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APPLYING LEAN SIX SIGMA FOR WASTE
REDUCTION IN A MANUFACTURING
ENVIRONMENT
firdaus.albarqoni@gmail.com
Trisakti University...
firdaus.albarqoni@gmail.com 2
PRESENTATION OUTLINE
• INTRODUCTION
• CONCEPTS
 Quality Management and Quality Improvement
...
INTRODUCTION
This study was applied in a welding wire manufacturing plant
to improve the quality of the manufactured weldi...
CONCEPTS
firdaus.albarqoni@gmail.com 4
QUALITY MANAGEMENT AND QUALITY
IMPROVEMENT
firdaus.albarqoni@gmail.com 5
Quality
The fitness for use
or purpose at the
mos...
SIX SIGMA
firdaus.albarqoni@gmail.com 6
Six Sigma
A methodology for
quality
improvement
Define Measure Analyze Improve Con...
STATISTICAL SIGNIFICANCE OF SIX
SIGMA
The objective of Six Sigma quality is to reduce process output variation so that on ...
TOTAL QUALITY MANAGEMENT (TQM)
TQM is a process of embedding quality awareness and actions
at every step of production or ...
SUCCESS FACTORS FOR SIX SIGMA
IMPLEMENTATION
firdaus.albarqoni@gmail.com 9
Six Sigma Success Factors
• Management involvem...
LEAN MANAGEMENT
Lean Management was observed that the overall philosophy
provided a focused approach for continuous proces...
TYPES OF WASTES
Any operation in a process which does not add value to the
customer is considered ‘waste’.
firdaus.albarqo...
WASTE REDUCTION AS A QUALITY
IMPROVEMENT APPLICATION
The implementation was accomplished in two phases
firdaus.albarqoni@g...
PRIORITIZATION OF ALTERNATIVES USING
ANALYTIC HIERARCHY PROCESS
• In the AHP, the alternatives are structured hierarchical...
INDUSTRY APPLICATION
firdaus.albarqoni@gmail.com 14
DEFINE PHASE OF THE LSS PROJECT (1)
Supplier Input Process Output Customer
Steel Wire
Supplier
Steel Coils Drawing &
Cutti...
DEFINE PHASE OF THE LSS PROJECT (2)
In the first phase –the Define phase- of the current Six Sigma
(DMAIC) process there w...
DEFINE PHASE OF THE LSS PROJECT (3)
firdaus.albarqoni@gmail.com 17
8.024
5.346
6.605
7.471
6.9
6.14
4.9
4.25
0
1
2
3
4
5
6...
MEASURE PHASE (1)
The second phase of the DMAIC process is the Measure phase,
performed in four main steps:
firdaus.albarq...
MEASURE PHASE (2)
firdaus.albarqoni@gmail.com 19
Pareto Diagram of Waste Type
Reference:
American Journal of Industrial En...
SIGMA LEVEL CALCULATIONS (1)
To judge the process capability on producing defect free
products, one must properly define a...
SIGMA LEVEL CALCULATIONS (2)
DPU Calculation:
firdaus.albarqoni@gmail.com 21
The Yield data collected from the company in ...
ANALYZE PHASE
the fishbone diagram prioritizing the importance or criticality of each cause using a
tool such as the Paret...
PRIORITIZATION FOR THE MAIN CAUSES
OF WASTE
firdaus.albarqoni@gmail.com 23
Row Factor I Factor II
1 Man 9 8 7 6 5 4 3 2 1 ...
CALCULATED WEIGHTS OF THE MAIN
AND SUB-CAUSES
firdaus.albarqoni@gmail.com 24
Main Cause
Weight of
Main Cuase
Sub-Cause
Nor...
Ranking of the sub-causes weights
firdaus.albarqoni@gmail.com 25
0.007
0.008
0.015
0.016
0.027
0.028
0.029
0.056
0.057
0.0...
SUB-CAUSES BASED ON PARETO CHART
The 80-20 rule was used to recognize the sub-causes that have the
most influence on waste...
IMPROVE PHASE
firdaus.albarqoni@gmail.com 27
Improve
Waste Monitoring and
Reporting
New Control Panel
Contract New Supplie...
CONTROL PHASE
firdaus.albarqoni@gmail.com 28
Reference:
American Journal of Industrial Engineering, 2013, Vol. 1, No. 2, 2...
END OF PRESENTATION
THANK YOU
firdaus.albarqoni@gmail.com
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This presentation is a discussion on the subject of Lean Six Sigma in the program of master management at Trisakti University Indonesia.

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APPLYING LEAN SIX SIGMA FOR WASTE REDUCTION IN A MANUFACTURING ENVIRONMENT

  1. 1. APPLYING LEAN SIX SIGMA FOR WASTE REDUCTION IN A MANUFACTURING ENVIRONMENT firdaus.albarqoni@gmail.com Trisakti University Magister of Management Firdaus Albarqoni 122140058 Jakarta, January 2016 A Journal Review American Journal of Industrial Engineering, 2013, Vol. 1, No. 2, 28-35 (Mohamed K. Hassan)
  2. 2. firdaus.albarqoni@gmail.com 2 PRESENTATION OUTLINE • INTRODUCTION • CONCEPTS  Quality Management and Quality Improvement  Six Sigma  Statistical Significance of Six Sigma  Total Quality Management  Success Factors for Six Sigma Implementation  Lean Management  Types of Wastes  Waste Reduction As A Quality Improvement Application  Prioritization of Alternatives Using Analytic Hierarchy Process • INDUSTRY APPLICATION  Define Phase of the LSS Project  Measure Phase  Analyze Phase  Improve Phase  Control Phase
  3. 3. INTRODUCTION This study was applied in a welding wire manufacturing plant to improve the quality of the manufactured welding wires, reduce the manufacturing waste and increase the yield of the manufacturing process, by applying the Lean Six Sigma (LSS) methodology and waste management firdaus.albarqoni@gmail.com 3 Define Measure Analyze Improve ControlReference: George, M. L., Rowlands, D. and Kastle, B. What is Lean Six Sigma, McGraw-Hill, New York, 2004.
  4. 4. CONCEPTS firdaus.albarqoni@gmail.com 4
  5. 5. QUALITY MANAGEMENT AND QUALITY IMPROVEMENT firdaus.albarqoni@gmail.com 5 Quality The fitness for use or purpose at the most economical level Design Manufacture Assembly Effective Procedure Control Purpose Part of Reference: Vijayaram, T. R., Sulaiman, S., Hamouda, A. M. and Ahmad, M. H., Foundry quality control aspects and prospects to reduce scrap rework and rejection in metal casting manufacturing industries, Journal of Materials Processing Technology, 178: 39-43, 2006.
  6. 6. SIX SIGMA firdaus.albarqoni@gmail.com 6 Six Sigma A methodology for quality improvement Define Measure Analyze Improve Control what problem needs to be solved? What is the capability of the process? When and where do defects occur? How the process capability can be improved What control can be put in place to sustain the gain? Reference: Raisinghani, M. S., Six Sigma: concepts, tools, and applications, Industrial Management & Data Systems, 105 (4): 491-505, 2005.
  7. 7. STATISTICAL SIGNIFICANCE OF SIX SIGMA The objective of Six Sigma quality is to reduce process output variation so that on a long term basis, which is the customer’s aggregate experience with our process over time, this will result in no more than 3.4 defect parts per million (PPM) opportunities (or 3.4 defects per million opportunities – DPMO) firdaus.albarqoni@gmail.com 7 Reference: Pyzdek, T., The Six Sigma Handbook Revised and Expanded. McGraw-Hill, United States, 2003.
  8. 8. TOTAL QUALITY MANAGEMENT (TQM) TQM is a process of embedding quality awareness and actions at every step of production or service while targeting the end customer. TQM has culminated Six Sigma which targets 99.99927% defect free manufacturing. firdaus.albarqoni@gmail.com 8 TQM Strategy Continuous Improvement Reference: Black, k. and Revere, l., Six Sigma arises from the ashes of TQM with a twist, International Journal of Health Care Quality Assurance, 19 (3): 259-266, 2006
  9. 9. SUCCESS FACTORS FOR SIX SIGMA IMPLEMENTATION firdaus.albarqoni@gmail.com 9 Six Sigma Success Factors • Management involvement and commitment. • Culture change. • Communications. • Organization infrastructure. • Training as a parallel learning structure • Linking Six Sigma to business strategy, customer, suppliers and human resources. • Project Management skills and how it is linked to quality management • Understanding tools and techniques within Six Sigma environment. • Project prioritization and tools. Reference: Kwaka, Y. H. and Anbaribi, F. T., Benefits, obstacles, and future of Six Sigma approach, Technovation, 26:708-715, 2006.
  10. 10. LEAN MANAGEMENT Lean Management was observed that the overall philosophy provided a focused approach for continuous process improvement and the targeting of a variety of tools and methods to bring about such improvements. Effectively, the philosophy involves eliminating different types of process or actually thinking waste. firdaus.albarqoni@gmail.com 10 Eliminating Waste Remove non- value added process Effectiveness & Efficiency Reference: Rathje, M. S., Boyle, T. A. and Deflorin, P., Lean take two Reflections from the second attempt at Lean implementation, Business Horizons, 52: 79-88, 2009.
  11. 11. TYPES OF WASTES Any operation in a process which does not add value to the customer is considered ‘waste’. firdaus.albarqoni@gmail.com 11 Seven Types of Waste • Over Production • Waiting time • Transportation • Over Processing • Inventory • Motion • Defects Reference: Melton, T., The Benefits of Lean Manufacturing What Lean Thinking has to Offer the Process Industries, Chemical Engineering Research and Design, 83 (A6): 662-673, 2005.
  12. 12. WASTE REDUCTION AS A QUALITY IMPROVEMENT APPLICATION The implementation was accomplished in two phases firdaus.albarqoni@gmail.com 12 Phase 1 • Define organization • Define and document methods • Establish measurements • Present/Market initiative to manufacturing plants Phase 2 • Audit plant methods and progress • Review/audit specific manufacturing processes • Coordinate design review efforts with product engineering • Interact with and assist plant teams • Provide systems support • Refine methodologies, reports, etc. • Report to the company steering committeeReference: American Journal of Industrial Engineering, 2013, Vol. 1, No. 2, 28-35 (Mohamed K. Hassan).
  13. 13. PRIORITIZATION OF ALTERNATIVES USING ANALYTIC HIERARCHY PROCESS • In the AHP, the alternatives are structured hierarchically at different levels, each level consisting of a finite number of elements that may contribute to the decision making process. The relative importance of the decision elements. • The most effective way to rationalize judgments is to take a pair of elements and compare them on a single property without concern for other properties or other factors firdaus.albarqoni@gmail.com 13 Reference: Saaty, T. L., How to make a decision: The Analytic Hierarchy Process, European Journal of Operational Research, 48: 9-26, 1990.
  14. 14. INDUSTRY APPLICATION firdaus.albarqoni@gmail.com 14
  15. 15. DEFINE PHASE OF THE LSS PROJECT (1) Supplier Input Process Output Customer Steel Wire Supplier Steel Coils Drawing & Cutting Cut Wire Drawing Dept. Powder & Silicate Supplier Powder Sodium & Potassium Flux Preparation Flux Paste Preparation Dept. Drawing & Flux Preparation Dept. Cut Wire & Flux Extrusion & Drying Welding Wire Extrusion Dept. Extrusion Dept. Welding Wire Packing Packed Wire Packing then End User Start Boundary: Raw Materials from Suppliers End Boundary: Final Product to End Users firdaus.albarqoni@gmail.com 15 Reference: American Journal of Industrial Engineering, 2013, Vol. 1, No. 2, 28-35 (Mohamed K. Hassan).
  16. 16. DEFINE PHASE OF THE LSS PROJECT (2) In the first phase –the Define phase- of the current Six Sigma (DMAIC) process there were four main steps implemented as follows: • Investigation of the Company Processes & Work Environment • Drafting the Supplier, Input, Process, Output, and Customer (SIPOC) Diagram. • Collecting Preliminary Data • Writing Problem Definition Statement firdaus.albarqoni@gmail.com 16 Reference: American Journal of Industrial Engineering, 2013, Vol. 1, No. 2, 28-35 (Mohamed K. Hassan).
  17. 17. DEFINE PHASE OF THE LSS PROJECT (3) firdaus.albarqoni@gmail.com 17 8.024 5.346 6.605 7.471 6.9 6.14 4.9 4.25 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 2009 2010 2011 2012 Waste(Percent) Production(ThousandsTon) Waste in Years 2009-2012 Production (Ton) Waste (%) Reference: American Journal of Industrial Engineering, 2013, Vol. 1, No. 2, 28-35 (Mohamed K. Hassan).
  18. 18. MEASURE PHASE (1) The second phase of the DMAIC process is the Measure phase, performed in four main steps: firdaus.albarqoni@gmail.com 18 Process Mapping Data Collection Sigma Level Calculation Down Time Measurement Reference: American Journal of Industrial Engineering, 2013, Vol. 1, No. 2, 28-35 (Mohamed K. Hassan). • defective incoming wire • Defective flux paste • Defective welding wire or electrodes
  19. 19. MEASURE PHASE (2) firdaus.albarqoni@gmail.com 19 Pareto Diagram of Waste Type Reference: American Journal of Industrial Engineering, 2013, Vol. 1, No. 2, 28-35 (Mohamed K. Hassan).
  20. 20. SIGMA LEVEL CALCULATIONS (1) To judge the process capability on producing defect free products, one must properly define and quantify the process defects per unit (DPU), and the defects per million opportunities (DPMO). firdaus.albarqoni@gmail.com 20 Normal Distribution Model: Reference: American Journal of Industrial Engineering, 2013, Vol. 1, No. 2, 28-35 (Mohamed K. Hassan).
  21. 21. SIGMA LEVEL CALCULATIONS (2) DPU Calculation: firdaus.albarqoni@gmail.com 21 The Yield data collected from the company in 2012 are used to calculate the sigma level as follows: In 2012 the defective ratio was 4.25%, then Yield = 1-deffective ration = 1-4.25 = 95.75% Y = 0.9575 Reference: American Journal of Industrial Engineering, 2013, Vol. 1, No. 2, 28-35 (Mohamed K. Hassan).
  22. 22. ANALYZE PHASE the fishbone diagram prioritizing the importance or criticality of each cause using a tool such as the Pareto chart. In this work a judgmental model, known as the Analytical Hierarchy Process (AHP), was also applied to prioritize the criticality of the different causes of waste. firdaus.albarqoni@gmail.com 22 Reference: American Journal of Industrial Engineering, 2013, Vol. 1, No. 2, 28-35 (Mohamed K. Hassan).
  23. 23. PRIORITIZATION FOR THE MAIN CAUSES OF WASTE firdaus.albarqoni@gmail.com 23 Row Factor I Factor II 1 Man 9 8 7 6 5 4 3 2 1 2 3 4 5 6 7 8 9 Material 2 Man 9 8 7 6 5 4 3 2 1 2 3 4 5 6 7 8 9 Environment 3 Man 9 8 7 6 5 4 3 2 1 2 3 4 5 6 7 8 9 Machine 4 Man 9 8 7 6 5 4 3 2 1 2 3 4 5 6 7 8 9 Method 5 Material 9 8 7 6 5 4 3 2 1 2 3 4 5 6 7 8 9 Environment 6 Material 9 8 7 6 5 4 3 2 1 2 3 4 5 6 7 8 9 Machine 7 Material 9 8 7 6 5 4 3 2 1 2 3 4 5 6 7 8 9 Method 8 Environment 9 8 7 6 5 4 3 2 1 2 3 4 5 6 7 8 9 Machine 9 Environment 9 8 7 6 5 4 3 2 1 2 3 4 5 6 7 8 9 Method 10 Machine 9 8 7 6 5 4 3 2 1 2 3 4 5 6 7 8 9 Method Evaluation Reference: American Journal of Industrial Engineering, 2013, Vol. 1, No. 2, 28-35 (Mohamed K. Hassan). AHP Inputs from First Decision Maker
  24. 24. CALCULATED WEIGHTS OF THE MAIN AND SUB-CAUSES firdaus.albarqoni@gmail.com 24 Main Cause Weight of Main Cuase Sub-Cause Normalized Weight of Sub-Cause Insufficient skills of workers 0.015 Lack of internal communication 0.056 Lack of awareness of quality culture 0.008 Poor employee loyalty 0.027 Process shutdown due to lack of raw materials 0.222 Low lighting 0.016 Not clean work area 0.057 Small powder mixing area 0.007 Old fashion equipment 0.240 Number of reclaiming machines not sufficient 0.073 Die box diameter adjustment deviation 0.028 Poor control of water glass mixing 0.119 Repetitive power failure 0.029 Poor maintenance planning 0.104 1.000 SUM 1.000 Machine 0.310 Method 0.277 Man 0.104 Material 0.219 Environment 0.090 Reference: American Journal of Industrial Engineering, 2013, Vol. 1, No. 2, 28-35 (Mohamed K. Hassan).
  25. 25. Ranking of the sub-causes weights firdaus.albarqoni@gmail.com 25 0.007 0.008 0.015 0.016 0.027 0.028 0.029 0.056 0.057 0.073 0.104 0.119 0.222 0.240 0.000 0.050 0.100 0.150 0.200 0.250 0.300 Small powder mixing area Lack of awareness of quality culture Insufficient skills of workers Low lighting Poor employee loyalty Die box diameter adjustment deviation Repetitive power failure Lack of internal communication Not clean work area Number of reclaiming machines not sufficient Poor maintenance planning Poor control of water glass mixing Process shutdown due to lack of raw materials Old fashion equipment Weight Reference: American Journal of Industrial Engineering, 2013, Vol. 1, No. 2, 28-35 (Mohamed K. Hassan).
  26. 26. SUB-CAUSES BASED ON PARETO CHART The 80-20 rule was used to recognize the sub-causes that have the most influence on waste generation using the Pareto chart. The rule showed that, there are six sub-causes that account for 80% of the waste generation as follows: • Old fashion equipment • Process shutdown due to lack of raw materials • Poor control of water glass mixing • Poor maintenance planning • Number of reclaiming machines not sufficient • Not clean working area These causes were considered in the improve phase of the Lean Six Sigma process to be addressed for possible improvement according to the available company resources. firdaus.albarqoni@gmail.com 26 Reference: American Journal of Industrial Engineering, 2013, Vol. 1, No. 2, 28-35 (Mohamed K. Hassan).
  27. 27. IMPROVE PHASE firdaus.albarqoni@gmail.com 27 Improve Waste Monitoring and Reporting New Control Panel Contract New Supplier Replace Glass Mixing Machine Complete Maintenance Program Add New Reclaiming Machine Clean The Working Area Restricted instructions to avoid any unpacked products Reference: American Journal of Industrial Engineering, 2013, Vol. 1, No. 2, 28-35 (Mohamed K. Hassan).
  28. 28. CONTROL PHASE firdaus.albarqoni@gmail.com 28 Reference: American Journal of Industrial Engineering, 2013, Vol. 1, No. 2, 28-35 (Mohamed K. Hassan). Accomplished Recommendation Planned Actions for Control Frequency Responsibility A contract with a new supplier for steel wire was established Evaluation for all suppliers Three months Purchasing Department Mixing machine replaced by a more reliable counter Predictive and Preventive maintenance as per manual Weekly Maintenance Departement Complete maintenance was implemented to the drawing and cutting machine Predictive and Preventive maintenance as per manual Weekly Maintenance Departement Cleaning process of the work space Set schedule forcleaning with a checklist and signature Daily Production Departement Instructions for engineers to avoid having any unpacked prduct Ensure that there is no unpacked products Daily Production Departement
  29. 29. END OF PRESENTATION THANK YOU firdaus.albarqoni@gmail.com
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This presentation is a discussion on the subject of Lean Six Sigma in the program of master management at Trisakti University Indonesia.

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