Lean Six Sigma Methodology

Attributes of Lean Producers - they use JIT to eliminate virtually all inventory build systems to help employees produce a perfect part every time reduce space requirements develop close relationships with suppliers educate suppliers eliminate all but value-added activities develop the workforce make jobs more challenging reduce the number of job classes and build worker flexibility

Waste in Operations Overproduction Waiting time Transporting Non-value added processing Inventory Defects Underutilized talent Fig. 15.1, p. 686

Customer Sales Production control Plant A Warehouse Plant B Transport Order Product Process Order Print Extrude Receive product Wait Move Wait Move Order WIP Product 12 days1 day 13 days4 days10 days9 days Time Function Map

Shipping Customer Customer sales representative take order Prepress Department (Prepare printing plates and negatives) Printing Department Collating Department Gluing, binding, stapling, labeling Polywrap Department Purchasing (order inks, paper, other supplies) Vendors Receiving Warehousing (ink, paper, etc.) Accounting Information flow Material flow Production Process Flow Diagram

5 Whys Example The Washington Monument is disintegrating. Why? Use of harsh chemicals Why? To clean pigeon poop Why so many pigeons? They eat spiders and there are a lot of spiders at monument Why so many spiders? They eat gnats and lots of gnats at monument Why so many gnats? They are attracted to the light at dusk. Solution: Turn on the lights at a later time.

5 S Philosophy Seiri – Sort Seiton – Set in Order Seiso – Shine Seiketsu – Standardize Shitsuke – Sustain

Initial Setup Time Separate setup into preparation, and actual setup, doing as much as possible while the machine/process is running (save 30 minutes) Move material closer and improve material handling (save 20 minutes) Standardize and improve tooling (save 15 minutes) 90 min 60 min 45 min 25 min 15 min Use one-touch system to eliminate adjustments (save 10 minutes) Training operators and standardizing work procedures (save 2 minutes) Step 1 Step 2 Step 3 Step 4 Step 5 13 min Step 4 Steps to Reduce Setup Time

A AABBBC JIT Small Lots Large-Lot Approach Time AABB B C AAABBBBBB C C JIT produces same amount in same time if setup times are lowered Small versus Large Lots Small lots also increase flexibility to meet customer demands

Waste Reduction (%) 82% 50% 30% 20% 40% 0%20%40%60%80%100% Work-in-Process Inventory Raw Material Inventory Lead Time Space Finished Goods Inventory Scrap Setup Time JIT Reduced Waste at Hewlett-Packard

Visible Kanban (Control) 1- Card Kanban 2-Card Kanban Production Move Production Move Visible Kanban

JIT Experiential Exercise

Kaizen – Continuous Improvement DMAIC Define Measure Analyze Improve Control

Kaizen – Continuous Improvement PDSA Plan Do Study Act