JULIAN KALAC -EXAMPLES OF LEAN SIX SIGMA BLACK BELT PROJECTS

JULIAN KALAC LEAN SIX SIGMA PROJECTS 13-Jan-2016

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Examples of Lean Six Sigma Cost Saving Improvements

1. HVAC DUCTING PRODUCTION CAPACITY INCREASE

DP largest unit production item are elbows (Galvanized, HVAC Duct Elbow)

Current capacity = 2.1 million elbows per year ( 2 shifts 5days + 2days OT)

Current demand has increased to 2.5 million of them per year.

Three possible solutions to the capacity short fall problem.

current cost per elbow is $0.68

Solution 1). add a third shift, cost per elbow $0.76

Solution 2). outsource the 440,000 elbows, cost is $0.82

Solution 3). Buy 3 new machines, cost to make is $0.62 with a payback in 1.3 years

Currently 1 operator runs 2 machines (manual labour intensive machines)

Improvement: Designed a 1 man cell to run 3 semi-auto machines simultaneously The payback =1.3 years with annual savings of $472K ($0.08 cost/pc reduction )

New machines designed for quick changeover <10min vs current 25min (efficiency gains).

RESULTS:

1 MAN CELL 3 MACHINES REDUCED LABOUR COST BY

TOTAL ANNUAL SAVINGS AFTER PAYBACK = $472K IN COST/PC REDUCTION


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2. Robot Welding Setup Time Reduction ----Tier 1 Automotive ($650K/year savings

PROBLEM STATEMENT

2 station robot weld down 38min between changeovers, 6 changeovers/day = 3.8hrs downtime/day

Current setup time= 38min

Standard Time= 15min

Target setup Time < 5min

IMPROVEMENTS:

Designed 6 SIGMA modular welding fixtures, with quick connect clamps and eliminated bolts,

screws and

combined tacking with robot welding into 1 operation

Implemented SMED external setup and eliminated internal setup time

Standardized welding fixtures, eliminated bolts, screws and

implemented , 5S shadow board, tooling push-pin toggle clamps

RESULTS: ZERO SETUP TIME ACHIEVED

Robot 9 SMED SOP=ZERO SETUP TIME

SIDE A CHANGEOVERstep # Operation Est Time (min)

1 PREPARE NEXT WO MATERIAL 4

2 GET NEEDED FIXTURES/TOOLS/CLAMPS 3

3 UNLOAD LAST PARTS FROM SIDE 1 1

4 INSPECT AND TOUCH UP PARTS 2

5 TACK PARTS 2 (EXTERNAL SETUP)6 TAKE DOWN FIXTURE FROM SIDE 1 4 BEING DONE

7 LOAD PARTS ONTO SIDE 1 1 WHILE ROBOT rUNNING

8 START WELDING SIDE 1 0

TOTAL TIME FOR SETUP= 16

WELD CYCLE STARTED = 8 T SETUP TIME CLOCK STARTS

AFTER 8 MIN

SIDE B CHANGEOVEREXTERNAL SETUP

7 TAKE DOWN FIXTURE FROM SIDE 2 5 INCLUDED IN

8 LOAD PARTS ONTO SIDE21 1 WELD CYCLE (8MIN)

9 START WELDING SIDE 2 0

TOTAL SETUP TIME SIDE B= 6

TOTAL INTERNAL SETUP TIME= 0

TOTAL EXTERNAL SETUP TIME= 12

OLD SETUP TIME (MIN)= 38

DEC 4 SETUP (MIN) = 0

SETUP TIME IMPROVEMENT (MIN) = -38

WHILE THE ROBOT IS WELDING SIDE B, LOST TIME=0 MINGOAL IS TO CHANGE STATION A BEFORE ROBOT FINISHES WELDING SIDE B

DURING WELD CYCLE (8MIN) THE FOLLOWING WAS DONE


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3. Lean - Packaging Productivity Improvement ----Consumer Goods Packaging

Converted Batch & Queue into continuous flow production which reduced total cycle time from

3 days to 12hrs/order

Increased shift capacity by 82%

Eliminated 3rd shift (14 operators + temps)

Redesigned the layout into LEAN Flexible CELLS with cross functional trained workers,

rotation schedule to manage bottlenecks and 5S

Reduced online “hidden rework” costs by 40% and implemented in-process checks to ensure

a “check and balance” system

Reduced inventory by 30% ($1Mil inventory reduction) total operational savings over $742K

BEFORE LEAN MANUFACTURING

AFTER LEAN IMPLEMENTATION


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4. INJECTION MOULD SET-UP REDUCTION PROJECT --($500K/annual savings)

Problem Statement: 22 injection moulds ranging from 93 weeks new to moulds over 10 years

old), varied in sizes & capacities, had set-up/changeover times from 4-6hrs, resulting over

$500K machine inefficiencies and productivity losses

Objective: Reduce the set-up time from 6hrs to under 2hrs

Significant Improvements: over 4.5hrs of Set-Up Time was reduced by the following

IMPROVEMENTS:

o Implemented SMED principles, 5S SHADOW BOARDS, standardized, Set-Up

o New water manifolds with shorter hoses and different IN/OUT connectors

o Standardized bolt lengths and utilized quick-connect clamps

o Interchangeable inserts and standardized back plates with different hole pattern

o Standardized Mould kits & implemented shadow boards

o Documented SOP and validated set-up/changeover on different shifts

These improvements resulted in over $500K annual savings

Setup/Changeover Tooling Improvements


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5. EATS LEAN TRANSFORMATION PROJECT ----Total Savings= $900K/year

Exhaust After Treatment System “EATS” Tier 1 Automotive Supplier to Volvo and Mack

Problem Statement 1. Product/design issues causing 30% Internal Quality reject rate , limiting throughput 8 sets/day

2. Unable to meet increased VOLVO demand 60 pcs/week, causing Volvo production 2 day

3. Unable to meet TAKT TIME < 3 days, Currently cycle time > 4 days,

Objective(s)

1. Improve Product quality by 80%, reduce reject rate from 42% to <5%

2. Reduce Lead time by 50% (from 4 to 2 days)

3. Productivity by 50%, from 8-12pcs/day

LEAN TRANSFORMATION RESULTS

1. Reduced quality reject rate from 30% down to 3%

2. Reduced total lead time from 4.5 down to < 2 days

3. Reduced total cycle time from 3Hrs to 0.7Hrs/pc

4. Reduced WIP from 33 pcs to 12pcs in < 2 weeks

EAST (Exhaust After Treatment System)


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6. PROGRESSIVE DIE STAMPING PRESS CAPITAL PROJECT

PROBLEM: Demand increased by 30%, requiring 1Mil units/year

Current capacity = 550,000 pcs/year , at peak season customer demands exceed machine capacity

High labour cost/pc = $1.28/pc

2 critical labour intensive operations are BOTTLENECKS preventing additional capacity

RE-Engineered Solution = Progressive Stamping Die

2 Operations @ 1 TIME

1 Band Saw 2 Forming with 3 setups


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RESULTS

• Increased capacity by over 1,000,000 units/year (92%)

• Reduced labour cost by $0.59/pc

• 1.26 Payback period, ROI= 77%

• TOTAL ANNUAL SAVINGS AFTER PAYBACK= $990K/year


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7. LEAN LOGISTICS MANUFACTURING (DPM) AND DISTRIBUTION (NT) 2013-2014

Streamlined a complex Canada wide Manufacturing-Supply Chain-Logistics replenishment

operation, which reduced storage/transportation costs by $920K, inventory levels by $2.2Mil (from

$3.4Mil to $1.2Mil). Total Operational savings= $3.1Mil

Problem Statement:

Transportation Logistics from DP Manufacturing to NT Distribution centres inefficient. Customer same

day orders and replenishment being picked up from DP Manufacturing delivered to NT Distribution

Centre, then reloaded onto an outbound carrier resulting in either late deliveries, lost shipments or

delivered to wrong address, resulting in shortages 50%, high WIP levels and excessive transportation

costs.

Improvements:

Implemented Lean Logistics using 1-step cross-docking distribution from DP to final destination, which eliminated shortages, reduced delivery time from 4 days to < 1 day

Integrated Manufacturing-Supply Chain with Warehouse Management System which reduced

total WIP inventory by $2Mil, eliminated 2 carriers, utilized same carrier for Inbound/Outbound

Implemented Advanced shipping notice (ASN) which enabled Synchronized inbound delivery with

outbound shipments, bar code tracking with shipment RFID chips from supplier

NT DISTRIBUTION CENTERS

DP PRE-PAID CUSTOMERS


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8. BATCH MANUFACTURING CYCLE TIME REDUCTION

Problem:

1. Low Suite utilization 11%, causing capacity constraints with other products

2. Batch cycle time = 5 days per batch, customer Takt Time= 4 days/batch

Objective: Increase utilization and production capacity by 30% without additional capital

RESULTS: increased Final Yield by 19%,

increased suite utilization from 11% to 62%, and

Reduced total batch processing time from 5 to 3.5 days/batch (42%)

Total Operational savings = $1.4Mil/year

Project completion time= 3.5 months


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9. FCI AUTOMOTIVE – QS9001/ISO14000

NEW PROGRAM LAUNCH

Successfully managed a $22M USD FORD/TRW new ABS/VSC program for 2005 FORD Windstar minivan,

from Design to full PPAP launch on-time & within budget.

Took over a complex FORD program in jeopardy of being lost, gained the trust and credibility of FORD/TRW

Program managers and successfully PPAP launched the program on-time

Successfully improved a previously strained customer relationship with honesty, integrity trust

Developed a mandrel prototype concept for insert moulding 52 connector pins, 4 power blades, and 4 bushings

for the Automatic Breaking systems ABS & Vehicle System Control VSC CONNECTORS

Developed & managed all APQP & PPAP documentation including: Design reviews, PFMEA DVP&R, SPC,

Control Plans, SOP, and production tooling design

Developed automation specifications, RFQ, vendor selection, managed the design, build & installation of the

custom full-automated assembly line Total budget for automation worth over $2.3M USD

ABS & VCS Connector module


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PROCESS OPTIMIZATION USING SIX SIGMA DESIGN OF EXPERIEMNTS TO REDUCE CYCLE TIME

10. DOE Injection Moulding Cycle Time And Process Control Optimization

Problem Statement: Injection moulding tight tolerances and process control not established causing poor

process capability <1 cpk and High defect rate ->11%

Objective: Optimize process to reduce defect rate by 50%, and reduce cycle time using Design of Experiments

using 2-taguchi method

Results: 1. Defect rate reduced by 70% from 11% to < 2%,

2. reduced cycle time by 35% and

3. reduced material weight by 20%

4. Total savings = $530K in operational cost reductions


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11. LARGE FORMAT OPERATIONAL TRANSFORMATION - Printing/Packaging - 2015

Problem Statement -

• New Business unit -Large Format “LGF” department running at a loss for 2 years consecutively

• Current capacity 72 shipped items/day, Customer demand =100 items/day

• Currently Average lead time (LT)= 13 days , customer demand = 2-4 days

• New $2Mil equipment underutilized Overall Equipment Efficiency (OEE) = 37%

• Internal Quality Reject Rate = 42%, causing high rework, scrap rate = 33%

Objective(s):

Increase LGF capacity from 72 to > 100 items/day without additional labour/capital equipment

Reduce lead time from 13 to < 3 days

Improve Gross Margin from -$30k/PD to +1K/PD, PD= month

Results:

Increased capacity from 72 to 131 items/day –> (83%)

Reduced lead time from 13 days to <1 day Implemented NEXT DAY delivery for all orders

Increased Gross Margin from -$30K to +$35.6K/PD ($70K/month swing) $840K/year

Transformed Large Format from cost centre into Profit centre and achieved


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12. BLACK CLAWSON EXTRUSION LAMINATOR SAFEGUARDING

PROBLEM STATEMENT: Used Laminator purchased by company without proper safeguarding and shut down by Ministry of Labour ordering a PSHR by a P.Eng

OBJECTIVE: Design machine safeguarding to enable Laminator compliance with OHSA section 851 Industrial Establishments

LAMINATOR BEFORE PSHR

CRITICAL AREAS TO BE GUARDED

JULIAN KALAC -EXAMPLES OF LEAN SIX SIGMA BLACK BELT PROJECTS

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