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									Integrating Six Sigma and Lean
        Manufacturing
  The Challenges & Benefits

          Frank Garcia

   ADVENT DESIGN CORPORATION
   SIX SIGMA or LEAN
   MANUFACTURING
Need to lower costs & reduce lead time?




                        •   Material flow is poor
                        •   Error rate is high
                        •   Can’t deliver ontime
                        •   Equipment too slow
 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 Play by Play Analysis and Instant Replay
 Six Sigma or Lean Manufacturing?

LEAN MANUFACTURING: Flow Focused

  Lean cannot bring a process under statistical control


SIX SIGMA: Problem Focused

  Can not dramatically improve process speed or reduce
  invested capital

                    NEED BOTH!
      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
        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
         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!
            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
              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
             Six Sigma System

   A defined management process and CTQ
    goal (3.4 ppm) 3 sigma is 66,807 ppm!
   Driven from the top
   Focused on Voice of the Customer
   A data analysis and problem solving
    methodology
   Strong focus on variation reduction
   Supported by highly trained problem
    solvers
     Uncovering Quality’s Hidden Costs
                                 Traditional
                            (Tip of the Iceberg)
                                                                        5 to 8 %
15 to 20 %
                                   Warranty    Scrap
                                   Rejects        Rework

                                                                       Late Delivery
                                       Lost
Engineering 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
  Six Sigma Variation Reduction
Process Variation Should be Less Than Specs




    Variation Reduction is Cost Reduction
  Six Sigma’s () Focus: Reducing Variance

“ You have heard us talk about
                                          Reducing
span, the “evil” variance our
                                          the variance
customers feel in our response
                                          provides
to their requests for
                                          better
delivery, service or
                                          control of
financing.”
                                          the process.



                                 A process mean tells
                                 us how the process is
                                 performing while the
                                 variance gives us an
                                 indication of process
                                 control.
          What is Six Sigma () Quality?
Population mean ()
or average                                   One (1)  represents
                                            68% of the population
                                                  Two (2) 
                                                  represents 95% of
                                                  the population
                                                       Six (6) 
                                                       represents
                                                       99.999997% of
With 6  Quality, approximately 3.4 items in a         the population
population of 1,000,000 items would be unacceptable.
              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
        Six Sigma Financial Impact Areas:
           The Savings Categories


1.   Cost Reduction (including
     cost at standard and costs not
     included in standard cost)
2.   Cost Avoidance (can be
     difficult to document)
3.   Inventory Reduction
4.   Revenue Enhancement
5.   Receivables Reduction
              Six Sigma System
          A culture characterized by…..

   Customer centricity: What do they value?
   Financial results
   Management engagement & involvement
   Resource commitment: 1 to 3% of staff full
    time
   Execution infrastructure: black & green
    belts, teams
Six Sigma Problem Solving Steps

               Process
                                          Breakthrough
   Define & Measure
     Validate Data                          Strategy
     Collected
                                          Characterization

  Analyze
    Vital Few Factors For Root Cause
    of Problem


  Improve
   Identify appropriate operating
   conditions

                                             Optimization
   Control
Sustain - Insure Results to Bottom Line
            The DMAIC Cycle
             Six Sigma In Action


               SDCA     Measure &           Plan-Do-Study-Act
   Define                                   Teams
                         Analyze
                                            Benchmark
                                            Analysis tools
            Management                      ID variability
SDCA
            Commitment
                                          Employee Involvement

                          Improve            Design of
  Control
                      Plan-Do-Study-Act     Experiments


       SDCA = Standardize-Do-Check-Adjust
                    Six Sigma Tools

Check Sheets: Checklists of what is to be accomplished,etc..
Scatter Diagrams: A graphical representation between two
measurements (variables).
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: A method for organizing errors based on the
number of errors created by a particular attribute (ex.
Machine, Supplier, Product, Individual, etc.).
                   Six Sigma Tools

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,
         defect information, etc.

X-Y Matrix: A ranking method used to prioritize process
inputs (X’s) to process outputs (Y’s).

FMEA’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.
        Six Sigma Tools - Process Maps or
                   Flowcharts
What are the X’s (Input variables) at each process step?
What are the Y’s (Output Variables) at each process
step?

 Remember Y = f (x)
 Remember Valued Added
  versus Non-Value Added

 Remember Cycle Times
  and Defects
 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-Time
obstacles, reviews progress                              Commitment
Six Sigma Information Flow
                     The Bad News:
        Six Sigma Program: Implementation Issues
   Some of the facts:

   80% of Six Sigma Implementations fail.

   Traditional Six Sigma implementations have
    largely been attempted at large Fortune 500
    Companies due to the large investment in
    people, training and overall support.

   Training costs alone for a “wave” of 25
    people can cost $250,000 for this 4 to 6
    month training period. Training costs and
    personnel requirements can overwhelm
    many smaller organizations.
        Need for Six Sigma & Lean
          External - Satisfying Customers…..

   Quality, Warranty, and Cost
   Customers Require Six Sigma
   Customers Require Lean Manufacturing
   Competitors are implementing Lean & Six
    Sigma
   Staying in business
          Need for Six Sigma & Lean
    Internal - Improving Profitability through…..


   Operational Cost Reduction
    Improve Productivity
    Reduce Scrap and Rework
    Reduce Inventory & WIP
   Engineering Design Cost Reduction
    Define-Measure-Analyze-Design-Verify (DMADV)
    Stabilize & Quantify Process Capability
    Input for Product and Design Process
Lean Six Sigma Model
    You Can Apply Six Sigma Techniques to Complement
               Existing Lean Capabilities




                      Lean Training &
                      Implementation

                             VSM
                                                     Six Sigma
                                                     Analysis,
   Lean         Waste                    Process     Problem
Techniques    Reduction                  variation   Solving &
                    Inventory Reduction              Training
                         & Control



                          Supply Chain
                          Management
      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
      Lean Six Sigma Implementation
               Some Solutions…….
   Need to implement in the correct order
   Policy deployment to align business
    objectives (Flow, Waste & Variation
    Reduction)
   Focus on shop floor results, not class
    room skills
   Experienced teachers & coaches
   Standardized work to institutionalize the
    gains
                  The Lean Six Sigma Strategy

 Lean 6 is a CHANGE STRATEGY for accelerating improvements in processes,
products, and services to improve a company’s performance leading to improved
financial performance and competitiveness of the organization.
   Goals:

     Improved    Customer Satisfaction
     Increased   Profits
     ImprovedProcess Capability by
     Reducing Variance
     Increased   Market Share
     Support   Continuous Improvement
     Sustained   Gains for Completed
     Projects
             Lean and the 6  Structure
 FULL TIME
COMMITMENT               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)
     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 Justify
   Focused on Solving Companies’ Problems
   Joint Problem Solving and Knowledge/Skill
    Transfer
   Easier to Meet Customer Mandates to Use
    Lean Six Sigma Techniques
   Provides Evolutionary Approach to Lean/Six
    Sigma Implementation and Training
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!
    The Lean Six Sigma Cycle


               VSM
Commitment &         Recommended      Set Up
 Assessment            Solutions      Layout
                                      Cells
Continuous                            Visual

Improvement
                                      Variation Reduction

                     Implementation    Information
   DO IT!
                          Plan           Systems
Understanding the Process: The 1st Step and Foundation of
                    Lean Six Sigma

          Y = f(X)

Output(s)
       are a function
                                    Input(s)
The Lean Six Sigma process attempts to
control the outputs by controlling the
inputs (those Critical to Quality or CTQ’s)
              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
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
             Value Stream Map Concept


             Orders    Production            Orders
Suppliers                                             Customers
                        Control


                                 Schedules



    I
                       Process                             I
                                 Equipment
  Raw
                      Ÿ Cycle                           Finished
 Materials
                        Times                            Goods
                      Ÿ Change
                        Over
                      Ÿ Reliability
                      Ÿ Error Rate

                          Lead
                          Time


                                                               File: VSM-A1
                                                   Value Stream Map (Current State)

                                                                                          Orders Every 2 Weeks




                                                                                                                        Production Control
                              New Jersey                                                                                                              Randomly Placed
Andrea 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
                                                     Value Stream Map (Future State)

                                                                                           Orders Every Week




                              New Jersey                                                                                                                       Randomly Placed
Andrea 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
    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?
           Lean Manufacturing
          Concepts & 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
                      Road Map to Lean Six Sigma
Lean to improve flow and reduce inventory & lead time
Six 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                       Every 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 T ime                                                           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
                Low Productivity
             Electrical Device Assembly
             The Challenge in Two Steps
   Client wanted wave
    soldering and robotic pick
    and place
   Functional operational
    layout
   Reject rate 5 to 8%
   Extensive material staging
   No space
   Initially, 13 people in
    Aurora cell
   Low output: 300 units/day
    Lean Six Sigma Techniques Used
   Process mapping

   Cellular Manufacturing & Layout

   Balance Cycle Times Between Work
    Stations

   Reduce Batch Size & parts staging

   Quality Data Collection & Analysis
    (Reduce Reject Rate)
Cellular Assembly Layout
                     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                          ATTACH
1   PLACEMENT                 TEST PCBs    SOLDER      LABEL
                                                                   STRAP &
                                                                   ATTACH
                                                                                        STRAP
                                                                    STRAP

                                                       INSERT
TEST         LED               REJECT
                                                      SWITCH
PCBs       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
           Lean Six Sigma Changes

   Cold staking fixtures

   Powered screw
    drivers

   Light test & Soldering
    fixtures

   Quality data tracking
    via % defect control
    chart (p chart)
    With Lean Six Sigma
    The 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
       Reducing WIP & Improving Quality
                Wire Extrusion & Finishing
                      The Challenge

   Client wanted to reduce WIP
    by 50%
   Extrusion rejects (7%)
   Material flow problems
   Little data collection
    Lean Six Sigma Techniques Used
   Value Stream Mapping

   Cellular Manufacturing & Layout

   Kanban Trigger Board

   5S

   Quality Data Collection & Analysis
    (Reduce Reject Rate)
    Reducing Lead Time & Improving Quality
                  Steel Panel Fabrication
                      The Challenge

   Client wanted to reduce
    lead time to less than one
    week
   Automated equipment had
    been installed but had
    problems
   Panel rejects & rework (5%)
   Material flow problems
   Few process controls or
    data collection
                                                                           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 Operators
depending                                                                                                                                                                                              Handler
on 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
    Lean & Six Sigma Techniques Used


   Value Stream Mapping

   Process flow diagrams

   Setup time Analysis

   Quality Data Collection & Analysis
    (Reduce Reject Rate & Variability)
  INITIAL IMPROVEMENT CONCEPTS


Improve reliability and changeover
capability of R1 and R12 machines.
Reduce panel reject rate.
                                     Radius & Band
Work 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
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.
                                    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                                                                                                     DON'T 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
           SELECTION           USE OF AIR vs.                                                                                                                               VARY
                                                                        BEARINGS
                                HYDRAULICS                                                      BANDS HAVE
                                                                        ON LOWER
                                                                                                  CAMBER
                                                                        FORMING
                                INDEXES VARY
                                                                          TOOL
                                                                                                                                                                         GALVINIZED COATING
INDEXES 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 SUPPLIERS
AIR CYLINDER                                      PANELS CATCH AT
  OPPOSING                                          LAST 2 BENDS
HYDRAULIC 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
                Process Improvements
          Separating 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
     Why Lean Automation?

     “After implementing lean
  improvements such as cellular
manufacturing and setup reduction,
selective automation can add value
  and reduce human variability.”

 Richard Schonberger, June 2002
     New Radius Bending Machine R13
                    • Automated band cutting
                    • Servo driven adjustments from
                      panel bar codes




• Online radius
  measurement and
  tracking
     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
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 Sigma
   Enhances Define-Measure-
    Analyze-Improve-Control
    methodology (DMAIC)

   Online measurement of       Process Control
    process parameters

   Direct data input into
    control charts

   Provide realtime controls
    as control limits are
    understood
 R13 Process Controls & System Status

                             Realtime Data Collection
                              for Six Sigma Analysis




Diagnostics for Rapid
Identification of Problems
                                               Realtime Data From R13
           Target      Top         Bot.                                       Bend         Bend        Bend        Bend         Panel       Panel
Index      Chord       Chord       Chord     Delta Top                        Angle        Angle       Factor      Factor       Radius      Length     Cycle
Count      Height      Height      Height    / Bot.     Top Dev. Bot. Dev.    Offset       Factor      Top         Bot.         (Feet)      (Inches) Time                            Template Template
V2022      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     131.2
Log 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 3'R
         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
     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 processes requiring Six Sigma
    analysis
   Analyze, eliminate, and control variation
   Start the cycle again!
               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
        Contact Information

         Advent Design Corporation
        Canal Street and Jefferson Ave.
              Bristol, PA 19007

           www.adventdesign.com
              800-959-0310

Frank Garcia, Director Planning & Producttvity
       frank.garcia@adventdesign.com

								
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