RENEWABLE ENERGY CORPORATION

LEAN AT REC
Learning's Lean implementation REC Scancell
Jonas Wallmander onsdag, 15. juni 2011

Jonas Wallmander

Development engineer, project leader ABB Robotics Process Engineer REC Scanmodule Process Engineer Leader REC Scanmodule Production Manager REC Scanmodule RBS & Performance Manager REC Scancell Performance, Process & Technology Manager REC Scancell

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Outline
Basic lean REC Business System (RBS) Scancell RBS implementation 2008 Q3 2010 Scancell RBS implementation Q4 2010 2011 Results & Conclusions

2011 REC All rights reserved. Confidential

Lean basic

It is the customer that sets the price

Earnings = Price - Cost

As a production unit the only thing that you can affect is the cost And do it thru shortening lead time, eliminate waste, improve safety, morale and get in control of your quality and performance indicators
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REC Business System (RBS) In brief

RIGHT HERE AT REC

REC Silicon employees working at the plant in Moses Lake WA, USA

The House

CUSTOMER SATISFACTION BEST SAFETY - BEST QUALITY SHORTEST LEAD TIME - LOWEST COST PERFECT FLOW WASTE REDUCTION 0 DEFECTS

CONTINUOUS IMPROVEMENT & SYSTEMATIC PROBLEMSOLVING

REC LEADERSHIP
OPTIMIZED MANNING

STABILITY & LEVELING CONTINUOUS STABLE & RELIABLE PROCESSES (4M) IMPROVEMENTS
ACCURATE FACTS, FIGURES & VISUAL MANAGEMENT DISCIPLINE 5S

TECH. STEP CHANGE

INDUSTRIALIZATION

TRAINING

TECHNOLOGY DEVELOPMENT & VALIDATION

CRITICAL COMPETENCE ORGANIZATIONAL STRUCTURE ROLES AND RESPONSIBILITIES

REALIZE THE POTENTIAL OF PRESENT TECHNOLOGY

UNDERSTAND PRESENT TECHNOLOGY

HSE & QUALITY RPS PRINCIPLES R

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Principles of the house

Work from the ground and up

CUSTOMER SATISFACTION BEST SAFETY - BEST QUALITY SHORTEST LEAD TIME - LOWEST COST

PERFECT FLOW

Start with common values and

WASTE REDUCTION

0 DEFECTS

principles and then use the tools

REC LEADERSHIP OPTIMIZED MANNING

CONTINUOUS IMPROVEMENT & SYSTEMATIC PROBLEMSOLVING LEVELING STABLE & RELIABLE PROCESSES (4M)
INDUSTRIALIZATION

TECH. STEP CHANGE

The result appears in the internally

TRAINING

ACCURATE FACTS, FIGURES & VISUAL MANAGEMENT DISCIPLINE 5S

TECHNOLOGY DEVELOPMENT & VALIDATION REALIZE THE POTENTIAL OF PRESENT TECHNOLOGY

in the ceiling and externally on the rooftop

CRITICAL COMPETENCE ORGANIZATIONAL STRUCTURE ROLES AND RESPONSIBILITIES

UNDERSTAND PRESENT TECHNOLOGY

HSE & QUALITY RPS PRINCIPLES C

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Our Principles help developing and implementing RPS They are the linchpin of the system
1. UNDERSTAND YOUR BUSINESSCASE
Business Case SPL Current Condition Action plan Measure Target

2. ORGANIZE YOUR PEOPLE

Problem

Team

3. DESIGN AND IMPROVE YOUR SYSTEM USE OUR RULES IN USE (RiU)
1 2 3 Standardize all activities Customer-supplier connection Optimize flow Improvements & Problem solving
4 Customer Supplier Developing the System Basic design of the system Standard method & execution

1 2

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RBS Implementation
REC Scancell 2008 Q3 2010

RIGHT HERE AT REC

REC Wafer production plant, Herya, Norway

2008 - 2010

Extensive Lean program started

External consultants into Scancell

JMAC BCG

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Organization

External organization to implement RBS

Scancell organization

RBS leader Operators Engineers Consultants

RBS org.

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Everything needs to be followed up else it will faill

Improvement

Follow up is the key to holding a standard

Without Holding standard

Time

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Follow up and train

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To sustain the improvement even the manager has to be followed up

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Examples from REC ScanCell in Narvik

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Six sigma implementation in production

Control

Input

Process

Output

1. SIPOC
PROCESS MAP Target OK Target INPUT OUTPUT CONTROL CONDITIION

2. Flow Chart

Condition 3. Focus Diagram (P-diagram)

R
Avg Range

OCAP
Process

PROCUCT PROCESS CONTROL PLAN Units Meas Sys Sampling Freq Sheet R ohm 4 point 5 1/hr Reflectivity Surface % Optical 100% 100%

SPC M

4. Process Map
Failure Mode Effect Analysis Units Meas Sys Sampling ohm 4 point 5 % Optical 100% 100%

5. Regulation System

6. Control Plan

O
Freq 1/hr

Sheet R Reflectivity Surface

P I i1 12 c1 C

c2 19 c3

7. FMEA

8. Elimination Tree

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Visual management and meeting structure

Critical Process Management (CPM)

Meeting
Stabilization process engineer meets with equipment engineer and operator to report process and equipment errors Purpose is to solve the problem at the source and create communication in-between operator and engineers

Production meeting
Escalation of problems that not are solved at the CPM meetings High management attention All KPIs reported both leading and lagging ex. Number of Job observation, sick leave, environmental pollution,..

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Training to understand the purpose of all changes

Module 1 RPS introduction and Production Simulator

Standardized work Customer supplier relations Flow Continuous improvement

Module 2 SPS Systematic Problem Solving

Systematic Problem Solving

Define the Problem
Report Date Completion Date Department/Process Customer Affected

Log No :

Action Plan
4. Identified Possible Solutions / Corrective Actions What/How Who When
Tick Selected Solutions

Systematic way to solve problems Finding the root cause of problems Working in cross-functional teams

Originator Name Team Leader Team Member

Where

WHAT HAS HAPPENED?

BUSINESS CASE Is the topic relevant to the organizations objectives due to Safety, Quality, Delivery, Cost?

Define

What is the standard, requirement or baseline?

WHAT IS THE DEFECT/NON-CONFORMANCE? (Define as a metric):

Improve
Ensure Effectiveness of Corrective Actions
5. Follow up on Action Plan What (Action Items) Status
25% 75% 50%
100%

1. Problem Statement

PROBLEM STATEMENT (What is the problem? Where? When did it happened? How often? Sketch of the problem):

Who

When

Where

25% 75%

50%
100%

25% 75%

50%
100%

Control

WHAT GOALS/TARGETS SHOULD BE ACHIEVED:

Check list :

( Please Tick

Has the selected solution implemented and achieved the predicted performance? Is the identified root cause is applicable to more than one part/process? Has the existing standard work updated? SOP/WI Q-Standard Flow Chart/Drawing Maintenace list

Measure & Analyze

Verify Baseline - 4M
2: Quick analysis
1. Is the Operator trained/certified in operating the process?

Analyze / Investigate Root Cause

Yes No
3. Root Cause Analysis (See backside)

Root causes:

Have all process related staff been trained to the standard?

2. Have the standarized work been followed correctly? 3. Are the machine/equipment parameters set correctly?

Cost Avoidance
4. Have the correct tools been used? 5. Are periodic maintenance performed according to plan? 6. Are incoming material without deviation? Use hand need require to topress apply to used nylon glove Ergonomic

Cost Saving

Approval by:

Department Manager
require to hand pain congested

Date

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RBS Implementation
REC Scancell Q4 2010 2011

RIGHT HERE AT REC

REC Silicon production plant, Moses Lake WA, USA

Q4 2010 - 2011

PRESUMPTION

Very small recourses Highly competitive market (Chinese companies have cut production cost furiously latest years) High pressure on getting cost down

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Value Analysis of the impact of different KPIs

Find the KPIs that are driving cost down

Waste, Fixed cost Yield Cycle time Efficiency Availability

Have a two weeks workshop brainstorming and make pre-studies to understand

what projects to run

Create a project roadmap for the coming year and put focus on getting the high

priority projects implemented.

Run all projects according to RBS prinsiples

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How to get people to walk the extra mile

Create the team that

will make the change

Management team and some extra functions

Create the Burning

Platform
Business case for the site Point out the road where to go Follow up frequently

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Results & Conclusions

RIGHT HERE IN ALICANTE

REC panels installed in a power plant in Alicante, Spain. System size of 8 MW, powering 4 896 households

Result
30% 25% 20% 15% 10% 5% 0% 2008
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Gap to goal Cost reduction

2009

2010

Q4 2010-2011

Learning's
Lean takes time and no1 is the right leaders with the right mindset

To get speed in implementation you need a common understanding in the entire

organization

Competence is often the biggest hinder in an Lean implementation

Time for training is often underestimated

By having an external Lean team you get the speed up but there are risk of low

ownership in the organization.

Dont do it as a leader if you are not willing to go the entire way with follow up and

being the leading example

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