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Integrating Six Sigma and Lean Manufacturing The Challenges

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Integrating Six Sigma and Lean Manufacturing The Challenges & Benefits ADVENT DESIGN CORPORATION SIX SIGMA or LEAN MANUFACTURING Need to lower costs & reduce lead time? – PowerPoint PPT presentation

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Title: Integrating Six Sigma and Lean Manufacturing The Challenges


1
Integrating Six Sigma and Lean Manufacturing The
Challenges Benefits
  • ADVENT DESIGN CORPORATION

2
SIX SIGMA or LEAN MANUFACTURINGNeed to lower
costs reduce lead time?
  • Material flow is poor
  • Error rate is high
  • Cant 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 Instant Replay and Play
by Play Analysis
4
Six Sigma or Lean Manufacturing?
LEAN MANUFACTURING Lean cannot bring a
process under statistical control
SIX SIGMA 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
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!
7
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

8
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

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
  • A data analysis and problem solving methodology
  • Strong focus on variation reduction
  • Supported by highly trained problem solvers

11
Six Sigma Variation Reduction
Process Variation Should be Less Than Specs
Variation Reduction is Cost Reduction
12
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
13
Six Sigma System
A culture characterized by..
  • Customer centricity What do they value?
  • Financial results
  • Management engagement involvement
  • Resource commitment 1 to3 of staff full time
  • Execution infrastructure black green belts,
    teams

14
The DMAIC Cycle
Six Sigma In Action
SDCA
Define
Measure Analyze
Plan-Do-Study-Act Teams Benchmark Analysis
tools ID variability
Management Commitment
SDCA
Employee Involvement
Improve Plan-Do-Study-Act
Control
Design of Experiments
SDCA Standardize-Do-Check-Adjust
15
Six Sigma Information Flow
16
Need for Six Sigma Lean
External - Satisfying Customers..
  • Quality, Warrant, Cost
  • Customers Require Six Sigma
  • Customers Require Lean Manufacturing
  • Competitors are implementing Lean Six Sigma
  • Staying in business

17
Need for Six Sigma Lean
Internal - Improving Profitability..
  • Operational Cost Reduction
  • Improve Productivity
  • Reduce Scrap and Rework
  • Reduce Inventory WIP
  • Engineering Design Cost Reduction
  • Stabilize Quantify Process Capability
  • Input for Product and Design Process

18
Lean Six Sigma Model
19
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

20
Lean Six Sigma Implementation
Some Solutions.
  • Need to implement in the correct order
  • Policy deployment to align business objectives
  • Focus on shop floor results, not class room
    skills
  • Experienced teachers coaches
  • Standardized work to institutionalize the gains

21
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 Identify processes requiring Six Sigma
    analysis
  • Analyze, eliminate, and control variation
  • Start the cycle again!

22
The Lean Six Sigma Cycle
VSM
Commitment Assessment
Recommended Solutions
Set Up Layout Cells Visual
Continuous Improvement
Variation Reduction
Implementation Plan
DO IT!
Information Systems
23
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

24
Using the Value Stream Mapping Tool
product family
current state drawing
Understanding how the shop floor currently
operates. The foundation for the future state.
future state drawing
Designing a lean flow
plan and implementation
25
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26
Value Stream Map (Current State)
Orders Every 2 Weeks
Production Control
New Jersey Porcelain (Round Stones)
Randomly Placed Orders (Various Sizes)
Various Customers
Andrea Aromatics (Scented Oils)
Alanx (Shaped Stones)
Order as Needed
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 Every 2 Weeks
59,000 Stones Every 2 Weeks
50,000 Stones Every 2 Months (via stringer)
Bi-Weekly Production Schedule
Daily Shipping Orders
Daily Shipments
Existing Work Cell
Soak Dry
Packaging
Labeling
Case Packing
Cartoning
Shipping
APAI Automatic Stapler
Ameripack Flow Packager
Manual
Manual
Multiple Batch Tanks
I
I
I
I
I
I
up to 250 stones in WIP
0
0
1 Operator
1/2 Operator
1 Operator
1 Operator
1/2 Operator
125 Cans of Oil 20,640 Round Stones 49,000 Shaped
Stones
4290 Stones
90,504 Stones
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/A Rel. 100
C/T 2 sec. C/O N/A Rel. 100
11.6 Days
0.7 Days
15.1 days
27.4 Days Lead Time 65 minutes, 7 seconds
Value-Added Time
65 min.
7 seconds
27
Value Stream Map (Future State)
Orders Every Week
Production Control
New Jersey Porcelain (Round Stones)
Randomly Placed Orders (Various Sizes)
Various Customers
Andrea Aromatics (Scented Oils)
Alanx (Shaped Stones)
Monthly Order
Average of 6,000 Stones per Day in Various
Size Orders (8 to 20 case 200 to 400 case range
mainly)
Bi-Weekly Production Schedule (large orders)
12 to 16 Cans of Oil Once a Week
30,000 Stones Once a Week
25,000 Stones Once a Month (via stringer)
Daily Shipping Orders
Daily Shipments
4 Cases
Existing Work Cell
Soak Dry
Packaging
Labeling
Case Packing
Cartoning
Shipping
APAI Automatic Stapler
Ameripack Flow Packager
Manual
Manual
Multiple Batch Tanks
I
I
I
I
I
up to 250 stones in WIP
0
0
1 Operator
1/2 Operator
1 Operator
1 Operator
1/2 Operator
75 Cans of Oil 40,000 Round Stones 25,000 Shaped
Stones
4290 Stones
30,000 Stones in a supermarket type
arrangement with stocking levels by shape and
scent
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/A Rel. 100
C/T 2 sec. C/O N/A Rel. 100
Increase Reliability
10.8 Days
0.7 Days
5.0 days
16.5 Days Lead Time 65 minutes, 7 seconds
Value-Added Time
65 min.
7 seconds
28
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?

29
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30
Lean ManufacturingConcepts 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

31
Road Map to Lean Six Sigma
32
Low Productivity Electrical Device AssemblyThe
Challenge in Two Steps
  • Client wanted wave soldering and robotic pick and
    place
  • Functional operational layout
  • Ergonomic problems
  • Extensive material staging
  • No space
  • Initially, 13 people in Aurora cell
  • Low output 300 units/day

33
Lean Six Sigma Techniques Used
  • Process flow diagrams
  • Cellular Manufacturing Layout
  • Balance Cycle Times Between Work Stations
  • Reduce Batch Size parts staging
  • Quality Data Collection Analysis (Reduce Reject
    Rate)

34
Cellular Assembly Layout
35
Cell Changes
REJECT DATA
AFTER CHANGES WORKSTATION CYCLE TIME 25sec.,
1.25 min. PER 3 UNITS
TEST SAMPLES
4
1
2
3
5
6
ATTACH BACK COVER, STAKE STRAP ATTACH STRAP
ASSEMBLY 1 COLD STAKE TEST PCBs
CONTACTS ASSEMBLY SOLDER
BUTTON BATTERY ASSEMBLY LABEL
GLUE SWITCH/ ATTACH STRAP
PACK
PCBs from supplier
INSERT SWITCH ACTIVATOR
REJECT DATA
36
Lean Six Sigma Changes
  • Cold staking fixtures
  • Powered screw drivers
  • Light test Soldering fixtures
  • Quality data tracking via defect control chart
    (p chart)

37
With Lean Six SigmaThe 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

38
Reducing Lead Time Improving Quality Steel
Panel FabricationThe Challenge
  • Client wanted to reduce lead time to less than
    one week
  • Automated equipment had been installed but had
    problems
  • Panel rejects rework
  • Material flow problems
  • Few process controls or data collection

39
Value Stream Map (Current State)
Blanket Annual Purchase Order with Daily Releases
Production Control (normally working 24 to 48
hours ahead of promised shipment)
Randomly Placed Orders (normally single unit
orders)
Various Distributors ( 24 for Smith Corp.
6 for Jones Systems
Sheet Galvanized Steel (4 by 8 or cut)
Sheet Galvanized Steel (4 by 8 or cut)
Sheet Galvanized Steel (4 by 8 or cut)
Sheet Galvanized Steel (4 by 8 or cut)
Average volume of 1000 systems per month in
peak season. Customers are mainly distributors.
There are a few dealers.
Daily Production Reports
Daily Production Reports
Up to an average of 130,000 lbs daily in
peak season
Daily Shipping Schedule
Daily Shipments
In Straight Panel Dept.
Shear
Notch
Corner Punch
Stake Label
Bend
Shipping
Add Z Brace
Rack
Specialty Punch
Radius Band
1 Accurshear Automated Shear (P-3)
1 Manual Notcher (S-23) 1 Automated Notcher
(R-3)
3 Semi-Auto Punches (S-1, S-2, S-3)
1 Manual Brake (R-7) 1 Automated Brake (R-13)
1 Automated Machine (R-8)
1 Automated Machine (ACR)
1 Manual Table, 1 Jig-less Machine (R12), 1
Jig Machine (R1)
4 Semi-Auto Punches
I
1 Material Handler
2 to 5 days depending on pre-cut size
1 Operator
1/2 Operator
1 Operator
2 Operators
1/2 Operator
1/2 Operator
1/2 Operator
2 Operators
0 Operators
C/T 4 min. C/O N/A Rel. 99
C/T 2 min. C/O 4 min Rel. 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
C/T 7 min. C/O N/A Rel. 98 to
99
C/T N/A C/O N/A Rel. 100
C/T 2 min. C/O N/A Rel. 99
C/T 8 min. (average) C/O 2 to 30
min. Rel. 80 to 100
2 to 5 Working Days, Lead Time 32
minutes, Value-Added Time
2 to 5 days
4 min.
2 min.
2 min.
5 min.
2 min.
7 min.
8 min.
2 min.
40
Lean Six Sigma Techniques Used
  • Value Stream Mapping
  • Process flow diagrams
  • Setup time Analysis
  • Quality Data Collection Analysis (Reduce Reject
    Rate Variability)

41
INITIAL IMPROVEMENT CONCEPTS
Improve reliability and changeover capability of
R1 and R12 machines. Reduce panel reject
rate. Work to 1 to 2 days lead time
Radius Band
1 Manual Table, 1 Jig-less Machine (R12), 1
Jig Machine (R1)
Rack
1 Material Handler
2 Operators
C/T N/A C/O N/A Rel. 100
C/T 8 min. (average) C/O 2 to 30
min. Rel. 80 to 100
2 to 5 Working Days, Lead Time
8 min.
42
6 Foot Long Custom Radius Panel Fabrication
Trumpf Area
Straight Panel Dept.
Notch Punch (Trumpf Machine)
Panel Material
Bend Stake
Add Z Brace(s) (if required)
Raw Material Stock
14 Ga. Galvanized Steel (pre-cut 53-15/16 by
63-15/16 sheets)
Radius Band (R12 - Jigless Machine)
Ship
Label
Rack
WIP Stock
16 Different Panels with Various Cutouts
Custom Panel Dept.
Band Material
Shear Cut
Raw Material Stock
Partially finished panels are stocked in sixteen
different configurations. Panels are finished to
order. Work is done in three different areas as
noted.
11 Ga. Galvanized Steel (4 by 8 standard
sheets)
7/19/02
43
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44
Process ImprovementsSeparating 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

45
New Radius Bending Machine R13
  • Automated band cutting
  • Servo driven adjustments from panel bar codes
  • Online radius measurement and tracking

46
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

47
Automation Provides Realtime Data to Control
Variation for Six Sigma
  • Enhances Define-Measure-Analyze-Improve-Control
    methodology (DMAIC)
  • Online measurement of process parameters
  • Provide realtime controls as limits are
    understood

Process Control
48
R13 Process Controls System Status
Realtime Data Collection for Six Sigma Analysis
Diagnostics for Rapid Identification of Problems
49
Realtime Data From R13
50
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 Identify processes requiring Six Sigma
    analysis
  • Analyze, eliminate, and control variation
  • Start the cycle again!

51
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
52
Contact Information Advent Design
Corporation Canal Street and Jefferson
Ave. Bristol, PA 19007 www.adventdesign.com 800-9
59-0310 Frank Garcia, Director Engineering
Services frank.garcia_at_adventdesign.com Dean
Hammond, Sales Manager dean.hammond_at_adventdesign.c
om
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