The document provides 12 examples of Lean Six Sigma projects that resulted in cost savings through process improvements. The first example describes a project that increased production capacity of HVAC duct elbows by designing a one-man cell to run three semi-automatic machines simultaneously, achieving annual savings of $472k. Another project reduced robot welding setup time from 38 minutes to zero by designing modular fixtures, achieving annual savings of $650k. A third project converted batch production to continuous flow, increasing shift capacity by 82% and eliminating the need for overtime.

1. JULIAN KALAC LEAN SIX SIGMA PROJECTS 13-Jan-2016
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Examples of Lean Six Sigma Cost Saving Improvements
1. HVAC DUCTING PRODUCTION CAPACITY INCREASE
DP largest unit production item are elbows (Galvanized, HVAC Duct Elbow)
Current capacity = 2.1 million elbows per year ( 2 shifts 5days + 2days OT)
Current demand has increased to 2.5 million of them per year.
Three possible solutions to the capacity short fall problem.
current cost per elbow is $0.68
 Solution 1). add a third shift, cost per elbow $0.76
 Solution 2). outsource the 440,000 elbows, cost is $0.82
 Solution 3). Buy 3 new machines, cost to make is $0.62 with a payback in 1.3 years
Currently 1 operator runs 2 machines (manual labour intensive machines)
Improvement: Designed a 1 man cell to run 3 semi-auto machines simultaneously
The payback =1.3 years with annual savings of $472K ($0.08 cost/pc reduction )
New machines designed for quick changeover <10min vs current 25min (efficiency gains).
RESULTS:
1 MAN CELL 3 MACHINES REDUCED LABOUR COST BY
TOTAL ANNUAL SAVINGS AFTER PAYBACK = $472K IN COST/PC REDUCTION

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2. Robot Welding Setup Time Reduction ----Tier 1 Automotive ($650K/year savings
PROBLEM STATEMENT
2 station robot weld down 38min between changeovers, 6 changeovers/day = 3.8hrs downtime/day
 Current setup time= 38min
 Standard Time= 15min
 Target setup Time < 5min
IMPROVEMENTS:
 Designed 6 SIGMA modular welding fixtures, with quick connect clamps and eliminated bolts,
screws and
 combined tacking with robot welding into 1 operation
 Implemented SMED external setup and eliminated internal setup time
 Standardized welding fixtures, eliminated bolts, screws and
 implemented , 5S shadow board, tooling push-pin toggle clamps
RESULTS: ZERO SETUP TIME ACHIEVED
Robot 9 SMED SOP=ZERO SETUP TIME
SIDE A CHANGEOVER
step # Operation Est Time (min)
1 PREPARE NEXT WO MATERIAL 4
2 GET NEEDED FIXTURES/TOOLS/CLAMPS 3
3 UNLOAD LAST PARTS FROM SIDE 1 1
4 INSPECT AND TOUCH UP PARTS 2
5 TACK PARTS 2 (EXTERNAL SETUP)
6 TAKE DOWN FIXTURE FROM SIDE 1 4 BEING DONE
7 LOAD PARTS ONTO SIDE 1 1 WHILE ROBOT rUNNING
8 START WELDING SIDE 1 0
TOTAL TIME FOR SETUP= 16
WELD CYCLE STARTED = 8 T SETUP TIME CLOCK STARTS
AFTER 8 MIN
SIDE B CHANGEOVER
EXTERNAL SETUP
7 TAKE DOWN FIXTURE FROM SIDE 2 5 INCLUDED IN
8 LOAD PARTS ONTO SIDE21 1 WELD CYCLE (8MIN)
9 START WELDING SIDE 2 0
TOTAL SETUP TIME SIDE B= 6
TOTAL INTERNAL SETUP TIME= 0
TOTAL EXTERNAL SETUP TIME= 12
OLD SETUP TIME (MIN)= 38
DEC 4 SETUP (MIN) = 0
SETUP TIME IMPROVEMENT (MIN) = -38
WHILE THE ROBOT IS WELDING SIDE B, LOST TIME=0 MIN
GOAL IS TO CHANGE STATION A BEFORE ROBOT FINISHES WELDING SIDE B
DURING WELD CYCLE (8MIN) THE FOLLOWING WAS DONE

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3. Lean - Packaging Productivity Improvement ----Consumer Goods Packaging
 Converted Batch & Queue into continuous flow production which reduced total cycle time from
3 days to 12hrs/order
 Increased shift capacity by 82%
 Eliminated 3rd shift (14 operators + temps)
 Redesigned the layout into LEAN Flexible CELLS with cross functional trained workers,
rotation schedule to manage bottlenecks and 5S
 Reduced online “hidden rework” costs by 40% and implemented in-process checks to ensure
a “check and balance” system
 Reduced inventory by 30% ($1Mil inventory reduction) total operational savings over $742K
BEFORE LEAN MANUFACTURING
AFTER LEAN IMPLEMENTATION

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4. INJECTION MOULD SET-UP REDUCTION PROJECT --($500K/annual savings)
 Problem Statement: 22 injection moulds ranging from 93 weeks new to moulds over 10 years
old), varied in sizes & capacities, had set-up/changeover times from 4-6hrs, resulting over
$500K machine inefficiencies and productivity losses
 Objective: Reduce the set-up time from 6hrs to under 2hrs
 Significant Improvements: over 4.5hrs of Set-Up Time was reduced by the following
 IMPROVEMENTS:
o Implemented SMED principles, 5S SHADOW BOARDS, standardized, Set-Up
o New water manifolds with shorter hoses and different IN/OUT connectors
o Standardized bolt lengths and utilized quick-connect clamps
o Interchangeable inserts and standardized back plates with different hole pattern
o Standardized Mould kits & implemented shadow boards
o Documented SOP and validated set-up/changeover on different shifts
 These improvements resulted in over $500K annual savings
Setup/Changeover Tooling Improvements

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5. EATS LEAN TRANSFORMATION PROJECT ----Total Savings= $900K/year
Exhaust After Treatment System “EATS” Tier 1 Automotive Supplier to Volvo and Mack
Problem Statement
1. Product/design issues causing 30% Internal Quality reject rate , limiting throughput 8 sets/day
2. Unable to meet increased VOLVO demand 60 pcs/week, causing Volvo production 2 day
3. Unable to meet TAKT TIME < 3 days, Currently cycle time > 4 days,
Objective(s)
1. Improve Product quality by 80%, reduce reject rate from 42% to <5%
2. Reduce Lead time by 50% (from 4 to 2 days)
3. Productivity by 50%, from 8-12pcs/day
LEAN TRANSFORMATION RESULTS
1. Reduced quality reject rate from 30% down to 3%
2. Reduced total lead time from 4.5 down to < 2 days
3. Reduced total cycle time from 3Hrs to 0.7Hrs/pc
4. Reduced WIP from 33 pcs to 12pcs in < 2 weeks
EAST (Exhaust After Treatment System)

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6. PROGRESSIVE DIE STAMPING PRESS CAPITAL PROJECT
PROBLEM: Demand increased by 30%, requiring 1Mil units/year
Current capacity = 550,000 pcs/year , at peak season customer demands exceed machine capacity
High labour cost/pc = $1.28/pc
2 critical labour intensive operations are BOTTLENECKS preventing additional capacity
RE-Engineered Solution = Progressive Stamping Die
2 Operations
@ 1 TIME
1 Band Saw
2 Forming with 3 setups

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RESULTS
• Increased capacity by over 1,000,000 units/year (92%)
• Reduced labour cost by $0.59/pc
• 1.26 Payback period, ROI= 77%
• TOTAL ANNUAL SAVINGS AFTER PAYBACK= $990K/year

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7. LEAN LOGISTICS MANUFACTURING (DPM) AND DISTRIBUTION (NT) 2013-2014
Streamlined a complex Canada wide Manufacturing-Supply Chain-Logistics replenishment
operation, which reduced storage/transportation costs by $920K, inventory levels by $2.2Mil (from
$3.4Mil to $1.2Mil). Total Operational savings= $3.1Mil
Problem Statement:
Transportation Logistics from DP Manufacturing to NT Distribution centres inefficient. Customer same
day orders and replenishment being picked up from DP Manufacturing delivered to NT Distribution
Centre, then reloaded onto an outbound carrier resulting in either late deliveries, lost shipments or
delivered to wrong address, resulting in shortages 50%, high WIP levels and excessive transportation
costs.
Improvements:
 Implemented Lean Logistics using 1-step cross-docking distribution from DP to final
destination, which eliminated shortages, reduced delivery time from 4 days to < 1 day
 Integrated Manufacturing-Supply Chain with Warehouse Management System which reduced
total WIP inventory by $2Mil, eliminated 2 carriers, utilized same carrier for Inbound/Outbound
 Implemented Advanced shipping notice (ASN) which enabled Synchronized inbound delivery with
outbound shipments, bar code tracking with shipment RFID chips from supplier
NT DISTRIBUTION CENTERS
DP PRE-PAID CUSTOMERS

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8. BATCH MANUFACTURING CYCLE TIME REDUCTION
Problem:
1. Low Suite utilization 11%, causing capacity constraints with other products
2. Batch cycle time = 5 days per batch, customer Takt Time= 4 days/batch
Objective: Increase utilization and production capacity by 30% without additional capital
RESULTS:
 increased Final Yield by 19%,
 increased suite utilization from 11% to 62%, and
 Reduced total batch processing time from 5 to 3.5 days/batch (42%)
 Total Operational savings = $1.4Mil/year
 Project completion time= 3.5 months

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9. FCI AUTOMOTIVE – QS9001/ISO14000
NEW PROGRAM LAUNCH
 Successfully managed a $22M USD FORD/TRW new ABS/VSC program for 2005 FORD Windstar minivan,
from Design to full PPAP launch on-time & within budget.
 Took over a complex FORD program in jeopardy of being lost, gained the trust and credibility of FORD/TRW
Program managers and successfully PPAP launched the program on-time
 Successfully improved a previously strained customer relationship with honesty, integrity trust
 Developed a mandrel prototype concept for insert moulding 52 connector pins, 4 power blades, and 4 bushings
for the Automatic Breaking systems ABS & Vehicle System Control VSC CONNECTORS
 Developed & managed all APQP & PPAP documentation including: Design reviews, PFMEA DVP&R, SPC,
Control Plans, SOP, and production tooling design
 Developed automation specifications, RFQ, vendor selection, managed the design, build & installation of the
custom full-automated assembly line Total budget for automation worth over $2.3M USD
ABS & VCS Connector module

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PROCESS OPTIMIZATION USING SIX SIGMA DESIGN OF EXPERIEMNTS TO REDUCE CYCLE TIME
10. DOE Injection Moulding Cycle Time And Process Control Optimization
Problem Statement: Injection moulding tight tolerances and process control not established causing poor
process capability <1 cpk and High defect rate ->11%
Objective: Optimize process to reduce defect rate by 50%, and reduce cycle time using Design of Experiments
using 2-taguchi method
Results:
1. Defect rate reduced by 70% from 11% to < 2%,
2. reduced cycle time by 35% and
3. reduced material weight by 20%
4. Total savings = $530K in operational cost reductions

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11. LARGE FORMAT OPERATIONAL TRANSFORMATION - Printing/Packaging - 2015
Problem Statement -
• New Business unit -Large Format “LGF” department running at a loss for 2 years consecutively
• Current capacity 72 shipped items/day, Customer demand =100 items/day
• Currently Average lead time (LT)= 13 days , customer demand = 2-4 days
• New $2Mil equipment underutilized Overall Equipment Efficiency (OEE) = 37%
• Internal Quality Reject Rate = 42%, causing high rework, scrap rate = 33%
Objective(s):
 Increase LGF capacity from 72 to > 100 items/day without additional labour/capital equipment
 Reduce lead time from 13 to < 3 days
 Improve Gross Margin from -$30k/PD to +1K/PD, PD= month
Results:
 Increased capacity from 72 to 131 items/day –> (83%)
 Reduced lead time from 13 days to <1 day Implemented NEXT DAY delivery for all orders
 Increased Gross Margin from -$30K to +$35.6K/PD ($70K/month swing) $840K/year
 Transformed Large Format from cost centre into Profit centre and achieved

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12.BLACK CLAWSON EXTRUSION LAMINATOR SAFEGUARDING
 PROBLEM STATEMENT: Used Laminator purchased by company without proper safeguarding
and shut down by Ministry of Labour ordering a PSHR by a P.Eng
 OBJECTIVE: Design machine safeguarding to enable Laminator compliance with OHSA section
851 Industrial Establishments
LAMINATOR BEFORE PSHR
CRITICAL AREAS TO BE GUARDED