1. SEMESTER PROJECT ISE 250: Organizational Improvement Capabilities and Skills Instructor: Dr. Baruch I. Saeed Team Members: Ramachandran Janakiraman Emma Lara Richard Olaso Ronnaporn Pasakdee Young Shea

2. Agenda Six Sigma Storyboard – Define – Measure – Analyze – Improve – Control Conclusion

4. Six Sigma Storyboard Define Goals: – To define the project’s purpose and scope – To obtain background information: Process Customers – Understand the voice of the customer (VOC)

5. D for Define Tools Applied Problem Statement Customer(s)? Business Case. Problem Statement Customer(s)? Business Case. Charter Process Flow Diagram Critical-to-Quality

6. Charter Problem Statement – SuperMicro warehouse not meeting customer needs – No visibility of flow through warehouse, and packages arriving late to customer – Customers opting to go with competitors if not solved Business Case – SuperMicro exports microprocessors throughout the country. Menlo Worldwide has been contacted to analyze the company’s dilemma, and to determine if RFID implementation will solve existing problems. Deliverables – Obtain an efficient and effective proposal, while meeting customer’s needs Success? – Better visibility – On-time delivery Scope – Evaluate current warehousing process – Provide proposal/recommendations within 4 months (February-May)

7. D for Define Tools Applied Process Flow Diagram Critical-to-Quality

8. Updated PFD (with Time Study)

11. D for Define Tools Applied Critical-to-Quality

12. On-Time Delivery Reduce warehouse cycle time Optimal responsiveness Optimal Inventory level Consistently meeting customer demand NeedDrivesCTQs Time on hold is minimal Reduce order process time Low Stock-out % Streamline process Efficient transportation Efficient material handling Optimal picking sequence Fast inventory turnover; FIFO Fast dock-to-stock time Easy to identify location for customer orders Good inventory tracking system Sufficient staffingHigh Productive output High accuracy in picking orders (fill-rates) Fast delivery, short transit time Quick respond to urgent orders High service level Low % transportation delay Low loss or damage claims Shorter promised lead times  Critical-to-Quality  …. indicate deficiency

13. Six Sigma Storyboard Measure Goals: – Collect the baseline data – Create a Pareto chart to analyze the current process – Create a Balance Scorecard for what to improve and how to measure – Do benchmarking against competitors and industry standards

14. M for Measure Tools Applied Balance ScorecardPareto ChartBenchmarking

15. - Time Study - Pareto Chart ( High Level and Detailed Process )

16. M for Measure Tools Applied Balance ScorecardBenchmarking

17. VS Industry StandardsVS Competitor Benchmarking

18. Balance Score Card Financial33 Warehouse Productivity Net Received Orders Per Hour 6 Net Stocked Orders per Hour 3 Net Pulled Orders Per Hour 3 Net Shipped Orders Per Hour 6 Expense per Received and Shipped Orders 6 National Revenue Growth 6 International Revenue Growth 3 IBP 20 Service Quality Index Rejected Orders4 Shortage Orders2 Shipped Damaged Orders2 Received Damaged Orders2 Committed Services2 Visibility (2) Received Orders Confirmed1.5 Shipped Orders Confirmed0.5 Claims (4) Origin Damage Issued2 Destination Damaged Issued2 Concern2 Customer 27 Customer Retention 20 Volume Growth 7 People20 Employees Paid Over 9 hours5 Turnover1 Safety Index(14) Injury Frequency/ Expense7 Accident Frequency/ Expense7

19. Six Sigma Storyboard Analyze Goals: – Explore potential causes – Identify and focus on root problems – Interpret root problems – Help formulate feasible solutions

20. A for Analyze Tools Applied Cause-and-Effect Diagram

23. Communication Work Environment People Material Handling Methods Machine Equipment Measure Lack of interdepartmental communication Inefficient handling procedure Improper transport aid Poor picking method Improper storage configuration Inconsistent time study Lack of training Long warehouse processing time Cause-and-Effect Diagram: Analysis and Findings

24. Six Sigma Storyboard Improve Goals: – Plan, develop, and implement solutions – Prioritize the projects – Develop project plans – Actual implementation plan

25. I for Improve Tools Applied PDCAPrioritization Service Level Productivity Level

26. Prioritization

28. I for Improve Tools Applied PDCA Service Level Productivity Level

29. PDCA: Service Level

30. PDCA: Service Level (Gantt Chart)

31. PDCA: Productivity Level

32. PDCA: Productivity Level (Gantt Chart)

33. Six Sigma Storyboard Control Goals: – Document new process methods and standard data per department – Present results to management for an approval – Training program – Monitor performance – Evaluate current methods and standard times every five years

34. C for Control Tools Applied Control Plan

35. Order Matrix Classification

36. Control Charts

37. Project Gantt Chart

38. Conclusion Entire warehouse process was analyzed Take care of small problems first: – Standardization of process times – Classification of orders Install and monitor proposed changes Start thinking of RFID implementation

39. The End Questions………

40. ElementSub-elementWeight How Measured Target Financial 33 Warehouse Productivity Net Received Orders Per Hour 6 % Eff100% Net Stocked Orders per Hour 3 % Eff100% Net Pulled Orders Per Hour 3 % Eff100% Net Shipped Orders Per Hour 6 % Eff100% Expense per Received and Shipped Orders 6 98% Matrix100% National Revenue Growth 6 % Eff100% International Revenue Growth 3 % Eff100% Balance Scorecard (2006)