1. Six Sigma Project Overview
Final Report
Mack Operations Focus
Duration of Project:
May ~ July 2004
Craig Lester
Continuous Improvement Manager
Iverson Industries Inc.

2. DEFINE
Team Members
TEAM LEADER
Craig Lester – Continuous Improvement
Manager
TEAM MEMBERS
*Michael Iverson - Engineering Manager
*Bill D. - Maintenance Supervisor
Cross Functional Core Team
*Jim T. - Process Engineer
*Wayne R. / Brenda P. - Quality Engineer
*Jim A. / Ali A. - Production Supervisor
*Manufacturing Associates

3. DEFINE
Define Problem Statement
The Mack operation is not meeting Customer Demand for
Delivery and Quality. Labor costs are excessive due to
Overtime consumption.
The Mack operation is NOT Balanced
Labor is @ 150% of the quoted level
Delivery is below forecast levels +/- 89%.
Customer Quality is unsatisfactory – Repeat Rejections
Changeovers are Lengthy and Costly
Project Goals
Reduce labor costs by 25%
Improve OEE ratings by 25%
Improve Line Balance
Eliminate Customer Defects
Reduce Internal Quality rejects
Achieve Production Yield Goals
SMED for Changeover Reduction

4. MEASURE
Op 10 AB - Process Measure
Mack Job #2800 - Monthly Production Averages
Op 10AB
18
16.9
16.4
16.116.5 16.5 16.5
16
14.4
14 14
12
10
8
%
G
o
a
f
l
6
4
H
A
P
d
u
o
p
g
c
e
s
a
v
r
t
.
2
0
April May June July
Month
Monthly Avg. Goal

5. MEASURE
Op 10 CD - Process Measure
Mack Job #2800 - Monthly Production Averages
Op 10CD
18
16 16
14.7 14.9 14.8
15 15
14
12.6
12.5
12
10
8
%
G
o
a
f
l
6
4
H
A
P
d
u
o
p
g
c
e
s
a
v
r
t
.
2
0
April May June July
Month
Monthly Avg. Goal

6. MEASURE
Op 20 AB - Process Measure
Mack Job #2800 - Monthly Production Averages
Op 20AB - 2 Operators
30
25.6
25
21
20 18.8 18.9
19 19
18 18
15
%
G
o
a
f
l
10
H
A
P
d
u
o
p
g
c
e
s
a
v
r
t
.
5
0
April May June July
Month
Monthly Avg. Goal

7. MEASURE
Op 20 A/B - Process Measure
Mack Job #2800 - S.M.E.D.
Apex Broach Changeover - Op# 20
9
8.5
8
7
6
5 5
4 4
3
m
C
T
o
g
n
h
v
e
a
r
i
2.25
2 2 2 2 2
1
0
April May June July
Month
APEX Changeover Tim e
goal

8. MEASURE
Op 30 / 40 - Process Measure
Mack Job #2800 - Monthly Production Averages
Op 30 Drill - Op40 Shape
20
18.8 18.9
18.0 19 19
18 18 18
16
14
14
12
10
%
G
o
a
8
f
l
6
4
H
A
P
d
u
o
p
g
c
e
s
a
v
r
t
.
2
0
April May June July
Month
Monthly Avg. Goal

9. ANALYZE
Analysis – Downtime and Scrap

10. ANALYZE Job #2800 – P/N 30KH430
Iverson Ind.
Production Control
Wapauca Weekly/Monthly
Foundry. Daily Update – Release
Email
Days - Weekly Schedule Arvin Meritor
Lead
Daily Ship
Schedule
and
Chg. Over
Chg. Over Chg. Over
Chg. Over
Rough Turn – Op Finish Turn – Op 10C,D Slot Broach Op 20 Drill Op 30
10A,B
Shape Op 40
Bulk
Storage
Cut Time (incl. Load) = Cut Time (incl. Load) = Cut Time (incl. Load) = Cut Time (incl. Load). = 150 sec
157 sec. 191 sec. 60 sec.
Chg./O Time = 30 Chg./O Time = 30 Chg./O Time = 1hr Chg./O Time = 1hr – 4 hr
min. min. – 4 hr
Avg. Uptime = Avg. Uptime = Avg. Downtime = Avg. Uptime =
Final Insp. Shipping
2 - 10 hr Shifts 2 – 10 hr Shifts 2 – 10hr Shifts 2 – 10hr Shifts
1 pc / pallet
127 100 191 70 40 90 120 90
sec sec sec sec sec sec sec sec
30 30 30 30 20 30 30
sec sec sec sec sec sec sec

11. IMPROVE
Improve Op 10 A/B/C/D
Op 10 A/B Rough Turn
Balance 10A and 10B cycle times by moving excess turning to the opposite operation to
achieve balance.
Revise and Retrain Operator Standards based upon a 100% target derived from actual
cycle time.
Measure and react to Downtime and First Time Quality negatives.
Op 10 C/D Finish Turn
Balance 10C and 10D cycle times by moving excess turning to the opposite operation to
achieve balance.
Revise and Retrain Operator Standards based upon a 100% target derived from actual
cycle time.
Measure and react to Downtime and First Time Quality negatives.

12. IMPROVE
Improve Op 20 A / B
Op 20 A/B Broach – Throughput
There is NO opportunity to improve operator efficiency without adding headcount.
Temporarily add 1 to 2 per shift
Follow Up project will pursue Material Handling Assistance to break this constraint and
allow headcount reduction to 1.
Op 20 A/B Broach – S.M.E.D. Changeover Reduction Phase 1
Project Start – Changeover averaged 8.5 hours at this Operation.
End of Project – 3 subsequent Changeovers have been completed with 1st piece approval
in 2.25 hours or less. A 73% Reduction

13. IMPROVE
Improve Op 30 Drill / Op 40 Shape
Op 30 Drill / Op 40 Shape
Throughput increased from 14 parts per hour to 18.8 parts per hour.
A 34% Improvement
Rewrite the program for the Mitsubishi Shaper to reduce Constraint cycle time.
Completed w/ 50% Reduction.
Op 30 Drill / Op 40 Shape – S.M.E.D. Changeover Reduction Phase 1
Project Start – Changeover averaged 3.6 hours at this Operation.
End of Project – 2 subsequent Changeovers have been completed with 1st piece approval
in 1.5 hours or less. A 42% Reduction
Op 30 Drill / Op 40 Shape – Setup Scrap Reduction Phase 1
Project Start – Changeover averaged 3 pieces at setup at this Operation.
End of Project – 2 subsequent Changeovers have been completed with 1st piece approval
on the first part (Zero setup scrap).

14. CONTROL
Control – Control Plans, LPA's
• Control Plans
–The Mack Control Plans have been thoroughly reviewed and scrutinized in
conjunction with PFMEA and Customer Feedback.
All revisions have been completed through document control.
Each Corrective Action (Internal / External) requires C.P. / PFMEA review.
• Layered Process Audits
Layered Audits are utilized to determine if Controls are adequate.
Layered Audits are supported and driven by Executive Management
Monthly Compliance Report - Layered Process Audit
120.0%
100.0%
LPA
80.0% Implementation
G
o
a
60.0%
l
90.9% 96.3% 95.7%
89.2% 87.4%
40.0%
20.0%
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
m
%
C
A
0.0%
p
h
n
o
y
a
e
s
t
f
l
'
JAN FEB MAR APR MAY JUNE JUL AUG SEP OCT NOV DEC
% OF C OMPLIAN C E: Goal Mack Truck

15. CONTROL
Control – Management Review
• Management Review
–The Mack project has been driven by weekly Management Review and
Action Assignment Sessions. Example

16. Project Summary
• Problem
–The Mack operation is not performing @ acceptable cost and / or
performance levels.
• Analysis and Solution
– The Mack Line as a whole is not well balanced. Individual Operations are
also imbalanced creating NVA wait time.
Post and Coach updated Targets for maximum throughput.
Re-Balance each operation to improve flow and throughput
Re-write machine programs to reduce cycle time and eliminate dead air
time with the tools.
• Results and Business Benefit(s)
– Op 10 A/B increased throughput 2.5 parts per hour or 17%
_ Op 10 C/D increased throughput 2.3 parts per hour or 18%
_ Op 20A/B – Decreased Changeover time by 73% (6.25 hours)
_ Op 30 / 40 increased throughput by 4.9 parts per hour or 35%

17. PROJECT SCORECARD
Productivity Improvement Report
Mack Line - Job # 2800 - P/N - 30KH 430
Parts Per Hour PPH
April May June July August Change ∆
10 AB Rough Turn 14.4 16.1 16.9 16.9 16.8 2.5 17.4%
10 CD Finish Turn 12.6 14.7 14.9 14.8 14.8 2.3 18.3%
20 AB Slot Broach 21 25.6 18.8 18.9 21
20 AB 3 Oper.s 44.0 44.0 44.0 44.0
30 Drill 14 18.0 18.8 18.9 19 4.9 35.0%
40 Shape 14.0 18.0 18.8 18.9 18.8 4.9 35.0%
APEX Changeover Time 8.5 5 5 3.5 2.25 -6.25 -73.5%
(Stick & Fixtures)