JULIAN KALAC -EXAMPLES OF LEAN SIX SIGMA BLACK BELT PROJECTS
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The document provides 12 examples of Lean Six Sigma projects that resulted in cost savings through process improvements. The first example describes a project that increased production capacity of HVAC duct elbows by designing a one-man cell to run three semi-automatic machines simultaneously, achieving annual savings of $472k. Another project reduced robot welding setup time from 38 minutes to zero by designing modular fixtures, achieving annual savings of $650k. A third project converted batch production to continuous flow, increasing shift capacity by 82% and eliminating the need for overtime.
JULIAN KALAC -EXAMPLES OF LEAN SIX SIGMA BLACK BELT PROJECTS
- 1. JULIAN KALAC LEAN SIX SIGMA PROJECTS 13-Jan-2016 Page 1 of 13 Examples of Lean Six Sigma Cost Saving Improvements 1. HVAC DUCTING PRODUCTION CAPACITY INCREASE DP largest unit production item are elbows (Galvanized, HVAC Duct Elbow) Current capacity = 2.1 million elbows per year ( 2 shifts 5days + 2days OT) Current demand has increased to 2.5 million of them per year. Three possible solutions to the capacity short fall problem. current cost per elbow is $0.68 Solution 1). add a third shift, cost per elbow $0.76 Solution 2). outsource the 440,000 elbows, cost is $0.82 Solution 3). Buy 3 new machines, cost to make is $0.62 with a payback in 1.3 years Currently 1 operator runs 2 machines (manual labour intensive machines) Improvement: Designed a 1 man cell to run 3 semi-auto machines simultaneously The payback =1.3 years with annual savings of $472K ($0.08 cost/pc reduction ) New machines designed for quick changeover <10min vs current 25min (efficiency gains). RESULTS: 1 MAN CELL 3 MACHINES REDUCED LABOUR COST BY TOTAL ANNUAL SAVINGS AFTER PAYBACK = $472K IN COST/PC REDUCTION
- 2. JULIAN KALAC LEAN SIX SIGMA PROJECTS 13-Jan-2016 Page 2 of 13 2. Robot Welding Setup Time Reduction ----Tier 1 Automotive ($650K/year savings PROBLEM STATEMENT 2 station robot weld down 38min between changeovers, 6 changeovers/day = 3.8hrs downtime/day Current setup time= 38min Standard Time= 15min Target setup Time < 5min IMPROVEMENTS: Designed 6 SIGMA modular welding fixtures, with quick connect clamps and eliminated bolts, screws and combined tacking with robot welding into 1 operation Implemented SMED external setup and eliminated internal setup time Standardized welding fixtures, eliminated bolts, screws and implemented , 5S shadow board, tooling push-pin toggle clamps RESULTS: ZERO SETUP TIME ACHIEVED Robot 9 SMED SOP=ZERO SETUP TIME SIDE A CHANGEOVER step # Operation Est Time (min) 1 PREPARE NEXT WO MATERIAL 4 2 GET NEEDED FIXTURES/TOOLS/CLAMPS 3 3 UNLOAD LAST PARTS FROM SIDE 1 1 4 INSPECT AND TOUCH UP PARTS 2 5 TACK PARTS 2 (EXTERNAL SETUP) 6 TAKE DOWN FIXTURE FROM SIDE 1 4 BEING DONE 7 LOAD PARTS ONTO SIDE 1 1 WHILE ROBOT rUNNING 8 START WELDING SIDE 1 0 TOTAL TIME FOR SETUP= 16 WELD CYCLE STARTED = 8 T SETUP TIME CLOCK STARTS AFTER 8 MIN SIDE B CHANGEOVER EXTERNAL SETUP 7 TAKE DOWN FIXTURE FROM SIDE 2 5 INCLUDED IN 8 LOAD PARTS ONTO SIDE21 1 WELD CYCLE (8MIN) 9 START WELDING SIDE 2 0 TOTAL SETUP TIME SIDE B= 6 TOTAL INTERNAL SETUP TIME= 0 TOTAL EXTERNAL SETUP TIME= 12 OLD SETUP TIME (MIN)= 38 DEC 4 SETUP (MIN) = 0 SETUP TIME IMPROVEMENT (MIN) = -38 WHILE THE ROBOT IS WELDING SIDE B, LOST TIME=0 MIN GOAL IS TO CHANGE STATION A BEFORE ROBOT FINISHES WELDING SIDE B DURING WELD CYCLE (8MIN) THE FOLLOWING WAS DONE
- 3. JULIAN KALAC LEAN SIX SIGMA PROJECTS 13-Jan-2016 Page 3 of 13 3. Lean - Packaging Productivity Improvement ----Consumer Goods Packaging Converted Batch & Queue into continuous flow production which reduced total cycle time from 3 days to 12hrs/order Increased shift capacity by 82% Eliminated 3rd shift (14 operators + temps) Redesigned the layout into LEAN Flexible CELLS with cross functional trained workers, rotation schedule to manage bottlenecks and 5S Reduced online “hidden rework” costs by 40% and implemented in-process checks to ensure a “check and balance” system Reduced inventory by 30% ($1Mil inventory reduction) total operational savings over $742K BEFORE LEAN MANUFACTURING AFTER LEAN IMPLEMENTATION
- 4. JULIAN KALAC LEAN SIX SIGMA PROJECTS 13-Jan-2016 Page 4 of 13 4. INJECTION MOULD SET-UP REDUCTION PROJECT --($500K/annual savings) Problem Statement: 22 injection moulds ranging from 93 weeks new to moulds over 10 years old), varied in sizes & capacities, had set-up/changeover times from 4-6hrs, resulting over $500K machine inefficiencies and productivity losses Objective: Reduce the set-up time from 6hrs to under 2hrs Significant Improvements: over 4.5hrs of Set-Up Time was reduced by the following IMPROVEMENTS: o Implemented SMED principles, 5S SHADOW BOARDS, standardized, Set-Up o New water manifolds with shorter hoses and different IN/OUT connectors o Standardized bolt lengths and utilized quick-connect clamps o Interchangeable inserts and standardized back plates with different hole pattern o Standardized Mould kits & implemented shadow boards o Documented SOP and validated set-up/changeover on different shifts These improvements resulted in over $500K annual savings Setup/Changeover Tooling Improvements
- 5. JULIAN KALAC LEAN SIX SIGMA PROJECTS 13-Jan-2016 Page 5 of 13 5. EATS LEAN TRANSFORMATION PROJECT ----Total Savings= $900K/year Exhaust After Treatment System “EATS” Tier 1 Automotive Supplier to Volvo and Mack Problem Statement 1. Product/design issues causing 30% Internal Quality reject rate , limiting throughput 8 sets/day 2. Unable to meet increased VOLVO demand 60 pcs/week, causing Volvo production 2 day 3. Unable to meet TAKT TIME < 3 days, Currently cycle time > 4 days, Objective(s) 1. Improve Product quality by 80%, reduce reject rate from 42% to <5% 2. Reduce Lead time by 50% (from 4 to 2 days) 3. Productivity by 50%, from 8-12pcs/day LEAN TRANSFORMATION RESULTS 1. Reduced quality reject rate from 30% down to 3% 2. Reduced total lead time from 4.5 down to < 2 days 3. Reduced total cycle time from 3Hrs to 0.7Hrs/pc 4. Reduced WIP from 33 pcs to 12pcs in < 2 weeks EAST (Exhaust After Treatment System)
- 6. JULIAN KALAC LEAN SIX SIGMA PROJECTS 13-Jan-2016 Page 6 of 13 6. PROGRESSIVE DIE STAMPING PRESS CAPITAL PROJECT PROBLEM: Demand increased by 30%, requiring 1Mil units/year Current capacity = 550,000 pcs/year , at peak season customer demands exceed machine capacity High labour cost/pc = $1.28/pc 2 critical labour intensive operations are BOTTLENECKS preventing additional capacity RE-Engineered Solution = Progressive Stamping Die 2 Operations @ 1 TIME 1 Band Saw 2 Forming with 3 setups
- 7. JULIAN KALAC LEAN SIX SIGMA PROJECTS 13-Jan-2016 Page 7 of 13 RESULTS • Increased capacity by over 1,000,000 units/year (92%) • Reduced labour cost by $0.59/pc • 1.26 Payback period, ROI= 77% • TOTAL ANNUAL SAVINGS AFTER PAYBACK= $990K/year
- 8. JULIAN KALAC LEAN SIX SIGMA PROJECTS 13-Jan-2016 Page 8 of 13 7. LEAN LOGISTICS MANUFACTURING (DPM) AND DISTRIBUTION (NT) 2013-2014 Streamlined a complex Canada wide Manufacturing-Supply Chain-Logistics replenishment operation, which reduced storage/transportation costs by $920K, inventory levels by $2.2Mil (from $3.4Mil to $1.2Mil). Total Operational savings= $3.1Mil Problem Statement: Transportation Logistics from DP Manufacturing to NT Distribution centres inefficient. Customer same day orders and replenishment being picked up from DP Manufacturing delivered to NT Distribution Centre, then reloaded onto an outbound carrier resulting in either late deliveries, lost shipments or delivered to wrong address, resulting in shortages 50%, high WIP levels and excessive transportation costs. Improvements: Implemented Lean Logistics using 1-step cross-docking distribution from DP to final destination, which eliminated shortages, reduced delivery time from 4 days to < 1 day Integrated Manufacturing-Supply Chain with Warehouse Management System which reduced total WIP inventory by $2Mil, eliminated 2 carriers, utilized same carrier for Inbound/Outbound Implemented Advanced shipping notice (ASN) which enabled Synchronized inbound delivery with outbound shipments, bar code tracking with shipment RFID chips from supplier NT DISTRIBUTION CENTERS DP PRE-PAID CUSTOMERS
- 9. JULIAN KALAC LEAN SIX SIGMA PROJECTS 13-Jan-2016 Page 9 of 13 8. BATCH MANUFACTURING CYCLE TIME REDUCTION Problem: 1. Low Suite utilization 11%, causing capacity constraints with other products 2. Batch cycle time = 5 days per batch, customer Takt Time= 4 days/batch Objective: Increase utilization and production capacity by 30% without additional capital RESULTS: increased Final Yield by 19%, increased suite utilization from 11% to 62%, and Reduced total batch processing time from 5 to 3.5 days/batch (42%) Total Operational savings = $1.4Mil/year Project completion time= 3.5 months
- 10. JULIAN KALAC LEAN SIX SIGMA PROJECTS 13-Jan-2016 Page 10 of 13 9. FCI AUTOMOTIVE – QS9001/ISO14000 NEW PROGRAM LAUNCH Successfully managed a $22M USD FORD/TRW new ABS/VSC program for 2005 FORD Windstar minivan, from Design to full PPAP launch on-time & within budget. Took over a complex FORD program in jeopardy of being lost, gained the trust and credibility of FORD/TRW Program managers and successfully PPAP launched the program on-time Successfully improved a previously strained customer relationship with honesty, integrity trust Developed a mandrel prototype concept for insert moulding 52 connector pins, 4 power blades, and 4 bushings for the Automatic Breaking systems ABS & Vehicle System Control VSC CONNECTORS Developed & managed all APQP & PPAP documentation including: Design reviews, PFMEA DVP&R, SPC, Control Plans, SOP, and production tooling design Developed automation specifications, RFQ, vendor selection, managed the design, build & installation of the custom full-automated assembly line Total budget for automation worth over $2.3M USD ABS & VCS Connector module
- 11. JULIAN KALAC LEAN SIX SIGMA PROJECTS 13-Jan-2016 Page 11 of 13 PROCESS OPTIMIZATION USING SIX SIGMA DESIGN OF EXPERIEMNTS TO REDUCE CYCLE TIME 10. DOE Injection Moulding Cycle Time And Process Control Optimization Problem Statement: Injection moulding tight tolerances and process control not established causing poor process capability <1 cpk and High defect rate ->11% Objective: Optimize process to reduce defect rate by 50%, and reduce cycle time using Design of Experiments using 2-taguchi method Results: 1. Defect rate reduced by 70% from 11% to < 2%, 2. reduced cycle time by 35% and 3. reduced material weight by 20% 4. Total savings = $530K in operational cost reductions
- 12. JULIAN KALAC LEAN SIX SIGMA PROJECTS 13-Jan-2016 Page 12 of 13 11. LARGE FORMAT OPERATIONAL TRANSFORMATION - Printing/Packaging - 2015 Problem Statement - • New Business unit -Large Format “LGF” department running at a loss for 2 years consecutively • Current capacity 72 shipped items/day, Customer demand =100 items/day • Currently Average lead time (LT)= 13 days , customer demand = 2-4 days • New $2Mil equipment underutilized Overall Equipment Efficiency (OEE) = 37% • Internal Quality Reject Rate = 42%, causing high rework, scrap rate = 33% Objective(s): Increase LGF capacity from 72 to > 100 items/day without additional labour/capital equipment Reduce lead time from 13 to < 3 days Improve Gross Margin from -$30k/PD to +1K/PD, PD= month Results: Increased capacity from 72 to 131 items/day –> (83%) Reduced lead time from 13 days to <1 day Implemented NEXT DAY delivery for all orders Increased Gross Margin from -$30K to +$35.6K/PD ($70K/month swing) $840K/year Transformed Large Format from cost centre into Profit centre and achieved
- 13. JULIAN KALAC LEAN SIX SIGMA PROJECTS 13-Jan-2016 Page 13 of 13 12.BLACK CLAWSON EXTRUSION LAMINATOR SAFEGUARDING PROBLEM STATEMENT: Used Laminator purchased by company without proper safeguarding and shut down by Ministry of Labour ordering a PSHR by a P.Eng OBJECTIVE: Design machine safeguarding to enable Laminator compliance with OHSA section 851 Industrial Establishments LAMINATOR BEFORE PSHR CRITICAL AREAS TO BE GUARDED