Basic tools for process improvement module 7

Project Deliverables: Kanban & Audit

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Case Study: Lean

Process Improvement – Nova Point

Tina Agustiady

Certified Six Sigma Master Black Belt

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Executive Summary

Nova Point is a growing product for a main ice-cream factory named Uncle T’s.

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 (PM’s) for main equipment

• PM’s 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 Why’s

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 (6M’s):

o Manpower

o Machinery

o Methods

o Measurements

o Materials

o Environment (Mother Nature)

• Focus on the quantity of ideas rather than quality. One person’s idea will

trigger someone else’s 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 Why’s

The 5 Why’s 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 Why’s 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 Why’s 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 Why’s

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 Why’s

• Waste walk (Gemba)

• Kanban

• Audit