONG, CHECK TO
SEE IF THE CORRECT AMOUNT OF WATER AND THE CORRECT AMOUNT OF GROUND COFFEE WAS
USED, OR IF THERE WAS A CHANGE IN THE QUALITY OF THE GROUND COFFEE. IF IN DOUBT,
CONSULT THE SUPERVISOR.

APPROVED:
WORKER

WORKER

WORKER

SUPERVISOR

MANAGER

Figure 4.3: Example of a Standard Operational Procedure - SOP(6).

NAME OF
OPERATION

AIR PRESSURE OF
PNEUMATIC
SCREWDRIVER

NOTE

TIGHTENING THE
SMALL SCREWS

CRITICAL ACTIVITY 3

TIGHTENING THE
LARGE SCREWS

CRITICAL ACTIVITY 2

PLACING OF REAR
COVER IN GROOVES

CRITICAL ACTIVITY 1

IMPORTANT
POINTS

AUTHORIZED BY:

3 kg/cm - 4kg/cm

FINAL ASSEMBLY

NAME OF PROCESS:

Figure 4.4: Example of a Standard Operational Procedure (Illustrated).

ASSEMBLY OF REAR COVER

STANDARD OPERATIONAL PROCEDURE

CHECKED BY:

FRONT VIEW

PREPARED BY:

Joo

Praxedes

Teles

Fiuza

Antenor

Pereira

Manoel

Vargas

Dornelles

Souza

Augusto

Workers

Section:

Months

Company X, Inc.

Figure 5.1: Model for an Operational Task Diagnosis Plan.

MONTHS

Supervisor:

OPERATIONAL TASK DIAGNOSIS PLAN

Read

Worker

Supervisor

NO

Read

Section Chief

OBSERVATION: Not following operational procedure

is an abnormality (work nonconformity) and
should be treated by means of an abnormalities
analysis (why wasnt the procedure followed?)

5. Recommendations for changing the standard

(see Figure 5.4). Etc.

4. Accident risks of the task

3. Operator difficulties in observing standards

2. Training given during evaluation

1. Additional training needs

Write down observations here regarding:

OBSERVATIONS

Figure 5.2: Supervisor Evaluation Report Model.

Read

8. When all the water has gone through the filter,

remove the filter and close the thermos bottle

5. Place filter on top of thermos bottle using

connector
6. When the water begins to boil, pour a little
over the ground coffee to moisten it
thoroughly
7. After 30 seconds, pour the rest of the water
into filter

2. Place water to boil in kettle

(1 standard cup per person)
3. Place ground coffee in filter
(one coffee measure per person)
4. Wash thermos bottle

YES

Date: July 21, 2011

Operational Procedure: RP-C-03

OPERATIONAL TASK DIAGNOSIS PLAN

Supervisor: Manuel Antnio Souza
Task: Preparation of coffee

1. Check how many people will drink coffee

CRITICAL STEPS

Section: Food Service

Worker: Augusto

Company X, Inc.

REPORTS
OCCURRENCE OF
ABNORMALITY

WORKER

WHY?
TRAINING?
FOOLPROOF?

NO

PROCESS ENGINEERING
STAFF

PDCA

SOLVES THE PROBLEM BY ACTING ON THE ROOT CAUSE

ESTABLISHES PRIORITIES, CHECKING, THROUGH PARETO ANALYSIS, WHICH CHRONIC

ABNORMALITIES ARE THE MOST FREQUENT

REVIEWS AND COMPLETES

THE ABNORMALITY REPORTS
ON A DAILY BASIS

MANAGER

Figure 5.3: Flowchart of a Process for Addressing Abnormalities.

MAKES ABNORMALITY
REPORT

ACTS UPON
IMMEDIATE CAUSE

CONDUCT ABNORMALITY
ANALYSIS AT SITE

YES

CHECKS COMPLIANCE
WITH STANDARDS

AUTHORIZES REMOVAL
OF SYMPTOM

SUPERVISOR

Occurrence of the abnormality

Remove symptom

Investigate the cause

1

Is there
a standard
procedure?

Prepare a standard operational

procedure and make sure that all
operators are trained in it.

No

Yes
Is the
standard
procedure
appropriate
?

No

The operators
have difficulty in
understanding it

It is not in a
usable form

Yes

2
Rewrite the
standard to conform
to the current work
method

No

The operators
do not understand
the standard

Was
the standard
operational
procedure being
followed
?

The operators are

not trained so as to
be able to follow
the standard

5
Train the operators
in the standard

Offer technical
training to the
operators or reassign
them in other work

It is not practical
or does not
produce good
results
4

3
Rewrite the standard
using diagrams and
figures for easy
understanding

Take another look

at the standard
from a technical
perspective

Yes

The operators
do not feel the
need to
follow the standard

7
Instruct and orient
the operators to
follow the standard

Work conditions
are inadequate

Easy to make error

using procedure, or
complicated
equipment

9
Improve work
conditions

Improve work
methods,
introducing foolproof mechanisms

Figure 5.4: Countermeasures for Preventing the Recurrence of Abnormalities,

according to Hosotani(7).

Table 5.1: Supervisor Training in standard operational procedures.

Show the supervisor how to perform the task

according to the standard operational procedure.

Explain to him or her why the standard

operational procedure should be followed.

Let him or her do it as instructed.

Repeat it until he or she is able to do it alone.

Now evaluate whether the supervisor is ready to

teach the operator.

NO
YES

Certify the supervisor in the task.

Observation: Note that this sequence is the basis for operational

training on any hierarchical level. For example: a
sales manager should be trained in how to make a
sales forecast precisely as shown here.

92

Production
Losses
in 1993.
(tons/day)

420

93

240

M A M

100

300

O N

Losses
from
Stops

Losses
from
Defects

Decline
in
Rhythm

120

200

80

40

20

Losses from
Unforeseen
Breakage

200

80

Losses from
Tool
Replacement

100

20

Losses from
Intermittent
Stops

65

10
4

20

ce

Losses from
Breakage in
the Roller

120

sc

G
u
id
re e
w

Losses from
Scrap

100

ive

Losses from
Production
Start

50

30

20

50

20

Losses in
Roller
Lines

rs
19

Figure 5.5: Pareto Analysis in Preparation for the Current Situation Report (simulation).

Sto
ps
De
fec
ts
D
Sp eclin
ee e
d in

U
Br nfor
ea es
ka ee
g n
To e
Re ol
pla
c
em
en
t
n

Ro
lle
r
Ro
l
l
e
rL
ine
Cy
R lin
e
pla der
ce
G me
Re uide nt
p
lac
em
G

Sc
rap
Pr
Sta odu
rt ctio
In
L ter
o
sse mitt
en
s
t
D
Sp eclin
ee e
d in

na

Fu
r

en
t

uid
eb
r
ea
ka
ge
Po
w
e
r lo
ss
Lu
b
r
ica
tio
n

GOAL
(380)

rs

Dr

Cr
ac
ks

Production
Losses in 500
tons/day

he
Ot

ng

BETTER

Sc
ali
Ha
rd
n

ar

ing
kle
s
en
Di

es
s

Re
s

r
p
W
ar
sio
n

Ot
h

Be
ce

ne
Tu
r

W
rin
ist
an

he
M
ing

60

11

15

gs

Ot
ot
or
s

rs
he
Ot
er
s

rin
Be
a

1000

le
Ax

n=5

50

UCL = 45,69

40

LC = 29.86

30
20

LCL = 14,03

60

UCL = 58,04

40
20

xx x x

x
x

x
x

x x
x

x x x x

x
x

LC = 27.44
x

10

15

20

25

Control Card X - R

Figure 6.1: Control Card (UCL = Upper Control Limit; LCL = Lower Control Limit).

24

18

Hour of the day

12

24

LSL (15)

USL (25)
(20)

Value sought
(Standard goal)

Figure 6.2: Sequential Graph (USL = Upper Specification Limit; LSL = Lower Specification Limit).

Time
necessary to
make up a 15
hotel room,
in minutes 10

20

25

LSL

140

USL

160

180

Figure 6.3: Histogram (USL = Upper Specification Limit; LSL = Lower Specification Limit).

Energy Consumption

ICN IC-R-93-01-14
Dimension: Cost

400

500

00

475

01

455

02

Figure 6.4: Sequential Graph of a Cost Control Item.

*
(380)

BENCHMARK
COMPANY Y, INC.

GOAL (425)

BETTER

Front Office: ________________ Management: ____________ Control: Monthly

XX Company, Inc.

(kWh/t)

PROCESS
RAW
MATERIALS

EQUIPMENT

RESULTS
450

INFORMATION

n=2

LSC = 449,79
LC = 406,31

X 400
LIC = 362,84
350
100
LSC = 75,55

ENVIRONMENTAL
CONDITIONS

50

PEOPLE

PROCEDURES

LC = 23,13

R
0

10 11 12

Operators conforming to SOPs

MAINTAIN
DIAGNOSIS/
TREATMENT
(SUPERVISOR)

ABNORMALITY REPORT
(OPERATOR)
- 5 SENSES REMOVAL OF SYMPTOM
(OPERATOR/SUPERVISOR)

COUNTERMEASURES
AGAINST
IMMEDIATE CAUSES

day

YES

OK
?
NO

SPECIAL

CAUSE
?

COMMON
(CHRONIC)

ABNORMALITY ANALYSIS
(SUPERVISOR)

ABNORMALITY REPORT
(SUPERVISOR)

ADDITIONAL
COUNTER MEASURES
(MANAGER)

DAILY REVIEW
(MANAGER)

The person responsible for the ACTION is indicated in parentheses.

Figure 7.1: Basic Process Control for sustaining results.

(This figure is shown complete in Figure 10.5)

SUPPLIERS

PROCEDURES

EQUIPMENT

PEOPLE

INFORMATION

CHECK
ITEMS

CONTROL
ITEMS

(ENDS)

RESULTS

RESPONSIBILITY

CUSTOMERS
EMPLOYEES
STOCKHOLDERS
NEIGHBORS

OBJECTIVE

PEOPLES
SATISFACTION

TOTAL QUALITY

GOALS

Figure 8.1: Basic Features of the Managerial Process.

YOUR MANAGERIAL AREA

(MEANS)

ENVIRONMENTHAL
CONDITIONS

RAW
MATERIALS

AUTHORITY

Table 8.1: How to Improve Your Daily Work Routine Management.

Make a description of your business (See Table 8.2).

Define your priority products (the one which takes most

time, the one which presents most problems, etc).

Make a flowchart of each process, always beginning with

the highest priority (or most critical) product (See Annex
C and item 4.1).

Promote the standardization of priority tasks (See items 4.2

and 4.3).

Define the control items (See item 8.6).

- for each product of your business (quality, cost, delivery, and
safety),
- for the people who work in your business (morale and safety).

Define the goals for each control item, consulting the

customers for each product and the needs of the company
(See item 8.9).

Establish your benchmark values as you go along (See

item 8.9).

Draw graphs for your control items (See Figures 6.1, 6.2,
6.3, and 6.4). Standardize your graphs.

Standardize each process (See Figures 10.1 and 10.2).

10

Manage. Attain the goals (See Annex A).

- for standard goals use SDCA (See Figure 10.5).
- for improvement goals use PDCA (See Annex E).

Table 8.2: How to Describe Your Business

Hold a meeting with your fellow workers.

Provide flip-chart paper and magic markers.

On the flip-chart, draw a square in the middle and write

in it the name of your sector (for example: finance,
shipping, refining, etc)
(See Figure 8.2).

Below, write how many people work in your business

(list only those who are under your authority).
List also important equipment used in your business.

On the right-hand side of the square, design a tree-branch

diagram and begin listing the products of your business
(See item 8.5).

List the customers for each product.

Now, on the left-hand side of the square make another

tree-branch diagram and list the products you receive
from suppliers.

Define the suppliers of each product.

OK. You have just defined your business.

OBSERVATION: Hang the flip-chart paper with the description of

your business on the wall and let your fellow workers think about it.
They may want to contribute additional information. When it seems
complete, write it up neatly and place the scheme on a board so that
it is very clear what your business is.

PRODUCTION/
DISTRIBUTION GRID

PRODUCT SUPPLY
ORDER

WAGON PROJECT
FEEDBACK

- 5 COMPUTERS
- 2 TERMINALS
- 4 PRINTERS
- 8 TELEPHONES
- 6 CALCULATORS
- FAX AND XEROX MACHINES

EQUIPMENTS

- HUGO - MANAGER
- MARX - PROJECT DRAFT
- FORTUNATO - DISTRIBUTION/RECEPTION DESK
- JOS DOMINGOS PRICES
- BERNARDO - PURCHASE
- ELIANE - DISTRIB./RECEP. DESK
- WALTER - DISTRIB./RECEP. DESK
- ALESSANDRO - DISTRIB./RECEP. DESK
- SAULO - DISTRIB./RECEP. DESK
- VAGNER - DISTRIB./RECEP. DESK
- 2 TRAINEES - TO BE DEFINED

PEOPLE

- ENSURE THAT PRODUCTION AND

DISTRIBUTION ARE ACCORDING
TO COMPANY POLICIES AND
COMPATIBLE WITH THE
REQUIREMENTS OF THE UNIT

MISSION

PCPD
PLANNING AND
CONTROL OF PRODUCTION
AND DISTRIBUTION

BUSINESS

BUSINESS

BOTTLE LOAN
AUTHORIZED

RECEPTION FOR REINFORCEMENT

PRODUCTS AUTHORIZED

FORECAST FIGURES FOR

SALES CALCULATED

PRODUCTS DISTRIBUTED

CHECK FOR ENTERED BOTTLES

DELIVERED

STOCK ROTATION DONE

BOTTLING LINE SUPPLIED

PRICE TABLES ASSESSED

PRICE TABLE ISSUED

PRODUCTION SUPPLIED WITH KELLCOLOID/

INFUSION EARTH

PRODUCTION SUPPLIEDX WITH INPUTS/

CORKS/PET/ CARDBOARD TRAY/LABLE

PRODUCTION SUPPLIED WITH

BOTTLES/BOTTLERS

BOTTLING/MANUFACTURE
PROJECT

PRODUCT

- COMMERCIAL D.

- COMMERCIAL D.

- FINANCE D.

- COMMERCIAL D.

- FINANCE D.

- COMMERCIAL D.

- INDUSTRIAL DIR.

- INDUSTRIAL D.

- GENERAL M.

- COMMERCIAL D.

- GENERAL M.

- INDUSTRIAL D.

- GENERAL M.

- INDUSTRIAL D.

- GENERAL M.

- INDUSTRIAL D.

- GENERAL M.

- INDUSTRIAL D.

CLIENTS

Figure 8.2: Description of the Production and Distribution Planning and Control Business of Company S.

LOGISTICS M.

SHIPPING COMPANY
ES. COMMERCIAL D.
CVRD
RESALES
SHIPPING COMPANIES

PRICE TABLE

REQUEST FOR THE LOAN OF

BOTTLES

COMMERCIAL D.

OTHER UNITS

REQUEST FOR PRODUCT

REINFORCEMENT

REMOVAL SCHEDULE

LEGISLATION

PRICE POLICY

COMMERCIAL D.

COMMERCIAL Ds.
/ UNITS

COMMERCIAL D.
MARKETING BOARD
FINANCE BOARD
FINANCE BOARD
MARKETING BOARD

TOP MANAGEMENT

INDUSTRIAL D.

ORDERS

INPUT AND PACKAGE

CONSUMPTION
STANDARDS

INDUSTRIAL D.

INPUTS

PRODUCTION CAPACITY/
(BOT. + MANUF.)

SUPPLIERS

Personnel

Environmental
Procedures
conditions

PEOPLE

PRODUCTS

OF EMPLOYEES

OF NEIGHBORS

OF CUSTOMERS

RIGHT TIME

RIGHT QUANTITY

CARACTERISTICS THAT MEASURE

EVERYONES SATISFACTION

MORALE

SAFETY

DELIVERY

RIGHT PLACE

COST (COST, PRICE, PROFIT, MARGIN)

INSTRINSIC QUALITY

Figure 8.3: Origin and Coverage of Your Control Items.

Information

Equipment

Raw
materials

Imagine yourself president

of this small company

Table 8.3: Method for Determining Control Items in Daily Work Routine
Management at all Hierarchical Levels.
(See Figure 8.4)

Get together your staff and immediate co-workers.

Ask: What are our products? (What do we do here?). Anything

that is done to meet someones needs (or as a result of this) is a
product (goods and services).

Who are the (internal and external) customers for each product?
What are our customers needs? Ask each one in person.

Quality Control Items: How can we measure quality (meeting the

needs of our customers) of each of our products? Are our customers
satisfied? What is the number of complaints? What is the rate of
rejects?

Cost Control Items: What is the cost sheet for each product? (Make
one yourself, even if in approximate figures. Do not wait for the Costs
Department, nor should you be afraid of committing errors). What is
the unit cost of the product?

Delivery Control Items: What percentage of each product delivery

fails to meet deadlines? What is the percentage of deliveries to the
wrong address? What is the percentage of deliveries of the wrong
quantity? Etc.

Morale Control Items: What is the turnover in our team? What is the
absentee rate? What is the number of shop steward complaints?
What is the number of health unit visits? What is the number of
suggestions? Etc.

Safety Control Items: What is the number of accidents in our team?

How serious are they? What is the number of accidents among our
customers because of the use of our product? Etc.

Company
Manufacture

Equipment and
Services Made
Available

Affects final consumer

Manufacture

Manufacture/
Sales

Production
Planned

Production
Supplied
(Dir./ Indir. Mat.)

External
Clients

Products
delivered to
clients

Obeying Restrictions
from Manufacture

Quantity/Deadline
Quality (Released)
Cost

Quantity/Deadline
Quality (Released)
Supply Flexibility
Low Acquisition Cost
Stocks

Quantity
Models
Deadline

Deadline
Product as ordered
Quantity (volume) of Correct Billing
Product Integrity
Cost of Deliveries

Needs

Variation in equipment and service

costs

Number of missing items

Value of Total Stock

Number of raw materials (items)

missing in production
Number of MNC - material nonconformity
Evolution in raw material costs
Evolution in indirect material costs

Planned x actual production at closure

. Quantity
. Model

Number of orders not delivered to

clients on schedule
Orders x billing portfolio
Total Lead Time
Amount of divergence between orders
& deliveries in relation to:
. Product as ordered
. Quantity (volume)
. Product Integrity
. Billing
Costs of Order Deliveries

Control Item

Figure 8.4: Example of a sequence for defining the Control Items of a Logistics Director.

Logistics
Mission

Clients

Products

SALES

PRODUCT
(OR
FUNCTION)

ETC.

MARKET
SHARE OF
PRODUCT X

CONTROL
ITEM
PORCENTAGE
OF SALES
OVER TOTAL
SALES OF A
SIMILAR
PRODUCT

UNIT OF
MEASUREMENT

PRIORITY
(A, B, C)
WHEN TO ACT

CONTROL

ONCE A MONTH ALWAYS WHEN

LESS THAN 50%

FREQUENCY

Table 8.4: Example of a Control Items Table.

CALL A
MEETING OF
MANAGERS,
SALES PEOPLE
OF THE AREA
AND OF
TECHNICAL
ASSISTANCE.
DETERMINE
CAUSES AND
TAKE ACTION.

HOW TO ACT

METHOD

NUMBER OF
COMPLAINTS
PER MONTH

10

20

95

M J J A S O N D

Figure 8.5: Practical Rule for setting up Goals.

94

*
THEORETICALLY ATTAINABLE VALUE
IN THIS CASE IS ZERO

Goal Line

J F M A M J J A S O N D J F M A

AVERAGE
VALUE (16)

BETTER

GOAL
(8)

DEFECT RATE (%)

(Percentage in
weight of
defective
material over
total produced)

YOUR PROCESS

92

93

94

J F M J J A S O N D

Figure 8.6: Definition of a Problem.

1,0

2,0

3,0

4,0

RESULTS

GOAL

PROBLEM
FOR 1994

TOTAL
PROBLEM

Table 9.1: Simplified Method for Identifying Bad Results in Your

Management Area.
1 Call in your staff and immediate co-workers and make a short presentation of
the theme: What comprises a problem.

2 Give a piece of paper to each of the participants and ask them to list the main
problems in your managerial area.

3 Collect the opinions and screen the problems, examining each problem with
everyone present. Select those that are undesirable results (the excluded
suggestions should be kept for future action).

4 If the group so wishes, distribute more paper and have the participants list
additional problems.

5 Classify the problems (undesirable results) into controllable (those over

which it is possible to exercise control within the managerial area itself)
and not controllable.

6 Among the controllable problems, select those that can be most easily
solved in the short term (around 3 months) and use PDCA to solve them. This
is equivalent to on-the-job training in the PDCA method.

7 The problems that depend for their solution on other managerial units
should be treated within a crossfunctional relationship.

8 When problems brought up are vital for the company and their solution
depends on the organization, the board should set up a committee and a
crossfunctional work group to solve them.

7
CONCLUSION

STANDARDIZATION

WAS RECURRENCE PREVENTION

EFFECTIVE?

CHECKING

EXECUTION

ACTION PLAN

ANALYSIS OF THE PROCESS

ANALYSIS OF THE PHENOMENON

IDENTIFICATION OF PROBLEM

PHASE

FLOW
CHART

* For more details on this method see Annex E.

PDCA

OBJECTIVE

Go over the solving process for future work.

To caution against problem recurrence.

To verify that recurrence prevention was effective.

To eliminate the root causes.

To conceive a plan for each small problem in order to

eliminate the root causes.

To discover the root causes of each small problem.

To investigate the specific characteristics of the problem with

an open mind and from several points of view. To break down
a bigger problem into smaller problems.

To clearly define the problem and recognize its importance.

Table 9.2: Problem-Solving Method.

Standardize (adopt that which was successful)

Conclude

Level the base

of the equipment
Augusto

Gerson

Responsible
WHO

5/20/94

4/15/94

Time
WHEN

91

Bar rolling

Location
WHERE

Goal
0,6

To prevent
sleeve
breakage

Reason
WHY

Procedure
HOW

This is an important part

of any action plan

93

Problem

Present Situation

This action plan should be discussed

and approved by the department
head (it may involve investment). There is
one Action Plan for each small problem.

92

Eliminate that which does not work and go back to

phase 2 until you are able to reach the GOAL.
EVERY SUCH RETURN IS A PDCA ROUND.
Every PDCA round is a new action plan, a new
Three-Generation Report.

3 Regulate injectors

2 Change rollers

Countermeasure
WHAT

PLANNING PHASE
(This may take a
number of months
or be done at one
meeting, depending
on the complexity
of the problem)

Figure 9.1: Managerial Action Using PDCA.

Checking of the Control Item

Check the progress of your control item
Check the execution of the plan

PLAN EXECUTION

Set of countermeasures- 5W 1H

ACTION PLAN

Analysis (search for causes by your team)

(5 whys)

Causes

Observation (using data). Break down the

problem into smaller ones.

Small
Problem

Identification of the problem

Difference Between Goal and
Current Situation

Defect
index %

CONTROL ITEM

What has been planned

PAST

What was done

PRESENT

The results

PRESENT

Problem points

PRESENT

Proposal (plan)
to resolve problem
points

FUTURE

6 CHECK

5 EXECUTE

4 ACTION PLAN

D
E

What you
wanted to do

PLANNED

7 Standardize

Poor Result (Bad News)

Good Result

RESULTS

Why was it not possible to carry

out the production in the open 6t
vacuum tank?

3 NEW ANALYSIS

What was
bad? Why?

PROBLEM
POINTS
PROPOSAL

V
X

T
U

NEW
ACTION
PLAN

What should
be done
about the
poor results

SECTOR: Refined Product Sector

Show in graph from,

quantitatively, the good
and poor results
(merits and demerits)

8 CONCLUDE

What you
did

EXECUTED

THREE GENERATION REPORT

CONTROL ITEM: Production in t/d.
PROBLEM: Low production level.

Figure 9.2: Stages in Setting up a Three-Generation Report, showing the solution of a problem
through several PDCA rounds.

WHY
PRODUCTION
LEVEL IS LOW

3 ANALYZE

2 OBSERVE

1 IDENTIFY THE PROBLEM

1. Conducted
successfully.

2. Transport time
reduced.

3. Maintained at the
end of the period.

4. Analysis done.

5. Flowchart time
reduced from the
total lead time.

6. Run time reduced.

2. Rationalize the
transport of raw
liquid.

3. Maintain the charge

volume constant.

4. Identify bottleneck in
the flowchart.

5. Carry out logical

solutions for the
bottleneck.

6. Analyze the efficiency

of 6 t tank (open and
vacuum).

EXECUTED

1. Carry out production

experiments with a
6t tank (open and
vacuum).

PLANNED

(Month)

2 4 6 8 10 12

2.000
1.000
0

2.000
1.000
0

Graph of the evolution

of volume of
production in a 6 t tank
open and vacuum

(Month)

Graph of the evolution

of volume of
production of other
machines
(bottlenecks)

(Month)

2 4 6 8 10 12

3.000

3.000

2 4 6 8 10 12

4.000

4.000

Control graph of
index achieved with
planned charge

(Month)

2 4 6 8 10 12

Objective: 3,678t/year
Actual result: 4,419t/year
Achieved: 114,0%

100
98

102

(%)

Objective: 100%/year
Actual result: 100,3%/year
Achieved: 100,3%

Objective: 2,060t/year
Actual result: 1,450t/year
Achieved: 70,4%

Graph of the
evolution of
production volume

2.000

4.000

6.000

Objective: 5,936t/year
Actual result: 5.870t/year
Achieved: 98,9%

RESULTS

3. The Rinse Shampoo production

was less than the forecast for
the year. (Of 219 t planned for
RGSA, RGSB, RPGA and RPGB,
6 t were produced).

2. The product that should be

produced with a 6 t mixer was
produced in lots with 1 t mixer.
(RPTD 18.5%, PETK 0.5).

1. Until June, production was not

possible using the 6 t mixer
owing to problems of drop in
RPTD viscosity. (Of 260 t, only
4% were produced).

Reasons for not achieving

production in the open 6t
vacuum tank.

PROBLEM POINTS

THREE-GENERATION REPORT
SECTOR: Refined Material Production
DATE: 09/30/92

Table 9.3: Three-Generation Report.

CONTROL ITEM: Production in t/day

GOAL: Raise production volume to levels indicated
PROBLEM: Low Production Volume

(ton)

precision of sales
forecast. (Other
divisions).
Resp.: Sales Division
Deadline: Annual
meeting 12/12/92.

. Necessary to raise the

combined production
with the lot volume.
Resp.: John
Deadline: 11/30/92

. If possible, resort to

of the emulsion lot,

confirmation of the
items to ensure quality
is necessary.
Resp.: Edward
Deadline: 11/15/92

. To increase the volume

PROPOSAL

Upper
Management

DIVISION
Reports,
Documents or
Division Department Section Staff and
Standards
Manager Manager
Manager Supervision
Basic Standard

Managerial
Theory
Corporation Analysis
Managerial Resources Analysis
External Factors Analysis

Medium Term
Planning Standard

Establishment of Basic
Work and Organizational
Goals
List of Shared
Functions

Deployment of Goals and

Work Functions
NEGOTIATION: Checking of the Compatibility
Between the Work Designation and the
Organization
NEGOTIATION: Adjustment of Goals,
Production, and Control Items.

Control Cards
Companys
Standardization
Manual

Work Standardization

P-D-C-A

CHECK

Standard process
Flowchart

EXECUTION

Monthly
Report

Monthly
Report

Abnormality
Report

Monthly
Report

Top Management
Diagnosis
(monthly) (A)

Business Report

Diagnosis A
Report

Top Management Diagnosis

(occasional) (B)

Organization
Chart
Control Items
Table

Reconsideration of Annual Activities

Status Report

Diagnosis B
Report

List of Vital
Problems

Figure 10.1: Example of a Managerial Standard (Daily Work Routine

Management System).

INGOT
CASTING

PLATFORM
OPERATOR

TOWER
OPERATOR
CONTROL
PANEL
OPERATOR

INJECTION
STANDARD
BS-5201

BETWEEN
1570 and 1600C
BETWEEN
2 and 3 m/min

CARBON
IN LADLE

CASTING
TEMPERATURE
CASTING
SPEED

BETWEEN
0,45 - 0,56%

100%
(ABSENCE
OF
BLISTERS,
CRACKS
AND FAULTS

CARBON
CONTENT

SURFACE
QUALITY

SHIFT
FOREMAN

SHIFT
FOREMAN

SHIFT
FOREMAN

LEADER

WHAT MUST BE DONE BY

THE OPERATOR UPON FINDING
AN ABNORMALITY

PO-583

CONTINUOUS
RECORD
AM-031
VELOCITY
GAUGE

CORRECTION
STANDARD
BS-6881
RUN
SHEET

THERMOCOUPLE
AX-32

CORRECTION
STANDARD
BS-7318

RUN
SHEET

RUN
SHEET

LEADER

LEADER

CORRECTION
STANDARD
BS-7318
CORRECTION
STANDARD
BS-7318

WHO TO
SEEK OUT

WHAT TO
DO

CORRECTIVE
ACTION

X-RAYS

FLOW
METER
AS-536

RUN
SHEET

PRESSURE
GAUGE
AS-432

HOW TO MEASURE AND REGISTER

CONTROL PARAMETERS

ALL RUNS

ALL RUNS

ALL RUNS

RUN
SHEET

RECORD

TIMER

MEASURING
INSTRUMENT

Figure 10.2: Example of a Process Technical Standard.

WHAT MUST BE ADJUSTED

BY THE OPERATORS

ALL RUNS

BLOW
OPERATOR

BETWEEN
1 and 1,5 Nm3/t

DISCHARGE

WHAT MUST BE ENSURED

BY THE OPERATIONS

ALL RUNS

BLOW
OPERATOR

BETWEEN 2
and 2,5 atm.

BLOW
PRESSURE

ALL RUNS

BLOW
OPERATOR

BETWEEN 2,5
and 3 min.

ARGON
BLOW TIME

MEASUREMENT
(TIME/FREQ)

COMPOSITION
AND
TEMPERATURE
VARIATIONS
DURING
THE RUN
LESS THAN
3%

PERSON
RESPONSIBLE

HOMOGENEITY

STANDARD
VALUE

CHECKING METHOD
WHO WHEN WHERE HOW

CONTROL
PARAMETER

LADLE
METALURGY

WHAT

CONTROL
LEVEL

VALUE
ASSURED

QUALITY
CHARACTERISTIC

NAME OF
OPERATION

PROCESS

FLOWCHART

PROCESS

QUALITY
ASSURANCE

PROCESS ANALYSIS RESULTS ARE PLACED HERE

(THEY ARE A COMPANY SECRET)

Flowchart

Name

PROCESS

QUALITY
ASSURANCE

CONTROL
LEVEL
CHECKING METHOD

CORRECTIVE
ACTION

The lines of this document are

related to standard operational
procedures.

Indicate here what the operator should do

upon perceiving an abnormality.

Specify here who should carry out the

measurement, the frequency of the
measurement, the instrument, and the
way the form is to be filled out.

The operator adjusts these variables so

that they conform to the standards set up
by engineering.

MEANS

Figure 10.3: How to Use a Process Technical Standard.

The operator may measure and even plot these

variables on a graph, but only the supervisor
may take corrective action in case of abnormalities.
Control charts are utilized with these variables,
if needed.

The flowchart goes here,

as determined in item 3.1.

The results of the

process analysis
conducted during
the development of a
new product or
optimization of an
existing product
are placed in the two
columns shown.

QUALITY
CHARACTERISTICS

END

FLOWCHART

20 0,1 mm

40 - 60

HARDNESS

DIAMETER

SURFACE
QUALITY

HEAT
TREATMENT

BENDING
19,9

45

99

20,1 mm

55 HR

1,02

1,35

0,65

Cpk

THE RESULTS OF THE QUALITY

CHARACTERISTICS
EVALUATION ARE PLACED HERE

101 mm

HISTOGRAM

EVALUATION OF OPERATION RESULTS

Figure 10.4: Suggested Model for a Process Evaluation Report.

THIS PART COMES FROM THE

PROCESS TECHNICAL
STANDARD ( QC PROCESS CHART)

100 1 mm

LENGTH

CUT

45 - 55 HR

VALUE
ESTABLISHED BY
ENGINEERING

QUALITY
CHARACTERISTICS

QUALITY ASSURANCE

NAME OF
OPERATION

PROCESS
RESULT

PROCESS
RAW
MATERIALS

EQUIPMENT

RESULTS
450

INFORMATION

n=2

LSC = 449,79
LC = 406,31

X 400
LIC = 362,84
350
100
LSC = 75,55

ENVIRONMENTAL
CONDITIONS

50

PEOPLE

LC = 23,13

PROCEDURES

R
0

Compliance with operational procedures

by workers

9 10 11 12

MAINTAIN
DIAGNOSIS/
TRAINING
(Supervisor)

ABNORMALITY REPORT
(Operator)
5 Senses

SPECIAL

REMOVAL OF SYMPTOM
(Operator/Supervisor)
COUNTERMEASURES
AGAINST IMMEDIATE
CAUSES

YES

Day

OK
?

NO

CAUSE
?

COMMON
(CHRONIC)

ABNORMALITY ANALYSIS
(Supervisor)

ABNORMALITY REPORT
(Supervisor)

ADDITIONAL
COUNTERMEASURES
(Manager)

DAILY REVIEW
(Manager)

PERIODIC REVIEW
(Pareto Analysis)
Identification of Chronic
Abnormalities
(Manager)

COUNTERMEASURES
AGAINST
ROOT CAUSES

TREATMENT OF CHRONIC
PROBLEMS
(Manager)
A P
Problem-Solving
C D
Method
(QC Story)

6-MONTHLY STATUS REPORT

(All Managerial Levels)
(Part of Policy
Deployment)

STUDY OF STATUS REPORTS

AND SETTING OF ANNUAL
POLICIES FOR REDUCING
ABNORMALITIES
(Top Management)

The person responsible for the ACTION is indicated in parentheses.

Figure 10.5: Advanced Process Control

(This figure complements Figure 7.1).

People

Environmental
Conditions
Procedures

Information

6 Procedures should be standardized

and the work should be in accordance
with the standards.

The detailed flowchart of the

process is of fundamental
importance for assuring quality.

Product

7 The product should meet

specifications, and have maximum
economically viable reliability.
Inspection procedures should be
audited.

3 Measuring instruments should

be checked regularly for accuracy.
This measurement should be audited.

Figure 11.1: Overview of the Process Quality Assurance.

5 People should be trained

and this training should
be audited.

Equipment

Interruptions cause
variations and defects.
The machinery should not
stop. Maintenance for
maximum reliability and
availability. Maintenance
should be audited.

Raw
materials

4 Environmental conditions
should be specified: dust,
temperature, humidity, etc.

1 The quality systems

of suppliers should
be audited.

(A)
LSL

USL

LSL

USL

Nonconformity

High Dispersion

Low Dispersion

USL = Lower Specification Limit

USL = Upper Specification Limit

(B)

Temperature

Hardness

Time

Figure 11.2: Concept of Dispersion.

P
D

A
C

(Compliance with standards)

IMPLEMENTATION OF
QUALITY ASSURANCE

- Process Technical Standard or

System Standard
- Standard Operational Procedures

QUALITY ASSURANCE
PROJECT

Figure 11.3: Relationships Among Planning, Execution, and Auditing Functions in Quality Assurance.

QUALITY AUDIT
(Internal or external)

(Checking compliance with

standards)

QUALITY CHECK

CORRECTIVE ACTIONS
FOR THE PLANNING,
EXECUTION, AND
AUDITING PROCESSES

Customers

CARRYING
OUT
QUALITY

QUALITY
PLANNING

THE CONCEPT OF QUALITY

ASSURANCE

A P
C D

ENGINEERING

SPECIFICATION
OF MATERIALS

PROCESS
DESIGN

PRODUCT
DESIGN

CUSTOMER
NEEDS

STANDARDS

DAILY WORK ROUTINE MANAGEMENT

A
SUPPLIERS

CUSTOMERS

COMPLIANCE WITH STANDARDS

AUDIT OF
SUPPLIERS
QUALITY
CONTROL SYSTEM

PROCESS
AUDIT

PRODUCT
AUDIT

QUALITY
ASSURANCE
C

CUSTOMER
COMPLAINTS
AND CLAIMS

NONCONFORMITY
REPORT

Figure 11.4: Arrangement of the Various Activities that Ensure Quality

for Customers.

INTERNAL AUDIT OF STANDARD

OPERATIONAL PROCEDURE (SOP)

COMPANY B
AUDITOR
AUDITEE
POSITION

JOHN SMITH
WILLIAM WALKER
FURNACE OPERATOR

LOCATION: FURNACE PLATAFORM

DATE: 03/16/93 AUDIT N 32
S.O.P.: PLACE LADLE ON SUPPORT

QUESTIONNAIRE:
1
2
3
4
5
6

IS THE S.O.P. IN THE AREA?

DOES THE S.O.P. HAVE ANY CHECK LIST FOR QUICK CONSULTATION?
DOES THE OPERATOR HAVE QUICK ACCESS TO THE S.O.P. FOR CONSULTING?
IS THE LATEST VERSION OF THE S.O.P. AVAILABLE IN THE WORK AREA?
ARE THE REVISED ITEMS CLEAR TO THE OPERATOR?
ARE THE CONDITIONS REQUIRED BY THE S.O.P. MET IN TERMS OF:
6.1 - MACHINES, EQUIPMENT
6.2 - AREA CONDITIONS
6.3 - SAFETY
6.4 - RAW MATERIALS
6.5 - OTHERS (________)?

7 - IN ACCORDANCE WITH THE S.O.P., ARE THE MAIN ITEMS BEING FOLLOWED IN TERMS OF:
7.1 - LOCATION FOR SIGNS
( ) YES (x) NO 7.6 - _____________________________
7.2 - USE OF EPIS? __________ (x) YES ( ) NO 7.7 - _____________________________
7.3 - _______________________ ( ) YES ( ) NO 7.8 - _____________________________
7.4 - _______________________ ( ) YES ( ) NO 7.9 - _____________________________
7.5 - _______________________ ( ) YES ( ) NO 7.10 - _____________________________

(x) YES
(x) YES
(x) YES
(x) YES
(x) YES

(
(
(
(
(

) NO
) NO
) NO
) NO
) NO

(x) YES
(x) YES
(x) YES
( ) YES
( ) YES

(
(
(
(
(

) NO
) NO
) NO
) NO
) NO

(
(
(
(
(

(
(
(
(
(

) NO
) NO
) NO
) NO
) NO

) YES
) YES
) YES
) YES
) YES

IN CASE AN ESTABLISHED ITEM IS NOT BEING FOLLOWED, DESCRIBE THE REASON

________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
WHAT ALTERNATIVE IS SUGGESTED BY THE OPERATOR?
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
8 - DOES THE S.O.P. SPECIFY A CORRECTIVE ACTION WHEN THE ITEM IS NOT FOLLOWED?
9 - ARE SUPERVISORY PERSONNEL ADVISED OF THE CORRECTIVE ACTION?
10 - DOES THE OPERATOR REQUIRE RETRAINING?
11 - GENERAL CONDITIONS FOR CARRYING OUT THE S.O.P. ACCORDING TO THE AUDIT
( ) BAD

(x) YES ( ) NO
(x) YES ( ) NO
( ) YES (x) NO

( ) AVERAGE (x) GOOD

(x) YES ( ) NO

12 - DOES THE S.O.P. REQUIRE REVIEW?

WHY? ____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________

OBSERVATIONS: ________________________________________________________________________________________
______________________________________________________________________________________________________
______________________________________________________________________________________________________
______________________________________________________________________________________________________

Figure 11.5: Example of a Standard Operational Procedure Audit Report.

FOLLOW-UP METHOD

CONTROL
ITEMS OF
THE CHIEF

Reduce to 10
cases/year
CHART
AND
HIST.

Get to 100% within

specifications

Tensile strength

Number of client
complaints

QUALITY
COST

SOUZA
TELLES
TRAJANO
TELLES
AGUIAR

B
A
C
C
B

TIMETABLE

20 b /
min
0.1%

Coil loading
rate
Scrap
rate

Low relationship
Lack of relationship

Medium relationship

Strong (direct) relationship

CAPTION:

94%

JANUARY

50%

NOVEMBER
Availability of the
roller

SEPTEMBER
OCTOBER
Production losses
from broken bearings

CHECK
ITEMS
OF THE
CHIEF

GOALS

Figure 12.1: Process of deployment of the policies and their introduction into the annual action plan
from the first managerial level.

ANNUAL
ACTION PLAN
OF THE FIRST
MANAGERIAL
LEVEL

4. Reduce losses from

cracks
5. Reduce package
losses

2. Reduce bearing
breakage
3. Increase coil loading
rhythm

1. Reduce roller stops

PROJECTS

GOALS
OF THE
CHIEF

PRIORITY

ANNUAL GOALS OF THE

FIRST MANAGERIAL LEVEL

RESPONSIBLE

METHOD FOR
REACHING THESE
GOALS

MAY

ANNUAL GOALS OF
THE MANAGERS

APRIL

METHOD FOR
REACHING THESE
GOALS

FEBRUARY
MARCH

ANNUAL GOALS OF
THE DIRECTORS

JUNE

METHOD FOR
REACHING THESE
GOALS

JULY
AUGUST

ANNUAL GOALS OF
THE CEO

DECEMBER

TRACKING METHOD

SUPERVISORS
CONTROL
ITEMS

5. Reduce packaging
losses

4. Reduce crack losses

1. Reduce rolling-mill
stoppage
2. Reduce sleeve
breakage
3. Increase spool
exchange speed

AND
HIST.

GRAPH.

SOUZA
TELLES
TRAJANO
TELLES
AGUIAR

PRIORITY

B
A
C
C
B

50%
20 b /
min
0,1%

Production losses
by sleeve breakage
Spool charge rate
Waste rate

No relation

Weak realtion

Average relation

Very strong relation (Direct)

KEY:

94%

NOVERMBER
DECEMBER

Rolling-mill
availability

SUPERVISORS
CHECK ITEMS

CRONOGRAMA

Figure 12.2 : Annual Action Plan of a Basic Managerial Unit.

GRAPH

Number of customer
complains

PROJECTS

COST

JANUARY
FEBRUARY
MARCH
APRIL
MAY
JUNE
JULY
AUGUST

QUALITY

SEPTEMBER
OCTOBER

SUPERVISORS
GOALS
PERSON
RESPONSABILE

ACTION PLAN OF THE FIRST MANAGERIAL LEVEL

Reduce to
10 cases/year
Attain 100% of
specifications
Tensile strength

GOALS

FIRST
MANAGERIAL
LEVEL

SENIOR
MANAGER

DIRECTOR

PRESIDENT

ANNUAL
ACTION PLAN

A P
C D

PROJECT B GOALS

Figure 12.3: Annual Policy Deployment.

FIRST
MANAGERIAL
LEVEL POLICY

A P
C D

PROJECT A GOALS

SENIOR MANAGERS
POLICY

DIRECTORS
POLICY

PRESIDENTS
POLICY

ACTION PLAN
PROJECT B

ACTION PLAN
PROJECT A

SUPERVISORS

WORKERS

SUPERVISORS

SUPERVISORS

TECHNICAL
SUPPORT

FIRST MANAGERIAL
LEVEL

SUGGESTIONS
SYSTEM

A P
C D

Figure 13.1: Continuous Improvement Activities carried out in the Basic Managerial Units.

QUALITY
CONTROL
CIRCLES

A P
C D

ATTAIN
MANAGERIAL
GOALS

A P
C D

...

HUMAN NEEDS

BASIC NEEDS OF HUMAN

BEINGS

SIMULTANEITY
OF NEEDS

SELF-REALIZATION
Realization of your own potential,
self-development, creativity,
self-expression

SELF-REALIZATION

EGO OR ESTEEM
Self-confidence, independence,
reputation, etc.

SECURITY
Protection for yourself and
your family.
Stability at home and at work.

PHYSIOLOGICAL
Survival, food, clothing, and
shelter.

HUMAN GROWTH

SENSE OF BELONGING
Feelings of being accepted,
friendship, association, feeling of
belonging to the group.

EGO OR ESTEEM

SENSE OF
BELONGING

SECURITY

PHYSIOLOGICAL

Figure 13.2: Basic human needs, whose satisfaction are preconditions

for motivation.

MEANS

WASTE

WASTE

MEANS

MEANS

INCONSISTENCY

GOAL

GOAL

GOAL

"END

PRODUCT

MEANS

INSUFFICIENCY

INSUFFICIENCY

Figure 14.1: The Concept of the Three Sources of Losses.

GOAL

INCONSISTENCY

PROCEDURES

ENVIRONMENTAL
CONDITIONS

PEOPLE

"MEANS

INFORMATION

EQUIPMENT

RAW
MATERIAL

PROCESS

GOAL

ORIGIN OF
PROBLEMS

P R O C E S S

HUMAN
RESOURCES

RAW
MATERIALS

EQUIPMENT

utilized?

- Are the machines and tools being well-

- Is there any idle equipment?

layout?

- Is there any waste due to inadequate

- Is the equipment being underutilized?

- Is there corrosion prevention?

project?

- Is there any waste due to the process

- Is there energy waste?

- Is the rate of rejection high?

where cheaper ones might suffice?

- Are expensive raw materials being used

- Are yields low?

right time?

- Are the right tools in the right place at the

- Is there waste due to bad planning?

- Is there any movement wasted?

- Is there any job that does not add value?

WASTE

reasonable way or in a wasteful way?

- Is there any equipment being used in a

machines well balanced?

- Are the production capacities of the several

- Do the products have uneven finishing?

supervision?

- Are the machines getting enough

used for high-precision tasks?

- Are there low-precision machines being

from use above their capacity?

- Is the life of the machines being harmed

suppliers?

- Is there any insufficiency in items from

- Is there any insufficiency due to project?

- Are there any irregularities in the properties

of the materials?

- Is the strength enough for ensuring safety?

end of the job?

- Are there people who get too tired at the

machines and is being done manually?

- Is there any job that could be done by

- Is the quality of the materials uniform?

- Are people too busy at certain times and

having nothing to do at other times?

- Is there a good mix of experienced and

inexperienced staff members?

- Are there enough people to face the work

- Are there areas where people are

exhausted, and other areas where there is
nothing to do?
load?

INSUFFICIENCY

INCONSISTENCY

Table 14.1: The Technique of the Three Sources of Losses

MARKET RESEARCH

Identification of
consumer needs

A product that is better,

cheaper, and delivered more
quickly than the competitors

Product
- Better
- Cheaper

Design of new
product

Survival

- Safer
- Faster Delivery
- Easier Maintenance

Design of new
process

Definition
Satisfied
customer

Process
- Easier
- Better
- With less dispersion
- Cheaper

Production

- Faster
- Safer
Technical
assistance

Figure 14.2: Concept of Survival According to Miyauchi(12).

Improve the current way of working (KAIZEN)

Operate ever more efficiently a process that has

waste built into its design.

A P
C D

Eliminate waste contained in the design itself of

a previous process.

Promote drastic changes in the way of working

(INNOVATION)

Seek the ideal way of working (new process)

Reject the current way of working (process)

DRASTIC
IMPROVEMENTS

Figure 14.3: Comparison between Successive Improvements and Drastic Improvements.

Analyze the current way of working (process)

Accept the current way of working (process)

A P
C D

SUCCESSIVE
IMPROVEMENTS

CONTINUOUS IMPROVEMENT

ACTION

PLAN
DEFINE
GOALS
ACT IN THE PROCESS
ACCORDING TO
THE RESULTS

A P
C D
CHECK THE
EFECTS OF
THE WORK
DONE

DETERMINE
THE METHODS
TO REACH THE
GOALS

EDUCATE
AND TRAIN

EXECUTE
WORK

CHECK

Figure A.1: PDCA - Process Control Method.

DO

MANAGEMENT TO SUSTAIN RESULTS

STANDARD GOAL

STANDARD GOAL:
Standard Quality, Standard Cost, etc.

STANDARD OPERATIONAL PROCEDURE (S.O.P):

S.O.P. to attain the standard goals.

DO:
Comply with the S.O.P.

CHECK:
Confirm the effectiveness of the S.O.P.

SUSTAIN

450

n=2

UCL = 449,79
LC = 406,31

X 400
LCL = 362,84

350
100
UCL = 75,55
50
YES

EFECTIVE
?
NO

LC = 23,13

R
0

9 10 11 12

Day

CORRECTIVE ACTION:
Removal of the symptom.
Act on the cause.

Figure A.2: Detailed PDCA to Sustain Results.

MANAGEMENT TO IMPROVE
IMPROVEMENT GOAL

PROBLEM:
Identification of the problem.

PHENOMENON ANALYSIS:
Break down the problem in smaller problems.

PROCESS ANALYSIS:
Detection of main causes of each smaller problems.

ACTION PLAN:
Countermeasures against main causes of each
smaller problem.

DO:
Execute the Action Plan.

CHECK:
Confirm the Actions Effectiveness.

BETTER

NO

EFECTIVE
?

Number of
complaints per
month

GOAL

YES

92

93

94

STANDARDIZATION:
Definitive elimination of causes.

CONCLUSION:
Review of activities and planning for future tasks.

Figure A.3: Detailed PDCA for Improvement.

A S
C D

PRODUCTS

STANDARDIZATION

A P
C D

ANNUAL
GOALS

MAINTAINS

IMPROVES

Figure A.4: PDCA applied with the goals of maintaining and improving.

CORRECTIVE
ACTION

PERIODIC
REVIEW OF
PRIORITY
CHRONIC
PROBLEMS

PRIORITY
CHRONIC
PROBLEMS

ANNUAL POLICIES OF TOP MANAGEMENT

(KAIZEN)

"EXISTING PROCESS

TIME

C D

A P
"EXISTING PROCESS

INNOVATION
(KAIKAKU)

"NEW PROCESS

C D

A P

Figure A.5: Combination of Cycles for Sustaining and for Improving which make up Continuous Improvement.

LEVEL OF
RESULT

C D

A S

CONCEPT OF CONTINUOUS IMPROVEMENT

CONTROL

SHIFT ABNORMALITY
ANALYSIS REPORT

COMPANY B
SHIFT: 3

CREW

NUMBER: ___/___

DATE: 03/15/12

BRIEF DESCRIPTION OF ABNORMALITY/COMPLAINT:

Run with % of carbon above that intended.

DESIRED RESULT:

Carbon percentage = 0.093%.

RESULT OBTAINED:

Carbon percentage = 0.120%

DIFFERENCE:

Excess carbon percentage = 0.027%

BRAINSTORMING (POSSIBLE CAUSES):

Error in calculating amount added, lack of stop control in standard operational procedure.
Operators carelessness.

MOST PROBABLE CAUSES:

Machine

Labor

Environment
Operators carelessness
in regard to graphite
residue in cannon
Lack of stop
control in standard
operational procedure

Run with a high

percentage of carbon

Method

Raw material

ROOT CAUSE(S):

- Lack of stop control in standard operational procedure.

- Operators carelessness in regard to possible graphite residue in the cannon.
ACTION PLAN
WHAT

WHO

HOW (WHEN APPLICABLE)

WHEN

1 - Introduce stop control

(item 2) into the standard
procedure

Jason

Revising present standard

Immediately

2 - Make sure that the cannon

is empty

Furnace
operator

Injecting nitrogen into cannon

until it is thoroughly clean

When recarburizing
the runs

3 - Limit carbon content range

to 0.085-0.105%

Cid

Sending note to quality

assurance department

Immediate

4
6

Section:
Shift:

OP Number:

Control

Shift abnormality
analysis report

COMPANY "E"

2
1
N:
____/____
3
Date:____/____/____
C.C.:

Crew:
8

Description of OP:

Machine/Line:
Operator:

Detected by:

10
11
12
13

Time:
Investigation of Causes:
Raw material

Equipment

Information

14

15

16

Abnormality

20
17

18

19

Environmental
Conditions

Personnel

Procedures

Why did the abnormality occur?

Probable cause:

21

22

Action Plan
What to do

23

Who

How to do it

When

24

25

26

Additional Information:
27

Supervisors comments:
28

29
Supervisors signature

ABNORMALITY ANALYSIS REPORT

COMPANY "C"
Unit:

Shift:

CORPORTATE

Date:

03/15/12

ONE SHIFT ONLY

Management Area/Department

Department/Sector:

FINANCIAL MANAGEMENT

BILLINGS CREDIT

1. IDENTIFICATION

Abnormality:

Unwarranted collection

Removal of Symptom:

Approval letter written for notary. Certification of no payment requested.

Fact communicated to SCI and SERASA.
Time:

Location:

Operator:

2. OBSERVATION

Billings
Type:

Customers complaint
Symptom:

Protest
Negative File

CUSTOMER

BANK

- Direct payment

NOTARY
- Didnt honor
instruction

3. ANALYSIS

- Payment after due

date
- Did not recognize
collection

- Didnt honor instruction

- Did not instruct

notary

UNJUSTIFIED
COLLECTION

- Did not issue

instructions

BILLINGS

- Delay in delivering
invoice
- Delay in delivering
- Error due date
merchandise

INVOICING
LACK OF STANDARD
PROCEDURE

TRANSPORT

Department Chief (Name/Signature):

(What was done)

1 - Devise a procedure for

writing off settled duplicates
2 - Train team
3 - Follow-up

03/31/12
04/08/12

4.3. Date Limit (When)

(What was observed after the action)

Moacir
Moacir/Cludia

Cludia

6. CHECK

4. ACTION PLAN - 5W 1H

5. ACTION

4.2. Person in charge

(Who)

9. GAINS (US$)

Manager/Department Chief Foreman (Name/Signature):

(Should the standard

be changed?)

4.4. Observation (How/Why/Where)

7. STANDARDIZATION

4.1. Action (What to do)

8. CONCLUSION

PROCESS ABNORMALITY REPORT

Occurrence of the
abnormalities

COMPANY X, INC.
Name of the
Machine

ENT-86814

Control Chart
Number

Name of the
Process

Pre-Test

Lot Number

Quality
Characteristic

Electrical behavior
(oscillation)

Operator
Inspector

Date and Time of

Occurrence

20-2-Tuu-A3-2

February 15
5:00 p.m

Akemi Yoshikawa

3% stratification on the control chart, showing errors in electrical

3,0
oscillation chart in pre-test
UCL = 1,12

Detected by

LM = 0,3

Tabuchi
Investigation of the
Cause

In the past, the position of the cam was determined in relation to the groove on
the axle shaft (that is, by dimension C). To improve efficiency, the welding guide
for the cam was determined by dimension B.
Owing to burrs and other irregularities at the
Cam
Rotor
Dimension B
Weld
axle end of the rotor axle, this increased the
Dimension C
variation in dimension C, causing obstruction
Burr
of the chassis by the cam and altering
Interference
electrical oscillation.
Chassi

Dimension A

It is desirable to use the current guide to guard against future increases in

production.

When welding a floor spring, check to see if

the cam is interfering with the chassis.

During the rotor assembly process, correct

the cam of the rotor axle welding the guide.

Connection with pertinent

departments

When
?
Who
?
When
?
When
?
When
?

February 16
Tabuchi
Day/Month

Day/Month

When
?

Emergency Action

February 17
The investigation requires
that the case be sent to the
technical department.
(UTU - 014)

1
2

Who
?

Tabuchi

When?

February 17

Checked
by?

Tokuno

Actions to prevent
recurrence

Prevention of recurrence
During the rotor assembly process, control the axle by cam dimension
(dimension B) with an X - R control chart (after February 17)

Confirmation of the
efect of the action
to prevent
recurrence

Emergency
action

Investigation of the causes

9 10 11 14 15

After changing Dimension A, no electrical oscillation error occurred.

As the control chart for electrical oscillation errors continued to show zero
defects, it was discontinued.

When
?

March 8

The X - R control chart for the dimension of the weld of the rotor/cam was also
discontinued.

Who
?

Tokuno

Change in the dimensions of the part where the chassis enters in contact
with the cam (Dimension A) from 5.5 to 6.5 mm.

To be kept on file for 3 years

Format Number TG-Q001

Regulation Division
MP Warehouse, Production Section,
Assembly Crew UHF

When
?

February 28

Who
?
Confirmation
of details
of the action

Tokuno
Aoki

Checking

Section
Chief

Supervisor

Leader

Aoki

Tokuno

Tabuchi

* According to an original of Kaoru Ishikawa in Introduction to Quality Control, p.299.

Abnormality Report Model(13).

~
~

Shipment

Packaging

Packaging Process

Finishing Process

PROCESS

PRODUCTION

BOARD

CIRCUIT

PRINTED

TOTAL PROCESS

Figure C.1: Difference Between Flowchart and Macro Flowchart(18).

Complete inspection of product

Flux coating

Corrosion prevention

Water wash

Degreasing and dust removal

Inspection of process

Printing Process

MACRO FLOWCHART

FLOWCHART

Circuit board cutting

GROUPED PROCESS

SINGLE PROCESS

Table C.1: Flowchart Symbols

Symbol

Meaning

Meeting
or

Action

Checking

Request by
board

Partnerships
Constitution
Merge
Incorporation
Transformation
Alteration

COMPANY C

Documents prepared
for commerce board
federal treasury

Payment
documents
provided
Documents sent
to commerce
board
Documents received
from commerce
board
INC

Documents prepared
for publishing

Payment
made
IOSEC sent
for publishing
DOE publications
received

LTD.
INC.

LTD.

Documents for
federal treasury
prepared
Payment
bill provided
Document to state
treasury sent
Document from
state treasury
received
Charter
provided
Documents
distributed and
original filed
END

Table C.2: Simplified Conventions for Flowcharts.

Work
a

Operation that causes changes in the form and

properties of materials, components, or product.

Transport

Operation that causes changes in the position of

raw materials, components, or products.
1/2 to 1/3 of a

Planned
stock

Unplanned
stock

Quantity
inspection

Quality
inspection

Operation of stocking up raw materials, materials,

components, or products according to a plan.

State of congestion of raw materials, supplies,

components, or products, contrary to plan.

Operation to obtain the difference of results, using

as a reference the quantity of raw materials,
materials, components and products.

Operation for judging the conformity of a lot or

good quality of a part, testing the quality
characteristics of the raw material, supplies,
components, or product and comparing the results
with a reference.

* See the book Padronizao de Empresas, p.93, for more details.

Flowchart conventions may also be combined if operations occur

simultaneously.
Table C.2: Continuation.

Composite
Symbol

Meaning

While the main focus of inspection is quality,

quantity inspection is also carried out.

While the main focus of inspection is quantity,

quality inspection is also carried out.

While the main focus is on doing the work,

quantity inspection is also carried out.

While the main focus is on doing the work,

transport is also being attended to.

Shield
Legs

Shield

Armature

Inductor

Axle

Ventilator

Clamp
A

Clamp
B

Perforation
and contraction
of the area
Work on
external
diameter

st

Perforation
Dimensions
and return

Dimensions
and return

~
Folding

1st package/time

1 winding/time

Winding

Perforation

st

1 part/time

Drillingand
contraction
of the area

Initial
work

Drilling

1st part/time

Final
work

Drilling

Armature

Dimensions
and return

Dimensions
and return

Hole of
class

Drilling

Drilling

Dimensions

For 1 motor
a time

Armature

Rotor

1st part/turn

Quantity
dimensions

Dimensions

Clamp
B

Grinding

Clamp
A

240 parts/
time

Output
dimensions

240 parts/
time

Pre-treatment

4 parts

Weld

Pre-treatment

15 parts/
pallet

4 parts/
hanger

Shield
legs

Insertion of
bearing

Painting

240 parts/
each time

Voltage
polarity

Loading

24 parts/
pallet

~
=

Shield

50 parts/
pallet

Nest

Axle

Insertion of
axle

Reception
inspection

1 part/time

Cover

Work on
external
diameter

240 parts/
time

Finish

Weld
15 parts/
pallet
Coupling

Screws

Remove from
box

Washers

Remove from
box

Dimensions
of connection

Balancing

15 parts/
pallet

Rotor

Assembling

Nuts

24 parts/
pallet

Rolling

24 parts/
pallet

Rolling Insertion

Remove from
box
Assembling
1 part

Clamp B
Inductor Inductor

Shield
Ventilator

Test of characteristic value

1 part

Bearing
Box for
Packaging

Painting
1 part
# of final inspection completion

Axle
Clamp

120 motors/a time

Monophase Induction Motor

Rotor

Example of a Process Flowchart.

Shield Leg

Table D.1: Method for Receiving a Consultant.

Clearly establish your GOAL and discuss it with the

CONSULTANTS TEAM (if there is a contract, put this in).

Gather information on the subject.

Set up a team mixing your people with the consultants

and conduct an analysis by asking What have been the
causes that have kept us from achieving our goal up until
now? (See table 3.1)

This mixed team must then, set up an Action Plan,

which consists of COUNTERMEASURES against the
causes (See Tables 3.1 and 3.2).

Execute.

C
NO

SUCCESS
YES

Check. Make a Three-Generation Report (See Table

9.3). Discuss the report with the CONSULTANTS and
ask for advice:
(a) Is the plan lacking something?
(b) Why wasnt the goal achieved?
(c) What should be the next steps?
The CONSULTANTS should go over steps 3 and 4
with you and your team until the goal is attained.

Standardize.

Conclude the project.

PDCA

Phenomenon Analysis

7
Conclusion

Standardization

(Was prevention of
recurrence effective?)

To recapitulate the entire problem - solving process for

future work.

To prevent recurrence of the problem.

To check if the action was effective.

Checking

To eliminate the root causes.

Execution

To conceive an action plan for each smaller problem to

eliminate the root causes.

Action Plan

To detect the root causes of each smaller problem.

Process Analysis

To break down the problem into smaller problems.

To define the problem clearly and recognize its importance.

OBJECTIVE

Problem identification

PHASE

FLOWCHART

Table E.1: Problem-Solving Method - QC STORY.

Tracing history
of the problem

Selecting the
problem

Assigning
responsibilities

Doing a
Pareto analysis

Showing current
losses and
viable gains

Tasks

Flow

IJKL

EFGH

M A

J
A

Better

Assignment of responsibilities

ABCD

Pareto
analysis

Present

Always use historical data

Propose a deadline for solving the problem.

Appoint the person or group that will be in charge. Designate the group
leader.

A Pareto analysis makes it possible to prioritize topics and to establish

viable numerical goals. Subtopics may also be established if necessary.
Note: Do not look for causes here; only undesirable results. Causes will
be sought in phase 3.

What is it possible to gain?

What is being lost?

How does it occur?

What is the frequency of the problem?

A problem is the undesirable result of a job (be sure the problem chosen
is the most important, based on facts and data). For example: loss of
production owing to equipment stoppage, overdue payments,
percentage of defective parts, etc.

Areas general policy

(Quality, delivery, cost, morale,
safety)

Graphs
Photographs

Observations

Tools Utilized

Phase 1 - Problem Identification

Losses

Flow

Timetable,
budget and goal

Discovery of the
characteristics of the
problem by means of
observation on site

Important
recommendation:
the more time you
spend here, the
easier it will be
to solve the
problem. Dont skip
this part!

Discovery of the
characteristics of the
problem by means of
the gathering of data.
Break down the
problem into smaller
problems.

Tasks

IJKL

EFGH
F

PHASE
Analysis
Action Plan
Execution
Check
Standardization
Conclusion
1

Go to the place where the

problem occurred

ABCD

PRIORITIZING
Choose the most important themes
and go back

PARETO CHARTS

CHECK LIST

STRATIFICATION

PARETO ANALYSIS

Tools
Employed

Make a timetable as a reference. This timetable should be updated for each phase.
Make a budget.
Define a goal to be reached.

Should not be done in the office, but at the site of the event itself for the gathering
of supplementary information that cannot be obtained in the form of numerical data.
Use a video camera and photographs.

Observe the problem from several angles (stratification):

a. Time - Are the results different in the morning, in the afternoon, in the evening,
on Mondays, on holidays, etc.?
b. Place - Are the results different in different parts of a part (defects at the top,
at the base, on the sides)? In different places (accidents in corners, in the
middle of the streets, on sidewalks), etc.?
c. Type - Are the results different depending on product, the raw material, the
material used?
d. Symptom - Are the results different whether the defects are cavities or
porosity, whether absenteism is due to absence or sick leave,
whether the stop is due to the burning-up of a motor or mechanical failure,
etc.?
It will also be necessary to investigate specific aspects, such as air moisture,
room temperature, gauge instrument conditions, standard reliability, training,
who is the operator, which team worked, what are the weather conditions, etc.
"5W1H" - Ask the questions: what, who, when, where, why and how to gather data.
Build several Pareto charts according to the groups defined in stratification.
Set up a goal and an action plan for each smaller problem.

Observations

Phase 2 - Phenomenon Analysis

No

No

Yes

Did you confirm

a most probable
cause?

Consistency test
of root cause

Analysis of most
probable causes
(hypothesis
verification)

Yes

Screening of most
probable causes

Definition of
contributing
causes
(for each smaller
problem)

Tasks

Flow

B
D

B C D

10

20

Is there technical evidence that it is

possible to prevent recurrence?
Would recurrence prevention generate
undesirable defects?

100%

Collection of new data about the most

probable causes, using a check list.
Analyze collected data.
Testing of the causes.

If recurrence prevention is technically impossible, or if it can produce

undesirable effects (scrapping, high cost, rework, complexities, etc.), it
may be that the determined cause is not the root cause but rather an effect
of it. Consider the cause as a new problem and ask again why and go back
to the beginning of the flow of this process.

Based on the results of the experiments, you will confirm or not confirm
the existence of a relationship between the problem (effect) and the most
probable causes (hypothesis).

Visit the locations where hypotheses apply, collect information.

Stratify the hypotheses, collect data using the check list as an aid. Use
Pareto to prioritize, a relational diagram to test the correlation between
the hypotheses and the effect. Use a histogram to evaluate the dispersion
and graphs to check trends.
Test the hypotheses through experiments.

More probable causes: the number of causes listed in the previous task must be
reduced by elimination of the less-probable causes. Based on data collected
during the observation process, take advantage also of suggestions based on
the experience of the group and hierarchical seniors; also, based upon
information collected during observation, prioritize the most probable causes.
Be careful with cross effects: problems that result from two or more factors
simultaneously. Pay special attention to these.

Identification through cause and effect

diagram
A

Setting up a work group: involve all those who can contribute to the
identification of the causes. Meetings should be participatory.
Cause-and-effect diagram: write down the largest possible number of
causes. Set up a cause-and-effect relation between the causes listed.
Construct the cause-and-effect diagram placing the more generally based
causes on the larger branches, and secondary and tertiary causes, etc., on
the smaller branches.

Observations

Brainstorming and cause and effect

diagram
Question: Why does the problem occur?

Tools Utilized

Phase 3 - Process Analysis

Designing
of an action
strategy

Carrying out
the action

Training

Designing of
an action plan
for recurrence
prevention and
revision of the
timetable and
final budget

Tasks

Flow

NEI

WHAT

STANDARD

AXLE

FLOOR

PIN

Plan and timetable

Training techniques

Dissemination of plan to everyone

Participatory meetings

EDU

TO CHANGE
TO CHANGE

RUI

WHO
ELI

TO CLEAN

TASK
TO MEASURE

Observations

Define what is to be done (What)

Define when it is to be done (When)
Define who will do it (Who)
Define where it will be done (Where)
Clarify why it is being done (Why). Detail or delegate the
detailing of how it will be done (How)
! Determine the goal to be attained and quantify it ($, tons,
defects, etc.).
! Determine the control items and the check items of the various
levels involved.

!
!
!
!
!

! Make sure that actions are being taken on the root causes and
not on their effects.
! Make sure that the actions proposed do not produce secondary
effects; if these do occur, take action against them.
! Propose diferent solutions, analyze the effectiveness and cost of
each; choose the best.

During execution, physically check on location whether actions

are being carried out.
All actions and the good and bad results should be recorded in a
form, on the date when they were taken.

! Check which actions require the active cooperation of all. Give

special attention to these actions.
! Clearly present the tasks and the reason for them.
! Be sure that everyone understands and agrees with the measures
proposed.

Phase 5 - Execution

ow?
Who? H hy?
?W
Where hat?
W
When?

"5W1H", timetable, costs

Discussion with group involved

Discussion with group

involved

Tools Utilized

Phase 4 - Action Plan

Checking whether
the problem
persists

Listing secondary
effects

Was recurrence
prevention
effective?

Comparing
results

Tasks

Flow

BEFORE

C
E

A
D

Analyze

BEFORE

MONTHS

Checking

Better

LIC

LC

LSC

AFTER

A S O N D

Action

J F M A M J J

Question: Was the root cause

effectively identified and recurrence
effectively prevented?

AFTER

Utilize the information previously obtained for making the

decision.
If the solution was faulty, go back to phase 2 (Phenomenon
Analysis).

When the results of the action are not as satisfactory as

expected, check whether all the planned actions were
implemented according to plan.
When the undesirable effects persist, even after the
recurrence prevention action, this means that the solution
presented was faulty.

Any alteration in the system may entail positive or negative

secondary effects.

Data used should be collected both before and after action

to prevent recurrence, to check the effectiveness of the
action and the degree of reduction of the undesirable
results.
Comparison formats should be the same before and after
the action is taken.
Convert and compare the effects, also in monetary terms.
Check if all actions were implemented.

Pareto, control charts, histograms.

l

Observations

Phase 6 - Checking
Tools Utilized

Defects

Communication

Education and
training

Development
or alteration of
standard

Monitoring
utilization
of the standard

Tasks

Flow

A P
C D

System for checking observance of standard.

Meetings and lectures.

Training manuals.
On-the-job training.

Communiques, newsletters, meetings, etc.

Set up the new operational procedure or revise

the old one using 5W1H.
Whenever possible, incorporate a foolproof
mechanism.

Tools Utilized

Observations

Avoid the reappearance of an already solved problem because of laxity

in complying with standards:
Set up a periodic check system;
The supervisor should periodically observe his subordinates to ensure
compliance with standard operational procedures.

Make sure that the new standards or the changes in existing

standards are passed on to all those involved.
Do not communicate solely through documents. The reasons for
changes must be explained, and the important features and changes
made clear.
Make sure that employees are able to execute the standard
operational procedure.
Provide on-the-job, on-site-training.
Provide documents at the location where they are needed and in the
form necessary.

Avoid possible confusion: set up the beginning date for new systems
and the areas to be impacted, so that the standard may be applied at
all necessary locations, at the same time and by all involved.

Make clear in the operational procedure what, who, when,

where, how, and principally, why, as regards activities that
should really be included or altered in the existing standards.
Check if the instructions, decisions, and procedures contained in
process 5 should be changed before being standardized, based on
results obtained in phase 6.
Use your creativity to ensure that problems will not recur. If possible,
incorporate foolproof mechanisms into the standard, so that the
work can be done without error by any worker.

Phase 7 - Standardization

Tasks

Listing of
remaining
problems

Planning for
attacking
remaining
problems

Reflection

Flow

3
More
complete
check sheets

Analyze the stages of the problem solving method regarding the

following aspects:
1. Timetable - were there significant delays or too generous
deadlines? Why?
2. Was elaboration of the cause-and-effect diagram superficial?
This would be an indicator of the degree of maturity of the team
involved. The more complete the diagram the more able the
team.
3. Was there group participation? Was this the best group to solve
this problem? Were the meetings productive? What could be
improved?
4. Did the meetings occur without problems: absenteeism,
disputes, imposing of ideas?
5. Was the assignment of tasks well done?
6. Did the group gain knowledge?
7. Did the group improve the problem solving technique? Did it use
all the techniques?

Careful reflection on the problem

solving activities themselves.

Improve the
timetable

Improve
cause and effect
diagram

Re-evaluate pending items, organizing them for a future

application of the problem-solving method.
If there are problems connected with the very way the
problem solving was approached, this can become a subject
for future projects.

nonproductive. The ideal situation practically never exists; limit,

therefore, activities when the original time limit has been
reached.
List those things that were accomplished and those that were not.
You should also show results that are above expectations; they are
important indicators for increasing efficiency in future work.

Spending a very long period of time on seeking perfection may be

Observations

Application of problem solving

method to problems which are
important.

Analysis of results.
Graphic representations.

Tools Utilized

Phase 8 - Conclusion

Processes

Secondary
classification

Secondary
pressure

Painting of
base

Carbon
impregnation

Carbon
impregnation

Surface
treatment

Inspection
upon
receipt

Sample

Control
Item
Zeta

Micro
meter

Visual

Measurement
instrument

Thermal
resistance
Resistance to
solvents
Resistance to
vibration
Useful life of
charge
External
dimensions

Solderability

Eletrical
resistance
Thermal
impact

By
lot

Paint
preparation
by lot

By
lot

Test

Gravitometer

Standard

meter
Vacuum
meter
Thermocouple
CR-AC

Figure F.1: Example of a Process Technical Standard.

Resistance
of lid

Specific
weight

Membrane
resistance

By
carbon
impregTemperature
nated
lot

Degree of
vacuum

By
Concentration
measurer
of liquid:
treated
Chronotime
lot

External
appearance By road
lot
External
dimensions

Standard
operational
procedure
RZ-11-08

IP-20-43

RP-00-33

RP-00-11

RP-00-22

Card
record

Card
record

Continuous
record

Continuous
record

X-R

X-R

Record

Main process

Processing of
raw materials

Control item checking method

- Low Correlation

- Medium Correlation

- High Correlation

Production
Monthly department
Monthly

Correlation with quality

assurance items
Monthly Engineering
department
Monthly

Flowchart
Responsible
party
Superv.
Superv.
Superv.
Superv.
Superv.
Superv.

Monthly Management
Monthly

Name of raw
materials

Pig Iron Area

Maintenance
Department

Pig Iron
Technology
Department

Pig Iron
Production
Department

Sinter Production
Department

Andrade Mine
Production
Department

Pig Iron Production

Management

Steel Area
Maintenance
Department

UGB

Steel Production
Department

Steel Production
Management

Client Technical
Support
Department

Technology and
Process Automation
Department
Utility
Department

Sabar Steel Mill

Production
Management

Supply
Department

Logistics and
Production Planning
Department

Programming,
Logistics and
Supply
Management

Maintenance
Engineering
Department

Maintenance, Utilities
and Environment
Engineering
Management

Metallurgy and
Quality Assurance
Department

Technical
Management

Finance
Support

Figure G.1: Plant organization chart.

Rolled Steel Area

Maintenance
Department

02 Rolled Steel
Production
Department

01 Rolled Steel
Production
Department

Rolled Steel
Production
Management

General Management
Joo Monlevade Steel Mill

Logistics, Utility
and Supply
Department

Department of
Production for
Civil Construction

Rod
Department

Human Resources
and Total Quality
Management

Picture G.1: Heads and staff of steelmaking shop.

From left to right: Vidigal, Joaquim, Andr Fernando, Ansio, Jlio, Marco Antnio.

*SOBREMETAL

AFIN

GRHQ

DEUT

DLPP
DTAP

*DMAC

*MAGNESITA

Supplier Development
Plan (P.D.F)

DSUM

*DGUS
GCIM
DMGQ

Suppliers

2 - Mixers
2 - Converters
1 - Pot Grate Furnace
1 - Continuous Ingot Casting
Machine
1 - Neutral gas
blowing-in station
6 - Traveler Crane
11 - Steel / Pig Iron Ladles
13 - Distributor

Equipment

XYZ

People

Ensure that the physical

plan for the production of
billets is followed within
the scheduled budget and
with the specified quality
characteristics for each
steel, and avoiding an
impact to the environment and
the health of the staff.

Mission

Production of
Billets

Business

Business

GGJM
GPGU
AFIN
GRHQ
DMGQ
GPLA

Roller 2

Roller 1

Production
scheduling

Clients

*Suppliers synthetically appraised (Vendor Rating).

Information

155X155 mm
9 a 12.20 m
Chemical analysis
according to Belgos
steel table

Billets

Products

Figure G.2: Definition of the BMU Business (Steel Production Department - DPAC).

Metallics Transportation
Metallic Cutting
Metalic Residue Treatment

Refractories
Maintenance Services
Corrective
Preventive
Predictive
Production Program
Automation System
Power
Fluids
Treated Water
Total Quality Consultancy
Safety Consultancy
HR Management
Instrument Gage Service
Financial Support
Assemb. VG. Distributors
Sulfur print

Molten pig iron

Scrap
Chemical analysis
Ferroalloys
Fluxing agents
Miscellaneous inputs

Inputs

TECHNICAL STANDARD
GGJM - GPAC - DPAC

Page: 01/02
Rev.: 01
Code: SEP280
Date: 11/21/01

CASTING OF XYZ AND ABC STEELS AT MLC

1 - Objetive
This standard sets the casting procedures to ensure the specified quality characteristics required during the
application of the following steels: XYZ and ABC

2 - Responsible
Supervisor or monitor

Activitities

Tolerance

What to do

Why?

1 - Empty ladle time

Standard SEP XYZ

Act according to the

standard

Stability of temperature
in the distributor

2 - Wait time at the tower

Maximum X minutes

Divide MLC

Get a free opening

3 - Open ladle drawer valve

Free
As O2

Cast normally
Mark in the running record
Act according to the
standard

Prevent internal defect

4 - Ladle plate valve

condition
5 - Closing of the drawer
valve during ladle
replacement
(Amepa = X%)

Amepa system on
automatic with an X%
sensitivity

Visually assess the passage

of slag to the distributor and
Prevent internal defect
register on the running
record

6 - Steel covering at the

distributor

Utilize proper thermal

insulation

Fully cover the steel

surface on the distributor

Prevent thermal losses

7 - Weight of steel on the

distributor

Y tons

Note on the running record

Prevent internal defect

8 - Steel remaining in
the distributor

X tons

< X ton, increase X meters

in the final billet length

Prevent internal defect

9 - Number of sequential
runs

Maximum = X runs or
Y minutes

Stop casting the sequence

Prevent excessive wearing

of the refractories

10 - Temperature

Standard SEP XYZ or

supervisory

11 - Centralization of the
submerged valve

Aligned to the mold

12 - Submerged valve
immersion depth
(15 cm)

X to Y cm

Standard SEP XYZ

Above tolerance record

on the running record
Work on the vertical/
transverse settings
Adjust distributor height

Ensure a free opening

Prevent surface defect

Prevent internal defect
Prevent wearing of the
submerse valve and internal
defect

Record of Alterations
What changed
Minimum billet length

Why?

Who

When

Alteration in the AP XX process

ABC

11/21/2001

CDC.: 004/04-08; 011/05-06-10

Prepared by:
ABC

Checkd by:
XYZ

Figure G.3: Product/Service Specifications.

Approved by:
KZY

Budget
Reduce 10% in relation to 2000
65%
Zero Infraction record

Operational Cash Flow

Complaints

Corporate Climate

Environment

Figure G.4: Goals of the Management of Long Products - 2001.

Budget

Goals

Operational Profit

Control Items

Environment
(Infraction Record)

Organizational Climate

Client Complaints

Operational Cash Flow

(Ebtida)

Operational Profits

Control Items for the

Management of Long Products

Figure G.5: Deployment of Control Items - 2001.

Number of Environmental Anomalies

Zero infractions recorded

Zero

Improve 10% in relation to the last survey

Organizational Climate
Number of Accidents

Reduce 10% in relation to 2000

External Market Complaints about Steel Cord

Reduce 10% in relation to 2000

Reduce 10% in relation to the budget

General managerial expenses

Client Complaints

Goal Plan: reduce 7% in relation to the budget

Cost of wire rod

Reduce 10% in relation to 2000

Goal Plan: increase 4% in relation to the budget

Production of wire rods

Storehouse Stock

Goal

Control Items for the

Monlevade Steel Mill

Reduce 7% in relation to the budget

Reduce 10% in relation to 2000
Reduce 10% in relation to the budget
Reduce 10% in relation to 2000
Reduce 10% in relation to 2000
Improve 10% in relation to the last survey
Zero

Cost of Wire Rods

Storehouse Stock

DGA

Client Complaints

External Market Complaints about Steel Cord

Organizational Climate

Number of Accidents

Figure G.6: Goals of the Joo Monlevade General Management - 2001.

Number of Environmental Abnormalities (Infractions recorded) Zero infractions recorded

Increase 4% in relation to the budget

Goals

Production of Wire Rods

Control Items

Cost of
Billet

Cost of Wire
Rod
- Cost of Ferroalloy
- Cost of Refractories
- Yield
- Cons. of Fluxing Agents
- Cons. of Power

Additional Cost
of Billet

Department
Head

Daily
Running

Casting Yield
Reblowing Rate

Running
Running
Sequence
Every 3 days

Mg O in Slag
Slag Splash
Sequential Runs
Electrode Consumption

Running

Running

Steel Mill Yield

Fe O in Slag

Frequency

Control Item

Supervisor / Operator

Steel Mill Department

Figure G.7: Deployment of Control Items from the Manager to the Operator.

Steel Mill
Management

General
Management

kg/t

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

0.18

Apr
Goal

June

Oct

Sep

Benchmark

Nov

July

Figure G.8: Monthly Follow-Up Chart.

Done

Aug

May

March

Feb

Jan

2000

0.20

Control Item: Bore Rate

Managerial Unit: DPAC - Steel Production Dept. - Monlevade
Responsible: Renato Borges de Moura

2001
Dec

1999

0.01
0.04
0.02
0.06
0.02
0.06
0.04

June
July
August
September
October
November
December

0.08

0.08

0.08

0.08

0.12

0.12

0.12

0.12

0.18

0.02

May

0.15

1999

0.10

April

0.15

0.15

0.11

March

0.15

2000

0.13

February

0.15

0.06

0.12

January

Goal

2001

Actual

Month

Measurement Unit: %
Benchmark: 0.01
Annual Goal: 0.10

Picture G.2: Visual Management Room - Monlevade Steel Mill.

Page: 01/01
Rev.: 07
Date: 03/18/2002

SYSTEM STANDARD
Usina de Monlevade
PREVENTIVE MAINTENANCE
PDCA
Phase
Round

People Involved/Responsibility
Management Record
Where When
Material
Coordenator Supervisor Operational

JO surveys
generated by
the system

STE 079

SAP
(W004)

JO inspection
programs

STE 079

SAP
(W007)

Print service
JO

STE 079

SAP
(W019)

Deliver Jos to
operationals

Prepare the
tools

Move to
the area

Request client
autorization

Clients

SEM 036
OSS

Authorize
the
inspection

DRI 254

Consignment
Map

DRI 254

Consignment
Map

OSS e
SEN 036

Job
Order

Inspect
equipment

10

Note down the

results of the
inspection

OSS

Job
Order

11

Communicate
with client (end
of inspection)

DRI 254

Consignment
Map

Deliver JO to
Supervisor

12

13

Create JO rec.
Maint. Prog. for
equipt. With
answer of bad
condition code

SET 079

14

Close JOs for

the coordinator

SET 045

15

Deliver JOs to
coordinator

16

17

Prepated by:

Check and take

any measures
necessary

SAP
(AC05A,
W010)

Job
Order

Wait for
Scheduled
Maintenance

Checked by:

Approved by:

Figure G.9: System Managerial Standard.

Desulfurized molten
pig iron
Transportation of the
hot-metal transfer car
Tilting of the
hot-metal transfer car
Slag
scraped
Thermal and chemical
sampling
Yes
LD?
Pig iron tumbled
into converter

No
Pig iron tumbled
into mixer
Transport the
ladle

Mixer covered

Combustion in the
mixers controlled
Control the stock and
moving of molten
pig iron
Figure G.10: Flowchart for the Molten Pig Iron Reception and Storage Process.

Flow

Internal and
surface defects

Internal defects

Surface defects

Surface defects

Billet cutting

Sulfur print

Transportation of the
billet to the yard

Casting

Internal and
surface defects

Internal defects

X Ton

Weight of steel
on distributor

Internal defects

Tapping of steel from

the distributor to
the molds

>X%

Free opening
rate

Y Rate

Internal defects

NA

When

Every run

Visual

Crack
pattern

X veins per
run
Ingotman

Ingotman

Ruler

Probe

Not applicable

SEP XXX

SEP XXX

Inspection
Report

SEP XXX

SEP XXX

SEP XXX

SEP XXX

MLC
Report

Supervisor of
MLC

Supervisor of
MLC

MLC
Report

Supervisor of
MLC

SEP XXX

Tachogenerator Supervisor of
MLC
Flux valves

SEP XXX

Supervisor of
MLC

Whole sequence

Every run

Every run

SEP XXX

Supervisor of
MLC

Larry car
scale
Immersion
pyrometer

SEP XXX

SEP XXX

What to do

Supervisor

Supervisor

Supervisor

Supervisor

Supervisor

Supervisor

Supervisor

Supervisor

Supervisor

Supervisor

Supervisor

Who to
look for

Corrective Action

Ladle area
repoirt

Supervisor at
ladle furnace

Record

How

Page: 01/01
Rev.: 12
Date: 03/12/1999

Not applicable

Immersion
pyrometer

Gage
instrument

Gauge
instrument

Ingotman

Automated
system

Ingotman

Every run

Every run

Ingotman

Supervisor

X per run

Every run

Every run

Every run

Ingotman

Ingotman

Ingotman

Ingotman

Person
Measurement
Responsible (hour/freq.)

Who

Check Method

Figure G.11: Process Technical Standard.

Visual standard

Intial and final

billets

Standard

Level
variation

Flow powder

X m/min

Speed
Spray
program

Temperature

Tapping of steel from

the ladle to the
distribuitor

Temperature

X Rate

Internal and
surface defects

Placement of ladles in
the MLC tower

Standard
value

Value
ensured

Control
Parameter

Control
Level

Quality
characteristics

Quality
Ensured

Process Name

Process

GGJM / GPAC / DPAC

PROCESS TECHNICAL STANDARD

Process: Continuous Casting

Desulfurized molten
pig iron
Transportation of the
hot-metal transfer car
Tilting of the
hot-metal transfer car
Slag
scraped

CRITICAL
TASK

Thermal and chemical

sampling
Yes
LD?
Pig iron tumbled
into converter

No
Pig iron tumbled
into mixer
Transport the
ladle

Mixer covered

Combustion in the
mixers controlled
Control the stock and
moving of molten
pig iron
Figure G.12: Critical Process Flowchart.

Page.: 01/01
Rev.: 04
Code: SFT089
Date: 09/17/1999

STANDARD OPERATIONAL
PROCEDURE

GGJM - GPAC - DPAC

CHANGE THE METAL NOTCH WITH A DRILL

Responsibles: LD Monitor, Furnaceman and Maintenance Mechanic
1 - Furnace stop

1 - Raise the Gradall to the plataform by means of the traveler crane.

2 - Clean furnace rim and metal notch flange with Gradall.
3 - Clean the notch internally using oxygen.
4 - Lower the Gradall using the traveler.

2 - Notch drilling

1 - Raise the drill to the platform by means of the traveler crane.

2 - Tilt the furnace to the sampling side and position at the proper angle.
3 - Center the drill facing the furnace.
4 - Couple the drill to the notch flange.
5 - Drill the metal notch.
6 - Uncouple the drill.
7 - Transport the drill to designated place.

3 - Change the metal notch

flange

1 - Assemble the scaffold facing the furnace.

2 - Cut the screws fixing the flange and remove it.
3 - Mount the clevis onto the proper flanged pipes and fix it.
4 - Weld the flanged pipe with the clevis to the flange to be mounted.
5 - Screw up the flange with the clevis to the furnace.
6 - Disassemble the scaffold.

4 - Filling the notch with

paste

1 - Tilt the furnace to the tapping side and position it at the desired angle.
2 - Fill the projection machine with enough of the desired concrete.
3 - Position the projection lance facing the furnace.
4 - Regulate the projection machine with pressure of x kgf/cm2.
5 - Project the concrete until the notch is filled up.
6 - Pull the hoses back and store them.
7 - Clean the area.
8 - After finishing the projection wait X min and release the furnace for loading.

4 - Safety, health and

the environment

1 - PPE must be worn. Boots with steel tips, leggins, safety goggles, helmet,
scrape glove, ear mufflers.
2 - Residues generated should be collected as instructed onto collecting containers.
3 - Do not walk and/or stay under suspended loads.

CDC.: 010 - 03/14

Prepared by:

Checked by:

Approved by:

Jos Geraldo Silva

Geraldo Jos dos Santos

Marco Antnio Macedo Bosco

Figure G.13: Standard Operational Procedure.

Picture G.3: Training and Critical standards - DPAC.

From left to right: Gilvnio, Edmar, Ronildo, Jlio, Maurilo, Wilson, Csar.

Picture G.4: Motivational Lectures - DPAC.

Renato
Renato
Helvio
Helvio
Jlio

Distributor preparation practice

Coupling practice

Metallic load preparation

Converter heating procedure

Ladle furnace wire injection procedure

J F M A M J J A S O N D

Figure G.14: Standard Auditing and Training (DPAC).

Renato

Jlio

Steel treatment in ladle

Steel casting in protected jet

Helvio

Tapping operation

TREIN.
Helvio

AUDIT.

Converter blowing operation

STANDARD

IMPROVE

MAINTAIN

Training and
Execution

Manager to
operator

Annual Action Plan (Matrix)

Control
Items

Standards

Execution of
the plan

5S Program

A S
C D

Norm
Auditing

Follow-Up
Charts

Visual
Management

Anomaly
Analysis

Project
Auditing

Critical Analysis
Meeting

A P
C D

CEDAC - Participation
of operators in the
projects

Figure G.15: Management Model - PDCA/SDCA.

SHAKEDOWN

Three Generation
Report

Projects
Goals

0.00

Average 00

98

197

295

394

492

590

689

787

886

984

Feb

Scrap

465

Aug

July

June

May

Apr

Oct

Nov

Reclassification

77.5

Dec

Sep

7.75

15.5

23.25

31

38,75

46,5

54,25

62

69,75

77,5

44

88

VGDIST

56.6
26
RM

IN

40,1

A P
C D

AL

20,5

CU

25.4

IB

16

CE

PIG

Reclassification

10.1

4.8
AO

1.1
EV

3.6 3.5 3.2 2.7 1.4 1.3 1.3 0.4 0.2 0.2

Deviation

AG

26.2

48.647.9
39.631.2 27
24 22.5 21.5
16.616.1 12 10.810.3
9.9

85.5

A P
C D

TI

Figure G.16: Identification and Prioritizing of Problems at DPAC.

Deviation

441,2

Bad Quality Index

132

176

220

264

308

652

AE

440

EP

IN

396

VGDIST

1.00

RO

RO

STL

1.1

60.3

TI

46.5

96.2

TU

93

A P
C D

PA

139.5

153,2

NB

186

AG

2.00

Average 01

A P
C D

DTA

232.5

AL

2,53

AQ

Tons/month
Tons/month
Tonelada/ms

A P
C D

CE

279

JUN

2.7

VA

325.5

OC

3.00

AO

Scrap

EXT

Average 99

Tons/Mmnth

VARVEL

372

PS

465

VIN

418.5

SG

Bad Quality Index

DTB

2,8

GF

4.00

MR

March

Jan

Suggestions: 174
Ideas implemented: 56
Participants: 69

Raw material

Inadequate sand quality

Dropping of slag in the

drawer valve before
tapping

Excessive time between

sand insertion and
tapping

Machine

Deviation
of reclassification
due to opening

Figure G.17: Plan for Attacking Prioritized Problems.

Cost of improvements: R$ 12,000

Annual Gain: R$ 46,000

Excessive hold time

of the ladle in the tower

Ladle stays too long

in Heater

Insufficient amount
of sand in the valve

Burst of metallic
body of the porous plug

Method

Cause and Effect Diagram

During the deployment of GPAC policies the shakedown done for the quality dimension showed that one of the
characteristics affecting billet deviation and reclassification was the opening of the drawer valve of the ladle with oxygen.
So the CEDAC (cause-and-effect diagram with addition of cards) project was launched.

Choice of Theme (justification):

Reduction of Deviation and Reclassification by

Opening - DPAC

50

100

150

Fev

Mar

Abr

Mai

Jun

Ago

Month

Jul

Before

Set

After

Out Nov

Dez

Actual
Goal

Conclusions:
- The actions implemented so far have reduced by 40%
the amount of deviation and reclassification of billets by
opening with oxygen, thus reaching the result expected.
- The high level of participation of the staff is acknowledge.
174 cards for possible cause and possible solution were
presented.

Proposed actions:
- Review ladle cycle standard
- Develop a more resilient metallic carcass
- Ensure that the duct is clean
- Have a meeting with supplier and improve quality of sand
used
- Create a standard for laddle heating time
- Increase amount of sand according to the lifespan of
the ladle
- Avoid anticipating runs for mlc tower

200

250

300

350

Results:

Leader: Fernando Marques Moraes

Start: 08/21/00
End: 11/31/00

Vladimir

Vladimir

Vladimir
Vladimir
Renato
Vladimir
Vidigal
Vladimir
Vidigal
Vladimir
Vidigal

Determine procedures for finding the points of potential delay

in Scheduled Maintenances.

Prepare blocks for potential delays in Scheduled

Maintenances.

Take over the coordination of the shifts operation staff.

Implement assessment meeting with all coordinators during

maintenance.

Attribute scores to VENDOR RATING of the Steel Mill and the

companies in the P.P.s assessment meeting.

Assess 5S, efficiency of consignation, release of consignation

and general safety aspects.

Prepare Abnormality Analysis for possible delays.

Status

Figure G.18: UGB - DPAC Action Plan.

Delayed

Vladimir
Vidigal

Include coordinator procedure in the scheduled maintenance

preparation meeting

Concluded

Who

To do

Optimization of Schedule Stops

J

S O N D

In progress and on schedule

When (2001)
F M A M J J A

12
6

10

20

30

40

50

60

70

80

90

100

Project for improving the refractories

of the distributor
Resp.: Renato Deadline: 12/31/01

4 Distributor Refractory Restriction

defect and FP steel car

Review inspection and maintenance plans.
Resp.: Frank Deadline: 11/30/01

3 Car distributors electromechanical

Review Castability project

Resp.: Jlio Maria Deadline: 12/31/01

2 Castability

Negotiate with programming

the minimum number of sequential runs.
Resp.: Vidigal Deadline: 12/31/01

Propositions

Date: 11/12/2001

1 Schedule

Figure G.19: Three-Generation Report.

10

20

30

40

50

54

Program

60

Castability

70

Pareto for Causes - October

Eletromec.
Defect

80

Done - 8.2 runs/sequence

Problem - 0.3 runs/sequence

Distributor Ref.
Restriction

Goal - 8.5 runs/sequence

Done/Result

Obstruction

Planned

Control Item: Number of Sequential Runs

Problem: Result from October 2001 below goal
Managerial Unit: GPAC
Responsible: Wllerson Jlio Ribeiro

THREE-GENERATION REPORT - MANAGERIAL

Others

Control
Items

Steel Cord 2nd Blowing

Automation Project
Convert. Vessel and
Ladle Project

Free Opening Project

Ladle Tower Project

Eletromag. Agitator Project

(M-EMS)

Billet Dresser Project

Billet Scrap Reduction

Project
Safety Annual
Project - GPAC

Steel Mill 5S Project

Pig Iron - Billet Chain

Production Minimum Cost Project

Specific Consumption Project

Billet Production Project

Improve
10% in rel.
to last survey

Organizational
climate

XXX kg/t
Specific
Consumption

JF, Vitria and

Piracicaba
Budg. Average
Pig-Iron Billet
Chain
Min. Cost

According to
Budget

Billet
Cost

According to
Budget

Billet
Production

Marco Antnio/Roberto
Roberto
Roberto
Augusto/Roberto

Zero accidents including

service providers
100% schedule fulfilled
100% schedule fulfilled
Free opening index > 90%

Caption:

Augusto/Roberto

Project may affect the goal

Project affects the goal

Project strongly affects the goal

100% schedule fulfilled

Marco Antnio

Marco Antnio

Marco Antnio

Reduce index to 0.50%

100% Steel Cord with

automatic blowing
100% Steel Cord with
automatic blowing

Marco Antnio/Roberto

Marco Antnio

Marco Antnio

Wllerson

Reponsible

MLC Standard

Increase billet production

capacity
Enable for specific
consumption
JF, Vitria and Piracicaba
Budget Average

Project Goal

Figure G.20: Annual Action Plan of Steel Production Management.

Bad Quality
Index

Projects

Reduce 5%
in relation to
2001
Reach
200ppm last
Quarter
Drilling
Index

Goals
Zero
Number of
accidents

General Management of Joo Monlevade Steel Mill

Zer
(infraction
record)
# of Environmental
anomalies

Frame G.1: Criteria for Abnormality Analysis.

Accidental stops above 30 minutes

Line scrap
More than 5 rollers deviated
Any job or equipment accident (or quasi accident) that takes place

Rolling

Casting machine stoppage above 30 min

Quasi accident and actual accident with staff or equipment
Any billet scrap
Opening with oxygen
Drilling

Steel Mill

Run delays above 20 minutes

Load stops above 20 minutes
Percentage of S in pig iron > 0.010%
Any job accident or accident with equipment that takes place

Blast Furnace

GGJM - GPAC - DPAC

Shift
1

Code:

ABNORMALITY REPORT
Crew
3

Date:
4

01/31/2002
Participants
Adalton, Ronaldo, Mrcio Miranda, Antnio, Altair, Joo Bosco and Lucas Motta.

Abnormality
Stop of the V6 at the junction of 1015L with P926A due to obstruction after casting ~3m.

Operational Procedures
SLT 001

Was the Operational Procedure followed?

YES

NO

Note
-

Ladle No. 3-49 runs.

Deficiency of heating of valve V6.
There was an interruption during translation of car II for tapping of V3.
The ladle was opened with oxygen (by inserting the tube 2X)
Union time was 11 minutes.
Placement of the long tube without the distributor being 100% full.
Non observance of heating deficiency in V6 during distributor heating.
Abrupt fall of level and position of the drawer valve without a successful intervention by the ingotman.
Due to the freezing of the parameters this item could not help us in analyzing the abnormality.
- There is no obstruction tendency alarm in the PCIM.
- Reduction was actuated but without success.

Brainstorming
Non observance of the deficiency in
heating of valve V6
Placement of long tube without the
distributor being 100% full

Opening with oxygen

Deficiency in
V6 heating
Obstruction of
vein 6 at the junction

Coupling time
of 11 minutes.
Refractory breakage in vein 6
valve
Mention the abnormality: Stop in V6 at the junction of 1015L with P926A due to obstruction after casting ~3m.
Why did it happen? Non observance in the deficiency of valve V6 heating.
Why did it happen? Standard SLT001 (inspection every 15 minutes after air opening) was not followed.
Action Plan/Standardization
What?
Recycle ingotmen in standard SLT001 - activity number 3
(distributor heating)
Recycle ingotmen in standard SLT001 - activity number 10
(MLC startup)

Who?

When?

Adalton

01/31/2002 - OK!

Adalton

01/31/2002 - OK!

Final Assessment:
A general maintenance of the preheating station of the distributors is scheduled, which will contribute for
solving the heating problem.

Figure G.21: Example of Abnormality Analysis report.