24341441 six-sigma

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D efine M easure A nalyze I mprove C ontrol Operational Excellence By Lee Olson Presentation to INFORMS Six Sigma Six Sigma: DMAIC; Y=f(x) Is it a Goal, a Measure, a Process, a Tool or an expletive deleted?

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Page 1: 24341441 six-sigma

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Operational

Excellence

By Lee Olson

Presentation to INFORMS

Six Sigma

Six Sigma: DMAIC; Y=f(x)

Is it a Goal, a Measure, a Process,

a Tool or an expletive deleted?

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Operational Excellence Training

Objectives

Understand the Basics of the Six Sigma Program

Understand How Six Sigma Relates to Lean, TOC, TQM

(Theory Of Constraints; Total Quality Management)

Ability to Define a Strategy and Roadmap for Success

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Operational Excellence Training

Define

Is it a Goal, a Measure, a Process, a Tool or an expletive

deleted?

Yes

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Operational Excellence Training

Define

Six Sigma

Is a management methodology

• Customer focused

• Data driven decisions

• Breakthrough performance gains

• Validated bottom line results

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Customer Focused

Our Performance Compared to Competitors

Imp

ort

an

ce

to

Cu

sto

me

rs

We’re Better They’re Better

High

Moderate-to-’Low’

• Price• Complaints

• OTD• Quality

• Training

• Complete

• Shared Goals

Top 5 Action Items

Driver Action Description Status Status Description Owner

Original Due

Date

Current

Due Date

Late Supplier Deliveries Monthly reporting to suppliers on delivery &

quality metrics.

On

track

Report Cards Implemented. Adam 5/21 5/21

Late Supplier Deliveries Arrange face to face meetings with top

offenders.

On

track

Meetings Complete with top 10

Suppliers.

Beth 6/15 6/15

Late Supplier Deliveries Review and approve supplier's corrective action

plan.

Caution Corrective Action Plan in Place for 2

major Suppliers

Carlos 7/15 9/15

xyz Cell Always Late Kaizen Event to focus on improving throughput

by 40% and improve labor efficiency by 35%

On

track

Event held 5/1. 25% throughput

improvement in May. Labor Efficiency

Increase of 30%

Doreen 5/21 5/21

Unrealistic Promise Date Focus on custom products to provide realistic

ATP based on inventory and leadtime of

components.

Problem Continued lack of progress. Re-

structured and focused team.

Developing detailed plan.

Earnest 6/15 8/15

ON TIME DELIVERY (sample)The percentage of sales order line items that ship complete on or before the original customer promise date, for

all line items shipped in the month.

On-Time Delivery

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Target

Pareto of Drivers

0%

25%

50%

75%

100%

Late

Supplie

r

Deliv

eries

xyz C

ell

Alw

ays

Late

Unre

alis

tic

Pro

mis

e

Date

Ord

ers

on

Cre

dit H

old

Low

Yie

ld

on p

art

abc

Engin

eering

Change

Ord

ers

Reason

% Im

pact

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Operational Excellence Training

Data Driven Decisions

Why should we test or inspect Y, if we know this relationship?

• Y

• Dependent

• Output

• Effect

• Symptom

• Monitor

• Response

• X1 . . . XN

• Independent

• Input-Process

• Cause

• Problem

• Control

• Factor

To get results, should we focus our behavior on the Y or X ?

f (X)Y=

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Operational Excellence Training

2 308,5373 66,8074 6,2105 2336 3.4

PPM

Breakthrough performance gains

Sigma is a statistical unit of measure which reflects process capability.

The sigma scale of measure is perfectly correlated to such

characteristics as defects-per-unit, parts-per million defective, and

the probability of a failure/error.

(Distribution Shifted ± 1.5)

Process

Capability

Defects per Million

Opportunities

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Operational Excellence Training

Validated bottom line results

Price

Incr

ease

Mate

rial C

osts

Volu

me In

c. w

ith L

evera

ge

Manufa

cturi

ng

SG&A

Volu

me In

c. N

o Leve

rage

Taxes

Labor

Work

ing C

apital

Genera

l-5% P

rice

Reduct

ion

Imp

ac

t o

n B

ott

om

Lin

e

Assuming a 10% change in the factor

Factors

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Operational Excellence Training

Define

Methodology

Define

Measure

Analyze

Improve

Control

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Operational Excellence Training

Roadmap Example

Next Project DefineCustomers, Value, Problem Statement

Scope, Timeline, Team

Primary/Secondary & OpEx Metrics

Current Value Stream Map

Voice Of Customer (QFD)Measure

Assess specification / Demand

Measurement Capability (Gage R&R)

Correct the measurement system

Process map, Spaghetti, Time obs.

Measure OVs & IVs / Queues

Analyze (and fix the obvious)Root Cause (Pareto, C&E, brainstorm)

Find all KPOVs & KPIVs

FMEA, DOE, critical Xs, VA/NVA

Graphical Analysis, ANOVA

Future Value Stream Map

ImproveOptimize KPOVs & test the KPIVs

Redesign process, set pacemaker

5S, Cell design, MRS

Visual controls

Value Stream Plan

ControlDocument process (WIs, Std Work)

Mistake proof, TT sheet, CI List

Analyze change in metrics

Value Stream Review

Prepare final report

Validate

Project $

Validate

Project $

Validate

Project $

Validate

Project $

Celebrate

Project $

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• Develop a focused Problem Statement and Objective

• Develop a Process Map and/or FMEA

• Develop a Current State Map

• Identify the response variable(s) and how to measure them

• Analyze measurement system capability

• Assess the specification (Is one in place? Is it the right one?)

Practical

Problem

Problem

Definition

• Characterize the response, look at the raw data

• Abnormal? Other Clues? Mean or Variance problem?

• Time Observation • Spaghetti Diagram • Takt Time

• Future State Maps • Percent Loading

• Standard Work Combination

• Use Graphical Analysis, Multi-Vari, ANOVA and basic

statistical tools to identify the likely families of variability

Problem

Solution

• Identify the likely X’s

• 5S • Set Up Time Reduction (SMED)

• Material Replenishment Systems

• Level Loading / Line Leveling

• Cell Design • Visual Controls

• Use Design of Experiments to find the critical few X’s

• Move the distribution; Shrink the spread; Confirm the results

Problem

Control

• Mistake Proof the process (Poka-Yoke)

• Tolerance the process

• Measure the final capability

• Place appropriate process controls on

the critical X’s

• Document the effort and results

• Standard Work • TPM

Identify

Problem

• Strategic Link to Business Plan defined in Project Selection Process

• Defined Business Impact with Op Ex Champion support

• Structured Brainstorming at all organizational levels

• Cause and Effect Diagrams identifying critical factors

• Primary and Secondary Metrics defined and charted

• Multi-Level Pareto Charts to confirm project focus

What do you want to know?

How do you want to see what it is that you needto know?

What type of tool will generate what it is that youneed to see?

What type of data is required of the selected tool?

Where can you get the required type of data?

Problem Solving

Plan Execute

Execute PlanCrane Co. Op. Ex. Methodology Originated by MBBs; D. Braasch, J. Davis, R. Duggins, J. O’Callaghan, R. Underwood, I. Wilson

Op

era

tio

nal E

xc

ellen

ce M

eth

od

olo

gy

Based in part on Six Sigma Methodology developed by GE Medical Systems and Six Sigma Academy, Inc.

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Operational Excellence Training

DefineKey Items

Customers, Value, Problem Statement

Scope, Timeline, Team

Primary/Secondary & OpEx Metrics

Current Value Stream Map

Voice Of Customer (QFD)

(Quality Function Deployment)

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Operational Excellence Training

Project SelectionImpact

Business Impact

• Revenue Growth

• Cost Reduction

• Capital Reduction

• Key Business Objectives

• On Time Delivery

• Lead Time

• Quality

• Customer Satisfaction

Impact on Operational Excellence Metrics

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Operational Excellence Training

Evaluate and Rank SuggestionsEffort and Risk

Effort required

• People Resources

• Capital Resources

• Duration of Project

Probability of success

• Technical Risk

• Data available

• Knowledge of process

• Management Risk

• Aligned with objectives

• Support by value stream manager

Impact vs. Risk vs. Effort

• Assess ROI (Return On Investment)

• Assign priorities to projects

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Operational Excellence Training

Evaluate and Rank Suggestions

Example tool to rank projects

0106-01 Project Rating.xls

#

Mfg

(M)

or

Admin

(A) Project Description

Re

ve

nu

e G

row

th

Co

st

Re

du

cti

on

Ca

pit

al R

ed

uc

tio

n

Ke

y B

us

ine

ss

Ob

jec

tiv

e

On

Tim

e D

eliv

ery

Le

ad

Tim

e

Qu

ality

Cu

sto

me

r

Sa

tis

fac

tio

n

To

tal

Imp

act

Pe

op

le R

es

ou

rce

s

Ca

pit

al R

es

ou

rce

s

Du

rati

on

of

Pro

jec

t

To

tal

Eff

ort

Te

ch

nic

al R

isk

Ma

na

ge

me

nt

Ris

k

To

tal

Ris

k

Variable weightings 20% 15% 10% 15% 20% 5% 5% 10% 100% 50% 20% 30% 100% 40% 60% 100%

1 A Customer Billing Errors 0 2 0 4 4 2 2 5 2.4 2 1 3 2.1 1 4 2.8

2 MWarranty

scrap warranty vs sales0 2 0 1 1 0 3 3 1.1 4 4 5 4.3 4 2 2.8

3 A Vendor Delivery Performance 0 2 2 2 5 4 3 0 2.2 1 1 3 1.6 1 2 1.6

4 M On Time Shipping Performance 2 1 2 4 5 0 1 5 2.9 4 1 2 2.8 1 3 2.2

5 A

Hiring and Retention

20% - 24% Turnover 0 3 0 2 1 0 3 2 1.3 3 2 4 3.1 1 4 2.8

6 A

New Product Development Cycle Time

3 4 2 5 3 3 4 5 3.6 5 3 5 4.6 5 5 5.0

7 MManufacturing Maintenance

Tooling Maintenance0 3 0 1 2 3 1 0 1.2 1 4 1 1.6 1 1 1.0

8 A Day Sales Outstanding (DSO) 0 0 4 2 0 0 0 0 0.7 1 0 2 1.1 1 1 1.0

9 M FTY of 65% on product 123 4 4 2 5 4 4 5 5 4.1 2 1 1 1.5 2 1 1.4

RiskProject Information Impact Effort

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Example chart to rank projects 0106-01 Project Rating.xls

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Operational Excellence Training

Measure

Establish measurement capability

• Validate the database (transactional)

• Gage R&R (Repeatability & Reproducibility)

• Calibration is not enough

• Many (or most) measurement systems are not capable

• How good is the data you are using to make decisions?

Fix the measurement system

• Enables calculation of process capability

• Enables calculation of alpha & beta risks

• This step is often skipped

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Analyze(and fix the obvious)

Find all KPOVs & KPIVs

(Key Process Output Variables; Key Process Input Variables)

FMEA, DOE, critical Xs, VA/NVA

(Failure Modes Effects Analysis; Design Of Experiment)

Graphical Analysis, ANOVA

(Analysis Of Variance)

Future Value Stream Map

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Operational Excellence Training

Improve

Optimize KPOVs & test the KPIVs

(Key Process Output Variables; Key Process Input Variables)

Redesign process, set pacemaker

5S, Cell design, MRS

(Material Replenishment System)

Visual controls

Value Stream Plan

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Operational Excellence Training

Control

Management of Change

• Owned by project champion and value stream manager

• Critical to long term success of project

• Physical and cultural changes

Measurement controls

• On-going metrics

Visual Controls

• Enable workers to self-manage the process

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Operational Excellence Training

Basic ImplementationRoadmap

Understand and Define

Entire Value Streams

Deploy Key Business Objectives- Measure and target (metrics)

- Align and involve all employees

- Develop and motivate

Define, Measure, Analyze, ImproveIdentify root causes, prioritize, eliminate waste,

make things flow and pulled by customers

Control-Sustain Improvement

-Drive Towards Perfection

Identify Customer Requirements

Vision (Strategic Business Plan)

Continuous Improvement (DMAIC)

Identify Customer Requirements

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Operational Excellence Training

Hoshin

Key: 4 Impact Owner m SupportType in --> 4 l m

1.2 6 4 4 4 4 m

1.1 5 4 4 4 4 4 m m m m m

3.2 4 4 4 m

3.1 3 4 4 4 m

2.2 2 4 4 4 4 4 4 4 4 m

2.1 1 4 4 4 4 4 4 4 m m m m m m

3.0

2.0

1.0

1

2

3

4

5

6

7

8

Resource

Imp

lem

en

t le

an

co

nce

pts

in

to

p 3

vo

lum

e lin

es

es

tab

lis

h p

are

to o

f d

rive

rs fo

r O

TD

IT Opera

tions

Qualit

y

Engin

eering

Main

tenance

Mark

eting

Leaders

have

abili

ty t

o m

ap a

valu

e s

tream

Me

tric

s m

od

ule

in

all a

pp

rop

ria

te tra

inin

g s

eq

ue

nce

s

Tra

inin

g p

roje

cts

de

mo

ns

tra

te flo

wd

ow

n o

f m

etics

to

op

era

tio

na

l le

vel

Deve

lop c

ulture

of te

am

s

Imp

rove

Cu

sto

me

r Fo

cu

s

Ed

uc

ate

/Ge

t E

ve

ryo

ne

In

vo

lve

d

Imp

rove

th

e M

etr

ics

Tra

inin

g

Establish tracking of OTD in every cell

Improve On Time Delivery to 98%

Train workers in how our products are used by our major customers

Co

mp

lete

1 L

ea

de

rsh

ip L

GB

tra

inin

g c

ou

rse

Tra

ine

es

pa

rtic

ipa

te in

cu

sto

me

r s

urv

ey

Co

mp

lete

3 fu

nctio

na

l L

GB

tra

inin

g c

ou

rse

s

Bri

ng

re

ps

fro

m to

p 1

0 c

us

tom

ers

in

fo

r p

lan

t to

urs

100%

Com

ple

tion o

f LG

B P

roje

cts

Conduct interviews with top 10 customers

Train functional leaders as LGBs

Train leadership team as Lean Green Belts (LGB)

Your Annual Breakthrough

Objectives

You

r M

anag

er's

1-Y

ear

Bre

akth

roug

h

Obje

ctiv

es

Ind

icat

or's

and

Goa

ls

Benefits

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Top 5 Action Items

Driver Action Description Status Status Description Owner

Original Due

Date

Current

Due Date

Late Supplier Deliveries Monthly reporting to suppliers on delivery &

quality metrics.

On

track

Report Cards Implemented. Adam 5/21 5/21

Late Supplier Deliveries Arrange face to face meetings with top

offenders.

On

track

Meetings Complete with top 10

Suppliers.

Beth 6/15 6/15

Late Supplier Deliveries Review and approve supplier's corrective action

plan.

Caution Corrective Action Plan in Place for 2

major Suppliers

Carlos 7/15 9/15

xyz Cell Always Late Kaizen Event to focus on improving throughput

by 40% and improve labor efficiency by 35%

On

track

Event held 5/1. 25% throughput

improvement in May. Labor Efficiency

Increase of 30%

Doreen 5/21 5/21

Unrealistic Promise Date Focus on custom products to provide realistic

ATP based on inventory and leadtime of

components.

Problem Continued lack of progress. Re-

structured and focused team.

Developing detailed plan.

Earnest 6/15 8/15

ON TIME DELIVERY (sample)The percentage of sales order line items that ship complete on or before the original customer promise date, for

all line items shipped in the month.

On-Time Delivery

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Target

Pareto of Drivers

0%

25%

50%

75%

100%

Late

Supplie

r

Deliv

eries

xyz C

ell

Alw

ays

Late

Unre

alis

tic

Pro

mis

e

Date

Ord

ers

on

Cre

dit H

old

Low

Yie

ld

on p

art

abc

Engin

eering

Change

Ord

ers

Reason

% Im

pact

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Operational Excellence Training

Does it work?.

Source: American Customer Satisfaction Index, U Michigan, HBR, 2001

199973 companies

Ralston PurinaQuaker OatsHilton HotelsCoca-ColaUnilever

etc.

The top companies in Customer Satisfaction grow MVA atnearly twice the rate of their poor-performing counterparts.

$23

$42

0

10

20

30

40

50

Low High

Customer Satisfaction Index Score

Mark

et V

alu

e A

dd

ed

In Billions $

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Operational Excellence Training

What about Lean, TOC, TQM

Six Sigma

• Remove defects, minimize variance

Lean

• Remove waste, shorten the flow

TOC

• Remove and manage constraints

TQM

• Continuous Improvement

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Value Stream Map - Current State

Customer

Demand = 45 per day

2 shifts

Stamping

342

CT=1sec

Co=1 hr.

Uptime=85%

S. Weld # 1

CT=3 min

Co=10 min.

Uptime=70%

I

I

II

Coils5 days

CT= 15 min

Co=0 min.

Uptime=100%

2 shifts

CT= 67 min

Co= 23 min

FTY = 67%2 shifts

ShippingI

I81

202122

Assembly Test

90

1X

Daily

90/60/30 day

Forecasts

Order Entry

Production

Control

MRP

6 WEEK

Forecast

Suppliers

WEEKLY SCHEDULE

Lead Time - 34 Days

5 days

1 sec

7.6 days

3 min

1.8 days

15 min

2.7 days

67 min

4.5 days

4 min

2 days

Lead Time

=23.6 days

1 shift1 shift

CT= 4 min

Co=0

Uptime=100%2 shifts

Competitive Lead Time

= 3 Days

Takt Time

= 18.2 Minutes

Orders/day

= 36

Queue

= 1.5 Days

Touch Time

= 89 min

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Customer

Demand = 45 per day

2 shifts

Stamping

342

CT=1sec

Co=1 hr.

Uptime=85%

S. Weld # 1

CT=3 min

Co=10 min.

Uptime=70%

I

I

II

Coils5 days

CT= 15 min

Co=0 min.

Uptime=100%

2 shifts

CT= 67 min

Co= 23 min

FTY = 67%2 shifts

ShippingI

I81

202122

Assembly Test

90

1X

Daily

90/60/30 day

Forecasts

Order Entry

Production

Control

MRP

6 WEEK

Forecast

Suppliers

WEEKLY SCHEDULE

Lead Time - 34 Days

5 days

1 sec

7.6 days

3 min

1.8 days

15 min

2.7 days

67 min

4.5 days

4 min

2 days

Lead Time

=23.6 days

1 shift1 shift

CT= 4 min

Co=0

Uptime=100%2 shifts

Competitive Lead Time

= 3 Days

Takt Time

= 18.2 Minutes

Orders/day

= 36

Queue

= 1.5 Days

Touch Time

= 89 min

Competitive LT = 3 days

Takt Time = 18.2 min

Customer DataOn-Time Delivery

Demand = 45/day

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Customer

Demand = 45 per day

2 shifts

Stamping

342

CT=1sec

Co=1 hr.

Uptime=85%

S. Weld # 1

CT=3 min

Co=10 min.

Uptime=70%

I

I

II

Coils5 days

CT= 15 min

Co=0 min.

Uptime=100%

2 shifts

CT= 67 min

Co= 23 min

FTY = 67%2 shifts

ShippingI

I81

202122

Assembly Test

90

1X

Daily

90/60/30 day

Forecasts

Order Entry

Production

Control

MRP

6 WEEK

Forecast

Suppliers

WEEKLY SCHEDULE

Lead Time - 34 Days

5 days

1 sec

7.6 days

3 min

1.8 days

15 min

2.7 days

67 min

4.5 days

4 min

2 days

Lead Time

=23.6 days

1 shift1 shift

CT= 4 min

Co=0

Uptime=100%2 shifts

Competitive Lead Time

= 3 Days

Takt Time

= 18.2 Minutes

Orders/day

= 36

Queue

= 1.5 Days

Touch Time

= 89 min

Raw = 5 days

WIP = 12.1 days

FG = 6.5 days

Inventory

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Customer

Demand = 45 per day

2 shifts

Stamping

342

CT=1sec

Co=1 hr.

Uptime=85%

S. Weld # 1

CT=3 min

Co=10 min.

Uptime=70%

I

I

II

Coils5 days

CT= 15 min

Co=0 min.

Uptime=100%

2 shifts

CT= 67 min

Co= 23 min

FTY = 67%2 shifts

ShippingI

I81

202122

Assembly Test

90

1X

Daily

90/60/30 day

Forecasts

Order Entry

Production

Control

MRP

6 WEEK

Forecast

Suppliers

WEEKLY SCHEDULE

Lead Time - 34 Days

5 days

1 sec

7.6 days

3 min

1.8 days

15 min

2.7 days

67 min

4.5 days

4 min

2 days

Lead Time

=23.6 days

1 shift1 shift

CT= 4 min

Co=0

Uptime=100%2 shifts

Competitive Lead Time

= 3 Days

Takt Time

= 18.2 Minutes

Orders/day

= 36

Queue

= 1.5 Days

Touch Time

= 89 min

Touch Time = 89 min

Flow of ValueLead Time

Lead Time = 23.6 days

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Customer

Demand = 45 per day

2 shifts

Stamping

342

CT=1sec

Co=1 hr.

Uptime=85%

S. Weld # 1

CT=3 min

Co=10 min.

Uptime=70%

I

I

II

Coils5 days

CT= 15 min

Co=0 min.

Uptime=100%

2 shifts

CT= 67 min

Co= 23 min

FTY = 67%2 shifts

ShippingI

I81

202122

Assembly Test

90

1X

Daily

90/60/30 day

Forecasts

Order Entry

Production

Control

MRP

6 WEEK

Forecast

Suppliers

WEEKLY SCHEDULE

Lead Time - 34 Days

5 days

1 sec

7.6 days

3 min

1.8 days

15 min

2.7 days

67 min

4.5 days

4 min

2 days

Lead Time

=23.6 days

1 shift1 shift

CT= 4 min

Co=0

Uptime=100%2 shifts

Competitive Lead Time

= 3 Days

Takt Time

= 18.2 Minutes

Orders/day

= 36

Queue

= 1.5 Days

Touch Time

= 89 min

CT (67) > Takt Time (18)

ConstraintsOTD, Lead Time

Max Wip = 7.6 days

Page 31: 24341441 six-sigma

Customer

Demand = 45 per day

2 shifts

Stamping

342

CT=1sec

Co=1 hr.

Uptime=85%

S. Weld # 1

CT=3 min

Co=10 min.

Uptime=70%

I

I

II

Coils5 days

CT= 15 min

Co=0 min.

Uptime=100%

2 shifts

CT= 67 min

Co= 23 min

FTY = 67%2 shifts

ShippingI

I81

202122

Assembly Test

90

1X

Daily

90/60/30 day

Forecasts

Order Entry

Production

Control

MRP

6 WEEK

Forecast

Suppliers

WEEKLY SCHEDULE

Lead Time - 34 Days

5 days

1 sec

7.6 days

3 min

1.8 days

15 min

2.7 days

67 min

4.5 days

4 min

2 days

Lead Time

=23.6 days

1 shift1 shift

CT= 4 min

Co=0

Uptime=100%2 shifts

Competitive Lead Time

= 3 Days

Takt Time

= 18.2 Minutes

Orders/day

= 36

Queue

= 1.5 Days

Touch Time

= 89 min

CO = 23 min

CO = Changeover

Setup TimesOP Margin, Lead Time

CO = 1 hour

Page 32: 24341441 six-sigma

Customer

Demand = 45 per day

2 shifts

Stamping

342

CT=1sec

Co=1 hr.

Uptime=85%

S. Weld # 1

CT=3 min

Co=10 min.

Uptime=70%

I

I

II

Coils5 days

CT= 15 min

Co=0 min.

Uptime=100%

2 shifts

CT= 67 min

Co= 23 min

FTY = 67%2 shifts

ShippingI

I81

202122

Assembly Test

90

1X

Daily

90/60/30 day

Forecasts

Order Entry

Production

Control

MRP

6 WEEK

Forecast

Suppliers

WEEKLY SCHEDULE

Lead Time - 34 Days

5 days

1 sec

7.6 days

3 min

1.8 days

15 min

2.7 days

67 min

4.5 days

4 min

2 days

Lead Time

=23.6 days

1 shift1 shift

CT= 4 min

Co=0

Uptime=100%2 shifts

Competitive Lead Time

= 3 Days

Takt Time

= 18.2 Minutes

Orders/day

= 36

Queue

= 1.5 Days

Touch Time

= 89 min

MaintenanceOTD, Lead Time

Uptime = 70%

Page 33: 24341441 six-sigma

Customer

Demand = 45 per day

2 shifts

Stamping

342

CT=1sec

Co=1 hr.

Uptime=85%

S. Weld # 1

CT=3 min

Co=10 min.

Uptime=70%

I

I

II

Coils5 days

CT= 15 min

Co=0 min.

Uptime=100%

2 shifts

CT= 67 min

Co= 23 min

FTY = 67%2 shifts

ShippingI

I81

202122

Assembly Test

90

1X

Daily

90/60/30 day

Forecasts

Order Entry

Production

Control

MRP

6 WEEK

Forecast

Suppliers

WEEKLY SCHEDULE

Lead Time - 34 Days

5 days

1 sec

7.6 days

3 min

1.8 days

15 min

2.7 days

67 min

4.5 days

4 min

2 days

Lead Time

=23.6 days

1 shift1 shift

CT= 4 min

Co=0

Uptime=100%2 shifts

Competitive Lead Time

= 3 Days

Takt Time

= 18.2 Minutes

Orders/day

= 36

Queue

= 1.5 Days

Touch Time

= 89 min

QualityFTY = 67%

Page 34: 24341441 six-sigma

Customer

Demand = 45 per day

2 shifts

Stamping

342

CT=1sec

Co=1 hr.

Uptime=85%

S. Weld # 1

CT=3 min

Co=10 min.

Uptime=70%

I

I

II

Coils5 days

CT= 15 min

Co=0 min.

Uptime=100%

2 shifts

CT= 67 min

Co= 23 min

FTY = 67%2 shifts

ShippingI

I81

202122

Assembly Test

90

1X

Daily

90/60/30 day

Forecasts

Order Entry

Production

Control

MRP

6 WEEK

Forecast

Suppliers

WEEKLY SCHEDULE

Lead Time - 34 Days

5 days

1 sec

7.6 days

3 min

1.8 days

15 min

2.7 days

67 min

4.5 days

4 min

2 days

Lead Time

=23.6 days

1 shift1 shift

CT= 4 min

Co=0

Uptime=100%2 shifts

Competitive Lead Time

= 3 Days

Takt Time

= 18.2 Minutes

Orders/day

= 36

Queue

= 1.5 Days

Touch Time

= 89 min

What is the pitch time?

Flow of ValueOTD, Lead TimeWho is setting the pace?

Page 35: 24341441 six-sigma

D efine

M easure

A nalyze

I mprove

C ontrol

Operational Excellence Training

Making it happen

Three major roles

Implementer• Learns the tools

• Works the process

• Solves day to day problems

Manager• Learns the methodology

• Manages a value stream

• Reviews project teams

Leader• Establishes the vision for the future

• Sets priorities

• Encourages

Where do you

need to focus?