slides

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LEAN MANUFACTURING

Module-2

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POM04

Value Stream Mapping

A very powerful tool for implementing the lean transformation

process is Value Stream Mapping (VSM).

Value stream mapping is a pencil and paper tool that helps you

to see and understand the flow of material and information as

a product makes its way through the value stream.

A value stream is all the actions (both value added and non-

value added) currently required to bring a product through the

main flows essential to every product.

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Value Stream Mapping

Current State Map

Follow a products production path from customer to supplier, and

carefully draw a visual representation of every process in the

material and information flow.

Future State Map

Ask a set of key questions and draw the map of how value should

flow in the future (desired flow).

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Value Stream Mapping4

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Value Stream Mapping5

Steps

Select one value stream - a product familyWalk the physical flow of material no data collectionWalk the flow again, collecting dataDraw the Current State MapIdentify opportunities to eliminate waste and create flowDraw the Future State MapGenerate a Value Stream PlanStart making the improvementsConduct Value Stream ReviewsRepeat the cycle

Selecting a Product Family6

A Product Family

A family is group of products that pass through similar processing steps and over common equipment in the downstream process and have similar work

contents.

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Value Stream Mapping Icons1

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Terms one should know before mapping

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Customer Need

Demand : Number of units per day the customer wants.

Available Working Time: Scheduled working time minus breaks ,meetingand clean up time

Inventory

WIP : Number of units waiting to be worked on or waiting to be moved.

Finished: Number of units in stores or waiting to be shipped .


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Each Process StepCycle Time : The time between one part coming off the process and thenext part coming off.

Number of people: Required to operate the process

Uptime: The percentage of time the equipment is available to run ,whenit is needed to run

Batch Size: Typical lot size or minimum.

Change Over Time: The time from the last good piece of one batch to thefirst good piece of the next batch.

EPE..Every part every ____ .How often do you changeover to producethis part.


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Each Process Step

Takt Time TT : Available time per day/demand per day.

Inventory(Measured in days) = Number of units /demand perday

Overall Flow

Process Lead Time : The time for a unit to make all the way through the process (Sum of Inventory days + Sum of Cycle times).

Processing Time: The time actually spent performing work on the unit(Sum of Cycle times)

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ACME STAMPING CASE

STUDY

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Whats wrong with Acmes Value Stream?

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Traditional mass production thinking about economies of scale

Batches pushed through = Waste

Look at VA time compared to time in plant

LEAN MANUFACTURING

Module-2 & Module-3

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POM04

Draw the Future State3

The Purpose

Highlight the Sources of Waste

Eliminate them

In short period of time

The Goal

To build a chain of production where the individual processesare linked to the customer(s) either by continuous flow(the best ) or

pull and each process gets as close as possible to producing only

what the customers(need) when they need it

Guidelines for Drawing a Future State

Guideline#1 Produce to Takt Time

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What is the Takt Time for the chosen Product family?

Takt time = Available working time = 27600 seconds per shift = 60 seconds

Customer demand 460 units per shift

This Takt time means in order to meet the customer demand in

the available time Acme needs to produce a steering bracket

every 60 seconds in its assembly operation

This number does not include time for equipment downtime,

change overs between left and rightdrive brackets or

scrap and rework

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Guideline#2 Develop Continuous flow when ever possible

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Continuous flow refers to one piece at a time ,with each item is passed from one processing step to the next without stagnation (and

many other wastes) in between

Continuous flow is the most efficient way to produce and one should use lot of creativity in trying to achieve it.


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Isolated Islands

Continuous Flow


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Guideline#3 Use Supermarkets to control production where continuous

flow does not extend upstream

There are often spots in the value stream where continuous flow is not possible and

batching is necessary. There can be several reasons for this including

Some processes operate at very fast or slow cycle times.

Some processes need to changeover to serve multiple product families( e.g. stamping orinjection molding)

Some processes, such as those at suppliers, are far away and shipping one at a time isrealistic.

Some processes have too much lead time or are too unreliable to couple directly to otherprocesses in a continuous flow


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Install a pull system where continuous flow is interrupted(even when theupstream process must still operate in a batch mode

A production kanban triggers production of parts while a

withdrawal kanban is a shopping list that instructs the material handler to

get and transfer parts

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Guideline#4 Try to send the customer schedule to only one production

process

By using supermarket pull systems you will typically need to schedule only onepoint in your door-to-door value stream. This point is called the pacemaker

process because how you control production at this process sets the pace for all

upstream processes.

So the pacemaker is frequently the most downstream continuous flow processin the door-to-door value stream . On the future state map, the pacemaker is the

production process that is controlled by the outside customers orders.


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Guideline#5 Leveling the production mix at the pacemaker

Leveling the product mix means distributing the production of different products evenly over a time period .

For example instead of assembling all the "Type A products in the morning and all the Type B in the afternoon ,leveling the mix

means alternating repeatedly between smaller batches of A

and B.


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The icon for production leveling is this symbol, which is inserted into an

information flow arrow.

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Guideline#6 Leveling the production volume

Regularly release only small,consistent amount of work(usually between 5-60min worth) at the pacemaker process and simultaneously take away an equal

amount of finished goods.We call this practice a paced withdrawal.

We call the consistent increment of work the pitch, and often calculate thepitch increment based on packout container quantity(the number of parts one

finished goods container holds) or a multiple or fraction of that quantity

For example, if the takt time = 30 seconds and the pack size = 20 pieces, then

pitch = takt time pack size= 30 sec 20 pcs = 10 minutes


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In other words ,every 10 minutesa) Give the pacemaker process instruction to produce one pack

quantity

b) Take away one finished pitch quantity

One way to think of pitch is as your management time frame. How

often do you know your performance to customer ?


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There are many ways to practice paced withdrawal of small,consistent quantities of work.

A tool used at some companies to help both the mix and volume of

production is load-leveling box or Heijunka box


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A load leveling box has a column of kanban slots for each pitch

interval, and a row of kanban slots for each product type. In this system,

kanban indicate not only the quantity to be produced but also how long

it takes to produce that quantity (based on takt time).

Kanban are placed(loaded) into the leveling box in the desired mixsequence by product type(see the leveling box illustration).The material

handler then withdraws those kanban and brings them to the pacemaker

process,one at a time,at the pitch increment

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Guideline#7 Develop the ability to make every part every day(then

every shift every hour or pallet or pitch) in fabrication process upstream

of the pacemaker process.

This describes how frequently a process changes over to produce all part variations. An initial goal at many plants is to make at least every

part every day for high-running part numbers.

In general, we note either the batch sizes or EPEI in the data

boxes.EPEI stands for Every part Every Interval-where interval is

replaced with a time such as week,day,shift,hour,pitch or takt

LEAN MANUFACTURING

Module-3 Continuation

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POM04

Three Stages of lean application

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Flow Stage

The tools and concepts necessary to establish flow include

Continuous flow-one for- one manufacturing. Work cells. Line balancing. Standardized work. Quick Changeover . Autonomous maintenance. In-process supermarkets. Kanban system. First-in,first out(FIFO) lanes.

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Continuous Flow

Continuous flow can be summarized in a simple statement move one , make one(or move one small lot, move one small lot)

Continuous flow processing means producing or conveying

products according to three key principles

Only what is needed

Just when it is needed

In the exact amount needed


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SMED:

It is a theory and set of techniques that makes it possible to set up or changeover the equipment in less than 10 minutes.

SMED begins with a thorough analysis of current setup procedures .It is applied inthree sequential stages:

1) Distinguish between internal setup tasks that can performed only while the machine is

shut down and external setup tasks that can be performed while the machine is running.

2) Convert internal tasks to external tasks when possible ; improve storage and

management of parts and tools to streamline external setup operations.

3) Streamline all setup activities by implementing parallel operations(dividing the work

between two or more people) using functional clamping methods instead of bolts,

eliminating adjustments and mechanizing when necessary.


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Quick changeover:

When you establish takt time ,create work cells and implement standardizedwork ,it is likely that you want to increase the variety of products flowing through

the cells.

Such flexibility requires tooling changes that do not disrupt continuous flow .Thismeans for achieving this goal is the quick changeover(QCO) method.

QCO originates from a methodology called single-minute exchange ofdie(SMED) that was developed by Sheigo Shingo at Toyota.


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Autonomous maintenance

Maintenance that is performed by the machine operator rather than the maintenance staff.

Autonomous maintenance includes tasks such as lubricating and tighteningmachine parts.

Autonomous maintenance is a basic element of total productivemaintenance

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In-process Supermarkets

A Supermarket of work-in-process may be necessary to ensure that flow is possible.

It is used when there are multiple demands made on a machine or aprocess.

Where obstacles to continuous flow exist , you can use an in-processsupermarket system


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Kanban System

In Japanese , Kanban means card , billboard , or Sign .

Kanban refers to the inventory control card used in a pull system.

Kanban also is used synonymously to refer to the inventory controlsystem developed for use within Toyota Production System


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Types of Kanban

Production Kanban: authorizes the production of goods

Withdrawal Kanban :authorizes the movement of

goods

Signal Kanban: indicating the number of parts to beproduced in a batch operation


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FIFO Lanes

Sometimes it is appropriate to use a FIFO(first-in,first-out) lane between decoupled processes instead of a supermarket to maintain a

flow between them

FIFO is like a chute that can hold a certain amount of Inventory ,with thesupplying process at the chute entrance and customer process at the exit.

Parts leave the chute in the same order that they went in

If the FIFO lane gets full ,the supplying process must stop producing until thecustomer has used some of the Inventory.

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FIFO Lanes

FIFO lanes are useful in the following situations

Where multiple value streams meet before product customization and large batch operations where dissimilar parts go through an operation such as

anodizing, welding, stamping or painting .

Another example, you ship to an outside plating process one time per day.The plater can handle only 50 pieces per day. So you set up a FIFO lane sized

to hold at most 50 pieces of plating work.


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FIFO Lanes

Difference between Supermarket and FIFO

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Supermarket

Controlled inventory- downstream process pulls what it needs and the upstream process produces whats consumed.

FIFO Lane

Controlled inventory(required) fed to downstream process in a specific order.

Sequenced pull from an upstream process with short lead time

FIFO

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In the case of custom products and job shops, the scheduling point often needs to be further upstream as shown below.

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LEAN MANUFACTURING

KAIZEN & TOTAL PRODUCTIVE

MAINTENANCE

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POM04

KAIZEN

Kaizen means breaking apart the current situation ,analyzing it

and quickly putting it back together to make it better.

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KAIZEN

Kaizen events are sometimes called .

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Kaizen Bursts

Kaizen Blitzes

KAIZEN Event Timing

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In addition to the event itself ,there is event planningA few days , spread over weeks

and follow-up

A Typical Kaizen event is 3-5 days in lengthCan be shorter (< 1day) depending on the scopeMay be long enough to allow implementation and demonstration of results.

A complex problem (e.g. , implementation of pull system) may be broken down into several Kaizens.

Each must have a defined ,demonstrable end point

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KAIZEN BENEFITS

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Improvement get made

Waste gets eliminated

Results are seen quickly

Participants learn skill and get experience

Cross functional teams provide better understanding of end-to-end process

The solution has strong user ownership

Employee motivation is enhanced

A successful event builds energy for the next steps.

Things

get done

KAIZEN BENEFITS

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Improvement get made

Waste gets eliminated

Results are seen quickly

Participants learn skill and get experience

Cross functional teams provide better understanding of end-to-end process

The solution has strong user ownership

Employee motivation is enhanced

A successful event builds energy for the next steps.

Things

get done

KAIZEN EVENT SPECIFIES

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PLAN THE EVENT

CONDUCT THE EVENT

EVENT FOLLOW-UP

PLANNING A KAIZEN EVENT

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1.DEFINE THE SCOPE

2.SET THE OBJECTIVES

3.SELECT THE TEAM

4. SELECT THE EVENT

LEADER

5.DECIDE ON EVENT

LENGTH

6.SCHEDULE THE EVENT

7.ARRANGE THE

PARTICIPANT AVAILABILITY

8.ARRANGE THE

MANAGEMENT AVAILABILTY

9.DEFINE PREWORK

10.SCHEDULE & DO

PREWORK

11.ARRANGE MEETING

FACILITIES

12.ARRANGE FOR

PRODUCTION

INTERRUPTIONS

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CONDUCTING A KAIZEN EVENT

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1.KICK OFF

,PURPOSE,SCOPE

2.SET THE IMPROVEMENT

TARGET

3.TRAINING:

PROCESS,TOOLS

4. ANALYZE THE

PROBLEM

5.PROPOSE A

SOLUTION

6 .IMPLEMENT THE

SOLUTION

7.IMPROVE THE SOLUTION

8.DOCUMENT THE

SOLUTION

9.DEFINE A CONTROL

PLAN

10.PRESENT RESULTS TO

THE MANAGEMENT

11.CELEBRATE THE

SUCESS

KAIZEN EVENT FOLLOW UP

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1.PUBLICIZE THE

PROCESS

2.AUDIT THE

PERFORMANCE

(ON-GOING)

3.LEVERAGE TO SIMILAR

SITUATIONS

Total Productive Maintenance

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What is TPM?

It is a holistic approach to equipment maintenance that strives to achieve

perfect production.

No Breakdowns. No small stops or slow running. No defects.

In addition it values a safe working environment

No accidents

Source:http://www.leanproduction.com/tpm.html


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TPM emphasizes proactive and preventive maintenance to maximize theoperational efficiency of the equipment

The implementation of a TPM program creates a shared responsibility for equipment that encourages greater involvement by plant floor workers.

It blurs the distinction between the roles of production and maintenance byplacing a strong emphasis on empowering operators to help maintain their

equipment.

In the right environment this can be very effective in improving productivity (increasing uptime, reducing cycle times, and eliminating defects).

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The Traditional TPM Model

The traditional approach to TPM was developed in the 1960s and consists of 5S

as a foundation and eight supporting activities (sometimes referred to as pillars).

LEAN MANUFACTURING

Module-5 SIX SIGMA

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POM04

Process Capability Study

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A Process capability study is a systematic procedure for determining the capability of a process

The Process capability study may include studies to improve the process and in turn the capability of the process.

A Process capability study measures the capability of a specific piece of equipment or process under specific operating conditions.


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Steps for conducting a process capability study

Defining the processing conditions

Selecting a representative operator

Ensuring that sufficient raw materials are available

Ensuring that the measurement system is reliable

Step 1:Preparing for the study: This involves

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Running the process and collecting data

Ensuring simultaneously that the process is stable using the same methods as for setting up a control chart

Since common process capability calculations are based on a stable , normally distributed process . If the process is not stable , one should not

conduct a process capability study.

Calculating the process mean and process variation for the measured output.

Step 2: Determine the process output: The process output can be determined by


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A specification normally consists of the nominal or ideal measure for the product and tolerance, which is the amount of variation acceptable to the

customer.

Step 3: Comparing the process output to the specification

Tolerance limit is the difference between the upper specification limit(USL) and the lower specification limit(LSL).


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There are a variety of activities to improve a process such as 8D problem solving or mistake proofing.

Step 4: Take action to improve the process.

Process Capability Indices

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The process Capability Index(Cp) is defined as the ratio of the specification width to the natural tolerance of the process.

Cp = UTL-LTL/6

UTL = upper tolerance limit

LTL = lower tolerance limit

= Standard deviation of the process

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Process Capability Study Process Capability Indices

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The process Capability Index(Cp) is defined as the ratio of the specification width to the natural tolerance of the process.

Cp = UTL-LTL/6

UTL = upper tolerance limit

LTL = lower tolerance limit

= Standard deviation of the process

Cp Value

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Cp Value Evaluation Action

Cp>1.67 Too much capabilty No concern of measure in product variation

1.67>Cp>1.33 Sufficient capability Ideal condition,maintain it

1.33>Cp>1.00 Moderate capabilty

Process control has to be firm.When Cp is

close to 1,rejections can occur

1.00>Cp>0.67 Insufficient capability

Rejections are there.100 percent inspection is

required.Process needs to be controlled and

improved

0.67>Cp

Capability very much

insufficient

Quality not satisfactory.Standards and

processes need immediate review and

improvement

Sampling Methods

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Sampling methods are classified into:

1. Non-Probability sampling

Judgmental sampling

2. Probability sampling

Simple random sampling Systematic samplingStratified samplingCluster sampling

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Sampling Methods

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Simple random samplingEvery item in the population has an equal probability of being selected

Stratified samplingThe population is partitioned into groups, or strata, and a sample is

selected from each stratum

Systematic samplingEvery nth (4th, 5th etc.) item is selected

Cluster samplingA typical group is selected, and a random sample is taken from within

the group

Judgment samplingExpert opinion is used to determine the location and characteristics of a definable sample group

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Acceptance Sampling

Acceptance sampling is an important field of statistical quality control that was popularized by Dodge and Romig .

It was originally applied by the US military for testing of bullets during World War II.

A decision may be made to accept or reject a lot or consignment of

items sent by a vendor depending upon the number of defective (non

conforming) items found in the sample drawn at random from the lot.

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Sampling Plans

There are three types of acceptance sampling plans.

1. Single sampling plan

2. Double sampling plan

3. Multiple sampling plan

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Sampling Plans

Single sampling plan: When a decision on acceptance or rejection of the lot is made on the basis of only one sample , the acceptance is known as a

single sampling plan.

If N is the lot size from which the sample is drawn, n the sample size, c the

number of allowable defectives in the sample, then the sampling plan shown.

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Single Sampling Plan

Accept the lot

Inspect a sample of n pieces

If the number of defectives(m)

Exceeds cDoes not exceed c

Reject the lot

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Double Sampling Plan

In a double sampling plan ,the decision on acceptance or rejection of the lot is based on two samples .We take a second sample if we are not in a

position to arrive at a decision about accepting or rejecting the lot on the

basis of a single sample.

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Double Sampling PlanInspect n1 Pieces

If the number of defectives

C1

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Tools for Process Analysis

Process Mapping

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A process map or flowchart identifies the sequence of activities or the flow

of materials and information in a process.

Connector

Process/Step/ActionDecision Begin/End

Start/Stop

LEAN MANUFACTURING

Module-5 SIX SIGMA

66

POM04

Measurement System Analysis(MSA)

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A Measurement system analysis is an experimental and mathematical model of determining how much the variation within the measurement

process contributes to overall process variability

Accuracy vs Precision

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Accuracy is defined as the closeness of agreement between an observed value and an accepted reference value or standard.

Precision is defined as the closeness of agreement between randomly selected individual measurements or results.

A measurement system may be precise but not accurate.

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Instrument A =0.248 in

Instrument B = 0.259 in

Standard value =0.25 in

A is more accurate than B

Example

Instrument A =

(0.248, 0.246, 0.251)

Instrument B =

(0.259,0.258,0.259)

B is more precise than A


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Repeatability vs Reproducibility

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Repeatability or equipment variation is the variation observed when thesame operator measures the same part repeatedly with same device.

Reproducibility, or operator variation, is the variation observed whendifferent operators measure the same parts using the same device.

Measurement System Evaluation and Verification

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Measurement System Evaluation and Verification

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LEAN MANUFACTURING

Module-5 SIX SIGMA

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POM04

FAILURE MODE EFFECTS ANALYSIS(FMEA)

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Failures are any errors or defects ,especially ones that affect the customer

and can be potential or actual.

FMEA is a step-by-step approach for identifying all possible failures in a

design, a manufacturing or assembly process or a product or service.

Effects analysis refers to studying the consequences of those failures.

Types of FMEAs

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The different types of FMEA are:

1. System- focuses on global system functions

2. Design- focuses on components and subsystems

3. Process-focuses on manufacturing and assembly processes

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System FMEA

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Analysis is at highest-level analysis of an entire system, made up of various

subsystems.

The focus is on system-related deficiencies, including

System safety and system integration Interfaces between subsystems or with other systems Interactions between subsystems or with the surrounding environment Single-point failures (where a single component failure can result in complete failure of the entire system)

Human Interactions

Design FMEA

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Analysis is at the subsystem level (made up of various components) or

component level.

The Focus is on product design-related deficiencies, with emphasis on

Improving the design Ensuring product operation is safe and reliable during the useful life of the equipment.

Interfaces between adjacent components.

Design FMEA usually assumes the product will be manufactured according

to specifications.

Process FMEA

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Analysis is at the manufacturing/assembly process level.

The Focus is on manufacturing related deficiencies, with emphasis on

Improving the manufacturing process Ensuring the product is built to design requirements in a safe manner, with minimal downtime, scrap and rework.

Manufacturing and assembly operations, shipping, incoming parts, transporting of materials, storage, conveyors, tool maintenance, and

labeling.

Process FMEAs most often assume the design is sound

FMEA Work Sheet

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FMEA Example

FMEA

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SEV = How severe is effect on the customer?OCC = How frequent is the defect likely to occur?DET = How probable is detection of defect?

RPN = Risk priority number in order to rank concernsRPN =SEV x OCC x DET

RPN > 90 (requires corrective action)

DESIGN OF EXPERIMENTS(DOE)

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DOE is an entire field of statistics devoted to understanding the often complex relationships in a process and finding the most efficient and

effective combination of factors producing the highest quality output.

It can help you identify not only single factors that influence an outcome , but also interactions between factors that help or hinder.

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Simple Design Experiment

Outcome of Interest: % or number of lost sales

Factors chosen for the study

(based on brainstorming and

discussion among team

members about the most

contributors

Sequence in which customers are contactedExperience level of the sales personQuantity discounts

Level for the factors

Generally DOE test each

factor at two levels , but some

designs allows for three or

more

Sequence

1. Customers receive a brochure , then a

follow-up call

2. Customers receive a call , then a follow-

up brochure

Experience level

1. Less than six months

2. Six months or more

Quantity discounts

1. 10 % discount if purchase totals $ 100

more

2. 15 % discount if discount if purchase

totals $ 100 or more

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Simple designed experiments eight trials

LEAN MANUFACTURING

Module-5 SIX SIGMA

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POM04

Definitions of quality

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Traditional Definition Quality means fitness for use

Modern Definition Quality is inversely proportional to variability

Quality Improvement is reduction in variability in processes and products

What is Six Sigma?

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Six sigma can be best described as a business process improvement

approach that

seeks to find and eliminate causes of defects and errors,reduces cycle times and cost of operations,improves productivity,better meets customer expectations, andachieves higher asset utilization and returns on investment in manufacturing and service processes.

Six Sigma was born when Motorola published its Six Sigma quality programme in 1987.

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What is Six Sigma?

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Six sigma is based on three key quality principles

Focusing on customers

Critical to quality parameters (CTQs)

Continuous improvement

Employee participation and empowerment

Six sigma is based on the philosophy of integrated systems based

thinking

Six Sigma

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Defect

Anything that does not meet customer requirements is called defect.

Metric

A metric is a verifiable measurement of some particular characteristic ,either numerically (e.g. percentage of defects ) or in qualitative terms (e.g. level of

satisfaction poor or excellent).

In Six sigma a defect or non-conformance is a measure of quality

Defects per million Opportunities(DPMO)

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Defects per unit

Defects per million opportunities(DPMO)

DPMO = (Number of defects discovered/opportunities for error)*1000000

Defined as number of defects in a given unit of product or process.

Opportunity for error = Number of units produced Opportunities for defects per unit

Defects per million Oppurtunities(DPMO)

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Use of DPMO is used to define quality broadly

For Six Sigma projects ,the value is 3.4 defects per million opportunities

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Defects per million Oppurtunities(DPMO)

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If the average no of bags per customer is 1.6 and the airline recorded 3 lost bags for 8000 customers in one month .

No of defects discovered = 3 No of opportunities = 1.6 8000 = 12800 DPMO = (3/12800 ) 1000000 = 234.375

Sigma Level

Sigma Level = NORMSINV(1- Number of defects discovered/opportunities for error) + 1.5

Sigma Conversion Table

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DPMO & Sigma Level

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HudsonBella company makes designer bags for several of its client stores

in Oklahoma. During

the quality inspection conducted on 500 random bags on each of its three

manufacturing lines on

Sep 5,

2012, following defects were found:

Line 1: 10 defects

Line 2: 15 defects

Line 3: 25 defects

What is the overall sigma level at which HudsonBella is operating ?

DPMO & Sigma Level

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An electronics firm manufactures 500,000 circuit boards per

month. A random sample of 5,000 boards is inspected every

week for 5 characteristics. During a recent week, 2 defects were

found for one characteristic, and one defect, each, was found for

the other four characteristics. If these inspections produced defect

counts that were representative of the population, what is the

overall sigma level for the process? What is the sigma level for

thecharacteristic that showed 2 defects?

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Sigma Problem Solving Methodology

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The problem solving methodology used in Six Sigma is called DMAIC

(Define , Measure , Analyze , Improve , Control

Define Phase

What are the problems and their scope?Identify the customers and the critical to quality parametersAddress project management issues such as what will need to be done ,by whom and when.

What are the independent and dependent variables affecting the project?

Define Phase

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The customer perception about quality attributes are updated from time

to time by conducting customer surveys.

Important tools used in this Phase

Brainstorming

Pareto Analysis

Quality Function Deployment (QFD)

Process Mapping

Project Charter

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In the Define phase ,the project leaders create a Project Charter.

Necessary Project Charter Areas

Project Title: It is important to the name the project with a properly descriptive title that will allow people to quickly view and select your project

based on key words and phrases.

Ex: If you are increasing Call Centre effectiveness, a possible title may be

Call Centre Cycle time or Call Center Variation reduction.

Project Charter

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Black Belt/Green Belt: This is the person leading the process improvement project . It is important to identify the project leader so management knows

who is leading the effort and others can locate the leader for gather further

knowledge at a later date.

Mentor/Master Black Belt: It is important to identify a resource for the project leader to lean on if any project questions or issues arise.

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Project Charter

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Project Start Date:

Anticipated Project End Date

Project Charter

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Cost of Poor Quality:

Process Importance

Project Charter

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Process Problem

Process Start/Stop Points

Project Goals

Project Charter

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Team Members

Project Time Frame

Project Measurements

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Measure Phase

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Measuring the processes that impact the CTQs and the defects arising in

the product due to the process.

Identify causal relationships between the process performance(X) and Customer Value (Y), that is

Y =f(x)

Collect data

Measure Phase

107

Important tools used in this Phase

Process Mapping

QFD

Cause and effect matrix

7 Quality control tools

Calculation of process sigma and process capability studies

Gauge R and R studies

ANOVA

Analyze Phase

108

Focus on why defects ,errors or excessive variation occurs

Experiments are conducted to verify the hypothesized relationship

Statistical thinking ,analysis and computer simulation techniques re used

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Analyse Phase

109

Important tool used in this Phase

Gap analysis and improvement goals

Process map analysis

Regression analysis

ANOVA

Test of hypothesis

Improve Phase

110

Focuses on removing or resolving the problem and improving the performance measures of the CTQs

Problem solutions often entail technical and organizational changes

Improve Phase

111

Design of experiments techniques

Test of hypothesis

Important tools used:

Control Phase

112

Focuses on how to maintain the improvements over time.

Can include establishing the new standards and procedures ,training the workforce and instituting controls like check lists , periodic status reviews

,statistical process control charts etc.

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LEAN MANUFACTURING

Module-5 SIX SIGMA

113

POM04

Analyzing and Prioritizing Customer Requirements

114

One approach to Prioritizing customer requirements is called a Kano Analysis based on the ground breaking work of Noriaki Kano, a key

figure in the Japanese quality movement.

Dr. Kano realized the importance of dividing customer requirements into three categories

Dissatisfiers or Basic Requirements

Satisfiers or Variable RequirementsDelighters or Latent Requirements


115

Dissatisfiers or Basic Requirements: Dr Kano often called this type of requirement a Must Be:these features or performance requirements must

be present to meet the minimal expectations of the customers.

The customers probably wont notice if these features or performance standards are met ,but they will notice and be extremely unhappy, if

they are missing.


116

Satisfiers or Variable Requirements.The better or worse you perform on those requirements,the higher or lower will be your rating from a customer.

Price certainly is the most prevalent of the satisfiers:the less a customer has to pay for a given set of features or capabilities,the happier the

customer.

In Kanos terms ,these are the more is better category-the more a customer gets of these features,the more satisfied they are.

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117

Delighters or Latent requirements: These are features,factors or capabilities that go beyond what customers expect or that target needs

the customer cant express for themselves.

No customer ever said Give me a Palm pilot

KANO Model

118

High Customer

Satisfaction

LOW Customer

Satisfaction

Done Very

Well

Not done

or

Done

Poorly

Breakthrough Customer

Needs/features:

Delighters!!Core Competitive

Requirements:

Satsifiers!!

Basic Requirements:

DisSatsifiers!!

Alternatives to Kano Analysis

119

Another way to identify priority customer requirements is to let yourcustomer tell you what they think.

Show they a list of requirements youve developed and ask them torate them individually on a scale of 1 to 5 or rank them sequentially from

most to least important.

High level Process Maps

120

The final step in Define which will probably be on the agenda of your third of fourth team meeting will be to develop a picture of the

process involved in the project by creating a high level flow chart

Some teams are tempted to skip this steps but without it the team will take even longer to focus on the problem.

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121

A block diagram flowchart deriving from Suppliers,Inputs,Process,Outputs and Customers.

General Structure of SIPOC Process Map


122

Suppliers:The people or organization that provides information ,material

and other resources to be worked on in the process.

Inputs :The information/materials provided by suppliers that are

consumed or transformed by the process.

Process :The series of steps that transform(and we hope,add value to)

the inputs.

Output :The product or service used by the customer

Customer:The people,company or another process that receives the

output from the process.


123

Simple SIPOC Process Map

Voice of the Customer

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Customer requirements as expressed in customers own terms.

Obtained through

Comment cards and formal surveys

Focus groups

Direct customer contact

Complaint analysis

Internet monitoring

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Cost of Quality(COQ)

125

Cost of quality are costs associated with avoiding poor quality or those

incurred as a result of poor quality.

Prevention costs are investments made to keep nonconforming products

from occurring and reaching the customer.

Quality planning costs

Process control costs

Training and general management costs


126

Appraisal costs are costs associated with efforts to ensure conformance to

requirements , generally through measurement and analysis of data to

detect non conformance

Test and inspection costs

Instrument maintenance costs

Process measurement and control costs


127

Internal failure costs occur as a result of unsatisfactory quality found

before the delivery of the product to the customer.

Scrap and rework costs,including material ,labor and overheadCost of corrective actionDowngrading costs,such as revenue lost when selling a product at lower price because it does not meet specifications

Process failures,such as unplanned downtime or unplanned equipment repair.


128

External failure costs occur after poor quality products reach the

customer.

Costs due to customer complaints and returns , including rework or returned cancelled orders and freight premiums.

Product recall costs and warranty claims ,including the cost of repair or replacement as well as associated administrative costs

Product liability costs , resulting from legal actions and settlements

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PARETO ANALYSIS

129

Pareto analysis helps to identify the vital few from trivial many and provides direction for selecting projects for

improvement.

A Pareto diagram is a histogram of the data from the largest frequency to the smallest.

Pareto diagrams are used to analyze cost of quality data.

Practice Exercise : Pareto Diagram

130

Process Measurement

131

Measurement is the act of quantifying the performance dimensions of products,services, processes and other business acivities.

Measurement phase involves collecting data for analysis

Measures and indicators refer to the numerical information that results from measurement

Process Metric

132

A metric is a unit of measurement that provides a way to objectively quantify a process

Metrics are used to measure data. Metrics can be discrete(countable) or continuous.

Example, dpmo (defects per million opportunities) is used to measure six sigma

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Identifying and selecting process metrics

133

Example of a Pizza Ordering and filing process for home delivery

Dashboards and Scorecards

134

Dashboards and scorecards provide a consistent source of

information for tracking progress.

Data collection

135

Data can be collected by data sheets or check sheets.

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