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1、How to use Lean Six Sigma to improve corporation process-Learn“Lean Six Sigma Overview”and practice in real operationIntroduction: Zhang Dong:Lean Six Sigma Manager at Ingersoll Rand,Deputy president of Lean six sigma committee,Chief editor of Asia Lean six sigma weekly magazine,China quality associ
2、ation six sigma promotion committee member,author of ,She dedicate to promote Lean Six Sigma method in real world and serves to teach as Honorary Professor in Shanghai Jiaotong University,Antai College of Economic and Management.William Liang:Shanghai Jiaotong University Antai College of Economic an
3、d Management,China Leaders for manufacturing Programme.After received B.E. degree of Material Physics from Central South University in 2004,he served in Laird technology and Saint Golban.He devotes to lean system building and lean implement in corporation.As student,William Liang studies Lean Six Si
4、gma in Zhang Dongs course.Forward:On 19th Dec,2010 we warmly welcome Ms Zhang Dong to bring a vivid lecture combined with her many years accumulated consulting experience and research achivement. The lecture opened from core concept of DMAICL,which means “define,measure,analysis,improve,control and
5、leverage”,a creative concept developed traditional DMAIC method and 6sigma tools that initial from Motorola, GE to a modern broadly implemented 6sigma concept not only used in manufacturing industrial but also in service industial such as great logistics circle (SIPOC),from suppliers,producer,wholes
6、aler to distributor. The lecturer brought a newly developed concept for todays evolutionary cooperation model in industrial chain and devote to widely leverage this advanced concept and theory to promote competence of individual companies as well as network in wholly industrial chain.After absorb th
7、is concept,I combined my work content to study how to apply 6sigma and DMAICL steps to improve our effectiveness in corporate operation.Text:With the living standard rising dramatically,automobile consumption keep increasing and has been witnessed to become the largest market globally.In 2010,domest
8、ic sales volume reached 18,060,000,with acceleration 32%.We confidently forecast that this rising trend will hold for many years.Engine production and sales benefit from this trend and domestic manufacturing advantage,with profit rate over 20%,even 40% in some core firms.As vehicle parts manufacturi
9、ng is a capital and labor intensive industry,contribute high weight to region economic,it is meaningful to research how to promote process capability and productivity in this industry.Lean six sigma method combine lean and six sigma and developed traditional Lean or Six sigma method,bringing new opp
10、ortunity for enhancing corporation process,accelerating delivery,turnover while eliminate waste within process or firms. The firms that adopt this advanced method perform highest profitability and competitiveness in market. Chart 1.1 China and U.S. Automobile and vehicle consumption trend among 2007
11、2010Chart 1.2 China automobile market trend of various kinds from 2003 to 2010.Chart1.3 Domestic automobile sales trend in decade for Large,big,medium,small and mini type.Raise our plant for example,we daily produce and assemble thousands of engines which broadly used in various vehicles,sale to top
12、 6 automobile OEMs,including domestic and joint venture firms.Quality and on time delivery is vital for engine plant as well as for our client.Aluminum ingot,and assemblies supplierOur plantAutomobile& vehicle producer Distributor(4S store)InputOutputSIPOCTo be leverage.Chart2: SIPOC flow chart of o
13、ur plant.From the chart mentioned above,we know that Supplier,our plant and clients form a link,and among upstream and downstream there exist many similar links.These links form a chain,which can also be called circle,and turnover rate,inventory volume/value be set as benchmark.Meanwhile,accompanied
14、 with material flow,information flow and cash flow(or capital flow) form the whole value flow system among the chains,involve internal and external departments for engine marketing and sales, order acceptance,design,supplier contracting,production and assembly,product&service delivery,finance settle
15、ment.Among the process we add value to raw material resource that we procured from upstream and deliver this value to customer.The information flow moving backward from downstream to upstream,including customer requirement,market forcast,rejection or rework,etc.Here we raise a product line as an exa
16、mple to explain our process improvement.CylindeChart 3.1 VSM(value stream map) for Cylinde process before improvementAfter identify value added steps and value added time in each steps,we find out non-value added time in steps respectively.Further improvement measures based on these identification a
17、nd analysis.Eg,we reduced casting set up time from 40h to 24h by keeping melting furnaces temperature and casting machine preparation.In these way,we dramatically reduce time waste.Owing to lead time reduction,we can quickly response to customer order and reduce inventory.These effort contribute to
18、tens of thousands RMB per month for each product.Chart 3.2 VSM for Cylinde process after improvementAccturelly,we continuously contribute to reduce cost through minimize waste and promote productivity,quality and service level.Emerging technical innovation may push process reengineering and progress
19、 in operation.In 2010,we adopt 2 new process technology.Process chart:MeltingPretreatmentCastingStorage &transportStorage &transportC/T=90 minC/T=4.5minC/T=4.3hValue added time:32 minVAT:3 minVAT:19 minNon-value add:58minN-VAT:1.5 minN-VAT:4hDefect:2%40 hDefect:4%20hDefect:1%Chart 2.1: Before improv
20、edC/T=90 minC/T=4.5minC/T=1.3hValue added time:32 minVAT:2.6 minVAT:19 minNon-value add:58minN-VAT:1.2 min(Ageing annealing)N-VAT:1hDefect:2%24 hDefect:3.2%20hDefect:1%Chart 3.1: After improvedContinuedStorage&transportHeat treatmentShot blastingStorage&transportRough machining50hC/T=9h1minC/T=30min
21、3hC/T=5minVAT:5hVAT:1.5minVAT:4.5minN-VAT:4hN-VAT:28.5minN-VAT:0.5minDefect:0.05%Chart 2.2: Before improved24hC/T=9h1minC/T=29min1hC/T=4.7minVAT:5hVAT:1.5minVAT:4.5minN-VAT:2hN-VAT:27.5minN-VAT:0.2minDefect:0.05%Chart 3.2: After improvedContinued EndPackagingStorage&transportFinish products warehous
22、eC/T=3.03h8hVAT:2minN-VAT:3hChart 2.3: Before improvedC/T=61min4 hVAT:1minN-VAT:60minChart 3.3: After improvedUnit（min）BeforeAfterImprovedLead time8370.55188.238.02%Circle time1110.5807.227.31%VAT362360.60.39%N-VAT748.5446.640.33%Chart 4:Achivement on Lead time reducingDefine value:Value customer ne
23、edsCCPOur targetCapabilityCTQ of qualityDefects rate0.03(each type)1.44.2%Key characterStability per 10 KmFailure rate99%94%PriceCompare with competitor1.05P(Avg)0.95PROI30%NPV200 MChart 5:Our target and Capability of sales and operationWe should control the quality within LSL and USL,considering pr
24、ocess capability and how much we should invest on process capability.Measure:What should we measure?Where should we measure?How should we measure?We considered these 3 questions after we called leaders and representatives from 5 departments meeting together,took brainstome to improve our process to
25、meet tightening market requirement.To start from screw map,we design measure chart,refine process chart,and schedule our measuring.Based on our engineering knowlesge,we made a causal analysis and select main causes.Product Type472477 cylinde481372472472472FC472WFTotalcylindemanifoldmanifoldMani- upp
26、ermanifold lowermanifoldmanifoldVolume19940348115591030004735060500127406260240511(unit)Casting defect1061142091128928852291098(unit)Cast defect rate0.53%0.33%0.37%0.37%0.61%0.48%0.41%0.46%0.46%Machining defect (unit)70341273626113Machining defect rate0.04%0.00%0.06%0.03%0.06%0.06%0.02%0.10%0.05%Dim
27、ension defect436187329151232150878533838Dimension defect rate2.19%0.54%0.59%0.50%2.60%2.49%0.61%0.85%1.60%Apperance defect1571722471939869354421782Apperance defect rate0.79%0.49%0.44%0.63%0.84%1.15%0.42%0.67%0.74%Amount defect (unit)70647381946194625251861306831Each product defect rate (Amount)3.54%
28、1.36%1.46%1.53%4.11%4.17%1.46%2.08%2.84%Monthly defect rate2.84%(Amount)Chart 6: Quality data for DelaminationFor each product,we measure its defects distribution situation for further analysis.We find that product 472 Mani- upper, 472 Mani-lower and 472 Cylinde occupied highest rank of defects.For
29、defects cause, Dimension defect rank first,followed by Apperance andcasting.Figure 7: Pareto chart of various Defect CauseHere “Dimension” and “Apperance” are main Cause,which amount to occupy over 80%(near 82%) of total defects,weighing 56.2% and 26.1% respectively.Reject or rework statistic:Name47
30、2 cylinder477 cylinder481372472472472FC472WFTotalmanifoldmanifoldManifold upperManifold lower manifoldmanifoldQuantity（unit）3.54%1.36%1.46%1.53%4.11%4.17%1.46%2.08%2.84%Chart 8 Defects of various Product TypeFigure 9: Pareto chart of various Product Type472 manifold lower,472 manifold upper,472 cyli
31、nder and 472 WF mani-fold rank top on weight,with 4.17%,4.11% ,3.54% and 2.08% respectively.We decide to focus on main defects that occupied large ratio of total(90%) and greatly contribute to profit loss.Here 472 series product rank top, we found that 472 series require much tighter tolerance than
32、normal requirement.We negotiated with our client to tighten tolerance stage by stage so that we have enough time to promote our process capability adapting to new demand.Analysis:Based on the statistic data,we use Pareto chart to identify the most effective variable for further analysis.100%100 %99.
33、18%97.78%97.16%98.08%98.11%97.76%97.39%95.00%96.00%97.00%98.00%99.00%100.00%101.00%2010.22010.32010.42010.52010.62010.72010.82010.92010.102010.112010.122011.198.10%PhasePhasePhase 97.79%98.61%Chart 10.1 quality index shift currentChart 10.2: Quality index Targer anDateTargetAverageFunction circleres
34、ponsible2010.22010.1097.5%97.99%（qualified /amount）100%monthQC leaderChart 11 Figure Fish bone chartCompare with the effects from each possible factor, use ANOVA to find out the significant factors.Y=f(X1,X2,X3,X4,X5) Here, X1,X2,X3,X4,X5 equal to Shift, Measuring, Method switch, Machine set, Runnin
35、g Round.We select ANOVA to analysis the effects of multi-factors (including Shift,Measuring,Method switch,Machine set,Running Round of operation):*We assume there is little correlation between these factors.Factor1: ShiftGood rateShift1shift2Test 10.98070.978720.98370.982030.97990.981240.97900.98545
36、0.98120.9786单因子方差分析One way ANOVA analysis: Shift1, shift2 来源Source自由度dofSSMSFP因子factor10.00000020.00000020.040.855误差error80.00004390.0000055合计Amount90.0000441S = 0.002342 R-Sq = 0.44% R-Sq（adjusted调整） = 0.00%Here P value 0.05,we reject hypothesis zero,there is not significant variance between shifts
37、.Factor2: Measuring facility adjustedMeasuring1Meas2Meas30.97320.98220.98340.96940.98560.98470.97390.98460.97560.97860.97960.98780.97260.98620.9778单因子方差分析One way ANOVA analysis: Measuring1, Meas2, Meas3 来源Source自由度DOFSSMSFP因子Factor20.00029070.00014539.970.003误差Error120.00017500.0000146合计Amount140.00
38、04656S = 0.003819 R-Sq = 62.42% R-Sq（调整） = 56.16% 平均值（基于合并标准差）的单组 95% 置信区间水平 N 平均值 标准差 +-+-+-+-Measuring1 5 0.97354 0.00331 (-*-)Meas2 5 0.98364 0.00273 (-*-)Meas3 5 0.98186 0.00503 (-*-) +-+-+-+- 0.9700 0.9750 0.9800 0.9850Here,P value0.05, P value of “Round”0.05,so we can confidently conclude that
39、 the main source of dimension shift comes from Running “Round”.In another word,the Dimension of product shift during Running Round 1 to 3,equaling PhaseII and III.After we standardized regular repairs by Oct,2010 for Castingdie and maintaining for Casting machine,we witness a steady rising of produc
40、t dimension passing rate.Figure12:Rate vs Machine, Round, Residual-Fit chart is OK.How we improve the process? (continued industriously working) Phase I:Negotiate with customer.As customer tightened quality standard,we have to gradually tighten the inspection qualified interval(USL2-LSL 2become narr
41、ower compare with USL-LSL),in this phase,the probability of out of interval(LSL2,USL2) became higher,this is the main cause contribute to passing rate dropping.However, owing to our effort we can get a better price latter because customer benefit from final assembly effectiveness.Phase The machines and tools wear and tear after intensive continuous running for large scale production.In this phase,the machines and tools run 24 hours everyday and had little time to stop for maintaining. Due to dimensions and appearance shift,the pr
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