CASE STUDY Manufacturing Organization

1
CASE STUDY Manufacturing Organization

• Project Name Wastage Reduction in Manufacturing
  process of XYZ Ltd
• Process Manufacturing
• Green Belt Mr ABC
  

2
DMAIC Steps
Deliverables
Phase
Define
SIPOC Customers and CTQs established Problem
Statement, Business Case, Goals Scope Team
Measure
Key output measures Y identified Data Collection
Plan Do MSA (Gage RR Only for Black
Belt) Process Variation displayed (Span) Baseline
sigma performance calculated
A Review of the Deliverables
These are the guideline deliverables. You may
want to refine for your project. Also, remember
to refine your Charter as you progress through
your project.
Analyze
Possible causes identified by Segmentation/Stratif
ication Detailed Process mapped in area of
problem Process Map Analyzed Data Analysis Root
Cause validated Vital Few identified Opportunity
is Quantified
Improve
Solutions identified/mapped Design
Solutions Implementation Plan (Consider
Pilot) FMEA executed Cost Benefit Proposal Created
Control
Standardized process On-going Monitoring Plan
established Procedures/documentation
realised Response Plan developed and
deployed Systems and structures modified
(staffing, training, reward and recognition,
systems) Ownership of on-going process management
transferred to process owner
3
Define Phase-

• Project Charter
• Business Case
• SIPOC
• Voice of Customer (VOC)
• Critical To Quality (CTQ)

4
DMAIC Project Charter
Project No.
Core Process
Project Name
Green Belt Sponsor Process Owner Six Sigma
Leader Black Belt
Problem Statement
Scope
Text
Goal Statement
Customer CTQs
Text
Text
Estimate Financial Opportunities
High Level Project Milestone
Text
Text
Validation
Date
Date
Functional Manager/Process Owner

Black/Green Belt


Sponsor
Six Sigma
Leader

Date
Date

Date
Date

Financial Analyst

Other

5
Define the problem statement-Project charter

• Background/problem description Current process
  wastage is very high as close to 20hence process
  becomes sub-optimal and high resource is required
  to do inspection of final output.
• Project objective/goal High wastage leads to
  pressure on COGS. Hence it is essential to reduce
  the wastage to less than 10.
• Project deliverables identify the reduce the
  High wastage leads to pressure on COGS.

6
BUSSINESS CASE AND IMPACT-

• XYZ is the first product XYZ Ltd, India is
  exporting to US market
• This product is very critical as it is new
  product in the Kids range in US
• Based on success of this product JJ India can
  get other new products from
• US and from other franchises like Neutrogena
• The process of pouching soap in to bi-layered
  tredegar film(aperatured
• plastic film) is developed by XYZ Ltd India team
• Current process wastage is very high as close
  to 20 hence process becomes
• sub-optimal and high resource is required to do
  inspection of final output
• Due to limitation in manual checking a rejected
  soap can go to the market
• and can lead to serious market complaint
• High wastage leads to pressure on COGS
• Tredegar film contributes around 18 to total
  COGS
• Hence it is essential to reduce the wastage to
  less than 10
• Business Impact
• USD 10101 or Rs. 505,050 PER ANNUM

7
High Level Improvement Timeline
Update your plan as your project
progresses Modify the deliverables for your
project
8
SIPOC
9
.
Sr no. supplier Input Process Output customer
1 Tredegar co. Tredegar film Tredegar pounhed soap BOPP pouching section
2 Bar. Mfg. dept. Stamped soaps Film trim wastage WAREHOUSE
3 Industrial press metal work Tredegar pouching m/c
10
.
sr no. supplier Input Process Output customer
4 XYZ Process design
5 VVF- utility section Air electricity

11
voice of Customer by Kano Model
Delighters- Zero Complaint of Open seal More is Better-Uniform frill (no variation) No creases in seal Wastage 2-5 Aesthetically good seal
Must Be-Good sealing of film Good cutting of film Proper frill around the seal
Delight-------- Neutral-------- Dissatisfaction---
---
Absent--------Present /Fulfilled
12
Analyze Phase-

• Multi-Vari Analysis
• Operator
• Shift
• Machine
• Hypothesis testing using ANOVA
• Cause Effect diagram
• Improper sealing
• Uneven cutting

13
Analyze Phase-

• Multi-vari analysis out put.
• Shift is having slight impact on rejection. In
  the A
• shift rejection is less which is mainly due to
  more
• supervision.
• In case of operator unskilled operator showed
  high
• amount of wastage
• Machine 3 4 showed less wastage, so
  concentrate
• on machine no. 2

14
Identify the y to be improved-

• Y reduce the High wastage leads to pressure on
  COGS.

15
Fish Bone Diagram/Cause Effect/Ishikawa Diagram
Yf (X1, X2, , Xn)
X s
Y
Mother Nature
Material
Method
Measures
Mankind (people)
Machines
16
Cause Effect analysis-
X s
Y
Out ttiming
Pulling of tredegar film
Machines
17
.
Out timing(X1) Pulling of(X2) tredegar film Machine
Uneven film tension Film alignment of two layer is not proper Improper cutting
Missing soap In pocket Rolls position not correct Loose spring tension
Shifting of position Loose chuck nuts
Soap in sealing band Improper die alignment
Insufficient pr. Cutter edge not
Uneven cutting(Y)
18
Fish Bone Diagram/Cause Effect/Ishikawa Diagram
Yf (X1, X2, , Xn)
X s
Y
Material
Operator
improper Sealing
Out timing
M/c Sealing Die
19
.
Improper Sealing(Y)
Operator(X1) Material(X2) Out timing(X3) M/c(X4) Sealing Die
Improper m/c setting- Very fresh soap Missing soap Insulation worn out
Less skill Tredegar film gauge Shifting Of position Insufficient pressure
Film tension Soap in die
Soap in seal band Temp.setting incorrect
Faulty heaters, Less dwell t time

20
.

• Improper sealing and uneven cutting are two
  major
• reasons for generating high amount of wastage.
• Out timing was noticed to be main cause of
  shifting
• the position of soap in sealing and cutting
  station
• Group discussed to concentrate on reasons for
  out
• timing

21
Cause effect analysis-
Yf (X1, X2, , Xn)
X s
Y
Soap in feed conveyor
Uneven end trim pulling
Soap not Advancing From conveyor
Fresh soap with high moisture
Play in soap pushing links
Soap missing in pocket
Film tension uneven
22
.

• Innovative
• Improvement-
• Solution prioritization matrix
• FMEA of defects
• Cost Benefit Analysis

23
Control Phase-

• Process capability sigma
• Process yield improves from 61 to 88
• Sigma improves from 1.9 to 2.7
• System modification
• Tredegar machine maintenance SOP revised to
  include
• schedule for replacing soap feed conveyor links
  to quarterly
• basis
• Suction system implemented for trim collection
• Key Learning's
• Use of PE methodology to systematically analyze
  the
• process which gives opportunity for process
  improvements