integrating six sigma and lean manufacturing the challenges & benefits
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Integrating Six Sigma and Lean Manufacturing
The Challenges & Benefits
Integrating Six Sigma and Lean Manufacturing
The Challenges & Benefits
Frank GarciaFrank Garcia
ADVENT DESIGN CORPORATIONADVENT DESIGN CORPORATION
SIX SIGMA or LEAN MANUFACTURING
Need to lower costs & reduce lead time?
SIX SIGMA or LEAN MANUFACTURING
Need to lower costs & reduce lead time?
•• Material flow is poorMaterial flow is poor•• Error rate is high Error rate is high •• CanCan’’t deliver t deliver ontimeontime•• Equipment too slowEquipment too slow
Six Sigma or Lean Manufacturing?Six Sigma or Lean Manufacturing?
LEAN MANUFACTURING:LEAN MANUFACTURING:
Reduce Lead Time by eliminating waste in the Value StreamReduce Lead Time by eliminating waste in the Value StreamProvides the Game Plan and PlaysProvides the Game Plan and Plays
SIX SIGMA:SIX SIGMA:
Reduce process variationReduce process variationProvides the Play by Play Analysis and Instant ReplayProvides the Play by Play Analysis and Instant Replay
Six Sigma or Lean Manufacturing?Six Sigma or Lean Manufacturing?
LEAN MANUFACTURING:LEAN MANUFACTURING: Flow FocusedFlow Focused
Lean cannot bring a process under statistical controlLean cannot bring a process under statistical control
SIX SIGMA: SIX SIGMA: Problem FocusedProblem Focused
Can not dramatically improve process speed or reduce Can not dramatically improve process speed or reduce invested capitalinvested capital
NEED BOTH!NEED BOTH!
Integrating Six Sigma with Lean Manufacturing
Integrating Six Sigma with Lean Manufacturing
Increases customer satisfactionIncreases customer satisfactionImproves profitability & competitive Improves profitability & competitive positionpositionHas historical integration problemsHas historical integration problemsRequires a different system modelRequires a different system modelRequires implementation & sustaining Requires implementation & sustaining plansplans
Lean Manufacturing SystemLean Manufacturing SystemGoals areGoals are
Highest qualityHighest qualityLowest costLowest costShortest lead timeShortest lead time
Achieved by eliminating waste in the value Achieved by eliminating waste in the value streamstreamIndustry benchmark: Toyota Production Industry benchmark: Toyota Production System (TPS)System (TPS)TPS is applied I.E. and common senseTPS is applied I.E. and common sensePrinciple: organization supports the value Principle: organization supports the value adderadder
Definition of Value -AddedDefinition of Value -AddedValue is added any time the product is physically Value is added any time the product is physically changed towards what the customer is intending changed towards what the customer is intending to purchase. to purchase.
Value is also added when a service is provided Value is also added when a service is provided for which the customer is willing to pay (i.e. for which the customer is willing to pay (i.e. design, engineering, etc.).design, engineering, etc.).
If we are not adding value, we are adding cost or If we are not adding value, we are adding cost or waste. waste.
90% of lead time is non90% of lead time is non--value added!value added!
Value StreamValue Stream
The value stream is the set of all the The value stream is the set of all the specific actions required to bring a specific actions required to bring a specific product (good or service) through specific product (good or service) through the critical management tasks of any the critical management tasks of any business:business:
1. Information Management1. Information Management2. Transformation2. Transformation
The EIGHT WastesThe EIGHT Wastes
Inventory (more than one piece flow)Inventory (more than one piece flow)Overproduction (more or Overproduction (more or soonersooner than needed)than needed)Correction (inspection and rework)Correction (inspection and rework)Material MovementMaterial MovementWaitingWaitingMotionMotionNonNon--Value Added ProcessingValue Added ProcessingUnderutilized PeopleUnderutilized People
Six Sigma System Six Sigma System
A defined management process and CTQ A defined management process and CTQ goal (3.4 goal (3.4 ppmppm) 3 sigma is 66,807 ) 3 sigma is 66,807 ppmppm!!Driven from the topDriven from the topFocused on Voice of the CustomerFocused on Voice of the CustomerA data analysis and problem solving A data analysis and problem solving methodologymethodologyStrong focus on variation reductionStrong focus on variation reductionSupported by highly trained problem Supported by highly trained problem solverssolvers
ScrapScrapReworkRework
WarrantyWarrantyRejectsRejects
Uncovering QualityUncovering Quality’’s Hidden Costss Hidden Costs
Lost Sales
Late Delivery
Engineering Change Orders
Long Cycle TimesExpediting Costs Excess Inventory
More Set-ups
Working Capital Allocations
Excessive MaterialOrders/Planning
Traditional(Tip of the Iceberg)
Traditional(Tip of the Iceberg)
LostOpportunities
Additional Costs of Poor QualityAdditional Costs of Poor Quality
5 to 8 %15 to 20 %
Six Sigma Variation ReductionSix Sigma Variation Reduction
Variation Reduction is Cost ReductionVariation Reduction is Cost Reduction
Process Variation Should be Less Than SpecsProcess Variation Should be Less Than Specs
Six Sigma’s (σ) Focus: Reducing VarianceSix Sigma’s (σ) Focus: Reducing Variance
“ You have heard us talk about span, the “evil” variance our customers feel in our responseto their requests for delivery, service or financing.”
A process mean tells us how the process is performing while the variance gives us an indication of process control.
Reducing the variance provides better control of the process.
What is Six Sigma (σ) Quality?What is Six Sigma (What is Six Sigma (σσ) Quality?) 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 the populationWith 6 σ Quality, approximately 3.4 items in a
population of 1,000,000 items would be unacceptable.
Six Sigma System Six Sigma System
20% margin improvement20% margin improvement12 to 18% increase in capacity12 to 18% increase in capacity12% reduction in number of employees12% reduction in number of employees10 to 30% reduction in capital10 to 30% reduction in capital
Improving Profitability Improving Profitability A 1 Sigma Improvement YieldsA 1 Sigma Improvement Yields……....
Source: Six Sigma - Harry & Schroeder
Six Sigma Financial Impact Areas: The Savings Categories
Six Sigma Financial Impact Areas: The Savings Categories
1.1. Cost Reduction Cost Reduction (including (including cost at standard and costs not cost at standard and costs not included in standard cost)included in standard cost)
2.2. Cost Avoidance Cost Avoidance (can be (can be difficult to document)difficult to document)
3.3. Inventory ReductionInventory Reduction4.4. Revenue EnhancementRevenue Enhancement5.5. Receivables ReductionReceivables Reduction
Six Sigma System Six Sigma System
Customer centricity: What do they value?Customer centricity: What do they value?Financial resultsFinancial resultsManagement engagement & involvementManagement engagement & involvementResource commitment: 1 to 3% of staff full Resource commitment: 1 to 3% of staff full timetimeExecution infrastructure: black & green Execution infrastructure: black & green belts, teamsbelts, teams
A culture characterized byA culture characterized by……....
Six Sigma Problem Solving StepsSix Sigma Problem Solving StepsSix Sigma Problem Solving Steps
Process
Define & MeasureValidate Data Collected
AnalyzeVital Few Factors For Root Causeof Problem
ImproveIdentify appropriate operating conditions
BreakthroughStrategy
Characterization
ControlSustain - Insure Results to Bottom Line
Optimization
The DMAIC CycleThe DMAIC Cycle
Define
ImprovePlan-Do-Study-Act
Measure &Analyze
Control
Management Commitment
Plan-Do-Study-ActTeamsBenchmarkAnalysis toolsID variability
Employee Involvement
Design of Experiments
SDCASDCA
SDCASDCA
SDCA = StandardizeSDCA = Standardize--DoDo--CheckCheck--AdjustAdjust
Six Sigma In ActionSix Sigma In Action
Six Sigma ToolsSix Sigma Tools
Check Sheets:Check Sheets: Checklists of what is to be accomplished,etc..
Scatter Diagrams:Scatter Diagrams: A graphical representation between two measurements (variables).
Fishbone or Cause and Effect Diagrams: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: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 ToolsSix Sigma Tools
Process Maps or Flowcharts: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, Ideally process maps should include cycle times, defect information, etc. defect information, etc.
FMEAFMEA’’s (Potential Failure Mode and Effects Analysis):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.
XX--Y Matrix:Y Matrix: A ranking method used to prioritize process inputs (X’s) to process outputs (Y’s).
Six Sigma Tools - Process Maps or Flowcharts
Six Sigma Tools Six Sigma Tools -- Process Maps or Process Maps or FlowchartsFlowcharts
What are the XWhat are the X’’s (Input variables) at each process s (Input variables) at each process step?step?
What are the YWhat are the Y’’s (Output Variables) at each process s (Output Variables) at each process step?step?
Remember Y = f (x)Remember Valued Added Remember Valued Added versus Nonversus Non--Value AddedValue Added
Remember Cycle Times Remember Cycle Times and Defectsand Defects
Traditional Six Sigma Implementation- Who is Involved
Traditional Six Sigma Implementation- Who is Involved
Senior ManagementSenior Management
Master Master Black BeltsBlack Belts
Technical Technical Trainers, Mentors: Trainers, Mentors:
FullFull--Time Time CommitmentCommitment
Black BeltsBlack Belts
Project LeadersProject Leaders-- FullFull--Time Time
CommitmentCommitment
Green BeltsGreen BeltsProject LeadersProject Leaders--
PartPart--Time Time CommitmentCommitment
Champions and LeadersProvides direction, removes Provides direction, removes obstacles, reviews progressobstacles, reviews progress
Six Sigma Information FlowSix Sigma Information Flow
The Bad News: Six Sigma Program: Implementation Issues
The Bad News: Six Sigma Program: Implementation Issues
Some of the facts:Some of the facts:
80% of Six Sigma Implementations fail.80% of Six Sigma Implementations fail.
Traditional Six Sigma implementations have Traditional Six Sigma implementations have largely been attempted at large Fortune 500 largely been attempted at large Fortune 500 Companies due to the large investment in Companies due to the large investment in people, training and overall support.people, training and overall support.
Training costs alone for a Training costs alone for a ““wavewave”” of 25 of 25 people can cost $250,000 for this 4 to 6 people can cost $250,000 for this 4 to 6 month training period. Training costs and month training period. Training costs and personnel requirements can overwhelm personnel requirements can overwhelm many smaller organizations.many smaller organizations.
Need for Six Sigma & LeanNeed for Six Sigma & Lean
Quality, Warranty, and CostQuality, Warranty, and CostCustomers Require Six SigmaCustomers Require Six SigmaCustomers Require Lean ManufacturingCustomers Require Lean ManufacturingCompetitors are implementing Lean & Six Competitors are implementing Lean & Six SigmaSigmaStaying in businessStaying in business
External External -- Satisfying CustomersSatisfying Customers……....
Need for Six Sigma & LeanNeed for Six Sigma & Lean
Operational Cost ReductionOperational Cost ReductionImprove ProductivityImprove ProductivityReduce Scrap and ReworkReduce Scrap and ReworkReduce Inventory & WIPReduce Inventory & WIP
Engineering Design Cost Reduction Engineering Design Cost Reduction DefineDefine--MeasureMeasure--AnalyzeAnalyze--DesignDesign--Verify (DMADV)Verify (DMADV)
Stabilize & Quantify Process CapabilityStabilize & Quantify Process CapabilityInput for Product and Design ProcessInput for Product and Design Process
Internal Internal -- Improving Profitability throughImproving Profitability through……....
Lean Six Sigma ModelLean Six Sigma Model
You Can Apply Six Sigma Techniques to Complement Existing Lean Capabilities
You Can Apply Six Sigma Techniques to Complement You Can Apply Six Sigma Techniques to Complement Existing Lean CapabilitiesExisting Lean Capabilities
Lean Training & Implementation
VSMVSM
Inventory Reduction & Control
Waste Reduction
Process Process variationvariation
Six SigmaAnalysis, Problem Solving &Training
Supply Chain Management
LeanTechniques
Lean Six Sigma Implementation Lean Six Sigma Implementation
Only Six Sigma or Lean Implemented Only Six Sigma or Lean Implemented -- big big $ savings but money left on the table$ savings but money left on the tableSeparate Six Sigma & Lean initiatives Separate Six Sigma & Lean initiatives competing for best resourcescompeting for best resourcesDifficulty in sustaining the gainDifficulty in sustaining the gain
Historical Implementation ProblemsHistorical Implementation Problems
Lean Six Sigma Implementation Lean Six Sigma Implementation
Need to implement in the correct orderNeed to implement in the correct orderPolicy deployment to align business Policy deployment to align business objectives (Flow, Waste & Variation objectives (Flow, Waste & Variation Reduction)Reduction)Focus on shop floor results, not class Focus on shop floor results, not class room skillsroom skillsExperienced teachers & coachesExperienced teachers & coachesStandardized work to institutionalize the Standardized work to institutionalize the gainsgains
Some SolutionsSome Solutions…………..
The Lean Six Sigma StrategyThe Lean Six Sigma Strategy
Lean 6Lean 6σσ is a CHANGE STRATEGY for accelerating improvements in processesis a CHANGE STRATEGY for accelerating improvements in processes, , products, and services to improve a companyproducts, and services to improve a company’’s performance leading to improved s performance leading to improved financial performance and competitiveness of the organization.financial performance and competitiveness of the organization.
Goals:Goals:
Improved Customer SatisfactionImproved Customer SatisfactionIncreased ProfitsIncreased ProfitsImproved Process Capability by Improved Process Capability by Reducing VarianceReducing VarianceIncreased Market ShareIncreased Market ShareSupport Continuous ImprovementSupport Continuous ImprovementSustained Gains for Completed Sustained Gains for Completed ProjectsProjects
Lean and the 6 σ StructureLean and the 6 σ Structure
LEAN Manufacturing Practices
Problem Solving
Yellow and Green Belt
Black Belt
M.B.B
Problem Solving Team Problem Solving Team MembersMembers
Waste reduction and Waste reduction and Continuous ImprovementContinuous Improvement
Functional 6Sigma Team Functional 6Sigma Team Member. Familiar with toolsMember. Familiar with tools
Problem solver, assists Black Belt. Problem solver, assists Black Belt. Working Knowledge of toolsWorking Knowledge of tools
Problem solver,Proficient with toolsProblem solver,Proficient with tools
Problem solver, Teacher, Mentor. Expert in Problem solver, Teacher, Mentor. Expert in use of the toolsuse of the tools
FULL TIME COMMITMENT
25-50%
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?
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 JustifyEasier for Small Business to JustifyFocused on Solving CompaniesFocused on Solving Companies’’ ProblemsProblemsJoint Problem Solving and Knowledge/Skill Joint Problem Solving and Knowledge/Skill TransferTransferEasier to Meet Customer Mandates to Use Easier to Meet Customer Mandates to Use Lean Six Sigma TechniquesLean Six Sigma TechniquesProvides Evolutionary Approach to Lean/Six Provides Evolutionary Approach to Lean/Six Sigma Implementation and TrainingSigma Implementation and Training
How Do We Use Lean Six Sigma TechniquesHow Do We Use Lean Six Sigma TechniquesHow Do We Use Lean Six Sigma TechniquesGet Management commitmentGet Management commitmentAssess the operation & understand the Assess the operation & understand the Process using a Value Stream Map Process using a Value Stream Map (Product (Product families & Production data)families & Production data)
Identify lean improvements & Identify lean improvements & kaizenskaizenswithout automation without automation Implement lean improvements using VSM Implement lean improvements using VSM planplanIdentify processes requiring Six Sigma Identify processes requiring Six Sigma analysisanalysisAnalyze, eliminate, and control variationAnalyze, eliminate, and control variationStart the cycle again!Start the cycle again!
The Lean Six Sigma CycleThe Lean Six Sigma Cycle
Commitment &Assessment
ImplementationPlan
RecommendedSolutions
DO IT!
Continuous Improvement
Set UpLayoutCellsVisual
Variation Reduction
Information Systems
VSMVSM
Understanding the Process: The 1st Step and Foundation of Lean Six Sigma
Understanding the Process: The 1st Step and Foundation of Lean Six Sigma
Y = f(X)
Output(s)Output(s)are a functionare a function
Input(s)Input(s)
The Lean Six Sigma process attempts to The Lean Six Sigma process attempts to control the outputs by controlling the control the outputs by controlling the inputs (those Critical to Quality or inputs (those Critical to Quality or CTQCTQ’’ss))
The value stream map follows the production The value stream map follows the production path from beginning to end and shows a visual path from beginning to end and shows a visual representation of every process in the material representation of every process in the material and information flowsand information flows
Shows how the shop floor currently operatesShows how the shop floor currently operates
Foundation for the future stateFoundation for the future state
Value Stream Map An Assessment Tool
Value Stream Map An Assessment ToolAn Assessment Tool
Using the Value Stream Mapping ToolUsing the Value Stream Mapping Tool
product family
current state drawing
future state drawing
plan and implementation
Understanding how the shop floorcurrently operates. The foundationfor the future state.
Designing a lean flow
CustomersSuppliers
File: VSM-A1
ProductionControl
IProcess
RawMaterials
FinishedGoods
Equipment
CycleTimesChangeOverReliabilityError Rate
LeadTime
Value Stream Map Concept
I
OrdersOrders
Schedules
Soak & Dry Packaging Labeling Case PackingCartoning Shipping
I I I I I I
C/T = 25 - 65 min.C/O = 10 min.Rel. = 100%
C/T = 1 sec.C/O = 5 min.Rel. = 85%
C/T = 3 sec.C/O = 2 min.Rel. = 80%
C/T = 1 sec.C/O = N/ARel. = 100%
C/T = 2 sec.C/O = N/ARel. = 100%
up to250stonesin WIP
0 01 Operator 1/2 Operator1 Operator 1 Operator1/2 Operator125 Cans of Oil20,640 Round Stones49,000 Shaped Stones
4290Stones
90,504Stones
VariousCustomers
Andrea Aromatics(Scented Oils)
New JerseyPorcelain
(Round Stones)
Alanx(Shaped Stones)
30 Cans of OilEvery 2 Weeks
59,000 StonesEvery 2 Weeks
50,000+ StonesEvery 2 Months
(via stringer)
Average of 6,000Stones per Dayin Various SizeOrders (8 to 20 case& 200 to 400 caserange mainly)
Production Control Randomly PlacedOrders (Various Sizes)
Orders Every 2 Weeks
Order as Needed
Bi- WeeklyProductio n Schedule
Daily ShippingOrders
11.6 Days
65 min.
0.7 Days
7 seconds
15.1 days 27.4 Days Lead Time
65 minutes, 7 secondsValue-Added Time
Value Stream Map (Current State)
DailyShipments
Existing Work Cell
AmeripackFlow Packager
APAIAutomatic
Stapler
Manual ManualMultipleBatch Tanks
Soak & Dry Packaging Labeling Case PackingCartoning Shipping
I I I I I
C/T = 25 - 65 min.C/O = 10 min.Rel. = 100%
C/T = 1 sec.C/O = 5 min.Rel. = 85%
C/T = 3 sec.C/O = 2 min.Rel. = 80%
C/T = 1 sec.C/O = N/ARel. = 100%
C/T = 2 sec.C/O = N/ARel. = 100%
up to250stonesin WIP
0 01 Operator 1/2 Operator1 Operator 1 Operator1/2 Operator75 Cans of Oil40,000 Round Stones25,000 Shaped Stones
4290Stones
30,000Stonesin a supermarkettype arrangementwith stocking levelsby shape and scent
VariousCustomers
Andrea Aromatics(Scented Oils)
New JerseyPorcelain
(Round Stones)
Alanx(Shaped Stones)
12 to 16 Cansof Oil Once aWeek
30,000 StonesOnce a Week
25,000 StonesOnce a Month(via stringer)
Average of 6,000Stones per Dayin Various SizeOrders (8 to 20 case& 200 to 400 caserange mainly)
Production Control Randomly PlacedOrders (Various Sizes)
Orders Every Week
Monthly Order
Bi-WeeklyProduction Schedule(large orders)
Daily ShippingOrders
10.8 Days
65 min.
0.7 Days
7 seconds
5.0 days 16.5 Days Lead Time
65 minutes, 7 secondsValue-Added Time
Value Stream Map (Future State)
DailyShipments
Existing Work Cell
AmeripackFlow Packager
APAIAutomatic
Stapler
Manual ManualMultipleBatch Tanks
4 Cases
IncreaseReliability
Questions to Ask About the Value Stream
Questions to Ask About the Value Questions to Ask About the Value Stream Stream
Is the step valuable?Is the step valuable?Is the step capable? Is the step capable? Is the step available? Is the step available? Is the step adequate (capacity)?Is the step adequate (capacity)?Is the step flexible?Is the step flexible?
Lean Manufacturing Concepts & Techniques
Lean Manufacturing Concepts & Techniques
Flow:Flow: Setup Reduction, Cellular Setup Reduction, Cellular Manufacturing, Batch Size Reduction, Manufacturing, Batch Size Reduction, Visual Workplace, Layout Visual Workplace, Layout
Pull:Pull: KanbanKanban Systems, Supply Chain Systems, Supply Chain Management, Point of Use Management, Point of Use
Perfection:Perfection: Quality Systems including Quality Systems including variation reduction, Training variation reduction, Training
Road Map to Lean Six SigmaRoad Map to Lean Six Sigma
Stamping DegreasingDrying
Packing Shipping
I I I I
Run: 200-600pcs/minC/T = .003 min/pc.
C/O = 4.5 hrs.
Available: 590 min/shiftRel. = 90%
C/T =10 hrC/O = NoneRel. = 80%
2 Hours
1 Operator Shipper
50 to 70Racks
100 to 125Coils
20 to 40 Bins 1 Dayto
12 Weeks
VariousCustomers
Brass (40%)
4 Weeks LT
Beryllium Copper (30%)
6 Mos. LTIn Stock- 1 Week
Phosphor Bronze(30%)
10 Week LT6 Weeks Reroll
Every Week Every Week Every Week
Average of 1 mm pcs per dayin Various SizesOrders (2 to 13)
Omega PrecisionProduction ControlVista Software System
Randomly PlacedOrders (Various Sizes)
Projected requirements
Order as Needed
Weekly ProductionSchedule Pressroom
Manager
Weekly ShippingList
10 Days
1.5day(avg)
2 Days
2.25 Days
1 Day to 12 Weeks 16.75 Days Lead Time+ coil lead time per average order3.75 Days ValueAdded Time
Value Stream Map (Current State) Stamping Orders With No Plating or Heat Treatment
(Potential Future State Changes in Red)
DailyShipments
1 unit
Manual 11 Stamping Presses
6 Operators
10 to 24 coils3 times /week
Average order = 208,000 pcs252,000 strokes
Standard Timefor Setup
AdjustmentSetupTime
Visual Statusof Presses
SankyoCoil Feeds
ReduceCycle Time
Layout isa Problem
AutoBagging
FormalProduction
Control
Single Pointof Control
2 Baskets - Strip1 Basket - Pieces
C/T = 2 Hr Strips Max 1000/Basket Min 200/Basket = 30 Min Pcs. 25,000 Pcs/BasketC/O = NoneRel. = 95%
Combine?•Lot Control Improvement
•Handling Reduction
Review WorkSchedule with
Suppliers
Pre-Control forRoll Changes
Lean to improve flow and reduce inventory & lead time Six Sigma for Process Variation in Value StreamSix Sigma for Process Variation in Value Stream
Low Productivity Electrical Device Assembly The Challenge in Two Steps
Low Productivity Electrical Device Assembly The Challenge in Two Steps
Client wanted wave Client wanted wave soldering and robotic pick soldering and robotic pick and placeand placeFunctional operational Functional operational layoutlayoutReject rate 5 to 8%Reject rate 5 to 8%Extensive material stagingExtensive material stagingNo spaceNo spaceInitially, 13 people in Initially, 13 people in Aurora cellAurora cellLow output: 300 units/dayLow output: 300 units/day
Lean Six Sigma Techniques UsedLean Six Sigma Techniques Used
Process mappingProcess mapping
Cellular Manufacturing & LayoutCellular Manufacturing & Layout
Balance Cycle Times Between Work Balance Cycle Times Between Work StationsStations
Reduce Batch Size & parts stagingReduce Batch Size & parts staging
Quality Data Collection & Analysis Quality Data Collection & Analysis (Reduce Reject Rate)(Reduce Reject Rate)
Cellular Assembly LayoutCellular Assembly Layout
Cell ChangesCell ChangesLED
SOLDER& CUT
LEDPLACEMENT
TESTPCBs
ASSEMBLY#1
COLD STAKETEST PCBs
CONTACTSASSEMBLY
&SOLDER
BUTTON &BATTERY
ASSEMBLYLABEL
ATTACHBACK
COVER,STAKE
STRAP &ATTACHSTRAP
TESTSAMPLES
GLUESWITCH/ATTACHSTRAP
PACK
REJECTDATA
WORKSTATION CYCLE TIME: 25sec., 1.25 min. PER 3 UNITS
LEDSOLDER
& CUT
INSERTSWITCH
ACTIVATOR
REJECTDATA
ASSIST
1
2
3
4 5 6 7 8 9
ASSEMBLY#1
COLD STAKETEST PCBs
CONTACTSASSEMBLY
&SOLDER
BUTTON &BATTERY
ASSEMBLYLABEL
ATTACHBACK
COVER,STAKE
STRAP &ATTACHSTRAP
TESTSAMPLES
GLUESWITCH/ATTACHSTRAP
PACK
REJECTDATA
AFTER CHANGES WORKSTATION CYCLE TIME: 25sec., 1.25 min. PER 3 UNITS
PCBs fromsupplier
INSERTSWITCH
ACTIVATOR
REJECTDATA
1 2 3 4 5 6
Lean Six Sigma ChangesLean Six Sigma Changes
Cold staking fixturesCold staking fixtures
Powered screw Powered screw driversdrivers
Light test & Soldering Light test & Soldering fixturesfixtures
Quality data tracking Quality data tracking via % defect control via % defect control chart (p chart)chart (p chart)
With Lean Six Sigma The Results With Lean Six Sigma The Results
Balanced cell at 24 sec per Balanced cell at 24 sec per work stationwork stationTwo UTwo U--shaped cellsshaped cells3 piece flow3 piece flow1000 units/day 1000 units/day per cellper cell vsvs3003006 people per cell 6 people per cell vsvs 1313Faster identification of Faster identification of quality problemsquality problemsOperating at 5 to 6 sigmaOperating at 5 to 6 sigmaBetter teamworkBetter teamworkNo backlog No backlog
Reducing WIP & Improving Quality Wire Extrusion & Finishing
The Challenge
Reducing WIP & Improving Quality Wire Extrusion & Finishing
The Challenge
Client wanted to reduce WIP Client wanted to reduce WIP by 50%by 50%Extrusion rejects (7%)Extrusion rejects (7%)Material flow problemsMaterial flow problemsLittle data collectionLittle data collection
Lean Six Sigma Techniques UsedLean Six Sigma Techniques Used
Value Stream MappingValue Stream Mapping
Cellular Manufacturing & LayoutCellular Manufacturing & Layout
KanbanKanban Trigger BoardTrigger Board
5S5S
Quality Data Collection & Analysis Quality Data Collection & Analysis (Reduce Reject Rate)(Reduce Reject Rate)
Reducing Lead Time & Improving Quality Steel Panel Fabrication
The Challenge
Reducing Lead Time & Improving Quality Steel Panel Fabrication
The Challenge
Client wanted to reduce Client wanted to reduce lead time to less than one lead time to less than one weekweekAutomated equipment had Automated equipment had been installed but had been installed but had problemsproblemsPanel rejects & rework (5%)Panel rejects & rework (5%)Material flow problemsMaterial flow problemsFew process controls or Few process controls or data collectiondata collection
Shear Notch Corner Punch Stake & LabelBend Shipping
I
C/T = 4 min. C/O = N/ARel. = 99%
C/T = 2 min. C/O = 4 minRel. = 95%
C/T = 2 min.C/O = up to
30 min.Rel. = 99%
C/T = 2 min.C/O = N/A Rel. = 99%
C/T = 5 min.C/O = 30 to
60 sec.Rel. = 90%
1 Operator 1/2 Operator1 Operator 2 Operators1/2 Operator
Various Distributors(~ 24 for Smith Corp. &~ 6 for Jones Systems
Sheet GalvanizedSteel (4’ by 8’ or cut)
Up to an averageof 130,000 lbsdaily in peak
season
Production Control(normally working
24 to 48 hours ahead of
promised shipment)
Randomly PlacedOrders (normallysingle unit orders)
Blanket Annual PurchaseOrder with Daily Releases
2 to 5 days
4 min.
2 to 5 Working Days,Lead Time
32 minutes,Value-Added Time
Value Stream Map (Current State)
DailyShipments
1/2 Operator
Add Z Brace
C/T = 7 min.C/O = N/ARel. = 98% to
99%
1/2 Operator
2 min. 2 min. 5 min. 2 min. 7 min.
DailyProduction
Reports
DailyShippingSchedule
Rack
1 MaterialHandler
DailyProduction
Reports
Average volume of 1000systems per month in peakseason.Customers are mainlydistributors. There are afew dealers.
C/T = N/AC/O = N/ARel. = 100%
Radius & Band
C/T = 8 min.(average)
C/O = 2 to 30min.
Rel. = 80% to 100%
2 Operators
8 min.
Sheet GalvanizedSteel (4’ by 8’ or cut)
Sheet GalvanizedSteel (4’ by 8’ or cut)
Sheet GalvanizedSteel (4’ by 8’ or cut)
2 to 5 daysdependingon pre-cut
size
1 AccurshearAutomatedShear (P-3)
1 ManualNotcher (S-23)& 1 AutomatedNotcher (R-3)
3 Semi-AutoPunches
(S-1, S-2, & S-3)
1 ManualBrake (R-7)
& 1 AutomatedBrake (R-13)
1 AutomatedMachine (R-8)
1 AutomatedMachine (ACR)
1 Manual Table,1 Jig-less
Machine (R12),& 1 Jig Machine
(R1)
Specialty Punch
C/T = 2 min.C/O = N/ARel. = 99%
0 Operators
2 min.
4 Semi-AutoPunches
In StraightPanel Dept.
Lean & Six Sigma Techniques UsedLean & Six Sigma Techniques Used
Value Stream MappingValue Stream Mapping
Process flow diagramsProcess flow diagrams
Setup time AnalysisSetup time Analysis
Quality Data Collection & Analysis Quality Data Collection & Analysis (Reduce Reject Rate & Variability)(Reduce Reject Rate & Variability)
Rack
1 MaterialHandler
C/T = N/AC/O = N/ARel. = 100%
Radius & Band
C/T = 8 min.(average)
C/O = 2 to 30min.
Reject rate = 5%Rel. = 80%
to 100%
2 Operators
8 min.
1 Manual Table,1 Jig-less
Machine (R12),& 1 Jig Machine
(R1)
Improve reliability and changeovercapability of R1 and R12 machines.Reduce panel reject rate.
Work to 1 to 2 days lead time
INITIAL IMPROVEMENT CONCEPTS
2 to 5 Working Days,Lead Time
6 Foot Long Custom Radius Panel Fabrication
Partially finished panels are stocked insixteen different configurations. Panelsare finished to order. Work is done inthree different areas as noted.
RawMaterial Stock
14 Ga. Galvanized Steel(pre-cut 53-15/16” by 6’3-15/16” sheets)
Notch& Punch(TrumpfMachine)
Ship
Bend& Stake
Add Z Brace(s)(if required)
Label
Radius& Band
(R12 - JiglessMachine)WIP Stock
16 Different Panelswith Various Cutouts
Trumpf Area
Custom Panel Dept.
Straight Panel Dept.
PanelMaterial
Rack
RawMaterial Stock
11 Ga. Galvanized Steel(4’ by 8’ standard sheets)
Shear& Cut
BandMaterial
DON'T MEETCURVATURETEMPLATE
REQUIREMENTS ATSETUP
(4' & 6' RADIUSPANELS)
OPERATORS MEASUREMENT
EQUIPMENT
MATERIAL(PANELS, STEEL)
NO SPECS
SET UP VALUESCHANGE
MAINTENANCECHANGESSETTINGS
OPEATORPREFERENCE
NO TRUST ANGLES
SEGMENTLENGTH
LOCATION PANEL OFSPECIALTY PUNCHES
ON PANEL
NO SPECSPUNCHLOCATION
VARIES
STRAIGHT PANEL
DIFFERENTSTEEL PROPERTIES
GALVINIZED COATINGDIFFERENT ON
PANELS
SURFACE FINISHVARIES
YIELD STRENGTH VARIES
PLATETHICKNESS
VARIES HOT VS COLD ROLL
COATINGVARIES
NO SPECS
PANEL NOTCH POSITIONVARIES
MOUNTINGWRONG
POOR TRANSDUCERSELECTION
INDEXES VARY
CRUDE INDEXSYSTEM DESIGN
AIR CYLINDEROPPOSING
HYDRAULIC INHEAD
ASSEMBLY
NOTCH O.D.SPACING VARIES.09 IN
AIR PRESSURE LOW
MAINTENANCE
BADBEARINGSON LOWERFORMING
TOOL
POOR MAINT
RADIUS VARIESSIDE TO SIDE
NO SPECS 3 SUPPLIERS
DIFFERENTEQUIPMENT
USED
UNDERSTANDING ROOT CAUSES of R12 PROBLEMSCAUSE AND EFFECT DIAGRAM
Red = Most Important Causes
NO SPECS
NO DIMENSIONAL SPECS OR TOLERANCES
RADIUS TEMPLATEACCURACY
DIFFERENTMEASURES USED ON
R1 & R12
DIFFERENT SETUPPROCEDURES
OPERATORJUDGEMENT RADIUS
USE OF AIR vs.HYDRAULICS
SPECIALTY PUNCH
WIDTH OF STEEL BETWEENNOTCHES VARIES 3.75 to 4.0 in.
ACROSS RADIUS
3 SUPPLIERS
3 SUPPLIERS
INDEXES VARY
PANEL WIDTH VARIES
SHEET DIMENSIONSVARY
PANELS CATCH ATLAST 2 BENDS
CONVEYOR NOTADJUSTED
PANEL NOTSQUARE. wIDTH
TOO LARGE
PANELSQUARENESS
DIGITAL READOUTUSELESS
BACKING SHOEADJ.USTMENT.
BANDS HAVECAMBER
3 SUPPLIERS
INACCURATECUTTING
Process Improvements Separating Process & Machine Issues
Process Improvements Separating Process & Machine Issues
Common setup procedureCommon setup procedureReplace measurement gagesReplace measurement gagesEstablished process capabilityEstablished process capabilityImplemented process controls for Implemented process controls for panel dimensionspanel dimensionsIdentified Identified realtimerealtime data data requirementsrequirementsCompleted identified maintenance Completed identified maintenance actionsactionsImplemented PM programImplemented PM program
Why Lean Automation?Why Lean Automation?
““After implementing lean After implementing lean improvements such as cellular improvements such as cellular
manufacturing and setup reduction, manufacturing and setup reduction, selective automation can add value selective automation can add value
and reduce human variability.and reduce human variability.””
Richard Richard SchonbergerSchonberger, June 2002, June 2002
New Radius Bending Machine R13New Radius Bending Machine R13• Automated band cuttingAutomated band cutting•• Servo driven adjustments from Servo driven adjustments from
panel bar codes panel bar codes
•• Online radius Online radius measurement and measurement and trackingtracking
R13 Capabilities After Lean Six Sigma R13 Capabilities After Lean Six Sigma
Operates as a cellOperates as a cellRuns two product familiesRuns two product familiesChangeover in less than 5 Changeover in less than 5 sec. within and between sec. within and between product familiesproduct familiesCycle time reduced from 5 Cycle time reduced from 5 min. to 1.8 min.min. to 1.8 min.RealtimeRealtime auto check of each auto check of each panel with data collectionpanel with data collectionOperating at 6 sigmaOperating at 6 sigma
As lead time As lead time decreasesdecreases……………………....
the need for the need for realtimerealtime data data increasesincreases!!
Lean Six Sigma in the Fast Lane!Lean Six Sigma in the Fast Lane!
Automation Provides Realtime Data to Control Variation for Six Sigma
Automation Provides Realtime Data to Control Variation for Six Sigma
Enhances DefineEnhances Define--MeasureMeasure--AnalyzeAnalyze--ImproveImprove--Control Control methodology (DMAIC)methodology (DMAIC)
Online measurement of Online measurement of process parametersprocess parameters
Direct data input into Direct data input into control chartscontrol charts
Provide Provide realtimerealtime controls controls as control limits are as control limits are understoodunderstood
Process ControlProcess Control
R13 Process Controls & System StatusR13 Process Controls & System Status
Realtime Data Collection for Six Sigma Analysis
Diagnostics for Rapid Identification of Problems
Realtime Data From R13Realtime Data From R13Index Count V2022
Target Chord Height V2030
Top Chord Height V2046
Bot. Chord Height V2066
Delta Top / Bot. V2032
Top Dev. V2050
Bot. Dev. V2070
Bend Angle Offset V1610
Bend Angle Factor V1612
Bend Factor Top V1614
Bend Factor Bot. V1616
Panel Radius (Feet) V1706
Panel Length (Inches) V1710
Cycle Time V2014 Remarks
Template Dev. Top
Template 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
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 formula2 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'R3 14.051 14.008 13.748 0.259 -0.043 -0.302 0.000 1.325 0.781 0.880 4.000 75.375 131.74 14.051 14.014 13.803 0.211 -0.036 -0.248 0.000 1.325 0.781 0.880 4.000 75.375 131.65 14.051 13.960 13.652 0.307 -0.091 -0.398 0.000 1.325 0.781 0.885 4.000 75.375 132.46 14.051 14.055 13.844 0.211 0.005 -0.207 0.000 1.325 0.781 0.900 4.000 75.375 132.07 14.051 13.824 13.817 0.007 -0.227 -0.234 0.000 1.325 0.781 0.905 4.000 75.375 132.38 14.051 13.796 13.824 0.027 -0.254 -0.227 0.000 1.325 0.781 0.910 4.000 75.375 132.09 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 75.375 132.311 14.051 13.980 13.967 0.013 -0.070 -0.083 0.000 1.325 0.795 0.920 4.000 75.375 131.112 14.051 14.014 14.063 0.049 -0.036 0.013 0.000 1.325 0.795 0.920 4.000 75.375 131.313 14.051 13.980 13.960 0.020 -0.070 -0.090 0.000 1.325 0.795 0.920 4.000 75.375 130.914 14.051 14.137 14.214 0.077 0.086 0.163 0.000 1.325 0.800 0.925 4.000 75.375 132.615 14.051 14.117 14.173 0.056 0.066 0.122 0.000 1.325 0.800 0.925 4.000 75.375 129.216 14.051 14.137 14.152 0.015 0.086 0.102 0.000 1.325 0.800 0.925 4.000 75.375 131.017 14.051 14.103 14.118 0.015 0.052 0.067 0.000 1.325 0.798 0.922 4.000 75.375 133.018 14.051 14.089 14.097 0.008 0.039 0.047 0.000 1.325 0.798 0.922 4.000 75.375 131.419 14.051 14.178 14.104 0.074 0.127 0.054 0.000 1.325 0.798 0.922 4.000 75.375 131.020 14.051 14.144 14.173 0.029 0.093 0.122 0.000 1.325 0.797 0.921 4.000 75.375 132.621 14.051 14.130 14.104 0.026 0.079 0.054 0.000 1.325 0.797 0.921 4.000 75.375 131.022 14.051 14.076 14.097 0.022 0.025 0.047 0.000 1.325 0.797 0.921 4.000 75.375 130.923 14.051 14.123 14.070 0.053 0.073 0.019 0.000 1.325 0.797 0.921 4.000 75.375 3.924 14.051 14.069 14.043 0.026 0.018 -0.008 0.000 1.325 0.797 0.921 4.000 75.375 136.525 14.051 14.089 14.070 0.019 0.039 0.019 0.000 1.325 0.797 0.921 4.000 75.375 0.026 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 broken27 14.051 14.096 14.022 0.074 0.045 -0.029 0.000 1.325 0.797 0.921 4.000 75.375 136.928 14.051 14.089 14.097 0.008 0.039 0.047 0.000 1.325 0.797 0.921 4.000 75.375 131.329 14.051 14.082 14.111 0.029 0.032 0.060 0.000 1.325 0.797 0.921 4.000 75.375 131.230 14.051 14.117 14.152 0.036 0.066 0.102 0.000 1.325 0.797 0.921 4.000 75.375 131.331 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
How Do We Use Lean Six Sigma Techniques
How Do We Use Lean Six Sigma How Do We Use Lean Six Sigma TechniquesTechniques
Get Management commitmentGet Management commitmentAssess the operation using a Value Stream Assess the operation using a Value Stream Map Map (Product families & Production data)(Product families & Production data)
Identify lean improvements & Identify lean improvements & kaizenskaizenswithout automation without automation Implement lean improvements using VSM Implement lean improvements using VSM planplanIdentify processes requiring Six Sigma Identify processes requiring Six Sigma analysisanalysisAnalyze, eliminate, and control variationAnalyze, eliminate, and control variationStart the cycle again!Start the cycle again!
Lean Six SigmaLean Six Sigma
Operating costs
Process speed(lead time)
Inventory & invested capital
Quality
Customer satisfaction
Operating flexibility
Methodology that Methodology that maximizesmaximizes shareholder value shareholder value by achieving the by achieving the fastest rate of improvementfastest rate of improvement inin……....
Contact InformationContact Information
Advent Design CorporationAdvent Design CorporationCanal Street and Jefferson Ave.Canal Street and Jefferson Ave.
Bristol, PA 19007Bristol, PA 19007
www.adventdesign.comwww.adventdesign.com800800--959959--03100310
Frank Garcia, Director Planning & Frank Garcia, Director Planning & ProducttvityProducttvityfrank.garcia@[email protected]
Advent Design Corporation
925 Canal StreetBristol PA, 19007
(P) 215 781 0500(F) 215 781 0508
Bill Chesterson
Tom Lawton
Frank Garciawww.adventdesign.com
CEO Automation & Product Design215 781 0500 Ext: [email protected]
PresidentContract Manufacturing215 781 0500 Ext: [email protected]
DirectorPlanning & Productivity215 781 0500 Ext: [email protected]