Welcome

1. Welcome Combining Lean and Six Sigma by David Rucker President, Rucker & Associates and Paula Dube Continuous Improvement Leader, Performance Fibers

2. LeanSigma A blend of Lean Manufacturing and Six Sigma improvement tools Applied using Kaizen Methodology LeanSigma generates rapid, team-based results

3. Evolution of LeanSigma Lean Six Sigma Ford Deming 60s Toyota Production System Quality Improvement Tools 70s Reduce Variation Just-in-Time TQM 80s Six Sigma (Motorola) Lean 90s 00s LeanSigma

4. Two of the world’s “Leanest” Both are GROWING and lead in profitability

5. Waste Elimination Worker productivity Identification of defects is immediate with one piece flow Equipment uptime Waste elimination Flexibility and responsiveness Lead-time reduction Reduce set-up/changeover time Inventory reduction Lean Manufacturing

6. Lead-Time Reduction Time Order Entry Production Planning Accounts Receivable Customers Suppliers Distribution Manufacturing Admin Admin Business Process Kaizen Business Process Kaizen Shop floor Kaizen Prod Plan MFG Supp Dist Cust A/R O-E Operational Lead Time Critical for driving improvement to your customers

7. Defective products Overproduction Inventories Excess motion Waste in Manufacturing Wasted Time and Activity Core Process Value Excessive Motion (Walking to Next Task, etc.) Defective Products (Identifying, Handling, Fixing) Excessive Inventories OPERATIONAL LEAD TIME Waiting (Often Result of Unbalanced Tasks) Unneeded Processing Time Overproduction Transportation (Movement to Storage area) • Processing • Transportation • Waiting Lead time reduction: identify and eliminate waste

8. Disciplined, rigorous problem-solving techniques Analysis of multi-variate defects Focus on reducing variation Root cause analysis Measurement Systems analysis Measurement focused Six Sigma

9. Focus of Six Sigma Y=f(x) X1…….XN Y Dependent Output Effect Monitor Independent Input Cause Control

10. Six Sigma DMAIC Process Define/ Measure Who are the customers, what are their priorities and how is it linked to our strategy? Baseline the process and verify the data Control Analyze Sustain the gains from the improvement phase Determine the most important causes of the defects Improve Implement improvements to eliminate the defects

11. Kaizen Key Principles Clear objectives Extensive team involvement Tight focus on time (one week) Quick and simple, action first Necessary resources available right away Immediate results Corrective action can be immediate

12. Cross-functional team-based process for rapid improvement Bias for action Creativity before capital Focus on results Focus on physical transformation Learn by doing Overcome resistance Instill change culture Kaizen Breakthrough

13. DMAIC Process Using Kaizen DMAIC Kaizen M = Kaizen event AI = Kaizen event C = 30 day follow up M AI C ~ 1 - 2 months Traditional Six Sigma C M A I ~ 4 - 6 months

14. DMAIC Kaizen- Measure Phase Day 1 Day 2 Day 3 Day 4 Day 5 Training & Scope Teach & Do: Teach & Do: Teach & Do: • Comparative Analysis • Measurement System Analysis • Improve measurement system, if necessary • Determine Process Capability • Collect Live data • Quick kills • LeanSigma Overview • Kaizen Breakthrough Methodology • LeanSigma Measure Tools • Identify defect, “Y”, & project scope • Enhanced Spaghetti Map • Quality Map • Verify Standard Operations • Comparative Analysis • Collect Historical Data • Comparative Analysis • Basic Quality Tools • Cause & Effect Chart • Gather Additional Data if Required • Presentation of Measure Phase

15. New Product Development New Process Development Process Optimization Process Capability Sigma Kaizen Create Flow Waste Elimination Logic & Intuition Lean Kaizen Lean and Six Sigma Integration 6 Sigma (3.4 DPM) 5 Sigma (233 DPM) 4 Sigma (6,210 DPM) 3 Sigma (66,807 DPM) 1-2 Sigma (308,537 DPM)

16. Focuses on lead time and variation reduction Combines quick action with Measurement focus Extensive Team Involvement Implementation with Kaizen Speed Drives culture change Quickly attacks the 10 to 20% cost of quality Integrate Lean and Six Sigma

17. Case Study Quality Control Lab Kaizen Event • Goals • Reduce inventory 25% • Improve productivity 25% • Create Standard Operations • September 15- 19, 2005

18. Baseline Metric: People Flow 320 ft worth of movement !!

19. Takt Time Chart Takt Time = 620 minutes = 525 seconds 71 Tests

20. Trial Setup Instron Denier T.S. Coherency Operator One Operator Two WIP WIP WIP WIP Exit Material Flow Operator 3

21. Before Layout New Cellular Layout

22. Summary of Achievement Goal is 71

23. Trial Results TAKT TIME Computer issues disrupt ability to meet Takt Time

24. Network too slow Re-Test procedure causing extra tests Eliminated unnecessary test Mistake-proofed sample log screens Coached adherence to standard operations across all four shifts Separated log screens to minimize file open/close time Six Sigma: Reducing Variation Achieved Target of 71 Tests!

25. Sigma Kaizen EventReduce Fray Defects by 50% Case Study March 28 – April 2, 2005

26. Charter Defined defect as broken filament High level process map Detailed Quality Map Gage R & R on measurement systems Fish bone diagram to determine cause and effect Difficulty impact matrix Process Capability Comparative Analysis Define and Measure

27. Repeatability Visual Inspection Gage R & R Results Within Appraisers Assessment Agreement Appraiser # Inspected # Matched Percent 95 % CI Brenda 32 25 78.13 (60.03, 90.72) Vic 32 23 71.88 (53.25, 86.25) Chris 32 23 71.88 (53.25, 86.25) Katrina 32 24 75.00 (56.60, 88.54) Edgar 32 24 75.00 (56.60, 88.54) Sue 32 10 31.25 (16.12, 50.01) # Matched: Appraiser agrees with him/herself across trials Reproducibility Between Appraisers Assessment Agreement # Inspected # Matched Percent 95 % CI 32 7 21.88 (9.28, 39.97) # Matched: All appraisers' assessments agree with each other. Goal should be > 90% correct decisions!

28. No operators met the gage R&R goal of 90% Visual expert was only 62% repeatable! Completed parallel study using automated defect counter Gage results met 90% goal Visual Inspection Gage R & R Results Through MSA, determined good product was labeled defective.

29. Project Charter to Implementation completed in 6 weeks! Kaizen Team process helps buy-in and sustainment DMAIC at Kaizen Speed 9 to 12 months Traditional Black Belt Project Kaizen 6 weeks Improved yield 2.5%!