Foods Case Study
What to cover
Executive summary
Define Phase
Measure Phase
Analyze phase
Improve phase
Control Phase
Conclusion
1. Executive Summary
In December 2008, the company began to receive heavy surcharge from local authorities because of their poor water quality, mainly due to an excess of biological waste entering the sewer system.
Biological Oxygen Demand (BOD) The amount of oxygen needed by bacteria to decompose all the solid wastes in wastewater. Accounted for 74% of the resulting fees. The total bill for poor water quality reached $204,000 in 2009.
A six-sigma team was tasked to extremely reduce the BOD, after 6 months they reached 70% with a goal of 95%.
2. Define Phase
Project Charter
Project NameBOD Reduction at Kahiki FoodsCommencement DateSep, 2009Project SponsorKahiki FoodsCompletion DateDec, 2010Expected Hard Cost Reduction$195,000Expected % Reduction95%
Project Mission
The main objectives are:
Intense reduction in solid waste entering floor drains.
Increase output at different plant processes.
Green initiative for the organization.
$195,000 hard cost reduction.
Problem Statement
Per local authorities BOD levels shouldn’t exceed 250mg/L
Kahiki had BOD waste levels of 3864mg/L, 1546% higher than upper spec limit
The source of the waste was obviously originating from inefficient floor drain management
6
Goal Statement
At least a 50% BOD reduction in 6 months and establishing a sustainable system able of reaching the goal of 95% reduction.
Process map
SIPOC map
8
3. Measure Phase
The waste removal system doesn't meet the spec.
Process Capability Charts
Measurement Plan
Demand Analysis
Metrics Used To Determine Water Quality
Biological Oxygen Demand (BOD)
Total Suspended Solids (TSS)
Total Kjeldahl Nitrogen (TKN)
BOD Process Capability Charts
TSS Process Capability Charts
Measurement Plan
N/B In any area of concern, should there be a negative response on any unit, the unit is rendered incomplete and therefore a defect.
13
Data Collection Challenges
System changed in 2007.
Standard sampling schedule 3 site visits/year moved to monthly.
Data collection visibility most critical points came from cleanup shift.
The above assessment was done by five individuals who were, one hired external expert, two quality assurance officers at the state government, while two are community professionals. MSA is an experimental process and require more views from different quotas of different levels of understanding to make independent judgments on quality (McCarty, 2005).
14
4. Analyze Phase
5 Why Analysis.
FMEA.
Gap analysis.
Fishbone diagram.
Hotspot heat map.
Regression Analysis.
Benchmarking.
5 Why Analysis
Plant Floor Drain Hotspot Heat Map
5. Improve phase
Improved Solid/Liquid Separation.
Reducing Waste Creation.
Employee Training.
Best Practice Identification.
WAP Committee: A "Waste Awareness Program“.
Error Proofing: Adding visual S ...
Making the Case for QualityProcess Management Approach R.docxcroysierkathey
Making the Case for Quality
Process Management Approach
Reduces Scrap, Saves Alcoa Millions
• A team at Alcoa Power
and Propulsion sought
to improve product
quality, reduce waste and
inefficiency, and cut costs.
• To achieve these goals,
the team developed
and implemented a
structured process
management approach
across the business unit.
• By defining and then
standardizing key
processes, the unit
minimized variation,
shared best practices, and
sustained improvements.
• The project improved
customer satisfaction,
reduced costs of poor
quality, and saved
millions of dollars.
• The team was named
a finalist in ASQ’s
2015 International
Team Excellence
Awards competition.
At a Glance . . .
As Alcoa Power and Propulsion sought to minimize manufacturing process waste,
inefficiency, and related expenses, two key findings caught the attention of the
business unit’s executive leadership team. Customer satisfaction surveys revealed
60 percent of respondents held an unfavorable or neutral opinion of the unit, while
at the same time, internal quality measures revealed the business unit recorded the
highest levels of scrap in the organization for the year. The findings represented
a significant opportunity, but improvement would require rapid deployment in a
methodical, deliberate, and sustainable manner.
About Alcoa Power and Propulsion
Alcoa Power and Propulsion (APP), a unit of New York City-based Alcoa Inc., is divided into three
segments: structural castings and special products, industrial gas turbine airfoils, and aerospace airfoils.
This business unit serves the defense, energy, aerospace, and industrial markets, where its products
are used in military and commercial aircraft engines as well as power-generation turbines. Additional
products and services include molds, hot isostatic pressings, specialty coatings and tools, as well as
machinery. APP operates 25 production facilities around the world, employing more than 9,000 people.
Working to Improve Processes
The APP leadership team discovered scrap and rework issues were resulting in high customer claims
and delivery issues, therefore they sought solutions for significant reductions to scrap levels to improve
delivery, rework, and customer satisfaction. In the past, substantial scrap level decreases were thought
to be unattainable because casting is a particularly complex process (see the sidebar, The Investment
Casting Process, for more details) with many sources of variation.
In late 2011, APP’s quality focus shifted toward sustainable and continuous process improvement,
particularly at nine of the unit’s super alloy foundries (five in the United States, three in Western
Europe, and one in Japan). While these foundries were the starting point for the initiative because
they recorded the highest levels of scrap, the ultimate goal for APP was to create a sustainable solu-
tion for deployment at the plant level by mid-2012. The rig ...
Spend Analysis: What Your Data Is Telling You and Why It’s Worth ListeningSAP Ariba
Driving bottom line savings continues to top the wish list of the chief procurement officer’s agenda, yet the decision path to get there often relies on perceptions and intuition. Without the right visibility into spend data, suppliers, or related market information in hand, sourcing and procurement decisions often run counter to the business objectives. Gaining comprehensive visibility is the stepping stone to effective spend management. Join this session where experts share their secrets on striking it rich by listening to what their spend numbers have to say.
Foods Case Study
What to cover
Executive summary
Define Phase
Measure Phase
Analyze phase
Improve phase
Control Phase
Conclusion
1. Executive Summary
In December 2008, the company began to receive heavy surcharge from local authorities because of their poor water quality, mainly due to an excess of biological waste entering the sewer system.
Biological Oxygen Demand (BOD) The amount of oxygen needed by bacteria to decompose all the solid wastes in wastewater. Accounted for 74% of the resulting fees. The total bill for poor water quality reached $204,000 in 2009.
A six-sigma team was tasked to extremely reduce the BOD, after 6 months they reached 70% with a goal of 95%.
2. Define Phase
Project Charter
Project NameBOD Reduction at Kahiki FoodsCommencement DateSep, 2009Project SponsorKahiki FoodsCompletion DateDec, 2010Expected Hard Cost Reduction$195,000Expected % Reduction95%
Project Mission
The main objectives are:
Intense reduction in solid waste entering floor drains.
Increase output at different plant processes.
Green initiative for the organization.
$195,000 hard cost reduction.
Problem Statement
Per local authorities BOD levels shouldn’t exceed 250mg/L
Kahiki had BOD waste levels of 3864mg/L, 1546% higher than upper spec limit
The source of the waste was obviously originating from inefficient floor drain management
6
Goal Statement
At least a 50% BOD reduction in 6 months and establishing a sustainable system able of reaching the goal of 95% reduction.
Process map
SIPOC map
8
3. Measure Phase
The waste removal system doesn't meet the spec.
Process Capability Charts
Measurement Plan
Demand Analysis
Metrics Used To Determine Water Quality
Biological Oxygen Demand (BOD)
Total Suspended Solids (TSS)
Total Kjeldahl Nitrogen (TKN)
BOD Process Capability Charts
TSS Process Capability Charts
Measurement Plan
N/B In any area of concern, should there be a negative response on any unit, the unit is rendered incomplete and therefore a defect.
13
Data Collection Challenges
System changed in 2007.
Standard sampling schedule 3 site visits/year moved to monthly.
Data collection visibility most critical points came from cleanup shift.
The above assessment was done by five individuals who were, one hired external expert, two quality assurance officers at the state government, while two are community professionals. MSA is an experimental process and require more views from different quotas of different levels of understanding to make independent judgments on quality (McCarty, 2005).
14
4. Analyze Phase
5 Why Analysis.
FMEA.
Gap analysis.
Fishbone diagram.
Hotspot heat map.
Regression Analysis.
Benchmarking.
5 Why Analysis
Plant Floor Drain Hotspot Heat Map
5. Improve phase
Improved Solid/Liquid Separation.
Reducing Waste Creation.
Employee Training.
Best Practice Identification.
WAP Committee: A "Waste Awareness Program“.
Error Proofing: Adding visual S ...
Making the Case for QualityProcess Management Approach R.docxcroysierkathey
Making the Case for Quality
Process Management Approach
Reduces Scrap, Saves Alcoa Millions
• A team at Alcoa Power
and Propulsion sought
to improve product
quality, reduce waste and
inefficiency, and cut costs.
• To achieve these goals,
the team developed
and implemented a
structured process
management approach
across the business unit.
• By defining and then
standardizing key
processes, the unit
minimized variation,
shared best practices, and
sustained improvements.
• The project improved
customer satisfaction,
reduced costs of poor
quality, and saved
millions of dollars.
• The team was named
a finalist in ASQ’s
2015 International
Team Excellence
Awards competition.
At a Glance . . .
As Alcoa Power and Propulsion sought to minimize manufacturing process waste,
inefficiency, and related expenses, two key findings caught the attention of the
business unit’s executive leadership team. Customer satisfaction surveys revealed
60 percent of respondents held an unfavorable or neutral opinion of the unit, while
at the same time, internal quality measures revealed the business unit recorded the
highest levels of scrap in the organization for the year. The findings represented
a significant opportunity, but improvement would require rapid deployment in a
methodical, deliberate, and sustainable manner.
About Alcoa Power and Propulsion
Alcoa Power and Propulsion (APP), a unit of New York City-based Alcoa Inc., is divided into three
segments: structural castings and special products, industrial gas turbine airfoils, and aerospace airfoils.
This business unit serves the defense, energy, aerospace, and industrial markets, where its products
are used in military and commercial aircraft engines as well as power-generation turbines. Additional
products and services include molds, hot isostatic pressings, specialty coatings and tools, as well as
machinery. APP operates 25 production facilities around the world, employing more than 9,000 people.
Working to Improve Processes
The APP leadership team discovered scrap and rework issues were resulting in high customer claims
and delivery issues, therefore they sought solutions for significant reductions to scrap levels to improve
delivery, rework, and customer satisfaction. In the past, substantial scrap level decreases were thought
to be unattainable because casting is a particularly complex process (see the sidebar, The Investment
Casting Process, for more details) with many sources of variation.
In late 2011, APP’s quality focus shifted toward sustainable and continuous process improvement,
particularly at nine of the unit’s super alloy foundries (five in the United States, three in Western
Europe, and one in Japan). While these foundries were the starting point for the initiative because
they recorded the highest levels of scrap, the ultimate goal for APP was to create a sustainable solu-
tion for deployment at the plant level by mid-2012. The rig ...
Spend Analysis: What Your Data Is Telling You and Why It’s Worth ListeningSAP Ariba
Driving bottom line savings continues to top the wish list of the chief procurement officer’s agenda, yet the decision path to get there often relies on perceptions and intuition. Without the right visibility into spend data, suppliers, or related market information in hand, sourcing and procurement decisions often run counter to the business objectives. Gaining comprehensive visibility is the stepping stone to effective spend management. Join this session where experts share their secrets on striking it rich by listening to what their spend numbers have to say.
13. Key Relationships Controller: David Harris Cecilia Xing CCNA Reporting: Mark Humphrey Clara Sun Te-ling Fu Jeff Cozzo TBTs: Chris Baiamonte Sparkling Finance: Joel Appleman Dana Hasty Others: Ming Qi Nannan Ding Global Strategy: Evan Charles Willis Fan Bottling Investment: Karen Drake Still Bev. Finance Still Beverages Finance Nancy Du Nancy Du