CSUN Engineering Management Six Sigma Quality Engineering Week 2 Introduction to Six Sigma Macro...

CSUN EngineeringManagement

Six Sigma Quality Engineering

Week 2Introduction to Six Sigma

Macro model of Six Sigma Management

http://www.csun.edu/

Chapters 1,2 & 3 Outline

Values of Six Sigma Development & Timeline of Six Sigma Management Benefits of Six Sigma Management Voice Of the Process (VOP) Variation in a Process Voice Of the Customer (VOC) Roles and responsibilities in Six Sigma Management Technical terminology of Six Sigma Management Six Sigma Methodology (DMAIC) Six Sigma Macro Model (Dashboards)\ Six Sigma BB project presentation

Six Sigma is a process that enables companies to increase profits dramatically by streamlining operations, improving quality, and eliminating defects or mistakes in everything a company does, from raw materials to finish goods. A Six Sigma process generates a defect probability of 3.4 parts per million (PPM).

Key activities in Six Sigma are:

1. Understanding customer needs (in quantifiable terms) 2. Translating the needs into the measurable outcomes

Key objectives in Six Sigma are:

1. Understanding & measuring the process inputs2. Looking at the root causes of variation

Values of Six Sigma

If we are so good at X, why do we constantly test and inspect Y?

X1 . . . XN

Independent

Input-Process

Cause

Problem

Control

f (X)Y=

The Focus of Six Sigma

• Y• Dependent• Output• Effect• Symptom• Monitor

• Allied Signal

• Boeing

• Caterpillar

• General Electric

• John Deere & Co

• Lockheed Martin

• Motorola

• Polaroid

• Sony

Six Sigma Companies

ProcessCapability

ProcessCapability

Nonconformities PMO

Nonconformities PMO

2 308,770

3 66,811

4 6,210

5 233

6 3.4

Parts per Million Opportunities

Parts per Million Opportunities

The sigma scale of measure is perfectly correlated to such characteristics as defects-per-unit, parts-per million defective, and the probability of a failure/error.

1978 Poor Quality!!! Motorola sells it TV business. When asked why, VP states “QUALITY STINKS!”

•Did not co-operate across division

•Ignored customer requirements

•Diluted culture with new employees without training

•Did not realize that Sigma had limitations

Was an internally focused program

Timeline of Six Sigma Management

1980 Corporate Quality Officer appointed

1981 Training Center established

1985 Began to measure total defects/unit

1987 Corporation adopts Six Sigma program, Six Sigma goal to be achieved by 1992

1988 Motorola wins Malcolm Baldridge Award at the corporate level

1990 Six Sigma Research Institute formed.

1992 Blackbelt infrastructure developed and implemented at Motorola, Kodak, TI, IBM, and Digital.

1993 Motorola hires 40,000 new employees and removes the 40 hour quality training program. Revenue growth averages 27% growth.


1994 Motorola owns 60% of the wireless phone market. Six Sigma Academy formed.

1998 Motorola owns 34% of the wireless phone market. Revenue growth is 5%. Shareholder value is 1%; it had averaged 54% in previous 3 years.


Six Sigma Companies

•Produce superior, reliable, and customer-satisfying products…

• Are faster, better, cheaper, and more efficient than their competitors…

Benefits of Six Sigma Management

Improve process flows Reduce total defects Reduce process cycle time Enhance Customer and Employee satisfaction Help reduce inventory Help improve capacity and output Help increase quality and reliability Help decrease product costs Help improve product delivery to custumer

Voice Of the Process (VOP)

A process is a collection of interacting components that transform inputs into outputs toward a common aim.

ComponentsMachines Operators

AssemblyTest

Final InspectionShip to Customer

Customer receivesproduct

Inputs Process Outputs

Variation in a Process

• What is Variation?

• The enemy of certainty

• The enemy of customer satisfaction

• Drives the unknown

• Adds to customer (and employee) disbelief

• Adds to lack of confidence in the ability of processes

• Increases risk that a result will not meet expectations

• Variation is a driver of defects

For any process, variation is the main reason for poor performance...

Variation is the key focus of Six Sigma

Variation in a Process

Feedback Loops• A feedback loop relates information about outputs from any stage

or stages back to another stage or stages to make an analysis of the process.

Inputs Process Outputs

Feedback Loop

• It is vital that we understand and are able to quantify what is critical to the customer's satisfaction.

Voice Of the Customer (VOC)

No GoodLoss

UnhappyCustomer

No GoodLoss

UnhappyCustomer

Good

No Loss

LSL USL

Nominal Value

•Critical to Customer’s satisfactions:

• High quality

• Lowest possible price

• Products deliver on time

Therefore

Producers should bring forth these products in a manner that minimizes cost and cycle time and

maximizes profit


• We need to ask ourselves...

•How easy it is for our customers to do business with us?

•Are we making assumptions about what customers need?

•How often do we ask our customers (internal and external) what they need?

•Is this information properly communicated throughout our organization.


We must place a value and emphasis on the customer, take measurements and measure inputs,

not just outputs

• Historically 1 in 25 unsatisfied customers express their dissatisfaction

Do you have dissatisfied customers?

• 1 unsatisfied customer typically tells 7-16 others.

• It cost about five times more to attract a new customer as it does to keep an old one.

Customer Satisfaction?

Roles and responsibilities in Six Sigma Management

Senior Executive• Provides the impetus, direction & alignment necessary for Six Sigma

ultimate success. Senior Executive should:1. Study Six Sigma management2. Link company’s objectives to Six Sigma projects3. Champion Six Sigma projects4. Constantly review Six Sigma projects progress

Executive Committee Member• They are the top management of an organization. Executive Committee

Members should:1. Deploy Six Sigma throughout the organization2. Prioritize and manage Six Sigma portfolio3. Assign champion, BB and GB to Six Sigma projects 4. Remove barriers to Six Sigma management5. Provide resources for Six Sigma management


Champion• Take a very active sponsorship and leadership role in conducting and

implementing Six Sigma projects. Champions should:1. Identify the project on the organizational dashboard2. Provide an ongoing communication link between the project team and Executive

committee3. Keep the team focused on the project by providing direction and guidance 4. Assure that Six Sigma methods and tools are being used in the project

Master Black Belt• Takes a leadership role as keeper of the Six Sigma process and advisor to

executives or business unit managers. Master Black Belt should:1. Counsel senior executives and business unit managers on Six Sigma

management 2. Continually improve and innovate the organization’s Six Sigma process3. Apply Six Sigma across across both operations and transactions-based process 4. Mentor Green Belts and Black Belts


Black Belt• Is a full time change agent and improvement leader. Black Belts

should have the following characteristics:1. Technical and managerial process improvement/innovation skills2. Understand the psychology of individuals and teams3. Not intimidated by upper management 4. Has a customer focus

• The responsibilities of a Black Belt include:1. Communicate with the champion and process owner about progress

of the project 2. Help team members design and analyze experiments3. Provide training in tools and team functions to project team members 4. Coach Green belts leading projects limited in scope


Green Belt• Is an individual who works on projects part time, either as a team member for

complex projects or as a project leader for simpler projects. Green Belts have the following responsibilities:1. Define & review project objective with project’s champion2. Facilitate the team through all phases of the project3. Analyze data through all phases of the project 4. Train team members in the use of Six Sigma tools and methods through all phases of

the project

Process Owner• Is the manager of a process. The process owner should be identified and

involved in all Six Sigma projects relating to the process owner area. A process owner has the following responsibilities:1. Empower employees to follow and improve best practice methods 2. Accept and manage the improved process after completion of the Six Sigma project3. Understand how the process works, the capability of the process, and the relationship of

the process to other processes in the organization

Technical terminology of Six Sigma Management

Critical-To-Quality (CTQ): Is a measure of what is important to a customer.

Defect: Is a nonconformance on one of many possible quality characteristics of a unit that causes customer dissatisfaction

Defects per Million opportunities (DPMO): A quality metric often used in the Six Sigma process. It is calculated by the number of defects observed divided by the number of opportunities for defects compared to 1 million units.

Yield: Is the proportion of units within specification divided by the total number of units.

Rolled Throughput Yield (RTY): Is the product of the yields from each step in a process.

Project Name:Estimated

completion date

Actual completion

date

Define Customers and Requirements (CTQs) Develop Problem Statement, Goals and Benefits I dentify Champion, Process Owner and Team Define Resources Evaluate Key Organizational Support Develop Project Plan and Milestones Develop High Level Process Map

Define Defect, Opportunity, Unit and Metrics Detailed Process Map of Appropriate Areas Develop Data Collection Plan Validate the Measurement System Collect the Data Begin Developing Y=f(x) Relationship Determine Process Capability and Sigma Baseline

Met Measure Phase Criteria NoMeasure

DefineMet Define Phase Criteria

StatusDMAIC PROCESS AND PHASE GATE

No

Six Sigma Methodology (DMAIC)

Six Sigma Methodology (DMAIC)

Define Performance Objectives I dentify Value/Non-Value Added Process Steps I dentify Sources of Variation Determine Root Cause(s) Determine Vital Few x's, Y=f(x) Relationship

Perform Design of Experiments Develop Potential Solutions Define Operating Tolerances of Potential System Assess Failure Modes of Potential Solutions Validate Potential Improvement by Pilot Studies Correct/Re-Evaluate Potential Solution

Define and Validate Monitoring and Control System Develop Standards and Procedures Implement Statistical Process Control Determine Process Capability Develop Transfer Plan, Handoff to Process Owner Verify Benefits, Cost Savings/Avoidance, Profit Growth Close Project, Finalize Documentation Communicate to Business, Celebrate

AnalyzeMet Analyze Phase Criteria No

ImproveMet Improve Phase Criteria No

ControlMet Control Phase Criteria No

Six Sigma Macro Model (Dashboards)

•A dashboard is a tool used by management to clarify and assign accountability for the “critical few” key objectives, key indicators, and project tasks needed to steer an organization toward its mission statement.

•There are four basic categories of dashboard key objectives:

•Financial Key Objectives

•Process Improvement Key Objectives

•Innovation/Customer Satisfaction Key Objectives

•Employee Growth and Development Key Objectives

Six Sigma Macro Model (Dashboards)

Los Angeles

2006

Cum Actual 9,080 18,847 29,546 40,519

Cum Plan 9,702 19,433 29,164 38,846Actual 6.3% 28.4% 22.0% 23.1%Plan 21.9% 19.1% 22.8% 16.9%

Actual 150 152.6 140.9 146.3Plan 139.5 137.5 136.3 133.5

Actual 41.9 46.8 48.6 47.4Plan 43.3 43.5 43.5 44

Actual 47 57 78 42Plan 50 50 50 50

Cum Actual 3 501 1,701

Cum Plan 3 389 409Cum Actual 2.3% 11.4% 12.2% 13.0%Cum Plan 14.5% 13.4% 14.0% 13.2%

Actual 0.5% 2.0% 0.7% 1.2%Plan 0.7% 0.7% 0.7% 0.7%

Cum Actual $280 $653 $1,092 $1,530Cum Plan $105 $160 $265 $370

Cum Actual $26 $46 $76 $81Cum Plan $13 $26 $39 $52

Actual 3.5 3.5 3.5 3.1Plan 3.5 3.5 3.5 3.5

Actual/ Plan

Greater than 10% from Plan

Within 5% of Plan

Between 10% and 5% from Plan

2005 Actual

Lean Score

SHAREHOLDERS

DSO

DPO

CFROGC

DOH

Capital Expenditures

($ 000)

Operating Margin

JAN FEB MAR APRSTAKEHOLDERKEY

MEASUREMENTDIAGNOSTIC

MEASUREMENT

Material Cost Out ($ 000's)

Factory Cost Out ($ 000's)

Cumulative Sales Growth Over Market

Productivity

105792

20.9%

133

45

27

1,517

12.0%

-3.3%

3.5

$2,320

$1,000

Six Sigma Macro Model (Dashboards)Actual 56.4% 63.7% 60.6% 65.6%Plan 60.0% 63.0% 65.0% 68.0%

Actual $8,262 $8,100 $6,973 $5,886Plan $8,000 $7,500 $7,000 $6,500

Actual 13.1% 6.2% 7.6% 4.8%Plan 0.0% 0.0% 10.0% 11.0%

Actual 60.5% 53.5% 60.0% 55.4%Plan 57.0% 58.0% 59.0% 60.0%

Actual 2012 1534 1783 2000

Plan 3000 3000 3000 3000Actual 8765 8488 18974 1087

Plan 12000 10000 9500 9000Actual 75.0% 66.7% 42.9% 66.7%Plan 75.0% 75.0% 75.0% 75.0%

ActualPlan 0.0% 0.0% 0.0% 0.0%

Actual 10.0%Plan 0.0% 0.0% 0.0% 10.0%

Actual 8.8 4.7 2.8 2.3Plan 5.0 4.0 2.9 2.7

ActualPlan $0 $0 $0 $0

Actual 100.0% 100.0% 100.0%Plan 0 1 1 1

Cum Actual $648 $1,195 $1,893 $2,406

Cum Plan $708 $1,416 $2,124 $2,832

EMPLOYEES

3 Month Rolling Supplier Quality

(DPPM)Dev. Program

Milestone OTD

Past Due $

($ 000's)

Product OTD

Charitable Contributions

($ 000's)

COMMUNITY

SUPPLIERS

Environ Audit Action Item OTD

Spend/Strategic Supplier ($000)

Employee Survey Action Item OTD

OCA Action Item OTD

Safety TCIR

MPS OTD

CUSTOMERSSupplier OTD

3 Month Rolling Product Quality

(DPPM)

62.1%

1

$8,311

9594

50.0%

0.0%

80.0%

2.0

$0

$7,213

14.6%

57.3%

2706

R E A S O N C O D E S

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A C T I O N P L A N S


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P l a n n i n g P r o b l e m L e b e t s a m e r / M c B r o o m O n - g o i n gR e v i e w a n d m e a s u r e e x c e p t i o n s m e s s a g e r e s o l u t i o n i n e a c h o f t h e f o c u s e d f a c t o r i e s

L e b e t s a m e r / M c B r o o m O n - g o i n gA c c e s s d a t a b a s e f o r p l a n n e r s b a c k l o g

L e b e t s a m e r / M c B r o o m C o m p l e t eS u p p o r t o f s c h e d u l e t o o l

H a r r i s C o m p l e t eR e - o r g a n i z a t i o n o f m a n u f a c t u r i n g a n d s u p p l y c h a i n .

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F o c u s A r e a s A c t i o n s O w n e r D u e D a t e

R e c e i v e d e a r l yH i g h v o l u m e , l o w d o l l a r s u p p l i e r s l i k e C h a v e r s G a s k e t a n d B o r a a r e s h i p p i n g e a r l y . C a l l e d o w n e r s t o e n s u r e t h e y u n d e r s t a n d t h e n e w f i v e d a y e a r l y , o n t i m e d e l i v e r y w i n d o w .

M e n d o z aC o m p l e t e

R e c e i v e d e a r l y M e t r i c e a r l y t o l e r a n c e c h a n g e d f r o m i n f i n i t e t o 5 d a y s . P o l i c y e n f o r c e m e n t M e n d o z a O n g o i n g

S u p p l i e r F a i l u r e U . S . B a l l C o r p . s t o c k i n g p r o g r a m ( a n o t h e r h i g h v o l u m e l o w c o s t s u p p l i e r )T . M e n d o z a 5 0 % c o m p l e t e

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S u p p l i e r F a i l u r e R a t i o n a l i z i n g s u p p l i e r b a s e ( A l p i n e , W C L , B l e v i n s , V i k i n g )T . M e n d o z a / Q u a l i t y m g r . O n g o i n g

P l a n n i n g P r o b l e m S u p p l i e r s n o w h a v e f o r w a r d v i s i b i l i t y f o r s u b - c o n t r a c t P O 's t o p l a n t h e i r c a p a c i t y n e e d s . T . M e n d o z a C o m p l e t eC M C a d d e d a s C e r t i f i e d S u p p l i e r - 6 2 % o f C M C p a r t s a r e n o w s h i p t o s t o c k a n d a t h r i d o f a l l r e c i e p t s a r e s h i p t o s t o c k .



60.0%

70.0%

80.0%

90.0%

100.0%

2003 Ja

n

Feb

Mar Ap

r

May Ju

n Jul

Aug

Sep

Oct

Nov

Dec

A c tual

Goal

0 .0 %

1 0 .0 %

2 0 .0 %

3 0 .0 %

4 0 .0 %

5 0 .0 %

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60.0%

70.0%

80.0%

90.0%

100.0%

2003 Ja

n

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r

May Ju

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Aug

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A c tual

Goal

0 .0 %

1 0 .0 %

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C u s t o m e r P a s t D u e - L o s A n g e l e s , C AC u s t o m e r P a s t D u eC u s t o m e r P a s t D u e -- L o s A n g e l e s , C AL o s A n g e l e s , C AM O N T H L Y P E R F O R M A N C E ( $ M )


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$ 0 . 0 0$ 1 . 0 0$ 2 . 0 0$ 3 . 0 0$ 4 . 0 0$ 5 . 0 0$ 6 . 0 0$ 7 . 0 0

2003 Ja

n

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

A c t u a l

G o a l

0 . 1 7 30 . 2 4 30 . 3 8 5

1 . 3 1 41 . 4 8 7

$ 0 . 0 0

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B o e i n g P H U S G o v ' t S p a r e s G u l f s t r e a m B . F . G o o d r i c h B o e i n g D e f .

F o c u s A r e a s A c t i o n s O w n e r D u e D a t eB o e i n g o f P h i l a d e l p h i a H o u s i n g s a r e b e i n g i n s p e c t e d a n d r e w o r k e d t o B / P . L a p s a r e i n p r o c e s s a t

D o w . S h a h a m 2 / 1 / 2 0 0 5

U S G o v t S p a r e s A d d i t i o n a l f o c u s p r o v i d e d b y a s s i g n i n g a g o v e r n m e n t s p a r e s c h a m p i o n ( R e d u c e d f r o m $ 3 . 3 M d o w n t o $ 1 . 3 M )

D u m l a o O n - g o i n g

G u l f s t r e a m D e v e l o p e d a b a c k l o g - t o - c u s t o m e r P O r e c o n c i l i a t i o n p r o c e s s . ( O u r b a c k l o g d i d n o t m a t c h G u l f s t r e a m ' s P O d a t e s ) .

H e a l y o n - g o i n g b a c k l o g s c r u b

C u s t o m e r P a s t D u e - L o s A n g e l e s , C AC u s t o m e r P a s t D u eC u s t o m e r P a s t D u e -- L o s A n g e l e s , C AL o s A n g e l e s , C AM O N T H L Y P E R F O R M A N C E ( $ M )


C U S T O M E R S – A U G U S T 2 0 0 4

$ 0 . 0 0$ 1 . 0 0$ 2 . 0 0$ 3 . 0 0$ 4 . 0 0$ 5 . 0 0$ 6 . 0 0$ 7 . 0 0

2003 Ja

n

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

A c t u a l

G o a l

0 . 1 7 30 . 2 4 30 . 3 8 5

1 . 3 1 41 . 4 8 7

$ 0 . 0 0

$ 0 . 5 0

$ 1 . 0 0

$ 1 . 5 0

$ 2 . 0 0

B o e i n g P H U S G o v ' t S p a r e s G u l f s t r e a m B . F . G o o d r i c h B o e i n g D e f .

F o c u s A r e a s A c t i o n s O w n e r D u e D a t eB o e i n g o f P h i l a d e l p h i a H o u s i n g s a r e b e i n g i n s p e c t e d a n d r e w o r k e d t o B / P . L a p s a r e i n p r o c e s s a t

D o w . S h a h a m 2 / 1 / 2 0 0 5

U S G o v t S p a r e s A d d i t i o n a l f o c u s p r o v i d e d b y a s s i g n i n g a g o v e r n m e n t s p a r e s c h a m p i o n ( R e d u c e d f r o m $ 3 . 3 M d o w n t o $ 1 . 3 M )

D u m l a o O n - g o i n g

G u l f s t r e a m D e v e l o p e d a b a c k l o g - t o - c u s t o m e r P O r e c o n c i l i a t i o n p r o c e s s . ( O u r b a c k l o g d i d n o t m a t c h G u l f s t r e a m ' s P O d a t e s ) .

H e a l y o n - g o i n g b a c k l o g s c r u b

S u p p l i e r Q u a l i t y ( D P P M ) - L o s A n g e l e s , C AS u p p l i e r Q u a l i t y ( D P P M )S u p p l i e r Q u a l i t y ( D P P M ) -- L o s A n g e l e s , C AL o s A n g e l e s , C AM O N T H L Y P E R F O R M A N C E

A C T I O N P L A N SS u p p l i e r F a i l u r e s P a r e t o s u p p l i e r r e a s o n c o d e s K . F i s c h e r 2 - 3 0 - 0 4

S u p p l i e r F a i l u r e R a t i o n a l i z i n g s u p p l i e r b a s eM e n d o z a /

Q u a l i t y m g r . O n g o i n g

V 2 2 s o u r c e i n s p e c t i o n a t D o wS t e v e B r a k e b i l l ,

S Q E C o m p l e t e

M a i n t a i n s u p p l i e r c o r r e c t i v e a c t i o n s y s t e mK a r l F i s c h e r ,

S Q E O n g o i n g

C o n t i n u e S u p p l i e r C o u n c i l e s t a b l i s h e d , 1 s t m e e t i n g M a r c h , ' 0 4M e n d o z a /

Q u a l i t y m g r . C o m p l e t e

V 2 2 s o u r c e i n s p e c t i o n a t T P TK a r l F i s c h e r ,

S Q E

C o n t i n u e C e r t i f i e d S u p p l i e r P r o g r a m r o l l o u t S Q E s O n g o i n g


05 0 0 0

1 0 0 0 01 5 0 0 02 0 0 0 02 5 0 0 03 0 0 0 03 5 0 0 0

A c t u a l

G o a l

0 . 0 %

5 0 . 0 %

10 0 . 0 %

S u p p l i e r F a i l u r e T e c h n i c a l P r o b l e m

N o t e : A l l u n i t s r e j e c t e d f r o m s u p p l i e r , c o d e d a s s u p p l i e r r e s p o n s i b i l i t y , a f f e c t S u p p l i e r D P P M . T h e r e f o r e , s u p p l i e r D P P M i s t h e r e s u l t o f “ S u p p l i e r F a i l u r e ” .


S u p p l i e r Q u a l i t y ( D P P M ) - L o s A n g e l e s , C AS u p p l i e r Q u a l i t y ( D P P M )S u p p l i e r Q u a l i t y ( D P P M ) -- L o s A n g e l e s , C AL o s A n g e l e s , C AM O N T H L Y P E R F O R M A N C E

A C T I O N P L A N SS u p p l i e r F a i l u r e s P a r e t o s u p p l i e r r e a s o n c o d e s K . F i s c h e r 2 - 3 0 - 0 4

S u p p l i e r F a i l u r e R a t i o n a l i z i n g s u p p l i e r b a s eM e n d o z a /

Q u a l i t y m g r . O n g o i n g

V 2 2 s o u r c e i n s p e c t i o n a t D o wS t e v e B r a k e b i l l ,

S Q E C o m p l e t e

M a i n t a i n s u p p l i e r c o r r e c t i v e a c t i o n s y s t e mK a r l F i s c h e r ,

S Q E O n g o i n g

C o n t i n u e S u p p l i e r C o u n c i l e s t a b l i s h e d , 1 s t m e e t i n g M a r c h , ' 0 4M e n d o z a /

Q u a l i t y m g r . C o m p l e t e

V 2 2 s o u r c e i n s p e c t i o n a t T P TK a r l F i s c h e r ,

S Q E

C o n t i n u e C e r t i f i e d S u p p l i e r P r o g r a m r o l l o u t S Q E s O n g o i n g


05 0 0 0

1 0 0 0 01 5 0 0 02 0 0 0 02 5 0 0 03 0 0 0 03 5 0 0 0

A c t u a l

G o a l

0 . 0 %

5 0 . 0 %

10 0 . 0 %

S u p p l i e r F a i l u r e T e c h n i c a l P r o b l e m



P l a n t Q u a l i t y ( C u s t o m e r D P P M ) - L o s A n g e l e s , C AP l a n t Q u a l i t y (P l a n t Q u a l i t y ( C u s t o m e r D P P MC u s t o m e r D P P M )) -- L o s A n g e l e s , C AL o s A n g e l e s , C AM O N T H L Y P E R F O R M A N C E



01 0 0 02 0 0 03 0 0 04 0 0 05 0 0 06 0 0 0

A c t u a l

G o a l

0 . 0 %1 0 . 0 %

2 0 . 0 %3 0 . 0 %

4 0 . 0 %5 0 . 0 %

6 0 . 0 %7 0 . 0 %

8 0 . 0 %9 0 . 0 %

1 0 0 . 0 %


I n s t r u c t i o n E r r o r O p e r a t o r E r r o r S u p p l i e r E q u i pM a l f u n c t i o n

F a v o r a b l e D i r e c t i o n

F a v o r a b l e F a v o r a b l e D i r e c t i o nD i r e c t i o n

I s s u e # R e s p o n s i b l e O p e n D u e D a t e

1 T e a m J u n - 0 4 N o v - 0 4

2 T e a m J u l - 0 4 N o v - 0 4

3 Q E A p r - 0 4 O c t - 0 4

A c t i o n I t e m s E x p e c t e d R e s u l t s S t a t u s

E s t a b l i s h F i n a l I n s p C / A F e e d b a c k P r o c e s s R e d u c e e r r o r s O p e n

R e v i s i o n & T r a i n i n g f o r Q C D 1 9 1 , F i n a l I n s p W o r k I n s t r u c t i o n s O p e n

E s t a b l i s h D P P M b y F o c u s F a c t o r y F o c u s o n k e y a r e a s O p e n

N o t e : 5 4 R e t u r n s f o r O c t 2 0 0 4 .3 3 U n i t s d e t e r m i n e d t o b e C u s t o m e r R e s p o n s i b i l i t y o r N o F a u l t F o u n d1 7 U n i t s n o t e v a l u a t e d a s o f t h e d a t e o f t h i s r e p o r t i n g4 U n i t s w e r e d e t e r m i n e d t o b e E a t o n ’ s R e s p o n s i b i l i t yD P P M C a l c . = 2 1 / 6 6 8 5 * 1 , 0 0 0 , 0 0 0 = 3 1 4 1

U n i t s d e t e r m i n e d t o b e C u s t o m e r R e s p . o r N o F a u l t F o u n d n o t u s e d i n c a l c u l a t i o n



P l a n t Q u a l i t y ( C u s t o m e r D P P M ) - L o s A n g e l e s , C AP l a n t Q u a l i t y (P l a n t Q u a l i t y ( C u s t o m e r D P P MC u s t o m e r D P P M )) -- L o s A n g e l e s , C AL o s A n g e l e s , C AM O N T H L Y P E R F O R M A N C E



01 0 0 02 0 0 03 0 0 04 0 0 05 0 0 06 0 0 0

A c t u a l

G o a l

0 . 0 %1 0 . 0 %

2 0 . 0 %3 0 . 0 %

4 0 . 0 %5 0 . 0 %

6 0 . 0 %7 0 . 0 %

8 0 . 0 %9 0 . 0 %

1 0 0 . 0 %






1 T e a m J u n - 0 4 N o v - 0 4

2 T e a m J u l - 0 4 N o v - 0 4

3 Q E A p r - 0 4 O c t - 0 4









Q u a l i t y I n d e x ( C u s t o m e r D P P M ) - L o s A n g e l e s , C AQ u a l i t y I n d e x (Q u a l i t y I n d e x ( C u s t o m e r D P P MC u s t o m e r D P P M )) -- L o s A n g e l e s , C AL o s A n g e l e s , C AM O N T H L Y P E R F O R M A N C E



01 0 0 02 0 0 03 0 0 04 0 0 05 0 0 06 0 0 0

A c t u a l

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2 0 . 0 %3 0 . 0 %

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1 T e a m J u n - 0 4 N o v - 0 4

2 T e a m J u l - 0 4 N o v - 0 4

3 Q E A p r - 0 4 O c t - 0 4









Q u a l i t y I n d e x ( C u s t o m e r D P P M ) - L o s A n g e l e s , C AQ u a l i t y I n d e x (Q u a l i t y I n d e x ( C u s t o m e r D P P MC u s t o m e r D P P M )) -- L o s A n g e l e s , C AL o s A n g e l e s , C AM O N T H L Y P E R F O R M A N C E



01 0 0 02 0 0 03 0 0 04 0 0 05 0 0 06 0 0 0

A c t u a l

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1 T e a m J u n - 0 4 N o v - 0 4

2 T e a m J u l - 0 4 N o v - 0 4

3 Q E A p r - 0 4 O c t - 0 4









M a te r ia l C o s t T a k e o u t -L o s A n g e le s , C AM a te r ia l C o s t T a k e o u tM a te r ia l C o s t T a k e o u t -- L o s A n g e le s , C AL o s A n g e le s , C AM O N T H L Y P E R F O R M A N C E ($ M )

A C T IO N P L A N S

F o c u s A r e a s A c tio n s O w n e r D u e D a teL T A A nnu a lize d s av in g s o f 1 ,0 0 0 ,0 0 0 T .M e n d o z a 4 Q 0 4C o m p e titive B id d ing S ho p A p p ro p ria te C o s t D rive rs T .M e n d o z a O ng o in g


$0.00

$1,000,000.00

$2,000,000.00

$3,000,000.00

$4,000,000.00

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0 .0 %

2 0 .0 %

4 0 .0 %

6 0 .0 %

8 0 .0 %

1 0 0 .0 %

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S u p p lie r Pr ic eEs c a la t io n

D e la y e d Pr o d u c tT r a n s it io n

N e g o t ia t io nF a ilu r e

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M o n th ly M o n th ly P e r fo r m a n c e P e r fo r m a n c e

E x c e e d s G o a lE x c e e d s G o a l

M a te r ia l C o s t T a k e o u t -L o s A n g e le s , C AM a te r ia l C o s t T a k e o u tM a te r ia l C o s t T a k e o u t -- L o s A n g e le s , C AL o s A n g e le s , C AM O N T H L Y P E R F O R M A N C E ($ M )

A C T IO N P L A N S

F o c u s A r e a s A c tio n s O w n e r D u e D a teL T A A nnu a lize d s av in g s o f 1 ,0 0 0 ,0 0 0 T .M e n d o z a 4 Q 0 4C o m p e titive B id d ing S ho p A p p ro p ria te C o s t D rive rs T .M e n d o z a O ng o in g


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$3,000,000.00

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0 .0 %

2 0 .0 %

4 0 .0 %

6 0 .0 %

8 0 .0 %

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S u p p lie r Pr ic eEs c a la t io n

D e la y e d Pr o d u c tT r a n s it io n

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M o n th ly M o n th ly P e r fo r m a n c e P e r fo r m a n c e

E x c e e d s G o a lE x c e e d s G o a l

P r o d u c t i v i t y - L o s A n g e l e s , C AP r o d u c t i v i t yP r o d u c t i v i t y -- L o s A n g e l e s , C AL o s A n g e l e s , C AM O N T H L Y P E R F O R M A N C E







1 1 / 3 0 / 2 0 0 4





60.0%

70.0%

80.0%

90.0%

100.0%

2003 Ja

n

Feb

Mar Ap

r

May Ju

n Jul

Aug

Sep

Oct

Nov

Dec

A c tual

Goal

0 .0 %

1 0 .0 %

2 0 .0 %

3 0 .0 %

4 0 .0 %

5 0 .0 %

6 0 .0 %

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P r o d u c t i v i t y - L o s A n g e l e s , C AP r o d u c t i v i t yP r o d u c t i v i t y -- L o s A n g e l e s , C AL o s A n g e l e s , C AM O N T H L Y P E R F O R M A N C E







1 1 / 3 0 / 2 0 0 4





60.0%

70.0%

80.0%

90.0%

100.0%

2003 Ja

n

Feb

Mar Ap

r

May Ju

n Jul

Aug

Sep

Oct

Nov

Dec

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Goal

0 .0 %

1 0 .0 %

2 0 .0 %

3 0 .0 %

4 0 .0 %

5 0 .0 %

6 0 .0 %

7 0 .0 %


I n v e n t o r y a n d D O H - L o s A n g e l e s , C AI n v e n t o r y a n d D O HI n v e n t o r y a n d D O H -- L o s A n g e l e s , C AL o s A n g e l e s , C AM O N T H L Y I N V E N T O R Y P E R F O R M A N C E ( $ M )


M O N T H L Y D O H P E R F O R M A N C E

$ 0

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I n v . T y p e A c t i o n i t e m s S t a t u s R e s u l t s T o D a t eD e x M K a n b a n , V e n d o r M a n a g e d I n v e n t o r y , A d d i n g a n a d d i t i o n a l 3 0 0 p a r t s t o t h e p r o g r a m

I n p r o g r e s s 1 0 0 K r e d u c t i o n - s l a t e d f o r D e c . 6 t h ' 0 4 .

L e a d - t i m e R e d u c t i o n s O n g o i n g 3 4 0 0 L e a d - t i m e s r e d u c e dO b s o l e t e a n d E x c e s s d i s p o s a l O n g o i n g 1 . 7 M w i t h e x p e c t e d a d d i t i o n a l 2 5 0 K b y y e a r e n d .

W I P R e - a l i g n m e n t o f s c h e d u l e f o r p u r c h a s e d a n d m a n u f a c t u r e d p a r t s f o r y e a r e n d . B r i n g i n o n l y w h a t i s n e e d e d .

O n g o i n g 9 6 4 k m o v e d t o 2 0 0 5 w i t h a n a d d i t i o n a l 2 0 0 k b y y e a r e n d

I n v e n t o r y a n d D O H - L o s A n g e l e s , C AI n v e n t o r y a n d D O HI n v e n t o r y a n d D O H -- L o s A n g e l e s , C AL o s A n g e l e s , C AM O N T H L Y I N V E N T O R Y P E R F O R M A N C E ( $ M )


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I n v . T y p e A c t i o n i t e m s S t a t u s R e s u l t s T o D a t eD e x M K a n b a n , V e n d o r M a n a g e d I n v e n t o r y , A d d i n g a n a d d i t i o n a l 3 0 0 p a r t s t o t h e p r o g r a m

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L e a d - t i m e R e d u c t i o n s O n g o i n g 3 4 0 0 L e a d - t i m e s r e d u c e dO b s o l e t e a n d E x c e s s d i s p o s a l O n g o i n g 1 . 7 M w i t h e x p e c t e d a d d i t i o n a l 2 5 0 K b y y e a r e n d .

W I P R e - a l i g n m e n t o f s c h e d u l e f o r p u r c h a s e d a n d m a n u f a c t u r e d p a r t s f o r y e a r e n d . B r i n g i n o n l y w h a t i s n e e d e d .

O n g o i n g 9 6 4 k m o v e d t o 2 0 0 5 w i t h a n a d d i t i o n a l 2 0 0 k b y y e a r e n d

H e a l t h & S a f e t y - L o s A n g e l e s , C AH e a l t h & S a f e t yH e a l t h & S a f e t y -- L o s A n g e l e s , C AL o s A n g e l e s , C AL o s t W o r k d a y C a s e I n c i d e n t R a t e ( L W C I R )


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R N R D e c - 0 4

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E S P B O S h a s d e v e l o p e d a c t i o n p l a n a c t i o n s t o c o m p l e t e E S P D o n e

B O S t e a m h a s p r i o r i t i z e d E S P e l e m e n t s W o r k k e y i s s u e s f i r s t D o n e

C o r p o r a t e p l a n n i n g t o d e v e l o p t e c h . T r a i n i n g f o r 2 0 0 5 ' C o n d u c t t e c h n i c a l t r a i n i n g C o r p o r a t e p l a n s f o r 2 0 0 5

I n c l u d e E r g o n o m i c s / r e p e t i t i v e m o t i o n s t u d y i m p r o v e e r g o n o m i c s C o r p o r a t e p l a n s f o r 2 0 0 5

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D e v e l o p i n g s a f e t y S O P f o r a l l p r o c e d u r e s A l l p r o c e e d u r e s w i l l i n c l u d e s a f e t yW o r k i n g w i t h p r o d u c t a u d i t

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2003 Ja

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Mar

Apr

May Ju

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I s s u e # R e s p o n s i b l e D u e D a t e

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R N R A p r - 0 5

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R N R D e c - 0 4

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E S P B O S h a s d e v e l o p e d a c t i o n p l a n a c t i o n s t o c o m p l e t e E S P D o n e

B O S t e a m h a s p r i o r i t i z e d E S P e l e m e n t s W o r k k e y i s s u e s f i r s t D o n e

C o r p o r a t e p l a n n i n g t o d e v e l o p t e c h . T r a i n i n g f o r 2 0 0 5 ' C o n d u c t t e c h n i c a l t r a i n i n g C o r p o r a t e p l a n s f o r 2 0 0 5

I n c l u d e E r g o n o m i c s / r e p e t i t i v e m o t i o n s t u d y i m p r o v e e r g o n o m i c s C o r p o r a t e p l a n s f o r 2 0 0 5

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60.0%

70.0%

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CSUN Engineering Management Six Sigma Quality Engineering Week 2 Introduction to Six Sigma Macro...

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