6 Sigma Projects Presentation

8/10/2019 6 Sigma Projects Presentation

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SIX SIGMAOVERVIEW



Six Sigma

“Six Sigma” refers to tools, processes andcultures made famous by Motorola and

General Electric in the 1980s and are aimedat reducing variability and defects.



Six Sigma Origins

Motorola deployed Six Sigma Methodology in

80’s

In1981, Motorola set out to improve thequality of their products and services tenfold.

In 1988, accepted Malcolm Baldrige National

Quality Award, and began the Six SigmaQuality movement.



Motorola Experience

Between 1983-87: spent $70 Million on qualityrelated education.

Productivity increased average of 12.3%/yr.

Cost of Quality reduced by more than 84%.

99.7% of in-process defects eliminated.

$11 Billion in manufacturing costs saved.

Average annual compounded growth rate of17% in earnings, revenues and stock prices.



Six Sigma Applications

Manufacturing , Service, Chemical, Financial..

High or low volume.

Thousands, Millions or Billions in Revenue.

Even Non-Profit Organizations.



GE Experience

Capacity improvements of 12-18%.

Rise in operating margin to 16.7%.

$750 millions in savings.



GE plastics

Reduced color variation in plastic products.

Raised quality from 2 sigma to 4.9 sigma

over 4 months.Saved $400,000 a year for one plant. (ref

GE Way).

In 1996, first year of Six Sigma deployment,GE Plastics achieved benefits of $20 million



Other Six Sigma Industry

Leaders

Boeing, IBM, Bombardier, Asea BrownBoveri, DuPont, Kodak, Compaq and Texas

Instruments. GMAC Mortgage, Citibank, JP Morgan and

Cendant Mortgage.



Integral Management and QualitySolutions 11

Integral MQS Achievements

Sample of Six Sigma Projects

Implemented




Project 1:

Optimization of Calcium

Addition

P j 1



Project 1:

Optimization of Calcium Addition

• EFS loss of 1,481,544 L.E per year due to the uses of the heated

Calcium-wire after Calcium optimization.

• The process current sigma level is 2.15

Opportunity Statement: (Problem Definition )

• Reduce defects percentage from 25% to 11% by July 2006.

• Reduce revenue losses by 740,772 L.E.

• Improve process Sigma level to 3.69 sigma.

Goal Statement:




Project 2:

Reduce Casting Time



ro ect :

Reduce Casting Time

• Achieve the average process time

• Save annual revenue loss of LE 20,000,000.

•Increase productivity.

• Improve On-Time Delivery.

• Improve Employee Morale.

• Improve Flexibility & Reduce Production Interruption.

• Currently the Variable operation process current sigma level is

2.49, if it increased to 3; So there will be 0.51 increase in sigma

level.

Opportunity Statement: (Problem

Definition )

Goal Statement




Project 3: Width DropDefect

(Project Charter)



Project 3: (Project Charter)

Width Drop Defect

Business Case:

The Width Drop defect beside causing an annual

revenue loss of 6,704,422.50 L.E., it causes rework

and production disturbance and it might cause adelay in finished product delivery. By reducing this

defect, the company will improve its financial

performance, increase productivity and deliver

finished product on time.

Opportunity Statement:

Currently, in EFS, there are 0.62% defective

Coils due to width drop after the hot strip

Mill process. This represents a revenue lossof 6,704,422.50 L.E. per year. The process

current sigma level is 3.76

Project Goal :

Reduce the cost of width drop defect by 6,033,979 LEImprove process Sigma level from 3.76 to 4.54 sigma.

Improve Delivery on time.

Reduce production interruption.

Improve employee morale.

Increase Customer satisfaction.

Project Scope:

HSM Operation Process:1. HSM: Start with slabs and ends with Hot

Rolled Coils (HRC).

2. The Project scope is to control the widthdrop which occurred in the Hot Strip Mill.

Time Schedule & Project Plan: Activity From To

Define Phase 15/01/2006 15/02/2006

Measure Phase 15/02/2006 30/04/2006

Analyze Phase 01/05/2006 15/05/2006

Improve Phase 15/05/2006 30/06/2006

Control Phase 01/07/2006 10/07/2006

Team Selection:Dr.Gamal Megahed Sponsor TD Manager

Nabil Douban Black Belt

Ahmed Nabil Adhoc Financial Manager

Usama Ahmed Member HSM Process Engineer

Mohammed Awad Member HSM Production Eng.

Mohammed Ibrahim Member Quality Control Eng.

Ahmed Attala Member Automation Engineer

Niraj Singh Member SKP in Charge




Improve Sales Order cycle and

Scrap Products Due To Expiry



1- Definition of key terms Return Goods: The Returned Products which is stayed on the customer shelf until

expiration or any kind of defect. Returns Invoices: The invoices which are totally returned, the customer did not accept any

of it’s contents.

Partial R. Invoices: The invoices which are partially returned, the customer accepted someof it’s contents and returned the others.

Contract : Local or exportation tenders.

Sales : The Net sales (Total Sales – Returns)

Sale order cycle: From Salesman visits schedule, physical visit, order taking,order follow-up, order delivery to on shelf products follow-up

Scrap : The Executed Finished Products

Scrape due to expiry date: The scraped products due to exceeding theexpiration date at the customer place.

Rework : The needed work on returned products to reuse them Customers: Pharmacies, Distributors, and others like hospitals, Health

insurance, …Etc.



2- Project Selection

Sales

Net Sales Returns

Distributors Pharmacies Distributors Pharmacies

Invoice Returns Return Goods

Rework Scrape

Due to Expiration

Others

At CompanyAt Pharmacy

Other

customers

Other

Customer

Work Break Down Structure



Returned Products

Returned products

Contract R. partially Contract R. Invoice Contract Returns

Invoice R. partially Invoice Returns Returned Goods



Why is this so important?

6.0%2.0%

92.0%

Category

Net Sales

Samples

Returns

Sales Transaction % 2006

The Total returns represent 6 % from The Total Sales

while the samples represent 2 %



Returned Goods (A Closer Look)

7% 11%0.00%

41%21%

18%

0%

20%

40%60%

80%

100%

Contract R.

partially

Contract R.

Invoice

Contract R Invoice R.

Partially

Invoice R. Return

Goods

92%

6%

2%

Sales

Samples

Returns



Facts

C o

u n t

P e r c e n t

Customer TypeCount

56.8 99.2 100.0

1221801 910889 16881

Percent 56.8 42.4 0.8

Cum %

OtherDistributersPharmacies

2000000

1500000

1000000

500000

0

100

80

60

40

20

0

Pareto Chart of Customer Type ( Returned Goods Units 2004 - 2006)

Almost 57% of Returned goods are from the

pharmacies



Business Case

The defect of returned products based on

expiry date cause loss of about 3,000,000 LE

per year.

The current sale order form not adequate for

sales man requirements.



Opportunity Statement

Currently ,the returned products

represent 18% from all returned Products.

But 82 % from them goes to scrap This

represent loss of about

2.5 - 3 Million - L.E. per year.



Facts

The Company gives about 2 % form sales valueas

A Samples , so there is an opportunity to reusethe

Returned products if we have control on theproducts in the market



Project Scope

The Sales Cycle From Getting the

Customer Order until The

Expired product Execution



Project Objectives

1- Reduce the Expired products by

1,000,000 L.E. per year.

2- Improve process sigma level from 0.6 to 1.6 Sigma.

3- Improve the return cycle.

4- Improve Sales order cycle 5- Increase the customer satisfaction.



Project CharterBusiness Case

The defect of returned products

Based on expiry date cause loss of about3,000,000 LE per year.

Opportunity Statement

Currently ,the returned products

due to expiry date represent 18% defect from allreturned Products The Company Scrape about 82%

from them. This represent loss of about

3 M L.E. per year. The current sigma level 0.6

Project Goal

1- Reduce the cost of returned products by

1,000,000 L.E. per year.

2- Improve process sigma level from

0.6 to 1.6 Sigma.

3- Improve the return cycle.

4- Increase the customer satisfaction.

Project Scope

The Sales From Getting the Customer Order until The

Expired product Execution.

Time Schedule

Define 2 Weeks

Measure 2 Weeks

Analyze 2 Weeks

Improve 1 Month

Control 1 Month




Thank You

6 Sigma Projects Presentation

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