A Case Study on Improving Productivity by Reducing ...

1 150 Elin AppliancesA Case Study on Improving Productivity by Reducing Operation Cost as Six Sigma Process ImprovementKeywords: DMAIC, FMEA, KPI Dash Board, NVA, Pilot Verification, Root cause Analysis, Risk Analysis, Six sigma process improvement, VOCA bstractThis case Study illustrates the application of six sigma process improvement to Productivity improvement in manufacturing process. IntroductionTo ensure sustainable profitable growth in a highly price-sensitive appliance market Cost reduction through operational excellence is the key imperative. Elin Appliances upgrades can often be justified in terms of savings due to increased Productivity . However, in a Six Sigma organization, the DMAIC Method & host of tools can be used to improve Productivity through process Sigma DMAICSix Sigma is a quality improvement program that looks at processes with a view to analyzing process steps, determining what process elements need improvement, developing alternatives for improvement, then selecting and implementing one.

2 It relies on a variety of qualitative and quantitative tools, emphasizing the use of data and statistical analysis with in a method called DMAIC, an acronym for the names of its five phases (Define, Measure, Analyze, Improve, and Control) (Table 1). Six Sigma projects are typically selected for their potential savings in Improving any process, whether it is in production, administration, engineering, or services. A Six Sigma project typically begins with a high level definition of a process, using a diagram to specify the process boundaries, inputs, outputs, customers, and requirement. In the measure phase, a process metric is selected and used to baseline the current performance of the process. In the analysis phase, the process is analyzed, usually with a process map and a failure modes and effects analysis (FMEA), but may include other types of analysis.

3 The process map shows each process step with its inputs and outputs and provides the basis for either a FMEA or a quantitative, usually statistical, analysis. Areas for improvement are pinpointed and alternatives are generated and evaluated. Once an improvement option is selected and implemented, the project enters the control phase. In this phase, a plan is established for monitoring and controlling the process to ensure that gains are maintained. The use of the DMAIC method may vary between projects. For example, the Measure and Analyze phases of this project ran concurrently rather than Improving Productivity by Reducing Operation Cost as Six Sigma Process Improvement 151sequentially. Also, a proposed solution may emerge early in the Measure and Analysis phase, leading to an emphasis on planning and implementation in the Improve phase.

4 Such was the case in the Productivity Improvement project. Consequently, this paper focuses on the Measure and Analyze phases in which a simulation based on a process map provided the justification for Productivity 1. DMAIC Method for Process ImprovementPhase StepsDefine - Identify an opportunity and define a project to address -Analyze the current process and specify the desired - Identify root causes and proposed - Prioritize solutions; select, plan, validate, and implement a - Develop a plan for measuring progress and maintaining PhaseAs per Voice of the Customer( VOC ) ,customer products should have price stability & products should be competitive in pricing. To meet customer requirement cost reduction is the key driver for profitable / Opportunity statementEstimated losses in factory due to poor Productivity exceeded 100 K Euros 1.

5 In 2006-2007 financial year Productivity improvement would generate hard and soft Measure PhaseThe Flow through M-Phase-1. Develop process measures2. Collect Process data3. Check data Quality4. Understand Process behavior5. 6. Baseline Process CapabilityProcess mapping data for Problem statement Throughput time: Data collected for all assembly linesObservationThrouput time 9181716151413121111110100908070605040_X= Chart of throughput time for Steam IronReduce NVA on line 152 Elin AppliancesObservationThrough put time 2825221916131074155504540353025_X= Chart of throughput time of Juicer Mixer Grinder As per data, there is wide variation in process through put timesCycle Time Study of LineWork stages- LEDIC ycletime in secondsWegh A BoxPutting f box in A BoxFancy packingstickering &Anti rustvisual cleaningCleaning &visual checkDial fixing &on off positionCoolingTemp CHECKINGPre heatingSafety testInlay fixingCord routingHousing fixingMains cord fixingEarthing screw fixingSq nut , terminalNeon lamp fixingBodyscrew fixingBody mountingMetal cover fixing.

6 Type plateMetal cover keepingRotary bkt fixingcold setting25002000150010005000 Chart of Cycletime vs Work stages- LEDIWork stages - JMGC ycletime in secondsPalletBopp TAPEF ancy boxBuffer packingNumberingpoly bag packingcleaningJar matchingSieve matchingSafetyBottom fixingwire housingMotor fixingSpeed switchMiddle housing visual180160140120100806040200 Chart of Cycletime vs Work stages - JMGA ssembly lines are highly unbalanced due to no value added cause analysis of line stoppageCount2887717320 2845 2545 2270 1605 % in minutesPercentFactors causing line stoppageOtherUtility problemsManpower issuesMachine breakdownkit not issuedComponent not availableComponent quality600005000040000300002000010000010 0806040200 Pareto of Line stoppage factors for period Jan'07- July'07 Component having high Quality issue Improving Productivity by Reducing Operation Cost as Six Sigma Process Improvement 153 Why analysis of Non Value Added activity on valuedadded stageWHYWHYWHYWHYWHY1 Toaster cooling stagetimeHeat dissipation Is not properly controlledCooling equipment deficiencyDesign of cooling equipment is not optimised2 Sieve matching and jar matchingSelective assay processTo check for noise and vibrationUnbalanclng of sieveInteraction effect of componentsspecs ofcomponentsnotoptimised3 Iron cooling stageCooling time is highUniform cooling is not happeningIron farthest from fan takes longer time to coolIron coding is influenced by ambient conditions alsocooling arrangement Is adequate4 Preheating stageHas to go through 3 heating cyclesThis is a to ensure iron attains steady stateRequirement for 100% temp validationReliability of cold settingCold

7 SettingprocessInadequate5 Packaging and cleaninglinePackaging stages are not balancedManual and too many offline activitiesTo many items in packaging designPackaging design not simple6 Pop up testingtime at the testing stageOnly four toasters can be tested at a timeTesting equipment capacity is a bottleneckEquipment is not designed to line PhaseThe flow through A-phaseDetermine potential root cause to measure1. Analyze data using process stratification2. Verify root causes with test data3. Solution selection process Evaluating criterias Generate solution ideas Select solutions determine cost benefit Verify solutions with tests & data Map new process 154 Elin AppliancesHigh impact solutions selected against each problem statement Problem statement Line stoppage Remove hex screw Problem statement High NVA & TPT Problem statement High TPT Replicate steam iron cooling jig Introduce conveyor belt Recalibrate standard Duplicate /repair moulds Plastic JMG collar enclosed chamber for powder Jar assy relocation Near to comaker Source sieve from better supplier Automate cold setting process Temperature checking on sampling basis Control Sieve unbalance <10 mg& motor coupler Within mm run out Increase capacity of pop up testing jig Simplify packing and cleaning stages Strengthen engineering function at comaker Standing

8 Working Streamline material feeding Automate RTV application Implement phaseThe Flow through implement phase-Assess risk using FMEA Design implementation plan Communicate to People Pilot solution and track improved performance Improving Productivity by Reducing Operation Cost as Six Sigma Process Improvement 155 Elements of an implementation plan Project plan Budget/control Communication Updating the business case & objectives Identifying resource requirements Dealing with resistance The implementation plan Risk analysis by FMEA Overview of pilots Some of the high risks for solutions that were addressed through modeRecommended actions1 Conveyorisationa. Breakdownb. Misalignment in speed1. Proper design evaluation and release 2. Preventive maintenance plan 3. Proper workinga. High fatigue levels below morale in operators1. reconfirm working ergonomics during pilot 2.

9 Have a proper communication plan to deal with resistance and change 3. show bench marks3 Milkman feederMaterial not reaching on main line on Proper routing plan2. proper design of material transfer trolleys4 Sampling checking of temperature at nine stageIrons with high/ ow temp, passing Into market1. Cold setting and nine stage in a con-trolled atmosphere2. Control plan far cold setting process 3. Introduce automation in cold setting process5 Automation In RTV applicationa. Machine breakdownb. High cycle times c. High wastages1. Preventive maintenance plan 2. SOP for Job setup validation and how to operate the of antirust in finished ironsOxidation of soleplate in market1. Proper evaluation and release 2. ControlonT1088 Aluminium composition156 Elin AppliancesPilot verification plan was used to modify the proposed solutions before on Proposed solutionPilot VerificationModifications done on solutions1 Automation on RTV application1.

10 High wastage of RTV2. Misalignment of RTV dispenser with soleplate3. new failure points identified1. Reprogramming of m/c 2. reduce nozzle dia3. make work instruction and training4. revision of critical spares list2 Oil shields in Jar pots1 Paper caps not durable 2. Fitment Issues3, Operator needs change into plastic caps 2. modify dimensions was cooling jigs1 Metal cover not cooling in required time 2. Compressor not getting burnt1. Addition of cooling fans on top 2. proper capacity of compressors were incorporated in the Working1. Operator fatigue 2. mental bafflers 3. working ergonomics not proper1. Gradual phasing in of standing working2. one to one communication channels3. lncrease table heightThe improved process-Primary metric unit/man hour809803749743737731725719713707701100 05000 Week noWeekly in minutes _X=165U C L=516LC L=-186ba80980374974373773172571971370770 16004503001500 Week noM ov ing Range__M R= C L= L=0ba11 Down time trend of Low end dry Iron Improving Productivity by Reducing Operation Cost as Six Sigma Process Improvement 157 Process mean improved with reduced variation8088027467407347297237167097036 5432 Week noWeekly unit/ man hour_X= C L= L= noM ov ing Range__M R= C L= L=0 ABUnit / man hour for Dry Irons(NDI/ODI )