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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?
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

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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?
  • 44.
  • 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