1. LEAN system & Six Sigma Lecture 6.

2. Value That customer is willing to pay That changes products color, function, shape, other attributes so that the product is getting closer to the customers requirements That we do right at first time

3. Wastes Those processes which directly do not create value for customers (muda, mura, muri) :  that are not necessary, and must be eliminated  That are necessary, because these are supporting value-add processes, cannot be eliminated (like transporting) Muda – 7 wastes of lean Mura – not leveled workflow Muri – overloading of workers and assets

4. Lean thinking Operation Traditional improvement Lean improvement Non value-add process Value-add process

5. Supporting goals A balanced system, smooth, rapid flow of materials and/or work Supporting goals:  Eliminate disruption  Make the system flexible  eliminate waste, especially exess inventory

6. There are 7 wastes in LEAN (TIMWOOD): Inventory Overproduction Waiting Unnecessary transportation Processing waste Inefficient work methods Defects

7. Tools of LEAN relating to quality

8. Quality improvement - Jidoka Autonomation – automatic detection of defects during production. It consist two activities:  One for detecting defects when they occure  Another for stopping production to correct the cuase of defects.

9. Fail- Safe methods – Poka Yoke Methods:  The contact method identifies product defects by testing the product's shape, size, color, or other physical attributes.  The fixed-value (or constant number) method alerts the operator if a certain number of movements are not made.  The motion-step (or sequence) method determines whether the prescribed steps of the process have been followed.

10. Kanban Production Control System Kanban is the Japanese word meaning “ signal ” or “ visible record ”  Sign to produce  Sign to transport Paperless production control system

11. Preventive maintenance and housekeeping 5S  Sort –decide which item is needed  Straighten – needed items can be assessed quickly  Sweep – clean workplace  Standardize – use standard intructions  Self discipline – make sure that employees understand the need for uncluttered workplace

12. Six Sigma

13. mean 3σ3σ3σ3σ LSL USL 3 sigma process 1 sigma process LSL USL 6σ6σ 6σ6σ mean 5% is out of limits! 1 σ – 691 462 ppm 2 σ – 308 538 ppm 3 σ – 66 807 ppm 4 σ – 6 210 ppm 5 σ – 233 ppm 6 σ – 3,4 ppm

14. DMAIC Define Measure Analyze Improve Control Plan Do Check Act PDCA

15. Six Sigma Project Risk Worksheet

16. Six Sigma Project Return

17. Project Risk and Return matrix 0 10 20 30 40 50 60 70 80 90 100 Risk factor 100 90 80 70 60 50 40 30 20 10 0 STARS LOW-HANGING FRIUTSDOGS ? Rwturn factor

18. XY matrix Inputs and outputs Determine which input is the most important to focus on

19. TAGUCHI DESIGN EXPERIMENT (DOE) Robust Design – select technology Parameter Design – set parameters which affect quality Tolerance Design – improve the quality if parameter design doesn’t work Definition of quality – loss to society

20. QLF (Qualtiy Loss Function) L=K*V 2  K – constant, and  V2- mean squared dviation from target value K=C/T 2  C - unit repair cost  T – tolerance interval Target valueLSLUSL

21. Exercise - QLF Suppose the cost to repair a radiator on an automobile is $200. Compute the QLF for losses incurred as a result of a deviation from target setting where a tolerance of 6±0,5 mm is required and the mean squared deviation from target is (1/6) 2. Solution: K=200/0,5 2 =800 L=K*V 2 =800*(1/6) 2 =$22,22/unit

22. TAGUCHI PROCESS 1. Problem identification 2. Brainstorming session  identify factors, its settings, interactions, Control factor Noise factor  Identify objectives The less is better Nominal is best The more is the better Experimental design  Offline experimentation (number of replications) Experimentation  Orthogonal array (determined by the number of factors and levels)  Record the result  Compute average performance for each factor  Showing the best outcomes Analysis (which level of each factor is the proper one) Confirming experiment (validate results)

23. Thank you for your attention!