Logic of Six Sigma DMAIC Y=f(x) to explain the world .ppt

six sigma

1. Define
Measure
Analyze
Improve
Control
Operational
Excellence
By Lee Olson
Presentation to INFORMS
Six Sigma
Six Sigma:DMAIC; Y=f(x)
Is it aGoal, a Measure, a Process,
a Tool or an expletive deleted?

2. Define
Measure
Analyze
Improve
Control
Operational Excellence Training
Objectives
Understand the Basics of the Six Sigma Program
Understand How Six Sigma Relates to Lean, TOC, TQM
(Theory Of Constraints; Total Quality Management)
Ability to Define a Strategy and Roadmap for Success

3. Define
Measure
Analyze
Improve
Control
Operational Excellence Training
Define
Is it aGoal, a Measure, a Process, a Tool or an expletive
deleted?
Yes

4. Define
Measure
Analyze
Improve
Control
Operational Excellence Training
Define
Six Sigma
Is a management methodology
•Customer focused
•Data driven decisions
•Breakthrough performance gains
•Validated bottom line results

5. Define
Measure
Analyze
Improve
Control
Operational Excellence Training
Customer Focused
Our Performance Compared to Competitors
Importance to Customers
We’re Better They’re Better
High
Moderate-
to-’Low’
•Price
•Complaints
•OTD•Quality
•Training
•Complete
•Shared GoalsTop 5 Action Items
Driver Action Description Status Status Description Ow ner
Original Due
Date
Current
Due Date
Late Supplier DeliveriesMonthly reporting to suppliers on delivery &
quality metrics.
On
track
Report Cards Implemented. Adam 5/21 5/21
Late Supplier DeliveriesArrange face to face meetings with top
offenders.
On
track
Meetings Complete with top 10
Suppliers.
Beth 6/15 6/15
Late Supplier DeliveriesReview and approve supplier's corrective action
plan.
CautionCorrective Action Plan in Place for 2
major Suppliers
Carlos 7/15 9/15
xyz Cell Always Late Kaizen Event to focus on improving throughput
by 40% and improve labor efficiency by 35%
On
track
Event held 5/1. 25% throughput
improvement in May. Labor Efficiency
Increase of 30%
Doreen 5/21 5/21
Unrealistic Promise DateFocus on custom products to provide realistic
ATP based on inventory and leadtime of
components.
ProblemContinued lack of progress. Re-
structured and focused team.
Developing detailed plan.
Earnest 6/15 8/15
ON TIME DELIVERY (sample)
The percentage of sales order line items that ship complete on or before the original customer promise date, for
all line items shipped in the month.
On-Time Delivery
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
JanFebMarAprMayJunJulAugSepOctNovDec
Target
Pareto of Drivers
0%
25%
50%
75%
100%
Late
Supplier
Deliveries
xyz Cell Always
Late
Unrealistic
Promise
Date
Orders on
Credit Hold
Low Yield
on part abc Engineering
Change Orders
Reason
% Impact

6. Define
Measure
Analyze
Improve
Control
Operational Excellence Training
Data Driven Decisions
Why should we test or inspect Y, if we know this relationship?
•Y
•Dependent
•Output
•Effect
•Symptom
•Monitor
•Response
•X1 . . . XN
•Independent
•Input-Process
•Cause
•Problem
•Control
•Factor
To get results, should we focus our behavior on the Y or X ?
f (X)Y=

7. Define
Measure
Analyze
Improve
Control
Operational Excellence Training2308,537
3 66,807
4 6,210
5 233
6 3.4
 PPM
Breakthrough performance gains
Sigma is a statistical unit of measure which reflects process capability.
The sigma scale of measure is perfectly correlated to such
characteristics as defects-per-unit, parts-per million defective, and
the probability of a failure/error.
(Distribution Shifted ±1.5)
Process
Capability
Defects per Million
Opportunities

8. Define
Measure
Analyze
Improve
Control
Operational Excellence Training
Validated bottom line resultsP ri ce I ncre a se M a te ri a l Costs
V ol um e I nc. w i th Le ve ra ge
M a nu fa cturi ng
S G&A
V ol um e I nc. No Le ve ra ge
Ta x e s La bo r
W orki ng Ca pi ta l
Ge ne ra l -5% P ri ce Re du cti on
Impact on Bottom Line
Assuming a 10% change in the factor
Factors

9. Define
Measure
Analyze
Improve
Control
Operational Excellence Training
Define
Methodology
Define
Measure
Analyze
Improve
Control

10. Define
Measure
Analyze
Improve
Control
Operational Excellence Training
Roadmap
Example
Next ProjectDefine
Customers, Value, Problem Statement
Scope, Timeline, Team
Primary/Secondary & OpEx Metrics
Current Value Stream Map
Voice Of Customer (QFD)
Measure
Assess specification / Demand
Measurement Capability (Gage R&R)
Correct the measurement system
Process map, Spaghetti, Time obs.
Measure OVs & IVs / Queues
Analyze (andfix the obvious)
Root Cause (Pareto, C&E, brainstorm)
Find all KPOVs & KPIVs
FMEA, DOE, critical Xs, VA/NVA
Graphical Analysis, ANOVA
Future Value Stream Map
Improve
Optimize KPOVs & test the KPIVs
Redesign process, set pacemaker
5S, Cell design, MRS
Visual controls
Value Stream Plan
Control
Document process (WIs, Std Work)
Mistake proof, TT sheet, CI List
Analyze change in metrics
Value Stream Review
Prepare final report
Validate
Project $
Validate
Project $
Validate
Project $
Validate
Project $
Celebrate
Project $

11. •Develop a focused Problem Statement and Objective
•Develop a Process Map and/or FMEA
•Develop a Current State Map
•Identify the response variable(s) and how to measure them
•Analyze measurement system capability
•Assess the specification (Is one in place? Is it the right one?)
Practical
Problem
Problem
Definition
•Characterize the response, look at the raw data
•Abnormal? Other Clues? Mean or Variance problem?
•Time Observation • Spaghetti Diagram • Takt Time
•Future State Maps • Percent Loading
•Standard Work Combination
•Use Graphical Analysis, Multi-Vari, ANOVA and basic
statistical tools to identify the likely families of variability
Problem
Solution
•Identify the likely X’s
•5S • Set Up Time Reduction (SMED)
•Material Replenishment Systems
•Level Loading / Line Leveling
•Cell Design • Visual Controls
•Use Design of Experiments to find the critical few X’s
•Move the distribution; Shrink the spread; Confirm the results
Problem
Control
•Mistake Proof the process (Poka-Yoke)
•Tolerance the process
•Measure the final capability
•Place appropriate process controls on
the critical X’s
•Document the effort and results
•Standard Work • TPM
Identify
Problem
•Strategic Link to Business Plan defined in Project Selection Process
•Defined Business Impact with Op Ex Champion support
•Structured Brainstorming at all organizational levels
•Cause and Effect Diagrams identifying critical factors
•Primary and Secondary Metrics defined and charted
•Multi-Level Pareto Charts to confirm project focus
What do you want to know?
How do you want to see what it is that you need
to know?
What type of tool will generate what it is that you
need to see?
What type of data is required of the selected tool?
Where can you get the required type of data?
Problem Solving
Plan Execute
Execute Plan
Crane Co. Op. Ex. Methodology Originated by MBBs; D. Braasch, J. Davis, R. Duggins, J. O’Callaghan, R. Underwood, I. WilsonOperational Excellence Methodology
Based in part on Six Sigma Methodology developed by GE Medical Systems and Six Sigma Academy, Inc.

12. Define
Measure
Analyze
Improve
Control
Operational Excellence Training
Define
Key Items
Customers, Value, Problem Statement
Scope, Timeline, Team
Primary/Secondary & OpEx Metrics
Current Value Stream Map
Voice Of Customer (QFD)
(Quality Function Deployment)

13. Define
Measure
Analyze
Improve
Control
Operational Excellence Training
Project Selection
Impact
Business Impact
•Revenue Growth
•Cost Reduction
•Capital Reduction
•Key Business Objectives
•On Time Delivery
•Lead Time
•Quality
•Customer Satisfaction
Impact on Operational Excellence Metrics

14. Define
Measure
Analyze
Improve
Control
Operational Excellence Training
Evaluate and Rank Suggestions
Effort and Risk
Effort required
•People Resources
•Capital Resources
•Duration of Project
Probability of success
•Technical Risk
•Data available
•Knowledge of process
•Management Risk
•Aligned with objectives
•Support by value stream manager
Impact vs. Risk vs. Effort
•Assess ROI (Return On Investment)
•Assign priorities to projects

15. Define
Measure
Analyze
Improve
Control
Operational Excellence Training
Evaluate and Rank Suggestions
Example tool to rank projects
0106-01 Project Rating.xls#
Mfg
(M)
or
Admin
(A) Project Description
Revenue Growth
Cost Reduction
Capital Reduction
Key Business
Objective
On Time Delivery
Lead Time
Quality
Customer
Satisfaction
Total Impact
People Resources Capital Resources Duration of Project
Total Effort
Technical Risk
Management Risk
Total Risk
Variable weightings20%15%10%15%20% 5% 5%10%100%50%20%30%100%40%60%100%
1 A Customer Billing Errors 0 2 0 4 4 2 2 5 2.4 2 1 3 2.1 1 4 2.8
2 M
Warranty
scrap warranty vs sales
0 2 0 1 1 0 3 3 1.1 4 4 5 4.3 4 2 2.8
3 A Vendor Delivery Performance 0 2 2 2 5 4 3 0 2.2 1 1 3 1.6 1 2 1.6
4 M On Time Shipping Performance 2 1 2 4 5 0 1 5 2.9 4 1 2 2.8 1 3 2.2
5 A
Hiring and Retention
20% - 24% Turnover 0 3 0 2 1 0 3 2 1.3 3 2 4 3.1 1 4 2.8
6 A
New Product Development Cycle Time
3 4 2 5 3 3 4 5 3.6 5 3 5 4.6 5 5 5.0
7 M
Manufacturing Maintenance
Tooling Maintenance
0 3 0 1 2 3 1 0 1.2 1 4 1 1.6 1 1 1.0
8 A Day Sales Outstanding (DSO) 0 0 4 2 0 0 0 0 0.7 1 0 2 1.1 1 1 1.0
9 M FTY of 65% on product 123 4 4 2 5 4 4 5 5 4.1 2 1 1 1.5 2 1 1.4
RiskProject Information Impact Effort

16. Example chart to rank projects 0106-01 Project Rating.xls

17. Define
Measure
Analyze
Improve
Control
Operational Excellence Training
Measure
Establish measurement capability
•Validate the database (transactional)
•Gage R&R (Repeatability & Reproducibility)
•Calibration is not enough
•Many (or most) measurement systems are not capable
•How good is the data you are using to make decisions?
Fix the measurement system
•Enables calculation of process capability
•Enables calculation of alpha & beta risks
•This step is often skipped

18. Define
Measure
Analyze
Improve
Control
Operational Excellence Training
Analyze
(and fix the obvious)
Find all KPOVs & KPIVs
(Key Process Output Variables; Key Process Input Variables)
FMEA, DOE, critical Xs, VA/NVA
(Failure Modes Effects Analysis; Design Of Experiment)
Graphical Analysis, ANOVA
(Analysis Of Variance)
Future Value Stream Map

19. Define
Measure
Analyze
Improve
Control
Operational Excellence Training
Improve
Optimize KPOVs & test the KPIVs
(Key Process Output Variables; Key Process Input Variables)
Redesign process, set pacemaker
5S, Cell design, MRS
(Material Replenishment System)
Visual controls
Value Stream Plan

20. Define
Measure
Analyze
Improve
Control
Operational Excellence Training
Control
Management of Change
•Owned by project champion and value stream manager
•Critical to long term success of project
•Physical and cultural changes
Measurement controls
•On-going metrics
Visual Controls
•Enable workers to self-manage the process

21. Define
Measure
Analyze
Improve
Control
Operational Excellence Training
Basic Implementation
Roadmap
Understand and Define
Entire Value Streams
Deploy Key Business Objectives
-Measure and target (metrics)
-Align and involve all employees
-Develop and motivate
Define, Measure, Analyze, Improve
Identify root causes, prioritize, eliminate waste,
make things flow and pulled by customers
Control
-Sustain Improvement
-Drive Towards Perfection
Identify Customer Requirements
Vision (Strategic Business Plan)
Continuous Improvement (DMAIC)
Identify Customer Requirements

22. Define
Measure
Analyze
Improve
Control
Operational Excellence Training
HoshinKey: 4Impact Owner mSupport
Type in-->4 l m
1.26
44 44 m
1.15
444 44 mmmm m
3.2 4
4 4  m
3.1 3
44 4  m
2.2 2
4444444 4 m 
2.1 1
4444444 mmmmmm
3.0 2.0 1.0
1
2
3
4
5
6
7
8
Resource
Implement lean concepts in top 3 volume lines establish pareto of drivers for OTD IT Operations Quality Engineering Maintenance MarketingLeaders have ability to map a value stream Metrics module in all appropriate training sequences Training projects demonstrate flowdown of metics to operational level Develop culture of teamsImprove Customer Focus Educate/Get Everyone Involved Improve the Metrics Training
Establish tracking of OTD in every cell
Improve On Time Delivery to 98%
Train workers in how our products are used by our major customers
Complete 1 Leadership LGB training course Trainees participate in customer survey Complete 3 functional LGB training courses Bring reps from top 10 customers in for plant tours 100% Completion of LGB Projects
Conduct interviews with top 10 customers
Train functional leaders as LGBs
Train leadership team as Lean Green Belts (LGB)
Your Annual Breakthrough
Objectives
Your Manager's 1-Year
Breakthrough
Objectives
Indicator's and Goals
Benefits

23. Top 5 Action Items
Driver Action Description Status Status Description Ow ner
Original Due
Date
Current
Due Date
Late Supplier DeliveriesMonthly reporting to suppliers on delivery &
quality metrics.
On
track
Report Cards Implemented. Adam 5/21 5/21
Late Supplier DeliveriesArrange face to face meetings with top
offenders.
On
track
Meetings Complete with top 10
Suppliers.
Beth 6/15 6/15
Late Supplier DeliveriesReview and approve supplier's corrective action
plan.
CautionCorrective Action Plan in Place for 2
major Suppliers
Carlos 7/15 9/15
xyz Cell Always Late Kaizen Event to focus on improving throughput
by 40% and improve labor efficiency by 35%
On
track
Event held 5/1. 25% throughput
improvement in May. Labor Efficiency
Increase of 30%
Doreen 5/21 5/21
Unrealistic Promise DateFocus on custom products to provide realistic
ATP based on inventory and leadtime of
components.
ProblemContinued lack of progress. Re-
structured and focused team.
Developing detailed plan.
Earnest 6/15 8/15
ON TIME DELIVERY (sample)
The percentage of sales order line items that ship complete on or before the original customer promise date, for
all line items shipped in the month.
On-Time Delivery
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
JanFebMarAprMayJunJulAugSepOctNovDec
Target
Pareto of Drivers
0%
25%
50%
75%
100%
Late
Supplier
Deliveries
xyz Cell Always
Late
Unrealistic
Promise
Date
Orders on
Credit Hold
Low Yield
on part abc Engineering
Change Orders
Reason
% Impact

24. Define
Measure
Analyze
Improve
Control
Operational Excellence Training
Does it work?.
Source: American Customer Satisfaction Index, U Michigan, HBR, 2001
1999
73 companies
Ralston Purina
Quaker Oats
Hilton Hotels
Coca-Cola
Unilever
etc.
The top companies in Customer Satisfaction grow MVA at
nearly twice the rate of their poor-performing counterparts.$23
$42
0
10
20
30
40
50
Low High
Customer Satisfaction Index Score
Market Value Added
In Billions $

25. Define
Measure
Analyze
Improve
Control
Operational Excellence Training
What about Lean, TOC, TQM
Six Sigma
•Remove defects, minimize variance
Lean
•Remove waste, shorten the flow
TOC
•Remove and manage constraints
TQM
•Continuous Improvement

26. Value Stream Map -Current State
Customer
Demand = 45 per day
2 shifts
Stamping
342
CT=1sec
Co=1 hr.
Uptime=85%
S. Weld # 1
CT=3 min
Co=10 min.
Uptime=70%
I
I
I
I
Coils
5 days
CT= 15 min
Co=0 min.
Uptime=100%
2 shifts
CT= 67 min
Co= 23 min
FTY = 67%
2 shifts
Shipping
I
I
81
202
122
Assembly Test
90
1X
Daily
90/60/30 day
Forecasts
Order Entry
Production
Control
MRP
6 WEEK
Forecast
Suppliers
WEEKLY SCHEDULE
Lead Time -34 Days
5 days
1 sec
7.6 days
3 min
1.8 days
15 min
2.7 days
67 min
4.5 days
4 min
2 days
Lead Time
=23.6 days
1 shift1 shift
CT= 4 min
Co=0
Uptime=100%
2 shifts
Competitive Lead Time
= 3 Days
Takt Time
= 18.2 Minutes
Orders/day
= 36
Queue
= 1.5 Days
Touch Time
= 89 min

27. Customer
Demand = 45 per day
2 shifts
Stamping
342
CT=1sec
Co=1 hr.
Uptime=85%
S. Weld # 1
CT=3 min
Co=10 min.
Uptime=70%
I
I
I
I
Coils
5 days
CT= 15 min
Co=0 min.
Uptime=100%
2 shifts
CT= 67 min
Co= 23 min
FTY = 67%
2 shifts
Shipping
I
I
81
202
122
Assembly Test
90
1X
Daily
90/60/30 day
Forecasts
Order Entry
Production
Control
MRP
6 WEEK
Forecast
Suppliers
WEEKLY SCHEDULE
Lead Time -34 Days
5 days
1 sec
7.6 days
3 min
1.8 days
15 min
2.7 days
67 min
4.5 days
4 min
2 days
Lead Time
=23.6 days
1 shift1 shift
CT= 4 min
Co=0
Uptime=100%
2 shifts
Competitive Lead Time
= 3 Days
Takt Time
= 18.2 Minutes
Orders/day
= 36
Queue
= 1.5 Days
Touch Time
= 89 min
Competitive LT = 3 days
Takt Time = 18.2 min
Customer Data
On-Time Delivery
Demand = 45/day

28. Customer
Demand = 45 per day
2 shifts
Stamping
342
CT=1sec
Co=1 hr.
Uptime=85%
S. Weld # 1
CT=3 min
Co=10 min.
Uptime=70%
I
I
I
I
Coils
5 days
CT= 15 min
Co=0 min.
Uptime=100%
2 shifts
CT= 67 min
Co= 23 min
FTY = 67%
2 shifts
Shipping
I
I
81
202
122
Assembly Test
90
1X
Daily
90/60/30 day
Forecasts
Order Entry
Production
Control
MRP
6 WEEK
Forecast
Suppliers
WEEKLY SCHEDULE
Lead Time -34 Days
5 days
1 sec
7.6 days
3 min
1.8 days
15 min
2.7 days
67 min
4.5 days
4 min
2 days
Lead Time
=23.6 days
1 shift1 shift
CT= 4 min
Co=0
Uptime=100%
2 shifts
Competitive Lead Time
= 3 Days
Takt Time
= 18.2 Minutes
Orders/day
= 36
Queue
= 1.5 Days
Touch Time
= 89 min
Raw = 5 days
WIP = 12.1 days
FG = 6.5 days
Inventory

29. Customer
Demand = 45 per day
2 shifts
Stamping
342
CT=1sec
Co=1 hr.
Uptime=85%
S. Weld # 1
CT=3 min
Co=10 min.
Uptime=70%
I
I
I
I
Coils
5 days
CT= 15 min
Co=0 min.
Uptime=100%
2 shifts
CT= 67 min
Co= 23 min
FTY = 67%
2 shifts
Shipping
I
I
81
202
122
Assembly Test
90
1X
Daily
90/60/30 day
Forecasts
Order Entry
Production
Control
MRP
6 WEEK
Forecast
Suppliers
WEEKLY SCHEDULE
Lead Time -34 Days
5 days
1 sec
7.6 days
3 min
1.8 days
15 min
2.7 days
67 min
4.5 days
4 min
2 days
Lead Time
=23.6 days
1 shift1 shift
CT= 4 min
Co=0
Uptime=100%
2 shifts
Competitive Lead Time
= 3 Days
Takt Time
= 18.2 Minutes
Orders/day
= 36
Queue
= 1.5 Days
Touch Time
= 89 min
Touch Time = 89 min
Flow of Value
Lead Time
Lead Time = 23.6 days

30. Customer
Demand = 45 per day
2 shifts
Stamping
342
CT=1sec
Co=1 hr.
Uptime=85%
S. Weld # 1
CT=3 min
Co=10 min.
Uptime=70%
I
I
I
I
Coils
5 days
CT= 15 min
Co=0 min.
Uptime=100%
2 shifts
CT= 67 min
Co= 23 min
FTY = 67%
2 shifts
Shipping
I
I
81
202
122
Assembly Test
90
1X
Daily
90/60/30 day
Forecasts
Order Entry
Production
Control
MRP
6 WEEK
Forecast
Suppliers
WEEKLY SCHEDULE
Lead Time -34 Days
5 days
1 sec
7.6 days
3 min
1.8 days
15 min
2.7 days
67 min
4.5 days
4 min
2 days
Lead Time
=23.6 days
1 shift1 shift
CT= 4 min
Co=0
Uptime=100%
2 shifts
Competitive Lead Time
= 3 Days
Takt Time
= 18.2 Minutes
Orders/day
= 36
Queue
= 1.5 Days
Touch Time
= 89 min
CT (67) > Takt Time (18)
Constraints
OTD, Lead Time
Max Wip = 7.6 days

31. Customer
Demand = 45 per day
2 shifts
Stamping
342
CT=1sec
Co=1 hr.
Uptime=85%
S. Weld # 1
CT=3 min
Co=10 min.
Uptime=70%
I
I
I
I
Coils
5 days
CT= 15 min
Co=0 min.
Uptime=100%
2 shifts
CT= 67 min
Co= 23 min
FTY = 67%
2 shifts
Shipping
I
I
81
202
122
Assembly Test
90
1X
Daily
90/60/30 day
Forecasts
Order Entry
Production
Control
MRP
6 WEEK
Forecast
Suppliers
WEEKLY SCHEDULE
Lead Time -34 Days
5 days
1 sec
7.6 days
3 min
1.8 days
15 min
2.7 days
67 min
4.5 days
4 min
2 days
Lead Time
=23.6 days
1 shift1 shift
CT= 4 min
Co=0
Uptime=100%
2 shifts
Competitive Lead Time
= 3 Days
Takt Time
= 18.2 Minutes
Orders/day
= 36
Queue
= 1.5 Days
Touch Time
= 89 min
CO = 23 min
CO = Changeover
Setup Times
OP Margin, Lead Time
CO = 1 hour

32. Customer
Demand = 45 per day
2 shifts
Stamping
342
CT=1sec
Co=1 hr.
Uptime=85%
S. Weld # 1
CT=3 min
Co=10 min.
Uptime=70%
I
I
I
I
Coils
5 days
CT= 15 min
Co=0 min.
Uptime=100%
2 shifts
CT= 67 min
Co= 23 min
FTY = 67%
2 shifts
Shipping
I
I
81
202
122
Assembly Test
90
1X
Daily
90/60/30 day
Forecasts
Order Entry
Production
Control
MRP
6 WEEK
Forecast
Suppliers
WEEKLY SCHEDULE
Lead Time -34 Days
5 days
1 sec
7.6 days
3 min
1.8 days
15 min
2.7 days
67 min
4.5 days
4 min
2 days
Lead Time
=23.6 days
1 shift1 shift
CT= 4 min
Co=0
Uptime=100%
2 shifts
Competitive Lead Time
= 3 Days
Takt Time
= 18.2 Minutes
Orders/day
= 36
Queue
= 1.5 Days
Touch Time
= 89 min
Maintenance
OTD, Lead Time
Uptime = 70%

33. Customer
Demand = 45 per day
2 shifts
Stamping
342
CT=1sec
Co=1 hr.
Uptime=85%
S. Weld # 1
CT=3 min
Co=10 min.
Uptime=70%
I
I
I
I
Coils
5 days
CT= 15 min
Co=0 min.
Uptime=100%
2 shifts
CT= 67 min
Co= 23 min
FTY = 67%
2 shifts
Shipping
I
I
81
202
122
Assembly Test
90
1X
Daily
90/60/30 day
Forecasts
Order Entry
Production
Control
MRP
6 WEEK
Forecast
Suppliers
WEEKLY SCHEDULE
Lead Time -34 Days
5 days
1 sec
7.6 days
3 min
1.8 days
15 min
2.7 days
67 min
4.5 days
4 min
2 days
Lead Time
=23.6 days
1 shift1 shift
CT= 4 min
Co=0
Uptime=100%
2 shifts
Competitive Lead Time
= 3 Days
Takt Time
= 18.2 Minutes
Orders/day
= 36
Queue
= 1.5 Days
Touch Time
= 89 min
QualityFTY = 67%

34. Customer
Demand = 45 per day
2 shifts
Stamping
342
CT=1sec
Co=1 hr.
Uptime=85%
S. Weld # 1
CT=3 min
Co=10 min.
Uptime=70%
I
I
I
I
Coils
5 days
CT= 15 min
Co=0 min.
Uptime=100%
2 shifts
CT= 67 min
Co= 23 min
FTY = 67%
2 shifts
Shipping
I
I
81
202
122
Assembly Test
90
1X
Daily
90/60/30 day
Forecasts
Order Entry
Production
Control
MRP
6 WEEK
Forecast
Suppliers
WEEKLY SCHEDULE
Lead Time -34 Days
5 days
1 sec
7.6 days
3 min
1.8 days
15 min
2.7 days
67 min
4.5 days
4 min
2 days
Lead Time
=23.6 days
1 shift1 shift
CT= 4 min
Co=0
Uptime=100%
2 shifts
Competitive Lead Time
= 3 Days
Takt Time
= 18.2 Minutes
Orders/day
= 36
Queue
= 1.5 Days
Touch Time
= 89 min
What is the pitch time?
Flow of Value
OTD, Lead Time
Who is setting the pace?

35. Define
Measure
Analyze
Improve
Control
Operational Excellence Training
Making it happen
Three major roles
Implementer
•Learns the tools
•Works the process
•Solves day to day problems
Manager
•Learns the methodology
•Manages a value stream
•Reviews project teams
Leader
•Establishes the vision for the future
•Sets priorities
•Encourages
Where do you
need to focus?