Case Study SSG110 Lean Six Sigma
Can you complete the case study?
Project_Charter
DELIVERABLE MODULE 3 – PROJECT CHARTER
Project Title:
Black Belt Project Champion Executive Sponsor MBB/Mentor
Problem Statement Business Case
Project Goals Project Scope
High Level Project Timeline Constraints & Dependencies Project Risks Additional Information
Phase Start Finish
Identify Value
Map the Value Stream
Create Flow
Establish Pull
Seek Perfection
Approval/Steering Committee Stakeholders & Advisors Project Team & SME’s
Name Organization Name Organization Name Organization
VILLANOVA UNIVERSITY
High Level Process Map
DELIVERABLE MODULE 4 – HIGH-LEVEL PROCESS MAP
Please add in extra processes and symbols as needed
SIPOC
DELIVERABLE MODULE 4 – SIPOC
Introduction and Instructions for SIPOC
SIPOC is an acronym that stands for supplier, input, process, output and customer
A SIPOC is a process mapping variant that for each process step identifies the inputs, the suppliers (internal or external) for those inputs, the outputs and the customers (internal or external) for that output
Using the template below, begin by filling in the “Process” column with the process steps identified in the high-level process map
Then, for each process step identify the inputs, the suppliers (internal or external) for the inputs, the outputs and the customers (internal or external) for the outputs
S.I.P.O.C. Template
Suppliers Inputs Process Outputs Customers
VILLANOVA UNIVERSITY
Start
Step 1
Step 2
Step 3
Step 4
End
VSM
DELIVERABLE MODULE 4 – VSM
Supplier Customer
Information Information
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Copyright 2016 GoLeanSixSigma.com. All Rights Reserved.
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Cause_Effect_Diagram
DELIVERABLE MODULE 5- CAUSE AND EFFECT DIAGRAM
Instructions:
STEP 1 : Define the problem. What is the product, process or service that has failed.
STEP 2 : Starting with ‘Materials’ or any other label, ask: is there anything about materials that
might contribute to the problem. Record it next to one of the arrows under Materials.
STEP 3 : Repeat asking “is there anything about materials that might contribute to the problem”
Problem Record each result next to an arrow.
STEP 4 : Repeat Step 2 & 3 for each successive category.
STEP 5 : Identify the candidates that are the most likely Root Cause
STEP 6 : If further “screening” is necessary, assess the likely Root Causes using the “Impact”
and “Implement” matrix, selecting items marked 1, then 2 . . . 4 as priorities.
Pareto
DELIVERABLE MODULE 5 – PARETO CHART
Categories # of Occurrences
Issue 1
Issue 2
Issue 3
Issue 4
Issue 5
5-Why’s
DELIVERABLE MODULE 5 – 5 WHY’S
5-WHY ANALYSIS SHEET
Note: Continue on separate page if 5-Whys are not enough to determine root cause.
WHY ? #1:
WHY ? #5
WHY ? #2:
WHY ? #4
WHY ? #3
TEMPORARY Date:
COUNTERMEASURES
FINAL COUNTERMEASURE Name:
– PERMANENT CORRECTIVE ACTION Date:
VERIFICATION:
No Recurrence in Three Months? TBD Date:
Single-Point Lesson? _________ Date ________
DO THE 5 WHY’S MAKE SENSE WHEN READ BACKWARD?
Waste Walk
DELIVERABLE MODULE 6 – WASTE WALK
8 Wastes/Waste Walks
Defects – Re-adjusting process parameters, reworking finished products, off spec materials Defects
Overproduction – Making anything sooner, faster or in excess of customer requirements Overproduction
Waiting – Waiting for raw materials, maintenance personnel, processes to finish, and instructions Waiting
Non Utilized Talent – Workers not involved in improvement areas; input or feedback ignored. Changes without consulting workers and employees not challenged Non Utilized Talent
Transportation – Putting products in work-in-progress areas and moving materials due to poor layout Transportation
Inventory (Excess) – Work-in-progress, rework waiting for testing, excessive raw and finished products Inventory
Motion (Excess) – Moving tools and people to defferent areas, excessing manual material movement Motion
Excessive Processing – Excessive Quality checks, Performing operations not required Excessive Processing
Waste Type Describe the waste you saw
Root Cause Analysis
Deliverable Module 6 Root Cause Analysis
Root Cause Analysis (Please state your conclusions)
Kanban
DELIVERABLE MODULE 7 – KANBAN
KANBAN CARD
Part Description/Picture if Applicable Part Number Profile
QTY. Lead Time Due Date
Supplier Location Card #
1 OF 2
KANBAN CARD
Part Description/Picture if Applicable Part Number Profile
QTY. Lead Time Due Date
Supplier Location Card #
2 OF 2
Audit_Checklist
DELIVERABLE MODULE 7 – AUDIT
Audit Checklist
Target Area: Statement of Audit Objective: Auditor: Audit Date:
Audit Technique Auditable Item, Observation, Procedure etc. Individual Auditor Rating (Circle Rating)
Observation Have all associates been trained? YES NO
Observation Is training documentation available? YES NO
Observation Is training documentation current? YES NO
Observation Are associates wearing proper safety gear? YES NO
Observation Are SOP’s available? YES NO
Observation Are SOP’s current? YES NO
Observation Is quality being measured YES NO
Observation Is sampling being conducted in random fashion YES NO
Observation Is sampling meeting it’s sample size target? YES NO
Observation Are control charts in control YES NO
Observation Are control charts current? YES NO
Observation Is the process capability index >1.0? YES NO
Number of Out of Compliance Observations
Total Observations
Audit Yield ERROR:#DIV/0!
Corrective Actions Required
Auditor Comments
VILLANOVA UNIVERSITY Villanova University
College of Professional Studies
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Case Study:
Lean
Process Improvement
Nova Point
Tina Agustiady
Certified Six Sigma Master Black Belt
Villanova University
College of Professional Studies
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Executive Summary
Nova Point is a growing product for a main ice-cream factory named Uncle Ts.
The product is selling extremely well, and sales have been rising for the past
year. Over the past year, with the increase of sales there also has been an
increase in complaints for thick or thin ice-cream. Customers felt that some ice-
cream was too thick losing the fluffy texture and some had thin ice-cream that
melted too quickly in their mouth making it feel like a liquid. Poor quality of the
Nova Point causes thick or thin product resulting in major quality variation in the
product due to materials, methods, machinery, measurements, manpower or
mother nature. The product is made in two main factories, but most of the
problems are coming from one factory. The product with the problems is made
on a production line where the temperature is warm within the factory. They are
also scrapping a great amount of product due to the product now being inedible.
It goes through a series of processes mainly kettles where raw materials enter
and then go through a series of mixing steps. The materials are then pumped out
onto a production line and packaged. The current First Pass Quality is 91% and
there are many holds on the product due to thick or thin product that is held
within the factory before it is sent to the customer.
The goals of the project are to:
Increase first pass quality from 91% to 99%
Reduce holds by 10%
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Methodology
Determine improved process for thick/thin issues while implementing
specifications for ingredients
Determine the waste coming from the product/process
Create standardized work and train all associates
Determine proper preventative maintenance for equipment
Determine possible equipment replacement and/or upgrades
What is Lean?
Lean is the pursuit of perfection via a systematic approach to identifying and
eliminating waste through continuous improvement of the value stream,
enabling the product and information to flow at a rate determined by the pull of
the customer.
The five principles of lean are:
Identify Value
Map the Value Stream
Create Flow
Establish Pull
Seek Perfection
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Figure 1. Lean System
Introduction
Tina Agustiady Continuous Improvement Leader
Tom Jones Operator
Michelle VanHutson Operator
John George Production Engineer
Nancy Feller Maintenance Coordinator
Todd Peterson Plant Manager and Project Champion
Andy Myers Executive Sponsor
Master Black Belt Michael Bell
The team was selected based on knowledge and expertise of the process.
The team did a great job and was proficient and organized during the project.
Identify
Value
Map the
Value
Stream
Create
Flow
Establish
Pull
Seek
Perfection
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IDENTIFY VALUE
A project charter is developed to show responsible personnel, problem
statements, goals, and timelines.
PROJECT CHARTER PURPOSE
The purpose of this Continuous Improvement project is to pilot the CI
methodology in a factory utilizing a structured approach and being able to
benchmark the findings across processes. We want to identify where we
can add value, and this can be seen through the project charter.
PROJECT EXECUTIVE SUMMARY
Determine the improved process for thick/thin issues while
implementing specifications for ingredients
Determine the waste coming from the product/process
Create standard work and train all associates
Determine proper preventative maintenance for machinery
Determine possible equipment replacement and/or upgrades
PROJECT OVERVIEW
Business Justification consists of reducing thin/thick Issues associated on
the manufacturing line and increasing first pass quality (FPQ).
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PROJECT GOALS
Table 1. Project Goals
Goals Objectives
Increase first pass
quality (FPQ) to 99%
and reduce holds by
10%
Determine manufacturing process along with
specifications and reduce thick/thin issues
Determine if target specifications are accurate
or need to be revised
Train all personnel on manufacturing process
and create manual
Determine proper preventative maintenance for
machinery
Measure initial viscosity and temperatures for
correlation vs 24-hour viscosity
Table 2. Milestones and Deliverables
Milestone Deliverable
1. Conduct Training Identify training dates
2. Create Manual Manual will be for documentation and training
purposes
3. Create preventative
maintenance (PMs) for
main equipment
PMs will be established, and sign off sheets will be
available
4. Benchmark factory with
best practices
Determine best in-class process and implement in
both manufacturing plants
5. Reduce holds and
consumer concerns by
10%
Determine correlation between holds and consumer
concerns
6. Determine root causes
of each hold and
Ongoing
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consumer concern and
document action plan
7. Maintain consumer
concerns under 2.5M
pounds, focusing on v-
line
Ongoing
8. Reduce material waste
from icings and v-line
back to 2018 levels or
better
Ongoing
9. Improve consistency
and reduce variation
from v-line process
Ongoing
Deliverable Module 3
Please fill out a project charter from the Excel templates provided.
Figure 2. Project Charter
Phase Start Finish
Identify Value
Map the Value
Stream
Create Flow
Establish Pull
Seek Perfection
Organization
Approval/Steering Committee Stakeholders & Advisors Project Team & SME’s
Name Organization Name Organization Name
High Level Project Timeline Constraints & Dependencies Project Risks Other Diagnostics
Project Goals Project Scope
Primary Metric Secondary Metric
Problem Statement Business Case
Project Title:
Black Belt Project Champion Executive Sponsor MBB/Mentor
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MAP THE VALUE STREAM
Three levels of process mapping can be utilized in order to visualize the process steps
as they occur, understand the process and to provide a baseline of the current process
as a starting point for improvements. Three levels of process mapping are:
A high-level process map
A SIPOC
A value stream map (VSM)
The manufacturing process is defined as the following:
Place icing in Kettle 1
Complete a shortening quality check
Transfer icing to Kettle 2
Complete a viscosity check
Transfer product to final assembly
Perform final quality check
Package product
HIGH-LEVEL PROCESS MAP
In a high-level process map, also known as a macro level process map,
the major process steps are defined in the order that they occur. Think of
this as a 50,000-foot view of the process. Additional detail can be added to
the high-level process map as needed as the project proceeds.
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SIPOC
SIPOC is an acronym that stands for supplier, input, process, output and customer.
A SIPOC is a process mapping variant that for each process step identifies the inputs,
the suppliers (internal or external) for those inputs, the outputs and the customers
(internal or external) for that output
VALUE STREAM MAPPING
A value stream map is a form of process mapping that identifies the flow of
information in addition to process flow. It is also designed to collect data about
process steps.
Here is information for the VSM map:
1. First, label the process steps with the steps from the High-Level Process Map.
You will have to add a couple more steps to the Value Stream Map template
2. Then, transfer the following data onto the Value Stream Map: Cycle Time
(C/T), Change-over Time (C/O time), FPY (First Pass Yield), and Percent
Holds. You will have to replace or eliminate some of the other symbols in the
data blocks (if you are curious what the existing data acronyms mean, see the
note at the end of this instruction)
Process Steps
(Value Added)
C/T
(hours)
C/O
(hours)
FPY
(%)
Holds
(%)
Icing in Kettle 1 6.0 0.5 98% 0%
Shortening
Quality Check
1.0 0.0 85% 20%
Icing Transfers
to Kettle 2
3.0 0.5 98% 0%
Check Viscosity 1.0 0.0 76% 25%
Transfer to Final
Assembly
1.5 0.5 98% 0%
Final Quality
Check
0.5 0.0 95% 5%
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Package Product 2.0
0.25
96% 0%
For example, the data block for the first step will look like this:
C/T 6.0
C/O 0.5
FPY 98%
Holds 0%
3. Fill in the value-added times on the timeline below each step the map, using
the cycle time (C/T) for that step.
4. Add the inventories before each process step in the triangles, or right below the
triangles if you like.
Process Steps
(Value Added)
Inventory
before Step
(Non-Value
Added), in tons
Icing in Kettle 1 15
Shortening
Quality Check
3
Icing Transfers
to Kettle 2
5
Check Viscosity 3
Transfer to Final
Assembly
10
Final Quality
Check
5
Package Product 10
5. Fill in the non-value-added times below each inventory. You will have to
convert the tons of inventory before each step into hours of inventory. Assume
the customer demand is 50 tons per day. This is 2.08 tons per hour. Then for
the step Icing in Kettle 1, you would have 15/2.08 = 7.2 hours on inventory. Do
this same calculation for each inventory and put those values on the timeline.
6. Add up the value-added times from the timeline. Then add up separately the
non-value added (wait) times. Finally, calculate the total lead time for the
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process by adding the value-added and wait time totals. Show the total lead
time anywhere above the value stream.
Total Lead Time = Total Value- Added Times + Total Wait Times
7. Calculate the Cycle Efficiency and show this next to the total lead time:
Cycle Efficiency = 100% * Value Added Time
Total Lead Time
Deliverables Module 4
Please complete the three levels of process maps using the Excel template
provided :
High-level process map of the current process
SIPOC
High -level value stream map (VSM)
ROOT CAUSE ANALYSIS (RCA)
RCA includes a very structured approach to investigating issues for a permanent fix of a
problem. What is sought is the true or root cause of the problem, which many people
mistake with short-term fixes. Guards put in place on manufacturing lines and buckets
put in place to eliminate waste are examples of short fixes. The problem still occurs,
there is just a measure put in place to try and eliminate the waste. The problem is not
prevented from happening as a result of short-term fixes.
RCA explores the possible causes of problems to determine the root cause. Even
though assumptions are utilized for RCA, they should be backed up with documentation
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and data. Data driven conclusions should be made. RCA can also point out possible
areas where data can be collected.
The three RCA tools that this project will use are
Cause and effect diagram
Pareto charts
5 Whys
Cause and Effect Diagram
A Cause and Effect Diagram will examine the importance of the different
variables that play a part in the thin and thick holds.
Steps to conducting a Cause and Effect or Fishbone Diagram include:
Brainstorm all possible causes of the problem or effect selected by classifying
ideas under the following categories (6Ms):
o Manpower
o Machinery
o Methods
o Measurements
o Materials
o Environment (Mother Nature)
Focus on the quantity of ideas rather than quality. One persons idea will
trigger someone elses idea, and a chain reaction will occur
No Criticism allowed, ALL team members must participate
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Deliverable Module 5
Please complete a Cause and Effect Diagram using the Excel template
provided.
Pareto Chart
A pareto chart is completed to see what the biggest reasons are for having
quality problems. A pareto chart is a visual root cause analysis tool that displays
the type of problem versus the frequency of them to determine which are the
biggest problems to focus on.
Data was collected about the problem:
Categories (Causes) # of Occurrences
Water in pipe 55
Liquid sucrose 25
Supplier providing out of spec materials 48
Clean out water not purged 32
Quality of shortening 41
Deliverable Module 5
Please complete a Pareto Chart using the Excel template and the
information provided.
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Automatically it could be seen according to the pareto chart that the water in the
pipe needed to be dealt with along with product specifications and the quality of
the shortening in that order.
Finally, specifications were gathered to ensure the process was on target:
83% of Holds in Factory A are for Viscosity
Factory B has wider specs for Viscosity due to different Uses
Factory B requires tighter spec range
Factory A specs: Viscosity: 200,000 600,000 cps
Factory B specs: Viscosity: 320,000 512,000 cps
5 Whys
The 5 Whys is a root cause analysis tool where the question why is asked 5
times to drill down from the symptom to the root cause of a problem.
A 5 Whys analysis to understand why the water was clogging in the pipe can be
done by referencing the figure below.
Figure 3. Water Pipe
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Deliverable Module 5
Please complete a 5 Whys analysis on the water in the pipe issue using the
Excel template provided.
CONCLUSION OF MAP THE VALUE STREAM
Data was taken of as many parameters as possible before changing any
variables. It was found that piping was making a significant impact on the
process and there needed to be analysis completed for that.
The following was accomplished during the mapping of the value system:
Process Mapping
Data Gathering
Cause and Effect Diagram
Root Cause Analysis
Pareto Chart
5 Whys
CREATE FLOW
WASTE WALK (GOING TO GEMBA)
It is important to understand the types of waste that were occurring in the
process. The team decided to do a floor walk (Go to Gemba) to find the main
types of waste according to the acronym DOWNTIME.
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Deliverables Module 6
Please complete the Waste Walk tab in the Excel template provided.
Be creative here, there are no right or wrong answers!
Please complete the RCA tab in the Excel template provided as to
why the water is clogging in the piping system. What is the key
factor for the root cause of the thick/thin product issue?
CONCLUSION OF CREATE FLOW
In Lean management, flow is a key concept. Since any kind of waiting is a waste,
when creating a flow of value, your goal is to ensure smooth delivery from the
second you receive an order to the moment when you deliver it to the customer.
Hints to improving flow:
Map the process
Talk to Subject Matter Experts about issues
Identify all types of different waste in the current process
Map an ideal state the perfect process
Develop an action plan
Actively monitor the new processes put into place by creating performance
measures
Think about places where batch processing can be changed to single
piece flow
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ESTABLISH PULL
The team decided to change the piping so that water could flow quicker through the
piping to make more consistent product that was in specification. The extra water in the
pipe could make the product thin by dispersing too much water from the pipe or too
thick by not having enough water because it was stuck in the pipe.
The changes to the piping were made immediately:
Figure 4. Changes to Piping
Ensure Pipe from Pipe #1 to Product is purged and has no residual
water
Changed pitchRemoved sweep
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Since the temperature of 235 degrees in Factory A seemed to have better specifications
than Factory B at a lower temperature, we decided to benchmark and make a Standard
Operating Procedure to heat the product to 235 degrees.
KANBAN
The team noticed that all of the raw ingredients were brought to the line at the
beginning of the shift. This caused some of the ingredients to start melting
before they were put in the kettle.
The team decided to setup a Kanban system in order to have the ingredients
come to the line at the proper temperature and just in time for them to use them.
Deliverable Module 7
Please complete the Kanban card(s) in the Excel template by filling out the
following information:
Part Description/Picture if Applicable
Part Number
Profile
Quantity
Lead Time
Due Date
Supplier
Location
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Card Number (Generally two Kanban cards 1 of 2 and 2 of 2)
CONCLUSION OF ESTABLISH PULL
Many opportunities were identified, and action items were completed to improve
the variation issues for Nova Point.
Piping changes to ensure water is not stuck in 3-way valve of pipe
Benchmark Factory A
Training to teach all operators how to make product properly and
consistently
Temperature changes to Benchmark Factory A
The three major variables are:
Variable 1 Piping
After several tests and data analysis, the thin and thick issues
were minimized after the piping changes
Therefore, the piping changes were significant and were an impact and
root cause of the thick/thin product issues.
Variable 2 Specifications for Thin or Thick Product
We also spoke to the supplier and changed our specification
ranges with them saying we would no longer take any raw
material out of specification because it was ruining our
reputation.
Variable 3 Temperatures
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The temperature of 235 degrees in Factory A seemed to have better
specifications than Factory B at a lower temperature.
SEEK PEFECTION
An audit checklist will be used to perform continual audits to ensure the improved
manufacturing process is sustained.
Deliverable Module 7
Please complete an Audit Checklist to ensure the process is sustained.
CONCLUSION TO PROJECT
One major change was made as a result of the project involving the piping. The water
was being trapped in a pipe, making the product thick or thin based on whether the
Target Area: Statement of Audit Objective: Auditor: Audit Date:
Audit Technique Auditable Item, Observation, Procedure etc.
Observation Have all associates been trained? YES NO
Observation Is training documentation available? YES NO
Observation Is training documentation current? YES NO
Observation Are associates wearing proper safety gear? YES NO
Observation Are SOP’s available? YES NO
Observation Are SOP’s current? YES NO
Observation Is quality being measured YES NO
Observation Is sampling being conducted in random fashion YES NO
Observation Is sampling meeting it’s sample size target? YES NO
Observation Are control charts in control YES NO
Observation Are control charts current? YES NO
Observation Is the process capability index >1.0? YES NO
#DIV/0!
Auditor Comments
Audit Checklist
Individual Auditor Rating
(Circle Rating)
Number of Out of Compliance Observations
Total Observations
Audit Yield
Corrective Actions Required
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water purged from the pipe. The pipe was changed and immediately the problem was
fixed.
The successes of the project include :
Identified root causes for product quality variation
Removed waste from the process
Lean Six Sigma Tools Used
Project charter
Process mapping
SIPOC
Value stream mapping
Pareto charting
Root cause analysis
Cause and effect diagrams
5 Whys
Waste walk (Gemba)
Kanban
Audit DMAIC_Roadmap
Lean Six Sigma DMAIC Roadmap
Purpose Key Tools Key Outputs
Define To establish a quantified problem statement, objective and business case that will become the foundation to your Six Sigma project. Conduct stakeholder analysis, select team members and kick-off your project. Primary Metric Process Map Project Charter Project Plan * Process Map
* Gather VOC
* Translate VOC to CTQ’s
* QFD/HOQ
* COPQ
* Primary & Secondary Metrics
* Establish Project Charter
* Stakeholder Analysis
* Team Selection
* Project Plan
Measure Refine your understanding of the process. Assess process capability relative to customer specifications. Validate measurement systems. Brainstorm potential x’s. C&E SIPOC FMEA Cpk * Early Y=f(x) Hypothesis
* Detailed Process Map
* SIPOC
* Cause & Effect Diagram
* Cause & Effect Matrix
* FMEA
* Basic Statistics
* Normality Test
* Capability Analysis
* Gage R&R
Analyze Conduct data collection and planned studies in order to eliminate non-critical x’s and validate critical x’s. Establish a stronger and quantified Y=f(x) equation. Normality Test ANOVA 2 Sample t-test Equal Variances * Narrowed Y=f(x)
* 1 & 2 Sample t-tests
* 1 & 2 Proportions tests
* Equal variance tests
* Normality tests
* ANOVA
* Moods Median
* Mann Whitney
* Paired t-test
* Chi-Squared test
Improve Design, test and implement your new process or product under live operating conditions. Pilot solutions if feasible before broadly deploying expensive improvements or products. Pugh Matrix Linear Regression Binary Logistic Regression DOE * Refined Y=f(x)
* Pugh Matrix
* Correlation
* Simple Linear Regression
* Multiple Linear Regression
* Binary Logistic Regression
* Full Factorial DOE
* Fractional Factorial DOE
Control Plan, communicate, train and implement your product or process solutions. Ensure control mechanisms are established. Use Poke Yoke, visual controls, SOP’s and SPC wherever possible. Control Plan SOP’s Communication Plan SPC * Control Plan
* Training Plan
* Refined FMEA
* Communication Plan
* Standard Operating Procedures
* Five-S Audit
* Poke Yoke
* Visual Controls
* Statistical Process Control
