Lean Sigma Basics

ISE 2400

Work Design Course

Intro to Integrated

LeanSigma

D. Scott Sink

sink.22@osu.edu

Fall 2014

How Firm Thy

Friendship…

Process Or

Product?

Does

Process

Exist?

Measure

Analyze

Improve

Control

Goals

achieved with

existing

process?

Measure/

Concept

Design/ Explore

Detailed

Design/

Develop

Optimize/

Implement

Verify

Classic DMAIC DCDOV/

DMEDI

Process

Yes No

No

Yes

Define Define

Development

Or Problem

Solving?

Identify

Design

Optimize

Validate

Measure

Analyze

Improve

Control

IDOV Augmented DMAIC

Product

Development

Problem

Solving

Tools,

Toll

gate

content,

etc.

Goals

achieved

with existing

design?

No

Yes

(System, subsystem or part)

Tools,

content,

etc.

Define

Integrated Lean and Six Sigma:

The disciplined use of data, facts, ISE

principles and methods, and disciplined

‘process improvement roadmaps’ to

improve the effectiveness, quality,

efficiency, and productivity of key

processes in organizations.

Lean Sigma Foundations Extremely Essential Foundational Knowledge

you will need as an ISE and for Capstone

• Process Documentation / Problem Solving tools / Servicing / Balancing

(Chap 2)

• Operation Analysis (Chap 3)

• Lean / Six Sigma / Reengineering / etc.

Manual work design (Chap 4)

• work, workplace, equipment, environment, and tool design (Chap

5,6,7)

• time study, performance rating, allowances (chap 10,11)

• predetermined time systems (Chap 13)

• work sampling (chap 14)

• wage payment and incentive plans (Chap 17)

• training and learning curves (chap 18)

• proposed method implementation (chap 9)

3

Education and Professional Experience

• The Ohio State University, BSISE, 1973

• Eastman Kodak, Service Systems Engineer, 1973-1975

• The Ohio State University, MSISE and Ph.D., 1978

• Oklahoma State University, Associate Professor, 1978-

1984

• Virginia Tech, Full Professor, 1984-1997

• VP, Business Process Improvement (BPI), Exchange

Solutions (2000-2004) and MDS (2004-2007)

• Executive Consultant for/with David Poirier at Loblaws,

HBC, Noske Kaeser, Sears Canada (1991-2012)

Areas of Interest Business Process Reengineering, Large-Scale Organization Transformations, Performance

Measurement/Analysis/Improvement, Lean Sigma, Quality and Productivity, Strategic Performance Improvement Planning

(strategy and policy deployment), Change Leadership and Management, Management Systems Engineering

Scott Sink rejoined OSU as an Executive in Residence in the Fall of 2007. Scott spent 19 years in academia teaching, writing,

consulting and leading Quality and Productivity Centers. He ventured out into the private sector in 2000 and led Business

Process Improvement programs at Exchange Solutions (Boston/Toronto) and MDS (Toronto). He successfully launched a

best in class Lean Sigma program at MDS (globally) from 2004-2007. Scott served as President of IIE in the early 90’s and

has been active with IIE his entire career.

D. Scott Sink

Integrated LeanSigma Certification Program Director,

Integrated Systems Engineering, The Ohio State University

Academic / Institutions Industry/Consulting

My Experience and Data Base

Additional Experience/Data Base—Council on

Industrial Engineering 2006 to present

Historical and Current Context for ISE

and Integrated LeanSigma

Lean Sigma Foundations Let’s put some context on Lean Sigma

and Industrial Engineering

2014

ISE and Sustainable Operational

Excellence (cut to quick)

It’s not whether you are improving, It’s how fast and how good: I can’t think of

an organization today that isn’t very challenged to improve performance

(effectiveness, efficiency, quality, productivity, quality of work life, innovation,

profitability, sustainability) and isn’t looking to improve business processes and lower

level processes and systems to do that.

Integrated LeanSigma: Far and away, the most common and pervasive approach

to do this is some version of Integrated LeanSigma (from a methodology

perspective).

ISE is rapidly being seen as the best foundation for ILSS: 10 years ago I think

that IIE and ISE’s thought we missed the boat on all the Lean and Six Sigma stuff,

but now I think that has turned around and many realize ISE’s are the thought

leaders on it and our training is totally aligned with the requirements to do Integrated

LeanSigma, Continuous Improvement, Operational Excellence, etc.

ILSS is the methodology of choice: More Specifically the DMAIC

Roadmap/methodology or some version of it has emerged as the industry standard

for how to go about process improvement.

2014—Current State

ILSS has broadened its scope, breadth of coverage, industry wise:

• Finance and Insurance: Huntington, Chase, Cap One, Grange,

Nationwide, Wells Fargo…

• Health Care: OSU Med Center, Ohio Health, Childrens

• Government: Lean Ohio

• Retail: Donato’s, Bob Evans

• Production, Manufacturing:

Worthington Industries,

Exel, Sherwin Williams,

Mettler Toledo, Columbia Gas

• Service Provider: Columbia Gas,

United Airlines…

• EVEN OSU: OpEx@OSU,

Student Life, PRSM

Lean Sigma Foundations Typically an organization will view Lean Sigma as a means to

an end and an key component in their quest for Sustainable

Operational Excellence

Outcomes Process

Weekly EMT teleconferences

Monthly business reviews

Disciplined annual plans

Action oriented decision making

Tighter accountability

Customer responsive

Business Performance Reviews

Better understanding of “A”

performers; enriched career path

Expansion of variable compensation

opportunity

Alignment of shareholder and

management incentives

Biannual talent reviews

New executive compensation plan

Talent Management

Lean Sigma Roadmaps and Toolkit

Compliance Programs (EHS, Quality,

etc.)

LeanSigma Practitioner Development

Balanced Improvement Portfolios

Standard approach across the Enterprise

Building global quality competitiveness,

productivity improvement, process and

cost efficiency, compliance and assurance

Simplify processes

Customer responsive

Operational Excellence

Customer/ Competition/ Capital

Business unit/Corporate strategy

Detailed industry analysis

Customer value led process

Longer range growth agenda

Focused R&D investments

Capital matched to growth

Lean Sigma Foundations

Enhanced Behavior

1.0

Ideal

27x

Increased Geog. / Segment Scope

Greater Longevity

Number of Customer Relationships

Average Customer

Relationship Profitability

Per Year

Average Customer

Relationship Duration

1x

0.2x

Keep the End-game in sight: Growing

Franchise Value

1.0

Ideal

1.0 Ideal

Lean Sigma Foundations

Increase

Franchise Potential

Geographic Coverage /

Offerings Provided /

Served Segments / Etc.

Optimize

Relationship Investments (Appropriate / Adequate /

Efficient / Effective)

Value Exchange

Management

Improve

Investment Delivery (Flexibility /

Cost / Quality)

Productivity/ Quality / Capability

& Capacity/ Consistency/

Efficiency/ Global

Competitiveness

Franchise Value Improvement

Critical Levers

1x

POSITIONING STRATEGY RESOURCE ALLOCATION EXECUTION

50x

10x

25x

First-Year Engineering Program

VALUE

Improving Standardization and Discipline and Control with day to day work practices

… with a focus on fixing the processes as a way to improve the System

Customer Shareholder

Is willing to pay for

Requirements to attract

investment for growth

TO THE

THROUGH BUSINESS PROCESS ENGINEERING

ILSS Overarching Principle: Value is Defined by the Customer

Employee Business

Requirements to Survive and Thrive

Attracts and Retains best

of best

Lean Sigma Foundations

2 October 2014 14

What is LEANSigma?

What does Lean Mean? • The core idea is to maximize customer value

while minimizing waste. Simply, lean means

creating more value for customers with fewer

resources.

– Focus is on the reduction/elimination of

waste

– Approach and methods originated in the

discipline of Industrial Engineering in the US

in the 20’s and 30’s and were perfected by

Toyota and others

– Apply to any process in a business

– An ‘inclusive’ approach in that it enables and

empowers employees doing the work to

identify and make improvements.

Over-Processing Skills

TIM

WOODS

Lean Sigma Foundations

16

What is LeanSIGMA?

What does Six Sigma Mean? Six Sigma at many organizations simply means a measure

of quality that strives for near perfection. Six Sigma is a disciplined, data-driven approach and

methodology for eliminating defects (driving toward six standard deviations between the mean and

the nearest specification limit) in any process – from manufacturing to transactional and from

product to service.

The statistical representation of Six Sigma describes quantitatively how a process is

performing. To achieve Six Sigma, a process must not produce more than 3.4 defects per million

opportunities. A Six Sigma defect is defined as anything outside of customer specifications. A Six

Sigma opportunity is then the total quantity of chances for a defect

The Focus is on eliminating or reducing variation

– Foundational methods/tools are in applied statistics and the field of Quality

Management and Assurance

– Walter Shewart and Dr. Edwards Deming are founding thinkers in SPC which

evolved to Six Sigma

– Creates predictable outputs from processes

Join our Student

Chapter?

Lean Sigma Foundations

2 October 2014 17

Types or Sources of Process Capability Problems

(e.g. undesired variation) that DMAIC targets

Supplier Variation

Too much, too little, poor

quality, change in quality

No Visible

Measurement/

Management System

Workers have no visibility

for process performance

Worker Training

Worker

Bad habits get passed on

Voice of Customer

Weak specification of

customer

requirements/demands

Lack of Standardization

No SOP’s, no method

consistency, no work standards

Unforeseen Events

Equipment failure,

accidents, absences,

environmental conditions

Paradigms/Habits

People locked into a way

of doing something

because it’s always been

done that way

Lack of Training

Workers have not been

trained to do the job

Lean Sigma Foundations Why combine Lean and Sigma?

Days to delivery

Nu

mb

er

of d

eliv

erie

s

Average = 5 days

Large variation

Days to delivery

Nu

mb

er

of d

eliv

erie

s

0 10

Average = 5 days

Small variation

Six Sigma alone

Days to delivery

Nu

mb

er

of d

eliv

erie

s

0 10

Average = 3 days

Large variation

Lean alone

Days to delivery

Nu

mb

er

of d

elive

rie

s

0 10

Average = 2 days

Small variation

Integrated LeanSigma

Lean Sigma Foundations Fundamental Model in ILSS is basically

Scientific Method based

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

• Y

• Dependent

• Defect

• Effect

• Key Process Outcome

• Monitor

• X1 . . . XN

• Independent

• Root Cause

• Key Lever or Process Variable

• Control

To get results, should we focus our behavior on the Y or X?

f(X) Y=

LeanSigma requires a shift toward more discipline managing the X’s

Lean Sigma Foundations The Business Case is then the extension of

improving the Y to the Desired Outcomes

• Process Y’s

• Dependent

• Defect

• Effect

• Key Process Outcome

– Best in Class Process Capability

• Monitor

• X1 . . . XN

• Independent

• Root Cause

• Driver

• Key Lever or Process Variable

• Control

To get the sustainable results we want we measure and manage the X’s which Drive

the Process Y’s which Drive the Business Y’s

X’s Process

Y’s Business

Y’s

• Growth of Franchise Value

– Positioning

• Blended Growth Rate

– Best in Class Cost Structure

• Investor Satisfaction

• Employee Value Exchange

• Customer Success

How do we Translate & Measure This?

Customer

Y’s

Lean Sigma Foundations Different Roadmaps/Methods are involved

Process Or

Product?

Does

Process

Exist?

Measure

Analyze

Improve

Control

Goals

achieved with

existing

process?

Concept

Design

Detailed

Design

Optimize

Verify

Classic

DMAIC

DCDOV

DMEDI

Process

Yes No

No

Yes

Define Define

Development

Or Problem

Solving?

Identify

Design

Optimize

Validate

Measure

Analyze

Improve

Control

IDOV Augmented

DMAIC

Product

Development Problem

Solving

Tools,

Toll gate

content,

etc.

Goals

achieved

with existing

design?

No

Yes

(System, subsystem or part)

Tools,

content,

etc.

Define

Lean Sigma Foundations LeanSigma Infrastructure (Simplified)

Yellow Belts

ILSS Certification Program

Overview

Program Goals

Why Students do this and what they get out of it

Program Features, Requirements, Sequence Plan

PROGRAM GOALS

BSISE w/ ILSS Certification and/or Certificate

• Stand out: differentiate candidates who take the BSISE to another level before graduating

• Season: accelerate readiness for real world beyond (significantly) what internships and

co-ops create, ready to perform and compete in best of best with best of best.

• Success: create an experience of real world contribution with capstone, make a

difference in capstone, learn how to create real results in a timely fashion. Really

understand how all your ISE courses come together and how to reduce things to practice in

the real world.

• Discipline and Accountability: create more personal and professional mastery with

program and project management, relationship management, time management, change

management.

• Confidence & Communication: create significantly improved professional and technical

communication skills, create self confidence with all levels and types of leaders, managers,

employees.

Knowledge and Skill

Gain

Knowledge and Skill Gain

BSISE:

Microsoft Excel

Microsoft Access

Microsoft Powerpoint

Visual Basic / VB.net

Arena

Minitab (Light)

OR Core

HFE Core

Prod & Mftg Core

Eng Econ basics

Project management

basics

…….

1 – 3 Semesters later: Existing Knowledge +

• How all the core fits together

• how to actually use the principles and methods and tools

• how to bring discipline to fixing processes and systems

• how to work with real teams of different people to improve something

• how to do program and project management on one you own

• etc. See next slide for another view

Process Improvement &/or Design Methodology Pick Right Project

CONTROL and/or VERIFY

IMPROVE and/or OPTIMIZE

DEFINE

ANALYZE and/or DETAILED DESIGN

MEASURE and/or CONCEPT DESIGN

• Current State Assessment

2400: Work

Design

2040/3800:: Eng Econ

& Proj Mgmt

3470: Stat

2500/3400: Mftg Sys

Eng.

3600/3700: HFE

5100: Stoch Proc

& Sim

3200/3210: Optimization

4120: QC & DOE

• Business Case Development • Project Planning • Chartering

• Exploratory Data Analysis

• ERP analysis

• Stress and Strain Assessments •

• Framing the Optimization Opportunity, deciding when to Optimize

• Building the Model

• Work Measurement • Current State Capabilities • •

• Efficiency, flow, cost, safety, productivity analysis

• Standard Work • Problem Solving

Tools

• Mistake Proofing • Process

Documentation

• Cost Breakdown Structure • Program and Project

Measurement

• Cash Flow Analysis • Net Present Value

• Evaluation Studies

• Exploratory Data Analysis • ANOVA

• Confirmatory Data Analysis: Hypothesis Testing

• Hypothesis Testing

• Production System Assessment

• Economic Order Quantitty

• Line Balancing • Inventory Control • Facility and

Equipmtnet Layout

• Production Control

• Design Principles • Initial Assessment Tools for

work, environment, human

• Fault Tree Analysis • Stress and Strain

Analysis

• Displays and Controls • H/C Interface

• Training Plans

• Network Analysis • Modelling

• Linear Programming • Linear, Sensitivity Analysis, Discrete, Dynamic, Nonlinear Optimization

• Resiliency evaluation

• Quality Policy and Principles

• Stakeholder Analysis • Communication Plan • Voice of Customer (QFD)

• Team Development • Project Start-up

5810: ILSS

4900/5811-12:

Capstone

• Data Model/Input • Shapes of Distributions • Queueing Theory

• Output Analysis • Analyze and Compare

• Ongoing Model application and refinement

• Statistical Process Control • Model Design and Factor

Screening

• Reliability Analysis • Sampling Plans

• PDCA

• Measurement Plan • Value Stream Mapping

• FMEA • Value Stream Analytics

• Kanbans/Buffers • Mistake Proofing • Change Management

• Visual Management Systems

• Sustainability

• Learning how to get data/facts and then analytic practice

• Extracting information form the measurements

• Design Practice

• Developing Solution Elements

• Piloting

• Evaluation Studies • Control Principles and

Practices

The OSU ISE view (one

view)

Analytics • Exploratory Data

Analysis

• Confirmatory Data

Analysis

• Starts with the

modeling of the

problem and

formulation of your

fundamental

‘research

questions’ and

hypotheses.

Greatness is a lot about disciplined people (thought,

word, deed)—Jim Collins

Disciplined about what?—Peter Senge

Systems & Statistical Thinking

Personal Mastery Mental Models Building Shared

Visions Team Learning

Get the data:

1. Import functionality from a variety of sources (SQL, Oracle/SAP,

ODBC) into excel and access.

Sort and organize the data:

2. Advanced Sorting, filtering, moving large data sets. Creating large

access databases with proper relationships.

Cleansing the data:

3. Cleaning the data (removing outliers, zeros, etc) in excel and

Minitab. Gauge analysis.

Manipulating the data:

4. Advanced excel and Access functionality (Vlookup/Lookup, sumif,

countif), smart ranges.

5. Pivot tables, pivot analysis,pivot charts. Minitab sorting.

Analyzing the data

6. Excel financial equations (net present value, ROI).

7. Excel and Minitab regression analysis, hypothesis testing, process

capability, run and xbar/r testing and creation.

Data automation

8. Excel macros, Visual Basic, access macros and Basic SQL statements.

Company tools and sharepoint:

9. Basic understanding of file servers, basic sharepoint administration, uploading,

sharing files.

Dashboard creation and export

10. Excel and access advanced charting and graphing with automatic

updates. Easy exporting functionality to .csv, .xls, .txt.

Current state picture (for our supply chain)

• The people you put ‘above the line’ will make or break your analytics program

• There are some great, innovative, & truly modern tools ‘above the line’

Feature extraction – JMP, SAS, S+, R for basic statistics

– Emerging apps in ‘big data’ – Hadoop, Apache, etc.

Knowledge extraction – In supply chain, this is not about the

software tool, but rather smart people

– In our experience, people are best at spotting patterns – so far …

Visualization – Great tools: Tableau, BOBJ, MS BI

– We believe strongly in the investment in software and training here

– At the end of the day, this is what makes the work memorable …

S. Cunningham; Intel Corporation; 2013

WHY STUDENTS CONSIDER the

ISE and ILSS Path:

Want to be challenged, want to be the best they can be

Placement Success is significant:

> 95% of ISE/ILSS candidates had jobs before they graduated since 2007 (n = 250) (~ 80% in ISE overall and 70% in CoE)

• Demand is strong and growing:

Skillful process improvement specialists are hard to find

Industry coverage is as broad as it has ever been

Est. shortfall of 140-190,000 people with analytics expertise, this program isn’t MS in Analytics but it is foundationally solid for move into this field.

• Bridge to challenging and rewarding career and also launch accelerator for many

• Get more value for your (or parents) money while here in ISE and OSU

What will ensure you get the best job and

succeed rapidly?

Answer: Putting all the pieces together before you graduate!

Apply to take ISE 5810 and then 5811-12 for Capstone

Personal and

Professional

Mastery:

Team work and leadership

Habits of Highly Effective

People

Learning how to learn better

Change Leadership and

Management

Full Potential Performance

Systems and

Statistical Thinking:

Operational Excellence

End2End Value Stream

Mapping and Analysis

Improve your skills with

Statistical Process Control

Exploratory and Confirmatory

Data Analytics

How many of your core ISE

courses come together to

improve systems and

processes

Pragmatic

Modeling of

Problems and

Projects

Integrated Program

Management

Modeling and

Execution Approaches

Extensive Case

Examples from a wide

variety of

organizations

Opportunity to add an

Integrated LeanSigma

Certification and a best

in class Internship to

your BSISE

Green Belt Certification on top

of your Black Belt Foundation

Course Certificate (5810)

5811-12 is an unpaid

internship and will

significantly boost your

resume

See Kristen or Dr. Sink for more….

At-cause

At-effect

Fix the System

Fix the Process

Fix the Problem

Do Nothing

Enroll Others

Sabbotage

Best case

Worst case Best case

Worst case

FULL-TIME PLACEMENT

Number of Candidates through Program: ~250

Number of Graduates Seeking Employment: current ‘wave’ of 25

Students with Offers prior to graduation: >95%

Median Starting Salary: $50,000 with bonus system to $75,000 (consulting) (highly competitive in general)

Percent of Offers Including a Signing Bonus: don’t know

Average Signing Bonus: don’t know

Placements since 2007 (illustrative):

Discover

Boeing

John Deere

Key Bank

Grange Insurance

Timpken

Alcoa

Deloitte Touche

Accenture

• General Mills

• Unilever

• Nestles

• Jabil

• Whirlpool

• GE Healthcare

• GE Aviation

• Kraft

• Walmart

• Walt Disney

• Halliburton

• Cap One

• Chase

• Anheuser Busch

• Lockheed Martin

• Cameron

• Poirier Group

• Lincoln Electric

• Hyland Software

•

PROGRAM FEATURES

Highly applied and comprehensive curriculum:

Integrates management systems engineering, real world business issues and learnings, data and fact based focus, and how to apply ISE core

Descriptive, predictive and prescriptive analytics Not just coursework – industry projects, extracurricular projects, experiential Labs and Simulation,

and internships

Exposure to a range of tools, principles, methods: Minitab, Value Stream Mapping and Analytics, Swim Lane Flow Maps, Failure Mode and Effect

Analysis, Design of Experiments, Kanban and buffer design and inner workings, Visible measurement systems, Applied Hypothesis Testing, Design for LeanSigma, Exploratory Data Analysis, etc, etc.

Personal and Professional Mastery Boot camp prior to first semester

Blended Training Web-based core curriculum, reduction to practice and experiential labs, meetings are

focused on reduction to practice not traditional classroom Real world case studies from our extensive base of over 250 projects in Columbus but also

around the World

Get higher Levels of Knowledge and Skill

…This is how the program is designed…

Core

ISE 5811-12 or 4900

34 02.10.2014

ISE 5810

PRACTICUM AND

CAPSTONE DESIGN

Company Liaison

ISE Coach Candidate

• Practicum – 5810 (limited to 64, 2 sections)

• Certification Capstone/Internship – 28 weeks (2 semesters)

• Limited to < 32 candidates a year

• Goal is to have the Summer Paid Internships be integrated (100%)

Core Team:

1. Scopes the project

2. Creates expanded core team of key stakeholders with sponsor

3. Completes Define and Measure stage and holds milestone review

4. Continues Measure and Analysis, stage gate meeting

5. Migrates to Solution Element Design and Development, stage gate meeting

6. Test and Evaluates Solution Elements

7. Rolls out, evaluates for sustainability and confirms business case.

ISE 5811-12 Integrated LeanSigma

Certification Capstone & Unpaid Internship 2 Semester, Unpaid Internship with company in Columbus area with

your own project—Best internship Experience you can get!

Life Sciences,

Health Care &

Social Services

See Dr. Sink for more….

Production, Manufacturing, &

Process Industries

Retail & Food

Processing

Services

Financial &

Other

Transactional

and Shared

Services

Outstanding Central Ohio Summer

ILSS related Internships for

Su 15—ACT NOW!!!

- 02.10.2014 - 37

• Outstanding, best in class Paid,

Summer Internships right here in

Columbus area!!

• Opportunity to earn LeanSigma

Certification if you couple with ISE

5810!!

• Coaching during Internship provided

by Dr. Sink and, of course, sponsor.

• All view these as potentially leading to

full time offers.

• See Dr. Sink (sink.22) for more

information.

• I’ve forwarded Max and Chynna’s

resumes to this point

Application Process

Confirm that the Management Systems Track is right for you and

that you intend to do the ILSS (at least 5810 Sp 15 course) program.

• Do you homework, talk to your peers, talk to your parents, talk to candidates in

5810 and/or 5811 now

• go in eyes wide open

send resume and times to meet to me, Dr. Sink ( sink.22 )

• On or before 17 Oct.

we’ll meet and I’ll decide if the ‘fit’ is appropriate to forward on to

one or more of the ILSS partners.

• On or before 31 Oct

I’ve pushed partners to make decisions on or before mid November

8-5-14 ILSS MS program structure.docx

9-20-13 Industrial and Systems Engineering TE

Packet.pdf

Standard 4 year path model

Man

ag

em

en

t S

yste

ms

:

Inte

gra

ted

Lean

Sig

ma

Cu

rric

ulu

m

Fall Spring Summer Fall Spring

Integration and Practicum

with ISE 5811-12 Case

Studies

Internship

with Industry

Collaborator

/Partner

Reduction to

Practice with

ILSS

methods and

tools

(Potentially

Green Belt

Certification)

Continued Practicum of ILSS

Case Studies

ISE 3200—Linear

and Integ

Programming

ISE 3210—Non-

Linear

Programming

ISE 4100—Stoch

Modeling &

Simulation

General Educ

ISE 3600—

Workplace Ergo

ISE 3800—Project

Management

ISE 5811—

Certification

Capstone

ISE 5812—

Certification

Capstone

ISE 2500—Intro to

Manf Engineering

ISE 4120—Quality

Control & DOE

Tech Elec Tech Elec

ISE 3700—

Cognitive Systems

Eng.

ISE 3400—Prod

Plan & Fac Design

Tech Elec Tech Elec

General Educ. ISE 5810—ILSS

Foundation

Course (BB)

General Educ Tech Elec

Analyze & Improve Tollgate

Ohio Health Script Project

January 24th, 2013

Andrew Wharton LSS Green Belt Candidate

Lead Time Reduction Project

11/26/2013

Integrated Systems Engineering:

We Engineer Value

Measure/Analyze

Tollgate

Jehan DeVitre – Project Leader and Belt Candidate

Nathan Andridge – Project Sponsor

Dr. Scott Sink – Coach

Design Tollgate

Sutphen Corporation 02/13/14 ?

Jared Walter MBB Coach: Dr. Sink

Project Sponsor: Jeff Bonn

Central Warehouse Design

and Implementation Project

Labor Deployment Project

Team Lead: Trevor Simes

Project Sponsor: Travis Howard

Coach/Mentor: Scott Sink

Ai Tollgate

1/27/14

Pre-Measure TG & Status Update Meeting

Increasing the Daily

Percentage of Policy

Requests completed by

Underwriters in the

Commercial Complete

Unit

Sponsor: Amy Tomaszewski

Champion: Dan Guveiyian

Team Leader: Phil Blower

Green Belt Candidate: Nathan Rohyans

D M A I C Lean Six Sigma – Tollgate Review

Jared Frederici – Project Leader and Belt Candidate

Chad Gunsch – Project Sponsor/VSO

Scott Sink – Project Champion/MBB

46

Shipment Routing Optimization for Valley Stores: A Pilot Project for Kroger GLRDC

DEFINE Tollgate

Date: 7/16/2009

D M A I C Lean Six Sigma – Tollgate Review

Voice of the Customer (Internal - Store) – Needs right amount of product delivered within delivery window at the right quality level. Reduced delivery window = desirable. More frequent shipments = better in stock-position/product visibility.

Voice of the Customer (External - Shopper) – Needs product to be available – no shortages.

Shortages = potential for decreased market share and loss of goodwill Voice of the Business (Dist. Center) – Cut transportation costs – continually lean out operations to

reduce wastes of inefficient routing.

47

Voice of Customer vs.

Voice of Business

Maintain Balance Between:

Delivery Frequency / Schedule Hitting / Reducing Delivery Window Efficient Routing / Transport Costs.

CTQC Determination

D M A I C Lean Six Sigma – Tollgate Review 48

VOC Primary (Y)’s

• Primary Metrics:

OTD %

Avg. Mileage bet. Stops

Total Valley Trips Made

Total Cost

Avg. Truck Cube

D M A I C Lean Six Sigma – Tollgate Review

• Our Primary Concern – Is the interception and creation of truck routings efficient and how can we improve these routings to our

valley stores.

49

SIPOC Map

• Secondary Concerns – Cross docking Peyton’s/Bread Products.

• Actual directional routings to and from valley stores.

• Cube Utilization and its effect on trips needed to the valley.

D M A I C Lean Six Sigma – Tollgate Review 50

Initial Metrics and Business Case

Current State Potential Future State Avg. Cost / Trip $476.94 Estimated Avg. Cost / Trip $476.94

Monthly Average # Trips to Valley Stores 277.60

Monthly Average # Trips to Valley Stores 237.60

Average Monthly Cost $132,399.86 Average Monthly Cost $113,320.94 Annualized Total Cost $1,721,198.16 Annualized Total Cost $1,473,172.27

*Formal High Level Business Case

Metric Current Potential % Change

Average Monthly Transportation Cost $132,399.86 $113,320.94 14.4%

Average # Miles Driven Monthly 82740 79360 4%

Average Mileage Between Stops 19 10 46.2%

Average Monthly Number of Trips to the Valley 278 238 14.4%

Average Daily Number of Trips to the Valley 10 8 19.3%

Average Truck Utilization (Cube) 1417 1600 14%

Initial Metric Summary

Potential Financial Savings

Potential for $248,000 Annual Savings

Upwards of $3.2 Million if Applied to All Stores in Service Region

D M A I C Lean Six Sigma – Tollgate Review 51

From-To / Important Dates

Current State:

• Under utilization of trailer space (Average cube = 1417)

• Inefficient routings going between valley stores – Avg. mileage between stops = 19 miles

• More round trips to valley than necessary given store demand

• High variability in routing method/structure

Potential Future State

• Drive truck utilization to upwards of 1600 cube

• Drive down average mileage between stops to 10 miles

• Appropriate delivery schedules for each store • Standardize a toolset/method for strategic routing that can be applied to all regional stores

DEFINE Phase

MEASURE Phase

ANALYZE Phase

September 14th, 2009 June 22nd, 2009

06/22/09

07/10/09

08/7/09

09/14/09

IMPROVE Phase

IMPLEMENT Phase

CONTROL Phase

REALIZE Phase

MAI

ICR

www.smiths-medical.com © 2009 by Smiths Medical: Proprietary Data

Reduction of Flash in Fluid Path

Stopcock A934LG2 and A921G2

Plug 400-060 and Body 350-168

Cody Havaich and David Rossi

Measure Tollgate

November 16th, 2009

© 2009 by Smiths Medical: Proprietary Data

Measurement System

This is the area measured

ABOVE the fluid path. The

inner wall is measured.

This is the area measured

BELOW the fluid path. The

inner wall is measured.

Plug and Body diameter and roundness are measured to

30 thousandths of an inch above and below fluid path.

This is the area measured

ABOVE the fluid path. The

outer diameter is measured.

This is the area measured BELOW

the fluid path. The outer diamter is

measured.

Circularity is measured by

comparing 4 distances

across the diameter.

D2

D3

D1

D4

EXAMPLE:

D1 = .0010, D2 = .0009,

D3 = .0008, D4 = .0007

D1 – D4 = .0003 = Ddelta max

The largest delta is used for

the circularity measurement.

© 2009 by Smiths Medical: Proprietary Data

Process Capability – Plug 400-060

14121086420

LB USL

LB 0

Target *

USL 15

Sample Mean 7.85938

Sample N 64

StDev (O v erall) 1.67016

Process Data

Pp *

PPL *

PPU 1.43

Ppk 1.43

C pm *

O v erall C apability

PPM < LB 0.00

PPM > USL 0.00

PPM Total 0.00

O bserv ed Performance

PPM < LB *

PPM > USL 9.54

PPM Total 9.54

Exp. O v erall Performance

Above circularity all cavities 49-56

14121086420

LB USL

LB 0

Target *

USL 15

Sample Mean 6.26563

Sample N 64

StDev (O v erall) 1.72049

Process Data

Pp *

PPL *

PPU 1.69

Ppk 1.69

C pm *

O v erall C apability

PPM < LB 0.00

PPM > USL 0.00

PPM Total 0.00

O bserv ed Performance

PPM < LB *

PPM > USL 0.19

PPM Total 0.19

Exp. O v erall Performance

Below circularity all cavities 49-56

4062405640504044403840324026

LSL USL

LSL 4025

Target *

USL 4066

Sample Mean 4037.84

Sample N 64

StDev (O v erall) 2.80713

Process Data

Pp 2.43

PPL 1.53

PPU 3.34

Ppk 1.53

C pm *

O v erall C apability

PPM < LSL 0.00

PPM > USL 0.00

PPM Total 0.00

O bserv ed Performance

PPM < LSL 2.38

PPM > USL 0.00

PPM Total 2.38

Exp. O v erall Performance

Above diameter all cavities 49-56

4062405640504044403840324026

LSL USL

LSL 4025

Target *

USL 4066

Sample Mean 4048.64

Sample N 64

StDev (O v erall) 2.88052

Process Data

Pp 2.37

PPL 2.74

PPU 2.01

Ppk 2.01

C pm *

O v erall C apability

PPM < LSL 0.00

PPM > USL 0.00

PPM Total 0.00

O bserv ed Performance

PPM < LSL 0.00

PPM > USL 0.00

PPM Total 0.00

Exp. O v erall Performance

Below diameter all cavities 49-56

14121086420

LB USL

LB 0

Target *

USL 15

Sample Mean 3.9375

Sample N 32

StDev (O v erall) 1.07576

Process Data

Pp *

PPL *

PPU 3.43

Ppk 3.43

C pm *

O v erall C apability

PPM < LB 0.00

PPM > USL 0.00

PPM Total 0.00

O bserv ed Performance

PPM < LB *

PPM > USL 0.00

PPM Total 0.00

Exp. O v erall Performance

Below circularity all cavities 1-8

14121086420

LB USL

LB 0

Target *

USL 15

Sample Mean 4.8125

Sample N 32

StDev (O v erall) 1.92501

Process Data

Pp *

PPL *

PPU 1.76

Ppk 1.76

C pm *

O v erall C apability

PPM < LB 0.00

PPM > USL 0.00

PPM Total 0.00

O bserv ed Performance

PPM < LB *

PPM > USL 0.06

PPM Total 0.06

Exp. O v erall Performance

Above circularity all cavities 1-8

40564052404840444040403640324028

LSL USL

LSL 4025

Target *

USL 4056

Sample Mean 4037

Sample N 32

StDev (O v erall) 2.67606

Process Data

Pp 1.93

PPL 1.49

PPU 2.37

Ppk 1.49

C pm *

O v erall C apability

PPM < LSL 0.00

PPM > USL 0.00

PPM Total 0.00

O bserv ed Performance

PPM < LSL 3.66

PPM > USL 0.00

PPM Total 3.66

Exp. O v erall Performance

Below diameter all cavities 1-8

40564052404840444040403640324028

LSL USL

LSL 4025

Target *

USL 4056

Sample Mean 4036.44

Sample N 32

StDev (O v erall) 3.14117

Process Data

Pp 1.64

PPL 1.21

PPU 2.08

Ppk 1.21

C pm *

O v erall C apability

PPM < LSL 0.00

PPM > USL 0.00

PPM Total 0.00

O bserv ed Performance

PPM < LSL 135.71

PPM > USL 0.00

PPM Total 135.71

Exp. O v erall Performance

Above diameter all cavities 1-8

Mold #4018 (Cavities 49-56)

• Acceptable variation in process

• < 10 Defects Per Million

Mold #4030 (Cavities 1-8)

• Acceptable variation

• < 140 Defects Per Million

Mold #4019 (Cavities 57-64)

• Below Diameter shows PPM Total of 22,000

• The Above Diameter & Above/Below Circularity are Acceptable

• This mold is yet to be revalidated 40564052404840444040403640324028

LSL USL

LSL 4025

Target *

USL 4056

Sample Mean 4049.07

Sample N 30

StDev (O v erall) 3.44347

Process Data

Pp 1.50

PPL 2.33

PPU 0.67

Ppk 0.67

C pm *

O v erall C apability

PPM < LSL 0.00

PPM > USL 0.00

PPM Total 0.00

O bserv ed Performance

PPM < LSL 0.00

PPM > USL 22032.39

PPM Total 22032.39

Exp. O v erall Performance

Below Diameter - All Cavities 57-64

© 2009 by Smiths Medical: Proprietary Data

Measurement System Analysis – Gage R&R

Experiment Parameters

• Attribute Agreement Analysis

•16 Samples

• 9 Appraisers & 1 Expert

• 2 Trials under same conditions

• Each appraiser performs

experiment in their normal

environment under normal

conditions

• Accept/Reject based on FFP

Only

• Analyze Results

© 2009 by Smiths Medical: Proprietary Data

Measurement System Analysis – Gage R&R

987654321

100

80

60

40

20

0

Appraiser

Pe

rce

nt

95.0% C I

Percent

987654321

100

80

60

40

20

0

Appraiser

Pe

rce

nt

95.0% C I

Percent

Date of study: 11/5/09

Reported by: Cody Havaich & David Rossi

Name of product: High Flow Stopcocks

Attribute Agreement Analysis

Within Appraisers Appraiser vs Standard

On average, the appraisers

agree with themselves 77%

of the time across the 2 trials

On average, an

appraiser agrees

with the Expert

32% of the time!!!

Appraiser Agree w/

Self

Agree w/

Expert

1 62.5% 18.75%

2 81.25% 31.25%

3 81.25% 43.75%

4 68.75% 25%

5 93.75% 37.5%

6 75% 12.5%

7 87.5% 18.75%

8 50% 37.5%

9 93.75% 68.75%

© 2009 by Smiths Medical: Proprietary Data

Measurement System Analysis – Gage R&R

Sample # Expert % Agreement

1 Accept 50%

2 Reject 28%

3 Accept 22%

4 Accept 33%

5 Accept 44%

6 Reject 33%

7 Reject 50%

8 Accept 56%

9 Accept 78%

10 Accept 67%

11 Accept 83%

12 Accept 39%

13 Accept 44%

14 Accept 22%

15 Reject 22%

16 Accept 33%

44% agreement

between appraisers and

expert from part to part!

© 2009 by Smiths Medical: Proprietary Data

Measurement System Observations

Most Consistent Results

• 2 in Quality, 1 in Engineering

• Higher levels of training (Supervision, etc)

Success Factors included:

• Dark Background

• Magnifying Light

Strong personal interpretation of what a defect is

• Varying personal definitions

Current Operational Definitions are zoomed in much further than the

magnifying lights or other methods of sorting

© 2009 by Smiths Medical: Proprietary Data

Measurement System Plan

Key Takeaways from Gage

Analysis

• Measurement System is

unreliable

•Past collected data/Current

Process Capability is

unreliable

• Several good parts were

being Rejected consistently

between all appraisers

• Some defective parts

containing FPP were being

Accepted

• Appraisers were 77%

consistent between trials,

but it is clear that everyone

has a different idea of what

a defect actually is

987654321

100

80

60

40

20

0

Appraiser

Perc

ent

95.0% C I

Percent

987654321

100

80

60

40

20

0

Appraiser

Perc

ent

95.0% C I

Percent

Date of study: 11/5/09

Reported by: Cody Havaich & David Rossi

Name of product: High Flow Stopcocks

Attribute Agreement Analysis

Within Appraisers Appraiser vs Standard

How will we develop

The new

Measurement System?

Analyze

Improve

• Look at method linked to

most consistent appraisers

& use those methods in a

2nd Gage R&R

• Update/Develop

Operational Definitions and

Inspection Manual

• Coordinate training for

standardized method of

sorting confirmed in Gage

Study

© 2009 by Smiths Medical: Proprietary Data

From/To and Important Dates

Current State

September 2009

• Losing 10 cents per

stopcock per order when

defects are found.

• At any given time there are

5 – 12 orders delayed

because of 100% sorting.

• $300,000 lost annually due

to waste

• Defects can potentially be

lethal

Potential Future State

March 2010

• Safer products produced

• Make a profit of 10 cents per

piece per order

• Reduce delayed orders by 50%

• Reduce scrap produced by

50%

• Standardize a toolset/method

for stopcock manufacturing that

can be applied to all size

stopcocks produced

DEFINE

Identify

Customer and

Process Issues

MEASURE

Understand As-Is

Performance

ANALYZE

Determine Root

Causes

March 19th, 2009 September 17th, 2009

10/9/09

2/12/10

3/19/10

IMPROVE

Optimize

Performance

CONTROL

Implement and

Document

REALIZE

Visualize and

Comprehend Results

MAI

CR

1/15/10

3/5/10

11/16/09

Order Received Stopcocks Taken

from Inventory

Molding produces

Plugs and Bodies

Stopcocks sent to

Inventory or

Monterey, Mexico

Auto Assembly

Combines parts to

Form Stopcock

QC Inspects Orders

© 2009 by Smiths Medical: Proprietary Data

Questions to be Answered in Analyze

• What are the root causes?

• How are the root causes identified?

• Which root causes and factors have the greatest effect on the overall

performance?

• What does the DOE tell us?

• Have new/updated Operational Definitions been defined?

• What is the status of the Measurement System Plan?

• Any quick improvements that can be made?

62

Printing Press Make Ready Standardization and Time Reduction

Baesman Printing

August Secue

Integrated Systems Engineering:

We Engineer Value

Primary Metric Recap and Key Findings from Measure

Initial Ideal

Primary Metric

Process is Out of Control Potential Sources of Variation

23.5 minutes/unit on

Make Readies

7.5 minutes/unit on

Make Readies

70% Reduction

Method 8Method 7Method 6Method 5Method 4Method 3Method 2Method 1

80

70

60

50

40

30

20

10

0

Min

ute

s

7.5

19.404922.1668

20.7731

16.7607

20.7259

27.684425.1373

57.82

Make Ready Methods

7c6c5c4c3c2c1c

140

120

100

80

60

40

20

0

Min

ute

s

7.5

Variation in Colors

*All control charts are based on 100% inspection of the collected data.

*New measurement system and data recorded representative of the long term process

*High level of confidence in measurement output

1C-3c jobs are done less often and result with outlier values

Process lacks standardization resulting in high variance within and between workers.

(All Colors)

Why are these Root Causes? • Interviewing, suggestions, and knowledge

from experience through pressmen, David Kirkman, Dave Moore, Mark Acree, and Dr. Sink

• Analysis of Make Ready data to weed out sources of variance

• Inspection of the process

• Research • http://74.125.95.132/search?q=cache:gy7XYHn7S2MJ:w

ww.pharmamanufacturing.com/articles/2009/147.html+long+changeover+time+root+causes,+case+study&cd=1&hl=en&ct=clnk&gl=us&client=firefox-a

• Case Study of DMAIC project done in the Pharma industry on changeover reduction with several similar root causes

Discovery and realization of root causes

Prioritized List of Root Causes 1. Lack of standardization in how to

perform the process between crews

2. Waiting waste – parts of process than can be done during run (internal activities) are being done after the run is completed.

3. Pre-press Errors (eg paper missing or incorrect, job bags are confusing

4. Old press rollers and dryers causing printing errors

5. Lack of color curve standard on new inks resulting in long impression make readies

6. Materials scattered and distance from the work areas

Prioritized List of Solution Elements 1. Standardization of the process

2. Machine Maintenance

3. Implementing SMED on the

process

4. Material Staging and 5S

5. Establishing Color Curve Standards

Why are these Solution Elements? • Interviewing, suggestions, and knowledge

from experience through pressmen, David Kirkman, Dave Moore, Mark Acree, and Dr. Sink

• Inspection of process and studying of standardization and SMED

• Research • http://www.cma4results.com/AREnmag8

09.pdf • The benefits and uses of

standardized work • http://www.emsstrategies.com/case-

study-SMED.html • Case study where standardization,

5S and SMED are uses

Developing and prioritizing of solution elements

How Developed Solution Elements will Address our Root Causes

Prioritized List of Root Causes 1. Lack of standardization in how to

perform the process between crews 2. Waiting waste – parts of process than

can be done during run (internal activities) are being done after the run is completed.

3. Pre-press Errors (eg paper missing or incorrect, job bags are confusing

4. Old press rollers and dryers causing printing errors

5. Lack of color curve standard on new inks resulting in long impression make readies

6. Materials scattered and distance from the work areas

Prioritized List of Solution Elements 1. Standardization of the process

2. Machine Maintenance

3. Implementing SMED on the

process

4. Material Staging and 5S

5. Establishing Color Curve Standards

Variance Between and Within Pressmen from Lack of Process Standardization (4C-7C)

• Variance shown between and within crews

• Implement and measure a standard method

Standardized Method Test Run Results – Improvement on Make Ready Average and Variance

• Learning curve: data trending down • A run of 9 data points below

the mean is a RED FLAG showing a definite shift or change in the process

• Average = 14.34 min/unit

• Decrease in mean time from 16.02 min/unit to 14.34 min/unit

• Decrease in variance by 1.22 min/unit

• Hypothesis Test Results

Staging Solution Elements and Predicting Future Outcome Upon Implementation

X = 16.03 min/unit X = 7.62 min/unit

Current State

Standardization

SMED Maintenance/Staging

Improvement Implementation Plan

* Click improvement label for details of solution element

ACTUAL FORECASTED

AA Grit Lava Bushing Variation

Reduction

Diamond Innovations

3/16/09

Michael Zastko

Integrated Systems Engineering:

We Engineer Value

Improve / Control Tollgate

High-Level Process Map

- 02.10.2014 - 71

Product

Request

Outside

SupplierEnd Cap

Diamond

Product

Pressing

Operation

Cell

Assembly

Rubber

Strata

Layers

Cup

AA Bushing

MoldingCuring/

Tumbling

Mixing/

Blending

Outside

Machining

(Roughing)

Firing

Outside

Machining

(Roughing)

Final

MachiningO.D. Coat

Project Bounds/Scope

- 02.10.2014 - 72

By the Numbers

Sigma Level / DPM

30 Batches Per Year x 1500 lbs = 45,000 lbs

20411656 gm / 1100 gm per log = 18,500 logs

18,500 logs x 2 bushings = 37,000 Before Machining and

destructive testing

Actual Yearly Production 13,000

Need Act. number from Gemmes

Approx. Raw Material waste 50% By weight due to Machining

13,000 Bushing Entitlement Capacity

Actual Yearly Production 11,000

Need Act. number from Gemmes

Current

Performance Metrics Sigma

Level

Spec Defective Units

Out of Spec

Units Scraped Units Produced

Lava Blending /

Mixing

Blending

(%Moisture)

2.29 1.35% – 1.75%

(Specification)

9,600 lbs

7,900 Bushings

1500 lbs

(One Batch)

45,000 lbs

37,000 Bushings

Forming

Isopressed Log

(Density)

1.82 2.615-2.625 g/cc

(Specification)

16,900lbs

16,800 Bushings

526 logs

45,000 lbs

36,000 Bushings

Rough

Machining CPT1

UNK See appendix. UNKNOWN UNKNOWN

45,000 lbs

36,000 Bushings

Heat Treating

(Firing)

Heat Treat

(Hardness)

4.36 55-85 RHH

(Control limit)

80 lbs

80 Bushings

UNKNOWN 36,000 Bushings

Rough

Machining CPT2

INSP From

CPT2 (Hardness

Avg.)

UNK

3.8

See appendix.

2.615-2.635 g/cc

(Control limit)

UNKNOWN UNKNOWN

32,800 Bushings

Machining Final

Detail

Final Detail

Machining (OD)

5.59 See appendix. 6 Bushings

1800 Bushings 32,800 Bushings

- 02.10.2014 - 73

DOE (Res V) Results

Level /

Factor

Powder

Moisture

Press Set

Point

Hi Press.

Ramp Up

Dwell

Time

Furnace

Temp

Moisture / Press.

Set Point

Interaction

High 1.75% 29,000 PSI 60 s 15 s 915°

Low 1.35% 23,000 PSI 40 s 5 s 900°

Significant /

Rank

Yes (1) Yes (2) No No Yes (3) Yes / Maybe (4)

Some log pressing set-ups

show improved performance

% Moisture is Out-of-Control

& current processes controls are ‘ad hoc’

- 02.10.2014 - 74

Emergence of Variation Current VSM Pain Points

MRP

Production

Control

Grit Lava

Supplier

Blending

/ Mixing Curing

Pressing

(AAB)

Machining

CPT

Heat

TreatTumbling

Final

Machining

(Final Detail)

Sodium

Silicate

Molydag

Coating

Per

Request

Cell

Assembly

Production Supervisor

Brian Pfeister

% Moisture

Bulk Density Hardness

Per

Request

YES

NO

Hardness

DIM

DENS

Density

Wet Wt

Dry Wt

Plastic Covered Rack

Near CC Blower Plastic Covered Rack

DIMS

Grit Lava Book

(Spray Dry Room)

Isopressed Grit Lava Log AA Grit Lava Bushing-

HardnessDetail X AA Bushing ServerServerServer

Re-Fire

Bushings

Machining

CPT

INSP AA Grit Lava

Bushing

Dry

Down

Powder

SYSTEM WEAK POINTS

Improvements in these areas

will bring significant gains

Process

Out-of-Control

Root Cause

- 02.10.2014 - 75

. Application of Pressure @ ABB

Current log forming configuration creates variation in density part-to-part and internally in part.

Root Cause #1 at Pressing

Press Molds Internal Part Variation

Press Stack Mold-to-Mold Variation

1

2

3

4

a

b

c

d

“Parts are pressed in a stack of eight (ABB Press);

data from 2003 shows density variations are

statistically significant at specific places in the stack.”

- 02.10.2014 - 76

Current log forming configuration creates

variation in density part-to-part

and internally in part. (End-to-End)

Effects of Hour Glassing

Press Molds

Intra-Mold Variation

- 02.10.2014 - 77

Failure Modes Improved

Soft Spots

End-to-End Bushing Variation

(or Outer-Inner Log Variation)

‘Optimize’ Pressing Parameters:

1. Change Green Density Specification in POCI ……….$100

From (2.615-2.625) to (2.700-2.710)

2. Narrow and Shift Moisture Spec. in POCI ……………..$100

From (1.35%-1.75%) to (1.50%-1.70%)

3. Lower Kiln Temp. in POCI ………………………………..$100

From (900°C) to (895 °C)

Short-Term Solution (Option 1): Reduce Intra-mold Density Variation

Log

80% of Defects

Occur in the

Middle of the Log

~ From Mark Singers study

Pressure vs. Hardness

Low press pressures =

Increased variation

20-30% Reduction in

End-to-End Bushing Green

Density Variation

$xx,xxx Saved per Year

(Tooling Costs & Product Yields)

Bushing

- 02.10.2014 - 78

Short-Term Solution Effects (Opt. 1):

Reduced Inter-mold Density Variation

Improved

End-to-End

Defects Occur at the

End Plug-Bushing Interface

80% of Defects

Occur in the Middle

of the Log

Future Outer Different than Inner

(p = 0.09)

Current Outer Different than Inner

(p = 0.00)

- 02.10.2014 - 79

Failure Modes Improved

Soft Spots

End-to-End Bushing Variation

Interface Failure

‘Optimize’ Pressing Parameters:

Change Green Density Specification in POCI .…$100

From (2.615-2.625) to (2.700-2.710)

Narrow and Shift Moisture Spec. in POCI …….…$100

From (1.35-1.75) to (1.50-1.70)

Lower Kiln Temp. in POCI ………………….……...$100

From (900°C) to (895 °C)

Single Bushing Molds:

Re-Design Mold …………………………….………$1000

Have Mold-Mold made …………………………..… $600

Have 16 New Molds Made ………………………. $4400

($275 / ea.)

Total Cost..………………………………………...$6,300

Long-Term Solution (Option 2): Reduce Intra-mold Density Variation

70-90% Reduction in

End-to-End Bushing Green

Density Variation

$xx,xxx Saved per Year

(tooling costs & product yields)

Single

Bushing

Log

Bushing

80% of Defects

Occur in the Middle

of the Log

- 02.10.2014 - 80

Future (Bushing Ends Same Hardness)

Current (Bushing Ends Different Hardness)

Nearly All Defects will occur in the

center of the bushing

Not at the End Plug-Bushing Interface

Ends

Similar

Long-Term Solution Effects (Opt. 2): Reduce Interface Failure

& End-to-End Variation Reduction

Double Bushing Log

Ends

Same

Single Bushing Log

- 02.10.2014 - 81

Direct Benefits:

XX,XXX Reduction in Blow Out Costs

XX,XXX Reduction in Carbine Usage

XX,XXX Improved Product Yields

$XXX,XXX per Year

Cost of Full Implementation:

Mixing Solution 75% Reduction in Powder Moisture Variation

(Necessary to ‘optimize’ pressing conditions)

New Molds 80% Hardness Reduction End-to-End

Changes in Pressing SOP 20% Hardness Reduction End-to-End

Visual Controls & PM Necessary to improve process maturity

Return on Investment: 10:1

Overall Improved Process Maturity & Greater Enterprise Value

Business Case

Cost of ‘Simple Solution’

< $2,500 $9,000

- 02.10.2014 - 82

Business Case for Improving

Polycrystalline Disc Production

Enterprise Value

Revenue

Growth

Asset

Efficiency

Operation

Margin Expectations

Acquire New

Customers

Retain and

Grow Current

Customers

Strengthen

Pricing

Cost of

Goods Sold

Improve

Development

& Production

Efficiency

Improve

Management &

Governance

Effectiveness

Improve

Property,

Plant &

Equipment

(PP&E)

Efficiency

Improve

Execution

Capabilities

Lean Sigma Foundations Companies integrate DMAIC with DfLS with the

Foundation for Running a Business (e.g. TPS)

Process Management System

Lean Sigma Foundations

Adhoc As required, not defined, and success depends on individual effort & knowledge.

Highly variable, difficult to repeat.

Practice Discipline is in place to repeat the process with

some degree of success

Process Maturity Levels: another way to

think about what you are doing

Defined Process is documented, standardized, and integrated.

Managed Detailed measures (time, quality, etc.) are collected and

are used to quantitatively understand and control the

process.

Optimized Continuous and proactive process

improvement through quantitative feedback

from the process, and from piloting innovative

ideas and technologies

- 02.10.2014 - 85

Candidate Perspective—

Give and Get

Grange Insurance—Improving

Responsiveness to Agents

Ohio Health—Reducing Lead Time

and improving flow for Imaging

Donato’s Pizza—Improving Labor

Efficiency (reducing labor over or

under invest)

OSU Med Center: • eliminating contaminated surgical instrument

defects

• reducing Lead Time for portable Echo

Cardiogram’s

Mettler Toledo—Moving from Push to

Pull for the back end of order

fulfillment

Worthington Industries—improving

process capability for scrap reduction

Akzo Nobel and Sherwin Williams—

improving first time pass yield and

reducing can2can change over time

Sutphen—Design, Develop,

Implement and Optimize a Lean

Internal Supply Chain System

- 02.10.2014 - 86

So, in face of this strong need/demand we

created an ILSS Certification Program in 2007

5810 is the ILSS Black Belt

Foundation Course (aka ground

school)—industry best in class, results

in a certificate post passing exam, and

recognized by almost all of our hiring

organizations

What I hear is that students say it’s

one of the better experiences they’ve

had here.

3 Saturday Labs, hands on,

experiential

strong analytical development focus

5811-12 is the ILSS Green Belt

Certification (Senior Capstone

alternative) (aka flight school)

Outstanding, important projects, with

high visibility to senior leadership and

management in the organizations.

Probably as good if not a better

internship experience than Summer

opportunities.

lot’s of coaching and peer support.

challenging in spots but 28 weeks

gives you time to create real results

and smooth out effort.

Quick Facts on the

Program

Program Initialization: Autumn 2007—Joint Design and Development effort by Scott and Julie Higle. She

wanted to enhance the UG experience, differentiate our Department and Program. In 2010, the program won

the Outstanding Curriculum Innovation Award from CIEADH (IIE) and was written up in the IE monthly

magazine.

Program Consists of:

• Integrated LeanSigma Black Belt Foundation Course (ISE 5810) (more rigorous version of BUSMGT 4250 in the MBOE

program)

• Approved Capstone Alternative (ISE 5811-12) Certification Project Course

• Will stand up to best in class corporate programs (Xerox, Cardinal Health, Quest Diagnostics, BMGi and a few others were my

primary benchmarks) I brought the program from MDS.

Initial Class: 12 Candidates for both Foundation Course and Project Course.

Current Class: 64 Candidates for Foundation Course, 32+ for Project Course.

Cummulative Stats: 214 students through the Foundation Course. 179 through certification program.

Roughly 70% earn certification.

Revenue Generating: Suggested sponsorship is $7,000 per project. Average around $70,000/year in

earnings to cover half the cost. I subsidize out of pocket for travel and incidentals.

Initial Job Success: >95% of the candidates who take the three course sequence have outstanding initial

positions prior to graduation. (I can only count 4 out of 179 that didn’t)

- 02.10.2014 - 88

Program Outcomes: Sponsor Impact

Lean Sigma Foundations

Intern

ship

s

Po

st Grad

MS

ISE

F

ligh

t Sch

ool

Gro

und S

cho

ol

How the training and certification

process works

ISE

5810

Black Belt Top-off (e.g. 2nd project w/

ISE or your company)

Sp

2016

Su

2016

Sp

2017 Su 2017

ISE

5810

ISE

5810

Su

2015

Internship + or just

5811-12

Au

2016 Au ‘14

ISE

5810

Internship +

5811-12?

Au

2015

Sp

2015

ISE 5811--

5812

MBB?

ISE

4900L

S

ISE

5810

ISE

5810

ISE 5811--

5812 ISE

4900LS

ISE

5810

ISE

5810

ISE

5810

ISE

5810

TRANSMET

Integrated LeanSixSigma Certification Program College of Engineering

Integrated Systems Engineering

Full Day, Hands-on LEAN Lab

Full day, Hands on Six Sigma Lab

6 Years,140Projects, 22+ Sponsors and growing, $7.2 M in audited Benefits, $1M ‘in-progress’ 220 candidates through the program: 3 Black Belts & 90 Green Belts Certified (50 in-process) & 8 Yellow Belts

>95% of the candidates in this program have jobs before graduation and those ‘Graduates’ now hold jobs with Eaton, Whirlpool, Caterpillar, Parker Hannifin, P&G, Boeing, Globe Metallurgical, Chase, Bimbo Bakeries, Limited, Walmart, Rolls Royce, L’Oreal, Mettler Toledo, Owens Illinois, MoreSteam, NAVAir, Herren Associates, Bare Escentuals, Nestle, Timken, Cooper Industries, Honda Engineering, Accenture, The Poirier Group,

Cameron International, Polaris, Thermatru, Unilever, General Mills, OSU Medical Center,

ISE Core Curriculum

ISE 5811-12

ISE 5810

Blended Training Model

SEASONING THEM TO MAKE BIG CONTRIBUTIONS Integrated Change Leadership & Management:

Shared Vision/Creation Skillful, Mental Models, Team Learning, Personal & Professional Mastery

Junior (‘composite’)

PERSONAL MASTERY • don’t listen well • Action junkies • don’t stay focused, can’t juggle multiple balls well • don’t communicate well • victim behavior • judgment mode common • Parent-child lingering, still, with Teacher-Student, which will carry over to boss to subordinate if not corrected PROFESSIONAL MASTERY • do not exhibit ideal learning behaviors • do not understand what it takes to succeed in the ‘real world’ • struggle mightily to ‘reduce to practice’, sloppy, undisciplined practice • can’t manage projects successfully • do not manage relationships proactively • cannot produce results, lose sight of the end-game • have heard the talk on ‘ethics’ and values

ISE Core Curriculum: OR, HFE,

MSE, M/PSE

2 Semester,

Real World Capstone

Black Belt Foundation Course

+ ILSS CERTIFICATION PROGRAM

Senior (‘composite’)

PERSONAL MASTERY • can deep listen, can active listen, seek to understand • Plan before acting, Context, Possibilities, Action • practiced focus and persistence with something difficult for 6+ months • communication skills (written, oral, body language) enhanced for success • spend less time in judgment more time in evaluation and difference, consciousness about tendencies • made the switch of making the switch to Adult to Adult PROFESSIONAL MASTERY • improved consciousness and practice with ‘ideal learning behaviors’ • clear understanding of ‘flat world’, competitive World requirements for success, more real world savvy • lot’s of opportunities for perfect practice • demonstrated program and project management skill to gain certification • relationship management skill development initialized, understand importance • Capable of producing results in timely fashion and understand them in context of the system or higher good • have had to walk the talk on ethics and values

Bu

sin

ess

and

Fi

nan

ce

TRA

NSM

ET

Bron Shoe

Lean Sigma Foundations The three course sequence, starting with 5810, is as much

about ‘readying’ candidates for real world as anything…

Training integrates Change Management & Project Management skills and

techniques along with technical training on Lean & Six Sigma.

Program

Initialization

Engage

the

‘Right’

People

Best in

Class

Training

Pick the

Right

Projects

Discipline

around

Methodology

Celebrate

Successes to get

the ‘fly wheel’

spinning

Peter

Senge’s

The 5th

Discipline

Greatness is a lot about disciplined people (thought,

word, deed)

Disciplined about what?

Systems & Statistical Thinking

(LeanSigma)

Personal Mastery

Mental Models

Creation

Skillful

Team Learning

Soph/Jr. (‘composite’ Profile)

PERSONAL MASTERY • don’t listen well • Action junkies • don’t stay focused, can’t juggle multiple balls well • don’t communicate well • victim behavior • judgment mode common • Parent-child lingering, still, with Teacher-Student, which will carry over to boss to subordinate if not corrected PROFESSIONAL MASTERY • do not exhibit ideal learning behaviors • do not understand what it takes to succeed in the ‘real world’ • struggle mightily to ‘reduce to practice’, sloppy, undisciplined practice • can’t manage projects successfully • do not manage relationships proactively • cannot produce results, lose sight of the end-game • have heard the talk on ‘ethics’ and values

Solid ISE Core Curriculum:

OR, HFE, MSE, M/PSE

2 Semester, Real World Capstone

Black Belt Foundation Course (all five Disciplines)

+

ILSS CERTIFICATION PROGRAM

Senior (‘composite’)

PERSONAL MASTERY • can deep listen, can active listen, seek to understand • Plan before acting, Context, Possibilities, Action • practiced focus and persistence with something difficult for 6+ months • communication skills (written, oral, body language) enhanced for success • spend less time in judgment more time in evaluation and difference, consciousness about tendencies • made the switch of making the switch to Adult to Adult PROFESSIONAL MASTERY • improved consciousness and practice with ‘ideal learning behaviors’ • clear understanding of ‘flat world’, competitive World requirements for success, more real world savvy • lot’s of opportunities for perfect practice • demonstrated program and project management skill to gain certification • relationship management skill development initialized, understand importance • Capable of producing results in timely fashion and understand them in context of the system or higher good • have had to walk the talk on ethics and values

SEASONING ISE Undergraduates TO MAKE Quicker, Bigger/Better CONTRIBUTIONS Integrated Change Leadership & Management:

Senge’s Five Disciplines: ISE & Integrated Lean Sigma WITH Shared Vision/Creation Skillful, Mental Models, Team Learning, Personal & Professional Mastery

+