Integrating Six Sigma and Lean        Manufacturing  The Challenges & Benefits          Frank Garcia   ADVENT DESIGN CORPO...
SIX SIGMA or LEAN   MANUFACTURINGNeed to lower costs & reduce lead time?                        •   Material flow is poor ...
Six Sigma or Lean Manufacturing?LEAN MANUFACTURING:Reduce Lead Time by eliminating waste in the Value Stream          Prov...
Six Sigma or Lean Manufacturing?LEAN MANUFACTURING: Flow Focused  Lean cannot bring a process under statistical controlSIX...
Integrating Six Sigma with Lean           ManufacturingIncreases customer satisfactionImproves profitability & competitive...
Lean Manufacturing SystemGoals are  Highest quality  Lowest cost  Shortest lead timeAchieved by eliminating waste in the v...
Definition of Value -AddedValue is added any time the product is physicallychanged towards what the customer is intendingt...
Value StreamThe value stream is the set of all thespecific actions required to bring aspecific product (good or service) t...
The EIGHT WastesInventory (more than one piece flow)Overproduction (more or sooner than needed)Correction (inspection and ...
Six Sigma SystemA defined management process and CTQgoal (3.4 ppm) 3 sigma is 66,807 ppm!Driven from the topFocused on Voi...
Uncovering Quality’s Hidden Costs                                Traditional                                 Traditional  ...
Six Sigma Variation ReductionProcess Variation Should be Less Than Specs    Variation Reduction is Cost Reduction
Six Sigma’s (σ) Focus: Reducing Variance“ You have heard us talk about                                          Reducingsp...
What is Six Sigma (σ) Quality?Population mean (μ)or average                                   One (1) σ represents        ...
Six Sigma System          Improving Profitability    A 1 Sigma Improvement Yields…..20% margin improvement12 to 18% increa...
Six Sigma Financial Impact Areas:          The Savings Categories1.   Cost Reduction (including     cost at standard and c...
Six Sigma System      A culture characterized by…..Customer centricity: What do they value?Financial resultsManagement eng...
Six Sigma Problem Solving Steps               Process                                           Breakthrough Define & Meas...
The DMAIC Cycle             Six Sigma In Action               SDCA     Measure &           Plan-Do-Study-Act   Define     ...
Six Sigma ToolsCheck Sheets: Checklists of what is to be accomplished,etc..Scatter Diagrams: A graphical representation be...
Six Sigma ToolsProcess Maps or Flowcharts: Graphical representation of aprocess or system showing process or producttransf...
Six Sigma Tools - Process Maps or                  FlowchartsWhat are the X’s (Input variables) at each processstep?What a...
Traditional Six Sigma Implementation- Who is                    Involved                                  Technical       ...
Six Sigma Information Flow
The Bad News:    Six Sigma Program: Implementation IssuesSome of the facts:80% of Six Sigma Implementations fail.Tradition...
Need for Six Sigma & Lean      External - Satisfying Customers…..Quality, Warranty, and CostCustomers Require Six SigmaCus...
Need for Six Sigma & LeanInternal - Improving Profitability through…..Operational Cost Reduction   Improve Productivity   ...
Lean Six Sigma Model
You Can Apply Six Sigma Techniques to Complement               Existing Lean Capabilities                      Lean Traini...
Lean Six Sigma Implementation   Historical Implementation ProblemsOnly Six Sigma or Lean Implemented - big$ savings but mo...
Lean Six Sigma Implementation           Some Solutions…….Need to implement in the correct orderPolicy deployment to align ...
The Lean Six Sigma Strategy  Lean 6σ is a CHANGE STRATEGY for accelerating improvements in processes,products, and service...
Lean and the 6 σ Structure FULL TIMECOMMITMENT               Problem solver, Teacher, Mentor. Expert in                   ...
Why Not Rent a Belt (Black, Yellow or Green) Pay  for only What You Need to Solve Real Business                   Problems...
How Do We Use Lean Six Sigma Techniques    Get Management commitment    Assess the operation & understand the    Process u...
The Lean Six Sigma Cycle               VSMCommitment &         Recommended      Set Up Assessment            Solutions    ...
Understanding the Process: The 1st Step and Foundation of                                st                    Lean Six Si...
Value Stream Map              An Assessment ToolThe value stream map follows the productionpath from beginning to end and ...
Using the Value Stream Mapping Tool product family  current state   Understanding how the shop floor    drawing       curr...
Value Stream Map Concept             Orders   Production            OrdersSuppliers                                       ...
Value Stream Map (Current State)                                                                                         O...
Value Stream Map (Future State)                                                                                           ...
Questions to Ask About the Value             StreamIs the step valuable?Is the step capable?Is the step available?Is the s...
Lean Manufacturing      Concepts & TechniquesFlow: Setup Reduction, CellularManufacturing, Batch Size Reduction,Visual Wor...
Road Map to Lean Six SigmaLean to improve flow and reduce inventory & lead timeSix Sigma for Process Variation in Value St...
Low Productivity         Electrical Device Assembly         The Challenge in Two StepsClient wanted wavesoldering and robo...
Lean Six Sigma Techniques UsedProcess mappingCellular Manufacturing & LayoutBalance Cycle Times Between WorkStationsReduce...
Cellular Assembly Layout
WORKSTATION CYCLE TIME: 25sec., 1.25 min.                                                                                 ...
Lean Six Sigma ChangesCold staking fixturesPowered screwdriversLight test & SolderingfixturesQuality data trackingvia % de...
With Lean Six SigmaThe ResultsBalanced cell at 24 sec perwork stationTwo U-shaped cells3 piece flow1000 units/day per cell...
Reducing WIP & Improving Quality            Wire Extrusion & Finishing                  The ChallengeClient wanted to redu...
Lean Six Sigma Techniques UsedValue Stream MappingCellular Manufacturing & LayoutKanban Trigger Board5SQuality Data Collec...
Reducing Lead Time & Improving Quality              Steel Panel Fabrication                  The ChallengeClient wanted to...
Value Stream Map (Current State)                                                                                          ...
Lean & Six Sigma Techniques UsedValue Stream MappingProcess flow diagramsSetup time AnalysisQuality Data Collection & Anal...
INITIAL IMPROVEMENT CONCEPTSImprove reliability and changeovercapability of R1 and R12 machines.Reduce panel reject rate. ...
6 Foot Long Custom Radius Panel Fabrication                                 Trumpf Area                                   ...
UNDERSTANDING ROOT CAUSES of R12 PROBLEMS                                            CAUSE AND EFFECT DIAGRAM             ...
Process Improvements      Separating Process & Machine IssuesCommon setup procedureReplace measurement gagesEstablished pr...
Why Lean Automation?     “After implementing lean  improvements such as cellularmanufacturing and setup reduction,selectiv...
New Radius Bending Machine R13                    • Automated band cutting                    • Servo driven adjustments f...
R13 Capabilities After Lean Six SigmaOperates as a cellRuns two product familiesChangeover in less than 5sec. within and b...
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 SigmaEnhances Define-Measure-Analyze-Improve-Controlmethod...
R13 Process Controls & System Status                             Realtime Data Collection                              for...
Realtime Data From R13           Target      Top         Bot.                                       Bend         Bend     ...
How Do We Use Lean Six Sigma         TechniquesGet Management commitmentAssess the operation using a Value StreamMap (Prod...
Lean Six SigmaMethodology that maximizes shareholder valueby achieving the fastest rate of improvement in…..Customer satis...
Contact Information        Advent Design Corporation       Canal Street and Jefferson Ave.             Bristol, PA 19007  ...
Bill Chesterson   CEO                                         Automation & Product Design Advent Design                   ...
Integrating Six Sigma and Lean Manufacturing the Challenges & Benefits
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Integrating Six Sigma and Lean Manufacturing the Challenges & Benefits

  1. 1. Integrating Six Sigma and Lean Manufacturing The Challenges & Benefits Frank Garcia ADVENT DESIGN CORPORATION
  2. 2. SIX SIGMA or LEAN MANUFACTURINGNeed to lower costs & reduce lead time? • Material flow is poor • Error rate is high • Can’t deliver ontime • Equipment too slow
  3. 3. Six Sigma or Lean Manufacturing?LEAN MANUFACTURING:Reduce Lead Time by eliminating waste in the Value Stream Provides the Game Plan and PlaysSIX SIGMA:Reduce process variation Provides the Play by Play Analysis and Instant Replay
  4. 4. Six Sigma or Lean Manufacturing?LEAN MANUFACTURING: Flow Focused Lean cannot bring a process under statistical controlSIX SIGMA: Problem Focused Can not dramatically improve process speed or reduce invested capital NEED BOTH!
  5. 5. Integrating Six Sigma with Lean ManufacturingIncreases customer satisfactionImproves profitability & competitivepositionHas historical integration problemsRequires a different system modelRequires implementation & sustainingplans
  6. 6. Lean Manufacturing SystemGoals are Highest quality Lowest cost Shortest lead timeAchieved by eliminating waste in the valuestreamIndustry benchmark: Toyota ProductionSystem (TPS)TPS is applied I.E. and common sensePrinciple: organization supports the valueadder
  7. 7. Definition of Value -AddedValue is added any time the product is physicallychanged towards what the customer is intendingto purchase.Value is also added when a service is providedfor which the customer is willing to pay (i.e.design, engineering, etc.).If we are not adding value, we are adding cost orwaste. 90% of lead time is non-value added!
  8. 8. Value StreamThe value stream is the set of all thespecific actions required to bring aspecific product (good or service) throughthe critical management tasks of anybusiness: 1. Information Management 2. Transformation
  9. 9. The EIGHT WastesInventory (more than one piece flow)Overproduction (more or sooner than needed)Correction (inspection and rework)Material MovementWaitingMotionNon-Value Added ProcessingUnderutilized People
  10. 10. Six Sigma SystemA defined management process and CTQgoal (3.4 ppm) 3 sigma is 66,807 ppm!Driven from the topFocused on Voice of the CustomerA data analysis and problem solvingmethodologyStrong focus on variation reductionSupported by highly trained problemsolvers
  11. 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 LostEngineering 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. 12. Six Sigma Variation ReductionProcess Variation Should be Less Than Specs Variation Reduction is Cost Reduction
  13. 13. Six Sigma’s (σ) Focus: Reducing Variance“ You have heard us talk about Reducingspan, the “evil” variance our the variancecustomers feel in our response providesto their requests for betterdelivery, service or control offinancing.” the process. A process mean tells us how the process is performing while the variance gives us an indication of process control.
  14. 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% ofWith 6 σ Quality, approximately 3.4 items in a the populationpopulation of 1,000,000 items would be unacceptable.
  15. 15. Six Sigma System Improving Profitability A 1 Sigma Improvement Yields…..20% margin improvement12 to 18% increase in capacity12% reduction in number of employees10 to 30% reduction in capital Source: Six Sigma - Harry & Schroeder
  16. 16. Six Sigma Financial Impact Areas: The Savings Categories1. Cost Reduction (including cost at standard and costs not included in standard cost)2. Cost Avoidance (can be difficult to document)3. Inventory Reduction4. Revenue Enhancement5. Receivables Reduction
  17. 17. Six Sigma System A culture characterized by…..Customer centricity: What do they value?Financial resultsManagement engagement & involvementResource commitment: 1 to 3% of staff fulltimeExecution infrastructure: black & greenbelts, teams
  18. 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. 19. The DMAIC Cycle Six Sigma In Action SDCA Measure & Plan-Do-Study-Act Define Teams Analyze Benchmark Analysis toolsSDCA Management ID variability Commitment Employee Involvement Improve Design of Control Plan-Do-Study-Act Experiments SDCA = Standardize-Do-Check-Adjust
  20. 20. Six Sigma ToolsCheck Sheets: Checklists of what is to be accomplished,etc..Scatter Diagrams: A graphical representation between twomeasurements (variables).Fishbone or Cause and Effect Diagrams: Provides a startingpoint for problem analysis. Problems are diagrammed intocategories of Machinery, Material, Methods and Labor(Manpower).Pareto Charts: A method for organizing errors based on thenumber of errors created by a particular attribute (ex.Machine, Supplier, Product, Individual, etc.).
  21. 21. Six Sigma ToolsProcess Maps or Flowcharts: Graphical representation of aprocess or system showing process or producttransformation. In other words, what is being done, by whoand what choices are being made. Ideally process maps should include cycle times, defect information, etc.X-Y Matrix: A ranking method used to prioritize processinputs (X’s) to process outputs (Y’s).FMEA’s (Potential Failure Mode and Effects Analysis): Adetailed document which identifies ways in which a processor product can fail to meet critical requirements.
  22. 22. Six Sigma Tools - Process Maps or FlowchartsWhat are the X’s (Input variables) at each processstep?What are the Y’s (Output Variables) at each processstep?Remember Y = f (x) Remember Valued Added versus Non-Value Added Remember Cycle Times and Defects
  23. 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-Timeobstacles, reviews progress Commitment
  24. 24. Six Sigma Information Flow
  25. 25. The Bad News: Six Sigma Program: Implementation IssuesSome of the facts:80% of Six Sigma Implementations fail.Traditional Six Sigma implementations havelargely been attempted at large Fortune 500Companies due to the large investment inpeople, training and overall support.Training costs alone for a “wave” of 25people can cost $250,000 for this 4 to 6month training period. Training costs andpersonnel requirements can overwhelmmany smaller organizations.
  26. 26. Need for Six Sigma & Lean External - Satisfying Customers…..Quality, Warranty, and CostCustomers Require Six SigmaCustomers Require Lean ManufacturingCompetitors are implementing Lean & SixSigmaStaying in business
  27. 27. Need for Six Sigma & LeanInternal - Improving Profitability through…..Operational Cost Reduction Improve Productivity Reduce Scrap and Rework Reduce Inventory & WIPEngineering Design Cost ReductionDefine-Measure-Analyze-Design-Verify (DMADV) Stabilize & Quantify Process Capability Input for Product and Design Process
  28. 28. Lean Six Sigma Model
  29. 29. You Can Apply Six Sigma Techniques to Complement Existing Lean Capabilities Lean Training & Implementation VSM Six Sigma Analysis, Lean Waste Process ProblemTechniques Reduction variation Solving & Inventory Reduction Training & Control Supply Chain Management
  30. 30. Lean Six Sigma Implementation Historical Implementation ProblemsOnly Six Sigma or Lean Implemented - big$ savings but money left on the tableSeparate Six Sigma & Lean initiativescompeting for best resourcesDifficulty in sustaining the gain
  31. 31. Lean Six Sigma Implementation Some Solutions…….Need to implement in the correct orderPolicy deployment to align businessobjectives (Flow, Waste & VariationReduction)Focus on shop floor results, not classroom skillsExperienced teachers & coachesStandardized work to institutionalize thegains
  32. 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 improvedfinancial 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. 33. Lean and the 6 σ Structure FULL TIMECOMMITMENT 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. 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 JustifyFocused on Solving Companies’ ProblemsJoint Problem Solving and Knowledge/SkillTransferEasier to Meet Customer Mandates to UseLean Six Sigma TechniquesProvides Evolutionary Approach to Lean/SixSigma Implementation and Training
  35. 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. 36. The Lean Six Sigma Cycle VSMCommitment & Recommended Set Up Assessment Solutions Layout CellsContinuous VisualImprovement Variation Reduction Implementation Information DO IT! Plan Systems
  37. 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 tocontrol the outputs by controlling theinputs (those Critical to Quality orCTQ’s)
  38. 38. Value Stream Map An Assessment ToolThe value stream map follows the productionpath from beginning to end and shows a visualrepresentation of every process in the materialand information flowsShows how the shop floor currently operatesFoundation for the future state
  39. 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. 40. Value Stream Map Concept Orders Production OrdersSuppliers Customers Control Schedules I Process I Equipment Raw Cycle Finished Materials Times Goods Change Over Reliability Error Rate Lead Time File: VSM-A1
  41. 41. Value Stream Map (Current State) Orders Every 2 Weeks Production Control New Jersey Randomly PlacedAndrea 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. 42. Value Stream Map (Future State) Orders Every Week New Jersey Randomly PlacedAndrea 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. 43. Questions to Ask About the Value StreamIs the step valuable?Is the step capable?Is the step available?Is the step adequate (capacity)?Is the step flexible?
  44. 44. Lean Manufacturing Concepts & TechniquesFlow: Setup Reduction, CellularManufacturing, Batch Size Reduction,Visual Workplace, LayoutPull: Kanban Systems, Supply ChainManagement, Point of UsePerfection: Quality Systems includingvariation reduction, Training
  45. 45. Road Map to Lean Six SigmaLean to improve flow and reduce inventory & lead timeSix 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
  46. 46. Low Productivity Electrical Device Assembly The Challenge in Two StepsClient wanted wavesoldering and robotic pickand placeFunctional operationallayoutReject rate 5 to 8%Extensive material stagingNo spaceInitially, 13 people inAurora cellLow output: 300 units/day
  47. 47. Lean Six Sigma Techniques UsedProcess mappingCellular Manufacturing & LayoutBalance Cycle Times Between WorkStationsReduce Batch Size & parts stagingQuality Data Collection & Analysis(Reduce Reject Rate)
  48. 48. Cellular Assembly Layout
  49. 49. 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 ATTACH1 PLACEMENT TEST PCBs SOLDER LABEL STRAP & ATTACH STRAP STRAP INSERTTEST LED REJECT SWITCHPCBs 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
  50. 50. Lean Six Sigma ChangesCold staking fixturesPowered screwdriversLight test & SolderingfixturesQuality data trackingvia % defect controlchart (p chart)
  51. 51. With Lean Six SigmaThe ResultsBalanced cell at 24 sec perwork stationTwo U-shaped cells3 piece flow1000 units/day per cell vs3006 people per cell vs 13Faster identification ofquality problemsOperating at 5 to 6 sigmaBetter teamworkNo backlog
  52. 52. Reducing WIP & Improving Quality Wire Extrusion & Finishing The ChallengeClient wanted to reduce WIPby 50%Extrusion rejects (7%)Material flow problemsLittle data collection
  53. 53. Lean Six Sigma Techniques UsedValue Stream MappingCellular Manufacturing & LayoutKanban Trigger Board5SQuality Data Collection & Analysis(Reduce Reject Rate)
  54. 54. Reducing Lead Time & Improving Quality Steel Panel Fabrication The ChallengeClient wanted to reducelead time to less than oneweekAutomated equipment hadbeen installed but hadproblemsPanel rejects & rework (5%)Material flow problemsFew process controls ordata collection
  55. 55. 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 Operatorsdepending Handleron 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
  56. 56. Lean & Six Sigma Techniques UsedValue Stream MappingProcess flow diagramsSetup time AnalysisQuality Data Collection & Analysis(Reduce Reject Rate & Variability)
  57. 57. INITIAL IMPROVEMENT CONCEPTSImprove reliability and changeovercapability of R1 and R12 machines.Reduce panel reject rate. Radius & BandWork 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
  58. 58. 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.
  59. 59. 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 DONT 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 COATINGINDEXES 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 SUPPLIERSAIR CYLINDER PANELS CATCH AT OPPOSING LAST 2 BENDSHYDRAULIC 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
  60. 60. Process Improvements Separating Process & Machine IssuesCommon setup procedureReplace measurement gagesEstablished process capabilityImplemented process controls forpanel dimensionsIdentified realtime datarequirementsCompleted identified maintenanceactionsImplemented PM program
  61. 61. Why Lean Automation? “After implementing lean improvements such as cellularmanufacturing and setup reduction,selective automation can add value and reduce human variability.” Richard Schonberger, June 2002
  62. 62. New Radius Bending Machine R13 • Automated band cutting • Servo driven adjustments from panel bar codes• Online radius measurement and tracking
  63. 63. R13 Capabilities After Lean Six SigmaOperates as a cellRuns two product familiesChangeover in less than 5sec. within and betweenproduct familiesCycle time reduced from 5min. to 1.8 min.Realtime auto check of eachpanel with data collectionOperating at 6 sigma
  64. 64. Lean Six Sigma in the Fast Lane!As lead time decreases………….. the need for realtime data increases!
  65. 65. Automation Provides Realtime Data to Control Variation for Six SigmaEnhances Define-Measure-Analyze-Improve-Controlmethodology (DMAIC)Online measurement of Process Controlprocess parametersDirect data input intocontrol chartsProvide realtime controlsas control limits areunderstood
  66. 66. R13 Process Controls & System Status Realtime Data Collection for Six Sigma AnalysisDiagnostics for RapidIdentification of Problems
  67. 67. Realtime Data From R13 Target Top Bot. Bend Bend Bend Bend Panel PanelIndex Chord Chord Chord Delta Top Angle Angle Factor Factor Radius Length CycleCount Height Height Height / Bot. Top Dev. Bot. Dev. Offset Factor Top Bot. (Feet) (Inches) Time Template TemplateV2022 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 75.375 131.2Log 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 3R 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
  68. 68. How Do We Use Lean Six Sigma TechniquesGet Management commitmentAssess the operation using a Value StreamMap (Product families & Production data)Identify lean improvements & kaizenswithout automationImplement lean improvements using VSMplanIdentify processes requiring Six SigmaanalysisAnalyze, eliminate, and control variationStart the cycle again!
  69. 69. Lean Six SigmaMethodology that maximizes shareholder valueby achieving the fastest rate of improvement in…..Customer satisfaction Operating costs Process speed(lead time) Inventory & invested capital Quality Operating flexibility
  70. 70. Contact Information Advent Design Corporation Canal Street and Jefferson Ave. Bristol, PA 19007 www.adventdesign.com 800-959-0310Frank Garcia, Director Planning & Producttvity frank.garcia@adventdesign.com
  71. 71. 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.comwww.adventdesign.com Frank Garcia Director Planning & Productivity 215 781 0500 Ext: 207 frank.garcia@adventdesign.com
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