Six Sigma and TUR Planning  What is Six Sigma?  Origin of Six Sigma  Improvement Model  Tools of Six Sigma  Lean Manufacturing

Six Sigma may be expressed as... 66

What is 6  ? A level of process variation that would yield % good product No more than 3.4 DPM (defects per million parts produced) Business philosophy of continuous improvement

If 99% were Good Enough... 17,000 pieces of mail lost every hour 30,000 newborn babies would be dropped 200,000 incorrect prescriptions each year Unsafe drinking water 4 days each year No electricity/water/heat for 15 minutes each day We would all be monkeys

Expected Levels of Defects SigmaShort TermLong Term 33 2,700 DPM68,800 DPM 44 63 DPM5,200 DPM 55 574 DPB280 DPM  2 DPB3.4 DPM

A picture of 6 

Origin of 6  Created by Motorola in mid 1980’s – Engineer Bill Smith Noticed that products with high “first pass yields” performed better in the field Six Sigma is Motorola trademark Measure defects per million instead of % defective

New Perspective – 99% Defective 1 defect per hundred 10 defects per thousand 10,000 defects per million 10 million defects per billion!

Concept of “Loss” USLLSL Nominal Good Bad Zero Loss LOSSLOSS

Taguchi “Loss Function” Loss to society increases as products and processes deviate from “ideal” Loss for any process can be quantified and measured

The 10X Rule It costs X to prevent a defect It costs 10X to find a fix a defect internally It costs 100X to fix the same problem in the field

DMAIC Improvement Model Define - Define the project’s purpose and scope and obtain background information about the process and its customers Measure – Focus your improvement effort by gathering information about the current situation Analyze – Identify the Root Cause(s) and to confirm them with data

DMAIC Improvement Model (cont) Improve – Develop, try out and implement solutions that will eliminate the root cause(s) Control – Maintain the gains you’ve made by standardizing the work methods

Tools of 66

Define Affinity Diagram Project management / communication plan CTQ tree KANO Model Process Mapping Understand the “Voice of the Customer”

Measure Run Charts / Control Charts Data Collection – Check Sheets Pareto Charts Histograms – Standard Deviation Flow Charts Measurement System Analysis Operational Definitions Taguchi Loss Function

Analyze Brainstorming Cause-and-Effect Diagram Design of Experiment – DOE Focused problem statement – what/when/where/how/who Hypothesis testing Scatter Diagram (Regression Analysis)

Improve Failure Mode and Effects Analysis Control Charts Histograms – Standard Deviation Pareto Charts Plan-Do-Check-Act Cycle (PDCA)

Control Communication Plan –Revised Work Instructions / SOPs –Training –Final Management Report / 6  Story Board Control Chart Periodic Audits

Goal/QPC Memory Jogger II

Lean Manufacturing A system for eliminating waste from any manufacturing or business process Waste is anything that does not add value to the product.

Waste is “anything other than the minimum amount of equipment, materials, parts, space, and worker’s time, which are absolutely essential to add value to the product.” Shoichiro Toyoda President, Toyota © 1995 Corel Corp. Waste (Muda)

Value Stream Mapping TPM Standardized work 5S UCL Kaizen Process Suggestion system Demand-pull Plant Layout Problem Solving Error Proofing Effective Meetings Quick Change over Cellular/Flow Manufacturing Lean Accounting Kanban 6 Sigma Zero defects Breakthrough Thinking Issue Management Metrics Change Management Visual Management Project Management ENTERPRISE The Lean Umbrella – HVS Tool Kit

Conventional Layout RECEIVE PARTS STORAGE RAW Material STORAGE SHIP STORAGE TEST OFFICE LATHES DRILL PRESS Molding MILLS ASSEMBLY Batch Production

Cellular Production Finished Parts Raw material LatheDrillMill Press Ream AssemblyTest Office

Current State Map

Post Install IIIIII C/T = 6 second C/O = 30 sec Uptime = 85% 27,000 sec. avail. EPE = 2 minutes C/T = 7 seconds C/O = 10 sec Uptime = 100% 1 Shift 27,000 sec. avail. 1 min General Illumination Red Tray Green Tray Yellow Tray Tray = 6 pieces 1 Shift 1x Daily Parts Supplier Boards,Posts, Production Control Forecast Sequence Sheet 2 min 6 sec 1 min 6 sec 1 min 7 sec 1 min 7 sec Production Lead Time Value- Added Time = 11:40 min = 33 sec. Daily Ship Schedule Diode Install Resister Install Switch Install LED Install Final Inspection I Shipping Production Schedule C/T = 6 seconds C/O = 10 sec Uptime = 100% 1 Shift 27,000 sec. avail. C/T = 7 seconds C/O = sec Uptime = 100% 1 Shift 27,000 sec. avail. C/T = 7 seconds C/O = 10 sec Uptime = 100% 1 Shift 27,000 sec. avail. C/T = 7 seconds C/O = 1 minute Uptime = 100% 1 Shift 27,000 sec. avail. 1 min 2 min 7 sec OVER PRODUCTION Over Processing Movement Inventory DEFECTSDEFECTS Information Transport Waste: an activity that consumes resources but creates no value Waiting

Future State Map

“At Toyota, we get brilliant results from average people managing a brilliant process. Others get average results from brilliant people managing broken processes”.