lean sigma introduction

8/9/2019 Lean Sigma Introduction

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Copyright 2004Copyright 2004 -- nMetric, LLC.nMetric, LLC.

Jason P. PremoVP Marketing, nMetric LLC

Tuesday, November 16, 2004

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Lean Six SigmaExecutive Introduction


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08-17-04 Copyright 2004Copyright 2004 -- nMetric, LLC.nMetric, LLC.

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Sound Familiar?

Some common themes we hear:

Whats the best methodology to use? We did Lean beforeit didnt work.

We already do Lean, so why Six Sigma? 6 Sigma is too complex/costly for my plant.

Projects take too long to complete Were collecting lots of data, so now what?

I have a Bachelors Degree in MS Excel!


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Meeting Goals

What we will accomplish today:

Understand the Lean-Sigma approach Discuss some of the common challenges

Define the Lean Sigma roadmap Benchmark successful best practices

Note: This is NOTa detailed 6 Sigma or

Lean Manufacturing Training Class


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Meeting Goals

1. Establish Team Charter

2. Identify Sponsor andTeam Resources

3. Administer Pre-Work

4. Confirm Team

5. Define Current State

6. Collect and DisplayData

7. Determine ProcessCapability and Speed

8. Identify Quick Wins

9. Determine Sources of

Variation and TimeBottlenecks

10. Generate Ideas

11. Conduct Experiments

12. Straw Models

13. Conducts Bs and Cs

14. Action Plans

15. Implement

16. Develop Control Plan

17. Monitor Performance

18. Mistake-Proof Process

Project ID Tools Project Definition Form

The Value of Lean SixSigma - NPV/IRR/DCFAnalysis

PIP Management Process

Quality FunctionDeployment

SSPI Toolkit Process / Value Stream

Mapping

Value Analysis ProcessObservation

Time Studies

Baseline Analysis

Brainstorming Voting Techniques

Pareto Charts Affinity/ID

C&E/Fishbones

Check Sheets

Run Charts

Control Charts

Gage R&R Process Capability

Cp & Cpk Supply Chain AcceleratorAnalysis

Multi-Vari

Box Plots

Marginal Plots

Interaction Plots

Regression ANOVA

C&E Matrices

FMEA

Problem Definition Forms

Opportunity Maps

Balance Models

Part Stratification Constraint I.D.

Brainstorming Pull Systems

Setup Reduction

TPM

Process Flow

Kaizen

Strategic Sourcing

Benchmarking Affinity/ID

DOE

Hypothesis Testing

Process Mapping

Bs and Cs/Force Field

Tree Diagrams

Pert/CPM PDPC/FMEA

Gantt Charts

Check Sheets Run Charts

Histograms

Scatter Diagrams

Control Charts

Pareto Charts

Interactive Reviews

Poka-Yoke

DefineDefine AnalyzeAnalyzeMeasureMeasure ImproveImprove ControlControl


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Discussion Topics

Todays Agenda:

1. Speaker Introduction2. The Need for Change

3. What is Lean Sigma?

4. The Lean Sigma Road Map

5. Lean Sigma Applied An Example

6. Question and Answer


6/11208-17-04 Copyright 2004Copyright 2004 -- nMetric, LLC.nMetric, LLC.

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Discussion Topics

Todays Agenda:








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Speaker Introduction

10+ years inmanufacturing Engineer to VP Ops

Company size from$4Billion to $40million

45+ Lean, Kaizen, Six

Sigma projects Started automationsystem integration firm

Presently a VP ofMarketing at nMetric

Jason P. Premo:



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Company roots arefrom manufacturing

Hydraulic Valves

Patented Software forLean Manufacturers

Real-time Collaborative

Production Management 4C@Site CPM Suite:

link to ERP, scheduling,

execution, tracking,analysis, and alerting

CommunicateMonitoring,Alerting &

Messaging

Collaborateto ERP, SCM,MES, EMI &

Legacy Apps

nMetric, LLC:

CorrelateRole-based

visibility andanalysis tools

CoordinateReal-time

Scheduling &

Execution



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4C@Site for Manufacturing:

Network / Internet

Industrial Network

4C links your top floor tothe shop floor andschedules, coordinates,

executes, tracks, analyzesand alerts on critical

operations in real-time.

ERP Legacy SCM CMMS Database

4C@Site picks up whereERP and other enterprisebusiness systems end.



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Discussion Topics

Todays Agenda:








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The Need for Change

Manufacturing Focus:

Managing Automation Magazine poll of350+ manufacturers in December 2003

Critical goals for their businesses include: Improve Customer Service Speed & Delivery

Build to Order & Reduce Inventory

Reduce Downtime & Maintenance Costs

Improving productivity is the key!



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The Need for Change

________________________________

Sales $100-Variable Costs $ 60

________________________________

=Contribution Margin $40-Fixed Costs $30

________________________________

=Profit $10________________________________

Productivity Focus: Inflated because ofdefects, scrap, rework,delay, process

inefficiencies, etc



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The Need for Change

________________________________

Sales $100-Variable Costs $ 60 - 5

________________________________

=Contribution Margin $40 + 5-Fixed Costs $30

________________________________

=Profit $10 + 5________________________________

Penny Saved Penny Earned:

A Cost Reduction of (5/60)100% = 8.3%Delivers a Profit Increase of (5/10)100% = 50% !!!

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The Need for Change

Lean Manufacturing

ContinuousImprovement World Class

Manufacturing

Six Sigma

JIT TQC

TQM Kaizen

BPR

Re-Engineering

5-S

Agile

SPC Quality Circles

Change Can Be Confusing:

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The Need for Change

84 world-classcompanies surveyed

GE, Motorola, Boeing,

Phizer, Home Depot, USArmy, DuPont, ITT, etc.

Over use Lean -

Sigma or Six Sigma 88% say improvements

relate to operations/mfg.

55% expect 1 to 7%margin improvement

Manufacturing Trends:

Source: Best Practices, LLC Report 2003

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Discussion Topics

Todays Agenda:






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What is Lean Sigma?

A Business Strategy:

Focuses on improving allprocesses new product development, administration,

finance, manufacturing, supply chain

Integrates approaches from both disciplines

Lean Manufacturing: time and waste reduction

Six Sigma:process variabilityreduction

Deployed within an integrated and

disciplined project management approach

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What is Lean Sigma?

Focus on reducing the7 Forms of Waste

Anything that adds cost

to the product withoutadding value is waste!

Founded on Toyota

Production System Kaizen, 5S, TPM,

Jidoka, One-piece-flow,

JIT, SMED, StandardOperations, etc.

Lean Manufacturing:

see know now



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What is Lean Sigma?

The Toyota Production System:

Just in Time

Continuous FlowPull SystemUncompromising

ServiceLevel Production

Foundation Built on Principles:

Standard Work - Leadership - Workplace OrganizationEmployee Involvement - Equipment Reliability - Supply Chain Effectiveness

Quality / CostDelivery / Safety

Goal is to be #1 in Every Area!

Built In Quality

Line StopVisual ControlsLabor / Machine

EfficiencyMistake Proofing

ContinuousImprovement Culture

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What is Lean Sigma?

Total Cycle Time Approach:

R&D Plan MFG Dist A/R

R&D Plan MFG Dist A/R

Total Operational Cycle

see know now



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What is Lean Sigma?

Defining Value Added:

VA Non VA


What is the amountof time for one unitof product to run

through the plant?(A)

If I placed an ordertoday, when would I

receive it?

(B)

A = ____ B = ____ A / B = ____%

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What is Lean Sigma?

My Personal Example:

VA Non VA


What is the amountof time to print andpackage a typical

custom labels order?(A)

How long does it actuallytake to process an order

from order entry to

shipment?(B)

A = 4hr B = 168hr A / B = 2.4%

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What is Lean Sigma?

The Business As Usual Approach:

VA Non VA


VA Non VA Gain

Capital or labor investments usuallyfocus on the Value Addedportion ofthe total cycle, minimizing the gain

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What is Lean Sigma?

The Lean approach:

VA Non VA


VA Non VA $$$ Gain $$$

Lean identifies the sources ofwaste to reduce theNon Value addedelements

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What is Lean Sigma?

A data driven approach toreducing & controlling thesources ofvariation

What causes a process tonot consistently meet target

Developed by Motorola

and made famous by GE DMAIC & DMADV Methods

DOE, Regression, CpK

Black Belt leaders

DEFINE

MEASURE

ANALYZEIMPROVE

CONTROL

Improve the capability ofyour business to meet

and exceed yourcustomers expectations

Six Sigma:

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What is Lean Sigma?

Understanding Variation:

X X

X

X

X

X

XX

X

Variation or spread oflanding positions

Average or mean locationof all touchdowns

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What is Lean Sigma?

Understanding Variation Part 2:

X XXX XXX

XX

Sowhich pilot would

you choose for yournext flight? Why?

ButSmaller spread orvariation of touchdowns

Notice it has thesame average!

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What is Lean Sigma?

NumberofDefectsNumberofUnits =D.P.U

D.P.Ux10000

00

Numbero

fOpport

unities

=D.P.M.

Op.

Capability=

A quality level of "6" corresponds to lessthan 3.4 defects per million opportunities

(or 99.99966% of the opportunities are within the customer requirements)

Simplifying Six Sigma:

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What is Lean Sigma?

Why Sigma Level is Important:

The cost to deliver a quality product canaccount for as much as 40% of sales price!

An $800 laser printer may have cost themanufacturer $320 just to make sure that youtook home an average quality product

Scrap, Rework, Non-Value Add, etc. For a company with $100million revenue,

the cost of quality is often roughly 25%!

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What is Lean Sigma?

The Cost of Quality

COST OF QUALITY level DPMO Cost of Quality

2 308,537 Not Applicable3 66,807 25%-40% of sales

4 6,210 15%-25% of sales

5 233 5%-15% of sales

6 3.4 < 1% of sales

Each sigma shift provides a 10% net

income improvement!

What if this samecompany could reduceits cost of achieving

quality by 20%?

Operating revenue

would increase by atleast $5 million

Or 50% of the current

operating income!

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What is Lean Sigma?

Measuring Sigma Level:

Estimate theOpportunities

Count theDefects

Defects per million Opportunities

Conversion into "Sigma" canbe accomplished with the helpof a statistical table or software

6 = 3.4 dpmo

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What is Lean Sigma?

Customer Perspective: Delivered Product1 Control Board = 1 opportunity

Production: Processes, Inputs, VariablesControl Board = 1,200 opportunitiesSoftware Code = 12,000 opportunities

Customer Service/Accounting: Number of fieldsPurchase Order = 20 opportunities

Logistics / Shipping: Packaged UnitCorrect Pallet Items = 50 opportunities

Defining Opportunities:

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What is Lean Sigma?

Each Cell Phone has1367 defect opportunities

D.P.Op = 0.035 / 1367 = 0.0000256

D.P.U = 175 / 5000 = 0.035

D.P.M.Op = 25.6

Sigma level : 5.55

175 defects are counted whileproducing 5000 Cell Phones

How to calculate your Sigma level:

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What is Lean Sigma?

Putting it all together:

The Tools:

DMADV Statistical tools

Value Stream Mapping

Quality Function Deployment

Manufacturing Design

Benchmarking CTQ Risk Matrix

The Tools:

DMAIC Statistical tools


SIPOC

FMEA

Process Mapping Design of Experiments

The Tools:

Cellular Design 5S Workplace Organization

Kanban and pull systems

Setup Reduction (SMED)

Total Productive Maintenance

Poka-Yoke Kaizen Blitz

DFSS Goals:

Integrate Six Sigma from start

Error free product delivery

Integrate Voice of Customer

Multiple customer requirements

Faster time to market

Competitive Advantage

Six Sigma Goals:

Defect prevention

3.4 defects per million

Reducing Variation

Stability

Predictable Processes

Solve complex problems

Improve Value Stream

Lean Manufacturing Goals:

One Piece Flow

Just In Time Inventory

A Visual Factory

Agile Manufacturing

Higher Value-Add %

Overall Equipment Effectiveness

Work Flow Standardization

DFSSSix SigmaLean

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Discussion Topics

Todays Agenda:






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The Lean Sigma Road Map

Implementing Lean Sigma:

There is no magic bullet everybusiness is different and must be adapted

Many companies have tried continuousimprovement with only limited results

Getting started with Lean Sigma requires

commitment by senior management

Simply picking and choosing the tools like

items from a menu will not produce results

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Breakthrough Process:

Transfer to Entire Value StreamStep 6

Advanced Tool DeploymentStep 5

Basic Lean Sigma Tool DeploymentStep 4

Define Key MetricsStep 3

Structure & EducationStep 2

Vision & CommunicationStep 1

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Define the Vision Use the WIFM Principle

Create a Customer Centric Culture Happy Customers = Job Security

Communication Example

Vision & CommunicationStep 1

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Define the Future Vision:

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Use the WIIFM Principle:

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Create a Customer Centric Culture:

Employees do not close plants and forcecompanies out of business, customers

not buying products do.

Dr. W. Edwards Demming, 1950s

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Happy Customers = Job Security:

Customer

Low Cost

High Quality

Availability

Your Company

Profit

Repeat BusinessGrowth

Cash !!Cash !!$

Value !!Value !!

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Organization & Best Practices

Black Belt Best Practices


Weighing the Priorities Create a Lean Sigma Business Plan

Action Plan Example

Focus, Structure & EducationStep 2

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Organization:

Champion

MFG. Finance Black Belt

Shifts Green Belt Integrator

Representatives fromdepartments and shifts

help improve buy-in and

communications

Successful companiesleverage a foundation

Top Decision Makers

Supportive Champions Team Structure Strategic & Action

Empowered Leaders Cross functional is keyfor gaining buy-in

Production, Quality, Finance, IT, Purchasing

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Black Belt Best Practices:

75% of manufacturers have close to 10blackbelts engaged in process

57% usually manage between 1-3 projects 25% manage 4-5, 10% 6-10, 9% over 10

32% of total projects have a financialimpact of $100-$500K

27% are $500k-$1M, 27% are $1M $5M,

and 14% are >$5M

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Value Stream Mapping:

VSM is a mapping tool that maps not onlymaterial flows but also information flows

What signals and controls the material flows?

This visual representation facilitates theprocess of lean implementation

Identify the value-adding steps in the process

Focus on how to eliminate the non-value

adding steps, or wastes (muda)

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Value Stream Mapping Example:

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Weighing the Priorities:

HIGH

Impact ofContemplated

Changes?LOW HIGH

LOW

Support for Contemplated Changes

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Create a Lean Sigma Business Plan:

confidential

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Action Plan Example:

Project: 4 Color Heidelberg

Rep: Jay SnikerGoal: Implement new 4-Color Heidelberg Press by May 30

Note: Provide updates to Actions, When, Comments, etc. in BOLD

Action Person Responsible People Doing Work Start Date Finish Date

1 Kaizen Event Layout Premo Premo, Jay, Richard 1-Mar 30-Mar

2 Develop Equipment Capital Requirements Premo Premo, Sniker, Pace 1-Mar 6-Apr

3 Determine sales and pricing strategy Premo Premo, Nelson, Bill Cesak 1-Apr 30-May

4 Pre-Press Process Sniker Premo, Sniker, Taylor 1-Apr 15-May

5 Draft AFE Sniker Sniker, Premo 15-May 30-May

6 Press Installation Sniker Sniker, Premo, Pace 30-May 15-Jun

7 Pre-press and print test run Sniker Sniker, Premo, Taylor 15-Jun 20-Jun

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Communication Example

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Key Performance Indicators

Leading versus Lagging

The 4 Rs of Measurement

The Balanced Scorecard Using the IPOC Method

Make it Obvious, Examples

Define Key MetricsStep 3

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Key Performance Indicators:

XsInputs Outputs

ManpowerMachineMaterials

Methods

ProductsServices

Information

Performance?

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Leading versus Lagging:

Leading indicators foreshadow outcomes They are proactive or preventative measures

Lagging indicators describe the results ofa system or process in a given time

They are reactive or descriptive examples

Most companies employ lagging indicators

Such as financial month end reports

Weekly or monthly production reports

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The 4 Rs of Measurement:

Relevant: does the measure have a significantrelationship to strategy and objectives?

Reliable: will the measurement help identify the

strengths and weaknesses of one or morebusiness processes?

Reasonable: is its purpose easily understood byits name alone to all those that contribute?

Reachable: is the data necessary for computing

this measure available for use?

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The Balanced Scorecard: Combines both financial and operational

measures in an integrated system Financial: How do our shareholders and

stakeholders define our companys success?

Customer: What do they hold most important toearn their continued business?

Internal: To delight customers and shareholders,

what business and operational processes must weexcel? What are the industry benchmarks? Innovation: To achieve our vision, how must the

organization continuously learn, improve, and

create higher value?

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Using the IPOC Method:

Products

Services

Documentation

Results

Design of

Products

Production ofProducts

Performanceof Services

Delivery of

Products/Services

People

Raw Materials

Components

CustomerRequirements

Capital

Customer

NeedsSatisfied

Customer

ProblemsSolved

Customer

RequirementsMet

Inputs Processes Outputs Customers

Good KPIs providemeasurements

focused oncustomers (internal

or external)

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KPI Examples:

OEE

On Time Delivery

MTBF

MTTR

Labor $ / Unit

COPQ

Inventory Turns

WIP Value

Scrap

First Pass Yield

DPM / Sigma

Process Capability

OSHA RIR

Near Misses

5-S Compliance

Employee TrainingCompliance

Quality Cost Delivery Safety

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What is Lean Sigma?

Measures the value-add contribution ofequipment & processes

It measures the % oftime equipment in afactory is actuallymaking qualityproductcompared to a

theoretical maximum i.e. what you paid for

%

YIELD

%UPTIME

PROCESSEFFICIENCY

OEE

OEE = %uptime x %yield x %efficiency

World Class is > 87.5%

Overall Equipment Effectiveness:

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Make it Obvious: If the measurements

are not obvious, theywill not be meaningful nor will they be used!

Additionally, what isobvious to one person,may not be for another Make it role based, by

area, person, etc Apply the Visual

Factory method to allscore boards

Say, Thagthink wall of

ice be closer today?

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Make it Obvious Example:

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KPI example for a work cell:

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Basic Lean Sigma Tool DeploymentStep 4


Just in Time Training 5S as a Foundation

5S Examples

Setup Reduction and More

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S


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JIT Training:

Start with the high priority financial impactprojects, but balance the selection

What is the speed & ease of implementation?

Goal: Achieve rapid buy-in and quick results

Apply Just in Time Training

Dont train everyone on everything!

Begin with 5S Workplace Organization, Visual

Controls and Standardized Work

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Th L Si R d M


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5S as a Foundation:

High productivity is difficult to obtain in a workplacethat is cluttered, disorganized, or dirty

Poor workplace conditions often lead to waste

extra motion to avoid obstacles time spent searching for things

delays due to defects, machine failures, or accidents

5S is a process for creating and maintaining anorganized, clean high performance workplace

A place for everything and everything in its place

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Th L Si R d M


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5S as a Foundation:

11 SeiriSeiri SortSort -- Clear out nonClear out non--essentialsessentials

22 SeitonSeiton Set in OrderSet in Order-- Configure WorkplaceConfigure Workplace

33 SeisoSeiso ShineShine -- Clean the environmentClean the environment

44 SeiketsuSeiketsu StandardizeStandardize -- Define the routinesDefine the routines

55 ShitsukeShitsuke SustainSustain -- Comply to the StandardComply to the Standard

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Th L Si R d M


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Sort Example:

Red Tag

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Th L Si R d M


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Shine Example:

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Th L Si R d M


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Set in Order Example:

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Th L Si R d M


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Standardize Example:

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Th L Si R d M


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Sustain Example:

90% isthe team

Goal

Daily checklist is

used and scored,weekly average ischarted as a point

on the graph

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Th L Si R d M


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Setup Reduction:

Convert internal elements to external

whenever possible

Separate internal and externalprocesses in the setup

5-S Workplace Organization to lay

the basic foundation for the area

Streamline, Eliminate, Reduce all

other spects of the setup process

Phase One

Phase Two

Phase Three

Phase Four

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Th L Si R d M


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Setup Reduction:

S/U Run 400 min

Running a Batch with a Set-Up time of 50 min:

S/U S/U S/U S/US/URun 80

minRun 80

minRun 80

minRun 80

minRun 80

min

Without addressing set up time in todays JIT world

What if set up time is reduced to 10 min?Run 80

min

Run 80

min

Run 80

min

Run 80

min

Run 80

min

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Th L Si R d M


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Advanced Tool DeploymentStep 5


Advanced Thoughts First Pass Yield

Process Capability

Correlation

Control Charts

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Th L Si R d M


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Advanced Thoughts:

Implement more advanced Lean methods Cellular Manufacturing, Total ProductiveMaintenance, Mistake Proofing, Kanban

Train leaders (black belts) on more tools statistical methods to solve more complex

process variation and reliability problems

Process Capability, Design of Experiments

WARNING: Dont move to this step unless

you master the basic tools first!

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Process Capability Ideally the customer would like a simple answer to

this simple question: yes or no? Unfortunately, several issues often prevent this:

Inspection is not perfect; even 100-percent inspection

won't guarantee 100-percent quality. All processes vary somewhat, and the variation mustbe analyzed using statistical methods that predict atleast an occasional failure.

Measurement isn't perfect, so even if a process didhave zero variation, our measurements would still vary.

This means that we might accidentally ship a defectiveitem even if we measure it carefully.

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What is Lean Sigma?


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What is Lean Sigma?

To most people, processcapability is often a

jumbled confusion of ideas

expressed in jargon However, if properlyapplied it helps provideanswers to the question:

Can you meet my

requirements?

Process Capability:

Process Capability Measures Chart

-300 -200 -100 0 100 200 300 400 500

Critical Measure

Mean = 112.725

StdDev = 106.13054

USL = 225.55

LSL = 0.

Sigma Level = 1.062

Sigma Capability = 1.063

Cpk = 0.354

Cp = 0.3542

D.P.M. = 287961

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Calculating Process Capability:

1 2 3 4 5 67 8

C 0.33 0.66 1 1.33 1.66 2 2.33 2.66

C k -0.16 0.16 0.5 0.83 1.16 1.5 1.83 2.16

Cp =Design specification width

6

3Cpk = Min.

Mean - Spec Limit

With a maximum process shift of +/- 1.5

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What is Lean Sigma?


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What is Lean Sigma?

Typical yield or scrapmeasurements onlyshow the final result

First Pass Yield (FPY)measures total efforts FPY is the probability

that a product will passthrough the processwithout incurring rework

First Pass Yield:

25 piecesReworked

1000ProcessStation

#1

1000

Part

In

Parts

Out

Fantastic!We had ZERO % Scrap!

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Correlation sometimesindicate causality.

Prediction and possiblyprocess guidance maybe possible

Recognizing datapatterns is important! This graph shows an indirect

relationship for OEE asHUMIDITY increasesHumidity

O

EEPerfor

mance

Understanding Correlation:

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Understanding Control Charts:

Upper Control Limit (UCL)

Lower Control Limit (LCL)

Zone A

Zone A

Zone B

Zone B

Zone C

Zone Cx=

1

2

3

3

2

1

Look for the following: One or more points outside the

control limits

7 consecutive points on one side ofthe centerline

7 consecutive increasing ordecreasing intervals

2 out of 3 consecutive points in aspecific zone A or beyond

4 out of 5 consecutive points in aspecific zone B or beyond

14 consecutive points that alternateup or down

14 consecutive points in zone C

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Transfer Thoughts Establish Transfer Forums

Move Up and Down Supply Chain

Transfer to the Entire Value StreamStep 5

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Transfer Thoughts

Begin in a business unit or department andachieve success in the basic tools, thenproliferate successes in other areas

Alternative is to dig deeper in a single area withadvanced tools first, then move elsewhere

Document best practices & methodologies Share with other departments, suppliers

and customers

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Establish Transfer Forums:

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Discussion Topics


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Discussion Topics

Todays Agenda:






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Lean Sigma Applied


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Lean Sigma Applied

Charlie, Im looking at yourrequest for a new packaging line.

We need to talk aboutjustification before I present this

the board of directors.

Jason, the volume for TYPEXYZ labels are up by 30% this

year and we only have twolines that are tooled to

produce this. Were runningboth of them flat out and lots

of overtime to boot!Were not going to be able to

meet customer demand!

Charlie (Plant Manager)

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Lean Sigma Applied

On the surface, it looks like an open andshut case. Charlie is doing everythinghe can to maximize output from the twolines and volume is growing. However,these latest numbers show that Line #2

output is lower than Line #1.Id better work with Charlie and the

team to find out whyLooks like nowsa great time to introduce Lean Sigma!

On the Surface:

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Lean Sigma Applied

Charter the Blitz Team:

Lean-Sigma

Blitz #1 Rose Laster Evelyn Benter

Susan Poage

Tammy Davis

John Freeman

Paul Carroll

Carl Sagers

Richard Schira Debbie Young Charlie Boone

Team Leader Jason Premo

Facilitator

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Lean Sigma Applied

Paul, any ideas why Line #2 inWork Cell A output is lower?

I walked by and noticed it wasrunning slower than Line #1

Yup, after the gears seizedon the slitter for the second

time, I turned the speeddown to try and prevent itfrom happening again. It

seems to have done thetrick

Both downtime and scrapare much lower now.

Paul (Maint. Tech)

I wonder whatthe full impact

is on capacity.Ill ask John tohelp me do that

analysis

Charlie (Plant Manager)

Investigating Uptime:

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Lean Sigma Applied

GrumbleLook at all of theseforms they want me

to fill out!

How can I meet mynumbers if this

paperwork takes timeaway from the press?

Kaizen must beJapanese for lots ofstupid paperwork

Downtime LogScrap Log

Production Log

Operator Buy-In Challenges:

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Efficiency Findings


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Efficiency Findings

Hi Charlie, our initialOEE analysis shows

a lot of downtime.

John (Process Engineer)

Oh one more thingThe line design speed

is actually 350 perminute. Seems we

are consistently

operating at about245 per minute

Efficiency Baseline:

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Quality


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Quality

So, the 2nd packaging line isrunning less than 50% of thetimeand then only about70% of its design speed.

I wonder about its scrap

Let me see, Line #2we had

to reject a whole batch lastweek - that was a completeshifts worth of production!Overall, about 10% scrap for

the month.

Carl (Quality Manager)

Actually, thats goodnews. We thought we

were going to have over30% scrap, but were able

to rework most of it

Investigating Yield:

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Lean Sigma Applied


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Lean Sigma Applied

Good grief!How can I justify purchasing

a new line, when were barelygetting our moneys worth on

the existing one?

And what about that rework!How long did it take for us to

re-process that order?No wonder I have to run

Saturday overtime!

44.8% uptime x 90% yield x 70% efficiency = 28% OEE!

I just completed thecapability and yield

analysis. Ill send you afull report

Calculating OEE:

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Lean Sigma Applied


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Lean Sigma Applied

1000

990/1000 Press x 850/1000 Slit x 890/900 Pack = 83.2% FPY

10 Rework0 Scrap

150 Rework100 Scrap

10 Rework0 Scrap

1000 900900

900/1000 = 90% Yield (10% Scrap)

Calculating First Pass Yield:

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Lean Sigma Applied


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Lean Sigma Applied

Process Capability Measures Chart

-300 -200 -100 0 100 200 300 400 500

Critical Measure

Mean = 112.725

StdDev = 106.13054

USL = 218.8

LSL = 6.6

Sigma Level = 0.999

Sigma Capability = 1.

Cpk = 0.3332

Cp = 0.3332

D.P.M. = 317450

6

3

1

2

45

USLLSL

Press #2 does not consistentlymeet customer requirements!

Statistical analysisshow a CpK of only

0.33, Sigma of 1,and DPM of 317,430

Many samples fall

outside of the specs!

Calculating Process Capability:

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Lean Sigma Applied


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Lean Sigma Applied

44.8% uptime x 90% yield x 70% efficiency = 28% OEE!

EfficiencyEfficiency

QualityQuality UptimeUptime

ReworkRework

99% Press x 85% Slit x 98.8% Pack = 83.2% FPY!

Cpk of only .33 = 317,000 defects per million!

The Hidden Factory:

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Histogram and control charts:

Histogram

0

2

4

6

8

10

12

-5 -3 -1 1 3 More

Bin

Frequency

Frequency

Day's Late Control Chart

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29

UCLCL

Day Late

LCL

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Quality Defect Check Sheets:D e f e c t i v e I t e m C h e c k S h e e t

D a t e :P r o d u c t : 2 5 D i s s a t E x a m p l e sM a c h i n e : L i t h o g r a p h i c P r o d u c t i o nO p e r a t o r : M u l t i p l e O p e r a t o r s a n d R e p s

P r o b l e m : W e f o u n d t h a t I m p r o p e r M a t e r i a l S p e c s

s u b m i t t e d o n o r d e r t o v e n d o r , P o o r C o m m u n i c a t i o n s , L a c k o f S a l e s Q u a l i t y

C o n t r o l w e r e t h e l a r g e s t f a c t o r s

D e f e c t T y p e C h e c k S u b t o t a l

C o m m u n

C u s t - S . R e p

X X X X X X 6

N o S a l e s Q C X X X X X X X X 8

W r o n g C o p y

o n o r d f o r mX 1

P o o r C o m m s X X X X X 5

I n c o r r e c t

S p e c s o n o r dX X X X X X X X X X X X X X X

X X X X X X

2 1

R e f e r r i n g t o

o l d v e r s i o nX X X 3

P o o r R e c o r d

K e e p i n gX X X 3

P e n m a n s h i p X X 2

H a r d c o p y

n o m a t c h

1

D i d n t u s e

t o o l s

X 1

P o o r L a y o u t X 1

G r a n d T o t a l 8 2

T o t a l

D e f e c t i v e s

X X X X X X X X X X X X X X X

X X X X X X X X X X X X X X X X

2 6

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Pareto analysis tool application:

Possible Root Cause

# of Jobs

Affected Percent

Cumul

Percent

Print out of register 15 29% 29%

Equipment in Poor Condition 9 18% 47%

Lack of attention to detail 7 14% 61%

Hickeys on paper 5 10% 71%

Other (items not originally considered) 5 10% 80%

Press operator not trained 4 8% 88%

Static Electricity 2 4% 92%

Used wrong PMS color 2 4% 96%

Material poor quality (ink, paper) 2 4% 100%

Total 51 100%

# of Jobs Affected

02468

1012

1416

Printoutof

register

Lack

of

attentio

nto

deta

il

Other

(items

not

origin

ally

Static

Electricity

Mater

ial

poorquality

(ink,pa

per)

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Opportunities for 5S?

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Team Findings: Poor Housekeeping and Organization

Lots of clutter, poor equipment cleanliness

Hard to find tools, supplies, materials = delays

Too much internal setup processes Lots of tasks could be done off-line Cylinders, etc. could be pre-set to common jobs

Lack of Standard Processes Correct sequence of steps (easy to forget a step!)

No easy way to set cylinders result in moving web

guide = more time and scrap

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Applying Shine:

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Applying Set-in-Order:

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Applying Standardization: Using a Jigto help set the

anvil clearance!

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Adopting a Standardize Mentality:

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Basic Housekeeping Activities:

All three shifts - Every Day

*Turn in all work orders to Brenda Butler and a copy to Jason Premo1 2 3 1 2 3 1 2 3 1 2 3 1

Checkall guard doors and interlocks for E-Stop activationReplace any damaged parts, missing screws, bolts, etc. Write Work Orders

Clean photo eyes and any reflectors w/ compressed air

Clean catch pan of any fallen clamshells , debris

Apply few drops of oil on all shafts, linear bearings, and other areas that do not have

grease fittings

Clean photo eyes and reflectors w/ compressed air

Thoroughly clean off all dust and debris build-up

F&P

Tech

F&P

WhoDaily PM

Blister Picker

MGS Counters

and Card

Feeder

All Stations

M TU W TH

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e ea S g a oad ap

Setup Reduction SOP:

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g p

Making Sustain Visible:

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g p

Project Results: 5 Day Blitz, 30 day

follow-up action plan Reduced travel

distance by 65%

Reduced setup timefrom 1hr to 15 min

Reduced scrap by 30% Increase FPY from

83% to over 98%

Improved OEE from28% to 52%


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p

Todays Agenda:1. Speaker Introduction

2. The Need for Change


4. The Lean Sigma Road Map5. Lean Sigma Applied An Example


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Question and Answer


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Thank You!


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