24341441 six-sigma
TRANSCRIPT
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?
D efine
M easure
A nalyze
I mprove
C ontrol
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
D efine
M easure
A nalyze
I mprove
C ontrol
Operational Excellence Training
Define
Is it a Goal, a Measure, a Process, a Tool or an expletive
deleted?
Yes
D efine
M easure
A nalyze
I mprove
C ontrol
Operational Excellence Training
Define
Six Sigma
Is a management methodology
• Customer focused
• Data driven decisions
• Breakthrough performance gains
• Validated bottom line results
D efine
M easure
A nalyze
I mprove
C ontrol
Operational Excellence Training
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
D efine
M easure
A nalyze
I mprove
C ontrol
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=
D efine
M easure
A nalyze
I mprove
C ontrol
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
D efine
M easure
A nalyze
I mprove
C ontrol
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
D efine
M easure
A nalyze
I mprove
C ontrol
Operational Excellence Training
Define
Methodology
Define
Measure
Analyze
Improve
Control
D efine
M easure
A nalyze
I mprove
C ontrol
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 $
• 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.
D efine
M easure
A nalyze
I mprove
C ontrol
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)
D efine
M easure
A nalyze
I mprove
C ontrol
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
D efine
M easure
A nalyze
I mprove
C ontrol
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
D efine
M easure
A nalyze
I mprove
C ontrol
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
Example chart to rank projects 0106-01 Project Rating.xls
D efine
M easure
A nalyze
I mprove
C ontrol
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
D efine
M easure
A nalyze
I mprove
C ontrol
Operational Excellence Training
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
D efine
M easure
A nalyze
I mprove
C ontrol
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
D efine
M easure
A nalyze
I mprove
C ontrol
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
D efine
M easure
A nalyze
I mprove
C ontrol
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
D efine
M easure
A nalyze
I mprove
C ontrol
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
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
D efine
M easure
A nalyze
I mprove
C ontrol
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 $
D efine
M easure
A nalyze
I mprove
C ontrol
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
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
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
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
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
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
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
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%
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%
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?
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?