Lean Manufacturing and Six Sigma (Final Year Project)

LEAN MANUFACTURING AND SIX SIGMA GHANDHARA NISSAN LIMITED

BATCH - 2008 PREPARED BY: Muhammad Ehsan (G.L) Fiaz Ahmad Shahid Ali Muhammad Idrees Rahmat Ali

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Supervised By ENGR. IMRAN KHAN SHAIKH DEPARTMENT OF INDUSTRIAL ENGINEERING & MANAGEMENT DAWOOD COLLEGE OF ENGINEERING & TECHNOLOGY, FEDERAL DEGREE AWARDING INSTITUTION KARACHI 2012 Page | i

PROJECT REPORT ON

LEAN MANUFACTURING AND SIX SIGMA AT GHANDHARA NISSAN LIMITED

D.C.E.T

BATCH - 2008 PREPARED BY: Muhammad Ehsan (G.L) Fiaz Ahmad Shahid Ali Muhammad Idrees Rahmat Ali

D-08-IN-314 D-08-IN-331 D-08-IN-337 D-08-IN-338 D-08-IN-339

INTERNAL ADVISOR Engr. Imran Khan Shaikh ( Faculty Member I.E&M)

EXTERNAL ADVISOR AMIR MUFTI Production Manager (GNL)

DEPARTMENT OF INDUSTRIAL ENGINEERING & MANAGEMENT DAWOOD COLLEGE OF ENGINEERING & TECHNOLOGY KARACHI Submitted in partial fulfillment of the requirement for the degree of Bachelor of Industrial Engineering and Management 2011/2012 Page | ii

DEPARTMENT OF INDUSTRIAL ENGINEERING AND MANAGEMENT

Certificate It is to certify that the following students of Final Year Industrial Engineering and Management Batch - 2008 have successfully completed their Final Year Project in Lean Manufacturing and Six Sigma at Ghandhara Nissan Limited, port bin Qasim road Karachi.

Muhammad Ehsan Fiaz Ahmad Shahid Ali Muhammad Idrees Rahmat Ali

Internal Advisor

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Chairman

External Examiner

I.E&M

Engr. Imran Khan

Prof. Hussain Marri

Dawood College of Engineering and Technology, Karachi 2011/2012 Page | iii

DEDICATION This humble effort is dedicated to our Holy Prophet Hazrat MUHAMMAD (Peace Be Upon Him)

No doubt his life is a best Model for us.

Also we dedicate this project report to our parents, teachers and all those who supported and encouraged us to reach this position. Without their support and help we would not be able to complete our project.

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C O N T E N T S 7 8 9

Acknowledgement Abstract Project Aim and Objectives 1 Introduction to Ghandhara Nissan Limited

Chapter No. 01 Introduction to GNL

1.1 About Ghandhara Nissan 1.2 About GNL Plant 1.3 Nissan Products 1.4 Production/Assembly Plant 1.5 Quality Control Department 1.6 Warehouse 1.7 Final Remarks 2 Introduction to Lean Six Sigma

Chapter No. 02 Introduction to Lean Six Sigma

2.1 Lean Sigma – An Over view 2.2 History of Lean Six Sigma 2.3 Adv of Integrating Lean Six Sigma 2.4 How are Lean Six Sigma Similar 2.5 How are Lean Six Sigma Different 2.6 Six Sigma Roles & Responsibilities 2.7 Implementation in Modern World 3 Lean Tools and Wastages

Chapter No. 03 Lean Tools and Wastages

3.1 Lean Manufacturing - An Overview 3.2 What is Lean Manufacturing 3.3 Principles of Lean Manufacturing 3.4 Lean Goals and Strategy 3.5 Manufacturing Wastages 3.6 Methodologies of Lean 4 Six Sigma; Methods Of Analysis & Infrastructure

Chapter No. 04 Six Sigma; Methods of Analysis & Infrastructure

4.1 Six Sigma Tools 4.2 Statistical Analysis Tools 4.3 Process Optimization Tools 4.4 Elements of Six Sigma Infrastructure 4.5 Six Sigma Organizational Structure 4.6 Successful Project Selection

10 11 12 13 15 23 27 31 32 33 34 39 40 42 43 44 45 46 49 51 54 55 60 78 79 81 95 101 104 109

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C O N T E N T S 5 Six Sigma Implementation

Chapter No. 05 Six Sigma Implementation

Chapter No. 06 Six Sigma; Quality and Continuous Improvement

Chapter No. 07 Case Study at GNL

Conclusion Glossary Bibliography/Reference

5.1 Over view of Six Sigma Implementation 5.2 Role of Six Sigma Implementation 5.3 Six Sigma Implementation Categories 5.4 DMAIC/DMADV 5.5 Why Lean and Six Sigma 5.6 5Whys, Ford 8Ds (Discipline) 5.7 Statistical Process Control 6 Six Sigma; Quality and Continuous Improvement 6.1 Six Sigma and Quality 6.2 Quality Standards 6.3 Gurus of Quality 6.4 Total Quality Management 6.5 Continuous Improvement 7 Case Study at Ghandhara Nissan Limited 7.1 Ist Brainstorming Session 7.2 2nd Brainstorming Session 7.3 3rd Brainstorming Session 7.4 4th Brainstorming Session

112 113 115 116 125 130 132 134 137 138 141 142 144 146 151 152 158 160 162 166

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Acknowledgement In the name of ALLAH, the most beneficent, the most merciful By the grace of Almighty “ALLAH” who gave us the strength courage to complete this project. Without his blessing the dream of completing the project would never come true. ALHAMDULILLAH, our endeavor are rewarded and the project has reached not only due to hard work done by group members, but there are individuals who helped us in achieving this particular goal at this movement of triumph we deem it fit to pause while and acknowledge all of them. First and formost we take pride in mentioning the name of our dignified and friendly minded project advisor Mr. Imran Khan Shaikh (Lecturer Industrial Engineering and Management Department) for his full fledged support and encouragement made this tedious task much easier. It is our good luck that we assigned with such a kind advisor. We are also very obliged to Mr. Amir Maqbool (Manager Production Manager) Ghandhara Nissan Limited Pakistan. We also appreciate the guidance and support of all other personals, Especially; Mr. Butt Sahb (Quality Control) Mr. Ahmed Mohib (Quality Control) Mr. Mairaj Ahmad (Main Assembly Shop) Mr. Muhammad Junaid (Engine Assembly Shop) Who helped us in understanding the various processes being carried out and also helped us in providing the key resources whenever we required. They help us in understanding the different work being carried out in Ghandhara Nissan Limited, to enhance our technical skills. We really believe that our Project at Ghandhara Nissan Limited would never be possible without the support of all these people. We appreciate the cordial co-operation from all our concern Managers in all departments. We also wish to thanks to the teacher who made us able to the stage where today we are.

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Abstract The technology during the 21st century offers a great promise to the people all over the World. The latest advances in Engineering Science and technology have given engineers powerful tools for re-assessing and reorganizing the systems. In the present business scenario, competitiveness of manufacturing companies is determined by their ability to meet and respond as swiftly as possible to the changing environment scenario and to produce and supply high-quality products at lower cost as per demand of the customer. Thanks to Industrial Engineering, A dynamic discipline in the information era that enables to understand and solve complex technical-economic-social problems. All the manufacturing companies are striving too hard to achieve their aims, objectives and their capabilities by proper planning and skillfulness, through application of automation and innovative concepts, e.g. Lean Manufacturing, Six Sigma or both, Just-In-Time (JIT), and Total Quality Management (TQM), etc. Among these innovative concepts, Lean Manufacturing & Six Sigma is recognized by the manufacturing companies as a major driver to achieve world-class capabilities. Many large and medium-size manufacturing companies have adopted this concept, and experienced reduction in manufacturing lead time and material handling cost, and improvement in quality with other benefits. It is generally agreed that for a Lean Manufacturing and Six Sigma program to be effective, it should include a set of tools and techniques or provisions to ensure management commitment, employee involvement, identification of wastes, development of controls for wastes and training and education for employees. These tools and techniques are said to be typical of any comprehensive Lean Manufacturing & Six Sigma implementation program. The implementation of lean manufacturing reduced the waste in the industry and enhances the profit and production. Keeping in-view the benefits of Lean Manufacturing and Six Sigma, we have decided to work on the implementation or study of the tools/techniques of Lean Manufacturing & Six Sigma in the Ghandhara Nissan Limited.

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Project aim and Objectives  Aim: Aim of presenting this project thesis/report is to highlight all the deficiencies and problems (if any) in the industry and then try (our level best) to tackle all these by implementing Lean Manufacturing and Six Sigma Approach.

 Objectives: The main objectives of our project are:  To study the conceptual application of core subject of the Industrial Engineering.  To study the industrial vision of the Ghandhara Nissan Limited.  To study and make sure that all the Basic Principles, Tools and Techniques of Lean Manufacturing and Six Sigma is properly implemented.  To study and find out the manufacturing wastages; if there is any.  To get acquaintance with the labor problem, the behavior, attitude and devotion toward their job from organization behavior point of view.  To get conversant with the liaising of Management with Bottom management.

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Chapter No: 01

Introduction to Ghandhara Nissan Limited

1.1 About Ghandhara Nissan 1.2 About GNL Plant 1.3 Nissan Products 1.4 Production/Assembly Plant 1.5 Quality Control Department 1.6 Warehouse 1.7 Final Remarks

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{D-08-IN-314, 314, D-08-IN-331, D D-08-IN-337, D-08-IN-338, 338, D-08-IN-339} D 1.1 Introduction to Ghandhara Nissan Limited :

Ghandhara Nissan Limited (GNL) is a group Company of Bibojee Services (Pvt.) Limited. The Company was incorporated in 1981 as a Private Limited Company having the sale licensee for the distribution of Nissan vehicles in CBU condition in Pakistan, later in 1992 it was converted in to a Public Company listed in Karachi Stock Exchange. GNL has Technical chnical Assistance Agreement with Nissan Motor Co. Japan and joint Venture Agreement with Nissan Diesel Co. Japan for the progressive Assembly of Passenger Cars, Light Commercial Vehicles and Heavy Duty Vehicles. GNL’s Car and Truck Plants are located at P ort Qasim adjacent to each other. Itt is the only Automobile Company in the country, country assembling complete range of product i.e. passengers cars, light commercial vehicles and heavy-duty heavy trucks and buses. The company is committed to achieve high quality products, customers’ satisfaction, market leadership, contribution in the economic growth of Pakistan and comply with all regulatory and other requirements for making the environment user friendly.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 1.2 About GNL Plant: The Assembly Plant of Ghandhara Nissan Diesel Limited situated at Bin Qasim, Karachi is most modern of its kind in Pakistan. The innovations carried out in-house from time to time, contributes to high standard of quality. Its capacity is flexible and can be doubled easily. It can produce 1200 vehicles annually on single shift basis. The Company is committed to meet the nations transportation needs by providing economical, user friendly and high quality commercial vehicles.

In this regard quality at all levels is strictly maintained by GNDL team of Engineers and Technicians, trained locally and abroad. Area of Plant: Total Plant Area

:

32373 Square Meters

Total Built up Area

:

10450.389 Square Meters

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{D-08-IN-314, 314, D-08-IN-331, D D-08-IN-337, D-08-IN-338, 338, D-08-IN-339} D 1.3 Nissan Products: Products Nissan is the only Automobile Company in the country , assembling complete range of products i.e. passengers cars, light commercial vehicles and heavy duty trucks and buses. Vehicle Line-Up 1.3.1 Cars:

Nissan X-Trail X

Nissan Patrol

Nissan Cefiro

Nissan Sunny

1.3.2 Bus:

SP210 TURBO Bus

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 1.3.3 Trucks:

PKD 411 HHRR {New} (Turbo charger 4X2Truck)

PKD 311 HHRQ (4X2Truck)

CDA 311 PHRP (Turbo charger 4X2Truck)

PKB 211 GHRN (4X2Truck)

PKC-311ETNP (Turbo charger 4x2Truck Tractor)

CWM-454MHRA (6X4 Truck Tractor)

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 1.4 Production/Assembly Plant: Following production sections are being operated at GNDL Assembly Plant:  Chassis Drilling

 Frame Riveting

 Axle Assembly Shop

 Engine Assembly Shop

 Engine Test Shop

 Cab Metal Shop

 Paint Shop

 Trimming Shop

 Tube Bending Shop

 Chassis Assy Line

“A bird Eye-View of the Assembly plant is shown in the figure below”.

Figure: Assembly Plant Layout

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 1.4.1 Frame Drilling and Riveting: In this area frame is prepared, which is main component of the chassis. The work on the frames is carried out in following: 1st Stage: Drilling Φ≤30mm 2nd Stage: Drilling Φ≥30mm Flange Drilling 3th Stage: Web Drilling 4th Stage: Grinding Area: Here the frames are grinded, and all the burs of the holes arise due to drilling are cleaned/ removed. Also the number on the frame of the chassis is engraved through an engraving machine. 5th Stage: At this stage the frames are forwarded to the paint shop or painting. After painting and dried up, the frames are than send to the stage 6. 6th Stage: After painting, the frames are here permanently joined through riveting. Here the long members (i-e left and right frame) are joined together with the help of cross members by the application of welding and riveting.

Figure: Frame Riveting Shop

“After drilling and riveting the frames are assembled as per drawing”.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 1.4.2 Axle Assembly Shop: This shop is the one of the complex shop in the Chassis Assembly line. Axles are assembled here and sent to the main assembly line fro further possessing/operation. The work here is divided in the following six stages: 1st Stage: First all the components/parts required in the assembling process known as C.K.D parts (Complete Knock Down) are unboxed and than wash out to remove all the impurities present in the form of dust, rust, etc. These parts are: Hub and Drum Axle Shaft Front Beam Tube 2nd Stage: Hum and Drum is Assembled 3rd Stage: Bearing greasing and Lubrication 4th Stage: Differential in assembled over tube (Rear Axle) 5th Stage: Main assembling process starts at this stage. The different types of works performed here are: Brake Assembly (Left and Rights) Outer bearing and adjustment nut Inner bearing Pre-Load Adjustment (PLA) Hub/Drum mounting Brake Assembly Clearance Other adjustments and Brake settings (as specified in standards) Ready for paint. Standard: 0.3mm to 0.4mm clearance between brake shoe and drum) 6th Stage: Number Punch Knuckle Assembly (R/L) o King pin o Front Pulley/Thrust Bearing o Greasing Toe in-out adjustment (up to 46°) Brake Assembly Inner bearing on knuckle assy (R/L) Hub and Drum (R/L) Different Adjustments Ready for Paint. Figure: Axle Assembly Shop

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 1.4.3 Engine Assembly and Testing Shop: Engine shop is the most important sub assembly shop to the main assembly line. Engines of the required specification for any vehicle are assembled in the engine shop. Most of the components of the engine are C.K.D (i-e received from Japan). In the assembling of the engine, first crankshaft and camshaft is attached with cylinder block, and then cylinder head is attached. After these things piston is attached to the crankshaft with help of the connecting rods, then housing is done, after which fly wheel is attached. Now the engine starts to get shape, as fuel injection pump and starter motor is attached with the engine, then compressor is attached. Now the engine assembling is almost completed and then the engine test is carried out before dropping the engine on the chasses. Some of the main components of engine used in the assembly process are: Cylinder Head Cylinder Block Crankshaft Camshaft Flywheel Piston

Flywheel Housing Exhaust Manifold Intake Manifold Turbocharger Timing Case Rocker Arm

Figure: Engine Assembling Shop

Engine Gasket Kits Valve Cover Oil Cleaner Oil Sensor Air Intake Air Filter

Figure: Engine Testing Shop

The engine test is done in specially designed environment providing fuel and air directly form the cylinder. Very rarely they get problems here but if the gets any, they quickly tries to satisfy or remove the problem. The engine is sent to the chasses assembling line, where it is drop on the chasses. Page 18

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 1.4.4 Cab Metal Shop: In this area the body of the cabin is prepared. All the panels of the body are taken from the C.K.D; here all these are only assembled through different welding processes (i-e Spot welding and arc welding). Here the mostly commonly used welding process is spot welding process. This is the most effective welding process because it never develops any flaws. The welding process is facilitated or made easier through the use of jigs and fixtures. These jigs and fixtures are different for different models. Also at Ghandhara Nissan Limited they now used jigs and fixtures which can be adjustable for two or even at most for three models as well. When the assembling of the cab is completed than is move to paint shop, for painting, after which some other processing is done over cab, as scheduled or required.

1.4.5 Paint Shop: Then the body is taken into the paint booth for paint, Presently Electronically Deposit Paint (EDP) technology is being utilized at Ghandhara Nissan Limited, which makes UD brand trucks one of the favorite choices of its customers in Pakistan. Presently the paint shop in GNL Truck Plant is not utilized; therefore the cabs are move to the GNL Car Plant for painting. Before E.D paint, polymer is applied on the cab body surface, so that it can absorb the paint properly without developing a thick layer of paint on the cab body. Due to secrecy of this Technology, we were not allowed to visit and see the E.D Paint Process. There employee told us verbally about the process and also entertain our queries about the E.D.P Technology. After painting, the cabs are again transported to the GNL Truck Plant for further operations. Figure: Paint Shop

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 1.4.6 Trimming Shop: After Painting the Cab is sent to the trim line for further operations. As trimming is the process or act of adding decoration, therefore in trimming process the interior and exterior decorative work is done. It consists of fitting door, windows, seats and some electrical work.

Figure: Dash Board Installation

Figure: Trimming Line

The different types of work performed at trim line are: o o o o o o o o o

Door preparation Exterior preparation Head lining preparation Harness installation Blower/Ventilator Air ducting Pedal assembly Steering column Dash board installation

o o o o o o o o o

Front panel assembly Bonnet assembly Floor mate Seat installation Wind shelled installation External mirror Under body assembly Cab tilt mechanism Engine room installation

1.4.7 Tube Bending Shop: In this shop pipes of different sizes and shapes are cut and bend as required on the assembly line. This shop is the most simplest in the whole chassis assembly line. Jigs are mostly used in this shop, which is used in bending operation of the pipes. These pipes are used for various applications especially to handle the movement of the fluid in the brake and fuel system. Figure: Tube Bending Shop

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 1.4.8 Main Assembly Line/Chassis Assy Line: This is the main assembly line in which all the above mentioned subassemblies of different components are combined. The work here is divided into the following stages: 1st Stage: Shackle assy Front leaf spring assy (R/L) Rear leaf spring assy (R/L) Power steering assy Horn assy Shock absorber Gear leaf bracket (R/L) Stabilizer A.C (Front and Rear) Outer kigger Turnion Assy Tilt bracket assy Figure: Main Assembly Line nd

2 Stage: Front axle assy Rear axle assy Battery assy Linkage rod Pitman arm

Tires front and rear (both R/L) Spare wheel carrier assy Fuel tank assy Rear dead axle assy

3rd Stage: Air reservoir tank assy Brake booster assy Front brake tubing assy Rear brake tubing assy Chassis harness assy Fuel pipe assy

Brake valve assy (Front/Rear) Air brake pipe assy Clutch assy Magnetic valve assy (Exhaust Brake) Harness relay assy

4th Stage: Engine transmission assy Muffler assy Exhaust tube assy Hydraulic oil tube assy Hydraulic oil cooler assy

Gear level rod assy Engine stopper motor assy Engine drop on chassis Radiator assy Clutch adjustments

5th Stage: Cab mounting Battery cable and self connection Bumper adjustments Steering shaft adjustments

Accelerator cable adjustments Propeller shaft Hand brake cable Air filter Page 21

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 6th Stage: Clutch adjustments Brake adjustments Diesel filling (fuelling) Hydraulic oil for power steering To check the leakage To check Brake oil leakage To check Dash board meter To check Indicator (R/L) To check Head lights To check Oil light To check Gear light To check RPM

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 1.5 Quality Control and Quality Assurance Department: Quality control is a process by which entities review the quality of all factors involved in production. This approach places an emphasis on three aspects:  Elements such as controls, job management, defined and well managed processes, performance and integrity criteria, and identification of records.  Competence such as knowledge, skills, experience, and qualifications  Soft elements such as personnel integrity, confidence, organizational culture, motivation, team spirit, and quality relationships. The quality of the outputs is at risk if any of these three aspects is deficient in any way. Quality assurance, or QA for short is the systematic monitoring and evaluation of the various aspects of a project, service or facility to maximize the probability that minimum standards of quality are being attained by the production process. QA cannot absolutely guarantee the production of quality products. Two principles included in QA are:  Fit for purpose - the product should be suitable for the intended purpose; And  Right first time - mistakes should be eliminated. QA includes regulation of the quality of raw materials, assemblies, products and components, services related to production, and management, production and inspection processes. “Quality Control emphasizes testing of products to uncover defects, and reporting to management who make the decision to allow or deny the release where as Quality Assurance attempts to improve and stabilize production, and associated processes, to avoid, or at least minimize, issues that led to the defects in the first place”. The GNDL quality control and quality assurance teams are fully aware of all these and therefore they work with confidence in their respective areas. “They not only focused to find defective products but also work to reduce the production of defective products”. The GNDL quality control department main task is to inspect and check all the products which they directly order form there vendors and also C.K.D products as well. The quality control department is responsible to carry out the Page 23

{D-08-IN-314, 314, D-08-IN-331, D D-08-IN-337, D-08-IN-338, 338, D-08-IN-339} D inspection in the assembly plant (i-e (i all the sub-assembly assembly shops and main assembly line), final inspection, Pre-delivery Pre inspection (PDI) and also to maintain the quality of products in the warehouse.  1.5.1 Inspection During the Assembly Process: During the assembling process in the sub-assembly sub assembly shops and main assembly line make it obvious to achieve high quality products. The persons responsible for this inspection really make efforts to minimize the product ion of non-conforming conforming items. They have designed quality check sheets which help them to inspect processes stage wise and also without neglecting something during the process. The path which the quality control persons follow during the sub-assembly assembly shops and a assembly line inspection, final inspection and PDI is shown in the figure below:

Figure: Vehicle Assembly Inspection Process

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{D-08-IN-314, 314, D-08-IN-331, D D-08-IN-337, D-08-IN-338, 338, D-08-IN-339} D The check sheet which the quality control persons use during the main assembly line is shown in the figure below.. These check sheets make them able to effectively and efficiently identify different areas and persons working on the assembly line, whose are responsible for the production of defective products. The check sheet also enables the quality personals to identify the different stages form where the problems developed in the product, this help them in not only finding the defective products but also help them to reduce the production of defective products. Through the use of this simple yet very effective tool of quality QC tries to identify and maintain the production of quality products. But if they find out major problem they try to solve it out some other tools as well. Some other tools which they use are cause and effect diagram also know as fish bone diagram, 5 whys strategy which is a questions-asking questions method used to explore the cause/effect relationships underlying a particular problem. Ultimately, the goal of applying the 5 Whys method is to determine a root cause of a defect or problem. Page 25

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339}  1.5.2 Quality Check/Final Inspection: Even products are constantly inspected during the main assembly line but still after completion of the work at main assembly line, the vehicle is then to pass through the inspection/quality check. A group of two quality supervisors have to conduct this inspection. They have to check/inspect the vehicle and have to identify/find out all the defects from minor one to major one if there is any. If they observe any thing out of order, they first try to take the required corrective action at that specific location to correct it, if the problem they identified is a major one, then they mark the defective area (i-e whether there is any dent or color problem, this depend upon the nature of problem) and prepare a report of it, and forward it to the rework department. Then the workers there have to take the required corrective action to satisfy the issue. Also they communicate to the workers working on main assembly line, so that efforts are being made to reduce the production of defective products. Here some major tests are also conducted to find out some other problems as well; Especially Speedometer test, Brake control tests, Electric control test, etc. After the qualifying all these tests, the vehicles are than moved to the storage area. From there the vehicles are than handover to the customers in batches.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 1.6 Warehouse: A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities and towns. Warehouses are designed for the loading and unloading of goods. Stored goods include any raw materials, packing materials, spare parts, components, or finished goods associated manufacturing or production. Figure: Warehouse

Warehouse is an important part of the any manufacturing or servicing industry. Like other industries GNDL also give high emphasis to its warehouse inventory, which directly influence the production capability of the industry. In GNDL two types of inventory of parts is maintain, first is the one which is directly imported from Japan (i-e C.K.D parts) and second is the one which is locally manufactured through different vendors. A high priority is given to the first one. These parts are almost defect free. Sometime even in C.K.D parts defect may arise, but this might be due rough handling, or due to improper packaging used for transportation. The time required in receiving the parts from Japan is on the higher side, and also they supply parts in batches. Therefore when monthly master production schedule is developed keeping in view of the market and customers requirement. This production schedule is circulated to all the departments’ i-e warehouse, production department, and quality control department. Concern managers of these departments interact with each other and discuss the feasibility of the achieving the scheduled production target. They also discuss about the resources they will need in achieving the target, and compare it the resources they have. “A bird Eye-View of the Warehouse is shown in the figure below”.

Figure: Warehouse Layout Page 27

{D-08-IN-314, 314, D-08-IN-331, D D-08-IN-337, D-08-IN-338, 338, D-08-IN-339} D After discussions on schedule and proper planning on the quantity and priority of the products they develop list of all the parts they will required in achieving production target, this is known as BOM (Bill Bill Of Material). BOM help them in getting the full knowing of how much quantity of material will be required. After this the warehouse manager has to raise the required inventory through different channels (ie from C.K.D and Local vendors) vendors of the required materials.

Figure: BOM (Bill Of Material)

When it is decided to raise inventory of a certain part or material from local vendors, then the next step is to evaluate between various vendors. At this point the role of quality control department is very much essential, as they are responsible in selecting a vendor, if they select faulty vendor, it will result in the defective production. Page 28

{D-08-IN-314, 314, D-08-IN-331, D D-08-IN-337, D-08-IN-338, 338, D-08-IN-339} D To overcome all these issues, the GNDL quality assurance department has developed inspection programs, which helps them in evaluating the step by step inspection of the vendor products and maintain the required quality. This program focus on n the development of any part from its design phase till it is transfer to the GNDL territory. After receiving the part first the warehouse generate a good received report (GRR), and send a copy of GRR to quality department, against which they perform the required inspection. Now it is the responsibility of the quality control department, epartment, to inspect and control the quality of received goods, so that to make it possible to receive and accept only products of high/required quality. The quality control department have also pre-defined defined program for evaluating the quality of the received good. When they hey carried out the required inspection usually based on sample size, the QC department also prepared a report of either goods go no rejection note (GNRN) (GNRN (i-e if they find zero defects or find defects with-in in acceptance range) or goods rejection note (GRN) (i-e e if they find defect out side the control ntrol limits or acceptance range). If they find out some sort of discrepancy in the received goods which is not control limits or which will create some other Page 29

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} problems during the assembling process or it will not fitted satisfactorily during the assembling process, then they create a report known as goods rejection note (GRN). The copy of this report is also communicated to the vendor, and also in this report the GNDL quality control personnel forbid the vendor to also lift there rejected product form the company premises with in a defined span of time, usually it is in between 15 to 30 days.  Certifications: Ghandhara Nissan Limited always focus its customers and efforts has been made in fulfilling the all the requirements of the customers. Therefore in this customer driven economy, customers are expected to be the king of the market and are also free in making their decisions regarding the products. Therefore efforts are being made not only to attract customers but also to not to lose them. For fulfilling the customer’s needs and demands, the company is working to meet not only the quantitative aspect of the demand but also the qualitative aspect of the demand as well. GNDL produce products of high quality and standards, efforts are also being made to handover the right or zero defective products to the customers. All this is achieved through proper planning and setting standards, so every they produce products, would probably be of high quality with almost zero defects. GNDL also audited there system not only by the local auditors but from the international auditors as well. Also GNDL is certified ISO Quality Management System, Assurance System, etc.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 1.7 Final Remarks: These are different processes taking place in the GNDL different sections/Departments. The company main focus is its customers, and efforts are being made to fulfill their customer’s demands and requirements. The company has a good reputation and serves a good share in the local automobile sector in passenger’s cars, light commercial vehicles and heavyduty trucks and buses. Also GNDL is the only automobile company in the country which has a complete range of vehicles i-e passenger’s cars, light commercial vehicles and heavy-duty trucks and buses. GNDL is also expected to increase its share in local market in the up-coming years because in the local market the customers are attracted to the NISSAN products due its low cost, high quality and reliability.

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Chapter No: 02

Introduction to Lean Six Sigma

2 Lean Sigma – 2.1

An Over view

2 History of Lean Six Sigma 2.2 2 Adv of Integrating Lean Six Sigma 2.3 2 How are Lean Six Sigma Similar 2.4 2 How are Lean Six Sigma Different 2.5 2 Six Sigma Roles & Responsibilities 2.6 2 Implementation in Modern World 2.7

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 2.1 Lean Sigma – An Over view: Lean is an approach that seeks to improve flow in the value stream and eliminate waste. It’s about doing things quickly. Six Sigma uses a powerful framework (DMAIC) and statistical tools to uncover root causes to understand and reduce variation. It’s about doing things right (defect free). A combination of both provides an over-arching improvement philosophy that incorporates powerful data-driven tools to solve problems and create rapid transformational improvement at lower cost. The key is to find the optimal combination of both approaches. For example, adopting the Lean idea of focusing on what adds value and then using Six Sigma tools to help understand and reduce variation, when the value stream is agreed. This figure below shows the roots of Lean and Six Sigma and how they are converging.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 2.2 History of Lean Six Sigma: Lean Six Sigma was created by merging aspects of Lean and Six Sigma, successful quality management initiatives in their own right. Each of these evolved in turn from a series of prior initiatives in different industries and companies throughout the world.  Lean: Lean developed from the concepts comprising the Toyota Production System (TPS): elimination of waste of all types, including excess inventory and increased process speed. It established a focus on the customer definition of value and used that to determine the proper process timing and flow.  Six Sigma: Six Sigma grew in the 1980s, beginning at Motorola and spreading to companies including General Electric and AlliedSignal. It incorporated TQM as well as Statistical Process Control (SPC) and expanded from a manufacturing focus to other industries and processes.  Lean Six Sigma Origin: In the late 1990s, both AlliedSignal and Maytag independently designed programs which combined aspects of both Lean and Six Sigma. They cross-trained employees in both methodologies, creating project frameworks that combined the two techniques.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 2.2.1 A Brief History of Lean: Although there are instances of rigorous process thinking in manufacturing all the way back to the Arsenal in Venice in the 1450s, the first person to truly integrate an entire production process was Henry Ford. At Highland Park, MI, in 1913 he married consistently interchangeable parts with standard work and moving conveyance to create what he called flow production. The public grasped this in the dramatic form of the moving assembly line, but from the standpoint of the manufacturing engineer the breakthroughs actually went much further. Ford lined up fabrication steps in process sequence wherever possible using special-purpose machines and go/no-go gauges to fabricate and assemble the components going into the vehicle within a few minutes, and deliver perfectly fitting components directly to line-side. This was a truly revolutionary break from the shop practices of the American System that consisted of general-purpose machines grouped by process, which made parts that eventually found their way into finished products after a good bit of tinkering (fitting) in subassembly and final assembly. The problem with Ford’s system was not the flow: He was able to turn the inventories of the entire company every few days. Rather it was his inability to provide variety. The Model T was not just limited to one color. It was also limited to one specification so that all Model T chassis were essentially identical up through the end of production in 1926. (The customer did have a choice of four or five body styles, a drop-on feature from outside suppliers added at the very end of the production line.) Indeed, it appears that practically every machine in the Ford Motor Company worked on a single part number, and there were essentially no changeovers. When the world wanted variety, including model cycles shorter than the 19 years for the Model T, Ford seemed to lose his way. Other automakers responded to the need for many models, each with many options, but with production systems whose design and fabrication steps regressed toward process areas with much longer throughput times. Over time they populated their fabrication shops with larger and larger machines that ran faster and faster, apparently lowering costs per process step, but continually increasing throughput times and inventories except in the rare case—like engine machining lines—where all of the process steps could be linked and automated. Even worse, the time lags between process steps and the Page 35

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} complex part routings required ever more sophisticated information management systems culminating in computerized Materials Requirements Planning (MRP) systems. As Kiichiro Toyoda, Taiichi Ohno, and others at Toyota looked at this situation in the 1930s, and more intensely just after World War II, it occurred to them that a series of simple innovations might make it more possible to provide both continuity in process flow and a wide variety in product offerings. They therefore revisited Ford’s original thinking, and invented the Toyota Production System. This system in essence shifted the focus of the manufacturing engineer from individual machines and their utilization, to the flow of the product through the total process. Toyota concluded that by right-sizing machines for the actual volume needed, introducing self-monitoring machines to ensure quality, lining the machines up in process sequence, pioneering quick setups so each machine could make small volumes of many part numbers, and having each process step notify the previous step of its current needs for materials, it would be possible to obtain low cost, high variety, high quality, and very rapid throughput times to respond to changing customer desires. Also, information management could be made much simpler and more accurate. The thought process of lean was thoroughly described in the book The Machine That Changed the World (1990) by James P. Womack, Daniel Roos, and Daniel T. Jones. In a subsequent volume, Lean Thinking (1996), James P. Womack and Daniel T. Jones distilled these lean principles even further to five:  Specify the value desired by the customer  Identify the value stream for each product providing that value and challenge all of the wasted steps (generally nine out of ten) currently necessary to provide it  Make the product flow continuously through the remaining value-added steps  Introduce pull between all steps where continuous flow is possible  Manage toward perfection so that the number of steps and the amount of time and information needed to serve the customer continually falls  Lean Today: As these words are written, Toyota, the leading lean exemplar in the world, stands poised to become the largest automaker in the world in terms of overall sales. Its dominant success in everything from rising sales and market Page 36

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} shares in every global market, not to mention a clear lead in hybrid technology, stands as the strongest proof of the power of lean enterprise. This continued success has over the past two decades created an enormous demand for greater knowledge about lean thinking. There are literally hundreds of books and papers, not to mention thousands of media articles exploring the subject, and numerous other resources available to this growing audience. As lean thinking continues to spread to every country in the world, leaders are also adapting the tools and principles beyond manufacturing, to logistics and distribution, services, retail, healthcare, construction, maintenance, and even government. Indeed, lean consciousness and methods are only beginning to take root among senior managers and leaders in all sectors today.

2.2.2 A Brief History of Six Sigma: The roots of Six Sigma as a measurement standard can be traced back to Carl Frederick Gauss (1777-1855) who introduced the concept of the normal curve. Six Sigma as a measurement standard in product variation can be traced back to the 1920's when Walter Shewhart showed that three sigma from the mean is the point where a process requires correction. Many measurement standards (Cpk, Zero Defects, etc.) later came on the scene but credit for coining the term "Six Sigma" goes to a Motorola engineer named Bill Smith. (Incidentally, "Six Sigma" is a federally registered trademark of Motorola). In the early and mid-1980s with Chairman Bob Galvin at the helm, Motorola engineers decided that the traditional quality levels -- measuring defects in thousands of opportunities -- didn't provide enough granularity. Instead, they wanted to measure the defects per million opportunities. Motorola developed this new standard and created the methodology and needed cultural change associated with it. Six Sigma helped Motorola realize powerful bottom-line results in their organization - in fact, they documented more than $16 Billion in savings as a result of our Six Sigma efforts. Since then, hundreds of companies around the world have adopted Six Sigma as a way of doing business. This is a direct result of many of America's leaders openly praising the benefits of Six Sigma. Leaders such as Larry Bossidy of Allied Signal (now Honeywell), and Jack Welch of General Electric Company. Rumor has it that Larry and Jack were playing golf one day and Page 37

{D-08-IN-314, 314, D-08-IN-331, D D-08-IN-337, D-08-IN-338, 338, D-08-IN-339} D Jack bet Larry that he could implement Six Sigma faster and with greater results at GE than Larry did at Allied Signal. The results speak for themselves. Six Sigma ma has evolved over time. It's more than just a quality system like TQM or ISO. It's a way of doing business. As Geoff Tennant describes in his book Six Sigma: SPC and TQM in Manufacturing and Services: "Six Sigma is many things, and it would perhaps be easier ea sier to list all the things that Six Sigma quality is not. Six Sigma can be seen as: a vision; a philosophy; a symbol; a metric; a goal; a methodology." We couldn't agree more. Six Sigma is a data--based based methodology to improve performance by reducing variability. ility. It requires thorough understanding of product and process knowledge and is completely driven d riven by customer expectations. In other words, it is a methodology to achieve 3.4 defects per million opportunities. It can also be used to bring breakthrough improvements in the process. It focuses on the bottom-line bottom line and is a proven methodology for problem solving.  Goals of Six Sigma: 1. 2. 3. 4.

To reduce variation To reduce defects /rework To improve yield /productivity To enhance customer satisfaction

5. To improve the bottom-line bottom 6. To improve top-line line 7. Shortening cycle cycle-time

 Sigma Level Vs Number of Defects: Defects

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 2.3 Adv of Integrating Lean Six Sigma: What are the advantages of integrating Lean and Six Sigma? Integrating Lean and Six Sigma creates a win-win situation. The philosophy of Lean provides the strategy and creates the environment for improving flow and eliminating waste. Empowered staff are encouraged to continuously improve to create value adding opportunities that otherwise would not be identified. Six Sigma helps to quantify problems, makes evidence based decisions (this prevents wasting time on anecdotal evidence), helps to understand and reduce variation and identifies root causes of variation to find sustainable solutions. Furthermore, it quantifies the financial benefits and savings. This helps to focus efforts in the areas that offer the most potential for improvement. A combination of both can provide the philosophy and the effective tools to solve problems and create rapid transformational improvement at lower cost. Potentially, this could increase productivity, improve quality, reduce costs, improve speed, create a safer environment for patients and staff and exceed customer expectations.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 2.4 How are Lean Six Sigma Similar: Lean and Six Sigma are both customer-focused process improvement methodologies. They both follow the traditional quality improvement steps: 2.4.1 Identify the project: a. Nominate projects b. Evaluate projects c. Select a project d. Ask: Is it quality improvement? 2.4.2 Establish the project: a. Prepare a statement of goals b. Select a team c. Verify the statement of goals 2.4.3 Diagnose the cause: a. Analyse symptoms b. Confirm or modify statement of goals c. Formulate theories d. Test theories e. Identify root cause(s) 2.4.4 Remedy the cause: a. Evaluate alternatives b. Design remedies c. Design controls d. Design for culture e. Prove effectiveness f. Implement 2.4.5 Hold the gains: a. Design for effective quality controls b. Foolproof the remedy c. Audit the controls 2.4.6 Replicate results and nominate new projects: a. Replicate the project results b. Nominate new projects

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} As we can see in Table, both Lean and Six Sigma uncover similar issues.

Table: A comparison of common problems faced by lean and six sigma

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 2.5 How are Lean Six Sigma Different: At one level, both Lean and Six Sigma are improvement methodologies. But as you investigate further, the contrasting aspects of the two approaches becomes apparent. Lean is often seen as an efficiency approach which focuses on improving flow in the value stream and eliminating waste. It is more than this. Lean is a philosophy, not simply an exercise in eliminating waste. Lean is much more than episodic Kaizen (rapid improvement) events, it is a continuous improvement approach. It asks the question, “Why does this process exist at all? What are the value and the value stream?” Six Sigma, by contrast, is often considered an effectiveness approach which focuses on the elimination of defects and reducing variation. It is seen as working best in an environment where there is variation. Six Sigma starts with “How can we improve this process?” It does not ask “Why does it exist at all? Six Sigma is not just statistics, in its best incarnation; one integrates experience, historical, prospective, and data to make decisions. Six Sigma projects can last from hours to months, the methodology is not designed to tackle every problem in a set amount of time, but it is designed so projects do not take any longer than necessary.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 2.6 Six Sigma Roles & Responsibilities: Six Sigma has a martial arts convention for naming many of its professional roles. The chart below describes how these roles are typically defined.

Leaders and Champions usually receive high-level training on the technical aspects of Six Sigma and specific training on how to lead an initiative. At the "Belt" level, each candidate is assigned an initial "training project" that he/she will work on during the formal training period. Candidates attend classroom training for a week, work on their projects for three weeks, return to class for another week, and so on until they have acquired all the skills appropriate to their role.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 2.7 Implementation in Modern World: Integrating Lean Six Sigma throughout an organization’s core business operations to achieve early benefits and full self-sustainability necessitates attention to each of the ten input factors in the dual Input-Process-Output (IPO) diagram, above: 2.7.1 Initialization: The Initialization Phase presumes that the chief executive within the business understands the nature of Lean/Six Sigma and how its implementation will favorably influence the business’ core enterprise measures and scorecards. With the chief executive’s decision to proceed, a corporate-level deployment leader having direct line-of-sight reporting to the executive should be identified. A series of policies, guidelines and rules must next be developed with involvement of the deployment leader, one or more steering committees and selected corporate functions which include finance, human resources, quality, communications and others. 2.7.2 Execution: Having completed Initialization, the organization is now ready to select the right full-time people, initial projects and training. Each project must clearly address one or more business goals thereby contributing to one or more core enterprise measures. Each project must also be doable within three to four months, so careful upfront scoping is essential. Projects must be continually tracked and updated for line management during existing business reviews. 2.7.3 Assessment: While projects end and new projects are commissioned, an objective versus anecdotal assessment of benefits is recommended to:  Ensure that the key elements of the organization’s Lean/Six Sigma implementation plan are occurring in a timely fashion.  Address any gaps in performance to ensure timely benefit realization.  Promote knowledge, discipline, accountability and alignment of management.  Promote early self-sustainability. Follow-on assessments are recommended and should be performed twice per year until full self-sustainability is achieved. Using the three-phased implementation approach summarized above, Air Academy Associates has the passion, expertise and enthusiasm to assist organizations within industry, government and academia in the full implementation of Lean/Six Sigma. Annual benefits of 2% of revenue and more, coupled with early self-sustainability, will be realized if a tailored Page 44

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} approach described above is selected by the executive with Air Academy as the deployment partner. The following companies claim to have successfully implemented Six Sigma in some form or another:            

Pakistan International Airlines The McGraw-Hill Companies Ford Motor Company Pakistan State Oil US Marine Corps Bank of America Samsung Group General Electric United Biscuits Alaska Airlines Amazon.com Canada Post

           

Siemens AG US Air Force Air Canada Air France Vodafone LG Group Whirlpool US Army US Navy Motorola PepsiCo Boeing

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Chapter No: 03

Lean Tools and Wastages

3.1 Lean Manufacturing - An Overview 3 What is Lean Manufacturing 3.2 3 Principles of Lean Manufacturing 3.3 3 Lean Goals and Strategy 3.4 3 Manufacturing Wastages 3.5 3 Methodologies of Lean 3.6

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 3.1 Lean Manufacturing - An Overview : Lean principles come from the Japanese manufacturing industry. The term was first coined by John Krafcik in a Fall 1988 article, "Triumph of the Lean Production System," published in the Sloan Management Review and based on his master's thesis at the MIT Sloan School of Management. Krafcik had been a quality engineer in the Toyota-GM NUMMI joint venture in California before coming to MIT for MBA studies. Krafcik's research was continued by the International Motor Vehicle Program (IMVP) at MIT, which produced the international best-seller book co-authored by Jim Womack, Daniel Jones, and Daniel Roos called The Machine That Changed the World. A complete historical account of the IMVP and how the term "lean" was coined is given by Holweg (2007). For many, Lean is the set of "tools" that assist in the identification and steady elimination of waste (muda). As waste is eliminated quality improves while production time and cost are reduced. Examples of such "tools" are Value Stream Mapping, Five S, Kanban (pull systems), and poka-yoke (errorproofing). There is a second approach to Lean Manufacturing, which is promoted by Toyota, in which the focus is upon improving the "flow" or smoothness of work, thereby steadily eliminating mura ("unevenness") through the system and not upon 'waste reduction' per se. Techniques to improve flow include production leveling, "pull" production (by means of kanban) and the Heijunka box. This is a fundamentally different approach from most improvement methodologies, which may partially account for its lack of popularity. The difference between these two approaches is not the goal itself, but rather the prime approach to achieving it. The implementation of smooth flow exposes quality problems that already existed, and thus waste reduction naturally happens as a consequence. The advantage claimed for this approach is that it naturally takes a system-wide perspective, whereas a waste focus sometimes wrongly assumes this perspective. Both Lean and TPS can be seen as a loosely connected set of potentially competing principles whose goal is cost reduction by the elimination of waste. These principles include: Pull processing, Perfect first-time quality, Waste minimization, Continuous improvement, Flexibility, Building and maintaining a long term relationship with suppliers, Autonomation, Load leveling and Production flow and Visual control. The disconnected nature of some of these principles perhaps springs from the fact that the TPS has grown pragmatically since 1948 as it responded to the problems it saw within its own production facilities. Thus what one sees today is the result of a 'need' driven learning to improve where each step has built on previous ideas and not something based upon a theoretical framework. Page 47

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} Toyota's view is that the main method of Lean is not the tools, but the reduction of three types of waste: muda ("non-value-adding work"), muri ("overburden"), and mura ("unevenness"), to expose problems systematically and to use the tools where the ideal cannot be achieved. From this perspective, the tools are workarounds adapted to different situations, which explains any apparent incoherence of the principles above.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 3.2 Lean Manufacturing: What is Lean Manufacturing? 3.2.1 History Of Lean Manufacturing: It is a popular fact that JIT system started in the initial years after the World War II in Japan for the Toyota automobile system. Toyoda family in Japan decided to change their automatic loom manufacturing business to the automobile business. But they had few problems to overcome. They could not compete with the giants like Ford in the foreign markets. Therefore Toyota had to depend upon the small local markets. They also had to bring down the raw materials from outside. Also they had to produce in small batches. They haven’t had much of capital to work with. Therefore capital was very important. With these constrains Taiichi Ohno took over the challenge of achieving the impossible. With his right hand man Dr. Sheigo Shingo for next three decades he built the “Toyota production system “or “the Just In Time system”.

Although the concept was mastered in Japan for the Toyota production system, the roots of this concept goes into the sixteenth century. Eli Whitney’s concept of interchangeable parts said to be the very initial beginning of this concept. But first or at least famous implementation of something similar to JIT happened a century later in manufacturing of Ford Model T (in 1910) automobile design. Manufacturing was based on line assembly. This system developed in Toyota from 1949 to 1975 virtually unnoticed by the others even within Japan. But in the oil crisis in 1973 Japan economy suffered and most of the industries had losses. But Toyota overcame these problems. They stood out from the rest. This was the eye opener for other Japanese firms to implement this system. But this system got popular in the western world with the book “The machine that change the world” written by James Womack in 1990. This book was aimed to give the history of the automobile with the plant details of some of these manufacturers. He gave the name “Lean Manufacturing to this system”. This was the eye opener for the western world about this system. Thereafter the concepts were practiced all over the world. Experiences and knowledge vastly improved the system. But there were many people who just tried to use the tools in lean manufacturing without understanding the meaning of them. They eventually failed. But there are number of places this system is working well.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 3.2.2Definition Of Lean Manufacturing: Lean manufacturing defines the value of a product or a service with the customer point of view. Product or service you are selling to them. They will evaluate your product or the service by looking at how Customers do not mind how hard you work or what is the technology you used to create the well this is going to fulfill their requirements. The complete elimination waste is the target of the system. This concept is vitally important today since in today’s highly competitive world there is nothing we can waste. There are some terms that need to be properly defined if a company wishes to learn what lean manufacturing is? Some of these terms used in lean manufacturing systems are the following: 1. Value is anything that a prospective customer will be willing to buy or pay for. It is the responsibility of the lean manufacturing strategy to deliver what the customer wants exactly. 2. The value added is any activity that hopes to increase the form of the market or the function of the product and service. This value added is basically the value that was discussed in number one. 3. Takt time is the demand rate of a customer. Takt time aims to set the pace or rhythm of production of goods to be able to match the demand rate of customers. The takt time is the heartbeat of any lean manufacturing system. 3.2.3 A Waste According To Lean Manufacturing: In lean manufacturing the wastes are defined as anything which does not add value to the end product. Of cause there are wastes that can be avoided. But some are unavoidable to many reasons. Most of these wastes are avoidable. Even worst is that they are avoidable with very little effort, if you see them as wastes.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 3.3 Principles of Lean Manufacturing: We shall learn some of the basic lean manufacturing principles with some keywords used in lean manufacturing. By understanding these key words you will understand the basics of lean manufacturing, which is very important in success. Lean manufacturing defines the value of a product or a service with the customer point of view. Customers do not mind how hard you work or what is the technology you used to create the product or service you are selling to them. They will evaluate your product or the service by looking at how well this is going to fulfill their requirements. There will be many wastes appearing in your organization. You have to identify the wastes to remove them. You have to find many and many ways to get read of them. Keep in mind, every waste shows an opportunity for the improvement. When you identify the wastes and categorize them in to avoidable and unavoidable, you have to think about removing the wastes from the system. You must clearly understand that lean manufacturing always talks about removing, not minimizing. These two words have very different meanings. Whenever you talk about minimizing, it implies that there are wastes in the system in different quantity. But what lean manufacturing does is, it aims at removing the wastes from the system .Simply when there is a waste. Every problem in the system has a cause for it. Sometimes one or more root causes for a problem. One root cause even can contribute for more than one problem. When you clearly understand the problems and their causes, then it is the time to find out the solutions. There are many ways that you can find solutions in lean manufacturing. Lean manufacturing solutions are more often very simple and very effective. When you find the solution to the problem, then it is the time to implement the solution and to make sure that you achieve your objectives. Problems are solved in this way over and over again. This is the cyclic concept of lean manufacturing. Lean manufacturing believes that each and every activity is interconnected. Therefore advancement in one place will increase the system as a whole. Therefore this cycle of identifying, finding root causes, finding solutions and implementing will go on and on again and again. This process will continuous until there are wastes to be removed.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} Lean manufacturing give priority to the simple, small, continuous improvement, rather innovations. Of cause there is enough room to absorb big advancements in the system. But the priority is set for the continuous improvement. These improvements might be very simple as adjusting the height of a seat or changing the position of the tools which you use frequently. Every simple improvement will improve the system as whole. Therefore final objective is one more step closer as an organization. Lean manufacturing is the way to never ending continuous improvement. This is also known as the Kaizen in lean manufacturing.

 Principles of Lean: The five-step thought process for guiding the implementation of lean techniques is easy to remember, but not always easy to achieve: 1.

Specify value from the standpoint of the end customer by product family.

2.

Identify all the steps in the value stream for each product family, eliminating whenever possible those steps that do not create value.

3.

Make the value-creating steps occur in tight sequence so the product will flow smoothly toward the customer.

4.

As flow is introduced, let customers pull value from the next upstream activity.

5.

As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, begin the process again and Page 52

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} continue it until a state of perfection is reached in which perfect value is created with no waste.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 3.4 Lean Goals and Strategy: The espoused goals of Lean manufacturing systems differ between various authors. While some maintain an internal focus, e.g. to increase profit for the organization, others claim that improvements should be done for the sake of the customer. Some commonly mentioned goals are:  Improve quality: To stay competitive in today's marketplace, a company must understand its customers' wants and needs and design processes to meet their expectations and requirements.  Eliminate waste: Waste is any activity that consumes time, resources, or space but does not add any value to the product or service. See Types of waste, above.  Reduce time: Reducing the time it takes to finish an activity from start to finish is one of the most effective ways to eliminate waste and lower costs.  Reduce total costs: To minimize cost, a company must produce only to customer demand. Overproduction increases a company’s inventory costs because of storage needs. The strategic elements of Lean can be quite complex, and comprise multiple elements. Four different notions of Lean have been identified:  Lean as a fixed state or goal (Being Lean)  Lean as a continuous change process (Becoming Lean)  Lean as a set of tools or methods (Doing Lean/Toolbox Lean)  Lean as a philosophy (Lean thinking)

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 3.5 Manufacturing Wastages: Waste is defined as “anything that does not add value to the final product”.Every organization wastes majority of their resources. Therefore it is worthier to have a closer look at these wastes. For the ease of understanding these and due to many other similarities, these wastes are categorized in to seven categories. In some instances one extra category is added to make the total of eight waste categories. Every waste you will come across in your organization or even in day-to-day life will fall into one of these categories. The following "seven wastes" identify resources which are commonly wasted. They were identified by Toyota’s Chief Engineer, Taiichi Ohno as part of the Toyota Production System: 3.5.1 Transportation (Moving products that are not actually required to perform the processing) 3.5.2 Inventory (All components, work in process (WIP) and finished product not being processed) 3.5.3 Motion (People or equipment moving or walking more than is required to perform the processing) 3.5.4 Waiting (Waiting for the next production step) 3.5.5 Over Production (Production ahead of demand) 3.5.6 Over Processing (Resulting from poor tool or product design creating activity) 3.5.7 Defects (The effort involved in inspecting for and fixing defects) Taking the first letter of each waste, the acronym "TIM WOOD" is formed. This is a common way to remember the wastes. The other alternative name that can used to remember is "DOT WIMP". Later an eighth waste was defined by Womack et al. (2003); it was described as manufacturing goods or services that do not meet customer demand or specifications. Many others have added the "waste of unused human talent" to the original seven wastes. These wastes were not originally a part of the seven deadly wastes defined by Taiichi Ohno in TPS, but were found to be useful additions in practice. 3.5.8 Underutilization of Employees (Unused human talent)

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 3.5.1 Transportation: No matter how well you do transporting. It does not add value to the end product. Therefore simply transportation is one of the wastes that have to be eliminated from the production system. This accounts for the quality defects, maintenance of a higher WIP, and additional cost of transporting the goods. Transportation often caused by poor work place organization. Inflexibility of the layout plays a big role here. This can be avoided with careful redesigning of the layouts. 3.5.2 Inventory: Inventory, be it in the form of raw materials, work-in-progress (WIP), or finished goods, represents a capital outlay that has not yet produced an income either by the producer or for the consumer. Any of these three items not being actively processed to add value is waste. Inventory is a direct result of over production and waiting. Every imperfection in the system will create a requirement for the Work In Process (WIP). Therefore WIP also known as the mirror of the wastes that system has. But WIP itself becomes a waste due to many consequences. It blocks money in the form of not finished products. It also reduces the flexibility of the production facility by increasing the change over time between different styles. It hides quality damages, and will only be revealed when a considerable damage is done. Higher WIP also requires larger floor space. This will also affect the appearance of the work place badly. Therefore if you want to be perfect, just target for a system where there is no requirement for WIP. 3.5.3 Motion: This waste is often overlooked. When performing a certain task people have to repeat their motions again and again. Although we do not realize, in many places people will have to move, bend or reach to collect some part or to reach a machine. If a time study can be done to check the percentage of the time for these unnecessary movements, you will see it is actually very high than you think. Even the other ergonomic conditions like correct lighting, tool arrangement, work process management is essential to achieve a good productivity from the people poor conditions are not good for the health of the worker obviously. Also this will waste large amounts of time. Workplaces will become very untidy. Workers will get tired easily. The reason for this is poor workplace organization. To overcome this problem, a detailed study has to be carried out about working conditions. Then they have to be re arranged to eliminate these problems. Even some simple equipment change Page 56

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} like from normal chairs to movable and adjustable chairs will solve some problems. But some problems will need very good workplace engineering to overcome. 3.5.4 Waiting: In conventional batch processing, some studies show that 90% of the time goods are waiting to be processed. Some even say this is higher as 99%. Even a single minute lost in waiting can’t be recovered in the process there after. Think carefully. Analyze how long the products are waiting against the time used for processing them. This is one big contributory factor for the higher lead times. This simply means you take 100 hours or more to complete work which is worthier only 10 hours. Ninety hours or more is lost and added to the lead time. No waiting means you can deliver the goods within 10 days which actually took 100 days earlier. This will also reduce the WIP and tons of related problems. Also considerable savings on the production space and reduction in work in capital can be achieved. Among the cause of this problem is due to the high volume machinery, unawareness of the people, and conventional thinking of the people play leading roles. 3.5.5 Over Production: The word over production can be used to describe a type of waste which is in most of the places and we never think this as a waste. This is producing something before it is actually required. Lean manufacturing always trust on the pulling rather than pushing. This means that every product or a service must be pulled from the process immediately after that. Therefore a product or a service must be pulled by the customer. In much more simpler way, customer must have the real requirement for the product or the service being produced. If you produce the goods without any stimulation from the market, then either you will have to keep the product with you until there is a market for that product or you have to create the market stimulation with huge advertising campaigns etc. Over production accounts for many loses. One is the waste due to unnecessary parts. This also will make the WIP higher. Flow will not be smoother. This obviously leads to low quality products and defects as quality problems are hidden in the WIP maintained due to over production. 3.5.6 Over Processing: Over-processing occurs any time more work is done on a piece than what is required by the customer. This also includes using tools that are more precise, complex, or expensive than absolutely required. Page 57

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} This is the using incorrect tools for the job. This does not mean that you should use complicated or expensive tools to do the job. It is about using the correct tool for the correct job. Low cost automation is one program where Toyota found to be really effective. Developing such tools can be done with the aid of workers, because they know the job they do more than anyone. Then this will become a very good way of motivating people as well. The enemy for this system is mind set of the people who work in the organization. People naturally think like best equipment for the job is expensive and complex. So how to overcome this problem, which will not only save money for you but also motivate people immensely. Very simple change in the mind set of the people by education and training. Also create a culture of continuous improvement. Then people will always look for the better ways of doing things, which creates opportunity for these kinds of innovations. 3.5.7 Defects: All above are wastes themselves but they lead to another waste which is extremely costly. These are the defected product. In the case of services this is the poor quality of the service. Defects call for higher inspection and related costs. If you find a defect, you will have to remove it. The raw materials, time, effort and the money put in to this product will be wasted. Even worst, if this defected product goes to the customers hand you will lose the image for your organization. Also there is a risk of claims. In the long run this will be a big cost for the organization. Damage in a single rupee product can create millions of rupees of lost to your organization. As mentioned earlier all the above wastes, poor raw material, mistakes from the workers, problems in the system, machinery problems and much more accounts for this problem. So removing this from the system is long time task. Making the system fool proofed, getting good quality raw material, educating people are among the solutions for this. 3.5.8 Underutilization of Employees: The underutilization of employees is also considered as waste, But most people do not think this as a waste. Every worker, even the people do the most routine job in the organization will have something to contribute to the organization than their muscle power. Think about a floor cleaner. If you ask him, how to clean the floor much faster, I am sure they will come up with some fantastic ideas. Page 58

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} What lean manufacturing tries to do is to get ideas from all level of the people in the organization and to use them for the betterment of the organization. Therefore not making the full use of the human resource is a waste. Wasting this without using to fight against the wastes is the biggest loss for the organization. Can All The Wastages Be Avoided

?

Yes, all these wastes can be avoided by implementing lean manufacturing techniques & tools which are very important for the manufacturing industries. Lean tools have the series of tools which are listed below and some of these are discussed briefly. The Above answer sounds good in the system in theory, but in practical situations removing all the wastes might not be possible. Some might be not possible due to technical concerns; some are due to various obvious factors. For an example you have to transport the goods at least a little amount even within the working flow without adding any value to that. Anyway you will have to get down the raw materials for the manufacturing of product from far places. These can not be avoided. If you try to avoid some of these wastes that will cost you much more in the bigger picture. Always remember the bigger picture is what that always matters. Therefore it is very important to categorize the wastes according to availability of them. When you do that all the wastes in the organization will fall in to the one of the following two categories.  Wastages that are Avoidable  Wastages that are Unavoidable Deciding what are the avoidable and what are unavoidable will require some good decision making. Lot of learning, experimenting and thinking has to go into this process. When you decide on this or at least have some idea about the wastes which are avoidable, then it is the time to understand the importance of removing each waste from the system. A tool like pareto curve will be an ideal tool to understand the problems according to their importance of removing them. Always you have to give the importance to the bigger picture to stop creating a new waste in the system in the effort of removing one. Always an overall reduction should be there. What about the other wastes which we thought un removable. Should they remain untouched? No, not at all. With the time there are new technologies, and many developments coming on. Also when you are removing some of the problems from the avoidable category, you fill find the ways to tackle some problems in this category as well. Therefore nothing is permanent. You will get tons of chances to overcome these problems. So stay focused. . . . . Page 59

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 3.6 Methodologies of Lean: Lean manufacturing is based on continuous finding and removal of the wastes. Value is defined from the customer’s point of view. Therefore all the tools in lean manufacturing aim to identify and remove wastes from the system continuously. Lean It is true to say base of lean manufacturing is its concepts. But lean tools are very important too. They help in implementing, monitoring, and evaluating lean efforts and its results. On the other hand if used without proper understanding this can spoil your lean efforts. So it is very important to understand the tools before thinking about using them Some of the basic tools of Lean Manufacturing are:                  

5S Error proofing (Poka-Yoke) Just In Time Kaizen Kanban Pull system Work leveling – Heijunka Work cells Quick Changeover or SMED TAKT Time Theory of Constraints Value Stream Mapping Workflow Diagram Total Productive Maintenance Visual workplace Cause and Effect Diagram 5 Why Technique Six Sigma

3.6.1 5S: 5S is a system of workplace organization. It is fundamental to the implementation of the Lean Manufacturing principles. The 5S are :     

Sieri. Sort (Housekeeping) Seiton. Set in order (Workplace Organization) Seison . Shine (Cleanup) Seiketsu. Standardize (Maintain Cleanliness and Order) Shitsuke. Sustain (Discipline) Page 60

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Seiri.Sort: Sort is a process of removing every non essential item from the workplace. Examples of o f items that need sorted are extra tables, benches, cabinets, tools, inventory, cleaning supplies, rags, and documents. All of these extra items just get in the way of efficient production. Seiton.Streighten Seiton.Streighten (Set in Order): Set in Order is the process of organizing the remaining items after the “sort” process is completed. For example, all tools used in a setup on a machine should be placed as close as possible to where they will be used. Seison.Sweep Seison.Sweep (Shine): Shine is the third “S”. It is the process of cleaning the work area and any machinery or equipment in it. The ideal lean manufacturing implementation is to keep the equipment in the same or better shape than when it was delivered. Seiketsu.Standardize: Seiketsu.Standardize: Standardize is the process of making the first three S’s a habit. Many companies have went through cleaning and organizing systems over the years only to see it slip away back to an unorganized facility. Standardize is one of the most important of the 5S Page 61

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} system. For example, if a machine is to be wiped clean at the end of a shift, it should be done every single day without fail. Shitsuk.Sustain: The last S is Sustain, which is the one most companies failed to employ over the years. Many company managements blamed employees for this failure. However, once managements realize the benefits of 5S, they also realize it is management that stood in the way of sustaining the organization over the years. Each component of the 5S is necessary to derive the benefits and sustain workplace organization.

3.6.2 Poka Yoke

(ポカヨケ)

:

Poka-Yoke is a Japanese term that means "fail-safeing" or "mistake-proofing". A poka-yoke is any mechanism in a lean manufacturing process that helps an equipment operator avoid (yokeru) mistakes (poka). Its purpose is to eliminate product defects by preventing, correcting, or drawing attention to human errors as they occur. The concept was formalized, and the term adopted, by Shigeo Shingo as part of the Toyota Production System. It was originally described as baka-yoke, but as this means "fool-proofing" (or "idiot-proofing") the name was changed to the milder poka-yoke. More broadly, the term can refer to any behavior-shaping constraint designed into a process to prevent incorrect operation by the user. Similarly, a constraint that is part of the product (or service) design is considered DFM or DFX.Contents.  Implementation in Manufacturing: Poka-yoke can be implemented at any step of a manufacturing process where something can go wrong or an error can be made. For example, a jig that holds pieces for processing might be modified to only allow pieces to be held in the correct orientation,[5] or a digital counter might track the number of spot welds on each piece to ensure that the worker executes the correct number of welds. Shigeo Shingo recognized three types of poka-yoke for detecting and preventing errors in a mass production system: o The contact method identifies product defects by testing the product's shape, size, color, or other physical attributes. o The fixed-value (or constant number) method alerts the operator if a certain number of movements are not made. o The motion-step (or sequence) method determines whether the prescribed steps of the process have been followed. Page 62

{D-08-IN-314, 314, D-08-IN-331, D D-08-IN-337, D-08-IN-338, 338, D-08-IN-339} D Either the operator is alerted when a mistake is about to be made, or the poka-yoke yoke device actually prevents the mistake from being made. In Shingo's lexicon, the former implementation would be called a warning poka -yoke, while the latter would be referred referr to as a control poka -yoke. Shingo argued that errors are inevitable in any manufacturing process, but that if appropriate poka-yokes poka are implemented, then mistakes can be caught quickly and prevented from resulting in defects. By eliminating defects at the source, the cost of mistakes within a company is reduced. Poka yoke system is generally known as PKS.  Implementation in Service Industries: Industries Poka-yoke can also be implemented in service industries. Call Centers have long had a challenge with compliance. Poor training, fatigue, forgetfulness, and the limits on human consistency all can lead to agents skipping key steps in the process. Disclosures are a good example. When a consumer makes a purchase of some kind, the call center agent is often required to provide the customer with key information. What the customer purchases dictates the disclosures that are required. It can be hard to train the agents in all the required combination of disclosures or the agents can sometimes forget to read the disclosures. Using Agent-assisted Agent assisted automation, the agents can provide the customers with all the required disclosures using pre -recorded audio files. By integrating the Agent-assisted A assisted Automation with the customer relationship management software, you can ensure that the agent cannot process/complete the order until the required disclosures are played 3.6.3 JIT – The Backbone of Lean Manufacturing : JIT is the backbone of the lean manufacturing. Actually the concept grew first with the Toyota system was the JIT, then it developed to the lean manufacturing. JIT is one key way to get read of most of the wastes.JIT concepts are based on the pull demand model. Everything is done when they are actually needed. JIT has three main areas.  JIT purchasing  JIT Production 

JIT distribution

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JIT Purchasing is done when the goods are actually needed by the production. No large stocks are maintained. Often purchasing is done in small batches continuously. This allows production to run smoothly. This will also reduce the costs due to storage, and also will minimize the degrading of the goods. This way it is easy to monitor quality defects and correct them if there are any in the subsequent batches. Also this will help to achieve shorter leadtimes in the production. But achieving this has problems to overcome. First of all the supplier base of the organization should be manageable. Then they have to agree to produce in small batches and send them in the continuously. Minimum order quantity issues must be solved. The supplier must be able to adjust to the changes fast and also he must be able to keep the correct quality from batch to the other. And there may be much more problems to overcome. To overcome this corporate level involvement is very much required. When achieved this will mutually benefit both you and your supplier.

JIT Manufacturing might be the most talked topic of all lean manufacturing techniques. This requires very good internal coordination and planning. Even within the manufacturing area, pull demand concepts are used. The items are produced only when they are required by the process following it. No stocks are maintained. This will reduce the costs due to WIP. This will also reduce the cycle time of the product, and therefore will improve the flexibility of the system immensely. This will also reduce the lead time considerably. Quality defects will be much lower since WIP is very low. Page 64

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Achieving JIT manufacturing is again not an easy task. Most of the time this requires a radical change in the organization. Work will change from the conventional departmental thinking to the new team thinking. Manufacturing will change from the line system to the module or work cell based manufacturing. Every problem will cause the system to stop since there is no WIP to work with. All the problems hidden in the WIP will be revealed. Some people might not like the system. In short there will be tons of problems to be solved. This requires some courage and temperament. JIT Distribution is to achieve a smooth production without any delays in production and to distribute the goods in small batches to the buyers in continuous basis, it is very important to keep a good transportation management system. Generally this is known as the JIT distribution. Without this any of the lean objectives might not be possible. Most often this function is given to a third party logistic company, who will take care of JIT distribution. On time, uninterrupted data exchange is very vital in this. Therefore it is advisable of using electronic way of data interchange. It is also very much necessary to automate this data transfer function to avoid any delays and mistakes in duplication.

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3.6.4 Kaizen

(改善)

:

Kaizen is another pervasive tool since it is a focused methodology that uses teams for making improvements. Analysis indicates that this is the best systematic approach for an improvement project. It is a continuous improvement process that empowers people to use their creativity; Kaizen can be used to fix specific problems, workflow issues, or a particular aspect of a business.  WHAT IS KAIZEN? Kaizen means "good change” which has been interpreted to mean continuous incremental improvement.  GOAL OF KAIZEN? This activity is highly focused & action oriented which empowered team so that they can take immediate action to improve a specific process. Kaizen (Japanese terminology for "improvement" or "change for the better") refers to a philosophy or practices that focus upon continuous improvement of processes in manufacturing, engineering, supporting business processes, and management. It has been applied in healthcare, government, banking, and many other industries. When used in the business sense and applied to the workplace, kaizen refers to activities that continually improve all functions, and involves all employees from the CEO to the assembly line workers. It also applies to processes, such as purchasing and logistics that cross organizational boundaries into the supply chain. By improving standardized activities and processes, kaizen aims to eliminate waste. Kaizen was first implemented in several Japanese businesses after the Second World War, influenced in part by American business and quality management teachers who visited the country. It has since spread throughout the world and is now being implemented in many other venues besides just business and productivity. Based on quantitative analysis, a good starting point is to look at the way people work – Identifying waste through a time and motion study of tasks with input from both workers and managers. Page 66

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339}  KAIZEN CONCEPT:

Steps For Conducting KAIZEN Activity

KAIZEN Main Elements

Prepare and train the team Analyze present method Brainstorm, test and evaluate ideas Implement and evaluate improvements. Results and follow up.

Teamwork Personal discipline Improved morale Quality circles Suggestions for improvement

 Six Basic Rules of Kaizen? o Respect Others: Particularly the local operators, you are in their living room. o Document reality: If you make changes based on data, the data should be based on reality. o Do Your Share: Everyone has to contribute. o Try Something New: Be open minded - try it instead of racking your brain for reasons why it won’t work (try-storming). o Ask Why (The 5 why’s): Gain complete understanding, assume nothing. o Be Safe / Think Safe: Both in your actions and in what you implement.

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3.6.5 Kanban

(看板 看板)

:

Kanban (看板), ), literally meaning "signboard" or "billboard", is a concept related to lean and just-in-time just (JIT) production. According to Taiichi Ohno, the man credited with developing Just-in-time, Just kanban is one means through which JIT is achieved. Kanban is not an inventory control system. Rather, it is a scheduling system s that tells you what to produce, when to produce it, and how much to produce. Representation of Kanban System

The need to maintain a high rate of improvements led Toyota to devise the kanban system. Kanban became an effective effect ive tool to support the running of the production system as a whole. In addition, it proved to be an excellent way for promoting improvements because reducing the number of kanban in circulation on highlighted problem areas. A system that creates product that is then sold after it is produced is called a push system. If there is no mechanism to keep work in work-in-progress progress below some level that is consistent with product demand, production output can become excessive, which can an lead to many problems, including product storage. In pull systems, products are created at a pace that matches customer demand. Kanbans are used to buffer variations in customer or next process step demands. A most familiar form of kanban is the America n-style supermarket where each product has a short-term short term buffer, replenished at the rate of customer demand. The Japanese word kanban refers to the pulling of a product through a production process. The intent of kanban is to signal a preceding process that the next process needs parts or material. A bottleneck is a system constraint. In a pull system, the bottleneck should be used to regulate the pace for the entire production line. Buffers in high-volume high volume manufacturing serve to balance Page 68

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} the line. It’s important that such operations receive the necessary supplies in a timely basis and that poorly sequenced work does not interfere with the process completion. Pull systems address what the external and internal customers need when they want it.  Kanban cards: Kanban cards are a key component of Kanban that utilizes cards to signal the need to move materials within a manufacturing or production facility or move materials from an outside supplier to the production facility. The Kanban card is, in effect, a message that signals depletion of product, parts or inventory that when received will trigger the replenishment of that product, part or inventory. Consumption drives demand for more. Demand for more is signaled by Kanban card. Kanban cards therefore help to create a demand-driven system. It is widely espoused[citation needed] by proponents of Lean production and manufacturing that demand-driven systems lead to faster turnarounds in production and lower inventory levels, helping companies implementing such systems to be more competitive. Kanban cards, in keeping with the principles of Kanban, should simply convey the need for more materials. A red card lying in an empty parts cart would easily convey to whomever it would concern that more parts are needed. In the last few years, Electronic Kanban systems, which send Kanban signals electronically, have become more widespread. While this is leading to a reduction in the use of Kanban cards in aggregate, it is common in modern Lean production facilities to still find widespread usage of Kanban cards. In Oracle ERP, KANBAN is used for signaling demand to vendors through email notifications. When stock of a particular component is depleted by quantity assigned on Kanban card, A "Kanban trigger" is created which may be manual or automatic, a purchase order is released with predefined quantity for the vendor defined on the card, and the vendor is expected to dispatch material within lead time.[citation needed] This system is also available in enterprise resource planning software such as SAP ERP or Microsoft Dynamics AX.  Toyota's six rules: 1) Do not send defective products to the subsequent process 2) The subsequent process comes to withdraw only what is needed Page 69

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 3) Produce only the exact quantity withdrawn by the subsequent process 4) Level the production 5) Kanban is a means to fine tuning 6) Stabilize and rationalize the process  Benefits of Kanban: 1) Reduce inventory and product obsolescence 2) Reduces waste and scrap 3) Provides flexibility in production 4) Increases Output 5) Reduces Total Cost

3.6.6 Takt Time – The Rhythm Of Lean Manufacturing: Takt time is derived from the German word, Taktzeit, and can be literally translated to mean “cycle time”. Traditionally, Takt time is the maximum time per unit that a production line is allowed to produce a quality product in order to meet demand. The Takt time is computed by dividing the time demand (units required per day) by the net time available to work (minutes of work per day). This will give you a unit of minutes of work per unit required, and provides for a good description of what Takt Time really is. The end goal of determining the Takt time is to produce products at a pace that mirrors what the customer’s demand is. By meeting the demand from the customer, the inventory is kept to a minimum and thus costs are also minimized.

3.6.7 Total Productive Maintenance (TPM):  Introduction: Total productive maintenance (TPM) is a method to improve and enhance manufacturing productivity. It is the practical application of data from equipment availability, schedule attainment, and product quality. Through these measurements, the overall equipment efficiency indicates the best use Page 70

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} of resources. TPM is not just a maintenance strategy, but a more comprehensive approach to productivity improvements. To think that TPM is only a maintenance strategy would be to miss the complexity of the concept, and underestimate the potential for improvements. It should also be noted that TPM can be difficult to understand, particularly from an engineering perspective. Though the basic measures are quite familiar to most people, it is the utilization of these measurements that can be confusing. If we were to visualize a brick wall, it would be easy to measure and define the dimensions of the bricks, but more difficult to quantify the mortar that holds them together. Without the mortar, each brick is independent, without connection to the other bricks. This visualization attempts to illustrate the concept of TPM as it relates to standard engineering measures and practices. Just as the mortar in the wall brings the individual bricks together to form a solid mass of strength with definable performance, TPM brings information and functions together in a comprehensive way to better identify actual performance levels, and better quantify improvement opportunities in manufacturing. The practical study of total productive maintenance requires minimal technical expertise. If an individual has a fairly good level of mechanical comprehension, basic TPM concepts should prove only moderate challenges. When a practical application is attempted, managerial and engineering expertise will also be necessary. For most managers and engineers, TPM will be a logical application of already understood concepts.  The World Of TPM: Total productive maintenance is a widely discussed subject. TPM requires patience, understanding, leadership, and a keen eye for details. It can help plant operations to increase productivity and reduce costs. This is achieved through the determination of current manufacturing performance (the baseline), and the opportunities to improve. Through the use of overall equipment efficiency (OEE), the baseline can be compared to competitive performance. For example, if a plant has a performance of 60 percent OEE and the competition has an OEE of 90 percent, there is a 50 percent opportunity for improvement. The most effective TPM installations usually require modified concepts and technical applications to fit a precise need; most plants will thus need a custom installation specifically designed for a single location. In some facilities, a plant will be operating continuously 7 days per week, 24 hours per day. In another facility, operations will need very different improvements in utilization, performance efficiency, and quality. The personnel, operating philosophies, goals and objectives will likewise be very different. To install TPM in these plants, custom-made, and quite dissimilar installations will be required to meet each plant’s specific needs. Page 71

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339}  The Japanese and TPM: In the 1960s the Japanese developed an improved maintenance process, called total productive maintenance, which became quite efficient. The key to their success was the application of inherent concepts within their corporate culture, such as teamwork and long-range planning, which were based on long-term management commitments. Because the culture supported collaboration, the sharing of information, performance levels, and teamwork, TPM was a natural result. Again, equipment maintenance concepts are only a portion of an application of TPM.

TPM — Practical Benefits

 Other TPM Applications: Common production techniques include a just-in-time (JIT) element, which is necessary for operational efficiency, quality, and cost control. However, a breakdown in the middle of a JIT run is detrimental to quality, cost, and customer delivery. Through increased utilization of equipment, better monitoring and coordination of planned downtime—as well as better equipment maintenance—will improve dependability, and such breakdowns can to a large extent be avoided. The application of a properly installed TPM process will enhance ongoing efforts in the following areas (without new equipment): Just-in-time Cycle time reduction Setup reduction Cost control

Skills training Teamwork Capacity expansion

Typical TPM organization

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339}  In lean manufacturing one machine breakdown will not be just another breakdown since it can hold the entire production flow as there is no WIP to consume in the time of the machine breakdown. Therefore it is very important to have a correct maintenance process to become a lean manufacturer. TPM has three main areas. They are (1) Preventive maintenance (2) Corrective maintenance (3) Maintenance prevention o Preventive maintenance is to continuous checking and prevention of major maintenance. Regular checkups are planned and carried over. Each and every person who is working in a work station might be responsible for checking up and cleaning etc in order to prevent any problems from occurring.

o Corrective maintenance These corrective maintenances can vary from very simple to very complex. People who are working with these machinery might be able to fix most of the simpler problems while a team of specially trained people might be required to do the complex jobs. o Maintenance prevention is one of the key aspects which make the path to become lean. This is the process where the decisions are made in order to prevent maintenance. This process might include decisions like buying correct machinery for the job, training people to overcome most common problems etc. Page 73

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339}  Safety: In each location where TPM is installed, equipment becomes the first focus of improvements. When equipment runs better, personnel have fewer problems operating and maintaining it. As a result, the personnel have to enter the operating envelope of the equipment fewer times, and because it is operating better, their risks of injury are reduced. When establishing cleaning procedures for the equipment, one of the first activities in a TPM installation is to identify energy isolation points. Their locations are called out in cleaning procedures, visual identifications are created, and approvals are obtained and documented.

3.6.8 Work – Flow Diagram – An Important Lean Tool: The workflow can be used as a great learning tool, especially for newcomers to the organization, which is an ISO requirement. Additionally, they should be characteristic to the company with its own terminology such as silos, teams, projects, and hierarchies.

In reality, it is often hard to trace the exact path of a task or document, especially when functional tasks and operational teams are not clearly defined. The workflow will often be better represented by a series of intertwined webs instead of clearly defined paths and flowing roadmaps. It is very common for a company to employ the use of software to help in defining and managing the workflows associated with a company. After it is defined and improved, the end result is usually a better overall understanding of the company’s processes as well as improved efficiency, less complicated processes, improved process control and better quality and standardization. If all of the members of a workflow and business understand where their place is in the workflow and how they are supposed to interact with other teams and organizations inside of the workflow, the results are sometimes amazing at the level of improvement that is possible. When a company first decides that it wants to employ lean processes, they Page 74

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} usually start with a workflow diagram. Most managers and company executives are shocked to find out the inefficiencies that occur inside of their organizations. It is also a great way to make a big difference quickly by reminding, or informing all personnel that operate inside the workflow of what they should be doing with respect to processing the documents or materials that they handle.

3.6.9 Value Stream Mapping (VSM): VSM is used to identify the areas in which a large amount of waste exists. This gives the quality team a good idea where to focus their efforts and lean processes. By practicing VSM, a company can also streamline their business processes and achieve record levels of productivity.

More commonly known as “Material and Information Flow Mapping”, VSM seeks to analyze and optimize the flow of materials and information necessary to bring a product or service to a consumer. As you might expect, the simpler, Page 75

{D-08-IN-314, 314, D-08-IN-331, D D-08-IN-337, D-08-IN-338, 338, D-08-IN-339} D more straight-line, line, and clearly defined the processes or value stream is, the more efficiently the company will run. If used correctly, VSM can be used in many different industries and processes, from customer service, to consulting services, and from optimizing manufacturing lines to paperwork p aperwork reduction. No matter what industry, effort, or process, there are a few steps which outline the processes necessary for mapping the different value streams. Many times, VSM is used in conjunction with the first S, “Sort”, in the 5S model. It can also be used when trying to achieve a visual workplace, something else that goes after the same objectives. In fact, the ‘Sort’ phase of 5S talks about finding out what the most efficient stream of information and parts flowing is and how to achieve that b y removing the unnecessary tools and equipment are on the shop floor.

3.6.10 Cause And Effect Diagram: Cause-and-effect effect diagrams or Ishakawa diagram are charts that identify potential causes for particular quality problems. They are often called fishbone

diagrams because they look like the bones of a fish. A general cause-andcause effect diagram is shown in Figure. The “head” of the fish is the quality problem, such as damaged zippers on a garment or broken valves on a tire. The diagram is drawn so that the “spine” of the fish connects the “head” to the possible cause of the problem. Typically, a fishbone analysis plots four major classifications of potential causes (i.e., man, machine, material, and methods), but can include any combination of c ategories related to the machines, workers, measurement, suppliers, materials, and many other aspects of the production process. Each of these possible causes can then have smaller “bones” that address specific issues that relate to each cause. For example,, a problem with machines could be due to a need for adjustment, old equipment, or tooling problems. Similarly, a problem with workers could be related to lack of training, poor supervision, or fatigue. Cause-and-effect effect diagrams are problem-solving solving tools commonly used by quality control teams. Specific causes of problems can be Page 76

{D-08-IN-314, 314, D-08-IN-331, D D-08-IN-337, D-08-IN-338, 338, D-08-IN-339} D explored through brainstorming. The development of a cause-and-effect cause diagram requires the team to think through all the possible causes of poor quality.

Like most of the failure-analysis failure analysis methods, this approach relies on a logical evaluation of actions or changes that lead to a specific event, such as machine failure. The only difference between this approach and other methods is the use of the fish-shaped fish shaped graph to plot the cause-effect cause relationship between specific actions, or changes, and the end result or event.

This approach has one serious limitation. The fishbone graph does not provide a clear sequence of events that leads to failure. Instead, it displays all of the possible causes that may have contributed to the event. While this is useful, it does not isolate the specific factors that caused the event. Other approaches provide the means to isolate specific changes, omissions, or actions that caused the failure, failu re, release, accident, or other event being investigated. Page 77

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Chapter No: 04

Six Sigma; Methods Of Analysis & Infrastructure

4.1 Six Sigma Tools 4.2 Statistical Analysis Tools 4.3 Process Optimization Tools 4.4 Elements of Six Sigma Infrastructure 4.5 Six Sigma Organizational Structure 4.6 Successful Project Selection

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PPM Defective for 3 versus 6Quality (not to scale)

4.1 Six Sigma Tools: The discipline of Total Quality Control uses a number of quantitative methods and tools to identify problems and suggest avenues for continuous improvement in fields such as manufacturing. Over many years, six sigma practitioners gradually realized that a large number of quality related problems can be solved with these six sigma tools.

 Classification Of Six Sigma Tools: Six sigma tools are widely used in many manufacturing industries. These six sigma tools are further classified into two categories:

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} o Statistical Analysis Tools o Process Optimization Tools Process optimization tools allows Six Sigma teams to create better workflows while statistical analysis tools helps teams to analyze data more effectively.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 4.2 Statistical Analysis Tools: Statistical analysis includes the following tools which are discussed below with description and construction to understand them easily: o Check Sheet o Histogram o Pareto Chart o Cause and Effect Diagram (Also Discussed in Chapter No. 03) o Scatter Diagram o Control Charts These tools have been widely used in most Quality Management Organizations, and a number of extensions and improvements to them have been proposed and adopted. The six sigma tools are the most popular tools, which are being used by quality conscious companies throughout the world for improvement of quality of products and processes. A brief description of these tools is presented here:

4.2.1 Check Sheet:  What is a check sheet: A check sheet is a pre-designed format for collection of data that encourages organized collection and groups data into categories. Categories are created in advance and may be added as needed. A check mark is added for each example of a category. The marks are added to determine subtotals.  When to use it: To keep track of the parameters of an on going process. It can be used to track events by such factors as timeliness (on time, one day late, two days late, etc.); reason for inspection failure (appearance, performance, etc.); person accomplishing the task (sales calls per representative); when something happens (customer complaints for each day of the month); and many others.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339}  How to use it: Look at some preliminary data before developing the check sheet. This will indicate what categories to use. For example, you might want to track employee mistakes by hour of the day or simply by whether they occur in morning or afternoon. Include information about who collected the data, the date and the total sample from which it was drawn.

4.2.2 Histogram: A histogram is a display of statistical information that uses rectangles to show the frequency of data items in successive numerical intervals of equal size. In the most common form of histogram, the independent variable is plotted along the horizontal axis and the dependent variable is plotted along the vertical axis. The data appears as colored or shaded rectangles of variable area. The illustration, below, is a histogram showing the results of a final exam given to a hypothetical class of students. Each score range is denoted by a bar of a certain color. If this histogram were compared with those of classes from other years that received the same test from the same professor, conclusions might be drawn about intelligence changes among students over the years. Conclusions might also be drawn concerning the improvement or decline of the professor's teaching ability with the passage of time. If this histogram were compared with those of other classes in the same semester who had received the same final exam but who had taken the course from different professors, one might draw conclusions about the relative competence of the professors. Some histograms are presented with the independent variable along the vertical axis and the dependent variable along the horizontal axis. That format is less common than the one shown here.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 4.2.3 Pareto Chart: The Pareto diagram is a special type of bar chart used to determine which problem to work on first to improve a process. An Italian economist named Vilfredo Pareto developed the Pareto chart in the late 1800s. It is based on what is now called the Pareto principle. Pareto found that 80% of Italy's wealth was held by only 20% of the people. This 80/20 rule is generally true for many things. For example, 80% of our problems are probably due to only 20% of the possible causes. The Pareto diagram allows us to separate the "vital few" from the "trivial many." This permits us to focus our time and resources where they will be most beneficial. The Pareto diagram can also be used to determine how often causes of problems occur. The problem or cause is listed on the x (horizontal axis). The frequency of occurrence or cost associated with each problem or cause is plotted on the y (vertical) axis. The problems or causes on the x-axis are listed in decreasing order. The problem or cause that happens most frequently or costs the most is listed first. This is usually the problem you want to work on first. The problem or cause that happens least frequently or costs the least is listed last.  Example: The Pareto diagram in the figure shows the reasons for consumer complaints against U.S. airlines in 2002. Each bar on the chart represents the frequency with which each complaint was received. It is easy to see that the major complaint was for flight problems (cancellations, delays and other deviations from schedule). The second largest complaint was for customer service (rude or unhelpful employees, inadequate meals or cabin service, treatment of delayed passengers). Page 83

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} The line on the Pareto diagram is called a cumulative line. This line gives the cumulative percentage. Flight problems account for 21% of the complaints. Flight problems and customer service account for 40% of the complaints. The top three complaint categories account for 55% of the complaints. So, if the airlines want to reduce the number of complaints, they need to work on flight delays, customer service, and baggage problems. 4.2.4 Cause and Effect Diagram: Cause-and-effect diagrams are also called: o Ishikawa diagrams (Dr. Kaoru Ishikawa, 1943) o fishbone diagrams Cause-and -effect diagrams do not have a statistical basis, but are excellent aids for problem solving and trouble-shooting Cause-and-effect diagrams can o reveal important relationships among various variables and possible causes o Provide additional insight into process behavior.  Procedure For Constructing a Cause-and-Effect Diagram: To construct a fishbone, start with stating the problem in the form of a question, such as 'Why is the help desk's abandon rate so high? Framing it as a 'why' question will help in brainstorming, as each root cause idea should answer the question. The team should agree on the statement of the problem and then place this question in a box at the 'head' of the fishbone. The rest of the fishbone then consists of one line drawn across the page, attached to the problem statement, and several lines, or 'bones,' coming out vertically from the main line. These branches are labeled with different categories. The categories you use are up to you to decide. There are a few standard choices: You should feel free to modify the categories for your project and subject matter. Service Industries

Manufacturing Industries

Process Steps

(The 4 Ps)

(The 6 Ms)

(For Example)

   

Policies Procedures People Plant/Technology

    

Machines Methods Materials Measurements Mother Nature (Environment)  Manpower (People)

     

Determine Customers Advertise Product Incent Purchase Sell Product Ship Product Provide Upgrade

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} Once you have the branches labeled, begin brainstorming possible causes and attach them to the appropriate branches. For each cause identified, continue to ask 'why does that happen?' and attach that information as another bone of the category branch. This will help get you to the true drivers of a problem. Once you have the fishbone completed, you are well on your way to understanding the root causes of your problem. It would be advisable to have your team prioritize in some manner the key causes identified on the fishbone. If necessary, you may also want to validate these prioritized few causes with a larger audience. 4.2.5 Scatter Diagram: The scatter diagram is another visual display of data. It shows the association between two variables acting continuously on the same item. The scatter diagram illustrates the strength of the correlation between the variables through the slope of a line. This correlation can point to, but does not prove, a causal relationship. Therefore, it is important not to rush to conclusions about the relationship between variables as there may be another variable that modifies the relationship. For example, analyzing a scatter diagram of the relationship between weight and height would lead one to believe that the two variables are related. This relationship, however, does not mean causality; for instance, while growing taller may cause one to weigh more, gaining weight does not necessarily indicate that one is growing taller. The scatter diagram is easy to use, but should be interpreted with caution as the scale may be too small to see the relationship between variables, or confounding factors may be involved.  Scatter diagrams make the relationship between two continuous variables stand out visually on the page in a way that the raw data cannot. Scatter diagrams may be used in examining a cause-and-effect relationship between variable data (continuous measurement data). They can also show relationships between two effects to see if they might stem from a common cause or serve as surrogates for each other. They can also be used to examine the relationship between two causes. Page 85

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339}  Scatter diagrams are easy to construct: Step 1: Collect at least 40 paired data points: "paired" data are measures of both the cause being tested and its supposed effect at one point in time. Step 2: Draw a grid, with the "cause" on the horizontal axis and the "effect" on the vertical axis. Step 3: Determine the lowest and highest value of each variable and mark the axes accordingly. Step 4: Plot the paired points on the diagram. If there are multiple pairs with the same value, draw as many circles around the point as there are additional pairs with those same values. Step 5: Identify and classify the pattern of association using the graphs below of possible shapes and interpretations.  Scatter Diagram Interpretation

 Caution: Stratifying the data in different ways can make patterns appear or disappear. When experimenting with different stratifications and their effects on the scatter diagram, label how the data are stratified so the team can discuss the implications. Interpretation can be limited by the scale used. If the scale is too small and the points are compressed, then a pattern of correlation may appear differently. Determine the scale so that the points cover most of the range of both axes and both axes are about the same length. Be careful of the effects of confounding factors. Sometimes the correlation observed is due to some cause other than the one being studied. If a confounding factor is suspected, then stratify the data by it. If it is truly a confounding factor, then the relationship in the diagram will change significantly. Page 86

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} Avoid the temptation to draw a line roughly through the middle of the points. This can be misleading. A true regression line is determined mathematically. Consult a statistical expert or text prior to using a regression line. Scatter diagrams show relationships, but do not prove that one variable causes the other. 4.2.6 Control Charts: In general, control charts are used to plot production values and variation over time. These charts can then be analyzed to determine if changes in production values or variation are due to the inherent variability of the process or a specific correctable cause. Control charts for variables are fairly straightforward and can be quite useful in material production and construction situations. Four popular control (Montgomery, 1997):

charts

within

the

manufacturing

industry

are

Control Chart For Variables: In variable sampling, measurements are monitored as continuous variables. Because they retain and use actual measurement data, variable sampling plans retain more information per sample than do attribute sampling plans (Freeman and Grogan, 1998). This implies that compared to attribute sampling, it takes fewer samples to get the same information. Because of this, most statistical acceptance plans use variable sampling. Control Chart For Attributes: This chart is used when a number cannot easily represent the quality characteristic. Therefore, each item is classified as "conforming" or "nonconforming" to the particular specification for the quality characteristic being examined. These charts look similar to control charts for variables but are based on a binomial distribution instead of a normal distribution. Two of the most common attribute control charts are for fraction nonconforming and defects. Cumulative Sum Control Chart: A disadvantage of control charts for variables and attributes is that they only use data from the most recent measurement to draw conclusions about the process. This makes it quite Page 87

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} insensitive to shifts on the order of 1.5 standard deviations or less. The cumulative sum control chart is a more sensitive control chart that can use information from an entire set of points to draw conclusions about the process. Basically the cumulative sum (or CUSUM) chart plots the cumulative sum of measurement deviations from an average. Therefore, if an abnormal amount of measurements fall on only one side of the average this sum will grow and indicate an out-of-control condition. Exponentially Weighted Moving Average (EWMA) Control Chart: This chart is similar to the cumulative sum chart but instead of weighting each measurement the same, recent measurements are more influential because measurements are weighted exponentially based on when they were made. Beyond these, control charts begin to get more complex or are hybrids of more than one type. 4.2.6.1 Control Chart For Variables: Control charts for variables monitor characteristics that can be measured and have a continuous scale, such as height, weight, volume, or width. When an item is inspected, the variable being monitored is measured and recorded. For example, if we were producing candles, height might be an important variable. We could take samples of candles and measure their heights. Two of the most commonly used control charts for variables monitor both the central tendency of the data (the mean) and the variability of the data (either the standard deviation or the range). Note that each chart monitors a different type of information. When observed values go outside the control limits, the process is assumed not to be in control. Production is stopped, and employees attempt to identify the cause of the problem and correct it. Next we look at how these charts are developed.  Mean (x-Bar) Charts:

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 Range (R) Charts:

 Using Mean and Range Charts Together: Mean and Range Charts are used to monitor different variables. The mean or x-bar chart measures the central tendency of the process, whereas the range chart measures the dispersion or variance of the process. Since both variables are important, it makes sense to monitor a process using both mean and range charts. It is possible to have a shift in the mean of the product but not a change in the dispersion. Page 89

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4.2.6.2 Control Charts For Attributes: Control charts for attributes are used to measure quality characteristics that are counted rather than measured. Attributes are discrete in nature and entail simple yes-or-no decisions. For example, this could be the number of nonfunctioning light bulbs, the proportion of broken eggs in a carton, the number of rotten apples, the number of scratches on a tile, or the number of complaints issued. Two of the most common types of control charts for attributes are p-charts and ccharts. P-charts are used to measure the proportion of items in a sample that are defective. Examples are the proportion of broken cookies in a batch and the proportion of cars produced with a misaligned fender. Pcharts are appropriate when both the number of defectives measured and the size of the total sample can be counted. A proportion can then be computed and used as the statistic of measurement. C-charts count the actual number of defects. For example, we can count the number of complaints from customers in a month, the number of bacteria on a Petri dish, or barnacles on the bottom of a Page 92

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} boat. However, we cannot compute the proportion of complaints from customers, the proportion of bacteria on a Petri dish, or the proportion of barnacles on the bottom of a boat.  P - Charts:

 C-Charts:

In general, as a process becomes more controlled, the upper and/or lower Page 93

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} control limits can be decreased to reflect this. The general rule-of-thumb is to act when measurements exceed control limits. However, many companies have expanded on this and developed their own rules such as (Montgomery, 1997): o One or more points outside of the control limits o Two of three consecutive points outside the 2-s warning limits but still inside the control limits o Four of five consecutive points beyond the 1-s limits o A run of eight consecutive points on one side of the centerline o Six points in a row steadily increasing or decreasing o Fourteen points in a row alternating up and down o An unusual or non-random pattern in the data o One or more points near a warning or control limit

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 4.3 Process Optimization Tools: Process optimization is the discipline of adjusting a process so as to optimize some specified set of parameters without violating some constraint. The most common goals are minimizing cost, maximizing throughput, and/or efficiency. This is one of the major quantitative tools in industrial decision making. The goal of process optimization is to continuously improve the efficiency of existing business, production and development processes. There are some process optimization tools are discussed below: 4.3.1 SIPOC: The Six Sigma methodology follows several different process variables; SIPOC is just one of the variables used by Six Sigma. SIPOC is a high-level picture of the process and provides a visual image of how the process is servicing the customer The SIPOC stands for: o

S - Suppliers that provide input in your process.

o

I - Input to define the material, service or information that is used by the process to product the outputs.

o

P - Process that your team is improving; typically it is a defined sequence of activities that will add value to inputs to produce outputs for the customer.

o

O - Outputs are considered the products, services, and information which are valuable to the customer.

o

C - Customers that use the outputs that are produced by the entire process.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 4.3.2 Correlation Tests: Correlation of two variables is a measure of the degree to which they vary together. More accurately, correlation is the co variation of standardized variables. In positive correlation, as one variable increases, so also does the other. In negative correlation, as one variable increases, the other variable decreases. Correlation can be visually displayed in a Scatter Diagram. Correlation is a descriptive statistic, as it simply describes data, telling you something about it. This is in contrast to inferential statistics. A correlation coefficient is a calculated number that indicates the degree of correlation between two variables: o Perfect positive correlation usually is calculated as a value of 1 (or 100%). o Perfect negative correlation usually is calculated as a value of -1. o A value of zero shows no correlation at all.

Person’s Correlation

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4.3.3 Design Of Experiments (DOE):

4.3.4 Failure Mode and Effects Analysis:

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4.3.5 Quality Function Deployment (QFD):

The QFD process answers the following questions:       

What do customers wants? Are all the wants equally important? Will delivering perceived needs yield a competitive advantage? How can we change the product, service, or process? How does an engineering decision affect customer perception? How does an engineering change affect other technical descriptors? What is the relationship to parts deployment, process planning, and production planning?

QFD reduces start-up costs. Reduces engineering design changes, and most important, leads to increased customer satisfaction.

4.3.6 Benchmarking:

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Figure: Role of BENCHMARKING in Implementing Best Practices

 Basic Terms: Failure Mode: "The manner by which a failure is observed; it generally describes the way the failure occurs". Failure Effect: Immediate consequences of a failure on operation, function or functionality, or status of some item. Indenture Levels: An identifier for item complexity. Complexity increases as levels are closer to one. Local Effect: The Failure effect as it applies to the item under analysis. Next higher level effect: The Failure effect as it applies at the next higher indenture level. End Effect: The failure effect at the highest indenture level or total system. Failure Cause: Defects in design, process, quality, or part application, which are the underlying cause of the failure or which initiate a process which leads to failure. Page 99

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Severity: "The consequences of a failure mode. Severity considers the worst potential consequence of a failure, determined by the degree of injury, property damage, or system damage that could ultimately occur."

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 4.4 Elements of Six Sigma Infrastructure: Any major change initiative requires a clearly defined supporting infrastructure to drive the program. Infrastructure is defined as the underlying foundation and basic framework of personnel and supporting systems needed to support Six Sigma deployment activities. Because every part of a company participates in Six Sigma activities, the infrastructure must be clear, consistent, and comprehensive.

An effective infrastructure facilitates the development of the core competency that will establish and link Six Sigma project teams to (1) projects, (2) financial targets, and (3) the strategic plan. These project teams will be multifunctional and will need multi-functional support to execute the projects. If Six Sigma has any chance of being successful, the infrastructure will span from the CEO and his leadership team to business leaders and to people executing the projects. Remember we learned earlier that one of Kotter's eight stages of leader change is "Create a Guiding Coalition." Thus, there is the goal of the Six Sigma infrastructure. The infrastructure creates a strong network among the Executive Team, the Six Sigma Champions, the Belts, and the functions and businesses. This makes sense because the CEO's leadership team holds the accountability for executing the corporate strategic plan, and Six Sigma projects are instrumental in moving along the strategic plan. One learning challenge of a Six Sigma deployment involves training the Six Sigma project teams. The human resources on these teams must learn how Page 101

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} to work as a Six Sigma team. A new roadmap and a new set of tools, plus a more distinct focus on project accountability, add to the changes confronted by an organization when creating a Six Sigma environment. Equally more important and complex is the learning challenge of the senior executives. Teaching the leadership team to learn how to lead a team-based organization is essential to strategic and long-term success. Because executing the strategy is a clear responsibility to which the senior executives are accountable, it follows that becoming a dynamic team leader within the Six Sigma deployment will support the strategic efforts. Executing a good strategic plan entails the coordination of multifunctional internal activities. Senior executives must learn to deal with a multifunctional arena rather than the traditional functions. Hundreds of Six Sigma teams launched simultaneously is the outcome of an exemplary deployment of Six Sigma. Each of these teams need at minimum: 1. Clear purpose for the Six Sigma team structure. 2. Clear Six Sigma program expectations. 3. Six Sigma project charters. 4. Six Sigma infrastructure tracking the number of teams. 5. Centralized repository for project results. 6. Six Sigma team goals. 7. Six Sigma team reporting mechanism. 8. Rewards and recognition alignment. 9. Six Sigma training and development plan. 10. Six Sigma team performance measures. 11. Deployment management of Six Sigma teams. To accomplish all of the preceding requirements demands an extensive infrastructure with supporting systems. Preexisting resources are largely used to staff this infrastructure. Deploying a Six Sigma program, however, does not assume a requirement to add outside resources in a lot of new positions. The additional costs will usually have to do with the external consulting group you hire. For example, the only resource that Larry Bossidy added when he launched Six Sigma into Allied Signal was a corporate program leader. Larry brought in Richard Schroeder from ABB to drive the program. All the other resources for AlliedSignal's Six Sigma program already existed within the company. A small number of additional resources were added by the businesses as needed. Because accountability represents the hallmark of successful Six Sigma deployments, defining the Six Sigma infrastructure and staffing and training the infrastructure players should happen very early in the Six Sigma deployment. Training is essential since, as Larry Bossidy has advised in his Page 102

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} book, Confronting Reality, you must "Learn the guts of the initiative." He also adds that key members of the leadership team should learn the guts of the initiative. Early leadership training becomes a natural part of Six Sigma deployments to allow the program leaders to learn the guts of Six Sigma before the program gets too far along. Defining the Six Sigma infrastructure is a little tricky. There should be a small centralized unit to ensure consistency and cost effectiveness of Six Sigma activities across the businesses and functions. There should also be a decentralized process that allows each business and function to tailor the Six Sigma deployment to its special needs. There is a big difference in deploying Six Sigma into the Human Resources function when compared to deploying into product development and R&D. So, our recommended infrastructure has both centralized and decentralized elements in it.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 4.5 Six Sigma Organizational Structure: Management strategies, such as TQC, TQM, and Six Sigma, are distinguished from each other by their underlying rationale and framework. As far as the corporate framework of Six Sigma is concerned, it embodies the five elements of top-level management commitment, training schemes, project team activities, measurement system and stakeholder involvement. Stakeholders include employees, owners, suppliers and customers. At the core of the framework is a formalized improvement strategy with the following five steps: define, measure, analyse, improve and control (DMAIC). The improvement strategy is based on training schemes, project team activities and measurement system. Top-level management commitment and stakeholder involvement are all inclusive in the framework. Without these two, the improvement strategy functions poorly. All five elements support the improvement strategy and improvement project teams. Most big companies operate in three parts: R&D, manufacturing, and nonmanufacturing service. Six Sigma can be introduced into each of these three parts separately. In fact, the color of Six Sigma could be different for each part. Six Sigma in the R&D part is often called “Design for Six Sigma (DFSS),” “Manufacturing Six Sigma” in manufacturing, and “Transactional Six Sigma (TSS)” in the non-manufacturing service sector. All five elements are necessary for each of the three different Six Sigma functions. However, the improvement methodology, DMAIC, could be modified in DFSS and TSS. These points will be explained in detail in Section Top-level Management Commitment and Stakeholder Involvement. 4.5.1 Top-Level Management Commitment: Launching Six Sigma in a company is a strategic management decision that needs to be initiated by top-level management. All the elements of the framework, as well as the formalized improvement strategy, need top-level management commitment for successful execution. Especially, without a strong commitment on the part of top-level management, the training program and project team activities are seldom successful. Although not directly active in the day-to-day improvement projects, the role of top-level management as leaders, project sponsors and advocates is crucial. Pragmatic management is required, not just lip service, as the top-level management commits itself and the company to drive the initiative for several years and into every corner of the company. There are numerous pragmatic ways for the CEO (chief executive officer) to manifest his commitment. First, in setting the vision and long-term or shortterm goal for Six Sigma, the CEO should play a direct role. Second, the CEO should allocate appropriate resources in order to implement such Six Sigma programs as training schemes, project team activities and measurement Page 104

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} system. Third, the CEO should regularly check the progress of the Six Sigma program to determine whether there are any problems which might hinder its success. He should listen to Six Sigma reports and make comments on the progress of Six Sigma. Fourth, he should hold a Six Sigma presentation seminar regularly, say twice a year, in which the results of the project team are presented and good results rewarded financially. Finally, he should hold a Champion Day regularly, say once in every other month, in which Champions (upper managers) are educated by specially invited speakers and he should discuss the progress of Six Sigma with the Champions. It is also the responsibility of top-level management to set “stretch goals” for the Six Sigma initiative. Stretch goals are tough and demanding, but are usually achievable. Some companies set the stretch goal for process performance at 6 sigma or 3.4 DPMO for all critical-to-customer characteristics. However, the goals can also be set incrementally, by stating instead the annual improvement rate in process performance. The industry standard is to reduce DPMO by 50% annually. 4.5.2 Stakeholder Involvement: Stakeholder involvement means that the hearts and minds of employees, suppliers, customers, owners and even society should be involved in the improvement methodology of Six Sigma for a company. In order to meet the goal set for improvements in process performance and to complete the improvement projects of a Six Sigma initiative, top-level management commitment is simply not enough. The company needs active support and direct involvement from stakeholders. Employees in a company constitute the most important group of stakeholders. They carry out the majority of improvement projects and must be actively involved. The Six Sigma management is built to ensure this involvement through various practices, such as training courses, project team activities and evaluation of process performance. Suppliers also need to be involved in a Six Sigma initiative. A Six Sigma company usually encourages its key suppliers to have their own Six Sigma programs. To support suppliers, it is common for Six Sigma companies to have suppliers sharing their performance data for the products purchased and to offer them participation at in-house training courses in Six Sigma. It is also common for Six Sigma companies to help small suppliers financially in pursuing Six Sigma programs by inviting them to share their experiences together in report sessions of project team activities. The reason for this type of involvement is to have the variation in the suppliers’ products transferred to the company’s processes so that most of the process improvement projects carried out on suppliers’ processes would result in improvement of the performance. Page 105

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} Customers play key roles in a Six Sigma initiative. Customer satisfaction is one of the major objectives for a Six Sigma company. Customers should be involved in specific activities such as identifying the critical-to-customer (CTC) characteristics of the products and processes. CTC is a subset of CTQ from the viewpoint of the customers. Having identified the CTC requirements, the customers are also asked to specify the desired value of the characteristic, i.e., the target value and the definition of a defect for the characteristic, or the specification limits. This vital information is utilized in Six Sigma as a basis for measuring the performance of processes. In particular, the R&D part of a company should know the CTC requirements and should listen to the voice of customers (VOC) in order to reflect the VOC in developing new products. 4.5.3 The Six Sigma Organisational Structure: Six Sigma programs have their own organizational structure aside from the company’s. Each level of the organizational hierarchy has its own role and responsibilities. The foundation of this organization is the Green Belt. Green Belt: An introductory participant and the foundation of the process. Green belts understand concepts of problem solving, data collection, data interpretation, variation, process capability, and cost analysis. Green Belts are expected to assist Black Belts on larger initiatives and lead smaller scale projects. The Six Sigma Green Belt operates in support of or under the supervision of a Six Sigma Black Belt, analyzes and solves quality problems and is involved in quality improvement projects. A Green Belt is someone with at least three years of work experience who wants to demonstrate his or her knowledge of Six Sigma tools and processes. Black Belt: Thoroughly trained individuals with expertise in using statistical tools and interpreting analytical results. Black Belts are expected to identify opportunities, lead initiatives, and coach Green Belts. Black Belts operate under Master Black Belts to apply Six Sigma methodology to specific projects. They devote 100% of their time to Six Sigma. They primarily focus on Six Sigma project execution, whereas Champions and Master Black Belts focus on identifying projects/functions for Six Sigma. Master Black Belt: Master Black Belts are Six Sigma Quality experts that are responsible for the strategic implementations within an organization. Master Black Belt main responsibilities include training and mentoring of Black Belts and Green Belts, helping to prioritize, select and charter high-impact projects. Page 106

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} Also Serve as part of a team that develops Lean Six Sigma consulting methods and ensures the appropriate methodology design and deployment of Lean events, including Six Sigma DMAIC projects. The Master Black Belts is generally a hard working and motivated individual. They are responsible for the training needs of Black Belts and other Six Sigma professionals. The ease with which they handle a situation proves their ability to take on more responsibilities. They are permanent change agents. Master Black Belts apply the Six Sigma methodology to achieve tangible results. They are able to identify the opportunities for Six Sigma project deployment. The Master Black Belt is a certified Black Belt. However, they have higher levels of skill with respect to advanced statistical analysis tools, communication skills, project management and coaching. Six Sigma project success is not dependent on the training and ability of employees; rather, it very much depends on the abilities of the Champions and Master Black Belt with a passion for improvement of the business using Six Sigma tools. Champion: The simplest way to explain the responsibility of the Champion is that of removal of roadblocks, which the Black Belts cannot handle alone. They are generally members of middle management and are responsible for the initiation of projects. They are responsible for mediating any issues between the Black Belts and top management. This allows the Black Belts to concentrate on their problem areas. The Champions propose as well as assess potential projects. Being in the middle management level, they are generally familiar with business opportunities and the need for improvement. They select projects which are crucial for the success of the business. Additionally, they also see to it that project selection is in alignment with company objectives. They have to ensure that top management is aware of the relevance of the project. Champions help the Black Belts to concentrate on project problems and the development of new ideas, rather than Black Belts having to deal with top management in conflicting issues. At the same time, they do not interfere in the Black Belt’s operations, but provide appropriate support in the areas for potential improvement. Page 107

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In the deployment of the program, financial factors also exist. The Six Sigma Champion has to ensure that the project implementation happens primarily for improvement. It may take some time to show the financial results, and thus may be criticized by top management, whose aim is financial results. Champions are ultimately accountable for the success of the project. Black Belts are not able to carry out the deployment and successful implementation alone. Provide support, resources and remove road-blocks. Champions have more in-depth understanding of the methods – measurements and interpretation of process measurements. Steering Committee: Identifies projects / black belts; allocates resources; monitors progress; manages project portfolio; establishes implementation strategy and policies. It usually find where in the organisation, the opportunity exists. It identify the opportunities and then help black belts and other six sigma team members by providing all resources. It time by time, monitor all the activities and check whether the six sigma project is going smooth or not. If yes, then try to minimize that thread to eliminate maximization limit.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 4.6 Three Steps to Successful Six Sigma Project Selections: Project selection is one of the most critical and challenging activities faced by Six Sigma companies. Most organizations are able to identify a host of project opportunities, but the difficulty arises in sizing and packaging those opportunities to create meaningful projects. To be successful, the project selection process must be well defined and disciplined. One process that has proven successful incorporates a three-step approach. 4.6.1 Step 1 – Establish a Project Selection Steering Committee: A Project Selection Steering Committee should include managers who have been trained as Six Sigma Champions, as well as other key Six Sigma knowledge resources, such as the deployment Champion and Master Black Belts or Black Belts, who bring experience in determining the feasibility and manageability of projects under consideration. 4.6.2 Step 2 – Generate Project Ideas: The frustrations, issues, problems and opportunities visible inside the company are key sources of potential projects. These ideas should be examined during a project selection workshop. Two weeks before the workshop, the project Champions each compile a list of project opportunities from their areas, keeping in mind that Six Sigma projects should align with the organizational strategy and be linked to core business issues. Using predefined guidelines, the opportunities are accompanied by supporting project rationale data including defect type, historical volumes and financial impact. The project Champions meet with their team members to identify which process improvements are beneficial to the business, customers and employees. To help generate viable project ideas, the project Champions should ask the following questions: 4.6.2.1 Defect Reduction:      

Is any scrap produced by the process? Is anything falling outside of the desired specifications? Where are high volumes of defects and/or rework occurring? Does the process have a high degree of variation? Where do inputs need controls in order to produce a consistent output? Can scientific adjustments to the process create robust changes?

4.6.2.2 Cycle Time Reduction:  Are there any processes that rely on multiple hand-offs between individuals?  Is the process producing less than expected? Page 109

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339}  Is the process requiring a lot of overtime?  Is the process bogged down with computer/machine downtime? 4.6.2.3 Resource Consumption Reduction:  Does the process experience high variation consumption?  Is the process requiring more labor to do the job?

in

the

material

Once identified, project information is summarized in a standardized quad chart format used to present to the steering committee.

4.6.3 Step 3 – Assess and Prioritize Projects Using a Project Selection Matrix: During the formal project selection workshop, all identified projects are reviewed together to determine integration opportunities and review expected benefits. Existing projects also are included in this review and all projects are then ranked to determine prioritization using a project selection matrix. Whether or not the project is a candidate for the DMAIC methodology is a key question to answer during the workshop. Lean, value stream mapping or Design for Six Sigma may provide a more suitable methodology for some of the projects. At the end of this process, Black Belt resources are assigned to projects based on the prioritization list. This project selection process provides a straightforward way to gather the appropriate data from all areas of the business, segregate by improvement categories and apply a rating for prioritization. The goal of any project Page 110

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} selection process is to create a clear path to implementing process improvements that benefit the business as a whole. Table : Project Selection Matrix Project Number 1 2 Project Description/Potential Project Title (X) Project Owner/Champion

Project Characteristic (Y) 1. Is it likely that the project can be completed within six months? 2. Does the project represent a significant improvement in quality? 3. Does the project justify the deployment of a Six Sigma team? 4. Can the project support a minimum 2:1 ROI regardless of capital investment? 5. Does it appear a minimum of investment will be required to solve the problem? 6. Is the problem easily defined (the function, Y, the defect, Xs)? 7. Will success significantly improve customer satisfaction? 8. Is the process currently measured? 9. Is the process measurable? 10. Is it likely that the solution will be highly leverage-able? 11. Is the scope of the proposed project appropriate? 12. Does it appear that Six Sigma DMAIC is the right problem-solving approach? 13. Is success likely?

Totals

Project A Gary Brosi

Priority 1-10

Project B Kim Glover

3

4

Project C

Project D

X Correlation with Y (1 = weak, 3 = moderate, 9 = strong)

7

3

3

-

-

10

3

3

-

-

8

9

3

-

-

8

9

3

-

-

8

3

3

-

-

9

3

3

-

-

3

3

9

-

-

3

9

3

-

-

6

3

9

-

-

4

6

3

-

-

8

3

3

-

-

7

9

3

-

-

8

9

3

-

-

483

321

0

0

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Chapter No: 05

Six Sigma Implementation

5 Over view of Six Sigma Implement . . . 5.1 5 Role of Six Sigma Implementation 5.2 5 Six Sigma Implementation Categories 5.3 5 DMAIC/DMADV 5.4 5 Why Lean and Six Sigma 5.5 5.6 5Whys, 5Whys, Ford 8Ds (Discipline) 5.7 Statistical Process Control

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 5.1 Over view of Six Sigma Implementation:  How to implement Six Sigma in the company?  What is our first step?  Where do we start? Many executives worry about a false start, failure or the cost of implementation. To successfully implement the 6 Sigma initiatives, one should first understand a company’s performance. Six Sigma initiatives focus on improving profitability, rather than simply improving quality. However, knowing the cost of poor quality is a starting point. Knowing how much money is wasted in company can be surprising to many executives. Most companies do not even have measurements for tracking cost of poor quality (COPQ). The components of COPQ are internal failures (scrap, rework and lost capacity), external failures (field failures, warranty cost, complaints, returned material and lost business), appraisal (inspection, testing and audit) and prevention (quality planning, process control, improvement and training).

How can you determine if your company can benefit from Six Sigma implementation? Let’s look for the following characteristics:  Quality focus and objectives are not clearly defined and communicated.  Executives think quality has nothing to do with business and profitability.  Measurements (levels and trends) to track operations performance, including Reject rate, rolled yield, COPQ, design effectiveness, cycle time, inventory levels, employee skills development and financial performance, are not in place.  Lack of measurements lead to centralized decision-making (executives making the decisions).  Executives are busy fighting fires, making an effort to .look busy. And badgering employees.  Employees are afraid of management-reluctant to take the initiative to improve performance and feel no one is listening to concerns. To overcome such bottlenecks to higher profitability, a company must establish focus business initiative and implement measurements. To benefit from Six Sigma implementation, loss in profitability must be made visible throughout the company. All staff must recognize the value of improving profitability, and have passion to achieve improved results, to become committed to improving business performance. To implement Six Sigma methodology in a selected area, the plan must include, first and foremost, Page 113

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} training of executives in Six Sigma methodology. Company executives must understand the concept, steps, requirements, expectations and management to actively participate and contribute to the success of the project. Employees should never have reason to doubt executives. priority to improve profitability, passion for methodology and staff contribution. Employees must understand the consequences associated with applying or ignoring Six Sigma methodology. The entire company executives and employees must have a common goal, a common objective and a common priority to make the Six Sigma initiative successful. The following steps are needed to implement the Six Sigma initiative:  Perform financial analysis to understand profitability, COPQ and key contributors.  Establish profitability objectives.  Measure contributors to profitability.  Establish business objectives and define values.  Recruit a firm for Six Sigma training and implementation guidance.  Select a pilot project or area for small wins.  Define projects and develop plans to realize improvements.  Conduct executive, champion, Black Belt and Green Belt training.  Solve problems and develop solutions to reduce waste.  Monitor progress of projects and provide support as needed.  Celebrate and publicize successes.  Learn lessons from small wins and optimize approach.  Institutionalize the Six Sigma initiative company-wide.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 5.2 Role of Six Sigma Implementation: One key innovation of Six Sigma involves the "professionalizing" of quality management functions. Prior to Six Sigma, quality management in practice was largely relegated to the production floor and to statisticians in a separate quality department. Six Sigma borrows martial arts ranking terminology to define a hierarchy (and career path) that cuts across all business functions. Six Sigma identifies several key roles for its successful implementation:  Executive Leadership includes the CEO and other members of top management. They are responsible for setting up a vision for Six Sigma implementation. They also empower the other role holders with the freedom and resources to explore new ideas for breakthrough improvements.  Champions take responsibility for Six Sigma implementation across the organization in an integrated manner. The Executive Leadership draws them from upper management. Champions also act as mentor to Black Belts.  Master Black Belts, identified by champions, act as in-house coaches on Six Sigma. They devoted 100% of their time to Six Sigma. They assist champions and guide Black Belts and Green Belts. Apart from statistical tasks, they spend their time on ensuring consistent application of Six Sigma across various functions and departments.  Black Belts operate under Master Black Belts to apply Six Sigma methodology to specific projects. they devote 100% of their time to Six Sigma. They primarily focus on Six Sigma project execution, whereas Champions and Master Black Belts focus on identifying projects/functions for Six Sigma.  Green Belts, the employees who take up Six Sigma implementation along with their other job responsibilities, operate under the guidance of Black Belts.  Yellow Belts, trained in the basic application of Six Sigma management tools, work with the black Belt throughout the project stages and are often the closest to the work.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 5.3 Six Sigma Implementation Categories: 5.3.1 Six Sigma As A Metric: Sigma is the measurement used to assess process performance and the results of improvement efforts - a way to measure quality. Businesses use sigma to mea-sure quality because it is a standard that reflects the degree of control over any process to meet the standard of performance established for that process. Sigma is a universal scale. It is a scale like a yardstick measuring inches, a balance measuring ounces, or a thermometer measuring temperature. Universal scales like temperature, weight, and length allow us to compare very dissimilar objects. The sigma scale allows us to compare very different business processes in terms of the capability of the process to stay within the quality limits established for that process. The Sigma scale measures Defects Per Million Opportunities (DPMO). Six Sigma equates to 3.4 defects per million opportunities. The Sigma metric allows dissimilar processes to be compared in terms of the number of defects generated by the process in one million opportunities.

Figure: Six Sigma Scale

A process that operates at 4.6 Sigma is operating at 99.9% quality level. That means:  4000 wrong prescription each year  2 long or short landings at airports each day  400 lost letters per hour Page 116

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} A process that operates at the 6 Sigma level is operating at 99.9997% quality level. At 6 Sigma, these same processes would produce:  13 wrong drug prescription per year  2 long or short landings at airports each year  1 lost letters per hour Clearly, the value of sigma is its universal application as a measuring stick for organizational and process quality. With sigma as the scale, measures of asis process quality and standards for should-be process targets for quality improvement can be set and understood for any business process. 5.3.2 Six Sigma As Methodology: The Six Sigma methodology builds on the Six Sigma metric. Six Sigma practitioners measure and assess process performance using DPMO and sigma. They apply the rigorous DMAIC (Define, Measure, Analyze, Improve, Control) methodology to analyze processes in order to root out sources of unacceptable variation, and develop alternatives to eliminate or reduce errors and variation. Once improvements are implemented, controls are put in place to ensure sustained results. Using this DMAIC methodology has netted many organizations significant improvements in product and service quality and profitability over the last several years. The Six Sigma methodology is not limited to DMAIC. Other problem-solving techniques and methodologies are often used within the DMAIC framework to expand the tool set available to Six Sigma projects teams. These include:     

Theory of Inventive Problem Solving (TRIZ) Cause Analysis Method Lean 5 Whys Ford 8Ds (Discipline)

Utilizing the sigma metric and marrying this variety of approaches with the DMAIC methodology, the Six Sigma methodology becomes a powerful problem-solving and continuous improvement methodology. Clearly, the use of a consistent set of metrics can greatly aid an organization in understanding and controlling their key processes. So too, the various problem-solving methodologies significantly enhance an organization's ability to drive meaningful improvements and achieve solutions focused on root cause. Unfortunately, the experience of Motorola University consultants has demonstrated that good metrics and disciplined methodology are not sufficient Page 117

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} for organizations that desire breakthrough improvements and results that are sustainable over time. In fact, conversations with organizational leaders who report dissatisfaction with the results of their Six Sigma efforts have shown their Six Sigma teams have sufficient knowledge and skill related to good use of metrics and methodology. However, all too often, these teams have been applying the methodology to low level problems, and have been working with process metrics that don't link to the overall strategy of the organization. It is this recurring theme that has driven Motorola University to develop the concept of Six Sigma as a management system, first introduced in the book "The New Six Sigma".  Theory of Inventive Problem Solving (TRIZ) "TRIZ" is the (Russian) acronym for the "Theory of Inventive Problem Solving." G.S. Altshuller and his colleagues in the former USSR developed the method between 1946 and 1985. TRIZ is an international science of creativity that relies on the study of the patterns of problems and solutions, not on the spontaneous and intuitive creativity of individuals or groups. More than three million patents have been analyzed to discover the patterns that predict breakthrough solutions to problems, and these have been codified within TRIZ. TRIZ is spreading into corporate use across several parallel paths - it is increasingly common in Six Sigma processes, in project management and risk management systems, and in organizational innovation initiatives. o Generalized Solution: TRIZ research began with the hypothesis that there are universal principles of creativity that are the basis for creative innovations, and that advance technology. The idea was that if these principles could be identified and codified, they could be taught to people to make the process of creativity more predictable. The three primary findings of the last 65 years of research are as follows: 1. Problems and solutions are repeated across industries and sciences. By classifying the “contradictions” in each problem, you can predict good creative solutions to that problem. 2. Patterns of technical evolutions tend to be repeated across industries and sciences. 3. Creative innovations often use scientific effects outside the field where they were developed.

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{D-08-IN-314, D-08-IN-331, D D-08-IN-337, D-08-IN-338, 338, D-08-IN-339} D Much of the practice ice of TRIZ consists of learning these repeating patterns of problems-solutions, solutions, patterns of technical evolution and methods of using scientific effects, and then applying the general TRIZ patterns to the specific situation that confronts the developer. Here, you take the specific problem you face, and generalize it to one of the TRIZ general problems. From the TRIZ general problems, you identify the TRIZ solutions to those general problems, and then see how these can be applied to the specific problem you yo face. o EXAMPLE: A powerful demonstration of this method was seen in the pharmaceutical industry. Following the flow of Figure 1, the specific problem was as follows: an important process needed cell walls to be broken down in bacteria cells so that hormones inside the cells could be harvested. A mechanical method for breaking the cell walls had been in use at a moderate scale for some time, but the yield was only 80%, and was variable. Higher yields and a scale able solution were needed. The TRIZ general neral problem at the highest level is to find a way to produce the product with no waste, at 100% yield, with no added complexity. One of the patterns of evolution of technology that TRIZ identifies is that energy (fields) replaces objects (mechanical devices). devi ces). For example, consider using a laser instead of a scalpel for eye surgery. In this case, ultrasound could be used to break the cell walls, or an enzyme could be used to "eat" it (chemical energy). This may seem very general, but it led the pharmaceuti cal researchers to analyze all the resources available in the problem (the cells, the cell walls, the fluid they are in, the motion of the fluid, the processing facility, etc.) and to conclude that three possible solutions had a good potential for solving their problem:  The cell walls could be broken by sound waves (from the pattern of evolution of replacing mechanical means by fields)  The cell walls could be broken by Shearing, as they pass through the processing facility (using the resources of the exist ing system in a different way )  An enzyme in the fluid could “eat” the cell walls and release the contents at the desire time.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} All three methods have been tested successfully. The least expensive, highest yield method was soon put in production. o Eliminating Contradiction: Another of the fundamental concepts behind TRIZ is that at the root of many problems is a fundamental contradiction that causes it (we'll give examples below.) In many cases, a reliable way of solving a problem is to eliminate these contradictions. TRIZ recognizes two categories of contradictions: 1. Technical contradictions are classical engineering "trade-offs." The desired state can't be reached because something else in the system prevents it. In other words, when something gets better, something else automatically gets worse. Classical examples include:  The product gets stronger (good), but the weight increases (bad).  Service is customized to each customer (good), but the service delivery system gets complicated (bad).  Training is comprehensive (good), but keeps employees away from their assignments (bad). 2. Physical contradictions, also called "inherent" contradictions, are situations in which an object or system suffers contradictory, opposite requirements. Everyday examples abound:  Software should be complex (to have many features), but should be simple (to be easy to learn).  Coffee should be hot for enjoyable drinking, but cold to prevent burning the customer.  Training should take a long time (to be thorough), but not take any time.

o Some of The TRIZ Tools: The "General TRIZ Solutions" referred to in Figure 1 have been developed over the course of the 65 years of TRIZ research, and have been organized in many different ways. Some of these are analytic methods such as:  The Ideal Final Result and Ideality.  Functional Modeling, Analysis and Trimming  Locating the Zones of Conflict. (This is more familiar to Six Sigma problem solvers as "Root Cause Analysis.") Some are more prescriptive such as: Page 120

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339}  The 40 Inventive Principles of Problem Solving  The Separation Principles  Laws of Technical Evolution and Technology Forecasting  76 Standard Solutions In the course of solving any one technical problem, one tool or many can be used One of these tools, "The 40 Principles of Problem Solving" is the most accessible "tool" of TRIZ. o THE 40 PRINCIPLES OF PROBLEM SOLVING: These 40 Principles are the ones that were found to repeat across many fields, as solutions to many general contradictions, which are at the heart of many problems. Here are just a few of the Principles and examples of how they could have been used to create products that were once new and innovative:

 Cause Analysis Methods: o Cause Analysis Methods: Is/Is Not Matrix: This is a good technique to pinpoint a problem by exposing when it does and does not occur. The matrix questions help to organize existing knowledge and information about the problem. Using this technique first to identify the problem can help focus additional problem analysis.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} Example: Let us assume that the problem is initially defined as "not enough time to do what needs to be done." In order to define the problem, we have to find out when this problem exists and when it does not exist. It appears that it affects a few people on specific occasions, which means other staff might be available to help out. o Cause Analysis Methods: Cause and Effect Diagram: Cause and Effect Diagram: Identifies and organizes contributing factors: This technique is most effective after the problem has been well defined, although the problem that is initially identified is frequently revised after the contributing branches start to be discussed. It is used to identify and organize possible causes of the problem or factors needed to address it. The diagram provides a pictorial display of a list and shows the relationships between factors. Example: Let us assume that the problem is initially defined as “stress.” In order to define the problem, we have to identify what contributes to the problem. We may decide, based on the contributing branches, that “stress” is too general. Possibly poor communication is a better statement of the problem. Then we can assess which contributing factors are most important, such as unclear expectations and limited feedback.

o Cause Analysis Methods: Top-Down Flow Chart: Top Down Flow Chart: Analyzes contributing factors: This technique provides a picture of the major sequential steps in a process. It enforces logical thinking to identify the major steps necessary to accomplish a

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} goal. The chart can then be analyzed to determine if there are steps that were overlooked that therefore resulted in the problem under investigation. Example: Let us assume that the problem is initially defined as “lack of systems to support desired changes.” In order to define the problem, we need to identify the steps involved in planning and implementing the change. In this situation, it appears that Step #3 may have been overlooked or done poorly.

5.3.3 Six Sigma As A Management System: Six Sigma as a best practice is more than a set of metric-based problem solving and process improvement tools. At the highest level, Six Sigma has been developed into a practical management system for continuous business improvement that focuses management and the organization on four key areas:  Understanding and managing customer requirements  Aligning key processes to achieve those requirements  Utilizing rigorous data analysis to understand and minimize variation in key processes  Driving rapid and sustainable improvement to the business processes As such, the Six Sigma Management System encompasses both the Six Sigma metric and the Six Sigma methodology. It is when Six Sigma is implemented as a management system that organizations see the greatest impact.  General Electric started its quality focus in the 1980s with Work-Out. Today, Six Sigma is providing the way “to meet our customer” needs and relentlessly look for new ways to exceeds their expectations. Page 123

{D-08-IN-314, D-08-IN-331, D D-08-IN-337, D-08-IN-338, 338, D-08-IN-339} D Work-Out Out in the 1980s defined how we behave. Today, Six Sigma is the way we work. Six Sigma is a vision we strive toward and a philosophy that is part of our business culture. It has changed the DNA of GE and has set the stage for making our customers feel Six Sigma.  Honeywell views its Six Sigma initiative (called Six Sigma Plus) as the way to maintain its position with its customer as a premier company. “At Honeywell, Six Sigma refers to our overall strategy to improve growth and productivity as well as measurement of quality. As a strategy, Six Sigma is a way for us to achieve performance breakthroughs.

Fig: Six Sigma as a Metric, Methodology, Management System

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 5.4 DMAIC/DMADV: 5.4.1 DMAIC – Define, Measure, Analyse, Improve, and Measure: DMAIC is the over-riding methodology that unifies a framework for problem solving and continuous improvements that are determined by critical business needs. These business needs are driven by fundamental voices that make a business operate, Voice of Customer, Voice of Business and Voice of Employee.

Figure: DMAIC – Define, Measure, Analyse, Improve, and Control  DEFINE: Define is the phase when a problem or an improvement initiative is identified and scoped. In this phase, the problem statement is developed to describe the pain for the problem that needs solving or the improvement that is required. This is often supported by the extent and consequences and importantly the solution is yet to be known. During this phase the problem is also defined in term of the measurable criteria or metrics and is factors that are critical to customer’s quality requirements are identified. Page 125

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339}  MEASURE: In this phase, a baseline data is established. The ability to measure the critical to customer’s quality and the metrics is also determined. The process in which the problem is occurring or improvement is required would be mapped out in detail and would include time, people and material elements to ensure that the current state is clearly understood. Impact to the Critical to Customer’s quality is also established by identifying the key input variables and key output variables. These measures are essential to establish the capability and stability of the process.  ANALYSE: In this phase, a thorough data analyses is carried out to narrow down, from the trivial many reasons of a problem occurring to the critical few. A relationship between the input factors to the output factors will be established. Additionally, activities such cause and effect study, time and motion analysis, analysis of statistical data will be performed in this stage and the results are expected to assist with the identification of the critical few root causes.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339}  IMPROVE: This phase is the most crucial phase where upon identifying the root-causes, solutions would be generated and tested by piloting it. During this phase team creativity often helps to generate solutions that results maximum gains. Data collected during this phase will be reviewed against the baseline data as a measure of improvement. Risk analysis would also be carried out during this phase to determine the impact of not accepting a solution.  CONTROL: In this phase, the improvements that are identified during Improve would need to be documented and thoroughly captured. A roadmap of solving the problem would need to be established. Implementation plans as well as changed management procedures will be developed to ensure the successful transition of the solution to team that ultimately responsible to the process. WITH THE DMAIC METHODOLOGY, a consistent and standardized way of problem solving can be established throughout the organization. A rigor in which the importance and contribution of each phase will assist in ensuring the problem or improvement are achieved and these in turn would lead toward an improved enterprise performance.

5.4.2 DMADV – Define, Measure, Analyse, Design, and Verify: The DMADV project methodology, also known as DFSS (Design for Six Sigma) is a data-driven quality strategy for designing products and processes, and it is an integral part of a Six Sigma Quality Initiative. features five phases:  Define design goals that are consistent with customer demands and the enterprise strategy.  Measure and identify CTQs (characteristics that are Critical to Quality), product capabilities, production process capability, and risks.  Analyze to develop and design alternatives, create a high-level design and evaluate design capability to select the best design.  Design details, optimize the design, and plan for design verification. This phase may require simulations. Page 127

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339}  Verify the design, set up pilot runs, implement the production process and hand it over to the process owner(s).

5.4.3 DMAIC VS DMADV:  The Similarities of DMAIC and DMADV: Let's first look at the DMAIC and DMADV methodologies and talk about how they're alike. DMAIC and DMADV are both: i. ii. iii. iv. v.

Six Sigma methodologies used to drive defects to less than 3.4 per million opportunities. Data intensive solution approaches. Intuition has no place in Six Sigma -- only cold, hard facts. Implemented by Green Belts, Black Belts and Master Black Belts. Ways to help meet the business/financial bottom-line numbers. Implemented with the support of a champion and process owner.

 The Differences of DMAIC and DMADV: DMAIC and DMADV sound very similar, don't they? The acronyms even share the first three letters. But that's about where the similarities stop. Page 128

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} In DMAIC methodology, the whole system is analysed and then suggest such strategy which may cause improvement in the organisation performance which is target of Six Sigma Methodology. After implementing the such strategy, the need of control the process occurs so that it may produce the products which satisfy our customers. On the other hand, DMADV design a new system for the organisation to meet the target. After completing Define, Measure, Analyse process, design of new system is done by six sigma team instead of improving the same existing system. Another difference is that when the design of new system is accomplished, the organisation test the new system and deeply analyse that whether it give required performance or not. If it gives such performance, the implementation occurs.  When to Use DMAIC: The DMAIC methodology, instead of the DMADV methodology, should be used when a product or process is in existence at your company but is not meeting customer specification or is not performing adequately.  When to use DMADV: The DMADV methodology, instead of the DMAIC methodology, should be used when: i. ii.

A product or process is not in existence at your company and one needs to be developed. The existing product or process exists and has been optimized (using either DMAIC or not) and still doesn't meet the level of customer specification or six sigma level.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 5.5 Why Lean and Six Sigma: 5.5.1 Lean Manufacturing: Lean Manufacturing is a great competitive weapon that reduces your costs, improves quality and improves your bottom line. If you are competing against off shore competition, you need lean manufacturing! Lean production is aimed at the elimination of waste in every area of production including customer relations, product design, supplier networks and factory management. Its goal is to incorporate less human effort, less inventory, less time to develop products, and less space to become highly responsive to customer demand while producing top quality products in the most efficient and economical manner possible. Lean excellence is a coordinated response to today's highly competitive environment. Its roots lie in manufacturing and are strongly influenced by the production system principles originally developed at Toyota. What kind of results should you expect from a lean manufacturing implementation?      

Defects reduced by 20%. Delivery Lead Time reduced by more than 75%. On Time Delivery improved by 99+% Productivity (sales per employee) increases of 15-35% per year. Inventory (working capital) reductions of more than 75%. Return on Assets improvements 100+%

Lean makes use of many tools and techniques. Every operation is different and no two companies put these improvements in place the same way and use the same tools and techniques the same way. Discrete manufacturers, process manufacturing and job shops can all benefit greatly. 5.5.2 Lean Six Sigma And DMAIC Methodology: Speed, customer satisfaction and lower cost through operations excellence are the essential factors for organizations that deliver products and services, with the aim to achieve and sustain superior shareholder returns in businesses. Organizations such as manufacturing, banking, insurance, retail, and government always drive towards prioritizing operational excellence as for these sectors so much of their costs are tied into operations. Analysis from Lean and Six Sigma consultants say that 30-80% of the costs in a service business are pure waste. Eliminating this waste can not only reduce costs, but more importantly allows businesses and services to become faster and much more responsive to its customers, driving revenue growth. Page 130

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 5.5.3 WHY LEAN SIX SIGMA: Lean Six Sigma can be described as a data driven principle and process optimization, adopted by businesses to enhance process or service efficiency, customer satisfaction, eliminating waste and reduction of operational costs. By integrating of the DMAIC methodology, through the proven practices, focused deployment and implementation into the day-to-day running of an operation that ensures flawless execution and rapid results. Lean Six Sigma is a new paradigm that has been introduced to industries to challenge the traditional notion that a gain in excellence for a particular key performance area requires the trade off in excellence of other significant key performance area. An example of a traditional paradigm is shown below.

Figure: Lean Six Sigma Paradigm

The Lean Six Sigma paradigm can be defined as gaining excellence in one key performance area through the requirement and achievement of excellence in all significant key performance areas, as illustrated next page.

The fusion of Lean and Six Sigma is required because:  Lean cannot bring a process under statistical control.  Six Sigma alone cannot dramatically improve process speed or reduce invested capital. Page 131

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 5.6 5Whys, Ford 8Ds (Discipline): 5.6.1 5 WHYS: 5 WHYS is a problem solving technique that allows you to get at the root cause of a problem fairly quickly. It was made popular as part of the Toyota Production System (1970’s.) Application of the strategy involves taking any problem and asking “Why - what caused this problem?” By repeatedly asking the question "Why" (five is a good rule), you can peel away the layers of symptoms that can lead to the root cause of a problem. Very often the first reason for a problem will lead you to another question and then to another. Although this technique is called "5 Whys," you may find that you will need to ask the question fewer or more times than five before you find the issue related to a problem.  Benefits Of 5 Whys  It helps to quickly identify the root causes of a problem.  It helps determine the relationship between the different root causes.  It can be learned quickly and does not acquire statistical analysis to be used.  When 5 Whys Most Useful:  When problem involves human factors or interactions.  In all types of business situations whether solving a lean manufacturing or for any other business problem.  Example of 5 Whys Analysis (Wheel Example):  Why is our largest customer unhappy? Because our deliveries of bicycles have been late for the last month.  Why have our deliveries of bicycles been late for the last month? Because production has been behind the schedule.  Why has production been behind the schedule? Because there is shortage of wheels.  Why are we having shortage of wheels? Because incoming inspection has rejected a large number of wheels for not being round.  Why are we rejecting so many parts? Because purchasing switched to a cheaper wheel supplier that has inconsistent quality.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 5.6.2 FORD 8Ds: Originally developed at Ford Motor Company, Eight D was introduced in 1987 in a manual titled "Team Oriented Problem Solving" (TOPS). This course was written at the request of senior management of the automaker's Power Train organization, which was facing growing frustration at the same problems that were recurring year after year. The focus of this system was to use this approach in a team environment. Teams are to be cross-functional and include members from both the manufacturing organizations as well as design engineering. The Ford 8Ds are most effective in dealing with chronic recurring problems, primarily defects or warranty issues. They were never intended to replace or stand as a systemic quality system. The 8Ds' focus was to deal with problems and discover the weaknesses in the management systems that allowed the problem to occur In the first place. The real benefit would come by changing how management decisions allowed the problem to happen. The problem is merely a symptom of a greater systemic management issue. Global 8D problem solving is made up of a detection cycle and a prevention cycle. It defines a corrective action methodology. Increasingly, these days, companies practicing lean manufacturing are requiring their employees to also understand the 8-Discipline approach (Eight D) to team-based problem solving. These essentially present a standard methodology for data analysis and statistical thinking as follows: 1. D - Use a team approach. 2. D - Describe the problem. 3. D - Implement and verify interim containment actions. 4. D - Define and verify root causes. 5. D - Verify the corrections action(s). 6. D - Implement permanent corrective actions. 7. D - Prevent problem recurrence. 8. D - Congratulate the team. For most manufacturing organizations, routine problem solving will not improve the product and/or process. A more systemic overall quality initiative, such as six sigma or another method is still required.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 5.7 Statistical Process Control: Statistical process control (SPC) is an effective method of monitoring a process through the use of control charts. Control charts enable the use of objective criteria for distinguishing background variation from events of significance based on statistical techniques. Much of its power lies in the ability to monitor both process center and its variation about that center, by collecting data from samples at various points within the process. Variations in the process that may affect the quality of the end product or service can be detected and corrected, thus reducing waste as well as the likelihood that problems will be passed on to the customer. With its emphasis on early detection and prevention of problems, SPC has a distinct advantage over quality methods, such as inspection, that apply resources to detecting and correcting problems in the end product or service. In addition to reducing waste, SPC can lead to a reduction in the time required to produce the product or service from end to end. This is partially due to a diminished likelihood that the final product will have to be reworked, but it may also result from using SPC data to identify bottlenecks, wait times, and other sources of delays within the process. Process cycle time reductions coupled with improvements in yield have made SPC a valuable tool from both a cost reduction and a customer satisfaction standpoint.  HOW TO PERFORM SPC: The key steps for implementing Statistical Process Control are:      

Identify defined processes. Identify measurable attributes of the process. Characterize natural variation of attributes. Track process variation. If the process is in control, continue to track. If the process is not in control: o Identify assignable cause o Remove assignable cause o Return to “Track process variation”

In practice, reports of SPC in software development and maintenance tend to concentrate on a few software processes. Specifically, SPC has been used to control software (formal) inspections, testing, maintenance, and personal process improvement. Control charts are the most common tools for determining whether a software process is under statistical control. A variety of types of control charts are used in SPC. Table 1, based on a survey of SPC usage in organizations attaining Level 4 or higher on the SEI CMM metric of process maturity, shows what types are most commonly used in applying SPC to software. The combination of an Upper Control Limit (UCL) and a Lower Control Limit (LCL) specify, on control charts, the variability due Page 134

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} to natural causes. Table 2 shows the levels commonly used in setting control limits for software SPC. Table 3 shows the most common statistical techniques, other than control charts, used in software SPC. Some of these techniques are used in trial applications of SPC to explore the natural variability of processes. Some are used in techniques for eliminating assignable causes. Analysis of defects is the most common technique for eliminating assignable causes. Causal Analysis-related techniques, such as Pareto analysis, Ishikawa diagrams, the Nominal Group Technique (NGT), and brainstorming, are also frequently used for eliminating assignable causes.

In practice, reports of SPC in software development and maintenance tend to concentrate on a few software processes. Specifically, SPC has been used to control software (formal) inspections, testing, maintenance, and personal process improvement. Control charts are the most common tools for determining whether a software process is under statistical control. A variety of types of control charts are used in SPC. Table 1, based on a survey of SPC usage in organizations attaining Level 4 or higher on the SEI CMM metric of process maturity, shows what types are most commonly used in applying SPC to software. The combination of an Upper Control Limit (UCL) and a Lower Control Limit (LCL) specify, on control charts, the variability due to natural causes. Table 2 shows the levels commonly used in setting control limits for software SPC. Table 3 shows the most common statistical techniques, other than control charts, used in software SPC. Some of these techniques are used in trial applications of SPC to explore the natural variability of processes. Some are used in techniques for eliminating assignable causes. Analysis of defects is the most common technique for Page 135

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} eliminating assignable causes. Causal Analysis-related techniques, such as Pareto analysis, Ishikawa diagrams, the Nominal Group Technique (NGT), and brainstorming, are also frequently used for eliminating assignable causes.

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Chapter No: 06

Six Sigma; Sigma Quality and Cont Improvement

6 Six Sigma and Quality 6.1 6 Quality Standards 6.2 6 Gurus of Quality 6.3 6 Total Quality Management 6.4 6 Continuous Improvement 6.5 6.7 Challenges Of Cont Improvement

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 6.1 Six Sigma and Quality: Quality now a days is known for its aggressive implementation and daily practice in six sigma and lean manufacturing methodologies commonly referred to as Six Sigma Plus. Six Sigma Plus is focused on reducing errors/failures, improving cycle time, and reducing costs. 6.1.1 Quality: The implementation, design, and development of a service or product forms part of a method called quality management. This method (quality management) ensures that all the activities necessary (implementation, design, development) are both efficient and effective with respect to the performance of the system. The focus of any successful organization should thus always be to achieve more consistent quality. The responsibilities, quality policy, and objectives of an organization are determined and implemented by quality management. Four main components are concerned with quality management. The Components of quality management are: 6.1.2 Components of Quality:  Quality Assurance  Advanced Product Quality Planning  Quality Improvement  Total Quality Control  Quality Assurance: Quality assurance, refers to a program for the systematic monitoring and evaluation of the various aspects of a project, service, or facility to ensure that standards of quality are being met.

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It is important to realize also that quality is determined by the program sponsor. Quality assurance cannot absolutely guarantee the production of quality products, unfortunately, but makes this more likely. Two key principles characterize Quality assurance: "fit for purpose" (the product should be suitable for the intended purpose) and "right first time" (mistakes should be eliminated). It includes regulation of the quality of raw materials, assemblies, products and components; services related to production; and management, production and inspection processes. It is important to realize also that quality is determined by the intended users, clients or customers, not by society in general: it is not the same as 'expensive' or 'high quality'. Even goods with low prices can be considered quality items if they meet a market need.  Quality Improvement: There are many methods for quality improvement. These cover product improvement, process improvement and people based improvement. In the following list are methods of quality management and techniques that incorporate and drive quality improvement. o ISO 9004:2000 — Guidelines for Performance Improvement. o QFD — quality function deployment, also known as the house of quality approach. o Kaizen — 改善, Japanese for change for the better; the common English term is continuous improvement. o Zero Defect Program — created by NEC Corporation of Japan, based upon statistical process control and one of the inputs for the inventors of Six Sigma. Page 139

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} o Six Sigma — 6σ, Six Sigma combines established methods such as statistical process control, design of experiments and FMEA in an overall framework. o PDCA — plan, do, check, act cycle for quality control purposes. (Six Sigma's DMAIC method (define, measure, analyze, improve, control) may be viewed as a particular implementation of this.) o Quality circle — a group (people oriented) approach to improvement. o Taguchi methods — statistical oriented methods including quality robustness, quality loss function, and target specifications. o The Toyota Production System — reworked in the west into lean manufacturing. o TQM — total quality management is a management strategy aimed at embedding awareness of quality in all organizational processes. First promoted in Japan with the Deming prize which was adopted and adapted in USA as the Malcolm Baldrige National Quality Award and in Europe as the European Foundation for Quality Management award (each with their own variations). o TRIZ — meaning "theory of inventive problem solving"

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 6.2 Quality Standards: The International Organization for Standardization (ISO) created the first Quality Management System (QMS) standards in 1987. The standards are reviewed every few years by the International Organization for Standardization. The version in 1994 was called the ISO 9000:1994 series; comprising of the ISO 9001:1994, 9002:1994 and 9003:1994 versions. The last major revision was in the year 2000 and the series was called ISO 9000:2000 series. ISO released a minor revision, ISO 9001:2008 on 14 October 2008. It contains no new requirements. Many of the changes were to improve consistency in grammar, facilitating translation of the standard into other languages for use by over 950,000 certified organisations in the 175 countries (as at Dec 2007) that use the standard. ISO 9000 Essentials: The ISO 9000 family of standards represents an international consensus on good quality management practices. It consists of standards and guidelines relating to quality management systems and related supporting standards. ISO 9001:2008 is the standard that provides a set of standardized requirements for a quality management system, regardless of what the user organization does, its size, or whether it is in the private, or public sector. It is the only standard in the family against which organizations can be certified – although certification is not a compulsory requirement of the standard. The other standards in the family cover specific aspects such as fundamentals and vocabulary, performance improvements, documentation, training, and financial and economic aspects. There are many organisations that establish and implement standards:  American Petroleum Institute (API)  American Society for Testing and Materials (ASTM)  British Standards Institution (BSI)  European Computer Manufacturers Association (ECMA), List of ECMA standards  International Electro technical Commission (IEC), List of IEC standards  International Organization for Standardization (ISO), List of ISO standards  International System of Units (SI Units)  International Telecommunication Union (ITU) and  Organization for the Advancement of Structured Information Standards (OASIS)  Universal Postal Union (UPU), Catalogue of UPU Standards

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 6.3 Gurus of Quality: There are so many Quality Gurus as shown below: A. Blanton Godfrey Armand Feigenbaum Bill Smith C.K. Prahalad Clarence Irving Lewis David Garvin Dennis R. Arter Dorian Shainin Edward de Bono Eliyahu M. Goldratt Ellen Domb Eugene L Grant Frank M. Gryna Genichi Taguchi

Genrich S. Altshuller George D Edwards Gopal K Kanji H. James Harrington Harold F. Dodge Harry G. Romig Harry S. Hertz Jack Welch James P. Womack Jeffrey K. Liker John S. Oakland Joseph Juran Kaoru Ishikawa Keki R Bhote

Masaaki Imai Mihaly Csikszentmihalyi Mikel J Harry Mohamed Zairi Myron Tribus Noriaki Kano Norman Bodek P C Mahalanobis Philip Crosby Robert C. Camp Robert S. Kaplan Roderick A. Munro Ronald Aylmer Fisher Ryuji Fukuda

Shigeo Shingo Shin Taguchi Subir Chowdhury Taiichi Ohno Thomas Pyzdek Tom Peters W. Edwards Deming

6.3.1 The Original Quality Gurus:  What is a quality guru? A guru, by definition, is a good person, a wise person and a teacher. A quality guru should be all of these, plus have a concept and approach to quality within business that has made a major and lasting impact. The gurus mentioned in this section have done, and continue to do, that, in some cases, even after their death. Page 142

{D-08-IN-314, 314, D-08-IN-331, D D-08-IN-337, D-08-IN-338, 338, D-08-IN-339} D  The gurus: There have been three groups of gurus since the 1940’s: Early 1950’s Americans who took the messages of quality to Japan Late 1950’s Japanese who developed new concepts in response to the Americans 1970’s-1980’s Western gurus who followed the Japanese industrial success

It is beyond the scope of this site to go into great detail on each of the gurus, their philosophies, teachings and tools; however, ho wever, a brief overview of so me quality gurus and their contribution to the quality journey is given in the table below:

Summary of the Main Contribution of Quality Gurus

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 6.4 Total Quality Management: It is a management philosophy that seeks to integrate all organizational functions (marketing, finance, design, engineering, and production, customer service, etc.) to focus on meeting customer needs and organizational objectives. TQM empowers the Total organization, from the employee to the CEO, with the responsibility of ensuring Quality in their respective products and services, and Management of their processes through the appropriate process improvement channels. All types of organizations have deployed TQM, from small businesses to government agencies like NASA , from schools to construction firms, from manufacturing centers to call centers, and from dance sequence to hospitals. TQM is not specific to one type of enterprise, it is a philosophy applied anywhere quality is required. 6.4.1 Comparison To Six Sigma: Six Sigma is a relatively new concept as compared to Total Quality Management (TQM). However, when it was conceptualized, it was not intended to be a replacement for TQM. Both Six Sigma and TQM have many similarities and are compatible in varied business environments, including manufacturing and service industries. While TQM has helped many companies in improving the quality of manufactured goods or services rendered, Six Sigma has the potential of delivering even sharper results. Table: TQM v/s Six Sigma

In comparison, Six Sigma is more than just a process improvement program Page 144

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} as it is based on concepts that focus on continuous quality improvements for achieving near perfection by restricting the number of possible defects to less than 3.4 defects per million. It is complementary to Statistical Process Control (SPC), which uses statistical methods for monitoring and controlling business processes. Although both SPC and TQM help in improving quality, they often reach a stage after which no further quality improvements can be made. Six Sigma, on the other hand, is different as it focuses on taking quality improvement processes to the next level. The basic difference between Six Sigma and TQM is the approach. While TQM views quality as conformance to internal requirements, Six Sigma focuses on improving quality by reducing the number of defects. The end result may be the same in both the concepts (i.e. producing better quality products). Six Sigma helps organizations in reducing operational costs by focusing on defect reduction, cycle time reduction, and cost savings. It is different from conventional cost cutting measures that may reduce value and quality. It focuses on identifying and eliminating costs that provide no value to customers such as costs incurred due to waste. TQM initiatives focus on improving individual operations within unrelated business processes whereas Six Sigma programs focus on improving all the operations within a single business process. Six Sigma projects require the skills of professionals that are certified as ‘black belts’ whereas TQM initiatives are usually a part-time activity that can be managed by non-dedicated managers. 6.4.2 Applications Where Six Sigma Is Better: Six Sigma initiatives are based on a preplanned project charter that outlines the scale of a project, financial targets, anticipated benefits and milestones. In comparison, organizations that have implemented TQM, work without fully knowing what the financial gains might be. Six Sigma is based on DMAIC (Define-Measure-Analyze-Improve-Control) that helps in making precise measurements, identifying exact problems, and providing solutions that can be measured. 6.4.3 Conclusion: Six sigma is also different from TQM in that it is fact based and data driven, result oriented, providing quantifiable and measurable bottom-line results, linked to strategy and related to customer requirements. It is applicable to all common business processes such as administration, sales, marketing and R & D. Although many tools and techniques used in Six Sigma may appear similar to TQM, they are often distinct as in Six Sigma, the focus is on the strategic and systematic application of the tools on targeted projects at the appropriate time. It is predicted that Six Sigma will outlast TQM as it has the potential of achieving more than TQM.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 6.5 Continuous Improvement: Continuous -- Marked by uninterrupted extension in space, time, or sequence Improvement -- The act or process of Improving A: The state of being improved; especially: enhanced value or excellence. B: An instance of such improvement: something that enhances value and excellence.

 Definition:

Continuous improvement, in regard to organizational quality and performance, focuses on improving customer satisfaction through continuous and incremental improvements to processes, including by removing unnecessary activities and variations.

6.5.1 A Ten Step Method To Continuous Improvement: There are ten steps to undertaking continual improvement: 1) Determine current performance. 2) Establish a need to improve. 3) Obtain commitment and define the improvement objective. 4) Organize the diagnostic resources. 5) Carry out research and analysis to discover the cause of current performance. 6) Define and test solutions that will accomplish the improvement objective. 7) Produce improvement plans which specify how and by whom the changes will be implemented. 8) Identify and overcome any resistance to the change. 9) Implement the change. 10) Put in place controls to hold new levels of performance, and repeat step one. Page 146

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 6.5.2 What tools should be used? The portfolio of tools used for continual improvement should be those which enable an organization to execute the ten steps above. These can include: o Ishikawa fishbone diagram to examine cause and effect o Failure mode and effects analysis to predict failure and prevent its occurrence o Pareto analysis to identify the few influences on a situation which have the biggest impact o Force field diagram to display the forces for and against change o Charting techniques to demonstrate whether improvement is being achieved  Various perspectives of Continuous Improvement: Total Quality Management PDCA Deming Cycle

Six Sigma Kaizen Lean

 Ranking of Continuous improvement methods: While deciding which continuous improvement programs are appropriate, here's some food for thought: According to the Industry Week/Manufacturing Performance Institute 2006 Census of Manufacturers, out of 745 respondents, lean manufacturing was the most common method implemented by manufacturers. Other methods listed were not as widely implemented. A combination of lean and Six Sigma was a distant second -- garnering just 12.4% of responses -while nearly 20% of respondents say they haven't implemented any continuous improvement methodology. Here's the complete breakdown of survey responses: Continuous Improvement Method Implemented Percentage Of Respondents Lean manufacturing

40.5%

Lean and Six Sigma

12.4%

Total quality management

9.9%

Agile manufacturing

3.8%

Toyota Production System

3.1%

Six Sigma

3.1%

Theory of Constraints

3.0%

Other

5.2%

No Methodology

19.1%

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} 6.5.3 PDCA Improvement Cycle: Continuous improvement is an ongoing effort to improve products, services or processes. These efforts can seek “incremental” improvement over time or “breakthrough” improvement all at once. Among the most widely used tools for continuous improvement is a four-step quality model—the plan-do-check-act (PDCA) cycle, also known as Deming Cycle or Shewhart Cycle: 

Plan: Identify an opportunity and plan for change.



Do: Implement the change on a small scale.



Check: Use data to analyze the results of the change and determine whether it made a difference.



Act: If the change was successful, implement it on a wider scale and continuously assess your results. If the change did not work, begin the cycle again.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} Other widely used methods of continuous improvement — such as Six Sigma, Lean, and Total Quality Management — emphasize employee involvement and teamwork; measuring and systematizing processes; and reducing variation, defects and cycle times.  Continuous or Continual??? In English-language linguistic prescription there is a common piece of usage advice that the word "continuous" should be used for things that are continuous in a way literally or figuratively equal to the mathematical sense of the word, whereas the word "continual" should be used for things that continue in discrete jumps (that is, quantum-wise). When this distinction is enforced, it is more accurate to speak of "continual improvement" and "continual improvement processes" than of "continuous improvement" or "continuous improvement processes". Meanwhile, for several decades it has been common usage in the linguistic corpus of business management to use the one set term, "continuous improvement", to cover both of those graph shapes in umbrella fashion. It is merely the way the word has been conventionally used in this context, in a common understanding that existed regardless of prescriptive preferences. However, ISO has chosen the more careful usage for its standards including ISO 9000 and ISO 14000; so it may be reasonable to expect that usage among business managers will evolve in coming decades to conform to the preferred usage (and in some cases, already has). The terms continuous improvement and continual improvement are frequently used interchangeably. But some quality practitioners make the following distinction:  Continual improvement: A broader term preferred by W. Edwards Deming to refer to general processes of improvement and encompassing “discontinuous” improvements—that is, many different approaches, covering different areas.  Continuous improvement: A subset of continual improvement, with a more specific focus on linear, incremental improvement within an existing process. Some practitioners also associate continuous improvement more closely with techniques of statistical process control. 6.5.4 Challenges Of Continuous Improvement: It’s difficult to find anybody that would publicly say continuous improvement is bad for an organization. Yet, the harsh reality is that many of us do not strive for improvement in our daily activities. This is the continuous improvement paradox. That is, continuous improvement is something we all sincerely believe in, but fail to enact. Leadership theory would suggest this happens for one of two Page 149

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} reasons. The first is that we are capable (we have the skills, knowledge) of continuous improvement but consciously choose not to improve. The second possibility is that we truly want to improve, but do not possess the skills and knowledge to develop, implement and sustain an effective continuous improvement strategy. Although the former may be true in environments with poor labor relationships and impoverished employees, the truth is that the latter is, by far, the reason why continuous improvement does not flourish inside our organizations. In other words, we want to improve. But we don’t know how to do it. Consequently, we need to uncover and address the key drivers that keep us from reaching our organizational and personal potential. There are many reasons that companies do not succeed with continuous improvement. However, the common problems across the industry are:  Lack of a problem solving and continuous improvement model  Lack of time and trained resources to commit to continuous improvement  Lack of discipline and corporate infrastructure to sustain improvements  Bridging the Gap: Organizations need a model to use in order to improve. This map or model becomes a common language that all members of the organization use to articulate the value and work plan of any specific improvement initiative. Although there are many models available to us (such as “Plan-Do-CheckAct” from Lean, “Define-Measure-Improve-Control,” from Six Sigma), they all drill down to a similar approach to problem solving. This approach is to look at a situation where we intuitively know improvement is required and answer the following questions.     

What is the current condition of this process? What is the desired condition of this process? What is the actual-desired gap? What can be done to close the gap? How can we sustain the improvement over time?

Depending on the complexity of the problem, answering these questions may be simple and require few analytical tools, or we may require special skills and analytical tools. However, the ultimate goal is to be able to communicate where we are today, where we want to go and how we will get there. This takes time and resources.

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Team Members: Muhammad Ehsan (G.L)

D-08-IND-314

Fiaz Ahmad

D-08-IND-331

Shahid Ali

D-08-IND-337

Muhammad Idrees

D-08-IND-338

Rahmat Ali

D-08-IND-339

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6.1 Ist Brainstorming Session: Team first meeting was conducted on 31 October 2011. An awareness session conducted on Lean Manufacturing & Six Sigma

6.2 2nd Brainstorming Session: In this session, a deep study of the whole plant was conducted by all the team members, and also meetings with the concerns of the different departments have been made. Also efforts were being made to find out some specific problem, which they are facing, not much has been told to us regarding the problems. In this session we also selected some sections of the plant (due to limited time, which we have) to implement and improve the techniques and tools of Lean Manufacturing and Six Sigma. Areas selected are: Main Assembly Line Warehouse First we go through each and every stage of these areas, to find out whether these areas are working with their full capacity or not.

6.3 3rd Brainstorming Session: From this session, we practically start our work.

DEFINE: First to find out whether Main Assembly Line is working properly or not, we start to perform time and motion study. Almost every step was monitored and brought under study to find out whether there is any time loses or not?

Measure: After performing and drawing an image of the Main Assembly Line, and comparing all the data with the standard data.

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All these reading are average values of the various observations being made.

4th Brainstorming Session: After gathering all the data, then all the team members set around and made discussions and also compare data with standard data to get a clear picture of the wastages in assembly line.

Analyze: Here we look to the rout causes of the problems that why there is a high amount of time loses.

Figure: Different causes investigated which result in loses of time First the huge delays which the workers usually experience are mainly due to improper materials being supplied by the vendors. Secondly the workers working on the main assembly line are also mostly semi-skilled workers and a Page 153

{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} very few of the workers are skilled and experienced. But the main reasons are the improper tools and materials, which cause interruption in the work and are also, become the reason of huge delays. From all the data, which we gathered, give us a clear picture of the other problems as well. Therefore to understand it easily, we classify these in the following broad headings: 1) Improper Work Place Design 2) Materials Quality Issues (Local Parts)

In the next phase, we will cover each of these separately.

1) Improper Work Place Design: First we want to give a few example, which will show that why we are saying this that is problems in the work place.

Main Assembly Line

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All these pictures shows that the work place design is improper and various tools used are also out-dated. out dated. There are certain things which can easily updated and even with-out with much more or high investments. Like the nut and bolt tightening gun are mostly used ed in the assembly line, but the pipe which is attached to these gun are a straight pipe, this can be replace with the new spiral pipe, which has the tendency to contract after use, thus the pipe attached to the gun will not effect the movement of the work er, after he use the tightening gun.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} Similarly the jigs or trolley which are used to hold materials or product for the use on the main assembly line, are also not placed properly, this also effect the movement of the workers. This problem can be tackle down by placing the rail on the floor, which will help in aligning these trolleys and will also provide and proper way for workers for their easy movements without causing any fatigue to the workers, which will reduce the efficiency of the workers.

2) Materials Quality Issues (Local Parts): Materials are most important element of the assembly process; the occurrence of any issue in the required materials will slow down whole process. Therefore much emphasis should be given to the materials. Sample No. of Defects per Vehicle

No. Defect in Process

1

4

18

2

5

36

3

17

47

4

9

24

5

6

37

6

9

8

7

4

18

8

1

37

9

13

53

10

3

15

Total

71

--

These are problems, which occur in the vehicles, these are mainly due to the use of defective sub-assembly parts. Also some are due to the workers negligence but problem under negligence is quite lower as compare to the parts. Page 156

{D-08-IN-314, 314, D-08-IN-331, D D-08-IN-337, D-08-IN-338, 338, D-08-IN-339} D Also we develop a three sigma control for the above data, to find whether the process is under control or not. So, that to take further decision as required. Here we will use the control chart which will show the number of defects per unit, therefore here we use CC Control Chart for attributes. Total number of units inspected or observations = 10 Total number of defects = 71 The Average number of defects def ects per unit is = 71/10 = 7.1, Therefore

= 7.1

Now as we know;

 7.1 + 3

 7.1 + 7.99 = 15.09 15.10 

 7.1 + 3

 7.1 7.99 = 0.89 0.89  0

The green line represent the problems under control, whereas the red color show the out of control problems, as the defects in that specific observation shows too much defects and therefore proper remedial actions should be taken to control these kind of situations.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} Even though in the above case the 3rd observation shows defects on higher side due to the use of defective parts. Therefore these kinds of special cases should be removed to achieve the production with-in the control limits. These are defects find out on the main assembly line, some other defects associated with the vendors supplies are the shown in the following table. These are investigated in the warehouse, when new lots of materials were received in the warehouse and inspection has been done by the quality control concerns. The data is shown in the following table: S.R #

Part Name

Qty

Vendor

Remarks

1

Brkt Fuel Filter

12

Micro Engg.

Hole position out

2

Reinforcement

48

Micro Engg.

Hole position out (CKD)

3

Reinforcement

48

Micro Engg.

Hole position out

4

Brkt Air Cleaner 12

Micro Engg.

Not as per drawing

24

Micro Engg.

Fixture not available

30

A. R. Engg.

Holes missing

5 6

Brkt Engine Mtg Member Cross 2nd

7

Cover Side

06

Javed Engg.

Poor paint quality

8

Brkt Radiator

12

Javed Engg.

Height not as per drawing

9

Hanger Assembly

06

Mehboob Ind.

Center Hole distance out

The above data shows that problems arise on main assembly line are mainly due to the supplies of defective parts from the vendors side.

6.4 4th Brainstorming Session: At this point after having a good know how of the Main Assembly Line and it problems, now it is the time to take the required remedial actions to remove or minimize these issues/problems to get smooth work flow, so that to achieve high productivity with out surrendering key resources.

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Control: Here for controlling all the above mention issues hard and timely decisions should be made, in order to improve the production capability and also to enable smooth production efficiently and effectively. In order to achieve all this following decisions should be taken: First the work of the quality control department should be made more systematic in order to achieve minimum defects. As we find out that most problems arise due to the unavailability of defect free parts on line, this also effect the smooth production flow, therefore the inspection of the received goods should be made more strictly and more focused. For quality control personnel they should make it possible to not depending on the sample size much, and for complex materials they should go on to perform inspection of the whole lot if possible. Secondly, some automation is also required in the main assembly line, if possible, like more sophisticated tools should be used so that to minimize more workers labor, this will help them in less fatigue and more efficient and effective work performance.

The above example can help worker to do his work efficiently and with less fatigue and labor. Third, “The Attitude Mater A Lot” therefore the workers and even though the management should also have to change their attitude, and do their work on time and also take part in continuous improvement activities or processes, in order to achieve organizational excellence and prosperity.

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Conclusion Ghandhara Nissan Limited is a well known automobile company, seeks to improve its manufacturing processes and desires to produce quality products which can become wow for the customers. Although the processes are very accurate and up to the mark but still there are some problems which we have observed and discussed as under:

Problem # 01: Observation:  Design of the work place and the facilities on it, are not in a standard manner, like the tightening guns are almost present here and there on the work floor, which can reduce the face of work (i-e the pipe which is attached with guns are present on the floor and effect the movement of the workers) and can also cause a mishap).

Suggestion:  This problem can be tackle down by changing the pipes attached with gun, introducing contractible spiral (Able to be shrunk or capable of contracting) pipes.  Introduction of this will result in contraction of pipe attached with the gun, which will then take less space on floor enabling the workers to move freely.

Problem # 2: Observation:  The second problem was related to safety of the workers i-e when the workers were involved in mounting the axel with the chassis, the worker will have to go under the chassis being lift up, with out taking any safety measures which may result in any accident.

Suggestion:  This problem can be solve by taking necessary safety measures like a worker working there should be bound to wear helmet and other necessary safety measures.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339}  There should be safety team to implement and check on the spot whether all the safety measures are followed by the workers or not? They should also have the permission to take the necessary actions against the workers not following the safety rules.

Problem # 3: Observation:  In the warehouse there is no separate portion for the defective parts, sue to which these parts are some time mixed with non defective parts. Also these parts are some time send for assembly which create problems during assembly process and are also detected in the final inspection wasting workers time an skills.

Suggestion  There should be a separate portion for the defective parts and should be properly tagged so that the discrimination between the defective and non defective one become clear and easy. This will also save workers time working in the warehouse in finding the defective parts.

Problem # 4: Observation:  As we have also observed the problems that arises on the “main assembly line” are mainly due to the local manufactured parts.

Suggestion  There should be proper evaluation program for purchasing localized parts from vendors and priority should be quality not price. The overall experience is that the staff members of Ghandhara Nissan Limited are quite cooperative, caring and confident. The really appreciating thing is the obedience of rules and regulations prescribed by the company. By encompassing a pragmatic blend of methods that drives out waste and reduces defects as perceived by customers, Lean Six Sigma has become an integral tool that successfully transform organizational culture and sets organization on the path to relentlessly pursue perfection and achieve operational excellence. Page 161

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GLOSSARY 5S’s: Ordered actions use to achieve a clean, well organized workplace; sort, simplify, sanitized, standardized, sustain. 6M’s: Categories representing the sources of variations (Man, method material, measurement mother nature, machine). 7 Wastes: Transportation, Inventory/storage, Motion, Waiting, , Over production, Over processing, Defects (TIMWOOD). Common Cause: User to refer to variation that happens in the same way from worker to worker, hour to hour, lot to lot etc. on a control chart common causes by definition always fall with in the control limits. Control Chart: A graphical tool for monitoring a process and / or for determining where variation lies, control charts show results over time, with ± 3 sigma boundaries representing the upper and lower control limit (UCL/LCLs). Control Methods: Standard methods implemented during the control phase of the DMAIC process include: fix, minimize, standardize, measure and monitor and communicate and audit. Controllable Inputs: Input variables (X’s) that can be changed to see the effect on the process output variables(Y’s): some times called “knob” variables. Defect: Any other error or nonconformance which adds cost with out adding value. Defective: A part that is not acceptable due to one or more errors. DMAIC: The standard framework of the Lean Six Sigma projects/implementations, which stands for “define measure, analyze, improve, control”. DOE: Design Of Experiment DPMO: Defect Per Million Opportunities DPO: Defect Per Opportunities DPU: Defects Per Unit External Work: Set-up activities which can be performed while the machine (or process) is running. Failure Mode Effects Analysis (FMEA): Tool used to access the potential failure mode of a process and the likely effects of potential failure; developed by NASA to eliminate the failures during planning phase of a project.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} Flow Production: Continuous movement of a product or service from start to finish-without interruption of storage with the intent to eliminate batch sizing and produce at the smallest possible increment. FPY: First phase yield: the measure typically referred as yield. The total number of parts that are accepted divided by the total number of parts that were started. Gage R&R: Gage repeatability and reproductively, a measure of variation arising from the use of a specific measurement device and/or the operator of the measurement device. Pareto Chart: A Pareto chart tests and/or illustrates this relationship by sorting and displaying merits in a descending order chart. PMAM: Process map (not a process flow which does not contain inputs and outputs). PPM: Parts Per Million (Defective) Process Capability Index: Comparison of the voice of the process to the voice of the customer requirements. Process Dispersion: The standard deviation of f(x), symbolically by sigma the Greek letter as sigma. Process Input Variables: Process inputs can be categorized as controllable critical, noise, or standard operation procedures. Process Location: The mean or average of f(x), symbolically by u the Greek letter known as “mu”. Pull Material System: A method of controlling the flow of resources by replacing what has been consumed. Pure Waste: Weak process that adds no value and is not required by the customer. QFD: Quality Function Deployment Queue Time: Time a product waits between the value added process steps: if inventory exists between the process steps, can be approximated by dividing the inventory by customer demand for a time frame. R chart: R Chart (Range Chart) also called the “with in” chart as the points on the chart represent within group variation; this control chart is used to display change with in subgroups; the R chart for a set of data must be in control, more technically defined as stable, to be able to use an X-bar chart based on the same data. Required Waste: Process that adds no value to the product , but is required by the current process.

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} Rework: Any work that must be done to correct product or process defects. Risk Priority Number (RPN): See risk priority number RTY: Rolled throughput yield; the probability that apart will make it through multiple process steps without a defect. SCOR: Supply chain operations reference; a methodology that extends the scope of the value stream, starting with your supplier’s supplier and continuing to your customer’s. Setup Time: The elapsed time from production of the last good product to the production of the first good product associated with changing the process from one product to another. Sigma (Excel Function): Account for shift and drift if necessary by adding 1.5. Sigma: th

18 letter of the greek alphabet; mathematically understand to represent standard deviation. SIPOC: Boundary scoping tool used in the design phase to identify suppliers, inputs, process, outputs and customers. Six Sigma: Philosophy focuses on defect prevention through the use of statistical tool as opposed to defect detection through inspection. SMED: Single minute exchange of dies; SMED performance levels for the changing of tooling (9minutes and 59 sec: or less). SOP: Standard operation procedure SPC: Statistical process control Standard Deviation: Parameters used to characterize the process dispersion. Standard Operation Procedures: Procedures that describes how the process is running and identify certain factors to monitor and maintain; standard procedure for running process. Stretch Goals: Goals and objectives that require employees to achieve more than normally though possible. Talk Time: “Takt” is German word for metronome; synchronizes the pace of the process to match the pace of customer demand; calculated as available time divided by customer demand. TDU: Total defects per unit, the sum of all DPUs for all parts in an assembly or all process steps in a process flow diagram. Thought Process Map (TMAP): Project Strategy-Planning Tool

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{D-08-IN-314, D-08-IN-331, D-08-IN-337, D-08-IN-338, D-08-IN-339} Throughput Time: Cycle time + Queue Time; actual time for a product to move through a production process. Value Stream Map (VSM): A map of the product , information, and material flows of a process; with value-added and non-value added data gathered and displayed for each step. 3

Value: A capability provided to a customer at the right time at an appropriate price, as defined in each case by the voice of the customer. Value-Added: The enhancement added to a product or service by a company before the product is offered to customers. Visual Control: Indicators which allow employees to detect visually whether a process is in or out of control; example include temperature gauges, control charts, tool boards, etc. VOP: Natural variability of a process typically characterized by a normal distribution. VOC: Voice Of Customer (see Quality Function Deployment) VSM: See Value Stream Map Waste: Any thing that adds cost without producing a corresponding benefit. X-Bar Chart: An averages chart, also called the “between” chart because the points represent variation between groups; this control chart examines the average of samples in a sub group.

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BIBLIOGRAPHY/ REFERENCE Books: 1) FUNDAMENTALS OF QUALITY CONTROL & IMPROVEMENT By: Amitava Mitra (Second Edition) 2) MAYNARD’S INDUSTRIAL ENGINEERING HAND BOOK By: K.B Zandin (Fifth Edition) 3) INTRODUCTION TO STATISTICAL QUALITY CONTROL By: D.C. Montgomery (Fourth Edition) 4) AN INTRODUCTION TO OPERATION MANAGEMENT BY: C.D.J. Waters 5) QUALITY CONTROL By: D.H. Besterfield (Seventh Edition)

E-Books: 1) HANDBOOK OF INDUSTRIAL ENGINEERING By: G Salvendy (Third Edition) 2) MAINTENANCE ENGINEERING HANDBOOK By: R.K Mobley (Seventh Edition) 3) OPERATION MANAGEMENT (An Integrated Approach) By: R.D Reid & N.R Sanders

WEB SITES: 1) http://www.lean.org/WhatsLean/History.cfm 2) http://www.managementstudyguide.com 3) http://ghandharanissan.com.pk 4) http://books.google.com.pk 5) http//en.wekipedia.org Page 166