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Welcome Combining Lean and Six Sigma by David Rucker President, Rucker & Associates and Welcome Combining Lean and Six Sigma by David Rucker President, Rucker & Associates and Paula Dube Continuous Improvement Leader, Performance Fibers

Lean. Sigma A blend of Lean Manufacturing and Six Sigma improvement tools Applied using Lean. Sigma A blend of Lean Manufacturing and Six Sigma improvement tools Applied using Kaizen Methodology Lean. Sigma generates rapid, team-based results 2

Evolution of Lean. Sigma Lean 60 s 70 s Six Sigma Ford Toyota Production Evolution of Lean. Sigma Lean 60 s 70 s Six Sigma Ford Toyota Production System Just-in-Time 80 s Lean 90 s 00 s Deming Quality Improvement Tools Reduce Variation TQM Six Sigma (Motorola) Lean. Sigma 3

Two of the world’s “Leanest” Both are GROWING and lead in profitability 4 Two of the world’s “Leanest” Both are GROWING and lead in profitability 4

Lean Manufacturing Waste Elimination Worker productivity Identification of defects is immediate with one piece Lean Manufacturing Waste Elimination Worker productivity Identification of defects is immediate with one piece flow Equipment uptime Waste elimination Flexibility and responsiveness Lead-time reduction Reduce set-up/changeover time Inventory reduction 5

Lead-Time Reduction Time Order Entry Production Planning Suppliers Manufacturing Distribution Accounts Customers Receivable Admin Lead-Time Reduction Time Order Entry Production Planning Suppliers Manufacturing Distribution Accounts Customers Receivable Admin Business Process Kaizen Shop floor Kaizen Prod MFG Dist Cust A/R O-E Plan Supp Operational Lead Time Critical for driving improvement to your customers 6

Waste in Manufacturing Excessive Inventories Wasted Time and Activity Core Process Value Excessive Motion Waste in Manufacturing Excessive Inventories Wasted Time and Activity Core Process Value Excessive Motion Defective Products (Walking to Next Task, etc. ) (Identifying, Handling, Fixing) OPERATIONAL LEAD TIME Unneeded Processing Time Waiting Overproduction (Often Result of Unbalanced Tasks) • Defective products • Overproduction • Inventories • Excess motion Transportation (Movement to Storage area) • Processing • Transportatio n • Waiting Lead time reduction: identify and eliminate waste 7

Six Sigma Disciplined, rigorous problem-solving techniques Analysis of multi-variate defects Focus on reducing variation Six Sigma Disciplined, rigorous problem-solving techniques Analysis of multi-variate defects Focus on reducing variation Root cause analysis Measurement Systems analysis Measurement focused 8

Focus of Six Sigma Y=f(x) Y X 1……. XN Dependent Independent Output Input Effect Focus of Six Sigma Y=f(x) Y X 1……. XN Dependent Independent Output Input Effect Cause Monitor Control 9

Six Sigma DMAIC Process Define/ Measure Control Sustain the gains from the improvement phase Six Sigma DMAIC Process Define/ Measure Control Sustain the gains from the improvement phase Who are the customers, what are their priorities and how is it linked to our strategy? Baseline the process and verify the data Analyze Determine the most important causes of the defects Improve Implement improvements to eliminate the defects 10

Kaizen Key Principles Clear objectives Extensive team involvement Tight focus on time (one week) Kaizen Key Principles Clear objectives Extensive team involvement Tight focus on time (one week) Quick and simple, action first Necessary resources available right away Immediate results Corrective action can be immediate 11

Kaizen Breakthrough Cross-functional team-based process for rapid improvement Bias for action Creativity before capital Kaizen Breakthrough Cross-functional team-based process for rapid improvement Bias for action Creativity before capital Focus on results Focus on physical transformation Learn by doing Overcome resistance Instill change culture 12

DMAIC Process Using Kaizen DMAIC Kaizen M AI M = Kaizen event AI = DMAIC Process Using Kaizen DMAIC Kaizen M AI M = Kaizen event AI = Kaizen event C = 30 day follow up C ~ 1 - 2 months Traditional Six Sigma M A I C ~ 4 - 6 months 13

DMAIC Kaizen- Measure Phase Day 1 Training & Scope Day 2 Teach & Do: DMAIC Kaizen- Measure Phase Day 1 Training & Scope Day 2 Teach & Do: • Lean. Sigma Overview • Kaizen Breakthrough Methodology • Lean. Sigma Measure Tools • Identify defect, “Y”, & project scope • Enhanced Spaghetti Map • Quality Map • Verify Standard Operations • Comparative Analysis • Collect Historical Data Day 3 Teach & Do: • Comparative Analysis • Measurement System Analysis • Improve measurement system, if necessary • Determine Process Capability • Collect Live data • Quick kills Day 4 Teach & Do: • Comparative Analysis • Basic Quality Tools • Cause & Effect Chart • Gather Additional Data if Required Day 5 • Presentation of Measure Phase 14

Lean and Six Sigma Integration 6 Sigma (3. 4 DPM) 5 Sigma (233 DPM) Lean and Six Sigma Integration 6 Sigma (3. 4 DPM) 5 Sigma (233 DPM) 4 Sigma (6, 210 DPM) 3 Sigma New Product Development New Process Development Process Optimization Process Capability Create Flow Waste Elimination (66, 807 DPM) 1 -2 Sigma (308, 537 DPM) Logic & Intuition 15

Integrate Lean and Six Sigma Focuses on lead time and variation reduction Combines quick Integrate Lean and Six Sigma Focuses on lead time and variation reduction Combines quick action with Measurement focus Extensive Team Involvement Implementation with Kaizen Speed Drives culture change Quickly attacks the 10 to 20% cost of quality 16

Quality Control Lab Kaizen Event Goals 1. Reduce inventory 25% 2. Improve productivity 25% Quality Control Lab Kaizen Event Goals 1. Reduce inventory 25% 2. Improve productivity 25% 3. Create Standard Operations September 15 - 19, 2005 17

Baseline Metric: People Flow 320 ft worth of movement !! 18 Baseline Metric: People Flow 320 ft worth of movement !! 18

Takt Time Chart Takt Time = 620 minutes = 525 seconds 71 Tests 19 Takt Time Chart Takt Time = 620 minutes = 525 seconds 71 Tests 19

Trial Setup Denier Instron T. S. Coherency Operator Two P WI WIP Operator One Trial Setup Denier Instron T. S. Coherency Operator Two P WI WIP Operator One WIP t i Ex Material Flow Operator 3 20

Before Layout New Cellular Layout 21 Before Layout New Cellular Layout 21

Summary of Achievement Measure Before After Improvement 5 4 20% 65 34 42% 320 Summary of Achievement Measure Before After Improvement 5 4 20% 65 34 42% 320 ft 60 ft 81% Tests per Shift 42 61 31% Equipment Used 14 10 29% Intersecting, colliding One direction, flow Operators per Shift Inventory Movement per Test Material Flow Goal is 71 22

Trial Results TAKT TIME Computer issues disrupt ability to meet Takt Time 23 Trial Results TAKT TIME Computer issues disrupt ability to meet Takt Time 23

Six Sigma: Reducing Variation • • • Network too slow Re-Test procedure causing extra Six Sigma: Reducing Variation • • • Network too slow Re-Test procedure causing extra tests Eliminated unnecessary test Mistake-proofed sample log screens Coached adherence to standard operations across all four shifts • Separated log screens to minimize file open/close time Achieved Target of 71 Tests! 24

Sigma Kaizen Event Reduce Fray Defects by 50% March 28 – April 2, 2005 Sigma Kaizen Event Reduce Fray Defects by 50% March 28 – April 2, 2005

Define and Measure ü Charter ü Defined defect as broken filament ü High level Define and Measure ü Charter ü Defined defect as broken filament ü High level process map ü Detailed Quality Map ü Gage R & R on measurement systems ü Fish bone diagram to determine cause and effect ü Difficulty impact matrix ü Process Capability ü Comparative Analysis 26

Repeatability Visual Inspection Gage R & R Results Within Appraisers Assessment Agreement Appraiser # Repeatability Visual Inspection Gage R & R Results Within Appraisers Assessment Agreement Appraiser # Inspected # Matched Percent 95 % CI Brenda 32 25 78. 13 (60. 03, 90. 72) Vic 32 23 71. 88 (53. 25, 86. 25) Chris 32 23 71. 88 (53. 25, 86. 25) Katrina 32 24 75. 00 (56. 60, 88. 54) Edgar 32 24 75. 00 (56. 60, 88. 54) Sue 32 10 31. 25 (16. 12, 50. 01) # Matched: Appraiser agrees with him/herself across trials Reproducibility Between Appraisers Assessment Agreement # Inspected # Matched Percent 95 % CI 32 7 21. 88 (9. 28, 39. 97) # Matched: All appraisers' assessments agree with each other. Goal should be > 90% correct decisions! 27

Visual Inspection Gage R & R Results • No operators met the gage R&R Visual Inspection Gage R & R Results • No operators met the gage R&R goal of 90% • Visual expert was only 62% repeatable! • Completed parallel study using automated defect counter • Gage results met 90% goal Through MSA, determined good product was labeled defective. 28

DMAIC at Kaizen Speed 9 to 12 months Traditional Black Belt Project Kaizen 6 DMAIC at Kaizen Speed 9 to 12 months Traditional Black Belt Project Kaizen 6 weeks Project Charter to Implementation completed in 6 weeks! Kaizen Team process helps buy-in and sustainment Improved yield 2. 5%! 29