SS Black Belt Project example SD II

Material modified for demonstration purposes only -

provided by M. J. Grover

Material modified for demonstration purposes only - p

rovided by M. J. GroverRubber H® Product Line Simplification

Michael J. Grover




rovided by M. J. Grover

Rubber H® Product Line JustificationSix σ Project

Project YPerformance StdsData Collection PlanProject Y DataProcess CapabilityImprovement Goal

D1:D2:D3:

Project CTQ’sProject CharterProcess Map

M4:M5:M6:M7:M8:M9:

A10:A11:A12:

C15:C16:C17:

Sustained SolutionProject DocumentationTranslation Opportunities

Six σ Project

Prioritized List of X’sList of Vital Few X’sFinancial Opportunity

Proposed SolutionPiloted Solution

I13:I14:





Team and Support Personnel

Process Owner» Steve Santoleri – Global Business Director

Team members» Eddie Leblanc– Rubber H® Quality Manager » Judy Fincher – Ad Hoc

Black Belt / Master Black Belt» Mike Grover / Dewey Hess

Financial Analyst (if applicable)» Jane Castellano





Problem Statement

Rubber H® business has shrunk from a record high of 60+ MM lbs in the 1980’s to 42.4 MM lbs annually in 1999 to 30.0 lbs annually in 2003. The product line has not changed during this time, in fact it’s grown. As a result the 4495 product has 4 CSI SKU’s based only on Mooney Viscosity.

The planning, management and production of these SKU’s is cumbersome, arbitrary, and results in a “chasing effect” rather than organized production strategy (and lower Cpk / Z scores overall)





Project Objective (refocused on 4495 only)

Manage the Rubber H® 4495 mooney product line to the appropriate number of SKU’s (critical few) that will meet customer needs, create/maintain value, and allow easy management of the inventory. Analyze the capabilities to produce verses the value obtained, verses the effort necessary, and the total cost of holding the inventory and management.

Create a work process to manage/maintain the Rubber H®

Product Line (CSI SKU’s)





Cost of Poor Quality

Increased working capital and decreased product turns

Excess Production Order managementIncreased Customer Order management

(by regional planner & CSR’s)

Inadequate customer supply at timesSales specifications same as manufacturing specifications

(measurement error not accounted for)

More than one customer per CSI SKU (no control)





Customer and CTQ Identification

External Customers that have material specification needs not meet by the general product type sales specification (e.g.: mooney at the upper half of specification range)

Business – CTQ is ability to meet customer needs and derive maximum value from product

GPPM, Regional planner, Detail planner, Quality control people, CSR’s – CTQ is ability to meet customer needs, ease of management





Expected Benefit

The working capital for the 4495 CSI Mooney SKU’s is 177 M lbs or $262M Inventory Value with a potential hard dollar working capital reduction benefit of $45 M (@ 17%).

Soft benefit is less SKU management for orders, planning, and manufacture (1 operational plan).

More stable supply and better on aim mooney production

Quality of Product (as more control is observed on Mooney)





Process Map

Black Belt Mike Grover Process Rubber H SKU planning

(Use Nouns) (Use Verbs) (Use Nouns)

Monthly global planning

Paying Customers

Detail planning at

manufacturing plant

Rubber H Customer

Customer CSI

requirements

CSI products to meet

customer needs/specs

Detailed product

schedule

Previous Sales Production Regional

Warehouses

Demand Forecast

CSI products to meet demand forecast

Lab Testing

RMM’s, Sales,

Regional Planners

GR in SAP and ship to

warehouses

Global & Regional Planners

Sales & Customer

abnormalities&

Seasonality’s

CSI products to meet demand forecast

S I P O C





Fishbone Diagram

Place Proceedures MeasurementQuantity ordered

plant operationsOI's for product types sales value ($/lb)

lab methods and speedGMID Specifications MI of HDPE

Southwest climateDetail scheduling stastistical quality data

Customer LocationGlobal scheduling Sulpher content

Filling prod orders Chlorine content

Globs & Specs

Mooney

Customer CSI GMIDS

Anything the customer wantsSet up GMID to ensure Inventory Sales Mngr or RMM agrees to spec w/o

Whatever it takes to make it impact analysisMake one wide spec campaign

Just good enough (goal post mentality) RP & QA freq move material in SAP

non ISO facility Fill GMIDS as product comes off the line Different GPPM's (hardest first)

No room / $$ for improvement Customer / CSR communicationHold adequate inventory Just make it

GMID vs BSS

Environment Policies People

SKU’s





Data Collection Plan

Y Variable/metric (Mooney)» All 4495 CSI Mooney SKUS

– Obtain inventory data associated with the carrying of these SKUS.– Analyze customer(s) associated with each SKU, Sales History/frequency.– Analyze cost to manufacture verses sales price for profitability– Analyze Mooney data

X Variables/metric» Plant Process capabilities and ability to supply 4495 CSI SKU’s» Defined parameters for making / keeping CSI SKU’s

– Look for other alternatives.» Process controls that influence product variables desired by CSI

Moonry SKU’s– Primarily Chlorine level and Melt Index (MI) of PE feedstock





Performance Standards for Project Y

Project Y’s are Mooney CSI SKU’s» All 4495 CSI SKUS were set up based on a specific parameter of

Mooney Viscosity requirements more demanding than the basic Sales Specifications





Measurement System Analysis

Mooney Viscosity Measurement » Several years since a gage R&R performed (circa 1960)

– Was done on Rubber H® 40 (that is also the standard)– Rubber H® 40 has no Mooney CSI SKU’s– Rubber H® 40 Mooney Specification is 56.0 + 5.0

» Planning to run gage R&R on 4495– Rubber H® 4495 Mooney Specification is 94.0 + 9.0– Rubber H® 4495 has 5 CSI SKU’s (w/ Mooney)





Gage R&R for 4495 Mooney

Total of 36 samples: 3 operators (one day and one nights) six different Rubber H® samples covering the normal process range

2 replicates each





Gage R&R – methods are good @ 12% machine variation

Gage R&R

%ContributionSource VarComp (of VarComp)Total Gage R&R 0.2106 1.42

Repeatability 0.2106 1.42Reproducibility 0.0000 0.00

CodedOperato 0.0000 0.00Part-To-Part 14.5944 98.58Total Variation 14.8050 100.00

Study Var %Study Var %ToleranceSource StdDev (SD) (6 * SD) (%SV) (SV/Toler)Total Gage R&R 0.45894 2.7536 11.93 15.30

Repeatability 0.45894 2.7536 11.93 15.30Reproducibility 0.00000 0.0000 0.00 0.00

CodedOperato 0.00000 0.0000 0.00 0.00Part-To-Part 3.82026 22.9216 99.29 127.34Total Variation 3.84773 23.0864 100.00 128.26

Number of Distinct Categories = 11





Per

cent

Part-to-PartReprodRepeatGage R&R

100

50

0

% Contribution% Study Var

% Tolerance

Sam

ple

Ran

ge

2

1

0

_R=0.792

UCL=2.038

LCL=0

B Shift Not B Shift

Sam

ple

Mea

n

100

95

90

__X=95.28UCL=96.08LCL=94.47

B Shift Not B Shift

SampleFEDCBA

100

95

90

CodedOperatorNot B ShiftB Shift

100

95

90

Sample

Ave

rage

FEDCBA

100

95

90

CodedOperatorB Shift

Not B Shift

Gage name: Mooney V iscometerDate of study : March 2004

Reported by : Eddie LeBlancTolerance:Misc:

Components of Variation

R Chart by CodedOperator

Xbar Chart by CodedOperator

Result by Sample

Result by CodedOperator

CodedOperator * Sample Interaction

Rubber H 4495 Mooney Guage R&R





Rubber H® 4495 Grades

CSI Rubber H 4495GMIDS

|515226 100% Visually inspected |

|515017 Low Spec & Glob |

|515067 Low Moisture |

|515016 |

|515015 |

|515014 |

|515013 |

|515012 Sales Specification |

|| | | | | | | | | | | | | | | | | | |

85.0 86.0 87.0 88.0 89.0 90.0 91.0 92.0 93.0 94.0 95.0 96.0 97.0 98.0 99.0 100.0 101.0 102.0 103.0

Mooney Range





Historical Mooney Data

102999693908784

Median

Mean

93.693.493.293.092.8

A nderson-Darling Normality Test

V ariance 7.998Skewness -0.601340Kurtosis 0.990551N 514

Minimum 81.900

A -Squared

1st Q uartile 91.400Median 93.2003rd Q uartile 94.900Maximum 102.300

95% C onfidence Interv al for Mean

92.749

3.37

93.239

95% C onfidence Interv al for Median

93.000 93.500

95% C onfidence Interv al for StDev

2.665 3.012

P-V alue < 0.005

Mean 92.994StDev 2.828

95% Confidence Intervals

Summary for Mooney on 4495





Historical Mooney Data

Observation

Moo

ney

500450400350300250200150100501

105

100

95

90

85

80

Number o f runs about median:

1.00000

121Expected number o f runs: 257.96498Longest run about median: 32A pprox P-Value fo r C lustering: 0.00000A pprox P-Value fo r M ixtures:

Number o f runs up o r down:

1.00000

276Expected number o f runs: 342.33333Longest run up or down: 6A pprox P-Value fo r Trends: 0.00000A pprox P-Value fo r O scillation:

4495 Mooney Production 1-1-2002 to 3-1-2004





What are the factors that control Mooney Viscosity - X’s

Several Studies have previously been done on correlation of Mooney viscosity

Primary factors are feedstock molecular weight and chlorine content

We understand how to control mooney – therefore no need to analyze X’s or perform a design of experiments

Assume going forward that we can put procedures in place to control Mooney variability on production

Have predictive model in place at plant (type change papers)





Process Capability Overall

102999693908784

LSL USLProcess Data

Sample N 514StDev (Within) 2.80000StDev (O v erall) 2.82942

LSL 85.00000Target *USL 103.00000Sample Mean 95.00000

Potential (Within) C apability

C C pk 1.07

O v erall C apability

Z.Bench 2.80Z.LSL 3.53Z.USL 2.83Ppk

Z.Bench

0.94C pm *

2.83Z.LSL 3.57Z.USL 2.86C pk 0.95

O bserv ed PerformancePPM < LSL 5836.58PPM > USL 0.00PPM Total 5836.58

Exp. Within PerformancePPM < LSL 177.52PPM > USL 2137.37PPM Total 2314.89

Exp. O v erall PerformancePPM < LSL 204.43PPM > USL 2346.11PPM Total 2550.54

WithinOverall

Process Capability of Mooney (SKU 515012)

85.0 103.0





Process Capability on 515013

102999693908784

LSL USLProcess Data

Sample N 514S tDev (Within) 2.80000S tDev (O v erall) 2.82942



C C pk 0.30



Z.Bench

0.29C pm *

0.33Z.LSL 0.89Z.USL 0.89C pk 0.30




WithinOverall


90.0 95.0






102999693908784

LSL USLProcess Data




C C pk 0.48



Z.Bench

0.47C pm *

1.02Z.LSL 1.43Z.USL 1.43C pk 0.48




WithinOverall


90.0 98.0






105102999693908784

LSL USLProcess Data




C C pk 0.60



Z.Bench

0.59C pm *

1.45Z.LSL 1.79Z.USL 1.79C pk 0.60




WithinOverall


93.0 103.0






102999693908784

LSL USLProcess Data




C C pk 0.77



Z.Bench

0.77C pm *

2.05Z.LSL 2.32Z.USL 2.32C pk 0.77




WithinOverall


90.0 103.0





Probabilities w/ Current Process

SKU 515012 99.74 % attainment 49.3 % of PL









Rubber H® 4495 Proposal

Remove bar …………………………………………………CSI Proposed Rubber H® 4495

SKU'sEliminated GMIDS




|515016 |

|515015 |

|515014 Manufacturing Specifications

|515013 |


|| | | | | | | | | | | | | | | | | | |

85.0 86.0 87.0 88.0 89.0 90.0 91.0 92.0 93.0 94.0 95.0 96.0 97.0 98.0 99.0 100.0 101.0 102.0 103.0Mooney Range





Proposal for Improvement

Make Operational Manufacturing Specifications for Rubber H® 4495 Mooney Viscosity 90.0 to 98.0

» Manufacturing will take corrective actions anytime outside of these specifications

» Measure more often when outside of operating range (quicker reaction)» Want manufacturing specs inside of sales specifications to insure

measurement variability does not affect upper and lower limits» Sales Specifications remain unchanged» CPK will improve Shift 4495 mean to 93.0 (historically at 94.0)

» Appears that once we get inside of the sales/manuf specifications we stop any adjustments to the campaign





Proposal for Improvement

Eliminate 4495 CSI SKUs based on Mooney (515013, 515014, 515015, 515016)

» Fill all customer requirements out of 515012 General SKU» Eliminates a minimum of $262M Finished Product Inventory

Value with an associated hard dollar working capital reduction benefit of $45 M (@ 17%).

» Reduces CSR, quality coordinator, GPPM and Regional Planner SKU time and involvement planning & balancing SKU needs with production availability

» Reduces plant operational mode to one strategy (instead of – hey we need to hit this SKU then that etc.)





Rubber H® 4495 Proposal

Remove bar …………………………………………………CSI Proposed Rubber H® 4495

SKU'sEliminated GMIDS




|515016 |

|515015 |

|515014 Manufacturing Specifications

|515013 |


|| | | | | | | | | | | | | | | | | | |

85.0 86.0 87.0 88.0 89.0 90.0 91.0 92.0 93.0 94.0 95.0 96.0 97.0 98.0 99.0 100.0 101.0 102.0 103.0Mooney Range





Process Capability of Proposal

102999693908784

LSL USLProcess Data




C C pk 0.70



Z.Bench

0.38C pm *

1.61Z.LSL 1.67Z.USL 2.53C pk 0.56




WithinOverall

Process Capability of Mooney (w/ new manf spec w/ todays mean)

90.0 98.0





Process Capability based on “within SKU” pooled Std Dev

102999693908784

LSL USLProcess Data




C C pk 1.57



Z.Bench

0.98C pm *

4.29Z.LSL 4.29Z.USL 5.15C pk 1.43




WithinOverall

Process Capability of Mooney (w/ existing manuf spec's not centered)

85.0 103.0





Process Capability on Proposal

102999693908784

LSL USLProcess Data




C C pk 0.70



Z.Bench

0.48C pm *

1.80Z.LSL 2.10Z.USL 2.10C pk 0.70




WithinOverall

Process Capability of Mooney (Predicted on aim w/ SKU's Centered)

90.0 98.0





Process Capability based on “within SKU” pooled Std Dev

102999693908784

LSL USLProcess Data




C C pk 1.57



Z.Bench

1.07C pm *

4.58Z.LSL 4.72Z.USL 4.72C pk 1.57




WithinOverall

Process Capability of Mooney (predicted on aim w/ sales spec)

85.0 103.0





Profitability Analysis of CSI SKU’s

Downloaded sales data by SKU, Customer, and Region

Evaluated all accounts at Economic Profit = 0(ATOI –capital charges)

Microsoft Excel Worksheet

Rubber H 4495 Global Sales 1-2003 to 3-2004

Material 515013 HYPB 4495 CHP

No. of Sold-to party: 3

Sold-to party Invoiced qty Invoiced sales $/lb EP=0 % of Total

Total 352,800.00 LB 706,362.41 USD 2.00$ 1.893$ 3.77%11666 SAFIC ALCAN 178,605.00 LB 404,762.51 USD 2.27$ 1.893$ 1.91%13861 PARKER-HANNIFIN CORP 2,205.00 LB 4,851.00 USD 2.20$ 1.893$ 0.02%13854 DANA CORP 171,990.00 LB 296,748.90 USD 1.73$ 1.893$ 1.84%

Grand Total 9,366,784.88 LB 19,583,852.45$ 2.09$ 1.893$ 100.00%Weighted average

Example below:





Business Process Going Forward

To set up a CSI SKU (or check eligibility on existing non Mooney) it should meet 3 basic hurdles

» Cost per pound is at least an Economic Profit of zero or greater» A minimum working capital threshold = or > 15 % of PL» A minimum product turnover of inventory 6.0 Finished Product

Inventory Turns (i.e. Inventory is never older than 2 months)





Key Learnings

Key learnings from project » Many CSI SKU’s are very similar (e.g. Mooney range 90-103 for

one and 93-13 for the other» Some Customers have CSI SKU’s and BSS’s» Some CSI SKU’s have several customers (Who controls the values

– e.g. Dayco request to change)» No set review or policy for creating/maintaining CSI SKU’s» Mooney CSI SKU’s apply with other Rubber H Product Lines» Mooney CSI SKU’s apply with other DuPont Dow Product Lines





Next Steps

Get Buy in for implementation or trial period

Formalize plant procedures to follow control plan

Verify ability to control / change mooney

Apply project learning's to other products Rubber H®

4445 & Rubber H® 4448 (Green Belt Projects)

Set up Business Process for CSI SKU’s

Apply project learning's to other DDE products as applicable

SS Black Belt Project example SD II

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