Lean Sigma Basics
ISE 2400
Work Design Course
Intro to Integrated
LeanSigma
D. Scott Sink
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
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.
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
+
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