SlideShare a Scribd company logo

Integrating Six Sigma and Lean Manufacturing the Challenges & Benefits

A
Advent Design Corporation

This document discusses integrating Six Sigma and Lean manufacturing to lower costs and reduce lead times. It provides an overview of Six Sigma and Lean manufacturing approaches and how they can be combined. Six Sigma focuses on reducing process variation through statistical analysis while Lean aims to eliminate waste in the value stream. The document outlines some challenges with historical integration attempts and the different system models of Six Sigma and Lean. It also describes key aspects of each approach including goals, definitions, tools, and implementation structures. Combining the two is presented as providing benefits like increased customer satisfaction and profitability by addressing both flow-focused and problem-focused improvements.

1 of 72
Downloaded 38 times
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
Integrating Six Sigma and Lean Manufacturing The Challenges & Benefits Frank Garcia ADVENT DESIGN CORPORATION
SIX SIGMA or LEAN MANUFACTURING Need to lower costs & reduce lead time? • Material flow is poor • Error rate is high • Can’t deliver ontime • Equipment too slow
Six Sigma or Lean Manufacturing? LEAN MANUFACTURING: Reduce Lead Time by eliminating waste in the Value Stream Provides the Game Plan and Plays SIX SIGMA: Reduce process variation Provides the Play by Play Analysis and Instant Replay
Six Sigma or Lean Manufacturing? LEAN MANUFACTURING: Flow Focused Lean cannot bring a process under statistical control SIX SIGMA: Problem Focused Can not dramatically improve process speed or reduce invested capital NEED BOTH!
Integrating Six Sigma with Lean Manufacturing Increases customer satisfaction Improves profitability & competitive position Has historical integration problems Requires a different system model Requires implementation & sustaining plans
Lean Manufacturing System Goals are Highest quality Lowest cost Shortest lead time Achieved by eliminating waste in the value stream Industry benchmark: Toyota Production System (TPS) TPS is applied I.E. and common sense Principle: organization supports the value adder
Definition of Value -Added Value is added any time the product is physically changed towards what the customer is intending to purchase. Value is also added when a service is provided for which the customer is willing to pay (i.e. design, engineering, etc.). If we are not adding value, we are adding cost or waste. 90% of lead time is non-value added!
Value Stream The value stream is the set of all the specific actions required to bring a specific product (good or service) through the critical management tasks of any business: 1. Information Management 2. Transformation
The EIGHT Wastes Inventory (more than one piece flow) Overproduction (more or sooner than needed) Correction (inspection and rework) Material Movement Waiting Motion Non-Value Added Processing Underutilized People
Six Sigma System A defined management process and CTQ goal (3.4 ppm) 3 sigma is 66,807 ppm! Driven from the top Focused on Voice of the Customer A data analysis and problem solving methodology Strong focus on variation reduction Supported by highly trained problem solvers
Uncovering Quality’s Hidden Costs Traditional Traditional (Tip of the Iceberg) (Tip of the Iceberg) 5 to 8 % 15 to 20 % Warranty Scrap Rejects Rework Late Delivery Lost Engineering Change Orders Opportunities More Set-ups Long Cycle Times Expediting Costs Lost Sales Excess Inventory Excessive Material Orders/Planning Working Capital Allocations Additional Costs of Poor Quality
Six Sigma Variation Reduction Process Variation Should be Less Than Specs Variation Reduction is Cost Reduction
Six Sigma’s (σ) Focus: Reducing Variance “ You have heard us talk about Reducing span, the “evil” variance our the variance customers feel in our response provides to their requests for better delivery, service or control of financing.” the process. A process mean tells us how the process is performing while the variance gives us an indication of process control.
What is Six Sigma (σ) Quality? Population mean (μ) or average One (1) σ represents 68% of the population Two (2) σ represents 95% of the population Six (6) σ represents 99.999997% of With 6 σ Quality, approximately 3.4 items in a the population population of 1,000,000 items would be unacceptable.
Six Sigma System Improving Profitability A 1 Sigma Improvement Yields….. 20% margin improvement 12 to 18% increase in capacity 12% reduction in number of employees 10 to 30% reduction in capital Source: Six Sigma - Harry & Schroeder
Six Sigma Financial Impact Areas: The Savings Categories 1. Cost Reduction (including cost at standard and costs not included in standard cost) 2. Cost Avoidance (can be difficult to document) 3. Inventory Reduction 4. Revenue Enhancement 5. Receivables Reduction
Six Sigma System A culture characterized by….. Customer centricity: What do they value? Financial results Management engagement & involvement Resource commitment: 1 to 3% of staff full time Execution infrastructure: black & green belts, teams
Six Sigma Problem Solving Steps Process Breakthrough Define & Measure Validate Data Collected Strategy Characterization Analyze Vital Few Factors For Root Cause of Problem Improve Identify appropriate operating conditions Optimization Control Sustain - Insure Results to Bottom Line
The DMAIC Cycle Six Sigma In Action SDCA Measure & Plan-Do-Study-Act Define Teams Analyze Benchmark Analysis tools SDCA Management ID variability Commitment Employee Involvement Improve Design of Control Plan-Do-Study-Act Experiments SDCA = Standardize-Do-Check-Adjust
Six Sigma Tools Check Sheets: Checklists of what is to be accomplished,etc.. Scatter Diagrams: A graphical representation between two measurements (variables). Fishbone or Cause and Effect Diagrams: Provides a starting point for problem analysis. Problems are diagrammed into categories of Machinery, Material, Methods and Labor (Manpower). Pareto Charts: A method for organizing errors based on the number of errors created by a particular attribute (ex. Machine, Supplier, Product, Individual, etc.).
Six Sigma Tools Process Maps or Flowcharts: Graphical representation of a process or system showing process or product transformation. In other words, what is being done, by who and what choices are being made. Ideally process maps should include cycle times, defect information, etc. X-Y Matrix: A ranking method used to prioritize process inputs (X’s) to process outputs (Y’s). FMEA’s (Potential Failure Mode and Effects Analysis): A detailed document which identifies ways in which a process or product can fail to meet critical requirements.
Six Sigma Tools - Process Maps or Flowcharts What are the X’s (Input variables) at each process step? What are the Y’s (Output Variables) at each process step? Remember Y = f (x) Remember Valued Added versus Non-Value Added Remember Cycle Times and Defects
Traditional Six Sigma Implementation- Who is Involved Technical Trainers, Mentors: Black Belts Full-Time Commitment Project Leaders- Senior Management Full-Time Commitment Master Green Belts Champions and Leaders Black Belts Project Leaders- Provides direction, removes Part-Time obstacles, reviews progress Commitment
Six Sigma Information Flow
The Bad News: Six Sigma Program: Implementation Issues Some of the facts: 80% of Six Sigma Implementations fail. Traditional Six Sigma implementations have largely been attempted at large Fortune 500 Companies due to the large investment in people, training and overall support. Training costs alone for a “wave” of 25 people can cost $250,000 for this 4 to 6 month training period. Training costs and personnel requirements can overwhelm many smaller organizations.
Need for Six Sigma & Lean External - Satisfying Customers….. Quality, Warranty, and Cost Customers Require Six Sigma Customers Require Lean Manufacturing Competitors are implementing Lean & Six Sigma Staying in business
Need for Six Sigma & Lean Internal - Improving Profitability through….. Operational Cost Reduction Improve Productivity Reduce Scrap and Rework Reduce Inventory & WIP Engineering Design Cost Reduction Define-Measure-Analyze-Design-Verify (DMADV) Stabilize & Quantify Process Capability Input for Product and Design Process
Lean Six Sigma Model
You Can Apply Six Sigma Techniques to Complement Existing Lean Capabilities Lean Training & Implementation VSM Six Sigma Analysis, Lean Waste Process Problem Techniques Reduction variation Solving & Inventory Reduction Training & Control Supply Chain Management
Lean Six Sigma Implementation Historical Implementation Problems Only Six Sigma or Lean Implemented - big $ savings but money left on the table Separate Six Sigma & Lean initiatives competing for best resources Difficulty in sustaining the gain
Lean Six Sigma Implementation Some Solutions……. Need to implement in the correct order Policy deployment to align business objectives (Flow, Waste & Variation Reduction) Focus on shop floor results, not class room skills Experienced teachers & coaches Standardized work to institutionalize the gains
The Lean Six Sigma Strategy Lean 6σ is a CHANGE STRATEGY for accelerating improvements in processes, products, and services to improve a company’s performance leading to improved financial performance and competitiveness of the organization. Goals: Improved Customer Satisfaction Increased Profits Improved Process Capability by Reducing Variance Increased Market Share Support Continuous Improvement Sustained Gains for Completed Projects
Lean and the 6 σ Structure FULL TIME COMMITMENT Problem solver, Teacher, Mentor. Expert in use of the tools M.B.B Black Problem solver,Proficient with tools Belt Problem solver, assists Black Belt. 25-50% Yellow and Working Knowledge of tools Green Belt Functional 6Sigma Team Member. Familiar with tools Problem Solving Problem Solving Team Members LEAN Manufacturing Practices Waste reduction and Continuous Improvement Training Costs- up to $2,500 Week (excludes lodging, travel and salary)
Why Not Rent a Belt (Black, Yellow or Green) Pay for only What You Need to Solve Real Business Problems? Easier for Small Business to Justify Focused on Solving Companies’ Problems Joint Problem Solving and Knowledge/Skill Transfer Easier to Meet Customer Mandates to Use Lean Six Sigma Techniques Provides Evolutionary Approach to Lean/Six Sigma Implementation and Training
How Do We Use Lean Six Sigma Techniques Get Management commitment Assess the operation & understand the Process using a Value Stream Map (Product families & Production data) Identify lean improvements & kaizens without automation Implement lean improvements using VSM plan Identify processes requiring Six Sigma analysis Analyze, eliminate, and control variation Start the cycle again!
The Lean Six Sigma Cycle VSM Commitment & Recommended Set Up Assessment Solutions Layout Cells Continuous Visual Improvement Variation Reduction Implementation Information DO IT! Plan Systems
Understanding the Process: The 1st Step and Foundation of st Lean Six Sigma Y = f(X) Output(s) are a function Input(s) The Lean Six Sigma process attempts to control the outputs by controlling the inputs (those Critical to Quality or CTQ’s)
Value Stream Map An Assessment Tool The value stream map follows the production path from beginning to end and shows a visual representation of every process in the material and information flows Shows how the shop floor currently operates Foundation for the future state
Using the Value Stream Mapping Tool product family current state Understanding how the shop floor drawing currently operates. The foundation for the future state. future state Designing a lean flow drawing plan and implementation
Value Stream Map Concept Orders Production Orders Suppliers Customers Control Schedules I Process I Equipment Raw Cycle Finished Materials Times Goods Change Over Reliability Error Rate Lead Time File: VSM-A1
Value Stream Map (Current State) Orders Every 2 Weeks Production Control New Jersey Randomly Placed Andrea Aromatics Alanx Order as Needed Various Porcelain Orders (Various Sizes) (Scented Oils) (Shaped Stones) Customers (Round Stones) Average of 6,000 Stones per Day in Various Size Orders (8 to 20 case & 200 to 400 case range mainly) 30 Cans of Oil 59,000 Stones 50,000+ Stones Every 2 Weeks Every 2 Weeks Every 2 Months (via stringer) Bi- Weekly Daily Shipping Productio Orders n Daily Schedule Shipments Existing Work Cell Soak & Dry Packaging Labeling Cartoning Case Packing Shipping APAI Multiple Ameripack Manual Manual Automatic Batch Tanks Flow Packager I I I Stapler I I I up to 0 0 125 Cans of Oil 1 Operator 4290 1 Operator 1/2 Operator 1/2 Operator 90,504 1 Operator 250 20,640 Round Stones Stones Stones stones 49,000 Shaped Stones in WIP C/T = 25 - 65 min. C/T = 1 sec. C/T = 3 sec. C/T = 2 sec. C/T = 1 sec. C/O = 10 min. C/O = 5 min. C/O = 2 min. C/O = N/A C/O = N/A Rel. = 100% Rel. = 85% Rel. = 80% Rel. = 100% Rel. = 100% 11.6 Days 0.7 Days 15.1 days 27.4 Days Lead Time 65 minutes, 7 seconds 65 min. 7 seconds Value-Added Time
Value Stream Map (Future State) Orders Every Week New Jersey Randomly Placed Andrea Aromatics Alanx Monthly Order Production Control Various Porcelain Orders (Various Sizes) (Scented Oils) (Shaped Stones) Customers (Round Stones) Average of 6,000 Stones per Day in Various Size Orders (8 to 20 case & 200 to 400 case Bi-Weekly range mainly) 12 to 16 Cans 30,000 Stones 25,000 Stones Production of Oil Once a Once a Week Once a Month Schedule Week (via stringer) (large orders) Daily Shipping Orders Daily Shipments 4 Cases Existing Work Cell Soak & Dry Packaging Labeling Cartoning Case Packing Shipping APAI Multiple Ameripack Manual Manual Automatic Batch Tanks Flow Packager I I I Stapler I I up to 0 0 75 Cans of Oil 1 Operator 4290 1 Operator 1/2 Operator 1/2 Operator 30,000 1 Operator 250 40,000 Round Stones Stones Stones stones 25,000 Shaped Stones in a supermarket in WIP type arrangement C/T = 25 - 65 min. C/T = 1 sec. C/T = 3 sec. C/T = 2 sec. C/T = 1 sec. with stocking levels C/O = 10 min. C/O = 5 min. C/O = 2 min. C/O = N/A C/O = N/A by shape and scent Rel. = 100% Rel. = 85% Rel. = 80% Rel. = 100% Rel. = 100% Increase 10.8 Days 0.7 Days 5.0 days 16.5 Days Lead Time Reliability 65 minutes, 7 seconds 65 min. 7 seconds Value-Added Time
Questions to Ask About the Value Stream Is the step valuable? Is the step capable? Is the step available? Is the step adequate (capacity)? Is the step flexible?
Integrating Six Sigma and Lean Manufacturing the Challenges & Benefits
Lean Manufacturing Concepts & Techniques Flow: Setup Reduction, Cellular Manufacturing, Batch Size Reduction, Visual Workplace, Layout Pull: Kanban Systems, Supply Chain Management, Point of Use Perfection: Quality Systems including variation reduction, Training
Road Map to Lean Six Sigma Lean to improve flow and reduce inventory & lead time Six Sigma for Process Variation in Value Stream Value Stream Map (Current State) Stamping Orders With No Plating or Heat Treatment (Potential Future State Changes in Red) Projected requirements Phosphor Bronze Omega Precision Beryllium Copper Randomly Placed Brass (30%) Order as Needed Production Control Various (30%) Vista S oftw are S ystem Orders (Various Sizes) (40%) 10 Week LT Customers 6 Mos. LT 4 Weeks LT 6 Weeks Reroll In Stock- 1 Week Review Work Schedule with Formal Production Average of Suppliers 1 mm pcs per day Control in Various Sizes Orders (2 to 13) Single Point Every Week Every Week Ever y Week of Control Weekly Production Weekly Shipping Schedule Pressroom List Manager Daily Shipments Average order = 208,000 pcs 252,000 strokes Pre-Control for Roll Changes Combine? •Lot Control Improvement Stamping •Handling Reduction Degreasing Packing Shipping Drying 10 to 24 coils 11 Stamping 3 times /w eek Manual Presses I 6 Operators I 1 unit I 1 Operator I Shipper 2 Baskets - Strip 50 to 70 20 to 40 Bins 1 Basket - Pieces 2 Hours 1 Day Racks to Run: 200-600pcs/min C/T = 2 Hr Strips 12 Weeks 100 to 125 C/T = .003 min/pc. Max 1000/Basket C/T =10 hr Auto Coils Visual Status Min 200/Basket C/O = None Bagging C/O = 4.5 hrs. = 30 Min Pcs. Rel. = 80% Standard Time of Presses 25,000 Pcs/Basket for Setup Setup Available: 590 min/shift Layout is C/O = None Adjustment Time Rel. = 90% a Problem Rel. = 95% 16.75 Days Lead Time 10 Days Sankyo 2 Days Reduce 1 Day to 12 Weeks + coil lead time Coil Feeds Cycle Time per average order 1.5day(avg) 2.25 Days 3.75 Days Value Added Time
Low Productivity Electrical Device Assembly The Challenge in Two Steps Client wanted wave soldering and robotic pick and place Functional operational layout Reject rate 5 to 8% Extensive material staging No space Initially, 13 people in Aurora cell Low output: 300 units/day
Lean Six Sigma Techniques Used Process mapping Cellular Manufacturing & Layout Balance Cycle Times Between Work Stations Reduce Batch Size & parts staging Quality Data Collection & Analysis (Reduce Reject Rate)
Cellular Assembly Layout
WORKSTATION CYCLE TIME: 25sec., 1.25 min. Cell Changes REJECT PER 3 UNITS DATA 2 LED TEST SOLDER & CUT 4 5 6 7 ATTACH SAMPLES 8 9 BACK ASSEMBLY CONTACTS BUTTON & GLUE COVER, #1 ASSEMBLY BATTERY SWITCH/ STAKE PACK LED COLD STAKE & ASSEMBLY ATTACH 1 PLACEMENT TEST PCBs SOLDER LABEL STRAP & ATTACH STRAP STRAP INSERT TEST LED REJECT SWITCH PCBs SOLDER DATA ACTIVATOR & CUT 3 ASSIST REJECT DATA AFTER CHANGES WORKSTATION CYCLE TIME: 25sec., 1.25 min. PER 3 UNITS TEST 4 SAMPLES 1 2 3 5 6 ATTACH BACK ASSEMBLY CONTACTS BUTTON & GLUE PCBs from COVER, #1 ASSEMBLY BATTERY SWITCH/ supplier STAKE PACK COLD STAKE & ASSEMBLY ATTACH STRAP & TEST PCBs SOLDER LABEL STRAP ATTACH STRAP REJECT INSERT DATA SWITCH ACTIVATOR
Lean Six Sigma Changes Cold staking fixtures Powered screw drivers Light test & Soldering fixtures Quality data tracking via % defect control chart (p chart)
With Lean Six Sigma The Results Balanced cell at 24 sec per work station Two U-shaped cells 3 piece flow 1000 units/day per cell vs 300 6 people per cell vs 13 Faster identification of quality problems Operating at 5 to 6 sigma Better teamwork No backlog
Reducing WIP & Improving Quality Wire Extrusion & Finishing The Challenge Client wanted to reduce WIP by 50% Extrusion rejects (7%) Material flow problems Little data collection
Lean Six Sigma Techniques Used Value Stream Mapping Cellular Manufacturing & Layout Kanban Trigger Board 5S Quality Data Collection & Analysis (Reduce Reject Rate)
Reducing Lead Time & Improving Quality Steel Panel Fabrication The Challenge Client wanted to reduce lead time to less than one week Automated equipment had been installed but had problems Panel rejects & rework (5%) Material flow problems Few process controls or data collection
Value Stream Map (Current State) Blanket Annual Purchase Order with Daily Releases Production Control Randomly Placed (normally working Various Distributors Sheet Galvanized Sheet Galvanized Sheet Galvanized Sheet Galvanized Orders (normally 24 to 48 hours ahead (~ 24 for Smith Corp. & Steel (4’ by 8’ or cut) Steel (4’ by 8’ or cut) Steel (4’ by 8’ or cut) Steel (4’ by 8’ or cut) single unit orders) of ~ 6 for Jones Systems promised shipment) Average volume of 1000 systems per month in peak season. Customers are mainly distributors. There are a few dealers. Daily Daily Up to an average Daily Production Production of 130,000 lbs Shipping Daily Reports Reports daily in peak Schedule Shipments season In Straight Panel Dept. Shear Notch Specialty Punch Corner Punch Bend Stake & Label Add Z Brace Radius & Band Rack Shipping 1 Accurshear 1 Manual 4 Semi-Auto 3 Semi-Auto 1 Manual 1 Automated 1 Automated 1 Manual Table, Automated Notcher (S-23) Punches Punches Brake (R-7) Machine (R-8) Machine (ACR) 1 Jig-less Shear (P-3) & 1 Automated (S-1, S-2, & S-3) & 1 Automated Machine (R12), I Notcher (R-3) Brake (R-13) & 1 Jig Machine (R1) 2 to 5 days 1 Material 1 Operator 1/2 Operator 0 Operators 1 Operator 1/2 Operator 1/2 Operator 1/2 Operator 2 Operators 2 Operators depending Handler on pre-cut size C/T = 4 min. C/T = 2 min. C/T = 2 min. C/T = 2 min. C/T = 5 min. C/T = 2 min. C/T = 7 min. C/T = 8 min. C/T = N/A C/O = N/A C/O = 4 min C/O = N/A C/O = up to C/O = 30 to C/O = N/A C/O = N/A (average) C/O = N/A Rel. = 99% Rel. = 95% Rel. = 99% 30 min. 60 sec. Rel. = 99% Rel. = 98% to C/O = 2 to 30 Rel. = 100% Rel. = 99% Rel. = 90% 99% min. Rel. = 80% 2 to 5 Working Days, to 100% Lead Time 2 to 5 days 32 minutes, 4 min. 2 min. 2 min. 2 min. 5 min. 2 min. 7 min. 8 min. Value-Added Time
Lean & Six Sigma Techniques Used Value Stream Mapping Process flow diagrams Setup time Analysis Quality Data Collection & Analysis (Reduce Reject Rate & Variability)
INITIAL IMPROVEMENT CONCEPTS Improve reliability and changeover capability of R1 and R12 machines. Reduce panel reject rate. Radius & Band Work to 1 to 2 days lead time 1 Manual Table, Rack 1 Jig-less Machine (R12), & 1 Jig Machine 1 Material (R1) Handler 2 Operators C/T = 8 min. C/T = N/A (average) C/O = N/A C/O = 2 to 30 Rel. = 100% min. Reject rate = 5% Rel. = 80% to 100% 2 to 5 Working Days, 8 min. Lead Time
6 Foot Long Custom Radius Panel Fabrication Trumpf Area Straight Panel Dept. Notch Panel & Punch Bend Add Z Brace(s) Material Raw (Trumpf & Stake (if required) Material Stock Machine) 14 Ga. Galvanized Steel (pre-cut 53-15/16” by 6’3-15/16” sheets) Radius & Band Label Rack Ship (R12 - Jigless Machine) WIP Stock 16 Different Panels with Various Cutouts Custom Panel Dept. Band Shear Material Raw & Cut Material Stock 11 Ga. Galvanized Steel Partially finished panels are stocked in (4’ by 8’ standard sheets) sixteen different configurations. Panels are finished to order. Work is done in three different areas as noted.
UNDERSTANDING ROOT CAUSES of R12 PROBLEMS CAUSE AND EFFECT DIAGRAM Red = Most Important Causes SET UP VALUES CHANGE NO SPECS OPERATORS MEASUREMENT RADIUS TEMPLATE MAINTENANCE ACCURACY PANEL CHANGES SQUARENESS SETTINGS DIFFERENT SETUP PROCEDURES NO DIMENSIONAL SPECS OR TOLERANCES DIFFERENT OPEATOR MEASURES USED ON OPERATOR R1 & R12 PREFERENCE JUDGEMENT NO TRUST RADIUS ANGLES NO SPECS DON'T MEET SEGMENT LENGTH CURVATURE TEMPLATE REQUIREMENTS AT MOUNTING SETUP WRONG DIGITAL READOUT (4' & 6' RADIUS PANEL WIDTH VARIES USELESS PANELS) POOR TRANSDUCER BAD 3 SUPPLIERS SHEET DIMENSIONS USE OF AIR vs. VARY SELECTION BEARINGS HYDRAULICS BANDS HAVE ON LOWER CAMBER FORMING INDEXES VARY TOOL GALVINIZED COATING INDEXES VARY CRUDE INDEX INACCURATE DIFFERENT ON POOR MAINT SYSTEM DESIGN CUTTING PANELS LOCATION PANEL OF SPECIALTY PUNCHES NOTCH O.D.SPACING VARIES ON PANEL SURFACE FINISH RADIUS VARIES .09 IN BACKING SHOE VARIES SIDE TO SIDE DIFFERENT ADJ.USTMENT. STEEL PROPERTIES PANEL NOTCH POSITION VARIES NO SPECS 3 SUPPLIERS AIR CYLINDER PANELS CATCH AT OPPOSING LAST 2 BENDS HYDRAULIC IN HEAD AIR PRESSURE LOW WIDTH OF STEEL BETWEEN ASSEMBLY NOTCHES VARIES 3.75 to 4.0 in. YIELD STRENGTH VARIES CONVEYOR NOT ACROSS RADIUS MAINTENANCE EQUIPMENT ADJUSTED PLATE THICKNESS PUNCH NO SPECS VARIES HOT VS COLD ROLL LOCATION PANEL NOT VARIES SQUARE. wIDTH 3 SUPPLIERS TOO LARGE NO SPECS DIFFERENT EQUIPMENT USED MATERIAL COATING STRAIGHT PANEL (PANELS, STEEL) VARIES 3 SUPPLIERS SPECIALTY PUNCH
Process Improvements Separating Process & Machine Issues Common setup procedure Replace measurement gages Established process capability Implemented process controls for panel dimensions Identified realtime data requirements Completed identified maintenance actions Implemented PM program
Why Lean Automation? “After implementing lean improvements such as cellular manufacturing and setup reduction, selective automation can add value and reduce human variability.” Richard Schonberger, June 2002
New Radius Bending Machine R13 • Automated band cutting • Servo driven adjustments from panel bar codes • Online radius measurement and tracking
R13 Capabilities After Lean Six Sigma Operates as a cell Runs two product families Changeover in less than 5 sec. within and between product families Cycle time reduced from 5 min. to 1.8 min. Realtime auto check of each panel with data collection Operating at 6 sigma
Lean Six Sigma in the Fast Lane! As lead time decreases………….. the need for realtime data increases!
Automation Provides Realtime Data to Control Variation for Six Sigma Enhances Define-Measure- Analyze-Improve-Control methodology (DMAIC) Online measurement of Process Control process parameters Direct data input into control charts Provide realtime controls as control limits are understood
R13 Process Controls & System Status Realtime Data Collection for Six Sigma Analysis Diagnostics for Rapid Identification of Problems
Realtime Data From R13 Target Top Bot. Bend Bend Bend Bend Panel Panel Index Chord Chord Chord Delta Top Angle Angle Factor Factor Radius Length Cycle Count Height Height Height / Bot. Top Dev. Bot. Dev. Offset Factor Top Bot. (Feet) (Inches) Time Template Template V2022 V2030 V2046 V2066 V2032 V2050 V2070 V1610 V1612 V1614 V1616 V1706 V1710 V2014 Remarks Dev. Top Dev. Bot. 31 14.051 14.089 14.118 0.029 0.039 0.067 0.000 1.325 0.797 0.921 4.000 75.375 131.2 Log Data 1 14.051 14.593 14.898 0.305 0.543 0.848 0.000 1.325 0.795 0.951 4.000 75.375 139.5 formula 2 14.051 14.089 13.947 0.142 0.039 -0.104 0.000 1.325 0.781 0.880 4.000 75.375 132.9 general, using values from 3'R 3 14.051 14.008 13.748 0.259 -0.043 -0.302 0.000 1.325 0.781 0.880 4.000 75.375 131.7 4 14.051 14.014 13.803 0.211 -0.036 -0.248 0.000 1.325 0.781 0.880 4.000 75.375 131.6 5 14.051 13.960 13.652 0.307 -0.091 -0.398 0.000 1.325 0.781 0.885 4.000 75.375 132.4 6 14.051 14.055 13.844 0.211 0.005 -0.207 0.000 1.325 0.781 0.900 4.000 75.375 132.0 7 14.051 13.824 13.817 0.007 -0.227 -0.234 0.000 1.325 0.781 0.905 4.000 75.375 132.3 8 14.051 13.796 13.824 0.027 -0.254 -0.227 0.000 1.325 0.781 0.910 4.000 75.375 132.0 9 14.051 13.926 13.974 0.048 -0.125 -0.077 0.000 1.325 0.790 0.920 4.000 75.375 131.6 10 14.051 14.001 13.967 0.033 -0.050 -0.083 0.000 1.325 0.795 0.920 4.000 75.375 132.3 11 14.051 13.980 13.967 0.013 -0.070 -0.083 0.000 1.325 0.795 0.920 4.000 75.375 131.1 12 14.051 14.014 14.063 0.049 -0.036 0.013 0.000 1.325 0.795 0.920 4.000 75.375 131.3 13 14.051 13.980 13.960 0.020 -0.070 -0.090 0.000 1.325 0.795 0.920 4.000 75.375 130.9 14 14.051 14.137 14.214 0.077 0.086 0.163 0.000 1.325 0.800 0.925 4.000 75.375 132.6 15 14.051 14.117 14.173 0.056 0.066 0.122 0.000 1.325 0.800 0.925 4.000 75.375 129.2 16 14.051 14.137 14.152 0.015 0.086 0.102 0.000 1.325 0.800 0.925 4.000 75.375 131.0 17 14.051 14.103 14.118 0.015 0.052 0.067 0.000 1.325 0.798 0.922 4.000 75.375 133.0 18 14.051 14.089 14.097 0.008 0.039 0.047 0.000 1.325 0.798 0.922 4.000 75.375 131.4 19 14.051 14.178 14.104 0.074 0.127 0.054 0.000 1.325 0.798 0.922 4.000 75.375 131.0 20 14.051 14.144 14.173 0.029 0.093 0.122 0.000 1.325 0.797 0.921 4.000 75.375 132.6 21 14.051 14.130 14.104 0.026 0.079 0.054 0.000 1.325 0.797 0.921 4.000 75.375 131.0 22 14.051 14.076 14.097 0.022 0.025 0.047 0.000 1.325 0.797 0.921 4.000 75.375 130.9 23 14.051 14.123 14.070 0.053 0.073 0.019 0.000 1.325 0.797 0.921 4.000 75.375 3.9 24 14.051 14.069 14.043 0.026 0.018 -0.008 0.000 1.325 0.797 0.921 4.000 75.375 136.5 25 14.051 14.089 14.070 0.019 0.039 0.019 0.000 1.325 0.797 0.921 4.000 75.375 0.0 26 14.051 14.089 14.104 0.015 0.039 0.054 0.000 1.325 0.797 0.921 4.000 75.375 131.6 bands from stock, COE belt broken 27 14.051 14.096 14.022 0.074 0.045 -0.029 0.000 1.325 0.797 0.921 4.000 75.375 136.9 28 14.051 14.089 14.097 0.008 0.039 0.047 0.000 1.325 0.797 0.921 4.000 75.375 131.3 29 14.051 14.082 14.111 0.029 0.032 0.060 0.000 1.325 0.797 0.921 4.000 75.375 131.2 30 14.051 14.117 14.152 0.036 0.066 0.102 0.000 1.325 0.797 0.921 4.000 75.375 131.3 31 14.051 14.089 14.118 0.029 0.039 0.067 0.000 1.325 0.797 0.921 4.000 75.375 131.2
How Do We Use Lean Six Sigma Techniques Get Management commitment Assess the operation using a Value Stream Map (Product families & Production data) Identify lean improvements & kaizens without automation Implement lean improvements using VSM plan Identify processes requiring Six Sigma analysis Analyze, eliminate, and control variation Start the cycle again!
Lean Six Sigma Methodology that maximizes shareholder value by achieving the fastest rate of improvement in….. Customer satisfaction Operating costs Process speed(lead time) Inventory & invested capital Quality Operating flexibility
Contact Information Advent Design Corporation Canal Street and Jefferson Ave. Bristol, PA 19007 www.adventdesign.com 800-959-0310 Frank Garcia, Director Planning & Producttvity frank.garcia@adventdesign.com
Bill Chesterson CEO Automation & Product Design Advent Design 215 781 0500 Ext: 203 Corporation bill.chesterson@adventdesign.com 925 Canal Street Tom Lawton President Bristol PA, 19007 Contract Manufacturing 215 781 0500 Ext: 202 (P) 215 781 0500 (F) 215 781 0508 tom.lawton@adventdesign.com www.adventdesign.com Frank Garcia Director Planning & Productivity 215 781 0500 Ext: 207 frank.garcia@adventdesign.com

More Related Content

PDF
Integrating Lean Manufacturingand Six Sigma The Challengesand Benefits Garcia...
Clinci Lucian
 
PPTX
Using Six Sigma to Drive Service Desk Improvements
kirkholmes11
 
PPT
Summary of Lean Six Sigma
learnsigma
 
PPT
Digital Six Sigma vs Directed Innovation
Maria Thompson
 
PPT
Yellow belt training 68 s
Rachit Gaur
 
PDF
Lean Six Sigma 101
shailsood
 
PPTX
Implementing Lean Six Sigma for IT
prashanthi_ks
 
PPT
Six sigma orntn
Nimshi_sharma
 
Integrating Lean Manufacturingand Six Sigma The Challengesand Benefits Garcia...
Clinci Lucian
 
Using Six Sigma to Drive Service Desk Improvements
kirkholmes11
 
Summary of Lean Six Sigma
learnsigma
 
Digital Six Sigma vs Directed Innovation
Maria Thompson
 
Yellow belt training 68 s
Rachit Gaur
 
Lean Six Sigma 101
shailsood
 
Implementing Lean Six Sigma for IT
prashanthi_ks
 
Six sigma orntn
Nimshi_sharma
 

What's hot (20)

PPTX
Lean Six Sigma for companies
Imran Abbasi
 
PDF
Business Improvement Overview
Dr. Filiep Samyn
 
PDF
Value Stream Mapping - Strategy Before Tactics
TKMG, Inc.
 
PPT
Digital Six Sigma integration with Directed Innovation for Generation of High...
Maria Thompson
 
PDF
Lean Six Sigma Project Management Oct11th2010[ (1)
Arunima Thakur
 
PDF
Why Agile?
Daniel van den Hoven
 
PDF
Lean Six Sigma Accelerating Cost Transformation SSCX Event Slides (2010)
guest48fa5f
 
PPTX
Improvement tools for public libraries
Sarah Wilkie
 
PDF
Suhdutsing Consulting Services V1.1
xty2000
 
PDF
Six Sigma Methodologies and its Application in Manufacturing Firms
Dr. Amarjeet Singh
 
PDF
Equable Lean Six Sigma Boe English Presentation
franckstrub
 
PPTX
Critial Process Presentation
Herbert_Drayton
 
PDF
Ebsl Technologies Six (6) Sigma
Publicly traded global multi-billion services company
 
PDF
Introduction To Solleva Group
evanslyke
 
PPT
Six Sigma
Vikram Dahiya
 
PPT
Six sigma overview
Ritika
 
PDF
Are you geared for Outsourcing Governance?
Digite Inc
 
PDF
Flevy.com - Six Sigma Basics
David Tracy
 
PDF
Lean KaiKaiku
Robert_
 
PDF
MOF 4 Overviewv - ITSM Academy Webinar
ITSM Academy, Inc.
 
Lean Six Sigma for companies
Imran Abbasi
 
Business Improvement Overview
Dr. Filiep Samyn
 
Value Stream Mapping - Strategy Before Tactics
TKMG, Inc.
 
Digital Six Sigma integration with Directed Innovation for Generation of High...
Maria Thompson
 
Lean Six Sigma Project Management Oct11th2010[ (1)
Arunima Thakur
 
Why Agile?
Daniel van den Hoven
 
Lean Six Sigma Accelerating Cost Transformation SSCX Event Slides (2010)
guest48fa5f
 
Improvement tools for public libraries
Sarah Wilkie
 
Suhdutsing Consulting Services V1.1
xty2000
 
Six Sigma Methodologies and its Application in Manufacturing Firms
Dr. Amarjeet Singh
 
Equable Lean Six Sigma Boe English Presentation
franckstrub
 
Critial Process Presentation
Herbert_Drayton
 
Ebsl Technologies Six (6) Sigma
Publicly traded global multi-billion services company
 
Introduction To Solleva Group
evanslyke
 
Six Sigma
Vikram Dahiya
 
Six sigma overview
Ritika
 
Are you geared for Outsourcing Governance?
Digite Inc
 
Flevy.com - Six Sigma Basics
David Tracy
 
Lean KaiKaiku
Robert_
 
MOF 4 Overviewv - ITSM Academy Webinar
ITSM Academy, Inc.
 
Ad

Similar to Integrating Six Sigma and Lean Manufacturing the Challenges & Benefits (20)

PDF
Lean sixsigma
Sherko32
 
PPS
6 sigma
Imran Ahmed Shaikh
 
PPT
QM-030-Six Sigma vs Design for Six Sigma
handbook
 
PPT
00 Vital Links Lean Six Sigma Change Acceleration 38 Pgs
freelean
 
PPT
Six Sigma For Managers
Yodhia Antariksa
 
PPT
Lean And Six Sigma
Yudha Satya Perdana
 
PPT
Total quality parameters - new ventures
Mayank Singh
 
PPT
Kash Masuria Whats Six Simga Presentation
guestd0440a
 
PPT
yellow belt training
Nishant Narendra
 
PPT
U20
greg_eisenbach
 
PPT
Basic overview six sigma
Khushmeet Khushi
 
PDF
Six sigma introduction
Md Khairul Shaleh Md Asari
 
PPT
Six sigma training
Jitesh Gaurav
 
PPT
Six sigma training
Jitesh Gaurav
 
PDF
Six Sigma Presentation
CA Aditya Singhal
 
PPT
Six sigma
MD SALMAN ANJUM
 
PPT
Introduction to Six Sigma
Vijay Rasam
 
PPTX
VTU Syllabus, MBA TQM, Module 8
Galgotias University
 
PPTX
Introduction to Six Sigma.pptx
AshweeniTiwari
 
PPT
Six Sigma For Managers 185
Anjoum .
 
Lean sixsigma
Sherko32
 
6 sigma
Imran Ahmed Shaikh
 
QM-030-Six Sigma vs Design for Six Sigma
handbook
 
00 Vital Links Lean Six Sigma Change Acceleration 38 Pgs
freelean
 
Six Sigma For Managers
Yodhia Antariksa
 
Lean And Six Sigma
Yudha Satya Perdana
 
Total quality parameters - new ventures
Mayank Singh
 
Kash Masuria Whats Six Simga Presentation
guestd0440a
 
yellow belt training
Nishant Narendra
 
U20
greg_eisenbach
 
Basic overview six sigma
Khushmeet Khushi
 
Six sigma introduction
Md Khairul Shaleh Md Asari
 
Six sigma training
Jitesh Gaurav
 
Six sigma training
Jitesh Gaurav
 
Six Sigma Presentation
CA Aditya Singhal
 
Six sigma
MD SALMAN ANJUM
 
Introduction to Six Sigma
Vijay Rasam
 
VTU Syllabus, MBA TQM, Module 8
Galgotias University
 
Introduction to Six Sigma.pptx
AshweeniTiwari
 
Six Sigma For Managers 185
Anjoum .
 
Ad

More from Advent Design Corporation (10)

PDF
Designing Products for Cellular Assembly
Advent Design Corporation
 
PDF
Speed to Market through Program Management
Advent Design Corporation
 
PDF
Using Value Stream Mapping As a Strategic Planning & Implementation Tool
Advent Design Corporation
 
PDF
Implementing Automation After Making Lean Improvements
Advent Design Corporation
 
PDF
Integrating Six Sigma and Lean Manufacturing the Challenges & Benefits
Advent Design Corporation
 
PDF
Lean Manufacturing Brings Products Back from China
Advent Design Corporation
 
PDF
Applying Lean Concepts in a Warehouse Operation
Advent Design Corporation
 
PDF
The Role of Process Development in Automation Presentation
Advent Design Corporation
 
PDF
Integrated Vision System & Robot Streamline Production
Advent Design Corporation
 
PDF
Ami meter-certification-issues-method
Advent Design Corporation
 
Designing Products for Cellular Assembly
Advent Design Corporation
 
Speed to Market through Program Management
Advent Design Corporation
 
Using Value Stream Mapping As a Strategic Planning & Implementation Tool
Advent Design Corporation
 
Implementing Automation After Making Lean Improvements
Advent Design Corporation
 
Integrating Six Sigma and Lean Manufacturing the Challenges & Benefits
Advent Design Corporation
 
Lean Manufacturing Brings Products Back from China
Advent Design Corporation
 
Applying Lean Concepts in a Warehouse Operation
Advent Design Corporation
 
The Role of Process Development in Automation Presentation
Advent Design Corporation
 
Integrated Vision System & Robot Streamline Production
Advent Design Corporation
 
Ami meter-certification-issues-method
Advent Design Corporation
 

Integrating Six Sigma and Lean Manufacturing the Challenges & Benefits

  • 1. Integrating Six Sigma and Lean Manufacturing The Challenges & Benefits Frank Garcia ADVENT DESIGN CORPORATION
  • 2. SIX SIGMA or LEAN MANUFACTURING Need to lower costs & reduce lead time? • Material flow is poor • Error rate is high • Can’t deliver ontime • Equipment too slow
  • 3. Six Sigma or Lean Manufacturing? LEAN MANUFACTURING: Reduce Lead Time by eliminating waste in the Value Stream Provides the Game Plan and Plays SIX SIGMA: Reduce process variation Provides the Play by Play Analysis and Instant Replay
  • 4. Six Sigma or Lean Manufacturing? LEAN MANUFACTURING: Flow Focused Lean cannot bring a process under statistical control SIX SIGMA: Problem Focused Can not dramatically improve process speed or reduce invested capital NEED BOTH!
  • 5. Integrating Six Sigma with Lean Manufacturing Increases customer satisfaction Improves profitability & competitive position Has historical integration problems Requires a different system model Requires implementation & sustaining plans
  • 6. Lean Manufacturing System Goals are Highest quality Lowest cost Shortest lead time Achieved by eliminating waste in the value stream Industry benchmark: Toyota Production System (TPS) TPS is applied I.E. and common sense Principle: organization supports the value adder
  • 7. Definition of Value -Added Value is added any time the product is physically changed towards what the customer is intending to purchase. Value is also added when a service is provided for which the customer is willing to pay (i.e. design, engineering, etc.). If we are not adding value, we are adding cost or waste. 90% of lead time is non-value added!
  • 8. Value Stream The value stream is the set of all the specific actions required to bring a specific product (good or service) through the critical management tasks of any business: 1. Information Management 2. Transformation
  • 9. The EIGHT Wastes Inventory (more than one piece flow) Overproduction (more or sooner than needed) Correction (inspection and rework) Material Movement Waiting Motion Non-Value Added Processing Underutilized People
  • 10. Six Sigma System A defined management process and CTQ goal (3.4 ppm) 3 sigma is 66,807 ppm! Driven from the top Focused on Voice of the Customer A data analysis and problem solving methodology Strong focus on variation reduction Supported by highly trained problem solvers
  • 11. Uncovering Quality’s Hidden Costs Traditional Traditional (Tip of the Iceberg) (Tip of the Iceberg) 5 to 8 % 15 to 20 % Warranty Scrap Rejects Rework Late Delivery Lost Engineering Change Orders Opportunities More Set-ups Long Cycle Times Expediting Costs Lost Sales Excess Inventory Excessive Material Orders/Planning Working Capital Allocations Additional Costs of Poor Quality
  • 12. Six Sigma Variation Reduction Process Variation Should be Less Than Specs Variation Reduction is Cost Reduction
  • 13. Six Sigma’s (σ) Focus: Reducing Variance “ You have heard us talk about Reducing span, the “evil” variance our the variance customers feel in our response provides to their requests for better delivery, service or control of financing.” the process. A process mean tells us how the process is performing while the variance gives us an indication of process control.
  • 14. What is Six Sigma (σ) Quality? Population mean (μ) or average One (1) σ represents 68% of the population Two (2) σ represents 95% of the population Six (6) σ represents 99.999997% of With 6 σ Quality, approximately 3.4 items in a the population population of 1,000,000 items would be unacceptable.
  • 15. Six Sigma System Improving Profitability A 1 Sigma Improvement Yields….. 20% margin improvement 12 to 18% increase in capacity 12% reduction in number of employees 10 to 30% reduction in capital Source: Six Sigma - Harry & Schroeder
  • 16. Six Sigma Financial Impact Areas: The Savings Categories 1. Cost Reduction (including cost at standard and costs not included in standard cost) 2. Cost Avoidance (can be difficult to document) 3. Inventory Reduction 4. Revenue Enhancement 5. Receivables Reduction
  • 17. Six Sigma System A culture characterized by….. Customer centricity: What do they value? Financial results Management engagement & involvement Resource commitment: 1 to 3% of staff full time Execution infrastructure: black & green belts, teams
  • 18. Six Sigma Problem Solving Steps Process Breakthrough Define & Measure Validate Data Collected Strategy Characterization Analyze Vital Few Factors For Root Cause of Problem Improve Identify appropriate operating conditions Optimization Control Sustain - Insure Results to Bottom Line
  • 19. The DMAIC Cycle Six Sigma In Action SDCA Measure & Plan-Do-Study-Act Define Teams Analyze Benchmark Analysis tools SDCA Management ID variability Commitment Employee Involvement Improve Design of Control Plan-Do-Study-Act Experiments SDCA = Standardize-Do-Check-Adjust
  • 20. Six Sigma Tools Check Sheets: Checklists of what is to be accomplished,etc.. Scatter Diagrams: A graphical representation between two measurements (variables). Fishbone or Cause and Effect Diagrams: Provides a starting point for problem analysis. Problems are diagrammed into categories of Machinery, Material, Methods and Labor (Manpower). Pareto Charts: A method for organizing errors based on the number of errors created by a particular attribute (ex. Machine, Supplier, Product, Individual, etc.).
  • 21. Six Sigma Tools Process Maps or Flowcharts: Graphical representation of a process or system showing process or product transformation. In other words, what is being done, by who and what choices are being made. Ideally process maps should include cycle times, defect information, etc. X-Y Matrix: A ranking method used to prioritize process inputs (X’s) to process outputs (Y’s). FMEA’s (Potential Failure Mode and Effects Analysis): A detailed document which identifies ways in which a process or product can fail to meet critical requirements.
  • 22. Six Sigma Tools - Process Maps or Flowcharts What are the X’s (Input variables) at each process step? What are the Y’s (Output Variables) at each process step? Remember Y = f (x) Remember Valued Added versus Non-Value Added Remember Cycle Times and Defects
  • 23. Traditional Six Sigma Implementation- Who is Involved Technical Trainers, Mentors: Black Belts Full-Time Commitment Project Leaders- Senior Management Full-Time Commitment Master Green Belts Champions and Leaders Black Belts Project Leaders- Provides direction, removes Part-Time obstacles, reviews progress Commitment
  • 25. The Bad News: Six Sigma Program: Implementation Issues Some of the facts: 80% of Six Sigma Implementations fail. Traditional Six Sigma implementations have largely been attempted at large Fortune 500 Companies due to the large investment in people, training and overall support. Training costs alone for a “wave” of 25 people can cost $250,000 for this 4 to 6 month training period. Training costs and personnel requirements can overwhelm many smaller organizations.
  • 26. Need for Six Sigma & Lean External - Satisfying Customers….. Quality, Warranty, and Cost Customers Require Six Sigma Customers Require Lean Manufacturing Competitors are implementing Lean & Six Sigma Staying in business
  • 27. Need for Six Sigma & Lean Internal - Improving Profitability through….. Operational Cost Reduction Improve Productivity Reduce Scrap and Rework Reduce Inventory & WIP Engineering Design Cost Reduction Define-Measure-Analyze-Design-Verify (DMADV) Stabilize & Quantify Process Capability Input for Product and Design Process
  • 28. Lean Six Sigma Model
  • 29. You Can Apply Six Sigma Techniques to Complement Existing Lean Capabilities Lean Training & Implementation VSM Six Sigma Analysis, Lean Waste Process Problem Techniques Reduction variation Solving & Inventory Reduction Training & Control Supply Chain Management
  • 30. Lean Six Sigma Implementation Historical Implementation Problems Only Six Sigma or Lean Implemented - big $ savings but money left on the table Separate Six Sigma & Lean initiatives competing for best resources Difficulty in sustaining the gain
  • 31. Lean Six Sigma Implementation Some Solutions……. Need to implement in the correct order Policy deployment to align business objectives (Flow, Waste & Variation Reduction) Focus on shop floor results, not class room skills Experienced teachers & coaches Standardized work to institutionalize the gains
  • 32. The Lean Six Sigma Strategy Lean 6σ is a CHANGE STRATEGY for accelerating improvements in processes, products, and services to improve a company’s performance leading to improved financial performance and competitiveness of the organization. Goals: Improved Customer Satisfaction Increased Profits Improved Process Capability by Reducing Variance Increased Market Share Support Continuous Improvement Sustained Gains for Completed Projects
  • 33. Lean and the 6 σ Structure FULL TIME COMMITMENT Problem solver, Teacher, Mentor. Expert in use of the tools M.B.B Black Problem solver,Proficient with tools Belt Problem solver, assists Black Belt. 25-50% Yellow and Working Knowledge of tools Green Belt Functional 6Sigma Team Member. Familiar with tools Problem Solving Problem Solving Team Members LEAN Manufacturing Practices Waste reduction and Continuous Improvement Training Costs- up to $2,500 Week (excludes lodging, travel and salary)
  • 34. Why Not Rent a Belt (Black, Yellow or Green) Pay for only What You Need to Solve Real Business Problems? Easier for Small Business to Justify Focused on Solving Companies’ Problems Joint Problem Solving and Knowledge/Skill Transfer Easier to Meet Customer Mandates to Use Lean Six Sigma Techniques Provides Evolutionary Approach to Lean/Six Sigma Implementation and Training
  • 35. How Do We Use Lean Six Sigma Techniques Get Management commitment Assess the operation & understand the Process using a Value Stream Map (Product families & Production data) Identify lean improvements & kaizens without automation Implement lean improvements using VSM plan Identify processes requiring Six Sigma analysis Analyze, eliminate, and control variation Start the cycle again!
  • 36. The Lean Six Sigma Cycle VSM Commitment & Recommended Set Up Assessment Solutions Layout Cells Continuous Visual Improvement Variation Reduction Implementation Information DO IT! Plan Systems
  • 37. Understanding the Process: The 1st Step and Foundation of st Lean Six Sigma Y = f(X) Output(s) are a function Input(s) The Lean Six Sigma process attempts to control the outputs by controlling the inputs (those Critical to Quality or CTQ’s)
  • 38. Value Stream Map An Assessment Tool The value stream map follows the production path from beginning to end and shows a visual representation of every process in the material and information flows Shows how the shop floor currently operates Foundation for the future state
  • 39. Using the Value Stream Mapping Tool product family current state Understanding how the shop floor drawing currently operates. The foundation for the future state. future state Designing a lean flow drawing plan and implementation
  • 40. Value Stream Map Concept Orders Production Orders Suppliers Customers Control Schedules I Process I Equipment Raw Cycle Finished Materials Times Goods Change Over Reliability Error Rate Lead Time File: VSM-A1
  • 41. Value Stream Map (Current State) Orders Every 2 Weeks Production Control New Jersey Randomly Placed Andrea Aromatics Alanx Order as Needed Various Porcelain Orders (Various Sizes) (Scented Oils) (Shaped Stones) Customers (Round Stones) Average of 6,000 Stones per Day in Various Size Orders (8 to 20 case & 200 to 400 case range mainly) 30 Cans of Oil 59,000 Stones 50,000+ Stones Every 2 Weeks Every 2 Weeks Every 2 Months (via stringer) Bi- Weekly Daily Shipping Productio Orders n Daily Schedule Shipments Existing Work Cell Soak & Dry Packaging Labeling Cartoning Case Packing Shipping APAI Multiple Ameripack Manual Manual Automatic Batch Tanks Flow Packager I I I Stapler I I I up to 0 0 125 Cans of Oil 1 Operator 4290 1 Operator 1/2 Operator 1/2 Operator 90,504 1 Operator 250 20,640 Round Stones Stones Stones stones 49,000 Shaped Stones in WIP C/T = 25 - 65 min. C/T = 1 sec. C/T = 3 sec. C/T = 2 sec. C/T = 1 sec. C/O = 10 min. C/O = 5 min. C/O = 2 min. C/O = N/A C/O = N/A Rel. = 100% Rel. = 85% Rel. = 80% Rel. = 100% Rel. = 100% 11.6 Days 0.7 Days 15.1 days 27.4 Days Lead Time 65 minutes, 7 seconds 65 min. 7 seconds Value-Added Time
  • 42. Value Stream Map (Future State) Orders Every Week New Jersey Randomly Placed Andrea Aromatics Alanx Monthly Order Production Control Various Porcelain Orders (Various Sizes) (Scented Oils) (Shaped Stones) Customers (Round Stones) Average of 6,000 Stones per Day in Various Size Orders (8 to 20 case & 200 to 400 case Bi-Weekly range mainly) 12 to 16 Cans 30,000 Stones 25,000 Stones Production of Oil Once a Once a Week Once a Month Schedule Week (via stringer) (large orders) Daily Shipping Orders Daily Shipments 4 Cases Existing Work Cell Soak & Dry Packaging Labeling Cartoning Case Packing Shipping APAI Multiple Ameripack Manual Manual Automatic Batch Tanks Flow Packager I I I Stapler I I up to 0 0 75 Cans of Oil 1 Operator 4290 1 Operator 1/2 Operator 1/2 Operator 30,000 1 Operator 250 40,000 Round Stones Stones Stones stones 25,000 Shaped Stones in a supermarket in WIP type arrangement C/T = 25 - 65 min. C/T = 1 sec. C/T = 3 sec. C/T = 2 sec. C/T = 1 sec. with stocking levels C/O = 10 min. C/O = 5 min. C/O = 2 min. C/O = N/A C/O = N/A by shape and scent Rel. = 100% Rel. = 85% Rel. = 80% Rel. = 100% Rel. = 100% Increase 10.8 Days 0.7 Days 5.0 days 16.5 Days Lead Time Reliability 65 minutes, 7 seconds 65 min. 7 seconds Value-Added Time
  • 43. Questions to Ask About the Value Stream Is the step valuable? Is the step capable? Is the step available? Is the step adequate (capacity)? Is the step flexible?
  • 45. Lean Manufacturing Concepts & Techniques Flow: Setup Reduction, Cellular Manufacturing, Batch Size Reduction, Visual Workplace, Layout Pull: Kanban Systems, Supply Chain Management, Point of Use Perfection: Quality Systems including variation reduction, Training
  • 46. Road Map to Lean Six Sigma Lean to improve flow and reduce inventory & lead time Six Sigma for Process Variation in Value Stream Value Stream Map (Current State) Stamping Orders With No Plating or Heat Treatment (Potential Future State Changes in Red) Projected requirements Phosphor Bronze Omega Precision Beryllium Copper Randomly Placed Brass (30%) Order as Needed Production Control Various (30%) Vista S oftw are S ystem Orders (Various Sizes) (40%) 10 Week LT Customers 6 Mos. LT 4 Weeks LT 6 Weeks Reroll In Stock- 1 Week Review Work Schedule with Formal Production Average of Suppliers 1 mm pcs per day Control in Various Sizes Orders (2 to 13) Single Point Every Week Every Week Ever y Week of Control Weekly Production Weekly Shipping Schedule Pressroom List Manager Daily Shipments Average order = 208,000 pcs 252,000 strokes Pre-Control for Roll Changes Combine? •Lot Control Improvement Stamping •Handling Reduction Degreasing Packing Shipping Drying 10 to 24 coils 11 Stamping 3 times /w eek Manual Presses I 6 Operators I 1 unit I 1 Operator I Shipper 2 Baskets - Strip 50 to 70 20 to 40 Bins 1 Basket - Pieces 2 Hours 1 Day Racks to Run: 200-600pcs/min C/T = 2 Hr Strips 12 Weeks 100 to 125 C/T = .003 min/pc. Max 1000/Basket C/T =10 hr Auto Coils Visual Status Min 200/Basket C/O = None Bagging C/O = 4.5 hrs. = 30 Min Pcs. Rel. = 80% Standard Time of Presses 25,000 Pcs/Basket for Setup Setup Available: 590 min/shift Layout is C/O = None Adjustment Time Rel. = 90% a Problem Rel. = 95% 16.75 Days Lead Time 10 Days Sankyo 2 Days Reduce 1 Day to 12 Weeks + coil lead time Coil Feeds Cycle Time per average order 1.5day(avg) 2.25 Days 3.75 Days Value Added Time
  • 47. Low Productivity Electrical Device Assembly The Challenge in Two Steps Client wanted wave soldering and robotic pick and place Functional operational layout Reject rate 5 to 8% Extensive material staging No space Initially, 13 people in Aurora cell Low output: 300 units/day
  • 48. Lean Six Sigma Techniques Used Process mapping Cellular Manufacturing & Layout Balance Cycle Times Between Work Stations Reduce Batch Size & parts staging Quality Data Collection & Analysis (Reduce Reject Rate)
  • 50. WORKSTATION CYCLE TIME: 25sec., 1.25 min. Cell Changes REJECT PER 3 UNITS DATA 2 LED TEST SOLDER & CUT 4 5 6 7 ATTACH SAMPLES 8 9 BACK ASSEMBLY CONTACTS BUTTON & GLUE COVER, #1 ASSEMBLY BATTERY SWITCH/ STAKE PACK LED COLD STAKE & ASSEMBLY ATTACH 1 PLACEMENT TEST PCBs SOLDER LABEL STRAP & ATTACH STRAP STRAP INSERT TEST LED REJECT SWITCH PCBs SOLDER DATA ACTIVATOR & CUT 3 ASSIST REJECT DATA AFTER CHANGES WORKSTATION CYCLE TIME: 25sec., 1.25 min. PER 3 UNITS TEST 4 SAMPLES 1 2 3 5 6 ATTACH BACK ASSEMBLY CONTACTS BUTTON & GLUE PCBs from COVER, #1 ASSEMBLY BATTERY SWITCH/ supplier STAKE PACK COLD STAKE & ASSEMBLY ATTACH STRAP & TEST PCBs SOLDER LABEL STRAP ATTACH STRAP REJECT INSERT DATA SWITCH ACTIVATOR
  • 51. Lean Six Sigma Changes Cold staking fixtures Powered screw drivers Light test & Soldering fixtures Quality data tracking via % defect control chart (p chart)
  • 52. With Lean Six Sigma The Results Balanced cell at 24 sec per work station Two U-shaped cells 3 piece flow 1000 units/day per cell vs 300 6 people per cell vs 13 Faster identification of quality problems Operating at 5 to 6 sigma Better teamwork No backlog
  • 53. Reducing WIP & Improving Quality Wire Extrusion & Finishing The Challenge Client wanted to reduce WIP by 50% Extrusion rejects (7%) Material flow problems Little data collection
  • 54. Lean Six Sigma Techniques Used Value Stream Mapping Cellular Manufacturing & Layout Kanban Trigger Board 5S Quality Data Collection & Analysis (Reduce Reject Rate)
  • 55. Reducing Lead Time & Improving Quality Steel Panel Fabrication The Challenge Client wanted to reduce lead time to less than one week Automated equipment had been installed but had problems Panel rejects & rework (5%) Material flow problems Few process controls or data collection
  • 56. Value Stream Map (Current State) Blanket Annual Purchase Order with Daily Releases Production Control Randomly Placed (normally working Various Distributors Sheet Galvanized Sheet Galvanized Sheet Galvanized Sheet Galvanized Orders (normally 24 to 48 hours ahead (~ 24 for Smith Corp. & Steel (4’ by 8’ or cut) Steel (4’ by 8’ or cut) Steel (4’ by 8’ or cut) Steel (4’ by 8’ or cut) single unit orders) of ~ 6 for Jones Systems promised shipment) Average volume of 1000 systems per month in peak season. Customers are mainly distributors. There are a few dealers. Daily Daily Up to an average Daily Production Production of 130,000 lbs Shipping Daily Reports Reports daily in peak Schedule Shipments season In Straight Panel Dept. Shear Notch Specialty Punch Corner Punch Bend Stake & Label Add Z Brace Radius & Band Rack Shipping 1 Accurshear 1 Manual 4 Semi-Auto 3 Semi-Auto 1 Manual 1 Automated 1 Automated 1 Manual Table, Automated Notcher (S-23) Punches Punches Brake (R-7) Machine (R-8) Machine (ACR) 1 Jig-less Shear (P-3) & 1 Automated (S-1, S-2, & S-3) & 1 Automated Machine (R12), I Notcher (R-3) Brake (R-13) & 1 Jig Machine (R1) 2 to 5 days 1 Material 1 Operator 1/2 Operator 0 Operators 1 Operator 1/2 Operator 1/2 Operator 1/2 Operator 2 Operators 2 Operators depending Handler on pre-cut size C/T = 4 min. C/T = 2 min. C/T = 2 min. C/T = 2 min. C/T = 5 min. C/T = 2 min. C/T = 7 min. C/T = 8 min. C/T = N/A C/O = N/A C/O = 4 min C/O = N/A C/O = up to C/O = 30 to C/O = N/A C/O = N/A (average) C/O = N/A Rel. = 99% Rel. = 95% Rel. = 99% 30 min. 60 sec. Rel. = 99% Rel. = 98% to C/O = 2 to 30 Rel. = 100% Rel. = 99% Rel. = 90% 99% min. Rel. = 80% 2 to 5 Working Days, to 100% Lead Time 2 to 5 days 32 minutes, 4 min. 2 min. 2 min. 2 min. 5 min. 2 min. 7 min. 8 min. Value-Added Time
  • 57. Lean & Six Sigma Techniques Used Value Stream Mapping Process flow diagrams Setup time Analysis Quality Data Collection & Analysis (Reduce Reject Rate & Variability)
  • 58. INITIAL IMPROVEMENT CONCEPTS Improve reliability and changeover capability of R1 and R12 machines. Reduce panel reject rate. Radius & Band Work to 1 to 2 days lead time 1 Manual Table, Rack 1 Jig-less Machine (R12), & 1 Jig Machine 1 Material (R1) Handler 2 Operators C/T = 8 min. C/T = N/A (average) C/O = N/A C/O = 2 to 30 Rel. = 100% min. Reject rate = 5% Rel. = 80% to 100% 2 to 5 Working Days, 8 min. Lead Time
  • 59. 6 Foot Long Custom Radius Panel Fabrication Trumpf Area Straight Panel Dept. Notch Panel & Punch Bend Add Z Brace(s) Material Raw (Trumpf & Stake (if required) Material Stock Machine) 14 Ga. Galvanized Steel (pre-cut 53-15/16” by 6’3-15/16” sheets) Radius & Band Label Rack Ship (R12 - Jigless Machine) WIP Stock 16 Different Panels with Various Cutouts Custom Panel Dept. Band Shear Material Raw & Cut Material Stock 11 Ga. Galvanized Steel Partially finished panels are stocked in (4’ by 8’ standard sheets) sixteen different configurations. Panels are finished to order. Work is done in three different areas as noted.
  • 60. UNDERSTANDING ROOT CAUSES of R12 PROBLEMS CAUSE AND EFFECT DIAGRAM Red = Most Important Causes SET UP VALUES CHANGE NO SPECS OPERATORS MEASUREMENT RADIUS TEMPLATE MAINTENANCE ACCURACY PANEL CHANGES SQUARENESS SETTINGS DIFFERENT SETUP PROCEDURES NO DIMENSIONAL SPECS OR TOLERANCES DIFFERENT OPEATOR MEASURES USED ON OPERATOR R1 & R12 PREFERENCE JUDGEMENT NO TRUST RADIUS ANGLES NO SPECS DON'T MEET SEGMENT LENGTH CURVATURE TEMPLATE REQUIREMENTS AT MOUNTING SETUP WRONG DIGITAL READOUT (4' & 6' RADIUS PANEL WIDTH VARIES USELESS PANELS) POOR TRANSDUCER BAD 3 SUPPLIERS SHEET DIMENSIONS USE OF AIR vs. VARY SELECTION BEARINGS HYDRAULICS BANDS HAVE ON LOWER CAMBER FORMING INDEXES VARY TOOL GALVINIZED COATING INDEXES VARY CRUDE INDEX INACCURATE DIFFERENT ON POOR MAINT SYSTEM DESIGN CUTTING PANELS LOCATION PANEL OF SPECIALTY PUNCHES NOTCH O.D.SPACING VARIES ON PANEL SURFACE FINISH RADIUS VARIES .09 IN BACKING SHOE VARIES SIDE TO SIDE DIFFERENT ADJ.USTMENT. STEEL PROPERTIES PANEL NOTCH POSITION VARIES NO SPECS 3 SUPPLIERS AIR CYLINDER PANELS CATCH AT OPPOSING LAST 2 BENDS HYDRAULIC IN HEAD AIR PRESSURE LOW WIDTH OF STEEL BETWEEN ASSEMBLY NOTCHES VARIES 3.75 to 4.0 in. YIELD STRENGTH VARIES CONVEYOR NOT ACROSS RADIUS MAINTENANCE EQUIPMENT ADJUSTED PLATE THICKNESS PUNCH NO SPECS VARIES HOT VS COLD ROLL LOCATION PANEL NOT VARIES SQUARE. wIDTH 3 SUPPLIERS TOO LARGE NO SPECS DIFFERENT EQUIPMENT USED MATERIAL COATING STRAIGHT PANEL (PANELS, STEEL) VARIES 3 SUPPLIERS SPECIALTY PUNCH
  • 61. Process Improvements Separating Process & Machine Issues Common setup procedure Replace measurement gages Established process capability Implemented process controls for panel dimensions Identified realtime data requirements Completed identified maintenance actions Implemented PM program
  • 62. Why Lean Automation? “After implementing lean improvements such as cellular manufacturing and setup reduction, selective automation can add value and reduce human variability.” Richard Schonberger, June 2002
  • 63. New Radius Bending Machine R13 • Automated band cutting • Servo driven adjustments from panel bar codes • Online radius measurement and tracking
  • 64. R13 Capabilities After Lean Six Sigma Operates as a cell Runs two product families Changeover in less than 5 sec. within and between product families Cycle time reduced from 5 min. to 1.8 min. Realtime auto check of each panel with data collection Operating at 6 sigma
  • 65. Lean Six Sigma in the Fast Lane! As lead time decreases………….. the need for realtime data increases!
  • 66. Automation Provides Realtime Data to Control Variation for Six Sigma Enhances Define-Measure- Analyze-Improve-Control methodology (DMAIC) Online measurement of Process Control process parameters Direct data input into control charts Provide realtime controls as control limits are understood
  • 67. R13 Process Controls & System Status Realtime Data Collection for Six Sigma Analysis Diagnostics for Rapid Identification of Problems
  • 68. Realtime Data From R13 Target Top Bot. Bend Bend Bend Bend Panel Panel Index Chord Chord Chord Delta Top Angle Angle Factor Factor Radius Length Cycle Count Height Height Height / Bot. Top Dev. Bot. Dev. Offset Factor Top Bot. (Feet) (Inches) Time Template Template V2022 V2030 V2046 V2066 V2032 V2050 V2070 V1610 V1612 V1614 V1616 V1706 V1710 V2014 Remarks Dev. Top Dev. Bot. 31 14.051 14.089 14.118 0.029 0.039 0.067 0.000 1.325 0.797 0.921 4.000 75.375 131.2 Log Data 1 14.051 14.593 14.898 0.305 0.543 0.848 0.000 1.325 0.795 0.951 4.000 75.375 139.5 formula 2 14.051 14.089 13.947 0.142 0.039 -0.104 0.000 1.325 0.781 0.880 4.000 75.375 132.9 general, using values from 3'R 3 14.051 14.008 13.748 0.259 -0.043 -0.302 0.000 1.325 0.781 0.880 4.000 75.375 131.7 4 14.051 14.014 13.803 0.211 -0.036 -0.248 0.000 1.325 0.781 0.880 4.000 75.375 131.6 5 14.051 13.960 13.652 0.307 -0.091 -0.398 0.000 1.325 0.781 0.885 4.000 75.375 132.4 6 14.051 14.055 13.844 0.211 0.005 -0.207 0.000 1.325 0.781 0.900 4.000 75.375 132.0 7 14.051 13.824 13.817 0.007 -0.227 -0.234 0.000 1.325 0.781 0.905 4.000 75.375 132.3 8 14.051 13.796 13.824 0.027 -0.254 -0.227 0.000 1.325 0.781 0.910 4.000 75.375 132.0 9 14.051 13.926 13.974 0.048 -0.125 -0.077 0.000 1.325 0.790 0.920 4.000 75.375 131.6 10 14.051 14.001 13.967 0.033 -0.050 -0.083 0.000 1.325 0.795 0.920 4.000 75.375 132.3 11 14.051 13.980 13.967 0.013 -0.070 -0.083 0.000 1.325 0.795 0.920 4.000 75.375 131.1 12 14.051 14.014 14.063 0.049 -0.036 0.013 0.000 1.325 0.795 0.920 4.000 75.375 131.3 13 14.051 13.980 13.960 0.020 -0.070 -0.090 0.000 1.325 0.795 0.920 4.000 75.375 130.9 14 14.051 14.137 14.214 0.077 0.086 0.163 0.000 1.325 0.800 0.925 4.000 75.375 132.6 15 14.051 14.117 14.173 0.056 0.066 0.122 0.000 1.325 0.800 0.925 4.000 75.375 129.2 16 14.051 14.137 14.152 0.015 0.086 0.102 0.000 1.325 0.800 0.925 4.000 75.375 131.0 17 14.051 14.103 14.118 0.015 0.052 0.067 0.000 1.325 0.798 0.922 4.000 75.375 133.0 18 14.051 14.089 14.097 0.008 0.039 0.047 0.000 1.325 0.798 0.922 4.000 75.375 131.4 19 14.051 14.178 14.104 0.074 0.127 0.054 0.000 1.325 0.798 0.922 4.000 75.375 131.0 20 14.051 14.144 14.173 0.029 0.093 0.122 0.000 1.325 0.797 0.921 4.000 75.375 132.6 21 14.051 14.130 14.104 0.026 0.079 0.054 0.000 1.325 0.797 0.921 4.000 75.375 131.0 22 14.051 14.076 14.097 0.022 0.025 0.047 0.000 1.325 0.797 0.921 4.000 75.375 130.9 23 14.051 14.123 14.070 0.053 0.073 0.019 0.000 1.325 0.797 0.921 4.000 75.375 3.9 24 14.051 14.069 14.043 0.026 0.018 -0.008 0.000 1.325 0.797 0.921 4.000 75.375 136.5 25 14.051 14.089 14.070 0.019 0.039 0.019 0.000 1.325 0.797 0.921 4.000 75.375 0.0 26 14.051 14.089 14.104 0.015 0.039 0.054 0.000 1.325 0.797 0.921 4.000 75.375 131.6 bands from stock, COE belt broken 27 14.051 14.096 14.022 0.074 0.045 -0.029 0.000 1.325 0.797 0.921 4.000 75.375 136.9 28 14.051 14.089 14.097 0.008 0.039 0.047 0.000 1.325 0.797 0.921 4.000 75.375 131.3 29 14.051 14.082 14.111 0.029 0.032 0.060 0.000 1.325 0.797 0.921 4.000 75.375 131.2 30 14.051 14.117 14.152 0.036 0.066 0.102 0.000 1.325 0.797 0.921 4.000 75.375 131.3 31 14.051 14.089 14.118 0.029 0.039 0.067 0.000 1.325 0.797 0.921 4.000 75.375 131.2
  • 69. How Do We Use Lean Six Sigma Techniques Get Management commitment Assess the operation using a Value Stream Map (Product families & Production data) Identify lean improvements & kaizens without automation Implement lean improvements using VSM plan Identify processes requiring Six Sigma analysis Analyze, eliminate, and control variation Start the cycle again!
  • 70. Lean Six Sigma Methodology that maximizes shareholder value by achieving the fastest rate of improvement in….. Customer satisfaction Operating costs Process speed(lead time) Inventory & invested capital Quality Operating flexibility
  • 71. Contact Information Advent Design Corporation Canal Street and Jefferson Ave. Bristol, PA 19007 www.adventdesign.com 800-959-0310 Frank Garcia, Director Planning & Producttvity frank.garcia@adventdesign.com
  • 72. Bill Chesterson CEO Automation & Product Design Advent Design 215 781 0500 Ext: 203 Corporation bill.chesterson@adventdesign.com 925 Canal Street Tom Lawton President Bristol PA, 19007 Contract Manufacturing 215 781 0500 Ext: 202 (P) 215 781 0500 (F) 215 781 0508 tom.lawton@adventdesign.com www.adventdesign.com Frank Garcia Director Planning & Productivity 215 781 0500 Ext: 207 frank.garcia@adventdesign.com