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Transcript of Six Sigma and Project Management 041205 · 1/6/2007 · Analyze capabilities against CTQ's ......
Six Sigma and Project Six Sigma and Project ManagementManagement
Ken KnokeKen KnokePMPPMP
Black BeltBlack BeltApril 12, 2005April 12, 2005
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
What We Will Cover TodayWhat We Will Cover Today
σσ What is Six Sigma?What is Six Sigma?
σσ How is Six Sigma similar to project How is Six Sigma similar to project management?management?
σσ What is a Six Sigma project like?What is a Six Sigma project like?
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
What is Six Sigma?What is Six Sigma?
σσ A Symbol A Symbol σσ A MetricA Metricσσ A BenchmarkA Benchmarkσσ A ToolA Toolσσ A VisionA Vision
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
What Does Six Sigma RepresentWhat Does Six Sigma Represent
Elimination of variation in a process so that it is 99.9997% Elimination of variation in a process so that it is 99.9997% defect freedefect free
+ or – 1 Std
Or – 3.4 defects per million
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Is Six Sigma Achievable?Is Six Sigma Achievable?
If the world operated at a If the world operated at a four sigmafour sigma level level (99.904%)(99.904%)
σσ Unsafe drinking water for one hour Unsafe drinking water for one hour each montheach month
σσ 5,000 babies given to the wrong 5,000 babies given to the wrong parents each yearparents each year
σσ 500 airline crashes per month500 airline crashes per month
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
What is the six sigma process?What is the six sigma process?σσ Identify a problemIdentify a problemσσ Form a teamForm a teamσσ Gather data about the extent of the problemGather data about the extent of the problemσσ Determine possible causesDetermine possible causesσσ Statistically test the possible causes to see if Statistically test the possible causes to see if
they are validthey are validσσ Devise solutions to the statistically valid causesDevise solutions to the statistically valid causesσσ Implement the solutionsImplement the solutionsσσ Monitor the solutions to ensure that they have Monitor the solutions to ensure that they have
fixed the problemfixed the problem
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Six Sigma Project RequirementsSix Sigma Project Requirements
σσ Team commitmentTeam commitmentσσ Four to six months durationFour to six months durationσσ 20% to 30% of each team member20% to 30% of each team member’’s times time
σσ Available DataAvailable Dataσσ To calculate size of problemTo calculate size of problemσσ To measure potential causesTo measure potential causes
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Six Sigma vs. Project Management Six Sigma vs. Project Management
σσ Six Sigma activities are projectsSix Sigma activities are projects
σσ ToolsTools
σσ CertificationCertification
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Six Sigma as a ProjectSix Sigma as a Project
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Six Sigma vs. Project Management Six Sigma vs. Project Management
Six Sigma Activities Are ProjectsSix Sigma Activities Are Projects
“All improvement takes place project by project . . .and in no other way.”
Dr. Joseph M. Juran
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Six Sigma vs. Project Management Six Sigma vs. Project Management
Six Sigma Activities Are ProjectsSix Sigma Activities Are Projects
“A temporary endeavor undertaken to create a unique product or service.”
PMBOK
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Six Sigma vs. Project Management Six Sigma vs. Project Management
Project Management PhasesProject Management Phases
σσ InitiateInitiateσσ PlanPlanσσ ExecuteExecuteσσ ControlControlσσ CloseClose
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Six Sigma vs. Project Management Six Sigma vs. Project Management
Six Sigma Phases Six Sigma Phases -- TransactionalTransactional
σσ DefineDefineσσ MeasureMeasureσσ AnalyzeAnalyzeσσ ImproveImproveσσ ControlControl
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Six Sigma vs. Project Management Six Sigma vs. Project Management
Six Sigma Phases Six Sigma Phases -- DesignDesign
σσ DefineDefineσσ MeasureMeasureσσ AnalyzeAnalyzeσσ DesignDesignσσ VerifyVerify
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Six Sigma vs. Project Management Six Sigma vs. Project Management
Common ToolsCommon Tools
σσ Project CharterProject Charterσσ Gantt Charts/Milestone ChartsGantt Charts/Milestone Chartsσσ Pay Off Matrix/Probability Pay Off Matrix/Probability –– Impact MatrixImpact Matrixσσ FMEA/Risk Response PlanFMEA/Risk Response Planσσ Control ChartsControl Chartsσσ Pareto DiagramsPareto Diagramsσσ Process MapsProcess Mapsσσ Cause and Effect DiagramsCause and Effect Diagrams
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Tools Tools –– Project CharterProject Charter
DMADV Project Charter Resource Plan General Information Review Timing
Project Overview
Problem Statement: The creation of the Builder Cabinet Group has brought together two companies with different ERP systems. Adrian uses JDEdwards for sales order processing, purchasing, accounts payable, accounts receivable and the general ledger. Adrian’s manufacturing systems have all been developed internally. Duncanville uses the Friedman package for all processes except for the general ledger. They are currently transitioning their general ledger, accounts payable and accounts receivable to JDEdwards. These disparate systems make it difficult, if not impossible, for the Builder Cabinet Group to provide their customers with a consistent approach to ordering, invoicing, etc. The different systems also add inaccuracies to analyses of costs, inventories, etc. In addition, the separate manufacturing systems make it difficult to roll out process changes to all BCG facilities and to easily move resources between facilities.
Goal Statement: Review the JDEdwards and Friedman ERP systems and make a decision of which one best meets the needs of the Builder Cabinet Group. Determine if standardizing on either system is preferable to leaving the current ERP system structure in place. Develop a high level implementation resource and timing estimate for the implementation. Develop an estimate of the financial benefits to the BCG of having an integrated ERP solution. In Scope:
• Order Entry • Manufacturing • Purchasing • Inventory Management • Configuration • Determining expected financial benefits of the BCG being one system • Determining high level implementation costs and timing • Choices: Selecting JDEdwards, selecting Friedman or not standardizing • Accounts Receivable • Accounts Payable • Billing • Quoting
Out of Scope:
• General Ledger (Assume will stay on JDE)
Project No.: Project Name: BCG ERP Selection Leader: Bob Winterhalter Instructor: TBD Champion: Keith Allman Team Members (Key): Ken Knoke, Bob Winterhalter, CB Roe, Mary Hojnacki, Heather Price, Jennifer Miller, Mike Petrie Jr., Cark Previte, Clay Smith, Bill Harke, Tammie Floyd, Kasey Harris
Business Unit: All BCG
Business Objectives: Determine the ERP system that best fits the needs of the Builder Cabinet Group
Project CTQ: Current Process Capability: Multiple systems, little integration, many ways of interacting with customers
Start: 4/01/08
D 4/15/05
M 5/16/05
A 7/03/05
D 8/24/04
V 9/24/04
Finish: 9/24/04
Six Sigma Charter Six Sigma Charter
σ Business Need
σ Product Description
σ Scope
σ Team Members
σ Milestone Dates
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Tools Tools –– Gantt/Milestone ChartsGantt/Milestone Charts
For Six SigmaFor Six Sigma
σ More high level
σ Based on estimates
σ Drives milestones not individual daily activities
Task Start End Status 1 8 15 22 29 6 13 20 27 3 10 17 24 1 8 15 22 29 5 12 19 26 2 9 16 23 30Define 30-Mar 22-AprKick Off Meeting 30-Mar 30-Mar CompleteFinalize Charter 15-Apr 15-AprClass (Define/Measure) 13-Apr 15-AprDevelop Plan 18-Apr 22-AprDevelop Risks 18-Apr 22-AprMeasure 25-Apr 3-JunIdentify customersPrioritize customersDetermine how to gather customer needsGather customer needsTurn needs into CTQ'sDeveleop design score cardDetermine financial benefits of standardizationAnalyze 6-Jun 15-JulClass 8-Jun 10-JunMeet with VendorsReview vendor cababiitiesAnalyze capabilities against CTQ'sDesign 18-Jul 12-AugClass 20-Jul 22-JulSelect recommended vendorDetailed functional specificationSelect items to be testedDetail vendor reviewVerify 15-Aug 23-SepClassFinalize selectionAnalyze capabilities against CTQ'sDetermine implementation costsFinal report and presentation 23-Sep
April SeptemberAugustJulyMay June
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Tools Tools –– Payoff MatrixPayoff MatrixFor Six SigmaFor Six Sigma
σσ Helps to Helps to determine determine which which solutions to solutions to pursuepursue
High Pursue Rescope High Standard Work ScanningLow Eliminate Eliminate Low
Low High Low High
Benefit
Effort
Shortage ProjectEvaluation Rules
Benefit
Effort
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Tools Tools –– FMEA/Risk Response PlanFMEA/Risk Response Plan
σσ Identifies risksIdentifies risksσσ Assigns probability and impactAssigns probability and impact
Item Name: FMEA Team:Prepared by: Jim Lind, Steve Reppen, Pat Gaunt, Carmen Bernabie
Accounts Receivable Jim Lind, Steve Reppen, Pat Gaunt, Carmen Bernabie FMEA Date (Orig): May 30, 2004 (Rev.): 11/15/2004
Process Step Key Process Input Potential Failure Mode Potential Failure Effects
SEV
Potential CausesOCC
Current Process ControlsDET
RPN
Actions Recommended Resp.& Target Date Actions Taken
SEV
OCC
DET
RPN
What is the process step?
What are the Key Process Inputs?
(KPIV's)
In what ways can Key Inputs go wrong? (Process fail to meet requirements)
What is the impact on the Key Output Variables (customer requirements) or internal requirements?
How
Sev
ere
is e
ffect
to
the
cust
omer
? What causes the Key Input to go wrong? (How could the failure mode occur?)
How
freq
uent
is
caus
e lik
ely
to
Occ
ur? What are the existing controls that
either prevent the failure mode from occurring or detect it should it occur?
How
pro
babl
e is
D
etec
tion
of c
ause
?
Ris
k P
riorit
y #
to
rank
ord
er c
once
rns What are the actions for
reducing the Occurrence of the cause, or improving Detection? Should have actions on high RPN's or Severity of 9 or 10.
Who's Responsible for the recommended action? What date?
What were the actions implemented? Include completion month/year. (Then recalculate resulting RPN.)
CFS rep. will monitor accounts at least weekly to determine risk and appropriate course of action if needed.
SOP for the CFS rep., reporting plan and follow-up by supervision.
CFS rep. does not monitor accounts on a timely basis, no SOP in place to set time frames for notification.
Money is not collected on a timely basis, effecting cash flow and profitability.
8 Lack of training, performance expectations not set, no regular reporting system and lack of follow-up by supervision.
8 Data warehouse account receivables reports. These are not generated automatically but need to be requested by user. Weekly conference call with sales to discuss top ten delinquent accounts.
8 512
All invoices are deemed past due after 30 days, even when different terms are specified in the contract
SOP for the CFS rep., reporting plan and follow-up by supervision.
Customers are contacted even when not past due according to contract terms
Customer satisfaction is lowered. Unnecessary time and effort by CFS rep. is spent following up on amounts not past due.
8 This policy has not been reviewed on a regular basis to update to reflect the current customer base
8 None 8 512
No difference in the current process for channels of distribution or project type to reflect different contract terms
SOP for the CFS rep., reporting plan and follow-up by supervision.
Contract terms vary to type of project and customer.
Customer satisfaction is lowered. Unnecessary time and effort by CFS rep. is spent following up on amounts not past due.
8 This policy has not been reviewed on a regular basis to update to reflect the current customer base
8 None 7 448
Entering PO dollar information accurately.
Accurate Invoices
Incorrect invoice entered into system.
Customer will not pay inaccurate invoices on a timely basis.
8 Lack of training, performance expectations not set, no regular reporting system and lack of follow-up by supervision.
8 None 8 512
Frequency of customer contact
SOP for the CFS rep., reporting plan and follow-up by supervision.
No current standard work or SOP to specify standards for frequency of customer contact
Money is not collected on a timely basis, effecting cash flow and profitability.
8 Lack of training, performance expectations not set, no regular reporting system and lack of follow-up by supervision.
8 No regular reporting and follow-up system established.
9 576
PROCESS FMEA(Potential Failure Modes and Effects Analysis)
σσ Shows mitigationShows mitigation
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Tools Tools –– Control ChartControl ChartFor Six SigmaFor Six Sigma
σσ Used to Used to monitor if a monitor if a process is in process is in controlcontrol
σσ Used to view Used to view the impact of the impact of process process changeschanges
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Tools Tools –– Pareto ChartPareto ChartFor Six SigmaFor Six Sigma
σ Used to identify the critical few problem areas
Others
LATE OR DER CH ANGE
KEYED INCORRECTLY
Key ing ERROR
PAC KAGING ERROR
ASSUMED ON TRUCK
HASHMARK ERROR
5 3 3 5 84581 3.3 2.0 2.0 3.3 5.330.054.0
100.0 96.7 94.7 92.7 89.3 84.0 54.0
150
100
50
0
100
80
60
40
20
0
DefectCount
PercentCum %
Perc
ent
Cou
nt
Pareto Chart for Shortage Reason
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Tools Tools –– Process MapsProcess MapsFor Six SigmaFor Six Sigma
σσ Used to identify Used to identify process stepsprocess steps
σσ Help in Help in determining determining where problems where problems may occurmay occur
SORT PAPERTO APPROPRIATEAREAS
SORT ACCESS. PAPER
pick parts listby dock/ack#
line 1 pick parts
stage parts on cart
line 2 pick parts
stage parts on cart
check off clamp listing
check off clamp listing
pick parts and build by Ack.#
Built parts listing in Accessories
stage on cart/move to Access.
package in Accessories
check off clamp listing
molding pick list by Ack# and dock
pick line 1 molding
pick line 2 molding
pick by Ack.# in reverse order
pick by Ack.# in reverse order
stage on cart in rev. ack. #
stage on cart in rev. ack.#
check off clamp listing
check off clamp listing
PB Lam. & TKC pick list
pick line 1 PB/TKC
pick line 2 PB/TKC
pick by ack.# in reverse order
pick by ack.# in reverse order
stage on cart in rev. ack.#
stage on cart in rev. ack.#
check off clamp listing
check off clamp listing
SORT CABINET PAPER
Cab. Clamp list for build by seq.
pick parts & build by ack/seq.
check off BTT220 at truck and load
Talls Clamp list for build by seq.
pick parts & build by ack/seq
stage talls in designated area by dock/ack.#
check off BTT220 at truck and load
Is list the complete?
NO YES Take cart to dock
Check off BTT220 and load
go to fascilitator to verify
is it a stockout?
Yes
NO
audit or repick
Specials clamp list for build
pick parts and build by ack./seq.
stage spec.'s in designated area by dock/ack.#
check off BTT220 at truck and load
COMPLETE?
Turn in BTT 220 to shipping clerk to review with marks to signify B/O Cabs or Accessories.
Mark B/O as instructed on list
YES NO
check w/ fasc. Or repair/offline
still missing?
NO
YES
mark BTT220 w/ check off or B/O.
Audit load one more time if possible.
CLOSE LOADS
1
1 11
X6
X1
X1 X1 X1X4X4 X4X4X4
X2
X2X2
X3X3X3
X3
X2
X4
X3
Incorrect hash marking
Items not built in the BTT cells
Items loaded onto the wrong trailer
X8
X8 X8 X8
X7 X7 X7
X7
X8
X1
X5
X6
X8
X7
Poor accessory labeling
Late customer order changes
Keying errors
Items arriving late at the dock
Lack or adequate training
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Tools Tools –– Cause & Effect DiagramCause & Effect Diagram
For Six SigmaFor Six Sigma
σ Determines potential causes of problems
Materials PeopleLoader Mistake
Check Off Wrong Item
Ignore Ack No. Material arrives early
Label mis readParts Arrive Late Wrong items on cart
Work Center behind schedule Trailer moved Loaded on Wrong Trailer
Label too smallHire the Wrong People Many trailers to same cust.
HurryInventory error Don't care
Mis reads labelDelayed trucking No customer focus
Bad minimums Not detailed oriented Hash & set on dock Hash in anticipation of receiving product
Components Late Don't Check all lines for the Ack Does not hash mark when loadingHit F5 by mistake
Wrong accessories on cart Keying Mistake Ineffetive trainingPoorly Trained Team
Qty on Wrong Line No follow upSimilar Descriptions High turnover
Employee additude
Cabinets Shorages to Customers
Unclear/Incorrect hash marksFeeder work center late Bad data base
Given to wrong work centerLoaders Hurry Hash Marking Wrong Size Trailer
Picker errorTruck Over Cubed
Manpower shortages MiscountLost Labels Misread when keyed Different sized trailers
Poor Lighting Not printed Don't notify plant
Don\'t notify production
Small/hard to readCSR Error Late Customer Add Ons
Don't show qtyCustomer request
Accessory Labels Hand offs/silos
Sequencing
Items Not Built in BTT CellsEnvironment Methods Equipment
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
CertificationCertification
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Juran Institute Juran Institute Green BeltGreen BeltCertification RequirementsCertification Requirements
σσ 64 hours of classroom training64 hours of classroom trainingσσ Pass 2.5 hour written examPass 2.5 hour written examσσ Successfully complete a 4 month projectSuccessfully complete a 4 month projectσσ Pass 1.5 hour oral defense of projectPass 1.5 hour oral defense of projectσσ Submit Submit ““stand alonestand alone”” project book (100+ pages)project book (100+ pages)
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Juran Institute Juran Institute Black BeltBlack BeltCertification RequirementsCertification Requirements
σσ Must be a Green BeltMust be a Green Beltσσ Additional Black Belt requirementsAdditional Black Belt requirements
σσ Additional 64 hours of classroom trainingAdditional 64 hours of classroom trainingσσ Pass another 2.5 hour written examPass another 2.5 hour written examσσ Successfully complete another 4 month projectSuccessfully complete another 4 month projectσσ Pass 1.5 hour oral defense of that projectPass 1.5 hour oral defense of that projectσσ Submit Submit ““stand alonestand alone”” project book (100+ pages)project book (100+ pages)
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Masco BCG Masco BCG Black BeltBlack BeltRecertification RequirementsRecertification Requirements
σσ Successfully lead and complete a 4 month Successfully lead and complete a 4 month project with at least $100,000 per year in project with at least $100,000 per year in savings (or strategic equivalent)savings (or strategic equivalent)
σσ Pass 1.5 hour oral defense of projectPass 1.5 hour oral defense of projectσσ Submit Submit ““stand alonestand alone”” project book (100+ pages)project book (100+ pages)σσ Act as advisor on at least two other projects Act as advisor on at least two other projects
during the yearduring the year
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Six Sigma ProjectsSix Sigma Projects
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
The Six Sigma Process The Six Sigma Process –– Project Project SelectionSelection
σ A project is defined as a problem scheduled for a solution.
σ Projects are launched in waves lasting 4 to 5 months. Typically 6 – 10 projects will be launched in each wave. Projects are focused and specific!
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Selection CriteriaSelection Criteria
σσ MBP action itemMBP action itemσσ Customer focusedCustomer focusedσσ SpecificSpecificσσ MeasurableMeasurableσσ SupportedSupportedσσ Realistic (timing)Realistic (timing)σσ Cost reduction opportunityCost reduction opportunityσσ Ease of data collectionEase of data collection
The Six Sigma Process The Six Sigma Process ––Project SelectionProject Selection
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
The Six Sigma Process The Six Sigma Process –– People People SelectionSelection
σ People are selected based on:σ Knowledge of the problemσ Ability to manage projectsσ Capability to utilize Six Sigma tools
σ Process works best with “ownership”σ Juran Institute serves as Master Black
Belt
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Team MakeupTeam Makeup
One Black Belt assists multiple teamsOne Black Belt assists multiple teamsGreen Belt team leaderGreen Belt team leader33--4 other team members 4 other team members
(may or may not be Green Belts)(may or may not be Green Belts)
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Six Sigma – Summary (as of 3/05)Six Sigma Six Sigma –– Summary (as of 3/05)Summary (as of 3/05)
Complete In Process TotalGreen belts 111 59 170
Black belts 13 15 28
Projects 47 19 66
Savings $4.6 million TBD
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Masco BCG Six SigmaMasco BCG Six Sigmaσσ 10 Waves of Projects Completed10 Waves of Projects Completed
σσ Six Green Belt business process (transactional)Six Green Belt business process (transactional)σσ One Black BeltOne Black Beltσσ Two Green Belt manufacturingTwo Green Belt manufacturingσσ One Green Belt DFSSOne Green Belt DFSS
σσ Division President, 7 Vice Presidents, and 43 Division President, 7 Vice Presidents, and 43 Directors / Senior Managers certified!Directors / Senior Managers certified!
σσ 6 Additional Waves Scheduled for 20056 Additional Waves Scheduled for 2005σσ Three Green Belt business process (transactional)Three Green Belt business process (transactional)σσ One Black BeltOne Black Beltσσ One Green Belt DFSSOne Green Belt DFSSσσ One Orange Belt (manufacturing)One Orange Belt (manufacturing)
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Six Sigma Transactional Six Sigma Transactional ProjectsProjects
σσ Damaged doors Damaged doors --FedExFedEx
σσ Sequenced trucksSequenced trucksσσ CSR keying errorsCSR keying errorsσσ Customer Service Customer Service
order preparationorder preparationσσ Expedite order entryExpedite order entryσσ Contract executionContract executionσσ Invoice accuracyInvoice accuracy
σσ Credit memo touch Credit memo touch time reductiontime reduction
σσ Shipping shortagesShipping shortagesσσ Installer payroll Installer payroll
accuracyaccuracyσσ Spec book accuracySpec book accuracyσσ Hiring processHiring processσσ Inventory accuracyInventory accuracyσσ Cabinet damage to Cabinet damage to
western customerswestern customers
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MerillatMerillatSix Sigma Improvement ProcessSix Sigma Improvement Process
Project Name: Reduce Shortages to CustomersProject Number: 2003-2
Green Belt Project Leader: Ken Knoke
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DefineMeasureAnalyzeImproveControl
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Project MissionProject MissionProblem Statement:
Merillat customers regularly state they do not receive products (cabinets and accessories) that we report we ship. The overall shortages reported for 2002 averaged 1,300 pieces per month. Itis assumed one-half of these shortages occur during multi-stop shipments. The estimate of the internally caused shortages is 650 pieces per month.Objective(s):
Reduce internally created shortages on customer shipments by 325 pieces per month.
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Project ScopeProject ScopeIn Scope:
Shortages of all products (cabinets and accessories), all customers that receive direct shipments, all plantsThe process starts when the products arrive at the dock door. The process ends when the packing list is printed and put on the truck.
Out of Scope:
Masterpiece, outside purchases delivered directly from supplier (i.e. Larson and similar product), shipments from our service centers, and shipments from our plants that are multi stop loads.
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Project TeamProject TeamChampion: Ken Knoke
Green Belt Project Leader: Ken Knoke
Green Belt Team Members: Brett BoschmaMike GarwoodKeith DozierErle Dordal
Other Team Members: None
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Project Justification & Expected Project Justification & Expected ResultsResults
COPQ: $22,100/Month
Expected COPQ Savings: $ 5,525/Month
Operational/Strategic Impact:
Shortages are a major cost and inconvenience to our customers. They cause the customer to reschedule installations and/or make several trips to the site of installation.
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Financial Impact: COPQ Financial Impact: COPQ CalculationCalculation
Average cost of freight per no charge order = $ 1/PieceCalculated by Ken Knoke
Average product cost of no charge order = $ 16/pieceCalculated by Ken Knoke
Average number of pieces per no charge order = 1.5 PiecesCalculated by Ken Knoke
Average no charge pieces per month due to shortages = 1,300 PiecesCalculated by Ken Knoke
Cost of a customer shortage to Merillat is:
$16 Material/Piece +$1 Freight/Piece = $17/Piece
$17/Piece * 1,300 Pieces/Month = $22,100/Month
Due to Customer Shortages
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Financial Impact: Shortages per Financial Impact: Shortages per MonthMonth
1. Shipping shortage as reported into the system were found to be unreliable (see slides 18 – 19)
2. We had no reliable historical measurement of shortage rate so we needed to develop an estimate.
3. Each plant selected one or more in scope customers to provide manual feedback of shortages. They reported an average shortage rate of .165%.
4. Merillat Shipped 790,000 pieces per month in 2002
5. 790,000 pieces shipped per month times .165% shortages equals
1,300 shipping shortages per month
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
High Level Process Map (SIPOC)High Level Process Map (SIPOC)SUPPLIER INPUT PROCESS OUTPUT CUSTOMER
• Computer room• Traffic Department
• BTT Production Cell• Accessories
Department• Custom Shop
• Truck Loaders
• Computer room
• Truck Loader
• Daily Shipping Schedule
• Picked components
• Packaged cabinets and accessories
• Hash Marked Load Sheet
• Packing List
• Carts of picked components
• Packaged cabinets and accessories
• Items loaded on the truck
• Hash marked load sheet
• Computer printed packing list
• Completed truck with packing list
• Parts pullers
• Truck loaders
• Computer room
• Truck Loader
• Receiving Crew at Ship to Location (ie Distributors, Dealers, Builders, Service Centers, etc.)
• BTT Paperwork Correct
• Items put on correct truck
• Load sheet marked correctly
• Shipments keyed correctly
• Customer Receives Product on Packing List
Receive LoadPaperwork
Produce Product
Load Product
Key Shipments into Computer
Process Paperwork and
Put on Truck
CTQCRITICAL TO QUALITY
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Operational Definitions of Key Operational Definitions of Key TermsTerms
Accessory An accessory is a finished goods end item. It is generally a trim item (moldings, fillers, valances, end panels, etc.) or an item that can be added to the kitchen to enhance its functionality (appliance garages, cutting boards, knife dividers, etc.). Generally, an accessory is not assembled or packaged in the manufacturing cells that are located immediately behind the truck.
Assembly Plant An assembly plant is a Merillat facility that manufactures and ships cabinets and accessories to our customers. Shipments from assembly plants to our customers are in scope for this project.
Cabinet A cabinet is the basic component of a kitchen. It can be mounted on the floor (B12L, B24, BBC36/39, etc.) or on the wall (W1230, W2430 W4830, etc.) Generally, a cabinet is assembled and packaged in the manufacturing cells that are located immediately behind the truck.
COPQ The cost of not doing things correctly the first time.
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Operational Definitions of Key Operational Definitions of Key TermsTerms
Direct Shipment A direct shipment is a shipment from one of Merillat’s assembly plants that goes to a customer’s site without stopping to unload other customers’products at their sites. Direct shipments are inside the scope of this project.
Masterpiece Masterpiece is a product line that is produced by our sister company KraftMaid. This product is shipped from KraftMaid to Merillat customers with no involvement by Merillat personnel. Masterpiece shipments are out of scope for this project.
Multi-Stop Load A multi-stop load is a shipment that makes several stops to unload product at several locations and /or several customers. Multi-stop loads that are not unloaded by Merillat personnel are out of scope for this project.
Packing List A packing list is a computer generated document that is created after loading of the truck is complete. The packing list is placed in the trailer before the shipment leaves. The customer uses this document to indicate what should be on the truck. A discrepancy between the packing list and what the customer actually receives defines what a shortage is.
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Operational Definitions of Key Operational Definitions of Key TermsTerms
Service Center A service center is a Merillat facility that coordinates deliveries and installations of kitchens at our builder customers. The service center may occasionally serve as a cross docker in this process. Shipments from service centers are out of scope for this project.
Shipment A shipment is a trailer load, or partial trailer, of cabinets and accessories that is sent to a customer.
Shortage A shortage is an item that Merillat tells the customer that was shipped but the customer does not receive.
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
DefineMeasureAnalyzeImproveControl
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Project Y (or Ys) in Y = f (x)Project Y (or Ys) in Y = f (x)
Y (or Y's) =
= Pieces (cabinets and accessories) of product not shipped to customers which are reported as shipped
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Detailed Process MapDetailed Process MapSORT PAPERTO APPROPRIATEAREAS
SORT ACCESS. PAPER
pick parts listby dock/ack#
line 1 pick parts
stage parts on cart
line 2 pick parts
stage parts on cart
check off clamp listing
check off clamp listing
pick parts and build by Ack.#
Built parts listing in Accessories
stage on cart/move to Access.
package in Accessories
check off clamp listing
molding pick list by Ack# and dock
pick line 1 molding
pick line 2 molding
pick by Ack.# in reverse order
pick by Ack.# in reverse order
stage on cart in rev. ack. #
stage on cart in rev. ack.#
check off clamp listing
check off clamp listing
PB Lam. & TKC pick list
pick line 1 PB/TKC
pick line 2 PB/TKC
pick by ack.# in reverse order
pick by ack.# in reverse order
stage on cart in rev. ack.#
stage on cart in rev. ack.#
check off clamp listing
check off clamp listing
SORT CABINET PAPER
Cab. Clamp list for build by seq.
pick parts & build by ack/seq.
check off BTT220 at truck and load
Talls Clamp list for build by seq.
pick parts & build by ack/seq
stage talls in designated area by dock/ack.#
check off BTT220 at truck and load
Is list the complete?
NO YES Take cart to dock
Check off BTT220 and load
go to facilitator to verify
is it a stock out?
Yes
NO
audit or repick
Specials clamp list for build
pick parts and build by ack./seq.
stage spec.'s in designated area by dock/ack.#
check off BTT220 at truck and load
COMPLETE?
Turn in BTT 220 to shipping clerk to review with marks to signify B/O Cabs or Accessories.
Mark B/O as instructed on list
YES NO
check w/ fasc. Or repair/offline
still missing?
NO
YES
mark BTT220 w/ check off or B/O.
Audit load one more time if possible.
CLOSE LOADS
1
1 11
X6
X1
X1 X1 X1X4X4 X4X4X4
X2
X2X2
X3X3X3
X3
X2
X4
X3
Incorrect hash marking
Items not built in the BTT cells
Items loaded onto the wrong trailer
X8
X8 X8 X8
X7 X7 X7
X7
X8
X1
X5
X6
X8
X7
Poor accessory labeling
Late customer order changes
Keying errors
Items arriving late at the dock
Lack or adequate training
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Pictures of the ProcessPictures of the Process
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Pictures of the ProcessPictures of the Process
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Plan for Data CollectionPlan for Data CollectionQuestions to be answered:
•What is the level of customer shortages?
•Does the type of product impact the number of shortages?
•Is there a difference in the shortages by reporting method?
All shortagesAll shortagesAll orders at all All orders at all plantsplants
SystemSystemNo charge orders with a reason code of No charge orders with a reason code of ““shortageshortage””
System reports of System reports of shortagesshortages
All ShortagesAll ShortagesLas VegasLas VegasJim ZehJim ZehA monthly report of shortages by the A monthly report of shortages by the Service CentersService Centers
QAC ReportQAC Report
All shortagesAll shortagesChicago MarketChicago MarketSteve WittigSteve WittigA monthly report of shortages reported A monthly report of shortages reported in the Chicago marketin the Chicago market
Chicago ReportChicago Report
All shortagesAll shortagesVarious sitesVarious sitesBrett BoschmaBrett BoschmaA report of shortages reported by A report of shortages reported by selected customers of Ocalaselected customers of Ocala
Ocala shortage Ocala shortage reportreport
All shortagesAll shortagesReicoReicoKeith DozierKeith DozierA monthly report of shortages reported A monthly report of shortages reported by Reico to Culpeperby Reico to Culpeper
Reico shortage Reico shortage reportreport
All shortagesAll shortagesKSIKSIMike GarwoodMike GarwoodA monthly report of shortages reported A monthly report of shortages reported by KSI to Adrianby KSI to Adrian
KSI shortage KSI shortage reportreport
Small random Small random teststests
Various sitesVarious sitesRick Rick WohlgamuthWohlgamuth
Random receiving audits conducted at Random receiving audits conducted at selected customer sites.selected customer sites.
Rick Wohlgamuth Rick Wohlgamuth truck auditstruck audits
QuantityQuantityWhereWhereWhoWhoDefinitionDefinitionMeasureMeasure
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Validate Measurement SystemValidate Measurement System1. Perform a Box Plot analysis to determine if the manual samples are
significantly different than system reporting
The fact that there is no overlap indicates that the manually reThe fact that there is no overlap indicates that the manually reported shortages ported shortages are significantly different than the system reported shortages.are significantly different than the system reported shortages.
Manual Value System Value
0.15
0.20
0.25
0.30
Per
cent
Sho
rt
0.165
0.295
Box Plot of Manual Shortage Reports vs. System Shipping ReportsBased on November Reports
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Validate Measurement SystemValidate Measurement System2. Perform a Test of Two Proportions
Ho = There is no difference between manual reporting and system reportingHa = There is a difference between manual reporting and system reporting
The fact that PThe fact that P--Value is equal to 0 indicates that we should reject the Null HypValue is equal to 0 indicates that we should reject the Null HypothesisothesisThere is a difference between manual reporting and system reportThere is a difference between manual reporting and system reporting!ing!
Test and CI for Two ProportionsTest and CI for Two Proportions
SampleSample X X N N Sample pSample p1 Manually Reported Data 207656 208013 0.998284 1 Manually Reported Data 207656 208013 0.998284 2 System Reported Data 207437 208013 0.9972312 System Reported Data 207437 208013 0.997231
N = Number of Pieces ShippedN = Number of Pieces ShippedX= Number of Pieces Reported Not to Be ShortX= Number of Pieces Reported Not to Be Short
Estimate for p(1) Estimate for p(1) -- p(2): 0.00105282p(2): 0.0010528295% CI for p(1) 95% CI for p(1) -- p(2): (0.000765354, 0.00134028)p(2): (0.000765354, 0.00134028)Test for p(1) Test for p(1) -- p(2) = 0 (vs not = 0): Z = 7.18p(2) = 0 (vs not = 0): Z = 7.18 PP--Value = 0.000Value = 0.000
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Measure Baseline PerformanceMeasure Baseline Performance
CURRENT
COPQ: $22,100/Month
Pieces Short/Month: 1,300
PPM: 1,600
Sigma Level: 4.5
GOAL
COPQ: $16,575/Month
Pieces Short/Month: 975
PPM: 1,200
Sigma Levels: 4.6
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Pareto Diagram Pareto Diagram –– All ShortagesAll Shortages
Others
Replac ement
Accessory
Cabinet
1 32 64111 0.515.430.853.4
100.0 99.5 84.1 53.4
200
100
0
100
80
60
40
20
0
DefectCount
PercentCum %
Per
cent
Cou
ntShortage Categories
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
CauseCause--Effect Diagram Effect Diagram Materials People
Loader Mistake
Check Off Wrong Item
Ignore Ack No. Material arrives early
Label mis readParts Arrive Late Wrong items on cart
Work Center behind schedule Trailer moved Loaded on Wrong Trailer
Label too smallHire the Wrong People Many trailers to same cust.
HurryInventory error Don't care
Mis reads labelDelayed trucking No customer focus
Bad minimums Not detailed oriented Hash & set on dock Hash in anticipation of receiving product
Components Late Don't Check all lines for the Ack Does not hash mark when loadingHit F5 by mistake
Wrong accessories on cart Keying Mistake Ineffetive trainingPoorly Trained Team
Qty on Wrong Line No follow upSimilar Descriptions High turnover
Employee additude
Cabinets Shorages to Customers
Unclear/Incorrect hash marksFeeder work center late Bad data base
Given to wrong work centerLoaders Hurry Hash Marking Wrong Size Trailer
Picker errorTruck Over Cubed
Manpower shortages MiscountLost Labels Misread when keyed Different sized trailers
Poor Lighting Not printed Don't notify plant
Don\'t notify production
Small/hard to readCSR Error Late Customer Add Ons
Don't show qtyCustomer request
Accessory Labels Hand offs/silos
Sequencing
Items Not Built in BTT CellsEnvironment Methods Equipment
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
X1: Incorrect Hash marking is a major cause of shortages
X2: Items not built in the BTT cell are more likely to be short
X3: Items are being loaded on the wrong trailer
X4: Accessory labeling will cause shortages
X5: Late customer order changes will cause shortages
X6: Keying errors when closing loads will cause shortages
X7: Items that are late arriving at the dock will cause shortages
X8: Lack of training of loading personnel will cause shortages
After the data gathering process began, we realized that we had not taken our C-E diagrams to a detailed enough level for effective data analysis. Consequently, we performed a new Pareto analysis and C-E diagrams to develop more precise X’s.
Potential XPotential X’’s s ––Possible TheoriesPossible Theories
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Pareto Diagram Pareto Diagram –– By ReasonBy Reason
Others
LATE OR DER CH ANGE
KEYED INCORRECTLY
Key ing ERROR
PAC KAGING ERROR
ASSUMED ON TRUCK
HASHMARK ERROR
5 3 3 5 84581 3.3 2.0 2.0 3.3 5.330.054.0
100.0 96.7 94.7 92.7 89.3 84.0 54.0
150
100
50
0
100
80
60
40
20
0
DefectCount
PercentCum %
Perc
ent
Cou
nt
Pareto Chart for Shortage Reason
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
CauseCause--Effect Diagram Effect Diagram –– Hash Mark Hash Mark ErrorsErrors
Hash Mark Errors
Expertise of Loader
Loader Distraction
Miscounts
Experience of Loader X3
Lack of Training
Not Following Standard Work
No standard work
No follow up
Lunch & Breaks
Hand Offs
Crew Rotation
Shift Change
Loader Attitude Similar
Descriptions
Wrong Count in Box
Large Quantities X5
Line backed up
Turnover
Turnover
Ergonomics
Personal Problems
Illness
Changing Trailers
Improper line balancing
Packaging Error
Loader does not count accessory
Fatigue
Shift X4
No standardized training
low priority
No supervisor
low priority
Count is all that matters
Reduce Injuries
Loads overlap shifts
Time between shifts
Work conditions
Too few doors
Late items
Too busyTrust accy dept count
Similar product
Small print
Loader literacy
Different by cell? X2 Crew rotation
Things that can be measured
Non Cell Cab
Staged X1
Different by Plant? X6
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
CauseCause--Effect Diagram Effect Diagram –– Assume Items Are Assume Items Are on the Truckon the Truck
Assume that items are loaded on the truck
Loader says that he loaded it
Lost label
Inside defective cabinet
In trash can
Distraction
Expertise
Misread label
Too few dock doors
Trailer moved
Waiting on itemsLoaded on wrong truck
Misread labels
Similar numbers
Shift Change
Time between shiftsLoads
not tied to shifts
Multi tasking
People talking to loaders
Breaks
Hurry
Miscounthurry
Small print
Outside cell for repair
Item scrapped-label not turned in
Accidentally fall in
Thought label was duplicate
paperwork sorted wrong
Items loaded in yardNo parts
Support areas behind
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
X1: Is there a difference in shortage rate by type of product?
X2: Is there a difference in shortage rate by cell or Supervisor?
X3: Is there a difference in shortage rate by loader experience?
X4: Is there a difference in shortage rate by shift?
X5: Is there a difference in shortage rate by lines with an order quantity greater than 1.
X6: Is there a difference in shortage rate by plant?
Potential XPotential X’’s s ----Theories to be Theories to be TestedTested
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
DefineMeasureAnalyzeImproveControl
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
X1: Is there a difference in shortage rate by type of product?
X2: Is there a difference in shortage rate by cell or Supervisor?
X3: Is there a difference in shortage rate by loader experience?
X4: Is there a difference in shortage rate by shift?
X5: Is there a difference in shortage rate by lines with an orderquantity greater than 1.
X6: Is there a difference in shortage rate by plant?
Potential XPotential X’’s s ----Theories to be Theories to be TestedTested
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Data Collection Plan for Shipping Data Collection Plan for Shipping ShortagesShortages
H0 HADescription/Data Type
Sample Size, Number of Samples
Where To Collect Data
Who Will Collect Data
How Will Data Be
RecordedRemarks
1 The shortage problem is systematic throughout the entire loading/shipping process
Is there a difference in shortage rate by type of product?
Shortage rate is independent of type of product.
Shortage rate is not independent of type of product.
Chi-Square Y = DiscreteX = Discrete
Selected customers by plant for approximately 1500 cabinets shipped per plant.
Completed load sheets
Six sigma team members
Shipping shortage spread sheet
2 Is there a difference in shortage rate by Supervisor of the cell that shipped the product?
Shortage rate is independent of Supervisor.
Shortage rate is not independent of Supervisor.
Chi-Square Y = DiscreteX = Discrete
Selected customers by plant for approximately 2-3000 cabinets shipped per plant.
Completed load sheets
Six sigma team members
Shipping shortage spread sheet
3 Is there a difference in shortage rate by loader experience?
Shortage rate is independent of loader experience.
Shortage rate is not independent of loader experience.
Chi-Square Y = DiscreteX = Discrete
Selected customers by plant for approximately 1500 cabinets shipped per plant.
Completed load sheets
Six sigma team members
Shipping shortage spread sheet
4 Is there a difference in shortage rate by shift?
Shortage rate is independent of shift.
Shortage rate is not independent of shift.
Chi-Square Y = DiscreteX = Discrete
Selected customers by plant for approximately 1500 cabinets shipped per plant.
Completed load sheets
Six sigma team members
Shipping shortage spread sheet
5 Is there a difference in shortage rate by items with an order quantity greater than 1?
Shortage rate is independent of lines with quantity greater than 1.
Shortage rate is not independent of lines with quantity greater than 1.
Chi-Square Y = DiscreteX = Discrete
Selected customers by plant for approximately 1500 cabinets shipped per plant.
Completed load sheets
Six sigma team members
Shipping shortage spread sheet
6 Is there a diffeence in shortage rate by plant?
Shortage rate is independent of ship plant.
Shortage rate is not independent of ship plant.
Chi-Square Y = DiscreteX = Discrete
Historical shipment and shortage reports from customers.
Customer shortage reports
Six sigma team members
Shipping shortage spread sheet
Tools To Be Used
Data To Be Collected
Ref.
Theories To Be Tested (Selected From The C-E Diagram, FMECA, and/or FDM)
List Of Questions That Must Be Answered To Test Each Selected Theory
Where Applicable, State The Null and Alternative
Hypotheses
Note: Customers were selected based on the scope of the project – no multi stop loads, shipments from service centers, masterpiece, etc.
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Theory: The shortage problem is systematic throughout the entire loading/shipping process
Ho: Shortage Rate is independent of type of product.
Analysis:
Conclusion: Shortage rate IS independent of Cabinets and Accessories.Shortage rate IS NOT independent of Non Cell Cabinets and Cabinets.Shortage rate IS NOT independent of Non Cell Cabinets and Accessories.
Non Cell Cabinets are more likely to be short than Cabinets and Accessories
Test of Theories XTest of Theories X11
Chi-Square Test: shipped type, short type
Expected counts are printed below observed counts
shipped short ty TotalCAB 20566 57 20623
20568.24 54.76
ACCY 14429 28 1445714418.61 38.39
NON CELL 689 10 699697.14 1.86
Total 35684 95 35779
Chi-Sq = 0.000 + 0.092 +0.007 + 2.810 +0.095 + 35.736 = 38.741
DF = 2, P-Value = 0.0001 cells with expected counts less than 5.0
Chi-Square Test: shipped type_1, short type_1
Expected counts are printed below observed counts
shipped short ty TotalCAB 20566 57 20623
20573.04 49.96
ACCY 14439 28 1446714431.96 35.04
Total 35005 85 35090
Chi-Sq = 0.002 + 0.993 +0.003 + 1.416 = 2.415
DF = 1, P-Value = 0.120
Chi-Square Test: shipped type_1_1, short type_1_1
Expected counts are printed below observed counts
shipped short ty TotalCAB&ACCY 35005 85 35090
34356.55 733.45
NON CELL CAB 689 677 13661337.45 28.55
Total 35694 762 36456
Chi-Sq = 12.239 +573.299 +314.393 +1.5E+04 = 15626.909
DF = 1, P-Value = 0.000
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Theory: The shortage problem is systematic throughout the entire loading/shipping process
Ho: Shortage rate is independent of the Cell that shipped the product.
Analysis:
Conclusion: There is not enough data to make a conclusion.The data will be combined by supervisor. See following slide.
Test of Theories XTest of Theories X22
Chi-Sq = 0.029 + 11.276 +0.000 + 0.019 +0.000 + 0.005 +0.005 + 1.784 +0.005 + 1.843 +0.002 + 0.595 +0.002 + 0.797 +0.001 + 0.551 +0.002 + 0.753 +0.005 + 1.944 +0.002 + 0.635 +0.130 + 50.572 +0.006 + 2.209 +0.002 + 0.717 +0.002 + 0.620 +0.008 + 2.966 +0.002 + 0.653 +0.224 + 86.750 +
0.002 + 0.836 +0.001 + 0.316 +0.021 + 8.272 +0.001 + 0.216 +0.005 + 1.794 +0.000 + 0.111 +0.020 + 7.891 +0.006 + 2.383 +0.001 + 0.494 +0.004 + 1.672 +0.003 + 1.229 +0.004 + 1.418 +0.005 + 1.792 +0.003 + 1.057 +0.004 + 1.394 +0.001 + 0.273 +0.005 + 1.949 +0.000 + 0.034 = 198.329 DF = 35
* WARNING * 11 cells with expected counts less than 1.0
* Chi-Square approximation probably invalid
32 cells with expected counts less than 5.0
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Theory: The shortage problem is systematic throughout the entire loading/shipping process
Ho: Shortage rate is independent of the Supervisor over the cell that shipped the product.
Analysis:
Conclusion: Shortage rate IS NOT independent of Supervisor
Different Supervisors have different shortage rates
Test of Theories XTest of Theories X22
Chi-Square Test: Ship Super_1, Short Super_1Expected counts are printed below observed counts
Ship Sup Short Su Total1 1531 1 1532
1528.04 3.962 1409 1 1410
1406.36 3.643 7384 6 7390
7370.90 19.104 1801 3 1804
1799.34 4.665 6529 16 6545
6528.09 16.916 1801 22 1823
1818.29 4.717 1023 16 1039
1036.32 2.688 467 1 468
466.79 1.219 1782 6 1788
1783.38 4.62
Chi-Sq = 0.006 + 2.211 +0.005 + 1.918 + 0.023 + 8.982 +0.002 + 0.592 +0.000 + 0.049 +0.164 + 63.452 +0.171 + 66.033 +0.000 + 0.036 +0.001 + 0.412 +0.001 + 0.202 +0.000 + 0.044 +0.008 + 2.991 +0.004 + 1.573 = 148.881
DF = 12, P-Value = 0.0008 cells with expected counts less than 5.0
Ship Sup Short Su Total7 1023 16 1039
1036.32 2.688 467 1 468
466.79 1.219 1782 6 1788
1783.38 4.6210 1933 4 1937
1931.99 5.0111 1025 3 1028
1025.34 2.6612 4113 5 4118
4107.36 10.6413 4326 7 4333
4321.80 11.20
Total 35124 91 35215
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Theory: The shortage problem is systematic throughout the entire loading/shipping process
Ho: Shortage rate is independent of loader experience.
Analysis:
Conclusion: Shortage rate IS NOT independent of loader experience.
Loaders with more experience create more shortages thanloaders with less experience.
Test of Theories XTest of Theories X33
Chi-Square Test: shipped loader -1, short loader -1
Expected counts are printed below observed counts
shipped short Total0-6 Months 3702 8 3710
3699.29 10.71
7-12 Months 6090 10 61006082.39 17.61
13-18 Months 5395 15 54105394.38 15.62
19-24 Months 1508 1 15091504.64 4.36
25-30 Months 1455 16 14711466.75 4.25
21-36 Months 1191 6 11971193.54 3.46
Total 19341 56 19397
Chi-Sq = 0.002 + 0.686 +0.010 + 3.289 +0.000 + 0.025 +0.007 + 2.586 +0.094 + 32.527 +0.005 + 1.873 = 41.105
DF = 5, P-Value = 0.000
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Theory: The shortage problem is systematic throughout the entire loading/shipping process
Ho: Shortage rate is independent of shift.
Analysis:
Conclusion: Shortage rate IS independent of shift.
There is no difference in shortage rate by shift.
Chi-Square Test: shipped shift, short shift
Expected counts are printed below observed counts
Shift shipped short Total1 16803 43 16846
16802.69 43.31
2 18891 49 1894018891.31 48.69
Total 35694 92 35786
Chi-Sq = 0.000 + 0.002 +0.000 + 0.002 = 0.004
DF = 1, P-Value = 0.949
Test of Theories XTest of Theories X44
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Theory: The shortage problem is systematic throughout the entire loading/shipping process
Ho: Shortage rate is independent items with an order quantity of greater than 1.
Analysis:
Conclusion: Shortage rate IS NOT independent of items with an orderquantity greater than 1.
Customer order lines with a quantity of 1 are more likely to be short than order lines with quantities greater than 1.
Chi-Square Test: shipped multi, short multi
Expected counts are printed below observed counts
shipped short TotalNo 11927 40 11967
11936.31 30.69
Yes 23859 52 2391123849.69 61.31
Total 35786 92 35878
Chi-Sq = 0.007 + 2.827 +0.004 + 1.415 = 4.252
DF = 1, P-Value = 0.039
Test of Theories XTest of Theories X55
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Theory: The shortage problem is systematic throughout the entire loading/shipping process
Ho: Shortage rate is independent ship plant.
Analysis:
Conclusion: Shortage rate IS independent of ship plant.
Customers have an equal chance of shortages regardless of the plant from which the product was shipped.
Results for: 2003-2 Analyze Phase.MTW
Chi-Square Test: Ship, Short
Expected counts are printed below observed counts
Ship Short Total1 54566 93 54659
54563.11 95.89
2 102492 184 1026761.02E+05 180.14
3 50955 80 5103550945.46 89.54
4 12187 30 1221712195.57 21.43
Total 220200 387 220587
Test of Theories XTest of Theories X66
Chi-Sq = 0.000 + 0.087 +0.000 + 0.083 +0.002 + 1.016 +0.006 + 3.424 = 4.618
DF = 3, P-Value = 0.202
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
X1: Shortage rate is independent of product type.TRUE – There is no difference between Cabinets and
Accessories.FALSE – There is a difference between shortage in Non
Cell Cabinets and the other categories.
X2: Shortage rate is independent of the cell or Supervisor that shipped the product.FALSE
X3: Shortage rate is independent of loader experience.FALSE
X4: Shortage rate is independent of shift.TRUE
X5: Shortage rate is independent of items with an order quantity greater than 1.FALSE
X6: Shortage rate is independent of ship plant.TRUE
Summary of Results
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
DefineMeasureAnalyzeImproveControl
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Improve PhaseImprove PhaseWe selected the following the following vital We selected the following the following vital
few few ““XX’’ss””::σσ Loader ExperienceLoader Experienceσσ SupervisorSupervisorσσ Cabinets not build in the BTT CellsCabinets not build in the BTT CellsReasons:Reasons:σσ Shortages were found to be statisticallyShortages were found to be statistically
not independent of eachnot independent of eachσσ All three pointed to a lack of standardized All three pointed to a lack of standardized
processesprocesses
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Improvement StrategyImprovement StrategyThree of the vital X's stem from a lack of Three of the vital X's stem from a lack of
standardized processesstandardized processes
Supervisor Supervisor Loader ExperienceLoader ExperienceNon Cell CabinetsNon Cell Cabinets
Therefore we must standardize the Therefore we must standardize the process and implement mistake process and implement mistake
proofing where possible.proofing where possible.
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Selection ProcessSelection Process
High Pursue Rescope High Standard Work ScanningLow Eliminate Eliminate Low
Low High Low High
Benefit
Effort
Shortage ProjectEvaluation Rules
Benefit
Effort
σσ Selection Matrix Selection Matrix –– We compared a Kaizen We compared a Kaizen to develop standard work and Poke to develop standard work and Poke ––Yoke to ScanningYoke to Scanning
Scanning Score = 210Scanning Score = 210Kaizen Score = 240 (Higher is better)Kaizen Score = 240 (Higher is better)
σσ Payoff MatrixPayoff Matrix
Weight ScoreWeighted
Score ScoreWeighted
ScoreCost of the Project 10 1 10 3 30Timing Until Implementation 30 1 30 3 90Benefit in Reduced Shortages 30 3 90 2 60Risk of Not Solving the Problem 10 2 20 2 20Mistake Proofing 20 3 60 2 40
Total Score 210 240
Scanning Standard Work
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Solution AlternativesSolution AlternativesPossible ApproachesPossible Approaches
σσ Process MappingProcess Mappingσσ BrainstormingBrainstormingσσ Creative ThinkingCreative Thinkingσσ Bench MarkingBench Marking
We selected the Kaizen process:We selected the Kaizen process:σσ Contains Process Mapping, Brainstorming and Creative ThinkingContains Process Mapping, Brainstorming and Creative Thinkingσσ Similar to Work Out but with more immediate resultsSimilar to Work Out but with more immediate resultsσσ Is the standard method for defining and implementing shop floor Is the standard method for defining and implementing shop floor
changes at Merillatchanges at Merillat
The goal of the Kaizen was to develop and implement Standard The goal of the Kaizen was to develop and implement Standard Work, to perform a 5S on the shipping dock and to create and Work, to perform a 5S on the shipping dock and to create and
implement and implement a Control Planimplement and implement a Control Plan
The Kaizen was held in Adrian on March 12 The Kaizen was held in Adrian on March 12 -- 1414
σ Work OutWork Outσσ FMEAFMEAσσ KaizenKaizen
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Kaizen ResultsKaizen Resultsσσ Standard Work CreatedStandard Work Created
σσ ImprovementsImprovements
Standardized Hash MarkingStandardized Hash MarkingDouble check at carton sealerDouble check at carton sealerKey shipments from load sheetKey shipments from load sheetLoad sheet remains in trailerLoad sheet remains in trailerOut of sequence cabinets set off by carton sealerOut of sequence cabinets set off by carton sealerResponsibilities defined for loader and loader/floaterResponsibilities defined for loader and loader/floater
σσ 55--S Performed on the Shipping DockS Performed on the Shipping Dock
σσ Control Plan CreatedControl Plan Created
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Kaizen ResultsKaizen Resultsσσ Standard Work CreatedStandard Work Created
Process
Plant Name Adrian Department Production loading Tools & Mtl'sTakt Time 60 Part Name PartsCycle Time Safety Equip.
No. Icon1 Check Trailer Prep trailer - clean, sweep & inspect for leaks Prevent injuries and damage to the product2 Place initials on top of front page of load sheet To know who to talk to if an issue arises with the load3 Check Load Sheet (BTT220) Correct trailer and size To determine load plan
Check cubes - size of load4 Determine Accessory loading Load on nose, tail, or KAAT Satisfy the customer5 Put conveyer in trailer Easier to load cabinets6 Arrange tall cabinets Line up talls on side of trailer To make space to load other cabinets
and to sequence them properly7 Load Cabinets & Accessories Product arrives at trailer
Inspect packaging for tears, rips and bad taping To be sure that the product is packaged properlyMatch sequence # to load sheet To make sure we have the right product
in the right orderMatch date & dock to load sheetMark as shipped on load sheet To assure the product was loadedUse the appropriate color pen for you shift To identify the shift it was loaded onIf quantity = 1 then diagonal line thru number Consistency in marking shipmentsIf all not received then circle qty & tally actual Consistency in marking shipmentsIf quantity > 1 then tally marks next to qty Consistency in marking shipments
8 Place load sheet on last item tallied If the load sheet must leave the To know where you left offtrailer, mark the last item tallied with an "X"
9 Place plastic sheets between stops To help customers unload properly10 Handle out of sequence items Place yellow tag on item To let the customer know it is out of sequence
Mark load sheet (see above) To assure the product was loadedFill out 'Out of Sequence Form' To track how many out of sequence items we ship Put on form when missed High light item when received
11 Contact yard man to move trailer Notify 20 cabinets prior to finishing the load To give the yard man time to deliver a new trailerSafety / In-Process Quality Work Element
KEY Ergo Stock Check Walking TOTALSReturn to Start
Loading Process
Approved By:
Work Ldrs Supervs. ManagerDate: Date: Date:
Work ElementsKey points Reason
Safety, Quality, Technique, Cost
Standard Work Sheet
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
σσ Hash marking before standardizationHash marking before standardization
σσ Hash marking standardHash marking standard
Kaizen ResultsKaizen Results
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Kaizen ResultsKaizen Resultsσσ 55--S Performed on the Shipping DockS Performed on the Shipping Dock
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
DefineMeasureAnalyzeImproveControl
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Kaizen ResultsKaizen Resultsσσ Control Plan CreatedControl Plan Created
CONTROL PLAN
CONTROL SUBJECT
SUBJECT GOAL
UNIT OF MEASURE SENSOR FREQUENCY SAMPLE
RECORD OF MEASURE
MEASURED BY
ACTION CRITERIA
ACTION TO TAKE
WHO DECIDES WHO ACTS
RECORD OF ACTION TO BE TAKEN
Marking accuracy of load sheet
1 defect per 1000 items shipped
Defect per 1000 items shipped
Customer feedback on selected customers
Daily 100% of shipments to selected customers
Copy of packing list or BOL's
West production supervisor
Any error Review with loader
West production supervisor
Supervisor of loader
Shipping error log. Post in the "Glass House"
Loader Follows Standard Work
100% compliant
% compliant Standard work audit
One loader a day
Team lead does 11 audits per day across all Standard Work
Standard work audit cards
Team leader Any non compliance
Provide feedback to loader
Standard work. Auditor
Std work auditor, team leader, production manager, std work team
On Standard Work Audit Card and data base
Loader/Floater Follows Standard Work
100% compliant
% compliant Standard work audit
One loader/floater a day
Team lead does 11 audits per day across all Standard Work
Standard work audit cards
Team leader Any non compliance
Provide feedback to loader/floater
Standard work. Auditor
Std work auditor, team leader, production manager, std work team
On Standard Work Audit Card and data base
Accessory Clamp list attached to cart
100% carts have clamp list attached
% carts Loader floater every load 100% of all accessories
Clamp list on cart
Loader floater Any missing paperwork
Retrieve paperwork and report that areas Supervisor
Loader/Floater Supervisor Not needed
Cartoner Hash marking
All items properly marked
% items marked properly
Standard work audit
One cartoner per day
Team lead does 11 audits per day across all Standard Work
Standard work audit cards
Team leader Any non compliance
Provide feedback to cartoner
Standard work. Auditor
Std work auditor, team leader, production manager, std work team
On Standard Work Audit Card and data base
1st page of load sheet filled out
1st page filled out properly on 100% of loads
% of loads Shipping clerk Every load 100% of load sheets
Load sheet Shipping clerk Any error Report to loader floater
Shipping clerk Shipping clerk Not needed
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Kaizen ResultsKaizen Resultsσσ Standard Work CreatedStandard Work Created
Process
Plant Name Adrian Department Production loading Tools & Mtl'sTakt Time 60 Part Name PartsCycle Time Safety Equip.
No. Icon1 Check Trailer Prep trailer - clean, sweep & inspect for leaks Prevent injuries and damage to the product2 Place initials on top of front page of load sheet To know who to talk to if an issue arises with the load3 Check Load Sheet (BTT220) Correct trailer and size To determine load plan
Check cubes - size of load4 Determine Accessory loading Load on nose, tail, or KAAT Satisfy the customer5 Put conveyer in trailer Easier to load cabinets6 Arrange tall cabinets Line up talls on side of trailer To make space to load other cabinets
and to sequence them properly7 Load Cabinets & Accessories Product arrives at trailer
Inspect packaging for tears, rips and bad taping To be sure that the product is packaged properlyMatch sequence # to load sheet To make sure we have the right product
in the right orderMatch date & dock to load sheetMark as shipped on load sheet To assure the product was loadedUse the appropriate color pen for you shift To identify the shift it was loaded onIf quantity = 1 then diagonal line thru number Consistency in marking shipmentsIf all not received then circle qty & tally actual Consistency in marking shipmentsIf quantity > 1 then tally marks next to qty Consistency in marking shipments
8 Place load sheet on last item tallied If the load sheet must leave the To know where you left offtrailer, mark the last item tallied with an "X"
9 Place plastic sheets between stops To help customers unload properly10 Handle out of sequence items Place yellow tag on item To let the customer know it is out of sequence
Mark load sheet (see above) To assure the product was loadedFill out 'Out of Sequence Form' To track how many out of sequence items we ship Put on form when missed High light item when received
11 Contact yard man to move trailer Notify 20 cabinets prior to finishing the load To give the yard man time to deliver a new trailerSafety / In-Process Quality Work Element
KEY Ergo Stock Check Walking TOTALSReturn to Start
Loading Process
Approved By:
Work Ldrs Supervs. ManagerDate: Date: Date:
Work ElementsKey points Reason
Safety, Quality, Technique, Cost
Standard Work Sheet
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
PlantShipDate Customer Week Shift Cell
Has Cell Been
Converted?(Yes or No)
PiecesShipped
PiecesShort Outlier
CumulativeShipped
CumulativeShort
CumulativeRate
Last 30 Load
Shipped
Last 30 LoadShort
Last 30 LoadRate
1 3/24/03 KSI 2 2 2 YES 187 1 187 1 0.53%1 3/26/03 KSI 2 2 3 YES 278 1 465 2 0.43%1 3/26/03 KSI 2 2 4 YES 200 1 665 3 0.45%1 4/1/03 KSI 3 1 3 YES 268 0 933 3 0.32%1 4/3/03 KSI 3 2 3 YES 344 0 1277 3 0.23%1 4/7/03 KSI 4 2 4 YES 299 0 1576 3 0.19%1 4/7/03 KSI 4 1 3 YES 359 0 1935 3 0.16%1 4/8/03 KSI 4 1 10 YES 348 0 2283 3 0.13%1 4/8/03 KSI 4 2 7 YES 285 0 2568 3 0.12%1 4/9/03 KSI 4 2 7 YES 265 0 2833 3 0.11%1 4/9/03 KSI 4 2 3 YES 607 0 3440 3 0.09%1 4/10/03 KSI 4 2 10 YES 438 0 3878 3 0.08%1 4/10/03 KSI 4 2 3 YES 366 0 4244 3 0.07%1 4/11/03 KSI 4 2 2 YES 420 0 4664 3 0.06%1 4/11/03 KSI 4 2 8 YES 302 0 4966 3 0.06%1 4/14/03 KSI 5 2 3 YES 325 0 5291 3 0.06%1 4/14/03 KSI 5 2 8 YES 329 0 5620 3 0.05%1 4/15/03 KSI 5 2 8 YES 333 0 5953 3 0.05%1 4/15/03 KSI 5 2 3 YES 341 0 6294 3 0.05%1 4/16/03 KSI 5 2 3 YES 363 0 6657 3 0.05%1 4/16/03 KSI 5 1 9 YES 308 1 6965 4 0.06%1 4/17/03 KSI 5 2 3 YES 204 0 7169 4 0.06%1 4/17/03 KSI 5 2 7 YES 218 0 7387 4 0.05%1 4/17/03 KSI 5 2 3 YES 514 0 7901 4 0.05%1 4/21/03 KSI 6 1 4 YES 302 0 8203 4 0.05%1 4/21/03 KSI 6 1 2 YES 332 1 8535 5 0.06%1 4/22/03 KSI 6 2 4 YES 301 0 8836 5 0.06%1 4/22/03 KSI 6 2 10 YES 265 0 9101 5 0.05%1 4/23/03 KSI 6 2 9 YES 359 0 9460 5 0.05%1 4/23/03 KSI 6 1 5 YES 386 0 9846 5 0.05% 9846 5 0.05%1 4/24/03 KSI 6 2 7 YES 325 0 10171 5 0.05% 9984 4 0.04%1 4/24/03 KSI 6 2 10 YES 296 0 10467 5 0.05% 10002 3 0.03%
Shipping Shortage Tracking Log - Adrian
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Shipping Shortage Tracking Summary
Shipping Shortage Rate
Plant Before Target As of 4/29/03
Adrian .16% .12% .03%
Las Vegas .18% .14% Not yet implemented
Culpeper .16% .12% .11%
Ocala .15% .11% .12%
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Theory: Adrian’s shortage rate has improved due to the implemented changes
Ho: Shortage rate is independent of shipments before or after this project.
Analysis:
Conclusion: Shortage rate IS NOT independent of before or after the project.
The project has made a significant improvement in Adrian
Adrian Shipping Shortages Before and After Adrian Shipping Shortages Before and After ProjectProject
Chi-Square Test: Ship, Short
Expected counts are printed below observed counts
Ship Short TotalBefore 13389 22 13411
13396.68 14.32
After 10002 3 100059994.32 10.68
Total 23391 25 23416
Chi-Sq = 0.004 + 4.121 +0.006 + 5.524 = 9.656
DF = 1, P-Value = 0.002
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Theory: Culpeper’s shortage rate has improved due to the implemented changes
Ho: Shortage rate is independent of shipments before or after this project.
Analysis:
Conclusion: Shortage rate IS NOT independent of before or after the project.
The project has made a significant improvement in Culpeper
Culpeper Shipping Shortages Before and After Culpeper Shipping Shortages Before and After ProjectProject
Chi-Square Test: Ship_2, Short_2
Expected counts are printed below observed counts
Ship_2 Short_2 TotalBefore 50955 80 51035
50965.28 69.72
After 27990 28 2801827979.72 38.28
Total 78945 108 79053
Chi-Sq = 0.002 + 1.515 +0.004 + 2.759 = 4.280
DF = 1, P-Value = 0.039
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Theory: Ocala’s shortage rate has improved due to the implemented changes
Ho: Shortage rate is independent of shipments before or after this project.
Analysis:
Conclusion: Shortage rate IS independent of before or after the project.
The project has not yet made a significant improvement in Ocala
Ocala Shipping Shortages Before and After Ocala Shipping Shortages Before and After ProjectProject
Chi-Square Test: Ship_3, Short_3
Expected counts are printed below observed counts
Ship_3 Short_3 Total1 12187 18 1220512188.14 16.86
2 5158 6 51645156.86 7.14
Total 17345 24 17369
Chi-Sq = 0.000 + 0.076 +0.000 + 0.181 = 0.257
DF = 1, P-Value = 0.612
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Current COPQ
Plant
Average MonthlyShipments
ShortageRate
AverageShortages per Month
ShortageRate
AverageShortages per Month
ShortageRate
AverageShortages per Month
Adrian 286567 0.16% 459 0.12% 344 0.03% 86Las Vegas 252856 0.18% 455 0.14% 341 0.18% 455Culpeper 157062 0.16% 251 0.12% 188 0.11% 173Ocala 90330 0.15% 135 0.11% 102 0.12% 108Total 786815 1300 975 822
Pieces Short at Start of Project 1300Cost per Piece 17$ Cost of Poor Quality at Start 22,100$ per month
Planned Improvement in Pieces 325Cost per Piece 17$ Planned Improvement Dollars 5,525$ per month
Improvement in Pieces as of 4/29 478Cost per Piece 17$ Improvement Dollars as of 4/29 8,126$ per month
Before Target AS of 4/29/03
Actual Improvement Exceeds Plan!
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Lessons LearnedLessons Learnedσσ Determine data availability before assigning projects Determine data availability before assigning projects
to enable enough data to be available to analyzeto enable enough data to be available to analyze
σσ Be sure to dig deep enough in the Analyze phase to Be sure to dig deep enough in the Analyze phase to get to the true vital few Xget to the true vital few X’’ss
σσ It is not enough to change the process, the control It is not enough to change the process, the control plan must be worked very hard to be sure the changes plan must be worked very hard to be sure the changes are locked inare locked in
σσ Accessories are no more likely to be short than Accessories are no more likely to be short than cabinetscabinets
σσ Loaders with more experience have a higher shortage Loaders with more experience have a higher shortage rate than loaders with less experiencerate than loaders with less experience
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Next StepsNext Stepsσσ Las Vegas implement improved process Las Vegas implement improved process
by 5/9/03by 5/9/03σσ Ocala and Las Vegas monitor standard Ocala and Las Vegas monitor standard
work to get shortages down to the work to get shortages down to the planned levelplanned level
σσ Add shortage tracking to Production Add shortage tracking to Production Manager MBPManager MBP’’ss
σσ Continued monitoring by OperationsContinued monitoring by Operations
Six Sigma and Project Management 041205.pptSix Sigma and Project Management 041205.ppt
Other ResourcesOther Resources
σσ www.isixsigma.comwww.isixsigma.com
σσ www.sixsigmaforum.comwww.sixsigmaforum.com
σσ www.juran.comwww.juran.com